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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on May 04, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Palak Question by Palak on May 03, 2023Hindi
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I am 22 year old girl and want to start investing in mutual funds. Is it advisable to start with a high NAV AMC.

Ans: Congrats for taking this step at this age. If you remain consistent, invest with a minimum 5 years’ horizon and do not get swayed by market fluctuations, you will create wealth the way you may not be able to think of right now.

Start with monthly SIP initially and if fine with you, make a 100% equity portfolio. I would recommend the allocation of following categories of funds for SIP for you, one fund per category (total 4 funds):-
1. Index Fund – 40%
2. Flexicap Fund – 20%
3. Large & Midcap Fund – 20%
4. Asset Allocator Fund – 20%

How to choose the fund? Go to any website like moneycontrol.com or valuresearchonline.com and simply choose a 5-Star fund, necessarily the best fund of the above categories. Then choose a direct investing platform and go ahead with investing.

High NAV is immaterial in mutual fund investing. It is no criteria to choose a MF.
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  |7014 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

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sir I am a new to investment. Can you advise me about Mutual funds how to start with low risks
Ans: To start with mutual funds with low risk, consider investing in debt funds or hybrid funds. Debt funds primarily invest in fixed-income securities like government bonds and corporate bonds, offering stability and lower risk compared to equity funds. Hybrid funds invest in a mix of equity and debt instruments, providing a balance between growth potential and risk.

Here are some steps to begin investing in mutual funds with low risk:

Determine your investment goals and risk tolerance: Understand your financial objectives, whether it's saving for retirement, education, or wealth accumulation, and assess how much risk you're comfortable with.

Research different types of mutual funds: Learn about debt funds, such as liquid funds, ultra-short duration funds, and income funds, as well as hybrid funds like balanced funds or conservative hybrid funds.

Choose a reputable fund house: Look for mutual fund companies with a solid track record, good fund management, and transparency in their operations.

Select suitable funds: Based on your risk tolerance and investment goals, choose mutual funds that align with your objectives. Read the fund's investment objective, strategy, past performance, and expense ratio before investing.

Start with SIPs: Consider investing through Systematic Investment Plans (SIPs), which allow you to invest a fixed amount regularly. SIPs help in rupee-cost averaging and reduce the impact of market volatility.

Monitor your investments: Keep track of your mutual fund investments regularly, review performance, and make adjustments if necessary. Stay informed about economic and market trends that may affect your investments.

Seek professional advice: If you're unsure about which funds to choose or how to allocate your investments, consider consulting a financial advisor who can provide personalized guidance based on your financial situation and goals.

Remember, while investing in mutual funds with low risk can provide stability to your portfolio, it's essential to diversify your investments and stay invested for the long term to achieve your financial objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |7014 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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I am 38 years planning to invest mutual funds 50k monthly, advice?
Ans: Planning Your Mutual Fund Investment
Congratulations on deciding to invest Rs. 50,000 monthly in mutual funds! This disciplined approach will help you achieve your financial goals. Here’s a structured plan to maximise your returns and ensure financial security.

Understanding Your Financial Goals
First, let's identify your financial goals. Do you want to build a retirement corpus, fund your children's education, or purchase a home? Clarifying these goals will guide your investment strategy. At 38, you have time to grow your investments but must balance risk and return.

Diversifying Your Investments
Equity Mutual Funds
Equity mutual funds are ideal for long-term goals. They offer higher returns by investing in stocks. Consider diversifying across:

Large-Cap Funds: Invest in well-established companies for stability.
Mid-Cap Funds: Target growing companies for potentially higher returns.
Small-Cap Funds: Invest in emerging companies for aggressive growth.
Debt Mutual Funds
Debt funds are safer and provide steady returns. They invest in bonds and other debt instruments.

Short-Term Debt Funds: Suitable for goals within 3 years.
Long-Term Debt Funds: Suitable for goals beyond 3 years.
Hybrid Funds
Hybrid funds combine equity and debt investments. They balance risk and return, making them suitable for moderate risk tolerance.

Aggressive Hybrid Funds: Higher equity exposure for growth.
Conservative Hybrid Funds: Higher debt exposure for stability.
Systematic Investment Plan (SIP)
Investing Rs. 50,000 monthly through SIPs is a wise choice. SIPs offer several advantages:

Rupee Cost Averaging: Buying units at different prices averages out market volatility.
Disciplined Investment: Regular investments ensure financial discipline.
Power of Compounding: Long-term investments compound, significantly growing your wealth.
Choosing the Right Funds
Actively Managed Funds
Actively managed funds have professional fund managers who aim to outperform the market. They adjust the portfolio based on market conditions. This active approach can yield higher returns, especially in volatile markets.

Regular Plans vs. Direct Plans
Consider investing in regular plans through a Certified Financial Planner (CFP). A CFP provides:

Professional Advice: Tailored investment strategies.
Portfolio Management: Regular reviews and adjustments.
Risk Management: Balancing risk according to your profile.
Monitoring and Adjusting Your Portfolio
Regularly review your portfolio with your CFP. Adjust your investments based on:

Performance: Shift funds from underperforming to outperforming schemes.
Goals: Update your investment strategy as your goals evolve.
Market Conditions: Rebalance to align with changing market dynamics.
Risk Management
Diversification
Diversifying across various funds and asset classes reduces risk. It ensures that poor performance in one area doesn’t significantly impact your overall portfolio.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of expenses. It ensures liquidity for unforeseen circumstances, preventing the need to liquidate your investments.

Tax Efficiency
Mutual funds offer tax advantages:

Equity Funds: Long-term capital gains (held over one year) are taxed at 10% beyond Rs. 1 lakh per annum.
Debt hybrid Funds: Long-term capital gains (held over three years) are taxed at 20% with indexation benefits.
Avoiding Common Pitfalls
Over-Reliance on High-Risk Investments
Balance high-risk, high-reward investments with stable options to protect your capital.

Ignoring Inflation
Ensure your investments outpace inflation. Equity funds, despite short-term volatility, usually beat inflation over the long term.

Not Having a Clear Plan
Stick to a well-structured plan. Regular reviews and adjustments help stay aligned with your financial goals.

Conclusion
By investing Rs. 50,000 monthly in a diversified mix of mutual funds, you can achieve significant financial growth. A disciplined approach through SIPs, guided by a Certified Financial Planner, will ensure you meet your financial goals. Regular monitoring and adjustments will keep your portfolio on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7014 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 06, 2024

Asked by Anonymous - Jun 02, 2024Hindi
Money
Hi, I'm at 25 years of age and currently earning 4lpa + upto 30K rent benifits and a mediacal insurance that covers myself only from my organization. I want to start investing in mutual funds. I'm able to save around 12-15K per month on avg. and considering moderate to high risk for investment portfolio. Please share some advise on this.
Ans: Investing in mutual funds is a smart choice for building wealth over time. Given your savings capacity of Rs. 12,000 to Rs. 15,000 per month and a willingness to take moderate to high risks, you are on the right path. I understand your financial goals and will provide detailed advice on how to proceed.

Understanding Your Financial Goals
Firstly, let's understand your financial goals clearly. These could include:

Building a retirement corpus
Saving for a down payment on a house
Funding children's education (if applicable in future)
Building an emergency fund
Identifying and prioritizing these goals will help you decide on the investment tenure and risk tolerance. Your willingness to take moderate to high risks suggests you have a long-term investment horizon.

Assessing Your Risk Appetite
Your risk appetite is crucial for selecting the right mutual funds. Moderate to high-risk investments can offer higher returns but also come with increased volatility. At 25 years of age, you have the advantage of time, allowing you to recover from potential short-term market fluctuations.

Diversification of Portfolio
Diversification is essential to mitigate risks. Here’s a breakdown of how you might allocate your investments across different types of mutual funds:

1. Equity Mutual Funds: These funds invest in stocks and are ideal for long-term goals. Given your risk tolerance, you could allocate 60-70% of your savings to equity mutual funds. They have the potential to offer higher returns compared to other types of funds.

2. Debt Mutual Funds: These funds invest in fixed-income securities and are less volatile than equity funds. Allocating 20-30% to debt funds will balance your portfolio and provide stability during market downturns.

3. Hybrid Funds: These funds invest in a mix of equity and debt. They are suitable for investors who want exposure to both asset classes with lower volatility than pure equity funds. You could allocate around 10-15% of your portfolio to hybrid funds.

Systematic Investment Plan (SIP)
A SIP allows you to invest a fixed amount regularly, usually monthly, into a mutual fund. This is an excellent strategy for salaried individuals like you. Here are some benefits of SIP:

Rupee Cost Averaging: By investing a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high, averaging out the cost.

Disciplined Investing: SIP encourages regular saving and investing, which is crucial for building wealth over time.

Compounding: The power of compounding works best when you invest regularly and stay invested for the long term.

Selecting the Right Mutual Funds
When selecting mutual funds, consider the following factors:

1. Fund Performance: Look at the historical performance of the fund. Compare the returns with the benchmark and peer funds over 3, 5, and 10 years. While past performance doesn't guarantee future results, it provides insights into the fund manager’s effectiveness.

2. Fund Manager’s Track Record: A consistent and experienced fund manager can make a significant difference. Check the fund manager's track record and their tenure with the fund.

3. Expense Ratio: This is the annual fee charged by the fund. Lower expense ratios mean higher net returns for you.

4. Fund’s Portfolio: Analyze the fund’s portfolio to understand its holdings. A well-diversified portfolio reduces risks.

5. Asset Management Company (AMC) Reputation: Opt for funds from reputed AMCs with a strong track record of managing funds efficiently.

Actively Managed Funds vs. Index Funds
While index funds mimic the market index and have lower expense ratios, they might not always offer the best returns. Actively managed funds, where fund managers make decisions based on research and market conditions, can outperform the market, especially in volatile conditions. They offer:

Potential for Higher Returns: Skilled fund managers can identify and capitalize on market opportunities.
Flexibility: Fund managers can adjust the portfolio based on market changes.
Research and Analysis: Actively managed funds benefit from extensive research and market analysis, providing a strategic edge.
Direct Funds vs. Regular Funds
Direct funds have a lower expense ratio as they don’t involve intermediaries. However, investing through a Certified Financial Planner (CFP) can be beneficial. A CFP offers:

Expert Advice: CFPs provide tailored advice based on your financial goals and risk appetite.
Portfolio Management: They help manage and rebalance your portfolio to align with market conditions and goals.
Convenience: CFPs handle the administrative aspects, saving you time and effort.
Building an Emergency Fund
Before you start investing, ensure you have an emergency fund. This should cover 6-12 months of your living expenses. An emergency fund acts as a financial cushion during unforeseen circumstances like job loss or medical emergencies. You can park this money in a liquid fund or a savings account.

Tax Efficiency
Mutual funds offer tax benefits under Section 80C of the Income Tax Act through Equity Linked Savings Schemes (ELSS). ELSS funds have a lock-in period of three years and provide tax deductions up to Rs. 1.5 lakh. They also offer the dual benefit of tax saving and wealth creation.

Monitoring and Rebalancing Your Portfolio
Regularly monitoring your portfolio is crucial. Market conditions and your financial goals might change over time. Rebalancing ensures your portfolio remains aligned with your risk tolerance and investment objectives.

Long-Term Commitment
Mutual funds are ideal for long-term wealth creation. Stay committed to your investments despite market fluctuations. Market volatility is normal, and staying invested for the long term allows you to benefit from market upswings.

Conclusion
Investing in mutual funds is a wise decision given your savings capacity and risk appetite. By diversifying your portfolio, starting a SIP, and regularly monitoring your investments, you can achieve your financial goals. Remember to consult a Certified Financial Planner to tailor your investment strategy to your specific needs.

Investing is a journey, and with disciplined and informed decisions, you can build substantial wealth over time. You're on the right track, and with the right strategies, you will achieve your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ravi

Ravi Mittal  |414 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 13, 2024

Asked by Anonymous - Nov 04, 2024
Relationship
my gf was physical(intercourse) just for once with her ex and her ex cheated on her she just had a 2 month relationship with her ex. and after that around just after a month we came in relationship and its been 2 months we are in a relationship we both go to same college but due to house problem she doesn't attend classes basically we are in a long distance relationship and she still remember him and when she goes to places where she meet her ex she still have flashback She is not fully with me even when i just ask her for a normal kiss she refuses and tells me what so hurry but when i asked her does she want to stay with me she told me yes i want to stay with you and she is ready to marry me as well when time comes she even told me that timely she will have feelings for me And for me all this is new this is my first relationship what should i do?
Ans: Dear Anonymous,
Refusing for a kiss isn't as concerning as her saying she will have feelings for you. Not everyone is ready for intimacy at the same time in all their relationships. As I mentioned earlier, there can be several reasons for this behavior. Please have an open conversation with her. Let her know that her behavior is bothering you and you want some clarity. If she still continues to say the same thing, you have the option to rethink the relationship.

I understand that you are feeling disturbed; it's not easy being on the receiving end. Please feel free to pick yourself first. You deserve someone who loves you completely.

Best Wishes.

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Ravi

Ravi Mittal  |414 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 13, 2024

Asked by Anonymous - Nov 07, 2024Hindi
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Relationship
I am 28, will be engaged in 3-4 months. It's an arranged marriage. I have met the girl one time, that too she was accompanied with her parents as her family is very conservative. We spoke privately for about half an hour. I know it's still not enough but I was able to have a good conversation. She was nervous at first but I made her feel comfortable and it was then time well spent. She is a sweet girl, even my maa papa like this girl but on the other hand, I am also getting worried as the days are coming near. Sometimes I feel like postponing the event. Is this normal? I also fear of things that happens in nowadays like getting divorce, extra marital affairs, alimony etc. What if she finds a better partner after marriage? Will she leave me? Due to this I cannot have proper sleep recently. Any suggestions to calm my nerves?
Ans: Dear Anonymous,
Many people get cold feet before getting married. It is very normal. All your questions are valid but you need to understand that in every relationship, it all comes down to trust. Whether you marry this woman or someone else, you have to trust her. And no one can really tell what the future holds. So we focus on the present and hope for the best.

I suggest speaking to your would-be partner a little more in the meantime. Getting to know her will put these doubts to rest. I'm sure she is equally concerned about what kind of person you are. Moreover, it is always a good idea to get to know each other better before committing for a lifetime. And, in case, you still think you need to postpone the event, do not shy away from doing so. It is better to take some time and make the right decision than to make a wrong decision in a hurry.

Hope this helps.
Best Wishes.

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Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |123 Answers  |Ask -

Physiotherapist - Answered on Nov 13, 2024

Asked by Anonymous - Sep 15, 2024Hindi
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Health
Hi sir , Iam male 27 years planning to reduce my current weight of 86KG hence planning to hit the gym. Iam concerned of abdominal fat. I left gym 3 yrs back when my weight was average 69kgs. However due to no physical activity weight increased. Now iam planning for reducing weight and also improve my strength with good muscular lean body not bulk. Please guide me sir thanks
Ans: It’s wonderful that you’re enthusiastic about getting back into the gym to work towards weight loss and a lean, toned physique! As a physiotherapist, I suggest scheduling regular check-ins with a physiotherapist to monitor your progress and make any necessary adjustments to your exercise routine. To effectively lose fat, particularly around the abdomen, while building muscle, try a balanced approach that incorporates both cardio and strength training. Start with 20-30 minutes of moderate-intensity cardio—like brisk walking, cycling, or jogging—three to five times per week to increase calorie burn. For strength training, focus on compound exercises such as squats, lunges, push-ups, and rows, with three sessions per week. Begin with lighter weights, increasing gradually as your strength builds, and focus on good form to develop lean muscle without bulk.

Including core exercises, like planks, Russian twists, and leg raises, will help to strengthen and tone your abdominal muscles; however, remember that fat loss from specific areas requires overall body fat reduction. A high-protein, balanced diet will be crucial for supporting muscle growth and managing hunger, so aim to reduce processed foods and sugars. Consistency is essential—maintain a regular exercise schedule, and ensure you have rest days for recovery. With dedication, you’ll see steady improvements over time. Best of luck, and don’t hesitate to reach out if you need further guidance!

...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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