Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |7204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 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
Hemant Question by Hemant on Sep 12, 2023Hindi
Listen
Money

Good after noon My Self Hemant Pal, age is 42 years. I am investing Rs 4000/M in DSP Small cap for last 8 years. I would like to invest more with horizon of 7 -15 years ( Two Kids, with the Daughter’s age 7 and son’s age 9 years). 8 years duration : for Son’s education purpose (approx. 50 lacs) 10 years: for Daughter’s education purpose (approx. 50 lacs) 14-15 years: for Marriage of both kids ( approx. 50 lacs each) Kindly advice for suitable MF.

Ans: Hemant, it's commendable that you're planning ahead for your children's education and marriage. Given your investment horizon of 7 to 15 years, here's a tailored suggestion:

Equity Mutual Funds for Long-Term Growth: Since you already have experience investing in DSP Small Cap, you may consider continuing with it for your son's education goal. For your daughter's education and both kids' marriage goals, you can diversify into a mix of large-cap, multi-cap, and balanced funds for stability and growth potential.
Large-Cap Funds: These funds invest in established companies with a proven track record. They offer stability and are suitable for long-term goals like education and marriage. Consider allocating a portion of your investment to large-cap funds to balance risk.
Multi-Cap Funds: These funds invest across companies of different market capitalizations, offering diversification and potential for higher returns. They are suitable for longer investment horizons and can help you achieve your goals over time.
Balanced Funds: Also known as hybrid funds, these invest in a mix of equity and debt instruments, providing a balanced approach to risk and return. They can be ideal for medium to long-term goals like education and marriage.
Regular Review and Rebalancing: Periodically review your investment portfolio to ensure it remains aligned with your goals and risk tolerance. Rebalance your portfolio if necessary to maintain the desired asset allocation.
Remember to consider factors like risk tolerance, investment horizon, and financial goals when selecting mutual funds. It's also advisable to consult with a certified financial planner for personalized advice based on your specific circumstances.
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 04, 2024Hindi
Listen
Money
Age: 44years. Please suggest a MF which works best for retirement, child's education and long term capital appreciation. I could invest lumpsum Rs 100000/
Ans: Planning for Your Future: Retirement, Education & Growth
At 44, you're making a smart move by planning for your future goals: retirement, child's education, and long-term wealth creation. A single mutual fund might not be the best fit for all these needs, but let's explore some options:

Diversification is Key

Since your goals have different time horizons (retirement is farther away than your child's education), it's wise to diversify your investments. This means spreading your money across different asset classes to manage risk.

Actively Managed Funds for Growth

Given your long-term perspective and willingness to take on some risk, actively managed funds can be a good option. Here's why:

Outperforming the Market: Actively managed funds have fund managers who try to pick promising stocks and beat the market average. This has the potential for higher returns compared to passively managed options like index funds.
Matching Risk to Goals

Here's a possible approach to consider, but remember, this is general advice:

Retirement (Long Term): Invest a larger portion (say 60-70%) in aggressive actively managed funds like multi-cap funds. These invest in a mix of large, mid, and small-cap companies, offering growth potential along with diversification.

Child's Education (Mid Term): Allocate a mid-range portion (say 20-30%) to a balanced actively managed fund. These funds balance between equity and debt, offering some growth potential with a lower risk profile compared to aggressive funds.

Remember, your situation is unique. A Certified Financial Planner (CFP) can help you create a personalized asset allocation plan based on your risk tolerance and specific goals.

Rs. 1 Lakh Lump Sum Investment

A lump sum investment of Rs. 1 lakh can be a great way to jumpstart your investment journey. Consider investing across different actively managed funds based on your asset allocation plan.

Regular Investment (SIP) is Powerful

Don't stop with the lump sum! Regular investments (SIPs) can be a powerful tool for long-term wealth creation. Even a small amount invested regularly can benefit from rupee-cost averaging, where you purchase more units when the price is low and fewer units when the price is high.

A CFP Can Help You:

Choose the Right Funds: They can recommend actively managed funds with a good track record and experienced fund managers.

Asset Allocation: They can advise on the right mix of asset classes (multi-cap, balanced, etc.) for your goals.

Review and Rebalance: A CFP will monitor your progress and adjust your asset allocation as needed to stay on track.

Taking Charge of Your Tomorrow

By planning and investing for your future, you're taking control of your tomorrow. Actively managed funds within a diversified portfolio can be a powerful tool for growth, but remember, they also carry risk. A CFP can help you navigate your options and make informed investment decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1089 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 04, 2024

Listen
Career
sir i am going to give my pcb board examinations cbse in 2025 and i will also be writing neet in 2025 . here are some questions :- 1. if i take a drop and start preparing for jee mains instead of neet by adding maths to my subjects , which will be a better option among these ? a) writing the on demand exam for maths from nios and if i do so what should information has to be given in jee mains form because i have previously given neet through nta b) writing the public exams for all five subjects pcm from nios.then what should be written in jee main form c) giving a maths exam from cbse as aprivate candidate . and will two marksheets one including maths and one including pcb affect my jee form and counseling do 2 marksheets make a propblem in counselling or filling form and if not what should be entered in form for marksheets of 2 different years or boards 2. if i have maths from nios which board do i have to enter in jee mains form ? i am very confused , please help
Ans: Hello Baqir.
It seems that you are very confused. As you said, you have already appeared for NEET i.e. this is your drop year. Yet you are not confident about NEET 2025. If you have taken NEET previously, then how again you are appearing for the board exam is also not clear. If you have already given NEET and are preparing for NEET again, then why you are thinking about JEE without any reason is also unclear. You have created a lot of problems in your mind without any reason. This is because you are not focussing on the syllabus and studies but rather thinking in an irrelevant direction. The question arises, why not you are appearing with mathematics on the CBSE board? It is suggested that you appear to NEET 2025 with full preparation. If you score less also, then there are many courses in the medical field in which you can get admission. Leave all worries, thoughts, and no mark sheets, JEE issues and focus only on NEET 2025. It is also suggested that you please meet face to face a counselor to understand you more and guide you properly.
If satisfied with my reply, pl like and follow me.
Thanks
Radheshyam

...Read more

Ramalingam

Ramalingam Kalirajan  |7204 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 04, 2024

Asked by Anonymous - Dec 04, 2024Hindi
Listen
Money
I m 44 looking for retirement at 50 current portfolio 1 cr in mf ,1 cr in pms , 20 lac in ppf ,60 lac in fd and have one real estate asset of 2cr which i will sell in next 6 years and settle at home loan of 65 lac Please suggest strategy for future expense on 2 lac per month
Ans: Your portfolio showcases disciplined investments:

Rs. 1 crore in mutual funds.

Rs. 1 crore in PMS.

Rs. 20 lakh in PPF.

Rs. 60 lakh in fixed deposits.

A real estate asset worth Rs. 2 crore to be sold in 6 years.

A home loan liability of Rs. 65 lakh.

You aim for Rs. 2 lakh monthly expenses post-retirement at 50.

This diversified portfolio indicates a strong foundation. Let us optimise it for sustained income and financial stability.

Key Priorities
Generating a stable income post-retirement.

Protecting against inflation and rising costs.

Ensuring liquidity and tax efficiency.

Preparing for contingencies, such as medical expenses.

Strategy for Future Expenses
Step 1: Use Real Estate Sale Proceeds Strategically
Selling the property in six years will generate Rs. 2 crore.

Pay off the home loan of Rs. 65 lakh to become debt-free.

Invest the remaining Rs. 1.35 crore in instruments providing monthly cash flow.

Consider options like SWPs from mutual funds and balanced allocation.

Step 2: Strengthen Mutual Fund Investments
Diversify across large-cap, mid-cap, and balanced advantage categories.

Continue holding actively managed funds for long-term growth.

Use a Certified Financial Planner (CFP) for advice on optimising fund selection.

Prioritise regular funds through an MFD with CFP credentials over direct plans.

Step 3: Redeploy PMS Investments
Evaluate the performance of your PMS portfolio.

PMS often has high fees and limited flexibility.

Move funds to mutual funds for better cost efficiency and liquidity.

Allocate to equity mutual funds for higher long-term growth potential.

Step 4: Optimise PPF and Fixed Deposit Holdings
Continue PPF contributions for tax-free, stable returns.

PPF is a low-risk asset and complements equity investments.

Fixed deposits should be reduced to avoid overexposure to low-yield instruments.

Reinvest part of the FD corpus into debt mutual funds for better returns and tax efficiency.

Step 5: Create an Emergency Fund
Set aside Rs. 10-12 lakh as an emergency fund.

Use a mix of liquid funds and high-interest savings accounts for this purpose.

This fund should cover unexpected expenses like medical emergencies or sudden repairs.

Step 6: Plan for Retirement Income
Invest in a systematic withdrawal plan (SWP) for steady income.

Use Rs. 2 crore from mutual funds and PMS, allocating for growth and stability.

Ensure a mix of equity and debt for inflation-adjusted returns.

Focus on capital preservation while generating income.

Addressing Inflation
Inflation will erode Rs. 2 lakh’s purchasing power over time.

Invest in equity and balanced funds for long-term growth.

Review investments every year to rebalance based on inflation trends.

Tax Efficiency
Mutual fund capital gains attract taxes as per the new rules.

Equity mutual funds: LTCG above Rs. 1.25 lakh taxed at 12.5%.

Debt mutual funds taxed as per your income tax slab.

PPF is tax-free and should remain untouched till maturity.

Strategise withdrawals to minimise tax liability.

Healthcare and Insurance Planning
Assess your existing health insurance.

Upgrade your coverage if needed, keeping future medical inflation in mind.

Build a dedicated healthcare corpus.

Consider critical illness coverage for additional protection.

Retirement Lifestyle Adjustments
Maintain a lifestyle matching your retirement income.

Control discretionary spending to extend the portfolio's longevity.

Track expenses and ensure spending stays within the planned budget.

Final Insights
Your existing portfolio reflects strong savings discipline.

Focus on reallocating low-return assets to higher-yield investments.

Plan withdrawals and investments for tax efficiency and inflation protection.

Regular reviews with a Certified Financial Planner will ensure alignment with goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Prof Suvasish

Prof Suvasish Mukhopadhyay  |229 Answers  |Ask -

Career Counsellor - Answered on Dec 04, 2024

Asked by Anonymous - Dec 03, 2024Hindi
Listen
Career
Hello sir /madam Kindly advice for my son who has completed Btech with specialization in big data from SRM University with 8.1 cgpa in 2023 Last year in jan 2023 he did 1 internship for 3 months in cognizant which was through college placement, but they didn't call him for regular job after completion of internship though it was internship leading to placement program Then he was also selected in tcs ninja program through college placement itself and they provided him ilp training in trivandrum for 2.5 months but he couldn't clear their PRA test and was asked to resign from the company Ever since he has passed his graduation, he has been trying to get offcampus placement also but somehow he doesn't get selected Sometimes he is out after GD round ,sometimes after 1 or 2 rounds ,he doesn't get any answer from the concerned company Hence he is unemployed till now I am worried about his career, can you please guide as to what should he do to get placed soon Thanks
Ans: I think repeated failure enhanced his stress level and second thing is 24 X7 discussion about placement in home. Let him relax for seven days. You and other family members don't discuss about his placement hence onward. Let him improve his communication skill and see the style of giving a good interview from you tube videos. The most important thing is let him appear for the next interview very boldly with zero hope. That zero hope and boldness will bring a positive result. Apart from REDIFF GURU I do global counselling through social media. So be rest assured this medicine will work. Best of luck to your son. Just follow me. GOD BLESS HIM. Professor..................................:)

...Read more

Prof Suvasish

Prof Suvasish Mukhopadhyay  |229 Answers  |Ask -

Career Counsellor - Answered on Dec 04, 2024

Asked by Anonymous - Nov 24, 2024Hindi
Listen
Career
My daughter Passed out 9.5gpa and was offered job with TCS and Tech Mahindra almost few weeks apart from each other in the month of July end 2024 and offer was given for TCS in July first week and Tch Mahendra in end July,but tech Mahindra followed up with Joining letter immediately,but my daughter choosed TCS it has been three months since but no Joining letter received,2weeks back was asked to attend an exam which she undertook ,why so much delay by TCS? Was it a wrong decision to let go off Tech Mahindra?Pls reply also suggest what to do now? should we wait or look out elsewhere?
Ans: Yes. Certainly it was a wrong decision. A bird in hand is worth than two birds in bush. She must have accepted the offer of Tech Mahindra, After selection why TCS is again taking test? This is not ethical. But now if she approaches Tech Mahindra probably she won't get a response. So try elsewhere. Mind that DECISION DECIDES DESTINY. If your decision is wrong you are bound to fail. So no more lamenting over the spilt milk. In future take correct decision. Secondly her GPA is too high. Many times organizations don't select very high GPA candidates, because their stability becomes a question mark. Due to very high GPA they never become satisfied with any job. They always think they are underpaid and deserve more. Please keep one thing in mind once you join a job your GPA becomes dead, then your performance will decide your future prospects. Just follow me. Best of luck to her. GOD BLESS HER. Professor................:)

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x