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Confused parent: Best SIPs for a 3-Year-Old Son (4,000 - 5,000 Monthly for 12 - 15 years)

Ramalingam

Ramalingam Kalirajan  |10881 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 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
Aman Question by Aman on Jul 16, 2024Hindi
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I am looking for SIP for around 4000-5000 monthly for 12-15 years for my 3years old Son. Please recommend suitable best options.

Ans: Objective: You want to invest Rs 4000-5000 monthly through SIP.

Time Horizon: You are looking at a 12-15 year investment period for your son.

Why SIP is Beneficial

Rupee Cost Averaging: SIP helps in averaging out the cost of investment by buying units at different market levels.

Disciplined Investment: SIP promotes regular saving and disciplined investment habits.

Actively Managed Funds

Better Returns: Actively managed funds can outperform the market due to expert fund management.

Professional Management: Fund managers make informed decisions to maximize returns.

Diversification Strategy

Balanced Allocation: Allocate investments across large-cap, mid-cap, and small-cap funds.

Risk Management: Diversification reduces risk by spreading investments across various sectors.

Benefits of Regular Funds

Expert Guidance: Investing through a Mutual Fund Distributor with CFP credential provides valuable guidance.

Monitoring: Regular funds are actively monitored and adjusted to market conditions.

Suitable Fund Types

Equity Funds:

Long-Term Growth: Equity funds are ideal for long-term wealth creation.
Balanced Funds:

Stability: These funds provide a mix of equity and debt, offering stability and growth.
Mid-Cap and Small-Cap Funds:

High Returns: Mid-cap and small-cap funds can provide higher returns but come with higher risk.
Actionable Steps

1. Choose the Right Funds

Research: Look for funds with a good track record over the last 5-10 years.
Performance: Check past performance and fund manager's expertise.
2. Start SIP

Set Up: Set up an SIP for Rs 4000-5000 monthly.
Consistency: Ensure regular contributions without interruption.
3. Review Periodically

Monitor Performance: Review your investments at least once a year.
Rebalance: Adjust your portfolio based on performance and market conditions.
Disadvantages of Index Funds

Limited Flexibility: Index funds follow a passive strategy, limiting flexibility.
Market Downturns: They can mirror market downturns without the possibility of active intervention.
Disadvantages of Direct Funds

Lack of Guidance: Direct funds lack professional guidance.
Time-Consuming: Managing investments without expert help can be time-consuming.
Final Insights

Start Early: Starting early helps in compounding your investments over time.
Stay Informed: Keep yourself updated on market trends and fund performance.
Consult a CFP: Consulting a Certified Financial Planner can provide personalized advice and ensure your investments align with your financial goals.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
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  |10881 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

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Hello sir , I am 32 year old I am a salaried person around 60k per month and want to start SIP for my children education I have two children one is 6 year old and another one is 3 year old. Please suggest me the best
Ans: It's fantastic that you're thinking ahead and planning for your children's education at such a young age. Starting SIPs (Systematic Investment Plans) is a smart way to build a corpus for their future educational expenses.
Considering your financial situation and your children's ages, here's a suggested approach:
1. Set Clear Goals: Determine the amount you'll need for each child's education, factoring in inflation and the type of education you aspire for them. This will help you set realistic investment targets.
2. Choose Suitable SIPs: Opt for diversified equity mutual funds that have a track record of consistent performance and align with your investment goals and risk tolerance. Look for funds with a long-term horizon and a focus on capital appreciation.
3. Allocate Funds Wisely: Divide your SIP investments among different funds to spread risk and maximize growth potential. Consider a mix of large-cap, mid-cap, and multi-cap funds to achieve diversification and optimize returns.
4. Start Early and Stay Consistent: Time is your biggest ally when it comes to investing. Start your SIPs as soon as possible to benefit from the power of compounding. Even small, regular investments can grow substantially over time with discipline and consistency.
5. Review and Adjust Regularly: Periodically review your SIP investments to ensure they're on track to meet your goals. Make adjustments as needed based on changes in your financial situation, market conditions, and investment objectives.
6. Stay Disciplined: Avoid the temptation to withdraw or stop your SIPs during market fluctuations. Stay focused on your long-term goals and continue investing consistently, regardless of short-term market movements.
7. Consider Tax Implications: Keep tax efficiency in mind while selecting SIPs. Opt for funds with favorable tax treatment like Equity Linked Savings Schemes (ELSS) for potential tax benefits under Section 80C of the Income Tax Act.
Remember, education is one of the most valuable investments you can make for your children's future. By starting SIPs early and staying disciplined, you can build a solid financial foundation to provide them with the best opportunities for education.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Hello, I am currently in Class 12 and preparing for JEE. I have not yet completed even 50% of the syllabus properly, but I aim to score around '110' marks. Could you suggest an effective strategy to achieve this? I know the target is relatively low, but I have category reservation, so it should be sufficient.
Ans: With category reservation (SC/ST/OBC), a score of 110 marks is absolutely achievable and realistic. Based on 2025 data, SC candidates qualified with approximately 60-65 percentile, and ST candidates with 45-55 percentile. Your target requires scoring just 37-40% marks, which is significantly lower than general category standards. This gives you a genuine advantage. Immediate Action Plan (December 2025 - January 2026): 4-5 Weeks. Week 1-2: High-Weightage Chapter Focus. Stop trying to complete the entire syllabus. Instead, focus exclusively on high-scoring chapters that carry maximum weightage: Physics (Modern Physics, Current Electricity, Work-Power-Energy, Rotation, Magnetism), Chemistry (Chemical Bonding, Thermodynamics, Coordination Compounds, Electrochemistry), and Maths (Integration, Differentiation, Vectors, 3D Geometry, Probability). These chapters alone can yield 80-100+ marks if practiced properly. Ignore topics you haven't studied yet. Week 2-3: Previous Year Questions (PYQs). Solve JEE Main PYQs from the last 10 years (2015-2025) for chapters you're studying. PYQs reveal question patterns and difficulty levels. Focus on understanding why answers are correct, not memorizing solutions. Week 3-4: Mock Tests & Error Analysis. Take 2-3 full-length mock tests weekly under timed conditions. This is crucial because mock tests build exam confidence, reveal time management weaknesses, and error analysis prevents repeated mistakes. Maintain an error notebook documenting every mistake—this becomes your revision guide. Week 4-5: Revision & Formula Consolidation. Create concise formula sheets for each subject. Spend 30 minutes daily reviewing formulas and key concepts. Avoid learning new topics entirely at this stage. Study Schedule (Daily): 7-8 Hours. Morning (5:00-7:30 AM): Physics concepts + 30 PYQs. Break (7:30-8:30 AM): Breakfast & rest. Mid-morning (8:30-11:00): Chemistry concepts + 20 PYQs. Lunch (11:00-1:00 PM): Full break. Afternoon (1:00-3:30 PM): Maths concepts + 30 PYQs. Evening (3:30-5:00 PM): Mock test or error review. Night (7:00-9:00 PM): Formula revision & weak area focus. Strategic Approach for 110 Marks: Attempt only confident questions and avoid negative marking by skipping difficult questions. Do easy questions first—in the exam, attempt all basic-level questions before attempting medium or hard ones. Focus on quality over quantity as 30 well-practiced questions beat 100 random questions. Master NCERT concepts as most JEE questions test NCERT concepts applied smartly. April 2026 Session Advantage. If January doesn't deliver desired results, April gives you a second chance with 3+ months to prepare. Use January as a practice attempt to identify weak areas, then focus intensively on those in February-March. Realistic Timeline: January 2026 target is 95-110 marks (achievable with focused 50% syllabus), while April 2026 target is 120-130 marks (with complete syllabus + experience). Your reservation benefit means you need only approximately 90-105 marks to qualify and secure admission to quality engineering colleges. Stop comparing yourself to general category cutoffs. Most Importantly: Consistency beats perfection. Study 6 focused hours daily rather than 12 distracted hours. Your 110-mark target is realistic—execute this plan with discipline. All the BEST for Your JEE 2026!

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Dr Dipankar

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Dear Sir/Madam, I am currently a 1st year UG student studying engineering in Sairam Engineering College, But there the lack of exposure and strict academics feels so rigid and I don't like it that. It's like they don't gaf about skills but just wants us to memorize things and score a good CGPA, the only skill they want is you to memorize things and pass, there's even special class for students who don't perform well in academics and it is compulsory for them to attend or else the student and his/her parents needs to face authorities who lashes out. My question is when did engineering became something that requires good academics instead of actual learning and skill set. In sairam they provides us a coding platform in which we need to gain the required points for each semester which is ridiculous cuz most of the students here just look at the solution to code instead of actual debugging. I am passionate about engineering so I want to learn and experiment things instead of just memorizing, so I actually consider dropping out and I want to give jee a try and maybe viteee , srmjeee But i heard some people say SRM may provide exposure but not that good in placements. I may not be excellent at studies but my marks are decent. So gimme some insights about SRM and recommend me other colleges/universities which are good at exposure
Ans: First — your frustration is valid

What you are experiencing at Sairam is not engineering, it is rote-based credential production.

“When did engineering become memorizing instead of learning?”

Sadly, this shift happened decades ago in most Tier-3 private colleges in India.

About “coding platforms & points” – your observation is sharp

You are absolutely right:

Mandatory coding points → students copy solutions

Copying ≠ learning

Debugging & thinking are missing

This is pseudo-skill education — it looks modern but produces shallow engineers.

The fact that you noticed this in 1st year already puts you ahead of 80% students.

Should you DROP OUT and prepare for JEE / VITEEE / SRMJEEE?

Although VIT/SRM is better than Sairam Engineering College, but you may face the same problem. You will not face this type of problem only in some top IITs, but getting seat in those IITs will be difficult.
Instead of dropping immediately, consider:

???? Strategy:

Stay enrolled (degree security)

Reduce emotional investment in college rules

Use:

GitHub

Open-source projects

Hackathons

Internships (remote)

Hardware / software self-projects

This way:

College = formality

Learning = self-driven

Risk = minimal

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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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