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Ramalingam

Ramalingam Kalirajan  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 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 - Mar 12, 2023Hindi
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Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. Planning to buy a new apartment in Baroda of 70 lakhs in 5 years. I have a target net worth to reach of 5CR in 5years.

Ans: Given your financial situation and goals, here's a suggested approach:

Investment Allocation:

Allocate a portion of your savings towards SIPs in equity mutual funds for long-term wealth creation.
Since you have a target net worth of 5 crores in 5 years, consider a more aggressive allocation to equity funds.
SIP Selection:

Choose diversified equity funds with a proven track record of consistent performance.
Consider large-cap, multi-cap, and mid-cap funds to diversify across market segments.
Aim for a mix of growth-oriented and value-oriented funds to balance risk and return potential.
New SIPs and Investment Avenues:

Continue your current SIPs if they have been performing well and align with your risk tolerance and goals.
Consider adding new SIPs in well-managed funds with a focus on sectors or themes poised for growth.
Explore other investment avenues such as PPF, NPS, or direct stock investments to diversify your portfolio further.
Plan for Property Purchase:

Start a separate savings plan or investment portfolio specifically earmarked for the down payment on the new apartment.
Consider investing in relatively safer options like debt funds or fixed deposits for this short-term goal to minimize risk.
Regular Review and Adjustment:

Regularly review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance.
Adjust your SIP allocations and investment strategy as needed based on changes in market conditions, personal circumstances, and progress towards your goals.
Consult a Financial Advisor:

Given your ambitious target net worth and significant investment amount, consider consulting a financial advisor to tailor a comprehensive financial plan suited to your specific needs and objectives.
Remember to maintain a disciplined approach to investing, stay focused on your long-term goals, and avoid making impulsive decisions based on short-term market fluctuations.
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  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. I have a target net worth to reach of 5CR in 5years. I have 13 lakhs MF portfolio, and my running MF sip are 35k in quant active, 30k in parag parikh flexi cap,6k in DSP Nifty 50 equal wieght Index fund and 5k in nippon small cap.
Ans: It's great to see your proactive approach towards long-term financial planning. Given your income, expenses, and existing investments, here are some suggestions to help you achieve your target net worth of 5 crores in 5 years:

Increase SIP Contributions: Consider increasing your SIP contributions to align with your ambitious goal. You may also explore the option of stepping up SIP amounts annually to accelerate wealth accumulation.
Diversification: While your current SIPs are well-diversified, you can further enhance diversification by adding funds from different categories such as large-cap, mid-cap, and multi-cap funds. This helps spread risk and capture opportunities across market segments.
Explore Tax-Saving Investments: Utilize tax-saving investment avenues such as Equity Linked Savings Schemes (ELSS) to optimize tax benefits while building wealth. ELSS funds offer the twin benefits of tax savings under Section 80C of the Income Tax Act and potential capital appreciation.
Regular Review and Rebalancing: Regularly review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Consider rebalancing your portfolio periodically to maintain the desired asset allocation mix.
Emergency Fund: Ensure you have an adequate emergency fund set aside in a liquid instrument like a savings account or liquid mutual fund to cover unforeseen expenses without disrupting your investment portfolio.
Seek Professional Advice: Given the ambitious nature of your financial goal, consider consulting with a certified financial planner who can provide personalized advice tailored to your specific circumstances and objectives.
Remember, achieving a significant target like 5 crores in 5 years requires disciplined savings, strategic investing, and periodic reassessment of your financial plan. Stay focused on your long-term objectives and remain patient during market fluctuations.

..Read more

Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Sep 20, 2023

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Dear Sir, My name is Shrikanth S Kumar. My age is 38 and wife's age is 34. My total annual CTC is 16,10,000. My monthly expenses is 40 k. I have 15 lakhs in savings account which I can invest for Long term. Please suggest New SIPS or current good sips and investment avenues to continue. Started investing in equity sips from 5 years. I have a target net worth to reach of 5CR in 5years. I have 16 lakhs MF portfolio, and my running MF sip are 35k in quant active, 30k in parag parikh flexi cap,6k in DSP Nifty 50 equal wieght Index fund and 5k in nippon small cap.
Ans: It is good that you are investing a good amount per month with a saving/investment ratio of 50%. To reach your goal with current accumulated portfolio, available investment surplus (Rs 15 Lakh) and current SIPs, you need to make additional SIPs of 4.71 Lakh per month, (assuming 12% annualised return). Obviously, this is not possible given current income and cash flows. Going with the current status of investment, you will be able to accumulate 1.18 Cr by the end of 5th Year.

Your stated scenario of accumulating Rs 5 Cr is definitely very difficult to achieve, but here we will suggest a practical and logical approach toward investment. Do the step up SIPs, which means you should increase the investible surplus (SIPs) every year as your income grows say 10%. With this, you should be able to accumulate approx Rs 1.29 Cr (Assuming 12% ROI). This will reduce the deficit required. Apart from this any windfall amounts received at any time should be invested towards facilitating the goal.

Currently, your SIPs are concentrated in 2 funds which is not good. You should work on diversifying the monthly investment wisely among different categories and sectors, based on your goal requirements.

..Read more

Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Dec 25, 2023

Asked by Anonymous - Dec 20, 2023Hindi
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Hello Sir. I'm Ravinder Rao, 47 years old. I'm very interested in investing in stocks, shares, and SIPs. Sir, I don't have knowledge about these investments. Kindly suggest me. Accordingly, I will do so, sir. And I want to learn knowledge about SIP and stocks; kindly suggest me. Sir, every month my present savings of Rs 30000. Present me with Rs 500000 lakhs. And I'm very confused about this amount. With this amount, can I invest in RD, FD, and real estate in Sip or purchase shares? Sir, I request that you kindly advise me. Sip funds names and details
Ans: Investing in financial securities involves balancing potential gains with potential losses. These risks and rewards are two sides of the same coin. To recommend the best investment options, we need to understand your risk tolerance. It is suggested that you should analyze your risk appetite, investment time horizon, and goals before investing.

If you do not have much knowledge about the financial markets, we would advise you to consult a financial planner before investing in mutual funds, stocks or other assets class. We recommend that you do a Systematic Investment Plan (SIP) with your monthly savings. A SIP is a method of investing a fixed amount regularly in a mutual fund scheme.

The choice of a particular fund depends on the individual needs. Your requirements & goals should be carefully assessed before selecting the asset class for investments. Some other asset classes are equity, debt, gold, real estate, etc. which can be considered in your case.

..Read more

Ramalingam

Ramalingam Kalirajan  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 26, 2024

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Hi Kirtan, I am 55 Yrs. working in private company, with monthly income of 3.0 lacs. Current investments in SIP since 2018 are - (1)Aditya Birla Sun Life Frontline Equity Growth-4000/ month(2)HDFC Mid-Cap Opportunities Fund - Growth- 4000/ month (3)ICICI PRu Value discovery G - 4000/- (4)UTI Transportation & Logistics G- 4000/ month(5) From 2023 : 1)SBI Contra direct Plan Growth - 10000/month (2)Canara Rebeco small cap fund direct growth - 10000/month. Would like to achieve for retirement corpus of 2 crore- Kindly review my investments , and suggest if any modifications required. I have other investments in FD- 50 lac, can take risk for till retirement Raj
Ans: Dear Raj,

It's commendable to see your proactive approach towards retirement planning. With a monthly income of 3.0 lacs and systematic investment plans (SIPs) since 2018, you've laid a foundation for your retirement corpus.

Let's review your current portfolio and provide some insights:

Equity Funds (SIPs since 2018):

Aditya Birla Sun Life Frontline Equity, HDFC Mid-Cap Opportunities, ICICI Pru Value Discovery, UTI Transportation & Logistics: These funds offer a diversified exposure across large-cap, mid-cap, and sector-specific themes. Ensure the funds align with your risk tolerance and investment horizon. Periodically review their performance and adjust if necessary.
New SIPs from 2023:

SBI Contra and Canara Robeco Small Cap Fund: SBI Contra focuses on undervalued stocks, and Canara Robeco Small Cap Fund aims for growth in small-cap companies. Given your existing SIPs, these funds could add a layer of diversification. However, small-cap funds tend to be more volatile; ensure they align with your risk appetite.
Fixed Deposits (FD):
Your FDs amounting to 50 lacs offer stability to your portfolio. While FDs provide security, the returns might not beat inflation over the long term. Consider gradually shifting a portion to equity mutual funds to potentially enhance returns, given your risk appetite.

Retirement Corpus:
To achieve a retirement corpus of 2 crore, ensure your investments are aligned with your retirement goals. Consider increasing SIP amounts periodically, taking advantage of compounding. Also, consider adding debt or balanced funds to reduce overall portfolio volatility as retirement approaches.

Suggestions:

Review & Rebalance: Periodically review your portfolio's performance and asset allocation. Rebalance if necessary to align with your retirement goals.
Diversification: Explore adding international funds or sector-specific funds to diversify further.
Tax Efficiency: Consider ELSS funds for tax-saving while aligning with retirement goals.
Given the complexities of retirement planning, consulting with a Certified Financial Planner can offer personalized guidance tailored to your retirement aspirations.

Your dedication to retirement planning is commendable, and with strategic planning, you're on the right path towards achieving your retirement goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |5092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - Apr 22, 2024Hindi
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Hi Sir, Im 36 have 4.5 year old daughter and wife (home maker) i'm earning 1.40 lac monthly have a expanses of 70k including rent, daughter fee (UKG) and car loan. My investment: LIC - 70000 yearly 2037 maturity Lic 90000 yearly (2057 maturity) Max life insurance 3.6lac yearly Daughter SSY- 1.5 lac yearly (since 4 year) SIP - 30000 (monthly) axis bluechip 5k, axis mid cap 5k, axis small cap 5k, icici large 5k, icici prudential mid cap 5k, icici small cap 3k, tata small cap 2k. I want to retire in next 15 years. Please help me if my investment is correct or i need to revisit my investment especially SIP. Or any other suggestions you can provide
Ans: You're demonstrating excellent foresight by planning for your future and your family's financial security. Here's an assessment of your current investments and some suggestions:
1. Retirement Planning:
• Your goal to retire in the next 15 years is ambitious and requires careful financial planning to ensure you achieve your desired lifestyle post-retirement.
• Consider factors such as your desired retirement age, anticipated expenses, inflation, healthcare costs, and potential sources of retirement income.
2. Investment Analysis:
• Your current investment portfolio consists of a mix of life insurance policies, Sukanya Samriddhi Yojana (SSY) for your daughter, and SIPs in various mutual funds.
• Life insurance policies provide financial protection but may have limited investment growth potential compared to other investment options.
3. SIP Review:
• Review your SIP portfolio to ensure alignment with your long-term financial goals, risk tolerance, and investment horizon.
• Consider diversifying across different asset classes and fund categories to spread risk and optimize returns.
• Evaluate the performance of individual funds regularly and make adjustments as needed.
4. Asset Allocation:
• Assess your overall asset allocation to ensure a balanced mix of equity, debt, and other investment instruments based on your risk profile and investment objectives.
• Consider increasing exposure to equity for long-term wealth accumulation, but maintain a diversified portfolio to mitigate risk.
5. Emergency Fund:
• Ensure you have an adequate emergency fund to cover unforeseen expenses and mitigate financial risks. Aim to maintain 6-12 months' worth of living expenses in a liquid savings account or short-term investments.
6. Professional Advice:
• Consider consulting with a Certified Financial Planner to conduct a comprehensive financial review and retirement planning assessment.
• They can provide personalized recommendations tailored to your specific circumstances, goals, and risk tolerance.
7. Regular Monitoring and Adjustment:
• Periodically review your investment portfolio and retirement plan to track progress towards your goals.
• Make adjustments as needed based on changes in income, expenses, market conditions, and personal circumstances.
In summary, while your current investments show prudent planning, it's essential to periodically reassess your financial strategy to ensure it remains aligned with your evolving goals and circumstances. By staying proactive and seeking professional guidance, you can optimize your investments and work towards achieving a comfortable retirement for yourself and your family.

..Read more

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Nayagam P

Nayagam P P  |2230 Answers  |Ask -

Career Counsellor - Answered on Jul 21, 2024

Asked by Anonymous - Jul 20, 2024Hindi
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Sir, i have completed my bachelors (BCA) in India in an engineering college and wishes to pursue my masters in a foreign country.My family is'nt well off so iam looking into schlorships.can you suggest some courses with good scope. Also which countries are best for IT field that provide great schlorship oppurtunities.
Ans: As far as Scholarships for Abroad Universities are concerned, you should have good scores from the entrance tests (whichever will be applicable according to the University's admission criteria), good past academic records, your extra and co-curricular activities, additional certifications, your Statement of Purpose (SOP), Letter of Recommendation etc. Those who have gained work experience of a minimum 2-3 years after graduation get preference in admission.

And most of the Universities do not provide 100% scholarships. You will have to bear some expenses (depends upon which University / College you get admission into & what all expenses only it will cover?) .

As you have mentioned that your parents NOT well-off financially, it is suggested to work for 2-3 years, earn some money and also gain work experience, then go for further education abroad.

Before approaching any Professional Abroad Education Consultant, do a thorough research about the Countries/Universities/Programs, shortlist those which you think will be most suitable, apply to 5-6 top Univerities offering Scholarships and finalize one best University/College for you.

All the BEST for Your Bright Future.

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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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