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Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 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
Ravi Question by Ravi on Mar 20, 2024Hindi
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I want 1 crore for corpus. I invest monthly SIP 30000/- . Pls suggest best fund.

Ans: the best fund for you depends on several factors, including:

Investment Horizon: How long do you plan to invest until you need the Rs. 1 crore? A longer timeframe allows for more aggressive investments with higher growth potential but also higher risk.
Risk Tolerance: How comfortable are you with potential losses? Lower risk tolerance suggests a more conservative portfolio with a larger debt allocation.
Financial Goals: Is this Rs. 1 crore for retirement, a child's education, or another goal? Your goals will influence your investment strategy.
Here's what I can recommend:

Consult a Certified Financial Planner (CFP): A CFP can consider your unique circumstances and create a personalized investment plan to achieve your Rs. 1 crore goal.

Consider a Diversified Portfolio: Don't put all your eggs in one basket. A diversified portfolio with a mix of asset classes (equity, debt, etc.) can help manage risk. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Start an SIP in Equity Funds: If you have a long investment horizon and a moderate risk tolerance, consider a Systematic Investment Plan (SIP) in diversified equity mutual funds. SIPs help you invest regularly and benefit from rupee-cost averaging.

Here's an example (not a recommendation):

Invest in a Multi-Cap Fund (SIP): A Multi-Cap Fund invests across market capitalizations (large, mid, small).

Invest in a Flexi-Cap Fund (SIP): A Flexi-Cap Fund allows the fund manager more flexibility in choosing companies across market capitalizations.

Invest in a Debt Fund (SIP): A Debt Fund provides stability and regular income.

Remember:

There's no guaranteed path to Rs. 1 crore. Investment markets are volatile, and returns cannot be guaranteed.

Review Regularly: Review your portfolio (at least annually) with your CFP to ensure it remains on track.

By consulting a CFP and building a diversified portfolio, you can increase your chances of achieving your Rs. 1 crore goal!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

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

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Sir I am 44 years old and I am in Government Service, I want to make some corpus fund for my family. Kindly please suggest me best mutual funds or something else for SIP.
Ans: It's commendable that you're thinking ahead to secure your family's financial future. Let's explore some suitable options for building a corpus through SIPs.

Considering your age and stable income from government service, investing in mutual funds through SIPs can be an excellent choice for wealth accumulation. Here are a few considerations:

Diversification: Opt for a diversified portfolio of mutual funds across different asset classes like large-cap, mid-cap, and flexi-cap funds. This diversification helps spread risk and maximize returns over the long term.

Risk Profile: Assess your risk tolerance and investment horizon before selecting mutual funds. Since you're looking to build a corpus for your family, you may consider a balanced approach with a mix of equity and debt funds to manage risk effectively.

Fund Selection: Choose mutual funds with a consistent track record of performance and managed by experienced fund managers. Look for funds with low expense ratios and a focus on long-term wealth creation.

Financial Goals: Define your financial goals clearly, whether it's education expenses for your children, retirement planning, or creating an emergency fund. Tailor your SIP investments to align with these objectives.

Regular Review: Periodically review your mutual fund portfolio and make adjustments as needed based on changes in your financial situation or market conditions. Stay informed about market trends and economic developments to make informed investment decisions.

As a Certified Financial Planner, I recommend consulting with a CFP to assess your financial situation comprehensively and develop a personalized investment plan tailored to your needs and goals. A CFP can provide valuable insights and guidance to help you navigate the complexities of investment planning.

In conclusion, by investing systematically through SIPs in well-diversified mutual funds and seeking professional advice, you can work towards building a corpus to secure your family's financial future.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 02, 2024

Asked by Anonymous - Aug 31, 2024Hindi
Money
I want a corpus of 2 crore in next 10 years. How much will be the monthly SIP and pls advise some funds
Ans: You’ve set a goal to accumulate Rs. 2 crore in 10 years. This is ambitious and achievable with disciplined investing. Let's explore how to achieve this.

Estimating the Required Monthly SIP
Target Corpus:
To reach Rs. 2 crore, you need to invest consistently. The amount of monthly SIP depends on expected returns.

Expected Returns:
Assuming a moderate return rate from mutual funds (around 12% per annum), you would need to invest a significant amount every month.

Monthly SIP Calculation:
A Certified Financial Planner would suggest that to achieve Rs. 2 crore, you should consider a monthly SIP of around Rs. 85,000 to Rs. 1 lakh, depending on the exact returns. This might seem high, but it's aligned with your goal.

Importance of Actively Managed Funds
Avoiding Index Funds:
Index funds may not give you the required returns. They follow the market and lack the potential for higher gains. Actively managed funds, on the other hand, are handled by professional fund managers. These managers aim to outperform the market, which could help in reaching your goal faster.

Regular Funds via MFD:
Direct funds might seem cost-effective, but regular funds through a trusted MFD with CFP credentials can provide better long-term results. MFDs offer professional advice, regular reviews, and adjustments to your portfolio. They ensure that your investments stay on track.

Suggested Fund Categories
Large-Cap Funds:
These funds invest in well-established companies. They are stable and offer consistent returns. Allocating a portion to large-cap funds reduces risk while ensuring steady growth.

Mid-Cap Funds:
Mid-cap funds have the potential for higher returns compared to large-cap funds. They invest in companies that are in the growth phase. Including mid-cap funds in your portfolio can enhance your overall returns.

Small-Cap Funds:
Small-cap funds are riskier but offer the possibility of higher returns. These funds invest in smaller companies with high growth potential. A small allocation here can boost your corpus if the companies perform well.

Flexi-Cap Funds:
Flexi-cap funds offer flexibility in investment. They can invest across different market capitalizations based on market conditions. These funds adapt to market changes, which can be beneficial in a volatile market.

Balancing Your Portfolio
Diversification is Key:
Don’t put all your money in one type of fund. A well-diversified portfolio across large-cap, mid-cap, small-cap, and flexi-cap funds will spread risk and optimize returns.

Review Regularly:
Regularly review your portfolio with the help of a Certified Financial Planner. Adjustments might be needed based on market conditions and your financial situation.

Risk Assessment and Management
Understand Your Risk Appetite:
Investing in mutual funds involves risk. It's crucial to understand your risk tolerance. If you're not comfortable with high risk, allocate more towards large-cap and flexi-cap funds.

Stay Invested:
Market fluctuations are normal. Don't panic during market corrections. Staying invested for the long term is key to achieving your financial goals.

Emergency Fund:
Before committing to high SIPs, ensure you have an emergency fund. This fund will cover unexpected expenses and prevent you from dipping into your investments.

Tax Considerations
Tax Efficiency:
Equity mutual funds are tax-efficient. Long-term capital gains (LTCG) up to Rs. 1 lakh per annum are tax-free. Gains above this threshold are taxed at 10%. Plan your investments to maximize tax efficiency.

Section 80C Benefits:
You can also consider tax-saving mutual funds under Section 80C. These funds have a lock-in period of three years but offer tax benefits along with potential returns.

Additional Financial Goals
Retirement Planning:
While working towards your Rs. 2 crore goal, don’t neglect retirement planning. Ensure that you are also contributing towards a retirement corpus. Consider options like PPF, NPS, or dedicated retirement funds.

Insurance Needs:
Ensure you have adequate life and health insurance. These are crucial for financial security. If you hold LIC, ULIP, or other investment cum insurance policies, it might be wise to review them. Surrendering these policies and reinvesting in mutual funds could yield better returns.

Steps to Start Your SIP
Choose a Reputable AMC:
Select a reputed Asset Management Company (AMC) with a good track record.

Consult a Certified Financial Planner:
Seek advice from a Certified Financial Planner to select the best funds suited to your risk profile and financial goals.

Automate Your SIPs:
Set up automatic SIPs to ensure disciplined investing. This reduces the temptation to skip payments and keeps you on track.

Finally
Achieving a Rs. 2 crore corpus in 10 years requires a disciplined approach. With the right selection of actively managed funds and regular monitoring, you can reach your goal. Diversify your investments, stay invested, and consult a Certified Financial Planner to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

Asked by Anonymous - Oct 07, 2024
Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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.

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