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Nikunj Saraf |308 Answers |Ask -Follow

Mutual Funds Expert - Answered on May 22, 2023

Nikunj Saraf has more than five years of experience in financial markets and offers advice about mutual funds. He is vice president at Choice Wealth, a financial institution that offers broking, insurance, loans and government advisory services. Saraf, who is a member of the Institute Of Chartered Accountants of India, has a strong base in financial markets and wealth management.... more

Question by Samir on Mar 27, 2023Hindi

Money

I am 60 retired about a year bank from a large PSU. Now consulting and earning about 100,000 per month. Further 8 earn about 1.75 lakh from rental. I hv been investing in following monthly sips for last 2 years. Icici Prudential equity and debt 10000 Pgim midcap. 20000 Quant tax. 20000 Mirae assets. 8000 Quant midcap. 14000 Axis midcap. 10000 Parag parikh. 15000 Canara tobacco small cap. 10000 All direct and growth plan. Current value is 16.3 lakh. I want to achieve 25 lakhs in 1 year fr marriage of my son. Further I need another 40 for younger son education in 3 years. Do u think it these are achievable targets? Can u suggest any changes in chosen funds ? I hv my own houses and car. Except fr 15000 emi towards car, there is no major liability. Pl revert Sammir Kapoor

Ans: Hello Sammir. Considering your goals and requirements, and assuming you will be contributing to SIPs in the coming year as well, both the one year and three year goals can be achieved. Your portfolio is in line with the market and it seems you have done thorough research with current market. No modification is required.

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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Sunil Lala |173 Answers |Ask -Follow

Financial Planner - Answered on Feb 11, 2024

Asked by Anonymous - Jan 29, 2024Hindi

Money

I am 38 and my wife is 36, we have a child and live in Mumbai with my parents.I have started the following 4 SIPs 4 months back 1. PPFAS Flexicap- 15k 2. Nippon Small Cap- 15k 3. SBI Magnum Midcap-15k 4. Kotak Emerging Equities-15k Apart from that me and wife have around 80-82 lakhs in equity and around 7-8 lakhs in PPF and EPFO. Our goal is to have enough funds for our sons education and retirement by 50. Our monthly expenses right now are around 1.5 Lakhs. Are the above funds good enough to achieve these goals and would you recommend any other fund intead of the ones listed above. My aim is to generate maximum returns.

Ans: Your fund selection is good

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 16, 2024

Asked by Anonymous - Apr 16, 2024Hindi

Money

Hi, i am 42 years old 2 children 7 and 11 yrs each. earning currently 2 lakh net. I planning to create a retirement plan. I have done some investments but have never planned with specific goals so far. I intend to grow my money as much possible. And i am willing to take few risks, like i have started doing derivatives in options ( only nifty and I am not doing intra day). Please advice if my investment are reasonable and what are the other options i have to invest. Here are my assets and liability Land at current value : 70 lakhs Gold at current value : 21 lakhs Fixed Deposit : 10 lakhs PF balance : 11 lakhs Sukanya samridhi (annual1.5lakh) : 20 lakh Ppf for son ( annual 1.5 lakh): 14 lakh Direct equity ( 6 lakh invested) : current value : 17 lakhs Mutual Funds Franklin templeton tax saver growth( sip 4000) : 12 lakh Pp flexi cap growth(Sip 2000): 77 thousand Newly started Sip Quant small cap (sip 1000) Edelweiss momemtum (SIP) Liability ( car loan) : 20 lakhs

Ans: Given your age, income, and willingness to take risks, you have a decent mix of assets, but there are areas to focus on for a balanced retirement plan:

Assets:
Your assets are well-diversified with real estate, gold, fixed deposits, and various investment instruments like PF, Sukanya Samriddhi, PPF, direct equity, and mutual funds. However, your direct equity and derivatives trading can be volatile; ensure they align with your risk appetite.

Liabilities:
The car loan is a liability that can impact your monthly cash flow. Consider paying it off sooner to reduce interest costs and free up monthly income.

Suggestions:

Increase Equity Exposure: As you're willing to take risks, consider increasing exposure to equity mutual funds and direct equity investments.

Review Derivatives Trading: Be cautious with options trading due to its speculative nature. Ensure it doesn't dominate your portfolio.

Emergency Fund: Build a separate emergency fund to cover 6-12 months of expenses.

Health and Life Insurance: Ensure you have adequate health and life insurance coverage to protect your family's financial future.

Retirement Corpus: Calculate the required corpus for retirement based on your desired lifestyle post-retirement. Use a retirement calculator to estimate the monthly contributions needed to achieve this goal.

Diversify Investments: Explore other investment avenues like debt funds, international funds, to further diversify your portfolio and manage risks better.

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 24, 2024Hindi

Money

Hi Sir, I am 36 years old current salary 1.4 L monthly and want to have a retirement corpus of 5 Cr at the age of 45. I am investing in below sips ICICI prudential value discovery growth-5k since 2016 Pgim India flexi cap 5k since 2020 Pgim midcap 5k since 2020 Nippon India small cap growth 8k since 2024.please let me know if my investments are okay and do I need to diversify

Ans: You've already taken a commendable step by starting your investments, and aiming for a significant retirement corpus is a great goal. Let's evaluate your current investments and suggest some adjustments.

Diversification:
While you have diversified across different categories like flexi-cap, mid-cap, and small-cap, you might want to consider adding a large-cap or a balanced fund to bring stability to your portfolio.
Diversification across different market caps and sectors can help in reducing the overall risk.
Consistency:
It's good to see that you've been investing consistently, which is the key to long-term wealth creation.
Review the performance of your funds annually to ensure they are aligning with your financial goals.
Risk Assessment:
Mid-cap and small-cap funds tend to be riskier but offer higher growth potential. Ensure you are comfortable with the associated volatility and risk.
As you approach closer to your retirement age, you might want to gradually shift towards more conservative investment options to safeguard your corpus.
Goal Planning:
To achieve a retirement corpus of 5 Cr by the age of 45, you need to ensure your investments are aligned with this goal.
Consider increasing your SIP amounts periodically or adding lump-sum amounts whenever possible to accelerate your wealth accumulation.
Professional Advice:
Consulting a Certified Financial Planner can provide personalized advice tailored to your financial situation and goals.
They can help in optimizing your portfolio, ensuring you are on track to achieve your retirement goal, and making necessary adjustments based on changing market conditions and your financial situation.
In conclusion, while your current investments are a good start, diversifying further and ensuring alignment with your retirement goal will be beneficial. Regularly reviewing and adjusting your portfolio as needed can help you stay on track. Remember, investing is a marathon, not a sprint, and staying disciplined and patient will be key to achieving your financial goals.

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Question by RASHITA - Mar 26, 2024Hindi

Money

kindly suggest some three mutual fund long term for the age for a person of 35 having income 1,25 lakh per month wants to invest 35000 per month as he is first time investor as early as possible

Ans: For a 35-year-old first-time investor with a monthly income of 1.25 lakh and a monthly investment capacity of 35,000, here are three mutual funds suitable for long-term investment:

Large Cap Fund:
Why: These funds invest in large, well-established companies that have a track record of stable growth. They are relatively less volatile and offer a good starting point for new investors.
Potential Choice: Large Cap Equity Funds that have a consistent performance history and a low expense ratio.
Multi-Cap Fund:
Why: These funds have the flexibility to invest across market caps, i.e., in large, mid, and small-cap stocks. This diversification can help in capital appreciation while managing risk.
Potential Choice: Multi-Cap Funds that have a proven track record of delivering consistent returns across market cycles.
Balanced Advantage Fund:
Why: These funds dynamically manage the equity-debt allocation based on market valuations. In bullish markets, they can increase equity exposure, while in bearish markets, they can shift towards debt, offering a balanced approach.
Potential Choice: Balanced Advantage Funds with a disciplined investment strategy and a focus on capital preservation along with growth.
Remember to consider the fund's past performance, fund manager's experience, expense ratio, and the fund house's reputation before investing. Additionally, reviewing and rebalancing the portfolio periodically can help in aligning it with your long-term financial goals. It's advisable to consult a Certified Financial Planner for personalized advice tailored to your financial situation and goals. Happy investing!

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Mar 24, 2024Hindi

Money

Hello Vivek , I have taken early retirement due to my health issues. I have 2 kids one in 12th and second 9 th Class . I keep aside 50 L for my kids education , 25 L PPF , 14 L mutual fund, 10 L bond , 5 L FD . My PPF will mature 2026 and Bonds will mature 2024. I have 70 L EPF and i will have approx 50 L selling of property . I have my own house of 1.5 Cr . With these money can i get 1 L per month , but i do not want to touch kids education money . Your suggestion will help me to see my finaances. My wife has decent job she eran 50 K per month and we have health insyrance and term insurance.

Ans: Firstly, I'm sorry to hear about your health issues but commend you for taking proactive steps towards financial planning, especially for your children's education and your future needs.

With your current savings and investments, there's a possibility to generate a monthly income of 1 Lakh, but it requires careful planning:

EPF and Property Sale: Your EPF corpus of 70 Lakh and the expected 50 Lakh from property sale can be significant contributors. Consider options like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), or even annuity plans to generate regular income without depleting the principal.
Mutual Funds & Bonds: Continue to let your Mutual Funds grow for future needs. Bonds maturing in 2024 can also be reinvested in income-generating avenues.
PPF: Once it matures in 2026, you can either reinvest or use a portion for your monthly income needs.
House: If possible, you could explore options like reverse mortgage or renting out a portion for additional income, without selling the property.
Expense Management: Since you have set aside money specifically for your children's education, avoid using it for your monthly income. Focus on optimizing other assets to generate the required 1 Lakh/month.
Health and Insurance: It's great that you have health and term insurance. Ensure they are adequate to cover unforeseen medical expenses and provide financial security to your family.
Remember, the goal is to strike a balance between generating sufficient income and preserving capital. Consulting a Certified Financial Planner can provide a tailored plan considering your unique circumstances, helping you navigate this phase with confidence.

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Mar 27, 2024Hindi

Money

Is It okay to invest now Rs five lakh in Quant Absolute fund or any other aggressive hybrid fund? Time horizon 3- 5 years.

Ans: Investing Rs.5 lakhs in an aggressive hybrid fund like Quant Absolute or any other fund with a similar profile can be considered, but there are some aspects to ponder upon.

Aggressive hybrid funds typically invest around 65-80% in equities and the rest in debt instruments. This balanced approach aims to offer potential for growth while reducing volatility compared to pure equity funds.

For a time horizon of 3-5 years, such a fund might be suitable, provided you are comfortable with the associated risks. While the equity component can provide growth potential, market fluctuations can impact short-term returns. The debt portion offers some stability but may not shield entirely against market downturns.

Before investing:

Risk Appetite: Assess your risk tolerance. Are you comfortable with potential fluctuations in the value of your investment?
Investment Horizon: Ensure your time frame aligns with the fund's strategy. Short-term investments can be more volatile.
Diversification: Consider diversifying across asset classes to spread risk.
It's advisable to consult with a Certified Financial Planner or do thorough research to understand the fund's strategy, past performance, and risks associated. Remember, investments should align with your financial goals and risk profile.

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Question by Maulin - Mar 28, 2024Hindi

Money

Hi, I plan to Invest Rs. 5000/- per month. Pls advice when I can invest (NPS, Shares, MF, Gold) ?

Ans: It's commendable that you're considering investing. With Rs. 5000/- per month, you have several options to consider. Each investment avenue you mentioned has its own benefits and risks, so let's break them down:

NPS (National Pension System): This is a retirement-focused investment with tax benefits under Section 80C. It offers a mix of equity, corporate bonds, and government securities, providing a balance between growth and stability. However, withdrawals are restricted until retirement.
Shares: Investing directly in stocks offers potential for high returns but comes with higher risks. It requires research and monitoring. With a long-term perspective and by diversifying across sectors, you can aim for better returns.
Mutual Funds (MF): MFs offer diversification and professional management. You can choose from equity, debt, or hybrid funds based on your risk appetite and investment horizon. SIP (Systematic Investment Plan) is a good way to invest regularly.
Gold: Gold acts as a hedge against inflation and economic uncertainties. You can invest in physical gold, gold ETFs, or sovereign gold bonds. It's a good diversifier but doesn't offer regular income.
Considering your investment horizon and risk tolerance, a diversified approach combining MFs and NPS might be a balanced strategy. You could allocate a portion to NPS for retirement and the rest to MFs across different categories for growth. As you gain more knowledge and confidence, you could gradually venture into direct stock investments or gold. Always remember to review and adjust your portfolio periodically to stay aligned with your financial goals.

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Question by Amin - Apr 03, 2024Hindi

Money

Sir I am a regular reader of rediffguru, pls check my Mutual funds for long term 7-10 year investing from last 3 years Parag parikh flexi cap-6k/month SBI Contra fund 6k/month SBI focus fund 2500/month Axis blue chip 5000/month SBI nifty50 index fund 5000/month PPF 8000/month Please advise for long term and I can add another 15k per month to the mutual fund, where I should add 15k per month Thank you

Ans: It's great to see your commitment to long-term investing. Your current portfolio showcases a mix of flexi-cap, contra, focused, and index funds, which is a good start. Given your 7-10 year horizon, it's essential to maintain a balance between growth and stability.

Considering your existing investments, adding 15k per month, you could diversify further. Given the current market scenario, you might consider adding to sectors or fund types that complement your existing holdings. For instance, you might look into international funds for geographical diversification, or debt funds for stability.

It's also worth considering your risk tolerance and investment goals when deciding where to allocate the additional funds. If you're comfortable with a bit more risk for potentially higher returns, you could lean towards mid or small-cap funds. Conversely, if you prefer stability, large-cap or balanced funds might be more suitable.

Remember, diversification is key to managing risk, so try not to put all your eggs in one basket. It might be beneficial to consult with a Certified Financial Planner to tailor a strategy that aligns with your financial goals and risk tolerance. Keep up the good work, and happy investing!

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 06, 2024Hindi

Money

I started investing late, at 39 years..I now have a mutual fund portfolio in Axis, ABSL, HDFC, HSBC, ICICI, KOTAK, MIRAE, SBI.. covering small/mid/large/large and mid cap investing 60000 INR every month... I also have PPF, NPS, APYS, KVPs, FD/RD, GOLD BONDS.. plus, i have HDFC SANCHAY PLUS, SBI SHUBH NIVESH AND ABSLI SECURE PLUS running.. I'm aiming for a decent corpus by the time I turn 60... is there anything i need to do or change ?

Ans: It's commendable that you've taken charge of your finances and have a diversified portfolio. However, at 39, you still have ample time to build a substantial corpus by the time you turn 60.

While your mutual funds and other investments show a good mix, there's a concern with the insurance policies you mentioned - HDFC SANCHAY PLUS, SBI SHUBH NIVESH, and ABSLI SECURE PLUS. These are often traditional insurance-cum-investment products, which may not be the most efficient way to achieve long-term growth. They tend to offer lower returns compared to pure investment avenues and come with higher charges.

One significant drawback is the lack of transparency. The costs associated with these policies, including management charges and agent commissions, can erode your returns substantially over time.

I'd recommend considering term insurance instead for pure protection needs, which offers a higher coverage at a lower premium. For investments, focus on market-linked products like mutual funds, which historically have the potential to offer better returns over the long term.

Review your portfolio periodically, ensuring it aligns with your financial goals and risk appetite. Consider seeking advice from a Certified Financial Planner to optimize your investment strategy further. Remember, it's never too late to make informed financial decisions!

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 08, 2024Hindi

Money

I am 23 years old, my monthly salary is 70K. I just started my journey and made a savings of 5L in last 1 year. I want to know how can I plan my investments in FDs, Stocks? What should be my plan to achieve 1 CR goal and in how much time it can be achieved? Monthly expenses are near to 30K

Ans: Congratulations on building a commendable savings amount at such a young age! Your proactive approach towards financial planning is admirable. With a monthly surplus after expenses, you're in a good position to embark on an investment journey.

Starting with FDs can be a safe bet for a portion of your savings, offering stable returns. However, considering inflation, FDs might not help you achieve your ambitious 1 CR goal swiftly.

Diving into stocks can potentially offer higher returns but comes with its share of risks. It's essential to educate yourself, perhaps starting with blue-chip stocks or index funds to get acquainted with the market dynamics while minimizing risks.

To achieve your 1 CR goal, you'll need a combination of disciplined savings, strategic investments, and time. With an initial 5L and consistent monthly investments, especially in equity-based instruments, you can aim to achieve this milestone in a decade or so, given the power of compounding.

Remember, investing isn't just about picking the right instruments but also about patience, discipline, and continuous learning. As you progress in your career, revisit and revise your financial plan to align with your evolving goals and risk appetite. Happy investing!

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 09, 2024Hindi

Money

Hello experts I'm new to stocks and active learner I have invested mutual fund sip last month of 5k 1) Nippon large cap 2.5k 2) uti index fund 1.5k 3) motilal midcap of 5k Planning to invest another 2k in quant small cap Kindly guide me through this and pour your thoughts and knowledge , you are welcome

Ans: It's commendable to see your enthusiasm and proactive approach towards investing. Embarking on the journey of stock market investing is both exciting and enlightening. Your choice of funds reflects a balanced approach, covering large caps, mid caps, and now venturing into small caps.

Diversifying across different categories can be a prudent strategy, spreading the risk and tapping into various market opportunities. Remember, each category behaves differently based on market conditions, and having a mix allows you to navigate these fluctuations.

But while it's essential to diversify, it's equally crucial to stay informed. Regularly updating yourself with market trends, fund performances, and economic indicators can empower you to make informed decisions.

Your proactive attitude towards learning is your strongest asset. Engage with financial news, attend webinars, or even consider joining investment forums to gain insights and perspectives.

Remember, investing is a journey of continuous learning and adaptation. Embrace it with curiosity, and with the right knowledge, your investments can pave the way towards your financial goals. Happy investing!

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Ramalingam Kalirajan |833 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 11, 2024Hindi

Money

I frequently invest in stocks value range from 1 to 5 lac approx as short term investment and withdraw. So it shows big entry in my bank accounts for fund withdrawal and fund addition via my broking/demat account So my doubt is, 1 can it cause issue to my bank account like bank could freeze for big transactions in my account or raise any doubt? As my all my savings are in that bank account so I'm concerned if they freeze my account because of any reason then it would be huge problem to me. I have done full kyc via bank executive and every document is updated with bank already. 2 Can it cause any issues in income tax department? I pay tax as per Capital gain and income so all tax is paid appropriately but big transactions can cause any issues? Thanks in advance

Ans: It's great that you're actively involved in stock investments, but I understand your concerns about the impact on your bank account and potential implications with the tax department.

Large and frequent transactions can sometimes trigger alerts in banking systems, leading them to scrutinize the activity. While you've completed full KYC and your documents are updated, these systems operate on algorithms that look for unusual activity. But remember, it's their job to ensure security and compliance.

Regarding the income tax department, as long as you're paying taxes on your capital gains and income from these transactions, you're fulfilling your legal obligations. However, significant transactions might attract their attention for a closer look.

The key here is transparency. Keeping meticulous records of your transactions, and being prepared with documentation can help in case of any inquiries.

Consulting a Certified Financial Planner can provide clarity and guidance on managing these concerns effectively, ensuring you navigate these waters smoothly. Remember, it's always better to be proactive and transparent to avoid any unforeseen hiccups.

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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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