Thank you so much for reviewing. I am thinking to add one Quant fund. Confused between Quant midcap/ quant small cap / quant psu fund / quant infrastructure fund.

Ans: Hello and thanks for writing to me. The funds you plan to invest in are good funds and you can invest in them.

You need to consider your own risk tolerances and goals before beginning investments. Please elaborate on them to help me recommend schemes which may be more suited to you.

Ans: Currently, the asset allocation of the portfolio is 100%. Any good portfolio should diversify to provide support during uncertainties. Portfolio is also overly allocated towards a particular AMC (Quant), which increases the concentration risk of the portfolio. Also avoid two or more funds of one category.

All the funds are well positioned. Nippon India growth fund seems better than Quant Mid Cap.

Apart from deduction benefits, ELSS is better investment option from return perspective and amogst its peers, Quant Tax Plan has delivered decent returns.

Navi Nifty Bank Index is a sectoral fund. A sectoral category fund majorly faces three drawbacks i) inconsistent returns, ii) limited exposure and iii) incomplete replication of index portfolio. Instead of this, Sensex and Nifty index are better option having exposure of overall market

Ans: Given your age and risk appetite, investing in mid-cap and small-cap funds can offer growth potential over the long term. However, it's essential to consider factors such as fund performance, investment strategy, and risk management before making a decision.
Quant Mutual Fund offers several options across different categories. Here's a brief overview of each option you mentioned:
1. Quant Mid Cap Fund: This fund primarily invests in mid-cap stocks, which have the potential for high growth but also come with increased risk. Mid-cap funds are suitable for investors with a higher risk appetite and a long-term investment horizon.
2. Quant Small Cap Fund: Small-cap funds invest in stocks of small-sized companies, which have the potential for significant growth but are also more volatile and risky. Investors with a higher risk tolerance and a longer investment horizon may consider investing in small-cap funds.
3. Quant Infrastructure Fund: This fund focuses on investing in companies operating in the infrastructure sector, such as construction, energy, and utilities. Infrastructure funds can provide exposure to a specific sector but may be more volatile and cyclical.
4. Quant PSU Fund: PSU (Public Sector Undertaking) funds invest in stocks of government-owned companies, which are known for stability and steady dividends. These funds may offer a defensive investment option for investors seeking lower risk exposure.
Before investing in any Quant Mutual Fund, it's crucial to review the fund's track record, investment objective, portfolio composition, and expense ratio. Additionally, consider consulting with a Certified Financial Planner to ensure the fund aligns with your overall investment strategy and financial goals.
Remember, while mid-cap and small-cap funds offer growth potential, they also come with higher risk. Ensure you have a diversified portfolio and a long-term investment horizon to ride out market fluctuations.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have invested in a small-cap fund and an absolute return fund. Understanding their potential, risks, and suitability is important.

Performance and Risk of Small-Cap Funds
Small-cap funds invest in companies with high growth potential.

These funds can give high returns but are highly volatile.

Market downturns can lead to significant losses in the short term.

Staying invested for at least 7-10 years is ideal.

Avoid additional lump sum investments if your exposure is already high.

Consider a systematic investment approach for future allocations.

Understanding Absolute Return Funds
Absolute return funds aim to generate positive returns, irrespective of market conditions.

These funds use a mix of equities, debt, and other asset classes.

They focus on stability rather than high growth.

Returns depend on the fund manager’s strategy.

Long-term consistency is key to evaluating performance.

Assessing Your Investment Strategy
Review your overall asset allocation before making further decisions.

If small-cap exposure is above 20% of equity holdings, avoid increasing it.

Keep liquidity needs in mind, as small-cap funds can be volatile.

Compare your absolute return fund’s performance with similar funds.

If underperforming consistently, consider switching to better-managed funds.

Taxation Considerations
Long-term capital gains (LTCG) above Rs 1.25 lakh in equity funds are taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20%.

If withdrawing, check tax implications before redeeming.

Final Insights
Small-cap funds need patience and long-term commitment.

Absolute return funds offer stability but need regular performance reviews.

Maintain a balanced portfolio with equity, debt, and liquid assets.

If unsure, consult a Certified Financial Planner for personalised advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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