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

Ramalingam Kalirajan  |10870 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 03, 2025

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 - Oct 03, 2025Hindi
Money

Sir I want to invest money in SIP...so can you suggest me which sip is better for Long term.

Ans: You have done a wonderful job by choosing SIP for your long-term wealth creation. This step shows discipline and vision. Many people delay such decisions. You have taken the right path early. That is truly appreciable.

Now let me give you a detailed 360-degree perspective.

» Why SIP for Long Term

– SIP creates wealth by regular disciplined investing.
– It helps average the cost when markets rise or fall.
– You build a habit of saving every month.
– It allows compounding to work powerfully over years.
– It reduces stress of timing the market.

SIP is one of the most simple and effective ways to invest. Over a long horizon, it builds a strong financial foundation.

» Importance of Goal Clarity

– Define your goals first before investing.
– Goals can be retirement, children’s education, or wealth building.
– When goals are clear, choosing the right fund type becomes easy.
– A goal-based plan ensures you don’t withdraw money midway.

Without goals, SIP is only a habit. With goals, SIP becomes a strategy.

» Active Funds vs Index Funds

Many investors get attracted to index funds due to lower cost. But cost is not the only factor.

– Index funds just copy the market. They don’t aim to beat it.
– In volatile markets, they fall equally with no defence.
– No professional expertise is used for stock selection.
– You get average returns, not superior ones.

On the other hand, actively managed funds are guided by fund managers.

– Experts study companies and choose better opportunities.
– Funds can avoid weak sectors in falling markets.
– Potential to beat market returns in the long term.
– Active risk management brings better wealth growth.

So for long-term SIP, active mutual funds are far more rewarding than index funds.

» Role of Diversification

– Don’t put all SIP money in one type of fund.
– Diversify across equity and debt depending on your risk profile.
– Diversification helps reduce risk while aiming for higher growth.
– Different goals may need different types of funds.

Equity SIP works best for long-term goals like retirement. Debt SIP works for medium-term safety needs.

» Regular Funds vs Direct Funds

Many investors believe direct funds are better due to lower cost. But they ignore hidden disadvantages.

– In direct funds, you don’t get professional advice.
– Wrong choice of fund can cost more than small savings in expense ratio.
– You may panic during market fall and stop SIP without guidance.
– Monitoring and rebalancing becomes your burden.

With regular funds through a Certified Financial Planner:

– You get proper fund selection matched with goals.
– A planner monitors your portfolio and makes changes when required.
– You stay disciplined during market ups and downs.
– Mistakes get avoided and wealth compounds steadily.

The value of correct advice is much higher than small cost savings.

» Time Horizon and Patience

– SIP works best when continued for long term.
– Minimum 7 to 10 years gives best results.
– Short-term market fall should not disturb you.
– Compounding needs time to show real impact.

Wealth creation is like growing a tree. You plant today, water regularly, and wait patiently.

» Risk Profile Assessment

– Every investor has a different risk tolerance.
– Aggressive investors can choose higher equity allocation.
– Conservative investors should mix debt with equity.
– Risk profile changes with age and life stage.

So always align SIP selection with your risk appetite. This ensures you don’t withdraw early.

» Tax Impact on SIP

Equity mutual funds:
– Short-term gains (less than one year) taxed at 20%.
– Long-term gains above Rs 1.25 lakh taxed at 12.5%.

Debt mutual funds:
– Both short and long-term gains taxed as per your income slab.

Tax efficiency is an important part of planning. Choosing the right fund mix can save you money.

» Common Mistakes to Avoid

– Stopping SIP when markets fall. That is the worst mistake.
– Chasing last year’s top-performing fund blindly.
– Over-diversifying with too many funds.
– Ignoring review and rebalancing.
– Mixing insurance and investment in one product.

Avoiding these mistakes can boost returns more than chasing new trends.

» Review and Rebalancing

– Reviewing once a year is important.
– Some funds may underperform and need replacement.
– Asset allocation may drift with market moves.
– Rebalancing keeps portfolio in line with goals.

A Certified Financial Planner ensures this happens smoothly.

» Emotional Discipline

– Market will always have ups and downs.
– Greed and fear disturb most investors.
– SIP requires patience and trust in process.
– Emotional discipline is as important as fund selection.

A planner acts as a coach to keep you disciplined.

» Role of Certified Financial Planner

– Helps you choose the right funds for each goal.
– Matches SIPs with your time horizon and risk profile.
– Gives unbiased and professional guidance.
– Provides 360-degree monitoring and adjustments.
– Offers peace of mind by reducing mistakes.

With a planner, you invest with confidence, not confusion.

» How Much to Invest in SIP

– Start with an amount comfortable for you.
– Increase SIP every year with income growth.
– Step-up SIP builds wealth faster without pain.
– Even small increases make big impact over long term.

Discipline is more important than starting with a big amount.

» Wealth Creation Over Years

– First five years may show slow growth.
– After ten years, compounding picks up speed.
– After fifteen years, wealth grows significantly.
– SIP is not magic, but discipline and time create magic-like results.

Think of SIP as a long journey. Destination will surprise you pleasantly.

» Insurance and Investment Separation

If you hold ULIPs or investment cum insurance policies, review them carefully.

– Such products mix two needs and deliver weak results.
– Returns are often poor compared to mutual funds.
– Insurance coverage is also inadequate.

Better to surrender such policies and reinvest in mutual funds.
For insurance, buy a pure term plan.
For investment, SIP in mutual funds works best.

» Benefits of Long-Term SIP

– Financial freedom after retirement.
– Comfortable education fund for children.
– Wealth to support lifestyle and dreams.
– Peace of mind with financial security.

Long-term SIP is one of the most reliable paths to prosperity.

» Finally

SIP is a proven strategy for long-term wealth creation. You have made the right decision. By choosing the right mix of actively managed funds, staying patient, and taking support from a Certified Financial Planner, you will reach your goals smoothly.

Remember:
– Stay invested for the long term.
– Avoid panic during market falls.
– Review and rebalance yearly.
– Take professional guidance.

Your discipline today will create financial freedom tomorrow. Continue with confidence and trust the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment
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  |10870 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

Listen
Money
I am willing to invest INR 12500 in SIP for next 10 to 15 years. Kindly advise for best SIP for good return.
Ans: investing in SIPs (Systematic Investment Plans) is a smart way to build wealth over the long term. With a time horizon of 10 to 15 years, you have the opportunity to benefit from the power of compounding and potentially higher returns from equity investments. Here's a suggestion for a diversified SIP portfolio:

Large Cap Fund: Allocate a significant portion of your SIP amount to a large-cap fund. These funds invest in established companies with a proven track record and offer stability to your portfolio.
Flexi Cap Fund: Opt for a flexi-cap fund that provides the flexibility to invest across companies of various market capitalizations based on market conditions. This offers exposure to both large, mid, and small-cap segments, enhancing diversification.
Mid Cap Fund: Allocate a portion of your SIP to a mid-cap fund, focusing on companies with medium market capitalization. Mid-cap companies have the potential for significant growth, providing an opportunity for higher returns over the long term.
Small Cap Fund (Optional): Depending on your risk appetite, you may consider including a small-cap fund in your portfolio. These funds invest in smaller companies with the potential for rapid growth, albeit with higher volatility.
By focusing on large-cap, flexi-cap, and mid-cap funds, you create a well-diversified SIP portfolio that balances stability with growth potential. Before finalizing your investment decisions, assess your risk tolerance and consult with a Certified Financial Planner to ensure your portfolio aligns with your long-term financial goals. Remember to stay disciplined and review your portfolio periodically to make any necessary adjustments.

..Read more

Ramalingam

Ramalingam Kalirajan  |10870 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

Listen
Money
Sir which SIP will be best for investment?
Ans: Choosing the best SIP (Systematic Investment Plan) involves evaluating several factors to ensure it aligns with your financial goals and risk tolerance.

Understanding SIP
SIP is a method of investing a fixed amount regularly in mutual funds. It offers the benefit of disciplined investing and rupee cost averaging.

Assessing Your Investment Goals
Before selecting an SIP, it's essential to define your investment goals.

Are you saving for retirement, a child's education, or buying a house?

Evaluating Risk Tolerance
Your risk tolerance determines the type of funds you should invest in.

Are you comfortable with high risk for potentially high returns, or do you prefer stability?

Time Horizon
Your investment horizon influences the type of mutual funds you should choose.

A longer time horizon allows for more aggressive investments.

Benefits of Actively Managed Funds
Actively managed funds are managed by professional fund managers who aim to outperform the market.

Advantages Over Index Funds
Higher Returns: Actively managed funds aim to beat the market index, potentially offering higher returns.

Flexibility: Fund managers can adjust the portfolio based on market conditions.

Diversification: These funds often have a diversified portfolio to mitigate risk.

Disadvantages of Index Funds
Limited Flexibility: Index funds strictly track an index, limiting flexibility.

No Outperformance: They aim to match, not outperform, the index.

Market Cap Bias: These funds are heavily weighted towards large-cap stocks, which might not always offer the best returns.

Types of Funds for SIP
Equity Funds
Equity funds invest primarily in stocks. They offer high growth potential and are suitable for long-term investments.

Large Cap Funds
These funds invest in large, well-established companies. They offer stability and moderate growth.

Mid Cap Funds
These funds invest in mid-sized companies. They have higher growth potential but come with increased risk.

Small Cap Funds
These funds focus on smaller companies. They can offer substantial returns but with higher volatility.

Debt Funds
Debt funds invest in fixed-income securities like bonds. They offer stability and regular income.

Short-Term Debt Funds
Suitable for conservative investors seeking stable returns in the short term.

Long-Term Debt Funds
Offer higher returns but with increased interest rate risk.

Hybrid Funds
Hybrid funds combine equity and debt investments. They offer a balanced approach, providing both growth potential and stability.

Balanced Advantage Funds
These funds dynamically manage the allocation between equity and debt based on market conditions.

Choosing the Right SIP
Factors to Consider
Fund Performance: Look at the fund's historical performance and compare it with benchmarks.

Expense Ratio: Lower expense ratios can improve net returns.

Fund Manager’s Track Record: A skilled and experienced fund manager can significantly impact the fund's performance.

Risk-Return Profile: Ensure the fund’s risk profile matches your risk tolerance.

Suggested Categories for SIP
Large Cap Equity Funds: For stability and moderate returns.

Mid Cap Equity Funds: For higher growth potential with moderate risk.

Small Cap Equity Funds: For aggressive growth with higher risk.

Balanced Advantage Funds: For a balanced approach between equity and debt.

Short-Term Debt Funds: For conservative investors seeking stable returns.

Consulting a Certified Financial Planner
Personalized Advice: A CFP provides tailored investment strategies based on your goals and risk profile.

Holistic Planning: They consider your entire financial situation and future needs.

Expert Guidance: Benefit from their market knowledge and experience in managing investments.

Conclusion
Choosing the best SIP depends on your financial goals, risk tolerance, and investment horizon. Consider a mix of large, mid, and small-cap funds, along with hybrid funds, for a balanced and diversified portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ravi

Ravi Mittal  |676 Answers  |Ask -

Dating, Relationships Expert - Answered on Dec 04, 2025

Asked by Anonymous - Dec 02, 2025Hindi
Relationship
My married ex still texts me for comfort. Because of him, I am unable to move on. He makes me feel guilty by saying he got married out of family pressure. His dad is a cardiac patient and mom is being treated for cancer. He comforts me by saying he will get separated soon and we will get married because he only loves me. We have been in a relationship for 14 years and despite everything we tried, his parents refused to accept me, so he chose to get married to someone who understands our situation. I don't know when he will separate from his wife. She knows about us too but she comes from a traditional family. She also confirmed there is no physical intimacy between them. I trust him, but is it worth losing my youth for him? Honestly, I am worried and very confused.
Ans: Dear Anonymous,
I understand how difficult it is to let go of a relationship you have built from scratch, but is it really how you want to continue? It really seems to be going nowhere. His parents are already in bad health and he married someone else for their happiness. Does it seem like he will be able to leave her? So many people’s happiness and lives depend on this one decision. I think it’s about time you and your BF have a clear conversation about the same. If he can’t give a proper timeline, please try to understand his situation. But also make sure he understands yours and maybe rethink this equation. It really isn’t healthy. You deserve a love you can have wholly, and not just in pieces, and in the shadows.

Hope this helps

...Read more

Mayank

Mayank Chandel  |2562 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 04, 2025

Career
My son will be appearing for JEE Main & JEE Advanced 2026 and will participate in JoSAA Counselling 2026. I request clarification regarding the GEN-EWS certificate date requirement for next year. I have already applied for an EWS certificate for current year 2025, and the application is under process. However, I am unsure whether this certificate will be accepted during JoSAA 2026, or whether candidates will be required to submit a fresh certificate for FY 2026–27 (issued on or after 1 April 2026). My concern is that if JoSAA requires a certificate issued after 1 April 2026, students will have only 1–1.5 months to complete the entire procedure, which is difficult considering normal government processing timelines. Also, during current JEE form filling, students are asked to upload a GEN-EWS certificate issued on or after 1 April 2025, or an application acknowledgement. This has created confusion among parents regarding which year’s certificate will finally be valid at the time of counselling. I request your kind guidance on: Which GEN-EWS certificate will be accepted for JoSAA Counselling 2026 — a certificate for FY 2025–26 (issued after 1 April 2025), or a new certificate for FY 2026–27 (issued after 1 April 2026)?
Ans: Hi
You need not worry about the EWS certificate. Even if you apply for the next year's certificate on 1 Apr 2026, the second session of JEE MAINS will still be held, followed by JEE ADVANCED, which will be held in May. JOSAA starts in June. so you will have 2 months in hand for fresh EWS certificate.

...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