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Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 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 - May 08, 2024Hindi
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Hi Team, I am 35 and have below SIPs. Please review them and let me know if i have to make any changes. Parag Pareikg flexi cap fund - 10000 Motilal Oswal S&P 500 index fund - 2500 Quant Small Cap Fund- 5000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Banking & Financial Services Fund- 2500. Focus is to continue SIP for longterm

Ans: It's great to see your commitment to investing for the long term. Let's review your current SIP portfolio and discuss if any adjustments are needed to align with your goals.

Evaluating Your SIPs
Your portfolio consists of a mix of equity funds focusing on different market segments. Here's a brief overview of each fund:

Parag Parikh Flexi Cap Fund (Rs. 10,000): Known for its flexible investment approach across market caps and sectors, providing diversification and potential for long-term growth.

Motilal Oswal S&P 500 Index Fund (Rs. 2,500): Provides exposure to the top 500 companies in the US stock market, offering diversification and growth potential in the world's largest economy.

Quant Small Cap Fund (Rs. 5,000): Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

PGIM India Mid Cap Opportunities Fund (Rs. 5,000): Focuses on mid-cap companies with strong growth prospects, offering potential for capital appreciation over the long term.

SBI Banking & Financial Services Fund (Rs. 2,500): Invests in companies operating in the banking and financial services sector, benefiting from the growth potential of the Indian financial industry.

Recommendations for Optimization
Your portfolio is well-diversified across different market segments, which is essential for long-term growth. However, here are a few suggestions to consider for further optimization:

Monitor Performance: Regularly review the performance of each fund and assess whether they continue to meet your investment objectives. Consider replacing underperforming funds or reallocating assets based on changing market conditions and your financial goals.

Assess Risk Tolerance: Ensure that your portfolio's risk level aligns with your risk tolerance and investment horizon. While small-cap and mid-cap funds offer higher growth potential, they also come with increased volatility. Make sure you're comfortable with the level of risk in your portfolio.

Consider International Diversification: While the Motilal Oswal S&P 500 Index Fund provides exposure to the US stock market, you may consider adding more international diversification to your portfolio. Explore options such as global equity funds or international index funds to broaden your investment horizon.

Review Sectoral Exposure: Given your investment in the SBI Banking & Financial Services Fund, be mindful of overexposure to a single sector. Monitor the fund's performance and consider diversifying across sectors to reduce concentration risk.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term growth. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 13, 2024

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Hello Team, I am investing via SIP in axis Small cap 1000 pm, axis bluechip fund direct paln growth 1500pm, Mirae Asset aggreasive fund 1000pm, parag parikh flexi cap 1000pm, canara small cap 2000pm, quant small cap 2.5k pm, PGIM india midcap 1000pm. Please review my funds. Should i need any changes in my SIPs. My view is for 15 years. I am investing since 2019..
Ans: You've built a diversified portfolio covering different market segments, which is a good strategy for long-term growth. Here's a quick review:

Axis Small Cap & Canara Small Cap: You have exposure to small-cap funds which can offer higher growth potential but come with higher volatility. Given your 15-year horizon, these can be suitable, but be prepared for fluctuations.

Axis Bluechip & Mirae Asset Aggressive Fund: These funds provide stability with large-cap and well-diversified equity exposure. They can act as a counterbalance to the volatility of small and mid-cap funds.

Parag Parikh Flexi Cap: A flexible fund that invests across market caps and can provide consistent returns. It offers international diversification which can be beneficial.

Quant Small Cap & PGIM India Midcap: These funds further increase your exposure to mid and small-cap segments. Ensure you're comfortable with the higher risk associated with these categories.

Given your portfolio, it seems well-balanced for long-term growth. However, consider the following suggestions:

Review Fund Performance: Regularly check the performance of your funds against their benchmarks and peers.

Risk Assessment: Ensure you're comfortable with the risk levels, especially with higher allocations to small and mid-cap funds.

Asset Allocation: As you progress, you might want to rebalance your portfolio to maintain desired asset allocation.

New SIPs: Consider adding a large-cap or a diversified equity fund to further diversify your portfolio and reduce risk.

Remember, while these are general guidelines, personal financial planning should be tailored to your specific goals, risk tolerance, and financial situation. It's always advisable to consult with a financial advisor for a comprehensive review and advice tailored to your needs.

..Read more

Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Apr 19, 2024Hindi
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Hi Sir Kindly review my SIP. I have SIP in UTI NIFTY 50 rs 500, SBI EQUITY HYBRID FUND rs 1000, SBI small cap fund Rs 1000, SBI NIFTY 150 MIDCAP FUND rs 1000. Please suggest if any modifications are required.
Ans: Your SIP portfolio reflects a diversified approach across different asset classes and market segments, which is commendable. However, there are a few considerations to keep in mind for potential modifications:

Review Performance: Regularly assess the performance of your SIPs to ensure they are meeting your investment objectives. Evaluate factors such as returns, volatility, and consistency.
Risk Management: Small-cap and mid-cap funds tend to be more volatile compared to large-cap and hybrid funds. Consider your risk tolerance and adjust your allocation accordingly to maintain a balanced portfolio.
Asset Allocation: Assess whether your current allocation aligns with your investment goals and risk profile. It may be beneficial to diversify further by including funds from other fund houses or asset classes like debt or international funds.
Stay Informed: Keep abreast of market trends, economic developments, and fund-specific news to make informed decisions about your investments.
Consult a Certified Financial Planner: Seeking professional advice from a Certified Financial Planner can provide personalized recommendations based on your financial situation, goals, and risk tolerance.
Remember, investment decisions should be based on your individual circumstances and long-term objectives. Regularly reviewing your SIPs and making adjustments when necessary will help ensure your portfolio remains well-positioned to achieve your financial goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 03, 2024Hindi
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Hi Sir Kindly review my SIP . I have SIP in UTI NIFTY 50 index fund of rs 10000, parag Parikh flexi cap fund of rs 5000, bandhan nifty 50 index fund of rs 14000 , quant small cap fund of rs 1000. Please suggest if any modifications are required.
Ans: It's great to see you investing through SIPs, a disciplined approach towards wealth creation. Let's review your portfolio and make some suggestions.

Starting with UTI NIFTY 50 Index Fund, investing in a broad market index like NIFTY 50 can provide exposure to the overall performance of the Indian equity market. It's a good choice for passive investors seeking market returns.

Parag Parikh Flexi Cap Fund offers a diversified portfolio with flexibility to invest across market caps and sectors. It's known for its consistent performance and prudent investment approach.

Bandhan Nifty 50 Index Fund provides exposure to the NIFTY 50 index, similar to UTI NIFTY 50 Index Fund. However, having two funds tracking the same index might lead to overexposure and lack of diversification.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.

Quant Small Cap Fund invests in small-cap stocks, which have the potential for high growth but come with higher volatility and risk. While small-cap funds can be rewarding in the long term, they require patience and a higher risk appetite.

Considering your current portfolio, here are some suggestions:

Diversification: Since you already have exposure to NIFTY 50 index through UTI and Bandhan funds, you might consider reallocating the investment in Bandhan Nifty 50 Index Fund to a different asset class or fund category for better diversification.

Risk Management: Given the volatility associated with small-cap funds, evaluate your risk tolerance and consider whether you're comfortable with the risk-return profile of Quant Small Cap Fund. You may adjust the allocation or switch to a less volatile option if needed.

Review Regularly: Keep an eye on the performance of your funds and review your portfolio periodically. As your financial goals and market conditions evolve, you may need to rebalance your portfolio or make adjustments accordingly.

Seek Professional Advice: Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and goals.

Overall, your portfolio reflects a mix of passive and actively managed funds, providing diversification across market segments. Ensure you stay invested for the long term and maintain a disciplined approach towards your SIPs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6625 Answers  |Ask -

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

Asked by Anonymous - May 09, 2024Hindi
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Hi Sir Kindly review my SIP . I have SIP in UTI NIFTY 50 index fund of rs 10000 pm, parag Parikh flexi cap fund of rs 5000pm, bandhan nifty 50 index fund of rs 14000pm , quant small cap fund of rs 1000pm. Please suggest if any modifications are required.
Ans: Reviewing Your SIP Portfolio
Your SIP portfolio consists of investments in UTI NIFTY 50 Index Fund, Parag Parikh Flexi Cap Fund, Bandhan Nifty 50 Index Fund, and Quant Small Cap Fund. Let's evaluate if any adjustments are necessary for optimal portfolio performance.

UTI NIFTY 50 Index Fund: ?10,000 per month
Investing in an index fund tracking the NIFTY 50 can provide broad market exposure with low expense ratios. However, relying solely on index funds may limit potential returns compared to actively managed funds.

Parag Parikh Flexi Cap Fund: ?5,000 per month
The Parag Parikh Flexi Cap Fund offers flexibility to invest across market caps and sectors, potentially enhancing portfolio diversification and returns. It's a solid choice for long-term growth with its balanced approach.

Bandhan Nifty 50 Index Fund: ?14,000 per month
Allocating a significant portion to another NIFTY 50 index fund may lead to overexposure to large-cap stocks and limit diversification benefits. Consider reassessing the allocation to avoid concentration risk.

Quant Small Cap Fund: ?1,000 per month
Investing in a small-cap fund like Quant Small Cap Fund can provide exposure to high-growth potential companies. However, small-cap stocks tend to be more volatile, so ensure this allocation aligns with your risk tolerance.

Suggestions for Modifications
Diversification: Consider diversifying across asset classes and investment styles to mitigate risk and enhance returns. Adding exposure to international equities or debt funds can provide additional diversification benefits.

Rebalancing: Review your portfolio periodically to rebalance allocations based on market conditions and changing investment objectives. Ensure your asset allocation aligns with your risk tolerance and financial goals.

Expense Ratio: Evaluate the expense ratios of each fund to ensure they are competitive and do not erode your returns over time. Look for low-cost options to optimize your investment efficiency.

Professional Advice: Consult with a Certified Financial Planner to tailor your portfolio to your specific financial situation and goals. They can provide personalized recommendations and ongoing monitoring to maximize returns and manage risk effectively.

Conclusion
While your SIP portfolio shows diversification across different funds, it may benefit from adjustments to optimize returns and manage risk effectively. Consider revisiting your asset allocation and seeking professional advice to ensure your investments align with your long-term financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Hello Madam, i am 38 year married women, having a 15year 1 kid boy ( but my husband not loving me even he is not talking with me from the last 8 years but we r leaving together due to our son, he fulfilled the need with the responsibilities of our home and our son but as wife he is not talking and even not caring to me ,but before 2 years back one married man come to talk with me he is my official colleague and we both attached a lot with each other after some days he proposed me and said that he is loving me many years ago but he thought that i am very Strick person will not response him, but now he is saying that he wants me as a life partner me also every time he treat me like a wife very much caring and loving nature now i introduce him to my family as a friend and family members also very happy with taking to him, we are from 2 year together is it good or what should i do further?
Ans: Dear Ruta,
You want to get into a relationship with a married man? Will that not complicate your already complicated life?
You certainly deserve to be loved and taken care of BUT do not jump towards a married man...you do understand that his priorities will lie with his first family and this will hurt you again and you will feel neglected AGAIN...

What is he planning with his marriage? Does his wife know about your relationship? Is he going to end his marriage and then marry you? These questions need answers and then you can decide for yourself keeping in mind that you need to take of yourself emotionally in this second association.

All the best!
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Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Milind

Milind Vadjikar  |426 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

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Dear Sir, My Age is 59 and investment is as follows: Stock market 1.2 Cr MFI 2.0 Cr Expectied pension from 2026 1,4L per month House : own house Loan liability is zero Responsibility: Marriage of two sons who finished PG My question is " above fund sufficient to take over for me and my wife for next 30 year (assuming life expectancy is 90 Years) Regards Srinivasan
Ans: Hello;

You may invest 20 L in Arbitrage type of mutual fund(low risk) earmarked for marriage of your sons.

Also you may invest 3 Cr into equity savings type mutual fund (moderate risk).

After 3 years it may grow into a sum of 3.89 Cr considering modest return of 9%.

I suggest that you redeem this corpus by paying LTCG(~11 L) and buy an immediate annuity for balance corpus of 3.78 Cr from a life insurance company.

I am not recommending you to do an SWP because for your required monthly income SWP rate will have to be 4.5%+ annually and I ran this on an swp calculator which shows depleted corpus of less then 1 Cr after 30 years.

Considering annuity rate of 6% you may expect to receive monthly payment of 1.89 L(pre-tax).

Seek joint annuity for yourself and your spouse with return of purchase price to your nominees.

Some life insurers offer increasing annuity at fixed intervals to account for inflation.

Also if you shop around and negotiate you may get a better annuity rate.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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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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