Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7332 Answers  |Ask -

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
Asked by Anonymous - Apr 15, 2024Hindi
Listen
Money

I am 42 years old and have been investing in SIPs since 2009 when i was 31 YO. My SIP include in 2 mid cap fund (Sundaram Midcap and HDFC Midcap Opportunities) of 4k, 2k in IDFC Flexi cap, 2k in Axis Small Cap, 1k in ABSLI ELSS. Periodic LUMPSUM investments. My investment horizon is till 60 yrs. Please suggest if its good enough or i need to review and add.

Ans: Your disciplined approach to SIP investing is commendable and sets a strong foundation for your financial future. Here's a comprehensive review and some suggestions:
1. Review Existing Portfolio: Evaluate the performance of your current SIPs against relevant benchmarks and peer funds. Ensure that the funds you've chosen have consistently delivered satisfactory returns and align with your risk profile and investment goals.
2. Diversification: While mid-cap and flexi-cap funds offer growth potential, consider diversifying your portfolio further. Include large-cap funds for stability and exposure to blue-chip companies. Additionally, explore thematic or sectoral funds to capitalize on emerging trends or sectors poised for growth.
3. Risk Management: Given your investment horizon until the age of 60, it's crucial to strike a balance between growth and stability. Allocate a portion of your portfolio to debt funds or hybrid funds to mitigate volatility and preserve capital, especially as you approach retirement age.
4. Regular Review: Periodically review your portfolio's performance and make necessary adjustments based on changing market dynamics, fund performance, and your evolving financial goals. Rebalance your portfolio if required to maintain your desired asset allocation.
5. Professional Guidance: Consider consulting with a Certified Financial Planner to assess your current financial situation, align your investment strategy with your long-term goals, and make informed decisions about portfolio optimization and asset allocation.
6. Asset Allocation: Ensure your asset allocation is in line with your risk tolerance and investment horizon. As you approach retirement age, gradually shift towards a more conservative allocation to safeguard your accumulated wealth.
7. Emergency Fund: While focusing on long-term investments, don't forget to maintain an adequate emergency fund to cover unforeseen expenses or financial emergencies without disrupting your investment portfolio.
Overall, your investment approach appears sound, but periodic reviews and adjustments may be necessary to ensure your portfolio remains optimized for achieving your long-term financial objectives.
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.
Money

You may like to see similar questions and answers below

Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jul 23, 2023

Ramalingam

Ramalingam Kalirajan  |7332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Asked by Anonymous - Sep 08, 2023Hindi
Listen
Money
Dear Sir, I am 51 years old. I have been investing in SIP for 3 years and planning to invest for coming 7 years. My Present SIPs are Axis Blue Chip Fund Regular Growth @2000/- Axis Mid Cap Regular Growth @2000/- Mirae Asset Emerging Fund Regular @2000/- UTI Flexicap Fund Regular Growth @2000/-, HDFC TOP 100 Regular Growth @2000/-. Any advise for the portfolio.
Ans: Your current SIP portfolio appears well-diversified across different categories like large-cap, mid-cap, and flexi-cap funds, which is good for long-term wealth creation. Since you have a 7-year investment horizon, you may consider the following suggestions:

Review Asset Allocation: Ensure your asset allocation aligns with your risk tolerance and financial goals. Since you're in your early 50s, you may want to tilt slightly towards more conservative options while still maintaining exposure to equities for growth potential.

Consider Adding Debt Funds: Given your age and investment horizon, consider adding debt funds to your portfolio to reduce overall risk. Debt funds can provide stability and income generation while complementing the growth potential of equity funds.

Regularly Monitor and Rebalance: Keep track of your portfolio's performance and periodically rebalance if needed to maintain your desired asset allocation. As you approach your investment goal, consider gradually shifting towards more conservative investments to protect your capital.

Seek Professional Advice: Consider consulting with a financial advisor who can provide personalized recommendations based on your specific financial situation, goals, and risk tolerance. They can help optimize your portfolio for better returns while managing risk effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |7332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 08, 2024Hindi
Listen
Money
Hi Team, I am 35 and have below SIPs. Please review them and let me know if i have to make any changes. Parag Pareikg flexi cap fund - 10000 Motilal Oswal S&P 500 index fund - 2500 Quant Small Cap Fund- 5000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Banking & Financial Services Fund- 2500. Focus is to continue SIP for longterm
Ans: It's great to see your commitment to investing for the long term. Let's review your current SIP portfolio and discuss if any adjustments are needed to align with your goals.

Evaluating Your SIPs
Your portfolio consists of a mix of equity funds focusing on different market segments. Here's a brief overview of each fund:

Parag Parikh Flexi Cap Fund (Rs. 10,000): Known for its flexible investment approach across market caps and sectors, providing diversification and potential for long-term growth.

Motilal Oswal S&P 500 Index Fund (Rs. 2,500): Provides exposure to the top 500 companies in the US stock market, offering diversification and growth potential in the world's largest economy.

Quant Small Cap Fund (Rs. 5,000): Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

PGIM India Mid Cap Opportunities Fund (Rs. 5,000): Focuses on mid-cap companies with strong growth prospects, offering potential for capital appreciation over the long term.

SBI Banking & Financial Services Fund (Rs. 2,500): Invests in companies operating in the banking and financial services sector, benefiting from the growth potential of the Indian financial industry.

Recommendations for Optimization
Your portfolio is well-diversified across different market segments, which is essential for long-term growth. However, here are a few suggestions to consider for further optimization:

Monitor Performance: Regularly review the performance of each fund and assess whether they continue to meet your investment objectives. Consider replacing underperforming funds or reallocating assets based on changing market conditions and your financial goals.

Assess Risk Tolerance: Ensure that your portfolio's risk level aligns with your risk tolerance and investment horizon. While small-cap and mid-cap funds offer higher growth potential, they also come with increased volatility. Make sure you're comfortable with the level of risk in your portfolio.

Consider International Diversification: While the Motilal Oswal S&P 500 Index Fund provides exposure to the US stock market, you may consider adding more international diversification to your portfolio. Explore options such as global equity funds or international index funds to broaden your investment horizon.

Review Sectoral Exposure: Given your investment in the SBI Banking & Financial Services Fund, be mindful of overexposure to a single sector. Monitor the fund's performance and consider diversifying across sectors to reduce concentration risk.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term growth. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Anu

Anu Krishna  |1410 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 25, 2024

Asked by Anonymous - Dec 17, 2024Hindi
Listen
Relationship
Hi Anu, I need some advice that’s a bit out of the ordinary. I’ve been married for 8 years, and my wife and I have recently been discussing investing in property together. The twist is, we have very different ideas on what to do with it. I’ve always been more of a numbers person—thinking about it as a solid financial investment. I want to buy something that will increase in value over time and add to our financial security. On the other hand, my wife sees it more as a home. She’s emotionally attached to the idea of a cozy, dream house, somewhere we can raise our family and enjoy life together. So, we’ve been butting heads a bit, as I’m leaning more towards an investment property in a growing area, while she’s looking for something more in line with what we want to live in now. It’s getting a little tense between us because I feel like she’s not seeing the financial side of things, and she thinks I’m too focused on money and not on our happiness. Is there a middle ground where we can both be happy?
Ans: Dear Anonymous,
Well, it's dream v/s practicality, yeah?
When you get to a stalemate situation like the one you and your wife are in, the best way is to go back to the Square A.
Start where you began when you married...list down what's important to each of you and somewhere in your case, it will lead not just to her wants and yours, but it will go back to money and financial prudence. When you hit this, come to an understanding as to how you will overcome this; it has to be mutually agreed upon. Then bring your current home buying issue and solve it just like the way you sorted your differences over finances. Try it...it will work...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Ramalingam

Ramalingam Kalirajan  |7332 Answers  |Ask -

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

Asked by Anonymous - Dec 24, 2024Hindi
Money
I am 47 yr old IT Professional. I have diversified my porfolio across MF - 60L , Direct Equity - 15 L, Gold (SGB - 20L, Physical - 50L) , Real Estate - 2 CR(Flat), Independent home (2.5CR) which fetching 30K Monthly Rental. EPF - 90L, NPS - 20 L, FD - 90L, Sukanya Samridhi for 2 Daughters - 14L Each till date. I am contributing upto 1.5 L monthly into NPS, Equity MF. My MF is diversified into Flexi, mid and small cap fund (Total 8 Funds in portfolio). I am looking to build retirement corpus of 8 Cr based on my current monthly expenses.
Ans: You have a well-diversified portfolio. It includes real estate, mutual funds, equity, gold, EPF, NPS, and FDs. This balance reflects thoughtful planning.

Your rental income of Rs. 30,000 adds stability. Contributions to Sukanya Samriddhi Yojana secure your daughters’ futures.

Your focus on NPS and diversified mutual funds is commendable. These build long-term wealth efficiently.

You aim for Rs. 8 crore as a retirement corpus. With careful adjustments, this is achievable.

Key Areas to Strengthen
1. Portfolio Consolidation

Your portfolio has eight mutual funds. This may lead to overlap and inefficiency.

Review these funds with a Certified Financial Planner. Ensure no duplication across asset categories.

Consider consolidating into 3–5 actively managed funds. This maintains diversification while improving focus.

2. Asset Allocation

Your portfolio is heavy in real estate and gold. These are illiquid investments.

Aim to rebalance toward financial assets like equity mutual funds. These provide liquidity and growth potential.

A Certified Financial Planner can assist in optimal asset reallocation.

3. Emergency Fund

Ensure liquid funds for 6–12 months of expenses.

This fund should not overlap with FDs or long-term investments.

Maintain this emergency fund in a liquid fund or savings account.

4. Mutual Fund Taxation

When selling mutual funds, consider capital gains tax:

Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.

Short-term gains are taxed at 20%.

Debt mutual funds are taxed as per your income slab.

Plan withdrawals with this tax implication in mind.

Actionable Strategies
1. Increase Equity Exposure

Your diversified mutual funds are strong.

Consider increasing equity mutual fund SIPs for long-term wealth.

Focus on flexi-cap, large-cap, and mid-cap funds for balanced growth.

Small-cap funds are volatile; limit exposure to 10–15%.

2. Optimise NPS Contributions

NPS is excellent for retirement. Its tax benefits under Sections 80C and 80CCD are helpful.

Invest up to Rs. 50,000 annually for additional tax savings.

However, review NPS as it locks in funds till retirement. Maintain flexibility elsewhere.

3. Rationalise FD Holdings

FDs are safe but offer low post-tax returns.

Shift a portion to debt funds for better returns and tax efficiency.

Debt funds balance portfolio risk without sacrificing liquidity.

4. Review Sukanya Samriddhi Yojana

Your contributions here are thoughtful. They offer assured returns for your daughters’ education.

Continue until the full maturity period. This ensures maximum benefit.

Retirement Planning
1. Expense Mapping

List all post-retirement expenses. Account for inflation at 6–7% annually.

Break these into essentials (medical, household) and discretionary (travel, hobbies).

Use this as a guide to calculate your future income requirement.

2. Corpus Building

Your current investments, including EPF and NPS, are solid.

Increase your mutual fund SIPs marginally to stay on track for Rs. 8 crore.

Continue Rs. 1.5 lakh monthly contributions strategically across financial instruments.

3. Health Coverage

Health insurance is critical post-retirement.

Review coverage for yourself and family. Ensure at least Rs. 50 lakh in coverage.

Consider adding a top-up plan for unforeseen medical costs.

Gold Portfolio Insights
Your gold portfolio is significant at Rs. 70 lakh.

SGBs are excellent for regular interest income and long-term growth.

However, physical gold is less efficient. Selling may involve lower liquidity and higher costs.

Convert a portion of physical gold into SGBs or financial assets.

Final Insights
You have made strong financial decisions so far.

Focus on reducing portfolio complexity and enhancing liquidity.

Rebalance your portfolio with a Certified Financial Planner. This ensures alignment with goals.

Stick to disciplined contributions toward NPS and mutual funds. This will help you reach Rs. 8 crore comfortably.

Ensure diversification without overextending into illiquid assets.

With this strategy, your retirement goals are well within reach.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Milind

Milind Vadjikar  |795 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Dec 24, 2024

Asked by Anonymous - Dec 24, 2024Hindi
Listen
Money
Hello i am almost 30 now I have invested around 40 lakhs in Market (mutual funds plus equity) 6 lakhs ppf maybe 2 lakhs pf I have parental property of combining around 2.5cr I have my parents helath insurance from a private insurance company, also covered by cghs health scheme,so no major worries about health expenses, for me i have 10lakhs health insurance Apart from this we have family pension also. As of now overall i have a monthly income of around 2-2.25 lakhs. I have a car a bike a scooty all valid for next 8-10 years What should be my goal amount for the retirement, i want it as early as possible As per the current scenario i am assuming i will live max till 75 years age. As of now i can invest 80-90k per month Yet to be married i assume i need atleast Lakhs per month as of now What should be the ideal amount with which i can retire
Ans: Hello;

Hope you have adequate term life insurance for yourself.

You may start a monthly sip of 90 K in a combination of pure equity mutual funds.

After 10 years your sip and lumpsum investment will grow into sums of 2.09 and 1.24 Cr respectively.

This adds upto 3.33 Cr. If you add your ppf and EPF corpus then this should add upto a sum of around 4 Cr.

If you invest this corpus in a conservative hybrid debt fund and do a SWP at the rate of 3.5%, you may expect a post tax monthly income of
1 L+.

As you get married your expenses will rise as also the need to plan for various other goals.

Therefore the decision to retire from regular 9-6 job should be backed up with alternate business plan or such other plan to monetize your hobbies that may yield income over atleast next 10-15 years.

Best wishes;

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x