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

Anonymous: Dear Sir, is my long investment secure with DKZ investment, Hyderabad as it's not registered with SEBI?

Investing with a firm that is not registered with SEBI poses significant risks to your investment.

SEBI registration ensures that investment firms comply with regulatory standards, investor protection measures, and transparency requirements, which are essential for safeguarding investors' interests.

Here are some considerations regarding investing with a firm not registered with SEBI:

• SEBI Registration: SEBI registration is mandatory for any entity engaged in offering investment-related services, including portfolio management, advisory, and fund management. Lack of SEBI registration raises concerns about the legitimacy and regulatory compliance of the investment firm.
• Investment Protection: Investing with unregistered firms exposes you to higher risks of fraud, mismanagement, and potential loss of capital. Without SEBI oversight, there may be limited recourse in case of investment disputes, fraudulent activities, or financial irregularities.
• Due Diligence: Before investing with any investment firm, conduct thorough due diligence to verify their credentials, track record, regulatory status, and client reviews. Look for reputable firms with established track records, transparent operations, and regulatory compliance.
• Legal Implications: Investing with unregistered investment firms may violate securities laws and regulations, potentially subjecting investors to legal and financial liabilities. Ensure that your investment decisions comply with applicable laws and regulations to avoid legal repercussions.
• Professional Advice: Seek guidance from a certified financial advisor or investment professional who can assess the risks and benefits of investing with any unregistered firm. They can provide personalised recommendations based on your financial goals, risk tolerance, and investment preferences.

In conclusion, investing with an unregistered investment firm carries inherent risks and may not provide adequate investor protection or regulatory oversight.

Prioritise investing with SEBI-registered entities that adhere to regulatory standards and ensure transparency and accountability in their operations.

Always exercise caution and conduct thorough due diligence before entrusting your funds to any investment firm.

Anonymous: I have 60 lakh in EPF (including VPF) and 45 L invested in mutual funds and some 40 L from other sources (like PPF, gratuity, NPS) and am due to retire in 2026.
My advisor is suggesting to withdraw some 30 lakh from EPF and invest in SBI hybrid fund, from which I can withdraw every month post retirement and the funds will also grow at the same time. He shared the report that 50 L invested for 10 years, with a monthly withdrawal of Rs 30,000, the fund has grown to Rs 1.29 crore. Is it advisable to withdraw from EPF and invest in MF, please suggest?

Before making any decisions regarding your investments, it's crucial to carefully evaluate your financial goals, risk tolerance, and investment horizon. Here are some points to consider:

• EPF Withdrawal: Withdrawing a significant portion of your EPF balance may impact your retirement savings. EPF offers a stable and secure avenue for retirement savings with tax benefits. Consider the long-term implications of reducing your EPF corpus, especially if it's a primary source of retirement income.
• SBI Hybrid Fund: While investing in mutual funds like SBI Hybrid Fund can offer potential growth and regular income through systematic withdrawal plans (SWP), it's essential to assess the fund's risk profile, past performance, and suitability for your financial objectives. Hybrid funds typically invest in a mix of equity and debt instruments, providing a balance between growth and stability.
• Financial Advisor's Recommendation: Evaluate your advisor's recommendation in the context of your overall financial plan. Consider seeking a second opinion or conducting thorough research on the suggested investment strategy, including the fund's performance, expense ratio, asset allocation, and withdrawal flexibility.
• Financial Planning: Retirement planning involves assessing your income needs, lifestyle expenses, healthcare costs, and inflationary pressures. Ensure that your investment portfolio aligns with your retirement goals and provides adequate income sustainability throughout your retirement years.
• Risk Management: Diversification is the key to managing investment risk. Consider spreading your investments across different asset classes, such as equity, debt, and fixed income, to mitigate market volatility and enhance portfolio resilience.
• Professional Advice: Consult with a certified financial planner or investment advisor who can conduct a comprehensive financial analysis based on your specific circumstances and provide personalised recommendations tailored to your retirement objectives, risk appetite, and time horizon.
• Ultimately, the decision to withdraw from EPF and invest in mutual funds should be based on a thorough understanding of your financial situation, investment objectives, and risk tolerance. Take your time to evaluate the pros and cons before making any investment decisions, and prioritise long-term financial security in retirement.

NDDEVARAJ: WHAT IS THE AMOUNT THAT SHOULD BE INVESTED IN SIP TO GET 2 CR WITH IN 2 YEARS?

Equity SIP will deliver inflation-beating returns only in the long run (7+ years). 2 years is a short term. You can do SIP only in debt funds, Approximately by investing Rs 7.75 lakh per month at 7% per annum rate of return, you will be able to accumulate Rs 2 crore at the end of 2 years.

Mona: How to find best performing funds? Which website gives correct comparison?

Ask yourself this question: Can a best-performing mutual fund now continue to be a best-performing mutual fund even after a week, after a month, after a quarter, after a year and so on?

Then in that case, do we intend to switch our investments every week or quarter to stick with the best-performing mutual fund of the time?

If it is a SIP investment, we cannot switch to the best-performing mutual fund for every SIP investment.

Is it possible for a cricketer to score a century in each and every match?

The answer to your question is: Don't chase the Best-Performing Mutual Fund!

Regardless of the Mutual Fund scheme, the performance shown is history. Past performance is just a guide to check how well the fund manager did in the past.

Anonymous: Hello Sir, I want to park around 10 lakh in a debt or liquid fund for around 4-6 months, can you please suggest some good funds in which I can invest? I need this money for a down payment of a flat that I am planning to buy in next 4-6 months.

You can invest in ultra short-term and low duration funds. They are suitable for 4-6-month time frame.

• 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.