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

30 Years Old, 5 Lakhs: How to Invest for Long Term?

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 04, 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
rahul Question by rahul on Jan 25, 2025Hindi
Money

Hello Team, I have a question on manage the mutual fund and stocks , I have around 5 lakhs and my goal is for long term , Currently i am 30 and my expectation is when I will be at the age of 50, I should have ample amount of money in my hand. I am also planning do lump sun for 3laks annually. My first question is : -As my yearly goal is to invest 3lakhs , i am thinking whenever Nifty 50 will have 5 % of fall, I will invest 20% of 3lakhs at every 5 % falls , is this beneficial for me for good return in future? -for making the MF portfolio diversified what is the good way to invest ? Thank you.

Ans: You are planning to invest Rs 3 lakhs every year. Your idea is to invest 20% of Rs 3 lakhs whenever Nifty 50 falls by 5%. This approach follows market timing, which has both risks and limitations.

Market timing is unpredictable: No one can consistently predict when the market will fall or rise. Waiting for a 5% fall may lead to missed opportunities if markets continue to rise.

Emotional bias affects decisions: Investors hesitate to invest during market crashes due to fear. When markets recover, they hesitate again, thinking it may fall further.

Averaging may not always work: Markets may not always correct by 5% at regular intervals. There can be long periods of growth without correction.

A better alternative is to follow a Systematic Investment Plan (SIP) and a disciplined approach. Instead of waiting for corrections, invest Rs 25,000 per month. If you have excess liquidity, you can invest a lump sum during major corrections.

Diversified Mutual Fund Portfolio
A well-diversified portfolio reduces risk and improves long-term returns. Here’s how you can build one:

Core allocation in Flexi Cap and Large & Mid Cap funds: These funds balance stability and growth. Flexi Cap funds dynamically allocate assets across different market caps.

Mid Cap and Small Cap for growth: A portion can go into Mid Cap and Small Cap funds for higher growth potential. These funds are more volatile but deliver better returns in the long term.

Avoiding Index Funds: Actively managed funds have delivered better risk-adjusted returns than Index Funds in India. Fund managers adjust allocations based on market conditions, unlike index funds that blindly follow the index.

Regular funds over direct funds: Investing through a Certified Financial Planner ensures better portfolio rebalancing and selection of high-performing funds. Direct funds lack professional guidance, which can lead to wrong fund selection or poor risk management.

Lump sum allocation strategy: If you receive a yearly lump sum of Rs 3 lakhs, divide it into multiple tranches. Invest systematically instead of investing in one go.

Rebalancing every two years: Review and adjust your portfolio allocation based on market conditions. This helps in managing risk and improving returns.

Equity Vs Debt Allocation
Since your goal is 20 years away, a higher allocation in equity is suitable. However, a small portion in debt funds can help reduce volatility.

80% in equity funds: This ensures long-term growth and capital appreciation.

20% in debt funds: This acts as a cushion during market downturns. Debt funds also provide liquidity for emergencies.

As you get closer to 50, gradually shift more funds into debt to preserve wealth.

Stock Market Investments
Along with mutual funds, direct stock investing can also create wealth. However, stock investing needs time, effort, and research.

Avoid frequent trading: Holding quality stocks for the long term yields better results than short-term speculation.

Diversify across sectors: Invest in companies across different industries to reduce risk.

Invest in fundamentally strong companies: Look for companies with strong financials, good management, and consistent performance.

Regular monitoring is important: Unlike mutual funds, stocks need regular tracking and adjustments.

If you lack time for research, focus more on mutual funds for wealth creation.

Inflation and Rupee Depreciation Considerations
Since your goal is 20 years away, inflation and rupee depreciation will impact your purchasing power.

Equity funds are the best hedge: Over long periods, equity funds deliver inflation-beating returns.

Avoid keeping too much in fixed deposits: FD returns barely beat inflation and provide poor post-tax returns.

Invest in funds with international exposure: Some funds invest a portion in global markets, reducing currency risk.

Gold allocation for stability: A small portion in gold can act as a hedge against rupee depreciation.

Risk Management and Liquidity Planning
Wealth creation is important, but risk management is equally crucial.

Maintain an emergency fund: Keep at least 6–12 months’ expenses in liquid funds or savings.

Have sufficient health and life insurance: This prevents financial setbacks due to unexpected events.

Avoid over-diversification: Investing in too many funds or stocks reduces the impact of strong performers.

Stay invested for the long term: Short-term volatility is common, but long-term investing rewards patience.

Final Insights
Market timing is difficult and unreliable. Regular investing through SIP is a better approach.

Diversify your mutual fund portfolio with a mix of Flexi Cap, Large & Mid Cap, Mid Cap, and Small Cap funds.

Avoid index funds and direct funds. Regular funds with CFP guidance provide better management.

Maintain a balanced equity-debt allocation and shift towards debt as you approach 50.

If investing in stocks, focus on fundamentally strong companies and hold them for the long term.

Consider inflation and rupee depreciation when planning for 20 years ahead.

Risk management, insurance, and liquidity planning are essential alongside investing.

Following a disciplined investment strategy will help you achieve your financial goal by 50.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2024

Asked by Anonymous - Apr 03, 2024Hindi
Listen
Money
I am 50 working professional. Below is my MF portfolio . 1. Parag Parikh Flexi Cap Fund 2.6 lakhs + 10K SIP 2. PGIM India Midcap Opportunities Fund 1.85 L Value + 5K SIP 3. Quant ELSS Tax Saver Fund 80K 4. Axis Small Cap Fund 1.85 Lakhs Value + 5K SIP 5. Axis Gold Fund 75K Value + 5K SIP 6. Canara Robeco Bluechip Equity Fund 70K 7. Quant Multi Asset Fund 50K 8. SBI Magnum Income Fund 50K 9. ICICI Prudential Equity & Debt Fund 50K 10. Quant Active Fund 50K 11. ICICI Prudential Bluechip Fund 25K I want to build a retirement corpus of 2 crore in 10 years. I am planning to invest around 50K every month. Plus i have. surplus of 4Lakks which i want to invest in few of the MFs above. Planning to exit Canara Robeco bluechip and Axis Small cap soon. Please suggest if any changes you want me to do.
Ans: Given your goal of building a retirement corpus of 2 crores in 10 years and your current portfolio, here are some suggestions:

Increase SIP Contributions: Consider increasing your SIP amounts in high-performing funds like Parag Parikh Flexi Cap and PGIM India Midcap Opportunities Fund, which have shown good potential for long-term growth.

Review and Consolidate: Evaluate the performance of all your funds and consider consolidating your portfolio to fewer, well-performing funds to simplify management and potentially enhance returns.

Focus on Quality: Prioritize funds with strong track records, consistent performance, and experienced fund management teams. Consider adding large-cap and diversified equity funds for stability and balanced growth.

Asset Allocation: Ensure a balanced asset allocation across equity, debt, and gold funds based on your risk tolerance and investment horizon. Reallocate surplus funds strategically to maintain a diversified portfolio.

Regular Review: Monitor your portfolio regularly and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.

Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances and goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

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

Listen
Money
Hi sir,my name is babu ,my age is 33 years. Please review my mutual fund portflio and i am keeping mf portflio for 15 years for retirement corpus. Lumpsum: 1.quant flexi cap fund-1 lakh 2.parag parikh flexi cap fund- 1.2 lakh 3.icici prudential equity and debt fund-50 k 4.quant large and midcap fund-1lakh 5.icici prudential blue chip- 1 lakh 6.edelweiss mid cap fund-1 lakh 7.icici prudential nifty next 50 index- 1lakh Sip: 1.motilal oswal nifty midcap 150 index-4500 2.motilal oswal nifty small cap 150 index-3500 3.HDFC S&P BSE 500 INDEX-2000 4.parag parikh flexi cap-2500 5.icici prudential blue chip-2000 6.hdfc nifty 50 index plan-2500 7.icici prudential nifty 50 index-3000 As i am keepimg mf's for my future goals,i want to take minimal risk. Please review my portfolio and suggest.
Ans: Hello Babu,

Firstly, congratulations on your thoughtful approach to building your mutual fund portfolio. You have a good mix of lump sum investments and SIPs, which is crucial for a well-rounded investment strategy.

Lump Sum Investments
Your lump sum investments are diversified across different categories, which is excellent for risk management. Let’s look at each fund:

Quant Flexi Cap Fund: This fund is versatile and can invest across market capitalizations.

Parag Parikh Flexi Cap Fund: Known for its value investing approach, it includes international stocks for additional diversification.

ICICI Prudential Equity and Debt Fund: This hybrid fund balances equity and debt, offering stability and growth.

Quant Large and Midcap Fund: Invests in large and mid-cap stocks, aiming for a balance of stability and growth.

ICICI Prudential Blue Chip Fund: Focuses on large-cap stocks, providing stability.

Edelweiss Mid Cap Fund: Targets mid-cap stocks, which have the potential for higher growth but come with higher risk.

ICICI Prudential Nifty Next 50 Index Fund: Tracks the Nifty Next 50 index, which can offer growth from emerging large-cap companies.

Systematic Investment Plans (SIPs)
Your SIPs also cover a range of index and active funds. Here’s an evaluation:

Motilal Oswal Nifty Midcap 150 Index Fund: Mid-cap index funds can be volatile but offer high growth potential.

Motilal Oswal Nifty Small Cap 150 Index Fund: Small-cap index funds have even higher growth potential with higher risk.

HDFC S&P BSE 500 Index Fund: A broad market index fund that offers comprehensive market exposure.

Parag Parikh Flexi Cap Fund: Continues to provide diversification and international exposure.

ICICI Prudential Blue Chip Fund: Consistent performer among large-cap funds.

HDFC Nifty 50 Index Plan: Tracks the Nifty 50 index, providing exposure to the top 50 companies.

ICICI Prudential Nifty 50 Index Fund: Another Nifty 50 tracker, providing redundancy in your portfolio.

Disadvantages of Index Funds
While index funds provide low-cost market exposure, they have some limitations compared to actively managed funds:

No Active Management: Index funds simply replicate the index and cannot react to market changes or economic shifts.

No Outperformance: They are designed to match the index performance, not exceed it. Actively managed funds aim to outperform the index.

Limited Flexibility: Index funds must follow the index composition, even if some stocks perform poorly.

Benefits of Actively Managed Funds
Actively managed funds, on the other hand, offer several benefits:

Professional Management: Fund managers make strategic decisions to outperform the market.

Dynamic Allocation: They can adjust the portfolio based on market conditions, potentially reducing risk.

Selective Investments: Fund managers can choose high-potential stocks, avoiding underperformers.

Recommendations
To minimize risk while aiming for growth, consider these adjustments:

Reduce Overlap in Index Funds: You have multiple funds tracking similar indices (Nifty 50). Consider reducing redundancy to simplify your portfolio.

Increase Allocation to Hybrid Funds: Hybrid funds offer a balanced approach, combining equity and debt for stability.

Focus on Quality Active Funds: Include more actively managed funds with a proven track record of consistent performance.

Conclusion
Your portfolio is well-diversified, but some adjustments can enhance its effectiveness. Reducing overlap and focusing more on active management can align with your goal of minimal risk and stable growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Money
Dear Sir, I am 55 years old working in private company. I am investing in following MF monthly, Nippon Small Cap - 10000, Axis Small cap - 10000, HSBC Mid Cap - 10000, ICICI Equity & Debt - 15000, Franklin India Prima fund - 15000, HDFC Balanaced Advantage - 20000. My current MF value is Rs. 1.34 Crores. Apart from this i have invested in Stocks - 36 Lac, PF - 45 Lac, NPS - 22 Lac, FD - 35 Lac. I have taken Health Insurance. I require around 40 Lac for my daughter marriage. 1. I want to know whether my MF portfolio is good to continue or any changes to be made for better return. 2. I will be retiring in 3 years. How i need manage my funds / invest further to achieve 5 Crores retirement fund.
Ans: You've done a commendable job with your investments. Balancing between mutual funds, stocks, PF, NPS, and FDs is impressive. Your dedication to securing your daughter's marriage fund and planning for retirement shows foresight and responsibility. Let's analyze and optimize your portfolio for the best possible returns.

Current Mutual Fund Portfolio

Your current mutual fund investments are diversified across various categories. This includes small cap, mid cap, equity & debt, and balanced advantage funds. Each type serves a unique purpose, balancing risk and return.

Small Cap Funds

Small cap funds have high growth potential but come with significant risk. Your investments in Nippon Small Cap and Axis Small Cap Funds are great for high returns over the long term. Given your proximity to retirement, it might be wise to reduce exposure to mitigate risk.

Mid Cap Funds

Mid cap funds like HSBC Mid Cap offer a balance between risk and return. They can provide substantial growth but are less volatile than small cap funds. Keeping a portion in mid cap is sensible, but consider reducing the allocation as you near retirement.

Equity & Debt Funds

ICICI Equity & Debt Fund provides a balanced approach, combining equity growth and debt stability. This fund type aligns well with your nearing retirement, offering moderate risk and steady returns.

Balanced Advantage Funds

HDFC Balanced Advantage Fund adjusts its allocation between equity and debt based on market conditions. This adaptability is beneficial for reducing risk while aiming for reasonable growth, making it suitable for pre-retirement phase.

Evaluation of the Portfolio

Diversification and Risk Management

Your portfolio is well-diversified across different fund types. However, considering your retirement in 3 years, a higher allocation towards stable, low-risk investments would be prudent. Shifting from high-risk small and mid cap funds to more stable options can protect your corpus.

Performance and Returns

Active funds have the potential to outperform the market. Your selection of actively managed funds is excellent. Regular monitoring and occasional rebalancing can enhance performance. Consult your Certified Financial Planner (CFP) for personalized advice.

Strategies for Future Investments
Risk Reduction

As retirement approaches, prioritize capital preservation. Gradually move funds from high-risk to low-risk investments. Consider increasing allocation in debt funds and balanced advantage funds. These provide stability and consistent returns.

Systematic Withdrawal Plan (SWP)

Implementing an SWP post-retirement ensures a steady income while keeping your investments growing. Plan withdrawals from your corpus strategically to balance between immediate needs and long-term growth.

Power of Compounding

Continue leveraging the power of compounding. Even conservative investments can grow significantly over time. Start transitioning funds early to maximize compound interest benefits while minimizing risks.

Managing Your Other Investments
Stocks

Your Rs 36 lakh in stocks should be evaluated for risk and return. Diversify across stable, high-dividend stocks to generate regular income. Consider reducing exposure to volatile stocks.

Provident Fund (PF)

Your PF of Rs 45 lakh is a substantial and safe retirement corpus. Continue contributions and leverage tax benefits. This fund provides a secure foundation for your retirement.

National Pension System (NPS)

With Rs 22 lakh in NPS, you have a tax-efficient retirement tool. Continue maximizing contributions. NPS offers a mix of equity and debt, providing growth with stability. Consider shifting allocation towards safer options as you near retirement.

Fixed Deposits (FD)

Your Rs 35 lakh in FDs ensures liquidity and safety. Continue using FDs for emergency funds and short-term needs. They offer guaranteed returns, aligning well with your low-risk strategy.

Planning for Your Daughter's Marriage
Marriage Fund Allocation

You need Rs 40 lakh for your daughter’s marriage. Keep this fund in low-risk, highly liquid investments. Short-term debt funds, FDs, or high-interest savings accounts are ideal. Avoid equity exposure for this goal due to market volatility.

Systematic Investment Plan (SIP)

If you haven't already, consider SIPs for a targeted marriage fund. SIPs in debt funds or balanced funds can help accumulate the required amount steadily. Regular contributions will build a substantial corpus by the time needed.

Achieving Your Rs 5 Crore Retirement Goal
Rebalancing Your Portfolio

Shift focus from high-risk to low-risk investments. Increase allocation in debt funds, balanced advantage funds, and other stable options. This transition should start now to align with your retirement timeline.

Increasing Contributions

Maximize your contributions to PF and NPS. Both offer tax benefits and long-term growth. Utilize any available tax-saving schemes to boost your retirement corpus.

Professional Guidance

Regularly consult your CFP. Their expertise will help you navigate market changes, optimize your portfolio, and ensure you stay on track towards your Rs 5 crore goal.

Regular Review

Conduct annual reviews of your portfolio. Adjust based on performance, market conditions, and your changing needs. Stay informed about economic trends and investment opportunities.

Final Insights
You've built a robust and diversified portfolio. Transitioning from high-risk to low-risk investments as you near retirement is crucial. Protecting your capital while ensuring steady growth will help achieve your Rs 5 crore retirement fund.

Stay disciplined with your investment strategy. Regularly consult your CFP for personalized advice. With careful planning and smart adjustments, you can secure a comfortable and financially stable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 11, 2024

Asked by Anonymous - Oct 11, 2024Hindi
Money
Hello Sir, I'm 45 years and starting my MF investment journey, I've selected the below MFs to invest in from a view for my Retirement Planning, If I intend to build a corpus of 5 Cr by 60 yrs of age, are these the right MFs to go with, or do you suggest swapping these for any better ones, kindly suggest. Also can you pls suggest how much amount should I invest lumpsum and via SIPs in these? Thank You !! HDFC Retirement Savings Fund - Equity Plan - G 15yrs(lockin 5 years) Edelwiess Mid Cap Fund - G 12 yrs DSP Health Care Fund - G 10 yrs Bandhan Nifty Alpha 50 Index Fund - G 8 yrs ICICI Pru. Equity & Debt Fund - G - 6 yrs Kotak Low Duration 2 yrs
Ans: It's great to see that you're starting your investment journey at the age of 45. You have a well-thought-out goal of building a Rs. 5 crore corpus by the time you turn 60, and I appreciate the long-term perspective you've adopted.

Let’s dive into a detailed evaluation of the mutual funds you've selected and how they align with your retirement objective. I will also provide insights on how to balance your investments between lump sum and SIPs.

Portfolio Evaluation for Retirement Planning
HDFC Retirement Savings Fund - Equity Plan (15 Years, 5-Year Lock-In)

This fund provides a balanced approach to long-term equity growth with the added advantage of tax saving. However, since it has a five-year lock-in, it restricts flexibility.

Retirement-focused funds often come with higher charges, which may impact returns over the long term. You may want to explore alternatives that offer greater flexibility and lower costs.

It's important to understand that funds specifically marked for retirement often have restrictions on withdrawals, and while that helps you stay disciplined, other diversified equity funds can offer similar returns without the lock-in.

Edelweiss Mid Cap Fund (12 Years)

Mid-cap funds can offer strong growth potential. However, they come with higher volatility. Over a 12-year horizon, the performance can be impressive, but be prepared for periods of market swings.

You could include a diversified large- and mid-cap or flexi-cap fund to balance out the higher volatility associated with mid-caps. While mid-cap exposure is good for growth, diversification will add stability to your portfolio.

DSP Health Care Fund (10 Years)

Sectoral funds, such as healthcare, are typically more volatile and focused on specific sectors. Healthcare can be a long-term growth story, but it is subject to regulatory risks and industry-specific headwinds.

For retirement planning, a more diversified approach may yield better risk-adjusted returns. Instead of concentrating on a single sector, you may want to consider sector rotation or thematic funds that give exposure to broader growth themes.

Bandhan Nifty Alpha 50 Index Fund (8 Years)

Index funds, while low-cost, tend to deliver market-average returns. In this case, the Nifty Alpha 50 Index is based on stocks with strong alpha generation potential. However, index funds lack the active management that can help capture market opportunities and mitigate risks during downturns.

Actively managed funds, handled by experienced fund managers, can outperform during volatile markets and provide you with an opportunity for higher growth. While index funds are low-cost, you may not get the most out of your investment compared to an actively managed fund.

ICICI Prudential Equity & Debt Fund (6 Years)

Hybrid funds like this one balance the risk between equity and debt. They provide a cushion during market corrections due to their debt component while also participating in equity market growth.

For a retirement portfolio, hybrid funds offer a safer route but may not deliver the aggressive growth needed for a Rs. 5 crore corpus in 15 years. These can complement your portfolio, but you may need more equity-focused funds to meet your target.

Kotak Low Duration Fund (2 Years)

Low-duration funds are primarily suited for short-term goals or as a safe parking space for funds. These funds are not ideal for long-term wealth creation due to their limited growth potential.

For retirement planning, equity exposure is essential for generating inflation-beating returns. This fund could be part of your debt allocation, but for a 15-year horizon, you should prioritize equity-heavy investments.

Recommendations for Building a Rs. 5 Crore Corpus
Based on your age and time horizon, achieving Rs. 5 crore in 15 years is a reasonable and attainable goal with the right mix of investments.

Diversification: While you’ve picked a few good funds, the portfolio can benefit from broader diversification. Rather than sector-specific or index funds, consider a mix of large-cap, mid-cap, and multi-cap funds for more balanced growth.

Actively Managed Funds: Actively managed funds often provide higher returns than index funds, particularly in the long term. Fund managers can capitalize on market fluctuations and opportunities that passive index funds cannot.

Flexibility in Retirement Funds: A retirement-focused fund with a lock-in period may limit your options. Consider funds that offer flexibility in withdrawals and fund switches for greater control over your retirement assets.

Balanced Portfolio: A good retirement portfolio should have both equity and debt components, but you should tilt more towards equity for growth in the initial years and gradually increase debt allocation as you approach retirement.

Lump Sum vs. SIP Investments
For retirement planning, the most effective way to invest is a combination of lump sum and SIPs. Here’s how I would recommend you allocate:

SIP Investments: Allocate a larger portion (around 75-80%) of your monthly savings towards systematic investment plans (SIPs). SIPs are great for rupee-cost averaging and help reduce the impact of market volatility over time. For example, if you can invest Rs. 40,000 per month, start SIPs in a diversified portfolio of equity and hybrid funds.

Lump Sum Investments: If you have any surplus funds, invest them in lump sum during market corrections or dips. Lump sum investments can be deployed in balanced hybrid funds to reduce the risk of market timing.

Taxation Considerations
Equity Mutual Funds: Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Debt Mutual Funds: LTCG and STCG are taxed according to your income tax slab.

You should also regularly review your investments to ensure you stay on track with your tax-saving strategies.

Suggested Action Plan
Start with SIPs: Begin monthly SIPs in a mix of diversified equity and hybrid funds, focusing on long-term growth.

Use Lump Sum Wisely: Invest any windfall gains or bonus amounts as lump sum during market corrections. Consider parking the lump sum in liquid funds temporarily and then moving it to equity funds.

Monitor and Review: Keep track of your portfolio’s performance and make adjustments based on market conditions, your changing financial needs, and tax implications.

Finally
Your goal of building a Rs. 5 crore corpus is achievable with disciplined and regular investments. By focusing on the right funds, balancing between equity and debt, and leveraging the power of SIPs, you will be able to create a strong retirement corpus.

I encourage you to stay invested for the long term, be consistent, and review your portfolio periodically. A well-diversified portfolio with a greater focus on equity will help you reach your financial goals with ease.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9752 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 27, 2025

Listen
Money
Hi Nikunj sir, I am 37 years old IT professional and I am looking for your guidance on mutual fund investment. below is my current mutual fund portfolio and need your guidance on this .. please review and let me know the correct way to invest for next 10 years scheme SIP amount HDFC Multi Cap Fund Direct Growth 2000 Kotak Emerging Equity Fund Direct Growth 3000 DSP Multicap Fund Direct Growth 1000 Edelweiss Small Cap Fund Direct Growth 2000 Motilal Oswal Nifty India Defence Index Fund 500 ICICI Prudential Value Discovery Direct Growth 1500 Canara Robeco Small Cap Fund Direct Growth 1000 Apart from this i have invested Lump sum HDFC Multi Cap Fund Direct Growth 33000 DSP Multicap Fund Direct Growth 54000 Canara Robeco ELSS Tax Saver Direct Growth 18663 Tata Nifty Auto Index Fund Direct Growth 27000 Canara Robeco Small Cap Fund Direct Growth 28000 Canara Robeco Manufacturing Fund Direct Growth 25000 SBI Innovative Opportunities Fund Direct Growth 53000 Motilal Oswal Nifty India Defence Index Fund Direct Growth 35000 Tata Nifty India Tourism Index Fund Direct Growth 27000 SBI Automotive Opportunities Fund Direct Growth 52000 ICICI Prudential Value Discovery Direct Growth 31000 Please review and give me path for better planning and suggest me if i need to change my portfolio with fund name for next 10 years.a
Ans: Your portfolio includes SIPs and lump sum investments across multiple categories. Here’s an evaluation:

Strengths of Your Portfolio
Good Diversification Across Market Caps:

You have exposure to small-cap, mid-cap, multi-cap, and value funds.
Focus on Multi-Cap Funds:

Multi-cap funds offer flexibility across different market conditions.
ELSS Fund for Tax Saving:

You have an ELSS fund that helps with tax savings under Section 80C.
Areas That Need Improvement
Overlapping Multi-Cap Funds:

You have three multi-cap funds, which may lead to duplication.
Excessive Small-Cap Exposure:

Too many small-cap funds increase risk and volatility.
Sectoral and Thematic Funds Have High Allocation:

You have index funds in auto, defence, and tourism. These are risky and should not exceed 10% of your portfolio.
Lack of Large-Cap Allocation:

Large-cap funds provide stability, which your portfolio lacks.
Investing in Direct Funds Instead of Regular Funds Through CFP-Backed MFDs:

Regular funds provide expert management and guidance. Direct funds require self-management, which is risky without deep knowledge.
Recommended Changes in Portfolio
Reduce Sectoral and Thematic Funds
Exit index funds in auto, defence, and tourism.
These funds depend on specific sectors and may not perform well in all market conditions.
Increase Large-Cap Exposure
Add a large-cap fund with at least Rs 5,000 SIP.
This will improve stability in the long term.
Optimize Small-Cap Allocation
Reduce the number of small-cap funds. Keep only one or two.
Small caps are high risk, and too much allocation can lead to volatility.
Reduce Multi-Cap Fund Overlap
Choose only one or two multi-cap funds.
This will prevent unnecessary duplication.
Suggested SIP Plan for Rs 30,000 per Month
Large-Cap Fund – Rs 5,000
Multi-Cap Fund – Rs 5,000
Flexi-Cap Fund – Rs 5,000
Mid-Cap Fund – Rs 4,000
Small-Cap Fund – Rs 3,000
Value-Oriented Fund – Rs 3,000
Balanced Advantage Fund (Hybrid Fund for Stability) – Rs 3,000
Sectoral/Thematic Fund (Only if Desired) – Rs 2,000
Final Insights
Reduce exposure to sectoral and thematic funds.
Increase large-cap and balanced allocation for stability.
Avoid direct funds and invest through a Certified Financial Planner-backed MFD.
Stick to a disciplined SIP strategy for the next 10 years.
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  |8858 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Career
I am getting ece in nsut, i would also get cse in iiits like guwahati, sri city, kancheepuram(dual degree) and iiit naya raipur (dsai). I was leaning towards cse because I have heard that even in ece, students go towards software roles only. Is my notion correct and should i go for ece with brand value of dtu, or cse in any of the iiits. Kindly answer
Ans: Shubham, NSUT’s Electronics & Communication Engineering benefits from NAAC A++ accreditation, a robust curriculum in VLSI, signal processing, and IoT, PhD-qualified faculty, and a dedicated placement cell recording an average package of ?15 LPA and a highest of ?45 LPA for ECE graduates. Despite its strong DTU-brand value and 320+ recruiters, many NSUT ECE students transition into software roles, reflecting the sector’s hiring trends. IIIT Guwahati’s CSE offers a focused programming and systems syllabus, achieving a 62% placement rate with an average package of ?15.26 LPA. IIIT Sri City’s CSE sees an 81% placement rate and a ?14.5 LPA average, while IIITDM Kancheepuram’s CSE registers 73% placements and a ?9.6 LPA average. IIIT Naya Raipur’s DSAI dual-degree reports a ?17.13 LPA average and 83+ offers from Deloitte, TCS and Capgemini. All institutes maintain modern labs, strong industry collaborations, and rigorous academic frameworks.

Recommendation: Pursue NSUT’s ECE to leverage its renowned DTU brand, superior ECE-specific labs and high average packages if you value institutional prestige and core curriculum depth; opt for CSE at IIIT Sri City or Guwahati for early software focus, competitive placement rates and specialized programming ecosystems aligned with your software-oriented career interests. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8858 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Career
Hi sir ,my son got 9300 rank in kcet he is looking for option in ece in pes electronic City campus and dsce ece which is better
Ans: Swati Madam, With a KCET rank of 9300 in the General category, admission to Electronics & Communication Engineering (ECE) at PES Electronic City Campus is highly unlikely, as ECE cutoffs at PES Electronic City typically closed around 8391 for General Merit students in the final round of 2024. Similarly, DSCE ECE had a closing rank of 7793 for General Merit students in the final round of 2024, making admission challenging with your current rank. PES Ring Road Campus ECE closed at 3045 for General Merit in Round 4 of 2024, further confirming that PES campuses maintain competitive ECE cutoffs well below your rank.

However, excellent alternatives exist for ECE admission with your rank. Based on 2024 KCET cutoffs, you have assured admission prospects at: Sir M. Visveswaraya Institute of Technology (SMVIT) - ECE closing rank around 16,500-17,700; Nitte Meenakshi Institute of Technology - ECE closing rank around 8800-9300; Bangalore Institute of Technology - ECE closing rank around 10,712-11,806; JSS Science and Technology University - ECE closing rank around 5900-6100; Siddaganga Institute of Technology - ECE closing rank around 17,500-18,000; BMS Institute of Technology and Management - ECE closing rank around 11,000-12,000; and NIE Mysore - ECE closing rank around 8300-8500. All these institutes are AICTE-approved, NBA-accredited, feature modern ECE labs with signal processing, VLSI, and communication equipment, experienced faculty, and placement cells recording 75-85% consistency for ECE graduates over the last three years. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...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