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Sunil

Sunil Lala  |201 Answers  |Ask -

Financial Planner - Answered on Apr 18, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Vinay Question by Vinay on Apr 17, 2024Hindi
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Hi Sir, i am 50 years investing in HDFC top 100 regular - 2k, ICICI prudential blue chip fund regular-3k, ICICI P.H.D. fund direct - 1k, Kotak flexi cap direct - 1k, PPFAS flexi cap direct - 5k, DSP midcap direct - 3k, ABSL frontline equity fund regular - 3k, Axis blue chip regular - 3k, PGIM midcap - 3k, Motilal oswal 500 index fund direct - 1k, Nippon India Multicap fund direct - 3k from last 5 years and want to invest for another 5 years. Any suggestions for change.

Ans: All the funds are good but you have too many fund, if you can manage it than its good. You can put 5k SIP in a good Multicap fund
Asked on - Apr 20, 2024 | Not Answered yet
Already I am investing in Nippon india multicap fund direct growth - 3k, I have to increase another 2k or I have to start the new one with 5k. Please suggest.
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  |6528 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2024

Asked by Anonymous - Apr 12, 2024Hindi
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Sir, i am 34 Years investing around 10k in SBI small cap fund, 10k in HSBC midcap, 10k in Kotak flexicap, 10k in Aditya large cap, 10k in ICICI All season bond fund for next 10 years, any suggestions for change ?
Ans: Your investment strategy appears well-diversified across different market caps and fund categories, which is a good approach. However, here are a few suggestions for potential improvements:

Review Small Cap Fund: While SBI Small Cap Fund has performed well historically, small-cap funds can be more volatile. Consider reviewing its performance and risk profile periodically to ensure it aligns with your investment goals and risk tolerance.

Evaluate Midcap and Flexicap Funds: HSBC Midcap and Kotak Flexicap Funds are good choices, but periodically review their performance compared to peers and benchmark indices. Ensure they continue to meet your expectations in terms of returns and risk.

Assess Large Cap Fund: Aditya Birla Sun Life Large Cap Fund is a reputable fund, but consider reviewing its performance relative to other large-cap funds in the market. Ensure it remains competitive in terms of returns and consistency.

Monitor Bond Fund: ICICI All Season Bond Fund is suitable for providing stability to your portfolio, especially during market downturns. However, periodically review its performance and the prevailing interest rate environment to ensure it continues to meet your expectations.

Regular Review: Periodically review your portfolio's performance, asset allocation, and your financial goals. Consider rebalancing your portfolio if necessary to maintain your desired asset allocation.

Consider Professional Advice: If you're unsure about managing your investments or need personalized advice, consider consulting with a financial advisor. They can provide tailored recommendations based on your financial situation, goals, and risk tolerance.

Overall, continue to monitor your portfolio's performance and make adjustments as needed to stay on track towards achieving your financial objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |6528 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Sir, i am 50 years old investing in HDFC Top 100 regular growth - 2k, ICICI prudential blue chip fund direct growth -3k, ICICI (P.H.D) fund direct growth - 1k, Kotak flexi cap fund direct growth - 1k, PPFAS flexi cap direct growth - 3k, DSP midcap direct plan growth - 3k, ABSL frontline equity fund regular growth - 3k, Axis blue chip fund regular growth - 3k, PGIM midcap Opportunities fund direct growth- 3k, Motilal oswal S&P 500 index fund direct growth - 1k, Nippon India Multicap fund direct growth - 3k from last 5 years and want to invest for another 5 years. Any suggestions for change
Ans: You've demonstrated a commendable commitment to your financial well-being through your diversified investment portfolio. As you look ahead to the next five years, it's wise to periodically review and reassess your investment strategy.

Consider reflecting on your financial goals, risk tolerance, and the performance of your current holdings. Are there any funds that have consistently underperformed or no longer align with your investment objectives? Are there emerging opportunities or sectors you wish to explore?

Engaging with a Certified Financial Planner can provide invaluable insights and personalized recommendations tailored to your unique circumstances. They can help fine-tune your portfolio, optimize asset allocation, and navigate market dynamics effectively.

Remember, investing is a journey, not a destination. Stay adaptable, stay informed, and continue striving towards your long-term financial goals with confidence and clarity. Your proactive approach to financial planning is a testament to your commitment to securing a brighter future.

..Read more

Ramalingam

Ramalingam Kalirajan  |6528 Answers  |Ask -

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

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Hi Sir, i am 50 years old investing in HDFC Top 100 regular growth - 2k, ICICI prudential blue chip fund direct growth -3k, ICICI (P.H.D) fund direct growth - 1k, Kotak flexi cap fund direct growth - 1k, PPFAS flexi cap direct growth - 3k, DSP midcap direct plan growth - 3k, ABSL frontline equity fund regular growth - 3k, Axis blue chip fund regular growth - 3k, PGIM midcap Opportunities fund direct growth- 3k, Motilal oswal S&P 500 index fund direct growth - 1k, Nippon India Multicap fund direct growth - 3k from last 4 years and want to invest for another 5 years. Any suggestions for change
Ans: It's commendable to see your disciplined approach towards investing at 50. Your current portfolio is well-diversified across large-cap, flexi-cap, mid-cap, and index funds. Let's review your portfolio and suggest some potential changes or adjustments considering your age and investment horizon.

Portfolio Review:

Diversification: Your portfolio is diversified across different mutual fund categories, which is good for risk management.
Expense Ratio: As you're investing in regular plans, consider shifting to direct plans of the same funds to save on expense ratio and increase returns over the long term.
Mid-cap Exposure: Given your age and proximity to retirement, you might consider reducing exposure to mid-cap funds as they are generally more volatile compared to large-cap funds.
Suggestions:

Consolidation: Consider consolidating similar categories of funds to streamline your portfolio and reduce overlap. For example, you have exposure to multiple large-cap and flexi-cap funds; you can consider retaining 2-3 funds from each category based on performance and consistency.
Shift to Direct Plans:
While shifting to direct plans can help in reducing the expense ratio, staying with regular plans has its benefits. Regular plans offer the advantage of having the support and guidance from a Mutual Fund Distributor (MFD). An MFD can provide valuable insights, updates on market trends, and personalized advice tailored to your investment needs. They can assist in navigating the complexities of mutual fund investments and ensure your portfolio remains aligned with your financial goals and risk tolerance. Additionally, the expertise and ongoing support from an MFD can be particularly beneficial, especially for investors who prefer professional guidance and assistance in managing their investments effectively.
Reduce Mid-cap Exposure: Given your age and risk profile, consider reducing exposure to mid-cap funds. You can shift a portion of your mid-cap investments to large-cap or flexi-cap funds to maintain a balanced portfolio.
Review Performance: Periodically review the performance of your funds compared to their benchmarks and peers. Consider replacing underperforming funds with better-performing ones.
Consult a Certified Financial Planner: Given the complexities of mutual fund selection and individual financial situations, it's beneficial to consult a Certified Financial Planner. They can provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon. They can help you optimize your portfolio, suggest suitable changes, and guide you on achieving your financial goals.
Remember, regular review and adjustments are essential to ensure your portfolio remains aligned with your financial goals and risk tolerance. Best wishes on your investment journey!

..Read more

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Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Hi Sir, Im 29 male,earning 75k post deductions, Im having 1.6Y baby,Ive term insurance and corporate health insurance. Ive set my goals as below Daughter education anount-(50-60 Lakhs) Considering the current fee structure assuming it would be this much Note:Amount mentioned for her whole education carrer. House purchase: It a long term goal I wanted to purchase own house. Not sure how much cost it would be in Bangalore after 10y.Kindly suggest how much one should save for the same. Retirement goal: For Retirement I would like to have a corpus of 2CR. Considering the above goals How can I achieve,Im doing investments as below 14K SIP Started from this year At present invested around 73K Direct stock value:65K SSY: 2K per month Emergency fund: Holding 6 month expenditure Liquid Amount 1L And I have a personal loan which will be completed by APR 2025. This is my current financial condition. Please suggest how can I achieve my Goals as per the current financial plan.
Ans: Hello;

I hope your term life cover is adequate (1.35-1.8Cr).
Apart from corporate health insurance it is always better to have personal health care cover as a precaution.

Glad to note that you reckoned these as important aspects of financial planning and mentioned about it upfront.

Now I recommend you the following:
Kid's higher education: 1 Cr (50-60L is less)
Retirement Corpus: 2 Cr
House: 1.75 Cr (Approx cost of 2 bhk flat in decent locality of Bengaluru 10 years hence)

Investments to fund these goals:
1. Kid's education:
Two investments will work in parallel to reach the goal.
12.5 K per month in SSY
10 K SIP in a aggressive hybrid mutual fund. Both these investments will yield corpus of around 46 L and 54 L in 15 years from now.(8% and 13% returns assumed respectively). So 1 Cr target achievable.

House: 14 K monthly sip will grow into a corpus of 35 L(=20% down payment for house worth 1.75 Cr; Balance through home loan)

Retirement corpus:
Start a monthly sip of 5 K flexicap mutual fund which will give corpus of 2.21 Cr, after 30 years.

Retirement corpus estimated on relatively lower side so request you to top it up as and when possible. Ofcourse you may have EPF which may complement it.

Do not dabble into direct stocks unless you have the knowledge and temperament to trade.

If you still want to do it earmark a fixed amount as your risk capital which you wouldn't mind even if it becomes zero and use it to deal in stocks, but strictly based on self knowledge and/or guidance from an investment advisor. Not based on TV and social media tips!!

6 month emergency fund provision in liquid funds is a good strategy.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 05, 2024Hindi
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I am 41 years old........ I am earning approximately 1.7 lakh per month...... My family liability is approximately 50000 per month.......i have a liability of 10 lakh home loan for which i am paying 12500 monthly EMI.......my investment include 40000 per month in PPF, 4200 in NPS and 3 lakh invested in mutual funds......I own a house worth 70 lakh and a plot of land worth 30 lakh.......please guide me for my forther planning as i will retire at age of 54 on 2037.
Ans: Hello;

If you are sure about not using the land plot in future then I suggest you sell it and invest the proceeds into mutual funds.

So land sell proceeds(30 L) + existing corpus of 3 L if stays invested in pure equity mutual funds for next 13 years, it will yield you a corpus of 1.62 Cr.

Also I recommend you to start a monthly sip of 50 K into pure equity fund for 13 years. At the end of 13 years it may yield you a corpus of around 2.04 Cr. (A modest return of 13% is assumed for all mutual fund investments)

NPS investment will not mature till you reach 60 so I am keeping it out of our working.

Your contribution of 40 K per month to EPF+PPF(PPF contribution cannot be more then 1.5 L per person per year) will grow into a corpus of 1.1 Cr after 13 years.(A modest return of 8% is assumed)

So your comprehensive corpus in 2037 will be 1.62+2.04+1.1= 4.76 Cr.

If you buy an immediate annuity from an insurance company for your corpus of 4.76 Cr, you may expect a monthly payout of 1.66 L(post tax) considering annuity rate of 6%.

If you don't want to sell the land parcel then I recommend you to start an sip of 60 K per month for 13 years. This may yield you a corpus of 2.45 Cr after 13 years.

3 L current MF corpus will grow to 0.1469 Cr after 13 years

So your comprehensive corpus now is 2.45+1.1+0.1469=~3.70 Cr

If you buy an immediate annuity from an insurance company for your corpus of 3.7 Cr then you may expect to receive a monthly payout of 1.3 L(post tax).

Further NPS will yield you a corpus of 25.5 L at the attainment of 60 years of age.(9% return considered; hoping you will continue to contribute after your retirement at 54 age)

I am sure you have adequate term life insurance and healthcare insurance for yourself and family.

You are ready to retire at 54 as planned.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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Radheshyam

Radheshyam Zanwar  |968 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Oct 07, 2024

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My son is doing his XII Standard in CBSE Curriculum with Maths,Physics, Chemistry and Biology as his group. He is yet to decide on what next after XII with his mind wavering between Astro Physics or Micro Biology with NEET in mind. Any guidance is welcome.
Ans: Hello Srinivasan.
I am glad to hear that your son is exploring diversified fields at this early stage. Astrophysics and Microbiology both are fascinating and rewarding paths, but they differ significantly in terms of the career options and the type of studies involved.
My suggestion for your son would be to focus only on the NEET examination at this stage. There is no need to divert the mind without any reason at this stage. After the NEET examination is over, you have ample time to discover more career options along with Astrophysics and Microbiology. The inclination toward career options of a student changes multiple times during the 11th and 12th. If he is brilliant, a hard worker, and dedicated to his studies, then set a goal of Min 650 marks in the NEET examination.
For Astrophysics: Focus on excelling in Physics and Maths in XII. He can apply to top institutions like IISc, IITs, or IISERs for B.Sc. programs.
For Microbiology: Prepare for NEET if he wants to take the medical path. Otherwise, he can explore a B.Sc. in Microbiology at a reputable university.

Best of luck for his future career and upcoming NEET examination.

If you are dissatisfied with the reply, please ask again without hesitation.
If satisfied, please like and follow me.
Thanks.

Radheshyam

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Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Now I'm 43 years old, but next 5 year's I need 3cr with best mutual funds to invest and son education, marriage and my retirement, currently I have housing loan commitment. 70lakhs, how should I close my loan ASAP and I should have 3cr in my hand. Kindly help me, I'm in scary situation, I'm working in private sector 95k my take home and current home loan emi is 63k, 4500 recently started investment through groww app in parakh Parikh small fund, 12500 in PPF etc, kindly help. I'm completely in debt trap.
Ans: Hello;

General Comments:
People always delay retirement planning for later stage but this is not ok.

Because when you are young the investible surplus amount maybe less but you have the biggest resource, time on your side.

A mere 25K monthly sip can achieve 3 Cr in 20+ years

Query Specific Comments:
If you need this corpus in 5 years then you need to make a monthly sip of 3.55 Lacs Minimum to reach 3 Cr corpus in 5 yrs.(modest return of 13% considered).

Focus on improving your earning because then you can earmark larger amounts for investing towards your goals.

Also try to prepay the home loan as early as possible through EPF corpus or some asset sale.

Do not panic if you diligently pre-close the home loan you have ample time to invest and create a comfortable corpus for your goals.

Continue investing in MFs with increasing allocation, PPF to reach your goals.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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I am 24 years old and earn a monthly salary of Rs.65,000. I am interested in investing some of my funds for future financial security and am also planning to marry in two years. As I have no prior knowledge of investment, I would greatly appreciate guidance on this matter.
Ans: Hello;

First and foremost buy a good term life cover including riders for critical care and accident benefit.

Ensure that you can top-up the sum assured later when you grow your responsibilities after marriage.

For retirement planning you should consider investing in NPS. If your office provides it well and good but otherwise also you can open NPS account and contribute regularly for financing your retirement. It's an E-E-E type of scheme. Charges are quite low and you can decide to select allocation to the asset classes like equity, corporate debt or sovereign bonds as per your risk tolerance. It allows limited withdrawal before 60.

If you decide to contribute to NPS per month an amount of 20 K, it will grow into a corpus of 6.51 Cr by the time you are 60 years of age.(A modest return of 9% is considered)

For all other goals such as marriage, house, kid's education, car, vacation you can use mutual funds as your mode of investments.

If you do a monthly sip of say 15 K into a pure equity mutual fund then at the end of 5 years you may expect to receive a corpus of 12.72 L considering moderate return of 13%.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...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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