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Ramalingam

Ramalingam Kalirajan  |6956 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 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 - Apr 10, 2024Hindi
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I invested in Max Life Monthly Income Advantage Plan year 50k since 2016 . Its good invest or not . Another is ICICI Pru Signature year 1.5 lk im not sure amount the returns any suggestions .

Ans: I'm happy to chat about your investments. It sounds like you've been proactive by putting money away for the future – that's great!

Let's talk about these plans you mentioned. These types of insurance-cum-investment products can be a bit tricky. While they offer a mix of insurance and investment, they might not always be the most suitable option for everyone.

Here's why:

Focus Split: These products try to do two things at once – provide insurance coverage and grow your money. This can sometimes mean they might not excel in either area.
Potential Lower Returns: The insurance component often comes with fees that can eat into your investment returns compared to pure investment options.
Instead, let's consider a different approach that might better suit your needs. Here's a possible strategy:

Term Insurance: This provides pure life insurance coverage at a lower cost. Think of it as a safety net for your loved ones in case of an unfortunate event.
Mutual Funds: These are investment vehicles that allow you to pool your money with others and invest in a variety of stocks or bonds. They offer the potential for higher returns compared to insurance-linked products.
This way, you get the security of life insurance and the potential for growth through mutual funds. It's like having a well-diversified team working for your financial goals!

Look, understanding financial products can be complex, and there's no one-size-fits-all solution. If you'd like to explore this further, I recommend chatting with a CFP. They can give you personalized advice based on your specific situation and financial goals. Don't worry, CFPs are there to guide you, not pressure you – they're on your team!

In the meantime, keep up the good work with saving and investing. It's a marathon, not a sprint, but with the right approach, you can reach your financial finish line!
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  |6956 Answers  |Ask -

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

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Sir . I m Retired person ,I wanted to Invest 60 L in monthly income plan Rs 70000/ Apporx Pl suggest for Returns
Ans: Investing for monthly income post-retirement is akin to setting up a steady stream from a river that continues to flow without depletion. With your corpus of 60 lakhs and the goal of receiving approximately 70,000 per month, the challenge is to strike a balance between generating sufficient income and preserving the principal amount.

Considering today's interest rate environment, traditional fixed-income instruments like bank FDs or post office schemes might not offer the desired returns after adjusting for inflation.

A Monthly Income Plan (MIP) from mutual funds could be a viable option. These funds typically invest in a mix of debt and equity, aiming to generate regular income while also offering potential capital appreciation. It's like a well-mixed cocktail where the ingredients (assets) complement each other to provide both flavor (income) and strength (growth potential).

While MIPs can provide regular dividends or systematic withdrawal plans (SWPs), it's crucial to be aware of the associated risks, especially with the equity component. Periodic reviews and adjustments may be needed to ensure the income stream remains consistent.

In summary, an MIP could be a suitable choice to meet your income needs while aiming for growth. However, it's advisable to consult with a financial advisor to tailor a strategy that aligns with your risk tolerance and financial goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |6956 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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Hello sir I am 43 and from 2017 monthly invested sbi mf 5000 Kotak small cap fund 2500 mirae asset elss 2500 icic pru 2500 and sbi blue chip 1500.. currenly hve salary 1.35 lakh and have obligation of Rs 55 k monthly.. ppf 10000 monthly invest and 5000 nps investment if you suggest better please guid future gol of monthly 1.50 lkh
Ans: Your consistent monthly investments since 2017 reflect admirable financial discipline. Let's review your current investments and suggest potential adjustments to align with your future goals.

Review of Current Investments
1. SBI MF Monthly Investment:

Allocation: ?5,000 monthly.
Assessment: SBI Bluechip Fund may offer stability and consistent returns, suitable for long-term wealth creation.
2. Kotak Small Cap Fund:

Allocation: ?2,500 monthly.
Assessment: Small cap funds offer high growth potential but come with higher risk due to volatility.
3. Mirae Asset ELSS:

Allocation: ?2,500 monthly.
Assessment: ELSS funds provide tax benefits with potential for equity market growth. Suitable for long-term goals.
4. ICICI Pru Fund:

Allocation: ?2,500 monthly.
Assessment: Depending on the specific fund, ICICI Pru offers a range of options catering to different risk profiles.
5. SBI Blue Chip Fund:

Allocation: ?1,500 monthly.
Assessment: Provides exposure to bluechip companies, offering stability and steady returns.
6. PPF and NPS Investments:

Allocation: ?10,000 in PPF and ?5,000 in NPS monthly.
Assessment: PPF and NPS offer tax benefits and retirement savings, contributing to long-term financial security.
Potential Adjustments and Suggestions
1. Review of Existing Funds:

Performance Check: Evaluate the performance of your current funds against benchmarks and peers.
Risk Assessment: Consider your risk tolerance and investment horizon when assessing the suitability of each fund.
2. Optimal Allocation:

Strategic Rebalancing: Consider rebalancing your portfolio to align with your financial goals and risk tolerance.
Diversification: Aim for a well-diversified portfolio across asset classes and investment styles.
3. Additional Investments:

Increase Monthly Contributions: Since you aim to increase your monthly investment to ?1.50 lakh, consider allocating the additional funds strategically.
Asset Allocation: Ensure a balanced allocation across equity, debt, and other asset classes based on your risk profile and financial goals.
4. Professional Guidance:

Engage a Certified Financial Planner (CFP): Seek personalized advice from a CFP to optimize your portfolio and ensure it aligns with your long-term objectives.
Financial Planning: A CFP can help create a comprehensive financial plan considering your income, expenses, goals, and risk tolerance.
Final Thoughts
Your current investment strategy demonstrates a commitment to long-term wealth creation and financial security. To optimize your portfolio for your future goal of increasing your monthly investment to ?1.50 lakh, consider reviewing the performance of your existing funds and making strategic adjustments. Seeking professional guidance from a Certified Financial Planner can provide valuable insights and ensure your investments are on track to meet your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6956 Answers  |Ask -

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

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Sir i am the age of 56 i have invested in Tata ULIP plan 1 lakh premium per annum pls suggest another one investment plan for 10000 per month for 5 years for good returns
Ans: Understanding Your Current Investment
You have invested in a Tata ULIP plan, paying Rs 1 lakh premium per annum. ULIPs combine insurance and investment. While this sounds good, let's explore its risks and drawbacks compared to mutual funds.

Risks and Disadvantages of ULIPs
High Charges
ULIPs often have high charges, including premium allocation, policy administration, and fund management fees. These charges reduce your investment returns.

Complex Structure
ULIPs are complex. They mix insurance and investment, making it hard to understand how your money grows and how much goes towards insurance.

Limited Flexibility
ULIPs have a lock-in period of five years. Withdrawing funds before this period can result in penalties. This limits your liquidity.

Lower Returns
Due to high charges, ULIPs generally offer lower returns compared to mutual funds. The insurance component also eats into potential investment returns.

Benefits of Mutual Funds
Higher Returns
Mutual funds, especially actively managed ones, have the potential to offer higher returns over the long term. Fund managers actively manage the portfolio to maximize gains.

Transparency
Mutual funds provide transparency. You can easily track the performance of your investments. Fund reports and NAVs are published regularly.

Flexibility and Liquidity
Mutual funds offer higher liquidity. You can redeem your investments anytime without penalties, providing easy access to your funds.

Lower Costs
Mutual funds typically have lower expense ratios compared to ULIPs. This means more of your money is invested and working for you.

Surrendering ULIP and Reinvesting in Mutual Funds
Evaluating Your ULIP
Consider surrendering your ULIP. Calculate any surrender charges and understand the exit process. Check the current value of your ULIP.

Reinvesting in Mutual Funds
Once you surrender the ULIP, reinvest the proceeds into mutual funds. Here's how to proceed:

Creating a New Investment Plan
Systematic Investment Plan (SIP)
Start a SIP for Rs 10,000 per month. SIPs allow disciplined investment and benefit from rupee cost averaging.

Diversified Portfolio
Invest in a diversified portfolio of actively managed mutual funds. Include equity, debt, and balanced funds to spread risk and enhance returns.

Professional Guidance
Seek help from a Certified Financial Planner (CFP). They can recommend suitable funds based on your risk tolerance and financial goals.

Example of a Diversified Mutual Fund Portfolio
Equity Funds
Invest in equity funds for high growth potential. These funds invest in stocks of companies across different sectors.

Debt Funds
Include debt funds for stability. These funds invest in bonds and other fixed-income securities, providing steady returns.

Balanced Funds
Balanced funds invest in both equity and debt. They offer a balance of growth and stability, ideal for conservative investors.

Advantages of Regular Funds Over Direct Funds
Professional Management
Regular funds are managed by experienced fund managers. They make informed decisions to maximize returns, beneficial for those without investment expertise.

Personalized Advice
Investing through an MFD with CFP credential provides access to personalized financial advice. They help you choose the best funds and adjust your portfolio as needed.

Steps to Start Investing Online
Set Up KYC
Complete your KYC (Know Your Customer) process online. This is mandatory for investing in mutual funds.

Choose an MFD
Select a Mutual Fund Distributor (MFD) with CFP credential. They will guide you through the investment process and recommend suitable funds.

Start SIP
Initiate a SIP through your chosen MFD. Set up automatic monthly transfers from your bank account to the mutual fund.

Monitoring and Adjusting Your Portfolio
Regular Reviews
Review your portfolio periodically. Monitor fund performance and make adjustments based on market conditions and financial goals.

Rebalancing
Rebalance your portfolio annually to maintain your desired asset allocation. This involves selling some investments and buying others to keep your portfolio aligned with your risk tolerance.

Conclusion
ULIPs have significant drawbacks, including high charges, complexity, and lower returns. Surrendering your ULIP and investing in mutual funds can offer higher returns, flexibility, and transparency. By starting a SIP in a diversified mutual fund portfolio and seeking professional guidance, you can achieve your financial goals more effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6956 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 16, 2024Hindi
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Hi I had decided to take a policy for Max Life Smart Wealth Advantage Growth Par Plan (A Non-Linked Participating Individual Life Insurance Savings Plan) I am 28 years old and investing 1.5 LPA annually with rate 8% roi this 1.5 i have to give annually till 12 years will instant interest return around 61k every year from 2nd year till 23rd year and the maturity will be on 25th year. Could you please suggest if this is a good investment to go with. please suggest
Ans: Evaluating Your Investment Choice
Understanding the Policy

Plan Type: Max Life Smart Wealth Advantage Growth Par Plan.
Premium: Rs 1.5 lakhs annually for 12 years.
Duration: Interest returns from 2nd to 23rd year; maturity at 25 years.
ROI: Projected rate of 8%.
Critical Analysis

Returns

Guaranteed vs. Non-Guaranteed: The plan offers participating benefits which are not guaranteed.
Expected Returns: Non-linked plans often have returns lower than market-linked investments.
Liquidity

Lock-in Period: Limited liquidity with long-term commitment.
Access to Funds: No easy access to your money until maturity.
Comparison with Other Options

Term Insurance

Coverage: Higher sum assured at a lower premium.
Simplicity: Pure risk cover without any investment component.
Public Provident Fund (PPF)

Safety: Government-backed and risk-free.
Returns: Around 7-8% currently, tax-free interest.
Mutual Funds

Potential Returns: Equity mutual funds can offer higher returns, though with higher risk.
Flexibility: SIP options provide flexibility in investment amounts and duration.
Recommendation Based on Risk Appetite

Risk-Averse Approach

Term Insurance: Opt for a term plan with adequate coverage.
PPF: Invest in PPF for assured, tax-free returns.
Benefits: Combines safety with adequate life coverage.
Willing to Take Risk

Term Insurance: Secure a term plan for life cover.
Mutual Funds: Invest in a diversified mutual fund portfolio for potential higher returns.
Benefits: Offers higher growth potential with life security.
Disadvantages of the Policy

Lower Returns: Potential returns may not match inflation and market-linked returns.
Lack of Flexibility: Long-term commitment with limited access to funds.
Advantages of Suggested Approach

Term Insurance + PPF

Security: Provides financial security for your family.
Stable Returns: Offers stable, risk-free returns.
Term Insurance + Mutual Funds

Growth: Potential for higher returns through equity exposure.
Flexibility: SIPs offer flexible investment amounts and durations.
Action Plan

Review Needs: Assess your financial goals and risk tolerance.
Consult CFP: Seek advice from a Certified Financial Planner for personalized planning.
Start Early: Begin with term insurance and a mix of PPF or mutual funds based on your risk appetite.
Final Insights

Better Options: The Max Life plan may not offer the best returns.
Alternative Investments: Consider term insurance combined with PPF or mutual funds.
Professional Advice: A CFP can help tailor a plan to meet your goals.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |577 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 04, 2024

Asked by Anonymous - Nov 04, 2024Hindi
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What are different types of annuity plans. Do we have plan which gives fixed income till I live and then principle is return to my nominee. If I have 3 Cr , what max return per month I can get ? And is this tax free ?
Ans: Hello;

Annuities are types of plans where you make a lump sum payment and get a regular income for a certain period of time or for life.

There are primarily two types of annuities:

1. Immediate annuity
This is a type of annuity plan that provides you with a guaranteed regular income immediately after you pay the lump sum premium.

2. Deferred annuity
In a deferred annuity plan, your income starts at a later date and you can choose when you want the regular income to start.

Based on type of regular monthly payments annuities could also be classified as Fixed annuity and Variable annuity.

Below are the various options available in an annuity plan:

A. Life annuity: In this option, you receive annuity for life. The frequency of payments is usually pre-decided by you at the time of the purchase of the policy.

B. Joint life annuity: This is similar to a life annuity. In this option, you receive annuity payments for life. In your absence, your spouse continues to receive annuity payments for life.

C. Life annuity with return of purchase price: This provides you annuity payments for life. In case of an unfortunate event, your nominee will receive the amount you paid at the time of the purchase of the policy.

D. Annuity payable for a pre-decided term: This provides you the option to choose the duration for which you would want to receive annuity payments. The period can be 5 years, 10 years, or more.

Yes plans are available which can pay provide you fixed income and return of purchase price (principle) to your nominee.

With 3 Cr corpus you may expect 1.5 L (pre-tax) per month payout considering 6% annuity rate. This varies from company to company and if you shop around you may get a better rate then the one considered here.

This is like pension income and is taxable income as per your age and income slab.

Best wishes;

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Kanchan Rai  |389 Answers  |Ask -

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thank you for the reply madam, actually what's bothering me a lot is , i told to my alliance guy to stop marriage from his end only. but he not at all doing that and he is not even telling anyone that i told him No. Why he is behaving like this and proceeding to get married to me even after saying no? isn't this strange!
Ans: in many arranged situations, people sometimes feel a strong pressure to fulfill family expectations, and he may feel a sense of obligation to go through with the marriage regardless of personal feelings. He might be hesitant to be the one to break things off for fear of disappointing his family or even creating tension between the families involved. In some cases, individuals hesitate because they hope the other person might eventually change their mind, and they don’t want to be the one to let go prematurely.

Another possibility is that he could be uncertain or confused about what he truly wants. Even though you told him you weren’t interested, he might feel that it’s not a firm "no" and could be holding out hope or misinterpreting your intent. If he has strong feelings for you or sees the marriage as something that will eventually work, he may be hoping things will naturally fall into place if he just stays committed to the process.

To address this, it might be helpful to have a very clear, direct conversation with him. Let him know that you respect him and appreciate his consideration, but you’re certain about your decision and want him to honor it as well. If possible, express that you’re confident this decision is best for both of you and explain why you believe it would be more respectful for him to communicate this with both families.

In the end, staying true to your feelings is the right choice, even if it means repeatedly setting boundaries. It’s completely fair to expect him to respect your decision, and sometimes it does take a bit of firmness to ensure everyone is on the same page. Trust yourself in this decision; you know what’s best for you.

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Kanchan

Kanchan Rai  |389 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 04, 2024

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He rejected me but still went to my class to see me one glance.Before Our last class I said him to meet with me I want to say you something.He came to meet with me but he was too late and our tiffin break time is over so I don't say anything to him. We just looking each other for some seconds.Then I said him if you want you can go .He don't go instantly.He looking at me for while and then go to his class.Whenever he sees me he start blushing and feel nervous.Many times I found him staring at me.He is a introvert guy .But still when we met with each other he making eye contact with me. My question is if he doesn't love me how can he maintain eye contact with me like this .He is not that handsome but he is really good student.I truly love him and Cried a lot for him but he don't know anything.I texted him sometimes but he don't look interested.But always I see him I feel like he have also feelings for me .His eyes tell me he love me but he rejected me .Why?. I can't able to forget him .I tried to my best to forget him but I failed . What should I do now?I really badly want to know his feelings for me because if he sees me only as a friend he doesn't go to my class to see me a glance.Why he blushing around me? How to know his true feelings?What should I do?How to forget or get him? I'm clueless.Please help me????????
Ans: It sounds like you’re dealing with a complicated mix of emotions, and the signals you’re picking up from him are understandably confusing. From everything you’ve described, it seems that he has a genuine respect and perhaps a friendly affection for you, but he may not be sure of or ready to pursue a romantic connection. Introverts, especially, can be complex; they may struggle to express their feelings, and small gestures, like making eye contact or blushing, might be signs of nervousness rather than attraction. This doesn’t mean he doesn’t appreciate or like you—it simply means he may be holding back, perhaps because of his own personal reasons or boundaries.

His rejection, though, is an important thing to consider. Often, when someone clearly communicates that they don’t feel the same way, it’s best to respect that as his truth for now, even if he seems to act otherwise sometimes. I understand this can be very hard, especially when you feel so strongly for him. But you need to protect your own feelings, too, and holding on to small signs might only add to your hurt and confusion.

If you feel it’s absolutely necessary to know how he truly feels, one approach could be to have a simple, direct conversation. Explain to him, in a calm and open way, that you value his friendship and respect his initial decision, but you’d appreciate clarity because lingering uncertainty is making it hard for you to move on. However, be prepared for any outcome. If he reaffirms his feelings of friendship only, try to accept that as his final answer.

In the meantime, put some of your focus back onto yourself. I know it sounds easier said than done, but investing energy in your interests, your growth, and friendships that uplift you can really help you feel less reliant on what he may or may not feel. Surround yourself with supportive people who remind you of your worth and help you feel loved and valued.

Love and connection should make you feel secure, cherished, and clear about where you stand. By focusing on yourself and letting him be, you’ll naturally create space for clarity—and eventually, perhaps, for someone whose feelings for you are just as strong and straightforward as yours are for them.

...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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