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Should I Switch from SBI Mid Cap Fund to Motilal Oswal and Axis Small Cap Fund to Quant Small Cap Fund?

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 04, 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
Rahul Question by Rahul on Oct 03, 2024Hindi
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Kya mujhe Sbi mid cap fund se Motilal Oswal midcap and Axis small cap fund se Quant small cap fund me switch karu ya nahi..? View mera Long term ke liye hai atleast 20 year's ????

Ans: Switching funds is a significant decision, especially when you have a long-term horizon of 20 years. Let's evaluate the pros and cons of switching from SBI Mid Cap to Motilal Oswal Midcap and from Axis Small Cap to Quant Small Cap based on various factors.

Evaluating Your Current Funds (SBI Mid Cap & Axis Small Cap)
SBI Mid Cap Fund:

SBI Mid Cap is a well-established mid-cap fund with a proven track record.
It has consistently delivered strong returns, especially over the long term.
The fund has a conservative strategy compared to some aggressive mid-cap funds, which can help manage risk during volatile periods.
Axis Small Cap Fund:

Axis Small Cap has been a reliable performer in the small-cap space.
It focuses on quality small-cap stocks, which means it tends to perform well during market corrections.
The fund managers maintain a quality-focused approach, which can provide more stability in this volatile segment.
Evaluating the Proposed Funds (Motilal Oswal Mid Cap & Quant Small Cap)
Motilal Oswal Midcap Fund:

Motilal Oswal Midcap has a more concentrated portfolio compared to SBI Mid Cap.
It follows a "Buy Right, Sit Tight" strategy, which means the fund sticks with its high-conviction picks for a long time.
This concentrated approach can lead to higher returns but also carries higher risk, especially during market downturns.
If you're comfortable with higher risk in exchange for potential higher returns, this can be a good option.
Quant Small Cap Fund:

Quant Small Cap is known for its aggressive and dynamic management style.
The fund has a more flexible and opportunistic approach compared to Axis Small Cap.
While it has performed very well in recent years, this aggressive strategy can make it more volatile.
Quant tends to switch its portfolio allocation rapidly based on market conditions, which can result in higher returns but also higher risk.
Should You Switch?
Risk Tolerance:

If you are comfortable with higher risk, switching to Motilal Oswal Midcap and Quant Small Cap can potentially deliver higher returns over a 20-year horizon. Both funds are more aggressive in nature.
However, if you prefer a more balanced and stable approach, staying with SBI Mid Cap and Axis Small Cap might be better, as they focus more on quality and risk management.
Investment Horizon:

Since your investment horizon is long-term (20 years), switching to more aggressive funds like Motilal Oswal Midcap and Quant Small Cap can work in your favor due to the compounding effect over time.
Over such a long horizon, short-term volatility may not matter as much, but you need to be mentally prepared for market ups and downs.
Consistency vs. Aggressiveness:

SBI Mid Cap and Axis Small Cap offer more consistency and are slightly conservative in their strategies.
Motilal Oswal Midcap and Quant Small Cap are more aggressive and can potentially generate higher returns but with more volatility.
Final Insights
If you have a high-risk appetite and can tolerate market volatility, switching to Motilal Oswal Midcap and Quant Small Cap could be a good move for maximizing returns over 20 years.

If you prefer more stability and a balanced approach, staying with SBI Mid Cap and Axis Small Cap would be a better option.

Whichever decision you make, ensure you stick to it for the long term and review your portfolio every few years to align with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Oct 04, 2024 | Answered on Oct 04, 2024
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Thank you sir Parag Parikh flexicap ke alwa or kon kon se Flexicap funds hai jinme long term ke liye investment kar sakte hai..? Kam se kam 2 aise funds bataiye ????
Ans: For tailored recommendations, consult a mutual fund distributor (MFD) or a certified financial planner (CFP). They can provide customized advice based on your financial goals and risk profile. Always assess your risk tolerance and investment goals before investing.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment
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  |8285 Answers  |Ask -

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

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Sir good morning. I am 27 years old. I have been investing Rs 10000/- each in SBI Mid cap fund, Small cap Fund and Rs 10000 in ABSL Flexi cap fund and Rs 5000/- in HDFC Midcap funds. I may please be guided whether to continue or to switch to other funds. Thank you sir.
Ans: At 27, you're making proactive investment decisions, which is commendable. Let's review your current investment strategy and explore potential adjustments:

Assessing Your Current Portfolio
SBI Mid Cap Fund and Small Cap Fund: Mid-cap and small-cap funds offer growth potential but come with higher volatility. Consider your risk tolerance and investment horizon when evaluating these funds.

ABSL Flexi Cap Fund: Flexi-cap funds provide flexibility to invest across market capitalizations based on market conditions. They offer diversification and potential for growth.

HDFC Midcap Fund: Similar to SBI Mid Cap and Small Cap funds, HDFC Midcap Fund focuses on mid-cap stocks. Assess whether the overlap in mid-cap exposure across funds aligns with your diversification goals.

Considerations for Continuation or Switch
Performance: Evaluate the performance of your current funds relative to their benchmarks and peers. Consistent underperformance may warrant a review.

Fund Manager Track Record: Assess the track record and expertise of the fund managers managing your investments. Consistency in performance and adherence to investment objectives are key considerations.

Fund Objectives and Strategy: Ensure that the investment objectives and strategies of your funds align with your financial goals and risk profile.

Potential Actions
Review Fund Performance: Conduct a detailed analysis of the performance of each fund in your portfolio over different time periods.

Consult with a Financial Advisor: Consider consulting with a Certified Financial Planner (CFP) to review your investment strategy and explore alternative fund options based on your goals and risk tolerance.

Consider Diversification: Evaluate the need for diversification across asset classes and investment styles to mitigate risk and enhance long-term returns.

Conclusion
While your current investment strategy demonstrates a focus on growth-oriented funds, it's essential to periodically review your portfolio and make adjustments as needed. Assess the performance, objectives, and risk profile of your funds, and consider consulting with a financial advisor for personalized guidance.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

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

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Good morning sir. I am investing in SBI midcap, small cap and health care opportunities fund at the rate of Rs 10000 per month respectively and Rs 5000/- each in ICICI equity funds. Kindly suggest whether to contiue or to switch to other
Ans: It's great to see your proactive approach towards investing. Let's assess your current mutual fund investments and explore whether any adjustments are needed.

Reviewing Current Investments
Diversification Strategy
Your investment strategy reflects a diversified approach by investing in midcap, small cap, healthcare, and equity funds.

Performance Analysis
Evaluate the performance of your current funds against relevant benchmarks to gauge their effectiveness in meeting your financial goals.

Considerations for Continuation or Switching
Fund Performance
Assess the historical performance of each fund to determine if they consistently outperform their benchmarks.

Risk Appetite
Consider your risk tolerance and ensure your investment choices align with your risk appetite and financial goals.

Potential Action Steps
Consultation with a Certified Financial Planner
Seek guidance from a Certified Financial Planner (CFP) to review your investment portfolio comprehensively and ensure it aligns with your financial objectives.

Periodic Portfolio Review
Regularly review your investment portfolio to stay informed about market trends and make necessary adjustments based on changing economic conditions.

Final Recommendation
Stay Informed
Stay updated on market developments and seek professional advice when considering changes to your investment strategy.

By regularly reviewing your mutual fund portfolio and consulting with a Certified Financial Planner, you can make informed decisions to optimize your investments and work towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 07, 2025

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Meri mutual fund me investment hai hdfc flexicap fund hai bandhan small cap hai Icici large and mid hai franklin ka multi cap hai motilal oswal ka mid cap hai sbi ka quant hai kya better fund hai kya
Ans: You have chosen funds from different categories. This diversification helps in risk management. However, assessing overlap, risk levels, and performance is important.

Strengths of Your Portfolio
You have exposure to large-cap, mid-cap, small-cap, flexi-cap, and quant funds.

This ensures a balance of stability, growth potential, and high-risk high-reward investments.

Actively managed funds help in wealth creation over the long term.

Your portfolio includes funds with different investment styles. This adds flexibility.

Areas of Improvement
Too many funds from similar categories can lead to redundancy.

Some funds may have overlapping stocks. This reduces the benefit of diversification.

Small-cap and mid-cap funds carry higher risk. They can be volatile in market downturns.

Quant funds follow a rule-based approach. These may underperform during unpredictable market conditions.

Evaluating Each Fund Category
Flexi-Cap Fund
These funds invest across market capitalizations.

They provide a mix of stability from large-cap and growth potential from mid- and small-cap stocks.

Fund manager decisions impact performance.

Small-Cap Fund
Higher risk and potential for high returns.

These funds perform well in bullish markets but fall sharply in downturns.

Ideal for long-term holding but needs monitoring.

Large and Mid-Cap Fund
Balanced approach with exposure to both large-cap stability and mid-cap growth.

Less volatile than pure mid-cap or small-cap funds.

Suitable for investors who want moderate risk and returns.

Multi-Cap Fund
Invests across large, mid, and small-cap stocks with minimum allocation rules.

Provides diversification across all segments.

Performance depends on market conditions and fund manager strategy.

Mid-Cap Fund
Mid-cap stocks offer higher growth potential than large caps.

More volatile than large-cap funds but less risky than small-cap funds.

Suitable for investors with a long-term horizon.

Quant Fund
Uses mathematical models and algorithms for stock selection.

Performance depends on market trends aligning with the algorithm’s strategy.

May not always outperform actively managed funds.

Suggestions for Optimizing Your Portfolio
Reduce redundancy by limiting funds with similar stock holdings.

Review the performance of each fund against its category benchmark and peers.

Ensure that your portfolio aligns with your risk appetite and financial goals.

Mid and small-cap funds should not exceed 40-50% of your equity allocation.

Check expense ratios and exit loads before making changes.

Final Insights
Your portfolio is well-diversified but can be optimized further. Reducing overlapping funds will improve efficiency. Tracking fund performance and staying invested for the long term is key.

If needed, consult a Certified Financial Planner for detailed portfolio restructuring.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 04, 2025

Asked by Anonymous - Feb 26, 2025Hindi
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Mere pass Parag Parikh flexicap,Sbi mid cap, axis small cap ,Motilal Oswal midcap and Quant small cap fund hai in sabhi me meri SIP chal rahi hai, abhi Stock market me bahut correction hua hai mujhe lumsum investment karna hai toh inme se kis fund me karu..?
Ans: Investing a lump sum after a market correction can be a good opportunity. However, choosing the right funds requires proper analysis.

Assessing Your Current Portfolio
Flexi-cap fund: This fund invests across large, mid, and small-cap stocks. It provides diversification and stability.

Mid-cap funds: These funds invest in mid-sized companies. They offer high growth potential but come with more volatility.

Small-cap funds: These funds invest in smaller companies. They have the highest return potential but also the highest risk.

Your portfolio already has a mix of flexi-cap, mid-cap, and small-cap funds. Adding more funds from the same categories may lead to over-diversification.

Factors to Consider Before Investing Lump Sum
Market correction does not mean all stocks are undervalued. Some stocks may still be expensive.

Mid-cap and small-cap funds are volatile. Investing lump sum in these funds can be risky.

If you have a high-risk appetite, invest in small-cap or mid-cap funds. However, avoid putting the entire amount in one fund.

If you want balanced growth, allocate more to flexi-cap funds. These funds can shift between large, mid, and small caps based on market conditions.

Instead of lump sum, consider a systematic transfer plan (STP). This helps in averaging the investment over time.

Where to Invest the Lump Sum?
If you want lower risk: Invest in a flexi-cap fund. It provides stability and long-term growth.

If you want moderate risk: Invest in a mid-cap fund. These funds have strong growth potential.

If you want higher risk and higher returns: Invest in a small-cap fund. However, stay invested for at least 7-10 years.

If you are unsure, split your investment. Invest in a mix of flexi-cap, mid-cap, and small-cap funds.

Final Insights
Your portfolio already has exposure to different categories. Avoid adding too many funds.

A systematic transfer plan (STP) is better than lump sum investment in a volatile market.

Review your risk tolerance before investing in mid-cap and small-cap funds.

If markets fall further, consider staggered investing instead of putting all money at once.

Stay invested for the long term and review your portfolio regularly.

With the right strategy, your investments can grow steadily over time.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

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Sushil Sukhwani  |594 Answers  |Ask -

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Hello Sir. My Son has got offer from follwing University.. 1)University of Padua - Italy (BSC - Information Technology) - 3 years Course 2)University Of Strathclyde - UK (BSC - HON Computer Science) - 4 yrs 3)Caledonian University of Glassgow - UK (Bsc Hons Computing). 4 yrs 4) National College of Ireland (BSC - HON Computer Science Engg) - 4 yrs We are confused to select the university / country
Ans: Hello ASAD,

First and foremost, thank you for getting in touch with us. I am glad to know that your son has received offers from the above mentioned universities. As an answer to your query, I would like to tell you that a prestigious and budget-friendly education in a lively Italian environment, along with a reputable academic standing and lower living expenses is offered at the University of Padua; its 3-year BSC - Information Technology may also provide a quicker path to higher education or jobs. Coming to the University of Strathclyde, top-ranked in the UK for Computer Science, this university is renowned for its linkages with industry, research possibilities, as well as outstanding student services, offering robust employment opportunities. Next, situated in a student-centric city with budget-friendly costs in comparison to other cities in the UK, Glasgow Caledonian University focuses on hands-on, industry-focused learning with impressive graduate employment rates. The National College of Ireland provides a small, contemporary campus in Dublin with robust ties with the technology sector, internships, and employment prospects in one of Europe’s key technology hotspots.

Lastly, deciding which university and country to select depends on your son’s professional objectives, ideal learning atmosphere, budget, as well as plans for the future- whether he prefers a shorter course term, robust industrial connections, global exposure, or residing in a specific nation.

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Nayagam P

Nayagam P P  |4455 Answers  |Ask -

Career Counsellor - Answered on Apr 24, 2025

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EWS category rank female 30065 suitable NIT IIIT GFTI admission getting sir 2025
Ans: Rajeswari, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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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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