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Ramalingam Kalirajan |4329 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

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

Question by Kotte on Apr 30, 2024Hindi

I invested in mf sip of sbi contra fund Reg G,Quant small cap fund Reg G, Sbi small cap fund Dir G, And also lumpsum of ?5000 in Parag parikh flexi cap fund Dir G, Nippon India nifty small cap 250 index fund Dir G, Sbi nifty small cap 250 index fund Dir G. Kindly advice is it required any reallocation required,if yes suggest pl.

Ans: It's excellent that you're investing in mutual funds through SIPs and lump-sum investments, which can help you build wealth over the long term. Let's assess your current portfolio and see if any reallocation is needed.

Your portfolio consists of a mix of actively managed funds and index funds, covering different market segments like contra, small-cap, and flexi-cap. This diversification is good, but it's essential to periodically review and rebalance your portfolio to ensure it remains aligned with your financial goals and risk tolerance.

Firstly, let's evaluate your actively managed funds. SBI Contra Fund, Quantum Small Cap Fund, and SBI Small Cap Fund are actively managed funds with varying investment strategies. It's crucial to monitor their performance and ensure they continue to meet your expectations. If any of these funds consistently underperform or deviate from their investment mandate, you may consider reallocating your investments to better-performing alternatives within the same category.

Regarding your lump-sum investments, Parag Parikh Flexi Cap Fund is known for its diversified approach across market caps and sectors, providing flexibility and potential for growth. However, it's essential to review its performance periodically to ensure it continues to deliver results.

Nippon India Nifty Small Cap 250 Index Fund and SBI Nifty Small Cap 250 Index Fund are passive funds tracking the Nifty Small Cap 250 Index. While index funds offer low-cost exposure to specific market segments, they may not outperform actively managed funds consistently. However, they provide diversification and can be a valuable component of a well-rounded portfolio.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Consider your investment goals, risk tolerance, and time horizon when evaluating the need for reallocation. If any fund significantly underperforms or if your financial circumstances change, you may need to rebalance your portfolio accordingly.

It's advisable to consult with a Certified Financial Planner who can provide personalized advice based on your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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.

Name of the Fund	Category	Recommendations
Sivakumar
SBI Magnum Global Fund (D)	Equity - Thematic Fund - MNC	Continue
HDFC Midcap Opportunities - Regular plan (G)	Equity - Mid Cap Fund	Continue
SBI Gold fund - Regular plan	FoFs (Domestic / Overseas ) - Gold	Continue
SBI Focussed Equity Fund - Regular plan (G)	Equity - Focused Fund	Continue
Franklin India Equity Fund (G)	Equity - Multi Cap Fund	SmartSwitch to UTI Equity Fund - Growth
ICICI Prudential Bluechip Fund (G)	Equity - Large Cap Fund	SmartSwitch to Axis Bluechip fund -Growth
HDFC Capital Builder Value fund - Regular plan (G)	Equity - Value Fund	SmartSwitch to UTI Value Fund
Principal Multi cap Growth fund - Regular plan	Equity - Multi Cap Fund	SmartSwitch to UTI Equity Fund - Growth
HDFC Capital Builder value fund (G)	Equity - Value Fund	SmartSwitch to UTI Value Fund
HDFC Midcap opportunities - Regular plan (G)	Equity - Mid Cap Fund	Continue
SBI Magnum Gilt Fund regular growth	Debt - Gilt Fund	Continue
L&T Midcap fund cumulative	Equity - Mid Cap Fund	SmartSwitch to DSP Mid Cap
ICICI Prudential Regular Savings fund (G)	Hybrid - Conservative Hybrid Fund	Continue
MIRAE Asset Emerging Blue chip fund – Regular plan (G)	Equity - Large & Mid Cap Fund	Continue
Axis Bluechip Fund – Regular plan (G)	Equity - Large Cap Fund	Continue