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Ramalingam

Ramalingam Kalirajan  |8511 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 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
Smitha Question by Smitha on May 02, 2024Hindi
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Hi I am 43years, I want 35 lakhs after 5years for daughters marriage, and 7years i need 20lakhs for children education, and after 12years i need 1cr plus 1lakh per month as pension.. So how to start investment and in which funds

Ans: To achieve your financial goals, a systematic and diversified investment approach is essential. Let's outline a strategy to meet each milestone effectively.

Investing for Daughter's Marriage (5 years):
Opt for low to moderate risk investment options due to the short time horizon.
Consider debt mutual funds, fixed deposits, or short-term debt instruments for stability and capital preservation.
Saving for Children's Education (7 years):
Balance risk and return with a mix of equity and debt investments.
Invest in diversified equity mutual funds for potential growth and debt funds for stability.
Utilize Sukanya Samriddhi Yojana or education-specific investment plans for tax benefits and focused savings.
Planning for Retirement (12 years):
Emphasize long-term growth potential with a predominantly equity-based portfolio.
Allocate investments across large-cap, mid-cap, and diversified equity funds for diversification and risk management.
Explore options like National Pension System (NPS) or Voluntary Provident Fund (VPF) for additional retirement savings.
Selecting Suitable Funds:
Research and choose mutual funds with consistent track records, experienced fund managers, and adherence to investment objectives.
Consult with a Certified Financial Planner for personalized advice and portfolio optimization.
Regularly review and rebalance your portfolio to align with changing goals and market conditions.
Getting Started:
Begin investing systematically and regularly to benefit from rupee-cost averaging and compounding.
Set up SIPs (Systematic Investment Plans) in selected mutual funds to automate your investments and maintain discipline.
Monitor your portfolio's performance and make adjustments as needed to stay on track towards your financial goals.
As you embark on this investment journey, remember to stay patient, disciplined, and focused on your long-term objectives. With prudent planning and consistent efforts, you can build a secure financial future for yourself and your family.

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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Ramalingam

Ramalingam Kalirajan  |8511 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 08, 2024Hindi
Money
Hi Sir, I am 55 years old and can invest Rs.10000 a month. I need Rs 50 lakhs after 4 years for my daughter marriage which is inevitable. How and where to invest to fulfill my required amount.
Ans: Let's delve into your investment strategy to achieve your goal of Rs. 50 lakhs in four years. Your dedication to securing your daughter's future is commendable, and I'll guide you with a comprehensive plan. Here’s how you can approach this significant financial goal.

Understanding Your Financial Goals
It's crucial to understand the specific amount and timeline for your goal. You need Rs. 50 lakhs in four years for your daughter’s marriage. With Rs. 10,000 to invest monthly, we'll need a strategic plan to bridge any gaps.

Investing in Mutual Funds
Benefits of Mutual Funds
Mutual funds offer diversification and professional management. They can help achieve high returns if selected wisely. Opt for actively managed funds rather than index funds. Active funds, managed by experienced fund managers, can potentially outperform the market.

Selecting the Right Mutual Funds
Choose funds with a good track record over different market cycles. Look for funds with consistent performance and reputable fund managers. Investing in a mix of equity and debt funds can balance risk and reward.

Systematic Investment Plan (SIP)
A SIP allows you to invest a fixed amount monthly, which is ideal for your Rs. 10,000 monthly investment. This approach benefits from rupee cost averaging and compounding. Even in volatile markets, SIPs can smoothen out returns over time.

Exploring Debt Instruments
Benefits of Debt Instruments
Debt instruments like debt mutual funds, corporate bonds, or fixed deposits offer stability and lower risk. They ensure capital preservation, which is crucial given your four-year timeline.

Choosing the Right Debt Instruments
Select instruments with a high credit rating to ensure safety. Debt mutual funds with a short to medium duration are preferable. They provide better returns than traditional savings accounts without taking on excessive risk.

Balancing Equity and Debt
Asset Allocation
Asset allocation is vital for achieving your goal. Considering your time frame and risk tolerance, a balanced approach is recommended. A 60:40 ratio between equity and debt could be effective.

Adjusting Over Time
As you approach your goal, gradually shift more towards debt instruments. This transition reduces the risk of market volatility impacting your corpus closer to the target date.

Benefits of Active Management
Professional Fund Management
Actively managed funds bring the expertise of fund managers. These professionals make informed decisions based on market analysis. This can result in higher returns compared to passive funds.

Regular Fund Investments
Investing through a Mutual Fund Distributor (MFD) with Certified Financial Planner (CFP) credentials ensures you receive expert guidance. They help in selecting the right funds, rebalancing the portfolio, and maximizing returns.

Avoiding Common Pitfalls
Steer Clear of Direct Funds
Direct funds might seem cost-effective due to lower fees. However, they lack the expert guidance that comes with regular funds. Investing through an MFD with a CFP ensures better fund selection and management.

Disadvantages of Index Funds
Index funds merely replicate market indices. They lack the potential for outperforming the market. Actively managed funds, on the other hand, aim to beat the market, offering better growth prospects.

Importance of Regular Monitoring
Regular Portfolio Reviews
Monitoring your investments regularly is essential. It helps in making necessary adjustments based on market conditions. Regular reviews ensure your investments stay on track towards your goal.

Rebalancing the Portfolio
Rebalancing involves realigning the weightage of your portfolio components. This ensures your asset allocation remains in line with your risk tolerance and financial goals. It's crucial as market movements can skew your allocation over time.

Considering Tax Implications
Tax Efficiency
Tax efficiency is an important factor. Long-term capital gains (LTCG) from equity funds are taxed at 10% beyond Rs. 1 lakh. Debt funds held for more than three years qualify for LTCG benefits with indexation, making them tax-efficient.

Tax-Saving Instruments
Investing in tax-saving instruments like ELSS (Equity Linked Savings Scheme) can provide dual benefits. They offer potential for high returns along with tax deductions under Section 80C of the Income Tax Act.

Emergency Fund
Importance of an Emergency Fund
An emergency fund is crucial to handle unexpected expenses. It ensures you don’t have to dip into your investments prematurely. Ideally, maintain six months’ worth of expenses in a liquid fund or savings account.

Creating an Emergency Fund
Start building an emergency fund alongside your investments. Allocate a portion of your Rs. 10,000 monthly investment towards this fund until it reaches the desired level.

Insurance Coverage
Importance of Insurance
Adequate insurance coverage is essential to protect against unforeseen events. It ensures your financial plan remains intact even in adverse situations.

Health and Life Insurance
Ensure you have sufficient health insurance to cover medical emergencies. A term life insurance policy can provide financial security to your family in case of any eventuality.

Engaging a Certified Financial Planner
Benefits of a CFP
A Certified Financial Planner (CFP) brings expertise and personalized advice. They help in crafting a financial plan tailored to your goals and risk profile. Engaging a CFP ensures disciplined and strategic investing.

Regular Consultations
Schedule regular consultations with your CFP. They can help in reviewing your portfolio, making necessary adjustments, and ensuring your investments align with your goals.

Final Insights
Achieving Rs. 50 lakhs in four years requires a strategic and disciplined approach. By investing Rs. 10,000 monthly in a mix of equity and debt funds, you can balance growth and stability. Actively managed funds offer potential for higher returns, while debt instruments ensure capital preservation. Engaging a Certified Financial Planner ensures expert guidance and regular portfolio reviews. With careful planning and regular monitoring, you can achieve your financial goal and secure your daughter’s future.

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 Aug 13, 2024

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Money
Sir, im 37 yrs old married man with two children. I have around 40 lakh which i would like to invest for better future of my children along with getting some fund for self & wife during oldage. Please guide.
Ans: You have Rs 40 lakh to invest. Your main goals are securing your children’s future and ensuring financial stability for yourself and your spouse during old age. This is a significant amount, and it’s crucial to allocate it wisely to achieve these goals.

Allocating Funds for Children’s Future
Education Fund: Invest a portion in child education-specific mutual funds. These funds are actively managed and can help in building a substantial corpus over time. Regularly review the fund’s performance with a Certified Financial Planner.

Long-Term Growth: Consider investing in equity mutual funds for long-term growth. Equity funds, managed by professional fund managers, can potentially offer higher returns over time.

Securing Your Retirement
Retirement Corpus: Allocate a portion to retirement-focused mutual funds. These funds, actively managed, can help in growing your corpus while mitigating risk.

Systematic Withdrawal Plan (SWP): Once you retire, you can opt for SWP from your accumulated corpus. SWP provides a regular income, which can be beneficial in managing expenses during retirement.

Balancing Safety and Growth
Debt Funds: For a balanced approach, invest in debt funds. These funds offer stable returns with lower risk, making them ideal for preserving capital.

Diversification: Ensure your investments are diversified across different asset classes. This reduces risk and increases the chances of achieving your financial goals.

Regular Review and Adjustment
Periodic Review: Regularly review your investments with a Certified Financial Planner. Adjust the portfolio as needed based on market conditions and your changing financial needs.

Emergency Fund: Keep a portion of your funds liquid in case of emergencies. This ensures you are not forced to withdraw from your long-term investments.

Final Insights
Avoid ULIPs and Insurance-Based Investments: These often combine insurance with investment, leading to higher costs and lower returns. Instead, focus on pure investment products and separate term insurance for adequate coverage.

Active Management: Actively managed funds often outperform passive index funds, especially in the Indian market. Ensure your investments are in funds managed by experienced professionals.

Investing with a clear strategy can help you secure your children’s future and ensure a comfortable retirement for yourself and your spouse. Regular reviews and adjustments are essential for staying on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |5048 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

Nayagam P

Nayagam P P  |5048 Answers  |Ask -

Career Counsellor - Answered on May 24, 2025

Asked by Anonymous - May 24, 2025
Career
Sir,I got 75% in jee mains(general category) and 87% in boards(isc)...What are best college option for me to choose cse branch?
Ans: 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.

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