Hello Sir, I want to invest 20k per month, 5k in ELSS and balance 15k in normal Mutual fund for better return. Kindly suggest.

Ans: Hi Ashish, it is better to invest in multiple schemes to create a balanced portfolio. Assuming you want to invest Rs.1,50,000 in ELSS to avail the tax savings, you can consider investing in:

1-Samco ELSS Tax Saver Fund: Rs.60,000
2-Axis Long Term Equity Fund: Rs.60,000
3-HDFC Tax Saver Fund: Rs.30,000

Ans: Hello Kumar. You may consider Quant and Bandhan tax saver funds.

Ans: For tax-saving purposes, ELSS (Equity Linked Savings Scheme) funds are an excellent option as they offer tax benefits under Section 80C of the Income Tax Act while providing the potential for long-term wealth creation through equity investments. When selecting an ELSS fund, consider factors such as historical performance, fund manager expertise, expense ratio, and investment strategy. Look for funds with a consistent track record of delivering competitive returns over the long term. It's advisable to consult with a financial advisor or conduct thorough research to choose the ELSS fund that aligns with your investment goals and risk tolerance.

Ans: Investing in ELSS Mutual Funds is a wise step towards achieving your goal of buying a home. With a monthly investment of 1 Lakh for 5 years, you demonstrate commendable commitment towards your objective.

ELSS funds, known for their potential to offer inflation-beating returns, are tax-efficient as well. By investing consistently over the years, you're leveraging the power of compounding to grow your wealth steadily.

Regular investments through a Certified Financial Planner can provide you with valuable insights and personalized advice, ensuring your investment strategy aligns with your financial goals.

While direct funds may seem appealing due to lower expense ratios, they often require expertise in fund selection and market timing, which can be challenging for individual investors.

Moreover, actively managed funds offer the advantage of professional fund management, which aims to outperform the market and deliver superior returns over the long term.

Index funds, on the other hand, may offer lower costs but lack the potential for active management to capitalize on market opportunities and navigate through volatility effectively.

By choosing ELSS funds over real estate, you're opting for a more liquid and diversified investment avenue, which can offer potentially higher returns with lower entry barriers and reduced risks associated with property investments.

Remember, consistency and patience are key to achieving your financial goals. Stay focused on your objective, and with the right investment strategy, you'll be closer to realizing your dream of owning a home.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: ETFs. However, it's essential to review your portfolio regularly to ensure alignment with your financial goals, risk tolerance, and market conditions. Here are a few suggestions:

Diversification: While it's good to have a diversified portfolio, make sure you're not over-diversified. Consider consolidating your investments into fewer funds to simplify tracking and monitoring.

Review Fund Performance: Evaluate the performance of each fund relative to its benchmark and peers. Identify any underperforming funds and assess whether they continue to align with your investment objectives.

Risk Management: Ensure that your portfolio is well-balanced in terms of risk exposure. Evaluate the risk profile of each fund and make adjustments if necessary to manage overall portfolio risk.

Cost Analysis: Review the expense ratios and other fees associated with each fund. Lower-cost funds can help improve your overall returns over the long term.

Rebalancing: Regularly rebalance your portfolio to maintain the desired asset allocation. This involves selling assets that have appreciated significantly and reinvesting the proceeds into underperforming assets to realign with your target allocation.

Seek Professional Advice: Consider consulting with a financial advisor or investment professional to get personalized recommendations based on your financial situation and goals.

By periodically reviewing and adjusting your investment portfolio, you can ensure that it remains optimized to help you achieve your long-term financial objectives.