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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Jun 07, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Sarath Question by Sarath on Jun 06, 2023Hindi
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I am 42 yrs old and risk taking investor. Below are my SIPs each of 10k per month,please suggest if any changes Nippon India small cap fund Parag Parikh flexi cap Canara robeco bluechip UTI nifty next 50 index fund

Ans: Hello Sarath and thanks for writing to me. You can continue investing in Nippon India Small Cap Fund, PPFAS Flexi Cap Fund and Canara Robeco Bluechip Fund.

You can consider pausing SIPs in UTI Nifty Next 50 and instead consider starting SIP in Edelweiss NIFTY 100 Quality 30 Index Fund.
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  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 2024

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Hi, I am 49 Yr old having below SIP's presently. These are more than 5Yr old and in continuation. Pls advise if there is any change require. 1. Quantum Equity Fund of Funds-5K 2.ICICI Pru Technology Fund-5K 3.ICICI Pru Bluechip Fund-10K 4.Quantum Long term Equity Fund-7K 5.Nippon India Mutlicap Fund -4K 6.Birlasunlife Frontline Equity Fund-5K 7. Mirae Asset Emerging Bluechip Fund- 5K 8. SBI Bluechip Fuind-2.5K 9. SBI Magnum Midcap fund-2.5K 10. ICICI Pru Value Discovery Fund-5K Thanks Mahesh
Ans: It's great that you've been consistent with your SIPs over the years. However, it's always a good idea to review your portfolio periodically to ensure it aligns with your current financial goals and market conditions. Here are some suggestions:

Diversification: Ensure your portfolio is well-diversified across different asset classes and investment styles to mitigate risk. Consider adding exposure to debt or international funds if your portfolio is predominantly equity-focused.

Performance review: Evaluate the performance of each fund relative to its benchmark and peers. If any fund consistently underperforms or doesn't meet your expectations, consider replacing it with a better-performing alternative.

Cost analysis: Assess the expense ratios of your funds and compare them with similar funds in the market. Lower expense ratios can enhance your returns over the long term.

Risk tolerance: Reassess your risk tolerance and adjust your portfolio accordingly. As you approach retirement age, you may want to gradually shift towards more conservative investments to preserve capital.

Consult a financial advisor: Consider seeking professional advice from a financial advisor who can provide personalized recommendations based on your specific financial situation and goals.

By periodically reviewing and adjusting your SIP portfolio, you can ensure that it remains optimized for your financial objectives and market conditions.

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

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Hi I m 43 years old and have SIP in following M.F 1. Quant small cap fund direct growth 50000, 2. ICICI PRUDENTIAL SMALL CAP DIRECT 50000, 3. AXIS S&P 500 ETF 50000, 4. QUANT HEALTH CARE 50000, 5. HDFC SMALL CAP 30000, 6. ICICI PRUD. BHARAT 22 FOF 30000, 7. NIPPON INDIA SMALL CAP SIP 5000 MONTHLY, MOTILAL OSWAL MIDCAP 5000 MONTHLY, QUANT MICAP 5000 MONTHLY.
Ans: Assessment of Current Mutual Fund Portfolio for Long-term Growth

Portfolio Overview:

Your current mutual fund (MF) portfolio consists of a mix of small-cap, mid-cap, sectoral, and ETF funds, indicating a diversified investment approach. Here's an analysis of each fund:

Quant Small Cap Fund (Direct Growth):

Small-cap funds offer high growth potential but come with increased volatility.
Your substantial investment in this fund reflects your risk appetite and growth objectives.
ICICI Prudential Small Cap Fund (Direct):

Similar to the Quant Small Cap Fund, this fund aims for capital appreciation from small-cap stocks.
Investing in multiple small-cap funds adds diversification but requires careful monitoring due to volatility.
Axis S&P 500 ETF:

ETFs provide exposure to top U.S. companies, offering diversification and stability.
This fund adds international exposure to your portfolio, hedging against domestic market risks.
Quant Healthcare Fund:

Sectoral funds focus on specific industries, offering potential growth opportunities.
Healthcare funds can benefit from industry-specific tailwinds but may also face regulatory and market risks.
HDFC Small Cap Fund:

Another small-cap fund in your portfolio, contributing to high-growth potential.
This fund's performance should be monitored closely due to the inherent volatility of small-cap stocks.
ICICI Prudential Bharat 22 FOF:

FOFs invest in a basket of stocks mirroring an underlying index, providing diversification.
Bharat 22 FOF offers exposure to a diversified portfolio of public sector enterprises and other blue-chip stocks.
Nippon India Small Cap SIP, Motilal Oswal Midcap, Quant Midcap:

Monthly SIPs in small and mid-cap funds demonstrate a focus on high-growth segments of the market.
These funds offer the potential for capital appreciation over the long term but come with increased risk.
Portfolio Assessment:

Your MF portfolio reflects a high-risk, high-growth investment strategy, suitable for long-term wealth creation. However, the heavy allocation to small-cap and mid-cap funds may expose your portfolio to higher volatility. Here are some recommendations:

Diversification: Consider rebalancing your portfolio to include a mix of large-cap and multi-cap funds for stability and risk mitigation.
Regular Review: Monitor the performance of individual funds and consider reallocation if any underperform consistently.
Asset Allocation: Assess your risk tolerance and adjust your asset allocation accordingly to maintain a balanced portfolio.
Exit Strategy: Define exit criteria for each fund to avoid emotional decision-making during market fluctuations.
Conclusion:

Your MF portfolio is well-aligned with your high-risk appetite and long-term investment horizon. By diversifying across market segments and regularly reviewing your portfolio, you can work towards achieving your wealth creation goals over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

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Hi I m 43 years old and have SIP in following M.F 1. Quant small cap fund direct growth 50000, 2. ICICI PRUDENTIAL SMALL CAP DIRECT 50000, 3. AXIS S&P 500 ETF 50000, 4. QUANT HEALTH CARE 50000, 5. HDFC SMALL CAP 30000, 6. ICICI PRUD. BHARAT 22 FOF 30000, 7. NIPPON INDIA SMALL CAP SIP 5000 MONTHLY, MOTILAL OSWAL MIDCAP 5000 MONTHLY, QUANT MICAP 5000 MONTHLY.
Ans: Assessing Your Mutual Fund Portfolio for Long-Term Growth

Diversification Analysis:

Your mutual fund portfolio reflects a diverse mix of funds across various categories and themes. Let's evaluate each category's suitability for your financial goals and risk appetite.

Evaluation of Fund Choices:

Small Cap Funds:

Quant Small Cap Fund, ICICI Prudential Small Cap, and Nippon India Small Cap SIP offer exposure to small-cap companies with high growth potential.
Small caps tend to be more volatile but can deliver superior returns over the long term.
Mid Cap Funds:

Motilal Oswal Midcap and Quant Midcap provide exposure to mid-sized companies poised for growth.
Mid caps offer a balance between growth potential and risk compared to small caps.
Large Cap and Index Funds:

Axis S&P 500 ETF offers exposure to the top 500 US companies, providing diversification and stability.
ICICI Prudential Bharat 22 FOF invests in a basket of Indian public sector enterprises and private sector companies.
Sectoral and Thematic Funds:

Quant Health Care focuses on the healthcare sector, offering potential growth opportunities.
HDFC Small Cap Fund invests in small-cap companies and may provide higher returns over the long term.
Portfolio Adjustment and Future Strategy:

Review Investment Goals:

Assess whether your current investment allocation aligns with your financial objectives, risk tolerance, and time horizon.
Consider rebalancing your portfolio if necessary to ensure it remains in line with your goals.
Risk Management:

Given your age of 43 years, ensure that your portfolio strikes the right balance between growth potential and risk mitigation.
Review the concentration of small and mid-cap funds, which tend to be more volatile.
Performance Monitoring:

Regularly monitor the performance of individual funds against their benchmarks and peer group.
Evaluate the consistency of returns and the fund manager's track record in delivering results.
Asset Allocation:

Consider diversifying across asset classes such as equities, debt, and other alternative investments to reduce portfolio risk.
Reassess the allocation to small and mid-cap funds to ensure adequate diversification.
Conclusion:

Your current mutual fund portfolio demonstrates a well-diversified approach to wealth creation. However, it's essential to periodically review and adjust your investments based on changing market conditions and financial goals. Consider consulting with a Certified Financial Planner for personalized advice tailored to your specific needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

Asked by Anonymous - May 14, 2024Hindi
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Hello sir I am Praveen my monthly sip in 3 fund UTI nifty 50 index fund 2200 parag parekh flexi cap 4100 and Kotak small cap 2000 please suggest me these fund are good or any changes and our suggestion required
Ans: Praveen. Let's review your current SIP investments in UTI Nifty 50 Index Fund, Parag Parikh Flexi Cap Fund, and Kotak Small Cap Fund to ensure they align with your financial goals and risk tolerance.

Current Portfolio Analysis
UTI Nifty 50 Index Fund: This fund provides exposure to the top 50 companies in India and aims to replicate the performance of the Nifty 50 Index. It offers diversification and stability.

Parag Parikh Flexi Cap Fund: Known for its flexible investment approach, this fund invests across market capitalizations and sectors. It emphasizes long-term growth potential and has a track record of consistent performance.

Kotak Small Cap Fund: Small-cap funds like Kotak Small Cap Fund invest in stocks of small-sized companies with high growth potential. They can offer higher returns but come with increased volatility.

Recommendations and Suggestions
Your current selection reflects a balanced approach with exposure to large-cap, flexi-cap, and small-cap segments.
UTI Nifty 50 Index Fund provides stability, while Parag Parikh Flexi Cap Fund and Kotak Small Cap Fund offer growth potential.
Consider reviewing your risk tolerance and investment horizon to ensure it aligns with the funds' objectives.
Potential Changes and Adjustments
Review Risk Tolerance: Assess your risk tolerance to determine if the allocation to small-cap funds is suitable for your comfort level. Small-cap funds can be volatile, so ensure you're prepared for fluctuations.

Diversification: Consider diversifying across different fund categories to spread risk. Adding a Mid-cap or Large & Mid-cap fund could enhance diversification.

Performance Evaluation: Monitor the performance of your funds regularly and compare them against their benchmarks and peers. If any fund consistently underperforms, consider switching to a better-performing alternative.

Consultation with a Certified Financial Planner (CFP)
Seeking advice from a qualified CFP can provide personalized recommendations based on your financial goals, risk tolerance, and investment horizon.
A CFP can help optimize your portfolio and ensure it remains aligned with your objectives.
Conclusion
Your current SIP investments reflect a diversified approach with exposure to different segments of the market. Consider reviewing your risk tolerance and diversification strategy to ensure it meets your long-term financial goals. Consulting with a CFP can provide valuable insights and help fine-tune your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |431 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 22, 2024

Asked by Anonymous - Nov 22, 2024Hindi
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A bit long story I'm 21 student preparing for medical competative entrance exam for past 3 years (21-24).2 year ago this phase I was in a long distance relationship for 4 months with a girl I met in my class .But it didn't last long due to the problems created due to distance as she couldn't understand myself and I couldn't understand herself.so there was a misunderstanding and I couldn't hold on as I was in heavy pressure by exams and financial problems.so I couldn't handle and I felt like too early and broke up with her by losing my mind.she was completely disappointed as I didn't speak to her for more than an year due to one more year preparation.i missed her very much but I didnt tell her.I missed govt seat in border mark and the same year she got into a relationship with another guy in her class.i don't blame her. But I feel like my entire life is shattered and I couldn't move on from that girl till now.I couldn't concentrate on my career too.im kind of person who is always confident in all aspects but I have totally lost my mind .I can see that in an danger situation as age is running and family pressure, everyone of my classmates are far ahead of me I couldn't withstand this situation and couldn't make proper decision in any aspect. Mam please help me out.
Ans: Dear Anonymous,
I understand your concerns. The first step is to focus on moving on; she has, and you should too. Prioritize your career, your family, and your future. Next, what has happened to your career progress has already happened. It's unfortunate, but there's no way to change that. But give yourself a second chance; work harder and achieve greater things than you even imagined before. Trust me, you are not the only person who is standing in a situation like this. Many have, and many more will. But the ones who have passed this time will give you the same advice that I did.

Best Wishes.

...Read more

Milind

Milind Vadjikar  |682 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 22, 2024

Asked by Anonymous - Nov 13, 2024Hindi
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Sir, I am 40yrs old. Having monthly takehome salary of 1.1 lakh and rental income of 36000. My investment are 2 flats worth of 1cr. 4 plots in Bhubaneswar worth of 2crs. EPF balance 50 lakh, LIC policies worth of 16 lakhs, NPS worth of 10 lakhs. My monthly saving commitments are - EPF (employee+employer) 28000 NPS 15000 MF 7500 Gold scheme 5000 Financial burden - HL emi of 24000 Monthly expanses 50000 I would like to retire at 50. Please advise for retirement plan with life expectancy of 80yrs.
Ans: Hello;

The value of your investments after 10 years;

A. EPF Corpus+Contribution: 1.6 Cr
B. NPS Corpus+Contribution: 53 L
C. MF(sip) + Gold(sip): 25 L
D. Real estate (land): 3.26 Cr

So sum of A, C & D gives us a corpus of 5.11 Cr

Since you will withdraw NPS before 60 age 80% of corpus will go into annuity while 20% will be available to you.

So you may expect monthly income of around 21 K from annuity(42.4 L).

Balance 10.6 L get added to 5.11L taking your total corpus to ~ 5.2 Cr.

If you invest 5 Cr in a conservative hybrid debt fund and do a SWP at the rate of 3%, you may expect a monthly income of around 1.1 L(post-tax).

Add your monthly rental income of 36 K(No growth factored) and annuity income of 21 K to this and you have total monthly income of 1.67 L after 10 years.

Your current monthly expenses of 50 K after 10 years would be around 90 K and 1.6 L after 20 years.

Considering return of around 7-7.5% from the conservative hybrid debt fund you will still generate inflation adjusted return at 3% SWP after 80 years of age.

Assumptions:
Inflation rate-6%
Return from EPF-8%
Return from NPS-9%
Return from MF-10%
Return from gold-7%
Return from Land-5%
Annuity rate-6%

The spare flat is not considered in this because it will continue to yield you rental income in retirement.

Since real estate(land) returns may fluctuate over 10 years suggest to increase MF sip(6X) as a back-up, also in this case you may decide to retain & invest in NPS upto 60 age.

Of course MF returns are also not assured but you are improving the odds by backing two appreciable assets(RE & equity) over long-term.

Happy Investing;
X: @mars_invest

...Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Money
My age 62, male, getting rental income Rs. 90k nett. Already subscribing 12.5k in PPF for the past 2 1/2 years. No other investments. My target is 5 crores in 10 years. I already have Mediclaim Rs.50 lakhs for me & wife . Please advice me what to do.
Ans: Your current financial foundation is strong and shows promise:

A rental income of Rs. 90,000 per month provides consistent and predictable cash flow. This stability can serve as the backbone for your investment strategy.

PPF contributions of Rs. 12,500 per month for 2.5 years reflect disciplined saving. However, its returns may be insufficient to achieve a high-growth target like Rs. 5 crores in 10 years.

A robust Mediclaim policy of Rs. 50 lakhs for you and your wife ensures adequate health coverage. This safeguard allows you to focus on wealth-building without worrying about medical emergencies.

Despite these positive factors, achieving Rs. 5 crores in 10 years requires a carefully crafted and growth-oriented strategy.

Defining and Prioritising Your Financial Goals
Achieving Rs. 5 crores is ambitious yet achievable with a focused approach:

Define this target as your primary financial goal over the next decade.

Break it into manageable milestones: for example, Rs. 50 lakhs every 1-2 years in cumulative investments and growth.

Prioritise high-return investments that align with your risk tolerance and financial capacity.

Optimising Existing PPF Contributions
While PPF is a secure investment, its growth potential is limited:

Returns: PPF currently offers an interest rate of approximately 7-7.5%, which barely outpaces inflation.

Contribution Review: Consider capping your PPF contributions at Rs. 1.5 lakh annually (to utilise the Section 80C benefit). This ensures that excess funds are redirected to higher-return investments.

PPF can serve as a low-risk component of your portfolio but should not dominate your investment strategy.

Building a Diversified Investment Portfolio
A diversified portfolio will provide a balance of risk and reward. Include the following components:

1. Equity Mutual Funds for Growth
Equity mutual funds are essential for achieving high returns over the long term:

Large-Cap Funds: These invest in established companies and offer stability with moderate growth. They are ideal for a portion of your portfolio to reduce risk.

Multi-Cap or Flexi-Cap Funds: These provide exposure to companies of all sizes, offering growth and diversification.

Sectoral and Thematic Funds: Avoid these unless you have a high risk tolerance and understand market dynamics.

ELSS Funds: These not only provide tax savings under Section 80C but also deliver market-linked returns.

Why Avoid Index Funds?

Index funds may offer simplicity and lower expense ratios, but they lack flexibility. They cannot adapt to market conditions or capitalise on outperforming sectors. Actively managed funds, on the other hand, have the potential to outperform the market, especially in a developing economy like India.

Start with a Systematic Investment Plan (SIP) in selected funds to build wealth steadily.

2. Debt Mutual Funds for Stability
Debt funds add stability to your portfolio and reduce overall risk:

Choose funds with low credit risk and moderate duration to ensure safety and predictable returns.

Debt funds are suitable for short- to medium-term goals or as a fallback during market corrections.

Taxation Note: Both LTCG and STCG on debt funds are taxed as per your income tax slab. This should be factored into your planning.

3. Balanced Advantage Funds
Balanced advantage funds (BAFs) dynamically allocate assets between equity and debt. They:

Provide exposure to equity while minimising downside risk.

Offer a suitable option for someone nearing retirement but seeking growth.

4. Gold Investments for Diversification
Allocate a small portion (5-10%) of your portfolio to gold:

Gold serves as a hedge against inflation and currency depreciation.

Choose gold ETFs or sovereign gold bonds for ease of liquidity and better returns.

Emergency Fund Creation
Having an emergency fund is non-negotiable:

Maintain at least 6-12 months of expenses in liquid investments like liquid mutual funds or high-interest savings accounts.

This ensures liquidity for unforeseen events without disturbing your long-term investments.

Focus on Retirement Planning
At 62, balancing growth and safety becomes critical:

Estimate your monthly retirement expenses, considering inflation over the next 10-15 years.

Your target of Rs. 5 crores should primarily serve as your retirement corpus.

Allocate assets thoughtfully:

60-70% in equity funds for growth.
30-40% in debt funds for stability.
Periodically rebalance your portfolio to maintain this allocation.

Strategic Tax Planning
Tax efficiency can significantly impact your returns:

Continue using Section 80C to its full potential, including ELSS funds and PPF.

Consider the National Pension System (NPS) for an additional Rs. 50,000 deduction under Section 80CCD(1B).

Be mindful of the new taxation rules for mutual funds:

Equity Mutual Funds: LTCG above Rs. 1.25 lakh is taxed at 12.5%; STCG at 20%.
Debt Funds: LTCG and STCG are taxed as per your income slab.
Consult a Certified Financial Planner to optimise your tax strategy.

Regular Portfolio Monitoring and Rebalancing
Investing is not a one-time activity:

Review your portfolio every six months or annually to track performance.

Rebalance your asset allocation periodically to align with your financial goals and risk appetite.

Stay committed to SIPs even during market downturns, as this ensures cost-averaging.

Additional Suggestions
Avoid Over-Reliance on PPF
While PPF is safe, it is not sufficient for wealth creation. Shift excess contributions to equity-based investments for better returns.

Avoid Direct Stocks
Direct equity investing requires time, expertise, and constant monitoring. It carries higher risk and may lead to losses without proper research. Instead, rely on equity mutual funds managed by professionals.

Avoid Mixing Insurance and Investments
Do not invest in ULIPs or endowment plans, as they offer suboptimal returns. Stick to pure insurance products for protection and mutual funds for growth.

The Role of a Certified Financial Planner
To achieve Rs. 5 crores, a well-crafted financial plan is essential. A Certified Financial Planner (CFP) can:

Analyse your current investments and recommend improvements.

Design a customised strategy tailored to your income, expenses, and goals.

Provide periodic reviews to ensure you stay on track.

Finally
Achieving Rs. 5 crores in 10 years is a realistic goal if you adopt a disciplined and diversified approach.

Optimise your PPF contributions and channel excess funds into higher-growth investments.

Build a diversified portfolio with equity and debt mutual funds.

Include a small allocation to gold and maintain an emergency fund.

Stay consistent with your SIPs and review your investments regularly.

Work with a Certified Financial Planner to create a personalised roadmap.

By following these steps, you can secure your financial future and meet your goals.

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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