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

Ramalingam Kalirajan  |8735 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 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
Vaman Question by Vaman on May 23, 2023Hindi
Listen
Money

Should I continue my investment of rupees 25000 each in kotak international REIT fund and Kotak global innovation fund or do you advise redeem the same and invest in Hdfc defence fund or convert the same to SIP

Ans: Let's evaluate your investments in Kotak International REIT Fund and Kotak Global Innovation Fund to determine whether to continue, redeem, or switch.

Thematic funds, such as Kotak Global Innovation Fund, focus on specific sectors or themes, which can lead to higher volatility and risk. They are susceptible to market fluctuations and regulatory changes, making them less suitable for investors seeking stable, long-term growth.

Considering Limited Exposure to REITs:

While Kotak International REIT Fund provides exposure to global real estate investment trusts (REITs), it's essential to note that REITs should only constitute a limited portion of your portfolio. Overexposure to REITs can increase portfolio risk, especially during economic downturns or changes in real estate market conditions.

Exploring Broad-Based Diversified Active Regular Funds:

Elaborating Advantages:

Diversification: Broad-based diversified active regular funds invest across multiple sectors and asset classes, reducing concentration risk. They offer exposure to a wide range of companies, industries, and geographies, spreading risk and enhancing portfolio stability.

Risk Management: Active fund management allows fund managers to adapt to changing market conditions, seize opportunities, and mitigate risks. Fund managers conduct in-depth research and analysis to select high-quality stocks, potentially outperforming market benchmarks over the long term.

Stable Growth: By investing in established companies with strong fundamentals, broad-based diversified funds aim to deliver consistent and stable growth over time. They offer a balanced approach to wealth accumulation, catering to investors' long-term financial goals.

Consultation with a Certified Financial Planner:

Engage with a Certified Financial Planner (CFP) to discuss your investment objectives, risk tolerance, and portfolio allocation. A CFP can provide personalized guidance on optimizing your investment strategy and selecting suitable funds aligned with your financial goals.

Conclusion:

In conclusion, considering the disadvantages of thematic funds and the need for limited exposure to REITs, it's advisable to redeem investments in Kotak International REIT Fund and Kotak Global Innovation Fund. Redirecting funds towards broad-based diversified active regular funds offers diversification, risk management, and stable growth potential, aligning with your long-term investment objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |8735 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2025

Money
Dear sirs good day, i have invested about 8.4 lakhs in KOTAK FLEXICAP FUND-DIIRECT GROWTH & 3.4 LAKHS IN KOTAK EMERGING EQUITY FUND DIRECT PLAN. For now stopped SIP in both. Could you pl advise is it worth to continue SIP any one of above if yes which one? or to remdem or leave it as it is or to do STP from one to another?. Thanks in advance.
Ans: Your investments show a good level of financial discipline.
It is important now to evaluate them carefully.
Let us explore from all angles to guide you right.

Overview of Your Investments
You have invested Rs. 8.4 lakhs in a flexi-cap equity mutual fund.

You have also invested Rs. 3.4 lakhs in a mid-cap equity mutual fund.

Currently, SIPs in both funds are stopped.

Performance and Risk Understanding
Flexi-Cap Equity Mutual Fund
This fund invests across large-cap, mid-cap and small-cap stocks.

It gives broad diversification across sectors and companies.

These funds are more stable in down markets than pure mid or small caps.

Ideal for moderate to long-term investors who want steady growth.

Lower volatility compared to mid and small-cap funds.

Mid-Cap Equity Mutual Fund
This fund invests in medium-sized companies with high growth potential.

It has more risk and more reward possibilities than flexi-cap.

Suitable only if your risk appetite is high and time horizon is long.

Short-term performance can be very volatile.

These funds do well in bullish markets, but fall faster in corrections.

Key Observations on Your Investment Mix
Your major portion is in the flexi-cap fund.

Mid-cap exposure is much smaller, which is good for risk control.

You have diversified across fund types, which is smart investing.

Now, decisions should be based on your future goals and time horizon.

SIP Decision – Continue or Not?
Should You Resume SIP in Flexi-Cap Fund?
Yes, flexi-cap funds suit long-term investors with balanced risk profile.

They give exposure to multiple segments of the market.

SIPs help in rupee cost averaging during market ups and downs.

It is a better choice to restart SIP in this fund.

Continue if your goal is 5+ years away and you want moderate risk.

Should You Resume SIP in Mid-Cap Fund?
Not advisable unless your risk tolerance is high.

Past returns are strong but risk is much higher.

Avoid fresh investments if goal is short-term or if markets are volatile.

You can hold your existing investment and wait for long-term growth.

Don't resume SIP unless you’re very confident with market movements.

What About STP (Systematic Transfer Plan)?
STP works best when moving from low-risk to high-risk funds gradually.

Both your funds are equity-based with high volatility.

Doing STP between them won’t reduce your risk.

No strong advantage in switching from one equity fund to another here.

Better to keep your funds where they are, based on your goals.

What Should You Do Next?
Review Your Financial Goals
What is your investment time horizon?

Is it for retirement, education, home, or wealth creation?

Match the fund types with your goals.

Equity funds are best if your goal is 5 years or more.

Avoid touching these funds for short-term needs.

Assess Your Risk Profile Again
Can you tolerate market ups and downs?

Mid-caps can fall 20–30% in a bad year.

Flexi-caps are slightly safer but still volatile.

Review your mental comfort with losses during down cycles.

If you feel uncomfortable, reduce equity exposure slowly.

Important Note on Direct Mutual Funds
Direct funds charge lower expense ratio.

But they come with no professional support.

No monitoring, no guidance on when to switch or rebalance.

Mistakes in choosing or staying in wrong fund can harm returns.

Investing through a trusted MFD with CFP qualification is safer.

They give timely advice and personalized portfolio reviews.

Long-term value comes from right guidance, not just lower fees.

Better to use regular plans through qualified planners.

Taxation Angle (If You Sell)
If you sell within one year, 20% tax is on short-term gains.

If you sell after one year, gains above Rs. 1.25 lakh are taxed at 12.5%.

Mid-cap funds may have more capital gains if held long.

Check holding period before selling to avoid unnecessary tax.

Better to wait for long-term status before any redemption.

Portfolio Rebalancing – Is It Needed?
Rebalancing is needed only if your goals or risk profile change.

Your mix now is around 70:30 flexi to mid-cap.

That is reasonable for a balanced investor.

Only rebalance if you add new goals or want to reduce risk.

No need for urgent switching or reshuffling at this point.

When to Consider Redemption
Only if your goal is approaching.

Or if you need the funds for any emergency.

Else, stay invested and allow compounding to work.

Redemption should not be based on market noise.

Base it only on your personal financial plan.

Suggested 360-Degree Approach
Resume SIP in flexi-cap fund for long-term growth.

Hold mid-cap investment and let it grow over time.

Do not shift money between these funds via STP.

Review your goals, risk profile, and investment horizon regularly.

Avoid using direct mutual funds to get the right guidance.

Use a certified financial planner for long-term investment health.

Keep your emotions away from short-term market moves.

Focus on your goals, not on recent returns.

Finally
You have done a good job by investing early and diversifying.

Now it’s time to take the next step smartly.

A systematic and goal-oriented strategy works better than reactive moves.

Continue with discipline and professional support.

Let your portfolio grow quietly with time and patience.

Keep monitoring your portfolio with a certified planner’s help.

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  |5645 Answers  |Ask -

Career Counsellor - Answered on Jun 02, 2025

Listen
Career
Sir,i am a 12th class student of 2024-25 batch with pcb from chse (odisha state board) . I want to pursue btech cse from IIIT BHUBANESWAR OR NIT ROURKELA. Can i apply for jee mains if i will add only mathematics from nios leading to 2 marksheets ,one from chse containing PCB ,english and statistics and another from nios with only maths.
Ans: With a JEE Main percentile of 93.7 (expected CRL rank ~94,500), admission to CSE in NITs/IIITs via JoSAA/CSAB is unlikely, as top NITs like NIT Trichy (CSE cutoff: ~4,661–9,271) and IIIT Hyderabad (CSE cutoff: ~1,500–6,000) require ranks below 20,000. However, non-CSE branches such as Mechanical and Civil Engineering at NIT Agartala (cutoff: ~180,051) or Electronics and Communication Engineering at IIITDM Jabalpur (ECE cutoff: ~17,195) may become available in later CSAB rounds, although prioritizing these options risks losing current offers. Among existing options, VIT Vellore CSE (93% placement rate, 867+ recruiters like Microsoft/Amazon) offers the strongest industry network and academic rigor, followed by NMIMS Mumbai CSE (prime location, ~90% placements in tech roles). UPES Dehradun (96% placements) and SRM Main Campus (~85% placements) lag in institutional reputation compared to VIT/NMIMS. Prioritize VIT Vellore CSE for optimal career prospects, while monitoring CSAB for niche NIT/IIIT branches as backups and also take into consideration the fee affordability. All the BEST for your Admission & a Prosperous Future!

Follow RediffGURURS 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