Home > Career > Question
Need Expert Advice?Our Gurus Can Help
Aashish

Aashish Sood  |114 Answers  |Ask -

CAT, Management Expert - Answered on Mar 08, 2024

Aashish Sood is an IIM-Lucknow alumnus who has been teaching maths and quantitative aptitude to MBA aspirants for over a decade.
He also mentors management student hopefuls for the group discussion and personal interview rounds that follow competitive examinations.
He has appeared for CAT seven times since 2016 and scored in the 99.9 percentile.
Sood has 16 years of work experience as a management consultant, strategy consultant and research associate.... more
Sreerash Question by Sreerash on Jan 01, 2024Hindi
Listen
Career

Hello sir, My wife(31 y old) studied 10th std and discontinued in 12th Std(commerce student). She is married now with 2 kids. Her aim is to study MBA (online only). She is a home maker now. How to go about it. Can she complete diploma in business management followed MBA?. can she register for any diploma courses for business management online? Which university provides diploma in business management (online) after 10th std. After completing, diploma course, is she eligible for MBA? Pls suggest.

Ans: Of course she will be eligible for MBA after Diploma

There are several universities and institutions in India that offer diploma courses in business management online, some of which might accept students who have completed 10th standard. Ex: Indira Gandhi National Open University (IGNOU), Sikkim Manipal University Distance Education (SMU-DE), Symbiosis Centre for Distance Learning (SCDL), IMT-CDL (Institute of Management Technology - Centre for Distance Learning), Amity University Online
Career

You may like to see similar questions and answers below

Latest Questions
Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Hello sir, Good Day To You. Now i'm 30. Next month my marriage so I Would like to Start SIP In Mutual Funds For my future. I Have Plan To Start With 5000 Sip Can You please suggest which Fund is best For my SIP. Shall I Continue 5000 Or Step Up By every year. Please Suggest me sir. Yours NELSON
Ans: Nelson. Congratulations on your upcoming marriage! Starting a SIP is a great step towards securing your financial future. Let's discuss how you can effectively plan your investments.

Starting with SIP

You plan to start with Rs 5,000 SIP in mutual funds. This is a wise decision. SIPs offer disciplined investing and benefit from rupee cost averaging.

Choosing the Right Funds

To diversify your portfolio and maximize returns, consider the following categories:

Large Cap Funds: These funds invest in large, well-established companies. They provide stability and moderate returns. Allocate Rs 2,000 monthly.

Mid Cap Funds: Mid cap funds invest in mid-sized companies with high growth potential. They are riskier but can offer higher returns. Allocate Rs 1,000 monthly.

Flexi Cap Funds: These funds invest across market capitalizations. They offer flexibility and balance. Allocate Rs 1,000 monthly.

ELSS Funds: Equity Linked Savings Schemes provide tax benefits under Section 80C. They have a lock-in period of three years. Allocate Rs 1,000 monthly.

Stepping Up SIP

Consider increasing your SIP amount every year. This helps in combating inflation and growing your investments faster. A 10% annual increase is a good starting point.

Benefits of Actively Managed Funds

Actively managed funds are managed by professional fund managers. They aim to outperform the market by selecting high-potential stocks. This approach can offer better returns compared to index funds.

Importance of Regular Funds

Investing through a Certified Financial Planner (CFP) and Mutual Fund Distributor (MFD) offers several advantages:

Professional Guidance: Regular funds provide access to expert advice and management.

Market Insights: Fund managers continuously monitor and adjust the portfolio to market conditions.

Tax Planning

ELSS funds offer tax benefits under Section 80C. Invest up to Rs 1.5 lakh per year in these funds to save on taxes.

Diversification and Risk Management

Diversifying your investments across different fund types reduces risk. It ensures a balanced portfolio that can withstand market volatility.

Long-Term Perspective

Investing in mutual funds should be viewed as a long-term strategy. Stay invested for at least 5-7 years to benefit from compounding and market growth.

Monitoring and Reviewing

Regularly review your portfolio to ensure it aligns with your financial goals. Adjust your investments as needed based on performance and market conditions.

Emergency Fund

Maintain an emergency fund equivalent to 6-12 months of expenses. This fund should be in a savings account or liquid funds for easy access.

Health Insurance

Ensure adequate health insurance coverage for you and your family. This protects your savings in case of medical emergencies.

Final Insights

Nelson, starting a SIP in mutual funds is a great step towards a secure financial future. Diversify your investments, step up your SIPs annually, and consult with a Certified Financial Planner for personalized advice. Maintain an emergency fund and health insurance for added security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Hi Sir, I'm 32 year old and aim to build corpse 3 crore in next 25 year. I have NPS of about 1.80 lakh (monthly 4000), PPF 2lakh(2000monthly) 7 lakh of shares and 7 lakhs of mutual fund holding at present. 50k monthly goes to mutual fund and also contributed to 2 insurance for combine 40lakh which will mature in 20 year. Have 1.40 lakh monthly income and have 1 kid 1year old.
Ans: You are 32 years old and aim to build a corpus of Rs 3 crore in the next 25 years. You currently have:

NPS: Rs 1.80 lakh (Rs 4,000 monthly)
PPF: Rs 2 lakh (Rs 2,000 monthly)
Shares: Rs 7 lakh
Mutual Funds: Rs 7 lakh (Rs 50,000 monthly)
Insurance Policies: Combined Rs 40 lakh, maturing in 20 years
Monthly Income: Rs 1.40 lakh
One Child: 1-year-old
Evaluating Your Financial Goals
To achieve a corpus of Rs 3 crore in 25 years, it's essential to have a structured investment plan. Considering your current investments, income, and responsibilities, let's outline a strategy.

Building Your Investment Strategy
Emergency Fund
Ensure you have an emergency fund to cover at least 6-12 months of expenses. This should be your first priority before making new investments.

Emergency Fund: Rs 8-10 lakh
Review Existing Investments
National Pension System (NPS)
NPS is a good retirement tool. Continue your monthly contributions.

Continue NPS: Rs 4,000 monthly
Public Provident Fund (PPF)
PPF is a safe investment with tax benefits. Keep investing to build a secure fund.

Continue PPF: Rs 2,000 monthly
Shares and Mutual Funds
Your current equity and mutual fund holdings show a strong inclination towards market-linked investments.

Review Portfolio: Ensure diversification across sectors and market caps.
Insurance Policies
You have insurance policies worth Rs 40 lakh maturing in 20 years. Ensure these policies provide adequate coverage.

Review Insurance: Ensure they meet your insurance needs.
Strategic Investment in Mutual Funds
Actively Managed Funds
Actively managed funds can outperform the market. They are managed by professional fund managers.

Benefits: Expert management and flexibility.
Recommendation: Increase allocation to actively managed funds.
Disadvantages of Index Funds
Index funds track specific market indices. They may not outperform the market and lack flexibility.

Average Returns: May not beat the market.
Less Flexibility: Limited response to market conditions.
Monthly SIP Allocation
Allocate a portion of your monthly income to different mutual funds through SIPs.

Large-Cap SIP: Rs 20,000
Mid-Cap SIP: Rs 15,000
Small-Cap SIP: Rs 10,000
Balanced SIP: Rs 5,000
Diversification
Diversify your investments to reduce risk and enhance returns.

Sectoral Diversification: Invest across various sectors.
Geographical Diversification: Consider international funds for global exposure.
Regular Monitoring and Review
Review your investment portfolio regularly to ensure it aligns with your goals. Make adjustments based on market conditions and personal financial changes.

Quarterly Reviews: Assess performance and adjust as needed.
Consulting a Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized investment strategies and help you navigate the complexities of mutual funds and SIPs.

Personalized Advice: Tailored to your financial goals.
Regular Reviews: Ensure your investments stay aligned with your goals.
Additional Considerations
Education and Childcare
Consider setting up a fund for your child's education and future expenses.

Child Education Fund: Start a dedicated SIP for this purpose.
Retirement Planning
While aiming for a Rs 3 crore corpus, also focus on building a secure retirement fund.

Retirement Fund: Consider adding to NPS and PPF for retirement security.
Final Insights
To achieve a corpus of Rs 3 crore in the next 25 years, maintain a balanced and diversified investment strategy. Continue your current contributions to NPS and PPF, increase your SIP investments in mutual funds, and ensure adequate insurance coverage. Regularly review your portfolio and consult with a Certified Financial Planner to stay on track with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Listen
Money
Please suggest mf sip for 5 to 10 years and one large cap ,one small cap for 1l each for 2 years.
Ans: Investing in mutual fund SIPs for 5 to 10 years can help you build a substantial corpus. It’s important to select funds that align with your risk tolerance and investment horizon.

Equity Mutual Funds
Large-Cap Fund:

Advantages:

Invests in top companies with stable growth.

Lower risk compared to mid-cap and small-cap funds.

Recommendation:

Choose a fund with a strong track record.

Look for consistency in performance.

Mid-Cap Fund:

Advantages:

Invests in emerging companies with high growth potential.

Higher returns compared to large-cap funds.

Recommendation:

Opt for a fund with a proven fund manager.

Check the fund’s performance in different market conditions.

Multi-Cap Fund:

Advantages:

Diversified across large-cap, mid-cap, and small-cap stocks.

Balanced risk and return.

Recommendation:

Select a fund that dynamically adjusts its portfolio.

Ensure it has a good performance history.

Debt Mutual Funds
Corporate Bond Fund:

Advantages:

Invests in high-rated corporate bonds.

Provides stable returns with lower risk.

Recommendation:

Choose a fund with a high credit rating.

Look for consistency in returns.

Short Duration Fund:

Advantages:

Invests in debt securities with short maturity.

Less affected by interest rate changes.

Recommendation:

Opt for a fund with a diversified portfolio.

Check the fund’s yield and credit quality.

Hybrid Mutual Funds
Aggressive Hybrid Fund:

Advantages:

Invests in both equities and debt.

Balanced risk with potential for higher returns.

Recommendation:

Choose a fund with a dynamic asset allocation strategy.

Ensure it has a strong track record.

Recommended Lump Sum Investments for 2 Years
Investing Rs. 1 lakh each in large-cap and small-cap funds for a short term of 2 years requires careful selection. Focus on funds with lower volatility and stable performance.

Large-Cap Fund
Advantages:

Invests in well-established companies.

Lower risk and more stable returns.

Recommendation:

Choose a fund with strong financials.

Look for consistent performance over the past 3-5 years.

Small-Cap Fund
Advantages:

Invests in smaller companies with high growth potential.

Higher returns compared to large-cap funds.

Recommendation:

Opt for a fund with a solid track record.

Ensure the fund manager has experience in small-cap investments.

Key Considerations
Diversification
Spread your investments across different asset classes.

Reduces overall risk and enhances returns.

Regular Monitoring
Review your investments periodically.

Make adjustments based on market conditions and personal goals.

Professional Guidance
Consult a Certified Financial Planner for personalized advice.

They can help align your investments with your financial goals.

Emergency Fund
Maintain a separate emergency fund.

Provides financial security during unforeseen events.

Final Insights
Investing in mutual fund SIPs and lump sum in large-cap and small-cap funds can help achieve your financial goals. Focus on diversification, regular monitoring, and professional guidance. This strategy aligns with your medium to moderate risk appetite and ensures capital protection and growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Hi, my name is Sumit and I am 32 years old IT professional. My and my wife's combined income is 2.08 lakh per month. Our home loan is running at 65k monthly emi. Currently i have 2 SIPs which are 5k in Elss and 5k in Flexi cap. Can you suggest best investment plan in which we can save as much as possible and maintain life style as well.
Ans: Sumit. Your combined monthly income is Rs 2.08 lakh. Your home loan EMI is Rs 65,000. You also have SIPs of Rs 10,000 in ELSS and Flexi Cap funds.

Let's break down your financial plan for maximum savings and maintaining your lifestyle.

Current Monthly Income and Expenses

Combined Income: Rs 2.08 lakh
Home Loan EMI: Rs 65,000
SIPs: Rs 10,000
This leaves you with Rs 1.33 lakh for other expenses and savings.

Investment Strategy for Maximum Savings

1. Emergency Fund

Maintain an emergency fund equivalent to 6-12 months of expenses. This fund should be in a savings account or liquid funds.

2. Increasing SIP Contributions

Consider increasing your SIP contributions in equity mutual funds for long-term growth.

Flexi Cap Fund: Continue with your Rs 5,000 SIP in Flexi Cap funds.

ELSS Fund: Continue with your Rs 5,000 SIP in ELSS for tax savings under Section 80C.

3. Diversifying Your Portfolio

Diversify your investments to balance risk and returns. Here are some recommendations:

Large Cap Funds: Allocate Rs 5,000 monthly to large cap funds for stable returns.
Mid Cap Funds: Allocate Rs 5,000 monthly to mid cap funds for potential growth.
Small Cap Funds: Allocate Rs 5,000 monthly to small cap funds for high growth potential.
4. Retirement Planning

Start planning for retirement early. Allocate Rs 5,000 monthly to a retirement fund or a Public Provident Fund (PPF). PPF offers tax benefits and secure returns.

5. Child Education and Future Goals

If you have children or plan to, start saving for their education. Allocate Rs 5,000 monthly to a child education plan or a balanced mutual fund.

6. Health Insurance

Ensure adequate health insurance for your family. This protects your savings in case of medical emergencies.

Monthly Investment Plan

Emergency Fund: Maintain liquidity for emergencies.
Flexi Cap Fund: Rs 5,000 SIP
ELSS Fund: Rs 5,000 SIP
Large Cap Fund: Rs 5,000 SIP
Mid Cap Fund: Rs 5,000 SIP
Small Cap Fund: Rs 5,000 SIP
Retirement Fund/PPF: Rs 5,000
Child Education/Goal Fund: Rs 5,000
Total Monthly Investment: Rs 35,000

Managing Expenses and Lifestyle

Track Expenses: Use apps or spreadsheets to track and manage expenses.
Budgeting: Create a monthly budget to ensure you live within your means.
Discretionary Spending: Allocate a portion of your income for leisure and lifestyle expenses. This ensures you enjoy your lifestyle while saving.
Tax Planning

ELSS Funds: Continue investing in ELSS for tax benefits.
Section 80C: Maximize deductions under Section 80C through PPF, ELSS, and other eligible investments.
Professional Guidance

Consult with a Certified Financial Planner (CFP) for personalized advice. A CFP can help tailor your investments to your goals and risk tolerance.

Final Insights

Sumit, focus on building an emergency fund, increasing SIPs in diversified equity funds, and planning for retirement and children's education. Track your expenses and budget wisely to maintain your lifestyle while saving effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Dear Sir, I am 53 years old having monthly income of Rs. 1,75,000/-. No loan liability. Built own house, daughter 21 yrs, Son 19 yrs. I have no experience of passive income like SIP, MF, etc. pls guide me how should I start investment in SIP and MF?
Ans: You are 53 years old with a monthly income of Rs 1,75,000. You have no loan liabilities and own your house. You have a 21-year-old daughter and a 19-year-old son. You have no experience with passive income investments like SIP and mutual funds.

Evaluating Your Financial Goals
Your primary goals could be:

Building a retirement corpus
Funding your children's education or marriage
Ensuring financial security
Setting Up Your Investment Plan
Emergency Fund
Ensure you have an emergency fund to cover at least 6-12 months of expenses. This should be your first priority.

Emergency Fund: Rs 10-12 lakh
Understanding SIP and Mutual Funds
Systematic Investment Plan (SIP)
SIP allows you to invest a fixed amount regularly in a mutual fund scheme. It helps in averaging the cost and reduces market volatility risks.

Benefits: Disciplined investing, rupee cost averaging, and compounding.
Mutual Funds
Mutual funds pool money from many investors to invest in securities like stocks, bonds, and other assets. They are managed by professional fund managers.

Types of Mutual Funds:
Equity Funds: Invest in stocks; high risk, high return.
Debt Funds: Invest in bonds; lower risk, stable return.
Balanced Funds: Mix of equity and debt; moderate risk and return.
Starting Your Investment
Step-by-Step Guide to Start SIP and Mutual Funds
Step 1: Assess Your Risk Appetite
Determine how much risk you are willing to take. Generally, at your age, a balanced approach is advisable.

Step 2: Define Your Investment Goals
Set clear goals for each investment, such as retirement, children's education, or marriage.

Step 3: Choose the Right Mutual Funds
Opt for a mix of equity and debt funds to balance risk and return.

Equity Funds: For long-term growth.
Debt Funds: For stability and regular income.
Balanced Funds: For a mix of growth and stability.
Step 4: Start SIPs
Invest regularly through SIPs. This will help in averaging the cost and reducing market volatility risks.

Monthly SIP Allocation: Start with a portion of your disposable income.
Suggested Allocation
Monthly SIP Allocation
Allocate Rs 50,000 monthly across different mutual funds through SIPs.

Equity Funds SIP: Rs 25,000
Debt Funds SIP: Rs 15,000
Balanced Funds SIP: Rs 10,000
Diversification
Diversify your investments to reduce risk and enhance returns.

Sectoral Diversification: Invest across various sectors.
Geographical Diversification: Consider international funds for global exposure.
Regular Monitoring and Review
Review your investment portfolio regularly to ensure it aligns with your goals. Make adjustments based on market conditions and personal financial changes.

Quarterly Reviews: Assess performance and adjust as needed.
Consult a Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized investment strategies and help you navigate the complexities of mutual funds and SIPs.

Personalized Advice: Tailored to your financial goals.
Regular Reviews: Ensure your investments stay aligned with your goals.
Final Insights
Starting investments in SIPs and mutual funds at 53 can provide a secure financial future. Begin with an emergency fund, assess your risk appetite, and set clear investment goals. Diversify your investments between equity, debt, and balanced funds through SIPs. Regularly review your portfolio and seek the expertise of a Certified Financial Planner for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Hi sir I recently loss my job and I have personal Emi and taken loans from apps. which is aroundly have to pay Emi 35 k in a month and loan apps like Paytm , moneyview daliy calling and threating . I worried and I should not have focussed on anything. Please help from this situation
Ans: Losing a job and facing debt can be overwhelming. It is important to act swiftly to manage your financial situation.

Assess Your Financial Situation
List All Debts:

EMI of Rs. 35,000 per month.
Loans from various apps like Paytm and MoneyView.
Prioritize Debts:

Identify which debts have the highest interest rates.
Focus on these high-interest loans first.
Create a Budget
Calculate Monthly Expenses:

List essential expenses (rent, utilities, groceries).
Identify non-essential expenses you can cut.
Allocate Funds:

Ensure you cover essential expenses first.
Allocate remaining funds towards debt repayment.
Communicate with Lenders
Contact Loan Providers:

Explain your job loss situation.
Request for a temporary reduction or deferment in EMI payments.
Negotiate Repayment Terms:

Ask for extended repayment periods.
Request for lower interest rates if possible.
Seek Professional Help
Certified Financial Planner:

Consult a Certified Financial Planner for personalized advice.
They can help you create a debt management plan.
Credit Counseling Services:

Consider reaching out to credit counseling services.
They can negotiate with creditors on your behalf.
Increase Income Sources
Look for Temporary Work:

Consider part-time or freelance work.
Explore gig economy jobs like food delivery or ride-sharing.
Sell Unnecessary Assets:

Sell items you no longer need.
Use the proceeds to pay off debts.
Emergency Measures
Emergency Fund:

If you have an emergency fund, use it to cover essential expenses.
Avoid depleting it completely, keep some funds for unforeseen emergencies.
Friends and Family:

Consider borrowing from trusted friends or family.
Ensure you create a clear repayment plan to avoid misunderstandings.
Legal and Supportive Measures
Understand Your Rights:

Familiarize yourself with the laws regarding debt collection.
Loan apps must follow legal protocols; report any harassment.
Emotional Support:

Seek support from friends, family, or support groups.
Managing stress and mental health is crucial during this time.
Final Insights
Facing job loss and debt can be daunting. Take immediate steps to manage your finances. Prioritize essential expenses and debt repayment. Communicate with lenders and seek professional help. Look for temporary income sources and consider selling unnecessary assets. Protect your mental health and seek support from loved ones. With a strategic approach, you can navigate this difficult period and regain financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
I wanted to create my first crore by investing in stock or mutual fund.please advise my current monthly investment are as follows 5k in ulip,10k in other ulip (for five years so that I can reinvest after five years again that amount) 10k psu direct mutual fund 4k in other mutual fund. 3k in digital gold. 1lakh one time in quant for five years And 31k in PF+epf And my home loan 23k and personal loan 25k. Please guide me.
Ans: Evaluating Your Current Investments and Liabilities

Let's first understand your current financial position and investments. You are investing in various avenues and also have significant loans to manage.

Monthly Investments

ULIPs: Rs 5,000 + Rs 10,000
PSU Direct Mutual Fund: Rs 10,000
Other Mutual Fund: Rs 4,000
Digital Gold: Rs 3,000
One-time Investment in Quant: Rs 1 lakh (for five years)
PF + EPF: Rs 31,000
Monthly Liabilities

Home Loan EMI: Rs 23,000
Personal Loan EMI: Rs 25,000
Goals and Strategy to Reach Your First Crore

Your goal is to create a corpus of Rs 1 crore by investing in stocks or mutual funds. Let's outline a plan to achieve this.

Reassessing ULIPs

ULIPs combine insurance and investment. However, they often have high charges and lower returns compared to pure investment products.

Action Step: Consider stopping new investments in ULIPs once the lock-in period ends. Redirect this money to mutual funds for better returns.
Focusing on Mutual Funds

Mutual funds, particularly actively managed funds, can provide better returns. You already invest in PSU direct mutual funds and other mutual funds.

PSU Direct Mutual Fund: Direct funds may lack professional advice. Consider switching to regular funds managed by a Certified Financial Planner (CFP) for better guidance.
Other Mutual Fund: Evaluate performance and ensure it's aligned with your goals.
Digital Gold Investment

Digital gold is convenient but may not offer the best returns compared to equity mutual funds.

Action Step: Consider reducing or stopping investments in digital gold and reallocating to equity mutual funds.
Optimizing One-time Investment in Quant

You have invested Rs 1 lakh in Quant for five years. Ensure it aligns with your risk tolerance and goals. Regular review is essential.

EPF and PF Contributions

Your EPF and PF contributions are significant and provide stability. Continue these contributions for a secure retirement.

Managing Loans

Your home loan and personal loan EMIs total Rs 48,000 per month. High EMIs can strain your finances.

Action Step: Prioritize repaying the personal loan due to higher interest rates. Once the personal loan is cleared, consider using the freed-up amount to invest more in mutual funds.
Suggested Investment Strategy

1. Equity Mutual Funds

Diversify Across Categories: Invest in large-cap, mid-cap, and small-cap funds for a balanced portfolio.
Systematic Investment Plan (SIP): Continue or start SIPs in diversified equity mutual funds.
2. Reducing ULIP Contributions

Reinvest in Mutual Funds: Once the ULIP lock-in period ends, redirect funds to equity mutual funds for higher returns.
3. Professional Guidance

Certified Financial Planner (CFP): A CFP can help you choose the right funds and strategies.
4. Emergency Fund

Maintain Liquidity: Keep an emergency fund equivalent to 6-12 months of expenses in a savings account or liquid funds.
Action Steps for a 1 Crore Corpus

Stop New ULIP Investments: Redirect to equity mutual funds.
Review and Switch PSU Direct Fund: Consider regular funds with CFP guidance.
Reduce Digital Gold Investment: Reallocate to equity mutual funds.
Prioritize Loan Repayment: Focus on clearing the personal loan first.
Increase SIPs in Equity Mutual Funds: Once loans are repaid, increase SIP contributions.
Regular Review

Regularly review your investment portfolio and adjust as needed. Stay informed about market trends and consult with a CFP for ongoing advice.

Final Insights

To achieve your first crore, focus on equity mutual funds, reduce investments in ULIPs and digital gold, and prioritize loan repayments. Regularly review and adjust your investments with the guidance of a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
Hi Team My before tax salary is roughly 5.6 lakh per month and I am hoping to get 3.75 in had (after tax and pf cut) I just took a car loan and planning to secure home loan which will cost me 1.25 lakh per month together. My monthly expenses are 1 lakh roughly That's leaves me another 1.5 lakh which I need to invest I am confused between keeping that in savings account for sbi max saver to pay lower intreste along Or Invest lakh into MF and rest 50 in max savings. Which option would be better and if I choose to go with MF options can you suggest few MF to balance my portfolio Thanks in advance
Ans: You have a before-tax salary of Rs 5.6 lakh per month and an after-tax salary of Rs 3.75 lakh. Your car loan and planned home loan together cost Rs 1.25 lakh per month. Your monthly expenses are roughly Rs 1 lakh. This leaves you with Rs 1.5 lakh for investments.

Evaluating Investment Options
You are considering whether to keep money in a savings account like SBI Max Saver or invest in mutual funds (MF). Let’s evaluate these options.

Savings Account (SBI Max Saver)
The SBI Max Saver account allows you to save on interest by offsetting your home loan balance with your savings.

Benefits: Reduces interest on home loan, offers liquidity, and safe.
Drawbacks: Lower returns compared to mutual funds.
Mutual Funds
Mutual funds offer the potential for higher returns through various investment options, but with higher risk compared to savings accounts.

Benefits: Higher returns, variety of options, and long-term growth.
Drawbacks: Market risk, not as liquid as savings account.
Suggested Investment Strategy
Hybrid Approach
A hybrid approach can balance the benefits of both options.

Invest Rs 1 lakh in Mutual Funds: For higher returns.
Keep Rs 50,000 in SBI Max Saver: For liquidity and interest offset.
Benefits of a Hybrid Approach
Risk Management: Diversifies risk between safe savings and higher-return investments.
Liquidity: Ensures you have liquid funds for emergencies.
Debt Reduction: Helps in reducing home loan interest through SBI Max Saver.
Choosing Mutual Funds
Actively Managed Funds
Actively managed funds can outperform the market with strategic decisions by professional fund managers.

Professional Management: Expert fund managers handle your investments.
Flexibility: Adapt to market changes effectively.
Suggested Allocation for Mutual Funds
Large-Cap Funds: For stability and steady returns.
Mid-Cap Funds: For growth potential.
Small-Cap Funds: For higher returns but with more risk.
Balanced Funds: For a mix of equity and debt.
Investment Allocation
Monthly Allocation
Allocate Rs 1 lakh across different mutual funds through SIPs (Systematic Investment Plans).

Large-Cap SIP: Rs 40,000
Mid-Cap SIP: Rs 30,000
Small-Cap SIP: Rs 20,000
Balanced SIP: Rs 10,000
Diversification
Diversify your investments to reduce risk and enhance returns.

Sectoral Diversification: Invest across various sectors.
Geographical Diversification: Consider international funds for global exposure.
Regular Monitoring and Review
Review your investment portfolio regularly to ensure it aligns with your goals. Make adjustments based on market conditions and personal financial changes.

Quarterly Reviews: Assess performance and adjust as needed.
Final Insights
Balancing your investments between SBI Max Saver and mutual funds can provide both liquidity and higher returns. Invest Rs 1 lakh in a diversified portfolio of mutual funds and keep Rs 50,000 in the SBI Max Saver account to reduce your home loan interest. Regularly review your investments to stay on track with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 19, 2024Hindi
Listen
Money
Hello, Good day I am 38 years old, living in Bangalore. Married with no kids (don't plan on having any either) and a dog. I earn about 1.3L per month, no liabilities/loans & own my own house valued around 3.5 Cr. I have about 1.2L invested in the share market since I am new to it, about 23 L invested into mutual funds with an SIP of 40k per month, 13L in EPF and I have about 4L saved as emergency funds invested in SBI Ultra short duration fund and about 40 L in gold assets. I also pay a premium of 2L per year towards Tata aia life insurance - Smart Income Plus wihich will give a regular payout by 2027. My monthly expenses come to around 60k ( without SIP's and Premiums), our house expenses are shared between me and my wife. I will be inheriting a sum of around 4.2 Cr shortly and need advise on how best to make this work for me and my retirement. I would like to retire between the age of 45 to 47 yo. My expectation from this inheritance is to get an additional income of 2L per month and for the capital to grow at a reasonable rate of about 8 to 10 % post the 2L payout. My resk apperite is medum to moderate and would like to protect atleast the capital. Kindly Advise.
Ans: Financial Assessment
You are 38 years old with no children and a dog. You earn Rs. 1.3 lakh per month and own a house worth Rs. 3.5 crore. Your investments include:

Rs. 1.2 lakh in the share market
Rs. 23 lakh in mutual funds with Rs. 40,000 SIP per month
Rs. 13 lakh in EPF
Rs. 4 lakh in an emergency fund in an ultra-short duration fund
Rs. 40 lakh in gold assets
Rs. 2 lakh per year in Tata AIA Life Insurance - Smart Income Plus
You will inherit Rs. 4.2 crore and wish to retire by 45-47 years with an additional monthly income of Rs. 2 lakh and capital growth of 8-10%.

Current Investment Strategy
Share Market
Advantages:

Potential for high returns.

Diversifies your portfolio.

Disadvantages:

High volatility.

Requires active management.

Mutual Funds
Advantages:

Professional management.

Diversification across sectors.

Disadvantages:

Management fees.

Market-linked risks.

EPF
Advantages:

Safe and secure.

Tax benefits.

Disadvantages:

Limited liquidity.

Lower returns compared to equities.

Emergency Fund
Advantages:

Provides liquidity.

Low-risk investment.

Disadvantages:

Lower returns.

Limited growth potential.

Gold Assets
Advantages:

Hedge against inflation.

Safe and tangible asset.

Disadvantages:

Limited income generation.

Price volatility.

Life Insurance
Advantages:

Provides life cover.

Future regular payouts.

Disadvantages:

High premiums.

Limited investment growth.

Recommendations for Inherited Funds
Equity Mutual Funds
Invest a portion in equity mutual funds for growth.

Allocation: Rs. 1.5 crore

Reason: Potential for high returns.

Strategy: Diversify across large-cap, mid-cap, and multi-cap funds.

Debt Mutual Funds
Invest in debt mutual funds for stability.

Allocation: Rs. 1 crore

Reason: Provides regular income.

Strategy: Choose funds with moderate risk and stable returns.

Hybrid Funds
Hybrid funds balance growth and income.

Allocation: Rs. 50 lakh

Reason: Balanced risk and return.

Strategy: Invest in balanced advantage or equity hybrid funds.

Systematic Withdrawal Plan (SWP)
Use SWP for regular monthly income.

Allocation: Rs. 1 crore in debt and hybrid funds

Reason: Provides Rs. 2 lakh per month.

Strategy: Set up a SWP to withdraw Rs. 2 lakh monthly.

Diversified Equity Portfolio
Invest a portion in direct equities for potential high returns.

Allocation: Rs. 50 lakh

Reason: Leverage stock market growth.

Strategy: Diversify across different sectors and companies.

Review and Rebalance
Regularly review and rebalance your portfolio to align with your goals.

Frequency: Quarterly or semi-annually

Adjustments: Based on market conditions and personal goals.

Final Insights
To retire by 45-47 years with an additional Rs. 2 lakh per month, allocate your inherited funds wisely. Invest in a mix of equity, debt, and hybrid funds. Use a Systematic Withdrawal Plan for regular income. Regularly review and rebalance your portfolio. This strategy aligns with your financial goals and risk profile, ensuring a secure and prosperous retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5030 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 19, 2024Hindi
Money
Hi, sorry it's a very long post My mother is 60year old homemaker(nil income) and father is 68yr old retired govt employee (recieving pension).we are 3 children [2 daughters ( all aged between 30-40yr)]to our parents.All of us are married and earning for our livelihood. We sisters are contributing to parents health insurance and other financial things since we started earning and even after marriage ( as my father is an alcoholic too not looking after the household well).Mother has a property in her name given to her by her father as a gift deed. Father had one house and a plot in his name and some ancestral property. Brother went to abroad for studies in 2018 and came back in 2020. He had a girlfriend since his college days( he married to her in 2022, never had objection from anyone of family members ). Since his arrival, he and his girlfriend started involving in all financial matters of my maternal house to the extent he was using my father's debit card for his own use( father says he has given card to brother willfully). Brother wanted to construct a commercial building in my mother's property. He and my father started threatening my mother to register her property ( actually located near Brother's girlfriend house) in name of brother saying if she doesn't agree ,they won't marry off my sister( who got married in 2022 in the presence of grandparents, mother and myself and both my father and brother didn't attend the marriage). They even extracted money from mother's account (which was given now and then to her by me and my sister).During all these process even brother's girlfriend ( wanted a source of income by renting my parents house)also started abusing my mother and involved in all financial matters ( that freedom was given to her by father and brother as my mother was suppressed and we sisters were not aware of things going on). Everything led to the abandonment of my mother who stayed in her friend's place then I brought her to my house. Now after 3 years ( during the course our wellwishers tried counselling and mediation between my father, brother and mother without sisters which didn't work out). my brother got my parents house( and a plot which was in my father's name) registered to his name as a gift deed from my father without informing mother. All the documents of the property gift deeded to my mother by her father is with my brother and father. They are threatening my mother if she enters her own property. Now my mother has no place and income though she had contributed extensively to upliftment of the family all over these years. She ran a grocery store for 15years during which one plot was bought and house was built in that. Another plot was bought after my parents marriage with the help of dowry money given to my father ) but all the properties were registered in my father's name. She has her contribution financially, emotionally and physically. Now doesn't my mother has right to ask back the house and the property given to my brother without her knowledge and to ask for maintenance from my father and also sue all three of them for mental and physical torture..? We sisters want her to lead a peaceful life in her final years of her life.. please guide us.
Ans: Evaluating Your Mother’s Rights

Your mother has been through a lot. Let's explore her legal and financial rights. She deserves to live peacefully in her final years.

Legal Rights Over Property

Your mother owns property gifted by her father. She has full rights over this property. The property can’t be taken without her consent. If your brother and father took documents, this is illegal.

Action Steps for Property

Retrieve Documents: Seek legal help to get back property documents.
Consult a Lawyer: Discuss the possibility of reclaiming the property.
File a Complaint: If threatened, your mother can file a police complaint.
Maintenance from Your Father

Your father has a duty to support your mother. She can claim maintenance from him. This can be done through legal channels.

Action Steps for Maintenance

Seek Legal Advice: A lawyer can help your mother file for maintenance.
Family Court: File a petition in family court for maintenance.
Right to Ancestral Property

Your mother contributed to the family. She can claim a share in ancestral property. The law supports her right to ancestral property.

Action Steps for Ancestral Property

Legal Consultation: Discuss the possibility of claiming ancestral property.
File a Suit: If needed, file a suit for partition of ancestral property.
Mental and Physical Torture

Your mother faced mental and physical torture. This is a serious issue. She can seek legal action against your brother, father, and sister-in-law.

Action Steps for Torture

File a Complaint: Lodge a complaint with the police for harassment.
Protection Orders: Seek protection orders from the court.
Health Insurance and Financial Support

You and your sister have supported your parents. Continue to ensure health insurance coverage. Your mother may need financial support until her rights are restored.

Action Steps for Financial Support

Joint Efforts: Continue supporting your mother financially.
Plan for Future: Set up a fund for your mother’s needs.
Investments for Secure Future

Consider investing in mutual funds for your mother’s secure future. Regular funds with the help of a Certified Financial Planner (CFP) are beneficial. Avoid direct funds due to lack of professional advice.

Benefits of Regular Funds

Professional Management: CFPs manage the funds, ensuring optimal returns.
Less Hassle: No need for your mother to manage investments actively.
Tailored Advice: Investments tailored to her risk profile and needs.
Regular Review of Investments

Regularly review investments with a CFP. Adjust them based on your mother’s needs and market conditions. This ensures her financial security.

Final Insights

Your mother has rights over her property. She can claim maintenance from your father and her share in ancestral property. Legal action can be taken for mental and physical torture. Continue supporting her financially and ensure her health insurance coverage. Invest wisely with professional advice for her secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x