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Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 08, 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 DEBRAJ on May 07, 2024Hindi

I am 24 Years Old. Working in Cybersecurity Domain in a Renowned Organization. I am Investing in Mutual Funds through SIP since Last 4-5 Months. Here is my Breakup. I am Investing 50k in SIP. ( 15k Parag Parikh Flexicap + 15k Quant Mid Cap Direct + 13k Aditya Birla PSU Direct Growth + 7k UTI Nifty 50 Index) . I want to know am going right way in terms of investment or should I change the funds or follow some other processes. My Goal is to Gather some corpus to buy a property shortly around in budget (30-40lac,) and after that I will save for future investments. Can You guide me with some better advice.

Ans: It's fantastic to see your proactive approach towards investing at such a young age! Let's dive into your investment strategy and explore some recommendations:
Investment Breakdown:
• You're investing 50,000 rupees per month through SIPs, with allocations across different mutual funds.
• Your current portfolio consists of Parag Parikh Flexicap, Quant Mid Cap, Aditya Birla PSU, and UTI Nifty 50 Index funds.
Amidst your journey, you're undoubtedly making commendable strides towards securing your financial future. However, let's explore some aspects to ensure you're on the right track:
Diversification:
• Diversification is key to mitigating risk and maximizing returns. Your current portfolio seems well-diversified across different market segments, including flexicap, mid-cap, PSU, and index funds. This approach offers exposure to various sectors and can potentially enhance long-term growth prospects.
Active vs. Passive Investing:
• You've chosen actively managed funds, which offer the benefit of professional fund management and the potential for outperformance. While index funds like UTI Nifty 50 Index provide low-cost exposure to market indices, they may lack the potential for alpha generation compared to actively managed funds. Active management allows fund managers to capitalize on market opportunities and adapt to changing market conditions, potentially leading to superior returns over time.
Future Goals:
• Your goal of accumulating a corpus to purchase property aligns with your long-term financial objectives. As you progress towards this milestone, continue to prioritize disciplined saving and prudent investment decisions. Consider revisiting your asset allocation and investment strategy periodically to ensure they remain aligned with your evolving goals and risk tolerance.
Recommendations:
• Given your goal of purchasing property in the near future, maintaining a balanced approach to investing is essential. Consider continuing with your current SIP allocations, as they offer diversification and potential for growth. However, if you're considering adjustments, consult with a Certified Financial Planner (CFP) who can provide personalized guidance tailored to your specific financial situation and goals.
• When it comes to purchasing property, start researching potential locations, property types, and financing options. Additionally, continue saving diligently towards your down payment and associated expenses to achieve your homeownership goal.
Remember, investing is a journey, and it's essential to stay focused on your objectives while adapting to changing circumstances. With your proactive mindset and commitment to financial growth, you're well-positioned to achieve your aspirations. Keep up the excellent work, and don't hesitate to seek professional advice whenever needed. Your dedication to financial literacy and planning will undoubtedly pave the way for a brighter financial future!

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