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

Ramalingam Kalirajan  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 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
K Question by K on May 01, 2024Hindi
Listen
Money

My age is 55 . Please advise how to make 50 lakhs in next 15 years . Income is 75K Expenses is 35K. No EMI payable.

Ans: Given your age, income, and expenses, accumulating 50 lakhs in the next 15 years is achievable with disciplined savings and investment strategies. Here's a suggested approach:

Budgeting and Saving: Continue managing your expenses efficiently, ensuring that you maintain a healthy balance between income and spending. With a surplus income of 40K per month, prioritize saving a portion of this amount regularly.
Investment Allocation: Allocate a significant portion of your savings towards long-term investment avenues that offer potential growth over time. Consider a diversified portfolio comprising equity mutual funds, debt instruments, and other suitable investment options based on your risk tolerance and investment goals.
Equity Investments: Given your time horizon of 15 years, consider allocating a significant portion of your investment portfolio to equity mutual funds. Equity investments have the potential to generate higher returns over the long term, albeit with higher volatility. Opt for a mix of large-cap, mid-cap, and diversified equity funds to spread risk and maximize growth potential.
Debt Instruments: Allocate a portion of your investments to debt instruments like fixed deposits, bonds, or debt mutual funds to provide stability and preserve capital. Debt investments can serve as a cushion during market downturns and provide regular income through interest payments.
Systematic Investment Plan (SIP): Consider investing regularly through SIPs in mutual funds to benefit from rupee-cost averaging and mitigate the impact of market volatility. By investing a fixed amount at regular intervals, you can accumulate wealth steadily over time, regardless of market fluctuations.
Review and Adjust: Regularly review your investment portfolio to ensure it remains aligned with your financial goals, risk tolerance, and market conditions. Make adjustments as needed to optimize your portfolio for growth and stability.
Consultation: Consider consulting with a Certified Financial Planner to develop a personalized financial plan tailored to your specific circumstances and goals. A financial advisor can provide valuable insights and guidance to help you achieve your financial objectives effectively.
By implementing these strategies and staying disciplined with your savings and investments, you can work towards accumulating 50 lakhs over the next 15 years to secure your financial future. Remember, consistency, patience, and prudent decision-making are key to achieving long-term financial success
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

Dev

Dev Ashish  | Answer  |Ask -

MF Expert, Financial Planner - Answered on Apr 26, 2023

Asked by Anonymous - Apr 24, 2023Hindi
Listen
Money
How do I earn monthly income of 2 lakhs post retirement which is 15 years away? Please suggest options
Ans: If we calculate using a few assumptions, like post-retirement life of 25 years; average inflation of 6% pa during that period, and portfolio returns of about 8% (assuming a judicious mix of equity and debt with a higher allocation to the latter), then you need to have a corpus of about Rs 4.8 Cr. This is to ensure that starting at Rs 2 lakh monthly (after 15 years), your monthly income from there on increases by at least 6% assumed inflation. And starting from zero, you need to invest about Rs 1.1 lakh per month assuming equity:debt 50:50 and this monthly investment amount should increase by at least 5% every year.

To reach this target corpus, you have a sufficiently long runway of 15 years. So you should be willing to invest a major chunk in equities via equity funds if your risk appetite allows for it. You may also have some of the existing assets, which too can be earmarked towards this retirement corpus.

As mentioned, for equity allocation, choose diversified equity funds categories like passive largecap funds, flexicap funds, and large&midcap funds (and if you have a sufficiently high-risk appetite, then mid-and-small cap funds as well). For debt, your EPF+VPF alongwith PPF should be sufficient.

When the time comes for retirement (in 15 years), you may have to divide your portfolio into 2 buckets. One to take care of income needs (via SCSS, debt funds, PPF withdrawals, bonds, etc.) and the other for growth (via equity funds and ETFs)

..Read more

Ramalingam

Ramalingam Kalirajan  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 15, 2024Hindi
Listen
Money
I am 28 year old earning 1.2 lakhs per month. Started my first job and earning. Please suggest me how can I make 5 crore in the next 15 years. Not started any investment yet.
Ans: Building a Wealth Corpus of ?5 Crore in 15 Years
Understanding Your Goal
Congratulations on starting your first job and thinking about your financial future. Accumulating ?5 crore in 15 years is an ambitious yet achievable goal with disciplined investing.

Setting a Clear Plan
Since you earn ?1.2 lakhs per month, you have a significant opportunity to save and invest a substantial portion of your income. Let's break down how to approach this goal.

Emergency Fund
Before you begin investing, build an emergency fund. Save at least six months’ worth of expenses. This fund should be kept in a liquid savings account or short-term fixed deposits for easy access.

Systematic Investment Plan (SIP) in Mutual Funds
SIP is a disciplined approach to investing in mutual funds. It helps in averaging out the cost and reduces the impact of market volatility.

1. Equity Mutual Funds
Investing in equity mutual funds can offer high returns over the long term. Allocate a significant portion of your investments here.

Large-Cap Funds: These funds invest in established companies with a stable performance record.

Mid-Cap Funds: These funds have higher growth potential but come with slightly higher risk.

Small-Cap Funds: These funds offer high returns but are more volatile. Invest a smaller portion here.

2. ELSS Funds
Equity Linked Savings Scheme (ELSS) funds offer tax benefits under Section 80C and have a lock-in period of three years. They can be a good addition to your portfolio.

Public Provident Fund (PPF)
PPF is a safe and tax-efficient investment option. It offers good returns with tax benefits under Section 80C. Although it has a lock-in period of 15 years, the safety and tax benefits make it a good long-term investment.

National Pension System (NPS)
NPS is a government-backed retirement savings scheme. It offers tax benefits and a disciplined approach to retirement savings. It is a good way to ensure a steady income post-retirement.

Stocks
Direct equity investment can provide substantial returns but comes with higher risks. Start small and gradually increase your investments as you gain experience. Focus on fundamentally strong companies with long-term growth potential.

Gold
Gold can act as a hedge against inflation. Invest in gold bonds or gold ETFs instead of physical gold. Allocate a smaller portion of your investments here.

Monthly Investment Plan
Since you aim to accumulate ?5 crore, you need to invest a significant portion of your income. Considering you can save ?50,000 to ?60,000 per month, allocate your investments as follows:

Equity Mutual Funds (Large-Cap, Mid-Cap, Small-Cap): ?30,000

ELSS Funds: ?10,000

PPF: ?5,000

NPS: ?5,000

Stocks: ?5,000

Gold: ?5,000

Regular Monitoring and Review
Regularly monitor your investment portfolio. Review your investments every six months to ensure they align with your goals. Adjust allocations based on performance and changes in your financial situation.

Financial Discipline and Learning
Maintain financial discipline by sticking to your investment plan. Continuously educate yourself about personal finance and investments. Consider consulting with a Certified Financial Planner (CFP) to get personalized advice.

Conclusion
By starting early and investing wisely, you can build a substantial corpus for your financial goals. Diversify your investments across mutual funds, PPF, NPS, stocks, and gold. Maintain financial discipline and review your portfolio regularly to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 21, 2024

Money
Sir i am of 33 and my salary is 42000 now, how can i make 2cr in 15 years and i am only House holder in my house so i want some suggestions about any miss happening with me, how can survive my family at the time. Pls suggest me thank you.
Ans: You are 33 years old and earning Rs 42,000 per month. As the sole breadwinner for your family, your financial responsibility is important. You want to accumulate Rs 2 crore in the next 15 years and ensure your family is financially protected in case of any unfortunate event. I’ll guide you on how to achieve these goals effectively.

Step 1: Setting Clear Financial Goals
You want to create a corpus of Rs 2 crore in the next 15 years. To achieve this, it’s crucial to plan your investments wisely. Let’s break down how to get there, ensuring that your financial journey is structured.

Target amount: Rs 2 crore in 15 years

Time frame: 15 years

Monthly investment required: We’ll discuss how much you need to invest each month to reach Rs 2 crore based on different investment strategies.

Step 2: Choose the Right Investment Strategy
For long-term wealth creation, investing in mutual funds is a proven strategy. A combination of equity and debt mutual funds will provide you with growth and stability.

Equity mutual funds: These offer high growth potential, especially for long-term goals like 15 years. You should focus on actively managed funds that outperform the market over time, giving you higher returns compared to index funds.

Debt mutual funds: These provide stability and reduce risk in your portfolio. While the returns are lower than equity, they are more predictable and safer.

SIP (Systematic Investment Plan): By investing through SIPs, you can start small and gradually build your wealth over time. SIPs allow you to benefit from rupee cost averaging and help you stay disciplined.

Step 3: Protecting Your Family from Financial Risk
As you are the only earning member of your family, it’s important to secure your family’s future in case something happens to you. A comprehensive insurance plan is the key to ensuring their financial well-being.

Term Insurance: A term insurance policy is an essential protection tool. It offers a high cover at a low premium. If anything happens to you, your family will receive a lump sum amount, ensuring their financial security. Aim for coverage of at least 15-20 times your annual income. This ensures that your family will have sufficient funds to meet their expenses even in your absence.

Health Insurance: Apart from life insurance, health insurance is equally important. Medical emergencies can be expensive, and a comprehensive health insurance policy will cover these costs without affecting your savings. Make sure you and your family are covered under a good health plan.

Step 4: Monthly Investment to Reach Rs 2 Crore
To reach Rs 2 crore in 15 years, you will need to invest a certain amount each month, depending on the expected return rate. Here’s what you should aim for:

Expected return rate: If you invest in a mix of equity and debt mutual funds, you can expect an average return of 9-10% per year over the long term.

Monthly SIP amount: Based on a return of 9-10%, you will need to invest approximately Rs 35,000-40,000 per month through SIPs to reach Rs 2 crore in 15 years. This is achievable if you consistently invest and stay disciplined.

Step 5: Emergency Fund for Financial Security
Before you start investing, it’s important to create an emergency fund. This fund should cover at least 6 months of living expenses. It will act as a financial cushion in case of job loss, medical emergencies, or other unexpected expenses. Keeping this money in a liquid mutual fund or fixed deposit will ensure easy access in case of need.

Step 6: Tax Planning for Better Returns
Mutual funds are tax-efficient, but it’s important to understand the taxation rules to maximise your returns.

Equity mutual funds: If you sell your equity mutual funds after 1 year, the long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) on equity are taxed at 20%.

Debt mutual funds: Both long-term and short-term capital gains on debt mutual funds are taxed as per your income tax slab.

Tax-saving mutual funds: Consider investing in ELSS (Equity Linked Saving Scheme) funds to save on taxes. ELSS allows you to save taxes under Section 80C, up to Rs 1.5 lakh annually, while also giving equity market exposure.

Step 7: Avoiding Low-Yield Products
Avoid low-yield investment products like endowment plans or ULIPs. These products offer low returns and have high fees. Instead, focus on mutual funds, which provide better growth and flexibility. While ULIPs offer a mix of insurance and investment, they often don’t perform as well as pure investment products like mutual funds.

Step 8: Regular Review and Rebalancing
As your investments grow, it’s important to review your portfolio regularly. At least once a year, assess whether your investments are aligned with your goals. If needed, rebalance your portfolio to maintain the right mix of equity and debt.

Increase investments: As your salary grows, increase your SIP amount accordingly. This will help you reach your Rs 2 crore goal faster.
Step 9: Plan for Retirement
Although your goal is to accumulate Rs 2 crore in 15 years, you should also start planning for your retirement now. This will ensure that you are financially secure in your later years.

NPS (National Pension Scheme): Consider contributing to NPS for your retirement planning. NPS is a tax-efficient retirement savings scheme that provides exposure to equity and debt.
Final Insights
To achieve Rs 2 crore in 15 years, you need a disciplined investment approach. Start with SIPs in mutual funds, focusing on actively managed equity funds. Protect your family with term insurance and health insurance. Create an emergency fund to safeguard against unexpected expenses. Keep an eye on tax efficiency and avoid low-return products like ULIPs or endowment plans. With regular reviews and increased investments as your income grows, you can confidently reach your Rs 2 crore goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Listen
Money
Hello! Advait ji, My Mom is 82 and gets family pension. She has 70 lakhs FD maturing in March 25. I would like to invest 10 lakhs in FD as emergency fund. Kindly advice how to invest the remaining 60 lakhs, which is risk free and gives good returns (better than FD) She has the following investment - 1. 10 lakhs in Edelweiss Multicap Fund - Gr 2. 2 lakhs 40 thousand in HDFC Flexicap Fund -Gr 3. 2 lakhs 40 thousand in HDFC Midcap Opportunities Fund 4. 2 lakhs 50 thousand in Invesco India Focused Fund 5. 2 lakhs 50 thousand in LIC MF Infrastructure Fund 6. 2 lakhs 50 thousand in Motilal Oswal Large and Mid-Cap 7. 2 lakhs 40 thousand in Nippon India Large Cap Fund 8. 2 lakhs 40 thousand in Nippon India Multicap Fund 9. 2 lakhs 40 thousand in Nippon India Small Cap Fund 10. 2 lakhs 40 thousand in Quant Small Cap Fund. Total Mutual fund investment of 32 lakhs. Apart from MF she has invested in Bajaj Allianz Life insurance plan, where she will investRs 2 Lakhs per year for 10 years. This is a guaranteed plan. She is comfortable running the house with her pension. However, please suggest shorter duration investments (5 yrs) Regards Namrata
Ans: Hello;

She may opt for any of these investment avenues:

1. Post office time deposit scheme(FDs offered by post office for 1,2,3 & 5 year tenure); Joint holding allowed; Premature withdrawal allowed after 6M. (Current ROI 6.9-7.5%)

2. NSC with a fixed tenure of 5 years; No premature withdrawal allowed. Can be held jointly(Current ROI 7.7%)

3. KVP: Although tenure is 9 yrs and 5 months, you may do premature encashment after 2.5 years; joint holding allowed;(Current ROI 7.5%)

You may approach a reliable postal agent to process these investments to avoid hassle of frequent post visits and associated hardships.

These are backed by GOI so no risk of default.

Hope this meets your requirements.

Best wishes;

...Read more

Dr Dipankar

Dr Dipankar Dutta  |1061 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 25, 2025

Listen
Career
I am a first year student at MIT Manipal,currently pursuing Electrical and Electronics engineering(EEE),and I am have been given a choice to apply for branch change in my institute either to CSE,Mathematics and Computing(MnC) or ECE in my second year. I did not study Computer Science in 11th and 12th, and I coding in C for the first time as part of my 1st year syllabus.I am not very much interested to coding,but I am learning it since it is there in the course syllabus. My parents suggest switching to CSE, but they are not engineers and do not have insights into the current job market. Since my batch will be passing out in 2028, I want to understand the job scenario for CSE, MnC, ECE, and EEE graduates by then. Among these,which branch provides better opportunities for core engineering jobs with good or decent salary and stability? I have heard that many ECE graduates end up in IT jobs due to lack of core industries-is that true?Would ECE be a better alternative to CSE for core jobs or is it better to stay in EEE? Also between CSE, ECE, and EEE, which has less competition in the job market while still offering good career prospects? Additionally, I want to know which branch is broader, with ample opportunities in both the government and private sectors, especially for core jobs with good pay and stability. base on futuret rends, would it be a wise decision to change my branch, or should I continue with EEE?
Ans: Happy to see that you have asked very logical questions. I can say that, since you are already in Electrical and Electronics Engineering (EEE) at MIT Manipal and have the opportunity to change to CSE, Mathematics and Computing (MnC), or ECE, your decision should be based on:


Your Interests (Core Engineering vs Coding)
Job Market Trends for 2028 and Beyond
Competition & Industry Demand

Future Job Market (2028 & Beyond) for Each Branch
Branch Core Job Scope IT/Software Jobs Govt Jobs Competition Salary Stability
CSE Low (Software Focused) High Limited Very High High but Unstable
MnC Medium (AI/ML, Finance) High Limited High High but Research-Oriented
ECE Medium (VLSI, Chip Design, Telecom, IoT) High Moderate (ISRO, DRDO, PSU) High Medium-High
EEE High (Power, EVs, Automation, Energy, PSU) Moderate High (Railways, NTPC, BHEL, Govt) Low-Medium High & Stable

Should You Switch to CSE, MnC, or ECE?
If You Want Core Engineering Jobs with Stability
Best Option: Stay in EEE

If You Want a Balance Between Core & Software Jobs
Best Option: ECE

If You Want a High-Paying Private Sector Career (But Not Core Engineering)
Best Option: MnC or CSE

Hope this will help you in decision making.

...Read more

Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Listen
Hi sir I am investing when ever i have money not like in SIP. my most of investments are around 6 L invested in Quant different mutual funds. No a days i can see my all the Quant funds are going down. Im 34 years old female. My plan is 10 years. Can i exit from quant and invest in any some MF rather than getting more loss? Can you please review my portfolian. Do i need to exit from any MF. Since i'm maintaining too many MF. Thanks in advance. Mutual Funds List No' Scheme Name AMC Category Sub-category ISIN 1 DSP Small Cap Direct Plan Growth DSP Mutual Fund Equity Small Cap INF740K01QD1 2 Quant Focused Fund Direct Growth Quant Mutual Fund Equity Focused INF966L01853 3 Parag Parikh Flexi Cap Fund Direct Growth PPFAS Mutual Fund Equity Flexi Cap INF879O01027 4 Mirae Asset ELSS Tax Saver Fund Direct Growth Mirae Asset Mutual Fund Equity ELSS INF769K01DM9 5 JM Flexicap Fund Direct Plan Growth JM Financial Mutual Fund Equity Flexi Cap INF192K01CC7 6 Axis Growth Opportunities Fund Direct Growth Axis Mutual Fund Equity Large & MidCap INF846K01J46 7 Parag Parikh ELSS Tax Saver Fund Direct Growth PPFAS Mutual Fund Equity ELSS INF879O01100 8 Quant Small Cap Fund Direct Plan Growth Quant Mutual Fund Equity Small Cap INF966L01689 9 Canara Robeco Small Cap Fund Direct Growth Canara Robeco Mutual Fund Equity Small Cap INF760K01JC6 10 Motilal Oswal Midcap Fund Direct Growth Motilal Oswal Mutual Fund Equity Mid Cap INF247L01445 11 Nippon India Multi Cap Fund Direct Growth Nippon India Mutual Fund Equity Multi Cap INF204K01XF9 12 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 13 ICICI Prudential Value Discovery Direct Growth ICICI Prudential Mutual Fund Equity Value INF109K012K1 14 Quant Flexi Cap Fund Direct Growth Quant Mutual Fund Equity Flexi Cap INF966L01911 15 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 16 Quant ELSS Tax Saver Fund Direct Growth Quant Mutual Fund Equity ELSS INF966L01986 17 Aditya Birla Sun Life PSU Equity Fund Direct Growth Aditya Birla Sun Life Mutual Fund Equity Sectoral / Thematic INF209KB1O82 18 Quant Mid Cap Fund Direct Growth Quant Mutual Fund Equity Mid Cap INF966L01887 STOCKS LIST 1 APOLLO TYRES-EQ RE 1 2 ASIAN PAINTS EQ 1/ 3 BRITANNIA IND-EQ1/- 4 CG POWER-EQ2/ 5 IRCTCL-EQ2 6 NHPC LIMITED - EQ 7 TATA STEEL-EQ1/ 8 Deepak nitrate 9 LT 10 Narayana Hrudayalaya
Ans: Hello;

6 L worth investment in 18 different funds is spreading it too thin.

You have a time horizon of 10 years but how much corpus you want to accumulate after 10 years kindly clarify?

Also if you can specify the goal for which this investment is aimed at then it will help us to suggest suitably.

I will recommend you strategy to rationalize you MF holdings once you revert on the above points.

Thanks;

...Read more

Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Asked by Anonymous - Jan 26, 2025
Money
Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...
Ans: Hello;

Suppose you sell your house and clear your loans and other liabilities but where will you & your family stay?

How much rental per month would be required to get an adequate house on rent?

Please clarify. Based on your input we can advise you suitably.

Thanks;

...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