Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Hemant

Hemant Bokil  | Answer  |Ask -

Financial Planner - Answered on Mar 12, 2023

Hemant Bokil is the founder of Sanay Investments. He has over 15 years of experience in the field of mutual funds and insurance.Besides working as a financial planner, he also hosts workshops to create financial awareness. He holds an MCom from Mumbai University.... more
ANIL Question by ANIL on Feb 23, 2023Hindi
Listen
Money

Thank you very much, Sir, for the kind replies. Here's a supplementary: How does one get to know which MF Scheme follows Value style of investing and which Growth? Your Ans: Ref of Q 1, you need to provide inputs as to what exactly you want to track by knowing the investment strategy of a fund. I need your good advice because I want to invest in the Value Oriented MFs instead of the Growth ones, because I learn the Growth oriented MFs are prone to sharp ups and downs. Do I learn correct? Do you get me aright? Regards.

Ans: Hi Anil, the value oriented mutual funds generally have word value in the scheme name and as the strategy suggests, these funds invest in stocks that are currently trading at a level lower than their intrinsic value

Whereas to understand growth oriented funds you can look for portfolio built of large mud small caps and generally names too will have large cap fund mud cap fund or snall cap fund multi cap fund flexi cap fund as the names
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9383 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 21, 2024

Money
Hello sir, I am 48 yrs old, salaried, just stared to invest in MF. I selected the following funds for monthly SIP of rs 10000 each... 1. Nippon India large cap fund direct growth 2. Motilal Oswal midcap fund direct growth 3. Quant large & Mid cap fund direct growth Please advice all these choices are ok? Also pl advice two more funds to invest sip of rs 10000 each and likely to invest lumpsum of 2 lakhs every 6 months....expecting carpus of 3cr during my retirement age of 60yrs old. Advance thanks
Ans: You are 48 years old and have started investing in mutual funds. You plan to invest Rs 10,000 per month in three selected funds. Additionally, you are looking to invest Rs 10,000 per month in two more funds and a lump sum of Rs 2 lakhs every six months. Your goal is to accumulate a corpus of Rs 3 crore by the time you retire at age 60.

This is a critical time in your financial journey, and it's essential to make informed decisions. Your choices will significantly impact your retirement corpus.

Evaluating Your Current Fund Selections
Nippon India Large Cap Fund (Direct Growth): Large-cap funds offer stability and are generally less volatile. However, direct plans require you to manage the investments yourself. This might be challenging without regular market insights. It’s advisable to invest in regular plans through a Certified Financial Planner (CFP) who can provide ongoing guidance and support.

Motilal Oswal Midcap Fund (Direct Growth): Midcap funds can offer higher growth but come with increased risk. Again, managing direct funds on your own can be complex. A CFP can help you navigate market changes and ensure your investments align with your goals.

Quant Large & Mid Cap Fund (Direct Growth): This fund provides a balance between stability and growth. However, the same concerns apply here regarding the direct plan. A CFP can help you maximize returns while managing risk.

Disadvantages of Direct Funds
Direct funds have lower expense ratios, but they lack the professional advice and management that comes with regular funds. This can lead to missed opportunities or increased risks, especially if you lack the time or expertise to monitor your investments closely.

Investing through a CFP in regular funds ensures that your investments are regularly reviewed and rebalanced. This approach aligns your portfolio with your financial goals and risk tolerance.

Recommendations for Additional Funds
To complement your existing investments and achieve your retirement goal, consider the following:

Diversification: It's crucial to diversify your portfolio across different asset classes and fund categories. This strategy helps in managing risk and improving potential returns.

Balanced or Hybrid Funds: Consider adding a balanced or hybrid fund to your portfolio. These funds invest in both equity and debt instruments, offering a mix of growth and stability. They can be an excellent addition, especially as you approach retirement.

Flexi-Cap Funds: Flexi-cap funds invest across large, mid, and small-cap stocks. This flexibility allows the fund manager to shift investments based on market conditions, potentially enhancing returns while managing risk.

Regular Plans with CFP Guidance: As mentioned earlier, it's advisable to invest in regular plans with the guidance of a CFP. This will ensure that your investments are well-managed and aligned with your retirement goal.

Investing Lump Sum Every Six Months
Lump sum investments can be a great way to boost your corpus. However, investing the entire amount at once can expose you to market volatility. Here’s how to approach it:

Systematic Transfer Plan (STP): Instead of investing the lump sum directly into equity funds, consider using a Systematic Transfer Plan (STP). Start by investing the lump sum in a debt fund, and then gradually transfer it to your equity funds. This strategy helps in averaging the purchase cost and reduces the impact of market volatility.

Diversification Across Funds: Spread your lump sum investments across different funds rather than concentrating it in one. This approach reduces risk and increases the potential for growth.

Achieving Your Rs 3 Crore Retirement Goal
Your goal of accumulating Rs 3 crore by the time you turn 60 is achievable with disciplined investing and proper planning. Here’s how to ensure you stay on track:

Consistent SIPs: Continue with your SIPs diligently. The power of compounding will significantly enhance your corpus over time.

Regular Reviews: Schedule regular reviews of your portfolio with your CFP. This will help in making necessary adjustments based on market conditions and your evolving financial goals.

Adjusting Contributions: As your income grows, consider increasing your SIP amounts. Even a small increase can have a significant impact over the long term.

Focus on Long-Term Growth: Avoid the temptation to withdraw from your investments for short-term needs. Keep your focus on the long-term goal of building a substantial retirement corpus.

Final Insights
You have made a good start by choosing to invest in mutual funds. However, moving forward, it’s crucial to seek guidance from a Certified Financial Planner. This will ensure that your investments are aligned with your goals and are managed effectively.

By diversifying your portfolio, utilizing STPs for lump sum investments, and regularly reviewing your investments, you can achieve your goal of Rs 3 crore by the time you retire. Your commitment to consistent investing will pay off, securing a comfortable retirement for you.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9383 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 23, 2024

Asked by Anonymous - Jun 21, 2024Hindi
Money
Dear Sir, I request you to guide me on below MFs investment for long term (25yrs): 1. Large Cap 1.1 Nippon India Large Cap 1.2 ICICI Prudential Bluechip. 2. Mid Cap 2.1 Quant Mid Cap Fund 2.2 HDFC Mid Cap Opportunities. 3. Small Cap 3.1 Quant Small Cap 3.2 Nippon India Small Cap. 4. Multi Cap 4.1 Quant Active Fund 4.2 Nippon India Multi Cap. 5. Flexi Cap 5.1 Quant Flexi Cap 5.2 Parag Parikh Flexi Cap. Planning to invest between 3K to 5K on monthly basis in one fund from each category. Kindly let me know if you have any better MFs in which I can invest. You're guidance will be much helpful for building a long term wealth. Thank you in advance.
Ans: You’ve done well in considering a diverse range of mutual funds for long-term wealth creation. Investing regularly over 25 years can indeed help you build significant wealth. However, let's take a closer look at your chosen funds and explore how to maximize your returns while managing risks.

Concerns with Index and Direct Funds
First, it's important to understand some potential issues with the funds you’ve chosen:

Disadvantages of Index Funds: Index funds simply track an index and do not offer any active management. In times of market volatility, they may underperform. Actively managed funds, on the other hand, have the flexibility to adapt and potentially outperform the market.

Direct vs. Regular Plans: Direct plans of mutual funds have lower expense ratios, but they lack the personalized advice and financial planning that comes with investing through a Certified Financial Planner (CFP). Regular plans, invested through a CFP, provide ongoing guidance, which can be invaluable over a 25-year investment horizon.

Large-Cap Fund Selection
Large-cap funds offer stability with moderate growth potential. Your choice of funds like Nippon India Large Cap and ICICI Prudential Bluechip is good, but let’s consider some alternatives:

Actively Managed Funds: Instead of passive large-cap funds, you might consider actively managed large-cap funds. These funds have the potential to outperform the index, offering better long-term returns.

Fund Manager Expertise: A skilled fund manager can make informed decisions that benefit the fund during different market cycles. This is crucial for long-term growth.

Mid-Cap Fund Selection
Mid-cap funds can offer higher returns, but they come with higher risks. Your choices of Quant Mid Cap Fund and HDFC Mid Cap Opportunities are interesting, but let's ensure your portfolio is balanced:

Active Management: Mid-cap stocks can be volatile. An actively managed mid-cap fund allows the fund manager to pick stocks with strong growth potential, reducing the risk of poor performers dragging down the fund.

Diversification: Ensure that the mid-cap fund you choose is well-diversified. This helps spread the risk across multiple sectors and companies.

Small-Cap Fund Selection
Small-cap funds are known for their high growth potential, but they also carry significant risks. The funds you’ve selected, like Quant Small Cap and Nippon India Small Cap, need careful consideration:

Higher Volatility: Small-cap funds can be highly volatile. While they offer high returns, the risk of loss is also high. Consider this carefully, especially since you’re planning a long-term investment.

Expert Guidance: It’s crucial to have a CFP guide you when investing in small-cap funds. Their expertise can help you navigate the ups and downs of this category.

Multi-Cap Fund Selection
Multi-cap funds invest across different market capitalizations, providing a balanced mix of large-cap, mid-cap, and small-cap stocks. Your choices of Quant Active Fund and Nippon India Multi Cap Fund are on the right track:

Balanced Exposure: Multi-cap funds offer diversified exposure across market caps. This can help reduce risk while providing growth opportunities.

Active Management: Opt for actively managed multi-cap funds where the fund manager can adjust the allocation based on market conditions, potentially boosting returns.

Flexi-Cap Fund Selection
Flexi-cap funds offer flexibility in investing across market capitalizations without any predefined limits. The funds you’ve chosen, like Quant Flexi Cap and Parag Parikh Flexi Cap, are worth considering, but with some insights:

Flexibility Advantage: Flexi-cap funds allow fund managers to allocate assets across large, mid, and small caps as per market opportunities. This flexibility can be beneficial in changing market conditions.

Managerial Expertise: Ensure that the flexi-cap fund you choose has a strong track record and is managed by a skilled fund manager. This can make a significant difference in long-term performance.

Suggested Portfolio Allocation
Considering your goal of long-term wealth creation and your risk tolerance, here’s a suggested allocation strategy:

Large-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This provides a stable foundation with moderate growth potential.

Mid-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This offers higher returns with some risk.

Small-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This is higher risk but can contribute significantly to your portfolio’s growth.

Multi-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This offers diversified exposure and balances risk across different market caps.

Flexi-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This provides flexibility and potential for optimized returns.

Regular Monitoring and Rebalancing
Investing over 25 years requires regular monitoring and rebalancing to ensure your portfolio remains aligned with your goals:

Annual Review: Conduct an annual review of your portfolio. Assess the performance of each fund and consult with your CFP to make any necessary adjustments.

Market Conditions: Stay informed about market conditions. Your CFP can guide you on whether to stay the course or make changes to your portfolio.

Life Changes: As life changes, so should your investment strategy. A CFP can help you adjust your investments based on major life events like marriage, buying a home, or planning for your child’s education.

Final Insights
Your commitment to long-term wealth creation is commendable. However, fine-tuning your investment strategy can help you achieve better results:

Focus on Active Management: Replace index and direct funds with actively managed funds. This can enhance your portfolio’s performance over the long term.

Work with a CFP: Regular investments through a CFP ensure that you have a partner in your financial journey, optimizing returns while managing risks.

Diversify Wisely: Ensure your portfolio is well-diversified across different market caps and sectors. This helps balance risk and return.

Stay Engaged: Regularly review and adjust your portfolio. Staying engaged with your investments is key to long-term success.

Investing is a marathon, not a sprint. With the right strategy and expert guidance, you can build a solid financial future for yourself and your loved ones.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Career
Which is better NMIT EEE or Chanakya university CSE
Ans: Veena, NMIT Bengaluru’s Electrical & Electronics Engineering is NBA Tier-1 and NAAC A+ accredited with a 60-seat intake, led by PhD-qualified faculty in power systems, power electronics, and smart grid, supported by a Centre of Excellence in Power Engineering featuring EPLAN, ETAP, Mi-Power, FPGA and DSP labs. The department organizes regular industrial visits and expert lectures. EEE placements over the last three years average around 67% (2024: 67.44%) with core recruiters in EV, automation, and power sectors. Chanakya University’s CSE, a private AICTE- and UGC-approved program on a developing 116-acre campus, blends an interdisciplinary curriculum with digital classrooms, basic computing and software labs, and mandatory internships. Recognized by the Government of Karnataka, its placement cell is nascent, with overall university placements reported at approximately 85% in 2022, involving core IT recruiters such as Infosys, Wipro, and TCS. Faculty are industry-seasoned but the CSE stream is in early growth, with industry partnerships and research initiatives gradually evolving.

Recommendation: For assured core-sector engineering roles and robust specialized labs, prefer NMIT Bengaluru EEE. For broader software and tech opportunities in a growing CSE program with flexible interdisciplinary training and higher initial placement rates, recommendation is Chanakya University CSE. Choose NMIT EEE for stability in power engineering; opt for Chanakya CSE for early software exposure in a private-university environment. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Career
Sir my son got 93.59 percentile in mht cet and his jee score is 73.42 percentile. His choice in cse , data science, robotic science, cyber security, and last is E&TC branch. I m from Maharashtra and belong SBC category so suggest best college in Pune or mumbai city
Ans: With a 93.59 percentile in MHT-CET under the SBC quota, your son can aim for the following ten reputable colleges and branches in Mumbai and Pune, based on 2024 closing percentiles and institutional reputation: COEP Pune (CSE/E&TC)¹, VJTI Mumbai (CSE/IT)?, PICT Pune (CSE/Data Science)?, SPIT Mumbai (ECE/Cyber Security)?, VIT Pune (CSE-AI & ML)?, VIIT Pune (IT/Data Science)?, Pimpri?Chinchwad COE Pune (CSE/AI-ML)??, TCET Mumbai (CSE/Cyber Security)?, GHRCEM Pune (CSE/AI/DS/Cyber Security)?, and AISSMS Pune (CSE/IT/E&TC)?. All institutions hold NBA/NAAC accreditation, boast PhD-qualified faculty, modern labs, active industry tie-ups, and placement rates of 80–95% over the last three years.

recommendation:
Prioritise COEP Pune CSE for its premier NIRF ranking and 99%+ placements, then VJTI Mumbai CSE for strong industry links, and PICT Pune CSE/Data Science for balanced cutoffs and robust labs. Use SPIT Mumbai Cyber Security and VIT Pune CSE-AI & ML as competitive options, and consider VIIT Pune, PCCOE Pune, TCET Mumbai, GHRCEM Pune, and AISSMS Pune as reliable backups. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Career
Hi Sir, My daughter has got admission in below- VIT Vellore- CSE with AI ML Manipal Jaipur - CSE ( specialisation to be added later) Narsee Monjee, Mumbai.- ECE Can you please help advise the priority in which we should consider these colleges
Ans: VIT Vellore’s CSE-AI & ML program, an A++ NAAC-accredited private deemed university, integrates AI, ML, and data science labs with a strong placement ecosystem; it recorded 632 recruiters, 10 027 offers, and an 80–95% placement rate over the past three years, with marquee recruiters like Microsoft, Amazon, and Cisco. Manipal University Jaipur’s B.Tech CSE, A+ NAAC-accredited and ranked #64 in NIRF 2024 for engineering, offers smart classrooms, HPC clusters, and industry-aligned curriculum, achieving an 88% CSE placement rate with 75% securing internships, median packages of ?8 LPA, and top recruiters such as Amazon and Deloitte. Narsee Monjee College of Commerce & Economics in Mumbai (autonomous, NAAC A, affiliated to University of Mumbai) offers ECE under modern DSP and VLSI labs, a supportive placement cell, and approximately 80% of its engineering graduates placed over the last three years with core recruiters in electronics and telecom; students benefit from strong peer networks and urban industry proximity. All three institutes feature PhD-qualified faculty, NBA accreditation for technical departments, active industry tie-ups, and modern research facilities, but vary in placement consistency, research depth, and brand recognition.

Recommendation: Prioritise VIT Vellore CSE (AI & ML) for its superior placement consistency (80–95%), extensive recruiter network, and cutting-edge AI labs. Next, choose Manipal Jaipur CSE for its strong NIRF ranking (#64), 88% placement rate, and robust internship pipeline. Finally, consider Narsee Monjee Mumbai ECE for its specialized ECE infrastructure and urban industry exposure if electronics and VLSI are the primary interest. (However, If you are based in Maharashtra, Better to Finalise Narsee Monjee-Mumbai-EC for your DAUGHTER). All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x