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Samraat

Samraat Jadhav  |2228 Answers  |Ask -

Stock Market Expert - Answered on May 13, 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
girish Question by girish on May 13, 2024Hindi
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Hello Sir, I have been investing in SIP since 2018 of Rs.1000/- each in the following stock. 1) Aditya Birla Sun Life Small Cap Fund - GROWTH 2) Axis Flexi Cap Fund - Regular Plan - Growth 3) Canara Robeco Emerging Equities - Regular Plan - GROWTH 4) HDFC Large and Mid Cap Fund - Regular Growth Plan 5) ICICI Prudential Flexicap Fund – Growth 6) Nippon India ELSS Tax Saver Fund-Growth Option and I have also invested Rs.50,000/- in liquiloan. Sir I need ur advice should I need to continue with the same stock or do I need to make some changes in my stock. Sir pls reply this is my 3rd time I have same question but no reply from ur side pls do reply

Ans: what is your vision behind investing and how long are you going to invest?
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  |8125 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Hii i am investing in SIP since 1 year in ICICI prudential commodities Fund direct growth Rs200 monthly, Tata digital India und direct growth Rs150 Monthly, HDFC Technology Fund direct growth Rs100 monthly, ICICI prudential Technology direct plan growth Rs100 monthly, Nippon India Pharma fund direct growth Rs300 monthly, Nippon India small cap fund direct growth Rs300 monthly, axis nifty IT index fund direct growth Rs1000 monthly, ICICI prudential bluechip fund direct growth Rs250 monthly, Aditya Birla Sun Life digital India fund direct growth Rs100 monthly, ICICI prudential NASDAQ 100index fund direct growth Rs300 monthly, HDFC transportation and logistics fund direct growth Rs200 monthly so I invested in above SIPs Total monthly i invest Rs3000 so please give me some suggestions or modifications if required
Ans: Your Current SIP Portfolio
You have been investing ?3,000 monthly across various SIPs for a year. Your chosen funds focus on technology, healthcare, commodities, and other sectors. This shows a good start towards disciplined investing.

Concentration in Technology Sector
A significant portion of your investments is in technology-focused funds. Technology funds can offer high returns but also come with high volatility.

Sector-Specific Funds
You also have investments in healthcare, commodities, and logistics funds. Sector-specific funds can be very volatile as they depend on the performance of their respective sectors.

Diversification
Your portfolio lacks diversification. Investing too much in a single sector increases risk. Diversification helps in balancing risk and returns.

Importance of Broad Market Exposure
Diversifying across different market segments reduces risk. Balanced exposure to large-cap, mid-cap, and small-cap funds is crucial. This strategy ensures you are not overly dependent on one sector's performance.

Adding Stability with Debt Funds
Including debt funds can provide stability. Debt funds offer regular returns and reduce the overall risk in your portfolio. This balance is vital for long-term growth.

Benefits of Actively Managed Funds
Actively managed funds can outperform index funds due to professional management. Fund managers actively select stocks to maximize returns. This can be advantageous, especially in volatile markets.

Disadvantages of Index Funds
Index funds mirror the market index and do not aim to outperform it. They lack flexibility in changing market conditions. Actively managed funds, on the other hand, adapt to market changes, providing better growth potential.

Direct Funds vs. Regular Funds
Direct funds have lower expense ratios but require thorough research and monitoring. Regular funds, through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP), offer professional guidance and management. This can be valuable for optimizing returns and managing risks effectively.

Suggested Modifications
Reduce Sector-Specific Overweight

Reduce the number of technology and sector-specific funds. This will help in balancing the portfolio and reducing sector-specific risks.

Increase Broad Market Exposure

Allocate more funds to diversified equity funds. Large-cap and multi-cap funds provide stable returns and reduce overall risk.

Include Debt Funds for Stability

Add debt or hybrid funds to your portfolio. This will provide regular returns and reduce the volatility of your overall investment.

Suggested Allocation
Technology Funds: Choose one or two funds to maintain some exposure but reduce concentration.
Broad Market Funds: Increase investment in large-cap and multi-cap funds for stable growth.
Debt Funds: Allocate a portion to debt funds for stability.
Regular Monitoring and Review
Monitor your investments regularly. Review fund performance annually and adjust your portfolio based on your financial goals and market conditions.

Conclusion
Your dedication to investing through SIPs is commendable. With a few adjustments, you can achieve a balanced and diversified portfolio. This will help you meet your long-term financial goals with reduced risk.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8125 Answers  |Ask -

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

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Hi, Every month i invest Rs.6000 (i.e 1000 in each SIP as below 1) Aditya Birla Sun Life Small Cap Fund - GROWTH, 2) Axis Flexi Cap Fund - Regular Plan - Growth ,3)Canara Robeco Emerging Equities - Regular Plan - GROWTH ,4)HDFC Large and Mid Cap Fund - Regular Growth Plan ,5)ICICI Prudential Flexicap Fund - Growth ,6)Nippon India ELSS Tax Saver Fund-Growth Option and RS.50,000/- in Liquiloans is it good ? should i continue with the same stock..
Ans: It's great to see your disciplined approach towards investing through SIPs and also diversifying across various mutual fund categories. Let's review your current investments and provide some insights:

Diversification: You've done a good job diversifying across different mutual fund categories like Small Cap, Flexi Cap, Emerging Equities, Large and Mid Cap, Flexicap, and ELSS. This approach can help spread the risk and potentially enhance returns.
Performance Review: It's essential to periodically review the performance of your funds. While past performance is not indicative of future results, checking the fund's performance relative to its benchmark and peers can give you insights into its consistency and potential.
Liquiloans: Investing in platforms like Liquiloans involves lending money to borrowers, which carries a higher level of risk compared to traditional investment avenues. The risk associated with such platforms is higher due to factors like borrower defaults and platform-specific risks. Given the higher risk involved, it's crucial to evaluate whether this aligns with your risk tolerance and overall investment strategy. Considering your other diversified mutual fund investments, you might want to reconsider allocating a significant portion to such platforms and explore more stable and regulated investment options to safeguard your investment capital.
Professional Advice: Consider consulting a Certified Financial Planner to get a comprehensive review of your portfolio. They can provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon. They can also guide you on whether to continue with your current SIPs or make any necessary adjustments.
Stay Invested: Investing is a long-term journey, and it's essential to stay invested and not get swayed by short-term market fluctuations.
Remember, while your current investment strategy seems well-diversified, it's crucial to review and adjust periodically to align with your financial goals and market conditions. Best wishes on your investment journey!

..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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