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My investment in mutual funds: Is there a better option?

Ramalingam

Ramalingam Kalirajan  |8365 Answers  |Ask -

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

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
Ashwin Question by Ashwin on Feb 06, 2025Hindi
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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
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  |8365 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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Hi sir, Maine niche likhe hue sabhi fund mein mutual fund investment ki hai Small cap fund... Quant, HDFC, Mahindra, ICICI, canara rebeco Mid cap fund....Quant, HDFC, Mahindra, motilal oswal, canara rebeco Multicap fund.... HDFC and Mahindra Sectoral themetic fund... Nippon power& infra, DSp India tiger fund, ICICI manufacturing, ICICI innovation, axis manufacturing Plz mujhe suggest Karo.. aage bhi main yeh invest ment continue Karu ya . Fund change Karu...
Ans: It's great to see your diversified investment approach across different categories like small-cap, mid-cap, multicap, and sectoral thematic funds. However, the decision to continue or change your investments depends on various factors such as fund performance, your investment goals, risk tolerance, and market conditions.

Here are a few steps to consider:

Review Fund Performance: Evaluate the performance of each fund relative to its benchmark and peer group over different time frames. Look for consistency, risk-adjusted returns, and the fund manager's track record.
Assess Investment Goals: Reflect on your investment goals, time horizon, and risk tolerance. Are you investing for short-term gains or long-term wealth creation? Your goals should drive your investment decisions.
Analyze Fund Strategy: Understand the investment strategy and underlying holdings of each fund. Ensure they align with your investment objectives and risk profile. Assess if any funds are deviating from their stated strategy or experiencing manager changes.
Consider Market Conditions: Take into account current market conditions, economic outlook, and sectoral trends. Certain sectors may perform better in specific market cycles, so diversification across sectors can mitigate risks.
Consult a Financial Advisor: Seek advice from a Certified Financial Planner who can provide personalized recommendations based on your individual circumstances. They can help you assess your portfolio, identify any gaps, and suggest appropriate changes.
Ultimately, the decision to continue or change your investments should be based on a thorough analysis of fund performance, alignment with your goals, and professional advice. Regularly review your portfolio and make adjustments as needed to stay on track towards achieving your financial objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |8365 Answers  |Ask -

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

Asked by Anonymous - Jul 03, 2024Hindi
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I am 32 yr age I am central government employees my investment is 11500 mutual funds is prag parikh flaxi fund 4500, Canara rebeco bluechip direct fund 3500 Axis small cap 3500 Kya m sahi investment kr rha hu
Ans: Let's evaluate your current portfolio and provide insights on how to enhance it for long-term growth.

Analysis of Current Investments
Mutual Funds Allocation:

Parag Parikh Flexi Cap Fund: Rs 4,500
Canara Robeco Bluechip Direct Fund: Rs 3,500
Axis Small Cap Fund: Rs 3,500
Total Investment:

Rs 11,500
Your portfolio includes a mix of large-cap, flexi-cap, and small-cap funds. This diversification helps balance risk and returns.

Assessment of Direct Funds
Disadvantages of Direct Funds:

Lack of Guidance: Direct funds don't offer professional advice.
Time-Consuming: Requires active management and research.
Risk: Potential for higher risk without expert guidance.
Benefits of Regular Funds via CFP:

Expertise: Certified Financial Planners (CFPs) provide professional advice.
Convenience: Saves time on research and management.
Risk Management: CFPs help tailor investments to your risk profile.
Recommendations for Enhanced Portfolio
Diversification:

Ensure a balanced mix of equity and debt funds.
Consider adding debt funds for stability.
Long-Term Focus:

Prioritize funds with a proven track record.
Stay invested for the long term to maximize growth.
Alternative Investment Options
Mutual Funds:

Equity Funds: For long-term growth. Suitable for your age and risk profile.
Debt Funds: For stability. Balances the risk in your portfolio.
Public Provident Fund (PPF):

Benefits: Tax savings and stable returns.
Long-Term: Suitable for building a retirement corpus.
Detailed Insights on Investment Strategy
Benefits of Actively Managed Funds:

Professional Management: Managed by experienced fund managers.
Flexibility: Adjusts to market changes for better returns.
Research: Backed by extensive research and analysis.
Your Portfolio Enhancement Strategy
Balanced Portfolio:

Mix of equity and debt funds for balanced growth.
Continue SIPs for disciplined investing.
Professional Guidance:

Invest through a CFP for tailored advice.
Benefit from expert insights and risk management.
Final Insights
Your current investments are well-diversified. Consider the benefits of investing through a CFP for professional guidance. This can help you manage risks and achieve long-term growth. Regularly review and adjust your portfolio to stay aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8365 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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Dr Nagarajan J S K

Dr Nagarajan J S K   |392 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on May 14, 2025

Career
I'm preparing for Neet and wanted to take a drop but my parents wanted me to do something with it like a partial Drop......And right now I'm totally confused what to do and what not.........i think I should take BSC zoology in private colleges , can anyone suggest me something..........
Ans: Hi Prirhvi,

Based on your query, there are two main issues to consider:

1. You want to take a break (which may be partial or full).
2. You want to pursue a BSc in Zoology.

Before making any decisions, take some time to think and analyze your situation.

Firstly, evaluate your marks in the HSC and your recent NEET exam scores (if you have appeared for NEET 2025). If you have completed both exams, focus on turning your weaker subjects into strengths. Be prepared to answer any questions someone may pose. Without this preparation, taking a break may not be effective.

Secondly, if you decide to take a gap year, you should not also consider studying another course concurrently, as this could divert your attention and hinder your main goal. Remember, undergraduate courses are semester-based, meaning you will need to manage both NEET preparation and your regular UG courses (including internal exams, semester exams, etc.). Juggling both can be quite challenging.

If you believe it is possible to manage both, I suggest that instead of choosing Zoology for your UG, you consider subjects like Chemistry or Physics. These subjects are foundational and can be better understood through regular UG coursework. Therefore, you should not worry too much about that particular subject. However, it’s not advisable to select Zoology and take a break for NEET preparation at the same time. If you have doubts in Physics or Chemistry, you can seek clarification from your lecturers.

In summary, my suggestion is to concentrate on one goal and work towards achieving it.

BEST WISHES.
POOCHO. LIFE CHANGE KARO.

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Archana

Archana Deshpande  |113 Answers  |Ask -

Image Coach, Soft Skills Trainer - Answered on May 14, 2025

Asked by Anonymous - Apr 22, 2025
Career
I have always taken pride for being an empathetic and approachable leader at work. Over the years, my team members have confided in me about their personal losses, burnout, even interpersonal conflicts within the team. While I am glad that they trust me, I have also noticed that my tendency to take on their emotional weight sometimes clouds my judgment when it comes to managing performance issues. In one instance, I gave extended flexibility to someone underperforming due to personal stress, and it affected the team's morale. Do you think being a compassionate leader can affect my accountability? I feel they might be taking me for granted.
Ans: Hi!!
It is extremely important to have empathy and approachability as qualities in a leader. You have them so congratulations!!

As a leader it is important for you maintain a safe distance too , so that people don't take you for granted and that your judgement is not clouded.

You need to tell people that everyone has personal problems, so the only way forward is to shut them out when they come to work and perform to the best of their abilities.

You really can't quote one incident and draw conclusions here, you might have made a mistake as regards to this team member you are mentioning, it's ok , you are human. Forgive yourself and move on.
You need to find a balance between empathy and accountability...it's a tough job to be a leader, and a compassionate one that too. Apply the concept of "different strokes to different people at different times". Set boundaries, take care of yourself and your time. You must take care of your emotional well being too, you can't allow everyone to dump their baggage on you.

Take every experience as an experience to make you wiser, have a discerning eye and know when to put your foot down and when you need your inherent compassionate quality.

Enjoy being a leader...you really can make a difference in people's lives, but at the same time you have to take care of yourself.

All the very best...

...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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