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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Nov 08, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Amit Question by Amit on Nov 05, 2023Hindi
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Hi, I want to start an SIP for my 18 year old daughter as her first investment which will ultra long term considering her age. Pls advise with the choice of funds for a monthly amount of 5k

Ans: Choosing the right investment for a long-term goal requires careful consideration of your daughter's risk tolerance, investment horizon, and financial goals. Given her young age and ultra-long-term investment horizon, a diversified equity-based mutual fund could be a suitable option.

You can go for a good flexi cap fund along with some allocation to a nice mid cap fund, assuming you will continue SIP for more than 10 years with required increment every year.

Remember to review your portfolio periodically and rebalance it as needed to maintain your desired asset allocation.
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 01, 2024

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My daughter now 20 year old i want to start sip 25 k p.m. for 25 years please suggest best fund for best return in long term
Ans: When selecting mutual funds for your daughter's SIP investment of 25k per month for 25 years, it's essential to consider various factors to maximize returns over the long term:

Investment Horizon: Since you have a 25-year investment horizon, you can afford to take higher risks and invest in equity-oriented funds that have the potential to deliver superior returns over the long term.

Diversification: Opt for well-diversified equity funds that invest across different sectors and market capitalizations to spread risk. Diversification helps mitigate the impact of volatility and specific sectoral risks.

Fund Performance: Evaluate the historical performance of mutual funds by analyzing their long-term returns relative to their benchmark indices and peers. Choose funds with a consistent track record of outperformance across market cycles.

Fund Manager Expertise: Assess the expertise and experience of the fund managers managing the schemes. A skilled and experienced fund management team is crucial for making informed investment decisions and navigating market volatility effectively.

Expense Ratio: Consider the expense ratio of mutual funds, which directly impacts your overall returns. Lower expense ratio funds tend to provide better net returns to investors over the long term.

Risk Profile: Align the mutual fund selection with your daughter's risk tolerance and investment objectives. Since she is young and has a long investment horizon, you can consider investing in equity funds with a higher risk-return potential.

Regular Review: Periodically review the performance of the selected mutual funds and make necessary adjustments to the portfolio based on changing market conditions, fund performance, and investment goals.

By carefully considering these factors and selecting well-managed, diversified equity funds with a track record of consistent performance, you can potentially maximize returns and achieve your long-term investment objectives for your daughter's future financial goals. It's advisable to consult with a financial advisor to tailor the investment strategy to your specific requirements and risk appetite.

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 15, 2024

Asked by Anonymous - Oct 14, 2024Hindi
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dear sir, I am planning to invest ?5,000 per month for my daughter's education or their marriage expenses, with a timeframe of at least 20 to 25 years in a SIP. Which fund would you recommend for this duration? and is it advisable to open a demat account on her name, she is currently 7 years old?
Ans: You are planning to invest Rs 5,000 per month for your daughter’s education or marriage expenses, with a timeframe of 20 to 25 years. This is a great step towards securing her future. It gives you a long-term horizon to grow your wealth. Let's explore the best way to approach this.

Systematic Investment Plan (SIP) for Long-Term Goals
For a long-term goal like your daughter's education or marriage, SIP is a smart choice. SIPs offer disciplined investing, and the power of compounding can work in your favour over 20-25 years.

Equity Mutual Funds: Since your goal is long-term, equity mutual funds are a good option. They tend to perform better than other investment options over longer durations.

Flexibility of SIP: One of the advantages of SIP is that you can start small and increase the amount later as your income grows. This flexibility ensures that you can stay consistent with your contributions.

Ruled by Market Cycles: Equity mutual funds are subject to market ups and downs. But over a 20-25 year horizon, these fluctuations tend to even out. Historically, equity mutual funds have delivered inflation-beating returns over the long term.

Actively Managed Funds vs Index Funds: Actively managed funds could be a better option than index funds in this case. While index funds track a market index, they might miss out on the ability to outperform the market. Fund managers in actively managed funds can take advantage of market opportunities to generate better returns.

Importance of Diversification
Diversification reduces risk and gives better stability to your portfolio. Over 20 to 25 years, market conditions will vary. A well-diversified portfolio ensures your money grows steadily.

Equity Diversification: You can diversify within equity by investing in a mix of large-cap, mid-cap, and small-cap funds. Large-cap funds are more stable, while mid-cap and small-cap funds have the potential for higher returns but come with higher risk.

Adding Debt Mutual Funds: Adding some portion of debt mutual funds can provide stability, especially as you get closer to your goal. Debt funds are less volatile and can act as a cushion when the equity markets go down.

International Exposure: Some portion of your portfolio can also have international exposure, which adds a layer of diversification across geographies.

Regular vs Direct Funds: What Should You Choose?
If you have heard about direct mutual funds, it may seem tempting because they offer lower expense ratios. But direct funds are not always the best option unless you are an experienced investor who can manage everything on your own.

Direct Funds Drawbacks: Investing in direct funds means you need to track the market yourself. You will have to decide when to buy, switch or exit. It can be time-consuming and requires knowledge of market trends. There is no professional guidance or hand-holding.

Benefit of Investing Through an MFD with CFP Credential: Instead, choosing a regular plan through a certified financial planner (CFP) ensures you get expert advice. Your CFP will track the market for you, rebalance your portfolio when needed, and help you align it with your financial goals. The cost of a regular fund might be slightly higher due to the expense ratio, but the guidance and personalised planning are worth it.

Tax Implications You Should Know
When investing for such a long period, it's important to consider the tax implications as well.

Capital Gains Tax: In equity mutual funds, long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%. It’s advisable to plan your withdrawals smartly, keeping these tax rates in mind.

Debt Funds Taxation: In debt mutual funds, both LTCG and STCG are taxed as per your income tax slab. Debt funds are more tax-efficient than FDs, especially over the long term.

Should You Open a Demat Account for Your Daughter?
Now, let’s address the question of whether it’s advisable to open a Demat account in your daughter’s name.

Demat Account for Minors: Technically, you can open a Demat account in your daughter's name even though she is 7 years old. However, as a minor, she won't have any control over the account until she turns 18. You, as the guardian, will have to manage it on her behalf.

Practicality of Opening a Demat Account: It’s more practical to invest in your own name and earmark these funds for your daughter's education or marriage. You can always transfer the money or investments to her when needed. Opening a Demat account at this stage might add unnecessary complexity, especially when you can manage her investments easily from your own account.

Ownership Considerations: While it may seem like a good idea to keep her investments separate, the tax liabilities will still be on you until she turns 18. Managing investments from your account simplifies the process and keeps everything in one place.

Keeping Inflation in Mind
Inflation is an important factor to consider when investing for long-term goals like education or marriage. Costs, especially in education, rise significantly over time. It’s crucial to choose investment options that can give you inflation-beating returns.

Equity for Higher Returns: Equity mutual funds can help beat inflation in the long term. Over a 20-25 year period, equity investments have the potential to generate returns higher than inflation.

Regular Review: While you don’t need to check your investments every day, it's wise to review them annually or semi-annually. This ensures that your investments are on track to meet your goals, and you can make adjustments if needed.

Don’t Depend on Insurance-Based Investment Plans
It’s common for parents to be attracted to investment-cum-insurance policies for their children's future. However, these policies often give lower returns compared to mutual funds.

Investment-Cum-Insurance Policies: Such policies may promise assured returns, but the returns are often quite low. It is better to keep your insurance and investment separate.

Consider Surrendering: If you currently hold any investment-cum-insurance policies, you might want to consider surrendering them and reinvesting the proceeds into mutual funds. A dedicated mutual fund portfolio will grow much better over the long term.

Final Insights
Your decision to invest Rs 5,000 per month in SIP for your daughter's future is a wise one. With a 20-25 year horizon, equity mutual funds offer you the best opportunity for growth. Actively managed funds, diversified across large-cap, mid-cap, and small-cap, provide stability and the potential for higher returns.

Opening a Demat account in your daughter’s name is not necessary at this stage. Managing her investments from your account is more practical, and you can transfer the funds to her when needed.

Keep insurance and investments separate. Focus on long-term growth through mutual funds, and consider investing through a certified financial planner (CFP). They can guide you to ensure your portfolio stays on track for your daughter’s future education or marriage expenses.

Best Regards,

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

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Nitin

Nitin Narkhede  |36 Answers  |Ask -

MF, PF Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 14, 2024Hindi
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dear sir, I am planning to invest Rs. 5,000 per month for my daughter's education or their marriage expenses, with a timeframe of at least 20 to 25 years in a SIP. Which fund would you recommend for this duration? and is it advisable to open a demat account on her name, she is currently 7 years old?
Ans: For your daughter’s education or marriage expenses, with a 20-25-year horizon, investing Rs. 5,000 per month in equity mutual funds via a SIP is a good approach. Long-term investments benefit from the power of compounding and have the potential for higher returns in equity markets.
Consider the following types of funds: 1. Flexi-cap Funds- These invest in companies of various sizes, balancing risk and returns. Funds like Parag Parikh Flexi Cap or UTI Flexi Cap are solid choices. 2. Large Cap Funds- These focus on established companies and offer stability. Examples include SBI Blue-chip and Axis Blue-chip Fund. 3. Child-Centric Funds- These are tailored for long-term educational goals, such as the HDFC Children’s Gift Fund.
Opening a Demat account in your daughter’s name isn't necessary. You can hold investments in your name under a minor account, and when she turns 18, the account can be transferred to her. Investing through mutual fund SIPs is a simple, efficient method that doesn't require a Demat account.
This strategy will help you build a substantial corpus for your daughter’s future needs over the next 20-25 years by reviewing your investments periodically.
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

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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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Pradeep

Pradeep Pramanik  |186 Answers  |Ask -

Career And Placement Consultant - Answered on Nov 21, 2024

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I am looking for a job, I had uploaded my resume in job site. A consultant called me & introduced himself telling he know some of the openings. He had a detailed discussion about my job & my skills. He told need to register to his consultancy for scheduling interview. I registered with him & he got me a interview. Interview was done by the company through skype. I could not see the company persons. They told only they can see me. Interview went on well & regarding salary I told my expectation but they told it is not possible & they told their proposal. Finally I agreed to them. They gave me code & told to visit the company for next round. Consultant called me after first round & told recruiter is very happy with the interview. Regarding salary he told why I agreed for the proposal,he will discuss again & asked to pay charges for some of his services which he will refund the day I visit to the company & take the orders. I paid him. He told there is a increase in salary he has discussed with recruiter & again asked for the money I did only partial payment & further will not pay anything. Second round also happened through skype instead of in person. Interview went on well & salary offered was good comparing to before & there was a big jump. Recruiter told they have planned to give additional responsibilities so they have increased. Finally they gave me a date to visit company. I asked when will I get the order, he replied he will send to consultant as I was taken by them. Till now i did not get the orders, consultant is keep on postponing. Now he told visit to company date is also postponed, he will update in next week & not to worry as job is confirmed. Now not understanding what to do, am I been cheated or wait.
Ans: Dear Mr. Keshava ,

There are many unscruplous job agents who are fake and claim themselves to be a Placement consultant. In short You have been cheated . Before paying any fee for registration , you must ensure that the agency is genuine . If not don't even upload your resume . You may write to company , lodge a complaint against the agency. If the amount is very high , pl. take the help of police . .

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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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