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Hey Fishes
Can anyone share Mutual Fund schemes in their Portfolio?
I am a newbie and planning to start investing via SIP's in MF ( Around 4-5 SIP's of 10k each)
Thanks in advance.
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So the target date funds from vanguard have a 0.15% all-in fee.
If you look at the holdings you can build the same with a mix of VTI (0.03%, VXUS (0.08%) and some from BND ( 0.035%).
The small difference between the two would be what you’d save. If you are just getting started it’s negligible and once you hit 100K holdings might be worth optimizing a little.
Overall, vanguard products are already very low fee products so you can’t really go wrong with them.
Personal allocation.
You can buy bonds when you’re 45. Meanwhile, the target funds keep a portion of the portfolio in cash which isn’t great, and can be not aggressive enough for your twenties. I’d go with VTI, or SPY and whatever the vanguard russell5000 index is
Coach
100% agree. They are convenient but they allocate way to conservatively in bonds for my liking.
Roll your own. You can look at the mix of a target date fund and match that pretty easily if you want. With 2 major advantages:
1) lower fees as noted above
2) if you decide to change your strategy later - eg shift the mix, time the recognition of some capital gains or losses - you have more flexibility
Also if you are trying to automatically rebalance to a given target allocation as you make recurring investments, some brokers have tools to enable that. M1 Finance is the one I use.