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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Feb 16, 2022

Mutual Fund Expert... more
Rahul Question by Rahul on Feb 16, 2022Hindi
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I am a regular reader of your section. Can you please review my portfolio? All are direct growth funds. I am 38 years old and planning for long term investment for 10+ years to create wealth for my children's education and retirement.

I have divided my portfolio into large cap, mid/flexi cap and small cap based on my risk appetite. I am not investing in DEBT MFs as I prefer PF, PPF and FDs for Debit investments.

1. MIRAE ASSET LARGE CAP - 5000

2. HDFC INDEX SENSEX FUND - 3000

3. UTI NIFTY NEXT 50 - 3000

4. MIRAE ASSET EMERGING BLUE-CHIP - 4500

5. AXIS MID CAP - 3000

6. PARAG PARIKH FLEXI CAP - 3000

7. UTI FLEXI CAP - 3000

8. AXIS SMALL CAP - 3000

9. NIPPON INDIA SMALL CAP - 3000

10. DSP BLACKROCK TAX SAVER - 2000 (Stopped SIP for this and diverted amount to Mirae Asset Large Cap)

I am also planning to invest additional 10k and considering below options to give exposure to different markets/ sectors. Can you please provide your thoughts on this?

1. Motilal Oswal Nasdaq 100 Fund of Fund - 4000 

2. Mirae Asset NYSE FANG+ ETF FoF - 4000

3. ICICI PRUDENTIAL TECHNOLOGY FUND - 2000. 

Or, shall I consolidate investment on any of the above good existing funds?

Ans: You may also consider the below:

  • Samco Flexi Cap fund Growth
  • Axis ESG Equity fund – Growth
  • DSP Quant 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  |8869 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 12, 2024Hindi
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Hello Sir, I am 28 years old and currently investing in the following funds for the last 2 years.1. Uti Nifty 50 index (Rs.5000) 2. SBI Small Cap (Rs.4000) 3.Mirae Asset Large & Midcap(Rs2000) and 4.Motilal Oswal Nasdaq 100 fof(Rs.1000). I also intend to step up my SIPs in these funds in the upcoming years.My goal is wealth creation and I am looking for 15-20 years of investment. Kindly review the funds and suggest if I need to make any adjustments to them or add any new funds in my portfolio. Thank you.
Ans: Considering your investment horizon of 15-20 years and your goal of wealth creation, your current portfolio appears to be well-diversified across different market segments. Here's a review of your funds and some suggestions:
1. UTI Nifty 50 Index: Investing in a broad-market index fund like UTI Nifty 50 Index provides exposure to India's top 50 companies by market capitalization. It's a good choice for long-term wealth creation as it offers diversification across various sectors of the economy.
2. SBI Small Cap: Small-cap funds like SBI Small Cap have the potential for higher growth over the long term but come with higher volatility. Given your investment horizon, this fund can add an element of growth to your portfolio. However, be prepared for fluctuations in returns.
3. Mirae Asset Large & Midcap: This fund follows a blend of large-cap and mid-cap stocks, providing a balanced approach to growth and stability. It's suitable for investors seeking exposure to quality companies across market capitalizations.
4. Motilal Oswal Nasdaq 100 FOF: Investing in an international fund like Motilal Oswal Nasdaq 100 FOF adds global diversification to your portfolio. The Nasdaq 100 index comprises leading US technology and internet companies, offering growth opportunities beyond the Indian market.
Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.
Given your age and investment horizon, you have the flexibility to take on more risk for potentially higher returns. Here are a few suggestions:
1. Consider Adding a Mid-Cap Fund: Since you already have exposure to large-cap and small-cap segments, adding a mid-cap fund can further diversify your portfolio and capture growth opportunities in this segment.
2. Review Portfolio Allocation: Ensure your portfolio is well-balanced across different market segments to manage risk effectively. You may consider increasing or decreasing allocations to certain funds based on your risk tolerance and return expectations.
3. Regularly Review and Rebalance: Periodically review your portfolio's performance and make necessary adjustments to ensure it remains aligned with your long-term goals. Rebalancing can help maintain the desired asset allocation and manage risk.
Overall, your portfolio seems well-structured for long-term wealth creation. However, it's essential to monitor market developments and stay updated on fund performance to make informed decisions.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8869 Answers  |Ask -

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

Money
Hello Sir/Ma'am, I hope you are doing well. Could you please provide your guidance regarding my investment portfolio? I am 46 years old and currently have a mutual fund portfolio valued at 2 crores, with an approximate XIRR of 23%. My objective is to invest an additional 1 crore in mutual funds. I plan to hold these investment for the next 6-7 years before making any withdrawals using the Systematic Withdrawal Plan (SWP). My goal is to achieve a total portfolio value of 6 crores in the next 5-6 years. At present, I am invested in 20 mutual funds, which I realize is quite a lot. Could you please review my current funds and suggest where I should invest the additional 1 crore? I would like to eliminate any unnecessary overlap and focus on investments that will help me achieve my goals. I am considering switching from Motilal Oswal Defence Index to Motilal Oswal Mid Cap and from Quant Infrastructure Fund to Quant Mid Cap. These are just preliminary ideas. Could you help me streamline my portfolio and recommend where to invest the additional 1 crore considering aggressive risk taker ? ##############LARGE Cap 1. ICICI Prudential Bluechip Fund - 18L ##############Flexi Cap 2. HDFC Flexi Cap Fund - 29L 3. Parag Parikh Flexi Cap - 17L 4. Quant Flexi Cap - 10L ############# Multi Cap 5. Nippon India MULTICAP FUND - 25L ############# Mid CAP 6. HDFC Mid Cap Opportunities - 14L 7. Motilal Oswal Mid cap - 5.5L #############Small Cap 8. KOTAK SMALL CAP FUND - 11L 9. ICICI Prudential Smallcap Fund - 5L 10. Tata Small Cap Growth Direct Plan - 4L 11. HDFC Small Cap Fund Direct - 2.6L 12. Nippon India Small Cap - 3.5L ############INDEX 13. HDFC Index Nifty 50 Growth Direct Plan - 10L 14. ICICI Prudential Nifty Midcap 150 Index Growth Direct Plan - 7L 15. HDFC NIFTY Smallcap 250 Index Fund Direct - 5L 16. Motilal Oswal Nifty Microcap 250 Index Growth Direct Plan - 2.5L 17. UTI Nifty200 Momentum 30 Index Growth Direct Plan - 11L 18. UTI Nifty Next 50 Index Growth Direct Plan - 11L 19. Motilal Oswal Nifty India Defence Index Growth Direct Plan - 2L ################# Thematic 20. Quant Infrastructure fund - 9.5L
Ans: Current Portfolio Overview
Your mutual fund portfolio is valued at Rs. 2 crores. You have an impressive XIRR of 23%. You plan to invest an additional Rs. 1 crore. You aim to achieve a portfolio value of Rs. 6 crores in 5-6 years. Your current investments are spread across 20 mutual funds.

This diversification is quite extensive. Streamlining is needed to avoid overlap and enhance performance.

Evaluating Fund Categories
Large Cap
ICICI Prudential Bluechip Fund - Rs. 18L
Bluechip funds provide stability. They should form the core of your portfolio.
Flexi Cap
HDFC Flexi Cap Fund - Rs. 29L
Parag Parikh Flexi Cap - Rs. 17L
Quant Flexi Cap - Rs. 10L
Flexi Cap funds offer balanced exposure. They adapt to market conditions.
Multi Cap
Nippon India Multi Cap Fund - Rs. 25L
Multi Cap funds provide a mix of large, mid, and small caps. They offer diversification within a single fund.
Mid Cap
HDFC Mid Cap Opportunities - Rs. 14L
Motilal Oswal Mid Cap - Rs. 5.5L
Mid Cap funds have higher growth potential. However, they are riskier.
Small Cap
KOTAK Small Cap Fund - Rs. 11L
ICICI Prudential Smallcap Fund - Rs. 5L
Tata Small Cap Growth Direct Plan - Rs. 4L
HDFC Small Cap Fund Direct - Rs. 2.6L
Nippon India Small Cap - Rs. 3.5L
Small Cap funds can deliver high returns. They are suitable for aggressive investors.
Index Funds
HDFC Index Nifty 50 Growth Direct Plan - Rs. 10L

ICICI Prudential Nifty Midcap 150 Index Growth Direct Plan - Rs. 7L

HDFC NIFTY Smallcap 250 Index Fund Direct - Rs. 5L

Motilal Oswal Nifty Microcap 250 Index Growth Direct Plan - Rs. 2.5L

UTI Nifty200 Momentum 30 Index Growth Direct Plan - Rs. 11L

UTI Nifty Next 50 Index Growth Direct Plan - Rs. 11L

Motilal Oswal Nifty India Defence Index Growth Direct Plan - Rs. 2L

Index funds have lower fees but lack active management benefits. Active funds can outperform by selecting high-potential stocks.
Thematic Funds
Quant Infrastructure Fund - Rs. 9.5L
Thematic funds focus on specific sectors. They offer higher risk and reward.
Portfolio Streamlining Suggestions
Reduce Overlap
Consolidate Flexi Cap funds. Keep one or two best-performing funds.
Reduce Mid Cap and Small Cap funds. Focus on top performers.
Minimize Index funds. Their passive nature may limit growth.
Recommended Fund Adjustments
Switch from Index funds to actively managed funds. Active funds can outperform the market. They offer better stock selection and management.
Consider reducing your Thematic fund exposure. They carry sector-specific risks.
New Investments
Allocate new Rs. 1 crore across top-performing Large Cap, Flexi Cap, and Small Cap funds.
Focus on funds with strong historical performance and potential.
Portfolio Allocation Strategy
Large Cap: 40% of your portfolio. They provide stability.
Flexi Cap: 30% of your portfolio. They adapt to market changes.
Small Cap: 20% of your portfolio. They offer high growth potential.
Thematic Funds: 10% of your portfolio. They add diversity and high risk-reward.
Final Insights
Streamlining your portfolio will reduce overlap and enhance returns. Focus on a mix of Large Cap, Flexi Cap, and Small Cap funds. Avoid over-diversification and index funds. Invest additional Rs. 1 crore in high-performing funds. This strategy will help achieve your goal of Rs. 6 crores.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8869 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 27, 2025

Asked by Anonymous - Feb 23, 2025Hindi
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I am reaching out to seek your guidance on my current investment portfolio. Below are the details: **Personal Details:** - Age: 27 years _ From :- Pune - Investment Horizon: Minimum 7 years - Risk Appetite: Moderate **Current Holdings:** 1. UTI Nifty 50 Mutual Fund: ₹2.5 Lakhs 2. Parag Parikh Flexi Cap Fund: ₹2.5 Lakhs 3. Fixed Deposit: ₹15 Lakhs (for marriage in the next 1 year) **Current Mutual Fund Portfolio (Monthly SIPs of ₹1 Lakh):** 1. Large Cap (UTI Nifty 50 Index): ₹10,000 2. Large & Mid Cap (UTI Nifty Next 50 Index): ₹10,000 3. Flexi Cap (Parag Parikh Flexi Cap): ₹20,000 4. Mid Cap (Kotak Emerging Equity): ₹15,000 5. Small Cap (Tata Small Cap): ₹10,000 6. Motilal Oswal Nasdaq 100 ETF: ₹5,000 7. ICICI Gold ETF: ₹8,000 8. Parag Parikh Conservative Hybrid Fund: ₹10,000 9. PPF: ₹5,000 10. NPS: ₹7,000 **Financial Goal:** To accumulate a corpus of ₹1 crore in the next 6-7 years. I would appreciate it if you could review my portfolio and provide any advice or suggestions to optimize it for achieving my goal. Additionally, please let me know if any adjustments are needed in terms of asset allocation, fund selection, or risk management.
Ans: I appreciate your effort in building a structured investment portfolio. You have a good mix of asset classes. However, some refinements can improve returns and risk management.

Key Observations
You have a strong SIP commitment of Rs 1 lakh per month.

Your investment horizon is 7 years, which is medium-term.

Your risk appetite is moderate, but some holdings may not align.

Index funds and ETFs may limit your portfolio’s growth potential.

Issues in Your Current Portfolio
1. Over-Reliance on Index Funds
Index funds provide average market returns.

Actively managed funds can outperform in a 7-year horizon.

Index funds limit downside protection in volatile markets.

2. High Exposure to International Markets
Investing in global ETFs increases currency risk.

Your portfolio already has enough diversification within India.

Removing international exposure can simplify taxation.

3. Overlap in Large-Cap Allocation
Large-cap index funds and flexi-cap funds create redundancy.

A better option is an actively managed large-cap fund.

4. Conservative Hybrid Fund Allocation
Hybrid funds are good for capital preservation, but not for growth.

Your investment horizon is long enough for a pure equity approach.

Reducing this allocation can improve overall returns.

Recommended Portfolio Adjustments
1. Replace Index Funds with Actively Managed Funds
Actively managed funds have historically outperformed index funds.

A well-managed large-cap and large & mid-cap fund will be better.

2. Reduce International Exposure
Exit from the international ETF.

Keep investments in strong Indian equity funds.

3. Optimise Large-Cap and Flexi-Cap Allocation
Replace index-based large-cap funds with top-performing active funds.

Continue flexi-cap investment but monitor fund performance.

4. Increase Mid-Cap and Small-Cap Allocation
Mid-cap and small-cap funds offer higher growth potential.

Increase allocation based on risk comfort.

5. Exit Hybrid Funds for Higher Growth
Shift hybrid fund allocation to mid-cap or flexi-cap funds.

This will ensure better long-term returns.

Suggested New SIP Allocation
Large-Cap Fund: Rs 10,000 (actively managed)

Large & Mid-Cap Fund: Rs 10,000 (actively managed)

Flexi-Cap Fund: Rs 25,000

Mid-Cap Fund: Rs 20,000

Small-Cap Fund: Rs 15,000

Gold ETF: Rs 5,000 (optional for diversification)

PPF and NPS: Continue existing contributions

This new allocation ensures higher growth while managing risk.

Final Insights
Replace index funds with actively managed funds.

Reduce international exposure to avoid currency risks.

Shift hybrid allocation to growth-focused funds.

Increase mid-cap and small-cap exposure for better returns.

Continue PPF and NPS as stable long-term investments.

This approach will improve returns while keeping risk moderate.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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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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