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Nikunj

Nikunj Saraf  |308 Answers  |Ask -

Mutual Funds Expert - Answered on Mar 01, 2023

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more
ABHISHEK Question by ABHISHEK on Feb 10, 2023Translate
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Hi, I am a 22 year old male and have started investing since September 2022. Till now, I have invested in a few mutual funds, one ETF, and SGB as well. My question: Is my portfolio good enough? Is fund selection and SIP distribution good? My goal is capital appreciation and I don't need this money in the long term or coming years. My investments currently are : 1. Parag Parikh Flexi Cap (Direct) - 10k/month & lumpsum of 10 Lakhs initially 2. HDFC Index S&P BSE Sensex Direct Plan Growth - 5k/month & lumpsum of 5 Lakhs initially. 3. Tata Digital India Fund Direct Growth - 5k/month & lumpsum of 5 Lakhs initially. 4. SBI small cap fund - 5k/month 5. PGIM India Midcap Opportunities Fund Direct Growth - 5k/month 6. Quant Liquid fund Direct Plan Growth (emergency fund purposes) - lumpsum of 4 lakhs. 7. Mirae Asset NYSE FANG+ ETF - lumpsum of 5 lakhs. 8. Sovereign Gold Bonds (SGBAUG30) - Approximately 4 lakhs

Ans: Hello, Abhishek. Overall, your portfolio reports sound very promising. I must say that you have conducted thorough research on the market. Your current sip allocation is well aligned with market. Mirae Asset NYSE FANG+ ETF has major allocation in Global equity and its sector specific, you may be conservative while moving forward.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Sanjeev

Sanjeev Govila  |441 Answers  |Ask -

Financial Planner - Answered on Feb 05, 2024

Asked by Anonymous - Jan 25, 2024Translate
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Dear Sir, I am a 35-year-old IT professional seeking your advice on my Mutual Funds portfolio. I would like to know if it looks good as it is or if any changes are needed. Here is the breakdown of my SIP portfolio: 1. Parag Parikh Flexi cap - ?7500 2. Quant Small Cap - ?4500 3. Axis Midcap - ?5500 4. Mahindra Manulife Multicap - ?2500 5. Mirae Asset Large and MidCap - ?3000 6. ICICI Prudential Ultra Short Term - ?18500 I utilize the ICICI Prudential Ultra Short Term fund to cover my life insurance (Jeevan Labh) with a sum assured of ?35 Lakhs. The yearly payment mode is ?1.92 Lakhs. Could you advise if this approach is appropriate? I have been investing in Mutual Funds for the past four years, with the current overall investment being ?8 Lakhs. Initially, I did not have specific goals, but now, with two children, I am looking to save for their education and my retirement. I plan to continue investing in Mutual Funds for the next 7 to 10 years. Additionally, I invest ?5000 per month each in PPF and SSY. I also have a car loan of ?10 Lakhs with an 8.8% interest rate over 48 months. The outstanding balance is ?9 Lakhs, and I pay ?25,000 per month towards the car loan. I can take moderately high risk. Could you provide insights on how my portfolio and investment plan look overall? Regards, Prakash
Ans: It's commendable that you are actively planning for your future and your children's education.

Analyzing your mutual funds portfolio:

Parag Parikh Flexi cap - ?7500
Quant Small Cap - ?4500
Axis Midcap - ?5500
Mahindra Manulife Multicap - ?2500
Mirae Asset Large and MidCap - ?3000
ICICI Prudential Ultra Short Term - ?18500

Your diversified allocation across different market caps and fund types is balanced. However, periodically review and rebalance based on market conditions and financial goals.

Regarding using ICICI Prudential Ultra Short Term for life insurance payments, it aligns with your moderate risk tolerance. Evaluate traditional life insurance for long-term security and assess tax implications.

Considering your 7 to 10-year horizon and moderate risk appetite, your portfolio seems well-aligned. Regularly revisit goals and adjust investments accordingly. Additional investments in PPF and SSY, along with a focus on long-term mutual funds, show a comprehensive approach.

Regarding the car loan, with an 8.8% interest rate, evaluate the opportunity cost of continuing versus early repayment based on investment returns.

Your investment strategy appears sound, but periodic reviews are crucial. Consult with a certified financial advisor for fine-tuning based on market conditions and personal developments.
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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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