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Ramalingam

Ramalingam Kalirajan3956 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked on - May 07, 2024Hindi

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Sir, my son is now 27 years old and would like to invest approx Rs. 10,000- 12,000 per month for the next 15-20 years and an approximate increase of 10-15% per year. Kindly suggest which type of investment should be planned in addition to any other suggestion's which would create a substantial monthly income after 20 years taking into consideration the money value and inflation
Ans: That's a fantastic plan for your son. Starting investments early creates a solid financial future. Let's explore some options to build a good monthly income after 20 years:

Building a Strong Investment Portfolio:

Diversification is key: Invest in a mix of asset classes like Equity (stocks), Debt (bonds), and Hybrid (mix of equity and debt) to manage risk and target long-term growth.
Consider Equity Mutual Funds: Actively managed Equity Mutual Funds can potentially generate good returns over the long term. They are professionally managed by experts.
Investing for Growth and Beating Inflation:

Systematic Investment Plan (SIP): Regular monthly investments (SIP) of Rs. 10,000-12,000 with a planned 10-15% annual increase is a smart approach. It inculcates discipline and leverages rupee-cost averaging.
Long-term horizon: A 20-year investment timeframe allows for market fluctuations to even out, focusing on long-term growth that outpaces inflation.
Planning for Future Income:

Goal-based investing: While aiming for monthly income, consider your son's future goals like retirement or higher studies. Tailor the investment mix accordingly.
Review and Rebalance: Regularly review the portfolio performance and rebalance allocations if needed to maintain the desired asset class mix.
Getting Professional Advice:

Talk to a CFP professional: A Certified Financial Planner can create a personalized investment plan for your son, considering his risk tolerance and financial goals.
Investment planning is crucial: A CFP can help navigate different investment options and choose the ones that best suit your son's needs.
Remember: Consistent investing, diversification, and professional guidance are key to building a strong financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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Ramalingam

Ramalingam Kalirajan3956 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

Asked on - Oct 27, 2023Hindi

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i have taken voluntary retirement presently the age is 56 and plan to invest about 20-25 Lakhs, I shall also be earning a monthly pension of Rs. 32,000/- approx. Can you please suggest how to invest about 20-25 lakhs
Ans: Congratulations on taking the step towards voluntary retirement! With your pension providing a steady monthly income, investing your retirement corpus wisely can help ensure a comfortable and secure future.

Given your age and the desire for a stable investment, consider a mix of both equity and debt instruments to balance growth and safety. Here's a suggested allocation:

Emergency Fund: Ensure you have 6-12 months of living expenses in a liquid fund or a high-yield savings account for unforeseen expenses.
Fixed Deposits: Consider allocating a portion, say 30-40%, in fixed deposits or short-term debt funds. These provide stability and predictable returns.
Debt Funds: For another 30-40% of your corpus, consider investing in diversified debt funds or corporate bond funds. They offer better returns than FDs with moderate risk.
Equity Mutual Funds: With the remaining 20-30%, you can consider investing in balanced funds or hybrid equity funds. These funds provide exposure to equity markets while also having a debt component to reduce volatility.
Pension Plans: Given your pensionable age, consider investing a small portion in an immediate annuity plan or a pension scheme to further secure your monthly income.
Remember, the key is diversification and periodic review. As you move forward in your retirement journey, it might be beneficial to consult with a financial advisor to tailor this strategy further to your needs and goals.
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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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