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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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Ramalingam Kalirajan |7592 Answers |Ask -Follow

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

Ramalingam Kalirajan |7592 Answers |Ask -Follow

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

Asked by Anonymous - Dec 13, 2024Hindi

Money

I have a sum of 1.5 lakh rupees which I want to invest but in diverse options. What could be such schemes for investment long term

Ans: Investing Rs. 1.5 lakh is a great opportunity to build a solid portfolio. A diversified approach ensures balanced risk and stable long-term growth. Below are well-suited options to consider for your investment.

Mutual Funds for Wealth Creation
1. Equity Mutual Funds
These funds are ideal for long-term goals.
They invest in stocks and offer high returns compared to other instruments.
Actively managed funds help you outperform market indices.
2. Balanced Advantage Funds
These funds balance equity and debt investments.
They reduce volatility while offering reasonable returns.
Suitable for moderate risk appetite and long-term growth.
3. Debt Mutual Funds
These funds are safer and provide predictable returns.
Useful for preserving capital and managing portfolio risk.
Invest in debt funds for goals within 3-5 years.
Government-Backed Schemes
4. Public Provident Fund (PPF)
PPF offers guaranteed returns with tax benefits.
The lock-in period is 15 years, aligning with long-term goals.
Interest earned is tax-free and compounds annually.
5. Sukanya Samriddhi Yojana (SSY)
Consider SSY if you have a daughter under 10 years of age.
High fixed returns and tax benefits make it a secure option.
Ideal for building a corpus for your daughter’s education or marriage.
6. National Pension System (NPS)
NPS is designed for retirement planning.
It provides equity exposure with low management costs.
Tax benefits under Section 80C and 80CCD (1B) enhance returns.
Gold as a Strategic Investment
7. Sovereign Gold Bonds (SGBs)
SGBs offer the benefit of gold investment without storage concerns.
These bonds provide annual interest along with gold price appreciation.
Ideal for long-term wealth preservation and diversification.
Emergency Fund and Liquid Options
8. Liquid Mutual Funds
Allocate a small portion to liquid funds for emergencies.
These funds offer easy withdrawal and low risk.
Returns are better than traditional savings accounts.
9. Recurring Deposits or Fixed Deposits
Recurring deposits help you create a short-term savings buffer.
Fixed deposits offer guaranteed returns but are less tax-efficient.
Insurance-Cum-Investment Policies
10. Review Existing LIC or ULIP Policies
Insurance-cum-investment products often deliver low returns.
Assess the surrender value of such policies.
Reinvest the amount in mutual funds for better returns.
Suggested Allocation Strategy
To diversify Rs. 1.5 lakh, consider this allocation:

Rs. 50,000: Equity Mutual Funds for long-term wealth creation.
Rs. 30,000: Balanced Advantage Funds for moderate risk exposure.
Rs. 20,000: Public Provident Fund for secure, tax-free growth.
Rs. 20,000: Sovereign Gold Bonds for diversification.
Rs. 30,000: Liquid Funds for emergencies or short-term needs.
Tax Efficiency
Mutual funds provide tax efficiency for long-term gains.
LTCG above Rs. 1.25 lakh is taxed at 12.5% for equity mutual funds.
Debt mutual funds are taxed as per your income slab.
Government-backed schemes like PPF and SSY offer tax-free returns.
Finally
Your Rs. 1.5 lakh can grow steadily through diversified investments.

Mutual funds should form the core of your portfolio for wealth creation.

Add secure options like PPF and SGBs for balance and stability.

Review your existing LIC policies and move towards higher-return investments.

Stay disciplined and monitor your portfolio regularly with the help of a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ans: Dear Anonymous,
I understand that you are in a tricky situation. First, let's acknowledge that couples who decide to get intimate are not "bad." Their choice is just different from yours. You can try to explain the same to your mother- though it will be tough, everyone needs to understand this. Secondly, in this situation, all you can do is let her know that her upbringing will never allow you to lie to your mom or cross boundaries that will hurt her and your dad. This way, you might be able to regain her trust.
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Asked by Anonymous - Jan 11, 2025Hindi

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I am a 20 years old guy and in my past romantic relationships, have shown signs of emotional instability, too much dependency and lack of awareness of boundaries which affected my relationships badly...I hadn’t interacted with people in a long while since 2020 (precisely when lockdown had started) and feel that some aspects of my personality are not developed fully as they should be at this age. How to work on this? Also, i have noticed that I am able to create a good first impression but it soon pales and I feel like I am subtly disrespected or talked down to, and this has been happening in all interactions...i am always respectful (often to a fault!) and even have people pleasing tendencies...i sometimes ask immature weird questions and that might probably be the reason (but they’re never inappropriate)...but i do want to gain insights into why i am experiencing what i am and how to navigate this situation well so that I can maintain healthy relationships in future. Thanks you!

Ans: Dear Anonymous,
First of all, I want you to understand that it is no small feat to realize the quirks and imperfections in ourselves- you have done it. Your effort to understand and rectify them deserves to be acknowledged and appreciated.
Now, coming to your question, I can only give you some general advice on each-
Emotional instability and dependency- these behavioral patterns can stem from various factors; it can be a lack of confidence or some past issues that are left unresolved. It is difficult for me to tell you exactly why it is happening. It can also arise from a lack of validation. To manage it, you can focus on self-regulation- like meditation or journaling whenever you feel these emotions rising. This way you are expressing them but not damaging your relationships. Take up new hobbies or goals. Achieving milestones can build confidence.
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Asked by Anonymous - Jan 09, 2025Hindi

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I’ve been in a relationship with a girl for the past 4 years, but due to various issues, things have become extremely complicated. Her father doesn’t approve of me, and my mother doesn’t like her either. Despite this, we’ve managed to stay together all these years. The problem is now escalating. My family is pressuring me to marry someone else, but I’m unable to leave her. At the same time, I feel I can’t marry her either because of her behavior and the ongoing issues with my family. I’ve tried to ask her to change certain things, but she hasn’t made any efforts in that direction. To make matters worse, her mother supports our relationship and trusts me, which makes it even harder for me to walk away. I don’t want her to marry someone else, but I also feel stuck because of my family’s expectations and the challenges in our relationship. Even If I leave her I don't know what she is going to do. What should I do in this situation to make the best decision for everyone involved?

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Your family's disapproval complicates things further, but it's important to remember that this is your life and relationship. While their opinions are significant, they shouldn't be the sole deciding factor in your happiness. Balancing respect for their wishes with your own needs is a delicate task, but ultimately, you need to make a decision that feels right for you.

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Relationships Expert, Mind Coach - Answered on Jan 20, 2025

Asked by Anonymous - Jan 09, 2025Hindi

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My age is 41 years. I have two kids. Nurturing n looking after them n whole home single handedly. I am a visiting faculty in a institute . Earns very nominal earning. My husband hits me, taunts me and use very arrogant words to me like tumhe belt se maarunga n similar many worst words. His family has been always unsupportive to me . Now after 16 years of marriage, he still wants me to please his mother n other family. Which I completely avoid as they have never supported me and always boycotted me. His real brother is in politics and all family members including his cousins do follow him and boycotted me n husband. Now for everything my husband blames me and says if you gave pleased them, all might have good. But inspite of pleasing them a lot , they are like treating me like I am a stranger. I handle n manage everything still by the end of the day.... everything is in vain. Husband says...What you did for home? I will never ever give my money to you and so on. I am literally in trouble thoughts, what to do ? I even many times thought to end my life but my kids are the reason I continuously bears everything. Please suggest what shall I do.

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In situations like this, it’s crucial to find support outside the immediate family. Reach out to trusted friends, family members, or support groups who can offer you emotional strength and practical advice. Consider speaking with a counselor or therapist who can help you navigate these complex emotions and provide strategies for dealing with the abuse and stress.

You’ve shown immense resilience, especially for your children. They need you to be strong, and seeking help is a vital step in preserving your mental and emotional well-being. Remember, prioritizing your health is not selfish; it’s necessary for you and your children’s future.

Also, explore any legal avenues or resources available for individuals in abusive relationships. Local support organizations, legal aid, or women’s shelters can provide advice and assistance if you decide that leaving the relationship is the best option for your safety and well-being.

You have already shown great courage by managing so much on your own. Continue to seek out support and know that you are not alone in this journey. There are people and resources willing to help you find a path to a healthier and more secure life.

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Insurance, Stocks, MF, PF Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 04, 2025Hindi

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I am in debt trape around 8.5 lac with personal loan and credit card due

Ans: Hello;

What is your current monthly income?

Do you have any disposable asset?

Please take your family and friend circle into confidence and explain your difficult situation.

First priority should be to settle credit card dues since they have a very high rate of interest.

Remember the age old saying to cut your cloth according to your size.

Stop using credit cards since it cultivates tendency of reckless spending in the absence of rigorous discipline.

Henceforth do not borrow except for home loan, as far as possible.

Best wishes;

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Asked by Anonymous - Jan 20, 2025Hindi

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I am investing in Quant active fund MF from last 12 months now and since then I am experiencing negative returns. should I stay invested or switch? If stay invested, then advise approx time to invest ?

Ans: Hello;

If you have invested for the long term(7+ years) then you should not get bogged down by such short term market volatility and drawdowns causing negative returns.

However some allegations of unfair practices against Quant AMC have surfaced.

In the backdrop of these events you may move your investment to another fund in the same category.

Happy Investing;
X: @mars_invest

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Tax Expert - Answered on Jan 20, 2025

Question by Kanagaraj - Dec 24, 2024Hindi

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Hi sir, I transfered 3 lakhs to my friend in 2023 as loan through bank transfer. If he repay that without any interest in 2024, should I pay income tax?

Ans: You should get the amount back through banking channel only. You would have to pay any tax on it, since this is not your income, but just return of temporary loan without interest, to your friend.
Most welcome for any further clarifications. Thanks.

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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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