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Advait

Advait Arora  |1263 Answers  |Ask -

Financial Planner - Answered on May 05, 2023

Advait Arora has over 20 years of experience in direct investing in stock markets in India and overseas.
He holds a masters in IT management from the University Of Wollongong, Australia, and an MBA in marketing from Charles Strut University, NewCastle, Australia.
Advait is a firm believer in the power of compounding to help his clients grow their wealth.... more
Anil Question by Anil on May 03, 2023Hindi
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I have purchased Yes Bank share, will it be good investment or I will out it?

Ans: say no to YESBANK. rather buy some better banks
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  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Asked by Anonymous - Apr 13, 2024Hindi
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Sir I have investing right now Parag Parikh flexi cap 2k,Nifty Total Market Index Fund 2k,ICICI Prudential Multi Cap Fund 1K,Nippon India Small Cap 1k,Tata Digital fund 500.Request your advice am I right in track for investing MF.
Ans: It's great to see your proactive approach to investing in mutual funds. Let's review your current portfolio and provide some insights:

Parag Parikh Flexi Cap: This fund offers diversification across market segments and has a flexible investment approach. It's a good choice for long-term growth potential.
Nifty Total Market Index Fund: Investing in an index fund provides broad market exposure and low expense ratios. It's suitable for passive investors seeking market returns.
ICICI Prudential Multi Cap Fund: This fund invests across large, mid, and small-cap stocks, providing diversification and potential for higher returns. It complements your portfolio well.
Nippon India Small Cap: Small-cap funds have the potential for high growth but come with higher volatility. Ensure you're comfortable with the risk associated with this fund.
Tata Digital Fund: Investing in thematic funds like digital funds can offer exposure to high-growth sectors. However, they tend to be more volatile and may not suit all investors.
Overall, your portfolio seems well-diversified across market segments and investment styles. However, it's essential to regularly review your investments, monitor fund performance, and adjust your portfolio as needed based on changes in your financial goals and market conditions.

Consider consulting with a Certified Financial Planner for personalized advice tailored to your specific needs and goals. They can help ensure that your investment strategy aligns with your long-term financial objectives and risk tolerance.

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Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

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Hi, I have a question about the expense ratio in mutual funds. I have invested in direct mutual funds both Parag Parikh ELSS (expense ratio - 0.69%) & Parag Parikh Flexi Cap (expense ratio - 0.57%). I have invested 25000/- each in both funds, one of my friend suggested to invest in any one of the funds as this will affect the returns for in longer period, and I am planning to invest for another 10 years in both funds. Question: Is it okay to be invested in both funds, I'm aware that the funds overlap, but I want to check on the expense ratio difference in the cost for 10 years. Can you please help me understand the calculation so that I can make a better decision? Expense ratio is calculated for the amount that I invest, either I invest 50k in one of the funds or split 25k each in both funds having a difference of 0.12% in expense ratio. How much of this will affect the end corpus and how is that I can calculate for the other mutual funds that I'm currently investing in? please suggest me on this.
Ans: You're absolutely right, even a small difference in expense ratio can affect returns over time. Here's how to analyze your situation and the impact of expense ratios:

Impact of Expense Ratio on Returns:

The expense ratio is a percentage of your investment deducted annually to cover fund management fees. A lower expense ratio means more money stays invested and has the potential to grow through compounding.

Calculating the Cost Difference:

Annual Cost Difference: Multiply the expense ratio difference (0.12%) by your total investment amount (25000 + 25000 = ?50,000). So, 0.12% * ?50,000 = ?60 per year.

Cost Difference over 10 Years: Multiply the annual cost difference (?60) by the number of years (10). This gives you ?600 as the total expense ratio cost difference over 10 years.

Is ?600 Significant?

While ?600 might seem small, it's crucial to consider the power of compounding over 10 years. Let's say you earn an average annual return of 12%. Here's a simplified comparison:

Investing in Both Funds: Your total return after 10 years would be impacted by the expense ratio difference of ?600. There's a chance you might have slightly more if you invested in the single fund with the lower expense ratio.

Investing in One Fund: This scenario eliminates the expense ratio difference, potentially leading to a slightly higher return due to slightly more money compounding over time.

Making an Informed Decision:

Diversification Benefit: Both Parag Parikh ELSS and Flexi Cap represent different fund categories (ELSS & Flexi Cap). Holding both provides diversification, which can help mitigate risk.

Expense Ratio vs. Diversification: The diversification benefit of holding both funds might outweigh the small cost difference in expense ratios.

Consider Overall Portfolio: Analyze your entire investment portfolio. If you have other diversified funds, then holding both Parag Parikh funds might be redundant.

Calculating for Other Funds:

Use the same method mentioned above. Find the expense ratio difference between the funds you're comparing and multiply it by your investment amount to get the annual cost difference. Then multiply by the number of years you plan to invest.
Recommendation:

It's difficult to definitively say whether consolidating is best. Here are some options:

Maintain Both Funds: The diversification benefit might be valuable. Track the performance of both and re-evaluate if one consistently underperforms.

Consolidate: If you have other diversified funds, consider consolidating to the fund with the lower expense ratio.

Invest More in Lower Expense Ratio Fund: Increase your investment proportionally in the Parag Parikh Flexi Cap (lower expense ratio) to potentially gain a slight edge over time.

Consulting a Financial Advisor:

A financial advisor can analyze your entire portfolio, risk tolerance, and goals to provide a personalized recommendation.

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Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

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Age 37, investing from last 1 year.I want to review my portfolio.Also want to add 5000 more sip should I add new fund or increase in existing funds. Current portfolio. Parag pareg flexi cap-7500 Hdfc index sensex plan-7500 Nippon small cap-4500 Tata small cap-2500 Kotak emerging equity -7500 Investment horizon -12+ years
Ans: Considering your investment horizon and existing portfolio, here are some suggestions for reviewing and potentially adding SIP:

Portfolio Review:
Parag Parikh Flexi Cap: Continue holding as it offers diversification across market segments.
HDFC Index Sensex Plan: Since it's an index fund, it provides stability and diversification. Consider reviewing its performance relative to its benchmark.
Nippon Small Cap and Tata Small Cap: Small-cap funds are volatile but have potential for high returns. Monitor their performance closely.
Kotak Emerging Equity: Evaluate its performance and consistency compared to peer funds in the same category.
Adding Rs 5,000 more SIP:
Consider adding to existing funds to maintain portfolio diversity and avoid overconcentration.
Since you already have exposure to small-cap and flexi-cap funds, you may consider adding to a large-cap or mid-cap fund to further diversify your portfolio.
Alternatively, you could explore adding a multi-cap fund to gain exposure across different market segments within a single fund.
New Fund vs. Existing Funds:
Assess the performance and potential of your existing funds before deciding to add to them.
If you're satisfied with the performance of your current funds and believe they still have growth potential, consider increasing your SIP amounts in them.
However, if you're looking to further diversify or explore new investment opportunities, adding a new fund with a different investment objective or strategy could be beneficial.
Consultation:
Consider consulting with a Certified Financial Planner to review your portfolio and receive personalized advice tailored to your financial goals and risk tolerance.
Regularly reviewing your portfolio and making adjustments as needed will help ensure that your investments remain aligned with your long-term financial objectives.

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Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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am 40 plan to get 1cr in next 10 year how much invest? Please suggest which mutual funds are good
Ans: To accumulate 1 crore in 10 years, you need to calculate the required monthly investment based on your expected rate of return. Here's a general approach:

Determine the expected rate of return: Based on historical data, a reasonable expectation for annual returns from equity mutual funds could be around 12-15%.
Use a financial calculator or online SIP calculator to find the monthly investment required to reach 1 crore in 10 years at your expected rate of return.
Once you have the required monthly investment amount, consider allocating it across a diversified portfolio of mutual funds. Look for funds with a track record of consistent performance, experienced fund managers, and aligned investment philosophy.
Since you have a 10-year investment horizon, you can afford to take some risk for potentially higher returns. Consider a mix of equity-oriented funds such as large-cap, mid-cap, and multi-cap funds to diversify across market segments and manage risk effectively.
Regularly review your investments and make adjustments as needed based on changes in your financial goals, market conditions, and risk tolerance.
Consult with a Certified Financial Planner for personalized advice tailored to your specific needs and goals.
By investing systematically in mutual funds and staying disciplined with your investment strategy, you can work towards achieving your goal of accumulating 1 crore in 10 years.

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Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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I am planning to investing Rs 30000 in SIP. My funds are Parag parikh flexi cap- 5000, motilal oswal nifty 150 midcap index fund- 4000, icici prudential value discovery fund- 3000, mirae large and midcap fund - 6000, quant small cap- 4000, uti index fund - 6000. Can you pls suggest me one more fund/sector where I can invest rest of the amount. My goal is 10+ years.
Ans: Considering your existing portfolio, here's a suggestion for investing the remaining amount of Rs 6,000 in a SIP:

Since you already have exposure to flexi-cap, mid-cap, large & mid-cap, small-cap, and index funds, you may consider diversifying further into a sectoral fund for potential growth opportunities.
Sectoral funds focus on specific sectors of the economy such as banking, technology, healthcare, etc. Depending on your risk appetite and investment outlook, you can choose a sector that aligns with your beliefs about future growth prospects.
Conduct thorough research on the performance, historical returns, and outlook of various sectors before making a decision. Consider factors like economic trends, government policies, and global market conditions that may impact the chosen sector.
Remember to maintain a balanced portfolio by not allocating too much to a single sector. Diversification across sectors can help reduce risk and enhance long-term returns.
Regularly review your investments and make adjustments as needed based on changes in your financial goals, market conditions, and risk tolerance.
Consult with a Certified Financial Planner for personalized advice tailored to your specific needs and goals.
By diversifying your SIP investments across different sectors and asset classes, you can potentially maximize returns while managing risk effectively over the long term.

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Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

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Hi Experts, I am 35 years old and having SIPs in below mutual funds ICICI prudential Long Term equity fund (Tax Saving) Direct Plan Growth - SIP - Rs 3500 Axis Long term Equity Direct plan Growth (tax Saving)- SIP - Rs 3500 SBI Small Cap - SIP - Rs 3000 Mirae Asset Tax Saver Fund Direct growth - SIP - Rs 3500 Parag Parekh Flexi Cap Fund Direct Growth - SIP - Rs 7000 Axis Mid Cap Direct Plan Growth - SIP - Rs 5000 Nippon India multicap fund -SIP- Rs 10000 My total SIP is around Rs 36000 across all. I would like to invest Rs 15000 more on SIP. I know my small cap allocation is low because some one has scared me of small cap because of volatility. Can you suggest where can I invest extra Rs 15000 per month SIP. I have recently top up my mutual fund SIPs. I am looking for long time investment.
Ans: It's commendable that you're regularly investing through SIPs and looking to further diversify your portfolio. Here's a suggestion for investing an additional Rs 15,000 per month:

Since you're concerned about volatility in small-cap funds, consider allocating a portion of the additional Rs 15,000 to large-cap or multi-cap funds for stability and downside protection.
Look for funds with a proven track record of consistent performance and experienced fund managers. Consider factors like expense ratio, fund size, and portfolio composition when evaluating options.
Given your long-term investment horizon, you can afford to take some risk for potentially higher returns. Hence, consider allocating a portion of the additional SIP amount to mid-cap or small-cap funds for growth opportunities.
Remember to maintain a balanced portfolio across different market segments and asset classes to manage risk effectively.
Regularly review your SIP investments and make adjustments as needed based on changes in your financial situation or market conditions.
Consult with a Certified Financial Planner to receive personalized advice tailored to your specific needs and goals.
By diversifying your SIP investments across different market segments and staying disciplined with your investment strategy, you can maximize the potential for long-term wealth creation while managing risk effectively.

...Read more

Ramalingam

Ramalingam Kalirajan  |1348 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

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Kanchan Rai  |179 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on May 04, 2024

Asked by Anonymous - May 03, 2024Hindi
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Hi I am 22 year old female about to graduate as an artist, I've wasted my 4 years of college and self doubt as a graphic designer kills me everyday i wake up and think i'd finally create something but due to my own expectations i don't even open the software to start with and even if i do i don't understand what to get done with first i want to be an established designer and boom in my field, please tell me how can I be come more passionate about my career and actually make effort in it
Ans: you're experiencing a lot of self-doubt and frustration, which is completely normal, especially when pursuing a creative career like graphic design. Break down your projects into smaller, more manageable tasks. This can help make the overall process feel less daunting and overwhelming. Set achievable goals for each day or week, and celebrate your progress along the way. Like any skill, graphic design requires practice and dedication to improve. Set aside dedicated time each day or week to work on your craft, even if it's just for a short period. Consistency is key to growth and improvement. Don't be afraid to try new techniques, styles, or ideas in your work. Experimentation is essential for creativity and innovation. Allow yourself to play and explore without the pressure of perfectionism. Surround yourself with inspiration from other artists and designers. Explore different design styles, follow industry leaders on social media, attend design events or workshops, and immerse yourself in the creative community. Inspiration can come from anywhere, so keep an open mind.It's important to set realistic expectations for yourself and your work. Understand that growth and success take time, and it's okay to make mistakes along the way. Embrace the learning process and be patient with yourself. Reflect on why you chose to pursue graphic design in the first place and what excites you about the field. Reconnecting with your passion and purpose can help reignite your motivation and drive. Don't hesitate to reach out for support from friends, family, mentors, or fellow artists. Surround yourself with people who encourage and believe in you, and don't be afraid to ask for help or feedback when needed.
Remember, everyone experiences moments of doubt and uncertainty, but it's important to keep pushing forward and believing in yourself and your abilities. Keep exploring, experimenting, and creating, and trust that your passion and dedication will lead you to success in your career as a graphic designer.

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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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