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What long-term investments should I start for my soon-to-be 18-year-old son who's starting a BTech program?

Anil

Anil Rego  |377 Answers  |Ask -

Financial Planner - Answered on Jul 24, 2024

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Manmohan Question by Manmohan on Jul 24, 2024Hindi
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Hi sir, my son will be going to complete 18 yrs soon. What all investment for long term advantage should I start for him. Currently he will be studying BTech for next four years. Thanks.

Ans: Hello Manmohan,
We are assuming that you are also relatively younger in your age. Since, you have time, you can go for aggressive portfolio strategy with a higher allocation to Small & Midcap funds with a decent largecap funds exposure. Please be advised to do this in a SIP mode to take advantage of rupee cost averaging
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons
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

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Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Sir, my son is now 27 years old and would like to invest approx Rs. 10,000- 12,000 per month for the next 15-20 years and an approximate increase of 10-15% per year. Kindly suggest which type of investment should be planned in addition to any other suggestion's which would create a substantial monthly income after 20 years taking into consideration the money value and inflation
Ans: That's a fantastic plan for your son. Starting investments early creates a solid financial future. Let's explore some options to build a good monthly income after 20 years:

Building a Strong Investment Portfolio:

Diversification is key: Invest in a mix of asset classes like Equity (stocks), Debt (bonds), and Hybrid (mix of equity and debt) to manage risk and target long-term growth.
Consider Equity Mutual Funds: Actively managed Equity Mutual Funds can potentially generate good returns over the long term. They are professionally managed by experts.
Investing for Growth and Beating Inflation:

Systematic Investment Plan (SIP): Regular monthly investments (SIP) of Rs. 10,000-12,000 with a planned 10-15% annual increase is a smart approach. It inculcates discipline and leverages rupee-cost averaging.
Long-term horizon: A 20-year investment timeframe allows for market fluctuations to even out, focusing on long-term growth that outpaces inflation.
Planning for Future Income:

Goal-based investing: While aiming for monthly income, consider your son's future goals like retirement or higher studies. Tailor the investment mix accordingly.
Review and Rebalance: Regularly review the portfolio performance and rebalance allocations if needed to maintain the desired asset class mix.
Getting Professional Advice:

Talk to a CFP professional: A Certified Financial Planner can create a personalized investment plan for your son, considering his risk tolerance and financial goals.
Investment planning is crucial: A CFP can help navigate different investment options and choose the ones that best suit your son's needs.
Remember: Consistent investing, diversification, and professional guidance are key to building a strong financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

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..Read more

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Ramalingam Kalirajan  |7026 Answers  |Ask -

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

Asked by Anonymous - May 08, 2024Hindi
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Im 47 yrs old. I want to invest for my 9 yrs old son's higher education. Which of the plans should i consider.
Ans: Investing for your child's future education is a commendable goal that requires careful planning and consideration. As a Certified Financial Planner, I understand the importance of selecting the right investment plan tailored to your specific needs and goals. Let's explore some options:

Analyzing Investment Options
When it comes to investing for your son's education, there are several avenues you can consider, each with its own set of advantages and considerations. It's crucial to evaluate these options carefully before making a decision.

Equity Mutual Funds
Equity mutual funds offer the potential for high returns over the long term, making them an attractive option for education planning. However, they also come with a higher level of risk due to market fluctuations.

Debt Mutual Funds
Debt mutual funds provide stability and steady returns, making them suitable for conservative investors. They can be a reliable option for preserving capital and generating income for your child's education.

Systematic Investment Plans (SIPs)
SIPs allow you to invest regularly in mutual funds, helping you build wealth gradually over time. They offer the benefit of rupee cost averaging and can be an effective strategy for achieving long-term financial goals.

Evaluating the Best Approach
As a Certified Financial Planner, I recommend a diversified approach to investing for your son's education. By spreading your investments across different asset classes, you can mitigate risk and enhance returns over the long term.

Conclusion
Investing for your child's education requires careful planning and consideration of various factors. As a Certified Financial Planner, I can help you navigate the complexities of investment options and create a tailored strategy that aligns with your goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Asked by Anonymous - May 20, 2024Hindi
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My son is of 23 years old having bank balance of 13 lakh which he generated from you tube What will be best investment for him for future
Ans: Firstly, congratulations to your son for building a bank balance of ?13 lakhs from his YouTube channel at such a young age. This achievement shows his dedication, creativity, and hard work. Now, it's essential to invest this money wisely to secure his financial future. Let's explore the best investment strategies for him.

Understanding His Financial Goals
At 23 years old, your son likely has different financial goals compared to someone older. His goals might include:

Building an emergency fund
Saving for higher education or career development
Long-term wealth accumulation
Future big purchases like a car or travel
Planning for retirement
Understanding these goals will help in creating a tailored investment strategy.

Building an Emergency Fund
An emergency fund is crucial for financial security. It provides a safety net for unexpected expenses or income disruptions. Your son should set aside at least 6 months' worth of living expenses in a safe, easily accessible account, like a high-interest savings account or liquid mutual fund.

Investing in Mutual Funds
Benefits of Actively Managed Funds
Actively managed mutual funds are managed by professional fund managers who aim to outperform the market. They research and select securities to achieve better returns. While they have higher fees than index funds, the potential for superior performance can justify the cost.

Diversification Through Hybrid Funds
Hybrid funds offer a mix of equity and debt investments. They provide the growth potential of equities and the stability of debt instruments. This balance can be ideal for a young investor looking to grow wealth with moderate risk.

Equity Mutual Funds for Growth
Equity mutual funds invest in stocks and are suitable for long-term growth. Given your son's young age, he can afford to take higher risks for potentially higher returns. Large-cap funds, multi-cap funds, and sectoral funds can be considered for a diversified equity exposure.

Disadvantages of Index Funds
Index funds merely replicate a market index and don't aim to outperform it. They can be too passive for a young, ambitious investor seeking high returns. Actively managed funds, on the other hand, adapt to market conditions and seek opportunities for higher gains.

Avoiding Direct Funds
Direct funds have lower expense ratios but require self-management. Without professional guidance, your son might miss critical market insights and strategic adjustments. Investing through a Certified Financial Planner (CFP) ensures professional management, regular reviews, and strategic planning.

Considering Systematic Investment Plans (SIPs)
SIPs allow investing a fixed amount regularly in mutual funds. This approach can be beneficial as it:

Promotes disciplined investing
Reduces the impact of market volatility
Helps in rupee cost averaging
Starting SIPs in a mix of equity and hybrid funds can be an effective way for your son to grow his wealth steadily.

Long-Term Wealth Accumulation
Compounding Benefits
Investing early leverages the power of compounding. The longer the investment period, the greater the compounding effect. Starting now, your son's investments can grow significantly by the time he reaches major financial milestones.

Diversifying Investments
Diversification reduces risk by spreading investments across various asset classes. Besides mutual funds, consider a small allocation in gold funds or international funds for further diversification. These can hedge against market volatility and currency risks.

Education and Career Development Fund
Your son might consider pursuing higher education or professional certifications to advance his career. Setting aside a portion of his investments in a dedicated education fund can ensure he has the resources when needed.

Future Big Purchases
If your son plans big purchases like a car or travel, short-term debt funds or fixed deposits can be suitable. They offer safety and liquidity while providing better returns than a regular savings account.

Retirement Planning
It might seem early, but starting retirement planning now can yield tremendous benefits. Investing in equity mutual funds through SIPs can build a substantial corpus over time. This early start will ensure financial independence in his later years.

Conclusion
Your son's financial journey has started strong with his earnings from YouTube. By investing wisely in mutual funds, building an emergency fund, and diversifying his portfolio, he can secure a prosperous future. Regular investments through SIPs, professional guidance from a CFP, and a focus on long-term goals will help him achieve financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Shyam

Dr Shyam Jamalabad  |78 Answers  |Ask -

Dentist - Answered on Nov 14, 2024

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Dr. Shyam, I had my teeth cleaned 6 months ago and after that was done I saw discoloration on certain teeth that wasn't there before. Years ago I had my teeth cleaned and one particular tooth after the cleaning was sensitive to touch. I had a crown put in from two different dental offices. The first one did the crown right, but was trying to charge me $3,500 more than the agreement they made with Medicare. Medicare corrected that. I other dentist did a crown and it didn't go all the way up to my gums and is sensitive to especially cold things. I'm not having very good experiences with dentist by and large. Can't find an honest one or one that can actually do the job right. I feel being on Medicare your a target to bring in money. Not sure what to do next. Supposed to go back and have them redo the crown that didn't go to my gums, but it also was ttd place to didn't clean my teeth right and discolored some of them. Any suggestions on how to trust there is actually an capable and honest dentist out there who can perform properly?
Ans: Identifying a capable and honest dentist is crucial for your oral health and well-being. Here are some tips to help you find one:

1. Ask for referrals: Ask friends, family, or coworkers for recommendations. They can provide valuable insights into a dentist's work quality and bedside manner.

2. Check credentials: Ensure the dentist has the necessary qualifications, certifications, and licenses. You can verify this information with your state's dental board or professional organizations like the American Dental Association (ADA).

3. Check online reviews: Look up the dentist on review platforms. Pay attention to the overall rating and read the comments to understand the strengths and weaknesses. At the same time, do not rely on reviews alone as these can be manipulated, fake reviews can be easily generated.

4. Evaluate their communication style: A good dentist should listen to your concerns, explain procedures clearly, and answer questions patiently. Ensure you feel comfortable asking questions and discussing your treatment.

5. Assess their facility and equipment: A well-organized and modern dental office with up-to-date equipment is a good sign.

6. Check their approach to preventive care: A capable dentist emphasizes preventive care, including regular cleanings, exams, and education on oral hygiene.

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Dating, Relationships Expert - Answered on Nov 14, 2024

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
Ans: Dear Anonymous,
Whatever you are feeling, it is very normal. More people than you could imagine go through this same phase. But as you mentioned, these are just thoughts; there is no truth to them. Not having a relationship does not make you uncool. It merely means that you did not meet your perfect match yet. I understand that you feel like you have missed out on something and that feeling is valid. It might not be reasonable, but it's very natural to think this way. I can suggest one thing- why don't you try a dating or matchmaking app to find your own partner? That way, you will be keeping your parents' wishes and won't let yourself down either. It will also give you more control over choosing your life partner.

Hope this helps.

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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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