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Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on May 05, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more

Question by Sachin on Apr 05, 2023Hindi

Money

Cumulative compounding is considered to be fruitful for long term regular investment. Pls suggest the investment option for same.

Ans: Sachin
In simple words, compounding implies interest on interest. So technically even a savings bank account is cumulative if you let your interest earned remain there and then it earns interest later. However, it is not a long term investment avenue by any stretch of imagination.

I would recommend Mutual Funds (MFs) for you. If you're comfortable with equity, take Equity MFs. Or else take hybrid MFs. If you're not very sure of your ability to pick the right ones and make a proper portfolio and review it regularly, take the help of a good financial advisor for the same.

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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Question by Praveen - Nov 30, 2022Hindi

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I am 48-yr-old, looking for best investment plan where I can get compounding interest. 1. investing 10 lakh in one go for 10 yrs 2. investing 10 to 15k monthly for 5 yrs to 10 yrs Please advice HDFC capital guarantee solution plan or any other plans.

Ans: Hi Praveen. It depends entirely on your investment mode. Both lump sum and sips are good. In comparison, sip facilitates the averaging out of risk and price per unit. With sip, retail investors can invest per month in small contributions, which simplifies consistency in investing.

Compared to lump sum, with 10 lakh invested one time, the difference in the accumulated corpus is not much for a ten-year horizon, with SIP 15k per month. In end sip is a better alternative for risk diversification and capital growth.

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

Question by Tushar - Jul 04, 2024Hindi

Money

Want to start investment. 5000 per month . For building growth and use power of compounding. Which option shall i use for investment

Ans: Investing Rs 5000 per month through SIPs (Systematic Investment Plans) is a smart move. This allows you to leverage the power of compounding and grow your wealth over time.

Advantages of SIPs
Regular Investment: Invest a fixed amount regularly.
Cost Averaging: Buy more units when prices are low.
Discipline: Promotes disciplined investing.
Compounding: Earn returns on your returns.
Recommended Investment Options
1. Actively Managed Equity Funds
Growth Potential: Equity funds have higher growth potential.
Professional Management: Managed by experts.
Diversification: Invests in a diversified portfolio of stocks.
2. Diversified Equity Funds
Balanced Risk: Mix of large-cap, mid-cap, and small-cap stocks.
Consistent Returns: Aim for stable and consistent returns.
3. Balanced Funds
Moderate Risk: Combination of equity and debt.
Stable Returns: Provides stability with moderate growth.
Benefits of Actively Managed Funds
Research-Driven: Fund managers perform thorough research.
Market Adaptation: Can adapt to market changes.
Higher Returns: Aim to outperform benchmark indices.
Avoiding Index Funds
Limited Flexibility: Passive management, no market adaptation.
Potentially Lower Returns: May not outperform active funds.
Long-Term Strategy
1. Consistent Investment
Regular SIPs: Keep investing Rs 5000/month.
Long-Term Horizon: Stay invested for 5-10 years or more.
2. Annual Review
Monitor Performance: Regularly review your investment performance.
Adjust if Needed: Make changes based on market conditions and personal goals.
3. Step-Up SIP
Increase Amount: Increase your SIP amount annually.
Enhance Growth: Boosts your investment growth over time.
Power of Compounding
Reinvest Returns: Keep reinvesting your returns.
Growth Over Time: Small amounts grow significantly over long periods.
Seeking Professional Guidance
1. Certified Financial Planner
Tailored Advice: Get personalized investment advice.
Financial Goals: Align investments with your financial goals.
Final Insights
Starting with a SIP of Rs 5000 per month is a great decision. Focus on actively managed equity funds and diversified equity funds. Avoid index funds for better flexibility and potential returns. Regularly review and step-up your SIPs to maximize growth. Seek guidance from a certified financial planner to ensure your investments align with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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What is the upper age limit for CA course and mbbs course.

Ans: The ICAI's Chartered Accountancy (CA) course in India has no upper age limit, allowing anyone to enroll. The MBBS course, however, has no upper age limit for general categories and reserved categories, as per the National Medical Commission's guidelines and NEET-UG entrance exam rules, subject to minimum Educational Qualfications. However, stay updated on these guidelines from the Official Websites of ICAI & NTA respectively. All the BEST for Your Prosperous Future.

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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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