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Jinal

Jinal Mehta  |95 Answers  |Ask -

Financial Planner - Answered on Feb 12, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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Pramod Question by Pramod on Oct 29, 2023Hindi
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need 2 crores in 15 year how much MF need to invest

Ans: Without understanding your goals, risk profile or anything i cannot suggest anything.
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  |7172 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

Ramalingam

Ramalingam Kalirajan  |7172 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

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I need to get 5 crore in 15 years for my children higher study.. Marriage and my early retire... How much should I invest in mutual fund to achieve the target.... My current income is 2 lakh per month and monthly expenses of 1.7 lakh per month
Ans: Firstly, let me commend you on your foresight in planning for your children's higher education, marriage, and your early retirement. It's crucial to start early and set clear financial goals to ensure a secure future for yourself and your loved ones.

Understanding Your Financial Goal

Your goal of accumulating ?5 crore in 15 years for various life events requires careful financial planning and disciplined savings. It's essential to assess your current financial situation and determine the required investment amount to achieve this target.

Analyzing Income and Expenses

Your monthly income of ?2 lakh and expenses of ?1.7 lakh indicate a healthy surplus that can be utilized for investments. It's commendable that you have a comfortable margin between your income and expenses, which provides room for savings and investments.

Estimating Required Investment Amount

To estimate the required investment amount to accumulate ?5 crore in 15 years, we need to consider factors such as:

Time Horizon: With a 15-year investment horizon, you have a reasonable timeframe to achieve your goal, allowing you to benefit from the power of compounding.

Rate of Return: The expected rate of return on your investments plays a crucial role in determining the required investment amount. While past performance is not indicative of future results, historical data can provide insights into potential returns.

Systematic Investment Plan (SIP): Investing through SIPs allows you to regularly invest fixed amounts over time, leveraging the benefits of rupee cost averaging and compounding.

Calculating Required Monthly Investment

Based on the estimated rate of return and investment horizon, we can calculate the required monthly investment amount to achieve your target corpus of ?5 crore in 15 years. By factoring in the power of compounding, we can determine the optimal investment strategy to reach your financial goal.

Assuming a conservative rate of return on your investments, we can use financial planning tools to calculate the monthly SIP amount needed to accumulate ?5 crore in 15 years. By inputting variables such as the expected rate of return, investment duration, and target corpus, we can arrive at the required monthly investment amount.

Benefits of Actively Managed Funds

Actively managed mutual funds offer several advantages over passive index funds or ETFs:

Professional Management: Skilled fund managers actively monitor market trends and adjust portfolio allocations to capitalize on growth opportunities, potentially leading to higher returns.

Customized Strategies: Actively managed funds employ dynamic investment strategies tailored to market conditions and investment objectives, providing investors with a personalized approach to wealth accumulation.

Disadvantages of Direct Funds

Direct funds require investors to research and select funds independently, which can be time-consuming and challenging for those with limited financial knowledge. Additionally, the absence of professional advice may result in suboptimal investment decisions and higher risks.

Benefits of Regular Funds Investing through MFD with CFP Credential

Investing in regular funds through a Certified Financial Planner (CFP) credentialled Mutual Fund Distributor (MFD) offers several benefits:

Professional Guidance: A CFP-certified MFD provides personalized investment advice tailored to your financial goals and risk profile, helping you make informed decisions.

Access to a Wide Range of Funds: MFDs offer access to a diverse range of mutual funds, including both actively managed and index funds, enabling you to build a well-rounded investment portfolio.

Final Words

Achieving a target corpus of ?5 crore in 15 years requires a disciplined savings approach and strategic investment planning. By investing regularly in mutual funds through SIPs and leveraging the benefits of compounding, you can work towards realizing your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |7172 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 28, 2024

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Hello Sir, From last 1 year I have been investing 20K every month and from last 3 months I increased to 60K/month. I want to achieve 1 Crore goal in 5 years. Please advise how much should I invest every month and which MF should I select? Thank you.
Ans: Reaching Rs. 1 crore in 5 years is ambitious yet achievable. Your disciplined investment approach of Rs. 20,000 monthly for a year and increasing to Rs. 60,000 monthly is commendable. Let’s assess how much you need to invest and the ideal mutual fund categories to consider for your goal.

Factors Impacting Your Goal Achievement
1. Time Horizon of 5 Years
Five years is a short time for aggressive equity investments.
Your portfolio should balance growth with safety to reduce risk.
2. Expected Returns
Historical data suggests equity mutual funds may offer 10-12% returns annually.
Debt mutual funds typically provide 6-8% annual returns.
A blended portfolio with equity dominance can maximise growth.
3. Inflation Impact
Rs. 1 crore today will have lesser purchasing power in five years.
Your investment plan should account for inflation-adjusted growth.
Estimating Monthly Investments
Current SIP of Rs. 60,000
With consistent contributions and moderate returns, you can approach your goal.
Additional monthly investments may be required for a higher margin of safety.
Recommended Monthly Investment
Based on target returns, increase SIP by 10-15% annually.
You may need Rs. 70,000 to Rs. 80,000 monthly to confidently reach Rs. 1 crore.
Suggested Mutual Fund Allocation
A balanced and diversified portfolio is crucial for your goal.

1. Large-Cap Equity Mutual Funds
Suitable for stable growth with lower volatility.
Invest around 30-35% of your portfolio here.
2. Mid-Cap and Small-Cap Mutual Funds
Offer higher growth potential but come with increased risks.
Allocate 40-45% of your portfolio in this segment.
3. Hybrid Mutual Funds
Combine equity and debt for a balanced risk-return approach.
Invest 10-15% in hybrid funds for stability.
4. Debt Mutual Funds
Suitable for preserving capital and reducing volatility.
Allocate 10% to safeguard your portfolio against market fluctuations.
Avoid Index Funds for Your Goal
Disadvantages of Index Funds
They mirror the market and lack active management to mitigate risks.
Returns depend entirely on market performance, which may not suit short-term goals.
Benefits of Actively Managed Funds
Skilled fund managers adjust portfolios based on market conditions.
They aim for higher returns by selecting the best-performing stocks.
Regular vs Direct Mutual Funds
Disadvantages of Direct Plans
Lack of guidance can lead to poor fund selection and portfolio mismanagement.
Navigating market volatility requires expertise, which direct plans don’t provide.
Benefits of Investing Through Certified Financial Planners
Certified planners offer personalised advice based on your goals and risk profile.
They monitor and rebalance portfolios to optimise returns.
Tax Implications of Mutual Fund Investments
Equity Mutual Funds
Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.
Short-term gains are taxed at 20%.
Debt Mutual Funds
Gains are taxed as per your income tax slab.
Plan withdrawals carefully to minimise tax liability.
Investment Strategy and Best Practices
1. Increase SIP Contributions Annually
A 10-15% increase in SIP ensures inflation-adjusted growth.
2. Diversify Across Fund Categories
Spread investments across equity, hybrid, and debt funds for balance.
3. Review Portfolio Regularly
Monitor fund performance and make necessary adjustments annually.
4. Reallocate Funds Closer to Goal
Shift investments to debt funds 12-18 months before withdrawal.
This reduces exposure to market risks near your goal’s end.
Final Insights
Your disciplined investment habit is an excellent foundation. Increase your SIP amount moderately and diversify wisely to reach your Rs. 1 crore target in five years. Actively managed funds, guided by a certified financial planner, will ensure an optimal risk-return balance. Regular reviews and adjustments will keep you on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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I am currently in 1 year CSE at NIT Warangal, please suggest me some additional courses with which I can improve my skills and get a good placement
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Upon reviewing the skills identified and those recommended by your Senior Students and Faculty, you will be positioned to finalize the Certifications you intend to pursue. Below are some recommended certification courses you may consider pursuing, contingent upon feedback from your senior students and faculty in the CSE Department: Programming Foundations, Data Structures and Algorithms (DSA), Web Development, App Development, Competitive Programming, Machine Learning and AI, Cybersecurity, Cloud Computing, and Blockchain. Acquire proficiency in programming languages such as C, C++, Python, and Java. Engage in practice through platforms like freeCodeCamp, HackRank, and CodeChef. Explore Python libraries including NumPy, Pandas, and TensorFlow, as well as delve into ethical hacking, network security, AWS, Microsoft Azure, and Google Cloud. All the BEST for Your Prosperous Future.

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Hi sir, I am worked 5 years in company and resigned, company given me FnF and not giving me 2 Months incentive they saying company will not give incentive left employees and they also not giving fnf break up, please help me what should I do now
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Dear Mam I am a fifty year old man with a loving family. I was employed in a company which I left earlier. During COVID I was little stressed in another company on my job and I rejoined my earlier company. One of my female colleague who was in the earlier organisation during my first innings helped me to join the organisation and in my second innings we are the only two in the department. Naturally there are lots of conversations, communications, interactions related to work. She is around nine years younger than me and is unmarried. We used to share lots of moments in office like common topics, health, my family, friends, her parents, friends etc...apart from work. Gradually I started developing feelings for her. I have a notion that she also developed the same. There has neither been any physical intimacy nor joint outings outside office. But as you know both of us started to realise that I cannot sail in two boats at the same time and also she. We both share a very professional relation amongst us in the Office with boundaries and caution and rarely interact on issues other than office work. We still are the two in our department. Somehow I cannot delete the feelings for her from my mind and its more difficult as we are the only persons in our department and in constant touch for work But yes, I will never be able to leave my family. Please advise. Thanks and Regards,
Ans: Dear Rupannita,
You can't keep one leg at home and another in another place and expect both to work the way that you want.
You are attached to the family and that's the place you are going to feel happy as well. So, all these feelings for the other person; do evaluate what it's going to do to your peace of mind.
Feelings cannot be deleted as you said BUT whether you want to act on those feelings is a choice that you must make. See where your life moves hanging onto a parallel life!

All the best!
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Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Hello I am a 40 year old unmarried male. I did my graduation in Hotel management and passed out in the year 2006. After that i worked in few hotels in India and intrest of work in operations of hotel fizzled out. I sat idle doing nothing for a year or so and den helped my dad with his business that we had. In 2009 i did my MBA marketing from a Pune university college and passed out in 2011. Due to my hotel mgmt background i started working in five star hotel marketing department after passing out my MBA marketing. I got the hotel marketing job in Nov 2011. I worked in the same hotel till April 2014 after which i got an apportunity to work with big corporate hospital in the corporate marketing department. I worked there till 2018 after which i got a opportunity to work in a bigger corporate hospital in a different city in the marketing department. I worked there till Sept 2022, after which i was forced to take a break from work coz needed to take care of my ailing mother who underwent a Liver transplant. I was forced to take a break of around one year and months and i did nothing but took care of my mothers health. In the meanwhile i also lost my father in Road accident. My mother is fine now and its been one year and four months after the Liver Transplant. I have again started working in the hospital that i use to work before in the same marketing department. No other hospitals were ready to take me in coz the gap tht i had in my career. I have started working since July 2024. Now i feel tht i have already lost a lot of ground in terms of my carrier. I feel tht i am not well paid. All my life i have been bullied a lot hence i have self confidence issues. I feel coz of the nature of my job and less salary that is 9 lakhs per annum i am not getting any proper marriage proposals. I have not able to save anything in my life coz all my life i hav only worked and spent all my money on others. I also feel tht compared to others i lag in knowlege as well. Self confidence is the biggest problem. I want to grow now in my career and improve my personality now. I want you to guide in regards with the career as well and also means to improve my overall life. I want someone to talk to who would help and be guide at this moment of my life. Can someone of you make time and i can talk to them, so tht i could get direction in life. Right now emotionally, mentally and i feel physically also have hit my rock bottom.
Ans: I applaud your treatment and story-sharing bravery. You've surmounted terrible odds, and your progress is admirable. Simplify and construct a career and personal plan. You Grow Career: You have varied hotel and hospital marketing. You may feel behind, but your experience is valuable. The next step? Digital, healthcare, and data analytics credentials improve marketing skills. LinkedIn Learning, Coursera, and Google provide affordable, flexible courses. Return to industry professional networks. Attend hospital marketing events and webinars to network with mentors and employers. Healthcare Marketing is popular. To stand out, focus on patient involvement, brand strategy, or digital efforts. Better Choices: Pharma, health tech, and healthcare marketing occupations pay more. Showcase your suffering and perseverance. Startups and medical device companies value adaptable marketing.
Financial safety: Budgeting: Save on a strict budget. Even a small monthly savings can provide stability. Set aside 3-6 months of living expenditures for emergencies.
Think about low-risk investments like mutual funds or term deposits to grow your savings.

Rebuild your self-confidence step-by-step:
Personal Development: To overcome bullying and regain self-worth, see a psychologist. Grateful: Celebrate small victories daily. Gain long-term self-esteem. To boost energy and confidence, walk, perform yoga, or go to the gym. Stress reduction and resilience can be achieved with Calm and Headspace meditation applications. Online or local career transition support groups can provide social and emotional help. Others' tales inspire.
Marriage proposals: If you are emotionally ready, willing to grow, and honest with your partner, you should be married at 40, even with a low salary. How you grow together is key to many successful partnerships. You need someone who values you for who you are, not simply your salary. Befriend Positive Friends and Coworkers. Instant Actions: Ask local Career Coaches and mentors for unique advice. Update LinkedIn, Resume: Emphasize career accomplishments. Encourage resilience and accountability during your break.
Goals: Set 3-6 month and 1-2 year career and personal improvement goals.
Getting past personal issues demonstrates strength. Returning to work shows resilience. Success is nonlinear and takes persistence. Choose small, daily acts that promote your goals. All the BEST for Your Prosperous Future.
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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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