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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Feb 20, 2020

Mutual Fund Expert... more
Naveed Question by Naveed on Feb 20, 2020Hindi
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I am 25 years old. I have invested in two mutual fund Mirae Asset Emerging Blue Chip Fund and Motilal Oswal Multicap 35 Fund through sip of ₹1000 and ₹500 respectively from last 7 months. I am moderate risk taker and now I want invest more 2000 rupees through sip. I want to invest for the duration of 12-15 years.

Name of the Fund Category RankMF Star Rating
Naveed Iqbal    
MiraeAsset Emerging Blue Chip Fund Equity - Large & Mid Cap Fund 4
Motilal Oswal Multicap 35 Fund Equity - Multi Cap Fund: 5

Ans: Please continue

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Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Hello Sir, I m 42, Investing in Mutual fund from last 2 years, following are the SIP's Quant infrastructure- Rs.3000 Quant Small cap- Rs.3000 Parag Parikh Flaxi cap- Rs. 3000 Nippon large cap - Rs. 3000 Newly started Motilal Oswal Midcap- Rs. 3000 Newly started Quant Multi asset fund- Rs. 3000 Newly started Please let me know if needs any changes and my investment span will be 15-20 years.
Ans: Evaluating Mutual Fund Portfolio for Long-Term Goals
As a Certified Financial Planner, I understand the importance of optimizing your mutual fund portfolio to achieve your long-term financial goals. Let's analyze your current investments and assess if any changes are necessary for your investment horizon of 15-20 years.

Genuine Appreciation for Long-Term Investment Horizon
I appreciate your commitment to long-term investing, which is essential for wealth accumulation and financial security over time.

Analyzing Current Investments
Existing SIPs:
Quant Infrastructure Fund
Quant Small Cap Fund
Parag Parikh Flexi Cap Fund
Nippon Large Cap Fund
Newly Started SIPs:
Motilal Oswal Midcap Fund
Quant Multi Asset Fund
Assessing Portfolio Composition
Pros of Current Portfolio:
Diversification: Your portfolio includes funds across various market segments, providing diversification benefits.
Potential for Growth: Each fund targets different sectors and market capitalizations, offering growth opportunities.
Considerations for Changes:
Risk Management: Evaluate the risk exposure of newly started funds and ensure they align with your risk tolerance and investment objectives.
Performance Review: Regularly monitor the performance of all funds to ensure they meet expectations and remain suitable for your goals.
Cost Analysis: Consider the expense ratios and fees associated with each fund to optimize your overall portfolio cost.
Conclusion and Recommendation
Given your investment horizon of 15-20 years, it's crucial to:

Stay Invested: Continue investing systematically in mutual funds to benefit from long-term compounding.
Review Periodically: Periodically review your portfolio performance and make adjustments if necessary to align with changing market conditions and financial goals.
Consult a Financial Planner: Consider consulting a Certified Financial Planner to get personalized advice tailored to your specific financial situation and goals.
Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 14, 2024Hindi
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Pls advise My age is 50 yrs Started mutual fund investment now Icici pru opportunities fund Direct growth 1k Icici pru equity n debt direct growth 1.5k Sbi advantage drect growth 50000,Hdfc midcap opportunities 10000 Kotak opportunities fund direct 10000 OnlySip started pls advise is it fine amd Other Sip pls suggest Total investment 3.30 k SBI contra Sip 10000
Ans: Current Financial Situation
You are 50 years old.

You have started investing in mutual funds recently.

Existing Investments
ICICI Pru Opportunities Fund Direct Growth: Rs 1,000 SIP.

ICICI Pru Equity & Debt Direct Growth: Rs 1,500 SIP.

SBI Advantage Direct Growth: Rs 50,000 lump sum.

HDFC Midcap Opportunities: Rs 10,000 lump sum.

Kotak Opportunities Fund Direct Growth: Rs 10,000 lump sum.

SBI Contra Fund SIP: Rs 10,000.

Evaluation and Analysis
Investment Mix
Your investments are diversified across equity, hybrid, and contra funds.

This mix provides a balance between growth and stability.

SIPs and Lump Sum Investments
SIPs are beneficial for averaging out market volatility over time.

Lump sum investments in midcap and opportunities funds add potential for higher returns.

Recommendations
Continue Current SIPs
Your current SIPs in ICICI Pru Opportunities and ICICI Pru Equity & Debt are good for diversification.

Continue with these SIPs for consistent growth.

Review Lump Sum Investments
Your lump sum investments in SBI Advantage, HDFC Midcap Opportunities, and Kotak Opportunities Fund are well-placed.

Keep these investments but review their performance annually.

Additional SIPs
To further diversify and strengthen your portfolio, consider adding the following SIPs:

Large Cap Fund: Invest Rs 5,000 monthly. This will provide stability and steady growth.

Flexi Cap Fund: Invest Rs 5,000 monthly. This fund adjusts investments across market caps based on market conditions.

International Fund: Invest Rs 3,000 monthly. This adds geographical diversification and reduces country-specific risks.

Increase in Existing SIPs
Increase your SIP in ICICI Pru Opportunities Fund to Rs 3,000. This fund has good growth potential.

Increase your SIP in ICICI Pru Equity & Debt to Rs 3,000. This hybrid fund balances risk and return.

Health Insurance
Ensure you have a comprehensive health insurance plan. This is crucial at your age to cover medical emergencies.
Retirement Planning
Aim to invest at least 20% of your monthly income towards retirement funds.

Consider investing in a mix of equity and debt mutual funds for balanced growth.

Final Insights
Your diversified investment strategy is commendable. Continue your existing SIPs and consider adding new ones.

Increase your SIP amounts in high-potential funds.

Secure comprehensive health insurance to cover medical expenses.

Review your portfolio annually with a Certified Financial Planner to stay aligned with your financial goals.

Aim for a balanced portfolio that includes large cap, flexi cap, and international funds for robust growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

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Hi Myself Sanjeev Kumar from Himachal Pradesh, I am investing in mutual funds from last 3 years on below mutual funds through SIP 1. Aditya birla multicap fund (regular growth) ---- Rs 1000 monthly 2. Invesco India flexi Cap fund (Plan growth) ------ Rs 1000 monthly 3. Invesco India Multicap fund (regular growth) ---- Rs 1000 monthly 4. Kotak multicap fund (regular) ------------------------- Rs 1000 monthly 5. Kotak emerging equity fund (growth) --------------- Rs 1000 monthly 6. Kotak ELSS tax saver fund ------------------------------- Rs 500 monthly 7. Union tax saver fund (ELSS) ---------------------------- Rs 1500 monthly 8. Bandhan Nifty 200 momentum 30 index fund (regular plan) --- Rs 1000 9. Kotak multiasset fund ------------ Rs 1000 monthly (started a month ago) 10. UTI EFT Gold fund ------------------ Rs 1000 /- Apart from above, I am investing in below also 1. PPF ---------------- 1.5 lac annually 2. NPs ---------------- 0.5 lac annually 3. LIC ----------------- 0.5 lac annually Sir you are requested to review my portfolio, Is this portfolio good enough to produce at least 60- 70 lakhs return in next 10-12 years or some reshuffling is required. If yes kindly suggest some good funds. Hoping to hear from you soon Thanks
Ans: You have a fairly diversified portfolio with exposure across equity funds, tax-saving instruments, and fixed-income products. Let's evaluate your current portfolio:

Equity Exposure
Multicap and Flexi-cap Funds:

You have good exposure to multicap and flexi-cap funds. These funds are beneficial as they provide exposure across different market caps (large, mid, small), offering balanced risk and growth potential.
The fund choices are varied, but some of them overlap in terms of the equity segments they cover. This may lead to duplication, reducing the overall diversification.
Tax-saving ELSS Funds:

Both Kotak ELSS Tax Saver Fund and Union Tax Saver Fund provide tax benefits under Section 80C. This is an excellent strategy for reducing taxable income while simultaneously growing wealth over the long term. However, having two ELSS funds with similar objectives may not be necessary.
Consider reviewing the performance and making sure that your tax-saving investments are optimized for returns.
Nifty and Gold Exposure:

Your investment in the Bandhan Nifty 200 Momentum Index Fund introduces some exposure to index funds, but remember, index funds tend to track market performance and do not offer active management. While this can be a cost-effective option, you might miss out on higher growth opportunities that actively managed funds can offer.
Gold exposure via UTI Gold ETF is a good hedge against inflation, but it is a passive investment and does not generate income.
Fixed Income Exposure
PPF and NPS:

Your investment in PPF (Public Provident Fund) and NPS (National Pension Scheme) is a solid long-term savings strategy. These provide safety, tax benefits, and long-term growth.
PPF locks your funds for 15 years, but it offers guaranteed returns, which is an excellent option for conservative savings. NPS, however, provides exposure to equity and debt markets and is a good retirement planning tool.
LIC:

LIC investments are a combination of insurance and savings. However, considering the long-term performance and opportunity cost, it might be worth reviewing whether these investments align with your future goals or if reallocating these funds into mutual funds could offer better returns.
Investment Amount and Goals
Given your monthly SIP of Rs. 10,500 and annual investments of Rs. 2.5 lakh in PPF, NPS, and LIC, it is essential to have a clear vision of your financial goals over the next 10-12 years.

Expected Return of Rs. 60-70 Lakh:
Based on your goal of accumulating Rs. 60-70 lakh in the next 10-12 years, your current portfolio seems reasonable. However, there are areas where optimization can boost the chances of meeting your goal.
Suggested Portfolio Reshuffling
Reduce Fund Overlap:

You are holding multiple multicap funds with similar objectives. It might be wise to consolidate these into one or two strong performers to reduce duplication.
Evaluate whether the Nifty 200 index fund is in line with your preference for actively managed funds.
Focus on Actively Managed Funds:

Active Management: Actively managed funds tend to provide higher returns, especially in fluctuating markets. They also help mitigate risks, unlike index funds, which follow market movements and may not outperform during volatile periods.
Consider focusing on large-cap, mid-cap, and small-cap funds for equity growth while also ensuring there is exposure to sectoral funds and thematic funds for extra diversification.
Diversified Growth-Focused Funds:

Given your long-term horizon, including growth-oriented funds is crucial. You may consider adding more funds with a history of consistent outperformance in the equity space.
Tax Optimization:

Your tax-saving investments are well-distributed between ELSS, PPF, and NPS. However, reviewing your ELSS funds for performance is essential. Choose funds that consistently outperform their benchmark and offer strong long-term growth.
Gold Exposure:

Gold exposure via ETFs is beneficial, but consider limiting it to around 5-10% of the portfolio as a diversification hedge. You may also explore mutual funds that invest in gold.
Final Insights
Consolidate Funds: Reduce the number of funds to avoid overlap and improve focus on quality investments.
Increase Focus on Actively Managed Funds: Focus on actively managed equity funds to achieve better returns in the long run.
Evaluate Tax-Saving Instruments: Review your ELSS investments for their performance and align them with your risk profile.
Goal-Oriented Approach: Stay focused on your long-term goals and ensure that your asset allocation matches your risk tolerance and time horizon.
Finally, given your clear objective of growing wealth to reach Rs. 60-70 lakh over the next 10-12 years, restructuring your portfolio to optimize risk and returns will significantly help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2025

Asked by Anonymous - May 13, 2025
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Greetings!!!! I am 43 years Old, I had started 10k per month TATA AIA SIP in previous year for total 7years Plan. I want to education plan for my 1 kid who is 6 years old now. Please advice and guide me about more investments plan, as i am still confused about future growth and any plan for my wife age 38years.
Ans: You're at a critical financial stage. Planning for your child’s education and securing your family’s future are both top priorities. You've already started a ULIP, which is a start. But let’s take a deeper 360-degree view of your situation.

Below is a detailed plan, broken into simple sections for better clarity.



Assessment of Your Current ULIP Investment

You're investing Rs. 10,000 per month in a 7-year ULIP.



ULIPs mix insurance with investment. That reduces the growth power of your money.



Charges like premium allocation, fund management, and mortality charges reduce returns.



Your actual invested amount is much lower in the first few years.



ULIPs have limited flexibility in fund switching and partial withdrawal rules.



Maturity benefits are taxed if the annual premium exceeds Rs. 2.5 lakh. Be cautious of this.



A ULIP is not ideal for education goals or long-term wealth building.



As a Certified Financial Planner, I suggest surrendering this policy and moving funds to mutual funds.



You can continue till 5 years to avoid surrender charges if already started.



But do not renew after the 7-year term. Don't increase contributions in this ULIP.



Planning for Your Child’s Higher Education

Your child is 6 years old. You have around 11-12 years.



College education in India or abroad can cost Rs. 30–60 lakhs or more.



Instead of ULIPs, invest in diversified mutual funds. This will give better inflation-adjusted returns.



Use a mix of large cap, flexi cap and small cap mutual funds.



Start SIPs in these funds with a long-term horizon of 10-12 years.



You may also consider goal-based child education funds that are actively managed.



Don't invest in direct funds. They look cheaper, but don’t offer guidance.



Always invest through a Certified Financial Planner via a regular plan.



Your investment will stay aligned with your goal as the planner will guide with rebalancing.



Use a dedicated SIP only for child’s education goal. Don’t merge it with retirement planning.



Suggested Action Plan for Child’s Education

Shift future contributions from ULIP to SIPs in active funds.



Start with Rs. 20,000 per month SIP only for education.



Review this SIP every year and increase it by 10%-15% annually.



Add lump sums like bonuses or yearly increments into the same goal fund.



In the last 2 years before the education goal, shift to debt funds slowly.



This will protect your accumulated amount from equity volatility.



Investment Plan for Your Wife (Age 38)

She has a long horizon. She can invest for both retirement and her independent needs.



Open a separate mutual fund folio in her name.



Start SIPs in flexi cap, large & midcap, and hybrid funds in regular plans.



You can start with Rs. 10,000 per month and increase gradually.



You may also use her PPF account for additional tax-free corpus.



Avoid investing in gold, insurance policies, or real estate for her.



Ensure she has her own health insurance and a term insurance if she’s working.



If she’s not working, then create an emergency fund in her name.



That gives her independence and safety if she needs cash.



Family Protection with Insurance

You did not mention your term cover. You must have it if not already.



Ideal cover should be 15–20 times your yearly income.



ULIPs or LIC endowment policies should not be considered for protection.



Avoid investment-linked insurance plans. Keep insurance and investment separate.



Review your existing insurance covers. Add riders like critical illness and accident if needed.



Tax Efficient Planning

Use Section 80C wisely. Don’t just rely on ULIP or LIC plans.



Max out PPF, ELSS mutual funds, and children tuition for tax saving.



Invest in actively managed ELSS funds for better returns than ULIPs.



Avoid index funds for tax planning. They may underperform in volatile markets.



Debt funds are taxed as per slab now. Use carefully if short horizon.



Track capital gains if you sell mutual funds. Use new tax rules for equity funds:



  - LTCG above Rs. 1.25 lakh taxed at 12.5%

  

  - STCG taxed at 20%



Plan redemptions well in advance to manage taxes efficiently.



Retirement Planning (For You and Wife)

Start a separate SIP for your retirement corpus. Do not merge with other goals.



You have 17 years for retirement. That’s good for wealth accumulation.



Invest in a mix of actively managed flexi-cap and large-cap funds.



Add hybrid funds to reduce volatility as you near retirement.



Continue EPF, and increase VPF if possible. It is tax-free and safe.



Don't consider NPS if liquidity is important. Maturity rules are rigid.



Use mutual funds with regular advice to stay on track till age 60.



Exit ULIPs and Poor Insurance Products

You mentioned TATA AIA ULIP. Continue for 5 years to avoid penalty.



After that, exit and move funds to SIP in mutual funds.



If you or wife have LIC endowment, Jeevan Saral, or ULIPs, surrender them.



Reinvest maturity amount into SIPs in regular mutual fund plans.



Do not fall for insurance agents who pitch plans as tax saving or guaranteed.



Emergency Fund and Liquidity

Keep at least 6 months of family expenses in a liquid mutual fund.



Don’t use your SIP or education fund as emergency source.



You may open a separate savings bank linked sweep account for this.



This fund will help if there is any job loss, health issue, or urgent need.



What Not to Do

Don’t invest in new ULIPs or insurance-linked plans.



Avoid direct mutual fund investments. You won’t get guided rebalancing.



Do not use your child’s education fund for house down payment.



Don’t pick index funds. They underperform in sideways or bear markets.



Don’t buy land or gold as an investment for your goals.



Final Insights

You are at a very strategic life stage. You have time and income strength.



ULIPs will not help you grow wealth. Shift to goal-based mutual fund SIPs.



Separate goals: child education, your retirement, wife’s security, and emergencies.



Invest only through a Certified Financial Planner for customised long-term support.



Review all goals every year. Increase SIPs with income.



Protect family with pure term insurance and health insurance.



Focus on building wealth in regular mutual funds, not through insurance products.



Real financial freedom comes when goals are funded without stress.



You have a clear head start. Use it with discipline and right guidance.



Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...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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