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Nikunj

Nikunj Saraf  |308 Answers  |Ask -

Mutual Funds Expert - Answered on May 23, 2023

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more
abhijeet Question by abhijeet on May 09, 2023Hindi
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Hello nikunj, Iam 40 years I have following MF portfolio with total investment of 5,000/- per month. Can you please suggest if i should continue them to generate good returns in long run. axis blues chip growth- 1500 ICICI value discovery direct -holding Quant Active Fund - Growth =2000, Quant Tax Plan - Direct Plan-1500 would like to have 50lkhs+ till 55yrs age

Ans: Hello Abhijeet. Your portfolio is well chosen and aligned with market. To achieve a corpus of 50 Lakhs, I would recommend to increase your sip to 7500 monthly. You can introduce the small cap category in your portfolio.
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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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on May 04, 2023

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Hello Hardik, I have following MF portfolio with total investment of 16,000/- per month. Can you please suggest if i should continue them to generate good returns in long run (10 years horizon). Nippon small cap direct - 3000 ICICI value discovery direct - 3000 Motilal Oswal mulitcap direct - 2000 Tata Digital India direct - 2000 Parag Parekh multicap direct - 3000 Mirae Asset Large cap Direct - 3000
Ans: Hello Mahesh,

I appreciate your interest in seeking advice for your mutual fund portfolio. Considering your 10-year investment horizon, it's essential to maintain a well-diversified portfolio that balances risk and return. Based on the funds you've mentioned, here's a brief overview of your current investments:

Nippon Small Cap Direct - A small-cap fund with potential for high returns but also carries higher risk.
ICICI Value Discovery Direct - A value-oriented fund focusing on undervalued stocks with growth potential.
Motilal Oswal Multicap Direct - A diversified multicap fund investing across market capitalizations and sectors.
Tata Digital India Direct - A sector-specific fund concentrating on technology and digital companies.
Parag Parekh Multicap Direct - A multicap fund with a focus on high-quality companies with a long-term growth perspective.
Mirae Asset Large Cap Direct - A large-cap fund investing in well-established, market-leading companies.
Your current portfolio exhibits a mix of small-cap, multicap, value-oriented, and sector-specific funds. While it has potential for good returns, I would recommend a few adjustments to make it more balanced:

Continue with Nippon Small Cap Direct, ICICI Value Discovery Direct, and Parag Parekh Multicap Direct as they cater to different market segments and investment styles.
Consider reducing the allocation to Tata Digital India Direct, as sector-specific funds carry higher risk. You may allocate this portion to a more diversified equity fund.
Maintain your investments in Motilal Oswal Multicap Direct and Mirae Asset Large Cap Direct, as they provide stability and exposure to large-cap stocks.
To further diversify your portfolio, consider adding a mid-cap fund and an international fund to give you exposure to different market segments and geographies, or a short duration debt fund (given increasing interest rate cycle) if you wish to be risk averse.
Please remember that these suggestions are based on a general analysis of your portfolio. I recommend consulting a professional financial advisor to discuss your specific risk appetite, financial goals, and requirements before making any changes.

Wishing you success in your investment journey!

Best regards,
Hardik

..Read more

Ramalingam

Ramalingam Kalirajan  |8547 Answers  |Ask -

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

Asked by Anonymous - Apr 10, 2024Hindi
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Below is my MF Portfolio(with Profit/Loss). Investing for the past 1.5 Years (SIP : 2000rs each) HDFC Focused 30 Fund - Regular Plan - Growth --> 15.04% HDFC MID-CAP OPPORTUNITIES FUND - GROWTH OPTION --> 14.46% HDFC LARGE AND MID CAP FUND - REGULAR PLAN - GROWT --> 13.15% HDFC Top 100 Fund - Regular Plan - Growth --> 12.9% HDFC Balance Advantage Fund - Regular Plan - Growth --> 12.36% NIPPON INDIA SMALL CAP FUND - GROWTH PLAN - GROWTH --> 10.78% HDFC SMALL CAP FUND - REGULAR PLAN - GROWTH --> 9.2% SBI Large & Midcap Fund Regular Growth --> 7.19% ICICI Prudential Savings Fund - Growth --> 4.47% SBI MAGNUM GLOBAL FUND - REGULAR PLAN - GROWTH --> -0.73% Should I continue or make any changes ? Please do suggest My Objective is to invest for Long Term. Returns should exceed the inflation(anything above that is bonus).
Ans: Your MF portfolio demonstrates a diversified mix of funds, reflecting your intention to invest for the long term. It's commendable that you've been consistently investing through SIPs, as this strategy promotes disciplined investing and helps navigate market volatility.

Considering your objective of investing for the long term and aiming for returns that exceed inflation, here are a few suggestions:

Review Fund Performance: Evaluate the performance of each fund relative to its benchmark and peers. Funds that consistently underperform may warrant reconsideration.
Asset Allocation: Ensure your portfolio maintains a balanced allocation across different asset classes, including large-cap, mid-cap, and small-cap funds. This diversification helps manage risk and capture growth opportunities across market segments.
Rebalance if Necessary: If any fund significantly deviates from its intended allocation or fails to meet performance expectations, consider reallocating your investments accordingly.
Stay Informed: Keep abreast of market developments, economic trends, and fund manager changes that may impact your investments. Regularly review your portfolio to ensure it remains aligned with your financial goals.
Consult with a Certified Financial Planner: Seeking professional advice can provide valuable insights and help you make informed decisions about your investments. A financial planner can assess your risk tolerance, investment horizon, and financial objectives to provide personalized recommendations.
Remember, investing for the long term requires patience and discipline. While short-term fluctuations are inevitable, staying focused on your financial goals will help you navigate market volatility and achieve long-term success.

..Read more

Ramalingam

Ramalingam Kalirajan  |8547 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jun 28, 2024Hindi
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Dear Sir, I am 55 years old working in private company. I am investing in following MF monthly, Nippon Small Cap - 10000, Axis Small cap - 10000, HSBC Mid Cap - 10000, ICICI Equity & Debt - 15000, Franklin India Prima fund - 15000, HDFC Balanaced Advantage - 20000. My current MF value is Rs. 1.34 Crores. Apart from this i have invested in Stocks - 36 Lac, PF - 45 Lac, NPS - 22 Lac, FD - 35 Lac. I have taken Health Insurance. I require around 40 Lac for my daughter marriage. 1. I want to know whether my MF portfolio is good to continue or any changes to be made for better return. 2. I will be retiring in 3 years. How i need manage my funds / invest further to achieve 5 Crores retirement fund.
Ans: You've done a commendable job with your investments. Balancing between mutual funds, stocks, PF, NPS, and FDs is impressive. Your dedication to securing your daughter's marriage fund and planning for retirement shows foresight and responsibility. Let's analyze and optimize your portfolio for the best possible returns.

Current Mutual Fund Portfolio

Your current mutual fund investments are diversified across various categories. This includes small cap, mid cap, equity & debt, and balanced advantage funds. Each type serves a unique purpose, balancing risk and return.

Small Cap Funds

Small cap funds have high growth potential but come with significant risk. Your investments in Nippon Small Cap and Axis Small Cap Funds are great for high returns over the long term. Given your proximity to retirement, it might be wise to reduce exposure to mitigate risk.

Mid Cap Funds

Mid cap funds like HSBC Mid Cap offer a balance between risk and return. They can provide substantial growth but are less volatile than small cap funds. Keeping a portion in mid cap is sensible, but consider reducing the allocation as you near retirement.

Equity & Debt Funds

ICICI Equity & Debt Fund provides a balanced approach, combining equity growth and debt stability. This fund type aligns well with your nearing retirement, offering moderate risk and steady returns.

Balanced Advantage Funds

HDFC Balanced Advantage Fund adjusts its allocation between equity and debt based on market conditions. This adaptability is beneficial for reducing risk while aiming for reasonable growth, making it suitable for pre-retirement phase.

Evaluation of the Portfolio

Diversification and Risk Management

Your portfolio is well-diversified across different fund types. However, considering your retirement in 3 years, a higher allocation towards stable, low-risk investments would be prudent. Shifting from high-risk small and mid cap funds to more stable options can protect your corpus.

Performance and Returns

Active funds have the potential to outperform the market. Your selection of actively managed funds is excellent. Regular monitoring and occasional rebalancing can enhance performance. Consult your Certified Financial Planner (CFP) for personalized advice.

Strategies for Future Investments
Risk Reduction

As retirement approaches, prioritize capital preservation. Gradually move funds from high-risk to low-risk investments. Consider increasing allocation in debt funds and balanced advantage funds. These provide stability and consistent returns.

Systematic Withdrawal Plan (SWP)

Implementing an SWP post-retirement ensures a steady income while keeping your investments growing. Plan withdrawals from your corpus strategically to balance between immediate needs and long-term growth.

Power of Compounding

Continue leveraging the power of compounding. Even conservative investments can grow significantly over time. Start transitioning funds early to maximize compound interest benefits while minimizing risks.

Managing Your Other Investments
Stocks

Your Rs 36 lakh in stocks should be evaluated for risk and return. Diversify across stable, high-dividend stocks to generate regular income. Consider reducing exposure to volatile stocks.

Provident Fund (PF)

Your PF of Rs 45 lakh is a substantial and safe retirement corpus. Continue contributions and leverage tax benefits. This fund provides a secure foundation for your retirement.

National Pension System (NPS)

With Rs 22 lakh in NPS, you have a tax-efficient retirement tool. Continue maximizing contributions. NPS offers a mix of equity and debt, providing growth with stability. Consider shifting allocation towards safer options as you near retirement.

Fixed Deposits (FD)

Your Rs 35 lakh in FDs ensures liquidity and safety. Continue using FDs for emergency funds and short-term needs. They offer guaranteed returns, aligning well with your low-risk strategy.

Planning for Your Daughter's Marriage
Marriage Fund Allocation

You need Rs 40 lakh for your daughter’s marriage. Keep this fund in low-risk, highly liquid investments. Short-term debt funds, FDs, or high-interest savings accounts are ideal. Avoid equity exposure for this goal due to market volatility.

Systematic Investment Plan (SIP)

If you haven't already, consider SIPs for a targeted marriage fund. SIPs in debt funds or balanced funds can help accumulate the required amount steadily. Regular contributions will build a substantial corpus by the time needed.

Achieving Your Rs 5 Crore Retirement Goal
Rebalancing Your Portfolio

Shift focus from high-risk to low-risk investments. Increase allocation in debt funds, balanced advantage funds, and other stable options. This transition should start now to align with your retirement timeline.

Increasing Contributions

Maximize your contributions to PF and NPS. Both offer tax benefits and long-term growth. Utilize any available tax-saving schemes to boost your retirement corpus.

Professional Guidance

Regularly consult your CFP. Their expertise will help you navigate market changes, optimize your portfolio, and ensure you stay on track towards your Rs 5 crore goal.

Regular Review

Conduct annual reviews of your portfolio. Adjust based on performance, market conditions, and your changing needs. Stay informed about economic trends and investment opportunities.

Final Insights
You've built a robust and diversified portfolio. Transitioning from high-risk to low-risk investments as you near retirement is crucial. Protecting your capital while ensuring steady growth will help achieve your Rs 5 crore retirement fund.

Stay disciplined with your investment strategy. Regularly consult your CFP for personalized advice. With careful planning and smart adjustments, you can secure a comfortable and financially stable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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