Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on May 14, 2021

Mutual Fund Expert... more

Question by abhishek on May 14, 2021Hindi

Money

Q1. Have I invested in too many funds?

Ans: Yes, 4 to 6 schemes are sufficient

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.

MoneyReply

You may like to see similar questions and answers below

Sanjeev Govila |458 Answers |Ask -Follow

Financial Planner - Answered on May 10, 2023

Question by Puneet - May 10, 2023Hindi

Money

Sir, I have following mutual Funds and I believe I have made many mistakes.. Need your advice as all are completing 12 months now. Canera robeco infrasturcfure fund Growth Regular - 5000/SIP - total value 70000 (with small lumpsum) Current Value 72236 - I am not sure whether to keep or not? UTI Flexicap - 5000 SIP with total value 65000 Current value 64500 - I am not sure whether to keep or not? Mirae asset large cap growth regular - 5000 SIP - total value 113000 (With small lumpsums) Current Value 115000 - I am not sure whether to keep or not? Axis focused 25 growth regular - 5000 SIP - total value 75000 (with small lumpsums) - Current Value 74700 - I am not sure whether to keep or not? Axis Bluechip growth regular - 5000 SIP TOtal Value 155000 - Current Value 155100 - I am not sure whether to keep or not? Kotak small Cap growth regular No SIP - I put in lumpsums during dips - total value 2 lakhs current value 202946 - I plan to keep it and eventually bring it to direct mode and continue investing - what's your opinion? SBI Contra Fund growth regular - NO SIP - I put in lumpsums during dips total value 166000 and current value 179780 - I plan to continue and bring it eventually to direct mode and continue investing. What is your opinion? SBI Contra fund - direct growth No SIP - I put in lumpsums during dips - total value 125000 current value 133000 - I plan to keep it and continue investing during dips and will eventually bring the 166000 from the regular mode also to the direct mode. What is your opinion? SBI Flexi CAP regular growth No SIP - I put in lumpsums during dips ) - Total value 1 lakh - current value - 103500 - I am not sure whether to continue investing in this one or not? Invesco India regular growth - 5000 SIP - total value - 40000 - current value - 40900 - I am not sure whether to continue or not? DSP Mid Cap regular growth - 5000 SIP - total value 40000 - current value 40200 - I am not sure whether to continue or not? HDFC Multicap Regular Growth - 5000 SIP - total value 50000 (with small lumpsum) - Current vlaue - 50260 - I might just continue with this one. What is your opinion? Parag Parikh Flexi cap regular growth No SIP - I put in money during dips - total value 2.7 lakh - current value - 2.93 Lakhs. I plan to continue investing lumpsums during dips and will eventually bring it in direct mode. What is your opinion? SBI Large and mid cap direct growth - 5000 SIP - total value approx 70000 - current value approx 74000. I might just continue with this one. What is your opinion? Quant ELSS direct growth No SIP - I put in money during dips. Total value approx 3 lakhs. Current value (haven't checked). I plan to continue putting lupmsums during dips. What is your opinion? Nippon India Small Cap direct growth No SIP - I put in money during dips. Total value approx 2.8 lakhs. Current Value (Haven't checked). I plan to continue putting lump sums during dips). What is your opinion? Kotak Bluechip Direct growth - No SIP. I put in money during dips. total value 2.35 lakhs. Current value approx 2.5 lakhs. I plan to continue putting lumpsums during dips. What is your opinion? As, I can see that there are too many funds and lots of overlapping also. Many funds have been at their historically low and some have been at the lowest ladder in rankings with continue bad performance. Thus, I need to reduce the number of funds and stop the bad ones and also to reduce the overlapping. It is not a goal based investment but simply an investment with no time horizon but I do not see myself touching them for the next 10 years. In fact, I plan to just keep putting in more so my approach can be seen as aggressive one and I would not mind going bullish on small caps and mid caps as the time horizon is long. Please advice me on how to proceed. Thanks

Ans: Puneet
You have 17 MFs and it is not possible for me to analyse and give recommendations on each one of them in the time available to me.

But from a cursory glance, I can surely say that there are too many of them. Too many of MFs neither give you diversification nor provide you safety or better returns. They only make monitoring difficult.

Since you are comfortable with an aggressive portfolio and have a long time horizon of 10 years, my advice to you is:-
• Straightaway cut down your number of funds to half – say 8. Use one of the rating websites to know which one is good and which not. Such websites are not the best way to select funds but, in your case, would work fine.
• The cutting down should be category-wise. Try not to have more than one fund per category. Rarely should you have two per category.
• If you only wish to have equity funds, then your total number of funds could be even lesser. Go in for Large Cap / Index Fund, Flexicap Fund, Large & Mid Cap Fund, Mid Cap Fund, Small Cap Fund, and maybe an Aggressive Hybrid or an Asset Allocator Fund. Try and take more funds with a value oriented approach than growth approach.
• One selected, do the same for SIPs and bulk amounts.
• Lastly, monitor your funds once in six months and rebalance if required.

Ramalingam Kalirajan |8083 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 22, 2024

Question by Prabu - Apr 21, 2024Hindi

Money

[21/04, 10:11 pm] Prabu Ravichandran: Hi Experts, I am 40 years old. I am investing in mutual fund SIPs. My portfolio has following funds each 1000Rs SIP monthly. 1) Quant Infrastructure 2) Quant Mid cap 3) Quant Small cap 4) Quant Active 5) Quant Flexi cap 6) ICICI Pru Infrastructure 7) ICICI Pru Bluechip 8) ICICI Pru Bharat 22 FOF 9) Nippon India Large cap 10) Nippon India Growth 11) Nippon Small cap 12) Nippon India Multi cap 13) Nippon Power & Infra 14) Aditya Birla Sun Life PSU 15) SBI PSU 16) Invesco PSU 17) JM Large cap 18) JM Value fund 19) JM Flexi cap 20) Tata Small cap 21) HDFC Mid cap opportunities 22) Mahindra Manulife Mid cap 23) Mahindra Manulife Multi cap 24) Motilal Oswal Mid cap [21/04, 10:14 pm] Prabu Ravichandran: Am I good to continue on these funds? Do I need to add/remove any funds for a good portfolio. Please provide your thoughts.

Ans: Your portfolio appears to be heavily concentrated with multiple funds, possibly leading to overlap and excessive diversification. It's essential to streamline your investments to avoid redundancy and maintain a clear investment strategy. Consider consolidating similar funds or those with overlapping objectives. Assess the performance, risk, and alignment with your financial goals for each fund. Periodic review and adjustments are crucial to ensure your portfolio remains aligned with your objectives and risk tolerance. Consulting a financial advisor can help you optimize your portfolio and ensure a more focused investment approach.

Ramalingam Kalirajan |8083 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 25, 2024

Question by Pradeep - Dec 25, 2024Hindi

Money

Sir Namaste, I have been investing 20000 in almost Funds approx 18 funds, and in some funds 1 Lakhs total investments value is 25 Lakhs, few are performing well and few are under performing, I'm 44 years old,,, Large, Mid And Small Funds with ratio of 40% - 50%- 10%..

Ans: At age 44, having Rs. 25 lakhs invested in mutual funds is commendable. However, managing 18 funds may create unnecessary complexity. Below is a detailed evaluation of your portfolio and suggestions to optimise it for better performance and alignment with your goals.

Strengths of Your Portfolio
Significant Investment Corpus
You have built a sizeable corpus, which is a strong financial base.

Diversification Across Market Caps
Allocating 40% to large-cap, 50% to mid-cap, and 10% to small-cap is balanced.

Focus on Long-Term Investing
Staying invested for the long term helps in compounding wealth.

Areas for Improvement
1. Over-diversification

Holding 18 funds may result in overlapping stocks and reduced diversification benefits.
Tracking and managing so many funds can be challenging.
Recommendation

Consolidate your portfolio to 5-7 funds across large-cap, mid-cap, and small-cap categories.
2. Underperforming Funds

Some funds in your portfolio are not performing well.
Continuing with such funds may drag down overall returns.
Recommendation

Review the 3-year and 5-year performance of each fund against its benchmark.
Replace consistently underperforming funds with better-performing ones.
3. Small-Cap Allocation

Small-cap funds have higher growth potential but also higher volatility.
A 10% allocation may not significantly impact overall returns.
Recommendation

Increase small-cap exposure to 15%-20% if you can handle moderate risk.
4. Fund Overlap

Multiple funds in similar categories (e.g., large-cap or mid-cap) may hold the same stocks.
This limits the benefits of diversification.
Recommendation

Use fund analysis tools to identify overlapping holdings.
Retain funds with distinct investment strategies.
Optimised Portfolio Allocation
Here is a suggested allocation for better management:

Large-Cap Funds (40%-50%): Stable returns with low volatility.
Mid-Cap Funds (30%-40%): High growth potential with moderate risk.
Small-Cap Funds (15%-20%): Higher returns for long-term goals.
Steps to Optimise Your Portfolio
1. Consolidate Funds

Retain 2 large-cap, 2 mid-cap, and 1 small-cap fund.
Add a flexi-cap fund for dynamic allocation across market caps.
2. Increase SIP Contributions

If feasible, increase monthly SIP amounts to enhance long-term corpus.
Prioritise funds with consistent performance and low expense ratios.
3. Rebalance Annually

Review your portfolio once a year to align with market conditions.
Rebalance to maintain your desired asset allocation.
4. Focus on Actively Managed Funds

Actively managed funds can outperform the market in India.
Avoid index funds or ETFs as they limit flexibility and adaptability.
5. Monitor Performance Regularly

Track fund performance against benchmarks and peers.
Consult a Certified Financial Planner for detailed insights.
Tax Considerations
Equity mutual funds attract LTCG tax of 12.5% for gains above Rs. 1.25 lakh.
Short-term gains are taxed at 20%.
Recommendation

Avoid frequent redemptions to minimise tax liabilities.
Redeem funds strategically to maximise tax efficiency.
Final Insights
Your portfolio shows strong financial discipline and focus on long-term goals.

Consolidating your funds will simplify management and improve returns.

Focus on high-performing funds while maintaining diversification across market caps.

Rebalancing annually will help in staying aligned with your financial objectives.

Stay invested with discipline to achieve your financial milestones.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Latest Questions

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Question by suresh - Mar 06, 2025Hindi

Career

My score in JEE mains 1 is 95.6 percentile in OBC category. Can I get CSE and AI in NIT?

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Question by Bonthala - Feb 21, 2025Hindi

Career

Sir My son has gained 98.17 percentile in jee 1 session we are belongs to ews .In which nit or iiit he will get seat for cse

Ans: May be IIIT Bhubaneswar and other new IIIT

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Asked by Anonymous - Feb 21, 2025Hindi

Career

I got 88.3410 percentile in jee mains and i belong to sc category can I get nit suratkal with hs

Ans: Good chance

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Question by Adnan - Feb 21, 2025Hindi

Career

What is the chances of getting in top 5 nits in any branch with 89 percentile in jee mains st category

Ans: Good chance

Sushil Sukhwani |588 Answers |Ask -Follow

Study Abroad Expert - Answered on Mar 06, 2025

Question by Arvinder - Mar 06, 2025Hindi

Career

Sir can you guide about abroad institute for neuropsychology after mbbs.Or road map from MBBS to neuropsychology

Ans: Hello Arvinder,

Firstly, thank you for reaching out to us. To answer your question, if you're an MBBS graduate looking to pursue neuropsychology abroad, the typical roadmap would involve first gaining a solid foundation in psychology or neuroscience, often through a master's or post-graduate diploma. Many institutes offer specialized courses or programs in neuropsychology, such as those at universities in the UK, US, or Canada. You'd want to look for programs that bridge the gap between medicine and psychology, like MSc in Neuropsychology or Clinical Neuroscience. After completing your postgraduate degree, you might consider further research or clinical training opportunities, often leading to a PhD or professional certifications. You’ll be combining your medical background with psychological expertise to understand brain-behavior relationships, which is a fascinating field!

For more information you visit our website: edwiseinternational.com
You can follow us Instagram: @edwiseint

Radheshyam Zanwar |1340 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 06, 2025

Asked by Anonymous - Mar 06, 2025Hindi

Career

Sir I'm sanjay kannan my score is 81.32 so i can get any nit my category is sc

Ans: Hello Sanjay Kannan.
With your score and category, there are chances to get admission to mid-tier NITs to core branches. But if you are ready to take the risk, it is possible to get a CSE branch at the newly formed NIT-Mizoram or Meghalaya.

Follow me if you like the reply. Else ask again.
Thanks
Radheshyam

Mayank Chandel |2086 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Mar 06, 2025

Asked by Anonymous - Feb 23, 2025Hindi

Career

Hello sir, my name is Priya I got 77.81%ile (OBC NCL) in jee mains 2025. Can I get seat in any nit or iiit with any branch, home state Telangana. Also also sir any suggestions to increase my percentile in April attempt?

Ans: Hello Priya
as per last year's cutoff you are not eligible for JOSAA counselling. You can improve your score and get admissions in your dream college. Control negatives, don't give into the temptation of marking the option if you are not sure, options are designed that way, you commit a mistake and you will get a wrong answer there waiting to be marked.
30-35 questions correctly answered without any negative marking can get you your desired college.
All the best.

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Question by Selvi - Mar 06, 2025Hindi

Career

My daughter is studying B.Tech Smart Manufacturing. Which subject in GATE exam is best suitable for her to purse M.Tech AI & ML?

Ans: CSE, Electronics

Asked on - Mar 06, 2025 | Answered on Mar 06, 2025

Ans: Mention Not

Radheshyam Zanwar |1340 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 06, 2025

Asked by Anonymous - Mar 06, 2025Hindi

Career

I got 96.5 percentile SC cat, Male, 12thie. I'll try harder in 2nd attempt. But can I get NIT Rourkela EIE with this... I'm interested in electronics related branches and checked the syllabus and stuff and found it good.

Ans: Hello dear.
Under the SC category, your chances are bright to get a seat in NIT and that too electronics-related branches. Best of luck for your upcoming bright future.

Follow me, if you like the prompt reply. Else ask again.
Thanks
Radheshyam

Rajesh Kumar Singh |150 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Mar 06, 2025

Question by Nagasubbareddy - Mar 06, 2025Hindi

Career

Sir. jee main ews 99.61 percentile can i get cse trichy

Ans: Good chance.good luck

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

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

Sign up

email

uname

mobile no

Country Code

Mobile number

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

Already have an account?

LOGIN

x