Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ulhas

Ulhas Joshi  |266 Answers  |Ask -

Mutual Fund Expert - Answered on Jun 21, 2024

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
Ravi Question by Ravi on Jun 19, 2024Hindi
Listen
Money

Hello sir... This is Ravi kumar. Age 34. Now i have 1 lakh Rupees. Now i want invest in mutual funds for my retirement. The question is where to invest ? Only one index fund or 50% in index fund , 25% in mid cap and remaining 25% in Small cap?? Or in your view diversification? So Please give me good suggestion?

Ans: Hello Ravi & thanks for writing to me. As your time horizon is long & goal is retirement, equity is suitable for you.

You can consider investing the 20% of your corpus in a large & mid cap scheme (these are different from large schemes), with 40% in a small cap and 40% in a mid cap fund.

With your age & time horizon, having a large exposure to mid & small cap funds has the potential to generate higher returns.
Asked on - Jun 21, 2024 | Not Answered yet
Thnq fr reply
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.

You may like to see similar questions and answers below

Dev

Dev Ashish  |48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Jun 13, 2023

Ramalingam

Ramalingam Kalirajan  |5083 Answers  |Ask -

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

Listen
Money
I am N.N. 53 yrs old expected to invest Rs. 44 L in (35% growth in last 3 years) & Rs. 80 L in MF (growth approx 18% in last 2 yrs.), How much should I invest in Mutual Funds. Please guide me where should I invest this 9L
Ans: Strategic Allocation of Funds for Optimal Growth
N.N., your commitment to investing wisely to secure your financial future is commendable. Let's explore the best strategy for allocating your funds to maximize growth potential and achieve your long-term financial goals.

Evaluating Investment Amounts and Growth Rates
With Rs. 44 lakhs experiencing a growth rate of 35% over the last 3 years and Rs. 80 lakhs in mutual funds witnessing approximately 18% growth over the last 2 years, you have a solid foundation for further investment.

Determining Allocation for Mutual Funds
To determine how much to invest in mutual funds, consider your overall financial goals, risk tolerance, and investment horizon. Since mutual funds offer diversified portfolios managed by professionals, they are an excellent choice for long-term wealth accumulation.

Optimizing Mutual Fund Investment
Given the growth rates of your existing investments, allocating a portion of Rs. 9 lakhs to mutual funds can further enhance your portfolio's growth potential. Consider the following strategies for optimal allocation:

Diversification: Invest across different types of mutual funds such as large-cap, mid-cap, and small-cap to spread risk and capture opportunities across various market segments.

Risk Management: Assess your risk tolerance and investment horizon to select funds that align with your financial objectives. Conservative investors may prefer large-cap funds, while aggressive investors may opt for mid-cap and small-cap funds for higher growth potential.

Regular Review: Periodically review your mutual fund portfolio to ensure it remains aligned with your financial goals and market conditions. Rebalance your portfolio if necessary to maintain the desired asset allocation.

Identifying Suitable Investment Options
Consulting with a Certified Financial Planner can provide personalized recommendations based on your specific financial situation and goals. They can help identify suitable mutual fund options and create a customized investment plan tailored to your needs.

Conclusion
By strategically allocating a portion of your funds to mutual funds, you can further diversify your investment portfolio and capitalize on growth opportunities in the market. With careful planning and guidance from a Certified Financial Planner, you can navigate the investment landscape effectively and work towards achieving your long-term financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |5083 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - Apr 28, 2024Hindi
Listen
Money
Hello Ulhas sir, I am 25 years old. Due to personal reasons I invest in only 100% equity mutual funds that do not invest in banking stocks. Currently I am investing in 3 mutual funds: Nippon India Power & Infra direct growth, Taurus Ethical fund and Tata Ethical fund. I have set Tata ethical fund aside as a retirement fund. Can you suggest where can I invest more (sectoral mfs or gold etf etc.)to correctly diversify my portfolio.
Ans: Diversifying Your Portfolio: A Shariah-Compliant Approach
It's great to see your commitment to ethical investing and aligning your portfolio with your values. Let's explore how you can further diversify your investments while adhering to Shariah principles.


Your dedication to ethical investing is admirable and reflects a strong commitment to your principles.

Assessing Portfolio Composition
Evaluate your current portfolio composition and identify areas where additional diversification can enhance risk-adjusted returns.

Exploring Shariah-Compliant Investment Options
Consider exploring Shariah-compliant investment options beyond equity mutual funds to diversify your portfolio effectively.

Sectoral Mutual Funds
Explore sectoral mutual funds that align with Shariah principles and invest in sectors such as healthcare, technology, or consumer goods, providing exposure to diverse industries.

Shariah-Compliant Gold ETF
Consider investing in Shariah-compliant Gold Exchange Traded Funds (ETFs) to add a hedge against market volatility and enhance portfolio diversification.

Real Assets
Consider allocating a portion of your portfolio to real assets such as real estate investment trusts (REITs) or infrastructure funds, which can provide inflation protection and long-term growth potential.

Monitoring Portfolio Performance
Regularly monitor the performance of your portfolio and make adjustments as needed to maintain diversification and align with your long-term financial goals.

Consistent Review and Rebalancing
Review your investment portfolio periodically and rebalance it to ensure it remains aligned with your risk tolerance and investment objectives.

Final Thoughts
By diversifying your portfolio with Shariah-compliant investment options such as sectoral mutual funds, gold ETFs, and Islamic bond funds, you can enhance risk-adjusted returns while adhering to your ethical principles.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Dr Nagarajan J S K

Dr Nagarajan J S K   |39 Answers  |Ask -

Health Science and Pharmaceutical Careers Expert - Answered on Jul 19, 2024

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x