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Vivek

Vivek Lala  |251 Answers  |Ask -

Tax, MF Expert - Answered on May 19, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Asked by Anonymous - May 16, 2024Hindi
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I am 27 year old not married earning 30 k per month in tuer 2 city. I just strated investing 5k per month in MF and have a loan of about 1.5 lakh. I can save more money where can i invest it for long term. Should i first close my loan or invest ?

Ans: Hello, the decision of loan vs investment depends on the ROI of your loan
If your loan is at 12% or above , please close off the loan first and then start investing
To finish or pay off your loan faster , start saving as much as you can in a liquid / debt fund and pay it off using that savings done
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  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 2024

Asked by Anonymous - Jan 25, 2024Hindi
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Hello Sir I am 22 year old and I can invest around Rs3000 per month with better job opportunity and time period I can increase my investment amount, I want to know where I can invest my savings every month for better returns, I can invest for next 30-35 years regularly for sure. Kindly guide me where and how to invest .
Ans: That's a fantastic start! Thinking about long-term investments at your age is a smart decision. Here are some options for where you can invest your Rs.3000 per month, considering a 30-35 year investment horizon:

Systematic Investment Plan (SIP) in Mutual Funds:

This is a popular option for regular investment with rupee-cost averaging. You invest a fixed amount each month, and the units are purchased based on the prevailing Net Asset Value (NAV).
Benefits:
Disciplined Investing: Encourages regular savings and avoids the need to time the market.
Rupee-Cost Averaging: Purchases more units when the NAV is low and fewer units when it's high, potentially balancing the overall cost per unit.
Long-Term Growth: Equity mutual funds have the potential for significant growth over the long term (typically 10+ years).
Investment Options:
Large-cap Funds: Invest in stocks of well-established companies with a proven track record.
Multi-cap Funds: Invest across companies of different market capitalizations (large, mid, and small).
Consider a mix of these based on your risk tolerance.
Here's how to get started with SIP in Mutual Funds:

Choose a SEBI-registered Mutual Fund Company (AMC): Research and compare different AMCs based on their performance and fund offerings.
Select a Suitable Mutual Fund Scheme: Consider your risk tolerance and investment goals.
Open an Investment Account: You can open an account with the AMC directly or through a broker/distributor.
Start your SIP: Set up a recurring transfer of Rs.3000 per month to your chosen SIP.
Additional Tips:

Increase Investment as Income Grows: As your income increases, consider raising your SIP amount to reach your financial goals faster.
Stay Invested for Long Term: Market fluctuations are normal. Don't panic and redeem your investments during downturns. A long-term horizon allows time for the market to recover and potentially generate good returns.
Review and Rebalance: Periodically review your portfolio performance (at least annually) and rebalance if needed to maintain your desired asset allocation.
Other Options to Consider:

Public Provident Fund (PPF): A government-backed scheme offering guaranteed returns and tax benefits. However, PPF has lower liquidity compared to mutual funds.
Employee Provident Fund (EPF): If you're salaried, your employer likely contributes to your EPF. This offers good long-term returns and tax benefits.
Remember:

I can't provide specific financial advice. Consulting a Certified Financial Planner (CFP) can be helpful, especially for a personalized investment plan considering your risk tolerance and goals.
Start with your research! Read about different investment options, mutual funds, and SIPs before making any decisions.
By starting early, investing regularly, and staying disciplined, you can build a significant corpus for your future over the next 30-35 years.

..Read more

Ramalingam

Ramalingam Kalirajan  |4625 Answers  |Ask -

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

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I m 40 yrs now, earning 1.5 lacs a month in hand, monthly investment are-- 12500 ppf, Quant midcap 15k, HDFC midcap 10k, pgim midcap 5k, quant smallcap 5k, Nippon smallcap 5k, parag parekh flexicap 5k, pgim flexicap 5k, quant active 5k,Nippon multicap 5k, HDFC multicap 5k Nps, apy 7k. Total monthly inv around 84k Hv given 30 lacs unsecured loan to friend from where earning 60k per month want to invest this money monthly, where to invest?
Ans: It's commendable that you're making significant investments towards securing your financial future. Given your current financial situation and the surplus income from the unsecured loan, here are some suggestions on how you can invest the additional 60,000 rupees per month:

Emergency Fund: Before considering additional investments, ensure you have an adequate emergency fund set aside to cover unexpected expenses or financial setbacks. Aim to have 3-6 months' worth of living expenses saved in a liquid and easily accessible account.
Debt Repayment: Given that you've provided an unsecured loan to a friend, consider prioritizing the repayment of this debt. Focus on reducing or eliminating high-interest loans to free up cash flow and reduce financial stress.
Diversified Investments: Allocate a portion of the surplus income towards building a diversified investment portfolio. Consider investing in a mix of equity mutual funds, debt instruments, and other investment avenues based on your risk tolerance and investment goals.
Equity Mutual Funds: Since you already have significant exposure to mid-cap and small-cap funds, consider diversifying further by investing in large-cap or multi-cap funds. These funds offer exposure to different segments of the market and can help mitigate risk.
Debt Instruments: Given the volatility of the stock market, consider allocating a portion of your surplus income towards debt instruments such as fixed deposits, bonds, or debt mutual funds. These investments offer stability and steady returns over time.
Real Estate: If you have a long-term horizon and are willing to take on the associated risks, consider exploring opportunities in real estate investment. However, ensure you conduct thorough research and due diligence before making any real estate investments.
Seek Professional Advice: Given the complexity of financial planning and investment management, consider consulting with a certified financial planner or investment advisor. They can provide personalized guidance tailored to your specific financial situation, goals, and risk tolerance.
By diversifying your investments, prioritizing debt repayment, and seeking professional advice, you can make informed decisions to secure your financial future and achieve your long-term financial goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

Asked by Anonymous - May 30, 2024Hindi
Money
Hi I am 31. Me and my partner earn 75k monthly. Rent and other expenses come around 25k (which we can't cut down) Currently we are doing MF 10k (current holding 1,65,000) , a chit 10k, NPS 4.5k, LIC 2k. Have savings of 4lakhs and 16k in stocks. Other 25k I am using to repay my loans which will be cleared by September. Where can I invest 25k monthly from October. Kindly suggest the better option I am ready to take risk
Ans: Evaluating Your Current Financial Situation and Investment Opportunities

You and your partner earn Rs 75,000 monthly, with expenses around Rs 25,000. This leaves a surplus for investments. Your current investments include mutual funds, a chit fund, NPS, LIC, and some savings in stocks. Additionally, you will clear your loans by September, freeing up Rs 25,000 monthly for new investments.

Current Investments
Mutual Funds: You invest Rs 10,000 monthly, with a current holding of Rs 1,65,000.

Chit Fund: You invest Rs 10,000 monthly.

National Pension System (NPS): Your contribution is Rs 4,500 monthly.

Life Insurance (LIC): You contribute Rs 2,000 monthly.

Savings and Stocks: You have Rs 4 lakhs in savings and Rs 16,000 in stocks.

Loan Repayment
You allocate Rs 25,000 monthly for loan repayment, which will be cleared by September. Post-September, you will have this amount available for new investments.

Investment Goals and Risk Appetite
With your loans cleared and a willingness to take risks, you can focus on growth-oriented investments. Let's explore suitable options for investing Rs 25,000 monthly from October.

Diversified Mutual Fund Portfolio
Mutual funds are a great way to diversify your investments. Continue your current SIPs and consider increasing your monthly investment. Here's how to diversify further:

Large-Cap Funds
Large-cap funds invest in well-established companies. These funds provide stability and steady growth. They are less risky compared to mid-cap and small-cap funds.

Mid-Cap and Small-Cap Funds
Mid-cap and small-cap funds invest in medium-sized and smaller companies, respectively. They offer higher growth potential but come with increased risk. Allocating a portion of your investments here can boost your returns.

Flexi-Cap Funds
Flexi-cap funds invest across market capitalizations. They offer flexibility and diversification, balancing risk and returns.

International Funds
Investing in international funds diversifies your portfolio globally. This reduces country-specific risks and provides exposure to global growth opportunities.

Actively Managed Funds
Actively managed funds can outperform index funds. These funds benefit from professional management and the ability to adapt to market changes. They aim for higher returns through strategic investments.

Stocks and Equity Investments
Direct equity investments offer high returns but come with high risks. With your risk tolerance, consider the following strategies:

Blue-Chip Stocks
Invest in blue-chip stocks of well-established companies. They provide steady growth and dividend income.

Growth Stocks
Growth stocks belong to companies with high growth potential. They offer significant returns but are riskier.

Regular Monitoring and Rebalancing
Regularly review and rebalance your stock portfolio. This ensures alignment with your investment goals and risk tolerance.

Systematic Investment Plans (SIPs)
SIPs are a disciplined way to invest regularly. Increase your SIP contributions from October. This leverages the power of compounding and enhances your investment corpus over time.

National Pension System (NPS)
Continue your NPS contributions for retirement planning. NPS provides tax benefits and long-term growth through equity and debt investments.

Emergency Fund
Maintain an emergency fund covering 6-12 months of expenses. This ensures financial stability during unforeseen circumstances. Keep a portion of your savings liquid for this purpose.

Health and Life Insurance
Ensure adequate health and life insurance coverage. This protects you and your family from financial burdens due to medical emergencies or unforeseen events.

Tax Efficiency
Optimise your investments for tax efficiency. Utilise tax-saving instruments and strategies to reduce your tax liability, thereby increasing your net returns.

Professional Guidance
Consult a Certified Financial Planner for personalised advice. They provide tailored strategies to help you achieve your financial goals. Their expertise can guide you in navigating complex financial decisions.

Regular Reviews and Adjustments
Regularly review your financial plan. Market conditions, personal circumstances, and financial goals change over time. Adjust your investment strategy as needed to stay on track.

Conclusion
Your disciplined investment approach and willingness to take risks are commendable. With strategic adjustments and continued contributions, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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