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Vivek Lala  |301 Answers  |Ask -

Tax, MF Expert - Answered on May 18, 2023

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Vinit Question by Vinit on May 13, 2023Hindi
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Sir.. I want to invest 10 Lakh Lumpsum in Mutual Funds and also want to start SIP of 50 K/month.. Please suggest funds to inverst both lumpsum and SIP.. Looking for 5 Yrs horizon for both .. Thanks in advance

Ans: Hello,
Assuming your age is 30-35 years and your time horizon is 10yrs+ , you can select the following funds
Small cap - 25%
Mid cap 25%
Large and mid cap - 15%
Multicap - 10%
Consumption fund - 10%
As per choice - 15%

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.
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

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Mutual Funds, Financial Planning Expert - Answered on Sep 04, 2024

Asked by Anonymous - Sep 03, 2024Hindi
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I am 37 years old, investing in mutual funds via monthly SIP for the past 4 years. I want to invest 50k each, as lumpsum amount in 3 different funds. Please suggest the most suitable funds for this. My investment horizon is 5 years.
Ans: Your decision to invest Rs. 50,000 each in three different mutual funds shows strong commitment to wealth creation. With a 5-year investment horizon, it is important to pick funds that align with your goals and risk appetite. Given your 37 years of age, it's also essential to balance growth and stability.

Evaluating the Type of Funds
Equity-Oriented Funds: These funds have the potential for higher returns. However, they also come with higher volatility, especially over shorter periods like 5 years. If your risk tolerance is high, you might consider allocating a portion to equity funds.

Debt-Oriented Funds: These are relatively safer and offer more stable returns. They are less volatile and provide better protection in case the markets turn unfavorable. Considering your 5-year horizon, debt-oriented funds might offer the needed balance.

Hybrid Funds: These funds blend equity and debt, offering a balanced approach. They might be suitable for someone looking for moderate growth with controlled risk. Given your 5-year timeline, hybrid funds could provide a smoother ride.

Suggested Allocation Strategy
Equity Funds: Invest in one equity-oriented fund if you have a high-risk tolerance. Focus on funds that have a proven track record and can deliver good returns over 5 years. However, remember that equity funds are more suitable for long-term goals of at least 7-10 years.

Debt Funds: Allocate a portion to a debt-oriented fund to provide stability. These funds offer relatively safer returns and are more predictable over a shorter period. They help balance your portfolio and provide the required cushion.

Hybrid Funds: Consider investing in a hybrid fund for a balanced approach. These funds offer the benefits of both equity and debt, making them suitable for a 5-year horizon. Hybrid funds could serve as a middle ground, providing growth with controlled risk.

Avoiding Index Funds
Index funds are often considered for passive investing, tracking specific indices. However, with your 5-year horizon, actively managed funds might be more appropriate. They offer the potential for higher returns as fund managers actively select securities to outperform the market.

The Disadvantages of Direct Funds
Direct funds might appear attractive due to their lower expense ratios. However, investing directly requires more time and expertise. Regular funds through a Certified Financial Planner (CFP) offer professional guidance. This helps optimize your investment strategy and adjust your portfolio as needed. The benefits of personalized advice often outweigh the marginal cost difference.

Final Insights
Diversify Wisely: Allocate across different fund types to balance risk and reward. Diversification is key to managing risk over your 5-year investment horizon.

Regular Review: Regularly review your portfolio to ensure it aligns with your goals. Market conditions can change, and adjustments might be needed.

Seek Professional Guidance: Partnering with a Certified Financial Planner (CFP) will help tailor your investments to your specific needs and risk tolerance. Professional guidance ensures that your portfolio is optimized and aligned with your financial goals.

Your goal of investing Rs. 50,000 each in three funds is commendable. By choosing the right mix of funds and staying disciplined, you are on the path to achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Relationships Expert, Mind Coach - Answered on Nov 07, 2024

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Anu Krishna  |1281 Answers  |Ask -

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Help me!!! 1.I'm starting new "work" on my own(challenging for me) but my mind says quit it, be quite & do nothing. I myself don't know that wether the result of work will be +ive or uncompleted like alws. 2. My mind has become like order seeker type, when someone orders me, I do those things with dedicated(but sad from inside) manner. But when myself will try something different(which i fear, but necessary) then. "I QUITS IT" & sometimes I don't even start. 3. I'm like stuck no clue what/whom I want to do in life, I'm in cllg(1 yr) doing (CSE) ,. 4. I want to do/try (sports,talking girls,study,stocks,coding..) many things, but myself, my thoughts(overthinker), R like just be in the place where u are[confused,po*n,think about past/future(being billio..re,olympics..), girl (that u liked & never talked), abusive/beating self,.. sometimes feels like end life, but don't hv courage for that also.. 5. I tried self help books, spirituality, god, self affirmation, writing... & thay affected me(sometimes) but for only some time, then again that devil me comes up &these things never get completed. As no one in my family knows about all these, so that's Y ,I hv to fight/loose/try again, the battles with myself.
Ans: Dear Harsh,
If in the past you have had the urge to QUIT, how is this time going to be different? This is not to discourage you from taking up 'new work' but pointing out that there is some amount of work that you need to put to clear the mind out of blockages.
-What is limiting you?
- What is the reason for putting off things?
- What comes first to the mind when you start something new?
Also, focus on one thing at a time; study and go deep into it...what's this thing with work? I don't understand. When the mind is unsettled, take one thing/activity, pursue it and finish it. It could simply be studying for Year 1 of your college...just only do that...once your mind is trained in completing an activity, you can add another one the next year along with studying and then pursue both...it could be some sport and studying...then the next year, you could add a third activity. This is called 'training the mind in discipline'. Discipline will make sure that you start and finish things...So, go slow and do one thing at a time.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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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