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Ramalingam

Ramalingam Kalirajan  |3758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 25, 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
Asked by Anonymous - May 25, 2024Hindi
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Best SIP, im planning to invest 3k every month

Ans: Investing Rs 3,000 every month through a Systematic Investment Plan (SIP) is a smart and disciplined approach. It helps build wealth over time with manageable, regular contributions. SIPs offer the advantage of rupee cost averaging and the power of compounding.

Benefits of Investing in SIPs
Rupee Cost Averaging
Market Volatility: SIPs invest a fixed amount regularly, averaging out the cost of purchase over time.

Consistent Investment: Regular investments irrespective of market conditions help reduce the impact of market volatility.

Power of Compounding
Growth Over Time: Reinvested earnings generate more earnings, helping your investment grow exponentially over time.

Long-Term Benefits: Starting early and staying invested for the long term maximizes the benefits of compounding.

Types of Mutual Funds for SIPs
Actively Managed Equity Funds
Actively managed equity funds aim to outperform the market. Professional fund managers select stocks based on research and analysis.

Advantages:

Potential for Higher Returns: These funds aim for higher returns compared to index funds.

Professional Management: Fund managers adjust portfolios based on market conditions and opportunities.

Disadvantages:

Higher Fees: Actively managed funds typically have higher management fees.

Market Risk: Returns are subject to market performance and fund manager decisions.

Balanced or Hybrid Funds
Balanced funds invest in both equities and debt instruments. They offer a mix of growth and stability.

Advantages:

Risk Diversification: By investing in both equity and debt, these funds reduce risk.

Stable Returns: Provide relatively stable returns with lower volatility compared to pure equity funds.

Disadvantages:

Moderate Returns: Returns may be lower compared to pure equity funds.

Management Fees: Still subject to management fees, though typically lower than equity funds.

Debt Funds
Debt funds invest in fixed-income securities like bonds, treasury bills, and other debt instruments. They are suitable for conservative investors.

Advantages:

Lower Risk: Debt funds are less volatile compared to equity funds.

Regular Income: Suitable for generating regular income with lower risk.

Disadvantages:

Lower Returns: Generally offer lower returns compared to equity funds.

Interest Rate Risk: Returns can be affected by changes in interest rates.

Criteria for Selecting the Best SIP
Fund Performance
Historical Returns: Look at the fund’s historical performance over 3, 5, and 10 years.

Consistency: Choose funds that consistently perform well across different market cycles.

Fund Manager’s Experience
Expertise: Experienced fund managers bring valuable insights and strategies.

Track Record: Check the track record of the fund manager in delivering consistent returns.

Expense Ratio
Lower Costs: Funds with lower expense ratios provide better net returns to investors.

Transparency: Ensure the fund’s expenses are justified by its performance.

Fund Size
Optimal Size: Choose funds with an optimal size; too large or too small can affect performance.

Liquidity: Ensure the fund has enough liquidity to meet redemptions without impacting performance.

Recommended Investment Strategy
Diversified Portfolio
Equity Allocation: Allocate a significant portion to equity funds for growth.

Debt Allocation: Include debt funds for stability and risk management.

Balanced Funds: Consider balanced funds for a mix of growth and stability.

Regular Review and Rebalancing
Monitor Performance: Regularly review your SIP investments to ensure they are performing as expected.

Rebalance: Adjust your portfolio periodically to maintain your desired asset allocation.

Conclusion
Investing Rs 3,000 monthly through SIPs is a commendable strategy for building wealth. Focus on actively managed funds for potentially higher returns. Diversify your investments across equity, debt, and balanced funds. Regularly review and rebalance your portfolio to stay on track with your financial goals.

Thank you for seeking my guidance. Your commitment to disciplined investing is admirable. Feel free to reach out for further personalized advice.

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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Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Feb 08, 2023

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Sir, best SIP to invest in monthly basis having bugest of INR 10 TO 15K.
Ans: I have no idea about your age, future financial goals, your risk profile and your existing investments. So, while giving one suggested solution to you, I’m assuming that you’re young (less than 40 years of age), are open to equity investing, have a long term horizon of at least 7 years or more and would have the nerves to not get unduly perturbed if markets go temporarily down.

Very first point to note is that when you write that you’re investing for 20 years, please do imbibe it into your thinking too that you’re in it for a very long term. Typically, investors change their investing horizon as per the market conditions – if markets remain good, they’re long term players, if markets turn down, they start exiting in panic and become short term players. Please remember that markets will always give great returns only if you ‘spend time in the markets, rather than try timing the market’.

Since you’re just 37 years old, you have a huge age advantage (those younger have even more advantage!) – use it to your benefit. I have no idea about your other investments, your future financial goals and your risk profile (implying how much volatility are you comfortable with in the markets).

So, I’m just giving you a high-equity portfolio which is a long term portfolio but needs to be reviewed and maybe rebalanced every year. I’m also assuming that you have no other funds or equity.
The portfolio that I would suggest is:-
1. Large Cap - 20% of SIP amount - HDFC Index Fund
2. Flexicap – 20% - Parag Parikh Flexicap Fund
3. Midcap – 20% - Kotak Emerging Equity Fund
4. Aggressive Hybrid – 20% - Canara Robeco Equity Hybrid Fund
5. Small Cap – 20% - SBI Small Cap Fund

In the above portfolio, the last, Small Cap category, will be very volatile and you will need to get used to it. If you’re not up to its gyrations, stick to first four with 25% allocation each.

..Read more

Ramalingam

Ramalingam Kalirajan  |3758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - Apr 21, 2024Hindi
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Sir i invest every month 10000 Rs plz suggest which is best sip and any other
Ans: Investing regularly is a commendable habit, and you're doing great dedicating 10,000 Rs every month. As a Certified Financial Planner, I understand the importance of choosing the right investment avenue.

Mutual Funds through Systematic Investment Plans (SIPs) can be a wise choice. They offer diversification, professional management, and the flexibility to invest small amounts regularly. Additionally, they suit investors aiming for long-term wealth creation.

When it comes to SIPs, it's crucial to consider your risk appetite, investment goals, and time horizon. Opting for actively managed funds can be advantageous. Unlike index funds, actively managed funds have the potential to outperform the market, thanks to skilled fund managers who actively select investments.

Moreover, investing through a Certified Financial Planner can offer personalized advice and ongoing support. They can assist in selecting suitable funds, monitoring your portfolio, and making necessary adjustments based on market conditions and your changing financial circumstances.

While direct funds may seem appealing due to lower expense ratios, they lack the guidance and expertise provided by financial professionals. Regular funds, accessed through a Mutual Fund Distributor with a CFP credential, offer personalized service and assistance, ensuring your investments align with your financial goals.

Remember, investing is a journey, and it's essential to stay committed and patient, especially during market fluctuations. Regular review of your portfolio and making adjustments as needed can help you stay on track towards achieving your financial objectives.

Keep up the excellent work with your monthly investments, and may your financial journey be filled with success and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |3758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

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Sir which SIP will be best for investment?
Ans: Choosing the best SIP (Systematic Investment Plan) involves evaluating several factors to ensure it aligns with your financial goals and risk tolerance.

Understanding SIP
SIP is a method of investing a fixed amount regularly in mutual funds. It offers the benefit of disciplined investing and rupee cost averaging.

Assessing Your Investment Goals
Before selecting an SIP, it's essential to define your investment goals.

Are you saving for retirement, a child's education, or buying a house?

Evaluating Risk Tolerance
Your risk tolerance determines the type of funds you should invest in.

Are you comfortable with high risk for potentially high returns, or do you prefer stability?

Time Horizon
Your investment horizon influences the type of mutual funds you should choose.

A longer time horizon allows for more aggressive investments.

Benefits of Actively Managed Funds
Actively managed funds are managed by professional fund managers who aim to outperform the market.

Advantages Over Index Funds
Higher Returns: Actively managed funds aim to beat the market index, potentially offering higher returns.

Flexibility: Fund managers can adjust the portfolio based on market conditions.

Diversification: These funds often have a diversified portfolio to mitigate risk.

Disadvantages of Index Funds
Limited Flexibility: Index funds strictly track an index, limiting flexibility.

No Outperformance: They aim to match, not outperform, the index.

Market Cap Bias: These funds are heavily weighted towards large-cap stocks, which might not always offer the best returns.

Types of Funds for SIP
Equity Funds
Equity funds invest primarily in stocks. They offer high growth potential and are suitable for long-term investments.

Large Cap Funds
These funds invest in large, well-established companies. They offer stability and moderate growth.

Mid Cap Funds
These funds invest in mid-sized companies. They have higher growth potential but come with increased risk.

Small Cap Funds
These funds focus on smaller companies. They can offer substantial returns but with higher volatility.

Debt Funds
Debt funds invest in fixed-income securities like bonds. They offer stability and regular income.

Short-Term Debt Funds
Suitable for conservative investors seeking stable returns in the short term.

Long-Term Debt Funds
Offer higher returns but with increased interest rate risk.

Hybrid Funds
Hybrid funds combine equity and debt investments. They offer a balanced approach, providing both growth potential and stability.

Balanced Advantage Funds
These funds dynamically manage the allocation between equity and debt based on market conditions.

Choosing the Right SIP
Factors to Consider
Fund Performance: Look at the fund's historical performance and compare it with benchmarks.

Expense Ratio: Lower expense ratios can improve net returns.

Fund Manager’s Track Record: A skilled and experienced fund manager can significantly impact the fund's performance.

Risk-Return Profile: Ensure the fund’s risk profile matches your risk tolerance.

Suggested Categories for SIP
Large Cap Equity Funds: For stability and moderate returns.

Mid Cap Equity Funds: For higher growth potential with moderate risk.

Small Cap Equity Funds: For aggressive growth with higher risk.

Balanced Advantage Funds: For a balanced approach between equity and debt.

Short-Term Debt Funds: For conservative investors seeking stable returns.

Consulting a Certified Financial Planner
Personalized Advice: A CFP provides tailored investment strategies based on your goals and risk profile.

Holistic Planning: They consider your entire financial situation and future needs.

Expert Guidance: Benefit from their market knowledge and experience in managing investments.

Conclusion
Choosing the best SIP depends on your financial goals, risk tolerance, and investment horizon. Consider a mix of large, mid, and small-cap funds, along with hybrid funds, for a balanced and diversified portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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I belong to middle class family. I scored decent marks in JEE MAINS with 93 percentile. I had no coaching for it. I scored a rank of 6k in WBJEE . Will be writing BITSAT session 2 . I want to study in BITS pilani but my economic condition is a great problem. Should I choose a government college in my area or should I strive for BITS ? My mother is a single mother . I have a elder sister as well. Also I forgot to mention, I scored 95 percent in Class 12. My domicile state is West Bengal.
Ans: Keeping in view your mother's economic & your family conditions, please ignore BITS as its fees is very high. Please try for any Govt College in West Bengal in the domain you are interested. Instead of spending much amount in BITS, join any Govt. College and do some Certifications online through Internshala, NPTEL, LinkedIn, Coursera etc. to make yourself competent in job market. All the BEST. To know more on ‘ Careers | Education | Jobs | Resume Writing | Profile Building | Salary Negotiation Skills | Building Professional LinkedIn Profile | Choosing Right School Board (State | Matriculation | CBSE | ICSE |International Board) | Student Psychological Counselling | Exam Preparation Techniques (Board | Entrance & Competitive)| Strategies to Attempt Exams | Job Interview Skills | Skill Upgrading | Parenting & Child Upbringing Skills | Career Transition | Abroad Education | Education Loan (India | Abroad) | Scholarship (India | Abroad) | SOP Writing Tips’, please FOLLOW me in RediffGURU here.

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Asked by Anonymous - Jun 16, 2024Hindi
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I'm 28 years old guy married ..i married my uncle's daughter.i have 2 male kids.we are enjoying our life .I want to 3 more kids (2 male kids 1 female kid ).how can I make my wife convince for 3 more babies ..??pls tell me
Ans: To approach the conversation about wanting more children with your wife, start by understanding her perspective. Consider her physical and emotional well-being, her experience with the current family dynamics, and her views on expanding the family. Pregnancy and raising children are significant undertakings, and it’s important to recognize the impact on her.
It’s essential to listen to her response carefully and with an open mind. Understand that she may have concerns or reservations, such as the impact on her health, the family’s finances, or the time and energy required to raise more children. Address these concerns thoughtfully and discuss practical solutions together.

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Kanchan Rai  |240 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 17, 2024

Asked by Anonymous - Jun 17, 2024Hindi
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Relationship
Hey, I am in a relationship with my cousin who is 14 years elder than me. In 2010 we met and it is 2024 we are talking regularly without any gap, we came into a relationship in 2015 I guess. He got married to a girl in 2018 because his parents was old-age and ask him to marry, he was not mentally prepared for the married but somehow he had to. Now he has a baby 3 years old. He does not have any emotional connection with his wife as we are still in a relationship from 2015. We are in love deeply and we cant leave without each other. We do fight we resolve every time. As we have age-gaps we have different opinions, nothing is same between us, but still we manage to live together. We have physical relations too. We meet almost every month. He has sacrificed lots of things for me, and he is always there with emotionally, financially and morally. He is short temper person he cant even see me talking with other boys. Now i feel so worried about him thinking how he will be alive if I will marry, because it is a tough life in my life, my parents are looking a boy for me. I dont know how things will go on.
Ans: Navigating your relationship with your cousin, given its complexities, requires careful thought about your future and well-being.

Reflect on your emotional needs and future aspirations. Your relationship has been a deep and supportive connection, but it's important to evaluate if it continues to fulfill you. Consider whether you see a long-term future with your cousin, despite the challenges.

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Dr Shakeeb Ahmed Khan  |80 Answers  |Ask -

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My son is having motor tics like blinking,tensing the abdomen for 6 months..all other reports are normal..he was not much disturbed by that.my neurologist was advising to start medication.do I should start..
Ans: Hello Deepa,

Thank you for your query. First and foremost, I would like to inform you that I am not a neurologist but a physiotherapist, so my advice will be from a physiotherapy perspective. If you are hesitant to start medication, you may consider seeking a second opinion from another neurologist, as neurologists are well-equipped to manage motor tics medically.

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Physiotherapists also engage children in activities that improve overall motor control, which might help lessen the frequency and severity of tics. Proprioceptive training exercises enhance body awareness and proprioception. Postural correction is another key area, addressing any postural issues that may arise due to repetitive tics, ensuring the child maintains a healthy posture to avoid secondary complications. Furthermore, we implement programs to strengthen weak muscles and stretch tight muscles to support better posture and overall muscle function.

Encouraging regular physical activity is also beneficial, as it can help reduce stress and improve overall well-being. By incorporating these strategies, physiotherapy can provide valuable support in managing motor tics, enhancing the child's quality of life, and complementing other medical and therapeutic interventions. Wishing for his quick recovery.

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Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |80 Answers  |Ask -

Physiotherapist - Answered on Jun 17, 2024

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My son is having motor tics like blinking,tensing the abdomen for 6 months..all other reports are normal..he was not much disturbed by that.my neurologist was advising to start medication.do I should start..
Ans: Hello Deepa,

Thank you for your query. First and foremost, I would like to inform you that I am not a neurologist but a physiotherapist, so my advice will be from a physiotherapy perspective. If you are hesitant to start medication, you may consider seeking a second opinion from another neurologist, as neurologists are well-equipped to manage motor tics medically.

From a physiotherapy standpoint, we can offer supportive management of motor tics through various non-pharmacological interventions. These include teaching stress management techniques, as stress and anxiety can exacerbate tics. For instance, diaphragmatic breathing can help reduce overall stress and tension. Additionally, physiotherapists can guide the child through Progressive Muscle Relaxation (PMR) exercises to help relax muscle groups and reduce the frequency of tics.

Physiotherapists also engage children in activities that improve overall motor control, which might help lessen the frequency and severity of tics. Proprioceptive training exercises enhance body awareness and proprioception. Postural correction is another key area, addressing any postural issues that may arise due to repetitive tics, ensuring the child maintains a healthy posture to avoid secondary complications. Furthermore, we implement programs to strengthen weak muscles and stretch tight muscles to support better posture and overall muscle function.

Encouraging regular physical activity is also beneficial, as it can help reduce stress and improve overall well-being. By incorporating these strategies, physiotherapy can provide valuable support in managing motor tics, enhancing the child's quality of life, and complementing other medical and therapeutic interventions. I wish for his early recovery.

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Anu

Anu Krishna  |960 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 17, 2024

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I need advice on how to keep my wife and mom from fighting so much. We are currently staying with my mom due to her having so many health issues. It doesnt help that 3 people are living in a small camper with no privacy. I know most of that is the issue but im afraid to leave my mom alone but she doesn't want to move to a bigger place. I work about 50 hours a week and cannot mediate between them. Ive tried both talking to them separately and together. My mom says my wife does things to intentionally annoy her and my wife says my mom is to controlling. Im trapped in the middle because no matter what i do or say im defending someone. Help please..
Ans: Dear Jay,
Two grown-ups must be allowed to deal with their unique relationship their way. The responsibility of how it turns out is theirs and not yours. So, honestly step back. The reason you possibly might want to play the peacemaker is you feel responsible towards your wife and your mother; please don't and stay off of it. The more you play this role, the more you make them dependent on you.
Yes, it's a difficult thing as a son to leave your mother especially with so many health issues, BUT is she physically incapable of caring for herself? Is it possible that she can live with a sibling of yours or any other family member for a few weeks? This gives you some breathing space and some time with your wife where you connect without the external challenges that are creeping into your relationship with her.
Also, this space will allow both the women to appreciate one another and also learn the valuable presence each has on the family. So, no more mediation BUT time to do something different with less talk and more results. Try this...of course, you need to be prepared to move on from this fear of leaving your mother alone which you are not...it's just requesting her to live with another family member (your sibling OR her sibling).
Slowly, you can bring up the topic of shifting to a larger space whereby each of you have some space from one another. First things first is to diffuse the tension between the two before suggesting any big changes. You can give this a shot, yeah?

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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.

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