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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jun 01, 2022

Mutual Fund Expert... more
Netra Question by Netra on Jun 01, 2022Hindi
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I have SIPs in following funds:

  • Axis long term equity 2000
  • ABSL focused equity fund 2000
  • ABSL low duration fund 7000
  • Axis blue chip fund direct growth 7000
  • Hdfc index sensex direct growtg fund 5000
  • Hdfc top 100 fund 1000
  • Invesco india contra fund growrh 1000
  • Invesco india growth opportunities direct growth 500
  • Nippon india growth fund 1000
  • Nipppon india large cap fund 500
  • Nippon india liquid fund 500
  • Nippon small cap fund direct 100
  • Nippon india tax saver elss 2000
  • Sbi blue chip fund growth 5000
  • Sbi flexi fund direct 2000
  • Sbi focused equity fund direct 2000
  • Sbi small cap fund direct 6000
  • Parag parikh flexi cap fund 5000

Should I continue for next 10 years above funds. Please suggest 

Ans: Reduce it by consolidating all these into 3-5 schemes.

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  |6290 Answers  |Ask -

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

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I am investing in following funds through SIP 1. HDFC top 200 Regular Growth since 2010 Rs. 3000 2. ICICI PRUDENTIAL LARGE & MIDCAP FUND GROWTH SINCE 2014 Rs. 2000 3. BANDHAN FLEXICAP FUND-GROWTH SINCE 2011 Rs. 2000 4. BSL FRONTLINE EQUITY FUND - GROWTH SINCE 2010 Rs. 3000 (STOPPED SIP IN 2020) 5. MIRAE ASSET BLUECHIP FUND - GROWTH SINCE 2021 Rs. 2500 6. HDFC FLEXI CAP - GROWTH SINCE 2022 Rs. 5500 PLEASE ADVICE ME WHETHER I SHOULD CONTINUE WITH THESE FUNDS OR EXIT. I FURTHER WANT TO INVEST Rs. 15000 MORE. PLEASE SUGGEST WHETHER I SHOULD INCREASE SIP AMOUNT IN THESE FUNDS OR START SIP IN NEW FUND
Ans: Assessing Your Mutual Fund Investments and Planning for the Future

Your portfolio demonstrates a disciplined approach to mutual fund investing over the years. Let's evaluate your current holdings and chart a course for future investments.

Analyzing Existing SIPs

HDFC Top 200, ICICI Prudential Large & Midcap, and Bandhan Flexicap Funds have been part of your investment journey for several years. These funds offer exposure to different market segments, providing diversification benefits.

BSL Frontline Equity Fund, while stopped in 2020, has a long track record of performance. It's essential to review the reasons for discontinuing this SIP and assess whether it aligns with your current investment strategy.

Mirae Asset Bluechip Fund and HDFC Flexi Cap Fund, initiated more recently, contribute to diversification and may offer growth potential.

Evaluating Performance and Suitability

Review the performance of each fund relative to its benchmark and peer group. Assess whether the fund manager's investment approach and strategy align with your risk tolerance and investment objectives.

Consider the consistency of returns, risk-adjusted performance, and fund management quality. Additionally, evaluate the fund's expense ratio and turnover ratio to ensure cost-effectiveness.

Deciding Whether to Continue or Exit

Continue SIPs in funds with consistent performance, robust fundamentals, and alignment with your investment goals.

Consider exiting funds that consistently underperform their benchmarks or peers, have experienced significant changes in fund management, or deviate from your risk profile.

Planning Additional Investments

Given your intention to invest an additional Rs. 15,000, consider the following options:

Increase SIP amounts in existing funds with proven track records and growth potential. This approach maintains continuity and capitalizes on the strengths of your current portfolio.

Explore new funds that complement your existing holdings and provide exposure to underrepresented sectors or asset classes. Conduct thorough research and seek professional advice to identify suitable options.

Seeking Professional Guidance

As a Certified Financial Planner, I recommend conducting a comprehensive portfolio review to ensure alignment with your financial goals and risk tolerance. Regular monitoring and periodic adjustments are essential to optimize your investment outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6290 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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I am investing in SIP for the last 5 years in axis long term equity 2000, uti nifty index fund 2000, sbi small cap fund 1000, quant active fund 2000, uti flexicap fund 2000. I have a timeline of 15years. Shall I continue or change some
Ans: It's commendable that you've been investing systematically for the past 5 years. Let's review your SIP portfolio and evaluate whether adjustments are needed to align with your long-term goals.

Analyzing Fund Selection:

Your SIP portfolio comprises a mix of equity funds, including Axis Long Term Equity, UTI Nifty Index Fund, SBI Small Cap Fund, Quant Active Fund, and UTI FlexiCap Fund. Each fund has its unique investment objective and risk profile.

Reviewing Performance:

Evaluate the performance of each fund relative to its benchmark index and peers over the past 5 years. Look for consistency in returns and assess whether the funds have met your expectations.

Assessing Fund Suitability:

Consider whether the selected funds align with your risk tolerance, investment horizon, and financial goals. Ensure that the portfolio is diversified across different market segments to mitigate risk.

Considering Market Conditions:

Review the current market conditions and economic outlook to assess potential opportunities and risks. Adjust your portfolio strategy accordingly to capitalize on emerging trends or mitigate downside risks.

Exploring Alternative Options:

If any of the funds in your portfolio consistently underperform or no longer align with your investment objectives, consider replacing them with better-performing alternatives. Consult with a Certified Financial Planner (CFP) for personalized advice.

Consultation with a Certified Financial Planner:

Engage with a Certified Financial Planner (CFP) to conduct a comprehensive review of your SIP portfolio. A CFP can provide insights into potential adjustments based on your financial goals, risk tolerance, and market outlook.

Conclusion:

In conclusion, periodic review and adjustments to your SIP portfolio are essential for optimizing returns and achieving your long-term investment goals. By staying informed, evaluating performance, and consulting with a Certified Financial Planner, you can make informed decisions to ensure the success of your investment journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6290 Answers  |Ask -

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

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Sir, I have SIPs in following fund: 1) ICICI Pru Bluechip Fund - Rs. 2000; 2) Mirae Asset Large Cap Fund - Rs. 1000; 3) HSBC Mid Cap Fund - Rs. 2000; 4) Nippon Small Cap Fund - Rs. 1000; 5) ICICI Pru Flexicap Fund - Rs. 2000; 6) HDFC Flexicap Fund - Rs. 2000; 7) ICICI Nifty IT Index Fund - Rs. 1000; 8) Motilal S&P 500 Fund - Rs. 1000; 9) Nippon India Silver ETF FOF - Rs. 1000. Should I continue?
Ans: Your disciplined approach to investing through Systematic Investment Plans (SIPs) is commendable. Diversifying across various fund categories shows a thoughtful strategy. Let’s analyse your portfolio in detail.

Large Cap Funds
You have investments in two large cap funds. These funds focus on established companies, providing stability and moderate growth.

Large cap funds are generally less volatile and offer steady returns, making them suitable for long-term goals.

Mid Cap and Small Cap Funds
Your portfolio includes mid cap and small cap funds. Mid cap funds invest in medium-sized companies, which can offer higher growth potential but come with increased risk.

Small cap funds invest in smaller companies, which are riskier but have significant growth potential.

Flexicap Funds
You have SIPs in two flexicap funds. Flexicap funds provide flexibility by investing across large, mid, and small cap stocks. This diversification within a single fund can enhance returns and reduce risk.

Sector and Thematic Funds
The inclusion of a sector-specific fund, like the Nifty IT Index Fund, and a thematic fund, like the Motilal S&P 500 Fund, adds diversity. However, these funds can be volatile as they are concentrated in specific sectors or themes.

Commodity-Based Fund
Your portfolio includes the Nippon India Silver ETF Fund of Funds (FOF). Commodity-based funds can provide diversification, but they can be volatile and are influenced by market demand and global trends.

Portfolio Overlap and Concentration
While your portfolio is diversified, it is essential to assess the overlap. Multiple funds investing in similar sectors or companies can lead to redundancy.

Disadvantages of Index Funds and ETFs
Index funds and ETFs track a specific index and replicate its performance. They cannot outperform the market since they lack active management.

Actively managed funds, on the other hand, aim to beat the market through strategic decisions and dynamic adjustments.

Benefits of Actively Managed Funds
Actively managed funds have experienced managers who strive to outperform the market. They can adjust the portfolio based on market conditions and select high-potential stocks, offering better returns.

Assessing the Need for Rebalancing
Given your portfolio, it may be beneficial to rebalance for optimal performance. Here are some suggestions:

Reduce Overlap: Consider reducing the number of large cap funds to avoid redundancy.

Focus on Quality Funds: Ensure the funds you invest in have a consistent performance record and a good management team.

Reevaluate Sector/Thematic Funds: Assess if the sector and thematic funds align with your risk tolerance and investment goals.

Regular Monitoring and Review
Regularly review your portfolio to ensure it aligns with your financial goals. Market conditions change, and periodic adjustments are necessary.

Consulting a Certified Financial Planner (CFP) can provide professional advice tailored to your needs. A CFP can help you select suitable funds, monitor performance, and make necessary adjustments.

Conclusion
Your diversified SIP portfolio shows a thoughtful approach towards long-term wealth creation. With some adjustments and regular reviews, you can enhance your portfolio's performance.

Focus on reducing overlap, prioritising actively managed funds, and aligning your investments with your financial goals. Keep up the good work and continue your disciplined investing.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |130 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 14, 2024

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I am 44 years old, married with a monthly salary of 4.5 lakhs after tax. I own a debt-free house. My daughter is 9 and my son is 4. I am looking to build a corpus of 2 crores for my children's education, 1 crore for their marriages, and to buy two additional houses. I also aim to accumulate a retirement corpus of 10 crores. Please advise on how I can achieve these goals in the next 10-15 years. Current Savings: • Fixed Deposit: 16 lakhs • Shares: 72 lakhs • Provident Fund (PF): 1.4 crores • Mutual Funds: 15 lakhs • Public Provident Fund (PPF): 10.5 lakhs • ULIP: 21 lakhs Ongoing Investments: • ULIP: 3 lakhs/year (for the next 3 years) • PPF: 1.5 lakhs/year (for the next 8 years) • Provident Fund (PF): 82,000/month Including company contribution. • Mutual Fund SIP: 60,000/month • Shares SIP: 30,000/month • Additional Shares Investment: 5 lakhs/year
Ans: Your current savings add upto 2.745 Cr.

Assuming you keep them invested and considering composite moderate return of 8% this will grow upto a sum of 8.71 Cr after 15 years.

Ongoing investments will lead you to a corpus of 6.66 Cr after 15 years(Appropriate conservative returns considering the various investment instruments)

6.66+8.71=15.37 Cr

Retirement corpus goal 10 Cr?
Children education fund goal 2Cr?
Children wedding goal 1Cr?
Additional home(2) buy 2Cr?

Keep reviewing and rationalising your stock holdings and hedge it if necessary as per advice from investment advisor.

Consider SSY in the name of your daughter (8.2% currently with quarterly review by GOI)since it's an E-E-E tax exempt scheme.

Do consider suitable family floater health cover apart employer group coverage.

You may follow us on X at @mars_invest for updates

Happy Investing

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Radheshyam

Radheshyam Zanwar  |867 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Sep 14, 2024

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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