I'm 39 years Old - Need your advise - I have yet to start the SIP or Mutual investments in my life due to fear factor. But i thought i can start something now due to age and plan for my kids wellness.
Currently My Investments will be as per below:

1. LIC Jeevan Anand - 60k Per Year
2. LIC Super Annuation 84k Per year
3. NPS - 57K Per year

Please advise for investments.

Ans: The data you have given is not sufficient. Hence a generic response to you:
- Ideally, you should do a financial plan to map all your needs including that of your daughters education/marriage and your retirement at least.
- Invest as much as you can on a monthly basis. Your retirement is not really far away and needs are also likely to overlap with your retirement age.
- Do take sufficient life cover since you have dependents.
- SIPs are a good way to invest. You can invest in a combination of large and midcap funds. As you come closer to retirement or your needs, you can derisk your investments.
- Take care of your tax planning and make investments that will both optimise your tax and grow your wealth.

Ans: Hi Amarnath, thanks for writing to me.

You can consider starting monthly SIP's:

1-Edelweiss NIFTY 100 Quality 30 Index Fund-Growth-Rs.1,250
2-Axis ESG Equity Fund-Growth-Rs.1,250
3-Samco Flexicap Fund-Growth-Rs.1,250
4-UTI Nifty 50 Index Fund-Growth-Rs.1,250

Ans: Hello Rahul Ji,

I appreciate that you are thinking about your retirement and your children's future. As a financial advisor, I would be happy to help you start investing in mutual funds and SIPs. Before diving into specific suggestions, let's first understand your financial goals and risk appetite.

Given your age and monthly income, you should aim to diversify your investments for long-term wealth creation and financial stability. While RDs and FDs offer low risk and guaranteed returns, they may not be sufficient for higher returns and beating inflation in the long run. Mutual funds and SIPs can help you achieve better returns, provided you make well-informed decisions and stay invested for a long period.

Here are some steps to help you get started:

Define your goals: Identify the specific financial goals you want to achieve through your investments, such as your retirement corpus and your children's higher education or marriage expenses.
Assess your risk appetite: Determine your willingness and ability to take risks in your investments. As you have been investing in FDs and RDs, it seems that you prefer low-risk options. However, considering your age and goals, you may want to include some moderate to high-risk investments in your portfolio for better returns.
Diversify your portfolio: Invest in a mix of equity, debt, and hybrid mutual funds to spread the risk and optimize returns. You can consider investing in large-cap, mid-cap, and small-cap funds, balanced funds, and debt funds based on your risk appetite and goals.
Start with SIPs: Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in a mutual fund, which helps in inculcating a disciplined savings habit and averaging out market volatility.
Consult a financial advisor: For personalized advice, you may want to consult a professional financial advisor who can help you select the right funds and create a tailored investment plan based on your goals, risk appetite, and investment horizon.
Remember, mutual fund investments are subject to market risks, and it's essential to stay informed and monitor your investments periodically. I hope this helps you get started on your journey to financial planning for your retirement and children's future.

Wishing you all the best, Rahul Ji!

Warm Regards,
Hardik

Ans: Let's explore your investment options to achieve good returns over the next decade. Considering your goals and financial situation, here are some suggestions:

Investment Goals
Regular Investment: Investing Rs 30,000 every month for 10 years.

Stock Market Investments: Diversifying into stocks and mutual funds for better returns.

Secure and Growth-Oriented Portfolio: Balancing risk with potential growth.

Stock Market Investments
1. Direct Equity Investments:

Invest in fundamentally strong companies.

Focus on sectors with high growth potential.

Regularly monitor and review your portfolio.

2. Actively Managed Mutual Funds:

These funds are managed by experienced fund managers.

They aim to outperform the market by selecting high-potential stocks.

Offer better returns compared to passive index funds.

Systematic Investment Plan (SIP)
1. Consistent Investments:

SIP allows you to invest a fixed amount regularly.

It averages out the cost of purchase.

Suitable for long-term wealth creation.

2. Benefits of Regular Funds via MFDs:

Professional Guidance: An MFD with CFP credential provides expert advice.

Market Insights: Helps in selecting the right funds.

Regular Monitoring: Ensures your investments align with your goals.

Asset Allocation
1. Diversification:

Spread investments across different asset classes.

Reduces risk and enhances returns.

2. Risk Management:

Mix of equity, debt, and hybrid funds.

Adjust the allocation based on market conditions.

Debt Investments
1. Fixed Deposits and Bonds:

Provide stable and low-risk returns.

Suitable for capital preservation.

2. Public Provident Fund (PPF):

Long-term savings scheme with tax benefits.

Offers attractive interest rates.

Gold Investments
1. Gold Schemes:

Hedge against inflation and market volatility.

Invest in gold bonds or mutual funds.

Insurance
1. Term Insurance:

Ensure adequate life cover for your family.

Pure protection plan without investment components.

Regular Review and Adjustment
Periodic Reviews: Regularly review your portfolio.

Adjustments: Make necessary adjustments based on performance.

Avoid Common Pitfalls
1. Direct Funds:

Lack professional guidance.

May not align with your financial goals.

2. Index Funds:

Passive in nature.

Do not aim to outperform the market.

3. Annuities:

Often have lower returns.

Lack flexibility compared to mutual funds.

Final Insights
Investing Rs 30,000 monthly in stocks, mutual funds, and SIP can yield significant returns over 10 years. Diversify your portfolio, seek professional guidance, and review investments regularly. Avoid direct funds, index funds, and annuities for better growth and security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in