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Ramalingam

Ramalingam Kalirajan  |8068 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Md Question by Md on Dec 12, 2023Hindi
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Hi I'm Azharuddin 32 years old.. I want to make a corpus of 1 crore in around 20 years. Please suggest me how and what monthly investments should I make. (I already have HDFC life -30k, HDFC sanchay-50k, TataAIA-40k, Aditya Birla life -40k all annually)

Ans: to achieve your goal of accumulating 1 crore in 20 years, you can consider investing in a combination of equity mutual funds and other investment instruments. Based on your current investments, you can allocate a portion of your monthly income to SIPs (Systematic Investment Plans) in diversified equity funds, aiming for long-term growth. Additionally, you may explore investing in PPF (Public Provident Fund), NPS (National Pension Scheme), or other tax-saving instruments to diversify your portfolio and benefit from tax advantages. Regularly review your investments and adjust your strategy as needed to stay on track towards your financial goal.
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  |8068 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

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I need to create corpus of 5 crores in 10 years. im currently investigating of 46500 past one year. i have following mutual fund in my portfolio Hdfc sensex index 20k pgim midcap 3k motilal midcap index 3k sbi next 50 index 1k motilal micro index 46 icici prudential technology 1k quant small cap 7k parakpari flexi cap 5k axis small 2k. im private employee and earning of 140000 per month. so please provide suitable answer which created 5cr in 10 years also i have lic of 50k per year,ppf of 50k per year and nps 5k every month. my current age is 34
Ans: Creating a corpus of 5 crores in 10 years is an ambitious goal, but with careful planning and strategic investments, it's achievable. Your current investment portfolio and savings habits provide a solid foundation for reaching this milestone.

Given your age of 34 and the 10-year time horizon, we'll need to focus on a growth-oriented investment strategy while ensuring diversification and risk management.

Let's start by optimizing your mutual fund portfolio. While you have a diversified mix of funds, we may need to make some adjustments to align with your goal. Consider increasing allocations to high-growth potential funds like mid-cap and small-cap funds, which historically have outperformed broader market indices.

Regularly review your portfolio to monitor performance and make necessary adjustments based on market conditions and your evolving financial goals.

Additionally, continue your disciplined approach towards savings. Your LIC, PPF, and NPS contributions provide stability and long-term growth opportunities. Ensure you maximize contributions to these instruments within permissible limits to harness their full potential for wealth accumulation.

Remember to stay patient and committed to your financial plan. Building a significant corpus requires time and consistency. As a Certified Financial Planner, I'm here to guide you every step of the way and help you navigate through market fluctuations and uncertainties.

With determination and strategic financial planning, you can achieve your goal of creating a 5 crore corpus in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8068 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

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Respectedsir???? .I am retired person.aged 63 yrs and having 10 lac rs at hand to invest, kindly advice to make corpus of 1 cr . Thanks . ------ K R shriwas
Ans: Dear Mr. Shriwas,

Congratulations on your retirement! It's commendable that you're proactively seeking ways to grow your wealth even after retirement. Let's explore the best investment options to help you achieve your goal of building a corpus of 1 crore.

Your commitment to securing your financial future, even after retirement, is truly inspiring and reflects your proactive approach towards wealth management.

Analyzing Investment Options
Assessing Your Situation:
Current Capital:

With 10 lakh rupees at hand, you have a solid foundation to start building your retirement corpus.
Goal:

Your objective of accumulating 1 crore rupees is ambitious but achievable with the right investment strategy and time horizon.
Investment Recommendations
Diversified Investment Approach:
Equity Mutual Funds:

Consider investing a portion of your capital in equity mutual funds to harness the potential for long-term growth. However, given your age, opt for large-cap or balanced funds to minimize risk.
Debt Instruments:

Allocate a significant portion of your investment to debt instruments such as fixed deposits, bonds, or debt mutual funds. These provide stability and regular income.
Systematic Investment Plan (SIP):

Opt for SIPs in mutual funds to benefit from rupee-cost averaging and disciplined investing. This approach reduces the impact of market volatility over time.
Risk Management Strategies:
Diversification:

Spread your investments across multiple asset classes to mitigate risk. A balanced mix of equity and debt instruments can provide stability while aiming for growth.
Regular Review:

Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Rebalance your portfolio if necessary to maintain optimal asset allocation.
Conclusion
With a well-thought-out investment strategy and disciplined approach, you can work towards achieving your goal of building a corpus of 1 crore rupees for your retirement. Remember to consult with a Certified Financial Planner to tailor an investment plan that suits your unique financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8068 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2024

Asked by Anonymous - Jul 25, 2024Hindi
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Hi sir, I'm 29 with a salary of 1.08 lpm. I don't have any savings. Approx expenses per month is 35-40k. I want to start investing 12.5k in ppf every month and mutual funds/ RD. I want to build a corpus of 2 crore in next 10-15 years. How do I achieve this?
Ans: Your monthly salary is Rs. 1.08 lakhs. Your expenses are Rs. 35-40k. This leaves you with a savings potential of Rs. 68-73k per month. You aim to invest Rs. 12.5k in PPF monthly.

Appreciating Your Initiative
It's commendable that you want to start investing. Your goal of building a Rs. 2 crore corpus in 10-15 years is achievable with disciplined investing.

Investing in PPF
The PPF is a safe investment option with tax benefits. However, it has a lock-in period of 15 years. The interest rate is around 7-8%. Investing Rs. 12.5k monthly will help you accumulate a substantial amount.

Exploring Mutual Funds
Benefits of Actively Managed Funds

Actively managed funds have professional fund managers.
They can outperform index funds, especially in volatile markets.
They provide better returns through strategic investments.
Disadvantages of Direct Funds

Direct funds lack the guidance of a Certified Financial Planner (CFP).
Regular funds, through MFD with CFP credentials, offer expert advice.
Recommended Investment Strategy
Balanced Portfolio

Diversify between equity and debt.
Allocate funds in large-cap, mid-cap, and small-cap funds.
Consider a mix of mutual funds and PPF.
Systematic Investment Plan (SIP)

Invest monthly through SIP in mutual funds.
Start with an amount you’re comfortable with.
Gradually increase your SIP amount with time.
Calculating Your Investment Needs
To achieve Rs. 2 crores in 10-15 years, you need a structured plan. Assuming a 12% return on mutual funds:

10 Years: You need to invest around Rs. 60-65k monthly.
15 Years: You need to invest around Rs. 30-35k monthly.
Suggested Allocation
Monthly Allocation:

PPF: Rs. 12.5k
Mutual Funds: Rs. 30-60k (depending on the investment horizon)
Emergency Fund

Keep 3-6 months’ expenses as an emergency fund.
This ensures financial stability during unforeseen events.
Reviewing and Adjusting
Review your investments annually.
Adjust your portfolio based on market conditions.
Consult with a Certified Financial Planner (CFP) regularly.
Final Insights
Your goal of Rs. 2 crores in 10-15 years is attainable. A balanced investment strategy, combining PPF and mutual funds, will help you reach your target. Regular reviews and disciplined investing are key to your financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Niharikka

Niharikka Budhwani  |13 Answers  |Ask -

Dietician, Lifestyle, Nutrition Expert - Answered on Mar 03, 2025

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my age is 50 & weight is 75 KGs. Height is 5 feet 4 inch. i am not taking any type of medicine. i walk daily 10000 steps but not in one go. please suggest me to reduce weight.....
Ans: Hey Amar,

To lose weight, you need to create a calorie defict. Which means you need to eat less than what your body burns. Sounds technical but if you just follow your body's hunger-satiation signals it should be good. There are a couple of ways you can manage to feel full
1. Have a glass of water 15-20 min before your meals. This will help you understand exactly how hungry you are when you sit to eat your main meals.
2. Have a balanced meal. Have 2 servings of vegetables (salads/sabzi), 1 serving of protein and 1 serving of carbohydrates (roti/rice). This will ensure you don't over eat and exceed your caloric requirements
3. Remove 30 minutes for exercise at least 5-6 days a week. We cannot eat very less calories since that can compromise our nutrient intake and create deficiencies in long run. And exercise is the simplest form to create calorie deficit to compliment your fat loss journey.
4. Try to sleep before 12am. Sleep plays a very vital role in your fat loss journey. Research states that inadequate sleep leads to fat gain and also, excess caloric intake. So clock in 7-9 hours of good quality sleep.
5. If you routine is stressful then ensure to practise deep breathing exercise, or yoga or meditation to manage stress. Cortisol (stress hormone) is responsible for fat deposition around the belly. So manage your stress levels and prioritise mental health.

Losing weight is simple, all it requires is discipline and consistency. And the journey doesn't end when you achieve that number on your weighing scale. I always give an example of income. For income, you need a job, if you lose the job you lose your income. The same way if you want to sustain weight, you need to keep the diet and lifestyle healthy forever. So, keep the diet sustainable. :)

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Ramalingam

Ramalingam Kalirajan  |8068 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 03, 2025

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Hello Sir i am planning to go with SBI Magnum Children's Benefit Fund- Investment Plan- Direct Plan - Growth. and pls suggest can i go with lumsum of 300000. Can you please suggest is this is good
Ans: Investing in a children's benefit fund can be a good decision. But you need to assess if it fits your goals.

Your chosen scheme is a hybrid mutual fund. It invests in both equity and debt. This type of fund offers balanced growth and stability.

Let’s evaluate its suitability from different angles.

Understanding Hybrid Mutual Funds for Children's Investment
Hybrid funds invest in a mix of equity and debt.

The equity portion helps in long-term growth.

The debt portion offers stability in market downturns.

This balance makes them less volatile than pure equity funds.

However, hybrid funds may not give the highest returns over the long term.

Factors to Consider Before Investing
1. Investment Goal and Time Horizon
This fund is designed for child-related goals.

If your goal is long-term (10+ years), equity funds may offer better returns.

If your goal is short-term (3-5 years), hybrid funds may be better.

A mix of equity and debt funds may offer more flexibility.

2. Risk-Return Profile
Hybrid funds have lower risk than equity funds.

However, they also deliver lower returns.

If you are comfortable with volatility, equity mutual funds may be better.

If you want moderate growth with less risk, hybrid funds can be considered.

3. Tax Efficiency
Equity-oriented hybrid funds have the same tax rules as equity funds.

Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20%.

Debt-oriented hybrid funds are taxed as per your income tax slab.

If tax efficiency is a concern, consider equity mutual funds for long-term goals.

Evaluating Lumpsum Investment of Rs 3 Lakh
1. Market Timing Risk
A lumpsum investment carries timing risk.

If the market is at a peak, your returns may be lower.

If the market falls, your portfolio will take a hit.

Instead, you can use a Systematic Transfer Plan (STP).

This allows you to invest gradually, reducing market risk.

2. Alternative: Systematic Investment Plan (SIP)
A SIP spreads your investment over time.

This reduces the impact of market fluctuations.

If you want lower risk, consider investing in smaller amounts over time.

3. Liquidity and Accessibility
Mutual funds offer liquidity.

However, some children's investment plans have lock-in periods.

Check the exit load before investing.

Ensure the fund allows withdrawals when needed.

Comparing with Actively Managed Equity Funds
Actively managed equity funds can offer better long-term returns.

These funds are handled by professional fund managers.

They adjust the portfolio based on market conditions.

Over long periods, actively managed funds can outperform hybrid funds.

If your child’s goal is more than 10 years away, consider equity funds.

Regular Funds vs. Direct Funds
1. Disadvantages of Direct Plans
Direct plans do not provide guidance from experts.

You need to track and manage your portfolio yourself.

Without professional advice, you may make emotional investment decisions.

Market movements may tempt you to exit at the wrong time.

2. Benefits of Regular Plans with a CFP
A Certified Financial Planner (CFP) helps you align investments with goals.

They guide you in rebalancing and tax planning.

They can help you avoid common investment mistakes.

A CFP can recommend better alternatives if needed.

Alternative Investment Options
1. Flexi Cap and Large Cap Funds
These funds provide long-term capital appreciation.

Large-cap funds invest in stable, well-established companies.

Flexi-cap funds allow fund managers to invest across market caps.

These funds may offer better returns for long-term goals.

2. Small Cap and Mid Cap Funds
Small-cap and mid-cap funds can deliver high growth.

They are riskier but perform well over long periods.

If your risk tolerance is high, you may allocate some funds to these.

3. Debt Funds for Short-Term Goals
If your goal is in 3-5 years, consider debt funds.

They offer stability and predictable returns.

Debt funds have lower tax efficiency but are safer.

Final Insights
Hybrid funds offer balanced risk and return.

They are suitable for medium-term goals (5-8 years).

For long-term goals, equity funds may provide better returns.

Investing Rs 3 lakh in one go carries market timing risk.

Consider SIP or STP to reduce this risk.

Work with a CFP to optimise your investment plan.

Review your portfolio regularly and rebalance if needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Nayagam P

Nayagam P P  |4255 Answers  |Ask -

Career Counsellor - Answered on Mar 03, 2025

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Career
Sir I get 77.88%ile in 1st attempt, Gen-EWS candidate. As a student I'll definitely try to increase my score but would you clarify me what I get on the basis of this score any good GFTI . I have no chance to go south states and west Bengal, My parents only allow me to states in north like delhi, Up please guide me sir
Ans: You can take part in the JAC-Delhi Counselling Process, Saiyam. If your parents can afford it or if you get a scholarship, write 4-5 more entrance tests as backups. This will give you a Plan B and Plan C. If you want to know if you are eligible for GFTI, please read the answer I have been giving to people who have asked the same question based on their percentile score in the January session of JEE-Main.

How to Predict Your Chances of Admission into NIT-Warrangal or any other NITs or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide for you.

Once the January JEE Main session results are declared, many students and JEE applicants start asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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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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