Some information on mutual funds

[Nikhil Jain]

Hello everyone

I am new to mutual funds. Please help me with below funds:

1. Which platform I should choose to invest in mutual funds? Like Groww, ET money app or I should go to my bank and do it from their side?
2. I am planning to invest in multi asset fund. I researched some of the funds like ICIC pru multi asset fund, quant, parag parekh etc. Are these funds good?

Please help me. Thanks

 

[realanubhav]

Choosing the right platform and funds for your first foray into mutual funds can be overwhelming, but I'm happy to help! Here's my take on your questions:
1. Platform Choice:

• Convenience: Both Groww and ET Money are user-friendly apps designed for beginners. They offer research tools, investment recommendations, and easy portfolio management.
• Direct vs Regular Plans: Consider if you want direct plans (lower expense ratio) or regular plans (distributor commission). Groww and ET Money offer both, while most banks only offer regular plans.
• Additional Features: Some platforms, like Groww, offer SIP calculators, goal-based investing, and fractional investing. Choose one based on your needs and comfort level.

2. Multi-Asset Funds:
Multi-asset funds offer diversification across asset classes like equity, debt, and gold. They can be a good choice for beginners seeking moderate risk. However, consider these factors:

• Investment Horizon: Match the fund's risk profile and allocation to your investment horizon (e.g., 5-7 years for moderate risk).
• Fund Performance: Look at the fund's historical performance, expense ratio, and risk-adjusted returns compared to peers.
• Asset Allocation: Understand the fund's allocation to different asset classes and how it aligns with your risk appetite.

Here's a quick review of the funds you mentioned:

• ICICI Pru Multi Asset Fund: Balanced fund with equity exposure of 40-80%. Decent long-term track record.
• Quant Multi Asset Fund: Hybrid fund with equity exposure of 50-70%. Relatively new fund with a good initial performance.
• Parag Parekh Multi Asset Fund: Conservative hybrid fund with equity exposure of 20-40%. Consistent performer with lower risk.

Remember:

• These are just examples. Diversify your portfolio with 2-3 funds across different categories.
• Don't solely rely on past performance. Research, compare, and consult a financial advisor if needed.
• Invest regularly through SIPs for long-term wealth creation.

 

[Nikhil Jain]

Thanks Buddy for detailed explanation. I don't know any financial advisor as of now.

 

[Nikhil Jain]

@realanubhav I was researching about icici multicap fund. I just went to icici bank and they suggested me. But they will invest in regular plans which will have high expense ratio. Is it safe to go with it through Bank?

 

[ShavirB]

Hello everyone

I am new to mutual funds. Please help me with below funds:

1. Which platform I should choose to invest in mutual funds? Like Groww, ET money app or I should go to my bank and do it from their side?
2. I am planning to invest in multi asset fund. I researched some of the funds like ICIC pru multi asset fund, quant, parag parekh etc. Are these funds good?

Please help me. Thanks

Please don't avail the Bank option. Mostly likely your Bank will give the option of investing in Regular Funds and not Direct Funds. You can go to AMC's website and invest there.

Regarding Multi Asset Funds - it would be difficult to comment without knowing your risk appetite and investment objectives. Multi Asset as a category invests in multiple assets like Equity, Debt, Gold, etc. This gives your some element of diversification along with the downside protection. But then Returns may not be as high as say a pure equity fund in long term

 

[loknath028]

Hello everyone

I am new to mutual funds. Please help me with below funds:

1. Which platform I should choose to invest in mutual funds? Like Groww, ET money app or I should go to my bank and do it from their side?
2. I am planning to invest in multi asset fund. I researched some of the funds like ICIC pru multi asset fund, quant, parag parekh etc. Are these funds good?

Please help me. Thanks

I would recommend you Groww app. Which I personally use for Mutual fund Investment. Go for ICICI multi asset fund.

 

[hashtagunknown]

ET Money is a great app to start. You can track external investments as well. It monitors your MF performance and suggests changes for a healthy growth.
Go for Direct Mutual Funds and Growth Plan for Effective Compounding to take place.

 

[The INSANE Trader]

You can use ET money I am using it since 2 yrs its a great app it also have a genius plan where you have to pay a very nominal charge per month the have a advisory team which will help you to select good funds out of many.
Parag parek usually have more expenses ratio and exit load is also >1 in many funds. Quant is really giving a great profits to the investors.

 

[theraj0007]

Hello everyone

I am new to mutual funds. Please help me with below funds:

1. Which platform I should choose to invest in mutual funds? Like Groww, ET money app or I should go to my bank and do it from their side?
2. I am planning to invest in multi asset fund. I researched some of the funds like ICIC pru multi asset fund, quant, parag parekh etc. Are these funds good?

Please help me. Thanks

YOU CAN INVEST THROUGH GROWW OR ZERODHA
START WITH MAINLY BLUE CHIP FUNDS AND MULTI CAP FUND
GO WITH KOTAK FLEXI CAP AND HDFC MULTI CAP FUND

 

[rohit_20085]

@realanubhav I was researching about icici multicap fund. I just went to icici bank and they suggested me. But they will invest in regular plans which will have high expense ratio. Is it safe to go with it through Bank?

It's safe but will be costlier. Instead go for direct plans of funds through their website or apps like kuvera & etmoney. The difference in expense ratio will be around 0.4 to 1%.

 

[pinkycjee]

Hello everyone

I am new to mutual funds. Please help me with below funds:

1. Which platform I should choose to invest in mutual funds? Like Groww, ET money app or I should go to my bank and do it from their side?
2. I am planning to invest in multi asset fund. I researched some of the funds like ICIC pru multi asset fund, quant, parag parekh etc. Are these funds good?

Please help me. Thanks

Hello!

1. **Choosing a Platform**: When it comes to investing in mutual funds, there are several platforms available, each with its own set of features and benefits. Platforms like Groww, ET Money, and various bank apps offer convenient ways to invest in mutual funds. Here are some factors to consider when choosing a platform:

- User Interface: Look for a platform with a user-friendly interface that makes it easy to navigate and understand.
- Fees and Charges: Compare the fees and charges associated with each platform, including transaction fees, account maintenance fees, and any other hidden costs.
- Fund Selection: Check the range of mutual funds available on each platform to ensure they offer the funds you're interested in investing in.
- Customer Service: Consider the quality of customer service provided by each platform, including availability, responsiveness, and support options.
- Security: Ensure that the platform adheres to high-security standards to protect your personal and financial information.

Ultimately, the best platform for you will depend on your preferences, investment goals, and comfort level with technology. You may want to try out a few different platforms to see which one suits you best.

2. **Multi-Asset Funds**: Multi-asset funds invest in a combination of asset classes such as equity, debt, and commodities to provide diversification and potentially higher returns. When considering multi-asset funds like ICICI Pru Multi Asset Fund, Quant Multi Asset Fund, and Parag Parikh Flexi Cap Fund, here are some factors to keep in mind:

- Fund Performance: Evaluate the historical performance of the fund compared to its benchmark and peers. Look for consistency in returns over different market cycles.
- Fund Manager Expertise: Research the experience and track record of the fund manager managing the multi-asset fund. A skilled and experienced fund manager can play a crucial role in delivering good returns.
- Asset Allocation Strategy: Understand the fund's asset allocation strategy and how it aligns with your risk tolerance and investment objectives.
- Expense Ratio: Consider the expense ratio of the fund, which represents the annual fees charged by the fund house. Lower expense ratios can have a positive impact on your overall returns.
- Risk Profile: Assess the risk profile of the fund and ensure it matches your risk appetite. Multi-asset funds can vary in their risk levels depending on their asset allocation.

It's also a good idea to consult with a financial advisor who can provide personalized advice based on your individual financial situation and goals. They can help you select the right mutual funds and guide you through the investment process.

Remember, investing in mutual funds involves risks, including the risk of loss of capital. It's essential to do thorough research and seek professional advice before making any investment decisions.