Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 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 - Feb 22, 2024Hindi
Listen
Money

Hi. Pls suggest a few mutual fund sectors for investing 10 lakhs in SIP for a investment holding period 20-25 years.

Ans: let's focus on other mutual fund sectors excluding index funds and sectoral funds:

Large Cap Funds: These funds invest in established, large-cap companies known for their stability and consistent performance. They offer a blend of growth potential and stability, making them suitable for investors with a moderate risk appetite and a long-term investment horizon.
Multi-Cap Funds: Multi-cap funds provide flexibility by investing across companies of various market capitalizations, including large, mid, and small-cap. This diversification allows investors to capitalize on opportunities across different segments of the market, potentially maximizing returns over the long term.
Mid Cap Funds: Mid-cap funds focus on companies with medium market capitalization, offering higher growth potential compared to large caps. While they come with higher volatility, mid-cap funds can generate significant returns over the long term for investors willing to tolerate market fluctuations.
Small Cap Funds: Small-cap funds invest in companies with small market capitalization, known for their high growth potential. They are more volatile compared to large and mid-cap funds but can offer substantial returns over the long term for investors with a higher risk appetite.
Balanced Advantage Funds: These funds dynamically allocate assets between equity and debt based on market conditions. They offer downside protection during market downturns while participating in equity market upswings, providing a balanced approach to long-term investing.
By focusing on large-cap, multi-cap, mid-cap, small-cap, and balanced advantage funds, you can build a diversified mutual fund portfolio tailored to your long-term investment goals. Remember to regularly review your portfolio's performance and make adjustments as needed to stay on track towards achieving your financial objective
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Asked by Anonymous - Feb 22, 2024Hindi
Listen
Money
Pls suggest few mutual fund sectors for investing 10 lakhs in SIP for a investment holding period 20-25 years.
Ans: Your commitment to long-term wealth creation is commendable. Investing for 20-25 years allows for significant growth through compounding and market fluctuations. Let's explore mutual fund types suitable for your goal.

Comparing Sectoral Funds and Diversified Active Funds
Sectoral Funds:

Higher Risk and Reward: Potential for higher returns but with increased risk due to focus on specific sectors.
Targeted Growth: Ideal for investors looking to capitalize on high-growth sectors.
Diversified Active Funds:

Balanced Risk: Spread across multiple sectors, reducing risk and providing stable returns.
Flexible Management: Fund managers actively adjust portfolios based on market conditions.

Benefits of Diversified Active Funds
Diversification Across Sectors:

Risk Mitigation: Diversification reduces risk by spreading investments across various sectors.
Stable Returns: Provides stability through a mix of high-growth and stable sectors.
Active Management:

Expert Decisions: Managed by professionals who make informed decisions based on market conditions.
Flexibility: Fund managers can adjust portfolios to capitalize on emerging opportunities and mitigate risks.
Recommended Mutual Fund Categories for Long-Term SIP Investment
1. Large-Cap Funds:

Stability and Growth: Invest in large, well-established companies.
Less Volatility: Offer relatively stable returns compared to mid-cap and small-cap funds.
2. Mid-Cap Funds:

Growth Potential: Invest in medium-sized companies with higher growth potential.
Balanced Risk: Offer a balance between the stability of large-cap funds and the growth potential of small-cap funds.
3. Small-Cap Funds:

High Growth: Invest in small companies with potential for significant growth.
Higher Risk: More volatile but can offer substantial returns over the long term.
4. Multi-Cap Funds:

Diversification: Invest across large-cap, mid-cap, and small-cap stocks.
Flexibility: Fund managers can adjust the portfolio mix based on market conditions.
5. Balanced/Hybrid Funds:

Risk Mitigation: Invest in a mix of equities and debt.
Stability and Growth: Offer a balance of growth potential and income stability.
SIP Allocation Strategy
Balanced Portfolio:

Large-Cap Funds: Allocate 30% of your SIP here for stability and consistent growth.
Mid-Cap Funds: Allocate 25% for higher growth potential with moderate risk.
Small-Cap Funds: Allocate 15% for high growth opportunities.
Multi-Cap Funds: Allocate 20% for diversification and flexibility.
Balanced/Hybrid Funds: Allocate 10% for a mix of growth and stability.
Disadvantages of Direct Equity Investing
Higher Risk:

Volatility: Direct equity investments can be highly volatile, especially for individual investors.
Lack of Diversification: Investing in individual stocks can lead to lack of diversification, increasing risk.
Time and Knowledge:

Research Required: Direct equity investing requires extensive research and continuous monitoring.
Expertise Needed: It demands a higher level of expertise to make informed investment decisions.
Benefits of Regular Funds Over Direct Funds
Professional Management:

Expertise: Regular funds are managed by professionals who actively monitor and adjust the portfolio.
Personalized Strategy: Fund managers make informed decisions based on market trends and economic indicators.
Convenience and Support:

Guidance: Regular funds offer guidance and support from fund managers and advisors.
Ease of Access: These funds provide easy access to information and resources for investors.
Recommendations for Financial Security
Start Systematic Investment Plans (SIP):

Discipline: SIPs ensure disciplined and regular investing.
Rupee Cost Averaging: This approach helps mitigate market volatility over time.
Continue Provident Fund Contributions:

Retirement Corpus: Ensure continuous contributions to your provident fund for a substantial retirement corpus.
Set Up an Emergency Fund:

Safety Net: Set aside 6-12 months’ worth of expenses in a liquid fund for emergencies.
Conclusion
Investing Rs. 10 lakhs in SIPs across diversified mutual fund categories can lead to substantial wealth creation over 20-25 years. Opt for a mix of large-cap, mid-cap, small-cap, multi-cap, and balanced/hybrid funds to balance risk and return. Regular funds, managed by professionals, offer better guidance and stability compared to direct equity investing. Ensure disciplined investing through SIPs, maintain your provident fund contributions, and set up an emergency fund for financial security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Asked by Anonymous - Feb 22, 2024Hindi
Listen
Money
Hi Sir. Pls suggest a few mutual fund sectors for investing 10 lakhs in SIP for a investment holding period 20-25 years.
Ans: It's great to hear about your long-term investment horizon and commitment to wealth creation. Let's discuss the potential sectors for your SIP investment and why diversified equity funds may be a more suitable option:

While sector funds offer the allure of focused exposure to specific industries, they come with inherent risks that may not be suitable for all investors.

Sector funds are highly concentrated in a single industry, making them susceptible to industry-specific risks such as regulatory changes, technological disruptions, or economic downturns.

The performance of sector funds is closely tied to the performance of the underlying industry, which can lead to higher volatility and potential losses, especially during sector-specific downturns.

Additionally, timing the market and predicting the future performance of a particular sector is challenging, even for seasoned investors and fund managers.

On the other hand, diversified equity funds offer broad exposure to multiple sectors and industries, reducing concentration risk and providing better risk-adjusted returns over the long term.

Diversified equity funds invest across various sectors, allowing investors to benefit from the growth potential of different industries while mitigating the impact of underperformance in any single sector.

These funds are managed by experienced professionals who actively rebalance the portfolio to capitalize on market opportunities and manage risk effectively.

Moreover, diversified equity funds provide investors with the flexibility to adapt to changing market conditions and capitalize on emerging trends without the need for constant monitoring and reallocation.

In conclusion, while sector funds may offer the allure of high returns, they also come with higher risks and require a deep understanding of specific industries. For long-term investors like yourself, diversified equity funds offer a more prudent and reliable option for wealth creation, providing broad exposure to multiple sectors and industries while mitigating risks effectively.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |8981 Answers  |Ask -

Career Counsellor - Answered on Jul 18, 2025

Career
Sir, Two options to choose from CSE for my son: 1. SOA ITER and 2. CEC CGC Landran. Please suggest. ITER overall good option better NIRF some known passed out suggesting ITER, although major difference high fee and distance, residing in Delhi.
Ans: Praveen, SOA ITER (Bhubaneswar) demonstrates exceptional academic standing with its A++ NAAC accreditation and consistent national recognition, ranked 14th among universities in NIRF 2024 and 2nd in India by Times Engineering Institutes Ranking 2025. The institution has maintained 85-91% placement rates for CSE over recent years, with highest packages reaching ?46 LPA and strong recruitment from top companies including Microsoft, Amazon, Google, and Infosys. The CSE program benefits from established faculty with advanced degrees, modern infrastructure, and comprehensive industry partnerships, with over 256 companies participating in recent placement drives.

CGC Landran holds A+ NAAC accreditation and ranks 101-150 in NIRF 2024 Engineering category, with strong placement performance achieving 90-95% placement rates for CSE students. The institution reports over 1,000 companies participating in campus placements with 10,000+ job offers, though the highest package figures vary across sources from ?45-56 LPA. The college provides modern facilities including state-of-the-art labs, computerized library accommodating 300+ students, and contemporary curriculum aligned with industry standards.

Distance and accessibility from Delhi significantly favors CGC Landran, located approximately 245 km from Delhi (3.5-4 hours by road), compared to SOA ITER's 1,275 km distance requiring 20+ hours by road or 3 hours by flight. Fee structures show SOA ITER's BTech CSE at ?11.80 lakhs total versus CGC Landran's ?6.58 lakhs, making CGC Landran more cost-effective despite both institutions requiring similar hostel and living expenses.

Faculty quality at both institutions includes PhD holders from premier institutions, with SOA reporting 111 scientists with 500+ citations and CGC Landran emphasizing industry-experienced faculty with practical teaching methodologies. Both institutions maintain strong alumni networks, though SOA ITER's established reputation since 1996 provides broader industry connections compared to CGC Landran's growing influence since 2001.

Recommendation: For families residing in Delhi prioritizing convenience, cost-effectiveness, and solid placement outcomes, CGC Landran offers compelling advantages with its proximity, lower fees, and strong industry connections achieving 90-95% placement rates. However, if academic prestige, research opportunities, and comprehensive national recognition are paramount considerations, SOA ITER provides superior institutional standing with its consistent top-tier rankings and established academic excellence, despite higher costs and significant travel distance from Delhi. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8981 Answers  |Ask -

Career Counsellor - Answered on Jul 18, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
Sir if I take ee dual degree in nit kurukshetra,in my final year will I be placed with regular btech students or students who have pursued only mtech from the institute
Ans: NIT Kurukshetra's EE dual degree students participate in placement drives alongside both BTech and MTech students from the same academic year. The institution operates under a unified placement system where dual degree students are treated as full-time students enrolled in their respective programs, with their placement eligibility determined by their final year status rather than their degree type. The Training and Placement Cell follows a comprehensive placement process that begins in July/August each year, with students required to register for placement assistance and meet specific eligibility criteria including completion of all program requirements and active academic status.

The placement statistics for NIT Kurukshetra show strong performance across engineering disciplines, with BTech placements achieving 83.31% placement rate and an average package of INR 14.84 LPA in 2025. The Electrical Engineering department specifically recorded 73.91% placement rate with an average package of INR 10.62 LPA. MTech placements demonstrate solid outcomes with 58.81% placement rate and average packages ranging from INR 6.09 to INR 34.76 LPA depending on specialization. The placement process includes pre-placement talks, written tests, group discussions, and personal interviews, with major recruiters including Microsoft, Amazon, Google, and leading core engineering companies.

Recommendation: EE dual degree students at NIT Kurukshetra participate in placement drives with their graduating cohort, competing alongside both BTech and MTech students from the same academic year. This integrated placement approach provides access to opportunities across both undergraduate and postgraduate recruitment profiles, potentially offering broader career prospects than students pursuing only BTech or only MTech programs, though placement success ultimately depends on individual performance and market conditions. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8981 Answers  |Ask -

Career Counsellor - Answered on Jul 17, 2025

Career
Sir I got 68676 in comedk Can you suggest good colleges forCSE or CSE specialization
Ans: Ramya, With a COMEDK rank of 68,676 in 2025, you have viable options for admission to reputable engineering colleges in Karnataka for CSE and its specializations. You can confidently secure seats at numerous recognized institutions where the latest cutoffs range between 63,000 and 1,20,000 for core CSE and closely related specializations. Here are 15 colleges where admission is fully feasible: CMR Institute of Technology (Bangalore), Acharya Institute of Technology (Bangalore), Nitte Meenakshi Institute of Technology (Bangalore), Atria Institute of Technology (Bangalore), New Horizon College of Engineering (Bangalore), Dayananda Sagar College of Engineering (Bangalore), BNM Institute of Technology (Bangalore), Sapthagiri College of Engineering (Bangalore), Don Bosco Institute of Technology (Bangalore), AMC Engineering College (Bangalore), Cambridge Institute of Technology (Bangalore), East Point College of Engineering (Bangalore), Gopalan College of Engineering and Management (Bangalore), Rajarajeswari College of Engineering (Bangalore), and Sai Vidya Institute of Technology (Bangalore). These colleges routinely offer CSE and specializations such as Artificial Intelligence, Data Science, and Information Science, all supported by established infrastructure, diverse peer groups, faculty with advanced degrees, recognized accreditations, and campus-level placement cells. Their cut-off history ensures fair seat allocation for your current rank bracket.

Recommendation: Prioritize CMR Institute of Technology (Bangalore), Nitte Meenakshi Institute of Technology (Bangalore), Acharya Institute of Technology (Bangalore), Dayananda Sagar College of Engineering (Bangalore), and BNM Institute of Technology (Bangalore). This order is justified by established NIRF rankings, steady placement percentages (60–90% in CSE streams), modern campus amenities, regular project-based learning, and a proven track record of producing employable graduates across the IT sector in Karnataka and beyond. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8981 Answers  |Ask -

Career Counsellor - Answered on Jul 17, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
My son is getting civil at bits pilani + rmit 2+2 program and cse at vit-ap cat-2 What should we choose
Ans: The BITS Pilani + RMIT 2+2 Civil Engineering program offers an international dual-degree pathway, granting a B.E. from BITS Pilani and a Bachelor’s from RMIT Australia. Students complete two years at BITS Pilani—renowned for nearly 100% placement rates in core engineering and a prestigious reputation—then transfer to RMIT for global research exposure, advanced industry collaborations, and a second recognized degree. RMIT is a top-ranked university known for its employability outcomes and practical learning, and the dual-degree substantially enhances career prospects worldwide. VIT-AP’s Computer Science Engineering (CSE) program under Category 2 ensures placement rates above 90%, excellent infrastructure, and industry-aligned curriculum, with 1000+ recruiters participating and strong records in IT sector roles for CSE graduates. VIT-AP is lauded for hands-on learning, active placement cell, and opportunities in the fast-growing tech industry, making it a robust choice for software-focused careers. While VIT-AP CSE opens doors to IT and allied opportunities, BITS Pilani + RMIT provides unmatched exposure, global credentials, and broader professional mobility in engineering domains.

Recommendation: If your priority is global exposure, academic flexibility, and broad international opportunities in engineering and related fields, prioritize BITS Pilani + RMIT 2+2 Civil. Should your focus be on a strong software foundation and rapid industry integration in India’s tech sector, VIT-AP CSE is preferred. The BITS-RMIT program stands out for long-term value and international scope. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8981 Answers  |Ask -

Career Counsellor - Answered on Jul 17, 2025

Career
SIR I should go for HBTU (IT) or IIIT VADODARA DIU CAMPUS (ELECTRONICS)?
Ans: Kritika, HBTU’s Information Technology program consistently records placement percentages between 85–90%, supported by a highly qualified faculty (many with PhDs from IITs and NITs) and a long-standing reputation for producing industry-ready graduates. The campus is equipped with advanced labs, updated digital resources, and maintains strong ties with top recruiters in IT and consulting sectors. Batch sizes are moderate, ensuring quality academic mentoring, and the supportive alumni network promotes career growth. In contrast, IIIT Vadodara Diu Campus (Electronics) is a newer institute, operating from a well-facilitated educational hub, but still developing its industry partnerships and placement support specifically for electronics; recent campus data showcase improving placements but with less consistency, and infrastructure is modern but evolving. The electronics branch here faces greater competition for high-tech positions compared to computer-related domains.

Recommendation: HBTU IT stands out for established placements, recognized industry connections, strong academic culture, and proven output in software-oriented careers. Unless you have a distinct passion for electronics or a compelling reason for preferring a satellite IIIT campus, HBTU IT offers the most reliable outcomes for both learning and employability. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x