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Ramalingam Kalirajan |7367 Answers |Ask -Follow

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

Question by Naresh on Mar 01, 2024Hindi

Hello Sir, I'm 35 years old and my monthly income is 30000. I'm married. My monthly expenses is around 23-26000. I want to make atleast 50lakhs by the time I reach 55. Kindly suggest which mutual fund I should go for?

Ans: It's commendable that you're planning for your financial future. Achieving a corpus of 50 lakhs by the time you reach 55 is a realistic goal with proper planning and disciplined investing. Given your income and expenses, investing in mutual funds can be an effective way to grow your wealth over the long term. Here's a suggested approach:
1. Start with SIPs: Since you have a monthly surplus after expenses, consider starting Systematic Investment Plans (SIPs) in mutual funds. SIPs allow you to invest a fixed amount regularly, enabling you to benefit from rupee cost averaging and the power of compounding.
2. Choose Equity Mutual Funds: Given your long-term investment horizon of 20 years, you can afford to invest predominantly in equity mutual funds, which have the potential to deliver higher returns over the long term compared to debt funds.
3. Diversify Your Portfolio: Opt for a diversified portfolio of equity mutual funds across different categories, such as large-cap, mid-cap, and multi-cap funds. Diversification helps spread risk and optimize returns. Choose funds with a proven track record of consistent performance and experienced fund managers.
4. Consider ELSS Funds: Equity Linked Savings Schemes (ELSS) offer the dual benefit of potential returns and tax savings under Section 80C of the Income Tax Act. Since you're aiming for long-term wealth creation, ELSS funds can be an excellent option to consider.
5. Regular Review: Monitor the performance of your mutual fund investments regularly and review your portfolio at least once a year. Make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.
6. Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized guidance tailored to your specific financial situation and goals. They can help you create a customized investment plan and navigate the mutual fund landscape effectively.
Remember, investing requires patience, discipline, and a long-term perspective. Stay focused on your goal of building a corpus of 50 lakhs by the time you reach 55, and with consistent investing and prudent decision-making, you can work towards achieving financial security and independence.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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