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Should I stop my Quant Infrastructure Fund SIP?

Ramalingam

Ramalingam Kalirajan  |8176 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 18, 2025

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
Anoop Question by Anoop on Feb 15, 2025Hindi
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Should I stop SIP of quant infrastructure fund direct growth Invesing from last two year 5000 monthly SIP. If I stop this SIP in which fund should I invest Please suggest.

Ans: Your investment approach needs careful assessment before stopping the SIP. The decision should be based on your risk profile, goals, and portfolio balance.

Assessing the Current SIP in Sectoral Fund
Sectoral funds focus on one industry, making them highly volatile.

They perform well in specific cycles but can be risky in downturns.

Holding them for long-term wealth creation may not be ideal.

If the fund has performed well so far, consider partial exit.

If you seek more stability, shifting to diversified funds is better.

Should You Stop the SIP?
If this is your only SIP, stopping is not recommended.

If you already hold diversified funds, partial withdrawal is an option.

Sectoral funds need regular tracking and rebalancing.

If you don’t have time for active monitoring, consider a switch.

Alternative Investment Options
Diversified Equity Funds
These funds invest in multiple sectors, reducing risk.

They are managed actively to capture market opportunities.

They offer better stability compared to sectoral funds.

Large and Mid-Cap Funds
These funds balance stability and growth potential.

Large caps provide steady returns, while mid-caps offer higher upside.

They are less risky than pure mid-cap or sectoral funds.

Balanced Advantage Funds
These funds shift between equity and debt based on market conditions.

They reduce downside risk during market corrections.

Suitable for investors seeking moderate risk with consistent returns.

Multi-Asset Funds
These invest in equity, debt, and gold for diversification.

They lower risk while ensuring steady performance.

Ideal if you want less market-linked volatility.

Tax Implications if You Redeem
Equity Mutual Funds:

LTCG above Rs 1.25 lakh taxed at 12.5%.

STCG taxed at 20%.

If you shift from sectoral to diversified funds, staggered withdrawals help.

Final Insights
Sectoral SIPs need close tracking; diversified funds offer stability.

If your portfolio lacks balance, shifting is a wise move.

Consider switching to diversified or balanced funds for long-term growth.

Review investments periodically to ensure alignment with goals.

Let me know if you need a specific fund recommendation.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |8176 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  |8176 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 10, 2024Hindi
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I have invested in 2 SIPs for 2000 pm each for both HDFC small cap fund and Quant infrastructure fund. Please tell me should I continue with these funds or should I switch it. Are these funds good for long term?
Ans: Your proactive approach to assessing your SIP investments demonstrates your commitment to financial prudence and growth. Let's delve into an evaluation of HDFC small cap fund and Quant infrastructure fund to determine their suitability for long-term investment.

Understanding Your Investment Landscape:
Before making any decisions, it's essential to gain a comprehensive understanding of the funds you've invested in and their performance.

Assessing HDFC Small Cap Fund:
Pros:

Strong Track Record: HDFC small cap fund has a history of delivering favorable returns, leveraging opportunities in the small-cap segment.
Growth Potential: Small-cap funds have the potential for significant growth over the long term, driven by the growth trajectory of small-sized companies.
Cons:

Higher Risk: Small-cap funds are inherently more volatile than large-cap or multi-cap funds, making them susceptible to market fluctuations.
Market Dependency: Performance may be influenced by market conditions and sectoral trends, requiring a long-term investment horizon to mitigate short-term volatility.
Assessing Quant Infrastructure Fund:
Pros:

Sectoral Focus: Quant infrastructure fund focuses on the infrastructure sector, which plays a crucial role in driving economic growth and development.
Growth Opportunities: Investments in infrastructure can offer compelling growth opportunities, particularly in emerging markets like India.
Cons:

Sectoral Risks: Sectoral funds are exposed to specific sectoral risks, such as regulatory changes, government policies, and macroeconomic factors.
Limited Diversification: Concentration in a single sector may lack the diversification benefits offered by broader equity funds, increasing risk exposure.
Considering Long-Term Viability:
While both HDFC small cap fund and Quant infrastructure fund offer growth potential, it's crucial to assess their suitability for long-term investment.

Key Considerations:
Performance History: Evaluate the funds' performance over various market cycles to gauge consistency and resilience.
Fund Manager Expertise: Assess the expertise and track record of the fund managers in navigating market challenges and capitalizing on opportunities.
Making Informed Decisions:
Based on your investment objectives, risk tolerance, and market outlook, consider whether to continue with your current SIP investments or explore alternative options.

Continuation: If the funds align with your long-term financial goals and you're comfortable with the associated risks, continuing with your SIPs may be prudent.

Review and Adjustment: If you're uncertain about the funds' performance or have concerns about risk exposure, consider reviewing your investment strategy and potentially reallocating your investments.

Commitment to Financial Growth:
As a Certified Financial Planner, I'm here to guide you through the decision-making process, providing insights and recommendations tailored to your unique financial circumstances and goals.

Conclusion: Navigating the Path to Financial Success
In conclusion, evaluating your SIP investments requires a thorough analysis of fund performance, risk factors, and long-term viability. By making informed decisions and staying committed to your financial objectives, you pave the way for sustained growth and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

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Milind

Milind Vadjikar  |1147 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 02, 2025

Milind

Milind Vadjikar  |1147 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 02, 2025

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Planning for retirement is crucial, yet many people delay making key financial decisions. With options such as workplace pensions, private pensions, and state pensions, how can individuals determine the best strategy to ensure a financially secure retirement while optimising tax benefits?
Ans: Hello;

Retirement is the one of the most important financial goal and the key is you won't get loan to meet that requirement.

Typically people neglect it in early part of their career and then get a rude shock when hardly 10-15 years are left for retirement and they can't meet target corpus amount despite heavy investments.

NPS is a great retirement product for every Indian.

In fact since it's costs are so low that you won't find people promoting it or advertising about it.

NPS is similar to workplace pension but is available for businessmen and self employed people too.

Except for a minimum 1000 per year in Tier 1 account there is no compulsion to invest and also their is no upper limit to investment. However you may automate your investment in NPS using D-remit feature.

Limited withdrawals are allowed subject to terms and limits.

You can change your fund manager if you are not satisfied with its performance and also you can have different fund managers for different asset classes.

EPS is a add-on to other sources of retirement income and can't be the the only source since the maximum pension amount is limited to Rs. 7500 per month.

Unit linked pension plans are like private pensions but are a poor and inefficient copy of NPS.

In India only Govt employees are eligible for state pension.

PPF/EPF are also avenues for building retirement corpus but interest on EPF contribution above Rs. 2.5 L in a financial year invokes tax and PPF has lower interest rate.

Best strategy to secure financially secure retirement is to begin with a small amount from your first salary and later stepping up with increased income.

Best wishes;

...Read more

Ramalingam

Ramalingam Kalirajan  |8176 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 02, 2025Hindi
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Despite earning a decent salary,I often find myself living from one payday to the next, struggling to save. I don't have significant debts, yet my expenses seem to absorb my entire income. What practical steps can I take to break this cycle and start building financial stability?
Ans: Many people face the challenge of earning a decent salary yet struggling to save. If your expenses absorb your entire income, it’s time to take control of your finances with a structured approach. Here’s how you can break the cycle and start building financial stability.

1. Track and Analyse Your Expenses
Identify spending leaks by tracking all expenses for a month.

Use spending tracker apps or a simple notebook to record daily expenses.

Categorise expenses into essentials (rent, food, utilities) and non-essentials (shopping, entertainment, eating out).

Spot unnecessary expenditures and set limits on avoidable expenses.

2. Set a Realistic Budget
Follow the 50-30-20 rule:

50% for needs (housing, bills, groceries).

30% for wants (shopping, entertainment, travel).

20% for savings and investments.

If savings seem difficult, reverse budgeting may work better. Allocate savings first, then spend what remains.

Automate bill payments to avoid late fees and unnecessary penalties.

3. Build an Emergency Fund
Set aside at least 6 months’ worth of expenses in a liquid fund.

Use a separate savings account for emergency funds to avoid spending it impulsively.

Automate transfers to this fund to ensure consistency.

4. Prioritise Saving Over Spending
Start small with savings if your expenses are tight. Even Rs 1,000 per month creates a saving habit.

Use automatic deductions to ensure savings before spending.

Increase savings percentage whenever you get a salary hike or bonus.

5. Cut Down on Unnecessary Expenses
Identify subscriptions you don’t use (streaming services, gym memberships).

Reduce frequent dining out and start cooking at home.

Choose budget-friendly alternatives for entertainment, shopping, and travel.

Negotiate for lower bills on rent, internet, and insurance.

6. Start Investing Wisely
Keep money working for you through investments rather than letting it sit idle.

Consider mutual funds through SIPs to build wealth over time.

Avoid investment-cum-insurance policies. Instead, opt for a separate term insurance and investments.

Invest in a mix of debt and equity based on your risk appetite.

7. Avoid Lifestyle Inflation
Salary hikes should increase savings, not expenses.

Maintain your current lifestyle and direct additional income towards savings.

Differentiate between needs and wants before making big purchases.

8. Plan for Future Goals
Define short-term and long-term goals (buying a home, early retirement, travel).

Assign a dedicated investment for each goal.

Adjust spending habits to align with your bigger financial vision.

9. Monitor and Adjust Regularly
Review your budget every 3-6 months to adjust based on changes in income or expenses.

Keep track of financial progress and celebrate small wins to stay motivated.

If needed, seek guidance from a Certified Financial Planner (CFP) like us for a customised financial strategy.

Final Thoughts
Breaking the paycheck-to-paycheck cycle requires discipline and consistency. By tracking expenses, budgeting wisely, saving first, and investing smartly, you can achieve financial stability and long-term wealth creation. Taking small but steady steps will lead to financial freedom in the long run.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...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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