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Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 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
Binay Question by Binay on Dec 15, 2023Hindi
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Hi Sir, I have been investing in the following mututal funds since 4 years in the form of SIP. my investment horizon is 15 years. 1) PGIM Ind Midcap Opp Dir-IDCW : 2500 2) Nippon Ind Small Cap Dir-IDCW : 2000 3) SBI Small Cap Dir-G : 1500 4) Axis Small Cap Dir-IDCW : 2500 5) Nippon Ind Multi Cap Dir-IDCW : 3000 6) Quant Infra Reg-IDCW : 2000 7) Axis Midcap Dir-IDCW : 2000 8) Parag Parikh Flexi Cap Dir-G : 2000 9) Quant Multi Asset Reg-IDCW : 3000 10) Mirae Asset Emrgng Bluechip Reg-IDCW : 2500 Can you please help me out on below queries .... 1) Exit/Continue in above mututal funds? 2) How much amount will be generated after 15 years? 3) Willing to invest 5000 more, please suggest mututal funds Thanks

Ans: Review the performance of each fund and consider factors like consistency, fund manager expertise, and alignment with your investment goals. Exit funds with consistently poor performance or if your investment thesis has changed. Continue with funds that have demonstrated strong performance and align with your long-term goals.

To estimate the amount generated after 15 years, consider the historical returns of each fund, but remember past performance is not indicative of future results. Utilize online calculators or consult a financial advisor for a more accurate projection based on your specific investment amounts and expected returns.

For additional investments of 5000 per month, consider diversifying across different asset classes like large-cap, mid-cap, and flexi-cap funds to spread risk. Research funds with a track record of consistent performance and align with your risk tolerance and investment horizon. Consulting a financial advisor can provide personalized recommendations based on your financial goals and risk profile.
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  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Hello Sir, I m 42, Investing in Mutual fund from last 2 years, following are the SIP's Quant infrastructure- Rs.3000 Quant Small cap- Rs.3000 Parag Parikh Flaxi cap- Rs. 3000 Nippon large cap - Rs. 3000 Newly started Motilal Oswal Midcap- Rs. 3000 Newly started Quant Multi asset fund- Rs. 3000 Newly started Please let me know if needs any changes and my investment span will be 15-20 years.
Ans: Evaluating Mutual Fund Portfolio for Long-Term Goals
As a Certified Financial Planner, I understand the importance of optimizing your mutual fund portfolio to achieve your long-term financial goals. Let's analyze your current investments and assess if any changes are necessary for your investment horizon of 15-20 years.

Genuine Appreciation for Long-Term Investment Horizon
I appreciate your commitment to long-term investing, which is essential for wealth accumulation and financial security over time.

Analyzing Current Investments
Existing SIPs:
Quant Infrastructure Fund
Quant Small Cap Fund
Parag Parikh Flexi Cap Fund
Nippon Large Cap Fund
Newly Started SIPs:
Motilal Oswal Midcap Fund
Quant Multi Asset Fund
Assessing Portfolio Composition
Pros of Current Portfolio:
Diversification: Your portfolio includes funds across various market segments, providing diversification benefits.
Potential for Growth: Each fund targets different sectors and market capitalizations, offering growth opportunities.
Considerations for Changes:
Risk Management: Evaluate the risk exposure of newly started funds and ensure they align with your risk tolerance and investment objectives.
Performance Review: Regularly monitor the performance of all funds to ensure they meet expectations and remain suitable for your goals.
Cost Analysis: Consider the expense ratios and fees associated with each fund to optimize your overall portfolio cost.
Conclusion and Recommendation
Given your investment horizon of 15-20 years, it's crucial to:

Stay Invested: Continue investing systematically in mutual funds to benefit from long-term compounding.
Review Periodically: Periodically review your portfolio performance and make adjustments if necessary to align with changing market conditions and financial goals.
Consult a Financial Planner: Consider consulting a Certified Financial Planner to get personalized advice tailored to your specific financial situation and goals.
Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 20, 2024Hindi
Money
Hello sir, Am doing sip following in following mutual funds and time horizon is 15 - 17 years. Please analyse. 1. Motilal Oswal midcap fund 2400/- 2. Quant smallcap fund 2400/- 3. Motilal Oswal microcap fund 3600/- 4. Parag parikh flexicap fund 2000/-
Ans: Investing with a 15–17 year horizon is a wise decision, as it allows compounding to work effectively. Let’s assess your portfolio with insights to optimise it further.

Portfolio Overview
You are investing Rs 10,400 monthly across four funds.
The portfolio includes mid-cap, small-cap, micro-cap, and flexi-cap categories.
These investments reflect a growth-oriented strategy.
A well-diversified portfolio can potentially meet your long-term financial goals.
Key Strengths of Your Portfolio
1. Diversification Across Market Caps
Exposure to mid-cap, small-cap, and micro-cap ensures high growth potential.
The flexi-cap fund adds stability by diversifying across all market caps.
2. Long Investment Horizon
A 15–17 year horizon allows you to absorb market volatility.
It enables compounding to enhance your returns over time.
3. Growth-Focused Allocation
Small-cap and micro-cap funds can deliver substantial returns in the long run.
Mid-cap funds provide balanced growth and moderate risk.
Areas That May Need Attention
1. High Allocation to Smaller Market Caps
Nearly 80% of your portfolio is allocated to small, micro, and mid-cap funds.
This creates higher risk, as these funds can be volatile in the short to medium term.
2. Sectoral or Stock Concentration Risk
Some funds in your portfolio may have concentrated sectoral bets.
Over-concentration can increase risk during sector-specific downturns.
3. Flexi-Cap Allocation Is Low
Flexi-cap funds provide diversification and stability, especially during market corrections.
A low allocation to this category may reduce your portfolio’s balance.
4. Taxation Implications
Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.
A high-growth portfolio may result in significant taxable gains.
Recommendations for Portfolio Optimisation
1. Rebalance Market Cap Allocation
Increase exposure to large-cap or flexi-cap funds to stabilise your portfolio.
A balanced allocation reduces risk while retaining growth potential.
2. Limit Micro-Cap Allocation
Micro-cap funds carry significant risk and longer recovery periods.
Restrict micro-cap allocation to 10%-15% of your portfolio.
3. Increase Flexi-Cap Allocation
Flexi-cap funds provide adaptive strategies across market conditions.
Raise this allocation to 25%-30% of your portfolio for better risk management.
4. Review Sectoral Exposure
Check if any fund has high exposure to a single sector.
Diversify to avoid dependence on specific industries.
5. Continue Investing Regularly
SIPs are the best way to handle market volatility.
Continue disciplined investing, even during market corrections.
Tactical Steps for Long-Term Wealth Creation
1. Set a Clear Corpus Goal
Estimate the corpus needed for your post-retirement lifestyle.
Account for inflation and your expected life span.
2. Increase SIPs Over Time
Gradually increase your SIPs as your income grows.
This helps you build a larger corpus by leveraging the power of compounding.
3. Monitor Performance Periodically
Review your portfolio every six months to ensure alignment with your goals.
Retain funds that consistently outperform their benchmarks and peers.
4. Adopt a Debt Allocation Near Retirement
Begin shifting a portion of your portfolio to debt funds 5–7 years before retirement.
This safeguards your corpus against equity market volatility closer to your goal.
Addressing Direct Funds and Regular Plans
Benefits of Investing Through Regular Plans
Direct plans may lack professional guidance and personalised advice.
Regular plans offer curated fund selection based on your risk profile.
A Certified Financial Planner ensures better alignment with your financial goals.
Why Active Funds Outperform Index Funds
Active funds capture opportunities in undervalued sectors and stocks.
Index funds lack the flexibility to capitalise on market changes.
For long-term investors, active funds offer superior potential returns.
Tax Planning Insights
Equity gains above Rs 1.25 lakh annually are taxed at 12.5%.
Consider redeeming investments in phases to minimise tax liability.
Plan withdrawals strategically to manage tax efficiency during retirement.
Final Insights
Your portfolio is growth-focused and aligned with your long-term goals. However, reducing micro-cap exposure and increasing flexi-cap allocation will optimise it further. Regularly review and rebalance your portfolio to manage risk and maximise returns. Stay disciplined with SIPs and increase investments periodically for a larger retirement corpus.

A structured approach ensures you achieve financial independence post-retirement.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

Latest Questions
T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

...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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