The portfolio called ZOO!
Background Today I came across a portfolio which I named as ZOO!! A friend of mine based out of South Gujarat town, told me to study his 15 years old portfolio managed by an uncle. He is currently doing monthly SIP of Rs 1,10,000 and current valuation of portfolio is more than Rs 1 Crore. While I was analysing I found that total of 28 different mutual fund schemes which was a shock for me. So the average SIP per scheme is approx. Rs 4000. The portfolio has multiple flexi cap, multiple small cap, multiple mid cap funds and few sectorial funds. This is what I call a ZOO of schemes portfolio! How not to make a ZOO?: Actually, in markets there are 2-3 investing styles - value, growth & momentum. Value style: Value investing can be defined as buying stocks trading at a low valuation compared to an estimate of intrinsic value. Growth & Momentum style: Growth investing can be defined as buying highly valued stocks on the expectation that their valuations will continue impr...