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Financial Planner - Answered on Feb 20, 2024

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Asked by Anonymous - Feb 19, 2024Hindi
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What can give better returns in the long run? Investing in MF SIPs or investing in stock SIPs? I would like to invest Rs 60,000 each every month in stocks as well as MFs directly.

Ans: Deciding between investing in Mutual Fund Systematic Investment Plans (SIPs) and Stock Systematic Investment Plans depends on various factors including your risk tolerance, investment goals, time horizon, and knowledge of the stock market.

Here are some considerations for both options:

Mutual Fund SIPs:

• Diversification: Mutual funds offer diversification across a range of stocks or other assets, reducing the risk compared to investing in individual stocks.
• Professional Management: Mutual funds are managed by professional fund managers who make investment decisions on your behalf, based on their research and expertise.
• Accessibility: Mutual funds are accessible to investors with varying levels of knowledge and experience in the stock market.
• Lower Risk: Generally, mutual funds are considered lower risk compared to individual stocks due to diversification.

Stock SIPs:

• Potential for Higher Returns: Investing directly in stocks can offer higher returns if you pick the right stocks. Some individual stocks have the potential for significant growth over time.
• Control: With stock SIPs, you have more control over your investment decisions and can choose which stocks to invest in based on your own research and analysis.
• Higher Risk: Investing directly in stocks carries higher risk compared to mutual funds due to lack of diversification. If you choose poorly performing stocks, your portfolio may suffer.
• Requires Research and Monitoring: Investing in individual stocks requires a good understanding of the companies you're investing in and regular monitoring of their performance.

Decision:

Considering your investment amount of Rs 60,000 each per month in both stocks and mutual funds, you could consider a hybrid approach:

• Allocate a portion of your investment towards mutual fund SIPs for diversification and lower risk.
• Allocate the remaining portion towards stock SIPs if you're willing to take on higher risk for potentially higher returns and have the time and knowledge to research and monitor individual stocks.

It's also advisable to consult with a financial advisor who can assess your individual financial situation and help you create a personalised investment plan tailored to your goals and risk tolerance. Additionally, past performance of investments is not indicative of future results, so make sure to consider all factors before making your decision.
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

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Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jul 04, 2024Hindi
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Hi , opting MF for one time investment (ex-for 5years) is better or investing every month as SIP is better? which one you suggest us to go for? Thanks in advance.
Ans: Choosing between a one-time investment and a monthly SIP depends on your financial goals, risk tolerance, and market conditions. Let's analyse both options.

One-Time Investment
Pros:

Lump Sum Growth: You invest a large amount at once. It grows over time, potentially benefiting from market upswings.

Immediate Exposure: Your entire amount is exposed to the market right away. This can be beneficial if the market rises soon after your investment.

No Monthly Commitment: Once invested, you don't need to remember to invest every month.

Cons:

Market Timing Risk: A single investment is subject to market volatility. If the market drops right after you invest, your portfolio can lose value quickly.

No Cost Averaging: You miss out on the benefits of rupee cost averaging. This can lead to higher risk during market fluctuations.

Systematic Investment Plan (SIP)
Pros:

Rupee Cost Averaging: By investing regularly, you buy more units when prices are low and fewer when prices are high. This averages out the cost of investment.

Reduced Risk: SIPs spread your investment over time. This reduces the impact of market volatility.

Discipline: SIPs instil a habit of regular saving and investing. It ensures consistent contribution towards your financial goals.

Cons:

Smaller Immediate Exposure: Your money enters the market gradually. This can be less beneficial during strong market upswings.

Monthly Commitment: Requires regular contributions, which need disciplined financial planning.

Recommendations
1. Combination of Both:

Initial Lump Sum: Invest a portion of your money as a one-time investment. This gives immediate exposure and growth potential.

Regular SIPs: Start a SIP with the remaining amount. This benefits from rupee cost averaging and reduces risk over time.

2. Portfolio Diversification:

Diversified Funds: Invest in a mix of large-cap, mid-cap, and small-cap funds. Add aggressive hybrid funds for balanced growth.

Avoid Index Funds: Actively managed funds can outperform index funds. They adapt to market changes, aiming for better returns.

Additional Strategies
1. Emergency Fund:

Safety Net: Keep an emergency fund to cover 6-12 months of expenses. This prevents dipping into your investments during emergencies.
2. Regular Review:

Periodic Assessment: Review your investments every six months. Adjust your portfolio based on performance and market conditions.
3. Tax Planning:

Tax-Saving Funds: Invest in tax-saving mutual funds. This helps reduce your tax liability and increase savings.
Disadvantages of Direct Funds
1. Lack of Guidance:

Professional Advice: Regular funds through a certified financial planner (CFP) offer expert guidance. They tailor investments to your goals.

Better Service: CFPs provide regular updates and reviews. This ensures your investments stay on track.

Final Insights
Opting for a combination of one-time investments and SIPs is a balanced approach. It maximises growth potential and reduces risk. Regularly review and adjust your portfolio to stay aligned with your financial goals. Consulting a Certified Financial Planner can help you achieve a well-rounded investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

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Money
Sir is it better to invest in stocks or investing through mutual fund sip
Ans: Assessing Direct Stock Investment
Potential for High Returns

Investing directly in stocks can offer high returns.
Stocks can outperform mutual funds over the long term.
Requires Deep Knowledge

Stock investment needs good market knowledge.
You must research and analyse individual companies.
Higher Risk

Stocks can be highly volatile.
There’s a risk of significant losses.
Time-Consuming

Monitoring stock investments requires time and effort.
You need to stay updated with market trends and news.
Benefits of Mutual Fund SIPs
Professional Management

Mutual funds are managed by professional fund managers.
They make informed decisions based on market analysis.
Diversification

Mutual funds invest in a diversified portfolio.
This reduces the risk compared to investing in individual stocks.
Convenience and Discipline

SIPs (Systematic Investment Plans) offer convenience.
They instill financial discipline by regular investments.
Lower Risk

Mutual funds spread risk across multiple stocks.
They are less volatile compared to individual stocks.
Evaluating Your Investment Style
Risk Tolerance

Assess your risk tolerance before deciding.
Stocks are high-risk, high-reward; mutual funds offer balanced risk.
Time and Knowledge

Consider the time you can dedicate to investment research.
Mutual funds require less time and knowledge.
Investment Goals

Define your financial goals and time horizon.
Mutual funds can align better with long-term goals.
Disadvantages of Direct Funds
Lack of Professional Guidance

Direct funds lack professional advice.
DIY approach might not suit everyone.
Time-Consuming

Requires constant monitoring and knowledge.
Might not be feasible for busy professionals.
Risk of Suboptimal Choices

Higher risk of choosing inappropriate funds.
Can lead to lower returns.
Benefits of Regular Funds
Professional Advice

Investing through an MFD with CFP credentials offers professional guidance.
Better fund selection and portfolio management.
Time-Saving

CFP handles the research and monitoring.
Saves you time and effort.
Optimized Returns

Expert advice leads to better investment choices.
Potentially higher returns compared to direct funds.
Final Insights
Investing in stocks can offer high returns but comes with high risk and requires time and knowledge. Mutual fund SIPs, on the other hand, offer professional management, diversification, and convenience, making them a safer and more suitable option for most investors.

Consider your risk tolerance, time, and investment goals before deciding. Consulting a Certified Financial Planner can help tailor a strategy that suits your needs and maximizes returns.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |9752 Answers  |Ask -

Career Counsellor - Answered on Jul 31, 2025

Career
Sir my rank is 16894 OC category no EWS .I got kmec CSM in second phase in tg eapcet. I am going for 3rd phase. So could you please guide me whether vidya jyoti institute of technology cse is better or kmec. In 3rd phase can I get Iare , cmrk , cvr , mgit , vjit , snist , anurag only cse and specializations . Are there any chances to get any of these colleges in 3rd phase ? Please guide me sir.
Ans: Dhaksh, With an OC category rank of 16,894 in TG EAPCET, you have secured Computer Science and Business Systems (CSM) at Keshav Memorial Engineering College (KMEC) in phase 2, and are now considering options for phase 3, including CSE at Vidya Jyothi Institute of Technology (VJIT), as well as aspirational seats at IARE, CMRK, CVR, MGIT, VJIT, SNIST, and Anurag (all CSE and related specializations). Based on the official 2024 TG EAPCET closing ranks and highly regarded educational portals, your current rank is well outside the typical closing ranks for OC candidates in CSE at top-tier colleges: CVR (3,200–4,200), MGIT (3,412–3,417), IARE (well under 1,000), SNIST and Anurag (typically under 8,000 for CSE), and CMRK (usually closes by 17,000). VJIT’s CSE (core) closed at 22,455 and AI-ML/Data Science specializations closed between 20,423–21,363, making VJIT’s CSE the only program among your choices where your rank sits comfortably within range for both core and allied branches in phase 3. KMEC’s CSM course typically has closing ranks around 17,263–18,648 for OC, which fits your present allocation and gives the campus a competitive, yet supportive environment, with strong faculty, modern infrastructure, transparent placement processes, and good industry connections. Both KMEC and VJIT have consistently placed 70–90% of eligible students in reputable IT and core companies, with experienced faculty and ample campus facilities, though VJIT is consistently rated higher for core CSE in terms of peer crowd, coding culture, alumni base, research opportunities, and recruiter interest.

In summary, at a 16,894 OC rank, you are unlikely to secure CSE at IARE, CMRK, CVR, MGIT, SNIST, or Anurag (across specializations) as their closing ranks are much lower for OC. VJIT CSE remains open in the upcoming round and is a stronger academic and placement choice than KMEC CSM. Both KMEC and VJIT offer key advantages—NAAC accreditation, modern labs, industry-engaged faculty, active coding culture, and well-structured placement cells—but VJIT provides a more prominent academic environment and greater success for core CSE aspirations.

RECOMMENDATION: Among realistic options, VJIT CSE is the preferred choice as it aligns with your rank, offers better placements, stronger academic pedigree, and deeper industry linkages. You may retain KMEC CSM as a secondary option, but prioritize VJIT CSE (and allied specializations) for a more competitive peer group, robust campus experience, and long-term professional growth. All the BEST for a Prosperous Future!

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Hii mam i have done my registered marriage in April 2024 without knowing of my parents and now i m living in my mother's House without telling that i m married ? Now how can i convince my parents. I have told my parents about him but don't even want to talk to him or his parents.. how can i convince my parents?
Ans: Dear Anonymous,
I understand that you are in a sensitive situation. Patience and empathy is extremely important if you want to convince your parents. Understand their side; what are they objecting and why. Once you get that, it will be easier to debunk any misunderstandings they have about your relationship. Have calm one-on-one conversation with each parent instead of talking to both of them at once. Your first task is to make them listen, not immediately approve. Acknowledge any mistake they bring up; it is indeed unfair to not include your parents in your marriage decision, at least, in India. Though I am sure you had your reasons and I am not judging at all. But you need to acknowledge that it was not right of you to do that. This makes you come off more responsible, mature and sincere. Ask them gently what they do not like about your partner and once you understand it, show them his positive side.

Do not threaten, or give ultimatum. Don’t use dialogues like my life my decision if you want them to ever approve of this relationship. Be patient and give them time to come to terms with it.

Lastly, if you, even once feel that some of their objections are valid and you never saw it that way, please take things slow. We do miss a lot when we are in love. I am sure that’s not the case with you, but just in case, please do not hesitate to rethink.

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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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