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Vivek

Vivek Lala  |251 Answers  |Ask -

Tax, MF Expert - Answered on May 19, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Bhogu Question by Bhogu on May 15, 2024Hindi
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Sir- In the present days of the volatile market please let me know whether opting for growth or dividend pay is advantageous while applying for MFs.

Ans: Hello,
Never go for dividend options , if you need monthly cashflow from mutual funds then please go with the option of SWP - Systematic Withdrawal Plan under growth option as its better in terms of taxation
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  |4605 Answers  |Ask -

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

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Hi Dev, I,m a defence pensioner and 60 years old. I want to invest Rs 5 lakhs in MF for a duration of 1-3 years, please advise which MF will be better for me. Thanks
Ans: Given your investment horizon of 1-3 years and considering your age and risk profile, it's essential to prioritize capital preservation while aiming for modest returns. Here are some mutual fund options that may suit your investment needs:

Short-Term Debt Funds: These funds invest in fixed-income securities with relatively shorter maturities, providing stability and liquidity. They are suitable for investors looking to preserve capital while generating better returns than traditional savings accounts or fixed deposits. Consider investing in reputable short-term debt funds with a track record of delivering consistent returns and maintaining low volatility.
Liquid Funds: Liquid funds invest in short-term money market instruments with very high liquidity and minimal interest rate risk. They offer stability of capital and can be an excellent option for parking funds temporarily or meeting short-term financial goals. Liquid funds typically have a low expense ratio and can provide relatively higher returns compared to savings accounts or fixed deposits.
Ultra Short Duration Funds: These funds invest in fixed-income securities with short to ultra-short maturities, offering a balance between stability and yield. They can be suitable for investors with a slightly longer investment horizon of 1-3 years who are willing to take on slightly higher risk for potentially higher returns than traditional fixed deposits or savings accounts.
Arbitrage Funds: Arbitrage funds aim to generate returns by exploiting price differentials between cash and derivative markets. They offer relatively low volatility and tax-efficient returns, making them suitable for short-term investments. However, it's essential to note that arbitrage funds are subject to market risks and may not guarantee fixed returns.
Before making any investment decisions, it's advisable to consult with a certified financial planner or investment advisor who can assess your financial goals, risk tolerance, and investment horizon. They can help you select mutual funds that align with your investment objectives and provide personalized guidance based on your unique financial situation. Additionally, carefully review the fund's investment objectives, past performance, expense ratio, and risk factors before investing.

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Ramalingam

Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 20, 2024Hindi
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Hello sir I'm 30 yrs old govt salaried employee having CTC of 18LPA. I've not yet started investment in MFs/stocks. For learning purposes bought some shares of different companies of worth 100k. As of now my only monthly savings of 40k goes to PPF only. My questions are as follows :- 1. I want to grow my money but not sure which category of MFs to choose. I'm considering my risk appetite is moderate to high 2. Choosing MFs is good or picking stocks of companies like Reliance, HDFC etc in longer run; which is better for wealth creation. 3. Sometimes liquidity is reqd urgently, so how to tackle with it. Should I keep that amount in Bank account or there's some category of MFs where I can get more returns than normal RDs & liquidity can be done quickly. Waiting for the experts' wise guidance cum opinion Sandeep from Delhi
Ans: Understanding Your Investment Goals and Risk Profile
Sandeep, it's great to see your interest in growing your wealth and taking proactive steps towards financial security. Let's address your queries and devise a suitable investment strategy aligned with your goals and risk appetite.

Assessing Your Investment Horizon and Risk Appetite
Considering your age and moderate to high risk appetite, investing in equity mutual funds or individual stocks could be suitable. However, it's crucial to understand your investment horizon and tolerance for market fluctuations.

Mutual Funds vs. Individual Stocks
Both mutual funds and individual stocks offer opportunities for wealth creation. Mutual funds provide diversification and professional management, reducing risk compared to investing in individual stocks. However, selecting quality stocks with strong fundamentals can potentially generate higher returns over the long term.

Liquidity Management
Maintaining liquidity is essential for handling unexpected expenses or seizing investment opportunities. While keeping funds in a bank account provides immediate liquidity, consider allocating a portion of your savings to liquid or ultra-short duration mutual funds. These funds offer higher returns than traditional savings accounts while ensuring quick access to funds when needed.

Addressing Liquidity Needs with Mutual Funds
Investing in liquid or ultra-short duration mutual funds allows you to earn higher returns than regular savings accounts or fixed deposits while maintaining liquidity. These funds invest in short-term debt instruments, offering stability and easy redemption options.

Building a Well-Diversified Portfolio
Diversification is key to managing risk and optimizing returns. Consider allocating your investments across different asset classes, including equity mutual funds, debt mutual funds, and liquid funds, based on your financial goals and risk tolerance.

Regular Funds Investing through a Certified Financial Planner
Investing through a Certified Financial Planner (CFP) offers several advantages. A CFP provides personalized advice, portfolio management, and regular reviews to ensure your investments are aligned with your objectives. They help you navigate market uncertainties and make informed decisions to achieve your financial goals.

Conclusion
Sandeep, by understanding your investment goals, risk profile, and liquidity needs, we can create a tailored investment strategy. Considering your moderate to high risk appetite, investing in equity mutual funds or quality stocks can potentially generate significant returns over the long term. Additionally, allocating a portion of your savings to liquid mutual funds ensures liquidity while earning higher returns than traditional savings accounts.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Maxim

Maxim Emmanuel  |288 Answers  |Ask -

Soft Skills Trainer - Answered on Jul 12, 2024

Asked by Anonymous - Apr 23, 2024Hindi
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Hello sir my name is Santu Chakraborty.I am 34 year old now unmarried. My qualification is Bsc botany honours with 2nd class +diploma in mechanical engineering with distinction +btech in mechanical engineering from government engineering college west Bengal with 7.5 dgpa.I have 6 years of teaching experience in private diploma engineering college and now I working as a vocational teacher in automobile engineering department in gov high school.In my early phase of life I am going through lots of Misguide,seveare Anxiety issue. Nobody can help me on that phase.I recover mostly by my own after various dillema.I want to work in mechanical r and d company, Mechanical design basis company and also upgrade my teaching carrier. How can I start my journey at this age ?what is the risk factor also? Please tell me. I am very enthusiastic dedicated person. I have no guide in my home. My father is vegetable seller.
Ans: Hi Santu Chakraborty,

This is a really exhaustive query.

The journey thru' your acquisition of qualifications has been vast!

In the course of your life you are now suffering from SNIOP (SUSCEPTIBLE NEGATIVE INFLUENCE OTHER PEOPLE) this happens when you let others control your life.

I have this poem.. Especially for one's like you!

The Guy in the Glass

When you get what you want in your struggle for pelf,
And the world makes you King for a day,
Then go to the mirror and look at yourself,
And see what that guy has to say.
For it isn't your Father, or Mother, or Wife,
Who judgement upon you must pass.
The feller whose verdict counts most in your life
Is the guy staring back from the glass.
He's the feller to please, never mind all the rest,
For he's with you clear up to the end,
And you've passed your most dangerous, difficult test
If the guy in the glass is your friend.
You may be like Jack Horner and "chisel" a plum,
And think you're a wonderful guy,
But the man in the glass says you're only a bum
If you can't look him straight in the eye.
You can fool the whole world down the pathway of years,
And get pats on the back as you pass,
But your final reward will be heartaches and tears
If you've cheated the guy in the glass.

Dale Wimbrow (c) 1934

Get the enthusiasm going, don't get embroiled in what life has been before!

Take a stranglehold of your life and make it BIG!

The opportunities are.. Miracles waiting to happen, what are you waiting for.. You are the catalyst!?
Maxim Emmanuel.

Pick up yourself don't be a victim of self pity.

If you do need further professional advice happy to assist
https://m.me/maxim.emmanuel.2024

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Nayagam P

Nayagam P P  |1830 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2024

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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