Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Sep 16, 2021

Mutual Fund Expert... more
Bhupinder Question by Bhupinder on Sep 16, 2021Hindi
Listen
Money

I am 69 years old and have started investing for the last couple of years.

Please check and let me know if my investments are on the right track.

I intend to carry on with investment for another two years.

Looking forward to your advice.

SIP since July 2018

1. Nippon India Small Cap fund (G) Rs 50K
2. ICICI Pru Bluechip Fund (G) Rs 1 lakh
3. ICICI Pru Multicap Fund (G) Rs 50K
4. ICICI Pru Multi-Asset fund (G) Rs 50K
5. Kotak Equity Opportunities Fund -- Regular Plan Rs 30K
6. Kotak Flexi Cap -- Regular Plan Rs 30K
7. Axis Focused Rs 25K-30K
8. Aditya Birla Sun Life Frontline Equity Fund Rs 30K
9. HDFC Capital Builder Value Fund Rs 20K
10. Tata Equity PE Fund -- Regular Plan, G Rs 60K
Total value is around Rs 2 crores

Ans: You may continue with 1, 2, 5, 6, 7 and 10.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Listen
Money
HI, I am 32 years old male having following SIPs. I am investing for wealth creation and for a time horizon of 10 - 15 years. Please review and guide if any changes are required 1. Parag Parikh - 10k 2. Kotak Multicap - 10k 3. Value Discovery - 10k 4. HDFC Balance Advantage - 6k 5 Canara Robeco Small cap - 5k 6 Canra Rebocco Blue chip - 5k 7 Axis Opportunities Fund - 9k 8 Groww Index Fund - 5k 9. Axis ELSS - 2.5K
Ans: It's great to see your commitment to investing for wealth creation at a relatively young age. Let's review your current SIP portfolio and make any necessary adjustments to ensure it aligns with your financial goals and time horizon.

Assessing Your SIPs
You've chosen a diverse set of mutual funds, covering various market segments and investment styles. Here's a brief overview of each fund:

Parag Parikh: Known for its global diversification and focus on quality stocks, suitable for investors seeking stability and growth potential.

Kotak Multicap: Provides exposure to companies across market capitalizations, offering diversification and potential for capital appreciation.

Value Discovery: A value-oriented fund that seeks undervalued stocks with the potential for long-term growth, suitable for patient investors.

HDFC Balance Advantage: A dynamic asset allocation fund that adjusts its equity exposure based on market conditions, offering downside protection and growth potential.

Canara Robeco Small Cap: Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

Canara Robeco Blue Chip: Focuses on large-cap companies with strong fundamentals and stable earnings, offering stability and growth potential.

Axis Opportunities Fund: Seeks investment opportunities across sectors and market caps, suitable for investors seeking capital appreciation.

Groww Index Fund: Tracks a specific market index, providing exposure to a broad market segment at a lower cost. However, index funds may underperform actively managed funds during certain market conditions.

Axis ELSS: A tax-saving fund that offers potential tax benefits under Section 80C of the Income Tax Act, suitable for investors looking to save on taxes while building wealth.

Recommendations for Optimization
While your portfolio is well-diversified, here are a few suggestions to consider:

Review Overlapping Holdings: Check for overlapping holdings across your funds to ensure adequate diversification. Avoid excessive exposure to similar stocks or sectors to minimize risk.

Evaluate Performance: Monitor the performance of each fund regularly and compare it against relevant benchmarks and peers. Consider replacing underperforming funds with better alternatives, if necessary.

Rebalance Asset Allocation: Assess your overall asset allocation and ensure it aligns with your risk tolerance and investment objectives. Consider adjusting your allocation between equity and debt based on changing market conditions and your financial goals.

Consider Consolidation: Depending on your preferences and convenience, you may consider consolidating your SIPs into fewer funds to simplify your portfolio management and reduce administrative overhead.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term wealth creation. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

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

Listen
Money
Hello Sir I am 45 year old and I have been investing Rs.1000/- as SIP in following stock - 1 Aditya Birla Sun Life Small Cap Fund 2 Axis Flexi Cap Fund - Regular Plan – Growth 3 Canara Robeco Emerging Equities - Regular Plan – GROWTH 4 HDFC Large and Mid Cap Fund - Regular Growth Plan 5 ICICI Prudential Flexicap Fund – Growth 6 Nippon India ELSS Tax Saver Fund-Growth And I also have invested Rs.50,000/- in liquiloans I just want to know is my investment is good or do I need to make more investment or any changes in my invest ment Sir pls do reply Thanks & Regard
Ans: Congratulations on taking proactive steps towards securing your financial future at the age of 45! Your commitment to investing is admirable and sets a solid foundation for wealth accumulation.

Understanding Your Portfolio:

You've chosen a diversified portfolio with investments across various mutual funds, including small-cap, flexi-cap, large and mid-cap, and ELSS tax saver funds. Additionally, your investment in Liquiloans adds an alternative asset class to your portfolio.

Assessing the Investment Mix:

Your portfolio reflects a well-rounded approach, with exposure to different market segments and investment styles. Small-cap funds offer growth potential, while flexi-cap and large and mid-cap funds provide stability and diversification.

Evaluating Investment Choices:

Each fund you've selected has its unique investment objective and risk profile. Aditya Birla Sun Life Small Cap Fund and Canara Robeco Emerging Equities focus on small and emerging companies, potentially offering high returns but also higher volatility.

Axis Flexi Cap Fund, HDFC Large and Mid Cap Fund, and ICICI Prudential Flexicap Fund offer flexibility in asset allocation, blending exposure across market caps. Nippon India ELSS Tax Saver Fund provides tax benefits along with long-term wealth accumulation.

Analyzing Additional Investment:

Your decision to invest in Liquiloans introduces an element of diversification beyond traditional mutual funds. However, peer-to-peer lending platforms like Liquiloans carry inherent risks, including credit and default risk, which should be carefully considered.

Recommendation for Consideration:

Given your age and investment horizon, your portfolio seems appropriately diversified. However, it's crucial to regularly review and rebalance your portfolio to ensure it aligns with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

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

Asked by Anonymous - May 08, 2024Hindi
Listen
Money
I do 4000 SIP in mirae asset emerging bluechip fund, had put 40k lumpsum in quant ELSS & now started SIP of 3K per month. Do 10K SIP in Nippon nifty smallcap 250 index fund, 5000 SIP in NPS and 3000 SIP in PPF. I have accumulated 4 lakh from Mutual funds over 4-5 yrs with some investment started recently. I'm 34 and earning 1 lakh per month and have some corpus in savings for emergencies. Are these investments going in right direction ??
Ans: Your proactive approach to investing and building wealth at the age of 34 is commendable. By prioritizing systematic investment plans (SIPs) and diversifying across various investment avenues, you are laying a strong foundation for your financial future.

Understanding Your Investments:

Your investment strategy demonstrates a blend of SIPs, lump sum investments, and long-term savings vehicles, reflecting a diversified approach to wealth accumulation. It's evident that you're considering both short-term and long-term financial goals.

Assessment of Investment Choices:

Mirae Asset Emerging Bluechip Fund:

Investing 4000 SIP in this fund indicates your inclination towards high-growth potential companies. The fund's focus on emerging blue-chip companies aligns with your goal of capital appreciation over the long term.

Quant ELSS:

The lump sum investment of 40k in this Equity Linked Savings Scheme (ELSS) reflects your intent to save taxes while investing in equity. ELSS funds offer the dual benefit of tax savings under Section 80C and potential for wealth creation over the long term.

Nippon Nifty Smallcap 250 Index Fund:

Allocating 10k SIP to this index fund provides exposure to small-cap companies in India. Small-cap stocks have the potential for high growth but come with higher volatility. It's essential to assess your risk tolerance and investment horizon accordingly.

National Pension System (NPS) and Public Provident Fund (PPF):

Investing 5000 SIP in NPS and 3000 SIP in PPF showcases your focus on long-term retirement planning and tax-efficient savings. Both NPS and PPF offer tax benefits and stable returns, contributing to your overall financial security.

Assessing the Direction:

Your investments reflect a balanced approach, considering both growth-oriented and stable investment avenues. However, it's essential to regularly review your portfolio's performance and make adjustments as needed based on changes in your financial goals and market conditions.

Considering your income level and savings corpus for emergencies, you're on the right track towards achieving your financial objectives. It's advisable to continue monitoring your investments and seek guidance from a Certified Financial Planner to ensure alignment with your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Money
I am 63years old and last month I have invested in SIP for 10 yrs Axissmall cap fund regular plan growth Rs3000 HDFC top 100fund --do-Rs3000 UTI nifty 50index fund growth Rs5000 ICICI prudential value discovery fund growth Rs5000 Sbi contra fund regular plan growth Rs3000 UTI transport and logistics sector growth fund I am a retired having sufficient corpus for old age. The above investment is for my grand children. Can you advise me whether my investment is correct and will you suggest better funds
Ans: I'd be happy to offer some insights and recommendations for your current investment strategy. Investing for your grandchildren is a wonderful gesture and can provide them with a significant financial head start in life. Let's break down your current investments and explore some alternatives that might better suit your goals.

Understanding Your Current Investments
You've chosen a variety of mutual funds, each with distinct characteristics. Here's a brief overview:

Axis Small Cap Fund: Small cap funds invest in companies with smaller market capitalization. These can offer high returns but come with higher risk due to volatility.

HDFC Top 100 Fund: This is a large-cap fund, focusing on stable, well-established companies with a track record of growth and reliability.

UTI Nifty 50 Index Fund: Index funds track a specific index, like the Nifty 50. They offer broad market exposure with lower management fees but lack the potential for higher returns from active management.

ICICI Prudential Value Discovery Fund: Value funds look for undervalued stocks with growth potential. These funds can perform well in different market conditions but may also carry higher risk.

SBI Contra Fund: Contra funds invest in out-of-favor stocks. These can provide high returns when the market corrects itself, but timing and selection are crucial.

UTI Transport and Logistics Fund: Sectoral funds like this one focus on specific sectors, offering higher returns when the sector performs well but also higher risk due to lack of diversification.

Evaluating Your Portfolio
Your investment portfolio showcases a mix of different types of funds, which is generally good for diversification. However, let's delve into some considerations:

Risk Assessment
Small Cap Funds: These funds can be highly volatile. While they offer high returns, the risk might be considerable, especially considering the investment is for your grandchildren and potentially for the long-term. Evaluating whether you need this high level of risk is crucial.

Sectoral Funds: Investing heavily in a single sector can lead to higher returns if the sector performs well. However, this comes with the downside of being overly exposed to sector-specific risks. Diversification across sectors might mitigate this risk.

Active vs. Passive Management
Index Funds: While they provide broad market exposure, index funds lack the potential for outperformance that actively managed funds might offer. The Nifty 50 Index Fund, for example, will mirror the market, which might be less desirable if you're aiming for higher returns over the long term.

Actively Managed Funds: These funds, like HDFC Top 100 and ICICI Prudential Value Discovery, aim to outperform the market through strategic stock selection. The expertise of fund managers can potentially lead to higher returns, justifying their higher management fees compared to index funds.

Potential Improvements and Suggestions
Given your investment goals for your grandchildren, let’s look at some potential adjustments:

Diversification
While your portfolio is diversified, you might want to consider reducing exposure to high-risk and sector-specific funds. Instead, opt for more balanced and multi-cap funds which offer diversification across market caps and sectors.

Balanced Fund Choices
Balanced Advantage Funds: These funds dynamically adjust between equity and debt based on market conditions. This provides a balanced approach, managing risk while aiming for reasonable returns.

Multi-Cap Funds: These funds invest across large-cap, mid-cap, and small-cap stocks. They offer the potential for higher returns with a balanced risk profile compared to investing solely in small caps or sectoral funds.

Long-Term Growth with Stability
Flexi-Cap Funds: These funds have the flexibility to invest across various market capitalizations, offering growth potential while maintaining a diversified portfolio.

Focused Funds: Investing in a limited number of high-conviction stocks, these funds can provide significant returns. The risk is higher due to the concentrated portfolio, but the potential rewards might align with your long-term goals.

Reviewing Your Specific Choices
Axis Small Cap Fund
This fund can offer significant growth, but it comes with higher risk. You might consider reducing exposure to this fund and reallocating to more stable options.

HDFC Top 100 Fund
A solid choice for stability and consistent returns. Large-cap funds like this can anchor your portfolio, offering lower risk and steady growth.

UTI Nifty 50 Index Fund
While index funds are cost-effective, actively managed funds might better serve your goal of maximizing returns for your grandchildren. Consider reallocating to an actively managed fund with a good track record.

ICICI Prudential Value Discovery Fund
Value funds are great for long-term growth. This fund is a good choice, as it can perform well in various market conditions.

SBI Contra Fund
Contra funds can offer high returns but require good timing. If you're comfortable with the risk, it can stay in your portfolio. Otherwise, consider switching to a more diversified option.

UTI Transport and Logistics Fund
Sectoral funds are risky due to lack of diversification. Consider reallocating to a more broadly diversified fund to mitigate sector-specific risks.

Implementing Changes
Reduce High-Risk Investments: Consider reducing your allocation in small-cap and sectoral funds. Instead, invest in balanced advantage or multi-cap funds for a more stable growth trajectory.

Increase Stability: Boost your investment in large-cap and diversified equity funds. These provide more stability and consistent returns.

Consider Actively Managed Funds: Given your long-term horizon and the goal of maximizing returns, actively managed funds could be a better fit than index funds.

Regular Review and Adjustment: Periodically review your portfolio with a Certified Financial Planner. Adjust based on market conditions and your evolving financial goals.

Power of Compounding
Investing for your grandchildren allows you to harness the power of compounding. The longer the investment horizon, the greater the potential for exponential growth. Ensure that your portfolio includes funds that can compound effectively over the long term.

Tax Efficiency
While planning investments, consider the tax implications. Long-term capital gains on equity funds are taxed at a lower rate compared to short-term gains. Structuring your investments to minimize tax liabilities can enhance net returns.

Final Insights
Your current investments show a thoughtful mix of different types of mutual funds. However, balancing risk and reward, especially for long-term goals like investing for grandchildren, is crucial. By reducing exposure to high-risk and sector-specific funds, and increasing stability through balanced and diversified funds, you can create a robust portfolio. Regularly reviewing and adjusting your investments with a Certified Financial Planner ensures alignment with your financial goals and market conditions.

Investing wisely today sets the foundation for a secure and prosperous future for your grandchildren.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
DOB entered in my LIC Jeevan Shri policy is 02/01/1962 whereas my actual DOB is 02/ 01/1960. All premiums are paid and policy is to mature in January 2027. Will there be any issue at the time of maturity? If yes, what should I do?
Ans: Identifying the Core Issue
Your policy photo shows DOB as 02/01/1962.

Your actual DOB is 02/01/1960.

The policy matures in January 2027.

This mismatch may cause confusion at maturity.

LIC may question your age at entry or maturity.

They may delay or adjust payout.

Potential Problems at Maturity
LIC assesses maturity based on policy date and age.

Incorrect DOB may trigger request for proof.

Verification delays are possible.

It may affect payable amount if age criteria differ.

Claim could be deferred pending correction.

A dispute could arise if underwriting terms vary by age.

Why Timely Correction Matters
Corrections during the policy term are simpler.

At maturity, LIC may demand proof and correction.

That may risk your payout timeline and convenience.

Avoiding delays preserves your financial planning.

Legal and Underwriting Perspective
LIC follows IRDAI norms and standard age documentation.

Update must use original proof like birth certificate, school records, or passport.

Age proof must be valid and consistent with actual date.

What You Should Do Now
1. Immediately Inform LIC

Visit the LIC branch office where policy was sold.

Write an application stating correct DOB.

Attach self-attested original documents:

Birth certificate or school leaving certificate.

Passport, PAN card, or Aadhaar.

2. Submit Application with Proofs

Clearly mention policy number and details.

Ask LIC to correct the DOB in records.

LIC will process under “endorsement and correction” procedure.

3. Follow Up Periodically

Keep a copy of acknowledgment receipt.

Visit branch after 15–30 days to check update status.

Ask for corrected policy document or endorsement certificate.

4. Keep Updated Documents

Once corrected, request updated policy

Ensure your maturity benefit is based on correct age data.

5. Minimise Risk of Dispute

Holding correct documentation reduces maturity time friction.

Avoid last-minute discrepancies causing unnecessary stress.

What Happens if You Don’t Correct Now
LIC may seek age proof at maturity.

Processing may get delayed by weeks/months.

Official payout may be reduced if age mismatch affects sums assured.

You may need to undergo extra paperwork or due diligence at maturity.

Post?Correction Actions
Ensure the corrected policy is reflected in your name.

Keep endorsement letter securely.

Include corrected document in financial plan.

Avoid future insurance or investment mismatches.

Integrating this into Your 360° Financial Plan
Insurance & Policy Governance

Age errors are common but fixable.

Timely correction reduces frustration.

Clean records align better with other investments.

Retirement & Liquidity Planning

January 2027 maturity may fund retirement or goals.

Ensure payout timing works with your plan.

Tax Considerations

Money received will be assessed as per maturity rules.

LIC doesn’t deduct tax at maturity.

But correct documentation avoids classification issues.

Final Insights
Mismatched DOB is fixable without surrender.

Fix it now by submitting application with proof.

Track status to ensure benefits at maturity are unhindered.

Proper documentation aids smooth maturity payout.

You can align this corrected policy with your overall financial plan.

You are proactive in seeking clarity. This action ensures secure maturity benefit and trust in your planning.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 16, 2025Hindi
Money
I'm 30 years old and have a cloud kitchen where I earn around 40000 a month approximately or sometimes more than this. I'm married and my wife is a working women earns 20k a month , I do investment in sliver by purchasing coins or have gold but need to ask where I can invest more for my kids education and for my retirement I'm capable to invest 15k every month and ready to invest for long term bases.
Ans: You are 30 years old.

You run a cloud kitchen.

Your income is around Rs 40,000 a month.

Your wife earns Rs 20,000 a month.

You invest in silver coins and gold.

You want to invest for kids’ education and your retirement.

You are ready to invest Rs 15,000 every month.

You are focused on long-term investment.

You have taken the right step already. Thinking early about your future goals is wise. Now let's build a full financial plan with your situation in mind.

Start with Emergency Fund

Emergency fund is the first step.

It helps when there is no income.

You should have 6 months’ expenses saved.

Try to keep Rs 2.5 lakhs to Rs 3 lakhs.

Use liquid mutual funds or sweep-in FDs.

This money should not be in gold or silver.

Keep it easy to access, but not in savings.

Secure Health and Life

Health insurance is a must.

Take family floater for yourself and your wife.

Minimum cover of Rs 5 lakhs is advised.

Don’t depend only on employer’s insurance.

Medical expenses can spoil savings if ignored.

Life insurance is needed only if you have dependents.

Pure term insurance is the best.

Avoid money-back or endowment plans.

Premiums are low and coverage is high.

Cover should be 15 to 20 times your yearly income.

Don’t mix insurance and investment.

Silver and Gold: Good but Not Sufficient

You invest in silver and gold now.

These protect against inflation.

But they don’t give regular returns.

They don’t help in long-term wealth growth.

Their prices are also very volatile.

Don’t invest more than 10% in them.

Your focus should be long-term growth now.

Invest in Mutual Funds through Certified Financial Planner

Mutual funds are ideal for long-term goals.

They give inflation-beating returns.

For Rs 15,000 monthly, SIP is the best way.

Systematic Investment Plan gives discipline.

Start SIP in 3 or 4 good funds.

Pick different categories – equity, hybrid.

Mix of large, flexi-cap, and balanced funds.

Choose regular plans through a Certified Financial Planner.

Avoid direct funds, they don’t give guidance.

MFDs with CFP certification can help with reviews.

They help you track and rebalance yearly.

Why Not Direct Funds

Direct funds don’t give personalised advice.

You need to track and switch on your own.

Most people don’t review their investments.

Regular funds give value with expert support.

A Certified Financial Planner will create a proper strategy.

You will stay more disciplined with guidance.

Advice helps avoid panic during market falls.

Avoid Index Funds and ETFs

Index funds only follow the market.

They don’t beat the market.

Returns are average, not high.

They don’t have fund manager’s expertise.

Actively managed funds select better companies.

You need high growth, not average returns.

Index funds are passive, with no risk strategy.

For long-term goals like kids’ education or retirement, avoid them.

Investment Allocation – Based on Your Goals

For Kids’ Education:

Start SIP of Rs 7,000 monthly.

Invest in child-focused equity mutual funds.

Add hybrid funds for safety after 5 years.

Review every year with your planner.

Add lump sum whenever income is high.

For Retirement:

Start SIP of Rs 8,000 monthly.

Choose 2–3 high growth mutual funds.

Use flexi-cap and large & mid-cap funds.

Goal is to build wealth over 25–30 years.

Don’t stop SIP during market falls.

Add a PPF Account

PPF is good for stable long-term returns.

Invest Rs 1,000 to Rs 2,000 monthly.

Safe, tax-free, and government-backed.

Use it as a fallback retirement backup.

Don’t rely only on this for growth.

Use it with mutual funds, not alone.

Track and Rebalance

Once a year, review your investments.

Shift from risky to safe as goals near.

Use Certified Financial Planner to guide.

Rebalancing helps avoid big losses.

Don't do it emotionally. Do it smartly.

Avoid Investment Cum Insurance Products

Don’t buy ULIP or endowment plans.

They give poor returns.

Charges are high. Lock-in is long.

They look safe but give low growth.

You lose flexibility and transparency.

Only pure term insurance is needed.

Discipline and Long-Term Thinking

Don’t stop SIPs during bad months.

Market may fall but it recovers.

Stick to the plan for 10 to 25 years.

Keep increasing SIPs when income rises.

Even Rs 1,000 increase helps long term.

Celebrate milestones with discipline, not breaks.

Avoid Loans for Goals

Avoid loans for kids’ education.

Build funds early. Avoid education loan stress.

For retirement, don’t depend on children.

Build your own wealth. Be self-reliant.

Loans eat returns and peace of mind.

Track Expenses and Budget

Save before you spend.

Don’t wait till month-end to invest.

Budget your expenses weekly.

Keep lifestyle simple till goals are strong.

Avoid unnecessary credit card expenses.

Other Smart Habits to Follow

Write down your goals clearly.

Write target year and amount.

Share goal clarity with your wife too.

Financial teamwork helps a lot.

Talk about money once a month at home.

Teach kids about savings from early age.

Finally

You are on the right track already.

Thinking about future at 30 is wise.

Silver and gold alone are not enough.

Mutual funds will build real wealth.

Take help from a Certified Financial Planner.

Build a solid emergency fund.

Get health and term cover first.

Start SIPs now for kids’ education and retirement.

Don’t stop SIPs when income is low.

Use PPF for safe support, not as main plan.

Stay consistent for 10 to 25 years.

Track, rebalance, and review yearly.

Avoid index funds and direct funds.

Avoid real estate or investment insurance.

Focus on goals. Avoid shortcuts.

Keep increasing investment with income.

Future will be safe, stress-free and independent.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
I am 37 years and doing sip of 37.5k every month in these fund for retirement goal which is 20 years from now. Apart from this I have 3L in SGB, nps sip of 14k every month and ppf of 10L. Hdfc flexi cap fund - 10k Hdfc Midcap fund - 2.5k Icici large and midcap fund - 10k Icici value discovery fund - 5k Tata small cap fund - 10k
Ans: Reviewing Your Current Investment Setup
You are 37 years old with a 20-year retirement horizon.

Monthly SIP total is Rs?37,500 in equity mutual funds.

You also hold Rs?3?lakh in sovereign gold bonds (SGB).

You invest Rs?14,000/month in NPS.

You have Rs?10?lakh in PPF.

Equity SIP breakdown:

Flexi?cap: Rs?10,000

Mid?cap: Rs?2,500

Large & mid?cap: Rs?10,000

Value discovery: Rs?5,000

Small?cap: Rs?10,000

This shows you are aggressive and committed. Excellent foundation for long-term wealth building.

Setting Clear Financial Goals
Your horizon (20 years) is ideal for equity exposure.

You may have multiple goals: retirement corpus, possibly medical, travel, legacy.

Define corpus target for retirement (e.g., monthly income, inflation).

Map goal timelines (retirement, near-term smaller goals).

Detailed goal clarity helps in allocation and withdrawals.

Assessing Overall Asset Allocation
Your current allocation includes:

Equity mutual funds: aggressive mix across caps.

NPS: equity + government securities exposure.

PPF: long?term debt with tax benefits.

SGB: gold holding.

Equity SIP alone is heavily tilted to small and mid?caps (~60%). Higher growth but higher volatility.
Your NPS and PPF provide debt and tax-efficient retirement coverage.
Gold acts as hedge, though no income.

This is good but can be further refined for diversification and risk control.

Rebalancing Equity Exposure
Small?cap and mid?cap overweight

These categories offer growth but high swings.

Review small?cap SIP through performance and volatility.

Mid?cap is decent, but focus needs to balance large?cap exposure.

Flexi?cap and value discovery funds

Flexi?cap offers flexibility; wisely used for allocation shifts.

Value discovery tends toward contrarian picks; keep modest exposure.

Large?cap or diversified equity

Add long?term large?cap exposure for stability.

You lack pure large?cap SIP. Consider adding one.

Aggressive hybrid or flexi?asset allocation

A blended plan (equity + debt) cushions downside.

With 20-year horizon, you may take slightly lower equity via hybrid.

Proposed Portfolio Refinement
Let us reshape monthly Rs?37,500 SIP:

Maintain small?cap SIP: Rs?5,000

Maintain mid?cap SIP: Rs?2,500

Maintain value discovery SIP: Rs?5,000

Maintain flexi?cap SIP: Rs?10,000

Add large?cap equity SIP: Rs?7,500

Add aggressive hybrid SIP: Rs?7,500

This keeps growth potential while smoothing volatility.
Small?cap exposure reduces from Rs?10k to Rs?5k.
Large?cap addition and hybrid provide balance.

Role of NPS, PPF, SGB in Retirement Planning
NPS (Rs?14k/month)

Provides equity + government securities mix.

Gives forced retirement equity exposure with tax benefit.

Include both Tier I and Tier II as needed.

PPF (Rs?10?lakh)

Good long?term debt asset with guaranteed returns.

Acts as stable base for retirement corpus.

SGB (Rs?3 lakh)

Adds gold hedge and moderate interest (~2.5%).

Good allocation for inflation buffer and equity hedge.

These three form stable core. They complement equity mutual funds.

Additional Asset Class Suggestions
Short?term debt or low?duration funds

Useful to park upcoming lump sum or reserve cash.

Helps during market corrections.

Consider Rs?2,500/month for emergency buffer.

Gold ETF or gold fund (optional)

You have SGB; adding gold ETF increases gold weight.

If gold allocation stays ~5–7%, fine.

Avoid raising gold exposure too much.

International equity funds (optional)

Small exposure (5%) helps global diversification.

Acts as hedge to domestic volatility and currency moves.

Avoiding Index and Direct Plan Pitfalls
Index funds track index blindly; offer no manager to act.

In adversity, index falls without buffer.

Actively managed funds adapt, exit, and rebalance.

Direct plans lack advisory guidance and monitoring.

Regular plans via CFP ensure disciplined reviews and rebalancing.

They help manage emotions and allocation drift.

Prefer regular plans with CFP-backed MFDs for strategic portfolio support.

Managing Taxation Efficiently
Equity funds held beyond 1 year get LTCG tax (12.5% on gains above Rs?1.25 lakh).

Short?term capital gains (

...Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 13, 2025Hindi
Money
Hi Hemanth, I am 26 and currently starting SIP 9 months ago . Nippon small cap -2k Quant small cap -3.3k Bandhan small cap - 2k Motilal Midcap - 2.5k Sbi long term equity - 2k Sbi psu - 50k lumpsum Could you please suggest portfolio allocation and if I want to increase my from 13300 to 40000
Ans: I see you're a disciplined saver, Hemanth. You invest Rs 13,300 monthly across small?cap, mid?cap, and PSU equity. That shows strong growth intent. You now want to increase this to Rs 40,000. Let me provide you a full 360° action plan with deeper insights.

Assessing Your Current Portfolio Structure
You already invest in small?cap funds (two of them).

You hold a mid?cap fund and a long?term equity fund.

You made a large lumpsum in PSU equity fund.

Overall, most is in high?risk funds.

Exposure to mid and small caps is heavy.

That can bring severe swings in short time.

But higher risk often leads to higher long?term returns.

Your age (26) allows aggressive risk.

Yet, it's wise to diversify and balance.

Defining Your Investment Goals
What goals do you plan for using this money?

Retirement, home, travel, or buying car?

Also consider time horizon: 5 years, 10 years?

Clear goals improve strategy and fund selection.

Let me assume long?term horizons (7+ years).

That fits your current fund style well.

Importance of Diversification
Right now, your equity allocation is skewed.

Small and mid caps dominate your portfolio.

That may lead to high volatility.

Consider adding safer equity categories.

Diversification reduces risk and smoothens returns.

Recommended Portfolio Allocation for Rs?13,300
Let us review your current corpus:

Small Cap A: Rs?2,000

Small Cap B: Rs?3,300

Mid Cap: Rs?2,000

Long?term equity: Rs?2,500

PSU Equity (lump sum): Rs?50,000 one time

Total monthly SIP: Rs?10,000

Current allocation by category (approx):

Small?cap: ~41%

Mid?cap: ~15%

Large?cap / long?term equity: ~25%

PSU equity (one?off): ~19%

Rebalancing Your Current Investments
Because small and mid cap exposure is high, do partial adjustments:

Reduce SIPs in small?cap funds gradually
Move exposures to safer categories over 6–12 months.

Add large?cap equity exposure
Large caps give stability and visible returns.

Include hybrid or balanced funds
Helps reduce overall volatility.

Keep existing PSU equity if conviction remains
But don't increase it further unless view on PSU is strong.

Fund Categories to Add
1. Large?Cap Equity Funds

Invests in top 100 companies.

Lower volatility than small / mid caps.

Good for steady wealth accumulation.

2. Aggressive Hybrid Funds

Mix of ~70% equity and ~30% debt.

Provides partial downside cushion.

Helps reduce overall portfolio swings.

3. Flexi?Cap / Multi?Asset Funds

Manager can rotate among equity, debt, gold.

Good for balanced yet equity?oriented growth.

Helps manage risk across cycles.

4. Short?Term Debt or Low?Duration Funds

To balance equity risk.

Provide liquidity and safety.

Essential in case you need money soon.

Suggested Monthly Allocation for Rs?40,000
Let us allocate the increased amount smartly to meet long?term goals:

Rs?10,000 → existing small?cap funds (reduce slowly later)

Rs?5,000 → mid?cap fund

Rs?8,000 → large?cap equity fund

Rs?7,000 → aggressive hybrid fund

Rs?5,000 → flexi?cap or multi?asset fund

Rs?3,000 → short?term debt fund

Rs?2,000 → gold ETF (only for hedging)

This totals Rs?40,000. Now your portfolio is more balanced while growth?oriented.

Why Include These Categories
Large?Cap Equity

Offers stability and steady growth.

Helps cushion extreme volatility.

Large companies often beat the market in downturns.

Aggressive Hybrid

Balanced equity and debt mix.

Reduces sharp equity fall?downs.

Good choice for moderately risky investors.

Flexi?Cap / Multi?Asset

Adaptive allocation reduces manual switching.

Helps you stay steady in changing markets.

You get equity upside and debt protection.

Short?Term Debt

Acts as portfolio cushion.

Useful for emergencies or goal nearing timeframe.

Adds predictability to returns.

Gold ETF (small portion)

Gold acts as inflation hedge.

Helps when equity market falls.

But gold gives no dividend, no interest.

So keep it small to avoid drag.

Dangers of Index Funds
I note you did not use index funds. That is smart:

Index funds simply replicate index. No active oversight.

They offer no manager to exit before fall.

No real strategy to protect capital.

Actively managed funds help preserve value.

Experiencing high return or rapid recovery is higher.

So we favour actively managed funds throughout.

Risks in Direct Plans
If you invest through direct plans:

Costs are lower, but no support for advice.

You may pick wrong funds unknowingly.

No regular fund reviews happen.

CFP?backed MFD ensures rebalancing and monitoring.

Mistakes are common in self?managed portfolios.

So regular plan with CFP is ideal for you.

Managing the Lump Sum in PSU Equity
You invested Rs?50,000 lump sum recently:

PSU funds can be volatile based on economic cycles.

If you believe in PSU growth potential, hold it.

Else, you may consider gradual exit or redistribution.

Balance with new categories as your SIPs start.

Tax Planning Considerations
Equity funds hold beyond 1 year, gives LTCG.

LTCG above Rs?1.25 lakh taxed at 12.5%.

STCG (under 1 year) taxed at 20%.

Debt funds taxed as per your income slab.

SIPs have staggered entries, manage tax per unit.

Try to redeem older units first to reduce STCG.

A CFP?backed MFD helps with tax?efficient exits.

Rebalancing and Monitoring
Review portfolio every 6–12 months.

Check if large?cap or debt part needs increase.

If small?cap grows too big, reduce it.

Rebalance using switch method, not redemption.

Keeps allocation aligned with goals and risk.

Keep SIP Discipline Through Downturns
Equity market declines are normal.

SIPs during fall give good buying opportunities.

Do not stop SIP due to market fear.

Stop only if you lose employment or face emergencies.

Continue investing steadily for superior results.

Insurance and Emergency Backup
Ensure you have adequate term insurance.

No need for ULIP or endowment plans.

You hold emergency fund; that's good.

Maintain it; avoid breaking it for SIP.

Final Insights
Your journey shows strong intent and intention.
By adding stable categories, you deepen portfolio resilience.
A smart mix of large?cap, hybrid, flexi?cap, debt, gold ETF gives balance.
Stay disciplined, review regularly, adjust allocations as needed.
Use CFP?backed regular funds for expert guidance and taxes.
Avoid index funds, direct plans and annuities.
Let your disciplined SIP grow into a well?balanced wealth engine.
Continue goal planning and align fund mix with horizon.
Your growth phase now needs smart foundation.
You are building strong financial habits—keep going.

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x