Respected sir, Can a non-listed public limited company invest in SIP. Please also let me know can a company make one time investment in mutual funds

Ans:

Ans: I recommend continuing with the "Mirae Asset Emerging Bluechip Fund" & "Parag Parikh Flexicap Fund" as these funds have good track record of performance and has generated returns that are above the benchmark index over a long period of time.

However, I recommend you to discontinue your investments in the following funds:

1. Axis Long Term Equity Fund- This fund has shown inconsistency in returns over a period of time and shows inconsistency in returns and its performance in comparison to its peers.

2. Nippon India Pharma Fund and Tata Digital India Fund- These are sectoral funds, which means that they invest in companies belonging to a single sector, pharma and technology respectively. Sectoral funds are exposed to higher risk than diversified funds, as their performance depends on the performance of a single sector. Additionally, sectoral funds are unlikely to generate returns that are significantly higher than the benchmark index, as they are passively managed and track a sector index.

Ans: Since you're already investing via SIPs, continuing with this approach can offer discipline and rupee-cost averaging benefits. Consider diversifying across large, mid, and small-cap funds for balanced exposure. Additionally, you could explore direct equity investment if you're comfortable with the associated risks and have sufficient knowledge. Ensure thorough research or consult a financial advisor before proceeding.

Direct equity investment involves specific risks such as market volatility, company-specific risks, and lack of diversification. Unlike mutual funds, where risks are spread across multiple stocks, investing directly in equities exposes you to the performance of individual companies. Market fluctuations can lead to significant price swings, impacting your portfolio's value. Moreover, company-specific factors like management decisions, industry trends, and financial performance can affect stock prices. Lack of diversification amplifies the impact of adverse events on your investment.

Ans: Of course! I'd be happy to help. Feel free to ask any questions you have about SIPs or investments. What would you like to know?
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Investing in SIPs is a great choice for building wealth. SIPs allow you to invest a fixed amount regularly in mutual funds.

Evaluating Fund Options

Choosing the right funds is crucial. You should aim for a balanced portfolio with various fund types.

Benefits of Actively Managed Funds

Actively managed funds are handled by experts. These funds often perform better than index funds. The professional management helps in optimizing returns and reducing risks.

Disadvantages of Direct Funds

Direct funds require more knowledge and active management. They lack professional guidance. Investing through a Certified Financial Planner (CFP) ensures better decisions and better portfolio management.

Steps to Select Good Funds

Assess Your Goals: Understand your financial goals. This will help in choosing the right fund types.

Risk Appetite: Know your risk tolerance. Different funds have different risk levels.

Performance Track Record: Look at the fund's historical performance. Consistency over the years is key.

Fund Manager: Check the experience and track record of the fund manager. Experienced managers often deliver better results.

Expense Ratio: Lower expense ratios can lead to higher returns. But, ensure it doesn’t compromise on quality management.

Recommendations

Seek Professional Advice: Consult a CFP. They can guide you in selecting the best funds based on your goals and risk appetite.

Diversify: Invest in a mix of large-cap, mid-cap, and balanced funds. Diversification reduces risk and improves returns.

Final Insights

Investing in SIPs is a smart way to grow your wealth. Choose actively managed funds for better performance. Consult a Certified Financial Planner to ensure your investments align with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in