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Should I Invest in Axis Bank Bajaj Allianz Pure Stock Fund for 5 Years?

Ramalingam

Ramalingam Kalirajan  |8320 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 19, 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
Asked by Anonymous - Apr 18, 2025Hindi
Money

Dear Sir, IAM planning to Axis bank Bajaj Allianz pure stock fund, annual investment 1lac till 5 years, what are benefit out it Plz advise this a wise decision to invest. Thanks & Regards Mysore

Ans: You are planning to invest Rs. 1 lakh annually for 5 years in a pure equity mutual fund from a reputed AMC.

Let us assess your decision with a 360-degree view.

We will evaluate the benefits, risks, and alignment with your goals.

We will also check if this is a wise and suitable decision for you.

We appreciate your discipline in thinking long-term.

Let’s now explore this in detail.

 

Investment Approach
You are choosing an actively managed mutual fund.

 

This is better than passive index investing.

 

Actively managed funds aim to beat the market returns.

 

Professional fund managers analyse and pick quality stocks.

 

This is better than index funds, which just copy the market.

 

Index funds cannot avoid poor performing stocks.

 

Active funds adjust to changing market trends faster.

 

You also get risk management strategies in active funds.

 

Investment Tenure
You plan to invest for 5 years.

 

This is a decent time frame for equity mutual funds.

 

Equity funds can be volatile in the short term.

 

But over 5 years, chances of earning better returns improve.

 

Staying invested during ups and downs is key.

 

Compounding also works better when you stay longer.

 

Please try to extend beyond 5 years if possible.

 

Longer holding brings more tax efficiency and better growth.

 

Investment Amount
You are planning Rs. 1 lakh per year.

 

That’s Rs. 5 lakhs in 5 years.

 

Investing in lump sum or SIP both are fine.

 

SIP helps reduce the average cost per unit.

 

It also builds investment habit and removes timing worries.

 

If investing lump sum, divide into 4–5 tranches over months.

 

Risk Factors
Pure equity funds are linked to stock market performance.

 

They are affected by domestic and global events.

 

Short term can have negative or low returns.

 

But long term investors usually benefit more.

 

You should be mentally prepared for short-term losses.

 

Never panic or redeem early due to volatility.

 

Equity is not for those needing fixed or assured returns.

 

Patience is the most important quality here.

 

Taxation of Mutual Funds (As per New Rules)
If you sell before 1 year, gains are called short-term capital gains.

 

These are taxed at 20% as per new rule.

 

If you sell after 1 year, and gain above Rs. 1.25 lakh, tax is 12.5%.

 

Gains below Rs. 1.25 lakh are tax-free.

 

You can use the Rs. 1.25 lakh limit each financial year.

 

This makes mutual funds more efficient than many other options.

 

Insurance-cum-Investment Policies
If you also hold ULIP or LIC investment-linked plans, do review them.

 

Such policies often give low returns and high costs.

 

They mix insurance and investment in one product.

 

This is not suitable for long-term wealth creation.

 

You may consider surrendering those and switch to pure mutual funds.

 

Invest separately for protection (term plan) and wealth (mutual fund).

 

Role of a Mutual Fund Distributor with CFP
You mentioned a fund from a reputed AMC.

 

You may choose a Regular plan through a CFP-certified MFD.

 

A Certified Financial Planner gives goal-based planning.

 

They help you choose right asset allocation for your goals.

 

They guide during market cycles and emotional investing errors.

 

Regular funds include cost for their services.

 

Direct plans lack this support and guidance.

 

Many investors in direct plans take wrong decisions alone.

 

Regular plan with CFP gives personalised advice and reviews.

 

Asset Allocation & Diversification
Do not invest 100% in a single equity fund.

 

Diversify across 2–3 equity funds with different styles.

 

You can include large cap, flexi cap, or mid cap category.

 

This reduces risk from underperformance of any one fund.

 

Also keep part of your portfolio in short-term debt funds.

 

Debt funds help in emergencies or short-term needs.

 

They also reduce overall portfolio volatility.

 

Goal Alignment
What is the purpose of this investment?

 

Is it for retirement, child education, house down payment?

 

If you define the goal, planning becomes stronger.

 

You can choose fund types based on goal duration.

 

You will also know how much to invest each year.

 

This creates clarity and motivates regular investing.

 

Benefits of Your Decision
You are investing regularly for 5 years.

 

This is better than keeping money in savings or FD.

 

Mutual funds give higher growth potential than bank products.

 

Your money gets managed by professionals.

 

It helps you beat inflation in long term.

 

You don’t need to track stock market daily.

 

Low minimum investment and high liquidity are extra benefits.

 

You can withdraw anytime if needed.

 

Few Points to Remember
Review your investment once a year with a CFP.

 

Rebalance the portfolio based on goal changes.

 

Avoid timing the market or chasing top funds.

 

Stay away from hot tips or media hype.

 

Focus on consistent investing and patience.

 

Track fund performance with right benchmarks, not just NAV growth.

 

Final Insights
Your plan shows good financial discipline.

 

You have chosen a strong long-term wealth creation path.

 

Mutual funds can offer superior growth compared to many traditional tools.

 

Choosing actively managed funds is wise for better returns.

 

Take support of a CFP to make your journey smoother.

 

Diversify well and invest with clear purpose.

 

Stay consistent and avoid emotional decisions.

 

Wealth creation is a slow and steady process.

 

With right strategy, your goal will be achieved peacefully.

 

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.
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Hi.. I have SIP in HDFC Balanced advantage fund -3600/-, Tata Retirement saving fund -progressive plan -6300/-,Parag Parikh flexi cap -3600/- & Mirae asset emerging blue chip fund -2500/- since last 5 years.Can you please suggest me about the funds allocated shall provide good wealth in long time orgin as 15 years.or else any changes to be implemented. G.MuraliKrishna
Ans: Hello Mr. G. MuraliKrishna,

Let's review your SIP investments in HDFC Balanced Advantage Fund, Tata Retirement Saving Fund - Progressive Plan, Parag Parikh Flexi Cap Fund, and Mirae Asset Emerging Blue Chip Fund with a focus on long-term wealth creation over a 15-year horizon.

Portfolio Review:

HDFC Balanced Advantage Fund:
This fund follows a dynamic asset allocation strategy between equity and debt, aiming to capitalize on market opportunities while managing risk.
Tata Retirement Saving Fund - Progressive Plan:
This retirement-focused fund aims to provide growth through equity investments while gradually reducing equity exposure as you approach retirement.
Parag Parikh Flexi Cap Fund:
This fund offers flexibility to invest across market caps and sectors, focusing on long-term growth potential with a blend of domestic and international equities.
Mirae Asset Emerging Blue Chip Fund:
This fund focuses on emerging blue-chip companies with high growth potential, aiming to generate superior returns over the long term.
Recommendations:

Review Asset Allocation:
Ensure your portfolio's asset allocation aligns with your risk tolerance and investment horizon. A balanced approach with a mix of equity and debt can provide stability while capturing growth opportunities.
Emphasize Long-Term Growth:
Focus on funds with a strong track record of long-term performance and a proven ability to generate wealth over time. Funds like Parag Parikh Flexi Cap Fund and Mirae Asset Emerging Blue Chip Fund have demonstrated potential for long-term growth.
Consider Regular Reviews:
Periodically review your portfolio's performance and make necessary adjustments to ensure it remains aligned with your financial goals and market conditions.
Continue SIPs with Discipline:
Continue your SIPs with discipline and consider increasing contributions over time to benefit from the power of compounding. Regular investing can help navigate market volatility and capture growth opportunities.
Conclusion:

Your current SIP investments are diversified and well-suited for long-term wealth creation. Emphasizing long-term growth with a focus on funds like Parag Parikh Flexi Cap Fund and Mirae Asset Emerging Blue Chip Fund can potentially enhance your wealth over a 15-year horizon.

Regularly reviewing your portfolio's performance, ensuring a balanced asset allocation, and maintaining discipline in your SIP contributions are key to achieving your financial goals. Consider consulting with a Certified Financial Planner to personalize your investment strategy and navigate market dynamics effectively.

Remember, investing is a journey, and patience, discipline, and regular reviews are crucial for long-term success. Embrace this journey with confidence and commitment, and may your investments flourish over the years.

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Ramalingam

Ramalingam Kalirajan  |8320 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Asked by Anonymous - Mar 01, 2024Hindi
Money
Asked on - Mar 01, 2024 We have disabled son so we want invest in this fund for next 40 years Now I am 35 years old and my wife is 32 years old . Our combined monthly income is 2 lakh. We have 40 lacs in the hand which we have started our investment in below funds from this year. Parag parikh flexi cap fund Nippon india Small cap fund Icici value discovery fund HDFC mid cap opportunities fund Quant mid cap fund icici nifty 50 index fund Please let me know if it's good to invest in this fund.
Ans: Thank you for sharing your investment details and financial goals. It's commendable that you and your wife are planning for the long term, especially considering the needs of your disabled son. Let's analyze your current investments and provide guidance to ensure you meet your financial objectives over the next 40 years.

Current Investment Overview
1. Investment Horizon
You have a long investment horizon of 40 years, which is excellent for wealth accumulation. Long-term investments in equity mutual funds can yield significant returns due to the power of compounding.

2. Monthly Income and Lump Sum Investment
Your combined monthly income is Rs. 2 lakhs, and you have a lump sum of Rs. 40 lakhs that you've started investing this year. This strong financial base allows you to make substantial investments regularly.

3. Selected Mutual Funds
Parag Parikh Flexi Cap Fund
Nippon India Small Cap Fund
ICICI Value Discovery Fund
HDFC Mid Cap Opportunities Fund
Quant Mid Cap Fund
ICICI Nifty 50 Index Fund
Portfolio Analysis
1. Diversification
Your portfolio includes a mix of large cap, mid cap, small cap, value, and index funds. This diversification helps spread risk and capture growth across different segments of the market.

2. Fund Selection
Parag Parikh Flexi Cap Fund: Known for its flexibility to invest across market caps and international stocks.
Nippon India Small Cap Fund: Focuses on small cap stocks, offering high growth potential but with higher volatility.
ICICI Value Discovery Fund: Concentrates on undervalued stocks, aiming for long-term capital appreciation.
HDFC Mid Cap Opportunities Fund and Quant Mid Cap Fund: Invest in mid cap stocks, balancing growth potential and risk.
ICICI Nifty 50 Index Fund: Provides exposure to the top 50 companies in India, offering stability and diversification.
Evaluating and Optimizing Your Portfolio
1. Consider Actively Managed Funds
While index funds like ICICI Nifty 50 Index Fund offer low costs, actively managed funds can potentially outperform by selecting high-quality stocks. Given your long horizon, consider focusing more on actively managed funds with strong track records.

2. Balance Between Risk and Return
Your portfolio has a good mix, but small cap and mid cap funds can be volatile. Ensure you balance them with more stable options to manage risk, especially considering your son's long-term needs.

3. Regular Review and Rebalancing
Regularly review your portfolio to ensure it stays aligned with your goals. Rebalancing helps maintain the desired asset allocation, especially as market conditions change.

Financial Planning for Your Son
1. Special Needs Trust
Consider setting up a special needs trust to ensure financial security for your son. This trust can manage and protect the assets for his benefit.

2. Insurance Coverage
Ensure you have adequate life and health insurance coverage. This provides financial protection in case of unforeseen events.

3. Emergency Fund
Maintain an emergency fund to cover at least 6-12 months of expenses. This fund acts as a safety net for unexpected financial needs.

Consulting a Certified Financial Planner
1. Personalized Financial Advice
A Certified Financial Planner (CFP) can provide personalized advice tailored to your family's unique financial situation and goals.

2. Expert Investment Management
A CFP can help manage and optimize your investment portfolio, ensuring it remains aligned with your long-term objectives.

3. Risk Management Strategies
A CFP employs strategies to manage risk and optimize returns, helping you navigate market volatility and safeguard your investments.

Long-Term Investment Strategy
1. Regular SIP Contributions
Consider starting a Systematic Investment Plan (SIP) with a portion of your monthly income. Regular SIP contributions help in rupee cost averaging and building wealth over time.

2. Increasing SIP Amounts
Gradually increase your SIP amounts as your income grows. This strategy ensures that your investments keep pace with inflation and enhance your corpus.

3. Focus on Growth-Oriented Funds
Given your long-term horizon, focus on growth-oriented mutual funds with a strong track record. This includes diversified equity funds, mid cap funds, and flexi cap funds.

Example Projection
Assuming an average annual return of 12%, let’s project the potential growth of your investments over 40 years. This simplified projection can illustrate how your disciplined investment strategy can achieve substantial wealth.

Conclusion
Your disciplined approach to investing and long-term horizon position you well to achieve your financial goals. By focusing on quality funds, maintaining diversification, and regularly reviewing your portfolio, you can optimize your investment strategy.

Consulting with a Certified Financial Planner will provide you with personalized advice and expert management to ensure your investments stay on track. Your commitment to regular SIP contributions and increasing your investment amounts over time will significantly enhance your financial security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

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Dear Sir, as my son Inter bord got 91% but in Jee mains 1st attempt got 50% and 2nd attempt got 70%, but he was not eligible for Advance, and he was wrote other college exams as (IIIT Hyd + VIT+TSEAPCET) in that VIT got results as 1.20 Lakh rank and he was eligible for Round of Category of 5th for VIT-AP & VIT-Bhopal, and expecting results for IIIT Hyd and also waiting for other Exams as (COMEDK + MIT + BITS), he was sincerely trying the efforts private college entrance exams, but the results which is not satisfy for him, and getting disappoint, but I was giving the motivation for other exams and do the hard work and focus on, BITS & IIT-Hyd also very tuff and more competitive, as i need to think for the negative side, if he could not get any cut of marks, what is the next option....? I request you pls give any other alternate suggestions for which is alternate engineering university for the course of (CSE AI & ML), my son interested in CSE course only
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can i get admission in NFSU through jee mains score only ? because i gone on NFSU admission portal link for B.Tech-M.Tech Integrated program in Computer Science and Engineering (Cyber Security) but they asking about NFAT exam
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I apologize for any confusion, but I want to clarify that when the government asked for our support of the ONE NATION ONE CARD system, we did not accept it. Similarly, everyone is required to open a savings account at a bank, and many of us expressed our discontent. However, we can see the positive changes happening in India. If we support the government, they will reciprocate by providing benefits to the citizens.

In terms of education, the government is attempting to implement a new education policy, which has proven to be quite difficult. The education system has changed significantly before and after the pandemic. Now, the government is working on new policies that align with those of developed countries.

Therefore, we cannot expect the ONE STUDENT ONE EXAM system from the government at this time, as it is not included in the current guidelines. Each council or organization has its own set of guidelines, and synchronizing them will take time. At this moment, it is simply not feasible.

The NFAT exam is different from the JEE. In the case of the JEE, they did not notify the aspirants that they are eligible to apply for NFSU, and similarly, NFSU did not mention that JEE rank holders could also apply. Therefore, if you want admission to NFSU, you need to register and appear for the NFTA.

In the near future, we can expect the ONE STUDENT ONE EXAM system from this BJP government for the benefit of younger generations. For the benefit of postgraduate aspirants (for all courses except a few professional ones), the NTA is organizing the PGCUET exam nationwide. In this exam, you can opt for up to four different courses based on your eligibility.

A similar exam pattern is needed for engineering and medical fields as well. As I mentioned, we can expect this change; however, we, as citizens, should offer moral support for the benefit of younger generations. Unfortunately, we often do not provide this support to the government. For example, in the NEET exam, many aspirants do not follow the guidelines even when appearing for the exams.
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Hello sir I have taken a 1 year drop for neet 2025 from pw online . But now I am scoring only 300 in neet .Now i am very confused what to do should I take one more drop or chose any option. This time i want to join offline coaching and really want to work hard but afraid that the coaching centre after knowing my marks will give me their worst batch so what should i do ?
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You mentioned that you scored only 300 in NEET. While we can't make any judgments until the official results are published, I must say that a score of 300 is quite low.

If you're planning to reappear for NEET, that's a good decision! However, I understand you might be worried about the coaching classes placing you in a less suitable batch. I recommend attending for 2 or 3 days while attending the coaching just follow the below instructions.

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Alternatively, you can prepare 10 questions on your own and seek answers from your coaching faculty. If you maintain this practice throughout the course, you'll build your confidence, and the coaching staff may consider changing your group due to your proactive approach in asking questions.

Through NEET, you can also pursue other medical-related courses such as BAMS, BSMS, BHMS, BYMS, BNYS, and BDS.

If you don’t have confidence in yourself, you might consider dropping NEET and exploring other courses. However, I encourage you to take one chance and follow my suggestions.

Additionally, if you are not already practicing yoga and meditation, I recommend starting. These activities can help you concentrate better and reduce distractions while studying.

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NEET, Medical, Pharmacy Careers - Answered on May 06, 2025

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Hlo I have taken a 1 year drop in 2024 for neet but i am scoring only 300 . Now I am so confused what to do I really want to crack neet and this time i want to join offline coaching but afraid that i can do it or not Please tell me what to do
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Good decision! Offline coaching is far better than online coaching because it allows you to focus on your studies more effectively.

You mentioned that you need to crack the exam, so here are some tips on how to do that:

First, identify which subjects and chapters you find challenging and make a list. Discuss these areas with your coaching faculty. Aim to ask at least 10 questions daily to clarify your doubts and enhance your understanding.

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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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