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Ramalingam

Ramalingam Kalirajan  |8005 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 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
Kailash Question by Kailash on Jun 08, 2024Hindi
Money

I have around 1.5 Lakhs per month to invest for around 10 years . I already have dept instruments and want to invest this aggressively taking risks .. which funds and stocks do you advice for highest returns ?

Ans: Investing Rs 1.5 Lakhs Monthly for Aggressive Growth

Understanding Your Financial Goals
Firstly, it's important to appreciate your readiness to invest Rs 1.5 lakhs monthly for the next 10 years. This shows your dedication towards wealth creation. Your willingness to take risks for higher returns is commendable, and a well-thought-out plan can yield significant benefits over time.

Evaluating Current Investments
You mentioned having existing investments in debt instruments. This provides a solid foundation and ensures stability in your portfolio. Since you are looking for aggressive growth, shifting focus towards equity investments makes sense. Diversifying into equity mutual funds and direct stock investments can offer substantial returns.

Importance of Diversification
Diversifying your investments is crucial. By spreading your investments across various asset classes and sectors, you reduce risk and increase potential returns. It ensures that poor performance in one area does not significantly impact your overall portfolio.

Actively Managed Mutual Funds
Actively managed mutual funds are beneficial for aggressive investors. These funds are managed by professional fund managers who actively select stocks and adjust the portfolio based on market conditions. They aim to outperform the market, offering higher returns compared to passive funds like index funds. The expertise of a Certified Financial Planner (CFP) and a Mutual Fund Distributor (MFD) can guide you in selecting the right funds.

Benefits of Professional Management
Professional fund managers have the experience and knowledge to navigate market fluctuations. Their active approach can lead to higher returns, especially in volatile markets. They constantly monitor and adjust the portfolio to seize opportunities and manage risks.

Direct Stock Investments
Investing directly in stocks can yield high returns if done correctly. It requires thorough research and understanding of the market. Investing in a mix of large-cap, mid-cap, and small-cap stocks can be beneficial. Large-cap stocks offer stability, while mid-cap and small-cap stocks have higher growth potential.

Sectoral and Thematic Funds
Sectoral and thematic funds can be part of your aggressive investment strategy. These funds focus on specific sectors like technology, healthcare, or infrastructure. Investing in high-growth sectors can lead to significant returns. However, they come with higher risk due to sector-specific volatility.

Systematic Investment Plan (SIP)
Investing through a Systematic Investment Plan (SIP) is a disciplined approach. It allows you to invest a fixed amount regularly, averaging out the purchase cost over time. SIPs in equity mutual funds can help you build wealth systematically while mitigating market volatility.

Importance of Reviewing and Rebalancing
Regularly reviewing and rebalancing your portfolio is crucial. Market conditions change, and your portfolio should be adjusted accordingly. A Certified Financial Planner can assist in periodically reviewing your investments and making necessary adjustments to align with your goals.

Staying Informed and Updated
Staying informed about market trends and economic indicators is important. Continuous learning and staying updated with market news can help you make informed decisions. Subscribing to financial journals and attending webinars can be beneficial.

Risk Management
While aiming for high returns, it's essential to manage risks effectively. Diversification, professional management, and regular reviews help in managing risks. Setting stop-loss orders for stocks and having an exit strategy can protect your investments.

Long-Term Perspective
Investing with a long-term perspective is key. Equity investments are subject to market fluctuations, but historically, they have delivered higher returns over the long term. Patience and discipline are important virtues in the investment journey.

Tax Planning
Efficient tax planning enhances your returns. Equity investments held for more than one year qualify for long-term capital gains tax, which is lower than short-term gains tax. Utilizing tax-saving instruments within your investment strategy can be beneficial.

Role of Technology
Leveraging technology can enhance your investment experience. Using investment apps and platforms for tracking your portfolio, setting alerts, and conducting transactions can save time and effort. Many platforms offer research tools and insights that can aid in decision-making.

Regular Monitoring and Reporting
Regular monitoring of your portfolio's performance is necessary. Setting up a system for monthly or quarterly reporting helps in tracking progress towards your goals. It ensures transparency and accountability in your investment journey.

Seeking Expert Advice
Consulting with a Certified Financial Planner regularly ensures you stay on track. Their expertise and experience provide valuable insights and guidance. They can help in refining your strategy based on changing market conditions and personal circumstances.

Staying Committed to Your Goals
Staying committed to your financial goals requires discipline and perseverance. Avoiding impulsive decisions and sticking to your plan during market fluctuations is crucial. Trusting the process and being patient is essential for achieving long-term success.

Recognizing Market Cycles
Understanding market cycles helps in making informed decisions. Recognizing the phases of expansion, peak, contraction, and trough can guide your investment strategy. A well-timed entry and exit can significantly impact your returns.

Leveraging Market Opportunities
Identifying and leveraging market opportunities is vital. Staying proactive and seizing investment opportunities during market corrections can enhance your portfolio. A well-diversified portfolio allows you to take advantage of market movements.

Maintaining Liquidity
Maintaining liquidity is important for meeting short-term needs and emergencies. Having a portion of your investments in liquid funds or easily accessible instruments ensures you are prepared for unforeseen situations.

Building a Contingency Fund
Building a contingency fund is a prudent step. It acts as a safety net during financial emergencies and prevents you from liquidating long-term investments prematurely. A contingency fund should cover at least six months of expenses.

Aligning Investments with Life Goals
Aligning your investments with life goals ensures clarity and purpose. Whether it's children's education, marriage, or retirement, having specific goals helps in creating a focused investment strategy. It provides motivation and direction.

Considering Global Diversification
Considering global diversification can enhance returns and reduce risk. Investing in international funds or stocks exposes you to global opportunities. It helps in mitigating risks associated with domestic market fluctuations.

Evaluating Fund Performance
Regularly evaluating fund performance is necessary. Comparing fund returns with benchmark indices and peer funds provides insights into performance. A Certified Financial Planner can assist in analyzing performance metrics.

Understanding Market Risks
Understanding market risks is crucial for aggressive investors. Market risks include volatility, economic downturns, and geopolitical events. Being aware of these risks helps in making informed decisions and managing expectations.

Financial Discipline and Patience
Financial discipline and patience are key to successful investing. Consistent investing, avoiding panic during market downturns, and staying focused on long-term goals are essential. Trusting the process and having faith in your strategy leads to success.

Final Insights
Investing Rs 1.5 lakhs monthly for 10 years in aggressive growth instruments can significantly build wealth. Diversifying across actively managed mutual funds, direct stocks, and sectoral funds offers potential for high returns. Professional management, regular reviews, and staying informed are crucial for success. Managing risks, maintaining liquidity, and aligning investments with life goals ensure a balanced approach. Trusting the process, staying disciplined, and seeking expert advice will guide you towards achieving your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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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Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

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PLS SUGGEST WHICH M.FUND SHOULD I INVEST FOR TEN YEARS FOR 5000RS MONTHLY
Ans: Strategic Mutual Fund Selection for Long-Term Wealth Creation

Investing in mutual funds is a prudent strategy for long-term wealth accumulation, especially when considering a ten-year horizon. Let's delve deeper into the process of selecting suitable mutual funds for this purpose.

Understanding Investment Objectives

Before diving into fund selection, it's crucial to understand your investment objectives. As a Certified Financial Planner, I appreciate your goal of securing your financial future over the next decade. By considering factors like risk tolerance, time horizon, and financial goals, we can craft a tailored investment strategy to meet your needs.

Selecting Mutual Funds: Actively Managed Funds for Long-Term Growth

Active management offers the potential to outperform the market over the long term through skilled fund management and strategic decision-making. When choosing mutual funds for a ten-year investment horizon, consider the following:

Equity-Oriented Active Funds: Actively managed equity funds have the flexibility to capitalize on market opportunities and navigate market downturns effectively. Look for funds managed by experienced fund managers with a proven track record of delivering consistent returns.

Regular Funds via MFDs: Investing through a Certified Financial Planner (CFP) who is also a Mutual Fund Distributor (MFD) offers personalized guidance and tailored investment solutions. MFDs can help you select suitable funds based on your risk profile, investment goals, and financial circumstances. They provide ongoing support, monitoring, and portfolio rebalancing, ensuring your investments remain aligned with your objectives.

Diversification and Asset Allocation: Opt for actively managed funds that offer broad diversification across different sectors, market capitalizations, and investment styles. This diversification helps spread risk and enhances the potential for long-term wealth creation. Your CFP-MFD can assist in designing a well-balanced portfolio with an appropriate asset allocation strategy to suit your risk tolerance and investment horizon.

Mitigating Risks

While equity investments offer the potential for high returns, they also come with inherent risks. Here's how you can mitigate these risks:

Diversification: Your CFP-MFD can help you construct a diversified portfolio comprising multiple actively managed funds. Diversification across asset classes, sectors, and geographical regions helps mitigate concentration risk and provides a buffer against market volatility.

Regular Monitoring and Review: Your CFP-MFD will monitor your portfolio regularly, keeping you informed about its performance and market developments. Periodic reviews enable timely adjustments to your investment strategy, ensuring it remains aligned with your long-term financial goals.

Conclusion

In conclusion, investing in actively managed mutual funds through a CFP-MFD offers a personalized approach to wealth creation and financial planning. By selecting quality funds, maintaining a diversified portfolio, and receiving ongoing guidance from your CFP-MFD, you can navigate market uncertainties and work towards achieving your long-term financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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How many marks is required in neet to get admission in iisc bangalore
Ans: IISc is a premier institute. When planning to join a prestigious institution, it's important not to focus solely on the eligibility criteria. Generally, the minimum eligibility for admission varies between 50-60%. This means that if you have at least 60% marks in the required subjects, you still may not guarantee admission, as many aspirants intend to pursue their studies at the same institute. Consequently, competition can be intense, and some applicants might not secure a place.

Please note that the admission selection process typically involves an entrance exam conducted either by the institute itself or by a testing agency. According to your query, the basic eligibility to pursue an undergraduate program at IISc is 60%, and candidates are also required to appear for the entrance exam.

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Eligibility criteria
Applicants must be Indian nationals, OCI/PIO/Foreign Nationals to apply for IAT 2025.

The candidates must have passed the Class XII (or equivalent) examination with science stream from any board recognized by the Council of Boards of School Education (COBSE) in India. Foreign Nationals need to upload an equivalence certificate issued by the Association of Indian Universities unless they have passed the Class XII or equivalent level examination from any board recognized by the Council of Boards of School Education (COBSE) in India. The equivalence certificate must be uploaded while submitting the IAT 2025 Application Form under "Please upload copy of document supporting your claim of Foreign National (You'll need to produce original when necessary)".

Candidates should have been born on or after October 01, 2000. Five years of age relaxation is given to SC, ST, and PwD candidates, i.e, these candidates should have been born on or after October 01, 1995. Note that, there is no restriction based on the completion year of Class XII.

Candidates must have taken at least three subjects among Biology, Chemistry, Mathematics and Physics during their Class XII (or equivalent) examination.

Candidates belonging to SC/ST/PwD are required to score a minimum of 55% marks in aggregate or equivalent grade in their Class XII (or equivalent) examination. Candidates belonging to other categories are required to score a minimum of 60% marks in aggregate or equivalent grade in their Class XII (or equivalent) examination.

NOTE:
Candidates belonging to Kashmiri Pandit/Kashmiri Hindu Families (Non-Migrants) may apply for the IAT 2025 as Kashmiri Migrants subject to the fullfillment of other eligibility criteria. These candidates must upload a valid domicile certificate at the time of application under "Kashmiri Migrant Certificate".

Admission to IISERs
Admission to IISERs is exclusively through the IISER Aptitude Test (IAT), which is a computer-based test scheduled on Sunday, May 25, 2025 at 9:00 AM, at various centres across the country.

Performance Criteria in Class XII (or equivalent examination)
Candidates whose Class XII (or equivalent) examination results have not yet been declared can apply for IAT 2025. However, their admission will be subject to fulfilling the minimum eligibility criteria given above.
For candidates who have appeared in the Class XII (or equivalent) examination multiple times (for whatever reasons), the best of the performances in terms of aggregate in a given year will be considered.
If a board gives aggregate marks considering both Class XI and Class XII, then only Class XII (or equivalent) examination marks will be considered. If a board gives aggregate marks considering the results of all three years of a 3-year diploma or courses of equivalent duration, then only the marks scored in the final year will be considered. Similarly, the marks scored in the final two semesters will be considered for boards that follow a semester system.
If a board awards only letter grades without providing an equivalent percentage of marks on the grade-sheet, the candidate should obtain a certificate from the board specifying the equivalent marks and submit it before the deadline of the mark-sheet submission. In case the board does not provide such a certificate, the percentage marks will be assessed as follows:

percentage marks = (CGPA or CPI obtained × 100) / PS,
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Reservation Policy
Reservation policies as mandated by the Govt. of India will apply
Scheduled Caste (SC) - 15% of seats
Scheduled Tribe (ST) - 7.5% of seats
Other Backward Classes belonging to the Non-Creamy Layer (OBC-NCL) - 27% of seats
Persons with Disability (PwD) with at least 40% impairment - 5% of seats (horizontal, within the same category)
Kashmiri Migrants - 3 seats per IISER (supernumerary)
Economically Weaker Section (EWS) - up to 10% (as per Government of India rules)
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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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