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Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 25, 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 24, 2024Hindi
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Which is the best platform to invest as sip in mutual fund? What are the charges and fees

Ans: Investing in mutual funds through SIPs (Systematic Investment Plans) is a prudent way to build wealth over time. Selecting the right platform to invest is crucial for your investment journey. Let's explore the best options available and the charges and fees associated with them.

Importance of Investing Through a Certified Financial Planner (CFP)
Before delving into the platforms, it's essential to understand the benefits of investing through a Certified Financial Planner (CFP). A CFP offers tailored advice, ensuring your investments align with your financial goals. They provide comprehensive financial planning, helping you select the right funds and strategies.

Benefits of Investing Through a Mutual Fund Distributor (MFD) with a CFP Credential
Personalized Advice: MFDs with CFP credentials offer personalized investment advice based on your financial situation and goals.

Holistic Financial Planning: They provide holistic financial planning, covering all aspects of your financial life, not just mutual fund investments.

Regular Portfolio Reviews: MFDs conduct regular reviews of your portfolio, ensuring it remains aligned with your objectives and market conditions.

Access to Multiple Funds: They provide access to a wide range of mutual funds from different fund houses, offering you a diversified investment portfolio.

Convenience: Investing through an MFD is convenient, as they handle the paperwork and administrative tasks, saving you time and effort.

Charges and Fees Associated with Investing Through an MFD
When investing through an MFD, there are certain charges and fees to be aware of:

Expense Ratio: This is the annual fee charged by the mutual fund for managing your investments. It is deducted from the fund's returns.

Entry and Exit Loads: Some funds may charge a fee when you invest (entry load) or redeem (exit load) your units. Most equity mutual funds no longer charge entry loads.

Advisory Fees: Some MFDs may charge an advisory fee for their services. This can be a flat fee or a percentage of the invested amount.

Transaction Charges: For investments above a certain amount, some MFDs may levy transaction charges.

Comparing Popular Platforms
Let's compare some popular platforms for investing in SIPs through MFDs with CFP credentials:

Platform A: Traditional Banks
Advantages: Trusted institutions, in-person advice, comprehensive financial products.

Disadvantages: Higher fees, potential bias towards in-house products.

Charges: Typically higher due to in-person advisory services.

Platform B: Independent Financial Advisors (IFAs)
Advantages: Personalized service, unbiased fund recommendations.

Disadvantages: Service quality varies, availability may be limited to specific locations.

Charges: Moderate fees, often more competitive than banks.

Platform C: Online Investment Platforms
Advantages: Convenience, lower costs, easy access to a wide range of funds.

Disadvantages: Limited personal interaction, reliance on technology.

Charges: Lower fees, with some platforms offering zero commission on direct plans.

Why Investing Through a CFP is Beneficial
Investing through a CFP offers the best of both worlds: personalized advice and comprehensive financial planning. They help you navigate the complexities of mutual fund investments and ensure your portfolio is well-structured to meet your financial goals.

Selecting the Right Funds
When investing through an MFD with a CFP credential, you gain access to a wide range of mutual funds, including:

Equity Funds: For long-term growth, suitable for aggressive investors.

Debt Funds: For stability and regular income, suitable for conservative investors.

Balanced Funds: For a mix of growth and stability, suitable for moderate investors.

Tax-saving Funds (ELSS): For tax benefits under Section 80C, suitable for tax-efficient growth.

Disadvantages of Index Funds and Benefits of Actively Managed Funds
Index funds have gained popularity, but they come with disadvantages:

Limited Flexibility: Index funds follow a passive strategy, limiting flexibility in changing market conditions.

Average Returns: They aim to replicate the index returns, which can be average compared to actively managed funds.

Missed Opportunities: Actively managed funds can seize market opportunities and generate higher returns.

Conclusion
Investing in SIPs through a Certified Financial Planner (CFP) provides personalized advice, holistic planning, and access to a wide range of mutual funds. The charges and fees associated with this approach are justified by the value and peace of mind they offer. Avoiding index funds and opting for actively managed funds through a trusted MFD with a CFP credential ensures you are well-positioned to achieve your financial goals.

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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Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

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

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hi Sir, I want to investment in mutual funds through SIP or direct. pls advise
Ans: Your interest in mutual funds for systematic investment plans (SIPs) is a smart move towards financial stability. Let's explore the benefits of regular funds and the drawbacks of direct funds to help you make an informed decision.

Firstly, I commend you for taking proactive steps towards managing your finances. Your willingness to seek advice demonstrates a commitment to long-term financial success.

Benefits of Regular Funds
Professional Guidance
Regular funds offer the advantage of professional guidance from a Certified Financial Planner (CFP). This expertise can be invaluable in selecting the right funds tailored to your financial goals and risk tolerance.

Regular Monitoring
Investing through regular funds ensures your portfolio is regularly monitored and rebalanced by professionals. This helps in adapting to market changes and optimizing returns.

Simplified Process
With regular funds, the investment process is simplified. A CFP helps manage documentation, track performance, and make necessary adjustments, saving you time and effort.

Tailored Advice
A CFP provides tailored advice based on your financial situation and goals. This personalized approach helps in selecting the best funds and strategies for your specific needs.

Drawbacks of Direct Funds
Lack of Professional Guidance
Investing in direct funds means managing your investments without professional help. This can be challenging, especially if you lack financial expertise or time to monitor your investments closely.

Increased Risk
Without professional guidance, the risk of making uninformed decisions increases. This can lead to poor fund selection, inadequate diversification, and suboptimal returns.

Complexity
Managing direct funds requires a good understanding of market trends, fund performance, and economic indicators. This complexity can be overwhelming and may result in missed opportunities or mistakes.

Time-Consuming
Monitoring and rebalancing your portfolio in direct funds can be time-consuming. Without professional support, you must stay updated on market developments and make timely decisions.

Evaluating Your Options
Regular SIPs
By opting for regular SIPs, you benefit from professional management, regular monitoring, and personalized advice. This helps in building a diversified portfolio aligned with your financial goals.

Active Management
Actively managed funds, typically offered through regular investments, aim to outperform the market. A professional fund manager makes strategic decisions to maximize returns, offering an advantage over passive index funds.

Cost Consideration
While regular funds may have slightly higher fees than direct funds, the benefits of professional management, expert advice, and peace of mind often outweigh the costs.

Conclusion
Investing through regular mutual funds offers numerous advantages, including professional guidance, regular monitoring, and tailored advice. The drawbacks of direct funds, such as lack of guidance and increased complexity, highlight the value of regular investments managed by a Certified Financial Planner.

I encourage you to consider these benefits and make an informed decision that aligns with your financial goals. Your proactive approach and willingness to seek advice are commendable steps towards achieving financial success.

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 Oct 03, 2024

Asked by Anonymous - Sep 30, 2024Hindi
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Which is the best mutual fund for SIP?
Ans: Choosing the best mutual fund for SIP depends on your goals, risk tolerance, and investment horizon. Here’s a detailed guide to help you make an informed decision.

Focus on Your Investment Horizon
The length of your investment horizon plays a crucial role in choosing the right fund. Longer durations, like 7-10 years or more, favor equity-based mutual funds. Shorter durations may require a mix of debt and hybrid funds for stability.

Long-Term Investors (7 years or more): You can take higher risks for higher returns. Equity mutual funds, especially small-cap and mid-cap funds, may suit your needs.

Medium-Term Investors (3-7 years): Balanced or hybrid funds, which invest in a mix of equity and debt, are better for managing risk while providing decent returns.

Short-Term Investors (less than 3 years): For conservative investors with a short-term horizon, debt funds can offer stable returns with lower risk.

Types of Funds for SIP
Based on your financial goals and risk appetite, here’s a breakdown of various types of funds:

Large-Cap Equity Funds: These invest in the top 100 companies and are less risky. They provide stable, moderate returns over the long term. Ideal for investors seeking steady growth.

Mid-Cap and Small-Cap Funds: These funds invest in smaller companies with higher growth potential. The risk is higher, but the returns can be superior. Suitable for investors with higher risk tolerance and longer investment horizons.

Multi-Cap and Flexi-Cap Funds: These funds diversify investments across companies of all sizes. They offer a balanced approach with less risk than small-cap funds but more growth potential than large-cap funds.

Balanced or Hybrid Funds: These funds combine equity and debt investments. They are good for investors who want moderate growth with a safety net. Hybrid funds offer more stability during market downturns.

Avoiding Index Funds
Index funds may not be the best option for Indian investors. They simply replicate a market index and may miss opportunities to outperform the market. Actively managed funds, on the other hand, allow fund managers to select stocks based on market conditions, often resulting in better returns.

Regular vs. Direct Funds
Regular funds, through a Certified Financial Planner (CFP), provide the benefit of expert advice and ongoing portfolio reviews. Direct funds may seem cheaper because they don’t involve commissions, but without proper guidance, you could miss out on better-performing funds or make costly mistakes.

Taxation on Mutual Funds
It’s important to keep taxation in mind when choosing mutual funds for SIP:

Equity Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Debt Funds: Both LTCG and STCG in debt funds are taxed as per your income tax slab. Hence, they may not be as tax-efficient as equity funds for long-term investors.

Risk Management and Diversification
Diversification is key when investing in mutual funds. Don’t put all your money in one type of fund. A mix of large-cap, mid-cap, and hybrid funds can help balance your risk and reward.

Regular Review of Your Portfolio
It’s important to review your SIP investments at least once a year. Assess the performance of the funds and adjust based on changing market conditions or your personal financial goals. A Certified Financial Planner can guide you through this process and help optimize your portfolio.

Final Insights
To sum up, choosing the best mutual fund for SIP requires careful consideration of your investment goals, risk appetite, and time horizon. Focus on equity funds for long-term growth, avoid index funds for better returns, and ensure your portfolio is well-diversified.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..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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Asked by Anonymous - Jul 31, 2025Hindi
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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.

Best Wishes.

...Read more

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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