I have attended a session today on investment and the coach asked me isn't concentrating on one fund risky?
My answer was its dynamic PE and has less volatility than the market.
Came back to the desk and thought about it.
What are the risks?
1. If two funds Dyn PE invests underperforms I will take a beating.
2. According to recession data, the max drawdown I can have is 33% and I am ok with it.
3. The debt fund may not give 9% like previous years but I am ok with 7-8%.
4. I may not lose my money unless there is chaos in Indian markets and Franklin Templeton goes down under, even then the underlying assets are in India so if India grows fund grows.
It's still a valid point why not have another fund house to the equation?
Should I invest in index funds from different fund houses, even when I am planning to retire in 5 years?
My answer was its dynamic PE and has less volatility than the market.
Came back to the desk and thought about it.
What are the risks?
1. If two funds Dyn PE invests underperforms I will take a beating.
2. According to recession data, the max drawdown I can have is 33% and I am ok with it.
3. The debt fund may not give 9% like previous years but I am ok with 7-8%.
4. I may not lose my money unless there is chaos in Indian markets and Franklin Templeton goes down under, even then the underlying assets are in India so if India grows fund grows.
It's still a valid point why not have another fund house to the equation?
Should I invest in index funds from different fund houses, even when I am planning to retire in 5 years?
18-04-2021 This came true in 2020 Mar the debt fund lost 50% of NAV in a single day.
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