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Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2023

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
deven Question by deven on May 17, 2023Hindi
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Dear sir i m start to SIP Rs 2000 for 15 to 20 Year Approx. return 14% To 20% Which mutual fund is best for SIP ?

Ans: I suggest you to have an expectation of 10% to 12% to be more realistic.
You can choose actively managed diversified equity funds.
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  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

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Sir Please suggest best Mutual fund as i want to Do SIP for long term.
Ans: While I can't provide specific fund names, I can offer some general guidance:

Consider investing in diversified equity mutual funds for long-term wealth creation. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, offering growth potential while spreading out risk.
Look for funds with a proven track record of consistent performance over several market cycles. Past performance is not indicative of future results, but it can provide insights into a fund's management strategy and risk management practices.
Pay attention to factors like fund manager experience, expense ratio, and portfolio turnover. A seasoned fund manager with a solid investment approach can navigate market volatility more effectively.
Evaluate the fund's investment philosophy and strategy to ensure it aligns with your risk tolerance and investment goals. Some funds may focus on growth-oriented stocks, while others may prioritize value or dividend-paying stocks.
Consider your investment horizon and risk appetite. If you have a long-term investment horizon (e.g., 5 years or more) and are comfortable with market fluctuations, you may opt for equity-oriented funds. For shorter investment horizons or lower risk tolerance, consider balanced funds or debt funds.
Lastly, seek professional advice from a Certified Financial Planner (CFP) or a trusted financial advisor. They can assess your financial situation, risk profile, and investment goals to recommend suitable mutual funds that align with your needs.
Remember, investing in mutual funds involves risk, and it's essential to conduct thorough research and seek professional advice before making any investment decisions.

..Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

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

Asked by Anonymous - Jun 01, 2024Hindi
Money
Hello sir I'm 28 rights now and I want to invest 50K in Mutual Fund & 2000 SIP, Please Suggest Which fund Best for MF and SIP.
Ans: It's fantastic that you're thinking about investing at 28. Starting early gives your money more time to grow through compounding, which is like earning interest on your interest.

Since there's no one-size-fits-all answer in investing, let's discuss some factors to consider to pick the right mutual funds (MFs) and SIP for you:

1. Investment Goals:

What are you saving for? A down payment on a house, retirement, a dream vacation? Different goals have different time horizons, which affect your investment choices.
2. Risk Tolerance:

How comfortable are you with market ups and downs? Some MFs invest in stocks that can be more volatile, while others focus on bonds that are typically steadier.
3. Investment Timeframe:

When will you need the money? Long-term goals (10+ years) allow for taking on more risk to potentially achieve higher returns.

Investing in mutual funds can be a powerful tool for financial growth. Your goal is to invest Rs. 50,000 in a mutual fund and Rs. 2,000 monthly through a Systematic Investment Plan (SIP). Let’s explore the best strategies for you.

The Importance of Diversification

Diversification reduces risk by spreading your investments across various assets. Mutual funds offer diversification, allowing you to invest in a mix of stocks, bonds, and other securities. This balanced approach can help achieve your financial goals.

Choosing the Right Mutual Fund

When selecting a mutual fund, consider factors like your risk tolerance, investment horizon, and financial goals. Equity funds, debt funds, and hybrid funds offer different benefits. Equity funds have higher risk and return potential, debt funds offer stability, and hybrid funds provide a balanced approach.

Equity Funds for Long-Term Growth

Equity funds invest in stocks and are ideal for long-term growth. They can generate high returns over time but come with higher risk. If you are comfortable with market fluctuations, equity funds can be a good choice.

Debt Funds for Stability

Debt funds invest in fixed-income securities like bonds. They provide stable returns with lower risk compared to equity funds. Debt funds are suitable if you prefer a conservative approach and want steady income.

Hybrid Funds for Balance

Hybrid funds invest in a mix of equity and debt. They offer a balanced approach, reducing risk while providing growth potential. Hybrid funds are suitable if you seek moderate risk and balanced returns.

Systematic Investment Plan (SIP)

SIP allows you to invest a fixed amount regularly, promoting disciplined saving. Investing Rs. 2,000 monthly through SIP can help you build wealth over time. It mitigates market volatility through rupee cost averaging.

Benefits of SIP

SIP offers several benefits, including disciplined investing, convenience, and flexibility. It helps in building a habit of regular saving and investing. SIP also benefits from the power of compounding, enhancing long-term returns.

Evaluating Fund Performance

When choosing funds, evaluate their past performance, expense ratio, and fund manager’s expertise. Consistent performance over time indicates reliability. A lower expense ratio ensures more of your money is invested rather than spent on fees.

Role of Fund Manager

A skilled fund manager can significantly impact the fund’s performance. Look for funds managed by experienced professionals with a good track record. Their expertise can help in making informed investment decisions.

Understanding Expense Ratio

Expense ratio reflects the cost of managing the fund. A lower expense ratio means higher returns for you. Compare the expense ratios of different funds to make cost-effective choices.

Risk Assessment

Understanding your risk tolerance is crucial. Assess how comfortable you are with potential losses. High-risk funds can offer higher returns, but consider your financial stability and long-term goals.

Investment Horizon

Your investment horizon impacts fund selection. For long-term goals, equity funds can be suitable. For short-term goals, consider debt or hybrid funds. Align your investments with your time frame.

Importance of Regular Review

Regularly reviewing your investment portfolio ensures it stays aligned with your goals. Monitor fund performance and make adjustments as needed. This proactive approach helps in optimizing returns.

Advantages of Actively Managed Funds

Actively managed funds aim to outperform the market through strategic investments. Fund managers use research and analysis to make informed decisions. They can adapt to market conditions, potentially providing better returns.

Disadvantages of Index Funds

Index funds track a market index and lack active management. They may underperform in volatile markets as they cannot adjust holdings. Actively managed funds offer better growth opportunities through strategic management.

Benefits of Regular Funds

Investing through a Certified Financial Planner (CFP) offers guidance and expertise. Regular funds, managed by professionals, ensure informed decisions. CFPs help in selecting suitable funds, optimizing your investment strategy.

Disadvantages of Direct Funds

Direct funds require investors to make decisions without professional guidance. This can be challenging for those without market knowledge. Regular funds through CFPs provide expert advice, enhancing investment outcomes.

Personalized Investment Strategy

Creating a personalized investment strategy involves understanding your financial situation and goals. A CFP can help tailor a plan that suits your needs. This approach ensures your investments align with your objectives.

Market Trends and Analysis

Staying informed about market trends helps in making better investment decisions. A CFP can provide insights and analysis, guiding you through market changes. This expertise enhances your investment strategy.

The Role of Financial Education

Understanding financial concepts is crucial for making informed decisions. Educate yourself about mutual funds, SIPs, and market dynamics. Knowledge empowers you to take control of your financial future.

Building a Strong Financial Foundation

Investing in mutual funds and SIPs helps in building a strong financial foundation. It promotes disciplined saving, diversification, and long-term growth. A well-structured investment plan supports your financial goals.

Final Thoughts

Investing in mutual funds and SIPs can significantly enhance your financial growth. Choose funds based on your risk tolerance, investment horizon, and financial goals. Regularly review your portfolio and seek guidance from a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
DOB entered in my LIC Jeevan Shri policy is 02/01/1962 whereas my actual DOB is 02/ 01/1960. All premiums are paid and policy is to mature in January 2027. Will there be any issue at the time of maturity? If yes, what should I do?
Ans: Identifying the Core Issue
Your policy photo shows DOB as 02/01/1962.

Your actual DOB is 02/01/1960.

The policy matures in January 2027.

This mismatch may cause confusion at maturity.

LIC may question your age at entry or maturity.

They may delay or adjust payout.

Potential Problems at Maturity
LIC assesses maturity based on policy date and age.

Incorrect DOB may trigger request for proof.

Verification delays are possible.

It may affect payable amount if age criteria differ.

Claim could be deferred pending correction.

A dispute could arise if underwriting terms vary by age.

Why Timely Correction Matters
Corrections during the policy term are simpler.

At maturity, LIC may demand proof and correction.

That may risk your payout timeline and convenience.

Avoiding delays preserves your financial planning.

Legal and Underwriting Perspective
LIC follows IRDAI norms and standard age documentation.

Update must use original proof like birth certificate, school records, or passport.

Age proof must be valid and consistent with actual date.

What You Should Do Now
1. Immediately Inform LIC

Visit the LIC branch office where policy was sold.

Write an application stating correct DOB.

Attach self-attested original documents:

Birth certificate or school leaving certificate.

Passport, PAN card, or Aadhaar.

2. Submit Application with Proofs

Clearly mention policy number and details.

Ask LIC to correct the DOB in records.

LIC will process under “endorsement and correction” procedure.

3. Follow Up Periodically

Keep a copy of acknowledgment receipt.

Visit branch after 15–30 days to check update status.

Ask for corrected policy document or endorsement certificate.

4. Keep Updated Documents

Once corrected, request updated policy

Ensure your maturity benefit is based on correct age data.

5. Minimise Risk of Dispute

Holding correct documentation reduces maturity time friction.

Avoid last-minute discrepancies causing unnecessary stress.

What Happens if You Don’t Correct Now
LIC may seek age proof at maturity.

Processing may get delayed by weeks/months.

Official payout may be reduced if age mismatch affects sums assured.

You may need to undergo extra paperwork or due diligence at maturity.

Post?Correction Actions
Ensure the corrected policy is reflected in your name.

Keep endorsement letter securely.

Include corrected document in financial plan.

Avoid future insurance or investment mismatches.

Integrating this into Your 360° Financial Plan
Insurance & Policy Governance

Age errors are common but fixable.

Timely correction reduces frustration.

Clean records align better with other investments.

Retirement & Liquidity Planning

January 2027 maturity may fund retirement or goals.

Ensure payout timing works with your plan.

Tax Considerations

Money received will be assessed as per maturity rules.

LIC doesn’t deduct tax at maturity.

But correct documentation avoids classification issues.

Final Insights
Mismatched DOB is fixable without surrender.

Fix it now by submitting application with proof.

Track status to ensure benefits at maturity are unhindered.

Proper documentation aids smooth maturity payout.

You can align this corrected policy with your overall financial plan.

You are proactive in seeking clarity. This action ensures secure maturity benefit and trust in your planning.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 16, 2025Hindi
Money
I'm 30 years old and have a cloud kitchen where I earn around 40000 a month approximately or sometimes more than this. I'm married and my wife is a working women earns 20k a month , I do investment in sliver by purchasing coins or have gold but need to ask where I can invest more for my kids education and for my retirement I'm capable to invest 15k every month and ready to invest for long term bases.
Ans: You are 30 years old.

You run a cloud kitchen.

Your income is around Rs 40,000 a month.

Your wife earns Rs 20,000 a month.

You invest in silver coins and gold.

You want to invest for kids’ education and your retirement.

You are ready to invest Rs 15,000 every month.

You are focused on long-term investment.

You have taken the right step already. Thinking early about your future goals is wise. Now let's build a full financial plan with your situation in mind.

Start with Emergency Fund

Emergency fund is the first step.

It helps when there is no income.

You should have 6 months’ expenses saved.

Try to keep Rs 2.5 lakhs to Rs 3 lakhs.

Use liquid mutual funds or sweep-in FDs.

This money should not be in gold or silver.

Keep it easy to access, but not in savings.

Secure Health and Life

Health insurance is a must.

Take family floater for yourself and your wife.

Minimum cover of Rs 5 lakhs is advised.

Don’t depend only on employer’s insurance.

Medical expenses can spoil savings if ignored.

Life insurance is needed only if you have dependents.

Pure term insurance is the best.

Avoid money-back or endowment plans.

Premiums are low and coverage is high.

Cover should be 15 to 20 times your yearly income.

Don’t mix insurance and investment.

Silver and Gold: Good but Not Sufficient

You invest in silver and gold now.

These protect against inflation.

But they don’t give regular returns.

They don’t help in long-term wealth growth.

Their prices are also very volatile.

Don’t invest more than 10% in them.

Your focus should be long-term growth now.

Invest in Mutual Funds through Certified Financial Planner

Mutual funds are ideal for long-term goals.

They give inflation-beating returns.

For Rs 15,000 monthly, SIP is the best way.

Systematic Investment Plan gives discipline.

Start SIP in 3 or 4 good funds.

Pick different categories – equity, hybrid.

Mix of large, flexi-cap, and balanced funds.

Choose regular plans through a Certified Financial Planner.

Avoid direct funds, they don’t give guidance.

MFDs with CFP certification can help with reviews.

They help you track and rebalance yearly.

Why Not Direct Funds

Direct funds don’t give personalised advice.

You need to track and switch on your own.

Most people don’t review their investments.

Regular funds give value with expert support.

A Certified Financial Planner will create a proper strategy.

You will stay more disciplined with guidance.

Advice helps avoid panic during market falls.

Avoid Index Funds and ETFs

Index funds only follow the market.

They don’t beat the market.

Returns are average, not high.

They don’t have fund manager’s expertise.

Actively managed funds select better companies.

You need high growth, not average returns.

Index funds are passive, with no risk strategy.

For long-term goals like kids’ education or retirement, avoid them.

Investment Allocation – Based on Your Goals

For Kids’ Education:

Start SIP of Rs 7,000 monthly.

Invest in child-focused equity mutual funds.

Add hybrid funds for safety after 5 years.

Review every year with your planner.

Add lump sum whenever income is high.

For Retirement:

Start SIP of Rs 8,000 monthly.

Choose 2–3 high growth mutual funds.

Use flexi-cap and large & mid-cap funds.

Goal is to build wealth over 25–30 years.

Don’t stop SIP during market falls.

Add a PPF Account

PPF is good for stable long-term returns.

Invest Rs 1,000 to Rs 2,000 monthly.

Safe, tax-free, and government-backed.

Use it as a fallback retirement backup.

Don’t rely only on this for growth.

Use it with mutual funds, not alone.

Track and Rebalance

Once a year, review your investments.

Shift from risky to safe as goals near.

Use Certified Financial Planner to guide.

Rebalancing helps avoid big losses.

Don't do it emotionally. Do it smartly.

Avoid Investment Cum Insurance Products

Don’t buy ULIP or endowment plans.

They give poor returns.

Charges are high. Lock-in is long.

They look safe but give low growth.

You lose flexibility and transparency.

Only pure term insurance is needed.

Discipline and Long-Term Thinking

Don’t stop SIPs during bad months.

Market may fall but it recovers.

Stick to the plan for 10 to 25 years.

Keep increasing SIPs when income rises.

Even Rs 1,000 increase helps long term.

Celebrate milestones with discipline, not breaks.

Avoid Loans for Goals

Avoid loans for kids’ education.

Build funds early. Avoid education loan stress.

For retirement, don’t depend on children.

Build your own wealth. Be self-reliant.

Loans eat returns and peace of mind.

Track Expenses and Budget

Save before you spend.

Don’t wait till month-end to invest.

Budget your expenses weekly.

Keep lifestyle simple till goals are strong.

Avoid unnecessary credit card expenses.

Other Smart Habits to Follow

Write down your goals clearly.

Write target year and amount.

Share goal clarity with your wife too.

Financial teamwork helps a lot.

Talk about money once a month at home.

Teach kids about savings from early age.

Finally

You are on the right track already.

Thinking about future at 30 is wise.

Silver and gold alone are not enough.

Mutual funds will build real wealth.

Take help from a Certified Financial Planner.

Build a solid emergency fund.

Get health and term cover first.

Start SIPs now for kids’ education and retirement.

Don’t stop SIPs when income is low.

Use PPF for safe support, not as main plan.

Stay consistent for 10 to 25 years.

Track, rebalance, and review yearly.

Avoid index funds and direct funds.

Avoid real estate or investment insurance.

Focus on goals. Avoid shortcuts.

Keep increasing investment with income.

Future will be safe, stress-free and independent.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9148 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
I am 37 years and doing sip of 37.5k every month in these fund for retirement goal which is 20 years from now. Apart from this I have 3L in SGB, nps sip of 14k every month and ppf of 10L. Hdfc flexi cap fund - 10k Hdfc Midcap fund - 2.5k Icici large and midcap fund - 10k Icici value discovery fund - 5k Tata small cap fund - 10k
Ans: Reviewing Your Current Investment Setup
You are 37 years old with a 20-year retirement horizon.

Monthly SIP total is Rs?37,500 in equity mutual funds.

You also hold Rs?3?lakh in sovereign gold bonds (SGB).

You invest Rs?14,000/month in NPS.

You have Rs?10?lakh in PPF.

Equity SIP breakdown:

Flexi?cap: Rs?10,000

Mid?cap: Rs?2,500

Large & mid?cap: Rs?10,000

Value discovery: Rs?5,000

Small?cap: Rs?10,000

This shows you are aggressive and committed. Excellent foundation for long-term wealth building.

Setting Clear Financial Goals
Your horizon (20 years) is ideal for equity exposure.

You may have multiple goals: retirement corpus, possibly medical, travel, legacy.

Define corpus target for retirement (e.g., monthly income, inflation).

Map goal timelines (retirement, near-term smaller goals).

Detailed goal clarity helps in allocation and withdrawals.

Assessing Overall Asset Allocation
Your current allocation includes:

Equity mutual funds: aggressive mix across caps.

NPS: equity + government securities exposure.

PPF: long?term debt with tax benefits.

SGB: gold holding.

Equity SIP alone is heavily tilted to small and mid?caps (~60%). Higher growth but higher volatility.
Your NPS and PPF provide debt and tax-efficient retirement coverage.
Gold acts as hedge, though no income.

This is good but can be further refined for diversification and risk control.

Rebalancing Equity Exposure
Small?cap and mid?cap overweight

These categories offer growth but high swings.

Review small?cap SIP through performance and volatility.

Mid?cap is decent, but focus needs to balance large?cap exposure.

Flexi?cap and value discovery funds

Flexi?cap offers flexibility; wisely used for allocation shifts.

Value discovery tends toward contrarian picks; keep modest exposure.

Large?cap or diversified equity

Add long?term large?cap exposure for stability.

You lack pure large?cap SIP. Consider adding one.

Aggressive hybrid or flexi?asset allocation

A blended plan (equity + debt) cushions downside.

With 20-year horizon, you may take slightly lower equity via hybrid.

Proposed Portfolio Refinement
Let us reshape monthly Rs?37,500 SIP:

Maintain small?cap SIP: Rs?5,000

Maintain mid?cap SIP: Rs?2,500

Maintain value discovery SIP: Rs?5,000

Maintain flexi?cap SIP: Rs?10,000

Add large?cap equity SIP: Rs?7,500

Add aggressive hybrid SIP: Rs?7,500

This keeps growth potential while smoothing volatility.
Small?cap exposure reduces from Rs?10k to Rs?5k.
Large?cap addition and hybrid provide balance.

Role of NPS, PPF, SGB in Retirement Planning
NPS (Rs?14k/month)

Provides equity + government securities mix.

Gives forced retirement equity exposure with tax benefit.

Include both Tier I and Tier II as needed.

PPF (Rs?10?lakh)

Good long?term debt asset with guaranteed returns.

Acts as stable base for retirement corpus.

SGB (Rs?3 lakh)

Adds gold hedge and moderate interest (~2.5%).

Good allocation for inflation buffer and equity hedge.

These three form stable core. They complement equity mutual funds.

Additional Asset Class Suggestions
Short?term debt or low?duration funds

Useful to park upcoming lump sum or reserve cash.

Helps during market corrections.

Consider Rs?2,500/month for emergency buffer.

Gold ETF or gold fund (optional)

You have SGB; adding gold ETF increases gold weight.

If gold allocation stays ~5–7%, fine.

Avoid raising gold exposure too much.

International equity funds (optional)

Small exposure (5%) helps global diversification.

Acts as hedge to domestic volatility and currency moves.

Avoiding Index and Direct Plan Pitfalls
Index funds track index blindly; offer no manager to act.

In adversity, index falls without buffer.

Actively managed funds adapt, exit, and rebalance.

Direct plans lack advisory guidance and monitoring.

Regular plans via CFP ensure disciplined reviews and rebalancing.

They help manage emotions and allocation drift.

Prefer regular plans with CFP-backed MFDs for strategic portfolio support.

Managing Taxation Efficiently
Equity funds held beyond 1 year get LTCG tax (12.5% on gains above Rs?1.25 lakh).

Short?term capital gains (

...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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