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Ramalingam

Ramalingam Kalirajan  |7100 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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Mutual Funds, Financial Planning Expert - Answered on Jun 01, 2024

Asked by Anonymous - Jun 01, 2024Hindi
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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

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Anu

Anu Krishna  |1321 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 22, 2024

Asked by Anonymous - Jul 28, 2024Hindi
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Relationship
Hi sir, I am 40 yr old having work-expereince of 10 yrs behind me in ITes, customer support & service, banking and sales & marketing (product). My life till now can easily be converted into a bollywood biopic having its own twist & turns, roadblocks, struggles laughter, joy and sorrow. Change is the only constant in life and that exactly applies in my case. Although it has been a satisfactorily life till now given that I know myself and how I lead my life. Whenever I start to read something new I feel like going deep into it. I am also easily attracted to novel things & concepts. I usually get into procastination mode whenever I come across something entirely new and start to imagine myself trying it out in realilty.Why does this happens? Why can't I focus on one single thing at a time and see it to completion? I know in todays world generalists are looked down upon and it is an era of specialists, experts and professionals having good domain knowledge of their area of work. It is always better to be an expert than be a jack of all trades (which seems very filmy nowadays where a hero is expected to do everything on his own). Lately I have developed an avid interest in technology and i keep on reading various articles & books on IT and technology. I am also pursuing an online cyber security course from Great Learning Institute, Bangalore. I want to know am I going in the correct direction in life or is it something else I should do which ensures more satisfaction in life? Lately, I have become bit irriiated as well due to the above reasons as I tend to do multiple things at a time (multitasking). My parents are also fed up of me now. My mother keeps nagging me all day.I dont know how to really deal with her, as she always finds perfection in everything. That becomes too much at times. Does this happens in every household? Should I go out and travel to some place in order to temporarily escape from all this? Kindly suggest me some course of action. Pls answer. Thanks
Ans: Dear Anonymous,
You will be distracted and keep trying new things until you actually figure out what you want for yourself in life.
- How does you life seem like a few years down the line?
- What must you do NOW to actually get to where you want in life?

And to answer these questions, you first need to identify a strong, solid goal in life. Either you work with a mentor or your boss or a friend or an expert who can help you identify your goal and purpose. That might help you stay the course and actually streamline your thoughts, your job and your daily life.
Travel used for learning is great but using it to escape only worsens things...So, work on Goal-Setting!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1321 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 22, 2024

Asked by Anonymous - Nov 16, 2024Hindi
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Hi , I am a professor mech engineer , after death of my wife and due to having 5 year girl baby I planned for 2 nd marriage as I live alone away from home town because my of job with my little baby . I accepted a widow having 2 child ,she was working in a govt job 250 km away , after ensuring and agreeing her possibility of transfer and job vacancy @govt office near my house and ensuring she agreed that she will come to live with me along with her 2 kids and my little baby as her trasfer was due in comming few months . We lived apart during her job at 250 km away.,while meeting on weekly offs 6 /7 time in 6 months , then she take 360 degree u turn and said she will not get job transfer to my place and get her trasfer in other dept. in same previous office. And started telling many reasons like she will loose her children's inheritance in her in-laws property ,she will loose promotion , kids Don't want trasfer , and said we will live apart forever . This was contradictory to earlier agreed things .and my my purpose to live in family with my baby not fulfilled , so after long ruckus ,I mutually got divorce from her , Then After divorce I decided to marry non working women having no child and don't expect child as I am @48 year old and tired of living alone and managing job ,girl , house chores . I married to a divorcee girl from Pune ,she was BA first year college drop out girl of 44 yr age after 6 months of long dating on week ends . During 6 months I tried to know her indepth but was don't used to talk much as I was trying to know her true nature, we visited many places ,movies . She seemed perfect as per my requirement of girl wanting no child , and she is house wife . after marriage she behave well for 1 st week ,then she started trouble to hate my baby ( became kaikai )on pety things , she want my baby to house chores at the cost of her important year of 10th std study . She don't liked me taking tution of girl , she didn't like if I help my girl any way . She don't like if I spent some money on my girl . She used to fight all night and don't let me sleep . Now she stated demanding that she want baby , though I was against and b4 marriage agreed to not have any more child due to old age ,cost ,and no personal time for self , then I agreed to have child but b4 that I got her and my fertility tested ,she had weak eggs and syst on her reproductive organs and doc warned to not go for pregnancy due to risk and probability of unhealthy baby birth , but she kept repeating That she want child we consulted 4 Drs. She used to fight and go to her mother's home for 2/4 months after living with me for 2/3 days only . Now she wants divorce , and asks me to keep my girl in hostel if I want her in my life . This Ramayan has left me baffled , What should I do ??? .....
Ans: Dear Anonymous,
The reason to marry for you mainly has been companionship, a mother for your daughter...
And marriage is not a transaction BUT a meeting of minds...when there is no compatibility, there is no space for agreeing on the same things or wanting to make things work which is possibly what has happened with your 2nd and 3rd marriage.
If you want this marriage to work, there has to be an equal commitment by both of you, so, start by emotionally bonding first. Slowly build on this by making goals for the marriage and the future...your only goal can't be mother for your child...not all women are going to readily accept this and some may even falter along the way. Allow the lady and your daughter to bond together for sometime so they develop a unique relationship...
Understand that transactional relationships do not last; so, invest enough time in building trust in that companionship for it to become something meaningful

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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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