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Vivek

Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Apr 19, 2024

Vivek Shah is a SEBI registered investment advisor and certified financial planner from FPSB India. He has over 18 years of experience in financial planning.
Shah founded Finrise, a financial planning and wealth management firm, in 2011. He believes that equity investment is the only way to generate long term wealth.
He has an MBA in finance, a degree in chartered accountancy and is a registered life planner from Kinder Institute of Life Planning, USA.... more
Vaibhav Question by Vaibhav on Apr 19, 2024Hindi
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Hello sir, I have started SIP in motilal oswal Nasdaq 100 of 100 fund since last 6 months. Should I continue with this?

Ans: Hello Vaibhav,

Firstly, it's essential to assess your investment goals, risk tolerance, and the suitability of the investment in your portfolio. The Motilal Oswal Nasdaq 100 Fund offers exposure to some of the largest and most innovative companies listed on the Nasdaq Stock Market, providing an opportunity for diversification and potential growth.

Considering you've been investing in the fund for the past six months, it's a good start to evaluate its performance against your expectations and the broader market trends. While short-term fluctuations are common in the stock market, analyzing the fund's performance relative to its benchmark index and peers can offer valuable insights.

Additionally, review the fund's investment strategy, portfolio composition, and expense ratio to ensure they align with your investment objectives and risk profile. Regular monitoring of your investments is crucial to adapt to changing market conditions and make necessary adjustments to your portfolio.

Ultimately, the decision to continue with your SIP in the Motilal Oswal Nasdaq 100 Fund should be based on your long-term financial goals, investment horizon, and comfort level with market volatility. If the fund continues to meet your expectations and remains in line with your investment strategy, it may be prudent to stay invested.

However, if you have concerns about the fund's performance, changes in your financial situation, or shifts in your investment objectives, it's advisable to reassess your investment strategy and consult with a qualified financial advisor to explore alternative options.

Remember, investing is a journey that requires careful planning, patience, and periodic review. I encourage you to stay informed, stay focused on your goals, and make decisions that align with your financial aspirations.
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  |5108 Answers  |Ask -

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

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I am investing monthly Sip for horizon 15-20yrs should I continue. Mirae asset tax saver fund parag parikh flex cap fund motilal oswal midcap fund Nippon india small cap fund quant small cap fund monthly10k in each shouid continue ? Can I add Sbi contra fund to my portfolio
Ans: Evaluation of Existing SIP Portfolio and Potential Addition

Current Portfolio Review:

Your current SIP investments in Mirae Asset Tax Saver Fund, Parag Parikh Flexi Cap Fund, Motilal Oswal Midcap Fund, Nippon India Small Cap Fund, and Quant Small Cap Fund reflect a well-diversified approach across different market segments. These funds cater to varying risk appetites and have the potential for long-term wealth creation.

Assessment of Continuing SIPs:

Mirae Asset Tax Saver Fund:

This ELSS fund offers tax benefits under Section 80C of the Income Tax Act and has a track record of delivering consistent returns.
Given your investment horizon of 15-20 years, continuing SIPs in this fund can be beneficial for wealth accumulation while availing tax benefits.
Parag Parikh Flexi Cap Fund:

Known for its global diversification strategy and focus on quality stocks, this fund is suitable for long-term wealth creation.
The fund's flexible allocation across market caps provides stability and growth potential, making it suitable for your investment horizon.
Motilal Oswal Midcap Fund:

Midcap funds tend to be more volatile but offer higher growth potential over the long term.
Considering your extended investment horizon, continuing SIPs in this fund can help capture the growth opportunities presented by mid-cap stocks.
Nippon India Small Cap Fund and Quant Small Cap Fund:

Small-cap funds have the potential for significant growth over the long term but come with higher volatility.
Since you have a long investment horizon, maintaining SIPs in these funds can capitalize on the growth potential of small-cap stocks.
Potential Addition:

Considering adding SBI Contra Fund to your portfolio merits evaluation. Here's why:

Contrarian Approach: SBI Contra Fund follows a contrarian investment strategy, investing in stocks that are undervalued or out of favor.
Diversification: Adding this fund can further diversify your portfolio, as it focuses on stocks across market caps and sectors.
Potential Upside: The fund's contrarian approach can lead to outperformance during market cycles, complementing the growth-oriented nature of your existing SIPs.
Conclusion:

Continuing SIPs in your current portfolio funds align well with your long-term investment horizon of 15-20 years. Additionally, considering the potential benefits of SBI Contra Fund and its diversification advantages, adding it to your portfolio can enhance diversification and potentially boost returns over the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

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Sir, I have SIPs in following fund: 1) ICICI Pru Bluechip Fund - Rs. 2000; 2) Mirae Asset Large Cap Fund - Rs. 1000; 3) HSBC Mid Cap Fund - Rs. 2000; 4) Nippon Small Cap Fund - Rs. 1000; 5) ICICI Pru Flexicap Fund - Rs. 2000; 6) HDFC Flexicap Fund - Rs. 2000; 7) ICICI Nifty IT Index Fund - Rs. 1000; 8) Motilal S&P 500 Fund - Rs. 1000; 9) Nippon India Silver ETF FOF - Rs. 1000. Should I continue?
Ans: Your disciplined approach to investing through Systematic Investment Plans (SIPs) is commendable. Diversifying across various fund categories shows a thoughtful strategy. Let’s analyse your portfolio in detail.

Large Cap Funds
You have investments in two large cap funds. These funds focus on established companies, providing stability and moderate growth.

Large cap funds are generally less volatile and offer steady returns, making them suitable for long-term goals.

Mid Cap and Small Cap Funds
Your portfolio includes mid cap and small cap funds. Mid cap funds invest in medium-sized companies, which can offer higher growth potential but come with increased risk.

Small cap funds invest in smaller companies, which are riskier but have significant growth potential.

Flexicap Funds
You have SIPs in two flexicap funds. Flexicap funds provide flexibility by investing across large, mid, and small cap stocks. This diversification within a single fund can enhance returns and reduce risk.

Sector and Thematic Funds
The inclusion of a sector-specific fund, like the Nifty IT Index Fund, and a thematic fund, like the Motilal S&P 500 Fund, adds diversity. However, these funds can be volatile as they are concentrated in specific sectors or themes.

Commodity-Based Fund
Your portfolio includes the Nippon India Silver ETF Fund of Funds (FOF). Commodity-based funds can provide diversification, but they can be volatile and are influenced by market demand and global trends.

Portfolio Overlap and Concentration
While your portfolio is diversified, it is essential to assess the overlap. Multiple funds investing in similar sectors or companies can lead to redundancy.

Disadvantages of Index Funds and ETFs
Index funds and ETFs track a specific index and replicate its performance. They cannot outperform the market since they lack active management.

Actively managed funds, on the other hand, aim to beat the market through strategic decisions and dynamic adjustments.

Benefits of Actively Managed Funds
Actively managed funds have experienced managers who strive to outperform the market. They can adjust the portfolio based on market conditions and select high-potential stocks, offering better returns.

Assessing the Need for Rebalancing
Given your portfolio, it may be beneficial to rebalance for optimal performance. Here are some suggestions:

Reduce Overlap: Consider reducing the number of large cap funds to avoid redundancy.

Focus on Quality Funds: Ensure the funds you invest in have a consistent performance record and a good management team.

Reevaluate Sector/Thematic Funds: Assess if the sector and thematic funds align with your risk tolerance and investment goals.

Regular Monitoring and Review
Regularly review your portfolio to ensure it aligns with your financial goals. Market conditions change, and periodic adjustments are necessary.

Consulting a Certified Financial Planner (CFP) can provide professional advice tailored to your needs. A CFP can help you select suitable funds, monitor performance, and make necessary adjustments.

Conclusion
Your diversified SIP portfolio shows a thoughtful approach towards long-term wealth creation. With some adjustments and regular reviews, you can enhance your portfolio's performance.

Focus on reducing overlap, prioritising actively managed funds, and aligning your investments with your financial goals. Keep up the good work and continue your disciplined investing.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Chocko

Chocko Valliappa  |356 Answers  |Ask -

Tech Entrepreneur, Educationist - Answered on Jul 22, 2024

Asked by Anonymous - Jul 21, 2024Hindi
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A doctorate from IIT Bombay in Metallurgy and masters from NIT in Manufacturing with 5 years of experience including 2 years in academics and currently working from past 3 years in industry where I work mostly on finite element analyst of forging and bulk extrusion process and New product development as manager heading a team of 5 people. I have working knowledge of 3-4 FE software related to metal forming domain along with ANSYS STRUCTURAL. Despite that I am not getting any interview calls as I am currently looking for a job switch and have put up my profile both on NAUKRI AND LINKEDIN. Some calls are coming to me but that are all irrelevant profiles in which my expertise is not there. I have been trying for the past 6 months but have not got any positive response. Despite such a highly educated person from premier institute and not getting any response is highly depressing. Could you suggest how to apply and where to apply and any other website where I shall make my profile to get a positive response ? Thanks. .................
Ans: You have accomplished academic background and work in a very specialised area. You may have to expand your job search to a broader field of Metalurgy, Product Managment, Operations and not be limited to Finite Element analysis. Think through again and look for companies active in the field of metallury and users and producers of Steel, Metals. You may also look at academics. Use your academic contacts in the two IIT--IIT B and NIT, previous employers and seek their help in connecting you with possible openings. You also need to give yourself more time and be optimistic.

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Ramalingam

Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 21, 2024Hindi
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Meri umar 46 sal hai 60ke bad 2lak rs mahine ka inkam chahta hun sip me ktane investment karu
Ans: Planning for Post-Retirement Income
You are 46 years old and want a monthly income of Rs 2 lakh after 60. Let's create a strategy to achieve this goal through SIP investments.

Assessing Your Current Situation
Current Age: 46 years
Retirement Age: 60 years
Target Monthly Income Post-Retirement: Rs 2 lakh
Time Horizon: 14 years
Estimating Required Corpus
To generate a monthly income of Rs 2 lakh, you need a substantial retirement corpus. Let's estimate the corpus required using a safe withdrawal rate of 4%.

Annual Income Required: Rs 2 lakh x 12 = Rs 24 lakh
Corpus Needed: Rs 24 lakh / 4% = Rs 6 crore
SIP Investment Strategy
To accumulate Rs 6 crore in 14 years, consistent SIP investments are crucial. Let's determine the monthly SIP amount needed.

Calculate Monthly SIP Amount
The calculation involves assumptions about expected returns. Assume an annual return of 12% from equity mutual funds.

Using an online SIP calculator:

Corpus Required: Rs 6 crore
Time Horizon: 14 years
Expected Annual Return: 12%
The estimated monthly SIP amount needed is around Rs 1 lakh.

Recommendations for SIP Investments
Diversify Your Portfolio
Equity Funds: Focus on diversified equity funds for higher growth.
Balanced Funds: Include balanced funds for stability and moderate returns.
Debt Funds: Allocate a portion to debt funds for lower risk.
Regularly Review and Adjust
Monitor Performance: Regularly review your portfolio's performance.
Adjust Allocations: Adjust allocations based on market conditions and goals.
Gradually Increase SIP Amount
Step-Up SIP: Increase your SIP amount annually to boost corpus growth.
Bonus or Increment: Use bonuses or salary increments to increase investments.
Final Insights
To achieve a post-retirement income of Rs 2 lakh per month, you need to accumulate around Rs 6 crore.

Start with a monthly SIP of around Rs 1 lakh.
Diversify your investments across equity, balanced, and debt funds.
Regularly review and adjust your portfolio.
Gradually increase your SIP amount over time.
By following this strategy, you can achieve your retirement income goal. Consult a Certified Financial Planner to tailor the plan to your specific needs and circumstances.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 03, 2024Hindi
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Hi My per annum package is around Rs. 21 lacs. I have a home loan EMI of Rs. Rs. 2.28 lacs. I have investment of Rs. 3.6 lacs in various insurance schems. Apart from that I have some investment of Rs. 200000 in MF. Please guide me how much investment I need to do for tax savings ?
Ans: Income and Existing Investments
Annual Package: Rs 21 lakhs
Home Loan EMI: Rs 2.28 lakhs per annum
Insurance Investments: Rs 3.6 lakhs
Mutual Fund Investments: Rs 2 lakhs
Tax Saving Investments Under Section 80C
To maximize tax savings under Section 80C, you can invest up to Rs 1.5 lakhs per annum. Here’s a breakdown:

Existing Eligible Investments
Home Loan Principal Repayment: Part of your home loan EMI goes towards principal repayment, which qualifies under Section 80C.
Insurance Premiums: The Rs 3.6 lakhs in insurance schemes might include premium payments that are eligible under Section 80C.
Additional Investments Required
Calculate Existing Deductions: First, identify the portion of your EMI and insurance premiums that qualify for Section 80C. Let's assume your home loan principal repayment is Rs 1 lakh per annum and the insurance premiums are Rs 50,000 per annum.
Investment Suggestions for Additional Tax Savings
To fully utilize the Rs 1.5 lakhs limit, you need to invest an additional Rs 50,000.

Equity-Linked Savings Schemes (ELSS)
Benefits: ELSS funds offer tax savings and have the potential for high returns.
Lock-in Period: They come with a 3-year lock-in period, the shortest among all tax-saving options under Section 80C.
Public Provident Fund (PPF)
Benefits: PPF offers tax-free returns and is a safe investment option.
Lock-in Period: 15-year lock-in, but partial withdrawals are allowed after the 7th year.
Sukanya Samriddhi Yojana (SSY)
Benefits: If you have a daughter, SSY is a good option with attractive interest rates and tax benefits.
Lock-in Period: Till the daughter turns 21 or gets married after the age of 18.
National Savings Certificate (NSC)
Benefits: NSC is a safe investment option with a fixed interest rate.
Lock-in Period: 5 years.
Voluntary Provident Fund (VPF)
Benefits: You can contribute more than your mandatory EPF contribution.
Returns: Similar to EPF returns and safe.
Other Tax-Saving Sections
Section 80D - Health Insurance Premium
Benefits: Deduction up to Rs 25,000 for self, spouse, and children. Additional Rs 25,000 for parents under 60 and Rs 50,000 if they are over 60.
Section 80E - Education Loan Interest
Benefits: Deduction on interest paid on education loans for higher studies.
Section 24 - Home Loan Interest
Benefits: Deduction up to Rs 2 lakhs on interest paid on home loan.
Review and Reallocate Existing Investments
Insurance Policies
Evaluation: Assess if your insurance policies are purely for investment or provide adequate life cover.
Reallocation: Consider surrendering or reducing investment-cum-insurance policies and reallocating to mutual funds.
Mutual Funds
Focus on Growth: Since your goal is wealth creation, consider allocating more to equity funds for higher growth potential.
Final Insights
Maximize Section 80C: Utilize the full Rs 1.5 lakh limit under Section 80C with a mix of ELSS, PPF, and SSY.
Diversify: Ensure your portfolio is diversified across different asset classes for balanced growth and risk management.
Regular Monitoring: Periodically review and adjust your investments to stay aligned with your financial goals.
Certified Financial Planner: Consider consulting a Certified Financial Planner for personalized advice and strategy.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

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I have invested 10L in Mutual Fund through Lumpsum mode. The 4 schemes which I have invested in are PPFAS FLEXI CAP REG-G (2.5L), ICICI PRU equity & Debt-G (2.2L), ICICI PRU Large & Mid Cap-G (2.2L), SBI long term Equity Reg-G (2L), SBI contra -G (1.10L). Investment objective is long term wealth creation and time frame is 15 years. Kindly Suggest if choice of funds is good and what could be potential return.
Ans: Let's review your mutual fund choices and assess their suitability for your long-term wealth creation goal.

Current Investment Overview
Total Investment: Rs 10 lakhs
Investment Mode: Lumpsum
Time Frame: 15 years
Fund Allocation
PPFAS Flexi Cap Reg-G: Rs 2.5 lakhs
ICICI Pru Equity & Debt-G: Rs 2.2 lakhs
ICICI Pru Large & Mid Cap-G: Rs 2.2 lakhs
SBI Long Term Equity Reg-G: Rs 2 lakhs
SBI Contra-G: Rs 1.1 lakhs
Evaluation of Fund Choices
PPFAS Flexi Cap Reg-G
Flexibility: Invests across market capitalizations and sectors.
Potential: Good for capturing diverse market opportunities.
Long-Term Suitability: Suitable for long-term wealth creation.
ICICI Pru Equity & Debt-G
Balanced Approach: Mix of equity and debt.
Stability: Provides a cushion against market volatility.
Long-Term Suitability: Suitable for balancing risk and returns.
ICICI Pru Large & Mid Cap-G
Growth Potential: Invests in large and mid-cap companies.
Risk-Return Balance: Good for capturing growth in established and growing companies.
Long-Term Suitability: Suitable for long-term capital appreciation.
SBI Long Term Equity Reg-G
ELSS Fund: Offers tax benefits under Section 80C.
Equity Focus: High equity exposure for potential high returns.
Long-Term Suitability: Suitable for long-term wealth creation with tax benefits.
SBI Contra-G
Contrarian Strategy: Invests in undervalued stocks.
Potential: Can yield high returns if the strategy pays off.
Long-Term Suitability: Suitable for long-term investors willing to take higher risks.
Potential Returns
Assuming an average conservative annual return of 10-12% for a diversified portfolio, your potential return over 15 years could be significant. However, mutual funds are subject to market risks, and actual returns may vary.

Recommendations
Diversification: Your portfolio is well-diversified across different fund types and strategies, which is good for risk management.

Fund Performance Review: Regularly review the performance of your funds. Consider reallocating if any fund consistently underperforms its benchmark.

Stay Invested: For long-term wealth creation, stay invested for the entire 15-year period to benefit from compounding.

Avoid Index Funds: Actively managed funds like yours can potentially offer better returns than index funds.

Additional Considerations
Regular Monitoring: Keep an eye on your portfolio and the market trends.
Certified Financial Planner: Consult a Certified Financial Planner for personalized advice and adjustments.
Final Insights
Balanced Portfolio: Your fund choices provide a good mix of growth, stability, and potential tax benefits.
Long-Term Focus: Stay focused on your long-term goal and avoid frequent changes based on short-term market fluctuations.
Potential for Growth: With disciplined investing and regular monitoring, your portfolio has the potential to achieve significant growth over 15 years.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...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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