Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Should I Reduce My Equity Exposure?

Ramalingam Kalirajan |7466 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Oct 17, 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

Question by Yatin on Oct 17, 2024Hindi

Money

Sir, My wife's mutual fund portfolio is 1.2cr and not 1.2 lakhs as mentioned. Plus I am also a NPS account in my name as well as my wifes name. The present value of each account is 10.5 lakhs as of date and both of us are making monthly contribution of Rs5000/- in that account. Both of us are having individual PPF accounts also having Rs 17 lakhs respectively in both accounts. My mutual funds portfolio is 60 percent in equity and 40 percent into debt. I am having a monthly SIP of around 48000/- in my equity portfolio which is now basically into largecap and flexicap funds. My wife is 100 percent into equity with a monthly SIP of 30000/-.Shall I gradually reduce my equity exposure and from when. What should be my wifes strategy as she has still minimum 3 years of service till VRS Or 8 years for full retirement.

Ans: It's good to see that you and your wife are both on a solid financial track, with a diversified portfolio and consistent savings. Here's a brief assessment based on your situation:

Since you're nearing retirement, it's wise to gradually reduce equity exposure, especially as you get closer to your financial goals. You could consider shifting some of your equity to debt over the next few years, but the exact timing depends on your risk tolerance and retirement plans.

Your wife's 100% equity strategy can continue for the next few years while she remains in service, as she still has time on her side. However, as she gets closer to VRS or full retirement, she should start lowering her equity exposure too.

For a more detailed, personalized plan, I would recommend contacting a Certified Financial Planner who can tailor advice to your specific goals and risk profile.

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.

MoneyReply

You may like to see similar questions and answers below

Omkeshwar Singh | Answer |Ask -Follow

Head, Rank MF - Answered on Nov 04, 2022

Question by Inderpreet - Nov 04, 2022Hindi

Money

I am 38 and my wife is 37 years of age. We both combined earn close to Rs 1.50 lakh. I recently got to know about you. We have been investing in mutual funds since 2019, started with initial investment of Rs 7k which slowly and gradually now stand Es 21k monthly. I would like to know / understand your views on active SIPs. Below are my goals. Elder son’s study Rs 80 lakh to 1.20 cr year by 2034-35. Current age 7 Younger son’s study rs 1cr to 1.5 cr year by 2037-2038. Current age 3 Marriage of both sons Rs 1.20 cr b/w year 2039-2042 Retirement corpus of Rs 7.5 cr to 9 cr at the age 58. Combined SIP portfolio: Aditya birla sun life tax relief fund Rs 2000 Dec'18. Kotak flexi cap fund Rs 3000 Dec'18. Nippon india equity hybrid fund Rs 2000 Dec'18. Edelweiss balanced advantage Rs 2000 Aug'20 Invesco India Tax Plan Rs 1000 Aug'20 Axis blue-chip fund Rs 1000 Sep'20 Tata Flexi cap fund Rs 1000 Sep'20 Axis blue-chip fund Rs 2000 Apr'21 Edelweiss small cap fund Rs 1000 Apr'21 HSBC Focused Fund Rs 2000 May'22 Nippon India US equity opportunities Rs 1000 Sep'22 NJ balanced advantage fund Rs 3000 Dec'21 NIPPON India Flexi cap fund one time investment of Rs 20k Apart from above mentioned SIPs I have few more investments eq. NSC ( investment value Rs 2.4 lakh) low ROI since couple of years, NPS, LIC, PPF, PF, and have stated adding few stock since last 2 months Current standing is Rs 30k with Loss of Rs 2k. Liabilities: Have taken home loan of Rs 42 lakh last month and emi of Rs 38k will be paid jointly. (60% me and 40% brother). Request you to review and share your valuable feedback

Ans: Goal 1 - 1 crs in 13 years, monthly investment required is Rs. 22500 /-

Goal 2 – 1.25 crs in 16 years, monthly investment required is Rs. 17,500 /-

Goal 3 - 1.20 crs in 20 years, monthly investment required is Rs. 9,000/-

Goal 4 – 8.25 crs in 20 years, monthly investment required is Rs. 62,500

Ramalingam Kalirajan |7466 Answers |Ask -Follow

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

Asked by Anonymous - Apr 14, 2024Hindi

Money

Hi Experts, I have started investing 55k from my account and 1 lakh SIP from my wife account in mutual funds. Can you please review my portfolio and suggest if any changes required. My portfolio: 1. Axis growth opportunities fund - 8000 2. Canara robeco small cap - 8000 3. Quant active fund - 8000 4. PGIM India midcap opportunities - 5000 5. SBI Energy opportunities fund - 10000 6. Parag Parikh flexi cap - 8000 7. Tata digital India - 8000 My wife portfolio 1. Tata Digital India Fund Direct Growth - 20000 2. Motilal Oswal Nifty 200 Momentum 30 Index Fund Direct Growth - 12000 3. UTI Nifty Midcap 150 Quality 50 Index Fund Direct Growth - 12000 4. Canara Robeco Small Cap Fund Direct Growth - 8000 5. Parag Parikh Flexi Cap Fund Direct Growth - 8000 6. Motilal Oswal Large and Midcap Fund Direct Growth - 20000 7. HDFC Multi Cap Fund Direct Growth - 20000

Ans: Your portfolios have some overlap and could benefit from diversification. Here are general observations:

Concentration in Thematic/Sectoral Funds: Consider reducing weightage in thematic funds (energy, digital) as they can be volatile.
Multiple Mid-Cap & Flexi-Cap Funds: Having both might lead to overlap. Choose 1-2 well-diversified funds.
Consider Large-Cap Exposure: For a balanced approach, add a large-cap fund for stability.
Consult a financial advisor for a comprehensive review. They can assess your risk tolerance and goals to suggest a suitable asset allocation and potentially recommend specific funds.

Ramalingam Kalirajan |7466 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Kunal - Jul 20, 2024Hindi

Money

Hi I am 38 years old Central banker and my wife is 35 years old financial professional with combined salary of Rs 2.80 lakhs per month ( post deducting all monthly EMI’s).Our combined Investment per month is as under- -Mutual fund SIP- 1.75 lakhs ( includes retirement planning and educational planning for both the kids) -PPF 10k each for both of us -Sukanya Samruddhi Yojana -10k per month for girl child -VPF from wife’s ac- 12k -NPS from my salary 35k -Further, Life insurance Term plan of Rs 1.5 cr and 2.25 cr taken for me and my wife respectively. -1 lakh per year goes towards HDFC Samchay plan for period of 12 years and expected 2lakh per year for 14 th year to 26 years. $as on date portfolio of ours is as under:- -direct equity- around Rs. 57lakhs -Gold max 10lakh -Mutual fund corpus- 52 lakhs -2 residential flats and investment in 3 residential open plots. - 40 lakh corpus available for investing lumps in mutual fund for additional retirement planning. Funds made available by selling a Bunglow property. -monthly rental income is around 29 k. Kids aged 6 and 2 years old. Desire to retire at the age of 55 years and wife would like to retire at the age of 45 years. -Current monthly expenses is around 1 lakh per month and considering inflation 7%, post retirement per month requirement would be 4 lakhs. Please review and suggest improvement in investment strategy. Thank you very much

Ans: Current Financial Snapshot
Combined Salary: Rs. 2.80 lakhs per month (post deducting EMIs)
Mutual Fund SIPs: Rs. 1.75 lakhs per month
PPF Contributions: Rs. 10k each per month
Sukanya Samruddhi Yojana: Rs. 10k per month
VPF from Wife's Account: Rs. 12k per month
NPS Contribution: Rs. 35k per month
Life Insurance Term Plans: Rs. 1.5 cr for you and Rs. 2.25 cr for your wife
HDFC Samchay Plan: Rs. 1 lakh per year for 12 years, expected Rs. 2 lakhs per year from 14th to 26th year
Portfolio Overview
Direct Equity: Rs. 57 lakhs
Gold: Rs. 10 lakhs
Mutual Fund Corpus: Rs. 52 lakhs
Real Estate: 2 residential flats and investment in 3 residential open plots
Lump Sum for Retirement Planning: Rs. 40 lakhs
Monthly Rental Income: Rs. 29k
Financial Goals
Retirement: You at 55 years, wife at 45 years
Current Monthly Expenses: Rs. 1 lakh
Post-Retirement Monthly Requirement: Rs. 4 lakhs (considering 7% inflation)
Children's Education and Future Planning: Ongoing investments in PPF and Sukanya Samruddhi Yojana
Analysis and Recommendations
Investment Strategy Review
Diversification: Your portfolio is well-diversified with investments in equities, mutual funds, gold, and real estate. This diversification helps in risk management.

Mutual Fund Investments: Continue with SIPs for long-term growth. Focus on actively managed funds rather than index funds for better potential returns.

Direct Equity: Rs. 57 lakhs in direct equity is significant. Ensure it's diversified across sectors to minimize risk.

Gold: Rs. 10 lakhs in gold adds stability to your portfolio. Consider holding it as a long-term investment.

Lump Sum Investment
Additional Retirement Planning: Invest the Rs. 40 lakhs lump sum in a mix of debt and equity mutual funds. This helps in balancing risk and ensuring steady growth.
Debt Management
Home and Car Loans: Ensure EMIs are manageable within your current income. Focus on pre-paying high-interest loans if possible.
Children's Future Planning
Education Planning: Continue investments in Sukanya Samruddhi Yojana and PPF. These provide stable returns and tax benefits.
Retirement Planning
NPS and VPF: Your contributions to NPS and VPF are excellent for retirement planning. They offer tax benefits and steady returns.

Projected Expenses: With a post-retirement monthly requirement of Rs. 4 lakhs, ensure your corpus is sufficient to generate this income.

Life Insurance
Term Plans: Your term plans are adequate. Ensure they are reviewed periodically to match your needs.
Emergency Fund
Liquidity: Maintain an emergency fund of at least 6-12 months of expenses in liquid assets like savings accounts or liquid mutual funds.
Review and Rebalance
Periodic Review: Review your portfolio every 6-12 months. Rebalance if needed to align with your financial goals and risk tolerance.
Final Insights
Your current investment strategy is robust and well-diversified. By continuing your disciplined approach and making periodic adjustments, you can achieve your financial goals, including early retirement and securing your children's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Latest Questions

Sushil Sukhwani |566 Answers |Ask -Follow

Study Abroad Expert - Answered on Jan 08, 2025

Question by Varsha - Jan 04, 2025Hindi

Career

So currently I'm pursuing M.Tech in Robotics and AI from MS Ramaiah University. After this I would like to go to abroad and study further or get a job. So anyone suggest me regarding my thought on this?

Ans: Hello Varsha,

To begin with, thank you for contacting us. I am glad to see that you wish to further your career by going to study and work abroad. To answer your question, as an M.Tech student in Robotics and AI, you are well-positioned to either pursue further studies or seek employment abroad. If you’re considering continuing your education, many top universities in countries like the US, UK, Canada, and Germany offer specialized programs in AI, Robotics, and related fields at the PhD or post-Master’s level. To move forward, focus on building a strong academic profile, with research experience, relevant projects, and possibly even publications if possible.

You may also look into research scholarships or assistantships that can help with funding. After completing your advanced degree, you'll be well-equipped for a career in academia or industry abroad.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

T S Khurana |280 Answers |Ask -Follow

Tax Expert - Answered on Jan 08, 2025

Question by Sanjay - Jan 02, 2025Hindi

Money

I have short term capital gains from shares of 4.92 lakhs and interest from savings account of 0.12 lakhs in my HUF account for FY 2023-2024. What will be my tax liability.

Ans: Based on the data mentioned above, your Tax liability shall be less in Old Tax Regime (about Rs.25,000.00 without Interest etc.) as compared to new tax regime. You should file your ITR accordingly.
Most welcome for any further clarifications. Thanks.

Sushil Sukhwani |566 Answers |Ask -Follow

Study Abroad Expert - Answered on Jan 08, 2025

Question by Aaryan - Jan 05, 2025Hindi

Career

I've completed my graduation (B.Sc) from Delhi University, however I've come to realise that my interest lies someplace else, I hold a passion and wish to persue masters in Psychology and be a clinical psychologist down the line, what should be my next steps? Am I eligible for a master's program in Psychology even though my undergrad is in Science? I'm really troubled and cannot find a definitive answer, Willing to put in the work to crack any exam to get into a master's program, but cannot afford private colleges, Ideally, I would like to put in the work, clear and entrance examination, get into a master's programmes, maintain a great score throughout my masters and be eligible to move to some western nation to do my PhD or psy.D, whatever is applicable, It so happens that I do not see a way forward, any guidance is very much appreciated and needed. I would like to hear your thoughts on this, thank you.

Ans: Hello Aaryan,

First of all, thank you for reaching out to us. To answer your question, I can tell you that as an aspiring clinical psychologist, your B.Sc. background does not disqualify you from pursuing a Master's in Psychology, but you may need to meet specific prerequisites, such as having some foundational coursework in psychology.

Many Western universities, such as those in the US, UK, or Europe, offer postgraduate programs in Psychology with a clinical focus. You will likely need to prepare for exams like the GRE (for the US) or other relevant entrance tests depending on the country. Focus on excelling in the required exams, and explore scholarships or government-funded options to make your education more affordable. After completing your Master's, you'll be well-positioned to pursue a PhD or Psy.D. in clinical psychology if you wish to continue your studies abroad.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

T S Khurana |280 Answers |Ask -Follow

Tax Expert - Answered on Jan 08, 2025

Question by Ajay - Dec 31, 2024Hindi

Money

I got advance payment of 14L in march 2022 for the sale of land but registration of land happens in April 2022 . In e campaign 14L was marked as feedback required how should i file itr for it

Ans: 01. You should have filed your ITR for F/Y 2021-22, without declaring Rs.14.00 lakhs (received as advance), as Income for the year. Please ensure, that you don't claim TDS (if any deducted on this amount). Declare your total Income in F/Y 2022-23 ITR, working out Capital Gains clearly.
Most welcome for any further clarifications. Thanks.

Rajesh Kumar Singh |30 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Jan 08, 2025

Asked by Anonymous - Jan 08, 2025Hindi

Career

I’ve given SNAP along with a few other MBA entrance exams like CAT and XAT. With the SNAP 2024 results around the corner, I’m wondering if I should prioritize Symbiosis institutes or wait for results from the other exams. What would be a smart way to approach this?

Ans: Wait for other results, MBA From Top 20 institute is better

T S Khurana |280 Answers |Ask -Follow

Tax Expert - Answered on Jan 08, 2025

Asked by Anonymous - Jan 06, 2025Hindi

Money

Hi, currently in Bangalore with a rental income of 75k and a salary of 25k. Living myself in a rented house of 15k, all expenses combined take away my total income. Have a loan of 10 lakh, on the rental income house and 5 lakh of loan from relatives. which I am finding it difficult to pay off. Hence, I am thinking of shifting to Mysore after selling the rental income house clear the loans and buy a rental income property in Mysore. Is it worth, please advise..

Ans: Your thinking needs re-consideration, due to following factors :
01. You have a monthly income of Rs.1,00,000.00. You should first pay your loan taken from the relatives, may be in installments, over a period of 1-2 years. Then, besides paying EMI on Bank Loan of Rs.10.00 lakhs, you should pay some extra amount to clear your loan as early as possible. You would be quite comfortable after payment of your loans.
02. You already have a rental income property, it won't be advisable to sell it & then find a rental income property in another city.
Most welcome for any further clarifications. Thanks.

T S Khurana |280 Answers |Ask -Follow

Tax Expert - Answered on Jan 08, 2025

Question by Malay - Jan 07, 2025Hindi

Money

Bought a flat for Rs 15L in 2010 and sold for Rs 31L in 2024. Will it attract LTCG tax while filing the ITR for assessment year 2024-25? Thanks in anticipation

Ans: 01. Yes, you would be subject to LTCGs while filing the ITR.
Most welcome for any further clarifications. Thanks.

T S Khurana |280 Answers |Ask -Follow

Tax Expert - Answered on Jan 08, 2025

Question by Rajesh - Jan 07, 2025Hindi

Money

How to get accounting done to reduce tax . In scenario as noted below:- I purchased a residential flat in 1.75 CR. BY home loan Hav LTCG 5.5 LAC STCG 3.5 LAC AND HANGING SHARE PORTFOLIO APPROX 1.65 CURRENTLY PAYING LOAN EMI 1.10 LAC PM

Ans: 01. Details provided in your quarry are not sufficient for a proper reply.
Kindly mention dates of Purchase of Flat, Details of LTCG (Sale & Purchase dates with amount). Please also mention, LTCG if from which item (House Property, Agricultural Land, Industrial/ Commercial Property or from Securities. Bifurcation of Your EMI also needs to be done in Interest & Principal Repayment etc.
Most welcome for any further clarifications. Thanks.

Prof Suvasish Mukhopadhyay |279 Answers |Ask -Follow

Career Counsellor - Answered on Jan 08, 2025

Asked by Anonymous - Jan 08, 2025Hindi

Career

My son appeared for SNAP 2024, and we are eagerly waiting for the results. As a parent, I’m not very familiar with the MBA admission process. Once the results are out, how do we know if he’s qualified for the next round, and what are the key timelines we should keep in mind to avoid missing deadlines?

Ans: The first mistake the Indian guardians/parents commit is that too much caring for the child and too much protectiveness. Your son is an adult. Let him explore all the future steps and let him talk to his friends. Now a days children are even busy with mobile in the washroom and parents will look after their future admission steps, this is not acceptable. Now the bird is able to fly, so let him fly. In USA boys and girls become totally independent by 18. But in India even at 28 guardians try to protect them. These words of mine seem to be very bitter, but consider it as a proper vaccine, which will work in future. Just follow me. Regards. Professor.........................................:)

Pushpa R |40 Answers |Ask -Follow

Yoga, Mindfulness Expert - Answered on Jan 08, 2025

Question by Akshay - Jan 03, 2025Hindi

Health

Mam I am having insomania an anxious problem from last 3 years I am taking medicine for anxiety and insomnia but when I stop them the cycle starts again what to do mam

Ans: Dealing with insomnia and anxiety can feel overwhelming, especially when it seems to return after stopping medicines. Yoga and meditation can help you naturally calm your mind and improve your sleep over time.

Here’s what you can try:

Breathing Practices (Pranayama): Start with deep, slow breathing exercises like “Anulom Vilom” (alternate nostril breathing) for 5-10 minutes daily. This balances your nervous system and reduces anxiety.

Gentle Yoga Poses: Practice simple poses like Child’s Pose, Legs-Up-The-Wall Pose, and Butterfly Pose in the evening. These poses relax the body and prepare it for sleep.

Bedtime Meditation: Try a guided meditation or mindfulness practice before sleeping. It helps shift your focus away from anxious thoughts.

Consistent Routine: Go to bed and wake up at the same time daily. Avoid screens an hour before sleep and try reading or listening to calming music instead.

It’s important to learn these techniques with proper guidance. A yoga or meditation coach can design a practice that supports your specific needs. Over time, this consistent practice can help you reduce reliance on medication.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x