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Ramalingam

Ramalingam Kalirajan  |7206 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 09, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Amey Question by Amey on Jun 09, 2024Hindi
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Career

Thank you sir for your advice. Much appreciated. I shall follow the same

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
Career

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Ramalingam

Ramalingam Kalirajan  |7206 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 04, 2024

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Sir, Im a 48yrs old, my monthly salary is 2.5L my expense and my family expense i need 1L per month. I planning to leave my work from June-2026. In-between this period i can invest a month 1.5L. I can invest from this Dec-2024,So where i can invest for my future, which plan is best return give to me?. If i invest mutual fund or stack market or Nifty -50, how many year need to invest? minimum. 1 year or 1.5 year can invest monthly basis? or 5 years above plan only have.? Pls give me your guidance. Im confusing about . Thanks & Regards Prakash from Thanjavur, Dt
Ans: Your Current Financial Snapshot
Age: 48 years.
Monthly Salary: Rs. 2.5L.
Expenses: Rs. 1L per month.
Monthly Savings Potential: Rs. 1.5L from Dec 2024 to June 2026.
Retirement Planned: June 2026 (1.5 years away).
Your focus should be on ensuring financial security post-retirement and balancing short-term and long-term returns.

Key Investment Strategy
1. Short-Term Investments (1.5 Years)
Since your investment horizon is limited, focus on low-risk options with stable returns.

Debt Mutual Funds: Ideal for low volatility and reasonable returns. Use short-duration or liquid funds for flexibility.
Fixed Deposits or Recurring Deposits: Use these for safe, guaranteed returns with easy liquidity.
Sovereign Bonds (T-Bills): Consider Treasury Bills for short-term secure returns.
Avoid heavy exposure to equities or Nifty-50 for this period due to potential market volatility.

2. Post-Retirement Monthly Income Plan
After retiring in June 2026, ensure a steady cash flow with the following allocation:

Systematic Withdrawal Plan (SWP): Invest a portion in balanced or conservative hybrid funds to withdraw monthly income while preserving capital.
Senior Citizens’ Savings Scheme (SCSS): Once eligible at 60, invest for a regular, safe income with high returns.
Debt Instruments: Keep part of your corpus in FDs or debt mutual funds for liquidity.
3. Long-Term Growth Strategy
If you can continue investing beyond June 2026, allocate part of your corpus to equity for inflation-beating growth:

Equity Mutual Funds: Diversify across large-cap, mid-cap, and multi-cap funds for growth.
SIP in Nifty-50 Index Funds: These are suitable for moderate risk-takers seeking simple, long-term returns.
Balanced Advantage Funds: Ideal for long-term goals with dynamic asset allocation.
For long-term equity investments, a horizon of 5+ years is recommended to mitigate market volatility.

Step-by-Step Plan for Monthly Savings (1.5 Years)
Allocate Rs. 1.5L monthly as follows:

Rs. 75,000 (50%): Debt mutual funds or fixed deposits for short-term stability.
Rs. 45,000 (30%): Balanced advantage funds for moderate risk and growth.
Rs. 30,000 (20%): Large-cap equity funds or Nifty-50 index funds for long-term growth (only if you extend beyond 1.5 years).
Additional Recommendations
Emergency Fund: Ensure you have at least Rs. 12-15L as an emergency fund before investing aggressively.
Health Insurance: Upgrade your health insurance to cover unforeseen medical expenses post-retirement.
Tax Planning: Maximise benefits under Section 80C through ELSS, PPF, or EPF. Use other tax-saving instruments as applicable.
Avoid Overexposure to Stocks: Direct stock investments are riskier unless you have expertise. Stick to diversified mutual funds.
Final Insights
For 1.5 years, focus on low-risk investments like debt funds and FDs.
Extend equity investments for at least 5 years to see meaningful growth.
Balance risk and returns by diversifying across asset classes.
Regularly review your portfolio and adjust based on retirement needs.
For personalised planning, connect with a Certified Financial Planner to align investments with your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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