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Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Jul 23, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Asked by Anonymous - Jun 03, 2023Hindi
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Hi , I am 44 years old , Currently I have invested in following SIPs , 1. SBI Multicap Fund - 5K , 2. SBI Small Cap Fund Direct Growth-5K , 3. SBI Focused Equity Fund Direct Growth- 5K , 4. Parag Parikh Flexi Cap -2K 5. PGIM India Midcap Opportunities Fund Direct-Growth - 1.5K 6. ICICI Prudential Bluechip Fund Direct-Growth-1.5K 7. Quant Flexi Cap Fund Direct-Growth-2K . Are these SIPs good to continue ? I want to invest another 5K in SIP, please suggest me some good options.

Ans: Your current SIPs are a good mix of equity funds. They provide you with exposure to a variety of asset classes and investment styles but we suggest you also maintain your asset allocation according to your age, risk profile, and goals.

Your current asset allocation is 100% in equity funds, and you don’t have any debt investments. So, we suggest you to change your asset allocation and add some hybrid/debt funds in your portfolio.
For the additional Rs. 5,000 SIP, we suggest investing in the Aggressive Hybrid category or Balanced Advantage category for the purpose of diversification and asset allocation.

Here are a few suggestion for aggressive hybrid and balanced advantage category:

Aggressive Hybrid - Mirae Asset Hybrid Equity Fund
Balanced Advantage – Edelweiss Balanced Advantage Fund

The best SIP for you will depend on your investment goal and risk tolerance.
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 Kalirajan  |4814 Answers  |Ask -

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Asked by Anonymous - Sep 08, 2023Hindi
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Dear Sir, I am 51 years old. I have been investing in SIP for 3 years and planning to invest for coming 7 years. My Present SIPs are Axis Blue Chip Fund Regular Growth @2000/- Axis Mid Cap Regular Growth @2000/- Mirae Asset Emerging Fund Regular @2000/- UTI Flexicap Fund Regular Growth @2000/-, HDFC TOP 100 Regular Growth @2000/-. Any advise for the portfolio.
Ans: Your current SIP portfolio appears well-diversified across different categories like large-cap, mid-cap, and flexi-cap funds, which is good for long-term wealth creation. Since you have a 7-year investment horizon, you may consider the following suggestions:

Review Asset Allocation: Ensure your asset allocation aligns with your risk tolerance and financial goals. Since you're in your early 50s, you may want to tilt slightly towards more conservative options while still maintaining exposure to equities for growth potential.

Consider Adding Debt Funds: Given your age and investment horizon, consider adding debt funds to your portfolio to reduce overall risk. Debt funds can provide stability and income generation while complementing the growth potential of equity funds.

Regularly Monitor and Rebalance: Keep track of your portfolio's performance and periodically rebalance if needed to maintain your desired asset allocation. As you approach your investment goal, consider gradually shifting towards more conservative investments to protect your capital.

Seek Professional Advice: Consider consulting with a financial advisor who can provide personalized recommendations based on your specific financial situation, goals, and risk tolerance. They can help optimize your portfolio for better returns while managing risk effectively.

..Read more

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Ramalingam Kalirajan  |4814 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 08, 2024Hindi
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Hi Team, I am 35 and have below SIPs. Please review them and let me know if i have to make any changes. Parag Pareikg flexi cap fund - 10000 Motilal Oswal S&P 500 index fund - 2500 Quant Small Cap Fund- 5000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Banking & Financial Services Fund- 2500. Focus is to continue SIP for longterm
Ans: It's great to see your commitment to investing for the long term. Let's review your current SIP portfolio and discuss if any adjustments are needed to align with your goals.

Evaluating Your SIPs
Your portfolio consists of a mix of equity funds focusing on different market segments. Here's a brief overview of each fund:

Parag Parikh Flexi Cap Fund (Rs. 10,000): Known for its flexible investment approach across market caps and sectors, providing diversification and potential for long-term growth.

Motilal Oswal S&P 500 Index Fund (Rs. 2,500): Provides exposure to the top 500 companies in the US stock market, offering diversification and growth potential in the world's largest economy.

Quant Small Cap Fund (Rs. 5,000): Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

PGIM India Mid Cap Opportunities Fund (Rs. 5,000): Focuses on mid-cap companies with strong growth prospects, offering potential for capital appreciation over the long term.

SBI Banking & Financial Services Fund (Rs. 2,500): Invests in companies operating in the banking and financial services sector, benefiting from the growth potential of the Indian financial industry.

Recommendations for Optimization
Your portfolio is well-diversified across different market segments, which is essential for long-term growth. However, here are a few suggestions to consider for further optimization:

Monitor Performance: Regularly review the performance of each fund and assess whether they continue to meet your investment objectives. Consider replacing underperforming funds or reallocating assets based on changing market conditions and your financial goals.

Assess Risk Tolerance: Ensure that your portfolio's risk level aligns with your risk tolerance and investment horizon. While small-cap and mid-cap funds offer higher growth potential, they also come with increased volatility. Make sure you're comfortable with the level of risk in your portfolio.

Consider International Diversification: While the Motilal Oswal S&P 500 Index Fund provides exposure to the US stock market, you may consider adding more international diversification to your portfolio. Explore options such as global equity funds or international index funds to broaden your investment horizon.

Review Sectoral Exposure: Given your investment in the SBI Banking & Financial Services Fund, be mindful of overexposure to a single sector. Monitor the fund's performance and consider diversifying across sectors to reduce concentration risk.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term growth. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |4814 Answers  |Ask -

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

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Ramalingam Kalirajan  |4814 Answers  |Ask -

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

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Age41 yrs , Currently been doing monthly SIP in below mutual funds: * Parag parikh elss tax saver fund : 2000 a month ( 1 year ) * Quant mid cap fund : 5000 a month (started newly ) I am self employed who earns minimum 50k a month I have term insurance and health insurance for my family . Would like to retire my age 55 , keeping inflation and children education and other expenses in my mind . How should I go ahead
Ans: You are 41 years old. You earn Rs. 50,000 a month. You have term insurance and health insurance for your family. You are investing in two SIPs: Parag Parikh ELSS Tax Saver Fund (Rs. 2,000/month) and Quant Mid Cap Fund (Rs. 5,000/month).

Retirement Goal
You plan to retire at 55. Consider inflation, children's education, and other expenses in your planning. Start by estimating your retirement corpus. This should cover living expenses, healthcare, and other needs.

Investment Strategy
Increase your SIP contributions gradually. This will help build a larger retirement corpus. Diversify your investments across equity, debt, and hybrid funds. This balances risk and provides stable returns.

Actively Managed Funds
Actively managed funds offer better potential returns. Fund managers select stocks based on research. This can outperform index funds, which only track the market.

Tax Saving and Growth
Continue investing in ELSS funds for tax benefits. They also provide good returns over the long term. Consider adding more equity funds for growth. Equity funds can beat inflation and provide higher returns.

Education Fund for Children
Start a separate education fund for your children. Invest in a mix of equity and debt funds. This ensures their education expenses are covered.

Emergency Fund
Maintain an emergency fund to cover at least six months of expenses. This provides financial security in case of emergencies. Use a high-interest savings account for this fund.

Regular Fund Investments
Consider regular funds with the help of a Certified Financial Planner (CFP). Regular funds come with expert advice and monitoring. This ensures your investments stay aligned with your goals.

Review and Rebalance
Review your portfolio regularly. Rebalance it to maintain the desired asset allocation. This helps manage risk and improve returns.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They can provide a tailored financial plan. Professional guidance helps achieve your financial goals efficiently.

Final Insights
Increase your SIPs and diversify investments. Plan for children's education and maintain an emergency fund. Seek professional guidance for a comprehensive financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam Kalirajan  |4814 Answers  |Ask -

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

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I am 30 years old working in Public sector bank my salary is monthly 60000 and I have shares worth 1100000 and mutual funds worth 200000 and I am investing monthly SIP 13000 Including equity, best and hybrid funds I have health and term insurance I would like to retire at 50 years with corpus of 3 crores how can I improve my investment strategy.
Ans: You are 30 years old, earning Rs 60,000 monthly. You have shares worth Rs 11 lakhs and mutual funds worth Rs 2 lakhs. You are investing Rs 13,000 monthly in SIPs. You also have health and term insurance.

Retirement Goal

You aim to retire at 50 with a corpus of Rs 3 crores. This goal is achievable with a well-planned strategy.

Investment Strategy Evaluation

Your current investments include equity, debt, and hybrid funds. This mix is good for diversification. However, to reach Rs 3 crores, you need to optimise and possibly increase your investments.

Disadvantages of Direct Funds

Direct funds require constant monitoring. Regular funds, managed by a Certified Financial Planner (CFP), can provide expert advice and better management. This ensures your investments are aligned with your goals.

Recommendations for Improvement

Increase SIP Contribution: Gradually increase your SIP amount as your salary grows.

Professional Management: Regular funds managed by a CFP can offer better returns and less hassle.

Diversify Portfolio: Include large-cap funds to balance the risk and return.

Regular Reviews: Monitor and adjust your portfolio regularly with the help of a CFP.

Final Insights

Your goal to retire with Rs 3 crores is realistic. You need to increase your SIPs, diversify your portfolio, and seek expert advice. Regular funds managed by a Certified Financial Planner can help you achieve your target with less stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Asked by Anonymous - Jul 16, 2024Hindi
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Hello Experts, I am currently working in pvt sector and am 32 years old. My current in hand salary is 1.45lac per month. I am currently paying off my father's home loan of 38lacs, with current outstanding of 24lacs. I have bought a flat back in 2021, for which the loan is of 70lac for 30years.I have a loan insurance for this loan. The EMI for this has not been started yet. It will start once the builder will provide possession of the same. I am paying 15500 monthly rent and apart from that monthly expenses amounts to 30k a month. I am married and my wife is a homemaker and I have a baby girl 2months old. Could you please guide me.
Ans: You have a monthly salary of Rs. 1.45 lakhs. You are paying off your father's home loan with Rs. 24 lakhs outstanding. You bought a flat in 2021 with a Rs. 70 lakhs loan. Your EMI for this will start once you get possession. You pay Rs. 15,500 rent and have monthly expenses of Rs. 30,000. You are married with a homemaker wife and a 2-month-old daughter.

Debt Management
Focus on repaying your father’s home loan. Prioritize this to reduce financial burden. Use part of your monthly income for this. Once the EMI for your flat starts, your expenses will increase. Plan for this additional expense in advance.

Expense Management
You pay Rs. 15,500 in rent and Rs. 30,000 in other expenses. Ensure these expenses are well-managed. Create a monthly budget to track your spending. This will help you save more.

Emergency Fund
Build an emergency fund to cover at least 6 months of expenses. This will provide financial security. Use a high-interest savings account for this fund.

Insurance Coverage
You have loan insurance for your flat. Ensure you also have adequate life and health insurance. This protects your family in case of emergencies.

Investment Planning
Start a Systematic Investment Plan (SIP) in mutual funds. SIPs allow you to invest a fixed amount regularly. This helps in disciplined investing and wealth creation.

Benefits of SIPs
SIPs help in rupee cost averaging. This reduces the impact of market volatility. They provide the benefit of compounding returns. SIPs are flexible, allowing you to increase or decrease your investment amount.

Actively Managed Funds
Actively managed funds offer better returns than index funds. Professional fund managers select stocks based on research. This can outperform the market.

Regular Funds vs Direct Funds
Regular funds come with the expertise of a Certified Financial Planner (CFP). CFPs provide personalized advice and regular monitoring. This ensures your investments remain aligned with your goals.

Child’s Education Planning
Start an education fund for your daughter. Invest in a mix of equity and debt funds. This will ensure her future education expenses are covered.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They can provide a tailored financial plan. Professional guidance will help you achieve your financial goals efficiently.

Final Insights
Prioritize debt repayment. Build an emergency fund. Invest in SIPs for long-term growth. Secure your family’s future with proper insurance and planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam Kalirajan  |4814 Answers  |Ask -

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

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Current Investment: Age: 23Monthly SIP: ?3,600 Portfolio: Small Cap, Mid Cap, and Index Funds Financial Goals: Goal 1: Accumulate ?1 crore in the next 3 years Goal 2: Accumulate ?5 crores in the next 10 years Goal 3: Accumulate ?25 crores by the age of 50 (in 27 years) Questions: how much should I be investing monthly in SIPs to achieve these goals?Could you suggest a diversified portfolio that balances growth and risk? What adjustments or additional strategies would you recommend to make these goals more achievable?Are there any specific mutual funds you would recommend for each goal?
Ans: You are 23 years old and investing Rs 3,600 per month in SIPs. Your portfolio includes small-cap, mid-cap, and index funds.

Financial Goals Assessment

Goal 1: Accumulate Rs 1 crore in 3 years.
Goal 2: Accumulate Rs 5 crores in 10 years.
Goal 3: Accumulate Rs 25 crores by age 50 (27 years).
Monthly Investment Requirement

To achieve these goals, the current SIP of Rs 3,600 per month is not enough. You will need to increase your SIP amount significantly. Consulting a Certified Financial Planner (CFP) will provide precise guidance on the required SIP.

Portfolio Diversification

Your current portfolio is heavily inclined towards small-cap, mid-cap, and index funds. These funds can be volatile. Including large-cap and flexi-cap funds will balance growth and risk.

Disadvantages of Index Funds

Index funds often track the market. They may not outperform it. Actively managed funds, managed by experts, can offer better returns and risk management.

Disadvantages of Direct Funds

Direct funds need continuous monitoring. Regular funds, managed by a CFP, can offer professional advice, better management, and less hassle.

Additional Strategies

Increase SIP Amount: Regularly review and increase your SIP as your income grows.

Seek Professional Guidance: A CFP can help you choose the right funds and strategies.

Diversify: Balance your portfolio with large-cap, mid-cap, and small-cap funds to reduce risk.

Final Insights

Your ambitious financial goals require a substantial increase in your SIP contributions. Diversify your portfolio to include large-cap and flexi-cap funds. Seek advice from a Certified Financial Planner for tailored strategies and better management.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4814 Answers  |Ask -

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

Asked by Anonymous - Jul 16, 2024Hindi
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Dear Sir, I am 44 years old. With a total family salary income of 2.2 Lakhs/Month after tax, and I get a yearly one time bonus of Rs. 1.5 Lakhs. Below is my financial position. 1. Combined Family PF Accumulation - 50 Lakhs 2. Own individual house with no Loan(i.e. 20 years housing loan closed in 4 Years) 3. A empty commercial plot in a busy area in a First grade municipal town worth 1.6 Crores 4. A empty commercial land of area 32000 Sq.ft. on a busy National Highways worth 2 Crores 5. Gold Jewels - 2.1 Kg 6. Some ancestral houses and 7 acres agricultural lands from which I get 20K Per month excluding our(mine + wife) salary. 7. LIC Endowment Policies from which I can get Rs. 10 Lakhs if I surrender pre-maturely now. No FD, Mutual Funds and Shares. Debt: 1. 900 grams of gold to my close relative which I borrowed at Rs. 5500/gram in 2023, also has to return only as gold. 2. 35 Lakhs cash at Bank FD rate of interest from my Mom. 3. Gold Pledged for Rs. 18 Lakhs at a nationalized bank 4. Personal loan of Rs. 10 Lakhs, EMI Rs. 27000/month(Approx). - 50 Months remaining. Two daughters studying 11th and 6th respectively. Please guide me to come out of my debt as early as possible.
Ans: Your income and assets are strong. You have Rs. 2.2 lakhs monthly income and a Rs. 1.5 lakh yearly bonus. Your PF accumulation is Rs. 50 lakhs. You own a house with no loan. Your commercial properties are worth Rs. 3.6 crores. Your gold jewels weigh 2.1 kg. Your ancestral property provides Rs. 20,000 monthly.

Debt Analysis
You have some debts. You owe 900 grams of gold to a relative. You have Rs. 35 lakhs debt to your mother at FD interest rates. You have pledged gold for Rs. 18 lakhs at a bank. You have a personal loan of Rs. 10 lakhs with a Rs. 27,000 monthly EMI.

Liquidity Management
Consider surrendering your LIC endowment policies. This can provide Rs. 10 lakhs immediately. Use this amount to reduce high-interest debts. Prioritize paying off the personal loan and pledged gold loan first.

Debt Repayment Strategy
Focus on repaying high-interest loans. Use your bonus and part of your monthly income for this. Repay your personal loan early. This will save on interest costs.

Gold Loan Repayment
Repay the gold loan at the bank. Use part of your income and savings. This will free up your pledged gold. Return the borrowed gold to your relative as soon as possible.

Family Debt Clearance
Repay your mother’s debt with a structured plan. Consider paying a fixed amount monthly. This will reduce your financial burden over time.

Future Investment Planning
Start investing in mutual funds. Use a SIP to invest regularly. This will help grow your wealth. Actively managed funds are better than index funds. They can provide higher returns.

Education Planning for Daughters
Set up an education fund for your daughters. Invest in equity and debt funds. This will ensure their future expenses are covered.

Insurance Review
Review your insurance needs. Ensure you have adequate life and health insurance. This protects your family in case of emergencies.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They can provide a tailored financial plan. Professional guidance will help you achieve your financial goals efficiently.

Final Insights
Focus on debt repayment first. Invest regularly for future growth. Secure your family’s financial future with proper planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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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