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What to invest 55 lakhs for 15 years to maximize wealth? - 42-year-old moderate-aggressive investor.

Ramalingam

Ramalingam Kalirajan  |10894 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 21, 2025

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
Shaks Question by Shaks on Mar 20, 2025Hindi
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Hello sir, I have recently sold my flat and I have 55 lacs with me which I can park for next 12-15 years. Please suggest the avenues where I can get maximum wealth creation. I am 42 and and you can consider me moderate to aggressive investor. How much can be the realistic returns from PMS considering they charge high fees. Does PMS give more returns than MFs in 10 year horizon. Please suggest.

Ans: You have Rs. 55L available for long-term investment. Your focus is wealth creation with a moderate to aggressive approach. Let’s evaluate the best options.

Investment Avenues for Maximum Wealth Creation
1. Actively Managed Mutual Funds
Suitable for your risk appetite and time horizon.
Managed by experts who adjust portfolios based on market conditions.
Potential to outperform passive funds and PMS on a risk-adjusted basis.
Lower fees than PMS, ensuring better net returns.
Recommended approach: SIP + staggered lump sum deployment.
2. Portfolio Management Services (PMS)
Designed for high-net-worth individuals.
PMS offers customized stock selection with direct equity ownership.
Higher fees (fixed + performance-based) impact net returns.
Returns may be volatile, with no guarantee of outperformance over mutual funds.
Requires a longer commitment with limited liquidity.
3. Thematic and Sectoral Investments
Can boost returns but require careful selection.
Higher volatility compared to diversified funds.
Suitable for a portion of the portfolio (not more than 10-15%).
4. Gold ETFs or Sovereign Gold Bonds (SGBs)
Good for diversification but not ideal for aggressive growth.
SGBs provide 2.5% annual interest along with capital appreciation.
Should not exceed 5-10% of the portfolio.
5. International Equity Exposure
Helps in diversification and hedging against rupee depreciation.
Invest via actively managed international mutual funds.
Avoid direct stocks unless you track global markets actively.
Mutual Funds vs. PMS: A 10-Year Perspective
Returns Comparison
PMS may deliver superior returns if the fund manager picks outperforming stocks.
Actively managed mutual funds historically deliver 12-16% CAGR over 10-15 years.
PMS fees reduce effective returns, making them less attractive unless they significantly outperform.
Risk and Liquidity
Mutual funds provide easy liquidity.
PMS has lock-in periods and exit loads, making it less flexible.
Market risks exist in both, but mutual funds have regulatory oversight.
Tax Implications and Cost Analysis
Mutual funds have lower tax burdens with systematic withdrawals.
PMS taxation is like direct stocks, requiring individual filing for capital gains.
PMS charges (fixed + performance-based) can eat into returns.
Optimized Investment Strategy
Deploy Rs. 55L in a staggered manner over 12-18 months.
Allocate across large-cap, mid-cap, small-cap, and thematic funds.
Consider a 10-15% PMS allocation only if comfortable with higher risk.
Use SWP after 12-15 years for tax-efficient withdrawals.
Final Insights
Mutual funds remain the best option for wealth creation with flexibility.
PMS can work if you accept higher costs and volatility.
Diversify with a structured approach for long-term success.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |10894 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 06, 2024Hindi
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Hi, I am 35 years old and have an investment goal of 5 crore by the age of 55. I am investing 8000 per month in following mutual funds : ICICI Prudential Bluechip Fund Direct - Growth - 2000 Mirae Asset ELSS Tax Saver Fund Direct - Growth - 500 SBI Bluechip Direct - Growth - 2000 Axis Midcap Direct - Growth - 500 Parag Parikh Flexi Cap Fund Direct - Growth - 1000 Axis ELSS Tax Saver Direct Plan - Growth - 500 Axis Small Cap Fund Direct - Growth - 500 Tata Business Cycle Fund Direct - Growth - 500 ICICI money market Direct - Growth - 500 I have accumulated 3.78 lacs till date in last 2 years. Can you tell me if these MFs have growth potential or let me know any other funds that can help me with my goal. I can invest 2000 more by year end in MFs. I also invest 6000 per month in different shares. I have accumulated 2 lacs in that as well. Invest 9000 per month in PPF and currently have 4.6 lacs in there and also have 11.25 lacs in there with monthly contribution of 22k. Invest 4000 per month in NPS. Also, invest 1200 per month in SBI Ulip plan with 12 years more to go. Currently with 8 years of investment, total yield stands at 1.7 lacs. Have 3 different LICs which will give me around 35 Lacs on maturity. I have a property that is around 35 Lacs with home loan pending of 23 lacs to be completed in next 6 years. I also have personal raw gold of around 2.25 lacs Am I on the right track?
Ans: You've embarked on a comprehensive investment journey, which is commendable. Let's delve into your portfolio and discuss its growth potential:

Your monthly SIP investments across various mutual funds demonstrate a diversified approach towards wealth creation.

ICICI Prudential Bluechip Fund, Mirae Asset ELSS Tax Saver Fund, and SBI Bluechip Fund are renowned for their stability and consistent returns.

Axis Midcap and Axis Small Cap Funds provide exposure to mid-cap and small-cap segments, respectively, offering growth potential over the long term.

Parag Parikh Flexi Cap Fund is known for its flexibility and balanced approach, while Tata Business Cycle Fund focuses on economic cycles, offering a unique investment proposition.

Considering your investment horizon and target corpus of 5 crores by the age of 55, these mutual funds align well with your goals.

Adding 2000 more to your monthly SIPs by year-end will further boost your investment corpus and accelerate your wealth accumulation journey.

Your investment in shares, PPF, and NPS complements your mutual fund investments, enhancing diversification and risk management.

Additionally, your investments in ULIP, LIC policies, and real estate add another layer of financial security and asset appreciation potential.

With a clear roadmap and diversified investment portfolio, you're on the right track towards achieving your financial goals.

However, it's essential to periodically review your portfolio's performance, rebalance if necessary, and stay updated with market trends.

Ensure that your asset allocation aligns with your risk tolerance and long-term objectives, and seek professional advice if needed.

Overall, your proactive approach towards financial planning and diverse investment portfolio indicate that you're on the path to financial success.

Moreover, instead of investing directly, consider investing in regular plans through a Mutual Fund Distributor (MFD). Here's why:

By investing through a Regular Plan, you can access professional advice and guidance from an experienced Mutual Fund Distributor.
MFDs can help you navigate through the complexities of the market, select suitable funds based on your risk profile, and monitor your investments regularly.
Regular plans often offer additional services, such as portfolio reviews, financial planning, and timely updates on market trends and fund performance.
Investing through an MFD ensures that you receive ongoing support and assistance, helping you make informed decisions and stay on track towards your financial goals.

Overall, by diversifying your investments and leveraging the expertise of a Mutual Fund Distributor, you can enhance the effectiveness of your investment strategy and optimize your chances of long-term success.

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Nayagam P

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Career Counsellor - Answered on Dec 16, 2025

Asked by Anonymous - Dec 13, 2025Hindi
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Hello sir I have literally confused between which university to pick if not good marks in mht cet Like sit Pune or srm college or rvce or Bennett as I am planning to study here bachelors and masters in abroad so is it better to choose a government college which coep and them if I get them my home college which Kolhapur institute of technology what should I choose a good university? If yes than which
Ans: Based on my extensive research of official college websites, NIRF rankings, international recognition metrics, placement data, and masters abroad admission requirements, your choice between COEP Pune, RVCE Bangalore, SRM Chennai, Bennett University Delhi, and Kolhapur Institute of Technology (KIT) fundamentally depends on five critical institutional aspects essential for successful masters admission abroad: global research output and international collaborations, CGPA-based competitiveness (minimum 7.5-8.0 required for top international programs), faculty expertise in emerging technologies, international student exchange partnerships, and proven alumni track records at globally-ranked universities. COEP Pune ranks nationally at NIRF #90 Engineering with India Today #14 Government Category ranking, offering robust infrastructure and 11 academic departments with research centers in AI and renewable energy, though international research collaborations are moderate compared to IITs. RVCE Bangalore demonstrates strong national standing with consistent COMEDK admissions competitiveness, excellent placements averaging Rs.35 LPA with highest at Rs.92 LPA, and established international collaborations through Karnataka PGCET-based MTech programs, providing solid foundations for masters applications. SRM Chennai maintains extensive research partnerships with 100+ companies visiting campus, highest packages reaching Rs.65 LPA, and documented international research linkages through sponsored programs like Newton Bhaba funded projects, significantly strengthening masters abroad candidacy through diverse research exposure. Bennett University Delhi distinctly outperforms others in international institutional alignment, recording highest placements at Rs.137 LPA with average Rs.11.10 LPA, explicit academic collaborations with University of British Columbia Canada, Florida International University USA, University of Nebraska Omaha, University of Essex England, and King's University College Canada—these partnerships directly facilitate seamless masters transitions abroad and represent unparalleled institutional bridges to international graduate programs. KIT Kolhapur records respectable placements at Rs.41 LPA highest with average Rs.6.5 LPA, NAAC A+ accreditation, autonomous institutional status under Shivaji University, and 90%+ placement consistency across technical streams, though international research visibility and foreign university partnerships remain comparatively limited. For international masters admission success, universities globally prioritize bachelors institution reputation, minimum CGPA 7.5-8.0 (Bennett and SRM facilitate this through curriculum rigor), GRE/GATE scores (minimum 90 percentile), English proficiency (TOEFL ≥75 or IELTS ≥6.5), research output documentation, and faculty recommendation quality reflecting institution's research culture—criteria most strongly supported by Bennett's explicit international collaborations, SRM's documented research partnerships, and COEP's autonomous departmental research centers. Bennett simultaneously offers global pathway programs reducing masters abroad costs through articulation agreements and provides curriculum aligned internationally with partner institution standards, representing optimal intermediate bridge structure versus direct masters application. The cost-effectiveness and structured transition support through international partnerships, combined with demonstrated placement success and faculty research visibility, position these institutions distinctly above KIT Kolhapur for masters abroad aspirations. For your specific objective of pursuing masters abroad, prioritize Bennett University Delhi first—its explicit international university partnerships with Canadian, American, and European institutions, highest placement packages (Rs.137 LPA), and structured global pathway programs create seamless masters transitions with reduced costs. Second choice: SRM Chennai, offering extensive research collaborations, documented international linkages, and competitive placements (Rs.65 LPA highest) strengthening masters applications. Third: COEP Pune, delivering strong national standing and autonomous research infrastructure. Avoid RVCE and KIT due to limited international visibility and explicit foreign university partnerships compared to the above three institutions. All the BEST for a Prosperous Future!

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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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