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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Dec 07, 2021

Mutual Fund Expert... more
Anil Question by Anil on Dec 07, 2021Hindi
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As of now, I have an investment of Rs 1,00,000 in Aditya Birla Front Line Equity and I want to change the fund as it is not performing as well.

Do you suggest a mid/flexi cap or an international fund option with AB mutual fund family or I should redeem and start an SIP in some other fund with a very high growth potential?

Ans: You may consider from these funds:

  1. ICICI Prudential Us Bluechip Equity Fund (Growth)
  2. Parag Parikh Flexi Cap Fund (Growth)
  3. SBI Magnum Global Fund (Growth)

 

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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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jan 30, 2023

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Hi sir,Myself Sujit Singha- Private sector service holder & i am 41yrs my Financial goal plan is 45/50 Lcs in next 15 to 20yrs so following investment portfolio for last 5 yrs so far & kindly suggest if any switch or new investment in MF to be done/add.No-1) IDFC Emerging Business Fund-Regu-Growth=Rs.1000/- No-2) Axis Bluechip Fund Growth =Rs.3000/- No-3) Axis Small Cap Fund Reg (G) =Rs.2000/- No-4)DSP Mid Cap Duns Reg(G) = Rs.2000/- No-5)Axis Flexi cap Fund (G) =Rs.1500/- No-6) Kotak Emerging Equity (G) =Rs.2000/- Other than this if any shares can i Hold for long term plz advice
Ans: You have a total of Rs 11,500 of SIPs per month. You will easily reach your target of Rs 50 Lakhs even in 15 years with the portfolio you are following, even after not taking into account the amount you have accumulated in the past 5 years!
And magic will happen if you increase your SIP by 10% each year as your salary increases.

However, remember that your portfolio is very aggressive, 100% equity oriented and would need a review and if required, rebalancing once a year.

My recommendations on your funds:-

1. Axis Bluechip Fund – Large Cap – Continue
2. Axis Flexicap Fund – Flexi Cap – Poor performance. Switch to Parag Parikh Flexi Cap Fund
3. Kotak Emerging Equity Fund – Mid Cap - Continue
4. DSP Mid Cap Fund – Mid Cap – Poor performance. Switch to PGIM India Midcap Opp Fund
5. IDFC Emerging Business – Small Cap - A very new fund with hardly any track record. Switch instead to SBI Small Cap Fund
6. Axis Small Cap Fund – Small Cap – Continue

..Read more

Ramalingam

Ramalingam Kalirajan  |7453 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Ramalingam

Ramalingam Kalirajan  |7453 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Asked by Anonymous - May 26, 2024Hindi
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Sir I am investing 25k per month .10k in canara robecco.5k in PGIM flexicap.7.5 K in Nippon India small call.and 2.5K in tata small cap. Pls review my portfolio in tension of long term investment. Pls suggest one mid cap fund with this. Do I need to add another flexicap apart from above.What should be. Please also suggest if I want to stop one fund and switch into another what is process of investing it at one time
Ans: You are currently investing Rs 25,000 per month across four mutual funds: Canara Robeco, PGIM Flexicap, Nippon India Small Cap, and Tata Small Cap. Let's review your portfolio and suggest any necessary adjustments for long-term growth.

Reviewing Your Current Portfolio
Your current investments are as follows:

Canara Robeco (Rs 10,000/month): Canara Robeco is known for its balanced approach, offering stable returns.

PGIM Flexicap (Rs 5,000/month): A flexicap fund provides the flexibility to invest across various market capitalizations.

Nippon India Small Cap (Rs 7,500/month): Small-cap funds have high growth potential but come with higher risks.

Tata Small Cap (Rs 2,500/month): Another small-cap fund, adding more exposure to high-growth but volatile investments.

Analysis of Current Portfolio
Your portfolio is diversified but leans heavily towards small-cap funds, which increases risk. Small-cap funds are volatile and can lead to significant gains or losses. It is essential to balance this with funds that offer stability and moderate growth.

Suggesting a Mid Cap Fund
Adding a mid-cap fund can balance your portfolio. Mid-cap funds offer higher growth potential than large-cap funds but are less risky than small-cap funds. Here are the benefits of adding a mid-cap fund:

Balanced Growth: Mid-cap funds provide a mix of growth and stability.

Risk Mitigation: Diversifies your risk profile, reducing dependency on small-cap performance.

Potential Returns: Mid-cap funds can outperform in certain market conditions, offering substantial returns.

Recommendation for a Mid Cap Fund
Consider investing in a well-managed mid-cap fund. A mid-cap fund will provide a balanced growth approach and diversify your risk. Consult with a Certified Financial Planner (CFP) to choose the best mid-cap fund for your needs.

Considering an Additional Flexicap Fund
You already have PGIM Flexicap. Adding another flexicap fund may not be necessary. Flexicap funds provide the flexibility to invest across various market capitalizations, offering diversification within a single fund. Instead, ensure your current flexicap fund aligns with your goals.

Switching Funds: Process and Considerations
If you want to stop one fund and switch to another, follow these steps:

Step 1: Evaluate Performance
Assess the performance of the fund you wish to stop. Consider factors like past performance, consistency, and management quality.

Step 2: Redeem Units
Initiate the redemption of units from the fund you want to exit. This can be done online or through your mutual fund distributor.

Step 3: Transfer to New Fund
Once redeemed, the funds will be credited to your bank account. You can then invest this amount as a lump sum in the new fund.

Step 4: Systematic Transfer Plan (STP)
Alternatively, use a Systematic Transfer Plan (STP). This allows you to transfer the redeemed amount gradually into the new fund, reducing market timing risks.

Optimizing Your Portfolio
Regular Reviews
Review your portfolio regularly. Monitor the performance and make adjustments as needed. A quarterly review is advisable.

Rebalance Annually
Rebalance your portfolio annually to maintain your desired asset allocation. This ensures your investments remain aligned with your goals and risk tolerance.

Increase SIP Amount
As your income grows, consider increasing your SIP contributions. This will accelerate your wealth accumulation and help achieve your long-term goals faster.

Conclusion
Your current portfolio is diversified but has a heavy tilt towards small-cap funds. Adding a mid-cap fund will balance your risk and growth potential. Another flexicap fund may not be necessary. Ensure regular reviews and rebalancing to stay on track. If switching funds, consider using an STP for a smoother transition. Consulting with a Certified Financial Planner (CFP) will provide tailored advice to optimize your investments.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7453 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 14, 2024

Asked by Anonymous - Aug 07, 2024Hindi
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Dear Sir - End July'24, I have started an SIP of ICICI Prudential Nifty 50 Index (Rs 10K), Aditya Birla Sun Life PSU Equity(Rs 5K) and Baroda BNP Paribus Large Cap Fund Rs 15K. (All are Direct-Growth). I am open to moderate/high risk. Could you please let me know, if the choice of funds needs any change in near future. Thanks a lot
Ans: I appreciate your proactive approach to investing. Starting your SIPs is a significant step towards building wealth. Your choice of funds and your willingness to take moderate to high risks show that you’re keen on growing your investments. Let’s take a closer look at your current portfolio and see how we can fine-tune it for better results.

Understanding Your Current Portfolio
ICICI Prudential Nifty 50 Index (Rs. 10K): Index funds like this one track the Nifty 50. They mirror the index’s performance and offer average market returns. While they are low-cost, they lack the potential to outperform the market.

Aditya Birla Sun Life PSU Equity (Rs. 5K): This fund invests in Public Sector Undertakings (PSUs). It focuses on companies owned by the government, which can be profitable but often have limited growth potential due to regulatory constraints.

Baroda BNP Paribas Large Cap Fund (Rs. 15K): Large-cap funds invest in established companies with stable returns. They are generally safer but might not deliver the high growth you’re seeking.

The Drawbacks of Index Funds
Limited Growth Potential: Index funds like the Nifty 50 merely track the market. They don’t have the potential to outperform. You’re getting average returns without the benefits of active management.

Lack of Professional Management: Index funds are passively managed. This means they don’t have a fund manager actively looking for opportunities to grow your investment. In a market downturn, index funds can’t adjust to protect your investment.

Why Actively Managed Funds Might Be Better
Higher Growth Potential: Actively managed funds have the potential to outperform the market. Fund managers can pick stocks that they believe will do well, giving you a better chance of higher returns.

Professional Expertise: With actively managed funds, you get the benefit of professional expertise. Fund managers have access to research, data, and market insights that can help grow your investment.

Flexibility: Actively managed funds can adapt to changing market conditions. This flexibility can help protect your investment in volatile markets.

The Disadvantages of Direct Funds
Self-Management: Direct funds require you to manage the investment yourself. This includes choosing the right funds, monitoring their performance, and making adjustments. Without a Certified Financial Planner (CFP), this can be challenging and time-consuming.

Lack of Guidance: Investing through regular funds via a CFP provides you with personalized advice. A CFP can help you select the best funds based on your financial goals, risk appetite, and market conditions.

Suggestions for Adjusting Your Portfolio
Consider Actively Managed Funds: Given your openness to moderate to high risk, you might want to consider shifting from the Nifty 50 index fund to actively managed equity funds. These can offer higher growth potential and better returns over the long term.

Reevaluate the PSU Equity Fund: PSUs often have stable returns but may not match the growth potential of other sectors. If you’re looking for higher returns, consider diversifying into sectors with more growth opportunities.

Diversify Beyond Large Caps: While large-cap funds are stable, they may not offer the high growth you’re looking for. Consider adding mid-cap or multi-cap funds to your portfolio for a better balance of risk and return.

Crafting a Balanced and Growth-Oriented Portfolio
Diversification is Key: A well-diversified portfolio is essential. It helps you manage risk while maximizing returns. Consider including a mix of large-cap, mid-cap, and sector-specific funds in your portfolio.

Review Your Risk Tolerance: Since you’re open to moderate to high risk, focus on funds that align with this risk profile. Actively managed funds in growth sectors can offer the higher returns you’re aiming for.

Regular Monitoring and Adjustments: Keep a close eye on your portfolio’s performance. Regular reviews, possibly with a CFP, can help you make necessary adjustments to stay on track with your financial goals.

Final Insights
Your investment journey has started on a strong note. However, tweaking your portfolio can make a significant difference in achieving your financial goals. Consider shifting away from index and direct funds towards actively managed funds. This strategy can offer you higher returns and better alignment with your risk profile.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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I am 27 years old girl corona made my life a waste. Just before corona I left an assistant job to go for regular studies then due to corna I got stuck being jobless. I really wanted to study in regular as in graduation I did from open university. Time being I tried govt job preparation but nothing happened. I got gap of 2 years i couldn't find another job. At the end I did get my post graduation mba completed but I didn't get a job of my education all are of calling & backend. Currently its been 3-4 months nothing is working, application getting rejected every time. During final year exams my bf broke up with me from a 8 year long relationship. Please answer me
Ans: To rebuild your career after completing an MBA, identify transferable skills such as management, communication, leadership, and problem-solving, and match them with job roles beyond just calling and backend work. Revamp your resume by highlighting your educational qualifications and skills, and showcase internships, projects, or certifications completed during your MBA. Upskill strategically by considering short-term certifications relevant to your MBA specialization, such as digital marketing, project management, or data analytics.

Get a ton of useful information on "Resume Building," "LinkedIn Profile Building," "Job Search," and "Salary Negotiation Skills" by tuning in to the free webinars hosted by Vikram Anand, Sakshi Chandrasekar, and Sawan Kapoor. Take advantage of these kinds of free webinars to keep yourself busy and increase your self-assurance.

Job search strategy should include applying for jobs that match your skills, using job portals like LinkedIn, and Indeed, and networking actively on LinkedIn. Consider exploring freelance projects or paid internships related to your MBA specialization.

Emotional healing is essential, and it's important to acknowledge the pain of the loss of a relationship. Focus on self-care activities that uplift you, such as journaling, exercising, reading, or joining support groups. Practice mindfulness or meditation to reduce anxiety. Seek professional support if feelings of sadness or self-doubt persist.

Set small, achievable goals to avoid feeling overwhelmed and redefine success as personal growth, resilience, and continuous learning. Remember that progress takes time, and you are not alone in this phase. Stay patient and persistent, as your breakthrough will come.
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Ans: First, it's essential to acknowledge the emotional strain this situation may be putting on both of you. It's okay to feel overwhelmed or uncertain, but your commitment to each other is a strong foundation to build upon. It's crucial to support each other emotionally through this process, as it will require patience, resilience, and understanding.

Additionally, you might consider looking into organizations or NGOs that support interfaith or inter-caste couples. These groups often have experience dealing with similar situations and can offer both legal advice and emotional support. They can also help navigate the legal process in a way that minimizes risk and ensures your rights are protected.

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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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