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

Ramalingam Kalirajan  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 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 - Jan 25, 2024Hindi
Listen
Money

Hello Sir I am 22 year old and I can invest around Rs3000 per month with better job opportunity and time period I can increase my investment amount, I want to know where I can invest my savings every month for better returns, I can invest for next 30-35 years regularly for sure. Kindly guide me where and how to invest .

Ans: That's a fantastic start! Thinking about long-term investments at your age is a smart decision. Here are some options for where you can invest your Rs.3000 per month, considering a 30-35 year investment horizon:

Systematic Investment Plan (SIP) in Mutual Funds:

This is a popular option for regular investment with rupee-cost averaging. You invest a fixed amount each month, and the units are purchased based on the prevailing Net Asset Value (NAV).
Benefits:
Disciplined Investing: Encourages regular savings and avoids the need to time the market.
Rupee-Cost Averaging: Purchases more units when the NAV is low and fewer units when it's high, potentially balancing the overall cost per unit.
Long-Term Growth: Equity mutual funds have the potential for significant growth over the long term (typically 10+ years).
Investment Options:
Large-cap Funds: Invest in stocks of well-established companies with a proven track record.
Multi-cap Funds: Invest across companies of different market capitalizations (large, mid, and small).
Consider a mix of these based on your risk tolerance.
Here's how to get started with SIP in Mutual Funds:

Choose a SEBI-registered Mutual Fund Company (AMC): Research and compare different AMCs based on their performance and fund offerings.
Select a Suitable Mutual Fund Scheme: Consider your risk tolerance and investment goals.
Open an Investment Account: You can open an account with the AMC directly or through a broker/distributor.
Start your SIP: Set up a recurring transfer of Rs.3000 per month to your chosen SIP.
Additional Tips:

Increase Investment as Income Grows: As your income increases, consider raising your SIP amount to reach your financial goals faster.
Stay Invested for Long Term: Market fluctuations are normal. Don't panic and redeem your investments during downturns. A long-term horizon allows time for the market to recover and potentially generate good returns.
Review and Rebalance: Periodically review your portfolio performance (at least annually) and rebalance if needed to maintain your desired asset allocation.
Other Options to Consider:

Public Provident Fund (PPF): A government-backed scheme offering guaranteed returns and tax benefits. However, PPF has lower liquidity compared to mutual funds.
Employee Provident Fund (EPF): If you're salaried, your employer likely contributes to your EPF. This offers good long-term returns and tax benefits.
Remember:

I can't provide specific financial advice. Consulting a Certified Financial Planner (CFP) can be helpful, especially for a personalized investment plan considering your risk tolerance and goals.
Start with your research! Read about different investment options, mutual funds, and SIPs before making any decisions.
By starting early, investing regularly, and staying disciplined, you can build a significant corpus for your future over the next 30-35 years.
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  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 02, 2024Hindi
Listen
Money
Hi, I'm 35 yrs I can invest 25000-50000 per month, where should i invest. I can take moderate risk, 10yrs time horizon, I invested 10lakhs in direct shares already. Investing in Mirae ELSS monthly 4000rupees Not invested in any other mutual funds. I earn monthly 1 lakh, no emi, i can save 80k per month, let me know where i can invest 25-50k monthly
Ans: It's great to see your proactive approach to investing and your willingness to explore additional investment avenues. Given your risk tolerance, time horizon, and monthly saving capacity, mutual funds can be an excellent option to diversify your portfolio and potentially enhance returns over the long term. Here's a suggested approach for your monthly investments of 25,000 to 50,000 rupees:

Increase SIP Investment:
Since you're already investing in Mirae ELSS with a monthly SIP of 4,000 rupees, consider increasing your SIP amount in this fund or adding SIPs in other mutual funds.
Diversify Across Fund Categories:
Allocate your monthly investment across different categories of mutual funds to diversify your portfolio and manage risk effectively.
Consider investing in large-cap, mid-cap, and multi-cap funds to gain exposure to different segments of the market.
Consider Systematic Investment Plans (SIPs):
SIPs offer the advantage of rupee cost averaging and disciplined investing, making them suitable for long-term wealth creation.
You can start SIPs with varying amounts in different funds based on your risk appetite and investment objectives.
Fund Selection:
Choose mutual funds with a proven track record of consistent performance, experienced fund managers, and a robust investment process.
Look for funds with low expense ratios and high-quality portfolios that align with your investment goals and risk profile.
Regular Monitoring and Review:
Keep a close eye on the performance of your mutual fund investments and regularly review your portfolio to ensure it remains aligned with your financial objectives.
Make adjustments to your investment strategy as needed based on changes in market conditions, your risk tolerance, and investment goals.
Seek Professional Advice:
Consider consulting with a financial advisor or Certified Financial Planner to develop a customized investment plan tailored to your specific needs and goals.
A professional can provide valuable insights and guidance to help you make informed investment decisions and navigate the complexities of the financial markets.
By diversifying your investments across mutual funds and adopting a disciplined approach to investing, you can potentially achieve your financial goals and build wealth over the long term. Remember to stay patient, stay focused on your long-term objectives, and avoid making impulsive investment decisions.

..Read more

Ramalingam

Ramalingam Kalirajan  |8934 Answers  |Ask -

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

Asked by Anonymous - May 14, 2024Hindi
Listen
Money
Hello My Age is 23 and currently earning a income of 40000 per month where should I invest pls describe the amount of investment allotment also in different sectors like MF, INSURANCE, ETC. I would like to invest monthly around 20000.
Ans: Congratulations on taking the initiative to invest at a young age! Let's explore a diversified investment strategy tailored to your financial situation and goals.

Assessing Investment Allocation
Mutual Funds (MF):

Allocate a significant portion of your monthly investment towards mutual funds, considering their potential for long-term growth and diversification benefits.
Aim to invest around 60-70% of your monthly investment amount in mutual funds across various categories such as large-cap, mid-cap, and multi-cap funds.
Insurance:

While insurance is essential for financial protection, allocate a smaller portion of your investment towards insurance premiums.
Consider investing around 10-20% of your monthly investment amount in insurance policies such as term insurance for adequate coverage.
Emergency Fund:

Build an emergency fund equivalent to 3-6 months of living expenses to cover unexpected financial needs.
Allocate a portion of your monthly investment towards gradually building your emergency fund until it reaches the desired level.
Other Investments:

Explore other investment avenues such as fixed deposits, recurring deposits, or Public Provident Fund (PPF) for stable returns and tax benefits.
Allocate a small portion of your monthly investment, around 10-20%, towards these conservative investment options to ensure a balanced portfolio.
Advantages of Actively Managed Funds Over Index Funds
Actively managed mutual funds offer the expertise of professional fund managers who actively select and manage the fund's investments to outperform the market.
These funds have the flexibility to adapt to changing market conditions and capitalize on investment opportunities, potentially yielding higher returns.
Unlike index funds, which passively track a market index, actively managed funds can generate alpha through active portfolio management and security selection.
Considerations for Direct Fund Investment
While direct funds offer lower expense ratios compared to regular funds, they require active involvement in research, monitoring, and portfolio management.
Direct fund investors must possess the necessary knowledge and expertise to select suitable funds and manage their investment portfolio effectively.
Investing through a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD) provides access to professional guidance and personalized investment advice, enhancing the overall investment experience.
Conclusion
By following a disciplined investment approach and diversifying across various asset classes, you can build a robust investment portfolio that aligns with your financial goals and risk tolerance. Remember to review your investments periodically and make adjustments as needed to stay on track towards achieving your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 2024

Asked by Anonymous - Jun 12, 2024Hindi
Money
Hello Sir, I am a 43 yr old married female, I have just started earning Rs 36000 monthly after taxes. I want to invest this money for the future and don't want to touch it for around 5 yrs. My question: Where should I invest monthly where I get interest also? 2. There should not be a lock in period so that we can take this money whenever there is a requirement. I have limited knowledge on finance, need your guidance Regards,
Ans: Understanding Your Financial Goals
Congratulations on your new source of income! Investing Rs 36,000 monthly is a significant step toward a secure financial future. Let's explore investment options that align with your goals. We'll look for avenues that offer interest, have no lock-in period, and allow easy access to funds when needed.

The Importance of Liquidity
Liquidity refers to how easily an asset can be converted into cash without affecting its market price. For you, liquidity is crucial because you want to access your money anytime without penalties. This requirement will guide our investment choices.

Systematic Investment Plans (SIPs)
SIPs are a popular way to invest in mutual funds. By investing a fixed amount every month, you can benefit from rupee cost averaging. This means you buy more units when prices are low and fewer when prices are high. Over time, this can lead to better average purchase prices.

Advantages: Potential for higher returns compared to traditional savings accounts. Flexibility to withdraw funds anytime without penalties.

Disadvantages: Market risks can affect returns. Requires understanding of mutual fund performance.

Debt Mutual Funds
Debt mutual funds invest in fixed-income instruments like government securities, corporate bonds, and money market instruments. They are less volatile than equity funds, making them a safer option for conservative investors.

Advantages: Lower risk compared to equity funds. Better returns than savings accounts or fixed deposits.

Disadvantages: Interest rate risk and credit risk. Returns are not guaranteed and can fluctuate.

Recurring Deposits (RDs)
Recurring deposits allow you to invest a fixed amount every month in a bank account for a predetermined period. They offer guaranteed returns at a fixed interest rate.

Advantages: Guaranteed returns with no risk. Suitable for conservative investors looking for stability.

Disadvantages: Interest rates may be lower than inflation rates. Limited flexibility in withdrawing funds early.

Public Provident Fund (PPF)
While PPFs typically have a lock-in period, they offer tax benefits and guaranteed returns. Partial withdrawals are allowed after a certain period, providing some liquidity.

Advantages: Tax benefits under Section 80C. Safe investment with government backing.

Disadvantages: Limited liquidity with lock-in periods. Lower returns compared to some market-linked investments.

Liquid Funds
Liquid funds are a type of mutual fund that invests in short-term money market instruments. They offer high liquidity and are suitable for parking surplus funds for short durations.

Advantages: High liquidity with no lock-in period. Better returns than savings accounts.

Disadvantages: Returns can be slightly volatile. Not suitable for long-term growth.

Ultra-Short Duration Funds
These funds invest in instruments with slightly longer maturity than liquid funds but still maintain high liquidity. They offer better returns than liquid funds with minimal interest rate risk.

Advantages: Higher returns than liquid funds. High liquidity with minimal risks.

Disadvantages: Slightly higher risk than liquid funds. Returns can fluctuate.

Benefits of Actively Managed Funds
Actively managed funds are overseen by professional fund managers who make investment decisions to outperform the market. These funds can offer better returns than passive index funds, which simply track a market index.

Advantages: Potential for higher returns through active management. Professional expertise in managing investments.

Disadvantages: Higher management fees compared to index funds. No guaranteed outperformance.

Evaluating Your Risk Tolerance
Understanding your risk tolerance is crucial before choosing an investment option. Since you have limited knowledge in finance, starting with low to moderate-risk investments might be more comfortable. Over time, as you become more familiar with investment concepts, you can gradually increase your risk exposure for potentially higher returns.

Emergency Fund Allocation
It's essential to set aside a portion of your monthly income as an emergency fund. This fund should cover at least 3 to 6 months of your expenses. It ensures you have immediate access to cash in case of unforeseen circumstances, without having to dip into your investments.

Automating Your Investments
Automating your monthly investments can help ensure consistency and discipline. Many banks and financial institutions offer automatic transfer services, which can regularly move funds from your salary account to your chosen investment options.

Monitoring and Rebalancing
Regularly monitoring your investments is key to staying on track with your financial goals. Periodic rebalancing ensures your investment portfolio remains aligned with your risk tolerance and market conditions. It involves adjusting your investment allocations to maintain your desired risk level.

Seeking Professional Guidance
While the information provided here aims to guide you in making informed decisions, consulting with a Certified Financial Planner (CFP) can offer personalized advice tailored to your specific needs and goals. A CFP can help you design a comprehensive financial plan and recommend suitable investment options.

Avoiding Common Pitfalls
Here are some common mistakes to avoid while investing:

Lack of Diversification: Spreading investments across various asset classes can mitigate risks.

Chasing High Returns: High returns often come with high risks. Focus on consistent and stable returns.

Ignoring Inflation: Ensure your investment returns outpace inflation to maintain purchasing power.

Not Reviewing Regularly: Regular reviews help adapt your investment strategy to changing goals and market conditions.

Tax Implications
Understanding the tax implications of your investments is crucial. Different investment options have different tax treatments. For instance, interest earned on recurring deposits is fully taxable, while long-term capital gains from equity mutual funds enjoy favorable tax treatment. Tax-efficient investments can enhance your overall returns.

Safety and Security
When choosing investment options, prioritize safety and security. Invest in regulated financial products and institutions to safeguard your capital. Avoid schemes that promise unusually high returns with little or no risk, as they are often too good to be true.

Financial Education
Enhancing your financial knowledge can empower you to make better investment decisions. Numerous online resources, courses, and workshops can help you understand basic and advanced financial concepts. Becoming financially literate will benefit you in the long run.

Final Insights
Investing Rs 36,000 monthly is a commendable step toward securing your financial future. Prioritize liquidity, diversify your investments, and seek professional advice to optimize your returns. Regularly review and adjust your investments to stay aligned with your goals. By making informed decisions and staying disciplined, you can achieve financial stability and growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8934 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Listen
Money
I am 35 and have a monthly income of 50000 and my savings are zero and all my commitment are cleared. I am ready to invest 12000 per month for the next 25 years. Can u please suggest how and where to invest.
Ans: At 35, with a monthly income of Rs. 50,000 and no current savings, you have a great opportunity to start building your financial future. Investing Rs. 12,000 per month over the next 25 years can help you achieve significant wealth. Here’s a detailed plan to guide your investments.

Investment Strategy
1. Diversified Portfolio:

Equity Mutual Funds: These funds have the potential for high returns over the long term.
Debt Mutual Funds: These funds provide stability and lower risk.
Gold: A small portion in gold can act as a hedge against inflation.
Fixed Deposits: While they offer lower returns, they add safety to your portfolio.
2. Systematic Investment Plan (SIP):

SIPs help in disciplined investing.
They average out market volatility over time.
Investing Rs. 12,000 monthly through SIPs will ensure regular and consistent investments.
Recommended Allocation
Equity Mutual Funds:

Allocate 60% of your investment to equity mutual funds.
This equals Rs. 7,200 per month.
Choose a mix of large-cap, mid-cap, and small-cap funds for diversification.
Debt Mutual Funds:

Allocate 20% to debt mutual funds.
This equals Rs. 2,400 per month.
These funds provide stability and reduce overall portfolio risk.
Gold:

Allocate 10% to gold.
This equals Rs. 1,200 per month.
Invest through gold bonds or gold ETFs.
Fixed Deposits:

Allocate 10% to fixed deposits.
This equals Rs. 1,200 per month.
This provides a safety net and liquidity.
Step-by-Step Plan
1. Start with Emergency Fund:

Build an emergency fund to cover 6 months of expenses.
Use your fixed deposit allocation to build this fund initially.
2. Begin SIPs:

Set up SIPs for equity mutual funds, debt mutual funds, and gold.
Automate your investments to ensure consistency.
3. Review and Adjust:

Review your portfolio every six months.
Adjust your allocations based on performance and market conditions.
4. Increase Investment Over Time:

Aim to increase your monthly investment by 5-10% annually.
This helps in countering inflation and increasing wealth.
Choosing the Right Funds
Equity Mutual Funds:

Look for funds with a consistent track record.
Choose funds managed by experienced fund managers.
Diversify across different sectors and market capitalizations.
Debt Mutual Funds:

Opt for funds with lower credit risk.
Look for funds that invest in high-quality debt instruments.
Consider funds with a good track record of stable returns.
Gold Investments:

Prefer sovereign gold bonds for better returns.
Gold ETFs offer liquidity and ease of investment.
Additional Tips
1. Tax Planning:

Utilize tax-saving mutual funds (ELSS) for tax benefits.
ELSS funds have a lock-in period of three years but offer tax deductions.
2. Financial Discipline:

Avoid withdrawing from your investments prematurely.
Stick to your investment plan regardless of market fluctuations.
3. Knowledge and Awareness:

Stay informed about market trends and financial news.
Consider consulting a Certified Financial Planner for personalized advice.
Final Insights
Starting your investment journey at 35 with a disciplined approach can yield significant returns over 25 years. Diversify your portfolio across equity, debt, gold, and fixed deposits to balance risk and reward. Regularly review and adjust your investments to stay on track with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |3474 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 18, 2025

Nayagam P

Nayagam P P  |6515 Answers  |Ask -

Career Counsellor - Answered on Jun 18, 2025

Asked by Anonymous - Jun 16, 2025
Career
Dear Sir, My son's JEE mains (year 2025) rank is 52330. JEE ADVANCED rank is 13975. General catagory. IAT score 139 marks. He is interested in research in Physics and / or Maths from IISC / top 3 IISERs. His class 12th score is 99% for MPC and overall 86%. Please guide.
Ans: With an IAT score of 139 placing him within the 120–130 general cutoff bracket, top IISERs including Pune, Kolkata and Mohali are within reach; their last-round closing ranks ranged between 1,023 (Pune) and 1,801 (Kolkata) in 2024, translating to expected IAT marks of 125–140 for general candidates. His JEE Advanced rank of 13,975 fits IISc Bangalore’s BSc Physics cutoff of 903–1,000 (General AI quota) and BSc Mathematical Sciences cutoff near 1,095, though female cutoff relaxations slightly wider for general candidates. JEE Main rank (52,330) cannot secure BSc at IISc via JoSAA’s AI quota but JEE Advanced suffices. His 99% in PCM and 86% aggregate meet all eligibility criteria. IISc’s BSc Research programs report 90–95% placement rates over three years in STEM roles, while IISER graduates similarly achieve 85–92% placements in academic and research positions. Recommendation: Prioritize registering for IAT counselling with preferences set to IISER Pune, IISER Kolkata and IISER Mohali, while listing IISc BSc Physics and Mathematics at the top contingent on JEE Advanced rank, ensuring multiple high-probability research-focused admission avenues. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |6515 Answers  |Ask -

Career Counsellor - Answered on Jun 18, 2025

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