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Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Rahul Question by Rahul on Jan 02, 2024Hindi
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Money

Sir i have Parag Parikh Flexicap, Sbi Mid cap & Axis Small cap fund each with 5k total 15k per month sip for 25 year's and 10 percent step up every year I want 10 crores for my retirement, is this portfolio Good..? I am 33 year's old ????

Ans: Your portfolio seems well-diversified across different market segments, which is a good approach for long-term wealth accumulation. The Parag Parikh Flexicap Fund offers exposure to a mix of large, mid, and small-cap stocks, providing flexibility and stability. SBI Midcap Fund and Axis Small Cap Fund focus on mid and small-cap companies, respectively, aiming for higher growth potential. With a 25-year investment horizon and a 10% annual step-up, your disciplined approach can potentially help you achieve your ambitious retirement goal of 10 crores. However, ensure to regularly review and adjust your investments based on performance and changing market conditions.
Asked on - Apr 08, 2024 | Answered on Apr 08, 2024
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Thank you sir, do I need more funds to add in my portfolio if yes then which fund I should add to my portfolio..?
Ans: Adding more funds to your portfolio can further diversify your investments and potentially enhance returns. Consider adding the following funds to complement your existing portfolio:

Large-cap Fund: Since your current portfolio lacks exposure to large-cap stocks, consider adding a reputable large-cap fund to balance your allocation. Look for funds with a consistent track record of delivering stable returns over the long term.

International Fund: Adding an international fund can provide exposure to global markets and further diversify your portfolio geographically. Look for funds that invest in leading international companies across various sectors and regions.

Debt Fund: Including a debt fund can add stability to your portfolio and mitigate overall risk, especially during market downturns. Opt for high-quality debt funds with a focus on safety and liquidity.

Before adding any new funds, ensure they align with your investment objectives, risk tolerance, and overall asset allocation strategy. Additionally, regularly review your portfolio's performance and make adjustments as needed to stay on track towards your retirement goal.
Asked on - Apr 09, 2024 | Answered on Apr 09, 2024
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Thank you sir
Ans: Welcome
Asked on - Apr 11, 2024 | Answered on Apr 12, 2024
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Can you suggest me some funds to invest sir..?
Ans: I'd be happy to help guide you through the process of selecting investment funds, but I must emphasize the importance of considering your individual financial situation, goals, risk tolerance, and investment horizon before making any investment decisions. Without knowing your complete financial picture, including factors like your income, expenses, existing investments, and long-term goals, it's challenging to provide personalized recommendations that suit your needs.

Investing is not one-size-fits-all, and what works well for one person may not be suitable for another. Factors such as your age, financial goals (e.g., retirement, buying a house, education funding), risk tolerance, and investment timeframe all play a crucial role in determining the most appropriate investment strategy.

It's always wise to consult with a financial advisor who can assess your individual circumstances and provide personalized recommendations tailored to your specific needs and goals. A financial advisor can help you create a well-diversified investment portfolio that aligns with your risk tolerance and long-term objectives while taking into account various investment options such as mutual funds, exchange-traded funds (ETFs), stocks, bonds, and other asset classes.

By working with a financial advisor and taking the time to understand your investment options thoroughly, you can make informed decisions that are best suited to your financial situation and objectives, ultimately helping you to achieve your long-term financial goals.
Ramalingam, MBA, CFP
Chief Financial Planner at Holisticinvestment.in
Asked on - Apr 13, 2024 | Answered on Apr 15, 2024
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Thank you so much sir
Ans: Welcome Rahul :)
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  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 11, 2024

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Sir i have Parag Parikh Flexicap, Sbi Mid cap & Axis Small cap fund each with 5k total 15k per month sip for 25 year's and 10 percent step up every year I want 10 crores for my retirement, is this portfolio Good..? I am 33 year's old ????
Ans: It is great that you have a well-structured SIP plan in place for your retirement. Starting early gives you a significant advantage, as your investments will benefit from compounding over time. Your goal of accumulating Rs 10 crores by retirement at 33 years of age is both ambitious and achievable with the right strategy.

However, let us take a 360-degree view of your portfolio and evaluate it across multiple parameters.

1. Diversification of Portfolio
You have invested in Flexi-cap, Mid-cap, and Small-cap funds. This diversification across different market capitalizations is smart because:

Flexi-cap funds invest across all types of companies, ensuring flexibility in capturing growth from various sectors.

Mid-cap funds focus on companies that have significant growth potential, though they may carry higher volatility.

Small-cap funds are riskier but can yield high returns over a long horizon.

However, your portfolio seems tilted toward higher-risk categories (mid-cap and small-cap). Although it increases potential returns, the volatility could cause significant short-term fluctuations. You may want to ensure some allocation in large-cap funds, which offer stability. Large-cap funds perform well in market downturns, helping cushion your portfolio's overall risk.

Insight: Adding a large-cap component or hybrid funds could bring more balance and reduce volatility in market downturns.

2. SIP Step-Up Strategy
Your decision to step up SIP contributions by 10% each year is a solid plan to combat inflation and meet long-term goals. Stepping up ensures that you keep increasing investments as your income grows, which will be essential in reaching your Rs 10 crore target.

Insight: Continue increasing your SIPs consistently. Ensure that your step-up rate matches your income growth to keep pace with rising expenses.

3. Regular vs Direct Funds
You have mentioned your investments but not the type of funds—whether they are direct or regular. It is worth noting that direct funds come with lower expense ratios but require active monitoring.

If you are going through a Certified Financial Planner (CFP), it is better to opt for regular funds. A CFP can guide you based on market conditions and financial goals. They help optimize your returns while ensuring disciplined investing.

Insight: Direct funds may seem attractive with lower fees, but without professional advice, you could miss out on timely rebalancing. Regular funds, invested through a trusted CFP, ensure more personalized management of your portfolio.

4. Assessing 25-Year Horizon for Rs 10 Crores
Your portfolio's return will depend on the market performance over the long term, and the funds you have selected generally aim for higher growth. Historically, equity mutual funds, particularly small-cap and mid-cap funds, have offered high returns but with more volatility. While 10% step-up and 25 years of disciplined investing create strong prospects for achieving Rs 10 crores, you will need to:

Monitor performance periodically: Your funds need periodic rebalancing to align with market conditions. If any underperform, you may need to switch to better-performing funds.

Account for taxation: The Long Term Capital Gains (LTCG) tax on mutual funds is an important factor to consider. For equity mutual funds, LTCG above Rs 1.25 lakh is taxed at 12.5%, while Short Term Capital Gains (STCG) are taxed at 20%. As your portfolio grows, the tax liability will also increase.

Insight: Be aware of tax impacts on your withdrawals closer to retirement, and consider switching funds if needed to ensure optimal returns.

5. Consideration of Market Conditions
The performance of mid-cap and small-cap funds is heavily reliant on market conditions. In bull markets, these funds tend to outperform, while in bear markets, they can drop significantly.

Equity market volatility: Over 25 years, you will likely see both significant market booms and corrections. Having a strategy in place to weather market downturns is crucial.

Focus on consistent investing: Avoid timing the market or making impulsive changes during market corrections. Continue your SIPs during both bullish and bearish phases, as this will average out the buying price of your units.

Insight: Consider market downturns as opportunities to accumulate more units at lower prices through SIPs. Resist panic selling during corrections.

6. Flexibility and Adjustments Over Time
You have 25 years until retirement, which is a long horizon. In that time, your financial situation, risk tolerance, and market conditions will change. It is essential to:

Review and rebalance annually: At least once a year, review your portfolio with your CFP to ensure it aligns with your goals and adjust based on performance.

Reallocate closer to retirement: As you approach retirement, move some of your investments into safer assets (like large-cap funds or hybrid funds) to lock in the gains you have made and protect against volatility in the final years.

Insight: Flexibility in your financial plan is key. Revisit and adjust your portfolio regularly to ensure it continues to meet your long-term objectives.

7. Inflation Impact on Retirement Corpus
While Rs 10 crore seems like a large amount today, inflation will reduce its purchasing power by the time you retire. The expenses that Rs 10 crore can cover today will be far less 25 years later. Keep this in mind as you plan your target corpus.

Retirement income needs: You should calculate your future monthly expenses, keeping inflation in mind. If your goal is Rs 10 crore, assess whether that corpus will be enough to generate the monthly income you need in retirement.

Plan for inflation protection: As you age, inflation will continue to impact your purchasing power. Ensure part of your corpus is invested in assets that beat inflation.

Insight: Focus on inflation-adjusted returns rather than absolute numbers. Consider increasing your retirement target if inflation erodes purchasing power significantly.

8. Long-Term Wealth Creation Strategy
Building a Rs 10 crore corpus requires discipline, consistency, and strategic investing. A few additional points to consider:

Diversify across assets: Although equity mutual funds offer growth, you should ensure you have a broader asset mix to reduce risks.

Use goal-based investing: Allocate specific funds for retirement and avoid mixing it with other financial goals.

Emergency fund: Always maintain an emergency fund with 6-12 months' worth of expenses. This will ensure you do not have to break your SIPs in case of emergencies.

Insight: Stick to long-term wealth creation by being consistent with your SIPs, managing risks, and ensuring a clear focus on your retirement goals.

Final Insights
Your portfolio is well-thought-out, with a strong SIP strategy that can lead to substantial wealth creation over 25 years. With regular reviews, a focus on diversification, and disciplined investing, you are on track to achieve your Rs 10 crore retirement corpus.

However, consider adding a large-cap component for stability, and review your risk tolerance as you move closer to retirement. Keep in mind the impact of inflation, taxation, and the need for flexibility in your portfolio.

Stay committed to your SIPs, but also ensure you are periodically revisiting your strategy with the help of a Certified Financial Planner to stay aligned with your long-term objectives.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

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Hello Sir. My Son has got offer from follwing University.. 1)University of Padua - Italy (BSC - Information Technology) - 3 years Course 2)University Of Strathclyde - UK (BSC - HON Computer Science) - 4 yrs 3)Caledonian University of Glassgow - UK (Bsc Hons Computing). 4 yrs 4) National College of Ireland (BSC - HON Computer Science Engg) - 4 yrs We are confused to select the university / country
Ans: Hello ASAD,

First and foremost, thank you for getting in touch with us. I am glad to know that your son has received offers from the above mentioned universities. As an answer to your query, I would like to tell you that a prestigious and budget-friendly education in a lively Italian environment, along with a reputable academic standing and lower living expenses is offered at the University of Padua; its 3-year BSC - Information Technology may also provide a quicker path to higher education or jobs. Coming to the University of Strathclyde, top-ranked in the UK for Computer Science, this university is renowned for its linkages with industry, research possibilities, as well as outstanding student services, offering robust employment opportunities. Next, situated in a student-centric city with budget-friendly costs in comparison to other cities in the UK, Glasgow Caledonian University focuses on hands-on, industry-focused learning with impressive graduate employment rates. The National College of Ireland provides a small, contemporary campus in Dublin with robust ties with the technology sector, internships, and employment prospects in one of Europe’s key technology hotspots.

Lastly, deciding which university and country to select depends on your son’s professional objectives, ideal learning atmosphere, budget, as well as plans for the future- whether he prefers a shorter course term, robust industrial connections, global exposure, or residing in a specific nation.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

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Nayagam P

Nayagam P P  |4455 Answers  |Ask -

Career Counsellor - Answered on Apr 24, 2025

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EWS category rank female 30065 suitable NIT IIIT GFTI admission getting sir 2025
Ans: Rajeswari, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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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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