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Ajit

Ajit Mishra  | Answer  |Ask -

Answered on Mar 09, 2022

Ashok Question by Ashok on Mar 09, 2022Hindi
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Kindly suggest to me different sectors of stocks for good returns for the period of long term 3 to 5 years investment of 10 lakhs. We will be grateful for your suggestion.

Ans: You can invest in Banking – Axis bank and ICICI Bank; Pharma – Biocon; Auto – M&M and Bajaj Auto; FMCG – Britannia and Godrej CP; Consumer Durables – Polycab and V-Guard; Cement – Ramco Cements and JK Lakshmi; Telecom – Bharti Airtel; IT – Birlasoft.

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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Vivek

Vivek Shah  | Answer  |Ask -

Financial Planner - Answered on Feb 13, 2023

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Sir, i am an investor of about 10 year horizon. Which stocks can i invest.
Ans: First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction😃

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

After looking at all these parameters you can think of taking allocations to stocks or equity mutual funds and decide how much allocation to stocks or mutual funds is comfortable to you. If you dont have any prior expertise in investing in stocks, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing

..Read more

Ramalingam

Ramalingam Kalirajan  |7548 Answers  |Ask -

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

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I have 20 lakh Rs. to invest only in Equity for 10 Years. Kindly suggest the sectors which could see significant growth in next 10-12Y..If possible kindly suggest some stock from these sectors. I already have SIP of 60K per month diversified in large Mid and small cap.
Ans: Considering your long-term investment horizon of 10 years and the desire for substantial growth, I would recommend focusing on diversified equity funds rather than investing directly in sectoral stocks. Diversified equity funds offer exposure to a wide range of sectors and companies, helping to spread risk and maximize long-term returns.

Instead of trying to predict which specific sectors will outperform over the next decade, diversified equity funds provide a balanced approach by investing in a diversified portfolio of stocks across various sectors. These funds are managed by experienced fund managers who carefully select and rebalance the portfolio to capture opportunities while mitigating risks.

By investing in diversified equity funds, you can benefit from the growth potential of multiple sectors without the need to pick individual stocks. Additionally, these funds offer convenience, liquidity, and professional management, making them suitable for long-term investors seeking capital appreciation.

I would suggest considering reputable diversified equity funds with a track record of consistent performance and aligned with your risk tolerance and investment goals. It's essential to conduct thorough research or seek advice from a financial advisor to select funds that suit your requirements and align with your overall investment strategy.

..Read more

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Asked by Anonymous - Jan 17, 2025Hindi
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Then doctor asked her why she stopped and what I said, my wife said that he is asking for female staff and doctor said “I am a doctor and I am not having female staff and there is nothing male and female in doctor’s consultation” my wife got convinced and told me that we are continuing with this doctor and I also shaked my head as consent sign but not aware with the upcoming surprise and then she open her upper body part and doctor did the check up by pressing or whatever doctor does. And I was not ready for this So, I am still in trauma due to this, but I don’t want her to show her body to any male doctor. That picture comes again and again in my eyes. I don’t want to break my relation with wife, because we married 20 years before and we have 2 daughter and I love her too much. But she has disobeyed me and obeyed that doctor. I am in a trauma. What should I do to come out of this trauma. Please let me know.
Ans: To address your trauma, start by having an open and honest conversation with your wife about your feelings. Express your emotions calmly, without blame, so she can understand the depth of your discomfort and help you work through it. It's also crucial to recognize that trust and mutual respect are fundamental in any relationship. Your wife’s decision was likely driven by her need for medical care, not a desire to hurt or disobey you.

Consider seeking professional help for yourself. A therapist or counselor can provide a safe space for you to explore these feelings, work through the trauma, and develop strategies to cope with intrusive thoughts. They can also help you understand the importance of medical privacy and the necessity of certain procedures, which may ease your discomfort over time.

Additionally, you might want to explore couples counseling. This can help both of you navigate this situation together, rebuild trust, and strengthen your relationship. Remember, your goal is to maintain a loving and supportive partnership, and professional guidance can be instrumental in achieving that.

Your love for your wife and your desire to keep the relationship strong is evident. By addressing these feelings head-on and seeking support, you can move towards healing and maintaining the bond you cherish.

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Ramalingam

Ramalingam Kalirajan  |7548 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 17, 2025

Asked by Anonymous - Jan 17, 2025Hindi
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I'm 35 years old. I want to invest INR 65000 for retirement at 50 years old. My current expenses 65000 per month. Please guide me.
Ans: Retiring at 50 with your current lifestyle requires a carefully crafted investment strategy. Here’s a detailed guide tailored to your goal.

Step 1: Define Retirement Corpus Requirement
Current Monthly Expenses: Rs. 65,000.
Inflation Adjustment: At 6% inflation, your expenses will increase significantly by 50.
Retirement Corpus: The corpus must sustain you for at least 30+ years post-retirement.
Lifestyle Goals: Include travel, medical emergencies, and aspirational expenses in calculations.
Step 2: Asset Allocation Strategy
A balanced mix of equity and debt instruments can help grow your wealth steadily while minimizing risks.

1. Equity Mutual Funds (70% Allocation)
Why Equity? High growth potential to beat inflation over the long term.
Recommended Categories: Flexi-cap, mid-cap, and large-cap funds.
SIP/Investable Amount: Invest Rs. 45,500 monthly in equity mutual funds.
2. Debt Instruments (30% Allocation)
Why Debt? Stability and regular income during volatile markets.
Recommended Options: PPF, short-term debt mutual funds, or NPS (Tier I).
SIP/Investable Amount: Allocate Rs. 19,500 monthly.
Step 3: Include Inflation Protection
Inflation reduces the value of money significantly over time.
Your retirement corpus should grow faster than the inflation rate.
Equity exposure helps overcome inflation impacts effectively.
Step 4: Ensure Tax Efficiency
1. Equity Mutual Funds
Tax Rules: Long-term capital gains (LTCG) above Rs. 1.25 lakh taxed at 12.5%.
Action Plan: Use annual redemption to manage gains below taxable limits.
2. PPF and NPS
Tax Benefits: Both offer tax-saving benefits under Section 80C.
Lock-in Period: Ensure alignment with your retirement timeline.
Step 5: Emergency Fund Creation
Build an emergency fund equivalent to 12 months’ expenses (Rs. 7.8 lakh).
Park it in liquid funds or a high-yield savings account for quick access.
Step 6: Health and Risk Coverage
Health Insurance: Ensure adequate coverage to avoid depleting investments during medical emergencies.
Life Insurance: Use a term plan to secure your dependents until you achieve your retirement goal.
Step 7: Regular Portfolio Reviews
Review your portfolio every six months.
Rebalance based on performance, changing goals, and market conditions.
Seek advice from a Certified Financial Planner for optimized asset allocation.
Step 8: Additional Recommendations
Avoid Real Estate: Illiquid and high transaction costs make it unsuitable for your timeline.
Avoid Direct Investments: Opt for regular plans via mutual fund distributors guided by a CFP.
Diversify Investments: Explore international mutual funds for added growth.
Step 9: Incremental Contributions
Increase your SIP amount annually by 10-15% to align with income growth.
This ensures your corpus grows significantly over time.
Finally
Achieving financial independence by 50 is ambitious but achievable. Consistency in investments, inflation-adjusted growth, and regular reviews are critical. Focus on disciplined execution of the outlined plan for a secure and fulfilling retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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