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Kirtan A Shah |77 Answers |Ask -Follow

MF Expert, Financial Planner - Answered on Sep 02, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more

Question by Vivek on Sep 01, 2023Hindi

Money

Hi I am 42 year OLD ,I Have capital of 30 Lac, Need to invest in MF Purpose is- Grow the Money for Five Year Horizon , Then need to secure this amount & Have monthly Income . So How much I can get Monthly income with this & For How much Year

Ans: - Assuming 12% returns, your 30 lakhs can become ~52 lakhs in 5 years
- You should invest this in Debt funds & withdraw not more than 0.5% a month. If the fund earns more than 6% (0.5% * 12), you can continue to receive it till infinity as you are withdrawing less vs the gains in the fund

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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Question by Salma - Dec 15, 2023Hindi

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Hi sir, I am 38 years old looking to invest 5k per month in MF for 50 lakhs. Please guide as I have zero idea about this. I need to start some investment

Ans: It's great you're considering investing in mutual funds (MFs)! Here's a roadmap to get you started with your monthly SIP (Systematic Investment Plan) of ?5,000 towards a ?50 lakh goal:

Understand Risk Tolerance:

MFs come with varying risk levels. Answer this: are you comfortable with some short-term fluctuations for potentially higher returns, or do you prefer guaranteed returns with lower gains?
Choose Investment Tenure:

Aiming for ?50 lakh, how long are you willing to invest? A longer timeframe allows for market ups and downs to even out, potentially leading to better returns.
Pick Fund Category:

Based on your risk tolerance and tenure, consider:
Debt Funds (low risk): Invest in bonds, offering stable returns but potentially lower than equity funds.
Balanced Funds (moderate risk): A mix of stocks and bonds, balancing risk and return potential.
Equity Funds (high risk, high reward): Invest in stocks, offering potentially high returns but with market fluctuations.
Select SIPs:

Choose 1-2 SIPs across different fund categories based on your risk profile.

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Question by Prateek - Mar 24, 2024Hindi

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Hello Ulhas, I am 33 years and I want to start investing in MF with amount 25k per month till next 10-15 years so that I can get a good corpus for my child's education and also retirement . I am also planning to increase the amount each year for this . Can you please help in which type of funds should I invest ( also the company if possible) and how much amount should I increase each year.

Ans: Hello Prateek & thanks for writing to me. As your goal is long term, you can consider investing in equity schemes for around 10 to 12 years, stop your SIP's in equity funds & begin SIP's in balanced advantage funds & multi asset funds for the remainder 3 to 4 years.

You can invest in a mix of

1-Flexicap Funds: 50% of your investible corpus.
2-Multicap Funds:25% of your investible corpus.
3-Midcap Funds: 12.5% of your investible corpus.
4-Smallcap Funds:12.5% of your investible corpus.

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Asked by Anonymous - Apr 29, 2024Hindi

Career

Hello. I am a 35 year old widow. I have completed B.E and worked in TCS for 2 yrs. After marriage I had a ten long yrs of career break. Due to unexpected demise of my husband, I am strangled with my 6 yr old daughter. I don't know how to look for a job. I am not interested in software jobs. Please guide me. How to proceed. I want to live a respectable life.

Ans: Hi!!

It is very sad that you lost your life partner at such a young age. I know it is going to be tough for sometime. What I do know is that, because you are an Engineer, you have work experience with TCS, it is not going to be as tough as it seems and it will take sometime but you will be earning and living a respectable life!! Take informed decisions and start taking one step at a time towards your goal of a respectable life.

I am a little troubled that you said, "I am strangled with a 6 yr old daughter". You gave birth to her, she is your responsibility, she is totally dependent on you. You do have your daughter as your mate on this journey of life. Children are always a blessing, don't believe anyone who says otherwise. Cherish her and love her. Let the bond between the mother and daughter grow to be beautiful one. After the death of a spouse, people around have this tendency to say things that has an effect on you, just trust yourself, you are 35 yrs old, believe in yourself. You are mother and motherhood gives you a lot of strength, tap into it and move ahead in life for the sake of the little one.

Now to look into building your career, earning money and living a respectable life, here are some options to look into..

1. check with TCS if you can go back, lots of these big companies love it if their previous employees come back to work with them. Look around for a senior, a friend who can suggest the courses you can do now, to get back into the job market
2. you said you don't want to get into software, how about HR or teaching?
3. take a hard look at all your strengths and weaknesses, what you would like to do, get skilled in that area and start looking for the jobs in that area
4. create a goal card, let this always be in front of you. Have goals for every area of your life

Take care of your mental, emotional and physical health!! Look for people you uplift you and give you strength. Stay away from negative people.

Loads of prayers and blessings to both you and your daughter!!

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Asked by Anonymous - May 05, 2024Hindi

Money

Hi, I currently earn 42k per month at the age of 25, no loans, I have 2 Lacs in mutual fund and around 80k in stocks. I also have a term insurance and health insurance is from company policy. I stay at parents house so no rent either, just 9-10k per month on an average on electric bill+ grocery that I pay. I invest 12k per month in stocks and mutual fund altogether. Am I having a right approach or should i make any emergency fund? And how and where to keep the money? I'm planning to get a health insurance for my mother and I next year.

Ans: It's commendable that you're already prioritizing investments at such a young age and have taken steps to secure insurance coverage. Your approach demonstrates financial responsibility and foresight.

Given your current financial situation, establishing an emergency fund is indeed a prudent step. An emergency fund acts as a financial safety net, providing liquidity to cover unexpected expenses like medical emergencies or job loss without disrupting your long-term investments.

As a Certified Financial Planner, I recommend setting aside at least three to six months' worth of living expenses in your emergency fund. Since your average monthly expenses are around 9-10k, aim to accumulate around 30k to 60k in your emergency fund.

You can keep your emergency fund in a high-yield savings account or a liquid mutual fund for easy accessibility and liquidity. These options offer stability and ensure your funds are readily available when needed.

Regarding health insurance for you and your mother, it's a wise decision to enhance your coverage. Evaluate various health insurance plans to find one that meets your specific needs and offers comprehensive coverage for medical expenses.

Continue with your disciplined approach towards investing in stocks and mutual funds. Allocating a portion of your monthly income towards investments ensures wealth accumulation over time. Regularly review your investment portfolio and make adjustments as needed to align with your financial goals and risk tolerance.

Overall, you're on the right track with your financial planning and investments. Keep up the good work and remain proactive in managing your finances for a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Asked by Anonymous - May 05, 2024Hindi

Money

Hi sir, I'm 24 yrs old just started working in new domain which is not relevant to my core studies (i studied msc in zoology ) but now working in as network engineer (bcos its one of my passion), wo i followed my heart voice.. For mow i started earning 15k as fresher , and i started investing in MF for about 1 yrs and my sip amount per month is 4k and plus lumpsum addition amount result in around 1 lakh with profit of 9 percent of my portfolio .. it's growing slow and steadily but i want to increase my savings and invest . Kindly advice on this your thoughts .. My holdings all are direct funds Parag flexi Icici nifty 50 index Icici bluechip Nippon small I don't want to diversify more that this in MF so i stop only with 4 mfs .. Thanking you for your advice

Ans: Starting your career in a different domain from your academic background is a brave move, showcasing your willingness to follow your passion. It's impressive how you've taken charge of your finances despite starting with a modest income. Keep up the good work!

Increasing your savings and investments is a wise decision, especially at a young age. Gradually raising your SIP amount as your income grows is a prudent step towards building wealth over time. Consistency is key in investing, and your commitment to regular investments will pay off in the long run.

Direct funds offer several advantages over regular funds, including lower expense ratios, potentially boosting your returns over time. However, managing direct funds requires expertise and time commitment. Considering your busy schedule, investing through a Certified Financial Planner (CFP) with expertise in mutual funds can be advantageous. They can provide personalized guidance, monitor your portfolio, and make timely adjustments as needed, ensuring optimal returns while you focus on your career.

While mutual funds are a solid starting point, exploring other investment avenues gradually can further diversify your portfolio and optimize returns. Consider learning about stocks, bonds, or alternative investments to broaden your investment horizon.

Continuous education about financial concepts and investment strategies will empower you to make informed decisions and navigate the complex world of finance effectively. Keep seeking knowledge and stay open to new opportunities.

With dedication, discipline, and a proactive approach, you're well on your way to achieving your financial goals. Keep believing in yourself and your abilities, and remember that every small step you take today contributes to a brighter financial future tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Question by Saddam - May 03, 2024Hindi

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I need to create corpus of 5 crores in 10 years. im currently investigating of 46500 past one year. i have following mutual fund in my portfolio Hdfc sensex index 20k pgim midcap 3k motilal midcap index 3k sbi next 50 index 1k motilal micro index 46 icici prudential technology 1k quant small cap 7k parakpari flexi cap 5k axis small 2k. im private employee and earning of 140000 per month. so please provide suitable answer which created 5cr in 10 years also i have lic of 50k per year,ppf of 50k per year and nps 5k every month. my current age is 34

Ans: Creating a corpus of 5 crores in 10 years is an ambitious goal, but with careful planning and strategic investments, it's achievable. Your current investment portfolio and savings habits provide a solid foundation for reaching this milestone.

Given your age of 34 and the 10-year time horizon, we'll need to focus on a growth-oriented investment strategy while ensuring diversification and risk management.

Let's start by optimizing your mutual fund portfolio. While you have a diversified mix of funds, we may need to make some adjustments to align with your goal. Consider increasing allocations to high-growth potential funds like mid-cap and small-cap funds, which historically have outperformed broader market indices.

Regularly review your portfolio to monitor performance and make necessary adjustments based on market conditions and your evolving financial goals.

Additionally, continue your disciplined approach towards savings. Your LIC, PPF, and NPS contributions provide stability and long-term growth opportunities. Ensure you maximize contributions to these instruments within permissible limits to harness their full potential for wealth accumulation.

Remember to stay patient and committed to your financial plan. Building a significant corpus requires time and consistency. As a Certified Financial Planner, I'm here to guide you every step of the way and help you navigate through market fluctuations and uncertainties.

With determination and strategic financial planning, you can achieve your goal of creating a 5 crore corpus in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Lucas - May 05, 2024Hindi

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Hi invested 1 lakh amount in Nippon India Small cap, what corpus can be expected after 30 years?

Ans: It's impossible to predict the exact corpus you'll have after 30 years with Nippon India Small Cap Fund (or any mutual fund) due to several factors:

Market Fluctuations: Stock markets are inherently volatile. Past performance doesn't guarantee future returns.

Fund Performance: The fund's future performance significantly impacts your corpus.

Here's what we can do instead:

Historical Performance: Nippon India Small Cap Fund has historically performed well. However, past performance doesn't guarantee future results.

SIP Calculator: Use Nippon India Mutual Fund's SIP calculator (https://mf.nipponindiaim.com/knowledge-center/tools/sip-calculator) to estimate potential returns based on different investment periods and assumed rates of return. Remember, these are just estimates.

Seeking Professional Advice: Consulting a Certified Financial Planner (CFP) can be beneficial. They can consider your risk tolerance, investment goals, and overall portfolio to suggest a suitable investment strategy.

Important to Remember: Focus on long-term wealth creation through disciplined investing. Stay diversified and avoid making investment decisions based solely on predicted returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 03, 2024Hindi

Money

I want to take Health Insurance for my mom and dad , But not sure if they contain pre existing disease or not. As My Mon often get sick. And I if take Health Insurance Blindly I might need to be waiting list or company can reject claim stating you didn't mention about pre diseases. Please Guide what steps I need to take

Ans: It's commendable that you're considering health insurance for your parents. It's a vital step towards securing their well-being.

Understanding your parents' health condition is crucial before purchasing insurance. Consider scheduling a comprehensive health check-up for them. This will help identify any pre-existing conditions they may have.

If pre-existing conditions are found, don't worry. Many insurance policies cover pre-existing illnesses after a waiting period. Disclose all relevant information to the insurer transparently to avoid claim rejections later.

Opting for a family floater health insurance plan can be beneficial. It covers the entire family under a single policy, including pre-existing conditions after the waiting period.

Compare different health insurance policies, considering factors like coverage, premium, waiting period, and claim settlement ratio. Choose a plan that suits your parents' healthcare needs and your budget.

Regularly review and renew the health insurance policy to ensure continuous coverage. As a Certified Financial Planner, I'm here to guide you through this process and address any concerns you may have.

Remember, investing in your parents' health is an investment in their happiness and well-being.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Question by Ajay - May 02, 2024Hindi

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Hi, I liked a home that cost 1.1 crore. I don't have a down payment hence I decide to take this in joint name with my friend, who had 40 lakh rupees. Will bank permit home loan of 70 lakh to me to take this home in joint ownership with friend.

Ans: Taking a joint home loan with your friend can be a viable option to fulfill your dream of owning the desired home. Banks typically consider the combined income and creditworthiness of all co-applicants when approving a joint home loan.

In your case, since your friend has 40 lakh rupees for the down payment, you can apply for a home loan of 70 lakh rupees jointly. However, it's crucial to note that each bank has its own lending criteria and may evaluate the loan application based on factors such as income stability, credit history, and debt-to-income ratio.

Before proceeding, it's advisable to discuss the terms of the joint ownership with your friend and seek legal advice to draft a co-ownership agreement outlining the responsibilities, rights, and obligations of each party to avoid any potential conflicts in the future.

Additionally, consult with multiple banks or financial institutions to compare loan offers and choose the one that best suits your requirements in terms of interest rates, tenure, and repayment options.

By leveraging the combined financial strength of both applicants, you can increase the chances of loan approval and make your dream of homeownership a reality.

Best Regards,

K. Ramalingam, MBA, CFP,

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www.holisticinvestment.in

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Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 01, 2024Hindi

Money

Sir, I am 43 years old, wish to invest Rs. 10,000/- in Some good Mid cap fund for 15 years horizon. Is it safe to go ahead with Quant mf or some other fund house i should think off. Please advise. I am already investing via SIP with Canara robeco Large cap 5000/-, Axis Large cap fund 5000/-, Idbi Top 100-2000/-, Axis mid cap fund.-3000/-Mirae mid cap fund 5000, mirae mid and large cap 5000/-and Nippon small cap fund 7500/- since last 5 years. My horizon is 15 years from now. My expectations is to get minimum approx 4 cr at the age of 60. Kindly advise some changes required in portfolio to achieve my goals.

Ans: Given your current investment portfolio and your goal of accumulating approximately 4 crores in 15 years, it's essential to ensure that your investment choices align with your objectives and risk tolerance.

Mid-cap funds can offer attractive growth opportunities over the long term, but they also come with higher volatility compared to large-cap funds. Since you already have exposure to mid-cap funds through Axis Mid Cap Fund, adding another mid-cap fund like Quant MF may increase concentration risk in your portfolio.

Instead, consider diversifying into other asset classes or fund categories to spread risk and enhance growth potential. You may explore adding a balanced fund or a multi-cap fund to your portfolio to achieve better diversification across market segments.

Furthermore, regularly reviewing your portfolio with a Certified Financial Planner can help assess its performance, rebalance as needed, and make necessary adjustments to stay on track towards your retirement goal.

Your commitment to systematic investing is commendable. By staying disciplined and making informed decisions, you're laying a strong foundation for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1960 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Sri - May 01, 2024Hindi

Money

Hi, I am aged 34, have been accumulated 2.28 Cr via investing in small cap mutual funds (Nippon(since 2017), dsp(since 2016), hsbc(l&t)(since 2016), quant(since 2023), I don't have any loans, had two kids aged 4.5 yrs and 2 yrs, I have only one specific goal in my mind, to have a peaceful retirement. Taking into cognizance of inflation can you suggest any course correction,if any, I need to make, being a employee of statutory body, income wise it's extremely stable till I turn 60.

Ans: Given your prudent investment approach and stable income, you're well on track for a peaceful retirement. With a portfolio predominantly in small-cap mutual funds, you've embraced growth potential. However, let's address the elephant in the room: inflation.

Inflation has a knack for eroding purchasing power over time. To safeguard your retirement dreams, we'll need to fortify your investment strategy. While small-cap funds offer robust growth prospects, they can also be volatile, especially in the face of economic downturns.

Diversification is our ally here. We can explore a blend of large-cap, mid-cap, and debt funds to balance risk and return. Large-cap funds offer stability, while mid-cap funds provide growth potential with less volatility. Debt funds act as a cushion during market turbulence, ensuring a smoother ride towards retirement.

Moreover, consider revisiting your asset allocation periodically. As you approach retirement, gradually shift towards more conservative investments to shield your corpus from market fluctuations.

Regular reviews with a Certified Financial Planner can fine-tune your strategy and adapt it to changing market dynamics. They can offer personalized guidance tailored to your financial goals and risk tolerance, ensuring a smooth sail towards retirement.

Your disciplined approach to savings and investments is commendable. Keep nurturing your financial acumen, and together, we'll pave the path for a serene retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1960 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 01, 2024Hindi

Money

I have 200000 how invest for 10 years for retirement plan

Ans: It's wonderful that you're planning for your retirement. With Rs. 2,00,000 for a 10-year horizon, strategic allocation is vital.

Considering your timeframe, you can afford a slightly more aggressive approach, focusing on equity-oriented investments. However, it's crucial to balance risk with potential returns.

Diversification is key. Allocating funds across different asset classes like equity, debt, and possibly gold can help mitigate risks associated with market volatility.

As a Certified Financial Planner, I recommend a systematic investment approach, perhaps through SIPs, to benefit from rupee cost averaging and compounding over time.

Avoiding direct investment routes and opting for regular funds through a Certified Financial Planner can provide professional guidance and mitigate risks associated with DIY investing.

While actively managed funds may have slightly higher expenses compared to index funds, they offer the potential for better returns through active portfolio management and selection of high-quality securities.

Remember to review your portfolio periodically to ensure it aligns with your evolving financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

See more questions »

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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