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Kirtan

Kirtan A Shah  |77 Answers  |Ask -

MF Expert, Financial Planner - Answered on Sep 22, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more
Nitiksha Question by Nitiksha on Sep 06, 2023Hindi
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Can one invest in multiple asset classes using one Mutual Fund scheme???

Ans: Ofcourse, Mutual Funds can give you opportunities to invest in the below,

- Domestic Equity
- International Equity
- Gold
- Silver
- Fixed Income / Debt
- Real Estate
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  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 22, 2024

Asked by Anonymous - Sep 22, 2024Hindi
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I have 3 mutual funds (growth type) through an agent; can I buy another new direct mutual fund using the same registered details?
Ans: Mutual fund investments come with various ways to invest—through a distributor or directly. Since you already have three mutual funds (growth type) through an agent, you might wonder if adding a direct mutual fund using the same registered details is possible.

Yes, you can invest in a direct mutual fund with the same details. However, there are some key factors you should consider before switching or adding to your existing portfolio.

Disadvantages of Direct Mutual Funds
Let’s evaluate the drawbacks of investing directly in mutual funds:

Lack of Professional Guidance: Direct mutual funds do not offer the support and advice of a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD). A good MFD understands the market better than most individual investors and can guide you through various market cycles.

Time-Consuming: Investing directly in mutual funds requires constant monitoring of your portfolio. You need to make decisions on rebalancing, switching, and asset allocation on your own, which can take up a lot of your time.

Emotional Decisions: Direct investors tend to make impulsive decisions, especially during volatile market conditions. A certified professional helps maintain discipline and prevent emotional reactions that could lead to potential losses.

Missed Opportunities: Many direct investors miss out on changes in the market that could benefit their portfolio. MFDs often have real-time market insights that can add significant value to your investments.

Benefits of Regular Mutual Fund Investment Through a Professional MFD
When you invest through a certified MFD, there are multiple advantages that you may miss with direct mutual fund investing:

Expertise and Advice: MFDs offer expert advice, helping you make informed decisions. They guide you in fund selection based on your financial goals, risk appetite, and investment horizon.

Customized Portfolio Management: An MFD will offer tailor-made portfolio suggestions, ensuring that you diversify your investments across various sectors, ensuring long-term growth and stability.

Ease of Investment: Investing through an MFD takes the hassle out of managing your portfolio. The MFD handles documentation, updates you on market trends, and helps rebalance your portfolio when necessary.

Tax Planning: A professional MFD helps you choose tax-efficient funds that align with your financial goals. They can guide you to make tax-saving investments without compromising your long-term financial growth.

Emotional Shield: During market volatility, MFDs keep you grounded. They guide you through tough times and help you avoid impulsive decisions based on short-term market fluctuations.

Concern About Your Current Agent?
If you are uncomfortable with your current agent or feel they are not adding enough value, it’s best to find a new professional. Certified MFDs offer better services and personalized support, adding more value to your investments. Switching to a more qualified professional is always an option.

It’s vital to have an agent who works in your best interest, is transparent with fees, and offers insightful recommendations. You can transfer your existing portfolio to a new MFD with ease, ensuring you still get professional support for your investment journey.

Additional Considerations
Review Your Financial Goals: Your financial goals play a crucial role in determining the right investment strategy. Ensure that your MFD understands your objectives, whether they are wealth creation, retirement planning, or child education.

Diversify Your Portfolio: It’s important to spread your investments across asset classes like equity, debt, and gold for a balanced portfolio. A Certified Financial Planner can help you decide the right asset allocation.

Rebalancing Your Portfolio: Regular rebalancing helps keep your investments aligned with your goals and market conditions. A professional MFD will provide advice on when and how to rebalance your portfolio for optimal performance.

Stay Disciplined: Investments are for the long term. Having a certified professional guide you will help ensure that you stay on course, even during market volatility.

Final Insights
Investing through a professional MFD offers significant advantages over direct mutual fund investing. It ensures that your portfolio is well-managed, aligns with your financial goals, and offers expert guidance on making the best investment decisions. If you are dissatisfied with your current agent, it’s best to switch to a more experienced professional who can add value to your investment strategy.

While direct mutual funds may seem like a cost-effective option, they lack the guidance, insight, and strategic planning that comes with investing through a Certified Financial Planner.

By aligning your investments with a certified professional, you can ensure that your portfolio is not only well-managed but also optimized for growth, risk management, and long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Instagram: https://www.instagram.com/holistic_investment_planners/

..Read more

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Samraat

Samraat Jadhav  |2248 Answers  |Ask -

Stock Market Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 02, 2025Hindi
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I have been investing in shares for several years and have seen good returns, but with increasing market volatility, I'm considering diversifying into international stocks or alternative assets. What are the potential benefits and risks of each approach?
Ans: Diversifying into international stocks and alternative assets can be a strategic move, especially given your experience in financial analysis and investment planning. Here’s a breakdown of the benefits and risks of each approach:
International Stocks
Benefits are as follows:
- Diversification – Investing globally reduces dependence on domestic market conditions and spreads risk
- Access to High-Growth Markets – Some international markets, particularly emerging economies, may offer higher growth potential.
- Currency Appreciation – If the foreign currency strengthens against the INR, your returns could increase.
- Exposure to Leading Industries – Developed markets like the U.S. provide access to top tech, healthcare, and finance companies.

Risks involved in international markets are as follows:
- Currency Fluctuations – Exchange rate volatility can impact returns.
- Political & Economic Risks – Foreign regulations, trade policies, and economic instability can affect investments.
- Higher Transaction Costs – International investing often involves additional fees and taxes.
- Limited Information Access – Researching foreign companies may be more challenging compared to domestic firms.

Alternative Assets (Real Estate, Commodities, Private Equity, etc.)
Following are the benefits:
- Low Correlation with Stock Markets – Alternative assets often move independently of traditional markets, helping mitigate volatility.
- Inflation Hedge – Real assets like gold and real estate tend to retain value during inflationary periods.
- Potential for High Returns – Private equity and hedge funds can offer substantial gains if managed well.
- Portfolio Customization – Some alternative investments allow direct control, such as real estate or private businesses.

Risks involved are as follows:
- Illiquidity – Many alternative assets, such as private equity and real estate, are not easily sold.
- Complexity – These investments often require specialized knowledge and due diligence.
- Higher Fees – Alternative investments may have higher management costs and entry barriers.
- Market Uncertainty – Some assets, like cryptocurrencies, can be highly volatile.

Given your methodical approach to financial planning, you might find international ETFs a convenient way to gain global exposure while managing risk. Similarly, REITs or commodity funds could be a structured way to enter alternative assets without direct ownership complexities.

...Read more

Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

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I'm now 68 years old. Living with my wife. I have 2 daughters. Both are well settled. I don't have any liability. I'm a pension holder. I'm getting Rs 75,000/- pension pm. I have invested Rs1,50,00,000 in FD. 7lakhs in Mutual funds, 6,50,000 in equity. 12 Lakhs in Sovereign Gold Bond, I'm getting Rs 35,000/- House rent pm. I have 25 lakhs Cash in hand. I want to deposit the above amount. How can I diversified the above amount to deposit?
Ans: Your financial position is strong. You have a steady pension and rental income. Your investments are diversified across FDs, mutual funds, equity, and gold bonds. Let’s allocate your Rs. 25L wisely.

Emergency Fund Allocation
Keep Rs. 5L in a high-interest savings account.

Use a liquid mutual fund for another Rs. 3L for easy access.

This ensures quick access to funds in case of unexpected expenses.

Debt Investment for Stability
Invest Rs. 7L in a mix of short-term and medium-term debt mutual funds.

These offer better post-tax returns than FDs.

Choose high-quality funds with stable performance.

Equity Investment for Growth
Allocate Rs. 5L to large-cap mutual funds via SIP.

This ensures gradual market participation and reduces risk.

Avoid direct stocks for this amount, as mutual funds offer better risk management.

Gold Investment for Inflation Hedge
You already have Rs. 12L in Sovereign Gold Bonds.

No additional gold investment is needed.

Regular Income Investment
Invest Rs. 5L in SWP-based mutual funds for periodic withdrawals.

This provides additional income while keeping capital appreciation intact.

Final Insights
Your current portfolio is well-structured. This allocation balances liquidity, stability, and growth. Your pension and rental income provide financial security. Diversifying your Rs. 25L ensures better returns while maintaining risk control.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

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Sir kindly suggest some mf for steady return for 5 yr in SIP in large cap
Ans: Investing in large-cap mutual funds through SIP is a stable choice. These funds focus on established companies with strong financials. They offer consistent growth with lower risk compared to mid-cap and small-cap funds.

Let’s assess how to select the right fund.

Why Large-Cap Funds for Five Years?
Invest in top companies with proven stability.

Less volatile than mid-cap and small-cap funds.

Suitable for a five-year investment horizon.

Provide inflation-beating returns over time.

Ideal for steady compounding with SIP investments.

Actively Managed vs. Index Funds
Actively managed funds outperform index funds in varying market conditions.

Fund managers adjust portfolios based on market trends.

Index funds only replicate the market and cannot outperform it.

Actively managed funds provide better downside protection.

For five-year investments, active management ensures stable performance.

Choosing the Right Fund
Look for funds with a history of stable returns.

Ensure the fund has an experienced fund manager.

Avoid funds with frequent manager changes.

Select funds with lower expense ratios among actively managed ones.

Check the rolling returns of the fund, not just past performance.

Tax Considerations
Long-term capital gains (LTCG) above Rs. 1.25 lakh taxed at 12.5%.

Short-term capital gains (STCG) taxed at 20%.

SIP investments held for over one year qualify for LTCG benefits.

Plan withdrawals strategically to reduce tax burden.

Final Insights
Large-cap mutual funds are suitable for stable returns over five years. They balance risk and reward effectively. Choose an actively managed fund with strong historical performance. Stay invested with SIPs for disciplined wealth creation.

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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