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

Ulhas Joshi  |265 Answers  |Ask -

Mutual Fund Expert - Answered on Mar 05, 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
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. Thanks.

Ans: Hello and thanks for writing to me. As your investment horizon is long term, you can consider investing in a mix of flexi cap funds, small cap funds & mid cap 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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |4803 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  |4803 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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

..Read more

Ramalingam

Ramalingam Kalirajan  |4803 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
Ramalingam

Ramalingam Kalirajan  |4803 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Listen
Money
I am looking for best Mutual Funds monthly SIP around 1000 to 2000 per month for my 2 children age 10 and 12 years, for at least 10 years. i request to you give me best mutual funds next 10 years. its very well growth every year. mutual funds not one i ready to investment in 2 or 3 mutual funds.
Ans: Investing in your children's future is a great step. Let's explore the best mutual funds for a SIP of Rs 1,000 to Rs 2,000 per month for at least 10 years.

Choose Diversified Equity Funds

Diversified equity funds can provide good growth. They invest across various sectors, reducing risk.

Opt for Flexi-cap Funds

Flexi-cap funds can invest in large, mid, and small-cap stocks. This flexibility can offer better returns over time.

Benefits of Actively Managed Funds

Actively managed funds have expert fund managers. They can adapt strategies to market conditions, aiming for higher returns.

Balanced Advantage Funds

Balanced advantage funds invest in both equity and debt. They balance risk and reward, suitable for long-term goals.

Systematic Investment Plan (SIP)

Starting a SIP helps in averaging the purchase cost. It reduces the impact of market volatility.

Consider Child-specific Funds

Some funds are tailored for children's future needs. They often have a mix of equity and debt for balanced growth.

Professional Guidance

Consult a Certified Financial Planner. They can provide a tailored plan based on your financial goals.

Review and Adjust

Regularly review your investments. Adjust if needed to stay aligned with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4803 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Listen
Money
I am 61 years and retired from central government. Getting 48000 and 30000 as pension and rent. All my retirement benefits are exhausted on building of house and education loan. I need 5000000 fifty lakhs in seven years. What i should do. This amoint to be given to my son and what way i accummulate.
Ans: I appreciate your commitment to helping your son. Let's explore ways to accumulate Rs 50 lakhs in seven years.

Evaluate Current Income and Expenses

Track your monthly income of Rs 78,000. Prioritise your essential expenses and find areas to save.

Create an Investment Plan

Consider investing in mutual funds. Actively managed funds often outperform index funds, especially in volatile markets.

Benefits of Actively Managed Funds

Actively managed funds are handled by expert fund managers. They can adapt strategies based on market conditions.

Systematic Investment Plan (SIP)

Start a SIP to invest regularly. This helps in averaging costs and reduces market risk.

Consider Balanced Funds

Balanced funds invest in both equity and debt. This provides growth and stability.

Emergency Fund

Set aside a small amount each month for emergencies. This ensures financial security without touching investments.

Avoid Real Estate and Annuities

Real estate can be illiquid and risky. Annuities often have high fees and low returns.

Seek Professional Advice

Consult a Certified Financial Planner. They can tailor a plan to help you achieve your goal.

Stay Committed and Review Regularly

Monitor your investments and make adjustments if needed. Stay focused on your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4803 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jun 30, 2024Hindi
Listen
Money
Hi I am a working women at 40. I have about 50 lacs debt in home loan. I have a house worth 2.0 crs and gold around 1 crore. I want to plan my retirement fund as I m in a high burnt out corporate job. My retirement age is 50 years. I can invest 75k monthly comfortably apart from my house emi and monthly expenses. What split do you suggest for me so that I have 4 crs corpus at the time of retirement. Thanks
Ans: You're a working woman at 40, aiming to retire at 50 with a target corpus of Rs. 4 crores. Here’s a strategic approach to achieve your goal:

Current Financial Overview
Assets: House worth Rs. 2 crores, gold valued at Rs. 1 crore.
Liabilities: Home loan debt of Rs. 50 lakhs.
Monthly Investment Capacity
Comfortable monthly investment capacity of Rs. 75,000, excluding home loan EMIs and regular expenses.
Investment Strategy
Diversified Portfolio: Allocate investments across equity and debt instruments.
Equity Allocation: Consider equity mutual funds for growth potential.
Debt Allocation: Allocate a portion to debt instruments like debt mutual funds or fixed income options for stability.
Risk Management
Diversification: Spread investments to mitigate risks associated with any single asset class.
Regular Review: Periodically review and rebalance portfolio based on market conditions and financial goals.
Retirement Corpus Projection
Target Corpus: Aim for Rs. 4 crores by age 50.
Investment Horizon: Plan investments with a focus on long-term growth and compounding.
Financial Discipline
Expense Management: Monitor and control discretionary expenses to maximize savings.
Debt Repayment: Continue servicing home loan while focusing on wealth accumulation for retirement.
Final Insights
By adopting a disciplined approach to investment, balancing risk with growth potential, and staying committed to your financial plan, you can build a substantial retirement corpus by age 50. Seek professional guidance to tailor an investment strategy aligned with your specific financial circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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