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Ramalingam Kalirajan |9699 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 2025

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

Asked by Anonymous - Jun 15, 2025Hindi

I am 30 and 2 month ago I started SIP 1000 Motilal and 1k Aditya Birla also 15k lumsum in Aditya Birla.so can you please suggest it's ok or what else for good returns.... Thanku

Ans: Starting early at age 30 is a very good decision.
Taking action is always the first step.
You have made a strong beginning.
Let us now assess your investments in detail.
Then we will explore better ways to grow your wealth.

Review of Your Current Investment
You have:

SIP of Rs.1000 in one Motilal fund

SIP of Rs.1000 in one Aditya Birla fund

Lump sum of Rs.15,000 in another Aditya Birla fund

This means your total monthly SIP is Rs.2,000
And Rs.15,000 is invested as one-time lump sum.

You have chosen well-known fund houses.
That is a good starting point.
But fund house alone is not enough to judge performance.
We must check the fund type, suitability, and your goal.

Are Your Investments Enough?
Let us assess whether your current setup is sufficient.
You are 30 years old now.
Your investment horizon is long.
So your portfolio should be designed for growth.

But investing Rs.2000 monthly is not enough for future goals.
Rs.15,000 lump sum is also small for long-term wealth creation.
If your income allows, you must increase monthly SIP.

Common Mistakes to Avoid at This Stage
It is good to avoid certain mistakes early.
Here are a few you should be aware of:

Don’t chase returns blindly

Don’t invest without a goal

Don’t invest based on ads or social media

Don’t put all money in same AMC

Don’t ignore portfolio reviews

Don’t continue low-performing funds for long

Many new investors fall into these traps.
Being careful now saves trouble later.

Importance of Goal-Based Investing
You must invest with a purpose.
Without a goal, your investment lacks direction.

Some common goals:

Retirement

Buying a house (but not real estate as investment)

Child’s education or marriage

Starting own business later

Financial independence by 50

Once you define goals, your fund choice becomes clear.
Each goal should have a separate strategy.
This gives better clarity and control.

Limitations of Current Portfolio Structure
From your shared info, your portfolio has:

Two SIPs

One lump sum

All in equity funds

This is good for growth, but not enough by itself.
A complete plan needs:

Clear goal-based buckets

Asset allocation (equity + debt)

Review every year

Exit strategy before goal maturity

More Points to Consider for Strong Returns
To increase return potential:

You need proper diversification

SIP amount should rise every year

Fund selection should be through a Certified Financial Planner

You should avoid direct funds if you are investing without guidance

Direct plans don’t suit investors without expert support.
Direct funds offer no personalised review.
You don’t get behavioural coaching or handholding.

In long term, this leads to bad fund switches.
Or panic selling during market falls.
Better to go with regular funds through MFD with CFP credentials.

What Type of Funds Should You Consider?
You didn’t mention fund category (like large cap, hybrid, etc.)
Just AMC name is not enough.
But here are some suggestions for your stage of life:

Multi-cap or flexi-cap funds are good for starting

Balanced advantage funds help in managing volatility

Mid-cap can be added once SIP base is stronger

Avoid sectoral or thematic funds right now

Choose active funds, not index funds or ETFs

Why to Avoid Index Funds
Many think index funds are low-cost and easy.
But they also have many issues:

No chance of outperformance

They copy market ups and downs

No risk management by fund manager

No option to shift strategy based on situation

Instead, actively managed funds offer:

Professional decision-making

Better returns potential

Flexibility in market phases

Quality stock selection

A Certified Financial Planner helps you choose the right ones.

SIP Strategy for Long-Term Success
You are just two months into your SIP journey.
That is a great first step.
But to build strong returns:

Increase SIP to Rs.5000 as soon as income allows

Review SIPs yearly

Add new funds based on changing life goals

Avoid pausing SIPs during market fall

Link SIPs to specific goals like retirement or future expenses

Also consider step-up SIP.
Increase SIP by Rs.500 or Rs.1000 every year.
This helps your corpus grow faster.

Role of Lump Sum Investments
You invested Rs.15,000 lump sum.
That’s a good start.
But for lump sum, timing matters more.

Don’t invest lump sum in only one fund

Spread across 2–3 funds to reduce risk

Use STP from liquid fund to equity fund if amount is big

Use lump sum only when market gives correction

Better results come when lump sum is planned wisely.

Keep Monitoring Your Progress
Tracking investment performance is important.
If fund is underperforming for 2+ years, consider switching.
Don’t switch early based on short-term returns.

Do portfolio review every year with a Certified Financial Planner.
Review should cover:

Performance

Alignment with goals

Tax impact

Rebalancing need

Tax Planning for SIP and Lump Sum
Your equity mutual fund gains will be taxed as follows:

LTCG above Rs.1.25 lakh taxed at 12.5%

STCG taxed at 20%

So, keep eye on tax while redeeming.
Plan redemptions as per tax rules and goal timing.

Debt fund gains are taxed as per your tax slab.
This matters if you add hybrid or debt funds later.

Your Certified Financial Planner can help structure exit tax-efficiently.

What You Can Do Next
Here is what you should now focus on:

Increase monthly SIP to minimum Rs.5000

Split SIP across 2–3 fund categories

Build emergency fund of 3–6 months expenses

Buy term insurance if not yet done

Avoid insurance-cum-investment plans like ULIP or LIC for returns

Review your portfolio every year with professional help

If you have any LIC or ULIP, do surrender and reinvest in mutual funds.
They give low return and poor flexibility.

Finally
Starting early is your biggest strength.
You have made a promising beginning.
Now your focus must shift to structure, growth, and consistency.

Mutual funds are great for long-term goals.
But they need strategy and regular review.

Avoid direct funds and index funds unless guided by a professional.
Go with regular plans and a Certified Financial Planner for better tracking.
Your portfolio needs clear direction, proper risk control, and yearly review.

By doing this, you can build strong wealth in next 15–20 years.
Let your investments support your dreams, not just generate returns.
Money grows best when guided with purpose and wisdom.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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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