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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Dec 18, 2020

Mutual Fund Expert... more
santosh Question by santosh on Dec 18, 2020Hindi
Money

I have 8 MF ongoing SIPs, which started recently, kindly review and advise details as below. further in addition to this if i want to invest sum lumpsum amount may 10 lacs, which better option you suggest

Ans:
Name of the Fund Category RankMF Star Rating Recommendation
Santosh
Motilal Oswal Nasdaq 100 FOF Direct  Growth FoFs (Overseas) 5 Please Continue
IDFC Banking & PSU Fund - Direct - Growth Debt - Banking and PSU Fund 4 Please Continue
SBI Small Cap Fund - Direct - Growth Equity - Small cap Fund 3 Better to consider Axis Small Cap Fund - Growth OR Kotak Small Cap Fund - Growth
AXIS GROWTH OPPORTUNITIES FUND - DIRECT PLAN GROWTH Equity - Large & Mid Cap Fund 4 Please Continue
HDFC Index Fund - SENSEX Plan - Direct - Growth Index Funds - Sensex 5 Please Continue
Mirae Asset Emerging Bluechip Fund Direct Growth Equity - Large & Mid Cap Fund 4 Please Continue
BHARAT BOND FOF - APRIL 2025 - DIRECT PLAN - GROWTH FoFs (Domestic) - Debt Oriented 5 Please Continue
Axis Midcap Fund - Direct - Growth Equity - Mid Cap Fund 5 Please Continue
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  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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Money
Hi sir I am 36 old men. I am planning to invest in MF can you suggest weather I invest in lumpsum or sip. For lumpsum I can offerd up to 25L. and for SIP 20000
Ans: Investing in mutual funds is a wise decision for long-term growth. Your willingness to invest a significant amount both as a lump sum and through SIPs shows your commitment to building wealth.

Lump Sum Investment vs. Systematic Investment Plan (SIP)
Both lump sum investments and SIPs have their advantages and considerations. Let's evaluate them to help you make an informed decision.

Lump Sum Investment
Advantages:

Immediate Exposure: Investing ?25 lakhs as a lump sum gives immediate exposure to the market.
Potential for Higher Returns: In a rising market, a lump sum investment can generate higher returns compared to phased investments.
Convenience: It is a one-time investment, saving you from the hassle of regular contributions.
Considerations:

Market Timing Risk: Investing a large amount at once exposes you to the risk of market volatility. If the market declines soon after your investment, it can significantly impact your returns.
Emotional Stress: A lump sum investment can be stressful, especially if market fluctuations occur shortly after investing.
Systematic Investment Plan (SIP)
Advantages:

Rupee Cost Averaging: SIPs help in averaging the purchase cost over time, reducing the impact of market volatility. You buy more units when prices are low and fewer when prices are high.
Disciplined Investing: SIPs encourage regular investing, promoting financial discipline and long-term wealth accumulation.
Reduced Emotional Stress: Smaller, regular investments are less stressful and more manageable compared to a large lump sum investment.
Considerations:

Gradual Exposure: SIPs provide gradual market exposure, which may result in lower returns during a prolonged bull market compared to a lump sum investment.
Commitment: SIPs require a long-term commitment to see significant results.
Recommended Strategy: Combining Both
To optimize your investment, consider combining lump sum and SIP strategies. This approach leverages the advantages of both methods while mitigating their respective risks.

1. Initial Lump Sum Investment:

Invest a portion of your ?25 lakhs as a lump sum in diversified mutual funds.
Choose funds based on your risk tolerance and financial goals. Equity-oriented hybrid funds and balanced advantage funds are good options for moderate risk.
This gives immediate market exposure and potential for growth.
2. Systematic Investment Plan (SIP):

Start an SIP with ?20,000 per month.
Invest in a mix of equity funds, balanced funds, and debt funds to diversify your portfolio.
SIPs will help in rupee cost averaging and maintaining investment discipline.
Diversifying Your Investments
Equity-Oriented Hybrid Funds:

These funds invest in a mix of equities and debt, offering balanced growth and stability.
Actively managed funds provide the advantage of professional management and strategic asset allocation.
Balanced Advantage Funds:

These funds dynamically adjust the allocation between equity and debt based on market conditions.
They offer a balanced risk-reward ratio, making them suitable for medium-term goals.
Monitoring and Review
Regular Portfolio Review:

Periodically review your investment portfolio to ensure it aligns with your financial goals and market conditions.
Rebalance your portfolio if needed to maintain the desired asset allocation.
Consult a Certified Financial Planner (CFP):

Engage a CFP for personalized advice and ongoing support.
A CFP can help optimize your portfolio, manage risks, and ensure your investments are on track to meet your goals.
Final Thoughts
Combining lump sum and SIP investments is an effective strategy to leverage the benefits of both methods. This approach provides immediate market exposure and disciplined investing. Regularly review your portfolio and seek professional advice to ensure your investments align with your goals and risk tolerance. Your proactive approach and commitment to investing will help you achieve financial growth and stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |3811 Answers  |Ask -

Career Counsellor - Answered on Oct 13, 2024

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Career
Sir the median package at ssnce for cse core is less than rvce ise .So does it make more viable option considering placement in mind .I have a dream of becoming software engineer from my childhood. But my seniors are advising for rvce ise.what to do should I follow my dream or placement.I am a Bangalore resident and Tamil is my mother tongue.
Ans: Ashwin, my son, graduated from RVCE in 2023 and secured employment through campus placement with a reputable software company. Despite being among the highest achievers in COMEDK, he opted for ECE instead of the more accessible CSE. We did not compel him to join CSE. Following his second year, he progressively shown an interest in software and obtained several certifications through NPTEL, Internshala, and similar platforms. Regarding his experience, while ISE is commendable, CSE is the superior option. Simply enter 'RV placement statistics 2024'. Select the initial result to get the Placement Statistics of RV directly. The top placements are for Computer Science Engineering, followed by Electronics and Communication Engineering, and then Information Science Engineering. The recommendations of your seniors, your personal interests, and the branch with the highest placement statistics are distinct considerations. Kindly review the Course Curriculum for both CSE and ISE and make a decision. Kindly review one of my detailed responses below, in which I have explicitly outlined the stages, recommendations, and methods that a first-year engineering student should adhere to till their fourth year for campus placement. All the BEST for Your Prosperous Future.

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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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