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Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Vaman Question by Vaman on Aug 21, 2023Hindi
Money

Sir I am 78 years old. I have no liabilities. I have a house worth two corores. I am living with my daughter and son in law. They're extremely well off. Since I am living with my daughter I have no expenses. This is my background. My assets are as follows. 1) PPF RS.20lakhs. 2)PMYY SCHEME. 15Lakhs. 3) Fixed deposit 15 lakhs 4) Health insurance both 5lakhs each 5 ) Immovable property worth 5lakhs 6) Gold bond maturity value 1lakh 7) Physical gold and silver 20 lakhs 8) Shares worth 100000 rs.asof today 9) Mutual fund worth rs.18 lakhs as of today. Below l am giving details of the funds most of them purchased on issue price all regular growth. 1) Aditya Birla Sun Life focused equity fund Units 1200 2) DSP world gold fund growth regular Units 500 3) Franklin India flexi cap fund growth regular. Units 35 4) HDFC banking and financial services fund growth regular. Units 1160 5) HDFC defence fund growth regular Uni1000 6) HDFC mid cap fund growth regular Units 260 7) HDFC flexi cap fund growth regular Units 25 8) Hsbc value fund growth regular Units 430 9)Hsbc elss fund growth regular Units 490 10) Icici prudential Pharma and health care fund growth regular Units 780 11) Icici prudential India opportunities fund growth regular. Units 2200 12) Icici prudential manufacturing fund growth regular Units 3000 13) Icici prudential flexicap fund growth regular. Units5000 14) Icici prudential housing opportunities fund growth regular Units 2500 15) Icici prudential balanced advantage fund growth regular. Units. 550 16) Icici prudential psu equity fund growth regular. Units Units 2700 17) Kotak global innovation fund growth regular. Units 1200 18) Kotak international REIT fund growth regular. Units 500 19 ) Nippon india low duration fund growth regular. Units 10 20) Sbi blue chip fund growth regular Units 1000 21) Sbi infrastructure fund growth regular Units 500 22) Sundaram focused equity fund growth regular. Units 1300 23) Tata mid cap fund growth regular plan growth. Units 335 units 24)iUti nifty 500 fifty index fund growth regular. Units 18050 25)Uti flexi cap fund growth regular Units 1020 26)Uti small cap fund growth regular Units 5000 27) Uti master share units regular plan Units 210 28) Uti mid cap fund growth regular Units 700 29) Hdfc transportation fund growth regular Units 2500 Opinion required 1) I want to exit Kotak global innovation fund and Kotak international REIT fund and Dsp world gold fund. 2) I want to start 4 SIP of2500 rs. per month. a) Sbi blue chip fund b) Uti flexicap fund c) Multi asset fund of Hdfc or lclcl or Aditya Birla Sun Life d) not sure which fund Request you to suggest how to make best review of my investment. I would prefer to invest indirect growth instead of regular growth. Would it be convenient if invest inSWP or overnight fund or floater fund and give standing instruction to to invest in SIP? How to track my investments on daily basis ? Waiting eagerly for your reply. Your's sincerely PS: All nomination in the name of my wife. She is equally well invested in Bank FD PMVYYOJANA AND PPF and MF (very small amount of 5lakhs as today.

Ans: It seems you have a diversified investment portfolio, which is commendable. Here are some suggestions based on your requirements:

Exit Strategies:

Exiting funds that no longer align with your investment goals or if you wish to reduce exposure to certain sectors is a prudent move.
New SIP Allocation:

Starting SIPs in well-established funds across different categories such as large-cap, flexicap, and multi-asset funds can offer diversification and potential growth.
SWP or Systematic Withdrawal Plan:

SWP can be a suitable option if you wish to generate regular income from your investments. Consider reinvesting the redeemed amount into a liquid or floating rate fund, depending on your liquidity needs and risk tolerance.
Tracking Investments:

Utilize online platforms provided by mutual fund houses or third-party financial aggregators for tracking investments. Maintain a consolidated spreadsheet or use investment tracking apps for easy monitoring.
Nomination and Legal Aspects:

Ensure all investments and assets have proper nomination details and legal documentation. Keep your spouse informed about the investment details and maintain organized documents for easy access.
Consult a Financial Advisor:

Seek guidance from a qualified financial advisor to tailor your investment strategy according to your financial goals and risk tolerance.
Prioritize risk management and ensure your investments align with your objectives. Regularly review your portfolio's performance and make adjustments as needed to stay on track towards achieving your goals.
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  |6287 Answers  |Ask -

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

Asked by Anonymous - Jul 01, 2024Hindi
Money
I am 32 years old. In hand Salary is 130,000. Below is break up of expenses - 1.Home Loan EMI = 44,000. 2. Monthly Assistance to Parent = 7,000 3. Other Household Expenses = 20,000 4. Health and Term Insurance = 3500 Investments = Equity = 6.5 lakh (Mine) + 2Lakh ( Wife) Mutual Fund = 8.5 Lakh (Mine) + 1 lakh (Wife) Emergency Fund = 2 lakh invested in FD. Below are Mutual funds which we own Monthly Investment in Mutual Fund 15,500 approx (mine) + 11,000 (Wife) Mine Mutual fund SIP = 1. Parag Parikh Flexi Cap = Rs.2200 2. DSP Midcap = Rs. 3300 3. SBI small Cap = Rs. 1,000 4. Motilal Oswal Focused Fund = Rs. 2,000 5. Mirae Asset ELSS Saver Fund = Rs. 2,500 6. Axis Blue Chip = ?4500. Wife Sip = 5 Sip each of 2000 month = 10,000 1. QUANT small Cap 2. Quant Flexi Cap 3. SBI Magnum Midcap 4. ICICI PRUDENTIAL BSE SENSEX INDEX FUND 5.HDFC Retirement Savings Fund Wife Invest monthly 1,000 in gold bees and 2,500 in Post office RD. My target - 1. Payoff my home loan of 54,000,00 in next 7 years 2. Retirement corpus at 60 = 4 Cr 3. Child 1 = Marriage and Education - 1.5 Cr 4. Child 2 = Marriages & education = 1.5 Cr 5. Buy Car of around 10 lakh in next 2 years. Need you suggestions how should I achieve my target. I have surplus of 20,000 every month should I invest in Equity of increase contribution to Mutual Fund.
Ans: Firstly, commendations on your meticulous planning and clear financial targets. You've made substantial investments and have a structured approach to your finances. Let’s dive deeper into how you can achieve your ambitious goals.

Current Financial Position
Your monthly income is Rs. 130,000, and you have a surplus of Rs. 20,000 after accounting for all expenses. You have diversified investments across equities, mutual funds, and an emergency fund, showcasing a balanced approach. Here's a detailed breakdown of your expenses and investments:

Home Loan EMI: Rs. 44,000
Monthly Assistance to Parents: Rs. 7,000
Household Expenses: Rs. 20,000
Health and Term Insurance: Rs. 3,500
Total Monthly Expenditure: Rs. 74,500
Surplus: Rs. 20,000
Investments
Your investment portfolio is diversified, with significant investments in equity, mutual funds, and fixed deposits. Here’s a summary:

Equity Investments: Rs. 6.5 lakh (yours) + Rs. 2 lakh (wife)
Mutual Funds: Rs. 8.5 lakh (yours) + Rs. 1 lakh (wife)
Emergency Fund: Rs. 2 lakh in FD
Goals
You have set clear financial goals:

Pay Off Home Loan: Rs. 54 lakhs in 7 years
Retirement Corpus: Rs. 4 crores by age 60
Child 1 Education and Marriage: Rs. 1.5 crores
Child 2 Education and Marriage: Rs. 1.5 crores
Buy a Car: Rs. 10 lakhs in 2 years
Debt Management
Your primary debt is the home loan of Rs. 54 lakhs. Paying off this loan in 7 years requires disciplined repayment.

Current EMI: Rs. 44,000
Target: Pay off Rs. 54 lakhs in 7 years
To achieve this, consider making additional principal payments using your surplus and any bonuses or windfalls. This will reduce the principal faster and save on interest.

Investment Strategy
To achieve your financial goals, let’s review and adjust your investment strategy.

Mutual Funds
You and your wife have invested in a mix of large-cap, mid-cap, and small-cap funds. This is a good strategy for long-term growth.

Parag Parikh Flexi Cap, DSP Midcap, SBI Small Cap, Motilal Oswal Focused Fund, Mirae Asset ELSS Saver Fund, Axis Blue Chip: Continue with these SIPs. They offer a good balance of growth and stability.

Wife’s SIPs in QUANT Small Cap, Quant Flexi Cap, SBI Magnum Midcap, ICICI Prudential BSE Sensex Index Fund, HDFC Retirement Savings Fund: These funds provide a diversified exposure.

Given your surplus, you can increase your SIP contributions. For instance, an additional Rs. 5,000 per month can be split into your existing funds to maximize growth.

Equity
Equity investments offer higher returns but come with higher risk. Your current equity investments (Rs. 6.5 lakh) should be monitored and managed actively.

Emergency Fund
An emergency fund of Rs. 2 lakh in FD is a good start. Ensure this fund is accessible and covers at least 6 months of expenses.

Child Education and Marriage
You aim to save Rs. 1.5 crores each for your children's education and marriage.

Current Investments: Diversify into child-specific mutual funds or balanced funds.
Monthly Contribution: Increase SIPs in balanced or child-focused funds.
Retirement Planning
Your target is Rs. 4 crores by age 60. Given your current age (32), you have 28 years to achieve this goal.

Increase SIP Contributions: Utilize your surplus to increase your SIP contributions.

Equity Exposure: Maintain a balanced portfolio with a mix of equity, debt, and mutual funds.

Car Purchase
You plan to buy a car worth Rs. 10 lakhs in the next 2 years. To achieve this:

Short-term Investments: Utilize short-term debt funds or recurring deposits to save for this purchase.
Investment Allocation
Let’s allocate your Rs. 20,000 surplus effectively:

Mutual Funds: Rs. 10,000 additional SIP in existing funds.
Equity: Rs. 5,000 for direct equity investments.
Short-term Savings: Rs. 5,000 in short-term debt funds or RDs for car purchase.
Insurance Coverage
Ensure your insurance coverage is adequate:

Health Insurance: Rs. 10 lakhs cover for unforeseen medical expenses.
Term Insurance: Ensure it covers at least 10 times your annual income.
Evaluating Index Funds
You’ve invested in an index fund (ICICI Prudential BSE Sensex Index Fund). While index funds offer low-cost exposure, they might not provide the superior returns of actively managed funds. Actively managed funds can outperform the market with expert fund management, especially in volatile markets. Consider shifting to actively managed funds for better returns.

Direct vs. Regular Funds
You might consider investing in direct funds for lower expense ratios. However, regular funds through a Certified Financial Planner offer professional advice and better management of your portfolio. The expertise of a CFP ensures your investments are aligned with your goals and risk profile.

Final Insights
Achieving your financial goals requires disciplined savings and strategic investments. Utilize your surplus effectively, diversify your portfolio, and maintain a balance between risk and return. Regularly review and adjust your investments to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 14, 2024

Asked by Anonymous - Jul 14, 2024Hindi
Money
Hi, I am 36 year old and employed in Govt sector. I have three kids of 9,2&1 years. I have monthly Gross salary of ?2.4 lakhs before tax. I don't have any liabilities in form of loans or EMI. My assets are as follows:- Provident fund - ?70 lakhs Monthly contribution to PF - ?40000/- I have 06 mutual funds with monthly subscription of ?10000 each. Present value of MF is ?23 lakhs. My funds are :- 1. Kotak Emerging Equity Fund 2. SBI Small Cap Fund 3. Parag Parikh Flexi Cap Fund 4. Mirae Asset ELSS Tax Saver Fund 5. Quant Small Cap Fund 6. Edelweiss Balanced Advantage Fund I have an insurance cover policy of Rs 2 Cr from HDFC. I have an additional insurance cover of ?1.25 Cr from my organisation. I have Sukanya Samridhi Yojna subscription for my 2 eldest kids at monthly subscription of ?12500/-. I have a "Promise for Growth Care" investment plan from "Canara Oriental HSBC" At a monthly subscription of ?12500/- with payment tern of 10 years and coverage for 20 years (insurance cover ?15 lakhs included in it). I have a Bajaj Allianz "Goal Assure II" plan for monthly subscription of ?5000/-. Payment term 5 years and coverage for 20 years (insurance cover of ?6 lakhs covered). I have ?25 lakhs cash in hand. Out of these I am planning to invest ?20 lakhs in Sovereign Gold Bonds. I wish to retire at 56 years. Please suggest me about any requirement to change/ reallocate any investments from existing ones. Will this investment strategy hold me good for requirement during higher education of kids and their other requirements like marriage etc after 20 years. Please suggest any changes if required. Thank you. Regards
Ans: You've done a commendable job in setting up a diverse investment portfolio and securing insurance coverage. Let's evaluate your current strategy and suggest improvements.

Provident Fund and Insurance
Your provident fund balance of Rs. 70 lakhs and a monthly contribution of Rs. 40,000 is a strong foundation for retirement. Your insurance coverage of Rs. 2 crore from HDFC and an additional Rs. 1.25 crore from your organisation ensures financial security for your family.

However, evaluating the insurance cover every few years is advisable to ensure it remains adequate as your financial responsibilities grow.

Mutual Funds
Your six mutual funds with a monthly subscription of Rs. 10,000 each and a present value of Rs. 23 lakhs are diversified across different categories.

This is a balanced approach, but it's essential to review the performance of each fund annually. Underperforming funds should be replaced with better-performing ones to maximize returns.

Sukanya Samridhi Yojna
Investing in Sukanya Samridhi Yojna for your two eldest children is a smart move. The Rs. 12,500 monthly contribution ensures a secure future for your daughters.

This scheme provides tax benefits and a high interest rate, making it an excellent long-term investment for your children's education and marriage.

Investment Plans
The "Promise for Growth Care" and "Goal Assure II" plans offer insurance and investment benefits. However, these plans often come with high costs and lower returns compared to mutual funds.

Consider surrendering these policies and redirecting the funds to better-performing mutual funds or other investment avenues. This approach can provide higher returns and better liquidity.

Cash in Hand and Sovereign Gold Bonds
Holding Rs. 25 lakhs in cash is a good safety net. Planning to invest Rs. 20 lakhs in Sovereign Gold Bonds is a sound decision. Gold is a hedge against inflation and adds diversification to your portfolio.

However, ensure that you maintain an emergency fund equivalent to at least six months of your expenses before making this investment.

Retirement Planning
You plan to retire at 56, which gives you 20 years to build your retirement corpus. Your current investments in provident funds, mutual funds, and insurance plans are a solid start.

Regularly reviewing and adjusting your portfolio can help you stay on track to achieve your retirement goals.

Increasing Mutual Fund Contributions
Consider increasing your mutual fund contributions as your salary grows. This will help you build a more substantial corpus over time.

Systematic Investment Plans (SIPs) are an excellent way to invest in mutual funds, providing the benefits of rupee cost averaging and compounding.

Diversifying Investments
While your current investments are well-diversified, consider adding more asset classes to your portfolio. Equity-linked savings schemes (ELSS), debt funds, and balanced advantage funds can provide better risk-adjusted returns.

Tax Planning
Utilize tax-saving instruments like ELSS, Public Provident Fund (PPF), and National Pension System (NPS) to maximize your tax benefits.

These investments not only provide tax deductions under Section 80C but also offer good returns and long-term benefits.

Children's Education and Marriage
Planning for your children's higher education and marriage requires substantial funds. The Sukanya Samridhi Yojna and your mutual fund investments are excellent steps towards this goal.

Education Planning
Estimate the future costs of education considering inflation. Invest in a mix of equity and debt instruments to build a corpus that can meet these expenses.

Marriage Planning
For your children’s marriage, consider long-term investments that provide safety and growth. Fixed deposits, recurring deposits, and balanced funds can be good options.

Reviewing and Rebalancing
Regularly reviewing and rebalancing your portfolio is crucial to ensure it aligns with your goals. Market conditions, financial responsibilities, and life stages change over time.

Annual Review
Conduct an annual review of your investments. Evaluate the performance of your mutual funds, insurance policies, and other investments.

Rebalance your portfolio to maintain the desired asset allocation and risk level.

Financial Advisor Consultation
Engage with a certified financial planner for professional advice. They can provide personalized recommendations and help you navigate complex financial decisions.


I understand the responsibilities of planning for your children's future while securing your retirement. Your commitment to financial planning is admirable.

Balancing short-term needs with long-term goals can be challenging, but your disciplined approach will yield positive results.

Final Insights
You've laid a strong foundation for your financial future. By making a few strategic adjustments and regularly reviewing your portfolio, you can ensure that your investments align with your goals.

Stay committed to your financial plan, and you will achieve your objectives of securing your children's future and enjoying a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

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

Asked by Anonymous - Jul 15, 2024Hindi
Money
Good day Sir, I am 37 years old, I own a 2 bhk house in panvel and car which is debt free. Currently I do not have any ongoing loan. I am a seafarer , I sail for around 7 months on ships and 5 months on land, while on land I do not have any income. My salary package is 65 lakhs/year. My investments are as below. I wish to be invested in LIC for 15 years till the maturity date. LIC FAMILY PLAN - Investment started in Au2024 - with quaterly plan total of 57700/quater 1. LIC JEEVAN LABH 836 SELF 2. LIC JEEVAN LABH 836 WIFE 3.LIC JEEVAN TARUN -834 1ST CHILD 4. LIC JEEVAN TARUN - 834 2ND CHILD Above is for 15 years for self and wife and for children it is 20 years maturity date. Mutual funds - Planning to be invested only for 10 years. 1.HDFC LIFE SAMPOORN NIVESH-HEFC FLEXI CAP FUND , TAKEN FOR SLEF -INVESTING 2.0LAKHS/YEAR FOR 5 YEARS., INVESTMENT STARTED IN JAN 2024, WITH 5 YEARS LOCKIN PERIOD. 2. MAX LIFE NIFTY SMALLCAP QUALITY INDEX FUND. TAKEN FOR WIFE. INVESTED 2.0 LAKHS/ YEAR INVESTED IN JAN 2024 WITH 5 YEARS OF LOCKIN PERIOD. 3.SBI CONTRA FUND REGULAR GROWTH - LUMPSUM , INVESTED 50K IM DEC 2023. SIP's Planning to be invested for 10 to 15 years 1.Kotak small cap fund 2500/ month 2.axis bluecip fund 2500/ month 3.Edelwesis mid cap fund 2500/ month 4.Canara MF 2500/Month 5.ICICI Prudential INDIA opportunities fund 2500/ month 6.ICICI Prudential Blue chip fund 2000/month 7.Tata small cap fund 3000/ month 8 Tata ethical fund regular plan growth 5000/month.. 9.SBI large and midcap regular growth 800/ week 10.SBI small cap fund direct growth 10000/month 11.SBI Automative opportunities fund dire t plan growth 5000/ month. Sharemarket Parga parek 50k INR shares. Crypto- 1 lakhs investment. Request you to reveiw my investment, I am planning to have a corpus of 10 crore till i retire, which i will be planning till the age of 45 to 50 years. I have 2 son, current age are 7 years and 5 years. Also want to build a good corpus for there education. Also in next 2 years i will be planning to build emergency funds around 10 lakhs, and that i wish to park in liquid funds, so i will be able to get some minimum growth. I also have mediclaim of 40k per year for my family. Term plan for 2 cr. As per my retirment planning is the above investment enough to grow 10cr in next 13 years. Thanks and warm regards Ramiz
Ans: Hello Ramiz,

It's great to see your detailed investment strategy. You have made significant strides in planning for your future and your family. Your current investment portfolio is diverse and well-structured. Given your goal of accumulating a corpus of Rs 10 crore by the age of 50, let's review your investments to ensure they align with your objectives.

Current Investment Overview
Life Insurance Policies
You have invested in several LIC plans for yourself, your wife, and your children. While LIC policies provide financial security and maturity benefits, they often offer lower returns compared to other investment avenues.

Mutual Funds
Your mutual fund investments are a mix of equity and hybrid funds, with a focus on long-term growth. This is a good approach as equity mutual funds tend to provide higher returns over the long term.

Systematic Investment Plans (SIPs)
Your SIPs are spread across various fund categories, including small cap, mid cap, and blue chip funds. This diversification helps mitigate risk while aiming for significant returns.

Stock Market and Cryptocurrencies
Investing in the stock market and cryptocurrencies adds another layer of diversification. However, these investments come with higher volatility and risk.

Emergency Fund and Insurance
Planning to build an emergency fund of Rs 10 lakhs in liquid funds is wise. Your mediclaim policy and term plan ensure financial protection for your family.

Review and Recommendations
Life Insurance Policies
LIC policies are secure but may not offer the best returns for wealth creation. Considering the lock-in period and the lower returns, you might want to reassess these investments.

Consider Surrendering Policies: You could surrender some LIC policies and reinvest the proceeds into mutual funds or SIPs with higher growth potential. This can accelerate your corpus building.
Mutual Funds
Your mutual fund investments are generally well-chosen. However, let's focus on maximizing their potential.

Actively Managed Funds Over Index Funds: Actively managed funds have the potential to outperform the market, unlike index funds which mirror market performance. Your mutual funds should remain actively managed to benefit from professional expertise and potential higher returns.

Regular Plans Over Direct Funds: Regular plans offer access to professional advice through Certified Financial Planners (CFP), which can be beneficial for making informed decisions and navigating market complexities.

SIPs
Your SIP investments are well-diversified, which is excellent for balancing risk and return. Here are some additional thoughts:

Continue Diversification: Your SIPs in small cap, mid cap, and blue chip funds ensure a balanced risk profile. Continue this strategy to maintain growth and stability.

Review Performance Regularly: Keep an eye on the performance of your SIPs and make adjustments as needed. This ensures your investments stay aligned with market conditions and your goals.

Stock Market and Cryptocurrencies
While these are high-risk investments, they can yield high returns. Here's how to approach them:

Limit Exposure: Given their volatility, limit your exposure to stocks and cryptocurrencies to a small percentage of your overall portfolio. This will protect your capital while allowing for potential growth.

Stay Informed: Keep abreast of market trends and news related to your stock and crypto investments. This will help you make timely decisions and mitigate risks.

Emergency Fund
Building an emergency fund in liquid funds is a sound strategy. Liquid funds provide easy access to your money and offer some returns.

Regular Contributions: Make regular contributions to your emergency fund until you reach your Rs 10 lakhs goal. This disciplined approach ensures you are prepared for any financial contingencies.
Insurance
Your current insurance coverage seems adequate. The mediclaim policy and term plan provide necessary financial protection.

Review Coverage: Periodically review your insurance coverage to ensure it meets your family’s needs. Adjust the coverage if necessary to keep pace with inflation and changing life circumstances.
Planning for Children's Education
Building a corpus for your children's education is crucial. Here are some strategies:

Invest in Child-specific Plans: Consider child education plans that offer a mix of equity and debt. These plans are designed to provide significant returns over the long term and ensure funds are available when needed.

Regular Investments: Continue regular investments in SIPs and mutual funds. This will help grow the education corpus systematically.

Consider Education Loans: If required, education loans can supplement your savings and ensure your children receive the best education without financial strain.

Achieving the Rs 10 Crore Goal
To reach your goal of Rs 10 crore by the age of 50, focus on the following strategies:

Increase Investment Amounts
Boost SIP Contributions: Gradually increase your SIP contributions as your income grows. This can significantly enhance your corpus over time.
Optimize Portfolio Returns
High-growth Investments: Allocate a portion of your portfolio to high-growth investments like mid-cap and small-cap funds. These have the potential to offer higher returns.
Monitor and Rebalance
Regular Review: Conduct regular reviews of your investment portfolio. Rebalance it periodically to ensure it remains aligned with your goals and risk tolerance.
Tax Planning
Utilize Tax-saving Instruments: Invest in tax-saving instruments like ELSS (Equity Linked Savings Scheme) to reduce your tax liability and increase your effective returns.

Tax-efficient Withdrawals: Plan your withdrawals in a tax-efficient manner to maximize the amount available for your goals.

Final Insights
Your current investment strategy is robust and well-diversified. By making a few adjustments, you can optimize your portfolio to achieve your financial goals. Focus on high-growth investments, regularly review your portfolio, and ensure your insurance coverage is adequate. With disciplined investing and strategic planning, you are well on your way to achieving your Rs 10 crore target and securing your family’s future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |296 Answers  |Ask -

Dating, Relationships Expert - Answered on Sep 13, 2024

Relationship
6monsth back I started talking to one of my colleague, he is attractive by his nature. Almost everyone likes him. he is intelligent, funny, etc.... In calls he used to tell me about his family, his friends, his thoughts, also about the girl (Aliya) whom he liked a lot for 6years (they belong to same village), but she rejected and told that he is her friend only. He told her that he may get feelings for her if they both remained as friends, so better stop talking. But she insisted that they both need to be friends and continue talking. I felt like may be she needed emotional support that's why she insisted. After coming to Jaipur, Aliya started talking to another man named Jitesh. But my colleague used to feel like a third wheel and started keeping distance. Then also she told that they are just friends and he need not distant himself. She always wanted him to give her the first priority. He also feared that she might get upset if he don't give her 1st priority. They used to talk a lot on phone and share everything. One day he brought her to our bay where we both used to sit and work. that day I really felt like I was a third wheel. I felt very bad.. cried for few days. And decided not to talk to him from then on because I didn't want to cry anymore. But he kept trying to have a talk with me. One day he almost cried because I was ignoring him. I couldn't see him like that and also I felt guilt about my behaviour(my intention was not to hurt him but to save my tears). I couldn't help but starting talking to him. He used to mention to me whenever he used to talk to her. and everytime I used to feel very bad. We started talking a lot after few weeks. Whenever I didn't receive proper response from him I used to become very anxious waiting for his reply and cried a lot. But when he starts talking again I used to feel normal. I never wanted to get into relationships, so everytime I used to tell him directly or indirectly about it. But still he continued to talk to me. One day he called me and said that Aliya is in love with Jitesh. He said being a friend he is very happy for her but after sometime he also said that if you also love someone I will stop talking with you also. I understand that he is little sad that he cannot talk to Aliya as he used to talk before because she is in love with someone else. We continued to talk and kept talking a lot. One day I felt like I am too much emotionally getting connected to him and felt like these long talks need to stop. So I asked him saying that I didn't get clarity. Then he opened up and proposed me. I thought for a day and I felt he is also a good person and said yes to him. Then on he became my world. Then on he started talking little less with other girls. One day Aliya called him saying that Jitesh had an incident where everyone thought he was drowned but he came back safely. She needed emotional support and asked him to come to office. She also said she that one of her colleagues didn't bring lunch and she don't have enough food to give her so she asked my colleague to prepare some food and bring it to office. At first my colleague said no thinking of me but Aliya convinced him emotionally saying that will you leave friends if you get a girlfriend and so he prepared lunch and took it to office. That day when he told me all these I felt devastated, I felt really insecured and cried a lot that is our first fight regarding her. He told me that if you say no I will stop talking to her. She again called and asked my colleague that what was my reaction for all these... he kept silent she guessed what might have happened and told that I understand how she might have felt and will not ask him to bring food to office anytime. Then on fights started increasing between us regarding her. whenever we three had a conversation i felt like thirdwheel and felt he is showing more attention towards her, more care towards her. again a fight. Like that fights started increasing. At first he used to listen to me, but after some days he started saying like my thinking is wrong. I even told him how much I cried but he didn't bothered. I never wanted to break their friendship so I never wanted to ask him to stop talking(even though he gave me that option). I only wanted him to give me my importance but I still feel he shows equal care to both of us. Then how am I different? Later on in our every fight, he started supporting her this gave me more pain. One day he said If I leave her for you, then I may leave you for someone else, that is not my character( this is contrary to what he said previously 'I will stop talking to her if i don't want to'). I cried a lot, I don't have much friends I couldn't share this with anyone.... every moment he is only coming to my thoughts and whenever fights happen due to Aliya, I get disturbed a lot... unable to concentrate on my work... not getting interest to do anything. One day out of anger I said just stop talking to her then his expressions totally changed he became hesistant , he became very sad and said I need sometime and don't know how much( his expression is contrary to what he said 'It doesn't bother me much If I don't talk to Aliya' ). He is that much emotionally connected to her. After 5mins I pinged him saying that I am feeling very guilt about the decision and ask him not to stop talking to her. I understood finally that he still thinks I am wrong and I am tired of fighting. One day when I was very emotional I told him that I will no more bring Aliya topic in our discussion and asked him to do whatever he wants. After this, Whenever Aliya calls him or he call her he used to tell me... sometimes I felt very bad... sometimes I tried to ignore as if it didn't bothered me but didn't start any argument with him. After few days he even stopped telling me if she called him or not also. When he was not telling about Aliya's conversations I thought he understood my feelings and reduced talking with her. but one time accidently my colleague's friend told about the small conversation that my colleague and Aliya had, that's how I came to know that they had a conversation but he didn't tell me. I felt very bad, really very bad... again unable to concentrate on work feel like crying all the time... I can't ask him to stop talking to her because I don't like to do so and also afraid of having negative impression on me in my colleague's mind. at the same time, I feel very very bad whenever they meet or have a call or does something together. I cannot discuss with him about this anymore. what shall i do, this is bothering me a lot and also having effect on my career, peace and life. please suggest. I am ready to correct myself if there is anything wrong from my end. And I can surely say that If i have a boy bestfriend then he would definitely not feel comfortable and will get upset.
Ans: Dear Jia,

When two people enter a relationship, both must try to make each other feel comfortable. If you are uncomfortable with your partner speaking to his friend, who is also his ex-crush, it is perfectly normal for you to voice it. And reading your question I understood that he has repeatedly mentioned that he had feelings for her, and even wanted to sever ties because staying in touch could only further ignite those feelings. I don't see how you are wrong in letting him know that you don't like their interactions. Plus, in a healthy relationship, the partner comes first. Not friends, especially not this kind of friendship.

Just understand that you are not wrong. Even if his intentions are pure and he looks at her like a friend, you have every right to express your feelings. You made no unreasonable demand. She wasn't "just" a friend; she was always more than that, and being insecure about something like that is not uncommon.

The only thing to do right now is to tell your boyfriend that you understand that the friendship is important but you deserve someone who can pick you over everything- obviously, reasonable things. See what he does. And please remember, you actually deserve someone who would pick you. This is not an ultimatum; it's the truth.

Best Wishes.

...Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 13, 2024

Asked by Anonymous - Sep 13, 2024Hindi
Money
Sir, I wish to invest in following MF 1. Tata or UTI nifty 50 index fund . G 2. HDFC focused 30 G 3. Mahindra Manulife multicap Or Nippon multicap..G 4. Motilal Oswal mid cap. Each will have 2.5 L investment Amt. Kindly advise Thanks..
Ans: You are considering investing Rs 2.5 lakh in four different mutual funds. This includes a mix of index funds, focused funds, multi-cap funds, and mid-cap funds. I appreciate your thoughtful selection, but it’s essential to evaluate the pros and cons before proceeding.

In this analysis, I will give you a professional yet simple overview of each type of fund. Let's ensure that your choices align with your financial goals.

1. Index Funds: Pros and Cons
You’ve mentioned the Tata or UTI Nifty 50 Index Fund. Index funds, as you know, passively track an index like the Nifty 50. While this may seem like a safe option, there are some points you need to consider:

Advantages:
Low-cost option.

Simple to understand and follow as it mirrors the index.

Decent long-term growth potential.

Disadvantages:
Lack of flexibility: Index funds follow the market. If the index doesn’t perform well, neither will your investment. This limits returns compared to actively managed funds.
No risk management: Index funds cannot switch away from underperforming sectors.
Miss out on opportunities: Actively managed funds can offer superior returns by taking advantage of market opportunities.
Since actively managed funds offer better flexibility and potential for higher returns, I would recommend focusing on actively managed funds instead of index funds.

2. Focused Funds: A Balanced Approach
You’re considering investing in HDFC Focused 30 Fund. Focused funds invest in a limited number of stocks, typically around 20-30. This allows fund managers to focus on high-conviction ideas.

Advantages:
Potential for high returns: With a limited portfolio, focused funds can give significant returns if the chosen stocks perform well.

Concentration of best ideas: Fund managers can pick the top-performing companies.

Disadvantages:
Higher risk: Because the portfolio is concentrated, if a few stocks perform poorly, it can significantly impact returns.

Volatility: These funds can experience higher fluctuations due to limited diversification.

Focused funds are ideal if you’re willing to take moderate risk. They balance high returns with some risk. Since your portfolio includes emergency funds and insurance, this could be a reasonable choice.

3. Multi-Cap Funds: Balanced Exposure to Large, Mid, and Small Caps
You mentioned either the Mahindra Manulife Multicap or Nippon Multicap Fund. Multicap funds offer exposure across large-cap, mid-cap, and small-cap stocks, providing diversification.

Advantages:
Diversification: These funds reduce risk by investing across the spectrum of large, mid, and small-cap stocks.

Flexibility: Fund managers can shift allocations based on market conditions.

Disadvantages:
Risk in small and mid-cap: Although these funds invest in large caps, the exposure to mid and small caps adds an element of risk.

Performance varies: Depending on market conditions, these funds can underperform if small or mid-caps don’t do well.

Multi-cap funds are an excellent choice for a balanced approach. They give you exposure to all segments of the market, allowing you to benefit from growth in different sectors. However, there’s moderate risk involved.

4. Mid-Cap Funds: High Growth, High Risk
Finally, you’ve considered investing in Motilal Oswal Mid Cap Fund. Mid-cap funds focus on mid-sized companies, which are often in the growth stage.

Advantages:
High growth potential: Mid-caps have higher growth potential compared to large caps.

Diversification across industries: Mid-cap companies come from diverse sectors, providing broader market exposure.

Disadvantages:
Higher volatility: Mid-cap stocks are more volatile than large caps. They can offer high returns but may experience significant fluctuations.

Market dependency: Mid-caps tend to underperform during market downturns, which increases risk.

Mid-cap funds are suitable if you are looking for long-term growth and are comfortable with higher risk. Since your portfolio includes a good mix of other funds, this could be a good growth-oriented addition.

Evaluating Your Overall Portfolio
Balanced diversification: Your portfolio contains a combination of mid-cap, multi-cap, and focused funds. This creates a balanced exposure across different market segments.

Risk assessment: The inclusion of mid-cap and focused funds indicates that you’re willing to take moderate to higher risks. However, avoid over-exposure to mid-caps, as they can be volatile in the short term.

Long-term growth potential: Each fund type offers strong long-term potential, especially with the exposure to mid and multi-cap segments. You’re positioned well for growth over the next 10-15 years.

Recommendations for Improvement
Here are a few suggestions to optimise your portfolio further:

Avoid over-reliance on index funds: As mentioned earlier, actively managed funds may offer better returns. You may want to replace the index fund with a large-cap fund managed by an experienced fund manager.

Review portfolio regularly: It’s essential to review and rebalance your portfolio regularly. This ensures your investments remain aligned with your goals and market conditions.

Consider goal-specific investments: While your portfolio appears diversified, it’s essential to allocate funds specifically for long-term goals like retirement or your child’s education. Make sure your investments match your risk tolerance and time horizon.

Tax Efficiency and Growth
Another critical factor is the tax efficiency of your investments. Mutual funds, especially equity-oriented ones, are tax-efficient compared to fixed deposits and other bank-based savings instruments. The long-term capital gains on equity mutual funds are taxed at 12.5% beyond Rs 1.25 lakh of gains, making them a better option for long-term wealth creation.

By investing Rs 2.5 lakh in each fund, you’re making a decent start. However, don’t forget to review tax implications annually to minimise liabilities and maximise growth.

Final Insights
In summary, your portfolio looks strong with a mix of equity funds targeting growth. However, I suggest replacing the index fund with an actively managed large-cap fund to optimise returns. Continue monitoring your investments regularly and ensure your asset allocation is aligned with your financial goals. With proper planning and regular reviews, your portfolio can help you achieve long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Sushil

Sushil Sukhwani  |549 Answers  |Ask -

Study Abroad Expert - Answered on Sep 13, 2024

Asked by Anonymous - May 23, 2024Hindi
Listen
Career
Hi sir, i have completed BE civil engineering and having 14years of work experience in underground metro constructions. Recently my wife got H1B for North Carolina. If i have to move with her what are the possibilities for work or studies. Is there any one MS course offered by NCSU for construction management? May i know the procedures to follow.
Ans: Hi,

To begin with, thank you for reaching out to us. I’m glad to hear that you and your wife are planning to move to North Carolina and that you intend to study and work there. To answer your question, given your extensive experience in underground metro constructions, you have several opportunities if you move to the USA. You could explore roles in civil engineering firms or construction companies that specialize in infrastructure projects, as your background aligns well with large-scale construction and engineering roles. You should also consider connecting with local engineering societies or professional networks to find job openings or consulting opportunities.

Regarding your interest in pursuing further studies, North Carolina State University (NCSU) offers courses in Construction Project Management, Construction Safety Management, Risk and Financial Management, Materials Management in Construction among others. I would recommend you to connect with an expert to get a better understanding of the various courses that are available in the USA and to know about the procedures to apply for the same.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

...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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