Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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
Manoj Question by Manoj on Nov 10, 2023Hindi
Listen
Money

Hi sir I am fourty right now.and i want to retaire at 60.after retirement i want to atleast 1 lakh or 1 lakh+ monthly. Now where should i invest

Ans: To achieve your retirement goal of generating at least 1 lakh or more monthly income after retiring at 60, consider a combination of retirement-focused investments. Start by maximizing contributions to retirement accounts like EPF, PPF, and NPS for tax benefits and long-term growth. Additionally, invest in a diversified portfolio of equity mutual funds, balanced funds, and debt instruments to balance risk and returns. Regularly review and adjust your investments based on changing market conditions and your risk tolerance. Consulting with a Certified Financial Planner can help tailor a plan specific to your needs and goals.
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

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

Asked by Anonymous - Apr 11, 2024Hindi
Listen
Money
Dear sir At the age of retirement of 60 years What will be the correct investment for Monthly income
Ans: As you approach retirement at 60, securing a reliable source of monthly income becomes a top priority. Here are some investment options to consider for generating monthly income:

Annuities: Annuities are insurance products that provide regular income payments in exchange for a lump sum investment. They offer guaranteed income for life or a specified period, providing financial security during retirement.
Senior Citizen Savings Scheme (SCSS): SCSS is a government-backed savings scheme designed for individuals aged 60 and above. It offers fixed interest rates and quarterly payouts, making it a popular choice for retirees seeking regular income.
Post Office Monthly Income Scheme (POMIS): POMIS is another government-backed savings scheme that provides monthly interest payments. It offers a fixed interest rate and serves as a reliable source of monthly income for retirees.
Systematic Withdrawal Plans (SWP): SWP allows you to withdraw a fixed amount from your mutual fund investments at regular intervals. It provides flexibility and the potential for capital appreciation while generating monthly income.
Dividend-Paying Stocks: Investing in dividend-paying stocks can provide regular income through dividend payments. However, it's essential to research and select stable companies with a history of consistent dividend payments.
Rental Income from Real Estate: If you own rental properties, you can generate monthly income through rental payments. However, managing rental properties requires time and effort, so consider this option carefully.
Before making any investment decisions, assess your financial goals, risk tolerance, and income needs. Consult with a Certified Financial Planner to develop a personalized retirement income strategy that aligns with your objectives and provides financial security during retirement.

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2024

Money
Sir, my salary saving is Rs 5000 per month. My age is 34 years. Where should I invest to get an amount of 50 lakh at age of 60 years.
Ans: You aim to accumulate Rs 50 lakh by the time you turn 60. With a current age of 34, you have a 26-year investment horizon. Saving Rs 5000 per month is a commendable start towards achieving this goal.

A long investment horizon allows you to take advantage of compounding returns, and a disciplined savings approach sets a solid foundation for your financial future.

The Role of Equity Investments

Equity investments are critical for long-term wealth creation. They typically offer higher returns compared to fixed-income securities, especially over long periods. The volatility in equity markets can be a concern, but with a 26-year horizon, you can ride out market fluctuations and benefit from overall market growth.

Equity mutual funds are a suitable vehicle for your needs. They pool money from various investors to invest in a diversified portfolio of stocks, managed by professional fund managers.

Diversifying Your Portfolio

Diversification is key to managing risk in your investment portfolio. By spreading your investments across various asset classes and sectors, you can reduce the impact of poor performance in any single area.

Large-Cap Funds: These funds invest in well-established companies with a large market capitalization. They offer stability and steady returns, making them a reliable foundation for your portfolio.

Mid-Cap and Small-Cap Funds: These funds focus on companies with medium to small market capitalization. While they come with higher risk, they also offer higher growth potential. Including these funds can boost your portfolio's overall returns.

Multi-Cap and Flexi-Cap Funds: These funds invest across various market capitalizations, providing flexibility to the fund manager to capitalize on market opportunities. This approach allows the portfolio to adapt to changing market conditions, potentially offering better risk-adjusted returns.

Benefits of Actively Managed Funds

Actively managed funds are managed by professional fund managers who actively select and manage the portfolio with the goal of outperforming the market index. These managers use research, market analysis, and their expertise to make investment decisions.

Advantages Over Index Funds: Index funds passively track a market index and aim to match its performance. They lack the flexibility to adapt to changing market conditions or capitalize on specific investment opportunities. Actively managed funds, on the other hand, can potentially deliver higher returns due to the fund manager's expertise and strategic decisions.

Importance of Professional Management: Professional management in actively managed funds helps in navigating market volatility and making informed investment choices. This guidance can be crucial for maximizing your returns over the long term.

Systematic Investment Plan (SIP)

Investing through a SIP is an excellent strategy for consistent investing. It allows you to invest a fixed amount regularly, regardless of market conditions. SIPs help in averaging the purchase cost, known as rupee cost averaging, and reduce the impact of market volatility over time.

Consistency and Discipline: SIPs instill a habit of regular investing, which is essential for long-term wealth creation. By investing Rs 5000 per month, you ensure a disciplined approach to building your corpus.

The Power of Compounding

Compounding is the process where the returns on your investments generate additional returns. Over time, this leads to exponential growth of your investment corpus. Starting early and investing consistently maximizes the benefits of compounding, significantly increasing your chances of reaching your financial goal.

Long-Term Impact: With a 26-year investment horizon, the power of compounding can turn your regular savings into a substantial corpus. The longer your money remains invested, the greater the compounding effect, making time your greatest ally in wealth creation.

Regular Reviews and Adjustments

Regularly reviewing your portfolio ensures it remains aligned with your financial goals and risk tolerance. Market conditions and personal financial situations change, necessitating adjustments in your investment strategy.

Rebalancing: Periodically rebalancing your portfolio involves realigning the weightings of your assets to maintain your desired risk level. This might mean selling high-performing assets and buying underperforming ones to keep your portfolio balanced.

Consulting a CFP: A Certified Financial Planner (CFP) can provide valuable insights and professional advice. They can help you navigate market changes, adjust your strategy as needed, and ensure you stay on track to achieve your financial goals.

Benefits of Investing Through a CFP

Investing through a Mutual Fund Distributor (MFD) with a CFP credential offers several benefits. CFPs provide personalized financial planning and advice, helping you select the most suitable funds and investment strategies.

Professional Guidance: A CFP's expertise ensures that your investment choices are well-informed and aligned with your long-term objectives. This guidance can be crucial for optimizing your investment returns and managing risks effectively.

Regular Monitoring: A CFP can help you with regular portfolio reviews and rebalancing, ensuring your investments continue to meet your financial goals despite changing market conditions.

The Importance of Patience and Discipline

Long-term investing requires patience and discipline. Avoid reacting to short-term market fluctuations, which can lead to impulsive decisions and potential losses. Staying committed to your investment plan and maintaining a long-term perspective are key to achieving your financial objectives.

Avoiding Market Noise: Market volatility is inevitable, but maintaining a disciplined approach helps you stay focused on your long-term goals. Regular investing through SIPs and periodic portfolio reviews with a CFP can keep you on the right track.

Long-Term Commitment: Understanding that wealth creation takes time and persistence is crucial. By remaining patient and disciplined, you increase your chances of achieving your financial goal of Rs 50 lakh by age 60.

Conclusion

Your goal of accumulating Rs 50 lakh by the time you turn 60 is achievable with a disciplined investment approach. Equity mutual funds, diversified across large-cap, mid-cap, small-cap, and multi-cap categories, can provide the growth needed to reach this target.

Starting a SIP of Rs 5000 per month in these funds and leveraging the power of compounding will significantly enhance your wealth creation journey. Regular portfolio reviews and adjustments, guided by a Certified Financial Planner, will ensure your investments stay aligned with your goals.

By staying committed, patient, and disciplined, you can successfully build a substantial corpus for your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 03, 2024Hindi
Listen
Money
Sir. I am 45 currently with gross income of Rs 2.5 lakhs and take home.salary of rs 1.70 lakhs. I want to retire at 60 with monthly income of rs 2.5 lakhs. Kindly advice how much and where to invest to achieve my goals
Ans: Evaluating Your Retirement Goal
Your goal to retire at 60 with a monthly income of Rs 2.5 lakhs is ambitious and achievable with proper planning. Let's break down the steps to achieve this goal.

Current Financial Position
Gross Income: Rs 2.5 lakhs per month.

Take Home Salary: Rs 1.70 lakhs per month.

You have 15 years until retirement. Time is your biggest asset in building a substantial retirement corpus.

Estimating Retirement Corpus
Desired Monthly Income Post-Retirement: Rs 2.5 lakhs.

Annual Requirement: Rs 2.5 lakhs * 12 = Rs 30 lakhs.

Inflation Adjustment: Assuming an average inflation rate of 6%, the future value of Rs 30 lakhs in 15 years would be approximately Rs 72 lakhs annually.

Retirement Corpus Calculation: To generate Rs 72 lakhs annually, assuming a safe withdrawal rate of 4%, you will need a corpus of approximately Rs 18 crores.

Investment Strategy
1. Determine Monthly Savings:

Based on your current income and expenses, determine how much you can save and invest each month. Ideally, aim to save and invest at least 30-40% of your take-home salary.

2. Diversified Portfolio:

Invest in a diversified portfolio of mutual funds, stocks, and fixed income instruments. This balances risk and growth.

Investment Options and Allocation
Equity Mutual Funds:

Growth Potential: High returns over the long term.
Risk: High volatility, but suitable for a 15-year horizon.
Allocation: Allocate around 60-70% of your savings here.
Debt Mutual Funds:

Stability: Lower risk and stable returns.
Purpose: Balances the portfolio and provides safety.
Allocation: Allocate around 20-30% here.
Public Provident Fund (PPF):

Safety: Government-backed and risk-free.
Tax Benefits: Offers tax-free returns.
Allocation: Consider contributing up to the maximum limit.
Systematic Investment Plan (SIP):

Regular Investment: Invest a fixed amount monthly in mutual funds.
Rupee Cost Averaging: Reduces the impact of market volatility.
Calculating Monthly Investment
Future Value Calculation:

To reach Rs 18 crores in 15 years, calculate the monthly investment required. Assuming an average annual return of 12% from your investments:
FV = Future Value (Rs 18 crores)
PV = Present Value (monthly investment)
r = monthly return (1% for 12% annual)
n = number of months (180 months for 15 years)
Using financial formulas or a retirement calculator can provide precise figures. However, a rough estimate suggests investing approximately Rs 1 lakh per month.

Steps to Implement the Plan
1. Automate Savings:

Set up automatic transfers to your investment accounts. This ensures disciplined saving and investing.

2. Regular Review:

Review and adjust your investment portfolio annually. Ensure it aligns with your goals and risk tolerance.

3. Emergency Fund:

Maintain an emergency fund covering at least 6-12 months of expenses. This ensures you don't dip into your retirement savings for emergencies.

4. Health Insurance:

Ensure adequate health insurance coverage. Medical expenses can be a significant burden in retirement.

Benefits of Investing through MFD
Professional Guidance:

Certified financial planners and MFDs provide expert advice on fund selection and investment strategies.

Regular Monitoring:

MFDs regularly monitor and review your portfolio, ensuring it remains aligned with your goals.

Tax Efficiency:

Professionals help in structuring your investments to maximize tax benefits.

Conclusion
With a disciplined investment strategy and regular review, achieving your retirement goal is feasible.

Invest in a diversified portfolio, automate savings, and consult with a certified financial planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
Listen
Career
Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

...Read more

Pradeep

Pradeep Pramanik  |186 Answers  |Ask -

Career And Placement Consultant - Answered on Nov 21, 2024

Listen
Career
I am looking for a job, I had uploaded my resume in job site. A consultant called me & introduced himself telling he know some of the openings. He had a detailed discussion about my job & my skills. He told need to register to his consultancy for scheduling interview. I registered with him & he got me a interview. Interview was done by the company through skype. I could not see the company persons. They told only they can see me. Interview went on well & regarding salary I told my expectation but they told it is not possible & they told their proposal. Finally I agreed to them. They gave me code & told to visit the company for next round. Consultant called me after first round & told recruiter is very happy with the interview. Regarding salary he told why I agreed for the proposal,he will discuss again & asked to pay charges for some of his services which he will refund the day I visit to the company & take the orders. I paid him. He told there is a increase in salary he has discussed with recruiter & again asked for the money I did only partial payment & further will not pay anything. Second round also happened through skype instead of in person. Interview went on well & salary offered was good comparing to before & there was a big jump. Recruiter told they have planned to give additional responsibilities so they have increased. Finally they gave me a date to visit company. I asked when will I get the order, he replied he will send to consultant as I was taken by them. Till now i did not get the orders, consultant is keep on postponing. Now he told visit to company date is also postponed, he will update in next week & not to worry as job is confirmed. Now not understanding what to do, am I been cheated or wait.
Ans: Dear Mr. Keshava ,

There are many unscruplous job agents who are fake and claim themselves to be a Placement consultant. In short You have been cheated . Before paying any fee for registration , you must ensure that the agency is genuine . If not don't even upload your resume . You may write to company , lodge a complaint against the agency. If the amount is very high , pl. take the help of police . .

...Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Listen
Money
I hv started sip in 2008 and still continued , now the monthly sip is 55k and total value is 1.85cr. Need to accumulate 7cr with in next 4 yrs pls guide how can i achieve. - Deepak J. Hajari
Ans: Deepak, your long-term SIP discipline is impressive. Accumulating Rs. 7 crore in 4 years is ambitious. Achieving this goal requires a strategic approach, as time is limited. Let's create an actionable plan for your success.

Current Financial Snapshot
Ongoing SIPs: Rs. 55,000 monthly.
Current Portfolio Value: Rs. 1.85 crore.
Target Corpus: Rs. 7 crore within 4 years.
Your consistent investing habits have built a solid foundation. However, to achieve your target, adjustments are needed.

Key Challenges
Short Time Frame: Four years is a limited period for aggressive wealth accumulation.
Significant Gap: A gap of Rs. 5.15 crore remains to meet the Rs. 7 crore goal.
Market Volatility: Equity investments might face short-term volatility.
Recommendations to Bridge the Gap
1. Increase Your SIP Contributions
Raise your SIP amount to Rs. 1.25 lakh per month.
This increase ensures faster wealth creation through compounding.
Prioritise high-growth funds in equity-oriented categories.
2. Invest Lump Sum Amounts
Consider deploying a lump sum if you have idle savings or low-yield investments.
Invest in aggressive equity mutual funds for higher potential returns.
Break down the lump sum into tranches for better market timing.
3. Diversify into High-Growth Mutual Funds
Focus on small-cap and mid-cap mutual funds for higher growth potential.
Maintain a balance with some large-cap exposure for stability.
Ensure the portfolio aligns with your high-return requirements.
4. Avoid Overexposure to Debt or Low-Yield Instruments
Limit debt investments during this aggressive growth phase.
Avoid instruments like FDs or debt mutual funds with lower returns.
Rely on equity for the next four years to maximise growth.
5. Rebalance Your Portfolio Regularly
Conduct a portfolio review every 6 months.
Reallocate funds based on underperforming or outperforming sectors.
Keep your portfolio aligned with market trends and your goals.
6. Capitalize on Bonus or Windfall Gains
Direct any bonuses, salary hikes, or windfall gains towards your target.
Avoid unnecessary expenses during this focused phase.
Tax Efficiency Matters
Equity Mutual Funds Taxation: Gains above Rs. 1.25 lakh are taxed at 12.5%.
Debt Mutual Funds Taxation: Taxed as per your income slab.
Plan redemptions strategically to minimise tax liabilities.
Leverage Market Opportunities
Benefit from Market Corrections: Use corrections as opportunities to invest lump sums.
Stay Invested for Compounding: Avoid early redemptions to let compounding work fully.
Role of Regular Monitoring
Track Performance: Ensure funds are performing as per expectations.
Switch Funds if Needed: Shift from underperforming funds to high-growth options.
Final Insights
Deepak, achieving Rs. 7 crore in 4 years requires aggressive yet calculated strategies. Increase your SIPs, deploy lump sums, and focus on high-growth funds. Regular monitoring and disciplined investing are key to your success. Stay patient and consistent.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x