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Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 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
Sowmya Question by Sowmya on Jan 24, 2024Hindi
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Hi Sir . I am a 41-year-old woman with a monthly income of 1.4 Lakh. I have a 14-year-old son. I haven't invested in mutual fund investments before and seek your guidance on how much to invest and in which mutual funds. My financial goals are as follows: Accumulate 6 crores before retirement (in the next 17 years). Save 1 crore for my son's higher education in the next 7 years. Set aside 50 lakhs for my son's marriage in the next 12 years. My current investments include: PPF - 1.5 Lakhs per annum for the last 5 years. VPF - 1.6 Lakhs per annum for the last 2 years. NPS - 10,000 per month for the last 1 year. I would greatly appreciate your advice on how to structure my mutual fund investments to achieve these goals Thank you

Ans: You've set commendable financial goals, laying a strong foundation for your future and your son's. Given your monthly income and current investments, it's essential to strategize wisely for optimal growth.

Considering your long-term goals, a diversified approach is crucial. Start with an equity-heavy portfolio for the long-term goals, aiming for higher returns, while keeping a balanced approach for the medium-term goals like your son's education.

For your retirement corpus of 6 crores in 17 years, an equity-heavy allocation is advisable, as equities historically offer better returns over the long run. For your son's education and marriage, consider a balanced allocation between equity and debt to balance risk and return.

Remember, investing is a journey, not a destination. Regularly review and adjust your portfolio based on life changes, market conditions, and financial goals. A financial advisor can provide personalized guidance, ensuring you stay on the right path towards achieving your dreams. Happy investing!
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  |5181 Answers  |Ask -

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

Asked by Anonymous - Apr 24, 2024Hindi
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Hi Sir . I am a 34-year-old man with a monthly income of 1.4 Lakh. I have a 1-year-old son. I haven't invested in mutual fund investments before and seek your guidance on how much to invest and in which mutual funds. My financial goals are as follows: Accumulate atleast 6 crores before retirement (in the next 20 years). Save atleast 1 crore for my son's higher education in the next 15 years. Set aside atleast 50 lakhs for my son's marriage in the next 20-25 years. My current investments include: PPF - 1.5 Lakhs per annum for the last 5 years. NPS - 50000 per annum for the last 3 year. ULIP - 1.2 Lakh per annum for last 1 year One SBI scheme - 1.2 Lakhs per annum for last 3 years My wife is also working with monthly income of 1.4 Lakhs. I would greatly appreciate your advice on how to structure my mutual fund investments to achieve these goals. Thank You.
Ans: Given your financial goals and current investments, here's a suggested approach to structure your mutual fund investments:

Retirement Corpus (6 Crores in 20 years):
Start SIPs in diversified equity mutual funds with a focus on long-term growth. Allocate a significant portion of your investments towards equity funds to harness their wealth-building potential over the long term. Consider a mix of large-cap, mid-cap, and multi-cap funds to diversify across market segments and manage risk effectively. Review and increase your SIP amounts periodically, considering your income growth and inflation.
Son's Higher Education (1 Crore in 15 years):
Allocate a portion of your mutual fund investments specifically towards your son's education goal. Since the timeframe is relatively shorter, consider a balanced approach with a mix of equity and debt funds to balance growth potential with capital preservation. Gradually shift towards debt-oriented funds as the goal approaches to safeguard against market volatility and ensure capital protection.
Son's Marriage (50 Lakhs in 20-25 years):
Similar to the education goal, allocate a portion of your investments towards your son's marriage goal. Since the timeframe is longer, you can afford a more aggressive approach with a higher allocation towards equity funds. As the goal approaches, gradually shift towards more conservative investments to protect the accumulated corpus.
Review and Rebalance:
Regularly review your mutual fund investments and rebalance your portfolio as needed to ensure alignment with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner to periodically reassess your goals, investment strategy, and progress towards achieving them.
Remember, investing is a long-term commitment, and staying disciplined, diversified, and focused on your goals is key to achieving financial success.

..Read more

Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 25, 2024

Asked by Anonymous - Apr 25, 2024Hindi
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Hello Sir, I am 42 years old women. Earning 1 LPM in hand. I Have 15 years old son. I never invested in mutual funds. Requesting your advice to start investing in mutual funds, like how much in which mutual funds. so I can achieve below goals 5 cr before retirement( in next 16 years) 1 cr for my son higher education by another 7 years. 1 Cr for my son marriage in another 10 years Current investments are: 1. PPF - 1.5 LPA from last 5 years ( planning to reduce considering the interest rate ) 2. VPF - 22k per month from last 2 year 3. PF- 12k per month ( and additional 12k from Employer) ( I have total around 20 L in PF now ) 4. NPS - 10k per month from last 1 year Kindly please help me with your answers considering no other income stream.
Ans: It's commendable that you're looking to start investing in mutual funds to achieve your financial goals. With a clear vision and a steady income, you're well-positioned to embark on this investment journey.

Given your goals and current investments, here's a suggested approach:

Retirement Corpus (5 Cr in 16 years): Given the time horizon, you can consider investing in a combination of equity mutual funds for higher returns potential and debt mutual funds for stability. An SIP in diversified equity funds and balanced funds could be a good starting point.
Son's Higher Education (1 Cr in 7 years): To achieve this goal, you might consider investing in a mix of equity and debt funds, leaning more towards equity for higher growth potential.
Son's Marriage (1 Cr in 10 years): Similar to the education goal, a blend of equity and debt funds can be considered. You might also explore targeted funds designed for specific financial goals.
Given your current investments in PPF, VPF, PF, and NPS, you have a stable foundation. However, considering the reducing interest rates and your goals' timelines, diversifying into mutual funds could potentially offer higher returns.

A Certified Financial Planner can provide personalized advice tailored to your needs, risk tolerance, and investment horizon. They can help you select suitable mutual fund categories, recommend investment amounts, and guide you on portfolio diversification.

Remember, investing is a long-term commitment, and it's essential to stay invested and review your portfolio periodically. Best wishes on your investment journey towards achieving your financial goals!

..Read more

Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 25, 2024

Asked by Anonymous - Apr 25, 2024Hindi
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Hi Sir . I am a 34-year-old man with a monthly income of 1.4 Lakh. I have a 1-year-old son. I haven't invested in mutual fund investments before and seek your guidance on how much to invest and in which mutual funds. My financial goals are as follows: Accumulate atleast 6 crores before retirement (in the next 20 years). Save atleast 1-2 crore for my son's higher education in the next 20 years. Set aside atleast 50 lakhs for my son's marriage in the next 25 years. My current investments include: PPF - 1.5 Lakhs per annum for the last 5 years. NPS - 50000 per annum for the last 3 year. ULIP - 1.2 Lakh per annum for last 1 year One SBI scheme - 1.2 Lakhs per annum for last 3 years My wife is also working with monthly income of 1.4 Lakhs. I would greatly appreciate your advice on how to structure my mutual fund investments to achieve these goals. Thank You.
Ans: It's commendable that you're planning ahead for your family's future. With clear financial goals and a steady income, you're already on the right path. Given your aspirations, mutual funds can play a pivotal role in achieving these milestones.

For your retirement goal of accumulating 6 crores in 20 years, systematic and disciplined investing will be key. Similarly, for your son's education and marriage funds, a structured approach can make a significant difference.

Considering your current investments in PPF, NPS, ULIP, and other schemes, mutual funds can complement these by offering diversification and potential growth opportunities. A Certified Financial Planner can help you tailor an investment strategy aligned with your goals, risk tolerance, and time horizon.

Remember, investing is a journey, not a race. It requires patience, diligence, and periodic review. By investing wisely and staying committed to your goals, you can pave the way for a secure and prosperous future for your family. Best wishes on your financial journey!

..Read more

Ramalingam

Ramalingam Kalirajan  |5181 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 13, 2024Hindi
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Hi. I'm 30years old with monthly salary of 60k. Having said, I have savings of 5L in hand and not had any investment so far in mutual fund. Having 2 child to take care with their education after 20 years. Need of advice on where to start in mutual fund. My risk appetite is moderate to high but don't know which fund to choose for long term investment. As well as I need of assured corpus of Rs.1 crore after 12 years to support my investment horizon along with my salary for rest of 8 years as I don't think my salary alone will be suffice to meet the investment journey. Also after 12 years need of an advice on how to get monthly income out of some portion of 1crore to manage family with it and save all my salary to mutual fund. I also want to know what will be the average return I will be getting based on your suggestion with all plannings as I said above after 20years
Ans: Your commitment to securing your family's future and achieving financial stability is commendable. Let's outline a strategic mutual fund investment plan tailored to your goals, risk appetite, and investment horizon.

Assessing Your Financial Goals and Risk Profile
At 30, with a moderate to high risk appetite, you're well-positioned to embark on a long-term investment journey. Your primary objectives include building a substantial corpus for your children's education in 20 years and securing a corpus of ?1 crore in 12 years for additional financial support.

Structuring Your Mutual Fund Portfolio
Given your investment horizon and risk tolerance, a diversified portfolio of equity and debt mutual funds is recommended. Equity funds offer growth potential, while debt funds provide stability and income generation. Here's a suggested allocation:

Equity Funds: Allocate a significant portion of your investment, considering your moderate to high-risk appetite. Choose a mix of large-cap, mid-cap, and small-cap funds for diversification and potential returns.

Debt Funds: Allocate a portion of your portfolio to debt funds to mitigate risk and generate stable returns. Opt for a combination of short-term, medium-term, and long-term debt funds based on your risk preference.

Planning for Future Income Streams
After 12 years, when you aim to secure a corpus of ?1 crore, consider investing a portion of this amount in a combination of dividend-paying mutual funds and systematic withdrawal plans (SWPs). This strategy will provide you with a regular monthly income stream while preserving the principal amount for long-term growth.

Estimating Average Returns
While it's challenging to predict exact returns, a well-diversified mutual fund portfolio targeting a moderate to high-risk profile can potentially generate average returns ranging from 10% to 12% annually over the long term. However, returns may vary depending on market conditions and fund performance.

Emphasizing Discipline and Review
Consistency and discipline are key to achieving your financial goals. Review your portfolio regularly, monitor fund performance, and make adjustments as needed to stay aligned with your objectives. Consider consulting with a Certified Financial Planner to fine-tune your strategy and navigate market fluctuations effectively.

Conclusion
In conclusion, a strategic mutual fund investment plan tailored to your financial goals, risk profile, and investment horizon can pave the way for long-term wealth creation and financial security. By diversifying your portfolio, planning for future income streams, and maintaining discipline, you can work towards achieving your objectives and securing your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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