Latest news with #Minocha
Time of India
3 days ago
- Business
- Time of India
New investors' dilemma: Is flexi cap fund alone sufficient to deploy Rs 10 lakh for meeting goals
Live Events A Reddit user recently sparked an engaging conversation in the mutual fund community, outlining their plan to begin investing with a Rs 10 lakh lump sum and monthly SIPs of Rs 50,000–Rs 80, a long-term horizon of 10 years and a high risk tolerance, the investor questioned the need for multiple fund types, wondering why a single flexi-cap mutual fund wouldn't suffice for Indian equity reached out to an expert to understand whether only a flexi cap mutual fund is enough or not for a portfolio and why do investors need other funds as well in their funds are designed to offer broad market exposure, giving the fund manager the discretion to shift between large, mid, and small caps as market conditions evolve. 'This flexibility makes them a suitable base for most portfolios. However, the drawbacks in relying exclusively on flexi-cap holdings are manager bias and potential for alpha,' said Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial adds that one of the main drawbacks is the potential manager bias, where fund managers often allocate a large portion of the portfolio to large-cap stocks in order to minimize volatility which can lead to underexposure in high-growth mid and small-cap segments, especially during market phases where these segments if the time horizon is long (say 10+ years), making dedicated investments in mid and small-cap funds through SIPs can generate better returns if the investor can bear the higher volatility and asset allocation discipline is very important, Minocha said and also recommended that one should never go overboard on risky categories, so that some allocation lands into stable options such as large cap or flexi cap, which can be conveniently redeemed in emergencies without much the stock prices running high, investors are staying away from the market and looking for investment options where they can make investments and whether they should go for lumpsum or SIP investments in the volatile this concern of many investors and the reddit user having a lumpsum amount to deploy and further to start SIPs, Minocha recommends that putting the lump sum of Rs 10 lakh into the market all at once is not a good idea and should be staggered even for the long-term investor as this protects an investor from short-term volatility in the market and allows for averaging out the purchase further adds that in practice, one may park the lumpsum in a liquid or ultra-short duration debt fund while using a Systematic Transfer Plan (STP) to invest in equity mutual funds automatically over the next 6-10 months, balancing the risks of timing the market and capital deployment.'For the SIP portion, a diversified approach can mean balancing growth and risk. The core holding would be a flexi-cap, alongside a mid-cap fund for extra long-term growth potential. To a small degree, small-cap can be employed for alpha generation,' said should always make an investment decision based on investment horizon, risk appetite, and goals : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
25-04-2025
- Business
- Economic Times
Sensex up 8,000 points from April's low. Should you reconsider your SIP strategy?
Indian stock market is performing well. BSE Sensex is up. Market experts suggest investors should continue their SIP and STP investments. With the benchmark index - BSE Sensex - up 8,000 points from its April low level and reaching at the level of 79,801 on Thursday, a market expert recommends that SIPs and STPs should continue without interruption as they are good channels to negotiate market swings.'This is not the kind of time to rush and book profits, because it is a recovery rather than a structural rally. The tide is likely to turn again, and it may become volatile this year further too. Investors should not stop it at this time but hold the plan on which they make investments,' advised Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. Also Read | NFO Insight: Motilal Oswal Infrastructure Fund opens. Time to add to your MF mix? While recommending the SIP strategy for FY26, an expert recommended that this is a good time to begin SIPs and one should consider categories that offer diversified exposure.'FY26 is a good time to begin SIPs. New investors can start with Multi-Asset, Flexi Cap, or Balanced Advantage Funds to get diversified exposure. Avoid starting with niche or high-risk segments like small caps initially,' recommends Sagar Shinde, VP of Research at Fisdom. RBI announced a rate cut of 25 basis points in its bi-monthly policy on April 9 and Sensex crossed the level of 80,000 on April 23. Post the rate cut and the benchmark index reaching this level, Minocha recommends that portfolio rebalancing should adhere to the original asset allocation model rather than conflicts set up immediately by high short-term market premiums. If equities have performed way ahead of other assets and your asset allocation has drifted away from what your original asset allocation was then it may require an upward shift in some gains into debt to keep a fair level of balance is what Minocha further the current month, on April 7 the benchmark index was at the level of 73,137, the lowest in the current month so far. The BSE Sensex touched 80,000 levels on Wednesday and closed at 80,116.49 level extending its winning streak to a seventh index - BSE Sensex - touched its all-time high level on September 27, 2024. It touched a level of 85, the last five months, Sensex has gained 1.26% and 0.04% in the last six months. In the current calendar year so far, the benchmark index has gone up by 2.53% and by 4.17% and 4.69% in the last one and three months, respectively. Also Read | Nifty Bank surges 10% in 1 month to hit 52-week high level. Time to shift focus towards banking sector? With the benchmark on surge since last month, the expert advises that there is no need for particular strategies to book profits for a mutual fund investment and the long-term goals should stay in equities, while short and medium-term answers should go for debt or hybrid funds. Of utmost importance, therefore, is aligning an investment with financial goals and time horizons, Minocha adds. In April so far, small cap funds have taken the lead and have offered the highest average return of around 4.67%, followed by 4.13% by mid cap funds and 4.01% by multicap funds. Large cap funds have offered the lowest average return of 3.56% in the same investors who are looking to make investments can keep on making SIPs in multi-cap and flexi-cap funds for a minimum period of five years amid the market at high levels, the expert advises.'SIPs and STPs are ways to average the costs and withstand volatility. What seems a market high might be a bargain in a few years. Keeping on investing with a reasonable expectation of returns of not more than 12% a year from long-term holding-is the best way forward,' Minocha should always invest based on their risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
25-04-2025
- Business
- Time of India
Sensex up 8,000 points from April's low. Should you reconsider your SIP strategy?
With the benchmark index - BSE Sensex - up 8,000 points from its April low level and reaching at the level of 79,801 on Thursday, a market expert recommends that SIPs and STPs should continue without interruption as they are good channels to negotiate market swings. #Pahelgam Terrorist Attack Pakistan suspends Simla pact: What it means & who's affected What is India's defence muscle if it ever has to attack? Can Pakistan afford a full-scale war with India? 'This is not the kind of time to rush and book profits, because it is a recovery rather than a structural rally. The tide is likely to turn again, and it may become volatile this year further too. Investors should not stop it at this time but hold the plan on which they make investments,' advised Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. Also Read | NFO Insight: Motilal Oswal Infrastructure Fund opens. Time to add to your MF mix? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » While recommending the SIP strategy for FY26, an expert recommended that this is a good time to begin SIPs and one should consider categories that offer diversified exposure. 'FY26 is a good time to begin SIPs. New investors can start with Multi-Asset, Flexi Cap, or Balanced Advantage Funds to get diversified exposure. Avoid starting with niche or high-risk segments like small caps initially,' recommends Sagar Shinde, VP of Research at Fisdom. Live Events RBI announced a rate cut of 25 basis points in its bi-monthly policy on April 9 and Sensex crossed the level of 80,000 on April 23. Post the rate cut and the benchmark index reaching this level, Minocha recommends that portfolio rebalancing should adhere to the original asset allocation model rather than conflicts set up immediately by high short-term market premiums. If equities have performed way ahead of other assets and your asset allocation has drifted away from what your original asset allocation was then it may require an upward shift in some gains into debt to keep a fair level of balance is what Minocha further recommended. In the current month, on April 7 the benchmark index was at the level of 73,137, the lowest in the current month so far. The BSE Sensex touched 80,000 levels on Wednesday and closed at 80,116.49 level extending its winning streak to a seventh session. Benchmark index - BSE Sensex - touched its all-time high level on September 27, 2024. It touched a level of 85,978.25. In the last five months, Sensex has gained 1.26% and 0.04% in the last six months. In the current calendar year so far, the benchmark index has gone up by 2.53% and by 4.17% and 4.69% in the last one and three months, respectively. Also Read | Nifty Bank surges 10% in 1 month to hit 52-week high level. Time to shift focus towards banking sector? With the benchmark on surge since last month, the expert advises that there is no need for particular strategies to book profits for a mutual fund investment and the long-term goals should stay in equities, while short and medium-term answers should go for debt or hybrid funds. Of utmost importance, therefore, is aligning an investment with financial goals and time horizons, Minocha adds. In April so far, small cap funds have taken the lead and have offered the highest average return of around 4.67%, followed by 4.13% by mid cap funds and 4.01% by multicap funds. Large cap funds have offered the lowest average return of 3.56% in the same period. The investors who are looking to make investments can keep on making SIPs in multi-cap and flexi-cap funds for a minimum period of five years amid the market at high levels, the expert advises. 'SIPs and STPs are ways to average the costs and withstand volatility. What seems a market high might be a bargain in a few years. Keeping on investing with a reasonable expectation of returns of not more than 12% a year from long-term holding-is the best way forward,' Minocha added. One should always invest based on their risk appetite, investment horizon, and goals. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
