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Vivek

Vivek Lala  |301 Answers  |Ask -

Tax, MF Expert - Answered on Jan 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
Shah Question by Shah on Dec 14, 2023Hindi
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Hi, I started with a SIP of Rs 10K from the year 2016 in mutual funds. I just want to know what is the highest maturity period for the MF and what i can expect with this SIP amount at the time of maturity with highest period.

Ans: Hello, there is no such maturity of mutual funds and they can be redeemed as per your decision unless they have a lock in period.
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  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 11, 2024Hindi
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Sir, I am 59 and a private employee without any retirement benefits. I am doing MF sip for the last 3 years for my retirement. I have a total of 40 lakh in MF. There is no age restriction for retirement in our organisation, I want to work for 5 more years to have a fund of 1 crore. How much sip should I do and in which funds ?
Ans: Here's how you can plan for your retirement, considering your current situation:

Reaching 1 Crore Corpus:

Additional SIP: To reach 1 crore in 5 years, assuming a 12% annual return (aggressive assumption, actual returns may vary), you'd need to invest an additional Rs.33,000 per month (using a SIP calculator). This adds to your existing SIP amount.
Investment Strategy:

Continue Existing SIP: It's good to continue your existing SIP as it forms your investment base.
Diversify for Growth: Consider a diversified aggressive portfolio for the additional SIP to potentially maximize growth within a 5-year timeframe. This could include:
Large-Cap Funds: Invest a portion in large-cap funds for stability and growth.
Multi-Cap Funds: Invest a portion in multi-cap funds for broader market exposure and growth potential.
Mid-Cap Funds (Optional): A small portion in mid-cap funds can add growth potential, but also carries higher risk.
Consultation is Key: These are general suggestions. Consulting a Certified Financial Planner (CFP) is highly recommended. They can consider your risk tolerance, existing MF portfolio, and desired retirement corpus to create a personalized investment plan.

Remember:

Market Volatility: The stock market is volatile. There's no guarantee of 12% returns, and you might face fluctuations.
Review Portfolio: Regularly review your portfolio with your CFP to ensure it aligns with your evolving goals and risk tolerance.
Alternative Scenario:

If a more aggressive investment approach concerns you, consider working a few extra years to reach your desired corpus. This reduces the monthly SIP amount required.

Reaching your retirement goals is achievable! Plan wisely, diversify, and seek professional guidance for a secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 07, 2024

Money
I m allready invest in SIP last 5 years Rs. 3000 per month Imy planing is running countinue 25 years my age is 42 , plz aks me my fund maturity amount after 25 years
Ans: Investing in a SIP (Systematic Investment Plan) is a wise decision for long-term wealth creation. Given your consistent investment of Rs. 3000 per month over the last 5 years and your plan to continue for 25 years, let's delve into the expected maturity amount and other essential aspects of your investment strategy.

Understanding the Power of SIP and Compounding
A SIP is an effective way to invest in mutual funds regularly. It leverages the power of compounding and rupee cost averaging, which helps in maximizing returns and minimizing risks over the long term. Your commitment to investing Rs. 3000 monthly demonstrates disciplined saving and a strategic approach to achieving your financial goals.

Calculating the Expected Maturity Amount
To estimate the maturity amount, we need to consider the average annual return expected from your investments. Historically, equity mutual funds have delivered returns ranging between 10-15% per annum. For this calculation, we'll consider an average return of 12% per annum.

SIP Calculation Formula

FV is the future value or maturity amount.
P is the SIP amount (Rs. 3000).
r is the monthly rate of return (annual rate divided by 12).
n is the number of SIP installments (years multiplied by 12).
Calculation for 25 Years
Given:

SIP amount (P) = Rs. 3000
Annual rate of return = 12%
Monthly rate of return (r) = 12% / 12 = 1% = 0.01
Number of installments (n) = 25 years × 12 = 300
Let's plug these values into the formula:

FV = 3000 × [(1 + 0.01)³?? - 1] / 0.01 × (1 + 0.01)

Performing the calculation:

FV = 3000 × [(1 + 0.01)³?? - 1] / 0.01 × 1.01

FV = 3000 × [(1.01)³?? - 1] / 0.01 × 1.01

FV = 3000 × [33.784 - 1] / 0.01 × 1.01

FV = 3000 × 32.784 / 0.01 × 1.01

FV = 3000 × 3278.4 × 1.01

FV = 3000 × 3311.184

FV = 9933552

FV ≈ Rs. 99,33,552

So, your investment of Rs. 3000 per month for 25 years at an average annual return of 12% will yield approximately Rs. 99,33,552.

Assessing the Impact of Different Return Rates
It's essential to consider different return scenarios to understand the potential outcomes better. Here are the calculations for varying return rates:

10% Annual Return:
FV = 3000 × [(1 + 0.008333)³?? - 1] / 0.008333 × (1 + 0.008333)

FV ≈ Rs. 75,55,221

12% Annual Return:
FV ≈ Rs. 99,33,552

15% Annual Return:
FV = 3000 × [(1 + 0.0125)³?? - 1] / 0.0125 × (1 + 0.0125)

FV ≈ Rs. 1,42,36,786

The Importance of Regular Reviews
It’s crucial to review your investment portfolio regularly. Markets and personal circumstances change, and periodic reviews ensure your investments stay aligned with your financial goals. Engage with a Certified Financial Planner (CFP) who can provide personalized advice and adjustments based on market conditions and your evolving needs.

Benefits of Actively Managed Funds
Actively managed funds involve professional fund managers who make strategic investment decisions. These funds aim to outperform the market by leveraging research and market insights. For a medium-risk investor like you, actively managed funds can potentially provide higher returns compared to passively managed funds.

Disadvantages of Index Funds
Index funds passively track a market index, aiming to replicate its performance. While they offer lower fees, they may not achieve the returns needed to meet your financial goals. Actively managed funds, despite higher fees, can potentially deliver better returns through strategic investments.

Advantages of Regular Funds Through MFD
Investing through a Mutual Fund Distributor (MFD) with CFP credentials offers personalized advice and continuous portfolio management. This ensures your investments are well-managed, and any necessary adjustments are made promptly.

Avoiding Direct Funds
Direct funds bypass intermediaries, reducing expense ratios. However, they require you to manage your portfolio independently. Given your medium risk tolerance and long-term goals, professional guidance from an MFD with CFP credentials can be more advantageous.

The Role of Diversification
Diversification involves spreading your investments across various asset classes and sectors to reduce risk. A well-diversified portfolio can help you achieve your financial goals while managing risks effectively.

Diversifying Your SIP Portfolio
Considering your medium risk tolerance, a balanced portfolio can include a mix of large-cap, mid-cap, and sectoral funds. This combination offers growth potential and stability.

Suggested Allocation:
Large Cap Funds: 50% of SIP amount (Rs. 1500 per month)
Mid Cap Funds: 30% of SIP amount (Rs. 900 per month)
Sectoral/Thematic Funds: 20% of SIP amount (Rs. 600 per month)
Monitoring and Rebalancing
Regular monitoring and rebalancing are essential to ensure your portfolio stays aligned with your goals. Periodic reviews help in making necessary adjustments based on market conditions and performance.

Steps for Monitoring:
Quarterly Reviews:

Review your portfolio every quarter to assess performance and make necessary adjustments.

Rebalancing:

If certain funds outperform or underperform, rebalance to maintain your desired asset allocation. This helps in managing risk and optimizing returns.

Importance of Emergency Fund
Before continuing with your SIP, ensure you have an emergency fund covering 6-12 months of living expenses. This provides a financial cushion in case of unexpected events, allowing your investments to grow uninterrupted.

Tax Implications and Planning
Understanding the tax implications of your investments is crucial. Equity mutual funds held for more than one year qualify for long-term capital gains tax, which is currently 10% on gains exceeding Rs. 1 lakh per year. Plan your investments and withdrawals to optimize tax efficiency.

Additional Investment Considerations
Diversifying Beyond Equity:

While equity funds are essential, consider diversifying a small portion into debt funds or hybrid funds for stability and risk management.

Monitoring Market Trends:

Stay informed about market trends and economic indicators. This helps in making informed decisions and adjusting your portfolio accordingly.

Professional Advice:

Engage with a Certified Financial Planner (CFP) regularly. Their expertise can guide you in making strategic decisions and achieving your financial goals.

Steps to Implement Your Investment Plan
Assess Your Risk Tolerance:

Re-evaluate your medium risk tolerance to ensure your investment strategy aligns with your comfort level.

Choose the Right Funds:

Select large cap, mid cap, and sectoral funds with a strong track record and consistent performance.

Invest Systematically:

Continue with your SIP and consider additional SIP investments to manage market volatility and average out costs.

Review and Adjust:

Regularly review your portfolio, assess performance, and rebalance as needed to stay on track towards your goal.

Conclusion
Achieving your goal of a substantial maturity amount through SIPs requires a strategic and diversified approach. By investing in a balanced mix of large cap, mid cap, and sectoral funds, and leveraging the expertise of a Certified Financial Planner, you can optimize your chances of success. Remember to monitor your investments regularly, adjust your portfolio as needed, and stay informed about market trends.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 16, 2024Hindi
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Money
I am 48 years, Sir please suggest me what is the monthly MF sip investment details. From which I will get 1cr. after 10 years.
Ans: It's commendable that you are planning for your future. Setting a goal of Rs. 1 crore in 10 years is ambitious. Let’s break down how to achieve this through mutual funds.

Benefits of SIPs
Systematic Investment Plans (SIPs) are effective. They allow you to invest small amounts regularly. This helps in averaging the cost and reducing the impact of market volatility. SIPs also instill financial discipline.

Importance of Goal-Based Planning
It's crucial to align your SIP with your financial goals. We need to assess the expected rate of return. Typically, mutual funds provide returns between 10-12% annually. However, past performance does not guarantee future results.

Calculating the SIP Amount
Given your goal and time frame, you need a rough estimate. For a target of Rs. 1 crore in 10 years, a rough SIP amount would be around Rs. 50,000 per month. This is based on a conservative estimated annual return of 12%.

Selecting the Right Mutual Funds
Actively managed funds can be beneficial. These funds are managed by expert fund managers. They aim to outperform the market. This can provide better returns compared to index funds.

Advantages of Actively Managed Funds:
Professional management by experts
Potential for higher returns
Flexibility in investment strategy
Disadvantages of Index Funds:
Limited potential for outperformance
Rigid investment strategy
No active management
Avoiding Direct Funds
Direct funds might seem attractive due to lower costs. However, they lack the guidance of a Certified Financial Planner (CFP). Regular funds provide valuable advice and support. This helps in making informed investment decisions.

Disadvantages of Direct Funds:
No professional advice
Potential for uninformed decisions
Lack of strategic adjustments
Benefits of Regular Funds through CFP:
Expert guidance
Regular portfolio review
Strategic adjustments based on market conditions
Assessing Risk Tolerance
Your risk tolerance plays a significant role. At 48, balancing risk and growth is vital. A diversified portfolio can mitigate risks. This ensures stability while aiming for your financial goals.

Monitoring and Adjusting Your Portfolio
Regular reviews are essential. The market is dynamic, and your portfolio needs adjustments. A CFP can assist in rebalancing your investments. This keeps your portfolio aligned with your goals.

Tax Efficiency
Mutual funds offer tax benefits. Long-term capital gains (LTCG) on equity funds are tax-free up to Rs. 1 lakh annually. Proper tax planning enhances your returns.

Financial Discipline
Staying committed to your SIP is crucial. Market fluctuations can be unsettling. However, maintaining discipline is key to achieving your target.

Additional Considerations
Ensure you have adequate insurance coverage. This protects your investments in unforeseen circumstances. Also, keep an emergency fund to handle unexpected expenses.

Final Insights
Investing in mutual funds through SIPs is a wise decision. With careful planning and regular reviews, you can achieve your goal of Rs. 1 crore in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Shyam

Dr Shyam Jamalabad  |78 Answers  |Ask -

Dentist - Answered on Nov 14, 2024

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Dr. Shyam, I had my teeth cleaned 6 months ago and after that was done I saw discoloration on certain teeth that wasn't there before. Years ago I had my teeth cleaned and one particular tooth after the cleaning was sensitive to touch. I had a crown put in from two different dental offices. The first one did the crown right, but was trying to charge me $3,500 more than the agreement they made with Medicare. Medicare corrected that. I other dentist did a crown and it didn't go all the way up to my gums and is sensitive to especially cold things. I'm not having very good experiences with dentist by and large. Can't find an honest one or one that can actually do the job right. I feel being on Medicare your a target to bring in money. Not sure what to do next. Supposed to go back and have them redo the crown that didn't go to my gums, but it also was ttd place to didn't clean my teeth right and discolored some of them. Any suggestions on how to trust there is actually an capable and honest dentist out there who can perform properly?
Ans: Identifying a capable and honest dentist is crucial for your oral health and well-being. Here are some tips to help you find one:

1. Ask for referrals: Ask friends, family, or coworkers for recommendations. They can provide valuable insights into a dentist's work quality and bedside manner.

2. Check credentials: Ensure the dentist has the necessary qualifications, certifications, and licenses. You can verify this information with your state's dental board or professional organizations like the American Dental Association (ADA).

3. Check online reviews: Look up the dentist on review platforms. Pay attention to the overall rating and read the comments to understand the strengths and weaknesses. At the same time, do not rely on reviews alone as these can be manipulated, fake reviews can be easily generated.

4. Evaluate their communication style: A good dentist should listen to your concerns, explain procedures clearly, and answer questions patiently. Ensure you feel comfortable asking questions and discussing your treatment.

5. Assess their facility and equipment: A well-organized and modern dental office with up-to-date equipment is a good sign.

6. Check their approach to preventive care: A capable dentist emphasizes preventive care, including regular cleanings, exams, and education on oral hygiene.

7. Be wary of over-treatment: A honest dentist will not recommend unnecessary procedures. Be cautious if you feel pressured into extensive treatments.

8. Trust your instincts: If something feels off or you don't click with the dentist, it's okay to explore other options.

10. Schedule a consultation: Many dentists offer initial consultations or meet-and-greets. Use this opportunity to assess their approach, ask questions, and gauge your comfort level.

By following these steps, you can increase your chances of finding a capable and honest dentist who prioritizes your oral health and well-being.

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Ravi

Ravi Mittal  |416 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 14, 2024

Asked by Anonymous - Nov 03, 2024Hindi
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Relationship
Hi, I am 30 years old not married & now my parents are forcing me to get married. I think i am good looking guy. It's not like i have never been with girls. I have had brief flings with multiple girls. And there was one girl whom i was in a platonic relationship with with lot of emotional sharing & have spent a lot of time with her. The same goes with another girl. Both of them have told me that i have been pretty cool & girls would like me to be their bf or husband. But i am not able to accept anyone because of the guilt that of my past that i never had a relationship. Never been able to tell anyone that i had a gf. I know this is wrong to compare my life but i can't stop thinking that way. Can you tell me what to do? Like a contsant regret of not having a very steamy cool fancy relationship from outside. I know relationships have it's own ups & downs. But this guilt is killing me that i missed out lot of things in life & if get married in an arranged marriage i would feel myself to be a looser who couldn't even find a girl on his own. Though i know all of these comparisons are wrong & i should be rational. I am not able to help it. Please help me out
Ans: Dear Anonymous,
Whatever you are feeling, it is very normal. More people than you could imagine go through this same phase. But as you mentioned, these are just thoughts; there is no truth to them. Not having a relationship does not make you uncool. It merely means that you did not meet your perfect match yet. I understand that you feel like you have missed out on something and that feeling is valid. It might not be reasonable, but it's very natural to think this way. I can suggest one thing- why don't you try a dating or matchmaking app to find your own partner? That way, you will be keeping your parents' wishes and won't let yourself down either. It will also give you more control over choosing your life partner.

Hope this helps.

...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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