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Ulhas

Ulhas Joshi  |255 Answers  |Ask -

Mutual Fund Expert - Answered on Jun 14, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Krishna Question by Krishna on Jan 28, 2023Hindi
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Want to make 5 to 8 crores in next 8-10 years. what are the methods we can put in to such as sip , one time investment or any other long term.

Ans: Hello Krishna, thanks for writing to me.

Please provide details like your risk appetite, your investible amount and other details so help devise a plan.
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  |1318 Answers  |Ask -

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

Asked by Anonymous - Feb 20, 2024Hindi
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I m 49yrs, investing in SIP since 2019, started with Rs.10k/month, now Rs.20k/month. This month invested Rs.10lk in 4 equity linked MFs. Expecting Rs.43lks from PPF by 2031. How should I go further to have monthly income of Rs.2lk after 60yrs of age? How can I earn Rs. 80,000 in 12 months by investing just Rs. 4,000? Not possible in my opinion. I will continue to track answers i wish to learn from other experts.. I am 31 years-old & investing INR 110k/ month in various SIPs in India since July 2015. How can I make 10 Crores in 10 years from now? I have invested in PPF and Bank FD, and asset allocation in my SIP portfolio is appropriate as of March 2016. Good job! your thinking process is abolutely perfect. You have a set goal to achieve an end number of Rs10crores. But it will lead to utter failure- I will explain in a moment- And you also have a good savings rate of Rs1.1l per month which adds up to Rs13.2l per year. So assume even if your investments yield 0% returns over the long period it would still amount to Rs1.32crores. Now don’t get upset when I say 0% returns. When you invest in equities, you have the worst scenario in your mind before you venture. Preparing for the worst is preparing to succeed. Now lets look at your preferred mode of If I invest 15000 INR every month in SIPs, how much returns can I expect by the end of 15-20 years? *Answering this question from my perspective* As I am going to invest for a long term, I would choose EQUITY funds. ( No debt or hybrid) Per month I am going to invest Rs 15000. So, it amounts to 1 lakh 80 thousand per year and 36 lakhs for 20 years. In this case, I am assuming an annual returns of 12% as it is equity fund and any good equity fund can give 12% returns. At the end of 15 years, Amount Invested= 27 lakhs Wealth Gain= 48.7 lakhs Expected Total amount= 75.7 lakhs At the end of 20 years, Amount Invested= 36 lakhs Wealth Gain= 1.1 crore Expected Total amount= 14987219 ( 1.5 Crores) I hope this an If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? Rs. 10000 per month means 240 percent per annum rate of interest You cannot get through investments anywhere in the world If you have financial discipline and know the techniques of doing any business activity, you can definitely get the return in the long run See the example: Buy clothes worth Rs. 50000 (need not be in a single day). You have purchased 500 pieces at Rs. 100 per piece. Start selling th Where should I invest Rs 30,000 every month? Hey Keshav, I am not a Financial Adviser, so i can’t advise where to invest, but here’s what i will do as a middle class investor. Split that 30K into three parts: 15,000 - Plan A I will invest this money in Fixed , PPF or RD deposit every month without fail, i will make sure, all the interest generated will also be put back into this account again and again. until i really need it for emergency or re-investing it in Home down payment, This money will only be for the most important need. 10,000 - Plan B I will take the next 10K, and split it in to 7K and 3K. With 7K i will find two good mutual funds If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? First of all, any mutual fund question is incomplete without a Goal and Individual Age. Have you thought why you are investing 3000 and till what period ? What is your target amount? Without having answers to these questions it doesn't matter you invest in 1 fund or 100 funds. Now for your purpose we make assumption that you are now 25 years old and you need 80 lakhs amount for your child higher education after 25 years (that is your child may be at a age of 21) So as you are investing early I assume you could take a bit higher risk and target small cap funds with 15% annual returns expectation I If I invest 2,000 rupees per month in SIP for 10 years, in which fund should I invest, and how much will I get a return after 10 years? My suggestion would be to go for Mid Cap Mutual Funds. There are quite a number of Good Mid Cap Funds available for investments like: Quant Mid Cap Fund, Nippon India Growth Fund, HDFC Mid Cap Opportunities fund, SBI Magnum Mid Cap fund etc. etc. Now how much you will get after 10 Years. For Example Quant Mid Cap Fund - Direct Plan has NAV of Rs 197.99 its 3 years returns are 36.83 % and returns since launch of fund is 18.64 % and its assets under management is Rs 3781 Crores. Suppose you do Monthly SIP in this fund for 10 years or 120 months and we assume the fund will return 15 % average then you I want to invest in SIP, 1000 per month for 5 years. Is there any SIP available with this amount? You can start your investment in mutual funds via SIP of Rs. 1000 for 5 years. Checkout following schemes in which you can begin your investment. Reliance Tax Saver ELSS G Axis Long Term Equity Fund G SBI Magnum Multicap Fund G ICICI Pru Value Discovery Fund G L&T Tax Saver Fund G HDFC Long Term Advantage Fund G Franklin India Tax Shield Fund G Sundaram Diversified Equity G UTI Mastershare G UTI Balanced Fund G UTI Bond Fund G Sundaram Money Fund G Following calculations are takes place : Monthly Investment (SIP) = Rs. 1000 Time Horizon (in years) = 5 years Expected Return (%) = 12.5 Total SIP Amount Invested What should I do with Rs. 50,000 to earn Rs. 10,000 per month? There are lots of things you can do with your Rs 50,000 but if you invest in bitcoin, stock exchange or start trading you first have to know how these things work don't Just invest blindly. I would suggest you invest it in yourself get knowledge, get smarter. Look at it this way right now the 2ND richest person on this planet is Jeff Bozos the CEO of Amazon. Yes he's a billionaire. Now think about it for a second does Amazon have physical store ? No. Does it advertise on TV ? No. It all started form internet and it's where it generates it's traffic from. In America about 50% of people earn from I want to invest 15-20k per month in SIP, how much return is expected after say 2-3 years? Of Rs.20,000 invest Rs.10,000 in Equity mutual funds, Rs.5,000 in Balanced funds and Rs.5,000 in Debt mutual funds. Normally it will more than 3 years to see decent return from equity & balanced mutual funds but the return will be good around 13% to 15% (Tax free). As for debt funds, you will see returns sooner and it will be around 9% (Taxable). In three years returns won’t be much. You will be investing around Rs.7 lakh and you may have return of around Rs.60,000 after 3 years. But as years goes on, power of compounding takes effects and you will see massive returns in long term like in 15 ye I have Rs. 50,000 with me to invest. Where can I invest so that I get an insured monthly return of Rs. 10,000? I recommend you to invest in yourself by doing a professional course so that you stop asking these type of question. By investing money in yourself you may open a business for yourself and can much more. On investment term, the monthly return of 20% is possible only in a poonzi scheme where chances of losing money are very high. How can I generate a monthly income of Rs 50,000 from Rs 20 lakh? Learn “Income investing” method which goes on like this: Buy a basket of banks : HDFC BANK, ICICI and Kotak. These 3 make the major market cap of all banks. You can put these “Shares as Margin” with good brokers like ICICIDIRECT and get up to 85% of amount as margin. Thus investment of 20L gives u a margin of about 17L. Sell Banknifty (BN) call contracts about 40–50 days from current date and such that the premium comes close to ?50,000 ?50k premium needs to write 2500 points of BN contracts as the lot size is 20. Writing 1 Lot requires about 60k of capital. With 17L capital, you can write about 2 If I invest 1000 per month in SIP for 20 years, how much will I return after 20 years? For this amount, which fund is best for me? If you Invest in SBI Small Cap Mutual Fund thru SIP of Rs 1000 per month for 20 Years or 240 months then your Expected Fund value at the end of the 20 th Year would be Rs 24,38,856.38 approx. SBI Small Cap Fund is currently returning 25.81 % average since its launch. However, in the above calculation I have considered only 20 % average returns. Your total Investment Rs 1... If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? It depends. If u want to have sound sleep in nights without worrying about fluctuations, balanced advantage funds r great. In theory they follow the principle of BUY LOW and SELL HIGH. Again it's a very individual preference. Everyone is UNIQUE and should invest as per his/her capacity and personal situation. Ideal would be to invest in combination of NIFTY 50 index funds and NIFTY next 50 index funds Again the proportion can vary from 70:30 to 50:50. Many people will say I have high risk tolerance but remember to recover 5% loss u haveto earn double 10 % of profit and so on. So it's better to have hi If I invest ?1000 for 10 years in SIP what will be my returns? I want to invest 2K per month for two years in SIP. What are the best SIP Plans for that? If I plan to invest Rs. 3000 in SIP every month, should I put it all in 1 best MF or Rs. 500 each in 6 different MFs? Where do I invest Rs. 2000 per month for SIP? What if I started investing 2000rs / month in SIP for 40 years? Which SIPs are good for investing Rs 500 per month to get Rs 20 lakh and above after 16 years? Which are the best long-term MF SIPs to invest Rs. 4,000 per month? How do I invest 500 Rs per month? What capital do I need to invest to get Rs.20K per month in dividends? I want to invest 5000 (fixed) as SIP every month for my sister for 10-15 years for a corpus of 30 lakhs. What are some good funds for investment?
Ans: It's great that you're exploring investment options and seeking advice. Investing in SIPs can be a prudent way to build wealth over the long term. Here are some general considerations and principles to keep in mind:

Diversification: It's often recommended to diversify your investments across different asset classes and fund categories. This helps spread risk and maximize potential returns. Consider allocating your investments across equity, debt, and balanced funds based on your risk tolerance and investment objectives.

Investment Horizon: Determine your investment horizon, which refers to the length of time you plan to stay invested before needing to access the funds. Longer investment horizons typically allow for more aggressive investment strategies, whereas shorter horizons may necessitate a more conservative approach.

Risk Tolerance: Assess your risk tolerance carefully and choose funds that align with your comfort level. Equity funds tend to offer higher potential returns but also come with higher volatility and risk. Debt funds, on the other hand, offer lower risk but typically lower returns.

Expense Ratio: Pay attention to the expense ratio of the mutual funds you're considering. Lower expense ratios can translate to higher returns for investors over the long term, as less of the fund's assets are consumed by fees and expenses.

Fund Performance: While past performance is not indicative of future results, it's still essential to review the historical performance of mutual funds before investing. Look for funds with a consistent track record of delivering returns that align with your investment goals.

Review Regularly: Regularly review your investment portfolio and make adjustments as needed based on changes in your financial situation, investment goals, and market conditions. Rebalancing your portfolio periodically can help ensure that it remains aligned with your objectives.

Seek Professional Advice: If you're unsure about which funds to choose or how to construct a well-diversified portfolio, consider seeking advice from a qualified financial advisor. An advisor can assess your individual circumstances and help tailor an investment strategy that meets your needs.

Remember that investing involves risks, and it's essential to conduct thorough research and exercise due diligence before making any investment decisions. By following these principles and investing consistently over time, you can work towards achieving your financial goals.

Best regards.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |1318 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Asked by Anonymous - Jan 29, 2024Hindi
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Hi Sir. I am 29 years old and have a saving of 5lac now so I want to invest it in lumpsum SIP for 10 years. Could you please suggest me which fund would be better including small, mid and large where I can get over 25 returns
Ans: Investing a lump sum in SIPs for 10 years is a wise move towards building wealth. Considering your age and investment horizon, here's a diversified portfolio suggestion that includes exposure to small, mid, and large-cap stocks:

Large-Cap Fund: Invest a portion of your funds in a reputable large-cap fund known for its consistent performance and stability. Large-cap funds invest in well-established companies with a track record of strong earnings and market leadership.
Mid-Cap Fund: Allocate another portion to a mid-cap fund, which focuses on companies with medium market capitalization. Mid-cap stocks have the potential for higher growth than large-cap stocks but come with higher volatility.
Small-Cap Fund: Lastly, invest in a small-cap fund to capture the growth potential of smaller companies. Small-cap stocks can be more volatile but offer the possibility of significant returns over the long term.
Ensure to select funds with a proven track record, experienced fund managers, and low expense ratios. While aiming for over 25% returns is ambitious, it's crucial to remain realistic and consider the associated risks. Diversification across different market segments can help mitigate risks and enhance potential returns.

Consulting with a Certified Financial Planner can provide personalized advice tailored to your financial goals and risk tolerance. They can help you select suitable funds and construct a well-balanced portfolio aligned with your investment objectives.

...Read more

Ramalingam

Ramalingam Kalirajan  |1318 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Asked by Anonymous - Jan 28, 2024Hindi
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Hi I'm investing 1500 in nifty mid cap 150 index, 1000 in nifty next 50 index and 500 in nifty 50 index. 100 percent passive investment fpr long term. Any suggestions with allocation or diversification?
Ans: Here's a breakdown of your current portfolio and some thoughts on active vs. passive investing:
Current Portfolio:

Nifty Midcap 150 Index (1500): This is a good way to gain exposure to mid-sized companies in India.
Nifty Next 50 Index (1000): This provides exposure to companies on the cusp of joining the Nifty 50, potentially offering higher growth.
Nifty 50 Index (500): This offers diversification with large, established companies.
Overall, your portfolio is leaning towards a growth strategy with a good focus on mid-cap and small-cap companies. This has the potential for higher returns but also comes with higher risk.

Active vs. Passive Investing:

Active Funds: These are managed by professionals who try to outperform the market by picking winning stocks. While active management can be successful, studies show that over the long term, a large percentage of actively managed funds underperform their benchmark index. The fees associated with active management also eat into returns.

Passive Funds (Index Funds): These track a market index, like the Nifty 50. They offer lower fees and historically, tend to match or outperform a significant portion of actively managed funds. This makes them a good option for long-term investors who don't want to spend a lot of time managing their portfolio.

Here's why your current approach with index funds is a good strategy for long-term investing:

Low Cost: Index funds have minimal fees, allowing you to keep more of your returns.
Diversification: You're already diversified across different market segments, reducing risk.
Long-Term Focus: With a long-term outlook, riding out market fluctuations is easier, and index funds tend to perform well over time.
Here are some additional thoughts:

Asset Allocation: Consider your risk tolerance and investment goals. You could adjust your weightings between the Nifty 50, Next 50, and Midcap 150 to achieve your desired risk profile.
Rebalancing: Periodically rebalance your portfolio to maintain your target asset allocation.
Ultimately, the decision of active vs. passive is yours. However, for a long-term investor with a focus on low costs and diversification, a passive approach with index funds is a well-supported strategy.
Lastly, if you're open to exploring active funds, consider consulting with a professional Mutual Fund Distributor (MFD) with Certified Financial Planner (CFP) credentials. They can provide personalized advice and recommend active funds that have the potential to outperform their respective indices over time.

...Read more

Ramalingam

Ramalingam Kalirajan  |1318 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Ramalingam

Ramalingam Kalirajan  |1318 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Asked by Anonymous - Jan 28, 2024Hindi
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Dear sir My sister is a heart patient and spending around Rs 5000 per month.She is a widower and age arround 65. I want to deposit an amount of ? 1500000.00 in her name at Senior citizens scheme apart from already deposited 400000 lac. I put my daughter name, her grandchildren name as nominee. Any hurdles in this one. Please send the reply to me
Ans: It's heartwarming to see your concern for your sister's well-being, especially given her health condition. Depositing an additional amount in her name under the Senior Citizens Savings Scheme (SCSS) can indeed provide her with financial security during her retirement years.

As for the nomination process, nominating your daughter and her grandchildren as beneficiaries is a thoughtful gesture. However, there might be some considerations to keep in mind:

Consent: Ensure that your sister is aware of and agrees to the nomination arrangement. It's essential to respect her wishes and ensure that she is comfortable with the decision.
Legal Requirements: Verify if there are any specific legal requirements or restrictions regarding nominees for SCSS accounts. While nominating family members is common, it's prudent to confirm compliance with applicable regulations.
Contingency Planning: Consider discussing contingency plans with your daughter regarding the management of the funds in case of your sister's demise. This ensures a smooth transition and effective utilization of the funds for your sister's intended beneficiaries.
Documentation: Complete all necessary paperwork accurately and ensure that the nomination details are correctly recorded in the SCSS account documents.
Consulting with a financial advisor or legal expert can provide personalized guidance tailored to your sister's situation and help navigate any potential hurdles or concerns. Your proactive approach to securing your sister's financial future demonstrates care and foresight, and with careful planning, you can ensure that her needs are well-addressed.

...Read more

Ramalingam

Ramalingam Kalirajan  |1318 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

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Hi Vivek my name is Anand and Iam 48 yrs old. I am investing monthly 32165/- in the following funds. DAY AMT SCHEME 1 1000 SBI Small Cap Fund-Direct-Growth 2 1000 Kotak Emerging Equity Fund - Direct Plan - Growth 1000 DSP Midcap Fund-Direct-Growth 1000 Mirae Asset Large Cap Fund Direct Plan Growth 1000 BANDHAN Sterling Value Fund-Growth-(Direct Plan) 6 7 1000 SBI Small Cap Fund-Direct-Growth 8 9 1250 Kotak Emerging Equity Fund - Direct Plan - Growth 10 1250 Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth 11 1250 DSP Midcap Fund-Direct-Growth 12 1250 Mirae Asset Large Cap Fund Direct Plan Growth 13 1000 BANDHAN Sterling Value Fund-Growth-(Direct Plan) 14 15 1000 SBI Small Cap Fund-Direct-Growth 16 1250 Kotak Emerging Equity Fund - Direct Plan - Growth 17 1250 DSP Midcap Fund-Direct-Growth 18 1250 Mirae Asset Large Cap Fund Direct Plan Growth 19 1000 BANDHAN Sterling Value Fund-Growth-(Direct Plan) 20 1250 Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth 21 1000 SBI Small Cap Fund-Direct-Growth 22 23 24 1000 Kotak Emerging Equity Fund - Direct Plan - Growth 25 1000 DSP Midcap Fund-Direct-Growth 26 1000 SBI Small Cap Fund-Direct-Growth 27 1000 BANDHAN Sterling Value Fund-Growth-(Direct Plan) 28 1000 Mirae Asset Large Cap Fund Direct Plan Growth I am planning for next 10 years and how much corpus can I get after 10 years.
Ans: Anand! It's great to see your commitment to investing for the future. Planning for the next 10 years is a wise move, and with your regular investments in diversified mutual funds, you're on the right track to building a substantial corpus.

To estimate the potential corpus after 10 years, we need to consider several factors such as the expected average annual return rate of the funds, any additional contributions you may make, and the compounding effect of your investments over time.

Since you've invested in a mix of small-cap, mid-cap, large-cap, and value funds, it indicates a diversified approach aimed at optimizing returns while managing risk.

To provide a precise estimate, it's advisable to use a mutual fund calculator or consult a financial advisor. They can input the specific details of your investments, including the current value, expected returns, and future contributions, to forecast the potential corpus after 10 years.

Remember, while forecasting future returns is essential for planning, it's equally crucial to stay invested consistently, review your portfolio periodically, and make adjustments as needed to stay aligned with your financial goals and risk tolerance.

Keep up the disciplined approach to investing, and you'll likely see your investments grow significantly over the next decade.

...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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