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Anil

Anil Rego  |380 Answers  |Ask -

Financial Planner - Answered on Feb 03, 2023

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
N Question by N on Jan 30, 2023Hindi
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Hi Sir,Myself Sujit Singha,I am 42yrs Old,my financial goal plan with MF to achieve 40/50lcs in next 15/20yrs ...so far my existing SIP for last 5yrs are :No-1) IDFC Emerging Business Fund Reg(G) =Rs.1000/- No-2)Axis Bluechip Fund (G)=Rs.3000/- No-3)Axis Smallcap Fund Reg(G)=Rs2000/- No-4) DSP Mid Cap Fund Reg(G) =Rs.2000/- No-5) Axis FlexiCap Fund (G)=Rs.1500/- No-6) Kotak Emerging Equity Fund(G) =Rs.2000/- so any suggestion to switch or add funds and if any shares which i can hold for long time,plz advice since current market scenario high inflation ahead...which economic boost will impact ?

Ans: You have a mix of Large, Mid, Small and Flexicap funds which is good in itself to deliver good returns considering you have 15-20 Years’ time. HDFC Top 100 Fund and PGIM Midcap Fund, may be looked at for improvements based on your segment/AMC allocation. It is good to maintain 6-8 funds across categories.
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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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jan 30, 2023

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Hi sir,Myself Sujit Singha- Private sector service holder & i am 41yrs my Financial goal plan is 45/50 Lcs in next 15 to 20yrs so following investment portfolio for last 5 yrs so far & kindly suggest if any switch or new investment in MF to be done/add.No-1) IDFC Emerging Business Fund-Regu-Growth=Rs.1000/- No-2) Axis Bluechip Fund Growth =Rs.3000/- No-3) Axis Small Cap Fund Reg (G) =Rs.2000/- No-4)DSP Mid Cap Duns Reg(G) = Rs.2000/- No-5)Axis Flexi cap Fund (G) =Rs.1500/- No-6) Kotak Emerging Equity (G) =Rs.2000/- Other than this if any shares can i Hold for long term plz advice
Ans: You have a total of Rs 11,500 of SIPs per month. You will easily reach your target of Rs 50 Lakhs even in 15 years with the portfolio you are following, even after not taking into account the amount you have accumulated in the past 5 years!
And magic will happen if you increase your SIP by 10% each year as your salary increases.

However, remember that your portfolio is very aggressive, 100% equity oriented and would need a review and if required, rebalancing once a year.

My recommendations on your funds:-

1. Axis Bluechip Fund – Large Cap – Continue
2. Axis Flexicap Fund – Flexi Cap – Poor performance. Switch to Parag Parikh Flexi Cap Fund
3. Kotak Emerging Equity Fund – Mid Cap - Continue
4. DSP Mid Cap Fund – Mid Cap – Poor performance. Switch to PGIM India Midcap Opp Fund
5. IDFC Emerging Business – Small Cap - A very new fund with hardly any track record. Switch instead to SBI Small Cap Fund
6. Axis Small Cap Fund – Small Cap – Continue

..Read more

Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. I have a target net worth to reach of 5CR in 5years. I have 13 lakhs MF portfolio, and my running MF sip are 35k in quant active, 30k in parag parikh flexi cap,6k in DSP Nifty 50 equal wieght Index fund and 5k in nippon small cap.
Ans: It's great to see your proactive approach towards long-term financial planning. Given your income, expenses, and existing investments, here are some suggestions to help you achieve your target net worth of 5 crores in 5 years:

Increase SIP Contributions: Consider increasing your SIP contributions to align with your ambitious goal. You may also explore the option of stepping up SIP amounts annually to accelerate wealth accumulation.
Diversification: While your current SIPs are well-diversified, you can further enhance diversification by adding funds from different categories such as large-cap, mid-cap, and multi-cap funds. This helps spread risk and capture opportunities across market segments.
Explore Tax-Saving Investments: Utilize tax-saving investment avenues such as Equity Linked Savings Schemes (ELSS) to optimize tax benefits while building wealth. ELSS funds offer the twin benefits of tax savings under Section 80C of the Income Tax Act and potential capital appreciation.
Regular Review and Rebalancing: Regularly review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Consider rebalancing your portfolio periodically to maintain the desired asset allocation mix.
Emergency Fund: Ensure you have an adequate emergency fund set aside in a liquid instrument like a savings account or liquid mutual fund to cover unforeseen expenses without disrupting your investment portfolio.
Seek Professional Advice: Given the ambitious nature of your financial goal, consider consulting with a certified financial planner who can provide personalized advice tailored to your specific circumstances and objectives.
Remember, achieving a significant target like 5 crores in 5 years requires disciplined savings, strategic investing, and periodic reassessment of your financial plan. Stay focused on your long-term objectives and remain patient during market fluctuations.

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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Sep 20, 2023

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Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. I have a target net worth to reach of 5CR in 5years. I have 16 lakhs MF portfolio, and my running MF sip are 35k in quant active, 30k in parag parikh flexi cap,6k in DSP Nifty 50 equal wieght Index fund and 5k in nippon small cap.
Ans: It is good that you are investing a good amount per month with a saving/investment ratio of 50%. To reach your goal with current accumulated portfolio, available investment surplus (Rs 15 Lakh) and current SIPs, you need to make additional SIPs of 4.71 Lakh per month, (assuming 12% annualised return). Obviously, this is not possible given current income and cash flows. Going with the current status of investment, you will be able to accumulate 1.18 Cr by the end of 5th Year.

Your stated scenario of accumulating Rs 5 Cr is definitely very difficult to achieve, but here we will suggest a practical and logical approach toward investment. Do the step up SIPs, which means you should increase the investible surplus (SIPs) every year as your income grows say 10%. With this, you should be able to accumulate approx Rs 1.29 Cr (Assuming 12% ROI). This will reduce the deficit required. Apart from this any windfall amounts received at any time should be invested towards facilitating the goal.

Currently, your SIPs are concentrated in 2 funds which is not good. You should work on diversifying the monthly investment wisely among different categories and sectors, based on your goal requirements.

..Read more

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Asked by Anonymous - Jan 18, 2025Hindi
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hi so in 4 days im giving my jee exam and havent prepared well at all my parents hv high hope on my but i started scoring very bad due to love trap and now i really wana get into gr8 college but all the teachers around me are so very unsupoortative i get cornered by them today also i fianted in class after coresspodent called my name as i scored low..im such a disappointment in life wt should i even do?
Ans: It can be hard to deal with such a lot of stress, especially when you don't have any help. Just try the following suggestions: If not a teacher, talk to a family member, friend, or even a psychologist. Putting your feelings into words can help lighten the load.
Take care of your body by getting enough rest, water, and small foods. Fainting is a sign that your body is under a lot of stress.
Breathing exercises: When you feel stressed, try taking deep breaths. It can calm you down. There is still time to change what you might not have done as you had hoped. Focus on getting better in key and scoring areas for the next four days, based on your past preparation. Stick to NCERT for inorganic chemistry. Here, you can study physical chemistry formulas and organic reactions. Do not try to be perfect right now. Pay close attention to making sure you cover enough. Some people around you may have let you down, but that doesn't mean they don't value you. One test doesn't completely describe your life. If JEE doesn't go as planned, there are still other ways to have a great job. Don't give up hope if it doesn't happen. You can always choose between state engineering schools, private universities, or taking a year off to get ready with more help. Even though things are hard for you right now, this is not how you will always feel. Even people who are very good at what they do have low points. Don't give up on yourself, even if you feel lost. You still need to do a lot of things. All the BEST for Your Prosperous Future. Follow RediffGURUS to know more on 'Careers | Health | Money | Relationships'.

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Ramalingam

Ramalingam Kalirajan  |7592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

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Dear Sir, Please advice, what is your suggestion to me as far as investment (SIP) in Mutual Fund is concerned, SIP in Multi Cap is good or Flexi Cap is good (for achieving goals like wealth accumulation, retirement etc.)? Regards, Ashish
Ans: When deciding between Multi-Cap and Flexi-Cap mutual funds for your SIP investments, it's important to evaluate your financial goals, risk tolerance, and time horizon. Both types of funds have unique characteristics that can help in wealth accumulation and retirement planning.

Multi-Cap Funds: Key Characteristics
Diversified Portfolio: Multi-Cap funds invest across large, mid, and small-cap stocks. This provides diversification, which can help manage risks.

Risk Level: The fund is usually less volatile compared to funds that focus only on small or mid-cap stocks. However, it does carry some risk due to exposure to smaller-cap stocks.

Long-Term Growth: These funds tend to perform well over long investment horizons. They aim to balance between growth and stability.

Suitable for Moderate to Conservative Investors: If you're looking for a mix of stability and growth, multi-cap funds might be suitable.

Flexi-Cap Funds: Key Characteristics
Flexibility in Allocation: Flexi-Cap funds have the flexibility to invest across all market capitalizations – large, mid, and small-cap stocks – based on market conditions. They can adjust their portfolio dynamically.

Higher Potential for Growth: Since these funds can tilt more towards mid-cap or small-cap stocks when the market is favorable, they can offer higher growth potential in bullish markets.

Risk-Return Trade-Off: While they can offer high returns in the long run, flexi-cap funds can also be more volatile than multi-cap funds.

Best for Long-Term Growth: If you are focused on wealth accumulation and are willing to take on a bit more risk for higher returns, flexi-cap funds are a good option.

Comparison and Evaluation for Your Financial Goals
Wealth Accumulation: Both multi-cap and flexi-cap funds can help you accumulate wealth over the long term. However, flexi-cap funds generally have the edge in terms of potential returns due to their dynamic asset allocation strategy. The flexibility allows them to outperform during market rallies.

Retirement Planning: If your goal is to build a solid retirement corpus with moderate risk, multi-cap funds provide a balanced approach. These funds tend to be less volatile while providing a decent return in the long run.

Risk Consideration: Since flexi-cap funds invest more actively, they are prone to higher market fluctuations. If you are comfortable with market ups and downs, flexi-cap funds might suit you better. On the other hand, if you want lower volatility with steady growth, multi-cap funds are a safer option.

Actively Managed Funds vs Direct Plans
Why Regular Funds (via MFD) are Beneficial: When investing in mutual funds, you can invest either in direct plans or regular plans. While direct plans offer lower expense ratios, they require substantial knowledge and time to manage investments.

Professional Management: By investing through a Certified Financial Planner (CFP) or a Mutual Fund Distributor (MFD), you benefit from professional fund management. Your advisor can help tailor your SIP strategy to your goals and regularly assess fund performance, ensuring your investment remains aligned with market conditions and your risk profile.

Avoid Direct Plans if Not Knowledgeable: Direct plans may seem attractive due to lower fees, but they are suitable for those with in-depth market knowledge. Regular funds via an MFD provide you with an extra layer of support and expertise, which can be especially useful for managing volatile market conditions and long-term goals.

Final Insights
When choosing between Multi-Cap and Flexi-Cap funds, the best approach depends on your risk tolerance and financial goals. Multi-Cap funds offer diversification and stability, making them suitable for moderate risk-takers and long-term wealth accumulation. Flexi-Cap funds offer more growth potential but with higher volatility, making them ideal for those who are comfortable with higher risks for potentially higher returns.

For retirement planning, consider a mix of both types of funds, depending on your age, financial situation, and risk appetite. It's essential to periodically review your investment strategy and consult a Certified Financial Planner to ensure your SIP is on track for your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...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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