November'19: Mutual Fund Investments Update

Hand in hand with the stock market, my mutual funds too did appreciate. For November’19 my mutual fund investments increased by Rs.3,142. That is about 1.85% increase. This of course is not as glamorous as the sexy 4.5% I got from stocks. But, safer and I am happier for it.

November’19 my Mutual Fund Investments

Total	Total Invested	October’19	November’19	Invested in Nov’19	MoM Increase%	Profits
Overall	169,550	169,550	183,027	10,334	8%	3,143

Overall as of 20th November’19 my Mutual fund investments are showing an Annual Return of 11.6%. This is not so bad compared to Fixed deposits. However, truth be said, it is not enough. I need to make it 14% or more. To meet my 5-to-5-in-12 challenge, all my investments need to make a minimum of 1% per month. Only at this pace can I make it to Rs.5 crores in 12 years.

Side Pocketing

A number of large and mid-cap companies are collapsing due to debts and scams. Some are collapsing, merely due to the fear from the markets. Funds have now started setting aside a portion of their corpus. Called, side pocket, this is kind of a rainy day fund, to offset loss in case a company in their portfolio collapses due to debt. This is pretty common among hedge funds for treating their illiquid assets. In November’19, Franklin Templeton has started this for their funds. This matters to me as a big bulk of my funds are with them.

Now, side pocketing is not really a bad practice. It helps reduce impact on the fund due to losses from stressed investments. However, this will only be for existing investors (which I am) and at the time of exit, getting this money out will be a bit of a hoop. This makes debt funds less liquid than I like.

Fresh investments in November’19

I’ve added Rs.10,334 to various funds this month. Going forward, this should be Rs.22,000. Unless, of course, some emergency comes up or I divert some of this to a different investment. I have not moved or reallocated any funds. I should, but will be doing this sometime December or Jan’20.

Mutual Fund portfolio as of 30th November’19

Fund	Type	Total Invested	Value October’19	Invested in Nov’19	Value November’19	ROI Nov’19	Nov’19 profit	Total Profits
Franklin India Ultra Short Bond Fund	Debt	103813	103813	0	105530	9.6%	1717	1717
SBI Focused Equity Fund	Multi Cap	28336	26668	1668	29147	33.8%	811	811
Axis Midcap Fund	Mid Cap	26666	26666	0	27214	22.4%	548	548
Nippon India Small Cap	Small Cap	5900	3900	2000	6009	5.9%	109	109
L&T Midcap Fund	Mid Cap	4000	2124	2000	4132	15.6%	8	132
HDFC Small Cap Fund	Small Cap	4000	1984	2000	3891	-11.8%	-93	-109
L&T India Value Fund	Value	3332	1778	1666	3473	22.5%	29	141
DSP Midcap Fund	Mid Cap	2000	1080	1000	2093	22.6%	13	93
Nippon India Liquid Fund	Debt	1503	1503	0	1538	6.1%	35	35
Total		179550	169516	10334	181489	11.6%	3177	3477