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Franklin India Dynamic P E Ratio Fund Of Funds

Investors may note that they will be bearing the recurring expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment

Expenses are high for this fund, is it worth keeping all my money in this fund? The total expense will be minimum of 2%.
Recent posts

The simple path to wealth

I have read The simple path to wealth book and for Americans it covers every thing but informative none the less for rest. My plan of having 25X in MF has flaw that it has 1.33 - .84 % as expense and I need to save for kids college fee, mother's health insurance and post work health insurance for self. I will get health cover as my wife never thinks about retirement, mother's insurance is something I have to look at. Hope my future company share match partly will cover Kids college fee, I will have to work for 5 years though.

December expenses

Spent 28439 this month.


FI date and graph

My FI date is Nov 2022 which is 4 years 11 months. December pushed it as my contribution is less and higher monthly expenses. I think January will also be high expense month but have to be tight with money.







Returns

Nifty 500 returned 37.2% for 2017, I had not received such returns and can not measure as well due to change in approach. In 2018 I should be able to measure returns with investments in just 3 funds. India is missing index funds big time.

Pay day for December

I have received a salary of 39,389 rupees post tax for the month of December. I should save 50% of post tax salary. My investments this month should be (39,389/2) = 19695. Out of which I move 5500 to Franklin India Taxshield and rest to Franklin India Dynamic P E Ratio Fund Of Funds (14195).

I have paid 2,750 insurance plus kid school fee into debt fund already, I will be left with 16944 to spend in the month of December. 

My PF(5,26,289) stands at as of today. Gratuity was settled too and post tax  I received 1,49,883 which was invested in dynamic pe fund already.

Concentrating in on fund house and one fund, isn't risky?

I have attended a session today on investment and the coach asked me isn't concentrating on one fund risky?

My answer was its dynamic PE and has less volatility than market.

Came back to desk and thought about it.

What are the risks?

1. If two funds dyn PE invests under performs I will take a beating.
2. According to recession data the max draw down I can have is 33% and I am ok with it.
3. The debt fund may not give 9% like previous years but I am ok with 7-8%.
4. I may not lose my money unless there is chaos in Indian markets and Franklin Templeton goes down under, even then the underlying asserts are in India so if India grows fund grows.

Its still a valid point why not have another fund house to equation?

Should I invest in index funds from different fund house, even when I am planning to retire in 5 years?

FI date and graph

My FI date has come down to Aug 2022 which is 4 years 9 months. Would like to thank madfientist for creating graph https://lab.madfientist.com/. December probably will not move or may push my FI date as my contributions will not be there due to change in job and higher monthly expenses. Hope to contribute from Jan salary.