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Ramalingam

Ramalingam Kalirajan  |4058 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 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 - Feb 23, 2024Hindi
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Money

I am 37. i need to have a corpus of around 1 cr when i retire at 60. right now I don't have any investments and ny NTH is 75K. Hiw much should i start investing pm to meet my goals

Ans: That's a fantastic goal! Looking to build a Rs. 1 crore corpus by 60 with a Rs. 75,000 monthly salary is a smart move. Let's get you started!

Planning for your future:

Time is your friend! Starting at 37 gives your investments a long time to grow through compounding.
We need a plan! Consider consulting a Certified Financial Planner (CFP). They can create a personalized plan considering your income, expenses, risk tolerance, and goals.
Understanding your investments:

Actively managed funds: Unlike index funds, these funds have professional managers who aim to outperform the market. We can explore options that suit your risk profile.
Regular investments: Setting up a Systematic Investment Plan (SIP) helps you invest a fixed amount regularly, building discipline and benefiting from rupee-cost averaging.
Now, about the numbers:

While I can't give specific investment amounts without a detailed plan, here's a general idea:

Factor in inflation: Aim to build a corpus that considers inflation, so your Rs. 1 crore today has the same buying power when you retire.
Investment returns: Expected returns from your investments will impact the amount you need to invest monthly.
Next steps:

Talk to a CFP! They can help you determine the ideal monthly SIP amount based on your goals and risk profile.
Start investing early! Even a small amount invested regularly can grow significantly over time.
Remember:

Building a corpus takes discipline. Stick to your investment plan!
Regularly review your plan with your CFP to ensure it stays aligned with your evolving goals.
I hope this helps!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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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Asked by Anonymous - Feb 22, 2024Hindi
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Sir., my monthly expense is 100000 now and monthly income from house rent is 40k. My age is 47., my pf as per today 50L. Share 8 L and FD 4L, SGB 12L. Maintain same lifestyle after 60., how much corpus I need and how much I should start investing. Kindly clarity
Ans: At age 47, it's commendable that you are thinking about your retirement needs. Maintaining your current lifestyle post-retirement requires careful planning. Let's analyse your current financial situation and what you need to achieve your retirement goals.

Current Financial Status
Your monthly expense is ?100,000, and your income from house rent is ?40,000.

You have accumulated significant assets:

Provident Fund (PF): ?50 Lakhs

Shares: ?8 Lakhs

Fixed Deposits (FD): ?4 Lakhs

Sovereign Gold Bonds (SGB): ?12 Lakhs

These assets show that you have diversified investments, which is excellent for balancing risk.

Estimating the Retirement Corpus
To maintain the same lifestyle after retirement, you need to consider inflation. Your expenses will likely increase over time due to inflation. Assuming a 6% annual inflation rate, your current monthly expenses of ?100,000 will be much higher when you retire at 60.

You'll need a corpus that can generate enough income to cover these expenses. Let's assume you live up to 85 years. This means your corpus should last for 25 years post-retirement.

Calculating the Required Corpus
Estimating the exact corpus involves complex calculations. A Certified Financial Planner can help with precise numbers. However, a rough estimate is that you need about 20-25 times your annual expenses at the time of retirement.

Given your current expenses, you might need a corpus of around ?6-7 crores, factoring in inflation.

Investment Strategy to Build the Corpus
You need to start investing more aggressively to reach your retirement goal. Here's a suggested strategy:

1. Increase Equity Investments

Equities typically offer higher returns compared to other asset classes. Consider increasing your investment in actively managed equity mutual funds. These funds are managed by professional fund managers who aim to outperform the market.

2. Systematic Investment Plan (SIP)

Start a SIP in mutual funds. It helps in averaging the cost of investment and provides disciplined investing. SIPs are ideal for long-term wealth creation.

3. Diversify Your Portfolio

Diversification reduces risk. You already have SGBs, FDs, and shares. Ensure a good mix of equity, debt, and gold. This balanced approach mitigates risks.

4. Consult a Certified Financial Planner

A Certified Financial Planner can help tailor a plan specific to your needs. They can provide guidance on asset allocation, risk management, and tax efficiency.

Managing Your Existing Assets
Provident Fund (PF)

Your PF is a secure and stable investment. Continue contributing to it. It provides a safety net with assured returns.

Shares and Equity

Monitor your share portfolio regularly. Avoid putting all your money in one stock. Diversify across sectors to minimize risk.

Fixed Deposits (FD)

FDs are safe but offer lower returns. Consider using them for emergency funds or short-term goals.

Sovereign Gold Bonds (SGB)

SGBs are good for diversification. They also provide a hedge against inflation. Keep them as part of your portfolio.

Regular Review and Adjustment
Regularly review your financial plan. Adjust your investments based on market conditions and your changing needs. Stay informed and adapt to new financial opportunities.

Conclusion
Planning for retirement requires a strategic approach. Your current assets provide a strong foundation. By investing wisely and consulting a Certified Financial Planner, you can achieve your retirement goals.

You have already taken the first step by evaluating your needs. With disciplined investing, you can ensure a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Asked by Anonymous - Jun 25, 2024Hindi
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I was not all at studious till class 8.i used to rank hardly 45 th in a class of 50 students.Then in class 9,my teacher changed my section.When I went to the new section,I felt in love at first sight.This was my first love obviously (But one-sided).She was a topper and beautiful.I proposed her.She rejected me and told me that I am worthless and I have no future.I was very sad for 6-8 months.After that I decided to prove her that I am worthy and I can do something.I left everything (cricket,karate,dance, singing, drawing, swimming-I used to learn them but I left).I completely focused on to prove my love.I started studying for more than 10 hrs daily.I was just 8 marks behind her in my 10 boards.I cried a lot that I lost the battle.She became 6 th and I became 9 th in class in 10 th class.Then I gathered hopes again.This time I started studying as much as I could(14-16 hrs daily).I became 2nd in class 12 and she became 3rd.I got just 1 mark more than her.I know it's a great win.I have proven myself but I don't know why I can't move on from her.I have been in 4 relationship in 4 respective years (class-9 -10 -11 -12 respectively) but I am not finding any interest in these relationships.I am completely confused what is happening with me. Please tell me what should I do now.
Ans: Dear Anonymous,

I love how you took a negative comment on you and turned it into something so positive and productive. Though revenge is never the right approach, I must commend you for your dedication and for letting it be a driving force for something amazing. Now, coming to your question, why you are not being able to forget her? It's simple. You have let her words affect you and you are still holding on to it. As amazing as your results are, you seem happier to have beaten her than about your own success. I suggest focusing on yourself now. You did great! You deserve to be proud of yourself, for your efforts and achievements, not for achieving more than her. And one more thing, do you want to date someone who had such a low opinion of you? Is that how you see yourself? Trust me, you deserve someone who reciprocates your feelings and is proud of you. And about your relationships not working, you are still a kid. You have plenty of time to find the right relationship and when you do, it will work.

Best Wishes.

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Ravi

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Asked by Anonymous - Jun 22, 2024Hindi
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I am in love with my boyfriend since 18 years. I waited till he gets his first job to tell my parents abut him. When the time came we both informed in our family that we want to get married. His father said yes initially and asked my family to meet at a common place. Later once my family agreed and came and called to inform his family, his mother denied saying his father is against this marriage. My parents called my boyfriend and asked whether he wants to marry me without his father approval and he said obviously!!! Why wouldn’t I? After 4 months, me and my boyfriend set a date and informed both our family that we are getting married on this date on july. My family has been always supportive and they support me here as well. But his family reacted differently saying we can’t allow you to marry on this date as this month is his birth month (some silly excuses) and they informed we can assure you we will get you married to your girlfriend in November or December. That time my boyfriend also agreed with his mother knowing that all wedding venues were booked and I have paid some kind of advance amount as well. And NOW!! My family went crazy over him saying howcome he called off this marriage?? My boyfriend is asking me please give me a second chance that I will convince my parents to marry you in November or December. If they disagree i will move out and marry you only. How can I trust him this time? SHOULD I?
Ans: Dear Anonymous,

I understand you are in a difficult situation and trusting someone once they have broken it is difficult. I also understand your parent's concern. I am sure you do too. Now, the real question is, do you want to give him another chance? I know he broke your trust by moving the dates suddenly, but maybe let's try to find out why he did it.

You have been with him for a long time. You should have some clue about the type of person he is; it is totally up to you to decide whether you want to give him another chance or move on with your life. Neither would be a wrong choice. But it should be your choice. Look at the pros and cons. All things he got right to date and the wrongs he did too. Weigh them against each other and by the end of it, you should have some clarity.

Best Wishes.

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Nayagam P

Nayagam P P  |783 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2024

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Good afternoon sir,my son is studying in class 10 now and we're unable to decide his future career prospects.based upon his interest we've shortlisted ipmat and clat after 12 th.Kindly guide about the career prospects and difficulty level of both the exams / couses and the stream he must take in class 11 for the same.Thanks.
Ans: Sumeet Sir, Please Note, (1) Syllabus for both Exams are more or less same. (2) It is advisable to join any Coaching Center once your Son completes his 10th Standard, either offline (if nearby your home) or online. (3) From now onwards, he can even practice questions of Quantitative Ability, Logical Reasoning & Verbal Ability of 10th Level to get him mentally prepared for Advance Problems for both Exams during his 11th / 12th Standards. (4) He should focus more on weak subjects and practice more till he appears in both Exams (5) Should also plan to manage both School Syllabus & also preparation for these 2 exams (6) He has to keep on attempting Online Test Series frequently to not only to know the wrongly answered questions but also the speed and accuracy, besides time taken for each question (7) MOST IMPORTANT which your son should keep in mind. Law Courses are tougher, compared to Management Courses. (8) Aspiring Law Students should read, write & memorize a lot like Sections, Sub-Sections, Clauses & Sub-Clauses various Bare Acts apart from Specialisation your son chooses (Civil, Criminal, Company, Labour Laws etc.) (9) According to a recent Article in 'Times of India', most Law Graduates prefer working in Corporates / Companies instead of Practising as Lawyers in Courts due to lack of lengthy litigation process and lack of patience. Please think over this, whether your son will be suitable for this? If yes, he can appear in CLAT Exam also apart from IPMAT as a back-up (10) Please shortlist the Universities / Colleges to be targeted for both exams and also the know the expected Score / Percentile / Marks for the Top-Ranked Universities / Colleges. I hope I have covered important points Sir. If you need any other clarification(s), please follow-up with me.

All the BEST for your Son's Bright Future, Sir.

To know more on ‘ Careers | Education | Jobs’, Ask / Follow me here in RediffGURU.

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Study Abroad Expert - Answered on Jun 26, 2024

Asked by Anonymous - Jun 23, 2024Hindi
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I am 22 years old and graduated from cllg in 2023 and currently working. I want to pursue MS in CSE which country could be the best option in the current situation
Ans: Hello,

To begin with, thank you for contacting us. To answer your question first, I would like to let you know that a number of variables including the cost, educational quality, possibilities for research, and employment prospects post-graduation, play a key role in selecting the best nation for pursuing an MS in Computer Science and Engineering (CSE).

As of 2024, the United States continues to be a popular choice owing to its renowned universities, vast research facilities, and robust labor market in technology hotspots viz., Silicon Valley. I would like to tell you that nations viz., Canada and Germany are also great choices offering advantageous immigration laws, and top-notch instruction with relatively cheaper tuition fees. You would be glad to know that public universities in Germany frequently charge cheap or no tuition fees, whereas Canada is renowned for its welcoming attitude towards overseas students and potential routes to permanent residency. Each choice has distinct advantages, thus, when making your decision, I would suggest that you take into account your financial condition, personal choices, and professional objectives.

You can also get in touch with us and our team of expert counselors will provide information on MS programs in CSE in several other countries like the UK, Australia, Germany, among many others.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

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Sushil

Sushil Sukhwani  |424 Answers  |Ask -

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Sir my son is CSE graduate and having one year exp.need to study MS in foreign countries,can you pl suggest which country is best and economical,
Ans: Hello Annamalai,

First and foremost, thank you for getting in touch with us. To answer your question first, I would like to tell you that Germany is a great option for a Computer Science Engineering (CSE) graduate looking for an affordable yet top-notch MS program overseas. Outstanding education in computer science and engineering with cheap or no tuition fees is offered by universities in Germany, particularly public universities. Moreover, Germany boasts a strong technology sector and a dynamic labor market which can offer excellent job opportunities following graduation.

Canada, renowned for its first-rate education and comparatively economical tuition in comparison to the United States, is another feasible choice. Universities in Canada offer robust computer science programs and the nation’s friendly immigration laws may make it simpler for graduates to remain and find employment post the completion of their education. I would like to let you know that excellent value for money as well as opportunities for professional growth in the technology sector are offered by both the nations.

You can also get in touch with us and our team of expert counselors will provide information on MS programs in several other countries like the USA, the UK, Australia, among many others.

For more information, you can visit our website: www.edwiseinternational.com

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Ramalingam

Ramalingam Kalirajan  |4058 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 2024

Money
Hello sir, I have invested 48.49k in mirae asset NYSE FANG + ETF fund and currently it is 72.13k, as this mutual fund is stopped for further investing, should i stay invest or do SWP and utilise this fund somewhere else. I already have parag pariek flexi fund (345k), quant infrastructure fund (66k) , zerodha nifty large mid 250 index (76k) (recently started), kotak equity oppertunities(58k) & axis small cap (53k)
Ans: First of all, congratulations on your investment journey. You've done an excellent job in building a diverse portfolio. It's impressive to see how your investments have grown over time. Now, let's evaluate the current scenario and decide the best way forward.

Current Portfolio Overview
Your investment portfolio includes various funds:

A significant investment in a technology-focused fund, which has shown substantial growth.

Holdings in a flexi-cap fund, infrastructure fund, large-mid cap index, equity opportunities fund, and small cap fund.

This diversification is a positive sign. It shows you are spreading your risk across different sectors and types of funds.

Analyzing the Technology-Focused Fund
The technology-focused fund you mentioned has performed exceptionally well. From Rs 48.49k to Rs 72.13k, that's an impressive increase. This fund’s closure to new investments often indicates that it has reached a substantial size or the fund house wants to manage it efficiently.

Given its closure, let's consider your options.

Pros of Staying Invested:

Potential for Continued Growth: Technology stocks, especially the leading ones, have shown resilience and growth potential.

No Immediate Need for Action: If you believe in the long-term potential of the technology sector, staying invested might be wise.

Cons of Staying Invested:

Market Volatility: Technology stocks can be volatile. Recent trends show fluctuations, which might affect returns.

Concentration Risk: A large portion of your growth is tied to this sector. Diversification might be safer.

Pros of Systematic Withdrawal Plan (SWP):

Regular Income: SWP can provide a steady income stream. Useful if you need liquidity.

Rebalancing Opportunity: You can reinvest in other sectors or funds to balance your portfolio.

Cons of Systematic Withdrawal Plan (SWP):

Missing Out on Growth: If the technology sector continues to grow, you might miss out on future gains.

Tax Implications: SWP might have tax consequences depending on your holding period.

Assessing Your Other Funds
Now, let’s look at your other investments.

Flexi Cap Fund:

Pros: These funds invest across market caps, providing flexibility and diversification. Your substantial investment here shows confidence in this strategy.

Cons: Returns can vary depending on market conditions. It's essential to monitor the fund’s performance regularly.

Infrastructure Fund:

Pros: Infrastructure development in India offers growth potential. This sector is crucial for economic development.

Cons: These funds can be cyclical. They might underperform during economic downturns or policy changes.

Large-Mid Cap Index Fund:

Pros: Index funds offer broad market exposure and lower expense ratios.

Cons: They mimic the index performance, lacking the potential for outperformance that actively managed funds might offer. Your investment here might limit growth potential compared to active funds.

Equity Opportunities Fund:

Pros: These funds can take advantage of market opportunities, offering potential for higher returns.

Cons: Higher risk due to active management. Performance depends on the fund manager's skill.

Small Cap Fund:

Pros: Potential for high returns. Small cap stocks can grow significantly over time.

Cons: Higher risk and volatility. Small cap stocks can be affected by market conditions more than large caps.

Direct vs Regular Funds
You mentioned investing through direct funds. Let’s discuss the disadvantages of direct funds and the benefits of regular funds through a Certified Financial Planner (CFP).

Disadvantages of Direct Funds:

Lack of Guidance: Direct funds require you to research and choose funds on your own. Without expert guidance, this can be risky.

Time-Consuming: Regular monitoring and rebalancing are necessary. It can be time-consuming and challenging without professional help.

Benefits of Regular Funds:

Professional Advice: Investing through a CFP ensures you get expert advice tailored to your financial goals.

Portfolio Management: CFPs can help in regularly monitoring and rebalancing your portfolio, ensuring it remains aligned with your objectives.

Strategic Recommendations
Based on the analysis, here are some strategic recommendations:

Rebalancing Your Portfolio:

Diversification: Consider diversifying away from technology to other sectors with growth potential. It will reduce concentration risk.

Risk Management: Rebalance your portfolio to align with your risk tolerance and investment goals.

Consider SWP for Liquidity:

Partial SWP: You might opt for a partial SWP from your technology-focused fund. It provides liquidity while keeping some exposure to potential growth.

Reinvestment Strategy: Use the SWP proceeds to invest in other funds or sectors, balancing your portfolio.

Monitoring and Regular Review:

Regular Check-Ups: Keep an eye on your investments. Regular reviews ensure your portfolio remains aligned with your goals.

Adjust as Needed: Be ready to adjust your investments based on market conditions and personal circumstances.

Final Insights
Your investment journey has been commendable. The growth in your technology-focused fund is impressive. However, it's essential to consider the risks and potential rewards of staying invested or opting for an SWP. Diversification and regular portfolio review are crucial for long-term success.

Consider the benefits of professional guidance through regular funds. It can provide the expertise and peace of mind necessary for achieving your financial goals. Rebalancing your portfolio and ensuring it aligns with your risk tolerance will help in navigating market fluctuations effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...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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