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Ramalingam

Ramalingam Kalirajan  |7100 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 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
Asked by Anonymous - Apr 22, 2024Hindi
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Hello Sir, I'm Saumya getting 37k in hand per month & I'm 26 years old. I want to start SIP with an amount of RS.5000, for this purpose on which mutual fund I should invest and how can I diversify my portfolio.

Ans: Hello Saumya, it's great to hear about your interest in starting a SIP to build your wealth at such a young age. With your monthly income of 37k, investing 5000 Rs in SIP is a prudent step towards your financial goals. Let's explore your options for mutual funds and portfolio diversification.

For your SIP investment, considering your age and risk appetite, you may opt for a diversified equity mutual fund. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, providing growth potential over the long term. Since you're starting with a moderate investment amount, you can consider starting with a single diversified equity fund initially.

Now, regarding diversification, it's essential to spread your investments across different asset classes to reduce risk. Alongside your equity SIP, you may also consider allocating a portion of your savings to debt mutual funds or fixed deposits. Debt funds offer stability and regular income, balancing the volatility of equity investments.

Moreover, considering your long-term financial goals, it's wise to diversify geographically as well. Investing in international funds or global ETFs can provide exposure to foreign markets, further diversifying your portfolio and reducing dependency on the domestic market.

As you progress and your income increases, you can gradually increase your SIP amount and diversify into more mutual funds across various categories. Regularly reviewing your portfolio's performance and rebalancing it based on your financial goals and market conditions is crucial for long-term success.

Remember, investing is a journey, and it's essential to stay committed and patient. Consulting with a Certified Financial Planner can provide personalized advice tailored to your financial situation and goals, helping you make informed investment decisions.

Starting early and being consistent with your investments will play a significant role in achieving your financial aspirations. Best of luck on your investment journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |7100 Answers  |Ask -

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

Asked by Anonymous - Mar 04, 2024Hindi
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Hello Dev I am 22 years old. I want to invest 25k monthly in SIP. Could you suggest me some mutual funds for investing. Risk appetite: moderately agressive. No specific reason for investment.
Ans: It's fantastic to see your proactive approach to investing at such a young age. Let's explore suitable mutual funds for your monthly SIP investment of 25k:

Considering your moderately aggressive risk appetite, we'll focus on funds with a blend of growth potential and risk management.

Diversification is key to managing risk in your investment portfolio. We'll spread your investments across different asset classes and investment styles.

Equity funds offer the potential for high returns over the long term, but they come with higher volatility. We'll allocate a portion of your SIP towards diversified equity funds to capture growth opportunities.

To mitigate risk, we'll also consider allocating a portion of your SIP towards balanced funds or aggressive hybrid funds. These funds invest in a mix of equities and debt instruments, providing a balance between growth and stability.

Regular review and monitoring of your investment portfolio are essential to ensure it remains aligned with your risk tolerance and investment goals.

Keep in mind that investing is a journey, and it's essential to stay disciplined and patient, especially during market fluctuations.

Remember to review your investment strategy periodically and make adjustments as needed based on changing market conditions or personal circumstances.

In conclusion, by investing in a diversified portfolio of mutual funds, you can potentially achieve your long-term financial goals while managing risk effectively.

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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