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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Aug 03, 2022

Mutual Fund Expert... more
Deepak Question by Deepak on Aug 03, 2022Hindi
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My age is 30 years. Out of my 35k monthly income I want to start Rs 1000 SIP in following funds. Kindly guide me on whether the selection is good to have maximum return? I will add 20% to each SIP every year:

1. Canara robeco small cap fund direct growth. 

2. PGIM India Midcap opportunity fund direct growth. 

3. Parag parikh flex cap fund direct growth. 

4. Mirae asset emerging blue chip fund direct growth. 

5. Quant tax plan direct growth. 

Ans: Good funds; please start asap.

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  |7012 Answers  |Ask -

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

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I am 43 years old and a salaried person. Started in SIP in 2018. Kindly suggest about the funds. Following are my current mutual fund investments: 1) Franklin India Prima fund Rs.1000 2) Invesco India Contra Fund Rs.6000 3) Kotak flexicap fund Rs.4000 4) Mirae Large & midcap fund Rs.2000 5) Axis Bluchip fund 3500 6) Sbi Banking & financial service fund Rs.3500 7) Axis Small cap fund Rs.5000. All i have monthly SIP. please suggest me if any changes require.
Ans: It's great to see that you've started investing in mutual funds through SIPs. Here are some suggestions regarding your current mutual fund investments:

• Diversification: You have a good mix of funds across various categories, which is essential for diversification. It's important to spread your investments across different sectors and market capitalizations to reduce risk.

• Review Performance: Periodically review the performance of your funds to ensure they are meeting your expectations and performing in line with their peers and benchmarks.

• Consider Your Goals: Reflect on your financial goals, risk tolerance, and investment horizon to determine if your current funds align with your objectives. If you have specific goals such as retirement planning or wealth accumulation, consider adjusting your portfolio accordingly.

• Evaluate Fund Managers: Assess the track record and expertise of the fund managers managing your investments. Look for consistency in performance and a clear investment strategy aligned with your goals.

• Stay Informed: Keep yourself updated with market trends, economic developments, and changes in regulations that may impact your investments. Stay connected with your financial advisor or conduct your research to make informed decisions.

• Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) or a qualified financial advisor to get personalized advice based on your financial situation and goals. They can provide valuable insights and recommendations tailored to your needs.

Overall, while your current mutual fund portfolio appears well-diversified, it's essential to periodically review and adjust your investments based on changes in your financial situation and market conditions. By staying disciplined and informed, you can work towards achieving your financial goals effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |7012 Answers  |Ask -

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

Asked by Anonymous - Jul 14, 2024Hindi
Money
I am 37 years old and a govt servant.i just recently started sip in four funds 1.Mirae asset large and midcap fund direct growth. _1k 2.quant large and mid cap fund direct growth_1k 3.kotak equity opportunities fund direct growth_1k 4.icici prudential retirement fund pure equity plan direct growth -5k Is it good for a term like 10 years?and if i want to invest 5k more then where should i invest for a term of 15 to 20 years.please advice .thank you
Ans: As a government servant at 37, planning for the future is crucial. Starting SIPs in mutual funds is a wise step, but evaluating and refining your strategy can optimize your returns. This analysis will guide you through your current investments and suggest additional avenues for a long-term horizon.

Current SIP Analysis

You've begun SIPs in four mutual funds with a 10-year perspective:

Mirae Asset Large and Midcap Fund
Quant Large and Midcap Fund
Kotak Equity Opportunities Fund
ICICI Prudential Retirement Fund Pure Equity Plan
Your current allocation in these funds is commendable. Let's evaluate the benefits and potential improvements.

1. Mirae Asset Large and Midcap Fund

This fund invests in both large and midcap stocks. It offers growth potential from midcaps and stability from large caps. This balanced approach can yield good returns over the long term.

2. Quant Large and Midcap Fund

Similar to the Mirae Asset Fund, this fund also diversifies between large and midcap stocks. Diversification is a key strategy to mitigate risk while aiming for growth.

3. Kotak Equity Opportunities Fund

This fund focuses on equity opportunities across market caps. It's known for good management and consistent performance. It adds diversity to your portfolio.

4. ICICI Prudential Retirement Fund Pure Equity Plan

This fund is designed for long-term goals like retirement. It invests primarily in equities, which can offer higher returns over an extended period.

Your portfolio currently has a good mix of large-cap stability and mid-cap growth potential. However, since you're considering a long-term investment horizon of 15-20 years, let's explore where you can invest an additional Rs 5,000 per month.

Evaluating Direct Funds vs Regular Funds

You've invested in direct plans, which typically have lower expense ratios. However, regular funds through a Certified Financial Planner (CFP) have their advantages. A CFP provides personalized advice, timely reviews, and adjustments to your portfolio. These services can potentially enhance your investment performance, justifying the slightly higher expense ratios.

Long-term Investment Strategy

For a long-term investment horizon of 15-20 years, consider the following factors:

Diversification: Spread investments across different asset classes and sectors.
Risk Tolerance: Understand your risk appetite and invest accordingly.
Consistent Review: Regularly review and adjust your portfolio based on market conditions and personal goals.
Recommended Investment Avenues

To invest an additional Rs 5,000 per month, here are some funds and strategies to consider:

1. Flexi Cap Funds

Flexi cap funds invest in stocks across market capitalizations. They offer flexibility to shift investments between large, mid, and small caps based on market conditions. This dynamic allocation can capture opportunities across the spectrum and provide robust returns over the long term.

2. Mid Cap Funds

Mid cap funds focus on medium-sized companies with high growth potential. These companies often grow faster than large caps and can offer higher returns. However, they come with higher risk, suitable for a long-term horizon.

3. Sectoral or Thematic Funds

These funds invest in specific sectors like technology, healthcare, or financial services. Investing in a growing sector can yield substantial returns. However, they are riskier and require careful selection and timing. For example, the healthcare sector in India is poised for significant growth due to increasing health awareness and spending.

4. International Funds

Investing in international funds provides exposure to global markets. This diversification can reduce risk associated with the Indian market. It also allows you to capitalize on the growth of developed economies and emerging markets. For instance, a fund investing in US technology stocks can offer high growth potential.

5. Balanced or Hybrid Funds

Balanced funds invest in both equity and debt instruments. They provide growth potential with equity and stability with debt. This mix can be suitable for moderate risk tolerance and long-term investment. These funds can provide a cushion during market volatility, ensuring smoother returns.

6. Multi-Asset Funds

Multi-asset funds diversify across various asset classes, including equity, debt, and gold. This diversification reduces risk and can provide steady returns. Investing in multiple assets helps in balancing the portfolio against market fluctuations.

The Benefits of Actively Managed Funds

While index funds passively track market indices, actively managed funds have fund managers making strategic decisions. Actively managed funds aim to outperform the market, providing higher returns. They adjust portfolios based on market trends, economic conditions, and company performance. This active management justifies the slightly higher expense ratios, as it can potentially lead to better returns than passive funds.

Implementing the Strategy

Based on the analysis, here's a suggested allocation for your additional Rs 5,000 investment:

Flexi Cap Fund: Rs 1,500
Mid Cap Fund: Rs 1,000
Sectoral/Thematic Fund: Rs 1,000
International Fund: Rs 1,000
Multi-Asset Fund: Rs 500
This allocation provides a balanced mix of growth potential and risk mitigation.

Regular Review and Adjustment

Investing is not a one-time activity. Regularly review your portfolio to ensure it aligns with your goals. A Certified Financial Planner can assist in this process, providing insights and adjustments based on market trends and your evolving financial situation.

Final Insights

Investing for the long term requires a strategic approach. Your current SIPs are a good start, and with the additional Rs 5,000 investment, you can further strengthen your portfolio. Diversification across different asset classes and sectors is key to maximizing returns and minimizing risk.

Consider the benefits of regular funds through a Certified Financial Planner. While they have higher expense ratios, the personalized advice and active management can enhance your investment performance.

Focus on a balanced mix of flexi cap, mid cap, sectoral/thematic, international, and multi-asset funds. This diversified approach can capture growth opportunities across markets and sectors, ensuring a robust and resilient portfolio.

Regularly review your investments, adjust based on performance and market conditions, and stay committed to your long-term goals. With careful planning and strategic investments, you can build a substantial corpus for your future needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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hello, I'm a 49F married for 21years. It was an arranged match, and from day one my husband and sister have not gotten along. I've also been naive and under my sister's control for a long time, which has angered my husband a lot. In March they both had a verbal altercation and have not been on talking terms. Now my husband is not letting my 18y son meet my sister. My husband is demanding a sorry from my sister, post which only my son can meet her. I'm really sad as my sister dearly loves my son, also I don't feel its morally right to involve children in family politics. And my sister will not apologize to my husband. Need help to understand on how to get my innocent son out of this mess. My husband is very controlling, very angry, very interfering person, overall he has a very negative perspective on everything.
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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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