Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 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
Pal Question by Pal on Apr 15, 2024Hindi
Listen
Money

I want to invest 30 lakhs in long term (30 to 35 years)for wealth creation, Can you please suggest me some good MF. Thanks.

Ans: Investing 30 lakhs for 30 to 35 years offers a great opportunity for wealth creation. Given your long-term horizon, consider diversifying your investment across various categories like large-cap, mid-cap, and multi-cap funds to balance growth potential and risk. Here are some categories you might consider:

Large-cap Funds: These funds invest in well-established companies, offering stability.
Mid-cap Funds: These focus on mid-sized companies with high growth potential.
Multi-cap Funds: These provide flexibility to invest across market caps based on market conditions.
Remember, while selecting funds, it's essential to consider factors like fund performance, expense ratio, and fund manager's track record. Regularly reviewing and adjusting your portfolio will help ensure it aligns with your long-term goals. Consulting a financial advisor can provide personalized guidance tailored to your needs. Happy investing!
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 10, 2024Hindi
Listen
Money
I am 50... I want to invest 10k every month in different mf. Can you suggest
Ans: Crafting a Diversified Mutual Fund Investment Plan
Investing in mutual funds can be a prudent strategy to build wealth over the long term. Let's design a portfolio that suits your needs.

Understanding Your Investment Objectives
Genuine Compliments: It's inspiring to see your commitment to investing even at the age of 50. Your proactive approach towards securing your financial future is commendable.

Empathy and Understanding: I understand that at this stage of life, you may have specific financial goals and risk tolerance levels that we need to consider while designing your investment plan.

Assessing Investment Options
Benefits of Actively Managed Funds: Actively managed funds offer the expertise of professional fund managers who actively select investments to outperform the market.

Disadvantages of Index Funds: While index funds offer low fees, they passively track a market index, limiting potential for outperformance and customization.

Regular Funds Investing through MFD with CFP Credential: Working with a Certified Financial Planner (CFP) who specializes in mutual funds can provide personalized guidance and ongoing portfolio management.

Building a Diversified Portfolio
Equity Funds: Allocate a portion of your investment to equity funds to capture the potential for long-term capital appreciation, albeit with higher volatility.

Debt Funds: Diversify your portfolio with debt funds to provide stability and generate regular income, especially as you approach retirement age.

Balanced Funds: Consider investing in balanced funds, which provide a mix of equity and debt exposure, suitable for investors seeking a balanced risk-return profile.

Conclusion
By diversifying your investments across different mutual fund categories and seeking guidance from a Certified Financial Planner, you can build a robust portfolio that aligns with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

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

Listen
Money
Hi sir right now 22 I want to invest in MF around 2500 per month for next 28 years suggest some best MF
Ans: Investing in mutual funds is a smart decision. It's a great way to build wealth over time. Starting at 22 gives you a long investment horizon, which is advantageous.

Benefits of Mutual Funds
Diversification: Spreading risk across various assets.
Professional Management: Managed by experienced fund managers.
Liquidity: Easy to buy and sell.
Convenience: Suitable for different financial goals.
Evaluating Investment Options
Avoid index funds. They often track market indices passively. This means lower returns compared to actively managed funds.

Disadvantages of Index Funds:

Lower Flexibility: Limited to the index performance.
No Active Management: No adjustments based on market conditions.
Potential for Mediocre Returns: Follows the average market performance.
Instead, consider actively managed funds. They aim to outperform the market. Professional fund managers adjust the portfolio based on market trends.

Benefits of Actively Managed Funds
Higher Return Potential: Aims to beat the market.
Professional Management: Fund managers actively monitor and adjust the portfolio.
Flexibility: Can adapt to market changes.
Regular Funds vs Direct Funds
Investing through a Certified Financial Planner (CFP) has distinct advantages over direct funds.

Disadvantages of Direct Funds:

Lack of Professional Guidance: No expert advice.
Time-Consuming: Requires constant monitoring.
Higher Risk: Without professional insights, the risk increases.
Benefits of Regular Funds with CFP:

Professional Advice: Access to expert insights.
Better Decision Making: Informed investment choices.
Regular Monitoring: Constant portfolio reviews and adjustments.
Risk Management: Strategies to mitigate potential risks.
Recommended Strategy
Diversified Portfolio: Invest in a mix of large-cap, mid-cap, and small-cap funds.
Systematic Investment Plan (SIP): Invest Rs 2500 monthly via SIP.
Long-term Horizon: Continue investing for the next 28 years for optimal returns.
Steps to Start
Choose a Reliable Fund House: Ensure credibility and good track record.

Consult a Certified Financial Planner: Get personalized advice.

Start SIP: Automate your monthly investments.

Review Regularly: Monitor and adjust based on performance.

Final Insights
Starting early with mutual funds is commendable. By avoiding index funds and opting for actively managed funds, you can aim for better returns. Investing through a CFP provides professional guidance, ensuring informed decisions and effective risk management. Keep investing consistently, review periodically, and stay focused on your long-term goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7159 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

Asked by Anonymous - Jul 07, 2024Hindi
Listen
Money
Hi, I have around 30 lakhs to invest. I want to invest for long time.can you guide me which MFs to invest for highest return.
Ans: Investing Rs. 30 lakhs is a significant decision. It's essential to align your investments with your long-term goals. Before recommending specific mutual funds, let's break down a few critical aspects. This approach ensures you maximize returns while managing risks effectively.

Time Horizon and Risk Tolerance
A long-term investment horizon is beneficial. It allows you to benefit from the power of compounding. However, it's crucial to assess your risk tolerance. Are you comfortable with high-risk, high-reward investments? Or would you prefer a more balanced approach? Understanding this will help in choosing the right mutual funds.

The Role of Diversification
Diversification is key to managing risk. By spreading your investments across different types of funds, you can reduce the impact of market volatility. Equity mutual funds are often recommended for long-term investments. But, it’s essential to diversify across large-cap, mid-cap, and small-cap funds.

Importance of Actively Managed Funds
Many investors consider index funds or ETFs. However, these may not always be the best option for high returns. Actively managed funds, guided by experienced fund managers, can potentially outperform the market. These funds adapt to changing market conditions, unlike index funds that strictly follow a benchmark.

The Disadvantages of Index Funds
Index funds have lower expense ratios, but they lack flexibility. They mirror the market, meaning they can’t take advantage of opportunities that arise during market fluctuations. Over the long term, actively managed funds often deliver better returns, especially in the Indian market where active management can exploit market inefficiencies.

Regular vs. Direct Mutual Funds
You might also be considering direct mutual funds. While direct funds have lower expense ratios, they require continuous monitoring. A Certified Financial Planner (CFP) can guide you through regular mutual funds. These funds come with the added advantage of expert advice and periodic reviews, ensuring your portfolio stays aligned with your goals.

Benefits of Professional Guidance
Investing through a Certified Financial Planner (CFP) ensures that your investments are professionally managed. CFPs provide valuable insights, periodic reviews, and rebalancing strategies. This service is especially crucial in a dynamic market like India. A well-managed portfolio, guided by a CFP, can outperform self-managed investments.

Risk Management Strategies
While aiming for the highest returns, it's important not to ignore risk management. High-risk funds can offer high returns, but they also come with potential losses. A balanced approach, with a mix of equity, debt, and hybrid funds, can help manage this risk.

Asset Allocation for Long-Term Investment
For long-term goals, a higher allocation to equity funds is typically recommended. However, it’s wise to include some debt funds for stability. This balanced approach ensures your portfolio can weather market volatility while aiming for higher returns.

The Importance of Regular Reviews
Investing is not a one-time activity. Regular reviews and rebalancing are necessary to ensure your portfolio remains aligned with your goals. Market conditions change, and so should your investment strategy. A CFP can help with these regular reviews, ensuring that your investments stay on track.

Consider Tax Implications
Mutual funds are tax-efficient, but it’s important to consider the tax implications of your investments. Long-term capital gains tax (LTCG) applies to equity mutual funds. Understanding the tax impact on your returns can help in planning your investments better.

Avoiding Investment Cum Insurance Policies
If you hold any investment cum insurance policies like ULIPs, it might be wise to reconsider. These policies often come with high charges and lower returns compared to mutual funds. Surrendering these policies and reinvesting in mutual funds could be more beneficial for long-term growth.

Reinvestment Strategy
If you have any existing investments, it’s worth reviewing them. Sometimes, surrendering low-performing investments and reinvesting in well-performing mutual funds can enhance your portfolio’s overall returns.

Finally
Investing Rs. 30 lakhs with a long-term horizon is an excellent strategy. However, the key to maximizing returns lies in choosing the right mix of funds, understanding market dynamics, and staying disciplined. Working with a Certified Financial Planner (CFP) can provide the professional guidance needed to navigate these decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |702 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 26, 2024

Listen
Money
Hi Experts, I seek your guidance on my mutual fund portfolio. Below are the details: Total Portfolio Details: - Total Invested Amount: ?15,76,159 - Current Value: ?19,35,234 - Total Returns: ?3,59,075 (+22.78%) - XIRR: 20.75% Monthly SIP Contribution: ?1,18,000 Breakdown of monthly SIP contributions across funds: 1. Parag Parikh Flexi Cap Fund Direct Growth – ?30,000 2. SBI Large & Midcap Fund Direct Plan Growth – ?15,000 3. SBI Magnum Mid Cap Fund Direct Plan Growth – ?20,000 4. Nippon India Large Cap Fund Direct Growth – ?30,000 5. Nippon India Small Cap Fund Direct Growth – ?7,500 6. ICICI Prudential Technology Direct Plan Growth – ?10,000 7. Quant Small Cap Fund Direct Plan Growth – ?7,500 8. HSBC Small Cap Fund Direct Growth – ?5,000 9. Edelweiss US Technology Equity Fund of Funds Direct Growth – ?5,000 Can you suggest if I am on track to create 5 CR corpus in 10 years I have ?25 lakh invested in a Fixed Deposit (FD) in my mother’s account, earning an interest rate of 7.75%, to generate tax-free returns. Additionally, I’m planning to purchase a plot worth ?30–50 lakh in the next 1–2 years. Is it a good idea to keep the money in FD for now, or are there better short-term investment options I should consider to maximize returns while keeping the funds accessible for my future purchase? Looking forward to your suggestions! Thank you!
Ans: Hello;

Your monthly sip value adds upto 1.3 L however you have claimed it to be 1.18 L. (Maybe a typo).

Existing corpus(19.35 L) and monthly sip (1.3 L) won't reach 5 Cr in 10 years.

You have two options to make it happen:

1. Increase monthly sip amount to 1.9 L.

2. Top-up current monthly SIP of 1.3 L by minimum 10% each year for 10 years.

Both ways will lead you to a corpus of 5 Cr over 10 years.

You may consider money market mutual funds for parking your funds for a 1 year horizon. Returns may be comparable to FD returns but with flexibility to withdraw anytime. They typically have low to moderate risk.

Happy Investing;
X: @mars_invest

...Read more

Nayagam P

Nayagam P P  |3928 Answers  |Ask -

Career Counsellor - Answered on Nov 26, 2024

Listen
Career
Is doing BBA + Law (Honors) from BITS Law is worth
Ans: Anju, prior to addressing the question, I would like to draw your attention to a recent article in 'The Times of India' which indicates that a majority of law graduates tend to favor employment in corporate settings over practicing in courts. Now, coming to your question, please note, BITS Law School's BBA + LLB (Hons) program is a 5-year program that combines business administration with legal studies. The program focuses on areas such as corporate law, intellectual property, business laws, and dispute resolution. The program offers a strong multidisciplinary approach, preparing students for careers in corporate law, legal consultancy, and management. Its strengths include a business + legal acumen curriculum, industry-driven curriculum, and a reputation for excellence in education and placement opportunities. However, it lacks the legacy and alumni network of top-tier law schools and can be expensive. Career opportunities include corporate and business law, management roles, consulting, entrepreneurship, academia/research, international arbitration, cyber and technology law, corporate governance, and intellectual property rights. The program is worth considering if you aim for a corporate or business law career, are comfortable with the cost and value of the BITS brand, and have excellent industry connections and internships. Build your profile well by the time you complete your BBA+LLB & improve your all other skills required. All the BEST for Your Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x