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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Aug 03, 2022

Mutual Fund Expert... more
VIJAY Question by VIJAY on Aug 03, 2022Hindi
Money

My Goals are given below:

Child Education -- child-01 -- 45 Lakh (AFter 12Yrs) Child -02 - 65 Lakh (17 Yrs) -- Total -1.1 Cr. 

Child Marriage -- 80 Lakh

Retirement -- 2.5 CR

My age is 38 Yrs. I still can work for another 15 to 20 yrs.

Current value of the Mutual fund is 10.5 lakh for the below given funds. My invested funds are given below:

Quantum India ESG Equity Fund  Sep-19 2000
Quantum Long term Equity Value Fund  Sep-19 2000
HDFC SMALL CAP FUND - Sep-19 2500
BNP Paribas Substantial Equity Hybrid Growth Direct Plan Nov-19 3000
Mirae Asset Emerging Bluechip Growth Direct Plan Nov-19 3000
Motilal Oswal Nasdaq 100 Fund Of Fund Growth Direct Plan Nov-19 1500
Motilal Oswal Nifty 50 Index Growth Direct Plan Nov-19 1000
Axis Mid Cap Growth Direct Plan Nov-19 2500
Axis Focused 25 Growth Direct Plan Nov-19 3000
Axis Flexi Cap Growth Direct Plan Nov-19 2500
Kotak Flexicap Growth Direct Plan Nov-19 2500
Kotak Emerging Equity Scheme Growth Direct Plan Nov-19 2500
ICICI Prudential US Bluechip Equity Growth Direct Plan Nov-19 1500
    29500

Also My EPF is around 15 K each month. I am ready to put in 10 to 15 thousand. Please suggest if these funds are good to meet my target or need to make any changes.

Ans: Too many funds, however most are good funds.

Do a goal based planning and attach schemes to goals, that way there will be discipline.

One set of investment with multiple goals is not advisable.

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  |10240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

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Hi Vivek.. I am 42 years old.. Have accumulated around 1.3 Crores as of today in MF(51.5 L), PPF/SSY (36 L) and EPF(46 L). Target is to reach around 10 crores in the next 13-15 years. I am a High Risk investor. I am investing in the below mutual funds for a minimum tenure of another 13 years.. UTI Nifty 50 Index (13k), Mirae Asset Large and Midcap (3k), UTI Nifty 200 Momentum 30 (18k), Quant Midcap (35k), Invesco India Midcap (35k) , Axis Small Cap (18k), Parag Parikh Flexicap (20k) and Quant Flexicap (20k) and Mirae Asset MidSmall400 Momentum Quality 100 ETF FoF (18k). Apart from this will continue investing in PPF (1.5 L yearly), Sukanya Samriddhi Yojana (1.5 L yearly) and EPF (3.4 L yearly). Am I aligned to reach the goal with the funds selected or any changes needs to be done. Pls. suggest.
Ans: Assessment of Current Portfolio

You've done a commendable job of accumulating Rs. 1.3 crores across mutual funds, PPF, SSY, and EPF. Your goal of reaching Rs. 10 crores in the next 13-15 years is ambitious yet achievable given your high-risk appetite and consistent investment strategy. Let's break down your portfolio and investment strategy to see if you're on the right track.

Mutual Fund Investments

Your mutual fund investments are diversified across various categories:

Large-cap funds for stability
Mid-cap and small-cap funds for higher growth potential
Flexi-cap funds for a balanced approach
This diversification is crucial for managing risk and optimizing returns. However, there are a few points to consider:

High Allocation to Mid-cap and Small-cap Funds: While mid-cap and small-cap funds offer higher growth potential, they are also more volatile. Ensure that you are comfortable with this level of risk, especially since a significant portion of your investments is in these categories.

Momentum Funds: Momentum funds can offer good returns during bullish markets but can be risky in volatile markets. Monitor these investments closely and be prepared to rebalance if needed.

Flexi-cap Funds: These funds provide flexibility in allocation and can adjust according to market conditions, which is beneficial. Keep a close eye on the fund managers' performance to ensure they are capitalizing on this flexibility effectively.

Disadvantages of Index Funds and Direct Funds

Index Funds: While index funds are low-cost and provide market-average returns, they lack the potential for outperformance. Actively managed funds, like the ones you have, can potentially deliver higher returns due to active stock selection and market timing.

Direct Funds: Direct funds may save on expense ratios but lack the professional advice and guidance provided by mutual fund distributors (MFDs) with CFP credentials. Regular funds, through an MFD, offer ongoing advice, market insights, and portfolio reviews, which are invaluable for long-term financial planning.

PPF, SSY, and EPF Investments

Your continued investments in PPF (Rs. 1.5 lakhs yearly), SSY (Rs. 1.5 lakhs yearly), and EPF (Rs. 3.4 lakhs yearly) provide a solid foundation of safe and tax-efficient returns. These instruments offer guaranteed returns and tax benefits, which are essential for risk management and ensuring a stable portion of your portfolio.

Suggestions for Improvement

Review Fund Performance Regularly: Actively review the performance of your mutual funds. Ensure they consistently outperform their benchmarks and peers. If a fund underperforms over an extended period, consider switching to a better-performing alternative.

Consider Professional Advice: Engage with a Certified Financial Planner (CFP) to review your portfolio periodically. They can provide personalized advice, help you navigate market volatility, and make informed decisions.

Rebalance Your Portfolio: Regularly rebalance your portfolio to maintain your desired asset allocation. This ensures you are not overexposed to any single asset class and helps in managing risk.

Emergency Fund: Ensure you have an adequate emergency fund in place. This should cover at least 6-12 months of your expenses. It provides a safety net during unforeseen circumstances without disturbing your investment strategy.

Final Insights

You have a well-diversified portfolio aligned with your high-risk tolerance and long-term goals. Your disciplined approach to investing in mutual funds, PPF, SSY, and EPF is commendable. Regular reviews, professional advice, and portfolio rebalancing will help you stay on track to achieve your goal of Rs. 10 crores in the next 13-15 years.

Stay focused and keep monitoring your investments to ensure they continue to meet your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2024

Listen
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Hi Sunil.. I am 42 years old.. Have accumulated around 1.3 Crores as of today in MF(51.5 L), PPF/SSY (36 L) and EPF(46 L). Target is to reach around 10 crores in the next 13-15 years. I am a High Risk investor. I am investing in the below mutual funds for a minimum tenure of another 13 years.. UTI Nifty 50 Index (13k), Mirae Asset Large and Midcap (3k), UTI Nifty 200 Momentum 30 (18k), Quant Midcap (35k), Invesco India Midcap (35k) , Axis Small Cap (18k), Parag Parikh Flexicap (20k) and Quant Flexicap (20k) and Mirae Asset MidSmall400 Momentum Quality 100 ETF FoF (18k). Apart from this will continue investing in PPF (1.5 L yearly), Sukanya Samriddhi Yojana (1.5 L yearly) and EPF (3.4 L yearly). Am I aligned to reach the goal with the funds selected or any changes needs to be done. Pls. suggest.
Ans: Current Financial Position
You are 42 years old.

You have accumulated Rs 1.3 crores in various investments.

Mutual Funds: Rs 51.5 lakhs

PPF/SSY: Rs 36 lakhs

EPF: Rs 46 lakhs

You are a high-risk investor.

Your goal is to reach Rs 10 crores in the next 13-15 years.

Assessment of Current Investments
Mutual Funds
Your mutual fund portfolio includes:

Large-cap, mid-cap, and small-cap funds

Flexicap funds

An ETF fund of funds

You are investing significant amounts monthly.

Provident Fund (PF) and Public Provident Fund (PPF)
You have Rs 36 lakhs in PPF/SSY and Rs 46 lakhs in EPF.

These are safe, long-term investments.

Monthly Contributions
You invest:

Rs 1.5 lakhs yearly in PPF

Rs 1.5 lakhs yearly in SSY

Rs 3.4 lakhs yearly in EPF

Evaluating Future Investment Needs
Mutual Fund Selection
Your mutual fund selection is diversified.

You have exposure to large-cap, mid-cap, and small-cap segments.

Index Funds and ETFs
You have invested in an index fund and ETF fund of funds.

Index funds and ETFs follow the market. They do not aim to outperform it.

Actively managed funds aim to outperform the market.

They provide professional management and potentially higher returns.

Consider focusing more on actively managed funds.

Recommendations for Portfolio Optimization
Increase Allocation to Actively Managed Funds
Consider increasing your allocation to actively managed funds.

They offer potential for higher returns and professional management.

Regular Review and Rebalancing
Review and rebalance your portfolio regularly.

Ensure it aligns with your goals and risk tolerance.

Focus on High-Growth Funds
Given your high-risk appetite, focus on high-growth mutual funds.

Mid-cap and small-cap funds can offer significant growth.

Maintain Safe Investments
Continue your investments in PPF, SSY, and EPF.

These provide stability and guaranteed returns.

Evaluate ULIPs
If you have ULIPs, consider their charges and returns.

Surrendering ULIPs and reinvesting in mutual funds might be beneficial.

Professional Guidance
Seek advice from a Certified Financial Planner.

They can provide tailored advice and ensure your investments align with your goals.

Final Insights
You have a well-diversified portfolio.

Focus more on actively managed funds for potential higher returns.

Review and rebalance your portfolio regularly.

Continue with safe investments like PPF, SSY, and EPF.

Consider professional guidance for optimized investment strategies.

Stay focused on your goal of reaching Rs 10 crores.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 05, 2024

Money
Hi Dev.. I am 42 years old.. Have accumulated around 1.3 Crores as of today in MF(51.5 L), PPF/SSY (36 L) and EPF(46 L). Target is to reach around 10 crores in the next 13-15 years. I am a High Risk investor. I am investing in the below mutual funds for a minimum tenure of another 13 years.. UTI Nifty 50 Index (13k), Mirae Asset Large and Midcap (3k), UTI Nifty 200 Momentum 30 (18k), Quant Midcap (35k), Invesco India Midcap (35k) , Axis Small Cap (18k), Parag Parikh Flexicap (20k) and Quant Flexicap (20k) and Mirae Asset MidSmall400 Momentum Quality 100 ETF FoF (18k). Apart from this will continue investing in PPF (1.5 L yearly), Sukanya Samriddhi Yojana (1.5 L yearly) and EPF (3.4 L yearly). Am I aligned to reach the goal with the funds selected or any changes needs to be done. Pls. suggest.
Ans: You're doing a great job with your investments. At 42 years old, you've accumulated around Rs 1.3 crores in various investment avenues. That's commendable. You're on the right track towards your goal of Rs 10 crores in the next 13-15 years. Let’s analyze and evaluate your current investment strategy, its alignment with your goals, and potential areas of improvement.

Mutual Fund Investments: A Deep Dive
Overview and Assessment
You've diversified your mutual fund investments across various categories, which is a good strategy. Here's a closer look:

UTI Nifty 50 Index and UTI Nifty 200 Momentum 30: These funds focus on large-cap stocks and momentum strategies. While they offer stability, they might not match your high-risk appetite. Actively managed funds could provide better returns.

Mirae Asset Large and Midcap: This fund offers a balance between large and mid-cap stocks, providing a mix of stability and growth potential.

Quant Midcap and Invesco India Midcap: Midcap funds offer higher growth potential but come with increased volatility.

Axis Small Cap: Small-cap funds can offer high returns but are riskier. Given your high-risk tolerance, this fits well in your portfolio.

Parag Parikh Flexicap and Quant Flexicap: Flexicap funds provide the flexibility to invest across market capitalizations, which can be beneficial in changing market conditions.

Mirae Asset MidSmall400 Momentum Quality 100 ETF FoF: This fund focuses on momentum and quality factors, aligning with your aggressive investment style.

Analysis and Recommendations
Actively Managed Funds Over Index Funds

Your portfolio includes index funds like UTI Nifty 50 Index. Index funds track market indices, offering average market returns. Actively managed funds can potentially outperform index funds due to skilled fund management, especially in a high-risk strategy. Consider reallocating some investments from index funds to actively managed large-cap funds.

Risk and Reward Balance

You're heavily invested in midcap and small-cap funds, which aligns with your high-risk tolerance. However, ensure you're comfortable with the potential volatility. Maintaining a balance with some stable large-cap or balanced advantage funds could cushion against market downturns.

Regular Monitoring and Adjustments

It's essential to regularly review and adjust your portfolio based on market conditions and fund performance. Consider consulting a Certified Financial Planner (CFP) for personalized advice.

Power of Compounding and Long-Term Growth
Compounding: Your Best Ally
The power of compounding is your best ally in achieving your Rs 10 crore goal. Reinvesting earnings generates earnings on earnings, exponentially increasing your wealth over time. With a 13-15 year horizon, your investments have ample time to grow significantly through compounding.

Systematic Investment Plans (SIPs)
Your SIPs in mutual funds are a disciplined approach to investing, mitigating market volatility and averaging cost. Continue this strategy, as it leverages the power of compounding effectively.

Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY)
Stability and Tax Benefits
Your annual investments in PPF (Rs 1.5 lakh) and SSY (Rs 1.5 lakh) offer stability and tax benefits under Section 80C. These instruments provide guaranteed returns and are risk-free, balancing your high-risk mutual fund investments.

Employee Provident Fund (EPF)
Secure and Reliable
Your EPF contributions (Rs 3.4 lakh yearly) offer a secure, long-term saving avenue with tax benefits. The EPF is a cornerstone for retirement planning, providing a steady growth rate.

Evaluating Your Current Strategy
Alignment with Goals
Your current strategy is robust, focusing on a mix of high-risk, high-reward mutual funds and stable, tax-efficient instruments like PPF, SSY, and EPF. This diversified approach aligns well with your Rs 10 crore goal.

Potential Adjustments
Increase Allocation to Actively Managed Funds: Shift some investments from index funds to actively managed funds to potentially enhance returns.
Diversify Within High-Risk Funds: Ensure your high-risk mutual fund portfolio is diversified across various sectors to mitigate specific sector risks.
Regular Reviews: Conduct regular portfolio reviews and rebalancing to stay aligned with market conditions and personal goals.
Final Insights
Your proactive approach to financial planning is commendable. You've created a diversified portfolio with a mix of high-risk mutual funds and stable, tax-efficient investments. This strategy is well-aligned with your goal of accumulating Rs 10 crores in the next 13-15 years.

Consider the following:

Reallocate some investments from index funds to actively managed funds for potentially higher returns.
Maintain a balance between high-risk and stable investments to cushion against market volatility.
Regularly review and adjust your portfolio to stay on track with your goals.
Stay disciplined with your SIPs and leverage the power of compounding. Your commitment to a long-term investment horizon will pay off.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |10240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2025

Asked by Anonymous - Aug 13, 2025Hindi
Money
Hi. I have a monthly income of 1.5lakh. I have SIPs of around 35k monthly. The SIPs are of Nifty smallcap, nifty50index, midcap,parag parikh flexi, kotak midcap. I want to build a diversified portfolio and have an asset of 1cr in 10 years. I have a home loan emi going on which is monthly 20k now. It will increase in the coming months. Please suggest.
Ans: You are already showing strong discipline with Rs. 35,000 monthly SIPs. Starting early and staying consistent is the key to building your Rs. 1 crore goal in 10 years. Your current income and surplus allow you to plan in a structured way without putting pressure on your lifestyle.

» assessment of present portfolio
– Current SIPs are in smallcap, midcap, flexicap, and index funds.
– Smallcap and midcap funds give high growth potential but carry high volatility.
– Flexicap offers balance by letting the fund manager switch between market caps.
– Nifty 50 index gives broad market exposure but no active management flexibility.
– Index funds simply copy the market and cannot avoid downside in bad phases.
– Actively managed funds can shift allocation to protect returns during corrections.

» building a more diversified allocation
– Avoid over-concentration in smallcap and midcap segments.
– Keep largecap actively managed funds as a stability anchor.
– Maintain some exposure to debt mutual funds for safety and liquidity.
– Include an international equity fund for global diversification.
– This reduces risk from Indian market downturns and currency fluctuations.

» recommended asset split for 10-year goal
– Equity funds: 70% of monthly investment.
– Debt funds: 20% of monthly investment.
– Gold or other hedge assets: 10% of monthly investment.
– This balance offers growth, safety, and inflation protection.

» adjusting current SIP mix
– Reduce direct index fund allocation and replace with actively managed largecap or multicap funds.
– Continue with one midcap fund but avoid holding too many in the same category.
– Retain flexicap fund for dynamic market allocation.
– Keep smallcap exposure limited to 10–15% of total portfolio for high growth potential without excessive volatility.

» role of debt allocation in your case
– Debt mutual funds give stability during market falls.
– They also provide liquidity for planned expenses or emergencies.
– Over 10 years, the debt portion will be shifted towards equity in the early years, then increased again in the last 3 years for safety before withdrawal.

» impact of home loan EMI increase
– Your EMI will rise, reducing investible surplus temporarily.
– Plan in advance so you do not stop SIPs when EMI increases.
– Keep an emergency buffer equal to at least 6 months of EMI + expenses.
– This prevents you from redeeming growth investments for loan needs.

» estimating potential growth towards Rs. 1 crore
– If you invest consistently and follow a balanced allocation,
– Equity growth over 10 years can multiply invested amounts significantly.
– The debt portion will add stability and protect from market timing risks.
– Even with moderate growth assumptions, Rs. 1 crore in 10 years is realistic.

» tax planning for your investments
– Equity mutual funds: LTCG above Rs. 1.25 lakh in a year taxed at 12.5%.
– STCG on equity: 20% tax rate.
– Debt mutual funds: taxed as per your income slab for both short and long term.
– Plan redemptions around your goal year to minimise tax liability.

» review and rebalancing
– Review portfolio performance annually.
– If one category grows beyond target allocation, rebalance to maintain risk level.
– Rebalancing avoids over-exposure to any single segment.
– In last 2–3 years before goal, gradually shift gains to debt for safety.

» safeguarding financial plan
– Ensure you have adequate health and life insurance.
– This keeps your investment plan safe even if an emergency occurs.
– Avoid stopping SIPs unless there is a severe cash flow issue.
– Continue business or salary income growth to keep surplus healthy.

» finally
You already have the right habit of disciplined SIPs. By reducing over-concentration in high-risk segments, shifting some index fund allocation to actively managed funds, and adding a planned debt portion, you can control risk while targeting Rs. 1 crore in 10 years. Staying consistent, rebalancing regularly, and protecting your plan with insurance will ensure you reach your goal confidently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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.

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