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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Oct 19, 2022

Mutual Fund Expert... more
Dayal Question by Dayal on Oct 19, 2022Hindi
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Money

I am a regular reader of your advice in rediff which are very useful. I am 44 years and have a lump sum of 50 lakh to invest. I want to invest for long term of 10 years and more.

I chose following funds:

Uti nifty index fund - 15 lakh
Motilaloswal Nasdaq 100 ETF - 10 lakh
Sbi nifty index fund - 10 lakh
Gold ETF - 15 lakh

Want to invest 50 lakh in next 4 - 5 months time when ever a dip occurs in the market in above funds. Request your kind suggestion in this regard.

Ans: It’s a good strategy, please proceed.

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  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - Apr 27, 2024Hindi
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Money
I have shortlisted these funds from my research and planning to invest as lumpsum in 6 to 8 months for a long term i.e. 8-10 year horizon. I am 54 years old. Kindly give your inputs Hdfc Focused 30 fund 20% Parag Parikh Flexicap fund 15% Quant Large & Midcap fund 15% ICICI Pru Nifty 200 Mom 30 index fund15% Motilal Oswal Midcap 150 index fund 15% Nippon India Smallcap 250 index fund 5% Motilal Oswal Microcap 250 index fund 5% Mirae Asset NYSE FANG+ ETF FoF 5%
Ans: Evaluation of Lumpsum Investment Portfolio

Strategic Portfolio Assessment

Your proposed investment portfolio reflects a diversified approach encompassing various mutual funds and exchange-traded funds (ETFs), tailored for a long-term horizon. Let's analyze each component and provide insights to optimize your investment strategy.

Assessing Fund Selection for Long-term Growth

The selection of funds demonstrates a blend of actively managed funds and index funds/ETFs, aiming to capture growth opportunities across different market segments. This diversified approach aligns well with your long-term investment horizon.

Benefits of Actively Managed Funds

Actively managed funds, such as HDFC Focused 30 Fund and Parag Parikh Flexicap Fund, offer the potential for higher returns through active stock selection and portfolio management. These funds leverage fund manager expertise to capitalize on market opportunities.

Disadvantages of Index Funds and ETFs

While index funds and ETFs provide cost-effective exposure to broad market indices, they may underperform actively managed funds during certain market conditions. Additionally, index funds lack flexibility in portfolio composition and may not fully capture market inefficiencies.

Optimizing Fund Allocation

Consider rebalancing your portfolio to ensure optimal allocation across different market segments. While large-cap, mid-cap, and flexi-cap funds offer diversification across market capitalizations, index funds and ETFs provide exposure to specific market indices.

Risk Management Considerations

Given your age and investment horizon, prioritize funds with a track record of consistent performance and risk-adjusted returns. Evaluate the risk-reward profile of each fund and ensure alignment with your risk tolerance and financial goals.

Monitoring and Review

Regularly monitor the performance of your portfolio and review fund selection periodically. Assess any changes in market conditions, fund performance, and your financial objectives to make informed decisions regarding portfolio adjustments.

Conclusion

Your proposed investment portfolio demonstrates a well-thought-out approach to long-term wealth accumulation. By blending actively managed funds with index funds/ETFs, you can leverage the strengths of both approaches and optimize portfolio returns while managing risk effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 24, 2024

Asked by Anonymous - Oct 11, 2024Hindi
Money
Hello sir , I am 40 years old , I have below investment. No EMI No Loan. FD - 60 lacs. Mediclaim - 15 lacs ( 20K per year) NPS - 50K Per year ( Since last 5 years) PPF - 150K Per Year ( Since Last 5 years) I am investing in below mutual funds through SIP. ( 32K Total) - Since last 3 Years ICICI balanced Advantage 2K HDFC Balanced Advantage 3K Tata Midcap and Largecap 3K Nippon India Small Cap 2K Motilal Midcap 2K ICICI Prudential Commodities 5K Quant Small Cap 5K HDFC Top 100 5K Parag Parikh Flexi 5K Is it good funds for long terms ( Horizon of 8/10 years) ? My income is arround 1.80 lac monthly , no home loan and emi. Shall I increase my SIP and my concern is 60 lacs is in FD ..Please suggest. Plus I want to invest 3 lacs lumpsum. Where to invest ? For long term 5/10 years.
Ans: At 40, your financial position is solid. You have Rs. 60 lakh in fixed deposits (FDs), a Rs. 15 lakh mediclaim policy, and regular contributions to NPS and PPF. Your SIP investments of Rs. 32,000 monthly across various funds, combined with no loans or EMIs, give you a robust foundation.

Let’s evaluate each aspect of your investments in detail, with suggestions for enhancing your portfolio for long-term wealth creation.

Fixed Deposit Concerns
FD Returns: Fixed deposits offer safety but low returns. The returns barely beat inflation, leading to a gradual erosion of purchasing power.

Action: You should not have Rs. 60 lakh tied up in FDs if you aim for long-term growth. Consider moving part of this into more growth-oriented avenues like mutual funds.

Mutual Fund Portfolio Review
You are investing Rs. 32,000 monthly in SIPs across various mutual funds. Let's evaluate if these funds are aligned with your 8-10 year goal.

Balanced Advantage Funds
ICICI Balanced Advantage (Rs. 2,000)
HDFC Balanced Advantage (Rs. 3,000)
Balanced advantage funds provide a blend of equity and debt. These funds adjust allocation based on market conditions. Over a long-term horizon of 8-10 years, they offer moderate growth with reduced risk compared to pure equity funds. Since you are investing for a medium to long-term horizon, continuing these SIPs is reasonable.

Midcap and Small Cap Funds
Tata Midcap and Largecap (Rs. 3,000)
Motilal Oswal Midcap (Rs. 2,000)
Quant Small Cap (Rs. 5,000)
Nippon India Small Cap (Rs. 2,000)
These funds can deliver higher growth but are volatile. For an 8-10 year horizon, midcap and small cap funds have great potential. Your investment mix here is well-diversified. Keep in mind that small-cap funds carry high risk in the short term, but since you are focused on the long-term, you can ride out the volatility for higher returns.

Large Cap Funds
HDFC Top 100 (Rs. 5,000)
Large-cap funds are stable and provide moderate growth. HDFC Top 100, being in this category, adds stability to your portfolio. It ensures that your portfolio is not overly exposed to market fluctuations. You should continue this SIP for balanced growth.

Sectoral and Commodities Funds
ICICI Prudential Commodities (Rs. 5,000)
Commodity funds are highly cyclical. While they can offer high returns during certain periods, they are also risky and volatile. Over the long term, they might not deliver as consistently as diversified equity funds. You should consider reducing your allocation here and channeling this money into more diversified equity funds, which provide a balanced risk-return profile.

Flexi-Cap Funds
Parag Parikh Flexi Cap (Rs. 5,000)
Flexi-cap funds are highly flexible, as they invest across large, mid, and small-cap stocks. Parag Parikh Flexi Cap is known for its consistent performance and global diversification. It's a good choice for a long-term horizon.

Recommendations for Portfolio Improvement
Reduce FD Exposure: Move a portion of your Rs. 60 lakh in FDs into a diversified equity mutual fund. Aim to keep only a small portion in FDs for emergencies.

Maintain Balanced Advantage Funds: Continue with your balanced advantage funds. They provide a safety cushion during volatile times.

Review Sectoral/Commodities Funds: Consider reducing your investment in commodities. Instead, focus on flexi-cap or mid-cap funds for balanced risk and return.

Increase SIPs for Long-Term Growth
Given your healthy monthly income of Rs. 1.80 lakh and no EMIs, you can consider increasing your SIPs to Rs. 40,000 or Rs. 50,000 monthly. This will help you accelerate wealth creation over your 8-10 year horizon.

Focus on Flexi-Cap Funds: Increase your investment in flexi-cap and midcap funds, as they offer higher growth potential.

Limit Sector-Specific Funds: Avoid putting more into sector-specific funds like commodities as they can underperform over the long term.

Balanced SIP Distribution: Aim for a portfolio with a good mix of large, mid, and small-cap funds for a balanced risk-return ratio.

Lump-Sum Investment Strategy
You have Rs. 3 lakh available for lump-sum investment. Given your long-term horizon of 5-10 years, consider investing in an equity mutual fund or a balanced advantage fund. Here are a few options to help grow your corpus:

Equity Funds: Opt for a flexi-cap or large and midcap fund. These funds are well-diversified and can offer superior growth over time.

Balanced Advantage Funds: If you prefer a bit of safety while still aiming for growth, you can invest this lump sum in a balanced advantage fund. These funds automatically adjust between equity and debt.

Systematic Transfer Plan (STP): To avoid market timing risk, consider investing this Rs. 3 lakh in a liquid fund and using an STP to gradually move the money into equity funds over the next 6-12 months.

NPS and PPF Contributions
You have been contributing Rs. 1.50 lakh annually to PPF and Rs. 50,000 to NPS. Both of these instruments are good for long-term wealth creation, particularly for retirement planning.

Continue NPS: NPS offers tax benefits and long-term growth. It’s advisable to continue contributing Rs. 50,000 annually. You can also increase the contribution if required.

PPF for Safety: PPF is a safe investment offering tax benefits and stable returns. Continue your Rs. 1.50 lakh annual contribution to PPF. It serves as a low-risk component of your portfolio.

Final Thoughts on Direct Mutual Funds
You mentioned investing through direct funds. While direct funds seem appealing due to lower expense ratios, they lack the benefit of personalized guidance. A Certified Financial Planner (CFP), along with a Mutual Fund Distributor (MFD), can help you manage and rebalance your portfolio efficiently.

Disadvantages of Direct Funds: Without professional guidance, investors may miss critical rebalancing or sectoral changes. A regular plan with an MFD provides you with expert advice, ensuring that your investments align with your long-term goals.

Benefit of Regular Plans: The small additional cost in regular plans ensures that your portfolio is regularly monitored by professionals, making sure you get the best returns.

Final Insights
You are on a strong financial footing with no loans or EMIs, regular SIPs, and a decent FD reserve. However, your FD holdings are too high, and this could slow your wealth creation. Rebalance your portfolio to include more growth-oriented investments.

By increasing your SIPs and allocating your lump-sum investment wisely, you can achieve higher returns over the next 8-10 years. Keep a balance between equity and debt for safety, and consider professional guidance to navigate market changes.

Stay focused on your long-term goals and review your portfolio every 6-12 months to ensure it remains aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 15, 2024Hindi
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Relationship
I am 50 years old and got married 15 years ago. I am a very spontaneous sort of a guy and enjoy life, partying etc. I was also very active socially.My wife being the complete opposite put a stop to all that once we got married. She also does not display any affection and has no interest in physical intimacy. She is just concerned with her housework.We also have lot of differences in mental attitude & intellectual abilities. At no stage will we ever seperate, however, I am unhappy with her nature. She has lot of friends, however is always at daggers drawn with in her in laws. We had to stay separately for 6 months, and I tried looking for love else where, however after a couple of months, I realised, that I missed her. I am in a quandary. Despite requesting her to work on our relationship, I get no response. Please advise on how to proceed.
Ans: Dear Anonymous,
I understand you are in a tough spot. But it's nice to see that after all those years of differences, you still have genuine feelings for her. I strongly suggest considering marriage counseling. From your description of your marriage, it seems to be there have been issues from the very beginning of it. It's been too long and now those issues must've become deep-rooted. Seeing a professional can be a game-changer. They can guide you out of this slump more methodically and help you navigate the emotions you are feeling right now. It can also help you understand the reasons for your wife's disinterest and handle it better.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 02, 2024Hindi
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Relationship
Hii, I have an love marriage after 9 years of dating and 6 years, 2 children post marriage, my little one is 11 months old now. My husband has an affair upto chatting to someone in his company, his junior but in different department, when my Lil one was 1 month old, we had in a rough patch then due to child birth and family drama. When I saw it and confronted him, he said he is sorry and won't do it again, we had multiple fights for 3-4 months after then due to same reason, but he mostly listen and consol. It's been a lot of mental torture for me. I love my husband a lot and he is a good person, but sometimes sill I see her msg in his phone asking for small helps or casual msg. She is also married. I am not sure my husband deletes msg or what, I am not able to get over this. Before it, this is was preety much a good relationship. I am highly educated and independent women. I don't want anything form my husband apart from love. What should I do, whenever I tell him I want to just leave and let him have his life, he won't let me somehow. We are having a good physical relationship 2-4 times a week( just to tell where we are). Please help me...I can't overcome that he is making fool of me...
Ans: Dear Anonymous,
I am sorry to hear you are in such a tough spot. I would suggest considering marriage counseling. A professional who can help you both tackle these issues would be helpful in this situation. I understand that it was his mistake and he needs to put the effort to make you trust him again, but since you are still together, you will also have to put in the effort to let it. I know it is difficult and that's where marriage counselor comes in. They can help you navigate these feelings. Moreover, if he is indeed hiding something, therapy can help that come out in the open.

Hope this helps.

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 10, 2024Hindi
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Relationship
Hi, Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. Partner(F28)continuing friendship with a person[M] who had crush on her before marriage considered emotional infidelity? Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. My wife is having friendship (strictly platonic) with a guy from her 10tlh grade (same class). Before our marriage (she may be doing her college, our relationship just started may be 2 weeks) this guy told her he has genuine interest in her and he want to take the relationship further if she wants, she said she is not interested in a relationship and she got committed, she always saw him as a friend, no other feelings for him and we can be friends if you don't bring any romantic interest again. He never took this talk again ever after and happy to be a friend. They are talking as friends. She got married to me. He also got married. They still do chats once in a month. She introduced me to him and visited his home when we visited his city. He also came to our home once (me and my family was there). She used to update me with chat she had with him and the content they are chatting. I am ok with that When we were talking about our school life and college life 2 years before. She said this guy had crush on her during her college days. I asked her, why did not she tell me this info till now. She said it is not purposely, she does not feel the need to do as the person is not in-appropriate with her and continuing as good friend as promised after she rejected his proposal. I don’t want to create any unnecessary issues as I don’t have any felling or so with him. That time I checked their chats completely, it’s about update about their common friends, their recent travel, their job, meditation courses and the books they read recently. I haven’t seen any flirting or romantic message from either of them. So I am perfectly fine with it and had no problems. I recently came to know about the concept of emotional cheating which is very new to me. Before that cheating to me is only flirting, sexeting and physical sex. I have asked for advice in redddit.com in infedility sub forum about emotional cheating/ emotion affair. There persons are advising like even having friendship with someone who had crush on you is emotional cheating as it is indirectly leading them on you. So with an omission of lie he had crush on her and indirectly leading him on you wife was emotionally cheating on you. This is very much equal to cheating. I do have lots of friends in other gender, but no one had crush on me. Does this count as emotional cheating/affair as she did not mention he had crush on her before marriage? I am little depressed and not able to spend quality time with my wife who is in postpartum depression and take care of our daughter properly as before. Do you guys advise me how to navigate this situation?
Ans: Dear Anonymous,
Are you really going to ruin your happy relationship based on some new term you have learned recently? Emotional cheating and many more terms of the kind will come and go, what truly matters is the truth. She is merely friends with this guy and for your peace of mind, you have even checked their conversations- what part of it looks like cheating to you? If tomorrow, some random person projecting their own insecurities claims that a man speaking to a woman is some "new form" of cheating, would you start believing that? My point is that these are just random opinions of some people- it isn't the ultimate truth. The entire context matters. This man had a crush on your wife, she rejected it, and now they are just friends. I find absolutely no misconduct or infidelity in this. The fact that none of your friends had a crush on you does not factor in at all. Moreover, your wife is in postpartum depression- that should be your biggest concern but here you are, giving more importance to the random 2 AM thoughts of some people you don't even know. Please rethink if you are being fair to your wife- the mother of your child.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Oct 26, 2024Hindi
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Relationship
I (30M) am looking for Arranged Marriage Prospects. My Family has found a Prospect (27F) who seems like a Good Match, she's Well Educated, Earning Well & from the same Community. I haven't yet met her in Person, but connected with her on Social Media Platforms & interacting regularly. Recently, I scrolled through her Instagram Profile (It's a Public Profile). She seems to be a very Sociable Person, she has shared many Photos of herself, Partying/Travelling along with her Friends. My Problem is that she seems to like Wearing Clothes which are Revealing. She has shared many Photos/Videos, in which she's skimpily dressed (including some Bikini Photos at Beach/Swimming Pool). She also has a Pierced Navel Ring & Tattoos on some Private Parts like Chest, Hips, Thighs & Lower Back, which she flaunts proudly on Social Media. Though, I am not Judging her Character, based on her Choice of Clothing, but seeing all these made me a little Uncomfortable, as I am a very Modest & Simple Person myself. I have not discussed this issue with my Parents, as they have a very good opinion about her (which I don't want to Ruin). But I've discussed with some of my closest Friends (of both Genders) & some of them have Chided me for being so Judgemental. They suggested me to meet her atleast once in person, to understand what's her Character/Personality like. Shall I give it a try or Reject her Politely at this stage itself, without wasting any more Time (either her or mine)? Or am I being too Superficial to Judge a Woman, just based on her Social Media Profile, without even meeting her once, personally (This is what some of my closest Female Friends opined)? Please suggest me how to proceed with this Prospect in Arranged Marriage.
Ans: Dear Anonymous,
I know it might come off as you being judgmental of her choice of dressing, but you have a right to form an opinion in your mind, especially since in your case, you might be marrying the person. As long as you are not making up your mind about her based on her dressing, forcing her to dress the way she wants, or thrusting your opinion on her, it's alright. It's human nature to be a bit jerked by the choices others make that we won't make ourselves. Having said that, I believe meeting her once in person can be good for you; you might have a new perspective- both about her and on life. But no one can force you to do either. My suggestion is that do what you think is right- if you are sure you will reject this alliance based on her choice of clothes, even if she is the nicest person on the face of the earth, meeting up might be a waste of time. But if you think you are open to changing your mind, go for it.

I would also like for you to remember one important point if things work out between the two of you- do not try to push your opinions on dressing and change the way she is after getting married. That would not be fair. In case, you start hoping that she will change and fit YOUR mold of the perfect woman, I would strongly suggest keeping that thought in check.

Best Wishes.

...Read more

Radheshyam

Radheshyam Zanwar  |1026 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 05, 2024Hindi
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Career
I'm 18 years old and currently preparing for neet as a dropper student. I'm from bihar but I live in haryana since my childhood. I have a boyfriend, he is doing btech and it has been 1.5 years since we are together we love each other he supports me in everything but the problem here is I lied him about my birthplace and told him that I belong to UP as UP is a bit better place than bihar. Idk i just feel ashamed to tell anyone that I'm from bihar so I just tell everyone that I'm from UP. Now I'm feeling very guilty in my own that I lied to him about such a basic and important thing and yesterday he Also mentioned that his mother never want a bihari girl, and he is a punjabi. I just don't know what should I do how will he react after knowing the truth and also I'm afraid that he will broke up with me.. I'm also having my neet exam in 6 months. I planned that i will tell him after my exam but I'm just feeling too guilty that I'm hiding this thing from him
Ans: Hello.
Keep mum for the next 6-7 months. Keep a safe distance from your boyfriend. Focus only on NEET preparation. Try to excel in NEET. Wait till the results are out. If you score well and get admitted to Govt Medical College, then open up in front of your boyfriend. He and his family members will accept you because you are becoming a doctor! But after taking the NEET examination, if you feel that you can't score as expected, then tell the truth to your boyfriend. If he loves you from the bottom of his heart, he will forgive you. But if not. then you assume that god has saved you from him!
Last but not least:- Dedicate your 24 hours only for NEET preparation. This time will never come in your life again. You can be a KING in just a few days with solid preparation and will get lifelong respect in society. The bright future is in your hands and not in the hands of your boyfriend.
Best of luck with your upcoming NEET Examination.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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