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Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 11, 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
Asked by Anonymous - Apr 10, 2024Hindi
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Ramalingam, Good Evening I am a retired 65 years old person. I am still serving. I have investments in PF , PPF and few MF. I want to start investing in Mutual Fund in a big way for 5 years. 30000 PM. This is for my sons future security. Can you suggest good funds across all categories which will give maximum returns?

Ans: For a diversified portfolio with maximum returns over 5 years, consider allocating your investment across various categories:

Large Cap Funds: Invest in well-established companies for stability and steady returns.
Mid Cap Funds: Allocate a portion to mid-sized companies for potential growth.
Small Cap Funds: Include some investment in small, rapidly growing companies for higher growth potential.
Balanced Advantage Funds: These dynamically manage equity exposure based on market conditions for optimal returns.
Debt Funds: Provide stability and regular income to your portfolio.
By diversifying across these categories, you can potentially maximize returns while managing risks. It's essential to periodically review your portfolio and consult with a financial advisor for personalized guidance.
Asked on - Apr 14, 2024 | Answered on Apr 15, 2024
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I would like to take your advise on the names of funds to be invested in the categories mentioned by you and also periodic assessment of the progress and changes required. I am investing out of my PF interest which I get monthly. How will you help me? What will be the system? How periodically will you review and what frequency? Will you give any report on assessment? What will be your fees? As I am doing it for Son, I wish it will be a good amount I can gift him as a father.
Ans: You can check the details in my profile please. https://gurus.rediff.com/question/guru/ramalingam-kalirajan/137

Please search for "online financial planning & Retirement planning services with a Holistic Approach" in Google and then follow the below steps with the results.

Research: Start by researching reputable brokerage firms that offer mutual fund advisory services. Look for firms with a strong track record, experienced financial advisors, and a range of services tailored to your needs.

Consultation: Schedule a consultation with the brokerage firm to discuss your financial goals, risk tolerance, investment preferences, and other relevant factors. This initial meeting will help the advisor understand your needs and recommend suitable investment strategies.

Advisory Services: Once you've selected a brokerage firm, the advisor will work with you to develop a personalized mutual fund investment plan. They will recommend specific funds based on your financial objectives and provide ongoing guidance to help you navigate the market.

Regular Reviews: Schedule periodic reviews with your advisor to assess the performance of your mutual fund investments, review changes in your financial situation, and make any necessary adjustments to your investment strategy.


By following these steps, you can access the expertise of professional brokerages to assist you in financial planning and investment management.
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  |5283 Answers  |Ask -

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

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hi sir i am 41 years old, now i want invest in mutual fund for my retirement and for my two sons one of it is 15 years and second is 10 years old. i can invest 5000 rs per month please suggest me funds that can i invest.
Ans: Given your investment horizon for retirement and your sons' education, you have a long-term horizon which allows you to consider equity-oriented mutual funds for potentially higher returns. Here are some suggestions tailored to your needs:

For Retirement (Long-Term):
Large Cap Funds: These funds invest in well-established companies, offering stability and growth potential. Given your longer investment horizon, consider allocating a portion to large-cap funds to provide stability to your portfolio.
Multi-Cap Funds: These funds offer diversification across market capitalizations and are suitable for long-term wealth creation. They can adapt to different market conditions, providing flexibility to the fund manager.
For Sons' Education (Medium to Long-Term):
Balanced Funds or Hybrid Funds: These funds invest in both equities and debt, offering a balance between growth and stability. They can be suitable for medium to long-term goals like your sons' education.
Children's Gift Funds or Children's Education Funds: Some mutual funds offer specific funds designed for children's future needs, providing a tailored solution for education expenses.
Considering your investment amount and goals, you can consider investing in a combination of the above-mentioned funds to achieve diversification and align with your financial goals. Here's a potential allocation:

Large Cap Funds: 40%
Multi-Cap Funds: 40%
Balanced or Hybrid Funds: 20%
Remember, it's essential to review your investments periodically and adjust your portfolio as needed based on performance, changing financial goals, and market conditions. Consult with a financial advisor to ensure your investment strategy aligns with your financial goals, risk tolerance, and investment horizon.

..Read more

Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 25, 2024

Asked by Anonymous - Apr 25, 2024Hindi
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Hello Sir, I am 42 years old women. Earning 1 LPM in hand. I Have 15 years old son. I never invested in mutual funds. Requesting your advice to start investing in mutual funds, like how much in which mutual funds. so I can achieve below goals 5 cr before retirement( in next 16 years) 1 cr for my son higher education by another 7 years. 1 Cr for my son marriage in another 10 years Current investments are: 1. PPF - 1.5 LPA from last 5 years ( planning to reduce considering the interest rate ) 2. VPF - 22k per month from last 2 year 3. PF- 12k per month ( and additional 12k from Employer) ( I have total around 20 L in PF now ) 4. NPS - 10k per month from last 1 year Kindly please help me with your answers considering no other income stream.
Ans: It's commendable that you're looking to start investing in mutual funds to achieve your financial goals. With a clear vision and a steady income, you're well-positioned to embark on this investment journey.

Given your goals and current investments, here's a suggested approach:

Retirement Corpus (5 Cr in 16 years): Given the time horizon, you can consider investing in a combination of equity mutual funds for higher returns potential and debt mutual funds for stability. An SIP in diversified equity funds and balanced funds could be a good starting point.
Son's Higher Education (1 Cr in 7 years): To achieve this goal, you might consider investing in a mix of equity and debt funds, leaning more towards equity for higher growth potential.
Son's Marriage (1 Cr in 10 years): Similar to the education goal, a blend of equity and debt funds can be considered. You might also explore targeted funds designed for specific financial goals.
Given your current investments in PPF, VPF, PF, and NPS, you have a stable foundation. However, considering the reducing interest rates and your goals' timelines, diversifying into mutual funds could potentially offer higher returns.

A Certified Financial Planner can provide personalized advice tailored to your needs, risk tolerance, and investment horizon. They can help you select suitable mutual fund categories, recommend investment amounts, and guide you on portfolio diversification.

Remember, investing is a long-term commitment, and it's essential to stay invested and review your portfolio periodically. Best wishes on your investment journey towards achieving your financial goals!

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 19, 2024Hindi
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I want to buy a house for 50 lac how much sip need to done to achieve the goal in 10 years
Ans: It's great that you are planning to buy a house worth Rs. 50 lakh in 10 years. Setting such a goal helps in focused financial planning.

Benefits of SIPs
Systematic Investment Plans (SIPs) are effective. They allow you to invest small amounts regularly. This helps in averaging the cost and reducing the impact of market volatility. SIPs also instill financial discipline.

Estimating the Required SIP Amount
To achieve Rs. 50 lakh in 10 years, we need to estimate the monthly SIP. Assuming an average annual return of 12%, you would need to invest around Rs. 21,000 per month.

Steps to Calculate SIP Amount
Define Your Goal: Rs. 50 lakh for buying a house.

Time Frame: 10 years.

Expected Returns: 12% per annum.

Calculate Monthly SIP: Use an SIP calculator for precise amounts.

Benefits of Actively Managed Funds
Actively managed funds are beneficial. These funds are managed by expert fund managers. They aim to outperform the market. This can provide better returns compared to index funds.

Advantages of Actively Managed Funds
Professional Management: Expert fund managers handle your money.

Higher Returns: Potential to outperform the market.

Strategic Flexibility: Fund managers can adjust the strategy based on market conditions.

Disadvantages of Index Funds
Index funds track a specific index. They lack active management. This can limit their performance.

Drawbacks of Index Funds
Limited Growth Potential: They only match market returns.

No Active Management: Lack of strategic adjustments.

Lower Flexibility: Cannot react to market changes.

Benefits of Regular Funds Through CFP
Investing in regular funds through a Certified Financial Planner (CFP) provides valuable guidance. This helps in making informed investment decisions.

Advantages of Regular Funds Through CFP
Expert Advice: Guidance from certified professionals.

Regular Monitoring: Ongoing portfolio review and adjustments.

Informed Decisions: Better understanding of market trends.

Monitoring and Adjusting Your Portfolio
Regular reviews are essential. The market is dynamic, and your portfolio needs adjustments. A CFP can assist in rebalancing your investments. This keeps your portfolio aligned with your goals.

Tax Efficiency
Mutual funds offer tax benefits. Long-term capital gains (LTCG) on equity funds are tax-free up to Rs. 1 lakh annually. Proper tax planning enhances your returns.

Financial Discipline
Staying committed to your SIP is crucial. Market fluctuations can be unsettling. However, maintaining discipline is key to achieving your target.

Additional Considerations
Ensure you have adequate insurance coverage. This protects your investments in unforeseen circumstances. Also, keep an emergency fund to handle unexpected expenses.

Final Insights
Investing in mutual funds through SIPs is a wise decision. With careful planning and regular reviews, you can achieve your goal of Rs. 50 lakh in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 18, 2024Hindi
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I am 27 years old, And making 175000 in hand(minus PF Tax etc) I have a house loan of 80L with monthly Emi of 70k and Personal loan with monthly Emi of 17.5k totalling to approx 88k. I have bought a house which is giving me 22k in rent every month and my monthly expenses comes out to 25-30k every month. I have a PF of 8L accumulated with 23k going into that every month. And just now started SiP of 25k every month and 15k RD. I need a plan of investment to make a corpus of 10CR in 18years and eyeing to clear my house loan in 8 years so I can be without debt. Personal loan i will clear within 6 months. Could someone help as to what should be my plan to invest and debt management?
Ans: Financial Assessment
You have a well-established foundation with a corpus of Rs 2.25 crores, no debt, and a good insurance cover. Your goal of generating Rs 2 lakhs per month net of taxes for the next 50 years is ambitious but achievable with careful planning.

Investment Portfolio Review
1. Mutual Funds (MF):

You have been investing in MFs through SIP and STP, which is a good strategy.
Actively managed funds can provide better returns than index funds.
Ensure diversification across equity, debt, and hybrid funds.
2. Health and Term Insurance:

Your family floater health insurance of Rs 10L with a Rs 10L top-up is adequate.
Your term plan of Rs 25L is essential for protecting your family.
3. Diversification:

Diversification reduces risk. Spread investments across different asset classes.
Income Generation Strategy
1. Systematic Withdrawal Plan (SWP):

SWPs in mutual funds can provide regular income.
Invest in a mix of equity and debt funds to balance risk and returns.
2. Balanced Allocation:

Allocate funds across equity (40%), debt (40%), and other assets (20%).
Equity for growth, debt for stability, and other assets for diversification.
3. Monthly Income Plans (MIP):

MIPs in mutual funds can provide regular monthly income.
Choose funds with a good track record.
Risk Management
1. Regular Monitoring:

Review your portfolio regularly.
Adjust based on market conditions and personal needs.
2. Professional Guidance:

Seek advice from a Certified Financial Planner (CFP).
Regular reviews with your CFP will ensure your plan stays on track.
Tax Planning
1. Tax-efficient Investments:

Invest in tax-efficient instruments like ELSS for equity exposure.
Use tax benefits under Section 80C.
2. Regular Review:

Regularly review your tax-saving investments.
Adjust based on changes in tax laws.
Long-term Growth
1. Reinvestment:

Reinvest returns for compounded growth.
Use SIPs and STPs to maintain discipline.
2. Diversified Portfolio:

Maintain a diversified portfolio to mitigate risks.
Include a mix of large-cap, mid-cap, and small-cap funds.
Final Insights
Your financial plan is on a solid footing. With a corpus of Rs 2.25 crores, careful investment in mutual funds, and regular monitoring, you can achieve your goal of Rs 2 lakhs per month. Ensure you diversify your investments and seek professional guidance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Anu

Anu Krishna  |1057 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 25, 2024

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Anu Krishna  |1057 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 25, 2024

Asked by Anonymous - Jun 21, 2024Hindi
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Relationship
I fight in my house with my parents and brothers for them to accept for my inter religion love marriage...they are not accepting for it,they are trying to do marriage with other person for me,with lots of fights and talking they finally cancelled the marriage option with other person and gave me a time of 2yrs,that they will not get you any type matches,they won't distrub...after 2yrs if iam ready then only they will search for it..they clearly mentioned that if it be 2yrs or 10yrs...we won't accept that guy whom you have been in relationship...if you want to stay as single forever...we will leave you,as single...but we won't accept him,or we won't let u to marry him that guy... because ,they were bothering about society and caste,that he belongs to other religion... what should I want to do,I can't leave him,and I can't live without him... should I take 2yrs time,may there mind will change? Or what else I should do
Ans: Dear Anonymous,
Well, as a grown-up and I assume that you are of a legal age to get married, it's purely the decision of the two people in question. But. of course, being part of a family system, it becomes a need to actually have their support as well, right? Then, work for it...You can possibly use part of the two years to work with your parents into understanding why you like this person and why you will be happy with him. It's a process, but if you want the support of your parents, then make that attempt.
Keep some sort of a deadline to this process else you will start to get frustrated it does not move in the direction that you want.

Will they change their mind? You will never know...But after that deadline, decide for yourself what you wish to do BUT it will all come at some cost/sacrifice. Make that attempt...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

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Hi... I am 48 years of age. Currently in hand salary income is 140000. My total monthly savings is 56000. ie post office RD 25k which is going to mature in Jan 2025, bank RD 30k which is going to mature in Dec 2024, sip in MF 6k (started 6 months back). My total expenses is bank EMI 24k per month, other monthly expenses including children's tuition fee 55k. My investment - 2 flats worth rs. 75k, ppf 2L, insurance 10L, Equity 40k Other income - flat rent 8k monthly. Request for proper planning for investment next 12 yrs to achieve 2cr goal. Regards.. RHP
Ans: Current Financial Overview

You are 48 years old with an in-hand salary of Rs. 1,40,000 per month. Your savings and investments are as follows:

Monthly Savings: Rs. 56,000
Post Office RD: Rs. 25,000 (maturing Jan 2025)
Bank RD: Rs. 30,000 (maturing Dec 2024)
SIP in Mutual Funds: Rs. 6,000 (started 6 months back)
Your expenses include:

Bank EMI: Rs. 24,000 per month
Other Monthly Expenses: Rs. 55,000 (including children's tuition fees)
Your current investments are:

Two Flats: Worth Rs. 75 lakhs
PPF: Rs. 2 lakhs
Insurance: Rs. 10 lakhs
Equity: Rs. 40,000
You also have a rental income of Rs. 8,000 per month from one of your flats.

You aim to achieve a goal of Rs. 2 crores in the next 12 years.

Assessment of Current Investments

You have a mix of real estate, recurring deposits, insurance, and a small amount in mutual funds and equity. While real estate and RDs are safe, they may not provide the high growth needed to achieve your goal. Diversifying into other investment options is crucial.

Diversification Strategy

Mutual Funds for Growth

Increase your SIP contributions in mutual funds. Diversify across large cap, mid cap, and multi cap funds for balanced growth.
Actively managed funds can provide better returns than direct or index funds. They offer professional management and diversification.
Public Provident Fund (PPF)

Continue investing in PPF for tax-free returns. It provides long-term stability and security.
National Pension System (NPS)

Consider increasing your contributions to the NPS. It offers tax benefits and a regular pension post-retirement.
Equity Investments

Gradually increase your equity investments. Equities can provide high returns over the long term, helping you achieve your financial goals.
Debt Funds

Invest in debt funds for stability and regular income. They are less volatile than equities and provide a steady return.
Optimizing Current Savings

Post Office RD and Bank RD Maturity

Once your RDs mature, reinvest the amount in a mix of mutual funds and debt funds. This will provide higher returns and diversification.
Reviewing Real Estate Investments

While real estate can be a good investment, consider its liquidity and return potential. Diversify into more liquid and high-growth options like mutual funds and equities.
Planning for Children's Education

Education Fund

Start a separate education fund for your children. Invest in mutual funds and PPF to accumulate the required corpus.
Insurance and Risk Management

Adequate Insurance

Ensure you have adequate life and health insurance. This protects your family and investments.
Steps to Achieve Your Goal

Increase Monthly SIPs

After your RDs mature, redirect those amounts to mutual funds. Increase your SIP contributions to Rs. 30,000-40,000 per month.
Rebalance Portfolio

Regularly review and rebalance your portfolio with a Certified Financial Planner. This ensures alignment with your financial goals and market conditions.
Emergency Fund

Maintain an emergency fund of 6-12 months of expenses. This provides a safety net for unexpected situations.
Final Insights

Your current investments are a good start, but diversification is key. Increase your SIP contributions, invest in PPF and NPS, and consider more equity and debt funds. Regularly review your portfolio with a Certified Financial Planner. This balanced approach will help you achieve your goal of Rs. 2 crores in 12 years.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5283 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 17, 2024Hindi
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Thankyou for the indepth analysis and encouragement.. im planning to do my sip's in a manner of increasing investment by 15 percent every year .. is it better to do a sip on a mutual fund or begin a tailor-made education policy for an amount of 1 crore for my childs education, within the next 15 years sir? If yes, plz do mention the name of funds, i will do more research
Ans: You have a noble goal to secure your child's education. Increasing SIP investments by 15% annually is a wise approach.

Systematic Investment Plan (SIP)
SIPs in mutual funds can offer substantial growth over time.

Benefits of SIPs
Compounding: Regular investments compound over time. This leads to exponential growth.

Rupee Cost Averaging: Investing a fixed amount regularly reduces the impact of market volatility.

Flexibility: You can start with a small amount and increase it. This matches your plan to increase investments by 15% yearly.

Liquidity: Mutual funds offer easy liquidity. You can withdraw funds when needed for your child's education.

Professional Management: Actively managed funds have professional fund managers. They aim to outperform the market.

Disadvantages of SIPs
Market Risk: SIPs are subject to market risks. However, long-term investments typically smooth out these risks.
Education Policy
Education policies are often insurance products combined with investment.

Benefits of Education Policy
Guaranteed Returns: They offer guaranteed returns. This provides a sense of security.

Insurance Coverage: They often include insurance. This can be beneficial in case of unforeseen circumstances.

Disadvantages of Education Policy
Lower Returns: Returns are usually lower compared to mutual funds. This affects the overall growth of your investment.

Less Flexibility: These policies are less flexible. Early withdrawal may incur penalties.

High Costs: They come with higher costs and charges. This reduces the net returns.

Why SIPs are Better
Higher Returns: Mutual funds, especially equity funds, offer higher returns. This helps in achieving the 1 crore goal faster.

Flexibility and Liquidity: SIPs provide flexibility in investments. They also offer easy liquidity when needed.

Professional Management: Actively managed funds can outperform market indices. This leads to better growth.

Investing Through a Certified Financial Planner
Professional Guidance: A CFP can guide you to choose the best mutual funds. They provide valuable insights and manage your investments.

Regular Funds: Investing through a CFP offers advisory services. Direct funds lack this professional guidance.

Disadvantages of Direct Funds
Lack of Advice: Direct funds do not offer advisory services. This can lead to mismanagement of funds.

Higher Effort: Managing direct funds requires more effort and knowledge. It may not be suitable for everyone.

Avoid Index Funds
Disadvantages: Index funds simply mimic the market. They lack professional management.

Lower Returns: Actively managed funds often outperform index funds. Fund managers adjust for market conditions.

Final Insights
Increasing SIP investments by 15% annually is a wise decision. SIPs in mutual funds offer higher returns, flexibility, and professional management. Education policies, while secure, provide lower returns and less flexibility. Consult a Certified Financial Planner for personalized advice. They can help create a tailored plan to achieve your goal of 1 crore for your child's education.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...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.

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