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Kuvera Index funds - portfolio update

TLDR: Shifting from ETF to Index funds


The problem with most investors is the temptation to constantly do something. Something most investment gurus advice against. If you really don’t need to do anything, just do nothing. It sounds simple but our twitchy fingers do not listen. So here I am, tweaking things, hopefully for good reason.

I had previously posted my reason for moving from ETF to Index funds.

  1. Primarily because of the cost of transactions on the ETF side.

  2. Index funds also have much lower expense ratios that help boost returns.

  3. Liquidity concerns on the ETF, especially the ICICI mid cap select index

So I have adopted to do this via kuvera.in. I could have gone directly to the AMC and register to do it. But I found the UI and unified portfolio view from kuvera to be better suited for my needs.

I am doing small SIPs into 3 index funds to start with. (As of Nov 2019)

UTI NIFTY index fund - TER - 0.1 % - AUM - 1,581 Crores

UTI NIFTY next 50 index fund- TER - 0.27 % - AUM - 444 Crores

Motilal Oswal Mid cap 150 index fund - TER - 0.38 % - AUM - 21 Crores

It would cover the top 250 companies public listed in the Indian stock market between these 3 index funds. This is adequate level of diversification for almost all investing in the Indian market. This is what I would like to think as fool proof, long term SIP - SIP(DCA) it and forget it for the next 10 to 20 years.

No need to review, tweak or update this until retirement or your kids education or marriage or any other long term goal (greater than 7 years) that you are saving towards.

Why start so small? I feel that that the market is currently overheated and the run-up has no basis on fundamentals. So instead of stopping or reducing my overall monthly SIP, I have decided to tweak my equity to debt ratios.

I would continue to invest through kuvera.in via SIP into these index funds I have recommended earlier through the ups and downs in the market. I would also vary the monthly allocations based on adverse market movements instead of stopping any SIP or reducing the monthly investment amount.

Conclusion

Since the switch-over from ETF to index funds, I have not sold any of my existing ETF holdings, I will continue to keep them as-is. I hope to provide quarterly updates on the index fund investments from Kuvera to you my audience.

Happy Investing.

Title Photo by GotCredit