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Ramalingam

Ramalingam Kalirajan  |9407 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
Asked by Anonymous - Jan 03, 2024Hindi
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Hi, here are my SIP's. Pls let me know if the portfolio is good or should i diversify some of them. Thanks Hdfc flexi cap fund -growth Kotak flexicap fund-growth Paragraph parish flexi cap fund . Growth Same flexi cap fund -growth Hdfc focused 30 fund.growth Icici pro large and mid cap.growth Mire asset emerging blue chip -growth Icici pru bluechip fund .growth Sbi blue chip fund . Growth Hdfc mid cap opportunities fund.growth Kotak emerging equity fund.growth Mire asset multi cap fund.growth Nippon india multicap fund.growth Bandhan financial services fund-growth Hdfc transportation and logistics fund.growth Quant manufacturing fund.growth Icici pro small cap fund. Nippon india small cap fund Icici pru multi asset fund Kotak multi asset allocation fund Tata small cap fund

Ans: You've put together quite an extensive list of SIPs across various categories. While diversification is a key principle in investing, it's also essential to ensure that the portfolio aligns with your investment goals, risk tolerance, and time horizon.

Firstly, let's reflect: are there overlaps within these funds? Some of them might have similar objectives or may even hold overlapping stocks. Over-diversification can dilute returns, so it's crucial to maintain a balance.

Considering you have multiple flexi-cap funds, have you thought about the need for so many? Flexi-cap funds inherently offer flexibility to invest across market caps, so having too many might not add significant value.

Additionally, you've covered a broad spectrum from large-cap to small-cap, which is good for diversification. However, have you assessed your risk appetite given the exposure to small and mid-cap funds, which can be more volatile?

Lastly, while the list is diverse, have you considered thematic or sectoral funds' potential risks? They can be rewarding but come with higher volatility due to their specialized focus.

A Certified Financial Planner can provide a holistic view, ensuring your portfolio is both diversified and aligned with your financial goals.
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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Asked by Anonymous - Nov 30, 2023Hindi
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Hello Sir, I invest 80K per month on SIP. Below is my portfolio. Can you suggest if this is good or I need to make any changes? SBI Blue Chip Fund - Direct Plan - Growth: 10,000 SBI Nifty Smallcap 250 Index Fund - Direct Plan - Growth: 15,000 Invesco India Contra Fund - Regular Growth: 10,000 Mirae Asset Large Cap Fund - Regular Plan: 10,000 SBI Magnum Comma Fund - Direct Plan - Growth: 5,000 SBI Small Cap Fund Direct Growth: 5,000 Canara Robeco Flexi Cap Fund - Regular IDCW: 5,000 Canara Robeco Infrastructure - Regular Growth: 5,000 DSP Natural Resources and New Energy Fund - Regular Plan - Growth: 5,000 Edelweiss Small Cap Fund - Regular Plan Growth: 5,000 Mahindra Manulife Small Cap Fund - Regular - Growth: 5,000
Ans: Your investment approach is diversified, covering various segments of the market. However, it appears slightly overdiversified with multiple funds in similar categories.

Consider consolidating your portfolio to reduce complexity and streamline management. Focus on high-performing funds with strong track records and consistent management.

Ensure each fund aligns with your risk tolerance and investment goals. Review the performance of each fund regularly and make adjustments as necessary.

Be cautious of overexposure to small-cap and sector-specific funds, as they can be volatile. Balance your portfolio with a mix of large-cap, mid-cap, and diversified equity funds for stability and growth potential.
There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Regularly monitor your portfolio's performance and make adjustments to maintain your desired asset allocation and risk profile.

Remember, simplicity and clarity are key to effectively managing your investments. Streamlining your portfolio will make it easier to track and optimize over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9407 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 25, 2024

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Hi, I am 22 years old doing SIP of Rs. 16,000 per month in these following funds:- 1. Parag Parikh Flexi Cap Fund :- 4500 2. Quant Flexi Cap Fund :- 4500 3. Nippon India Large Cap Fund:- 2000 4. Motilal Oswal Mid Cap Fund:- 1500 5. Quant Mid Cap Fund:- 1500 6. Axis Small Cap Fund:- 1000 7. Bandhan Small Cap Fund:- 1000 Please do a review of my portfolio and give your suggestions. Thank you!
Ans: You have a well-diversified SIP portfolio. Investing Rs. 16,000 monthly at 22 is a commendable step. This shows your commitment to building wealth over time. Let’s review your portfolio and provide suggestions for improvement.

Current Portfolio Analysis
Your current SIP investments include:

Parag Parikh Flexi Cap Fund: Rs. 4,500

Quant Flexi Cap Fund: Rs. 4,500

Nippon India Large Cap Fund: Rs. 2,000

Motilal Oswal Mid Cap Fund: Rs. 1,500

Quant Mid Cap Fund: Rs. 1,500

Axis Small Cap Fund: Rs. 1,000

Bandhan Small Cap Fund: Rs. 1,000

Diversification and Allocation
Flexi Cap Funds
Parag Parikh Flexi Cap Fund and Quant Flexi Cap Fund:

Advantages: Flexi cap funds invest across all market capitalizations. They provide flexibility to capture growth opportunities.

Risk and Return: These funds balance risk and return by diversifying investments across large, mid, and small cap stocks.

Evaluation:

Sufficient Exposure: Investing in two flexi cap funds provides adequate exposure to diverse market segments.

Potential Overlap: Check for overlapping stocks to ensure true diversification.

Large Cap Fund
Nippon India Large Cap Fund:

Advantages: Large cap funds invest in established companies. They offer stability and lower volatility compared to mid and small cap funds.

Risk and Return: Lower risk with moderate returns. Suitable for long-term stability in the portfolio.

Evaluation:

Stability Factor: Including a large cap fund adds stability to your portfolio.

Maintain Allocation: Continue with your current allocation to ensure balance.

Mid Cap Funds
Motilal Oswal Mid Cap Fund and Quant Mid Cap Fund:

Advantages: Mid cap funds invest in growing companies. They have the potential for higher returns than large caps but with higher risk.

Risk and Return: Higher volatility with the potential for significant returns.

Evaluation:

Growth Potential: Two mid cap funds provide a good balance of growth potential.

Diversification: Ensure there is minimal overlap between the funds to maximize diversification.

Small Cap Funds
Axis Small Cap Fund and Bandhan Small Cap Fund:

Advantages: Small cap funds invest in emerging companies. They offer high growth potential but come with higher risk.

Risk and Return: High volatility with the possibility of substantial returns.

Evaluation:

Aggressive Growth: Small cap funds are suitable for aggressive growth in your portfolio.

Monitor Performance: Regularly monitor these funds due to their high volatility.

Recommendations for Improvement
Review Fund Overlaps
Diversification Check: Ensure there is minimal overlap among stocks in your flexi cap, mid cap, and small cap funds.

Balanced Exposure: Aim for a balanced exposure to different sectors and industries.

Rebalance Portfolio
Current Allocation: Your portfolio is skewed towards flexi cap funds.

Suggested Allocation: Consider increasing the allocation to large cap funds for stability. This ensures a balanced risk-return profile.

Long-Term Strategy
Stay Invested: Continue your SIPs for the long term to benefit from rupee cost averaging and compounding.

Periodic Review: Review your portfolio periodically to ensure it aligns with your financial goals.

Additional Suggestions
Emergency Fund
Liquidity: Maintain an emergency fund equivalent to 6-12 months of your expenses. This ensures liquidity for unforeseen circumstances.
Health and Term Insurance
Health Insurance: Ensure you have adequate health insurance coverage. This protects you against medical emergencies.

Term Insurance: Consider term insurance for financial security of your dependents in case of an untimely demise.

Education and Learning
Continuous Learning: Keep learning about personal finance and investments. This helps you make informed decisions.

Seek Advice: Consider consulting a Certified Financial Planner (CFP) for personalized advice tailored to your financial goals.

Conclusion
Your current SIP portfolio is well-diversified and on the right track. A balanced approach with adjustments can further optimize it. Investing in mutual funds through SIPs is a commendable strategy for wealth creation. Regularly review and rebalance your portfolio. This ensures it aligns with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9407 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 16, 2024

Asked by Anonymous - Jun 16, 2024Hindi
Money
Hi sir. I am 38 years old have started SIP from 2024 jan. Following are the fund i am doing SIP. 1. Kotak ELSS 2. Quant ELSS 3.parag parikh flexi cap- regular 4.Nippon infrastructure growth-regular 5. SBI contra- regular 6.franklin india focussed equity fund-regular 7.Bajaj finserv multiasset alocation-regular 8.ICICI prudential silver ETF fund 9.ICICI prudential bharat 22 fof 10. HDFC small cap fund- regular My total monthly SIP amount 23000 INR. Kindy let me know if i have good portfolio diversification. Do i need to stop SIP in any kf above fund and start some other good fund. My motto is to get maximum return for next 10-15 years.
Ans: Assessing Your Investment Portfolio
Your investment portfolio is diversified, and that is commendable. However, let’s delve into the specifics of your funds to see if there’s room for optimization. Portfolio diversification is essential, but too many funds can lead to over-diversification, which might dilute returns.

Equity Linked Savings Schemes (ELSS)
You have two ELSS funds. ELSS is excellent for tax-saving under Section 80C. They also offer the potential for high returns due to their equity exposure. However, investing in multiple ELSS funds can be redundant. Consider consolidating your ELSS investments into one well-performing fund to streamline your portfolio.

Flexi Cap Funds
Flexi cap funds are versatile as they invest across market capitalizations based on the fund manager's outlook. Your flexi cap fund choice is prudent as it offers flexibility and diversification within itself. This type of fund can balance risk and reward effectively, adapting to market conditions.

Sectoral and Thematic Funds
You are investing in an infrastructure growth fund. Sectoral funds can provide high returns but come with higher risk due to their concentrated exposure. Infrastructure is a promising sector but is also susceptible to economic cycles and regulatory changes. It’s wise to limit exposure to such sector-specific funds to avoid significant volatility in your portfolio.

Contra Funds
Contra funds invest in undervalued stocks and follow a contrarian approach. These funds can provide significant returns during market corrections when undervalued stocks rebound. However, they require patience and a long-term horizon, which aligns well with your 10-15 year investment goal.

Focused Equity Funds
Focused equity funds concentrate on a limited number of stocks. This strategy can yield higher returns if the selected stocks perform well but also increases risk due to lower diversification. Ensure that the focused equity fund aligns with your risk tolerance and long-term goals.

Multi-Asset Allocation Funds
Multi-asset allocation funds invest across asset classes like equity, debt, and gold, providing diversification and risk management. This fund type is suitable for balanced growth and risk mitigation. Including such a fund in your portfolio adds stability and reduces dependency on market performance.

Precious Metals Fund
Your investment in a silver ETF fund adds an element of commodity diversification. Precious metals like silver can hedge against inflation and currency fluctuations. However, precious metal funds can be volatile and might not perform consistently over time. Limit exposure to such funds to avoid excessive risk.

Fund of Funds (FoF)
The Bharat 22 FoF invests in a basket of stocks from the Bharat 22 index, providing diversification within a single fund. FoFs can offer easy access to diversified portfolios but come with higher expense ratios due to the layered fee structure. Ensure the FoF aligns with your overall investment strategy and cost considerations.

Small Cap Funds
Small cap funds invest in smaller companies with high growth potential. These funds can offer substantial returns but also come with higher risk due to market volatility. Given your long-term horizon, small cap funds can be a valuable addition for capital growth, but monitor their performance and risk exposure closely.

Regular vs. Direct Funds
You have chosen regular plans through a mutual fund distributor (MFD) with a Certified Financial Planner (CFP) credential. Regular funds have slightly higher expense ratios due to distributor commissions. However, the guidance and advice from a certified professional can be invaluable in navigating market complexities and making informed decisions. Direct funds, while cheaper, require a deep understanding of market dynamics and continuous monitoring, which might not be feasible for all investors.

Disadvantages of Index Funds
Index funds, which you haven't opted for, have the disadvantage of passively following a market index. They cannot outperform the market as they merely replicate index performance. In contrast, actively managed funds, like the ones in your portfolio, have the potential to outperform through strategic stock selection and market timing by experienced fund managers. Active management can add significant value, especially in volatile or bearish markets.

Portfolio Optimization Suggestions
Consolidate ELSS Investments: Streamline your ELSS investments into one well-performing fund to avoid redundancy and simplify tracking.

Review Sectoral Fund Exposure: Limit exposure to sectoral funds like the infrastructure growth fund to manage risk better. Sectoral funds should not form a large portion of your portfolio.

Focus on Core Holdings: Maintain a balanced mix of flexi cap, contra, and focused equity funds as core holdings for stable and diversified growth.

Limit Precious Metals and Sectoral Exposure: Keep your investments in precious metals and sectoral funds minimal to avoid excessive risk from market volatility.

Evaluate Expense Ratios: Regularly review the expense ratios of your funds, especially the FoFs, to ensure they are cost-effective relative to their performance.

Understanding Market Cycles and Patience
Investing for 10-15 years requires understanding market cycles and having patience. Markets will have ups and downs, and staying invested during downturns is crucial for long-term growth. Avoid the temptation to make frequent changes based on short-term market movements. Instead, focus on your long-term goals and stay committed to your investment strategy.

Regular Review and Rebalancing
Regularly reviewing your portfolio and rebalancing it as needed is vital. As market conditions change, the allocation of your investments may drift from your original plan. Rebalancing ensures that your portfolio remains aligned with your risk tolerance and investment objectives. It also helps lock in gains and manage risks effectively.

Importance of Diversification
Diversification reduces risk by spreading investments across various asset classes and sectors. While you have diversified your investments, ensure that no single fund or sector dominates your portfolio. Proper diversification can enhance returns while mitigating risks, helping you achieve a balanced and resilient portfolio.

Role of a Certified Financial Planner
Working with a Certified Financial Planner (CFP) provides access to professional advice tailored to your financial goals. A CFP can help you make informed decisions, optimize your portfolio, and navigate complex market conditions. Their expertise ensures that your investments are aligned with your risk tolerance and long-term objectives.

Final Insights
Your current portfolio demonstrates a commendable approach towards diversification and long-term growth. However, streamlining your investments and focusing on core holdings can enhance returns and manage risks more effectively. Regular reviews and rebalancing, along with professional guidance from a Certified Financial Planner, will ensure that your investment journey remains on track towards achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

Nayagam P P  |7939 Answers  |Ask -

Career Counsellor - Answered on Jul 05, 2025

Asked by Anonymous - Jul 05, 2025Hindi
Career
Hello sir, My son has got CSE in MIT Manipal campus and is also hopeful to get MSc Maths (Dual Degree, that might open a door to get BE-CSE in second year) in BITS Pilani. What is your suggestion he should opt for?
Ans: MIT Manipal’s four?year B.Tech CSE is NBA and NAAC?accredited, taught by 120+ PhD?qualified faculty in specialised AI/ML, cybersecurity, IoT and software?engineering labs, on a Wi-Fi campus with Innovation Centre and global exchange. Its dedicated placement cell recorded 77% overall and ~81% CSE branch placements in 2025, with 230+ recruiters including Amazon, Bosch and Microsoft. BITS Pilani’s five-year integrated M.Sc. Mathematics dual-degree (Group B + BE CSE option) is NAAC A+ rated, led by eminent researchers, offers rigorous master’s-level courses, Practice School internships and capstone projects, with 73.6% batch placements in 2024 and average packages of ?19.7 LPA via top tech recruiters. Dual-degree students compete for BE-CSE seats after Year 1 based on CGPA, adding flexibility for a software career.

Final recommendation: If your son seeks research depth, a master’s credential, and the chance to pivot into BE-CSE in Year 2, choose BITS Pilani M.Sc. Mathematics Dual-Degree. Else, for strong immediate placements, cutting-edge labs, and a four-year timeline, the recommendation is MIT Manipal CSE for him. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7939 Answers  |Ask -

Career Counsellor - Answered on Jul 05, 2025

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Career Counsellor - Answered on Jul 05, 2025

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Career Counsellor - Answered on Jul 05, 2025

Career
Sir my son got mechanical in IIT KGP and there is a chance to get computer science in IIT Patna and other tier3 IITs which one I choose
Ans: Sai Sir, IIT Kharagpur’s B.Tech Mechanical Engineering, NBA-accredited and delivered by research-active PhD faculty in advanced manufacturing and thermofluids labs, achieved an 85.79% placement rate for mechanical graduates in 2020-21 and routinely exceeds 90% overall campus placements. IIT Patna’s B.Tech CSE, NBA-accredited with dedicated AI/ML and computing infrastructure, recorded 100% CSE placements in 2024 with top recruiters like Google, Microsoft and Amazon. IIT Ropar’s CSE, part of a NIRF-ranked second-generation IIT, placed 81.61% of its 2024 CSE cohort through strong data-science and software labs. IIT Bhilai’s newer CSE program delivered 68.63% placements in 2024, supported by cybersecurity and cloud-computing facilities. IIT Goa’s B.Tech CSE, despite its recent establishment, achieved 100% CSE placements in early cohorts via specialized AI/data labs and strong industry tie-ups. All options offer mandatory internships, active placement cells, modern infrastructure, and robust alumni networks.

Final recommendation: For the highest CSE placement consistency, modern computing infrastructure, and mid-tier IIT brand value, recommendation is IIT Patna CSE. If a core engineering pedigree and long-standing campus ecosystem are paramount, recommendation is IIT Kharagpur Mechanical. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7939 Answers  |Ask -

Career Counsellor - Answered on Jul 05, 2025

Career
Hello Sir, my son is interested towards robotics and he has two options to choose from MUJ CSE ( we anticipated Mech or automobile engg in MIT main branch, however landed into CSE) and VIT AP Mechanical Robotics IN Cat 1. Considering his interests, ROI and overall industry trend, what is your advice ?
Ans: Vikash Sir, Manipal University Jaipur (MUJ) CSE offers an industry-aligned curriculum, 88–93% placement rates, and top recruiters like Amazon, Microsoft, and Bosch, with strong interdisciplinary options in robotics and AI. While MUJ’s CSE is highly valued for software careers, it also allows minors or electives in robotics and AI, supporting a shift toward automation and intelligent systems. VIT-AP Mechanical (Robotics), NAAC A++ accredited, is a newer program with dedicated robotics labs, mechatronics, and a placement record of 90% in 2024, but its industry connections and alumni network are still developing. Robotics engineering as a field is booming in India, with major growth in automation, manufacturing, and AI-driven sectors, but most roles now require strong programming, AI, and data skills in addition to mechanical expertise.

Recommendation: For the best return on investment (ROI), industry relevance, and flexibility to pursue robotics through coding, AI, and automation, choose MUJ CSE. It offers broader career options, strong placements, and the ability to specialize in robotics via electives or projects, matching current and future industry trends. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7939 Answers  |Ask -

Career Counsellor - Answered on Jul 05, 2025

Career
Sir, my daughter got 20000 OBC NCL rank in jee main. She is interested in Govt jobs in future. Which will be better. NIT Bhopal Mechanical or NIT Silchar Chemical or IIIT Bhubaneswar CSE. Kindly reply
Ans: Mahesh Sir, NIT Bhopal’s Mechanical Engineering, with NBA accreditation and a 90.3% placement rate in 2023, boasts robust core labs, an active training?and?placement cell, and annual visits by over 200 recruiters, including leading PSUs, resulting in 88% of the 2024 batch securing offers. NIT Silchar’s Chemical Engineering, NBA accredited and affiliated to a central university, recorded an 82.4% placement rate in 2023, supported by specialized chemical and process engineering facilities, mandatory internships, and sector?focused recruiters but fewer PSU drives compared to core branches. IIIT Bhubaneswar’s CSE, NAAC accredited, features modern computing, AI/ML, and cybersecurity labs, with 71% CSE placements in 2024 through 42 recruiters, though PSU participation is limited in IT roles. For students aiming at government sector careers—especially in PSUs recruiting heavily from core engineering streams—strong core infrastructure, dedicated PSU placement drives, and alumni networks are critical factors.

Final recommendation: For a clear pathway into PSUs and government engineering roles, recommendation is NIT Bhopal Mechanical, given its superior PSU engagement, dedicated core labs, and consistently high placement rates. All the BEST for Admission & a Prosperous Future!

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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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