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

Ramalingam Kalirajan  |6266 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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
Sanjeev Question by Sanjeev on Sep 26, 2023Hindi
Listen
Money

Hello Sir This Sanjeev Kumar, From Himachal Pradesh. Below are my Investments. Sir I would like to known that Is my portfolio good enough to get better return. I want to accumulate 20 to 30 lakhs in next 10 to 12 years from below investment. Also suggest me that whether, below MF are good enough, or reshuffling is required. 1. Aditya Birla Sun life Multi Cap Fund-regular growth --- Rs 1000/- 2. Invesco India Flexi Cap Fund-regular plan growth ---- Rs 1000/- 3. Invesco Multicap fund-Regular growth --- Rs 1000/- 4. Kotak Emerging Equity fund growth ---- Rs 1000/- 5. Kotak tax saver fund growth (ELSS) ---Rs 500 /- 6. Kotak multi cap fund --------- Rs 1000/- 7. Union long term equity fund growth regular plan ----- Rs 1500/- 8. Nippon India Flexi cap fund ----------- Rs 1000/- 9. LIC ------------------ 51000 /- (Annually). 10. PPF -------------- 1.5 lac (Annually, Since 2015). 11. NPS ------------ 50000 /- (Annually).

Ans: Hello Sanjeev,

Your investment portfolio appears to be diversified with a mix of mutual funds, insurance, and other instruments. Diversification is key to managing risk and potentially achieving better returns over the long term. However, it's essential to periodically review and rebalance your portfolio to ensure it aligns with your financial goals and risk tolerance.

Consider assessing the performance of each mutual fund regularly and comparing it with benchmark indices and peer funds. If any fund consistently underperforms or if your investment goals change, you may consider reshuffling your investments.

Additionally, continue contributing to instruments like PPF and NPS, as they offer tax benefits and long-term wealth accumulation opportunities. Remember, investing is a journey, and staying disciplined while focusing on your goals will increase your chances of achieving financial success.
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |6266 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 2024

Listen
Money
Dear Sir, I Sanjeev Kumar, aged 42 years investing in following investment, I would like to have your opinion that are these saving quite enough to accumulate to fund value of 70 to 80 lac in next 10 to 12 years. 1. Aditya birla multicap fund --- Rs 1000 PM (SIP) 2. Invesco flexi cap fund -------- Rs 1000 PM (SIP) 3. Invesco india multi cap fund ----- Rs 1000 PM (SIP) 4. Kotak Multicap fund ------ Rs 1000 PM (SIP) 5. Kotak emerging equity fund ----- Rs 1000 PM (SIP) 6. Kotak tax saver fund ------- Rs 500 PM (SIP) 7. Nippon multicap fund -------- Rs 1000 PM (SIP) 8. Union Tax saver fund --------- Rs 1500 PM (SIP) 9. LIC -------------------------- 52000 (annually) 10. PPF ----------------------- 1.5 lac (annually) 11. NPS --------------------- 5000 Rs (annually) I would also like to hear from you, that whether reshuffling is required in my portfolio. Eager to hear from you soon.
Ans: Review of your Investment Portfolio
Strengths:

Regular Savings: You're consistently contributing through SIPs in various mutual funds, PPF, NPS, and LIC, which is a positive aspect for long-term wealth creation.
Diversification: You have a good mix of multi-cap and flexi-cap funds, along with tax-saving options (ELSS) through SIPs. This provides some diversification across market capitalizations and offers tax benefits.
Areas for Potential Review:

Number of Funds: Having nine SIPs across different mutual funds can be complex to manage and rebalance. Consider consolidating some funds with similar investment styles. Three to five well-chosen funds can provide sufficient diversification.
Equity Allocation: While you have some tax-saving SIPs, the overall weightage towards equity might be on the lower side for a 10-12 year investment horizon, considering your target corpus of Rs. 70-80 lakh.
LIC Policy: LIC policies offer life insurance and savings, but their returns might be lower than pure investment options. Analyze the returns of your LIC policy and consider if it aligns with your goals. Speak to your advisor for potential alternatives.
Reshuffling Considerations (Consult a Financial Advisor for Specific Recommendations):

Consolidation: Consider merging some of your multi-cap funds with similar investment styles. This will simplify your portfolio and reduce management complexity.
Increase Equity Allocation: Discuss with a financial advisor about potentially increasing your SIP contributions in existing equity funds or starting a new SIP in a large-cap or mid-cap fund to potentially boost your equity exposure and align it better with your investment horizon.
Here are some additional tips:

Emergency Fund: Maintain an emergency fund with 3-6 months of living expenses to cover unexpected costs. Park this in a liquid instrument like a savings account or short-term debt fund.
Review and Rebalance: Regularly review your portfolio performance (at least annually) and rebalance if needed to maintain your desired asset allocation.
Goal-based Investment: Consider aligning specific investments with your retirement goals. Equity funds can be suitable for long-term goals like retirement, while debt funds can be good for shorter-term goals.
Reaching your target corpus of Rs. 70-80 lakh in 10-12 years might require:

Potentially increasing your SIP contributions in existing equity funds.
Analyzing and potentially adjusting your LIC policy if the returns don't align with your goals.
Remember:

This is a general overview, and consulting a Certified Financial Planner (CFP) is highly recommended for a personalized plan considering your specific risk tolerance, financial goals, and investment time horizon.
Disciplined investment and staying invested for the long term are crucial for achieving your financial goals.
By strategically reviewing your portfolio, potentially consolidating funds, and potentially increasing your equity allocation, you can improve your chances of reaching your desired corpus.

..Read more

Ramalingam

Ramalingam Kalirajan  |6266 Answers  |Ask -

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

Listen
Money
Hi Experts! I am 36 years old, married 1 year ago. I have Rs.223000 invested in Mutual Fund. Per Month 10k in Parag Parikh Flexi Cap Fund, Rs.1250 in DSP ELSS Tax Saver Fund Direct Growth, Rs.1000 in Kotak ELSS Tax Saver Fund Direct Growth, PGIM India Tax Saver Fund Direct Growth, Rs.2000 in Nippon India Small Cap Fund Direct Growth, Rs.2000 in Quant Multi Asset Fund Direct Growth and Rs.2000 in ICICI Prudential BHARAT 22 FDF Direct Growth. Apart from this I pay Rs.10k/month in PPF and 1.5 lac/year in SBI Life Insurance. Please let me know if this is a good portfolio or should I modify anything in this. What kind of Future return I will be expecting here with this portfolio.
Ans: Congratulations on your recent marriage and your proactive approach towards financial planning. It's evident that you're committed to securing your financial future.

Your investment portfolio reflects a diversified approach, which is a positive sign. Diversification helps spread risk and can enhance long-term returns. Let's delve into your portfolio to assess its effectiveness and potential for future returns.

Investing in Parag Parikh Flexi Cap Fund offers exposure to a diversified portfolio across various sectors and market capitalizations. This fund's flexible investment strategy allows it to capitalize on emerging opportunities, potentially leading to attractive returns over time.

ELSS Tax Saver Funds like DSP and Kotak offer tax benefits under Section 80C of the Income Tax Act while providing exposure to equities. These funds have a lock-in period of three years, aligning with your long-term investment horizon.

Nippon India Small Cap Fund and Quant Multi Asset Fund offer exposure to smaller companies and multiple asset classes, respectively. Small-cap funds have the potential for higher growth but come with increased volatility. Ensure they align with your risk tolerance.

ICICI Prudential BHARAT 22 FDF provides exposure to a diversified basket of public sector enterprises and select private sector companies. This fund can add stability to your portfolio while offering growth potential.

Your investments in PPF and SBI Life Insurance contribute to your overall financial security and tax planning. PPF offers stable returns with tax benefits, while life insurance provides protection for your family's future financial needs.

Considering your age and investment horizon, this portfolio has the potential to generate attractive returns over the long term. However, periodically review and rebalance your portfolio to ensure alignment with your financial goals and risk tolerance.

For a more comprehensive analysis and personalized advice, consider consulting a Certified Financial Planner who can tailor recommendations to your specific needs and objectives.

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

..Read more

Ulhas

Ulhas Joshi  |277 Answers  |Ask -

Mutual Fund Expert - Answered on Aug 13, 2024

Listen
Money
My name is Ravi Verma, and I'm a 37-year-old investor. I have been investing in the following mutual funds for the past year, with a monthly investment amount ranging between 60k-90k. I plan to continue these investments for the next 9 years, aiming to reach a goal of 1 crore+. Could you please review my portfolio and advise if any changes are required or if it's good to continue as is? Current SIPs (?8k-10k per month each): HSBC Small Cap Fund - Direct Plan - Growth Aditya Birla Sun Life PSU Equity Fund - Direct Plan - Growth HDFC Small Cap Fund - Direct Plan - Growth Quant Small Cap Fund - Direct Plan - Growth HDFC Balanced Advantage Fund - Direct Plan - Growth SBI Contra Fund - Direct Plan - Growth Nippon India Growth Fund - Direct Plan - Growth Quant ELSS Tax Saver Fund - Direct Plan - Growth HDFC Retirement Savings Fund - Equity - Direct Plan - Growth Equity - Index Fund: Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - IDCW Groww Nifty Smallcap 250 Index Fund - Direct Plan - Growth Quant Multi Asset Fund - Direct Plan - Growth I don't have much knowledge in mutual funds; I chose these based on their past returns. I'm concerned about whether I'm on the right track or if any adjustments are necessary. Thank you for your guidance. Best regards, Ravi Verma
Ans: Hello Ravi & thanks for writing to me.

I see too many funds in your portfolio, which I believe can dilute your returns.

Given your age & objective, you may want to reconsider your investments in the Balanced Advantage Funds & Multi Asset Funds & instead start allocating to a multi cap fund.

I also notice investments in a PSU Equity Fund. While the PSU funds have given good returns recently, as thematic funds, you must not have a large chunk of your portfolio in them. Investing in thematic funds can generate alpha but thematic funds can also underperform.

If you can provide a percentage breakup of the investments, I may make other recommendations.

..Read more

Latest Questions
Nitin

Nitin Narkhede  |4 Answers  |Ask -

MF, PF Guru - Answered on Sep 10, 2024

Asked by Anonymous - Sep 06, 2024Hindi
Listen
Money
I am 16 and I want to invest in mutual funds. I get pocket money of Rs 3000 per month. After cutting costs, I save about Rs 1200-1500 per month. Can I invest this in SIPs? My goal is to buy a Yamaha bike In December 2025 for my 18th birthday which costs Rs 1.5 lakh. I have already saved Rs 40,000. Where can I invest so that I can double my savings by next year? Please advice
Ans: Dear
It’s awesome that you’re thinking about investing at such a young age! Your goal of buying a Yamaha bike for your 18th birthday is achievable with the right investment strategy. Let’s break it down:
1. SIP (Systematic Investment Plan) for Your Monthly Savings you can absolutely invest your savings in SIPs. With Rs 1200-1500 available per month, SIPs are a great way to start investing in mutual funds. They allow you to invest small amounts regularly, and over time, you can benefit from compounding and rupee-cost averaging, which means your money can grow steadily. However, since your goal is just over a year away (December 2025), you’ll need to invest in something that balances growth with moderate risk, because mutual funds, especially equity ones, can be volatile in the short term.
2. How Much You Need to Save - Your target is Rs 1.5 lakh, and you’ve already saved Rs 40,000.- So, you need Rs 1.1 lakh more by December 2025. - You have roughly 15 months left, meaning you need to save or grow your savings by about Rs 7333 per month to meet your goal.
3. Investment Options - Given your short time frame, here are a few options to consider: - Hybrid or Balanced Mutual Funds: These funds invest in both stocks (equity) and bonds (debt), providing moderate growth with relatively lower risk than pure equity funds. While they might not double your savings in a year, they can give you better returns than a bank savings account. On average, you could expect returns of 8-10% per year. - Debt Mutual Funds: These are safer compared to equity mutual funds but offer lower returns, typically 6-8% per year. Debt funds might be a good option if you want to minimize risk, though they won't give huge returns in a short time. - Recurring Deposits (RDs): If you’re looking for safety and guaranteed returns, an RD in a bank might be a safer option, though the returns will be around 5-6%. This won’t help double your money, but it’s secure.
4. Doubling Your Money in a Year- While it’s tempting to look for ways to double your money quickly, it’s important to understand that high returns usually come with high risk. Investing in high-risk options like **stock trading** or **cryptocurrencies** could lead to losses, especially over such a short period.
Unfortunately, doubling your money in just over a year is not realistic without taking on significant risk. A better approach is to aim for stable growth and possibly adjust your bike budget or timeframe if necessary.
5. Action Plan - Start a SIP in a **balanced or hybrid mutual fund** with your monthly savings of Rs 1200-1500.
- Continue saving as much as possible to reach your target.
- Be cautious of high-risk investments, as they could hurt your savings in the short term.
So the Conclusion that by investing in SIPs and sticking to a disciplined savings plan, you should be able to get close to your goal. While doubling your money may not happen within a year, steady growth will help you build towards your dream bike.
If you need more personalized advice, consider speaking to a financial advisor to find the best funds for your situation.

Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

...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.

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