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Ramalingam Kalirajan |8151 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 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

Asked by Anonymous - Mar 13, 2024Hindi

Hi Sir , I plan to invest in the following funds for 2 years through SIP from April 24. Investment holding time frame is 15 years. Nipon India Small Cap (10K); HDFC Small Cap (10K); HDFC Mid Cap Opportunities Fund (7.5K); Motilal Oswal Nifty Mid Cap 150 Index Fund (7.5K); Mirae Assets Large & Mid Cap (5K); ICICI Pru Value Discovery (10K). All funds selected are of Growth option and Direct investment option. Requesting your expert comments in the fund selection/ amount allocation. Thanks in advance.

Ans: Your investment plan demonstrates a thoughtful approach to diversification across different market segments and fund categories. Let's evaluate your fund selection and amount allocation:

Nippon India Small Cap: Small-cap funds like Nippon India Small Cap have the potential for high growth but come with higher volatility. Considering your long-term investment horizon of 15 years, allocating 10K to this fund can be beneficial for capital appreciation over time.

HDFC Small Cap: Similar to Nippon India Small Cap, HDFC Small Cap focuses on small-cap stocks. Investing 10K in this fund further diversifies your portfolio within the small-cap segment, enhancing growth potential.

HDFC Mid Cap Opportunities Fund: Mid-cap funds like HDFC Mid Cap Opportunities Fund offer exposure to mid-sized companies with growth potential. Allocating 7.5K to this fund complements your small-cap investments and provides diversification across market segments.

Motilal Oswal Nifty Mid Cap 150 Index Fund: Index funds like Motilal Oswal Nifty Mid Cap 150 Index Fund aim to replicate the performance of the Nifty Midcap 150 Index. With 7.5K allocated to this fund, you gain exposure to mid-cap stocks with lower expense ratios compared to actively managed funds.

Mirae Asset Large & Mid Cap: Investing 5K in Mirae Asset Large & Mid Cap Fund provides exposure to both large and mid-cap stocks, offering a balanced approach to growth and stability within the portfolio.

ICICI Pru Value Discovery: Value-oriented funds like ICICI Pru Value Discovery focus on undervalued stocks with the potential for long-term growth. Allocating 10K to this fund adds a value-oriented perspective to your portfolio, complementing growth-oriented funds.

Overall, your fund selection covers a wide spectrum of market segments, including small-cap, mid-cap, large & mid-cap, and value-oriented funds, which enhances diversification and potential returns over the long term.

However, since your investment horizon is 15 years, you might consider increasing exposure to equity funds for higher growth potential, considering your risk tolerance and financial goals.

Before finalizing your investment plan, I recommend consulting with a Certified Financial Planner to ensure alignment with your financial objectives and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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