Motilal Oswal has a plan under which Rs. 5L is to be deposited with them in demat and they will trade IN BLUECHIP FUNDS only and give the returns.

Is it a good investment?

Ans: This particular investment scheme primarily puts money into big company's stocks.

Over the past 3 to 5 years, this fund hasn't done as well as we'd like compared to a standard benchmark. However, if you are concerned about the fund's recent underperformance or if you need to access your money in the near term, you may consider exiting the fund.

The fund managers have been putting a lot of emphasis on specific stocks they believe in for the long term, but this approach hasn't worked out well since 2021 till date.

One of the reasons for the fund's underperformance is its heavy investments in sectors like automobiles and banks. Some specific stocks like Kotak Mahindra Bank and Bajaj FinServ didn't perform as expected.

Overall, this fund didn't provide a good balance of protection during market downturns and gains during market upswings.

If you are unsure about whether or not to continue or exit Axis Bluechip Fund, you may want to consult with a financial advisor. A financial advisor can help you assess your individual needs and goals and make a recommendation that is right for you.

Ans: Hello Rabindra & thanks for writing to me. Mirae Asset Emerging Bluechip is a good fund and you can consider investing in it provided it fits your objectives & risk profile.

If you share your risk appetite & objectives, I may recommend other schemes.

Ans: The Motilal Oswal Nifty Defence Fund is a sector-focused fund that invests in the defence sector of India. Investing in sector-specific funds like this requires careful consideration, as the risk and return dynamics are different compared to diversified equity funds.

Let's break down the fund from an investment perspective:

Key Points to Consider
1. Sector-Specific Risk
Concentration Risk: This fund focuses on a single sector, making it highly sensitive to the performance of the defence industry. If the sector underperforms, the entire portfolio could suffer.

Cyclical Nature: The defence sector is influenced by government policies, budgets, geopolitical events, and economic cycles. It's a niche sector, and its performance can be unpredictable.

2. Limited Diversification
Unlike diversified equity funds, a sector fund like this limits your exposure to just one sector. This increases risk because the entire portfolio hinges on the performance of defence-related companies.

In contrast, actively managed diversified funds spread risk across sectors, reducing dependency on the performance of any single industry.

3. Long-Term Growth Potential
Government Focus on Defence: The Indian government is increasingly focused on self-reliance in defence, making significant investments and promoting domestic manufacturing. This could be a positive long-term growth driver for the sector.

Strategic Importance: The defence sector has strategic importance and might see consistent growth due to geopolitical factors and rising defence budgets.

4. Volatility and Timing Risk
Sectoral funds, including defence, are more volatile than diversified funds. A poor market cycle or negative news related to the sector could cause sharp declines in value.

Investing in sector funds requires timing the entry and exit carefully, which can be difficult for individual investors. Missing the right timing can result in significant losses.

5. Actively Managed Funds vs. Index Funds
Index funds, like the Motilal Oswal Nifty Defence Fund, follow a passive strategy, simply tracking the index. While this lowers costs, it also limits the fund's flexibility.

Actively managed funds, on the other hand, allow fund managers to adjust portfolios dynamically based on market conditions, potentially enhancing returns and managing risk better than a passive strategy.

6. Suitability for Your Portfolio
This fund is best suited for investors with high-risk tolerance and a strong belief in the growth potential of the defence sector.

If you already have a well-diversified portfolio and are looking to allocate a small portion to sectoral bets, this fund might be considered. However, it shouldn't form a large part of your core portfolio.

For most investors, a diversified equity fund or flexi-cap fund offers a better risk-adjusted return than sectoral funds.

Final Insights
The Motilal Oswal Nifty Defence Fund offers an opportunity to capitalize on the growth of India's defence sector, but it comes with higher risk due to sectoral concentration. If you're comfortable with volatility and have a long-term investment horizon, this fund could complement a well-diversified portfolio. However, actively managed diversified funds remain a more balanced and flexible option for most investors.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: exit dmart all others good for long term

Ans: The claim you mention—"Invest Rs. 21,000 and earn $2 million per month"—is a classic red flag for a scam or fraudulent investment scheme. It is highly unlikely that reputed personalities would endorse such a scheme. Let me explain why you should approach such claims with extreme caution:

1. Unrealistic Returns
Promising an exorbitant return like $2 million per month from a small investment of Rs. 21,000 is highly unrealistic. Genuine investment platforms provide returns in line with market performance and risk levels, which are far less dramatic.
2. No Official Endorsement
Check the official websites or verified accounts of these personalities to confirm any claims. Misusing their names is a common tactic used by scammers.
3. Misleading Marketing
Fraudsters often use photos or quotes from famous individuals to make their schemes look legitimate. These endorsements are usually fake and done without the knowledge or permission of the individuals.
4. RBI Guidelines
The RBI regularly issues warnings against fraudulent schemes and platforms. It never endorses specific investment opportunities. Instead, it encourages investors to exercise due diligence.
5. Too Good to Be True
As a rule of thumb, if an offer sounds too good to be true, it probably is. Legitimate investments grow over time and require careful planning and risk management.
What You Should Do
Verify the Platform: Look for official documentation or licenses from SEBI, RBI, or other regulatory authorities.
Research: Check reviews and ratings on trusted financial websites. Look for independent sources, not just what the platform claims.
Consult an Expert: Speak to a financial advisor or investment consultant before putting your money anywhere.
Report Suspicious Activities: If you suspect fraud, report it to the Cyber Crime Cell or SEBI.
Would you like me to help you investigate this specific platform further? If yes, please provide the name or link, and I can assist.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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