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Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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 - Sep 08, 2023Hindi
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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.
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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Asked by Anonymous - Jan 02, 2024Hindi
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I am 42yo and started SIP a year ago. My current SIPs (all Direct-G) 1) Mirae Asset ELSS (2000), 2) Quant ELSS (2000), 3) Canara Robeco ELSS (2000), 4) PPFAS ELSS (1500), 5) Nippon Multicap (1500),6) Quant Smallcap (3500), 7) PGIM Midcap (1000), 8) Quant Flexicap (2000), 9) Quant BFSI (5000). Altogether, my monthly SIP amounts to Rs. 20500. Additionally I am contributing 4000/m in NPS. I have a term plan of 25 Lakh, Health Insurance of 25 Lakh, Life Insurance of 6 lakhs. I have an EPF balance of 2 lakhs and contributing. Pls review my SIP portfolio and suggest. I want to stepup my SIP 10% annually. I have a investment horizon of 10 yrs for daughters education and 15 yrs horizon for retirement corpus. I am OK with High Risk considering 10 & 15 yrs horizon. Please suggest funds for an aggressive portfolio to accumulate 1 cr in 10 yrs.
Ans: Your current SIP portfolio seems well-diversified, but you may consider some adjustments to align with your goals and risk appetite. Given your long-term horizon and willingness to take high risk, you can consider the following suggestions:

Increase Allocation to Equity: Since you have a higher risk tolerance, you may consider increasing your allocation to equity funds, especially small-cap and mid-cap funds, which have the potential for higher returns over the long term.

Review ELSS Funds: While ELSS funds offer tax benefits, ensure you're comfortable with the lock-in period. You may want to diversify across different categories within equity funds for better risk management.

Evaluate NPS Contribution: Assess the performance and suitability of NPS vis-a-vis other retirement-focused investment options like equity mutual funds, considering your risk appetite and return expectations.

Regularly Review and Rebalance: Given your investment horizon, regularly review your portfolio's performance and make adjustments as necessary. Consider rebalancing your portfolio annually to maintain the desired asset allocation.

Consider Professional Advice: Given the complexity of investment decisions and tax implications, consider seeking advice from a certified financial planner who can provide personalized recommendations based on your financial goals, risk tolerance, and investment horizon.

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Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

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

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Dear Sir/Madam, Greetings, I am Nirav Joshi, 34 years old physiotherapist, residing in Abu dhabi, UAE for the last 8 years. I started my SIPs in 2017 which are as follows: 1) Axis Bluechip- 12500 per month 2) Mirae Asset Large and Midcap (previously known as Bluechip fund)- 14000 per month 3) Kotak Flexicap- 15000 per month 4) Nippon India small cap- 16000 per month All funds are direct mode, growth option. I have initiated SIPs with a lesser amount, increasing by some percentage every year. The current valuation stands around 38.2L with a 26% p.a. return. My goal is to achieve a portfolio of 5cr by 2035. I would like to request you to kindly review my portfolio. I have a few questions in my mind. what should i do with axis bluechip and kotak flexicap? Both are under performing. Should I stop SIP and keep my units intact? and start SIP to better options? Should I SWP or STP to other funds? If yes, should i go with same fund house? Kindly advice with some fund examples. Thank you
Ans: Dear Nirav,

Greetings! I appreciate the detailed information you've shared about your investment journey. It's great to see your proactive approach to achieving your financial goals. You've done well by starting early and increasing your SIP contributions annually.

Current Portfolio Assessment
Your current SIPs are as follows:

Axis Bluechip: Rs. 12,500 per month
Mirae Asset Large and Midcap: Rs. 14,000 per month
Kotak Flexicap: Rs. 15,000 per month
Nippon India Small Cap: Rs. 16,000 per month
With a current portfolio value of Rs. 38.2 lakhs and an impressive 26% annual return, you're on a solid path toward your goal of Rs. 5 crores by 2035.

Evaluating Underperforming Funds
You mentioned that Axis Bluechip and Kotak Flexicap are underperforming. This can be concerning, but it's essential to assess the reasons and decide the best course of action.

Axis Bluechip Fund
Bluechip funds typically invest in large-cap companies, which are stable but might not offer high growth compared to mid or small-cap funds. If Axis Bluechip isn't meeting your expectations, consider the following steps:

Performance Comparison: Compare its performance with other large-cap funds over the same period.
Market Conditions: Large-cap funds may underperform during specific market cycles but provide stability in volatile times.
Fund Management: Evaluate the fund manager's track record and the fund's expense ratio.
Kotak Flexicap Fund
Flexicap funds invest across market capitalizations. If Kotak Flexicap isn't performing well, consider:

Diversification: Ensure the fund's sectoral and stock diversification aligns with your risk appetite.
Historical Performance: Look at its long-term performance compared to peers.
Economic Factors: Consider macroeconomic factors that might be affecting its performance.
Strategic Moves
Given your concerns, here are some strategies:

Stopping SIPs and Switching
If you decide to stop SIPs in underperforming funds, keep the units intact. This ensures you benefit from any future upturns.

New SIPs: Start SIPs in funds with better performance and strong management.
Fund Houses: You can choose funds from different fund houses to diversify further.
Systematic Transfer Plan (STP)
STP allows transferring a fixed amount from one fund to another periodically. This helps in averaging costs and reducing risk.

Within Same Fund House: Transferring within the same fund house might reduce exit load and tax implications.
Example Funds: Look for funds with consistent performance and strong management teams.
Fund Examples for Consideration
While I won't name specific schemes, here's what to look for:

Large-Cap Funds: Consistent performers with a low expense ratio.
Flexicap Funds: Funds with flexible allocation strategies and good historical returns.
Mid-Cap and Small-Cap Funds: High growth potential but be mindful of higher volatility.
Benefits of Regular Funds
You mentioned investing in direct funds. While direct funds have lower expense ratios, regular funds through a Certified Financial Planner (CFP) offer:

Professional Guidance: CFPs provide tailored advice based on your financial goals and risk tolerance.
Holistic Planning: They help in comprehensive financial planning, including tax and estate planning.
Active Monitoring: Regular reviews and adjustments based on market conditions and your changing needs.
Final Insights
Nirav, your disciplined investment approach and regular SIP increments are commendable. Addressing underperforming funds and considering strategic reallocation can enhance your portfolio's performance. Remember to review your portfolio periodically and consult a Certified Financial Planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Latest Questions
Radheshyam

Radheshyam Zanwar  |1189 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 15, 2025

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My son has got 91 percentile in the recent jee exam , he has next attempt in april, but i feel its difficult for him , can i know about other good colleges in karnataka , as im based their. interested in computer science and aeronautical degree, also advise some recent good courses for his career in india.
Ans: Hello Manoj.
Do not get stressed at this stage. Even though his score is 91 percentile in 1st attempt, he can do well in 2nd attempt. But from the safer side, ask him to appear in the Karnataka State Engineering Entrance Examination also. Even if he scores less in JEE on 2nd attempt, he may good college via the state entrance examination in CSE or aeronautical engineering as per your wish. For your reference, there are 10 colleges in India where you can get admission without a JEE score. To know more details, please copy and paste the following link into your browser- https://timesofindia.indiatimes.com/education/news/10-engineering-colleges-in-india-for-pursuing-btech-without-jee-main-2025-score/articleshow/118162587.cms.
There are no such courses to be called as recent. The choice of courses depends upon the interest of your son. Hence there is no need to hurry and get into panic at this stage. Let him appear for both exams first, Ask about his interests, and then choose the course accordingly. I would be happy to suggest you after knowing his scores in JEE+State entrance + his liking.
Till then, ask him to focus only on two engineering entrance exams. Best of luck to your son for upcoming exams.

If satisfied with the reply, please like and follow me, else ask again.
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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