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Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 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
Saumik Question by Saumik on Apr 07, 2024Hindi
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I am a Government Employee. My age is 32 and I invest in several Mutual Funds . All of which are Small cap & Mid cap. As I am very aggressive investor , my investment horizon is 20 years . My investment are in following funds. 1.Axis Small cap fund - 3000 2. Axis Mid cap fund - 2000 3. HDFC Midcap opportunities fund -3000 4. Canara Robacco Small cap fund- 2000 5. Parag Parikh Flexicap Fund -2000 6. Motilal Oswal Midcap fund - 2000 7. Nippon India Small cap fund - 4000 With the increase salary I will also increase the amount of SIP Please suggest me any further changes of the above said portfolio to create a corpus of 10 Cr.+ .

Ans: Given your aggressive investment approach and long-term horizon, your portfolio seems well-aligned with your risk appetite and goals. However, there are a few considerations to keep in mind:

Diversification: While small and mid-cap funds have the potential for high growth, they also come with increased volatility. Consider diversifying your portfolio by adding exposure to large-cap or multi-cap funds to balance risk.
Fund Selection: Review the performance and consistency of your existing funds regularly. Ensure they continue to meet your investment objectives and are managed by reputable fund houses with a proven track record.
Regular Monitoring: Stay informed about market trends, economic developments, and fund performance. Periodically review your portfolio and make adjustments as needed to optimize returns and manage risk effectively.
Increase SIP Amounts: As your income increases, consider gradually increasing the SIP amounts in your existing funds or adding new funds to accelerate wealth accumulation. However, ensure you maintain a disciplined approach and avoid overextending yourself financially.
Consider Professional Advice: Consulting with a Certified Financial Planner can provide personalized guidance and help fine-tune your investment strategy based on your specific goals, risk tolerance, and financial situation.
With disciplined investing, regular monitoring, and a well-diversified portfolio, you can work towards achieving your goal of building a corpus of 10 Cr.+ over the next 20 years.
Asked on - May 08, 2024 | Answered on May 08, 2024
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Thank you sir for your valuable suggestions.
Ans: Welcome :)
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  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Asked by Anonymous - Jan 02, 2024Hindi
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Hi sir I'm 47 yrs old have 2 kids. for their education and marriage i started investing in mutual fund since 2018.My portfolio is as follows &all are direct fund.1,CANARA ROBECCO SMALLCAP FUND 3000/MONTH 2,EDELWEISS MIDCAP FUND 2500/Month 3MIRAE ASSET LARGE CAP 2500/MONTH 4PGIM FLEXI CAP FUND 2000/MONTH 5PPFAS FLEXI CAP FUND 4000/MONTH 6QUANT ACTIVE FUND 2500/MONTH 7SBI SMALLCAP FUND 3000/MONTH 8SBI MAGNUM MIDCAP FUND 2500/MONTH 9SBI CONTRA FUND 2500/MONTH 10SBI TECHNOLOGY FUND 2000/MONTH 11KOTAK EMERGING EQUITY FUND 3000/MONTH 12HDFC MIDCAP OPPORTUNITY FUND 2500/MONTH SIR my question is that is my portfolio needed any changes? & how much corpus can I accumulate in last 13 years as i will retire at 60. Please reply & thanks in advance. 7 7 SBI SMALL CAP FUND 3000/MONTH
Ans: Your portfolio consists of a diverse mix of mutual funds across various market segments, including small-cap, mid-cap, large-cap, and flexi-cap funds. However, having such a large number of funds may lead to over-diversification and increase the complexity of managing your portfolio.

Consider consolidating your portfolio by focusing on high-quality funds that align with your investment objectives and risk tolerance. Review the performance of each fund relative to its benchmark and peers. If any fund consistently underperforms or deviates significantly from its investment objective, you may consider replacing it with a better-performing alternative.

As for the corpus accumulation, it would depend on various factors such as the performance of the funds, the consistency of your contributions, and market conditions. You may use online SIP calculators to estimate the potential corpus based on your ongoing SIP contributions and expected returns.

Given your retirement goal at age 60, ensure that your investment strategy is aligned with your long-term financial objectives and risk profile. Consider consulting with a financial advisor for personalized guidance tailored to your specific circumstances.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 27, 2024

Asked by Anonymous - Nov 27, 2024Hindi
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Money
Hi, sir I am a an 30 year old (single) engineer working with a MNC in Chennai, unfortunately till this day i haven't had any savings at all for my future (retirement, other short term or long term goals). Currently my take home salary after EPF and parental insurance is 53k ( EPF is about 4900/month - employee+employer) i haven't opted for Corporate NPS but is provided by the company without any additional contribution from company. I have company health insurance policy and have planned to take my own health insurance and term insurance plan. Adding to above I have zero emergency fund with me. How should I proceed with my investments?
Ans: You have taken the first step by recognising the need to plan. It’s essential to appreciate your intention to secure your financial future. Let’s look at how you can proceed to achieve your short-term and long-term goals.

Your current take-home salary is Rs 53,000, and your EPF contribution is Rs 4,900. However, you lack savings, investments, and an emergency fund. Here's a step-by-step strategy:

Build an Emergency Fund
Set aside funds to cover at least six months' expenses.

Start by saving 10-15% of your salary monthly into a high-interest savings account.

Use Recurring Deposits or Liquid Mutual Funds to maintain this fund for emergencies.

Secure Yourself with Insurance
Health insurance: Maintain your company health policy but add a personal health policy. Choose a policy offering a sum insured of Rs 10-15 lakh.

Term insurance: Buy a term plan covering 10-15 times your annual income. Keep the policy simple and avoid investment-linked insurance.

Budget Your Income
Allocate your income carefully for expenses, savings, and investments.

Use the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and investments.

Avoid unnecessary expenses to increase your saving capacity.

Start Investing Gradually
Short-term goals (1-5 years): Invest in debt funds or recurring deposits. Debt mutual funds are good for stable returns.

Long-term goals (5+ years): Invest in equity mutual funds for higher returns. Choose actively managed funds with consistent performance.

Avoid index funds. Actively managed funds have a better potential for higher returns through professional fund management.

Retirement Planning
Utilise the EPF for retirement. Your current contribution will grow over time with compounding.

Consider investing in diversified equity mutual funds for additional retirement savings.

Corporate NPS: You can explore NPS for its tax-saving benefits. However, don’t rely solely on it for retirement.

Tax-Saving Investments
Use Section 80C to save taxes up to Rs 1.5 lakh.

EPF, PPF, ELSS mutual funds, and life insurance premiums can qualify under this section.

Opt for ELSS funds for tax saving and wealth creation.

Review Existing Expenses
Evaluate and minimise unnecessary expenditures.

Avoid loans for discretionary spending like vacations or gadgets.

Advantages of Using a Certified Financial Planner
A CFP can help you plan holistically and ensure you stick to your goals.

They provide tailored strategies, ensuring proper fund allocation and monitoring.

Invest through a Mutual Fund Distributor with CFP credentials to access professional advice.

Key Steps for Discipline
Automate investments through SIPs in mutual funds.

Track your monthly budget and investment progress regularly.

Avoid direct funds. Regular funds offer professional guidance and fund distributor support.

Tax Implications
For equity mutual funds, LTCG above Rs 1.25 lakh attracts 12.5% tax.

STCG on equity funds is taxed at 20%.

Debt fund gains are taxed as per your income slab. Consider these while investing.

Final Insights
You are in the right direction by seeking advice now. Build a solid foundation with savings, insurance, and investments. Take small steps toward financial independence.

Remain consistent with your investments, and review your financial plan annually.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Mayank

Mayank Chandel  |1940 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Nov 27, 2024

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Hello, i really have a serious issue regarding my studies as i am 24 yrs now and gave NEET 4times and i am still preparing for nxt year 2025 but at the back of my mind i am really tensed what if the same thing repeats in the neet 2025 also like paper leak and all, So now i am confused that should i take a full drop or partial drop. The mental pressure is really hitting hard and also its almost been 4years that i am still 12th pass only and my classmates have already completed their college and some are flight attendant and earning well, So this all things just hits so hard and also the hope in parents eyes as my father is already proud that i studied science so i would definitely become doctor. I wasted a lot of money in pg and coaching (fastrack) and this all things are hitting so hard that i really feel sad and have no ways to go.
Ans: Hi Bhima
I must say you have got perseverance & I appreciate your parent's trust in you. You have already appeared multiple times and you are going to appear again in 2025. By the time you will be 25 years old. They say there is no age to learn. But after getting admission you need another 10 years to practice as a qualified specialist. Make sure you take admission in the next session.

If higher cutoff & high fees of private colleges are an issue for you, then try exploring the MBBS abroad option, I can help with that too. Since NEXT is compulsory for Indian & Foreign graduates too it won't make a difference if you study in India or Abroad.

For time forget all the societal pressure and give your 100% and make your parents proud.

...Read more

Ravi

Ravi Mittal  |439 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 27, 2024

Asked by Anonymous - Nov 26, 2024Hindi
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Relationship
Hi Ravi sir, I am 24 yrs old girl, currently pursuing MBA from a middle class family. I have a 5 yr relationship with my boyfriend. I love him very much. Don't want to loose him. Maybe he also love me. But the problem start few days ago when he suddenly confessed me that he visit red light area thrice at the first year of our relationship. From those initial days we are in a serious relationship and family involved in this. But we don't intimate but virtual intimacy was there. But this year in january we for first time got intimate and after 4 time of intimacy he confess me this that he physical one time and two time just visit their to see naked dance but failed due to some reason. Now He told me that he felt it will be cheating if he not told me this now. One side I am depressed and fear to loose him. He repetitively beg pardon from me and told that this was his peer pressure and now he mature enough to say no this.. Now he can't imagine his life without me. I don't want to loose him but can't forgive or forgot this. Now he repeatedly told me to marry him and proposed me romantically. He repeatedly want pardon from me . I love him very much that I want to forget all things and start from first again. But will it be right, if I easily forgive him than is he got much confidence to do this again?? I am depressed and confused. Pls help me . What will be right decision in this situation? Forgive him or not?
Ans: Dear Anonymous,
I understand how conflicted you must be feeling right now, and I am sorry that you are going through this. I wish I could tell you what would be the right thing to do, but it has to be your decision and yours alone. All I can suggest is to take a beat and not rush into deciding anything.

Take everything into consideration-
On the one hand, infidelity is indeed unacceptable in a relationship. But on the other, it was in the initial stage. He might not have been as serious about the relationship as you during those days. Nevertheless, the timing does not make his action justifiable. I suggest you have an open conversation and ask him why he felt the need to do this. Ask him if he did not consider your feelings. What's concerning is that he did not stop after the first time; he went back twice more. I am not judging his choice of location but the fact that he was in a committed relationship puts him in the wrong. Also, blaming it on peer pressure is inexcusable; this isn't something funny or trivial he did because his friends dared him to. Ask him to take accountability and understand that actions have consequences.

Take it one day at a time. Whatever you decide is okay. And if at any point you want to pick yourself over the relationship, I want you to understand that it is completely alright. You will feel like it's a selfish decision, but it isn't. Remember that. Please do what you need to help you heal from this.

Best Wishes.

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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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