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Ashwini

Ashwini Dasgupta  |87 Answers  |Ask -

Personality Development Expert, Career Coach - Answered on Jul 17, 2023

Ashwini Dasgupta is a personality development coach and a neuro-linguistic programming trainer.
She has 15 years of experience training corporate professionals and has worked at Amazon, JP Morgan, Nomura and Satyam among others.
As a career coach, Ashwini specialises in helping growth-minded IT corporate managers develop their self-worth and create the right mindset so that they can achieve their career goals.
Besides corporate training, she offers personal consultations as well.
Ashwini holds a master’s degree in human resources from the Narsee Monjee Institute of Management Studies, Mumbai, and is a certified NLP trainer from the National Federation of NeuroLinguistic Programming, USA.
She has completed her soft skills training and image consultancy course from the Image Consulting Business Institute, Mumbai
Ashwini is also a PoSH trainer, certified by the Society for Human Resource Management.... more
sunil Question by sunil on Jul 03, 2023Hindi
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I am having more than 22+ experience but not able to get the job, my name is sunil r nair, i am working as a software delivery head, with nothing pay like money, so what should i do to get job with good salary.

Ans: Hi Sunil,

Thank you for writing in.

Few tips to get started.

Self-Assessment: Identify your skills, interests, and strengths. It's been 22 years so by far you would have enough clarity what are your strengths and area of interests. We often tend to ignore and take it for granted due to our vast experience. Hence recommendation is to revisit your own strengths and interests.

Polish Your Resume and Cover Letter: Craft a well-written resume and cover letter that highlight your achievements, skills, and experiences. Tailor them to each job application to showcase your suitability for the role. Customize your resume as per the jobs.

Networking: Build a professional network by attending industry events, job fairs, and connecting with people on social media platforms like LinkedIn. Many jobs are found through referrals and personal connections.

Online Presence: Create a strong online presence through platforms like LinkedIn and professional portfolios. Showcase your expertise and share valuable content related to your field.

Job Search Strategies: Utilize various job search platforms, such as online job boards, company websites, and recruitment agencies. Be consistent and diligent in your job search efforts.

Prepare for Interviews: Practice common interview questions and be ready to articulate your skills and experiences confidently. Research the company and the role to demonstrate your interest and knowledge.

Focus on Soft Skills: Apart from technical skills, employers value soft skills such as communication, problem-solving, teamwork, and adaptability. Work on developing and showcasing these skills in interviews and on the job.

Continuous Learning: Stay updated with industry trends and advancements. Participate in workshops, webinars, and seminars to keep improving your skills and knowledge.

Professional Attitude: Demonstrate a positive and professional attitude during your job search and in interactions with potential employers. Be punctual, courteous, and responsive in your communications.

Follow Up: After interviews or submitting applications, follow up with a thank-you email or letter. It shows your interest and appreciation for the opportunity.

Be Open-Minded: Be flexible and open to exploring different job opportunities, especially if they align with your long-term career goals.

As you have been in the industry for 22 + years look at your own networks who could refer and guide you for the right opportunities. Importantly trust yourself and your abilities. Job Search requires patience. You will get there soon.

Hope this helps. All the best.

To Your Success. Be You. Be Confident.
Ashwini Dasgupta
Author of Confidence Decoded. Is it a Skill or Attitude?
Career

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Abhishek

Abhishek Shah  | Answer  |Ask -

HR Expert - Answered on Jul 04, 2023

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hi Abhishek , i am having 22+ year experience and working as a software delivery head, but salary is like nothing, so what is to do to get good salary job, even i have a good knowledge also, but not able to get the job, and due to this my marriage is also not happening, i got divorce in 2007, but since that i am not able to do the 2nd marriage, i am trying and not able to get the 2nd marriage, so can you please guide please.
Ans: Hello Sunil,

I understand that you're experiencing difficulties in finding a job with a good salary despite having over 22 years of experience as a software delivery head. I can provide you with some suggestions that may help you in your job search and personal life:

Update your resume: Make sure your resume highlights your extensive experience, achievements, and skills. Tailor it to each job application, emphasizing relevant accomplishments.

Networking: Connect with professionals in your industry through networking events, online platforms, and professional associations. Building relationships and seeking referrals can increase your chances of finding job opportunities.

Job search platforms: Utilize popular job search platforms and websites specific to your industry. Regularly check these platforms for new job openings and apply to positions that match your skills and experience.

Stay updated: Keep yourself updated with the latest industry trends, technologies, and certifications. Attend conferences, workshops, and webinars to enhance your knowledge and stay competitive in the job market.

Polish your interviewing skills: Practice common interview questions and prepare your responses. Highlight your achievements and how your skills align with the requirements of the job you're applying for.

Consider contract work or consulting: Explore opportunities for contract work or consulting gigs, as they often offer higher rates and can lead to permanent positions or other opportunities.

Professional development: Identify any gaps in your skills and consider taking courses or certifications to update your knowledge. This demonstrates your commitment to professional growth and can make you more marketable.

Regarding your personal life and desire for a second marriage, it's important to prioritize your emotional well-being and self-care. Here are a few suggestions:

Reflect and heal: Take time to reflect on your past relationship and the reasons for the divorce. Seek closure and consider therapy or counseling if needed to heal and move forward.

Focus on personal growth: Engage in activities that bring you joy, pursue hobbies, and invest in self-improvement. Cultivate your interests and passions, which can make you more confident and attractive to potential partners.

Expand your social circle: Participate in social activities, join clubs or groups related to your interests, and attend events where you can meet new people. Expanding your social circle increases the likelihood of meeting someone compatible.

Online dating: Consider using online dating platforms to connect with potential partners. Be honest about your intentions and take the time to get to know people before committing to a serious relationship.

Seek professional help if needed: If you're struggling emotionally or finding it challenging to move forward, consider seeking guidance from a therapist or relationship counselor. They can provide support and assist you in navigating your personal journey.

Remember, finding a job with a good salary and a fulfilling personal life takes time and perseverance. Stay positive, believe in your abilities, and keep working towards your goals.

Regards,
Abhishek Shah

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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sbi small cap direct growth 15 year return tell me sir ? and if i invest 15k month sip then how many year create 1 cr and more that ?
Ans: Investing in small-cap funds can offer high returns over the long term. However, they come with higher volatility and risks. Let’s address your question about achieving Rs 1 crore through a Rs 15,000 SIP and the performance of small-cap funds.

Historical Returns and Small-Cap Funds
Small-cap funds have historically delivered returns ranging from 12% to 15% annually over 10-15 years.

These funds perform well during bullish market cycles but may underperform during downturns.

Always consider the long-term horizon to average out market volatility and benefit from compounding.

Time to Achieve Rs 1 Crore with Rs 15,000 SIP
At an assumed return of 12%, it takes 19 years to reach Rs 1 crore.

At an assumed return of 15%, it takes 15 years to reach Rs 1 crore.

Staying disciplined and investing consistently is critical to achieving your financial goals.

Disadvantages of Direct Funds
Direct funds require market expertise, time, and effort for continuous tracking.

Many investors face challenges in monitoring performance and making timely decisions.

Investing through a Certified Financial Planner ensures better fund selection and portfolio optimisation.

Regular funds provide personalised guidance, helping maximise your returns efficiently.

Importance of Small-Cap Funds in Your Portfolio
Small-cap funds are ideal for long-term investors looking for aggressive growth.

These funds can deliver substantial wealth but carry higher risk compared to large- and mid-cap funds.

Balancing small-cap funds with other categories diversifies risk and improves stability.

Actively Managed Funds vs. Index Funds
Actively managed funds leverage fund managers' expertise to identify growth opportunities.

Small-cap segments often outperform benchmarks through active management due to inefficiencies in the market.

Index funds, in comparison, are passive and miss out on stock-specific opportunities.

Actively managed funds ensure dynamic adjustments based on market conditions, unlike index funds.

Monitoring Your Investment
Regular reviews help track your SIP’s progress toward Rs 1 crore.

Rebalancing your portfolio periodically maintains an ideal asset allocation.

Seek professional guidance for optimising returns while managing risks.

Taxation for Small-Cap Funds
Long-term capital gains (LTCG) over Rs 1.25 lakh are taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20% for equity mutual funds.

Consider these taxes while calculating the net growth of your portfolio.

Finally
A Rs 15,000 SIP in small-cap funds can help you achieve Rs 1 crore in 15 years at 15%.

Focus on long-term discipline and diversify your portfolio for consistent growth.

Prefer actively managed funds for small-cap investments to capitalise on professional expertise.

Stay committed to your financial plan while regularly reviewing and rebalancing your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Dear Sir, I am investing 40000/- per month since 2 years my Goal is to create 2 Cr till i reach 60. I am 45 now. My Investment HDFC Flexi, Parag Flexi, Nippon small cap, SBI large & Mid cap, Axis Blue chip, HDFC mid-cap oppourtunites, kotak emerging, Nippon India multi-cap fund, HDFC pharma, HSBC value fund. Pls advise. Thank You
Ans: You are investing Rs. 40,000 per month across various mutual funds. This disciplined approach is commendable. At 45, your goal to accumulate Rs. 2 crore by 60 is achievable. Let’s evaluate your portfolio and optimise it to align with your goal.

Strengths of Your Investments
Diversification Across Market Caps: Your portfolio includes small-cap, large-cap, and multi-cap funds.
Sectoral Exposure: The inclusion of a pharma fund offers specific growth potential.
Blend of Strategies: Value and growth strategies are present, providing balance.
Consistency: A monthly SIP for two years reflects financial discipline.
Areas That Need Improvement
1. Overlapping Funds
Many funds in your portfolio have similar objectives.
This results in unnecessary duplication and reduces efficiency.
2. Sectoral Overexposure
The pharma fund increases sector-specific risks.
Sectoral funds should be a minor part of a balanced portfolio.
3. Lack of Focus on Goal Alignment
The portfolio lacks a clear connection to your Rs. 2 crore goal.
Optimising fund selection is necessary to stay on track.
4. Limited Allocation to Large-Cap Funds
Large-cap funds provide stability and consistent growth.
Your current allocation to large-caps is inadequate.
5. Tax-Efficiency Awareness
New tax rules for mutual funds need consideration.
Restructuring may help minimise tax liabilities in the future.
Recommendations for Portfolio Optimisation
1. Streamline Your Portfolio
Reduce overlapping funds to improve returns.
Retain 5-7 funds that cover all market caps and investment styles.
2. Increase Focus on Large-Cap Funds
Large-cap funds offer lower volatility and steady growth.
Increase allocation to ensure a balanced portfolio.
3. Minimise Sectoral Funds
Limit sectoral funds to 5-10% of your portfolio.
Diversify across sectors instead of focusing on one.
4. Add a Balanced or Hybrid Fund
Hybrid funds provide stability during market downturns.
Consider allocating a portion of your investment here.
5. Target Your Rs. 2 Crore Goal
Increase SIP contributions if possible.
Factor in inflation to ensure the corpus retains its value.
6. Review Your Portfolio Regularly
Monitor fund performance every 6-12 months.
Replace underperforming funds with guidance from a Certified Financial Planner.
7. Opt for Regular Funds Through a CFP
Regular funds offer professional advice and support.
This helps in managing your portfolio effectively.
Key Insights on Direct Funds and Actively Managed Funds
Disadvantages of Direct Funds:

Requires extensive market knowledge.
Lack of professional guidance increases risk.
Time-intensive for monitoring and decision-making.
Benefits of Regular Funds via CFP:

Get expert advice for fund selection and rebalancing.
Avoid emotional investment decisions.
Align investments with financial goals.
Actively Managed Funds vs Index Funds:

Actively managed funds can outperform benchmarks over the long term.
Fund managers adjust portfolios for changing market conditions.
Index funds lack flexibility and may deliver lower returns.
Additional Steps to Strengthen Your Finances
1. Emergency Fund
Ensure 6-12 months’ expenses are saved in liquid funds.
This provides a financial cushion during emergencies.
2. Adequate Insurance Coverage
Have term insurance with Rs. 1 crore coverage.
Maintain health insurance for yourself and your family with Rs. 20 lakh coverage.
3. Plan for Post-Retirement Income
Invest in balanced funds or SWP for steady income post-retirement.
Avoid products with low returns like annuities.
4. Tax Efficiency
Keep ELSS funds for tax-saving under Section 80C.
Review fund taxation under the new capital gains rules.
5. Focus on Goal-Based Investing
Define clear financial goals for retirement and other needs.
Allocate investments to each goal for better clarity and planning.
Final Insights
Your current investment strategy shows great discipline. However, reducing overlapping funds and sectoral overexposure will optimise returns. Adding large-cap and hybrid funds will balance growth and stability. Increase your SIP or invest surplus funds to meet your Rs. 2 crore target comfortably. Seek professional advice to align your portfolio with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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I am invested in Quant small cap MF for 4 months now and since then I sm experiencing negative returns. should I stay invested or switch? If stay invested, then advise approx time to invest patiently in this fund?
Ans: Small cap funds invest in emerging companies with high growth potential.
These funds are volatile, with sharp short-term ups and downs.
They require patience as they perform well over long periods.
Evaluating the Current Situation

A four-month period is too short to judge a small cap fund's performance.
Small cap funds need at least 5–7 years to show consistent results.
Market cycles often affect small cap funds more than other categories.
Negative returns over a short term are normal for this category.
Market Volatility and Fund Performance

Recent market fluctuations may impact small cap returns temporarily.
Small cap funds perform better during market recovery or growth phases.
Historical data shows small caps can outperform over longer periods.
Why Staying Invested May Be the Best Option
Long-Term Potential

Small cap funds reward investors with long-term patience.
Early-stage companies in the portfolio need time to grow and deliver returns.
Recovery in Market Cycles

Small caps tend to recover strongly after market downturns.
A long holding period ensures you benefit from this recovery.
Professional Management

Actively managed funds, especially through MFDs with CFPs, allow expert handling.
Fund managers rebalance portfolios based on market trends.
Switching May Not Be Ideal Right Now
Short-Term Returns Are Misleading

Short-term performance doesn’t reflect the fund’s future potential.
Switching based on 4-month returns could lead to missed opportunities.
Exit Loads and Taxation

Switching now could attract exit loads and short-term capital gains tax.
This reduces the overall value of your investments unnecessarily.
Approximate Investment Horizon
Recommended Holding Period

Small cap funds need at least 7–10 years for optimal returns.
This allows companies in the fund to mature and capitalise on growth opportunities.
Mid-Term Reviews

Review fund performance annually, not monthly or quarterly.
Ensure the fund aligns with your financial goals and risk tolerance.
Key Considerations Before Staying or Switching
Reassess Your Risk Tolerance

Small cap funds are not for low-risk investors.
Ensure you are comfortable with high volatility and short-term losses.
Verify the Fund’s Quality

Check the fund’s historical performance over at least 3–5 years.
Assess the consistency of returns and the fund manager’s expertise.
Ensure Portfolio Diversification

Avoid overexposure to small caps. Balance your portfolio with large and mid-cap funds.
This reduces risk while ensuring steady returns.
Stay Patient and Focused on Goals

Small cap funds demand patience for wealth creation.
Stick to your financial plan without reacting to short-term market changes.
Final Insights
Your investment in small cap mutual funds requires patience and a long-term perspective. Negative returns in the short term are expected but not indicative of future performance. Exiting now could lead to unnecessary costs and missed opportunities for growth.

Continue investing for at least 7–10 years to maximise your returns. Regularly review your portfolio with a Certified Financial Planner to ensure it aligns with your goals. Focus on building a well-diversified portfolio to balance risks and rewards effectively.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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We know that compounding takes pretty long time to happen. If I take out my entire amount (invested + gained) from a poorly performing MF and invest it in a new better MF and carry on the SIP in the new MF, will the chain of compounding be broken? Or, it will continue as is?
Ans: Compounding is a powerful concept where your returns generate further returns over time. When you stay invested in a mutual fund, compounding accelerates with long-term holding. However, moving your money from one fund to another does not break compounding but resets the compounding chain in the new fund.

Will Compounding Continue if You Switch Funds?
Switching funds involves redeeming your investments in one fund and reinvesting in another. Here’s what happens:

Compounding Resets:
The new fund starts its compounding process afresh from the reinvested amount.

Impact of Redeeming Poorly Performing Funds:
A switch allows your capital to grow better in a fund with higher returns.

Compounding Not Broken:
The chain is not broken if the new fund performs well and you stay invested for the long term.

Evaluating Whether to Exit a Poor Performer
Before switching, carefully evaluate the underperformance of the current fund.

Temporary vs. Persistent Underperformance:
Check if the fund is underperforming for a prolonged period (3+ years).

Compare with Peers:
Assess the fund’s performance relative to its category peers and benchmarks.

Review Fund Management:
Investigate changes in fund management, strategy, or market conditions causing the underperformance.

Tax and Exit Load:
Keep in mind LTCG and STCG tax rules and exit load charges before redeeming.

Benefits of Switching to a Better Fund
Switching to a well-performing fund can boost long-term wealth creation.

Improved Returns:
A fund with consistent returns provides better compounding benefits.

Aligned Goals:
A better fund aligns with your financial goals and risk tolerance.

Optimised Portfolio:
Switching can improve overall portfolio efficiency and diversification.

Role of Actively Managed Funds in Compounding
Actively managed funds are better suited for wealth creation compared to passive funds like index funds.

Potential for Outperformance:
Skilled fund managers can outperform benchmarks, especially in volatile markets.

Flexibility:
Actively managed funds adapt to market changes for better returns.

Importance of Professional Guidance
Making the right switch requires expert advice.

Certified Financial Planners:
Seek guidance from a Certified Financial Planner to select suitable funds.

Investing Through MFDs:
Regular plans through MFDs ensure personalised service and monitoring of investments.

Avoiding Direct Funds:
Direct funds lack professional monitoring, which can affect long-term compounding.

Tax Implications of Switching
Switching funds involves redeeming investments, triggering tax liabilities.

Equity Mutual Funds:
LTCG above Rs. 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

Debt Mutual Funds:
Gains are taxed as per your income slab, regardless of holding period.

Exit Loads:
Redeeming within the exit load period incurs additional charges.

SIP Continuation in the New Fund
Continuing your SIP in the new fund ensures disciplined investing.

No Disruption in Investments:
The regular contributions in SIPs help maintain wealth-building momentum.

Rupee Cost Averaging:
SIPs average out market fluctuations, ensuring better returns over time.

Long-Term Growth:
Staying consistent in SIPs is key to maximising compounding benefits.

Factors to Consider When Switching Funds
If you decide to switch, evaluate the following factors:

Fund Category:
Choose a fund category matching your financial goals.

Risk-Return Profile:
Ensure the new fund aligns with your risk tolerance.

Track Record:
Select a fund with a consistent performance history over at least 5 years.

Investment Horizon:
Stay invested in the new fund for 5-10 years to maximise compounding.

Final Insights
Switching from a poorly performing mutual fund to a better one does not break compounding. Instead, it resets the growth process in a more suitable fund. Evaluate underperformance carefully before switching and consider tax implications.

Work with a Certified Financial Planner to select the right fund and ensure long-term wealth creation. Stay disciplined in SIPs and maintain a diversified portfolio for consistent compounding benefits.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Hi, i need to have advice on my current Mutual Fund Holding allocation, Axis Blue Chip Fund SIP -10K HSBC Midcap Fund - SIP -10K ICICI Pru Equity and Debt Fund SIP -15K Mirae Asset Large and Mid Cap Fund - 15K Kotak Flexi Cap Fund- 10K SBI Small Cap Fund - 15k I am looking for a long term horizon for my retirement monthly income post 60, currently i am 45 and holding the above fund since 2019. I would like to seek your expert advice on the above and any suggestion will be highly appreciated
Ans: It’s inspiring to see your commitment to retirement planning through mutual funds. Since your goal is a secure retirement corpus, let’s analyse your portfolio and provide a well-rounded perspective.

Portfolio Overview
You are investing Rs 75,000 per month across six funds.
Your portfolio has a mix of large-cap, mid-cap, flexi-cap, and small-cap funds.
A hybrid equity-debt fund adds a conservative element to your portfolio.
Your investment horizon is long-term, with 15 years until retirement.
Key Strengths of Your Portfolio
Diverse Fund Categories: Your portfolio spans multiple categories, ensuring balanced exposure to risk and reward.
Allocation to Small and Mid-Cap Funds: These funds could deliver high returns over the long term.
Hybrid Equity-Debt Fund: This adds stability during volatile markets.
Long-Term Horizon: This allows compounding to work effectively on your corpus.
Areas That May Need Attention
1. Fund Overlap
Holding multiple funds may lead to overlapping stock allocations.
Large-cap and flexi-cap funds often invest in similar companies.
This duplication can dilute diversification and increase portfolio risk.
2. Small and Mid-Cap Allocation
Small-cap funds have higher risk and longer recovery times.
A 30% allocation to these categories may be slightly aggressive.
3. Hybrid Equity-Debt Fund Role
The hybrid fund may underperform pure equity funds over 15 years.
Reassess its allocation considering your long-term growth needs.
4. Tax Efficiency
Be mindful of tax implications under the new rules for equity and debt funds.
LTCG above Rs 1.25 lakh is taxed at 12.5%, while STCG is taxed at 20%.
Regular monitoring can ensure your portfolio remains tax-efficient.
Recommendations for Optimising Your Portfolio
1. Streamline Your Fund Selection
Consolidate overlapping large-cap and flexi-cap funds.
Retain 1-2 high-performing funds in each category for focus and efficiency.
2. Balance Risk Across Categories
Limit small-cap exposure to 15%-20% of your portfolio.
Mid-cap funds offer a balanced risk-reward ratio; retain their current allocation.
3. Increase Allocation to Large-Cap Funds
Large-cap funds provide stability during market downturns.
Consider raising large-cap allocation to 30%-35% of the portfolio.
4. Reassess Hybrid Fund Allocation
Hybrid funds suit moderate-risk investors with shorter horizons.
Replace it with a pure equity fund or a flexi-cap fund for better growth.
5. Explore Index Fund Alternatives Carefully
Index funds have lower expense ratios but lack active fund management.
Active funds add value by capturing opportunities missed by indices.
6. Invest via Regular Plans
Direct funds don’t offer professional guidance and personalised advice.
Regular plans through a Certified Financial Planner ensure strategic alignment with goals.
Tactical Steps for Long-Term Wealth Creation
1. Set Up a Retirement Corpus Target
Calculate your retirement corpus based on desired monthly income post-retirement.
Factor in inflation and life expectancy while estimating.
2. Increase SIPs Gradually
Increase SIP amounts periodically to match salary hikes.
This will amplify the power of compounding over time.
3. Monitor Performance Periodically
Review your portfolio every six months to ensure it aligns with your goals.
Replace underperforming funds based on consistent results, not short-term fluctuations.
4. Consider a Debt Allocation Closer to Retirement
Move part of your portfolio to debt instruments 5-7 years before retirement.
This safeguards your corpus against market volatility near the goal.
Addressing Tax Efficiency
Continue tracking gains to ensure they stay within the Rs 1.25 lakh LTCG exemption annually.
Long-term equity investments are still tax-efficient compared to other instruments.
Debt fund withdrawals may attract tax based on your income slab. Plan these withdrawals carefully.
Final Insights
Your portfolio is well-structured and aligned with your retirement goals. Streamlining overlapping funds and rebalancing small-cap exposure can optimise it further. Focus on active fund management and regular monitoring for consistent returns.

Retirement planning requires periodic adjustments to accommodate market changes. Stay disciplined and committed to your goal for financial independence post-60.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Hi I am 35 year old private company salaried employee and I have recently started doing Sip for rupees 5000 per month diving it into 3 mutual funds Quant Elss tax saver fund growth for 2000, Mahindra Manulife Midcap fund growth 1500 and Kotak manufacturer in india growth 1500. Are the mutual funds I have invested Good to go for long term that is for 10years? Also should I do change any of it or add any more additional MF's to increase my portfolio?
Ans: You have taken a positive step towards wealth creation by starting SIPs. At 35, you have a long-term horizon, allowing for compounding growth. Let us assess your portfolio and suggest improvements.

Strengths of Your Current Investments
ELSS Investment (Rs. 2,000): Offers dual benefits of tax saving and wealth creation.
Midcap Fund Allocation (Rs. 1,500): Potential for higher returns in the long term.
Focused Thematic Fund (Rs. 1,500): A unique choice aligned with sectoral growth opportunities.
These funds indicate you have chosen a mix of diversification and tax benefits.

Areas That Need Attention
1. Overconcentration in Specific Funds
Sectoral and midcap funds can be volatile.
High concentration in such funds may impact stability.
2. Insufficient Diversification
You lack exposure to large-cap funds.
A balanced portfolio should include all market capitalisations.
3. Low Overall Investment
Rs. 5,000 is a modest start but may not meet long-term goals.
A higher SIP contribution ensures better corpus growth.
4. Tax Saving Strategy
Over-dependence on one ELSS fund limits diversification.
Consider adding another ELSS fund with a different investment style.
5. Lack of Hybrid or Balanced Funds
You do not have funds that offer stability during market downturns.
Recommendations to Improve Your Portfolio
1. Diversify Across Market Capitalisations
Add a large-cap mutual fund to ensure steady growth.
Large-caps offer consistency and lower risk over time.
2. Include a Balanced Hybrid Fund
Balanced funds provide stability by investing in equity and debt.
They reduce volatility while offering decent returns.
3. Increase Your SIP Contribution
Gradually raise your SIP to Rs. 10,000 per month.
This will align better with your long-term goals.
4. Add Another ELSS Fund
Diversify within ELSS to maximise tax-saving opportunities.
Choose funds with different strategies for better portfolio balance.
5. Avoid Thematic Overexposure
Sector-specific funds are high-risk.
Allocate only a small percentage of your portfolio here.
6. Consult a Certified Financial Planner
A professional can guide fund selection and portfolio alignment.
Choose regular funds through an MFD to benefit from professional support.
Importance of Active Fund Management
Actively managed funds often outperform passive funds like ETFs.
Fund managers adjust portfolios based on market conditions.
Active funds provide higher returns over the long term compared to index funds.
Additional Steps for Holistic Financial Growth
1. Set Financial Goals
Define goals like retirement, children’s education, or a house.
Assign investments to each goal for better planning.
2. Increase Emergency Fund
Save 6-12 months’ expenses in liquid funds or FDs.
This protects against unexpected financial crises.
3. Secure Insurance Coverage
Purchase term insurance with Rs. 1 crore coverage.
Health insurance should have Rs. 15 lakh coverage for comprehensive security.
4. Regular Portfolio Reviews
Evaluate fund performance every 6-12 months.
Replace underperforming funds after consulting an expert.
5. Tax Efficiency
Continue investing in ELSS to maximise Section 80C benefits.
Claim tax deductions under Section 80D for health insurance premiums.
Final Insights
Your current investments are a good start, but diversification is needed. Add large-cap and hybrid funds for balance. Increase your SIP gradually to align with your financial goals. Regular reviews and professional advice will ensure optimal returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |7088 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Is ulip plans are good to invest or sip is better can you suggest???
Ans: ULIPs are hybrid products combining insurance and investment.
They offer a life insurance cover and invest your premium in equity or debt.
A portion of your premium is used for insurance. The remaining is invested.
However, there are some disadvantages to ULIPs:

High Costs: ULIPs charge fees like premium allocation, policy administration, and fund management charges. These reduce your net returns.
Lock-In Period: They have a minimum 5-year lock-in period, limiting liquidity.
Complex Structure: Balancing insurance and investment often leads to sub-optimal outcomes in both.
Advantages of ULIPs:

They provide dual benefits of insurance and investment in one product.
Tax-saving benefits are available under Section 80C and maturity proceeds under Section 10(10D) (subject to certain conditions).
But are these advantages worth the high costs and reduced flexibility?

Understanding SIPs (Systematic Investment Plans)

SIPs are a disciplined way to invest in mutual funds, primarily equity or hybrid.
SIPs allow you to invest small amounts regularly. This ensures affordability and consistency.
They provide the benefit of rupee cost averaging and the power of compounding.
Advantages of SIPs:

Low Costs: Actively managed mutual funds through MFDs with CFPs offer low expense ratios.
Flexibility: You can increase, decrease, or stop your SIP anytime.
Customised Returns: SIPs focus solely on wealth creation. This allows professional fund managers to maximise returns.
Transparency: SIPs offer clear insights into fund performance, portfolio, and management strategy.
Why SIPs Are Better Than ULIPs for Most Investors

Insurance and investment serve different purposes. Combining them often leads to inefficiency.
SIPs give you higher returns as the entire amount is invested, not split like in ULIPs.
ULIPs are suitable only for investors comfortable with long lock-ins and high charges.
You can pair SIPs with a term insurance plan for a more cost-effective strategy.
A Certified Financial Planner’s Recommendation

Buy a term insurance plan for pure risk coverage. It's cheaper and offers high cover.
Invest separately in SIPs for wealth creation. This ensures focused returns without compromising insurance needs.
How SIPs Outperform ULIPs in Various Scenarios

Scenario 1: Flexibility

SIPs allow you to stop or change investments. ULIPs restrict this with lock-ins.
Scenario 2: Costs and Charges

SIPs charge only fund management fees. ULIPs have multiple charges, reducing your returns.
Scenario 3: Wealth Creation

SIPs focus solely on wealth creation with expert fund management. ULIPs split their focus.
Scenario 4: Tax Implications

Mutual fund taxation rules depend on the type of fund and holding period. ULIPs offer tax benefits but may still fall short on returns.
Disadvantages of ULIPs to Keep in Mind

They are often mis-sold as high-return products without highlighting costs.
They don’t offer flexibility in insurance coverage.
They limit liquidity for five years, affecting short-term goals.
Final Insights

ULIPs may seem attractive for combining insurance and investment. However, they often fall short when compared to SIPs in mutual funds.

By separating your insurance and investment needs, you gain flexibility, transparency, and better returns. Always prioritise cost-effective and goal-aligned strategies for long-term financial growth.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

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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