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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Nov 21, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Asked by Anonymous - Nov 19, 2023Hindi
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Hello Sir. I am investing via SIP in Parag Parikh Flexi Cap Fund (15k), PGIM Flexi Cap (5k), UTI Nifty50 (10k), Kotak Emerging Equity (5k), Motilal oswal Midcap (6k), Tata Small Cap (4k) all in Direct growth. Please review my funds.

Ans: Hello and thanks for writing to me. I am assuming that you are investing for the long term for wealth creation and are fine with taking risks.

For that goal, the fund selection is fine, but you can consider reducing the investment in the NIFTY 50 passive to Rs.5,000 and start an SIP of Rs.5,000 in a multi cap fund.

Do note that periodic rebalancing is essential to ensure that you are on the right track. Stepping up your SIP's every year will help you create a larger corpus.
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  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 04, 2024

Asked by Anonymous - Jan 03, 2024Hindi
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Hi sir.. I have invested 2000 rs sip in each of the following funds. 1.parag Parikh flexi cap 2.pgim flexi cap 3.canara robecco emerging equities 4.sbi magnum midcap 5.bandhan banking and psu fund I am 27 years old and have been investing in these funds since 3 years..plz check my funds and give me some suggestions if needed
Ans: It seems like you have a well-diversified portfolio with exposure to different market segments and investment styles. However, here are a few suggestions to consider:

Review Performance: Evaluate the performance of each fund relative to its benchmark and peers. Look for consistent performance over different market cycles. If any fund consistently underperforms, consider replacing it with a better-performing alternative.

Assess Diversification: Ensure that your portfolio is adequately diversified across asset classes, sectors, and market capitalizations. While you have exposure to flexi-cap, mid-cap, and banking sectors, consider if there are any gaps in your diversification that need to be addressed.

Risk Management: Consider your risk tolerance and investment horizon when reviewing your portfolio. Mid-cap and emerging equities funds tend to be more volatile, so make sure you're comfortable with the level of risk in your portfolio.

Stay Informed: Stay updated on market developments and periodically review your portfolio to make necessary adjustments based on changing market conditions or personal circumstances.

Long-Term Perspective: Since you're relatively young with a long investment horizon, focus on long-term wealth creation and avoid making impulsive decisions based on short-term market fluctuations.

Overall, continue to monitor your portfolio regularly and make adjustments as needed to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a financial advisor for personalized advice based on your individual situation.

..Read more

Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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Hello sir, i am 32 years old and just started a SIP investment of 7K per month for the following funds for wealth creation for next 10 - 15 years. Core portfolio (60%) 1. Parag Parikh flexicap fund - 1.5K 2. JM Flexicap - 2K 3. Navi Nifty 50 - 0.5K Satellite portfolio (40%) 1. Kotak Emerging Equity Fund - 0.8K 2. JM Midcap fund - 1K 3. Tata smallcap fund - 0.7K 4. Edelweiss midcap 150 momentum 50 - 0.5K Could please review and advise me whether the above funds is to be considered good. Please provide some suggestions if changes required.
Ans: Your SIP portfolio seems well-diversified across various categories of equity funds, which is a good approach for long-term wealth creation. Let's review each fund and provide some suggestions:

Core Portfolio (60%):

Parag Parikh Flexicap Fund: This fund follows a flexible investment approach across large, mid, and small-cap stocks. It's known for its quality stock selection and has delivered consistent returns over the years.
JM Flexicap Fund: Another flexi-cap fund, providing exposure to companies across market capitalizations. Ensure you review its performance and consistency compared to peers.
Navi Nifty 50: Investing in an index fund like Navi Nifty 50 provides exposure to India's top 50 companies. It's a low-cost option with a focus on large-cap stocks.
Satellite Portfolio (40%):

Kotak Emerging Equity Fund: This fund focuses on emerging companies with high growth potential. Review its performance and ensure it aligns with your risk appetite.
JM Midcap Fund: Mid-cap funds like JM Midcap can offer higher growth potential but come with higher volatility. Monitor its performance and risk closely.
Tata Smallcap Fund: Investing in small-cap funds can provide exposure to high-growth companies. Ensure you're comfortable with the risk associated with small-cap investing.
Edelweiss Midcap 150 Momentum 50: This fund follows a momentum-based investment strategy, focusing on mid-cap stocks showing positive price momentum. Understand its investment approach and risk profile.
Suggestions:

Monitor Performance: Regularly review the performance of your funds and ensure they're meeting your expectations. Consider replacing underperforming funds with better alternatives.
Risk Management: Given the higher allocation to mid-cap and small-cap funds in your portfolio, be prepared for higher volatility. Ensure your risk tolerance aligns with the risk profile of these funds.
Review Fund Selection: Consider diversifying across fund houses to reduce concentration risk. Also, consider adding an international equity fund or a debt fund for further diversification.
Long-Term Perspective: Stay focused on your long-term investment horizon and avoid making knee-jerk reactions based on short-term market movements.
Overall, your SIP portfolio appears well-structured for wealth creation over the next 10-15 years. However, regularly monitoring and reviewing your portfolio's performance is essential to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a financial advisor for personalized guidance based on your individual circumstances.

..Read more

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Nayagam P

Nayagam P P  |3935 Answers  |Ask -

Career Counsellor - Answered on Nov 27, 2024

Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 27, 2024

Asked by Anonymous - Nov 27, 2024Hindi
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Hi, sir I am a an 30 year old (single) engineer working with a MNC in Chennai, unfortunately till this day i haven't had any savings at all for my future (retirement, other short term or long term goals). Currently my take home salary after EPF and parental insurance is 53k ( EPF is about 4900/month - employee+employer) i haven't opted for Corporate NPS but is provided by the company without any additional contribution from company. I have company health insurance policy and have planned to take my own health insurance and term insurance plan. Adding to above I have zero emergency fund with me. How should I proceed with my investments?
Ans: You have taken the first step by recognising the need to plan. It’s essential to appreciate your intention to secure your financial future. Let’s look at how you can proceed to achieve your short-term and long-term goals.

Your current take-home salary is Rs 53,000, and your EPF contribution is Rs 4,900. However, you lack savings, investments, and an emergency fund. Here's a step-by-step strategy:

Build an Emergency Fund
Set aside funds to cover at least six months' expenses.

Start by saving 10-15% of your salary monthly into a high-interest savings account.

Use Recurring Deposits or Liquid Mutual Funds to maintain this fund for emergencies.

Secure Yourself with Insurance
Health insurance: Maintain your company health policy but add a personal health policy. Choose a policy offering a sum insured of Rs 10-15 lakh.

Term insurance: Buy a term plan covering 10-15 times your annual income. Keep the policy simple and avoid investment-linked insurance.

Budget Your Income
Allocate your income carefully for expenses, savings, and investments.

Use the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and investments.

Avoid unnecessary expenses to increase your saving capacity.

Start Investing Gradually
Short-term goals (1-5 years): Invest in debt funds or recurring deposits. Debt mutual funds are good for stable returns.

Long-term goals (5+ years): Invest in equity mutual funds for higher returns. Choose actively managed funds with consistent performance.

Avoid index funds. Actively managed funds have a better potential for higher returns through professional fund management.

Retirement Planning
Utilise the EPF for retirement. Your current contribution will grow over time with compounding.

Consider investing in diversified equity mutual funds for additional retirement savings.

Corporate NPS: You can explore NPS for its tax-saving benefits. However, don’t rely solely on it for retirement.

Tax-Saving Investments
Use Section 80C to save taxes up to Rs 1.5 lakh.

EPF, PPF, ELSS mutual funds, and life insurance premiums can qualify under this section.

Opt for ELSS funds for tax saving and wealth creation.

Review Existing Expenses
Evaluate and minimise unnecessary expenditures.

Avoid loans for discretionary spending like vacations or gadgets.

Advantages of Using a Certified Financial Planner
A CFP can help you plan holistically and ensure you stick to your goals.

They provide tailored strategies, ensuring proper fund allocation and monitoring.

Invest through a Mutual Fund Distributor with CFP credentials to access professional advice.

Key Steps for Discipline
Automate investments through SIPs in mutual funds.

Track your monthly budget and investment progress regularly.

Avoid direct funds. Regular funds offer professional guidance and fund distributor support.

Tax Implications
For equity mutual funds, LTCG above Rs 1.25 lakh attracts 12.5% tax.

STCG on equity funds is taxed at 20%.

Debt fund gains are taxed as per your income slab. Consider these while investing.

Final Insights
You are in the right direction by seeking advice now. Build a solid foundation with savings, insurance, and investments. Take small steps toward financial independence.

Remain consistent with your investments, and review your financial plan annually.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Mayank

Mayank Chandel  |1940 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Nov 27, 2024

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Hello, i really have a serious issue regarding my studies as i am 24 yrs now and gave NEET 4times and i am still preparing for nxt year 2025 but at the back of my mind i am really tensed what if the same thing repeats in the neet 2025 also like paper leak and all, So now i am confused that should i take a full drop or partial drop. The mental pressure is really hitting hard and also its almost been 4years that i am still 12th pass only and my classmates have already completed their college and some are flight attendant and earning well, So this all things just hits so hard and also the hope in parents eyes as my father is already proud that i studied science so i would definitely become doctor. I wasted a lot of money in pg and coaching (fastrack) and this all things are hitting so hard that i really feel sad and have no ways to go.
Ans: Hi Bhima
I must say you have got perseverance & I appreciate your parent's trust in you. You have already appeared multiple times and you are going to appear again in 2025. By the time you will be 25 years old. They say there is no age to learn. But after getting admission you need another 10 years to practice as a qualified specialist. Make sure you take admission in the next session.

If higher cutoff & high fees of private colleges are an issue for you, then try exploring the MBBS abroad option, I can help with that too. Since NEXT is compulsory for Indian & Foreign graduates too it won't make a difference if you study in India or Abroad.

For time forget all the societal pressure and give your 100% and make your parents proud.

...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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