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Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 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
BISWAJIT Question by BISWAJIT on Mar 10, 2023Hindi
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my age is 56. after 58 years i earn Rs 35 k pm. how much invested in mutual fund as swp .

Ans: To determine how much you need to invest in mutual funds to achieve a monthly SWP (Systematic Withdrawal Plan) of Rs. 35,000 after you turn 58, you'll need to consider several factors:

Life expectancy: Estimate your life expectancy to determine how long you'll need to sustain the SWP.
Expected rate of return: Determine the average annual return you expect from your mutual fund investments.
Inflation: Account for inflation, as the purchasing power of Rs. 35,000 will decrease over time.
SWP frequency: Decide on the frequency of your SWP payments (e.g., monthly, quarterly, annually).
Once you have these details, you can use a financial calculator or consult a financial advisor to calculate the required investment amount. They can help you create a plan that meets your income needs while considering factors like investment risk and market volatility.
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  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Hello Myself Sunil Mishara age 60 yeras.I want to invest 40 lakh in mutual fund for long term 5 to 10 years under SWP.As I have retired person investment Plan should be moderate to low risk.I have already invested amount Rs 30 lakh in FD in senior citizen schems.
Ans: Hello Sunil, it's wonderful to hear about your investment plans as you transition into retirement. Your cautious approach to seeking moderate to low-risk options is prudent, especially considering your stage of life.

Investing 40 lakh in mutual funds for long-term growth through Systematic Withdrawal Plans (SWP) is a wise strategy. SWP allows you to receive regular payouts while keeping your principal invested, potentially earning returns over time.

Given your risk tolerance, consider allocating your investment across a mix of balanced funds and debt funds. Balanced funds offer a blend of equity and debt, providing stability with potential for growth. Debt funds, on the other hand, focus primarily on fixed-income securities, offering lower risk but steady returns.

As you've already invested a portion in senior citizen schemes, your mutual fund investment can complement this by providing additional growth potential. Regularly review your portfolio's performance and adjust allocations if needed to ensure it continues to align with your risk tolerance and financial goals.

Remember, while seeking growth, it's crucial to prioritize capital preservation at this stage of life. By diversifying your investments and opting for moderate to low-risk options, you can aim for steady income while safeguarding your financial well-being in retirement.

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Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

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I m 42 years old and will retire at age of 58. I want 3 crore at my retirement. How much amount invest lumsum in mutual fund.
Ans: Planning for Retirement: Achieving a Rs 3 Crore Corpus
You are 42 years old and plan to retire at 58. To ensure you have Rs 3 crore at retirement, you need a well-structured investment strategy. Let’s explore how to achieve this goal by investing in mutual funds.

Understanding Your Investment Horizon
You have 16 years until retirement. This is a significant period, allowing your investments to benefit from compounding. Compounding is the process where the returns earned on your investments generate their own returns. Over time, this can lead to exponential growth.

Assessing Your Risk Tolerance
Before diving into the investment calculations, it's crucial to understand your risk tolerance. Given your age and retirement goal, a balanced approach combining growth and stability is recommended. Equities can offer higher returns, but they come with higher volatility. Debt instruments provide stability but with lower returns.

Benefits of Actively Managed Funds
Actively managed funds can be a good option for your investment. These funds are managed by professional fund managers who aim to outperform the market. Here are some benefits:

Professional Management: Expert fund managers make strategic decisions to maximize returns.
Flexibility: These funds can adjust their portfolio based on market conditions.
Potential for Higher Returns: They aim to outperform index funds, providing better returns over the long term.
Disadvantages of Direct Funds
Investing in direct funds means bypassing intermediaries, but it has drawbacks:

Lack of Professional Guidance: Direct funds require you to make investment decisions without expert advice.
Higher Responsibility: You need to monitor and adjust your investments regularly.
Potential for Mistakes: Without a Certified Financial Planner (CFP), you might miss opportunities or take unnecessary risks.
Investing through a Mutual Fund Distributor (MFD) with CFP credentials provides professional guidance, ensuring your investments are well-managed and aligned with your goals.

Calculating the Required Investment
To determine how much you need to invest in a lump sum, we must consider the expected rate of return. Historically, equity mutual funds in India have provided an average return of around 12-15% per annum. For this calculation, we will use a conservative estimate of 12%.

We need approximately Rs 50 Lacs to 60 Lacs as a lumpsum investment.

Importance of Diversification
Diversification is crucial for managing risk. While equity funds can provide higher returns, adding debt funds to your portfolio can offer stability. A balanced approach ensures you are not overly exposed to market volatility.

Regular Monitoring and Rebalancing
Investments need regular monitoring. Market conditions change, and your portfolio should adapt accordingly. Rebalancing involves adjusting your investment mix to maintain the desired level of risk and return. This ensures your portfolio remains aligned with your retirement goal.

Considering Tax Implications
Investing in mutual funds has tax implications. Long-term capital gains (LTCG) tax applies to equity funds after one year, while short-term capital gains (STCG) tax applies within a year. Understanding these tax rules helps in planning your withdrawals and maximizing your returns.

Emergency Fund and Insurance
Before making a lump sum investment, ensure you have an adequate emergency fund. This fund should cover at least six months of living expenses. Additionally, having sufficient life and health insurance is crucial to protect against unforeseen events.

Reviewing Investment Options
Evaluate different mutual fund schemes based on their past performance, fund manager expertise, and investment strategy. Look for funds with consistent returns and a track record of outperforming their benchmarks.

Seeking Professional Guidance
A Certified Financial Planner can provide personalized advice tailored to your financial goals and risk tolerance. They can help you choose the right mix of funds and ensure your investment strategy is robust and effective.

Benefits of Starting Now
Starting your investment now gives you a significant advantage. The power of compounding works best with time. The earlier you start, the more you benefit from exponential growth in your investments.

Conclusion
Achieving a Rs 3 crore corpus at retirement is a realistic goal with a disciplined investment approach. By investing a calculated lump sum in mutual funds, diversifying your portfolio, and seeking professional guidance, you can ensure a comfortable and financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8317 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 17, 2024Hindi
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Which mutual fund is best for swp system, if I am investing 40 lac then how much swp per month I will receive
Ans: Investment Considerations
Investment Amount: Rs 40 lakhs
SWP Objective: Regular monthly income
Risk Appetite: Moderate
Investment Horizon: Long-term
Recommended Fund Types for SWP
Balanced Advantage Funds
Features: These funds balance equity and debt, offering growth with reduced volatility. Ideal for generating regular income through SWP.
Hybrid Debt-Oriented Funds
Features: These funds invest predominantly in debt with some exposure to equity. They offer stability and moderate returns, suitable for SWP.
Equity Savings Funds
Features: These funds use a mix of equity, debt, and arbitrage opportunities. They provide stability with a potential for better returns.
Expected Returns and Monthly SWP
Expected Annual Returns
Balanced Advantage Funds: 8-10%
Hybrid Debt-Oriented Funds: 7-9%
Equity Savings Funds: 8-10%
SWP Calculation
Assuming an 8% annual return, let's calculate the monthly SWP:

Initial Investment: Rs 40 lakhs
Annual Return: 8%
Monthly SWP: We aim for a sustainable withdrawal rate, typically around 5-6% of the corpus annually.
Monthly SWP Amount
Annual Withdrawal: Rs 40,00,000 * 5% = Rs 2,00,000
Monthly SWP: Rs 2,00,000 / 12 ≈ Rs 16,667
With a 6% annual withdrawal rate:

Annual Withdrawal: Rs 40,00,000 * 6% = Rs 2,40,000
Monthly SWP: Rs 2,40,000 / 12 ≈ Rs 20,000
Final Insights
Balanced Advantage Funds: Suitable for moderate risk appetite with growth and stability.

Hybrid Debt-Oriented Funds: Ideal for lower risk and stable income.

Equity Savings Funds: Good for balancing risk and returns with stable income potential.

Sustainable SWP: With Rs 40 lakhs, expect Rs 16,667 to Rs 20,000 monthly.

Regularly review the performance and adjust the SWP as needed to ensure it aligns with your financial goals and market conditions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

Nayagam P P  |4474 Answers  |Ask -

Career Counsellor - Answered on May 02, 2025

Asked by Anonymous - May 02, 2025
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Can I get NIT Trichy ECE with 98%ile in JEE MAINS 2025 ?? EWS rank 4146
Ans: Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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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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