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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Apr 21, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
ASHWANI Question by ASHWANI on Apr 08, 2023Hindi
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which mutual fund should i start investing in?i can invest 40000 per months .i can take some risk but not much.

Ans: Hi Ashwani, please share the time horizon for which you want to invest for me to guide you better.
Asked on - Mar 25, 2024 | Not Answered yet
i can pay premium for 10 years and need the money after 10 years
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  |7101 Answers  |Ask -

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

Asked by Anonymous - May 08, 2024Hindi
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I want to invest 10000 per month in mutual funds. Which are better to invest in ?
Ans: Your commitment to investing Rs.10,000 per month is a commendable step towards achieving your financial goals. Let's explore some suitable mutual fund options to maximize your investments.

Understanding Your Investment Preferences
Before diving into specific funds, it's essential to understand your investment preferences, risk tolerance, and financial goals. As a Certified Financial Planner, I value aligning investments with your unique circumstances.

Investment Recommendations
Considering your monthly investment amount, let's explore diversified mutual funds across various categories:

Large Cap Funds: These funds primarily invest in established companies with stable performance records. They offer a balance of growth potential and stability, making them suitable for conservative investors.

Mid Cap Funds: Mid cap funds focus on medium-sized companies with potential for rapid growth. While they offer higher growth prospects, they come with increased volatility. They are suitable for investors with a higher risk appetite.

Small Cap Funds: Small cap funds invest in small-sized companies with significant growth potential. They offer the highest growth prospects but come with higher risk and volatility. They are suitable for investors with a long-term investment horizon and a high tolerance for risk.

Benefits of Regular Funds Investing through MFD with CFP Credential
Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential ensures personalized advice, ongoing support, and access to a diverse range of funds. It allows you to navigate the complexities of the market with professional guidance.

Disadvantages of Direct Funds
While direct funds offer lower expense ratios, they require active management and research, which may be daunting for investors without financial expertise. Opting for regular funds through a Certified Financial Planner ensures expert guidance and peace of mind.

Conclusion
Based on your investment preferences and risk tolerance, a diversified portfolio comprising large cap, mid cap, and small cap mutual funds through a Certified Financial Planner may offer the right balance of growth potential and stability for your monthly investment of Rs.10,000.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

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

Asked by Anonymous - May 29, 2024Hindi
Money
I want to invest 50000 in lump sum for 4 to 5 years with moderate risk . which mutual fund is best for this ?
Ans: Assessing Lump Sum Investment Options

Investing Rs 50,000 in a lump sum for a 4 to 5-year period with moderate risk requires careful consideration. You aim for reasonable returns without taking excessive risks. Let’s explore some suitable mutual fund options and strategies.

Understanding Your Investment Horizon

A 4 to 5-year investment horizon allows for a mix of equity and debt investments. This blend can provide growth while managing risk. It's essential to choose funds that align with your time frame and risk tolerance.

Balanced or Hybrid Funds

Balanced or hybrid funds invest in both equity and debt instruments. This mix aims to provide growth while reducing volatility. They are ideal for investors seeking moderate risk.

Benefits of Balanced or Hybrid Funds
Diversification: These funds invest in a mix of equity and debt, providing diversification.
Risk Management: The debt portion helps manage risk while the equity portion offers growth potential.
Stable Returns: Historically, balanced funds have provided stable returns over medium-term horizons.
Types of Balanced or Hybrid Funds

Aggressive Hybrid Funds: These funds invest around 65-80% in equities and the rest in debt. They offer higher growth potential with moderate risk.
Conservative Hybrid Funds: These funds invest around 10-25% in equities and the rest in debt. They are less risky and provide steady returns.
Debt Funds for Stability

Debt funds are another option for moderate risk investors. They invest in fixed-income securities like government bonds, corporate bonds, and money market instruments.

Benefits of Debt Funds
Low Volatility: Debt funds are less volatile than equity funds, providing more stable returns.
Capital Preservation: These funds focus on preserving capital while providing regular income.
Suitability for Medium-Term: Debt funds are suitable for a 4 to 5-year investment horizon.
Types of Debt Funds

Short-Term Debt Funds: These funds invest in securities with shorter maturity periods. They offer stability and lower risk.
Corporate Bond Funds: These funds invest in high-quality corporate bonds. They provide higher returns than government securities but come with slightly higher risk.
Dynamic Bond Funds: These funds actively manage the duration of their portfolio. They adjust based on interest rate movements to optimize returns.
Multi-Asset Allocation Funds

Multi-Asset Allocation Funds invest in multiple asset classes like equity, debt, and gold. This diversification helps manage risk while aiming for growth.

Benefits of Multi-Asset Allocation Funds
Diversification Across Asset Classes: These funds invest in various asset classes, reducing risk.
Balanced Approach: They balance the portfolio to optimize returns and manage volatility.
Flexibility: Fund managers can shift allocations based on market conditions.
Selecting the Right Fund

Choosing the right fund involves evaluating your risk tolerance, investment horizon, and financial goals. Here are some factors to consider:

Historical Performance: Look at the fund's performance over different market cycles. Consistent performance indicates good fund management.
Fund Manager’s Track Record: A fund manager’s experience and track record play a crucial role in the fund’s performance.
Expense Ratio: Lower expense ratios can lead to better net returns. Compare expense ratios among similar funds.
Credit Quality (for Debt Funds): Ensure the debt fund invests in high-quality securities to minimize credit risk.
Benefits of Mutual Funds Over Direct Stocks

Investing in mutual funds offers several advantages over direct stock investments, especially for those seeking moderate risk and stable returns.

Professional Management
Mutual funds are managed by professional fund managers with expertise in market analysis and stock selection. They have the resources to conduct thorough research, which individual investors might lack.

Diversification
Mutual funds provide diversification by investing in a wide range of securities. This reduces the impact of poor performance by any single stock, lowering overall portfolio risk.

Risk Management
Mutual funds, especially hybrid and debt funds, are designed to manage risk. They allocate assets strategically to balance growth and stability.

Convenience
Investing in mutual funds is convenient. It requires less time and effort compared to managing a portfolio of individual stocks. This is ideal for investors who may not have the time or expertise to monitor the market closely.

Systematic Investment Options
Mutual funds offer systematic investment options like SIPs and SWPs, promoting disciplined investing. These options help in regular investing and withdrawing funds systematically.

Reinvesting in Mutual Funds

Given the benefits of mutual funds, it might be wise to reinvest in them. Here’s how you can approach this:

Diversified Equity Funds: Consider investing in diversified equity funds for growth potential. These funds invest across various sectors and market capitalizations.
Balanced or Hybrid Funds: Balanced or hybrid funds offer a mix of equity and debt, providing growth potential with reduced risk.
Debt Funds for Stability: Allocate a portion of your investment to debt funds for capital preservation and steady income.
Multi-Asset Allocation Funds: These funds provide exposure to multiple asset classes, offering a balanced approach to risk and return.
Consulting a Certified Financial Planner

A Certified Financial Planner (CFP) can provide personalized advice based on your financial goals and risk tolerance. They can help you evaluate your current portfolio and suggest adjustments. A CFP can also assist in creating a diversified investment strategy tailored to your needs.

Regular Portfolio Review

Performance Monitoring: Regularly monitor the performance of your investments. Adjust your portfolio based on market conditions and personal goals.
Rebalancing: Periodically rebalance your portfolio to maintain the desired asset allocation. This helps in managing risk and optimizing returns.
Goal Alignment: Ensure your investments align with your financial goals. Adjust your strategy if there are changes in your goals or financial situation.
Conclusion

Investing Rs 50,000 in a lump sum for a 4 to 5-year period can be optimized by choosing the right mutual funds. Balanced or hybrid funds, debt funds, and multi-asset allocation funds are suitable options for moderate risk. These funds offer professional management, diversification, and convenience, making them ideal for achieving your financial goals. Consulting a Certified Financial Planner can provide personalized guidance to optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |3918 Answers  |Ask -

Career Counsellor - Answered on Nov 24, 2024

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Sir i am currently in class 11 th and i just want to prepare for jee mains and advanced 2026 exam so give me some roadmap to achieve and also guide me for computer science
Ans: Shreya, I trust that you have already enrolled in a coaching center, whether it be online or in person, and have finished your eleventh syllabus. (1) If you have not yet created your own short-notes for the 11th syllabus that has been completed, prepare it and continue to revise them every three days until 2026, even after you have commenced studying the 12th syllabus in December 2024. (2) Review the questions that you have incorrectly answered or skipped in mock tests conducted by your Coaching Center and/or practiced independently. (3) In order to increase your rank/percentile by targeting computer science at a reputable college/institute, prioritize mathematics (although all three subjects are equally important). (4) You should be thorough with NCERT books, particularly those pertaining to chemistry, in conjunction with the materials provided by your coaching institute. (5) Have 1-2 reference books for each subject. Not exceeding two. (6) Review the questions that were incorrectly answered or skipped in your mock and practice exams and retake the test. It is advisable to maintain a distinct note-book for these types of questions, which should include answers and elucidating notes, in order to review them repeatedly for all three subjects. (7) Download the SYLLABUS of JEE Main 2025 (available on Google by searching for "JEE Main Information Bulletin") and print it out, as there will be no significant changes to the syllabus in 2026. Maintain it on your study table and continue to update the 11th syllabus chapters and concepts that you have covered to date by marking them with a checkmark. This will boost your confidence if you continue to update the same till November 2025. (8) A slight difference in Syllabus might be visible when you acquire the 2026 JEE Main / JEE Advanced Syllabus. The same can be resolved within 15 days to one month in 2025-26. (9) Increase your productivity by studying for 45 minutes to 1 hour, taking a 10-minute break, and then continuing for 45 minutes. (10) Take a 2-3 minute break every 45 minutes while practicing questions, whether offline or online. This break should consist of closing your eyes and taking long breaths to enhance your concentration and mental capacity. (11) Additionally, it is recommended that you acquire the 20-40 PREVIOUS years question paper book of JEE (Main & Advanced) from Amazon. Arihant's, Disha's, or MTG's publications are recommended. Once you have finished reading a chapter, practice and complete it to determine the extent to which you have comprehended the concepts and to identify areas that require improvement. (12) By October 2025, ensure that you have reviewed significantly more than 90% of the previous years questions. Your confidence will be further bolstered by this. (13) After the mock test is completed at your coaching center, clarify all incorrectly answered or ignored questions and continue to revise and practice them, as these types of questions will significantly disrupt your performance in the actual JEE. (14) If you are a regular school student, inquire with your class teacher about the minimum attendance requirement as outlined in the Board's regulations (State, CBSE, ICSE, etc.). Utilize the remaining 15% by taking time off and preparing for your JEE, if only 85% attendance is required. (15) THE MOST IMPORTANT Value Added Suggestion: Rather than solely relying on JEE, please participate in 5-7 entrance exams/counseling process with a JEE score for getting admission into any one of the private engineering colleges to have a variety of options to select the most suitable one. All the BEST for Your Prosperous Future.

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T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

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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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