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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Feb 20, 2020

Mutual Fund Expert... more
Raja Question by Raja on Feb 20, 2020Hindi
Money

I am presently doing a monthly SIP of Rs 60,000 in following funds and increase it every year by 10%. Kindly suggest me whether I am on right track or need some changes as my target is to generate at least Rs 12 crore in next 20 years for my retirement & daughter’s marriage.

  1. ICICI Bluechip Fund- Rs.3000
  2. ICICI Value Discivery-Rs.3000
  3. ICICI Mid Cap-Rs.2000
  4. ICICI Multicap- Rs.2000
  5. Motilal Oswal Multicap-35 – Rs.7000
  6. Motilal Focussed 25- Rs.2500
  7. Mirae Asset Large Cap-Rs.6000
  8. HDFC Balanced Advantage-Rs.8000
  9. Kotak Standard Multicap-Rs.6000
  10. Franklin Smaller Companies Fund- Rs.6000
  11. Axis Long Term Equity Fund-Rs.15000

 Also investing about Rs 4,00,000/annum in NPS, ULIP, LIC & FDs.

Name of the Fund Category RankMF Star Rating
A. ICICI Bluechip Fund- Rs.3000 Equity - Large Cap Fund: 2
B. ICICI Value Discivery-Rs.3000 Equity - Value Fund: 2
C. ICICI Mid Cap-Rs.2000 Equity - Mid Cap Fund: 2
D. ICICI Multicap- Rs.2000 Equity - Multi Cap Fund: 2
E. MotilalOswal Multicap-35 – Rs.7000 Equity - Multi Cap Fund: 5
F. Motilal Focussed 25- Rs.2500 Equity - Focused Fund 5
G. Mirae Asset Large Cap-Rs.6000 Equity - Large Cap Fund: 4
H. HDFC Balanced Advantage-Rs.8000 Hybrid - Balanced Advantage 4
I. Kotak Standard Multicap-Rs.6000 Equity - Multi Cap Fund: 4
J. Franklin Smaller Companies Fund- Rs.6000 Equity - Small Cap Fund: 1
K. Axis Long Term Equity Fund-Rs.15000 Equity - ELSS 5

Ans: You may continue with 4 and 5 star rated funds; for remaining you may consider from below:

Equity - Value Fund:

  1. Tata Equity Pe Fund - Growth
  2. UTI Value Opportunities Fund - Growth Plan

Equity - Multi Cap Fund:

  1. UTI Equity Fund – Growth
  2. Axis Multicap Fund – Growth

Equity - Large Cap Fund:

  1. UTI Mastershare Unit Scheme - Growth Plan
  2. LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

  1. MOSL Midcap 30 Fund – Growth
  2. DSP midcap – growth

Equity - Small Cap Fund:

  1. Kotak Small Cap Fund – Growth
  2. Axis Small cap Fund - Growth
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  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

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I am investing SIP Rs41000 per month.I am not having a proper guidance on this investments.Please go thru & give your suggestion to improve on this investments Investments: GFGPG - HDFC Large and Mid Cap Fund - Regular Plan - Growth EDWRG - ICICI Prudential Balanced Advantage Fund - Growth 3349 - ICICI Prudential Bharat Consumption Fund Growth EDWRG - ICICI Prudential Balanced Advantage Fund - Growth 1191 - ICICI Prudential Bluechip Fund - Growth 3251 - ICICI Prudential India Opportunities Fund Growth 121 - ICICI Prudential Multicap Fund - Growth 71 - ICICI Prudential Technology Fund - Growth 3443 - ICICI Prudential Flexicap Fund Growth 8019 - ICICI Prudential Technology Fund - Direct Plan - Growth 8034 - ICICI Prudential Smallcap Fund - Direct Plan - Growth 1191 - ICICI Prudential Bluechip Fund - Growth SCAG - NIPPON INDIA SMALL CAP FUND - DIRECT GROWTH PLAN GROWTH OPTION OFDG - Quant Mid Cap Fund - Growth INF966L01887 51010091­ 075/0 DIRECT 103.033 139.1977 14,000.00 14,341.96 0 .5 0 DIFGZ - Tata Digital India Fund Direct Plan Growth
Ans: investing Rs. 41,000 monthly is a great sign of discipline! It seems you're investing in several mutual funds, but let's see how we can optimize your portfolio.

Current Portfolio Analysis:

Number of Funds: Having 11 funds might be too many to manage effectively. It can be difficult to track performance and make adjustments.

Overlap: There might be overlap between some funds in terms of the stocks they invest in. This reduces diversification benefits.

Investment Strategy: Your portfolio has a mix of fund categories (Large & Mid Cap, Balanced Advantage, Sectoral, etc.). It's good, but we can improve it for your goals.

Here's why I can't give specific advice on your funds:

Performance: Past performance isn't a guarantee of future results. What did well yesterday might not do well tomorrow.

Your Goals: I don't know your investment goals (retirement, child's education, etc.) These influence the best investment choices.

Here are some suggestions to improve your portfolio:

Reduce the number of funds: Aim for 4-5 well-diversified funds across different market capitalizations (Large, Mid, and Small Cap).

Consider Asset Allocation: Decide on a strategic asset allocation based on your risk tolerance and goals. This helps you pick the right mix of asset classes (equity, debt).

Actively Managed Funds: Actively managed funds, where experienced professionals make investment decisions, can potentially outperform the market. Consider consulting a Certified Financial Planner (CFP) to help you choose these funds.

Benefits of a Regular Plan with a CFP:

Guidance: A CFP can analyze your financial situation and recommend a suitable investment strategy.

Portfolio Monitoring: They can help you track your investments and make adjustments as needed.

Goal Planning: They can help you set realistic financial goals and choose investments to achieve them.

Regular plans with a CFP might have slightly higher fees than direct plans, but the guidance can be valuable, especially for new investors.

Here are some additional thoughts:

Review Regularly: Meet with your CFP periodically to review your portfolio and adjust it as your life and goals evolve.

Stay Invested: Don't panic and redeem your investments during market downturns. A long-term view is important for building wealth.

By streamlining your portfolio, seeking professional help, and staying invested, you can increase your chances of achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

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

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

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I am 34 years old. I started investing in a SIP of 250000 per month from Nov 2023. Will be investing for 15 years to create a corpus of 30cr at 21% XIRR I am investing in 11 funds equally Hdfc mid cap Quant mid cap Motilal oswal mid cap Tata nifty midcap 150 momentum 50 index fund Quant small cap Sbi nifty small cap 250 index Hdfc large and mid cap Icici large and mid cap Quant flexi cap Parag parikh flexi cap Sbi energy opportunities fund Please suggest If I should consider any changes.
Ans: That's a very impressive start to your investment journey! A monthly SIP of Rs. 2,50,000 for 15 years shows great commitment. Let's discuss your portfolio and your ambitious target corpus:

1. Large Investment, Great Potential!

Disciplined Approach! Investing such a significant amount consistently shows discipline. This is a key factor for wealth creation.

Diversified Portfolio: Your portfolio has a mix of Mid Cap, Small Cap, Large & Mid Cap, Flexi Cap, and a Sectoral Fund (Energy). Actively managed funds like these have fund managers who try to outperform the market by picking stocks they believe will grow.

Sectoral funds focus on specific industries, amplifying the risk associated with economic fluctuations and sector-specific challenges. Their narrow investment mandate exposes investors to higher volatility and concentration risk.

Additionally, sectoral funds lack diversification, making them vulnerable to adverse market conditions within the targeted sector. Timing the entry and exit points becomes crucial due to the cyclical nature of industries, increasing the complexity of investment decisions.

Overall, while sectoral funds offer potential for higher returns during sector upswings, they entail heightened risk and may not suit investors seeking broad-based diversification and stability in their portfolios.

Direct funds lack personalized advice and ongoing support, requiring investors to navigate the complexities of the market independently. They may lead to suboptimal investment decisions due to the absence of professional guidance.

In contrast, regular funds, accessed through a Mutual Fund Distributor (MFD) with Certified Financial Planner (CFP) support, offer tailored advice aligned with individual financial goals. MFDs provide valuable insights, portfolio rebalancing, and assistance during market fluctuations, enhancing investor confidence and decision-making.

Regular funds also often provide additional services such as goal planning, tax optimization, and periodic reviews, ensuring a holistic approach to wealth management.

2. Reaching Your Target:

Ambitious Goal! Targeting a Rs. 30 crore corpus in 15 years with a 21% XIRR (internal rate of return) is highly ambitious. Historically, Equity has delivered good returns, but there are no guarantees.

Market Performance Matters! Market fluctuations can significantly impact your final corpus. A 21% XIRR might be difficult to achieve consistently over 15 years.

3. Let's Analyze Your Portfolio:

Multiple Mid Cap Funds: Having three Mid Cap Funds might lead to overlapping holdings. Consider merging some for better diversification.

Actively Managed vs. Index Funds: While actively managed funds have the potential for higher returns, they also come with higher fees. A small allocation to an Index Fund could provide broader market exposure.

4. Seek Professional Guidance:

Role of a CFP: A Certified Financial Planner (CFP) can analyze your risk tolerance, investment goals, and assess your portfolio.

Personalized Strategy: A CFP can recommend an optimized portfolio allocation that balances risk and reward to potentially maximize your returns and reach your goals.

Remember, reaching your financial goals requires a well-defined strategy, discipline, and realistic expectations of market returns. Consulting a CFP can help you create a personalized plan and increase your chances of success.

Here's the key takeaway: You've made a fantastic start! Consider consulting a CFP to fine-tune your portfolio and potentially reach your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 15, 2025

Asked by Anonymous - Mar 15, 2025Hindi
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I AM THINKING OF TAKING A LOAN OF 5,00,000 AGAINST MY CURRENT MUTUAL FUND MOTILAL OSWAL SMALL CAP FUND AND REINVEST IT IN SAME FUND FOR NEXT 3 YEARS. I DON'T WANT LIQUIDITY FOR NEXT 3-4 YEARS. SEEING THE MARKET IS LOW RIGHT NOW CAN I EXPECT A REURN? SHOULD I CONSIDER THIS OPTION?
Ans: Taking a loan against your mutual funds and reinvesting in the same fund may seem like an opportunity to maximise gains. However, this strategy carries significant risks.

Key Risks to Consider
1. Market Uncertainty
Small-cap funds are highly volatile.
A temporary market correction doesn’t guarantee strong returns in the next 3 years.
If the fund underperforms, you could face both a loan repayment burden and lower returns.
2. Interest Cost vs. Expected Returns
Loan interest rates on mutual fund pledges typically range from 9-12% per annum.
Your small-cap fund must generate higher returns than the loan rate to make this strategy profitable.
If the fund returns below 12% CAGR, your effective gains will be negligible or negative.
3. Forced Liquidation Risk
If the market corrects further, your lender may sell your pledged mutual fund units to recover the loan.
This could happen at a loss, forcing you to exit at a lower NAV.
4. Overexposure to a Single Fund
Investing additional money into the same small-cap fund increases concentration risk.
Instead, diversification across flexi-cap, mid-cap, and small-cap funds is better.
Alternative Approaches
Instead of taking a loan, consider:

SIP Investment Strategy

Continue SIPs in a staggered manner rather than a lump-sum reinvestment.
This reduces the risk of investing at an unfavourable price.
Diversified Portfolio Allocation

If markets recover, large-caps and flexi-caps may rebound earlier than small-caps.
Diversifying into these categories will balance returns and risk.
Rebalancing Your Current Portfolio

If you have underperforming funds, consider shifting money to stronger funds.
This avoids borrowing costs and interest rate risks.
Final Insights
Taking a loan against your mutual fund for reinvestment is not advisable due to the high risk of market downturns, interest costs, and forced liquidation. Instead, a disciplined SIP approach in diversified funds will offer better risk-adjusted returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Dr Dipankar

Dr Dipankar Dutta  |963 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 15, 2025

Asked by Anonymous - Mar 15, 2025Hindi
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Greetings to Gurus, I am student from Kolkata,West Bengal. I have completed my ISC in year 2020 from Commerce stream without maths. I am from Lower Middle Class Family, finance is big issue for me. After ISC I enrolled in B.COM(Hons) course from a college under Calcutta University. I was ambitious of being Chef from childhood. But during Covid times and finance problem, I haven't pursued. During my college life, My first three semesters completed online in Covid period, after the lockdown period, my fourth semester got offline and I just passed in one paper out of 4 and then my 5th semester exam got cleared after that I appeared for rest 3 papers of sem 4 and cleared 2 papers and in sixth semester cleared 3 paper out of 4. Again in 2024, I appeared for 6th sem 1 backlog paper and cleared it but don't able to clear 4th sem one backlog paper. So, I have started my UG in year 2020 but not able to clear it till 2024 because of 1 paper(Taxation) and I have last option to reappear in 2025 examination. I want to earn good in my life, suggest me some opportunities and a way to get out from this loop. Mentally getting depress also.
Ans: Hello! First of all, I really appreciate that you're sharing your situation openly. I understand that you're going through a tough time, but I want to assure you that there are always ways to move forward. You are not stuck, and there are opportunities for you to earn well and build a good career.
Step 1: Clear Your B.Com Degree (Important)
You have only one backlog paper (Taxation) left. Make it your #1 priority to clear this in 2025 because having a degree will open more opportunities.
You already passed all other subjects, so just focus on this one. If needed, get help from a tutor or YouTube courses on Taxation.
ccounting & Taxation (?25,000 - ?60,000 per month)
Since you already studied B.Com, this is a natural career path.
Learn Tally, GST Filing, Income Tax Filing.
Free courses: Government’s NPTEL, YouTube (Search “GST Filing Course India”)
I believe in you. Take the first step today! Your situation will improve within 1 year.

...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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