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Ramalingam Kalirajan |8330 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 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

Question by BINOD on May 11, 2024Hindi

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Sir. I am doing SIP amount 6000.00through Etmoney genius growth scheme for 10 year.it rebalancing the SIP every month as per market conditions.. should I do extra sip in other scheme or increase the SIP amount in same scheme.kindly suggest

Ans: The decision on whether to add an extra SIP in a different scheme or increase the SIP amount in the same ET Money Genius Growth scheme depends on a few factors:

Current Portfolio Diversification:

Diversification Analysis: Since ET Money Genius Growth scheme is a multi-asset allocation portfolio, it inherently offers some diversification. However, to assess if it's enough, you'd need to know the asset allocation of the scheme (percentage in equities, debt, gold, etc.).
Your Risk Tolerance and Investment Goals:

Risk Tolerance: If you're comfortable with the risk profile of the ET Money Genius Growth scheme and your investment goals are aligned with its asset allocation, increasing the SIP amount in the same scheme might be suitable.
More Growth Potential: If you seek more growth potential and are comfortable with higher risk, you could consider adding an SIP in a different scheme that focuses more on equities, such as a large-cap or flexi-cap fund.
Here's a breakdown to help you decide:

Increase SIP in ET Money Genius Growth Scheme:

Pros: Simpler to manage, aligns with your current risk tolerance, potentially good for long-term wealth creation if the scheme performs well.
Cons: Limited diversification if the scheme's asset allocation doesn't fully align with your goals.
Add an SIP in a Different Scheme:

Pros: Increased diversification, potentially higher growth if the additional scheme performs well.
Cons: More complex to manage, requires research to choose a suitable scheme, might not be necessary if you're comfortable with the existing scheme's risk-reward profile.
Recommendation:

Consider consulting a Certified Financial Planner (CFP). They can analyze your existing portfolio (including the asset allocation of the ET Money Genius Growth scheme), risk tolerance, and investment goals. Based on this, they can recommend whether to increase the SIP amount in the same scheme or add an SIP in a different scheme to achieve optimal diversification and growth potential for your 10-year investment horizon.

Here are some additional points to keep in mind:

Performance Monitoring: Regardless of your decision, regularly monitor the performance of your SIPs.
Rebalancing: Even if ET Money Genius Growth scheme rebalances, you might need to rebalance your overall portfolio periodically to maintain your desired asset allocation. A CFP can advise you on this.
By carefully considering these factors and consulting a professional, you can make an informed decision about your SIP strategy.

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.