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Is my SIP portfolio right for me? 35-year-old IT professional seeks advice.

Ramalingam

Ramalingam Kalirajan  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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 - Feb 18, 2025Hindi
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Hello Ramalingam, Could you provide your feedback on my active SIPs? Axis Bluechip Fund Direct Plan Growth - 5k DSP Global Innovation FoF Direct Growth - 10k ICICI Prudential Tech Direct Growth - 8k Axis Small Cap Fund Direct Growth - 10k Mirae Asset Large & Midcap Direct Growth - 2.5k PGIM India Midcap Oppurtunites Fund Direct Growth - 6k Parag Parikh Flexi Cap Direct Growth - 15k Nippon India Pharma Fund Direct Growth - 10k Quant Small Cap Direct Plan Growth - 10k Axis ELSS Tax Saver Regular Growth - 2.5k Kotak Emerging Equity Fund Regular - 4.3k Mirae Asset Large & Midcap Direct Regular - 2.5k Kotak Small Cap Fund Growth Regular - 2.5k

Ans: You have a well-diversified SIP portfolio, but some improvements can be made. Below is a detailed review of your portfolio with suggestions.

Portfolio Diversification
Your portfolio covers large-cap, mid-cap, small-cap, flexi-cap, pharma, technology, and international exposure.

There are too many funds in the portfolio, leading to duplication.

A more focused approach can improve returns while maintaining diversification.

Large-Cap Exposure
Your portfolio has a large-cap fund. Large-cap funds provide stability.

Consider keeping only one large-cap fund instead of multiple overlapping ones.

Large-cap funds deliver steady growth but may not beat inflation significantly.

Mid-Cap and Small-Cap Exposure
You have multiple mid-cap and small-cap funds. These funds offer high growth potential.

Overexposure to small-cap and mid-cap can increase risk.

Reducing the number of mid-cap and small-cap funds will avoid redundancy.

Flexi-Cap and Multi-Cap Exposure
Flexi-cap funds allow fund managers to invest across market caps.

One flexi-cap fund is sufficient. Multiple flexi-cap funds lead to overlap.

A well-managed flexi-cap fund can balance risk and returns.

Sectoral and Thematic Funds
Pharma and technology funds are sectoral funds. They perform well in specific market cycles.

Sectoral funds are high-risk and should not exceed 10-15% of the total portfolio.

Consider reducing exposure to sectoral funds unless you have a long-term view.

International Fund Exposure
Global exposure adds diversification. However, international markets have different risks.

Foreign exchange rates and geopolitical risks can affect returns.

A single international fund is enough for diversification.

Tax-Saving ELSS Fund
ELSS funds help save tax under Section 80C.

ELSS has a lock-in period of three years.

One ELSS fund is enough instead of multiple tax-saving funds.

Direct vs Regular Funds
You have invested in direct funds. Direct funds require active tracking.

Regular funds provide guidance from an MFD with CFP credentials.

If you are not monitoring regularly, consider switching to regular funds.

Overlap Analysis
Some funds have similar stocks, leading to portfolio overlap.

Reducing overlapping funds can make your portfolio more efficient.

A focused approach improves returns without excessive diversification.

Debt Fund Allocation
There is no debt fund in the portfolio.

Debt funds provide stability and liquidity.

A small allocation to a short-duration debt fund can help manage short-term goals.

Portfolio Simplification Suggestions
Reduce the number of overlapping funds.

Keep one large-cap, one mid-cap, one small-cap, one flexi-cap, and one sectoral fund.

Limit international exposure to a single fund.

Maintain tax-saving investments only if needed under Section 80C.

Final Insights
Your portfolio is well-structured but has too many funds.

Streamlining the portfolio will improve efficiency and returns.

Reduce sectoral and mid/small-cap exposure for better risk management.

Add a debt fund for stability and liquidity.

Monitor the portfolio regularly or consult a Certified Financial Planner for guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Hi I have following SIPs. Can you suggest whether they are good, bad or ugly and suggest changes if any. Quant small cap direct growth-10000 Canara robecco small cap DG- 10000 PGIM india mid cap Opp DG-10000 SBI contra Direct plan growth-10000 Parag parik flexi cap DG-10000 Quant infrastructure DG-10000 ICICI prudential tech fund-10000 Tata digital India regular plan-10000 Aditya birla sun life digital India regular plan -10000 - I hv started investing in last 6months and aim is to make atleast 3cr by next 10yrs. I hv certain other investments in SIPs, equity and PF (about 50000 per month) Thank you
Ans: Your portfolio seems well-diversified across different categories and themes, which is a good approach. However, there are a few considerations to keep in mind:

Small Cap Exposure: Having significant exposure to small-cap funds like Quant Small Cap and Canara Robeco Small Cap can add volatility to your portfolio. While they have the potential for high returns, they also come with higher risk. Ensure you have a high-risk tolerance and a long-term investment horizon if you intend to stay invested in these funds.
Sectoral and Theme Funds: Funds like ICICI Prudential Tech Fund, Tata Digital India, and Aditya Birla Sun Life Digital India focus on specific sectors/themes. While these can offer opportunities for growth, they also carry concentration risk. Monitor these funds closely and be prepared for volatility, considering the dynamic nature of sectoral investments.
Mid Cap and Flexi Cap: PGIM India Mid Cap Opp and Parag Parik Flexi Cap provide exposure to mid-cap and flexible-cap segments, which can complement your small-cap investments. Ensure you review the performance and portfolio composition of these funds regularly to confirm they align with your investment objectives.
Regular Review: Given your long-term goal of reaching 3 crores in 10 years, regularly review your portfolio's performance and make adjustments as necessary. Consider rebalancing periodically to maintain your desired asset allocation and risk level.
Risk Management: Since you have a significant amount invested across various funds, ensure you have an adequate emergency fund and insurance coverage to mitigate any unforeseen risks.
Overall, your portfolio appears to have the potential to achieve your long-term financial goals, but it's essential to monitor and adjust it periodically based on your changing financial situation and market conditions. Consider consulting with a financial advisor for personalized advice tailored to your specific needs and objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 08, 2024Hindi
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Hi Team, I am 35 and have below SIPs. Please review them and let me know if i have to make any changes. Parag Pareikg flexi cap fund - 10000 Motilal Oswal S&P 500 index fund - 2500 Quant Small Cap Fund- 5000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Banking & Financial Services Fund- 2500. Focus is to continue SIP for longterm
Ans: It's great to see your commitment to investing for the long term. Let's review your current SIP portfolio and discuss if any adjustments are needed to align with your goals.

Evaluating Your SIPs
Your portfolio consists of a mix of equity funds focusing on different market segments. Here's a brief overview of each fund:

Parag Parikh Flexi Cap Fund (Rs. 10,000): Known for its flexible investment approach across market caps and sectors, providing diversification and potential for long-term growth.

Motilal Oswal S&P 500 Index Fund (Rs. 2,500): Provides exposure to the top 500 companies in the US stock market, offering diversification and growth potential in the world's largest economy.

Quant Small Cap Fund (Rs. 5,000): Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

PGIM India Mid Cap Opportunities Fund (Rs. 5,000): Focuses on mid-cap companies with strong growth prospects, offering potential for capital appreciation over the long term.

SBI Banking & Financial Services Fund (Rs. 2,500): Invests in companies operating in the banking and financial services sector, benefiting from the growth potential of the Indian financial industry.

Recommendations for Optimization
Your portfolio is well-diversified across different market segments, which is essential for long-term growth. However, here are a few suggestions to consider for further optimization:

Monitor Performance: Regularly review the performance of each fund and assess whether they continue to meet your investment objectives. Consider replacing underperforming funds or reallocating assets based on changing market conditions and your financial goals.

Assess Risk Tolerance: Ensure that your portfolio's risk level aligns with your risk tolerance and investment horizon. While small-cap and mid-cap funds offer higher growth potential, they also come with increased volatility. Make sure you're comfortable with the level of risk in your portfolio.

Consider International Diversification: While the Motilal Oswal S&P 500 Index Fund provides exposure to the US stock market, you may consider adding more international diversification to your portfolio. Explore options such as global equity funds or international index funds to broaden your investment horizon.

Review Sectoral Exposure: Given your investment in the SBI Banking & Financial Services Fund, be mindful of overexposure to a single sector. Monitor the fund's performance and consider diversifying across sectors to reduce concentration risk.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term growth. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 28, 2024

Asked by Anonymous - Dec 27, 2024Hindi
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Hi Team, I am 30 and have below SIPs. Please review them and let me know if i have to make any changes. Hdfc large & Mid cap fund - 5000 Motilal Oswal Mid cap fund - 5000 Kotak infrastructure and eco fund - 2000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Contra -1500 Motila Oswal business cycle fund-3000 Focus is to continue SIP for longterm
Ans: Your portfolio reflects a proactive approach to wealth creation. Each fund serves a distinct purpose. Let's assess and optimise your investments for long-term growth.

Strengths of Your Current Portfolio
Diverse Investment Strategy: Your funds cover multiple segments like large-cap, mid-cap, and thematic investments.

Long-Term Focus: A consistent SIP approach aligns with compounding benefits and market cycles.

Mid-Cap Exposure: Allocating significant SIPs to mid-cap funds positions your portfolio for growth.

Inclusion of Thematic Funds: Thematic funds add sectoral focus, offering opportunities in specific growth areas.

Areas for Improvement
Concentration in Mid-Cap Funds: A high allocation to mid-cap funds can increase volatility. Diversification is key.

Overlapping Thematic Focus: Funds with sectoral or cyclical focus may overlap in strategy.

Balance Between Growth and Stability: Adding more stability-focused funds can protect the portfolio in downturns.

Fund-Specific Observations
Large and Mid-Cap Fund
This fund balances growth and stability.

Retain this allocation for consistent returns and risk management.

Mid-Cap Funds
Significant allocation to mid-cap funds is growth-oriented.

Review performance and overlap to avoid redundancy.

Consider reallocating some amount to flexi-cap funds for diversification.

Thematic Infrastructure Fund
Sector-focused funds can be volatile and dependent on market cycles.

Limit thematic exposure to 10% of your overall portfolio.

Monitor this fund closely to ensure it aligns with your goals.

Contra and Business Cycle Funds
Both funds are contrarian and cyclical in nature.

Overlapping strategies may lead to concentration risk.

Retain one fund and reallocate the other to a balanced or flexi-cap fund.

Recommendations for Portfolio Optimisation
Enhance Diversification
Add a balanced allocation to large-cap or flexi-cap funds for stability.

Diversification reduces risk and enhances long-term returns.

Monitor and Evaluate Performance
Regularly review fund performance to ensure alignment with goals.

Replace underperforming funds without hesitation.

Adjust Thematic and Sectoral Exposure
Limit thematic funds to a smaller portion of your portfolio.

Sector-focused funds are cyclical and require active monitoring.

Tax-Efficiency
Long-term equity fund gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term gains attract a 20% tax.

Consider tax efficiency while planning redemptions.

Importance of Regular Funds
Direct funds lack personalised guidance and portfolio tracking.

Investing through a Certified Financial Planner ensures regular reviews and professional advice.

Regular funds offer value-added services and align with long-term goals.

Final Insights
Your portfolio is well-structured for long-term growth but needs refinement.

Reduce concentration in mid-cap and thematic funds for better risk management.

Increase exposure to diversified and balanced funds for stability.

Seek professional guidance to optimise performance and adapt to market trends.

Your disciplined SIP approach will reward you over time. Stay consistent and review periodically.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4838 Answers  |Ask -

Career Counsellor - Answered on May 23, 2025

Career
Respected TEAM ADVISORS, My Son secured School Topper in IGCSE [ Cambridge Curriculum ] Grade 12 Exam. Biology 90, Chemistry 90, Physics 88 and Mathematics 89. Similarly IGCSE Grade 10 and Grade 11 also School Topper. In VIT Entrance, he comes under Phase 3 and Counselling this week. He has also applied SSN Engineering College. He will appear for SSN Entrance Exam. If it is an IGCSE [ Cambridge ] Syllabus though he is the School Topper, My Son Cut Off is 188% only. Shall My Son get B. Tech. [ CSE ]., in SSN [ OR ] VIT., on Merit Basis under IGCSE Marks. If any Priority given to IGCSE [ Cambridge ] curriculum by SSN Chennai [ OR ] VIT., Chennai.
Ans: Sankaran Sir, TN State Board Students have more advantage of securing seats through TNEA counselling, compared to other Board Students (even CBSE). Your son’s excellent IGCSE scores and topper status are commendable, but admission to B.Tech CSE at VIT Chennai or SSN College depends mainly on entrance exam ranks. For VIT Chennai, the expected cutoff rank for Category 4 (including IGCSE students) in CSE is around 21,900 to 22,900 in 2025. Admission is based on VITEEE rank, not board marks alone, and no special priority is given solely for IGCSE curriculum. At SSN, admission considers both the entrance exam score and board marks; being an IGCSE topper is advantageous but must be supported by a strong SSN entrance exam result. Both institutes emphasize merit through entrance performance. Your son should focus on securing a good rank in VITEEE or SSN entrance to maximize admission chances in CSE. As more back-ups, it is advisable to apply also to Sastra | Sathyabhama | Karunya Universities. All the best for your son's admissions and a bright future!

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Nayagam P

Nayagam P P  |4838 Answers  |Ask -

Career Counsellor - Answered on May 23, 2025

Career
Sir, i have CRL 133628 in jee main, General Category Delhi domicile please suggest me best for Cse
Ans: Jindal, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced Results – A Step-by-Step Guide

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

However, have JAC/CSAB/All Private Engineering Colleges in and around Delhi as back-ups instead of relying only on JEE/JoSAA.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions and a bright future!

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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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