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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 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
Vishal Question by Vishal on Apr 14, 2024Hindi
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I am a 34 year old and wants to start investing in Sip a sum of 5000/- per month and I can increase the amount by 1000/- every year. Can u suggest me a funds to invest with an expectation to achieve at least 1 CR after 20 years... I don't want to take big risk ..but a moderate risk can be ok....

Ans: Starting a SIP with a moderate risk tolerance and a goal of reaching 1 crore after 20 years is a prudent approach to long-term wealth accumulation. Here's a suggested investment strategy:

Diversified Equity Mutual Funds: Begin by investing in diversified equity mutual funds that have a track record of consistent performance and a well-diversified portfolio. These funds typically invest in a mix of large-cap, mid-cap, and small-cap stocks, spreading the risk across different segments of the market.
Increasing SIP Amount: Since you're planning to increase your SIP amount by 1000 rupees every year, you can gradually increase your exposure to equities over time. This strategy, known as rupee-cost averaging, allows you to benefit from market volatility by buying more units when prices are low and fewer units when prices are high.
Long-Term Horizon: With a 20-year investment horizon, you have the advantage of compounding working in your favor. By staying invested for the long term and reinvesting dividends, you can harness the power of compounding to accelerate wealth accumulation.
Asset Allocation: Consider maintaining a balanced asset allocation between equity and debt instruments to manage risk effectively. While equities offer higher growth potential, debt instruments provide stability and capital preservation during market downturns.
Regular Review: Periodically review your investment portfolio and make adjustments as needed based on changes in your financial situation, market conditions, and investment goals. Rebalance your portfolio periodically to ensure it remains aligned with your risk tolerance and investment objectives.
Based on your requirements, you can consider investing in a combination of large-cap, multi-cap, or balanced funds with a proven track record of delivering consistent returns over the long term. It's essential to conduct thorough research or consult with a certified financial planner before making any investment decisions to ensure they align with your financial goals and risk tolerance.
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  |6995 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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Hi I’m 23 years old and I want to invest 5k per month in Sip for at least 20 years. Can you please suggest some sip's?
Ans: Kickstarting Your Investment Journey at 23: A Smart Move!
Investing ?5,000 per month through SIPs for 20 years is a fantastic decision at your young age! Here are some ideas for potential SIP investments, but remember, this is not financial advice:

Building a Diversified Portfolio:

Equity Funds: Consider investing a portion in equity funds that offer growth potential over the long term. Actively managed equity 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. You can explore Large-cap, Mid-cap, or Flexi-cap funds based on your risk tolerance.

Debt Funds: Invest a portion in debt funds for stability and to balance your portfolio's risk profile. Debt funds can provide regular income and help manage volatility.

Here's a Sample SIP Allocation (you can adjust based on risk tolerance):

60%: Large-cap or Multi-cap Actively Managed Equity Funds for long-term growth.

20%: Mid-cap Actively Managed Equity Funds for potentially higher growth (with higher risk).

20%: Debt Funds (short/medium/long-term) for stability and income generation.

Important to Remember:

Do Your Research: Research actively managed funds and choose those with a good track record and a reputable fund house.

Review Regularly: Review your SIPs at least annually to ensure they remain aligned with your goals and risk tolerance.

Seeking Professional Guidance:

Personalized Plan: A Certified Financial Planner (CFP) can create a personalized SIP plan considering your risk tolerance, investment goals, and future needs. They can suggest specific actively managed funds based on your risk profile.
By starting early, staying invested for the long term, and potentially consulting a CFP, you can be on track to achieving your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

Asked by Anonymous - May 08, 2024Hindi
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I am 35 years old and serve govt Job. Could you please suggest my SIP investment to start up with goal of fund accumulation after 20 years.Thanks in advance.
Ans: That's fantastic that you're thinking about your child's education so early! Starting early allows you to leverage the power of compounding to grow your savings. Let's explore some smart ways to save for your child's future.

Factors to Consider

Education Costs: Research future education costs, considering inflation.
Investment Timeframe: You have a good 8-year window, which is great for investment growth.
Investment Options for Growth

Here are some options to consider for your child's education fund:

Equity Mutual Funds: Invest in a diversified mix of equity funds for potentially higher returns over the long term.

SIP (Systematic Investment Plan): Set up a monthly SIP to invest regularly and benefit from rupee-cost averaging.

Actively Managed Expertise

Actively managed funds have experienced fund managers who make investment decisions to try and outperform the market. This approach can be beneficial compared to passively managed funds, which simply mirror an index.

Benefits of a CFP

A Certified Financial Planner (CFP) professional can create a personalized plan for your child's education. They can help you:

Choose the Right Funds: Select a mix of funds that balances growth potential with risk tolerance.
Review & Rebalance: Regularly assess your portfolio and make adjustments as needed.
Goal-Based Planning: Ensure your investments are aligned with your child's education timeline.
Regular Plan vs Direct Plan

Regular plans with a CFP professional can offer some advantages over direct plans. A CFP can:

Save on Costs: Help you potentially minimize investment expenses.
Stay on Track: Guide you through market ups and downs to keep you invested for the long term.
Remember:

Investing for a child's education requires a long-term perspective. A CFP can create a strategy that considers your goals, risk tolerance, and investment timeframe.

Secure your child's future! Schedule a consultation with a CFP to discuss your specific situation and build a roadmap to fund your child's education.

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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