Hi sir,I'm 27 and married this month, I want to invest 5k per month into MF and 5k into stocks, the MF risk would like to keep it low and the stocks investment could be high risk, please suggest few stock for both the categories which has diversification and also create long term wealth

Ans: ITC AND RELIANCE

Ans: It's great to see your proactive approach towards financial planning at a young age. With your solid foundation of investments and surplus income, you're well-positioned to further diversify your portfolio and potentially enhance your returns.
Given your high risk appetite, you may consider investing in equity mutual funds (MFs) to capitalize on growth opportunities while diversifying your portfolio. Here are some considerations when selecting MFs:
1. Large Cap Funds: These funds invest in large, well-established companies with a track record of stable performance. They offer relatively lower risk compared to mid-cap and small-cap funds while still providing growth potential.
2. Mid and Small Cap Funds: These funds invest in mid-sized and smaller companies with higher growth potential but also higher volatility. They can be suitable for investors with a higher risk appetite seeking potentially higher returns over the long term.
3. Sectoral or Thematic Funds: If you have a specific sector or theme you're bullish on, such as technology, healthcare, or infrastructure, you may consider investing in sectoral or thematic funds. These funds focus on specific industries or themes and can offer higher returns if the sector performs well.
4. Multi-Cap Funds: These funds invest across companies of different market capitalizations, providing diversification and flexibility. They adjust their allocations based on market conditions, making them suitable for investors seeking diversified exposure to the equity market.
Before investing, carefully assess your risk tolerance, investment horizon, and financial goals. Consider consulting with a Certified Financial Planner (CFP) who can provide personalized advice tailored to your needs and circumstances.
Remember to review your investment portfolio periodically and rebalance as needed to ensure alignment with your financial objectives. Stay disciplined with your investments and continue to invest regularly to harness the power of compounding over time.

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

Ans: You've been in the stock market for 2 years. You achieved a 17% return per year. That's impressive, given market volatility. However, you seek capital safety.

Small and mid-cap funds have given 50% returns recently. It’s natural to doubt your skills when comparing. Let’s explore your options.

Investment Options and Analysis
1. Mutual Funds: Small and Mid-Cap Funds

These funds can offer high returns.

However, they come with high risk.

Market volatility can cause significant losses.

Disadvantages of Index Funds:

Lack of active management.

May not outperform the market.

Better to opt for actively managed funds.

2. Debt Funds with 8-10% Returns

Debt funds provide stability and regular income.

They are less volatile compared to equity.

Suitable for risk-averse investors.

3. Fixed Deposits (FD) in Parents’ Accounts

FDs are very safe.

They offer guaranteed returns.

Returns might not beat inflation.

4. Direct Funds vs Regular Funds

Direct funds have lower costs.

But they lack professional management.

Regular funds through a Certified Financial Planner (CFP) are better.

CFPs provide expertise and regular reviews.

Suggested Investment Plan
1. Maintain a Balanced Portfolio

Continue with 20% in equity or mutual funds.

Equity provides growth potential.

Choose actively managed funds for better returns.

2. Allocate to Debt Funds

Invest a significant portion in debt funds.

They offer stability and moderate returns.

Ideal for your capital safety goal.

3. Use Fixed Deposits Wisely

FDs are good for risk-free returns.

Keep a portion in FDs for peace of mind.

Consider splitting FDs for liquidity.

Actionable Steps
1. Diversify Investments

Mix equity, debt, and FDs.

This balances risk and returns.

2. Increase Financial Knowledge

Learn more about market trends.

Understanding helps in better decision-making.

3. Consult a Certified Financial Planner (CFP)

A CFP can guide you effectively.

They offer tailored advice.

4. Regular Reviews

Review your portfolio every six months.

Adjust based on performance and goals.

Final Insights
Your dedication to stock trading is commendable. Safety of capital is crucial. Balancing your portfolio with mutual funds, debt funds, and FDs is wise. Actively managed funds can outperform index funds. Consulting a CFP can provide expert guidance.

Investing in FDs under your parents’ accounts is a safe bet. Debt funds provide stability. Continue a small portion in equity for growth. Regular reviews and adjustments are essential for long-term success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I would suggest you to visit a SEBI Registered Investment Advisor and seek advice from them. The following link will help you to find the nearest Adviser for you.
https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13
else share your contact details- we will get connected.