Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 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
Haresh Question by Haresh on Jun 03, 2024Hindi
Listen
Money

Sir I.am 54 yesrs , my son going abroad for studies 2 years , want atleast 250000 per month for him Was having office from 20 yrs which was on rent and i use to get not more than 35000 per month after tds abd maintenance, so sold that now worried as fd gives very less returns Thinking for mutual fund but worried At present have one od account too where can manage his studies, but office sell pymt 1 cr want some good returns so that can return at the end to od act Please help

Ans: Understanding Your Financial Needs
You are 54 years old, and your son is going abroad for studies.

You need Rs. 2,50,000 per month for the next two years for his education.

You sold your office property and have Rs. 1 crore.

You aim to invest this amount to get good returns.

You also have an overdraft (OD) account to manage expenses temporarily.

Evaluating Investment Options
Fixed Deposits (FDs)
Fixed Deposits are safe but offer low returns.

They provide guaranteed returns but may not meet your monthly needs.

FDs are suitable for conservative investors but might not generate sufficient monthly income.

Mutual Funds
Mutual funds can offer higher returns compared to FDs.

Equity mutual funds have potential for growth but carry higher risk.

Debt mutual funds are less risky and provide moderate returns.

Balanced or hybrid mutual funds invest in both equity and debt, balancing risk and return.

Creating a Balanced Investment Plan
To achieve your financial goals, consider a balanced investment plan.

This can include a mix of mutual funds and fixed deposits.

The goal is to generate monthly income while preserving capital.

Monthly Income from Investments
You need Rs. 2,50,000 per month for your son's education.

This translates to Rs. 30,00,000 annually.

Let's explore how to achieve this through investments.

Systematic Withdrawal Plan (SWP)
A Systematic Withdrawal Plan (SWP) from mutual funds can provide regular income.

SWP allows you to withdraw a fixed amount periodically.

This can help in generating the required monthly income.

Equity Mutual Funds
Equity mutual funds can offer higher returns.

They invest in stocks and have potential for capital appreciation.

However, they come with higher risk due to market volatility.

Debt Mutual Funds
Debt mutual funds invest in fixed income securities like bonds.

They are less risky and provide stable returns.

Debt funds can be a good option for generating regular income.

Creating a Diversified Portfolio
Diversification helps in balancing risk and return.

Consider investing in a mix of equity and debt mutual funds.

A balanced portfolio can provide growth potential and stability.

Emergency Fund
Keep a portion of your funds as an emergency reserve.

This ensures liquidity for unforeseen expenses.

An emergency fund provides financial security and peace of mind.

Consulting a Certified Financial Planner
Consider consulting a Certified Financial Planner (CFP).

A CFP can provide personalized advice based on your financial goals.

They can help create a comprehensive investment strategy.

Tax Efficiency
Tax planning is crucial to maximize returns.

Invest in tax-efficient instruments to reduce tax liability.

Consult a CFP for tailored tax-saving strategies.

Monitoring and Reviewing Investments
Regularly monitor your investments.

Review your portfolio to ensure it aligns with your goals.

Adjust investments based on market conditions and financial needs.

Calculating Required Returns
To generate Rs. 2,50,000 per month, let's calculate the required returns.

Assuming a 10% annual return, calculate the monthly withdrawal amount.

Creating a SWP Plan
Set up a SWP from mutual funds to get the required monthly income.

Choose a mix of equity and debt funds to balance risk and return.

Review the SWP plan periodically.

Balancing Risk and Return
Assess your risk tolerance before investing.

Equity investments have higher risk but potential for higher returns.

Debt investments are safer but offer lower returns.

Benefits of a Diversified Portfolio
A diversified portfolio reduces risk and enhances stability.

Investing in a mix of asset classes balances potential returns.

Diversification is key to a successful investment strategy.

Conclusion
At 54, planning for your son's education is critical.

A balanced investment strategy can help generate the required monthly income.

Consider a mix of mutual funds and fixed deposits.

Consult a Certified Financial Planner for personalized advice.

Regularly review and adjust your investments to stay on track.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

Listen
Money
Hi , I am working professional and income is 1 lakh per month . I have a son 10 years and wanted to plan for his education expenses in future.please help me which scheme is good for boy.
Ans: It's commendable that you are thinking ahead and planning for your son's education. Your dedication to his future is truly admirable.

Assessing Your Financial Goals and Timeline
Education Goals
You want to ensure your son has the best possible education. This may include school, college, and possibly postgraduate studies.

Timeline
Your son is 10 years old, so you have around 8 years until he starts college. This gives you a good timeframe to plan and invest.

Investment Options for Education Planning
Mutual Funds
Equity Mutual Funds
Equity mutual funds can provide high returns over the long term. Consider investing in diversified equity funds for growth.

SIP (Systematic Investment Plan)
Investing in mutual funds through SIPs allows you to invest a fixed amount regularly. This helps in rupee cost averaging and building a substantial corpus over time.

Child-Specific Mutual Funds
Balanced Allocation
Child-specific mutual funds typically have a balanced allocation between equity and debt. This helps in managing risk while aiming for growth.

Lock-in Period
These funds often come with a lock-in period that aligns with the child’s age and education needs. This ensures the money is used for its intended purpose.

Government Schemes
Sukanya Samriddhi Yojana (SSY)
Although SSY is specifically for girl children, it’s worth mentioning for parents with daughters. It offers a high interest rate and tax benefits.

Public Provident Fund (PPF)
Long-Term Growth
PPF is a safe investment with decent returns. It has a lock-in period of 15 years, making it suitable for long-term goals like education.

Tax Benefits
Investments in PPF are eligible for tax deductions under Section 80C. The interest earned is also tax-free.

Fixed Deposits and Bonds
Fixed Deposits (FDs)
Safety
FDs are safe investments with guaranteed returns. They are suitable for risk-averse investors.

Laddering Strategy
You can use a laddering strategy to spread your investments across different maturities. This ensures liquidity and stable returns.

Tax-Free Bonds
Regular Income
Tax-free bonds offer regular interest income. The interest earned is exempt from taxes, making it a good option for high-income individuals.

Education Savings Plans
Unit Linked Insurance Plan (ULIP)
Insurance and Investment
ULIPs offer a combination of insurance and investment. A part of the premium goes towards life cover, and the rest is invested in equity or debt funds.

Long-Term Benefits
ULIPs are suitable for long-term goals due to their lock-in period and potential for market-linked returns.

Creating a Diversified Portfolio
Asset Allocation
Allocate your investments across different asset classes to balance risk and return. Consider a mix of equity mutual funds, child-specific funds, PPF, FDs, and tax-free bonds.

Sample Allocation
Equity Mutual Funds (40%): For high growth potential
Child-Specific Mutual Funds (20%): For balanced growth and risk management
PPF (20%): For safety and tax benefits
Fixed Deposits and Bonds (20%): For guaranteed returns and safety
Regular Monitoring and Rebalancing
Portfolio Review
Review your portfolio regularly to ensure it aligns with your financial goals and risk tolerance. Rebalance your investments as needed to maintain the desired asset allocation.

Tax Planning
Efficient Tax Strategies
Consider the tax implications of your investments. Utilize tax-saving options like PPF. Plan your investments to maximize tax benefits and minimize tax liability.

Professional Guidance
Certified Financial Planner (CFP)
Consult a Certified Financial Planner to tailor an investment strategy based on your specific needs. Professional advice can help optimize your portfolio for education planning.

Conclusion
Planning for your son's education requires a diversified and strategic approach. Balance your investments across equity funds, child-specific funds, PPF, FDs, and tax-free bonds. Regularly review and adjust your portfolio to stay aligned with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

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

Asked by Anonymous - Jun 15, 2024Hindi
Money
Hello sir, I have invested in multiple funds @20k per month, I have some 5-6 l in FDs and a home loan of 40k per month....I am a single mother my son is now 17 and planning to send him for his ug studies preferably with 100 percentage scholarship to Germany....I want to know how effectively I can manage well as I earn @85k
Ans: It's heartening to see your dedication to securing a bright future for your son and managing your finances effectively. As a single mother with substantial responsibilities, your proactive approach to financial planning is commendable. Let’s delve into a detailed financial strategy that will help you manage your income, investments, and expenses effectively.

Understanding Your Current Financial Situation
You have a monthly income of Rs 85,000, an ongoing investment of Rs 20,000 in multiple funds, and a monthly home loan repayment of Rs 40,000. Additionally, you have Rs 5-6 lakhs in fixed deposits (FDs). Your son, now 17, aims for an undergraduate education in Germany with a full scholarship.

Budgeting and Expense Management
The first step is to create a detailed budget. This will help you manage your expenses and allocate resources effectively.

Track Your Expenses: List down all your monthly expenses including groceries, utilities, transportation, and any other miscellaneous costs.

Categorise Your Expenses: Divide your expenses into needs and wants. Needs are essential expenses like food, housing, and utilities, while wants are discretionary spending like dining out and entertainment.

Evaluate and Adjust: Assess each category to identify areas where you can cut back. Prioritise essential expenses and find ways to reduce discretionary spending.

Managing Your Home Loan
A home loan repayment of Rs 40,000 per month is a significant portion of your income. Here’s how you can manage it more effectively:

Prepayment Strategy: If possible, make partial prepayments towards your home loan. This will reduce your principal amount and interest burden. Use any bonuses, increments, or the surplus from your FDs for prepayments.

Interest Rate Review: Regularly review your home loan interest rate. If you find a better offer from another bank, consider refinancing your loan to get a lower interest rate.

Investment Analysis and Optimisation
Investing Rs 20,000 per month is a good strategy, but it's important to ensure these investments align with your goals and risk tolerance.

Diversified Portfolio: Ensure your investments are diversified across different asset classes. This reduces risk and provides balanced growth.

Actively Managed Funds: Actively managed mutual funds can outperform index funds due to professional management. The fund manager's expertise can help navigate market fluctuations.

Review Performance: Regularly review the performance of your investments. Ensure they are meeting your expectations and adjust your portfolio as needed.

Planning for Your Son's Education
Sending your son to Germany for his undergraduate studies with a full scholarship is a wonderful goal. However, it’s crucial to plan for other potential expenses.

Scholarship and Funding: Research all available scholarships and funding options. Encourage your son to apply to multiple scholarships to increase his chances of securing one.

Living Expenses: Even with a full scholarship, there will be living expenses such as accommodation, food, transportation, and books. Estimate these costs and start saving specifically for this purpose.

Education Loan: Consider taking an education loan if needed. Many banks offer loans with favourable terms for studies abroad. This can cover any shortfall and ease the financial burden.

Building an Emergency Fund
An emergency fund is essential for financial security. It acts as a safety net in case of unforeseen expenses.

Set a Goal: Aim to save at least six months' worth of living expenses. This would be around Rs 2,50,000 to Rs 3,00,000 considering your current expenses.

Utilise FDs: You already have Rs 5-6 lakhs in fixed deposits. Allocate a portion of this amount as your emergency fund. Keep this in a liquid FD or a savings account for easy access.

Securing Adequate Health Insurance
Health insurance is crucial to protect against medical emergencies. Ensure you and your son are adequately covered.

Comprehensive Coverage: Choose a comprehensive health insurance plan that covers major illnesses, hospitalisation, and critical care. Compare different plans for the best coverage and premium.

Family Floater Plan: A family floater plan can be cost-effective. It provides coverage for both you and your son under a single policy.

Top-up Plans: Consider top-up health insurance plans for additional coverage at a lower cost. These plans act as an extension to your base policy.

Planning for Long-term Goals
Long-term financial planning is essential to ensure a secure future for you and your son.

Retirement Planning: Start planning for your retirement early. Invest in long-term growth assets like mutual funds to build a retirement corpus. Aim to save at least 15-20% of your income towards retirement.

Life Insurance: Ensure you have adequate life insurance coverage. A term insurance policy can provide financial security to your son in case of any unforeseen events. Calculate the coverage amount based on your financial responsibilities and goals.

Avoiding Common Financial Pitfalls
It’s important to be aware of and avoid common financial mistakes.

High-interest Debt: Avoid taking on high-interest debt like credit card debt or personal loans. If you have such debts, prioritise paying them off as soon as possible.

Over-spending: Stick to your budget and avoid unnecessary expenses. Impulse purchases can derail your financial plans.

Insufficient Insurance: Ensure you have adequate health and life insurance coverage. Under-insurance can lead to significant financial strain in case of emergencies.

Seeking Professional Guidance
While self-education and disciplined saving are crucial, consulting a certified financial planner can provide personalised advice.

Tailored Financial Plan: A certified financial planner can help create a customised financial plan based on your goals, risk tolerance, and financial situation.

Regular Reviews: Schedule regular reviews with your financial planner to assess your progress and make necessary adjustments. This ensures you stay on track to meet your financial goals.

Final Insights
Your proactive approach to financial planning is truly commendable. Balancing investments, loan repayments, and planning for your son’s education requires careful management and strategic planning. By creating a detailed budget, managing your home loan effectively, optimising your investments, and securing adequate insurance coverage, you can achieve financial stability and security. Regularly review and adjust your financial plan to ensure it aligns with your evolving goals and circumstances. With determination and discipline, you can provide a secure future for yourself and your son.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jul 16, 2024Hindi
Listen
Money
Hi Sir, i am single mom i want to take 1 lakh investment plan for my son higher education who is going to become 6 yrs from November. please guide me which one is good ?
Ans: You want to secure your son's higher education.

A Rs. 1 lakh investment plan can help you achieve this goal.

Let's explore the best investment options.

Benefits of Mutual Funds
Mutual funds offer good returns over time.

They are managed by experts.

These funds can help you build wealth.

Choosing Actively Managed Funds
Actively managed funds have expert managers.

They aim for higher returns than index funds.

This can be beneficial for your long-term goal.

Regular Funds vs. Direct Funds
Regular funds have financial planners to guide you.

They provide professional advice.

Direct funds lack this personalized support.

Certified Financial Planners can help you make informed decisions.

Importance of SIPs
Systematic Investment Plans (SIPs) spread your investment over time.

This reduces risk and averages out the cost.

SIPs make investing easier and more disciplined.

Consider Child Education Plans
Child education plans are designed for education goals.

They provide tax benefits and assured returns.

These plans ensure funds are available when needed.

Reviewing Insurance Policies
If you hold LIC, ULIP, or investment cum insurance policies:

Consider surrendering them for better returns through mutual funds.

This can provide a higher corpus for education.

Diversifying Investments
Don't put all money in one place.

Diversifying reduces risk.

It ensures stable growth for your investment.

Final Insights
Investing Rs. 1 lakh wisely is crucial for your son's future.

Choose actively managed mutual funds and SIPs.

Consider regular funds for expert guidance.

Review and adjust your investment as needed.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Listen
Relationship
Hello, I went to kota in class 11 in 2019 I was a below average student there but as soon as my class 12 session was to be started I already started studying the syllabus and was determined that I will crack neet in my first attempt any how but suddenly Covid came and I went back to home ,online classes started but after two months suddenly my mental health started deteriorating and eventually I was rushed to various doctors and finally to a psychiatrist , after a few months of constant visits etc I got diagnosed with schizophrenia ,my medications started heavily impacting my sleep,apettite,emotions etc. my studies got completely stopped slowly slowly till neet 2021 I was in that situation that I can just only sit in exam with no preparation at all I scored very very less again next year as I was not much well I got very less in neet 2022 same story in neet 2023 too then for neet 2024 I started studying a little bit due to not studying properly since two three years I was not studying properly I just watched yt videoes on how to study that ,how to do this and that regarding studies I mean I only accumulated knowledge but didn't took actions which ruined my neet 2024 result too .now my parents enrolled me in a regular central government college in bsc zoology hons. Inside me too for some time I accepted it and tried to move on but unable to do that bcoz I wanted to be a doctor since childhood and also have keen interest in medical study it's almost time for neet 2025 but I am unprepared due to not arriving at a firm decision but now I am almost healthy and decided to prepare for neet 2026 will it be worth the decision? I want to try atleast once with my full potential and dedication rest results will be in god's hands Or should I not prepare and focus on anything else?
Ans: Dear Harsh,
Any competitive entrance exam requires focus, discipline and a lot of hard work. Unfortunately due to your circumstances, this hasn't been possible.
Your parents possibly don't want you to go through the disappointment all over again and feel that a regular degree will get your feet back on the ground. Now, whether you must write NEET again or not is a decision you will have to take BUT only if you have a firm plan in hand. You will need to get back all your focus and give it your best shot. Now, how important is this exam for you and why you want to take it, is something only you know. You will also need your parents' support in case you decide to go for it after all, so also consult with them. If you are able to inspire yourself, then you know what is to be done.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Asked by Anonymous - Jan 27, 2025Hindi
Listen
Relationship
I am 48, male, divorced from my wife. I have a 12 year old daughter. I am in love with a colleague in my office who is also married and seeking divorce. We have known each other for 3 years. Her husband recently found about us and has since decided to delay the divorce proceedings. He is not consenting for mutual divorce. While we love and support each other, this new development is now affecting our relationship. Her husband doesn't appreciate us meeting or talking at work or texting each other. He is unecessarily harassing her to make it seem like I am the villain and she should feel guilty about choosing to divorce at the age of 45. I don't see how it is my fault. But I don't want her to go through this pain of dealing with a guy who she doesn't want to live with. Please suggest what I can do to help.
Ans: Dear Anonymous,
What can you do other than just be by her side and simply understand her situation?
Her husband perhaps feels threatened by another male stepping in and hence delaying the divorce or not consenting to it will drag this whole thing...On your part, do not get so emotionally invested that it begins to take a toll on your peace of mind. This situation isn't going to be an easy one and it will just stretch your emotional band very thin; both for you and the lady. So, take it slow and it may help not being in the radar much so that the husband also backs off. It's sadly called - playing games.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Money
I am 62 years old.I have 1 Crore at present.I have health insurance for 25 Lakhs.I want to draw an amount of 50,000 per month through systematic withdrawal plan form mutual funds.After my life i want to give a huge Corpus to my son from this investments.Please advice me for my retirement planning.
Ans: 1. Understanding Your Financial Needs
You have Rs 1 crore at present.
You want Rs 50,000 per month through a systematic withdrawal plan (SWP).
The objective is to generate enough income to meet your monthly needs and create wealth for your son.
2. Withdrawal Strategy: SWP Setup
Systematic Withdrawal Plan (SWP) is a smart way to create a monthly income.
You need to ensure that the capital remains growing even while withdrawals happen.
Your goal of Rs 50,000 per month is about Rs 6 lakh per year.
Your Rs 1 crore corpus needs to generate this amount.
A balanced portfolio of equity and debt will help in managing risk while offering growth.
A well-planned SWP structure will ensure that your corpus grows, even with withdrawals.
3. Investment Strategy for Long-Term Stability and Growth
Equity investments are ideal for growth, especially in the first few years.
Debt funds provide stability, reducing volatility in your portfolio.
Mutual funds can be actively managed to meet both income and growth objectives.
Avoid index funds as they lack active management. They follow the market, so they cannot provide higher returns than actively managed funds.
Direct funds, while cheaper, have no expert oversight.
Investing through a Certified Financial Planner ensures you get expert guidance, which enhances returns.
4. Asset Allocation
A balanced asset allocation helps grow your wealth while ensuring stability.
Start with around 40% equity, 40% debt, and 20% in safer assets like gold.
Equities will generate higher returns over time, while debt will give stability.
Gold helps hedge against inflation and provides diversification.
Over time, gradually reduce equity exposure and increase debt allocation to preserve capital.
5. Managing Risk
Risk management is key in your case, especially with a fixed withdrawal amount.
You don’t want to dip into the principal too soon, so focus on risk-adjusted returns.
A combination of mid-cap, large-cap, and hybrid funds provides both stability and growth potential.
Debt mutual funds with shorter durations help balance the risk and returns.
A portion should be allocated to liquid funds or short-term debt funds for emergencies.
6. Health Insurance and Emergency Planning
You already have Rs 25 lakh health insurance, which is a great start.
With rising medical costs, you may need to consider increasing coverage over time.
Set aside an emergency fund equivalent to at least 6 months of expenses in liquid funds.
Ensure that your health insurance is comprehensive and covers critical illnesses.
7. Creating a Legacy for Your Son
You want to leave a substantial corpus for your son.
Your investments should be structured to grow over time, even after your lifetime.
A combination of equity, hybrid funds, and a small percentage in gold can work well.
To ensure the corpus grows, focus on reinvesting dividends and returns.
Also, consider setting up a trust or nominee to ensure your assets are transferred smoothly.
8. Tax Planning for Retirement
Focus on tax-efficient investments.
Long-term capital gains on equity funds are tax-free after a certain holding period.
Debt funds may have a tax advantage if held for more than 3 years.
Take advantage of tax-saving mutual funds if you are eligible for deductions.
Regular review of your tax liabilities helps in keeping your investments tax-efficient.
9. Monitoring and Rebalancing Your Portfolio
Regularly review your portfolio to ensure it’s in line with your retirement goals.
Rebalancing annually will keep your asset allocation on track.
Keep track of your SWP withdrawals and adjust based on market performance.
As you get closer to your desired age, you can reduce equity exposure and increase debt allocation.
10. Avoiding Certain Investment Options
Avoid investing in annuities, as they don’t provide flexibility.
Investment-cum-insurance plans like ULIPs should be reconsidered.
These have high charges and offer lower returns compared to mutual funds.
Insurance should be separate from your investments to achieve higher returns.
Consider surrendering any such policies and reinvesting the amount in mutual funds for better growth.
11. Health and Long-Term Care Planning
Long-term care and medical expenses should be factored in.
After retirement, you may not have a regular income, so insurance will help.
Consider building a portion of your portfolio to cover these needs.
12. Legacy Planning and Nomination
Ensure you have a clear will and nominations for all your assets.
Mutual funds and other investments should have a designated nominee.
This helps transfer assets to your son easily after your lifetime.
Consult a Certified Financial Planner to streamline this process.
13. Review Your Plan Regularly
Keep reviewing your financial goals annually.
Adjust your strategy if there are major changes in market conditions or personal goals.
Your retirement portfolio should be flexible to handle changes in market conditions.
Ensure that any new goals or needs are factored into your investment planning.
Final Insights
Your Rs 1 crore is a great base for building a secure retirement.
Balance your portfolio to generate income while keeping the principal intact.
Actively managed funds are the best choice for long-term wealth generation.
Regular monitoring and a disciplined SWP strategy will help meet your goals.
Build a legacy for your son by ensuring that your investments grow even after your lifetime.
Health insurance, tax planning, and estate planning should be integral to your strategy.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Listen
Money
Hello Ramalingam sir. Good day. I'm looking to invest 20L for long term (min 10Y). Please advise how should I diversify the same?
Ans: Investing Rs 20 lakh for the long term requires careful planning. A well-diversified portfolio balances risk and return. Below is a structured approach to diversification.

Understanding Long-Term Investing
Long-term investing builds wealth over time.

A well-diversified portfolio reduces risk.

Regular monitoring is essential for success.

Asset Allocation Strategy
Spreading investments across different asset classes is important.

Asset allocation should match risk tolerance and goals.

Rebalancing every year ensures stability.

Equity Investments for Growth
Equity investments provide higher returns over time.

Investing in quality mutual funds ensures professional management.

Actively managed funds perform better than index funds.

Mid-cap and small-cap funds can give high growth.

A mix of large, mid, and small caps balances risk.

Investing through a Certified Financial Planner ensures better fund selection.

Debt Investments for Stability
Debt investments provide steady returns.

They reduce overall portfolio risk.

Corporate bonds and debt funds offer better returns than fixed deposits.

Government bonds are secure but have lower returns.

A portion of capital in debt instruments gives stability.

Gold for Hedging
Gold acts as a hedge against inflation.

5-10% of the portfolio in gold is beneficial.

Sovereign gold bonds provide interest and capital appreciation.

Gold ETFs and digital gold are convenient options.

International Exposure for Diversification
Investing in global funds provides currency diversification.

Exposure to international markets enhances portfolio strength.

Developed market funds offer stability.

Emerging market funds provide growth opportunities.

Investing in REITs for Real Estate Exposure
Real estate investment trusts (REITs) provide real estate exposure.

They generate rental income and capital appreciation.

REITs are more liquid than physical real estate.

Avoiding Insurance-Based Investments
Investment-cum-insurance plans give poor returns.

ULIPs have high charges and low flexibility.

Insurance should be separate from investments.

Emergency Fund Allocation
Always keep an emergency fund ready.

Three to six months of expenses should be in a liquid fund.

This ensures financial security during unforeseen events.

Tax-Efficient Investing
Investing in tax-saving funds reduces tax liability.

Long-term capital gains from equities are tax-efficient.

Debt investments should be chosen based on tax benefits.

A Certified Financial Planner helps in tax-efficient planning.

SIP vs. Lump Sum Investment
Systematic investment plans (SIPs) reduce market timing risk.

Lump sum investments work well in market corrections.

A combination of SIP and lump sum is effective.

Regular Monitoring and Rebalancing
Portfolio performance should be reviewed yearly.

Rebalancing ensures asset allocation stays aligned with goals.

Market fluctuations require adjustments.

Final Insights
A well-diversified portfolio ensures wealth creation.

Equity, debt, gold, and international funds balance returns and risk.

A Certified Financial Planner helps in building a strong investment plan.

Monitoring investments ensures long-term success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Asked by Anonymous - Jan 27, 2025Hindi
Listen
Relationship
Anu mam, I am 21 about to graduate this year. So I am a single child and I just got to know that my parents are planning to separate. They are both seeing different people but none of them have cared to sit down and discuss this with me. I am old enough to make decisions. But I feel betrayed by my own parents. I don't have siblings or cousins with whom I can discuss this. I mean, what happens to me after my parents separate? Where will I stay? What about home? Both my parents are travelling or working late so we hardly spend time together at home to have a conversation. I have suggested several times that I want to talk but there is no response from either of them. There is always some urgent work to attend, some family event coming up and this gets brushed aside. I feel like I am not even their child any more. They have both mentally moved on... and I feel betrayed, lonely. I don't know what to do. Can you help?
Ans: Dear Anonymous,
I am sorry to hear that. It is never easy to understand when your parents are planning to separate and it leaves you with a lot of questions when left unanswered can lead to a very unsettled feeling.
Perhaps they are still wondering how to break the news to you. If they have been avoiding this topic, then it is evident that they are not ready to tell you or it's still in an awkward phase.
You are 21 and obviously there's no point hiding this from you anymore. Make a dinner plan outside of home where they will not be able to move about and cite urgent work etc. Mid-way through dinner, ask them...they may deny or one of them may walk out; but at least they know that you are aware and will want to talk about it eventually. The path to a conversation has opened then and then you can make a plan about how to go about it.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1471 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Listen
Relationship
Me 38ki hu mera bf 28ka wo mujhse sucha pyar krta hai shaadi bi Krna hai usko but bola ki me 2cr kmalu tb krunga t shaadi usne ghr me baat bhi ni ki apne na mere ki confirm krde ki shaadi t krunga or sagai krle usne BTech science kri hai wo mera office me lga jha selry 18k hai but maine kha ki tum apni qualification me hisaab se khi or job krlo jha 50k mile taki tum mere ghr walo se shaadi ki baat kr sko humre riste ko 4saal ho gye hai but usko m bhoat smjhaya ki khi or job krlo set ho jaye but ni ki or is office me job krha jha 18k milre hai usko fir bolta hai ki me 2cr acount me ho tb me Shaadi krunga tumse but mere ghr wale pressure krhe hai alg or ye koi faisla ni lera hai me kya kru
Ans: Dear Tiya,
Uske paas tumse zyaada waqt hai umar ke hisaab se isiliye woh yeh bol paa raha hai. Woh galat nahin na tum galat ho. Dono apni apni jagah sahi ho.
Aapko apni life mein kya chahiye? Shaadi aur ek pariwaar? Toh aapko yahi sochna chahiye ki kya yeh aapka bf samajhta hai aur kya is waqt woh yeh aapko de paayega. Kamaai ki baare mein bol rahaa hai woh; woh 2 Cr kitne saal aur lagenge? Kya aap intezaar karna chahoge? Agar nahin, toh is waqt woh bhi shaadi nahin karna chahte...toh aap unko majboor nahin kar sakte...Aaraam se soch vichaar kar lijiye aur ek nateeje par aana. Aap intezaar hi karte rahoge aur umar bhi nikla jaayega...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x