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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on May 18, 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
Mazhar Question by Mazhar on Mar 28, 2023Hindi
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What is your view of Tata Ethical fund is it a good one?

Ans: Hi Mazhar, thanks for writing to me. You can consider investing in Tata Ethical Fund.
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  |7510 Answers  |Ask -

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

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Is it good to invest in tata health sector mutual fund
Ans: Whether or not the Tata Health Sector Mutual Fund (Tata India Pharma & Healthcare Fund) is a good investment for you depends on your individual investment goals and risk tolerance. Here's some information to help you decide:

The Fund:

Invests in companies in the pharmaceutical and healthcare sectors in India.
Aims for long-term capital appreciation.
Requires a minimum investment of Rs 5,000 and offers SIP (Systematic Investment Plan) options.
Carries an expense ratio of 2.25% (regular plan)
Performance:

Delivered 54.43% returns in the last year (as of May 7, 2024).
Outperformed its category average over the past year.
Past performance is not necessarily indicative of future results.
Things to Consider:

Sectoral Fund: This fund focuses on a specific sector, which can be more volatile than diversified funds.
Risk Tolerance: Healthcare is generally a defensive sector, but investing in any sector carries risk. Consider your comfort level with potential for fluctuation.
Investment Goals: Align the fund's objective (long-term capital appreciation) with your goals.
Further Research:

Visit the fund's website on Tata Mutual Fund's site for details like portfolio holdings, performance history, and investment strategy https://online.tatamutualfund.com/.
Consider consulting a financial advisor for personalized advice based on your circumstances.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 22, 2024

Money
Hello experts, I have started to invest in Tata ethical mutual fund since it is shariah complaint. Is it good idea to invest monthly 1 lakh in sip .
Ans: Investing in Tata Ethical Mutual Fund, which is Shariah-compliant, is a thoughtful choice if you wish to follow Islamic principles in your investments. Shariah-compliant funds avoid investments in industries like alcohol, gambling, and interest-based businesses, which aligns with specific ethical and religious beliefs.

However, before committing Rs. 1 lakh per month to this investment, it's important to look at multiple aspects of your financial goals, risk profile, and the fund's performance.

Let's explore the various dimensions to help you make an informed decision.

Analyzing the Shariah-Compliant Investment Strategy
Shariah-compliant funds like Tata Ethical Mutual Fund can be suitable for individuals looking to invest in accordance with Islamic law. However, this strategy also means the fund has limited options, as certain sectors are excluded (like banking, alcohol, and tobacco).

Key Points to Consider:

The fund will have a smaller pool of stocks to choose from, limiting diversification.

The performance of the fund may be more volatile due to its narrow sectoral focus, such as reliance on sectors like IT, pharma, and other permissible industries.

Your investment may experience sectoral risk, meaning poor performance in one or more compliant sectors could impact the fund's returns.

This type of investment works well if you are comfortable with these restrictions and are ready to accept the risks associated with it.

Your Risk Appetite and Investment Horizon
Investing Rs. 1 lakh per month is a significant commitment, and the decision should be in line with your financial goals and risk appetite.

Key Considerations:

Long-Term Horizon: If your goal is long-term, then market fluctuations in a Shariah-compliant fund can be managed over time. The power of compounding works well when you invest consistently over a 10 to 15-year horizon.

Risk Profile: A Shariah-compliant fund may have higher volatility due to sectoral constraints. It's important to assess whether you are comfortable with this risk.

Diversification Strategy: While it’s good to invest in a Shariah-compliant fund, concentrating Rs. 1 lakh every month into a single fund may expose your portfolio to undue risk. Diversifying across other funds with different strategies could mitigate potential losses.

You may want to consider a mix of equity funds, multi-cap funds, or balanced funds to diversify your portfolio. This ensures a more balanced approach to risk management while adhering to your ethical preferences.

Performance of Shariah-Compliant Funds
The performance of any mutual fund is critical in deciding whether to commit to it over the long term. While Tata Ethical Fund may perform well in certain market cycles, its performance depends heavily on the sectors it is allowed to invest in.

Evaluate the Following Factors:

Historical Returns: Look at how the fund has performed over the last 3, 5, and 10 years. Assess its consistency compared to broader market indices or benchmark funds.

Fund Management: Understand the expertise of the fund manager. A good manager can make a significant difference in selecting the right stocks within Shariah-compliant boundaries.

Expense Ratio: Check the expense ratio of the fund. A high expense ratio can eat into your returns over time. Shariah-compliant funds tend to have higher expense ratios due to the niche nature of the investment.

Peer Comparison: Compare the performance of Tata Ethical Fund with other Shariah-compliant funds. This helps you benchmark whether you are getting competitive returns relative to others.

Without strong historical performance and low expense ratios, committing Rs. 1 lakh per month may not yield optimal results.

The Role of Actively Managed Funds Over Index Funds
Investing in actively managed funds rather than index funds can be advantageous, especially in a Shariah-compliant context. Index funds have their place, but they come with their own set of limitations.

Why Avoid Index Funds for This Goal:

Lack of Flexibility: Index funds follow a passive investment strategy and cannot adjust to market changes. Shariah-compliant funds require active management to navigate limited investment options, and an index fund may not be agile enough for your goals.

Sector Concentration: Shariah-compliant funds can be more volatile than a broad market index, so active management allows for more strategic decision-making. A skilled fund manager can navigate the complexities of ethical investing better than a passively managed index fund.

Active Monitoring: An actively managed fund like Tata Ethical Fund can respond to market trends and make adjustments to protect returns. This agility is especially important in a volatile market.

Disadvantages of Direct Funds and Why You Should Use Regular Funds
While some investors prefer direct funds to avoid commissions, investing through a trusted Mutual Fund Distributor (MFD) who is a Certified Financial Planner (CFP) can provide significant value, especially in complex portfolios.

Why Regular Funds are Better:

Expert Guidance: Direct funds require you to manage everything on your own. This can be overwhelming, especially if you are unfamiliar with market trends and fund selection. Investing through a CFP can provide valuable guidance.

Portfolio Review: Your investments need regular reviews to ensure they remain aligned with your goals. A CFP can help you rebalance your portfolio, something a direct fund does not offer.

Convenience: Regular funds provide a hassle-free experience with the added advantage of professional advice. Direct funds may save on commissions but may cost you more in terms of time and missed opportunities.

Goal Planning: A CFP will help you plan for your life goals, such as retirement, education, and medical emergencies. This adds significant value to your overall financial well-being.

Your Current Financial Scenario and Commitment to Rs. 1 Lakh SIP
Before committing Rs. 1 lakh per month to any mutual fund, it’s essential to assess your current financial position and future needs.

Current Situation:

You have significant ongoing medical expenses (Rs. 12 lakhs over the next 9 months).

Your monthly salary is Rs. 2.65 lakhs, with Rs. 1.25 lakhs going towards living expenses.

Rs. 1.4 lakhs are sent home monthly, and your assets include a home, plot, two rental houses, and equity investments.

Given the tight financial situation, it may be worth revisiting the Rs. 1 lakh SIP commitment. While it's essential to invest, it's equally important to ensure your emergency needs are covered, and you have enough liquidity to manage any sudden expenses or job changes.

A more cautious approach would be to start with a smaller SIP amount and gradually increase it as your financial situation stabilizes.

Final Insights
Investing Rs. 1 lakh per month in Tata Ethical Mutual Fund can be a good choice if aligned with your ethical beliefs and long-term goals. However, it is crucial to evaluate the risks associated with a Shariah-compliant fund due to sectoral limitations.

You may want to:

Ensure you have sufficient liquidity for emergencies before committing large sums to SIPs.

Consider diversifying your portfolio to manage risk better.

Seek guidance from a Certified Financial Planner who can help tailor your investments based on your unique needs.

By balancing your ethical considerations with financial prudence, you can create a well-rounded investment strategy that supports your long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Instagram: https://www.instagram.com/holistic_investment_planners/

..Read more

Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 10, 2024

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MOTILAL OSWAL NIFTY DEFENCE FUND WHAT IS YOUR INVESTMENT OPINION
Ans: The Motilal Oswal Nifty Defence Fund is a sector-focused fund that invests in the defence sector of India. Investing in sector-specific funds like this requires careful consideration, as the risk and return dynamics are different compared to diversified equity funds.

Let's break down the fund from an investment perspective:

Key Points to Consider
1. Sector-Specific Risk
Concentration Risk: This fund focuses on a single sector, making it highly sensitive to the performance of the defence industry. If the sector underperforms, the entire portfolio could suffer.

Cyclical Nature: The defence sector is influenced by government policies, budgets, geopolitical events, and economic cycles. It's a niche sector, and its performance can be unpredictable.

2. Limited Diversification
Unlike diversified equity funds, a sector fund like this limits your exposure to just one sector. This increases risk because the entire portfolio hinges on the performance of defence-related companies.

In contrast, actively managed diversified funds spread risk across sectors, reducing dependency on the performance of any single industry.

3. Long-Term Growth Potential
Government Focus on Defence: The Indian government is increasingly focused on self-reliance in defence, making significant investments and promoting domestic manufacturing. This could be a positive long-term growth driver for the sector.

Strategic Importance: The defence sector has strategic importance and might see consistent growth due to geopolitical factors and rising defence budgets.

4. Volatility and Timing Risk
Sectoral funds, including defence, are more volatile than diversified funds. A poor market cycle or negative news related to the sector could cause sharp declines in value.

Investing in sector funds requires timing the entry and exit carefully, which can be difficult for individual investors. Missing the right timing can result in significant losses.

5. Actively Managed Funds vs. Index Funds
Index funds, like the Motilal Oswal Nifty Defence Fund, follow a passive strategy, simply tracking the index. While this lowers costs, it also limits the fund's flexibility.

Actively managed funds, on the other hand, allow fund managers to adjust portfolios dynamically based on market conditions, potentially enhancing returns and managing risk better than a passive strategy.

6. Suitability for Your Portfolio
This fund is best suited for investors with high-risk tolerance and a strong belief in the growth potential of the defence sector.

If you already have a well-diversified portfolio and are looking to allocate a small portion to sectoral bets, this fund might be considered. However, it shouldn't form a large part of your core portfolio.

For most investors, a diversified equity fund or flexi-cap fund offers a better risk-adjusted return than sectoral funds.

Final Insights
The Motilal Oswal Nifty Defence Fund offers an opportunity to capitalize on the growth of India's defence sector, but it comes with higher risk due to sectoral concentration. If you're comfortable with volatility and have a long-term investment horizon, this fund could complement a well-diversified portfolio. However, actively managed diversified funds remain a more balanced and flexible option for most investors.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 14, 2025Hindi
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I’ve always aspired to work in the Ministry of External Affairs, but I know the competition is tough. I will be appearing for the SSC CGL exam this year. For Tier 2, which sections or strategies should I prioritise to boost my chances of landing my dream role in this recruitment drive?
Ans: The SSC CGL exam is a competitive entry-level job in the Ministry of External Affairs (MEA), with the main role being Assistant Section Officer (ASO). Tier 2 of the exam consists of multiple papers, with Paper I being required for all postings, including MEA. The main focus areas are mathematical quantitative aptitude, thinking and general intelligence, English language and understanding, and general knowledge.

Quantitative aptitude (200 Marks) is a high-scoring but time-consuming area, with areas such as algebra, geometry, trigonometry, menuration, data interpretation, and number system. Practice and strengthen basic skills, focusing on accuracy and speed. Resources for pattern comprehension include R.S. Aggarwal's Gradeup and Testbook quantitative aptitude with online mocks.

English language and comprehension (200 Marks) is high-scoring and essential for MEA, with areas like grammar, vocabulary, comprehension, synonyms and antonyms, and sentence correction. Strategies include daily reading schedules, vocabulary expansion using Norman Lewis's Word Power Made Easy, and solving cloze tests.

General awareness (100 Marks) is crucial for MEA aspirants, with areas like current affairs, international relations, Indian polity, geography, history, and economics. Stay informed about foreign policy changes, NCERTs, and NCERTs for stationary sections.

General intelligence and reasoning (60 Marks) is a scoring section, with areas like puzzles, coding-decoding, blood relations, series, and direction tests. Techniques include trying full-length mock tests, time management, previous year reports, and preparing for essays and letter writing on global concerns. All the Best for SSC CGL Exam.

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Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Hello Sir, I’m back to you with a question . Sir, doing mechanical in top nits or iiits or bits, what are the possibilities to do ms in computer science. I keep hearing from everyone to go for cse to do ms cs , but my daughter prefers good college first and then cse, based on her capability it’s extremely difficult to get cse in tier1 , so she says I will do mechanical in tier 1 and do ms cs abroad. Please guide on the pros , cons Sir
Ans: Pursuing Mechanical Engineering at top-notional institutes like IIT, NIT, IIIT, or BITS or any other NIRF-Ranked Engineering It may please be noted that if your daugther performs well in 1st Year of her BE/BTech, she will be upgraded to CSE Branch (based on the Institute's Internal Sliding Policy). Colleges offer advantages such as a strong alumni network, branch flexibility, and a strong resume for MS admissions. Students can enroll in elective courses in programming, data structures, and computer applications to prepare for an MS in CS.

However, transitioning from Mechanical to CS for an MS overseas can be challenging due to the need for prior knowledge in CS principles. With more self-learning and certificates, it is possible. Additionally, CS is tough for MS admissions in the US, and students may have to create a strong profile through internships, online courses, and certifications in CS domains without a CS degree.

To ensure a seamless transition, students should select electives in programming and computer science based on their undergraduate course (if the institute allows). Online programs for courses in data structures, Python, and artificial intelligence can be found on CS-oriented sites like Coursera, edX, or NPTEL. Summer internships involving data analysis, coding, or automation projects can also be sought. Multidisciplinary initiatives like mechanical engineering automation or computational fluid dynamics (CFD) can also be explored.

If your daughter's main goal is to pursue an MS in CS, it is better to consider Tier 1 Institutes with CS or IT branches and top-tier institutes with Mechanical focus actively pursuing CS. All the Best for Your Daughter's Prosperous Future.

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Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 15, 2025

Relationship
Hello sir/ma'am, i am 24 yrs old and my boy friend 25 yrs old.I met him in a friendly chat app .We were talking on calls,texting and video calls and met each other in real after a 1 yr of relationship.He is the first guy and love in my life and want to marry him.I even made my family to agree for our marriage.He too says he loves me so much and has imagined his life with me and want to marry me.He even told his parents will stick on to whatever he says.He hasn't yet conveyed to his parents yet and told he will introduce to them after his younger sister marriage.We both are students still. I recently found that,he goes to the chat apps again and chats to other girls.When i asked ..he told just friends and even questioned me saying don't u have guy friends? and don't u meet them?....i told him u r the first guy n i dont have any. When our relationship has gone till marriage...why is that he wants to chat to multiple girls?...Now,i started feeling like he doesn't love me as he expressed. He even had past 3 online relationships n all 3 breakups,he told all these before..he told i am the first girl in real life.. I am worried now.Why do guys chat with multiple girls though they are in a serious relation?..does he really love or is it a game? No physical between us.We just met once in a temple and he just kissed my hands while we are going back and got very emotional while he was about to leave. I am worried..what should i do?.please,suggest.
Ans: Dear Ammarao,
Not all men chat with multiple women when they are serious about their relationship. Some might, but most men in exclusive relationships don't continue chatting. If his chats are truly friendly, there isn't much to worry about. But if you think there is more to it, I would suggest you reconsider the relationship.

Please talk to him directly and ask him if these women are only friends and if they know he is in a committed relationship. If he is being too defensive, you can tell him that in a relationship, it is also important to focus on what your partner is comfortable with. If you do not like these online friendships, communicate it to him.

I hope this helps.

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Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Relationship
Recently, I (28M) had surgery and have been bedridden for 15 days. During this time, my girlfriend told me her female friend wanted to meet up with a guy. This guy was bringing along a male friend whom I’ve asked my girlfriend to avoid in the past because he tends to get touchy with her. They planned to stay in a hotel, and her friend wanted to be with the guy at night, meaning my girlfriend and the touchy guy would likely share a single room. A couple of days before the trip, she asked me if she should go. I told her it was her choice but made it clear I wasn’t happy about it. Despite that, she went, and when I confronted her, she gave responses like: • “I didn’t invite the touchy guy; the other guy did.” • “Just because you’re bedridden, you don’t want me to go outside.” • “I didn’t touch him; he got touchy with me.” Yeah, maybe I’m jealous or overthinking, but this whole situation has made me unsure about marriage altogether. Am I overreacting?
Ans: Dear Anonymous,
I really cannot comment if you are overreacting or have every reason to feel this way without knowing a bit more about the entire situation. But what I can tell is that you should communicate your feelings to your partner. Let her know that while maintaining individuality or pursuing individual wishes in a relationship is important, it is equally important to pay heed to what makes your partner uncomfortable. Your request, from what information you have provided, seemed reasonable, while her reasoning that it is the guy's fault, not hers also makes perfect sense. So I think the best course of action is to let the situation calm down and have an open conversation. Could she have avoided this meetup to make you happy? Yes. But, she could've thought that if she avoids one thing for your happiness, you might start asking her to give up more things in the future, which is a real issue in many relationships. I think it is important to clear up all of these concerns and feelings before moving on with lifelong commitment.

Hope this helps

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Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 14, 2025Hindi
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This is my second attempt at SSC CGL, and I’ve improved since last year. But I’m still anxious about the descriptive paper. Can you suggest ways to stand out in this section and make my essay and letter writing more impactful?
Ans: The SSC CGL descriptive paper requires a clear, structured, and effective presentation. To improve your essay writing skills, review the subject matter thoroughly and avoid deviations from the central theme. Sketch an initial outline and adhere to a straightforward framework, including an Introduction, Body, and Conclusion. Start with a hook and express your thesis or stance in a concise manner. Arrange arguments in a logical order, using data, examples, and facts to establish credibility. Avoid repetition and maintain brevity.

In summary, concisely summarize the primary themes and offer a fair perspective. Avoid vernacular language and maintain appropriate sentence structure and grammar. Maintain a clean writing style and avoid overwriting.

For writing a letter, adhere to the conventional format, maintain clarity and conciseness, and articulate the purpose in the first paragraph. Use simple language and avoid intricate terminology.

Regularly engage in writing essays and correspondence on various subjects to develop adaptability. Stay informed about the latest news and hot topics. Develop time management skills and consistently proofread your work for errors.

Developing impactful essays and letters with clarity, structure, and content relevance enhances your chances of success in the SSC CGL descriptive paper. All The Best for Your Prosperous Future.

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Kanchan

Kanchan Rai  |493 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 15, 2025

Asked by Anonymous - Jan 05, 2025Hindi
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How to manage stress?
Ans: The first step is to become aware of what triggers your stress. This self-awareness allows you to address the root causes rather than just the symptoms. Once you identify these triggers, you can start exploring techniques that help you cope effectively.

One effective approach is to incorporate regular self-care practices into your daily routine. This could include activities that bring you joy and relaxation, such as exercise, meditation, or spending time in nature. These practices not only help calm the mind but also improve your overall mood and resilience to stress.

Talking to someone you trust, whether a friend, family member, or professional, can also be a powerful way to manage stress. Sharing your feelings and experiences helps lighten the emotional load and provides different perspectives that might help you navigate your challenges more effectively.

It's also important to focus on what you can control and let go of things that are beyond your influence. This shift in mindset can reduce feelings of helplessness and frustration. Setting realistic expectations for yourself and others can also alleviate unnecessary pressure.

Remember to give yourself permission to rest and recharge. Adequate sleep, a balanced diet, and time for relaxation are essential for managing stress. When you take care of your body and mind, you're better equipped to handle life's demands.

Lastly, cultivating a mindset of gratitude and mindfulness can help you stay present and appreciate the positive aspects of your life, even during stressful times. These practices can create a sense of balance and help you respond to stress in healthier, more constructive ways. By integrating these approaches into your life, you can build resilience and find a sense of peace amidst the chaos.

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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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