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Ulhas

Ulhas Joshi  | Answer  |Ask -

Mutual Fund Expert - Answered on Dec 14, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Asked by Anonymous - Dec 14, 2023Hindi
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Hi Ulhas, I am investing 18k through SIP in the following Funds. 3k-Quant small cap, 3k-Nippon Small cap, 2k-HSBC Foccused fund, 2K-Quant Multi Asset, 3k-Tata Digital India fund, 2k-Axis ELSS Tax Saver, 3k-Aditya Birla sun life Liquid Fund. All Direct Funds. Investment Horizon - 15 to 20 Years. Goal - Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.

Ans: Hello & thanks for writing to me.

I notice that you are investing in ABSL Liquid Fund. Liquid funds are debt investments that invest in debt & money market securities expiring in 91 days. This SIP is not in line with your objective of long term wealth creation. You can consider stopping SIP in this fund, redeem the investment in the fund & invest in other equity schemes.

The other schemes you invest in are good schemes and you may continue your SIP's in those schemes. Note that periodic rebalancing is essential to ensure you are on track to achieve your goals.
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  |8332 Answers  |Ask -

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

Asked by Anonymous - Mar 24, 2024Hindi
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Hi sir,I am 40 years old, my goal is retirement with 5 cr. I am investing 25k through SIP in the following Funds. 5k- icici pru bharat 23fof 5k-motilal oswal mid, 5K-Quant large and mid, 5k-Nippon Small cap 5k-Quant small cap, All Direct Funds. Investment Horizon - 20 to 22 Years. Goal -please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.
Ans: Based on your investment horizon, risk appetite, and goal of accumulating 5 crores for retirement over the next 20 to 22 years, let's evaluate your current mutual fund portfolio:

ICICI Prudential Bharat 22 FOF: This fund aims to invest in a diversified portfolio of equity and equity-related securities of companies participating in the growth of Indian economy, and also in units of Bharat 22 ETF. As it focuses on large-cap and well-established companies, it can provide stability to your portfolio. However, since it's a fund of funds (FOF), it may have slightly higher expenses compared to regular equity funds.

Motilal Oswal Midcap 30 Fund: This fund primarily invests in mid-cap stocks, which have the potential for high growth but also come with higher volatility compared to large-cap stocks. Given your high risk appetite, this fund can be suitable for your portfolio as it aims to capture the growth potential of mid-sized companies.

Quant Large and Mid Cap Fund: This fund follows a quantitative investment approach, which uses mathematical models to select stocks based on predefined criteria. While quantitative strategies can offer a systematic approach to investing, it's essential to assess the fund's track record and performance consistency over time.

Nippon India Small Cap Fund: Investing in small-cap companies can provide significant growth opportunities, but it also comes with higher risk and volatility. Given your risk appetite, allocating a portion of your portfolio to small-cap funds can be suitable for long-term wealth creation, provided you can tolerate the associated volatility.

Quant Small Cap Fund: Similar to Quant Large and Mid Cap Fund, this fund follows a quantitative approach to investing but focuses on small-cap stocks. As with any small-cap fund, be prepared for higher volatility and fluctuations in returns.

Considering your high risk appetite and long investment horizon, your current portfolio appears aligned with your goals. However, it's essential to regularly review your investments and monitor the performance of your funds. If any fund consistently underperforms or deviates from its investment mandate, consider replacing it with a better-performing alternative.

Additionally, since you have a long investment horizon, you can consider increasing your SIP amounts periodically to benefit from the power of compounding and accelerate wealth accumulation. As always, consult with a financial advisor to ensure your investment strategy remains appropriate based on your evolving financial circumstances and goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |8332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

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Hi sir,I am 40 years old, my goal is retirement with 5 cr. I am investing 25k through SIP in the following Funds. 5k- icici pru bharat 23fof 5k-motilal oswal mid, 5K-Quant large and mid, 5k-Nippon Small cap 5k-Quant small cap, All Direct Funds. Investment Horizon - 20 to 22 Years. Goal -please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.
Ans: Looks like you've got a good head start on your retirement savings plan! It's great that you're investing consistently through SIPs and have a long investment horizon. Let's break down your portfolio:
Good Diversification: Having a mix of funds across large-cap, mid-cap, and small-cap captures different risk-reward opportunities. This is a good approach for building wealth over the long term.
High Risk Appetite: Your fund selection indicates a high-risk appetite. This can potentially lead to higher returns, but also means your investments can experience more ups and downs along the way.
Consider Portfolio Review: While a general overview looks promising, a more in-depth analysis might be helpful. A Certified Financial Planner (CFP) can assess your individual risk tolerance, investment goals, and review your specific fund choices to ensure they align with your overall plan.
Staying the Course: Remember, market fluctuations are normal. Don't panic and make impulsive decisions based on short-term dips. If you have a long-term view (20-22 years) and stay invested, your SIPs can help you ride out market volatility.
Keep an Eye on It: Periodic reviews are important. Markets and your financial goals can evolve over time. A CFP can help you monitor your portfolio and make adjustments as needed.


There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Overall, you're on the right track! Keep up the good work!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Hi sir,I am 40 years old, my goal is retirement with 5 cr. I am investing 25k through SIP in the following Funds. 5k- icici pru bharat 22fof 5k-motilal oswal mid, 5K-Quant large and mid, 5k-Nippon Small cap 5k-Quant small cap, All Direct Funds. Investment Horizon - 20 to 22 Years. Goal -please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.
Ans: Your investment approach demonstrates a proactive mindset towards achieving your retirement goal. With a high-risk appetite and a long investment horizon of 20 to 22 years, you've chosen funds that align with your objectives.

Your portfolio consists of a mix of funds across various market caps, providing diversification and potential for growth. However, it's essential to periodically review your investments to ensure they remain aligned with your goals and market conditions.

Given your high-risk appetite, the funds you've selected appear suitable for wealth creation over the long term. However, consider monitoring their performance regularly and adjusting allocations if needed. Additionally, stay informed about economic and market trends that could impact your investments.

As you progress towards your retirement goal, you may consider rebalancing your portfolio periodically to maintain an optimal mix of assets. Consulting with a Certified Financial Planner can provide valuable insights and guidance tailored to your specific circumstances.

Overall, your proactive approach to investing and commitment to long-term wealth creation are commendable. By staying disciplined and informed, you're on track to achieve your retirement goal of 5 crores. Keep nurturing your investments, and they're likely to flourish over the years ahead.

..Read more

Ramalingam

Ramalingam Kalirajan  |8332 Answers  |Ask -

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

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Money
Hi sir,I am 40 years old, my goal is retirement with 5 cr. I am investing 25k through SIP in the following Funds. 5k- icici pru bharat 23fof 5k-motilal oswal mid, 5K-Quant large and mid, 5k-Nippon Small cap 5k-Quant small cap, All Direct Funds. Investment Horizon - 20 to 22 Years. Goal -please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds.
Ans: Portfolio Review and Recommendations for Wealth Creation
Overview of Current Investments
Your portfolio consists of a monthly SIP of ?25,000 distributed as follows:

?5,000 in ICICI Prudential Bharat 23 FoF
?5,000 in Motilal Oswal Midcap Fund
?5,000 in Quant Large and Mid Cap Fund
?5,000 in Nippon Small Cap Fund
?5,000 in Quant Small Cap Fund
You have a high-risk appetite and a 20 to 22-year investment horizon with a goal of creating a retirement corpus of ?5 crores.

Compliments on Your Investment Strategy
Your disciplined approach to investing through SIPs is commendable. Consistency in SIPs, especially in equity funds, aligns well with your high-risk appetite and long-term horizon. This strategy helps in rupee cost averaging and compounding returns over time.

Analytical Review of Your Portfolio
ICICI Prudential Bharat 23 FoF:

This fund focuses on sectors highlighted in the Bharat 23 theme.
While thematic funds can offer high returns, they come with concentrated risks.
Motilal Oswal Midcap Fund:

Midcap funds can provide significant growth over the long term.
They are suitable for investors with a high-risk appetite due to higher volatility.
Quant Large and Mid Cap Fund:

This fund offers a balanced exposure to large-cap and mid-cap stocks.
It provides a good blend of stability and growth.
Nippon Small Cap Fund:

Small cap funds can generate high returns but come with higher risks.
They are more volatile compared to large and mid-cap funds.
Quant Small Cap Fund:

Similar to the Nippon Small Cap Fund, this fund focuses on high-growth small-cap companies.
Diversifying within the small cap segment may not be necessary.
Recommendations for Wealth Creation
Diversification:

Your portfolio is heavily tilted towards small and mid-cap funds.
Adding a large-cap fund or a diversified equity fund can provide stability.
Rebalance Sectoral/Thematic Exposure:

The ICICI Prudential Bharat 23 FoF is thematic.
Consider reducing exposure if the theme does not align with your overall strategy.
Consolidate Small Cap Investments:

Holding two small cap funds may not be necessary.
You can consolidate into one fund to avoid overlap and simplify management.
Consider Actively Managed Funds:

Direct funds have lower expense ratios but require more monitoring.
Actively managed funds can offer professional management and potential for higher returns.
Steps to Achieve ?5 Crores
Regular Review and Adjustments:

Periodically review your portfolio and make adjustments based on performance and market conditions.
Increase SIP Amount:

Gradually increase your SIP amount as your income grows.
This can significantly boost your corpus over the long term.
Emergency Fund and Insurance:

Ensure you have an emergency fund and adequate health and life insurance.
This protects your investments and provides peace of mind.
Stay Invested:

Market volatility is inevitable.
Staying invested and not reacting to short-term market fluctuations is crucial.
Conclusion
Your current portfolio is on the right track for wealth creation given your high-risk appetite and long-term horizon. However, some adjustments can enhance stability and growth potential. Diversifying across different market caps and sectors will help in balancing risk and returns. Keep increasing your SIPs and reviewing your portfolio regularly to stay aligned with your goals.

Your disciplined investment approach and thoughtful planning are commendable. With consistent efforts and regular reviews, you are well on your way to achieving your retirement goal of ?5 crores.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 2025

Asked by Anonymous - May 11, 2025
Money
Sir, i have an outstanding home loan of 4.27 lakhs. But, my job prospects are unsure. I have a job offer of prob 25000/- month and another which pays 20000/-. I lost my job this month. I had it for the past two years. I have a short fall of 10000/- this month to pay this month's EMI. Pls advise what i can do for this month and close my home loan, as soon as possible.
Ans: I understand how stressful this can feel. You're being responsible by asking for advice early. That’s very good.

Let me help you with a clear, step-by-step action plan — both for this month’s EMI issue and to close your home loan early, without burden.

Immediate Steps for This Month's EMI Shortfall
You have a Rs.10,000 shortfall for this month's EMI.

 

First, don’t ignore the EMI due date.

 

Late EMI can impact your credit score.

 

It may lead to penalty or default mark.

 

Call or visit your bank and explain the situation openly.

 

Request a 1-month moratorium or rescheduling of EMI.

 

Some banks allow EMI holiday for 1–2 months.

 

You need to request it before missing payment.

 

If you have any fixed deposits, RD, or gold, you can use or pledge them.

 

Gold loan is fast, safe, and cheaper than personal loan.

 

Avoid credit card debt or personal loan at high interest.

 

Borrow from close family if possible, with clear repayment promise.

 

Keep receipts of any delayed EMI or late charge.

 

Job Offers: Pick with Long-Term Lens
You have two offers: Rs.25,000 and Rs.20,000.

 

Choose the one with more job security and stability.

 

If Rs.25,000 job is risky, then Rs.20,000 with more stability is better.

 

You can’t afford another break in income.

 

Ask the employer clearly about probation, confirmation, etc.

 

Monthly Budget Rework: Cut and Save
For now, cut all non-essential expenses.

 

Rent, groceries, loan EMI, and utility bills are priority.

 

Pause shopping, travel, and eating out.

 

This will help you save Rs.3000–Rs.5000 per month.

 

That money can go towards EMI or home loan closure.

 

Closing the Home Loan Early: Action Plan
Your loan balance: Rs.4.27 lakhs
You want to close it fast. That is a wise goal.

 

Let’s build a loan closure plan in 4 simple steps.

 

1. Emergency Buffer First
Keep at least Rs.20,000–Rs.30,000 cash or liquid fund as emergency.

 

This is for any gap in salary, medical need, or job delay.

 

Don’t use this money for loan closure now.

 

2. Choose EMI + Extra Payment Strategy
Continue regular EMI without delay.

 

On top of EMI, start small part-payments monthly or quarterly.

 

Even Rs.3,000 extra per month brings down interest fast.

 

No need for full pre-closure immediately.

 

Small consistent part-payments give same benefit over 1–2 years.

 

3. Any Bonuses or One-Time Inflows
If you get bonus, gift, or freelancing income, direct it fully to loan.

 

Don’t spend on purchases till loan is cleared.

 

Each Rs.10,000 prepayment will reduce interest and shorten loan term.

 

4. Track Loan Balance Every 3 Months
Visit bank or use online account.

 

Get latest principal balance.

 

After every extra payment, ensure it reflects as principal reduction.

 

Ask for revised amortisation schedule if needed.

 

Should You Use Investment or Insurance Money?
Let me clarify with care.

 

If you have any LIC endowment or ULIP policy, check surrender value.

 

These give very low return and poor insurance.

 

If they are investment-linked, not pure protection, consider surrendering.

 

Reinvest that amount wisely to grow or reduce home loan.

 

But don’t touch term insurance or health insurance.

 

They are protection tools, not savings.

 

Building Your Income Stability
You just lost your job, but you are actively taking offers. Well done.

 

Also explore freelancing, tuition, weekend work.

 

This can help close your Rs.10,000 monthly gap faster.

 

Talk to old colleagues or clients for referral work.

 

Mental Peace and Confidence
Financial stress can feel heavy. But your approach is strong.

 

You’re solving things early, without panic. That’s admirable.

 

Once you stabilise income for 3–4 months, increase loan prepayment.

 

Closing home loan early gives mental peace and better credit score.

 

That opens better financial doors in future.

 

Final Insights
Inform bank early about this month’s EMI issue.

 

Don’t delay communication or EMI. That’s very important.

 

Use gold loan or family support for this month, if needed.

 

Select stable job over higher salary.

 

Keep Rs.20,000–Rs.30,000 for emergency fund.

 

Start part-prepayments monthly or quarterly.

 

Track loan balance and shorten term over next 12–18 months.

 

Surrender poor-performing ULIP or LIC plans and redirect to loan.

 

Avoid high-cost personal loans or credit card EMI.

 

Stay emotionally strong and focused.

 

This difficult time will pass. Your discipline will help you come out stronger.

 

Best Regards,
 
K. Ramalingam, MBA, CFP,
 
Chief Financial Planner,
 
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |8332 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 2025

Asked by Anonymous - May 12, 2025
Money
I want to invest 15 lakhs for a period of approx ten years
Ans: Investing Rs.15 lakhs for 10 years is a wise move. You’re planning for long-term growth, and that shows financial maturity.

Understanding Your Investment Objective
You are investing for a 10-year time horizon.

 

Your goal could be wealth creation, retirement, child’s education or any long-term need.

 

This long-term window gives you good room for growth-based investing.

 

You are not chasing short-term profits. That is very good.

 

It shows patience and clarity. Both are key for long-term success.

 

Deciding Your Investment Style
Rs.15 lakhs is a significant amount.

 

Let’s divide it smartly into different categories.

 

We won’t go with one single product.

 

Instead, we will diversify for safety and growth.

 

We will use mutual funds, small savings schemes, and emergency allocation.

 

This approach reduces risk and balances return.

 

Why Mutual Funds Are a Core Part
Mutual funds offer professional management.

 

They spread your money across many companies.

 

That helps reduce single-company risk.

 

With mutual funds, your money gets expert handling.

 

Over ten years, this becomes very valuable.

 

You get compounding growth and liquidity also.

 

Active Funds vs Index Funds: Which is Better?
Index funds copy market indices.

 

They don’t try to beat the market.

 

That means average returns only.

 

In volatile markets, index funds give no protection.

 

They blindly follow market up and down.

 

Actively managed funds adjust the portfolio wisely.

 

The fund manager can reduce risk in falling markets.

 

They also select stronger companies for better results.

 

So, active funds offer better decision-making.

 

For long-term wealth, they are more dependable.

 

Why Regular Funds Are Better Than Direct Funds
Direct funds may look cheaper, but come with hidden risks.

 

No advisor is available for support in direct funds.

 

You will manage it fully on your own.

 

That can lead to wrong fund choices.

 

Most investors don’t track funds regularly.

 

You may miss changes in performance or rating.

 

Regular funds come through MFDs with CFP expertise.

 

You get regular monitoring and rebalancing.

 

That improves fund performance and suits your goals.

 

Hand-holding by a Certified Financial Planner avoids costly errors.

 

Long-term success needs guidance, not guesswork.

 

Taxation Rules You Must Know
For equity mutual funds, LTCG above Rs.1.25 lakh taxed at 12.5%.

 

STCG is taxed at 20%.

 

For debt mutual funds, gains are taxed as per your tax slab.

 

This means tax planning becomes very important.

 

Your Certified Financial Planner will structure funds to reduce tax burden.

 

Also, investing via Systematic Transfer Plan (STP) helps lower STCG tax impact.

 

Emergency Fund: Your Safety Net
Before investing the full Rs.15 lakhs, keep some for emergency.

 

At least Rs.1.5 to 2 lakhs should stay in liquid fund or savings.

 

This helps during job loss or urgent medical need.

 

It avoids breaking your 10-year investments midway.

 

Asset Allocation Strategy: Balanced and Wise
Let’s allocate Rs.15 lakhs in smart buckets.

 

Around 70% to equity mutual funds.

 

20% to debt mutual funds or small savings.

 

10% for emergency and ultra short-term needs.

 

This keeps your returns high and your risks low.

 

Type of Funds to Consider
For equity, you may go for large-cap and flexi-cap mutual funds.

 

Multi-cap funds and focused equity funds are also good.

 

These categories offer growth with managed risk.

 

For debt part, go for dynamic bond or short-duration funds.

 

They offer better returns than fixed deposits.

 

They also provide some stability during equity volatility.

 

SIP and STP: Smart Ways to Enter Market
Don't invest full Rs.15 lakhs in one go.

 

Use Systematic Transfer Plan (STP) from a liquid fund.

 

Shift monthly into equity funds over 6–12 months.

 

This reduces risk of market timing.

 

You will enter at different levels and average cost.

 

SIPs are also good if investing from monthly income.

 

Monitoring and Review: Important for 10-Year Goals
Investments are not one-time work.

 

Review every 6 months with your Certified Financial Planner.

 

Rebalance if fund underperforms or if your goals change.

 

Stay updated on fund rating, portfolio and expense ratio.

 

Insurance Check: Protect Before You Grow
Before investing, make sure you have term insurance.

 

Health insurance is also very important.

 

Don't mix insurance with investment.

 

If you hold ULIPs or endowment policies, review them now.

 

Most likely they give poor returns.

 

If they are not 100% protection based, consider surrendering them.

 

Reinvest that amount in mutual funds for better wealth creation.

 

Goal-Based Planning: Brings Clarity
Assign every portion of your Rs.15 lakh to a goal.

 

Maybe Rs.5 lakh for child education.

 

Rs.7 lakh for your retirement fund.

 

Rs.3 lakh for house renovation or car after 10 years.

 

This helps track progress clearly.

 

You feel more committed to staying invested.

 

Emotional Discipline Is Key
Don’t panic when markets fall.

 

Stay focused on your 10-year goal.

 

Avoid frequent switching between funds.

 

Ups and downs are part of market behaviour.

 

Long-term investors are always rewarded.

 

Role of a Certified Financial Planner
Helps create custom portfolio for your risk level.

 

Gives unbiased fund recommendations.

 

Tracks tax laws and market changes for you.

 

Keeps you on track with timely reviews.

 

Acts like a health doctor for your money life.

 

You avoid costly mistakes and missed opportunities.

 

Final Insights
Rs.15 lakhs invested wisely can create serious wealth in 10 years.

 

Your focus on long-term is very appreciable.

 

Use mutual funds as the main wealth-building tool.

 

Stay away from direct and index funds.

 

Let a CFP guide your journey with logic and planning.

 

Reinvesting surrender value of poor insurance plans also helps.

 

Ensure your family is protected with term and health insurance.

 

Review your progress often but don’t panic during market dips.

 

Stick to your plan, trust the process, and allow time to work for you.

 

Wealth creation is a marathon, not a sprint.

 

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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