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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Jul 07, 2024

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Prateek Question by Prateek on Jul 05, 2024Hindi
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Hello Sir, I am 34 years old and with 10 years in mind for investment to reach 1CR, I have planned to invest 30K monthly in SIP with stepping up by 10-12% every year. I am already investing the below amounts in MF schemes 5K - Parag Parikh Flexi Cap, 5K - Motilal Oswal Mid Cap, 5K - Nippon India Small Cap, 5K - HDFC Balance Advantage Fund. I am a bit confused for the remaining 10K i.e., where to invest. Shall I increase the already invest amount in MF or shall take 1-2 more MFs scheme like Multi-Cap/Large Cap/another Flexi Cap OR any hybrid MF schemes Would taking 1-2 more MF scheme will overdiversify the portfolio? Can you please suggest some pointers on this.

Ans: Hello Prateek & thanks for writing to me. Assuming that you are able to generate an XIRR of 12%, you will be able to create a corpus of Rs.1 Crore in around 10 years.

As your time horizon is 10 years, I recommend you invest only in equity schemes which can potentially generate higher returns than hybrid schemes like a balanced advantage fund or dynamic asset allocation fund.

You can consider investing equally in:

1.Small Cap Scheme
2.Mid Cap Scheme
3.Flexi Cap Scheme
4. Multi Cap Scheme

Your 5th scheme can be a thematic scheme like a momentum fund or a special opportunities fund or a broader category like a special opportunities fund.

You can consider investing solely in equity schemes for the first 7 to 8 years and then change the asset allocation to have a mix of hybrid schemes like BAF/DAAF's, Multi Asset Funds and aggressive hybrid funds in the last 2-3 years of your 10 year horizon.
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  |7322 Answers  |Ask -

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

Asked by Anonymous - Apr 07, 2024Hindi
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Hello, I am 32 years old and would like to start SIP for 5k per month to create retirement corpus of 1 crore. Also would like to generate 30 lacs in another 10 years for closing housing loan. Already have three MF SIP as below. Quant active fund 1000 Quant ELSS tax saver fund 500 ICICI prudential corporate bond fund 150 Kindly suggest in which MF should I invest further and also how much should I increase the SIP amount to achieve the above goals. Thank you.
Ans: Building Your Retirement Corpus and Closing Your Home Loan: A Two-Pronged Approach
Starting an SIP at 32 is a great decision! Let's analyze your current situation and suggest ways to achieve your goals:

Current SIPs:

Diversification: Your existing SIPs cover some diversification with a large-cap fund (Quant Active), tax-saving (Quant ELSS), and a debt fund (ICICI Prudential Corporate Bond).

Goal Alignment: Review if your existing SIP allocations are aligned with your goals. Consider increasing the debt fund SIP for your short-term goal (closing home loan).

Reaching Your Goals:

Retirement Corpus: Creating a ?1 crore corpus in a specific timeframe requires considering factors like investment horizon, risk tolerance, and expected returns. A CFP can help with calculations based on realistic assumptions.

Home Loan Closure: Generating ?30 lacs in 10 years is achievable with a focused approach. Debt funds and balanced funds can be suitable options, offering stability and some growth potential.

SIP Allocation and Increase:

Debt SIP Increase: Consider increasing your SIP in ICICI Prudential Corporate Bond Fund (or a similar debt fund) to accelerate your home loan closure.

New SIP for Retirement: Start a new SIP for retirement, focusing on equity funds with a longer investment horizon. Actively managed equity funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Risk Tolerance: Choose a mix of equity funds (large-cap, mid-cap) based on your risk tolerance. A CFP can help you determine the ideal asset allocation.

Professional Guidance:

Personalized Plan: A Certified Financial Planner (CFP) can create a detailed SIP plan considering your risk tolerance, financial goals, and existing investments. They can recommend specific debt and equity funds based on your needs and suggest appropriate SIP amounts for each goal.
Remember:

Regular Review: Review your SIPs (at least annually) to ensure they remain aligned with your evolving goals and risk tolerance.

Market Fluctuations: Equity markets are volatile. Stay invested for the long term to ride out market ups and downs.

By taking action now, diversifying your SIPs, and potentially seeking professional guidance, you can work towards achieving your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7322 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

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Hello Sir, I am 34 years old and with 10 years in mind for investment to reach 10CR, I have planned to invest 2 lakh monthly in SIP with stepping up by 10 % every year. I have already invested 15 lakhs in Mutual fund th. SIP, 15 lakhs in shares and 20 lakhs in PPF. and .Shall I increase the already invest amount in MF or shall take 1-2 more MFs scheme like Multi-Cap/Large Cap/another Flexi Cap OR any hybrid MF schemes Would taking 1-2 more MF scheme will overdiversify the portfolio? Can you please suggest some pointers on this.
Ans: Current Investment Analysis
You have invested Rs. 15 lakhs in SIPs, Rs. 15 lakhs in shares, and Rs. 20 lakhs in PPF. Your plan to invest Rs. 2 lakhs monthly with a 10% yearly step-up is commendable.

Assessing Diversification
Adding 1-2 more mutual funds could be beneficial. However, ensure they align with your financial goals and risk tolerance.

Multi-Cap Funds
Multi-cap funds offer exposure across market capitalizations. They balance risk and reward effectively.

Large-Cap Funds
Large-cap funds invest in established companies. They provide stability and steady returns.

Flexi-Cap Funds
Flexi-cap funds have flexibility to invest in any market cap. They adapt to market conditions, optimizing returns.

Avoiding Over-Diversification
Too many funds can dilute returns. Stick to a manageable number, focusing on quality and performance.

Investment Strategy
Step-Up SIP
Continue with your step-up SIP strategy. It will enhance your investment corpus significantly over 10 years.

Hybrid Funds
Consider hybrid funds for balanced risk. They invest in both equity and debt, providing stability and growth.

Final Insights
Evaluate your current funds. Add 1-2 more aligned with your goals. Avoid over-diversification by focusing on quality. Your step-up SIP strategy is excellent for reaching your Rs. 10 crore goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Ashish

Dr Ashish Sehgal  |115 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 23, 2024

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Sir as I previously take your view about my situation...sir you tell that in love understanding between partner is important.but sir my partner doesn't want to talk with me.I just never think that he will give up so easily.
Ans: It’s interesting, isn’t it, how relationships often mirror the patterns of communication we create within them? When one partner feels distant or unwilling to talk, it’s less about them giving up and more about a shift in the way they’ve been feeling understood—or misunderstood.

You see, communication isn’t just about words; it’s about emotions, intentions, and the unspoken messages we convey. If your partner isn’t talking, perhaps they’re saying something without words. And that’s where curiosity becomes your ally.

Instead of focusing on the silence, what if you shifted your attention to understanding what that silence represents? Maybe it’s disappointment, frustration, or even fear. But the key is, you can’t solve what you assume—it’s about discovering what’s really there.

And let me ask you this: if you were to step into their shoes for a moment—just imagine being them—what might they feel? What might they need to hear from you, or perhaps sense from your presence, that could bring a spark of connection back into the conversation?

Love is rarely about giving up. It’s about learning to communicate in a way that feels safe and understood. And if you’re willing to stay open, willing to listen to the quiet messages, you may find a new way forward—one step at a time.

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Ramalingam

Ramalingam Kalirajan  |7322 Answers  |Ask -

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

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Hi Mr. Ramalingam, Can I check New Asset class (Specialized Investment Fund SIF) for 10 lakhs investment for my kids education(Right now 4months old). Thank you for your response.
Ans: Investing Rs 10 lakhs for your child’s education is a thoughtful decision.

Your child is 4 months old, so you have a long investment horizon.

Currently, SIF is not yet launched or operational.

Equity Mutual Funds: A Reliable Option
Equity mutual funds are proven for long-term goals like education.

They offer inflation-beating growth over a 15-18 year period.

Start investing now to benefit from compounding.

Choose funds with a consistent track record.

Wait and Observe SIF Performance
SIF is a new asset class and lacks a performance track record.

It’s wise to wait for its launch and review its stability.

Assess the fund's returns, risk profile, and management quality.

Investing in an untested asset could increase risks unnecessarily.

Diversify Investments Over Time
Initially, focus on equity mutual funds for growth.

Later, as SIF stabilises and performs well, consider it.

Diversify across asset classes gradually based on market insights.

Final Insights
Begin with equity mutual funds for your child’s education fund.

Monitor SIF's launch and performance over the next few years.

Decide on SIF only after it demonstrates a solid track record.

Keep your investments aligned with your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Milind

Milind Vadjikar  |790 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Dec 23, 2024

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I& my wife is 32. What would our ideally retirement corps. I assume 20Cr. Correct me if I'm wrong. My current saving & income are below - 1) Rs 2,40,000 take home per month combined. 2) We both have PPF for the last 7 years contributing 1.5L each year from starting and plans to continue till 60. 3) LIC will give us 2Cr when we hit 60. 4) NPS we contribute 1L per each year form 2022 combined plans continue till 60. 5) Mutual Fund of SIP Rs 10,000 each month for last 1 year combined plans continue till 60. 6) APY we will get 5000 per month at 60. 7) FDs of Rs 36Lakh 8) Gold of Rs 15Lakh bonds 9) Got Inherited Rs 1.6Cr in form of FDs 10) Have Medeclaim of 40Lakhs and have own house. 11) Monthly expenses is around 40,000. 12) Have 1 year old Kid. 13) Have PF of 8 lakhs and will grow till 60. Also taking Gratuity in account.
Ans: Hello;

Your current monthly income need of 2.4 L will grow up to 12.27 L after 28 years (At your retirement age of 60) considering 6% inflation.

Assuming your expenses at retirement will reduce so you may need 75% of this income to cover your expenses at that time therefore you may need a monthly income of 9.2 L.

To generate this income you may need a corpus of 27 Cr(Min.) at the age 60 that may generate post-tax monthly income of around 9.2 L.

Your investments will grow as follows,

1. PPF: 1.5 L per person per year for 35 years will grow into a corpus of around 4.32 Cr. (6.9% return assumed)

2. LIC: policy maturity proceeds will provide 2 Cr at age 60.

3. NPS: 1 L per person per year may grow into a sum of 2.5 Cr at 60.(8% return considered)

4. MF sip of 10 K may grow into a sum of 2.05 Cr at 60. (10% return considered)

5. FD of 36 L will grow into a sum of 2.1 Cr if held till 60. (6.5% return assumed)

6. Gold in form of bonds if reinvested into gold mutual funds and held till 60 may yield a corpus of around 1.1 Cr. (7% return assumed)

7. Inherited funds if held in FD till the age of 60 may yield a corpus of 9.9 Cr.
(6.5% return considered)

8. EPF is expected to grow into a sum of around 1.8 Cr at the age of 60.(7% return considered)

A summation of investment values at 60 indicates a sum of around 25.77 Cr thereby hinting at a gap of around 1.23 Cr.

You may begin another monthly sip of 7 K now which may grow into a sum of around 1.3 Cr by 60 age.(10% return assumed)

If the mediclaim policy is from employer, do buy a personal health care cover after 50-55 for your family for post retirement needs.

I presume you both have adequate term life insurance cover apart from LIC policy.

The financial goal for your kid's education and family expansion, if any, is not factored here. You may need to plan for it suitably.

Also it appears that your allocation to equity is quite low, may be due to limited risk appetite but you have time on your side and although short to medium term(5-7 yr) equity asset class may be impacted due to volatility but over a long-term(10 yr+) they have demonstrated good inflation adjusted returns so may be you may consider to increase allocation through hybrid funds suiting your risk appetite.

Happy Investing;
X: @mars_invest

...Read more

Ramalingam

Ramalingam Kalirajan  |7322 Answers  |Ask -

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

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Meri family ki income 80 lakhs hai yearly aur 40 lakhs expense hai aur age meri 48 hai capital family ki 4 cr hai to unko kaise manage aur kaha invest kare
Ans: Current Financial Snapshot
Annual Income: Rs 80 lakhs
Annual Expenses: Rs 40 lakhs
Capital Available: Rs 4 crores
Age: 48 years
Your income and existing capital provide a strong foundation. With proper planning, you can secure your financial future and achieve your goals.

Key Financial Goals
Retirement Planning: Build a corpus to sustain your post-retirement lifestyle.
Wealth Growth: Invest capital for inflation-beating returns.
Risk Management: Ensure adequate insurance coverage for family security.
Tax Efficiency: Optimise investments to reduce tax liabilities.
Suggested Investment Allocation
1. Emergency Fund
Maintain 6-12 months of expenses (Rs 20-40 lakhs) in liquid funds or a high-interest savings account.
This ensures liquidity for any unforeseen circumstances.
2. Equity Mutual Funds
Allocate 50-60% of your capital (around Rs 2-2.4 crores) to equity mutual funds.
Use diversified funds like large-cap, flexi-cap, and mid-cap funds for growth.
Avoid index funds due to lack of flexibility and active management.
Invest monthly through systematic investment plans (SIPs) for disciplined investing.
3. Debt Investments
Invest 20-25% of your capital (Rs 80 lakhs-1 crore) in debt mutual funds or fixed-income instruments.
Choose funds with low risk to ensure stability and predictable returns.
These funds act as a safety net during market downturns.
4. Children’s Education or Marriage
Allocate funds for long-term goals like education or marriage.
Invest in balanced advantage funds or equity mutual funds for higher returns.
5. Retirement Planning
At 48, focus on building a retirement corpus.
Allocate 20% of your capital (Rs 80 lakhs) to retirement-specific investments.
Use a mix of equity and debt for growth and safety.
Risk Management
Life Insurance
Ensure you have a term insurance cover of at least Rs 2-3 crore.
This protects your family’s financial future in your absence.
Health Insurance
Take a family floater health insurance plan of Rs 25-30 lakh.
Include critical illness coverage to address rising healthcare costs.
Tax Efficiency
Maximise Section 80C benefits by investing in ELSS mutual funds or PPF.
Use NPS for additional tax deductions under Section 80CCD.
Invest in tax-efficient instruments to reduce liabilities.
Regular Monitoring
Review your investments every six months with a Certified Financial Planner.
Rebalance your portfolio to align with market trends and life changes.
Final Insights
You have a strong financial base with high income and significant capital.

With disciplined investing, risk management, and tax efficiency, you can grow your wealth and achieve your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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