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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 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
Asked by Anonymous - Apr 14, 2024Hindi
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Hi I am 42 currently I did SIP of 20k from last 3 years each 1. ELSS each 1k are 1.Axis long term equity 2.mirai asset 3.canara robeco 3.invesco India 4.parag parikh 2.Midcap funds - White Ock 1k 2.Invesco India multi cap fund 1k 3. Thematic fund - 1 Franklin India apportunity fund 5k 4. Multi asset allocation fund - Tata multi asset opp fund 5k 5. Flexi cap fund - 1.kotak multi asset allocator 1k 2.HDFC flexi cap fund 1k 6. Dynamic Asset allocator - Edelweiss balanced Adv 1k 7. Large & Mid cap - Axis growth apportunity fund 1k 8. Small cap fund - Nippon India 1k Suggest me I want invest another 5k

Ans: It's great to see your diversified investment approach through SIPs across various mutual fund categories. Considering your existing portfolio, here's a suggestion for investing an additional 5k:

Given your current allocation, you might want to consider adding to a category where you have relatively lower exposure. Since you already have investments in ELSS, Midcap, Thematic, Multi-Asset Allocation, Flexi Cap, Dynamic Asset Allocator, Large & Mid Cap, and Small Cap funds, you may consider adding to a fund category that complements your existing holdings.

Considering your investment style and the current market scenario, you might want to explore investing in a Balanced Advantage Fund or a Hybrid Equity-Oriented Fund. These funds dynamically allocate between equity and debt instruments based on market conditions, providing a balance of growth potential and downside protection.

Here's a suggested addition to your portfolio:

Balanced Advantage Fund: Invest the additional 5k in a reputable Balanced Advantage Fund that has a proven track record of managing market volatility and delivering consistent returns over the long term.
Ensure you research and select a fund that aligns with your risk tolerance, investment goals, and overall portfolio strategy. Additionally, regularly review your portfolio's performance and make adjustments as necessary to stay on track with your financial objectives.

Always remember to consult with a certified financial planner or investment advisor before making any significant changes to your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 22, 2024

Asked by Anonymous - Apr 20, 2024Hindi
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Sir I am 35 year old earning like 90 k per month invested 1 lakh in mutual fund Aditya Birla Sun Life psu equity fund and quant small cap fund direct . N 5 k sio for icic prudential infrastructure direct growth. .I wanna invest like 2o or 30 k but not sip once a time suggest some pls thanks in advance
Ans: I can help guide your lump sum investment choices based on your existing portfolio:

Current Portfolio:

Aditya Birla Sun Life PSU Equity Fund: This seems like a large or mid-cap public sector undertaking (PSU) focused fund.
Quant Small Cap Fund Direct: This suggests you have some exposure to smaller companies with higher growth potential but also higher risk.
ICICI Prudential Infrastructure Fund Direct Growth: This likely provides exposure to the infrastructure sector.
Considering Lump Sum Investment:

Align with Investment Goals: Do you have a specific goal in mind for this lump sum (short-term, long-term)?
Diversification: You already have some sectoral exposure. A lump sum investment could add further diversification or strengthen existing themes.
Options for Lump Sum:

Balance Equity Exposure: If comfortable with your current equity allocation, a balanced mutual fund could add debt for stability.
Focus on Specific Sector: If you believe a particular sector (technology, healthcare) has potential, consider a sectoral fund.
Large-Cap Fund: A large-cap fund could offer stability and diversification within equities.
Remember:

Research Before Investing: Regardless of the option you choose, research the fund thoroughly before investing.
Consider Risk Tolerance: Don't chase high returns without considering your risk tolerance.
Talk to a Financial Advisor:

A financial advisor can assess your risk profile and overall portfolio to suggest the most suitable lump sum investment option for your goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 12, 2024Hindi
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I'm 39 yr im investing in axis small cap HDFC small cap quant small cap bandhan sterling value fund bandhan elss tax saver dsp tax saver mirrae tax saver HDFC midcap motilal midcap pgim midcap quant active fund quant midcap SBI Magnum mid cap SBI contra ICICI debt and equity fund ICICI value discovery fund uti index fund sbi technology ICICI technology and tata digital some are in sips form and some as lumsum Pl advise me
Ans: You have a diversified investment portfolio that includes small cap, mid cap, value funds, ELSS tax savers, and sector-specific funds. While this diversification is good, there is a need to streamline and optimise your investments for better returns and risk management.

Assessing Your Current Portfolio
Small Cap Funds: Higher potential returns, but also higher risk.
Mid Cap Funds: Balanced growth and risk.
Value Funds: Focus on undervalued stocks with growth potential.
ELSS Funds: Provide tax benefits under Section 80C.
Sector-Specific Funds: Concentrated risk in specific sectors like technology.
Index Fund: Passively managed, low-cost, but limited in flexibility.
Recommendations for Improvement
Streamline Your Portfolio
Consolidate Holdings: Too many funds can dilute returns and complicate management.
Focus on Quality: Choose top-performing funds in each category.
Active vs. Index Funds
Disadvantages of Index Funds:

No Active Management: Lack of flexibility to respond to market changes.
Average Returns: Typically mirror the market index, leading to average performance.
Advantages of Actively Managed Funds:

Professional Expertise: Managed by experienced fund managers.
Better Returns: Potential to outperform the market with strategic investments.
Benefits of Investing Through MFD with CFP Credential
Professional Guidance: Tailored investment advice to align with your financial goals.
Regular Monitoring: Continuous oversight to ensure optimal performance.
Expertise: Access to the knowledge and experience of certified planners.
Suggested Strategy
Evaluate Current Holdings:

Performance Review: Assess the performance of each fund.
Risk Assessment: Determine the risk associated with each fund.
Rebalance Portfolio:

Reduce Overlap: Avoid investing in multiple funds with similar strategies.
Diversify Effectively: Maintain a balance between small cap, mid cap, and value funds.
Increase SIP Contributions:

Annual Increase: Raise SIP amount by 5-10% each year.
Benefit of Compounding: Higher contributions lead to substantial growth over time.
Allocate for Sector-Specific Investments:

Limit Exposure: Sector funds can be volatile. Limit to a small portion of your portfolio.
Focus on Growth Sectors: Invest in sectors with high growth potential.
Regular Review and Adjustments:

Quarterly Review: Monitor fund performance and market trends.
Annual Rebalancing: Adjust portfolio to maintain desired asset allocation.
Health and Emergency Fund
Emergency Fund: Keep at least 6 months of expenses in a liquid form.
Health Coverage: Ensure adequate health insurance coverage for unforeseen medical expenses.
Final Insights
To optimise your investments:

Streamline and Consolidate: Reduce the number of overlapping funds.
Focus on Active Management: Actively managed funds can provide better returns.
Increase SIP Contributions: Regularly increase your SIP investments.
Review and Rebalance: Regularly monitor and adjust your portfolio.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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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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