Investing in MF or investing in direct equity

#1
Which one is good on a long term?
Investing in direct equity OR investing in equity mutual fund?
(Both under the guidance of an advisor and assume that the person is an aggressive investor ready to take some risk)
Thanks
 

shekharinvest

Well-Known Member
#3
Which one is good on a long term?
Investing in direct equity OR investing in equity mutual fund?
(Both under the guidance of an advisor and assume that the person is an aggressive investor ready to take some risk)
Thanks


Investing in Equity Mutual Fund is 1000 times better that investing in Equity on advice.

Better to be a trader than aggressive investor. Learn some trading skills. :D
 
#4
Can't find time for trading. That's why.
I'm planning to put only 5-10k / month in direct equity. I have a set of SIPs of 7k / month too. So when considering long term, its better to add that 5-10k/month to Mutual fund itself?

Also is there any special gain by buying at dips rather than doing SIPs on fixed dates?
Thanks
 
#5
Can't find time for trading. That's why.
I'm planning to put only 5-10k / month in direct equity. I have a set of SIPs of 7k / month too. So when considering long term, its better to add that 5-10k/month to Mutual fund itself?

Also is there any special gain by buying at dips rather than doing SIPs on fixed dates?
Thanks
I think if you don't have time, you should merely invest in SIP and forget about it. Diversify uour investment across 3 or 4 funds.
Also, since you're anyway doing SIP, I don't think you need to time the market.
 
#6
Thanks.
Currently my monthly SIPs are allocated in the following proportion.

PPFAs LTV fund- 15%
Quantum LTE - 30%
HDFC Mid-Cap - 15%
Axis Long Term Equity - ELSS - 25%
Quantum Equity FoF - 15%

Is this portfolio allocation is correct when looking for a long term . Or is the portfolio more towards Mid Cap funds? I actually wanted more large caps in portfolio. Which one shud I delete.
Thanks
 

shekharinvest

Well-Known Member
#7
Thanks.
Currently my monthly SIPs are allocated in the following proportion.

PPFAs LTV fund- 15%
Quantum LTE - 30%
HDFC Mid-Cap - 15%
Axis Long Term Equity - ELSS - 25%
Quantum Equity FoF - 15%

Is this portfolio allocation is correct when looking for a long term . Or is the portfolio more towards Mid Cap funds? I actually wanted more large caps in portfolio. Which one shud I delete.
Thanks

You may explore Value research online website there you will get lots of information regarding various MF's investment opportunity.
 
#9
For Investing in Equity one should have lots of Patience, need deep market research, portfolio investment, keep your eyes on market, follow market trend and take help from brokers as well. Direct equity investing is considered more dynamic by the investor one can make higher profits by putting some extra time and efforts. It is expensive than Mutual fund.
In mutual fund long term investment is compounding. It take less time, efforts, money, experience and less specialised knowledge to get good returns. It is also tax Efficient. In Mutual Fund portfolio manager invest the client money into diversified projects for getting higher returns and minimizing the risk. These managers are experienced in different fields which help in multiplying the returns of investors in long term period.

In long term one can invest both in direct equity and Mutual fund both have their own advantages and disadvantages. Investors can make more money by smartly investing proportionately in both.
 
#10
-- In Equities Higher the risk Higher the returns.
-- Mutual funds have comparatively lesser risk and provide good profits.
-- Equities require more research and knowledge. But in Mutual fund we simply select a specific fund and relax at home,experienced Fund manager will manage your funds and portfolio.
-- Equities have more liquidity than mutual funds.
-- Mutual funds have more diversification than equities.
-- Mutual funds are lesser expenses than equities.
--Mutual funds have more investments options e.g retirement plan, child education plan, tax benefit plan etc.

Never put all eggs in one basket.
According to me one should invest in both equities and Mutual funds. We should make a balance between equities and mutual fund.
 

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