Why do you offer only 10 mutual funds?
From a business point of view, it makes a lot of sense for us to have all the mutual funds made available to you. If you don’t invest in our recommended portfolio, we can still generate revenue through commissions when you invest in your chosen funds. But we decided to give up that option because we care about how your investments are doing.
At Scripbox, we believe in a simplified investment approach. We strive to give you an automated and simplified way to invest. Given too many choices, the chances of you making the wrong investment choices is very high. Instead of trying to make more money, we decided to take the longer route and help you grow your money by limiting choice, thereby reducing your margin for error.
With a curated set of limited funds, you can:
- Start investing in less than 10 minutes: By giving you only 10 pre-selected funds, we eliminate two common problems investors face: which and how many mutual funds to invest in. You don’t have to spend days researching the best funds. In less than 10 minutes, you can set up your account and schedule your investments.
- Achieve the right amount of diversification: One of the main advantage of mutual funds is that for a small amount of money, you can achieve diversification. However, one common myth is that the more mutual funds you invest in, the better diversified your portfolio. Based on our extensive analysis, we have found out that having more than 4 funds in your portfolio, for a particular asset class e.g. equity, does not give you any additional benefit of diversification. Instead of giving you the false image of highly-diversified portfolio, we decided to give you the best funds every year – 4 equity, 3 debt, 2 tax-saving and 1 emergency fund.
- Manage your portfolio size: Managing the 10 best funds is far easier and efficient over managing 20 average funds. You can save the extra time and effort you would otherwise spend on fund management.
This curated-set-of-funds approach is best suited for people who:
- Want to ensure that they have the best funds in their portfolio every year
- Believe in automating their investments and not micro managing them every day (set-it-and-forget-it approach)
- Think long-term when it comes to investments
- Believe that the quality of funds in your portfolio matter and not the quantity
This approach not suited for people who are very advanced investors and prefer to make buy and sell calls based on market conditions (also referred to as timing the market). While it’s good to have a small number of funds, it’s equally important that you always have the right funds. That’s why Scripbox does an annual review of all mutual funds and prompts you for a portfolio change if required. This ensures that you have the best-performing funds every year.