Long term wealth creation with minimum intervention

[vivektrader]

I am sure that Nifty Midcap 150 momentum 50 index is an outperformer historically, but I don't see any funds based on that index among the toppers.

https://money.rediff.com/mutual-funds/top

On the other hand, I see BSE Enhanced Value index fund doing great recently. But it doesn't have much history.

Also, can you please compare this midcap index against the Nifty Next 50 index ?

Since April1, 2005, the Nifty 50 index gave a CAGR of 13.75% vs 21.16% in said momentum fund

 

[vivektrader]

Right. But Tata is a young fund, only about 2 years old, where a lot of funds must've given this much CAGR, and the nifty index too.

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It's the same with Edelweiss

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Compare with the Enhanced Value Index Fund

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Compare with the ELSS or Retirement or Balanced Advantage or Multi/Dynamic Asset Allocation funds.

You will hardly find any 15 year old funds which have given 20-22% returns over this term.

Hence I think that even if you apply for the NFOs, average on the way down. This will increase the CAGR. If 10rs. becomes 40, it is far less than 9.8 becoming 40.

Yes,
I haven't taken data from the fund, I have taken data from NSE site for the index, which is available from April1, 2005. These funds will mirror that index with some tracking error (around 0.68%)
One will also get additional returns as dividends will be re-invested

 

[timepass]

If you are going for equity only, then there are funds labelled "Value" or "Focus" funds that you may want to research. But for long term >10 years, I will hold with the Multi Asset Funds.

 

[timepass]

Since April1, 2005, the Nifty 50 index gave a CAGR of 13.75% vs 21.16% in said momentum fund

Yes,
I haven't taken data from the fund, I have taken data from NSE site for the index, which is available from April1, 2005. These funds will mirror that index with some tracking error (around 0.68%)
One will also get additional returns as dividends will be re-invested

Exactly my point. We don't have much data about the historical performance of the Funds, only the benchmark. I couldn't even find any ETFs related to this index.

 

[vivektrader]

If you are going for equity only, then there are funds labelled "Value" or "Focus" funds that you may want to research. But for long term >10 years, I will hold with the Multi Asset Funds.

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Rest assured I have compared all available, This fund is based on best index, best longterm returns.

 

[vivektrader]

Exactly my point. We don't have much data about the historical performance of the Funds, only the benchmark. I couldn't even find any ETFs related to this index.

No ETFs yet, we cant wait for another 19yrs to believe historical returns, can only compare historical data and the rationale of the fund, it is dynamic in nature, will choose from best moving midcaps. That rationale is a powerful tool.

 

[timepass]

To each his own. In my experiments, I have both Tata and Edelweiss funds in my portfolio. But for 10+ years I wouldn't depend on Equity alone, I would choose Multi/Dynamic Asset.

 

[vivektrader]

If you are going for equity only, then there are funds labelled "Value" or "Focus" funds that you may want to research. But for long term >10 years, I will hold with the Multi Asset Funds.

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This Franklin fund has a return of 38.21 in last one yr, most good funds are above 50%. Momentum fund gave 65% last 1yr

 

[vivektrader]

Its important to enter and add only in more than 10% correction (atleast fund wise) , preferably 15% or more as average yearly volatility is around 24%, No point of SIP in this one. if long term is 20%, and we buy or add only in corrections using the volatility, you can imagine further improvement in returns.

 

[timepass]

This Franklin fund has a return of 38.21 in last one yr, most good funds are above 50%. Momentum fund gave 65% last 1yr

This thread is about long term >10 years, so I guess the immediate past is not very relevant.

Its important to enter and add only in more than 10% correction (atleast fund wise) , preferably 15% or more as average yearly volatility is around 24%, No point of SIP in this one. if long term is 20%, and we buy or add only in corrections using the volatility, you can imagine further improvement in returns.

Ok. I don't know if one can apply that for the mutual funds, maybe equities.

Anyway, as said earlier, to each his own. There won't be one size for all