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Ramalingam

Ramalingam Kalirajan  |10314 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2025

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 - Jul 07, 2025Hindi
Money

what shd be starting investment is SIP

Ans: Starting early—even with small amounts—makes a big difference. SIP creates wealth over time with peace and discipline. Let us understand how to decide your ideal starting point for SIP investment.

? Know your monthly saving potential first
– Your SIP amount depends on your saving capacity
– Calculate income minus expenses to know the free cash
– Include EMIs, groceries, school fees, rent, and utilities
– Avoid starting SIP beyond what you can sustain for long
– Even Rs. 500 or Rs. 1,000 monthly is a good start if done early

? Begin with an amount you are confident to continue
– SIP works only if you stay consistent for many years
– Don’t start too high and stop midway under pressure
– Choose an amount that you won’t withdraw or miss
– SIP should be sustainable even during unexpected situations
– Starting with Rs. 3,000 to Rs. 5,000 monthly is healthy for most beginners

? Match SIP to your goals, not just income
– Each financial goal should have a dedicated SIP
– For example: one SIP for child education, one for retirement
– Short-term goals need different funds than long-term ones
– SIP should match the goal time frame, risk level, and purpose
– A SIP for a 2-year goal should not go into equity funds

? Do not depend on direct funds
– Direct funds do not give access to certified guidance
– You may not get reviews, hand-holding, or goal mapping
– Most retail investors lack time or tools for proper fund tracking
– Regular plans via MFDs with CFP help avoid wrong fund choices
– Regular plan may have slightly higher cost, but gives full support
– A wrong fund may cost you more than the expense ratio

? Avoid index funds when starting
– Index funds simply copy the market, they don’t protect in downtrends
– No fund manager means no smart move during market crash
– Index funds give average returns, not above-average
– They suit only informed, experienced investors with high risk appetite
– Instead, actively managed funds aim for better risk-adjusted return
– Fund managers take advantage of market opportunities to reduce volatility

? Understand the fund type before deciding SIP amount
– Equity funds need long-term SIP (minimum 5 to 7 years)
– Debt or hybrid funds suit medium goals of 3 to 5 years
– SIP in ELSS helps save tax and create wealth if held long
– SIP for emergency fund can go into low-risk liquid funds
– Goal-specific allocation improves your wealth journey

? Align SIP with salary increment
– You can begin SIP with Rs. 2,000 or Rs. 5,000 now
– Increase it by 10%–20% each year as salary grows
– This top-up SIP helps grow your investments faster
– A Rs. 5,000 SIP with yearly increment becomes Rs. 10,000 soon
– Keep SIP amount growing with income, not flat for years

? Avoid stopping SIP during market fall
– SIPs work best during market corrections
– You buy more units at lower prices
– Over time, your average cost reduces
– Market low is the best time to continue SIP
– Pausing SIP during such times stops compounding benefit

? Review SIPs every 6 to 12 months
– Track if the funds are performing as expected
– Check if the SIP is still matching your goal time frame
– Switch only if fund consistently underperforms its category
– Don’t change SIPs too often—stay long to see results
– Rebalancing helps if asset mix drifts from original goal

? SIPs are not fixed deposit replacements
– SIPs are not meant for short-term guaranteed returns
– They are goal-based, time-based wealth builders
– They carry risk, but also reward over the long run
– Don’t stop SIP because FD rates look attractive
– FD is for safety, SIP is for wealth growth

? SIP helps build retirement wealth too
– SIP can be used for retirement corpus slowly over time
– Retirement goal requires high equity allocation in early years
– SIP in balanced or hybrid funds helps reduce stress near retirement
– Begin SIP early, even with Rs. 3,000/month, and let it run long

? Don’t mix SIP with insurance products
– ULIPs and endowment plans offer low returns and high cost
– SIP in mutual funds is cleaner, more flexible, and goal-based
– If you hold old LIC or ULIP plans, review their returns
– You can surrender underperforming plans and shift to SIP-based model
– This keeps insurance separate and investments efficient

? SIP is also for women, homemakers, and children
– Housewives can invest SIP from household savings
– Minor child SIP can build higher education or marriage corpus
– SIP in mother’s name ensures future financial independence
– Don’t wait for big lump sum—start small but stay regular

? Taxes in mutual fund SIPs
– SIP in equity funds held over 1 year gets LTCG benefit
– LTCG over Rs. 1.25 lakh gets taxed at 12.5%
– Short-term gains are taxed at 20%
– SIPs in debt or hybrid funds are taxed as per your income slab
– Taxes are applied only on redemption, not during SIP running

? Emergency fund SIP can also be created
– Build Rs. 1 lakh to Rs. 2 lakh slowly for emergencies
– SIP in ultra-short or low-duration debt fund can help
– This keeps your emergency fund liquid but better than savings account
– Avoid using equity SIP for short-term emergencies

? Use certified help to plan SIP
– SIP without goal or planning may not give satisfaction
– Use guidance from Certified Financial Planner, not just random advice
– A proper plan aligns SIP with goals, time, and your risk
– It avoids over-diversification or overlapping funds
– SIP should be efficient, not complicated

? Final insights
– You can start SIP even with Rs. 500 or Rs. 2,000
– What matters more is how long and how consistently you stay invested
– Start with low amount but top it up every year
– Choose actively managed funds, avoid direct and index options
– Align SIP with goals like retirement, education, marriage, emergency
– SIP is a habit, not a product—so be patient
– Don’t mix SIP and insurance—it reduces both power and return
– Stay invested, stay guided, and review with a CFP annually
– SIP is not about market timing, but wealth timing

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |10314 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

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I want to start the SIP with a monthly investment of 30 ~ 50K. Please advice
Ans: Starting a SIP with a monthly investment of 30,000 to 50,000 is a commendable decision towards your financial future. Here’s a general guideline to help you get started:

Assess Your Financial Goals: Before diving in, clarify your financial goals. Are you saving for retirement, a down payment on a home, or your child's education? Knowing your goals will guide your investment strategy.
Diversify Your Portfolio: Spread your investments across different asset classes like equity, debt, and gold to reduce risk. Equity funds can offer higher returns over the long term, while debt funds provide stability.
Choose Mutual Funds Wisely: Opt for mutual funds with a track record of consistent performance and low expense ratios. Research fund managers, fund size, and historical returns before investing.
Start with a Mix: If you’re unsure where to begin, consider starting with a balanced mutual fund or a mix of large-cap, mid-cap, and small-cap funds. This can provide a balanced approach to growth while managing risk.
Review and Adjust: Regularly review your portfolio to ensure it aligns with your financial goals and risk tolerance. Adjust your SIP amounts and fund selections as needed.
Consult a Certified Financial Planner: Consider consulting with a Certified Financial Planner to develop a personalized investment plan tailored to your needs and goals.
Remember, investing is a long-term commitment. Stay disciplined, avoid emotional decisions based on market fluctuations, and focus on your long-term goals.

..Read more

Ramalingam

Ramalingam Kalirajan  |10314 Answers  |Ask -

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

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Hi sir, i want to start sip.. This will be my ist investment so what would your suggestion like on which categories should i invest or what should be my breakup.. I want to invest 5000 now then after few months 10k and around 2 year from now 22k
Ans: Starting Your SIP Journey: A Guide to Investing

Congratulations on taking the first step towards investing. Starting a Systematic Investment Plan (SIP) is a wise decision for building wealth over time. Let's break down your investment strategy in a simple and effective manner.

Understanding Your Investment Goals
Before diving into the specifics, it's crucial to understand your financial goals, risk tolerance, and investment horizon. Since you are starting with ?5,000 and planning to increase it to ?10,000 in a few months and ?22,000 in two years, you have a progressive approach.

Suggested Categories for SIP Investment
Large-Cap Mutual Funds
Large-cap funds invest in well-established companies with a stable track record. They provide moderate growth with lower risk compared to mid-cap and small-cap funds. Ideal for new investors, these funds offer stability and consistent returns.

Multi-Cap Mutual Funds
Multi-cap funds invest across companies of different market capitalizations. They offer a balanced approach, providing diversification and the potential for higher returns. This category helps in managing risk while seeking growth.

Balanced Advantage Funds
Balanced advantage funds dynamically adjust the allocation between equity and debt. They aim to provide growth while managing risk effectively. These funds are suitable for beginners as they offer a balanced exposure to both equity and debt.

Debt Mutual Funds
Debt funds invest in fixed-income securities like bonds and government securities. They are less volatile compared to equity funds and provide stable returns. Including debt funds can add a safety net to your portfolio.

Suggested Breakup for ?5,000 SIP
Large-Cap Fund: ?2,000
Multi-Cap Fund: ?1,500
Balanced Advantage Fund: ?1,500
This allocation provides a mix of stability, diversification, and growth.

Suggested Breakup for ?10,000 SIP
As you increase your SIP amount, you can enhance your portfolio diversification:

Large-Cap Fund: ?3,000
Multi-Cap Fund: ?2,500
Balanced Advantage Fund: ?2,500
Debt Fund: ?2,000
Including a debt fund at this stage adds an element of safety and reduces overall portfolio risk.

Suggested Breakup for ?22,000 SIP
When you reach ?22,000 per month, you can further diversify and optimize your portfolio:

Large-Cap Fund: ?6,000
Multi-Cap Fund: ?5,500
Balanced Advantage Fund: ?5,500
Debt Fund: ?3,000
Mid-Cap Fund: ?2,000
Adding a mid-cap fund provides exposure to companies with higher growth potential, albeit with slightly higher risk.

Key Points to Remember
Start Small and Scale Up
Begin with the ?5,000 SIP and gradually increase it. This helps you get comfortable with investing and understand market dynamics.

Regular Review and Rebalancing
Monitor your investments regularly. Rebalance your portfolio at least once a year to maintain the desired asset allocation.

Consult a Certified Financial Planner (CFP)
Seeking advice from a CFP can provide personalized guidance. They can help tailor your investment strategy based on your goals and risk tolerance.

Stay Disciplined and Patient
Investing is a long-term journey. Stay disciplined, avoid emotional decisions, and remain patient. Market fluctuations are normal, and long-term investments usually yield positive results.

Conclusion
Starting your SIP journey with a structured approach will set a strong foundation for your financial future. Diversify your investments across different categories, review regularly, and seek professional advice when needed. Your progressive investment strategy, beginning with ?5,000 and scaling up to ?22,000, will help you build a robust portfolio over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10314 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

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Money
Hi sir, i want to start sip.. This will be my ist investment so what would your suggestion like on which categories should i invest or what should be my breakup.. I want to invest 5000 now then after few months 10k and around 2 year from now 22k...my target amount is 25 lacs within 5 yrs
Ans: Starting SIPs for your first investment is a great step towards building wealth over time. Since you have a target amount of 25 lakhs within a 5-year timeframe, it's essential to choose investment options that offer the potential for growth while managing risk. Here's a suggested approach for your SIP investment:
1. Diversified Equity Funds: Since your investment horizon is relatively short (5 years), it's crucial to focus on funds that offer growth potential while minimizing risk. Consider allocating a significant portion of your SIP towards diversified equity funds, which invest in a mix of large-cap, mid-cap, and small-cap stocks. These funds offer diversification across market segments and can potentially deliver higher returns over the long term. Aim to allocate around 60-70% of your SIP towards diversified equity funds.
2. Large Cap Funds: Large-cap funds invest in stocks of large, well-established companies with stable earnings and strong market presence. These funds offer stability and are relatively less volatile compared to mid-cap and small-cap funds. Consider allocating around 20-30% of your SIP towards large-cap funds to provide stability to your portfolio.
3. Mid Cap and Small Cap Funds (Optional): Mid-cap and small-cap funds have the potential to deliver higher returns but come with higher volatility. Given your relatively short investment horizon, consider allocating a smaller portion of your SIP (around 10-20%) towards mid-cap and small-cap funds, if you're comfortable with the higher risk associated with these segments.
4. Systematic Investment Plan (SIP) vs. Lump Sum: Since you're just starting, opting for SIPs can be a prudent approach, as they allow you to invest regularly over time and benefit from rupee cost averaging. As your investment horizon is relatively short, avoid making lump sum investments, as they may expose you to timing risk, especially considering market fluctuations.
5. Regular Review and Adjustment: Regularly review your investment portfolio and make adjustments as needed to ensure it remains aligned with your financial goals and risk tolerance. As your investment horizon progresses and your financial situation changes, consider consulting with a Certified Financial Planner (CFP) or financial advisor to reassess your investment strategy and make any necessary adjustments.
By following this approach and staying committed to your investment plan, you'll be well-positioned to achieve your target amount of 25 lakhs within a 5-year timeframe. Remember to stay disciplined, focus on the long term, and avoid making impulsive decisions based on short-term market fluctuations.

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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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