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Sunil

Sunil Lala  |201 Answers  |Ask -

Financial Planner - Answered on Apr 10, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Veera Question by Veera on Mar 11, 2024Hindi
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i want corpus of 2 crores within 15 years, i can invest monthly 15 thousands and 5 to 8 lakhs at one time lumpsum. please suggest bets mutual funds to sip and lumpsum

Ans: With this much investment you may not make a Corpus of 2 crore you need to stretch your investments for 20 years.
You can invest in a Multicap, large & mid cap and flexicap fund
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  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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I want 1 crore for corpus. I invest monthly SIP 30000/- . Pls suggest best fund.
Ans: the best fund for you depends on several factors, including:

Investment Horizon: How long do you plan to invest until you need the Rs. 1 crore? A longer timeframe allows for more aggressive investments with higher growth potential but also higher risk.
Risk Tolerance: How comfortable are you with potential losses? Lower risk tolerance suggests a more conservative portfolio with a larger debt allocation.
Financial Goals: Is this Rs. 1 crore for retirement, a child's education, or another goal? Your goals will influence your investment strategy.
Here's what I can recommend:

Consult a Certified Financial Planner (CFP): A CFP can consider your unique circumstances and create a personalized investment plan to achieve your Rs. 1 crore goal.

Consider a Diversified Portfolio: Don't put all your eggs in one basket. A diversified portfolio with a mix of asset classes (equity, debt, etc.) can help manage risk. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Start an SIP in Equity Funds: If you have a long investment horizon and a moderate risk tolerance, consider a Systematic Investment Plan (SIP) in diversified equity mutual funds. SIPs help you invest regularly and benefit from rupee-cost averaging.

Here's an example (not a recommendation):

Invest in a Multi-Cap Fund (SIP): A Multi-Cap Fund invests across market capitalizations (large, mid, small).

Invest in a Flexi-Cap Fund (SIP): A Flexi-Cap Fund allows the fund manager more flexibility in choosing companies across market capitalizations.

Invest in a Debt Fund (SIP): A Debt Fund provides stability and regular income.

Remember:

There's no guaranteed path to Rs. 1 crore. Investment markets are volatile, and returns cannot be guaranteed.

Review Regularly: Review your portfolio (at least annually) with your CFP to ensure it remains on track.

By consulting a CFP and building a diversified portfolio, you can increase your chances of achieving your Rs. 1 crore goal!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 02, 2024

Asked by Anonymous - Aug 31, 2024Hindi
Money
I want a corpus of 2 crore in next 10 years. How much will be the monthly SIP and pls advise some funds
Ans: You’ve set a goal to accumulate Rs. 2 crore in 10 years. This is ambitious and achievable with disciplined investing. Let's explore how to achieve this.

Estimating the Required Monthly SIP
Target Corpus:
To reach Rs. 2 crore, you need to invest consistently. The amount of monthly SIP depends on expected returns.

Expected Returns:
Assuming a moderate return rate from mutual funds (around 12% per annum), you would need to invest a significant amount every month.

Monthly SIP Calculation:
A Certified Financial Planner would suggest that to achieve Rs. 2 crore, you should consider a monthly SIP of around Rs. 85,000 to Rs. 1 lakh, depending on the exact returns. This might seem high, but it's aligned with your goal.

Importance of Actively Managed Funds
Avoiding Index Funds:
Index funds may not give you the required returns. They follow the market and lack the potential for higher gains. Actively managed funds, on the other hand, are handled by professional fund managers. These managers aim to outperform the market, which could help in reaching your goal faster.

Regular Funds via MFD:
Direct funds might seem cost-effective, but regular funds through a trusted MFD with CFP credentials can provide better long-term results. MFDs offer professional advice, regular reviews, and adjustments to your portfolio. They ensure that your investments stay on track.

Suggested Fund Categories
Large-Cap Funds:
These funds invest in well-established companies. They are stable and offer consistent returns. Allocating a portion to large-cap funds reduces risk while ensuring steady growth.

Mid-Cap Funds:
Mid-cap funds have the potential for higher returns compared to large-cap funds. They invest in companies that are in the growth phase. Including mid-cap funds in your portfolio can enhance your overall returns.

Small-Cap Funds:
Small-cap funds are riskier but offer the possibility of higher returns. These funds invest in smaller companies with high growth potential. A small allocation here can boost your corpus if the companies perform well.

Flexi-Cap Funds:
Flexi-cap funds offer flexibility in investment. They can invest across different market capitalizations based on market conditions. These funds adapt to market changes, which can be beneficial in a volatile market.

Balancing Your Portfolio
Diversification is Key:
Don’t put all your money in one type of fund. A well-diversified portfolio across large-cap, mid-cap, small-cap, and flexi-cap funds will spread risk and optimize returns.

Review Regularly:
Regularly review your portfolio with the help of a Certified Financial Planner. Adjustments might be needed based on market conditions and your financial situation.

Risk Assessment and Management
Understand Your Risk Appetite:
Investing in mutual funds involves risk. It's crucial to understand your risk tolerance. If you're not comfortable with high risk, allocate more towards large-cap and flexi-cap funds.

Stay Invested:
Market fluctuations are normal. Don't panic during market corrections. Staying invested for the long term is key to achieving your financial goals.

Emergency Fund:
Before committing to high SIPs, ensure you have an emergency fund. This fund will cover unexpected expenses and prevent you from dipping into your investments.

Tax Considerations
Tax Efficiency:
Equity mutual funds are tax-efficient. Long-term capital gains (LTCG) up to Rs. 1 lakh per annum are tax-free. Gains above this threshold are taxed at 10%. Plan your investments to maximize tax efficiency.

Section 80C Benefits:
You can also consider tax-saving mutual funds under Section 80C. These funds have a lock-in period of three years but offer tax benefits along with potential returns.

Additional Financial Goals
Retirement Planning:
While working towards your Rs. 2 crore goal, don’t neglect retirement planning. Ensure that you are also contributing towards a retirement corpus. Consider options like PPF, NPS, or dedicated retirement funds.

Insurance Needs:
Ensure you have adequate life and health insurance. These are crucial for financial security. If you hold LIC, ULIP, or other investment cum insurance policies, it might be wise to review them. Surrendering these policies and reinvesting in mutual funds could yield better returns.

Steps to Start Your SIP
Choose a Reputable AMC:
Select a reputed Asset Management Company (AMC) with a good track record.

Consult a Certified Financial Planner:
Seek advice from a Certified Financial Planner to select the best funds suited to your risk profile and financial goals.

Automate Your SIPs:
Set up automatic SIPs to ensure disciplined investing. This reduces the temptation to skip payments and keeps you on track.

Finally
Achieving a Rs. 2 crore corpus in 10 years requires a disciplined approach. With the right selection of actively managed funds and regular monitoring, you can reach your goal. Diversify your investments, stay invested, and consult a Certified Financial Planner to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1031 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 08, 2024

Asked by Anonymous - Nov 08, 2024Hindi
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My son is in grade 10th, he wants to prepare for neet but he went for counselling twice where he had given some test which gave him results to prefer engineering now he is confused if i will not be able to do fare in neet thn what should i opt for since hes planning to go for integrated? Ease help
Ans: Hello.
To which tests your son appeared is not mentioned by you. I am assuming that he may be based to appear for either an IQ test or a DMIT Test. I would like to say that there is no need to 100% trust these tests. The results of these tests depend on the mindset of a student at that time. These tests are never 100% correct. Hence there is no need to worry about the results of these tests and what the counselor has told you.
Here are some key points on which you can work:
(1) Please ask his school teachers about his subject understanding.
(2) Please take an overall review of maths and science subjects from an understanding point of view only.
(3) Have an open talk with your son about his interest either in mathematics or biology.
(4) If possible, try to make an interaction with senior students who are preparing for JEE or NEET.
(5) Even though the coaching is now focussing either on PCM or PCB groups, it is advisable to take all 4 subjects PCMB in the 11th standard.
(6) Take a trial for at least 2 initial months in 11th standard for maths and biology subjects.
(7) Your son will automatically tell his interest in either engineering or medicine.
(8) Don't force your willingness on him to prepare for NEET.
(9) Based on the final decision, you may think of integrated courses.
(10) Your's sons interest matters more. If he is firm to go for NEET, then motivate him and keep the results of counselor tests aside.
Best of luck to your son for his bright future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 08, 2024

Asked by Anonymous - Nov 07, 2024Hindi
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Hi sir/madam, My target is 2 crore corpus by 45 I just saved 5 lacs earning 1 lac per month.I do SIP in 4 SIP each of 5000 monthly. HDFC Flexi plan direct growth-5000, ICICI prudential bluechip fund direct-5000, Kotak flexi cap fund direct-5000, ICICI prudential transportation and logistics fund direct-5000 Please advice me to achieve my goal by 45 years currently I am 35y
Ans: To achieve a Rs 2 crore corpus by age 45, an SIP of Rs 60,000 per month with a 10% annual increase is indeed a strategic approach. Here’s how this plan can align with your target.

Calculating Your Path to Rs 2 Crore
Current SIP Investment: With a starting SIP of Rs 60,000 per month at a 12% CAGR, your investments have the potential to grow substantially over time.

Annual Step-Up: Increasing your SIP by 10% each year harnesses the power of compounding, helping you reach your goal faster. This incremental increase supports growth to match inflation and your rising income.

Expected Growth Rate: With a 12% CAGR, a disciplined 10-year investment horizon should help you accumulate approximately Rs 2 crore. This CAGR is reasonable for equity mutual funds based on historical performance.

Practical Benefits of This Strategy
Power of Compounding: The combination of a 10% step-up and 12% CAGR significantly accelerates growth, turning monthly contributions into substantial wealth over 10 years.

Simplicity in Execution: A single SIP contribution with a systematic increase each year streamlines your investment process, making it easier to manage.

Steps for Success
Commit to the Annual Step-Up: Consistently increasing SIP contributions is crucial. Even during years with market volatility, stick to the increase for long-term gains.

Portfolio Review with a Certified Financial Planner: Annual reviews ensure your portfolio remains aligned with your goals, especially as you approach the 10-year mark.

Final Insights
An SIP of Rs 60,000 with a 10% annual increase and 12% CAGR is a robust plan for reaching Rs 2 crore in 10 years. With disciplined investing and regular review, this strategy should help you reach your financial target by age 45.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,

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

...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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