Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |7206 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 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

Question by Antony on May 04, 2024Hindi

Hi, I have to create a corpus of 2 cr for my kids education in 5 years. What is your advise on investments, including MF, Equities, and other schemes pls ?

Ans: It's great that you're planning ahead for your kids' education. Achieving a corpus of 2 crores in 5 years requires a disciplined investment approach with a focus on growth potential and risk management. Here's some advice on suitable investment avenues:

Equities: Investing in equities can offer higher returns over the long term. Consider allocating a portion of your investment towards well-researched stocks or equity mutual funds. While equities come with volatility, they have the potential to outperform other asset classes.
Mutual Funds: Mutual funds provide diversification and professional management, making them a popular choice for goal-based investing. Opt for a mix of equity and debt mutual funds based on your risk tolerance and investment horizon. Equity funds can offer growth potential, while debt funds provide stability.
Systematic Investment Plan (SIP): SIPs allow you to invest regularly in mutual funds, helping you benefit from rupee-cost averaging and reduce the impact of market volatility. Start SIPs in suitable mutual funds to gradually build your corpus over the next 5 years.
Debt Instruments: Considering the short investment horizon, include debt instruments like fixed deposits, debt mutual funds, or short-term debt funds in your portfolio. These instruments offer stability and capital preservation, which is essential when your goal is nearing.
Regular Review and Rebalancing: Periodically review your investments to ensure they are aligned with your goal of creating a 2 crore corpus for your kids' education. Rebalance your portfolio as needed to maintain the desired asset allocation and risk level.
It's crucial to consult with a Certified Financial Planner to create a personalized investment plan tailored to your financial goals, risk tolerance, and investment horizon. They can help you make informed decisions and navigate the complexities of the market.

By adopting a diversified and disciplined investment strategy, you can work towards achieving your goal of funding your kids' education with a 2 crore corpus in 5 years.

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.