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

Samraat Jadhav  |2088 Answers  |Ask -

Stock Market Expert - Answered on Jun 03, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Sadik Haidry Question by Sadik Haidry on Jun 01, 2024Hindi
Listen
Money

Sir my port folio consist of (shares/rupees)BEL 50/183, Kalyan jewellers 50/364, IND HOTEL 50/572, TVS MOTORS 22/1917, RVNL100/223, IRCON 55/ 183, TATA MOTERS 50/ 901, HIMADARI SPL CHEMICAL80/350, IOCL 50/158, NTPC50/364, L&T 10/3370, HCL 51/1431, APOLLO TYRES 60/474, BANK OF MAHARASHTRA 200/59.31 PLZ REVIEW SIR ...NEED ANY CHANGES AS PLAN TO KEEP FOR LONG TERM

Ans: other than Kalyan jewelers, all are good for long term
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  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 07, 2024

Money
Dear Sir.. DPVN aged 43 investment in MF as follows 1. Kotak Multicap 5000pm since 2018 2. Canrobecco emerging equity 5000 pm since Jan 2022 3. DSP equity opportunity Rs 1000 pm since 2018 4. LIC large& Mid cap 2000 pm since 2018 5. LIC large cap Rs 2000 since 2018 6. SBI focussed equity 1000 pm 7. SBI blue chip 1000 pm 8 sbI magnum mid cap 1000 pm 9. SBI small & mid cap 1000 pm Last 4 years Should I review, continue? How would rate this folio. Please advice. DPVN 5
Ans: Dear DPVN,

Thank you for sharing the details of your mutual fund investments. I appreciate your commitment to securing your financial future. Let's carefully review your portfolio and explore opportunities for improvement. Your dedication to investing consistently is commendable and shows a strong commitment to your financial goals.

Reviewing Your Current Portfolio

Your portfolio includes a diverse mix of mutual funds. These funds span various categories, such as multicap, large cap, mid cap, and focused equity funds. This diversity helps spread risk across different market segments.

Here's a summary of your current investments:

Kotak Multicap Fund: Rs 5000 per month since 2018
Canara Robeco Emerging Equity Fund: Rs 5000 per month since January 2022
DSP Equity Opportunity Fund: Rs 1000 per month since 2018
LIC Large & Mid Cap Fund: Rs 2000 per month since 2018
LIC Large Cap Fund: Rs 2000 per month since 2018
SBI Focused Equity Fund: Rs 1000 per month
SBI Blue Chip Fund: Rs 1000 per month
SBI Magnum Mid Cap Fund: Rs 1000 per month
SBI Small & Mid Cap Fund: Rs 1000 per month
Diversification and Overlap

Your portfolio demonstrates good diversification across different fund categories. However, it's essential to assess if there's any overlap in the underlying assets. Having too many funds within the same category can lead to redundancy, which may not provide additional diversification benefits.

For example, your investments in multiple large cap and mid cap funds could result in overlapping holdings. Evaluating each fund's portfolio can help determine if they're holding similar stocks. If significant overlap is found, consolidating these investments might simplify your portfolio without compromising diversification.

Performance Evaluation

Regularly reviewing the performance of your investments is crucial. Let's look at the historical performance of these funds since you started investing. Consistently underperforming funds should be reassessed.

Kotak Multicap Fund: Multicap funds offer flexibility to invest across market capitalizations. Reviewing its performance relative to its benchmark and peers will provide insights.
Canara Robeco Emerging Equity Fund: Emerging equity funds can be volatile but offer growth potential. Since you started in 2022, it's essential to monitor its performance closely.
DSP Equity Opportunity Fund: This fund's performance since 2018 should be reviewed. Equity opportunity funds aim for growth by investing in companies with potential.
LIC Large & Mid Cap Fund and LIC Large Cap Fund: Large and mid cap funds balance growth and stability. Reviewing their returns will indicate their performance.
SBI Focused Equity Fund: Focused funds hold a limited number of stocks, aiming for higher returns. Assess its performance for consistency.
SBI Blue Chip Fund: Blue chip funds invest in established companies. Evaluate its performance against other large cap funds.
SBI Magnum Mid Cap Fund and SBI Small & Mid Cap Fund: Mid and small cap funds can offer high growth but are riskier. Review their performance since inception.
Risk Assessment

Each fund category carries different levels of risk. Large cap funds tend to be more stable, while mid and small cap funds are more volatile but offer higher growth potential. Your portfolio's risk profile should align with your risk tolerance and investment horizon.

Given your age (43), you likely have a mix of medium and long-term financial goals. Balancing risk and growth is key. Assess if your current mix aligns with your risk tolerance. If any funds seem too risky, consider reallocating to more stable options.

Expense Ratios and Fund Management

Expense ratios impact your returns. Lower expense ratios mean more of your money is working for you. Comparing the expense ratios of your funds with peers can identify cost-efficient options.

Actively managed funds, like those in your portfolio, involve fund managers making investment decisions. Evaluating the fund managers' track records can provide insights into their performance consistency.

Tax Efficiency

Tax efficiency is another important factor. Long-term capital gains tax (LTCG) applies to equity mutual funds held for over a year. Monitoring your portfolio's tax efficiency ensures you're optimizing returns while minimizing tax liabilities.

Benefits of Active Management

Actively managed funds aim to outperform the market through strategic stock selection. While they come with higher fees compared to index funds, they offer potential for higher returns. Active fund managers can navigate market volatility, making informed decisions based on research and analysis.

Disadvantages of Index Funds

Index funds track a market index and aim to match its performance. While they have lower fees, they also limit the potential for outperformance. They can't adapt to market changes or economic shifts. For investors seeking higher returns, actively managed funds offer better opportunities, despite higher costs.

Assessing Direct vs. Regular Funds

Direct mutual funds have lower expense ratios as they don't involve intermediaries. However, regular funds, invested through a Certified Financial Planner (CFP), provide professional guidance. This advice can help in selecting the right funds and managing your portfolio effectively.

Direct funds may seem cost-effective, but the expertise of a CFP can lead to better-informed decisions. Regular funds ensure your investments are aligned with your financial goals and risk tolerance. The additional cost of regular funds is justified by the personalized advice and management.

Rebalancing Your Portfolio

Periodic rebalancing aligns your portfolio with your investment strategy. Over time, some funds may perform better than others, skewing your allocation. Rebalancing ensures you're not overly exposed to any particular asset class.

Review your investments annually or semi-annually. This helps in making necessary adjustments based on market conditions and your financial goals. Selling overperforming assets and reinvesting in underperforming ones can help maintain your desired risk level.

Investment Strategy Moving Forward

To optimize your portfolio, consider the following steps:

Performance Review: Regularly review the performance of each fund. Replace consistently underperforming funds with better alternatives.

Reduce Overlap: Consolidate funds with significant overlap. This simplifies management and ensures better diversification.

Risk Alignment: Ensure your portfolio's risk profile aligns with your risk tolerance and financial goals. Adjust allocations if necessary.

Expense Ratios: Compare expense ratios and opt for cost-efficient funds. Lower expenses contribute to higher net returns.

Professional Guidance: Leverage the expertise of a Certified Financial Planner for informed decisions and strategic planning.


It's understandable to feel overwhelmed with managing multiple investments. Your diligence in saving and investing is praiseworthy. A structured approach will simplify management and enhance returns. Regularly reviewing and adjusting your portfolio ensures you're on track to achieve your financial goals.

Final Insights

Your commitment to investing regularly in mutual funds is commendable. A strategic review and rebalancing of your portfolio will enhance its performance. Consolidating overlapping funds and ensuring alignment with your risk tolerance are key steps.

Regularly monitor your investments and seek professional guidance when needed. Your financial journey is unique, and tailored advice will help you navigate it effectively. With careful planning and periodic reviews, you're well-positioned to achieve your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

Listen
Career
I am engineer with 16 years of IT experience and now a break of 11 yrs. But in 11 yrs I had been taking Quantitative aptitude lectures as a visiting faculty in various engineering and MBA colleges and also done Mutual fund certification. I haven't been siting but doing many things professionally in last 11 yrs(In my subject of interest as Maths, Teaching, Finance, Accounting, Wealth Management). I was thinking of doing ESG certification. What kind of role I would get if i am CFA ESG certified.I am looking for Professionally and intellectually engaging role where I can contribute to Society. Not a very NGO type( I have tried working with few NGO's)
Ans: I won't recommend you to go for ESG certification unless you are having a background of Env. Engg and Environmental Impact Assessment. The certificate course of ESG is costly also. I would request you to open your own academy ( if off line not possible then online) and go for only one subject. Let me know your age.Focus only on one subject. You have explored many areas and now you are perplexed. Here the questions are assigned to me through rediffmail. So second time whether your question will come to me or not is not known to anyone of us. Due to the policy I can’t share my email ID and Phone Number. But I would request you to follow me in LINKEDIN and send request so that I can accept you, then through LINKEDIN I can counsel you in the future multiple times. Through LINKEDIN I will be readily and easily accessible. I have counselled and changed thousands of lives. As long as I am there I won’t allow you to be defeated. Mind that always I am there with you like an invisible shadow to show you the right career path.

...Read more

Ravi

Ravi Mittal  |403 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 08, 2024

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