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Career Coach  |38 Answers  |Ask -

Workplace Expert - Answered on Feb 27, 2024

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Asked by Anonymous - Feb 23, 2024Hindi
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I failed UPSC thrice. I am 24 and jobless. My parents are apprehensive and want me to take up a job and start my career. But I want to try one more time. If I take up a job I won't be able to focus. Pls advice

Ans: It sounds like you're facing a challenging situation, and it's understandable that you're feeling conflicted. Here are some points to consider:

1. Evaluate your situation: Take some time to assess why you haven't succeeded in the UPSC exams so far. Is it a lack of preparation, exam strategy, or other factors? Identifying the reasons can help you address them effectively.

2. Discuss with your parents: Have an open and honest conversation with your parents about your aspirations and concerns. Explain why you want to give the UPSC exam another try and discuss any alternative plans you might have.

3. Consider a compromise: Explore the possibility of finding a job that allows for some flexibility in your schedule, or one that aligns with your long-term goals. This way, you can gain work experience while still pursuing your dream of clearing the UPSC exams.

4. Create a balanced plan: If you decide to continue preparing for the exams, make sure to create a structured study plan that allows you to dedicate sufficient time to both studying and earning a living. This might involve setting specific study hours each day or week.

5. Seek support: Consider seeking guidance from mentors, tutors, or coaching institutes to enhance your preparation for the UPSC exams. Additionally, joining study groups or online forums can provide you with valuable insights and motivation.

6. Take care of yourself: It's essential to prioritize your mental and physical well-being during this time. Make sure to incorporate regular breaks, exercise, and relaxation activities into your routine to avoid burnout.

Ultimately, the decision to continue pursuing the UPSC exams or to take up a job depends on your individual circumstances and priorities. Remember that setbacks are a natural part of any journey, and it's okay to reassess your goals and make adjustments along the way. Trust yourself and have confidence in your abilities to overcome challenges and achieve success, whichever path you choose.
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I have just recently completed my btech in Computer science engineering from a tier 3 engineering college in Kolkata. Being a tier 3 college, there weren't any decent on campus placements. Further, I always wanted to become an IFS( Indian Foreign Service) officer, so always wanted to sit for UPSC after finishing my graduation. But now that I have seriously started thinking about it, I am not sure what to do. I mean I want to pursue UPSC, there is no financial pressure from family, atleast not for the next 2 years but I feel like if I don't make it (since I have to consider the scenario that I may fail to crack the exam), I don't know whether I will be able to get a job after 2 years gap after graduation in IT sector or will I be able to pursue further studies such as MS from USA or MBA from tob b schools in India. I am feeling depressed and helpless as I am unable to decide what to do? Should I just start looking for a job right now or just prepare for UPSC and don't worry about those stuff right now. I would greatly appreciate your answers and views in this matter.
Ans: Soumik, You seem to be in a muddle. I suggest you go for career counselling from a professional who will charge you for it. Also remember that the fail rate in UPSC exams is high and if you want to pursue a career as an IFS officer you will have to work really hard to pass the various levels of exams. If you feel you have the tenacity and perseverance and are confident of your abilities, then go for it! If in doubt, stop and think, then take a concerted decision based on what you really feel and know about yourself.
I also suggest that you carry out your own SWOT analysis to get to know your capabilities and capacities to attain your goals.
Wish you the best!

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Krishna

Krishna Kumar  |266 Answers  |Ask -

Workplace Expert - Answered on Mar 24, 2024

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I have just recently completed my btech in Computer science engineering from a tier 3 engineering college in Kolkata. Being a tier 3 college, there weren't any decent on campus placements. Further, I always wanted to become an IFS( Indian Foreign Service) officer, so always wanted to sit for UPSC after finishing my graduation. But now that I have seriously started thinking about it, I am not sure what to do. I mean I want to pursue UPSC, there is no financial pressure from family, atleast not for the next 2 years but I feel like if I don't make it (since I have to consider the scenario that I may fail to crack the exam), I don't know whether I will be able to get a job after 2 years gap after graduation in IT sector or will I be able to pursue further studies such as MS from USA or MBA from tob b schools in India. I am feeling depressed and helpless as I am unable to decide what to do? Should I just start looking for a job right now or just prepare for UPSC and don't worry about those stuff right now. I would greatly appreciate your answers and views in this matter.
Ans: Dear Mr.Soumik

Cracking UPSC is not easy but it's worth the effort. Believe in yourself and put your heart and soul in it....suggest you watch the movie 12th fail.

Recently I hired a member in my team, he pursued UPSC for two years and was not successful...the preparation that he did for 2 years made him a different person and that's the reason I hired him

It is said that when we aim for the moon and if we don't get it we would still lmd on some star...

All the best.

..Read more

Career

Career Coach  |38 Answers  |Ask -

Workplace Expert - Answered on Apr 19, 2024

Asked by Anonymous - Apr 18, 2024Hindi
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Career
I failed in UPSC and NEET-UG two times. I am feeling very demoralised and depressed that I wasted my parents' money. What can I do to motivate myself and feel better?
Ans: Hey there,

Navigating setbacks in life is like sailing through stormy seas - challenging, but certainly not impossible. While it's natural to feel disheartened after experiencing setbacks in exams like UPSC and NEET-UG, remember that every storm eventually passes, leaving behind valuable lessons and opportunities for growth. Here are some compass points to help you navigate through this rough patch and reignite your motivation:

1. Embrace Failure as a Stepping Stone: Failure is not the end of the road; it's merely a detour on the journey to success. Instead of dwelling on your past attempts, view them as stepping stones towards your ultimate goal. Reflect on what went wrong, identify areas for improvement, and use these insights to chart a new course forward.

2. Reframe Your Perspective: It's easy to succumb to self-doubt and negative thoughts, but remember that setbacks are temporary setbacks, not reflections of your worth or capabilities. Reframe your perspective by focusing on your strengths, achievements, and the progress you've made thus far. You're not defined by your failures; you're defined by how you rise from them.

3. Set Realistic Goals: Break down your ultimate goal into smaller, manageable milestones. Set realistic and achievable targets that allow you to track your progress and celebrate small victories along the way. By focusing on incremental progress, you'll build momentum and regain confidence in your abilities.

4. Seek Support and Guidance: You're not alone in this journey. Lean on your support system - whether it's your family, friends, mentors, or counselors - for guidance and encouragement. Sharing your struggles with others can provide valuable perspectives, insights, and emotional support to help you navigate through tough times.

5. Explore Alternative Paths: Remember that success doesn't have a one-size-fits-all formula. If your previous attempts didn't yield the desired results, consider exploring alternative career paths or educational opportunities that align with your interests and strengths. Keep an open mind and be willing to adapt and pivot as needed.

6. Practice Self-Compassion: Be kind to yourself during this challenging time. Treat yourself with the same compassion and understanding that you would offer to a friend facing similar circumstances. Practice self-care activities that nourish your mind, body, and soul, whether it's pursuing hobbies, exercising, or practicing mindfulness.

7. Stay Persistent and Resilient: Remember that success often requires perseverance and resilience in the face of adversity. Stay committed to your goals, and don't let temporary setbacks derail your long-term aspirations. Keep moving forward with determination and unwavering belief in your ability to overcome challenges.

In the words of Winston Churchill, "Success is not final, failure is not fatal: It is the courage to continue that counts." So, muster up your courage, dust yourself off, and embark on this journey with renewed vigor and optimism. Your brightest days are yet to come!

Wishing you strength, resilience, and boundless success on your path ahead!

..Read more

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 26, 2024Hindi
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How to find stocks that give max return monthly with low/medium risk. Like monthly 20-50% return by cash trading.
Ans: It's natural to seek high returns with minimal risk, but it's essential to approach investing with a realistic mindset. Here are some insights:
• Avoid Quick Fixes: Be cautious of strategies promising guaranteed high returns with low risk. Such approaches often involve significant risks or are outright scams.
• Active Equity Funds: Consider investing in actively managed equity funds with a proven track record. These funds are managed by professional fund managers who actively research and select stocks to optimize returns while managing risk.
• Diversification: Spread your investments across different asset classes, sectors, and geographies to mitigate risk. Diversification can help reduce the impact of poor performance from any single investment.
• Patience and Discipline: Successful investing requires patience and discipline. Avoid the temptation to chase quick gains or make impulsive decisions based on short-term market fluctuations. Stick to your investment plan and stay focused on your long-term financial goals.
• Risk Management: Understand your risk tolerance and invest accordingly. High-return investments typically come with higher risk. Assess whether you're comfortable with the potential downside before committing funds.
• Research and Education: Invest time in learning about the stock market, fundamental and technical analysis, and risk management strategies. Knowledge empowers you to make informed investment decisions.
• Consult a Professional: Consider seeking advice from a Certified Financial Planner or investment advisor. They can provide personalized guidance based on your financial situation, risk tolerance, and investment objectives.
Remember, there's no guaranteed way to achieve consistently high returns with minimal risk, especially in the short term. Focus on building a diversified portfolio of quality investments, stay disciplined, and remain patient for the long-term rewards.

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hello sir I have invested 5000 SIP in quant small cap fund 5000 SIP Nippon small cap fund 10000 SIP HDFC Index fund S and P 10000 SIP UTI Nifty 50 index fund 10000 SIP Parag Parikh flexi cap fund All are for next 5 years as monthly SIPs Please help me to consider this portfolio all okay or have to change so that I could make good profit
Ans: Your portfolio looks diversified with exposure to small-cap, index, and flexi-cap funds. Here's a breakdown:
• Small-Cap Funds: These can offer high growth potential but come with higher risk due to volatility in small-cap stocks.
• Index Funds: They provide broad market exposure and are relatively low-cost but may limit potential returns compared to actively managed funds.
• Flexi-Cap Fund: Offers flexibility to invest across market caps, potentially providing a balanced approach to growth and stability.
Considering your investment horizon of five years, it's essential to review your portfolio periodically:
• Rebalance: Ensure your portfolio aligns with your risk tolerance and investment goals. Periodic rebalancing may be necessary to maintain desired asset allocation.
• Review Performance: Monitor the performance of each fund relative to its benchmark and peer group. Consider replacing underperforming funds with better alternatives.
• Keep an Eye on Fees: Look out for high expense ratios, as they can eat into your returns over time. Opt for funds with competitive fees.
• Stay Informed: Stay updated on market trends and economic indicators that may impact your investments. However, avoid making impulsive decisions based on short-term fluctuations.
Overall, your portfolio seems well-structured, but it's always wise to seek advice from a Certified Financial Planner for personalized guidance tailored to your financial objectives and risk tolerance. Remember, investing is a journey, and staying disciplined and patient is key to achieving long-term success. Keep up the good work!

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Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Is it good to invest in a shop in food court located inside a commercial building with office space in noida as a investment.also the builder is assuring fix rental incomw
Ans: Investing in a shop in a food court within a commercial building in Noida might seem tempting due to the assured rental income, but it's essential to consider the risks involved:

Lack of Regulation: The rental assurance provided by the builder may not be regulated by any governing authority. Thus, there's a risk that the builder might default on their promise.
Lack of Liquidity: Unlike stocks or mutual funds, real estate investments, especially in commercial properties, lack liquidity. It might be challenging to sell your shop quickly if needed.
Assurance Not Guaranteed: While the builder may assure fixed rental income, there's no guarantee that this assurance will hold in the long term. Economic downturns or changes in market conditions could affect rental yields.
However, if you're comfortable with these risks and believe in the potential of the location and the project, investing in a shop in a food court could offer long-term returns. Ensure thorough due diligence, including understanding the terms of the rental agreement, assessing the demand for commercial space in the area, and considering potential future developments that could impact the property's value.

It's always advisable to consult with a Certified Financial Planner or real estate expert before making any significant investment decisions. They can provide personalized advice tailored to your financial goals and risk tolerance. Remember, diversification is key to a well-rounded investment portfolio. Good luck!

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hi sir i am investing in SIP mode, 1 Nippon largecap 2 Icici multicap 3 absl frontline equity 4 miare mid and large cap 5 axis mid cap all 5 1.5 k each and Hdfc 1k each.. feo past 3-5 years... pls advise your view ..also want to add more 10k for 5-10year horizon in quant floxi and nifty 50 index fund pla advise bestbone in infex fund and its ok to add quant flexi fund 5k sip
Ans: It's great to see your commitment to SIP investing over the past few years. Let's discuss your current portfolio and future investment plans:
• Your SIP portfolio comprises a mix of large-cap, multi-cap, mid-cap, and hybrid funds, providing diversification across market segments.
• Nippon, ICICI, ABSL, Mirae, and Axis are reputable fund houses with strong track records, which is a plus for your portfolio.
• Adding HDFC funds adds further diversification, contributing to a well-rounded investment strategy.
Regarding your plan to add more funds:
• Investing an additional 10k for a 5-10 year horizon is a smart move, especially if you're aiming for long-term growth.
• Considering Quant flexi and Nifty 50 index funds is a good idea. Index funds offer low-cost exposure to the broader market, which can complement actively managed funds in your portfolio.
A few considerations:
• Ensure that the new additions align with your risk tolerance and investment goals.
• Regularly review your portfolio to ensure it remains diversified and aligned with your financial objectives.
• Keep an eye on the performance of each fund and consider making adjustments if needed.
Overall, your investment approach seems well-structured, and adding more funds for long-term growth is a step in the right direction. Remember, investing is a journey, and staying committed to your financial goals will yield fruitful results over time. If you have any further questions or need assistance, feel free to reach out. Happy investing!

...Read more

Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hi Sir, I am investing in SIP since last 5years and presently below are the SIP's. 1. PARAG PARIKH FLEXI CAP FUND - GROWTH - 20000, 2. SBI FOCUSED EQUITY FUND REGULAR GROWTH -5000 ,3. Mirae Asset Emerging Bluechip Fund - 20000 , 4. Canara Robeco Bluechip Equity Fun - 5000 , 5. Mirae Asset Large Cap - 10000 6. AXIS MIDCAP FUND - 10000 . Apart from SIP , PPF and SSY - 1.5lakh /year each With the SIP's any modification required please suggest. and my goal plan is as my daughter aged 5years now for her Education ,marriage and self retirements after 20 years and a house of 50lakhs at 2030. can it be ok . give more idea on this financial planning base on my goal.
Ans: It's fantastic to see your dedication to investing and planning for your future and your daughter's. Let's dive into your current SIP portfolio and goal planning:
• Firstly, kudos on maintaining a disciplined approach to SIP investing over the past five years. Consistency is key!
• Your SIP portfolio consists of a mix of flexi-cap, large-cap, mid-cap, and focused equity funds, providing diversification across market segments.
• Additionally, investing in PPF and SSY reflects your commitment to long-term savings and securing your daughter's future.
Now, let's focus on your goals:
• Education & Marriage: Allocating funds for your daughter's education and marriage is crucial. Consider estimating the future expenses for these goals and adjusting your investment allocations accordingly.
• Retirement: Planning for your retirement after 20 years is wise. Ensure your investment portfolio aligns with your retirement goals and risk tolerance. Regularly review and adjust your investments as needed.
• Home Purchase: Saving for a house by 2030 is a significant goal. Factor in inflation and property price trends while estimating the required corpus. You may need to increase your savings rate or explore additional investment avenues.
Here are some additional pointers:
• Regular Review: Periodically review your investment portfolio to ensure it remains aligned with your goals and risk tolerance.
• Emergency Fund: Build an emergency fund equivalent to 6-12 months of expenses to handle unforeseen financial challenges.
• Professional Advice: Consider consulting with a Certified Financial Planner to fine-tune your financial plan and receive personalized advice tailored to your goals and circumstances.
Remember, financial planning is a dynamic process, and adjustments may be needed along the way. Keep up the good work, and if you have any further questions or need assistance, feel free to reach out. You're on the right track to financial success!

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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hello sir, I'm 27 , it's been 3 months i have started my government job, my salary is 30k and right now I'm living with my parents so don't have much expense and can invest upto 8-10k per month , right now i have 1.) 2k in Aditya Birla Sun life PSU equity fund direct growth 2.) 2k in Quant Infrastructure Fund direct growth 3.) 2k in Invesco India PSU Equity Fund direct growth 4.) 1k in Motilal Oswal S&P BSE Enhanced Value Index Fund direct growth and 5.) 1k in HDFC infrastructure direct Plan Growth so can you please tell me should i continue this or change it. I have also the latest sgb series 1 share.
Ans: Hey there! It's awesome to hear that you've started your government job and are already thinking about investing for your future. Here's a breakdown of your current situation:
• You're 27 years old, just three months into your job, with a monthly salary of 30k.
• Living with your parents means lower expenses and more room to save and invest, which is fantastic!
• Currently, you're investing a total of 8-10k per month across various mutual funds.
• Additionally, you've invested in the latest Sovereign Gold Bond (SGB) series, which is a smart move.
It's essential to review your investment strategy periodically to ensure it aligns with your financial goals and risk tolerance. Here are a few points to consider:
• Diversification: It's great that you're investing across different mutual funds and also holding SGBs. Diversification helps spread risk.
• Performance: Keep an eye on the performance of your investments. If any fund consistently underperforms or doesn't align with your goals, you may consider switching.
• Risk: Assess the risk level of each fund and make sure it matches your comfort level. Some funds may be more volatile than others.
As a Certified Financial Planner, I recommend reviewing your portfolio with a professional to get personalized advice based on your financial goals and circumstances. They can help you make informed decisions and optimize your investments for the long term.
Remember, investing is a journey, and it's essential to stay disciplined and patient. Keep up the good work, and if you ever have any questions or need further guidance, feel free to reach out. You're on the right track!

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hi Dev, I hope you're doing well. I have a question that I think you might be able to assist me with. I'm 52 years old and currently need to plan for my children's education expenses. My elder child's education is ongoing and requires 10 lakhs, while my younger child will require 30 lakhs in two years. Here's a breakdown of my investments: Stocks, Mutual Funds, and Portfolio Management Services amount to 2.6 crores, and I have 40 lakhs in my Provident Fund. I also receive a monthly rent of 2 lakhs. If I estimate my monthly expenses at 1 lakh, do you think I can retire comfortably with this corpus? In the worst-case scenario, I can liquidate one of my properties, which could yield 3 crores. Ideally, I would like to retire without touching my real estate investments. My life expectancy is 85 years. Additionally, I have medical insurance coverage of 12 lakhs plus a top-up of 90 lakhs. I plan to travel twice a year during retirement, with an estimated expenditure of 1.5-2 lakhs per year. I would appreciate your insights on this matter. Thank you, Geo
Ans: Let's delve into your situation and see how we can address your concerns regarding your children's education expenses and retirement planning.

Firstly, it's commendable that you're proactively planning for your children's education. With the elder child's education requiring 10 lakhs and the younger child's needing 30 lakhs in two years, it's crucial to ensure you have sufficient funds set aside for these expenses.

You mentioned having investments in stocks, mutual funds, and Portfolio Management Services amounting to 2.6 crores, along with 40 lakhs in your Provident Fund. Additionally, you receive a monthly rent of 2 lakhs, which significantly contributes to your income.

Considering your monthly expenses are estimated at 1 lakh, and you have a potential fallback option of liquidating one of your properties, which could yield 3 crores, it seems you have a robust financial foundation.

With your life expectancy being 85 years and adequate medical insurance coverage, coupled with your retirement plans of traveling twice a year with estimated expenditures, you seem well-prepared for retirement.

However, it's essential to ensure that your investment portfolio is diversified and aligned with your risk tolerance and long-term goals. Regularly review your investments and make adjustments as necessary to stay on track.

Overall, it appears that you're in a good position to retire comfortably and fulfill your financial goals. If you have any further questions or need assistance in fine-tuning your financial plan, feel free to reach out. Wishing you all the best!

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 23, 2024Hindi
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Good evening sir ,I have a 5 lakh amount fix deposit. Please suggest me, I will have double profit for five years and some money will come into my account monthly. Can I invest in mutual funds?
Ans: Good evening! It's great to hear about your interest in exploring investment options beyond fixed deposits. Let's discuss your goals and preferences:
• With a fixed deposit of 5 lakhs, you're seeking to double your profit over five years while also receiving monthly income.
• Mutual funds can offer the potential for higher returns compared to fixed deposits, but they also come with varying levels of risk.
Considering your goals, here's a suggestion:
• You may consider investing a portion of your fixed deposit amount into mutual funds, particularly in equity-oriented funds for long-term growth potential.
• Choose funds that align with your risk tolerance and investment horizon. For monthly income, you could explore dividend-paying funds or opt for a systematic withdrawal plan (SWP) to receive regular payouts.
• However, it's essential to understand that mutual funds carry market risk, and returns are not guaranteed. Ensure you're comfortable with the potential fluctuations in value.
Before making any investment decisions, I recommend consulting with a Certified Financial Planner (CFP) who can assess your financial situation comprehensively and provide personalized advice tailored to your needs and goals.
Remember, diversification and a long-term perspective are key to building wealth while managing risk. If you have any further questions or need assistance, feel free to ask.

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 26, 2024Hindi
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Hello Sir, please review & advise on my mutual fund portfolio. SIP of 5000 each in UTI Nifty 50 index fund, Parag Parikh flexicap, Quant flexi cap & 3000 each in ICICI Midcap 150 index fund & Kotak large & midcap fund. All Started since 4 months, current age 42 & can do SIP for 2-3 years & plan to keep the accumulated amount as it is for next 5 years. I have some investments in equity shares(25%), SGB(25%) & FD's(50%) as well. Expecting to retire in next 6-7 years. Thanks
Ans: It's great to see your interest in reviewing and optimizing your mutual fund portfolio. Let's dive into it:
• UTI Nifty 50 Index Fund:
• Parag Parikh Flexi Cap Fund:
• Quant Flexi Cap Fund:
• ICICI Midcap 150 Index Fund:
• Kotak Large & Midcap Fund:
Your portfolio seems well-diversified, but considering your preference for actively managed funds over index funds, here are some suggestions:
• For the large-cap segment, you could consider actively managed funds with a strong track record of outperformance.
• In the mid-cap segment, look for funds managed by experienced fund managers known for their stock-picking skills and ability to navigate market cycles.
• For flexi-cap exposure, consider funds that have the flexibility to invest across market segments based on prevailing market conditions.
While index funds offer low-cost exposure to broad market indices, actively managed funds have the potential to generate alpha and outperform benchmark indices over the long term. Given your investment horizon and retirement goals, actively managed funds may align better with your objectives.
As you approach retirement in the next 6-7 years, continue to monitor your investments and consider consulting with a Certified Financial Planner (CFP) to ensure your portfolio is optimized for your retirement goals.
Remember, investing is a journey, and staying disciplined and focused on your long-term objectives will help you achieve financial success. Keep up the good work, and if you have any further questions or need additional guidance, feel free to reach out. Cheers!

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Ramalingam

Ramalingam Kalirajan  |1638 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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which investments can assure 12-15% return per annum in next 5 years period. Are mutual funds good investment or the PMS servcies
Ans: Mutual funds are indeed a viable option for achieving returns of 12-15% per annum over the next 5 years. Here's why:
Mutual Funds:
• Diversification: Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities, reducing risk.
• Professional Management: Experienced fund managers make investment decisions based on thorough research and analysis, aiming to maximize returns.
• Liquidity: Mutual fund units can be easily bought or sold, providing liquidity to investors when needed.
• Transparency: Mutual funds provide regular updates on portfolio holdings and performance, ensuring transparency for investors.
• Regulatory Oversight: Mutual funds are regulated by SEBI (Securities and Exchange Board of India), providing investor protection and oversight.
Disadvantages of Portfolio Management Services (PMS):
• High Minimum Investment: PMS typically require a high minimum investment, often in lakhs or crores, making them inaccessible to many investors.
• High Fees: PMS services charge higher fees compared to mutual funds, including management fees, performance fees, and other expenses, which can significantly erode returns.
• Less Diversification: PMS portfolios may be concentrated in a few stocks or sectors, increasing risk and volatility compared to diversified mutual funds.
• Limited Transparency: PMS may provide limited transparency on portfolio holdings and transactions, making it difficult for investors to assess risk and performance.
• Tax Inefficiency: PMS may have tax implications such as higher turnover leading to increased tax liabilities, reducing net returns for investors.
Why Choose Mutual Funds Over PMS:
• Accessibility: Mutual funds have lower minimum investment requirements, allowing retail investors to participate in wealth creation.
• Cost-Effectiveness: Mutual funds offer cost-effective investment options with lower fees compared to PMS, ensuring better returns for investors.
• Diversification: Mutual funds provide diversification across a wide range of securities, reducing risk and enhancing long-term returns.
• Regulatory Protection: Mutual funds are subject to regulatory oversight by SEBI, providing investor protection and ensuring compliance with regulations.
In conclusion, while mutual funds offer a cost-effective and diversified investment option with the potential to achieve returns of 12-15% per annum over the next 5 years, PMS services come with higher costs, limited accessibility, and increased risk. Therefore, investors may be better off considering mutual funds as their preferred investment vehicle.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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