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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 13, 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
Gaurav Question by Gaurav on Apr 12, 2024Hindi
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Hi Experts, I am 34 and doing SIP (5k each) in Quant Multi Asset, ICICI Equity & Debt Aggressive hybrid, ICICI small cap, Axis bluechip and Tata Resources& Energy MF for sometime now. Is this diversified enough, or needs change?

Ans: Your current SIP portfolio seems like a decent start, but it could benefit from some adjustments for better diversification:

Current Mix:

You likely have exposure to:
Large-cap stocks (through Axis Bluechip)
Mid-cap and small-cap stocks (through ICICI Small Cap)
Debt (through ICICI Equity & Debt Aggressive Hybrid)
A specific sector (Resources & Energy)
Areas for Improvement:

Sector Concentration: A sector fund like Resources & Energy carries higher risk compared to broader market funds. Consider if this aligns with your overall risk tolerance. You might want to replace it with a diversified equity fund to spread risk across different sectors.
Debt Allocation: The role of the aggressive hybrid fund is unclear. If it has a high equity allocation, you might have too much equity exposure overall. Consider a pure debt fund for a clearer asset allocation.
General Recommendations for Diversification:

Large, Mid & Small Cap Exposure: Having a mix of large, mid, and small-cap funds provides exposure to companies of different sizes and growth potential.
Multi-Asset Fund: A multi-asset fund can offer diversification across asset classes like equity, debt, and even international exposure. Consider one if you don't already have it.
Remember:

Risk Tolerance: Ensure your overall asset allocation aligns with your risk tolerance.
Review Regularly: Review your portfolio periodically and adjust based on market conditions and your evolving goals.
Professional Advice: Consulting a registered financial advisor can provide personalized guidance based on your specific circumstances.
By considering these points, you can refine your SIP strategy for a more balanced and potentially more resilient portfolio.
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  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Jan 03, 2024Hindi
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Hi, here are my SIP's. Pls let me know if the portfolio is good or should i diversify some of them. Thanks Hdfc flexi cap fund -growth Kotak flexicap fund-growth Paragraph parish flexi cap fund . Growth Same flexi cap fund -growth Hdfc focused 30 fund.growth Icici pro large and mid cap.growth Mire asset emerging blue chip -growth Icici pru bluechip fund .growth Sbi blue chip fund . Growth Hdfc mid cap opportunities fund.growth Kotak emerging equity fund.growth Mire asset multi cap fund.growth Nippon india multicap fund.growth Bandhan financial services fund-growth Hdfc transportation and logistics fund.growth Quant manufacturing fund.growth Icici pro small cap fund. Nippon india small cap fund Icici pru multi asset fund Kotak multi asset allocation fund Tata small cap fund
Ans: You've put together quite an extensive list of SIPs across various categories. While diversification is a key principle in investing, it's also essential to ensure that the portfolio aligns with your investment goals, risk tolerance, and time horizon.

Firstly, let's reflect: are there overlaps within these funds? Some of them might have similar objectives or may even hold overlapping stocks. Over-diversification can dilute returns, so it's crucial to maintain a balance.

Considering you have multiple flexi-cap funds, have you thought about the need for so many? Flexi-cap funds inherently offer flexibility to invest across market caps, so having too many might not add significant value.

Additionally, you've covered a broad spectrum from large-cap to small-cap, which is good for diversification. However, have you assessed your risk appetite given the exposure to small and mid-cap funds, which can be more volatile?

Lastly, while the list is diverse, have you considered thematic or sectoral funds' potential risks? They can be rewarding but come with higher volatility due to their specialized focus.

A Certified Financial Planner can provide a holistic view, ensuring your portfolio is both diversified and aligned with your financial goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Hi I am 30 yr old and planning to retire within 17 yrs from now. I am doing SIP as follows , please suggest if requires any diversification 1. ICICI Prudential Bluechip fund - 2K per month 2. Kotak small cap Fund - 1.5K per month 3. Kotak emerging equity fund - 2K per month 4. Quant small cap fund - 2K per month 5. Tata small cap fund - 1K per month 6. Canara Robeco Bluechip Equity fund- 2K per month 7. Parag Parikh Flexi cap fund- 2.5K per month 8. Quant mid cap -1k per month 9. Quant infrastructure -1k per month 10. Quant flexi cap 1.5 per month 11. Kotak equity hybrid 1.5K per month 12. Quant Elss fund 2k per month
Ans: It's great to see your dedication to retirement planning at such a young age. Let's evaluate your current SIP portfolio and explore potential diversification strategies to optimize your investments for your retirement goal.

Assessing Your SIP Portfolio
Your SIP portfolio consists of a diverse mix of funds across different market segments, including large-cap, small-cap, mid-cap, flexi-cap, and hybrid funds. While diversification is essential, it's also crucial to ensure that your portfolio is well-balanced and aligned with your risk tolerance and investment objectives.

Potential Diversification Strategies
1. Streamlining Fund Selection
Consider consolidating your SIPs into a more focused portfolio with a smaller number of high-quality funds. This can help simplify portfolio management and reduce overlapping holdings across funds.

2. Increasing Exposure to Large-Cap Funds
Given your relatively long investment horizon and retirement goal, consider increasing your exposure to large-cap funds. Large-cap funds offer stability and consistent returns over the long term, making them suitable for retirement planning.

3. Adding Exposure to Debt Funds
While equity funds offer the potential for higher returns, it's essential to balance risk by incorporating debt funds into your portfolio. Debt funds provide stability and income generation, helping mitigate the volatility associated with equity investments.

4. Exploring International Funds
Consider diversifying your portfolio by investing in international funds or exchange-traded funds (ETFs). International funds provide exposure to global markets and can help reduce country-specific risk associated with investing solely in domestic markets.

5. Reviewing Fund Performance
Regularly review the performance of your existing funds and replace underperforming ones with better alternatives. Look for funds with a consistent track record of performance, experienced fund managers, and a robust investment process.

Recommendations for Portfolio Optimization
Based on the above considerations, here are some recommendations for optimizing your SIP portfolio:

Consolidate Funds: Consider consolidating your SIPs into a focused portfolio of high-quality funds with a mix of large-cap, small-cap, mid-cap, flexi-cap, and hybrid funds.

Increase Exposure to Large-Cap Funds: Allocate a higher percentage of your SIP investments to large-cap funds to enhance stability and reduce portfolio volatility.

Incorporate Debt Funds: Introduce debt funds into your portfolio to balance risk and provide stability during market downturns.

Explore International Funds: Consider diversifying your portfolio by investing in international funds to access global investment opportunities and reduce country-specific risk.

Regularly Review Portfolio: Monitor the performance of your portfolio regularly and make adjustments as needed to ensure it remains aligned with your retirement goals and risk tolerance.

Seeking Professional Advice
As a Certified Financial Planner, I'm here to provide personalized advice tailored to your specific financial situation and retirement goals. I can help you navigate the complexities of portfolio diversification and ensure your investments are optimized for long-term wealth accumulation and retirement planning.

Conclusion
In conclusion, by diversifying your SIP portfolio, increasing exposure to large-cap funds, incorporating debt funds, exploring international funds, and regularly reviewing portfolio performance, you can optimize your investments for your retirement goal. Remember, retirement planning is a long-term journey, and strategic asset allocation is key to achieving your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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