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Dev

Dev Ashish  |48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Mar 16, 2024

Dev Ashish is a fee-only SEBI-registered investment advisor with over 15 years of active experience in the stock market. In 2011, he founded StableInvestor, a platform for personal finance and financial planning.
He provides professional fee-only investment advisory services to small and high networth individuals in order to help them achieve their financial goals.
Ashish's views are regularly published in national business publications. He has an MBA degree from NMIMS, Mumbai and also holds an engineering degree.... more
Surat Question by Surat on Jan 02, 2024Hindi
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Hi Dev, hello. My grandmother has a corpus of around 30 Lacs which she wants to invest in order to get monthly returns. Please suggest where she should invest keeping in mind her risk appetite is low-medium. Thank you!

Ans: Assuming your grandmother is above 60, she can consider using SCSS or Senior Citizen's Savings Scheme which currently offers 8.2% per annum. The SCSS interest is paid out quarterly. So for a corpus of Rs 30 lakh in SCSS, she will get about Rs 61,500 per quarter - which translates into Rs 20-21,000 in monthly interest income.
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  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Asked by Anonymous - Apr 08, 2024Hindi
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I am going to retire on 01.11.2024 and i will be receiving 25 lacs as my retirement fund. Please suggest where should i invest and how monthly amount i will received.
Ans: Congratulations on your upcoming retirement! It's an exciting milestone, and careful planning can make it even more fulfilling.

With a retirement fund of 25 lakhs, you have a good starting point for your post-retirement financial journey.

To ensure a steady income stream, consider investing a portion of your retirement corpus in a mix of conservative investment options such as fixed deposits, senior citizen savings scheme, and debt mutual funds.

These options offer relatively stable returns with lower risk, ideal for generating regular income during retirement.

Allocate another portion towards equity mutual funds, which have the potential for higher returns over the long term. While they carry more risk, they can help your retirement corpus grow to combat inflation and sustain your lifestyle.

Consulting with a Certified Financial Planner can help tailor an investment strategy that aligns with your risk tolerance, financial goals, and retirement timeline.

As for calculating your monthly income, it depends on various factors such as the returns generated by your investments, withdrawal strategy, and inflation rate.

A common approach is the systematic withdrawal plan (SWP), where you withdraw a fixed amount regularly from your investments. The SWP amount can be adjusted annually based on your financial needs and investment performance.

Ensure your investment strategy provides enough liquidity to cover your monthly expenses while also preserving your capital for the future.

Retirement is a new chapter in your life, filled with opportunities to pursue your passions and dreams. With careful planning and smart investment decisions, you can enjoy a financially secure and fulfilling retirement journey.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 28, 2024Hindi
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Dear Sir, Good Evening!! I have a corpus of around 18 Lacs. I am around 49Years of age having a contractual job having monthly salary of 40 Thousand. Please suggest how and where to invest this amount(%-Stocks/Mutual Fund etc.) to have safe and good returns to have a good financial stability in future.
Ans: With your corpus and income, you're in a good position to plan for your financial future. Here are some suggestions tailored to your situation:

Emergency Fund: Ensure you have an emergency fund equivalent to 6-12 months' worth of expenses in a liquid savings account or a short-term fixed deposit. This will provide you with financial security in case of unexpected expenses or loss of income.
Debt Repayment: If you have any high-interest debt, consider using a portion of your corpus to repay it. Paying off debt can provide a guaranteed return by reducing interest expenses.
Retirement Planning: As you're nearing retirement age, prioritize building a retirement corpus. Consider investing in a mix of equity and debt mutual funds based on your risk tolerance and investment horizon. A Certified Financial Planner can help you determine the appropriate asset allocation.
Asset Allocation: Given your age and risk profile, consider a conservative asset allocation with a higher allocation to debt instruments such as fixed deposits, bonds, and debt mutual funds. You can allocate a smaller portion to equity mutual funds for potential growth.
Diversification: Diversify your investments across different asset classes, sectors, and geographies to reduce risk. Avoid putting all your eggs in one basket.
Regular Review: Periodically review your investment portfolio to ensure it aligns with your financial goals, risk tolerance, and changing market conditions. Rebalance your portfolio if necessary.
Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized advice based on your financial situation and goals. They can help you create a comprehensive financial plan and make informed investment decisions.
By following these strategies and seeking professional guidance, you can work towards achieving financial stability and security for the future. Remember to invest patiently and stay focused on your long-term goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

Asked by Anonymous - May 19, 2024Hindi
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I want to invest Rs. 70 lacs at the moment and wanting a corpus of Rs. 1.2 cr for my daughters overseas education in the next 5-5.5 years. Where should i invest?
Ans: Investing ?70 Lakhs for Your Daughter's Overseas Education
Understanding Your Financial Goal
You aim to grow ?70 lakhs into ?1.2 crores within 5 to 5.5 years for your daughter's overseas education. This goal requires a strategic investment plan that balances growth and risk.

Your commitment to securing your daughter's future through overseas education is commendable. Planning well in advance demonstrates foresight and dedication to providing the best opportunities for your child.

Evaluating Investment Options
Equities and Equity Mutual Funds
Equities can provide high returns, essential for your goal. Investing in diversified equity mutual funds or blue-chip stocks can help achieve significant growth. However, equities come with volatility, so a balanced approach is necessary.

Actively Managed Mutual Funds
Actively managed funds, overseen by experienced fund managers, can outperform index funds. These funds adapt to market conditions and can potentially deliver higher returns. Investing through a certified financial planner (CFP) ensures professional guidance and tailored strategies.

Debt Funds
Debt funds offer stability and are less volatile compared to equities. Including debt funds in your portfolio can provide balance and reduce overall risk. They are crucial for safeguarding part of your investment against market downturns.

Balanced or Hybrid Funds
Balanced or hybrid funds invest in both equities and debt instruments. They offer a mix of growth and stability, making them suitable for medium-term goals like yours. These funds aim to balance risk and return effectively.

Creating a Diversified Portfolio
Equity Mutual Funds
Allocate a significant portion of your investment to equity mutual funds. Choose funds with a strong track record and consistent performance. Diversify across large-cap, mid-cap, and multi-cap funds to spread risk and capture growth across market segments.

Debt Funds
Invest a portion in debt funds to ensure stability. Opt for short-term or medium-term debt funds, which can provide steady returns with lower risk compared to long-term debt funds.

Balanced Funds
Consider investing in balanced funds to blend growth and stability. These funds dynamically allocate assets between equities and debt, adjusting to market conditions. They can offer a smoother investment journey with reasonable returns.

Regular Review and Adjustment
Monitoring Performance
Regularly review your portfolio’s performance. This helps in making timely adjustments based on market trends and your investment goals. Monitoring ensures that your investment stays on track to meet your target.

Rebalancing Portfolio
Rebalance your portfolio periodically to maintain the desired asset allocation. Rebalancing involves shifting funds between equities and debt based on market performance and your risk tolerance. It helps in managing risk and optimizing returns.

Professional Guidance
Importance of a Certified Financial Planner
Engaging a certified financial planner (CFP) can significantly enhance your investment strategy. A CFP offers personalized advice, aligns your investments with your goals, and helps navigate complex financial decisions.

Benefits of Actively Managed Funds
Actively managed funds, recommended by CFPs, can provide superior returns by leveraging market expertise. These funds are more adaptable to market changes compared to index funds, making them suitable for achieving specific financial goals.

Avoiding Common Pitfalls
Disadvantages of New Fund Offers (NFOs)
NFOs often lack a track record, making it challenging to assess their performance. Established funds with a proven history are generally safer and more predictable choices.

Risks of Sectoral Funds
Sectoral funds focus on specific industries, which can be risky due to sector volatility. Diversified funds spread across various sectors offer a more balanced risk-return profile.

Conclusion
Investing ?70 lakhs to reach ?1.2 crores in 5 to 5.5 years for your daughter’s education requires a balanced and strategic approach. Diversify across equity mutual funds, debt funds, and balanced funds. Regularly review and rebalance your portfolio to stay on track. Seek guidance from a certified financial planner to optimize your investment strategy.

Your proactive approach and dedication to your daughter’s future are admirable. By following these steps, you can achieve your financial goal with confidence and security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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