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Nikunj

Nikunj Saraf  | Answer  |Ask -

Mutual Funds Expert - Answered on Dec 15, 2022

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more
Nitish Question by Nitish on Dec 15, 2022Hindi
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I want to create a corpus of 5-10 cr in next 10 years. I started some sips in 2018 of small amount of 2k with a PPF of 1.5L annually. With this amount I have still now 19L as saved amount. Now I have paused my previous sips and started new sips with a financial firm. They are listed below:

1-  IIFL focused Equity fund(G) - 130000 one time deposit from redemption of one earlier sips which was not performing well.

2-  Canara Bluechip Equity fund(G) - 130000 one time deposit from redemption of one earlier sips which was not performing well.

3-  SBI Contra(G) - 130000 one time deposit from redemption of one earlier sips which was not performing well.

4-  IIFL focused Equity fund(G) - 25000rs SIP monthly started

5-Canara Bluechip Equity fund(G) - 25000rs SIP monthly started 6-SBI Contra (G) - 20000rs SIP monthly started

7- SBI Smal cap fund (G)- 10000rs SIP monthly 8- Canara Roberco Small cap- 10000rs SIP

I intend to save 90K to 1 L a month. What is the maximum corpus I can create with this saving in next 10 years?

Also PPF of 1.5L annually. I have a lump sum of 25L to 30L annual salary. Please suggest and guide me if I can do something more better. I have not redeemed all of my previous sips and effect of compounding is still on. With the withdrawal ones I have 9L plus 8.40L if PPF. Right now I'm 32 years and plan to retire at 45 to 50 looking for retirement planning. Please guide.

Ans: Hello Nitish Kumar. Depending on your goal of creating 5 crore of corpus, you can increase the amount of your SIP up to 1.59 Lakh. With current investment values of SIP and Lump sum, you may be able to achieve a corpus of 3.2 crore. Regarding your current investment, it appears that you have thoroughly researched the mutual fund market. A fine selection of schemes is made. I would suggest diversifying your portfolio by AMC and category. For future SIPs, you may introduce midcap, flexicap, and largecap categories.

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  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Sir Sangayya hear from Karnataka my age is 43 from last 3 years I started my SIP details r as below 1 ELSS - 5 sips each 1k 2. Large & mid cap fund - 3 sips 1k each 3. Thematic fund - Franklin India opp - 5k 4. Multi asset allocator - Tata 5k 5.Flexi cap fund - 2 Sips 1k each 6. Dynamic Asset - Edelweiss balanced Adv fund 1k 7. Small cap - Nippon India 1k Total monthly 22k is my investment kindly suggest I want to build my corpus 1cr in another 10 year & how much I have to invest more to achieve Target
Ans: Hello Sangayya, it's great to see your commitment to building your financial future through SIP investments. Let's break down your goal of reaching a corpus of 1 crore in 10 years and assess your current investment approach:

Review Current Investments: Evaluate the performance of your existing SIPs relative to their benchmarks and peers. This will help you understand if adjustments are needed to optimize your portfolio for growth.
Assess Required Monthly Investment: To reach a corpus of 1 crore in 10 years, you'll need to calculate the required monthly investment based on your expected rate of return. This depends on factors like the type of funds you're investing in and prevailing market conditions.
Consider Increasing SIP Amount: If your current monthly investment of 22k isn't sufficient to reach your goal, you may need to increase your SIP amounts or explore additional investment avenues. A Certified Financial Planner can help you determine the optimal investment strategy based on your risk tolerance and financial goals.
Stay Consistent and Patient: Building a substantial corpus takes time and discipline. Stay committed to your investment plan, continue SIPs regularly, and avoid making emotional decisions based on short-term market fluctuations.
Regular Portfolio Review: Periodically review your portfolio's performance and make adjustments as needed. Rebalancing your investments and exploring new opportunities can help you stay on track towards achieving your financial goals.
Remember, while setting ambitious targets is commendable, it's essential to ensure that your investment strategy is realistic and aligned with your risk tolerance and financial capacity. With careful planning and perseverance, you can work towards building a significant corpus over the next decade.

..Read more

Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 16, 2024

Asked by Anonymous - Jun 16, 2024Hindi
Money
Hello sir, I want to save a corpus of 1crore in next 10 years. Currently I am investing 6k in UTI nifty 50 index fund and 5k in parag Parikh flexicap growth fund. Can you tell me by how much I need to increase SIP and do I need to change these plans
Ans: Evaluating Your Current Investment Strategy
First, congratulations on setting a clear financial goal and already taking steps towards it by investing regularly. Your dedication to saving and investing will pay off in the long run. Currently, you are investing Rs. 6,000 in the UTI Nifty 50 Index Fund and Rs. 5,000 in the Parag Parikh Flexicap Growth Fund. Let's examine these investments and assess how you can achieve your goal of Rs. 1 crore in the next 10 years.

Understanding Index Funds
Index funds, like the UTI Nifty 50 Index Fund, are designed to replicate the performance of a specific index, in this case, the Nifty 50. While they offer low-cost exposure to a broad market, they also come with limitations. Index funds are passive investments and do not attempt to outperform the market. They strictly follow the index, which means they can underperform during market downturns or periods of high volatility.

Benefits of Actively Managed Funds
Actively managed funds, such as the Parag Parikh Flexicap Growth Fund, aim to outperform the market through strategic stock selection and portfolio management. These funds offer the potential for higher returns as fund managers actively seek out opportunities and manage risks. Given the market's potential fluctuations over the next decade, actively managed funds might provide better risk-adjusted returns compared to passive index funds.

Evaluating Your Current SIPs
Currently, your total monthly SIP investment is Rs. 11,000. To achieve a corpus of Rs. 1 crore in 10 years, it's essential to evaluate whether this amount is sufficient or if it needs to be increased. Considering an average annual return, it's likely that you may need to increase your SIP contributions to meet your goal.

Calculating the Required SIP
Let's consider the need to increase your monthly SIP to achieve your goal of Rs. 1 crore in the next 10 years. Without diving into specific calculations, generally speaking, increasing your SIP amount will help you reach your target more comfortably.

Increasing SIP Contributions
Based on general growth projections, you may need to increase your monthly SIP to around Rs. 15,000 to Rs. 20,000. This estimate assumes an average annual return that actively managed funds can potentially deliver.

Phased Increase Approach
If an immediate increase to Rs. 20,000 per month is challenging, consider a phased approach. Gradually increase your SIP amount every year. For example, start with Rs. 15,000 and increase it by a certain percentage annually. This method helps manage the impact on your monthly budget while progressively moving towards your goal.

Diversifying Your Investment Portfolio
Exploring Other Actively Managed Funds
While the Parag Parikh Flexicap Growth Fund is a solid choice, consider diversifying into other actively managed funds. Diversification helps spread risk and enhances potential returns. Look for funds with strong track records, experienced fund managers, and consistent performance.

Sector-Specific and Thematic Funds
Sector-specific or thematic funds can provide higher returns by focusing on growing industries. For example, technology, healthcare, or renewable energy funds have shown strong growth potential. However, these funds come with higher risks due to their concentrated exposure, so they should only form a small part of your portfolio.

International Equity Funds
International equity funds invest in global markets, providing exposure to international companies and economies. These funds offer diversification benefits and reduce country-specific risks. Including a small portion of international funds can balance your portfolio and enhance returns.

Reviewing and Rebalancing Your Portfolio
Regular Portfolio Review
Review your portfolio at least once a year to ensure it aligns with your financial goals and market conditions. Regular reviews help identify underperforming investments and rebalance your portfolio as needed.

Rebalancing Strategy
Rebalancing involves adjusting the allocation of your investments to maintain your desired asset mix. For example, if one fund significantly outperforms, it may become a larger portion of your portfolio than intended. Rebalancing ensures you maintain your risk tolerance and investment strategy.

Monitoring Fund Performance
Keep track of the performance of your funds. Compare their returns against benchmark indices and peer funds. Consistently underperforming funds should be reviewed and possibly replaced with better-performing alternatives.

Tax-Efficient Investment Strategies
Utilising Tax Benefits
Maximise contributions to tax-saving instruments like Equity Linked Savings Scheme (ELSS) for Section 80C benefits. Tax-efficient investing enhances your overall returns and reduces your tax liability.

Long-Term Capital Gains
Investing with a long-term perspective (more than one year) can benefit from lower capital gains tax rates. Holding investments for the long term also helps ride out market volatility and compound returns effectively.

Building a Comprehensive Financial Plan
Setting Clear Financial Goals
In addition to your Rs. 1 crore corpus goal, set other financial goals like retirement planning, children's education, or buying a home. Having clear goals helps in creating a structured financial plan.

Budgeting and Saving
Create a detailed budget to track your income and expenses. Identify areas where you can cut unnecessary costs and redirect those savings towards your investments. Budgeting ensures disciplined saving and investing.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of living expenses. An emergency fund provides a financial cushion during unexpected situations, preventing you from liquidating long-term investments prematurely.

Engaging Professional Guidance
Certified Financial Planner Expertise
Engaging a Certified Financial Planner (CFP) can provide valuable insights and personalised advice. A CFP can help you create a comprehensive financial plan, considering your goals, risk tolerance, and time horizon. They can also assist in selecting suitable investment options, monitoring performance, and making necessary adjustments.

Risk Management
A CFP can help identify and manage risks associated with your investments. They can recommend appropriate insurance coverage, asset protection strategies, and contingency plans to safeguard your financial future.

Retirement Planning
In addition to your Rs. 1 crore goal, consider long-term retirement planning. A CFP can help you estimate the corpus needed for retirement and create a plan to achieve it. Investing in a mix of equity, debt, and other instruments can provide a balanced retirement portfolio.

Leveraging Digital Tools and Resources
Investment Tracking Tools
Use digital tools and apps to track your investments, monitor performance, and manage your portfolio. These tools provide real-time updates and insights, helping you stay on top of your financial goals.

Educational Resources
Educate yourself about investing and financial planning through online courses, webinars, and articles. Understanding the basics of investing empowers you to make informed decisions and manage your portfolio effectively.

Automated Investing
Consider using automated investment services that offer robo-advisory. These platforms provide algorithm-based investment advice, portfolio management, and rebalancing, making investing simpler and more accessible.

Final Insights
Achieving a corpus of Rs. 1 crore in 10 years is a realistic goal with disciplined investing and strategic planning. Increasing your SIP contributions and diversifying your portfolio into actively managed funds can help you reach your target. Regularly review and rebalance your investments to ensure they align with your financial goals. Utilise tax-efficient strategies and maintain a comprehensive financial plan that includes budgeting, emergency funds, and long-term retirement planning.

Engaging a Certified Financial Planner can provide personalised advice and ongoing support. Leverage digital tools and educational resources to enhance your understanding of investing and stay informed about market trends. Your commitment to saving and investing is commendable, and with a structured approach, you can achieve your financial goals and secure a stable financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Asked by Anonymous - Nov 03, 2024Hindi
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Hi, I am 30 years old not married & now my parents are forcing me to get married. I think i am good looking guy. It's not like i have never been with girls. I have had brief flings with multiple girls. And there was one girl whom i was in a platonic relationship with with lot of emotional sharing & have spent a lot of time with her. The same goes with another girl. Both of them have told me that i have been pretty cool & girls would like me to be their bf or husband. But i am not able to accept anyone because of the guilt that of my past that i never had a relationship. Never been able to tell anyone that i had a gf. I know this is wrong to compare my life but i can't stop thinking that way. Can you tell me what to do? Like a contsant regret of not having a very steamy cool fancy relationship from outside. I know relationships have it's own ups & downs. But this guilt is killing me that i missed out lot of things in life & if get married in an arranged marriage i would feel myself to be a looser who couldn't even find a girl on his own. Though i know all of these comparisons are wrong & i should be rational. I am not able to help it. Please help me out
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Hi, I got married to my ex gf in an arranged setup. I had a 7 year of relationship with her before breakup. My career switch try from private to govt job was the reason. When I failed I returned back to corporate. 3 years after the breakup her father who is a good friend of my father sent proposal which led to our marriage. No one knew that we dated. We never had a word between the acceptance and marriage. None of us initiated the conversation. When she came after marriage her behavior towards me in private is totally strange. We never had an emotional conversation. Neither we discuss romance nor intimacy. In private we hardly have any intellect discussions which was an eternal part before our breakup. But when she is in public she behaves like she cares for me a lot. She is a darling of everyone in the house whether my parents or siblings. Most of the time she remains with my mother and she has good bond. In front of her she cares for me a lot. She had this double faced attitude from the first day. Our intimacy is limited to my ask she could agree or disagree but she never initiated it. She was pretty passionate before our breakup which I never saw after our marriage. I tried everything but nothing has happened she never opened up. She disconnected with almost all our mutual friends after marriage. Whenever I tried through some of her friends she says to them I overthink a lot. Marriages and relationships differs. All useless and weird reasons. Everyone blames my teenage short temper issue. Which I have completely overcame when I started working. After marriage we had a boy. She says no for a next child for which I am fine. But the problem is now my child is growing and she has started understanding her hypocrisy. Now she blames me for teaching him wrong things. We hardly had fights as she walks out or I won't say word usually after she didn't answer for anything. I am unable to see the light in this relationship. She had 3 relationships in between but I never had one which I never discussed. Now I hardly ask for anything. Day by day we are becoming only room partners or fake couples in public. Everyone sees her as an ideal daughter in law or wife due to her public hypocrisy. Please guide.
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I want to give NEET exam but my 12th in Maharashtra Board marks are less than 150 in PCB (general), so I am not eligible. can I give retest of 12th to get better marks so that I can give NEET.
Ans: Hi, Being a retest candidate is considered a second attempt in +2. I think the medical council will not allow admission to medicine. Instead, you can consider B.Pharm / Pharm D.

To join, the following are the requirements:

For pharm D: Minimum qualification for admission to. – a) Pharm.D. Part-I Course – A pass in any of the following examinations - (1) 10+2 examination with Physics and Chemistry as compulsory subjects along with one of the following subjects: Mathematics or Biology. (2) A pass in D.Pharm course from an institution approved by the Pharmacy Council of India under section 12 of the Pharmacy Act. (3) Any other qualification approved by the Pharmacy Council of India as equivalent to any of the above examinations. Provided that a student should complete the age of 17 years on or before 31st December of the year of admission to the course.

FOR B.PHARM:
Minimum qualification for admission to – A. First year B. Pharm – A pass in any of the following examinations - i. Candidate shall have passed 10+2 examination conducted by the respective state/central government authorities recognized as equivalent to 10+2 examination by the Association of Indian Universities (AIU) with English as one of the subjects and Physics, Chemistry, Mathematics/Biology as optional subjects individually. “However, the students possessing 10+2 qualification from non-formal and non-class rooms based schooling such as National Institute of Open Schooling, open school systems of States etc. shall not be eligible for admission to B.Pharm Course.” ii. Any other qualification approved by the Pharmacy Council of India as equivalent to any of the above examinations. Provided that a student should complete the age of 17 years on or before 31st December of the year of admission to the course. Provided that there shall be reservation of seats for the students belonging to the Scheduled Castes, Scheduled Tribes and other Backward Classes in accordance with the instructions issued by the Central Government/State Government/Union Territory Administration as the case may be from time to time.

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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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