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Answered on Mar 29, 2022

Shailashree Question by Shailashree on Mar 29, 2022Hindi
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I am holding these stocks from long time. Please suggest should I hold or exit.

Ans:

Name Qty hold price Recommendation
TATACONSUM 11 823.79 Hold
MOTHERSUMI 175 203.4 Hold
LICHSGFIN 10 475.65 Exit
DISHTV 250 83.14 Exit
RITES 150 180.26 Hold
CANBK 88 275.05 Exit
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  |1486 Answers  |Ask -

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

Asked by Anonymous - Apr 11, 2024Hindi
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Hello Sir, I lost my job in layoff . I am 46 year old . I had a home loan of 1.18 cr with EMI of 1.07L per month . I have 2 kids, Daughter is in 12th and Son is in 9th . I am selling my other 2 flats so that i can repay the loan and left money i will put in FD. I have to plan my children education 60 L and Retirement planning ( Next Month onwards i require 1 L ). After paying home loan I left with 70 L which i will put in FD . I have 70 L in EPF, 30 L in PPF maturity in 2026, 19 L FD, 3.3 L NSC ( Maturity at 2032/ 6.6L), 14 L Mutual Fund. My wife earns 50 K per month . Monthy expenses are 75K . My goals of havinng 1 L from next month and kids education can be achieved with these investment .
Ans: I'm sorry to hear about your job loss, but it's commendable that you're taking proactive steps to manage your finances during this challenging time. Let's create a plan to address your immediate needs and long-term goals:

• Home Loan Repayment: Selling your other two flats to repay the home loan is a prudent decision, as it will relieve you of the burden of the EMI and reduce financial stress.

• Emergency Fund: It's essential to maintain an emergency fund to cover unexpected expenses and loss of income. Since you'll have 70 lakhs from the sale of your flats, consider keeping a portion of this amount aside as your emergency fund, ideally in a liquid and accessible form like a savings account or short-term FD.

• Children's Education: With 60 lakhs earmarked for your children's education, you can explore investment options that offer growth potential over the medium to long term. Consider a combination of equity mutual funds, balanced funds, and fixed-income instruments to achieve your education goals. Since your daughter is in 12th grade, you may need to prioritize her education expenses in the near term.

• Retirement Planning: Your goal of having 1 lakh per month from next month onwards for retirement can be achieved by structuring your existing investments wisely. With 70 lakhs in EPF, 30 lakhs in PPF (maturing in 2026), and other fixed deposits and mutual funds, you have a solid foundation. You can explore options like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), and systematic withdrawal plans (SWPs) from mutual funds to generate a regular income stream in retirement.

• Income Replacement: Since you'll no longer have a regular income from employment, it's crucial to plan for income replacement. Your wife's income of 50,000 per month will provide some support, but you may need to supplement it with income generated from your investments.

• Expense Management: Given your monthly expenses of 75,000, it's essential to budget carefully and prioritize your spending. Look for areas where you can cut costs without compromising on essentials.

• Professional Advice: Consider consulting with a Certified Financial Planner who can help you develop a comprehensive financial plan tailored to your specific circumstances and goals. They can provide valuable guidance on investment strategies, tax planning, and retirement planning.

In conclusion, while losing your job is undoubtedly challenging, with careful planning and prudent financial management, you can navigate this period of transition successfully. By leveraging your existing assets and making strategic investment decisions, you can work towards achieving your children's education goals and securing a comfortable retirement for yourself. Stay focused, stay positive, and remember that you're not alone in this journey.

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Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

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Hi sir , I would like to invest 6000 per month and iam 38 years old and by retirement u would like to get corpus fund of 2 crore, sir can you suggest me where to invest and reach my goal
Ans: It's great that you're planning for your retirement at 38. Let's explore your investment options to reach your goal of a 2 crore corpus:

• Start with SIPs: Since you're looking to invest 6000 per month, Systematic Investment Plans (SIPs) in mutual funds are a smart choice. SIPs offer the benefit of rupee cost averaging and can help you build wealth over time.

• Asset Allocation: Given your age and long-term investment horizon, consider a diversified portfolio comprising equity and debt funds. Equity funds offer growth potential, while debt funds provide stability.

• Equity Mutual Funds: Allocate a significant portion of your SIPs to equity mutual funds. These funds invest in stocks and have the potential to generate higher returns over the long term. Look for funds that have a track record of consistent performance and align with your risk tolerance.

• Debt Mutual Funds: To balance risk, consider allocating a portion of your SIPs to debt mutual funds. These funds invest in fixed-income securities like bonds and offer relatively stable returns. They can provide a cushion during market downturns.

• Review and Adjust: Regularly review your investment portfolio and make adjustments as needed. As you approach retirement, consider gradually shifting your allocation from equity to debt to reduce volatility and preserve capital.

• Consider Tax-saving Funds: If you haven't already, explore Equity Linked Savings Schemes (ELSS), also known as tax-saving funds. These funds offer tax benefits under Section 80C of the Income Tax Act while providing exposure to equity markets.

• Consult a Certified Financial Planner: Seeking advice from a Certified Financial Planner can provide valuable insights into structuring your investment portfolio and achieving your retirement goals. They can assess your risk profile, investment horizon, and financial objectives to tailor a plan that suits your needs.

• Stay Disciplined: Consistency is key to long-term investing success. Stick to your SIPs even during market fluctuations and avoid making impulsive decisions based on short-term market movements.

• Monitor Progress: Keep track of your investment performance and periodically reassess your progress towards your retirement goal. Adjust your strategy as necessary to stay on track and maximize returns.

By following these steps and staying committed to your investment plan, you can work towards achieving your retirement goal of a 2 crore corpus. Remember, investing is a journey, and patience and discipline are essential for success.

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Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

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Invest in different mutual funds every year lumpsum and sell MF bought latest year in case of fund requirements (to reduce taxation,) is it good strategy??
Ans: Investing in different mutual funds every year and selling the funds bought in the latest year to meet fund requirements can be a strategy worth considering, but it's essential to understand its implications:

• Taxation Benefits: This strategy can help reduce taxation by leveraging the benefit of long-term capital gains tax. Mutual funds held for more than one year qualify for long-term capital gains tax, which is currently taxed at a lower rate compared to short-term capital gains tax.

• Diversification: Investing in different mutual funds every year allows you to diversify your portfolio across various asset classes, sectors, and investment styles. Diversification can help mitigate risk and optimize returns over the long term.

• Flexibility: Selling the mutual funds bought in the latest year to meet fund requirements provides flexibility in managing your cash flow needs. It allows you to liquidate investments strategically while minimizing tax implications.

However, it's essential to consider the following factors:

• Transaction Costs: Buying and selling mutual funds frequently can incur transaction costs, including brokerage fees, entry and exit loads, and other administrative charges. These costs can eat into your returns and affect the overall performance of your portfolio.

• Market Timing: Timing the market to buy and sell mutual funds can be challenging and may result in missed opportunities or losses. It's crucial to base your investment decisions on sound research, analysis, and a long-term perspective rather than short-term market fluctuations.

• Investment Goals: Your investment goals, time horizon, and risk tolerance should drive your investment strategy. While tax efficiency is important, it should not compromise the alignment of your investments with your financial objectives.

• Tax Implications: While long-term capital gains tax rates are lower, they still apply. Additionally, selling mutual funds bought in the latest year may trigger short-term capital gains tax, which is taxed at a higher rate. It's essential to weigh the tax implications carefully and consult with a tax advisor or Certified Financial Planner.

In conclusion, while the strategy of investing in different mutual funds every year and selling the latest year's funds to meet fund requirements can offer tax benefits and flexibility, it's essential to evaluate its suitability based on your individual circumstances and financial goals. Consider consulting with a Certified Financial Planner to assess the strategy's implications and determine if it aligns with your overall investment strategy.

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Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

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Hi sir, I am fifty years old. I was already invested one month ago 12,50,000/- in SBI equity regular growth mutual fund. Now, I am planning to start SIP and monthly 5,000/-. Kindly, advice me for the SIP. Thanks.
Ans: It's excellent to see your commitment to investing, especially as you plan for your financial future. Let's explore your options for starting a SIP:

• Given your existing investment of 12,50,000/- in SBI Equity Regular Growth Mutual Fund, it's clear you're already on the path to building wealth.
• Adding a monthly SIP of 5,000/- will further enhance your investment strategy and help you achieve your financial goals.

• When selecting a SIP, consider factors like your investment horizon, risk tolerance, and financial objectives.
• As you're fifty years old, it's essential to strike a balance between growth potential and stability in your investment choices.

• Equity mutual funds offer growth potential but also come with higher volatility. Since you're already invested in SBI Equity Regular Growth Mutual Fund, you may want to diversify your portfolio with a different category of mutual fund.
• Debt mutual funds or balanced funds could be suitable options to consider, offering a more conservative approach while still providing potential for growth.

• Additionally, ensure you choose a SIP with a reputable fund house and a track record of consistent performance.
• Look for funds that align with your investment goals and have a proven track record of delivering returns over the long term.

• As a Certified Financial Planner, I'm here to guide you in selecting the right SIP to complement your existing investment and financial objectives.
• We'll evaluate various mutual fund options, assess their suitability for your portfolio, and ensure they align with your risk profile and investment horizon.

• Remember, investing is a journey, and it's essential to stay disciplined and patient.
• By making informed decisions and staying focused on your long-term goals, you can achieve financial success.

• If you have any further questions or need assistance in selecting a SIP, feel free to reach out.
• Your commitment to investing is commendable, and I'm here to support you every step of the way.

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Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

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Hi sir, I am 30 and currently doing a sip of 5k in ppfas and 5k in quant infrastructure fund. I have home loan of 65 Lakhs as well at 8.75%. I am planning to invest another 10k per month. Could you kindly suggest where I can invest for my son (3 years) higher education and for retirement. Can investing in nps beat mutual funds?
Ans: It's commendable that you're prioritizing financial planning at such a young age. Let's delve into your investment options:

• Firstly, I appreciate your disciplined approach to investing through SIPs, which is a smart way to build wealth over time.
• It's great that you're thinking ahead about your son's future education and your retirement needs.

• Considering your current investments, we can explore additional mutual fund options to diversify your portfolio.
• Diversification helps spread risk and optimize returns, essential for achieving long-term financial goals.

• When it comes to investing for your son's education and your retirement, it's crucial to align your investments with your time horizon and risk tolerance.
• For long-term goals like these, equity mutual funds offer the potential for higher returns, albeit with higher volatility.

• Regarding your query about the National Pension System (NPS) versus mutual funds, both have their pros and cons.
• NPS offers tax benefits and a structured retirement savings platform, but it comes with restrictions on withdrawals and limited investment choices.

• On the other hand, mutual funds provide greater flexibility in investment choices and withdrawal options.
• However, they lack the tax benefits of NPS.

• Ultimately, the decision between NPS and mutual funds depends on your individual preferences, risk appetite, and financial goals.
• It's essential to weigh the pros and cons of each option and choose the one that best aligns with your needs.

• As a Certified Financial Planner, I can help you analyze your financial situation and goals to create a customized investment plan.
• Together, we'll select suitable mutual funds that balance growth potential and risk for your son's education and retirement.

• Remember, investing is a journey, and it's essential to stay disciplined and focused on your long-term objectives.
• With careful planning and prudent decision-making, you can build a secure financial future for yourself and your family.

• Keep up the excellent work with your investments, and don't hesitate to reach out if you have any further questions or need assistance.
• You're on the right track towards achieving your financial aspirations, and I'm here to support you every step of the way.

...Read more

Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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Hello, I have a mutual fund corpus of ~32Lakhs. Per month SIP is 46k. When will I reach my first 1cr and by 2030 I want 5 CR corpus. I can increase the monthly SIP to 50K
Ans: It's fantastic to see you diligently investing in mutual funds to build your wealth. Let's crunch the numbers to chart your path to financial milestones:

• With a current mutual fund corpus of ~32 lakhs and a monthly SIP of 46k, your wealth is steadily growing.
• By increasing your monthly SIP to 50k, you're demonstrating a proactive approach to accelerating your wealth accumulation.

• To estimate when you'll reach your first 1 crore milestone, we'll consider factors like your current corpus, SIP amount, and expected rate of return.
• With consistent monthly investments and potential market growth, you're on track to achieve this milestone in the foreseeable future.

• However, reaching a 5 crore corpus by 2030 is a more ambitious goal and may require additional contributions and strategic planning.
• Increasing your monthly SIP to 50k is a step in the right direction, but you may also need to explore other avenues for wealth creation.

• It's essential to consider factors like market volatility, inflation, and your risk tolerance when projecting future returns.
• As a Certified Financial Planner, I can help you create a personalized financial plan to align your investments with your goals.

• By optimizing your asset allocation, diversifying your portfolio, and staying disciplined with your investments, you can enhance your chances of reaching your financial objectives.
• Regularly reviewing your investment strategy and making adjustments as needed will keep you on track towards achieving your goals.

• Remember, patience and consistency are key to long-term wealth creation.
• Keep up the excellent work with your investments, and together, we'll work towards realizing your financial dreams.

• If you have any questions or need further guidance along the way, don't hesitate to reach out.
• You're on a path to financial success, and I'm here to support you every step of the way.

...Read more

Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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Hello sir, I am investing in the following funds. 1) SBI mid and large cap 10000rs 2) SBI Contra Fund 5000 rs 3) Paragh Parik Flexicap 5000 rs I am planning to invest 15000 rs in HDFC Midcap opportunities and 20000 rs in SBI bluechip fund. Please guide me if these funds are good or shall I look for some other funds.
Ans: It's wonderful to see your commitment to financial planning. Let's dive into shaping your investment strategy:

• Firstly, I commend you for taking the initiative to invest and secure your financial future.
• It's a wise decision to seek guidance from a Certified Financial Planner like myself to navigate the complexities of investing.

• As we embark on this journey together, let's prioritize understanding your financial goals, risk tolerance, and investment horizon.
• Your unique circumstances and aspirations will guide us in crafting a tailored investment plan that aligns with your needs.

• Remember, investing is not just about chasing returns; it's about achieving your financial objectives while managing risk effectively.
• We'll focus on building a diversified portfolio that balances growth potential with stability to withstand market fluctuations.

• Mutual funds can be a powerful tool in your investment arsenal, offering access to a wide range of asset classes and investment strategies.
• By spreading your investments across different mutual funds, we can mitigate risk and optimize returns over the long term.

• It's essential to review your investment portfolio regularly and make adjustments as needed based on changing market conditions and your evolving financial goals.
• Consult a Certified Financial Planner, to provide ongoing support and guidance to keep you on track towards financial success.

• Lastly, remember that investing is a journey, not a destination.
• Stay disciplined, stay informed, and stay focused on your long-term objectives.

• With dedication and prudent decision-making, you can build a robust investment portfolio that paves the way for a secure and prosperous future.
• Together, let's turn your financial aspirations into reality. You're on the path to financial freedom, and I'm here to help you every step of the way.

...Read more

Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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1 Mahindra Manu life midcap fund-Dirct plan- 5 lac onetime investment 2.quant value added fund- 3 lac 3.quant infrastructure fund- 2 lac Alk are onetime investment , recommendations expedited
Ans: It's great to see your proactive approach to investing! Let's delve into your investment choices:

Let's adjust your investment strategy to mitigate risks and enhance potential returns:

Mahindra Manulife Midcap Fund - Direct Plan: With a one-time investment of 5 lakhs, this fund offers exposure to mid-cap stocks, which carry higher volatility but also potential for growth over the long term. However, consider diversifying into a diversified equity fund to spread risk across various sectors and market caps.
Quant Value Added Fund: Allocating 3 lakhs to this fund reflects a focus on value investing principles, which can be rewarding but also involves risks. Diversifying into a diversified equity fund can provide a broader exposure to quality stocks and reduce concentration risk.
Quant Infrastructure Fund: While investing 2 lakhs in an infrastructure fund may seem appealing due to growth prospects, it's essential to acknowledge the inherent risks associated with thematic funds. These funds are more susceptible to sector-specific risks and economic cycles. Consider reallocating this amount to a diversified equity fund for better risk management.
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.

...Read more

Ramalingam

Ramalingam Kalirajan  |1486 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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Sir, I am 59 years old, will retire in January 2025, I want to make SWP of Rs.30 lakh so that I can get Rs 20K monthly pension. Which fund I will select and how to invest ?
Ans: As you approach retirement, it's essential to plan for a steady income stream to support your lifestyle. Here's how you can achieve your goal of setting up a Systematic Withdrawal Plan (SWP) to generate Rs. 20,000 monthly pension from a Rs. 30 lakh corpus:

• Given your age and the need for stable income, consider investing in debt mutual funds or conservative hybrid funds.
• These funds typically invest in fixed-income securities like bonds and offer regular income through dividends or SWPs.

• Look for funds with a track record of consistent returns and a focus on capital preservation.
• Conservative debt funds or monthly income plans (MIPs) may be suitable options for generating steady income while minimizing risk.

• Calculate the SWP amount needed to generate Rs. 20,000 monthly pension from your Rs. 30 lakh corpus.
• Consider factors such as expected returns, withdrawal frequency, and fund expenses when determining the SWP amount.

• It's crucial to review your investment portfolio regularly and adjust your SWP amount as needed based on market conditions and your financial goals.
• Consult with a Certified Financial Planner to help you select the appropriate mutual fund and set up the SWP to meet your retirement income needs.

• Ensure you have a contingency fund set aside for emergencies to cover unexpected expenses during retirement.
• Additionally, consider diversifying your retirement income sources, such as annuities or senior citizen savings schemes, for added financial security.

By carefully selecting the right mutual fund and setting up a disciplined SWP strategy, you can create a reliable income stream to support your retirement lifestyle. Stay focused on your financial goals and consult with a financial advisor for personalized guidance tailored to your needs. Best wishes for a happy and fulfilling retirement!

...Read more

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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