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Ulhas

Ulhas Joshi  |266 Answers  |Ask -

Mutual Fund Expert - Answered on Mar 07, 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
Bharat Question by Bharat on Mar 01, 2024Hindi
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Hello Ulhas joshi sir, All our corpos mostly 90% is in debt(in the form of FDR's, SSSC, LIC etc) and rest 10% in MF and ULIP. I am 32 years and my mother is 61 years. I am working professional in tier 2 city and mother is retired from government job. I am seeking a financial advice to balance out the investments in debt and want some exposure in equity by investing through MF's. We have a total of 3 cr in debt and approx 40 lacs in equity market. Please suggest us the suitable mix so that our corpus would also grow and expenses would also meet out. Our total expenses per month would be around 35 K. Please also suggest the names of mutual funds to start investing?? Regards, Bharat Manik

Ans: Hi Bharat & thanks for writing to me. I am assuming that you are able to cover your living expenses from your salary & Mothers' pension.

Assuming that you are fine with the risks of equity, you can consider rebalancing your portfolio from the debt tilt to equity tilt.

You can consider investing around 1 Crore in mutual funds, at the below allocation:

1-Small Cap Funds: 10%
2-Mid Cap Funds : 10%
3-Large Cap Funds:15%
4-Flexi Cap Funds:15%
5-Balanced Advantage Funds/Dynamic Asset Allocation Funds: 25%
6-Multil Asset Allocation Funds:25%

The investment in pure equity funds (points 1 to 4) will help your corpus grow but with higher volatility & the BAF/DAAF & Multi Asset Allocation Funds can provide relative stability to your portfolio.

I recommend you to meet a financial planner who can understand your needs & goals to craft a detailed plan for you.
Asked on - Mar 09, 2024 | Not Answered yet
Hello sir, Thanks for the reply. it would be the great help if you suggest the name of the funds
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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Ulhas

Ulhas Joshi  |266 Answers  |Ask -

Mutual Fund Expert - Answered on Aug 23, 2023

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Hi ! I am a retired person 62 yrs old . Recently I sold my equity portfolio , so I am having a spare corpus of about 60-70 lacs . I had kept this amount solely for equity/MF investments as I had also invested in FDs /Gold bonds separately .I want to invest it in an instrument which can give me less risk/good returns (above FDs & inflation beating ) , say about 9-10 % to the least in next 3 year & even better returns in the long run in my seventies /Eighties . Please illuminate me on the following- 1. Is it desirable to put this entire amount in MFs or there should be some direct investment in equities also ? 2. If Yes , what should be the ideal mix of portfolio for me ?Should it have equity ( Large cap /Mutli cap) or Balance Hybrid funds will be more suitable from the risk angle as I am a retired person ? .Please suggest an ideal mix with category & names of fund with the amount to be invested . 3.If no , then please suggest alternatives . Thanks & Regards Apurv Chandra
Ans: Hello Apurv and thanks for writing to me.

Note that I only discuss mutual funds in this column and so will not advise for or against any other asset classes.

To generate inflation beating returns, given that you are retired and would not like to take undue risk, I believe a mix of balanced advantage funds and multi asset funds will be ideal to invest in for a period of around 3 years. Starting SWP's from those schemes after 3 years will help you meet living expenses while your corpus continues to grow.

You can consider investing your funds equally in:
1-ICICI Prudential Regular Savings Fund
2-SBI Conservative Hybrid Fund
3-Tata Balanced Advantage Fund
4-Aditya Birla Sun Life Balanced Advantage Fund
5-Nippon India Multi Asset Fund

..Read more

Ramalingam

Ramalingam Kalirajan  |5193 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

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Hello Ulhas joshi sir, All our corpos mostly 90% is in debt(in the form of FDR's, SSSC, LIC etc) and rest 10% in MF and ULIP. I am 32 years and my mother is 61 years. I am working professional in tier 2 city and mother is retired from government job. I am seeking a financial advice to balance out the investments in debt and want some exposure in equity by investing through MF's. We have a total of 3 cr in debt and approx 40 lacs in equity market. Please suggest us the suitable mix so that our corpus would also grow and expenses would also meet out. Our total expenses per month would be around 35 K. Please also suggest the names of mutual funds to start investing?? Regards, Bharat Manik
Ans: Hello Bharat Manik,

It's commendable that you're looking to diversify your investments and seek growth opportunities in equity markets. Here are some suggestions to achieve a balanced portfolio:

Asset Allocation:
Considering your age difference and risk tolerance, you may adopt a balanced approach to asset allocation.
Allocate a significant portion of your portfolio (around 60-70%) to debt instruments to provide stability and income generation, especially considering your mother's retirement.
Allocate the remaining portion (around 30-40%) to equity investments to benefit from potential growth opportunities over the long term.
Mutual Fund Selection:
For equity exposure, consider investing in a mix of large-cap, multi-cap, and balanced funds to diversify across market segments and manage risk effectively.
Opt for funds with a consistent track record of performance, experienced fund managers, and a strong investment philosophy aligned with your objectives.
Regular Review:
Regularly review your portfolio to ensure it remains aligned with your financial goals, risk tolerance, and market conditions.
Rebalance your portfolio as needed to maintain the desired asset allocation and optimize returns.
Emergency Fund:
Ensure you have an adequate emergency fund set aside in liquid instruments to cover unforeseen expenses and emergencies.
Consultation:
Consider consulting with a Certified Financial Planner to receive personalized advice tailored to your specific needs and goals.
They can help you develop a comprehensive financial plan that addresses your investment objectives, risk tolerance, and retirement needs.
By adopting a balanced approach to asset allocation and investing in diversified mutual funds, you can work towards achieving your financial goals while managing risk effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |5193 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Listen
Money
Hello sir, All our corpos mostly 90% is in debt(in the form of FDR's, SSSC, LIC etc) and rest 10% in MF and ULIP. I am 32 years and my mother is 61 years. I am working professional in tier 2 city and mother is retired from government job. I am seeking a financial advice to balance out the investments in debt and want some exposure in equity by investing through MF's. We have a total of 3 cr in debt and approx 40 lacs in equity market. Please suggest us the suitable mix so that our corpus would also grow and expenses would also meet out. Our total expenses per month would be around 35 K. Please also suggest the names of mutual funds to start investing?? Regards, Bharat Manik
Ans: Hello Bharat,

It's commendable that you're seeking to balance your investments and diversify into equity through mutual funds. Here's a tailored recommendation for you and your mother:

Balancing Debt and Equity:

Emergency Fund: Ensure you have an emergency fund equivalent to at least 6-12 months of expenses kept in liquid instruments like savings accounts or short-term debt funds.
Debt Investments: Since you already have a substantial portion of your corpus in debt instruments, continue to maintain this allocation to ensure stability and regular income. Consider diversifying across different types of debt instruments for optimal risk management.
Equity Investments: Given your age and long-term investment horizon, it's prudent to gradually increase your exposure to equity through mutual funds. Start with allocating a portion of your investable surplus to equity funds.
Suitable Mutual Funds:

Diversified Equity Funds: Look for well-managed diversified equity funds with a proven track record of consistent performance. These funds offer exposure to a broad range of stocks across sectors and market capitalizations.
Balanced Advantage Funds: These funds dynamically manage the equity-debt allocation based on market conditions, making them suitable for investors seeking a balanced approach.
Large Cap Funds: Consider large-cap equity funds for stability and lower volatility. These funds invest in large, established companies with a track record of stable earnings.
Hybrid Funds: Opt for hybrid funds, which invest in both equity and debt instruments, offering a balanced approach to risk and return.
For personalized recommendations and to ensure your investment strategy aligns with your financial goals and risk tolerance, I recommend consulting with a Certified Financial Planner (CFP) or a qualified financial advisor. They can provide customized guidance based on your unique circumstances and help you navigate the complexities of financial planning.

..Read more

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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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