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Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 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
Asked by Anonymous - May 08, 2024Hindi
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Things to consider while choosing mf policy

Ans: Your interest in understanding mutual fund policies demonstrates a proactive approach to financial planning. Mutual funds can be powerful wealth-building tools when chosen wisely, and considering key factors is essential for making informed decisions.

Understanding Your Goals:

Before selecting mutual fund policies, clarify your financial goals, risk tolerance, and investment horizon. Whether you aim for wealth accumulation, retirement planning, or saving for specific milestones, aligning your investments with your objectives is crucial.

Assessing Investment Objectives:

Different mutual fund policies cater to varying investment objectives, such as growth, income, or a blend of both. Determine whether you seek capital appreciation, regular income, or a combination of both, and choose policies that match your preferences.

Evaluating Risk Profile:

Consider your risk tolerance and investment horizon when selecting mutual fund policies. Equity funds typically carry higher volatility but offer greater growth potential over the long term, while debt funds provide stability but lower returns. Balance your portfolio according to your risk appetite.

Analyzing Fund Performance:

Review the historical performance of mutual fund policies, considering factors such as returns, volatility, and consistency. Look for funds with a track record of delivering competitive returns relative to their peers and benchmark indices.

Assessing Fund Management:

Evaluate the expertise and track record of fund managers managing the policies. Experienced and skilled fund managers can make informed investment decisions, contributing to the overall performance of the funds.

Understanding Costs and Fees:

Consider the expense ratio and other fees associated with mutual fund policies. Lower expense ratios indicate higher returns for investors over time. Additionally, be aware of any entry or exit loads that may impact your investment returns.

Examining Fund Structure:

Understand the structure of mutual fund policies, including open-end and closed-end funds. Open-end funds offer liquidity and flexibility, allowing investors to buy and sell units at NAV prices. Closed-end funds have a fixed number of units and may trade at a premium or discount to NAV.

Considering Tax Implications:

Evaluate the tax implications of mutual fund policies, including capital gains tax on redemptions and dividend distribution tax. Choose tax-efficient options based on your tax bracket and investment objectives.

Seeking Professional Guidance:

Consult with a Certified Financial Planner to assess your financial situation, goals, and risk tolerance. A financial advisor can provide personalized recommendations and help you navigate the complexities of mutual fund policies.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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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Sir My Age is 38 Now. Running Business In Pune city. Below are the My Assets & Liabilities. Current Values - Assets. Own Industrial Plot - Rs. 2.0 Cr Business Income Yearly Rs. 24.00 Lack Own Company Investment ( Machinery, Debtors Etc ) - Rs 2.40 Cr Mutual Fund & Share Market Investment Rs. 2.10 Cr Bank FD - Rs. 50.00 Lack Own 3 Flats in Pune - Rs. 75 lack, 50 Lack & 35 Lack ( Current Values ) Golds - Rs. 25.00 Lack Land - Agriculture - Rs. 50.00 Lack Term Insurances - Rs. 20.00 Lack ( Till Date Premium Paid ) Labilities. House Loan - Rs. 30.00 Lack ( EMI 26500.00 PM ) Loan will close after 17 years. Car Loan - Rs. 6.35 lack ( EMI 12500.00 PM ) Loan will close after 5 years. This Assets & investment sufficient for maintain 7 family members Expenses after retirement ? ( 4 Adult + 3 Children (Below 5 Years) ). I will retire at the age of 45.
Ans: Hello;

What is the expected monthly rental from industrial plot and machinery?

Are you currently occupying one of the flats mentioned here or are all of them given on rent?

Also your term life insurance is very low. You should have minimum term insurance cover of 2.4 Cr.

You have good assets in agri land, industrial land, gold, real estate but they are relatively illiquid when need arises hence term insurance cover with riders for critical care and accident benefit are an absolute must!

Considering the home loan tenure of 17 years and 3 small kids in the family to be supported for education and decent lifestyle, I am not sure if you can retire in 7 years timeframe from now.

However I would appreciate your reply to my queries above, before I give my firm view about your retirement in 7 years timeframe.

Best wishes;

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Asked by Anonymous - Oct 30, 2024Hindi
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I have around 1 crore to invest. I am 61 years old retired defence officer and pension amounting to around ?1,50,000/- per month and medically covered. Need some sound investment plan for 1 crore. Don't have any liabilities?
Ans: Hello;

You may invest your corpus into following two funds in proportion of 50:50,

1. Kotak Arbitrage fund (low risk)
You may consider modest return of 6% from this scheme.

2. ICICI Pru equity savings fund (low to moderate risk). You may consider modest return of 8% from this scheme.

Theses investments will retain purchasing power of your corpus aginst inflation and deliver some real returns too with low to moderate risk.

This is in accordance with your age and commensurate risk appetite.

Happy Investing;

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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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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