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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Mar 15, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Ardhendu Question by Ardhendu on Mar 14, 2023Hindi
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How do I generate 1 crore in 8 eight years

Ans: Hi Ardhendu, thank you for writing in. To create a corpus of 1 Crore in 8 years, you need to start monthly SIP's of Rs.64,000.

You can consider investing in:
1-Samco Flexicap Fund- Rs. 16,000
2-Edelweiss Nifty 100 Quality 30 Index Fund- Rs.16,000
3-DSP Quant Fund- Rs.16,000
4-HDFC Top 100 Fund- Rs.16,000

Stepping up the SIP amounts annually will help you achieve your goal faster and create a larger corpus over the long term.
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  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

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How to achieve 1 crore in 4 year
Ans: Setting the Goal: Achieving ?1 Crore in 4 Years
You have a goal to accumulate ?1 crore in 4 years. This is an ambitious target but achievable with a strategic approach.

Understanding Your Current Financial Situation
First, evaluate your current financial status. Assess your savings, existing investments, and monthly income. Knowing where you stand helps plan your path forward.

Developing a Strategic Investment Plan
A clear investment strategy is essential. Focus on high-growth investment options. Actively managed funds are recommended over index funds. Fund managers can make dynamic decisions to maximize returns.

Benefits of Actively Managed Funds
Actively managed funds have the potential to outperform the market. Skilled fund managers make informed decisions based on market trends. This can lead to higher returns compared to index funds, which simply track market performance.

Monthly Investment Commitment
Determine a monthly investment amount that aligns with your goal. Consistent investments through Systematic Investment Plans (SIPs) can build significant wealth over time. Calculate the required SIP amount to reach ?1 crore in 4 years.

Diversifying Your Portfolio
Diversification reduces risk and improves returns. A balanced mix of equity and debt funds is crucial. Equity funds offer higher growth potential, while debt funds provide stability and lower risk.

Monitoring and Adjusting Investments
Regularly review and adjust your investment portfolio. Market conditions and personal circumstances can change. Annual reviews with a Certified Financial Planner ensure your investments stay on track towards your goal.

Risk Management and Adaptability
Understand your risk tolerance and adjust your investments accordingly. As you get closer to your goal, consider shifting to lower-risk investments. This strategy protects your accumulated wealth from market volatility.

Professional Guidance
Seek advice from a Certified Financial Planner. Their expertise provides tailored investment strategies. They help optimize your portfolio to achieve your financial goals efficiently.

Staying Disciplined and Committed
Consistency is key to achieving your target. Stay disciplined with your monthly investments. Avoid withdrawing funds prematurely and stick to your investment plan.

Inflation Considerations
Inflation can erode the value of money over time. Ensure your investments grow at a rate that outpaces inflation. This ensures your ?1 crore target retains its purchasing power.

Emergency Fund and Insurance
Maintain an emergency fund separate from your investment portfolio. This fund covers unexpected expenses and ensures you don’t disrupt your investment plan. Adequate insurance, especially health insurance, protects against unforeseen medical costs.

Appreciating Your Progress
Your dedication to achieving ?1 crore in 4 years is commendable. Setting such an ambitious goal shows your commitment to financial security. Continue your efforts with confidence and regular guidance from a Certified Financial Planner.

Conclusion
Reaching ?1 crore in 4 years requires a strategic approach. Focus on high-growth investments, maintain regular reviews, and stay disciplined. With professional guidance and commitment, you can achieve your financial target.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

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My monthly income is 45000. How to achieve 1 Crore. How much time is required
Ans: Current Financial Situation

You have a monthly income of Rs. 45,000.

Your goal is to achieve a corpus of Rs. 1 crore.

Setting a Realistic Timeline

Achieving Rs. 1 crore requires disciplined saving and investing.

The timeline depends on your savings rate and investment returns.

Higher returns can shorten the timeline.

Monthly Savings and Investments

You need to save and invest a portion of your income.

Aim to save at least 20-30% of your income monthly.

This means setting aside Rs. 9,000 to Rs. 13,500 each month.

Choosing the Right Investments

Mutual funds are a good option for long-term growth.

Consider equity mutual funds for higher returns.

Equity funds can offer 10-12% returns over the long term.

Avoiding Index Funds

Index funds track the market passively.

They lack active management, which can limit returns.

Actively managed funds can outperform and offer better growth.

Disadvantages of Direct Funds

Direct funds seem cheaper but require more effort.

Regular funds, through a Certified Financial Planner, offer professional management.

They provide tailored advice and ongoing support.

Benefits of SIPs

Systematic Investment Plans (SIPs) help in disciplined investing.

They allow you to invest a fixed amount regularly.

SIPs average out market volatility over time.

Calculating the Time Required

If you invest Rs. 10,000 per month in equity funds with 10% returns:

You can achieve Rs. 1 crore in about 15-18 years.

This is a simplified estimate and can vary.

Diversifying Investments

Don’t put all your money in one type of investment.

Diversify between equity, debt, and hybrid funds.

This reduces risk and balances returns.

Tax Efficiency

Invest in tax-efficient instruments to maximize returns.

Equity mutual funds have favorable tax treatment.

Long-term capital gains are taxed at a lower rate.

Monitoring and Adjusting

Review your investments regularly.

Adjust your portfolio based on performance and goals.

Seek guidance from a Certified Financial Planner.

Final Insights

Achieving Rs. 1 crore requires disciplined saving and investing.

Start early, choose the right investments, and stay committed.

A diversified portfolio and professional guidance can help you reach your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

...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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