HOW GOOD IS INVESTING IN MIRAE ASSET AGGRESSIVE HYBRID FUND?

Ans: its rated 3 stars , which means there are better mutual funds than this.
3 BEST Performing Large Cap
#mutualfunds in the last 5 yrs:

1. Canara Robeco Bluechip Fund
(5 yr CAGR return : 14.9%)
2. Nippon India LargeCap Fund
(5 yr CAGR return: 14.6%)
2. Baroda BNP Paribas Large cap
(5 yr CAGR return: 14.2%)

Ans: Hi Gopal

A few observations, for the total amount of investment being made monthly, you don't need to invest in so many schemes. 1-2 schemes are enough, of which 1 can be ELSS if you have tax-saving requirements. The other can be a flexicap fund as your existing portfolio seems to be a mix of large, mid and small-cap funds.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.

Ans: Quant mutual funds utilize quantitative or mathematical models to select investments rather than relying solely on human judgment. These models analyze vast amounts of data to identify investment opportunities based on various factors like price, volume, and financial metrics. This approach aims to remove emotional bias from investment decisions and create a systematic, disciplined investment process.

Investing in Quant mutual funds can offer certain advantages:

Systematic Approach: Quantitative models follow a systematic approach to investing, which can lead to consistent and disciplined investment decisions.
Emotion-Free Investing: By relying on data and algorithms, Quant funds aim to remove emotional biases that can sometimes lead to poor investment choices.
Diversification: Quant funds often hold a diversified portfolio, spreading investments across different sectors and asset classes to reduce risk.
However, it's essential to consider some factors before investing in Quant mutual funds:

Performance Variability: Quant funds' performance can be more volatile than traditional funds, as they may be more sensitive to market fluctuations and changes in the underlying models.
Complexity: The mathematical models used by Quant funds can be complex and may not always capture all market nuances or unforeseen events.
Management Risk: While algorithms drive investment decisions, human oversight is still crucial. The quality and experience of the fund manager and the team behind the quantitative models are vital for the fund's success.
In conclusion, whether or not to invest in Quant mutual funds depends on your investment objectives, risk tolerance, and investment horizon. If you value a systematic approach, are comfortable with potential volatility, and believe in the capabilities of the Quant fund's management team, it could be worth considering as part of a diversified investment portfolio. As always, consulting with a Certified Financial Planner can help you evaluate if Quant mutual funds align with your financial goals and risk profile.

Ans: SBI Equity Hybrid Fund - Regular Growth is a hybrid mutual fund offered by SBI Mutual Fund. As a hybrid fund, it invests in a mix of equity and debt instruments to provide investors with a balanced exposure to both asset classes. Here are some key points to consider:

Investment Objective: The fund aims to provide long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity-related securities. It also aims to generate reasonable income through investments in debt and money market instruments.

Asset Allocation: The fund typically maintains a mix of equity (at least 65%) and debt instruments to achieve its investment objectives. The allocation between equity and debt may vary based on market conditions and the fund manager's outlook.

Risk Profile: As a hybrid fund, SBI Equity Hybrid Fund carries moderate to moderately high risk due to its exposure to equity markets. Investors should be prepared for fluctuations in NAV (Net Asset Value) based on market movements.

Performance: Evaluate the fund's historical performance relative to its benchmark and peer group to assess its consistency and ability to generate returns over the long term.

Expense Ratio: Consider the expense ratio of the fund, which represents the annual operating expenses deducted from the fund's assets. A lower expense ratio can contribute to higher returns for investors.

Fund Manager: Understand the expertise and track record of the fund manager managing SBI Equity Hybrid Fund. The fund manager's investment decisions play a crucial role in achieving the fund's objectives.

Before investing in SBI Equity Hybrid Fund, assess whether it aligns with your investment goals, risk tolerance, and investment horizon. It's advisable to consult with a financial advisor who can provide personalized advice based on your financial situation and objectives. Additionally, review the fund's scheme information document (SID) and other relevant disclosures for detailed information about its investment strategy, risk factors, and past performance.

Best regards,
Ramalingam, MBA, CFP
Chief Financial Planner

Ans: Portfolio Review
Current Allocation: Mirae Asset Large and Mid Cap Fund is 40% of your corpus.

Performance: Review the fund's historical performance. Check its returns, consistency, and risk profile.

Diversification: A single fund making up 40% of your portfolio is a concentration risk. Diversification can help manage this risk.

Diversification and Risk Management
Reduce Concentration Risk: Invest in other funds or asset classes. This can help spread the risk and potentially increase returns.

Active Management: Actively managed funds can provide better returns. Ensure your investments align with your risk tolerance and financial goals.

Alternatives to Index Funds
Actively Managed Funds: These funds often outperform index funds. They offer better growth potential and professional management.

Disadvantages of Index Funds: Index funds track the market and lack flexibility. Actively managed funds can adjust to market changes.

Regular Fund Investments
Benefits of Regular Funds: Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) provides expert guidance. They offer better fund selection and management.

Disadvantages of Direct Funds: Direct funds require more time and knowledge. Regular funds provide professional advice and management.

Investment Strategy
Review and Adjust: Periodically review your investments. Rebalance to maintain your desired asset allocation.

Investment Goals: Align your investments with your long-term goals. Ensure your portfolio is diversified and well-managed.

Final Insights
Reducing the concentration in a single fund can help manage risk and potentially increase returns. Consider diversifying into other actively managed funds. This will align with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in