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

Moneywize

Moneywize   |181 Answers  |Ask -

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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Latest Questions
Nayagam P

Nayagam P P  |4465 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
Jee main 2025,my son got 95.2%tile,71104 rank ,ews rank 10111,home state punjab ,can he get cse,ece,data science,it, branch in any nit,iiit,gftis or which branches he will get in these institutes .
Ans: Varinder Sir, Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4465 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
My son got 93.4 percentile jee main . He got eee bit mesra and cse in srm ktr which prospect is better?
Ans: Sharmistha Madam, prefer BIT-M-EEE. Explore more options for your daughter as back-ups by knowing the JoSAA Counselling Opening & Closing Ranks of last year. Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'

Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Prof Suvasish

Prof Suvasish Mukhopadhyay  |598 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
I have already appeared for the JEE Main and secured a 95.15 percentile, which is close to the previous year's cut-off. My query is whether it is possible to select both options JEE and NFATso that if I do not qualify through my JEE score, my application can be considered based on my NFAT score instead. If selecting both options is permissible, could you please guide me on how to do so while filling out the application form? Your assistance on this matter would be greatly appreciated.
Ans: No, candidates cannot apply using both JEE Main and NAFT scores for the same admissions. JEE Main scores are used for admissions to engineering programs at NITs, IIITs, and other participating institutions, while NAFT scores are used for admissions to NAFT-affiliated universities. These are distinct admission processes, and only one set of scores can be used.

...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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