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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jul 21, 2022

Mutual Fund Expert... more
Rijuta Question by Rijuta on Jul 21, 2022Hindi
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I am 34 years old, a beginner in mutual fund & have recently started to invest in MF through SIP mode @2000/- each in below 04 funds: 

    2. Also I want to increase SIP amount, please suggest me best fund (s) for high return

  1. Nippon India Growth Fund-Growth Plan -- Growth Option
  2. Mahindra Manulife Multi Cap Badhat Yojana -- Regular Growth
  3. Kotak India EQ Contra Fund –Growth (Regular Plan)
  4. Invesco India Large Cap Fund- Growth

 It is requested that:

1. Kindly review my portfolio and suggest if these funds are OK or I should go for other funds. If so, please suggest me best funds.

Ans: This is OK

The schemes that you may consider are as under

- Samco Flexi Cap Fund - Growth

- Hdfc Index Fund - Sensex Plan - Growth

- Parag Parikh Flexi Cap Fund- Growth

- Uti Mnc Fund - Growth Plan

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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Ramalingam

Ramalingam Kalirajan  |8620 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

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I am 43 years old and a salaried person. Started in SIP in 2018. Kindly suggest about the funds. Following are my current mutual fund investments: 1) Franklin India Prima fund Rs.1000 2) Invesco India Contra Fund Rs.6000 3) Kotak flexicap fund Rs.4000 4) Mirae Large & midcap fund Rs.2000 5) Axis Bluchip fund 3500 6) Sbi Banking & financial service fund Rs.3500 7) Axis Small cap fund Rs.5000. All i have monthly SIP. please suggest me if any changes require.
Ans: It's great to see that you've started investing in mutual funds through SIPs. Here are some suggestions regarding your current mutual fund investments:

• Diversification: You have a good mix of funds across various categories, which is essential for diversification. It's important to spread your investments across different sectors and market capitalizations to reduce risk.

• Review Performance: Periodically review the performance of your funds to ensure they are meeting your expectations and performing in line with their peers and benchmarks.

• Consider Your Goals: Reflect on your financial goals, risk tolerance, and investment horizon to determine if your current funds align with your objectives. If you have specific goals such as retirement planning or wealth accumulation, consider adjusting your portfolio accordingly.

• Evaluate Fund Managers: Assess the track record and expertise of the fund managers managing your investments. Look for consistency in performance and a clear investment strategy aligned with your goals.

• Stay Informed: Keep yourself updated with market trends, economic developments, and changes in regulations that may impact your investments. Stay connected with your financial advisor or conduct your research to make informed decisions.

• Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) or a qualified financial advisor to get personalized advice based on your financial situation and goals. They can provide valuable insights and recommendations tailored to your needs.

Overall, while your current mutual fund portfolio appears well-diversified, it's essential to periodically review and adjust your investments based on changes in your financial situation and market conditions. By staying disciplined and informed, you can work towards achieving your financial goals effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |8620 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 18, 2024

Asked by Anonymous - Nov 18, 2024Hindi
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Hi Gurus , Finally last month I have started my investment in MF thru sip in following funds: 1. Parag Parikh Flexi Fund Rs 5000. 2. Motilal Oswal Mid Cap Fund - Rs 10000. 3. Nippon India Muti cap fund- Rs 5000. 4. Nippon India Small Cap Fund- Rs 10000 5. Quant small cap fund -Rs 5000. Further I can spend 10000 more thru sip and suggest good funds for that. Also please note that the above investment is in regular thru ICICI and for retirement purpose. My current age is 45 years. Please suggest about my portfolio and asset allocations.
Ans: Your portfolio demonstrates diversification across flexi-cap, mid-cap, multi-cap, and small-cap categories, which is a good starting point for long-term growth. However, there are areas for improvement to enhance risk management and alignment with your retirement goals:

Observations
Overexposure to Small-Cap Funds:

30% of your SIPs are allocated to small-cap funds (Rs 15,000 out of Rs 50,000).
Small-cap funds are volatile and risky, especially for someone closer to retirement. Reducing this exposure is advisable.
Balanced Allocation Missing:

There’s no allocation to hybrid or large-cap funds, which offer stability.
For a retirement-focused portfolio, balancing risk and stability is essential.
Fund Overlap Risk:

Nippon India Multi Cap Fund and Nippon India Small Cap Fund could have overlapping holdings, which might reduce overall diversification.
Good Use of Regular Plans:

Regular plans ensure you receive ongoing guidance from your Mutual Fund Distributor (MFD) or Certified Financial Planner (CFP). This is beneficial for monitoring and rebalancing.
Suggested Asset Allocation
Given your retirement horizon and age (45 years), a balanced approach between equity and debt is prudent. Consider the following allocation:

Equity Funds (70%): Growth-oriented funds, primarily large-cap, flexi-cap, and mid-cap funds, with reduced small-cap exposure.
Debt Funds (30%): Stability-focused funds, such as short-duration or dynamic bond funds, to reduce portfolio volatility.
Suggested Portfolio Changes
Reduce Small-Cap Exposure:

Maintain one small-cap fund, such as Nippon India Small Cap Fund (Rs 10,000 SIP). Exit Quant Small Cap Fund to reduce overlap and risk.
Introduce a Large-Cap Fund:

Add Rs 5,000 to a large-cap fund like SBI Bluechip Fund or ICICI Prudential Bluechip Fund for stability.
Add a Hybrid Fund for Stability:

Use the additional Rs 10,000 to invest in a hybrid fund like HDFC Balanced Advantage Fund or ICICI Prudential Balanced Advantage Fund. These funds offer a mix of equity and debt for lower volatility.
Monitor Multi-Cap Fund Performance:

Keep an eye on Nippon India Multi Cap Fund. If underperformance persists, consider switching to a better-performing multi-cap fund, such as Kotak Multi Cap Fund.

Recommended SIP Allocation (Post Changes)
Flexi-Cap Fund: Continue investing Rs 5,000 in Parag Parikh Flexi Cap Fund for diversified growth across market caps.

Mid-Cap Fund: Maintain Rs 10,000 SIP in Motilal Oswal Mid Cap Fund to capture mid-cap growth potential.

Multi-Cap Fund: Retain Rs 5,000 in Nippon India Multi Cap Fund but monitor its performance. Consider switching if it underperforms consistently.

Small-Cap Fund: Keep Rs 10,000 SIP in Nippon India Small Cap Fund and exit Quant Small Cap Fund to reduce overlap and risk.

Large-Cap Fund: Add Rs 5,000 in a stable large-cap fund such as SBI Bluechip Fund or ICICI Prudential Bluechip Fund for consistent returns with lower volatility.

Hybrid Fund: Allocate Rs 10,000 to a balanced advantage fund such as HDFC Balanced Advantage Fund or ICICI Prudential Balanced Advantage Fund for a mix of equity and debt stability.

General Suggestions
Review Portfolio Annually:
Regularly assess fund performance and rebalance to ensure alignment with your retirement goals.

Shift to Debt Gradually:
Start increasing debt exposure around age 50 to reduce portfolio volatility closer to retirement.

Emergency Fund and Insurance:
Maintain an emergency fund covering 6–12 months of expenses and ensure adequate health and term insurance coverage.

Professional Advice:
Continue investing through a reliable MFD or CFP to adapt your portfolio as per changing market conditions and personal goals.

Final Insights
Your portfolio is promising but needs adjustments to balance growth and risk. Reducing small-cap exposure and introducing large-cap and hybrid funds will add stability and align your investments with your retirement vision.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8620 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2025

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I am 40 year old currently i am invest SIP 13 K in different Mutual fund 1)kotak Emerging Equity fund 2) Parag parikh flexi cap fund 3) Axis Blue chip Fund 3) ICICI Prudential Innovation Fund 4) ICICI Prudential Manufacturing Fund 5)Bajaj Finserv Flexi cap fund 6) Mahindra Manulife small cap fund 7) Motilal oswal small cap fund, this all funds are good ? My plan is More 7000 invest in SIP please suggest other mutual funds for batter return in future?
Ans: Your current SIP of Rs. 13,000 is spread across seven different funds. Let's assess your existing portfolio and provide suggestions for optimizing your investments.

Assessment of Existing Mutual Fund Portfolio

Assessment of Existing Mutual Fund Portfolio
1. Kotak Emerging Equity Fund

This is a mid-cap fund.

It has delivered strong long-term returns.

Suitable for investors with a high-risk appetite.

2. Parag Parikh Flexi Cap Fund

A flexi-cap fund with a diversified portfolio.

It has consistently outperformed its benchmark.

Ideal for long-term wealth creation.

3. Axis Bluechip Fund

A large-cap fund focusing on blue-chip companies.

Provides stability during market volatility.

Suitable for conservative investors.

4. ICICI Prudential Innovation Fund

A thematic fund focusing on innovative companies.

Higher risk due to sector concentration.

Recommended for investors with a strong risk appetite.

5. ICICI Prudential Manufacturing Fund

Focuses on the manufacturing sector.

Subject to cyclical market trends.

Suitable for investors who can tolerate sector-specific risks.

6. Bajaj Finserv Flexi Cap Fund

A relatively new flexi-cap fund.

Limited performance history.

Investors should monitor its performance closely.

7. Mahindra Manulife Small Cap Fund

A small-cap fund with potential for high returns.

Higher volatility compared to large-cap funds.

Suitable for long-term investors.

8. Motilal Oswal Small Cap Fund

Another small-cap fund in your portfolio.

Having multiple small-cap funds increases risk.

Consider consolidating to manage risk better.

Suggestions for Additional SIP of Rs. 7,000
1. Avoid Overlapping Fund Categories

You already hold two small-cap funds.

Avoid adding more in the same category.

Instead, choose different types for better balance.

2. Add a Balanced Advantage Fund

Balanced advantage funds adjust equity and debt mix.

They are useful in volatile markets.

Good for long-term wealth creation.

3. Add a Consistent Mid-Cap Fund

One more mid-cap fund can balance growth and risk.

Choose a fund with strong past records.

Ensure low overlap with existing holdings.

4. Do Not Add Another Thematic Fund

You already hold two sector-specific funds.

Avoid adding more thematic funds now.

These funds are more risky and less predictable.

5. Prefer Actively Managed Regular Funds

Regular plans come with professional guidance.

A Certified Financial Planner and MFD monitors fund performance.

This adds discipline and structure.

6. Avoid Index Funds

Index funds blindly follow the index.

They do not protect from downsides.

Actively managed funds have better flexibility and research backing.

7. Avoid Direct Mutual Funds

Direct funds lack personalised review and guidance.

MFDs with CFP credentials help create goal-based portfolios.

They offer risk management and fund selection support.

8. Use STP or Lumpsum for Year-End Bonus

If you get bonus or surplus, don’t hold it in savings.

Invest lumpsum in low-risk debt fund.

Set up STP to shift to equity gradually.

Other Key Suggestions
1. Set Clear Investment Goals

Define goals like child education, retirement, or home renovation.

Each SIP should align with one goal.

Time horizon helps in selecting right category.

2. Track and Review Funds Every Year

Don’t stop SIPs due to short-term loss.

Review all funds once a year.

Remove consistent underperformers only after 3 years.

3. Manage Tax Efficiently

Equity fund LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG taxed at 20%.

Plan withdrawals smartly for tax efficiency.

4. Avoid Too Many Funds

Seven to eight funds are enough.

Too many funds create overlap and confusion.

Focus on quality, not quantity.

5. Do Not Chase Recent High Performers

Choose funds with long-term consistency.

Past year performance can mislead.

Select based on long-term stability and risk-adjusted returns.

6. Avoid Investment-Linked Insurance

If holding LIC or ULIP, assess its performance.

Most traditional plans give poor returns.

If returns are low, surrender and shift to mutual funds.

7. Emergency Fund Is Must

Keep 6 months of expenses in liquid form.

Helps avoid breaking SIPs during emergencies.

Keep it in liquid or ultra-short-term debt funds.

Finally
Your SIP journey is headed in the right direction.

You have chosen diversified categories across funds.

But small adjustments can help you improve outcomes.

Limit exposure to thematic and small-cap schemes.

Invest new SIP in balanced or mid-cap category.

Regular monitoring and goal tracking are important.

Use MFD with CFP credential for guidance and review.

Rebalancing once in a year will control risk.

Always link your SIPs to financial goals.

Stay focused on long-term and avoid panic in short term.

Avoid crowding your portfolio with too many similar funds.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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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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