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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Dec 06, 2022

Mutual Fund Expert... more
P Question by P on Dec 06, 2022Hindi
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I have been investing in MF from last 5 years via SIP regularly with intermittent top ups. My portfolio consists of{

Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset NYSE FANG+ ETF FoF Direct

Nippon India Gilt Securities Fund Direct

Tata India Pharma & HealthCare Fund Direct Growth

Navi US Total Stock Market FOF Direct - Growth

HDFC Mid-Cap Opportunities Direct Plan-Growth

ICICI Prudential 50 Nifty Index Direct Plan-Growth

Canara Robeco Emerging Equities Fund Direct-Growth

Mirae Asset Emerging Bluechip Fund Direct-Growth

SBI Banking & Financial Services Fund Direct-Growth

IIFL Focused Equity Fund Direct - Growth

Motilal Oswal S&P 500 Index Fund Direct-G. 

Please guide me whether my port2needs any correction.

Ans: Please continue

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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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Dec 20, 2019

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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Sir, I have been doing SIP under following MF's : Axis Flexi Cap Fund - Regular Plan 5,000.00 Bandhan Core Equity Fund - Regular Plan - Growth 3,000.00 DSP Mid Cap Fund - Regular Plan 2,500.00 HSBC Value Fund - Regular Plan 2,500.00 ICICI Prudential Value Discovery Fund 2,500.00 Kotak Flexi Cap Fund - Regular Plan 2,000.00 Quant Active Fund 5,000.00 SBI Flexi Cap Fund - Regular Plan 2,500.00 SBI Small Cap Fund - Regular Plan 10,000.00 UTI Flexi Cap Fund - Regular Plan 5,000.00 HDFC Mid-Cap Opportunities Fund - Regular Plan 3,000.00 Aditya Birla Sun Life Flexi Cap Fund - Regular Plan - Growth 5,000.00 HDFC Focused 30 Fund - Regular Plan 2,000.00 Also i have lump-sum investment in following MF schemes - HDFC Top 100 RP (G) 51,998.45 HDFC Gold RP (G) 1,43,997.00 ICICI Prudential Multi-Asset Fund 3,79,511.11 ICICI Prudential US Bluechip Equity Fund - Regular 99,800.95 Kotak Flexi Cap Fund - Regular Plan 1,14,995.00 In addition to above, i am investing regularly in PPF & have an Share portfolio of about Rs. 6 Lacs & few Life Insurance policies (LIC). I am in need of about Rs. 25 Lacs. Kindly advise which funds to exit and if any other rebalancing of MF is required. Thanks
Ans: You've built a diverse portfolio with a mix of systematic investment plans (SIPs), lump-sum investments, and other financial instruments, showcasing your commitment to long-term wealth creation. Let's review your current holdings and make strategic adjustments to align with your financial goals:
1. SIP Review:
• Evaluate the performance and suitability of each SIP based on your investment objectives and risk tolerance.
• Consider consolidating or exiting SIPs with underperforming funds or overlapping strategies to streamline your portfolio.
2. Lump-Sum Investments:
• Assess the performance and outlook of your lump-sum investments to ensure they complement your overall investment strategy.
• Consider rebalancing or exiting investments that no longer align with your investment goals or risk profile.
3. Portfolio Rebalancing:
• Rebalance your portfolio to maintain an optimal asset allocation and manage risk effectively.
• Consider reallocating funds from underperforming or overweight sectors/funds to sectors/funds with better growth potential.
4. Exit Strategy:
• Identify funds or investments that are not performing as expected or do not align with your investment strategy.
• Develop an exit strategy to liquidate such investments gradually while minimizing any potential impact on your overall portfolio returns.
5. Alternative Investments:
• Explore alternative investment options such as debt instruments, real estate investment trusts (REITs), or international funds to diversify your portfolio further.
• Consider adding exposure to sectors or asset classes that offer growth potential while mitigating downside risks.
6. Risk Management:
• Review your risk management strategy to ensure adequate protection against market volatility and unforeseen events.
• Consider enhancing your insurance coverage, particularly health and life insurance, to safeguard your financial well-being and protect your loved ones.
7. Financial Planning:
• Continuously monitor your financial plan and make necessary adjustments based on changes in your life circumstances, financial goals, and market conditions.
• Consult with a Certified Financial Planner (CFP) to receive personalized advice and guidance tailored to your specific financial situation and objectives.
Remember, investing is a dynamic process, and periodic review and adjustment are essential to stay on track towards achieving your financial goals. By taking a proactive approach and making informed decisions, you can optimize your investment portfolio and work towards building long-term wealth and financial security.

..Read more

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 09, 2025

Asked by Anonymous - Jan 09, 2025Hindi
Money
Hi Ulhas, i am 44 years of age and have been investing in MF since Feb 2021, presently I am investing a monthly SIP of 5.5 Lakhs in the following 11 funds each with a monthly SIP of 50 K in direct funds, please check whether my portfolio requires any changes. I am an aggressive investor with more than 10-15 years of long-term horizon. 1. parag parakh flexi cap fund. 2. Mirae Large & Mid Cap fund. 3. Axis growth opportunities fund. 4. SBI Multi Cap Fund. 5. Mirae Mid Cap fund. 6. Quant Active Fund. 7. Canara Robeco Small Cap fund. 8. Tata Small Cap Fund. 9. HDFC Multicap fund. 10. Edelweiss Midcap Fund. 11. Kotak Multicap fund.
Ans: Investing Rs. 5.5 lakhs monthly across 11 funds is impressive. Your aggressive approach matches your 10-15 years horizon. Let’s analyse your portfolio and suggest improvements.

Strengths of Your Current Portfolio
Well-Diversified Across Categories: Your funds span large-cap, mid-cap, small-cap, and flexi-cap categories.

Aligned with Aggressive Strategy: The portfolio leans towards mid-cap and small-cap funds. These suit long-term aggressive investors.

Consistent Contributions: High SIP commitment ensures disciplined wealth creation over time.

Areas of Concern
Over-Diversification: Investing in 11 funds dilutes potential returns. Similar categories may overlap.

Direct Funds Approach: Direct plans lack professional guidance for portfolio review and rebalancing.

Small-Cap Heavy Allocation: Multiple small-cap funds increase risk in volatile markets.

Multiple Multicap Funds: Holding three multicap funds may result in duplication of stocks.

Suggestions for Portfolio Optimisation
Limit the Number of Funds
Reduce the number of funds to 5-7. This avoids over-diversification.

Retain one strong performer from each category: large-cap, mid-cap, small-cap, flexi-cap, and multicap.

Avoid Category Duplication
Retain only one fund each in small-cap, mid-cap, and multicap categories.

Choose funds with consistent past performance and fund house credibility.

Focus on Actively Managed Funds Through MFD
Direct funds lack professional advice.

Investing through an MFD with a Certified Financial Planner ensures expert guidance.

MFDs monitor market conditions and align your portfolio for optimal returns.

Reassess Risk Allocation
Small-cap funds should be limited to 10-15% of your portfolio.

Mid-cap funds can constitute 25-30% for higher growth potential.

Allocate 25-30% to large-cap or flexi-cap funds for stability.

Periodic Review and Rebalancing
Review your portfolio every six months or annually.

Rebalance to maintain your desired asset allocation.

Track fund performance and exit underperformers promptly.

Tax Implications to Consider
Long-term capital gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term gains are taxed at 20%.

Diversifying across equity and hybrid funds can optimise tax outflow.

Benefits of Reduced Fund Count
Simplified portfolio management.

Improved tracking of individual fund performance.

Higher potential for compounding due to concentrated allocation.

Recommended Allocation for Aggressive Investors
Large-Cap/Flexi-Cap Funds: Stability with market participation.

Mid-Cap Funds: Balance between risk and growth.

Small-Cap Funds: High-risk, high-reward potential.

Multicap Funds: Flexible allocation across market capitalisations.

Final Insights
Your portfolio reflects strong financial discipline and long-term vision. However, over-diversification dilutes growth. Streamline your funds for focused performance. Professional guidance ensures optimal fund selection and timely rebalancing. Stick to your SIPs to achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 15, 2025

Asked by Anonymous - Mar 15, 2025Hindi
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I AM THINKING OF TAKING A LOAN OF 5,00,000 AGAINST MY CURRENT MUTUAL FUND MOTILAL OSWAL SMALL CAP FUND AND REINVEST IT IN SAME FUND FOR NEXT 3 YEARS. I DON'T WANT LIQUIDITY FOR NEXT 3-4 YEARS. SEEING THE MARKET IS LOW RIGHT NOW CAN I EXPECT A REURN? SHOULD I CONSIDER THIS OPTION?
Ans: Taking a loan against your mutual funds and reinvesting in the same fund may seem like an opportunity to maximise gains. However, this strategy carries significant risks.

Key Risks to Consider
1. Market Uncertainty
Small-cap funds are highly volatile.
A temporary market correction doesn’t guarantee strong returns in the next 3 years.
If the fund underperforms, you could face both a loan repayment burden and lower returns.
2. Interest Cost vs. Expected Returns
Loan interest rates on mutual fund pledges typically range from 9-12% per annum.
Your small-cap fund must generate higher returns than the loan rate to make this strategy profitable.
If the fund returns below 12% CAGR, your effective gains will be negligible or negative.
3. Forced Liquidation Risk
If the market corrects further, your lender may sell your pledged mutual fund units to recover the loan.
This could happen at a loss, forcing you to exit at a lower NAV.
4. Overexposure to a Single Fund
Investing additional money into the same small-cap fund increases concentration risk.
Instead, diversification across flexi-cap, mid-cap, and small-cap funds is better.
Alternative Approaches
Instead of taking a loan, consider:

SIP Investment Strategy

Continue SIPs in a staggered manner rather than a lump-sum reinvestment.
This reduces the risk of investing at an unfavourable price.
Diversified Portfolio Allocation

If markets recover, large-caps and flexi-caps may rebound earlier than small-caps.
Diversifying into these categories will balance returns and risk.
Rebalancing Your Current Portfolio

If you have underperforming funds, consider shifting money to stronger funds.
This avoids borrowing costs and interest rate risks.
Final Insights
Taking a loan against your mutual fund for reinvestment is not advisable due to the high risk of market downturns, interest costs, and forced liquidation. Instead, a disciplined SIP approach in diversified funds will offer better risk-adjusted returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Dr Dipankar

Dr Dipankar Dutta  |963 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 15, 2025

Asked by Anonymous - Mar 15, 2025Hindi
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Career
Greetings to Gurus, I am student from Kolkata,West Bengal. I have completed my ISC in year 2020 from Commerce stream without maths. I am from Lower Middle Class Family, finance is big issue for me. After ISC I enrolled in B.COM(Hons) course from a college under Calcutta University. I was ambitious of being Chef from childhood. But during Covid times and finance problem, I haven't pursued. During my college life, My first three semesters completed online in Covid period, after the lockdown period, my fourth semester got offline and I just passed in one paper out of 4 and then my 5th semester exam got cleared after that I appeared for rest 3 papers of sem 4 and cleared 2 papers and in sixth semester cleared 3 paper out of 4. Again in 2024, I appeared for 6th sem 1 backlog paper and cleared it but don't able to clear 4th sem one backlog paper. So, I have started my UG in year 2020 but not able to clear it till 2024 because of 1 paper(Taxation) and I have last option to reappear in 2025 examination. I want to earn good in my life, suggest me some opportunities and a way to get out from this loop. Mentally getting depress also.
Ans: Hello! First of all, I really appreciate that you're sharing your situation openly. I understand that you're going through a tough time, but I want to assure you that there are always ways to move forward. You are not stuck, and there are opportunities for you to earn well and build a good career.
Step 1: Clear Your B.Com Degree (Important)
You have only one backlog paper (Taxation) left. Make it your #1 priority to clear this in 2025 because having a degree will open more opportunities.
You already passed all other subjects, so just focus on this one. If needed, get help from a tutor or YouTube courses on Taxation.
ccounting & Taxation (?25,000 - ?60,000 per month)
Since you already studied B.Com, this is a natural career path.
Learn Tally, GST Filing, Income Tax Filing.
Free courses: Government’s NPTEL, YouTube (Search “GST Filing Course India”)
I believe in you. Take the first step today! Your situation will improve within 1 year.

...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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