Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 22, 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 - Apr 20, 2024Hindi
Listen
Money

Sir I am 35 year old earning like 90 k per month invested 1 lakh in mutual fund Aditya Birla Sun Life psu equity fund and quant small cap fund direct . N 5 k sio for icic prudential infrastructure direct growth. .I wanna invest like 2o or 30 k but not sip once a time suggest some pls thanks in advance

Ans: I can help guide your lump sum investment choices based on your existing portfolio:

Current Portfolio:

Aditya Birla Sun Life PSU Equity Fund: This seems like a large or mid-cap public sector undertaking (PSU) focused fund.
Quant Small Cap Fund Direct: This suggests you have some exposure to smaller companies with higher growth potential but also higher risk.
ICICI Prudential Infrastructure Fund Direct Growth: This likely provides exposure to the infrastructure sector.
Considering Lump Sum Investment:

Align with Investment Goals: Do you have a specific goal in mind for this lump sum (short-term, long-term)?
Diversification: You already have some sectoral exposure. A lump sum investment could add further diversification or strengthen existing themes.
Options for Lump Sum:

Balance Equity Exposure: If comfortable with your current equity allocation, a balanced mutual fund could add debt for stability.
Focus on Specific Sector: If you believe a particular sector (technology, healthcare) has potential, consider a sectoral fund.
Large-Cap Fund: A large-cap fund could offer stability and diversification within equities.
Remember:

Research Before Investing: Regardless of the option you choose, research the fund thoroughly before investing.
Consider Risk Tolerance: Don't chase high returns without considering your risk tolerance.
Talk to a Financial Advisor:

A financial advisor can assess your risk profile and overall portfolio to suggest the most suitable lump sum investment option for your goals.
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

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

Listen
Money
Dear Sir, I am 40 years old and i want to invest Rs.10,000/- per month through SIP in Mutual Funds for the period of 10 Years. Currently No investments in Stocks & Mutual Funds, Please suggest in which funds i have to invest.
Ans: Investing Rs. 10,000 per month through SIPs in mutual funds over a 10-year period is a prudent step towards building wealth. Here's a diversified portfolio suggestion to consider:

Large Cap Funds: Allocate a portion of your investment to large-cap funds for stability and steady growth. These funds invest in well-established companies with a track record of performance and stability.
Mid Cap Funds: Diversify your portfolio by investing in mid-cap funds, which focus on companies with moderate market capitalization. These funds have the potential for higher growth compared to large caps but come with slightly higher risk.
Multi Cap Funds: Invest in multi-cap funds to gain exposure across companies of various sizes, providing diversification and flexibility. These funds have the flexibility to invest in large, mid, and small-cap stocks based on market conditions.
Balanced Advantage Funds: Consider allocating a portion of your investment to balanced advantage funds, which dynamically manage their equity exposure based on market valuations. These funds aim to provide stable returns across market cycles.
Index Funds: Include index funds in your portfolio for low-cost exposure to broad market indices like Nifty or Sensex. These funds replicate the performance of the underlying index and offer diversification at a lower expense ratio.
International Funds: Explore international funds to diversify your portfolio geographically. These funds invest in companies listed outside India, providing exposure to global markets and currencies.
Remember to conduct thorough research or consult with a Certified Financial Planner before investing. They can help tailor a portfolio based on your risk tolerance, investment goals, and time horizon. Additionally, regularly review your portfolio's performance and make adjustments if needed to stay on track towards your financial objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Listen
Money
Hi Experts, I am 35 years old and having SIPs in below mutual funds ICICI prudential Long Term equity fund (Tax Saving) Direct Plan Growth - SIP - Rs 3500 Axis Long term Equity Direct plan Growth (tax Saving)- SIP - Rs 3500 SBI Small Cap - SIP - Rs 3000 Mirae Asset Tax Saver Fund Direct growth - SIP - Rs 3500 Parag Parekh Flexi Cap Fund Direct Growth - SIP - Rs 7000 Axis Mid Cap Direct Plan Growth - SIP - Rs 5000 Nippon India multicap fund -SIP- Rs 10000 My total SIP is around Rs 36000 across all. I would like to invest Rs 15000 more on SIP. I know my small cap allocation is low because some one has scared me of small cap because of volatility. Can you suggest where can I invest extra Rs 15000 per month SIP. I have recently top up my mutual fund SIPs. I am looking for long time investment.
Ans: It's commendable that you're regularly investing through SIPs and looking to further diversify your portfolio. Here's a suggestion for investing an additional Rs 15,000 per month:

Since you're concerned about volatility in small-cap funds, consider allocating a portion of the additional Rs 15,000 to large-cap or multi-cap funds for stability and downside protection.
Look for funds with a proven track record of consistent performance and experienced fund managers. Consider factors like expense ratio, fund size, and portfolio composition when evaluating options.
Given your long-term investment horizon, you can afford to take some risk for potentially higher returns. Hence, consider allocating a portion of the additional SIP amount to mid-cap or small-cap funds for growth opportunities.
Remember to maintain a balanced portfolio across different market segments and asset classes to manage risk effectively.
Regularly review your SIP investments and make adjustments as needed based on changes in your financial situation or market conditions.
Consult with a Certified Financial Planner to receive personalized advice tailored to your specific needs and goals.
By diversifying your SIP investments across different market segments and staying disciplined with your investment strategy, you can maximize the potential for long-term wealth creation while managing risk effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Asked by Anonymous - Apr 16, 2024Hindi
Listen
Money
Iam 34 years old. I have invested by SIP in HDFC large and midcap fund, HDFC Nifty 50 index fund and Sundaram flexi cap fund each Rs. 2500. I can invest another 7500 monthly.Can you suggest how to go about it.
Ans: It's excellent that you're proactively investing through SIPs, which is a prudent approach to building wealth over time. Let's explore how you can further allocate your additional investment of Rs. 7500 per month:
1. Diversification: Since you already have exposure to large and mid-cap stocks through HDFC Large and Midcap Fund, and to the Nifty 50 index through HDFC Nifty 50 Index Fund, you may consider diversifying into other market segments or asset classes to spread risk.
2. Consider Small-cap or Sectoral Funds: To enhance diversification, you could allocate a portion of your additional investment to a small-cap fund or a sectoral fund. Small-cap funds have the potential for high growth but come with higher risk, so ensure it aligns with your risk tolerance. Sectoral funds invest in specific sectors like technology, healthcare, or banking, offering focused exposure to particular segments of the market.
3. International Exposure: Another option is to consider investing in an international fund to diversify geographically. International funds provide exposure to global markets, offering opportunities for growth and diversification beyond domestic equities. This can help reduce portfolio risk through exposure to different economies and currencies.
4. Debt Funds for Stability: Depending on your risk profile and investment goals, you might also consider allocating a portion of your additional investment to debt funds for stability. Debt funds invest in fixed-income securities like bonds and offer lower volatility compared to equity funds. They can serve as a cushion during market downturns while providing steady income.
5. Review and Rebalance: Regularly review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Rebalance your portfolio if necessary by adjusting your asset allocation based on changing market conditions or personal circumstances.
By diversifying your portfolio across different asset classes and market segments, you can mitigate risk while potentially enhancing returns over the long term. Consider consulting with a Certified Financial Planner to tailor an investment strategy that aligns with your specific financial objectives and risk profile.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Latest Questions
Ravi

Ravi Mittal  |403 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 08, 2024

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 08, 2024

Asked by Anonymous - Nov 08, 2024Hindi
Money
Iam under debt of Rs 10lac and my salary is 23k per month. How to come out from debt and i need to get debt free. So, please guide me.
Ans: Being in debt can be overwhelming, especially on a limited monthly income. But with disciplined planning and commitment, you can gradually achieve financial freedom. Here’s a detailed guide to help you pay off your Rs 10 lakh debt and build a stable financial foundation.

Step 1: Calculate Your Monthly Expenses and Set a Budget
Start by understanding your cash flow. Track every expense to get a clear picture of your spending.

Essential Expenses: These include rent, food, utilities, and any other basic needs.

Discretionary Expenses: Cut back on non-essentials like dining out, entertainment, and shopping.

Savings and Debt Repayment: Dedicate any amount left after essential expenses towards debt repayment.

Tip: Keep a written budget or use a mobile app to monitor your expenses. Reducing discretionary spending will help increase the amount available for debt repayment.

Step 2: Increase Income if Possible
Boosting income, even slightly, can significantly accelerate debt repayment. Here are some ideas:

Freelance or Part-Time Work: If possible, look for freelance work in areas you’re skilled in, like writing, tutoring, graphic design, or programming.

Overtime or Extra Shifts: If your employer offers overtime, consider taking it on to increase your income.

Sell Unwanted Items: Sell items you no longer need, such as electronics, clothes, or furniture, to generate additional cash.

Increasing your income, even temporarily, can help you pay off your debt faster.

Step 3: Create a Debt Repayment Plan
List all your debts, including outstanding amounts, interest rates, and due dates. Here are two strategies for paying them off:

Snowball Method: Pay off smaller debts first to gain momentum, then tackle larger ones. This provides psychological motivation by clearing debts faster.

Avalanche Method: Focus on debts with the highest interest rates first. This method saves more on interest in the long term.

Choose the strategy that suits you best and start making extra payments each month.

Step 4: Prioritize High-Interest Loans and EMI Payments
Debt with higher interest can escalate quickly, so prioritize clearing them first. Some common examples include:

Credit Card Debt: If part of your debt is on credit cards, try to pay it down as quickly as possible. Credit card interest rates are often the highest.

Personal Loans: If your Rs 10 lakh debt includes high-interest loans, prioritize these over lower-interest obligations.

Contact your creditors to explore if they can reduce your interest rate temporarily. Any reduction helps ease the debt burden.

Step 5: Consider Debt Consolidation Options
Debt consolidation combines multiple loans into a single, lower-interest loan, making it easier to manage. Options include:

Personal Loans: Look for a lower-interest personal loan to pay off existing debts. This can reduce the overall interest burden.

Balance Transfer: If a major portion of your debt is on a credit card, look for a card offering a low or zero-interest balance transfer option.

Be cautious of fees associated with consolidation options and make sure to do thorough research. Consolidation can simplify payments and potentially save you money on interest.

Step 6: Start a Small Emergency Fund
While repaying debt is crucial, having a small emergency fund (around Rs 5,000–Rs 10,000) can help you avoid additional debt. This fund is for unexpected expenses like medical emergencies or car repairs.

Building a small emergency cushion ensures you don’t rely on credit if unplanned expenses arise. Once your debt is cleared, you can gradually build a larger emergency fund.

Step 7: Avoid Taking on New Debt
Avoid credit cards, loans, or any new debt until you’ve repaid the current amount. New debt will delay your goal of becoming debt-free.

Instead of borrowing, prioritize saving for any purchases. Practicing patience with spending decisions will help prevent additional debt.

Step 8: Automate and Regularize Payments
Set up automated payments for your debt EMIs and monthly bills. Automation helps prevent missed payments, which can incur penalties and hurt your credit score.

If automated payments aren’t possible, set reminders to ensure timely payments.

Step 9: Track Progress and Stay Motivated
Track your progress each month and celebrate small wins, such as reaching specific milestones in debt reduction.

Seeing your debt balance decrease, even gradually, can keep you motivated.

Step 10: Seek Professional Guidance If Needed
If you feel overwhelmed, consider seeking guidance from a Certified Financial Planner (CFP). They can help you devise a structured plan tailored to your specific financial situation.

A CFP can also provide personalized advice on managing and reducing debt efficiently.

Finally
Your determination to achieve a debt-free life is commendable. By following these steps and staying disciplined, you’ll gradually pay off your debt and move toward financial freedom. Remember, small steps today will lead to a financially secure tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 08, 2024

Listen
Money
Dear sir/Ma'am, I want to invest long term mutual fund for my daughter marriage. She is now 15 years old and i want to invest for 10 years, please advised me which mutual fund best for me. My monthly investment amount is Rs. 5000.00/- please reply soon as soon possible.
Ans: Investing for your daughter's marriage is a thoughtful goal. With 10 years to grow your investment, mutual funds offer a practical approach to help achieve this objective. A disciplined investment of Rs 5000 per month can build a substantial corpus over time. Here’s a comprehensive guide to structuring this investment for long-term success.

Choosing the Right Type of Mutual Funds
For a 10-year horizon, equity mutual funds are suitable. They have the potential for higher returns over time. Considering a diversified mix of equity categories could balance growth with stability.

Equity-Oriented Funds: With their higher growth potential, equity funds can be ideal for long-term goals like marriage. Large-cap funds or diversified equity funds with a mix of large- and mid-cap investments can provide relative stability.

Balanced or Hybrid Funds: These funds allocate a portion to both equity and debt. This approach reduces risk while still capturing growth. Hybrid funds could be a good option to add stability.

Avoid Index Funds: While index funds are popular, they lack flexibility in managing market changes. Actively managed funds, however, allow fund managers to navigate market fluctuations, potentially offering higher returns.

Benefits of Regular Funds vs. Direct Funds
When considering direct funds, you miss out on expert guidance, which is vital for long-term investments. Regular funds through a Certified Financial Planner (CFP) ensure you get continuous support, fund reviews, and performance tracking. They help rebalance your portfolio when required, maximizing your returns and managing risks effectively.

SIP (Systematic Investment Plan) for Steady Growth
Setting up a monthly SIP of Rs 5000 is a practical approach. SIPs allow you to invest consistently, regardless of market highs and lows, which averages out costs over time. This approach, known as “rupee cost averaging,” helps reduce the impact of volatility.

Tax Implications on Mutual Fund Investments
Understanding tax rules on mutual funds is important.

Equity Mutual Funds: Gains above Rs 1.25 lakh attract a 12.5% tax on Long-Term Capital Gains (LTCG). Short-Term Capital Gains (STCG) are taxed at 20%.

Debt Mutual Funds: Both STCG and LTCG are taxed based on your income tax slab.

These tax rates are subject to change, so it’s crucial to monitor tax policies periodically. You may consult a tax advisor for updates and efficient tax planning.

Key Investment Tips to Reach Your Goal
Consistency: Stay disciplined with your SIPs to leverage compounding. Missing contributions can reduce the growth potential.

Regular Monitoring: Review fund performance at least once a year. This ensures the selected funds are meeting your expectations and objectives.

Professional Guidance: Consult a CFP periodically to align your investments with your financial plan. They can advise on any required adjustments to optimize your portfolio.

Adjusting for Inflation and Goal Cost
Over time, inflation will impact the cost of your daughter’s marriage. Your CFP can help you estimate the future value and adjust your SIP amount if needed. Gradually increasing the SIP amount can help you meet the target despite inflation.

Final Insights
Your commitment to this goal is commendable. By selecting the right mix of funds, maintaining discipline with SIPs, and staying informed on tax and fund performance, you’ll be well on your way to achieving the desired corpus for your daughter’s marriage.

Invest with confidence, plan regularly, and stay on track toward building a secure financial future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Radheshyam

Radheshyam Zanwar  |1033 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 08, 2024

Asked by Anonymous - Nov 08, 2024Hindi
Listen
Career
Hello! I am looking to change my career. Currently, I work as a DTP Operator and Graphic Designer in my maternal uncle's offsset printing press business. My father passed away 8 years ago, so my maternal uncle has taken on the responsibility of me, my mother, and my brother. I have been working under them for the past 5 years as a favor of them. However, there has been no financial growth or development in my current position. But maternal uncle asks me to continue to work with them as their childrens are out of their Offset Printing profession. So they expect me to handle the business in future. But this will not happen. Also I'm not sure of the future scope of Offset Printing Press profession due to digitization. Though my mind is telling me to change profession, as of my financial condtion is weak I would have to start again from zero. I am feeling unsure about what to do?
Ans: Hello.
Presently you are working as a DTP operator and Graphic Designer with your uncle. It seems that due to financial problems, your uncle might be taking undue advantage of your situation and taking it granted that you must work for him and his printing press as a bull for 24x7. You said, your uncle's children are not interested in running the printing press. Hence he is expecting to handle the business in the future. I think this is a golden time to negotiate with your uncle from a business point of view and put some terms and conditions in front of him. You must overtake the printing press fully in your control and share some part of the profit with him. Remember, you are young, have solid experience of 5 years and the most important thing is that, your uncle is not dependent on you only. This makes the situation in your favor. If your uncle is not ready to hand over the printing press business to you, then you have an option to search for another job and tell your uncle also in this regard. I can fairly say, your uncle will not think to lose you under any condition. In life, nothing is impossible, With the hands-on experience of 5 years, you may job in an advertising company and a reputed publishing house. Related to your insecurity feeling, even though you are working with your uncle, you are feeling insecure. Hence either force your uncle to accept your terms and conditions or leave him without any hesitation. Try with new people, new organizations, and new opportunities. A little change will make a big change in your life.
Best of luck for your bright future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x