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

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 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 - May 13, 2024Hindi
Listen
Money

Hello, I am 40 years old and I would like retire at 60. I have mutual funds amounting to Rs 5 lakh, EPF of Rs 9 lakh and FD and RD of Rs 16 lakh. I earn Rs 18 lakh per annum. Where and how much should I invest to get Rs 2 lakh per month. Thank you

Ans: Assessing Your Financial Situation
You're in a commendable position with a good foundation for retirement planning. Let's delve into your assets and objectives.

Current Assets Evaluation
Kudos on your prudent savings strategy, which includes Mutual Funds, EPF, and FD/RD.
Your Mutual Funds and EPF indicate a balanced approach towards retirement planning.
Understanding Your Goals
Retiring at 60 is a realistic goal considering your current financial standing and income.
Your aim of Rs 2 lakh per month post-retirement reflects a comfortable lifestyle choice.
Crafting a Retirement Plan
Given your current assets and income, achieving Rs 2 lakh per month post-retirement requires strategic planning.

Investment Strategy Recommendations
Diversification is key. Allocate your investments across various asset classes.
Consider Equity Mutual Funds for long-term growth potential.
Debt Funds can provide stability and regular income, aligning with your retirement goal.
Systematic Investment Plans (SIPs) in Mutual Funds can help you capitalize on rupee-cost averaging.
Income Generation Plan
With Rs 5 lakh in Mutual Funds, you can aim for growth-oriented funds for capital appreciation.
EPF of Rs 9 lakh provides a secure foundation. Ensure it's aligned with your risk appetite.
Utilize Rs 16 lakh from FD/RD for Debt Funds to generate stable income.
Regular Monitoring and Review
Periodically review your portfolio's performance and adjust strategies accordingly.
Stay informed about market trends and economic indicators to make informed decisions.
Conclusion
Your disciplined savings approach and clear retirement goals lay a solid foundation for your future financial security. By adopting a diversified investment strategy and regularly monitoring your portfolio, you're well on your way to achieving your retirement aspirations.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 2024

Asked by Anonymous - Feb 16, 2024Hindi
Listen
Money
I m 44 years. Net salary 96K per month. Considering inflation . How much money should I invest..pls suggest different options MF is one of them, to get at least Rs. 1.25L per month income post retirement ?
Ans: To achieve a post-retirement income of Rs. 1.25 lakhs per month, it's essential to plan your investments strategically, considering factors such as your age, current salary, inflation, and risk tolerance. Here's a general approach you can consider:

1. **Calculate Retirement Corpus**: Determine the retirement corpus required to generate a monthly income of Rs. 1.25 lakhs. This will depend on various factors such as your expected lifespan, inflation rate, and expected rate of return on investments during retirement.

2. **Estimate Monthly Investment**: Based on your current age, desired retirement age, and expected rate of return on investments, calculate the monthly investment required to accumulate the retirement corpus. You can use online retirement calculators or consult with a financial advisor to determine this amount.

3. **Diversified Investment Portfolio**: Build a diversified investment portfolio that aligns with your risk tolerance and investment objectives. Consider allocating your investments across different asset classes such as equities, mutual funds, fixed deposits, real estate, and other suitable investment options.

4. **Systematic Investment Plan (SIP)**: Start a SIP in mutual funds that offer the potential for long-term growth while managing risk. Choose funds that invest in a mix of equity and debt instruments to balance risk and return. Regularly review and adjust your SIP contributions based on changes in your financial situation and investment goals.

5. **Tax Planning**: Optimize your tax planning to maximize your savings and investment returns. Utilize tax-saving investment options such as Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), National Pension System (NPS), and tax-saving fixed deposits to reduce your tax liability and increase your investible surplus.

6. **Regular Review and Adjustments**: Periodically review your investment portfolio and make necessary adjustments to ensure that you're on track to achieve your retirement income goal. Consider factors such as changes in income, expenses, market conditions, and life events when revising your investment strategy.

7. **Consider Professional Advice**: If you're unsure about the optimal investment strategy to achieve your retirement income target, consider seeking guidance from a qualified financial advisor. An advisor can help assess your financial situation, recommend suitable investment options, and develop a customized retirement plan tailored to your needs and objectives.

Remember that achieving a post-retirement income of Rs. 1.25 lakhs per month requires diligent planning, disciplined savings, and prudent investment decisions. Start early, stay focused on your goals, and regularly monitor your progress to ensure a financially secure retirement.

Best regards.

..Read more

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

Listen
Money
I m 42 years old and will retire at age of 58. I want 3 crore at my retirement. How much amount invest lumsum in mutual fund.
Ans: Planning for Retirement: Achieving a Rs 3 Crore Corpus
You are 42 years old and plan to retire at 58. To ensure you have Rs 3 crore at retirement, you need a well-structured investment strategy. Let’s explore how to achieve this goal by investing in mutual funds.

Understanding Your Investment Horizon
You have 16 years until retirement. This is a significant period, allowing your investments to benefit from compounding. Compounding is the process where the returns earned on your investments generate their own returns. Over time, this can lead to exponential growth.

Assessing Your Risk Tolerance
Before diving into the investment calculations, it's crucial to understand your risk tolerance. Given your age and retirement goal, a balanced approach combining growth and stability is recommended. Equities can offer higher returns, but they come with higher volatility. Debt instruments provide stability but with lower returns.

Benefits of Actively Managed Funds
Actively managed funds can be a good option for your investment. These funds are managed by professional fund managers who aim to outperform the market. Here are some benefits:

Professional Management: Expert fund managers make strategic decisions to maximize returns.
Flexibility: These funds can adjust their portfolio based on market conditions.
Potential for Higher Returns: They aim to outperform index funds, providing better returns over the long term.
Disadvantages of Direct Funds
Investing in direct funds means bypassing intermediaries, but it has drawbacks:

Lack of Professional Guidance: Direct funds require you to make investment decisions without expert advice.
Higher Responsibility: You need to monitor and adjust your investments regularly.
Potential for Mistakes: Without a Certified Financial Planner (CFP), you might miss opportunities or take unnecessary risks.
Investing through a Mutual Fund Distributor (MFD) with CFP credentials provides professional guidance, ensuring your investments are well-managed and aligned with your goals.

Calculating the Required Investment
To determine how much you need to invest in a lump sum, we must consider the expected rate of return. Historically, equity mutual funds in India have provided an average return of around 12-15% per annum. For this calculation, we will use a conservative estimate of 12%.

We need approximately Rs 50 Lacs to 60 Lacs as a lumpsum investment.

Importance of Diversification
Diversification is crucial for managing risk. While equity funds can provide higher returns, adding debt funds to your portfolio can offer stability. A balanced approach ensures you are not overly exposed to market volatility.

Regular Monitoring and Rebalancing
Investments need regular monitoring. Market conditions change, and your portfolio should adapt accordingly. Rebalancing involves adjusting your investment mix to maintain the desired level of risk and return. This ensures your portfolio remains aligned with your retirement goal.

Considering Tax Implications
Investing in mutual funds has tax implications. Long-term capital gains (LTCG) tax applies to equity funds after one year, while short-term capital gains (STCG) tax applies within a year. Understanding these tax rules helps in planning your withdrawals and maximizing your returns.

Emergency Fund and Insurance
Before making a lump sum investment, ensure you have an adequate emergency fund. This fund should cover at least six months of living expenses. Additionally, having sufficient life and health insurance is crucial to protect against unforeseen events.

Reviewing Investment Options
Evaluate different mutual fund schemes based on their past performance, fund manager expertise, and investment strategy. Look for funds with consistent returns and a track record of outperforming their benchmarks.

Seeking Professional Guidance
A Certified Financial Planner can provide personalized advice tailored to your financial goals and risk tolerance. They can help you choose the right mix of funds and ensure your investment strategy is robust and effective.

Benefits of Starting Now
Starting your investment now gives you a significant advantage. The power of compounding works best with time. The earlier you start, the more you benefit from exponential growth in your investments.

Conclusion
Achieving a Rs 3 crore corpus at retirement is a realistic goal with a disciplined investment approach. By investing a calculated lump sum in mutual funds, diversifying your portfolio, and seeking professional guidance, you can ensure a comfortable and financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  |597 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 27, 2024

Asked by Anonymous - Sep 27, 2024Hindi
Listen
Money
Sir i am 48 and work in a private firm. I want to know how much should i invest in mutual funds monthly and which mutual funds can i invest to save two crores at 60.
Ans: Hello;

You have two options:

Either make a flat monthly sip of 60 K for 12 years.
Or
Make a monthly sip of 50K with 5% top-up each year upto 12 years

Both options will yield you a corpus of 2 Cr as desired(modest return of 13% assumed).

Recommended mutual fund types with one example is given below:

1. Retirement mutual fund(Solution based funds)

These funds have a 5 year lock-in. I recommend HDFC Retirement Savings Fund Equity Plan(Growth).

2. Equity Linked Savings Scheme(ELSS) funds

If you invest in ELSS schemes, then you can avail tax exemption of the invested amount up to a limit of Rs. 150,000.

Theses funds have a 3 year lock-in.

They serve dual purpose of tax saving and capital appreciation. I recommend Mirae Asset ELSS tax saver fund(growth).

In case your 80C deduction limit is covered by other tax saving investments like EPF/PPF, insurance premia etc then you may consider the following type of fund.

3. Flexicap fund
Flexicap funds are equity funds that have the flexibility to invest in any market cap equities, i.e. large-cap, mid-cap, or small-cap shares, without any restriction. This means that the fund manager can change the allocation of the fund based on the market conditions, opportunities, and valuations.

I recommend you to invest in PPFAS flexicap fund (growth).

You may allocate 50:50 in any two of these fund types.

Recommended funds are based on their return performance in their category.

You may follow us on X at @mars_invest for updates.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

..Read more

Latest Questions
Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 07, 2024Hindi
Listen
Relationship
Hi Anu Mam Im 27 yrs old ( married) and 10 yrs old daughter. Im seperated from my husband since 2 yrs due to several reasons like he is drinking and Totally addicted to it. And he is totally dependent and now today also roaming on the roads of some streets of hyd. I belongs to an orthdox family. Now the question is one backward caste man who is married age : 33 he is interested in me and proposed me to a marriage after knowing all my past and saying that he accepts my child too. And the thing is he said a lie to me at first that he is unmarried and even though i had a good impression on him about the way he behaves with me he even treat me in a very polite manner. He says he loves me even though i too had a good impression but the things are the castes and can we both settle down with a marriage can we be happy or he is only trying to convince me to get him a wife to care care of him or only for his parents, he always talks about his own sister and also the office colleagues calls them sister and get emotional about them those who left the office. And he cries a lot which i dont trust on him and the face i see him that was not an real cry that looks like an act which i dont like in him. May he is acting ? Or really loving me, ge cares alot i feel like he is over reacting
Ans: Dear Anonymous,
If you are in doubt, then it's highly likely that he is putting on an act. Go with your intuition and hey hey, you said that he is married and so are you...You do realize that you just can't go ahead and marry while you are already to other people, right?
Focus on what's happening in your life; you obviously have to do something about it...Other relationships can wait!

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

Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 06, 2024Hindi
Listen
Relationship
Hello Ms Anu, I am a 42yr female..married since 14 yrs and have 10yr old son . I am highly qualified and financially independent. My marriage was a arranged one.. but in these 14 yrs.. I never experienced love or and attachment from my husband's side. He is a family man.. there is no other woman involved..He loves his parents and his two sisters immensely... but always treats me as a option. I feel humiliated and lonely and he has short temper when i talk about this issue... so basically I don't discuss... but that is no solution... I am suffering and unhappy. What should I do?
Ans: Dear Anonymous,
A few married men can be more focused on the women on their side of the family; it becomes easy to express love, care and attention to them as he has grown with them.
A wife happens to be someone that he is yet to understand. It requires effort to make a marriage work; your husband finds it convenient to take the easy way out and 'hang out' with his family.
So, here you take the lead and start. Start not by bringing forth your complaints as this is going to push him further to them which is going to annoy you BUT by inviting him to be with you. A lot of work, I get it...but the bottom line: that's what you want, right?
Plan dates evenings, take short vacations together, work-out together...the key is to establish a connection which never had its chance in the first place...So, give your best shot! Most times actions speak louder than words ever can...

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

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