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Nikunj

Nikunj Saraf  |308 Answers  |Ask -

Mutual Funds Expert - Answered on May 22, 2023

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more
Samir Question by Samir on Mar 27, 2023Hindi
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I am 60 retired about a year bank from a large PSU. Now consulting and earning about 100,000 per month. Further 8 earn about 1.75 lakh from rental. I hv been investing in following monthly sips for last 2 years. Icici Prudential equity and debt 10000 Pgim midcap. 20000 Quant tax. 20000 Mirae assets. 8000 Quant midcap. 14000 Axis midcap. 10000 Parag parikh. 15000 Canara tobacco small cap. 10000 All direct and growth plan. Current value is 16.3 lakh. I want to achieve 25 lakhs in 1 year fr marriage of my son. Further I need another 40 for younger son education in 3 years. Do u think it these are achievable targets? Can u suggest any changes in chosen funds ? I hv my own houses and car. Except fr 15000 emi towards car, there is no major liability. Pl revert Sammir Kapoor

Ans: Hello Sammir. Considering your goals and requirements, and assuming you will be contributing to SIPs in the coming year as well, both the one year and three year goals can be achieved. Your portfolio is in line with the market and it seems you have done thorough research with current market. No modification is required.
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  |3819 Answers  |Ask -

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

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Hi sir ,I am 37 years now, my investments are like this 1,invested in hdfc pro growth ULIP plan for 10 years every year 25k and in another 2 years r remaining 2, hdfc sanchey plus 1 lakh per year for 10 years at 15 th year will get lump sum 18lakhs 3, hdfc sampoorna Niveah for 5 years each year 61k 4, lic Jeevan Lakshay for 18 years every month 5780 I pay at maturity I will get 24.7 lakhs in 2043 5, PPF every month 2k 6,mutual fund sip of 8k per month in a,Mirae asset tax saver lumsum had invested 10k now it is giving me 109% profit should I keep it or remove it b,sbi small cap fund -500/month C,Parag Parikh flexicap fund -1k/ month D,nippon India Pharma fund -500/month E,sbi nifty index -500/month F,Tata India consumer fund- 500/month G,axis multi asset allocation fund - 1000/month H,dsp natural resource lump sum 1k having 109 % returns I,quant infra fund direct -1k /month J,nippon indian small cap-1 k /month K,,sbi gold direct plan -1 k /month L,Motilal Oswal mid cap -1 k / month Plz suggest any changes and good investment plans
Ans: Enhancing Your Investment Strategy: Recommendations and Considerations
Your investment portfolio demonstrates a disciplined approach towards wealth creation and financial planning. Let's delve deeper into the various components of your portfolio and provide recommendations to optimize your investment strategy.

Fixed Income Investments:
Public Provident Fund (PPF):

Your monthly contribution of 2,000 rupees to PPF provides tax-efficient returns with a long-term investment horizon.
Continue investing to benefit from compounding growth and tax benefits over time.
Mutual Fund SIPs:
Equity Mutual Funds:

Your portfolio comprises a diversified mix of equity mutual funds, including Mirae Asset Tax Saver, SBI Small Cap, Parag Parikh FlexiCap, Nippon India Pharma, Tata India Consumer, Axis Multi Asset Allocation, and Motilal Oswal Mid Cap.
These funds offer the potential for wealth creation over the long term.
It's advisable to review the performance of each fund periodically and consider rebalancing based on market conditions and your risk tolerance.
Gold and Sectoral Funds:

You've allocated funds to sectoral funds like SBI Gold Direct Plan, DSP Natural Resource, Quant Infra Fund, and Nippon India Small Cap.
While sectoral funds and gold provide diversification benefits, they are subject to market volatility.
Monitor their performance regularly and adjust allocations accordingly to manage risk effectively.
Recommendations and Considerations:
Review ULIPs:

Surrendering existing insurance policies and reallocating the funds into mutual funds can be a strategic move to optimize your investment portfolio and potentially enhance long-term returns. Let's delve deeper into this approach and explore its benefits and considerations.

Analysis of Insurance Policies:
HDFC Pro Growth ULIP Plan:

Evaluate the ULIP's performance, charges, and insurance coverage.
Assess if the returns justify the associated costs and if the insurance coverage meets your needs.
HDFC Sanchay Plus:

Consider the opportunity cost of tying up funds for 15 years for a lump-sum payout.
Assess whether the returns align with your financial goals and if alternative investment avenues offer better growth potential.
HDFC Sampoorna Nivesh:

Review the performance and liquidity features of the plan.
Determine if the returns are competitive compared to other investment options and if the plan aligns with your risk profile.
LIC Jeevan Lakshay:

Evaluate the maturity benefits and compare them with alternative investment avenues.
Consider surrendering the policy if the returns are suboptimal or if better investment opportunities are available.
Benefits of Reallocating to Mutual Funds:
Enhanced Returns Potential:

Mutual funds, especially equity funds, have historically outperformed traditional insurance plans over the long term.
By reallocating funds, you may potentially benefit from higher returns and capital appreciation.
Greater Flexibility and Liquidity:

Mutual funds offer greater liquidity compared to insurance policies with lock-in periods.
You can access your funds as needed without penalties, providing flexibility in managing your financial goals.
Diversification and Risk Mitigation:

Mutual funds offer diversification across various asset classes and investment strategies.
Diversifying your portfolio reduces concentration risk and enhances overall risk-adjusted returns.
Considerations Before Surrendering Policies:
Surrender Charges and Penalties:

Evaluate the surrender charges and penalties associated with terminating insurance policies prematurely.
Compare the costs with the potential benefits of reallocating funds to mutual funds.
Insurance Needs and Coverage:

Assess your insurance needs and ensure adequate coverage for life, health, and other contingencies.
Consider retaining essential insurance policies while surrendering redundant or underperforming ones.
Recommended Action Plan:
Evaluate Surrender Value:

Obtain surrender values and assess the financial implications of surrendering each insurance policy.
Consider surrendering policies with high charges or low returns, prioritizing those that offer better growth potential elsewhere.
Reallocate Funds to Mutual Funds:

Identify suitable mutual funds based on your investment objectives, risk tolerance, and investment horizon.
Allocate surrendered funds to a well-diversified mutual fund portfolio across equity, debt, and other asset classes.
Regular Review and Monitoring:

Periodically review your mutual fund portfolio's performance and make adjustments as needed.
Consult with a Certified Financial Planner to ensure your investment strategy aligns with your financial goals and risk tolerance.

Surrendering insurance policies and reallocating funds to mutual funds can optimize your investment portfolio, potentially enhancing long-term returns and flexibility. By carefully evaluating your insurance needs, surrender charges, and investment opportunities, you can make informed decisions to achieve your financial objectives.
Optimize Mutual Fund Portfolio:

Regularly monitor the performance of equity and sectoral funds in your portfolio.
Consider consolidating or reallocating funds based on performance, risk, and investment objectives to maximize returns.
Asset Allocation:

Maintain a balanced asset allocation strategy across equity, debt, and alternative investments to mitigate risk and achieve long-term financial growth.
Diversification:

Ensure your portfolio is well-diversified across asset classes and investment avenues to minimize risk and maximize returns.
Regular Review:

Periodically review your investment portfolio with a Certified Financial Planner to make informed decisions and adapt to changing market dynamics and personal financial goals.
Conclusion:
By following these recommendations and considerations, you can optimize your investment portfolio, maximize returns, mitigate risks, and achieve your long-term financial objectives effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |3819 Answers  |Ask -

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

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Hello, My name is AB from Delhi. My age is 34. I have my own house. Having rented income of 20k. In my family my wife she is 33 and Housewife, my daughter 10months and planning for a baby in a year. I am earning around 50k month. No loan, no debt nothing. I have 2 lacs in emergency fund. I am having 15k medical insurance for all 3 of us of 5lac and will increase it to 10lakh or more from next year. Term insurance of 1crore. Sukanya opened in April 2024. I am doing stock market but not more than 50k overall and not planning to invest more. I am doing 6 SIPs. Below are the details. All are Direct Plans. PFA Mirae large and Mid - 2500 (22nd Nov 2023) Parag Flexi cap - 3500 (22nd Nov 2023) Quant small cap - 3000 (18th Dec 2023) HDFC Flexi Cap - 2500 (15th March 2024) Nippon India small cap - 2500(28th March 2024) UTI Nifty 50 Index Fund - 2500(26th March) I have some 25lacs with me because I sold one of my property. So planning for property is there anything else I can do with 25lacs? My questions are as follows:- 1. Review my portfolio I will invest Max 20k a month Should I add more SIP's or should I change some from above? 2. My goals are my children's education and marriage. 3. Wealthy and Retirement plan 4. Lumsum Amount 5. Need some lacs in every 4-5 years like for admission or for some emergency. 6. Want a luxury life for my family. 7. After 20 years I want 2.5cr. How much and where I have to invest?
Ans: It's evident that you've taken proactive steps to secure your family's financial future, AB. Let's address your questions systematically:
1. Portfolio Review: Your current portfolio reflects a well-diversified approach with exposure to large-cap, mid-cap, flexi-cap, and small-cap funds. However, since your investment horizon is long-term, you might consider adding more mid-cap and small-cap funds to potentially enhance returns. Additionally, periodically review your portfolio to ensure it remains aligned with your goals and risk tolerance.
2. Children's Education and Marriage: Your SIP investments can serve as a solid foundation for funding your children's education and marriage. Consider increasing your SIP contributions gradually over time to meet these goals effectively.
3. Wealth and Retirement Planning: Given your current financial situation and goals, focusing on building a diversified investment portfolio comprising equity, debt, and other asset classes is crucial. Consult a Certified Financial Planner to develop a comprehensive wealth and retirement plan tailored to your specific needs and aspirations.
4. Lump Sum Investments: With the 25 lakhs from selling your property, consider diversifying your investments across various asset classes such as mutual funds, stocks, bonds, and fixed deposits to optimize returns and manage risk.
5. Emergency Fund: Your emergency fund of 2 lakhs is a prudent move. As your financial responsibilities increase, consider gradually increasing this fund to cover at least 6-12 months of living expenses.
6. Luxury Life: Achieving a luxury lifestyle requires careful financial planning and disciplined savings. Allocate a portion of your monthly income towards discretionary expenses while ensuring you prioritize long-term goals.
7. Long-term Wealth Target: To achieve your target of 2.5 crores in 20 years, focus on consistent investing in equity mutual funds, which historically have provided higher returns over the long term. Review your portfolio periodically and make adjustments as needed to stay on track towards your wealth accumulation goal.
Remember, financial planning is an ongoing process, and it's essential to periodically review and adjust your strategy based on changes in your life circumstances, financial goals, and market conditions. By staying disciplined and seeking professional guidance when needed, you can work towards building a secure financial future for you and your family.

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Ramalingam Kalirajan  |3819 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 2024

Asked by Anonymous - Apr 16, 2024Hindi
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Hi, i am 42 years old 2 children 7 and 11 yrs each. earning currently 2 lakh net. I planning to create a retirement plan. I have done some investments but have never planned with specific goals so far. I intend to grow my money as much possible. And i am willing to take few risks, like i have started doing derivatives in options ( only nifty and I am not doing intra day). Please advice if my investment are reasonable and what are the other options i have to invest. Here are my assets and liability Land at current value : 70 lakhs Gold at current value : 21 lakhs Fixed Deposit : 10 lakhs PF balance : 11 lakhs Sukanya samridhi (annual1.5lakh) : 20 lakh Ppf for son ( annual 1.5 lakh): 14 lakh Direct equity ( 6 lakh invested) : current value : 17 lakhs Mutual Funds Franklin templeton tax saver growth( sip 4000) : 12 lakh Pp flexi cap growth(Sip 2000): 77 thousand Newly started Sip Quant small cap (sip 1000) Edelweiss momemtum (SIP) Liability ( car loan) : 20 lakhs
Ans: Given your age, income, and willingness to take risks, you have a decent mix of assets, but there are areas to focus on for a balanced retirement plan:

Assets:
Your assets are well-diversified with real estate, gold, fixed deposits, and various investment instruments like PF, Sukanya Samriddhi, PPF, direct equity, and mutual funds. However, your direct equity and derivatives trading can be volatile; ensure they align with your risk appetite.

Liabilities:
The car loan is a liability that can impact your monthly cash flow. Consider paying it off sooner to reduce interest costs and free up monthly income.

Suggestions:

Increase Equity Exposure: As you're willing to take risks, consider increasing exposure to equity mutual funds and direct equity investments.

Review Derivatives Trading: Be cautious with options trading due to its speculative nature. Ensure it doesn't dominate your portfolio.

Emergency Fund: Build a separate emergency fund to cover 6-12 months of expenses.

Health and Life Insurance: Ensure you have adequate health and life insurance coverage to protect your family's financial future.

Retirement Corpus: Calculate the required corpus for retirement based on your desired lifestyle post-retirement. Use a retirement calculator to estimate the monthly contributions needed to achieve this goal.

Diversify Investments: Explore other investment avenues like debt funds, international funds, to further diversify your portfolio and manage risks better.

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Ramalingam

Ramalingam Kalirajan  |3819 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

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Hello Mr Lala, I am 42 and I am investing in the following schemes. some for close to 8/9 years now. Please let me know your thoughts. Mirae Asset Large & Midcap Fund-Reg(G) - 5000, MOTILAL OSWAL M100 ETF - 2500 (STEPUP - 20% YoY), Quant ELSS Tax Saver Fund(G) - 5000, Quant Focused Fund(G) - 5000, SBI Small Cap Fund-Reg(G) - 5000, Tata ELSS Tax Saver Fund-Reg(G) - 1000, HDFC SMALL CAP FUND - REGULAR PLAN - GROWTH PLAN - 1000, AXIS BLUECHIP FUND-GROWTH - 1000, Motilal Oswal Nasdaq 100 FoF - 2500 Besides these I have off late started investing 15K in equities every month with the help of a SEBI Registered advisor. Yearly out go in PPF - 21600. My idea is to hold on to equities for the long term hence mostly blue chip stocks. I have also invested in Term Insurance - 75L. Besides that I do invest in ESPP and also hold some RSUs Please evaluate & let me know your thoughts. My liabilities are - HL - 36K monthly out go - 14 years left Car Loan - 31K 4 years left Monthly Salary - 2.3L
Ans: It's great to see your proactive approach to investing and financial planning. Let's review your current investment portfolio:

• Firstly, investing in a mix of mutual funds, ETFs, and direct equity demonstrates a diversified approach to wealth creation, which is crucial for managing risk effectively.

• Mirae Asset Large & Midcap Fund, SBI Small Cap Fund, and HDFC Small Cap Fund offer exposure to different segments of the market, providing diversification benefits.

• Quant ELSS Tax Saver Fund and Tata ELSS Tax Saver Fund are tax-saving investments that offer potential tax benefits under Section 80C of the Income Tax Act. It's essential to review their performance and compare them with peers periodically.

• Axis Bluechip Fund and Motilal Oswal Nasdaq 100 FoF focus on blue-chip stocks and global equities, respectively, providing exposure to different geographies and sectors.

• Investing in PPF is a prudent move for long-term wealth accumulation, given its tax benefits and safety. However, it's essential to ensure that your overall portfolio is adequately diversified across asset classes.

• Term insurance coverage of 75 lakhs is commendable and ensures financial protection for your loved ones in case of any unforeseen events.

• Holding some of your investments in ESPP (Employee Stock Purchase Plan) and RSUs (Restricted Stock Units) can complement your overall investment strategy, but it's crucial to diversify beyond company-specific investments.

• Regarding your liabilities, it's good to see that you have a clear picture of your outstanding home loan and car loan. It's essential to manage these liabilities efficiently while focusing on wealth creation.

In conclusion, your investment portfolio reflects a balanced approach to wealth creation, with a mix of mutual funds, direct equity, and tax-saving instruments. However, it's essential to regularly review your portfolio's performance, reassess your financial goals, and make adjustments as needed. Keep up the good work, and here's to your continued financial success!

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Sir, My son has secured a rank of 8680 in TS EAMCET and 4998 in AP EAMCET. As counseling in both states has not yet started, we are exploring various options. I have come to know that VIT-AP is offering seats through AP EAMCET. Additionally, he has received the following offers: - CSE at SRM Ramapuram - ECE at Amrita Nagercoil - CSE at KIIT Bhubaneswar Please suggest the best colleges in order of preference, keeping in mind my son's interest in pursuing CSE, preferably in Andhra Pradesh and Telangana where he may get a seat. Thank you.
Ans: Vijay Sir, Order of Preference (as you prefer AP / Telangana First) (1) VIT-AP (2) KIIT-Bhubaneswar (3) Any one of the Top 5-Colleges in AP through TS-EAMCET or AP-EAMCET (4) CSE-SRM. Please ignore ECE-Amrita-Nagercoil which is totally down-TN. Whatever Institute / University & Branch your Son chooses, he should keep upgrading his skills from his 1st year itself till his Campus Placement during his last year, from LinkedIn, Coursera, NPTEL, Internshala etc. and / or any other online platforms, recommended by his College Faculties, to be COMPETENT among other Students. All the BEST Vijay Sir, for your Son's Bright Future. To know more on ‘ Careers | Education | Jobs, | Resume Writing | Profile Building | Salary Negotiation Skills | Building Professional LinkedIn Profile | Choosing Right School Board (State | Matriculation | CBSE | ICSE |International Board) | Student Psychological Counselling | Exam Preparation Techniques (Board | Entrance & Competitive)| Management Quota Admission Ideal or Not? | How to Prepare for Campus Recruitment? | Job Interview Skills | Skill Upgrading | Parenting & Child Upbringing Skills | Career Transition | Labour Laws | Abroad Education | Education Loan (India | Abroad) | Scholarship (India | Abroad) | SOP Writing Tips’, please FOLLOW me in RediffGURU here.

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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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