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Kirtan

Kirtan A Shah  |77 Answers  |Ask -

MF Expert, Financial Planner - Answered on Jul 11, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more
DK Question by DK on Jul 10, 2023Hindi
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Hello Kirtan, Which Mutual Funds are preferred for good returns?

Ans: Completely depends on your requirements, there Is no one answer to this question. Share more of you requirement & I might be able to help
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  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - May 06, 2024Hindi
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Hi could you please tell me in which mutual funds should i invest in and would give me good returns
Ans: Mutual fund selection depends on various factors such as your financial goals, risk tolerance, investment horizon, and asset allocation preferences. Here are some popular mutual fund categories you may consider for potentially good returns:

Large Cap Funds:
Large-cap funds invest in well-established companies with stable earnings and strong market presence.
These funds offer relatively lower risk compared to mid and small-cap funds and are suitable for investors with a conservative risk appetite.
Mid Cap and Small Cap Funds:
Mid and small-cap funds invest in companies with high growth potential but higher volatility.
These funds can generate higher returns over the long term but come with increased risk. They are suitable for investors with a higher risk tolerance and longer investment horizon.
Multi Cap or Flexi Cap Funds:
Multi-cap or flexi cap funds have the flexibility to invest across large, mid, and small-cap stocks based on market conditions.
These funds offer diversification benefits and can adapt to changing market dynamics, making them suitable for investors seeking balanced growth opportunities.
Sector Funds:
Sector funds focus on specific sectors or industries such as technology, healthcare, or banking.
These funds can provide opportunities for higher returns if the selected sector outperforms the broader market. However, they also carry higher sector-specific risks.
Index Funds and Exchange-Traded Funds (ETFs):
Index funds and ETFs replicate the performance of a specific market index such as the Nifty or Sensex.
These funds offer low expense ratios and are ideal for investors seeking passive investment options with diversified exposure to the equity market.
Debt Funds:
Debt funds invest in fixed-income securities such as government bonds, corporate bonds, and money market instruments.
These funds provide stability and regular income, making them suitable for conservative investors or those with short-term investment goals.
Before investing, assess your financial goals, risk tolerance, and investment horizon. Consider consulting with a Certified Financial Planner or mutual fund advisor to create a personalized investment plan tailored to your needs and objectives. Regularly review your portfolio and make adjustments as needed to stay on track towards achieving your financial goals.

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Ramalingam

Ramalingam Kalirajan  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

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Hi sir can you suggest the which mutual funds give high return
Ans: Choosing mutual funds solely based on past returns can be risky as past performance may not necessarily indicate future performance. Instead, it's essential to consider various factors such as investment objectives, risk tolerance, and investment horizon. Here are some tips to help you select mutual funds that may potentially offer higher returns:

Investment Goals: Determine your investment goals, whether it's wealth creation, retirement planning, or saving for a specific goal. Different goals may require different investment strategies and risk profiles.
Risk Tolerance: Assess your risk tolerance to determine how much volatility you can tolerate in your investment portfolio. Higher returns often come with higher risk, so it's crucial to align your investments with your risk tolerance.
Diversification: Invest in a diversified portfolio of mutual funds across various asset classes such as equity, debt, and international funds. Diversification can help reduce overall portfolio risk and enhance long-term returns.
Fund Manager's Track Record: Evaluate the track record and experience of the fund manager managing the mutual fund. A skilled and experienced fund manager can make a significant difference in fund performance over the long term.
Expense Ratio: Consider the expense ratio of the mutual fund, which represents the annual fees charged by the fund house for managing the fund. Lower expense ratios can translate to higher returns for investors over time.
Consistency of Performance: Look for mutual funds that have demonstrated consistent performance over different market cycles rather than just focusing on short-term returns. Consistency indicates the fund's ability to deliver returns across various market conditions.
Fund House Reputation: Choose mutual funds offered by reputable fund houses with a strong track record of managing investor funds responsibly and ethically.
Regular Monitoring: Regularly monitor the performance of your mutual fund investments and review your investment strategy periodically to ensure it remains aligned with your financial goals and risk tolerance.
Remember, there's no guarantee of high returns in mutual fund investments, and it's crucial to invest with a long-term perspective while diversifying your portfolio appropriately.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

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dear sir, i am new to investing, can u suggest few best mutual funds?
Ans: Investing in mutual funds can be a smart choice. As a beginner, selecting the right funds is crucial.

Understanding Mutual Fund Categories
Large Cap Funds
Stability and Reliability
These funds invest in big companies.
They are less risky and provide steady growth.
Flexi Cap Funds
Versatility and Balance
They invest across large, mid, and small caps.
This offers a balanced and flexible approach.
Mid Cap Funds
Growth Potential
These funds invest in medium-sized companies.
They have higher growth potential but also higher risk.
Small Cap Funds
High Risk, High Reward
These invest in small companies.
They can deliver high returns but are very volatile.
Benefits of Actively Managed Funds
Professional Management
Expertise at Work
Active funds are managed by experts.
They pick stocks with high potential.
Potential for Higher Returns
Beating the Market
Active funds aim to outperform the market.
This can lead to better returns than index funds.
Disadvantages of Index Funds
Lack of Flexibility
Index funds follow a set index.
They cannot adjust to market changes.
Benefits of Regular Funds
Guidance and Support
Investing through an MFD with CFP credentials provides guidance.
Regular funds offer support and advice, unlike direct funds.
Suggested Mutual Fund Types
Balanced Approach
Large Cap and Flexi Cap Mix
A mix of these funds provides stability and growth.
This is ideal for beginners.
Growth-Oriented Approach
Adding Mid Cap Funds
Include mid caps for higher growth potential.
This suits those willing to take some risk.
Aggressive Approach
Including Small Cap Funds
Add small caps for high returns.
This is for those comfortable with high risk.
Portfolio Allocation Tips
Diversify Wisely
Mix Different Types
Don’t put all your money in one type of fund.
Diversification reduces risk.
Regular Monitoring
Stay Informed
Keep track of your investments.
Adjust your portfolio as needed.
Avoid Over-Diversification
Focused Investments
Too many funds can dilute your returns.
Focus on a few high-performing funds.
Final Insights
Starting your investment journey with mutual funds is a wise decision. Understand the types of funds and their benefits. Opt for actively managed funds for better returns. Diversify wisely and monitor your investments regularly. This will help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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Latest Questions
Nayagam P

Nayagam P P  |5512 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
Hello sir I am getting cse in Chandigarh University and Jaypee noida 68 which is better and I have also applied for the thapar will I get computer engineering with 85 percentile in the jee mains and the 95.4 in boards
Ans: Aditya, With an 85 percentile in JEE Mains and 95.4% in 12th boards, securing Computer Engineering at Thapar Institute of Engineering and Technology (TIET) is unlikely, as the expected cutoff for outside Punjab candidates is around 94.47 percentile. However, branches like Electronics & Communication Engineering (ECE) or Electrical and Computer Engineering (EEC) may be attainable.
Collegedunia
Adarsh Barnwal
+2
Collegedunia
+2
Collegedunia
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Chandigarh University (CU) offers strong placement opportunities, with the highest domestic package reaching ?54.75 LPA and over 900 recruiters participating in the placement drive. Admission into CU's CSE program is highly probable given your scores.
Shiksha
+3
Shiksha
+3
PagalGuy
+3

At Jaypee Institute of Information Technology (JIIT), Noida, the closing rank for CSE is around 51,000 (approximately 95 percentile), making admission less likely with your current percentile.

Recommendation: Prioritize Chandigarh University for CSE due to its robust placement record and higher likelihood of admission. Consider TIET for alternative branches like ECE or EEC, and explore other institutions where your percentile aligns with the cutoff requirements. All the BEST for your Admission & Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Asked by Anonymous - May 30, 2025
Money
My Salary is 78000 per month and I have house rent 20500 and 17000 emi and 15000 monthly expenses other emis 15000 and iam unable to save please suggest
Ans: You are facing a very common challenge. Many earn well but struggle to save. The good part is that you are aware and looking for a solution. That’s the first important step.

Let me now give you a 360-degree analysis and practical advice to help you manage better.

 
 
1. Monthly Income and Expense Breakdown

Your salary is Rs. 78,000 per month.
 
 

House rent is Rs. 20,500.
 
 

EMI for one loan is Rs. 17,000.
 
 

Other EMIs total Rs. 15,000.
 
 

Monthly living expenses are Rs. 15,000.
 
 

After these, almost nothing is left.
 
 

There is no saving happening right now. But small adjustments can bring big changes.
 
 
2. Rent Expense Evaluation

Rent is the biggest cost. Rs. 20,500 is over 26% of your income.
 
 

Ideally, rent should not exceed 20% of income.
 
 

Check if slightly cheaper home is available.
 
 

A Rs. 3,000 to Rs. 4,000 saving in rent helps.
 
 

Shifting may feel hard. But it gives monthly relief.
 
 

Stay near public transport to reduce travel cost also.
 
 

Even small rent change brings long-term benefits.
 
 
3. EMI Consolidation Strategy

You have Rs. 32,000 total EMI every month.
 
 

This is over 40% of your income. That is too high.
 
 

Ideally, EMI should be under 30% of income.
 
 

Check if some loans are high-interest short-term loans.
 
 

If possible, combine all EMIs into one with lower interest.
 
 

Talk to your bank about loan consolidation options.
 
 

Even 2–3% interest reduction will help monthly cash flow.
 
 

Loan restructuring gives breathing space.
 
 
4. Monthly Expenses Assessment

You spend Rs. 15,000 monthly for all needs.
 
 

This looks reasonable, but break it down category-wise.
 
 

Note how much goes to groceries, mobile, subscriptions, fuel, etc.
 
 

Use a simple mobile app to track. Or a paper log.
 
 

You may find Rs. 1,000–2,000 saving opportunity easily.
 
 

Cancel unused services like OTT or apps.
 
 

Prepare weekly shopping list. Avoid impulse purchases.
 
 

Every rupee saved adds up.
 
 
5. Surrender Low-Return Insurance Policies (if any)

Do you hold any LIC, ULIP or endowment plan?
 
 

These plans mix insurance with investment. They give poor returns.
 
 

If held for more than 3 years, check surrender value.
 
 

If suitable, surrender and reduce premium load.
 
 

Take separate term insurance if not already done.
 
 

Reinvest in SIP when your cash flow improves.
 
 

This step will free up space in your budget.
 
 
6. Start Emergency Fund, Even Small

You may feel saving is impossible now.
 
 

But even Rs. 500–1000/month is a start.
 
 

Keep this money in a separate savings account.
 
 

Don’t touch unless it’s urgent.
 
 

Over time, it builds up to 3–6 months of expenses.
 
 

Emergency fund avoids fresh loans in future.
 
 

Even small savings matter. Start tiny, but stay regular.
 
 
7. Avoid New Loans or EMI Purchases

Say no to credit card EMIs or online EMIs.
 
 

These temptations disturb cash flow and cause stress.
 
 

If you need anything, plan and save first.
 
 

Delay buying until you have money.
 
 

EMI-free life feels peaceful and light.
 
 

Self-control today brings freedom tomorrow.
 
 
8. Health and Life Insurance Priority

Health emergency can break your finances.
 
 

Take a personal health insurance cover.
 
 

Group cover from employer is not always enough.
 
 

Also take a low-cost term life insurance.
 
 

Do not mix insurance with investments.
 
 

Term plan protects family. Premium is affordable.
 
 

Insurance is not optional. It’s your safety net.
 
 
9. Don’t Rely on Index Funds or Direct Mutual Funds

Some people suggest index funds or direct plans.
 
 

But these lack personalised support and active review.
 
 

Index funds don’t beat inflation in long term.
 
 

Direct funds don’t guide you in market changes.
 
 

Use actively managed mutual funds.
 
 

Invest through a Mutual Fund Distributor backed by a Certified Financial Planner.
 
 

Proper advice gives proper results.
 
 
10. Set a 3-Step Goal Plan

Step 1: Get control of monthly spending.
 
 

Step 2: Reduce EMIs or consolidate loans.
 
 

Step 3: Start small savings. Build emergency fund.
 
 

Once your cash flow improves, you can add SIPs.
 
 

Even Rs. 2,000/month SIP can build wealth slowly.
 
 

Long-term discipline matters more than short-term sacrifice.
 
 
11. Talk to a Certified Financial Planner

You don’t have to figure it all alone.
 
 

Certified Financial Planners can review your full profile.
 
 

They guide step-by-step based on your goals.
 
 

You get help with loan restructuring, budgeting and investing.
 
 

Regular plan reviews give better direction.
 
 

Guided support gives better results than guesswork.
 
 
Finally

Your situation is difficult but not unfixable. You are not alone. Many professionals earn well but have tight budgets. You are aware. That’s the key strength.

Now you need to make few lifestyle and financial changes. Nothing happens overnight. But over 6–12 months, you can turn things around.

Build better habits. Spend less than income. Don’t take more loans. Start even the smallest savings.

Once you’re stable, shift focus to long-term investments. Work with a Certified Financial Planner to guide you along the journey.

You’ll find peace, progress and purpose.

 
 

Best Regards,
 
K. Ramalingam, MBA, CFP
 
Chief Financial Planner,
 
www.holisticinvestment.in
 
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |5512 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Asked by Anonymous - May 29, 2025
Ramalingam

Ramalingam Kalirajan  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Money
Dear Sir, My age is 48 years and I have taken house loan of Rs. 25 Lacs two years back, EMI per month is 20K, my monthly salary is 75 k. I m investing Rs. 39 k per year in LIC, 50k in PPF per year and 12500 per month in SIP. After all this investment at the end of the month I barely able of save Rs. 15K. My son age is 5 years . Please suggest any changes and further future planning so that after retirement I have atleast 1 Cr.
Ans: You have shown good discipline in managing your finances. You have started early planning for your child and your retirement. That is very good. You also have a good monthly income and manageable loan EMI. But, a few adjustments will help build stronger wealth for retirement.

Let me now help you with a step-by-step review of your current financial structure and suggest better ways for future financial well-being.

 
 
1. Income and Expense Overview

Your monthly salary is Rs. 75,000.
 
 

You are paying Rs. 20,000 as home loan EMI.
 
 

You are investing Rs. 12,500 in SIPs every month.
 
 

You are investing Rs. 50,000 per year in PPF. That is around Rs. 4,167 per month.
 
 

You are paying Rs. 39,000 per year in LIC premium. That is around Rs. 3,250 per month.
 
 

After all expenses and investments, you save around Rs. 15,000 per month.
 
 

Your savings habit is strong. That is a great quality. But now, you need to optimise your savings and investments better.

 
 
2. Home Loan Management

Rs. 25 lakhs loan is manageable with your income.
 
 

Rs. 20,000 EMI is reasonable. But loan closure before retirement is important.
 
 

Aim to close the loan by 58 years. That will reduce stress after retirement.
 
 

If you receive any bonus or surplus, use that partly to reduce loan.
 
 

But do not stop SIPs or long-term investments for loan prepayment.
 
 

Balance is important.
 
 
3. LIC Policy Assessment

You are paying Rs. 39,000 yearly in LIC.
 
 

Most likely, this is a traditional endowment or money-back policy.
 
 

Such plans give very low returns. Usually below 5% per year.
 
 

Also, mixing insurance with investment is not ideal.
 
 

What to do now?

If the policy has completed more than 3 years, check surrender value.
 
 

If surrender is financially suitable, stop and reinvest in mutual funds.
 
 

Take pure term insurance separately if not already taken.
 
 

Term plans give large cover at low cost.
 
 

This one change will free up funds and give better returns.
 
 
4. PPF Investment Review

You are investing Rs. 50,000 per year in PPF.
 
 

PPF is safe and gives tax-free returns.
 
 

Current interest is around 7% to 7.5% per annum.
 
 

But this return may not beat inflation over 15–20 years.
 
 

Still, PPF is good for safety and diversification.
 
 

Continue PPF, but do not increase allocation too much.
 
 

Keep PPF limited. Focus more on higher return options.
 
 
5. SIP Investment Strategy

You are investing Rs. 12,500 per month in SIPs.
 
 

SIP in mutual funds is one of the best long-term tools.
 
 

Ensure you are investing in diversified, actively managed funds.
 
 

Actively managed funds give better returns over long term.
 
 

Avoid index funds. They copy the market and don’t beat inflation strongly.
 
 

Avoid direct funds unless you are experienced and review portfolios often.
 
 

Regular plans through a Mutual Fund Distributor with CFP support are better.
 
 

You get proper guidance, rebalancing, and tracking.
 
 

SIP should be your main engine for wealth building.
 
 
6. Retirement Goal Planning

You want Rs. 1 crore at retirement. That is a good starting goal.
 
 

At age 48 now, you have around 12 years left to build this.
 
 

You are already investing in SIP and PPF.
 
 

After surrendering LIC, redirect that amount into mutual funds.
 
 

Even your current Rs. 12,500 SIP + Rs. 3,250 LIC (if re-directed) = Rs. 15,750.
 
 

This amount, if invested in equity mutual funds, can create strong growth.
 
 

Also, your savings of Rs. 15,000/month is available.
 
 

Use part of this savings also to boost your SIP.
 
 

Retirement goal can be achieved. Just need disciplined investing and small adjustments.
 
 
7. Child’s Education Planning

Your son is 5 years old. You have time to build corpus.
 
 

Higher education expenses will start after 13–15 years.
 
 

Create a separate SIP for this goal. Do not mix with other investments.
 
 

Invest in diversified equity mutual funds for child goal.
 
 

Even Rs. 5,000–7,000/month SIP can build good corpus by then.
 
 

Review the portfolio every year with your Certified Financial Planner.
 
 

Do not depend on insurance plans or ULIPs for child goals.
 
 

They give poor returns and lock your money for long.
 
 

8. Insurance Protection Plan

At 48, insurance is critical. You are the family’s main earning member.
 
 

Take pure term insurance of minimum 10–12 times your yearly income.
 
 

That is Rs. 75,000 × 12 × 10 = Rs. 90 lakhs at least.
 
 

Premium will be low if taken soon.
 
 

Do not mix insurance with investment.
 
 

Also take health insurance for family if not already covered.
 
 

Company cover is not enough. Take personal health policy also.
 
 

9. Tax Planning and Optimisation

You are using LIC and PPF for tax benefits.
 
 

Also SIPs in ELSS funds can give tax benefits.
 
 

Consider ELSS only if you need 80C limit and can take 3-year lock-in.
 
 

Do not over-focus on tax saving. Wealth creation is more important.
 
 

If your 80C is already full, invest in non-tax saving mutual funds.
 
 

SIPs in equity mutual funds held for more than one year will attract LTCG.
 
 

LTCG above Rs. 1.25 lakh is taxed at 12.5%.
 
 

Keep track of capital gains yearly. Use your limit smartly.
 
 

10. Emergency Fund Management

Keep at least 4 to 6 months of expenses in emergency fund.
 
 

Use liquid mutual funds or savings account for this.
 
 

Do not invest emergency funds in PPF or SIP.
 
 

You should be able to withdraw anytime when needed.
 
 

Use your Rs. 15,000 monthly saving to slowly build this buffer.
 
 

11. Key Adjustments You Can Make Now

Surrender low-return LIC policy if suitable.
 
 

Redirect Rs. 3,250/month to mutual funds.
 
 

Increase SIP by at least Rs. 5,000 more monthly using your surplus.
 
 

Start a child education SIP separately.
 
 

Build emergency fund of Rs. 3 to 4 lakhs gradually.
 
 

Do not increase EMI. Prioritise investment and loan closure balance.
 
 

Finally

You have already done many things right. That is a great starting point.

Just fine-tune your investment structure now. Shift from low-return products to higher growth investments. Don’t stop your SIPs. Keep increasing SIP as income rises.

Work with a Certified Financial Planner. Review your plan every year. This is not a one-time setup. Financial planning is a regular process.

With the right steps, Rs. 1 crore for retirement is very much possible. Also, your child’s education will be secure. Just stay consistent and focused.

 
 
Best Regards,
 
K. Ramalingam, MBA, CFP,
 
Chief Financial Planner,
 
www.holisticinvestment.in
 
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |5512 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
I'm getting CSE Core at JSS University , CSE with Cyber Security at JIIT , CSE core in VIT Bhopal in category 2, and CSE Core in ABESIT. Which one should i choose?
Ans: VIT Bhopal’s Computer Science and Engineering (CSE) program offers a centralized placement system shared with VIT Vellore, attracting top recruiters like Microsoft, Amazon, TCS, and Infosys. While placements vary, 70–90% of CSE students secure roles, with internships at firms like Google, Adobe, and JP Morgan integrated into the curriculum. The campus features modern infrastructure, including advanced labs (IoT, AI/ML, Gaming Studio), Wi-Fi-enabled hostels, and a 600-seat auditorium, though sports facilities remain under development. Faculty members hold doctorate qualifications and emphasize industry-aligned learning, though some students report inconsistent academic support. The remote location (Bhopal-Indore highway) limits urban amenities but provides a serene, security-focused environment. Campus life includes tech clubs, hackathons, and festivals, though social activities are less vibrant compared to older VIT campuses. While CSE specializations (AI/ML, Cybersecurity) are well-structured, competition for core roles is intense, requiring students to maintain strong academic performance. Prospective students should weigh the centralized placement opportunities against the evolving campus infrastructure and location constraints. Prioritize JSS Mysore for balanced academics and placements, followed by JIIT Noida for specialization options. VIT Bhopal is ideal for brand-driven opportunities, while ABESIT serves as a pragmatic backup. All the BEST for your Admission & Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |8610 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Money
sir, am 26 year old and have some SIPs for Rs 1000 each. 1. QUANT SMALL CAP FUND DIRECT 2. NIPPON INDIA LARGE CAP DIRECT 3. MIRAE ASSEST ELSS TAX SAVER 4. UTI NIFTY 50 5. PARAG PARIKH FLEXI CAP 6. TATA MIDCAP GROWTH DIRECT 7. TATA SMALL CAP DIRECT my question is, these are good SIPs for next 10-15 years ? second is i want to invest 10000 more per month, please let me know which SIPs will be good for next 15 years. Thanks
Ans: At age 26, it is appreciable that you have started investing early.

It shows responsibility towards your future financial goals.

Your current SIPs are diversified across multiple categories.

But some of these SIPs may not be aligned well for long-term consistency.

Let us now review each one professionally.

1. Quant Small Cap Fund - Direct

Small caps can be volatile.

This fund is aggressive and high-risk.

Direct plans have no guidance or monitoring.

This may affect long-term performance.

Switching to a regular plan with a Certified Financial Planner is better.

This will ensure proper guidance and rebalancing.

2. Nippon India Large Cap - Direct

Large caps offer stability in a portfolio.

However, this fund’s long-term consistency is not very strong.

Also, direct plans lack expert monitoring.

A regular plan through a CFP ensures better handholding.

Tracking and performance review becomes easier.

3. Mirae Asset ELSS Tax Saver

This fund is decent for tax saving.

It is diversified and has shown fair returns.

However, regular review is still needed.

A regular plan helps with documentation and timely alerts.

Switching to regular mode can be beneficial in the long run.

4. UTI Nifty 50 - Direct

This is an index fund.

Index funds only mirror the market.

They do not aim to beat the market.

They lack human intelligence and flexibility.

They don’t perform well during corrections or sideways markets.

Actively managed funds have higher potential.

They can outperform in changing market situations.

Consider replacing this with a well-managed large cap fund.

In regular plan through CFP, you get guided fund selection.

5. Parag Parikh Flexi Cap

Flexi cap funds provide flexibility across market segments.

This fund has been popular recently.

But it has higher exposure to international stocks.

This brings currency risk and regulatory risks.

Also, it may overlap with other holdings.

You should regularly monitor for overlap and concentration.

Again, direct mode has no professional review.

6. Tata Midcap Growth - Direct

Midcaps are good for long-term.

But they need close tracking due to higher volatility.

A regular plan with expert guidance is ideal.

Direct mode will not help during market correction periods.

Switching to regular mode will ensure ongoing support.

7. Tata Small Cap - Direct

Small caps are risky in short to medium term.

This should not be your core holding.

Should be allocated only with close guidance.

Again, direct plans can go off-track without support.

If unmanaged, can bring portfolio imbalance.

Assessment of Direct Funds: Key Concerns

Direct funds may look cheaper in expense.

But they lack professional support and review.

There is no monitoring of changes in fund quality.

You may miss timely exits and rebalancing.

A Certified Financial Planner guides with logic and analysis.

They also help align your funds with your goals.

Regular plans have MFD support and rebalancing discipline.

They protect from behavioural mistakes during market volatility.

Overall, regular funds with expert guidance bring higher net value.

What Can Be Done with Your Existing SIPs?

You can consider the following changes:

Discontinue index fund (UTI Nifty 50) SIP.

   

Reduce exposure to direct small and midcap funds.

   

Switch from direct plans to regular plans via a Certified Financial Planner.

   

Ensure SIPs are part of a professionally constructed portfolio.

   

Ensure proper asset allocation, fund category balancing and tax efficiency.

   

New SIP of Rs 10,000 per Month – Suggestions

For your new Rs 10,000 monthly SIP, here is a 360-degree plan:

Allocate across diversified categories.

   

Ensure each fund has low overlap and different market focus.

   

Invest in 3 to 4 funds max.

   

All in regular mode with CFP-led support.

   

Avoid index funds, as they only match market returns.

   

Go for actively managed funds with proven history.

   

Include large-cap, mid-cap and flexi-cap mix.

   

Monitor quarterly with your Certified Financial Planner.

   

Additional Guidance for 15-Year Wealth Building

At 26, your time horizon is excellent.

But long-term wealth creation needs more than just SIPs.

It needs strategy and discipline.

Below are key steps for a full-circle approach:

Set clear financial goals: Home, car, retirement, child education etc.

   

Link SIPs to each goal separately.

   

Keep emergency fund in place (6 months expenses).

   

Get sufficient life and health insurance (pure protection plans).

   

Avoid investment-cum-insurance products.

   

They give low returns and poor insurance.

   

Do not mix insurance with investment.

   

Track your SIP performance annually.

   

Rebalance if some funds underperform.

   

Maintain asset allocation: Equity, Debt and Liquid.

   

Avoid emotional reactions during market dips.

   

Stay invested with guidance from your CFP.

   

Be aware of taxation rules on equity and debt funds.

   

LTCG on equity above Rs 1.25 lakh is taxed at 12.5%.

   

STCG on equity is taxed at 20%.

   

Debt fund gains are taxed as per income slab.

   

Regular plan MFD and CFP helps with all tax planning.

   

What Not to Do in the Next 15 Years

Don’t invest in index funds.

   

They lack active strategy.

   

Don’t choose funds by past returns only.

   

Don’t use direct funds without financial expertise.

   

Don’t invest in real estate for returns.

   

Don’t invest in annuity products for retirement.

   

Don’t mix investment and insurance.

   

Don’t make decisions based on short-term news or noise.

   

Don’t stop SIPs during market corrections.

   

Role of a Certified Financial Planner

A Certified Financial Planner helps you:

Set goals based on life stages.

   

Create custom SIP and lump sum plans.

   

Select the best active funds for your goals.

   

Rebalance annually to stay on track.

   

Plan taxes as per latest rules.

   

Protect wealth with right insurances.

   

Build retirement with strategic planning.

   

Create a total financial blueprint for life.

   

Keep emotions out of financial decisions.

   

Final Insights

You have taken a great step by starting early.

But choosing the right funds is key.

More important is monitoring them regularly.

Direct plans lack this important support.

Switching to regular plans under CFP brings value.

Also, add Rs 10,000 new SIP with proper strategy.

Don’t follow trends.

Stay committed and review annually.

Avoid overlapping funds and unnecessary risks.

Have a complete financial roadmap in place.

You are building your future.

Make each rupee work with expert guidance.

This 360-degree approach will lead to better outcomes.

You will be financially secure and confident.

Take the next steps with clarity and care.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...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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