I had started a SIP stock for 2k pm for Inox wind energy and Adani Green, 5 months ago...should i continue the SIP stock?

Ans: I recommend continuing with the "Mirae Asset Emerging Bluechip Fund" & "Parag Parikh Flexicap Fund" as these funds have good track record of performance and has generated returns that are above the benchmark index over a long period of time.

However, I recommend you to discontinue your investments in the following funds:

1. Axis Long Term Equity Fund- This fund has shown inconsistency in returns over a period of time and shows inconsistency in returns and its performance in comparison to its peers.

2. Nippon India Pharma Fund and Tata Digital India Fund- These are sectoral funds, which means that they invest in companies belonging to a single sector, pharma and technology respectively. Sectoral funds are exposed to higher risk than diversified funds, as their performance depends on the performance of a single sector. Additionally, sectoral funds are unlikely to generate returns that are significantly higher than the benchmark index, as they are passively managed and track a sector index.

Ans: for next 10yrs its good

Ans: Hello Vaibhav,

Firstly, it's essential to assess your investment goals, risk tolerance, and the suitability of the investment in your portfolio. The Motilal Oswal Nasdaq 100 Fund offers exposure to some of the largest and most innovative companies listed on the Nasdaq Stock Market, providing an opportunity for diversification and potential growth.

Considering you've been investing in the fund for the past six months, it's a good start to evaluate its performance against your expectations and the broader market trends. While short-term fluctuations are common in the stock market, analyzing the fund's performance relative to its benchmark index and peers can offer valuable insights.

Additionally, review the fund's investment strategy, portfolio composition, and expense ratio to ensure they align with your investment objectives and risk profile. Regular monitoring of your investments is crucial to adapt to changing market conditions and make necessary adjustments to your portfolio.

Ultimately, the decision to continue with your SIP in the Motilal Oswal Nasdaq 100 Fund should be based on your long-term financial goals, investment horizon, and comfort level with market volatility. If the fund continues to meet your expectations and remains in line with your investment strategy, it may be prudent to stay invested.

However, if you have concerns about the fund's performance, changes in your financial situation, or shifts in your investment objectives, it's advisable to reassess your investment strategy and consult with a qualified financial advisor to explore alternative options.

Remember, investing is a journey that requires careful planning, patience, and periodic review. I encourage you to stay informed, stay focused on your goals, and make decisions that align with your financial aspirations.

Ans: what is your vision behind investing and how long are you going to invest?

Ans: You have started stock SIPs in ABB and Siemens, investing Rs 2,000 per month. This began last year.

Risk Assessment

Investing in individual stocks can be risky. Stock performance can be volatile, and it requires constant monitoring.

Disadvantages of Direct Stock SIPs

Direct stock SIPs need detailed knowledge and tracking. Without professional guidance, it can be challenging to manage risk and returns effectively.

Benefits of Mutual Fund SIPs

Mutual fund SIPs offer diversification. They spread risk across multiple stocks and sectors. Professional management ensures better monitoring and adjustments.

Recommendations

Consider Mutual Fund SIPs: Shift your investment to mutual fund SIPs. This provides professional management and reduces individual stock risk.

Professional Management: A Certified Financial Planner (CFP) can help choose the right funds. This aligns with your financial goals and risk appetite.

Final Insights

Direct stock SIPs can be risky and require active management. Switching to mutual fund SIPs offers diversification and professional management. Consult a Certified Financial Planner to optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in