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Hemant

Hemant Bokil  | Answer  |Ask -

Financial Planner - Answered on Apr 27, 2023

Hemant Bokil is the founder of Sanay Investments. He has over 15 years of experience in the field of mutual funds and insurance.Besides working as a financial planner, he also hosts workshops to create financial awareness. He holds an MCom from Mumbai University.... more
Sanjay Question by Sanjay on Apr 22, 2023Hindi
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Following are my mutual funds holding investing through SIP. Request you to kinldy review the same and suggest. SBI FOCUSED EQUITY FUND GROWTH: RS 10000 PGIIM INDIA MIDCAP OPPORTUNITIES FUND GROWTH: Rs 9000 AXIS BLUECHIP FUND GROWTH: Rs 10000 MIRAE ASSET EMERGING BLUECHIP FUND GROWTH: Rs 2500 ICICI PRUDENTIAL TECHNOLOGY FUND - GROWTH: Rs 5500 CANARA ROBECO: Rs 5000

Ans: Hi Sanjay

My advice would be to exit sbi focused axis bluechip and to add uti nifty 50 index fund and ppfas flexi cap in current market scenario , rest schemes are good though canara robeco scheme name is not mentioned

Disclaimer - it my suggestion and me and my clients can have investments in suggested portfolio
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  |8611 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

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I am 43 years old and a salaried person. Started in SIP in 2018. Kindly suggest about the funds. Following are my current mutual fund investments: 1) Franklin India Prima fund Rs.1000 2) Invesco India Contra Fund Rs.6000 3) Kotak flexicap fund Rs.4000 4) Mirae Large & midcap fund Rs.2000 5) Axis Bluchip fund 3500 6) Sbi Banking & financial service fund Rs.3500 7) Axis Small cap fund Rs.5000. All i have monthly SIP. please suggest me if any changes require.
Ans: It's great to see that you've started investing in mutual funds through SIPs. Here are some suggestions regarding your current mutual fund investments:

• Diversification: You have a good mix of funds across various categories, which is essential for diversification. It's important to spread your investments across different sectors and market capitalizations to reduce risk.

• Review Performance: Periodically review the performance of your funds to ensure they are meeting your expectations and performing in line with their peers and benchmarks.

• Consider Your Goals: Reflect on your financial goals, risk tolerance, and investment horizon to determine if your current funds align with your objectives. If you have specific goals such as retirement planning or wealth accumulation, consider adjusting your portfolio accordingly.

• Evaluate Fund Managers: Assess the track record and expertise of the fund managers managing your investments. Look for consistency in performance and a clear investment strategy aligned with your goals.

• Stay Informed: Keep yourself updated with market trends, economic developments, and changes in regulations that may impact your investments. Stay connected with your financial advisor or conduct your research to make informed decisions.

• Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) or a qualified financial advisor to get personalized advice based on your financial situation and goals. They can provide valuable insights and recommendations tailored to your needs.

Overall, while your current mutual fund portfolio appears well-diversified, it's essential to periodically review and adjust your investments based on changes in your financial situation and market conditions. By staying disciplined and informed, you can work towards achieving your financial goals effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |8611 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

Asked by Anonymous - May 06, 2024Hindi
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I am 43 years old and Started SIP in 2018. Kindly suggest about the funds. Following are my current mutual fund investments: AXIS Blue Chip fund Monthly SIP of Rs 3500 Mirae Large and Mid Cap fund Monthly SIP of Rs 2000/- Invesco India contra fund Monthly SIP of Rs 6000/- Axis Small Cap Fund Monthly SIP of Rs 5000/- Kotek flexicap fund Monthly SIP of RS 4000/- Sbi Banking & Financial Services fund Monthly SIP Rs.3500 Franklin India Prima fund monthly SIP Rs.1000.
Ans: Your current mutual fund portfolio reflects a thoughtful approach to wealth accumulation through systematic investment plans (SIPs). Let's delve into each aspect of your portfolio and assess its performance and potential.

Diversification Analysis
Your portfolio comprises a mix of large-cap, mid-cap, small-cap, and flexi-cap funds, offering diversification across market segments. This diversification mitigates risk and enhances the potential for returns.

Performance Assessment
Each fund has its unique investment strategy and objectives. Analyzing their historical performance against benchmarks and peers provides insights into their efficacy in delivering returns.

Fund Selection Rationale
Your selection of funds appears to be well-researched, considering factors such as fund manager expertise, consistency in performance, and alignment with your risk tolerance and financial goals.

Active vs. Passive Management
Your focus on actively managed funds suggests a preference for capitalizing on the expertise of fund managers to navigate market fluctuations and exploit growth opportunities. This approach contrasts with passive strategies like index funds, which lack the agility and discretion of active management.

SIP vs. Lump Sum Investment
SIPs offer the advantage of rupee cost averaging, enabling you to buy more units when prices are low and fewer when prices are high. This disciplined approach to investing smoothens market volatility and fosters long-term wealth creation.

Regular Funds vs. Direct Funds
By investing through a Certified Financial Planner, you benefit from professional guidance and portfolio monitoring. Regular funds, though they may have slightly higher expense ratios compared to direct funds, offer value through expert advice, ensuring optimal fund selection and allocation.

Future Considerations
Regularly reviewing your portfolio's performance and aligning it with evolving financial goals is crucial. Periodic rebalancing may be necessary to maintain the desired asset allocation and adapt to changing market dynamics.

Conclusion
Your mutual fund portfolio reflects a prudent approach to wealth management, characterized by diversification, active management, and systematic investment. As a Certified Financial Planner, I commend your diligence and commitment to long-term financial well-being.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8611 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 05, 2024

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Sir, I have started a SIP of 1000 Rs. per month in the below Mutual Funds since August 2024. I have planned to invest in it for a period of 10-20 years. Am I going the right way and whether my mutual fund selection for SIP is good or not? I need your guidance and instructions on it please. 1) UTI Nifty 50 Index Fund (Large Cap) 2) Kotak Emerging Equity Scheme (Mid Cap) 3) Nippon India Small Cap Fund 4) SBI small Cap Fund Request for your reply sir Thanks
Ans: Your decision to start SIPs is a positive step towards building wealth in a disciplined manner. Systematic Investment Plans are the best way to invest for long-term goals because they minimize market timing risks and benefit from the power of compounding. Now, let's assess the mutual funds you've chosen.

1. Selection of Mutual Funds
You’ve invested in a good mix of large-cap, mid-cap, and small-cap funds. This diversification will help balance risks and returns, as different market segments perform differently over time. However, let’s analyse each category for a better understanding.

2. Large Cap Fund: Focus on Stability
Large Cap Funds: You have selected a large-cap index fund, which provides exposure to stable and financially strong companies. While large-cap funds are less volatile, index funds are passively managed. It means they mimic the benchmark index, which offers average returns in line with the market.

Limitations of Index Funds: Although index funds offer low expense ratios, actively managed large-cap funds can provide better returns. An experienced fund manager can outperform the index by selecting high-potential stocks. You might miss out on such opportunities with an index fund.

3. Mid Cap Fund: Balanced Growth Potential
Mid-Cap Fund: Your choice of a mid-cap fund is a good addition for growth. Mid-cap funds invest in companies with strong growth potential, though they can be volatile in the short term. Over the long term, mid-cap funds often outperform large caps but may carry higher risks.

Recommendation: Keep investing in this category for 10-20 years, as mid-caps will provide significant growth over time if held patiently.

4. Small Cap Funds: Higher Returns with Higher Risks
Small-Cap Funds: You’ve invested in two small-cap funds, which could provide the highest returns but also come with higher volatility. Small-cap funds invest in companies that are still in their growth phase, and therefore their performance can fluctuate significantly.

Diversification Risk: Having two small-cap funds might expose your portfolio to excessive risk. Instead of having multiple funds in the same category, you can consider reducing small-cap exposure and adding a balanced or multi-cap fund for better risk management.

5. Your Portfolio Diversification
Diversified Portfolio: Your portfolio has a good mix of large, mid, and small-cap funds. However, it leans more towards small-cap funds, which could increase risk over time. If you're investing for a period of 10-20 years, having a combination of large-cap (for stability), mid-cap (for growth), and a small allocation to small-cap funds will work well.

Suggestions for Optimizing Your SIP Investments
Increase Large-Cap Allocation: While your large-cap investment is in an index fund, you might want to switch to an actively managed large-cap fund. This could provide better risk-adjusted returns in the long term.

Balanced Approach: Instead of having two small-cap funds, consider reducing your exposure to small-caps. You can add a balanced or hybrid fund to bring more stability. A diversified equity fund could also serve you well.

Gradual Step-Up: As you continue investing over the years, it's important to increase your SIP contributions annually. A 10% increase in your SIP every year can help you achieve your financial goals much faster.

Final Insights
Mutual Funds for Long-Term: Your investment horizon of 10-20 years is ideal for SIPs in equity mutual funds. Equity markets perform well over the long term and SIPs help average out the cost of investment.

Rebalancing Every 2-3 Years: Keep an eye on your portfolio and review it every 2-3 years. Make sure your portfolio stays aligned with your risk tolerance and financial goals. Rebalancing can help you lock in profits from certain funds and reinvest in others.

Active vs. Passive: While your index fund choice gives market-average returns, you might benefit more from actively managed large-cap funds in the long run.

Small Cap Exposure: Reduce your exposure to small-cap funds, as they carry more risk. Having one small-cap fund is usually sufficient for the average investor. Consider adding a balanced or multi-cap fund for more stability.

Continued Discipline: Investing for 10-20 years requires patience. SIPs take time to deliver their full potential, especially in volatile markets. Stay disciplined, and avoid pausing or stopping your SIPs based on market fluctuations.

By following these steps and making small tweaks, you can create a more balanced and growth-oriented portfolio. Keep a long-term perspective and regularly increase your investments to reach your financial goals.

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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