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Ramalingam

Ramalingam Kalirajan  |9309 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 04, 2024Hindi
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Can i make 20lakh after 10years if i start with a sip of 1000per month nd increase the amount by 1000 per year.

Ans: To achieve a target of 20 lakhs in 10 years with an initial SIP of 1000 per month increasing by 1000 per year, you need to consider the following factors:

Rate of Return: The expected rate of return on your investments will significantly impact the final corpus. Assuming an average annual return of around 12%, which is a reasonable estimate for equity mutual funds over the long term, you can calculate the potential growth of your investments.
Contribution: Calculate the total contribution over the 10-year period considering the increasing SIP amount each year.
Compounding Effect: The power of compounding plays a crucial role in growing your investments. As your SIP amount increases annually, the compounding effect magnifies, leading to higher returns over time.
Investment Horizon: Ensure you remain invested for the entire 10-year period to maximize the growth potential of your investments.
While it's challenging to provide an exact answer without specific calculations, given the assumptions mentioned above, it's plausible to achieve a corpus of 20 lakhs in 10 years with disciplined investing and the power of compounding. However, it's essential to periodically review your investment strategy and adjust your SIP contributions as needed to stay on track towards your financial goals.
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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Moneywize

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Financial Planner - Answered on Feb 09, 2024

Asked by Anonymous - Feb 08, 2024Hindi
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Can a SIP of Rs 2,000 per month for 20 years help me earn Rs 40 lakh? I would also be interested in doing a top-up SIP of Rs 1,000 after end of every year, and may be Rs 2,000 SIP top-up after three years. What kind of returns can I expect from this endeavor?
Ans: Whether a SIP of Rs 2,000 per month for 20 years with top-ups can help you earn Rs 40 lakh depends on the rate of return you achieve. Here's a breakdown:
Investment plan:
• Monthly SIP: Rs 2,000
• Investment period: 20 years (240 months)

Top-up SIP:
• Rs 1,000 annually
• Rs 2,000 after 3 years (one-time)

Possible returns:

It's impossible to predict future returns with certainty, but here's an estimate based on historical averages:

• Equity mutual funds: Historically, equity mutual funds in India have delivered average annual returns of around 12-15%. With this rate, you could reach Rs 40 lakh in approximately 15-17 years.
• Debt mutual funds: Debt funds offer lower returns but are less volatile. They typically yield 6-8% annually. At this rate, reaching Rs 40 lakh would take much longer, possibly exceeding 20 years.

Reaching Rs 40 lakh:

Based on the above, a return of at least 8% would be necessary to reach Rs 40 lakh within 20 years with your investment plan. Remember, this is just an estimate, and actual returns may vary significantly.

Using a SIP calculator:

For a more precise estimate, consider using a SIP calculator that factors in your investment details and desired return rate. Many online platforms offer such calculators.

Important factors to remember:

• Past performance is not indicative of future results. Mutual fund returns can fluctuate significantly depending on market conditions.
• Consider your risk tolerance. Equity funds offer higher potential returns but also carry greater risk. Choose a fund that aligns with your risk appetite.
• Seek professional advice. Consulting a financial advisor can help you create a personalised investment plan based on your goals and risk profile.

..Read more

Ramalingam

Ramalingam Kalirajan  |9309 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 22, 2024

Asked by Anonymous - Jun 15, 2024Hindi
Money
Is it possible to make 1cr in 10 years with a monthly sip of 10000
Ans: Investing wisely and systematically over time can be a powerful strategy to achieve significant financial goals. One common aspiration among investors is to accumulate a corpus of Rs 1 crore in 10 years. While the idea of reaching this milestone through a monthly SIP (Systematic Investment Plan) of Rs 10,000 is appealing, it's important to assess this goal critically and understand the various factors involved.

Evaluating the Target
Accumulating Rs 1 crore in 10 years with a monthly SIP of Rs 10,000 might seem straightforward. However, simple calculations reveal that this target is quite ambitious without a proper strategy.

Considering a static SIP of Rs 10,000 per month, the total investment over 10 years would be Rs 12,00,000. To reach Rs 1 crore, the investment would need to grow at a compounded annual growth rate (CAGR) of around 26-27%, which is exceptionally high and unrealistic for most investment avenues.

The Power of Step-Up SIP
A more achievable strategy is to utilize a step-up SIP approach. A step-up SIP involves increasing your SIP amount periodically, typically annually. This method leverages the power of compounding and the potential increase in your income over time.

For example, if you start with an SIP of Rs 10,000 and increase it by 10% each year, your investment amount grows gradually, and the cumulative effect can significantly enhance your returns. This approach is more realistic and aligns with expected returns from equity mutual funds, which generally average around 12-15% CAGR over the long term.

Understanding Mutual Funds
Actively Managed Funds
Actively managed funds, where fund managers actively select stocks to beat the market, offer potential for higher returns. They are particularly beneficial in a dynamic market where professional expertise can capitalize on opportunities and mitigate risks.

Actively managed funds come with the benefit of professional oversight. Fund managers continuously monitor and adjust the portfolio, aiming to outperform the market. This can be advantageous, especially in volatile market conditions.

Avoiding Direct Funds
Investing directly in funds might seem cost-effective due to lower expense ratios, but it lacks professional guidance. A Certified Financial Planner (CFP) can offer personalized advice, helping you navigate market complexities and make informed decisions. Regular funds through a Mutual Fund Distributor (MFD) with CFP credentials can provide better value through expert management and tailored advice.

Disadvantages of Index Funds
While index funds are popular for their low costs and simplicity, they mirror the market and do not aim to outperform it. This means in a market downturn, index funds will also decline in value without any active measures to mitigate losses. Actively managed funds, on the other hand, strive to outperform the benchmark and can potentially offer better risk-adjusted returns.

Investment Discipline and Patience
Building wealth through SIPs requires discipline and patience. Market fluctuations can be unsettling, but staying invested for the long term is crucial. Historical data shows that equity markets tend to perform well over extended periods despite short-term volatility.

Diversification and Risk Management
Diversification is key to managing risk. Investing across different asset classes like equity, debt, and gold can provide a balanced portfolio. Equity funds offer growth potential, while debt funds provide stability, and gold acts as a hedge against inflation.

The Role of Insurance
Insurance is crucial for financial security. However, mixing insurance with investment, as seen in ULIPs (Unit Linked Insurance Plans) or traditional investment cum insurance policies, often leads to suboptimal returns. If you currently hold such policies, it may be wise to consider surrendering them and reinvesting the proceeds into more efficient mutual funds. This way, you can separate your insurance needs from your investment goals, optimizing both.

Assessing Returns and Inflation
When planning your SIP strategy, consider realistic return expectations and inflation. Aiming for a 12-15% CAGR from equity mutual funds is reasonable. Inflation erodes purchasing power, so your investment returns should ideally outpace inflation to achieve real growth.

Leveraging Tax Benefits
Mutual funds offer tax benefits under Section 80C and tax-efficient returns under long-term capital gains (LTCG). Equity Linked Savings Schemes (ELSS) can provide tax deductions and have a mandatory lock-in period, encouraging long-term investment.

Monitoring and Reviewing Your Portfolio
Regularly reviewing your investment portfolio with your CFP ensures alignment with your financial goals and risk tolerance. Market conditions change, and periodic adjustments can optimize your portfolio's performance.

Understanding Market Cycles
Equity markets are cyclical, experiencing phases of growth and correction. Understanding market cycles can help set realistic expectations and avoid panic during downturns. Staying invested through market cycles often leads to better long-term returns.

Importance of Starting Early
The earlier you start investing, the more you benefit from compounding. Time in the market is more critical than timing the market. Even small, consistent investments can grow significantly over time.

The Emotional Aspect of Investing
Investing can be emotional. Market volatility might tempt you to make impulsive decisions. A well-defined investment plan and guidance from your CFP can help you stay focused on your long-term goals.

Utilizing Financial Tools and Resources
Leverage financial tools and resources to track your investments, analyze performance, and plan future contributions. Many platforms offer SIP calculators and portfolio trackers that can simplify managing your investments.

Adapting to Life Changes
Your financial goals and capacity to invest might change due to life events like marriage, childbirth, or career shifts. Adapting your SIP contributions accordingly ensures your investment strategy remains aligned with your evolving needs.

Final Insights
Achieving Rs 1 crore in 10 years with a monthly SIP of Rs 10,000 is a challenging target with a static investment approach. However, a step-up SIP strategy, combined with the expertise of a CFP, can significantly enhance your chances. Diversification, disciplined investing, and understanding market dynamics are crucial. Separating insurance from investment, leveraging tax benefits, and regularly reviewing your portfolio are essential practices.

Remember, the journey to wealth creation is a marathon, not a sprint. Patience, discipline, and professional guidance will steer you towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

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Career Counsellor - Answered on Jul 03, 2025

Nayagam P

Nayagam P P  |7711 Answers  |Ask -

Career Counsellor - Answered on Jul 03, 2025

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Hi can you please advice if ISE or Computer Science & Business systems branch is better in NITTE meenakshi college bangalore. Any idea about Faculty for these 2 CS allied branches? How about placement opportunities for ISE & CSBS . Will these CS specialised curriculum at par with CSE Branch? will industry accept CSBS for Software developer roles?
Ans: Narayana, NITTE Meenakshi Institute of Technology offers both Information Science and Engineering (ISE) and Computer Science and Business Systems (CSBS) programs with distinct advantages. ISE, established in 2001, provides a comprehensive software-focused curriculum with NBA Tier-1 accreditation and extensive research opportunities in AI, machine learning, and cybersecurity. The department features experienced faculty including Dr. Mohan SG as Head, with strong industry connections through companies like Unisys and McAfee. CSBS, a newer program developed in collaboration with TCS, combines computer science fundamentals with business systems knowledge, preparing students for NextGen business engineering roles. The curriculum is industry-tailored by TCS experts who conduct periodic sessions on emerging technologies, with faculty trained through TCS's "Train the Trainer" program.

Five Critical Institutional Aspects:

1. Accreditation & Rankings: NMIT holds NBA Tier-1 accreditation for ISE (valid until 2026-27), NAAC A+ grade, and ranks 101-150 in NIRF 2024.

2. Infrastructure: The 23-acre campus features state-of-the-art laboratories, exclusive research facilities, AR/VR/MR labs, IoT centers, departmental libraries, and 11 Centers of Excellence including quantum computing and cybersecurity.

3. Faculty Quality: ISE department has highly qualified faculty with extensive research experience and industry collaboration, while CSBS faculty are TCS-trained with periodic expert visits.

4. Industry Collaboration: Strong partnerships with TCS for CSBS, Unisys, Dell, Amazon, and Microsoft for placements and internships.

5. Placement Performance: 2024 statistics show ISE achieving 88.37% placement rate with average package Rs 7.2 LPA, while overall institutional placement rate reached 94.3% with highest package Rs 47 LPA.

Pros and Cons Comparison:

CSBS Advantages: Direct TCS collaboration ensures industry relevance, business-oriented curriculum bridges technology-business gap, emerging field with high demand, specialized training in analytics and machine learning, strong placement prospects in consulting roles.

ISE Advantages: Established department with proven track record, extensive research opportunities, broader technical scope, higher current placement rates, NBA accreditation, diverse career paths in software development and cybersecurity.

CSBS Disadvantages: Newer program with limited track record, fewer research opportunities compared to ISE, curriculum heavily dependent on TCS partnership, limited higher education options specifically in CSBS.

ISE Disadvantages: More traditional approach, potentially less business-oriented curriculum, higher competition due to established nature, may require additional business skills development for consulting roles.

Industry acceptance for software developer roles is strong for both branches. Companies recruiting CSE students typically allow ISE students to participate in the same placement drives, with minimal differentiation in software development positions. CSBS graduates are specifically designed for business engineering roles and are increasingly accepted by major IT companies including Amazon, Deloitte, Microsoft, and TCS for software development, business analyst, and data scientist positions.

Recommendation: Choose CSBS if you're interested in combining technical skills with business acumen and prefer industry-tailored curriculum with direct corporate mentorship. Select ISE if you prioritize established academic reputation, extensive research opportunities, and broader technical foundation with proven placement success. Both programs offer excellent software developer career prospects, with CSBS providing additional business system expertise and ISE offering deeper technical specialization. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

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Dating Coach - Answered on Jul 03, 2025

Asked by Anonymous - Jul 01, 2025Hindi
Relationship
Mam, I am in relationship with one girl since 2.5 year and my girlfriend told about our relationship to her mom. Every positive point of mine which told by my girlfriend to her mom but every point taken negetivly and denied to her.. Move on from relationship... Leave this relationship. He is not good boy.. The problem of her mother is the caste as well as I am Divorcee person and she is unmarried. We love to each other and want to marry. Due to her mother oppose, she is nervousness totally or told that she has no any idea what to do... How to do.. She is not sure she is convince to her family or not. She told that I don't know how much time she can servive to convince her family. Totally her mind felt like empty, dumb, nervousness. Her father not know about our relationship. When this type moment occurs she behave that sometime it is agree to make efforts for convince and sometime when she is nervousness that time she told that i can not convince and to do the breakup because she is not want to go against the her mom and family. But she told that also she want to marry with me. What should I do?
Ans: I am going with the assumption you both are adults who are thinking individuals. I am also assuming you are both financially independent.

Families, parents are important and it should be so. I understand parents apprehension, having said this, I do not get it why caste and relationship status as previously married takes precedence over compatibility. One should also realise that every relationship needs working upon by 2 people- there is no certainty if someone gets married within their caste or choice of parents/ family.

Coming to your issue there are 2 options

- she is open to take the step upsetting her parents and getting married to you

or

- she and you need to move on and move on in the true sense. which means no connection whatsoever, move out of each other's social media, block contact details and move on, heal yourself and find someone else.

in case you wish to connect you may schedule an interaction with me here https://andwemet.com/relationship-guidance

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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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