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Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 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 - Jun 12, 2024Hindi

I am unmarried women age 35 I am self employed. my earning is not fixed sometimes I earn 25k monthly or 35k or 50k monthly. How do I invest? Monthly or quarterly or annually at the end of year.

Ans: Planning your investments effectively is essential for building a secure financial future, especially when your income is variable. Let's explore how you can navigate this unique challenge with a strategic approach to investing.

Understanding Your Financial Landscape
Before diving into investment strategies, it's important to understand your financial landscape. As a self-employed individual, your income fluctuates, making it crucial to manage your cash flow efficiently. Track your monthly expenses and income to get a clear picture of your financial situation. This will help you identify how much you can realistically set aside for investments.

Emergency Fund: Your Financial Safety Net
An emergency fund is the foundation of any sound financial plan. Aim to save at least six to twelve months' worth of expenses in a liquid and easily accessible account. This fund will provide a cushion during lean months when your income might be lower. Having an emergency fund in place will ensure you don't have to dip into your investments for unforeseen expenses.

Choosing the Right Investment Frequency
With a variable income, you might wonder whether to invest monthly, quarterly, or annually. Each approach has its merits, and the best choice depends on your cash flow and discipline.

Monthly Investments:

Monthly investments can help in averaging out the cost of investments over time. This method, known as Rupee Cost Averaging, involves investing a fixed amount regularly, irrespective of market conditions. It reduces the risk of investing a large sum at an inopportune time.

Quarterly Investments:

If your cash flow is inconsistent, quarterly investments might be a suitable middle ground. This approach allows you to accumulate funds over three months, making it easier to invest a lump sum. It also provides some flexibility to manage your finances.

Annual Investments:

Annual investments can be effective if you have a significant inflow of funds at specific times of the year. However, this approach carries the risk of market timing, where you might end up investing a large sum during market highs. To mitigate this risk, consider splitting your annual investment into two or three parts.

The Power of Goal-Based Investing
Identify your financial goals and their timelines. Common goals include building a retirement corpus, buying a house, or traveling. Assigning a timeframe and estimated cost to each goal will help you determine the investment horizon and risk tolerance for each.

Building a Diversified Portfolio
A diversified portfolio balances risk and reward by spreading investments across different asset classes. As a Certified Financial Planner, I recommend considering the following asset classes:

Equity Mutual Funds:

Equity mutual funds offer the potential for high returns over the long term. These funds invest in stocks and are suitable for goals with a horizon of five years or more. Given your fluctuating income, it's advisable to start with a Systematic Investment Plan (SIP) to benefit from Rupee Cost Averaging.

Debt Mutual Funds:

Debt mutual funds invest in fixed-income securities like bonds and treasury bills. They are less volatile than equity funds and provide steady returns. Debt funds are ideal for short to medium-term goals, helping to balance your portfolio's overall risk.


Gold is a traditional investment that acts as a hedge against inflation and economic uncertainty. While it's not advisable to allocate a large portion of your portfolio to gold, a small percentage can provide stability. Consider investing in gold ETFs or sovereign gold bonds for better liquidity and returns.

Diversifying Internationally:

Investing a portion of your portfolio in international funds can provide exposure to global markets and reduce risk. These funds invest in equities of foreign companies, offering potential for growth and diversification.

Actively Managed Funds vs. Index Funds
There are key differences between actively managed funds and index funds. Actively managed funds involve a team of experts making investment decisions, aiming to outperform the market. They have the potential for higher returns, especially in volatile markets, due to professional management.

On the other hand, index funds passively track a market index and typically have lower fees. However, they may not offer the same level of flexibility and expertise as actively managed funds. Given the nuances of your financial situation, actively managed funds may provide a strategic advantage by leveraging expert insights to navigate market fluctuations.

The Benefits of Regular Funds Through a Certified Financial Planner
Investing through regular funds with the guidance of a Certified Financial Planner (CFP) offers significant advantages. CFPs provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon. They help you navigate complex market conditions and make informed decisions.

Regular funds involve a small fee paid to the mutual fund distributor (MFD), who can assist with portfolio reviews, rebalancing, and goal tracking. This professional support can be invaluable, ensuring your investments align with your financial objectives and adapt to changing market conditions.

Balancing Insurance and Investment
It's crucial to separate your insurance and investment needs. While insurance products with investment components, like ULIPs and endowment policies, might seem attractive, they often come with high charges and lower returns. Pure insurance policies, such as term insurance, provide adequate coverage at a lower cost.

If you currently hold LIC, ULIP, or investment-cum-insurance policies, consider surrendering them and reinvesting the proceeds in mutual funds. This can potentially enhance your returns and provide better liquidity.

Tax Planning and Investments
Effective tax planning can significantly impact your overall returns. Utilize tax-saving instruments under Section 80C, such as Equity Linked Savings Schemes (ELSS), Public Provident Fund (PPF), and National Savings Certificate (NSC). ELSS funds, in particular, offer the dual benefit of tax savings and potential for high returns due to their equity exposure.

Automating Your Investments
Automating your investments can simplify the process and ensure consistency. Set up automated transfers to your investment accounts, aligning with your chosen investment frequency. This approach reduces the temptation to time the market and ensures you stay on track with your financial goals.

Reviewing and Rebalancing Your Portfolio
Regularly review your portfolio to ensure it aligns with your goals and risk tolerance. Life events, market conditions, and changes in income can impact your financial situation. Rebalancing your portfolio periodically helps maintain the desired asset allocation and manage risk.

Understanding Investment Risks
All investments come with inherent risks, and it's essential to understand these before making decisions. Equity investments can be volatile in the short term but tend to provide higher returns over the long term. Debt investments offer more stability but usually yield lower returns compared to equities.

Assess your risk tolerance honestly. Given your variable income, a balanced approach that includes both equity and debt investments can provide growth potential while managing risk.

Leveraging Professional Guidance
Engaging a Certified Financial Planner can provide invaluable insights and strategies tailored to your specific needs. A CFP can help you create a comprehensive financial plan, monitor your progress, and adjust strategies as needed. This professional guidance can be especially beneficial given your variable income and the complexities of investment options.

Empathy and Understanding Your Journey
We understand the unique challenges faced by self-employed individuals with fluctuating incomes. It's commendable that you are taking proactive steps towards securing your financial future. Your commitment to understanding and improving your financial situation is a crucial first step.

Genuine Compliments and Encouragement
Your decision to seek guidance and plan your investments is praiseworthy. It demonstrates foresight and a strong commitment to financial well-being. By leveraging these insights and strategies, you are setting yourself on a path to achieving your financial goals.

Final Insights
Investing effectively with a variable income requires a strategic and disciplined approach. Start by understanding your financial landscape, building an emergency fund, and choosing the right investment frequency. Goal-based investing and a diversified portfolio can help balance risk and reward.

Actively managed funds, with professional guidance from a Certified Financial Planner, offer strategic advantages over index and direct funds. Separating insurance and investment needs, effective tax planning, and automating investments can enhance your financial strategy. Regular reviews and rebalancing ensure your portfolio stays aligned with your goals.

Your proactive approach to financial planning is commendable. By implementing these strategies, you can navigate the challenges of a variable income and build a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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 Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 02, 2024

Hi sir, I am housewife age 40 my husband business man.two children . Son college 1st year daughter 11 studying. Own house 2tent montly 12000. My house expenses use it . My husband children study her handle. Lastyear ijoin the part time job montly 5000/ how to invest . Montly. My bank balance zero. Pls guide me
Ans: I understand your situation and am here to guide you on how to wisely invest your income as a housewife, balancing your family's needs and securing your financial future.

Managing household expenses while handling a part-time job shows your dedication and commitment towards your family's financial stability. Your willingness to invest for the future is commendable.

Understanding Your Financial Goals
Current Situation:

Age 40, housewife.
Husband is a businessman.
Two children: Son in college (1st year) and daughter in 11th grade.
Monthly tent income of Rs 12,000 from two houses, covering household expenses.
Part-time job income of Rs 5,000 per month recently started.
Bank balance is zero.
Financial Goals:

Secure financial future for yourself and your family.
Invest wisely to build savings and generate additional income.
Budgeting and Investment Strategy
Monthly Income and Expenses Analysis:

Monthly income: Rs 17,000 (tent income + part-time job).
Expenses covered by tent income: Household expenses.
Investment Potential:

Focus on saving and investing a portion of your income for future needs and emergencies.
Types of Investments
Investing wisely involves understanding different options and their benefits:

1. Systematic Investment Plan (SIP)

SIPs allow you to invest regularly in mutual funds.
They help in disciplined savings and benefit from rupee cost averaging.

Systematic approach to investing.
Suitable for long-term wealth creation.

Market fluctuations can impact short-term returns.
Need for patience and staying invested for long-term benefits.
2. Debt Mutual Funds

Debt funds invest in fixed-income securities like bonds and treasury bills.
They offer stable returns with lower risk compared to equity funds.

Capital preservation.
Regular income through interest payouts.

Interest rate risk: Values of existing bonds may decrease with rising interest rates.
Credit risk: Possibility of default by bond issuers.
3. Recurring Deposits (RD)

RDs are fixed-income instruments offered by banks.
Regular monthly deposits for a fixed tenure with predetermined interest rates.

Safe investment option.
Fixed returns and disciplined savings.

Lower returns compared to equity investments.
Interest rate fluctuations affecting future returns.
Power of Compounding
Understanding compounding can help you make informed investment decisions:


Compounding is reinvesting your earnings to generate additional earnings over time.
Helps in growing your wealth exponentially with long-term investments.

Maximizes returns through reinvestment.
Accelerates wealth accumulation over time.

Investing regularly in SIPs or RDs allows you to benefit from compounding and build a substantial corpus for future needs.
Managing Risk
Risk Appetite:

As a conservative investor, focus on low to moderate risk investments like debt funds and RDs.
Avoid high-risk investments like direct equity or speculative instruments.

Spread investments across different asset classes to reduce overall risk.
Balance between fixed-income investments (like RDs and debt funds) and equity-oriented investments (like SIPs) for growth potential.
Financial Planning for Children's Education
Education Planning:

Plan for your children's higher education expenses systematically.
Estimate future costs and start investing early to meet these goals.
Investment Allocation:

Allocate a portion of your savings towards education funds through SIPs or targeted investment plans.
Building an Emergency Fund
Emergency Fund Importance:

Maintain an emergency fund equivalent to at least 6-12 months of expenses.
Helps in covering unexpected financial needs without disturbing long-term investments.
Liquid Investments:

Utilize liquid funds or keep a portion of savings in easily accessible instruments for emergency needs.
Final Insights
By adopting a disciplined approach to savings and investing, you can achieve financial security and meet your future goals effectively. Here’s a summary of the key steps:

Budgeting and Income Analysis: Understand your monthly income and expenses.
Investment Strategy: Focus on SIPs, debt funds, and recurring deposits for stable returns.
Power of Compounding: Reinvest earnings to benefit from long-term wealth creation.
Risk Management: Opt for low to moderate risk investments aligned with your risk tolerance.
Education Planning: Start investing early for your children's education expenses.
Emergency Fund: Maintain liquidity for unforeseen expenses without affecting long-term investments.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

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

Asked by Anonymous - Jun 23, 2024Hindi
I am 34 year old my salary is 30000, wife is house wife, have 2 daughters 8year and 2 year old one son 6 year old, i can invest 8000 per month now, how i should invest so i can manage my kids studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: Managing your finances with a focus on your kids' education and your retirement is commendable. Let’s dive into a detailed plan tailored for you.

Understanding Your Financial Goals
Your primary goals seem to be:

Ensuring a secure and quality education for your three kids.
Building a retirement corpus for a comfortable future.
Managing current expenses effectively while saving for future needs.
Each goal needs a specific strategy to ensure balanced growth and security.

Evaluating Your Current Financial Situation
With a salary of Rs 30,000 and a housewife spouse, it's essential to optimize your Rs 8,000 monthly savings. Your family responsibilities require prudent planning and disciplined saving habits.

Importance of a Diversified Portfolio
Investing across various assets is crucial. A diversified portfolio minimizes risk and maximizes returns. Let’s break down how you can allocate your Rs 8,000 monthly investment.

Prioritizing Emergency Fund
Before diving into investments, an emergency fund is vital. Aim to save 3-6 months' worth of expenses. This cushion will protect you from unexpected financial disruptions.

Building a Children's Education Fund
Education costs rise every year. Start a dedicated fund for each child’s education. Equity mutual funds are a strong option here due to their potential for high returns over a long period. While equity funds are volatile in the short term, they tend to outperform other asset classes in the long term.

Benefits of Actively Managed Equity Funds:

Professional management ensures informed investment decisions.
Potential for higher returns compared to passive index funds.
Active managers can navigate market volatility better.
Disadvantages of Index Funds:

Lack of flexibility in stock selection.
Possible underperformance in volatile markets.
Limited ability to react to market changes.
Planning for Retirement
Retirement planning should not be delayed. A systematic investment in mutual funds can create a substantial corpus. Since you have a long investment horizon, equity funds are suitable for this goal too.

Choosing Regular Funds Over Direct Funds
While direct funds have lower expense ratios, regular funds offer advantages through the guidance of a Certified Financial Planner (CFP). Regular funds come with:

Professional advice tailored to your financial goals.
Assistance in portfolio rebalancing.
Guidance during market volatility.
Insurance: Protection First
If you hold LIC, ULIP, or other investment-cum-insurance policies, it might be beneficial to surrender these and reinvest the proceeds into mutual funds. Pure term insurance is a better option for financial protection without the high costs of investment-linked insurance plans.

Systematic Investment Plan (SIP) Strategy
A SIP is an excellent way to invest consistently. Here’s a proposed allocation for your Rs 8,000 monthly investment:

Children’s Education Fund: Rs 4,000
Retirement Fund: Rs 3,000
Emergency Fund: Rs 1,000
As your salary increases, you can proportionally increase these investments.

Regular Review and Rebalancing
Financial planning is not a one-time activity. Regularly review your portfolio and rebalance it to align with your goals. A CFP can assist in these reviews and make necessary adjustments.

Tax Planning and Benefits
Investments in certain mutual funds offer tax benefits under Section 80C. Equity Linked Savings Schemes (ELSS) are mutual funds that provide tax deductions and have the potential for higher returns.

Importance of Discipline and Patience
Investing is a long-term commitment. Stay disciplined with your SIPs and avoid withdrawing funds unless absolutely necessary. Patience is key to achieving your financial goals.

Final Insights
To summarize:

Start with an emergency fund for financial security.
Allocate funds to children’s education and your retirement.
Opt for actively managed mutual funds over index funds.
Consider regular funds with professional guidance over direct funds.
Review and adjust your portfolio regularly with a CFP’s help.
Take advantage of tax-saving investment options.
With disciplined saving and informed investment decisions, you can secure your children’s future and build a comfortable retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

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

Asked by Anonymous - Jun 29, 2024Hindi
I am 46 year old my salary is 25000, wife is house wife, have only one son 16 year old, i can invest 6000 per month now, how i should invest so i can manage my kids studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: Managing your finances while planning for your son's education and your retirement is important. You’re already on the right track by wanting to invest Rs. 6,000 per month. Let's dive into a detailed plan.

Understanding Your Current Financial Situation
You're 46 years old with a monthly salary of Rs. 25,000. Your wife is a homemaker, and you have a 16-year-old son. You can invest Rs. 6,000 monthly, and you plan to increase this amount as your salary grows.

Setting Clear Financial Goals
First, let's define your financial goals:

Your Son's Education: Your son is 16, so he’ll soon need funds for higher education.

Your Retirement: Building a retirement fund to ensure financial security in your later years.

Prioritizing Your Investments
We’ll prioritize your investments based on your goals. Here’s a step-by-step approach.

Emergency Fund
Before diving into investments, ensure you have an emergency fund. This should cover at least 6 months of living expenses. This fund provides a safety net for unexpected expenses.

Target Amount: Rs. 1,50,000 (approx. Rs. 25,000 * 6)
Where to Keep: High-interest savings account or liquid mutual funds
Investing in Mutual Funds
Mutual funds are a great way to grow your investments. They offer diversification and professional management. Here’s how you can allocate your Rs. 6,000 monthly investment.

Diversifying Your Mutual Fund Investments
1. Equity Mutual Funds

Equity mutual funds invest in stocks. They offer high returns over the long term but come with higher risks. Suitable for your retirement and long-term goals.

Large-Cap Funds: Invest in well-established companies. They provide stable returns with lower risk.
Mid-Cap and Small-Cap Funds: Invest in smaller companies with high growth potential. They are riskier but offer higher returns.
2. Debt Mutual Funds

Debt mutual funds invest in fixed-income securities like bonds. They are less risky and provide regular income. Suitable for short to medium-term goals like your son's education.

Short-Term Debt Funds: Provide stability and are less volatile. Good for parking funds needed in the next few years.
Long-Term Debt Funds: Suitable for generating regular income over a longer period.
3. Balanced or Hybrid Funds

Balanced or hybrid funds invest in both equity and debt. They offer a balanced approach with moderate risk and returns. Good for medium-term goals.

Sample Investment Allocation
Given your current investment capacity, here’s a suggested allocation of your Rs. 6,000 monthly investment:

Large-Cap Equity Fund: Rs. 2,000
Mid-Cap Equity Fund: Rs. 1,000
Short-Term Debt Fund: Rs. 1,500
Balanced Fund: Rs. 1,500
Investing for Your Son’s Education
Your son is 16, and higher education expenses are imminent. Here’s how to plan:

1. Estimate Education Costs

Estimate the total cost of your son’s higher education. Include tuition fees, living expenses, books, and other costs. Adjust for inflation, as education costs tend to rise.

2. Investment Strategy

Short-Term Investments: Since your son will need the money soon, focus on less volatile investments. Short-term debt funds and balanced funds are suitable.
Systematic Investment Plan (SIP): Continue with SIPs in mutual funds to accumulate the required corpus.
Retirement Planning
Planning for retirement is crucial. Here’s a strategy to build your retirement corpus:

1. Estimate Retirement Corpus

Calculate the amount needed for a comfortable retirement. Consider your living expenses, inflation, and life expectancy.

2. Long-Term Investments

Equity Mutual Funds: Allocate a significant portion to equity funds for higher growth.
Systematic Withdrawal Plan (SWP): In retirement, use SWPs to provide a regular income from your mutual fund investments.
Increasing Investments Over Time
As your salary increases, incrementally increase your investments. Even small increases can significantly impact your long-term corpus due to compounding.

1. Regular Review

Regularly review and adjust your investment portfolio based on your goals, risk tolerance, and market conditions. Consider consulting a Certified Financial Planner (CFP) for personalized advice.

2. Stay Disciplined

Stick to your investment plan and avoid making impulsive decisions based on market fluctuations. Staying disciplined is key to achieving your financial goals.

Insurance Coverage
1. Health Insurance

Ensure you have adequate health insurance coverage for your family. Medical emergencies can deplete your savings quickly.

2. Term Life Insurance

Consider a term life insurance policy to secure your family’s financial future in case of unforeseen circumstances. It provides a large cover at a low premium.

Avoiding Real Estate and Other Options
Given your financial goals and monthly investment capacity, real estate is not recommended due to its illiquid nature and high costs.

1. Active Management vs. Index Funds

Active management in mutual funds can potentially offer higher returns than index funds. Fund managers actively choose stocks to outperform the market.

Final Insights
Shiva, your dedication to planning for your son’s education and your retirement is commendable. Here’s a recap:

Emergency Fund: Maintain a fund covering 6 months of expenses.
Diversified Mutual Fund Portfolio: Allocate Rs. 6,000 monthly across equity, debt, and balanced funds.
Short-Term Investments: Focus on less volatile funds for your son’s education.
Long-Term Investments: Prioritize equity funds for retirement.
Increase Investments: Gradually increase your investments as your salary grows.
Insurance Coverage: Ensure adequate health and life insurance.
By following this plan, you can secure your son’s education and build a comfortable retirement fund. Stay disciplined, review your investments regularly, and adjust as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

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

Asked by Anonymous - Jun 30, 2024Hindi
I am 36 year old my salary is 75000, wife is house wife, have one son 6 year old, i can invest 30000 per month now, how i should invest so i can manage my kid studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: It’s wonderful that you’re considering your family’s future and making a plan for your child’s education and your retirement. Let’s break down a comprehensive strategy for you.

Understanding Your Financial Goals
You have a clear goal to manage your child’s education and build a retirement fund. Investing Rs 30,000 per month is a great start. Let’s structure a plan that balances both objectives.

Investment Strategy Overview
You’re 36 years old, earning Rs 75,000 per month, and planning to invest Rs 30,000 monthly. Here’s how you can allocate your investments effectively.

Diversification: The Key to Balanced Growth
Diversification helps in spreading risk across various assets. By diversifying your investments, you can achieve growth and stability. Here's how you can do it:

Equity Mutual Funds
Equity mutual funds are ideal for long-term growth. They invest in stocks, which can offer high returns. Here are some options:

Large-Cap Funds: These invest in well-established companies. They offer stable growth with lower risk.
Mid-Cap Funds: These invest in medium-sized companies. They have higher growth potential but come with moderate risk.
Small-Cap Funds: These invest in small companies. They offer high growth but are riskier.
Multi-Cap Funds: These invest in companies of all sizes. They provide diversification within equities.
Debt Mutual Funds
Debt mutual funds invest in fixed-income securities like bonds. They offer stable returns with lower risk. Here are some options:

Short-Term Debt Funds: Suitable for stability and liquidity.
Medium-Term Debt Funds: Offer better returns with moderate risk.
Long-Term Debt Funds: Suitable for long-term goals, providing higher returns with interest rate risk.
Balanced Funds
Balanced funds, also known as hybrid funds, invest in both equities and debt. They offer a balanced approach, providing growth and stability.

Allocating Your Monthly Investment
Here’s a suggested allocation for your Rs 30,000 monthly investment:

Equity Funds: Rs 18,000 (60%)
Debt Funds: Rs 9,000 (30%)
Balanced Funds: Rs 3,000 (10%)
This allocation balances growth potential with risk management.

Investing for Your Child’s Education
Your child’s education is a major goal. Planning ahead ensures you can meet future expenses. Here’s how you can do it:

Child Education Fund
Start a dedicated child education fund. Invest in equity mutual funds for long-term growth. Consider the following:

Equity Funds: Allocate a significant portion to large-cap and multi-cap funds. These offer stable growth over the long term.
SIP (Systematic Investment Plan): Invest a fixed amount regularly. SIPs help in averaging the cost and benefit from market fluctuations.
Regular Monitoring
Review the fund performance regularly. Adjust the investment strategy as needed to ensure it stays on track.

Building a Retirement Corpus
Planning for retirement early ensures you build a substantial corpus. Here’s how you can do it:

Retirement Fund
Start a dedicated retirement fund. Diversify across equity, debt, and balanced funds. Consider the following:

Equity Funds: Allocate to large-cap and multi-cap funds for growth.
Debt Funds: Allocate to short-term and medium-term debt funds for stability.
Balanced Funds: Allocate a small portion to balanced funds for a mix of growth and stability.
Power of Compounding
The power of compounding is a key factor in building your retirement corpus. The longer you stay invested, the more your money grows.

Managing Risk
Investing involves risk. Here’s how to manage it effectively:

Diversifying across various asset classes and fund types reduces risk. This ensures poor performance in one area is offset by better performance in another.

Regular Reviews
Regularly review your investments. Adjust your strategy based on market conditions and personal goals.

Emergency Fund
Maintain an emergency fund. This ensures you don’t need to liquidate your investments during emergencies.

Increasing Investments with Salary Hikes
As your salary increases, you can increase your investments. Here’s how to plan for it:

Incremental Investments
Increase your monthly investments proportionally with your salary hikes. This boosts your investment corpus significantly over time.

Rebalance your portfolio regularly. Ensure your asset allocation aligns with your risk tolerance and financial goals.

Monitoring and Adjusting Your Strategy
Regular Monitoring
Monitor your investments every six months. Check fund performance and adjust your investments as needed.

Annual Review
Conduct a comprehensive review annually. Rebalance your portfolio to align with your changing financial goals and market conditions.

Final Insights
Your commitment to investing Rs 30,000 per month for your child’s education and retirement is commendable. By diversifying your investments across equity, debt, and balanced funds, you balance growth and stability.

Regular monitoring, rebalancing, and increasing investments with salary hikes ensure you stay on track to achieve your goals. Investing through a Certified Financial Planner ensures you get personalized advice tailored to your needs.

Your disciplined approach and strategic planning will lead you to a secure financial future for your family. Stay committed, stay informed, and keep your long-term goals in sight.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |5108 Answers  |Ask -

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

Asked by Anonymous - Jul 07, 2024Hindi
Hi I'm 33 years old single male with 60 k salary per month I have 16 lakhs in my savings account but i don't have any policies or any other investments my monthly expenses are around 40 k don't have my own home please suggest me where to invest and how to invest
Ans: You earn Rs. 60,000 per month.

You have Rs. 16 lakhs in savings.

Your monthly expenses are Rs. 40,000.

Let's plan a 360-degree investment strategy for you.

Emergency Fund
Keep an emergency fund.

It should cover 6 months of expenses.

This means Rs. 2.4 lakhs.

Keep it in a liquid account.

Health and Life Insurance
Get health insurance.

Cover at least Rs. 5 lakhs.

Health issues can lead to high costs.

Consider term life insurance.

It is cheaper and gives high cover.

Cover at least 10 times your annual income.

This means Rs. 72 lakhs.

Systematic Investment Plans (SIPs)
SIPs are a great way to invest.

They help in disciplined investing.

Invest Rs. 10,000 per month in SIPs.

Choose a mix of large-cap, mid-cap, and small-cap funds.

This ensures diversification.

Actively managed funds can outperform.

They have fund managers who track the market.

This can lead to better returns.

Public Provident Fund (PPF)
PPF is a safe investment.

It offers tax benefits.

Invest Rs. 1.5 lakhs per year.

This is for long-term savings.

It has a 15-year lock-in period.

This helps in building a retirement corpus.

Diversify your investments.

Don't put all money in one type of investment.

Use mutual funds for diversification.

They spread risk across many stocks.

Goal-based Investing
Identify your goals.

Short-term goals can be 1-3 years.

Medium-term goals can be 3-7 years.

Long-term goals can be 7+ years.

Choose investments based on these goals.

Regular Review
Review your investments regularly.

Ensure they align with your goals.

Make adjustments as needed.

Tax Planning
Invest in tax-saving instruments.

They reduce your taxable income.

Options include ELSS funds and PPF.

This helps in efficient tax planning.

Financial Planner
Consult a Certified Financial Planner.

They provide professional advice.

They help in making informed decisions.

They track market trends.

This helps in optimizing your investments.

Final Insights
Start with an emergency fund and insurance.

Then, invest in SIPs and PPF.

Diversify your portfolio.

Review your investments regularly.

Seek advice from a Certified Financial Planner.

This ensures a well-rounded financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

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Tech Entrepreneur, Educationist - Answered on Jul 22, 2024

Asked by Anonymous - Jul 21, 2024Hindi
A doctorate from IIT Bombay in Metallurgy and masters from NIT in Manufacturing with 5 years of experience including 2 years in academics and currently working from past 3 years in industry where I work mostly on finite element analyst of forging and bulk extrusion process and New product development as manager heading a team of 5 people. I have working knowledge of 3-4 FE software related to metal forming domain along with ANSYS STRUCTURAL. Despite that I am not getting any interview calls as I am currently looking for a job switch and have put up my profile both on NAUKRI AND LINKEDIN. Some calls are coming to me but that are all irrelevant profiles in which my expertise is not there. I have been trying for the past 6 months but have not got any positive response. Despite such a highly educated person from premier institute and not getting any response is highly depressing. Could you suggest how to apply and where to apply and any other website where I shall make my profile to get a positive response ? Thanks. .................
Ans: You have accomplished academic background and work in a very specialised area. You may have to expand your job search to a broader field of Metalurgy, Product Managment, Operations and not be limited to Finite Element analysis. Think through again and look for companies active in the field of metallury and users and producers of Steel, Metals. You may also look at academics. Use your academic contacts in the two IIT--IIT B and NIT, previous employers and seek their help in connecting you with possible openings. You also need to give yourself more time and be optimistic.

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Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 21, 2024Hindi
Meri umar 46 sal hai 60ke bad 2lak rs mahine ka inkam chahta hun sip me ktane investment karu
Ans: Planning for Post-Retirement Income
You are 46 years old and want a monthly income of Rs 2 lakh after 60. Let's create a strategy to achieve this goal through SIP investments.

Assessing Your Current Situation
Current Age: 46 years
Retirement Age: 60 years
Target Monthly Income Post-Retirement: Rs 2 lakh
Time Horizon: 14 years
Estimating Required Corpus
To generate a monthly income of Rs 2 lakh, you need a substantial retirement corpus. Let's estimate the corpus required using a safe withdrawal rate of 4%.

Annual Income Required: Rs 2 lakh x 12 = Rs 24 lakh
Corpus Needed: Rs 24 lakh / 4% = Rs 6 crore
SIP Investment Strategy
To accumulate Rs 6 crore in 14 years, consistent SIP investments are crucial. Let's determine the monthly SIP amount needed.

Calculate Monthly SIP Amount
The calculation involves assumptions about expected returns. Assume an annual return of 12% from equity mutual funds.

Using an online SIP calculator:

Corpus Required: Rs 6 crore
Time Horizon: 14 years
Expected Annual Return: 12%
The estimated monthly SIP amount needed is around Rs 1 lakh.

Recommendations for SIP Investments
Diversify Your Portfolio
Equity Funds: Focus on diversified equity funds for higher growth.
Balanced Funds: Include balanced funds for stability and moderate returns.
Debt Funds: Allocate a portion to debt funds for lower risk.
Regularly Review and Adjust
Monitor Performance: Regularly review your portfolio's performance.
Adjust Allocations: Adjust allocations based on market conditions and goals.
Gradually Increase SIP Amount
Step-Up SIP: Increase your SIP amount annually to boost corpus growth.
Bonus or Increment: Use bonuses or salary increments to increase investments.
Final Insights
To achieve a post-retirement income of Rs 2 lakh per month, you need to accumulate around Rs 6 crore.

Start with a monthly SIP of around Rs 1 lakh.
Diversify your investments across equity, balanced, and debt funds.
Regularly review and adjust your portfolio.
Gradually increase your SIP amount over time.
By following this strategy, you can achieve your retirement income goal. Consult a Certified Financial Planner to tailor the plan to your specific needs and circumstances.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


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Ramalingam Kalirajan  |5108 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 03, 2024Hindi
Hi My per annum package is around Rs. 21 lacs. I have a home loan EMI of Rs. Rs. 2.28 lacs. I have investment of Rs. 3.6 lacs in various insurance schems. Apart from that I have some investment of Rs. 200000 in MF. Please guide me how much investment I need to do for tax savings ?
Ans: Income and Existing Investments
Annual Package: Rs 21 lakhs
Home Loan EMI: Rs 2.28 lakhs per annum
Insurance Investments: Rs 3.6 lakhs
Mutual Fund Investments: Rs 2 lakhs
Tax Saving Investments Under Section 80C
To maximize tax savings under Section 80C, you can invest up to Rs 1.5 lakhs per annum. Here’s a breakdown:

Existing Eligible Investments
Home Loan Principal Repayment: Part of your home loan EMI goes towards principal repayment, which qualifies under Section 80C.
Insurance Premiums: The Rs 3.6 lakhs in insurance schemes might include premium payments that are eligible under Section 80C.
Additional Investments Required
Calculate Existing Deductions: First, identify the portion of your EMI and insurance premiums that qualify for Section 80C. Let's assume your home loan principal repayment is Rs 1 lakh per annum and the insurance premiums are Rs 50,000 per annum.
Investment Suggestions for Additional Tax Savings
To fully utilize the Rs 1.5 lakhs limit, you need to invest an additional Rs 50,000.

Equity-Linked Savings Schemes (ELSS)
Benefits: ELSS funds offer tax savings and have the potential for high returns.
Lock-in Period: They come with a 3-year lock-in period, the shortest among all tax-saving options under Section 80C.
Public Provident Fund (PPF)
Benefits: PPF offers tax-free returns and is a safe investment option.
Lock-in Period: 15-year lock-in, but partial withdrawals are allowed after the 7th year.
Sukanya Samriddhi Yojana (SSY)
Benefits: If you have a daughter, SSY is a good option with attractive interest rates and tax benefits.
Lock-in Period: Till the daughter turns 21 or gets married after the age of 18.
National Savings Certificate (NSC)
Benefits: NSC is a safe investment option with a fixed interest rate.
Lock-in Period: 5 years.
Voluntary Provident Fund (VPF)
Benefits: You can contribute more than your mandatory EPF contribution.
Returns: Similar to EPF returns and safe.
Other Tax-Saving Sections
Section 80D - Health Insurance Premium
Benefits: Deduction up to Rs 25,000 for self, spouse, and children. Additional Rs 25,000 for parents under 60 and Rs 50,000 if they are over 60.
Section 80E - Education Loan Interest
Benefits: Deduction on interest paid on education loans for higher studies.
Section 24 - Home Loan Interest
Benefits: Deduction up to Rs 2 lakhs on interest paid on home loan.
Review and Reallocate Existing Investments
Insurance Policies
Evaluation: Assess if your insurance policies are purely for investment or provide adequate life cover.
Reallocation: Consider surrendering or reducing investment-cum-insurance policies and reallocating to mutual funds.
Mutual Funds
Focus on Growth: Since your goal is wealth creation, consider allocating more to equity funds for higher growth potential.
Final Insights
Maximize Section 80C: Utilize the full Rs 1.5 lakh limit under Section 80C with a mix of ELSS, PPF, and SSY.
Diversify: Ensure your portfolio is diversified across different asset classes for balanced growth and risk management.
Regular Monitoring: Periodically review and adjust your investments to stay aligned with your financial goals.
Certified Financial Planner: Consider consulting a Certified Financial Planner for personalized advice and strategy.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


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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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