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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 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
Pankaj Question by Pankaj on May 02, 2024Hindi
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sir Mera 12 lacs ka loss ho rakha hai share market mei. job chal rahi salary 60 k hai. lekin emi proper nhi de pa raha hoon aur ghar par kharcha bhi nhi chala pa raha hoon.4 credit cards hai aur 1 bajaj finserv aur 2 app loan hai. app loan 3-4 mahine se emi nhi di hai. depression mei chal reha hoon. Har time yahi dhar laga rehata hai koi legal action na ho jaaye. koi solution batayen please

Ans: I understand that you're going through a tough time with a significant loss in the stock market and financial challenges. Here are some steps you can take to address your situation:

Seek Professional Help: Consider consulting a financial advisor or counselor who can provide guidance on managing your debts and creating a budget plan.
Prioritize Payments: Make a list of all your debts, including credit cards and loans, and prioritize payments based on interest rates and penalties for late payments.
Communicate with Lenders: Reach out to your lenders and explain your situation. Many financial institutions offer hardship programs or repayment plans that may help alleviate some of the financial pressure.
Budgeting: Create a detailed budget to track your income and expenses. Identify areas where you can cut back on spending to free up funds for debt repayment.
Focus on Mental Health: It's essential to prioritize your mental health during this challenging time. Consider seeking support from a therapist or counselor who can help you cope with depression and anxiety related to financial stress.
Explore Legal Options: If you're concerned about potential legal action, consider consulting with a legal professional to understand your rights and options.
Take Small Steps: Remember that addressing financial challenges takes time, and it's okay to take small steps towards improvement. Celebrate each milestone along the way, no matter how small.
Stay Positive: While it may seem overwhelming now, remember that there are solutions available, and you're not alone. Stay positive and focus on taking proactive steps towards improving your financial situation.
Remember, seeking help is a sign of strength, not weakness. By taking proactive steps and reaching out for support, you can overcome these challenges and regain financial stability.
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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Dear Khevna Shah I am in the business of my father's after his death with my uncle for the last 15 years and so and when my father died my age was 22 and I was a simple, shy and fear boy and was happy and i am doing the accounts job and i was not taking my salary on monthly basis or yearly basis means i want to say that i take 200 or 500 or sometimes 10000 to 20000 as per my requirement and sometimes i have to give it to my mom for her personal expenses. After two and half years, i was having problems with my uncle due to professional reasons and i was talking to him at that time and discussing all the problems and business related issues facing by me and he was listening but not responding to my problems during these years and after passing of two and half years i tried my best for talks, discussion but i was not getting any response from his end and after that period i stopped myself for any talks, discussion and sharing with him and I was prepared to left him and go elsewhere and do something new or do a job or start a new business on my own as we were are living in joint family and still we are in joint. Mam i did not left him and he provided me a new business and I became the proprietor of that new business and i didnot have any idea of that new business and when i engaged in that business i came to know that this business is all runs on liabilities for around three months to six months and depends on how you capture the market with low competitive rates and that time was new and i was not having any distributorship also and the business went on losses and i have beared losses for almost lakhs and lakhs of rupees. So, I closed the shop and again started doing account job in my father's business with my uncle as all the decisions related to business was taken by my uncle and same problem which i was facing in my early stage was repeated and the days were passing as it was passing previously. Now when corona came in the world, we were all lockdown in our homes and in that time we were all of our family members lockdown in our home. In that period we were all fighting with the corona that when will corona go and when we will go outside again and when will our normal life will start we were talking about our works of home should be divided. In that period all the works were divided and when lockdown was over and we were slowly slowly coming back to normal. Our joint family divided and now we are separate but our business is not separate and i am getting the salary fixed after our separation. Now the problem is that the salary fixed is not upto the mark and i am facing financial crisis at my end and our relation are so so and i am facing heated conversation with my wife related to money problems as i have to give her the money for household activities, personal expenses, my child school fees, admission fees and other activities related to school and i am very much exhausted with all the daily dose. So, therefore what will be my steps to go forward regarding the issues with my uncle and the problems which i am facing right now and have a peaceful time.
Ans: Dear Ashish,
Time and again you have been waiting for things to change in your favour. Your first sign was when your uncle's resistance at doing or thinking anything good for you.
Good nature of yours to trust him and still keep at it, but I guess now being in your 30s, should tell you that you need to make your life yourself and on your own terms.
Don't hang around thinking that the tides will change for you; instead change things the way you want by breaking free. Now. how you want to do it; is something that you need to discuss with your wife and decide. You have been far too dependent on this dream world that your uncle is going to make things happen and will be kind to you.
Be kind to yourself and now ask yourself:
- how can I revive my financial position on my own?
- what support do I need and from whom to achieve this?
- how can I keep myself motivated every day as I change things for the better?

The time has also come to have a clear chat with the person controlling the business. It gets messy when the family is divided and the business is still joint. Money troubles are never going to have clarity ever in this type of an arrangement. So, take matter into your own hands without fearing the outcome and think of only how you can have a better and peaceful life. The answer will be crystal clear to you.

All the best!

..Read more

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Harsh Bharwani  |56 Answers  |Ask -

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Asked by Anonymous - Jun 23, 2023Hindi
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Dear sir i am 51 yr old ,i had a very tough life,i was bright and honest student..i got adhoc lecturer ship which i have to left as it was adhoc only i like my profession but i had to left ..than i join with help of my friend sales which i don't like but to earn i did and rose to higher management level...my married elder brother was having depression,i left the parental home to help him ,my parents were both retired govt employees getting good pension...i struggled to make both ends meet..later on my parents get medical trouble still my wife took care of them at my house.. I left the job in 2010 me and my friends who bring me job started the business but he ditched me the first day on business i take courage and continued the business... Meanwhile my parents refused yo help....after 3 yr of my business my parents come to help them as my mother has to do 3 month complete bed rest ,me and my wife helped them after that they come for 2 -3 months in a year for 5 years but after that my mother starts querlling with my wife ,i stoped their coming but told i will help them they need..i helped them during covid ,and other medical problems ,in 2021 my father passed away in i met an car accident my mother refused to give registery of copy in cour yo get bail..i stopped my all relation on this ...my daughter went to canada in sep 2021..i took 7 lacs loan and rest i paid from my savings ..this month her course was supposed to finish but what i realize that she failed in 13 exams..she told me first time than i told her to not worry i concentrate for future one but she lied and failed in other one also what she disclosed now,i have to pay further 10 lacs..my business is alo down and my son is not selected my medical field business,i have to collect aprx 40 lacs from market ,i tried hard for tie up overtake or job at this age but kot getting...it is become hard to run business with no family member in same business in future and tonpay to daughter ..i am gojng to shut it down in next month and do something else...with low cost business as i have to pay monthly salaries and rent of aprox 2.5 lac...i am in big trouble...No one to help me out..i never tried my 0mother brother sister whom i helped in their every cause...i knew they will not help as they not helped me in all my troubles...
Ans: I'm really sorry to hear about the difficult circumstances you've faced in your life. It sounds like you've gone through a lot of challenges and have been dealing with various setbacks. It's understandable that you may feel overwhelmed and frustrated at this point.
In times of hardship, it's important to remember that there is always hope and the possibility of finding solutions. Here are a few suggestions to consider:

1. Seek Professional Help: Given the complexity of your situation and the emotional toll it has taken on you, it may be beneficial to seek professional support. Consider reaching out to a counselor, therapist, or support group to help you navigate through your challenges and emotions. They can provide guidance and assist you in developing coping strategies.
2. Financial Assistance: If you're struggling with loans and financial obligations, it might be worth exploring options for financial assistance. Consult with a financial advisor or research available schemes, grants, or loans that could potentially help you manage your debts and ease the financial burden.
3. Career Transition: As you mentioned, shutting down your current business and exploring other low-cost business options might be a viable solution. Assess your skills, interests, and market demand to identify alternative business opportunities that align with your capabilities and resources. Consider seeking advice from business mentors or professionals in your desired industry to help you make informed decisions.
4. Network and Support: While it may feel like you're alone, reach out to your social network for support. Friends, acquaintances, or industry professionals might have insights, connections, or opportunities that could be beneficial. Building a support system can provide emotional support and potentially open doors for new opportunities.
5. Prioritize Self-Care: In challenging times, taking care of yourself is crucial. Make sure to prioritize self-care activities such as exercise, relaxation, hobbies, and spending time with loved ones. Maintaining your physical and mental well-being will help you navigate through difficulties with a clearer mindset.
6. Maintain Resilience: Remember that setbacks are a part of life, and resilience is key. While it may feel overwhelming now, focus on developing a positive mindset and persevering through challenges. Draw on your past experiences of overcoming adversity to fuel your resilience and determination.

Finally, know that it's never too late to make a fresh start or seek new opportunities. It may take time, effort, and a shift in mindset, but with perseverance and resilience, you can work towards a better future. Reach out for help, explore available resources, and stay determined. Wishing you strength and the best of luck as you navigate through this difficult period.

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 18, 2024Hindi
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I am a working professional. I am 42 years old. I own a house and an office and a small residential flat currently and sip of 1.35 lacs per month since last 4 years, have investment in shares of around 10 lacs and 5-7 in FDR. I hav a son studying in 8 class. my expenses are around 1 lacskwhich are shared by my wife too. I can work for another 10 years. I need to understand whether the investment and saving are good enough for me to have a a secured retired life.
Ans: It’s wonderful that you’re thinking about securing your retirement. At 42, you’ve achieved a lot, owning multiple properties and having substantial investments. Let’s evaluate your current financial standing.

Investments and Savings Overview
Your SIP of ?1.35 lakhs per month is impressive. It shows commitment to long-term wealth building. Investing in shares and FDRs adds diversity to your portfolio. This is a strong foundation for future security.

Income and Expenses
Your monthly expenses are ?1 lakh, shared with your wife. This indicates a balanced financial life. With your current SIP and other investments, you’re on a good path.

Future Financial Needs
You plan to work for another 10 years. Considering your current savings and investment habits, you’re preparing well for retirement. Let’s break down your future financial needs and how to achieve them.

Education Fund for Your Son
Your son is in 8th class, so higher education costs are approaching. Start a dedicated education fund. This ensures his future needs are met without impacting your retirement corpus.

Retirement Corpus Calculation
Estimate your post-retirement monthly expenses, accounting for inflation. If your current expenses are ?1 lakh, this might double by retirement. Ensure your investments grow enough to cover these future costs.

Evaluating Your Investment Portfolio
Mutual Funds (SIP):

Continue your SIPs. They offer growth potential and help in wealth accumulation. Diversify across equity and debt funds for balanced risk.

Shares:

?10 lakhs in shares is good. Ensure it’s diversified across sectors. Avoid over-concentration in a single stock or sector.

Fixed Deposits (FDR):

?5-7 lakhs in FDRs provides stability. Keep these for emergency funds or short-term goals. They offer safety but lower returns compared to other investments.

Suggestions for Improvement
Review and Adjust Your Portfolio:

Regularly review your investment portfolio. Adjust based on market conditions and your risk tolerance. Consult a Certified Financial Planner (CFP) for personalized advice.

Increase SIPs Gradually:

If possible, increase your SIP contributions annually. This boosts your retirement corpus and takes advantage of compounding.

Diversify Further:

Consider adding balanced funds and large-cap funds. They offer stability and steady growth, crucial for long-term goals like retirement.

Avoid Over-Reliance on Real Estate:

While real estate is a solid asset, diversify into other financial instruments. This reduces risk and ensures liquidity.

Creating a Comprehensive Financial Plan
Emergency Fund:

Ensure you have an emergency fund covering 6-12 months of expenses. This protects against unforeseen events and provides financial security.

Insurance:

Have adequate health and life insurance. This safeguards your family’s financial future in case of medical emergencies or unforeseen events.

Retirement Planning:

Estimate your retirement corpus considering inflation. Use retirement calculators and consult a CFP for precise planning.

Tax Planning:

Optimize tax savings through appropriate investment choices. Utilize tax-advantaged accounts and investments to maximize returns.

Conclusion
You’re on a strong path with your investments and savings. Continue your SIPs, review your portfolio, and adjust as needed. Diversify your investments and ensure you have adequate insurance and emergency funds. With disciplined savings and strategic planning, you’ll achieve a secure and comfortable retirement.

Genuine Compliment:

Your dedication to investing ?1.35 lakhs monthly is commendable. It shows foresight and commitment to securing your financial future.
It’s impressive how you’ve balanced multiple investments and properties while planning for your son’s education and your retirement.

Final Thought
Keep up the disciplined approach. Regular reviews and adjustments will ensure you’re on track for a secure retirement. Consult a Certified Financial Planner for personalized guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 18, 2024Hindi
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Hi sir my age is 29 how to start in investment my one income 900 rupees I don't have any savings please help me how to savings stat and investment plans
Ans: It's great that you want to start investing and saving. With an income of ?900 per month, it can be challenging, but every small step counts. Let’s explore how you can begin saving and investing.

Understanding Your Current Financial Situation
First, understand your income and expenses. Track your monthly spending to identify areas where you can cut back. Even small savings can add up over time.

Setting Realistic Goals
Start with small, achievable goals. Aim to save a portion of your income each month. This helps build a habit of saving.

Creating a Budget
Track Income and Expenses

List all your monthly income and expenses.
Identify non-essential expenses you can reduce or eliminate.
Allocate Savings

Aim to save at least 10% of your income. With ?900, this means saving ?90 each month.
Emergency Fund

Build an emergency fund for unexpected expenses. Start small, aim for ?500 initially.
Saving Methods
Savings Account

Open a basic savings account. It’s safe and earns a small interest.
Recurring Deposit (RD)

Consider starting a recurring deposit with your bank. You can deposit a small fixed amount each month. It’s a disciplined way to save.
Basic Investment Options
Systematic Investment Plans (SIPs)

Start a SIP with as little as ?500 per month. Mutual funds have options for low initial investments. SIPs help in disciplined investing and can offer good returns over time.
Public Provident Fund (PPF)

PPF is a safe and long-term investment option. You can start with small amounts and increase contributions as your income grows.
Government Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY)

Open a Jan Dhan account. It offers no minimum balance requirement and other benefits like insurance.
Atal Pension Yojana (APY)

A pension scheme for workers in the unorganised sector. You can contribute small amounts to secure your retirement.
Increasing Your Income
Skill Development

Invest in learning new skills to increase your earning potential. Look for free or low-cost courses online.
Part-Time Work

Consider part-time jobs or freelancing to supplement your income. This additional income can boost your savings and investment capacity.
Discipline and Patience
Consistency

Regular saving and investing, no matter how small, will yield results over time. Be consistent with your contributions.
Avoid Debt

Avoid unnecessary loans or credit. If you must borrow, ensure you can manage the repayments.
Reviewing and Adjusting
Regular Review

Review your budget and savings plan regularly. Adjust your savings and investment as your income grows.
Seek Advice

Consult a Certified Financial Planner for personalized advice as your financial situation evolves.

Starting with a small income can be tough, but your determination to save and invest is commendable. Every rupee saved is a step towards financial security. Stay committed, and over time, you’ll see the benefits of your disciplined approach.

Conclusion
Beginning your investment journey at 29 with a limited income is challenging but possible. Start by creating a budget, saving consistently, and exploring safe investment options. Increase your income through skill development and part-time work. Regularly review your progress and adjust your plan as needed. Your commitment to saving and investing will pave the way for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

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Hello Sir, I have started investing in sip from last month's and investing around 65k per month in 7 mutual funds which includes Nippon small cap,quant small cap, quant mid cap, Edelweiss balanced fund, canara robeco bluechip ,HDFC nifty 50 and Parag parikh flexi cap. As I want to make a Corpus of 1 crore in next 7-10 years is it good to continue with these funds or I need to do some changes. Please advise
Ans: Your initiative to start SIPs and invest ?65,000 monthly is commendable. At 7-10 years, achieving a corpus of ?1 crore is a realistic goal. Let's review your current funds and see if any adjustments are needed.

Current Fund Analysis

Nippon Small Cap and Quant Small Cap

Small cap funds offer high growth potential but are volatile. Holding two small cap funds increases risk. Diversifying to other categories can balance this risk.

Quant Mid Cap

Mid cap funds balance growth and stability. They are less volatile than small cap funds. This fund adds valuable diversity to your portfolio.

Edelweiss Balanced Fund

Balanced funds, also known as hybrid funds, invest in equity and debt. They provide stability and moderate growth. This is a good choice for risk management.

Canara Robeco Bluechip Fund

Large cap funds invest in well-established companies. They offer stability and steady returns. This fund adds a layer of safety to your portfolio.

HDFC Nifty 50

Nifty 50 index funds track the performance of the Nifty 50 index. However, actively managed funds often outperform index funds. Consider switching to an actively managed large cap fund.

Parag Parikh Flexi Cap Fund

Flexi cap funds invest across market capitalizations. They provide flexibility and diversification. This is a strong choice for a long-term portfolio.

Diversification and Risk Management

Diversification is crucial to managing risk. Your portfolio should balance growth and stability. Small cap funds should not dominate your portfolio. Consider reducing exposure to small caps.

Advantages of Actively Managed Funds

Actively managed funds adjust to market conditions. Fund managers seek opportunities for higher returns. This can outperform passive index funds like HDFC Nifty 50.

Regular Review and Adjustment

Regular reviews ensure your investments align with goals. Adjustments may be necessary as market conditions change. Consulting a Certified Financial Planner can provide personalized advice.

Investment Strategy for Corpus Growth

Reduce Small Cap Exposure

Keep only one small cap fund.
Diversify remaining investment into other categories.
Increase Large Cap and Balanced Fund Allocation

Allocate more to large cap and balanced funds.
These funds provide stability and steady growth.
Consider Multi Cap Funds

Multi cap funds invest in large, mid, and small caps.
They offer balanced growth and risk management.
Switch from Index Fund to Actively Managed Fund

Consider an actively managed large cap fund.
These funds aim to outperform the market index.
Empathy and Understanding

Your dedication to securing your financial future is admirable. Balancing growth and stability in your portfolio shows wisdom. Your goal of ?1 crore is achievable with the right strategy.

Conclusion

Your current mutual fund investments are strong. However, reducing small cap exposure and adding more large cap and balanced funds can enhance stability and growth. Regularly review and adjust your portfolio. Consulting with a Certified Financial Planner can provide tailored advice. Your commitment to investing wisely will ensure you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 18, 2024Hindi
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I want invest 2lac now.I am aging at 65.suitable 3years fund recommendations needed.
Ans: At 65, preserving capital and generating moderate returns are key goals. Your plan to invest ?2 lakhs for three years shows prudence. Balancing safety and returns is crucial at this stage.

Advantages of Short-Term Funds

Short-term funds are ideal for three-year investments. They offer stability and modest returns. These funds primarily invest in debt securities, providing safety and liquidity.

Types of Short-Term Funds to Consider

Debt Funds

Debt funds invest in bonds and securities. They offer stability and predictable returns. These funds are less volatile than equity funds.

Balanced Funds

Balanced funds mix equity and debt. They offer moderate returns with some risk. These funds are suitable for conservative investors.

Liquid Funds

Liquid funds invest in short-term instruments. They offer high liquidity and safety. These funds are ideal for preserving capital.

Evaluating Your Risk Tolerance

Assessing your risk tolerance is crucial. At 65, lower risk is preferable. Debt funds and balanced funds align with this approach. They provide stability and moderate growth.

Advantages of Actively Managed Funds

Actively managed funds offer professional oversight. Fund managers adjust portfolios based on market conditions. This can enhance returns compared to passive funds.

Disadvantages of Thematic Funds

Thematic funds focus on specific sectors. They can be volatile and risky. Avoid thematic funds for short-term investments. Diversified funds offer better safety and returns.

Investment Strategy for Three Years

Debt Funds

Invest in high-quality debt funds.
Look for funds with a good track record.
Ensure the fund has a mix of government and corporate bonds.
Balanced Funds

Choose funds with a mix of equity and debt.
Ensure a conservative allocation towards equity.
These funds should have a history of stable returns.
Liquid Funds

Use liquid funds for emergency liquidity.
Invest a portion of the ?2 lakhs here.
Ensure easy access to funds if needed.
Considering Systematic Withdrawal Plans (SWP)

SWPs allow regular withdrawals from your investment. This provides a steady income. It's useful for managing expenses post-retirement. Consider setting up an SWP for monthly income.

Regular Review and Adjustment

Regularly review your investments. Market conditions change, and adjustments may be necessary. Consult with a Certified Financial Planner for tailored advice.

Your careful planning shows foresight. Investing wisely at 65 is commendable. It ensures financial stability and peace of mind.

Conclusion

Investing ?2 lakhs at 65 requires a balanced approach. Prioritize safety and moderate returns. Debt funds, balanced funds, and liquid funds are suitable options. Regular reviews and adjustments ensure your investments remain aligned with your goals. Consulting a Certified Financial Planner can provide personalized guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 19, 2024Hindi
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I am 34 now, I am having NPS contribution of Rs. 16000 per month including my Employer contribution and present NPS corpus of Rs. 1025000, I have started 30k SIP from last Month i.e. April 2024 with 10% step up, I want to retire at 50, below are my Investments, Kindly give an idea about how much money I will have at the time of my Retirement. 1. Rs. 2000: Axis Nifty Midcap 50 Index fund 2. Rs. 2000: Nippon India index fund - Nifty 50 plan 3. Rs. 2000: DSP nifty Next 50 index fund 4. Rs. 2000: Parag Parix Flexi cap Fund 5. Rs. 2000: HDFC Mid Cap Opertunities fund 6. Rs. 2000: HDFC nifty Next 50 ind3x fund 7. Rs. 2000: Kotak Multicap Fund 8. Rs. 2000: HDFC Small Cap fund 9. Rs. 2000: Axis Mid Cap Fund 10. Rs. 3000: Canara Rebeco Emerging Equity 11. Rs. 3000: Canara Rebeco Small Cap Fund 12. Rs. 3000: SBI Magnum Mid Cap Fund 13. Rs. 3000 SBI Contra Fund Regular Growth
Ans: You have a solid investment strategy with a mix of NPS and mutual funds. At 34, your focus on retirement planning is commendable. Your contributions and diversified portfolio show a proactive approach to financial security.

National Pension System (NPS):

Your NPS contribution of ?16,000 per month, including employer contributions, is excellent. NPS is a reliable option, offering a balanced mix of equity, government bonds, and corporate bonds. This combination helps in achieving steady growth with moderate risk. Your current NPS corpus of ?10,25,000 is a great start.

Systematic Investment Plan (SIP):

You started a monthly SIP of ?30,000 from April 2024, with a 10% annual step-up. This approach is wise as it accounts for inflation and increases your investment capacity over time. Your SIP portfolio includes various funds, which is crucial for diversification. Here's a brief overview:

Axis Nifty Midcap 50 Index Fund: ?2,000
Nippon India Index Fund - Nifty 50 Plan: ?2,000
DSP Nifty Next 50 Index Fund: ?2,000
Parag Parikh Flexi Cap Fund: ?2,000
HDFC Mid Cap Opportunities Fund: ?2,000
HDFC Nifty Next 50 Index Fund: ?2,000
Kotak Multicap Fund: ?2,000
HDFC Small Cap Fund: ?2,000
Axis Mid Cap Fund: ?2,000
Canara Robeco Emerging Equity Fund: ?3,000
Canara Robeco Small Cap Fund: ?3,000
SBI Magnum Mid Cap Fund: ?3,000
SBI Contra Fund Regular Growth: ?3,000
Advantages of Diversified Active Funds:

Diversified funds offer several benefits over thematic or index funds. Actively managed funds are overseen by professional fund managers who can make informed decisions based on market conditions. This flexibility can lead to better performance compared to passive index funds. Diversified funds spread investments across various sectors, reducing risk and increasing the potential for steady returns.

Portfolio Consolidation:

Having too many funds can dilute the benefits of diversification and complicate portfolio management. It might be beneficial to consolidate your investments into fewer, high-quality funds. This can enhance returns and make it easier to monitor and manage your portfolio.

Projected Growth and Retirement Corpus:

NPS Growth Projection:

Assuming an average annual return of 10% for NPS, your current corpus and monthly contributions can grow significantly. With regular contributions, your NPS corpus is expected to reach a substantial amount by age 50.

SIP Growth Projection:

Assuming an average annual return of 12% for your SIPs, with a 10% annual step-up, your investments can also grow impressively. Starting with ?30,000 per month and increasing annually, your SIPs will build a significant corpus over the next 16 years.

Assessing Your Total Retirement Corpus:

By combining the projected growth of your NPS and SIP investments, you can estimate a robust retirement corpus. This corpus should help you achieve your goal of retiring at 50 comfortably.

Adjustments and Recommendations:

Review and Adjust Regularly:

Regularly review your portfolio to ensure it aligns with your goals. Market conditions change, and it's essential to adjust your investments accordingly.

Avoid Thematic Funds:

Thematic funds can be volatile and sector-specific. It's better to stick with diversified funds that offer more stability and less risk.

Use the Expertise of Certified Financial Planners:

Consult a Certified Financial Planner (CFP) for personalized advice. They can help you fine-tune your strategy and ensure your investments are on track to meet your retirement goals.

Conclusion:

Your current investment strategy is well-planned and diversified. With continued contributions, regular reviews, and the guidance of a Certified Financial Planner, you can achieve a comfortable retirement at 50.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 19, 2024Hindi
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Hi sir, need guidance on investing for my father who has recently retired and wants to invest 2 lacs in income generating mutual funds.
Ans: Let's explore how to invest ?2 lakhs for your father, who has recently retired. The goal is to generate a steady income while ensuring capital preservation and growth.

Introduction to Income-Generating Mutual Funds:

Income-generating mutual funds, such as debt mutual funds, offer a balance of regular income and low to moderate risk. These funds invest in fixed-income securities like government bonds, corporate bonds, and money market instruments, providing relatively stable returns.

Advantages of Systematic Withdrawal Plan (SWP):

Regular Income Stream:
SWP allows your father to withdraw a fixed amount regularly, providing a steady income stream to meet his monthly expenses. He can choose the frequency of withdrawals, such as monthly or quarterly.

Tax Efficiency:
Unlike fixed deposits, where the entire interest is taxed, SWP withdrawals consist of both principal and gains. This structure can lead to lower tax liability, as only the gains portion is subject to tax.

Capital Preservation:
SWP helps in capital preservation as it ensures that the principal amount remains invested, potentially generating returns over time. This way, your father can benefit from the growth of the remaining corpus while receiving regular income.

Flexibility and Control:
SWP offers flexibility in terms of withdrawal amount and frequency. Your father can adjust the withdrawal amount based on his changing financial needs, providing better control over his investments.

Potential for Higher Returns:
By investing in mutual funds with a balanced approach, your father can potentially earn higher returns compared to traditional fixed-income instruments, which might not keep up with inflation.

Steps to Implement SWP in Mutual Funds:

Choose Suitable Funds:
Select balanced or conservative debt mutual funds that offer stability and moderate returns. These funds are less volatile and suitable for generating regular income.

Set Up SWP:
After investing in the chosen mutual funds, set up an SWP for the desired amount and frequency. For example, if your father needs ?10,000 monthly, set up an SWP to withdraw this amount regularly.

Monitor and Adjust:
Regularly review the performance of the mutual funds and the SWP. Make adjustments if needed to ensure that the investment continues to meet your father's income and growth requirements.

Consultation with a Certified Financial Planner:

Engage with a Certified Financial Planner (CFP) to review the investment strategy and select suitable mutual funds. A CFP can provide personalized advice based on your father's financial goals, risk tolerance, and income needs.

Conclusion:

Investing ?2 lakhs in income-generating mutual funds through an SWP can provide your father with a steady and tax-efficient income stream. The flexibility, potential for higher returns, and capital preservation make SWP an excellent choice for retirees seeking regular income.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

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Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

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

Asked by Anonymous - May 18, 2024Hindi
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Hi, I am 36 years old. Single so far. In search of life partner. I am currently doing ?1.5L SIP monthly. Majority funds are midcap and flexicap. I also started ?5K monthly gold fund. Started gold fund from two months. Current savings are ?50L cash, ?45L mutual funds, ?22.5L PF, ?5L NPS & ?16L PPF. I want to reach the goal of ?5CR networth soon and feel relaxed and retire soon. I started the journey late. However, I am done with a property buying in Mumbai and loan free now. Please suggest me steps to reach the goal
Ans: That's a fantastic plan! You've made smart choices with your SIPs, debt investments, and being property-free. Here are some steps to consider reaching your Rs. 5 crore goal:

Strong Foundation:

Regular Savings: Your Rs. 1.5 lakh monthly SIP is a great start.

Diversified Portfolio: Having a mix of mid-cap, flexi-cap, and gold funds provides diversification. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Debt Investments: Your PF, NPS, and PPF contributions provide stability and guaranteed returns.

Reaching for Rs. 5 Crore:

Time Horizon: While you started investing later, you still have a good 20-25 years for your investments to grow.

Potential for Increase: Consider increasing your SIP amount if your income allows.

Review Asset Allocation: Consulting a Certified Financial Planner (CFP) is recommended. They can assess your risk tolerance and suggest if your asset allocation (mix of investments) is optimal for your Rs. 5 crore goal.

Focus on Equity: Equity funds have the potential for higher returns compared to debt, but also come with higher risk. A CFP can help you determine the right equity allocation for your goals.

Remember:

Long-Term Commitment: Building a Rs. 5 crore corpus requires a long-term investment horizon (ideally 15+ years).

Market Volatility: Equity markets can be volatile in the short term. Stay invested for the long term to ride out market fluctuations.

Professional Guidance: A CFP can create a personalized plan considering your risk tolerance, goals, and timeline.

You've made a great start! By consulting a CFP and potentially increasing your SIP or adjusting your asset allocation, you can increase your chances of achieving your Rs. 5 crore goal!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Money
Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

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

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Hi I am a 65 year old house wife looking for investment options to take care of myself. Income sources : Son gives 10000 and husband gives 3000 per month. I have an existing FD of 2 lakh rupees. Where all I can invest and I don't have a health insurance, any suggestions to plan my investment as well as health policy
Ans: It's wonderful that you're thinking about your financial security. Here are some ideas to consider:

Understanding Your Income:

Combined Income: You have a combined monthly income of Rs. 13,000 (Rs. 10,000 from son + Rs. 3,000 from husband).

Financial Goals: Consider your financial goals. Are you looking for regular income, to grow your savings, or both?

Investment Options:

FD Reinvestment: Consider reinvesting your existing FD or its interest to earn compound interest.

Debt Funds: Debt funds offer stability and regular income, potentially suitable for your situation.

Senior Citizen Savings Scheme (SCSS): This government scheme offers attractive interest rates for senior citizens.

Importance of Health Insurance:

Medical Expenses: Medical emergencies can be expensive. Health insurance can help manage these costs.

Senior Citizen Plans: Many insurance companies offer health insurance plans specifically designed for senior citizens.

Benefits of a CFP:

Personalized Plan: Consulting a Certified Financial Planner (CFP) is recommended. They can assess your needs, risk tolerance, and suggest suitable investment options and health insurance plans.
Here's a simplified example (not a recommendation):

Invest Rs. 50,000 in Debt Funds (SIP): Start a Systematic Investment Plan (SIP) in debt funds for regular income.

Invest Remaining in SCSS: Invest the remaining amount in SCSS for a good interest rate and safety.

Get a Senior Citizen Health Insurance Plan: Choose a health insurance plan that covers your needs and budget.

Remember:

Review Regularly: Review your investments and health insurance plan (at least annually) with your CFP to ensure they remain aligned with your needs.

Start Investing Early: Even a small amount invested regularly can grow significantly over time.

Emergency Fund: Maintain an emergency fund with 3-6 months of living expenses for unexpected situations.

By taking charge of your finances and getting proper health coverage, you can secure a brighter future for yourself!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Money
Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

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

Asked by Anonymous - May 18, 2024Hindi
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Sir I am 37 and have wife and a son of age 7 years. I am not yet invested in markets and a corpus of around 30 lacs is invested in various FDs .However I would like to make a lump sum investment of around 23 lakhs in markets through various instruments out of these FDs as I understand these are not optimal enough and additionally start some SIPs. I am an executive in a PSU for last 14 years and wish take aim at two goals: a)Gathering a sufficient corpus for my son's education at the end of eleven years from now and b) Having a decent amount to retire with at an age of sixty .My in hand salary is around 1.25 lacs/month .Kindly suggest a plan as to diversification of these monetary assets for these goals.
Ans: Building Wealth for Your Family's Future: A Smart Move!
Congratulations on taking charge of your family's financial future! Moving Rs. 23 lakh from FDs to markets for your son's education and retirement is a wise decision. Here's a roadmap to consider:

Financial Goals:

Child's Education (11 Years): You need a corpus in 11 years for your son's education.

Retirement (23 Years): You aim to retire comfortably at 60 (23 years from now).

Investment Strategy:

Diversification is Key: Don't put all your eggs in one basket. Spread your Rs. 23 lakh investment across different asset classes to manage risk.

Consider a CFP: Consulting a Certified Financial Planner (CFP) is recommended. They can assess your risk tolerance, income, and create a personalized plan.

Potential Asset Allocation:

Equity Funds (SIPs & Lump Sum): Invest a portion in diversified equity mutual funds (SIPs and lump sum) for potentially higher growth over the long term. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Debt Funds (SIPs): Invest another portion in debt funds (SIPs) for stability and regular income. This could help meet your son's education needs closer to the time.

Gold (Small Portion): Consider a small allocation to gold for portfolio diversification.

Benefits of SIPs:

Rupee-Cost Averaging: SIPs help you invest regularly and benefit from rupee-cost averaging, potentially reducing the impact of market volatility.
Here's a simplified example (not a recommendation):

Equity Funds (60%): Invest 60% in a mix of Large-Cap and Multi-Cap equity funds (SIPs and lump sum).

Debt Funds (30%): Invest 30% in debt funds (SIPs) with a maturity horizon aligned with your son's education goal.

Gold (10%): Invest 10% in gold ETFs or Gold Savings Funds.

Remember:

Review Regularly: Review your portfolio (at least annually) with your CFP to ensure it remains aligned with your evolving goals.

Emergency Fund: Maintain an emergency fund with 3-6 months of living expenses in easily accessible savings.

Long-Term View: Focus on the long term for your goals. Equity markets can be volatile in the short term.

By consulting a CFP and implementing a diversified investment strategy, you can increase your chances of achieving your financial goals for your son's education and a comfortable retirement!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Money
Ramalingam

Ramalingam Kalirajan  |2617 Answers  |Ask -

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

Asked by Anonymous - Dec 02, 2023Hindi
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Money
I am 55 years of age and have 10 lakh in equity 2lakh in nifty and mf and 2 crore in pf. I want 2lakh post retirement
Ans: Planning for Your Retirement: Reaching Your Rs. 2 Lakh Monthly Goal
That's a fantastic question! Having Rs. 2 crore in your PF puts you in a good position for retirement. Here's how to potentially achieve your Rs. 2 lakh monthly goal:

Current Portfolio:

Strong PF Corpus: Your Rs. 2 crore PF corpus is a great foundation for retirement income.

Equity Investments: Your investments in equity and Nifty mutual funds have growth potential but also come with risk.

Estimating Retirement Income:

PF Pension: You can expect a monthly pension from your PF contributions. A CFP can help estimate the amount.

Investment Income: Your equity investments could generate income through dividends or capital appreciation. However, returns cannot be guaranteed.

Reaching the Rs. 2 Lakh Goal:

Bridging the Gap: There might be a gap between your estimated retirement income and your Rs. 2 lakh monthly goal.

Planning & Professional Guidance: Consulting a Certified Financial Planner (CFP) is recommended. They can assess your situation and suggest strategies to bridge the gap.

Potential Strategies:

Retirement Planning Tools: CFPs can use retirement planning tools to estimate your future income needs and suggest how to reach your Rs. 2 lakh goal.

Systematic Withdrawal Plan (SWP): A CFP can recommend creating an SWP from your existing investments to generate a regular income stream.

Additional Investments: They might suggest investing a portion of your equity corpus into debt funds for stability and regular income.

Remember:

Investment Horizon: Consider how long you plan to invest before needing the income. A longer horizon allows for potentially higher returns but also comes with higher risk.

Review and Adjust: Your retirement plan needs to be reviewed and adjusted periodically (at least annually) to reflect changes in your life and market conditions.

By consulting a CFP, you can create a personalized retirement plan that increases your chances of achieving your Rs. 2 lakh monthly goal!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Money
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