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Ramalingam

Ramalingam Kalirajan  |7948 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 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 - Oct 11, 2023Hindi
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i have a mutual fund port folio of appx 1 cr in large number of schemes invested over 30 years of my career. I am 60 now and retired. i wish to receive 1.5 lakh per month out of my investments. probably consolidate in few schemes, it is possible to achieve this figure? If not, I can add a few lakh from my share portfolio to achieve this return. Also let me know, MF which schemes i should consolidate my investment of 1 cr to get 1.5 lakh per month return?

Ans: Firstly, congratulations on building a substantial mutual fund portfolio over the span of your career. Your disciplined approach towards investing has certainly paid off.

Given your goal to generate 1.5 lakhs per month from your investments, it's essential to strike a balance between growth and income-oriented schemes. With a portfolio of 1 cr, achieving a monthly income of 1.5 lakhs might be challenging without dipping into the principal amount, especially considering the current market conditions and interest rates.

To achieve your desired income, you might need to consider a combination of mutual funds that focus on both growth and dividends. However, relying solely on dividends might not be sustainable, as it could impact the growth of your principal amount over time.

Considering consolidating your portfolio into fewer schemes could make it easier to manage and monitor. Look for well-established funds with a consistent track record of delivering returns and consider diversifying across asset classes to manage risks.

It might also be beneficial to consult with a Certified Financial Planner to develop a customized withdrawal strategy that aligns with your financial goals and risk tolerance.

Remember, investing is a journey, not a destination. Regular reviews and adjustments to your portfolio will be crucial as you transition into retirement.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

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i have mutual fund portfolio of about 90 lakh. i want to consolidate these to a few schemes, for which i need your suggestion. I am 60 and retired and am looking for 1.5 lakh per month return for next 25 years. Possible?
Ans: Optimizing Mutual Fund Portfolio for Retirement Income

As a Certified Financial Planner, I appreciate your proactive approach to consolidating your mutual fund portfolio to achieve your retirement income goals. Let's explore potential strategies to optimize your portfolio for sustainable returns over the next 25 years.

Understanding Retirement Income Needs

Retirement planning involves assessing your income requirements and ensuring your investment portfolio generates sufficient cash flow to sustain your lifestyle throughout your retirement years. With a target of Rs. 1.5 lakh per month for the next 25 years, it's essential to construct a robust portfolio capable of meeting this income goal while accounting for inflation and market volatility.

Consolidating Mutual Fund Holdings

Consolidating your mutual fund holdings simplifies portfolio management, reduces administrative complexity, and enhances overall efficiency. By streamlining your investments into a few carefully selected schemes, you can gain better visibility and control over your portfolio. Your Certified Financial Planner (CFP) can help identify redundant or underperforming funds and recommend suitable alternatives aligned with your retirement objectives.

Creating a Retirement Income Strategy

To generate a consistent monthly income of Rs. 1.5 lakh over the next 25 years, consider the following strategies:

Dividend-Yielding Equity Funds: Invest in dividend-yielding equity funds with a track record of stable returns and regular income distributions. These funds provide a source of passive income while offering the potential for capital appreciation over the long term.

Debt Funds for Stability: Allocate a portion of your portfolio to debt funds to provide stability and mitigate downside risk. Opt for high-quality debt instruments with relatively low volatility, such as government bonds and corporate debt securities. Your CFP can recommend suitable debt funds based on your risk tolerance and investment horizon.

Systematic Withdrawal Plans (SWPs): Implement SWPs to systematically withdraw a fixed amount from your mutual fund investments at regular intervals, thereby generating a steady stream of income. SWPs allow you to tailor your cash flow requirements according to your retirement income needs while preserving the principal amount.

Mitigating Risks and Ensuring Long-Term Sustainability

While aiming for a monthly income of Rs. 1.5 lakh, it's essential to adopt risk management strategies to safeguard your retirement corpus and ensure its long-term sustainability:

Diversification: Maintain a well-diversified portfolio across asset classes, sectors, and investment styles to reduce concentration risk and enhance resilience against market fluctuations.

Regular Portfolio Reviews: Periodically review your portfolio with your CFP to assess performance, rebalance asset allocations, and make necessary adjustments in response to changing market conditions or life events.

Monitoring Inflation: Factor in the impact of inflation on your retirement income needs and adjust your withdrawal rate accordingly to preserve purchasing power over time.

Conclusion

In conclusion, by consolidating your mutual fund portfolio and adopting a structured retirement income strategy, you can work towards achieving your goal of generating a monthly income of Rs. 1.5 lakh over the next 25 years. With the guidance of a Certified Financial Planner, you can navigate market uncertainties and build a resilient investment portfolio tailored to your retirement objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan  |7948 Answers  |Ask -

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

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My self Neeraj Bajpai and invested Rs. 47000.00 per month in mutual fund through SIP in Axis m/f, SBI Contra fund, Nippon fund, Parag Parikh, Motilal Oswal, Tata etc. My Goal is 2 CR next 9.5 years, its is sufficient. Already invesedt in M/F in Rs. 20 Lakhs for next 9.5 years. Please advise me.
Ans: Hello Neeraj, it's great to see your commitment to investing in mutual funds through SIPs for your financial goals. Let's delve into your situation and explore whether your current investment strategy aligns with your goal of accumulating 2 crores in the next 9.5 years.

Here are some key points to consider:

Current Investment: Your monthly SIP of Rs. 47,000 spread across various mutual fund schemes indicates a disciplined approach towards wealth creation.
Goal Analysis: Your target of accumulating 2 crores in the next 9.5 years is ambitious yet achievable with proper planning and consistent investing.
Assessment of Investment Horizon: With a relatively short time horizon of 9.5 years, it's essential to strike a balance between growth-oriented and stable investment options.
Diversification: Your investment portfolio appears diversified across multiple mutual fund schemes, which is a prudent approach to mitigate risks and capture potential returns from various market segments.
Risk Management: Given the volatility inherent in equity markets, it's crucial to periodically assess and rebalance your portfolio to ensure it remains in line with your risk tolerance and financial goals.
Regular Monitoring: Regularly monitoring the performance of your mutual fund investments and making necessary adjustments based on changing market conditions and your evolving financial situation is imperative for long-term success.
Professional Guidance: While you're already on the right track with your investments, seeking advice from a Certified Financial Planner can provide you with personalized insights and strategies to optimize your portfolio for achieving your financial goals.
In summary, while your current investment approach demonstrates prudence and commitment, it's essential to continue monitoring your portfolio's performance and make adjustments as needed to stay on track towards your goal of accumulating 2 crores in the next 9.5 years. With proper planning, discipline, and professional guidance, you can work towards achieving financial security and prosperity for yourself and your loved ones.

Keep up the good work, Neeraj, and stay focused on your financial goals. Your dedication to investing will undoubtedly yield fruitful results in the years to come.

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Dear Kanchan .. Generally it happens to me, when I have to attend any hearing before courts/ Tribunal, I become more stressed till the hearing is completed. Please suggest
Ans: It’s entirely normal to feel stressed before court or tribunal hearings. These situations can be intimidating, and the anticipation of the unknown adds to the anxiety. But it’s crucial to manage this stress to ensure you perform at your best and protect your mental well-being.

Start by preparing thoroughly for the hearing. The more you know about the case, the arguments, and the possible questions, the more confident you’ll feel. Practice your statements or answers, perhaps with a colleague or in front of a mirror. Visualization can also be powerful—imagine yourself confidently presenting your case and everything going smoothly.

On the day of the hearing, use deep breathing techniques to calm your nerves. Inhale slowly through your nose, hold for a few seconds, and exhale through your mouth. Repeat this several times to reduce anxiety. Positive affirmations can also help. Remind yourself that you are well-prepared and capable of handling the situation.

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My boyfriend is of a complete different religion and caste as mine. We met at work. In my past i have had only one relationship in which i got cheated on....so was skeptical on dating again. Now its been 8 months in this new relationship where he convinced me to give a try. He's a gem of a person but now he is telling melive in the present i dont know about the future. I love you n want to date you but idk about the future if my family wants me with someone i may have to end this. What do i do i am so attached for he has given me all the love n care. Please help
Ans: Right now, you need to be honest with yourself about what you want. If you’re looking for a committed future and he’s unsure, it’s essential to recognize that this uncertainty may continue to cause you pain. If you choose to stay, prepare yourself for the possibility that his family might influence his decision, and it could end in heartbreak. On the other hand, if you feel that the love and care he’s giving you right now are worth the risk, then decide to cherish the present moment while being mentally prepared for whatever may come.

Have an open and heartfelt conversation with him. Let him know how his uncertainty makes you feel, without pressuring him for a commitment. This isn’t about forcing him to decide but about understanding each other’s emotional needs and boundaries. If he truly values the relationship, this conversation might give him a deeper perspective on how his indecision affects you.

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My wife 55 is unable to cope up with death of our elder son aged 27 around 2 yrs ago and is always in deep regress remorse uninterested in any daily chores including sex. I wish to move on .. Suggest way out...
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Hey, I am a freelance graphic designer based in Mumbai. I’m 40 and I've recently transitioned from a full-time job to freelancing, and I’m struggling to understand how to manage taxes on my variable income. My annual earnings are 8-15LPA approx. Are there any deductions specific to freelancers? Also, how should I plan for quarterly tax payments?
Ans: hi,
for this particular financial year you will be taxed under 2 heads ,1st under salaries for the period you were in job & for remaining part you will be taxed as business income being started freelancing work.

And for freelancers there is no any specific dedutions however all deductions available to all others are available to freelancers like 80C to 80G.

For calculation of taxation of freelancing period you should record all your receipts & expenses (only related to work, no any personal expenses) details with proper documentary evidences specially for expenses part, net of the (receipts & expenses) will be your income however you can opt for presumptive taxation also.

For Advance payment :-
if tax applicable to you during the finanical year as per calculations exceeds Rs 10000, then your have to pay advance tax quarterly as below
on or before 15th june :- minimum 15% or more of tax amount.
on or before 15th september :- minimum 45% or more of tax amount.
on or before 15th December :- minimum 75% or more of tax amount.
on or before 15th March :- full 100% tax payable as per calculations.
Happy to help.
Thanks.

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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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