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Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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
shailesh Question by shailesh on Dec 23, 2023Hindi
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I am now 57 years old and working with a pvt. company having rs. 75000/- per month in hand excluding PF & PPF. Rs. 7 Lkhs FDRs is in banks/ post offices. no other expenses except routine daily expenses. i want to invest for 5 years in SIPs/ Shares / some other. Because I CAN do job only maximum by 5 years.

Ans: As you approach the next phase of your life, it's natural to seek avenues for financial security. Your diligent savings in FDRs reflect your prudent approach to money management. Considering a 5-year investment horizon, SIPs and shares offer potential for growth. However, assess your risk tolerance and consult a Certified Financial Planner to tailor a strategy aligned with your goals. Remember, investing is about balancing risk and reward. Embrace this transition with confidence, knowing you're taking proactive steps towards a secure future. Your commitment to financial planning is commendable, and with careful consideration, you can navigate this journey with ease.
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  |6986 Answers  |Ask -

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

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My age is 57 years old. You may please advise me to invest in some SIPs of Rs. 15000/- per month for 5 years.
Ans: starting an SIP at 57 is a commendable step towards securing your financial future. Here’s a thoughtful approach tailored for you:

Risk Assessment: At this stage, capital preservation becomes paramount. Opt for balanced funds or hybrid funds that provide a blend of equity and debt. This offers growth potential while cushioning against market volatility.
Asset Allocation: Diversify your SIPs across asset classes to spread risk. Consider allocating a portion to equity for growth and the remainder to debt for stability.
Tenure Consideration: A 5-year SIP is relatively short-term in the investment horizon. However, it's essential to align with your retirement plans. Ensure the chosen funds have a consistent track record over this period.
Tax Efficiency: Look for tax-saving SIPs under Section 80C, if you haven’t exhausted the limit. This can provide tax benefits while growing your wealth.
Periodic Review: Regularly monitor the performance of your SIPs. If any fund underperforms consistently, consider switching to a better-performing fund.
Stay Informed: Keep yourself updated with the market trends and financial news. This helps in making informed decisions and staying ahead of potential risks.
Emergency Fund: Ensure you have an emergency fund equivalent to 6-12 months of expenses. This will provide a financial cushion during unforeseen circumstances without liquidating your investments.
Remember, the goal is not just to invest but to invest wisely. It's essential to strike a balance between growth and stability, ensuring your investments align with your financial goals and risk tolerance. Your commitment to investing at this stage reflects prudence and foresight. Best wishes for your investment journey!

..Read more

Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

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Hi I am 43, having salary of Rs. 55k per month. Want to invest in SIP of Rs. 5k for 17 years. Pls suggest for long term.
Ans: You are 43 years old and want to invest Rs. 5k per month in a SIP for 17 years. This is a wise decision for building a substantial corpus over time.

Benefits of SIP
Disciplined Investing: SIP encourages regular savings.
Rupee Cost Averaging: Invests a fixed amount regularly, reducing the impact of market volatility.
Compounding Benefits: Long-term SIPs benefit from the power of compounding.
Recommended Investment Strategy
1. Actively Managed Mutual Funds
Professional Management: Managed by experts to optimize returns.
Flexibility: Adapt to market conditions and select best-performing stocks.
Diversification: Invest in a variety of sectors to spread risk.
2. Portfolio Diversification
Equity Funds: For higher returns, suitable for long-term goals.
Debt Funds: Lower risk, providing stability and consistent returns.
Balanced Funds: Combine equity and debt for moderate risk and return.
3. Regular Monitoring
Annual Review: Monitor your investments and make necessary adjustments.
Market Trends: Stay informed about market conditions to tweak your portfolio.
4. Professional Guidance
Certified Financial Planner: Seek advice from a certified financial planner for a tailored investment plan.
Goal Setting: Align investments with your financial goals for better results.
Analytical Insights
Long-Term Growth
Compounding: The longer the investment, the greater the compounding effect.
Market Performance: Equity markets tend to outperform other assets over the long term.
Risk Management
Diversification: Spreading investments across different funds reduces risk.
Active Management: Professional managers can adapt to market changes, reducing potential losses.
Key Considerations
Investment Horizon: 17 years is a good period for long-term investments.
Risk Appetite: Determine your risk tolerance before choosing funds.
Financial Goals: Clearly define your financial objectives and align your investments accordingly.
Final Insights
Investing Rs. 5k per month in a SIP for 17 years is a wise decision. Opt for actively managed mutual funds for better returns and professional management. Diversify your portfolio with a mix of equity, debt, and balanced funds. Regularly monitor your investments and seek professional guidance to align with your financial goals. This disciplined approach will help you build a substantial corpus over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6986 Answers  |Ask -

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

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I want to invest ?5k monthly SIP for 17 years for long term investments. Pls advice
Ans: Investing Rs 5,000 monthly in a SIP for 17 years is a wise decision. It is crucial to ensure that your investment strategy aligns with your long-term goals. Let’s evaluate and plan accordingly.

Importance of Long-Term Investments
Compounding Benefits: Long-term investments maximize the power of compounding.

Market Volatility: Longer horizons mitigate short-term market fluctuations.

Goal Achievement: Helps in achieving significant financial goals.

Investment Strategy
Equity Mutual Funds

High Growth Potential: Suitable for long-term wealth creation.

Professional Management: Managed by experts for better returns.

Actively Managed Funds

Benefits: Potential for higher returns than index funds.

Expertise: Managed by experienced fund managers.

Diversification

Asset Allocation: Diversify across different sectors and market caps.

Risk Management: Spreads risk and reduces the impact of market volatility.

Regular Monitoring
Annual Reviews

Performance Check: Regularly review fund performance.

Rebalancing: Adjust portfolio to align with changing market conditions.

Additional Investments
Increase SIP Amount

Income Growth: As your income grows, increase your SIP amount.

Enhanced Corpus: Higher contributions will result in a larger corpus.

Systematic Transfer Plan (STP)

Risk Mitigation: Gradually move from equity to debt funds as you near your goal.

Stability: Ensures stability of your investments.

Financial Discipline
Consistency

Regular Investment: Ensure timely and consistent SIP contributions.

Long-Term Vision: Stay invested despite market fluctuations.

Benefits of Using a Certified Financial Planner
Expert Guidance

Personalized Advice: Tailored investment strategies based on your goals.

Continuous Support: Regular updates and adjustments to your investment plan.

Disadvantages of Index Funds
Lower Flexibility

Fixed Portfolio: Less flexibility in changing market conditions.

Potential Underperformance: May underperform actively managed funds.

Benefits of Regular Funds
Professional Management

Expertise: Managed by professionals with extensive market knowledge.

Higher Returns: Potential for better returns compared to direct funds.

Final Insights
Stay Invested: Maintain your investments for the full tenure to maximize returns.

Professional Help: Consider working with a certified financial planner.

Regular Review: Monitor and adjust your portfolio as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

Asked by Anonymous - Oct 07, 2024
Anu

Anu Krishna  |1281 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

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

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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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