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Ramalingam

Ramalingam Kalirajan  |6275 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 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
kapil Question by kapil on Dec 27, 2023Hindi
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Hi Sir, In 5 year I need 30 lakhs corpus, for the same I am investing 30000 per month as follows: 5000 in Nippon large Cap direct growth, 5000 in Nippon India small cap; 5000 in Parag parikh Flexi cap; 5000 in HDFC Transportation and logistics fund; 5000 in Amazon, 1000: Google; 5000 Vanguard S&P 500. Do I have right selections or need to rectify/add/change values or Funds? Also I am using INDMoney for same, any comment on the same?

Ans: Your proactive approach towards building a corpus for your future goals is commendable. Let's delve into your investment strategy.

You've chosen a mix of funds spanning various sectors and geographies, which is akin to cultivating a diverse garden. While each plant has its unique value, it's essential to ensure they collectively thrive. The global exposure with Amazon, Google, and Vanguard S&P 500 can offer growth opportunities, while domestic funds can provide stability.

However, having a human touch in your investment journey can make a world of difference. Digital platforms, though convenient, lack the warmth and emotional support that an AMFI certified Mutual Fund Distributor (MFD) can offer. They can guide you through market fluctuations, aligning your investments with your goals and risk profile. This personalized approach ensures that your financial journey isn't just about numbers but also about understanding and empathy.

In summary, while your fund selection is diverse, consider partnering with an MFD to enrich your investment experience.
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  |6275 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 05, 2024Hindi
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Hi sir, I am 33.5 years old and want to built a corpus of 5 crore by the age of 40. My current investment are: Mutual funds - 37 lac Fixed deposits of around 50 lac PPF - 25 lac Gold and Gold bonds - 20 lac Indian stocks - 1 lac mainly HDFC US stocks - 7 lac mainly etfs This is my and my wifes combines portfolio For next 6.5 years we will be investing in Sip - 2 lac per month PPF - 25k per month Sovereign Gold - 12g every year Nifty 50 etf niftybees 30k per month only days when market is down. Please guide me.
Ans: It's impressive to see your proactive approach towards building wealth and securing your financial future. With a well-diversified portfolio and a systematic investment plan in place, you're on the right track to achieve your goal of reaching a corpus of 5 crore by the age of 40.

Your current investment mix demonstrates a balanced approach, encompassing various asset classes like mutual funds, fixed deposits, PPF, gold, and stocks, both domestic and international. Diversification is key to managing risk and maximizing returns over the long term.

Continuing with your SIPs, PPF contributions, and sovereign gold investments will further strengthen your portfolio's foundation. SIPs in equity mutual funds provide exposure to the equity market, offering the potential for higher returns over time. PPF and sovereign gold investments offer stability and act as a hedge against market volatility.

Your strategy of investing in Nifty 50 ETF during market downturns is commendable as it allows you to capitalize on market opportunities and accumulate units at lower prices, potentially enhancing your long-term returns.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.

Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.

Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.



Regularly review your portfolio's performance and rebalance as needed to ensure alignment with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner (CFP) to fine-tune your investment strategy and address any specific concerns or objectives you may have.

Stay disciplined with your savings and investment approach, and continue to monitor market trends and economic indicators. With patience, perseverance, and prudent financial management, you're well-positioned to achieve your target corpus by the age of 40.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Moneywize

Moneywize   |147 Answers  |Ask -

Financial Planner - Answered on Aug 14, 2024

Asked by Anonymous - Aug 09, 2024Hindi
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Sir, I want to create a corpus of Rs 4 cr in next 18 years. Are these funds and their respective SIPs enough or shall I invest more in them? ICICI COMMODITY FUND: Rs 10,000 Tata Digital Fund: Rs 600o ICICI PRUDENTIAL TECHNOLOGY FUND: Rs 8000 HDFC Hybrid Debt Fund Direct Growth: Rs 8000 HDFC Midcap Fund Direct: Rs 8000 SBI ENERGY OPPORTUNITIES FUND: Rs 8000 ICICI Infrastructure Direct Growth: Rs 5000 HDFC NIFTY G-SEC INDEX DIRECT GROWTH: Rs 5000 ADITYA BIRLA SUN LIFE DIGITAL FUND: Rs 5000 Edelweiss Multicap Fund: Rs 5000 I have been investing since January 2023. Am I on the track to generate my corpus?
Ans: To achieve a corpus of Rs 4 crore in 18 years, you'll need to assess whether your current SIPs and fund selection are adequate.

Current Investments:
Your total monthly SIP is Rs 68,000. Over 18 years, assuming an average return of 12 per cent per annum (which is reasonable for a well-diversified equity portfolio), here's a rough estimate:

Future Value of SIPs:

Using the SIP formula, the corpus generated by Rs 68,000 monthly SIPs over 18 years at a 12 per cent annual return would be approximately Rs 3.8 to 4 crore.

Analysis:

Fund Selection:

• Equity Funds: Most of your funds are equity-oriented, which is good for long-term growth.
• Sectoral Funds: You have multiple sectoral/thematic funds (like technology, energy, digital, etc.). These can be volatile, and while they offer higher growth potential, they also carry higher risk. It's essential to ensure you're comfortable with this level of risk.
• Debt Fund: HDFC Hybrid Debt Fund and Nifty G-Sec Index Fund add a bit of stability to your portfolio, but they're relatively conservative compared to pure equity funds.

Diversification:

Your portfolio is well-diversified across sectors and asset classes. However, it's important to periodically review and rebalance your portfolio to align with market conditions and your risk tolerance.

Additional Investments:

If you want to be more certain of achieving or even exceeding the Rs 4 crore target, you could consider increasing your SIPs gradually as your income increases.

Another approach is to invest any bonuses or lump sums you receive into these funds or consider adding new funds to further diversify.

Conclusion:

You're on track to achieve your target based on current contributions. However, it's always good to review your portfolio annually, consider increasing SIPs as your financial situation improves, and consult with a financial advisor to ensure your investments are aligned with your goals and risk tolerance.

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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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