Avoid This Type Of Mutual Funds !

Avoid investing in actively managed large cap mutual funds.

Why?

83% of them were unable to beat the benchmark over a 5 year period.

You see - every actively managed fund is trying to beat the benchmark. For large cap funds the benchmark is NIFTY 100 index fund.

Now this index fund is just blindly investing in the top 100 companies of India in proportion of their size. Hence, there is no fund manager actively looking at the investments coz it's all automated.

Due to this, the expense ratio is ten times lesser compared to actively managed large cap funds.

So if a large cap fund is struggling to beat the index, why the hell are you investing in it and paying more in fees?

Large cap active mutual funds lose their advantage as the country becomes more developed.

Midcap and small cap mutual funds still have that edge. The US stock market has already seen these changes happen.

How to invest?
👉🏻 Sort large cap index funds in increasing order of expense ratio and tracking error
👉🏻 Filter out funds less than 250 Crore
👉🏻 Give 80% weightage to expense ratio and 20% weightage to tracking error for ranking (lower the better)
👉🏻Pick the top ones in their respective category
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#financewithsharan #mutualfunds #investingforbeginners #moneytips #savemoney #investingforbeginners

[laiibrahim]

Having a mentor is my personal recommendation. It seems like a good bet if you have limited market knowledge, but I'm not sure where you'll find an experienced one.

[NicholasBall]

Investing in mutual funds offers a structured and diversified approach to building wealth, managed by professional fund managers. While there are costs and some limitations, the benefits of diversification, professional management, and ease of access make mutual funds a popular choice for achieving a variety of financial goals.

[__.ut__]

"I have graduated from IIMA"
"So what should I do ?"
Every IIMA alumni needs to hear this so bad

[jackwillison]

I recently realized the importance of using credit cards for the majority of my purchases simply because of the cashback and other reward it provides you. I want to be able to get a house on loan and I am also seeking to buy stocks to grow my money as a newbie. Any suggestions on stocks to buy?

[robustlion]

I don't know anything what they are talking about 💀 still i am listening

[yuvaharibalaji]

“So what should i do🤷‍♀️“🤣🤣 gets me all the time

[KAlpha]

IIM fellows keep reminding people about where they came from. Even if it was 20 yrs ago.

[ashutoshsharma]

Just to drink some alcohol you go to the bank and argue with the manager wow 😂

[vikk]

Saying in sharan's words - " I didn't understand shata also "

[pantheraleo]

Syyyyk... Someone has stolen your caption.... 😭

[pomdada]

I should have seen this earlier. Great tip and I agree. Keep this coming sir.

[hemanthsumanth]

IIMA and Suits(Harvey) and you, , , My favourite and dream to achieve.

[das]

your reel popped up yesterday and I must admit, you keep it very entertaining...

[Sushilk]

" I've graduated from IIMA"
proceeds to attach his graduation photo from RV College for 1sec so that people think he has actually graduated from IIMA

[nsetra]

Hey Sharan, I am your FAN! Just fantastic videos and the best act I have ever seen! Good Luck!

[This_is_Piyush]

@sharan.. wht u mean by "filter out funds with less than 250 cr" as written in description ? U mean to filter out and invest in those or filter them out and invest in the other ones after meeting the third conditio . Also the second part of the third line i.e., regarding 20% thing. its not clearly ubderstood.

[sanshirs]

“Check the Captions below” — where exactly Dude !???

Phukna kum kar bro

[Alexedmartin]

No doubt, one of the best ways to grow and save your money is through investing. You don't need a fortune to get started. Even a small amount can turn into millions if you invest wisely. I wasn't financially free until my 40s, and I'm still in my 40s, but I've already purchased my second house, enjoy a monthly passive income, and achieved 4 out of 5 of my financial goals. I hope this inspires someone to realize that it's never too late to start, regardless of your age. You can begin investing today and change your future! Investing has been a life-changing decision for me

[psnexampreeth]

So what should I do???
His expression during that question is awesome

[ramyasrimadaka]

I really love your shorts and financial advices