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

Sunil Lala  |203 Answers  |Ask -

Financial Planner - Answered on Jan 09, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Gururajarao Question by Gururajarao on Dec 29, 2023Hindi
Listen
Money

Hi i am Padmanabha from Mandya .Now i am 52 having a cash of 20 lacs in my savings bank account.Kindly suggest where i can invest for 6 months return.

Ans: 6 months is a too short period for investment, you can shift it in a fixed deposit with your bank
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  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 2024

Asked by Anonymous - Jan 25, 2024Hindi
Listen
Money
Hello Sir I am 22 year old and I can invest around Rs3000 per month with better job opportunity and time period I can increase my investment amount, I want to know where I can invest my savings every month for better returns, I can invest for next 30-35 years regularly for sure. Kindly guide me where and how to invest .
Ans: That's a fantastic start! Thinking about long-term investments at your age is a smart decision. Here are some options for where you can invest your Rs.3000 per month, considering a 30-35 year investment horizon:

Systematic Investment Plan (SIP) in Mutual Funds:

This is a popular option for regular investment with rupee-cost averaging. You invest a fixed amount each month, and the units are purchased based on the prevailing Net Asset Value (NAV).
Benefits:
Disciplined Investing: Encourages regular savings and avoids the need to time the market.
Rupee-Cost Averaging: Purchases more units when the NAV is low and fewer units when it's high, potentially balancing the overall cost per unit.
Long-Term Growth: Equity mutual funds have the potential for significant growth over the long term (typically 10+ years).
Investment Options:
Large-cap Funds: Invest in stocks of well-established companies with a proven track record.
Multi-cap Funds: Invest across companies of different market capitalizations (large, mid, and small).
Consider a mix of these based on your risk tolerance.
Here's how to get started with SIP in Mutual Funds:

Choose a SEBI-registered Mutual Fund Company (AMC): Research and compare different AMCs based on their performance and fund offerings.
Select a Suitable Mutual Fund Scheme: Consider your risk tolerance and investment goals.
Open an Investment Account: You can open an account with the AMC directly or through a broker/distributor.
Start your SIP: Set up a recurring transfer of Rs.3000 per month to your chosen SIP.
Additional Tips:

Increase Investment as Income Grows: As your income increases, consider raising your SIP amount to reach your financial goals faster.
Stay Invested for Long Term: Market fluctuations are normal. Don't panic and redeem your investments during downturns. A long-term horizon allows time for the market to recover and potentially generate good returns.
Review and Rebalance: Periodically review your portfolio performance (at least annually) and rebalance if needed to maintain your desired asset allocation.
Other Options to Consider:

Public Provident Fund (PPF): A government-backed scheme offering guaranteed returns and tax benefits. However, PPF has lower liquidity compared to mutual funds.
Employee Provident Fund (EPF): If you're salaried, your employer likely contributes to your EPF. This offers good long-term returns and tax benefits.
Remember:

I can't provide specific financial advice. Consulting a Certified Financial Planner (CFP) can be helpful, especially for a personalized investment plan considering your risk tolerance and goals.
Start with your research! Read about different investment options, mutual funds, and SIPs before making any decisions.
By starting early, investing regularly, and staying disciplined, you can build a significant corpus for your future over the next 30-35 years.

..Read more

Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 02, 2024

Asked by Anonymous - Jul 02, 2024Hindi
Money
Hello Sir, Iam 64 years old NRI, I have saving about 1 cr, please let me know where to invest safely
Ans: It’s great to see you thinking about safe investments for your savings. With Rs 1 crore to invest, let’s discuss a strategy that balances safety, growth, and income.


At 64, planning your investments carefully is crucial. Your focus on safety and returns is commendable. You deserve peace of mind and steady returns.

Understanding Your Financial Goals
Investment Amount:

Rs 1 crore
Objective:

Safety of principal
Regular income
Moderate growth
Time Horizon:

Medium to long-term
Types of Investments
Diversifying your investments will help achieve a balance between safety and returns. Here’s how you can allocate your Rs 1 crore:

1. Debt Mutual Funds
Overview:

Debt mutual funds invest in fixed-income securities like government and corporate bonds.
They provide regular income and are less volatile than equity funds.
Advantages:

Lower risk compared to equity funds.
Provides stability and steady returns.
Risks:

Interest rate risk: Value may decrease if interest rates rise.
Credit risk: Possibility of issuer default.
Recommended Allocation:

Allocate Rs 40 lakh to debt mutual funds.
Choose funds with a mix of high-quality corporate bonds and government securities.
2. Balanced or Hybrid Mutual Funds
Overview:

Hybrid funds invest in a mix of equity and debt.
They offer a balanced approach to investing, providing both growth and income.
Advantages:

Diversification across asset classes.
Potential for moderate growth with reduced risk.
Risks:

Market risk from equity component.
Interest rate and credit risks from debt component.
Recommended Allocation:

Allocate Rs 30 lakh to balanced or hybrid mutual funds.
This provides a balanced exposure to both equity and debt.
3. Monthly Income Plans (MIPs)
Overview:

MIPs are mutual funds that primarily invest in debt instruments but also have a small equity component.
They are designed to provide regular monthly income.
Advantages:

Regular monthly income.
Lower risk due to high debt component.
Risks:

Market risk from the equity component.
Interest rate and credit risks from debt component.
Recommended Allocation:

Allocate Rs 20 lakh to MIPs.
This ensures regular income with moderate growth potential.
4. Liquid Funds
Overview:

Liquid funds invest in short-term debt instruments.
They offer high liquidity and low risk, ideal for emergencies.
Advantages:

High liquidity.
Better returns than a savings account.
Risks:

Lower returns compared to other debt funds.
Interest rate risk.
Recommended Allocation:

Allocate Rs 10 lakh to liquid funds.
This ensures quick access to funds in case of emergencies.
Power of Compounding
The power of compounding is essential in long-term investing. By reinvesting your returns, your money grows exponentially over time.

Overview:

Compounding is earning returns on your initial investment and the returns generated.
The longer you stay invested, the more your money grows.
Advantages:

Exponential growth of wealth.
Maximizes long-term returns.
Example:

Investing in mutual funds and reinvesting the returns can significantly grow your corpus over time.
Avoiding High-Risk Investments
Given your priority on safety, avoiding high-risk investments is prudent.

Equity Exposure:

Limit equity exposure to reduce volatility.
Focus on funds with a higher debt component for stability.
Real Estate:

Real estate can be illiquid and high maintenance.
Focus on liquid and manageable investments.
Disadvantages of Index Funds
While index funds are popular, they have some drawbacks compared to actively managed funds.

Limited Flexibility:

Index funds mirror the market and cannot adapt to changing conditions.
Actively managed funds can adjust to market trends and opportunities.
No Outperformance:

Index funds aim to match the market, not outperform it.
Actively managed funds can potentially deliver higher returns.
Recommended Approach:

Prefer actively managed funds through a Certified Financial Planner for tailored advice and potential outperformance.
Disadvantages of Direct Funds
Direct funds might seem attractive due to lower expense ratios, but they come with their own challenges.

Lack of Guidance:

Direct funds require you to make all investment decisions.
Investing through a Certified Financial Planner provides expert advice and tailored strategies.
Time-Consuming:

Managing direct funds can be time-consuming and complex.
Professional guidance simplifies the process and ensures informed decisions.
Recommended Approach:

Invest through regular funds with guidance from a Certified Financial Planner.
Regular Monitoring and Rebalancing
Overview:

Regularly review your investment portfolio.
Rebalance your portfolio to maintain the desired asset allocation.
Advantages:

Keeps your investments aligned with your goals.
Reduces risk by maintaining diversification.
Recommended Actions:

Review your portfolio every six months.
Rebalance if any asset class deviates significantly from the desired allocation.
Tax Considerations for NRIs
Tax Implications:

Understand the tax implications of your investments.
Consult with a tax advisor for NRI-specific tax benefits and obligations.
Double Taxation Avoidance Agreement (DTAA):

Take advantage of DTAA between India and your resident country.
This helps avoid double taxation on your investment income.
Emergency Fund
Maintaining an emergency fund is crucial, especially at your age. Ensure it is accessible and sufficient for at least 6-12 months of expenses.

1. Liquid Funds
Overview:

Liquid funds invest in short-term debt instruments.
They offer quick access to funds with minimal risk.
Advantages:

High liquidity.
Better returns than a savings account.
Risks:

Lower returns compared to other debt funds.
Interest rate risk.
Recommended Allocation:

Keep a portion of your emergency fund in liquid funds.
This ensures quick access and better returns than a savings account.
Regular Income through SWP
A Systematic Withdrawal Plan (SWP) can provide regular income from your mutual fund investments.

Overview:

SWP allows you to withdraw a fixed amount regularly from your mutual fund investments.
It provides a steady cash flow.
Advantages:

Regular income while keeping your principal invested.
Flexibility to choose the withdrawal amount and frequency.
Risks:

Market risk: Value of investments can fluctuate.
Depleting principal if withdrawals exceed returns.
Recommended Allocation:

Set up an SWP for monthly income.
Withdraw a sustainable amount to ensure longevity of your investments.
Final Insights
By following this roadmap, you can effectively invest Rs 1 crore with a focus on safety and steady returns. Here’s a summary of the steps:

Debt Mutual Funds:

Allocate Rs 40 lakh.
Focus on high-quality corporate bonds and government securities.
Balanced or Hybrid Mutual Funds:

Allocate Rs 30 lakh.
Provides balanced exposure to equity and debt.
Monthly Income Plans (MIPs):

Allocate Rs 20 lakh.
Ensures regular income with moderate growth potential.
Liquid Funds:

Allocate Rs 10 lakh.
Ensures quick access to funds in case of emergencies.
Power of Compounding:

Reinvest returns to maximize long-term growth.
Avoid High-Risk Investments:

Limit equity exposure and avoid real estate.
Disadvantages of Index and Direct Funds:

Prefer actively managed funds with professional guidance.
Regular Monitoring and Rebalancing:

Review and adjust your portfolio every six months.
Tax Considerations for NRIs:

Understand tax implications and leverage DTAA benefits.
Emergency Fund:

Maintain liquidity and accessibility.
Regular Income through SWP:

Set up an SWP for steady monthly income.
By diversifying your investments and leveraging the power of compounding, you’ll be well on your way to achieving your financial goals with safety and stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Dr Nandita

Dr Nandita Palshetkar  |13 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Nov 26, 2024

Dr Nandita

Dr Nandita Palshetkar  |13 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Nov 26, 2024

Listen
Health
Hello mam, I am a girl 18years old I had pcod since my period started I got my period when I was 13years that time everything was ok but after few months I was bleeding heavy getting menses 2-3in a month so my mom got very worried and she takes me to a gynaecologist and she prescription and tablets like "novelon"and then I am ok but after that I didn't get my periods for few months and also that time lockdown happened so we can't go to a gynaecologist and then after everything got normal and hospitals we go to the doctor and she asked from how many time you don't get your menses and then I replied from past 6months and she shouted on me and immediately told me to have ultrasound and after seeing the reports she said you have pcod then the rest of the story you know I am still suffering from this disease I don't get my periods if I don't take the tablets now I can't understand what to do even I changed a lot of gynaecologists but nothing happened and they this is a incurable disease you have to take tablets for lifetime and also I am not even financially strong
Ans: Polycystic ovary syndrome (PCOS) is a hormonal condition that can cause irregular or absent menstrual periods.
Higher amounts of androgens in PCOS can interfere with egg development and ovulation, leading to skipped or absent periods.
One of the best ways to cope with PCOS is to maintain a healthy bodyweight, eat nutritious foods and exercise regularly.
LIFESTYLE CHANGES:
Eating healthy foods, exercising regularly, and maintaining a healthy weight can help regulate your menstrual cycle
BIRTH CONTROL PILLS:
Combination oral contraceptives (COCs) can help regulate menstrual periods and treat acne and hirsutism. It can take up to six months to see if birth control is effective.
ANTIESTROGENS:
These medicines can help with skin and hair growth problems
METFORMIN
This diabetes medicine can help control ovulation and androgen levels, which can make menstrual cycles more regular
Supplements containing
Myo ionositol, chirositol, vitamin D, chromium also helps in maintaining pco

...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