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Ramalingam

Ramalingam Kalirajan  |7281 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 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 - Dec 27, 2023Hindi
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Hi Sir, I do have a home loan of 30 lac and it will be paid via monthly emi till next 22 years. After paying my emi, other necessary things I do get to save around 4k to 5k monthly. Please suggest in which SIP I can invest so that after 10 years I can pay my loan.

Ans: Considering your goal to pay off your home loan in 10 years through SIPs, you can invest in equity mutual funds for potentially higher returns. Opt for SIPs in diversified equity funds or balanced funds to balance risk and return. Regularly review and adjust your SIPs to align with your goal 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  |7281 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 22, 2024

Money
Hi..I am 41 and currently having a home loan of around 50 lakhs...I am planning to repay the loan within next 5 years..I can invest around 50000 per month for the same...pls suggest which type of funds should I do SIP in? Flexi Cap or Agressive Hybrid funds are advisable in this case? I would want to continue investing in these SIPs even after my loan is repaid as my long term investment..Thanks in advance!!
Ans: Your plan to repay your home loan of ?50 lakhs within the next five years is commendable. Investing ?50,000 monthly in Systematic Investment Plans (SIPs) to achieve this goal, while also considering long-term investments, requires strategic planning. Let's explore the best options for your needs.

Understanding Your Financial Goals
Short-Term Goal
Your short-term goal is to repay your home loan within five years. This requires a focused investment strategy that balances risk and returns.

Long-Term Investment
After repaying your loan, you plan to continue investing in SIPs for long-term wealth creation. This necessitates choosing funds that can adapt to both short-term and long-term financial goals.

Investment Options: Flexi Cap vs Aggressive Hybrid Funds
Flexi Cap Funds
What Are Flexi Cap Funds?
Flexi cap funds invest in companies of different market capitalizations—large, mid, and small caps—without any predefined proportion. Fund managers have the flexibility to change the investment mix based on market conditions.

Benefits of Flexi Cap Funds
Diversification: Flexi cap funds offer a diversified portfolio, reducing risk while aiming for moderate to high returns.
Adaptability: Fund managers can adapt to market trends, optimizing returns.
Long-Term Growth: Suitable for long-term investment due to the potential for high growth across different market caps.
Aggressive Hybrid Funds
What Are Aggressive Hybrid Funds?
Aggressive hybrid funds invest in a mix of equities (65-80%) and debt instruments (20-35%). This combination aims to balance high returns from equities and stability from debt.

Benefits of Aggressive Hybrid Funds
Balanced Risk: The equity portion drives growth, while the debt portion reduces volatility.
Stability: Provides more stability compared to pure equity funds, especially during market downturns.
Consistent Returns: Suitable for investors seeking consistent returns with moderate risk.
Evaluating Suitability for Your Goals
Short-Term Goal: Home Loan Repayment
Flexi Cap Funds
Flexi cap funds can offer high returns due to their dynamic investment strategy. However, they come with higher risk, which might not align with a five-year horizon focused on loan repayment.

Aggressive Hybrid Funds
Aggressive hybrid funds balance growth and stability, making them more suitable for a five-year investment aimed at repaying a home loan. The debt component reduces risk, offering more predictable returns.

Long-Term Goal: Continued Investment
Flexi Cap Funds
For long-term investment, flexi cap funds are highly suitable. Their ability to invest across market capitalizations can capture growth in various sectors and companies over time.

Aggressive Hybrid Funds
Aggressive hybrid funds can also be suitable for long-term investment, providing a balanced approach to growth and stability. They can be a good option for conservative investors seeking steady returns.

Recommended Strategy
Initial Focus: Aggressive Hybrid Funds
Reasoning
Start with aggressive hybrid funds for the next five years to repay your home loan. This strategy offers a balance of growth and stability, reducing the risk of market volatility impacting your repayment plan.

Transition to Flexi Cap Funds
Post-Loan Repayment
Once your loan is repaid, consider transitioning a portion of your investment into flexi cap funds. This will help capture higher growth potential for your long-term goals.

Continued Investment Strategy
Diversification
Maintain a diversified portfolio by investing in both aggressive hybrid funds and flexi cap funds. This approach balances risk and returns, catering to your evolving financial needs.

Additional Considerations
Regular Monitoring and Rebalancing
Importance
Regularly monitor your investments and rebalance your portfolio as needed. Market conditions and personal financial goals can change, requiring adjustments to your investment strategy.

Consult a Certified Financial Planner
Professional Advice
Consulting a Certified Financial Planner (CFP) can provide personalized advice tailored to your financial situation. A CFP can help optimize your investment strategy and ensure alignment with your goals.

Conclusion
Investing ?50,000 monthly in SIPs to repay your home loan and continue long-term investments requires a balanced approach. Aggressive hybrid funds are advisable for the initial five-year period focused on loan repayment. After repaying the loan, transitioning to flexi cap funds can capture higher growth potential for long-term wealth creation. Regular monitoring and professional advice will ensure your investment strategy remains effective and aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7281 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - May 17, 2024Hindi
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Money
Hi..I am 41 and currently having a home loan of around 50 lakhs...I am planning to repay the loan within next 5 years..I can invest around 50000 per month for the same...pls suggest which type of funds should I do SIP in? Flexi Cap or Agressive Hybrid funds are advisable in this case? I would want to continue investing in these SIPs even after my loan is repaid as my long term investment.
Ans: Investment Strategy for Home Loan Repayment and Long-Term Wealth Creation
Assessing Your Financial Goals
At 41, with a goal to repay a home loan of 50 lakhs in the next 5 years while continuing to invest for the long term, you need an investment strategy that balances stability and growth. You can invest 50,000 per month to achieve these objectives.

Recommended Investment Approach
Flexi Cap Funds for Growth and Flexibility:

Diversification: Flexi cap funds provide the flexibility to invest across market capitalizations (large, mid, and small caps) based on market conditions and fund manager expertise.
Growth Potential: These funds can adjust allocations dynamically to capture growth opportunities, making them suitable for both medium and long-term investments.
Risk Management: The diversified nature helps in managing risks, offering a balanced approach suitable for investors looking for growth with moderate risk.
Aggressive Hybrid Funds for Balanced Risk:

Equity-Debt Mix: Aggressive hybrid funds typically invest 65-80% in equities and the rest in debt instruments, providing a balance of growth and stability.
Moderate Risk: These funds are less volatile than pure equity funds due to their debt component, making them suitable for medium-term goals like loan repayment.
Stable Returns: The debt portion helps in cushioning against market volatility, providing relatively stable returns.
Suggested Strategy
Initial Focus on Debt Reduction:

Higher Allocation to Aggressive Hybrid Funds: For the next 5 years, prioritize aggressive hybrid funds to balance risk while aiming for steady returns. This will help you build a corpus for loan prepayments.
Example Allocation: Invest 30,000 per month in aggressive hybrid funds and 20,000 per month in flexi cap funds. This balance ensures that you can manage volatility while aiming for decent growth.
Post Loan Repayment Strategy:

Increase Allocation to Flexi Cap Funds: Once the home loan is repaid, you can shift a larger portion of your SIPs towards flexi cap funds to maximize growth for long-term goals.
Continued SIPs: Continue with the SIPs to build wealth over the long term, adjusting the allocation based on your risk appetite and market conditions.
Monitoring and Adjustment
Regular Review: Periodically review the performance of your funds and make adjustments if necessary. Ensure that your portfolio aligns with your financial goals and risk tolerance.
Rebalancing: Rebalance your portfolio annually to maintain the desired allocation between flexi cap and aggressive hybrid funds.
Conclusion
By investing in a mix of aggressive hybrid and flexi cap funds, you can effectively manage the repayment of your home loan while continuing to build long-term wealth. This strategy balances risk and growth, ensuring financial stability and growth potential.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7281 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Money
Hi Sir/Mam Could you please help me out to close my housing loan of 39L in 10 years. Kindly suggest me regarding investment in SIP how/which SIP/ how much should I invest regularly
Ans: To close your housing loan of Rs. 39 lakhs in 10 years and to strategically invest in SIPs, we need a comprehensive plan that aligns with your financial goals, risk appetite, and time horizon. I appreciate your diligence in seeking a well-rounded financial strategy, and I am here to guide you through the process. Let’s break down the approach into clear, manageable steps:

Understanding Your Financial Position
Firstly, it’s essential to evaluate your current financial standing. This involves a detailed review of your income, expenses, existing investments, and liabilities. You earn Rs. 80,000 per month and have monthly expenses of Rs. 30,000. This leaves you with a disposable income of Rs. 50,000.

You have existing investments in mutual funds, stocks, PPF, NPS, and a car loan. Understanding this will help us allocate funds effectively towards your loan repayment and SIP investments.

Prioritizing Loan Repayment
Closing your housing loan in 10 years is a prudent financial decision. To achieve this, we need a disciplined repayment strategy. Here’s a step-by-step approach:

Increase EMI Payments:

The most straightforward way to close your loan faster is to increase your EMI payments. By increasing your EMI amount, you can reduce the principal faster, thus saving on interest costs. Allocate a portion of your disposable income towards higher EMI payments.

Make Lump Sum Payments:

Whenever you receive a bonus, incentive, or any windfall gain, channel it towards your home loan. This will significantly reduce the outstanding principal and the interest burden.

Consider Part Prepayments:

Set a goal to make part prepayments annually. This will also help in reducing the loan tenure and overall interest.

Review Loan Terms Regularly:

Periodically review the interest rates and terms of your loan. If you find a better deal with a lower interest rate, consider refinancing your loan.

Strategic Investment in SIPs
Investing in SIPs (Systematic Investment Plans) is an excellent way to build wealth over time. Here’s how you can approach SIP investments to achieve your financial goals:

Determine Investment Goals:

Clearly define your financial goals. These could be retirement planning, children’s education, or building a corpus for future needs. Having specific goals will help in selecting the right SIPs.

Assess Risk Tolerance:

Your risk tolerance will dictate the type of SIPs you should invest in. Since you have a 10-year horizon for loan repayment and longer for other goals, a balanced approach with a mix of equity and debt funds is advisable.

Choose Actively Managed Funds:

Actively managed funds, unlike index funds, are managed by professional fund managers who aim to outperform the market. They offer the potential for higher returns and flexibility in managing the portfolio based on market conditions.

Avoid Direct Funds:

Investing through regular funds with the help of a Certified Financial Planner (CFP) is beneficial. A CFP can provide professional advice, monitor your investments, and make necessary adjustments, ensuring your portfolio remains aligned with your goals.

Recommended Allocation for SIPs
Given your financial goals and current position, here’s a suggested allocation for your SIP investments:

Equity Funds:

Allocate a significant portion of your SIPs to equity funds. These include large-cap, mid-cap, and small-cap funds. Equity funds offer higher returns over the long term, essential for wealth creation.

Debt Funds:

Invest in debt funds to balance the risk. Debt funds provide stable returns and are less volatile compared to equity funds. This is crucial for preserving capital and providing liquidity.

Hybrid Funds:

Consider hybrid funds, which invest in a mix of equities and debt. They offer a balanced risk-return profile, suitable for moderate risk tolerance.

Detailed SIP Strategy
Large-Cap Equity Funds:

Large-cap funds invest in well-established companies with a strong track record. They offer stability and steady returns. Allocate around 30% of your SIPs to large-cap funds.

Mid-Cap Equity Funds:

Mid-cap funds invest in medium-sized companies with high growth potential. They are slightly riskier than large-cap funds but can provide higher returns. Allocate around 20% to mid-cap funds.

Small-Cap Equity Funds:

Small-cap funds invest in smaller companies with significant growth potential. They are riskier but can yield high returns. Allocate around 10% to small-cap funds.

Hybrid Funds:

Hybrid funds offer a balanced mix of equity and debt, suitable for moderate risk tolerance. Allocate around 20% to hybrid funds.

Debt Funds:

Debt funds provide stability and regular income. They are less risky and suitable for short to medium-term goals. Allocate around 20% to debt funds.

SIP Amount and Frequency
Monthly SIP Investment:

Based on your disposable income and financial goals, a monthly SIP investment of Rs. 25,000 is feasible. This amount can be distributed across the suggested fund categories.

Automatic Investments:

Set up automatic SIP investments to ensure consistency and discipline. This will help in averaging the cost of investments over time.

Monitoring and Review
Regularly monitor your SIP investments and loan repayment progress. Here’s how you can stay on track:

Annual Reviews:

Conduct annual reviews of your investment portfolio. Assess the performance of your SIPs and make necessary adjustments based on market conditions and your financial goals.

Rebalance Portfolio:

Rebalance your portfolio periodically to maintain the desired asset allocation. This ensures that your investments remain aligned with your risk tolerance and goals.

Stay Informed:

Keep yourself informed about market trends and economic developments. This will help you make informed decisions and adjust your investment strategy as needed.

Final Insights
Closing your housing loan in 10 years and building a robust investment portfolio through SIPs requires discipline and strategic planning. By increasing your EMI payments, making part prepayments, and investing in a balanced mix of equity and debt funds, you can achieve your financial goals.

Remember, investing through regular funds with the guidance of a Certified Financial Planner offers significant benefits. A CFP can provide professional advice, monitor your investments, and make necessary adjustments to ensure your portfolio remains aligned with your goals.

Stay disciplined, review your investments regularly, and make informed decisions to secure a financially sound future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  |783 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 05, 2024Hindi
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Money
I am having a home loan of 1200000 @8.7% for 218 per month my emi would be 10972/- PM I am also having the greed of PMAY subsidy as my loan sanctioned after 01.09.2024 and my conditions are fulfilling the criterias, so I am not going to pay any amount in principal upto subsidy completion I will start paying principal other than emi after getting full subsidy amount hopefully upto 31/03/2029 That's why I am planning to invest about rs 6000/- per month other than emi in sip or ETF or wherever the best place you suggest. please suggest where can I invest this to close the loan early also share some good investment funds of ETF and sip where I can hope to get best returns. At the moment I am not familiar to ETF specially only heard about some advantages. Need your advice
Ans: Hello;

ETFs are Exchange Traded Funds, a kind of index mutual fund traded on the exchanges.

They have low costs because they mimic the underlying index.

However their are some negative aspects as well:

You need a trading and demat account to buy and hold ETFs (annual charges to maintain demat account)

Although ETF costs are lower, brokerage and all statutory levies as on direct stocks are applicable.

Barring popular ETFs(Nippon India Nifty 50BeES, Gold BeES, Nifty Bank BeES) most other ETFs have low liquidity hence the quoted price may be different from NAV of the ETF(impact cost).

You may do an monthly sip of 6 K in HDFC balanced advantage fund for a period of 5 years. After 5 years you may expect a corpus of 5.09 L considering a return of 13%.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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Dentist - Answered on Dec 19, 2024

Asked by Anonymous - Dec 12, 2024Hindi
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Doctor, I’ve recently noticed that my gums bleed a little when I brush, and they feel a little tender, especially around the back. I did some quick research online, and it sounds like it could be gingivitis, but I’m not really sure. I’ve always been pretty regular with brushing, but I might not be doing it thoroughly, and I don’t always floss. I am 38 and was wondering, is it possible for me to treat or even cure gingivitis by myself at home? Should I just start using a specific mouthwash or change my brushing routine? Or is this something I should see a dentist about right away? I’m hoping it’s something simple I can handle without needing a visit to the dentist.
Ans: Mild gingivitis can be treated and managed at home with good oral hygiene practices and some natural remedies. However, if the condition persists or worsens, it's essential to consult a dentist for professional treatment.

Home Treatment and Prevention:

1. *Brushing and Flossing*: Brush your teeth at least twice a day and floss once a day to remove plaque and food particles.
2. *Saltwater Rinse*: Rinse your mouth with warm saltwater several times a day to reduce inflammation and kill bacteria.
3. *Antibacterial Mouthwash*: Use a commercial hydrogen peroxide/chlorhexidine gluconate mouthwash to kill bacteria and reduce inflammation.
4. *Dietary Changes*: Eat a balanced diet rich in fruits, vegetables, and whole grains, and avoid sugary and processed foods.
5. *Vitamin C* plays a significant role in gingival health. So make sure you have fresh citrus fruits (preferably unrefrigerated) on a regular basis. The other option is to take Vitamin C supplements.

When to Consult a Dentist:

1. *Persistent Gingivitis*: If your gingivitis persists despite good oral hygiene practices and home remedies.
2. *Severe Symptoms*: If you experience severe symptoms like bleeding gums, pain, or swelling.
3. *Gum Recession*: If you notice gum recession or exposed roots.
4. *Loose Teeth*: If your teeth become loose or mobile.


Remember, while home treatment and natural remedies can help manage mild gingivitis, regular dental check-ups and professional cleanings are essential to prevent and treat gum disease.

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Ravi

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Dating, Relationships Expert - Answered on Dec 19, 2024

Asked by Anonymous - Dec 19, 2024Hindi
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I 32F have been dating my boyfriend for about a year now. He has a young daughter from his previous marriage, and they share custody. I’ve been trying to get along with his ex-wife, but it’s been really difficult. She often contacts him for things that aren’t urgent and it feels like she’s overstepping into our relationship, especially when it comes to decisions about their daughter. I understand that they need to co-parent, but I feel like I’m always left out or made to feel uncomfortable. My boyfriend says he tries to balance everything, but sometimes I feel like his ex-wife has more influence in his life than me. How can I set healthy boundaries with her without causing tension, and how can I talk to my boyfriend about how I’m feeling without sounding like I’m being controlling?
Ans: Dear Anonymous,
I understand that you are in a tricky spot but it is important to understand that when it comes to their child, they have the right to make decisions and ignore everyone else's, even yours. You should keep your relationship and their co-parenting situation separate. Having said that, if you think your BF's ex is overstepping, communicate that to your partner, while letting him know that it bothers you and might even create friction in your relationship. An open and honest discussion is the only way around it. If expressing your discomfort is causing tension or considered ‘controlling,’ then you need to rethink the relationship.

I am sure your partner is truly trying to balance things, but since he is dating you, he should be aware of the areas where that balance is lacking. Communication is the only way.

Hope this helps.

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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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