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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on May 13, 2022

Mutual Fund Expert... more
John Question by John on May 13, 2022Hindi
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Kindly review my Portfolio:

Parag Parikh Flexi cap fund direct growth 10k /Month
PGMI India Midcap opportunities fund direct growth 8k/Month
Axis Long Term Equity Fund direct growth 10k /Month
Mirae Asset Tax Saver Fund direct growth 10k /Month
Canara Robeco Bluechip Equity Fund direct growth 8k/Month
IDFC Nifty fund direct growth 10k /Month
Mirae Asset NYSE FANG+ ETF FoF  5k/Month

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 Nov 20, 2019

Money
Details of my mutual fund portfolio are as under: Name of the Fund Category RankMF Star Rating Axis Blue Chip Mutual Fund Equity - Large Cap Fund 5 Axis Midcap Fund Growth Equity - Midcap Fund 4 CanaraRobeco Equity Diversified Fund Regular Growth Equity - Multi Cap Fund 4 DSP Small Cap Fund Regular Growth Equity - Small cap Fund 2 HDFC Midcap opportunities Fund Growth Equity - Midcap Fund 3 ICICI Prudential Exports and Services Fund Growth Equity - Sectoral Fund - Service Industry 2 IDFC Multi cap Fund Regular Growth Equity - Multi Cap Fund 4 L&T Equity Fund Regular Growth Equity - Multi Cap Fund 4 L&T India Value Fund Regular Growth Equity - Value Fund 3 Nippon India Multicap Fund  Equity - Multi Cap Fund 2 SBI Blue Chip Fund Equity - Large Cap Fund 4 SBI Consumption opportunities Fund Regular Growth Equity - Sectoral Fund - FMCG 3 SBI Focussed Equity Fund Regular Growth Equity - Focused Fund 4
Ans:

All 5 and 4 star rated funds can be continued, rest can be replaced by the funds below in their respective categories.

Large cap Suitable option considering quality and value for money at present levels is Mirae Asset Large Cap Fund

Large and Midcap Suitable option considering quality and value for money at present levels is Kotak Equity opportunity.

Midcap: Suitable option considering quality and value for money at present levels is DSP Midcap and Axis Midcap

Multicap: Suitable options considering quality and value for money at present levels are UTI Equity Fund, Axis Multicap, Motilal Oswal Multicap 35

Focused: Suitable options considering quality and value for money at present levels are Axis Focused 25 and Motilal Oswal Focused 25

Small cap: Suitable options considering quality and value for money at present levels are Kotak Small Cap and Axis Small Cap

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Asked by Anonymous - May 12, 2024Hindi
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Hello. Please review my portfolio Age: 27+ Portfolio age : 5yrs+ Mirae asset tax saver 4500 Tata ELSS 3000 Parag parikh flexi cap 3000 Mirae asset lage & mid cap : 2000 Sbi small cap 6500 Axis small cap 3000 Also I'm doing step-up SIP in the above funds . P
Ans: Good Morning,

You have built a commendable and diversified investment portfolio at a young age. This proactive approach to investing sets a solid foundation for your future financial goals. Let’s review and assess your portfolio to ensure it aligns with your objectives.

Overview of Your Portfolio
Your portfolio includes a mix of tax-saving funds, large-cap, mid-cap, and small-cap funds, which is a balanced approach to long-term wealth creation. Here is a summary of your investments:

Mirae Asset Tax Saver: 4,500 rupees
Tata ELSS: 3,000 rupees
Parag Parikh Flexi Cap: 3,000 rupees
Mirae Asset Large & Mid Cap: 2,000 rupees
SBI Small Cap: 6,500 rupees
Axis Small Cap: 3,000 rupees
You are also doing step-up SIPs, which is an excellent strategy for increasing your investment amount over time and leveraging the power of compounding.

Assessment and Recommendations
Strengths of Your Portfolio
Diverse Fund Selection:

Your portfolio includes ELSS funds, which offer tax benefits under Section 80C.
The mix of large-cap, mid-cap, and small-cap funds provides balanced exposure across different market capitalizations.
Flexi-cap funds like Parag Parikh Flexi Cap offer flexibility to move across market caps based on market conditions.
Step-up SIPs:

Increasing your SIP amount periodically helps in combating inflation and increasing your investment corpus over time.
Areas for Improvement
Overweight in Small Caps:

You have significant exposure to small-cap funds (SBI Small Cap and Axis Small Cap). Small-cap funds can be highly volatile and risky, especially during market downturns.
Consider reducing exposure to small caps slightly to mitigate risk. Reallocate these funds to more stable large-cap or balanced funds.
ELSS Funds Allocation:

Your investment in ELSS funds (Mirae Asset Tax Saver and Tata ELSS) is good for tax saving, but ensure it aligns with your tax-saving needs.
Evaluate if the current allocation meets your Section 80C limit and adjust if necessary.
Review Fund Performance:

Regularly review the performance of each fund in your portfolio. While you have chosen reputable funds, market dynamics change, and fund performance can vary.
If any fund consistently underperforms, consider replacing it with a better-performing alternative.
Portfolio Rebalancing:

Periodically rebalance your portfolio to maintain the desired asset allocation. This ensures that your investment strategy stays aligned with your financial goals and risk tolerance.
Suggested Adjustments
Increase Allocation to Large-Cap and Balanced Funds:

Consider increasing your investment in large-cap or balanced funds. These funds tend to be more stable and less volatile compared to small-cap funds.
Maintain Diversification:

Continue diversifying across different fund types and market capitalizations to spread risk and maximize potential returns.
Monitor and Adjust Step-up SIPs:

Keep increasing your SIP amounts regularly. Ensure that the increments are sustainable and align with your income growth.
Long-Term Strategy
Stay Invested for the Long Term:

Continue your disciplined investment approach. Staying invested for the long term will help you ride out market volatility and benefit from compounding.
Regular Reviews with a Certified Financial Planner (CFP):

Schedule regular reviews with a CFP to ensure your portfolio remains aligned with your financial goals. A CFP can provide tailored advice and adjustments based on market conditions and personal circumstances.
Emergency Fund and Insurance:

Ensure you have an adequate emergency fund and proper insurance coverage. This will protect your investments from being liquidated during emergencies.
Conclusion
Your portfolio is well-diversified and positioned for growth. By making minor adjustments, increasing stability, and regularly reviewing your investments, you can continue to build wealth effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |431 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 22, 2024

Asked by Anonymous - Nov 22, 2024Hindi
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A bit long story I'm 21 student preparing for medical competative entrance exam for past 3 years (21-24).2 year ago this phase I was in a long distance relationship for 4 months with a girl I met in my class .But it didn't last long due to the problems created due to distance as she couldn't understand myself and I couldn't understand herself.so there was a misunderstanding and I couldn't hold on as I was in heavy pressure by exams and financial problems.so I couldn't handle and I felt like too early and broke up with her by losing my mind.she was completely disappointed as I didn't speak to her for more than an year due to one more year preparation.i missed her very much but I didnt tell her.I missed govt seat in border mark and the same year she got into a relationship with another guy in her class.i don't blame her. But I feel like my entire life is shattered and I couldn't move on from that girl till now.I couldn't concentrate on my career too.im kind of person who is always confident in all aspects but I have totally lost my mind .I can see that in an danger situation as age is running and family pressure, everyone of my classmates are far ahead of me I couldn't withstand this situation and couldn't make proper decision in any aspect. Mam please help me out.
Ans: Dear Anonymous,
I understand your concerns. The first step is to focus on moving on; she has, and you should too. Prioritize your career, your family, and your future. Next, what has happened to your career progress has already happened. It's unfortunate, but there's no way to change that. But give yourself a second chance; work harder and achieve greater things than you even imagined before. Trust me, you are not the only person who is standing in a situation like this. Many have, and many more will. But the ones who have passed this time will give you the same advice that I did.

Best Wishes.

...Read more

Milind

Milind Vadjikar  |682 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 22, 2024

Asked by Anonymous - Nov 13, 2024Hindi
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Sir, I am 40yrs old. Having monthly takehome salary of 1.1 lakh and rental income of 36000. My investment are 2 flats worth of 1cr. 4 plots in Bhubaneswar worth of 2crs. EPF balance 50 lakh, LIC policies worth of 16 lakhs, NPS worth of 10 lakhs. My monthly saving commitments are - EPF (employee+employer) 28000 NPS 15000 MF 7500 Gold scheme 5000 Financial burden - HL emi of 24000 Monthly expanses 50000 I would like to retire at 50. Please advise for retirement plan with life expectancy of 80yrs.
Ans: Hello;

The value of your investments after 10 years;

A. EPF Corpus+Contribution: 1.6 Cr
B. NPS Corpus+Contribution: 53 L
C. MF(sip) + Gold(sip): 25 L
D. Real estate (land): 3.26 Cr

So sum of A, C & D gives us a corpus of 5.11 Cr

Since you will withdraw NPS before 60 age 80% of corpus will go into annuity while 20% will be available to you.

So you may expect monthly income of around 21 K from annuity(42.4 L).

Balance 10.6 L get added to 5.11L taking your total corpus to ~ 5.2 Cr.

If you invest 5 Cr in a conservative hybrid debt fund and do a SWP at the rate of 3%, you may expect a monthly income of around 1.1 L(post-tax).

Add your monthly rental income of 36 K(No growth factored) and annuity income of 21 K to this and you have total monthly income of 1.67 L after 10 years.

Your current monthly expenses of 50 K after 10 years would be around 90 K and 1.6 L after 20 years.

Considering return of around 7-7.5% from the conservative hybrid debt fund you will still generate inflation adjusted return at 3% SWP after 80 years of age.

Assumptions:
Inflation rate-6%
Return from EPF-8%
Return from NPS-9%
Return from MF-10%
Return from gold-7%
Return from Land-5%
Annuity rate-6%

The spare flat is not considered in this because it will continue to yield you rental income in retirement.

Since real estate(land) returns may fluctuate over 10 years suggest to increase MF sip(6X) as a back-up, also in this case you may decide to retain & invest in NPS upto 60 age.

Of course MF returns are also not assured but you are improving the odds by backing two appreciable assets(RE & equity) over long-term.

Happy Investing;
X: @mars_invest

...Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Money
My age 62, male, getting rental income Rs. 90k nett. Already subscribing 12.5k in PPF for the past 2 1/2 years. No other investments. My target is 5 crores in 10 years. I already have Mediclaim Rs.50 lakhs for me & wife . Please advice me what to do.
Ans: Your current financial foundation is strong and shows promise:

A rental income of Rs. 90,000 per month provides consistent and predictable cash flow. This stability can serve as the backbone for your investment strategy.

PPF contributions of Rs. 12,500 per month for 2.5 years reflect disciplined saving. However, its returns may be insufficient to achieve a high-growth target like Rs. 5 crores in 10 years.

A robust Mediclaim policy of Rs. 50 lakhs for you and your wife ensures adequate health coverage. This safeguard allows you to focus on wealth-building without worrying about medical emergencies.

Despite these positive factors, achieving Rs. 5 crores in 10 years requires a carefully crafted and growth-oriented strategy.

Defining and Prioritising Your Financial Goals
Achieving Rs. 5 crores is ambitious yet achievable with a focused approach:

Define this target as your primary financial goal over the next decade.

Break it into manageable milestones: for example, Rs. 50 lakhs every 1-2 years in cumulative investments and growth.

Prioritise high-return investments that align with your risk tolerance and financial capacity.

Optimising Existing PPF Contributions
While PPF is a secure investment, its growth potential is limited:

Returns: PPF currently offers an interest rate of approximately 7-7.5%, which barely outpaces inflation.

Contribution Review: Consider capping your PPF contributions at Rs. 1.5 lakh annually (to utilise the Section 80C benefit). This ensures that excess funds are redirected to higher-return investments.

PPF can serve as a low-risk component of your portfolio but should not dominate your investment strategy.

Building a Diversified Investment Portfolio
A diversified portfolio will provide a balance of risk and reward. Include the following components:

1. Equity Mutual Funds for Growth
Equity mutual funds are essential for achieving high returns over the long term:

Large-Cap Funds: These invest in established companies and offer stability with moderate growth. They are ideal for a portion of your portfolio to reduce risk.

Multi-Cap or Flexi-Cap Funds: These provide exposure to companies of all sizes, offering growth and diversification.

Sectoral and Thematic Funds: Avoid these unless you have a high risk tolerance and understand market dynamics.

ELSS Funds: These not only provide tax savings under Section 80C but also deliver market-linked returns.

Why Avoid Index Funds?

Index funds may offer simplicity and lower expense ratios, but they lack flexibility. They cannot adapt to market conditions or capitalise on outperforming sectors. Actively managed funds, on the other hand, have the potential to outperform the market, especially in a developing economy like India.

Start with a Systematic Investment Plan (SIP) in selected funds to build wealth steadily.

2. Debt Mutual Funds for Stability
Debt funds add stability to your portfolio and reduce overall risk:

Choose funds with low credit risk and moderate duration to ensure safety and predictable returns.

Debt funds are suitable for short- to medium-term goals or as a fallback during market corrections.

Taxation Note: Both LTCG and STCG on debt funds are taxed as per your income tax slab. This should be factored into your planning.

3. Balanced Advantage Funds
Balanced advantage funds (BAFs) dynamically allocate assets between equity and debt. They:

Provide exposure to equity while minimising downside risk.

Offer a suitable option for someone nearing retirement but seeking growth.

4. Gold Investments for Diversification
Allocate a small portion (5-10%) of your portfolio to gold:

Gold serves as a hedge against inflation and currency depreciation.

Choose gold ETFs or sovereign gold bonds for ease of liquidity and better returns.

Emergency Fund Creation
Having an emergency fund is non-negotiable:

Maintain at least 6-12 months of expenses in liquid investments like liquid mutual funds or high-interest savings accounts.

This ensures liquidity for unforeseen events without disturbing your long-term investments.

Focus on Retirement Planning
At 62, balancing growth and safety becomes critical:

Estimate your monthly retirement expenses, considering inflation over the next 10-15 years.

Your target of Rs. 5 crores should primarily serve as your retirement corpus.

Allocate assets thoughtfully:

60-70% in equity funds for growth.
30-40% in debt funds for stability.
Periodically rebalance your portfolio to maintain this allocation.

Strategic Tax Planning
Tax efficiency can significantly impact your returns:

Continue using Section 80C to its full potential, including ELSS funds and PPF.

Consider the National Pension System (NPS) for an additional Rs. 50,000 deduction under Section 80CCD(1B).

Be mindful of the new taxation rules for mutual funds:

Equity Mutual Funds: LTCG above Rs. 1.25 lakh is taxed at 12.5%; STCG at 20%.
Debt Funds: LTCG and STCG are taxed as per your income slab.
Consult a Certified Financial Planner to optimise your tax strategy.

Regular Portfolio Monitoring and Rebalancing
Investing is not a one-time activity:

Review your portfolio every six months or annually to track performance.

Rebalance your asset allocation periodically to align with your financial goals and risk appetite.

Stay committed to SIPs even during market downturns, as this ensures cost-averaging.

Additional Suggestions
Avoid Over-Reliance on PPF
While PPF is safe, it is not sufficient for wealth creation. Shift excess contributions to equity-based investments for better returns.

Avoid Direct Stocks
Direct equity investing requires time, expertise, and constant monitoring. It carries higher risk and may lead to losses without proper research. Instead, rely on equity mutual funds managed by professionals.

Avoid Mixing Insurance and Investments
Do not invest in ULIPs or endowment plans, as they offer suboptimal returns. Stick to pure insurance products for protection and mutual funds for growth.

The Role of a Certified Financial Planner
To achieve Rs. 5 crores, a well-crafted financial plan is essential. A Certified Financial Planner (CFP) can:

Analyse your current investments and recommend improvements.

Design a customised strategy tailored to your income, expenses, and goals.

Provide periodic reviews to ensure you stay on track.

Finally
Achieving Rs. 5 crores in 10 years is a realistic goal if you adopt a disciplined and diversified approach.

Optimise your PPF contributions and channel excess funds into higher-growth investments.

Build a diversified portfolio with equity and debt mutual funds.

Include a small allocation to gold and maintain an emergency fund.

Stay consistent with your SIPs and review your investments regularly.

Work with a Certified Financial Planner to create a personalised roadmap.

By following these steps, you can secure your financial future and meet your goals.

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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