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Ramalingam

Ramalingam Kalirajan  |1243 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 10, 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
Shrini Question by Shrini on Apr 10, 2024Hindi
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Hi All, Greetings! I wish for an expert to review my portfolio at a high level. My immediate goal is to achieve my 1st 1 cr in next 5 years. I am 34. My wife is also working..but this is only about my portfolio. Here are my investment details: 1.Mirae asset ELSS MF sip = 5k/ month current value(cv) = 1.2L, xirr shows 29% 2.Quant small cap growth mf (step up sip of 5% quarterly)= 5k/ month. cv = 34k 3.Quant flexi cap mf (lumpsum) cv = 34k 4. US stock Market monthly sip of 20K with cv = 3.5L based on 25% return as of today 5. India stock market monthly investment of 40K (approx) and cv = 5.8L based on 15% return as of today 6. PPF = 3k/ month and cv = 1.5L 7. NPS = 5k/ month and cv = 1.6L (#6 & #7 I started initially to benefit from 80c but since 2 years i moved to new tax regime but i want to continue these anyway) So, in short I am investing 78K/ month in various instruments. Can any expert share their valuable thoughts on my current investments please so that i can achieve my target. All thanks in advance.

Ans: Your portfolio reflects a diversified approach with investments across multiple asset classes and geographical regions, which is commendable. Here are some observations and suggestions:

Equity Mutual Funds: Mirae Asset ELSS MF has shown impressive returns, indicating a strong performer. Quant small cap and flexi cap funds are relatively new investments, so monitor their performance closely. Consider adding a large-cap or multi-cap fund for further diversification.

US and India Stock Markets: While investing in international markets can provide diversification benefits, be mindful of currency risks and geopolitical factors. Ensure you have a clear understanding of the companies you're investing in, especially in the US market.

PPF and NPS: These instruments offer tax benefits and long-term savings. Since you've moved to the new tax regime, evaluate whether the tax benefits outweigh the returns compared to other investment options.

Goal Setting: Define specific goals and timelines for your investments to track progress effectively. Consider consulting with a financial advisor to fine-tune your portfolio based on your risk tolerance, investment horizon, and financial objectives.

Regularly review and rebalance your portfolio to ensure it remains aligned with your financial goals and risk tolerance. Keep monitoring the performance of individual investments and make adjustments as necessary to stay on track towards achieving your target of 1 crore in the next 5 years.
Asked on - Apr 10, 2024 | Answered on Apr 11, 2024
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Thank you so much sir! It was pretty quick. Points noted: 1. Will do some more digging into ppf n nps offering 2. US based stocks are only limited to globally known large caps. Will do more due diligence 3. For mf, yes i am planning for a multicap soon. Want to avoid a large cap right now as it might be duplication of my stand alone large cap stocks also, since my risk appetite is relatively high for now Thank you again. You have a good day ahead
Ans: Given that small and midcaps are currently overvalued, consider adding a large-cap or multi-cap fund for further diversification. Large-cap funds can still be considered given the current market scenario. small and midcaps are currently overvalued.
Thank you again. You have a good day ahead!
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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Hello Sir This Sanjeev Kumar, From Himachal Pradesh. Below are my Investments. Sir I would like to known that Is my portfolio good enough to get better return. I want to accumulate 20 to 30 lakhs in next 10 to 12 years from below investment. Also suggest me that whether, below MF are good enough, or reshuffling is required. 1. Aditya Birla Sun life Multi Cap Fund-regular growth --- Rs 1000/- 2. Invesco India Flexi Cap Fund-regular plan growth ---- Rs 1000/- 3. Invesco Multicap fund-Regular growth --- Rs 1000/- 4. Kotak Emerging Equity fund growth ---- Rs 1000/- 5. Kotak tax saver fund growth (ELSS) ---Rs 500 /- 6. Kotak multi cap fund --------- Rs 1000/- 7. Union long term equity fund growth regular plan ----- Rs 1500/- 8. Nippon India Flexi cap fund ----------- Rs 1000/- 9. LIC ------------------ 51000 /- (Annually). 10. PPF -------------- 1.5 lac (Annually, Since 2015). 11. NPS ------------ 50000 /- (Annually).
Ans: Hello Sanjeev,

Your investment portfolio appears to be diversified with a mix of mutual funds, insurance, and other instruments. Diversification is key to managing risk and potentially achieving better returns over the long term. However, it's essential to periodically review and rebalance your portfolio to ensure it aligns with your financial goals and risk tolerance.

Consider assessing the performance of each mutual fund regularly and comparing it with benchmark indices and peer funds. If any fund consistently underperforms or if your investment goals change, you may consider reshuffling your investments.

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I am investing ?3, 000/- each in SIP of Axis Blue Chip Fund, Parag Parikh Flexi Cap, Edelweiss Balanced Advantage, SBI Magnum Mid Cap, Kotak Small Cap and Kotak Gold Fund. Is my portfolio an investment in right direction. I intend to keep the investment for 10 years.
Ans: Your portfolio seems to be well-diversified across various categories of mutual funds, which is a good strategy for long-term wealth accumulation. Let's analyze each fund in your portfolio:

Axis Blue Chip Fund: This fund invests in large-cap stocks with a track record of stable earnings and strong fundamentals. It offers stability and growth potential, making it suitable for conservative investors.
Parag Parikh Flexi Cap Fund: This flexi-cap fund has the flexibility to invest across market capitalizations and sectors. It follows a bottom-up stock-picking approach, aiming for long-term capital appreciation. It's suitable for investors seeking diversification and growth.
Edelweiss Balanced Advantage Fund: This fund dynamically allocates between equity and debt instruments based on market conditions. It aims to provide stable returns with lower volatility, making it suitable for investors with a moderate risk tolerance.
SBI Magnum Mid Cap Fund: Mid-cap funds like this one invest in mid-sized companies with the potential for higher growth. They can be more volatile but offer the potential for significant long-term returns.
Kotak Small Cap Fund: Small-cap funds invest in small-sized companies with high growth potential. They can be more volatile but offer the potential for substantial long-term gains.
Kotak Gold Fund: This fund invests in gold ETFs, providing exposure to the precious metal. Gold can act as a hedge against inflation and currency fluctuations, adding diversification to your portfolio.
Overall, your portfolio covers a range of market segments, including large-cap, flexi-cap, mid-cap, small-cap, and gold. This diversification can help spread risk and optimize returns over the long term. However, ensure that your portfolio aligns with your risk tolerance and investment goals.

Consider consulting with a Certified Financial Planner to review your portfolio and make any necessary adjustments based on changes in market conditions or your personal circumstances. They can provide personalized guidance to help you achieve your investment objectives with confidence over the next 10 years.
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Sir I am just start sip UTI NIFTY F 50 3500 UTI NEXT 50 2500 PARAG PARAGH FELXI CAP 4000 NAVI MIDCAP 150 2500 QUANTH SMALL 2000 ITS GOOD SIR
Ans: Your selection of mutual funds for SIP investment appears to be diversified across different market segments, which is generally a good strategy for long-term wealth accumulation. Here are some considerations:

Index Funds: UTI Nifty 50 and UTI Next 50 are index funds that track the Nifty 50 and Nifty Next 50 indices, respectively. These funds provide exposure to top-performing large-cap and mid-cap companies, offering broad market diversification with relatively lower expense ratios.
Flexi-cap Funds: Parag Parikh Flexi Cap Fund and Navi Midcap 150 are flexi-cap and mid-cap funds, respectively. These funds have the flexibility to invest across companies of various market capitalizations, providing diversification and the potential for higher returns.
Small-cap Funds: Quant Small Cap Fund focuses on investing in small-cap companies with high growth potential. Small-cap funds can be more volatile but offer the potential for significant long-term returns.
Overall, your portfolio is well-diversified across large-cap, mid-cap, and small-cap segments of the market, which can help spread risk and optimize returns over the long term. However, it's essential to regularly review your portfolio's performance and ensure it remains aligned with your financial goals and risk tolerance.

Consider consulting with a Certified Financial Planner to evaluate your investment strategy and make any necessary adjustments based on changes in market conditions or your personal circumstances. They can provide personalized guidance to help you achieve your investment objectives with confidence.
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Ramalingam Kalirajan  |1243 Answers  |Ask -

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Sir , I'm 35 years now , Investing In company PPF ( COAL INDIA LIMITED) 10500 per month, need to further Invest 10000 per month in MF for long term and my risk category is Conservative
Ans: Given your conservative risk profile and the desire for long-term investment, it's prudent to consider mutual fund options that prioritize stability and consistent returns. Here are some suggestions:

Large-cap Equity Funds: These funds invest in well-established companies with a track record of stable earnings and lower volatility. They offer relatively lower risk compared to mid-cap or small-cap funds. Look for funds with a proven track record of delivering consistent returns over the long term.
Balanced Advantage Funds: These funds dynamically allocate between equity and debt instruments based on market conditions, aiming to provide stable returns with lower volatility. They can be suitable for conservative investors seeking a balance between growth and capital preservation.
Hybrid Equity Funds: These funds invest in a mix of equity and debt instruments, offering diversification and downside protection. They are suitable for investors looking for a combination of growth and stability in their portfolio.
Index Funds: These funds passively track a market index like the Nifty 50 or Sensex, offering broad market exposure with low expenses. They can be a suitable option for conservative investors seeking stable returns without active fund management.
Debt Funds: Consider allocating a portion of your investment to debt funds for stability and income generation. Options include short-duration funds or corporate bond funds, which invest in high-quality fixed income securities.
Before investing, carefully assess the risk-return profile of each fund and ensure it aligns with your investment objectives and risk tolerance. It's also advisable to consult with a Certified Financial Planner to create a personalized investment plan tailored to your financial goals and circumstances. They can provide valuable guidance and help you navigate the complexities of mutual fund investing to achieve long-term wealth accumulation with peace of mind.
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I am buying MFs through icici direct It was till now mostly elss to save tax I want to invest in bulk ( no SIP ) now My questio is I gather icici would charge 1.5 % upfront for any buys and 1% on it every year then onwards so after 10 yars i gain say 15 % overall then , 11.5 % ( 1.5 +10 ) will already been charged by icici leaving me with 3.5% returns? Is this correct ? they never rwspond transparently abd give evasive replies
Ans: It's important to clarify the fee structure and its impact on your overall returns when investing through platforms like ICICI Direct. While they may charge an upfront fee and an annual fee for maintaining your investments, the impact on your returns may not be as significant as you've outlined.

Firstly, the upfront fee is typically a one-time charge applied at the time of purchase and is not deducted annually from your investment returns. Similarly, the annual fee (if applicable) is usually a percentage of the assets under management and is deducted from your investment periodically, rather than as a lump sum at the end of the investment period.

While fees can affect your returns, it's essential to consider the potential returns generated by your investments over time. If your investments perform well, they can potentially outweigh the impact of fees on your overall returns.

However, it's crucial to have clarity on the fee structure and its impact on your investments. If you're unsure about the fees charged by ICICI Direct or if you feel they're not being transparent, it may be beneficial to seek advice from a Mutual Fund Distributor (MFD) who can provide unbiased guidance and help you navigate the investment process more effectively. Working with an MFD can bring synergy to your investment journey and ensure you make informed decisions aligned with your financial goals.
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Would like to invest 20L lumpsum for period of next 5 to 7 years
Ans: Investing a lump sum of 20 lakhs for a period of 5 to 7 years requires a careful approach to balance potential returns with risk. Here are some considerations:

Risk Tolerance: Assess your risk tolerance to determine the appropriate allocation between equity and debt investments. For a shorter investment horizon of 5 to 7 years, it's generally advisable to lean towards a more conservative allocation to minimize the impact of market volatility.
Asset Allocation: Consider diversifying your investment across asset classes such as equities, debt, and possibly alternative investments like gold or real estate investment trusts (REITs). This can help spread risk and optimize returns based on market conditions.
Equity Investments: Allocate a portion of your lump sum to equity investments for the potential to generate higher returns over the long term. You may consider investing in diversified equity mutual funds or index funds that track broad market indices.
Debt Investments: Allocate another portion of your lump sum to debt investments for stability and income generation. Options include fixed deposits, debt mutual funds, or government bonds. Choose instruments with a suitable maturity period based on your investment horizon.
Review and Rebalance: Periodically review your investment portfolio and rebalance as needed to ensure it remains aligned with your financial goals and risk tolerance. Adjustments may be necessary based on changing market conditions and your evolving investment objectives.
Consult a Financial Advisor: Consider consulting with a Certified Financial Planner who can provide personalized advice tailored to your financial situation and goals. They can help create a customized investment strategy and provide ongoing guidance to optimize returns while managing risk.
By taking a diversified approach and staying disciplined with your investment strategy, you can work towards achieving your financial objectives over the next 5 to 7 years.
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Ramalingam Kalirajan  |1243 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

Asked by Anonymous - Apr 11, 2024Hindi
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Why don't you take into reckoning schemes of Quant Mutual Fund while suggesting funds to investors, despite their outperformance? Secondly, what do you think about lump sum investment vis a vis SIP ?
Ans: When suggesting mutual funds to investors, I aim to provide a broad range of options that align with their financial goals, risk tolerance, and investment horizon. While Quant Mutual Fund schemes may have delivered outperformance in certain periods, my goal is to offer a balanced perspective by considering various fund houses and investment styles.

Regarding lump sum investment versus SIP (Systematic Investment Plan), both approaches have their pros and cons. Lump sum investment involves investing a large amount of money upfront, which can potentially lead to higher returns if the market performs well. However, it also exposes investors to the risk of market timing and volatility.

On the other hand, SIPs involve investing a fixed amount regularly over time, which helps average out market fluctuations through rupee cost averaging. SIPs are suitable for investors who prefer a disciplined and systematic approach to investing and want to mitigate the risk of timing the market.

Ultimately, the choice between lump sum investment and SIP depends on factors such as the investor's risk tolerance, investment horizon, and market outlook. It's essential to consider individual circumstances and consult with a Certified Financial Planner to determine the most suitable approach for achieving financial goals.
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Ramalingam Kalirajan  |1243 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

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Suggest me sip for 10 yrs wth gud profit mam I m bala
Ans: Bala! Investing in SIPs (Systematic Investment Plans) for a period of 10 years can be a prudent way to build wealth over the long term. Here are some suggestions for SIPs that have the potential for good returns:

Large-cap Equity Funds: These funds invest in well-established companies with a track record of stable earnings and are relatively less volatile compared to mid-cap and small-cap funds. Examples include funds that track the Nifty 50 or Sensex indices.
Multi-cap Equity Funds: These funds have the flexibility to invest across companies of various market capitalizations, offering a diversified portfolio. Look for funds with a proven track record of delivering consistent returns over the long term.
Mid-cap and Small-cap Equity Funds: These funds invest in companies with smaller market capitalizations, which have the potential for higher growth but come with higher volatility. If you have a higher risk appetite and a longer investment horizon, consider allocating a portion of your SIP towards these funds.
Sectoral Funds: Investing in SIPs focused on specific sectors like technology, healthcare, or banking can be profitable if you have a strong conviction about the growth prospects of these sectors. However, sectoral funds come with higher risk and volatility, so it's essential to diversify your portfolio accordingly.
Remember to choose SIPs that align with your risk tolerance, investment goals, and time horizon. It's also crucial to review your portfolio periodically and make adjustments as needed. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and objectives. Happy investing!
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Ramalingam Kalirajan  |1243 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

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My monthly salary income is Rs.85,000/-. I have a housing loan of Rs 37.5 lakhs in SBI and am paying Rs 30,000 as EMI. This is the sixth year I am paying the loan. So far, I have paid Rs 8.5 lakhs towards the loan amount. Recently i have received an arrears of Rs.10 Lakhs. I am looking for a regular monthly income by investing Rs. 10 Lakhs. Should invest Rs. 10 Lakhs or make payment towards home loan. Please suggest.
Ans: Given your financial situation, it's important to consider various factors before making a decision.

Home Loan: Making a lump sum payment of Rs. 10 lakhs towards your home loan can significantly reduce the outstanding principal amount. This can lead to a reduction in the total interest paid over the remaining tenure of the loan and potentially shorten the loan duration. However, consider whether the interest rate on your home loan is higher than the potential returns from alternative investments.
Investment: Investing Rs. 10 lakhs to generate a regular monthly income is another option. You can explore investment avenues such as Fixed Deposits, Mutual Funds, or Bonds that offer regular interest or dividend payments. However, consider the risk-return profile of these investments and whether they align with your financial goals and risk tolerance.
Financial Goals: Evaluate your financial goals and priorities. If you prioritize reducing debt and becoming debt-free sooner, making a lump sum payment towards your home loan might be the right choice. On the other hand, if generating a regular monthly income is your primary goal, investing the Rs. 10 lakhs might be more suitable.
Consultation: Consider consulting with a Certified Financial Planner who can assess your overall financial situation, goals, and risk tolerance. They can provide personalized advice and help you make an informed decision based on your specific circumstances.
Ultimately, the decision depends on your individual financial objectives, risk tolerance, and overall financial health. Ensure you weigh the pros and cons of each option carefully before making a decision.
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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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