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Ulhas

Ulhas Joshi  | Answer  |Ask -

Mutual Fund Expert - Answered on Jun 20, 2023

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
Somashekhar Question by Somashekhar on Jun 01, 2023Hindi
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Sir Iam invested in following mutual funds since last 1 year. Kindly let me know whether it is good to continue. 1.Tata Digital India fund Rs. 50000 2.ICICI pru Nasdaq 100 fund Rs. 50000 3.SBI Nifty next 50 fund Rs. 80000. 4.Motilal Oswal S&P 500 Index fund Rs. 50000. 5.Nippon India multi asset fund Rs. 50000. 6.Nippon India Taxsaver fund Rs. 50000 7.Axis Longterm equity fund SIP Rs. 5000 pm. 8.SBI consumption opportunies fund Rs. 60000 9.SBI Balanced Advantage fund Rs. 50000 10.ICICIPRU Balanced Advantagefund Rs. 25000.

Ans: Hello Somashekhar. Thanks for writing to me. The funds you invest in are good funds.

You have not mentioned any goals or your risk profile. If you can elaborate on them, then I may be able to recommend other funds.

Periodic reassessment of your portfolio and goals is essential to reaching your goals.
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  |8342 Answers  |Ask -

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

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Hello Sir, I have the following Mutual Funds Investments, request you to let me know if these can be continued with or need to discontinue any of them, also please let me know new good performing funds to invest in. One time investment: (1) ICICI/ India Opportunities Fund - Growth - ₹2,50,000, (2) ICICI/ Value Discovery Fund - Growth - ₹2,50,000, (3) ICICI / Transporation & Logistics Fund - Growth - ₹2,00,000 SIP Monthly: (4) Axis Flexi Cap Fund - Regular Plan - ₹5,000, (5) Canara Robeco Emerging Equities - Regular Plan - ₹5,000, (6) Aditya Birla SL Focused Equity Fund(G) - ₹5,000, (7) HDFC Mid-Cap Opportunities Fund(G) - ₹5,000, (8) ICICI Pru Bluechip Fund(G) - ₹5,000, (9) Axis Small Cap Fund - Regular Plan - ₹5,000, (10) ICICI Prudential Technology Fund - Growth - ₹5,000, (11) L&T Midcap Fund - HSBC Midcap Fund - ₹5,000, (12) ICIPRU Multi-Asset Fund - Growth - ₹5,000, (13) ICIPRU Value Discovery Fund - Growth - ₹5,000
Ans: making decisions about investments can be overwhelming, especially when considering the future. It's commendable that you're taking an active interest in managing your portfolio. Remember, investing is a journey, and it's okay to seek guidance along the way. As a Certified Financial Planner, my goal is to help you navigate this journey with confidence and peace of mind.

Reflecting on your current investments and considering adjustments is a wise move. It's essential to evaluate each fund's performance, alignment with your goals, and overall portfolio diversification. While past performance is not a guarantee of future results, it can provide valuable insights into fund management and strategy.

As you explore potential adjustments, keep in mind the importance of staying diversified and monitoring your investments regularly. Don't hesitate to reach out for support or advice as needed. Remember, the journey to financial security is about making informed choices that align with your aspirations and values.

..Read more

Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 06, 2024

Asked by Anonymous - Jun 06, 2024Hindi
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I am having following mutual funds: 1. Quant active - ? 6000 2. PGIM flexi cap -?5000 3.Quant small cap - ?9000 4. Moti lal oswal midcap -?5000 5. Invesco large and mid cap ?4000 6.HDFC large and mid cap ? 5000 Please advise whether I should continue with these funds. Investing since 1/2018
Ans: Evaluating your mutual fund portfolio is essential to ensure it aligns with your financial goals and risk tolerance. Given your current investments and the duration since 2018, let's assess whether you should continue with these funds.

Portfolio Overview
Your mutual fund portfolio consists of:

Quant Active Fund: Rs 6,000
PGIM Flexi Cap Fund: Rs 5,000
Quant Small Cap Fund: Rs 9,000
Motilal Oswal Midcap Fund: Rs 5,000
Invesco Large and Mid Cap Fund: Rs 4,000
HDFC Large and Mid Cap Fund: Rs 5,000
Diversification Analysis
Flexi Cap Funds
Flexi cap funds, like PGIM Flexi Cap Fund, invest across large, mid, and small-cap stocks. They provide flexibility and balance risk with potential high returns. These funds adapt to market conditions, making them a stable choice for your portfolio.

Large and Mid Cap Funds
Invesco and HDFC Large and Mid Cap Funds focus on large and mid-cap stocks. These funds offer a mix of stability and growth potential. Large-cap stocks provide stability, while mid-caps offer growth opportunities.

Mid Cap Fund
The Motilal Oswal Midcap Fund targets mid-sized companies. Mid caps can offer significant growth but are riskier than large caps. This fund adds growth potential to your portfolio.

Small Cap Funds
Quant Small Cap Fund focuses on small-sized companies. Small caps can provide high returns but come with high volatility. Your allocation of Rs 9,000 here indicates a higher risk tolerance for potentially higher rewards.

Active Fund
Quant Active Fund invests actively in various stocks based on the fund manager's strategy. Active funds aim to outperform the market, providing opportunities for higher returns but also involve higher management costs.

Assessing Portfolio Performance
Historical Performance
Evaluate the historical performance of each fund. Compare their returns with benchmark indices and peer funds. Consistently performing funds are more likely to continue delivering good returns. However, past performance is not a guarantee of future results.

Fund Manager Expertise
The experience and track record of fund managers are crucial. Funds managed by experienced managers with a proven track record are more likely to perform well. Check the consistency and strategy of your fund managers.

Expense Ratios
Expense ratios impact your returns. Lower expense ratios mean higher returns for investors. Compare the expense ratios of your funds with industry standards. High expense ratios can erode your returns over time.

Risk Assessment
Market Risk
Equity investments are subject to market risk. Your portfolio has a mix of large, mid, and small-cap funds, which diversifies this risk. However, your high allocation in small caps increases exposure to market volatility.

Sector and Stock Concentration
Check if any funds have high exposure to specific sectors or stocks. Diversification across sectors reduces risk. Ensure no single sector or stock dominates your portfolio.

Liquidity Risk
Certain funds, especially small cap and mid cap funds, can have liquidity issues. Ensure a part of your portfolio remains in highly liquid funds to manage unforeseen needs.

Alignment with Financial Goals
Investment Horizon
You have been investing since 2018, indicating a medium-term horizon. Equities are suitable for long-term investments due to their potential for higher returns. Ensure your investment horizon aligns with your financial goals, such as retirement or children's education.

Risk Tolerance
Your portfolio indicates a higher risk tolerance, especially with significant allocation in small and mid-cap funds. Assess if this risk level matches your financial goals and comfort. If you prefer stability, consider increasing allocation in large-cap funds.

Strategic Adjustments
Rebalancing
Rebalance your portfolio periodically to maintain desired asset allocation. Over time, some funds may outperform, skewing your allocation. Rebalancing ensures your portfolio remains aligned with your risk tolerance and goals.

Adding New Funds
Consider adding new funds to enhance diversification. Explore funds in other categories like balanced funds, international funds, or sector-specific funds. This can capture opportunities in different market segments and reduce risk.

Reviewing Fund Performance
Regularly review the performance of your funds. If a fund consistently underperforms, consider replacing it with a better-performing fund. Stay updated with market trends and adjust your strategy accordingly.

Tax Efficiency
Tax Benefits
Equity investments enjoy favorable tax treatment. Long-term capital gains (LTCG) from equity funds are taxed at a lower rate compared to other asset classes. Consider the tax implications of your investments.

Tax-saving Instruments
If you are investing in tax-saving mutual funds (ELSS), you get additional tax benefits under Section 80C. This reduces your taxable income and enhances post-tax returns. Consider these options if they align with your goals.

Seeking Professional Advice
Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized advice based on your financial situation, goals, and risk tolerance. Professional guidance ensures your investment strategy remains robust and aligned with your objectives.

Summary of Recommendations
Continue with diversified funds: Your portfolio has a good mix of flexi cap, large, mid, and small-cap funds, providing balanced risk and growth potential.
Rebalance periodically: Adjust your portfolio to maintain desired asset allocation and manage risk.
Add new funds: Enhance diversification with balanced, international, or sector-specific funds.
Review performance: Regularly monitor your funds and replace underperforming ones.
Consult a CFP: Get personalized advice for tailored investment strategies.
By maintaining a strategic approach, rebalancing your portfolio, and seeking professional advice when needed, you can achieve your financial goals and secure a prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

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

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I have the following mutual funds: 1. Quant Small cap 5000 Rs SIP 2. Canara Robecco small cap 5000 Rs SIP 3. ICICI Pruential Commodity fund 2500 Rs SIP 4. UTI BSE housing index fund 3500 Rs SIP Please suggest me whether to continue it?
Ans: Evaluating Your Current Mutual Fund Investments
Overview of Your Investments
Quant Small Cap: Rs 5000 SIP
Canara Robecco Small Cap: Rs 5000 SIP
ICICI Prudential Commodity Fund: Rs 2500 SIP
UTI BSE Housing Index Fund: Rs 3500 SIP
Small Cap Funds
Quant Small Cap and Canara Robecco Small Cap: Both are small-cap funds. They can offer high returns but come with higher risks.
Suggestion: Diversify into other categories to balance risk.
Sector-Specific Funds
ICICI Prudential Commodity Fund: Commodity funds can be volatile and are influenced by commodity prices.
UTI BSE Housing Index Fund: Sector funds like housing can be cyclical and risky.
Suggestion: Consider reducing allocation in sector-specific funds to mitigate risk.
Diversification
Current Mix: Heavily invested in small-cap and sector-specific funds.
Ideal Mix: Include large-cap, mid-cap, and multi-cap funds for balanced risk and return.
Long-Term Goals
Risk Appetite: High-risk funds should align with your risk tolerance and investment horizon.
Suggestion: If your goal is long-term growth, maintaining a diversified portfolio is essential.
Actively Managed Funds vs. Sector Funds
Sector Funds: High risk due to dependency on specific sectors.
Actively Managed Funds: Can provide balanced exposure and manage risks effectively.
Suggestion: Prefer actively managed funds for a balanced portfolio.
Professional Guidance
Certified Financial Planner: Regular reviews with a certified planner can help align your portfolio with financial goals.
Adjustments: Timely adjustments based on market conditions and personal goals are crucial.
Recommendations
Reduce Sector Exposure: Reduce or eliminate high-risk sector funds.
Diversify: Add large-cap, mid-cap, and multi-cap funds to your portfolio.
Review Regularly: Regularly review your portfolio with a certified financial planner.
Final Insights
Balancing your portfolio with diversified funds can help manage risks better. Align your investments with your risk appetite and long-term goals. Regular reviews and adjustments are crucial for a healthy financial strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2025

Asked by Anonymous - May 13, 2025
Money
Greetings!!!! I am 43 years Old, I had started 10k per month TATA AIA SIP in previous year for total 7years Plan. I want to education plan for my 1 kid who is 6 years old now. Please advice and guide me about more investments plan, as i am still confused about future growth and any plan for my wife age 38years.
Ans: You're at a critical financial stage. Planning for your child’s education and securing your family’s future are both top priorities. You've already started a ULIP, which is a start. But let’s take a deeper 360-degree view of your situation.

Below is a detailed plan, broken into simple sections for better clarity.



Assessment of Your Current ULIP Investment

You're investing Rs. 10,000 per month in a 7-year ULIP.



ULIPs mix insurance with investment. That reduces the growth power of your money.



Charges like premium allocation, fund management, and mortality charges reduce returns.



Your actual invested amount is much lower in the first few years.



ULIPs have limited flexibility in fund switching and partial withdrawal rules.



Maturity benefits are taxed if the annual premium exceeds Rs. 2.5 lakh. Be cautious of this.



A ULIP is not ideal for education goals or long-term wealth building.



As a Certified Financial Planner, I suggest surrendering this policy and moving funds to mutual funds.



You can continue till 5 years to avoid surrender charges if already started.



But do not renew after the 7-year term. Don't increase contributions in this ULIP.



Planning for Your Child’s Higher Education

Your child is 6 years old. You have around 11-12 years.



College education in India or abroad can cost Rs. 30–60 lakhs or more.



Instead of ULIPs, invest in diversified mutual funds. This will give better inflation-adjusted returns.



Use a mix of large cap, flexi cap and small cap mutual funds.



Start SIPs in these funds with a long-term horizon of 10-12 years.



You may also consider goal-based child education funds that are actively managed.



Don't invest in direct funds. They look cheaper, but don’t offer guidance.



Always invest through a Certified Financial Planner via a regular plan.



Your investment will stay aligned with your goal as the planner will guide with rebalancing.



Use a dedicated SIP only for child’s education goal. Don’t merge it with retirement planning.



Suggested Action Plan for Child’s Education

Shift future contributions from ULIP to SIPs in active funds.



Start with Rs. 20,000 per month SIP only for education.



Review this SIP every year and increase it by 10%-15% annually.



Add lump sums like bonuses or yearly increments into the same goal fund.



In the last 2 years before the education goal, shift to debt funds slowly.



This will protect your accumulated amount from equity volatility.



Investment Plan for Your Wife (Age 38)

She has a long horizon. She can invest for both retirement and her independent needs.



Open a separate mutual fund folio in her name.



Start SIPs in flexi cap, large & midcap, and hybrid funds in regular plans.



You can start with Rs. 10,000 per month and increase gradually.



You may also use her PPF account for additional tax-free corpus.



Avoid investing in gold, insurance policies, or real estate for her.



Ensure she has her own health insurance and a term insurance if she’s working.



If she’s not working, then create an emergency fund in her name.



That gives her independence and safety if she needs cash.



Family Protection with Insurance

You did not mention your term cover. You must have it if not already.



Ideal cover should be 15–20 times your yearly income.



ULIPs or LIC endowment policies should not be considered for protection.



Avoid investment-linked insurance plans. Keep insurance and investment separate.



Review your existing insurance covers. Add riders like critical illness and accident if needed.



Tax Efficient Planning

Use Section 80C wisely. Don’t just rely on ULIP or LIC plans.



Max out PPF, ELSS mutual funds, and children tuition for tax saving.



Invest in actively managed ELSS funds for better returns than ULIPs.



Avoid index funds for tax planning. They may underperform in volatile markets.



Debt funds are taxed as per slab now. Use carefully if short horizon.



Track capital gains if you sell mutual funds. Use new tax rules for equity funds:



  - LTCG above Rs. 1.25 lakh taxed at 12.5%

  

  - STCG taxed at 20%



Plan redemptions well in advance to manage taxes efficiently.



Retirement Planning (For You and Wife)

Start a separate SIP for your retirement corpus. Do not merge with other goals.



You have 17 years for retirement. That’s good for wealth accumulation.



Invest in a mix of actively managed flexi-cap and large-cap funds.



Add hybrid funds to reduce volatility as you near retirement.



Continue EPF, and increase VPF if possible. It is tax-free and safe.



Don't consider NPS if liquidity is important. Maturity rules are rigid.



Use mutual funds with regular advice to stay on track till age 60.



Exit ULIPs and Poor Insurance Products

You mentioned TATA AIA ULIP. Continue for 5 years to avoid penalty.



After that, exit and move funds to SIP in mutual funds.



If you or wife have LIC endowment, Jeevan Saral, or ULIPs, surrender them.



Reinvest maturity amount into SIPs in regular mutual fund plans.



Do not fall for insurance agents who pitch plans as tax saving or guaranteed.



Emergency Fund and Liquidity

Keep at least 6 months of family expenses in a liquid mutual fund.



Don’t use your SIP or education fund as emergency source.



You may open a separate savings bank linked sweep account for this.



This fund will help if there is any job loss, health issue, or urgent need.



What Not to Do

Don’t invest in new ULIPs or insurance-linked plans.



Avoid direct mutual fund investments. You won’t get guided rebalancing.



Do not use your child’s education fund for house down payment.



Don’t pick index funds. They underperform in sideways or bear markets.



Don’t buy land or gold as an investment for your goals.



Final Insights

You are at a very strategic life stage. You have time and income strength.



ULIPs will not help you grow wealth. Shift to goal-based mutual fund SIPs.



Separate goals: child education, your retirement, wife’s security, and emergencies.



Invest only through a Certified Financial Planner for customised long-term support.



Review all goals every year. Increase SIPs with income.



Protect family with pure term insurance and health insurance.



Focus on building wealth in regular mutual funds, not through insurance products.



Real financial freedom comes when goals are funded without stress.



You have a clear head start. Use it with discipline and right guidance.



Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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