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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jun 09, 2021

Mutual Fund Expert... more
Rajshekhar Question by Rajshekhar on Jun 09, 2021Hindi
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I am 37 year old working woman. I have Rs. 3.5 lakh and want to invest in FD, Gold & MF one time and afterwards want to do SIP of Rs. 8000 pm.

Ans: You can invest 63% in Equity oriented MF, Gold – 10 to 15% and remaining amount is Debt MF  / FD

You may consider the below funds for lumpsum and monthly SIPs

a)   UTI Flexi Cap – Growth

b)  Parag Parikh Flexi- Cap Growth

c)   Axis ESG Equity Fund – Growth

d)  DSP Mid Cap Fund – Growth

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  |7122 Answers  |Ask -

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

Asked by Anonymous - May 10, 2024Hindi
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I was 47 years old and now i want to invest in MF and sip i want to invest 10 lakh lumpsum and 20000 sip , please guide
Ans: It's fantastic that you're considering mutual fund investments for your financial future. Let's craft a strategy to invest your lump sum amount of ?10 lakhs and set up a SIP of ?20,000 per month.

Investing the Lump Sum Amount
Diversification
Diversifying your lump sum investment is crucial to manage risk and maximize returns. Consider allocating the amount across different types of mutual funds based on your risk tolerance and investment goals.

Asset Allocation
Allocate a portion of your lump sum to equity funds for long-term growth potential. Additionally, allocate a portion to debt funds for stability and capital preservation.

Fund Selection
Choose funds with a proven track record of consistent performance and aligned with your risk profile. Opt for a mix of large-cap, mid-cap, and multi-cap equity funds, along with quality debt funds.

Setting Up SIPs
Monthly Contribution
A SIP of ?20,000 per month is a significant commitment and can help you achieve your financial goals over time. Ensure that the SIP amount is comfortably affordable and does not strain your monthly budget.

Fund Selection
Select SIPs in mutual funds that complement your lump sum investments. Maintain a diversified portfolio with exposure to various sectors and market caps to spread risk.

Consistent Investing
Commit to regular and disciplined investing through SIPs, regardless of market conditions. Stay invested for the long term to benefit from the power of compounding and rupee-cost averaging.

Monitoring and Review
Regular Assessment
Monitor the performance of your mutual fund investments periodically. Review your portfolio at least once a year and make adjustments if required based on changes in market dynamics or personal financial goals.

Rebalancing
Consider rebalancing your portfolio if the asset allocation deviates significantly from your target allocation. Realign your investments to maintain the desired risk-return profile.

Conclusion
By investing ?10 lakhs lump sum and setting up a SIP of ?20,000 per month in mutual funds, you're taking proactive steps towards building wealth for your future. Stay committed to your investment plan, and consult with a financial advisor if needed to ensure your investments are in line with your financial goals.

If you need further assistance or have any questions along the way, feel free to reach out. I'm here to help you navigate your investment journey and achieve financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 16, 2024

Money
I am 46 years old want to invest in MF sip 50000 monthly. Please suggest
Ans: At 46, planning to invest Rs 50,000 per month in a Mutual Fund Systematic Investment Plan (SIP) is a solid strategy to build wealth over time. Mutual funds offer the advantage of flexibility, professional management, and diversification, which are crucial as you prepare for long-term financial goals like retirement, your children’s education, or simply wealth creation.

Let’s explore how you can structure your investment plan in detail to make the most of your Rs 50,000 SIP.

Consider Your Financial Goals
To begin with, it’s important to align your mutual fund investments with your financial goals. At 46, your key financial objectives might include:

Retirement Planning: You might aim to build a corpus for a comfortable post-retirement lifestyle.

Children’s Education or Marriage: If you have children, their future educational or marriage-related expenses might be on your radar.

Wealth Creation: You might want to accumulate a sizable wealth corpus over the next 10-15 years for personal or business use.

Clearly defining these goals will help you choose the right types of funds that suit your timeline and risk tolerance.

Asset Allocation: A Balanced Approach for Your Age
A well-thought-out asset allocation between equity and debt mutual funds will ensure your investments grow steadily while managing risk. For someone at 46, a good balance would be:

70% in Equity Mutual Funds: Equity funds are crucial for long-term growth. They provide inflation-beating returns over time.

30% in Debt Mutual Funds: Debt funds offer lower risk and provide steady income, which adds stability to your portfolio.

This allocation strikes a balance between risk and reward, which is especially important as you approach retirement age.

Equity Mutual Funds for Growth
Equity funds will form the backbone of your investment portfolio. However, within equity mutual funds, diversification is key. You can consider the following categories:

Large-Cap Funds: These funds invest in large, established companies. Large-cap funds provide stability and moderate growth with relatively lower risk. They should form the core of your equity allocation.

Mid-Cap Funds: These funds invest in mid-sized companies, which have higher growth potential compared to large-cap stocks. However, they are slightly riskier. Including mid-cap funds in your portfolio can help boost your returns.

Small-Cap Funds: Small-cap funds invest in smaller companies, which offer high growth potential but come with higher volatility. Allocating a smaller portion of your equity investment to small-cap funds can enhance returns over the long term.

Flexi-Cap Funds: These funds allow the fund manager to invest across large, mid, and small-cap stocks. Flexi-cap funds provide diversification and flexibility, making them a good option for long-term wealth creation.

Why Actively Managed Funds Over Index Funds?
While index funds are often touted for their low cost, actively managed funds have distinct advantages, especially for investors looking for higher returns. Here’s why you should consider actively managed funds:

Higher Return Potential: Active fund managers can handpick stocks and sectors that have the potential to outperform the broader market. Index funds, on the other hand, merely mirror the market.

Risk Management: Actively managed funds offer the flexibility to adjust holdings based on market conditions. This can provide better downside protection compared to index funds, which are tied to market performance regardless of conditions.

Debt Mutual Funds for Stability
Debt funds provide the stability you need in your portfolio, ensuring that even in times of market downturns, a portion of your investments remains safe. Here’s what you can consider:

Short-Term Debt Funds: These funds are less volatile and provide consistent returns over short to medium terms. They are a good option for parking funds that you may need in the next 2-5 years.

Dynamic Bond Funds: These funds adjust the portfolio duration based on interest rate movements, which can help in generating better returns when interest rates are falling.

Corporate Bond Funds: Corporate bond funds invest in high-rated corporate debt and offer higher returns than government securities while maintaining a lower risk profile.

SIPs: The Power of Consistent Investment
SIPs are a great way to invest regularly without worrying about market timing. Here’s why:

Rupee Cost Averaging: By investing a fixed amount regularly, you automatically buy more units when the market is low and fewer units when the market is high. This averages out your purchase cost.

Disciplined Investment: Investing Rs 50,000 every month ensures you stay committed to your financial goals. It removes the temptation of trying to time the market, which can often result in poor decisions.

Compounding Benefits: Over time, your investments can grow exponentially due to compounding. The earlier you start, the better the results in the long run.

Direct vs Regular Plans: Why Regular Plans Through a CFP Are Better
Direct plans may seem appealing due to their lower expense ratios, but for most investors, especially those looking for personalised advice, regular plans managed through a Certified Financial Planner (CFP) offer better value. Here’s why:

Professional Management: A CFP helps you select the right funds based on your risk profile and goals. Direct plans leave you to manage your investments on your own, which can be challenging without the right expertise.

Regular Monitoring: Market conditions and personal circumstances change over time. A CFP will review and rebalance your portfolio regularly to ensure it remains aligned with your goals. In direct plans, you have to do this on your own.

Rebalancing: Over time, your asset allocation may need adjustment as you get closer to your financial goals. A CFP can help rebalance your portfolio, shifting from riskier assets like equity to safer assets like debt when required.

The Importance of Portfolio Reviews
Even after setting up a robust SIP, reviewing your portfolio regularly is crucial. Here’s why:

Market Adjustments: Market conditions can change drastically over time. A review allows you to make necessary adjustments to safeguard your investments.

Goal Realignment: Your financial goals may evolve with time. Regular portfolio reviews ensure that your investments continue to align with your changing needs.

Asset Rebalancing: As you grow older, you may want to shift towards more stable, lower-risk investments. A periodic review helps in adjusting your asset allocation accordingly.

Tax Planning for Mutual Funds
With the recent tax changes, it’s important to plan your investments carefully to minimise tax liability:

Holding Period: For equity funds, aim to hold your investments for more than a year to qualify for long-term capital gains tax, which is lower than short-term capital gains tax.

Debt Fund Taxation: With the removal of indexation, debt funds are now less tax-efficient. You may want to explore other low-risk investment options, such as fixed deposits, for short-term needs if tax efficiency is your priority.

Final Insights: Building a Strong Financial Future
Investing Rs 50,000 monthly in a SIP is a powerful way to build wealth over time. Here's a recap of the key takeaways:

Allocate 70% of your portfolio to equity funds and 30% to debt funds.

Focus on actively managed funds for higher return potential and better downside protection.

Use SIPs to take advantage of rupee cost averaging and disciplined investing.

Be aware of the new tax rules on debt funds and plan your investments accordingly.

Regular portfolio reviews with a Certified Financial Planner will help you stay on track with your financial goals.

By following this structured approach, you can build a balanced and growth-oriented portfolio that aligns with your financial goals, providing security and stability for your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 24, 2024

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My name is Vijay,45 yrs with 3 kids.i have zero knowledge about sip and mf.i can invest 75000 per month and looking for long term.kindly suggest sir.
Ans: Vijay, you're 45 years old, and with 3 kids, long-term financial planning is crucial. Since you're new to SIP (Systematic Investment Plan) and mutual funds, let's walk through the essentials and build a plan that aligns with your goals. You can invest Rs 75,000 per month, which provides a strong foundation for long-term growth.

Benefits of SIP for Long-Term Investments
SIP allows you to invest a fixed amount regularly in mutual funds. It is a disciplined way to invest, especially for beginners. Some key benefits are:

Rupee Cost Averaging: SIP spreads your investment over time, buying more units when prices are low and fewer when prices are high. This averages out your cost.

Power of Compounding: The longer you stay invested, the more you benefit from compounding, where returns generate more returns.

Convenient and Flexible: SIP is easy to set up, and you can increase, decrease, or pause your investments as your financial situation changes.

Importance of Diversification
When you invest in mutual funds, you're putting your money into a variety of assets like stocks, bonds, and other instruments. This reduces your risk, as not all assets will perform the same way. Your portfolio should be spread across different sectors and categories to minimize the impact of market volatility.

Portfolio Structure: Key Considerations
Before diving into mutual funds, it’s important to understand the types of funds available:

Large Cap Funds: These funds invest in large, stable companies. They're less risky but offer moderate returns. Suitable for long-term stability.

Mid and Small Cap Funds: These funds invest in mid-sized and smaller companies, which can offer higher returns but with increased risk. These are good for long-term goals but may be volatile in the short term.

Multi-Cap Funds: These funds invest in companies of all sizes. They offer a balance between risk and return and can be a core part of your portfolio.

Debt Funds: These invest in fixed-income instruments like bonds. They offer safety and stability, ideal for conservative investors or to balance the risk from equity funds.

Hybrid Funds: These invest in a mix of equity and debt, providing a balanced approach for investors looking for moderate risk and return.

Potential Risks in Mutual Funds
Mutual funds come with market risks, especially equity-based funds. Here's what you should be aware of:

Market Volatility: Stock market fluctuations can cause fund values to rise or fall in the short term.

Liquidity Risk: While mutual funds are generally liquid, some funds may impose exit loads or restrictions on withdrawal for a certain period.

Taxation: Gains from mutual funds are taxed based on the holding period. Long-term gains above Rs 1.25 lakh from equity funds are taxed at 12.5%. Short-term gains are taxed at 20%. Debt fund gains are taxed as per your income slab.

The Role of a Certified Financial Planner (CFP)
Working with a Certified Financial Planner (CFP) ensures that your investments align with your goals and risk tolerance. A CFP will help you create a strategy tailored to your situation. Here’s how they help:

Goal Setting: A CFP helps identify your short-term and long-term financial goals.

Risk Assessment: They assess your risk tolerance and suggest a balanced portfolio.

Regular Review: They review your portfolio periodically and suggest adjustments as needed.

Tax Planning: They also help you minimize taxes on your investments, keeping your returns maximized.

Disadvantages of Index Funds
You may come across index funds, which aim to replicate the performance of a specific index (e.g., Nifty 50). However, these have limitations:

No Active Management: Index funds follow the market and don’t try to outperform it. There’s no flexibility to avoid underperforming sectors or stocks.

Limited Customization: They don’t adjust based on market trends or your personal financial goals.

Lower Returns Potential: Actively managed funds have the potential to outperform the index by selecting high-performing stocks and sectors.

Disadvantages of Direct Mutual Funds
Direct mutual funds have lower fees since they bypass middlemen. But managing them yourself comes with challenges:

Time-Consuming: You need to actively research and manage your portfolio, which can be difficult if you lack time or knowledge.

Risk of Wrong Choices: Without expert guidance, there’s a higher chance of making mistakes in fund selection, which can impact your returns.

Lack of Guidance: Direct plans don’t offer the benefit of an advisor or CFP, who can guide you through market cycles and ensure your portfolio aligns with your goals.

How to Allocate Rs 75,000 Monthly
You can start with a simple allocation strategy that balances risk and return:

Large Cap Funds: Rs 25,000 for stability and moderate growth.

Mid/Small Cap Funds: Rs 25,000 for higher growth potential but with added risk.

Multi-Cap or Flexi-Cap Funds: Rs 15,000 for diversification across different company sizes.

Debt Funds: Rs 10,000 for safety and regular income.

This way, you can ensure your portfolio has a mix of growth, stability, and security.

Investing for Your Kids' Future
Since you have three kids, their education and future expenses should be part of your planning. A portion of your SIP can be directed toward funds with a long-term horizon, such as children's plans, or diversified equity funds, which can grow over 10 to 15 years.

Tax Implications and Planning
Ensure that you’re mindful of tax rules when investing in mutual funds. Gains from equity funds and debt funds are taxed differently, so it’s important to structure your withdrawals carefully.

You can discuss tax planning strategies with your Certified Financial Planner to minimize the tax burden.

Monitoring and Reviewing the Portfolio
Your investment journey doesn't end once you've set up the SIP. Regular reviews are essential. Markets change, and so do your personal circumstances. Your CFP can help you:

Rebalance: Ensure that your portfolio stays aligned with your risk tolerance and goals by adjusting the fund allocation as needed.

Tax Adjustments: Plan your withdrawals or switches in a way that minimizes tax liability.

Goal Tracking: Review progress regularly to ensure you're on track for long-term goals like retirement or your kids’ education.

Final Insights
Vijay, with a long-term perspective, Rs 75,000 per month can help you achieve significant wealth growth. Using a structured approach through SIPs in a diversified portfolio will allow you to balance risk and return. With the right support from a Certified Financial Planner, you can stay on track and make informed decisions.

The key to success in mutual fund investing is consistency, diversification, and regular review. Your willingness to learn more about mutual funds will empower you to make informed choices. And always remember that a Certified Financial Planner can guide you in the right direction to achieve your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Hello mam, I am a girl 18years old I had pcod since my period started I got my period when I was 13years that time everything was ok but after few months I was bleeding heavy getting menses 2-3in a month so my mom got very worried and she takes me to a gynaecologist and she prescription and tablets like "novelon"and then I am ok but after that I didn't get my periods for few months and also that time lockdown happened so we can't go to a gynaecologist and then after everything got normal and hospitals we go to the doctor and she asked from how many time you don't get your menses and then I replied from past 6months and she shouted on me and immediately told me to have ultrasound and after seeing the reports she said you have pcod then the rest of the story you know I am still suffering from this disease I don't get my periods if I don't take the tablets now I can't understand what to do even I changed a lot of gynaecologists but nothing happened and they this is a incurable disease you have to take tablets for lifetime and also I am not even financially strong
Ans: Polycystic ovary syndrome (PCOS) is a hormonal condition that can cause irregular or absent menstrual periods.
Higher amounts of androgens in PCOS can interfere with egg development and ovulation, leading to skipped or absent periods.
One of the best ways to cope with PCOS is to maintain a healthy bodyweight, eat nutritious foods and exercise regularly.
LIFESTYLE CHANGES:
Eating healthy foods, exercising regularly, and maintaining a healthy weight can help regulate your menstrual cycle
BIRTH CONTROL PILLS:
Combination oral contraceptives (COCs) can help regulate menstrual periods and treat acne and hirsutism. It can take up to six months to see if birth control is effective.
ANTIESTROGENS:
These medicines can help with skin and hair growth problems
METFORMIN
This diabetes medicine can help control ovulation and androgen levels, which can make menstrual cycles more regular
Supplements containing
Myo ionositol, chirositol, vitamin D, chromium also helps in maintaining pco

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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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