Dear Sir My son aged 48 have never invested in Share Market. He wants to invest Rs 20k to 30 K every month in my Demat account where he is the nominee. Can u please advice some companies for long time investment say for 8 to 10 years. I shall be obliged. Regards Biswa Bijay Paul.

Ans: Excellent stock picks but very aggressive portfolio. Add some larger quality stocks or otherwise buy a good mutual fund for more stable returns

Ans: Stocks are good and with 16% CAGR returns you can achieve the target of 45lakhs in 15yrs.

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Ans: For a long-term investment horizon, you might consider recommending a diversified equity fund with a track record of consistent performance. Look for funds that have a good mix of large-cap, mid-cap, and small-cap stocks to spread out the risk. Additionally, choose a fund with a proven track record and a solid fund management team. Ensure that the fund aligns with your son's risk tolerance and investment objectives. It's also important to review the fund's past performance, expense ratio, and portfolio holdings before making a decision.

Ans: Current Financial Situation
You have two young children, a house in Bangalore, and farmland in Andhra Pradesh. You are also trading with Rs. 15 lakhs and are satisfied with the returns.

Appreciating Your Efforts
It's commendable that you are actively trading and seeing positive results. Your initiative in planning for your children's future is also praiseworthy.

Goals for Your Children's Future
To secure your children's future, it's essential to have a diversified investment strategy. Here are some key areas to consider:

Education Planning
Start Early: Investing early gives you the advantage of compounding.

Estimate Costs: Calculate the future cost of education. Consider inflation in your calculations.

Investment Options: Look at equity mutual funds for long-term growth. They can provide higher returns over time.

Child Plans
Dedicated Plans: Consider child-specific investment plans. These plans offer benefits tailored for children's future needs.

Dual Benefits: These plans often provide life cover and investment growth. They ensure financial security for your children.

Systematic Investment Plan (SIP)
Regular Investments: SIPs allow you to invest a fixed amount regularly. It helps in disciplined saving.

Rupee Cost Averaging: SIPs benefit from market fluctuations. They help in averaging out the purchase cost of units.

Flexibility: You can start SIPs with small amounts. They offer flexibility to increase investments over time.

Benefits of Actively Managed Funds
Professional Management: Actively managed funds are handled by expert fund managers. They adjust the portfolio based on market conditions.

Higher Potential Returns: These funds aim to outperform market indices. They can offer higher returns compared to index funds.

Diversification: Actively managed funds invest in a variety of sectors. This reduces risk and enhances potential returns.

Disadvantages of Direct Funds
Self-Management: Direct funds require you to manage investments yourself. This can be challenging without professional advice.

Lack of Expertise: Without a Certified Financial Planner (CFP), you might miss out on strategic adjustments.

Higher Effort: Direct funds demand constant monitoring. It requires significant time and effort.

Benefits of Regular Funds Through a CFP
Expert Advice: A CFP provides personalized investment strategies. They consider your financial goals and risk tolerance.

Regular Monitoring: Your investments are regularly reviewed and adjusted. This ensures optimal performance.

Comprehensive Planning: CFPs offer a holistic financial plan. They cover all aspects of your financial life, including insurance, retirement, and estate planning.

Diversifying Investments
Balanced Portfolio: Diversify across equity, debt, and hybrid funds. This balances risk and returns.

Emergency Fund: Maintain an emergency fund. It should cover 6-12 months of expenses.

Insurance: Ensure adequate life and health insurance. It protects your family from unforeseen events.

Final Insights
Your proactive approach to securing your children's future is excellent. Focus on a diversified investment strategy. Consider education planning, child-specific plans, and SIPs. Opt for actively managed funds for higher returns. Avoid direct funds and benefit from the expertise of a Certified Financial Planner. Regularly review and adjust your investments to align with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in