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Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 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
Amod Question by Amod on Jun 26, 2024Hindi
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Hello Sir, I am 45 years old and I have invested through SIP in the following funds since last 13 years. 1. HSBC Flexi Cap Fund - Regular Growth 2. Invesco India Midcap Fund - Regular Growth my question is should I continue with these funds or should I shift to any other fund ? If I should shift then which fund do you suggest ?

Ans: Understanding Your Investment Goals
At 45, your financial goals are likely focused on retirement planning and wealth preservation. It's crucial to align your investments with these goals.

Reviewing Your Current Funds
You've been investing in HSBC Flexi Cap Fund and Invesco India Midcap Fund for 13 years. These funds have given you exposure to both large-cap and mid-cap stocks.

Performance Evaluation
Evaluate the performance of these funds. Check their returns, consistency, and performance against benchmarks. If they have consistently outperformed, they might still be good choices.

Risk Assessment
Assess the risk associated with your current funds. Mid-cap funds can be more volatile compared to flexi-cap funds. Ensure this risk aligns with your risk tolerance.


You've done a commendable job by investing regularly for 13 years. It shows your discipline and commitment to building wealth.

Should You Continue or Shift?
Reasons to Continue
Consistent Performance: If your funds have shown consistent performance, you may want to continue.
Low Exit Load: Exiting a fund with a low exit load or after the exit load period can save you money.
Familiarity: You're familiar with these funds and their performance trends.
Reasons to Shift
Underperformance: If the funds have underperformed compared to peers, it might be time to switch.
Changing Goals: If your financial goals or risk tolerance have changed, you may need different funds.
Market Conditions: Adapting to changing market conditions can sometimes warrant a shift in funds.
Evaluating Alternatives
If you decide to shift, consider funds that align with your goals. Evaluate their performance, risk, and consistency. Diversify across large-cap, mid-cap, and multi-cap funds.

Advantages of Actively Managed Funds
Active Management Benefits
Actively managed funds have fund managers who make strategic decisions to outperform benchmarks. They can adapt to market conditions better than index funds.

Flexibility
Actively managed funds can move in and out of sectors or stocks based on performance and market trends. This flexibility can lead to better returns.

Disadvantages of Index Funds
No Flexibility: Index funds stick to a predetermined portfolio, regardless of market conditions.
Average Returns: They aim to match, not beat, the index, leading to average returns.
Limited Downside Protection: In a downturn, index funds fall with the market, without any active measures to mitigate losses.
Personalized Recommendations
Aligning with Goals
Select funds that align with your retirement goals and risk tolerance. Consider a mix of large-cap, multi-cap, and balanced funds for a diversified portfolio.

Regular Reviews
Regularly review and rebalance your portfolio. Adjust your investments based on market conditions, fund performance, and changes in your financial goals.

Consulting a Certified Financial Planner
Consult a Certified Financial Planner (CFP) for personalized advice. They can provide tailored recommendations based on a comprehensive analysis of your financial situation.

Diversifying Your Investments
Balanced Funds
Balanced funds invest in a mix of equities and debt. They provide stability and growth, making them suitable for retirement planning.

Large-cap Funds
Large-cap funds invest in well-established companies. They offer stability and consistent returns, ideal for conservative investors.

Multi-cap Funds
Multi-cap funds invest across large, mid, and small-cap stocks. They provide diversification and potential for higher returns.

Debt Funds
Debt funds invest in fixed-income securities. They offer stability and are less volatile compared to equity funds.

International Funds
Consider international funds for geographic diversification. They provide exposure to global markets and reduce country-specific risks.

Final Insights
You've done well by investing regularly for 13 years. Evaluating your current funds and considering alternatives is wise as you approach retirement. Systematic Withdrawal Plans (SWPs) offer many benefits, including higher returns, tax efficiency, flexibility, and inflation protection. Diversify your portfolio across balanced, large-cap, multi-cap, debt, and international funds. Regularly review your investments and consult a Certified Financial Planner for personalized advice. This comprehensive approach will help you achieve your retirement goals and financial security.

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  |6971 Answers  |Ask -

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

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I am investing in following funds through SIP 1. HDFC top 200 Regular Growth since 2010 Rs. 3000 2. ICICI PRUDENTIAL LARGE & MIDCAP FUND GROWTH SINCE 2014 Rs. 2000 3. BANDHAN FLEXICAP FUND-GROWTH SINCE 2011 Rs. 2000 4. BSL FRONTLINE EQUITY FUND - GROWTH SINCE 2010 Rs. 3000 (STOPPED SIP IN 2020) 5. MIRAE ASSET BLUECHIP FUND - GROWTH SINCE 2021 Rs. 2500 6. HDFC FLEXI CAP - GROWTH SINCE 2022 Rs. 5500 PLEASE ADVICE ME WHETHER I SHOULD CONTINUE WITH THESE FUNDS OR EXIT. I FURTHER WANT TO INVEST Rs. 15000 MORE. PLEASE SUGGEST WHETHER I SHOULD INCREASE SIP AMOUNT IN THESE FUNDS OR START SIP IN NEW FUND
Ans: Assessing Your Mutual Fund Investments and Planning for the Future

Your portfolio demonstrates a disciplined approach to mutual fund investing over the years. Let's evaluate your current holdings and chart a course for future investments.

Analyzing Existing SIPs

HDFC Top 200, ICICI Prudential Large & Midcap, and Bandhan Flexicap Funds have been part of your investment journey for several years. These funds offer exposure to different market segments, providing diversification benefits.

BSL Frontline Equity Fund, while stopped in 2020, has a long track record of performance. It's essential to review the reasons for discontinuing this SIP and assess whether it aligns with your current investment strategy.

Mirae Asset Bluechip Fund and HDFC Flexi Cap Fund, initiated more recently, contribute to diversification and may offer growth potential.

Evaluating Performance and Suitability

Review the performance of each fund relative to its benchmark and peer group. Assess whether the fund manager's investment approach and strategy align with your risk tolerance and investment objectives.

Consider the consistency of returns, risk-adjusted performance, and fund management quality. Additionally, evaluate the fund's expense ratio and turnover ratio to ensure cost-effectiveness.

Deciding Whether to Continue or Exit

Continue SIPs in funds with consistent performance, robust fundamentals, and alignment with your investment goals.

Consider exiting funds that consistently underperform their benchmarks or peers, have experienced significant changes in fund management, or deviate from your risk profile.

Planning Additional Investments

Given your intention to invest an additional Rs. 15,000, consider the following options:

Increase SIP amounts in existing funds with proven track records and growth potential. This approach maintains continuity and capitalizes on the strengths of your current portfolio.

Explore new funds that complement your existing holdings and provide exposure to underrepresented sectors or asset classes. Conduct thorough research and seek professional advice to identify suitable options.

Seeking Professional Guidance

As a Certified Financial Planner, I recommend conducting a comprehensive portfolio review to ensure alignment with your financial goals and risk tolerance. Regular monitoring and periodic adjustments are essential to optimize your investment outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 2024

Asked by Anonymous - May 09, 2024Hindi
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I have SIP in following funds since one year, should I continue or switch: 1. SBI PSU fund - 3000 2. SBI Healthcare Opportunities Fund - 3000 3. SBI Contra Fund - 5000 4. Quant Small Cap Fund - 4000 5. Quant Mid Cap Fund - 2000 6. Nippon India Small Cap Fund - 4000 Should I continue or switch - please advise.
Ans: Evaluating Your Investment Portfolio: Should You Continue or Switch?
Understanding Your Current Portfolio
Your current investment portfolio consists of a mix of actively managed mutual funds across various categories. Let's delve into each fund and evaluate its performance and potential.

Assessing Fund Performance
SBI PSU Fund: This fund invests primarily in stocks of public sector undertakings. Over the past year, its performance may have been affected by market conditions and the performance of PSU stocks.
SBI Healthcare Opportunities Fund: Focused on the healthcare sector, this fund may have seen fluctuations due to sector-specific factors and market dynamics.
SBI Contra Fund: As a contrarian fund, it aims to invest in undervalued stocks. Its performance depends on the fund manager's ability to identify such opportunities.
Quant Small Cap Fund & Quant Mid Cap Fund: These funds target small and mid-cap stocks, which can be volatile but offer growth potential.
Nippon India Small Cap Fund: Similar to the Quant funds, this one focuses on small-cap stocks, which carry higher risk but can deliver higher returns over the long term.
Considering Switching Options
Switching investments should be driven by changes in your financial goals, risk tolerance, and the performance of your current funds. Here are some considerations:

Performance Comparison: Evaluate the performance of your funds against their benchmarks and peers. Consistent underperformance might warrant a switch.
Diversification: Assess the diversification of your portfolio across sectors and market caps. Switching may be considered to achieve better diversification.
Expense Ratio: Actively managed funds typically have higher expense ratios compared to index funds. However, they may offer the potential for outperformance, which needs to be weighed against the higher costs.
Decision Making
Review Your Goals: Reflect on your financial goals and investment horizon. Ensure that your investment choices align with your objectives.
Risk Tolerance: Consider your risk tolerance and whether you are comfortable with the volatility associated with certain sectors or market segments.
Consultation: Seek advice from a Certified Financial Planner (CFP) who can provide personalized guidance based on your individual circumstances.
Conclusion
In conclusion, the decision to continue or switch your investments depends on various factors including performance, diversification, and alignment with your financial goals. A thorough evaluation of each fund's performance and your investment objectives is crucial in making an informed decision.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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I am having following 6 regular SIPs in mutual funds 1. SBI Contra Fund Rs 2,000/- 2. SBI Small Cap Fund ,000/- 3. SBI Retirement Benefit Fund Aggressive Growth Rs 2,000/- 4. SBI PSU Fund lumpsum Rs 11000/- 5. Quant Small Cap Fund Rs 1000/- 6. ICICI Prudential Infrastructure Growth Fund 500/- Please advise whether I should continue with these funds or exit. Aloke
Ans: Review and Recommendations for Your Mutual Fund Portfolio
Overview of Your Current Investments
You have a diversified portfolio with the following SIPs and a lump sum investment:

SBI Contra Fund: ?2,000/- per month
SBI Small Cap Fund: ?2,000/- per month
SBI Retirement Benefit Fund Aggressive Growth: ?2,000/- per month
SBI PSU Fund: Lump sum ?11,000/-
Quant Small Cap Fund: ?1,000/- per month
ICICI Prudential Infrastructure Growth Fund: ?500/- per month
Compliments on Your Investment Strategy
Your disciplined approach to investing through regular SIPs is commendable. Investing in a variety of funds shows your understanding of diversification. This strategy helps mitigate risks and enhances the potential for growth.

Analytical Review of Your Portfolio
SBI Contra Fund:

Contra funds invest in undervalued stocks, anticipating future growth.
These funds can offer high returns but come with increased risk.
Consider if this aligns with your risk tolerance and investment horizon.
SBI Small Cap Fund:

Small cap funds can generate significant growth over time but are highly volatile.
Ensure this fund aligns with your risk appetite and long-term goals.
SBI Retirement Benefit Fund Aggressive Growth:

This fund focuses on long-term growth for retirement.
It's a good choice for aggressive investors aiming for high returns over time.
SBI PSU Fund:

Investing in Public Sector Units can be beneficial but is sector-specific and carries concentration risk.
Regularly review this fund's performance and the overall sector outlook.
Quant Small Cap Fund:

Like the SBI Small Cap Fund, this fund offers high growth potential with high risk.
Diversifying within the small cap segment might not be necessary.
ICICI Prudential Infrastructure Growth Fund:

Infrastructure funds invest in infrastructure-related companies.
These funds can provide good returns during economic growth periods but are sector-specific and volatile.
Recommendations for Portfolio Improvement
Diversify Across Market Caps and Sectors:

Your portfolio has a significant focus on small cap and sector-specific funds.
Consider adding a large cap or a diversified equity fund to balance risk and stability.
Consolidate Small Cap Investments:

Holding multiple small cap funds may not be necessary.
You can consolidate into one fund to avoid overlap and simplify management.
Review Sector-Specific Funds:

Sector-specific funds like PSU and Infrastructure can be volatile.
Regularly monitor their performance and consider switching to more diversified funds if needed.
Consider Professional Management:

Direct funds have lower expenses but require active monitoring.
Investing through a certified financial planner can provide professional management and potentially better returns.
Steps for Continued Success
Regular Portfolio Reviews:

Periodically review your portfolio to ensure it aligns with your goals and market conditions.
Make adjustments as needed to stay on track.
Increase SIP Amounts Gradually:

As your income grows, consider increasing your SIP amounts.
This will help you build a larger corpus over time.
Maintain an Emergency Fund:

Ensure you have an emergency fund to cover unexpected expenses.
This prevents the need to withdraw from your investments prematurely.
Stay Informed and Educated:

Stay updated on market trends and financial news.
Continuous learning will help you make informed investment decisions.
Conclusion
Your current portfolio is well-diversified but has a significant focus on small cap and sector-specific funds. Consider balancing it with more stable large cap or diversified equity funds. Regularly review and adjust your investments to align with your goals and risk tolerance. Your disciplined investment strategy and thoughtful planning are commendable. With consistent efforts and regular reviews, you are well on your way to achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 15, 2024Hindi
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I am 50 years old and got married 15 years ago. I am a very spontaneous sort of a guy and enjoy life, partying etc. I was also very active socially.My wife being the complete opposite put a stop to all that once we got married. She also does not display any affection and has no interest in physical intimacy. She is just concerned with her housework.We also have lot of differences in mental attitude & intellectual abilities. At no stage will we ever seperate, however, I am unhappy with her nature. She has lot of friends, however is always at daggers drawn with in her in laws. We had to stay separately for 6 months, and I tried looking for love else where, however after a couple of months, I realised, that I missed her. I am in a quandary. Despite requesting her to work on our relationship, I get no response. Please advise on how to proceed.
Ans: Dear Anonymous,
I understand you are in a tough spot. But it's nice to see that after all those years of differences, you still have genuine feelings for her. I strongly suggest considering marriage counseling. From your description of your marriage, it seems to be there have been issues from the very beginning of it. It's been too long and now those issues must've become deep-rooted. Seeing a professional can be a game-changer. They can guide you out of this slump more methodically and help you navigate the emotions you are feeling right now. It can also help you understand the reasons for your wife's disinterest and handle it better.

Best Wishes

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Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 02, 2024Hindi
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Hii, I have an love marriage after 9 years of dating and 6 years, 2 children post marriage, my little one is 11 months old now. My husband has an affair upto chatting to someone in his company, his junior but in different department, when my Lil one was 1 month old, we had in a rough patch then due to child birth and family drama. When I saw it and confronted him, he said he is sorry and won't do it again, we had multiple fights for 3-4 months after then due to same reason, but he mostly listen and consol. It's been a lot of mental torture for me. I love my husband a lot and he is a good person, but sometimes sill I see her msg in his phone asking for small helps or casual msg. She is also married. I am not sure my husband deletes msg or what, I am not able to get over this. Before it, this is was preety much a good relationship. I am highly educated and independent women. I don't want anything form my husband apart from love. What should I do, whenever I tell him I want to just leave and let him have his life, he won't let me somehow. We are having a good physical relationship 2-4 times a week( just to tell where we are). Please help me...I can't overcome that he is making fool of me...
Ans: Dear Anonymous,
I am sorry to hear you are in such a tough spot. I would suggest considering marriage counseling. A professional who can help you both tackle these issues would be helpful in this situation. I understand that it was his mistake and he needs to put the effort to make you trust him again, but since you are still together, you will also have to put in the effort to let it. I know it is difficult and that's where marriage counselor comes in. They can help you navigate these feelings. Moreover, if he is indeed hiding something, therapy can help that come out in the open.

Hope this helps.

...Read more

Ravi

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Asked by Anonymous - Sep 10, 2024Hindi
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Hi, Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. Partner(F28)continuing friendship with a person[M] who had crush on her before marriage considered emotional infidelity? Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. My wife is having friendship (strictly platonic) with a guy from her 10tlh grade (same class). Before our marriage (she may be doing her college, our relationship just started may be 2 weeks) this guy told her he has genuine interest in her and he want to take the relationship further if she wants, she said she is not interested in a relationship and she got committed, she always saw him as a friend, no other feelings for him and we can be friends if you don't bring any romantic interest again. He never took this talk again ever after and happy to be a friend. They are talking as friends. She got married to me. He also got married. They still do chats once in a month. She introduced me to him and visited his home when we visited his city. He also came to our home once (me and my family was there). She used to update me with chat she had with him and the content they are chatting. I am ok with that When we were talking about our school life and college life 2 years before. She said this guy had crush on her during her college days. I asked her, why did not she tell me this info till now. She said it is not purposely, she does not feel the need to do as the person is not in-appropriate with her and continuing as good friend as promised after she rejected his proposal. I don’t want to create any unnecessary issues as I don’t have any felling or so with him. That time I checked their chats completely, it’s about update about their common friends, their recent travel, their job, meditation courses and the books they read recently. I haven’t seen any flirting or romantic message from either of them. So I am perfectly fine with it and had no problems. I recently came to know about the concept of emotional cheating which is very new to me. Before that cheating to me is only flirting, sexeting and physical sex. I have asked for advice in redddit.com in infedility sub forum about emotional cheating/ emotion affair. There persons are advising like even having friendship with someone who had crush on you is emotional cheating as it is indirectly leading them on you. So with an omission of lie he had crush on her and indirectly leading him on you wife was emotionally cheating on you. This is very much equal to cheating. I do have lots of friends in other gender, but no one had crush on me. Does this count as emotional cheating/affair as she did not mention he had crush on her before marriage? I am little depressed and not able to spend quality time with my wife who is in postpartum depression and take care of our daughter properly as before. Do you guys advise me how to navigate this situation?
Ans: Dear Anonymous,
Are you really going to ruin your happy relationship based on some new term you have learned recently? Emotional cheating and many more terms of the kind will come and go, what truly matters is the truth. She is merely friends with this guy and for your peace of mind, you have even checked their conversations- what part of it looks like cheating to you? If tomorrow, some random person projecting their own insecurities claims that a man speaking to a woman is some "new form" of cheating, would you start believing that? My point is that these are just random opinions of some people- it isn't the ultimate truth. The entire context matters. This man had a crush on your wife, she rejected it, and now they are just friends. I find absolutely no misconduct or infidelity in this. The fact that none of your friends had a crush on you does not factor in at all. Moreover, your wife is in postpartum depression- that should be your biggest concern but here you are, giving more importance to the random 2 AM thoughts of some people you don't even know. Please rethink if you are being fair to your wife- the mother of your child.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Oct 26, 2024Hindi
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Relationship
I (30M) am looking for Arranged Marriage Prospects. My Family has found a Prospect (27F) who seems like a Good Match, she's Well Educated, Earning Well & from the same Community. I haven't yet met her in Person, but connected with her on Social Media Platforms & interacting regularly. Recently, I scrolled through her Instagram Profile (It's a Public Profile). She seems to be a very Sociable Person, she has shared many Photos of herself, Partying/Travelling along with her Friends. My Problem is that she seems to like Wearing Clothes which are Revealing. She has shared many Photos/Videos, in which she's skimpily dressed (including some Bikini Photos at Beach/Swimming Pool). She also has a Pierced Navel Ring & Tattoos on some Private Parts like Chest, Hips, Thighs & Lower Back, which she flaunts proudly on Social Media. Though, I am not Judging her Character, based on her Choice of Clothing, but seeing all these made me a little Uncomfortable, as I am a very Modest & Simple Person myself. I have not discussed this issue with my Parents, as they have a very good opinion about her (which I don't want to Ruin). But I've discussed with some of my closest Friends (of both Genders) & some of them have Chided me for being so Judgemental. They suggested me to meet her atleast once in person, to understand what's her Character/Personality like. Shall I give it a try or Reject her Politely at this stage itself, without wasting any more Time (either her or mine)? Or am I being too Superficial to Judge a Woman, just based on her Social Media Profile, without even meeting her once, personally (This is what some of my closest Female Friends opined)? Please suggest me how to proceed with this Prospect in Arranged Marriage.
Ans: Dear Anonymous,
I know it might come off as you being judgmental of her choice of dressing, but you have a right to form an opinion in your mind, especially since in your case, you might be marrying the person. As long as you are not making up your mind about her based on her dressing, forcing her to dress the way she wants, or thrusting your opinion on her, it's alright. It's human nature to be a bit jerked by the choices others make that we won't make ourselves. Having said that, I believe meeting her once in person can be good for you; you might have a new perspective- both about her and on life. But no one can force you to do either. My suggestion is that do what you think is right- if you are sure you will reject this alliance based on her choice of clothes, even if she is the nicest person on the face of the earth, meeting up might be a waste of time. But if you think you are open to changing your mind, go for it.

I would also like for you to remember one important point if things work out between the two of you- do not try to push your opinions on dressing and change the way she is after getting married. That would not be fair. In case, you start hoping that she will change and fit YOUR mold of the perfect woman, I would strongly suggest keeping that thought in check.

Best Wishes.

...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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