Do you have personal finance queries?
Please ask your questions HERE and rediffGURU Ramalingam Kalirajan, founder, Holistic Investments (external link), will answer your queries.
Mandar: Hi sir Is Long Term Investment in HDFC DEFENCE FUND Good?
Investing in sectoral funds like HDFC Defence Fund can indeed be riskier compared to diversified equity funds because they focus on specific sectors or industries.
Sectoral funds tend to be more volatile and susceptible to fluctuations in the particular sector they are invested in. Therefore, it's essential to consider your risk tolerance and investment objectives carefully before investing in such funds.
Additionally, ensure that the investment aligns with your overall investment strategy and portfolio diversification goals. Consulting with a financial advisor can also provide valuable insights into whether this fund is suitable for your investment needs.
Prachi: I started my career late. It's been only 5 years. I am working in IT sector. I want to spend 10k monthly in mutual fund. I am already 38 years old. Which mutual funds would you suggest which can give good returns? I can go with 1-5years of mutual funds.
Please suggest good mutual funds and how should I spend 10 k in them.
Hi Prachi, considering your investment horizon of 1-5 years and your monthly investment amount of 10k, it's essential to choose mutual funds that match your risk tolerance and investment goals.
For short to medium-term goals, you may consider a combination of equity-oriented balanced funds or aggressive hybrid funds for potential growth with relatively lower risk.
Additionally, you can allocate a portion to debt funds or liquid funds for stability and liquidity. It's advisable to diversify your investments across multiple funds to spread risk.
Consulting with a financial advisor can help tailor a portfolio that suits your needs and objectives effectively.
Dharmendra: I INVEST FROM LAST TWO YR 24000 /MONTH IN MUTUAL FUND WHEN I GOT 1 CR
To determine when you will reach 1 crore from your monthly investment of 24,000 in mutual funds, several factors need consideration:
- Rate of Return: The average annual return you expect from your mutual fund investments.
- Inflation: The impact of inflation on the purchasing power of your future returns.
- Investment Time Frame: The duration over which you plan to invest.
Without knowing your expected rate of return and the impact of inflation, it's challenging to provide an accurate timeframe. However, you can use investment calculators available online, which consider these factors to estimate when your investments might reach Rs 1 crore.
Additionally, consulting a financial advisor can offer personalised insights based on your investment goals and risk tolerance.
Ajit: I want to do sip of Rs 10000 for 20 years with a target corpus 1cr. currently I have sip for rs.4000/- in kotak flexi cap & 2000/- in SBI banking and financial fund. Remaining 4000/- I am purchasing additionally as per market conditions between these two funds.
Is it ok for me? I think I should invest this 4000/- in small cap fund in quant small cap or Nippon small cap. Please guide.
Given your current SIP investments in Kotak Flexi Cap and SBI Banking and Financial Fund, it's important to diversify your portfolio further. Since SBI Banking and Financial Fund carries high risk as a sectoral fund, you may consider stopping investments in it. Consider reallocating those funds to a different category, such as a small-cap fund. Small-cap funds offer potential for higher returns over the long term but also come with increased risk.
Before deciding, assess your risk tolerance and consult with a financial advisor for personalised guidance tailored to your financial goals and situation.
Anonymous: Sir I want approx 90 lakh in 12/15 years, how much money should I invest in which fund?
To accumulate approximately 90 lakhs in 12 to 15 years, you need to calculate the monthly investment required based on your expected rate of return. Here's a simplified example:
- Investment Period: 12 to 15 years
- Expected Rate of Return: Consider a realistic average annual return from mutual funds, say 10%.
- Future Value: 90 lakh
Using an investment calculator or formula, you can determine the monthly investment needed. However, here's a rough estimate:
- For 12 years: Monthly investment would be higher.
- For 15 years: Monthly investment would be relatively lower.
It's advisable to consult a financial advisor for a detailed analysis based on your risk tolerance and investment goals. They can recommend suitable funds aligned with your financial objectives.
- You can ask rediffGURU Ramalingam Kalirajan your questions HERE.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
