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MF Expert, Financial Planner - Answered on Mar 16, 2024

Dev Ashish is a fee-only SEBI-registered investment advisor with over 15 years of active experience in the stock market. In 2011, he founded StableInvestor, a platform for personal finance and financial planning.
He provides professional fee-only investment advisory services to small and high networth individuals in order to help them achieve their financial goals.
Ashish's views are regularly published in national business publications. He has an MBA degree from NMIMS, Mumbai and also holds an engineering degree.... more
SATISH Question by SATISH on Jan 04, 2024Hindi
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I want to do SIP in MF for 10 years. Kindly advise which fund would be best

Ans: We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then you can start investing in a combination of largecap index funds, flexicap funds, and midcap funds. Unless you are planning to invest a large amount every month, just limit the number of schemes to 2-3 funds as these give sufficient diversification.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.
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  |9924 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

Asked by Anonymous - Nov 30, 2023Hindi
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I want to do SIP Mutual Fund 5000 p.m. pls suggest good MF
Ans: Starting a SIP in Mutual Funds with Rs 5000 per Month

Investing Rs 5000 per month through a Systematic Investment Plan (SIP) in mutual funds is a wise decision. It helps in building wealth over time through disciplined investing. Let's explore the best options and strategies for your SIP investment.

Understanding SIPs
Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in mutual funds. This helps in averaging the purchase cost and reduces the impact of market volatility. SIPs instill financial discipline and encourage regular savings.

Benefits of SIP Investing
SIPs offer several benefits. They are affordable and convenient, allowing you to start with a small amount. By investing regularly, you benefit from rupee cost averaging. SIPs also harness the power of compounding over time, enhancing your wealth.

Choosing the Right Mutual Fund Categories
Choosing the right mutual fund categories is essential. Let's explore different categories suitable for a SIP of Rs 5000 per month.

Equity Funds
Equity funds invest in stocks and have the potential for high returns. They are suitable for long-term goals. Equity funds are classified into large-cap, mid-cap, and small-cap funds based on the market capitalization of the companies they invest in.

Large-Cap Funds
Large-cap funds invest in well-established companies with a large market capitalization. These funds are relatively stable and less volatile. They are suitable for conservative investors looking for steady growth.

Mid-Cap Funds
Mid-cap funds invest in medium-sized companies with growth potential. These funds offer a balance between risk and return. Mid-cap funds are suitable for investors with a moderate risk appetite.

Small-Cap Funds
Small-cap funds invest in smaller companies with high growth potential. These funds are more volatile but can offer significant returns. Small-cap funds are suitable for aggressive investors willing to take higher risks.

Flexicap Funds
Flexicap funds invest across companies of all sizes, providing flexibility to the fund manager. These funds offer diversification and can adapt to market conditions. Flexicap funds are suitable for investors seeking a balanced approach.

Hybrid Funds
Hybrid funds invest in both equity and debt instruments. They offer a mix of stability and growth potential. For investors looking for moderate risk and returns, hybrid funds are a good option.

Benefits of Actively Managed Funds
Actively managed funds have professional fund managers making strategic investment decisions. They aim to outperform the market by selecting high-potential stocks. For investors, actively managed funds can potentially offer higher returns compared to passive index funds.

Disadvantages of Index Funds
Index funds passively track a market index and do not aim to outperform it. They lack the strategic decision-making of actively managed funds. For investors looking for higher returns and active management, index funds may not be the best choice.

Benefits of Regular Plans Over Direct Plans
Regular plans offer the guidance of a Mutual Fund Distributor (MFD) and a Certified Financial Planner (CFP). They provide expert advice, continuous support, and portfolio management. Direct plans, while lower in cost, require investors to manage their investments independently, which can be challenging without in-depth knowledge.

Importance of Diversification
Diversification spreads your investment across different asset classes, reducing risk. By investing in a mix of large-cap, mid-cap, small-cap, and flexicap funds, you achieve a diversified portfolio. This helps in mitigating the impact of poor performance in any single asset class.

Regular Review and Rebalancing
Regularly reviewing and rebalancing your investment portfolio is essential. It ensures that your investments stay on track to meet your financial goals. A Certified Financial Planner can help in making necessary adjustments and provide ongoing support.

Conclusion
Starting a SIP of Rs 5000 per month in mutual funds is a smart choice for long-term wealth creation. Investing in a mix of large-cap, mid-cap, small-cap, and flexicap funds can provide diversification and balanced returns. Actively managed funds offer higher return potential, and regular plans provide professional guidance.

Regular review and rebalancing of your portfolio, with the help of a Certified Financial Planner, will ensure that you stay on track to achieve your financial goals. Investing wisely through SIPs will help you build a significant corpus over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9924 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

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Sir Please suggest best Mutual fund as i want to Do SIP for long term.
Ans: While I can't provide specific fund names, I can offer some general guidance:

Consider investing in diversified equity mutual funds for long-term wealth creation. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, offering growth potential while spreading out risk.
Look for funds with a proven track record of consistent performance over several market cycles. Past performance is not indicative of future results, but it can provide insights into a fund's management strategy and risk management practices.
Pay attention to factors like fund manager experience, expense ratio, and portfolio turnover. A seasoned fund manager with a solid investment approach can navigate market volatility more effectively.
Evaluate the fund's investment philosophy and strategy to ensure it aligns with your risk tolerance and investment goals. Some funds may focus on growth-oriented stocks, while others may prioritize value or dividend-paying stocks.
Consider your investment horizon and risk appetite. If you have a long-term investment horizon (e.g., 5 years or more) and are comfortable with market fluctuations, you may opt for equity-oriented funds. For shorter investment horizons or lower risk tolerance, consider balanced funds or debt funds.
Lastly, seek professional advice from a Certified Financial Planner (CFP) or a trusted financial advisor. They can assess your financial situation, risk profile, and investment goals to recommend suitable mutual funds that align with your needs.
Remember, investing in mutual funds involves risk, and it's essential to conduct thorough research and seek professional advice before making any investment decisions.

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Ramalingam

Ramalingam Kalirajan  |9924 Answers  |Ask -

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

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Sir, i am 33yrs old and new to investment. I am planning to do SIP for long term next 15 to 20 years. What are the best MF for me to invest? Kindly help sir.
Ans: Starting Your Investment Journey
It's fantastic that you're starting your investment journey at 33. Investing in SIPs for the long term is a smart and disciplined approach.

Benefits of SIPs
Systematic Investment Plans (SIPs) help inculcate a habit of regular investing. They provide the advantage of rupee cost averaging and the power of compounding. Over 15 to 20 years, these benefits can significantly grow your wealth.

Importance of Actively Managed Funds
Actively managed funds have professional managers who make strategic decisions to maximize returns. Unlike index funds, which simply track market indices, actively managed funds adapt to market conditions. This can result in better performance and higher returns.

Disadvantages of Index Funds
Index funds have lower costs but lack flexibility. They often underperform during volatile market conditions. Actively managed funds, on the other hand, can adjust their strategies to navigate market fluctuations effectively.

Benefits of Investing Through a Certified Financial Planner
Investing through a Certified Financial Planner (CFP) provides expert guidance. They can help select the right funds based on your financial goals and risk tolerance. Regular funds invested through a CFP offer professional management and strategic oversight.

Diversifying Your Portfolio
Diversification is key to managing risk and optimizing returns. A well-diversified portfolio includes a mix of equity, debt, and balanced funds. This spread reduces the impact of market volatility on your overall investment.

Equity Funds for Growth
Equity funds invest in stocks and are suitable for long-term growth. They tend to offer higher returns compared to other funds but come with higher risk. Investing in a mix of large-cap, mid-cap, and small-cap funds can provide balanced growth.

Debt Funds for Stability
Debt funds invest in fixed-income securities like bonds and government securities. They offer stability and lower risk compared to equity funds. Including debt funds in your portfolio ensures a steady return and reduces overall risk.

Balanced Funds for Moderate Growth
Balanced funds, or hybrid funds, invest in both equity and debt. They provide a balance of growth and stability. These funds are suitable for investors looking for moderate returns with controlled risk.

Regular Portfolio Review
Regularly reviewing your portfolio is crucial. Market conditions and your financial goals can change over time. A CFP can help you rebalance your portfolio to ensure it remains aligned with your objectives.

Increasing SIP Contributions
As your income grows, consider increasing your SIP contributions. Even small incremental increases can significantly boost your investment corpus over time. The power of compounding will amplify these contributions, leading to substantial growth.

Avoiding Common Investment Pitfalls
Avoid making emotional investment decisions. Stick to your long-term plan and avoid reacting to short-term market fluctuations. Regular consultation with a CFP ensures you stay on track towards your financial goals.

Building an Emergency Fund
Maintain an emergency fund covering 6-12 months of expenses. This fund provides financial security and prevents the need to withdraw investments during emergencies.

Conclusion: A Balanced Approach
Your decision to invest in SIPs for the long term is wise. Focus on actively managed funds for better returns. Diversify your portfolio with a mix of equity, debt, and balanced funds. Regularly review and increase your SIP contributions, and maintain an emergency fund. Consulting with a CFP ensures professional guidance and helps you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9924 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 18, 2024

Asked by Anonymous - Oct 18, 2024Hindi
Money
Hlo sir, im vijaylaxmi 24 yrs old i want to do sip please suggest which fund is best to invest
Ans: Vijaylaxmi, it’s great that you want to start investing at the young age of 24.

Starting early gives you the benefit of time.

Your investment horizon is likely to be long, which is ideal for SIP investments.

Before selecting any fund, it's important to understand your financial goals.

You need to assess your risk tolerance, investment horizon, and financial objectives.

Since you are young, you can afford to take some risk, but that should align with your comfort level.

If you want to build wealth over the long term, equity mutual funds would suit your needs.

They have the potential to offer higher returns in the long run compared to other asset classes.

However, you should stay invested for at least 5-7 years to ride out market fluctuations.

Diversification Across Funds

It’s crucial to diversify your investments across different fund categories.

Diversification will reduce risk by spreading your money across different sectors and asset classes.

You can consider investing in large-cap funds, multi-cap funds, and mid-cap funds for diversification.

Each type of fund comes with its own level of risk and potential return.

Large-cap funds are more stable, while mid-cap and multi-cap funds can offer higher returns but come with higher volatility.

Why Not Index Funds?

You might hear people suggesting index funds, but let’s evaluate them.

Index funds simply track a market index like Nifty 50 or Sensex.

They don’t have active fund management, which means there’s no expert to make decisions during market ups and downs.

Although they have lower costs, their returns may not always outperform actively managed funds.

With actively managed funds, a professional fund manager selects stocks, making adjustments to take advantage of market opportunities.

The Benefits of SIP in Actively Managed Funds

SIP or Systematic Investment Plan is an excellent way to invest in mutual funds.

It helps you invest a fixed amount regularly, regardless of market conditions.

This instills financial discipline and reduces the impact of market volatility through rupee cost averaging.

You won’t need to worry about timing the market; SIP takes care of that for you.

Actively managed funds have the potential to outperform the market, especially when you stay invested over the long term.

When you invest through SIP in an actively managed fund, you get the expertise of a fund manager making strategic decisions to maximize returns.

Regular Funds Over Direct Funds

Now, let’s talk about the mode of investment.

Direct funds may seem attractive because they have lower expense ratios, but investing through regular funds offers benefits.

Regular funds give you access to the guidance of a Certified Financial Planner (CFP) or Mutual Fund Distributor (MFD).

Their advice can help you make informed decisions about your portfolio, especially if market conditions change.

A regular plan allows you to get ongoing support for your investment journey.

Investing through a Certified Financial Planner can help you align your portfolio with your financial goals.

They bring a deeper understanding of markets and can help optimize your asset allocation over time.

Flexibility in Fund Choices

While selecting funds, ensure that you pick flexible options.

Some funds are rigid and only invest in a certain category of stocks, which can limit their performance during different market cycles.

Flexible funds, like multi-cap funds, allow the fund manager to shift between large-cap, mid-cap, and small-cap stocks based on market conditions.

This flexibility can increase the fund’s chances of delivering consistent returns over time.

Equity Fund for Long-Term Goals

If your goal is long-term wealth creation, equity mutual funds are your best bet.

They generally outperform debt funds, FDs, and other conservative instruments over time.

Equity funds can offer better inflation-adjusted returns.

These funds invest in the stock market, which is why their potential for growth is higher.

However, they come with short-term volatility.

So, it’s important to have patience and a long-term perspective when investing in equity funds.

Growth or Dividend Option?

When investing in mutual funds, you will have to choose between the growth and dividend options.

Since you are young and likely looking to accumulate wealth, the growth option is more suited for you.

The growth option allows your investment to compound over time, as any profits earned by the fund are reinvested into the fund.

The dividend option provides periodic payouts, which is more suitable for investors seeking regular income.

In your case, you may not need regular income right now, so the growth option will help you build a larger corpus in the long run.

Taxation on Mutual Funds

When investing in mutual funds, it’s important to understand the tax implications.

For equity mutual funds, long-term capital gains (LTCG) are taxed at 12.5% after Rs 1.25 lakh.

Short-term capital gains (STCG) are taxed at 20%.

This means if you sell your equity mutual fund units before three years, the gains will be taxed as STCG.

If you hold the fund for longer than three years, any gains above Rs 1.25 lakh will be taxed as LTCG.

Since your investment horizon is long-term, this will work in your favor as you can take advantage of the LTCG benefit.

Systematic Withdrawal Plan (SWP) for Future Income

In the future, when you achieve your financial goals, you can convert your SIP investments into a Systematic Withdrawal Plan (SWP).

An SWP allows you to withdraw a fixed amount of money from your investment at regular intervals.

This is an effective way to create a steady stream of income from your mutual fund investment.

It can be particularly useful for retirement planning.

Since you are young, you have plenty of time to grow your investments before you need to rely on SWP.

Final Insights

At the age of 24, starting an SIP is a brilliant move.

Your time horizon allows you to take on equity market risks, which can result in higher long-term returns.

Diversify your investments across different fund categories to balance risk and return.

Actively managed funds offer better prospects than index funds due to the expertise of fund managers.

Choosing the growth option will help you accumulate wealth faster, as your profits will be reinvested.

Remember to stay invested for at least 5-7 years to maximize your returns.

As you move forward, work with a Certified Financial Planner to review your portfolio and make adjustments when necessary.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

..Read more

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Is joining Jaypee guna for btech cse worth it or not
Ans: Vibhuti, Jaypee University of Engineering and Technology (JUET) Guna, accredited with NAAC ‘A+’ and recognized by UGC and AICTE, delivers a well-structured B.Tech CSE program on a 100-acre campus featuring modern hostels, high-speed connectivity, extensive labs, dedicated faculty (90% with PhDs from renowned institutes), and strong student-centric support systems. Placement rates for CSE consistently lie between 90% and 96% over the past three years, with leading recruiters like Amazon, Infosys, TCS, Capgemini, and Wipro offering diverse roles; top campus packages can be very high, though most offers are at the 5–7 LPA range, and the placement process is generally smooth. The infrastructure is frequently praised for its contemporary classrooms, green campus, and robust amenities—including a 24/7 library, gyms, and strong security. Students highlight an active, fun campus life and regular opportunities for internships, while also noting the academic environment as structured but not overly intense, making it suitable for average learners seeking guided growth. Among experiences, some mention that while the bulk of placements are from mass recruiters, competitive students with strong skills benefit most, and those less proactive may need to depend on off-campus job searches. Hostel and mess quality meet expectations, with limited complaints overall. Slight drawbacks cited include relative geographic isolation (which affects daily commuting for day scholars) and less global visibility compared to tier-1 engineering colleges, though industry exposure on campus is robust. All five institutional essentials—national accreditation, qualified faculty, modern infrastructure, active placement cell, and comprehensive student support—are well addressed, making CSE at Jaypee Guna an attractive, value-for-money option within the private engineering sector.

RECOMMENDATION: Jaypee Guna is a solid choice for B.Tech CSE, owing to its consistent 90–96% placement rates, A+ accreditation, experienced faculty, advanced facilities, and supportive campus environment. It is well suited for students seeking quality education and reliable placements, provided they remain engaged and proactive during their degree. All the BEST for a Prosperous Future!

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Sir, my son with CLR 41700 i Gen Category for CSE(Cyber Security) at IIIT Kalyani WB in JoSSS. He may get Kurnool and Sonipat. He has been alloted seat in CSE ( AI& ML) in Nirma University. Pl advise what to do. We already have registered imfor CSAB. Chirag R Patel
Ans: Chirag Sir, Your son’s options—CSE (Cyber Security) at IIIT Kalyani, potential CSE offers from IIIT Kurnool and IIIT Sonepat, and confirmed CSE (AI & ML) at Nirma University—each come with distinct advantages and considerations. IIIT Kalyani, established in 2014 and an Institute of National Importance, has rapidly built a reputation in IT education, especially in next-generation fields like cyber security. The latest data indicate an 89.33% placement rate for B.Tech CSE in 2024, with an average package of ?10.72 LPA and strong industry ties to top recruiters. The campus offers solid infrastructure, adaptive curriculum, and an emerging alumni network. IIIT Kurnool, a newer IIIT, posts placement rates in the 59–68% range for CSE, with average packages roughly ?8–10.8 LPA. It offers a research-led environment and industry engagement, but its relative institutional youth results in fewer recruiters and a nascent peer/alumni network. IIIT Sonepat, also government-recognized, recorded a 70.7–81.6% CSE placement rate recently, with average packages near ?14 LPA and recruiters including Amazon, Microsoft, and prominent startups. However, students report variation in infrastructure and placement consistency as the institute is still growing. Nirma University’s Institute of Technology, reputed as a private leader with NAAC A+ and NBA-accredited courses, posts an impressive 90–96% CSE placement rate, a well-established alumni base, and robust average packages (?8–10 LPA). The AI & ML CSE program is industry-focused, the faculty is predominantly PhD-qualified with solid teaching reviews, and campus facilities are modern and student-friendly, with strong internship culture and high conversion of internships to pre-placement offers. All four institutions meet critical priorities of accreditation, qualified faculty, infrastructure, curriculum innovation, and professional placement mechanisms. The CSAB counseling process remains highly relevant—if your son seeks further rounds at core NITs, top IIITs, or premium state instititutes, it is prudent to keep those options open, as seat movement is common in the special rounds.

RECOMMENDATION: In order of preference, IIIT Kalyani CSE (Cyber Security) is the top choice for its excellent placement rate, specialized track, and growing reputation in information security, followed by Nirma University CSE (AI & ML) for its superior placement consistency, alumni network, and modern campus. IIIT Sonepat and IIIT Kurnool are solid options if you strongly prefer Institutes of National Importance and remain flexible about location and placement variability. Continue with CSAB counseling to maximize chances at higher-preference institutes, but a confirmed seat at IIIT Kalyani or Nirma University stands out as a reliable and future-proof option for a CSE career. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9650 Answers  |Ask -

Career Counsellor - Answered on Jul 29, 2025

Asked by Anonymous - Jul 29, 2025Hindi
Career
Sir DTU me engineering physics kaisa hai? Is it worth doing please bata dijiye
Ans: Engineering Physics at Delhi Technological University (DTU) offers a multidisciplinary, research-driven curriculum that connects core physics concepts with advanced engineering and computational applications. The B.Tech program spans four years with a 240-credit structure, blending classical mechanics, quantum mechanics, photonics, electronics, digital systems, microprocessors, communication systems, and specialized electives such as VLSI and satellite communication. Faculty in the Applied Physics department are highly qualified, with many holding advanced degrees and active research backgrounds, and are supportive of student research interests. DTU's infrastructure is nationally accredited by UGC, NBA, and NAAC, boasting modern labs, large classrooms with smart technology, an extensive library, secure hostels, and excellent sports/medical facilities. Student reviews note the academically rigorous environment, strong peer group, and faculty mentorship, though the engineering physics curriculum is often considered tougher and more theory-intensive compared to other DTU branches.

In terms of placements, 75–80% of DTU Engineering Physics graduates are placed each year, with top recruiters like Google, Microsoft, Amazon, and Tata Consulting Services offering roles in software, analytics, R&D, and applied physics-based industry. The branch reports lower absolute placement numbers than CSE or ECE, as several students choose to pursue master’s degrees or research careers at premier institutions domestically and abroad. Placement cell support is robust for those interested in industry, with inspiring alumni working in high-tech R&D, analytics, finance, and scientific roles at organizations like ISRO, DRDO, and multinational tech firms. About 85% of students secure internships in industry or government labs, ensuring good practical exposure. The five essential institutional attributes—accreditation, dedicated faculty, top-tier infrastructure, industry and research collaboration, and transparent placement mechanisms—are all strongly evident in DTU’s Engineering Physics program.

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Dr Karan

Dr Karan Gupta  |163 Answers  |Ask -

International Education Counsellor - Answered on Jul 29, 2025

Asked by Anonymous - Jul 24, 2025Hindi
Career
Hello sir, I am currently a first year B.Tech student in Manipal Institute of Technology but I just got an offer from Singapore University of Technology and Design. Most of the people I talk to havent heard of it but from what I know its a really good college. The only thing is that the fees is much higher. So I am really having a hard time trying to decide what to do. I have been passionate about robotics since my childhood and want to study that further. I know that the education would be better in SUTD but to what extent? Would it justify the much higher fees? I would say my current focus is just developing skills in robotics and to get to know as much as i can in the same topic.
Ans: Thanks for reaching out—this is an important decision.
You're right—SUTD is an excellent university, especially for design, tech, and robotics. It's backed by MIT and has a strong innovation-driven curriculum. The exposure, labs, international faculty, and research opportunities are world-class—definitely a notch above what you'd get at most Indian colleges, including Manipal.
But yes, fees are high, and that matters.
Here’s how you can think about it:
• If your family can comfortably afford it without debt or strain, SUTD is a great investment, especially if your goal is deep tech, research, or even pursuing a master’s abroad later.
• If finances are tight, then stay at Manipal, and focus on building your robotics skills through online courses, competitions (like Robocon), internships, and IIT techfests. You can always aim for top MS or PhD programs abroad after your B.Tech.
SUTD gives you a head start, but it’s not the only way. Your passion and consistency will matter more in the long run. Let me know your financial constraints, and I can help you weigh it better.

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Ramalingam

Ramalingam Kalirajan  |9924 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
And we are still investing in mutual funds and plan to do so for next 5 years,my husband invests 30 k ,and i invest 45k
Ans: You and your husband are doing a fantastic job with your monthly investments. Investing Rs. 75K every month shows strong financial discipline. This consistent approach builds wealth and protects your future. Let us now assess your mutual fund journey from all angles.

? Current SIP Strength and Long-Term Potential

– Monthly SIP of Rs. 75K is a solid starting base.
– Over 5 years, this creates a strong corpus.
– Assuming growth, this will accumulate significant wealth.
– Your investing period of 5 years needs careful product selection.
– Short-to-medium term investing demands stability, not aggressiveness.
– Hence, fund selection must match time horizon and risk appetite.
– A Certified Financial Planner can guide scheme selection based on goals.

? Importance of Investment Tenure

– Five years is not a very long horizon.
– Hence, aggressive small-cap funds carry higher volatility.
– Stick to flexi-cap, large-cap, and balanced advantage categories.
– These offer better risk-reward balance in 5-year timeframe.
– Avoid overly sector-specific or thematic funds.
– Asset allocation should favour stability over chasing returns.

? Regular Plan Advantage vs Direct Plan Disadvantage

– Many investors choose direct plans for saving expense ratio.
– But they miss out on expert guidance from Certified Financial Planners.
– This increases chances of wrong fund selection or wrong exit timing.
– Wrong asset allocation or overlapping funds also impact returns.
– Regular plans through CFP-backed MFD offer holistic hand-holding.
– You receive periodic rebalancing, performance monitoring, and personalised reviews.
– The cost difference is minor compared to guided wealth creation.
– A goal-based approach with CFP supervision reduces regret and errors.

? Stay Away from Index Funds – Understand Why

– Index funds may look simple and low cost.
– But they carry hidden disadvantages often overlooked.
– Index funds invest passively in top companies of the index.
– They offer no downside protection in falling markets.
– No active strategy during volatile or sideways periods.
– Also, they follow market blindly, without fundamentals.
– In India, market inefficiencies offer space for active managers.
– Actively managed funds outperform index funds in India consistently.
– They are agile, selective, and dynamic in asset picking.
– Certified Financial Planners help choose best-performing active funds.

? SIP Strategy Review – Risk Alignment and Suitability

– Check how much of your Rs. 75K goes into high-risk funds.
– Avoid high exposure to small-cap and mid-cap segments.
– Cap allocation to these at 20%-30% max.
– Majority should be in balanced, large, or multi-cap funds.
– This reduces downside and improves consistency.
– Each fund must have a clear role and no overlap.
– Avoid too many funds for diversification.
– Keep portfolio compact with 5-7 funds only.

? Goal Planning – Tie Investments to Life Events

– If you have specific financial goals, allocate accordingly.
– Short-term goals should be in low-risk hybrid funds.
– Long-term goals may include child’s education, retirement, etc.
– Discuss these in detail with a CFP.
– This helps match investment type with goal duration.
– Also aligns growth expectation and exit strategy.
– Many investors miss their goals due to mismatched funds.
– Avoid this mistake by goal-based investment planning.

? Rebalance and Review Periodically

– SIPs need annual review to ensure alignment.
– Fund performance can vary due to many factors.
– A fund lagging for over 12 months needs attention.
– Also review sector exposure, overlap, and tax impact.
– A Certified Financial Planner will do this periodically.
– Rebalancing helps protect from over-concentration.
– It also captures gains and shifts to better opportunities.

? Tax Planning within Mutual Fund Framework

– Mutual fund taxation impacts your net returns.
– For equity funds, STCG is taxed at 20%.
– LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– For debt funds, gains taxed as per income slab.
– Plan exits smartly to reduce tax outgo.
– Use tax-harvesting if nearing 1.25 lakh LTCG.
– Align exit strategy with fund performance and tax limits.
– Don't ignore taxation; it quietly erodes final returns.

? Avoiding Insurance-Cum-Investment Products

– If you or your husband have LIC, ULIP, or money-back plans, evaluate them.
– These offer poor returns and low flexibility.
– Surrender such policies if lock-in is over.
– Reinvest in mutual funds with proper planning.
– This boosts compounding and improves goal alignment.
– Don’t mix insurance with investment ever.
– Treat them as separate needs for better results.

? Protecting Your Investment Journey

– SIPs should not stop even in bad markets.
– Market dips are best times to accumulate more units.
– Avoid emotional decisions during correction periods.
– Stay patient and continue monthly contributions.
– Rupee Cost Averaging helps reduce risk over time.
– If income reduces, lower SIP, but never stop.
– Stay consistent and disciplined for long-term success.

? Emergency Fund and Insurance Backup

– Ensure emergency fund is at least 6 months’ expenses.
– This avoids disturbing SIPs during sudden financial stress.
– Also review life and health insurance coverage.
– Ensure it is sufficient and updated.
– Use term insurance for life cover, not ULIPs.
– Use family floater health insurance for medical needs.

? When 5 Years End – Exit and Reinvestment

– Start planning your exit 12-18 months before maturity.
– Move funds gradually to safer options.
– This protects capital from market corrections.
– Consider conservative hybrid funds near withdrawal time.
– Don’t wait till last month to act.
– Also plan next set of goals and reinvestment.
– Don’t keep funds idle after 5 years.
– Reinvest based on new goals or income needs.

? Keep Emotions Out, Data In

– Emotional investing leads to poor decisions.
– Don’t chase top performers each year.
– Choose funds with consistent 5+ year track records.
– Also check downside protection, not just returns.
– Use data, not marketing material, for fund choices.
– A Certified Financial Planner uses professional tools for selection.
– Stay objective, not reactive.

? Avoid Investment Myths and Social Advice

– Friends or relatives may suggest schemes casually.
– Their risk appetite may not match yours.
– Also avoid YouTube tips or WhatsApp forwards blindly.
– Many half-truths and old advice circulate online.
– Follow structured and professional guidance only.
– Choose investments based on your family needs.
– Don’t compare portfolios or returns with others.
– Your journey is unique.

? Final Insights

– Your joint SIP effort of Rs. 75K/month is admirable.
– Continue this for 5 years with discipline and strategy.
– Choose funds based on goal, risk, and time.
– Avoid index and direct funds to stay protected.
– Take guidance from Certified Financial Planner regularly.
– Link each investment to a goal and review annually.
– Protect capital near goal maturity using low-risk funds.
– Use regular plans for full support and peace of mind.
– Don’t mix insurance with investment at any stage.
– Maintain emergency fund and review risk coverage.
– Reinvest matured corpus based on next life phase.
– Keep simplicity, discipline, and patience in investing.
– Long-term wealth is created through consistency, not luck.
– Keep up your good work and grow steadily.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...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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