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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jan 07, 2022

Mutual Fund Expert... more
Somnath Question by Somnath on Jan 07, 2022Hindi
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Money

I am 43 years old.

I am a government employee but do not have much bank balance.

I want to create wealth of Rs 1 crore in 17 years as a part of my retirement benefit.

At present, I am investing Rs 5,600 a month in these SIPs.

Please tell me whether the funds I have chosen are the right ones to provide wealth in the long term. 

Mutual Funds Plan type Amount
1. Axis ESG Equity Fund Growth Rs 1,000
2. Axis Bluechip Fund Growth Rs 500
3. Axis Midcap Fund Growth Rs 500
4. Kotak Small Cap Fund Growth Rs 1,000
5. UTI Flexi Cap Fund Growth Rs 500
6. PGIM India Flexi Cap Fund Direct Growth Rs 600
7. Principal Focused Multicap Fund Growth Rs 500
8. Invesco India Infrastructure Fund Growth Rs 500
9. DSP Quant Fund Growth Rs 500
10. IDFC Sterling Value Fund Growth Rs 500
11. Mirae Asset Emerging Blue Chip Fund Growth Rs 1,000

Ans: There are too many funds. Also, Rs 5,600 in 17 years may create 50 per cent of your target corpus.

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  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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Hello sir, i am 32 years old and just started a SIP investment of 7K per month for the following funds for wealth creation for next 10 - 15 years. Core portfolio (60%) 1. Parag Parikh flexicap fund - 1.5K 2. JM Flexicap - 2K 3. Navi Nifty 50 - 0.5K Satellite portfolio (40%) 1. Kotak Emerging Equity Fund - 0.8K 2. JM Midcap fund - 1K 3. Tata smallcap fund - 0.7K 4. Edelweiss midcap 150 momentum 50 - 0.5K Could please review and advise me whether the above funds is to be considered good. Please provide some suggestions if changes required.
Ans: Your SIP portfolio seems well-diversified across various categories of equity funds, which is a good approach for long-term wealth creation. Let's review each fund and provide some suggestions:

Core Portfolio (60%):

Parag Parikh Flexicap Fund: This fund follows a flexible investment approach across large, mid, and small-cap stocks. It's known for its quality stock selection and has delivered consistent returns over the years.
JM Flexicap Fund: Another flexi-cap fund, providing exposure to companies across market capitalizations. Ensure you review its performance and consistency compared to peers.
Navi Nifty 50: Investing in an index fund like Navi Nifty 50 provides exposure to India's top 50 companies. It's a low-cost option with a focus on large-cap stocks.
Satellite Portfolio (40%):

Kotak Emerging Equity Fund: This fund focuses on emerging companies with high growth potential. Review its performance and ensure it aligns with your risk appetite.
JM Midcap Fund: Mid-cap funds like JM Midcap can offer higher growth potential but come with higher volatility. Monitor its performance and risk closely.
Tata Smallcap Fund: Investing in small-cap funds can provide exposure to high-growth companies. Ensure you're comfortable with the risk associated with small-cap investing.
Edelweiss Midcap 150 Momentum 50: This fund follows a momentum-based investment strategy, focusing on mid-cap stocks showing positive price momentum. Understand its investment approach and risk profile.
Suggestions:

Monitor Performance: Regularly review the performance of your funds and ensure they're meeting your expectations. Consider replacing underperforming funds with better alternatives.
Risk Management: Given the higher allocation to mid-cap and small-cap funds in your portfolio, be prepared for higher volatility. Ensure your risk tolerance aligns with the risk profile of these funds.
Review Fund Selection: Consider diversifying across fund houses to reduce concentration risk. Also, consider adding an international equity fund or a debt fund for further diversification.
Long-Term Perspective: Stay focused on your long-term investment horizon and avoid making knee-jerk reactions based on short-term market movements.
Overall, your SIP portfolio appears well-structured for wealth creation over the next 10-15 years. However, regularly monitoring and reviewing your portfolio's performance is essential to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a financial advisor for personalized guidance based on your individual circumstances.

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Ramalingam

Ramalingam Kalirajan  |7201 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024

Asked by Anonymous - Aug 02, 2024Hindi
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Money
Hi Sir, I am 34 years old and a salaried person. Following are my SIP in mutual funds which I had started recently. 1) Quant Smallcap G (Growth)- Rs.5K 2) Quant ELSS G - Rs.5K 3) Quant Midcap G - Rs.5K 4) Quant Value G - Rs.6K 5) Quant Active G - Rs.5K 6) Quant Infrastructure G - Rs.5K 7) Tata Digital G - Rs.2.5K 8) HDFC Defence G - Rs.5K 9) Motilal Oswal Nifty Microcap 250 G - Rs.2.5K 10) Nippon India Power & Infrastructure G - Rs.4K I intend to invest for 15-20 years thus please suggest whether mentioned Funds are good for long term. I intend to generate corpus of INR.5 crores.
Ans: Assessing Your Current SIP Portfolio
Your SIP portfolio is quite diversified, which is a positive step towards achieving your goal. You’ve chosen a mix of funds, which shows your interest in different sectors. However, it's important to assess whether this diversification aligns with your long-term goal of generating Rs. 5 crores in 15-20 years.

Portfolio Evaluation
Sectoral Exposure:
Your portfolio has significant exposure to sectoral and thematic funds, such as infrastructure and defence. While these funds can perform well in certain market conditions, they also carry higher risk due to their sector-specific nature.

Over-diversification Risk:
You've invested in 10 different funds. This might lead to over-diversification, where the benefits of diversification are diminished. Managing and tracking too many funds can also become complex over time.

Need for Core Funds:
While you have thematic and sectoral funds, it's essential to have a strong foundation in core funds like large-cap or flexi-cap funds. These funds provide stability and long-term growth, essential for achieving your Rs. 5 crore target.

Recommendations for Improvement
Focus on Core Funds:
Consider reallocating some of your SIPs to core funds that provide consistent growth. Actively managed flexi-cap or large-cap funds can offer better risk-adjusted returns over the long term.

Reduce Sectoral Concentration:
While sectoral funds can boost returns during specific market phases, they should not dominate your portfolio. Consider reducing your allocation to these funds and balancing it with diversified equity funds.

Avoid Direct Funds:
If you're investing in direct plans, consider switching to regular plans through a Certified Financial Planner. Regular plans offer professional guidance, which is crucial for long-term wealth creation.

Steps Towards Achieving Rs. 5 Crore Goal
Increase SIP Contribution:
To achieve Rs. 5 crores, you might need to gradually increase your SIP amount. Consider a step-up SIP strategy, where you increase your contribution by a fixed percentage annually.

Stay Committed to Long-Term:
Your goal aligns with a 15-20 year horizon, which is ideal for equity investments. Stay committed to your SIPs, even during market volatility, to benefit from the power of compounding.

Regular Portfolio Review:
Conduct an annual review of your portfolio with a Certified Financial Planner. This will help you stay on track with your goal and make necessary adjustments as needed.

Final Insights
Your current SIP portfolio has a mix of opportunities and risks. By refining your investments, focusing on core funds, and regularly reviewing your strategy, you can increase your chances of reaching your Rs. 5 crore goal in the next 15-20 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |450 Answers  |Ask -

Dating, Relationships Expert - Answered on Dec 03, 2024

Asked by Anonymous - Dec 03, 2024Hindi
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Relationship
Hello, my wife is Ugandan and I’m of English national, 30 years old and she’s 26, we met nearly a year ago and got married in uk with some of her friends and small family. We haven’t done kuchala (not sure if that’s correct spelling) yet and I’m feeling anxious for when the time comes. She said her family will kneel when they greet me and being white this is already stinging my moral (due to history). I also talked about moving in together before the meet the parents happen however she says she’s rather move in after? Currently this could take two years before going to Uganda, how should I proceed without overstepping her cultural beliefs as after all we are married and by my culture we should already be living together
Ans: Dear Anonymous,
It is very nice of you to be so considerate and sensitive while handling these cultural nuances. Let's discuss the kneeling tradition. It's a sign of respect and it's deeply rooted in Ugandan culture. While I understand your point of view, you also have to remember that it can have significant meaning to her and her family. I suggest you politely express your feelings and let her know why it is uncomfortable for you to see her family kneel. When you explain, mention how much her culture means to you as well. I am sure both of you can communicate and come to a compromise that makes you both happy. Just in case, they persist in following the ritual, just look at it as a gesture of love and respect and not submission.

About the moving in together part, in certain parts of the world, couples living together before the traditional wedding is not considered respectful. But since you are already married, you can try explaining to your wife how the living situation does not go against her cultural expectations. But if it is a really big deal for her and her family, consider seeing it from her perspective.

Communication is everything here. Look at every problem as a team; it's not your problem vs her problem. It's both of you vs the problems.

I hope this helps

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Radheshyam

Radheshyam Zanwar  |1088 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 03, 2024

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Career
I have received a job offer from Siecorp ,a Singapore based company though my posting would be at my hometown . They have asked me to submit all credentials related to education & job experiences which is quite normal but they have asked the following documents also which they said would help me to arrange through some agent by payment & the same would be reimbursed during first month of employment . Earlier also another overseas company asked for the same & I denied to make payment before having the job in hand . 1. Construction Health and Safety Technician (CHST) – Compulsory 2. OSHA Safety Certificate – Compulsory 3. Safety Trained Supervisor (STS) – Non-Compulsory Kindly advise whether these certificates are really required to be submitted to join any foreign company or any sort of cheating business regards,
Ans: Hello Bipradas.
From your query, it is clear that you have offered by job by a Singapore-based company and they are giving you a posting in your home town. You did not mention anything about the work culture of the company. It simply indicates that you are supposed to work from home which is always related to computers. I think there is no harm in producing the required documents through an agent if they are offering you a handsome salary. The requirement for documents differs from company to company. There is no harm in submitting the mentioned documents. If have fear in your mind, then please go through the profile of the company in detail before submitting the documents. There are many ways to check the authenticity of the company. There are some chances of cheating, but everybody is not indulged in the same category. But take the steps with utmost precaution.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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