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Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Feb 03, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Nitiksha Question by Nitiksha on Feb 03, 2023Hindi
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What happens when the market falls midway while you have invested for a longer term?

Ans: Two points from me since this will happen very frequently when you’re invested for the long run:-

1. This is how the markets behave – if they were not to have volatility, they would give FD-type returns only. Note that I call it volatile behaviour and not risky behaviour.
2. Do not change your character just because markets are volatile – do not turn into a short term investor when markets go down. You should take out any investments only if either your goal for which that investment had been done has arrived or if that investment is no longer a good one to continue and you wish to shift to another better one.

I get excited when markets fall, rather than when they go up, because a fall gives me more opportunities to acquire good securities at low rates.
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  |8495 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 13, 2025Hindi
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For long-term investors, how does such a crash in benchmark indices like Sensex and Nifty50 affect portfolio strategies? Should they focus on rebalancing?
Ans: Market crashes can trigger anxiety, even for seasoned investors. However, they also present opportunities for long-term investors. It’s important to approach such situations calmly and strategically.

Key Effects on Portfolio Strategy
Temporary Loss of Value
A crash can lead to a drop in portfolio value. This is usually temporary for long-term investors. Patience is critical during such periods.

Increased Volatility
Expect heightened market volatility. Equity prices might swing drastically. This should not alter long-term goals.

Opportunity to Acquire Quality Assets
Market dips offer a chance to buy strong-performing assets at lower prices. Disciplined investing during these times can boost long-term returns.

Importance of Rebalancing
Rebalancing is crucial after market corrections. It ensures the portfolio remains aligned with your investment goals and risk tolerance.

Why Rebalancing is Needed
Asset allocation may shift during a market crash. Equities might decline more than other asset classes, altering your portfolio mix.

How to Approach Rebalancing
Review the allocation of your equity, debt, and other assets. Shift funds strategically to restore the original allocation.

Frequency of Rebalancing
Rebalancing should be done periodically, but avoid overdoing it during short-term market fluctuations.

Avoid Emotional Decisions
Stay Focused on Goals
Market crashes are temporary. Stick to your long-term goals instead of reacting impulsively.

Ignore Market Noise
Avoid frequent monitoring of portfolios during such times. Focus on the bigger picture.

Avoid Panic Selling
Exiting investments during a crash locks in losses and erodes potential recovery gains.

Strengthening Portfolio Post-Crash
Diversify Further
If diversification seems inadequate, add sectors or geographies to your portfolio. This spreads risk better.

Focus on Quality
Allocate more to fundamentally strong funds or stocks with a proven track record.

Increase Equity Exposure Strategically
If the market is undervalued, increasing equity investments could be beneficial.

Tax Implications to Consider
Keep taxation in mind while rebalancing:

Selling equities during the crash may trigger short-term or long-term capital gains taxes.

Review the tax-efficiency of debt funds if reallocating funds from equities to fixed-income instruments.

Benefits of Professional Guidance
Consider working with a Certified Financial Planner (CFP) to:

Assess your portfolio post-crash.
Implement tax-efficient rebalancing strategies.
Stay disciplined in adhering to your financial plan.
Final Insights
A crash in benchmark indices like Sensex or Nifty50 is part of the investment cycle. Long-term investors benefit most when they stay calm, focused, and disciplined. Rebalancing can restore balance in your portfolio and prepare it for recovery. Stick to your strategy and remain committed to your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |4773 Answers  |Ask -

Career Counsellor - Answered on May 22, 2025

Career
Sir my son wants to take ai and da but not good in maths. Please advise college in Karnataka specially in Bangalore along with management fees
Ans: For a student interested in AI and Data Science but not strong in maths, Bangalore offers several good colleges with supportive environments. Top choices like RV College of Engineering (RVCE) and PES University provide excellent programs, strong industry connections, and high placement packages but come with higher fees (around ?44-48 lakhs total+capitation/donation). CMR Institute of Technology (CMRIT) balances quality education and affordability (approx. ?16 lakhs), offering practical curriculum and good placements. More budget-friendly options like New Horizon College, Jain University, and Kristu Jayanti College provide decent AI & DS courses with manageable fees (?13-14 lakhs total) and supportive faculty. Since AI and Data Science require a solid math foundation, it’s important to select colleges known for academic support and mentoring to help strengthen maths skills. Bangalore’s vibrant IT ecosystem ensures ample internship and industry exposure, making these colleges suitable for students aiming to build careers in AI and Data Science despite challenges in mathematics. Please note, the MQ Seat Donation varies from one college to another. Please check the respective colleges' website. All the best for your son's admissions and a bright future!

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Nayagam P

Nayagam P P  |4773 Answers  |Ask -

Career Counsellor - Answered on May 22, 2025

Career
i got 73 percentile in jee and 90 percent in boards which is the best college for me for ai and ml
Ans: Bhumika, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced Results – A Step-by-Step Guide

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Have other options as back-ups, instead of relying only on JEE/JoSAA.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions and a bright future!

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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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