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Should I be worried about my Demat account with Reliance SmartMoney?

Samraat

Samraat Jadhav  |2101 Answers  |Ask -

Stock Market Expert - Answered on Aug 26, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Mel Question by Mel on Aug 26, 2024Hindi
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Hello Sir, Hope this mail finds you well ! I have demal account with Reliance Securities (Reliance SmartMoney). With the recent news of SEBI banning Anil Ambani, will it have any impact on my demat account ? Are all the shares & investment with Reliance Securities safe ? Please advise.

Ans: no problem with dmat as its safe with depositary, still if you have doubt you can open a new dmat account and transfer your securities.
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

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Dear Sir, is my long investment secure with DKZ investment, Hyderabad as it's not registered with SEBI?
Ans: Investing with a firm that is not registered with the Securities and Exchange Board of India (SEBI) poses significant risks to your investment. SEBI registration ensures that investment firms comply with regulatory standards, investor protection measures, and transparency requirements, which are essential for safeguarding investors' interests.

Here are some considerations regarding investing with a firm not regd with SEBI:

SEBI Registration: SEBI registration is mandatory for any entity engaged in offering investment-related services, including portfolio management, advisory, and fund management. Lack of SEBI registration raises concerns about the legitimacy and regulatory compliance of the investment firm.

Investment Protection: Investing with unregistered firms exposes you to higher risks of fraud, mismanagement, and potential loss of capital. Without SEBI oversight, there may be limited recourse in case of investment disputes, fraudulent activities, or financial irregularities.

Due Diligence: Before investing with any investment firm, conduct thorough due diligence to verify their credentials, track record, regulatory status, and client reviews. Look for reputable firms with established track records, transparent operations, and regulatory compliance.

Legal Implications: Investing with unregistered investment firms may violate securities laws and regulations, potentially subjecting investors to legal and financial liabilities. Ensure that your investment decisions comply with applicable laws and regulations to avoid legal repercussions.

Professional Advice: Seek guidance from a certified financial advisor or investment professional who can assess the risks and benefits of investing with any unregistered firm. They can provide personalized recommendations based on your financial goals, risk tolerance, and investment preferences.

In conclusion, investing with an unregistered investment firm like carries inherent risks and may not provide adequate investor protection or regulatory oversight. Prioritize investing with SEBI-registered entities that adhere to regulatory standards and ensure transparency and accountability in their operations. Always exercise caution and conduct thorough due diligence before entrusting your funds to any investment firm.

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Ramalingam

Ramalingam Kalirajan  |7184 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 2024

Money
Sir, I have started two new SIPs ( @4K each) through MF just in last month, namely Quant Mid cap and Quant Large & Mid cap. Including these two presently I am continuing 60K of SIPs in different MFs for last 1 yr. Also had a plan to start a new SIP of 6K through Quant ELSS fund. But, after todays news of SEBI on Quant MF, I am confused. Should I stop the said one month old two funds and not to start ELSS or what? I have partially decided to continue with existing two funds and carefully watch on the situation for one/two year and not to start new MF with Quant. What should I do? Pls suggest.
Ans: First of all, commendations on your dedication to investing and planning for your financial future. Your efforts in consistently investing through SIPs are commendable. I understand your concern regarding the recent SEBI news about Quant Mutual Funds. Let’s address your queries and develop a comprehensive approach to your investment strategy.

Current SIP Investments
Your commitment to Rs 60,000 in SIPs over the last year is a strong start. SIPs offer the advantage of rupee cost averaging and can help in building a substantial corpus over time.

Evaluating Recent Investments
Given your recent start with Quant Mid Cap and Quant Large & Mid Cap funds, and the news about SEBI’s stance on Quant MF, your concerns are valid. Here’s a detailed analysis:

Market and Regulatory Sentiments: Regulatory actions can sometimes create uncertainty. However, it’s important to understand the specifics of SEBI's concerns and how they might impact the fund's performance and management.

Fund Performance: Before making any decisions, evaluate the historical performance of these funds. Look at their consistency, returns, and how they have managed risks.

Fund Management: Assess the expertise and track record of the fund managers. Effective management can often navigate through regulatory and market challenges.

Deciding on Continuation or Stopping SIPs
Continue Monitoring
Your decision to continue with the two existing funds while monitoring the situation is prudent. Here’s why:

Long-Term Perspective: Equity investments, especially in mutual funds, are meant for the long term. Short-term fluctuations or news should not drastically impact long-term strategies.

Performance Review: Regularly review the performance of these funds over the next 6-12 months. Evaluate them against their benchmarks and peer funds.

Adjust if Needed: If you notice consistent underperformance or if regulatory issues significantly impact the fund, consider reallocating to more stable funds.

New SIP in Quant ELSS
Considering the SEBI news, it’s understandable to be cautious about starting a new SIP in Quant ELSS. Here’s an alternative approach:

Diversification: Instead of putting all your SIPs in Quant funds, consider diversifying across different fund houses. This spreads your risk and can provide stability.

Evaluate Other ELSS Funds: Look for other ELSS funds with strong track records, good management, and consistent performance. ELSS not only offers tax benefits but also has the potential for good long-term returns.

Advantages of Actively Managed Funds
Actively managed funds are beneficial for several reasons:

Expertise: Fund managers actively make decisions to maximize returns and minimize risks.

Flexibility: These funds can adapt to changing market conditions, unlike index funds which replicate market performance.

Disadvantages of Direct Funds
While direct funds have lower expense ratios, there are notable disadvantages:

Lack of Professional Guidance: Without a Certified Financial Planner, managing direct funds can be challenging.

Time-Consuming: Monitoring and adjusting investments require significant time and expertise.

Recommended Strategy for Your SIPs
Diversified Portfolio
A well-diversified portfolio across different fund categories can enhance returns and reduce risks. Consider these steps:

Large Cap Funds: These funds invest in well-established companies with a stable growth trajectory.

Mid Cap Funds: They invest in medium-sized companies with potential for high growth.

Small Cap Funds: Suitable for aggressive investors, these funds can offer high returns but come with higher risks.

Balanced or Hybrid Funds: These funds offer a mix of equity and debt, providing stability and growth.

Regular Reviews
Schedule regular reviews with your Certified Financial Planner to ensure your portfolio remains aligned with your financial goals and market conditions. Adjustments may be necessary based on performance and market changes.

Building a Robust Investment Plan
Your goal should be to build a robust investment plan that can withstand market fluctuations and regulatory changes. Here’s how:

Emergency Fund
Maintain your emergency fund of Rs 15 lakhs. This provides a safety net for unexpected expenses and ensures you don’t have to dip into your investments prematurely.

Goal-Based Investments
Children’s Education: Continue investing through SIPs in diversified equity funds for long-term growth. This will help accumulate the required corpus for their education.

Retirement Planning: Invest in aggressive growth funds for your retirement goal. Starting early and maintaining consistency will leverage the power of compounding.

Importance of Staying Informed
Stay informed about market trends and regulatory changes. Knowledge empowers you to make informed decisions and adapt to changes effectively.

Role of a Certified Financial Planner
A Certified Financial Planner can provide invaluable guidance. They can:

Customise Portfolio: Tailor your investments based on your financial goals, risk tolerance, and market conditions.

Regular Monitoring: Continuously monitor your portfolio and make necessary adjustments.

Risk Management: Help you navigate market and regulatory risks effectively.

Final Insights
Your proactive approach to investing is commendable. Continuously monitoring and reviewing your investments is crucial. While the SEBI news about Quant MF is concerning, maintaining a long-term perspective is important. Diversify your portfolio to mitigate risks and ensure you are investing in well-managed funds.

Stay informed, regularly review your portfolio, and seek guidance from a Certified Financial Planner. This comprehensive approach will help you achieve your financial goals and secure your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Radheshyam

Radheshyam Zanwar  |1076 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 30, 2024

Asked by Anonymous - Nov 29, 2024Hindi
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Hello sir, I am a 11th grade student. Now iam very confused amd depressed that what should i study now. Let me tell my goals. 1st thing is i want to get top 3 rank in my school examination and 2nd is to prepare for JEE MAIN examination and 3rd is to complete 12th std portions before May month 2025 to score a very good mark in my 12th board examination at 2026. And i also need to complete my JEE MAINS portions before november month for my Jee mains examination which is at Jan month and i need to crack it with 99 percentile at my first attempt and get into any one of the prestigious colleges. But iam very confused that what engineering should i choose. According to me I love all the engineering fields but i need to choose a field which will give the highest salary.These are the things that are revolving in my mind. Can you please give me perfect solution for my 5 confusions..
Ans: Hello dear.
Without taking an examination, without any score in hand, without any college in hand, without any course in hand, you are thinking and thinking and thinking for no reason. The goals/targets set by you are appreciable. But to convert them into reality, you have to work hard and excel in all the examinations. The highest salary is not only based on your degree or only on the college name. There are a lot of other parameters. Your journey is very long. Please keep your eyes only on your studies. Crack JEE (Mains + Adv) with a high score, get admission to a top IIT college, and choose the best course of your liking. Excel in the engineering then test the flavour of success. Best of luck for your upcoming bright 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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