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Ulhas Joshi  |266 Answers  |Ask -

Mutual Fund Expert - Answered on Jan 05, 2024

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Biswaranjan Question by Biswaranjan on Jan 05, 2024Hindi

I am 50yrs old . Have never invested in life. Earn around 60000 PM. where to start investment as a beginner.

Ans: Hello and thanks for writing to me. I am assuming that you are looking to invest for retirement and long term wealth creation.

As you are at 50 years, you can consider starting SIP's in a mix of multi-asset allocation funds and balanced advantage funds. These schemes invest in a mix of assets and can reduce volatility.

If you can share other relevant details like your risk taking appetite and your horizon, I may recommend another mix of funds.
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.

You may like to see similar questions and answers below


Moneywize   |124 Answers  |Ask -

Financial Planner - Answered on Jan 10, 2024

Asked by Anonymous - Jan 10, 2024Hindi
Hello Sir, I am currently living in a small city, Bharuch, in Gujarat. I am 51 years old and earn Rs. 55000 PM. I have never made any investments, please let me know what investments there are for beginners like me. Thank you.
Ans: Hello Mahi! It's never too late to start investing, and it's great that you're considering it now. There are several investment instruments suitable for beginners.

Here are some for you to consider:

1. Fixed Deposits (FDs): FDs are low-risk investment options offered by banks. You deposit a lump sum for a fixed tenure, and the bank pays you interest at regular intervals. It is a safe option for preserving capital.

2. Recurring Deposits (RDs): RDs are similar to FDs, but instead of a lump sum, you deposit a fixed amount every month. This is a systematic and disciplined way to save and invest.

3. Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers. Consider starting with balanced or equity-oriented mutual funds for potential growth.

4. Systematic investment Plan (SIP): SIP is a way to invest in mutual funds systematically. You invest a fixed amount regularly, allowing you to benefit from rupee-cost averaging and mitigate the impact of market volatility.

5. Public provident Fund (PPF): PPF is a long-term savings scheme with a lock-in period of 15 years. It offers tax benefits and a fixed, tax-free interest rate. You can consider investing a portion of your savings in PPF for retirement planning.

6. Stock Market: If you are comfortable with the risk, consider investing in individual stocks. However, stock market investments require thorough research and understanding. You might want to start with a small portion of your portfolio.

7. Gold: You can consider investing in gold through various channels, such as gold ETFs, sovereign gold bonds, or physical gold. Gold can act as a hedge against inflation.

Before making any investment decisions it is advisable to consult with a financial advisor to tailor your investment strategy based on your financial goals, risk tolerance, and time horizon.

Remember that diversification is key to managing risk in your investment portfolio. Hope this helps. Thank you.

..Read more


Ramalingam Kalirajan  |5193 Answers  |Ask -

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

Asked by Anonymous - Apr 08, 2024Hindi
Hello I am 26 years old and my salary is 80k. How should I start investment
Ans: Congratulations on taking the first step towards securing your financial future! At 26, with a salary of 80k, you're in a prime position to kickstart your investment journey. Let's delve into the key strategies and considerations to craft a robust investment plan tailored to your goals.

Understanding Your Financial Goals

Before diving into investments, it's crucial to clarify your financial objectives. Whether it's saving for a house, funding higher education, or retiring comfortably, defining your goals will shape your investment approach.

Assessing Risk Tolerance and Time Horizon

Every investor has a unique risk tolerance and time horizon. Understanding how much risk you're comfortable with and when you'll need access to your funds is paramount in determining the appropriate investment mix.

Diversification: The Cornerstone of Investing

Diversification spreads your investments across different asset classes to mitigate risk. By not putting all your eggs in one basket, you safeguard your portfolio against the volatility of any single investment.

Active vs. Passive Investing: Choosing the Right Approach

While passive investing through index funds or ETFs has gained popularity for its low fees and broad market exposure, it's essential to recognize the limitations. Actively managed funds offer the potential for higher returns through skilled fund managers' strategic decisions.

The Pitfalls of Direct Funds and the Merits of Regular Funds via MFD

Direct funds may seem enticing due to lower expense ratios, but they lack the personalized guidance of a Certified Financial Planner. Investing through a Mutual Fund Distributor (MFD) with CFP credentials ensures expert advice tailored to your financial goals, enhancing the effectiveness of your investment strategy.

Embracing a Long-Term Mindset

Investing is a marathon, not a sprint. Staying focused on your long-term objectives and avoiding impulsive decisions during market fluctuations is key to achieving financial success.

Building a Tax-Efficient Portfolio

Minimizing tax implications is integral to maximizing returns. Utilize tax-efficient investment vehicles such as Equity Linked Saving Schemes (ELSS) and Public Provident Fund (PPF) to optimize your portfolio's tax efficiency.

Regular Portfolio Review and Rebalancing

Periodically reviewing your portfolio's performance and rebalancing asset allocations ensures alignment with your evolving financial goals and risk tolerance.

Seeking Professional Guidance

Navigating the complexities of the financial market can be daunting. Partnering with a Certified Financial Planner provides invaluable expertise and personalized guidance to steer your investment journey towards success.

Investing wisely today lays the foundation for a prosperous tomorrow. By incorporating these strategies and staying committed to your financial goals, you're well on your way to achieving financial freedom.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5193 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 02, 2024

Asked by Anonymous - Jun 19, 2024Hindi
Hi Im a 18 year old & i want to start investing but I do not havd much idea about it. I plan to invest around 50k , how shall i invest & where?
Ans: It's great that you're thinking about investing at such a young age. Let's break down the key points to get you started on your investment journey in a simple and straightforward way.

Understanding Your Starting Point
Firstly, it's commendable that you're considering investing at 18. This is the perfect time to start. Investing early gives you the benefit of time, allowing your investments to grow and compound. Starting with Rs 50,000 is a good beginning, and you can build on it as you learn more.

Importance of Financial Goals
Before jumping into the "where" and "how" of investing, it's essential to understand "why" you're investing. Your goals can shape how you invest. Are you looking to save for higher education, buy a vehicle, travel, or simply grow your wealth? Knowing your goals can guide your investment choices and time horizon.

Risk Tolerance and Investment Horizon
At 18, you have the advantage of a long investment horizon. This allows you to take on more risk compared to someone closer to retirement. However, understanding your risk tolerance is crucial. Are you comfortable with the ups and downs of the market, or do you prefer stability? Your risk tolerance will determine the kind of investments suitable for you.

Basics of Diversification
Diversification is a key principle in investing. It means spreading your investments across different assets to reduce risk. By not putting all your money into one investment, you protect yourself from potential losses. A diversified portfolio typically performs better in the long run.

Exploring Different Investment Options
Now, let's talk about where to invest your Rs 50,000. Here are some avenues you can consider:

Mutual Funds: A Good Starting Point
Mutual funds pool money from many investors to invest in stocks, bonds, or other assets. They are managed by professional fund managers who make decisions on behalf of investors.

Advantages of Mutual Funds:

Professional Management: Experienced fund managers handle your investments.
Diversification: Funds typically invest in a variety of assets.
Accessibility: You can start with a small amount and invest regularly.
Disadvantages of Direct Funds:

Direct funds might seem appealing as they have lower costs. However, without the guidance of a Certified Financial Planner (CFP), you might not make the best decisions. Regular funds, managed by a CFP, offer professional advice that can enhance your returns and align investments with your goals.

Actively Managed Funds vs. Index Funds
You might have heard of index funds. These funds track a market index, like the Nifty 50, and are passively managed. While they have lower fees, they also have some drawbacks:

Less Flexibility: Index funds can’t adjust to market changes as they strictly follow the index.
No Expert Guidance: They lack the active decision-making of a fund manager, which might miss opportunities or risks.
On the other hand, actively managed funds involve a team making decisions to outperform the market. They adapt to market conditions, potentially offering better returns despite higher fees.

Public Provident Fund (PPF): Safe and Reliable
The Public Provident Fund is a government-backed savings scheme offering tax benefits. It’s a long-term investment option with a lock-in period of 15 years, suitable for risk-averse investors looking for a secure, stable return.


Tax Benefits: Contributions and returns are tax-free.
Safety: Government guarantees ensure your investment is secure.
Regular Returns: Fixed interest rate provides predictable growth.
Fixed Deposits: Simple and Secure
Fixed deposits (FDs) are another low-risk investment. You deposit money for a fixed period and earn interest. While they don't offer high returns, they are stable and secure.


Security: Your principal is protected.
Predictable Returns: Fixed interest rates give certainty.
Stocks: High Risk, High Reward
Investing in individual stocks can offer significant returns but comes with higher risks. As a beginner, this might be more challenging and requires in-depth research and understanding.


Potential for High Returns: Stocks can provide substantial growth.
Ownership: You own a piece of the company.

Volatility: Stock prices can fluctuate significantly.
Research Intensive: Requires time and knowledge to pick the right stocks.
Debt Instruments: Lower Risk, Stable Returns
Debt instruments like bonds and government securities offer lower risk and provide regular interest payments. They are suitable for those who prefer stability over high returns.


Lower Risk: Generally safer than equities.
Regular Income: Bonds pay periodic interest.
Gold: A Traditional Choice
Gold is often seen as a safe-haven asset. While it's not a growth asset, it can provide stability in times of economic uncertainty. Investing in gold can be done through physical purchase, gold ETFs, or sovereign gold bonds.


Stability: Holds value during market downturns.
Hedge Against Inflation: Maintains purchasing power over time.
Balancing Risk and Reward
Given your age and the ability to take on more risk, you might lean towards a balanced approach. A mix of equity (stocks and equity mutual funds) and debt (PPF, FDs) can offer growth potential while maintaining some stability.

The Role of a Certified Financial Planner
A Certified Financial Planner (CFP) can provide invaluable guidance. They can help tailor an investment strategy based on your goals, risk tolerance, and financial situation. Their expertise ensures your investments align with your long-term objectives, providing peace of mind.

Avoiding Common Investment Pitfalls
As you start your investment journey, be mindful of common mistakes:

Chasing Quick Returns: Investing is a marathon, not a sprint. Avoid schemes promising high returns quickly.
Lack of Research: Always understand where you’re putting your money.
Ignoring Costs: Be aware of fees and charges, as they can impact your returns.
Setting Up a Systematic Investment Plan (SIP)
Consider starting a SIP with mutual funds. It allows you to invest a fixed amount regularly, taking advantage of rupee cost averaging. This approach reduces the impact of market volatility and builds a disciplined investment habit.

Monitoring and Reviewing Your Investments
Investing isn’t a one-time activity. Regularly review and monitor your investments to ensure they align with your goals. Adjustments might be necessary as your life circumstances and market conditions change.

Embracing Financial Education
Continuous learning is crucial in investing. Read books, follow financial news, and consider online courses to enhance your understanding. Being well-informed helps you make better decisions and feel more confident about your investments.

Final Insights
Starting your investment journey at 18 with Rs 50,000 is a fantastic decision. You have the gift of time, and with careful planning and education, you can build a solid financial foundation. Diversify your investments, seek professional guidance, and stay committed to your goals. The road to financial independence begins with small steps, and you’re already on the right path.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

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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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