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Anil Rego  | Answer  |Ask -

Financial Planner - Answered on Apr 07, 2024

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Anbuchezhian Question by Anbuchezhian on Mar 28, 2024Hindi
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Sir, I AM 48 years and expected to work another 10 years, currently I have FD 30Lakh and maturing 04-10-24, MF accumulated value 22 Lakh and monthly SIP 60K and plan to rampup 10K every year. My question is should reinvest my FD as soon as it mature in MF, if Yes could please suggest good MF to invest in lumpsum and I can hold 5 to 8 years or more. also what would be the corpus I can make after 10 years with above investment.

Ans: It is better to reinvest your FD into MF’s since you have 10 Years to retirement. You can look at a mix of Large, Mid & Small-cap funds with a higher ratio to Large & Midcap funds with a systematic transfer plan(STP) mode or one time. Some Large-cap funds to mention are Nippon India Largecap fund, ICICI Bluechip fund & Mirae Largecap fund. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap funds. In the small-cap category one may look at ICICI Small-cap and Kotak small-cap funds. Small-cap funds can be through STPs through manage risk better. You are likely to build up a corpus of around Rs 4 cr.
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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Dear sir, I am now 37yr old, and I am investing in 4 parts as Tata Aia paaram rakshyak-10k, Quantam elss mf-5k Nippon India mf- 5k Icici pru signature mf-5k Total 25k monthly, so can you please guide me either I am doing right investment for get a good return in next 10 year with a amount of 3 CR. and request to you please suggest me to invest in any other MF. Please suggest
Ans: It's fantastic to see your proactive approach towards investing and planning for your financial future. At 37, you're at a pivotal stage where strategic investments can pave the way for substantial wealth accumulation. Let's delve into your current investment strategy and explore avenues to optimize returns while aiming for your target of ?3 crore in the next 10 years.

Commending Your Initiative

Firstly, kudos to you for taking the initiative to invest and secure your financial future. Your commitment to monthly investments showcases a disciplined approach towards wealth creation, which is commendable.

Evaluating Your Current Investments

Let's analyze your existing investment portfolio to gauge its potential to achieve your financial goals. You've allocated your investments across different avenues, including insurance and mutual funds, which reflects a diversified approach.

Assessing Investment Avenues

While your current investments exhibit diversity, let's explore additional avenues to enhance your portfolio's growth potential. Here's how we can optimize your investment strategy:

Equity Mutual Funds: Considering your investment horizon of 10 years, equity mutual funds offer the potential for higher returns. We'll focus on selecting funds with a strong track record of performance and reputable fund management teams.

Debt Mutual Funds: To balance risk, we'll allocate a portion of your investments to debt mutual funds. These funds provide stability to your portfolio and serve as a hedge against market volatility.

Systematic Investment Plans (SIPs): Leveraging SIPs allows you to benefit from rupee cost averaging and invest systematically over time, irrespective of market fluctuations.

Benefits of Actively Managed Funds

Actively managed mutual funds offer several advantages over passive index funds or ETFs:

Professional Expertise: Skilled fund managers actively monitor market trends and adjust portfolio allocations to capitalize on growth opportunities, potentially leading to higher returns.

Dynamic Allocation: Actively managed funds have the flexibility to adapt to changing market conditions, enabling fund managers to optimize returns and mitigate risks.

Disadvantages of Direct Funds

Direct funds require investors to conduct independent research and select funds without professional guidance. This approach can be challenging and time-consuming, especially for investors lacking financial expertise.

Benefits of Regular Funds Investing through MFD with CFP Credential

Investing through a Certified Financial Planner (CFP) credentialled Mutual Fund Distributor (MFD) offers several benefits:

Personalized Advice: A CFP-certified MFD provides tailored investment advice based on your financial goals and risk tolerance, ensuring your portfolio aligns with your objectives.

Access to a Wide Range of Funds: MFDs offer access to a diverse range of mutual funds, enabling you to build a well-rounded investment portfolio tailored to your needs.

Final Words

As you embark on this journey towards wealth creation, remember that consistency, patience, and prudent decision-making are key. By diversifying your investments, leveraging the expertise of certified professionals, and maintaining a long-term perspective, you're well-positioned to achieve your financial aspirations.

Warm Regards,

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Ramalingam Kalirajan  |9447 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

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Hi Sir, I am 53 yrs old, working professional , and have following pointers towards my financial status : - Monthly take home - 3 lac / month (after NPS and PF etc) - investing in NPS- 27 K / month - deduction for PF - 55 K / month - NPS (so far ) accumulated - 22Lac - PF - accumulated - 51 lac - Post office saving (MIS) - 1.2 Cr (in name of wife and daughters) - Jeevan shree LIC will mature and will get around 24 lac in 2027, where shall I reinvest it, pl suggest which MF? - Have enough gold, saved for marriage of my 2 daughters, both are qualified and about to start earning...(in 1~2 yrs), even higher studies expanse is planned or done. - 7 lac in sukanya samridhi yozna - Have Floor worth 1.3 Cr in ggn, where i am staying - have land worth 60 lac - liabilities - (a) 2 of my daughters marriage, and there is no loan, (b) except me and my wife old age expanse, there is no more liability. - Currently have SIP- 2000 Rs / month, in HDFC mid cap, and this is exactly my question, which MF should i invest / add to build a sufficient corpus before i retire in next 7 yrs, Ap
Ans: You have done well in building financial security. Let’s analyse key areas of your finances to suggest the best investment strategies for your goals.

Current Investments and Assets
Income and Savings: Your monthly take-home of Rs 3 lakh is substantial.

NPS and PF Contributions: These deductions ensure long-term stability and tax benefits.

Accumulated Wealth: NPS (Rs 22 lakh) and PF (Rs 51 lakh) provide a solid foundation for retirement.

Post Office Savings: Rs 1.2 crore ensures liquidity and low-risk returns.

Sukanya Samriddhi Yojana: Rs 7 lakh secures your daughters’ financial needs.

Gold Reserves: You have adequately planned for daughters’ weddings.

Real Estate: Your home (Rs 1.3 crore) and land (Rs 60 lakh) add value to your net worth.

Jeevan Shree LIC: The maturity corpus of Rs 24 lakh in 2027 offers reinvestment opportunities.

Current SIP: Rs 2000 in HDFC Midcap Fund is a start, but needs scaling for better results.

Goals to Address
Retirement Corpus: You need a plan to accumulate funds for a comfortable retirement in 7 years.

Daughters’ Marriages: This major expense requires careful allocation of funds.

Old-Age Expenses: Ensure enough liquidity for you and your wife post-retirement.

Enhancing SIP Investments for Retirement
1. Increase SIP Contributions

Your current SIP of Rs 2000/month is insufficient.

Allocate Rs 50,000–70,000 per month towards SIPs in equity mutual funds.

Increase SIP annually by Rs 5000 to counter inflation.

2. Choose a Diversified Equity Portfolio

Invest in Large-Cap Funds for stability and steady returns.

Add Flexi-Cap Funds for balanced exposure across market capitalisation.

Continue with Mid-Cap Funds for higher growth potential.

Allocate a smaller portion to Small-Cap Funds for long-term wealth creation.

3. Tax-Efficient Funds

Select Equity Linked Savings Schemes (ELSS) to save taxes under Section 80C.

Review tax implications to optimise your net returns.

Reinvesting the LIC Maturity Amount
1. Lump Sum Investment Strategy

Invest Rs 24 lakh from LIC maturity in balanced advantage funds or hybrid equity funds.

These funds provide moderate risk and consistent returns.

Rebalance annually to maintain desired asset allocation.

2. Create a Systematic Withdrawal Plan (SWP)

Post-retirement, use an SWP for regular income from mutual funds.

This ensures a steady cash flow for old-age expenses.

Managing Post Office Savings
1. Diversify Beyond Fixed-Income Instruments

Redeploy part of the Rs 1.2 crore in equity mutual funds.

Use staggered investments via Systematic Transfer Plans (STPs).

2. Maintain Liquidity

Retain 30–40% of savings in fixed-income instruments for emergencies.
Investment Allocation for Long-Term Growth
1. Create an Asset Allocation Plan

Equity: 60% for high growth.

Debt: 30% for stability.

Gold and Others: 10% for diversification.

2. Review and Rebalance Regularly

Consult a Certified Financial Planner to review your portfolio annually.

Adjust allocation based on market conditions and financial goals.

Addressing Daughters’ Marriages
Adequate gold and Sukanya Samriddhi Yojana funds already ensure preparedness.

Avoid liquidating long-term growth assets like equity funds prematurely.

Securing Old Age
1. Build a Retirement Corpus

Target a retirement corpus based on estimated expenses and inflation.

Use SIPs in equity and balanced funds to grow your corpus.

2. Medical and Emergency Fund

Create a separate medical corpus with 5–7% of your total assets.

Keep this in debt mutual funds or high-interest fixed deposits.

Final Insights
You are well-positioned to achieve financial independence. Scaling up SIPs in equity mutual funds will strengthen your retirement corpus. Diversifying the maturity amount from LIC into hybrid funds will enhance returns. Regular reviews with a Certified Financial Planner will ensure your investments remain aligned with goals. Continue maintaining a disciplined approach, and you’ll secure a financially stable future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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My daughter wants to do aerospace engineering and want to in the space related field or ece is better. which college is best in Bangalore? It has opportunity in future? Good to study?
Ans: Bengaluru’s top aerospace engineering colleges according to the National Institutional Ranking Framework are Ramaiah University of Applied Sciences (rank 65), RV College of Engineering (99), BMS College of Engineering (98), Dayananda Sagar University (126), and Jain University (157). (The NIRF ranks shown in brackets are approximate; actual rankings may fluctuate each year due to changes in the NIRF evaluation process and institutional performance). All of these colleges have AICTE-approved programs and feature modern labs for aerodynamics, propulsion, and structural mechanics. Premier Electronics & Communication Engineering institutes include RV College of Engineering, BMS College of Engineering, Bangalore Institute of Technology, MVJ College of Engineering, and Dayananda Sagar College of Engineering, each featuring NBA-accredited ECE curricula, specialized VLSI, DSP, and embedded-systems facilities, experienced doctoral faculty, active industry partnerships, and dedicated placement cells. Institutions are evaluated on robust accreditation status, faculty expertise, infrastructure and lab quality, industry-linked internships, and structured placement support, fostering a conducive learning environment for female talent. Aspiring female aerospace students gain access to niche space research, interdisciplinary STEM rigor, collaborations on national and international missions, and cross-disciplinary innovation, yet navigate intense theoretical demands, limited cohort diversity, strict safety protocols in labs, potential gender imbalances in workshop settings, and fewer entry points compared to the broader ECE spectrum. Accreditation by NBA and NAAC A+ across these universities affirms quality standards, while centralized placement cells maintain high placement consistency through recruiter drives, mentorship workshops, and pre-placement training. Campus support services, safe female housing, and dedicated welfare cells further enhance the student experience.

Recommendation: For a direct path into space research and satellite design with world-class labs, choose Aerospace Engineering at RV College of Engineering. If you prefer broader electronics and communications roles with extensive internships, higher intake cohorts and versatile career pathways, opt for ECE at RV College of Engineering in Bengaluru. All the BEST for Admission & a Prosperous Future!

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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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