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Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on May 11, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
Rahul Question by Rahul on May 04, 2023Hindi
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Hello Hardik Ji, I am 52 year with a monthly income of around 75K-80K. I want to start the MUTUAL FUNDS / SIP investments for my retirement & my children Future who are in their twenties. Right now I am putting regular money in BANKS RD's / FD's only. Kindly advise / suggest how can i go ahead. Thanks & Regards, RV

Ans: Hello Rahul Ji,

I appreciate that you are thinking about your retirement and your children's future. As a financial advisor, I would be happy to help you start investing in mutual funds and SIPs. Before diving into specific suggestions, let's first understand your financial goals and risk appetite.

Given your age and monthly income, you should aim to diversify your investments for long-term wealth creation and financial stability. While RDs and FDs offer low risk and guaranteed returns, they may not be sufficient for higher returns and beating inflation in the long run. Mutual funds and SIPs can help you achieve better returns, provided you make well-informed decisions and stay invested for a long period.

Here are some steps to help you get started:

Define your goals: Identify the specific financial goals you want to achieve through your investments, such as your retirement corpus and your children's higher education or marriage expenses.
Assess your risk appetite: Determine your willingness and ability to take risks in your investments. As you have been investing in FDs and RDs, it seems that you prefer low-risk options. However, considering your age and goals, you may want to include some moderate to high-risk investments in your portfolio for better returns.
Diversify your portfolio: Invest in a mix of equity, debt, and hybrid mutual funds to spread the risk and optimize returns. You can consider investing in large-cap, mid-cap, and small-cap funds, balanced funds, and debt funds based on your risk appetite and goals.
Start with SIPs: Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in a mutual fund, which helps in inculcating a disciplined savings habit and averaging out market volatility.
Consult a financial advisor: For personalized advice, you may want to consult a professional financial advisor who can help you select the right funds and create a tailored investment plan based on your goals, risk appetite, and investment horizon.
Remember, mutual fund investments are subject to market risks, and it's essential to stay informed and monitor your investments periodically. I hope this helps you get started on your journey to financial planning for your retirement and children's future.

Wishing you all the best, Rahul Ji!

Warm Regards,
Hardik
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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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jun 15, 2023

Asked by Anonymous - Jun 11, 2023Hindi
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Hi All, My age is 34 years. I need to start with mutual funds SIP having moderate to high risk returns. Monthly SIP planning is 30000 for next 5 years. Can you please let me know how to invest ?
Ans: Yes, Investing in mutual funds through a SIP mode is a good way to start building wealth over the long term. Here's a step-by-step guide on how to invest in mutual funds SIP:

1. Identify Financial Goals: Before investing, determine your financial goals and the time horizon for each goal. This will help you choose the right mutual funds that align with your objectives.

2. Determine Risk Tolerance: Since you mentioned you are looking for moderate to high-risk returns, it's important to assess your risk tolerance. Higher-risk funds have the potential for higher returns but also come with increased volatility.

3. Selection of Mutual Funds: Based on your risk profile and financial goals, select mutual funds that match your investment criteria. The selection should be based on risk and reward factor of the particular mutual fund or you can consult with financial advisor if you feel unsure about making investment decisions.

4. Investment Platform: There are various platforms available on which you can start your investments after completion of KYC. You'll need to provide identity proof, address proof, and other relevant documents as per the guidelines of the platform. This is a one-time process and ensures regulatory compliance. Then, you can start your investments in the selected mutual funds.

5. Monitor and Review: Regularly review the performance of your mutual funds to ensure they are meeting your expectations. However, avoid making impulsive decisions based on short-term fluctuations in the market. Stay focused on your long-term investment objectives.

Remember, investing in mutual funds carries some degree of risk. It's important to understand the risks and potential returns associated with each fund before investing. Also, consider diversifying your investments across multiple funds to mitigate risk.

Disclaimer:
• I have just no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down.
• Hence, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.
• I recommend you to also consult a good financial advisor who would look at your complete profile in totality before you act on this advice given by me.

..Read more

Ramalingam

Ramalingam Kalirajan  |9383 Answers  |Ask -

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

Asked by Anonymous - Jul 04, 2024Hindi
Money
Hello... I am 36 year old female working in a public sector bank. I am planning to come of out my present job after 4 years. I am interested in starting investment in mutual funds. I already have 12 lakhs in sip, 14 lakhs in fd and 4 in savings account Kindly guide me in doing further investments in mutual funds
Ans: Mutual funds are a popular investment option. They pool money from many investors. This money is then invested in stocks, bonds, or other securities. Professional fund managers manage these investments. Mutual funds offer diversification, which reduces risk. They are a good choice for long-term financial goals.

Your Current Financial Situation
You have Rs. 12 lakhs in SIPs, Rs. 14 lakhs in FDs, and Rs. 4 lakhs in a savings account. This is a solid start. It shows your commitment to saving and investing. You are on the right track. However, diversifying your investments is important.

Benefits of Mutual Funds
Mutual funds offer several advantages:

Diversification: They spread your money across various investments. This reduces the risk of loss.

Professional Management: Experts handle the investments. They make informed decisions based on market research.

Liquidity: You can easily buy or sell mutual fund units. This offers flexibility in managing your finances.

Variety: There are different types of mutual funds. You can choose based on your risk appetite and financial goals.

Types of Mutual Funds
Mutual funds come in different categories. Each category has its own risk and return characteristics.

Equity Funds
Equity funds invest in stocks. They have higher potential returns but also higher risk. They are suitable for long-term goals. These funds are ideal for a horizon of 5 years or more.

Debt Funds
Debt funds invest in fixed-income securities. These include bonds and treasury bills. They are less risky compared to equity funds. They provide regular income and are suitable for short to medium-term goals.

Hybrid Funds
Hybrid funds invest in both stocks and bonds. They offer a balanced approach. They provide moderate returns with moderate risk. These funds are good for investors seeking a mix of growth and income.

Setting Your Financial Goals
Identify your financial goals before investing. This helps in choosing the right mutual funds. Your goals can be:

Retirement: Build a corpus for a comfortable retirement. Equity and hybrid funds are suitable.

Child's Education: Save for your child's education. Equity funds are a good choice for long-term goals.

Emergency Fund: Maintain an emergency fund. Debt funds or liquid funds are ideal for this purpose.

Asset Allocation
Asset allocation is crucial. It involves dividing your investments among different asset classes. This strategy reduces risk and maximizes returns. Your asset allocation should be based on your risk tolerance and investment horizon.

Risk Tolerance
Understand your risk tolerance. It is your ability to handle market fluctuations. If you have a high-risk tolerance, you can invest more in equity funds. If you prefer stability, opt for debt funds.

Investment Horizon
Your investment horizon is the duration you plan to stay invested. For long-term goals, equity funds are suitable. For short-term goals, debt funds are better.

Systematic Investment Plan (SIP)
SIP is a disciplined way of investing. It involves investing a fixed amount regularly. This can be monthly, quarterly, or annually. SIP helps in averaging the cost of investment. It reduces the impact of market volatility.

Systematic Withdrawal Plan (SWP)
SWP allows you to withdraw a fixed amount regularly. This is useful for generating regular income. It is suitable for retirees or those needing regular cash flow.

Avoiding Common Mistakes
Avoid common mistakes while investing in mutual funds:

Chasing Past Performance: Do not invest based on past performance. It does not guarantee future returns.

Ignoring Expenses: Be aware of the expenses involved. These include expense ratio and exit load.

Lack of Diversification: Do not put all your money in one fund. Diversify across different types of funds.

Monitoring Your Investments
Regularly monitor your investments. Review their performance periodically. This helps in making necessary adjustments. It ensures that your investments align with your goals.

Rebalancing Your Portfolio
Rebalance your portfolio periodically. This involves realigning the asset allocation. It helps in maintaining the desired level of risk.

Consulting a Certified Financial Planner
Seek guidance from a Certified Financial Planner. They can provide personalized advice. They help in creating a comprehensive financial plan. Their expertise ensures that your investments align with your goals.

Tax Implications
Understand the tax implications of mutual fund investments. Equity funds are subject to capital gains tax. Long-term capital gains (LTCG) tax is applicable after one year. It is 10% on gains exceeding Rs. 1 lakh. Short-term capital gains (STCG) tax is 15%. Debt funds have different tax rules. LTCG is applicable after three years at 20% with indexation. STCG is taxed as per your income slab.

Advantages of Actively Managed Funds
Actively managed funds have professional managers. They aim to outperform the market. They adjust the portfolio based on market conditions. This can lead to higher returns compared to passive funds.

Disadvantages of Index Funds
Index funds track a specific index. They do not aim to outperform the market. Their returns are tied to the index performance. They lack flexibility in changing market conditions. Actively managed funds can provide better returns with expert management.

Benefits of Regular Funds
Investing through regular funds offers benefits. Certified Financial Planners can guide you. They provide valuable insights and advice. They help in selecting the right funds. They assist in creating a balanced portfolio.

Evaluating Fund Performance
Evaluate the performance of mutual funds before investing. Look at the historical returns. Check the consistency of returns. Compare the fund's performance with its benchmark. Analyze the fund manager's track record.

Expense Ratio
The expense ratio is the annual fee charged by the fund. It covers the management and administrative costs. A lower expense ratio is preferable. It affects the overall returns on your investment.

Exit Load
Exit load is a fee charged on early withdrawal. It is a percentage of the redeemed amount. Be aware of the exit load before investing. It impacts the returns if you withdraw before the specified period.

Portfolio Diversification
Diversify your portfolio across different sectors and asset classes. This reduces the impact of poor performance in one sector. It helps in achieving a balanced risk-return profile.

Risk Management
Effective risk management is essential. Diversification and asset allocation are key strategies. Regularly review and rebalance your portfolio. Stay informed about market trends and economic conditions.

Market Volatility
Be prepared for market volatility. The market can be unpredictable. Do not panic during market downturns. Stay focused on your long-term goals. SIPs help in averaging the cost during volatile markets.

Financial Discipline
Maintain financial discipline. Stick to your investment plan. Avoid making impulsive decisions based on market movements. Regularly invest through SIPs to stay disciplined.

Emergency Fund
Keep an emergency fund separate. It should cover at least six months of expenses. Use debt funds or liquid funds for this purpose. It ensures liquidity and safety of funds.

Financial Goals Review
Review your financial goals periodically. Life circumstances can change. Your goals may evolve. Adjust your investment strategy accordingly. Ensure that your investments align with your current goals.

Long-Term Perspective
Have a long-term perspective. Mutual funds are best for long-term wealth creation. Do not focus on short-term market fluctuations. Stay invested to benefit from compounding returns.

Financial Literacy
Enhance your financial literacy. Understand the basics of mutual fund investing. Stay informed about market trends and economic factors. This helps in making informed investment decisions.

Benefits of SIP
SIP offers several benefits:

Disciplined Investing: It encourages regular investing.

Rupee Cost Averaging: It averages the cost of investment over time.

Compounding: It helps in compounding returns over the long term.

Financial Advisor vs. Certified Financial Planner
Certified Financial Planners have specialized training. They provide comprehensive financial planning. They offer personalized advice based on your financial situation. They help in achieving your financial goals.

Final Insights
Mutual fund investments are a powerful tool for wealth creation. They offer diversification, professional management, and flexibility. Understand your financial goals and risk tolerance. Choose the right type of mutual funds. Regularly monitor and review your investments. Stay disciplined and focused on your long-term goals. Seek guidance from a Certified Financial Planner. They can help you navigate the complexities of mutual fund investing.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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Latest Questions
Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Nayagam P

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Career
Which is better NMIT EEE or Chanakya university CSE
Ans: Veena, NMIT Bengaluru’s Electrical & Electronics Engineering is NBA Tier-1 and NAAC A+ accredited with a 60-seat intake, led by PhD-qualified faculty in power systems, power electronics, and smart grid, supported by a Centre of Excellence in Power Engineering featuring EPLAN, ETAP, Mi-Power, FPGA and DSP labs. The department organizes regular industrial visits and expert lectures. EEE placements over the last three years average around 67% (2024: 67.44%) with core recruiters in EV, automation, and power sectors. Chanakya University’s CSE, a private AICTE- and UGC-approved program on a developing 116-acre campus, blends an interdisciplinary curriculum with digital classrooms, basic computing and software labs, and mandatory internships. Recognized by the Government of Karnataka, its placement cell is nascent, with overall university placements reported at approximately 85% in 2022, involving core IT recruiters such as Infosys, Wipro, and TCS. Faculty are industry-seasoned but the CSE stream is in early growth, with industry partnerships and research initiatives gradually evolving.

Recommendation: For assured core-sector engineering roles and robust specialized labs, prefer NMIT Bengaluru EEE. For broader software and tech opportunities in a growing CSE program with flexible interdisciplinary training and higher initial placement rates, recommendation is Chanakya University CSE. Choose NMIT EEE for stability in power engineering; opt for Chanakya CSE for early software exposure in a private-university environment. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Career
Sir my son got 93.59 percentile in mht cet and his jee score is 73.42 percentile. His choice in cse , data science, robotic science, cyber security, and last is E&TC branch. I m from Maharashtra and belong SBC category so suggest best college in Pune or mumbai city
Ans: With a 93.59 percentile in MHT-CET under the SBC quota, your son can aim for the following ten reputable colleges and branches in Mumbai and Pune, based on 2024 closing percentiles and institutional reputation: COEP Pune (CSE/E&TC)¹, VJTI Mumbai (CSE/IT)?, PICT Pune (CSE/Data Science)?, SPIT Mumbai (ECE/Cyber Security)?, VIT Pune (CSE-AI & ML)?, VIIT Pune (IT/Data Science)?, Pimpri?Chinchwad COE Pune (CSE/AI-ML)??, TCET Mumbai (CSE/Cyber Security)?, GHRCEM Pune (CSE/AI/DS/Cyber Security)?, and AISSMS Pune (CSE/IT/E&TC)?. All institutions hold NBA/NAAC accreditation, boast PhD-qualified faculty, modern labs, active industry tie-ups, and placement rates of 80–95% over the last three years.

recommendation:
Prioritise COEP Pune CSE for its premier NIRF ranking and 99%+ placements, then VJTI Mumbai CSE for strong industry links, and PICT Pune CSE/Data Science for balanced cutoffs and robust labs. Use SPIT Mumbai Cyber Security and VIT Pune CSE-AI & ML as competitive options, and consider VIIT Pune, PCCOE Pune, TCET Mumbai, GHRCEM Pune, and AISSMS Pune as reliable backups. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Career
Hi Sir, My daughter has got admission in below- VIT Vellore- CSE with AI ML Manipal Jaipur - CSE ( specialisation to be added later) Narsee Monjee, Mumbai.- ECE Can you please help advise the priority in which we should consider these colleges
Ans: VIT Vellore’s CSE-AI & ML program, an A++ NAAC-accredited private deemed university, integrates AI, ML, and data science labs with a strong placement ecosystem; it recorded 632 recruiters, 10 027 offers, and an 80–95% placement rate over the past three years, with marquee recruiters like Microsoft, Amazon, and Cisco. Manipal University Jaipur’s B.Tech CSE, A+ NAAC-accredited and ranked #64 in NIRF 2024 for engineering, offers smart classrooms, HPC clusters, and industry-aligned curriculum, achieving an 88% CSE placement rate with 75% securing internships, median packages of ?8 LPA, and top recruiters such as Amazon and Deloitte. Narsee Monjee College of Commerce & Economics in Mumbai (autonomous, NAAC A, affiliated to University of Mumbai) offers ECE under modern DSP and VLSI labs, a supportive placement cell, and approximately 80% of its engineering graduates placed over the last three years with core recruiters in electronics and telecom; students benefit from strong peer networks and urban industry proximity. All three institutes feature PhD-qualified faculty, NBA accreditation for technical departments, active industry tie-ups, and modern research facilities, but vary in placement consistency, research depth, and brand recognition.

Recommendation: Prioritise VIT Vellore CSE (AI & ML) for its superior placement consistency (80–95%), extensive recruiter network, and cutting-edge AI labs. Next, choose Manipal Jaipur CSE for its strong NIRF ranking (#64), 88% placement rate, and robust internship pipeline. Finally, consider Narsee Monjee Mumbai ECE for its specialized ECE infrastructure and urban industry exposure if electronics and VLSI are the primary interest. (However, If you are based in Maharashtra, Better to Finalise Narsee Monjee-Mumbai-EC for your DAUGHTER). All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7800 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 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.

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