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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on May 22, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Shakir Question by Shakir on May 19, 2023Hindi
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Money

Hi sir hope alls well with you and your family. Sir i hav a simple question . Can we invest 10,000 sip per month in HDFC NFO which is based on defence theme

Ans: Thanks Shakir, everything great with us. Hope the very same with you and your family.

All NFOs will offer you only a bulk subscription facility. Typically, NFOs close in a few days and then open within a week or so and then you can set-up a SIP the way you would for any fund in a normal manner.

If you do wish to subscribe to this particular NFO (HDFC Defence Fund) only through a SIP, let’s say of Rs 5000, then you have two options:-
1. Minimum subscription amount is Rs 5000. Invest Rs 5000 in the NFO. When you get the allotment, you would also get your folio number along with it. Set up your SIP in it for Rs 5000.

2. Do not do anything during the NFO. When the NFO closes and the fund opens for regular subscription (which will be within 5 business days of NFO closing, as per the scheme documents), set up the SIP as you desire.

Above notwithstanding, I will request everybody to not confuse between an IPO of a stock (share) and NFO of a mutual fund scheme. The two are intrinsically entirely different. A NFO has just no track record and you could be investing in a new born baby hoping that he will be Amitabh Bacchan when he grows up!

We advise our clients never to invest in any NFO.
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  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

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I am planning to Invest in NFO (HDFC Manufacturing Fund). And plan to invest for 2 years the same amount. And after that every year increase by 10% to 15%. How good is this Investment plan. Please advise.
Ans: Your interest in investing in the HDFC Manufacturing Fund New Fund Offer (NFO) is commendable. It’s crucial to evaluate such investments carefully, especially when considering sectoral funds and NFOs. Let’s explore the potential downsides of NFOs and sectoral funds and understand why you might want to consider other options.

Firstly, your proactive approach to increasing your investment amount annually by 10% to 15% is excellent. This strategy reflects a commitment to growing your wealth systematically.

Understanding NFOs
Lack of Performance History
One of the primary disadvantages of investing in NFOs is the lack of a performance track record. Unlike established funds, NFOs do not have historical data to demonstrate how they perform across different market cycles. This makes it challenging to gauge their potential for future returns.

Marketing Hype
NFOs are often heavily marketed, creating a sense of urgency and excitement. However, this hype can overshadow the fund’s actual investment strategy and potential risks. Investors might get swayed by marketing campaigns without fully understanding the implications of their investment.

Initial Costs
NFOs sometimes come with initial costs, such as entry loads, which can eat into your returns. Established funds often have lower expense ratios and no entry loads, making them more cost-effective in the long run.

Disadvantages of Sectoral Funds
High Risk and Volatility
Sectoral funds, like the HDFC Manufacturing Fund, focus on a specific industry. This concentration can lead to high risk and volatility. If the manufacturing sector faces a downturn, your entire investment could be adversely affected. Diversification is limited, increasing the impact of sector-specific risks.

Lack of Diversification
Sectoral funds do not offer the broad diversification found in multi-cap or flexi-cap funds. Investing heavily in one sector means your portfolio is not protected against risks in that particular sector. Diversified funds spread investments across various sectors, reducing overall risk.

Economic Cycles Impact
Sectoral funds are highly sensitive to economic cycles. The manufacturing sector, for example, can be significantly affected by economic downturns, changes in government policies, and global market conditions. This sensitivity can lead to unpredictable returns.

Evaluating Your Investment Strategy
Investment Horizon
Given your plan to invest for two years and then increase your investment annually, it’s essential to align your strategy with your financial goals and risk tolerance. Sectoral funds are generally more suitable for experienced investors with a higher risk appetite and a longer investment horizon.

Consider Diversified Funds
Instead of sectoral funds, consider investing in diversified equity funds. These funds spread your investment across various sectors and companies, providing better risk management and potentially more stable returns. Diversified funds can include large-cap, mid-cap, and small-cap stocks, offering a balanced approach.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP) to ensure your investment strategy aligns with your long-term financial goals. A CFP can provide personalized recommendations based on your risk profile and investment objectives.

Conclusion
Investing in NFOs and sectoral funds comes with significant risks due to the lack of performance history, high volatility, and limited diversification. Instead, consider diversified equity funds for a more balanced and stable investment approach. Your proactive strategy of increasing investment annually is commendable, and with the right guidance, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Shyam

Dr Shyam Jamalabad  |78 Answers  |Ask -

Dentist - Answered on Nov 14, 2024

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Health
Dr. Shyam, I had my teeth cleaned 6 months ago and after that was done I saw discoloration on certain teeth that wasn't there before. Years ago I had my teeth cleaned and one particular tooth after the cleaning was sensitive to touch. I had a crown put in from two different dental offices. The first one did the crown right, but was trying to charge me $3,500 more than the agreement they made with Medicare. Medicare corrected that. I other dentist did a crown and it didn't go all the way up to my gums and is sensitive to especially cold things. I'm not having very good experiences with dentist by and large. Can't find an honest one or one that can actually do the job right. I feel being on Medicare your a target to bring in money. Not sure what to do next. Supposed to go back and have them redo the crown that didn't go to my gums, but it also was ttd place to didn't clean my teeth right and discolored some of them. Any suggestions on how to trust there is actually an capable and honest dentist out there who can perform properly?
Ans: Identifying a capable and honest dentist is crucial for your oral health and well-being. Here are some tips to help you find one:

1. Ask for referrals: Ask friends, family, or coworkers for recommendations. They can provide valuable insights into a dentist's work quality and bedside manner.

2. Check credentials: Ensure the dentist has the necessary qualifications, certifications, and licenses. You can verify this information with your state's dental board or professional organizations like the American Dental Association (ADA).

3. Check online reviews: Look up the dentist on review platforms. Pay attention to the overall rating and read the comments to understand the strengths and weaknesses. At the same time, do not rely on reviews alone as these can be manipulated, fake reviews can be easily generated.

4. Evaluate their communication style: A good dentist should listen to your concerns, explain procedures clearly, and answer questions patiently. Ensure you feel comfortable asking questions and discussing your treatment.

5. Assess their facility and equipment: A well-organized and modern dental office with up-to-date equipment is a good sign.

6. Check their approach to preventive care: A capable dentist emphasizes preventive care, including regular cleanings, exams, and education on oral hygiene.

7. Be wary of over-treatment: A honest dentist will not recommend unnecessary procedures. Be cautious if you feel pressured into extensive treatments.

8. Trust your instincts: If something feels off or you don't click with the dentist, it's okay to explore other options.

10. Schedule a consultation: Many dentists offer initial consultations or meet-and-greets. Use this opportunity to assess their approach, ask questions, and gauge your comfort level.

By following these steps, you can increase your chances of finding a capable and honest dentist who prioritizes your oral health and well-being.

...Read more

Ravi

Ravi Mittal  |416 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 14, 2024

Asked by Anonymous - Nov 03, 2024Hindi
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Relationship
Hi, I am 30 years old not married & now my parents are forcing me to get married. I think i am good looking guy. It's not like i have never been with girls. I have had brief flings with multiple girls. And there was one girl whom i was in a platonic relationship with with lot of emotional sharing & have spent a lot of time with her. The same goes with another girl. Both of them have told me that i have been pretty cool & girls would like me to be their bf or husband. But i am not able to accept anyone because of the guilt that of my past that i never had a relationship. Never been able to tell anyone that i had a gf. I know this is wrong to compare my life but i can't stop thinking that way. Can you tell me what to do? Like a contsant regret of not having a very steamy cool fancy relationship from outside. I know relationships have it's own ups & downs. But this guilt is killing me that i missed out lot of things in life & if get married in an arranged marriage i would feel myself to be a looser who couldn't even find a girl on his own. Though i know all of these comparisons are wrong & i should be rational. I am not able to help it. Please help me out
Ans: Dear Anonymous,
Whatever you are feeling, it is very normal. More people than you could imagine go through this same phase. But as you mentioned, these are just thoughts; there is no truth to them. Not having a relationship does not make you uncool. It merely means that you did not meet your perfect match yet. I understand that you feel like you have missed out on something and that feeling is valid. It might not be reasonable, but it's very natural to think this way. I can suggest one thing- why don't you try a dating or matchmaking app to find your own partner? That way, you will be keeping your parents' wishes and won't let yourself down either. It will also give you more control over choosing your life partner.

Hope this helps.

...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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