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

Milind Vadjikar  |1238 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 26, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Nov 23, 2024Hindi
Listen
Money

I am 38 years old. I have not done any investment yet. Can you please guide how I can start? I can invest upto Rs 5,000 monthly.

Ans: Hello;

What is purpose of investment (retirement planning, kid's education house purchase)?

What is the time horizon (number of years)?

Based on your response, I can recommend you suitable options.

Thanks;
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  |8511 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 10, 2024

Money
I am 41 Years old .I haven't done any investment yet. can you please guide how I can start. I can invest upto 5000 now.
Ans: It's fantastic that you're considering starting your investment journey now. The fact that you’ve chosen to invest Rs. 5,000 per month is a commendable first step. This amount, if invested strategically, can grow into a significant corpus over time. At 41, while you still have time before retirement, every rupee you invest now can be crucial for your financial security.

Let’s break down the best ways to start investing with a comprehensive, easy-to-follow guide.

1. Setting Clear Financial Goals
Before diving into any investment, you must define your financial goals. These goals will help you stay focused and make better decisions.

Short-term goals (1-3 years): Emergency fund, vacation, buying a gadget or small car.

Medium-term goals (3-7 years): Children's education, home renovation, etc.

Long-term goals (7+ years): Retirement planning, children's marriage, etc.

Once you know your goals, you can align your investments to meet these objectives.

2. Building an Emergency Fund
Before making any long-term investments, it is important to secure an emergency fund.

Why? This fund ensures you are financially protected if you face an unforeseen event like job loss, medical emergency, etc.

How much? You should aim for at least 6-9 months of your expenses. If your monthly expense is Rs. 40,000, your emergency fund should be Rs. 2.4-3.6 lakh.

Where? Keep this money in a liquid instrument like a bank savings account or liquid mutual fund, which provides easy access during emergencies.

3. Risk Assessment: Understanding Your Comfort Level
You need to assess your risk tolerance. Since you’re starting at age 41, your risk appetite might be moderate, balancing between safety and growth.

Low risk tolerance: Invest in safer instruments like debt mutual funds or fixed deposits.

Moderate risk tolerance: A balanced portfolio with a mix of equity and debt is ideal.

High risk tolerance: More exposure to equity mutual funds can give better long-term returns, but with higher volatility.

4. Investment Options Based on Your Profile
Now, let’s look at how you can allocate your Rs. 5,000 investment based on your goals and risk profile.

A. Equity Mutual Funds (Actively Managed)
For long-term wealth creation, equity mutual funds can play a vital role. As you’re 41, you still have time to benefit from equity investments. The key here is actively managed funds. Actively managed funds provide the expertise of fund managers who can select stocks to outperform the market.

Why not index funds? Index funds are passively managed and only mirror the market. They may not offer the potential for higher returns that actively managed funds do. An expert fund manager can navigate different market situations and outperform.

How much? Start by allocating Rs. 3,000 from your Rs. 5,000 monthly investment towards equity mutual funds. Over time, as you gain confidence and understanding, you can increase your allocation.

B. Debt Mutual Funds
Equity alone may not be enough. You should also focus on maintaining a balance with debt mutual funds. These funds are less volatile than equity, making them a safer option for capital preservation.

Why debt funds? They help in protecting your capital and reducing the risk exposure from your overall portfolio. They offer stable, but lower returns compared to equity funds.

How much? From your Rs. 5,000, allocate Rs. 1,500 towards debt mutual funds. This gives you a good balance between risk and safety.

C. Systematic Investment Plan (SIP)
SIP is the best way to invest in mutual funds. It allows you to invest a fixed amount regularly, which reduces the impact of market volatility.

Why SIP? With SIPs, you benefit from rupee-cost averaging, which means you buy more units when markets are low and fewer when they are high. This evens out market fluctuations over the long run.

How to start? You can begin your SIP with your chosen mutual fund through a trustworthy Certified Financial Planner. The benefit of regular funds through a CFP is you get the ongoing professional guidance and advice needed to make the right choices.

5. Insurance: Ensuring Protection Alongside Investments
While investments are crucial for wealth creation, insurance is essential for protection. At this stage, it’s important to ensure you have adequate coverage.

A. Life Insurance (Term Plan)
Why? A pure term plan offers a significant life cover at a very low cost. This is crucial if you have dependents or financial responsibilities.

How much? Ideally, your life cover should be 10-15 times your annual income. If you earn Rs. 5 lakh a year, you should aim for a Rs. 50-75 lakh term plan.

B. Health Insurance
Even if you’re covered under a company policy, having your own health insurance is important.

Why? Medical costs are rising, and it’s important to have a policy that covers you even after retirement or if you change jobs.

How much? A minimum health insurance cover of Rs. 10-15 lakh is recommended, which can be increased as your age and responsibilities grow.

6. Retirement Planning
Though retirement may seem distant, it’s essential to start planning now. The earlier you start, the more comfortable your retirement years will be.

How to start? If you allocate part of your Rs. 5,000 towards equity and debt mutual funds, this will automatically form part of your retirement corpus.

Why equity for retirement? Equity provides higher returns over the long term, which is crucial for building a retirement fund.

Why debt? Debt provides stability and reduces the risk as you near retirement age.

7. Reviewing and Adjusting Your Investments
Once you start your investment journey, it’s important to review your portfolio periodically. You should check your investments every 6-12 months to ensure they are aligned with your goals.

Why review? Markets change, personal circumstances evolve, and you may need to adjust your portfolio to match these changes.

How? A Certified Financial Planner can guide you in making these adjustments. Regular funds provide the added advantage of professional fund management and ongoing advice.

8. Regular Funds vs. Direct Funds: Why Choose Regular?
You might have heard about direct mutual funds. These funds allow you to invest directly with the fund house, bypassing any intermediary. However, they have their disadvantages.

Disadvantages of direct funds: Direct funds don’t offer ongoing professional advice. You’re left to manage your portfolio yourself, which can be overwhelming for many. Investing through a Certified Financial Planner ensures your portfolio is actively managed with professional oversight.

Benefits of regular funds: You get expert advice, portfolio review, and regular updates. While there is a small fee involved, the benefits far outweigh the cost in terms of professional management and support.

9. Avoid Common Pitfalls
When starting your investment journey, there are some common mistakes to avoid:

Not starting early enough: You’ve already taken a step by starting at 41, but the earlier you start, the better.

Chasing high returns: It’s easy to get lured by funds that promise high returns, but these are often risky. Stick to a balanced portfolio.

Neglecting insurance: Investments are important, but so is protection. Make sure you have adequate insurance coverage before diving deep into investments.

Finally: Stay Committed and Keep Learning
Starting your investment journey at 41 is a great step. Rs. 5,000 a month may seem small, but it can grow substantially with time and discipline. The key is to stay committed, review your portfolio regularly, and make informed decisions with the help of a Certified Financial Planner.

Be patient: Wealth creation takes time, and you’ll see the fruits of your investments over the long term.

Keep learning: Stay informed about market trends and new investment opportunities. Knowledge will help you make better decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8511 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - May 17, 2024Hindi
Listen
Money
Dear All, I am 36 working in a pvt Bank married and have a kid 3 years old, don't have any investment and savings due to family commitments.Now I want to start investing pls help/guide how and what to start with?
Ans: Starting your investment journey at 36 is a responsible and positive step towards securing your financial future. Here’s a structured approach to help you get started, considering your current situation and future goals.

Assess Your Financial Situation
Before investing, it’s crucial to understand your current financial standing. Calculate your monthly income, expenses, and any existing debts. This will give you a clear picture of how much you can invest monthly.

Setting Financial Goals
Set clear, achievable financial goals. These might include:

Emergency Fund: Cover 6-12 months of expenses.
Child’s Education: Plan for your 3-year-old’s future education costs.
Retirement: Secure your financial independence post-retirement.
Other Goals: House purchase, vacations, etc.
Building an Emergency Fund
Before starting any investment, create an emergency fund. This fund should cover at least 6 months of living expenses. It acts as a financial buffer against unexpected events like medical emergencies or job loss.

Life and Health Insurance
Ensure you have adequate life and health insurance. These insurances protect your family financially in case of any unforeseen events. A term insurance plan is advisable for life cover, and a family floater health insurance plan for medical emergencies.

Starting with Systematic Investment Plan (SIP)
SIPs are a disciplined way to invest in mutual funds. They allow you to invest a fixed amount regularly, helping you average out the cost of purchasing mutual fund units over time.

Suggested SIP Allocation
Given your goals and starting point, here’s a suggested allocation:

Equity Mutual Funds:

Suitable for long-term goals like retirement and child’s education.
Allocate about 70% of your investment here for higher returns.
Debt Mutual Funds:

Suitable for short-term goals and stability.
Allocate about 20% to balance risk.
Hybrid/Balanced Funds:

A mix of equity and debt.
Allocate about 10% for moderate risk and returns.
Suggested Fund Allocation
Large-Cap Fund: Focus on stability and consistent returns.

Monthly SIP: 3,000 rupees
Mid-Cap and Flexi-Cap Funds: Offer higher growth potential.

Monthly SIP: 4,000 rupees
Debt Funds: Provide stability and lower risk.

Monthly SIP: 2,000 rupees
Balanced/Hybrid Funds: Mix of equity and debt.

Monthly SIP: 1,000 rupees
Steps to Start Investing
Open an Investment Account:

Choose a reputable mutual fund provider or an online investment platform.
Start with SIPs:

Set up SIPs in the recommended funds.
Automate monthly investments to ensure consistency.
Monitor and Review:

Regularly review your portfolio’s performance.
Make adjustments based on your financial goals and market conditions.
Importance of Professional Guidance
Consider consulting a Certified Financial Planner (CFP). A CFP can provide personalized advice tailored to your financial situation and goals. They can help you choose the right funds, ensure your investments align with your goals, and make necessary adjustments.

Avoiding Common Pitfalls
Avoid High-Risk Investments: Don’t invest in high-risk assets without understanding them.
Stay Disciplined: Stick to your investment plan and avoid impulsive decisions.
Don’t Overlook Insurance: Ensure you have adequate life and health insurance.
Conclusion
Starting investments at 36 is a wise decision for securing your family’s future. By building an emergency fund, getting proper insurance, and investing systematically through SIPs, you can achieve your financial goals. Regular reviews and professional guidance will keep you on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |5052 Answers  |Ask -

Career Counsellor - Answered on May 24, 2025

Nayagam P

Nayagam P P  |5052 Answers  |Ask -

Career Counsellor - Answered on May 24, 2025

Asked by Anonymous - May 24, 2025
Career
Helo sir my self Anuj Prajapati , I have secured 95.13%ile and 73k crl and 22k obc rank also i am a up homestate candidate, sir please suggest me some college's from where i can upgrade myself in tech field.
Ans: Anuj,
Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced Results – A Step-by-Step Guide

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Have some other options also as back-ups instead of relying only on JEE/JoSAA.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admission and a bright future!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |5052 Answers  |Ask -

Career Counsellor - Answered on May 24, 2025

Asked by Anonymous - May 24, 2025
Career
I got Sir I got admission in VIT Vellore ,Rank 142059,JEE Mains 98.79% Please given Your advice Sir
Ans: If your JEE Main Rank itself is 98.79 percentile, how VITEEE's Rank is very poor (1,42,059)? Any specific reason or typing error? Anyway, try to get admission through JoSAA Counselling.
Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced Results – A Step-by-Step Guide

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Have some other options also as back-ups instead of relying only on JEE/JoSAA.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admission and a bright future!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...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