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Dev Ashish  | Answer  |Ask -

MF Expert, Financial Planner - Answered on May 12, 2023

Dev Ashish is a fee-only SEBI-registered investment advisor with over 15 years of active experience in the stock market. In 2011, he founded StableInvestor, a platform for personal finance and financial planning.
He provides professional fee-only investment advisory services to small and high networth individuals in order to help them achieve their financial goals.
Ashish's views are regularly published in national business publications. He has an MBA degree from NMIMS, Mumbai and also holds an engineering degree.... more
ashesh Question by ashesh on May 10, 2023Hindi
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HI.. I want to know which mf can deliver good returns in FY 23-24. I mean sectors and then mf in those sectors. kindly share 5-6 max

Ans: There is no sure-shot method to predict which mutual fund scheme or sector will do well in the short term or in the next 1 year.

Most investors are better off picking funds from diversified equity fund categories and being willing to remain invested for the long term, which is at least 5 years.
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

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

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Hi sir right now 22 I want to invest in MF around 2500 per month for next 28 years suggest some best MF
Ans: Investing in mutual funds is a smart decision. It's a great way to build wealth over time. Starting at 22 gives you a long investment horizon, which is advantageous.

Benefits of Mutual Funds
Diversification: Spreading risk across various assets.
Professional Management: Managed by experienced fund managers.
Liquidity: Easy to buy and sell.
Convenience: Suitable for different financial goals.
Evaluating Investment Options
Avoid index funds. They often track market indices passively. This means lower returns compared to actively managed funds.

Disadvantages of Index Funds:

Lower Flexibility: Limited to the index performance.
No Active Management: No adjustments based on market conditions.
Potential for Mediocre Returns: Follows the average market performance.
Instead, consider actively managed funds. They aim to outperform the market. Professional fund managers adjust the portfolio based on market trends.

Benefits of Actively Managed Funds
Higher Return Potential: Aims to beat the market.
Professional Management: Fund managers actively monitor and adjust the portfolio.
Flexibility: Can adapt to market changes.
Regular Funds vs Direct Funds
Investing through a Certified Financial Planner (CFP) has distinct advantages over direct funds.

Disadvantages of Direct Funds:

Lack of Professional Guidance: No expert advice.
Time-Consuming: Requires constant monitoring.
Higher Risk: Without professional insights, the risk increases.
Benefits of Regular Funds with CFP:

Professional Advice: Access to expert insights.
Better Decision Making: Informed investment choices.
Regular Monitoring: Constant portfolio reviews and adjustments.
Risk Management: Strategies to mitigate potential risks.
Recommended Strategy
Diversified Portfolio: Invest in a mix of large-cap, mid-cap, and small-cap funds.
Systematic Investment Plan (SIP): Invest Rs 2500 monthly via SIP.
Long-term Horizon: Continue investing for the next 28 years for optimal returns.
Steps to Start
Choose a Reliable Fund House: Ensure credibility and good track record.

Consult a Certified Financial Planner: Get personalized advice.

Start SIP: Automate your monthly investments.

Review Regularly: Monitor and adjust based on performance.

Final Insights
Starting early with mutual funds is commendable. By avoiding index funds and opting for actively managed funds, you can aim for better returns. Investing through a CFP provides professional guidance, ensuring informed decisions and effective risk management. Keep investing consistently, review periodically, and stay focused on your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7012 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

Asked by Anonymous - Jul 07, 2024Hindi
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Hi, I have around 30 lakhs to invest. I want to invest for long time.can you guide me which MFs to invest for highest return.
Ans: Investing Rs. 30 lakhs is a significant decision. It's essential to align your investments with your long-term goals. Before recommending specific mutual funds, let's break down a few critical aspects. This approach ensures you maximize returns while managing risks effectively.

Time Horizon and Risk Tolerance
A long-term investment horizon is beneficial. It allows you to benefit from the power of compounding. However, it's crucial to assess your risk tolerance. Are you comfortable with high-risk, high-reward investments? Or would you prefer a more balanced approach? Understanding this will help in choosing the right mutual funds.

The Role of Diversification
Diversification is key to managing risk. By spreading your investments across different types of funds, you can reduce the impact of market volatility. Equity mutual funds are often recommended for long-term investments. But, it’s essential to diversify across large-cap, mid-cap, and small-cap funds.

Importance of Actively Managed Funds
Many investors consider index funds or ETFs. However, these may not always be the best option for high returns. Actively managed funds, guided by experienced fund managers, can potentially outperform the market. These funds adapt to changing market conditions, unlike index funds that strictly follow a benchmark.

The Disadvantages of Index Funds
Index funds have lower expense ratios, but they lack flexibility. They mirror the market, meaning they can’t take advantage of opportunities that arise during market fluctuations. Over the long term, actively managed funds often deliver better returns, especially in the Indian market where active management can exploit market inefficiencies.

Regular vs. Direct Mutual Funds
You might also be considering direct mutual funds. While direct funds have lower expense ratios, they require continuous monitoring. A Certified Financial Planner (CFP) can guide you through regular mutual funds. These funds come with the added advantage of expert advice and periodic reviews, ensuring your portfolio stays aligned with your goals.

Benefits of Professional Guidance
Investing through a Certified Financial Planner (CFP) ensures that your investments are professionally managed. CFPs provide valuable insights, periodic reviews, and rebalancing strategies. This service is especially crucial in a dynamic market like India. A well-managed portfolio, guided by a CFP, can outperform self-managed investments.

Risk Management Strategies
While aiming for the highest returns, it's important not to ignore risk management. High-risk funds can offer high returns, but they also come with potential losses. A balanced approach, with a mix of equity, debt, and hybrid funds, can help manage this risk.

Asset Allocation for Long-Term Investment
For long-term goals, a higher allocation to equity funds is typically recommended. However, it’s wise to include some debt funds for stability. This balanced approach ensures your portfolio can weather market volatility while aiming for higher returns.

The Importance of Regular Reviews
Investing is not a one-time activity. Regular reviews and rebalancing are necessary to ensure your portfolio remains aligned with your goals. Market conditions change, and so should your investment strategy. A CFP can help with these regular reviews, ensuring that your investments stay on track.

Consider Tax Implications
Mutual funds are tax-efficient, but it’s important to consider the tax implications of your investments. Long-term capital gains tax (LTCG) applies to equity mutual funds. Understanding the tax impact on your returns can help in planning your investments better.

Avoiding Investment Cum Insurance Policies
If you hold any investment cum insurance policies like ULIPs, it might be wise to reconsider. These policies often come with high charges and lower returns compared to mutual funds. Surrendering these policies and reinvesting in mutual funds could be more beneficial for long-term growth.

Reinvestment Strategy
If you have any existing investments, it’s worth reviewing them. Sometimes, surrendering low-performing investments and reinvesting in well-performing mutual funds can enhance your portfolio’s overall returns.

Finally
Investing Rs. 30 lakhs with a long-term horizon is an excellent strategy. However, the key to maximizing returns lies in choosing the right mix of funds, understanding market dynamics, and staying disciplined. Working with a Certified Financial Planner (CFP) can provide the professional guidance needed to navigate these decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Moneywize

Moneywize   |174 Answers  |Ask -

Financial Planner - Answered on Sep 12, 2024

Asked by Anonymous - Sep 09, 2024Hindi
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I want to know which MFs can deliver good returns in FY 24-25. I mean sectors and then MFs in those sectors that are likely to show better performance in the year ahead. Kindly share 3-4 names across MF schemes.
Ans: For FY 2024-25, key sectors likely to show strong performance based on current trends include:

1. Infrastructure and Capital Goods: Government push on infrastructure projects is a major growth driver.

MF Scheme: ICICI Prudential Infrastructure Fund

This fund focuses on companies involved in infrastructure development and related sectors like construction, power, and engineering.

2. Banking and Financial Services: As the economy grows, banks and financial services benefit from increased credit demand and financial inclusion.

MF Scheme: SBI Banking & Financial Services Fund

This fund invests in banking and finance companies, which are expected to benefit from credit growth and rising consumption.

3. Pharmaceuticals & Healthcare: Post-pandemic, healthcare remains a focus with ongoing innovations and increased government spending.

MF Scheme: Nippon India Pharma Fund
This scheme invests in pharma and healthcare companies with good growth potential.

4. Technology and Digital: The tech sector is likely to maintain growth momentum due to digital transformation and IT spending by businesses.

MF Scheme: Tata Digital India Fund
This fund targets IT and digital businesses, which are poised to grow due to increasing demand for tech services globally.

These sectors are poised to do well, but macroeconomic factors and global trends can influence actual performance, so regular monitoring is essential.

Disclaimer: This is not a recommendation to invest in any particular MF. It is important to do your own research before making any investment decisions.

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hello, I'm a 49F married for 21years. It was an arranged match, and from day one my husband and sister have not gotten along. I've also been naive and under my sister's control for a long time, which has angered my husband a lot. In March they both had a verbal altercation and have not been on talking terms. Now my husband is not letting my 18y son meet my sister. My husband is demanding a sorry from my sister, post which only my son can meet her. I'm really sad as my sister dearly loves my son, also I don't feel its morally right to involve children in family politics. And my sister will not apologize to my husband. Need help to understand on how to get my innocent son out of this mess. My husband is very controlling, very angry, very interfering person, overall he has a very negative perspective on everything.
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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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