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 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.
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|