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Vivek

Vivek Lala  |301 Answers  |Ask -

Tax, MF Expert - Answered on Mar 24, 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
Krishnamurthy Question by Krishnamurthy on Nov 29, 2023Hindi
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I have Rs. 10 lakhs that I can invest for three years and a further Rs. 5 lakhs that I need after one year. I am looking for safe but better than bank fixed deposit return. Can you kindly give specific suggestions?

Ans: Risk and return are directly related. Less risk = less return and vice versa
So if you want more returns than FD then you will be adding more risk to your portfolio
Since liquidity is most important in your case , you should stick to less risk and for the 5L you can add some debt funds and take the advantage if the rate of interest falls

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.
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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Moneywize

Moneywize   |174 Answers  |Ask -

Financial Planner - Answered on Feb 03, 2024

Asked by Anonymous - Feb 02, 2024Hindi
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I have Rs 3.5 lakh and want to invest this amount for a period of 5 years. I can take low to moderate risk. What options would you suggest for me? I am expecting only moderate returns of up to 15-18% for my investments. What would you suggest for me if I want say higher returns in the range of 20-25%?
Ans: For a 5-year investment horizon with a preference for low to moderate risk, it's important to consider a well-diversified portfolio to balance potential returns and risks.

Here are some investment options based on your risk preferences:

• Low to Moderate Risk (Expecting returns of 15-18%):

1. Equity Mutual Funds:

Opt for large-cap or multi-cap equity mutual funds. These funds provide exposure to well-established companies and offer the potential for moderate returns. Choose funds with a consistent track record and a focus on risk management.

2. Balanced Funds:

Balanced funds, also known as hybrid funds, invest in a mix of equities and debt instruments. They provide a balance between growth and stability, making them suitable for investors with a moderate risk appetite.

3. Debt Mutual Funds:

Consider allocating a portion of your investment to debt mutual funds, particularly short to medium-term funds. These funds invest in fixed-income securities and can provide stable returns with lower volatility compared to equities.

4. Fixed Deposits (FDs):

Bank fixed deposits and corporate FDs offer capital protection and a fixed rate of return. While the returns may be relatively lower, they provide a stable and predictable income stream.

• Higher Risk (Expecting returns of 20-25%):

1. Mid and Small-Cap Equity Funds:

If you are willing to take on a higher level of risk, consider mid and small-cap equity funds. These funds invest in smaller companies with higher growth potential but come with increased volatility.

2. Sector-Specific Funds:

Allocate a small portion of your portfolio to sector-specific funds. These funds focus on specific industries like technology, healthcare, or banking, which may offer higher returns but come with sector-specific risks.

3. Unit Linked Insurance Plans (ULIPs):

ULIPs combine insurance with investment and offer the flexibility to invest in equity or debt funds. However, be mindful of the charges associated with ULIPs and thoroughly understand the terms and conditions.

4. Stocks:

Direct equity investment in individual stocks can potentially provide higher returns. However, stock market investments carry higher risk and require a good understanding of the market. Diversify your stock portfolio to manage risk.

5. Systematic Investment Plans (SIPs):

Consider investing in equity mutual funds through Systematic Investment Plans (SIPs). SIPs allow you to invest a fixed amount regularly, promoting disciplined investing and taking advantage of rupee cost averaging.

Before making any investment decisions, carefully assess your financial goals, risk tolerance, and investment horizon. Diversification across different asset classes can help manage risk. It's also advisable to consult with a financial advisor to create a personalised investment strategy based on your specific situation and goals.

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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 10, 2024

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Sir,what is the best secured return where i get monthly pay out into my account for an amount of say 28 lakhs. Can i choose Sriram unnati Fixed deposit (non banking) @ 8.05% for 36 months or FD of Canara bank @ 7.44 % for 444 days. Presently, i am getting 6.88% only in SBI FD Also, if i get some money of say 70 lakh from sale of land, where should i secure invest for the security of my family, where they get recurring income every month with best return.
Ans: Choosing between the Sriram Unnati Fixed Deposit and Canara Bank FD depends on your priorities and risk tolerance:

Sriram Unnati Fixed Deposit: Offers a higher interest rate of 8.05% for 36 months. It provides a relatively higher return but may involve higher risk compared to bank FDs due to being a non-banking institution. You need to ensure thoroughly and research the credibility, repaying capacity and reputation of Sriram Unnati before investing.

Canara Bank FD: Offers a lower interest rate of 7.44% for 444 days but is backed by the safety and security of a nationalized bank. It provides relatively lower returns but offers greater safety and stability.
For the lump sum amount from the sale of land, consider a diversified approach:

Debt Funds: Invest a portion in debt mutual funds, which offer relatively higher returns than traditional bank FDs while maintaining liquidity and stability.

Systematic Withdrawal Plan (SWP): Invest in a mix of debt funds or balanced funds and set up an SWP to receive regular monthly income. This provides flexibility and potentially higher returns than FDs.
Consult with a financial advisor to assess your risk tolerance, financial goals, and investment horizon before making any investment decisions. They can provide personalized recommendations tailored to your needs and help you build a diversified investment portfolio.

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Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

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Iam 38 and have 20 lakhs as my savings which I want to invest for 1,3,5 and 7 years. Please suggest appropriate as I'm willing to take risk but want good returns.
Ans: Investing with specific time horizons in mind is a smart approach. Here's a suggested investment strategy considering your willingness to take risks and aiming for good returns:

1-Year Investment (Short-term):
Liquid Funds: These funds offer stability and liquidity. They invest in short-term money market instruments. Given your short time horizon, liquid funds would be suitable as they offer better returns than savings accounts and are low-risk.
3-Year Investment (Medium-term):
Short-term Debt Funds or Ultra Short-term Funds: These funds invest in fixed-income securities with a maturity period of 1-3 years. They offer relatively higher returns than liquid funds and are less volatile than equity funds, making them a suitable choice for a 3-year horizon.
5-Year Investment (Medium to Long-term):
Balanced Funds or Hybrid Funds: These funds invest in a mix of equity and debt instruments. They offer potential for higher returns compared to debt funds while providing some cushion against market volatility. This combination could be ideal for a 5-year horizon.
7-Year Investment (Long-term):
Equity Mutual Funds: Given your willingness to take risks and the longer time horizon, equity funds would be appropriate.
Large Cap Funds: These funds invest predominantly in large-cap companies which are relatively stable and offer moderate returns.
Mid & Small Cap Funds: These funds invest in mid and small-cap companies which have the potential to offer higher returns but come with higher volatility.
Multi-Cap Funds: These funds provide diversification across market caps and offer flexibility to capitalize on market opportunities.
General Tips:

Diversification: Spread your investments across different asset classes and fund categories to reduce risk.
Regular Review: Periodically review your investments to ensure they align with your financial goals and adjust as necessary.
Risk Tolerance: While you're willing to take risks, ensure your investments align with your risk tolerance. Remember, higher returns come with higher volatility.
Lastly, it's advisable to consult with a Certified Financial Planner to tailor this strategy according to your specific financial situation, goals, and risk tolerance. They can provide personalized advice and help you navigate the complexities of investing.

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Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

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I am engineer with 16 years of IT experience and now a break of 11 yrs. But in 11 yrs I had been taking Quantitative aptitude lectures as a visiting faculty in various engineering and MBA colleges and also done Mutual fund certification. I haven't been siting but doing many things professionally in last 11 yrs(In my subject of interest as Maths, Teaching, Finance, Accounting, Wealth Management). I was thinking of doing ESG certification. What kind of role I would get if i am CFA ESG certified.I am looking for Professionally and intellectually engaging role where I can contribute to Society. Not a very NGO type( I have tried working with few NGO's)
Ans: I won't recommend you to go for ESG certification unless you are having a background of Env. Engg and Environmental Impact Assessment. The certificate course of ESG is costly also. I would request you to open your own academy ( if off line not possible then online) and go for only one subject. Let me know your age.Focus only on one subject. You have explored many areas and now you are perplexed. Here the questions are assigned to me through rediffmail. So second time whether your question will come to me or not is not known to anyone of us. Due to the policy I can’t share my email ID and Phone Number. But I would request you to follow me in LINKEDIN and send request so that I can accept you, then through LINKEDIN I can counsel you in the future multiple times. Through LINKEDIN I will be readily and easily accessible. I have counselled and changed thousands of lives. As long as I am there I won’t allow you to be defeated. Mind that always I am there with you like an invisible shadow to show you the right career path.

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Ravi Mittal  |403 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 08, 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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