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Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 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
Anuj Question by Anuj on May 09, 2024Hindi
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Hello sir , I am 32 year old I am a salaried person around 60k per month and want to start SIP for my children education I have two children one is 6 year old and another one is 3 year old. Please suggest me the best

Ans: It's fantastic that you're thinking ahead and planning for your children's education at such a young age. Starting SIPs (Systematic Investment Plans) is a smart way to build a corpus for their future educational expenses.
Considering your financial situation and your children's ages, here's a suggested approach:
1. Set Clear Goals: Determine the amount you'll need for each child's education, factoring in inflation and the type of education you aspire for them. This will help you set realistic investment targets.
2. Choose Suitable SIPs: Opt for diversified equity mutual funds that have a track record of consistent performance and align with your investment goals and risk tolerance. Look for funds with a long-term horizon and a focus on capital appreciation.
3. Allocate Funds Wisely: Divide your SIP investments among different funds to spread risk and maximize growth potential. Consider a mix of large-cap, mid-cap, and multi-cap funds to achieve diversification and optimize returns.
4. Start Early and Stay Consistent: Time is your biggest ally when it comes to investing. Start your SIPs as soon as possible to benefit from the power of compounding. Even small, regular investments can grow substantially over time with discipline and consistency.
5. Review and Adjust Regularly: Periodically review your SIP investments to ensure they're on track to meet your goals. Make adjustments as needed based on changes in your financial situation, market conditions, and investment objectives.
6. Stay Disciplined: Avoid the temptation to withdraw or stop your SIPs during market fluctuations. Stay focused on your long-term goals and continue investing consistently, regardless of short-term market movements.
7. Consider Tax Implications: Keep tax efficiency in mind while selecting SIPs. Opt for funds with favorable tax treatment like Equity Linked Savings Schemes (ELSS) for potential tax benefits under Section 80C of the Income Tax Act.
Remember, education is one of the most valuable investments you can make for your children's future. By starting SIPs early and staying disciplined, you can build a solid financial foundation to provide them with the best opportunities for education.

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  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2024

Asked by Anonymous - Jul 18, 2024Hindi
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HI, I am 41 years old and want to start a SIP to give a return of 20 lakh in next 15 yrs for children education. which fund I should choose?
Ans: Goal Assessment

You aim to accumulate Rs. 20 lakh over the next 15 years for your children's education.

Starting a SIP is a smart way to achieve this goal.

Let's explore the best approach to meet your objective.

Investment Horizon and Risk Appetite

You have a long-term horizon of 15 years.

This allows you to take on more risk for potentially higher returns.

Equity mutual funds are suitable for long-term goals.

Types of Equity Mutual Funds

Large-Cap Funds: Invest in big, stable companies. Less risky but moderate returns.

Mid-Cap Funds: Invest in medium-sized companies. Moderate risk and returns.

Small-Cap Funds: Invest in smaller companies. High risk but high returns.

Flexi-Cap Funds: Invest across various company sizes. Balanced risk and returns.

Why Not Index Funds?

Index funds follow the market. They lack active management.

Actively managed funds aim to beat the market.

This offers potentially higher returns.

For your goal, actively managed funds are better.

Benefits of Regular Funds

Professional Management: Managed by experts.

Personal Guidance: Certified Financial Planner can guide you.

Better Performance: Regular monitoring and adjustments.

Choosing the Right Funds

Diversify across different types of funds.

This balances risk and reward.

A mix of large-cap, mid-cap, and small-cap funds is ideal.

Example Allocation Strategy

Large-Cap Fund: 40% for stability and steady growth.

Mid-Cap Fund: 30% for moderate growth.

Small-Cap Fund: 20% for high growth potential.

Flexi-Cap Fund: 10% for balanced growth.

Regular Monitoring and Review

Review your investments annually.

Adjust based on performance and changing market conditions.

Seek advice from a Certified Financial Planner regularly.

Benefits of SIP

Discipline: Ensures regular investment.

Rupee Cost Averaging: Buys more units when prices are low.

Compounding: Helps in wealth creation over time.

Why Avoid Direct Funds?

Direct funds lack personal guidance.

You miss out on expert advice.

Certified Financial Planners provide valuable insights.

Final Insights

Starting a SIP for your child's education is a wise decision.

Choose a mix of large-cap, mid-cap, small-cap, and flexi-cap funds.

Regularly review and adjust your portfolio.

Seek professional guidance to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 29, 2024

Asked by Anonymous - Oct 28, 2024Hindi
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Hello Everyone one greetings! I am planning to start SIP. I AM 40 yrs n can invest 5000 monthly to start initially and continue for next 12-15yers. The goal to create some corpus for child education n their future needs.Any suggestion would help. I am unable find good fund across different fund houses. Thank you.
Ans: Starting a SIP with Rs. 5,000 per month is a great decision. With a disciplined approach over 12 to 15 years, this amount can grow significantly. Let’s structure your plan step by step.

1. Set Clear and Realistic Goals
Define how much you need for your child’s education or other future needs.

Estimate the timeline—when will the expenses occur (school, college, or higher education)?

Having a target amount will guide your investment strategy better.

2. Determine Your Risk Appetite
Since your investment horizon is 12 to 15 years, you can take moderate to high risks.

Long-term investments tend to perform better in equity-based funds.

If you want lower risk, you can mix equity with hybrid funds.

3. Avoid Index Funds and Choose Actively Managed Funds
Index funds may provide average returns, as they follow the market.

Actively managed funds can outperform markets, especially during volatility.

Professional fund managers adjust portfolios to benefit from changing market conditions.

This makes actively managed funds better suited for long-term goals.

 
4. Importance of Regular Funds over Direct Funds
Direct funds offer slightly lower costs but come with higher management challenges.

Choosing regular funds through a certified financial planner provides expert guidance.

They help you with fund selection, monitoring, and timely portfolio adjustments.

This ensures your investments stay aligned with your goals.


5. Diversify Across Different Fund Types
Spread your Rs. 5,000 SIP across multiple categories for better returns and risk management.

Consider allocating across large-cap, mid-cap, and hybrid funds.

Large-cap funds offer stability, while mid-cap funds provide growth potential.

Hybrid funds ensure some safety by combining equity and debt.

6. Increase SIPs Over Time
Start with Rs. 5,000 monthly and increase it by 10-15% annually.

This helps you counter inflation and meet rising education costs.

Even a small increase yearly will have a big impact over time.

7. Monitor and Rebalance Regularly
Track your portfolio performance every 6 to 12 months.

If a fund underperforms for long, switch to a better-performing fund.

As the education expenses approach, shift some investments to safer instruments.

This helps protect your corpus from sudden market drops.

8. Understand Taxation of Mutual Funds
For equity funds, long-term capital gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term capital gains are taxed at 20%.

Debt funds are taxed according to your income tax slab.

Plan withdrawals smartly to reduce tax impact on your earnings.

9. Use Lump Sum Investments for Boosting Growth
Apart from SIPs, invest lump sums whenever possible, such as bonuses or gifts.

Lump sum investments in hybrid funds can stabilise returns.

This strategy will ensure your overall corpus grows faster.
10. Stay Disciplined During Market Volatility
The market may fluctuate, but SIPs work best during corrections.

Continue investing even in downturns to benefit from rupee cost averaging.

Avoid panic-selling during market dips.

Staying invested ensures long-term wealth creation.

11. Avoid Investment-Cum-Insurance Policies
If you hold LIC or ULIP policies, they may offer low returns.

Consider surrendering such policies and reinvesting the proceeds into mutual funds.

Keep insurance and investments separate for better financial outcomes.

12. Consult a Certified Financial Planner
A planner helps with fund selection, portfolio tracking, and risk management.

They offer valuable insights that ensure your investments stay on course.

Their expertise makes investing less stressful and more efficient for you.

13. Finally: Keep a Long-Term Focus
Building a corpus takes time, patience, and consistent effort.

Celebrate small milestones along the way to stay motivated.

Adjust your investments based on life changes, like additional children’s needs.
Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Hi, I got married to my ex gf in an arranged setup. I had a 7 year of relationship with her before breakup. My career switch try from private to govt job was the reason. When I failed I returned back to corporate. 3 years after the breakup her father who is a good friend of my father sent proposal which led to our marriage. No one knew that we dated. We never had a word between the acceptance and marriage. None of us initiated the conversation. When she came after marriage her behavior towards me in private is totally strange. We never had an emotional conversation. Neither we discuss romance nor intimacy. In private we hardly have any intellect discussions which was an eternal part before our breakup. But when she is in public she behaves like she cares for me a lot. She is a darling of everyone in the house whether my parents or siblings. Most of the time she remains with my mother and she has good bond. In front of her she cares for me a lot. She had this double faced attitude from the first day. Our intimacy is limited to my ask she could agree or disagree but she never initiated it. She was pretty passionate before our breakup which I never saw after our marriage. I tried everything but nothing has happened she never opened up. She disconnected with almost all our mutual friends after marriage. Whenever I tried through some of her friends she says to them I overthink a lot. Marriages and relationships differs. All useless and weird reasons. Everyone blames my teenage short temper issue. Which I have completely overcame when I started working. After marriage we had a boy. She says no for a next child for which I am fine. But the problem is now my child is growing and she has started understanding her hypocrisy. Now she blames me for teaching him wrong things. We hardly had fights as she walks out or I won't say word usually after she didn't answer for anything. I am unable to see the light in this relationship. She had 3 relationships in between but I never had one which I never discussed. Now I hardly ask for anything. Day by day we are becoming only room partners or fake couples in public. Everyone sees her as an ideal daughter in law or wife due to her public hypocrisy. Please guide.
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For pharm D: Minimum qualification for admission to. – a) Pharm.D. Part-I Course – A pass in any of the following examinations - (1) 10+2 examination with Physics and Chemistry as compulsory subjects along with one of the following subjects: Mathematics or Biology. (2) A pass in D.Pharm course from an institution approved by the Pharmacy Council of India under section 12 of the Pharmacy Act. (3) Any other qualification approved by the Pharmacy Council of India as equivalent to any of the above examinations. Provided that a student should complete the age of 17 years on or before 31st December of the year of admission to the course.

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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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