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Dev Ashish  |48 Answers  |Ask -

MF Expert, Financial Planner - Answered on Dec 28, 2023

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
Asked by Anonymous - Dec 25, 2023Hindi
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I have a surplus amount of 36lac in account still not invested and I am newly married my age is 30 I’m a state govt employee too and my goal is by the age 50 retire with a corpus of 10crores plz guide how to achieve

Ans: If your investment horizon is 20 years, then you should be looking at investing in inflation-beating assets like equities. Assuming Rs 36 lakh is deployed into equity (say in a staggered manner over the next 2 years) and you also start investing regularly each month into equity funds, then to reach Rs 10 Crore at average portfolio returns of 10% (assuming a mix of equity and debt), you need to invest about Rs 70-75,000 monthly. Since you would already be investing in PF, etc. via salary deduction every month, the remaining amount can be invested in equity schemes from fund categories like largecap index funds, flexicap funds, midcap funds, etc.
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  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

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I am 42 years of age now and I want to accumulate a corpus of 1 crore rs in next 10 years for my retirement? I also have fund requirements for my kids education, their weddings and other expenses coming up in next 5-10 years. I can invest Rs.20000 per month as we speak.
Ans: Planning for retirement and future expenses for your children is a wise decision. Let's create a strategy to achieve your financial goals:

Retirement Corpus:
With a monthly investment of Rs. 20,000 and a 10-year horizon, aim for a diversified investment approach. Consider a mix of equity mutual funds, debt funds, and other investment options based on your risk tolerance.
Regularly review and adjust your investment portfolio to ensure it remains aligned with your retirement goal.
Children's Education and Wedding Expenses:
For short-to-medium-term goals like education and wedding expenses, consider investing in a combination of equity and debt funds, balanced funds, or targeted investment options like children's education funds.
As these expenses are nearer term (within 5-10 years), prioritize capital preservation while aiming for modest growth.
Emergency Fund:
Ensure you have an emergency fund equivalent to 6-12 months of expenses. This will provide a safety net in case of unexpected financial needs.
Regular Review:
Regularly review your financial plan, adjusting your investment allocations and contributions as needed to stay on track with your goals.
Professional Guidance:
Consider consulting with a Certified Financial Planner who can help you create a comprehensive financial plan tailored to your specific goals and circumstances. They can provide personalized advice and guidance to help you achieve your financial objectives efficiently.
Remember, consistency and discipline in your investment approach, along with periodic reassessment of your goals and financial situation, will be key to achieving financial success. With prudent planning and diligent execution, you can work towards building a secure future for yourself and your family.

..Read more

Ramalingam

Ramalingam Kalirajan  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

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I am Sandip Kumar Sahu, 27-year-old. My monthly in-hand salary is 57,000 after deduction of 7500 in PPF. I have a SIP of 10,000 per month and have a portfolio of 1 lakh and every month I buy some stock and have a portfolio of 1 lakh. I manage to save 10-15k after all this investment. How can I best invest these savings to generate a corpus of Rs 10 crore by the time I turn 55 years. Please help me achieve my financial dream.
Ans: Sandip, you're already on a good path with your savings and investments at this young age. Your aspiration of achieving a 10 crore corpus by 55 is ambitious and achievable with disciplined planning.

Firstly, ensure you have an emergency fund set aside, typically 3-6 months of living expenses. Once that's in place, focus on building a diversified investment portfolio.

Given your age and risk appetite, consider allocating a significant portion (around 70-80%) to equity investments for higher growth potential. Equity mutual funds or index funds can be good choices for systematic and disciplined investing.

For the remaining 20-30%, consider debt instruments like fixed deposits or debt mutual funds for stability and to balance out the risk.

Regularly review your portfolio, adjust your investments based on market conditions and your financial goals. Remember, the key is consistency and patience. Compound interest will play a significant role in growing your wealth over time.

Lastly, consider consulting a financial advisor to tailor a plan specific to your needs and aspirations. Here's to your financial success!

..Read more

Ramalingam

Ramalingam Kalirajan  |5260 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jul 08, 2024Hindi
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I am 34 and i want to retire in 40. My current expenses are 20k/months and current income 80k/month. My current savings are post office: 31 lakhs, share: 7 lakhs, MF: 12 lakhs, insurance: 7.5 (going to mature in 2 yrs). How much corpus i need? Where to invest to attain it?
Ans: Assessing Your Retirement Goal
You plan to retire at 40, giving you six years to build your retirement corpus. To estimate your corpus, consider your current expenses, inflation, and life expectancy.

Estimating Retirement Corpus
Current Monthly Expenses
Rs. 20,000 per month.

Annually, this is Rs. 2.4 lakhs.

Adjusting for Inflation
Assuming an inflation rate of 6%, your expenses will increase each year.
Life Expectancy
Assuming you live till 80, you will need funds for 40 years post-retirement.
Current Financial Position
Savings
Post Office Savings: Rs. 31 lakhs.

Shares: Rs. 7 lakhs.

Mutual Funds: Rs. 12 lakhs.

Insurance (maturing in 2 years): Rs. 7.5 lakhs.

Estimating Required Corpus
To provide a rough estimate:

Current annual expenses: Rs. 2.4 lakhs.

Considering 6% inflation, in 6 years, your expenses will be approximately Rs. 3.4 lakhs annually.

For 40 years, without further investment growth, you need Rs. 1.36 crores.

Adding an investment growth factor will reduce this requirement slightly.

Investment Strategy to Attain the Corpus
Diversify Your Investments
Spread investments across different asset classes to balance risk and return.
Equity Mutual Funds
Growth Potential: Invest in equity mutual funds for long-term growth.

Active Management: Prefer actively managed funds for better returns.

Balanced or Hybrid Funds
Risk Management: Hybrid funds balance between equity and debt.

Stability: Provides moderate growth with reduced risk.

Debt Funds
Stability: Invest in short-term and medium-term debt funds for stability.

Liquidity: Provides liquidity and capital protection.

Systematic Investment Plan (SIP)
Regular Investment: Invest regularly in mutual funds through SIP.

Rupee Cost Averaging: Reduces the impact of market volatility.

Leveraging Existing Investments
Post Office Savings
Reinvest Maturity Amount: When these investments mature, reinvest in higher-yielding options.

Consider Partly Redeeming: Redeem part to invest in equity and hybrid funds.

Shares
Review Portfolio: Regularly review and rebalance your stock portfolio.

Diversify: Ensure diversification to reduce risk.

Mutual Funds
Increase Allocation: Increase allocation to equity and balanced funds.

Monitor Performance: Track fund performance and make necessary adjustments.

Insurance Maturity
Reinvest Maturity Proceeds: Use the Rs. 7.5 lakhs maturing in 2 years to invest in balanced funds or equity funds.

Consider ULIPs: If you hold ULIPs, consider surrendering and reinvesting in mutual funds.

Monitoring and Adjusting Your Plan
Regular Reviews: Periodically review your investment portfolio.

Adjust for Market Conditions: Make adjustments based on market performance and changing goals.

Seek Professional Advice: Consult a Certified Financial Planner for personalized strategies.

Final Insights
To retire at 40, you need to build a substantial corpus. Diversify your investments across equity, hybrid, and debt funds. Use SIPs for regular investments and monitor your portfolio closely. Adjust your plan based on market conditions and seek professional advice for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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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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