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Ramalingam Kalirajan |8077 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Mohammad on May 13, 2024Hindi

Hi Sir, I have 1) HDFC Index S&P BSE sensex fund. 2) Quant Midcap Fund. 3) Nippon India Large Cap Fund. 4) Parag Parikh Flexi Cap Fund. 5) Kotak Emerging Equity fund. 6) HDFC Small Cap Fund. 7) Navi Nifty 50 Index Fund. I have a plan to invest for 10 years monthly 1000 in each fund please review the portfolio and advise for any adjustments if required.

Ans: Portfolio Review and Recommendations

Diversification Overview:

Your portfolio comprises a well-diversified mix of mutual funds spanning various market segments.
Diversification is crucial for managing risk and optimizing returns over the long term.
Fund Assessment:

HDFC Index S&P BSE Sensex Fund:
Provides exposure to top companies listed on the BSE.
Index funds lack potential for outperformance compared to actively managed funds.
Quant Midcap Fund:
Actively managed fund targeting mid-cap segment.
Offers potential for higher returns through strategic stock selection.
Nippon India Large Cap Fund:
Primarily invests in large-cap stocks for stability and growth potential.
Suitable for investors with lower risk tolerance due to lower volatility.
Parag Parikh Flexi Cap Fund:
Offers flexibility to invest across market capitalizations.
Actively managed approach aims for alpha generation.
Kotak Emerging Equity Fund:
Focuses on the emerging segment for higher growth potential.
Higher volatility associated with mid and small-cap stocks.
HDFC Small Cap Fund:
Targets small-cap companies with potential for significant growth.
Higher risk due to increased volatility in small-cap segment.
Navi Nifty 50 Index Fund:
Mirrors the performance of the Nifty 50 index.
Low-cost exposure to market benchmarks but may underperform actively managed funds.
Long-Term Perspective:

With a 10-year investment horizon, your choice of funds aligns with long-term wealth creation objectives.
Actively managed funds have the potential to outperform market benchmarks over the long term.
Portfolio Adjustment Recommendations:

Regular Monitoring:
Review portfolio performance periodically to ensure alignment with financial goals.
Monitor fund performance relative to peers and benchmarks.
Rebalancing:
Consider rebalancing portfolio to maintain desired asset allocation.
Rebalancing helps manage risk and optimize returns over time.
Replace Underperformers:
Identify underperforming funds that may warrant replacement.
Seek opportunities to enhance portfolio performance through strategic changes.
Investment Discipline:

Stay disciplined during market fluctuations to avoid impulsive decisions.
Long-term investing coupled with disciplined approach enhances wealth accumulation potential.
Conclusion:

Your diversified portfolio reflects a prudent investment strategy for long-term wealth creation.
Regular monitoring and periodic adjustments are essential to stay on track towards achieving financial goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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