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Dev Ashish  |48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Jun 13, 2023

Dev Ashish is a fee-only SEBI-registered investment advisor with over 15 years of active experience in the stock market. In 2011, he founded StableInvestor, a platform for personal finance and financial planning.
He provides professional fee-only investment advisory services to small and high networth individuals in order to help them achieve their financial goals.
Ashish's views are regularly published in national business publications. He has an MBA degree from NMIMS, Mumbai and also holds an engineering degree.... more
Asked by Anonymous - Jun 13, 2023Hindi

Sir, I want to invest 5000 in MF although I am investing 5500 in Ipru multicap , HDFc ELSS, Hdfc TOp 100 now in which fund I should invest

Ans: From what I understand, it seems that you are already investing a total of Rs 5500 per month in the 3 schemes mentioned by you. And now you want to increase the amount by another Rs 5000, thereby taking the total to Rs 10,500 per month. For this monthly investment amount, generally having 1-2 funds/schemes is enough. So you can either increase your SIPs in existing funds or go for Passive Largecap funds or Flexicap 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 likes and take professional investment advice before investing.
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 Kalirajan  |5260 Answers  |Ask -

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

Hi Dev, I,m a defence pensioner and 60 years old. I want to invest Rs 5 lakhs in MF for a duration of 1-3 years, please advise which MF will be better for me. Thanks
Ans: Given your investment horizon of 1-3 years and considering your age and risk profile, it's essential to prioritize capital preservation while aiming for modest returns. Here are some mutual fund options that may suit your investment needs:

Short-Term Debt Funds: These funds invest in fixed-income securities with relatively shorter maturities, providing stability and liquidity. They are suitable for investors looking to preserve capital while generating better returns than traditional savings accounts or fixed deposits. Consider investing in reputable short-term debt funds with a track record of delivering consistent returns and maintaining low volatility.
Liquid Funds: Liquid funds invest in short-term money market instruments with very high liquidity and minimal interest rate risk. They offer stability of capital and can be an excellent option for parking funds temporarily or meeting short-term financial goals. Liquid funds typically have a low expense ratio and can provide relatively higher returns compared to savings accounts or fixed deposits.
Ultra Short Duration Funds: These funds invest in fixed-income securities with short to ultra-short maturities, offering a balance between stability and yield. They can be suitable for investors with a slightly longer investment horizon of 1-3 years who are willing to take on slightly higher risk for potentially higher returns than traditional fixed deposits or savings accounts.
Arbitrage Funds: Arbitrage funds aim to generate returns by exploiting price differentials between cash and derivative markets. They offer relatively low volatility and tax-efficient returns, making them suitable for short-term investments. However, it's essential to note that arbitrage funds are subject to market risks and may not guarantee fixed returns.
Before making any investment decisions, it's advisable to consult with a certified financial planner or investment advisor who can assess your financial goals, risk tolerance, and investment horizon. They can help you select mutual funds that align with your investment objectives and provide personalized guidance based on your unique financial situation. Additionally, carefully review the fund's investment objectives, past performance, expense ratio, and risk factors before investing.

..Read more


Ramalingam Kalirajan  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Asked by Anonymous - Jun 17, 2024Hindi
I am 67 yrs old and I am ready to in equity based M F with high to medium risk appetite I have choosen following MF RS 5000 PM in each 1Quant Small cap fund 2 Nippon India Small cap fund 3.Invesco India PSU Fund 4.Quant Large and Midcap Fund 5. Nippon India power and infrastructure fund 6.Quand Mid cap fund 7.J M Flexicap fund 8.MOS Defence fund(New NFO)
Ans: Investing in equity-based mutual funds can be a wise decision, especially when you have a high to medium risk appetite. It allows you to potentially achieve high returns while diversifying your portfolio. At 67 years old, it’s crucial to choose funds that align with your risk tolerance and financial goals. Your chosen funds reflect a mix of small cap, large cap, mid cap, and sector-specific funds. Let's evaluate and assess your choices, ensuring they align with your investment objectives.

Understanding Equity Mutual Funds
What are Equity Mutual Funds?
Equity mutual funds invest primarily in stocks. They aim to generate high returns by investing in a diversified portfolio of equities. These funds are managed by professional fund managers who make investment decisions based on market research and analysis.

Categories of Equity Mutual Funds
Small Cap Funds: These funds invest in companies with small market capitalizations. They have high growth potential but also higher risk.

Mid Cap Funds: These funds invest in mid-sized companies. They offer a balance between growth potential and risk.

Large Cap Funds: These funds invest in large, well-established companies. They are less risky and offer stable returns.

Sector-Specific Funds: These funds invest in specific sectors like power, infrastructure, or defense. They carry higher risk due to sector concentration.

Advantages of Equity Mutual Funds
Professional Management: Managed by experienced fund managers who make informed investment decisions.

Diversification: Spread investments across various companies and sectors to reduce risk.

Liquidity: Easy to buy and sell, offering high liquidity.

Potential for High Returns: Can provide significant returns over the long term due to stock market growth.

Risks of Equity Mutual Funds
Market Risk: The value of investments can fluctuate due to market conditions.

Sector Risk: Sector-specific funds can be highly volatile if the sector underperforms.

Company Risk: Poor performance of a company can impact the fund's returns.

Evaluating Your Chosen Funds
Small Cap Funds
Potential and Risk
Small cap funds have the potential for high growth but come with increased volatility. They are suitable for investors with a high-risk appetite.

Your Selection
Investing in small cap funds can be a good strategy for long-term growth. However, be prepared for market fluctuations.

Mid Cap Funds
Balance of Risk and Return
Mid cap funds offer a good balance between growth and stability. They invest in companies that are not too small but have significant growth potential.

Your Selection
Mid cap funds can provide moderate risk and reasonable returns. They are a good choice for investors seeking balanced exposure.

Large Cap and Mid Cap Funds
Stability and Growth
These funds combine the stability of large caps with the growth potential of mid caps. They provide a balanced risk-reward ratio.

Your Selection
This blend can help achieve a stable yet growing portfolio, suitable for investors with medium risk appetite.

Sector-Specific Funds
Concentrated Risk and High Reward
Sector funds focus on specific industries. They can offer high returns if the sector performs well but are risky if the sector faces downturns.

Your Selection
Sector-specific funds add diversity but increase risk due to their concentrated nature. They should be a smaller part of your portfolio.

Power of Compounding
How Compounding Works
Compounding is the process where the returns on your investments generate their own returns. Over time, this can lead to exponential growth in your investment value.

Benefits of Compounding
Wealth Accumulation: Compounding helps in building significant wealth over the long term.

Reinvestment: By reinvesting your earnings, you can maximize your returns.

Long-Term Perspective
Investing regularly and staying invested for the long term can harness the power of compounding. This strategy is crucial for achieving substantial growth.

Investing at 67 shows your commitment to growing your wealth. It’s commendable to continue seeking financial growth and security.

Balancing Risk and Reward
It’s essential to balance your risk and reward, especially at your age. Diversifying your investments can help mitigate risks while aiming for higher returns.

Your choice to invest in diverse mutual funds is commendable. It shows a well-thought-out strategy to achieve financial growth.

Analytical Evaluation
Assessing Fund Performance
Regularly assess the performance of your chosen funds. Look at their historical returns, risk factors, and management efficiency.

Diversification Benefits
Diversifying across different categories of funds can help manage risk. It ensures that poor performance in one sector doesn't drastically affect your overall portfolio.

Understanding Market Trends
Stay updated with market trends. It helps in making informed decisions and adjusting your portfolio according to market conditions.

Role of a Certified Financial Planner
Importance of Professional Guidance
A Certified Financial Planner (CFP) can provide valuable insights and advice tailored to your financial goals. They help in selecting the right funds and managing your portfolio efficiently.

Personalized Financial Planning
CFPs offer personalized financial planning based on your risk appetite, investment horizon, and financial goals. They ensure your investments align with your long-term objectives.

Regular Review and Rebalancing
Regular reviews and rebalancing of your portfolio by a CFP ensure that it remains aligned with your goals. They help in making necessary adjustments based on market conditions.

Final Insights
Staying Invested
Staying invested for the long term is crucial for achieving substantial returns. Avoid the temptation to make frequent changes based on short-term market fluctuations.

Diversification and Risk Management
Diversifying your investments across different categories of mutual funds can help manage risk. It ensures a balanced and stable portfolio.

Seeking Professional Advice
Consulting with a Certified Financial Planner can provide valuable guidance. They help in making informed decisions and managing your investments effectively.

Regular Monitoring
Regularly monitor your investments to ensure they are performing as expected. Stay informed about market trends and adjust your portfolio if needed.

Investing in equity-based mutual funds is a wise decision. It offers the potential for high returns and diversification benefits. By understanding the categories, advantages, and risks, you can make informed investment choices. Seek professional guidance to align your investments with your financial goals. Stay invested for the long term and harness the power of compounding.

Invest wisely and secure your financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..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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