A few days back, I had a great discussion with 
“Let the MF Grow. Don’t Mess With It.”
Ok, to give you the context, I had SIPs running in 2 Largecap growth, 1 small cap momentum, 1mid cap and 1 defence sector. All this I started at the beginning of 2025. I picked the MFs based on the past performance of 3Yrs. Which, at that time, were handsome and above or around 20%. But the actual returns at the end of the year were barely 2%. This disheartened me, and I even planned on exiting the MFs.
MFs are slow and need time.
Just green days on the market are not enough for the MFs to generate the return. While it's true that MFs' returns are based on the Market. But the truth is, it's diversified across many stocks, which is to minimise the losses and the market regulations. Otherwise, the Mutual Fund houses would play pump and dump all day long. So, with the rules in place, a fund house invests in various assets or various companies from different sectors. The assets include debt, Government Bonds, Corporate Bonds, and, of course, equity. In other words, the fund in itself is a well-balanced portfolio.
(Screenshot from my Trading Note)
For example, ICICI Prudential Large Cap Fund Growth, this particular Fund has invested in 55+ LargeCap companies and 10 Corporate Bonds, and the Nifty50 Index. So even when the LargeCap companies are hit, the Corporate Bonds and the Index act as shock absorbers. And keeps your investment from getting wiped out.
(Screenshot from my Trading Note)
Now, one may argue that if the MFs are investing in the stocks, why can't we directly buy them and avoid the MF fees? Let's do that analysis too.
On first glance, MF looks like a terrible choice; we are losing out on a good 6 or 7% income. However, the key point is that nobody can predict where the market is heading. In the case of the HFDC for the mentioned profit, one had to stay in the game and invest INR 2,500 in the funds every month, even when the Prices and the investment value dropped by 22%. From INR 800 in Jan 23 to INR 623 in Mar 23. 22% drawback is no joke. And one would lose sleep and peace.
[AI Generated]
And that is what I consider the biggest selling point of the Mutual Funds. You dont have to be actively monitoring the market, I mean, you do, but it's not like you have to be getting up daily and looking at charts for hrs. The point of MF is that you are outsourcing the task of hunting the stocks to a FundManager who is trained to handle money. A guy who can spot and trade the market as it goes. A guy who is not emotionally invested like us and trained to follow a system.
And in my case, while my MF made a return of 2% it was because of the shift in the market conditions. The Bull run kind of ended along with the 2024 Lok Sabha elections, and ever since then, it has gone into corrections. If I were to start the investment directly in some of the strong and market leaders, large-cap players, I would have lost instead of the gains.
(Screenshot from Trading View)
The point is, if you want to win the game, you have to stay in the game.
Hi
And I injured my right shoulder. That means, mouse clicks are ok, dumbbells are no no.
Currently going to physiotherapy, Will share more about this misadventure later. While I do want to take some days off to chill and cry in a corner. I think the best way to heal is to read, learn and research. So I will try to be back with some more learning materials on finances. Till then, take care.
A big thank you to