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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

I'm having 35L lumpsum. Please suggest investment strategies to make it to 1CR in roughly 5 YEARS or before. Experienced & Professionals please suggest. I need help. Please.???? Your valuable insights & suggestions are MOST WELCOME. THANKS IN ADVANCE. KINDLY HELP ????????????

Ans: let's approach this with a realistic perspective. Achieving a 1 crore target in just 5 years from a 35 lakh lump sum is quite ambitious and may involve high-risk strategies. It's essential to understand that aiming for quick riches often leads to disappointment and potential loss of principal.

Instead of chasing unrealistic targets, focus on sustainable wealth-building strategies. Consider allocating your lump sum across a diversified portfolio of assets such as equity mutual funds, debt instruments, and possibly some exposure to real estate investment trusts (REITs) or gold ETFs for stability.

Aiming for a reasonable annualized return of around 12-15% is more realistic over the long term. Remember, slow and steady wins the race in wealth accumulation. Avoid falling for get-rich-quick schemes or high-risk investments promising unrealistically high returns.

Prioritize your financial goals, whether it's wealth creation, retirement planning, or other objectives, and tailor your investment strategy accordingly. Consult with a certified financial planner to create a personalized investment plan aligned with your risk tolerance and financial objectives.

In conclusion, while it may not be feasible to achieve a 1 crore target in just 5 years with a 35 lakh investment, adopting a disciplined and diversified approach to investing can help you steadily build wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Sundeep - May 07, 2024Hindi

Hello Jinal, greetings, I have been investigating in the below funds. Please let me know whether I should continue my SIP of 40K in these below funds for next 10,15,20 years. Investing since Apr 2023. Age 33, goals: retirement, children education and marriage. Funds: 1. Axis growth opportunities direct fund. 2. DSP Value fund direct. 3. SBI multi cap direct fund. 4. PPFAS flexi cap direct fund. 5. Quant tax saver fund direct. Reason to choose these funds to get diversified categories as well as international exposure. Adding more, like each funds strategies are different from each other.

Ans: It's great to see your commitment to long-term financial planning! Your chosen funds indeed offer a well-rounded portfolio catering to various investment objectives. Each fund's distinct strategy enhances diversification, mitigating risk and maximizing returns over time.

Axis Growth Opportunities fund provides exposure to high-growth potential companies, aligning with long-term wealth accumulation goals. DSP Value fund, focusing on undervalued stocks, adds stability to your portfolio, crucial for achieving financial milestones like children's education and marriage.

SBI Multi Cap fund's flexibility in investing across market caps ensures adaptability to market dynamics, essential for sustained growth. PPFAS Flexi Cap fund's international exposure offers a hedge against domestic market volatility, fostering global wealth creation opportunities.

Quant Tax Saver fund not only aids in tax efficiency but also provides a unique investment approach, complementing the other funds' strategies. However, it's vital to monitor fund performance periodically and rebalance if necessary to stay aligned with your goals.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Remember, investing is a marathon, not a sprint. Stay disciplined, and trust the process. Your dedication to systematic investment will yield significant results over the years, securing a comfortable future for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Sundeep - May 07, 2024Hindi

Hello Sir, greetings, I have been investigating in the below funds. Please let me know whether I should continue my SIP of 40K in these below funds for next 10,15,20 years. Investing since Apr 2023. Age 33, goals: retirement, children education and marriage. Funds: 1. Axis growth opportunities direct fund. 2. DSP Value fund direct. 3. SBI multi cap direct fund. 4. PPFAS flexi cap direct fund. 5. Quant tax saver fund direct. Reason to choose these funds to get diversified categories as well as international exposure. Adding more, like each funds strategies are different from each other.

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Money

Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Atish - May 06, 2024Hindi

Hi I'm Atish, I want to invest a lumpsum of 3lakhs in which fund I should invest please guide.

Ans: Hello Atish,

Investing a lump sum of 3 lakhs requires careful consideration of your financial goals, risk tolerance, and investment horizon. Here's a suggestion on where you could invest:

Given the current market conditions and your investment horizon, consider allocating your lump sum across a diversified portfolio of mutual funds. Since you're investing a significant amount at once, it's crucial to mitigate risk by spreading your investments across different asset classes.

You can consider investing in a combination of large-cap, mid-cap, and multi-cap equity funds to capture growth opportunities across market segments. Additionally, allocating a portion to debt funds can provide stability to your portfolio and reduce overall volatility.

Look for mutual funds with a proven track record of consistent performance, low expense ratios, and experienced fund managers. Consider funds that align with your investment goals and risk appetite.

Before making any investment decisions, it's advisable to consult with a Certified Financial Planner who can assess your financial situation, goals, and risk tolerance. They can help you design a personalized investment strategy and select suitable mutual funds to achieve your objectives.

Remember to review your investments periodically and make adjustments as needed to stay on track towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Karthik - May 11, 2024Hindi

Hi sir I started my investment in dsp mutual fund with 11,000 from July 2023 and in Bank of India mutual fund in small flexi and multi cap 4000 each every month from December what could be me return after 15 years

Ans: Predicting the exact returns of mutual fund investments over 15 years is challenging due to market uncertainties. However, we can estimate potential returns based on historical performance and certain assumptions.

DSP Mutual Fund and Bank of India Mutual Fund offer a range of equity-oriented funds, which historically have provided higher returns over the long term compared to fixed-income investments.

Assuming an average annual return of 12% for DSP Mutual Fund and 10% for Bank of India Mutual Fund, which are reasonable estimates based on historical market performance, we can project the future value of your investments.

Considering your monthly investments of 11,000 in DSP Mutual Fund and 8,000 (4,000 each) in Bank of India Mutual Fund, let's calculate the future value using a mutual fund calculator.

After 15 years, your investments could potentially grow substantially, providing a significant corpus for your financial goals. However, it's essential to review and adjust your investments periodically based on market conditions and your financial objectives.

Keep in mind that these are projections based on historical data and assumptions. Actual returns may vary depending on market performance and other factors. It's advisable to consult with a Certified Financial Planner for personalized investment advice tailored to your specific needs and goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 11, 2024Hindi

Hi sir I am 58 years old. I never invested any stock market or shares or any such market funds I was working in gulf country. Earned around 8cr . Now all in fixed deposits. I was busy during my job time. I was only concentrate my jobs .now I want advice how to invest on My atleast half amount MF smilar funds. I also invested realestate around 25 years back. Now all got good appreciation. I have 2daughter and one son.daughters are earning good salary. Son studying.no loan or no commitment . Please advice how I can invest on MF stock linked market so I can make enough better growth than fixed deposits

Ans: It's commendable that you're considering diversifying your investments beyond fixed deposits, especially given the potential for higher returns in the stock market. Let's explore how you can begin investing in mutual funds (MF) and similar funds with a portion of your wealth.

Since you're new to the stock market and MFs, it's wise to start with a conservative approach. Consider investing a portion of your fixed deposits into balanced funds or equity-oriented hybrid funds. These funds offer a mix of equity and debt instruments, providing growth potential while mitigating risk.

Given your substantial corpus, you have the flexibility to invest in a diversified portfolio of mutual funds across different categories. Allocate funds based on your risk tolerance, financial goals, and investment horizon.

For long-term wealth creation, equity mutual funds, particularly large-cap and multi-cap funds, can be suitable. These funds invest in well-established companies with strong growth potential, offering the possibility of higher returns over time.

Consider investing systematically through Systematic Investment Plans (SIPs), which allow you to invest a fixed amount regularly. SIPs help in rupee-cost averaging and reduce the impact of market volatility on your investments.

Since you have no immediate financial commitments and your children are financially independent, you can afford to take a long-term view with your investments. Focus on staying invested for the long haul to benefit from the power of compounding.

However, it's crucial to consult with a Certified Financial Planner who can assess your financial situation, risk appetite, and investment objectives. They can help you devise a personalized investment strategy and guide you through the process of investing in mutual funds.

In conclusion, by diversifying a portion of your wealth into mutual funds, you can potentially achieve higher growth than fixed deposits over the long term. With careful planning and professional guidance, you can navigate the complexities of the stock market and work towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

Hi i am 42 yrs i am govt servent going to retire at 58 currently my salary 60pm from last one years i started investing in mutual fund 10k in nippon small cap 5k in sbi large and small cap and this years started 5k in nippon flexi cap fund currently i hav 24lac in ppf account also need to make small home for that i need 40 lac suggest me some should i take home lone or use my savings for that

Ans: Considering your retirement in 16 years and your current investment in mutual funds and PPF, let's analyze your options for purchasing a home.

You're off to a good start with your mutual fund investments, providing potential growth over the long term. However, investing in equity funds for a short-term goal like buying a house carries risk due to market fluctuations.

Given your timeline and the need for 40 lac for a home, it's prudent to explore multiple avenues. Utilizing your savings in PPF is an option, but it might not cover the entire cost.

Taking a home loan could be a viable solution. It allows you to preserve your savings and spread the cost of the house over a longer period. However, consider the loan's interest rate, tenure, and your ability to repay post-retirement.

Alternatively, you could partially fund the home with your savings and take a smaller home loan, reducing the burden of EMIs post-retirement. This approach offers a balance between utilizing savings and leveraging loans.

Consult with a Certified Financial Planner to assess your risk tolerance, evaluate loan options, and devise a suitable strategy aligned with your financial goals and retirement plans.

In summary, weigh the pros and cons of using savings versus taking a home loan, considering factors like interest rates, repayment capacity, and post-retirement income. With careful planning, you can achieve your goal of owning a home while safeguarding your financial future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

Sur, I invested recently in MF Edelweiss Technology Fund Reg Gr and it is going downwards regularly. Pl advise weather to continue or shift to other fund

Ans: I understand you're concerned about your Edelweiss Technology Fund investment going down. Market fluctuations are normal, so let's take a step back and assess!

Focus on Long-term: Did you choose this fund for a long-term goal (like retirement)? Short-term dips shouldn't derail your plan if the fund aligns with your goals.

Review Investment Plan: Did you discuss your risk tolerance with a Certified Financial Planner (CFP)? Technology funds can be volatile, so ensure it matches your risk profile.

Stay Calm & Diversified: Don't panic-sell! A diversified portfolio helps manage volatility. Consider this a learning experience.

If you're unsure, consulting a CFP can help. They can assess your entire portfolio and recommend if switching funds is suitable for your situation.

Remember, patience is key in investing!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Satish - Apr 30, 2024Hindi

Post life Insurance policy benefits bonus questions

Ans: Life insurance policies typically offer bonuses on top of the death benefit. These bonuses can be:

Maturity bonuses: Paid if you survive the policy term.
Loyalty bonuses: Rewarded for staying with the insurer for a long time.
Terminal bonuses: A one-time bonus paid upon death or policy maturity.
The amount and type of bonus depend on the specific policy and insurer.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

Hello sir, my question is like stocks, can we watch Mutual Funds live every day along with stocks G S Kumar

Ans: No, unlike stocks, you cannot watch Mutual Funds "live" every day like you can with stocks. Here's why:

Trading Frequency: Mutual funds are typically traded only once a day, at the Net Asset Value (NAV) calculated after the market closes. Stocks, on the other hand, trade continuously throughout the trading day, so their price fluctuates constantly.

NAV Calculation: The NAV of a mutual fund reflects the underlying value of all the assets it holds (stocks, bonds, etc.). This value is calculated only after the market closes when the final prices of those assets are known.

However, you can still track the performance of your mutual funds regularly. Here are some ways:

Mutual Fund Websites: Most mutual fund companies update their websites daily with the NAV of their schemes. You can find the latest NAV for your funds there.

Investment platforms: If you invest through an online investment platform, they will typically display the latest NAV of your holdings within their interface.

Financial News Websites: Many financial news websites provide mutual fund quotes, although these might not be the most up-to-date NAV.

While you can't watch mutual funds live, tracking their NAV daily isn't necessary. Focus on your long-term investment goals and avoid making impulsive decisions based on short-term fluctuations.

Here are some additional points to remember:

Focus on Long-Term: Mutual funds are meant for long-term wealth creation. Don't get caught up in daily NAV movements.
Periodic Reviews: Regularly review your mutual fund portfolio (quarterly or annually) to ensure it aligns with your goals.
Professional Guidance: Consider consulting a Certified Financial Planner (CFP) for personalized investment advice.
I hope this explanation clarifies the difference between tracking stocks and mutual funds.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

Hi I am 24 years old and currently earning 51k per month and getting increase by 15% per year. I have savings of 5 lac and I would like to create a corpus of 1 crore by 2030. My mother is suffering from arthritis and her condition is good but medicines will continue. I am seeking for a medical policy for her but unfortunately, companies are not ready to provide. What will be the best way to have a good medical policy for her along with my goal of 1 cr corpus?

Ans: Creating a corpus of 1 crore by 2030 while ensuring a good medical policy for your mother is crucial. Given the difficulty in obtaining a policy due to her arthritis, let's evaluate options.

Firstly, let's address your goal. With your current salary and annual increment, achieving a corpus of 1 crore by 2030 is feasible. Regularly invest a portion of your income in diversified portfolios managed by a Certified Financial Planner.

Regarding your mother's medical needs, since companies are hesitant to provide policies, consider setting aside a portion of your savings as a medical contingency fund. This fund can cover her ongoing medication expenses and any unforeseen medical emergencies.

Additionally, explore alternative avenues such as group medical insurance policies offered by professional associations or government schemes catering to senior citizens. These options might provide coverage despite her pre-existing condition.

While it's challenging to find a suitable medical policy, it's essential to remain proactive and explore all available options. Consult with a Certified Financial Planner to tailor a financial plan that accommodates both your investment goals and your mother's healthcare needs.

In conclusion, achieving your financial goals while ensuring your mother's well-being requires careful planning and consideration of various options. Stay diligent, and with the right strategy, you can navigate these challenges successfully.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 06, 2024Hindi

I'm 27 years old and my monthly salary is 50k. I started investing in MF via SIP of around 20k monthly and its been 3 months now. I have also started an emergency fund and I have around 20-30k in that fund. I pay roughly 9k on rent, 10k on EMIs which will be over in 4 months and I spend roughly 8-10k on groceries, transport, utilities etc. I wish to build a corpus of around 50 lacs - 1 cr by the time i get married when I turn 35. How should I continue investing and how can i achieve my goal?

Ans: It's commendable that you've started investing at a young age and have already begun building an emergency fund. Let's outline a plan to help you achieve your financial goal of building a corpus of 50 lakhs to 1 crore by the time you turn 35.

Review Current Investments: Continue your SIP investments in mutual funds as you've been doing. Since you're comfortable with a monthly SIP of 20k, ensure that the funds you've chosen align with your risk tolerance and long-term financial goals.

Increase Savings: As your income grows or expenses decrease (such as after paying off your EMIs in 4 months), consider increasing your monthly SIP contributions. Aim to allocate a higher percentage of your salary towards investments while maintaining a healthy balance for living expenses and savings.

Diversify Portfolio: While SIPs are a great way to invest systematically, consider diversifying your investment portfolio by exploring other asset classes such as equity, debt, and possibly real estate in the future. Diversification helps spread risk and maximize returns over the long term.

Monitor and Rebalance: Regularly review the performance of your investments and make adjustments as needed. Rebalance your portfolio periodically to ensure it remains aligned with your financial goals and risk tolerance.

Emergency Fund: Continue building your emergency fund until it reaches at least 6-12 months' worth of living expenses. This fund will provide a financial safety net in case of unexpected expenses or job loss.

Set Milestones: Break down your financial goal of 50 lakhs to 1 crore by age 35 into smaller, achievable milestones. Set targets for each year or every few years to track your progress and stay motivated.

Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized guidance based on your financial situation and goals. They can help you create a customized financial plan and provide recommendations for achieving your target corpus.

By staying disciplined in your savings and investment approach, increasing your contributions over time, and periodically reviewing your portfolio, you can work towards achieving your goal of building a significant corpus by the time you get married.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 05, 2024Hindi

Hi, I am 35 old with having private sector job. I had savings about 2L from RD, but during job seeking it is uitlized fully. Now again started job 6 months back with in hand 55K. I have savings of SIP (inclusive profits ) upto 5.8L, and RD of 56K, NPS around 2.9L (inclusiv profits). having NO FD. RD, SIP & NPS is stopped from 1.5 years back. I am planning to invest in land for home which cost around 33L for 9Months period. So, here will have to pay 25% amount for first month to land owner, and will need to pay continue from salary about 40K for remaining 9 months. Have some gold during marriage. so it may give upto 1.5L. After 9 months completed, will take property/land loan with monthly EMI of 40K to 50K. Request some suggestion for financial management and new savings idea.

Ans: It sounds like you're navigating a significant transition period with your job and housing plans. Let's outline some steps for your financial management and explore new savings ideas.

Evaluate Current Finances: Firstly, assess your current financial situation, including your savings, investments, and liabilities. Understand your cash flow and expenses to make informed decisions.

Budgeting: Develop a monthly budget considering your income, expenses, and savings goals. Allocate funds for essential expenses, loan EMIs, and savings for your future goals, including the land purchase and eventual home loan EMIs.

Emergency Fund: Prioritize building an emergency fund to cover unexpected expenses or financial emergencies. Aim to set aside at least three to six months' worth of living expenses in a liquid savings account.

Resume SIPs and NPS Contributions: Consider restarting your SIPs and NPS contributions to continue building your investment portfolio for long-term financial security. These systematic investments can help you accumulate wealth over time.

Land Purchase: Since you're planning to invest in land for a home, ensure thorough due diligence before proceeding. Evaluate factors like location, legal clearances, and future development prospects. Negotiate payment terms that align with your financial capabilities.

Loan Planning: When taking a property/land loan after nine months, ensure you're comfortable with the EMI payments and factor them into your budget. Compare loan options from different lenders to secure the best terms and interest rates.

Gold Assets: While gold can provide liquidity, consider diversifying your investments into other asset classes for long-term growth potential. Review your gold holdings periodically and decide whether to continue holding or liquidate based on your financial goals.

New Savings Ideas: Explore additional avenues for savings and investments, such as:

Tax-saving investments like Equity Linked Savings Schemes (ELSS) or Public Provident Fund (PPF).
Regular contributions to a retirement corpus through schemes like the National Pension System (NPS) or Voluntary Provident Fund (VPF).
Building a diversified investment portfolio with a mix of equity mutual funds, debt instruments, and possibly real estate investment trusts (REITs) for added diversification.
Remember to consult with a financial advisor to tailor a plan that aligns with your specific financial goals and risk tolerance. Stay disciplined in your savings and investment approach to achieve long-term financial stability and security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Ramkumar - May 05, 2024Hindi

I am 52, SIP in MF or stocks will grow most in next 6 years

Ans: Considering your age and the relatively shorter time horizon of six years, Mutual Funds (MFs) appear to be a more suitable option for potential growth compared to individual stocks.

Mutual Funds offer diversification across a basket of securities, reducing the risk associated with investing in individual stocks. With professional fund management, MFs aim to deliver optimal returns while managing risk effectively.

Moreover, MFs offer a range of options catering to various risk appetites and investment goals. You can choose from equity funds, debt funds, balanced funds, etc., based on your risk tolerance and financial objectives.

Additionally, MFs provide liquidity, allowing you to easily buy and sell units as needed. This liquidity feature is particularly beneficial if you anticipate needing access to your funds within the next six years.

Furthermore, MFs offer the advantage of SIPs (Systematic Investment Plans), enabling you to invest regularly over time, which can potentially help mitigate the impact of market volatility through rupee-cost averaging.

While individual stocks may offer the potential for higher returns, they also come with higher risks, especially in a relatively short six-year timeframe. Stock prices can be volatile and subject to market fluctuations, making it challenging to predict consistent returns within a short period.

In summary, Mutual Funds offer a balanced approach to investment, combining diversification, professional management, liquidity, and the convenience of SIPs, making them a preferable choice for potential growth over the next six years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 03, 2024Hindi

Hi Sir Kindly review my SIP . I have SIP in UTI NIFTY 50 index fund of rs 10000, parag Parikh flexi cap fund of rs 5000, bandhan nifty 50 index fund of rs 14000 , quant small cap fund of rs 1000. Please suggest if any modifications are required.

Ans: It's great to see you investing through SIPs, a disciplined approach towards wealth creation. Let's review your portfolio and make some suggestions.

Starting with UTI NIFTY 50 Index Fund, investing in a broad market index like NIFTY 50 can provide exposure to the overall performance of the Indian equity market. It's a good choice for passive investors seeking market returns.

Parag Parikh Flexi Cap Fund offers a diversified portfolio with flexibility to invest across market caps and sectors. It's known for its consistent performance and prudent investment approach.

Bandhan Nifty 50 Index Fund provides exposure to the NIFTY 50 index, similar to UTI NIFTY 50 Index Fund. However, having two funds tracking the same index might lead to overexposure and lack of diversification.

Active vs. Passive Management:
While you've included both actively managed mutual funds and index funds (ETFs) in your portfolio, it's important to understand the differences between the two. Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.

Quant Small Cap Fund invests in small-cap stocks, which have the potential for high growth but come with higher volatility and risk. While small-cap funds can be rewarding in the long term, they require patience and a higher risk appetite.

Considering your current portfolio, here are some suggestions:

Diversification: Since you already have exposure to NIFTY 50 index through UTI and Bandhan funds, you might consider reallocating the investment in Bandhan Nifty 50 Index Fund to a different asset class or fund category for better diversification.

Risk Management: Given the volatility associated with small-cap funds, evaluate your risk tolerance and consider whether you're comfortable with the risk-return profile of Quant Small Cap Fund. You may adjust the allocation or switch to a less volatile option if needed.

Review Regularly: Keep an eye on the performance of your funds and review your portfolio periodically. As your financial goals and market conditions evolve, you may need to rebalance your portfolio or make adjustments accordingly.

Seek Professional Advice: Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial situation and goals.

Overall, your portfolio reflects a mix of passive and actively managed funds, providing diversification across market segments. Ensure you stay invested for the long term and maintain a disciplined approach towards your SIPs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - May 03, 2024Hindi

Iam 40yrs old with 1.6lakhs take home with house wife and 3 yr old baby girl. Below is my current financial condition: 1. Taken Home loan for 35 lakhs for apartment worth of 55lakhs in 2022 with emi requirement of 41k for 11yrs (iam paying monthly 45k and one extra 45k emi yearly) 2. Took Gold loan of 11lakhs in 2022(paying from mar2024 onwards monthly 35k) for apartment purpose 3. Holding 2440 sqft land costs 25lakhs in 2021 now it is 35lakhs planned for baby girl marriage 4. 5lakhs emergency fund in FD 5. 6 lakhs FD for SBI life smart wealthbuilder plan purpose for next 6yrly premium payment, 6. Equity 5lakhs invested now mkt value 8lakhs, 7. Mf 8lakhs now 11lakhs (monthly 20k for 10 different funds with 1k stepup yearly) 8. EPF 20lakhs not withdrawn from beginning for retirement plan 9. Ssy 1.2lakhs for baby girl education (monthly 6k) 10. Ppf 50k for baby girl education (monthly 3k) 11. Nps 4.9lakhs now 6lakhs (monthly 12k from company deduction and 50k annually from my side) 12. Holding agriculture land 1acre 7lakhs near hometown purchased in 2018 now it is same price no increase... Holding bcoz I like to have agriculture land... 13. Holding Gold coins 50gms purchasing when there is Amazon offers.. for baby girl ornaments purpose 14. Term insurance 1crore for me and 50lakhs for my wife purchased in 2022 15. Health insurance 20lakhs with premium 60k for 3yrs purchase in 2022... Monthly 1.6lakhs take home spending as below: 1. 45k home loan emi (annually 45k as one extra emi) 2. 30k mf sip ( 3k each for 10 funds - quant infra, quant smallcap, quant elss, 360 one focused, canara robeco smallcap, canara robeco emerging, mirae largecap, pgim flexicap, parag elss, ICICI prudential technology fund) 3. 35k gold loan prepayment 4. 35k home maintenance expenses 5. 10k ssy and ppf 6. 5k apartment maintenance 7. 45k LIc premium annual requirement 8. 40k term loan premium annual requirement taken 1crore for me and 50lakhs for my wife total to 40k premium 9. 30k annually for bike insurance, services and other maintenance 10. 1.3lakhs for baby girl school fees from this year 50% already paid 50% to be paid in oct 2024 11. 60k premium for health insurance once for 3 years purchased in 2022... I have few ask sir: 1. Want to buy 13 to 15Lakhs car.. when to buy with my financial condition and I have no down payment free cash now 2. Should I change my financial saving/investment please suggest as I am not having any free cashflow post the monthly commitment 3. Want to generate 2nd source of income suggest plz which is good to have it 4. Want to become financial freedom by next 10years so what I need to do for it and plan better... Also suggest any changes to current plan

Ans: It's wonderful to see your proactive approach towards financial planning, especially at a young age. Congratulations on your investments and upcoming milestone of starting a family!

Having a stable base with a home and a car is a significant advantage, allowing you to focus more on building your savings and investments.

Investing in ELSS (Equity Linked Savings Scheme) is a smart move, considering its potential for wealth accumulation over the long term and tax-saving benefits under Section 80C of the Income Tax Act. However, it's essential to diversify your portfolio to spread risk.

Given your goal of accumulating 3 crores by the age of 55, you have a considerable time horizon ahead. It's advisable to adopt a disciplined approach towards saving and investing regularly. Consider allocating your savings across different asset classes like equities, debt, and possibly real estate or other alternative investments, depending on your risk appetite and financial goals.

As you're starting a family soon, it's crucial to ensure adequate financial protection for your loved ones. Look into term insurance plans to provide financial security to your family in case of any unfortunate event.

Moreover, since you're relatively new to equity trading and have experienced some losses, it's essential to approach it with caution. Consider focusing more on long-term investments like mutual funds rather than speculative trading, especially considering your long-term financial goals.

As your income grows, aim to increase your savings and investments proportionately. Regularly review your financial plan and make adjustments as needed to stay on track towards achieving your goals.

Remember, patience, consistency, and discipline are key to building wealth over the long term. Best wishes for your journey towards financial independence and starting a family!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by JOSEPH - May 11, 2024Hindi

Hello Sir, I am 53 years, planned for retirement after 3 years. Have MF investment about 50 lacs, FDs about 50 Lacs, will accumulate 50 lacs in the coming three years through investment in MF. My monthly expenditure is Rs 65,000. How can I plan with the above corpus for my retirement so as get monthly payout? Whether to go for SWP - Balanced advantage funds or SWP- Debt funds for my monthly income? Is this correct plan? I will be needing 75,000 per month after my retirement. How much tax will I have to pay on 75,000 per month? Will there be any exit load while changing to SWP? What should be my investment strategy?

Ans: It's great to see that you've already started planning for your retirement and have a diversified investment portfolio. You're taking the right steps towards securing your financial future.

Given your situation, it's essential to ensure that your investments align with your retirement income needs. SWP (Systematic Withdrawal Plan) can indeed be a useful tool to generate a regular income from your mutual fund investments.

Balanced advantage funds and debt funds both have their merits. Balanced advantage funds dynamically manage their equity exposure based on market conditions, offering potential for growth while managing risk. Debt funds, on the other hand, provide stability and regular income with lower risk.

Your plan to accumulate an additional 50 lakhs in MF over the next three years is commendable. It adds to your retirement corpus and potentially increases your income-generating capacity.

To meet your monthly expenditure of Rs. 65,000 during retirement, you'll need to generate a monthly payout of Rs. 75,000, considering inflation and unforeseen expenses.

Regarding taxation, withdrawals from debt funds attract taxation based on the holding period and are subject to indexation benefits. As for balanced advantage funds, equity taxation rules apply if the holding period exceeds one year. It's advisable to consult with a tax advisor for personalized guidance.

Exit loads might apply when switching to SWP, depending on the mutual fund's terms and conditions. Ensure you're aware of any applicable charges before making the switch.

Your investment strategy should focus on a balanced approach, considering your risk tolerance, time horizon, and financial goals. Diversification across asset classes and regular reviews of your portfolio are crucial for long-term success.

Overall, your plan seems well thought out, but it's essential to review and adjust it periodically to adapt to changing market conditions and personal circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 11, 2024Hindi

I intend to quit job very shortly and will have a Corpus of 1.25 crores and regular monthly pension of Rs.75k form work. Should I put invest in conservative Fd or MF. I am 51 years old without any liability or responsibility.

Ans: Congratulations on nearing your retirement! It's fantastic that you've diligently saved up a significant corpus and have a steady pension lined up. You're in a commendable position to make informed financial decisions.

Given your circumstances, a conservative approach to investing seems prudent. Fixed Deposits (FDs) offer stability and are a safe haven for your funds. They guarantee returns, albeit modest ones, shielding your corpus from market volatility.

Mutual Funds (MFs), on the other hand, can potentially offer higher returns but come with market risks. Actively managed funds, in particular, can be tailored to suit your risk tolerance and financial goals.

However, considering your imminent retirement and the need for stability, a mix of both FDs and carefully chosen mutual funds could be beneficial. You could allocate a portion of your corpus to FDs for stability and liquidity while investing the rest in MFs for potential growth.

Moreover, as a Certified Financial Planner, I'd recommend diversifying across different MF categories to spread risk. Equity-oriented balanced funds or debt funds with a track record of consistent returns could be suitable options.

Regular reviews of your portfolio with a professional can ensure it stays aligned with your financial goals and risk tolerance. Additionally, consider factors like taxation and inflation while making investment decisions.

Remember, transitioning into retirement is a significant life change, both financially and emotionally. Ensure you have a solid financial plan in place to support your lifestyle and aspirations during this phase.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by BINOD - May 11, 2024Hindi

Sir. I am doing SIP amount 6000.00through Etmoney genius growth scheme for 10 year.it rebalancing the SIP every month as per market conditions.. should I do extra sip in other scheme or increase the SIP amount in same scheme.kindly suggest

Ans: The decision on whether to add an extra SIP in a different scheme or increase the SIP amount in the same ET Money Genius Growth scheme depends on a few factors:

Current Portfolio Diversification:

Diversification Analysis: Since ET Money Genius Growth scheme is a multi-asset allocation portfolio, it inherently offers some diversification. However, to assess if it's enough, you'd need to know the asset allocation of the scheme (percentage in equities, debt, gold, etc.).
Your Risk Tolerance and Investment Goals:

Risk Tolerance: If you're comfortable with the risk profile of the ET Money Genius Growth scheme and your investment goals are aligned with its asset allocation, increasing the SIP amount in the same scheme might be suitable.
More Growth Potential: If you seek more growth potential and are comfortable with higher risk, you could consider adding an SIP in a different scheme that focuses more on equities, such as a large-cap or flexi-cap fund.
Here's a breakdown to help you decide:

Increase SIP in ET Money Genius Growth Scheme:

Pros: Simpler to manage, aligns with your current risk tolerance, potentially good for long-term wealth creation if the scheme performs well.
Cons: Limited diversification if the scheme's asset allocation doesn't fully align with your goals.
Add an SIP in a Different Scheme:

Pros: Increased diversification, potentially higher growth if the additional scheme performs well.
Cons: More complex to manage, requires research to choose a suitable scheme, might not be necessary if you're comfortable with the existing scheme's risk-reward profile.
Recommendation:

Consider consulting a Certified Financial Planner (CFP). They can analyze your existing portfolio (including the asset allocation of the ET Money Genius Growth scheme), risk tolerance, and investment goals. Based on this, they can recommend whether to increase the SIP amount in the same scheme or add an SIP in a different scheme to achieve optimal diversification and growth potential for your 10-year investment horizon.

Here are some additional points to keep in mind:

Performance Monitoring: Regardless of your decision, regularly monitor the performance of your SIPs.
Rebalancing: Even if ET Money Genius Growth scheme rebalances, you might need to rebalance your overall portfolio periodically to maintain your desired asset allocation. A CFP can advise you on this.
By carefully considering these factors and consulting a professional, you can make an informed decision about your SIP strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Sridhar - May 11, 2024Hindi

Hi, Can you please give feedback on my portfolio and advise on changes that could be worth considering? My horizon is 10+ years. Below are the SIPs (Monthly) Parag Parikh FlexiCap fund - Rs. 51,000/- Nippon India Multi Cap fund - Rs. 40,000/- Mirae Asset Large & Mid Cap fund - Rs. 25,000/- Mirae Asset Aggressive Hybrid Fund - Rs. 50,000/- Thanks, Sridhar

Ans: Feedback on your Mutual Fund Portfolio (10+ year horizon)
Strengths:

Diversification: Your portfolio has good diversification across asset classes with a mix of flexi-cap, multi-cap, large & mid-cap funds, and an aggressive hybrid fund. This helps spread risk and capture growth from different market segments.
Long-term Focus: A 10+ year horizon allows you to ride out market fluctuations and benefit from potential long-term growth in equities.
Areas for Potential Improvement:

Equity Weightage: Your portfolio has a significant allocation (around 70%) towards aggressive equity funds (Parag Parikh Flexi Cap, Nippon India Multi Cap, Mirae Asset Large & Mid Cap). While this can be good for growth potential, it also carries higher risk.
Debt Allocation: Consider including a dedicated debt fund to balance your portfolio and provide stability. This is especially important as you near retirement.
Aggressive Hybrid Fund: The Mirae Asset Aggressive Hybrid Fund invests in a mix of equity and debt. While it provides some stability, it might not offer the same growth potential as your pure equity funds. Consider if this aligns with your risk tolerance.
Recommendations (consult a CFP for personalized advice):

Review Asset Allocation: Analyze your risk tolerance and adjust your equity-debt ratio. A 10-year horizon allows for a more aggressive allocation, but consider adding a debt fund for stability (10-20% of your portfolio).

Evaluate Aggressive Hybrid Fund: Decide if the Mirae Asset Aggressive Hybrid Fund aligns with your goals. You could consider replacing it with a pure equity fund for potentially higher growth, or a more conservative hybrid fund for more stability.

Review Fund Performance: While diversification is good, monitor the performance of each fund within your portfolio. If a fund consistently underperforms its peers, consider replacing it with a better performing option.

Overall, your portfolio has a good foundation for a long-term investment strategy. Consulting a Certified Financial Planner (CFP) can provide a more personalized assessment and recommendations based on your specific financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 11, 2024Hindi

Sir, I am 59 and a private employee without any retirement benefits. I am doing MF sip for the last 3 years for my retirement. I have a total of 40 lakh in MF. There is no age restriction for retirement in our organisation, I want to work for 5 more years to have a fund of 1 crore. How much sip should I do and in which funds ?

Ans: Here's how you can plan for your retirement, considering your current situation:

Reaching 1 Crore Corpus:

Additional SIP: To reach 1 crore in 5 years, assuming a 12% annual return (aggressive assumption, actual returns may vary), you'd need to invest an additional Rs.33,000 per month (using a SIP calculator). This adds to your existing SIP amount.
Investment Strategy:

Continue Existing SIP: It's good to continue your existing SIP as it forms your investment base.
Diversify for Growth: Consider a diversified aggressive portfolio for the additional SIP to potentially maximize growth within a 5-year timeframe. This could include:
Large-Cap Funds: Invest a portion in large-cap funds for stability and growth.
Multi-Cap Funds: Invest a portion in multi-cap funds for broader market exposure and growth potential.
Mid-Cap Funds (Optional): A small portion in mid-cap funds can add growth potential, but also carries higher risk.
Consultation is Key: These are general suggestions. Consulting a Certified Financial Planner (CFP) is highly recommended. They can consider your risk tolerance, existing MF portfolio, and desired retirement corpus to create a personalized investment plan.

Remember:

Market Volatility: The stock market is volatile. There's no guarantee of 12% returns, and you might face fluctuations.
Review Portfolio: Regularly review your portfolio with your CFP to ensure it aligns with your evolving goals and risk tolerance.
Alternative Scenario:

If a more aggressive investment approach concerns you, consider working a few extra years to reach your desired corpus. This reduces the monthly SIP amount required.

Reaching your retirement goals is achievable! Plan wisely, diversify, and seek professional guidance for a secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 05, 2024Hindi

Hi, I currently earn 42k per month at the age of 25, no loans, I have 2 Lacs in mutual fund and around 80k in stocks. I also have a term insurance and health insurance is from company policy. I stay at parents house so no rent either, just 9-10k per month on an average on electric bill+ grocery that I pay. I invest 12k per month in stocks and mutual fund altogether. Am I having a right approach or should i make any emergency fund? And how and where to keep the money? I'm planning to get a health insurance for my mother and I next year.

Ans: It's commendable that you're already prioritizing investments at such a young age and have taken steps to secure insurance coverage. Your approach demonstrates financial responsibility and foresight.

Given your current financial situation, establishing an emergency fund is indeed a prudent step. An emergency fund acts as a financial safety net, providing liquidity to cover unexpected expenses like medical emergencies or job loss without disrupting your long-term investments.

As a Certified Financial Planner, I recommend setting aside at least three to six months' worth of living expenses in your emergency fund. Since your average monthly expenses are around 9-10k, aim to accumulate around 30k to 60k in your emergency fund.

You can keep your emergency fund in a high-yield savings account or a liquid mutual fund for easy accessibility and liquidity. These options offer stability and ensure your funds are readily available when needed.

Regarding health insurance for you and your mother, it's a wise decision to enhance your coverage. Evaluate various health insurance plans to find one that meets your specific needs and offers comprehensive coverage for medical expenses.

Continue with your disciplined approach towards investing in stocks and mutual funds. Allocating a portion of your monthly income towards investments ensures wealth accumulation over time. Regularly review your investment portfolio and make adjustments as needed to align with your financial goals and risk tolerance.

Overall, you're on the right track with your financial planning and investments. Keep up the good work and remain proactive in managing your finances for a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 05, 2024Hindi

Hi sir, I'm 24 yrs old just started working in new domain which is not relevant to my core studies (i studied msc in zoology ) but now working in as network engineer (bcos its one of my passion), wo i followed my heart voice.. For mow i started earning 15k as fresher , and i started investing in MF for about 1 yrs and my sip amount per month is 4k and plus lumpsum addition amount result in around 1 lakh with profit of 9 percent of my portfolio .. it's growing slow and steadily but i want to increase my savings and invest . Kindly advice on this your thoughts .. My holdings all are direct funds Parag flexi Icici nifty 50 index Icici bluechip Nippon small I don't want to diversify more that this in MF so i stop only with 4 mfs .. Thanking you for your advice

Ans: Starting your career in a different domain from your academic background is a brave move, showcasing your willingness to follow your passion. It's impressive how you've taken charge of your finances despite starting with a modest income. Keep up the good work!

Increasing your savings and investments is a wise decision, especially at a young age. Gradually raising your SIP amount as your income grows is a prudent step towards building wealth over time. Consistency is key in investing, and your commitment to regular investments will pay off in the long run.

Direct funds offer several advantages over regular funds, including lower expense ratios, potentially boosting your returns over time. However, managing direct funds requires expertise and time commitment. Considering your busy schedule, investing through a Certified Financial Planner (CFP) with expertise in mutual funds can be advantageous. They can provide personalized guidance, monitor your portfolio, and make timely adjustments as needed, ensuring optimal returns while you focus on your career.

While mutual funds are a solid starting point, exploring other investment avenues gradually can further diversify your portfolio and optimize returns. Consider learning about stocks, bonds, or alternative investments to broaden your investment horizon.

Continuous education about financial concepts and investment strategies will empower you to make informed decisions and navigate the complex world of finance effectively. Keep seeking knowledge and stay open to new opportunities.

With dedication, discipline, and a proactive approach, you're well on your way to achieving your financial goals. Keep believing in yourself and your abilities, and remember that every small step you take today contributes to a brighter financial future tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Saddam - May 03, 2024Hindi

I need to create corpus of 5 crores in 10 years. im currently investigating of 46500 past one year. i have following mutual fund in my portfolio Hdfc sensex index 20k pgim midcap 3k motilal midcap index 3k sbi next 50 index 1k motilal micro index 46 icici prudential technology 1k quant small cap 7k parakpari flexi cap 5k axis small 2k. im private employee and earning of 140000 per month. so please provide suitable answer which created 5cr in 10 years also i have lic of 50k per year,ppf of 50k per year and nps 5k every month. my current age is 34

Ans: Creating a corpus of 5 crores in 10 years is an ambitious goal, but with careful planning and strategic investments, it's achievable. Your current investment portfolio and savings habits provide a solid foundation for reaching this milestone.

Given your age of 34 and the 10-year time horizon, we'll need to focus on a growth-oriented investment strategy while ensuring diversification and risk management.

Let's start by optimizing your mutual fund portfolio. While you have a diversified mix of funds, we may need to make some adjustments to align with your goal. Consider increasing allocations to high-growth potential funds like mid-cap and small-cap funds, which historically have outperformed broader market indices.

Regularly review your portfolio to monitor performance and make necessary adjustments based on market conditions and your evolving financial goals.

Additionally, continue your disciplined approach towards savings. Your LIC, PPF, and NPS contributions provide stability and long-term growth opportunities. Ensure you maximize contributions to these instruments within permissible limits to harness their full potential for wealth accumulation.

Remember to stay patient and committed to your financial plan. Building a significant corpus requires time and consistency. As a Certified Financial Planner, I'm here to guide you every step of the way and help you navigate through market fluctuations and uncertainties.

With determination and strategic financial planning, you can achieve your goal of creating a 5 crore corpus in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Lucas - May 05, 2024Hindi

Hi invested 1 lakh amount in Nippon India Small cap, what corpus can be expected after 30 years?

Ans: It's impossible to predict the exact corpus you'll have after 30 years with Nippon India Small Cap Fund (or any mutual fund) due to several factors:

Market Fluctuations: Stock markets are inherently volatile. Past performance doesn't guarantee future returns.

Fund Performance: The fund's future performance significantly impacts your corpus.

Here's what we can do instead:

Historical Performance: Nippon India Small Cap Fund has historically performed well. However, past performance doesn't guarantee future results.

SIP Calculator: Use Nippon India Mutual Fund's SIP calculator (https://mf.nipponindiaim.com/knowledge-center/tools/sip-calculator) to estimate potential returns based on different investment periods and assumed rates of return. Remember, these are just estimates.

Seeking Professional Advice: Consulting a Certified Financial Planner (CFP) can be beneficial. They can consider your risk tolerance, investment goals, and overall portfolio to suggest a suitable investment strategy.

Important to Remember: Focus on long-term wealth creation through disciplined investing. Stay diversified and avoid making investment decisions based solely on predicted returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 03, 2024Hindi

I want to take Health Insurance for my mom and dad , But not sure if they contain pre existing disease or not. As My Mon often get sick. And I if take Health Insurance Blindly I might need to be waiting list or company can reject claim stating you didn't mention about pre diseases. Please Guide what steps I need to take

Ans: It's commendable that you're considering health insurance for your parents. It's a vital step towards securing their well-being.

Understanding your parents' health condition is crucial before purchasing insurance. Consider scheduling a comprehensive health check-up for them. This will help identify any pre-existing conditions they may have.

If pre-existing conditions are found, don't worry. Many insurance policies cover pre-existing illnesses after a waiting period. Disclose all relevant information to the insurer transparently to avoid claim rejections later.

Opting for a family floater health insurance plan can be beneficial. It covers the entire family under a single policy, including pre-existing conditions after the waiting period.

Compare different health insurance policies, considering factors like coverage, premium, waiting period, and claim settlement ratio. Choose a plan that suits your parents' healthcare needs and your budget.

Regularly review and renew the health insurance policy to ensure continuous coverage. As a Certified Financial Planner, I'm here to guide you through this process and address any concerns you may have.

Remember, investing in your parents' health is an investment in their happiness and well-being.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Ajay - May 02, 2024Hindi

Hi, I liked a home that cost 1.1 crore. I don't have a down payment hence I decide to take this in joint name with my friend, who had 40 lakh rupees. Will bank permit home loan of 70 lakh to me to take this home in joint ownership with friend.

Ans: Taking a joint home loan with your friend can be a viable option to fulfill your dream of owning the desired home. Banks typically consider the combined income and creditworthiness of all co-applicants when approving a joint home loan.

In your case, since your friend has 40 lakh rupees for the down payment, you can apply for a home loan of 70 lakh rupees jointly. However, it's crucial to note that each bank has its own lending criteria and may evaluate the loan application based on factors such as income stability, credit history, and debt-to-income ratio.

Before proceeding, it's advisable to discuss the terms of the joint ownership with your friend and seek legal advice to draft a co-ownership agreement outlining the responsibilities, rights, and obligations of each party to avoid any potential conflicts in the future.

Additionally, consult with multiple banks or financial institutions to compare loan offers and choose the one that best suits your requirements in terms of interest rates, tenure, and repayment options.

By leveraging the combined financial strength of both applicants, you can increase the chances of loan approval and make your dream of homeownership a reality.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 01, 2024Hindi

Sir, I am 43 years old, wish to invest Rs. 10,000/- in Some good Mid cap fund for 15 years horizon. Is it safe to go ahead with Quant mf or some other fund house i should think off. Please advise. I am already investing via SIP with Canara robeco Large cap 5000/-, Axis Large cap fund 5000/-, Idbi Top 100-2000/-, Axis mid cap fund.-3000/-Mirae mid cap fund 5000, mirae mid and large cap 5000/-and Nippon small cap fund 7500/- since last 5 years. My horizon is 15 years from now. My expectations is to get minimum approx 4 cr at the age of 60. Kindly advise some changes required in portfolio to achieve my goals.

Ans: Given your current investment portfolio and your goal of accumulating approximately 4 crores in 15 years, it's essential to ensure that your investment choices align with your objectives and risk tolerance.

Mid-cap funds can offer attractive growth opportunities over the long term, but they also come with higher volatility compared to large-cap funds. Since you already have exposure to mid-cap funds through Axis Mid Cap Fund, adding another mid-cap fund like Quant MF may increase concentration risk in your portfolio.

Instead, consider diversifying into other asset classes or fund categories to spread risk and enhance growth potential. You may explore adding a balanced fund or a multi-cap fund to your portfolio to achieve better diversification across market segments.

Furthermore, regularly reviewing your portfolio with a Certified Financial Planner can help assess its performance, rebalance as needed, and make necessary adjustments to stay on track towards your retirement goal.

Your commitment to systematic investing is commendable. By staying disciplined and making informed decisions, you're laying a strong foundation for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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

Question by Sri - May 01, 2024Hindi

Hi, I am aged 34, have been accumulated 2.28 Cr via investing in small cap mutual funds (Nippon(since 2017), dsp(since 2016), hsbc(l&t)(since 2016), quant(since 2023), I don't have any loans, had two kids aged 4.5 yrs and 2 yrs, I have only one specific goal in my mind, to have a peaceful retirement. Taking into cognizance of inflation can you suggest any course correction,if any, I need to make, being a employee of statutory body, income wise it's extremely stable till I turn 60.

Ans: Given your prudent investment approach and stable income, you're well on track for a peaceful retirement. With a portfolio predominantly in small-cap mutual funds, you've embraced growth potential. However, let's address the elephant in the room: inflation.

Inflation has a knack for eroding purchasing power over time. To safeguard your retirement dreams, we'll need to fortify your investment strategy. While small-cap funds offer robust growth prospects, they can also be volatile, especially in the face of economic downturns.

Diversification is our ally here. We can explore a blend of large-cap, mid-cap, and debt funds to balance risk and return. Large-cap funds offer stability, while mid-cap funds provide growth potential with less volatility. Debt funds act as a cushion during market turbulence, ensuring a smoother ride towards retirement.

Moreover, consider revisiting your asset allocation periodically. As you approach retirement, gradually shift towards more conservative investments to shield your corpus from market fluctuations.

Regular reviews with a Certified Financial Planner can fine-tune your strategy and adapt it to changing market dynamics. They can offer personalized guidance tailored to your financial goals and risk tolerance, ensuring a smooth sail towards retirement.

Your disciplined approach to savings and investments is commendable. Keep nurturing your financial acumen, and together, we'll pave the path for a serene retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 01, 2024Hindi

I have 200000 how invest for 10 years for retirement plan

Ans: It's wonderful that you're planning for your retirement. With Rs. 2,00,000 for a 10-year horizon, strategic allocation is vital.

Considering your timeframe, you can afford a slightly more aggressive approach, focusing on equity-oriented investments. However, it's crucial to balance risk with potential returns.

Diversification is key. Allocating funds across different asset classes like equity, debt, and possibly gold can help mitigate risks associated with market volatility.

As a Certified Financial Planner, I recommend a systematic investment approach, perhaps through SIPs, to benefit from rupee cost averaging and compounding over time.

Avoiding direct investment routes and opting for regular funds through a Certified Financial Planner can provide professional guidance and mitigate risks associated with DIY investing.

While actively managed funds may have slightly higher expenses compared to index funds, they offer the potential for better returns through active portfolio management and selection of high-quality securities.

Remember to review your portfolio periodically to ensure it aligns with your evolving financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Kick - May 01, 2024Hindi

Sir I have fd of 35 lakhs on which I have taken loan against it 22lakhs out of which I have invest onland which is valued at 50 lakhs now I have monthly sip in the following mf Bajaj finserve flexi cap direct 1000 Nippon india retirement wealth creation fund 500 Bandhan nifty small cap 250 index fund 500 Boi multi capfund 1000 Depend upon my saving iam investing lumpsum in Boi multi asset fund Mahindra manulife flexi capfund Bajaj finserv balanced adv fund Aditya Birla sunlife medium term plan Tala gold ETF these are good funds? whether have to change them and I have to repay my loan amount or have to invest in mf (where I can invest 40k monthly) I am a psb employee aged 35 years having monthly income of 1.1 lakh

Ans: Considering your financial situation, it's commendable that you've built a substantial fixed deposit and invested in land. However, taking a loan against it is a double-edged sword. While it can provide liquidity, it also adds debt to your portfolio.

Your monthly SIPs in various mutual funds showcase a diversified approach, which is wise. However, it's essential to evaluate if these funds align with your risk appetite, financial goals, and time horizon. Additionally, investing lump sums requires careful consideration to avoid overexposure to certain sectors or asset classes.

Given your stable income and age, repaying the loan should be a priority to reduce debt burden and interest costs. Simultaneously, you can continue investing in mutual funds to build wealth systematically. It's crucial to strike a balance between debt repayment and wealth accumulation.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

When it comes to choosing mutual funds, seeking guidance from a Certified Financial Planner can be advantageous. They can help tailor your investment strategy based on your financial objectives and risk tolerance. Additionally, they can offer insights into the pros and cons of actively managed funds versus index funds, helping you make informed decisions.

Ultimately, the key is to maintain a diversified portfolio, stay disciplined with your investments, and regularly review your financial plan to adapt to changing circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Patrayya - May 02, 2024Hindi

Hi I have invested in Quant flexi cap Rs 200000/- hsbc large and mid cap Rs 100000/- Canara robico small cap Rs 50000/- tata digital Rs 50000/- Pgim india mid cap Rs 200000/- kotak blue chip Rs 200000/- Parag parekh flexicap Rs 200000/- SBI PSU Rs 50000/- Nippon india small cap Rs 200000/- HDFC flexicap 200000/- hsbc lage cap 200000/- Axis small cap 200000/- for 5 to 10 years also would like to add Rs 25000 every month pl advise.

Ans: It's evident that you've taken a proactive approach towards investing, with a diverse portfolio across various Mutual Funds (MFs). Let's assess your current investments and provide guidance on your future investment strategy.

Your portfolio reflects a mix of flexi-cap, large-cap, mid-cap, and small-cap funds, indicating a balanced approach to risk and return. Investing with a horizon of 5 to 10 years aligns with your long-term financial goals, offering the potential for capital appreciation over time.

Adding a monthly investment of Rs 25,000 further strengthens your commitment to wealth accumulation and provides an opportunity to benefit from rupee-cost averaging, especially during market fluctuations.

However, it's essential to review your portfolio periodically to ensure alignment with your financial objectives and risk tolerance. Consider the following suggestions:

Diversification: While diversification is essential, having multiple funds within the same category may lead to overlap and concentration risk. Evaluate if certain funds serve similar purposes and consider consolidating or reallocating accordingly.

Review Performance: Regularly monitor the performance of your MFs and compare them against their benchmarks and peers. Funds that consistently underperform may warrant reconsideration.

Asset Allocation: Assess your asset allocation to ensure it aligns with your risk profile and investment horizon. Depending on your age and risk tolerance, you may consider adjusting the allocation between equity and debt funds.

Stay Informed: Keep yourself updated on market trends, economic indicators, and fund manager changes. This knowledge will empower you to make informed investment decisions.

Seek Professional Advice: Consider consulting with a Certified Financial Planner to review your portfolio comprehensively. They can provide personalized advice tailored to your financial goals and help optimize your investment strategy.

Overall, your commitment to long-term investing and systematic additions to your portfolio are commendable. With regular monitoring and adjustments, you're well-positioned to achieve your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 01, 2024Hindi

Hi I am 44 yrs old and investing 25k p m in MF through SIP. I currently have 9L in MF, 25L in PF and 3 L emergency fund. I want to retire at 50 and need 3cr corpus by then. Please suggest if I am on right track. I have monthly SIP across small, large and multi cap and flexi cap. Please suggest.

Ans: It's great to see your proactive approach towards retirement planning. Let's evaluate your current situation and assess if you're on track to achieve your goal of accumulating a 3 crore corpus by the age of 50.

With a monthly SIP investment of 25,000 rupees across various Mutual Funds (MFs), you're consistently saving towards your retirement goal. Your existing investments of 9 lakhs in MFs, 25 lakhs in PF, and a 3 lakh emergency fund demonstrate a disciplined approach to financial planning.

Diversifying your SIPs across small, large, multi-cap, and flexi-cap funds indicates a balanced investment strategy, spreading the risk across different market segments.

To retire comfortably at 50 with a 3 crore corpus, let's do a quick assessment:

Given your current age of 44 and the desired corpus of 3 crores in 6 years, it's essential to ensure that your investments are aligned with your target.

Considering historical market returns and your monthly SIP contributions, you may need to assess if your current investment amount and asset allocation are sufficient to achieve your goal.

Additionally, factors like inflation, market volatility, and unforeseen expenses need to be considered in your retirement planning strategy.

I recommend consulting with a Certified Financial Planner to conduct a comprehensive review of your retirement plan. They can assess your risk tolerance, investment horizon, and financial goals to make necessary adjustments to your investment portfolio.

Regular monitoring and periodic reviews of your investment plan are essential to ensure that you stay on track towards your retirement goal.

Overall, your commitment to regular saving and diversified investments is commendable. With proper planning and guidance, you're likely on the right track to achieve your retirement aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 01, 2024Hindi

Hi Would like to get some ideas on the following My wife may get around 40 to 50 lakhs as part of her family settlement and the amount will be paid her mother to her directly Apparently my wife is working and she is a tax payer ! With this settlement money incurs any tax ? Also what is the ideal way to invest this bulk amount in any MFs ? Suggest please

Ans: Firstly, congratulations to your wife on the impending family settlement. It's an opportunity to secure your financial future. Let's address your concerns regarding taxes and investments.

As your wife is a taxpayer, it's crucial to understand the tax implications of the settlement amount. In India, money received from family settlements is generally not taxable under the Income Tax Act, provided it's received from a relative and doesn't fall under any taxable category like gifts or income. However, it's advisable to consult with a tax expert to ensure compliance with tax regulations.

Once the settlement amount is in hand, it's wise to consider various investment options to make the most of it. While direct investments in Mutual Funds (MFs) might seem appealing, it's essential to approach it strategically.

Regular funds through a Certified Financial Planner offer personalized advice tailored to your financial goals and risk tolerance. They can help you navigate the complexities of the market and make informed investment decisions.

Instead of putting the entire amount into MFs at once, consider a staggered approach through Systematic Investment Plans (SIPs). This spreads the investment over time, reducing the risk of market volatility.

Diversification is key to a robust investment portfolio. Allocate the settlement amount across different types of MFs, including equity, debt, and balanced funds, to manage risk effectively.

Avoid the temptation to time the market or chase high returns. Stay focused on your long-term financial goals and maintain discipline in your investment strategy.

Remember, every investor's situation is unique. Seek professional advice from a Certified Financial Planner to create a customized investment plan aligned with your financial objectives and risk appetite.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 01, 2024Hindi

Our monthly expenses are 1.6L. we work in PSU and stay in Mumbai in company allotted quarters. Our monthly income is around 2L + 80K in VPF. Can you guide us about how should we invest for future. Our age is 40yrs.

Ans: Given your situation, it's commendable that you're seeking guidance for your financial future. With a monthly income of 2 lakhs plus 80,000 in VPF and expenses of 1.6 lakhs, you have a surplus for investment.

Firstly, let's acknowledge your prudent approach towards financial planning. It's essential to plan for the future, especially as you approach your 40s.

Considering your circumstances, I recommend diversifying your investments for long-term growth and stability. While real estate isn't on the table, there are still various avenues to explore.

Regular mutual funds through a Certified Financial Planner offer a structured approach, providing professional insights and guidance tailored to your goals and risk tolerance.

While direct funds might seem tempting due to lower expense ratios, they lack the personalized advice that a CFP can offer, potentially leading to suboptimal investment decisions.

Index funds may appear attractive due to their low fees, but they can be restrictive in terms of potential returns, as they merely mirror the market. Actively managed funds, on the other hand, have the potential to outperform the market through skilled management.

Additionally, consider avenues like SIPs (Systematic Investment Plans) in a diversified portfolio of equity and debt funds to capitalize on market opportunities while managing risk.

Remember, investing is a journey, and it's crucial to stay committed to your financial goals while adapting to changing circumstances.

Your proactive approach to seeking financial advice is commendable. With careful planning and the right guidance, you're on track to secure a comfortable future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 07, 2024Hindi

I am 29 yrs old. I investing 90k per month in mutual fund and stock market valued approx 34lakh and 11 lakh respectively. I also have 100 units of SGB amd activity investing in it around 10 units per issue. Just started PPF investment this year. I need to retire by age of 45. And want 3 lakh per month for monthly expenses. Please guide am i going in right directions?

Ans: At 29, you're demonstrating a proactive approach towards securing your financial future, which is commendable. Your investments in mutual funds, stocks, Sovereign Gold Bonds (SGBs), and Public Provident Fund (PPF) reflect a diversified portfolio aimed at wealth accumulation.

Investing in mutual funds and the stock market can offer substantial growth potential over the long term, especially when approached with a disciplined strategy and a focus on quality investments. Your current portfolio values of approximately 34 lakh in mutual funds and 11 lakh in stocks indicate a significant commitment to building wealth through equities.

Sovereign Gold Bonds (SGBs) offer a unique avenue for investing in gold, providing the dual benefits of capital appreciation and fixed interest income. Your strategy of actively investing in SGBs, averaging around 10 units per issue, aligns with a long-term wealth accumulation plan.

Additionally, initiating PPF investments this year adds a layer of stability to your portfolio. PPF offers attractive tax benefits and a guaranteed rate of return, making it a suitable option for retirement planning.

However, retiring by the age of 45 and aiming for a monthly expense of 3 lakh rupees necessitates a thorough evaluation of your financial plan. While your current investments show promise, achieving your retirement goal will require careful planning and possibly adjusting your investment strategy.

As a Certified Financial Planner, I recommend the following steps:

Conduct a comprehensive financial assessment to determine your current financial position, retirement goals, and risk tolerance.
Develop a detailed retirement plan, considering factors such as inflation, lifestyle expenses, and investment returns.
Evaluate the adequacy of your current savings and investment strategy in meeting your retirement income needs.
Explore options for increasing your savings rate and optimizing your investment portfolio to maximize returns while managing risk.
Continuously monitor and adjust your financial plan as needed to stay on track towards achieving your retirement goals.
In summary, while you've made significant strides in building your investment portfolio, retiring by the age of 45 and generating a monthly income of 3 lakh rupees will require careful planning and disciplined execution. By working with a Certified Financial Planner and regularly reviewing your financial plan, you can increase the likelihood of achieving your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 07, 2024Hindi

While exploring houses to buy, we realised we do not have substantial money for down payment. How wise will it be to delay our house buying plan by 5 years, invest dedicatedly in SIPs and use the accumulated sum to buy the house? We understand house prices will skyrocket as well. What should we try to do to avoid as much tax on withdrawal once SIPs mature - given we plan to invest about 1.25L each month in SIPs for buying a house.

Ans: Delaying your house buying plan to accumulate a substantial down payment through SIPs can be a prudent strategy, provided it aligns with your long-term financial goals. By investing dedicatedly in SIPs over the next five years, you'll have the opportunity to build a sizable corpus, potentially easing the financial burden of purchasing a house in the future.

However, it's essential to consider several factors before proceeding. Firstly, ensure that your investment in SIPs is diversified across different asset classes to mitigate risks. While SIPs offer the potential for growth, they are subject to market fluctuations, and a diversified portfolio can help cushion the impact of market volatility.

Secondly, keep in mind the impact of inflation and the rising cost of housing. While delaying your purchase may allow you to accumulate a larger down payment, it's essential to factor in the appreciation in house prices over time. Regularly reassess your financial plan to ensure it remains aligned with your housing goals and the prevailing market conditions.

Regarding tax implications on SIP withdrawals, consult with a tax advisor to explore strategies for minimizing tax liability. Utilize tax-efficient investment avenues such as Equity Linked Savings Schemes (ELSS) or Tax-Saving Mutual Funds, which offer tax benefits under Section 80C of the Income Tax Act.

Additionally, consider the tax implications of long-term capital gains on your SIP investments. Holding your investments for the long term can qualify for favorable tax treatment, but it's crucial to understand the applicable tax rates and exemptions.

In summary, delaying your house buying plan to invest in SIPs can be a viable strategy, provided you carefully consider market dynamics, diversify your investments, and plan for tax efficiency. Consult with a Certified Financial Planner to develop a comprehensive financial plan tailored to your specific needs and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by RAKESH - May 07, 2024Hindi

I have started one SIP of Rs40000/month, Dividend Two midcap growth Plan and one Smallcap Direct Growth Plan.. I want to know If after certain year, I can't able to pay by any means of my SIP amount, Is it acceptable. ? what will be my Financial loss to my deposited amount ? Plz Explain?

Ans: It's commendable that you've initiated SIPs (Systematic Investment Plans) to grow your wealth. However, life can be unpredictable, and circumstances may change, affecting your ability to continue these investments.

If you're unable to continue your SIPs after a certain period, it's essential to understand the implications. Firstly, discontinuing your SIPs prematurely can impact the potential growth of your investments. The longer you stay invested, the greater the power of compounding, which can significantly boost your returns over time.

Secondly, abruptly stopping your SIPs may lead to missed opportunities. Market timing is notoriously difficult, and exiting your investments at an inopportune moment could result in lost potential returns, especially if you're invested in mid-cap and small-cap funds, which tend to be more volatile.

Moreover, redeeming your investments prematurely might subject you to exit loads or penalties, further eroding your returns.

As a Certified Financial Planner, I would advise you to assess your financial situation carefully and explore alternatives before discontinuing your SIPs. Consider options like reducing the SIP amount temporarily, switching to a lower-cost plan, or pausing the SIPs if feasible, rather than stopping them altogether.

It's also crucial to have an emergency fund in place to handle unexpected financial challenges without resorting to withdrawing your investments prematurely.

Ultimately, every financial decision comes with its own set of consequences, and it's essential to weigh the pros and cons carefully before taking any action.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Question by Hari - May 07, 2024Hindi

I have bought a Health Insurance for My family 2+1 on Aug 23 with a 25Lacs covering from Reliance General Insurance Co. This Policy is port from Niva Bhupa which i had taken in 2021. I come to know some one from my surrounding is that the Reliance is not settling claims Properly and full. This policy is taken for 2year. Can u Suggest me

Ans: I understand you're concerned about Reliance General settling claims properly. It's good to be aware! Here's how we can approach this:

Claim Settlement Ratio (CSR) Check: Every insurance company has a CSR, a public record showing the percentage of claims they settle. You can check Reliance General's CSR online to see their historical performance.

Policy Review: Review your policy documents carefully. Understand the terms and exclusions related to claim settlements. If something seems unclear, reach out to Reliance General for clarification.

Network Hospitals: Using network hospitals within your policy can streamline the claim settlement process.

Remember, a single experience doesn't represent the entire picture. However, your concern is valid. Let's not worry, we can assess further!

You did well porting your policy! Health insurance is crucial, and you've taken a great step for your family.

Moving forward: If you'd like a more in-depth analysis of your health insurance options, consider consulting a Certified Financial Planner (CFP). They can assess your specific needs and recommend the best plan based on your family's requirements.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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

Asked by Anonymous - May 07, 2024Hindi

I m 41 yrs old i invest 3000,3000 and 4000 per month in mutual fund nippon india large cap, quant mid cap and tata small cap so after 10yrs will b able to get 1cr? Or approximately how much i will get ater 10yrs?

Ans: Investing is a wise move for securing your financial future. With your disciplined approach, you're already on the right track. By putting aside 3000, 3000, and 4000 rupees monthly into diversified mutual funds, you're laying a solid foundation for wealth creation.

Mutual funds offer the potential for growth over the long term. Your mix of large-cap, mid-cap, and small-cap funds indicates a balanced strategy, tapping into different segments of the market for optimal returns.

However, predicting an exact amount after 10 years is tricky due to market fluctuations. Mutual fund returns are subject to market risks. While aiming for 1 crore is ambitious, it's essential to temper expectations with realism.

Your investment journey is akin to a marathon, not a sprint. Consistency and patience are key. Regular monitoring of your investments and adjusting your strategy as needed will be crucial to stay on course.

As a Certified Financial Planner, I'd advise you to focus not just on the final number but also on the journey itself. Celebrate milestones along the way and stay committed to your financial goals. Remember, financial planning is not just about numbers; it's about securing your dreams and aspirations for the future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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

Asked by Anonymous - May 07, 2024Hindi

I am 31, investing approx 80k per month in SIP, with a current corpus of 50L. I also have 1.2Cr in foreign stocks which have been performing really well, 10L in Indian stock market and another 15L in PPF and NPS. I want to retire by the time I'm 45 with an expected earning of 1L per month. Any suggestions or ideas?

Ans: It's impressive to see your proactive approach to financial planning at 31! With a diversified investment portfolio and a clear retirement goal, you're on the right track to achieve financial independence by the age of 45. Here are some suggestions to help you reach your retirement target:

Assess Retirement Needs: Start by estimating your retirement expenses to determine how much you'll need to generate 1L per month in passive income. Consider factors such as inflation, healthcare costs, and lifestyle preferences.

Review Investment Portfolio: Regularly review your investment portfolio to ensure it remains aligned with your retirement goals and risk tolerance. Consider rebalancing if necessary to maintain the desired asset allocation.

Maximize Contributions: Continue maximizing your SIP contributions to build wealth over time. Consider increasing your monthly SIP amounts as your income grows to accelerate wealth accumulation.

Utilize Tax-Efficient Investments: Explore tax-efficient investment options such as ELSS, PPF, and NPS to minimize tax liability and maximize returns. Take advantage of tax-saving opportunities to optimize your investment strategy.

Diversify Income Streams: Look for opportunities to diversify your sources of income beyond investments. Consider generating passive income through rental properties, royalties, or online businesses to supplement your investment earnings.

Monitor Foreign and Indian Stocks: Keep a close eye on your foreign and Indian stock holdings to capitalize on growth opportunities and mitigate risks. Consider rebalancing your stock portfolio periodically to manage volatility and optimize returns.

Plan for Healthcare Costs: Factor in healthcare expenses when planning for retirement. Consider purchasing health insurance coverage to protect against unexpected medical costs and ensure peace of mind during retirement.

Seek Professional Guidance: Consider consulting with a Certified Financial Planner (CFP) who can provide personalized advice and help you develop a comprehensive retirement plan tailored to your specific goals and circumstances.

With a disciplined approach to savings, strategic investments, and prudent financial planning, you can work towards achieving your retirement goal of generating 1L per month in passive income by the age of 45.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - May 07, 2024Hindi

Am 49, i want to invest 20000 pm how much will i get per month in nps after 60

Ans: I can't tell you definitively how much you'll get per month after 60 with NPS, but I can help you estimate. Here's why:

NPS payout depends on multiple factors: The amount you receive depends on the corpus accumulated at retirement, the annuity plan you choose, and prevailing interest rates at that time.

Annuity plan is mandatory: Upon retirement, at least 40% of your NPS corpus must be used to purchase an annuity plan, which provides a fixed monthly pension.

Here's what you can do to estimate:

Use an NPS calculator: Several online NPS calculators can help estimate your monthly pension based on your investment amount, investment horizon (years till retirement), and expected returns.

Assumptions for estimation: Assuming a 10% annual return, investing Rs.20,000 per month for 11 years (till 60), and a 6% return on the annuity, an online calculator might give you a rough estimate of your monthly pension.

Remember: This is just an estimate. Actual returns and annuity rates may vary. It's best to consult a financial advisor for a personalized assessment based on your specific goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked by Anonymous - Apr 11, 2024Hindi

Hello sir am 40 as of now no savings but want to save to get a good house with out any home loan am looking to get an amount of 50 to 75 lacks ,please suggest with in 2 years how should I invest and where should I invest

Ans: It's admirable that you're setting a goal to save for a house within a relatively short timeframe of two years. Let's explore a strategic approach to help you achieve your target of accumulating 50 to 75 lakhs:

Establish a Budget: Begin by assessing your current financial situation and creating a realistic budget. Identify areas where you can reduce expenses and allocate more towards your savings goal.

Set Clear Savings Targets: Determine the specific amount you need to save each month to reach your target within two years. Having a clear savings target will help you stay focused and motivated.

Explore High-Return Investments: Given your short investment horizon, focus on investments that offer the potential for higher returns while managing risk. Consider a mix of equity and debt investments to balance growth potential with stability.

Avoid High-Risk Options: While high-risk investments may offer the potential for higher returns, they also come with increased volatility and uncertainty. Avoid speculative investments that could jeopardize your savings goal.

Regular Monitoring and Adjustment: Continuously monitor the performance of your investments and make adjustments as needed to stay on track towards your savings target. Rebalance your portfolio periodically to maintain the desired asset allocation.

Consider Tax-Efficient Options: Explore tax-efficient investment options such as Equity Linked Savings Schemes (ELSS) or tax-saving fixed deposits to minimize tax liability and maximize returns.

Seek Professional Guidance: Consider consulting with a Certified Financial Planner (CFP) who can provide personalized advice tailored to your financial goals and risk tolerance. A CFP can help you develop a customized investment strategy aligned with your savings target.

With careful planning, disciplined savings, and strategic investments, you can work towards achieving your goal of saving for a house within the next two years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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

Asked by Anonymous - Apr 11, 2024Hindi

You posted: Hi I am 36 years old married. I have a net worth of 4.2 crore which includes second home (bungalow in tier 2 city) of 1.25 Crore without any loan. Investment in equity & mutual fund of 90lakhs. Balance 2.05 Cr in debt, FD & gold. My monthly expense is ?60K. Salary of 1.8L per month. I have Life insurance for self and Health insurance for self and spouse. Can I retire with this amount in tier 2 city?

Ans: Congratulations on building such a substantial net worth at 36! Your financial discipline and strategic investments have put you in a strong position for the future. Let's assess whether you can retire comfortably in a tier 2 city with your current assets:

With a net worth of 4.2 crores, including investments, real estate, and other assets, you have accumulated a significant amount for retirement.

Your monthly expenses of 60K are relatively modest compared to your net worth and monthly income of 1.8L, which is a positive sign for retirement planning.

The absence of any outstanding loans, coupled with life and health insurance coverage, provides financial stability and security for you and your spouse.

Retirement readiness depends on various factors, including your desired lifestyle in retirement, inflation, healthcare costs, and potential unforeseen expenses.

Given your substantial net worth and relatively low monthly expenses, you may have the option to retire comfortably in a tier 2 city, especially if you continue to manage your finances prudently.

However, it's essential to consider factors such as inflation, healthcare expenses, and potential market fluctuations that could impact your retirement corpus over time.

As a Certified Financial Planner, I recommend conducting a detailed retirement projection analysis to assess whether your current assets are sufficient to sustain your desired lifestyle throughout retirement.

Additionally, continue to monitor and adjust your investment portfolio as needed to ensure it remains aligned with your financial goals and risk tolerance.

Remember, retirement is not just about financial readiness but also about emotional and psychological preparedness. Ensure you have meaningful activities and pursuits planned for your retired life.

With careful planning and ongoing financial management, you can look forward to a comfortable and fulfilling retirement in your tier 2 city.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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

Question by Arun K - May 11, 2024Hindi

Good Morning Sir, I'm 24 years old and earning 20k per month, I started steup SIP of 1000 rupees on Tata Small cap Fund Direct growth from last 3 three months. I want to achieve around 10cr rupees by the age of 50-55 how can I achieve it, please suggest me.

Ans: It's great to hear about your commitment to financial planning at a young age. Building a corpus of 10 crores by the age of 50-55 is an ambitious yet achievable goal with disciplined savings and strategic investments. Here's a customized plan to help you reach your target:

Increase SIP Amount: Considering your current income of 20k per month, try to increase your SIP contributions gradually as your income grows. Aim to invest a higher amount each month to accelerate the growth of your investment portfolio.

Diversified Portfolio: While investing in Tata Small Cap Fund is a good start, consider diversifying your portfolio across different asset classes such as large-cap, mid-cap, and multi-cap funds to spread risk and optimize returns.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Long-Term Investment Horizon: Maintain a long-term investment horizon to benefit from the power of compounding. By staying invested for the long term, you can harness the potential growth of your investments and achieve your financial goals.

Regular Review and Rebalancing: Periodically review your investment portfolio to ensure it remains aligned with your financial objectives and risk tolerance. Rebalance your portfolio as needed to maintain the desired asset allocation.

Explore Additional Income Streams: Look for opportunities to increase your income through side hustles, freelance work, or skill development. Additional income streams can provide extra funds for investments, accelerating your journey towards your financial goals.

Seek Professional Advice: Consider consulting with a Certified Financial Planner (CFP) who can provide personalized guidance and help you create a comprehensive financial plan tailored to your goals and circumstances.

Stay Disciplined and Patient: Building wealth takes time and requires discipline and patience. Stay committed to your savings and investment plan, and avoid impulsive decisions during market fluctuations.

With a disciplined approach to saving and investing, coupled with prudent financial planning, you can work towards achieving your goal of accumulating 10 crores by the age of 50-55.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - Apr 12, 2024Hindi

Please guide us on Health insurance and term insurance policy ?

Ans: Let's delve into the importance of health insurance and term insurance policies in securing your financial well-being:

Health Insurance:

Health insurance is a crucial aspect of financial planning, providing coverage for medical expenses arising from illness or injury.
It safeguards you and your family against the financial burden of healthcare costs, ensuring access to quality medical treatment without depleting your savings.
Choose a comprehensive health insurance policy that offers coverage for hospitalization, pre and post-hospitalization expenses, outpatient treatments, and critical illnesses.
Consider factors such as coverage limit, network hospitals, co-payment clauses, and waiting periods before selecting a policy.
Regularly review your health insurance coverage to ensure it remains adequate for your evolving healthcare needs, especially as you age.
Additionally, consider purchasing a health insurance policy with lifelong renewability to secure coverage in the long term.
Term Insurance:

Term insurance provides financial protection to your family in the event of your untimely demise, ensuring they can maintain their standard of living even in your absence.
It offers a high sum assured at an affordable premium, making it a cost-effective way to secure your loved ones' financial future.
Opt for a term insurance policy with a sum assured that adequately covers your family's financial needs, including outstanding debts, future expenses like education and marriage, and income replacement.
Choose a policy with a flexible tenure that aligns with your financial obligations and life stage. Consider opting for a longer tenure if you have dependents or financial liabilities that may extend into the future.
Regularly review your term insurance coverage to ensure it remains sufficient, especially during significant life events such as marriage, childbirth, or career advancements.
By investing in both health insurance and term insurance policies, you can protect yourself and your loved ones from unforeseen financial setbacks and secure a peaceful future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Savendra - Apr 19, 2024Hindi

Investment + Insurance both should be part of benefits

Ans: Insurance-cum-investment schemes
Insurance-cum-investment schemes (ULIPs, endowment plans) offer a one-stop solution for insurance and investment needs. However, they might not be the best choice for pure investment due to:
• Lower Potential Returns: Guaranteed returns are usually lower than what MFs can offer through market exposure.
• Higher Costs: Multiple fees in insurance plans (allocation charges, admin fees) can reduce returns compared to the expense ratio of MFs.
• Limited Flexibility: Lock-in periods restrict access to your money, whereas MFs provide more flexibility.
MFs, on the other hand, focus solely on investment and offer:
• Potentially Higher Returns: Investments in stocks and bonds can lead to higher growth compared to guaranteed returns.
• Lower Costs: Expense ratios in MFs are generally lower than the multiple fees in insurance plans.
• Greater Control: You have a wider range of investment options and control over asset allocation to suit your risk appetite.
Consider your goals!
• Need life insurance? Term Insurance plans might be suitable.
• Focus on growing wealth? MFs might be a better option due to their flexibility and return potential.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Question by Ramakrishnan - Apr 23, 2024Hindi

I will retire this year at the age of 63. Will have a corpus of around 3 crores out of which I want to have a yearly return of at least 18 lakhs to take care of monthly expenses. How do you suggest to invest ??

Ans: Congratulations on reaching this significant milestone of retirement! With a corpus of 3 crores and a goal of generating an annual income of 18 lakhs, thoughtful investment planning is key. Here's a tailored approach to help you achieve your financial objectives:

Diversify your investments across various asset classes, including equities and fixed income securities, to mitigate risk and enhance returns.

Allocate a portion of your corpus to actively managed equity funds. These funds have the potential to outperform the market, especially during periods of market inefficiencies, offering you the opportunity for higher returns.

Avoid direct funds investing. They may require active management, expertise, and time, which could be challenging, especially during your retirement phase. Instead, consider investing through a Certified Financial Planner (CFP) who can guide you in selecting the right mutual fund distributors (MFDs).

Fixed income investments such as bonds and debt mutual funds can provide stability and regular income. Allocate a significant portion of your corpus to these instruments to meet your income requirements.

Regular review and rebalancing of your portfolio are essential to ensure it remains aligned with your financial goals and risk tolerance. Consider periodic consultations with your CFP to make any necessary adjustments.

Stay informed about market trends and economic developments. Keeping yourself updated will empower you to make informed decisions regarding your investments.

Remember, investing is a journey, and it's essential to remain patient and disciplined. With careful planning and prudent investment decisions, you can enjoy a financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - Apr 12, 2024Hindi

Hello sir.. I am 37 years old. Dont have any investiments as of now.. I can invest 15k per month for long term. Please suggest me some SIP OPTIONS Which suits for me

Ans: It's great that you're considering investing for the long term at 37. SIPs (Systematic Investment Plans) are an excellent way to start building wealth gradually. Here are some suggestions for SIP options that could suit you:

Diversified Equity Funds: Opt for SIPs in diversified equity funds that invest across various sectors and market capitalizations. These funds offer growth potential over the long term while spreading risk across different segments of the market.

Large Cap Funds: Consider investing in large-cap funds, which primarily focus on well-established companies with a track record of stable performance. These funds offer relatively lower risk compared to mid and small-cap funds while still providing opportunities for growth.

Multi-Cap Funds: Multi-cap funds invest in companies across the market capitalization spectrum, offering a balance of growth and stability. These funds adapt to changing market conditions, making them suitable for long-term investors seeking diversification.

Balanced Funds: If you prefer a balanced approach, consider SIPs in balanced funds, which invest in both equities and debt instruments. These funds offer a mix of capital appreciation and income generation, making them suitable for conservative investors.

Sectoral Funds (Optional): If you have a strong conviction about a specific sector's growth potential, you may consider SIPs in sectoral funds. However, keep in mind that sectoral funds carry higher risk due to their concentrated exposure.

When selecting SIP options, consider factors such as your risk tolerance, investment goals, and investment horizon. Additionally, review the fund's track record, fund manager's expertise, and expense ratio before making a decision.

Remember, consistency and patience are key when investing through SIPs. Stay committed to your investment plan, and over time, you can potentially build a significant corpus for your future financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan |1981 Answers |Ask -Follow

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

Asked by Anonymous - Apr 13, 2024Hindi

I am 45 and in a transferable job changing location every few years. I own a house at a location which has not come up the way I had expected. I am renting out the house at a monthly rental of 20000. I want to move out of the present location so I am considering about selling my house. I can expect around 1 Cr for the house. After paying away the loan and tax, I expect to have 65-70 lacs with me. With the going prices, I may not get a suitable house at a location of my liking. Therefore, I was thinking of investing the amount in an index fund for a period of 15 yrs and build a corpus using which I can buy a house then when I am ready to settle down. My family comprises of wife and three school going kids. Is it advisable to follow through the thought process. Kindly advise.

Ans: Considering your circumstances, investing the proceeds from selling your house in an index fund for a period of 15 years could be a prudent approach to building a corpus for future property purchase. Here's a breakdown of the considerations:

Transferrable Job: Given your job's nature, investing in a property at your current location may not be feasible or advisable due to potential frequent relocations. Therefore, investing in financial assets like an index fund offers flexibility and liquidity, allowing you to access funds when needed, irrespective of your location.

Rental Income: While renting out your current property generates monthly income, if the location hasn't appreciated as expected and you plan to move, selling the property could unlock a significant sum. Investing the proceeds can provide long-term growth potential, ensuring financial stability for your family.

Index Fund Investment: Index funds offer diversification and long-term growth potential by tracking a market index's performance. Over 15 years, you can benefit from compounding returns, potentially building a substantial corpus for future property purchase.

Actively managed funds aim to outperform the market through active stock selection and portfolio management, while index funds passively track a specific index's performance.
Benefits of Actively Managed Funds:
Actively managed funds offer the potential for higher returns compared to index funds, especially during market inefficiencies or when skilled fund managers can identify lucrative investment opportunities. Additionally, active management allows for flexibility in portfolio construction and adjustments based on market conditions.
Potential Disadvantages of Index Funds:
While index funds offer low expense ratios and broad market exposure, they may lack the potential for outperformance compared to actively managed funds. Additionally, they're subject to tracking error, which occurs when the fund's performance deviates from the index it's designed to replicate.

Family Considerations: As your family comprises your wife and three school-going kids, ensuring financial security and stability is paramount. Investing in an index fund aligns with your long-term financial goals and can provide for your family's future needs, including housing.

Market Volatility: While index funds offer attractive benefits, it's essential to be aware of market volatility and fluctuations. However, over a 15-year period, market ups and downs tend to balance out, and investing systematically through SIPs can mitigate timing risks.

Financial Planning: Consider consulting with a Certified Financial Planner to develop a comprehensive financial plan tailored to your specific goals and circumstances. They can help assess your risk tolerance, optimize your investment strategy, and ensure alignment with your long-term objectives.

In conclusion, investing the proceeds from selling your house in an index fund for future property purchase is a sound strategy, considering your job's transferable nature and desire for flexibility. With careful planning and a long-term perspective, you can work towards building a substantial corpus to secure your family's housing needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

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