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Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 22, 2023

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
Dillip Question by Dillip on Apr 07, 2023Hindi
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Hallo Sir, I am 44 years old a salary person and invest in MF last 4 years and NPS in last 2 years and getting good return. last 6 months I am starting invest in shares market but loosing money in regular basis. Please suggest

Ans: Investing in direct shares needs time and expertise. Either you need to learn a lot and slowly build a direct stock portfolio or focus only on mutual funds.

Mutual funds can give inflation-beating returns to meet your financial 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.
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Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 11, 2024Hindi
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Hi sir I am 58 years old. I never invested any stock market or shares or any such market funds I was working in gulf country. Earned around 8cr . Now all in fixed deposits. I was busy during my job time. I was only concentrate my jobs .now I want advice how to invest on My atleast half amount MF smilar funds. I also invested realestate around 25 years back. Now all got good appreciation. I have 2daughter and one son.daughters are earning good salary. Son studying.no loan or no commitment . Please advice how I can invest on MF stock linked market so I can make enough better growth than fixed deposits
Ans: It's commendable that you're considering diversifying your investments beyond fixed deposits, especially given the potential for higher returns in the stock market. Let's explore how you can begin investing in mutual funds (MF) and similar funds with a portion of your wealth.

Since you're new to the stock market and MFs, it's wise to start with a conservative approach. Consider investing a portion of your fixed deposits into balanced funds or equity-oriented hybrid funds. These funds offer a mix of equity and debt instruments, providing growth potential while mitigating risk.

Given your substantial corpus, you have the flexibility to invest in a diversified portfolio of mutual funds across different categories. Allocate funds based on your risk tolerance, financial goals, and investment horizon.

For long-term wealth creation, equity mutual funds, particularly large-cap and multi-cap funds, can be suitable. These funds invest in well-established companies with strong growth potential, offering the possibility of higher returns over time.

Consider investing systematically through Systematic Investment Plans (SIPs), which allow you to invest a fixed amount regularly. SIPs help in rupee-cost averaging and reduce the impact of market volatility on your investments.

Since you have no immediate financial commitments and your children are financially independent, you can afford to take a long-term view with your investments. Focus on staying invested for the long haul to benefit from the power of compounding.

However, it's crucial to consult with a Certified Financial Planner who can assess your financial situation, risk appetite, and investment objectives. They can help you devise a personalized investment strategy and guide you through the process of investing in mutual funds.

In conclusion, by diversifying a portion of your wealth into mutual funds, you can potentially achieve higher growth than fixed deposits over the long term. With careful planning and professional guidance, you can navigate the complexities of the stock market and work towards your financial goals.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |7968 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

Asked by Anonymous - Jul 17, 2024Hindi
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Sir i am 32 year old my salary is 33000. Kindly provide the advice of which mutual funds and shares need to invest. Already i am investing monthly 500 in PPF and NPS, 500 in mutual fund, 500 in RD. From last two years
Ans: It's great to see that you're already investing in PPF, NPS, mutual funds, and RD. Let’s review your financial situation and provide some tailored advice.

Current Financial Overview
Age: 32 years old.

Salary: Rs. 33,000 per month.

Current Investments:

PPF: Rs. 500 per month.
NPS: Rs. 500 per month.
Mutual Fund: Rs. 500 per month.
Recurring Deposit (RD): Rs. 500 per month.
Investment Duration: 2 years.

Good Aspects:

Investment Habit: Investing regularly shows discipline.

Diversification: You're diversifying across different instruments.

Financial Planning Insights
Assessing Current Investments
PPF and NPS: Good for long-term retirement planning.

Mutual Fund and RD: Offers a mix of market-linked and guaranteed returns.

Recommendations for Mutual Funds
Equity Mutual Funds
Diversified Funds: Consider large-cap and multi-cap funds. They offer stability and growth potential.

Mid and Small-cap Funds: Allocate a smaller portion. These funds have higher growth potential but also higher risk.

Debt Mutual Funds
Short-term Debt Funds: Useful for short-term goals. They offer better returns than traditional savings accounts.

Balanced Funds: A mix of equity and debt. Provides moderate growth with lower risk.

Recommendations for Stocks
Large-cap Stocks
Stability: Large-cap stocks are less volatile and provide stable returns.

Research: Invest in companies with strong fundamentals and consistent performance.

Mid-cap and Small-cap Stocks
Growth Potential: These stocks can offer higher returns. However, they come with higher risk.

Diversification: Spread investments across sectors to mitigate risk.

Suggested Investment Strategy
Monthly Investment Plan
PPF: Continue with Rs. 500 per month.

NPS: Continue with Rs. 500 per month.

Mutual Fund: Increase to Rs. 2,000 per month. Split across diversified equity and debt funds.

RD: Continue with Rs. 500 per month.

Financial Goals
Short-term Goals (1-3 years)
Emergency Fund: Ensure you have an emergency fund covering 6-12 months of expenses.

Skill Enhancement: Invest in courses or certifications to enhance your earning potential.

Mid-term Goals (3-5 years)
Buying a Vehicle: If you plan to buy a vehicle, start a dedicated savings plan.

Travel Fund: If you wish to travel, save separately for your trips.

Long-term Goals (5+ years)
Home Purchase: Start saving for a down payment if you plan to buy a home.

Retirement Fund: Continue contributing to PPF and NPS for a secure retirement.

Risk Management
Insurance: Ensure you have adequate health and life insurance. It protects against unexpected events.

Diversification: Maintain a balanced portfolio across different asset classes.

Tax Planning
Tax-saving Investments: Utilize options like ELSS, PPF, and NPS to reduce taxable income.

Efficient Filing: File your taxes accurately and seek professional help if needed.

Final Insights
Regular Review: Periodically review and rebalance your portfolio to align with your goals.

Continuous Learning: Stay informed about personal finance and market trends.

Professional Guidance: Consulting a Certified Financial Planner can provide tailored advice and strategies.

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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