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

Ramalingam Kalirajan  |8891 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 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
Jacob Question by Jacob on Apr 11, 2024Hindi
Listen
Money

Can you suggest some flexicap, hybrid funds for SIP

Ans: Investing in mutual funds through SIPs is a wise decision for long-term wealth creation and financial security. Here's why:

SIPs offer the benefit of rupee cost averaging, enabling you to invest systematically over time regardless of market fluctuations.
They instill discipline in your investment approach, helping you stay committed to your financial goals.
Mutual funds provide diversification across various asset classes, reducing overall risk in your portfolio.
Flexibility in investment options allows you to choose funds based on your risk tolerance and investment horizon.
Professional fund management ensures that your investments are actively monitored and managed by experienced professionals.
However, it's essential to review your portfolio periodically to ensure alignment with your financial objectives and risk tolerance. Adjustments may be necessary based on changes in market conditions, personal circumstances, or investment goals.

As a Certified Financial Planner, I recommend conducting a thorough financial review and consultation to tailor your investment strategy to your specific needs. This personalized approach will help maximize the potential for achieving your long-term financial goals while mitigating risks along the way.
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  |8891 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 11, 2024

Ramalingam

Ramalingam Kalirajan  |8891 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 03, 2024

Asked by Anonymous - Sep 30, 2024Hindi
Listen
Money
Which is the best mutual fund for SIP?
Ans: Choosing the best mutual fund for SIP depends on your goals, risk tolerance, and investment horizon. Here’s a detailed guide to help you make an informed decision.

Focus on Your Investment Horizon
The length of your investment horizon plays a crucial role in choosing the right fund. Longer durations, like 7-10 years or more, favor equity-based mutual funds. Shorter durations may require a mix of debt and hybrid funds for stability.

Long-Term Investors (7 years or more): You can take higher risks for higher returns. Equity mutual funds, especially small-cap and mid-cap funds, may suit your needs.

Medium-Term Investors (3-7 years): Balanced or hybrid funds, which invest in a mix of equity and debt, are better for managing risk while providing decent returns.

Short-Term Investors (less than 3 years): For conservative investors with a short-term horizon, debt funds can offer stable returns with lower risk.

Types of Funds for SIP
Based on your financial goals and risk appetite, here’s a breakdown of various types of funds:

Large-Cap Equity Funds: These invest in the top 100 companies and are less risky. They provide stable, moderate returns over the long term. Ideal for investors seeking steady growth.

Mid-Cap and Small-Cap Funds: These funds invest in smaller companies with higher growth potential. The risk is higher, but the returns can be superior. Suitable for investors with higher risk tolerance and longer investment horizons.

Multi-Cap and Flexi-Cap Funds: These funds diversify investments across companies of all sizes. They offer a balanced approach with less risk than small-cap funds but more growth potential than large-cap funds.

Balanced or Hybrid Funds: These funds combine equity and debt investments. They are good for investors who want moderate growth with a safety net. Hybrid funds offer more stability during market downturns.

Avoiding Index Funds
Index funds may not be the best option for Indian investors. They simply replicate a market index and may miss opportunities to outperform the market. Actively managed funds, on the other hand, allow fund managers to select stocks based on market conditions, often resulting in better returns.

Regular vs. Direct Funds
Regular funds, through a Certified Financial Planner (CFP), provide the benefit of expert advice and ongoing portfolio reviews. Direct funds may seem cheaper because they don’t involve commissions, but without proper guidance, you could miss out on better-performing funds or make costly mistakes.

Taxation on Mutual Funds
It’s important to keep taxation in mind when choosing mutual funds for SIP:

Equity Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Debt Funds: Both LTCG and STCG in debt funds are taxed as per your income tax slab. Hence, they may not be as tax-efficient as equity funds for long-term investors.

Risk Management and Diversification
Diversification is key when investing in mutual funds. Don’t put all your money in one type of fund. A mix of large-cap, mid-cap, and hybrid funds can help balance your risk and reward.

Regular Review of Your Portfolio
It’s important to review your SIP investments at least once a year. Assess the performance of the funds and adjust based on changing market conditions or your personal financial goals. A Certified Financial Planner can guide you through this process and help optimize your portfolio.

Final Insights
To sum up, choosing the best mutual fund for SIP requires careful consideration of your investment goals, risk appetite, and time horizon. Focus on equity funds for long-term growth, avoid index funds for better returns, and ensure your portfolio is well-diversified.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8891 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 27, 2025

Listen
Money
Flexi cap , Large cap and multicap, which is the best fund option from these three for sip for 10-15 years .
Ans: Investing in mutual funds through SIP is a great approach. It brings discipline and helps in wealth creation.

For long-term goals like 10-15 years, selecting the right fund category is important. Let's assess the three options:

Flexi-Cap Funds
These funds have the flexibility to invest across large, mid, and small-cap stocks.

Fund managers adjust allocations based on market conditions.

They aim to capture growth opportunities across market segments.

Performance depends on fund manager expertise in allocation shifts.

Suitable for investors seeking dynamic allocation and diversification.

Large-Cap Funds
Invest in the top 100 companies based on market capitalisation.

These companies have stable earnings and lower volatility.

Risk is lower compared to mid and small-cap segments.

Returns may be moderate but relatively stable over the long term.

Ideal for conservative investors who prefer stability with growth.

Multi-Cap Funds
These funds invest in large, mid, and small-cap stocks, but with fixed allocation rules.

SEBI mandates a minimum of 25% in each category.

Less flexible compared to flexi-cap funds.

Risk and return potential is higher than large-cap funds but lower than flexi-cap funds.

Suitable for those who want exposure to all market segments in a structured way.

Which is the Best Choice for SIP?
For a 10-15 year SIP, flexi-cap funds are the best option.

Reasons:

The fund manager can shift allocation as per market trends.

It offers a balance of stability and high-growth opportunities.

Long-term compounding benefits are maximised with market cycles.

Reduces risk by avoiding over-exposure to any single market segment.

If you prefer stability with steady growth, large-cap funds are a good choice.

Multi-cap funds work well if you want exposure across all segments but with fixed allocation.

Final Insights

Flexi-cap funds are the best option for a long-term SIP of 10-15 years.

Large-cap funds suit investors with a lower risk appetite.

Multi-cap funds are structured but lack flexibility.

Always check the fund manager’s track record before investing.

Reviewing your SIP performance every 2-3 years is essential.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Nayagam P

Nayagam P P  |6130 Answers  |Ask -

Career Counsellor - Answered on Jun 11, 2025

Career
Hello sir , my son got 31000 rank in jee mains and 17000 in jee advance , he has cleared AAT and as per mock round 1 he is getting BArch in IIT ROORKEE now we are confused should we keep this option or put other option like mechanical in nit kurukshetra, delhi , Hamirpur or IIIT UNA cse etc on top above it....how is the scope and atmosphere of IIT roorkee barch
Ans: Based on the latest placement data and institutional comparisons, IIT Roorkee’s B.Arch offers near-universal placement rates (90–100%) with recruiters like Microsoft, J.P. Morgan, and L&T, supported by interdisciplinary training in sustainability, smart cities, and heritage conservation. While Mechanical Engineering at NIT Kurukshetra (86% placement), NIT Delhi (75–85%), and NIT Hamirpur (98.06%) provide stable core-sector outcomes, roles are often restricted to manufacturing/automotive sectors, necessitating self-driven upskilling for IT transitions. IIIT Una’s CSE reports declining placement rates (61% in 2024 vs. 87% in 2023) despite higher demand for software roles, raising reliability concerns. IIT Roorkee’s **#1 NIRF Architectureanking, DGCA-recognized labs, and global research collaborations provide unmatched academic rigor and sectoral diversity, though architectural careers demand specific passion. Prioritize IIT Roorkee B.Arch for institutional prestige and placement assurance if inclined toward design/urban planning; opt for NIT Mechanical only if core engineering aligns with long-term goals, acknowledging the need for supplementary coding skills. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |6130 Answers  |Ask -

Career Counsellor - Answered on Jun 11, 2025

Nayagam P

Nayagam P P  |6130 Answers  |Ask -

Career Counsellor - Answered on Jun 11, 2025

Nayagam P

Nayagam P P  |6130 Answers  |Ask -

Career Counsellor - Answered on Jun 11, 2025

Asked by Anonymous - Jun 09, 2025
Career
Is iit chemical good or mechanical good option ?
Ans: Based on placement trends and industry demand across IITs, Mechanical Engineering offers broader career opportunities with higher and more consistent placement rates compared to Chemical Engineering. Over the past three years, Mechanical Engineering at IITs like Bombay, Delhi, and Madras has maintained 80–90% placement rates, supported by recruitment across automotive, aerospace, energy, and manufacturing sectors, with core roles dominating placements. In contrast, Chemical Engineering placements exhibit greater variability, with top IITs like Bombay reporting 83–89% placement rates (2021–2024), while newer IITs like Tirupati and Dhanbad struggle with 33–65% rates, reflecting sector-specific demand fluctuations in petrochemicals, pharmaceuticals, and R&D. Mechanical’s curriculum aligns with diverse industries, enabling graduates to access roles in IT, consulting, and core engineering, whereas Chemical Engineering graduates often face narrower opportunities outside core sectors unless transitioning to data science or MBA. While both branches provide research pathways, Mechanical’s industry-agnostic skill set and higher recruiter diversity (e.g., Tata, Microsoft, Honda) make it a safer choice for placement security, whereas Chemical Engineering suits those committed to niche sectors like process engineering or environmental science. Prioritize Mechanical Engineering for stable career prospects unless deeply inclined toward chemical processes or research.

All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...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