MUTUAL FUND Investing Strategies for BEST Returns in 2024! | Ankur Warikoo Hindi

Summary

The video script discusses personal investment strategies, emphasizing the importance of personalizing one's mutual fund strategy according to age, income, and risk appetite. It advises against blindly following others' fund choices and highlights the speaker's own investments in small-cap funds, explaining the rationale behind each selection. The speaker also shares insights on evaluating funds based on long-term returns, management quality, and expense ratios, while cautioning about exit loads and suggesting a balanced approach to equity investment.

Takeaways

• 😀 Investing in someone else's mutual funds without personal research can be unwise, as individual risk appetites and financial situations vary.
• 🧐 It's crucial to do one's own homework before choosing mutual funds, rather than blindly following others' recommendations.
• 🤔 Personal finance is personal; the decision on which mutual fund is right for you should be solely yours, based on your age, income, and risk tolerance.
• 📈 The speaker has invested in various mutual funds, including small-cap funds, which they find interesting due to their long-term investment strategy.
• 💰 The returns on the speaker's investments are highlighted, with some funds showing exceptionally high returns, like 32% annually, which is considered unrealistic in the long term.
• 🌐 The speaker mentions the importance of considering global and local investments, as well as the reliability of returns from different types of funds.
• 📊 The significance of looking at long-term returns rather than short-term fluctuations is emphasized, with a focus on 3, 5, and 10-year performance.
• 💹 The speaker advises on the strategy of investing in mutual funds based on age and income brackets, suggesting different allocation percentages for equity investment.
• 🚫 The importance of avoiding mutual funds with high exit loads or those that have a high expense ratio is mentioned to prevent unnecessary costs.
• 🔢 The speaker discusses the ideal fund size for investment, suggesting a range between 2000 to 25000, to avoid market manipulation and high transaction costs.
• 📚 The speaker concludes by sharing their personal investment criteria and encourages viewers to make informed decisions based on their own research and not just follow advice.

Q & A

What is the speaker's opinion on copying someone else's mutual fund strategy?

The speaker believes that copying someone else's mutual fund strategy is not advisable because what works for them may not work for you due to different risk appetites, financial situations, and investment goals.

What is the first criterion the speaker considers when choosing mutual funds?

The first criterion is the return on investment over a long period, specifically not looking at one-year returns but considering three, five, and even ten-year returns.

What is the significance of the size of the assets under management (AUM) in mutual funds according to the speaker?

The speaker looks for a balance in the AUM, suggesting it should be between 2000 to 25000 crores, as too much or too little can lead to price fluctuations and difficulty in managing the fund effectively.

Why does the speaker avoid investing in small-cap funds with high expenses?

High expense ratios can significantly reduce the returns on investment. The speaker prefers funds with lower expense ratios, which are typically around half a percent to one and a half percent.

What is the speaker's view on exit loads in mutual funds?

The speaker advises avoiding any mutual funds with exit loads, especially long-term investors, as they can incur penalties for selling before a certain period.

What is the speaker's strategy for investing in small-cap mutual funds?

The speaker invests in small-cap mutual funds with a long-term perspective, expecting high returns but also acknowledging the associated risks and the need for a balanced approach.

How does the speaker approach the selection of mutual funds based on age and income?

The speaker suggests a strategy based on age and income brackets, recommending different allocations to equity investments, with a focus on diversification across large-cap, mid-cap, and small-cap funds.

What is the speaker's approach to investing in mutual funds for long-term financial goals?

The speaker emphasizes a long-term investment horizon, suggesting that one should invest in mutual funds that have shown consistent returns over a period of 10 to 15 years, considering factors like risk tolerance and financial goals.

What is the role of 'momentum strategy' in the speaker's investment approach?

The momentum strategy involves investing in stocks that are rising in price with the expectation that they will continue to rise before they start to fall. The speaker invests in mutual funds that follow this strategy, aiming for short-term gains.

How does the speaker evaluate the performance of mutual funds?

The speaker evaluates mutual funds based on their historical performance over different time frames, their expense ratios, and the size of the assets they manage, as well as the funds' investment strategies and risk profiles.

What advice does the speaker give regarding the diversification of investments?

The speaker advises diversifying investments across different types of mutual funds, such as large-cap, mid-cap, and small-cap, to balance risk and returns, and tailors this advice based on the investor's age and income.