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Ramalingam

Ramalingam Kalirajan  |9806 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
M Question by M on Sep 11, 2023Hindi
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which is best index funf now to invest in sip Mode

Ans: For investing in SIP mode, actively managed funds can indeed offer better potential for returns compared to index funds. When selecting actively managed funds, consider the following factors:

Fund Manager's Track Record: Look for funds managed by experienced and skilled fund managers with a proven track record of generating consistent returns over the long term.

Fund Performance: Evaluate the historical performance of the fund across different market cycles to assess its ability to outperform the benchmark index and peers.

Investment Philosophy: Understand the investment philosophy and strategy of the fund to ensure it aligns with your investment objectives and risk tolerance.

Expense Ratio: Consider the expense ratio of the fund, which directly impacts your overall returns. Lower expense ratios are generally preferred as they result in higher net returns for investors.

Consistency of Returns: Assess the fund's consistency in delivering returns over time, avoiding funds with highly volatile performance or erratic track records.

Fund Size and Liquidity: Consider the fund's size and liquidity to ensure ease of buying and selling units without significant impact on the fund's NAV.

Diversification: Look for funds with well-diversified portfolios across different sectors and market capitalizations to reduce concentration risk.

Based on these factors, you can explore actively managed funds across various categories such as large-cap, mid-cap, multi-cap, and flexi-cap funds that have a strong track record of performance and align with your investment goals. It's essential to conduct thorough research or consult with a financial advisor before making investment decisions.
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  |9806 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 06, 2024

Money
Sir, Plesase suggest some good Index funds as I would like to invest on tye same through SIP & also continue the same for atleast coming 15 years.
Ans: Investing wisely is crucial for securing your financial future. As you consider your investment options, it’s important to evaluate the advantages and disadvantages of different types of funds. While index funds are popular, they may not be the best choice for everyone. Let’s explore the reasons why actively managed funds could be a more suitable investment for you, particularly for a 15-year systematic investment plan (SIP).

Understanding Index Funds
Index funds are mutual funds designed to replicate the performance of a specific index, such as the Nifty 50. They offer several benefits, including lower expense ratios and simplicity. However, they also come with significant drawbacks that can impact your long-term investment goals.

Disadvantages of Index Funds
Limited Performance Potential:

Index funds aim to match the performance of their benchmark index, but they rarely outperform it. This limitation can hinder your returns, especially over a long investment horizon like 15 years.

Market Dependency:

Index funds are highly dependent on the overall market performance. During market downturns, index funds can suffer significant losses because they mirror the index’s movements without any strategic adjustments.

Lack of Flexibility:

Index funds follow a passive investment strategy, meaning they don’t respond to market changes or economic shifts. This inflexibility can lead to missed opportunities and suboptimal performance.

Benefits of Actively Managed Funds
Potential for Higher Returns:

Actively managed funds are managed by professional fund managers who aim to outperform the market. By selecting high-potential stocks and adjusting the portfolio based on market conditions, these funds can deliver superior returns.

Strategic Adjustments:

Active fund managers continuously monitor the market and economic trends. They make strategic adjustments to the portfolio, reducing exposure to underperforming assets and increasing investments in promising sectors.

Risk Management:

Active management involves careful risk assessment. Fund managers diversify the portfolio to minimize risk and protect your investments during market volatility. This proactive approach can lead to more stable returns.

The Role of a Certified Financial Planner
Engaging with a Certified Financial Planner (CFP) can enhance your investment strategy. A CFP can provide personalized advice based on your financial goals, risk tolerance, and investment horizon. They can help you select the right actively managed funds and monitor their performance.

Importance of Diversification
Diversification is a key principle in investing. It involves spreading your investments across various asset classes to reduce risk. Actively managed funds often provide better diversification compared to index funds, which are confined to the stocks in the index.

Evaluating Fund Performance
When selecting actively managed funds, it’s important to evaluate their historical performance. Look for funds with a consistent track record of outperforming their benchmark index. Consider the fund manager’s experience and investment style.

Expense Ratios and Costs
While actively managed funds typically have higher expense ratios than index funds, the potential for higher returns can justify the additional cost. It’s crucial to understand the fee structure and assess whether the potential benefits outweigh the costs.

Benefits of Regular Funds Over Direct Funds
Expert Guidance:

Investing through a Mutual Fund Distributor (MFD) with CFP credentials provides access to expert advice. MFDs can help you navigate complex investment decisions and optimize your portfolio.

Convenience and Support:

Regular funds offer ongoing support and administrative assistance. This can be especially beneficial for long-term investors who prefer a hands-off approach.

Risk Management:

MFDs actively manage your investments, ensuring that your portfolio remains aligned with your financial goals. They can make necessary adjustments based on market conditions, reducing your investment risk.

Investing Through SIP
Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly, promoting disciplined investing. SIPs in actively managed funds can leverage the benefits of rupee cost averaging, which reduces the impact of market volatility on your investments.

Long-Term Investment Strategy
For a 15-year investment horizon, actively managed funds can provide better growth potential and risk management. The active approach ensures that your investments are continually optimized for maximum returns.

The Importance of Regular Monitoring
Regularly monitoring your investments is crucial. Engage with your CFP to review your portfolio’s performance and make necessary adjustments. This proactive approach ensures that your investments remain aligned with your financial goals.

Understanding Market Trends
Staying informed about market trends can help you make better investment decisions. Actively managed funds benefit from fund managers’ expertise in identifying and capitalizing on emerging trends.

Rebalancing Your Portfolio
Periodic rebalancing is essential to maintain your desired asset allocation. Actively managed funds often undergo regular rebalancing to ensure optimal performance and risk management.

Benefits of Professional Fund Management
Professional fund managers have the expertise and resources to conduct in-depth research and analysis. Their insights can lead to better investment decisions and superior returns compared to passive index funds.

Conclusion
While index funds offer simplicity and lower costs, their limited performance potential and lack of flexibility can hinder your long-term investment goals. Actively managed funds, on the other hand, provide the potential for higher returns, strategic adjustments, and effective risk management. By working with a Certified Financial Planner and investing through regular funds, you can leverage expert guidance and optimize your investment strategy.

Investing through SIP in actively managed funds can ensure disciplined investing and better growth potential over a 15-year horizon. Regular monitoring, understanding market trends, and periodic rebalancing are essential to achieving your financial goals.


Your decision to invest for the long term shows foresight and commitment to your financial future. It’s commendable that you’re considering all options and seeking professional advice to make informed decisions.

Understanding the complexities of investing can be challenging. By exploring different investment avenues and seeking guidance, you’re taking the right steps toward securing a stable and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Sir, Is Integrated Msc(Mathematics & Computing) in OUTR,Bhubaneswar good for career perspective.
Ans: Dillip, Odisha University of Technology and Research's Integrated M.Sc. in Mathematics & Computing is a five-year UGC-approved and AICTE-recognized program accredited by NAAC-A grade, offering a unique blend of mathematical modeling, computational methods, and software development skills. The School of Basic Sciences & Humanities houses Ph.D.-qualified faculty engaged in interdisciplinary research projects, supported by modern computing labs and mathematical modeling facilities. OUTR holds NIRF ranking of 201-300 in engineering category and has achieved NBA accreditation for select programs, ensuring quality education standards. The program's placement cell has recorded an overall placement rate of 82-90% for recent batches with an average package of ?6.03 LPA, and Mathematics & Computing graduates specifically secured positions at TCS, Deloitte, Accenture, and similar firms in roles spanning data analysis, software development, and quantitative research. Student support systems include dedicated training cells, technical clubs, coding workshops, and comprehensive career guidance that prepare graduates for diverse roles in IT, finance, research, and emerging fields like artificial intelligence and data science.

Recommendation: Considering OUTR's solid institutional credentials, interdisciplinary curriculum, modern infrastructure, consistent placement performance, and comprehensive student support systems, pursuing the Integrated M.Sc. Mathematics & Computing at OUTR provides excellent career prospects in high-growth sectors like data science, software engineering, and quantitative finance, aligning well with India's expanding demand for mathematically skilled professionals. All the BEST for a Prosperous Future!

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My son allotted in mnnit allahabad program Geoinformatics. He has done btech in cse. The same program offer in DTU delhi. Please suggest about this new program future and placement.
Ans: Ranjit Sir, MNNIT Allahabad’s M.Tech in Geoinformatics (GIS & Remote Sensing) is a two-year, full-time, AICTE-approved and NAAC-accredited program under a deemed university, led by civil and remote-sensing faculty collaborating with ISRO and IIT guest experts, with specialized labs for GNSS, ArcGIS, image processing and a Geospatial Innovation Cell supporting consultancy projects. Its graduates have secured an average placement rate of 90%+ and an average package of ?17.68 LPA over the last three years, with top recruiters including TCS, L&T, and government research agencies. Delhi Technological University’s M.Tech in Geoinformatics is a two-year, NAAC-‘A’-graded state university program housed within the Multidisciplinary Centre for Geoinformatics, featuring interdisciplinary research projects funded by DST and ISRO, modern laboratories for spatial data analytics and remote-sensing, and regular consultancy with government bodies. DTU reports an 85% placement rate with an average package of ?8.50 LPA, placing graduates in roles at MapmyIndia, NIC, and private geospatial firms. Both institutions provide robust student support through dedicated placement cells, technical clubs, and mentorship, but MNNIT’s higher package metrics reflect stronger industry ties and alumni networks, while DTU’s center emphasizes emerging research collaborations and part-time sponsorships. The geoinformatics sector in India continues to expand—driven by smart-city initiatives and precision agriculture—with entry-level salaries around ?4 LPA, mid-career ?6 LPA, and senior roles up to ?19 LPA, underscoring strong long-term growth.

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My son did B.Tech in Electrical and Electronics from GITAM, HYD. Then completed M.Tech in AI from Bitspilani. Now doing MBA from NMIMS, Mumbai, one year completed, now my son has to choose specialization. He is stuck between Operations + DS and Finance. Please guide which specialization will be more promising and stabilize my son's career.He is currently working in TCS in AI & DS domain for 6 yrs.
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my daughter has humanities with maths in terms of lucrative career opportunities Economics (hons) is better or psychology (hons) ?
Ans: Anjali Madam, Considering your daughter’s interests, long-term objectives, and the insights shared, select the option that best aligns with her aspirations: Graduates in Economics (Honours) emerge with robust analytical and quantitative skills underpinned by rigorous training in microeconomic and macroeconomic theory, econometrics, and statistical modelling, equipping them for roles in financial analysis, economic research, policy advisement, management consulting, data analytics, and risk management across banking, insurance, consulting firms, government ministries, international organisations, and NGOs; their strong foundation in economic forecasting, market analysis, and resource allocation makes them highly sought after for assessing investment strategies, informing fiscal and monetary policy, optimising supply chains, and guiding business strategy within sectors as diverse as manufacturing, healthcare, international trade, and technology start-ups. Economics departments at leading institutions typically boast AICTE or UGC approval and NAAC A–A++ accreditation, Ph.D.-qualified faculty actively publishing in top journals, advanced research infrastructure including computing labs for big-data econometrics and financial modelling, consistently high placement rates ranging from 70% to 90% over the last three years, and comprehensive student support through dedicated career-development cells, industry mentorship programmes, and active economics societies. Conversely, Psychology (Honours) graduates acquire deep understanding of human behaviour, cognitive processes, and research methodologies—ranging from experimental design and psychometric assessment to counselling techniques and neuropsychology—that prepares them for careers in clinical psychology, counselling and rehabilitation, human resources, organisational behaviour consultancy, educational psychology, forensic and sports psychology, market research, UX and human-factors design, and health-care management; they can pursue further specialisations via MSc or MA, professional certifications, or M.Phil/Ph.D. pathways, with emerging opportunities in corporate wellness, digital mental-health platforms, and behavioural finance. Psychology programmes at reputable universities maintain UGC/AICTE recognition and NAAC A+ accreditation, faculty active in interdisciplinary research and clinical practice, well-equipped labs for cognitive neuroscience and behavioural analytics, placement rates of 60%–85% over recent cohorts, and robust student support systems including counselling centres, hands-on field internships, peer mentoring networks, and partnerships with hospitals and NGOs. While Economics honours often promises quicker entry into high-growth finance and consulting roles with strong quantitative emphasis, Psychology honours offers a more diverse spectrum of people-centric careers with potential for both research and practice in mental-health and organisational settings. Long-term growth in India’s bio-pharma, healthcare, and digital analytics sectors underscores the value of data-driven economic expertise, whereas rising awareness of mental health and Well-being at work fuels demand for qualified psychologists in clinical, educational, corporate, and forensic domains. Both disciplines benefit equally from strong accreditation, research-active faculty, modern infrastructure, solid three-year placement records, and student support frameworks. Ultimately, the better choice hinges on whether your daughter’s strengths and passions align more with quantitative economic modelling, policy and business strategy, or with understanding and improving human behaviour through psychological science and therapy. Recommendation: Considering her aptitude in mathematics and desire for quantitative problem-solving coupled with versatile sectoral prospects, Economics (Honours) offers broader high-growth career pathways and analytical rigor, whereas Psychology (Honours) is ideal if she prioritises people-centric roles and clinical or organisational applications—choose the honours degree that best aligns with her interests and long-term professional aspirations. All the BEST for her Prosperous Future!

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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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