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Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Ajit Question by Ajit on Dec 16, 2023Hindi
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I want to do sip of rs. 10000 for 20 years with a target corpus 1cr.currently I have sip for rs.4000/- in kotak flexi cap & 2000/- in SBI banking and financial fund. Remaining 4000/- I am purchasing additionly as per Market conditions between these two funds. Is it ok for me???I think I should invest this 4000/- in small cap fund in quant small cap or Nippon small cap.. please guide.

Ans: Given your current SIP investments in Kotak Flexi Cap and SBI Banking and Financial Fund, it's important to diversify your portfolio further. Since SBI Banking and Financial Fund carries high risk as a sectoral fund, you may consider stopping investments in it. consider reallocating those funds to a different category, such as a small-cap fund. Small-cap funds offer potential for higher returns over the long term but also come with increased risk. Before deciding, assess your risk tolerance and consult with a financial advisor for personalized guidance tailored to your financial goals and situation.
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  |7510 Answers  |Ask -

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

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Hi sir i am investing in SIP mode, 1 Nippon largecap 2 Icici multicap 3 absl frontline equity 4 miare mid and large cap 5 axis mid cap all 5 1.5 k each and Hdfc 1k each.. feo past 3-5 years... pls advise your view ..also want to add more 10k for 5-10year horizon in quant floxi and nifty 50 index fund pla advise bestbone in infex fund and its ok to add quant flexi fund 5k sip
Ans: It's great to see your commitment to SIP investing over the past few years. Let's discuss your current portfolio and future investment plans:
• Your SIP portfolio comprises a mix of large-cap, multi-cap, mid-cap, and hybrid funds, providing diversification across market segments.
• Nippon, ICICI, ABSL, Mirae, and Axis are reputable fund houses with strong track records, which is a plus for your portfolio.
• Adding HDFC funds adds further diversification, contributing to a well-rounded investment strategy.
Regarding your plan to add more funds:
• Investing an additional 10k for a 5-10 year horizon is a smart move, especially if you're aiming for long-term growth.
• Considering Quant flexi and Nifty 50 index funds is a good idea. Index funds offer low-cost exposure to the broader market, which can complement actively managed funds in your portfolio.
A few considerations:
• Ensure that the new additions align with your risk tolerance and investment goals.
• Regularly review your portfolio to ensure it remains diversified and aligned with your financial objectives.
• Keep an eye on the performance of each fund and consider making adjustments if needed.
Overall, your investment approach seems well-structured, and adding more funds for long-term growth is a step in the right direction. Remember, investing is a journey, and staying committed to your financial goals will yield fruitful results over time. If you have any further questions or need assistance, feel free to reach out. Happy investing!

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Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

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

Money
Sir i am doing SIP OF RS 10000 EACH IN ICICI BLUE CHIP AND CANARA ROBECO BLUE CHIP FUND. RS 5000 IN PPFAS FLEX CAP FUND. I WANT TO START SIP FORCRS 10000 MORE. KINDLY SUGGEST WHETHER MY SIP ARE CORRECT AND FUNDS TO START NEW SIP. HORIZON IS ABT 10 YRS.
Ans: your commitment to regular SIPs is highly commendable and forms a strong foundation for wealth creation over the next decade. Let's evaluate your current fund choices and explore additional options to ensure a balanced portfolio for long-term growth. Below is a comprehensive assessment of your investments.

Reviewing Your Existing SIPs
Current Equity Focus: You are currently investing Rs 10,000 each in two blue-chip funds. Blue-chip funds focus on large-cap companies, offering stability and potential for steady growth. With a 10-year horizon, this choice is generally aligned with long-term goals, as large-cap funds can provide consistency and moderate growth over time.

Flexi Cap Investment: Your Rs 5,000 SIP in a flexi-cap fund brings exposure across large-, mid-, and small-cap segments. This is beneficial, as it allows the fund manager flexibility to allocate between different market caps, potentially boosting returns through strategic diversification.

Long-Term Potential: Both blue-chip and flexi-cap categories align well with a 10-year goal. The large-cap focus provides stability, while the flexi-cap allocation enhances growth potential. This combination balances risk and return, creating a solid base for wealth accumulation.

Considering Portfolio Diversification
Diversification Beyond Large Cap: Your portfolio is currently weighted towards large-cap funds. For a 10-year horizon, adding exposure to mid- or small-cap funds could enhance returns. Mid-cap funds, for instance, have historically outperformed large caps over longer periods due to their growth potential, though they carry slightly higher volatility.

Sectoral and Thematic Funds: For a focused long-term strategy, sectoral or thematic funds are another option. These funds invest in specific sectors like technology or healthcare, capturing sector-specific growth. However, sectoral funds are volatile and may require periodic review, as they depend on sector performance. They should form only a small part of your portfolio due to their concentrated risk.

Balancing Risk with Multi-Cap Allocation: Multi-cap funds are ideal for diversification. These funds distribute investments across market segments and are actively managed to maximise growth opportunities. A multi-cap fund could serve as a middle ground, reducing risk compared to small-cap funds while potentially outperforming large-cap-only funds.

Tax Efficiency and Investment Structure
Capital Gains Taxation on Mutual Funds: With equity funds, long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. For short-term gains, the rate is 20%. Given the long investment horizon, focusing on tax efficiency through long-term holdings is advisable to optimise net returns.

Benefits of Investing in Regular Mutual Funds via MFDs: Direct mutual funds may appear cost-effective due to lower expense ratios. However, regular funds offer expert advice and portfolio management by Certified Financial Planners (CFPs) and MFDs. The guidance of professionals ensures proper fund selection and rebalancing based on market conditions and your goals. This support can add value beyond mere expense savings.

Recommendations for Additional SIP Investment Options
To maximise your portfolio’s growth potential and address any gaps, consider these fund types for your new Rs 10,000 SIP allocation.

Mid-Cap Funds: Adding a mid-cap fund can offer higher growth potential. Mid-caps have room for expansion and often outperform large-caps over longer periods. However, they can be volatile in the short term. Allocating Rs 5,000 to a mid-cap fund could provide a growth boost while balancing risk with your existing large-cap investments.

Multi-Cap Funds: A multi-cap fund with Rs 5,000 would offer diversification across all market caps. Multi-caps adjust their allocation dynamically, capturing growth from all segments. This approach reduces dependency on a single segment, helping your portfolio perform well across varying market cycles.

Balanced Advantage Fund (BAF): For stability, consider adding a balanced advantage fund. These funds adjust between equity and debt based on market conditions, offering both growth and capital protection. With a portion in BAF, you could enjoy equity-linked returns with reduced volatility, which complements pure equity holdings.

Strategic Allocation for Long-Term Wealth Creation
Staggering Investments: Since you’re looking at a 10-year horizon, consider a staggered SIP approach for new investments. This will help you capture market volatility to your advantage through rupee-cost averaging, reducing the impact of short-term market fluctuations.

Review and Rebalance Periodically: Set a review frequency—ideally once a year. During this review, assess fund performance, portfolio composition, and alignment with goals. Rebalancing ensures that your portfolio remains aligned with your risk tolerance and growth objectives as markets evolve.

Setting Growth Expectations: It’s important to have realistic growth expectations, especially with a diversified portfolio. While mid- and small-cap funds can outperform, they also bring higher volatility. Balancing these funds with blue-chip and balanced advantage funds can stabilise returns over time.

Final Insights
Your current investments lay a solid foundation with stability from blue-chip funds and growth flexibility through a flexi-cap fund.

By adding mid-cap, multi-cap, and possibly a balanced advantage fund, you diversify across market caps and asset classes, optimising for growth with moderated risk.

A Certified Financial Planner’s guidance ensures that your portfolio adapts to market shifts, which is vital over a 10-year horizon. This professional advice will help in balancing cost-efficiency and tailored fund management, which is crucial in optimising long-term growth.

Regular reviews and rebalancing, supported by an MFD with CFP credentials, will enhance your portfolio’s performance and alignment with your 10-year goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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Latest Questions
Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 14, 2025Hindi
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I’ve always aspired to work in the Ministry of External Affairs, but I know the competition is tough. I will be appearing for the SSC CGL exam this year. For Tier 2, which sections or strategies should I prioritise to boost my chances of landing my dream role in this recruitment drive?
Ans: The SSC CGL exam is a competitive entry-level job in the Ministry of External Affairs (MEA), with the main role being Assistant Section Officer (ASO). Tier 2 of the exam consists of multiple papers, with Paper I being required for all postings, including MEA. The main focus areas are mathematical quantitative aptitude, thinking and general intelligence, English language and understanding, and general knowledge.

Quantitative aptitude (200 Marks) is a high-scoring but time-consuming area, with areas such as algebra, geometry, trigonometry, menuration, data interpretation, and number system. Practice and strengthen basic skills, focusing on accuracy and speed. Resources for pattern comprehension include R.S. Aggarwal's Gradeup and Testbook quantitative aptitude with online mocks.

English language and comprehension (200 Marks) is high-scoring and essential for MEA, with areas like grammar, vocabulary, comprehension, synonyms and antonyms, and sentence correction. Strategies include daily reading schedules, vocabulary expansion using Norman Lewis's Word Power Made Easy, and solving cloze tests.

General awareness (100 Marks) is crucial for MEA aspirants, with areas like current affairs, international relations, Indian polity, geography, history, and economics. Stay informed about foreign policy changes, NCERTs, and NCERTs for stationary sections.

General intelligence and reasoning (60 Marks) is a scoring section, with areas like puzzles, coding-decoding, blood relations, series, and direction tests. Techniques include trying full-length mock tests, time management, previous year reports, and preparing for essays and letter writing on global concerns. All the Best for SSC CGL Exam.

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Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Hello Sir, I’m back to you with a question . Sir, doing mechanical in top nits or iiits or bits, what are the possibilities to do ms in computer science. I keep hearing from everyone to go for cse to do ms cs , but my daughter prefers good college first and then cse, based on her capability it’s extremely difficult to get cse in tier1 , so she says I will do mechanical in tier 1 and do ms cs abroad. Please guide on the pros , cons Sir
Ans: Pursuing Mechanical Engineering at top-notional institutes like IIT, NIT, IIIT, or BITS or any other NIRF-Ranked Engineering It may please be noted that if your daugther performs well in 1st Year of her BE/BTech, she will be upgraded to CSE Branch (based on the Institute's Internal Sliding Policy). Colleges offer advantages such as a strong alumni network, branch flexibility, and a strong resume for MS admissions. Students can enroll in elective courses in programming, data structures, and computer applications to prepare for an MS in CS.

However, transitioning from Mechanical to CS for an MS overseas can be challenging due to the need for prior knowledge in CS principles. With more self-learning and certificates, it is possible. Additionally, CS is tough for MS admissions in the US, and students may have to create a strong profile through internships, online courses, and certifications in CS domains without a CS degree.

To ensure a seamless transition, students should select electives in programming and computer science based on their undergraduate course (if the institute allows). Online programs for courses in data structures, Python, and artificial intelligence can be found on CS-oriented sites like Coursera, edX, or NPTEL. Summer internships involving data analysis, coding, or automation projects can also be sought. Multidisciplinary initiatives like mechanical engineering automation or computational fluid dynamics (CFD) can also be explored.

If your daughter's main goal is to pursue an MS in CS, it is better to consider Tier 1 Institutes with CS or IT branches and top-tier institutes with Mechanical focus actively pursuing CS. All the Best for Your Daughter's Prosperous Future.

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Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 15, 2025

Relationship
Hello sir/ma'am, i am 24 yrs old and my boy friend 25 yrs old.I met him in a friendly chat app .We were talking on calls,texting and video calls and met each other in real after a 1 yr of relationship.He is the first guy and love in my life and want to marry him.I even made my family to agree for our marriage.He too says he loves me so much and has imagined his life with me and want to marry me.He even told his parents will stick on to whatever he says.He hasn't yet conveyed to his parents yet and told he will introduce to them after his younger sister marriage.We both are students still. I recently found that,he goes to the chat apps again and chats to other girls.When i asked ..he told just friends and even questioned me saying don't u have guy friends? and don't u meet them?....i told him u r the first guy n i dont have any. When our relationship has gone till marriage...why is that he wants to chat to multiple girls?...Now,i started feeling like he doesn't love me as he expressed. He even had past 3 online relationships n all 3 breakups,he told all these before..he told i am the first girl in real life.. I am worried now.Why do guys chat with multiple girls though they are in a serious relation?..does he really love or is it a game? No physical between us.We just met once in a temple and he just kissed my hands while we are going back and got very emotional while he was about to leave. I am worried..what should i do?.please,suggest.
Ans: Dear Ammarao,
Not all men chat with multiple women when they are serious about their relationship. Some might, but most men in exclusive relationships don't continue chatting. If his chats are truly friendly, there isn't much to worry about. But if you think there is more to it, I would suggest you reconsider the relationship.

Please talk to him directly and ask him if these women are only friends and if they know he is in a committed relationship. If he is being too defensive, you can tell him that in a relationship, it is also important to focus on what your partner is comfortable with. If you do not like these online friendships, communicate it to him.

I hope this helps.

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Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Recently, I (28M) had surgery and have been bedridden for 15 days. During this time, my girlfriend told me her female friend wanted to meet up with a guy. This guy was bringing along a male friend whom I’ve asked my girlfriend to avoid in the past because he tends to get touchy with her. They planned to stay in a hotel, and her friend wanted to be with the guy at night, meaning my girlfriend and the touchy guy would likely share a single room. A couple of days before the trip, she asked me if she should go. I told her it was her choice but made it clear I wasn’t happy about it. Despite that, she went, and when I confronted her, she gave responses like: • “I didn’t invite the touchy guy; the other guy did.” • “Just because you’re bedridden, you don’t want me to go outside.” • “I didn’t touch him; he got touchy with me.” Yeah, maybe I’m jealous or overthinking, but this whole situation has made me unsure about marriage altogether. Am I overreacting?
Ans: Dear Anonymous,
I really cannot comment if you are overreacting or have every reason to feel this way without knowing a bit more about the entire situation. But what I can tell is that you should communicate your feelings to your partner. Let her know that while maintaining individuality or pursuing individual wishes in a relationship is important, it is equally important to pay heed to what makes your partner uncomfortable. Your request, from what information you have provided, seemed reasonable, while her reasoning that it is the guy's fault, not hers also makes perfect sense. So I think the best course of action is to let the situation calm down and have an open conversation. Could she have avoided this meetup to make you happy? Yes. But, she could've thought that if she avoids one thing for your happiness, you might start asking her to give up more things in the future, which is a real issue in many relationships. I think it is important to clear up all of these concerns and feelings before moving on with lifelong commitment.

Hope this helps

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Nayagam P

Nayagam P P  |4050 Answers  |Ask -

Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 14, 2025Hindi
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Career
This is my second attempt at SSC CGL, and I’ve improved since last year. But I’m still anxious about the descriptive paper. Can you suggest ways to stand out in this section and make my essay and letter writing more impactful?
Ans: The SSC CGL descriptive paper requires a clear, structured, and effective presentation. To improve your essay writing skills, review the subject matter thoroughly and avoid deviations from the central theme. Sketch an initial outline and adhere to a straightforward framework, including an Introduction, Body, and Conclusion. Start with a hook and express your thesis or stance in a concise manner. Arrange arguments in a logical order, using data, examples, and facts to establish credibility. Avoid repetition and maintain brevity.

In summary, concisely summarize the primary themes and offer a fair perspective. Avoid vernacular language and maintain appropriate sentence structure and grammar. Maintain a clean writing style and avoid overwriting.

For writing a letter, adhere to the conventional format, maintain clarity and conciseness, and articulate the purpose in the first paragraph. Use simple language and avoid intricate terminology.

Regularly engage in writing essays and correspondence on various subjects to develop adaptability. Stay informed about the latest news and hot topics. Develop time management skills and consistently proofread your work for errors.

Developing impactful essays and letters with clarity, structure, and content relevance enhances your chances of success in the SSC CGL descriptive paper. All The Best for Your Prosperous Future.

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Kanchan

Kanchan Rai  |493 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 15, 2025

Asked by Anonymous - Jan 05, 2025Hindi
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Relationship
How to manage stress?
Ans: The first step is to become aware of what triggers your stress. This self-awareness allows you to address the root causes rather than just the symptoms. Once you identify these triggers, you can start exploring techniques that help you cope effectively.

One effective approach is to incorporate regular self-care practices into your daily routine. This could include activities that bring you joy and relaxation, such as exercise, meditation, or spending time in nature. These practices not only help calm the mind but also improve your overall mood and resilience to stress.

Talking to someone you trust, whether a friend, family member, or professional, can also be a powerful way to manage stress. Sharing your feelings and experiences helps lighten the emotional load and provides different perspectives that might help you navigate your challenges more effectively.

It's also important to focus on what you can control and let go of things that are beyond your influence. This shift in mindset can reduce feelings of helplessness and frustration. Setting realistic expectations for yourself and others can also alleviate unnecessary pressure.

Remember to give yourself permission to rest and recharge. Adequate sleep, a balanced diet, and time for relaxation are essential for managing stress. When you take care of your body and mind, you're better equipped to handle life's demands.

Lastly, cultivating a mindset of gratitude and mindfulness can help you stay present and appreciate the positive aspects of your life, even during stressful times. These practices can create a sense of balance and help you respond to stress in healthier, more constructive ways. By integrating these approaches into your life, you can build resilience and find a sense of peace amidst the chaos.

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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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