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Ramalingam

Ramalingam Kalirajan  |10219 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Ashokan Question by Ashokan on Aug 22, 2023Hindi
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I had invested in Nippon Small Cap fund a sum of Rs.75,000 as lumpsum ( in 5 different occasions) during the last one year. It has grown up to Rs 93,000 now. I want this to grow at least for 4 more years. As Nippon is not allowing now to invest in lumpsum, can I leave the amount as such and redeem later ? Or can I invest it in something else? This is needed only after 4 years. Thanks on advance for your valuable reply.

Ans: Leaving your investment in Nippon Small Cap Fund as it is and allowing it to grow for the next 4 years can be a viable option if you believe in the fund's long-term potential. However, it's crucial to regularly monitor the fund's performance and the overall market conditions during this period.

Alternatively, if you're looking for diversification or have concerns about the future performance of the fund, you could consider reallocating a portion of your investment to other mutual funds that align with your risk tolerance and investment goals.

Before making any decisions, it's advisable to consult with a financial advisor who can provide personalized guidance based on your specific financial situation and objectives. They can help you assess the options available and make informed decisions that suit your needs.
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  |10219 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Money
I have invested lumpsum during corrections in the following funds , please advise should I continue investing more in the same funds - HDFC BALANCED ADVANTAGE, ICICI EQUITY AND DEBT, ICICI INDIA OPPORTUNITIES, ICICI MNC , ICICI VALUE DISCOVERY, ICICI MULTI ASSET, NIPPON SMALLCAP, SBI CONTRA , ADITY BIRLA MULTI ASSET ALLOCATION , HDFC FLEXICAP. I have invested 100000 in each fund . I am 62 years old. Kindly advise. Thanks and regards
Ans: Investing in the Right Mix for Your Retirement

Your current investment strategy reflects a thoughtful approach. Diversifying across multiple funds and investing during market corrections is wise. As you are 62 years old, balancing growth with capital preservation is crucial. Let's assess your current investments and explore whether you should continue adding to them.

Assessing Your Current Investments

Your portfolio includes balanced, equity, multi-asset, small-cap, and contra funds. This diversity helps in spreading risk. Each type of fund serves different purposes and offers unique benefits.

Balanced Advantage and Equity-Debt Funds

Balanced advantage and equity-debt funds invest in both equity and debt instruments. They provide growth potential with reduced volatility. These funds are suitable for investors seeking stability along with capital appreciation. Given your age, having such funds in your portfolio is beneficial. They help in managing risk while still aiming for reasonable returns.

Opportunities and MNC Funds

Opportunities and MNC funds focus on specific themes or sectors. They can deliver high returns if the chosen theme performs well. However, they come with higher risk due to concentration. These funds are suitable for investors with a higher risk appetite. At 62, you might want to limit exposure to such funds to avoid excessive risk.

Value Discovery and Contra Funds

Value discovery and contra funds invest in undervalued stocks. They aim to generate high returns by identifying mispriced opportunities. These funds require patience as value investing can take time to yield results. Including these funds in your portfolio adds a contrarian element, which can enhance returns if the market favours these stocks.

Multi-Asset and Flexicap Funds

Multi-asset and flexicap funds offer diversification within a single fund. They invest across various asset classes and market capitalizations. These funds provide flexibility and adaptability to market conditions. They can balance risk and reward effectively. Such funds are particularly beneficial for investors seeking a balanced approach to growth and risk management.

Small-Cap Funds

Small-cap funds invest in smaller companies with high growth potential. These funds can deliver substantial returns but come with higher volatility. They require a longer investment horizon to mitigate risks. At your age, it is important to carefully consider the proportion of small-cap funds in your portfolio to avoid excessive risk.

Evaluating the Need for Continued Investment

Considering your age, risk tolerance, and investment goals, here are some factors to evaluate whether to continue investing in the same funds:

Risk Tolerance and Time Horizon

Your risk tolerance decreases as you approach retirement. It is crucial to protect your capital while aiming for growth. Balanced advantage, equity-debt, and multi-asset funds provide a safer approach. Limiting exposure to high-risk funds like small-cap and sectoral funds can reduce volatility in your portfolio.

Diversification and Rebalancing

Your portfolio is already well-diversified. However, periodic rebalancing is essential to maintain the desired risk-reward ratio. Rebalancing involves adjusting your investments based on market performance. It ensures that your portfolio remains aligned with your financial goals and risk tolerance.

Income Generation Needs

At 62, generating a steady income might be a priority. Balanced advantage, equity-debt, and multi-asset funds can provide regular income through dividends and interest. Consider focusing more on these funds to ensure a steady income stream during retirement.

Consulting a Certified Financial Planner

A Certified Financial Planner (CFP) can provide personalized advice based on your unique situation. They can help you evaluate your current investments and suggest adjustments. CFPs assist in creating a tailored investment strategy that aligns with your retirement goals and risk tolerance.

Considering Other Investment Options

While your current portfolio is diversified, consider adding funds that offer capital preservation and income generation. Here are some options:

Debt Funds

Debt funds invest in fixed-income securities like bonds and debentures. They provide stable returns with lower risk compared to equity funds. Including debt funds can enhance capital preservation and provide regular income. They are suitable for conservative investors nearing retirement.

Hybrid Funds

Hybrid funds invest in both equity and debt instruments. They offer a balanced approach to growth and income. These funds are less volatile and can provide steady returns. Adding hybrid funds can enhance stability in your portfolio.

Systematic Withdrawal Plan (SWP)

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount regularly from your investments. It provides a steady income stream during retirement. Consider setting up an SWP from your balanced advantage or multi-asset funds to meet your income needs.

Conclusion

Your current investments reflect a thoughtful and diversified strategy. To ensure continued growth and capital preservation, focus on balanced advantage, equity-debt, and multi-asset funds. Limit exposure to high-risk funds and consider adding debt and hybrid funds for stability. Regularly review and rebalance your portfolio to maintain alignment with your goals. Consulting a Certified Financial Planner can provide personalized guidance and help you achieve a secure and comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 20, 2023

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I am having UTIRegular Saving Fund Direct Growth just above 5 lakhs. Yielding around 10.5%. Now I want to invest some more lumpsum money. Is it advisable to continue adding considering future of the find?
Ans: Hello Kameswara,

As your financial advisor, I appreciate that you're looking to invest more money and grow your wealth. UTI Regular Savings Fund Direct Growth has provided you with decent returns so far. However, before making any decision to invest further in this fund, it's crucial to consider a few factors.

Diversification: While the UTI Regular Savings Fund has been performing well, it's always a good idea to diversify your investments across different fund categories and asset classes. This will help spread the risk and potentially enhance returns in the long term.
Fund's past performance and future prospects: Although the fund has given a yield of around 10.5%, it's essential to evaluate the fund's past performance and compare it with its benchmark and peers. Also, consider the fund's investment strategy and portfolio holdings to understand its future potential.
Investment horizon and risk tolerance: Ensure that your investment horizon aligns with the fund's investment objectives. If you're looking for long-term capital appreciation, you may explore other options like equity funds or balanced funds. Additionally, assess your risk tolerance and choose funds accordingly.
To summarize, while it's tempting to continue investing in a fund that has provided good returns, it's crucial to evaluate your investment goals, risk tolerance, and diversification needs. I would recommend discussing your investment plan with a financial advisor who can provide personalized guidance based on your unique financial situation and goals.

Always happy to help.

..Read more

Ramalingam

Ramalingam Kalirajan  |10219 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 27, 2024

Asked by Anonymous - May 25, 2024Hindi
Money
Hi Sir , I have deposited 20 lakhs in Fixed deposit. How can i invest in mutual fund lumpsum amount for better returns?
Ans: Effective Strategies for Investing a Lump Sum in Mutual Funds
Investing a lump sum like Rs. 20 lakhs into mutual funds can provide better returns compared to fixed deposits. However, managing risk and ensuring steady growth requires a strategic approach. One effective method is using a Systematic Transfer Plan (STP).

Understanding Systematic Transfer Plan (STP)
What is an STP?
Gradual Investment

An STP allows you to transfer a fixed amount from a debt fund to an equity fund periodically. This method reduces market timing risks and averages out the cost of investment.

Benefits of STP
Risk Management

STPs help manage market volatility by spreading investments over time, reducing the impact of market fluctuations.

Regular Investments

They ensure disciplined investing, taking advantage of market corrections and benefiting from rupee cost averaging.

Step-by-Step Guide to Using STP
Step 1: Choose a Debt Fund
Safe Parking

Start by investing your lump sum in a debt fund. Debt funds are less volatile and provide regular income, making them a safe place to park your money initially.

Step 2: Select an Equity Fund
Growth Potential

Choose an equity fund based on your risk tolerance and financial goals. Equity funds offer higher returns over the long term but come with higher risk.

Step 3: Determine the Transfer Amount
Consistency

Decide the amount to transfer from the debt fund to the equity fund periodically. Common intervals are monthly or quarterly, depending on your preference.

Step 4: Set Up the STP
Automated Transfers

Set up the STP with your mutual fund provider. Specify the transfer amount and interval, ensuring the process is automated and hassle-free.

Benefits of Using Debt Funds Initially
Capital Preservation
Minimize Risk

Starting with a debt fund helps preserve your capital while earning a steady return. It provides a cushion against market volatility during the initial phase of your investment.

Regular Income
Steady Returns

Debt funds offer regular income through interest payments, which can be reinvested or used for other financial needs.

Choosing the Right Equity Funds
Diversification
Spread Risk

Select equity funds that offer diversification across sectors and market capitalizations. This strategy spreads risk and enhances growth potential.

Fund Performance
Track Record

Evaluate the historical performance of the equity funds. Consistent returns over different market cycles indicate reliable funds.

Fund Manager Expertise
Professional Management

Consider funds managed by experienced professionals. Their expertise can significantly impact the fund's performance and your investment returns.

Advantages of Actively Managed Funds
Professional Management
Expert Decisions

Actively managed funds benefit from professional fund managers who make informed decisions based on market research and conditions.

Potential for Higher Returns
Market Opportunities

Fund managers aim to outperform benchmarks, providing higher returns than passively managed funds like index funds.

Disadvantages of Index Funds
Limited Growth
Market Replication

Index funds replicate market indices, limiting growth potential compared to actively managed funds, which can capitalize on market opportunities.

Lack of Flexibility
Fixed Portfolio

Index funds have a fixed portfolio and cannot adapt to changing market conditions, unlike actively managed funds.

Disadvantages of Direct Funds
Lack of Guidance
Navigating Complexity

Direct funds do not offer the expertise of a certified financial planner, making it challenging for less experienced investors to manage their investments effectively.

Time and Effort
Active Management Required

Direct funds require significant time and effort to manage, unlike regular funds managed by professionals.

Benefits of Regular Funds via MFD with CFP Credential
Expert Advice
Personalized Guidance

Investing through a CFP ensures personalized advice tailored to your financial goals, risk profile, and investment horizon.

Better Performance
Professional Oversight

Professionally managed regular funds often perform better due to the expertise of fund managers, providing higher returns and better risk management.

Holistic Planning
Comprehensive Approach

A CFP considers all aspects of your financial situation, helping you achieve your goals efficiently and effectively.

Building a Diversified Portfolio
Mix of Funds
Balance and Growth

A balanced portfolio includes a mix of equity, debt, and hybrid funds. This approach manages risk while optimizing returns.

Regular Review
Performance Monitoring

Regularly review your portfolio to ensure it aligns with your goals. Make necessary adjustments based on performance and changing market conditions.

Systematic Investment Plan (SIP)
Disciplined Investing
Consistency

SIPs promote disciplined investing by allowing you to invest a fixed amount regularly, leveraging the power of compounding over time.

Flexibility
Adjustable Investments

SIPs are flexible, enabling you to increase or decrease your investment amounts based on your financial situation and goals.

Suggested Mutual Funds for Diversified Investment
Here are some categories of mutual funds to consider for a diversified investment portfolio:

Large-Cap Fund: Stability and steady growth from well-established companies.

Mid-Cap Fund: Potential for higher returns with moderate risk.

Small-Cap Fund: High growth potential with higher risk.

Aggressive Hybrid Fund: Balanced growth with a focus on equities.

Conservative Hybrid Fund: Stability with a focus on debt instruments.

Short-Term Debt Fund: Lower risk for short-term investments.

Long-Term Debt Fund: Better returns for long-term investments.

Multi-Cap Fund: Diversified across large, mid, and small-cap stocks.

Sectoral/Thematic Fund: Focus on specific sectors for higher returns.

International Fund: Exposure to global markets for additional diversification.

Conclusion
Investing Rs. 20 lakhs in mutual funds through an STP can provide better returns while managing risk. Start by parking your funds in a debt fund and gradually transferring to equity funds. This approach ensures disciplined investing and takes advantage of market opportunities.

Consult with a certified financial planner to receive personalized advice and build a diversified portfolio tailored to your financial goals. Regularly review your investments to stay on track and achieve optimal returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P P  |10168 Answers  |Ask -

Career Counsellor - Answered on Aug 11, 2025

Asked by Anonymous - Aug 11, 2025Hindi
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My son has got B.Tech core CSE in both VIT vellore (category 5) and PES university, Electronic City campus. We are based in Bangalore. Please suggest which is a better option?
Ans: VIT Vellore offers a well-established Computer Science and Engineering program with a broad campus, strong infrastructure, and consistent placement rates around 60-65%. The average package is approximately ?9.9 LPA, with top recruiters like Microsoft, Amazon, and Apple, reflecting its robust industry connections and global brand recognition. PES University, located in Bangalore’s Electronic City, benefits from proximity to major IT hubs and offers a competitive Computer Science program with a median placement package around ?8 to ?9 LPA and placement rates near 70-80%. PES has a modern campus, reputed faculty, and strong industry collaborations, especially valuable for local internships and networking opportunities.

Recommendation: Prioritize PES University for its Bangalore location, closer industry links, and higher placement rate, which favor practical exposure and career networking. Choose VIT Vellore for its brand prestige, larger campus, and internationally recognized curriculum. Your decision should balance local engagement advantages at PES with the extensive reputation and infrastructure strengths of VIT. This alignment will optimize your son's academic and career trajectory based on his personal preferences and future goals. My suggestion: Based on location & fees, prefer PES-EC-CSE. However, he should consistently maintain a strong CGPA and continuously enhance his skills through his fourth year to remain competitive with CSE peers both at the Electronic City campus and the RR (Banashankari) campus of PES for Campus Placement. All the BEST for a Prosperous Future!

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Sir I'm confused between Pillai New Panvel and Sies for electronics and computer science course that which is better actually I am interested in cs it but I don't have great percentage i have scored 87 in diploma so for dse which college should I prefer according to placement?
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Should I consider AMITY University noida for btech CSE ? How are placements there ?
Ans: Amity University Noida offers a well-structured B.Tech in Computer Science and Engineering (CSE) program accredited with an 'A+' grade by NAAC and recognized by UGC, AICTE, and international bodies. The campus boasts world-class infrastructure including high-tech labs, air-conditioned classrooms, extensive libraries, on-campus hostels, sports complexes, and medical facilities. Faculty members are qualified with many holding advanced degrees and some international exposure. Placements for CSE students show decent success with approximately 70-75% of students placed recently, attracting top recruiters like Microsoft, IBM, Accenture, and Amazon. The highest packages can reach up to 36 LPA, with average package ranges around 6-7 LPA. The university has strong industry tie-ups and hosts numerous internship opportunities, supported by corporate resource centers and innovation incubators fostering entrepreneurship. Its global collaborations enhance student exposure, providing a good blend of academics, practical learning, and career support for a comprehensive engineering education.

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Kiit cse or muj cse
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Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

All the BEST for a Prosperous Future!

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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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