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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 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
acs Question by acs on May 12, 2024Hindi
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Respectedsir???? .I am retired person.aged 63 yrs and having 10 lac rs at hand to invest, kindly advice to make corpus of 1 cr . Thanks . ------ K R shriwas

Ans: Dear Mr. Shriwas,

Congratulations on your retirement! It's commendable that you're proactively seeking ways to grow your wealth even after retirement. Let's explore the best investment options to help you achieve your goal of building a corpus of 1 crore.

Your commitment to securing your financial future, even after retirement, is truly inspiring and reflects your proactive approach towards wealth management.

Analyzing Investment Options
Assessing Your Situation:
Current Capital:

With 10 lakh rupees at hand, you have a solid foundation to start building your retirement corpus.
Goal:

Your objective of accumulating 1 crore rupees is ambitious but achievable with the right investment strategy and time horizon.
Investment Recommendations
Diversified Investment Approach:
Equity Mutual Funds:

Consider investing a portion of your capital in equity mutual funds to harness the potential for long-term growth. However, given your age, opt for large-cap or balanced funds to minimize risk.
Debt Instruments:

Allocate a significant portion of your investment to debt instruments such as fixed deposits, bonds, or debt mutual funds. These provide stability and regular income.
Systematic Investment Plan (SIP):

Opt for SIPs in mutual funds to benefit from rupee-cost averaging and disciplined investing. This approach reduces the impact of market volatility over time.
Risk Management Strategies:
Diversification:

Spread your investments across multiple asset classes to mitigate risk. A balanced mix of equity and debt instruments can provide stability while aiming for growth.
Regular Review:

Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk tolerance. Rebalance your portfolio if necessary to maintain optimal asset allocation.
Conclusion
With a well-thought-out investment strategy and disciplined approach, you can work towards achieving your goal of building a corpus of 1 crore rupees for your retirement. Remember to consult with a Certified Financial Planner to tailor an investment plan that suits your unique financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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Sir please suggest amount as well as mutual fund for 15 years to generate corpus of 1cr
Ans: To generate a corpus of 1 crore in 15 years, you'll need to invest a significant amount regularly and choose suitable mutual funds with growth potential. Here's a suggested approach:

Determine Investment Amount: Considering your goal of accumulating 1 crore in 15 years, you'll need to calculate the monthly investment required based on expected returns. Assuming an average annual return of around 10%, you'll need to invest approximately 30,000 INR per month.
Select Mutual Funds: Choose a mix of equity mutual funds that offer potential for capital appreciation over the long term. Consider allocating your investments across large-cap, mid-cap, and multicap funds to diversify risk and maximize returns. Look for funds with a consistent track record of performance, experienced fund managers, and a robust investment strategy.
Allocate Funds: Divide your monthly investment amount of 30,000 INR among different mutual funds based on your risk tolerance and investment goals. For example, you could allocate 40-50% to large-cap funds, 30-40% to mid-cap funds, and 10-20% to multicap funds.
Regular Monitoring: Regularly review the performance of your mutual funds and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals. Stay disciplined and committed to your investment plan to achieve your target corpus of 1 crore in 15 years.
Consult a Financial Advisor: Consider seeking advice from a Certified Financial Planner who can provide personalized recommendations based on your financial situation, risk profile, and investment objectives. They can help you create a customized investment plan and guide you towards achieving your long-term financial goals.
By following these steps and staying disciplined with your investments, you can work towards building a substantial corpus of 1 crore over the next 15 years. Remember, consistency, patience, and informed decision-making are key to successful long-term wealth creation.

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Hello Nikunj Sir, I am 46 years old govt salaried person and I looking to build a corpus of around 30 lacs. Pls guide or suggest me best funds.
Ans: Building a corpus of 30 lakhs is a feasible goal with disciplined investing over time. Considering your age and risk tolerance, here are some recommendations for mutual funds:
1. Large Cap Funds: These funds invest predominantly in large-cap stocks, offering stability and steady growth potential over the long term. They are suitable for conservative investors looking for lower risk exposure.
2. Balanced Funds: Also known as hybrid funds, these invest in a mix of equity and debt instruments, providing a balance between growth and stability. They can be suitable for investors seeking moderate risk exposure with the potential for capital appreciation.
3. Multi-Cap Funds: These funds invest across market capitalizations, including large-cap, mid-cap, and small-cap stocks. They offer diversification and the flexibility to adapt to changing market conditions, making them suitable for investors with a moderate risk appetite.
4. Debt Funds: These funds invest in fixed-income securities such as government bonds, corporate bonds, and money market instruments. They provide stability and regular income, making them suitable for conservative investors or those with a shorter time horizon.
Benefits of Actively Managed Funds:
1. Expertise of Fund Managers: Actively managed funds are overseen by experienced fund managers who analyze market trends, economic indicators, and company fundamentals to make informed investment decisions. Their expertise can potentially result in outperformance compared to passive index funds.
2. Flexibility and Customization: Actively managed funds have the flexibility to adapt to changing market conditions and capitalize on emerging opportunities. Fund managers can adjust portfolio allocations, sector exposure, and stock selection based on their market outlook and investment objectives.
3. Potential for Outperformance: Actively managed funds aim to generate alpha, or excess returns, by actively selecting securities that they believe will outperform the market. Through diligent research and analysis, fund managers seek to identify undervalued assets and capitalize on market inefficiencies to achieve superior returns for investors.
By considering these factors and consulting with a certified financial planner, you can build a well-diversified investment portfolio tailored to your financial goals and risk tolerance.

Best Regards,
K. Ramalingam, MBA, CFP,
Certified Financial Planner
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 04, 2024

Money
Hello sir, I am 38 years old.. I have a daughter of 9 year..my net monthly income is 1.27 lacs after payment of rs. 25000 of my home loan emi. I have a home loan of outstanding 26 lacs. I have around 45 lacs in mutual fund, 15 lacs in bank FD, 28 lacs in life insurance policies and 16 lacs in daughter's sukanya samriddhi account. I want to create a corpus of rs. 10 cr in next 10 years.. please guide
Ans: Creating a corpus of Rs. 10 crores in the next 10 years is an ambitious but achievable goal. Let's analyze your current financial situation and create a detailed plan to help you reach your objective.

Current Financial Snapshot
Income and Expenses:

Monthly Income: Rs. 1.27 lakh
Home Loan EMI: Rs. 25,000
Net Monthly Income after EMI: Rs. 1.02 lakh
Existing Investments:

Mutual Funds: Rs. 45 lakh
Fixed Deposits: Rs. 15 lakh
Life Insurance Policies: Rs. 28 lakh
Sukanya Samriddhi Account: Rs. 16 lakh
Home Loan Outstanding:

Rs. 26 lakh
Strategy to Achieve Rs. 10 Crores in 10 Years
Step 1: Enhance Savings and Investments
Evaluate Monthly Savings:

With a net income of Rs. 1.02 lakh after EMI, you should aim to save and invest a significant portion.
Assume you save 50% of this amount, which is Rs. 51,000 per month.
Systematic Investment Plans (SIPs):

SIPs are a disciplined way to invest regularly in mutual funds.
Allocate Rs. 51,000 per month towards SIPs in a diversified portfolio of equity mutual funds.
Increase your SIP amount by 10% each year to account for salary increments and inflation.
Step 2: Diversify Your Investments
Mutual Funds:

Continue investing in a mix of large-cap, mid-cap, and small-cap equity mutual funds.
Consider adding sector-specific funds for more growth opportunities.
Hybrid Funds:

Allocate a portion to aggressive hybrid funds for a balanced risk-return profile.
These funds invest in both equity and debt instruments.
Debt Funds:

Maintain some investments in debt mutual funds for stability and lower risk.
Debt funds can provide liquidity and reduce overall portfolio volatility.
Step 3: Optimize Existing Investments
Fixed Deposits:

FDs offer low returns. Gradually move funds from FDs to higher-yielding investments.
Keep a small portion in FDs for emergency funds.
Life Insurance Policies:

Evaluate the performance and returns of your life insurance policies.
If they are not performing well, consider surrendering or partially withdrawing and reinvesting in mutual funds.
Sukanya Samriddhi Account:

Continue contributing to your daughter’s Sukanya Samriddhi Account.
It offers tax benefits and good returns, securing her future.
Step 4: Accelerate Debt Repayment
Home Loan:

Consider prepaying your home loan with surplus funds to reduce interest burden.
Aim to be debt-free sooner, freeing up more money for investments.
Step 5: Plan for Tax Efficiency
Tax-Advantaged Investments:

Utilize tax-saving mutual funds (ELSS) for long-term capital gains and tax deductions.
Maximize contributions to PF and PPF for tax benefits and stable returns.
Step 6: Monitor and Rebalance Portfolio
Regular Reviews:

Conduct quarterly reviews of your investment portfolio.
Rebalance to maintain desired asset allocation and capture market opportunities.
Stay Informed:

Keep yourself updated with market trends and financial news.
Consult with a Certified Financial Planner for professional guidance.
Understanding Mutual Funds: Categories, Advantages, and Risks
Equity Mutual Funds:

Invest in stocks, offering high returns but with higher risk.
Ideal for long-term goals like retirement and wealth creation.
Categories: Large-cap, mid-cap, small-cap, sector-specific.
Hybrid Mutual Funds:

Mix of equity and debt investments, balancing risk and return.
Suitable for moderate risk-takers.
Debt Mutual Funds:

Invest in fixed-income securities, offering stability and lower risk.
Suitable for conservative investors and short-term goals.
Advantages of Mutual Funds:

Diversification reduces risk by investing in various securities.
Professional management by experienced fund managers.
Liquidity allows easy buying and selling of units.
SIPs promote disciplined investing and cost averaging.
Tax benefits through ELSS funds.
Risks of Mutual Funds:

Market risk affects equity funds due to market fluctuations.
Credit risk in debt funds if issuers default.
Interest rate risk impacts debt funds with changing rates.
Liquidity risk in some funds, making it hard to sell holdings without losses.
Power of Compounding
Compounding is earning returns on both initial principal and accumulated returns.
Longer investment duration amplifies the compounding effect.
Start early and stay invested for maximum benefits.
Disadvantages of Direct Funds
Direct Funds:

Bought directly from fund houses, saving on distributor commissions.
Lower expense ratios but lack guidance from professionals.
Disadvantages:

No expert advice, leading to suboptimal choices.
Time-consuming and requires significant effort.
Risk of mismanagement without professional guidance.
Benefits of Regular Funds through MFD with CFP Credential:

Expert advice and professional management.
Customized portfolios based on goals and risk tolerance.
Ongoing support and regular portfolio reviews.
Peace of mind knowing investments are managed by professionals.
Action Plan to Achieve Rs. 10 Crore Goal
Enhance Monthly Savings:

Save and invest Rs. 51,000 per month in diversified mutual funds.
Increase SIPs by 10% annually.
Diversify Investments:

Continue with equity mutual funds, adding sector-specific and hybrid funds.
Maintain some debt funds for stability.
Optimize Existing Investments:

Move funds from FDs to higher-yielding investments.
Evaluate and possibly reinvest insurance policies in mutual funds.
Accelerate Debt Repayment:

Prepay home loan to reduce interest burden and free up funds.
Plan for Tax Efficiency:

Utilize ELSS, PF, and PPF for tax benefits and stable returns.
Regularly Review and Rebalance Portfolio:

Conduct quarterly reviews and rebalance as needed.
Stay informed about market trends and seek professional advice.
Final Insights
Achieving a corpus of Rs. 10 crores in 10 years requires disciplined saving, smart investing, and regular portfolio management. Diversify your investments, optimize existing assets, and aim for tax efficiency. Prepay your home loan to reduce debt burden and free up funds for investments. Stay committed to your SIPs, increase them annually, and regularly review your portfolio. Seek guidance from a Certified Financial Planner for professional advice and peace of mind. By following this comprehensive plan, you can achieve your financial goal and secure your family's future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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