December 18, 2012 12:57 am
Is it OK to go only with 1 fund (lets say QLTEF) for retirement planning?
even i am also investing only in qltef after a few years of so called diversification among large cap, multi cap and small cap funds :). I am on the look out for any fund management changes or behavior changes in quantum amc and will take appropriate action. qltef seems to be in tune with my requirements
dear Arshad diversification is simple financial common sense recommended by all experts and experienced investors and this too requires active management. The idea is to strike a balance between risk and return. You can find 100s of articles in support of this. While I disagree with Ramesh please don’t jump to any conclusions based on mine or any one elses opinions.
The idea of a response (contrarian views incl) in a forum is to provide a starting point to start learning. Nothing more. If the investor doesn’t make the effort to learn and searches for easy answers in a forum they are taking a big risk and creating more problems.
Ok..thanks freefincal & Ramesh..so 1 is for it and 1 is against it..based on your replies can we safely conclude, if you are willing to put hard work behind your fund selection like understanding the idea behind selecting it, its fundamentals, fund manager style etc etc you can go ahead and chose 1 fund provided you do periodic monitoring (as suggested by good friend Ramesh) AND if you dont want to do all this hard work you better diversify as suggested by freefincal..
Yes, it is ok to have a single fund for retirement purposes.
1. You have a basic idea why you have selected that particular fund.
2. And, that fund continues to work according to those basic ideas.
3. And, if it the underlying ideas of the fund change, you know to get into another fund of similar idea (and an idea you understand) and to actually change over.
4. And, you are not fazed by the noise of media about which fund is the best, etc. Here, media is tv and forums and blogs (even this one).
If you have such a clarity of mind, then it is a very good idea to have a single fund.
No. you would need a spread. first among equity debt and little bit of gold if you prefer.
Then you have at least 1 large cap fund as core equity for downside protection and a satellite mid and small cap to boost returns.
A single large cap fund may not be enough to give good returns in the long run.
Never put your eggs in one basket.
fates of amcs, fund managers can change just like that
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