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Ramalingam

Ramalingam Kalirajan  |7185 Answers  |Ask -

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

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
MuraliKrishna Question by MuraliKrishna on May 12, 2023Hindi
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Money

Hi.. I have SIP in HDFC Balanced advantage fund -3600/-, Tata Retirement saving fund -progressive plan -6300/-,Parag Parikh flexi cap -3600/- & Mirae asset emerging blue chip fund -2500/- since last 5 years.Can you please suggest me about the funds allocated shall provide good wealth in long time orgin as 15 years.or else any changes to be implemented. G.MuraliKrishna

Ans: Hello Mr. G. MuraliKrishna,

Let's review your SIP investments in HDFC Balanced Advantage Fund, Tata Retirement Saving Fund - Progressive Plan, Parag Parikh Flexi Cap Fund, and Mirae Asset Emerging Blue Chip Fund with a focus on long-term wealth creation over a 15-year horizon.

Portfolio Review:

HDFC Balanced Advantage Fund:
This fund follows a dynamic asset allocation strategy between equity and debt, aiming to capitalize on market opportunities while managing risk.
Tata Retirement Saving Fund - Progressive Plan:
This retirement-focused fund aims to provide growth through equity investments while gradually reducing equity exposure as you approach retirement.
Parag Parikh Flexi Cap Fund:
This fund offers flexibility to invest across market caps and sectors, focusing on long-term growth potential with a blend of domestic and international equities.
Mirae Asset Emerging Blue Chip Fund:
This fund focuses on emerging blue-chip companies with high growth potential, aiming to generate superior returns over the long term.
Recommendations:

Review Asset Allocation:
Ensure your portfolio's asset allocation aligns with your risk tolerance and investment horizon. A balanced approach with a mix of equity and debt can provide stability while capturing growth opportunities.
Emphasize Long-Term Growth:
Focus on funds with a strong track record of long-term performance and a proven ability to generate wealth over time. Funds like Parag Parikh Flexi Cap Fund and Mirae Asset Emerging Blue Chip Fund have demonstrated potential for long-term growth.
Consider Regular Reviews:
Periodically review your portfolio's performance and make necessary adjustments to ensure it remains aligned with your financial goals and market conditions.
Continue SIPs with Discipline:
Continue your SIPs with discipline and consider increasing contributions over time to benefit from the power of compounding. Regular investing can help navigate market volatility and capture growth opportunities.
Conclusion:

Your current SIP investments are diversified and well-suited for long-term wealth creation. Emphasizing long-term growth with a focus on funds like Parag Parikh Flexi Cap Fund and Mirae Asset Emerging Blue Chip Fund can potentially enhance your wealth over a 15-year horizon.

Regularly reviewing your portfolio's performance, ensuring a balanced asset allocation, and maintaining discipline in your SIP contributions are key to achieving your financial goals. Consider consulting with a Certified Financial Planner to personalize your investment strategy and navigate market dynamics effectively.

Remember, investing is a journey, and patience, discipline, and regular reviews are crucial for long-term success. Embrace this journey with confidence and commitment, and may your investments flourish over the years.
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  |7185 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 17, 2024

Asked by Anonymous - Jun 17, 2024Hindi
Money
I 40 years now and Just now i have invested lumpsum amount in following mutual funds- all are direct growth 1. Quant smalcap fund - Rs 300000 2. Quant midcap fund - Rs 300000 3. Nippon India muticap - Rs 200000 4. ICICI Pru bluechip fund - Rs 200000 5. Canara rabeco emerging eqt -Rs 50000 Just now started SIP in following funds. 1. Quant smalcap fund - Rs 4000 2. Quant midcap fund - Rs 4000 3. Quant Active fund - Rs 4000 4. ICICI Pru Debt & equity -Rs 4000 5. Parag perigkh flexicap - Rs4000 Is this funds are good for long run for a period of 10 years?. How much amount I can expect after 10 years. My goal is to Construct a own house after 10 years.
Ans: Congratulations on taking a significant step toward building your financial future by investing in mutual funds. At 40, you are making a smart move by planning for your long-term goal of constructing your own house. Your current investments and SIP (Systematic Investment Plan) choices reflect a well-thought-out strategy for wealth accumulation over the next 10 years. Let's evaluate and understand the potential of your investment portfolio in detail.

Understanding Your Lump Sum Investments
Diversification Across Market Capitalization
Your lump sum investments include a mix of small-cap, mid-cap, multicap, blue-chip, and emerging equity funds. This diversification helps in spreading risk and capturing growth across different market segments.

Small-Cap and Mid-Cap Funds: These funds have high growth potential but come with higher risk. Over a 10-year period, these funds can provide significant returns if the market conditions are favorable.
Multicap and Blue-Chip Funds: These funds invest across various market capitalizations, providing a balanced approach. Blue-chip funds, specifically, offer stability as they invest in well-established companies.
Emerging Equity Fund: Investing in emerging sectors can be beneficial as these sectors have the potential for substantial growth in the future.
Potential Growth and Risks
Investing Rs 3,00,000 each in small-cap and mid-cap funds shows a high-risk appetite, which can be rewarding over the long term. The Rs 2,00,000 investments in multicap and blue-chip funds provide a cushion against volatility, balancing the portfolio. The Rs 50,000 in the emerging equity fund is a strategic move to tap into new growth areas.

Systematic Investment Plan (SIP) Contributions
Regular Investment Discipline
Starting SIPs in multiple funds ensures a disciplined approach to investing, taking advantage of rupee cost averaging and compounding benefits.

Small-Cap and Mid-Cap Funds: Continuing SIPs of Rs 4,000 each in these funds reinforces your growth strategy. Consistent investments will help mitigate market volatility over time.
Active Fund: SIP of Rs 4,000 in an active fund shows your trust in fund managers' expertise to outperform the market.
Debt & Equity Fund: This balanced approach with a Rs 4,000 SIP ensures you have a mix of stability and growth.
Flexicap Fund: A Rs 4,000 SIP here provides flexibility to invest across various market caps, enhancing diversification.
Balancing Risk and Return
Your SIPs indicate a balanced approach towards growth and stability. By investing Rs 20,000 monthly across these funds, you are steadily building your corpus, reducing the impact of market fluctuations, and benefiting from potential long-term growth.

Evaluating Your Investment Choices
Long-Term Growth Potential
Your chosen funds have the potential to grow significantly over the next 10 years. Historical data suggests that well-managed mutual funds, particularly in small-cap and mid-cap categories, can offer impressive returns. However, they are also subject to market risks.

Importance of Active Management
Actively managed funds have the advantage of fund managers making strategic decisions to maximize returns. While passive funds like index funds simply track the market, actively managed funds aim to outperform. Your choice of actively managed funds reflects a desire for potentially higher returns through expert management.

Assessing the Disadvantages of Direct Funds
Direct mutual funds have lower expense ratios since they do not involve intermediary commissions. However, without the guidance of a Certified Financial Planner (CFP), you might miss out on professional advice, which can be crucial for optimizing your investment strategy. A CFP provides valuable insights and helps in tailoring your portfolio to meet specific goals.

Expected Returns and Goal Achievement
Potential Corpus After 10 Years
Predicting exact returns is challenging due to market volatility. However, based on historical performance, equity mutual funds have the potential to yield substantial returns over a decade. Assuming a conservative average annual return, your lump sum and SIP investments can grow significantly, helping you reach your goal of constructing a house.

Importance of Regular Review
It is essential to regularly review your portfolio with your CFP. This ensures your investments remain aligned with your goals and market conditions. Adjustments may be needed to optimize performance and mitigate risks.

Benefits of Working with a Certified Financial Planner
Professional Guidance
A CFP can provide personalized advice, ensuring your investment strategy aligns with your long-term goals. Their expertise helps in navigating market complexities and making informed decisions.

Tailored Investment Strategies
CFPs consider your risk tolerance, financial goals, and market conditions to design a tailored investment plan. They help in balancing your portfolio and ensuring it adapts to changing circumstances.

Investing is a journey that requires patience and persistence. It's commendable that you are planning for a significant goal like constructing your own house. Your disciplined approach through lump sum investments and SIPs shows a strong commitment to your future. Understanding the risks and rewards associated with your chosen funds is crucial, and it's great to see you taking proactive steps.

Final Insights
Your current investment strategy, with a mix of lump sum and SIP investments in diversified mutual funds, is well-suited for long-term growth. By maintaining this approach and regularly consulting with your CFP, you are on a promising path toward achieving your goal of constructing your own house in 10 years. Stay focused, keep reviewing your portfolio, and adapt as necessary to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1076 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 30, 2024

Asked by Anonymous - Nov 29, 2024Hindi
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Career
Hello sir, I am a 11th grade student. Now iam very confused amd depressed that what should i study now. Let me tell my goals. 1st thing is i want to get top 3 rank in my school examination and 2nd is to prepare for JEE MAIN examination and 3rd is to complete 12th std portions before May month 2025 to score a very good mark in my 12th board examination at 2026. And i also need to complete my JEE MAINS portions before november month for my Jee mains examination which is at Jan month and i need to crack it with 99 percentile at my first attempt and get into any one of the prestigious colleges. But iam very confused that what engineering should i choose. According to me I love all the engineering fields but i need to choose a field which will give the highest salary.These are the things that are revolving in my mind. Can you please give me perfect solution for my 5 confusions..
Ans: Hello dear.
Without taking an examination, without any score in hand, without any college in hand, without any course in hand, you are thinking and thinking and thinking for no reason. The goals/targets set by you are appreciable. But to convert them into reality, you have to work hard and excel in all the examinations. The highest salary is not only based on your degree or only on the college name. There are a lot of other parameters. Your journey is very long. Please keep your eyes only on your studies. Crack JEE (Mains + Adv) with a high score, get admission to a top IIT college, and choose the best course of your liking. Excel in the engineering then test the flavour of success. Best of luck for your upcoming bright future.

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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