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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Apr 11, 2022

Mutual Fund Expert... more
Ajju Question by Ajju on Apr 11, 2022Hindi
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I have made the following investments in Mutual Funds recently. Please let me know if it is good to go.

Also please let me know if i can increase the SIP Amount over and above the below mentioned amount.

My aim is Long Term.

Fund Name Plan Initial Investment SIP-Monthly
Axis Small Cap Fund Growth 5,000.00 3,000.00
Canara Robeco Bluechip Equity Fund Growth 5,000.00 3,500.00
HDFC Index Sensex Plan-Growth 5,000.00 3,500.00
Paragh Parikh Flexi Cap Fund Growth 5,000.00 5,000.00

Ans: Funds are very good, 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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Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

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

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I have the following SIP investments in the below Mutual Fund plans . Please advise if I should change any ? Also ,Please advise where can I put an additional 20k per month for more investment?[SA] Quant MIdCap Direct growth Fund 5025 Quant Large and Midcap Direct Fund Growth 2025 SBI Magnum Midcap Direct Plan Growth 3001 Quant Active Direct Fund Growth 4001 Axis Nift Smallcap 50 index direct plan growth 3501 HDFC Small cap direct Plan growth 2501 ICICI Prudential BHARAT 22 FOF Direct Plan growth 5003 SBI Large and Midcap direct plan growth 3004 Nippon india Small cap Direct plan growth 5006 Quant small plan direct plan growth 3010 Quant multi assest direct plan growth 2010 ICICI Prudential Bluechip Direct plan Growth 2110
Ans: Optimizing Your SIP Investments for Long-Term Growth
With a diverse portfolio of SIP investments, it's essential to periodically review and adjust your holdings to ensure they remain aligned with your financial goals and risk tolerance. Let's evaluate your current SIP investments and explore opportunities for additional investment to enhance your portfolio's growth potential.

Reviewing Current SIP Investments
Your current SIP investments cover a wide range of fund categories, including mid-cap, large-cap, small-cap, and multi-asset funds. This diversification is beneficial for spreading risk and capturing growth opportunities across different market segments.

Analyzing Fund Performance and Suitability
While each fund serves a specific purpose in your portfolio, it's essential to evaluate their performance relative to their benchmarks and peer group. Consider factors such as historical returns, expense ratios, and fund manager expertise when assessing their suitability for your investment objectives.

Identifying Potential Changes
Based on your investment horizon, risk tolerance, and financial goals, consider the following factors when determining whether to make changes to your SIP investments:

Underperforming Funds: Review funds that consistently underperform their benchmarks or fail to meet your expectations. Consider replacing them with better-performing alternatives.

Overlapping Holdings: Identify any overlapping holdings across funds and consolidate your investments to avoid duplication and streamline your portfolio.

Risk Management: Assess the overall risk profile of your portfolio and make adjustments to ensure it aligns with your risk tolerance and investment objectives.

Exploring Additional Investment Opportunities
With a surplus of Rs. 20,000 per month available for investment, consider allocating these funds to further diversify your portfolio and capitalize on growth opportunities. Explore the following options for additional investment:

Sector-Specific Funds: Consider investing in sector-specific funds to capitalize on emerging trends and opportunities in specific industries or sectors.

International Funds: Diversify your portfolio geographically by investing in international funds that provide exposure to global markets and currencies.

Debt Funds: Balance your portfolio by investing in debt funds, which offer stable returns and act as a hedge against market volatility.

Seeking Professional Advice
Given the complexity of portfolio management and the dynamic nature of financial markets, consider consulting with a Certified Financial Planner to receive personalized advice tailored to your specific financial situation and goals. A professional can help you optimize your portfolio, identify suitable investment options, and navigate market uncertainties effectively.

Conclusion
Girish, by reviewing your current SIP investments, identifying potential changes, and exploring additional investment opportunities, you can optimize your portfolio for long-term growth and wealth accumulation. With guidance from a Certified Financial Planner, you can navigate the investment landscape with confidence and work towards achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8342 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  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 16, 2025

Money
Hi Myself Sanjeev Kumar from Himachal Pradesh, I am investing in mutual funds from last 3 years on below mutual funds through SIP 1. Aditya birla multicap fund (regular growth) ---- Rs 1000 monthly 2. Invesco India flexi Cap fund (Plan growth) ------ Rs 1000 monthly 3. Invesco India Multicap fund (regular growth) ---- Rs 1000 monthly 4. Kotak multicap fund (regular) ------------------------- Rs 1000 monthly 5. Kotak emerging equity fund (growth) --------------- Rs 1000 monthly 6. Kotak ELSS tax saver fund ------------------------------- Rs 500 monthly 7. Union tax saver fund (ELSS) ---------------------------- Rs 1500 monthly 8. Bandhan Nifty 200 momentum 30 index fund (regular plan) --- Rs 1000 9. Kotak multiasset fund ------------ Rs 1000 monthly (started a month ago) 10. UTI EFT Gold fund ------------------ Rs 1000 /- Apart from above, I am investing in below also 1. PPF ---------------- 1.5 lac annually 2. NPs ---------------- 0.5 lac annually 3. LIC ----------------- 0.5 lac annually Sir you are requested to review my portfolio, Is this portfolio good enough to produce at least 60- 70 lakhs return in next 10-12 years or some reshuffling is required. If yes kindly suggest some good funds. Hoping to hear from you soon Thanks
Ans: You have a fairly diversified portfolio with exposure across equity funds, tax-saving instruments, and fixed-income products. Let's evaluate your current portfolio:

Equity Exposure
Multicap and Flexi-cap Funds:

You have good exposure to multicap and flexi-cap funds. These funds are beneficial as they provide exposure across different market caps (large, mid, small), offering balanced risk and growth potential.
The fund choices are varied, but some of them overlap in terms of the equity segments they cover. This may lead to duplication, reducing the overall diversification.
Tax-saving ELSS Funds:

Both Kotak ELSS Tax Saver Fund and Union Tax Saver Fund provide tax benefits under Section 80C. This is an excellent strategy for reducing taxable income while simultaneously growing wealth over the long term. However, having two ELSS funds with similar objectives may not be necessary.
Consider reviewing the performance and making sure that your tax-saving investments are optimized for returns.
Nifty and Gold Exposure:

Your investment in the Bandhan Nifty 200 Momentum Index Fund introduces some exposure to index funds, but remember, index funds tend to track market performance and do not offer active management. While this can be a cost-effective option, you might miss out on higher growth opportunities that actively managed funds can offer.
Gold exposure via UTI Gold ETF is a good hedge against inflation, but it is a passive investment and does not generate income.
Fixed Income Exposure
PPF and NPS:

Your investment in PPF (Public Provident Fund) and NPS (National Pension Scheme) is a solid long-term savings strategy. These provide safety, tax benefits, and long-term growth.
PPF locks your funds for 15 years, but it offers guaranteed returns, which is an excellent option for conservative savings. NPS, however, provides exposure to equity and debt markets and is a good retirement planning tool.
LIC:

LIC investments are a combination of insurance and savings. However, considering the long-term performance and opportunity cost, it might be worth reviewing whether these investments align with your future goals or if reallocating these funds into mutual funds could offer better returns.
Investment Amount and Goals
Given your monthly SIP of Rs. 10,500 and annual investments of Rs. 2.5 lakh in PPF, NPS, and LIC, it is essential to have a clear vision of your financial goals over the next 10-12 years.

Expected Return of Rs. 60-70 Lakh:
Based on your goal of accumulating Rs. 60-70 lakh in the next 10-12 years, your current portfolio seems reasonable. However, there are areas where optimization can boost the chances of meeting your goal.
Suggested Portfolio Reshuffling
Reduce Fund Overlap:

You are holding multiple multicap funds with similar objectives. It might be wise to consolidate these into one or two strong performers to reduce duplication.
Evaluate whether the Nifty 200 index fund is in line with your preference for actively managed funds.
Focus on Actively Managed Funds:

Active Management: Actively managed funds tend to provide higher returns, especially in fluctuating markets. They also help mitigate risks, unlike index funds, which follow market movements and may not outperform during volatile periods.
Consider focusing on large-cap, mid-cap, and small-cap funds for equity growth while also ensuring there is exposure to sectoral funds and thematic funds for extra diversification.
Diversified Growth-Focused Funds:

Given your long-term horizon, including growth-oriented funds is crucial. You may consider adding more funds with a history of consistent outperformance in the equity space.
Tax Optimization:

Your tax-saving investments are well-distributed between ELSS, PPF, and NPS. However, reviewing your ELSS funds for performance is essential. Choose funds that consistently outperform their benchmark and offer strong long-term growth.
Gold Exposure:

Gold exposure via ETFs is beneficial, but consider limiting it to around 5-10% of the portfolio as a diversification hedge. You may also explore mutual funds that invest in gold.
Final Insights
Consolidate Funds: Reduce the number of funds to avoid overlap and improve focus on quality investments.
Increase Focus on Actively Managed Funds: Focus on actively managed equity funds to achieve better returns in the long run.
Evaluate Tax-Saving Instruments: Review your ELSS investments for their performance and align them with your risk profile.
Goal-Oriented Approach: Stay focused on your long-term goals and ensure that your asset allocation matches your risk tolerance and time horizon.
Finally, given your clear objective of growing wealth to reach Rs. 60-70 lakh over the next 10-12 years, restructuring your portfolio to optimize risk and returns will significantly help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8342 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2025

Asked by Anonymous - May 13, 2025
Money
Greetings!!!! I am 43 years Old, I had started 10k per month TATA AIA SIP in previous year for total 7years Plan. I want to education plan for my 1 kid who is 6 years old now. Please advice and guide me about more investments plan, as i am still confused about future growth and any plan for my wife age 38years.
Ans: You're at a critical financial stage. Planning for your child’s education and securing your family’s future are both top priorities. You've already started a ULIP, which is a start. But let’s take a deeper 360-degree view of your situation.

Below is a detailed plan, broken into simple sections for better clarity.



Assessment of Your Current ULIP Investment

You're investing Rs. 10,000 per month in a 7-year ULIP.



ULIPs mix insurance with investment. That reduces the growth power of your money.



Charges like premium allocation, fund management, and mortality charges reduce returns.



Your actual invested amount is much lower in the first few years.



ULIPs have limited flexibility in fund switching and partial withdrawal rules.



Maturity benefits are taxed if the annual premium exceeds Rs. 2.5 lakh. Be cautious of this.



A ULIP is not ideal for education goals or long-term wealth building.



As a Certified Financial Planner, I suggest surrendering this policy and moving funds to mutual funds.



You can continue till 5 years to avoid surrender charges if already started.



But do not renew after the 7-year term. Don't increase contributions in this ULIP.



Planning for Your Child’s Higher Education

Your child is 6 years old. You have around 11-12 years.



College education in India or abroad can cost Rs. 30–60 lakhs or more.



Instead of ULIPs, invest in diversified mutual funds. This will give better inflation-adjusted returns.



Use a mix of large cap, flexi cap and small cap mutual funds.



Start SIPs in these funds with a long-term horizon of 10-12 years.



You may also consider goal-based child education funds that are actively managed.



Don't invest in direct funds. They look cheaper, but don’t offer guidance.



Always invest through a Certified Financial Planner via a regular plan.



Your investment will stay aligned with your goal as the planner will guide with rebalancing.



Use a dedicated SIP only for child’s education goal. Don’t merge it with retirement planning.



Suggested Action Plan for Child’s Education

Shift future contributions from ULIP to SIPs in active funds.



Start with Rs. 20,000 per month SIP only for education.



Review this SIP every year and increase it by 10%-15% annually.



Add lump sums like bonuses or yearly increments into the same goal fund.



In the last 2 years before the education goal, shift to debt funds slowly.



This will protect your accumulated amount from equity volatility.



Investment Plan for Your Wife (Age 38)

She has a long horizon. She can invest for both retirement and her independent needs.



Open a separate mutual fund folio in her name.



Start SIPs in flexi cap, large & midcap, and hybrid funds in regular plans.



You can start with Rs. 10,000 per month and increase gradually.



You may also use her PPF account for additional tax-free corpus.



Avoid investing in gold, insurance policies, or real estate for her.



Ensure she has her own health insurance and a term insurance if she’s working.



If she’s not working, then create an emergency fund in her name.



That gives her independence and safety if she needs cash.



Family Protection with Insurance

You did not mention your term cover. You must have it if not already.



Ideal cover should be 15–20 times your yearly income.



ULIPs or LIC endowment policies should not be considered for protection.



Avoid investment-linked insurance plans. Keep insurance and investment separate.



Review your existing insurance covers. Add riders like critical illness and accident if needed.



Tax Efficient Planning

Use Section 80C wisely. Don’t just rely on ULIP or LIC plans.



Max out PPF, ELSS mutual funds, and children tuition for tax saving.



Invest in actively managed ELSS funds for better returns than ULIPs.



Avoid index funds for tax planning. They may underperform in volatile markets.



Debt funds are taxed as per slab now. Use carefully if short horizon.



Track capital gains if you sell mutual funds. Use new tax rules for equity funds:



  - LTCG above Rs. 1.25 lakh taxed at 12.5%

  

  - STCG taxed at 20%



Plan redemptions well in advance to manage taxes efficiently.



Retirement Planning (For You and Wife)

Start a separate SIP for your retirement corpus. Do not merge with other goals.



You have 17 years for retirement. That’s good for wealth accumulation.



Invest in a mix of actively managed flexi-cap and large-cap funds.



Add hybrid funds to reduce volatility as you near retirement.



Continue EPF, and increase VPF if possible. It is tax-free and safe.



Don't consider NPS if liquidity is important. Maturity rules are rigid.



Use mutual funds with regular advice to stay on track till age 60.



Exit ULIPs and Poor Insurance Products

You mentioned TATA AIA ULIP. Continue for 5 years to avoid penalty.



After that, exit and move funds to SIP in mutual funds.



If you or wife have LIC endowment, Jeevan Saral, or ULIPs, surrender them.



Reinvest maturity amount into SIPs in regular mutual fund plans.



Do not fall for insurance agents who pitch plans as tax saving or guaranteed.



Emergency Fund and Liquidity

Keep at least 6 months of family expenses in a liquid mutual fund.



Don’t use your SIP or education fund as emergency source.



You may open a separate savings bank linked sweep account for this.



This fund will help if there is any job loss, health issue, or urgent need.



What Not to Do

Don’t invest in new ULIPs or insurance-linked plans.



Avoid direct mutual fund investments. You won’t get guided rebalancing.



Do not use your child’s education fund for house down payment.



Don’t pick index funds. They underperform in sideways or bear markets.



Don’t buy land or gold as an investment for your goals.



Final Insights

You are at a very strategic life stage. You have time and income strength.



ULIPs will not help you grow wealth. Shift to goal-based mutual fund SIPs.



Separate goals: child education, your retirement, wife’s security, and emergencies.



Invest only through a Certified Financial Planner for customised long-term support.



Review all goals every year. Increase SIPs with income.



Protect family with pure term insurance and health insurance.



Focus on building wealth in regular mutual funds, not through insurance products.



Real financial freedom comes when goals are funded without stress.



You have a clear head start. Use it with discipline and right guidance.



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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