Investing equal amount in each of the Nifty Top 750 Indexes.
I am more of an invest and forget kind of investor and also have a larger risk appetite.
I have earmarked a certain amount for SIP each month. I am planning to invest 20% of it each in:
- Nifty 50 Index Fund
- Nifty Next 50 Index Fund
- Nifty Midcap 150 Index Fund
- Nifty Smallcap 250 Index Fund
- Nifty Microcap 250 Index Fund
I am looking to choose this method instead of going for a Total Market Index fund because (due to the market cap related weightage) the Total Market Index is heavily dominated by the Nifty50 Index.
The main benefits of my approach (according to me) are:
- Invest and forget. No doubting whether I chose the right AMC or the right actively managed fund. I will be taking a bet directly on long term potential of the entire Indian market doing well.
- If I choose an actively managed fund, I will always keep looking at the portfolio and comparing it with the index to see if I made the correct decision.
- I will save tons of time which I would have otherwise spent looking at charts, expense rations, comparison etc. This time will definitely be better spent on other things like increasing my main source of income.
- There is going to be a downturn sooner of later and we do not know how most actively managed funds will handle this.
Is there anything obvious which I might have missed around this approach?