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Ramalingam

Ramalingam Kalirajan  |7192 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 11, 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
Asked by Anonymous - Dec 18, 2023Hindi
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Hello Sir, I have been investing since 1year in *HDFC Index Fund Nifty 50 Plan Direct -8k *PGIM India Flexicap Fund Direct -5k *Canera Robecco Bluechip Equity Fund -5k. Should I continue in these funds? Or exit SIP in any of these? Please suggest if this is good as per current market status? I would like to invest for 3-5 years. If want to consider small cap fund, Nippon or Quant, which do you suggest. Thank you????

Ans: Given your investment horizon of 3-5 years, your current fund selection appears to be diversified, covering large-cap, flexi-cap, and blue-chip equity segments. Here are some considerations:

HDFC Index Fund Nifty 50 Plan Direct: As an index fund tracking the Nifty 50, it provides exposure to the top 50 companies in the Indian market. Since it's a passive fund, ensure you're comfortable with the index's performance and outlook.

PGIM India Flexicap Fund Direct: This flexi-cap fund offers flexibility to invest across market capitalizations based on market conditions. Flexi-cap funds can adapt to different market cycles, potentially offering better risk-adjusted returns.

Canara Robecco Bluechip Equity Fund: Blue-chip funds typically invest in well-established, large-cap companies with a history of stable performance. They can provide stability to your portfolio.

Review the performance of each fund, their investment strategy, expense ratios, and the current market outlook. If you're considering adding a small-cap fund for diversification, both Nippon and Quant are reputable options. Evaluate their past performance, investment approach, and risk profile before making a decision. Consider consulting with a financial advisor for personalized advice based on your financial goals and risk tolerance.
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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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Aug 04, 2020

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Can you please review my below funds and suggest the course of action? Presently investing through SIP: UTI Nifty Index Fund - Dir G Plan: Rs 4000 HDFC Index Fund - Dir G Plan: Rs 4000 SBI Blue Chip Fund Dir Plan-G: Rs 4000 (3.55% return) Mirae Asset Large Cap Fund - Dir-G: Rs 4000 Canara Robeco Equity Diversified - Growth  4000 IIFL Focused Equity Fund - Dir - Growth: Rs 2000 Axis Small cap fund - Growth-Direct: Rs 2000 UTI Value Opportunities Fund - Dir – Growth: Rs 2000 LIC MF Large & Mid Cap Fund - Dir - Growth: Rs 2000 Axis Midcap fund - Growth - Direct: Rs 2000 Axis Blue Chip fund - Growth - Direct: Rs 4000 Axis Small Cap fund - Direct- Growth: Rs 2000 One time investments done: Kotak Money Market Sch-Dir Plan-Gr  IDFC Government Securities Fund-Investment Plan-Growth-(Direct Plan) Principal Credit Risk Fund -Reg Plan UTI Ultra Short Term Fund - Dr Plan - Gr Previously invested through SIP but stopped now. I want to exit these funds. When can I exit? ABSL Equity Fund - Growth-DIRECT (4.47% return) ABSL Frontline Equity Fund -Grow-DIRECT (0.79% return)  Kotak Std Multicap-Direct Plan-Gr (4% return) L&T Emerging Businesses Fund Direct Plan (-15% return) L&T India Value Fund Direct Plan – Growth (0.38% return)
Ans:
Name of the Fund Category RankMF Star Rating Recommendations
Balla Kumar Hemant      
UTI Nifty Index Fund - Dir G Plan: Rs 4000 Index Funds - Nifty 4 continue
HDFC Index Fund - Dir G Plan: Rs 4000      
HDFC Index Fund - NIFTY 50 Plan - Growth Index Funds - Nifty 4 continue
HDFC Index Fund Sensex Plan Index Funds - Sensex 5 continue
SBI Blue Chip Fund Dir Plan-G: Rs 4000 (3.55% return) Equity - Large Cap Fund 3 Switch to UTI MasterShare - Growth
Mirae Asset Large Cap Fund - Dir-G: Rs 4000 Equity - Large Cap Fund 4 Continue
Canara Robeco Equity Diversified - Growth  4000 Equity - Multi Cap Fund 4 continue
IIFL Focused Equity Fund - Dir - Growth: Rs 2000 Equity - Focused Fund 2 switch to Axis Focused 25 Fund  - Growth 
Axis Small cap fund - Growth-Direct: Rs 2000 Equity - Small cap Fund 2 switch to Axis ESG Fund  - Growth
UTI Value Opportunities Fund - Dir – Growth: Rs 2000 Equity - Value Fund 3 switch to Axis ESG Fund  - Growth
LIC MF Large & Mid Cap Fund - Dir - Growth: Rs 2000 Equity - Large & Mid Cap Fund 2 Switch to Canara Robeco Emerging Equities Regular -growth  
Axis Midcap fund - Growth - Direct: Rs 2000 Equity - Mid Cap Fund 2 Switch to - Dsp Midcap Fund - Growth
Axis Blue Chip fund - Growth - Direct: Rs 4000 Equity - Large Cap Fund 3 Switch to UTI MasterShare - Growth
Axis Small Cap fund - Direct- Growth: Rs 2000 Equity - Small cap Fund 2 switch to Axis ESG Fund  - Growth
Kotak Money Market Sch-Dir Plan-Gr  Debt - Money Market Fund 5 continue
IDFC Government Securities Fund-Investment Plan-Growth-(Direct Plan) Debt - Gilt Fund 5 continue
Principal Credit Risk Fund -Reg Plan Debt - Credit Risk Fund 1 Credit Risk funds to be avoided , instead Corporate Bond or Banking and PSU funds to be considered
UTI Ultra Short Term Fund - Dr Plan - Gr Debt - Ultra Short Duration Fund 5 continue
ABSL Equity Fund - Growth-DIRECT (4.47% return) Equity - Multi Cap Fund 2 Switch to UTI Equity fund  - Growth
ABSL Frontline Equity Fund -Grow-DIRECT (0.79% return)  Equity - Large Cap Fund 3 Switch to UTI MasterShare - Growth
Kotak Std Multicap-Direct Plan-Gr (4% return) Equity - Multi Cap Fund 2 Switch to UTI Equity fund  - Growth
L&T Emerging Businesses Fund Direct Plan (-15% return) Equity - Small cap Fund 2 switch to Axis ESG Fund  - Growth
L&T India Value Fund Direct Plan – Growth (0.38% return) Equity - Value Fund 2 switch to Axis ESG Fund  - Growth

..Read more

Ramalingam

Ramalingam Kalirajan  |7192 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 2024

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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

..Read more

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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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