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Ramalingam

Ramalingam Kalirajan  |8005 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 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
Gowri Question by Gowri on Jun 15, 2024Hindi
Money

Hello sir, I’m a house wife in my 40’s. Now that my daughter is getting settled with her college, I would like get to try my hands on stock or mutual funds or anything that suits me best, but I’m complete layman in this. Kindly advise how do I go about it.

Ans: I hope you're doing well! It's fantastic that you're considering investing now that your daughter is getting settled in college. Let's walk through the basics and help you understand how to get started with stocks or mutual funds.

Understanding Your Financial Situation
You're in your 40s and have some time to build and grow your investments. Starting now can give you the benefit of compounding over the years.

Setting Financial Goals
Before we jump into investments, it's important to set clear financial goals. Here are some common goals you might consider:

Retirement Planning: Ensuring you have a comfortable and secure retirement.

Emergency Fund: Setting aside funds for unexpected expenses.

Wealth Creation: Growing your wealth for future needs or desires.

Basics of Stocks and Mutual Funds
Stocks
Stocks represent ownership in a company. When you buy stocks, you become a part-owner of that company.

Advantages:

High Returns: Stocks can offer higher returns compared to other investments over the long term.
Dividend Income: Some companies pay dividends, providing regular income.
Risks:

Market Volatility: Stock prices can fluctuate significantly in the short term.
Company Performance: Your investment is tied to the company's performance.
Mutual Funds
Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

Advantages:

Diversification: Reduces risk by spreading investments across various assets.
Professional Management: Managed by experienced fund managers.
Risks:

Management Fees: Actively managed funds charge fees which can impact returns.
Market Risk: Mutual funds are subject to market risks, though diversified.
Getting Started with Mutual Funds
Given your newness to investing, mutual funds might be a more suitable starting point. They offer diversification and professional management, which can be beneficial if you're not familiar with individual stock picking.

Types of Mutual Funds
Equity Mutual Funds: Invest primarily in stocks. Suitable for long-term goals.

Debt Mutual Funds: Invest in bonds and other fixed-income securities. Suitable for stability and regular income.

Hybrid Funds: Combine equity and debt investments for balanced risk and return.

Actively Managed Funds vs. Index Funds
You might hear about index funds, which track a specific market index. While they have lower fees, they simply mirror the market's performance. Actively managed funds, on the other hand, aim to outperform the market through strategic investments.

Disadvantages of Index Funds:

Limited Performance: They can't outperform the market.
Market Dependency: They are entirely dependent on the market's performance.
Benefits of Actively Managed Funds:

Professional Expertise: Fund managers actively make decisions to beat the market.
Adaptability: These funds can adjust to market conditions.
Benefits of Regular Funds Through an MFD with CFP Credential
Investing through a Mutual Fund Distributor (MFD) who is also a Certified Financial Planner (CFP) provides several advantages:

Personalized Advice: Tailored investment strategies based on your goals and risk tolerance.

Professional Management: Regular funds managed by professionals adapt better to market changes.

Continuous Monitoring: Ongoing support and portfolio adjustments ensure alignment with your goals.

How to Start Investing in Mutual Funds
Step 1: Define Your Investment Goals
Identify what you want to achieve with your investments. It could be retirement, building an emergency fund, or wealth creation.

Step 2: Assess Your Risk Tolerance
Understand how much risk you're comfortable taking. This will help determine the type of funds suitable for you.

Step 3: Choose the Right Funds
Based on your goals and risk tolerance, select a mix of equity, debt, and hybrid funds. Diversification helps manage risk.

Step 4: Start Small
Begin with a manageable amount. As you become more comfortable, you can increase your investment.

Step 5: Regular Investments
Set up a Systematic Investment Plan (SIP) to invest a fixed amount regularly. This helps in disciplined investing and takes advantage of market fluctuations.

Tax-Saving Investments Under Section 80C
Mutual funds also offer tax-saving options. Equity Linked Savings Scheme (ELSS) funds provide tax benefits under Section 80C.

Advantages of ELSS:

Tax Benefits: Investments up to Rs 1.5 lakhs are eligible for tax deductions.
Short Lock-in Period: ELSS funds have a 3-year lock-in period, the shortest among tax-saving options.
Potential for High Returns: Being equity-based, they offer higher returns over the long term.
Retirement Planning
Given your current age, you have ample time to build a substantial retirement corpus. Here's how you can plan:

Consistent SIPs: Invest regularly in a mix of equity and debt funds.

Increase Contributions: As your understanding and comfort with investments grow, increase your SIP amounts.

Review and Rebalance: Regularly review your portfolio and make necessary adjustments to stay aligned with your goals.

Genuine Compliments
It's wonderful that you're taking the initiative to learn about investing. Your proactive approach is commendable and will surely pay off in the long run.

Empathy and Understanding
I understand that starting something new can be daunting, especially with financial investments. But your willingness to learn and grow is a great step forward.

Final Insights
Starting with mutual funds is a prudent choice given your novice status in investing. Diversifying your portfolio across equity, debt, and hybrid funds can help manage risk while aiming for growth. Actively managed funds, with the expertise of professional fund managers, can potentially offer better returns than index funds.

Consulting with a Certified Financial Planner (CFP) ensures you receive personalized and professional advice. Regularly investing through SIPs, setting clear financial goals, and reviewing your portfolio periodically are key steps to achieving your financial aspirations.

Your proactive approach and willingness to learn about investments will undoubtedly help you build a secure and prosperous financial future.

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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I'm 48 year old and a housewife. My husband is 52 and working in a restaurant with a salary of 24k p.m. I'm looking into investing with whatever remains out of this salary, approx. 5k (my daughter who is 22 year old is contributing a part of her income for household expenses). Please advise the best schemes/ MFs that we can invest into and also advise the procedure to MF as we have no knowledge about it. Also if my daughter can invest approx 5k-8k, what are the best plans for her to invest in SIP. Please advise. Thankyou.
Ans: It's wonderful to see your proactive approach towards investing and securing your family's financial future. Investing in mutual funds through SIPs can be a great way to start building wealth gradually over time.

For you and your husband, consider starting with SIPs in diversified equity funds or balanced funds that suit your risk appetite and investment goals. As beginners, it's crucial to choose schemes with a track record of consistent performance and managed by reputable fund houses.

For your daughter, she can also opt for SIPs in equity funds aligned with her risk tolerance and long-term financial objectives. Encouraging her to start investing early can help her harness the power of compounding and achieve her financial goals.

To start investing in mutual funds, you can approach a Certified Financial Planner or a mutual fund distributor who can guide you through the process, help you select suitable funds, and assist with the necessary paperwork.

Remember, investing is a journey, and it's essential to stay disciplined, patient, and well-informed along the way. With dedication and the right guidance, you can pave the way towards a financially secure future for your family.

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Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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Hi, I am a 47 years old housewife. I am interested in investing in MFs and stocks, but I'm quite naive in this and a little afraid of wrong decisions. Rediff gurus could you please suggest how can I make a start? I donot have a demat account also. Please suggest how to get into trading.
Ans: starting your investment journey can feel overwhelming, but it's also exciting and rewarding. Here's a gentle roadmap:

Begin by educating yourself about mutual funds and stocks. There are plenty of resources online, including articles, videos, and tutorials tailored for beginners.
Consider attending workshops or webinars conducted by reputable financial institutions or experts in the field. These sessions can provide valuable insights and answer many of your questions.
Start small. Begin with mutual funds, which are relatively safer and more straightforward compared to direct stock investments. You can gradually transition to stocks as you gain confidence and experience.
Open a Demat account and a trading account with a reputed brokerage firm. Ensure the brokerage firm offers user-friendly platforms and provides excellent customer support, especially for beginners.
Seek guidance from a Certified Financial Planner (CFP) or a financial advisor. They can assess your financial situation, risk tolerance, and investment goals to provide personalized recommendations.
Diversify your portfolio. Spread your investments across different asset classes, sectors, and geographical regions to minimize risk. Avoid putting all your money into one investment.
Keep a long-term perspective. Investing is not a get-rich-quick scheme. It requires patience, discipline, and consistency. Stay focused on your goals and avoid making impulsive decisions based on short-term market fluctuations.
Monitor your investments regularly but avoid obsessing over daily price movements. Review your portfolio periodically, perhaps every six months or annually, and make necessary adjustments based on changes in your financial situation or market conditions.
Remember, every investor starts somewhere, and it's okay to make mistakes along the way. What's important is to learn from them and stay committed to your financial goals. Happy investing!

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Ramalingam Kalirajan  |8005 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

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My salary is 67k in hand my age is 29 and unmarried and i have no investment now i want to start investment with a motive to get retire in age 60 and also build wealth for my child and home how can i achieve all this through which Mutual funds so that i can easily fund my child education in future and for home
Ans: Setting Financial Goals
Your primary financial goals are:

Retirement at age 60
Wealth creation for future child's education
Purchasing a home
Let's devise a plan to achieve these goals through mutual fund investments.

Monthly Budget Allocation
Your salary is Rs. 67,000. Here's a suggested allocation:

Emergency Fund: Save 6 months' expenses in a savings account or liquid fund.
SIP Investment: Allocate 20-25% of your salary for SIPs (Rs. 13,400 - Rs. 16,750).
Short-term Goals: Save for immediate needs (10% of salary).
Lifestyle Expenses: Allocate the rest for living expenses and discretionary spending.
Suggested Investment Strategy
Diversified Portfolio
Equity Mutual Funds:

Invest in large-cap and multi-cap funds for stable growth.
Allocate a portion to mid-cap and small-cap funds for higher returns.
Debt Mutual Funds:

Invest in debt funds for stability and lower risk.
Allocate a portion to balanced or hybrid funds for a mix of equity and debt.
Systematic Investment Plan (SIP):

Start SIPs in chosen funds.
Regular investments ensure disciplined savings and cost averaging.
Example Allocation
Large-Cap Fund:

Stability and steady growth.
Allocate Rs. 5,000 per month.
Multi-Cap Fund:

Diversified equity exposure.
Allocate Rs. 4,000 per month.
Mid-Cap Fund:

Higher growth potential.
Allocate Rs. 3,000 per month.
Small-Cap Fund:

High risk, high reward.
Allocate Rs. 2,000 per month.
Balanced Fund:

Mix of equity and debt.
Allocate Rs. 2,000 per month.
Retirement Planning
Calculate Future Needs
Retirement Corpus:

Estimate future expenses.
Use a retirement calculator for precise planning.
Regular Reviews:

Adjust investments as needed.
Increase SIPs with salary hikes.
Investment Horizon
Long-Term Focus:
Equity funds for long-term growth.
Debt funds for stability as retirement approaches.
Child's Education
Education Fund
Dedicated SIPs:

Start a separate SIP for education.
Choose child education-specific funds.
Goal-Based Planning:

Estimate education costs.
Adjust SIPs to meet target amount.
Home Purchase
Down Payment and Loan
Savings Plan:

Save for a down payment in a short-term debt fund or FD.
Consider a home loan for the balance amount.
EMI Affordability:

Ensure EMIs are within your budget.
Keep debt-to-income ratio manageable.
Final Insights
Diversification:

Ensure portfolio is diversified.
Minimize risk by spreading investments.
Regular Monitoring:

Review investments periodically.
Rebalance portfolio as needed.
Professional Advice:

Consult a Certified Financial Planner for personalized guidance.
Ensure alignment with financial goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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As a concerned parent, I am deeply troubled by the recent tragic incident involving a Nepali student at KIIT. Given the reports of unrest and safety concerns, what can we as parents do to ensure the well-being of our children who study in other states? How can parents be assured that such incidents will be prevented in the future?
Ans: Dear Anonymous,
It has been a very disturbing incident indeed and as parents it can set off a string of thoughts on children's safety.
As parents what can be done is:
1. Reassure your child that whatever the situation, you are there for them! Just knowing this can ease them in terms of having an open channel of communication with you.
2. Also, being in touch with them not just out of worry BUT to genuinely inspire them can keep them in a motivated space.
3. A semblance of a schedule of visits from either side will ensure that they are always connected with family
4. Encouraging them to pursue cultural events/sports will give them a chance at being in larger groups so they never feel lonely or can't be singled out
5. If your child is someone who is quieter and prefers to be by themselves most times, have regular conversations with them.

There's only so much that you can do as a parent; but I firmly believe and have seen in my experiences while working with youngsters: The ones who have strong family support usually seem to most likely struggle less through these unknown challenges.
And one more thing: Tell them as often as you can: You are loved!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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I’m a 60-year-old woman with stiff joints and limited flexibility. Can yoga help me improve my mobility and reduce joint pain?
Ans: Yes, yoga can help you improve mobility, reduce joint pain, and increase flexibility, even at 60. Gentle yoga movements, breathing exercises, and relaxation techniques can make your body feel lighter and more comfortable.

How Yoga Helps with Joint Pain & Stiffness
? Improves Blood Circulation – Keeps joints nourished and reduces stiffness.
? Enhances Flexibility – Slow, mindful stretches improve movement.
? Reduces Pain & Inflammation – Gentle yoga relieves pressure on the joints.
? Boosts Strength & Stability – Helps prevent falls and injuries.

Gentle Yoga Poses for Joint Mobility
Tadasana (Mountain Pose) – Improves posture and balance.
Pawanmuktasana (Joint Release Movements) – Simple hand, knee, and ankle rotations to reduce stiffness.
Marjaryasana-Bitilasana (Cat-Cow Pose) – Eases back and neck stiffness.
Supta Baddha Konasana (Reclined Butterfly Pose) – Opens the hips and relaxes the body.
Vrikshasana (Tree Pose, with support) – Strengthens legs and improves stability.
Pranayama (Breathing for Joint Health)
? Anulom Vilom (Alternate Nostril Breathing) – Improves oxygen flow and reduces stress.
? Bhramari (Humming Bee Breath) – Relaxes the nervous system.

Why Seek a Yoga Coach?
A coach ensures that you practice safely, avoiding strain on weak joints. With proper guidance, you can regain flexibility and move with ease! Start slow, listen to your body, and stay consistent.

R. Pushpa, M.Sc (Yoga)
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I’m a 31-year-old woman planning to start a family. Are there yoga practices that can help improve fertility and prepare my body for pregnancy?
Ans: Preparing your body for pregnancy through yoga is a wonderful way to enhance fertility, reduce stress, and create a balanced, healthy environment for conception.

Yoga Practices to Improve Fertility & Prepare for Pregnancy
1. Gentle Asanas to Boost Fertility
? Baddha Konasana (Butterfly Pose) – Improves blood circulation to the pelvic area and strengthens reproductive organs.
? Supta Baddha Konasana (Reclined Butterfly Pose) – Relaxes the body and enhances hormone balance.
? Bhujangasana (Cobra Pose) – Stimulates the ovaries and improves blood flow.
? Setu Bandhasana (Bridge Pose) – Helps regulate hormones and strengthens the lower back.
? Viparita Karani (Legs-Up-The-Wall Pose) – Reduces stress and improves circulation to the uterus.

2. Pranayama (Breathing Techniques)
? Nadi Shodhana (Alternate Nostril Breathing) – Balances hormones and reduces stress.
? Bhramari Pranayama (Humming Bee Breath) – Calms the nervous system and improves reproductive health.

3. Lifestyle Tips for Fertility
Eat a nutrient-rich diet with fresh fruits, vegetables, and healthy fats.
Maintain a healthy sleep cycle (7-8 hours of rest).
Avoid stress – meditation and deep relaxation can help balance hormones.
Stay hydrated and engage in light physical activity daily.
Guidance Matters!
A yoga coach can create a customized plan based on your body’s needs, ensuring safe and effective practice. Stay consistent, keep a positive mindset, and trust your body’s natural ability to prepare for motherhood!

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

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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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