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Samraat

Samraat Jadhav  |1642 Answers  |Ask -

Stock Market Expert - Answered on Apr 15, 2024

Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 10, 2024Hindi
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Money
I am 34yrs old, I am investing 16,000/month in NPS, I want to invest in these mutual funds 1. Bandhan ELSS tax saver fund direct growth(12, 500) 2. Parag parikh flexi cap fund direct growth (7, 000) 3. Quant small cap fund growth (5,000) 4. Axis small cap fund growth (5, 000) 5. Axis banking and PSU debt fund growth (1500) 6. PGIM India equity savings fund growth (1500) I am planning to invest for 15-20yrs , and I also increase my investment 5% annually Pls suggest these funds? are good for my portfolio and how much corpus I reach
Ans: Your selection covers a range of fund types, which is good for diversification. Here's a brief assessment:

ELSS: Bandhan ELSS is a good tax-saving option, but ensure you're comfortable with the lock-in period.
Flexi-cap: Parag Parikh offers flexibility across market caps, good for long-term growth.
Small-cap: Both Quant and Axis small-cap funds can offer higher returns but come with higher volatility. Make sure you're comfortable with the risk.
Debt Funds: Axis banking and PSU debt fund is a relatively safer option, suitable for diversifying equity-heavy portfolios.
Equity Savings: PGIM India equity savings fund is a balanced fund with equity, debt, and arbitrage components, adding stability.
Corpus Estimation:
Assuming an average annual return of 10%:

Yearly Increment: 5%
Investment Period: 15-20 years
With these assumptions, you can accumulate a significant corpus. For a precise estimation, using a SIP calculator can help, but you're on a good path with these selections for long-term growth. Regularly review and adjust based on performance and market conditions.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Money
Dear Sir, I have a corpus of 30 lakhs, which I want to invest judiciously at the immediate, for 3-5 years. I am a Centeal Govt Pensioner 70 years of age. Presently I have SIP investments at Rs.1,000.00 each in SBI Focussed Equity Fund, SBI Flexicap Fund Regular, SBI Contra Fund, SBI Magnum Global Fund Regular, SBI Blue Chip Fund Regular; all since 4 years. 2. Besides the above, I have invested lump sum of Rs.6 lakhs each in SBI Magnum Midcap Fund Regular and SBI Multicap Fund Regular. 3. I have also invested in four ELSS Schemes yearly at the rate of Rs.1,50,000.00 each in Axis ELSS Tax Saver Fund(2021), Canara Robeco Tax Saver(2022), SBI Long Term Equity Fund Regular (2023) and Quant ELSS Tax Saver(2024). 4. Kindly advice wherein I can best invest, keeping in view the current scenario. Thank you.
Ans: Given your age and investment horizon of 3-5 years, it's crucial to prioritize capital preservation while seeking reasonable returns. Here's a suggested investment strategy:

Debt Funds:

Liquid Funds: Suitable for parking emergency funds or short-term needs. Provides liquidity and better returns than savings accounts.
Short Duration Funds: Ideal for 1-3 years horizon. Offers slightly higher returns than liquid funds with moderate risk.
Hybrid Funds:

Conservative Hybrid Funds: These funds invest 75-90% in debt instruments and the rest in equity. They provide a balance of safety and potential growth.
Fixed Deposits or Senior Citizen Savings Scheme (SCSS):

Fixed Deposits: Choose banks offering higher interest rates for senior citizens.
SCSS: Government-backed scheme with a 5-year tenure, currently offering around 7.4% interest.
Review Existing Investments:

ELSS: As you've already invested in tax-saving ELSS funds, ensure you're comfortable with the lock-in period and align it with your financial goals.
Equity SIPs & Lump Sum: Since equity can be volatile in the short term, consider reviewing your equity holdings. You may want to shift a portion to debt for better stability.
Emergency Fund:

Ensure you have a separate emergency fund equivalent to 6-12 months of your expenses. This fund should be easily accessible without any market risk.
Tax Efficiency:

Given you're a Central Govt Pensioner, consider investing in Tax-Free Bonds or Post Office Monthly Income Scheme (POMIS) for tax-efficient income.
It's essential to diversify across these investment avenues to reduce risk and ensure steady returns. Consult with a financial advisor to tailor this strategy to your specific needs and risk tolerance.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 13, 2024Hindi
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Money
Hello sir can you suggest good option in swp to generate monthly income of 50k atleast in 15 years from now via sip
Ans: o generate a monthly income of 50k in 15 years through SWP (Systematic Withdrawal Plan), you'll need to build a sizable corpus. Here's a suggested approach:

Investment Strategy:

Start a SIP (Systematic Investment Plan) in equity mutual funds with a moderate to high-risk profile to build your corpus over 15 years.
As you near your goal, gradually shift a portion of your investments to debt funds or balanced funds to reduce volatility.
Corpus Calculation:

Using an average annual return of 10% (considering the market's historical average), you would need a corpus of approximately 1.6 crores to generate 50k per month through SWP.
SWP Selection:

Opt for SWP from balanced funds, debt funds, or a mix of both based on your risk appetite.
Ensure the SWP amount is not more than the fund's average returns to avoid depleting your corpus.
Tax Implications:

Remember that SWP from equity funds held for less than 3 years attracts short-term capital gains tax. Funds held for more than 3 years are taxed at 10% without indexation.
SWP from debt funds held for less than 3 years is added to your income and taxed as per your income tax slab. After 3 years, it's taxed at 20% with indexation.
Regular Monitoring:

Periodically review your SWP strategy and make adjustments based on market conditions, fund performance, and your financial needs.
Emergency Fund:

Maintain a separate emergency fund to cover 6-12 months of expenses to avoid premature withdrawals from your investment.
Remember, the above strategy is a general guideline. It's crucial to consult with a financial advisor to tailor the plan according to your financial situation, goals, and risk tolerance.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Money
Sir. I am continuing my sip of 17000 in these mutual fund. 1.parag parikh flexicap dir- 3000 2.icici prudential technology-2000 3.Axis small cap dir-3000 4.Canara robeco small cap-2000 5. Quant small cap-3000 6. Nippon ind small cap-4000 Investment period - 15yr plus Age- 35. Please suggest me for the same.
Ans: Your portfolio has a mix of flexi-cap, sectoral, and small-cap funds, which is good for diversification. Considering your age and investment horizon, here are a few suggestions:

Risk Assessment: Ensure you're comfortable with the risk level, especially with the small-cap funds, which can be volatile but offer high growth potential.

Goal Alignment: Make sure each fund aligns with a specific financial goal. For example, flexi-cap for long-term wealth creation, technology fund for growth in the tech sector, and small-cap funds for higher growth potential but with higher risk.

Portfolio Balance: It might be beneficial to review your portfolio's asset allocation periodically. Ensure you're not too heavily skewed towards one asset class, which can expose you to unnecessary risks.

Performance Review: Regularly monitor the performance of your funds. If a fund consistently underperforms its benchmark or peers, consider replacing it with a better-performing alternative.

Emergency Fund: Before investing, ensure you have an emergency fund set aside to cover 3-6 months of living expenses.

Professional Advice: Consider consulting with a financial advisor for personalized advice tailored to your financial situation and goals.

Overall, your portfolio seems diversified and aligned with your long-term goals. Regular monitoring and adjustments will help you stay on track towards achieving your financial objectives.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Money
My name is Suresh,I started sip Sbi small cap direct growth - 15000/ month Axis small cap fund direct growth - 10000/ month Quant small cap fund -10000/month Paragparikh flexi cap fund-10000/ month Sbi small cap for my retirement I want to continue for 15 years, Axis small cap for my child education for 10 years Quant for my house after 5 years corpus of 50 lakhs house. Parag parikh for my daughter... education she is 6 years old Kindly suggest is porfolia correct?
Ans: Your portfolio seems diversified with a mix of small-cap and flexi-cap funds, which aligns with your different financial goals. However, it's essential to consider a few factors:

Risk Level: Small-cap funds are generally riskier but can offer higher returns. Ensure that you are comfortable with the risk associated with these funds, especially for shorter-term goals like buying a house in 5 years.

Goal Specificity: Each fund should align with a specific goal, as you've outlined. It's good to keep track of the progress towards each goal and adjust your investments if necessary.

Fund Selection: While you've chosen well-known funds, always keep an eye on their performance and consistency. Review them annually or semi-annually to ensure they continue to meet your expectations.

Emergency Fund: Before investing in SIPs for long-term goals, ensure you have an emergency fund equivalent to 3-6 months of expenses.

Review & Rebalance: Regularly review your portfolio's performance and make necessary adjustments to stay on track towards your goals.

Overall, your portfolio appears well-thought-out, but it's crucial to monitor and adjust as needed over time. Consider consulting with a financial advisor periodically for personalized advice.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Money
Hi Sir Sangayya hear from Karnataka my age is 43 from last 3 years I started my SIP details r as below 1 ELSS - 5 sips each 1k 2. Large & mid cap fund - 3 sips 1k each 3. Thematic fund - Franklin India opp - 5k 4. Multi asset allocator - Tata 5k 5.Flexi cap fund - 2 Sips 1k each 6. Dynamic Asset - Edelweiss balanced Adv fund 1k 7. Small cap - Nippon India 1k Total monthly 22k is my investment kindly suggest I want to build my corpus 1cr in another 10 year
Ans: You've made a good start with your SIP investments across various categories. To achieve a corpus of 1 crore in 10 years, you'll need an average annual return of around 12%, considering your current investment of 22k per month.

Here are some suggestions to optimize your portfolio:

ELSS: Great for tax-saving, but remember the lock-in period. Ensure you're comfortable with the fund's performance and risk profile.

Large & Mid-cap: These funds offer a balanced approach. Monitor the performance and consider consolidating into a top-performing fund if necessary.

Thematic Fund: These are more focused and can be riskier. Ensure it aligns with your investment goals and risk tolerance.

Multi-Asset Allocator: Offers diversification across asset classes. A good choice for balanced growth. Ensure the fund's strategy aligns with your goals.

Flexi Cap & Dynamic Asset Allocation: These provide flexibility to invest across market caps and adjust to market conditions. Ensure they complement each other and don't overlap too much.

Small Cap: High growth potential but higher risk. Ensure it fits your risk profile and consider monitoring closely due to higher volatility.

General Recommendations:

Review & Rebalance: Regularly review your portfolio's performance and adjust if necessary. Consider shifting funds to top performers or reallocating based on market conditions.

Risk Assessment: Ensure your portfolio aligns with your risk tolerance and investment horizon.

Costs: Opt for direct plans to reduce costs and improve returns.

Diversification: Ensure your portfolio is well-diversified across asset classes and not overly concentrated in one sector or fund.

Professional Advice: Consider consulting a financial advisor for personalized guidance based on your financial goals and risk profile.

In summary, continue your disciplined approach with SIPs, regularly review and adjust your portfolio, and stay invested for the long term to achieve your goal of 1 crore in 10 years.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Money
Hello sir, I am 42 years old and want to retire by age of 55. My current savings is 303L in EPF. 307L in equity, 9.6L in nps. Investment I does as follows 1. Epf - 45000 by employer and same contribution by me as well which combined around 90000/- 2. 27000/- monthly sip , Nippon small cap 6000, axis small cap 6000, quant infrastructure fund 6000/-, quant small cap 6000/-l miarae asset blue chi large cap 3000/- all started very soon having corpus of 4L as of today. 3. Investing 25000/- in nps monthly. 4. Around 50k monthly in equity I have a liability of 50L home loan which I have planned to get rid off by 2028. I have another home loan which will be closed by end of 2025. I have a daughter which is doing CA and for marriage it will be required around 1 cr. I have a son who are going to persue medical which will cost me 50-75L. How I can plan my retirement to get atleast 3L monthly by age of 55. My current monthly take home salary is 3L around.
Ans: Given your goal to retire by 55 with a monthly income of ?3L, you have a comprehensive plan with a mix of investments and savings. Here's a suggested strategy:

EPF: Continue the contribution as it offers tax benefits and stable returns.

SIPs: Your SIPs in small and large-cap funds are good for growth. Consider adding a diversified equity fund for balance. Monitor and rebalance annually.

NPS: Since you're investing ?25,000 monthly, ensure you choose the auto-choice option for a balanced allocation between equity, corporate bonds, and government securities.

Home Loans: Prioritize closing the higher interest rate loan first while maintaining EMIs for both.

Children’s Education and Marriage: Start separate SIPs or investments earmarked for these goals to reach 1 cr for your daughter's marriage and 50-75L for your son's medical studies.

Emergency Fund: Maintain an emergency fund of at least 6 months' expenses.

Retirement Corpus: Aim to build a corpus that can generate ?3L/month. Based on a conservative estimate, a corpus of around ?6-7 crores by 55 might be needed. Regularly review and adjust your investments to align with this target.

Professional Advice: Consult a financial advisor to fine-tune your plan and ensure you're on track to meet your retirement and other financial goals.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 11, 2024Hindi
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Money
Sir, Below are my investments : a. Gold investment (not jewellery) of 20k per month (current savings is 1.2 lakhs) b. FD of 20 lakhs c. PF savings of 35 lakhs & PPF savings of 15 lakhs d. No rent, I stay in my own house c. SIP of 85k per month (current savings of 3 lakhs) Nippon India Large Cap Fund - 20k Kotak Multicap Fund - 30k HDFC Flexicap Fund - 15k Invesco Smallcap Fund - 10k Bandhan Smallcap Fund - 10k d. Stocks worth 36 lakhs I have 2 kids studying in 10th & 7th standard respectively. Need to fund their education. Just wanted to check if my investment is good enough to take care of my kids higher education (Engineering or Commerce) & have a retirement corpus of approx 3 cr.
Ans: Your portfolio seems well-diversified but review allocation for goals:

Gold: Consider reducing monthly gold investment if education funding is a priority.
Debt: High FD allocation might be conservative for long-term goals like education & retirement.
Equity: SIPs are good, but review fund overlap (multi-cap & flexi-cap) and small-cap weightage (higher risk).
Stocks: Diversification is key, but individual stock selection requires expertise.
Consult a CFP for personalized advice on optimizing your asset allocation based on risk tolerance and specific goals (education timelines, retirement corpus). They can help you strike a balance between stability and growth potential.
Asked on - Apr 15, 2024 | Answered on Apr 15, 2024
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Sir, I have started the SIPs from this month seeking advise from PF Management firm. Also with regards to FD, I have kept the FD (of 20 lakhs) to ensure that I can fall back on this amt incase of any job loss. Any other option you can suggest instead of FD. Do you think a Fixed Income MF will get better returns ?? Any MF you can suggest for long term ?? Also there is a house construction which should start in 3-4 months through which I should get a rent of 50k per month. But will need to clear housing loan for 5 yrs.
Ans: Based on your latest information, here are some insights on your portfolio and suggestions for improvement:

SIPs:

Starting SIPs is a positive step towards your goals. Regularly investing for your children's education and retirement is crucial.
Emergency Fund:

Maintaining an emergency fund like your 20 lakh FD is a wise decision. It provides financial security in case of job loss or unexpected events.
Fixed Income Options:

FDs: While FDs offer guaranteed returns and safety, their interest rates may not always outpace inflation.

Fixed Income Mutual Funds: These can be an alternative. They invest in bonds and debt instruments, offering potentially higher returns than FDs but with slightly more risk. However, they are still considered less volatile than equity funds.

Here are some factors to consider when choosing Fixed Income MFs:

Investment Horizon: Match the fund's maturity with your goals. Short-term debt funds might be suitable for education needs within 5-7 years.
Credit Quality: Invest in funds with good credit quality (low risk of default) to balance returns and stability.
Specific Fund Recommendations are difficult:

It's best to consult a Certified Financial Planner (CFP) for personalized recommendations. They consider your risk tolerance and specific goals when suggesting funds.
House Construction Loan & Future Rent:

The upcoming rental income can help offset your housing loan EMIs, easing your financial burden.
Portfolio Review & Optimization:

Gold Investment: Revisit your monthly gold investment (20k). Consider reducing it if prioritizing education funding, as gold's returns might not keep pace with education costs.

Debt Allocation: The 20 lakh FD and potentially high allocation to debt funds in your SIPs might be too conservative for long-term goals like education (10-15 years) and retirement (20+ years).

Equity SIP Overlap: Review your SIPs (Nippon India Large Cap, Kotak Multicap, HDFC Flexi Cap) for overlap. Consider merging similar fund categories to simplify your portfolio.

Small-Cap Weightage: Small-cap funds (Invesco & Bandhan) carry higher risk. Assess your risk tolerance and adjust allocation if needed.

Stock Selection: Diversification is key in stock selection. Holding individual stocks requires in-depth research and monitoring. Consider a professionally managed equity mutual fund for broader exposure.

Consulting a CFP:

A CFP can create a personalized plan considering your:

Risk tolerance
Specific goals (education timelines, retirement corpus)
Investment horizon for each goal
They can help you optimize your asset allocation across equity, debt, and gold to achieve your financial goals.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 15, 2024Hindi
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Money
Hi, I am 25 years old working in a MNC. Earning arround 65k excluding taxes in Bangalore + some shift, yearly bonus etc. avg hike 20%(not every year only hike 15% promotion 25% like that). I also earn 40-50k as part time few months not every month. My living cost is arround 20-25k per month I have to give my family arround 20k per month needs full fill I use arround 30k per year like phone laptop electronic (increase 20% yearly). How much should I save to retire at the age of 45? I am not married. Have arround 12L+ in savings 70% equity and 30% debt. I plan to buy a car in 2 year and marriage, also family planning.
Ans: Here's a breakdown to help you estimate how much you can save towards retirement at 45, considering your current situation and future plans:

Income:

Monthly Salary (excluding taxes): ?65,000 (approx.)
Yearly Bonus (average): Let's assume a conservative estimate of 1 month's salary (?65,000)
Part-time Income (average monthly): ?45,000 (considering the range)
Total Average Monthly Income:

(?65,000 + ?45,000)/12 + ?65,000/12 ≈ ?91,667

Expenses:

Living Costs: ?25,000
Family Support: ?20,000
Electronics (Yearly): ?30,000/12 = ?2,500 (monthly)
Total Average Monthly Expenses: ?47,500

Savings Potential:

?91,667 (Monthly Income) - ?47,500 (Monthly Expenses) ≈ ?44,167

Important Considerations:

Future Expenses: You plan to buy a car in 2 years, get married, and potentially start a family. These will significantly impact your savings. Factor in estimated costs for these events.
Inflation: Inflation will erode the purchasing power of your savings over time. Consider an inflation rate of 5-6% while calculating your retirement corpus.
Here's a suggestive approach:

Emergency Fund: Aim for 3-6 months of living expenses as an emergency fund. With your current expenses, this could be ?1.42 lakh to ?2.84 lakh.
Retirement Savings: Focus on maximizing retirement savings after building your emergency fund. You have a 15-year horizon (45 - 25 = 20 years, minus 5 years for planning major expenses). Investment advisors generally recommend saving 15-20% of your income for retirement. With your potential savings of around ?44,167, consider allocating a significant portion (around ?6,600 to ?8,800 monthly) towards retirement funds. You can adjust this based on your risk tolerance and future financial goals.
Investment Strategy: Since you have a long investment horizon, you can consider an equity-heavy approach for your retirement savings (70-80% equity). However, as you approach retirement, gradually shift towards a more balanced allocation with debt instruments to reduce volatility.
Retirement Corpus Estimation (using a simplified formula):

Corpus = (Retirement Age - Current Age) * Annual Expenses * Inflation Adjusted Factor

Assumptions:

Retirement Age: 45
Current Age: 25
Annual Expenses (adjusted for inflation at 5% for 20 years): Let's assume your expenses grow at the same rate as inflation, leading to an annual expense of ?3.78 lakh at retirement (?25,000 * 1.05 ^ 20)
Inflation Adjusted Factor (assuming a withdrawal rate of 4% and investment return slightly exceeding inflation): 25
Estimated Corpus: ?3.78 lakh/year * 25 ≈ ?9.45 crore

Note: This is a simplified estimation and doesn't account for future income growth, investment returns,

Recommendations:

Create a Budget: Track your income and expenses to identify areas for saving.
Automate Savings: Set up SIP (Systematic Investment Plan) for mutual funds to automate your retirement savings.
Seek Professional Advice: Consider consulting a Certified Financial Planner (CFP) for personalized financial planning based on your specific goals and risk tolerance. A CFP can help you create a comprehensive retirement plan considering your future expenses, investment strategy, and overall financial situation.
CFPs are financial advisors who have rigorous training and experience in financial planning. They are held to a high ethical standard and are required to act in their clients' best interests. Consulting a CFP can ensure you receive sound financial advice tailored to your unique needs and aspirations.

By being proactive with your savings and investments, you can work towards achieving your retirement goals at 45. Remember, this is a journey, and you might need to adjust your plan as your life progresses.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 11, 2024Hindi
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Money
With this can I look at a retirement age of 55 yrs with the desired corpus and kids education.
Ans: Achieving financial security and planning for retirement and your children's education with a monthly income of 22k is challenging, but with disciplined saving and investing, it's possible to work towards your goals. Here's how you can plan:

Retirement Planning:

Invest Early: Start investing in Retirement Funds or National Pension System (NPS) which offer tax benefits and provide a corpus for retirement.
SIPs: Invest in Equity Mutual Funds through SIPs for long-term growth. Equity investments have the potential to offer higher returns over the long term.
Increase Investments: As your income increases, increase your investments proportionally to reach your retirement corpus goal.
Children's Education:

Education Funds: Continue investing in Sukanya Samriddhi Yojana (SSY) or Public Provident Fund (PPF) for your children's education.
Educational Loans: Encourage your children to apply for scholarships and consider educational loans for higher studies. This will reduce the burden on your finances.
Expense Management:

Budgeting: Stick to a strict budget and avoid unnecessary expenses.
Cost-effective Investments: Choose investments with low expense ratios and avoid high-cost funds.
Review and Adjust:

Annual Review: Review your investments and financial plan annually. Adjust your investments based on your financial situation, market conditions, and investment goals.
Consult a Financial Advisor: Consider consulting a financial advisor to create a personalized financial plan tailored to your needs.
Additional Income:

Side Income: Explore opportunities for additional income through part-time jobs, freelancing, or starting a small business.
Considering your age and income, it's essential to set realistic goals. You may not achieve a significant corpus by the age of 55 with a monthly income of 22k, but consistent saving and investing can help you build a comfortable retirement corpus and fund your children's education.

Remember, financial planning is a long-term commitment. Stay disciplined, be patient, and regularly review your plan to ensure you're on track to achieve your goals.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 15, 2024Hindi
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Money
Hi sir M 34 years old and my income is just 22k help me how to plan and save for my kids and education one is 7yrs old and one is 5yrs old and m leaving in rented house till now no investment nothing pls guide me as m going down day by day and not able to concentrate on anything and help me planning financially as i want to educate my kids well and how to invest for more income and any scholarship also let me know
Ans: I understand your concerns about financial planning, especially with the responsibility of your children's education on your shoulders. Here's a simplified plan to help you get started:

Emergency Fund: Start by building an emergency fund. Aim to save at least 3-6 months' worth of expenses. This fund will provide a safety net in case of unexpected expenses or job loss.

Budgeting: Create a monthly budget to track your income and expenses. This will help you identify areas where you can cut back on expenses and save more.

Children's Education: For your children's education, consider investing in a Sukanya Samriddhi Yojana (SSY) or Public Provident Fund (PPF). These are government-backed schemes with tax benefits that can help you save for their future education.

Investments: With a monthly income of 22k, it's crucial to start small but consistent investments. Look for Systematic Investment Plans (SIPs) in mutual funds that align with your risk tolerance and investment goals. Even a small amount invested regularly can grow significantly over time.

Scholarships: Research and apply for scholarships for your children. Many organizations and educational institutions offer scholarships based on merit or financial need.

Rental House: While renting provides flexibility, consider your long-term housing needs. If possible, start saving for a down payment on a house. Owning a home can provide stability and serve as an investment for the future.

Additional Income: Explore ways to increase your income, such as taking up a part-time job or freelancing. Every extra rupee can make a difference in your savings and investments.

Remember, financial planning is a journey, not a destination. Start small, stay consistent, and review your plan regularly to make necessary adjustments. Seek advice from a financial advisor if needed to tailor a plan that suits your specific situation and goals.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

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Hi sir, i have a 15yr investment horizon. I invest 20k/month in quant small cap, 10k/per month in Aditya Birla PSU Fund, 3k/month in SBI contra fund and 2k/month in axis small cap. And intermittently on Quant Infrastructure MF. Please let me know if the Mutual Fund portfolio is ok
Ans: I can provide some general observations based on your investment horizon and chosen funds.

Here's a breakdown of your portfolio:

Quant Small Cap Fund (20k/month): Invests in small-cap companies, which can offer high growth potential but also carry higher risk.
Aditya Birla PSU Fund (10k/month): Focuses on Public Sector Undertakings (PSUs), which can provide stability but may have lower growth prospects compared to broader markets.
SBI Contra Fund (3k/month): Aims to profit from both rising and falling markets, but these funds can be complex and require in-depth understanding.
Axis Small Cap Fund (2k/month): Similar to Quant Small Cap Fund, but with a different investment strategy for small companies.
Quant Infrastructure MF (intermittent): Invests in infrastructure companies, a sector with specific risks and opportunities.
General observations for a 15-year horizon:

Equity allocation: A large portion of your portfolio is in small-cap funds, which can be suitable for a long-term horizon but come with inherent volatility. Consider your risk tolerance for this concentration.
Diversification: You have some diversification across sectors (PSU, small-cap, infrastructure), but it might be beneficial to consider including a large/mid-cap fund or an index fund for broader market exposure.
Actively managed funds: Your portfolio consists of actively managed funds. These can outperform the market, but also underperform. Consider the expense ratios of these funds and how they compare to passively managed index funds.
Recommendations:

Review your risk tolerance: Ensure you're comfortable with the potential volatility of your current portfolio allocation, especially in small-cap funds.
Consider diversification: Explore adding large/mid-cap or index funds for a more balanced approach.
Research and evaluate: Research each of your fund choices to understand their investment objectives, holdings, and performance history.
Remember: This is just general information, not personalized advice. It's advisable to consult an AMFI Regd Mutual Fund distributor who can consider your specific financial goals, risk tolerance, and overall investment strategy. They can help you determine if your portfolio aligns with your needs for a 15-year investment horizon.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 15, 2024Hindi
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Sir am 33 year old.. current taking salary of 75k net per month..and having car loan of 14 k and SIP of 8.5 k .need to save for child future,please suggest
Ans: Here are some suggestions on how you can save for your child's future with a monthly income of ?75,000, a car loan of ?14,000, and an existing SIP of ?8,500:

Analyze your current spending:

Track your expenses for a month to understand where your money goes. This will help you identify areas where you can cut back and free up additional savings for your child.
Revisit your car loan:

If possible, consider refinancing your car loan to a lower interest rate. This can free up some money each month that you can then redirect towards your child's savings.
Optimize your SIP:

Review your existing SIP and ensure it aligns with your child's future goals and your risk tolerance. You may want to consider increasing the SIP amount if there's room in your budget after accounting for other expenses.
Prioritize Child Savings:

Once you have a better understanding of your spending and have potentially reduced your car loan outgo or optimized your SIP, allocate a specific amount towards your child's savings.
Investment options for your child's future:
1. Increase Existing SIP:

Consider increasing your existing SIP in the well-diversified equity mutual fund by ?3,500 per month. This brings your total SIP contribution to ?12,000 per month. This focuses on long-term growth for your child's future.
2. Diversification with Debt Fund:

Start a new SIP in a low-risk debt fund with ?3,000 per month. This provides stability and helps manage short-term financial needs your child might have. You can choose a short-term or medium-term debt fund based on your preference for when your child might need the money.
Benefits of this approach:

Flexibility: This approach allows you to manage growth and stability within your child's savings plan. The equity SIP focuses on long-term growth, while the debt SIP provides a buffer for immediate needs.
Control: You have more control over the asset allocation. You can adjust the SIP amounts in each fund as your child grows and their financial goals become clearer.
Cost-effective: Avoiding ULIPs eliminates high fees associated with those products. Regular mutual funds generally have lower expense ratios.
Additional Tips:

Review and Rebalance: Regularly review your investment strategy and rebalance the portfolio (equity vs. debt) if needed, to maintain your desired asset allocation.
Start Early, Invest Regularly: Even small increases in SIP contributions can make a significant difference over time due to compounding.
Consider PPF or Sukanya Samriddhi (if applicable): If you're in India, explore options like Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (for girl child) for additional tax benefits and safe, guaranteed returns.
Remember:

Consult a financial advisor for personalized advice considering your risk tolerance and your child's age and goals.
They can recommend specific mutual funds based on your investment goals and risk profile.
By following these steps and consulting a professional, you can build a strong foundation for your child's financial future.
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Ramalingam

Ramalingam Kalirajan  |460 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 15, 2024

Asked by Anonymous - Apr 15, 2024Hindi
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I will retire in 3 years with a pension of 1L. I want to set up 2 SWPs with one 1Cr, 50L in each to support my son throughout his life. He is an art critic and may not be getting regular income. Can I have HDFC BAF and SBI long term equity fund ?
Ans: The funds you've chosen, HDFC Balanced Advantage Fund (HDFC BAF) and SBI Long Term Equity Fund, can be a good starting point for your son's situation, but there are a few things to consider:

Diversification within your chosen options:

Both HDFC BAF and SBI Long Term Equity Fund invest in equities, though HDFC BAF also has a debt component. This means they are both susceptible to stock market fluctuations. While SBI Long Term Equity Fund aims for long-term growth, there can still be volatility in the short term.
Considering your son's situation:

Art critic income: Since your son's income may be irregular, having some stability in the SWP (Systematic Withdrawal Plan) could be beneficial. HDFC BAF with its debt component might offer a more stable withdrawal compared to SBI Long Term Equity Fund which is purely equity based.
Alternatives for diversification:

Debt funds: To provide more stability, consider adding a debt fund to the mix. This would lower the overall risk profile of the portfolio.
Hybrid funds: You could explore other balanced advantage funds or aggressive hybrid funds that offer a mix of equity and debt with a growth bias.
Here's a recommendation to consider:

1 SWP from HDFC BAF: This can provide some stability with the debt component.
1 SWP from a Debt Fund: This would provide a more regular income stream. You can choose a short or medium-term debt fund based on your son's risk appetite and how soon he might need the money.
Remember:

This is a general recommendation, and it's always best to consult a financial advisor for personalized advice considering your son's risk tolerance, financial goals, and investment timeline.
An advisor can help you with the asset allocation between the chosen funds and tailor the SWP amounts based on your son's needs.
Here are some resources that can help you do further research:

Balanced Advantage Funds: https://www.etmoney.com/mutual-funds/hybrid/dynamic-asset-allocation/74
Debt Funds: https://www.investopedia.com/terms/d/debtfund.asp
SWP in Mutual Funds: https://www.investopedia.com/articles/retirement/09/systematic-withdrawal-plan-work-for-you.asp
Asked on - Apr 15, 2024 | Answered on Apr 15, 2024
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Thank you so much for the reply and the concern. In addition HDFC BAF, can i choose ICICI prudential equity and debt fund or a pure debt fund ?
Ans: While I can't provide specific investment advice, I can offer some general guidance and resources to help you make informed decisions.

Here's why it's not advisable to recommend specific schemes in an online forum:

Individual circumstances: Your investment goals, risk tolerance, and financial situation all influence suitable investment choices. What works for one person might not be ideal for you.
Scheme details: Mutual fund schemes can change their investment strategies over time. Up-to-date information is crucial for informed decisions, and some details might not be readily available in a forum setting.
What can I do to help?

Consider your investment goals: Are you looking for capital appreciation (growth), regular income (debt funds), or a balance of both (hybrid funds)?
Assess your risk tolerance: How much fluctuation in your investment value are you comfortable with? Equity funds tend to be more volatile than debt funds.
Research potential mutual funds: Look at the fund's fact sheet, investment objective, expense ratio, past performance (remember past performance is not a guarantee of future results), and the reputation of the fund house.
Consult an AMFI regn Mutual Fund Distributor. They can consider your specific needs and recommend suitable investment options based on your risk profile and goals.

By following these steps, you'll be well on your way to making informed investment decisions based on your own needs and circumstances.
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