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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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 - Jan 25, 2024Hindi
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Hi Sir. I'm 31 years old with a monthly income of 90000. Among that I invest 20000 in ppf and I have several monthly SIPs (Rs 500 each) totaling to Rs. 10000 like Bharat Bonds, HDFC multi cap, Mirai Asset Tax Saver, Nippon India Arbitrage, Quant ELSS, SBI liquid, Parag Parikh Flexi Cap etc. Is it possible to get a monthly return of at least Rs. 30000 from my investments after I turn 60?

Ans: It's commendable that you're prioritizing your financial future at such a young age! Planning for a comfortable retirement is crucial, and your disciplined approach to investing is a great start.

To estimate whether you can achieve a monthly return of Rs. 30,000 from your investments after turning 60, consider the following factors:

Investment Growth: Assess the potential growth rate of your investments over the long term. Equity-oriented funds like HDFC Multi Cap and Parag Parikh Flexi Cap have the potential to deliver higher returns, while debt funds like Bharat Bonds and Nippon India Arbitrage provide stability.
Compounding Effect: Take advantage of the power of compounding by consistently investing over time. By reinvesting dividends and staying invested for the long term, you can potentially amplify your returns.
Regular Review: Periodically review your investment portfolio and make adjustments as needed to ensure it remains aligned with your retirement goals. Consider increasing your investment contributions over time as your income grows.
Consult a Certified Financial Planner: Seek professional advice from a Certified Financial Planner to create a comprehensive retirement plan tailored to your specific needs and objectives. They can provide personalized insights and recommendations to help you achieve your financial goals.
While it's challenging to predict the exact amount you'll receive as monthly income at age 60, with diligent saving and prudent investing, you can work towards building a substantial retirement corpus. Stay disciplined, stay focused on your goals, and continue to invest wisely for a secure financial future.
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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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 07, 2023

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Hi, My age is 49 years. I have been investing in NPS for last 8 years @Rs 1.5L per annum. From 2022, I have started investing in SIP for last one year, ICICI pru Business cycle fund@10 k monthly, ICICI pru midcap fund@5k monthly , ICICI pru MNC fund @10k monthly, ICICI pru small cap@10k monthly and ICICI pru overnight fund@2L lumpsum. Goal is to get 1.75 L per month at the age of 60. Am i on track?
Ans: Dear Bhuvesh,

Thank you for reaching out for financial advice. I appreciate that you have been proactive in planning for your retirement. Based on the information you've provided, here's a high-level assessment of your investment strategy and whether you are on track to achieve your goal of receiving ₹1.75 L per month at the age of 60.

National Pension System (NPS): You have been investing ₹1.5 L per annum in NPS for the last 8 years. Assuming an average annual return of 8%, by the time you reach the age of 60, your NPS corpus could be approximately ₹44 L. You can withdraw 60% of this amount as a lump sum (₹26.4 L), while the remaining 40% (₹17.6 L) will be used to purchase an annuity plan.
SIP investments: You have been investing in various ICICI Prudential mutual funds for the past year. Assuming you continue these SIPs until you turn 60 and achieve an average annual return of 12%, your mutual fund corpus could be as follows:
ICICI Pru Business Cycle Fund: ₹24.8 L
ICICI Pru Midcap Fund: ₹12.4 L
ICICI Pru MNC Fund: ₹24.8 L
ICICI Pru Small Cap Fund: ₹24.8 L
ICICI Pru Overnight Fund: You have invested ₹2 L as a lump sum in this fund. Assuming an average annual return of 5% over the next 11 years, your investment could grow to around ₹3.4 L.
To achieve your goal of ₹1.75 L per month at the age of 60, you will need a corpus that generates this income through interest or dividends. Assuming a conservative annual return of 6% from a post-retirement investment, you would need a corpus of approximately ₹3.5 crores.

Based on the estimates above, your total corpus at the age of 60 could be around ₹1.34 crores (adding all the corpus values mentioned above), which may not be sufficient to generate ₹1.75 L per month as per your goal.

To improve your chances of achieving your target, consider the following:

Increase your SIP investments gradually over time, as your income grows.
Review your mutual fund portfolio periodically to ensure they are performing well.
Diversify your investments to include other assets such as debt funds, fixed deposits, or real estate for a more balanced portfolio.
Revisit your financial goals and adjust your investment strategy as needed.
Please note that these are rough estimates and cannot guarantee the actual outcomes. Your actual returns will depend on market conditions and your investment choices. I recommend consulting a financial advisor for personalized advice tailored to your specific situation and risk appetite.

I hope this information helps you in planning for your retirement.

Best regards,

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 2024

Asked by Anonymous - Feb 20, 2024Hindi
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I m 49yrs, investing in SIP since 2019, started with Rs.10k/month, now Rs.20k/month. This month invested Rs.10lk in 4 equity linked MFs. Expecting Rs.43lks from PPF by 2031. How should I go further to have monthly income of Rs.2lk after 60yrs of age? How can I earn Rs. 80,000 in 12 months by investing just Rs. 4,000? Not possible in my opinion. I will continue to track answers i wish to learn from other experts.. I am 31 years-old & investing INR 110k/ month in various SIPs in India since July 2015. How can I make 10 Crores in 10 years from now? I have invested in PPF and Bank FD, and asset allocation in my SIP portfolio is appropriate as of March 2016. Good job! your thinking process is abolutely perfect. You have a set goal to achieve an end number of Rs10crores. But it will lead to utter failure- I will explain in a moment- And you also have a good savings rate of Rs1.1l per month which adds up to Rs13.2l per year. So assume even if your investments yield 0% returns over the long period it would still amount to Rs1.32crores. Now don’t get upset when I say 0% returns. When you invest in equities, you have the worst scenario in your mind before you venture. Preparing for the worst is preparing to succeed. Now lets look at your preferred mode of If I invest 15000 INR every month in SIPs, how much returns can I expect by the end of 15-20 years? *Answering this question from my perspective* As I am going to invest for a long term, I would choose EQUITY funds. ( No debt or hybrid) Per month I am going to invest Rs 15000. So, it amounts to 1 lakh 80 thousand per year and 36 lakhs for 20 years. In this case, I am assuming an annual returns of 12% as it is equity fund and any good equity fund can give 12% returns. At the end of 15 years, Amount Invested= 27 lakhs Wealth Gain= 48.7 lakhs Expected Total amount= 75.7 lakhs At the end of 20 years, Amount Invested= 36 lakhs Wealth Gain= 1.1 crore Expected Total amount= 14987219 ( 1.5 Crores) I hope this an If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? Rs. 10000 per month means 240 percent per annum rate of interest You cannot get through investments anywhere in the world If you have financial discipline and know the techniques of doing any business activity, you can definitely get the return in the long run See the example: Buy clothes worth Rs. 50000 (need not be in a single day). You have purchased 500 pieces at Rs. 100 per piece. Start selling th Where should I invest Rs 30,000 every month? Hey Keshav, I am not a Financial Adviser, so i can’t advise where to invest, but here’s what i will do as a middle class investor. Split that 30K into three parts: 15,000 - Plan A I will invest this money in Fixed , PPF or RD deposit every month without fail, i will make sure, all the interest generated will also be put back into this account again and again. until i really need it for emergency or re-investing it in Home down payment, This money will only be for the most important need. 10,000 - Plan B I will take the next 10K, and split it in to 7K and 3K. With 7K i will find two good mutual funds If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? First of all, any mutual fund question is incomplete without a Goal and Individual Age. Have you thought why you are investing 3000 and till what period ? What is your target amount? Without having answers to these questions it doesn't matter you invest in 1 fund or 100 funds. Now for your purpose we make assumption that you are now 25 years old and you need 80 lakhs amount for your child higher education after 25 years (that is your child may be at a age of 21) So as you are investing early I assume you could take a bit higher risk and target small cap funds with 15% annual returns expectation I If I invest 2,000 rupees per month in SIP for 10 years, in which fund should I invest, and how much will I get a return after 10 years? My suggestion would be to go for Mid Cap Mutual Funds. There are quite a number of Good Mid Cap Funds available for investments like: Quant Mid Cap Fund, Nippon India Growth Fund, HDFC Mid Cap Opportunities fund, SBI Magnum Mid Cap fund etc. etc. Now how much you will get after 10 Years. For Example Quant Mid Cap Fund - Direct Plan has NAV of Rs 197.99 its 3 years returns are 36.83 % and returns since launch of fund is 18.64 % and its assets under management is Rs 3781 Crores. Suppose you do Monthly SIP in this fund for 10 years or 120 months and we assume the fund will return 15 % average then you I want to invest in SIP, 1000 per month for 5 years. Is there any SIP available with this amount? You can start your investment in mutual funds via SIP of Rs. 1000 for 5 years. Checkout following schemes in which you can begin your investment. Reliance Tax Saver ELSS G Axis Long Term Equity Fund G SBI Magnum Multicap Fund G ICICI Pru Value Discovery Fund G L&T Tax Saver Fund G HDFC Long Term Advantage Fund G Franklin India Tax Shield Fund G Sundaram Diversified Equity G UTI Mastershare G UTI Balanced Fund G UTI Bond Fund G Sundaram Money Fund G Following calculations are takes place : Monthly Investment (SIP) = Rs. 1000 Time Horizon (in years) = 5 years Expected Return (%) = 12.5 Total SIP Amount Invested What should I do with Rs. 50,000 to earn Rs. 10,000 per month? There are lots of things you can do with your Rs 50,000 but if you invest in bitcoin, stock exchange or start trading you first have to know how these things work don't Just invest blindly. I would suggest you invest it in yourself get knowledge, get smarter. Look at it this way right now the 2ND richest person on this planet is Jeff Bozos the CEO of Amazon. Yes he's a billionaire. Now think about it for a second does Amazon have physical store ? No. Does it advertise on TV ? No. It all started form internet and it's where it generates it's traffic from. In America about 50% of people earn from I want to invest 15-20k per month in SIP, how much return is expected after say 2-3 years? Of Rs.20,000 invest Rs.10,000 in Equity mutual funds, Rs.5,000 in Balanced funds and Rs.5,000 in Debt mutual funds. Normally it will more than 3 years to see decent return from equity & balanced mutual funds but the return will be good around 13% to 15% (Tax free). As for debt funds, you will see returns sooner and it will be around 9% (Taxable). In three years returns won’t be much. You will be investing around Rs.7 lakh and you may have return of around Rs.60,000 after 3 years. But as years goes on, power of compounding takes effects and you will see massive returns in long term like in 15 ye I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? I recommend you to invest in yourself by doing a professional course so that you stop asking these type of question. By investing money in yourself you may open a business for yourself and can much more. On investment term, the monthly return of 20% is possible only in a poonzi scheme where chances of losing money are very high. How can I generate a monthly income of Rs 50,000 from Rs 20 lakh? Learn “Income investing” method which goes on like this: Buy a basket of banks : HDFC BANK, ICICI and Kotak. These 3 make the major market cap of all banks. You can put these “Shares as Margin” with good brokers like ICICIDIRECT and get up to 85% of amount as margin. Thus investment of 20L gives u a margin of about 17L. Sell Banknifty (BN) call contracts about 40–50 days from current date and such that the premium comes close to ?50,000 ?50k premium needs to write 2500 points of BN contracts as the lot size is 20. Writing 1 Lot requires about 60k of capital. With 17L capital, you can write about 2 If I invest 1000 per month in SIP for 20 years, how much will I return after 20 years? For this amount, which fund is best for me? If you Invest in SBI Small Cap Mutual Fund thru SIP of Rs 1000 per month for 20 Years or 240 months then your Expected Fund value at the end of the 20 th Year would be Rs 24,38,856.38 approx. SBI Small Cap Fund is currently returning 25.81 % average since its launch. However, in the above calculation I have considered only 20 % average returns. Your total Investment Rs 1... If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? It depends. If u want to have sound sleep in nights without worrying about fluctuations, balanced advantage funds r great. In theory they follow the principle of BUY LOW and SELL HIGH. Again it's a very individual preference. Everyone is UNIQUE and should invest as per his/her capacity and personal situation. Ideal would be to invest in combination of NIFTY 50 index funds and NIFTY next 50 index funds Again the proportion can vary from 70:30 to 50:50. Many people will say I have high risk tolerance but remember to recover 5% loss u haveto earn double 10 % of profit and so on. So it's better to have hi If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? Where do I invest Rs. 2000 per month for SIP? What if I started investing 2000rs / month in SIP for 40 years? Which SIPs are good for investing Rs 500 per month to get Rs 20 lakh and above after 16 years? Which are the best long-term MF SIPs to invest Rs. 4,000 per month? How do I invest 500 Rs per month? What capital do I need to invest to get Rs.20K per month in dividends? I want to invest 5000 (fixed) as SIP every month for my sister for 10-15 years for a corpus of 30 lakhs. What are some good funds for investment?
Ans: It's great that you're exploring investment options and seeking advice. Investing in SIPs can be a prudent way to build wealth over the long term. Here are some general considerations and principles to keep in mind:

Diversification: It's often recommended to diversify your investments across different asset classes and fund categories. This helps spread risk and maximize potential returns. Consider allocating your investments across equity, debt, and balanced funds based on your risk tolerance and investment objectives.

Investment Horizon: Determine your investment horizon, which refers to the length of time you plan to stay invested before needing to access the funds. Longer investment horizons typically allow for more aggressive investment strategies, whereas shorter horizons may necessitate a more conservative approach.

Risk Tolerance: Assess your risk tolerance carefully and choose funds that align with your comfort level. Equity funds tend to offer higher potential returns but also come with higher volatility and risk. Debt funds, on the other hand, offer lower risk but typically lower returns.

Expense Ratio: Pay attention to the expense ratio of the mutual funds you're considering. Lower expense ratios can translate to higher returns for investors over the long term, as less of the fund's assets are consumed by fees and expenses.

Fund Performance: While past performance is not indicative of future results, it's still essential to review the historical performance of mutual funds before investing. Look for funds with a consistent track record of delivering returns that align with your investment goals.

Review Regularly: Regularly review your investment portfolio and make adjustments as needed based on changes in your financial situation, investment goals, and market conditions. Rebalancing your portfolio periodically can help ensure that it remains aligned with your objectives.

Seek Professional Advice: If you're unsure about which funds to choose or how to construct a well-diversified portfolio, consider seeking advice from a qualified financial advisor. An advisor can assess your individual circumstances and help tailor an investment strategy that meets your needs.

Remember that investing involves risks, and it's essential to conduct thorough research and exercise due diligence before making any investment decisions. By following these principles and investing consistently over time, you can work towards achieving your financial goals.

Best regards.

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 06, 2024Hindi
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Hello Sir, I am NRI - 38 Yr Old, I am targeting for 20 Cr..Currently investigating 65K/ Month in MF for last 4 Yr with additional 50K/Min Stock and 20K/M in ETF, 12.5K/ Month in NPS and 12.5K/Month in PPF for last 6 Yrs, 20K / M in US Stock, 10K/ Month in Crypto. Can i reach the target by age 60, Thanks for your feedback
Ans: that's impressive! You're investing a significant amount across various asset classes - a good first step towards your ambitious goal of Rs. 20 crore by age 60. Let's analyze your strategy and discuss some key points:

1. Disciplined Investor!

Thumbs Up! You're consistently investing in Mutual Funds (MFs), Equity Linked Schemes (ELSS/PPF), National Pension System (NPS), US Stocks, and even Crypto. This shows discipline and a willingness to explore various avenues.

Diversification is Key! Investing across asset classes like Equity (MFs, US Stocks), Debt (PPF, NPS), and Crypto helps spread risk. However, the weightage in each class needs evaluation.

2. Aggressive Approach:

High Target! Reaching Rs. 20 crore in 22 years (60 - 38) requires a high return rate. Historically, a balanced portfolio of actively managed Equity Funds (targeting 12-15% return) may not be enough on its own.

Risk and Reward: Allocating a significant portion to Crypto (high risk, high potential return) and individual Stock Picking (potentially higher returns but requires in-depth research) can increase your chances of achieving your target, but also increases risk.

3. Seek Expert Guidance:

Professional Help! A Certified Financial Planner (CFP) can analyze your risk tolerance, investment horizon, and goals. They can recommend an optimized asset allocation across MFs, NPS, PPF (debt-oriented), and potentially a smaller allocation to US Stocks and Crypto based on your risk profile.

Regular Review: The market keeps changing. A CFP can help you periodically review your portfolio, rebalance if needed, and ensure your strategy remains on track for your long-term goal.

Remember, reaching a goal of Rs. 20 crore requires a well-defined strategy, discipline, and potentially a high risk tolerance. Consulting a CFP can help you create a personalized plan and increase your chances of success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Latest Questions
Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 29, 2024Hindi
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I am 34 and earning 1.3 lac can you please help me how to save so that i can happily retire
Ans: At 34, with a monthly income of 1.3 lakh, you have a solid foundation for planning your retirement. Here's how you can save effectively to ensure a comfortable retirement:

Assess Your Current Financial Situation:
1. Evaluate Expenses:
Start by tracking your monthly expenses to understand your spending habits and identify areas where you can potentially save.
2. Build an Emergency Fund:
Set aside a portion of your income as an emergency fund to cover unexpected expenses or financial setbacks. Aim for at least 3 to 6 months' worth of living expenses.
Create a Retirement Plan:
3. Determine Retirement Goals:
Define your retirement goals, including the age at which you want to retire and the lifestyle you envision during retirement.
4. Estimate Retirement Expenses:
Estimate your future expenses during retirement, considering factors such as healthcare costs, inflation, and leisure activities.
Implement Savings Strategies:
5. Contribute to Retirement Accounts:
Maximize contributions to retirement accounts such as Employee Provident Fund (EPF), Public Provident Fund (PPF), and Voluntary Provident Fund (VPF) to benefit from tax advantages and compound interest.
6. Invest in Equity Mutual Funds:
Consider investing in equity mutual funds for long-term growth potential. Choose funds with a proven track record and align with your risk tolerance.
7. Diversify Investment Portfolio:
Diversify your investment portfolio across asset classes such as equities, bonds, and fixed deposits to minimize risk and optimize returns.
Seek Professional Guidance:
8. Consult a Certified Financial Planner:
Work with a Certified Financial Planner to develop a customized retirement plan based on your financial goals, risk tolerance, and time horizon.
They can provide personalized advice and strategies to help you achieve your retirement objectives efficiently.
Stay Committed to Your Plan:
9. Regularly Review and Adjust:
Periodically review your retirement plan and investment portfolio to ensure they remain aligned with your goals and objectives.
Make adjustments as necessary based on changes in your financial situation, market conditions, and life circumstances.
Conclusion:
By following these steps and staying disciplined in your savings and investment approach, you can build a substantial retirement corpus and enjoy a financially secure and fulfilling retirement.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 28, 2024Hindi
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10 Sal 4 mahine ka Mera job hai 58 year complete ho gaya hai pension bhi 58 year hone ke bad band ho gaya tha final withdrawal 19 form lagakar kiya tha reason 55 year ka de rahe hain ismein Main Kya kar sakta hun
Ans: Since you've completed 58 years of age and your job has lasted for 10 years and 4 months, it seems you're contemplating your options after ceasing your pension and completing the final withdrawal with Form 19, citing the reason as 55 years. Here's what you can consider:

Understanding Retirement Options:
1. Explore Alternative Income Sources:
Consider exploring alternative sources of income such as part-time work, freelance opportunities, or consulting services to supplement your financial resources.
Evaluate your skills and expertise to identify potential avenues for generating income during retirement.
2. Review Investment Portfolio:
Review your investment portfolio to ensure it aligns with your retirement goals and risk tolerance.
Seek guidance from a Certified Financial Planner to optimize your investment strategy and maximize returns.
3. Assess Social Security Benefits:
Determine if you are eligible for any social security benefits or government schemes that could provide additional financial support during retirement.
Consult with relevant authorities or financial experts to explore available options for accessing social security benefits.
4. Consider Delaying Retirement:
Evaluate the option of delaying your retirement to continue earning a steady income and build a larger retirement corpus.
Assess your health, lifestyle preferences, and financial obligations before making a decision to postpone retirement.
5. Seek Professional Advice:
Consult with a Certified Financial Planner to develop a comprehensive retirement plan tailored to your specific financial situation and goals.
Discuss various retirement options, investment strategies, and income sources to make informed decisions for your retirement years.
Conclusion:
As you navigate your retirement journey, it's essential to explore various income sources, review your investment portfolio, assess social security benefits, consider delaying retirement if feasible, and seek professional advice from a Certified Financial Planner. By taking proactive steps and making informed decisions, you can secure a financially stable and fulfilling retirement.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 26, 2024Hindi
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Hello sir, I am just new in sip. I wanted to what will be the best way to start? Which ones to choose to get good returns in long term? My risk appetite is medium or above. Thank you
Ans: Starting Your SIP Journey: A Guide for New Investors
Welcome to the world of SIPs! Starting your SIP journey is an exciting step towards building wealth for the future. Let's explore the best way for you to begin and identify suitable investment options for achieving good returns over the long term.


Congratulations on taking the initiative to start your SIP journey! Your decision to invest in SIPs demonstrates a proactive approach towards securing your financial future.

Understanding Your Investment Goals and Risk Appetite
Investment Goals:
Define your financial goals and objectives, considering factors such as retirement planning, wealth creation, or education funding.
Establishing clear investment goals will help you select SIPs that align with your objectives.
Risk Appetite:
Assess your risk tolerance to determine your comfort level with market volatility.
Since you indicate a medium to high risk appetite, you may consider equity-oriented SIPs for potentially higher returns.
Choosing SIPs for Long-Term Growth
Equity Mutual Funds:
Equity mutual funds have historically delivered higher returns over the long term compared to other asset classes.
Consider diversified equity funds, large-cap funds, multi-cap funds, or thematic funds based on your risk appetite and investment horizon.
Balanced Funds:
Balanced funds, also known as hybrid funds, offer a mix of equity and debt investments, providing a balanced approach to risk and return.
These funds can be suitable for investors seeking moderate risk exposure with relatively stable returns.
Thematic Funds:
Thematic funds invest in specific sectors or themes, offering exposure to emerging trends or industries.
While thematic funds can potentially generate higher returns, they also carry higher risk due to concentrated exposure.
Constructing Your SIP Portfolio
Diversification:
Maintain a well-diversified SIP portfolio across different asset classes, sectors, and fund categories to reduce risk.
Avoid concentration in any single investment or sector to mitigate the impact of market fluctuations.
Regular Review and Rebalancing:
Periodically review your SIP portfolio to assess performance and ensure alignment with your financial goals.
Consider rebalancing your portfolio if necessary to maintain the desired asset allocation.
Getting Started with SIPs
Selecting SIPs:
Research and shortlist mutual funds based on their track record, fund manager expertise, investment philosophy, and risk-adjusted returns.
Consult with a Certified Financial Planner to identify SIPs that align with your financial goals and risk profile.
Systematic Investing:
Start your SIPs with an amount you are comfortable investing regularly, considering your cash flow and financial obligations.
Set up SIPs for a fixed amount at regular intervals (e.g., monthly or quarterly) to benefit from rupee cost averaging.
Conclusion: Embarking on Your SIP Journey
Starting your SIP journey requires careful consideration of your investment goals, risk appetite, and fund selection. By choosing suitable SIPs aligned with your long-term financial goals and regularly monitoring your portfolio's performance, you can lay a solid foundation for wealth creation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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I am 63 years old. I have invested rs 500000 in sbi dynamic fund. I have other investment in mm flexi cap fund union large and mid cap fund sbi magnum midcap fund union innovation and opportunities fund. Pl advise slow moving dynamic fund is to be continu ed.
Ans: Evaluating Your Investment Portfolio for Retirement
Congratulations on proactively planning for your retirement at 63! Let's analyze your current investment portfolio to ensure it aligns with your financial goals and risk tolerance.


Your commitment to investing at this stage of life showcases commendable financial discipline and foresight for securing your retirement.

Understanding Your Investment Portfolio
Current Investments:
SBI Dynamic Fund: Rs. 5,00,000
Other Investments: [List other funds]
Assessing the SBI Dynamic Fund
Performance Evaluation:
Review the historical performance of SBI Dynamic Fund to determine its consistency in delivering returns.
Compare its performance with benchmarks and peer funds to assess its relative strength.
Risk Analysis:
Evaluate the risk associated with SBI Dynamic Fund, considering its asset allocation strategy and volatility.
Assess your risk tolerance to ensure the fund's risk profile aligns with your investment objectives.
Considering Investment Continuation
Investment Strategy Alignment:
Determine if the investment strategy of SBI Dynamic Fund complements your retirement goals and risk appetite.
Ensure the fund's dynamic asset allocation approach suits your preference for active management.
Portfolio Diversification:
Assess the overall diversification of your investment portfolio, including exposure to different asset classes and sectors.
Ensure adequate diversification to mitigate risk and optimize returns across your investment holdings.
Making an Informed Decision
Review and Rebalancing:
Regularly review your investment portfolio to monitor performance and make adjustments as needed.
Consider rebalancing your portfolio periodically to maintain the desired asset allocation and risk exposure.
Consultation with Financial Advisor:
Seek advice from a Certified Financial Planner to gain insights tailored to your specific financial situation and retirement goals.
Discuss potential alternatives or adjustments to your investment strategy based on expert recommendations.
Conclusion: Decision-making Process
Based on the assessment of your investment portfolio, consider whether continuing with SBI Dynamic Fund aligns with your retirement objectives and risk tolerance. Consultation with a financial advisor can provide valuable guidance in making informed decisions.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 26, 2024Hindi
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I am 50.5 yrs working in PSU. I have 3.5 Cr in PF/PPF , 1Cr in Shares/Mutual Fund/ULIP. I target 3L/month when I retire in 2033. What to do ???
Ans: Evaluating Retirement Planning Options for Long-Term Financial Security
As you approach retirement age, it's essential to reassess your financial portfolio and make strategic decisions to ensure a comfortable and secure retirement. Let's analyze your current financial situation and explore potential avenues to achieve your retirement income target.


Your proactive stance towards retirement planning reflects a commendable commitment to securing your financial future and maintaining a desirable standard of living post-retirement.

Understanding Your Financial Portfolio
Current Assets:
Provident Fund (PF) and Public Provident Fund (PPF): Rs. 3.5 Crores
Shares, Mutual Funds, and ULIPs: Rs. 1 Crore
Retirement Income Target:
Monthly Income Target: Rs. 3 Lakhs
Retirement Year: 2033
Assessing ULIPs as an Investment Option
Disadvantages of ULIPs:
High Charges: ULIPs often come with substantial charges, including premium allocation charges, policy administration fees, and fund management expenses, which can erode potential returns over time.
Complex Structure: The intricate design of ULIPs may make it challenging for investors to understand the underlying costs and benefits associated with the investment.
Recommendation: Withdraw and Reinvest in Mutual Funds
Considering the disadvantages associated with ULIPs, it may be prudent to withdraw your investments and reinvest the proceeds in mutual funds.
Mutual funds offer greater transparency, lower costs, and a more diversified investment approach, potentially leading to higher returns over the long term.
Crafting a Retirement Investment Strategy
Portfolio Reallocation:
Allocate a significant portion of your retirement corpus towards diversified equity mutual funds, considering your long investment horizon and risk appetite.
Balance your portfolio with debt mutual funds to mitigate risk and ensure stable returns, particularly as you approach retirement age.
Systematic Withdrawal Plan (SWP):
Implement a systematic withdrawal plan (SWP) from your mutual fund investments to generate a steady stream of income post-retirement, aligning with your desired monthly income target.
Conclusion: Securing Your Retirement Future
By withdrawing your investments from ULIPs and reinvesting in mutual funds, you can optimize your retirement portfolio for long-term growth and income generation. Additionally, implementing a systematic withdrawal plan will help you achieve your retirement income target while maintaining financial stability and security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 26, 2024Hindi
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Sir I am going to retire this month, April. My corpus fund may be arround 1.5 cr. I have planned for 30 laks for Senior citizens scheme. 10 laks for SWP. FD my name 10 laks and children names 10 laks each 5 laks two children. Can suggest a best investment plan for the remaining amount please
Ans: Crafting a Comprehensive Investment Plan for Financial Growth
As a Certified Financial Planner, I admire your commitment to securing your financial future through strategic investments. Let's delve into crafting an investment plan tailored to your goals and risk tolerance.

Genuine Appreciation for Your Financial Goals
Kudos on taking proactive steps towards building wealth and achieving financial independence. Your dedication to financial planning is commendable and sets a solid foundation for long-term success.

Analyzing Investment Options for Growth
Understanding Your Needs:
Assess your financial goals, risk tolerance, and investment horizon to tailor a personalized investment strategy.
Evaluating Investment Avenues:
Explore a range of investment options, including equities, mutual funds, bonds, and alternative assets, to diversify your portfolio and optimize returns.
Mitigating Risks:
Balance the potential for growth with risk management strategies to safeguard your investments against market volatility.
Investment Recommendations for Long-Term Growth
1. Equity Investments:
Consider allocating a portion of your portfolio to quality stocks or equity mutual funds to capitalize on the growth potential of the stock market.
2. Mutual Funds:
Invest in actively managed mutual funds managed by experienced fund managers to benefit from their expertise in navigating market fluctuations and identifying growth opportunities.
3. Fixed Income Instruments:
Include fixed income instruments such as bonds or debt mutual funds to provide stability and generate regular income streams while preserving capital.
4. Systematic Investment Plan (SIP):
Implement SIPs in mutual funds to benefit from rupee cost averaging and discipline in regular investing, which can lead to long-term wealth accumulation.
5. Portfolio Review and Adjustment:
Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance.
Make necessary adjustments based on changes in market conditions, personal circumstances, and financial objectives.
Conclusion and Best Regards
By adopting a diversified investment approach and staying committed to your long-term financial goals, you're poised to achieve significant wealth accumulation and financial security. Keep monitoring your investments and remain open to adjustments as needed to maximize returns and mitigate risks effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 25, 2024Hindi
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Sir, Recently my PPF got matured and received 15L. How should I invest the money?
Ans: Investing the Maturity Amount from PPF Wisely
As a Certified Financial Planner, I understand the importance of making informed investment decisions to maximize returns and achieve your financial goals. Let's explore potential investment options for the maturity amount of your Public Provident Fund (PPF).


Congratulations on the maturity of your PPF account! It's a significant financial milestone, and it presents an opportunity to make prudent investment choices for your future financial security.

Assessing Investment Options
Diversification:
Consider diversifying your investment portfolio across various asset classes to mitigate risk and optimize returns.
Liquidity:
Balance the need for liquidity with long-term growth potential when selecting investment avenues.
Financial Goals:
Align your investment decisions with your short-term and long-term financial goals to ensure they are in line with your overall financial plan.
Investment Recommendations
1. Equity Mutual Funds:
Consider investing a portion of the maturity amount in equity mutual funds to benefit from long-term capital appreciation.
Choose funds with a track record of consistent performance and managed by experienced fund managers.
2. Debt Instruments:
Allocate a portion of the funds to debt instruments such as fixed deposits (FDs), bonds, or debt mutual funds to provide stability and regular income.
Opt for instruments with varying maturities to create a ladder for liquidity and flexibility.
3. Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs):
Explore opportunities in REITs or InvITs for exposure to real estate and infrastructure assets, offering potential income and capital appreciation.
4. Emergency Fund:
Set aside a portion of the maturity amount as an emergency fund to cover unexpected expenses and ensure financial stability.
5. Consultation:
Consider seeking advice from a qualified financial advisor to tailor an investment strategy that aligns with your risk tolerance, investment horizon, and financial objectives.
Conclusion and Best Regards
By diversifying your investment portfolio across equity, debt, and alternative assets, you can optimize returns while managing risk effectively. Keep a long-term perspective and periodically review your investments to ensure they remain aligned with your financial goals and evolving needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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I am 48 , two kids aged 19 and 12. I want to retire at 50. I have my own house fully paid off. I have investments/savings of 4.5 Cr in real estate, PF,PPF and Stocks (Out of that, 2.5 Cr is in real estate other than house I own) I get rental income of 50k per month.My current expense is 1.5 lacs. How do I plan my retirement
Ans: Retirement Planning for Financial Security
As a Certified Financial Planner, I understand your goal of retiring at 50 and ensuring financial security for yourself and your family. Let's outline a retirement plan tailored to your needs and circumstances.


I commend your proactive approach to retirement planning, which is essential for achieving financial independence and peace of mind.

Retirement Planning Strategy
Assessing Current Assets:
Real Estate: 2.5 Cr (excluding primary residence)
PF, PPF, Stocks: 2 Cr
Rental Income: 50k/month
Current Expenses: 1.5 lacs/month
Considerations:
Real Estate: Illiquid and may not provide immediate liquidity during retirement.
Direct Stocks: Riskier due to market fluctuations and lack of diversification.
Retirement Plan:
Evaluate Real Estate Holdings:

Assess the potential for selling a portion of your real estate investments to generate liquidity for retirement.
Consider retaining properties with stable rental income and selling those with lower yields or higher maintenance costs.
Diversify Investments:

Allocate a portion of the proceeds from real estate sales and stocks towards diversified investment options such as mutual funds (MFs).
Choose MFs with a balanced allocation across asset classes to manage risk effectively.
Systematic Withdrawal Plan (SWP):

Utilize SWP from MF investments to create a steady stream of retirement income.
Determine a withdrawal rate that meets your income needs while ensuring sustainability of your portfolio.
Emergency Fund:

Maintain an emergency fund equivalent to 6-12 months of living expenses to cover unforeseen expenses during retirement.
Review and Adjust:

Periodically review your retirement plan to account for changes in financial goals, market conditions, and personal circumstances.
Adjust asset allocation and withdrawal strategy as needed to maintain financial stability and meet evolving needs.
Conclusion and Recommendation
To achieve a secure retirement at 50, consider reallocating a portion of your real estate and stock investments into MFs to create a diversified portfolio with liquidity. Implement a SWP strategy to generate regular retirement income while preserving capital for the future. Regularly review and adjust your retirement plan to ensure it remains aligned with your financial objectives and lifestyle needs.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Hi, I was contributing to Provident Fund from 1994 until 2007 during my employment with companies in India. In 2008, i became a British Citizen, living in the UK, however i never applied for withdrawal of the Provident Fund amount. Is there a way i can apply for the money to be withdrawn and what will be the process. I have my PF number, but no other details. Please advise. Regards - Kiran
Ans: guidance on Withdrawal of Provident Fund After Relocating Abroad
As a Certified Financial Planner, I understand your concern regarding the withdrawal of your Provident Fund (PF) after relocating to the UK. Let's explore the process and steps involved in withdrawing your PF amount.


I appreciate your proactive approach in addressing your financial affairs, which is crucial for securing your future financial well-being.

Understanding the Situation
Employment History:
Contributed to Provident Fund from 1994 to 2007 during employment in India.
Became a British Citizen in 2008 and relocated to the UK.
Current Status:
Have PF number but no other details regarding the account.
Process for PF Withdrawal
Step 1: Contacting the Provident Fund Office
Reach out to the nearest Provident Fund Office in India.
Provide your PF number and personal details to inquire about the status of your account.
Step 2: Verification of Identity and Documentation
Submit identity verification documents, such as passport or Aadhaar card, to authenticate your identity.
Complete any additional documentation required by the Provident Fund Office.
Step 3: Application for Withdrawal
Fill out the necessary withdrawal forms provided by the Provident Fund Office.
Specify the reason for withdrawal as relocation abroad and provide supporting documentation if required.
Step 4: Processing and Transfer of Funds
The Provident Fund Office will process your withdrawal request and transfer the funds to your designated bank account.
The processing time may vary, so it's essential to follow up with the office periodically.
Additional Considerations
Tax Implications:
Consult a tax advisor to understand the tax implications of withdrawing PF funds, both in India and the UK.
Consider any tax treaties between India and the UK that may impact the taxation of your PF withdrawal.
Currency Exchange:
Plan for currency conversion if the funds are transferred to your UK bank account, considering exchange rate fluctuations.
Conclusion and Recommendation
I recommend initiating the process of PF withdrawal by contacting the nearest Provident Fund Office in India. Provide the necessary documentation and follow the prescribed steps to facilitate the withdrawal of your PF amount. Additionally, seek guidance from a tax advisor to understand any tax implications associated with the withdrawal.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |2476 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Sir, I am investing in two sectorial funds to have reasonable down payment for buying a flat after 12 years. I am investing 4000 rs each in these funds. 1. Canara robeco infrastructure fund 2. ICICI Pharma healthcare and diagnostic fund. Should I continue with these funds for making a corpus of 30 lakhs in 12 years.
Ans: Assessing Sectoral Funds for Down Payment Goal
As a Certified Financial Planner, I understand the importance of selecting appropriate investment avenues to achieve your financial goals. Let's evaluate your current investments in sectoral funds and assess their suitability for your down payment goal.


I appreciate your proactive approach to financial planning, focusing on specific goals such as a down payment for buying a flat. Goal-centric investing is key to achieving financial milestones effectively.

Analyzing Sectoral Funds
Canara Robeco Infrastructure Fund:
Invests in companies within the infrastructure sector, which includes sectors like construction, engineering, and utilities.
Subject to risks associated with the infrastructure sector, such as regulatory changes, economic cycles, and policy shifts.
ICICI Pharma Healthcare and Diagnostic Fund:
Focuses on companies within the pharmaceutical, healthcare, and diagnostic sectors.
Susceptible to regulatory changes, patent expirations, and market dynamics within the healthcare industry.

Put all your eggs in one basket? Sectoral funds gamble on a single industry, exposing you to big swings if that sector stumbles. Unlike diversified funds, they lack balance, meaning a downturn in your chosen sector could drag your entire investment down. For a smoother ride, consider spreading your bets across a wider range of industries thru diversified equity funds.
Evaluating Suitability for Down Payment Goal
Pros of Sectoral Funds:
High Growth Potential: Sectoral funds can offer high growth potential during periods of sector-specific outperformance.
Focused Exposure: Provides concentrated exposure to specific sectors, allowing for potential gains if the selected sectors perform well.
Cons of Sectoral Funds:
High Risk: Sectoral funds are inherently riskier due to their concentrated exposure, making them prone to volatility and sector-specific risks.
Lack of Diversification: Limited diversification compared to diversified equity funds, increasing vulnerability to sector downturns.
Considering Alternative Investment Strategies
Diversified Equity Funds:
Offer broader exposure to various sectors and industries, providing better risk management and diversification benefits.
Suitable for long-term wealth accumulation goals with lower volatility compared to sectoral funds.
Conclusion and Recommendation
Given the risks associated with sectoral funds and the importance of capital preservation for your down payment goal, I recommend considering alternative investment strategies such as diversified equity funds. Diversified equity funds offer broader exposure and better risk management, aligning with your goal of accumulating a down payment corpus over 12 years.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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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