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Ramalingam

Ramalingam Kalirajan  |6240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 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
Meenakshi Question by Meenakshi on Jul 13, 2024Hindi
Money

Hello sir ,I am 37 years old female I am investing in mutual fund since 2023 Total value approx.2 lakh SBI contra-5000 Edelweiss balanced advantage fund -2000 Mirae asset ELSS tax saver-2000 Parag pareikh flexi cap direct growth-3000 Quant small cap -5500 Bhandhan ELSS tax saver-2500 Some investment in PPF- 8lkh Ssy-6 lkh Please advice is this a right way to achieve goal of corpus 2 crore in 10-20 years or need more investment or any changes in investment Please advice

Ans: You are off to a good start by investing in mutual funds and other secure instruments like PPF and SSY. Your goal is to achieve a corpus of Rs. 2 crores within 10-20 years. This is an achievable target with the right strategy, discipline, and possibly some adjustments to your current investment plan.

Evaluating Your Existing Mutual Fund Portfolio
SBI Contra Fund
A contra fund invests in undervalued stocks, following a contrarian approach. These funds can deliver high returns over the long term but can be volatile. Given your long-term horizon, it’s a good addition to your portfolio, especially if you have a high-risk appetite.

Edelweiss Balanced Advantage Fund
Balanced advantage funds dynamically allocate between equity and debt based on market conditions. This fund offers stability and is suitable for conservative investors. It’s a good choice for reducing the overall risk in your portfolio.

Mirae Asset ELSS Tax Saver
ELSS funds provide tax benefits under Section 80C and have a three-year lock-in period. These funds are equity-oriented, offering growth potential. Investing in ELSS is a smart way to save taxes while building wealth.

Parag Parikh Flexi Cap Fund
Flexi-cap funds invest across large, mid, and small-cap stocks. This fund is versatile, providing diversification across different market capitalizations. It’s a strong growth-oriented fund that can help you achieve your long-term goals.

Quant Small Cap Fund
Small-cap funds invest in smaller companies with high growth potential. While these funds can be volatile, they offer significant returns over time. However, it’s crucial to monitor them closely, especially if market conditions change.

Bandhan ELSS Tax Saver Fund
Like the Mirae Asset ELSS fund, this fund also provides tax benefits while offering growth through equity investments. Having two ELSS funds can be redundant unless you are utilizing them fully for tax savings under Section 80C.

Review of Your Non-Mutual Fund Investments
Public Provident Fund (PPF)
Your investment in PPF is sound. It provides safety, guaranteed returns, and tax benefits. However, the returns are fixed and may not keep pace with inflation over the long term. It’s good for preserving capital but not for aggressive growth.

Sukanya Samriddhi Yojana (SSY)
SSY is a government-backed savings scheme for the girl child, offering a high-interest rate with tax benefits. It’s an excellent investment for long-term security and is well-suited for goals related to your daughter’s future.

Assessing Your Investment Strategy
Current Investment Amounts
You are currently investing around Rs. 19,000 per month in mutual funds. To achieve a corpus of Rs. 2 crores in 10-20 years, it’s essential to evaluate whether this amount, along with your existing investments, will be sufficient.

Required Corpus Calculation
Without going into specific calculations, a rough estimate suggests that you may need to invest more than your current amount, especially if your goal is closer to 10 years. If your horizon is 20 years, your current investments, coupled with regular increases, might be sufficient.

Need for Additional Investment
If you can increase your monthly SIP amount, it would significantly enhance your chances of reaching your Rs. 2 crore target within 10 years. Given your current investments and the potential growth of your funds, consider gradually increasing your SIPs by 10-15% annually.

Suggested Adjustments and Diversification
Portfolio Diversification
Your portfolio is diversified across different types of funds, which is good. However, the allocation could be fine-tuned for better balance:

Increase Allocation to Large-Cap Funds: Large-cap funds provide stability and consistent returns. Consider adding a large-cap fund to your portfolio or increasing allocation if you already have one.

Reduce Redundancy in ELSS Funds: Since you have two ELSS funds, you might want to consolidate into one, unless both are serving a specific tax-saving purpose.

Monitor Small-Cap Exposure: While small-cap funds offer high growth, they also come with higher risk. Ensure you are comfortable with the volatility and consider balancing this with more stable investments.

Consider Adding a Multi-Cap Fund: Multi-cap funds offer diversification across large, mid, and small-cap stocks. They balance risk and return effectively, making them a good option for long-term growth.

Regular Review and Rebalancing
Review your portfolio at least once a year to ensure it remains aligned with your goals. Rebalance if necessary, to maintain the desired asset allocation.

The Disadvantages of Direct Funds
You are currently investing in direct funds, which have a lower expense ratio. However, direct funds require active monitoring and decision-making. If you prefer a more hands-off approach, investing through a Certified Financial Planner (CFP) with a Mutual Fund Distributor (MFD) credential can offer professional guidance, regular reviews, and portfolio adjustments. This ensures that your investments remain on track with your financial goals.

Final Insights
You are on the right path with your current investments. Your diversified portfolio of mutual funds, combined with safe investments like PPF and SSY, offers a good mix of growth and stability. However, to reach your Rs. 2 crore target in 10-20 years, consider increasing your monthly SIPs and possibly reallocating some investments for better balance.

Regularly reviewing your portfolio and making necessary adjustments will help you stay on track to achieve your financial goals. With disciplined investing and strategic planning, you can build a robust corpus for your future.

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.
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Ramalingam

Ramalingam Kalirajan  |6240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

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Sir, i am 62 yrs . i am investing 65,500/ per month in Regular Mutual Fund SIP since last two years : 1.ICICI Blue Chip Fund : 12000/-, 2. Canara Robeco Blue Chip Fund: 20000/-, 3. Mirae Asset Large Cap: 2000/-, 3. Quant Active Fund : 10000/-, 4, HDFC Flexi Cap: 5000/-, 5. PGIM Flexi Cap : 3000/- , 6. Canara Robeco Emerging Equities: 5000/-, 7. Mirae Asset Emerging Blue Chip: 2500/- 8. Axis Growth Opportunities: 3000/- and 9. Kotak Small Cap: 3000/-. I have also lump sum investment of Rs. 17,57,000/- since last 2 yrs. : Rs. 75,000 Canara Robeco Small Cap. Rs. 390000/- HDFC Balanced Advantage, Rs. 4,00,000/- ICICI Equity & Debt Fund, Rs.235000/- PGIM Balanced Advantage, Rs. 190000/- PGIM Midcap Opportunities Fund, Rs. 150000/- Parag Parikh Flexi Cap Fund, Rs. 125000/- Quant Active Fund, Rs. 1,62,000/- SBI Flexi Cap Fund and Rs. 30000/- UTI Flexi Cap Fund. Please let me whether : 1. With my above investment 2 Crore corpus can be achieved in next 5 yrs. 2. My investment in above funds are required to be continued or not. I am looking forward your valuable advice. With warm regards, Tapan
Ans: Your commitment to investing is commendable. With a strategic approach, we can assess your portfolio and determine the feasibility of achieving a Rs. 2 crore corpus in the next five years. Let’s delve into the analysis and provide recommendations.

Evaluating Your SIP Investments
Your current monthly SIP investment of Rs. 65,500 is diversified across various funds, which is a positive approach. Here’s a brief evaluation:

ICICI Blue Chip Fund (Rs. 12,000)
Blue-chip funds are stable and provide steady returns. They are less volatile and suitable for long-term investments.

Canara Robeco Blue Chip Fund (Rs. 20,000)
Another blue-chip fund, enhancing the stability of your portfolio. It’s good to have a significant allocation here.

Mirae Asset Large Cap (Rs. 2,000)
Large-cap funds are relatively safe and provide consistent returns.

Quant Active Fund (Rs. 10,000)
Actively managed funds can potentially outperform the market, but come with higher risk.

HDFC Flexi Cap (Rs. 5,000)
Flexi cap funds provide diversification across market caps, offering a balance of growth and stability.

PGIM Flexi Cap (Rs. 3,000)
Another flexi cap fund, adding to the diversified approach.

Canara Robeco Emerging Equities (Rs. 5,000)
Emerging equity funds target mid and small-cap stocks, providing higher growth potential but with increased risk.

Mirae Asset Emerging Blue Chip (Rs. 2,500)
This fund balances between large and mid-cap stocks, providing a mix of stability and growth.

Axis Growth Opportunities (Rs. 3,000)
Growth funds aim for higher returns through aggressive investment strategies, suitable for a balanced risk profile.

Kotak Small Cap (Rs. 3,000)
Small-cap funds can deliver high returns, but they also come with significant risk.

Evaluating Your Lump Sum Investments
Your lump sum investments also show a good mix of fund types. Here’s an assessment:

Canara Robeco Small Cap (Rs. 75,000)
Small-cap funds, while risky, can provide substantial returns over time.

HDFC Balanced Advantage (Rs. 3,90,000)
Balanced funds provide a mix of equity and debt, offering moderate risk with steady returns.

ICICI Equity & Debt Fund (Rs. 4,00,000)
This hybrid fund further balances your risk and return profile.

PGIM Balanced Advantage (Rs. 2,35,000)
Another balanced fund, enhancing stability in your portfolio.

PGIM Midcap Opportunities Fund (Rs. 1,90,000)
Mid-cap funds offer higher growth potential than large-cap but are riskier.

Parag Parikh Flexi Cap Fund (Rs. 1,50,000)
Flexi cap funds provide diversification and can adapt to market changes.

Quant Active Fund (Rs. 1,25,000)
Active funds aim for market outperformance but come with higher volatility.

SBI Flexi Cap Fund (Rs. 1,62,000)
Flexi cap funds add to the diversified nature of your portfolio.

UTI Flexi Cap Fund (Rs. 30,000)
Another flexi cap fund, maintaining diversification.

Assessing the Feasibility of a Rs. 2 Crore Corpus
Given your current investments, achieving a Rs. 2 crore corpus in five years is possible but challenging. It depends on market performance and consistent returns. Historically, equity mutual funds can offer 10-12% annual returns, but this is not guaranteed.

Recommendations for Continued Investment
Maintain Diversification
Your portfolio is well-diversified. Continue this strategy to manage risk effectively.

Increase Equity Exposure Cautiously
Consider slightly increasing your SIP amounts in high-growth funds like small-cap and mid-cap funds if you are comfortable with higher risk.

Review and Rebalance Annually
Regularly review your portfolio’s performance and rebalance annually to ensure it aligns with your goals.

Consider Systematic Withdrawal Plans (SWP)
As you approach your goal, consider shifting some investments to safer options and use SWPs to manage withdrawals systematically.

Stay Informed
Keep abreast of market trends and economic factors that might impact your investments.

Evaluating Specific Fund Choices
Blue Chip Funds
Blue-chip funds are a safe bet. Ensure that you have a substantial allocation here for stability.

Flexi Cap Funds
Flexi cap funds provide flexibility and diversification across market caps, which is beneficial.

Small and Mid-Cap Funds
These funds offer high growth potential but be mindful of their volatility. Balance their proportion to match your risk tolerance.

Balanced Advantage and Hybrid Funds
These funds are excellent for maintaining a balance between growth and safety. They should form a core part of your portfolio as you near your goal.

Aligning Investments with Financial Goals
Short-Term Goals
For any short-term financial needs, consider safer investment options like debt funds or fixed deposits.

Medium-Term Goals
Balanced funds or hybrid funds are suitable for medium-term goals, offering a balance of growth and stability.

Long-Term Goals
Continue with your equity investments for long-term goals. Equities typically provide higher returns over a long period.

Ensuring Tax Efficiency
Invest in funds that provide tax benefits under Section 80C to optimize your tax savings. Balanced funds and equity-linked savings schemes (ELSS) can be considered for this purpose.

Importance of Professional Guidance
Consulting a Certified Financial Planner can provide personalized advice. They can help you adjust your portfolio based on your financial situation and goals.

Conclusion
Your current investment strategy is robust and well-diversified. With careful planning and regular monitoring, achieving a Rs. 2 crore corpus in the next five years is within reach. Continue your disciplined investment approach and consider professional guidance for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on May 03, 2023

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Kapil Padha: Kindly give your expert opinion regarding my monthly mutual fund investments of Rs. 28000 (all SIPs) I have been doing for the last 4 years. I am 39 yr old. I want to create a corpus of around 2 Crore in the next 15 years. Your expert opinion will be appreciated. 1. HDFC Children's Gift Fund - (Lock-in) - Regular Plan - Rs. 10000. 2. ICICI Prudential Midcap Fund - Growth - Rs. 5000 3. ICICI Prudential Multicap Fund - Growth - Rs. 2000 4. Axis Bluechip Fund - Regular Growth - Rs. 4500 5. Axis Focussed 25 Fund - Regular Growth - Rs. 2000 6. SBI Focussed Equity Fund - Regular Growth - Rs. 4500 Are the funds mentioned above good? Or do I have to change to some other funds?
Ans: Dear Kapil,

I appreciate your proactive approach towards building wealth for the future. I must say that you have chosen a diversified set of mutual funds which is a good start towards achieving your financial goals.

To begin with, your investment of Rs. 28,000 per month towards mutual funds is a commendable step towards wealth creation. Assuming a yearly growth rate of 12%, you can potentially reach your target of 2 Crore in the next 15 years.

Coming to your mutual fund portfolio, the HDFC Children's Gift Fund has a lock-in period of five years, which is ideal if you are investing for your child's education or marriage. However, you may consider shifting your investments to the HDFC Hybrid Equity Fund or HDFC Equity Fund, which have delivered good returns historically and have a lower lock-in period.

The ICICI Prudential Midcap Fund and ICICI Prudential Multicap Fund are excellent choices for investing in mid-cap and multi-cap funds, respectively. The Axis Bluechip Fund is a good option for investing in blue-chip companies, while the Axis Focused 25 Fund and SBI Focused Equity Fund are suitable for investing in focused portfolios.

Overall, your mutual fund portfolio seems to be well diversified, and you may consider making minor tweaks to it based on your risk appetite and investment goals. As always, it's essential to consult with your financial advisor before making any investment decisions.

I hope this helps!

..Read more

Ramalingam

Ramalingam Kalirajan  |6240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 03, 2024Hindi
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Hi Sir.. I am 35year, my investments as of now - Mutual fund portfolio -11.4lakh PF - 11lakh PPF - 3.5lakh - 2.5k/month from last 9years Stocks - 3.5lakh I have been investing in 3mutual funds since last 9years & planned to continue next 10-15 years. 1. Nippon India multi cap growth - 1k 2. Nippon India vision growth - 1k 3. ICICI Prudential multi asset fund growth - started investing 1k pm with 500rs increament per year now investing 5k/month 4. HDFC defence fund direct growth - 2.5k from last 4months Total mutual fund portfolio value- 11.40lakh as of now. Planning to retire at 50, with corpus of 2.5cr. Kindly confirm 1. is any changes required in my current mutual fund portfolio. 2. Thinking to add 2new mutual fund to invest 5-6k per month for next 10-12years, please confirm best mutual funds. 3. Kindly suggest is any changes required to get 2.5cr corpus in next 15years.
Ans: Investment Analysis and Portfolio Review
Your current investment strategy shows consistency and foresight. Investing in mutual funds, provident funds, and stocks indicates a balanced approach. However, to ensure you achieve your goal of a Rs. 2.5 crore corpus by retirement at 50, let's dive deeper into your portfolio and suggest some refinements.

Current Mutual Fund Portfolio
Nippon India Multi Cap Growth Fund: This fund offers diversified exposure across market capitalizations. Multi-cap funds can weather market volatility by adjusting their investment across large, mid, and small-cap stocks.

Nippon India Vision Growth Fund: This is a sectoral/thematic fund. While it offers growth potential, it also carries higher risk due to sector concentration.

ICICI Prudential Multi Asset Fund Growth: Multi-asset funds diversify across equity, debt, and other asset classes. Increasing your SIP amount annually is a good strategy for growth.

HDFC Defence Fund Direct Growth: A new addition focused on the defence sector. While thematic funds can yield high returns, they are also subject to higher risks.

Assessment and Recommendations
Your current portfolio mix indicates a balanced but slightly aggressive investment approach. Considering your retirement goal, here are some recommendations:

1. Maintain Diversification:
Ensure your portfolio remains diversified across different sectors and market capitalizations. This reduces risk and enhances return potential.

2. Review Sectoral Exposure:
Sectoral and thematic funds can be volatile. Limit your exposure to these funds to a small percentage of your overall portfolio.

3. Increase SIP Amounts:
To achieve a Rs. 2.5 crore corpus in 15 years, consider increasing your SIP contributions gradually. Compounding benefits will enhance your returns over time.

Suggested New Mutual Funds
Adding two new mutual funds can help further diversify your portfolio. Here are some options to consider:

1. Diversified Equity Fund:
A diversified equity fund invests across various sectors and market caps. It offers balanced growth with moderate risk.

2. Hybrid Fund:
Hybrid funds invest in both equity and debt instruments. They provide stability with the potential for equity-like returns.

Action Plan for Rs. 2.5 Crore Corpus
To achieve your target corpus, consider the following steps:

1. Review and Adjust Annually:
Regularly review your portfolio's performance. Adjust your investments based on market conditions and your financial goals.

2. Increase Investments Gradually:
Consider increasing your SIP amounts annually. This leverages the power of compounding and helps in accumulating wealth faster.

3. Stay Disciplined:
Maintain a disciplined investment approach. Avoid withdrawing investments prematurely and stay focused on your long-term goal.

4. Consult a Certified Financial Planner:
A certified financial planner can provide personalized advice and strategies. They help optimize your portfolio based on your risk profile and financial goals.

Additional Recommendations
1. Emergency Fund:
Ensure you have an emergency fund covering at least 6-12 months of expenses. This prevents premature withdrawal of your investments during emergencies.

2. Insurance Coverage:
Adequate life and health insurance coverage protects your investments. It ensures financial stability for your family in case of unforeseen events.

3. Regular Monitoring:
Keep track of your investment portfolio. Regular monitoring helps in making informed decisions and adjusting strategies as needed.

Conclusion
Your current investment strategy is commendable, showcasing consistency and a balanced approach. With a few adjustments and additional investments, you can achieve your retirement goal of Rs. 2.5 crore.

Stay disciplined, increase your SIP amounts gradually, and maintain diversification. Consulting a certified financial planner will provide personalized guidance and optimize your portfolio further.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6240 Answers  |Ask -

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

Money
Sir, I am 30 years now. I have started my Mutual fund in July 2024 portfolio by investing in several mutual funds. I am investing for long term gain and to accumulate a corpus or min. 2 Cr in other 30 years. Please advice if i can continue my investing. Here are my investments - 1. Index Fund - UTI Nifty 50 Index Fund Growth - 3000 2. Large Cap Fund - ICICI Prudential Bluechip Fund Direct Growth - 2000 3. Midcap Fund - HDFC Mid-Cap Opportunities Fund - 1500 4. Small Cap Fund - Nippon India Small Cap Fund - 1500 5. Flexi Cap Fund - Parag Parikh Flexi Cap Fund Direct Growth - 2000 Please advise sir
Ans: At 30 years of age, your decision to start investing in mutual funds is commendable. Your goal of accumulating a corpus of Rs 2 crore over the next 30 years is achievable with disciplined investing.

However, it is important to regularly review and align your portfolio with your financial objectives. This ensures that your investments remain on track towards achieving your desired goals.

Evaluating Your Current Portfolio
Your portfolio consists of a mix of index funds, large-cap, mid-cap, small-cap, and flexi-cap funds. Let’s assess the pros and cons of each and see how they contribute to your long-term goal:

1. Index Fund (UTI Nifty 50 Index Fund Growth)

Disadvantages of Index Funds: While index funds offer low-cost exposure to the market, they may not outperform actively managed funds over the long term. Index funds simply mimic the market index and do not have the flexibility to adapt to changing market conditions. In times of market downturns, index funds can also suffer significant declines without the ability to cushion losses.

Benefits of Actively Managed Funds: Actively managed funds, on the other hand, offer the potential for higher returns as they are managed by experienced fund managers who can make strategic decisions based on market trends. These managers aim to outperform the benchmark index, giving you the potential for better returns in the long run.

2. Large Cap Fund (ICICI Prudential Bluechip Fund Direct Growth)

Large Cap Exposure: Large-cap funds are known for their stability and lower risk compared to mid and small-cap funds. They invest in well-established companies with a strong track record. However, the "Direct" plan of this fund means you are investing without the guidance of a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD).

Disadvantages of Direct Plans: Direct plans require investors to be more hands-on, with regular monitoring and decision-making. Many investors might miss out on timely advice, leading to missed opportunities or increased risks. Regular plans, through a CFP or MFD, ensure that you receive professional guidance, helping you make informed decisions aligned with your goals.

3. Midcap Fund (HDFC Mid-Cap Opportunities Fund)

Growth Potential: Midcap funds offer a balance between risk and reward. They invest in companies with the potential for high growth. However, they can be volatile, especially during market downturns. It's essential to have a longer investment horizon for mid-cap funds, as you do, to ride out the volatility and capture long-term growth.
4. Small Cap Fund (Nippon India Small Cap Fund)

High Risk, High Reward: Small-cap funds invest in emerging companies with high growth potential. However, they are also the most volatile and carry higher risk. These funds can experience significant fluctuations in short periods. While they can generate substantial returns, it's important to balance them with more stable investments.
5. Flexi Cap Fund (Parag Parikh Flexi Cap Fund Direct Growth)

Diversification and Flexibility: Flexi-cap funds invest across market capitalizations (large, mid, and small-cap stocks). This provides a diversified approach, reducing the risk associated with investing in a single market segment. However, as with the large-cap fund, the "Direct" nature of this investment means you are managing it without expert guidance.
Recommended Adjustments to Your Portfolio
Given your long-term horizon and financial goals, consider the following adjustments:

1. Switch from Index Funds to Actively Managed Funds

Replace the index fund with an actively managed large-cap or multi-cap fund. This could offer better returns over the long term, as fund managers can make informed decisions based on market conditions.
2. Move from Direct to Regular Plans

Consider switching your direct plans to regular plans. A CFP or MFD will provide professional advice and regular portfolio reviews. This will help you make the most of your investments and adjust your portfolio as needed.
3. Rebalance Your Portfolio

Ensure your portfolio is well-diversified across asset classes. You may consider adding a mix of debt funds to reduce risk. This will provide stability, especially during market downturns.

Periodically rebalance your portfolio to maintain the desired asset allocation and ensure you are on track to achieve your financial goals.

Importance of Regular Portfolio Review
Regularly reviewing your portfolio is crucial. The financial market is dynamic, and periodic reviews will help you make necessary adjustments. This ensures your portfolio remains aligned with your risk tolerance, investment horizon, and financial goals.

Tax Efficiency and Investment Tenure
Tax Implications: Keep in mind the tax implications of your investments. Long-term capital gains (LTCG) on equity funds are taxed at 10% on gains exceeding Rs 1 lakh per financial year.

Investment Tenure: Given your 30-year horizon, equity funds are suitable due to their potential for high returns over the long term. However, consider the tax benefits and implications when choosing funds and investment durations.

Role of a Certified Financial Planner (CFP)
Expert Guidance: A CFP can help you navigate the complexities of investing, offering personalized advice and ensuring your portfolio aligns with your goals. They will help you stay disciplined and avoid common pitfalls that can derail your financial journey.
Final Insights
Your current portfolio has a solid foundation, but with some adjustments, it can be optimized for better long-term performance. Replacing index funds with actively managed funds, switching to regular plans, and ensuring a balanced portfolio will help you achieve your goal of accumulating Rs 2 crore in 30 years.

Investing in a well-diversified portfolio, guided by a Certified Financial Planner, will ensure that you are on the right path to financial success. Remember to stay disciplined, review your portfolio regularly, and make adjustments as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Moneywize

Moneywize   |145 Answers  |Ask -

Financial Planner - Answered on Sep 08, 2024

Asked by Anonymous - Sep 05, 2024Hindi
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I am investing monthly around Rs 18,000 in MFs, as per the following: Canara Robeco Small capMF - Rs 4.5k, PGIM Mid Cap Opportunities - Rs 4.5k, Tata Digital - Rs 4.5k, Quant Active - Rs 4.5k. I am intending to increase monthly investment in MF from present Rs 18k to Rs 40k & needed a corpus of at least 1 cr in next 10 years. Can you check suggest if my portfolio needs any changes or the same appears to be in order?
Ans: To reach a corpus of Rs 1 crore in 10 years, you will need to invest in funds that generate around 10-12 per cent annual returns. Your current portfolio is diversified across small-cap, mid-cap, digital, and active funds, which can work well but also carries some volatility, especially in sectoral and small-cap/mid-cap funds.

Portfolio Review:

• Canara Robeco Small Cap Fund: Good for aggressive growth but highly volatile. Keep it if you're comfortable with higher risk.
• PGIM Mid Cap Opportunities Fund: Another growth-oriented fund with decent potential. It's good to have some exposure to mid-caps.
• Tata Digital Fund: Sectoral funds are risky because they are dependent on the sector's performance. Digital/technology funds can be volatile; consider reducing exposure here.
• Quant Active Fund: A multi-cap approach with flexibility across market caps. This fund provides balance and is good for diversification.

Suggestions:

• Increase Allocation to Large Cap/Index Funds: You may want to balance your portfolio with a large-cap or index fund like UTI Nifty 50 or Mirae Asset Large Cap Fund. Large-cap funds provide stability and reduce overall portfolio volatility.
• Reduce Sector-Specific Exposure: Consider trimming your allocation to Tata Digital Fund, as sectoral funds can face prolonged underperformance during sector downturns. You can reallocate this to a more diversified fund.
• Balanced Fund: Add a balanced or hybrid fund like HDFC Balanced Advantage Fund or ICICI Prudential Balanced Advantage Fund for better risk management while maintaining growth potential.
• Debt Component: To hedge against equity risk, consider adding a small portion to a short-term debt fund or gilt fund, which can provide stability during volatile periods.

Suggested Structure After Increase:

• Canara Robeco Small Cap Fund: Rs 6,000
• PGIM Mid Cap Opportunities Fund: Rs 6,000
• Quant Active Fund: Rs 6,000
• Mirae Asset Large Cap Fund: Rs 6,000
• HDFC Balanced Advantage Fund: Rs 6,000
• ICICI Prudential Multi Asset Fund: Rs 5,000
• UTI Nifty 50 Index Fund: Rs 5,000

This adjusted allocation will maintain growth potential while providing a cushion against volatility.

...Read more

Kanchan

Kanchan Rai  |331 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 08, 2024

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I'm seeking guidance on improving my communication with my daughters. I want to create a more positive and supportive environment at home, especially when discussing their mistakes or weaknesses. Could you please share some strategies on how I can provide positive feedback and encouragement, even when addressing their mistakes? I aim to help them feel comfortable discussing their challenges without fear and to focus on turning negative thoughts into positive ones. Your advice on how to approach this in a friendly and constructive manner would be greatly appreciated. Thank you for your support
Ans: It’s really commendable that you're seeking ways to improve communication with your daughters, especially when it comes to handling mistakes or weaknesses. The goal you're aiming for—creating a supportive environment where they feel safe to share their challenges—is a key part of nurturing a healthy and open relationship.

When addressing their mistakes, it’s important to remember that how they interpret your feedback can shape how they see themselves and their ability to handle difficulties. You want them to feel like they’re not being judged or criticized but instead being guided towards growth. One way to start is by focusing on empathy in your conversations. When they make a mistake, it’s natural to want to correct it quickly, but it can be more productive to begin by acknowledging how they might feel. This lets them know that you understand their experience, and that mistakes are part of life and learning. It shifts the focus from the mistake itself to their emotions, which builds trust.

Another aspect is how you frame the conversation. Instead of honing in on what went wrong, it’s helpful to highlight the effort they put in and the process they went through, even if the outcome wasn’t perfect. Letting them know that their effort is noticed and appreciated can boost their confidence. When they feel that their hard work is valued, they’re more likely to discuss their challenges openly, rather than feeling like they failed. If they feel supported during these moments, they will be more inclined to seek your guidance in the future without fearing a negative response.

Listening is another vital tool. When they make a mistake, resist the urge to immediately jump in with advice or corrections. Instead, ask them how they feel about what happened or what they think they could do differently next time. This not only gives them ownership of their problem-solving but also empowers them to reflect and learn from their experiences. Sometimes, when children are given the space to voice their thoughts, they can surprise you with their insights. And even if they don’t have an answer right away, they’ll appreciate being part of the conversation rather than being lectured.

It’s also important to be patient with progress. Instead of expecting a big shift in behavior or attitude overnight, focus on the small steps they take. Recognizing these smaller victories can go a long way in motivating them to keep improving, even when they stumble. They need to see that progress is more important than perfection, and your role is to guide them through the ups and downs without focusing too much on the final result.

Finally, your own approach to challenges and mistakes plays a big role in shaping how they will handle their own. When they see you approach difficulties with a positive mindset—whether it's a work challenge or a personal frustration—they’re learning that setbacks don’t define them. Modeling this kind of attitude will encourage them to talk about their own struggles more openly and with less fear of judgment.

In essence, the goal is to build trust and maintain a positive tone, even when discussing difficult topics. With this approach, your daughters will not only feel comfortable coming to you but will also develop a stronger sense of resilience in facing their own challenges. You’ll find that as they feel more supported, their confidence in addressing their weaknesses will naturally grow.

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Kanchan

Kanchan Rai  |331 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 08, 2024

Asked by Anonymous - Aug 30, 2024Hindi
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Hi Kanchan, this query is regarding dealing with our teenage daughter (13 yrs). It is almost difficult to get her to do anything at home. She does not clean her room, take care of her share of chores. She is not dumb, but below average student in class. She used to go to guitar class and once faced stiff competition in her school , she is not participating in music competitions after that . Both me and my wife had been industrious and competitive students. We are ok with her not picking up studies, but what i don't see, is a spark to excel at anything. Her friends have passed French level 1 exams and even though she is learning for last 4 yrs, she doesn't appear for them. Everyday is escalating into huge arguments between her and my wife , with few broken items at home. As I mentioned studies excellence is not a concern, but we are unable to motivate her to put up a fight for the things she wants in life. She would come home from school and watch YT, reels, etc for hrs at stretch. Since we both husband wife are working, it is very difficult to monitor her all the time. We fear that she is already influencing our 9 yr old son , who is a discplined kid otherwise. We feel helpless most of the time, as she is not amending her ways. Please suggest what to do?
Ans: One of the things that might be happening here is that your daughter is at an age where identity and confidence issues often come to the forefront. At 13, she’s navigating a lot—social pressures, changing emotions, and maybe even a fear of not being able to meet the expectations of her parents, peers, or even herself. The fact that she stopped participating in music competitions after facing stiff competition might indicate she’s dealing with fear of failure or rejection. It’s not that she doesn’t care, but more that she may be afraid of not being good enough, and in response, she avoids trying at all.

Instead of pushing her to excel, the first step might be to understand what’s going on emotionally. Teenagers are notorious for shutting down or rebelling when they feel pressure, even if it’s unintentional. Try creating an environment where she feels safe to open up without fear of judgment or comparison to others. Sit down with her and have an open, calm conversation where you genuinely listen to her side. She might not know how to express her frustrations or fears, but giving her the space to talk could help her feel supported instead of criticized.

I understand your concern about her spending hours on YouTube or watching reels. This can be both a form of escapism and a way for her to feel connected to her peers. Rather than banning or limiting screen time strictly, which could create more conflict, try to understand what she’s watching and why she’s so drawn to it. Maybe this can lead to finding a common ground or encouraging her to pursue interests related to what she enjoys online, without the pressure of competition.

It’s also possible she’s feeling the weight of expectations, even if you don’t consciously put them on her. Sometimes just knowing that her parents were high achievers can make her feel like she’s falling short. Helping her feel that it’s okay not to have everything figured out yet might ease some of the pressure.

You’re also right to be concerned about her influence on your younger son. His more disciplined nature may make him vulnerable to picking up some of her habits. But rather than positioning them as opposites, encourage them both to find balance—showing her that discipline and effort don’t have to come with the weight of pressure might help her change her behavior, too.

The arguments with your wife and the escalation at home are clearly a sign that things are reaching a boiling point, but remember that this doesn’t mean she’s unreachable. This is a tough stage, but with patience, empathy, and a bit of flexibility in your approach, it’s possible to guide her without feeling like you’re losing control of the situation.

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Kanchan

Kanchan Rai  |331 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 08, 2024

Asked by Anonymous - Sep 07, 2024Hindi
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HI, I am don't want to disclose name I am facing some mental issue from last two year. In March my father passed I have not good relation with my parent, because their exception are very high which is not possible for me to satisfied. So after my father my mother start daily fight with me for small small thing, my mother has long history of mental issue, and my father did not address that . Now she want to what she did with my father. Due to daily quarrel my daily day to activity got affected. I can’t concentrate on my self. My confidence is loosing. I want to be alone and in peace. I have loving wife and caring son, but still I feel lost. And after covid my office atmosphere also get dirty. My senior keep me irritating without any issue. I know my problem is my mother and second is my office boss. Is there is any way without leaving to them. Otherwise, I am determined to leave both of them and live my life peacefully. Please advice
Ans: First, regarding your mother, it’s crucial to establish boundaries. Her mental health struggles are serious, but they shouldn’t be allowed to overshadow your own well-being. It might be helpful to seek professional support for her, such as counseling or therapy. If she’s unwilling, then finding ways to distance yourself emotionally from her criticism is key. It's not easy, but learning not to absorb her negativity can help protect your mental health. You might also consider speaking to a counselor yourself to help you process these feelings and find strategies for coping with her behavior without having to completely sever ties.

As for your work situation, it sounds like the toxic environment is wearing you down. If leaving isn’t an immediate option, try to find small ways to shield yourself from the negativity. Can you limit your interactions with your senior or find ways to compartmentalize work stress so it doesn’t bleed into your personal life? Sometimes, focusing on things outside of work—hobbies, time with your wife and son—can provide a needed escape.

It sounds like you're craving solitude and peace, and while leaving both your mother and your job might seem like a solution, it may not be the only one. Start with small, manageable changes: establishing firmer boundaries with your mother, finding a counselor to talk to, and protecting your emotional space at work. These steps can help you regain control and give you the peace you're seeking without drastic decisions. Remember, you deserve that peace, and it’s possible to find it with the right support.

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Kanchan

Kanchan Rai  |331 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 08, 2024

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