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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 26, 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

Question by Rajneesh on Nov 07, 2023Hindi

Hello Nikunj, hope you’re doing good. I have the following MFs running (except SBI, all are barely 6 months old) for which I want your advice and guidance on change of scheme or reshuffling of amount or whatever. SBI Contra: 15k per month SBI Small Cap: 20k per month SBI Equity Hybrid: 5k per month Quant Small Cap: 25k per month Quant Mid Cap: 10k per month Quant Flexi Cap: 8k per month Tata Digital India Fund: 12k per month Nippon India Growth: 5k per month Nippon India Nifty Smallcap 250: 2.5k per month Parag Parikh Flexi Cap: 7k per month Motilal Oswal Nasdaq 100: 5k per month ICICI Technology: 5k per month ICICI Transportation & Logistics Fund: 2.5 k per month HDFC Transportation & Logistics Fund: 5k per month UTI Flexi Cap: 5k per month Total investment: 1.34 Lac per month My goal is to create a corpus of about 3 cr in next 7 yrs. please suggest if I’m on the right track. Recently I did the portfolio balancing and terminated Axis MF schemes as they were jot yielding good returns. Btw, my existing investments in MFs have already created a corpus of 30L.

Ans: Current Portfolio Assessment:

Your portfolio consists of a diverse range of mutual funds across various categories like contra, small cap, hybrid, flexi cap, and sectoral funds. It's evident that you've taken a proactive approach towards wealth creation by investing in a broad spectrum of funds.

Investment Allocation:

SBI Contra, SBI Small Cap, SBI Equity Hybrid:

SBI Mutual Funds are known for their reliability and consistent performance. However, having a significant allocation towards SBI funds might lead to overexposure to a single fund house.
Consider diversifying your investments across other reputed fund houses to reduce concentration risk.
Quant Small Cap, Quant Mid Cap, Quant Flexi Cap:

While small and mid-cap funds have the potential for higher returns, they also come with increased volatility and risk.
Review the performance of Quant funds regularly and consider rebalancing if necessary to maintain the desired risk-return profile.
Sectoral Funds (Tata Digital India, ICICI Technology, ICICI Transportation & Logistics, HDFC Transportation & Logistics):

Sectoral funds, while offering opportunities for growth, are inherently risky due to their focused exposure.
Monitor the performance of these funds closely and be prepared to reallocate if there are significant changes in sectoral outlooks or market conditions.
Nippon India Growth, Nippon India Nifty Smallcap 250, Parag Parikh Flexi Cap, Motilal Oswal Nasdaq 100, UTI Flexi Cap:

These funds provide diversification across different market segments and investment themes.
Regularly review the performance of each fund and assess whether they continue to align with your investment goals and risk tolerance.
Future Strategy:

Risk Management:

With a goal of creating a corpus of Rs. 3 crores in the next 7 years, it's essential to strike a balance between growth and risk mitigation.
Consider gradually reducing exposure to high-risk funds and reallocating towards more stable options as you approach your goal timeline.
Regular Review:

Periodically review your portfolio performance and make adjustments as needed to ensure it remains aligned with your financial objectives.
Stay informed about market trends, economic developments, and regulatory changes that may impact your investments.
In conclusion, your investment approach showcases a commitment to wealth creation, but it's crucial to regularly monitor and adjust your portfolio to adapt to changing market conditions and financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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