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Ramalingam Kalirajan |8119 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 13, 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

Asked by Anonymous - May 09, 2024Hindi

I am 27 Years old and work in an IT company. My monthly salary is 1 lakh. I have a LIC where I contribute Rs 20000 each month. I also have 2 Mutual funds SIPs where I contribute Rs 10,000/month combined. For rent and household requirements I spend Rs 25000-30000 each month. I send Rs 15000/month to home. I am unmarried and don't have any other big regular spendings. How can I improve my investments and grow my money?

Ans: It's great to see your proactive approach towards financial planning at such a young age. With a solid foundation already in place, let's explore ways to optimize your investments and maximize your wealth growth.

Review Your Investment Portfolio:

Evaluate the performance of your existing investments, including LIC and Mutual Fund SIPs.
Consider diversifying your portfolio to spread risk and potentially enhance returns. Explore other investment avenues such as stocks, bonds, real estate (if feasible), or alternative investments like P2P lending or gold.
Increase Investment Allocation:

With a monthly salary of Rs 1 lakh and relatively low monthly expenses, you have a significant portion of your income available for investments.
Consider increasing your monthly contributions to your existing SIPs or starting new SIPs in diversified mutual funds to accelerate wealth accumulation.
Emergency Fund:

Ensure you have an emergency fund equivalent to at least 3-6 months of your living expenses. This fund should be readily accessible in case of unforeseen circumstances or emergencies.
Tax Planning:

Explore tax-saving investment options such as Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), or tax-saving fixed deposits to optimize tax efficiency and maximize savings.
Retirement Planning:

Start planning for your retirement early to benefit from the power of compounding. Consider investing in long-term retirement-focused investment vehicles like EPF, PPF, NPS, or diversified equity mutual funds.
Seek Professional Advice:

Consult with a Certified Financial Planner (CFP) who can provide personalized guidance based on your financial goals, risk tolerance, and investment horizon.
A CFP can help you create a comprehensive financial plan, identify investment opportunities, and monitor your portfolio to ensure it remains aligned with your objectives.
By taking a holistic approach to financial planning, continuously learning about investment opportunities, and seeking professional advice when needed, you can enhance your investments and achieve your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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