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Vivek

Vivek Lala  |251 Answers  |Ask -

Tax, MF Expert - Answered on Jun 20, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Girish Question by Girish on Jun 18, 2024Hindi
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Can you please advise SIP in mutual fund. i can take moderate risk. i want to invest 2000 Rs every month and increase it by 500 every year for next 15 years for my retirement.

Ans: Hello, I am glad you want to start investing in mutual funds
In order to decide the SIP amount, you first have to decide your retirement corpus. Based on that you should back calculate the SIP amount
If the SIP amount is below 10K , you can select any of the 2 funds from mid cap , small cap and multi cap.
Asked on - Jun 20, 2024 | Not Answered yet
Corpus i can say 1 cr. but i have think of SIP also which is practically possible based on my earnings. Can you please let us know, based on my SIP plan for next 15 years, what would be corpus amount will be and which are those 2 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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Ramalingam

Ramalingam Kalirajan  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

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Dear Sir, I am 40 years old and i want to invest Rs.10,000/- per month through SIP in Mutual Funds for the period of 10 Years. Please suggest in which fund i have to invest.
Ans: Investing in mutual funds through Systematic Investment Plans (SIPs) is a wise decision. At 40, you have chosen the perfect time to plan for your financial future. Investing Rs. 10,000 per month for the next 10 years can build substantial wealth. Let's explore the best mutual fund options to meet your goals.

Understanding SIPs and Their Benefits
SIP allows you to invest a fixed amount regularly in mutual funds. It offers several benefits:

Disciplined Investment: SIP ensures regular savings, promoting financial discipline.
Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high, averaging out the cost.
Compounding Effect: Earnings from your investments generate their own earnings, significantly growing your wealth over time.
Assessing Your Investment Goals
Your investment strategy should align with your goals, risk tolerance, and investment horizon. At 40, you might have goals like children's education, retirement, or buying a house. With a 10-year horizon, a balanced approach considering both growth and stability is ideal.

Types of Mutual Funds to Consider
1. Equity Mutual Funds

Equity mutual funds invest primarily in stocks. They offer higher returns but come with higher risks. Given your 10-year horizon, equity funds can provide substantial growth.

Large-Cap Funds: Invest in large, established companies. They are less volatile and provide stable returns.

Mid-Cap and Small-Cap Funds: Invest in medium and small companies. They are more volatile but can offer higher returns.

Multi-Cap Funds: Invest across companies of all sizes, providing a balanced risk-reward profile.

2. Balanced or Hybrid Funds

Balanced funds invest in both equities and debt instruments. They offer a mix of growth and stability. These funds are suitable if you want moderate risk and stable returns.

3. Debt Mutual Funds

Debt funds invest in fixed-income securities like bonds and treasury bills. They are less risky and offer stable returns. These funds are suitable if you prefer lower risk.

4. Tax-Saving Funds (ELSS)

Equity Linked Savings Schemes (ELSS) offer tax benefits under Section 80C. They have a lock-in period of three years and primarily invest in equities. These funds are ideal if you want to save on taxes and earn good returns.

Advantages of Actively Managed Funds Over Index Funds
Actively managed funds have professional fund managers making investment decisions. They aim to outperform the market. In contrast, index funds passively track a market index. While index funds have lower fees, actively managed funds can potentially offer higher returns through expert management.

Benefits of Regular Funds vs Direct Funds
Regular Funds

Expert Guidance: Investing through a Certified Financial Planner (CFP) ensures professional guidance.

Better Decisions: CFPs can help you choose funds that align with your goals and risk profile.

Convenience: CFPs handle all paperwork and administrative tasks, making the process smoother.

Direct Funds

Lower Costs: Direct funds have lower expense ratios as they don’t involve intermediaries.

Self-Management: Requires you to manage and track your investments.

Given your busy schedule and the complexities of financial markets, regular funds through a CFP provide a more comprehensive approach.

Creating a Balanced Portfolio
Diversification is key to managing risk. A well-balanced portfolio might include:

60% Equity Funds: Split between large-cap, mid-cap, and multi-cap funds.

30% Balanced Funds: To ensure stability and moderate returns.

10% Debt Funds: For low-risk, stable returns.

This diversified approach balances growth potential with risk management.

Monitoring and Adjusting Your Portfolio
Regularly review your portfolio with your CFP. The market and your financial goals might change. Adjust your investments accordingly to stay on track.


Your decision to invest systematically shows foresight and financial acumen. At 40, you're taking control of your financial future, which is commendable. Investing Rs. 10,000 monthly through SIPs is a strategic move that will yield significant benefits over time.

Conclusion
Investing in mutual funds through SIPs is a smart way to build wealth. With a balanced mix of equity, balanced, and debt funds, you can achieve your financial goals. Working with a Certified Financial Planner ensures professional guidance, helping you make informed decisions. Stay disciplined, monitor your portfolio, and adjust as needed to ensure financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Aasif Ahmed Khan

Aasif Ahmed Khan   |61 Answers  |Ask -

Tech Career Expert - Answered on Jul 13, 2024

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Hello I completed btech in mechanical engineering from iiT kanpur but I have not placed by recruiter and didn't get any job then what is I do
Ans: Remember that job searching takes time, and rejection is part of the process. Stay motivated, keep learning, and believe in your abilities. You’ll find the right opportunity eventually!
Job hunting can be challenging, but persistence pays off. Keep applying and stay positive.
Reflect on your skills, interests, and strengths. Identify areas where you excel and areas where you need improvement. Consider taking online courses or certifications to enhance your skills in specific domains.

Use job portals, company websites, and social media platforms to search for job openings. Apply to positions that align with your background and interests.
Connect with professionals in your field through LinkedIn, industry events, and workshops. Attend job fairs, conferences, and meetups to expand your network.
Update your resume and tailor it to highlight relevant experiences and skills. Write a compelling cover letter that showcases your passion and suitability for the roles you’re applying for.

Consider learning programming languages (Python, MATLAB, etc.) or software commonly used in mechanical engineering.
Explore areas like data analysis, simulation, or CAD design. Apply for internships or short-term projects to gain practical experience. Showcase any personal projects related to mechanical engineering on your portfolio. Obtain relevant certifications (e.g., Six Sigma, AutoCAD, SolidWorks) to enhance your profile.

In other hand, If you’re open to it, explore master’s programs or specialized courses that align with your interests.

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Mayank

Mayank Chandel  |1473 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Jul 13, 2024

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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