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

Amit Grover  | Answer  |Ask -

Answered on Feb 08, 2012

VivekJain Question by VivekJain on Feb 08, 2012Hindi

I have x amount to start my Business. Should I put x/2 in Office, Stock etc and x/2 for marketing. How important media marketing in today generation ?

Ans: Office, stocks etc. are fixed costs that should be kept to minimum possible. Marketing should take the most money, whether as advertising or as sales people.

You may like to see similar questions and answers below


Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 14, 2023

Hello Mr. Vivek. I want to know what should be the split of our investments in terms of investment categories
Ans: Hello Mr Ashish,

First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction😃

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

You should remember one thing that after deciding on above parameters, TIME IN THE MARKET IS MORE IMPORTANT RATHER THAN TIMING THE MARKET. As an investor, wealth is created over a period of decade and have your allocation to equity accordingly and enjoy the journey of markets which is going to be up and down.

After looking at all these parameters you can think of taking allocations to equity mutual funds and decide how much allocation to equity mutual funds is comfortable to you. If you dont have any prior expertise in investing in mutual funds or equity markets, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing

..Read more


Ramalingam Kalirajan  |5010 Answers  |Ask -

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

Asked by Anonymous - May 31, 2024Hindi
I am a 32 year old. Me and my wife put together earn 4 lakh/month. We have a 2 year old son. We invest in stocks, equity and FD. What should be the ratio of investment for us in these 3 options? Which other investment option we should consider other than these 3?
Ans: Congratulations on your successful career and financial stability at a young age of 32. With a combined monthly income of Rs 4 lakhs and a two-year-old son, it’s important to plan your investments wisely to secure your family’s future. Your current investments in stocks, equity, and fixed deposits (FDs) are a good start. Let’s evaluate your investment strategy and explore other investment options to achieve a balanced and growth-oriented portfolio.

Assessing Your Current Investment Portfolio
Stocks offer high growth potential but come with high risk. Investing directly in stocks requires careful analysis and regular monitoring. It’s important to diversify your stock portfolio to manage risk better.

Equity Mutual Funds
Equity mutual funds provide diversification and professional management. They are less risky than direct stocks and can yield good returns over the long term. Actively managed equity funds can outperform the market and offer better growth.

Fixed Deposits (FDs)
FDs offer safety and guaranteed returns. They are suitable for risk-averse investors but generally provide lower returns compared to equities. FDs should be a part of your portfolio for stability and liquidity.

Optimal Investment Ratio
Suggested Allocation
Given your age and financial goals, an aggressive growth strategy is suitable. Here's a suggested allocation:

Stocks and Equity Mutual Funds: 70%
Fixed Deposits: 20%
Other Investments: 10%
This allocation balances growth potential with stability. It also allows room for exploring other investment options.

Exploring Other Investment Options
Public Provident Fund (PPF)
PPF is a safe, long-term investment option with tax benefits. It offers decent, tax-free returns and is suitable for retirement planning. Investing in PPF ensures capital safety and steady growth.

National Pension System (NPS)
NPS is a government-sponsored pension scheme. It offers a mix of equity, debt, and government securities, providing balanced growth and tax benefits. NPS is an excellent tool for retirement planning.

Mutual Funds
Debt Mutual Funds

Debt mutual funds invest in fixed income securities. They provide stability and regular income with lower risk compared to equity funds. Debt funds are suitable for medium-term goals and act as a buffer against market volatility.

Balanced Funds

Balanced funds invest in a mix of equity and debt. They offer moderate growth with relatively lower risk. These funds are suitable for investors seeking balanced growth and income.

Ensuring Adequate Insurance
Life Insurance
Ensure you have adequate life insurance coverage to protect your family’s financial future. Avoid investment-cum-insurance policies like ULIPs, LIC endowment plans, as they offer lower returns and inadequate insurance cover. Consider surrendering such policies and reinvesting the proceeds in mutual funds.

Health Insurance
Adequate health insurance is crucial. Review your existing health coverage and consider increasing it if necessary. Medical expenses can be substantial, and comprehensive health insurance will protect your savings.

Emergency Fund: The Safety Net
Maintain an emergency fund equivalent to 6-12 months of expenses. This fund should be easily accessible and kept in a high-interest savings account or liquid mutual fund. An emergency fund provides financial security against unforeseen expenses.

Child Education and Future Planning
Child Education Fund
Start a dedicated fund for your child’s education. Investing in child-specific mutual funds or a combination of equity and debt funds can provide substantial growth over time. Regular SIPs will help build a significant corpus.

Systematic Investment Plan (SIP)
SIPs in mutual funds allow disciplined investing and benefit from rupee cost averaging. Increase your SIP contributions in a mix of equity and debt funds to align with your financial goals.

Portfolio Diversification
Diversifying your portfolio is crucial to manage risk and enhance returns. A balanced mix of equity, debt, and other asset classes will provide stability and growth. Regular reviews and rebalancing ensure the portfolio remains aligned with your goals.

Gold is a traditional and reliable investment, acting as a hedge against inflation and economic uncertainty. Consider investing in gold through sovereign gold bonds or gold ETFs. These options offer better returns and safety compared to physical gold.

Tax Planning
Efficient tax planning maximizes your disposable income. Utilize available deductions under Section 80C, 80D, and others. Your contributions to PPF, NPS, and mutual funds (ELSS) help in tax savings while building your corpus.

Regular Review and Adjustment
Regularly review your portfolio’s performance. Market conditions and personal goals change over time. Rebalance your investments to maintain the desired asset allocation. A Certified Financial Planner (CFP) can provide valuable insights and adjustments.

Financial Discipline and Continuous Learning
Maintaining financial discipline is key to achieving your goals. Automate your investments to ensure consistency. Stay informed about financial markets and new investment opportunities. Financial literacy empowers better decision-making.

Professional Guidance
A CFP provides personalized advice aligned with your goals. Their expertise in financial planning ensures optimal investment strategies, tax efficiency, and risk management. Regular consultations help in adapting to changing circumstances and market conditions.

Your current investment strategy is on the right track. By diversifying your investments, increasing SIP contributions, and exploring additional options like PPF and NPS, you can build a robust portfolio. With careful planning and disciplined investing, you can achieve a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5010 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 24, 2024

Hello sir, I am 32 yrs old, I want your advice as to the distribution of investments. How much in MF, equity, gold, etc.
Ans: At 32, it's great that you're thinking about asset allocation. Here’s a breakdown to help you navigate your investments effectively:

1. Assessing Your Goals and Risk Profile
Financial Goals: Identify and prioritize your financial objectives. Common goals might include:

Retirement Savings: Building a nest egg for retirement.
Home Purchase: Saving for a down payment on a house.
Education Fund: Funding your or your children’s education.
Emergency Fund: Ensuring you have enough liquidity for unforeseen expenses.
Risk Tolerance: Your risk tolerance depends on factors like age, income stability, and personal comfort with market fluctuations. Typically, younger investors can afford to take on more risk because they have more time to recover from potential losses.

2. Optimal Allocation Strategy
Balanced Approach: At 32, a balanced portfolio might lean more towards growth-oriented investments like equities but also include safer assets like debt instruments. Here’s a rough guideline:

Equities: 60-70%
Debt Instruments: 20-30%
Gold and Other Assets: 5-10%
3. Equity Mutual Funds
Understanding Equity Mutual Funds: These funds invest in stocks of various companies, offering diversification and professional management. The primary types include:

Large-cap Funds: Invest in large, well-established companies.
Mid-cap Funds: Focus on medium-sized companies with potential for growth.
Small-cap Funds: Target smaller companies with higher growth potential but also higher risk.
Active vs. Passive Funds:

Active Funds: Managed by professionals who make decisions to try to outperform the market.
Passive Funds: Track a market index like the Nifty 50 or S&P 500, generally with lower fees.
4. Benefits of Active Management
Potential for Higher Returns: Active managers aim to outperform the market through strategic stock selection and market timing.
Risk Management: Managers can shift investments to safer assets during market downturns.
Research and Expertise: Active funds benefit from the fund managers’ research and market insights.

5. Gold Investments
Gold as a Hedge: Gold is traditionally considered a safe-haven asset. It performs well during inflationary periods and economic uncertainty.
Gold ETFs: Exchange-Traded Funds (ETFs) that invest in physical gold offer the benefits of liquidity and ease of trading without the hassles of owning physical gold.

6. Avoiding Real Estate
High Capital Requirement: Real estate investments often require significant upfront capital.
Liquidity Issues: Selling property can take time, making real estate less liquid compared to other asset classes.
Market Knowledge: Successful real estate investing requires substantial knowledge and expertise.

7. Consider Debt Instruments
Types of Debt Instruments:

Debt Mutual Funds: Invest in government and corporate bonds, providing steady returns.
Fixed Deposits (FDs): Offer guaranteed returns over a fixed period, typically with lower risk.
Benefits: Debt instruments provide stability and regular income, making them ideal for balancing the risk in your portfolio.

8. Diversification Strategy
Why Diversify?: Diversification reduces risk by spreading investments across various asset classes, sectors, and geographies.
How to Diversify: Invest in a mix of equities, debt, gold, and possibly international assets to protect against market volatility.

9. Review and Rebalance
Regular Review: Periodically (at least annually) review your portfolio to ensure it still aligns with your goals and risk tolerance.
Rebalancing: Adjust your investments to maintain your desired asset allocation. For instance, if equities have grown significantly, you might sell some and invest more in debt instruments to rebalance.

10. Insurance Policies like LIC and ULIPs
Evaluate Performance: Assess the returns and costs associated with insurance-cum-investment products like LIC policies and ULIPs.
Consider Surrendering: If these policies are underperforming or have high costs, it might be wise to surrender them and reinvest in more efficient investment vehicles like mutual funds.

11. Seek Professional Advice
Certified Financial Planner (CFP): A CFP can help tailor a personalized financial plan considering your specific circumstances, goals, and risk tolerance.
Holistic Advice: Professional advice can provide a comprehensive view, including tax planning, retirement planning, and estate planning.

Final Insights
Stay Informed: Keep up-to-date with market trends and changes in economic conditions.
Stay Diversified: Ensure your investments are spread across various asset classes to mitigate risk.
Regularly Reassess: Life circumstances and financial goals can change, so regularly reassess and adjust your financial plan accordingly.

By following this detailed approach, you can build a robust investment portfolio tailored to your goals and risk profile, setting yourself up for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

Latest Questions
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.


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

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