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Seeking Investment Guidance: Which Moderate Risk Mutual Fund Schemes Suit Me?

Milind

Milind Vadjikar  |1238 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 19, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Ved Question by Ved on Sep 16, 2024Hindi
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Money

Sir, I have a moderate risk profile so which mutual funds schemes are better for me. Please help me regarding this issue.

Ans: You may consider investing in following type of mutual funds, since they have a moderate or lower risk rating inline with your risk profile:

Equity savings fund
Corporate bond fund
Dynamic bond fund
Gilt fund
Arbitrage fund
Liquid fund
Top 4 may be utilised for your investments and the remaining two fund types may be used for parking your emergency funds.
*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

Happy Investing!!
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  |8499 Answers  |Ask -

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

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Money
Which Mutual Fund is best to invest ? It must have tax savings benefit too.
Ans: Evaluating Tax-Saving Mutual Funds for Investment
As a Certified Financial Planner, I understand the importance of tax-saving investments in building long-term wealth while minimizing tax liabilities. Let's analyze the options available and identify the best tax-saving mutual fund for your investment needs.

Genuine Appreciation for Tax Planning
I appreciate your proactive approach to tax planning, which is crucial for optimizing your overall financial strategy and maximizing returns.

Understanding Tax-Saving Mutual Funds
Tax-saving mutual funds, also known as Equity Linked Savings Schemes (ELSS), offer dual benefits of tax savings under Section 80C of the Income Tax Act and the potential for long-term capital appreciation through equity investments.

Assessing Key Features
Benefits of ELSS Funds:
Tax Deduction: Investments in ELSS funds qualify for a deduction of up to Rs. 1.5 lakhs under Section 80C, reducing your taxable income.
Equity Exposure: ELSS funds invest predominantly in equities, offering the potential for higher returns compared to traditional tax-saving instruments like PPF or NSC.
Lock-in Period: ELSS funds have a lock-in period of three years, which encourages long-term investing while providing liquidity after the lock-in period expires.
Selecting the Best ELSS Fund
Criteria for Evaluation:
Track Record: Look for funds with a consistent track record of outperformance and stable returns over various market cycles.
Fund Manager Expertise: Assess the expertise and experience of the fund manager in managing equity portfolios effectively.
Expense Ratio: Consider funds with lower expense ratios to maximize returns net of expenses.
Conclusion and Recommendation
Based on the criteria mentioned above, I recommend considering ELSS funds offered by reputable fund houses with a proven track record of performance, experienced fund managers, and competitive expense ratios.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 10, 2024

Asked by Anonymous - Jun 10, 2024Hindi
Money
I want to invest in mutual funds. Can u suggest which one is the best
Ans: Understanding Mutual Funds
Mutual funds pool money from various investors to invest in diversified assets, managed by professional fund managers. They offer diversification, professional management, and potential for good returns.

Types of Mutual Funds
Mutual funds come in various types, each serving different financial goals and risk appetites.

Equity Mutual Funds
Equity funds primarily invest in stocks. They offer high return potential but come with higher risk. Suitable for long-term goals like retirement or children's education.

Debt Mutual Funds
Debt funds invest in fixed-income instruments like bonds and government securities. They are less risky and suitable for short to medium-term goals like buying a car or planning a vacation.

Hybrid Mutual Funds
Hybrid funds invest in a mix of equity and debt, offering balanced risk and returns. They suit investors seeking moderate risk with a balanced approach.

Sectoral/Thematic Funds
Sectoral funds invest in specific sectors like technology or healthcare. Thematic funds focus on themes like infrastructure or emerging markets. High-risk, high-reward category.

Active vs. Passive Funds
Active funds are managed by fund managers who make decisions to outperform the market. Passive funds track a specific index.

Disadvantages of Index Funds
While index funds have lower fees, they often underperform compared to actively managed funds during market downturns. Active fund managers can make strategic decisions to protect investments.

Benefits of Actively Managed Funds
Active funds leverage fund managers' expertise to navigate market complexities. They can adjust portfolios based on market conditions, offering potential for higher returns and better risk management.

Choosing the Right Mutual Fund
Choosing the right mutual fund requires understanding your financial goals, risk tolerance, and investment horizon.

Assessing Financial Goals
Identify your financial goals: buying a home, children's education, retirement planning, or wealth creation. Align mutual fund selection with these goals.

Understanding Risk Tolerance
Risk tolerance varies among investors. Assess your comfort with market volatility. High-risk tolerance suits equity funds; low-risk tolerance fits debt funds.

Evaluating Investment Horizon
Investment horizon influences fund selection. Short-term goals (1-3 years) align with debt funds; long-term goals (5+ years) align with equity funds.

Regular vs. Direct Funds
Regular funds involve mutual fund distributors (MFDs) and offer advisory services. Direct funds eliminate intermediaries, reducing fees but requiring self-management.

Disadvantages of Direct Funds
Direct funds save on commissions but demand significant time and knowledge. Investors may miss out on expert guidance, impacting returns and risk management.

Benefits of Regular Funds
Regular funds provide access to Certified Financial Planners (CFPs) who offer personalized advice, portfolio management, and regular monitoring. This support can optimize returns and align investments with goals.

Evaluating Fund Performance
Evaluate mutual fund performance by analyzing historical returns, consistency, and comparison with benchmarks and peer funds.

Historical Returns
Review past performance to gauge potential returns. However, past performance doesn't guarantee future results.

Consistency of Returns
Consistency is crucial. A fund with stable returns over various market cycles indicates good management.

Benchmark Comparison
Compare fund performance with relevant benchmarks. Consistent outperformance indicates strong management.

Peer Comparison
Evaluate a fund against its peers. Consistently outperforming peers signals a robust fund.

Importance of Expense Ratio
Expense ratio impacts net returns. Lower ratios are preferable, but consider the services and performance offered by the fund.

Fund Manager's Track Record
The fund manager's experience and track record are vital. A skilled manager can significantly impact fund performance.

Understanding SIP and Lump Sum Investments
Systematic Investment Plan (SIP) and lump sum investments are common ways to invest in mutual funds.

Systematic Investment Plan (SIP)
SIP allows regular, small investments. It offers rupee cost averaging and disciplined investing, reducing market timing risks.

Lump Sum Investment
Lump sum investment involves investing a large amount at once. Suitable for investors with idle cash and knowledge to time the market.

Tax Implications
Understanding tax implications is crucial for maximizing returns and planning withdrawals.

Equity Funds
Equity funds held for over a year attract long-term capital gains tax at 10% on gains exceeding Rs 1 lakh annually. Short-term gains (within a year) are taxed at 15%.

Debt Funds
Debt funds held for over three years attract long-term capital gains tax at 20% with indexation benefits. Short-term gains are taxed as per the investor's income tax slab.

Asset Allocation and Diversification
Effective asset allocation and diversification reduce risk and enhance returns.

Asset Allocation
Divide investments across asset classes based on risk tolerance and goals. A balanced mix of equity, debt, and hybrid funds can optimize returns.

Diversification
Diversify within each asset class to spread risk. Invest in different sectors, themes, and geographies to mitigate specific risks.

Monitoring and Rebalancing
Regularly monitor your investments and rebalance your portfolio to maintain desired asset allocation and align with goals.

Monitoring
Review fund performance, portfolio alignment with goals, and market conditions periodically.

Rebalancing
Adjust investments to maintain target asset allocation. Rebalancing involves selling overperforming assets and buying underperforming ones.

Importance of a Certified Financial Planner
Engaging a Certified Financial Planner (CFP) offers expert guidance, personalized advice, and ongoing support.

Expert Guidance
CFPs provide professional expertise in financial planning, investment strategies, and market analysis.

Personalized Advice
CFPs tailor investment recommendations to individual goals, risk tolerance, and financial situation.

Ongoing Support
CFPs offer continuous support, portfolio reviews, and adjustments to align with changing financial goals and market conditions.

Avoiding Common Mistakes
Avoid common investment mistakes to safeguard your wealth and optimize returns.

Chasing Past Performance
Don't rely solely on past performance. Market conditions change, and top-performing funds may not always sustain returns.

Ignoring Risk
Understand and accept the inherent risks in mutual fund investments. Choose funds aligning with your risk tolerance.

Lack of Diversification
Avoid concentrating investments in a single fund or asset class. Diversify to spread risk.

Emotional Investing
Don't let emotions drive investment decisions. Stick to your financial plan and avoid impulsive actions.

Considering Your Financial Situation
Evaluate your current financial situation, including income, expenses, liabilities, and existing investments. This helps determine how much you can invest and in which types of funds.

Evaluating Existing Investments
If you hold LIC, ULIP, or investment-cum-insurance policies, consider surrendering them and reinvesting in mutual funds. These products often have high charges and lower returns compared to mutual funds.

Importance of Financial Education
Continuous financial education empowers you to make informed investment decisions.

Staying Updated
Keep abreast of market trends, economic changes, and new investment opportunities. Knowledge enhances decision-making.

Attending Workshops
Participate in financial workshops and seminars. They provide valuable insights and updates on investment strategies and market outlooks.

Final Insights
Investing in mutual funds is a strategic way to grow wealth and achieve financial goals. Understanding different types of funds, assessing your financial situation, and aligning investments with your goals and risk tolerance are crucial steps. Engaging a Certified Financial Planner offers professional guidance, personalized advice, and ongoing support, optimizing your investment journey. Avoid common mistakes, stay educated, and regularly monitor and rebalance your portfolio to ensure it remains aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8499 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 07, 2024

Asked by Anonymous - Nov 06, 2024Hindi
Listen
Money
Sir, can you please suggest some good mutual fund in financial services. I m looking for long term and risk appetite is high. I am willing to take higher risk.
Ans: Investing in the financial services sector can offer high growth potential, especially for those with a high-risk tolerance and a long-term horizon. Let’s explore how you can approach this sector through mutual funds while considering both potential and strategic risks.

1. Understanding Sector-Specific Mutual Funds
High Growth Potential: Financial services funds focus on banks, non-banking financial companies (NBFCs), insurance firms, and other financial institutions. This sector has historically delivered good growth as the economy expands, but it is also sensitive to economic cycles.

Volatility Consideration: Financial services funds are inherently more volatile due to their dependence on economic and interest rate cycles. Investors with a high risk tolerance, like you, may find these funds suitable for long-term growth. However, they might experience sharp fluctuations during downturns.

2. Actively Managed Funds over Index Funds
Avoiding Index Funds: While index funds mirror the market’s overall performance, they don’t offer sector-focused options in financial services. Furthermore, index funds don’t leverage fund managers’ expertise in navigating specific sector cycles.

Benefits of Actively Managed Funds: Actively managed mutual funds with a skilled fund manager can capitalise on opportunities within the financial sector, making them suitable for long-term, high-risk investors. These managers carefully select high-growth financial companies and adjust the portfolio based on economic changes, thus offering better growth potential.

3. Choosing Regular Funds with an MFD & CFP
Drawbacks of Direct Funds: Direct funds may appear to have lower expense ratios, but they lack ongoing advisory support. With sector-specific funds, periodic review and expert advice become more critical due to sector volatility.

Advantages of Regular Funds: Investing in regular funds through a Mutual Fund Distributor (MFD) who holds a Certified Financial Planner (CFP) credential adds significant value. They can provide personalised guidance, help rebalance your portfolio, and ensure it aligns with your financial goals, especially given the risks of sector-specific investments.

4. Diversification within Financial Services
Select Sub-Sector Exposure: In financial services, diversification across banking, insurance, and asset management companies can offer balanced exposure. Some funds may concentrate on large-cap financial companies, while others include mid-cap and small-cap players with higher growth potential.

Balancing with Broader Equity Funds: While it’s good to capitalise on financial services, holding a portion of your portfolio in broader, diversified equity mutual funds can add stability. A high exposure to financial services may result in excessive risk during economic downturns, while broader funds provide stability and reduce sector concentration risk.

5. Tax Efficiency and Recent Rules
Equity Mutual Fund Taxation: For long-term capital gains (LTCG) above Rs 1.25 lakh, the tax rate is 12.5%. Short-term gains (STCG) attract a 20% tax. Considering these tax rules, it is best to aim for long-term holding in equity funds to optimize post-tax returns.

Rebalancing Based on Tax Implications: Working with a CFP can help you strategically rebalance based on tax efficiency, avoiding unnecessary churn and capital gains tax.

6. Monitoring and Reassessing Regularly
Regular Portfolio Review: Sector-specific funds require ongoing monitoring due to economic and market cycles. Financial services are highly sensitive to government policies, interest rate changes, and economic conditions.

Guidance from a Certified Financial Planner: A CFP can help you navigate market changes, review your portfolio annually, and adjust based on sector performance. This can help optimise your returns while keeping risk within your comfort level.

Final Insights
Investing in financial services mutual funds can align with your high-risk appetite and long-term goals. By selecting actively managed funds through an MFD with a CFP, you can maximise potential growth and leverage sector-focused insights. Diversifying within the financial sector and balancing with broader equity investments will offer stability and reduce concentrated risk. Regular monitoring and tax-efficient rebalancing are essential for achieving sustainable growth.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4850 Answers  |Ask -

Career Counsellor - Answered on May 23, 2025

Asked by Anonymous - May 22, 2025
Career
My jee mains score 76% home state haryana crl rank 344589 and obc rank 122555 male koi government college for cse or ece
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced 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.

Have some other options also as back-ups instead of relying only on JEE/JoSAA.

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 and a bright future!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4850 Answers  |Ask -

Career Counsellor - Answered on May 23, 2025

Asked by Anonymous - May 22, 2025
Career
Sir I got 76.9 percentile in jee mains ews category and 89 percentage in board. I am from Bihar but as I completed my 12 th from Bangalore so they put home state quta karnataka
Ans: Instead of relying only on JEE/JoSAA, have other back-ups such as COMEDK/KCET/PES/AEEE etc. (hope you would have registered / appeared for the same). Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced 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.

Have some other options also as back-ups instead of relying only on JEE/JoSAA.

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 and a bright future!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...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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