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Ramalingam

Ramalingam Kalirajan  |5056 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 25, 2023

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
rudolf Question by rudolf on Sep 14, 2023Hindi
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Hi this is Rudolf , i am 46 years old and want to build a portfolio of 2 crores First of all, thank you for taking the time to review questions from viewers. I would be really grateful if you could review my investment portfolio. I invest 64,000 rupees every month in a direct mutual fund, and my plan is to continue this for the next 10 years. Thank you! Previously, I used a broker for my investments, but now I have stopped using their services and kept those funds as they are . Currently, I am investing in the following mutual funds through the Coin app: ICICI Pru Bluechip - 12,000 rupees Mirae Asset Emerging Bluechip - 4,000 rupees Axis Mid-cap - 5,000 rupees HDFC Mid-cap Opp - 5,000 rupees Axis Small-cap - 6,500 rupees Quant Active - 6,500 rupees Parag Parikh Flexi-cap - 8,000 rupees UTI Nifty 50 - 6,000 rupees Navi Nasdaq - 6,000 rupees Tata Digital Industries - 5,000 rupees Please advice.

Ans: Please check the overlap ratio of each fund in your portfolio when you add. Lesser the overlap ratio is better. There is no meaning in buying the same underlying stocks through different funds. If you find it difficult to decide the overlap ration or allocation, you can consult with financial planner or a professional mutual fund distributor who will be able to suggest and review periodically.
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  |5056 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Hi.......I am 45 years old. I am making following investments in Mutual Funds:- I have house of my own, with no liability. I have a investment horizon of 15 years, with high risk taking capacity. I am looking for a retirement corpus of 3-4 crores. I am making following investments in Mutual Funds:- UTI Nifty 50 Index Fund Direct Growth 12000 Tata Small Cap Fund Direct - Growth 4000 SBI Contra Direct Plan Growth 5000 Nippon India Growth Fund Direct- Growth 6000 Quant Small Cap Fund 4000 Nippon India Small Cap Fund 5000 ICICI Prudential Bluechip Fund Direct-Growth 9000 Mahindra Manulife Multi Cap Fund - Direct Plan - Growth 5000 Parag Parikh Flexi Cap Fund 5000 SBI Large & Midcap Fund Direct Plan-Growth 5000 TOTAL 60000 Please analyse the portfolio and advice accordingly.
Ans: Your portfolio reflects a diversified mix of mutual funds across various categories, indicating a thoughtful approach to long-term wealth accumulation. Here's an analysis and some suggestions to consider:

Diversification:
Your portfolio includes funds from different market segments such as large-cap, mid-cap, small-cap, multi-cap, and index funds, providing diversification benefits and exposure to various sectors and themes.
Diversification helps spread risk and can potentially enhance overall returns over the long term.
Index Fund:
UTI Nifty 50 Index Fund offers exposure to the top 50 companies in the Indian equity market, providing stability and consistent returns over time.
Index funds are suitable for investors seeking low-cost, passive investment options that track market performance.
Small and Mid Cap Funds:
Tata Small Cap Fund and Nippon India Small Cap Fund invest in small and mid-cap companies with high growth potential.
While these funds can offer attractive returns, they come with higher volatility and risk. Ensure they align with your risk tolerance and investment horizon.
Contra Fund and Flexi Cap Fund:
SBI Contra Fund and Parag Parikh Flexi Cap Fund follow contrarian or flexible investment approaches, investing across market caps based on market conditions and valuation metrics.
These funds provide flexibility and active management, potentially outperforming benchmark indices over the long term.
Large Cap and Multi Cap Funds:
ICICI Prudential Bluechip Fund, Mahindra Manulife Multi Cap Fund, and SBI Large & Midcap Fund offer exposure to established large-cap and multi-cap companies.
These funds focus on quality stocks with strong fundamentals, providing stability and growth opportunities.
Professional Guidance and Direct Plans:
Instead of investing in direct plans, consider seeking guidance from a Certified Financial Planner or Mutual Fund Distributor (MFD) to optimize your investment decisions.
MFDs can provide personalized advice, portfolio reviews, and ongoing support to help you achieve your financial goals effectively.
Regularly review your portfolio with your MFD to ensure it remains aligned with your objectives and market conditions.
Risk Management:
Given your high-risk tolerance and long investment horizon, it's important to periodically assess and rebalance your portfolio to manage risk and capitalize on growth opportunities.
Stay informed about market developments and macroeconomic trends to make informed investment decisions.
Overall, your portfolio demonstrates a well-diversified approach to long-term wealth creation. Consider leveraging professional guidance from an MFD to optimize your investment strategy and achieve your retirement goals effectively. Regular monitoring and adjustments will be key to maintaining the performance and alignment of your portfolio over time.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |5056 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 14, 2024Hindi
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Which MF from SBI is topper in term of lweath gainer
Ans: SBI Mutual Funds offer a variety of schemes.

It's tempting to invest in top-performing funds.

However, chasing returns may not be the best strategy.

Consistency Over Performance
Consistent Performance: Look for funds with consistent performance over the long term.

Quality of Fund Management: Choose funds managed by experienced and reputed fund managers.

Diversification: Ensure the fund aligns with your risk tolerance and investment goals.

Avoiding Costly Investment Mistakes
Consult a Professional: Seek advice from a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD).

Tailored Advice: Professionals can provide tailored advice based on your financial situation.

Long-Term Perspective: Focus on long-term growth rather than short-term gains.

Evaluating Funds
Historical Performance: Review the fund's performance over at least 5-10 years.

Expense Ratio: Check the expense ratio, as higher costs can impact your returns.

Risk Assessment: Evaluate the risk associated with the fund and ensure it aligns with your risk profile.

Final Insights
Investing in mutual funds requires careful evaluation and planning. While top-performing funds may seem attractive, focusing on consistency and quality is more important. Consulting a Certified Financial Planner or Mutual Fund Distributor can help you avoid costly mistakes and make informed investment decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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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