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New to Mutual Funds: How Should a 24-Year-Old Diversify 40k Monthly?

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Financial Planner - Answered on Sep 13, 2024

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Asked by Anonymous - Sep 11, 2024Hindi
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I am 24-year-old salaried person. Monthly salary is 80k. I want to diversify 40k every month in large, mid and small cap mutual funds. Which plans should I choose? Please help as I am new to mutual funds.

Ans: To diversify your monthly salary of 40k into large, mid, and small-cap mutual funds, here are some options you can consider:

Large-Cap Mutual Funds:

• HDFC Large Cap Fund: This fund invests in large-cap companies with a proven track record. It has a consistent performance and is suitable for investors seeking capital appreciation.
• Axis Long Term Equity Fund: This fund aims to generate long-term capital growth by investing in a diversified portfolio of large-cap companies. It has a good track record and is suitable for investors with a long-term investment horizon.

Mid-Cap Mutual Funds:

• Kotak Emerging Equity Fund: This fund invests in mid-cap companies with the potential to outperform the market. It has a strong investment team and a good track record.
• Mirae Asset Mid Cap Fund: This fund focuses on mid-cap companies with growth potential. It has a diversified portfolio and a good risk-adjusted return.

Small-Cap Mutual Funds:

• Franklin Templeton Small Cap Fund: This fund invests in small-cap companies with high growth potential. It has a good track record and is suitable for investors with a higher risk appetite.
• ICICI Prudential Small Cap Fund: This fund invests in small-cap companies with the potential to generate significant returns. It has a diversified portfolio and a good risk-adjusted return.

Note:

• Investment Horizon: Consider your investment horizon before choosing funds. Small-cap funds typically have higher volatility, so they may not be suitable for short-term investments.
• Risk Tolerance: Assess your risk tolerance before investing. Large-cap funds are generally less volatile than mid-cap and small-cap funds.
• Diversification: Diversifying your investments across different asset classes and fund houses can help reduce risk.
• Regular Review: Regularly review your investments and make necessary adjustments based on your financial goals and market conditions.

Additional Tips:

• Start SIP: Consider starting a Systematic Investment Plan (SIP) to invest a fixed amount every month. This helps discipline your investments and average out the cost of purchase.
• Consult a Financial Advisor: If you are unsure about which funds to choose, consult a financial advisor who can provide personalized advice based on your financial goals and risk profile.

Remember, investing in mutual funds involves risks, and past performance is not indicative of future results. It's important to do thorough research or consult with a financial advisor before making any investment decisions.
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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Good Morning Sir, I am 52 years old and wish to start investing in Mutual Fund with 10K per month as a beginner for a period of 3/5 years Kindly advise me how would I diversify / allocate the money in different funds so as to get the maximum returns Regards Sangeeta Das
Ans: Sangeeta! It's great to hear that you're considering starting your investment journey with mutual funds. Since you have a monthly investment amount of 10,000 INR and a time horizon of 3-5 years, here's a suggested approach to diversify your investments:

Large Cap Funds: These funds invest in well-established companies with a track record of stable performance. They can offer stability to your portfolio.
Allocate around 30-40% of your investment amount to large cap funds.
Mid Cap Funds: Mid cap funds invest in companies with medium market capitalization, offering higher growth potential than large caps but with slightly more risk.
Allocate around 20-30% of your investment amount to mid cap funds.
Small Cap Funds: These funds invest in small companies with high growth potential but higher risk. They can add growth opportunities to your portfolio.
Allocate around 20-30% of your investment amount to small cap funds.
Diversified Equity Funds: These funds invest across market caps and sectors, offering broad diversification and potential for higher returns.
Allocate around 10-20% of your investment amount to diversified equity funds.
Balanced Funds: Balanced funds invest in a mix of equities and debt instruments, offering a balance between growth and stability.
Allocate around 10-20% of your investment amount to balanced funds.
Sectoral Funds (Optional): If you have a specific sector or theme in mind that you believe will perform well, you can allocate a small portion of your investment amount to sectoral funds. However, be cautious as these funds can be more volatile.
Limit the allocation to sectoral funds to around 5-10% of your investment amount.
Remember to review your portfolio regularly and rebalance if necessary to maintain your desired asset allocation. Additionally, consider factors such as expense ratios, fund manager track record, and historical performance when selecting mutual funds.

Lastly, it's always a good idea to consult with a financial advisor to ensure your investment strategy aligns with your financial goals and risk tolerance. Happy investing, Sangeeta!

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Career Counsellor - Answered on Jul 16, 2025

Asked by Anonymous - Jul 16, 2025Hindi
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Hello sirji I got place at NIELIT Ajmer and Thapar both CSE and in NIELIT cyber security and I am from Haryana so wht should I choose?
Ans: As a student from the State of Haryana you are offered seats at NIELIT Ajmer for CSE and Cyber Security alongside CSE at Thapar University, a comprehensive evaluation reveals distinct academic and career pathways. NIELIT Ajmer’s B.Tech in Computer Science and Engineering covers Internet of Things, Cyber Security, and Blockchain Technology with a 60-seat capacity, admission via JEE Main closing around 47,166 for general category, and government-funded programs under MeitY ensuring affordable fees and specialized labs. Thapar University’s CSE achieved an 83% placement rate in 2023 with 334 recruiting companies, robust T&P infrastructure, and major recruiters like Google, Amazon, Microsoft, Deloitte, and IBM. Thapar’s average package of ?11.90 LPA underscores consistent industry engagement and comprehensive training. NIELIT Ajmer Cyber Security offers targeted government-backed certification courses, dedicated placement cells, and proximity to Haryana (~322 km), while NIELIT Ajmer CSE remains nascent with limited placement history. Both institutions feature modern laboratories, libraries, and safe residential facilities supporting holistic student development.

Recommendation: Choose Thapar University CSE for its better job placement record, strong ties with companies, and good academic standing; look at NIELIT Ajmer Cyber Security for affordable, government-supported training in new security technologies; steer clear of NIELIT Ajmer CSE because it has little job placement information and is still growing. All the BEST for Admission & a Prosperous Future!

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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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