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Ramalingam

Ramalingam Kalirajan  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 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 - Apr 13, 2024Hindi
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Hello sir can you suggest good option in swp to generate monthly income of 50k atleast in 15 years from now via sip

Ans: o generate a monthly income of 50k in 15 years through SWP (Systematic Withdrawal Plan), you'll need to build a sizable corpus. Here's a suggested approach:

Investment Strategy:

Start a SIP (Systematic Investment Plan) in equity mutual funds with a moderate to high-risk profile to build your corpus over 15 years.
As you near your goal, gradually shift a portion of your investments to debt funds or balanced funds to reduce volatility.
Corpus Calculation:

Using an average annual return of 10% (considering the market's historical average), you would need a corpus of approximately 1.6 crores to generate 50k per month through SWP.
SWP Selection:

Opt for SWP from balanced funds, debt funds, or a mix of both based on your risk appetite.
Ensure the SWP amount is not more than the fund's average returns to avoid depleting your corpus.
Tax Implications:

Remember that SWP from equity funds held for less than 3 years attracts short-term capital gains tax. Funds held for more than 3 years are taxed at 10% without indexation.
SWP from debt funds held for less than 3 years is added to your income and taxed as per your income tax slab. After 3 years, it's taxed at 20% with indexation.
Regular Monitoring:

Periodically review your SWP strategy and make adjustments based on market conditions, fund performance, and your financial needs.
Emergency Fund:

Maintain a separate emergency fund to cover 6-12 months of expenses to avoid premature withdrawals from your investment.
Remember, the above strategy is a general guideline. It's crucial to consult with a financial advisor to tailor the plan according to your financial situation, goals, and risk tolerance.
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  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - Apr 12, 2024Hindi
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Hello sir.. I am 37 years old. Dont have any investiments as of now.. I can invest 15k per month for long term. Please suggest me some SIP OPTIONS Which suits for me
Ans: It's great that you're considering investing for the long term at 37. SIPs (Systematic Investment Plans) are an excellent way to start building wealth gradually. Here are some suggestions for SIP options that could suit you:

Diversified Equity Funds: Opt for SIPs in diversified equity funds that invest across various sectors and market capitalizations. These funds offer growth potential over the long term while spreading risk across different segments of the market.

Large Cap Funds: Consider investing in large-cap funds, which primarily focus on well-established companies with a track record of stable performance. These funds offer relatively lower risk compared to mid and small-cap funds while still providing opportunities for growth.

Multi-Cap Funds: Multi-cap funds invest in companies across the market capitalization spectrum, offering a balance of growth and stability. These funds adapt to changing market conditions, making them suitable for long-term investors seeking diversification.

Balanced Funds: If you prefer a balanced approach, consider SIPs in balanced funds, which invest in both equities and debt instruments. These funds offer a mix of capital appreciation and income generation, making them suitable for conservative investors.

Sectoral Funds (Optional): If you have a strong conviction about a specific sector's growth potential, you may consider SIPs in sectoral funds. However, keep in mind that sectoral funds carry higher risk due to their concentrated exposure.

When selecting SIP options, consider factors such as your risk tolerance, investment goals, and investment horizon. Additionally, review the fund's track record, fund manager's expertise, and expense ratio before making a decision.

Remember, consistency and patience are key when investing through SIPs. Stay committed to your investment plan, and over time, you can potentially build a significant corpus for your future financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 13, 2025

Asked by Anonymous - Feb 13, 2025Hindi
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I am ready to invest Rs 2 to 3 lakhs every year. Please suggest the right SIPs and schemes that can help me earn Rs 5 lakh additional income every year.
Ans: You want to invest Rs 2 to 3 lakh every year and generate an additional Rs 5 lakh yearly income.

This requires a strong investment strategy. The right SIP plan will help you build a sustainable income.

Investment Approach for High Returns
Equity mutual funds are the best option for long-term wealth creation.

Actively managed funds can outperform index funds in the long run.

Diversified investment across large-cap, mid-cap, and small-cap funds is essential.

Avoid direct funds and choose regular funds through an MFD with CFP credentials.

Understanding Return Expectations
The expected long-term return from equity mutual funds is 12% to 15% annually.

To earn Rs 5 lakh yearly, your corpus must be large enough.

You need a disciplined SIP strategy for 10+ years to achieve this.

Asset Allocation Strategy
Equity Exposure: Allocate 80% to 90% in equity funds for high growth.

Debt Exposure: Keep 10% to 20% in debt funds for stability.

Rebalance investments based on market conditions.

Selecting the Right SIPs
Invest in a mix of large-cap, flexi-cap, mid-cap, and small-cap funds.

Large-cap funds provide stability during market fluctuations.

Mid-cap and small-cap funds offer high growth potential.

A small portion in balanced advantage funds adds stability.

Tax Considerations
Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20%.

Equity investments should be held for more than a year to reduce tax burden.

How to Withdraw Rs 5 Lakh Per Year
Once you build a sufficient corpus, use Systematic Withdrawal Plan (SWP).

SWP ensures steady cash flow while keeping investments intact.

Proper fund selection reduces tax liability on withdrawals.

Finally
Start SIPs in actively managed equity funds for the best returns.

Choose regular funds through an MFD with CFP credentials for guidance.

Stick to a long-term investment strategy for sustainable wealth.

A Certified Financial Planner can help optimize your portfolio for income generation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

..Read more

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IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Mar 17, 2025

Asked by Anonymous - Mar 14, 2025Hindi
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Hi Mayank, My son has specific learning disability and have pwd certificate with more than 40% benchmark, he is very good in maths and logical reasoning but very poor at language portion, he has recently given JEE, there is probability of getting in government funded college, but my concern is wheather he will be able to tackle the pressure of college, I have discussed with my son regarding the various options as he is very keen on computer science, I wanted to know what are the various options available with gim so that he can lead a successful life, he is hard working and open to many ideas, thanks in advance.
Ans: Hello Sir,
It's great that your son is hardworking and open to different ideas! Given his strong aptitude for math and logical reasoning.
Here are some options.

Government-Funded Colleges (IITs, NITs, IIITs, GFTIs): If he qualifies for these, he will get support under the PWD category, including extra time in exams, scribes (if needed), and relaxation in certain academic criteria.
Private Universities (BITS, IIIT-H, Ashoka, Shiv Nadar, Plaksha, etc.): Some private institutions offer excellent CS programs with flexible learning environments.
Specialized Accommodations: Many colleges provide support like extra tutoring, note-taking assistance, language support, and mental health counseling.

Regarding Coping with College Pressure:

Choosing the Right College: Look for institutions that offer strong disability support and a friendly learning environment.

Developing Learning Strategies: Text-to-speech tools, structured note-taking apps, and assistive learning technologies can help.

Seeking Mentors & Support Groups: Connecting with peers or seniors who faced similar challenges.

Internships & Hands-on Learning: Real-world projects can build confidence and skills outside academic pressure.

Alternative CS Education Paths
Online Degrees (IIT Madras BSc in Data Science, Georgia Tech MS Online, etc.): A flexible option if he prefers self-paced learning.
Coding Bootcamps (Scaler, Masai, Pesto, Newton School, etc.): Fast-track career-focused programs.
Open-Source Learning (CS50, MIT OCW, Udemy, Coursera, etc.): Helps in skill-building without the pressure of formal college exams.

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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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