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Anil

Anil Rego  |388 Answers  |Ask -

Financial Planner - Answered on Apr 07, 2024

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Asked by Anonymous - Apr 07, 2024Hindi
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Kindly advise 2-3 mutual fund investment for lumpsum for longer duration (15-20 years ) ?

Ans: You can look at a mix of Large, Mid & Small-cap funds and decide on the mix based on your risk appetite. You can also park the funds in a debt fund and do a systematic transfer into an equity fund. Some Large-cap funds to mention are Nippon India Largecap fund & Mirae largecap fund. In the mid-cap category one may look at HDFC Mid-cap and SBI mid-cap funds. In the small-cap category one may look at ICICI Small-cap and Kotak small-cap funds.
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  |8778 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

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I want to invest 3 lacs lump sum in mutual fund for long time 5/10 years. Please suggest.
Ans: Strategic Investment of 3 Lakh Lump Sum in Mutual Funds for Long-Term Goals

Investing a lump sum of 3 lakhs in mutual funds for a long-term horizon of 5 to 10 years requires careful consideration of various factors to optimize returns while managing risk.

Understanding Long-Term Investment Goals

Before selecting mutual funds, it's essential to define your long-term investment goals, such as wealth accumulation, retirement planning, or funding future expenses. Clarifying your objectives will guide your investment strategy.

Analyzing Risk Tolerance and Time Horizon

Assessing your risk tolerance and investment horizon is crucial for selecting suitable mutual funds. Longer time horizons typically allow for a higher allocation to equity-oriented funds, which offer the potential for higher returns but come with greater volatility.

Selecting Mutual Fund Categories

Considering your long-term investment horizon, diversification, and risk tolerance, here are some mutual fund categories to consider:

1. Equity Mutual Funds

Equity mutual funds invest primarily in stocks, offering the potential for capital appreciation over the long term. Within this category, you can choose from large-cap, mid-cap, small-cap, or multi-cap funds based on your risk appetite and return expectations.

2. Balanced or Hybrid Mutual Funds

Balanced or hybrid funds invest in a mix of equities and debt instruments, providing a balanced risk-return profile. These funds are suitable for investors seeking stable returns with moderate risk exposure.

3. Diversified Equity Funds

Diversified equity funds invest across various sectors and market capitalizations, offering diversification benefits and exposure to different segments of the market. These funds can help mitigate concentration risk and enhance portfolio stability.

Benefits of Regular Funds Investing Through MFDs with CFP Credential

Investing in regular mutual funds through Mutual Fund Distributors (MFDs) with Certified Financial Planner (CFP) credentials offers several advantages:

Personalized Advice: MFDs with CFP credentials provide tailored investment advice based on your financial goals, risk tolerance, and investment horizon.
Portfolio Optimization: They help select suitable mutual funds and optimize your investment portfolio to achieve your long-term objectives.
Ongoing Monitoring: MFDs conduct regular reviews of your portfolio to ensure it remains aligned with your investment goals and make necessary adjustments as needed.
Finalizing Investment Strategy

After assessing your goals, risk tolerance, and investment horizon, consult with a Certified Financial Planner to develop a personalized investment strategy. Consider factors such as asset allocation, fund selection, and portfolio diversification to maximize returns and minimize risk.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8778 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 15, 2024

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Sir, which are the best mutual fund to invest now in lumpsum for 2 years?
Ans: Investing in mutual funds for a short-term period of 2 years requires a careful approach. While mutual funds can offer good returns, the short-term horizon calls for a more conservative strategy. Here’s a breakdown of the best types of funds to consider for a 2-year lumpsum investment:

Consider Low-Risk Options
For a 2-year period, capital preservation is key. Opt for debt-oriented funds or hybrid funds. Equity exposure is risky due to potential market volatility.

Debt funds are relatively safer for such a short horizon. These include ultra-short duration funds, short-term debt funds, or banking and PSU funds. These funds invest in government securities, corporate bonds, and other fixed-income instruments that have low credit risk and provide stable returns.

Hybrid funds are another good option if you’re willing to take a little more risk. These funds invest in a mix of equity and debt, providing some equity exposure for higher returns while keeping risk in check with debt instruments.

Keep in mind that equity-based funds should be avoided for such short-term goals as they tend to have higher volatility. The risk of losing capital in a two-year period is significant, and market corrections can adversely affect your investment.

Be Mindful of Liquidity
Liquidity is important in short-term investments. Choose funds that offer quick redemption without high exit loads. Debt funds generally have better liquidity than long-term equity funds.

If you’re sure that you won’t need the funds for two years, consider ultra-short duration funds or short-term bond funds with high liquidity and minimal lock-in periods.

Analyse Tax Efficiency
Mutual fund investments are taxed based on the type of fund and the holding period. For a two-year investment horizon, taxation can have a considerable impact on your overall returns.

Equity mutual funds: For a holding period of less than one year, short-term capital gains (STCG) are taxed at 20%. If held for over one year but under two years, long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.

Debt mutual funds: For holding periods less than three years, short-term capital gains are taxed as per your income tax slab. Therefore, for debt funds, your gains will be added to your taxable income and taxed accordingly.

Invest in tax-efficient instruments like debt funds for lower tax impact over this period.

Regular Funds vs. Direct Funds
When investing through a mutual fund distributor (MFD) with a Certified Financial Planner (CFP) credential, you get professional advice that helps you choose the right funds. This guidance can ensure better fund selection, suited to your goals.

Direct funds may have lower expense ratios but require a deep understanding of market dynamics and fund performance. Without proper guidance, the risks associated with direct fund investments could outweigh the potential cost savings.

For long-term success, it’s better to invest in regular funds through a trusted MFD.

Market Conditions and Flexibility
The current market conditions should also guide your decision. Since the market can fluctuate, opting for conservative funds helps shield your capital from sudden downturns. However, if you’re willing to take on slightly more risk, hybrid funds could offer better returns without overexposing your investment to the market's volatility.

Keep Your Financial Goals in Mind
It’s important to assess your financial goals before making any lumpsum investment. Since your investment horizon is only 2 years, the primary focus should be on protecting your capital and earning modest returns.

Avoid Index Funds
Index funds track a specific index and do not actively manage the investment to mitigate risks or adjust to market conditions. This means that they may not be the best choice for a short-term investment of 2 years. Actively managed funds, such as debt and hybrid funds, offer better control over risks and can provide more stable returns within this time frame.

Risk Assessment
Debt funds and hybrid funds come with relatively low risks compared to equity funds. However, it’s important to note that even these carry some level of interest rate risk and credit risk. Choosing funds with high-quality bonds and low credit risk is crucial for safeguarding your investment over two years.

If you have a low-risk appetite, sticking to ultra-short duration or short-term debt funds is advisable. These funds typically invest in securities with shorter maturity periods, making them less sensitive to interest rate fluctuations and providing better capital protection.

For those with moderate risk tolerance, hybrid funds can provide slightly higher returns while still keeping your capital relatively safe. These funds balance equity and debt exposure, allowing for some capital appreciation while limiting volatility.

Final Insights
For your 2-year investment horizon, opt for debt or hybrid funds. These funds focus on capital preservation and provide reasonable returns with lower risk compared to equity-focused funds.

Short-term investments require a cautious approach, and selecting funds with high liquidity and low risk will help you achieve your financial goals within this timeframe. Be mindful of taxation on mutual fund gains and always seek guidance from a Certified Financial Planner to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Dr Nagarajan J S K

Dr Nagarajan J S K   |650 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jun 03, 2025

Asked by Anonymous - Jun 03, 2025Hindi
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I have given 2 attempts in neet but unfortunately couldn't clear it...I have completed my graduation from local degree college. Now I'm thinking of doing my post graduation from lucknow university with masters in public health. Is it a good idea?
Ans: HI,
Why couldn't you succeed? The reason may be that you completed your undergraduate degree simultaneously. If you had planned properly, you would have been able to pass the NEET exam. Unfortunately, that didn't happen.

NO. Once again, you seem to be making a mistake. Why did you choose Public Health? Do you understand its scope? If you don't, then why are you pursuing it?

Let me remind you that anyone can appear for NEET after completing a BSc. Here are the requirements.
B.Sc. Examination of an Indian University provided that he/she has passed the B.Sc. Examination with not less than
two of the subjects Physics, Chemistry, Biology (Botany, Zoology)/Biotechnology and further that he/ she has passed
the earlier qualifying examination with Physics, Chemistry, Biology, and English.

BEST WISHES.
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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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