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Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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
Kishor Question by Kishor on Jun 06, 2023Hindi
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I have following mutual fund in my portfolio 1. Parag Parikh flexi cap 2. Pgim India midcap opportunity 3. Quant tax plan 4. Canera Rebecca equity tax fund Do I need to change anything,please suggest

Ans: Your portfolio appears to have a mix of flexi-cap, mid-cap, and tax-saving equity funds, providing diversification across different market segments. However, it's essential to periodically review your investments to ensure they align with your financial goals, risk tolerance, and market conditions. Here are a few considerations:

Diversification: Assess whether your portfolio is adequately diversified across different asset classes, sectors, and market capitalizations. Consider adding exposure to other sectors or asset classes if needed to reduce concentration risk.
Performance: Evaluate the performance of each fund relative to its benchmark index and peers. If any fund consistently underperforms or deviates significantly from its investment mandate, consider replacing it with a better-performing alternative.
Tax Efficiency: Since you have a tax-saving equity fund in your portfolio, ensure it aligns with your tax planning goals and provides adequate tax benefits. Evaluate its performance and tax efficiency compared to other tax-saving options.
Risk Management: Consider your risk tolerance and investment horizon when making changes to your portfolio. Ensure that the overall risk level of your investments is in line with your comfort level and financial objectives.
Professional Advice: Consult with a certified financial planner or advisor who can provide personalized recommendations based on your financial situation and goals.
Ultimately, the decision to change or maintain your portfolio depends on your individual circumstances and market outlook. Regular review and adjustment can help ensure that your investments remain aligned with your long-term financial goals.
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  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

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Hello Sir, Kindly review my mutual fund portfolio, Canara robeco value fund -5k Edelweiss mid cap fund-5k Tata small cap fund-5k JM flexi cap fund-5k NPS -5k Is there required any modifications?
Ans: Below is an analysis of your current selection and some tailored suggestions to optimize your investments further.

 

Portfolio Analysis
Your portfolio includes a diversified mix of funds, covering multiple categories such as value, mid-cap, small-cap, and flexi-cap. This diversification across various market segments can benefit your portfolio over time. Here’s a closer look at each type:

Value Fund
Value funds invest in stocks that appear to be undervalued relative to their intrinsic value. They can provide long-term growth if the chosen stocks gain value over time. However, value funds may require patience, as they tend to perform better over a longer horizon.

Mid-Cap Fund
Mid-cap funds offer a blend of growth potential and moderate risk. They are ideal for investors with a long investment horizon as they can capitalize on mid-sized companies with growth potential. Your allocation here is well-positioned for potential high returns.

Small-Cap Fund
Small-cap funds are known for their high-risk, high-reward nature. They can provide substantial returns, especially in a rising market, but also tend to be more volatile. Since these funds require a high-risk appetite, ensure they align with your risk tolerance.

Flexi-Cap Fund
Flexi-cap funds bring flexibility by investing across large, mid, and small-cap stocks based on market conditions. This adaptability helps reduce risk while capturing opportunities across market segments, making it a strong choice for diverse returns.

 

NPS Contribution
Your regular NPS contributions are a solid addition to your retirement planning. NPS offers tax benefits and is structured to build a retirement corpus with lower risk through a balanced exposure to equity and debt. However, consider increasing this contribution gradually if retirement planning is a priority, as it ensures a steady, low-cost source of income at retirement.

 

Suggested Modifications
To enhance your portfolio’s effectiveness, here are a few suggestions:

Consider Adding Large-Cap or Balanced Hybrid Fund
While mid- and small-cap funds add growth, they can also increase volatility. Adding a large-cap fund or a balanced hybrid fund can provide stability by focusing on larger, more stable companies. This would create a balanced growth cushion, especially if the market faces turbulence.

Review SIP Allocation Regularly
Reviewing your SIP allocation every 1-2 years is essential. It will allow you to assess if your goals remain aligned with market changes and personal financial growth.

Increase SIP Gradually if Possible
Consider incrementing your SIPs annually. A gradual increase of even 5-10% can make a significant difference over the years, boosting your long-term corpus without a major impact on your cash flow.

 

Final Insights
Your portfolio is strategically diversified and includes funds that can help achieve solid long-term growth. The suggested addition of a large-cap or balanced hybrid fund would help mitigate volatility and create more stability. With regular review and a slight increase in SIPs, you are well on track to building a robust financial future.

 

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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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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