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Sushil

Sushil Sukhwani  |328 Answers  |Ask -

Study Abroad Expert - Answered on Jul 04, 2023

Sushil Sukhwani is the founding director of the overseas education consultant firm, Edwise International. He has 31 years of experience in counselling students who have opted to study abroad in various countries, including the UK, USA, Canada and Australia. He is part of the board of directors at the American International Recruitment Council and an honorary committee member of the Australian Alumni Association. Sukhwani is an MBA graduate from Bond University, Australia. ... more
Sreekumar Question by Sreekumar on Jul 03, 2023Hindi
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My son wants to go for MS degree in US. He is working as software engineer for one year now. Please advise pros and cons. Thanks,

Ans: Hello Sreekumar,

To begin with, thank you for contacting us. Choosing to pursue a Master of Science (MS) degree in the United States can be a significant decision with several pros and cons to consider. Here are some factors to keep in mind:

Pros:
1. Advanced Education: An MS degree can provide specialized knowledge and advanced skills in a particular field, allowing your son to deepen his expertise and stay competitive in the job market.

2. Career Opportunities: Many employers value candidates with advanced degrees, and an MS can enhance his chances of landing higher-level positions or advancing his career in the software engineering field.

3. Networking: Studying in the US can provide excellent networking opportunities, allowing your son to connect with industry professionals, potential mentors, and fellow students who may become valuable contacts in the future.

4. Research Opportunities: If your son is interested in pursuing research or academia, an MS degree can serve as a stepping stone towards a Ph.D. program and open doors to research positions or teaching opportunities.

5. Exposure to Diverse Perspectives: Studying in the US exposes students to a culturally diverse environment, which can broaden their horizons, foster global awareness, and provide a rich learning experience.

Cons:
1. Financial Considerations: Pursuing an MS degree in the US can be costly, including tuition fees, living expenses, and potentially higher healthcare expenses. It's important to carefully assess the financial implications and explore scholarships, grants, or assistantships to help mitigate costs.

2. Competitive Admissions: Admission to reputable MS programs can be highly competitive, especially in sought-after fields. Your son will need to prepare a strong application, including competitive test scores, letters of recommendation, and a compelling statement of purpose.

3. Temporary Stay: Pursuing an MS degree usually involves a temporary stay in the US on a student visa. It's essential to be aware of the associated visa requirements, potential limitations on employment, and the need to return to one's home country after completing the degree, unless pursuing further work authorization or education.

4. Personal Adjustments: Moving to a different country for studies can be a significant adjustment, including adapting to a new culture, lifestyle, and potentially being away from family and friends. Your son should be prepared for the challenges of living abroad and maintaining a support network.

For more information, you can visit our website.
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Sushil

Sushil Sukhwani  |328 Answers  |Ask -

Study Abroad Expert - Answered on Jul 31, 2023

Asked by Anonymous - Jul 11, 2023Hindi
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My son wants to go for undergraduate in US. Please advise pros and cons. Thanks,
Ans: Hello,

First and foremost, thank you for getting in touch with us. With your son's interest in pursuing undergraduate education in the USA, it's critical that you understand the many benefits and downsides. Here’s a summary:

Pros:

1. Academic Excellence: Universities in USA provide excellent education and research opportunities, with degrees that are recognized worldwide.

2. Array of Options: The United States offers a wide range of academic programs and majors, allowing students to customize their education to their interests and future prospects.

3. Research Possibilities: Colleges in USA have well-funded research programs that allow students to partake in cutting-edge studies, work with renowned scholars, and earn priceless experience.

4. Build global networks: Study in USA allows your son to interact with students from many cultures, establishing a strong global network for future professional opportunities.

5. Career Opportunities: A degree from the United States improves career opportunities internationally since employers value the abilities and global exposure earned.

6. Extracurricular Activities: Extracurricular activities, clubs, and organizations at US universities often allow students to develop leadership abilities and pursue interests outside of academics.

Cons:

1. Exorbitant Price: International students studying in the United States endure higher tuition rates than domestic students, causing a major financial strain. Furthermore, living expenses, viz., housing and healthcare, add to the overall price.

2. Immigration and Visa Rules: Navigating the US visa procedure can be challenging and time-consuming. Your son must make sure he fulfills all the requirements and keeps up with any changes to the policy.

3. Culture Shock: Moving to a foreign country can be challenging, and your son might face culture shock. Getting used to a new environment, lifestyle, and social conventions takes time and patience.

4. Away from Home: For some students, being far from home can be emotionally stressful, particularly during significant events or trying times.

5. Competitive Admissions: Admission to prestigious US institutions can be fiercely competitive, and meeting the admission requirements can be a challenging procedure.

6. Medical Insurance: In the US, health insurance is mandatory, but it may also be pricey. Understanding coverage and selecting the appropriate plan is critical for overseas students.

The decision to study in USA depends on your son's particular circumstances, academic interests, and professional objectives. Pursuing a US undergraduate education can be satisfying if he is passionate about a certain field and aware of the difficulties and opportunities. Making an educated decision requires research into colleges, programs, and scholarships.

For more information, you can visit our website.
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Sushil

Sushil Sukhwani  |328 Answers  |Ask -

Study Abroad Expert - Answered on Sep 27, 2023

Career
Dear Sushil ji, My husband completed his MBA from IIM dubai in 2009. Right now he is working as an Asst. Manager in a private industry from the last 14years. Now he is ready to make his goal as to study MS in USA by his own money. Now his age is 38years with 14years work experience. Can he apply for the universities in USA. If yes is he required GRE score for january '24 application? Please advice/suggest us. And aslo if yes please suggest which course are helpful for better future..
Ans: Hello D,

To begin with, thank you for contacting us. I am happy to hear about your husband’s plans to pursue an MS in the USA. To answer your question first, considering your husband’s background, having acquired 14 years of professional experience, and even at the age of 38 years, it is indeed possible for him to now apply for MS (Master’s of Science) programs in the United States. Candidates who have acquired different experiences are highly sought-after by a number of universities in the USA. Taking into account this factor, your husband’s MBA degree in 2009 from IIM Dubai, will definitely be a plus point, which I believe, in turn, will definitely make him an invaluable asset. I suggest that you take the below mentioned factors into consideration and then make a final decision:

1. Take into account your husband’s age and years of professional experience:
Your husband’s decision to pursue a Master’s degree in the USA is a wise choice. Although his age may not match the ages of the other candidates opting for a Master’s course, I would like to let you know that having acquired 14 years of professional experience will definitely serve as a plus point in this academic pursuit. Candidates with diverse work experiences having been employed at different companies, are often preferred by the Admissions committees. Your husband’s 14 years of professional experience surely brights to light his level of maturity, unwavering dedication, and the different ways in which he can prove to be a perfect fit for the program he intend pursuing.

2. Researching and Shortlisting Programs:
This is a crucial step in the application process, wherein your husband needs to conduct an extensive study and shortlist programs that align with his interests and academic objectives. Considering his background, I believe, he would surely wish to pursue management, and business-oriented programs or maybe programs in an associated field that matches his abilities. Accordingly, he can look into programs viz., Master of Science in Finance (MSF), Master of Science in Management (MSM), or Master of Science in Information Technology (MSIT), etc. I suggest that he selects the perfect program, and for that he will need to investigate universities and the programs they have to offer, and finally select the one that best resonates with his professional ambitions.

3. Appearing for the GRE as a program prerequisite: Addressing your query concerning whether or not your husband would need to appear for the Graduate Record Examination (GRE), I would like to inform that you will need to inquire with the specific university and program your husband intends applying for. Each university and program has varying prerequisites. In my opinion, the GRE standardized test may be a necessity while applying for certain programs. On the other hand, considering your husband’s past educational accomplishments and professional experience, other programs may not require him to appear for the GRE. I suggest that he meticulously investigates the entry criteria of the universities and courses he wishes to apply to.

4. Applying to universities and programs: As a part of the application procedure, your husband will need to submit important documents. I recommend that he prepares an excellent application. He will need to submit a compelling Statement of Purpose, endorsement letters from professors and employers who can attest to his academic achievements and character, as well as results of mandatory standardized exams. He should strongly focus on his professional experience and explain how it makes him the perfect fit for the program he intends applying to. I recommend that he begins the application process beforehand.

5. Plan your Finances: I know that studying in the USA is a costly affair, and for that reason, your husband should budget his finances correctly, so as to cover his cost of education, including living and tuition costs, as well as other miscellaneous expenditures. Also, a number of grants, scholarships, and other forms of financial aid, in addition to part-time employment possibilities, are offered by majority of the universities. I recommend that your husband looks into the available assistantships, scholarships etc. as these can help alleviate the high costs of studying.

6. Obtaining a Valid Visa and following Immigration Guidelines: Your husband, on securing admission, will be required to obtain a valid student visa in order to study in USA. An F-1 visa is the required one. I recommend that he conducts an extensive study and prepares for the visa application process.

7. Consider Long-Term Prospects: Your husband should take into account his prospects for the future and understand in what way the Master’s program opted for by him resonates with these prospects. I believe that undertaking internships, career guidance, and building connections while still pursuing his Master’s degree will go a long way in enabling your husband bag employment possibilities upon graduating.

Summarizing the above, I would like to tell you that taking both, your husband’s age and professional experience into account, he is eligible to apply for USA Master’s programs. Nevertheless, I recommend that he conducts a comprehensive research and opt for those courses that best match his aspirations. Not just that, he should also make a compelling application as well as possess a sound financial strategy. I also suggest that he finds out whether or not the particular programs require him to appear for the GRE or not, and that he adheres to other prerequisites for admission if required.

For more information, you can visit our website.
(more)
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Moneywize

Moneywize   |100 Answers  |Ask -

Financial Planner - Answered on May 01, 2024

Asked by Anonymous - Apr 24, 2024Hindi
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What is e-insurance all about? How should I convert my physical insurance policy into digital format? Please guideI am 70-year-old. Which insurance company can issue a mediclaim policy to senior citizens like me?
Ans: Here’s a response regarding e-insurance, converting physical policies, and mediclaim options for senior citizens in India, keeping in mind your age and potential limitations with technology:

E-Insurance (Electronic Insurance)

E-insurance refers to purchasing and managing insurance policies entirely online. This eliminates the need for physical paperwork and offers several benefits:

• Convenience: Access and manage policies 24/7 from anywhere with an internet connection.
• Speed: Get quotes and purchase policies quickly without waiting for agents or mail.
• Transparency: Easily view policy details, track claims, and renew coverage online.
• Efficiency: Pay premiums electronically and receive claim settlements faster.

Converting Physical Policies to Digital Format

While directly converting a physical policy to digital format might not be an option with all insurers, many companies offer the ability to manage existing policies online after registering on their websites or apps. Here's a general process (steps may vary by insurer):

• Visit your insurer's website. Look for a section on "Customer Login" or "Policy Management."
• Register or create an account. You'll likely need policy details like policy number and your personal information.
• Link your existing policy. Once registered, follow the insurer's instructions to link your physical policy to your online account.
• If you encounter difficulties, contact your insurance company's customer service department for assistance. They can guide you through the process or provide alternative solutions.

Mediclaim Policies for Senior Citizens in India

Many insurance companies in India offer mediclaim (health insurance) policies specifically designed for senior citizens. These plans typically cater to the unique needs of older adults, considering factors like:

• Pre-existing conditions: Look for policies with shorter waiting periods for coverage of pre-existing ailments.
• Renewal options: Choose plans that guarantee renewal throughout your lifetime, even if you develop health conditions.
• Network hospitals: Opt for policies with a wide network of hospitals to ensure convenient access to healthcare facilities.
• Sum insured: Select a sufficient sum insured to cover potential medical expenses.

Considering Your Age:

Given your age of 70, it's advisable to:

• Contact your existing insurance company: They might offer the option to manage your policy online or suggest a senior-friendly mediclaim plan.
• Seek help from family members or trusted advisors: If navigating online processes is challenging, involve someone you trust to assist you in researching and comparing plans.

Remember:

• Read policy documents carefully before purchasing any mediclaim policy. Understand the coverage details, exclusions, and claim settlement procedure.
• Disclose pre-existing medical conditions accurately during the application process to avoid claim rejections.

I hope this information empowers you to make informed decisions about your insurance needs!
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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We have sold land for rs. 32 lakh... How much capital gain i need to pay..
Ans: I can't calculate your exact capital gains tax on the land sale as it depends on several factors not mentioned yet. However, I can explain how it's generally calculated in India and provide some guidance:

Factors affecting your capital gains tax:

Holding period: There are two types of capital gains tax on land - long-term capital gains (LTCG) and short-term capital gains (STCG).
LTCG applies if you held the land for more than 24 months. It benefits from an indexation mechanism that adjusts the purchase price for inflation, reducing your taxable gains.
STCG applies if you held the land for 24 months or less. The tax is calculated on the difference between the selling price and the purchase price without indexation.
Purchase price: This is the original price you paid for the land along with any documented improvement costs.
Sale price: This is the amount you received for the land sale minus any selling expenses.
Tax Rates:

LTCG: Currently, LTCG on land is taxed at 20% with indexation. However, you can save tax on LTCG by reinvesting the gains in specific options like new residential property or government bonds under relevant sections of the Income Tax Act.
STCG: STCG on land is taxed at a flat rate of 20% without indexation.
Recommendation:

To determine your exact capital gains tax liability, it's best to consult a chartered accountant (CA) or a tax advisor. They can consider all the factors mentioned above and calculate the tax based on your specific situation. They can also advise you on potential tax saving options available under the Income Tax Act for LTCG.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Anil, Good morning. I wish to invest in forthcoming RBI Gold Bond. Is it wise to invest in this instrument for long term benefit ?
Ans: Sovereign Gold Bonds (SGBs) issued by the RBI can be a good option for long-term investment in gold, depending on your overall financial goals and risk tolerance. Here's a breakdown of the pros and cons to help you decide:

Pros:

Safe investment: SGBs are backed by the Government of India, making them a safe investment.
Assured returns: You get a fixed interest rate (currently 2.5%) on your investment, paid semi-annually, regardless of gold price fluctuations.
Tax benefits: Capital gains at maturity are exempt from tax if you hold the bond till maturity. Interest income is taxable, but not subject to TDS.
Eliminates storage risks: You avoid the risks and costs associated with storing physical gold.
Liquidity: SGBs are tradable on stock exchanges after the initial lock-in period (usually 5 years).
Cons:

Lock-in period: SGBs typically have a lock-in period, limiting your access to the principal amount during that time.
Price volatility: The gold price itself can fluctuate, and you might not get a high return if the price falls significantly during the investment period.
Lower returns compared to other options: SGBs may offer lower returns compared to some stocks or mutual funds over the long term.
Overall, SGBs can be a good fit for investors seeking a safe and reliable way to invest in gold for the long term. They offer a hedge against inflation and currency fluctuations, with the added benefit of regular interest income.

Here are some additional things to consider:

Your investment horizon: If you need access to your money before the maturity period, SGBs might not be the best option.
Your risk tolerance: If you are uncomfortable with price fluctuations in gold, SGBs might not be ideal.
Your portfolio allocation: SGBs should ideally be a part of a diversified portfolio, not your sole investment.
It's wise to do your own research and consult with a financial advisor before investing in SGBs. They can help you assess your risk tolerance and determine if SGBs are a good fit for your financial goals.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Jan 09, 2024Hindi
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I am absolutely confused with multiple mutual funds launched by endless FUNDS. What is going on, i think this not a healthy investment scene for small and medium investors. Just like other professionals like law, medical, private education it seems that Mutual funds are working for the benefit of Advisors, Broking Housing and big bags. It seems All of them are flourishing on insider trading and virtually fleecing their retail clients by passing on reverse recommendations. Is no Regulation required for saving the small investors from this free for all.Regulation.
Ans: It's understandable to feel overwhelmed by the vast array of mutual funds available in the market. The investment landscape can indeed seem complex, especially for small and medium investors navigating their way through various options.

Regulation is crucial in ensuring fairness and transparency in the financial markets, particularly to protect retail investors from potential exploitation. Regulatory bodies like the Securities and Exchange Board of India (SEBI) play a vital role in overseeing mutual funds and enforcing compliance with regulatory standards.

However, despite regulations, it's essential for investors to remain vigilant and informed about their investment decisions. Educating oneself about the fundamentals of investing, understanding different types of mutual funds, and seeking advice from trustworthy sources can help mitigate risks associated with investing.

While there may be instances of misconduct or unethical practices in the industry, many financial advisors and professionals genuinely strive to serve their clients' best interests. Choosing a reputable advisor or financial planner who operates with integrity and transparency can significantly enhance the investment experience for retail investors.

As investors, it's crucial to advocate for greater transparency, accountability, and investor protection measures within the financial industry. By staying informed, engaging with regulatory authorities, and holding financial institutions accountable, we can contribute to creating a more equitable and secure investment environment for all.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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A portfolio of 10 Crore in next 5 years. Want to start 80-90 k sip in MF but not in Indian market. YOUR ADVISE REQUIRED? Me and my wife jointly monthly income three Lakh per month. By profession I am a PVC flex material trader, my wife is training centre owner. Having two cute nd naughty son 4 yrs and 2 yrs old. Myself Vishal Choubey nd My wife shanti both aged 39 years. Having 5 houses Rental income arround 55k per month collectively. 1 CR term insurance for both of us in case something happens. An lic of 6 Lac going to mature 2026. Till 31st March 2024 PPF Vishal (10L)+ 10(L) shanti. Ujjivan bank 9k share @ 21rs, Mix share 2Lac. Edelweiss greater China 3.1Lacs, Axis China fund 5.2 Lakh, An sip of 49000/- in Nippon Taiwan current investment 7.37 Lakh market value 9.53 lakh, 3k sip in icici tax fund. Idfc tax fund an investment of 70k is now 2.6 Lakh, Many fund got doubled in last 3-4 years Approx 50 lakh MF portfolio. FD 14 Lakh. A land parcel of 1 acre approx 40 Lakh. All the assets are created in last 10yrs. Wish to sell one apartment and invest into China fund your advise required?
Ans: Vishal and Shanti, it's inspiring to see how diligently you've built your portfolio over the years, especially while juggling busy professional lives and raising two adorable sons. Your dedication to securing your family's future is truly commendable.

Considering your aspirations to grow your portfolio to 10 Crore in the next 5 years, diversifying your investments beyond the Indian market through SIPs in MFs is a prudent move. It reflects your forward-thinking approach to wealth creation.

Before deciding to sell one of your apartments to invest in the China fund, reflect on the potential risks and rewards. Are you comfortable with the level of exposure to international markets, especially given the current geopolitical climate? Would the sale of the apartment significantly impact your overall financial stability and future plans?

As a Certified Financial Planner, my advice would be to carefully evaluate your investment goals, risk tolerance, and the long-term prospects of the China fund before making any decisions. Your journey towards financial success is a testament to your hard work and resilience. Keep navigating with wisdom and foresight, always prioritizing the well-being of your family.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hello Sir. In Jan 2025, I'll receive a lumpsum of Rs 11L from one of my prior investment. I want to put this money in mutual funds. My horizon is 10 years. I want this corpus to be used for child college education. Please suggest how to go for it.
Ans: Your plan to invest the lump sum of Rs 11 lakh for your child's college education is a prudent step. Considering your 10-year investment horizon, here's a suggested approach:

Goal Clarity: Define the expected expenses for your child's college education, factoring in tuition fees, living expenses, and other related costs. This will give you a clear target to aim for with your investment.
Risk Tolerance Assessment: Assess your risk tolerance to determine the appropriate allocation between equity and debt funds. Since you have a 10-year horizon, you can consider a relatively aggressive approach with a higher allocation to equity funds for potentially higher returns.
Diversified Portfolio: Build a diversified portfolio by investing in a mix of equity and debt mutual funds. Equity funds can provide growth potential, while debt funds offer stability and capital preservation.
Asset Allocation: Allocate a significant portion of the lump sum towards equity funds to harness the potential for long-term capital appreciation. You can consider allocating the remainder to debt funds to provide stability and mitigate downside risk.
Regular Review: Monitor the performance of your mutual fund investments regularly and rebalance your portfolio if needed to maintain your desired asset allocation.
Tax Efficiency: Consider tax-efficient investment options such as Equity Linked Savings Schemes (ELSS) for equity investments and Tax-Saving Fixed Deposits or Debt Funds for debt investments to optimize tax benefits.
Systematic Withdrawal Plan (SWP): As your child's college education approaches, consider setting up an SWP from your mutual fund investments to meet the educational expenses systematically while continuing to benefit from potential market growth.
By following these steps and staying disciplined with your investment strategy, you can work towards building a corpus that will support your child's college education aspirations over the next decade. It's always advisable to consult with a Certified Financial Planner to tailor the plan according to your specific circumstances and goals.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Sir, Is it good to have bhandan small cap fund and quant small cap fund sip of 12k each per month for my two daughters education for a period of 12-13 years Any further addition required here . Or extra step up sip required. Both my girls are 5 months old now. Note: i have the notion that i wont spend too much money on any donation schemes for education foe my daughters for college[so mostly Doctor studies is ruled out] so only engineering/CA kind of studies is what i can afford . Regards Sai
Ans: It's heartening to see your dedication to securing your daughters' future. Starting SIPs for their education at such a young age reflects your foresight and commitment as a parent.

Investing in Bhandan Small Cap Fund and Quant Small Cap Fund SIPs for their education is a thoughtful choice. But let's ponder: are these investments sufficient to cover the rising costs of higher education? Considering inflation and evolving educational landscapes, would a step-up SIP or additional investments be prudent?

As you envision their academic journey, it's essential to ensure financial preparedness without compromising on your principles. By consulting a Certified Financial Planner, you can chart a path that aligns with your aspirations and financial capabilities.

Your decision not to rely on donation schemes for their education is admirable. It reflects your belief in the value of hard work and diligence, qualities you undoubtedly wish to instill in your daughters.

Embrace this journey with confidence and optimism, knowing that every rupee invested today is a step towards a brighter tomorrow for your daughters.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Apr 30, 2024Hindi
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Respected Ramalingam Sir, greetings. I am 49yrs. My present investments (1). Monthly 20k SIP, (2) Rs.10lk into Equity linked MF thru STP. (3) PPF maturing by 2026 March end with 15years tenure, expecting Rs.24lk. If I target to have monthly fixed income around Rs.3 or 4lakhs after retirement at my 60yrs of age by 2036, please suggest hiw should I go further in investing? As said, PPF is maturing in 2026 March. Should i continue for 5 more years or to invest that amt in Mutual funds or sny other to ge more gain? Appreciate your expert suggestions and advise. Thank you.
Ans: It's wonderful to hear about your dedication to securing your financial future. As you approach retirement, it's natural to seek stability and security in your investments. With your SIPs and equity-linked MFs, you're already on a commendable path.

As your PPF matures in 2026, you have an opportunity to reassess your investment strategy. Consider the balance between risk and reward. Should you extend the PPF tenure or explore other avenues like mutual funds? It's a decision that requires thoughtful consideration.

Imagine the possibilities of continuing to grow your wealth over the next decade. Are there investment avenues that align better with your goals and risk tolerance? A Certified Financial Planner can guide you through this journey, offering expertise and reassurance.

Remember, investing is not just about numbers; it's about peace of mind and confidence in your future. Your journey towards financial security is a testament to your resilience and foresight. Keep moving forward with optimism and wisdom.
(more)
Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Sir I invest 1 lakh rs lumsum in Quant small cap fund and I will invest every year Lumsum investment in that fund when the market dip, I will do it for atleast 10 year's, will I get good returns, is this strategy right..?
Ans: Investing a lump sum amount in a small-cap fund like Quant Small Cap Fund and then investing additional lump sums during market dips can be a part of a sound investment strategy, but it's important to understand the risks and nuances involved.

Here's a breakdown of the strategy and considerations:

Investing in Small Cap Funds: Small-cap funds have the potential to offer high returns over the long term, but they also come with higher volatility and risk. These funds invest in smaller companies with higher growth potential but may also be more susceptible to market fluctuations.
Lump Sum vs. SIP: Investing a lump sum amount followed by additional lump sum investments during market dips can be an effective strategy to take advantage of market volatility. However, it's essential to be mindful of timing and not try to time the market perfectly, as this can be challenging and risky.
Diversification: While investing in small-cap funds can potentially offer high returns, it's crucial to ensure diversification across asset classes and fund types to mitigate risk. Consider allocating a portion of your portfolio to other asset classes like large-cap funds, mid-cap funds, debt funds, and even safer options like fixed deposits or bonds.
Long-Term Horizon: Investing with a long-term perspective (at least 5-10 years or more) can help smooth out the impact of short-term market fluctuations and take advantage of the power of compounding. Be prepared to stay invested through market downturns and avoid making emotional decisions based on short-term market movements.
Risk Management: Assess your risk tolerance and investment goals before allocating a significant portion of your portfolio to small-cap funds. These funds can be volatile, and there's a possibility of temporary losses during market downturns. Ensure that you have an emergency fund and appropriate insurance coverage in place to handle unexpected financial needs.
Regular Review: Monitor the performance of your investments regularly and make adjustments as needed based on changes in your financial situation, investment goals, and market conditions. Rebalance your portfolio periodically to maintain your desired asset allocation.
In summary, investing in small-cap funds like Quant Small Cap Fund and adding lump sum investments during market dips can be a part of a well-rounded investment strategy, provided it aligns with your risk tolerance, investment goals, and time horizon. However, ensure diversification, stay invested for the long term, and regularly review your portfolio to make informed decisions. Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances.
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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.

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