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Jigar

Jigar Patel  |274 Answers  |Ask -

Stock Market Expert - Answered on Aug 16, 2023

Jigar Patel is a senior manager (technical research analyst) at Anand Rathi Shares and Stock Brokers.
He has around seven years of experience in the stock markets and specialises in sharing outlooks based on technical analysis.
Patel has a PGPM (Finance) certification from the International Institute of Finance Markets.... more
Anil Question by Anil on May 30, 2023Hindi
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I HAVE PURCHASED 20000 SHARES OF BAJAJ HINDUSTAN SUGAR @17

Ans: book partial profits near 21-22
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  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 10, 2024Hindi
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Hi, i have 3 lacs in FD, 9 lacs in Stocks, 6 lacs in MF. i plan to have a SIP of 25k henceforth. Please suggest a strategy to build 50 lacs by Dec-2027.
Ans: Assessing Your Current Financial Situation
Current Investments
Fixed Deposit (FD): Rs. 3 lakhs
Stocks: Rs. 9 lakhs
Mutual Funds (MF): Rs. 6 lakhs
Monthly SIP Plan
SIP Amount: Rs. 25,000
Setting Your Financial Goal
Target Amount
Goal: Rs. 50 lakhs
Time Frame: By December 2027 (approx. 4 years)
Investment Strategy
Diversify Your Portfolio
Stocks: Continue to monitor and diversify your stock investments.
Mutual Funds: Consider adding more actively managed funds for better returns.
Fixed Deposit: Gradually shift funds from FD to high-growth investments like mutual funds.
Monthly SIP Allocation
Balanced Approach
Equity Funds: Allocate Rs. 15,000 to diversified equity funds.
Debt Funds: Allocate Rs. 5,000 to debt funds for stability.
Hybrid Funds: Allocate Rs. 5,000 to hybrid funds for balanced growth.
Benefits of Actively Managed Funds
Flexibility and Expertise
Professional Management: Actively managed funds offer expert insights and adjustments based on market conditions.
Higher Returns: Potential for higher returns compared to passive index funds.
Reviewing and Adjusting Your Portfolio
Regular Reviews
Quarterly Review: Assess the performance of your investments every quarter.
Rebalancing: Adjust your portfolio based on market trends and personal financial goals.
Long-Term Growth Strategy
Compounding Benefits
Consistency: Keep investing Rs. 25,000 every month consistently.
Reinvestment: Reinvest dividends and returns to maximize compounding.
Professional Guidance
Certified Financial Planner
Consult a CFP: Work with a Certified Financial Planner to get personalized advice and avoid costly mistakes.
Final Insights
Stay Disciplined: Regular investments and disciplined savings are key to reaching your goal.
Diversify Wisely: Balance your portfolio with a mix of equity, debt, and hybrid funds.
Monitor and Adjust: Regularly review and adjust your investments to stay on track.
By following this strategy, you can aim to achieve your goal of Rs. 50 lakhs by December 2027. Stay committed to your plan and keep an eye on your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 12, 2024Hindi
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Hi, I'm 27 years old earning 55-60k/month with no significant investment yet. I am investing 1k every month into HDFC ELSS Tax saver - Regular Plan - Growth. Apart from that I've invested around 80k in Stocks. I used to invest around 2k in RD but it matured 2-3 months ago and since then I've been thinking to invest more aggressively but couldn't find the right MF schemes to invest. I can easily invest around 10k in MFs. Can someone please suggest a planned investment strategy for next 20 years at least.
Ans: Current Financial Overview
Age: 27 years
Monthly Income: Rs 55,000 - Rs 60,000
Investments:
HDFC ELSS Tax Saver: Rs 1,000 per month
Stocks: Rs 80,000
Recurring Deposit (matured): Rs 2,000 per month
Investment Goals
Long-Term Goal: Build a strong financial corpus over the next 20 years.
Investment Capacity: Rs 10,000 per month
Assessment of Current Investments
ELSS Tax Saver Fund
Pros: Offers tax benefits and potential for high returns.
Cons: Lock-in period of 3 years, can be volatile.
Stocks
Pros: High potential for growth.
Cons: High risk and requires regular monitoring.
Recommendations for a Diversified Investment Strategy
Increase SIP Contributions
Large Cap Funds: Start a SIP with Rs 3,000 per month. These funds provide stability and steady growth.

Mid Cap Funds: Start a SIP with Rs 2,000 per month. These funds offer higher growth potential than large caps.

Flexi Cap Funds: Start a SIP with Rs 2,000 per month. These funds can invest in companies of any size, providing flexibility.

ELSS Funds: Increase your existing SIP in ELSS by Rs 2,000 per month. This will enhance your tax-saving potential.

Diversify with Debt Funds
Debt Funds: Start a SIP with Rs 1,000 per month. Debt funds provide stability and lower risk, balancing your portfolio.
Review and Optimize Existing Investments
Stock Investments
Review Portfolio: Assess the performance of your stocks. Diversify across sectors to minimize risk.
Long-Term Focus: Keep a long-term perspective and avoid frequent trading.
Emergency Fund
Maintain Liquidity: Ensure you have an emergency fund equivalent to 6 months of expenses. This fund should be in a liquid form.
Health and Life Insurance
Health Insurance: Secure comprehensive health insurance for yourself. This protects against medical emergencies.

Life Insurance: Consider increasing your life insurance coverage if necessary. This ensures financial security for your dependents.

Regular Review and Rebalancing
Annual Review: Review your investment portfolio annually with a Certified Financial Planner. This keeps your investments aligned with your goals.

Portfolio Rebalancing: Rebalance your portfolio periodically. This helps maintain the desired asset allocation and manage risks.

Final Insights
Increase SIP contributions in large cap, mid cap, and flexi cap funds for balanced growth.

Diversify your portfolio with debt funds to reduce risk.

Review and optimize your stock investments for better performance.

Maintain an emergency fund and secure comprehensive health insurance.

Review and rebalance your investment portfolio annually with a Certified Financial Planner to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 10, 2024Hindi
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I am 40 yrs old. 30k per month in nps currently have 16 lakh in nps. Increasing 3 % in nps per year. Have a flat on emi 30k per month. 3 lakh in equity and 6 lakh in mf. Per month mf contribution is 10 K and equity is 12 k. Any change require to generate 10 cr at age of 60
Ans: Current Financial Overview
Age: 40 years

Investments:

NPS: Rs 16 lakhs, contributing Rs 30,000 per month
Equity: Rs 3 lakhs, contributing Rs 12,000 per month
Mutual Funds: Rs 6 lakhs, contributing Rs 10,000 per month
Liabilities:

EMI for Flat: Rs 30,000 per month
Financial Goals
Corpus Target: Rs 10 crores by the age of 60
Evaluation of Current Investments
NPS (National Pension System)
Contribution: Rs 30,000 per month with a 3% annual increase
Pros: Provides tax benefits and a regular pension post-retirement
Cons: Limited liquidity and moderate returns
Equity Investments
Contribution: Rs 12,000 per month
Pros: High growth potential over the long term
Cons: High risk and market volatility
Mutual Funds
Contribution: Rs 10,000 per month
Pros: Diversified investment with potential for good returns
Cons: Subject to market risks
Recommendations for Achieving the Corpus
Increase SIP Contributions
Large Cap Funds: Allocate Rs 5,000 more per month. These funds provide stability and steady growth.

Mid Cap Funds: Allocate Rs 5,000 more per month. These funds offer higher growth potential.

Flexi Cap Funds: Start a new SIP with Rs 5,000 per month. Flexi cap funds adjust investments based on market conditions.

International Funds: Start a new SIP with Rs 3,000 per month. These funds add geographical diversification and reduce country-specific risks.

Review and Optimize Existing SIPs
Current Mutual Funds: Review the performance of your existing mutual funds. Consider shifting to funds with a consistent track record of high returns.

Equity Investments: Diversify your equity investments across different sectors to reduce risk.

Increase NPS Contribution
Increase your NPS contribution by Rs 10,000 per month. This will maximize your tax benefits and ensure a secure retirement.
Build an Emergency Fund
Ensure you have an emergency fund covering at least 6 months of expenses. This should be in a liquid and easily accessible form.
Health and Life Insurance
Secure comprehensive health insurance for yourself and your family. This is crucial to cover medical emergencies and prevent financial strain.

Review your life insurance coverage to ensure it is adequate to cover your family's needs in case of an unforeseen event.

Regular Review and Rebalancing
Annual Review: Review your investment portfolio annually with a Certified Financial Planner. This will help you stay on track to achieve your financial goals.

Portfolio Rebalancing: Rebalance your portfolio periodically to maintain the desired asset allocation and minimize risks.

Final Insights
Increase SIP contributions in large cap, mid cap, and flexi cap funds for balanced growth.

Add international funds for geographical diversification.

Review and optimize existing SIPs for better performance.

Increase your NPS contribution to maximize tax benefits and ensure a comfortable retirement.

Maintain an emergency fund and secure comprehensive health insurance.

Review and rebalance your investment portfolio annually with a Certified Financial Planner to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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Hello, I am investing in MF since 7 years and my current XIRR is 19.5%. I want to know if I stop my current SIPs without redeeming and start new SIPs with same amount will this affect the compounding.
Ans: Understanding Your Investment Strategy
Current Situation
Investment Period: 7 years.
XIRR: 19.5%.
You have achieved an impressive return. It shows your strategy is working well.

Impact of Stopping Current SIPs
Compounding Effect
Existing Investments: Stopping SIPs will not affect the compounding of your existing investments.
Future SIPs: Starting new SIPs with the same amount will continue to grow your portfolio.
Pros and Cons of Starting New SIPs
Benefits
Diversification: Opportunity to diversify your portfolio.
New Opportunities: Invest in funds that may perform better in the future.
Risks
Track Record: New funds might not perform as well as your current ones.
Management Changes: Changing funds means a new fund manager, which may impact performance.
Strategies for Continued Growth
Regular Funds vs Direct Funds
Regular Funds: Managed by certified financial planners, offering expert guidance.
Direct Funds: Requires active management by the investor, which can be risky without expertise.
Actively Managed Funds
Flexibility: Actively managed funds can adapt to market changes.
Professional Management: Fund managers make informed decisions.
Maintaining Compounding Benefits
Consistent Investments
Regular Contributions: Continue investing regularly to benefit from compounding.
Review and Adjust: Periodically review your investments to ensure they align with your goals.
Final Insights
Your current strategy is yielding excellent returns. Here are some key takeaways:

Continue Compounding: Stopping SIPs won't affect existing compounding, but keep investing regularly.
Diversify: Starting new SIPs can offer diversification, but choose funds wisely.
Expert Guidance: Consider consulting a certified financial planner for tailored advice.
Maintaining a disciplined investment approach is key to achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 04, 2024Hindi
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Hi - I am married with two young kids and I am planning to create fund for kids education and my after retirement life. Expected monthly expenses is around 50K. Currently investing in 5 MF invested monthly for last 1.5 years (Nippon Small cap for 4k, Mirae ELSS Tax Saver for 3k, ICICI prudential Passive Multi Asset Fund of Funds for 3k, Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index fund for 2k [from last 8 months] and Quant Absolute Fund for 3k). Has NPS of 1lac.. Can you help guide if the amount invested is appropriate to meet the desired results?
Ans: Current Financial Situation
Family Status: Married with two young kids

Expected Monthly Expenses: Rs 50,000

Current Investments:

Nippon Small Cap Fund: Rs 4,000
Mirae ELSS Tax Saver Fund: Rs 3,000
ICICI Prudential Passive Multi Asset Fund of Funds: Rs 3,000
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund: Rs 2,000
Quant Absolute Fund: Rs 3,000
National Pension System (NPS): Rs 1 lakh

Financial Goals
Fund children's education
Ensure a comfortable retirement
Evaluation and Analysis
Current Investment Strategy
Nippon Small Cap Fund: This provides high growth potential but comes with higher risk.

Mirae ELSS Tax Saver Fund: Offers tax benefits and good returns over the long term.

ICICI Prudential Passive Multi Asset Fund of Funds: Provides diversification across asset classes but has limited growth potential compared to actively managed funds.

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund: Offers tax benefits but may not outperform actively managed funds.

Quant Absolute Fund: This is a balanced fund with moderate risk and return.

NPS: A good long-term investment for retirement with tax benefits.

Recommendations
Diversify and Increase SIP Contributions
To better achieve your goals, consider the following adjustments:

Large Cap Fund: Increase your SIP in a large cap fund to Rs 5,000 monthly. Large cap funds provide stability and steady growth.

Mid Cap Fund: Start a SIP of Rs 5,000 monthly in a mid cap fund. Mid cap funds offer higher growth potential with moderate risk.

Flexi Cap Fund: Start a SIP of Rs 3,000 monthly in a flexi cap fund. Flexi cap funds adjust investments across market caps based on market conditions.

International Fund: Start a SIP of Rs 2,000 monthly. This adds geographical diversification and reduces country-specific risks.

Review Existing SIPs
Nippon Small Cap Fund: Continue with your current SIP of Rs 4,000. Small cap funds can deliver high returns over the long term.

Mirae ELSS Tax Saver Fund: Continue your SIP of Rs 3,000. ELSS funds provide tax benefits and good returns.

ICICI Prudential Passive Multi Asset Fund of Funds: Consider reducing or shifting your SIP to an actively managed fund for higher returns.

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund: Consider shifting to an actively managed ELSS fund for better performance.

Quant Absolute Fund: Continue your SIP of Rs 3,000. This balanced fund offers moderate risk and returns.

Increase Contributions to NPS
Increase your NPS contribution to Rs 1.5 lakh annually. This will maximize your tax benefits and ensure a secure retirement.
Build an Emergency Fund
Ensure you have an emergency fund that covers at least 6 months of expenses. This fund should be in a liquid and easily accessible form.
Health and Life Insurance
Secure comprehensive health insurance for yourself and your family. This is crucial to cover medical emergencies and prevent financial strain.

Review your life insurance coverage to ensure it is adequate to cover your family's needs in case of an unforeseen event.

Final Insights
Increase your SIP contributions in large cap, mid cap, and flexi cap funds for balanced growth.

Add an international fund for geographical diversification.

Review and adjust your existing SIPs for better performance.

Increase your NPS contribution to maximize tax benefits and ensure a comfortable retirement.

Maintain an emergency fund and secure comprehensive health insurance.

Review your investment portfolio annually with a Certified Financial Planner to stay on track for your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 05, 2024Hindi
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I have a monthly income of around 8 lacs . Savings are currently 5 CR in equities and MF. Around 2 CR in debt like pf , ppf , etc . No loans. Kids are around 12 year old. I have 2 kids whose study , I need to plan. I m 46 and plan to retire in 7 years . I have adequate medical coverage for all. Please suggest if my investment strategies are good. My wife is working and she has her own savings.
Ans: Assessing Your Current Investment Strategy
Strong Financial Position
Monthly Income: Rs 8 lakhs.
Savings: Rs 5 crore in equities and mutual funds, Rs 2 crore in debt instruments.
No Loans: Debt-free status enhances financial security.
Adequate Medical Coverage: Comprehensive coverage for your family is vital.
Your investment strategy reflects a robust and well-thought-out approach. Let's dive deeper into ensuring it aligns with your future goals.

Planning for Children’s Education
Education Fund
Current Age: Kids are 12 years old.
Target Goal: College education in 6-8 years.
To secure their future, consider the following:

Dedicated Education Fund: Establish a separate fund solely for education.
Balanced Approach: Mix of equities for growth and debt for stability.
Review Annually: Adjust based on market conditions and education costs.
Retirement Planning
Retirement Corpus
Retirement Age: Plan to retire at 53.
Time Horizon: 7 years to build the retirement corpus.
Ensure a smooth transition into retirement:

Aggressive Growth: Continue with equities and mutual funds for higher returns.
Gradual Shift to Debt: As retirement nears, increase debt exposure for safety.
Emergency Fund: Maintain a buffer to cover unexpected expenses.
Diversification and Risk Management
Current Allocation
Equities and Mutual Funds: Rs 5 crore.
Debt Instruments: Rs 2 crore.
Recommended Adjustments
Consistent Review: Regularly evaluate the performance of your investments.
Rebalance Portfolio: Adjust the mix based on changing financial goals and market conditions.
Diversification: Ensure a balanced exposure across various sectors and asset classes.
Actively Managed Funds vs Index Funds
Actively Managed Funds
Professional Management: Expertise of fund managers.
Market Adaptability: Ability to respond to market changes.
Index Funds
Market Performance: Track the market index, limiting potential gains.
Passive Management: Lack flexibility to adapt to market conditions.
Direct vs Regular Funds
Direct Funds
Self-Managed: Requires investor’s active involvement.
Potential Risks: Higher risk of making suboptimal decisions.
Regular Funds
Expert Guidance: Managed by a certified financial planner.
Balanced Strategy: Ensures a well-informed investment approach.
Final Insights
You have a strong financial base with a clear vision for your future. Here are some key takeaways:

Focus on Education Fund: Secure your children’s future with a balanced approach.
Retirement Planning: Continue aggressive growth but gradually shift to safer investments as retirement nears.
Diversification: Regularly review and rebalance your portfolio to manage risks effectively.
Seek Professional Advice: Consider consulting a certified financial planner for tailored guidance and to avoid costly mistakes.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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I m 32 years old , My current salary is 1.2 lakh , having 60 k sip in mutual fund, Parag Parikh flexi MF 20k per month , Mirae asset ELSS and Canara robeco ELSS MF 5K each, Nippon large cap 5k , pgim mid cap 5 k , Nippon Tata & Quant small cap fund 5 k each , my Target 10 cr corpus till my retirement.
Ans: Current Financial Situation
Age: 32 years

Monthly Salary: Rs 1.2 lakhs

SIP Investments: Rs 60,000 per month

Parag Parikh Flexi Cap Fund: Rs 20,000

Mirae Asset ELSS Fund: Rs 5,000

Canara Robeco ELSS Fund: Rs 5,000

Nippon Large Cap Fund: Rs 5,000

PGIM Mid Cap Fund: Rs 5,000

Nippon Small Cap Fund: Rs 5,000

Tata Small Cap Fund: Rs 5,000

Quant Small Cap Fund: Rs 5,000

Financial Goals
Build a retirement corpus of Rs 10 crore
Evaluation and Analysis
Diversified Portfolio
Your portfolio is diversified across flexi cap, ELSS, large cap, mid cap, and small cap funds.

This diversification reduces risk and increases growth potential.

ELSS Investments
Investments in ELSS funds provide tax benefits under Section 80C.

Mirae Asset ELSS and Canara Robeco ELSS are good choices for tax saving and growth.

Flexi Cap Fund
Parag Parikh Flexi Cap Fund offers flexibility and potential for high returns.
Recommendations
Maintain Existing SIPs
Your current SIPs are well-diversified and aligned with your financial goals.

Continue with the existing SIPs for consistent growth.

Increase SIP Contributions
To achieve a Rs 10 crore corpus, consider increasing your SIP contributions over time.

Increase in Flexi Cap Fund: Increase your SIP in Parag Parikh Flexi Cap Fund to Rs 25,000. Flexi cap funds offer flexibility and can adapt to market changes.

Increase in Large Cap Fund: Increase your SIP in Nippon Large Cap Fund to Rs 10,000. Large cap funds provide stability and steady growth.

Increase in Mid Cap Fund: Increase your SIP in PGIM Mid Cap Fund to Rs 10,000. Mid cap funds offer higher growth potential.

Additional Investment Options
Consider adding the following SIPs for further diversification and growth:

International Fund: Start a SIP of Rs 5,000 monthly. This adds geographical diversification and reduces country-specific risks.

Balanced Advantage Fund: Start a SIP of Rs 5,000 monthly. This fund balances equity and debt based on market conditions.

Health Insurance
Secure a comprehensive health insurance plan for yourself and your family. This is crucial to cover medical emergencies and prevent financial strain.
Debt Management
Car Loan: If you have any existing loans, consider prepaying them to reduce the interest burden and free up additional funds for investment.
Final Insights
Your diversified investment strategy is commendable. Maintain your current SIPs and consider increasing contributions in flexi cap, large cap, and mid cap funds.

Add international and balanced advantage funds for further diversification and growth.

Secure comprehensive health insurance for yourself and your family.

Review your investment portfolio annually with a Certified Financial Planner to stay on track for your Rs 10 crore retirement goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jul 15, 2024Hindi
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I am looking for a long term retirement plan. Currently I have my assets as below: Mutual funds: (invested only in Index funds) (11Lakhs) Nifty 50 - 2L Nifty next 50 - 2L Nifty 200 momentum 30 - 1L Nifty Midcap 150 - 2L Nifty Smallcap 250 Quality 50 - 2L Nasdaq 100 - 1L Nifty Microcap 250 - 1L Real Estate - 95Lakhs (only land) PPF - 6Lakhs My in-hand salary is around - 2.3 Lakhs Family of 3 (Me, Wife and 2yr girl baby) Term insurance - 1.5 crore Health insurance - corporate insurance I am doing SIP for 35k every month and also doing chit funds for 20 lakhs (monthly 80k) so I can use that lumpsum for real-estate investments. Can you please suggest how should I plan properly so that I can get passive income as atleast 1Lakhs and retire in next 15 to 20 years?
Ans: Assessing Your Current Financial Situation
You have a robust financial foundation. Your assets include mutual funds, real estate, and PPF. Your monthly savings are impressive, and you have adequate insurance coverage. Let's refine your plan for a secure retirement.

Mutual Fund Portfolio
Diverse Holdings: Your mutual funds are well-diversified but focus on index funds.
Actively Managed Funds: Consider adding actively managed funds. They can outperform index funds over the long term.
Real Estate
Current Investment: You have significant real estate holdings.
Diversification: Avoid further real estate investments. Focus on more liquid assets.
Public Provident Fund (PPF)
Stable Returns: PPF offers safe, tax-free returns.
Long-Term Benefits: Continue investing to benefit from compound interest.
Monthly Investments
SIP and Chit Funds: You invest Rs 35,000 in SIPs and Rs 80,000 in chit funds.
Realignment: Shift some funds from chit funds to diversified mutual funds. This offers better returns and liquidity.
Passive Income Generation
Systematic Withdrawal Plans (SWP)
Regular Income: SWPs from mutual funds can provide steady income.
Tax Efficiency: SWPs are tax-efficient compared to fixed deposits.
Dividend-Paying Stocks and Mutual Funds
Consistent Income: Invest in funds that pay regular dividends.
Growth Potential: Ensure a mix of growth and dividend-paying investments.
Public Provident Fund (PPF)
Interest Income: Use PPF interest as part of your passive income.
Safe Option: PPF is a risk-free investment.
Enhancing Retirement Corpus
Increase SIP Amount
Higher Returns: Increase your SIP to Rs 50,000 or more as income grows.
Compounding: Higher investments will grow significantly over time.
Review and Rebalance Portfolio
Annual Review: Review your portfolio annually.
Rebalance: Adjust based on market conditions and financial goals.
Emergency Fund
Safety Net: Maintain an emergency fund covering 6-12 months of expenses.
Liquidity: Keep this fund in a liquid mutual fund or savings account.
Insurance Coverage
Term Insurance
Adequate Coverage: You have a Rs 1.5 crore term insurance.
Review: Ensure it covers all future liabilities and family needs.
Health Insurance
Corporate Insurance: You rely on corporate health insurance.
Additional Coverage: Consider a personal health insurance policy for comprehensive coverage.
Long-Term Investment Strategy
Diversification
Balanced Approach: Diversify investments across equity, debt, and hybrid funds.
Risk Management: Spread risk across various asset classes.
Professional Guidance
Certified Financial Planner (CFP): Consult a CFP for personalized advice.
Regular Updates: Stay informed about market trends and adjust investments accordingly.
Final Insights
Your current savings and investment plan show promise. To secure your retirement and generate passive income, diversify your investments, increase SIP amounts, and consider systematic withdrawal plans. Regularly review your financial plan with a Certified Financial Planner for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5072 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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Hi Iam 26 years old earning 75k per month and I have car loan of 6 lakhs rupees and Iam investing around 10 k in sip splitted across small,large and Elss funds,and having 3 units of SGB and around RD of 1,50,000 and started term insurance of 1 cr rupees and I like to get corpus around 20 cr while retiring .Please suggest some diversified investment to achieve this corpus.
Ans: Current Financial Situation
Age: 26 years
Monthly Salary: Rs 75,000
Car Loan: Rs 6 lakhs
SIP Investments: Rs 10,000 in small, large, and ELSS funds
SGB Holdings: 3 units
Recurring Deposit (RD): Rs 1,50,000
Term Insurance: Rs 1 crore
Financial Goals
Build a retirement corpus of Rs 20 crore
Evaluation and Analysis
Existing Investments
Your SIPs in small, large, and ELSS funds are a good start for diversified growth.
Sovereign Gold Bonds (SGB) provide a hedge against inflation.
The recurring deposit adds stability to your portfolio but offers lower returns.
Debt Management
Your car loan of Rs 6 lakhs needs to be managed efficiently. Consider prepaying it to reduce interest burden.
Recommendations
Increasing SIP Contributions
To achieve a Rs 20 crore corpus by retirement, you need a disciplined and diversified investment approach.

Large Cap Fund: Increase your SIP to Rs 5,000 monthly. Large cap funds provide stability and steady growth.

Mid Cap Fund: Start a SIP of Rs 3,000 monthly. Mid cap funds offer higher growth potential with moderate risk.

Small Cap Fund: Continue your existing SIP of Rs 3,000 monthly. Small cap funds can deliver high returns over the long term.

ELSS Fund: Continue investing Rs 4,000 monthly. This not only provides tax benefits but also offers good returns.

Additional Investment Options
Flexi Cap Fund: Start a SIP of Rs 3,000 monthly. This fund adjusts investments across market caps based on market conditions.

International Fund: Start a SIP of Rs 2,000 monthly. This adds geographical diversification and reduces country-specific risks.

Managing Existing Debt
Car Loan: Aim to prepay the car loan as soon as possible. This will free up additional funds for investment.

Recurring Deposit: Gradually shift from RD to high-growth investment options like mutual funds. RD provides stability but lower returns.

Building an Emergency Fund
Ensure you have an emergency fund that covers at least 6 months of expenses. This fund should be in a liquid and easily accessible form.
Health Insurance
Secure a comprehensive health insurance plan for yourself. This is crucial to cover medical emergencies and prevent financial strain.
Long-term Investment Strategy
Equity Mutual Funds: Continue to focus on diversified equity funds. Review the performance annually and make adjustments if necessary.

Debt Mutual Funds: Allocate a portion of your investments to debt mutual funds for stability as you approach retirement.

Gold Investments: Continue holding SGBs as they provide a hedge against inflation and add to your diversified portfolio.

Final Insights
Increase your SIP contributions across large, mid, and small cap funds for balanced growth.
Diversify further with flexi cap and international funds.
Prepay your car loan to reduce debt burden and free up funds for investments.
Maintain an emergency fund and secure comprehensive health insurance.
Review your investment portfolio annually with a Certified Financial Planner to stay on track for your Rs 20 crore retirement goal.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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