Important Thing To Know While Investing In Mutual Funds !

All of us have that 1 friend who is super smart with stock market or crypto investing.

We might have also offered to give all our money to that person asking them to handle it.

Similarly, when a mutual fund company performs really well we might be tempted to put all our money in that company's various funds.

Here's why that might not be a good idea:

👉🏻 Concentration risk: There is usually a lot of overlap between different mutual funds of the same company. For eg, there is an 83% overlap between HDFC Flexi cap fund and HDFC Top 100 fund. So much overlap is not good for diversification

👉🏻 Similar fund view: More often than not, the same fund manager will be responsible for multiple funds. He / she might impose the same investment philosophy on the future outlook of various industries on multiple funds. So if 1 fund underperforms all of them will underperform. For eg, HDFC mutual fund all have an inclination towards PSU stocks

This is also true for debts where the views on interest rate movement and the company's debt repayment capabilities can have a cascading effect on all the debt funds within the company.

➡️ TLDR: Along with asset diversification also do fund house diversification to take the extra precaution.
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#financewithsharan #investingtips #investingforbeginners #financetips #mutualfunds #personalfinance

[indus]

The best part is his moustache falls and he is trying to control his laughter very hard. 😂

[khushidas]

Everyone is Interested in the last 4-5 Seconds!!😂

[rugvedkorde]

Last 3 seconds were absolutely amazing 😂

[prathameshmahurkar]

That mustash fall was amazing always thought it will happen one day or other🤣🤣🤣🤣

[jainamssj]

Did you pick up the moustache afterwards?

[gibsosmart]

You grew so much that you can keep your bloopers as real video

[hardikrana]

He is the guy that every commerce student should show to his parents that commerce also has scope

[hairshmadhavan]

Every mutual fund will disclose it's holdings, the percentage of each company in the total holding and the expense ratio. These are more important than diversifying across mutual fund houses.

[Moneymantra]

"U can't dance with shit dude"

*-fake moustache*

[shoryabeohar]

Mustache be like ....hey I don't follow you ..🤭🤭🤭🤭

[Goodwinisback]

Good that you didn't remove that part...

[siluverukirankumar]

Note: If anyone wants to invest via STP you should invest in same Mutual Fund House to transfer money between mutual funds.

[ankushmahesh]

Maga swalpa innu detail agi helthiya. We need more info like this. Keep up the good work

[mayankbahekar]

POV - you realised you miss the last part and you watched the whole video again 😂😂😂😂

[sindevil]

Swalpa elobarated video maadi pa. Useful information though 👍🏼

[ziyathonline]

No one watched the important information given.... Only we all see the Mustach falls ... Sharan bro this will work out... :)

[subhmaypatra]

End part was the best, his moustache fell and he vehemently tried to control his laughter 😂
So natty ❤❤

[harshaltavhare]

Everyone talking about last 3 seconds.
But the whole video was a masterpiece 💘

[janipasha]

Your voice is clear in this video.. thanks

[ramanghimire]

The very first time I saw your video, I found your content useful, but your "I follow my my dude" part a lil cringe. Now I love this part most, and the information. Once again, love from Nepal, Sharan!