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Love Guru

Love Guru   |187 Answers  |Ask -

Relationships Expert - Answered on Nov 09, 2021

Love Guru has been answering relationship and romance related questions on Rediff.com for over 13 years. She won't mince words when telling you what the problem is and what you can do about it. If you want a fresh perspective from an unbiased, objective-thinking individual about your relationship woes, Love Guru could just be the person you need to need to hear from.... more
Mithun Question by Mithun on Nov 09, 2021Hindi
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Relationship

Dear Love Guru,
I want to date a girl who is five years older to me.
I know she is interested in me, but is worried about the age gap.
Can it work like it is for Malaika and Arjun?
The age difference bothers her and she seems to be avoiding me.
But I just want to date her and am not considering marriage unless it works out.
What do you think I should do?
Mithun (name changed)

Ans:

Mithun, five years is not some ridiculous age gap; in fact, I don't think we would be having this exchange if it were the other way around.

But because she's the woman, it poses a problem.

Now unless you're 12 years old, I say go ahead and tell her to stop behaving silly too.

For heavens' sake, you don't need Bollywood examples, it's just a few years -- she's not someone's grandmother you want to date!

You may like to see similar questions and answers below

Anu

Anu Krishna  |832 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 23, 2022

Relationship
Hi Anu,Myself Praveen. I appreciate your writings on Rediff. First of all thanks for that.I would like to ask guidance or your thoughts on establishing a relationship with my lady friend. I met her 4 years back in my old office and we got in company soon and started talking and somewhat share most of the personal s***s too. I started having feelings for her. I mean I wish to have a marital relationship with her because I am very comfortable with her. But I was unable to make any move or feared of losing her company if I tell her my love.That time I never knew her age. Later I moved from that job to pursue some personal goals so I moved to some other place without the knowledge of my own family. The only person who knew about it was her. She stood with me and emotionally supported me and was knowing that it was my strong wish of having that dream/goal. We were in touch as nice friends. Her phone calls were happy moments for me because I was alone at my new place where I'd gone to pursue my dream. Someday she called me and during call she was upset. That day she shared some of her personal things and during the conversation I realised that she is 8 years older than me and she is at her mid 30s. Firstly, it was like a shock for me. I wondered why a beautiful girl like she not got into a marriage or any other serious relationship still that age. Okay, that doesn't matter me. However, knowing about most of the complexity in this partnership including support from both family or cliche society thoughts; I decided to have her as my life partner. But still I am not able to make a move like that. Somehow, I had to come back to my homeplace and sorry to say that I failed to pursue my goal which was bit depressing. Still I couldn't make a move to talk her about this. I am getting an odd feeling that she treats me as a brother or a nice friend only. I am confused when she calls me bro. Some days ago she told me that I am her good brother. Frankly I don't like her calling me bro. I still love her and I always see her as my life partner.The thing is I fear that I may lose her company if I express my love for her. Also I fear that she may emotionally get low if she really considering me as her brother. I don't want to give her any pain, but meanwhile I couldn't miss her in my life. Nowadays, we rarely talk on phone or meet because some of her professional engagements. That is not a problem for me. I respect her as well as her personal space. Only thing I want is to communicate her about my mind and having a relationship with her. I know she might also be concerned about our age gap as well as what society may say, but I don't care such rubbish. I strongly believe that I can be a great partner. Share your thoughts on making an approach without giving her any emotional pain or trauma.
Ans:

Dear PB,

Thank you for your kind words on my writings and columns. Highly appreciate it.

I cannot assure you of the fact of her not having any emotional reactions. Her reactions are not something that you can control.

The easiest way to resolve this confusion that you are going through is to simply express it. It’s similar to how children are.

Have you seen them say things without a filter and unfazed by how the other person will react?

Then along came the adults and asked them to keep quiet and then the child in us grew up to become a recluse and ignore our own feelings.

I agree there is an etiquette and social norms to be followed as adults but to not be able to express our feelings is nothing but conditioning from our childhood.

And what did it teach us? It taught us to avoid the rejection and ensuing disappointment.

That’s exactly what you are running away from; all the rejection that may happen and the disappointment from that.

But what use is that love if you can’t express it for fear of rejection. If you feel so strongly about it, approach it boldly and very gently.

Yes, it may shock her and it’s possible she has no feelings or sees you as a brother, but at least you know where the connection stands.

Now whether she is going to be hurt or not is a question of how emotionally mature she is.

So, before you start the conversation, do request her to hear you fully and not judge you for your honesty. This may ease her shock and help her respond rather than react to you.

On your part, keep your expectations to a low and smile through the situation. It helps lighten the load that you might be carrying.

All the best!

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Dr Ashish

Dr Ashish Sehgal  |97 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 11, 2023

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Hello, I am 45 yrs old, divorced , in love with 29 yrs old girl. We deeply are in love with each other, however Girl’s Parents are not agreeing to our marriage, citing age gap. It’s been 2.5 yrs, have met her Parents many times at their home. Her Parents consider me as a nice guy , but the age gap factor is not letting them to approve our relationship. Am seriously stressed and want to wary that girl only. Request you to kindly suggest 🙏
Ans: It can be challenging when families do not approve of a relationship due to age differences or other factors. However, it's important to remember that ultimately, the decision to enter into a relationship and get married is a personal one that should be based on the feelings and desires of the two people involved.

It's important to continue to communicate openly and honestly with your girlfriend and her parents about your feelings and intentions. Try to listen to their concerns and address them in a respectful and thoughtful way. It may also be helpful to enlist the support of a neutral third party, such as a family counselor or mediator, who can help facilitate a productive conversation between you and your girlfriend's parents.

However, it's also important to recognize that ultimately, you cannot control the decisions of others. If your girlfriend's parents continue to disapprove of the relationship, it may be necessary to consider whether the relationship is sustainable in the long term. It's important to consider not only your feelings for each other, but also the practical realities of your situation and whether you can build a fulfilling and happy life together despite any external challenges.

Ultimately, it's up to you and your girlfriend to decide what is best for your relationship and your future. It may be helpful to continue to work on building a strong foundation of trust, communication, and mutual support, regardless of the outcome with her parents.
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Ravi

Ravi Mittal  |179 Answers  |Ask -

Dating, Relationships Expert - Answered on Oct 25, 2023

Asked by Anonymous - Oct 24, 2023Hindi
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Relationship
Am 54+ and I am in Love with a Women who is 31 years Younger Than me but, we haven't expressed yet that we love each of us she calls me as Kaka i had helped her during her bad times in 2021 after she had got Covid-19 and her parents don't wanted her to be with her as she approached me and told me to keep her with me for the time being till the situation gets normal after discussion how can I as am married single and alone and my daughter living with my in-laws to accomplish her studies in the mean time the girl have'nt disclosed the age but now when I asked about her age then only she told the age. Now what to do I really love her but am afraid (because of unknown of her age she was Looked like Minor in her behavioral nature) of how to convince that I Love her since last 2 years. We get together in City only for Cafeterias Long Drives and also Am taking the class how to Ride Bike (Scooty). Am her Pillon on Back to control I feel As if am with my Wife as she ( of her Pure and Innocent Soul) is no more since she met with an Fatal Car Accident in 2013. What ot do I don't want to Loose her and also Can't Leave without Her. I Also Insisted her to introduce to Her Parents but she says no. And want to clear that we are not in Physical Relationship only pure Soulful relationship. Pl. Reply GURU
Ans: Dear Anonymous,

From your question, I am assuming that she isn't showing the same interest in you. That makes my advice very simple- please leave her alone. You might feel a hundred things about her, but she might not feel the same way. You have every right to love and be loved, but not with this person whom you think might be too young for you. And even if she reciprocates it someday, I would like for you to understand that she doesn't have the emotional maturity of a full-grown adult. Find someone your age, with your maturity level. Let her be; she has her entire life ahead of her and your feelings will do her no good.

There are plenty of women looking for a genuine relationship. It will certainly be best for both of you if you consider dating those women who can give you the right kind of company and emotional support.

Best Wishes.
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Anu

Anu Krishna  |832 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 08, 2024

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Relationship
Hi. I am 47 year old widower and since last one year I am in love with 20 year old girl. We both are from different states, culture and even our eating habits are. She loves my caring nature and I supported her financially without expecting anything (physical relation). Now we both are serious about marriage. Her parents were initially raised concern about age difference but finally they are agree. But I am bit confused if this much big gap in age will harm our married life. She may realise it after some years. Major problem I see in future when we will think about having child..i am confused.. please advice
Ans: Dear Shailesh,
Yes, the age gap might most likely bother her in a few years when she sees you growing older when she finds a lot of younger men around.
You did mention that her parents are concerned about this alliance BUT what about the girl? What does she think of marriage with you? Since she is young, has she had the time to process if the care that you were showering her with is not actually what she has missed from her parents especially her father? You need to be very careful of this one because she could be projecting her lack of love from her parents onto you and then seek it from you!
And you are right to be concerned about children as well...when you are 60 and wanting to slow down, you might still need to push yourself till the child is at least 20...Do the Math...
Do make the girl aware of these concerns that you have and let her decide for herself independently...You will agree that you cannot become a caring figure in her life rather than a husband.

All the best!
(more)
Latest Questions
Moneywize

Moneywize   |100 Answers  |Ask -

Financial Planner - Answered on May 01, 2024

Asked by Anonymous - Apr 24, 2024Hindi
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Money
What is e-insurance all about? How should I convert my physical insurance policy into digital format? Please guideI am 70-year-old. Which insurance company can issue a mediclaim policy to senior citizens like me?
Ans: Here’s a response regarding e-insurance, converting physical policies, and mediclaim options for senior citizens in India, keeping in mind your age and potential limitations with technology:

E-Insurance (Electronic Insurance)

E-insurance refers to purchasing and managing insurance policies entirely online. This eliminates the need for physical paperwork and offers several benefits:

• Convenience: Access and manage policies 24/7 from anywhere with an internet connection.
• Speed: Get quotes and purchase policies quickly without waiting for agents or mail.
• Transparency: Easily view policy details, track claims, and renew coverage online.
• Efficiency: Pay premiums electronically and receive claim settlements faster.

Converting Physical Policies to Digital Format

While directly converting a physical policy to digital format might not be an option with all insurers, many companies offer the ability to manage existing policies online after registering on their websites or apps. Here's a general process (steps may vary by insurer):

• Visit your insurer's website. Look for a section on "Customer Login" or "Policy Management."
• Register or create an account. You'll likely need policy details like policy number and your personal information.
• Link your existing policy. Once registered, follow the insurer's instructions to link your physical policy to your online account.
• If you encounter difficulties, contact your insurance company's customer service department for assistance. They can guide you through the process or provide alternative solutions.

Mediclaim Policies for Senior Citizens in India

Many insurance companies in India offer mediclaim (health insurance) policies specifically designed for senior citizens. These plans typically cater to the unique needs of older adults, considering factors like:

• Pre-existing conditions: Look for policies with shorter waiting periods for coverage of pre-existing ailments.
• Renewal options: Choose plans that guarantee renewal throughout your lifetime, even if you develop health conditions.
• Network hospitals: Opt for policies with a wide network of hospitals to ensure convenient access to healthcare facilities.
• Sum insured: Select a sufficient sum insured to cover potential medical expenses.

Considering Your Age:

Given your age of 70, it's advisable to:

• Contact your existing insurance company: They might offer the option to manage your policy online or suggest a senior-friendly mediclaim plan.
• Seek help from family members or trusted advisors: If navigating online processes is challenging, involve someone you trust to assist you in researching and comparing plans.

Remember:

• Read policy documents carefully before purchasing any mediclaim policy. Understand the coverage details, exclusions, and claim settlement procedure.
• Disclose pre-existing medical conditions accurately during the application process to avoid claim rejections.

I hope this information empowers you to make informed decisions about your insurance needs!
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Money
We have sold land for rs. 32 lakh... How much capital gain i need to pay..
Ans: I can't calculate your exact capital gains tax on the land sale as it depends on several factors not mentioned yet. However, I can explain how it's generally calculated in India and provide some guidance:

Factors affecting your capital gains tax:

Holding period: There are two types of capital gains tax on land - long-term capital gains (LTCG) and short-term capital gains (STCG).
LTCG applies if you held the land for more than 24 months. It benefits from an indexation mechanism that adjusts the purchase price for inflation, reducing your taxable gains.
STCG applies if you held the land for 24 months or less. The tax is calculated on the difference between the selling price and the purchase price without indexation.
Purchase price: This is the original price you paid for the land along with any documented improvement costs.
Sale price: This is the amount you received for the land sale minus any selling expenses.
Tax Rates:

LTCG: Currently, LTCG on land is taxed at 20% with indexation. However, you can save tax on LTCG by reinvesting the gains in specific options like new residential property or government bonds under relevant sections of the Income Tax Act.
STCG: STCG on land is taxed at a flat rate of 20% without indexation.
Recommendation:

To determine your exact capital gains tax liability, it's best to consult a chartered accountant (CA) or a tax advisor. They can consider all the factors mentioned above and calculate the tax based on your specific situation. They can also advise you on potential tax saving options available under the Income Tax Act for LTCG.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Money
Hi Anil, Good morning. I wish to invest in forthcoming RBI Gold Bond. Is it wise to invest in this instrument for long term benefit ?
Ans: Sovereign Gold Bonds (SGBs) issued by the RBI can be a good option for long-term investment in gold, depending on your overall financial goals and risk tolerance. Here's a breakdown of the pros and cons to help you decide:

Pros:

Safe investment: SGBs are backed by the Government of India, making them a safe investment.
Assured returns: You get a fixed interest rate (currently 2.5%) on your investment, paid semi-annually, regardless of gold price fluctuations.
Tax benefits: Capital gains at maturity are exempt from tax if you hold the bond till maturity. Interest income is taxable, but not subject to TDS.
Eliminates storage risks: You avoid the risks and costs associated with storing physical gold.
Liquidity: SGBs are tradable on stock exchanges after the initial lock-in period (usually 5 years).
Cons:

Lock-in period: SGBs typically have a lock-in period, limiting your access to the principal amount during that time.
Price volatility: The gold price itself can fluctuate, and you might not get a high return if the price falls significantly during the investment period.
Lower returns compared to other options: SGBs may offer lower returns compared to some stocks or mutual funds over the long term.
Overall, SGBs can be a good fit for investors seeking a safe and reliable way to invest in gold for the long term. They offer a hedge against inflation and currency fluctuations, with the added benefit of regular interest income.

Here are some additional things to consider:

Your investment horizon: If you need access to your money before the maturity period, SGBs might not be the best option.
Your risk tolerance: If you are uncomfortable with price fluctuations in gold, SGBs might not be ideal.
Your portfolio allocation: SGBs should ideally be a part of a diversified portfolio, not your sole investment.
It's wise to do your own research and consult with a financial advisor before investing in SGBs. They can help you assess your risk tolerance and determine if SGBs are a good fit for your financial goals.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Jan 09, 2024Hindi
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Money
I am absolutely confused with multiple mutual funds launched by endless FUNDS. What is going on, i think this not a healthy investment scene for small and medium investors. Just like other professionals like law, medical, private education it seems that Mutual funds are working for the benefit of Advisors, Broking Housing and big bags. It seems All of them are flourishing on insider trading and virtually fleecing their retail clients by passing on reverse recommendations. Is no Regulation required for saving the small investors from this free for all.Regulation.
Ans: It's understandable to feel overwhelmed by the vast array of mutual funds available in the market. The investment landscape can indeed seem complex, especially for small and medium investors navigating their way through various options.

Regulation is crucial in ensuring fairness and transparency in the financial markets, particularly to protect retail investors from potential exploitation. Regulatory bodies like the Securities and Exchange Board of India (SEBI) play a vital role in overseeing mutual funds and enforcing compliance with regulatory standards.

However, despite regulations, it's essential for investors to remain vigilant and informed about their investment decisions. Educating oneself about the fundamentals of investing, understanding different types of mutual funds, and seeking advice from trustworthy sources can help mitigate risks associated with investing.

While there may be instances of misconduct or unethical practices in the industry, many financial advisors and professionals genuinely strive to serve their clients' best interests. Choosing a reputable advisor or financial planner who operates with integrity and transparency can significantly enhance the investment experience for retail investors.

As investors, it's crucial to advocate for greater transparency, accountability, and investor protection measures within the financial industry. By staying informed, engaging with regulatory authorities, and holding financial institutions accountable, we can contribute to creating a more equitable and secure investment environment for all.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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A portfolio of 10 Crore in next 5 years. Want to start 80-90 k sip in MF but not in Indian market. YOUR ADVISE REQUIRED? Me and my wife jointly monthly income three Lakh per month. By profession I am a PVC flex material trader, my wife is training centre owner. Having two cute nd naughty son 4 yrs and 2 yrs old. Myself Vishal Choubey nd My wife shanti both aged 39 years. Having 5 houses Rental income arround 55k per month collectively. 1 CR term insurance for both of us in case something happens. An lic of 6 Lac going to mature 2026. Till 31st March 2024 PPF Vishal (10L)+ 10(L) shanti. Ujjivan bank 9k share @ 21rs, Mix share 2Lac. Edelweiss greater China 3.1Lacs, Axis China fund 5.2 Lakh, An sip of 49000/- in Nippon Taiwan current investment 7.37 Lakh market value 9.53 lakh, 3k sip in icici tax fund. Idfc tax fund an investment of 70k is now 2.6 Lakh, Many fund got doubled in last 3-4 years Approx 50 lakh MF portfolio. FD 14 Lakh. A land parcel of 1 acre approx 40 Lakh. All the assets are created in last 10yrs. Wish to sell one apartment and invest into China fund your advise required?
Ans: Vishal and Shanti, it's inspiring to see how diligently you've built your portfolio over the years, especially while juggling busy professional lives and raising two adorable sons. Your dedication to securing your family's future is truly commendable.

Considering your aspirations to grow your portfolio to 10 Crore in the next 5 years, diversifying your investments beyond the Indian market through SIPs in MFs is a prudent move. It reflects your forward-thinking approach to wealth creation.

Before deciding to sell one of your apartments to invest in the China fund, reflect on the potential risks and rewards. Are you comfortable with the level of exposure to international markets, especially given the current geopolitical climate? Would the sale of the apartment significantly impact your overall financial stability and future plans?

As a Certified Financial Planner, my advice would be to carefully evaluate your investment goals, risk tolerance, and the long-term prospects of the China fund before making any decisions. Your journey towards financial success is a testament to your hard work and resilience. Keep navigating with wisdom and foresight, always prioritizing the well-being of your family.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Money
Hello Sir. In Jan 2025, I'll receive a lumpsum of Rs 11L from one of my prior investment. I want to put this money in mutual funds. My horizon is 10 years. I want this corpus to be used for child college education. Please suggest how to go for it.
Ans: Your plan to invest the lump sum of Rs 11 lakh for your child's college education is a prudent step. Considering your 10-year investment horizon, here's a suggested approach:

Goal Clarity: Define the expected expenses for your child's college education, factoring in tuition fees, living expenses, and other related costs. This will give you a clear target to aim for with your investment.
Risk Tolerance Assessment: Assess your risk tolerance to determine the appropriate allocation between equity and debt funds. Since you have a 10-year horizon, you can consider a relatively aggressive approach with a higher allocation to equity funds for potentially higher returns.
Diversified Portfolio: Build a diversified portfolio by investing in a mix of equity and debt mutual funds. Equity funds can provide growth potential, while debt funds offer stability and capital preservation.
Asset Allocation: Allocate a significant portion of the lump sum towards equity funds to harness the potential for long-term capital appreciation. You can consider allocating the remainder to debt funds to provide stability and mitigate downside risk.
Regular Review: Monitor the performance of your mutual fund investments regularly and rebalance your portfolio if needed to maintain your desired asset allocation.
Tax Efficiency: Consider tax-efficient investment options such as Equity Linked Savings Schemes (ELSS) for equity investments and Tax-Saving Fixed Deposits or Debt Funds for debt investments to optimize tax benefits.
Systematic Withdrawal Plan (SWP): As your child's college education approaches, consider setting up an SWP from your mutual fund investments to meet the educational expenses systematically while continuing to benefit from potential market growth.
By following these steps and staying disciplined with your investment strategy, you can work towards building a corpus that will support your child's college education aspirations over the next decade. It's always advisable to consult with a Certified Financial Planner to tailor the plan according to your specific circumstances and goals.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Hi Sir, Is it good to have bhandan small cap fund and quant small cap fund sip of 12k each per month for my two daughters education for a period of 12-13 years Any further addition required here . Or extra step up sip required. Both my girls are 5 months old now. Note: i have the notion that i wont spend too much money on any donation schemes for education foe my daughters for college[so mostly Doctor studies is ruled out] so only engineering/CA kind of studies is what i can afford . Regards Sai
Ans: It's heartening to see your dedication to securing your daughters' future. Starting SIPs for their education at such a young age reflects your foresight and commitment as a parent.

Investing in Bhandan Small Cap Fund and Quant Small Cap Fund SIPs for their education is a thoughtful choice. But let's ponder: are these investments sufficient to cover the rising costs of higher education? Considering inflation and evolving educational landscapes, would a step-up SIP or additional investments be prudent?

As you envision their academic journey, it's essential to ensure financial preparedness without compromising on your principles. By consulting a Certified Financial Planner, you can chart a path that aligns with your aspirations and financial capabilities.

Your decision not to rely on donation schemes for their education is admirable. It reflects your belief in the value of hard work and diligence, qualities you undoubtedly wish to instill in your daughters.

Embrace this journey with confidence and optimism, knowing that every rupee invested today is a step towards a brighter tomorrow for your daughters.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Apr 30, 2024Hindi
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Money
Respected Ramalingam Sir, greetings. I am 49yrs. My present investments (1). Monthly 20k SIP, (2) Rs.10lk into Equity linked MF thru STP. (3) PPF maturing by 2026 March end with 15years tenure, expecting Rs.24lk. If I target to have monthly fixed income around Rs.3 or 4lakhs after retirement at my 60yrs of age by 2036, please suggest hiw should I go further in investing? As said, PPF is maturing in 2026 March. Should i continue for 5 more years or to invest that amt in Mutual funds or sny other to ge more gain? Appreciate your expert suggestions and advise. Thank you.
Ans: It's wonderful to hear about your dedication to securing your financial future. As you approach retirement, it's natural to seek stability and security in your investments. With your SIPs and equity-linked MFs, you're already on a commendable path.

As your PPF matures in 2026, you have an opportunity to reassess your investment strategy. Consider the balance between risk and reward. Should you extend the PPF tenure or explore other avenues like mutual funds? It's a decision that requires thoughtful consideration.

Imagine the possibilities of continuing to grow your wealth over the next decade. Are there investment avenues that align better with your goals and risk tolerance? A Certified Financial Planner can guide you through this journey, offering expertise and reassurance.

Remember, investing is not just about numbers; it's about peace of mind and confidence in your future. Your journey towards financial security is a testament to your resilience and foresight. Keep moving forward with optimism and wisdom.
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Ramalingam

Ramalingam Kalirajan  |1165 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

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Money
Sir I invest 1 lakh rs lumsum in Quant small cap fund and I will invest every year Lumsum investment in that fund when the market dip, I will do it for atleast 10 year's, will I get good returns, is this strategy right..?
Ans: Investing a lump sum amount in a small-cap fund like Quant Small Cap Fund and then investing additional lump sums during market dips can be a part of a sound investment strategy, but it's important to understand the risks and nuances involved.

Here's a breakdown of the strategy and considerations:

Investing in Small Cap Funds: Small-cap funds have the potential to offer high returns over the long term, but they also come with higher volatility and risk. These funds invest in smaller companies with higher growth potential but may also be more susceptible to market fluctuations.
Lump Sum vs. SIP: Investing a lump sum amount followed by additional lump sum investments during market dips can be an effective strategy to take advantage of market volatility. However, it's essential to be mindful of timing and not try to time the market perfectly, as this can be challenging and risky.
Diversification: While investing in small-cap funds can potentially offer high returns, it's crucial to ensure diversification across asset classes and fund types to mitigate risk. Consider allocating a portion of your portfolio to other asset classes like large-cap funds, mid-cap funds, debt funds, and even safer options like fixed deposits or bonds.
Long-Term Horizon: Investing with a long-term perspective (at least 5-10 years or more) can help smooth out the impact of short-term market fluctuations and take advantage of the power of compounding. Be prepared to stay invested through market downturns and avoid making emotional decisions based on short-term market movements.
Risk Management: Assess your risk tolerance and investment goals before allocating a significant portion of your portfolio to small-cap funds. These funds can be volatile, and there's a possibility of temporary losses during market downturns. Ensure that you have an emergency fund and appropriate insurance coverage in place to handle unexpected financial needs.
Regular Review: Monitor the performance of your investments regularly and make adjustments as needed based on changes in your financial situation, investment goals, and market conditions. Rebalance your portfolio periodically to maintain your desired asset allocation.
In summary, investing in small-cap funds like Quant Small Cap Fund and adding lump sum investments during market dips can be a part of a well-rounded investment strategy, provided it aligns with your risk tolerance, investment goals, and time horizon. However, ensure diversification, stay invested for the long term, and regularly review your portfolio to make informed decisions. Consider consulting with a financial advisor for personalized advice tailored to your specific circumstances.
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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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