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Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 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 - May 19, 2024Hindi
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Sir nmste ,i am 30 years i am new and not knowledge mutual fund market etc.i can invest 10 k per month .my goal is 20 years 1 cr i want take risk 50 percent.of my invest and sir if i invest 10 years for 10k per month goal is 1cr risk take 50 percent can is possible. Sir

Ans: Setting Financial Goals

Namaste,

I appreciate your interest in investing and your ambition to build wealth for the future. It's a commendable step towards securing your financial well-being.

Understanding Your Goals

At 30, aiming for a target of ?1 crore in 20 years with a monthly investment of ?10,000 is an ambitious yet achievable goal. Your willingness to take on a 50% risk indicates your readiness to explore growth-oriented investment avenues.

Assessing Feasibility

Achieving a target of ?1 crore in 20 years with a monthly investment of ?10,000 requires a disciplined approach and strategic investment planning. With a 50% risk tolerance, you have the potential to explore growth-oriented investment avenues that offer higher returns over the long term.

Analyzing Investment Period

Investing ?10,000 per month for 10 years with a goal of ?1 crore involves higher risk-taking, given the shorter investment horizon. However, it's still achievable with a well-structured investment strategy and consistent monitoring.

Mitigating Risks

Given your willingness to take on a 50% risk, it's essential to diversify your investment portfolio across different asset classes such as equity, debt, and hybrid funds. This approach helps in mitigating risks and optimizing returns over the long term.

Recommendation

As a Certified Financial Planner, I recommend the following steps:

Start Early: Begin investing as soon as possible to benefit from the power of compounding.

Diversify: Allocate your investments across various mutual fund categories based on your risk tolerance and investment horizon.

Regular Review: Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk profile.

Final Words

Your goal of achieving ?1 crore in 20 years with a monthly investment of ?10,000 is achievable with a disciplined investment approach and prudent financial planning. By staying committed to your investment strategy and adapting to market dynamics, you can realize your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
Asked on - May 23, 2024 | Answered on May 24, 2024
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Sir tell me which fund should be invest pls give me 5 fund
Ans: For a well-rounded investment portfolio, consider allocating funds across different categories:

Large Cap Equity Fund: Offers stability and growth potential by investing in established companies.
Mid Cap Equity Fund: Provides exposure to mid-sized companies with higher growth potential.
Flexi Cap Equity Fund: Offers flexibility to invest across market capitalizations based on market conditions.
Balanced Advantage Fund: Balances equity and debt exposure dynamically to manage risk and returns.
Liquid Fund: Provides stability and liquidity for short-term needs with relatively lower risk.

Diversifying across these funds can help achieve your financial goals while managing risk effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

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Maam pls suggest me 5or 6 mutual fund which i can do invest long time 12 to 20 years .my capacity is 10k per months i will take 50 percent risk if i take 100 percent risk can do this same in 10 years my goal is 1 cr
Ans: It’s great to see your commitment to securing your financial future. Let’s explore how you can achieve your goal of Rs. 1 crore by investing Rs. 10,000 per month.

Understanding Your Investment Horizon and Risk Appetite
You have a long-term investment horizon of 12 to 20 years. This gives you the advantage of time, allowing your investments to grow and compound. With a willingness to take up to 50% risk, you can consider a mix of equity and hybrid funds. If you are comfortable with 100% risk, you can focus more on equity funds.

Importance of Diversification
Diversification is key to managing risk while aiming for high returns. By spreading investments across various mutual funds, you reduce the impact of poor performance in any single fund. This approach enhances the stability of your portfolio.

Benefits of Actively Managed Funds
Actively managed funds have professional fund managers who make strategic decisions. They aim to outperform the market by selecting high-potential stocks. This active management can provide better returns compared to passive funds, especially over long periods.

Potential Mutual Fund Categories for Your Portfolio
1. Large-Cap Funds
Large-cap funds invest in well-established companies with a large market capitalization. These funds are relatively stable and can provide steady returns. They are less volatile compared to mid-cap and small-cap funds, making them suitable for moderate risk tolerance.

2. Mid-Cap Funds
Mid-cap funds invest in medium-sized companies that have high growth potential. These funds are riskier than large-cap funds but can offer higher returns. For an investor with a 50% risk appetite, mid-cap funds can be a good choice.

3. Small-Cap Funds
Small-cap funds invest in smaller companies with significant growth prospects. These funds are more volatile but can provide substantial returns. If you are willing to take 100% risk, including small-cap funds in your portfolio can be beneficial.

4. Multi-Cap Funds
Multi-cap funds invest across companies of various sizes and sectors. They offer a balanced approach by combining large-cap stability with mid-cap and small-cap growth. This diversification within the fund itself reduces risk and enhances returns.

5. Hybrid Funds
Hybrid funds invest in a mix of equity and debt instruments. They provide exposure to the growth potential of equities while offering the stability of debt. For investors with moderate risk tolerance, hybrid funds can be a safe yet profitable option.

Regular Monitoring and Rebalancing
Investing in mutual funds requires regular monitoring. Rebalance your portfolio periodically to maintain the desired asset allocation. This ensures your investments remain aligned with your risk tolerance and financial goals.

Advantages of Investing Through a Certified Financial Planner
A Certified Financial Planner (CFP) can help you select suitable mutual funds. They provide expert advice and personalized strategies based on your financial situation. Investing through a Mutual Fund Distributor (MFD) with CFP credentials ensures professional management of your investments.

Disadvantages of Direct Funds
Direct funds require investors to make all decisions independently. Without professional guidance, it can be challenging to choose the right funds and manage the portfolio. Regular funds, advised by a CFP, offer better management and informed decision-making.

SIPs: A Disciplined Investment Approach
Systematic Investment Plans (SIPs) are an excellent way to invest regularly. They help inculcate a disciplined investment habit. SIPs allow you to invest small amounts consistently, reducing the impact of market volatility.

Evaluating Fund Performance
When selecting mutual funds, consider their historical performance. Look for funds with a consistent track record of outperforming their benchmarks. Evaluate the fund manager’s expertise and the fund’s expense ratio to ensure efficient management.

Importance of Patience and Long-Term Perspective
Long-term investments require patience and a steady approach. Market fluctuations are normal, but staying invested allows your money to grow. The power of compounding works best over extended periods, helping you achieve your financial goals.

Conclusion
With a disciplined investment strategy and the right mix of mutual funds, you can achieve your goal of Rs. 1 crore. Diversify your portfolio, monitor regularly, and seek professional guidance from a Certified Financial Planner. This approach will help you balance risk and returns effectively, ensuring a secure financial future for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 2024

Asked by Anonymous - Jun 20, 2024Hindi
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Hello sir i am 26years old unmarried I have invested 45 lkhs in mutual fund And planninh to invest 5 lkhs more in this month And monthly investment is 50000 per month I want to retire at 45 with 25 cr I am planning to invest till 60 lkhs then stop it is it possible?
Ans: you have an impressive start to your investment journey. At 26 years old, you have invested Rs 45 lakhs in mutual funds and plan to add Rs 5 lakhs more this month. Additionally, you are investing Rs 50,000 per month. You aim to retire at 45 with Rs 25 crores and plan to stop investing after reaching Rs 60 lakhs. Let's analyse your goals and the feasibility of achieving them.

Commendable Investment Strategy

Firstly, congratulations on your disciplined approach to investing. Starting early and investing regularly puts you in a strong position. Your current investments reflect a good understanding of financial planning.

Evaluating Your Retirement Goal

To retire at 45 with Rs 25 crores is an ambitious goal. You have around 19 years to achieve this. The key factors to consider are:

Current investments
Monthly contributions
Expected returns on investments
Time horizon
Current Investments and Future Plans

You have already invested Rs 45 lakhs and will add Rs 5 lakhs, making it Rs 50 lakhs. Your plan to continue investing Rs 50,000 per month until you reach Rs 60 lakhs is a sound strategy. Let's break down the future steps.

Monthly Contributions and Growth Potential

Continuing to invest Rs 50,000 per month will significantly boost your corpus. This disciplined approach will help you achieve substantial growth over time. However, stopping at Rs 60 lakhs might not be sufficient to reach your retirement goal of Rs 25 crores.

Advantages of Actively Managed Funds

Actively managed funds offer the potential for higher returns compared to index funds. Professional fund managers make informed decisions to maximize returns. This strategy aligns with your goal of achieving significant growth.

Disadvantages of Index Funds

Index funds simply track the market and lack flexibility. They may underperform during volatile periods. Actively managed funds can adapt to market conditions and potentially provide better returns.

Regular Funds vs. Direct Funds

Direct funds have lower expense ratios but require more time and expertise. Investing through a Certified Financial Planner (CFP) offers professional guidance and ongoing support. This helps in making informed decisions and managing your portfolio efficiently.

The Power of Compounding

One of the key elements in achieving your financial goal is the power of compounding. The longer your money remains invested, the greater the compounding effect. Starting early and maintaining regular investments enhances the compounding benefits.

Assessing Risk Tolerance

Given your long-term goal, investing in equity mutual funds is advisable. Equities have the potential for higher returns but come with higher risks. Assess your risk tolerance and ensure your investments align with your comfort level.

Diversification for Risk Management

Diversification spreads risk across different asset classes. While focusing on mutual funds, ensure a mix of large-cap, mid-cap, and small-cap funds. This strategy helps in managing risk and optimizing returns.

Professional Guidance

Certified Financial Planners provide tailored advice based on your goals and risk profile. They help in aligning your investments with your financial objectives and managing risks effectively.

Tax Implications

Consider the tax implications of your investments. Long-term capital gains tax on mutual funds and tax benefits from specific investment instruments should be factored in. Consulting with a tax advisor can help in optimal tax planning.

Emergency Fund

Ensure you have an emergency fund covering at least 6-12 months of expenses. This provides a financial cushion for unexpected events and helps maintain your investment strategy without disruptions.

Insurance Needs

Adequate insurance coverage is essential. Review your life and health insurance policies to ensure they meet your needs. Insurance provides financial security in case of unforeseen events.

Regular Portfolio Review

Regularly review your portfolio to ensure it remains aligned with your goals. Market conditions and personal circumstances change over time. Periodic reviews and adjustments are crucial for effective financial planning.

Emotional Discipline in Investing

Emotional discipline is vital in investing. Market fluctuations can trigger fear or greed. Stick to your investment plan and avoid impulsive decisions based on short-term market movements.

Retirement Corpus Estimation

Achieving Rs 25 crores by 45 requires a well-planned strategy. While it’s ambitious, regular investments, high returns, and the power of compounding can help. Reviewing and adjusting your plan periodically with a CFP ensures you stay on track.

Long-Term Investment Horizon

Maintaining a long-term investment horizon is key. Avoid withdrawing from your investments prematurely. Let your investments grow and benefit from compounding over time.

Investing Beyond Rs 60 Lakhs

While stopping at Rs 60 lakhs is a milestone, consider continuing your monthly SIPs if possible. Even small contributions over a longer period significantly impact your retirement corpus.

Understanding Market Conditions

Market conditions influence investment returns. While equities are volatile, they offer high returns over the long term. Understanding market trends helps in making informed investment decisions.

Rebalancing Your Portfolio

Rebalancing involves adjusting your portfolio to maintain the desired asset allocation. Regular reviews and rebalancing ensure your portfolio remains aligned with your risk tolerance and financial goals.

The Role of Asset Allocation

Asset allocation determines the mix of equities, debt, and other assets in your portfolio. A well-balanced allocation aligns with your risk profile and financial objectives, optimizing returns.

Impact of Economic Factors

Economic factors like inflation, interest rates, and GDP growth affect market performance. Consider these factors when planning your investments and adjusting your strategy.

Final Insights

Your disciplined investment approach and early start put you in a strong position. Continue your SIPs and consider investing beyond Rs 60 lakhs if possible. Actively managed funds offer potential for higher returns and professional management. Regular reviews and professional guidance are crucial.

Achieving Rs 25 crores by 45 is ambitious but possible with a well-planned strategy. Stay disciplined, review your portfolio regularly, and seek professional advice. With the right approach, you can achieve your retirement goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Milind

Milind Vadjikar  |693 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 26, 2024

Asked by Anonymous - Nov 26, 2024Hindi
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I took home loan from HDFC of 10 years duration in May 2023. I told them that i will be able repay the loan in few months as i was planning to sell one plot of mine. Bank employee offered insurance on home loan with return of premium scheme telling me that as soon as you repay the loan all of the premium will be returned. I was old customer so i trusted her and took insurance. Later i came to know that no refund on that policy if you surrender in one year and 60 percent deduction after 02 years. My mistake that i overlooked freelook peroid and rate of return of premium in the documents. I have repaid my whole loan and woll be completing my policy tenure of 02 years in Apr 2025. What should i do to get maximum return of the premium and should i appeal to the higher authorities about the lie told by the employee or i accept the return and sit and regret my decision? Need your valuable advice
Ans: Hello;

You may register a grievance with ombudsman of the lender stating the facts of the matter clearly.

It is upto the discretion of lender's grievance management leadership to take appropriate view of this matter and decide suitably.

Because legally it will always boil down to, you have signed up for the policy after going through all the terms and conditions and also didn't reckon that anything is wrong during the free look up period so no discussion unless you manage to get a video clip of your conversation with the bank employee, which I believe is almost impossible.

Best wishes;

...Read more

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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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