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Vivek

Vivek Lala  |251 Answers  |Ask -

Tax, MF Expert - Answered on May 19, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
CHANDRASHEKHAR Question by CHANDRASHEKHAR on May 14, 2024Hindi
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Which Mutual Fund can give me good monthly income to meet home needs

Ans: Hello, depending on your age , corpus , active income and duration of the investment the above question can be answered
If you have active then you don't need any cashflows from mutual funds, but if you don't have any active income then the thumb rule for SWP can be 4-6% of the corpus. If you maintain this with a balanced portfolio, your portfolio will give you good results over a period of 10-15-20yrs

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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  |4605 Answers  |Ask -

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

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Dear Sir, I am 49 years old and wish to start investing in a mutual fund that can give me a monthly income of at least 30K after I retire which will be in 11 years. I am looking for a monthly income kind of fund. Can you please advise me suitably?
Ans: You have taken a proactive step by planning for your retirement income. This foresight is commendable and will ensure a secure future.

Understanding Your Goal
Monthly Income Target:

You aim to have a monthly income of Rs. 30,000 after retirement in 11 years.

Corpus Calculation:

To generate Rs. 30,000 monthly, we need to calculate the required retirement corpus. Typically, a 4-5% annual withdrawal rate is considered safe.

Investment Strategy
Balanced Approach:

A balanced approach between equity and debt is essential. This strategy provides growth and stability.

Equity Investments:

Equities offer higher returns but come with higher risk. They are essential for long-term growth.

Debt Investments:

Debt instruments provide stability and regular income. They are crucial for preserving capital.

Mutual Fund Recommendations
Equity Mutual Funds:

Diversified Equity Funds: These funds spread investments across sectors, reducing risk.
Large-Cap Funds: Invest in well-established companies for stable returns.
Debt Mutual Funds:

Short-Term Debt Funds: Provide stability and liquidity.
Dynamic Bond Funds: Adjust based on interest rate movements.
Balanced Funds:

Hybrid Funds: Invest in both equity and debt for balanced growth and stability.
Systematic Investment Plan (SIP)
Starting SIPs:

Start SIPs in mutual funds for disciplined investing. SIPs help in averaging out the purchase cost.

Monthly Contribution:

Determine a monthly contribution to reach your retirement goal. Regular investments will compound over time.

Diversifying Investments
Diversification:

Diversify your investments to spread risk. Invest across different sectors and asset classes.

Mutual Fund Portfolio:

Build a diversified mutual fund portfolio. Include equity, debt, and balanced funds.

Monitoring and Rebalancing
Regular Review:

Review your portfolio quarterly. Ensure it aligns with your goals and market conditions.

Annual Rebalancing:

Rebalance your portfolio annually. Maintain your desired asset allocation by adjusting equity and debt investments.

Risk Management
Risk Tolerance:

Assess your risk tolerance. Invest accordingly to balance growth and stability.

Emergency Fund:

Maintain an emergency fund for unexpected expenses. It should cover 6-12 months of expenses.

Tax Efficiency
Tax-Saving Investments:

Utilize tax-saving options under Section 80C. Invest in ELSS funds, PPF, and other tax-efficient instruments.

Capital Gains Tax:

Plan for long-term capital gains tax. Hold investments for over a year to benefit from lower tax rates.

Preparing for Retirement
Estimate Expenses:

Estimate your retirement expenses. Include inflation and unexpected costs to ensure you have enough funds.

Create a Withdrawal Strategy:

Plan a withdrawal strategy for your retirement corpus. Withdraw 4-5% annually to sustain your income and corpus.

Building a Corpus for Retirement
Calculating the Required Corpus:

Calculate the corpus needed to generate Rs. 30,000 monthly. Consider factors like inflation and life expectancy.

Investment Horizon:

With 11 years to retirement, focus on growth-oriented investments. Shift towards more stable investments as retirement nears.

Sample Portfolio Allocation
Equity Mutual Funds:

Diversified Equity Fund: 30%
Large-Cap Fund: 20%
Balanced Fund: 20%
Debt Instruments:

Debt Mutual Funds: 20%
Fixed Deposits and Bonds: 10%
Seeking Professional Advice
Certified Financial Planner (CFP):

Consult a CFP for personalized advice. They can provide insights based on your specific needs and goals.

Conclusion
By planning and diversifying your investments, you can achieve a stable retirement income. Regularly review and adjust your portfolio to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Hi sir I am a housewife ans have small amount of savings Please suggest best mutual fund
Ans: It's great to see you taking an interest in mutual funds as a means to grow your savings. Let's explore some options:

• Consider starting with a balanced fund, which offers a mix of equity and debt investments.
• These funds provide a balance between growth potential and stability, making them suitable for conservative investors like yourself.

• Look for mutual funds with a track record of consistent performance and a seasoned fund manager.
• Research different funds and assess factors like expense ratios, investment philosophy, and historical returns.

• Opt for funds that align with your investment objectives and risk tolerance.
• If you have a longer investment horizon and are willing to take on more risk for potentially higher returns, you may consider equity funds.

• Conversely, if you prefer lower risk and more stability, debt funds may be a better fit for you.
• They invest in fixed-income securities like bonds and offer regular interest income.

• Keep in mind that past performance is not indicative of future results, so focus on the fund's investment strategy and manager expertise.
• Additionally, consider consulting with a Certified Financial Planner to help you select the best mutual fund based on your financial goals and circumstances.

• Remember to diversify your investments across different mutual funds to spread risk and maximize returns.
• Regularly review your investment portfolio and make adjustments as needed to stay on track towards your financial goals.

By choosing mutual funds that suit your risk profile and investment objectives, you can set yourself on the path to achieving your financial aspirations. Keep learning and stay committed to your investment journey. You're taking a positive step towards securing your financial future!

..Read more

Ramalingam

Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

Asked by Anonymous - May 06, 2024Hindi
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I want to invest in mutual funds, and buy a house in 10 years. My monthly salary is 1 lakh per month, expenses are 40K per month. Which mutual funds should I consider?
Ans: Investing in mutual funds to achieve your goal of buying a house in 10 years is a prudent decision. Considering your financial situation and objectives, let's outline a suitable portfolio strategy.

Goal-based Investing
Your goal of purchasing a house in 10 years necessitates a focused investment approach. We'll aim for a balanced portfolio that combines growth-oriented and stability-focused funds to generate wealth steadily over the long term.

Asset Allocation Strategy
Given your time horizon of 10 years, a predominantly equity-oriented portfolio is advisable to harness the potential of higher returns. We'll allocate a portion of your investable surplus to equity funds while maintaining a conservative allocation to debt funds for stability.

Mutual Fund Selection
Large-cap Equity Funds: These funds invest in well-established companies with a track record of stable performance. They provide stability to the portfolio while offering growth potential.

Multi-cap or Flexi-cap Funds: These funds have the flexibility to invest across market capitalizations, allowing them to capitalize on opportunities across the market spectrum. They offer a balanced approach to growth and risk.

Aggressive Hybrid Funds: Combining equity and debt components, these funds provide a balanced risk-return profile, making them suitable for long-term wealth accumulation goals like yours.

Debt Funds: Including short to medium duration debt funds can provide stability to the portfolio and mitigate the volatility associated with equity investments.

Systematic Investment Plan (SIP)
Given your monthly surplus, setting up SIPs in the selected funds will enable disciplined investing while leveraging the power of rupee cost averaging.

Professional Guidance
As a Certified Financial Planner, I recommend periodically reviewing your portfolio's performance and rebalancing it as needed to stay aligned with your financial goals.

Conclusion
Constructing a diversified mutual fund portfolio tailored to your goal of buying a house in 10 years requires a balanced approach that combines equity and debt instruments. With disciplined investing and professional guidance, you can steadily build wealth and achieve your aspiration of homeownership.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Maxim

Maxim Emmanuel  |288 Answers  |Ask -

Soft Skills Trainer - Answered on Jul 12, 2024

Asked by Anonymous - Apr 23, 2024Hindi
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Hello sir my name is Santu Chakraborty.I am 34 year old now unmarried. My qualification is Bsc botany honours with 2nd class +diploma in mechanical engineering with distinction +btech in mechanical engineering from government engineering college west Bengal with 7.5 dgpa.I have 6 years of teaching experience in private diploma engineering college and now I working as a vocational teacher in automobile engineering department in gov high school.In my early phase of life I am going through lots of Misguide,seveare Anxiety issue. Nobody can help me on that phase.I recover mostly by my own after various dillema.I want to work in mechanical r and d company, Mechanical design basis company and also upgrade my teaching carrier. How can I start my journey at this age ?what is the risk factor also? Please tell me. I am very enthusiastic dedicated person. I have no guide in my home. My father is vegetable seller.
Ans: Hi Santu Chakraborty,

This is a really exhaustive query.

The journey thru' your acquisition of qualifications has been vast!

In the course of your life you are now suffering from SNIOP (SUSCEPTIBLE NEGATIVE INFLUENCE OTHER PEOPLE) this happens when you let others control your life.

I have this poem.. Especially for one's like you!

The Guy in the Glass

When you get what you want in your struggle for pelf,
And the world makes you King for a day,
Then go to the mirror and look at yourself,
And see what that guy has to say.
For it isn't your Father, or Mother, or Wife,
Who judgement upon you must pass.
The feller whose verdict counts most in your life
Is the guy staring back from the glass.
He's the feller to please, never mind all the rest,
For he's with you clear up to the end,
And you've passed your most dangerous, difficult test
If the guy in the glass is your friend.
You may be like Jack Horner and "chisel" a plum,
And think you're a wonderful guy,
But the man in the glass says you're only a bum
If you can't look him straight in the eye.
You can fool the whole world down the pathway of years,
And get pats on the back as you pass,
But your final reward will be heartaches and tears
If you've cheated the guy in the glass.

Dale Wimbrow (c) 1934

Get the enthusiasm going, don't get embroiled in what life has been before!

Take a stranglehold of your life and make it BIG!

The opportunities are.. Miracles waiting to happen, what are you waiting for.. You are the catalyst!?
Maxim Emmanuel.

Pick up yourself don't be a victim of self pity.

If you do need further professional advice happy to assist
https://m.me/maxim.emmanuel.2024

...Read more

Nayagam P

Nayagam P P  |1830 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2024

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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