How to Choose the BEST Mutual Fund | Proven 10-5-3-1 System (Detail Guide)

Summary

This video compares the Parag Parikh, HDFC Flexi Cap, and JM Flexi Cap funds, focusing on their turnover, consistency, and investment strategies. Parag Parikh is highlighted as a defensive, long-term option, while JM Flexi Cap is seen as an aggressive, volatile choice. HDFC Flexi Cap seeks a balance between the two. The video advises viewers to align their choices with their risk appetite: Parag Parikh for conservative investors, JM Flexi for those desiring higher returns with more risk, and HDFC for those wanting a blend of both. Diversifying between two funds is also suggested for balanced returns.

Takeaways

• 😀 Parag Parikh Flexi Cap Fund is a defensive, long-term investment with low turnover (8.67%).
• 😀 HDFC Flexi Cap Fund is a balanced fund with moderate turnover (33.99%), aiming to balance defensive and aggressive strategies.
• 😀 JM Flexi Cap Fund is an aggressive fund with high turnover (145%), focusing on volatility and quick trades.
• 😀 Parag Parikh has shown consistent top-10 performance but never ranks number 1, indicating steady growth.
• 😀 HDFC Flexi Cap has fluctuating consistency but has ranked number 1 at times, showing variable performance.
• 😀 JM Flexi Cap is a top performer at times but lacks consistent long-term stability.
• 😀 Parag Parikh Flexi Cap has international exposure, providing diversification for investors.
• 😀 The analysis suggests that none of the funds is inherently 'wrong'—the choice depends on the investor's risk tolerance.
• 😀 If you prefer a defensive, less volatile approach, Parag Parikh is the better choice.
• 😀 For aggressive investors aiming for top performance, JM Flexi Cap may be a better fit.
• 😀 A balanced approach could involve splitting investments equally between two funds for diversification and stability.

Q & A

What is the primary focus of Parag Parikh Flexi Cap Fund?

Parag Parikh Flexi Cap Fund follows a defensive, long-term investment strategy with a focus on stability. It has a low turnover, suggesting fewer trades and a focus on long-term growth.

How does HDFC Flexi Cap Fund compare in terms of turnover to other funds?

HDFC Flexi Cap Fund has a turnover of 33.99%, which is moderate compared to Parag Parikh's 8.67%. This indicates that HDFC Flexi Cap Fund might be taking a balanced approach between defensive and aggressive investing.

What does a high turnover, like that of JM Flexi Cap Fund, suggest?

A high turnover of 145% in JM Flexi Cap Fund indicates a more aggressive approach with frequent trading and a focus on capitalizing on market volatility.

Which fund is more suitable for a defensive investor?

Parag Parikh Flexi Cap Fund is more suitable for defensive investors due to its low turnover, stability, and focus on long-term growth with international exposure.

What is the significance of a fund’s consistency in performance?

Consistency in performance shows a fund's ability to deliver steady returns over time. Parag Parikh has been consistently ranked in the top 10, though not always the top performer, which signifies a stable approach. In contrast, HDFC and JM Flexi Cap Funds show more fluctuation in consistency.

Can you describe the performance consistency of HDFC Flexi Cap Fund?

HDFC Flexi Cap Fund has been ranked number one at times but its consistency has been fluctuating. This suggests the fund may experience periods of strong performance followed by weaker periods.

How does JM Flexi Cap Fund’s performance compare to others in terms of top rankings?

JM Flexi Cap Fund has been a top performer multiple times but its performance consistency is unpredictable, meaning it can experience peaks of high performance and periods of lower performance.

What does the script suggest for an investor who is unsure about which fund to choose?

If an investor is unsure, the script suggests a balanced approach by choosing two funds and splitting the investment evenly between them. This strategy allows the funds to balance each other out and mitigate risks.

Which fund would be better for an investor seeking aggressive returns?

For investors looking for more aggressive returns, JM Flexi Cap Fund is a better choice due to its higher turnover and focus on capturing market volatility.

What is the benefit of Parag Parikh Flexi Cap Fund's international exposure?

The international exposure in Parag Parikh Flexi Cap Fund allows investors to diversify their portfolio, reducing risk by investing in global markets and potentially gaining from opportunities abroad.