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Ramalingam

Ramalingam Kalirajan  |8259 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 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
Asked by Anonymous - May 09, 2024Hindi
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Hi all, this I month taken Quant small cap fund direct plan, Quant flexi cap fund direct plan and Motilal oswal mid cap fund direct growth fund. Is this my portfolio is correct. I'm confusing please correct me because Quant small and Quant flexi have some common stcoks. So is this good to continue or else can I choose another funds. If I'm wrong please correct my portfolio. Whats are the funds can I taken for better returns. I can handle risk. I'll hold for 10+ years.

Ans: Assessing Portfolio Composition for Long-Term Growth
Firstly, kudos to you for seeking guidance and being proactive about optimizing your investment portfolio. Let's delve into evaluating your current portfolio and exploring potential adjustments for better long-term returns.

Review of Current Portfolio Composition
Your current portfolio comprises Quant Small Cap Fund Direct Plan, Quant Flexi Cap Fund Direct Plan, and Motilal Oswal Mid Cap Fund Direct Growth. While each fund may offer growth potential, it's essential to consider portfolio diversification and overlap among holdings.

Identifying Potential Risks
As you rightly pointed out, Quant Small Cap Fund and Quant Flexi Cap Fund may have overlapping holdings, potentially leading to concentration risk. Overexposure to certain stocks or sectors can amplify portfolio volatility and hinder overall returns, especially during market downturns.

Recommendations for Optimizing Portfolio
To enhance portfolio diversification and mitigate concentration risk, consider the following adjustments:

Explore Different Fund Categories: Look into diversifying across different fund categories such as large cap, mid cap, and multi cap funds to spread risk and capture growth opportunities across market segments.
Include Funds with Unique Investment Styles: Opt for funds managed by different fund houses with distinct investment philosophies and styles. This ensures a broader range of perspectives and reduces dependence on specific fund managers or strategies.
Emphasize Quality and Consistency: Prioritize funds with a proven track record of consistent performance and adherence to investment objectives. Conduct thorough research and due diligence before making investment decisions.
Potential Fund Options for Consideration
Considering your risk appetite and long-term investment horizon, here are some fund options that you may explore for better returns:

Multi Cap Funds: These funds offer flexibility to invest across market capitalizations based on prevailing market conditions, providing a balanced approach to growth and risk management.
Value-oriented Funds: Funds focusing on value investing principles may offer attractive opportunities to capitalize on undervalued stocks with the potential for long-term growth.
Sectoral/Thematic Funds: Consider allocating a portion of your portfolio to sectoral or thematic funds to capitalize on specific growth themes or emerging sectors, provided you're comfortable with the associated risks.
Conclusion
In conclusion, while your current portfolio includes promising funds, optimizing it for better long-term returns involves diversification, minimizing overlap, and exploring varied investment opportunities. By incorporating a mix of funds across categories and investment styles, you can create a resilient portfolio poised for sustained growth over the long term.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |8259 Answers  |Ask -

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

Asked by Anonymous - May 07, 2024Hindi
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I taken Quant small cap fund direct growth, quant flexi cap fund direct growth and motilol oswal midcap cap fund. I need good mutual funds for my portfolio. Which funds can I pick. If any funds better other than this I can shift to those mutual funds. I plan to take 1. small cap(Quant) 2. mid cap 3. flexi cap(Quant or flexi or both) 4. micro cap(Motilal oswal nifty microcap 250 index fund) Is this okay. 10+ years I'll hold mutual funds. Thank you in advance.
Ans: Building a diversified mutual fund portfolio is essential for long-term wealth accumulation. You've made a good start with your selections, but let's explore some additional options to enhance your portfolio:
1. Small Cap Fund (Quant): Quant Small Cap Fund has the potential for high growth but may also carry higher risk due to the nature of small-cap stocks. Since you already have exposure to this segment, it's wise to stick with it if you believe in its growth potential.
2. Mid Cap Fund (Motilal Oswal Midcap Fund): Mid-cap funds like Motilal Oswal Midcap Fund can offer a balance between growth potential and risk. It's a solid choice for diversification.
3. Flexi Cap Funds (Quant or Flexi or Both): Flexi-cap funds provide flexibility to invest across market capitalizations based on market conditions. Since you already have exposure to Quant Flexi Cap Fund, adding another solid performer in this category can further diversify your portfolio. Look for funds managed by experienced fund managers with a consistent track record of delivering returns.
4. Micro Cap Fund (Motilal Oswal Nifty Microcap 250 Index Fund): Micro-cap funds like Motilal Oswal Nifty Microcap 250 Index Fund can offer exposure to smaller companies with high growth potential. However, micro-cap stocks can be more volatile and risky. Ensure you have a long-term investment horizon and can tolerate fluctuations in this segment.
Considering your investment horizon of 10+ years, you have the advantage of riding out market volatility and benefiting from the potential growth of small and mid-cap companies. However, it's crucial to regularly review your portfolio's performance and make adjustments if necessary. Remember, investing through regular funds with the support of a Mutual Fund Distributor (MFD) can provide emotional support and guidance, especially during market downturns. Keep investing consistently and stay focused on your long-term goals. Good luck!

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I get 81.2 percentile in jee main session 1 can I get any nit?
Ans: Priyanshi, 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 | Convert the Percentile to AIR, based on the Formula available in Google.
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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