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How to Achieve a 20 Crore Investment Goal by Age 45 with a 2 Lakh Monthly Salary?

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 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 - Jul 09, 2024Hindi
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Hello Sir, I am 25 years old.I am investing 23,000 Evey month in MF(60% in mid cap, 30% large cap and 10 to 15% around small cap). I will increase my SIP with my salary like if I got 15 to 20% hike. I want to increase my SIP accordingly. I want 20 crore of age of 45. Pls guide me. how can I achieve my Goal. My salary is 2 lakh per month!!!

Ans: You want Rs. 20 crores by age 45. This is a significant goal, but achievable with disciplined investing.

Current Investment Strategy
SIP Allocation
60% in mid-cap funds

30% in large-cap funds

10% in small-cap funds

Monthly Investment
Rs. 23,000 per month currently
Future SIP Increases
Plan to increase SIP with salary hikes
Evaluating Your Current Strategy
Mid-Cap Funds
Growth Potential: Mid-cap funds offer high growth potential.

Risk: They are riskier compared to large-cap funds.

Large-Cap Funds
Stability: Large-cap funds are stable and provide steady returns.

Lower Risk: Less volatile compared to mid-cap and small-cap funds.

Small-Cap Funds
High Growth: Small-cap funds can provide high returns.

High Risk: They are the most volatile.

Recommendations to Achieve Rs. 20 Crores
Increase SIPs Regularly
Annual Increases: Increase your SIPs by 15-20% annually.

Bonus Investments: Invest additional income from bonuses.

Diversify Your Portfolio
Balanced Approach: Consider adding debt funds for stability.

Reduce Risk: Balance high-risk investments with safer options.

Consider Actively Managed Funds
Expert Management: Actively managed funds can outperform index funds.

Regular Reviews: Ensure fund managers are adjusting to market conditions.

Avoid Direct Funds
Lack of Guidance: Direct funds lack professional guidance.

Benefits of Regular Funds: Investing through a Mutual Fund Distributor (MFD) with CFP credentials ensures expert advice.

Long-Term Investment Discipline
Stay Invested
Market Volatility: Do not panic during market downturns.

Long-Term Focus: Keep your focus on the long-term goal.

Rebalance Your Portfolio
Regular Reviews: Review your portfolio every six months.

Adjust Allocations: Rebalance based on performance and market conditions.

Tax Efficiency
Utilize Tax-Saving Instruments
ELSS Funds: Consider Equity Linked Savings Scheme for tax benefits.

NPS: National Pension System offers tax benefits and long-term growth.

Emergency Fund
Maintain Liquidity
Emergency Savings: Keep 6-12 months of expenses in a liquid fund.

Avoid Withdrawal: Do not dip into your SIP investments for emergencies.

Professional Guidance
Certified Financial Planner
Expert Advice: Consult a Certified Financial Planner for personalized strategies.

Regular Check-ins: Schedule regular reviews with your planner.

Final Insights
To achieve Rs. 20 crores by age 45, increase your SIPs regularly and diversify your portfolio. Balance high-risk investments with safer options and consider actively managed funds. Stay disciplined, review your portfolio regularly, and seek professional advice to stay on track.

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  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

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I do SIP of rs 8k per month since 6yrs in SBI bhuechip -2k, SBI focused equity -2k, HSBC small cap -2k, Canararobecco em eq. -2k .Wanted to increase upto 12k per month.Now i am 41 and moderate. Suggest modifications for long term pls.
Ans: Your commitment to systematic investing is commendable, and I'm here to assist you in optimizing your portfolio for long-term growth and stability.

Understanding Your Current Portfolio
Your SIP investments reflect a diversified approach, spanning large-cap, focused equity, small-cap, and emerging market equities. This blend offers exposure to various market segments, mitigating risk and maximizing growth potential.

Assessing Risk Tolerance and Investment Horizon
As you approach your 40s, it's crucial to reassess your risk tolerance and align your investments with your long-term financial goals. Considering your moderate risk appetite and long investment horizon, we'll tailor a strategic plan to optimize returns while managing risk.

Proposed Modifications
Diversification: Expand your portfolio to include additional asset classes like debt funds or hybrid funds. This diversification can provide stability during market downturns while still offering growth opportunities.

Equity Allocation: Given your moderate risk profile, consider rebalancing your equity allocation to reduce exposure to volatile segments like small-cap and emerging market equities. Focus on quality large-cap and focused equity funds for steady growth.

Systematic Increase: Gradually increase your SIP contributions to 12,000 per month, allowing for incremental growth while maintaining discipline in your investment approach.

Periodic Review: Regularly review your portfolio's performance, market trends, and personal financial goals. Adjust your investment strategy as needed to stay aligned with evolving circumstances.

Benefits of Active Management
Active fund management offers the advantage of professional expertise and adaptability to changing market conditions. Skilled fund managers actively research and select stocks, aiming to outperform the market and deliver superior returns over time.

Disadvantages of Index Funds
Index funds may lack the flexibility and potential for outperformance offered by actively managed funds. They're inherently tied to the performance of the underlying index, limiting opportunities to capitalize on market inefficiencies or emerging trends.

Conclusion
By strategically modifying your portfolio, you can optimize returns and mitigate risk, ensuring a secure financial future. As a Certified Financial Planner, I'm committed to guiding you on this journey towards financial prosperity and peace of mind.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2024

Asked by Anonymous - Jul 11, 2024Hindi
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I am 46 , earning 3 lakhs per month Investment 50 thousands in sip. Goal of atleast 2 cr in 10 years, will increase SIP ANNUALLY.. CAN YOU GUIDE ME..
Ans: Achieving a Rs. 2 Crore Goal in 10 Years: Strategic SIP Planning
Current Investment Scenario
You are 46 years old and earn Rs. 3 lakhs per month. You invest Rs. 50,000 per month in a SIP. Your goal is to accumulate at least Rs. 2 crores in 10 years. You plan to increase the SIP amount annually.

Importance of SIP for Wealth Creation
SIP is a disciplined investment strategy. It helps in building wealth over time. Investing monthly reduces market timing risk. SIP benefits from rupee cost averaging. This ensures you buy more units when prices are low.

Choosing the Right Funds
Select funds with a good track record. Actively managed funds are recommended. They adjust portfolios based on market changes. This can lead to better returns compared to index funds. Consulting a Certified Financial Planner (CFP) can help in fund selection.

Annual Increase in SIP
Increasing your SIP annually can significantly boost returns. Even a 10-15% annual increase can make a big difference. It ensures that your investment keeps pace with inflation and growing income.

Diversification for Risk Management
Diversify your SIP investments. Include large-cap, mid-cap, and small-cap funds. This mix balances potential returns and risks. Diversification can protect against market volatility.

Monitoring and Rebalancing
Regularly monitor your investments. Rebalance the portfolio to stay aligned with goals. Adjust based on market conditions. This ensures your portfolio remains on track.

Avoid Direct Funds
Direct funds might seem cost-effective. However, they lack professional guidance. Investing through a CFP ensures informed decisions. They provide valuable insights and help in fund selection.

Benefits of Regular Funds
Regular funds offer expert management. A CFP can guide on the best funds. They help in navigating market complexities. Regular funds ensure informed investment decisions.

Calculating Expected Returns
Assume an average annual return of 12-15% for equity funds. With a starting SIP of Rs. 50,000, increasing annually, you can achieve your goal. Regularly increasing the SIP amount enhances your corpus over time.

Risks and Considerations
Investing in mutual funds involves market risks. The value of your investment can fluctuate. Stay informed about market trends and fund performance. Regular reviews and adjustments are crucial. A CFP can assist in managing risks effectively.

Final Insights
Investing Rs. 50,000 per month in SIPs is a wise strategy. Choose actively managed funds with strong performance records. Plan to increase your SIP amount annually. Diversify your investments to manage risk. Regularly monitor and rebalance your portfolio. Consulting a CFP can provide valuable guidance in fund selection and investment strategy. This approach will help you achieve your goal of Rs. 2 crores in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 20, 2024Hindi
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Sir i am 32 and recently i have started sips in mutual fund for 20k month and i set my goal to achieve 2 crore at my age of 45 will i need to my sip or any other investment can i do to achieve my goal suggestion please.
Ans: Assessing Your Goal and Current Investment Strategy
Your Financial Goal

Objective: Accumulate Rs 2 crore by age 45.
Current Age: 32.
Investment Horizon: 13 years.
Current Investment Strategy

Monthly SIP Amount: Rs 20,000.
Investment Vehicle: Mutual Funds.
Evaluating Your SIP
Return Expectations

Historical Returns: Equity mutual funds typically offer 12-15% annual returns.
Growth Projection: Evaluate if Rs 20,000 monthly can reach Rs 2 crore in 13 years.
Calculating Potential Growth
Scenario Analysis

Assumed Returns:

12% annual return: Approximately Rs 1.02 crore.
15% annual return: Approximately Rs 1.22 crore.
Gap Analysis: There might be a shortfall in achieving Rs 2 crore with Rs 20,000 SIP at these returns.

Recommendations for Achieving Your Goal
Increase SIP Amount

Revised SIP Calculation: Increase your SIP amount to bridge the gap.
Optimal SIP: Calculate based on desired corpus and realistic return rates.
Diversify Investments

Balanced Portfolio: Consider adding debt funds for stability.
Equity Allocation: Keep a higher equity allocation for growth.
Regular Review and Adjustments

Annual Review: Assess your portfolio annually to ensure it’s on track.
Adjust SIP: Increase SIP amount based on income growth and market performance.
Additional Investment Strategies
Lump Sum Investments

Windfall Gains: Invest any bonuses or windfall gains to boost your corpus.
Regular Top-ups: Add lump sum investments periodically.
Alternative Investment Options

Avoid Direct Funds: Regular funds with a certified financial planner offer professional management and guidance.
Avoid Index Funds: Actively managed funds typically outperform in the long run due to expert management.
Risk Management
Insurance Coverage

Life Insurance: Ensure adequate life insurance to cover financial risks.
Health Insurance: Comprehensive health insurance to mitigate medical expenses.
Emergency Fund

Liquidity: Maintain an emergency fund covering 6-12 months of expenses.
Final Insights
Commitment: Consistency in SIPs is crucial for long-term wealth creation.
Review and Adjust: Regularly review your portfolio and adjust investments based on performance and goals.
Consultation: Engage with a Certified Financial Planner for personalized advice and strategy.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ans: Dear Shristi,
It is obviously very shocking for you to know that things have been happening behind your back.
Now, how you want this to move on from here on, is a decision only you must make! Have you had a chat with your wife about the association that she has with the other person? Does she know that you know about it?
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Hello madam I a 32 year old married man with a kid , who is 6 years old. I have done arrange marriage with my own decision I agreed to my parents for the marrige at that time I was in a casual relationship with a girl I didn't said anything to the girl and get married to someone else. After that I tried to live a happay life with my wife without thinking about the girl whom I left behind, from outside I tried to be happy with my wife but my wife thought doesn't matches with me so I felt so disturbed from inside. Still I was trying to continue the relationship for sake of our child but suddenly I got my ex love contact and I was so happy that after so long time I got a chance to talk to her, I have tried to meet her but she always refused to meet me because she was in a relationship. I tried many times and due to some misconduct I again lost her for the second time. At this moment when she is not with me her thoughts memories are troubling me so much I am in pain, what am I suppose to do to get rid of the pain?? Please help
Ans: Dear Anonymous,
There is no point wanting a 'past' relationship just because you have one...what if that relationship did not exist, you would have possibly made efforts to make your marriage work, right?
Then do just that...DO NOT treat your marriage as an option...which marriage is a perfect one? And are all spouses tailor-made to fit one another?
So, if her thoughts don't match with yours, then even yours don't match with hers...so, should she also think of jumping into some other relationship. Please act mature about this especially with a child in the entire equation; try and understand each other...speak about your differences and find ways of working on them by accepting them. Ex-love etc looks all very nice, but come down to ground reality; please...work on your marriage!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

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I am 50 years old and got married 15 years ago. I am a very spontaneous sort of a guy and enjoy life, partying etc. I was also very active socially.My wife being the complete opposite put a stop to all that once we got married. She also does not display any affection and has no interest in physical intimacy. She is just concerned with her housework.We also have lot of differences in mental attitude & intellectual abilities. At no stage will we ever seperate, however, I am unhappy with her nature. She has lot of friends, however is always at daggers drawn with in her in laws. We had to stay separately for 6 months, and I tried looking for love else where, however after a couple of months, I realised, that I missed her. I am in a quandary. Despite requesting her to work on our relationship, I get no response. Please advise on how to proceed.
Ans: Dear Anonymous,
I understand you are in a tough spot. But it's nice to see that after all those years of differences, you still have genuine feelings for her. I strongly suggest considering marriage counseling. From your description of your marriage, it seems to be there have been issues from the very beginning of it. It's been too long and now those issues must've become deep-rooted. Seeing a professional can be a game-changer. They can guide you out of this slump more methodically and help you navigate the emotions you are feeling right now. It can also help you understand the reasons for your wife's disinterest and handle it better.

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Hii, I have an love marriage after 9 years of dating and 6 years, 2 children post marriage, my little one is 11 months old now. My husband has an affair upto chatting to someone in his company, his junior but in different department, when my Lil one was 1 month old, we had in a rough patch then due to child birth and family drama. When I saw it and confronted him, he said he is sorry and won't do it again, we had multiple fights for 3-4 months after then due to same reason, but he mostly listen and consol. It's been a lot of mental torture for me. I love my husband a lot and he is a good person, but sometimes sill I see her msg in his phone asking for small helps or casual msg. She is also married. I am not sure my husband deletes msg or what, I am not able to get over this. Before it, this is was preety much a good relationship. I am highly educated and independent women. I don't want anything form my husband apart from love. What should I do, whenever I tell him I want to just leave and let him have his life, he won't let me somehow. We are having a good physical relationship 2-4 times a week( just to tell where we are). Please help me...I can't overcome that he is making fool of me...
Ans: Dear Anonymous,
I am sorry to hear you are in such a tough spot. I would suggest considering marriage counseling. A professional who can help you both tackle these issues would be helpful in this situation. I understand that it was his mistake and he needs to put the effort to make you trust him again, but since you are still together, you will also have to put in the effort to let it. I know it is difficult and that's where marriage counselor comes in. They can help you navigate these feelings. Moreover, if he is indeed hiding something, therapy can help that come out in the open.

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Asked by Anonymous - Sep 10, 2024Hindi
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Hi, Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. Partner(F28)continuing friendship with a person[M] who had crush on her before marriage considered emotional infidelity? Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. My wife is having friendship (strictly platonic) with a guy from her 10tlh grade (same class). Before our marriage (she may be doing her college, our relationship just started may be 2 weeks) this guy told her he has genuine interest in her and he want to take the relationship further if she wants, she said she is not interested in a relationship and she got committed, she always saw him as a friend, no other feelings for him and we can be friends if you don't bring any romantic interest again. He never took this talk again ever after and happy to be a friend. They are talking as friends. She got married to me. He also got married. They still do chats once in a month. She introduced me to him and visited his home when we visited his city. He also came to our home once (me and my family was there). She used to update me with chat she had with him and the content they are chatting. I am ok with that When we were talking about our school life and college life 2 years before. She said this guy had crush on her during her college days. I asked her, why did not she tell me this info till now. She said it is not purposely, she does not feel the need to do as the person is not in-appropriate with her and continuing as good friend as promised after she rejected his proposal. I don’t want to create any unnecessary issues as I don’t have any felling or so with him. That time I checked their chats completely, it’s about update about their common friends, their recent travel, their job, meditation courses and the books they read recently. I haven’t seen any flirting or romantic message from either of them. So I am perfectly fine with it and had no problems. I recently came to know about the concept of emotional cheating which is very new to me. Before that cheating to me is only flirting, sexeting and physical sex. I have asked for advice in redddit.com in infedility sub forum about emotional cheating/ emotion affair. There persons are advising like even having friendship with someone who had crush on you is emotional cheating as it is indirectly leading them on you. So with an omission of lie he had crush on her and indirectly leading him on you wife was emotionally cheating on you. This is very much equal to cheating. I do have lots of friends in other gender, but no one had crush on me. Does this count as emotional cheating/affair as she did not mention he had crush on her before marriage? I am little depressed and not able to spend quality time with my wife who is in postpartum depression and take care of our daughter properly as before. Do you guys advise me how to navigate this situation?
Ans: Dear Anonymous,
Are you really going to ruin your happy relationship based on some new term you have learned recently? Emotional cheating and many more terms of the kind will come and go, what truly matters is the truth. She is merely friends with this guy and for your peace of mind, you have even checked their conversations- what part of it looks like cheating to you? If tomorrow, some random person projecting their own insecurities claims that a man speaking to a woman is some "new form" of cheating, would you start believing that? My point is that these are just random opinions of some people- it isn't the ultimate truth. The entire context matters. This man had a crush on your wife, she rejected it, and now they are just friends. I find absolutely no misconduct or infidelity in this. The fact that none of your friends had a crush on you does not factor in at all. Moreover, your wife is in postpartum depression- that should be your biggest concern but here you are, giving more importance to the random 2 AM thoughts of some people you don't even know. Please rethink if you are being fair to your wife- the mother of your child.

Best Wishes

...Read more

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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