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37-Year-Old Investor Seeks Portfolio Advice for Rs.1 Crore Goal in 9 Years

Ulhas

Ulhas Joshi  | Answer  |Ask -

Mutual Fund Expert - Answered on Aug 13, 2024

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Ravi Question by Ravi on Aug 03, 2024Hindi
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My name is Ravi Verma, and I'm a 37-year-old investor. I have been investing in the following mutual funds for the past year, with a monthly investment amount ranging between 60k-90k. I plan to continue these investments for the next 9 years, aiming to reach a goal of 1 crore+. Could you please review my portfolio and advise if any changes are required or if it's good to continue as is? Current SIPs (?8k-10k per month each): HSBC Small Cap Fund - Direct Plan - Growth Aditya Birla Sun Life PSU Equity Fund - Direct Plan - Growth HDFC Small Cap Fund - Direct Plan - Growth Quant Small Cap Fund - Direct Plan - Growth HDFC Balanced Advantage Fund - Direct Plan - Growth SBI Contra Fund - Direct Plan - Growth Nippon India Growth Fund - Direct Plan - Growth Quant ELSS Tax Saver Fund - Direct Plan - Growth HDFC Retirement Savings Fund - Equity - Direct Plan - Growth Equity - Index Fund: Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - IDCW Groww Nifty Smallcap 250 Index Fund - Direct Plan - Growth Quant Multi Asset Fund - Direct Plan - Growth I don't have much knowledge in mutual funds; I chose these based on their past returns. I'm concerned about whether I'm on the right track or if any adjustments are necessary. Thank you for your guidance. Best regards, Ravi Verma

Ans: Hello Ravi & thanks for writing to me.

I see too many funds in your portfolio, which I believe can dilute your returns.

Given your age & objective, you may want to reconsider your investments in the Balanced Advantage Funds & Multi Asset Funds & instead start allocating to a multi cap fund.

I also notice investments in a PSU Equity Fund. While the PSU funds have given good returns recently, as thematic funds, you must not have a large chunk of your portfolio in them. Investing in thematic funds can generate alpha but thematic funds can also underperform.

If you can provide a percentage breakup of the investments, I may make other recommendations.
Asked on - Aug 30, 2024 | Answered on Aug 30, 2024
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Thank you sir for your time and answer , here is percentage breakup of my investment : i don't know much more about category , while investing to those funds i just saw return i did invested. 31% in Stocks [ +4.69% Return ] last 6 Months 59% in MF [ +13.62% Return ] 10% in FD [+1% Return ] My Goal is to after 10 Year , Monthly Income 1L in my account. Willing to Invest 1L - 2L per month how can i plan like that sir ? please suggest Thank you sir
Ans: Hi Ravi, taking a conservative approach, to generate a 1 Lakh per month income via Mutual Fund SWP's, you will need to have a corpus of around 2 Crore with a SWP at 6%.

Assuming your current investments are able to generate 12% XIRR, you will need to invest around Rs.85,000 every month.

As you willing to invest around Rs.1 Lakh, you should be able to generate the Rs.2 Crore corpus.
Asked on - Sep 03, 2024 | Not Answered yet
Again thank you for your time sir my current XIRR is 37.83% Any MF you would like to suggest sir ? or should i keep continue with existing funds ?
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  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

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Hi Sir, I am 37 years old. Am investing 30 k with step in below mutual funds. Please review my portfolio and let me know if it requires any adjustments . 1. Quant small cap fund direct growth. 2. Axis small cap fund direct growth. 3 . Parag parikh flexi cap fund direct grwoth. 4 ICICI prudential infrastructure fund direct growth. 5 Canara Robecco ELSS tax saver. 6 Nippon india small cap fund direct growth. 7 SBI magnum Gilt fund direct growth. 8. Aditya Birla sunlife fund direct growth.
Ans: ou have invested Rs 30,000 across multiple mutual funds. Your portfolio includes small-cap, flexi-cap, infrastructure, ELSS tax saver, and gilt funds. This diversified approach is commendable as it spreads risk and capitalises on different market segments.

Small Cap Funds
You have allocated funds to three small-cap mutual funds. Small-cap funds offer high growth potential but come with higher risk. It is crucial to monitor their performance regularly. Ensure you are comfortable with the volatility associated with small-cap investments.

Flexi Cap Fund
The flexi-cap fund in your portfolio provides flexibility to invest across market capitalizations. This fund is a good choice as it balances risk and returns. Flexi-cap funds can adapt to market changes, making them a robust component of your portfolio.

Infrastructure Fund
Your investment in an infrastructure fund targets a specific sector with long-term growth potential. Infrastructure projects are crucial for economic development, which can lead to substantial returns. However, sector-specific funds can be volatile, so keep an eye on the performance and market conditions.

ELSS Tax Saver Fund
The ELSS tax saver fund is a smart choice for tax benefits under Section 80C of the Income Tax Act. It has a lock-in period of three years, which encourages long-term investment. ELSS funds also have the potential for high returns due to their equity exposure.

Gilt Fund
The gilt fund in your portfolio invests in government securities. These funds are low-risk and provide stable returns. Gilt funds are suitable for conservative investors seeking safety and predictable income. They help balance the risk in your overall portfolio.

Assessment of Direct Growth Funds
You have chosen direct growth funds, which have lower expense ratios compared to regular funds. This can lead to higher returns over time. However, direct funds require more active management and monitoring. Consider consulting with a Certified Financial Planner for guidance.

Evaluating Portfolio Allocation
Your portfolio is diversified across different fund types, which is excellent for risk management. However, having multiple small-cap funds might increase your risk exposure. Diversifying into different sectors and market caps can provide a more balanced approach.

Recommendations for Adjustments
Consider reducing the number of small-cap funds to avoid overexposure to high risk. Adding more balanced funds or large-cap funds can provide stability. Reviewing the performance of sector-specific funds regularly is also essential.

Conclusion
Your investment choices are diversified, which is a strong point. Monitoring performance and making adjustments as needed can enhance your portfolio's potential. Consulting with a Certified Financial Planner can provide personalized advice tailored to your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 04, 2025

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Hello Sir/Ma'am, I hope you are doing good. I am currently 29 years old and i have started investing in mutual funds from December 2024. I am currently investing Rs. 30000/- every month with an annual stepup of 10%. My investment period is for 30 years. My current portfolio as follows: Flexi Cap Fund: 1. Parag parikh flexi cap fund direct growth - (Rs. 5550/-). 2. Nippon India Nifty 500 momentum 50 index fund direct growth - (Rs. 6000/-). MIDCAP FUND : 1. Kotak Nifty midcap 150 momentum 50 index fund direct growth - (Rs. 7400/-). SMALL CAP FUND : 1. TATA SMALLCAP FUND direct growth - (Rs. 3500/-). 2. Mirae assets nifty smallcap 250 momentum quality 100 index fund fof direct growth - (Rs. 5920/-). LARGE CAP FUND : 1. KOTAK NIFTY NEXT 50 INDEX FUND direct growth - (Rs. 1630/-). Could you please suggest me how is my portfolio at the moment and i would be thankful if you suggest me any changes required. Thank you.
Ans: Your investment approach is structured and disciplined. You are consistently investing and planning for long-term growth. However, some refinements can enhance your portfolio’s efficiency.

Here is a detailed evaluation of your portfolio, highlighting strengths, risks, and areas for improvement.

Positive Aspects of Your Portfolio
Consistent Investments

You are investing Rs. 30,000 per month, which is substantial.
A 10% step-up ensures growth in investment over time.
Long Investment Horizon

A 30-year investment horizon allows compounding to work effectively.
Diversification Across Market Caps

Your portfolio includes large-cap, mid-cap, small-cap, and flexi-cap funds.
This diversification reduces risk and enhances return potential.
Growth-Oriented Approach

Your funds focus on long-term capital appreciation.
Small-cap and mid-cap funds bring high-growth opportunities.
No Sectoral or Thematic Overexposure

You are not overly exposed to any single sector or theme.
This ensures a balanced risk-reward ratio.
Concerns and Areas for Improvement
Over-Reliance on Index Funds
Index funds follow a passive approach and lack active fund management benefits.
Actively managed funds can outperform index funds, especially in small-cap and mid-cap categories.
Index funds do not protect against market downturns like active funds.
You have multiple index-based investments, which may limit your upside potential.
Higher Small-Cap and Mid-Cap Allocation
Small-cap and mid-cap funds are volatile.
These funds can give high returns but can also see sharp declines.
Your current allocation may lead to higher portfolio fluctuations.
Direct Plan Disadvantages
Direct plans do not provide professional fund selection and rebalancing.
A Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD) can help optimise your portfolio.
Regular plans come with advisor expertise, which helps in long-term wealth creation.
Recommended Portfolio Adjustments
Reduce Index Fund Exposure
Replace index funds with actively managed funds for better performance.
Active fund managers adjust portfolios based on market trends, offering downside protection.
Choose funds with a strong track record of risk-adjusted returns.
Rebalance Small-Cap and Mid-Cap Allocation
Reduce small-cap exposure slightly to manage risk.
Increase flexi-cap or large-cap allocation for stability.
Balanced exposure to all market caps will create a steady portfolio.
Shift to Regular Plans for Professional Guidance
Direct funds lack expert monitoring.
A Certified Financial Planner can provide insights into market cycles.
Portfolio rebalancing and allocation adjustments will be handled professionally.
Where to Invest the Adjusted Amount
Increase Flexi-Cap Fund Allocation

A flexi-cap fund offers exposure across all market caps.
This reduces overexposure to small-cap and mid-cap.
Consider Large & Mid-Cap Funds

These funds balance growth and stability.
They provide higher returns than large-cap funds while being less volatile than small-cap.
Include Hybrid Funds for Stability

A balanced advantage fund or a dynamic asset allocation fund reduces volatility.
These funds adjust equity-debt allocation dynamically.
Add a Conservative Debt Fund

This provides stability and liquidity.
You can use it for short-term needs or rebalancing.
Final Insights
Your investment strategy is strong and goal-oriented.
Minor adjustments can improve returns and reduce risk.
Reduce index funds and switch to actively managed funds.
Diversify better between large-cap, mid-cap, and small-cap.
Shift from direct to regular plans for professional management.
A well-balanced portfolio will create long-term wealth while managing risk.
If you need further guidance, professional portfolio restructuring can help.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

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Radheshyam

Radheshyam Zanwar  |1190 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 16, 2025

Asked by Anonymous - Feb 15, 2025Hindi
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I gave 12th class exams last year scored 81% dummy school had 66 and 77 percentile in mains 1 and 2 and 90.2 percentile in mhtcet being a non Maharashtraian. 123 in bitsat. Took a drop, studied hard yet scored 60 percentile in mains 2025 first attempt. Feeling disheartened havent been able to study nicely after results. Will it be practical to focus on mains 2 as i doubt my capabilities or bitsat entirely? Or any other exam i have a good scope in? Wish to get into a tier 1 clg (have delhi domicile as i did my 12th from delhi). If yes, how do i build the momentum and get back to studies and which exam should i be focusing on since i have failed mains 1 also.
Ans: Hello dear.
Remember, the JEE exam and passing engineering from 1st tier engg college can't be a parameter of success in life If you look nearby, many people are successful, but none of them have completed their engineering from 1st tier college or cleared JEE like competitive examinations. You tried your best but failed to crack JEE in 1 or 2 attempts. No problem. You are not alone in this worst situation (as per your thinking)! You also gave the MHT-CET and got a good percentile (90.2). You could be admitted to a good private engg college with this percentile in Maharashtra. But why you did not take this decision is not clear. I would like to suggest you, please drop the idea of appearing for JEE this time and clear any state-level engineering entrance examination. Take admission to a reputed private engineering college and start you journey in a fresh mood. For your reference, there are 10 engineering colleges in India where you can get admission without a JEE score. To know more details, please copy and paste the following link into your browser- https://timesofindia.indiatimes.com/education/news/10-engineering-colleges-in-india-for-pursuing-btech-without-jee-main-2025-score/articleshow/118162587.cms.
Focus either on the state-level engineering entrance examination or choose the best options from the given link, if your financial position is strong.

If satisfied with the reply, please like and follow me, else ask again.
Thanks
Radheshyam

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Radheshyam

Radheshyam Zanwar  |1190 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 15, 2025

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My son has got 91 percentile in the recent jee exam , he has next attempt in april, but i feel its difficult for him , can i know about other good colleges in karnataka , as im based their. interested in computer science and aeronautical degree, also advise some recent good courses for his career in india.
Ans: Hello Manoj.
Do not get stressed at this stage. Even though his score is 91 percentile in 1st attempt, he can do well in 2nd attempt. But from the safer side, ask him to appear in the Karnataka State Engineering Entrance Examination also. Even if he scores less in JEE on 2nd attempt, he may good college via the state entrance examination in CSE or aeronautical engineering as per your wish. For your reference, there are 10 colleges in India where you can get admission without a JEE score. To know more details, please copy and paste the following link into your browser- https://timesofindia.indiatimes.com/education/news/10-engineering-colleges-in-india-for-pursuing-btech-without-jee-main-2025-score/articleshow/118162587.cms.
There are no such courses to be called as recent. The choice of courses depends upon the interest of your son. Hence there is no need to hurry and get into panic at this stage. Let him appear for both exams first, Ask about his interests, and then choose the course accordingly. I would be happy to suggest you after knowing his scores in JEE+State entrance + his liking.
Till then, ask him to focus only on two engineering entrance exams. Best of luck to your son for upcoming exams.

If satisfied with the reply, please like and follow me, else ask again.
Thanks
Radheshyam

...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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