Do you have personal finance queries?
Please ask your questions here and rediffGURU Ramalingam Kalirajan, founder, Holistic Investments (external link), will answer them.

Vikash: Sir, I have lost about 12 lakh in trading and whenever I go to recover it I lose more, what is the best way to get out of it and regain my financial health?

Trading is a zero-sum game. Money is just getting rotated from one trader to the other trader. Money is not getting generated. The only person who makes regular income in trading is the broker.

So instead of trading, please consider, long term investing via mutual funds.

Giridhar: Currently my Son is investing about 5000 each in quant small cap fund growth, sbi small cap fund growth and aditya birla mid cap index fund growth. Please advice for any changes and also recommend couple of funds where he can invest. thx

Investing only in midcap and small-cap funds will make his portfolio more aggressive. To be a moderate risk taker, please add a large cap fund as well. That will add more stability to his portfolio.

Ashok: I am 50 year old and my CTC around 20 Lakh. I want to start now MUTUAL FUNDS / SIP investments with a single lump sum amount for high return. Right now I am putting regular money in BANKS FD’s only. Kindly advise / suggest how can I go ahead.

FDs will not help you beat inflation. FD is not a good place to park your long-term money.

Please do lump sum and SIP in a good actively managed diversified equity funds.

Anonymous: IT engineer 45 yrs old. I and wife earn 80L per year. 1.25L monthly investment in SIP. Current Mutual fund networth is 70L. We have company esops worth 7-8CR. Have 2 kids of age 14 yrs. Willing to retire by 50 yrs of age. Willing to secure – Kids education, kids marriage, health insurance and monthly income 2-3L. How much corpus we need before retiring?

How much corpus needed depends on what kind of monthly income you are expecting during your retirement.

BTW, esops 7-8 crores , need to be definitely diversified. Your employment income and investment income should not be from the same source. This increases your overall risk.

Anonymous: I have 10 lakh rupees in FD which I want to move in MF. Please suggest some fund for lump sum amount to invest for 5-7 years.

FD is a Risk Free Asset. But will not beat inflation. Also it is not tax efficient.

Debt Mutual Funds have low risk. Again, this also will not beat inflation. Tax deferment is possible.

Equity funds have high risk. This will surely beat inflation in the long run. Tax efficient.

Instead of lump sum, you may consider STP in actively managed diversified equity funds, if you have a right financial planner / a professional mutual fund distributor. If you want to do it yourself, then you can settle for conservative index funds.

  • You can ask rediffGURU Ramalingam Kalirajan your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

Source: Read Full Article