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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Dec 28, 2021

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Pius Question by Pius on Dec 28, 2021Hindi
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Your advice is highly appreciated. I have made a few investments in the past year and am thinking of adding a Gold ETF to the list.

My horizon is 14 years and am planning to retire by 50.

Please suggest your valuable feedback. Also, can I add an arbitrage fund and a hybrid fund which is good over this period if required to make a safe corpus?

Mutual Funds Amount
1. Mirae Asset Large Cap Fund Rs 2,000
2. PGIM India Midcap Opportunities Fund Rs 2,000
3. Kotak Emerging Equity Fund Rs 2,000
4. Franklin India Prima Fund Rs 2,000
5. Nippon India Small Cap Fund Rs 2,000
6. Kotak Small Cap Fund Rs 2,000
7. L&T India Value Fund Rs 2,000
8. Kotak India EQ Contra Fund Rs 3,000
9. Quant Focused Fund Rs 1,000
10. ICICI Prudential Technology Fund Rs 2,000
11. UTI Flexicap Fund Rs 1,000
12. Kotak Flexi Cap Rs 1,000

Ans: No need to add any further funds, there are already too many funds.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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I read about this service called Ask MF Guru in an article online. I wanted you to please review my existing portfolio & help me design it better to achieve my goals listed below.  I do realise that my portfolio is not diversified amongst asset classes. I want to start investing in Gold (SGB) on a regular basis. I am 38year old & my risk profile is High for another 10 years.  Please suggest what amendments I should make & how much more I should invest to achieve my targets.  Goals :-     Expenses Time yrs Amount Higher Education for Daughter (she is 2) 15 75,00,000 Marriage of Daughter 23 1,00,00,000 Retirement (Myself) 22 25,00,00,000 My current investments & savings: Current Investments Monthly Current Value Remarks Axis Long Term Equity Fund (ELSS) (R.) 5,000 1,53,000 SIP ongoing Mirae Assets Tax Saver Fund (ELSS) (R.) 7,500 3,22,000 SIP ongoing Quant Active Fund (Flexi Cap) (D.) 5,000 35,000 SIP ongoing Axis Small Cap Fund Direct-Growth (D.) 5,000 25,000 SIP ongoing Parag Parikh Flexi Cap Fund (D.) 5,000 20,000 SIP ongoing PGIM India Flexi Cap Fund (D.) 5,000 24,000 SIP ongoing Quant Active Fund (Small Cap) (D.) 5,000 23,000 SIP ongoing Axis Flexi Cap Fund (R.) 2,500 88,000 SIP ongoing Quant Tax Fund (ELSS) (D.) 3,000 8,000 SIP ongoing ICICI Prudential Long Term Equity Fund (ELSS) (R.) 4,000 1,87,000 SIP ongoing Franklin India Focused Equity (R.)  - 2,75,000 SIP Closed NPS 5,000 75,000 SIP on going EPF (Employee Contribution) 8,000 13,00,000 On going FD - 2,50,000 On going Stocks 20,000 15,00,000 On going Cashflow for Emergency - 5,00,000 On going Total 80,000 47,85,000   I appreciate your support, thank you. 
Ans: The portfolio and the asset allocation for your profile seems fine. Presently 10 SIPs of Rs 57,000 are ongoing, lets attach the SIPs to respective goals:

  1. Daughters' Higher Education: SIP worth Rs 12500 will create a corpus of Rs 75,00,000 in 15 years
  2. Daughter's Marriage : SIP worth Rs 5000 will create the required corpus of Rs 1 cr in 23 years
  3. Retirement : In 22 years Remaining SIP of Rs 39,500 will create a corpus of Rs 7 crore, plus through NPS the corpus that can be accumulated is @10% Rs 50 lakh ,plus through EPF @8.5% Rs 75 lakh, Through Stocks Rs 3.65 crore, therefore appx 12 crore can be created, for 25 crore the investment in MFs and Stocks needs to be doubled.

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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Nov 04, 2022

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I read about this service called Ask MF Guru in an article online. I wanted you to please review my existing portfolio & help me design it better to achieve my goals listed below. I do realise that my portfolio is not diversified amongst asset classes. I want to start investing in Gold (SGB) on a regular basis. I am 38year old & my risk profile is High for another 10 years. Please suggest what amendments I should make & how much more I should invest to achieve my targets. Goals:- Expenses Time yrs Amount Higher Education for Daughter (she is 2) 15 75,00,000 Marriage of Daughter 23 1,00,00,000 Retirement (Myself) 22 25,00,00,000 My current investments & savings:   Current Investments Monthly Current Value Remarks 1 Axis Long Term Equity Fund (ELSS) (R.) 5,000 1,53,000 SIP ongoing Mirae Assets Tax Saver Fund (ELSS) (R.) 7,500 3,22,000 SIP ongoing Quant Active Fund (Flexi Cap) (D.) 5,000 35,000 SIP ongoing Axis Small Cap Fund Direct-Growth (D.) 5,000 25,000 SIP ongoing Parag Parikh Flexi Cap Fund (D.) 5,000 20,000 SIP ongoing PGIM India Flexi Cap Fund (D.) 5,000 24,000 SIP ongoing Quant Active Fund (Small Cap) (D.) 5,000 23,000 SIP ongoing Axis Flexi Cap Fund (R.) 2,500 88,000 SIP ongoing Quant Tax Fund (ELSS) (D.) 3,000 8,000 SIP ongoing ICICI Prudential Long Term Equity Fund (ELSS) (R.) 4,000 1,87,000 SIP ongoing Franklin India Focused Equity (R.) - 2,75,000 SIP Closed 2 NPS 5,000 75,000 SIP on going 3 EPF (Employee Contribution) 8,000 13,00,000 On going 4 FD - 2,50,000 On going 5 Stocks 20,000 15,00,000 On going 6 Cash flow for Emergency - 5,00,000 On going   Total 80,000 47,85,000   I appreciate your support, thank you.
Ans: Kindly assign different funds for different goals.

Goal 1: Rs. 75 lakh in 15 years would require monthly investment of Rs. 12500 /-

Goal 2: Rs. 1 cr in 23 years would require a monthly investment of Rs. 5000 /-

Goal 3: Rs. 25 crs in 22 years would require a monthly investment of Rs. 1,40,000 /-

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Mutual Funds, Financial Planning Expert - Answered on Nov 27, 2024

Asked by Anonymous - Nov 27, 2024Hindi
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Hi, sir I am a an 30 year old (single) engineer working with a MNC in Chennai, unfortunately till this day i haven't had any savings at all for my future (retirement, other short term or long term goals). Currently my take home salary after EPF and parental insurance is 53k ( EPF is about 4900/month - employee+employer) i haven't opted for Corporate NPS but is provided by the company without any additional contribution from company. I have company health insurance policy and have planned to take my own health insurance and term insurance plan. Adding to above I have zero emergency fund with me. How should I proceed with my investments?
Ans: You have taken the first step by recognising the need to plan. It’s essential to appreciate your intention to secure your financial future. Let’s look at how you can proceed to achieve your short-term and long-term goals.

Your current take-home salary is Rs 53,000, and your EPF contribution is Rs 4,900. However, you lack savings, investments, and an emergency fund. Here's a step-by-step strategy:

Build an Emergency Fund
Set aside funds to cover at least six months' expenses.

Start by saving 10-15% of your salary monthly into a high-interest savings account.

Use Recurring Deposits or Liquid Mutual Funds to maintain this fund for emergencies.

Secure Yourself with Insurance
Health insurance: Maintain your company health policy but add a personal health policy. Choose a policy offering a sum insured of Rs 10-15 lakh.

Term insurance: Buy a term plan covering 10-15 times your annual income. Keep the policy simple and avoid investment-linked insurance.

Budget Your Income
Allocate your income carefully for expenses, savings, and investments.

Use the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and investments.

Avoid unnecessary expenses to increase your saving capacity.

Start Investing Gradually
Short-term goals (1-5 years): Invest in debt funds or recurring deposits. Debt mutual funds are good for stable returns.

Long-term goals (5+ years): Invest in equity mutual funds for higher returns. Choose actively managed funds with consistent performance.

Avoid index funds. Actively managed funds have a better potential for higher returns through professional fund management.

Retirement Planning
Utilise the EPF for retirement. Your current contribution will grow over time with compounding.

Consider investing in diversified equity mutual funds for additional retirement savings.

Corporate NPS: You can explore NPS for its tax-saving benefits. However, don’t rely solely on it for retirement.

Tax-Saving Investments
Use Section 80C to save taxes up to Rs 1.5 lakh.

EPF, PPF, ELSS mutual funds, and life insurance premiums can qualify under this section.

Opt for ELSS funds for tax saving and wealth creation.

Review Existing Expenses
Evaluate and minimise unnecessary expenditures.

Avoid loans for discretionary spending like vacations or gadgets.

Advantages of Using a Certified Financial Planner
A CFP can help you plan holistically and ensure you stick to your goals.

They provide tailored strategies, ensuring proper fund allocation and monitoring.

Invest through a Mutual Fund Distributor with CFP credentials to access professional advice.

Key Steps for Discipline
Automate investments through SIPs in mutual funds.

Track your monthly budget and investment progress regularly.

Avoid direct funds. Regular funds offer professional guidance and fund distributor support.

Tax Implications
For equity mutual funds, LTCG above Rs 1.25 lakh attracts 12.5% tax.

STCG on equity funds is taxed at 20%.

Debt fund gains are taxed as per your income slab. Consider these while investing.

Final Insights
You are in the right direction by seeking advice now. Build a solid foundation with savings, insurance, and investments. Take small steps toward financial independence.

Remain consistent with your investments, and review your financial plan annually.

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K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Hello, i really have a serious issue regarding my studies as i am 24 yrs now and gave NEET 4times and i am still preparing for nxt year 2025 but at the back of my mind i am really tensed what if the same thing repeats in the neet 2025 also like paper leak and all, So now i am confused that should i take a full drop or partial drop. The mental pressure is really hitting hard and also its almost been 4years that i am still 12th pass only and my classmates have already completed their college and some are flight attendant and earning well, So this all things just hits so hard and also the hope in parents eyes as my father is already proud that i studied science so i would definitely become doctor. I wasted a lot of money in pg and coaching (fastrack) and this all things are hitting so hard that i really feel sad and have no ways to go.
Ans: Hi Bhima
I must say you have got perseverance & I appreciate your parent's trust in you. You have already appeared multiple times and you are going to appear again in 2025. By the time you will be 25 years old. They say there is no age to learn. But after getting admission you need another 10 years to practice as a qualified specialist. Make sure you take admission in the next session.

If higher cutoff & high fees of private colleges are an issue for you, then try exploring the MBBS abroad option, I can help with that too. Since NEXT is compulsory for Indian & Foreign graduates too it won't make a difference if you study in India or Abroad.

For time forget all the societal pressure and give your 100% and make your parents proud.

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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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