Money - Rediff Gurus

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Arindam - May 12, 2024Hindi

I am 35 years of age and working in a PSU. I have following savings 1. PPF of amount 26L , contributing 1.5L each year. 2. PF around 10L. 3. NPS around 1L ( just started ). 4. FD around 10L. 5. SIP around 45000 each month having total portfolio of around 32L in MF including SIP and lumpsum. Want to increase SIP gradually to 1L per month in next 7 years . I do not have any type of loans. Pls suggest any adjustment in my savings and portfolio if any.

Ans: It's evident that you've been diligent in your savings and investments, which is commendable. Your portfolio reflects a balanced mix of traditional and market-linked instruments, providing stability and growth potential.

Given your age and financial goals, here are some suggestions to optimize your savings and portfolio:

PPF and PF: With a substantial amount in PPF and PF, you're already on track for long-term savings. Since both these instruments offer tax benefits and stable returns, continue contributing to them regularly to maximize their growth potential.

NPS: It's great that you've initiated investments in the National Pension System (NPS). NPS offers a combination of equity, corporate bonds, and government securities, providing diversification to your portfolio. Consider increasing your contributions gradually to build a robust retirement corpus.

FD: While Fixed Deposits provide safety and guaranteed returns, the interest rates may not always beat inflation, leading to erosion of purchasing power over time. Evaluate whether you can allocate a portion of your FD corpus to more growth-oriented instruments like mutual funds for better returns in the long run.

SIPs: Your SIP investments of ?45,000 per month show a commitment to wealth accumulation through equity mutual funds. Increasing the SIP amount gradually to ?1 lakh per month over the next seven years aligns with your goal of enhancing wealth creation. Ensure that you review and adjust your SIPs periodically based on market conditions and your financial goals.

Portfolio Rebalancing: Regularly review your portfolio to ensure it remains aligned with your risk tolerance and financial objectives. Consider rebalancing your portfolio periodically to maintain the desired asset allocation mix and optimize returns.

Emergency Fund: It's essential to have an emergency fund equivalent to 6-12 months of living expenses in a liquid and easily accessible account. If you haven't already, consider setting aside a portion of your savings for this purpose to handle unforeseen expenses without disrupting your long-term investments.

Overall, your savings and investment approach indicate a disciplined approach towards financial planning. By making gradual adjustments and staying committed to your financial goals, you're well-positioned to achieve financial security and prosperity in the years ahead.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - May 12, 2024Hindi

Sir I am in 24 years old.and I continuing sip 2500 in small cap and 2000 in contrafund .after 10 years what ammount I receive.

Ans: It's wonderful to hear that you're committed to investing at such a young age. Starting early is a commendable move towards securing your financial future.

Your SIP strategy of investing ?2500 in a small-cap fund and ?2000 in a contra fund reflects a balanced approach to wealth accumulation. Small-cap funds typically offer high growth potential, albeit with higher volatility, while contra funds aim to pick undervalued stocks for long-term growth.

Over a decade, your investments could potentially grow significantly due to the power of compounding. However, predicting the exact amount after ten years is challenging due to market fluctuations and fund performance variations.

With small-cap funds, you're positioned to benefit from the growth potential of smaller companies, which can lead to substantial returns over the long term. However, it's important to note that small-cap investments come with higher risk due to their susceptibility to market volatility and economic downturns.

Contra funds, on the other hand, aim to identify stocks that are trading below their intrinsic value, potentially offering higher returns when these stocks revert to their fair value. However, they also carry risk, as the timing of the market's recognition of undervalued stocks can vary.

As a Certified Financial Planner, I advise reviewing your investment strategy periodically to ensure it aligns with your financial goals and risk tolerance. Additionally, diversifying your portfolio beyond just small-cap and contra funds could further mitigate risk and enhance returns.

In conclusion, while it's challenging to predict the exact amount you'll receive after ten years, your disciplined approach to SIP investing sets a strong foundation for building wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Gaurav - Apr 26, 2024Hindi

I am handicapped male with DOB 21/01/1990. I am handicapped from birth due to cerebral palsy. I undergone surgery for recoupment of handicappness. I also suffers from Asthama. Which company can offer health insurance to me?

Ans: I can offer general guidance to help you find health insurance as someone with pre-existing conditions.

In India, several companies offer health insurance plans for individuals with pre-existing conditions like cerebral palsy and asthma. Here are some steps to find suitable coverage:

Research Companies: Consider reputable health insurance companies in India known for offering plans to people with pre-existing conditions. You can search online or consult an insurance broker for recommendations.

Contact Insurance Companies: Reach out to shortlisted companies and inquire about their plans for pre-existing conditions. Ask about coverage details, exclusions, and claim settlement procedures.

Compare Plans: Carefully compare plans from different insurers. Consider factors like coverage details, deductibles, co-pays, network hospitals, and premium costs.

Here are some resources that might be helpful in your research (avoiding mentioning specific companies):

Regulatory Body: Insurance Regulatory and Development Authority of India
Health Insurance Information: General Insurance Council [invalid URL removed]
Additional Tips:

Be upfront about your pre-existing conditions when contacting insurance companies.
Inquire about waiting periods for specific treatments or procedures.
Understand the claim process and required documentation.
Remember, consulting a qualified insurance broker can be helpful, especially when navigating plans with pre-existing conditions. They can assist you in comparing plans, understanding coverage details, and finding the most suitable option for your needs.

For personalized advice tailored to your specific situation, consider consulting with a Certified Financial Planner or tax advisor.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by GURMUKH - Feb 02, 2024Hindi

can co-planner claim tax deduction of health insurance premium of family floater health policy?

Ans: In India, the co-planner can claim a tax deduction for the health insurance premium of a family floater health policy, but with limitations.

The deduction is allowed under Section 80D of the Income Tax Act. This section allows for deductions for the premium paid for health insurance for self, spouse, dependent parents, and dependent children.

Here's a breakdown of who can be covered under the co-planner's deduction:

Self: The co-planner can claim a deduction for the portion of the premium that covers themself.
Spouse: The co-planner can claim a deduction for the portion of the premium that covers their spouse.
Dependent children: The co-planner can claim a deduction for the portion of the premium that covers their dependent children.
However, there is no provision to claim tax deductions for other family members covered under the family floater policy, such as in-laws, grandchildren, or siblings.

For personalized advice tailored to your specific situation, consider consulting with a Certified Financial Planner or tax advisor.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Pavani - Feb 05, 2024Hindi

Hi, iam 40 years old working woman, My husband is a software employee age 42 years. We have a daughter of 7 years old. We like to take good health insurance plan for 3 of us. Can you suggest the best one please?

Ans: It's great that you're considering a health insurance plan to secure your family's well-being. When selecting a health insurance plan, several factors come into play, including coverage, premiums, network hospitals, and additional benefits. Here are some tips to help you choose the best one:

Assess your family's healthcare needs: Consider factors like existing medical conditions, expected healthcare expenses, and any specific requirements related to treatments or procedures.

Comprehensive coverage: Look for a health insurance plan that offers comprehensive coverage for a wide range of medical expenses, including hospitalization, daycare procedures, pre and post-hospitalization expenses, and critical illnesses.

Network hospitals: Check the list of network hospitals associated with the insurance provider to ensure accessibility to quality healthcare facilities in your area.

No claim bonus (NCB) and benefits: Evaluate if the plan offers incentives like no claim bonus for claim-free years, health check-up benefits, and wellness programs to promote preventive healthcare.

Claim settlement ratio: Review the insurer's claim settlement ratio, which reflects their track record of processing and settling claims efficiently.

Affordability: While opting for a comprehensive plan is essential, ensure that the premium fits within your budget and offers value for money in terms of coverage and benefits.

Based on these considerations, you can explore health insurance plans offered by reputed insurers like HDFC ERGO Health, ICICI Lombard, Apollo Munich, or Max Bupa. Compare their features, coverage limits, exclusions, and premiums to select the one that best meets your family's needs.

Before finalizing the plan, read the policy documents carefully, including terms and conditions, exclusions, and claim procedures, to have a clear understanding of what is covered and any limitations.

Additionally, consider consulting with a licensed insurance advisor or Certified Financial Planner to receive personalized recommendations based on your specific requirements and financial situation.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Feb 07, 2024Hindi

I am 48 years old and my monthly income is 1.4 Lac. My existing investment is PPF 1.5 Lakh/year and 18 Thousand Term insurance and Bank FD's. I want to invest in NPS about 50 Thousand/Year. What option to select to earn at least 8% with lower risk. Also let me know what are other options for investment with lower risk?

Ans: Hello Mr. Kumar Shashi Raj,

It's excellent that you're considering diversifying your investments and planning for your future. Given your income and investment goals, let's explore some options:

NPS (National Pension System):

NPS offers different investment options with varying levels of risk and potential returns.
For your objective of earning at least 8% with lower risk, you can consider investing in the "Moderate" or "Conservative" asset allocation options.
These options typically invest a higher proportion of funds in debt instruments, providing stability and lower volatility compared to equity-heavy options.
While NPS offers the potential for attractive returns over the long term, it's essential to understand that past performance is not indicative of future results.
Other options for investment with lower risk:

Debt Mutual Funds: These funds primarily invest in fixed-income securities like bonds and government securities, offering relatively stable returns with lower risk compared to equity investments.
Public Provident Fund (PPF): Since you're already investing in PPF, you can continue to maximize contributions to this tax-efficient instrument, which offers attractive returns along with tax benefits.
Bank Fixed Deposits: FDs provide a fixed rate of interest and are considered low-risk investments. However, they may offer relatively lower returns compared to other investment avenues like mutual funds or NPS.
Government Savings Schemes: Options like Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS) offer fixed returns with capital protection, making them suitable for conservative investors.
When selecting investment options, consider factors like your risk tolerance, investment horizon, and financial goals. Diversifying across asset classes can help mitigate risk and optimize returns over the long term.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Feb 19, 2024Hindi

I am 53 with 1 cr corpus , invested in MF( lump sum - equity and SIP of 85 k month for last 2 years) PPF, NSC, stocks, FD . I have 2 children one is working and the daughter is in 12 would like to pursue medicine . I want to know the following A. How do I plan my finances ahead ? B. My daughters education ? My pension ? C. A medical policy is there for 26 lakhs for a family of 4 . Is that enough or I need to take another policy ? D. What amount should I have to lead a decent and comfortable life . Without depending on kids .( have a house of my own ) Kindly help / advice .

Ans: Hello Mr. Kumar Shashi Raj,

It's great that you're actively planning for your financial future and your children's education. Let's address your concerns step by step:

A. Planning your finances ahead:

With a corpus of 1 crore and diversified investments like MFs, PPF, NSC, stocks, and FDs, you're on the right track.
Consider reviewing your investment portfolio periodically to ensure alignment with your financial goals and risk tolerance.
Continue your SIPs and monitor the performance of your equity investments.
Explore options for retirement planning to secure a steady income post-retirement. You can consider instruments like NPS or annuities for this purpose.
B. Your daughter's education:

Since your daughter aims to pursue medicine, it's crucial to plan for the substantial expenses associated with her education.
Estimate the cost of her medical education and explore education loans, scholarships, or other funding options to supplement your savings.
Consider investing in instruments like mutual funds or fixed deposits specifically earmarked for her education expenses.
C. Medical insurance:

Your existing medical policy covering 26 lakhs for a family of four is a good start.
However, considering rising healthcare costs and the possibility of unforeseen medical emergencies, it's advisable to assess if this coverage is adequate.
Evaluate the premium versus coverage benefits and consider topping up your existing policy or purchasing an additional policy for enhanced coverage.
D. Retirement planning and leading a comfortable life:

Determine your desired post-retirement lifestyle and estimate your retirement expenses, including healthcare, travel, and other essentials.
Calculate the corpus required to generate a steady income stream post-retirement, considering factors like inflation and life expectancy.
Aim to build a retirement corpus that can sustain your lifestyle without relying on your children's financial support.
Maximize contributions to retirement-oriented schemes like NPS or voluntary provident fund to boost your retirement corpus.
Regularly reassess your financial plan and make adjustments as needed to stay on track towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Kumar - Feb 18, 2024Hindi

Hello Sir, I am Kumar Shashi Raj, I made a payment for my Axis bank credit card dues on 31.1.2024 from SBI internet banking, its Last date was 05.02.2024, but payment not reflected in Axis bank credit card dues nor returned to my SBI account till 14th Feb 2024, due to delay I have been charge penalty and interest, and bad effect on my CIBIL score. I raised complains to Axis Bank Credit card department and SBI. but I did not get concrete answer from them. I got a reply from Axis bank saying that UPDATE FROM AGGREGATOR THAT THERE WAS A DOWN TIME ISSUE FROM SBI, due to this the payment has been failed. I just want to know who is responsible Axis Bank or SBI and how to raise complain against them so that penalty, interest, and effect on CIBIL score, mental trauma I have borne. I want justice.

Ans: Hello Mr. Kumar Shashi Raj,

I understand the frustration and inconvenience you've faced due to the delay in your credit card payment reflecting on your Axis Bank account. It's indeed disheartening to experience such issues, especially when you've taken timely action to fulfill your financial obligations.

It's essential to determine accountability in situations like these. While Axis Bank has mentioned a downtime issue from SBI, it's crucial to delve deeper into the matter to ascertain where the responsibility lies. Both institutions play integral roles in the transaction process, and pinpointing the exact cause of the failure is essential to seek redressal.

Your proactive approach in raising complaints with both Axis Bank and SBI is commendable. However, if you haven't received satisfactory responses, you may consider escalating the matter further. You can approach the banking ombudsman, a regulatory body established to address grievances related to banking services. They can investigate the issue impartially and facilitate a resolution.

Meanwhile, to mitigate the adverse impact on your financial standing, you can request Axis Bank to waive off the penalty and interest charges, citing the delayed payment due to technical issues beyond your control. Additionally, you may inquire about any measures they can take to rectify the effect on your CIBIL score.

Remember to keep documentation of all communication and transactions related to this issue for future reference.

Stay resilient throughout this process. Justice may take time, but your persistence can lead to a favorable outcome.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Feb 20, 2024Hindi

Hello Sir, I am 46 Y Old , and I lost my Job . I have 2 kids . One require money from 2024-2028 ( 6L per annum) other kid require money from 2028-2032. I saved and keep aside 60 L for their education . I have today 71 L of EPF . My wife earn 50 K per month which is sufficent for us to run the home and some money put in health insurance and term insurance. I will reinvest any interest earn from these two invest ments ( 60 L and 71 L). 60 L Break Up is 14.5 L Mumtual fund , 25L PPF maturing in 2026, 10 L Government Bond maturing in 2024 3.4 L NSC maturing in 2032, 2.3L gold bond, 2 L Shares, 4 L FD. Please let me know can I have retirement life with 70 K from interests earning if i do not get job.

Ans: It's understandable that you're concerned about your financial security after losing your job, especially with two children's education expenses to consider. Let's assess your current financial situation and retirement prospects:

Education Fund:

With 60 lakhs set aside for your children's education, you have a significant portion of their expenses covered. Ensure that these funds are invested appropriately to generate returns that align with the time horizon of their education needs.
EPF and Other Investments:

Your EPF corpus of 71 lakhs, along with your other investments in mutual funds, PPF, government bonds, NSC, gold bonds, shares, and FDs, forms a substantial part of your financial assets.
Review the performance and asset allocation of these investments to ensure they are diversified and positioned to provide growth and stability over the long term.
Retirement Planning:

With a monthly interest income target of 70,000 rupees, you'll need to calculate the rate of return required on your investments to achieve this goal. Given the current interest rate environment, it may be challenging to generate such high returns without taking on significant risk.
Consider consulting with a financial advisor to assess your risk tolerance, investment options, and retirement goals. They can help you develop a personalized retirement plan that balances risk and return effectively.
Contingency Planning:

While your wife's income covers household expenses, it's essential to have a contingency plan in case of unexpected expenses or emergencies. Maintain an emergency fund equivalent to 6-12 months' worth of living expenses to provide financial stability during challenging times.
Reassessing Retirement Income:

Depending solely on interest income from your investments for retirement may not be sufficient, especially considering inflation and rising living costs. Explore additional income streams or part-time work opportunities to supplement your retirement income.
In conclusion, while your current investments provide a solid foundation, achieving your retirement income target solely through interest earnings may require a review of your investment strategy and retirement goals. Consider seeking professional financial advice to optimize your portfolio and plan for a secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Satish - Feb 23, 2024Hindi

Hello Sir, I have taken a home loan from HDFC. Now only 27 EMI are to be paid. My current rate of interest is 8.55%. Yesterday, I received an email from HDFC saying that I can opt for a fixed rate of interest for the remaining tenure. They have not given that fixed rate of interest in the email. My question is that should I opt for the offer? Can you please suggest if it would be beneficial for me or not? Thanks in advance for your advice. - Satish

Ans: Hello Satish,

It's great that you're considering your options regarding your home loan. Opting for a fixed interest rate can provide stability and predictability to your monthly payments, but it's essential to evaluate whether it's the right choice for you. Here are some factors to consider:

Fixed vs. Floating Rate: Compare the current floating rate of interest (8.55%) with the fixed rate offered by HDFC. If the fixed rate is lower than your current floating rate, it could potentially save you money over the remaining tenure of your loan.

Future Interest Rate Trends: Assess the prevailing economic conditions and interest rate outlook. If there's a possibility of interest rates rising in the future, locking in a fixed rate now could protect you from potential increases in your monthly payments.

Your Financial Situation: Consider your financial stability and ability to afford potential fluctuations in your monthly payments. Fixed-rate loans offer certainty, but they may have slightly higher initial EMIs compared to floating-rate loans.

Loan Duration: Since you have only 27 EMIs remaining, the impact of interest rate fluctuations may be limited. Evaluate whether the potential savings from switching to a fixed rate justify any associated costs or changes in your monthly budget.

Terms and Conditions: Review the terms and conditions of the fixed-rate offer carefully. Understand any associated fees, penalties, or restrictions that may apply.

Ultimately, the decision to opt for a fixed interest rate depends on your individual preferences, risk tolerance, and financial goals. If you prioritize stability and prefer knowing exactly what your monthly payments will be, opting for a fixed rate may offer peace of mind.

Before making a decision, I recommend reaching out to HDFC to request the specific fixed interest rate offered and to clarify any doubts or concerns you may have. Additionally, consider consulting with a financial advisor or mortgage expert who can provide personalized advice based on your situation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 07, 2024Hindi

Hello I am 47 y old . I have been layoffs. When I try to combine my assets by selling . I have approx 1.9 Cr as a cash . Is this amount is ok for my retirement . I require my dau education 6L per year in 2024 -2028 and son education 6L per year from 2028-2032. For household my wife salary is enough . Please suggest how to invest and reach all the education and retirement goals. I am expecting 1 L per month from 1.9 Cr and this 1 L I will invest 60 thousand. Please suggest this is ok .

Ans: It's commendable that you're proactively planning for your retirement and your children's education despite facing a layoff. Let's devise a financial plan to ensure your goals are met:

Retirement Planning:

With 1.9 Cr in cash, generating 1 Lakh per month for your retirement seems feasible. Investing a portion of this amount in stable income-generating avenues like fixed deposits, debt mutual funds, and Senior Citizen Savings Scheme can provide regular income to meet your expenses.
Since your wife's salary covers household expenses, you can focus on building a retirement corpus that ensures a comfortable lifestyle for both of you.
Consider diversifying your investments across asset classes like equity, debt, and real estate to balance risk and potential returns over the long term.
Education Planning:

Allocate funds separately for your children's education expenses. With annual education expenses of 6 lakhs for each child, you can set aside a portion of your cash reserve or invest in education-specific investment vehicles like education savings plans or SIPs in mutual funds.
For the education expenses starting in 2024 for your daughter and in 2028 for your son, consider investing in a combination of debt and equity funds to ensure growth while preserving capital for their future education needs.
Monthly Income and Investment:

Planning to invest 60,000 out of the 1 Lakh monthly income is a prudent approach to continue building wealth and meeting your financial goals.
Allocate these investments based on your risk tolerance, investment horizon, and financial goals. Consider consulting with a Certified Financial Planner to devise a customized investment strategy aligned with your objectives.
Review and Adjust:

Regularly review your financial plan and investment portfolio to ensure they remain aligned with your evolving needs and goals.
Adjust your investment strategy as needed based on changes in market conditions, life events, and personal circumstances.
By following a disciplined approach to investing and financial planning, you can achieve your retirement and education goals while safeguarding your financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Matta - Mar 11, 2024Hindi

I AM AGE OF 73, WE ARE NOT HAVING MADICAL {Health) INSURANCE POLICY, at present we are propose get any madical health insurance coverage ANY POLICY IS AVAILABEL

Ans: At the age of 73, it's still possible to obtain medical health insurance coverage, although it may come with certain limitations and higher premiums due to your age. Here are some options you can explore:

Senior Citizen Health Insurance Policies: Many insurance companies offer specialized health insurance plans specifically designed for senior citizens. These policies typically provide coverage for hospitalization expenses, pre-existing diseases, and other medical expenses incurred due to illnesses or accidents. While premiums may be higher compared to regular health insurance plans, senior citizen policies offer comprehensive coverage tailored to the healthcare needs of older individuals.

Government Health Insurance Schemes: Some government-sponsored health insurance schemes cater to senior citizens and provide affordable healthcare coverage. For example, in India, schemes like the Pradhan Mantri Jan Arogya Yojana (PMJAY) or state-specific health insurance schemes may offer coverage for hospitalization expenses and treatment for certain illnesses.

Group Health Insurance: If you have any affiliation with professional or social organizations, you may be eligible to join group health insurance schemes offered by these organizations. Group insurance plans often provide coverage at a lower cost compared to individual policies and may have less stringent eligibility criteria.

Family Floater Plans: If you have family members who are younger and in good health, consider opting for a family floater health insurance plan that covers you along with your family members. Family floater plans offer shared coverage for the entire family at a relatively lower premium compared to individual policies.

Pre-existing Disease Coverage: Since you may have pre-existing medical conditions at the age of 73, it's essential to choose a health insurance policy that offers coverage for pre-existing diseases. Look for policies that provide coverage for pre-existing conditions after a waiting period, as this can help manage your healthcare expenses effectively.

Before purchasing a health insurance policy, carefully review the coverage features, exclusions, waiting periods, premium costs, and claim settlement process. Consider consulting with an insurance advisor or agent who can help you compare different policies and choose the one that best suits your healthcare needs and budget.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 19, 2024Hindi

Hi, I have recently left an MNC Organisation after completing the PMS cycle and sucessful completion of employee PMS. My CTC consists of 2.8 Lacs of PMS linked Bonus and company denies that they will be paying only to the people who are with them till the payout time(April) without resignation. Like wise there are many who's bonuses are not paid even after 15 yrs of services. Is there any way I can claim legally.

Ans: It's disappointing to hear about your situation regarding the denial of PMS-linked bonuses after completing the PMS cycle and successfully meeting the performance criteria. While I can offer some general guidance, it's essential to consult with a legal expert specializing in employment law for personalized advice tailored to your specific circumstances. Here are some steps you can consider:

Review Employment Contract: Begin by reviewing your employment contract, offer letter, and any relevant company policies or documents related to the PMS-linked bonus. Pay close attention to the terms and conditions regarding eligibility criteria, payout timing, and any clauses related to bonus forfeiture upon resignation.

Seek Clarification: If you haven't already done so, consider reaching out to your former employer or HR department to seek clarification on the reasons for withholding the bonus. Request documentation or specific explanations regarding their decision.

Document Everything: Keep records of all communications, including emails, letters, or conversations with your employer or HR department regarding the bonus payment. Documentation will be essential if you decide to pursue legal action.

Consult Legal Expert: Consider consulting with an employment lawyer who can assess your case, review relevant documents, and provide expert advice on your legal rights and options. They can advise you on whether you have a valid claim and the best course of action to pursue.

Explore Dispute Resolution Options: Depending on the circumstances and applicable laws, you may have options for dispute resolution outside of litigation, such as mediation or arbitration. An employment lawyer can guide you through these processes and help negotiate a resolution with your former employer.

Evaluate Legal Remedies: If your efforts to resolve the issue amicably are unsuccessful, your lawyer can advise you on potential legal remedies, including filing a lawsuit for breach of contract or other legal claims, seeking damages, or pursuing other forms of relief available under employment law.

Remember that legal processes can be complex and time-consuming, so it's essential to weigh the potential costs, risks, and benefits before proceeding. Consulting with a legal expert will help you understand your rights and options and make informed decisions about how to proceed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 12, 2024Hindi

iam holding a health insurance policy from bajaj for 15 lakhs. iam told that one has to disclose ailments if any, while taking policy. i was suffering from high bp when i took policy, but do not remember whether the same had been dic sclosed or not at the time of taking policy. the policy is more than 3 years old, and no claim has been made under this. will in the future my claim for any heart related ailements that i might suffer , gets rejecte by company on grounds that bp was not disclosed while taking policy. 12.03.2024

Ans: It's essential to be transparent about pre-existing conditions like high blood pressure (BP) when applying for a health insurance policy. While I can't provide a definitive answer without reviewing your policy documents and the specific terms and conditions, here's some guidance:

Review Policy Documents: Take some time to carefully review your health insurance policy documents. Look for any clauses related to non-disclosure of pre-existing conditions at the time of policy issuance.

Contact the Insurer: If you're unsure whether you disclosed your high BP when taking the policy, consider reaching out to the insurance company directly. They can provide clarity on the information provided during the application process.

Grace Period: Since your policy is more than 3 years old and you haven't made any claims, it's possible that any non-disclosure issues may be considered lapsed due to the grace period typically provided by insurers.

Future Claims: In the event that you develop heart-related ailments in the future, the insurance company may investigate whether the non-disclosure of high BP was intentional or unintentional. If it's determined that the non-disclosure didn't affect the underwriting decision or the terms of the policy, your claim may still be honored.

Seek Professional Advice: If you're concerned about the potential impact of non-disclosure on future claims, consider consulting with a legal or insurance expert who can provide personalized guidance based on your specific situation and policy terms.

Ultimately, it's crucial to maintain transparency with your insurer and ensure that all relevant information, including pre-existing conditions, is disclosed at the time of policy application to avoid any complications during claim processing.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Sahil - Mar 20, 2024Hindi

Sir i left my previous company on 19 nov and joined new company of 27 nov now in epfo i have updated the exit date of previous organisation please tell me steps so i can withdraw the whole amount

Ans: To withdraw the entire EPF amount after leaving your previous company, follow these steps:

Login to the Unified Member Portal of EPFO using your UAN (Universal Account Number) and password.

Once logged in, navigate to the 'Online Services' tab and select 'Claim (Form-31, 19 & 10C)' from the dropdown menu.

Verify your bank account details linked with your UAN. Ensure that your Aadhaar details are also seeded with your UAN for authentication.

Next, select the claim you wish to file. Since you left your previous company, you'll need to select 'Form 19 - EPF Final Settlement.'

Fill in the required details such as your personal information, previous employer details, and reason for leaving.

Enter your bank account details where you want the EPF amount to be credited.

Upload any necessary documents such as a cancelled cheque, if required.

Review the details entered and submit the claim.

Once submitted, your claim will be forwarded to your previous employer for verification.

After verification by your previous employer, the EPFO will process your claim and credit the EPF amount to your bank account.

Remember, it may take some time for the claim to be processed, so keep an eye on the status through the EPFO portal. If you face any issues during the process, you can reach out to the EPFO helpline for assistance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 13, 2024Hindi

I AM 40 RIGHT NOW, SUPPOSE I GET 1 CRORE (GIFT FROM DAD) FROM THE SALE OF PROPERTY. HOW CAN I SAVE MAXIMUM ON TAX ON 1 CRORE IF I PUT IT IN FD. SUPPOSE I HAVE 5 BANK ACCOUNTS ( 3 IN MY NAME AND 2 IN WIFES NAME) AND DEPOSIT EQUALLY. HOW MUCH TAX I HAVE TO PAY ON THE INTERST EARNED. SUPPOSE IF I DONT WORK CAN I CLAIM IN IT RETURNS IF I DONT HAVE ANY OTHER SOURCE OF INCOME OTHER THAN FD INTEREST...? ALSO IF I RETIRE NOW AND DONT WORK. CAN I SUSTAIN, IF MY PERSONAL EXPENSE WOULD BE AROUND 20000 / MONTH FOR REST OF LIFE (LIFE EXPECTANCY TILL 75-80 YEARS) AND ENJOY THE INTEREST EARNED THROUGH FD AND DEPOSITING THE REST IN MF AND OTHER INVESTMENTS... I ONLY HAVE 1 CHILD...(3.5 YEARS AGE)

Ans: Given your scenario, let's address each aspect step by step:

Maximizing Tax Efficiency on FD Interest:

If you deposit 1 crore equally into 5 bank accounts, the interest earned on each account would be considered separately for tax calculation.
Under the current tax laws in India, interest income from FDs is taxable as per your applicable income tax slab.
For the financial year 2023-24, if you are below 60 years old, the tax slabs are:
Up to 2.5 lakhs: No tax
2.5 - 5 lakhs: 5%
5 - 10 lakhs: 20%
Above 10 lakhs: 30%
Considering your personal expenses of 20,000 per month, or 2.4 lakhs per year, your total income from FD interest could be around 10 lakhs per year (assuming an interest rate of 6-7%).
With no other sources of income, your tax liability on the FD interest would depend on the applicable tax slab.
Claiming Tax Deductions without Working:

Even if you don't have any active income from employment, you can still claim certain tax deductions under various sections of the Income Tax Act, such as:
Section 80C for investments in instruments like PPF, EPF, life insurance premiums, etc.
Section 80D for health insurance premiums.
Section 80TTA for interest earned on savings accounts.
However, deductions under these sections may not fully offset the tax liability on FD interest income.
Retirement Planning:

With 1 crore invested in FDs and assuming a conservative interest rate, you may earn around 6-7 lakhs annually.
If your annual expenses are around 2.4 lakhs, you'll have a surplus for investments in mutual funds and other avenues.
Considering your life expectancy till 75-80 years, it's essential to ensure your investments generate sufficient returns to maintain your lifestyle and cover potential medical expenses.
Diversifying your investments across equity mutual funds, debt funds, and other avenues can help mitigate risks and achieve long-term growth.
In conclusion, while FDs offer stability and guaranteed returns, it's crucial to optimize tax efficiency and explore other investment avenues to sustain your retirement lifestyle and achieve long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 23, 2024Hindi

Please suggest me which equity PMS, is suitable for me, I can wait upto a period of 6 years. You are requested to suggest fund house name as well the particulsr scheme name.

Ans: Given your investment horizon of up to 6 years and considering your risk profile, I would recommend exploring mutual funds over Portfolio Management Services (PMS) for several reasons:

Diversification: Mutual funds offer greater diversification by pooling investments from multiple investors and investing across a wide range of securities. This diversification helps mitigate individual stock-specific risks compared to PMS, where the portfolio is typically concentrated with fewer stocks.

Accessibility: Mutual funds are accessible to a broader range of investors with lower investment thresholds compared to PMS, which often require higher minimum investment amounts.

Professional Management: Mutual funds are managed by experienced fund managers who actively research and monitor the market to make investment decisions. This professional management can potentially lead to better risk-adjusted returns compared to individual stock picking in PMS.

Transparency and Regulation: Mutual funds are regulated by SEBI (Securities and Exchange Board of India) and are required to disclose their portfolio holdings regularly. This transparency provides investors with visibility into where their money is invested and ensures adherence to regulatory guidelines.

By opting for mutual funds, you can benefit from professional management, diversification, accessibility, and regulatory oversight, ultimately aligning with your investment goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 13, 2024Hindi

Hi Sir , I plan to invest in the following funds for 2 years through SIP from April 24. Investment holding time frame is 15 years. Nipon India Small Cap (10K); HDFC Small Cap (10K); HDFC Mid Cap Opportunities Fund (7.5K); Motilal Oswal Nifty Mid Cap 150 Index Fund (7.5K); Mirae Assets Large & Mid Cap (5K); ICICI Pru Value Discovery (10K). All funds selected are of Growth option and Direct investment option. Requesting your expert comments in the fund selection/ amount allocation. Thanks in advance.

Ans: Your investment plan demonstrates a thoughtful approach to diversification across different market segments and fund categories. Let's evaluate your fund selection and amount allocation:

Nippon India Small Cap: Small-cap funds like Nippon India Small Cap have the potential for high growth but come with higher volatility. Considering your long-term investment horizon of 15 years, allocating 10K to this fund can be beneficial for capital appreciation over time.

HDFC Small Cap: Similar to Nippon India Small Cap, HDFC Small Cap focuses on small-cap stocks. Investing 10K in this fund further diversifies your portfolio within the small-cap segment, enhancing growth potential.

HDFC Mid Cap Opportunities Fund: Mid-cap funds like HDFC Mid Cap Opportunities Fund offer exposure to mid-sized companies with growth potential. Allocating 7.5K to this fund complements your small-cap investments and provides diversification across market segments.

Motilal Oswal Nifty Mid Cap 150 Index Fund: Index funds like Motilal Oswal Nifty Mid Cap 150 Index Fund aim to replicate the performance of the Nifty Midcap 150 Index. With 7.5K allocated to this fund, you gain exposure to mid-cap stocks with lower expense ratios compared to actively managed funds.

Mirae Asset Large & Mid Cap: Investing 5K in Mirae Asset Large & Mid Cap Fund provides exposure to both large and mid-cap stocks, offering a balanced approach to growth and stability within the portfolio.

ICICI Pru Value Discovery: Value-oriented funds like ICICI Pru Value Discovery focus on undervalued stocks with the potential for long-term growth. Allocating 10K to this fund adds a value-oriented perspective to your portfolio, complementing growth-oriented funds.

Overall, your fund selection covers a wide spectrum of market segments, including small-cap, mid-cap, large & mid-cap, and value-oriented funds, which enhances diversification and potential returns over the long term.

However, since your investment horizon is 15 years, you might consider increasing exposure to equity funds for higher growth potential, considering your risk tolerance and financial goals.

Before finalizing your investment plan, I recommend consulting with a Certified Financial Planner to ensure alignment with your financial objectives and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Ravi - Mar 23, 2024Hindi

Sir. This is Ravi kumar. My 1.5 lack FD will be closed in the next. Instead of FD where i can invest without risk with no locking period. Please suggest. Thank you

Ans: Hello Ravi Kumar! It's great that you're exploring alternative investment options beyond fixed deposits (FDs). Let's consider some alternatives that offer safety, liquidity, and potentially higher returns without a locking period:

Liquid Mutual Funds: Liquid mutual funds invest in short-term money market instruments, offering stability and easy liquidity. They typically provide slightly higher returns compared to FDs while maintaining low risk. You can redeem your investment anytime without any penalty.

Savings Account with High Interest: Some banks offer savings accounts with higher interest rates compared to traditional savings accounts. Look for banks offering attractive interest rates and features like no minimum balance requirement and unlimited withdrawals.

Short-term Debt Mutual Funds: Short-term debt mutual funds invest in fixed income securities with shorter maturities, providing stability and moderate returns. These funds offer flexibility with no lock-in period and allow you to redeem your investment at any time.

Flexi Deposit or Sweep-in Accounts: Some banks offer flexi deposit or sweep-in accounts where you can link your savings account with a fixed deposit. Any excess funds above a specified threshold in your savings account automatically get transferred to a fixed deposit, earning higher interest. This option offers liquidity while maximizing returns.

Ultra Short Duration Mutual Funds: Ultra short duration mutual funds invest in fixed income securities with short to medium-term durations, offering slightly higher returns compared to liquid funds. These funds maintain low interest rate risk and provide liquidity with no exit load.

Before making any investment decision, assess your risk tolerance, investment horizon, and liquidity needs. It's crucial to diversify your investments across different asset classes for better risk management.

Consider consulting with a Certified Financial Planner who can evaluate your financial situation and goals and recommend suitable investment options tailored to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Sandeep - Mar 17, 2024Hindi

Hi sir, I am planning for a vacation during dec 2025 - Jan 2026. I am planning to save Rs.3000 every month in HDFC long term dept fund. Is my choice of fund is correct? Please guide me to achieve the goal.

Ans: Planning ahead for your vacation in Dec 2025 - Jan 2026 shows great foresight and financial discipline. Let's review your choice of investing in HDFC Long Term Debt Fund to achieve your goal:

HDFC Long Term Debt Fund:

As a debt fund, HDFC Long Term Debt Fund primarily invests in a diversified portfolio of fixed income securities with longer maturity periods.
Debt funds like HDFC Long Term Debt Fund typically offer stability and steady returns over the long term, making them suitable for goals with a medium to long-term horizon.
Given your timeline of around 4-5 years until your vacation, investing in a debt fund can help preserve capital while providing modest growth through interest income.
To achieve your goal effectively, here's a simple plan:

Start by setting up a systematic investment plan (SIP) in HDFC Long Term Debt Fund with a monthly contribution of Rs. 3000.
Regularly monitor the performance of the fund and stay updated on any changes in market conditions or interest rate movements.
Consider increasing your monthly contribution if possible to accelerate your savings towards your vacation goal.
As your vacation date approaches, gradually shift your investments to more liquid assets to ensure easy access to funds when needed.
Additionally, maintain a separate travel fund or savings account to cover any unforeseen expenses or fluctuations in travel costs.

Remember to review your financial plan periodically and adjust your investment strategy as needed to stay on track towards achieving your vacation goal.

If you need further assistance or guidance in managing your investments, consider consulting with a Certified Financial Planner who can provide personalized advice tailored to your specific financial goals and circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money1

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 18, 2024Hindi

Should one redeem MF corpus of 25lakhs to buy property or take plot loan or loan against property at 9% interest for five years?

Ans: Deciding whether to redeem your mutual fund (MF) corpus of 25 lakhs to purchase property or opt for a loan against property (LAP) or plot loan involves careful consideration of various factors. Let's evaluate your options to make an informed decision:

Redeeming MF corpus:

Redeeming your MF corpus can provide immediate liquidity to fund the property purchase without incurring debt.
However, it's essential to assess the potential tax implications, including capital gains tax, associated with redeeming MF units.
Consider the impact of withdrawing from your investment portfolio on your long-term financial goals and investment strategy.
Opting for loan against property or plot loan:

Taking a loan against property or plot loan allows you to retain your MF investments while leveraging your property as collateral to access funds.
The interest rate of 9% for a loan against property is competitive, but it's crucial to factor in the total interest cost over the loan tenure.
Evaluate your repayment capacity to ensure you can comfortably manage the loan EMIs without straining your finances.
Consider the loan tenure, as opting for a longer tenure may result in lower EMIs but higher overall interest payments.
Ultimately, the decision depends on your financial situation, risk tolerance, and long-term goals. If you prefer to maintain your MF investments and have a stable income to support loan repayments, opting for a loan against property or plot loan could be a viable option. However, if you prioritize debt-free property ownership and are willing to forgo potential investment returns, redeeming MF units may be suitable.

Before making a decision, consult with a Certified Financial Planner to assess the impact on your overall financial plan and ensure it aligns with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Edwin - May 12, 2024Hindi

My father has been working in central government for the past 60 years and he is retiring this may 31st. He will be receiving a corpus amount of 2crores. My mother is a house wife and I am joining MBA this year and the fees is 20Lakhs. Our monthly expenses would not exceed 50,000/-. Requesting the gurus to help me out how to disperse the corpus amount into different financial tools to have good retirement life. Please do let me know if we could connect as-well.

Ans: Congratulations on your father's retirement! It's a significant milestone, and it's wonderful that you're considering your family's financial future. Let's craft a plan to make the most of the corpus amount while ensuring a comfortable retirement for your parents and supporting your MBA journey.

Firstly, it's commendable that you have a clear understanding of your family's financial needs and goals. With a monthly expense of 50,000/-, we can create a sustainable plan for the corpus amount.

Given your father's retirement, preserving capital and generating steady income are paramount. We'll aim for a balanced approach, combining safety and growth potential.

A portion of the corpus can be allocated towards fixed deposits or debt mutual funds for stability and liquidity. This ensures a steady stream of income to cover monthly expenses and emergencies.

For long-term growth and beating inflation, a significant portion can be invested in a diversified portfolio of mutual funds managed by experienced fund managers. Regular funds, facilitated through a Certified Financial Planner, offer personalized guidance and active management to maximize returns.

Considering your mother's role as a homemaker and your upcoming MBA expenses, it's crucial to allocate a portion for contingencies and education expenses.

Diversification across asset classes like equity, debt, and possibly gold can mitigate risks and optimize returns over the long term.

Regular review of the portfolio and adjustments based on changing market conditions and life events is essential to ensure the plan remains aligned with your family's goals.

Remember, financial planning is a dynamic process, and staying informed and adaptable is key to success.

I'm here to provide ongoing support and guidance throughout your financial journey. Feel free to reach out for any assistance or clarification.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 23, 2024Hindi

Hello Gurus. I am 45 years old and working in a private firm. I plan to retire in about 15 years. I have adequate amount of savings in PPF, EPF, FDs and some Mutual Funds. Can you suggest what amount i need to invest monthly/yearly in a good SWP, for a withdrawal of say Rs 60,000 a month after 15 years.

Ans: It's commendable that you're planning ahead for your retirement. Let's calculate the amount you need to invest regularly in a Systematic Withdrawal Plan (SWP) to achieve your goal of withdrawing Rs 60,000 per month after 15 years.

Firstly, we need to determine the future value of your monthly withdrawals. Using a retirement calculator or financial planning software, we can estimate the corpus required to sustain a monthly withdrawal of Rs 60,000 for your desired retirement period, accounting for inflation and potential investment returns.

Once we have the estimated corpus needed, we can work backward to determine the required monthly/yearly investment in a suitable investment vehicle with growth potential, such as equity mutual funds or a balanced portfolio, to accumulate that corpus over the remaining 15 years.

Given your existing savings in PPF, EPF, FDs, and Mutual Funds, we'll consider integrating the SWP strategy with your overall portfolio to optimize returns and manage risk effectively.

It's crucial to review and adjust your investment strategy periodically to adapt to changing market conditions, financial goals, and risk tolerance.

Consulting with a Certified Financial Planner will provide personalized insights and recommendations tailored to your specific circumstances, ensuring a robust retirement plan aligned with your aspirations and financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Suraj - Apr 14, 2024Hindi

Like sukanya samridhi yojna for girl Any boy scheme like that with guarented income is there ? Kindly reply What is the best way to invest in gold as gold rates have already been increased. When and how to invest in gold. Best insurance policy for me of age 36 till my retirement.

Ans: It's great that you're exploring investment options for your child's future and seeking ways to secure your own financial well-being. Let's address each of your queries:

For your son's future, there isn't a scheme exactly like Sukanya Samriddhi Yojana, which is specific to girls. However, you can explore various government-backed savings schemes or investment plans that offer guaranteed returns. These may include schemes like Public Provident Fund (PPF) or fixed deposits. Consult a Certified Financial Planner to find the best fit for your needs and goals.

As for investing in gold, it's true that gold rates have been on the rise. While timing the market perfectly is challenging, you can still invest systematically over time through methods like gold ETFs (Exchange-Traded Funds) or gold savings funds. These allow you to invest in gold without physically owning it, offering liquidity and convenience. Regular investment, regardless of current rates, can help mitigate the risk of market volatility.

When considering insurance, it's important to assess your needs and priorities. At 36, you may opt for a term insurance plan that provides coverage until your retirement age. Term plans offer high coverage at affordable premiums, ensuring financial protection for your family in case of unfortunate events. Look for plans with riders like critical illness or accidental death benefit for comprehensive coverage.

Remember to review your insurance needs periodically to ensure they align with your changing circumstances.

Investing and securing your future require careful planning and informed decisions. Consult a Certified Financial Planner to tailor strategies that suit your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 20, 2024Hindi

Hello Sir, I am 36 yrs old IT professional, earned good amount of money from my jobs at different companies but I have lost everything in the stock market while doing options trading. I have stopped the stock market options trading now, please guide how can I start saving and investing to get good returns for my kids education. Currently no savings and no investments.

Ans: I'm truly sorry to hear about your difficult experience with the stock market. It's not easy, but you've taken a positive step by seeking guidance on how to rebuild your financial future.

Firstly, I want to commend you for recognizing the need for change and halting your options trading. It takes courage to reassess and pivot, especially after setbacks.

Now, let's focus on rebuilding. Since you're starting from scratch, it's crucial to prioritize savings. Begin by setting up an emergency fund to cover unexpected expenses. Aim for at least six months' worth of living expenses.

Once your emergency fund is established, it's time to think about investing for your kids' education. Given your past experience, cautious investing is key. Consider diversified mutual funds managed by professionals. These funds spread your investment across various assets, reducing risk.

Regular funds, managed through a Certified Financial Planner, offer personalized guidance and oversight, helping you navigate the complexities of the market.

While index funds may seem appealing for their low fees, they lack the active management that can help mitigate risks and seize opportunities in volatile markets.

Remember, investing is a long-term commitment. Stay patient and disciplined, and avoid the temptation of get-rich-quick schemes.

You've already demonstrated resilience by seeking advice. With careful planning and prudent investing, you can rebuild your financial stability and secure your children's future education.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 14, 2024Hindi

Hi I am 42 currently I did SIP of 20k from last 3 years each 1. ELSS each 1k are 1.Axis long term equity 2.mirai asset 3.canara robeco 3.invesco India 4.parag parikh 2.Midcap funds - White Ock 1k 2.Invesco India multi cap fund 1k 3. Thematic fund - 1 Franklin India apportunity fund 5k 4. Multi asset allocation fund - Tata multi asset opp fund 5k 5. Flexi cap fund - 1.kotak multi asset allocator 1k 2.HDFC flexi cap fund 1k 6. Dynamic Asset allocator - Edelweiss balanced Adv 1k 7. Large & Mid cap - Axis growth apportunity fund 1k 8. Small cap fund - Nippon India 1k Suggest me I want invest another 5k

Ans: It's great to see your diversified investment approach through SIPs across various mutual fund categories. Considering your existing portfolio, here's a suggestion for investing an additional 5k:

Given your current allocation, you might want to consider adding to a category where you have relatively lower exposure. Since you already have investments in ELSS, Midcap, Thematic, Multi-Asset Allocation, Flexi Cap, Dynamic Asset Allocator, Large & Mid Cap, and Small Cap funds, you may consider adding to a fund category that complements your existing holdings.

Considering your investment style and the current market scenario, you might want to explore investing in a Balanced Advantage Fund or a Hybrid Equity-Oriented Fund. These funds dynamically allocate between equity and debt instruments based on market conditions, providing a balance of growth potential and downside protection.

Here's a suggested addition to your portfolio:

Balanced Advantage Fund: Invest the additional 5k in a reputable Balanced Advantage Fund that has a proven track record of managing market volatility and delivering consistent returns over the long term.
Ensure you research and select a fund that aligns with your risk tolerance, investment goals, and overall portfolio strategy. Additionally, regularly review your portfolio's performance and make adjustments as necessary to stay on track with your financial objectives.

Always remember to consult with a certified financial planner or investment advisor before making any significant changes to your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 16, 2024Hindi

I’m 31, I’ve been investing in MF SIPs for about 8-9 years now, but about a year ago I had to encash all my funds to purchase a flat. I started again and currently I do about 29k monthly, investing in Parag Parikh flexi cap, Mahindra Manu life small cap, Tata small cap, Tata digital India fund, PGIM India mid cap opportunities, Canara Robeco small cap, Mirae asset large cap, Axis mid cap and Quant small cap. The exposure to small cap is less than 30%. I have a 10% increment set on all SIPs annually. How long would it take for me to reach a crore? Would I be able to retire by 45 if I stay invested? I have a home loan as well and I pay ~70k EMI on that

Ans: It's commendable that you've been investing consistently in mutual fund SIPs despite facing financial challenges. Let's analyze your current investment scenario and address your financial goals:

Investment Portfolio: Your portfolio consists of a mix of large-cap, mid-cap, and small-cap funds, providing diversification across market segments. Ensure you monitor the performance of each fund regularly and rebalance if needed to maintain your desired asset allocation.

Financial Goal: Your primary goal is to accumulate one crore rupees and potentially retire by the age of 45. Achieving this goal depends on various factors such as your current investment amount, expected rate of return, and investment horizon.

Calculating the Time Required: To estimate the time required to reach one crore rupees, we need to consider your current investment amount, expected rate of return, and the annual increment in your SIPs. With an annual SIP of 29,000 rupees and assuming an average annual return of 12%, you can use online SIP calculators to determine the time required to reach your goal.

Retirement Planning: Retiring by the age of 45 requires careful financial planning and discipline. Consider factors such as your desired retirement lifestyle, expected expenses, inflation, and other income sources. It's crucial to build a sizable retirement corpus to sustain yourself post-retirement.

Home Loan: While paying a substantial EMI towards your home loan, ensure you strike a balance between loan repayment and long-term investments. Evaluate whether prepaying the loan or investing in mutual funds yields better returns based on interest rates and tax implications.

Risk Management: While equity investments offer growth potential, they also carry market risk. Given your age and long investment horizon, you can afford to allocate a significant portion of your portfolio to equities. However, ensure you have an adequate emergency fund and appropriate insurance coverage to mitigate financial risks.

Review and Adjust: Periodically review your investment portfolio, financial goals, and progress towards achieving them. Adjust your investment strategy as needed based on changes in your personal circumstances, market conditions, and financial goals.

It's advisable to consult with a certified financial planner to create a comprehensive financial plan tailored to your specific needs and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 08, 2024Hindi

Hello Sir, first of all thanks for sharing your valuable inputs in this column. My age is 42 & i am currently investing in 4 funds through SIP of Rs.5000 each. UTI Nifty 50 index, Parag Parikh Flexi cap fund, ICICI Prudential Midcap 150 index fund & Quant flexi cap fund. Apart from this i have some small investments in FD's, shares & SGB's (30% each & 10% emergency fund). My plan is to invest for next 3 years through regular SIP & additionally by some more units on dips. After 3 years i will stop SIP ( as i might loose job by 45) & keep the accumulated funds as it is for next 8 years. Please share views on this, if funds are alright considering my age, duration etc. or you can suggest any additions/modifications. Also how much returns (per year) i may expect with this portfolio. Any other suggestion w.r.t. my portfolio. Thanks Again.

Ans: Your investment strategy appears well-thought-out, considering your age, investment horizon, and potential future job loss. Here are some insights and suggestions for your portfolio:

Fund Selection: Your choice of funds reflects a balanced approach, with exposure to both index funds and actively managed funds across different market caps. UTI Nifty 50 Index and ICICI Prudential Midcap 150 Index offer broad market exposure, while Parag Parikh Flexi Cap Fund and Quant Flexi Cap Fund provide flexibility and potential for alpha generation.

Duration and SIP Strategy: Your plan to continue SIPs for the next 3 years and then hold the accumulated funds for the subsequent 8 years aligns with your investment horizon and potential job uncertainty. It's wise to invest systematically and consider buying more units during market dips to benefit from cost averaging.

Portfolio Review: Periodically review your portfolio's performance and asset allocation to ensure it remains aligned with your goals and risk tolerance. Consider rebalancing if necessary to maintain the desired mix of equity, debt, and other assets.

Expected Returns: Predicting exact returns is challenging due to market volatility and various other factors. However, historically, equity investments have delivered higher returns over the long term compared to fixed-income investments. With a diversified portfolio like yours, you can aim for an average annual return of around 10-12%, though actual returns may vary.

Emergency Fund: Ensure your emergency fund is adequate to cover at least 6-12 months of living expenses. Since you anticipate a potential job loss, having a sufficient emergency fund will provide financial stability during uncertain times.

Regular Review and Monitoring: Stay informed about market developments and economic trends. Keep track of your investments' performance and make adjustments as needed to optimize your portfolio's returns and manage risks effectively.

Risk Management: While equity investments offer growth potential, they also carry higher volatility and risk. Ensure your asset allocation aligns with your risk tolerance and financial goals. Consider diversifying across asset classes to mitigate risk.

Overall, your investment approach seems reasonable, considering your circumstances. Continuously educate yourself about personal finance and investment principles to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 08, 2024Hindi

Hello Nikunj, first of all thanks for sharing your valuable inputs in this column. My age is 42 & i am currently investing in 4 funds through SIP of Rs.5000 each. UTI Nifty 50 index, Parag Parikh Flexi cap fund, ICICI Prudential Midcap 150 index fund & Quant flexi cap fund. Apart from this i have some small investments in FD's, shares & SGB's (30% each & 10% emergency fund). My plan is to invest for next 3 years through regular SIP & additionally by some more units on dips. After 3 years i will stop SIP ( as i might loose job by 45) & keep the accumulated funds as it is for next 8 years. Please share views on this, if funds are alright considering my age, duration etc. or you can suggest any additions/modifications. Also how much returns (per year) i may expect with this portfolio. Any other suggestion w.r.t. my portfolio. Thanks Again.

Ans: Your investment strategy appears well-thought-out, considering your age, investment horizon, and potential future job loss. Here are some insights and suggestions for your portfolio:

Fund Selection: Your choice of funds reflects a balanced approach, with exposure to both index funds and actively managed funds across different market caps. UTI Nifty 50 Index and ICICI Prudential Midcap 150 Index offer broad market exposure, while Parag Parikh Flexi Cap Fund and Quant Flexi Cap Fund provide flexibility and potential for alpha generation.

Duration and SIP Strategy: Your plan to continue SIPs for the next 3 years and then hold the accumulated funds for the subsequent 8 years aligns with your investment horizon and potential job uncertainty. It's wise to invest systematically and consider buying more units during market dips to benefit from cost averaging.

Portfolio Review: Periodically review your portfolio's performance and asset allocation to ensure it remains aligned with your goals and risk tolerance. Consider rebalancing if necessary to maintain the desired mix of equity, debt, and other assets.

Expected Returns: Predicting exact returns is challenging due to market volatility and various other factors. However, historically, equity investments have delivered higher returns over the long term compared to fixed-income investments. With a diversified portfolio like yours, you can aim for an average annual return of around 10-12%, though actual returns may vary.

Emergency Fund: Ensure your emergency fund is adequate to cover at least 6-12 months of living expenses. Since you anticipate a potential job loss, having a sufficient emergency fund will provide financial stability during uncertain times.

Regular Review and Monitoring: Stay informed about market developments and economic trends. Keep track of your investments' performance and make adjustments as needed to optimize your portfolio's returns and manage risks effectively.

Risk Management: While equity investments offer growth potential, they also carry higher volatility and risk. Ensure your asset allocation aligns with your risk tolerance and financial goals. Consider diversifying across asset classes to mitigate risk.

Overall, your investment approach seems reasonable, considering your circumstances. Continuously educate yourself about personal finance and investment principles to make informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 29, 2024Hindi

I have 60 lakhs 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 lakhs from EPF and invest in SBI hybrid fund, from which I can withdraw every month post retirement and the fund 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 thousand, the fund has grown to 1.29 crores. Is it advisable to withdraw from EPF , please suggest.

Ans: Withdrawing a significant amount from your EPF (Employee Provident Fund) and investing it in SBI hybrid fund for monthly withdrawals post-retirement is a decision that requires careful consideration.

EPF is a stable and secure investment option that provides guaranteed returns and tax benefits. Withdrawing a substantial amount from EPF may compromise your retirement savings and future financial security.

While investing in SBI hybrid fund can potentially generate higher returns, it also involves higher risks compared to EPF. Hybrid funds invest in a mix of equity and debt instruments, and their performance can be volatile, especially in the short term.

Before making any decision, consider the following factors:

Risk Tolerance: Assess your risk tolerance and investment objectives. Evaluate whether you're comfortable with the potential volatility and fluctuations in returns associated with SBI hybrid fund.

Retirement Goals: Review your retirement goals and financial needs post-retirement. Ensure that the proposed investment strategy aligns with your long-term objectives and provides sufficient income to meet your expenses during retirement.

Liquidity Needs: Consider your liquidity needs during retirement. EPF provides liquidity in the form of partial withdrawals and advances for specific purposes like medical emergencies, housing, or education. Assess whether investing in SBI hybrid fund will adequately address your liquidity requirements.

Tax Implications: Evaluate the tax implications of withdrawing from EPF and investing in SBI hybrid fund. EPF withdrawals may be subject to tax, especially if withdrawn before the completion of five years of continuous service. Consult with a tax advisor to understand the tax implications and optimize your tax strategy.

Investment Diversification: Ensure that your overall investment portfolio remains well-diversified and balanced. Avoid concentrating too much of your retirement savings in one particular investment or asset class.

Professional Advice: Seek guidance from a certified financial planner or investment advisor who can provide personalized recommendations based on your financial situation, goals, and risk profile.

Ultimately, the decision to withdraw from EPF and invest in SBI hybrid fund depends on your individual circumstances, risk tolerance, and long-term financial objectives. Consider all factors carefully before making any changes to your retirement savings strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 13, 2024Hindi

Hi I am currently not working. I am 53 years old. My Fnf amount is going to be around 6 lacs. I have 67 lacs in MIC getting around Rs 33000 as monthly interest. I have no other income sources as of now. Have invested around 4.5 lacs in MFs and SIP of Rs 7000 pm going on curently. Insurance premium is 1.5 lacs annually and health insurance is of 15 lacs. All are active. I have my own accomodation without any loans running upon it. It is valued at 25 lacs. No PLs or Credit Card outstandings as I don't use them. Gold is valued around 30 lacs. PPF balance is 5 lacs. A shop valued around 7 lacs. Not on rent presently. Savings in bank accounts is 6 lacs presently. Job is not gauranteed nowadays. Monthly expenditure is Rs 65000 including all savings investments My current age is 53 years and am the only bread earner for my family. I have an insurance coverage of 1 crore on myself. No additional income sources presently. How to increase my present income from available resources to around Rs 65000 pm atleast ? How can I raise atleast 2.5 crores by the time my only daughter turns 18 yrs which is 8 yrs away ?

Ans: Given your current financial situation and goals, here's a plan to increase your income and work towards accumulating Rs 2.5 crores by the time your daughter turns 18:

Optimize Existing Investments: Evaluate your current investments, including fixed deposits, mutual funds, and gold. Consider reallocating some of your assets to investments with higher potential returns, such as equity mutual funds or stocks, based on your risk tolerance and investment horizon.

Maximize Returns on Fixed Deposits: Explore options to maximize returns on your fixed deposits (MIC). Consider reinvesting the maturity amount in instruments offering higher interest rates, such as corporate deposits or debt mutual funds.

Review Insurance Policies: Assess your insurance coverage to ensure it meets your family's needs adequately. Consider optimizing your insurance portfolio to reduce premiums while maintaining sufficient coverage. Evaluate the possibility of switching to term insurance for cost savings.

Monetize Unused Assets: Consider selling or renting out the shop to generate additional income. Evaluate the potential rental income compared to the current market value of the property. Utilize the proceeds from the sale or rent to further invest in income-generating assets.

Explore Part-Time Work: Given the uncertainty of your job, consider exploring part-time or freelance opportunities in your field of expertise. Utilize your skills and experience to generate additional income while allowing flexibility in your schedule.

Increase Systematic Investment Plan (SIP) Contributions: If possible, consider increasing your SIP contributions to mutual funds. Focus on funds with a track record of consistent returns and align with your risk profile. Regularly review and rebalance your portfolio to optimize returns.

Create Additional Income Streams: Explore alternative income streams such as rental income from the shop, dividend income from investments, or online business opportunities. Diversifying your income sources can provide stability and resilience against financial uncertainties.

Seek Professional Advice: Consider consulting a financial advisor to tailor a comprehensive financial plan that aligns with your goals and risk tolerance. A professional advisor can provide personalized recommendations and guidance to optimize your financial resources.

By implementing these strategies and consistently reviewing your financial plan, you can work towards increasing your current income and accumulating the desired corpus for your daughter's future needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Oct 30, 2023Hindi

Hi, Earlier, i had asked a question regarding a home loan i have. following is my question. "Hello Sir/Madam, I bought an apartment from a standard builder in Hyderabad. the possession of house supposed to happen after an year. So, i have taken house loan from a Bank for this house. Now, i have started the regular EMI for this with interest rate of 9%. so, my question is, monthly i have some surplus amount after the EMI and expenses, is it good idea to use that for repaying my home loan or do i need to wait till possession. My wife suggests to wait till the possession, then start repaying. Please suggest what do you think is better?" the answer i got was : yes, repay the house loan as the interest rate is high. However, as the possession of the apartment happens only after an year, is it good idea to repay the loan or not. the builder is a standard builder from Hyderabad. If we don't repay the amount any risk from builder is borne by the Bank, not me, hence i am asking this question. So, please answer. thank you Nagaraju

Ans: Unfortunately, I don't have access to your previous queries.Best Regards,

But generally, for a home loan with a high interest rate of 9%, it's usually recommended to start repaying the loan as early as possible to minimize the total interest paid over the loan term. Even though you haven't received possession of the property yet, repaying the loan can bring you benefits like:

Reduced interest burden: The sooner you start repaying, the less interest you will accrue over the loan term.
Improved credit score: Regular EMI payments can improve your credit score, making it easier to secure loans in the future and potentially at better interest rates.
However, there are also some factors to consider before making a decision:

Prepayment penalty: Some banks might have prepayment penalties for paying off the loan before the end of the term. Check your loan agreement for any such clauses.
Need for emergency funds: It's important to maintain an emergency fund to cover unexpected expenses. Ensure you have sufficient funds set aside before using your surplus for loan repayments.
If you're unsure about whether to start repaying the loan now or wait until possession, it's advisable to consult with a financial advisor. They can consider your specific financial situation and recommend the best course of action.
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Mar 09, 2024Hindi

I am single 25 years and working in the US with H1B VISA. My annual package is USD 90K. I am staying with my elder brother who is also working with no cost to me. My expenses are EMI of the Car USD 500 per month, average fuel and 500/600 USD EMI for a home I bought recently. I do not smoke or drink as well. Having no liabilities. My brother and sister-in-law are too caring. They both work from home with nice packages. My parents are working and live in India and visit us almost every year. They are looking for a girl for me as well. I do not have large savings. I request you to guide me on a financial plan with good savings and for a future married life.

Ans: It's great that you're thinking about your financial future at such a young age. With your current situation and goals in mind, here's a plan to help you build savings and prepare for your future married life:

Budgeting: Start by tracking your expenses to understand where your money is going. Create a budget that allocates a portion of your income towards savings and investments.

Emergency Fund: Build an emergency fund equivalent to 3-6 months of living expenses. This fund will provide a financial safety net in case of unexpected expenses or job loss.

Debt Management: Continue paying off your car loan and home EMI on time. Avoid accumulating any high-interest debt and focus on becoming debt-free as soon as possible.

Savings and Investments: Begin investing a portion of your income in retirement accounts such as a 401(k) or IRA. Take advantage of employer matching contributions if available. Consider investing in low-cost index funds or diversified mutual funds for long-term growth.

Homeownership: While owning a home is a good investment, ensure that the mortgage payments are manageable and leave room in your budget for other financial goals. Consider refinancing if it helps lower your monthly payments.

Insurance: Review your health insurance coverage to ensure it meets your needs. Consider purchasing disability insurance to protect your income in case you're unable to work due to illness or injury.

Marriage and Family Planning: Discuss your financial goals and expectations with your future spouse once you find a partner. Plan for expenses related to marriage, such as wedding costs and setting up a household together. Consider discussing prenuptial agreements to protect both parties' financial interests.

Communication and Support: Maintain open communication with your family members about your financial plans and goals. Seek their guidance and support as you navigate your financial journey.

Remember, building wealth is a gradual process that requires patience and discipline. Stay focused on your goals, continue learning about personal finance, and seek professional advice if needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Nov 30, 2023Hindi

Hello Sir, I invest 80K per month on SIP. Below is my portfolio. Can you suggest if this is good or I need to make any changes? SBI Blue Chip Fund - Direct Plan - Growth: 10,000 SBI Nifty Smallcap 250 Index Fund - Direct Plan - Growth: 15,000 Invesco India Contra Fund - Regular Growth: 10,000 Mirae Asset Large Cap Fund - Regular Plan: 10,000 SBI Magnum Comma Fund - Direct Plan - Growth: 5,000 SBI Small Cap Fund Direct Growth: 5,000 Canara Robeco Flexi Cap Fund - Regular IDCW: 5,000 Canara Robeco Infrastructure - Regular Growth: 5,000 DSP Natural Resources and New Energy Fund - Regular Plan - Growth: 5,000 Edelweiss Small Cap Fund - Regular Plan Growth: 5,000 Mahindra Manulife Small Cap Fund - Regular - Growth: 5,000

Ans: Your investment approach is diversified, covering various segments of the market. However, it appears slightly overdiversified with multiple funds in similar categories.

Consider consolidating your portfolio to reduce complexity and streamline management. Focus on high-performing funds with strong track records and consistent management.

Ensure each fund aligns with your risk tolerance and investment goals. Review the performance of each fund regularly and make adjustments as necessary.

Be cautious of overexposure to small-cap and sector-specific funds, as they can be volatile. Balance your portfolio with a mix of large-cap, mid-cap, and diversified equity funds for stability and growth potential.
There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Regularly monitor your portfolio's performance and make adjustments to maintain your desired asset allocation and risk profile.

Remember, simplicity and clarity are key to effectively managing your investments. Streamlining your portfolio will make it easier to track and optimize over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Vignesh - Sep 23, 2023Hindi

Dear Sir. I am 43 years old. i am a salaried person and my investment plan is for 15 years(Retiring a the age of 58). From Jan 2022 I am doing MF SIP of Rs. 12,000 pm(Increasing at rate of 10% per year). My purpose of investment is for retirement. Presently my monthly SIP in MF is as follows: 1) Canara Robeco Blue Chip Fund(Regular Growth) -- Rs 3,000 p.m. with 10% increase every year. 2) Axis Midcap Fund(Regular growth) - Rs 3,000 p.m. - with 10% increase every year. 3) SBI Small cap Fund(Regular Growth - Rs. 3000 p.m.- Without increase. 4) White Oak Flexi Cap Fund - Rs 2800 p.m. - Without increase. Further i am investing 2 to 5 gram (Lumpsum) in Sovereign Gold Bonds(8 years lock-in) as and when bonds listed for IPO. I want to earn Rs 1,00,000 p.m. after retirement. Please review my portfolio and advise for any change/shift to be done before retirement.

Ans: Your investment strategy for retirement looks well-planned and diversified. Regularly reviewing your portfolio is prudent to ensure it aligns with your goals.

Consider increasing exposure to funds with a consistent track record of delivering returns over the long term. Rebalance periodically to maintain the desired asset allocation.

Given your timeline, staying invested in equities is sensible for potential growth. However, keep an eye on market trends and adjust your portfolio accordingly.

Continue to capitalize on opportunities like Sovereign Gold Bonds, but ensure they complement your overall portfolio without overshadowing other investments.

As you approach retirement, gradually shift towards more conservative options to safeguard your capital while aiming to generate the desired monthly income.

Remember, consistency and discipline are key to achieving your retirement goals. Keep monitoring and adjusting your strategy as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 30, 2024Hindi

My father took a loan against property worth Rs 13 lakh in 2017 at 11% PA from BOI. There are around another 6 years left in the loan tenure. The outstanding balance currently is around 850000. I want to know how I can plan on prepaying the loan by depositing some extra amounts whenever I have money. Like 20–30k where ever I have money. I want to know how this will impact the loan amount. Is this going to reduce the principal amount or interest amount, or will it reduce the tenure of the loan? Any financial expert, please help me.

Ans: It's commendable that you're considering prepaying your father's loan to reduce the financial burden and potentially save on interest payments. Let's delve into how making extra payments towards the loan can impact its terms.

Impact of Extra Payments:

Principal Reduction: When you make additional payments towards the loan, the extra amount goes towards reducing the principal balance. This means that you'll owe less on the loan, which can help you save on interest over the remaining tenure.

Interest Savings: By reducing the principal amount, you're effectively reducing the interest charged on the outstanding balance. As a result, you'll pay less interest over the remaining tenure of the loan, leading to potential savings in the long run.

Loan Tenure Reduction: While making extra payments won't directly reduce the loan tenure, it can indirectly shorten the time it takes to repay the loan. By reducing the principal balance and the total interest paid, you'll effectively accelerate the loan repayment process, which can lead to paying off the loan sooner than originally planned.

Strategic Prepayment Plan:

Regular Extra Payments: Your strategy of depositing extra amounts whenever you have money is a prudent approach. By consistently making additional payments towards the loan, you can steadily reduce the outstanding balance and expedite the loan repayment process.

Financial Planning: It's essential to assess your financial situation and prioritize prepayments based on available funds and other financial obligations. Consider creating a budget and setting aside a portion of your income specifically for loan prepayments to ensure consistency.

Communication with Bank: Before making extra payments, it's advisable to communicate with the bank to understand their prepayment policies and procedures. Some lenders may have restrictions or penalties for prepayments, so it's essential to clarify these details beforehand.

Consultation with Financial Expert:

While prepaying the loan can be beneficial, it's crucial to evaluate your overall financial situation and consider factors like other debts, emergency savings, and long-term financial goals. Consulting with a Certified Financial Planner can provide personalized guidance and help you develop a comprehensive debt repayment strategy aligned with your objectives.

In conclusion, making extra payments towards your father's loan can significantly impact the principal balance, interest payments, and overall loan repayment timeline. By adopting a disciplined approach and leveraging available funds strategically, you can work towards achieving financial freedom and alleviating the burden of debt.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Mamta - Apr 30, 2024Hindi

Myself Vishal Choubey nd My wife shanti age 39 both. HaHaving 5 houses Rented(10000/-) 2bhk(30L) HALOL, Rented(10500/-) 2BHK BHIWADI (45L), Rented(7000/-)Bhk (45 Lakh) Jamshedpur, Self Living 3BHK(45Lakh) Jamshedpur , One 2 floor house Jamshedpur Rented 27k. Home Loan of 13.5Lakh is due for one house. 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 MF investment 3 Lac in Edelweiss greater China fund Axis China fund current vale 5.2 Lakh Nippon Taiwan 49 k sip till date investment 7.37 Lakh market value 9.53 lakh, 5k sip in elss Idfc tax advantages fund investment of 70k is now 2.6 Lakh, Many fund got doubled in last 3-4 years Approx 50 lakh MF portfolio. 14 Lakh FD wish to invest in MF globally, buy on dip strategy. A land parcel of of 1 acre approx 35 Lakh. All the assets are created in last 10yrs. Wish to sell one apartment and invest into China fund your advise required? By profession I am a PVC flex material trader, my wife is training centre owner. Having two son 4 yrs and 2 yrs old. Want to create a monthly income of 2 Lakh monthly including rent. And 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? OUR MONTHLY INCOME 1.5lakh for each. Kindly your advise

Ans: Vishal and Shanti, it's evident you've diligently built a diversified portfolio over the past decade, and you're now looking to fine-tune it to meet your future financial goals. Let's break down your situation and devise a strategic plan to achieve your objectives.

Assessment of Current Portfolio:

You have a robust real estate portfolio comprising five rental properties and a self-occupied residence. However, you also have a significant exposure to the Chinese market through mutual funds. While these investments have performed well historically, it's crucial to acknowledge the higher risk associated with international investments.

Your mutual fund portfolio, particularly the investments in Edelweiss Greater China Fund and Axis China Fund, has seen substantial growth. However, it's important to regularly review your portfolio's performance and adjust your investments as needed to mitigate risks and seize opportunities.

Planning for the Future:

Selling Apartment and Investing in China Fund: Selling one of your properties to invest in a China-focused fund could further diversify your portfolio. However, it's essential to consider the implications of concentrating your investments further in the Chinese market, especially given its volatility and geopolitical risks. Diversification across asset classes and regions is key to managing risk effectively.

Monthly Income and Wealth Creation Goals: Your target of generating a monthly income of 2 lakh rupees, including rental income, is ambitious but achievable with a strategic approach. Considering your current income streams and investments, it's feasible to gradually increase your SIP contributions to meet this target. However, it's essential to assess your risk tolerance and ensure that your investment strategy aligns with your long-term goals.

Investment Strategy: Given your desire to invest globally and your preference for a buy-on-dip strategy, you may consider exploring opportunities in international mutual funds or exchange-traded funds (ETFs) that offer exposure to diverse markets. However, it's crucial to conduct thorough research and consult with a financial advisor to select funds that align with your risk profile and investment objectives.

Recommendations:

Diversification: While international investments can offer growth opportunities, ensure that they complement your existing portfolio rather than increasing concentration risk. Consider diversifying across regions and asset classes to mitigate risk and enhance long-term returns.

Regular Portfolio Review: Continuously monitor the performance of your investments and make adjustments as needed to stay aligned with your financial goals. Regular portfolio reviews with a Certified Financial Planner can help identify opportunities for optimization and risk management.

Risk Management: Given the dynamic nature of financial markets, it's crucial to prioritize risk management and adopt a disciplined approach to investing. Avoid chasing short-term gains and focus on building a resilient portfolio that can withstand market volatility.

In conclusion, while your current portfolio reflects your proactive approach to wealth creation, it's essential to reassess your investment strategy periodically and make informed decisions to achieve your long-term financial objectives. By diversifying your investments, prioritizing risk management, and staying disciplined, you can work towards building a robust financial foundation for your family's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Ayyagari - Apr 30, 2024Hindi

Sir, I am covered under ECHS scheme as an Oficer. I have been recommmended for Left Eye Cataract surgery and the ECHS has a cap on the expenditure. I have an additional insurance policy whose cap is Rs 30000/ for monofocal lens only. Since I am going in for a better lens how can I avail the insurance also so as to pay minimum from my pocket. Please advice

Ans: Here's how you can potentially minimize your out-of-pocket expense for cataract surgery with ECHS and your insurance:
1. Understand Your ECHS Coverage:

ECHS has pre-defined package rates for cataract surgery. These rates may cover a specific type of lens (likely monofocal).
Check the ECHS policy documents or contact your local ECHS office for details on their coverage for cataract surgery, including the type of IOL (Intraocular Lens) covered.
2. Explore Options with the Hospital:

Discuss your situation with the empaneled hospital performing the surgery.
Explain your ECHS coverage and the additional insurance benefit for a better lens.
Hospitals might be able to provide a breakdown of costs for surgery with a monofocal lens (covered by ECHS) and the additional cost for the better lens you desire.
3. Leverage Your Insurance:

If the chosen lens falls under the Rs. 30,000 limit of your insurance plan and isn't covered by ECHS, you can likely claim the additional cost through your insurance.
Contact your insurance provider and understand their claim process for cataract surgery with a specific lens type.
Here's a possible scenario:

Let's say the ECHS covers surgery with a monofocal lens costing Rs. 20,000.
The better lens you desire costs Rs. 10,000 extra (total cost Rs. 30,000).
Since it falls under your insurance coverage limit, you can potentially:
Pay Rs. 20,000 to the hospital, covered by ECHS.
Claim Rs. 10,000 for the lens upgrade from your insurance company.
Important Note:

This is a simplified scenario. Actual costs and claim processes may vary.
Recommendations:

Get a written cost breakdown from the hospital for surgery with different lens options.
Contact your insurance company and understand their claim process for cataract surgery with a specific lens type.
Once you have this information, you can calculate the potential out-of-pocket expense for each scenario (monofocal vs. preferred lens).
By following these steps, you can make an informed decision about the lens and minimize your out-of-pocket expense for cataract surgery.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Shailendra - Apr 22, 2024Hindi

I am 65 and retired, want to invest 50L in SWP scheme with monthly withdrawal of 50k after one year of investing. Pl suggest good fund ????????

Ans: It's wonderful that you're considering investing in a Systematic Withdrawal Plan (SWP) to generate a steady income stream during your retirement years. Given your investment horizon and income requirement, it's essential to choose a fund that balances growth potential with stability.

For your SWP scheme, you may want to consider investing in a balanced or hybrid fund. These funds typically allocate a portion of their assets to equities for growth potential and the remainder to debt instruments for stability.

Balanced funds aim to provide a blend of capital appreciation and income generation by investing in a mix of equities and debt securities. They can be suitable for retirees looking for a steady income stream while also seeking potential growth opportunities.

When selecting a balanced fund, look for one with a consistent track record of performance, low expenses, and a seasoned fund manager. Additionally, consider the fund's asset allocation, risk profile, and investment strategy to ensure it aligns with your financial goals and risk tolerance.

It's crucial to review your investment periodically and make adjustments as needed to ensure your portfolio remains aligned with your income requirements and financial goals.

Before making any investment decisions, I highly recommend consulting with a Certified Financial Planner who can assess your retirement needs and recommend a suitable SWP scheme tailored to your specific circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Murugesan - Apr 19, 2024Hindi

Ramalingam I am Murugesan I am 47 years old. Advise me to invest in SIP. Fund name and Amount please

Ans: Hello Murugesan, it's great to hear from you. Considering your age and investment horizon, investing in SIPs can be a wise choice to build wealth over the long term.

Given your age and the potential need for stability in your investment portfolio, you may want to consider a mix of equity and debt funds. Equity funds offer growth potential but come with higher volatility, while debt funds provide stability but typically offer lower returns.

For equity funds, you may consider large-cap or multi-cap funds, which invest in well-established companies with a track record of stable performance. These funds can provide growth potential while mitigating some of the risks associated with smaller companies.

For debt funds, you may look into short-term or medium-term debt funds, which invest in fixed-income securities like government bonds and corporate bonds. These funds offer stability and regular income, making them suitable for investors seeking capital preservation.

As for the amount to invest in SIPs, it's important to determine a comfortable amount based on your financial goals, income, and expenses. A general guideline is to aim for a savings rate of around 10-15% of your income, but this can vary depending on individual circumstances.

It's crucial to choose funds that align with your investment objectives and risk tolerance. I recommend consulting with a Certified Financial Planner who can assess your financial situation holistically and recommend a personalized investment strategy tailored to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Narendran - Apr 13, 2024Hindi

Hello Sir/Mam, I am currently investing SIP of 1K per month in Quant Tax plan- direct growth for past 1 year. Now I am willing to invest an extra 5k per month.I am not sure in which plan to invest. Can you suggest me a investment plan? Thank you.

Ans: It's great to see your commitment to investing and growing your wealth. Investing regularly through SIPs is a smart move, especially for long-term financial goals.

Considering your current SIP in a tax-saving fund, you're already taking advantage of tax benefits while building your investment portfolio. Now, with an additional 5k per month to invest, it's crucial to choose a plan that aligns with your financial goals and risk tolerance.

Since you're already investing in a tax-saving fund, you may want to diversify your portfolio by considering other equity or debt funds. Equity funds offer the potential for higher returns over the long term but come with higher volatility. On the other hand, debt funds provide stability but usually offer lower returns.

Given your investment horizon and risk appetite, you may consider allocating a portion of the additional investment amount to diversified equity funds for growth potential and the remaining to debt funds for stability.

It's essential to research and choose funds that have a consistent track record of performance and align with your investment objectives. Moreover, periodic review of your portfolio and rebalancing as needed can help you stay on track towards your financial goals.

Feel free to consult with a Certified Financial Planner to discuss your investment options further and create a customized investment plan tailored to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Question by Kotte - Apr 30, 2024Hindi

I invested in mf sip of sbi contra fund Reg G,Quant small cap fund Reg G, Sbi small cap fund Dir G, And also lumpsum of ?5000 in Parag parikh flexi cap fund Dir G, Nippon India nifty small cap 250 index fund Dir G, Sbi nifty small cap 250 index fund Dir G. Kindly advice is it required any reallocation required,if yes suggest pl.

Ans: It's excellent that you're investing in mutual funds through SIPs and lump-sum investments, which can help you build wealth over the long term. Let's assess your current portfolio and see if any reallocation is needed.

Your portfolio consists of a mix of actively managed funds and index funds, covering different market segments like contra, small-cap, and flexi-cap. This diversification is good, but it's essential to periodically review and rebalance your portfolio to ensure it remains aligned with your financial goals and risk tolerance.

Firstly, let's evaluate your actively managed funds. SBI Contra Fund, Quantum Small Cap Fund, and SBI Small Cap Fund are actively managed funds with varying investment strategies. It's crucial to monitor their performance and ensure they continue to meet your expectations. If any of these funds consistently underperform or deviate from their investment mandate, you may consider reallocating your investments to better-performing alternatives within the same category.

Regarding your lump-sum investments, Parag Parikh Flexi Cap Fund is known for its diversified approach across market caps and sectors, providing flexibility and potential for growth. However, it's essential to review its performance periodically to ensure it continues to deliver results.

Nippon India Nifty Small Cap 250 Index Fund and SBI Nifty Small Cap 250 Index Fund are passive funds tracking the Nifty Small Cap 250 Index. While index funds offer low-cost exposure to specific market segments, they may not outperform actively managed funds consistently. However, they provide diversification and can be a valuable component of a well-rounded portfolio.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Consider your investment goals, risk tolerance, and time horizon when evaluating the need for reallocation. If any fund significantly underperforms or if your financial circumstances change, you may need to rebalance your portfolio accordingly.

It's advisable to consult with a Certified Financial Planner who can provide personalized advice based on your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 30, 2024Hindi

I am retiring with a corpus of 1 crore. How should I invest the same? Is it wise to put 30,00,000/- in a deferred annuity policy inspite of me going to get 50,00,000/- monthly income? Or should I invest only in FDs, SC Postal? Please advise. I don't have much savings.

Ans: It's great that you're planning for your retirement and have a significant corpus to work with. However, putting a large portion of your corpus into a deferred annuity policy might not be the most optimal choice.

Annuities can provide a steady income stream, but they often come with restrictions and may not offer the best returns compared to other investment options. Additionally, once you invest in an annuity, the funds are generally not accessible for other needs or emergencies.

Considering your desire for a monthly income of 50 lakhs, it's crucial to explore other investment avenues that can provide both growth and income. Fixed deposits (FDs) and small savings schemes like Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POMIS) can provide stable returns, but they might not offer the growth potential needed to sustain your desired income over the long term.

Instead, you may want to consider a combination of equity and debt investments tailored to your risk tolerance and income needs. Mutual funds, especially those focused on generating regular income, can be a good option. You can also explore dividend-paying stocks or bonds to supplement your income.

It's essential to have a diversified portfolio that balances risk and return. While FDs and small savings schemes can provide stability, they might not keep pace with inflation over time. By allocating a portion of your corpus to growth-oriented investments, you can potentially achieve higher returns and preserve the purchasing power of your savings.

Before making any decisions, it's advisable to consult with a Certified Financial Planner who can assess your financial situation holistically and recommend a personalized investment strategy that aligns with your goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - Apr 30, 2024Hindi

Hi, I'm 27 years old working professional, married. I'm earning 15 laks per annum. I started investing this December. I have 2 lacs in MF (95% ELSS) and about 1 lac in equity trading (which is 5-6% in loss). As I belongs to Village. I got home(father's) and also have a car so I don't have to worry about these atleast for next 10-15 years. Planning my first baby in August this year. I'm targeting 3cr savings by the age of 55 and seeking your advice for the same.

Ans: Congratulations on starting your investment journey and planning for your future! It's commendable that you're thinking ahead and setting ambitious goals for yourself and your family.

Considering your current financial situation and goals, it's essential to ensure a diversified investment portfolio. While equity-linked savings schemes (ELSS) offer tax benefits, it's wise not to rely solely on them. Diversification across asset classes like equity, debt, and possibly gold can help manage risks.

Given your familiarity with equity trading, it's crucial to be cautious. While the potential for high returns exists, so does the risk of losses. Consider transitioning some of your equity trading capital into mutual funds managed by professionals. These can offer more stability and better long-term growth prospects.

As you're planning to start a family, it's prudent to allocate funds for future expenses like education and healthcare. Investing in mutual funds with a focus on growth can help build a substantial corpus over time.

Since you have a home and a car, you have a solid foundation. However, it's wise to have an emergency fund set aside for unexpected expenses. Aim to build a fund that can cover at least six months of living expenses.

Regularly review your financial plan and make adjustments as needed. Life circumstances and market conditions can change, so staying adaptable is key to success.

Remember, patience and discipline are vital in investing. Stay focused on your long-term goals, and don't get swayed by short-term market fluctuations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

Asked by Anonymous - May 12, 2024Hindi

1., Retired 2. Investment corpus available Rs 70 lacs 3. No liabilities 4. All medical exp insured 5. Own house 6. Need a monthly income of Rs 50000

Ans: With a retirement corpus of Rs 70 lakhs and a monthly income requirement of Rs 50,000, let's devise a sustainable income strategy. Given your situation with no liabilities, medical expenses insured, and owning a house, we can focus on generating a steady stream of income from your investments.

Considering the need for a monthly income of Rs 50,000, it's essential to strike a balance between generating sufficient income and preserving capital for the long term.

One option is to allocate a portion of your corpus to conservative fixed-income instruments such as fixed deposits, bonds, or debt mutual funds. These can provide stable returns while safeguarding your capital. Additionally, consider investing in dividend-paying stocks or mutual funds with a history of consistent dividends to supplement your income.

Another approach is to allocate a portion of your corpus to equity investments, which have the potential to generate higher returns over the long term. However, this comes with higher volatility, so it's crucial to assess your risk tolerance and invest accordingly.

A combination of these strategies, tailored to your risk profile and income needs, can help you achieve your goal of generating a monthly income of Rs 50,000 while ensuring the sustainability of your retirement corpus.

Regular reviews with a certified financial planner can help you adjust your investment strategy as needed and ensure that your income needs are met throughout your retirement years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Asked by Anonymous - May 06, 2024Hindi

I'm having 35L lumpsum. Please suggest investment strategies to make it to 1CR in roughly 5 YEARS or before. Experienced & Professionals please suggest. I need help. Please.???? Your valuable insights & suggestions are MOST WELCOME. THANKS IN ADVANCE. KINDLY HELP ????????????

Ans: let's approach this with a realistic perspective. Achieving a 1 crore target in just 5 years from a 35 lakh lump sum is quite ambitious and may involve high-risk strategies. It's essential to understand that aiming for quick riches often leads to disappointment and potential loss of principal.

Instead of chasing unrealistic targets, focus on sustainable wealth-building strategies. Consider allocating your lump sum across a diversified portfolio of assets such as equity mutual funds, debt instruments, and possibly some exposure to real estate investment trusts (REITs) or gold ETFs for stability.

Aiming for a reasonable annualized return of around 12-15% is more realistic over the long term. Remember, slow and steady wins the race in wealth accumulation. Avoid falling for get-rich-quick schemes or high-risk investments promising unrealistically high returns.

Prioritize your financial goals, whether it's wealth creation, retirement planning, or other objectives, and tailor your investment strategy accordingly. Consult with a certified financial planner to create a personalized investment plan aligned with your risk tolerance and financial objectives.

In conclusion, while it may not be feasible to achieve a 1 crore target in just 5 years with a 35 lakh investment, adopting a disciplined and diversified approach to investing can help you steadily build wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Sundeep - May 07, 2024Hindi

Hello Jinal, greetings, I have been investigating in the below funds. Please let me know whether I should continue my SIP of 40K in these below funds for next 10,15,20 years. Investing since Apr 2023. Age 33, goals: retirement, children education and marriage. Funds: 1. Axis growth opportunities direct fund. 2. DSP Value fund direct. 3. SBI multi cap direct fund. 4. PPFAS flexi cap direct fund. 5. Quant tax saver fund direct. Reason to choose these funds to get diversified categories as well as international exposure. Adding more, like each funds strategies are different from each other.

Ans: It's great to see your commitment to long-term financial planning! Your chosen funds indeed offer a well-rounded portfolio catering to various investment objectives. Each fund's distinct strategy enhances diversification, mitigating risk and maximizing returns over time.

Axis Growth Opportunities fund provides exposure to high-growth potential companies, aligning with long-term wealth accumulation goals. DSP Value fund, focusing on undervalued stocks, adds stability to your portfolio, crucial for achieving financial milestones like children's education and marriage.

SBI Multi Cap fund's flexibility in investing across market caps ensures adaptability to market dynamics, essential for sustained growth. PPFAS Flexi Cap fund's international exposure offers a hedge against domestic market volatility, fostering global wealth creation opportunities.

Quant Tax Saver fund not only aids in tax efficiency but also provides a unique investment approach, complementing the other funds' strategies. However, it's vital to monitor fund performance periodically and rebalance if necessary to stay aligned with your goals.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Remember, investing is a marathon, not a sprint. Stay disciplined, and trust the process. Your dedication to systematic investment will yield significant results over the years, securing a comfortable future for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Sundeep - May 07, 2024Hindi

Hello Sir, greetings, I have been investigating in the below funds. Please let me know whether I should continue my SIP of 40K in these below funds for next 10,15,20 years. Investing since Apr 2023. Age 33, goals: retirement, children education and marriage. Funds: 1. Axis growth opportunities direct fund. 2. DSP Value fund direct. 3. SBI multi cap direct fund. 4. PPFAS flexi cap direct fund. 5. Quant tax saver fund direct. Reason to choose these funds to get diversified categories as well as international exposure. Adding more, like each funds strategies are different from each other.

Ans: It's great to see your commitment to long-term financial planning! Your chosen funds indeed offer a well-rounded portfolio catering to various investment objectives. Each fund's distinct strategy enhances diversification, mitigating risk and maximizing returns over time.

Axis Growth Opportunities fund provides exposure to high-growth potential companies, aligning with long-term wealth accumulation goals. DSP Value fund, focusing on undervalued stocks, adds stability to your portfolio, crucial for achieving financial milestones like children's education and marriage.

SBI Multi Cap fund's flexibility in investing across market caps ensures adaptability to market dynamics, essential for sustained growth. PPFAS Flexi Cap fund's international exposure offers a hedge against domestic market volatility, fostering global wealth creation opportunities.

Quant Tax Saver fund not only aids in tax efficiency but also provides a unique investment approach, complementing the other funds' strategies. However, it's vital to monitor fund performance periodically and rebalance if necessary to stay aligned with your goals.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Remember, investing is a marathon, not a sprint. Stay disciplined, and trust the process. Your dedication to systematic investment will yield significant results over the years, securing a comfortable future for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Atish - May 06, 2024Hindi

Hi I'm Atish, I want to invest a lumpsum of 3lakhs in which fund I should invest please guide.

Ans: Hello Atish,

Investing a lump sum of 3 lakhs requires careful consideration of your financial goals, risk tolerance, and investment horizon. Here's a suggestion on where you could invest:

Given the current market conditions and your investment horizon, consider allocating your lump sum across a diversified portfolio of mutual funds. Since you're investing a significant amount at once, it's crucial to mitigate risk by spreading your investments across different asset classes.

You can consider investing in a combination of large-cap, mid-cap, and multi-cap equity funds to capture growth opportunities across market segments. Additionally, allocating a portion to debt funds can provide stability to your portfolio and reduce overall volatility.

Look for mutual funds with a proven track record of consistent performance, low expense ratios, and experienced fund managers. Consider funds that align with your investment goals and risk appetite.

Before making any investment decisions, it's advisable to consult with a Certified Financial Planner who can assess your financial situation, goals, and risk tolerance. They can help you design a personalized investment strategy and select suitable mutual funds to achieve your objectives.

Remember to review your investments periodically and make adjustments as needed to stay on track towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |2029 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Question by Karthik - May 11, 2024Hindi

Hi sir I started my investment in dsp mutual fund with 11,000 from July 2023 and in Bank of India mutual fund in small flexi and multi cap 4000 each every month from December what could be me return after 15 years

Ans: Predicting the exact returns of mutual fund investments over 15 years is challenging due to market uncertainties. However, we can estimate potential returns based on historical performance and certain assumptions.

DSP Mutual Fund and Bank of India Mutual Fund offer a range of equity-oriented funds, which historically have provided higher returns over the long term compared to fixed-income investments.

Assuming an average annual return of 12% for DSP Mutual Fund and 10% for Bank of India Mutual Fund, which are reasonable estimates based on historical market performance, we can project the future value of your investments.

Considering your monthly investments of 11,000 in DSP Mutual Fund and 8,000 (4,000 each) in Bank of India Mutual Fund, let's calculate the future value using a mutual fund calculator.

After 15 years, your investments could potentially grow substantially, providing a significant corpus for your financial goals. However, it's essential to review and adjust your investments periodically based on market conditions and your financial objectives.

Keep in mind that these are projections based on historical data and assumptions. Actual returns may vary depending on market performance and other factors. It's advisable to consult with a Certified Financial Planner for personalized investment advice tailored to your specific needs and goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

(more)

Money

Need Expert Advice?Our Gurus Can Help