Money - Rediff Gurus

Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Question by Deepak - Jul 26, 2024Hindi

Hi Sir,I am 45 yrs i am planning to retirement early up to age 55. and my target is up to 2 cr savings. i have lum sum one time invested mutual fund 20lac and SIP 22k/month also . Insurance plan up to 1.5lac. my salary is 1.2lac /month. please suggest.

Ans: Hi,
This is insufficient data to answer your question currently. However, assuming that you might have invested the 20 lacs 10 Years back, you might be able to achieve a corpus of close to 1.9 cr after 10 Years from now assuming 12% annualised returns. The 22k sip might yield you a corpus of around 50 lacs in 10 Years assuming 12% annualised returns. You goal looks achievable. You can look to increase the SIP amount since your income shows you have the bandwidth.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

(more)

Money

Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Question by Suresh - Jul 26, 2024Hindi

Sir, I have completed 58 years and what reason should I select for exit date in EPF Retirement or Superannuation for pension? kindly advise soon.

Ans: Hi,
This would depend on how soon you want to start receiving the pension. Assuming that you need the pension starting from age 60, you can apply for refund of EPF amount after age 55 since EPFO considers 55 as the retirement age. For superannuation, it is better to wait till the age of 60 because this comes with tax exemptions.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

(more)

Money

Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

Financial Planning - Need help with my dad's pension. My mom (49y) has around 3L in savings (from my dad's pension) and will be getting 35,000 per month as the pension. How do I go about investing this? This is her savings, so don't want something very risky and we won't need the cash in short term. Let me know the geniuses of the sub. I am thinking a mix of High dividend MFs + Debt bonds on wint wealth. Please do let me know as we need the interest/dividend income every once in a while if not every month. I have a corporate insurance with 5L cover and Personal Insurance with 25L cover which will 3x in 3 years (currently 37.5L + 25L).

Ans: Hi,
Given your mother's age and the situation, you may consider investing the monthly pension into a mix of Largecap, balanced advantage and Debt/Equity arbitrage mutual funds in the ratio of 20%, 50%, 30% respectively. This might help build a good risk-adjusted corpus in the long run. Assuming that you may need certain amount every quarter, you may consider quarterly swp from the funds which can give you a fixed amount. Depending on interest/dividend income might not be advisable since there is some volatility involved. I hope such a mechanism can help you build a good risk-adjusted returns along with receiving frequent amounts as needed.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Kunal - Jul 20, 2024Hindi

Hi I am 38 years old Central banker and my wife is 35 years old financial professional with combined salary of Rs 2.80 lakhs per month ( post deducting all monthly EMI’s).Our combined Investment per month is as under- -Mutual fund SIP- 1.75 lakhs ( includes retirement planning and educational planning for both the kids) -PPF 10k each for both of us -Sukanya Samruddhi Yojana -10k per month for girl child -VPF from wife’s ac- 12k -NPS from my salary 35k -Further, Life insurance Term plan of Rs 1.5 cr and 2.25 cr taken for me and my wife respectively. -1 lakh per year goes towards HDFC Samchay plan for period of 12 years and expected 2lakh per year for 14 th year to 26 years. $as on date portfolio of ours is as under:- -direct equity- around Rs. 57lakhs -Gold max 10lakh -Mutual fund corpus- 52 lakhs -2 residential flats and investment in 3 residential open plots. - 40 lakh corpus available for investing lumps in mutual fund for additional retirement planning. Funds made available by selling a Bunglow property. -monthly rental income is around 29 k. Kids aged 6 and 2 years old. Desire to retire at the age of 55 years and wife would like to retire at the age of 45 years. -Current monthly expenses is around 1 lakh per month and considering inflation 7%, post retirement per month requirement would be 4 lakhs. Please review and suggest improvement in investment strategy. Thank you very much

Ans: Current Financial Snapshot
Combined Salary: Rs. 2.80 lakhs per month (post deducting EMIs)
Mutual Fund SIPs: Rs. 1.75 lakhs per month
PPF Contributions: Rs. 10k each per month
Sukanya Samruddhi Yojana: Rs. 10k per month
VPF from Wife's Account: Rs. 12k per month
NPS Contribution: Rs. 35k per month
Life Insurance Term Plans: Rs. 1.5 cr for you and Rs. 2.25 cr for your wife
HDFC Samchay Plan: Rs. 1 lakh per year for 12 years, expected Rs. 2 lakhs per year from 14th to 26th year
Portfolio Overview
Direct Equity: Rs. 57 lakhs
Gold: Rs. 10 lakhs
Mutual Fund Corpus: Rs. 52 lakhs
Real Estate: 2 residential flats and investment in 3 residential open plots
Lump Sum for Retirement Planning: Rs. 40 lakhs
Monthly Rental Income: Rs. 29k
Financial Goals
Retirement: You at 55 years, wife at 45 years
Current Monthly Expenses: Rs. 1 lakh
Post-Retirement Monthly Requirement: Rs. 4 lakhs (considering 7% inflation)
Children's Education and Future Planning: Ongoing investments in PPF and Sukanya Samruddhi Yojana
Analysis and Recommendations
Investment Strategy Review
Diversification: Your portfolio is well-diversified with investments in equities, mutual funds, gold, and real estate. This diversification helps in risk management.

Mutual Fund Investments: Continue with SIPs for long-term growth. Focus on actively managed funds rather than index funds for better potential returns.

Direct Equity: Rs. 57 lakhs in direct equity is significant. Ensure it's diversified across sectors to minimize risk.

Gold: Rs. 10 lakhs in gold adds stability to your portfolio. Consider holding it as a long-term investment.

Lump Sum Investment
Additional Retirement Planning: Invest the Rs. 40 lakhs lump sum in a mix of debt and equity mutual funds. This helps in balancing risk and ensuring steady growth.
Debt Management
Home and Car Loans: Ensure EMIs are manageable within your current income. Focus on pre-paying high-interest loans if possible.
Children's Future Planning
Education Planning: Continue investments in Sukanya Samruddhi Yojana and PPF. These provide stable returns and tax benefits.
Retirement Planning
NPS and VPF: Your contributions to NPS and VPF are excellent for retirement planning. They offer tax benefits and steady returns.

Projected Expenses: With a post-retirement monthly requirement of Rs. 4 lakhs, ensure your corpus is sufficient to generate this income.

Life Insurance
Term Plans: Your term plans are adequate. Ensure they are reviewed periodically to match your needs.
Emergency Fund
Liquidity: Maintain an emergency fund of at least 6-12 months of expenses in liquid assets like savings accounts or liquid mutual funds.
Review and Rebalance
Periodic Review: Review your portfolio every 6-12 months. Rebalance if needed to align with your financial goals and risk tolerance.
Final Insights
Your current investment strategy is robust and well-diversified. By continuing your disciplined approach and making periodic adjustments, you can achieve your financial goals, including early retirement and securing your children's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

I have approx. 50L annul package and currently invest 85K in MF SIPs. 20K in BlueChip, 30K in Index Fund, 15 in Small Cap and 20 in MultiCap. Kindly advise, if I should allocate more funds to MF SIPs or any change in the category allocation?

Ans: Hi,
Assuming that your in hand annual compensation is 50 lacs, 85k SIP looks smaller if we go by the expenses and savings ratio that is advisable. This might point out that there might be debt repayments that might be taking a chunk out of your income? You may have to relook on how to reduce your expenses gradually to build sufficent long term wealth. A 1-1.5 lacs SIP per month for the current compensation levels, looks suitable and which can build long term welath. The portfolio mix depends on your risk appetite. Assuming that you have a higher risk appetite, you may look at 25% largecaps, 25% flexicaps, 30% Midcaps & 20% smallcaps through the SIP mode. It is advisable that you do a detailed financial planning to assess where you stand against your future goals.
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

(more)

Money

Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Question by MOHAN - Jul 26, 2024Hindi

40 lacs income p.a. which regime is better

Ans: Hi,
For the income mentioned by you, assuming that one takes all the deductions available under old tax regime, the old tax regime allows you to save some tax but not by a huge margin. Also, please note that going forward the Government might make more changes in the new tax regime to benefit larger interests. I hope this answers your question
Best Regards,
Anil Rego,
Founder & CEO,
Right Horizons

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 19, 2024Hindi

I am 46 years old. My wife is non-working and i have 14 yr old and 3 yr old kids. As a single earner, my take home salary is about 170k per month. I will try my best to remain emplyable and grow (10% annual growth in income) for the next 10 years. At present, my home loan left is 14 lacs. No other loan. I have FDs worth 16 lacs. This is my emergency fund. I also have around 12 lacs of PF balance. I have sufficient term insurance policy and family medical policy. I can save around 1 lac per month with 10% annual increase for next 10 years. I have the following challenging goals and i need advice on how these can be ahieved: 1. Retirement pension monthly for survival at 50k per month with inflation accounted, for 30 years. 2. After 4 years, my older kid will need total of around 30lacs spread out in 4 years for higher studies. 3. At age 60, my younger son will be 18 years and he will need similar funds for his graduation.

Ans: Let's address your goals with a structured financial plan. Your disciplined savings and investments can help you achieve your objectives.

Goal 1: Retirement Pension
Current Situation:

Age: 46 years
Retirement Goal: Rs 50,000 per month
Time Horizon: 14 years
Inflation Consideration: Essential for 30 years
Action Plan:

Increase Savings: Save Rs 1 lakh per month with a 10% annual increase.
Investment Strategy: Focus on a mix of debt and equity funds. Actively managed funds can provide better returns than index funds.
Diversification: Invest in a balanced portfolio to mitigate risks.
Review Regularly: Adjust the portfolio based on market conditions and personal needs.
Goal 2: Older Child's Education
Current Situation:

Older Child’s Age: 14 years
Education Fund Needed: Rs 30 lakhs in 4 years
Action Plan:

Systematic Investments: Start monthly investments in actively managed equity and hybrid funds.
Short-Term Goals: Focus on less volatile, medium-term funds for safety and growth.
Monitor Progress: Ensure investments are on track to meet the education expenses.
Goal 3: Younger Child's Education
Current Situation:

Younger Child’s Age: 3 years
Education Fund Needed: Rs 30 lakhs at age 18
Action Plan:

Long-Term Investments: Allocate funds in equity and diversified funds.
Regular Contributions: Continue monthly investments with annual increases.
Portfolio Growth: Focus on high-growth potential funds for long-term returns.
Managing Home Loan and Emergency Fund
Current Situation:

Home Loan Left: Rs 14 lakhs
FDs as Emergency Fund: Rs 16 lakhs
PF Balance: Rs 12 lakhs
Action Plan:

Home Loan Repayment: Consider prepaying the loan from the emergency fund. This reduces interest burden.
Emergency Fund: Maintain a balance in FDs. Keep 6 months' expenses in liquid form.
PF Utilization: Let PF grow for retirement benefits.
Insurance and Savings
Current Situation:

Term Insurance: Sufficient
Medical Insurance: Family policy in place
Action Plan:

Review Coverage: Ensure insurance coverage is adequate for future needs.
Increase Savings: Allocate surplus savings to investment plans for higher returns.
Detailed Financial Plan
Monthly Savings Allocation:

Equity Funds: Allocate a significant portion to equity funds for long-term growth.
Debt Funds: Invest in debt funds for stability and safety.
Balanced Funds: Mix of equity and debt for balanced risk.
Yearly Review:

Performance Monitoring: Regularly check the performance of investments.
Adjust Strategy: Make necessary adjustments based on market trends and personal milestones.
Disadvantages of Index Funds
Limited Returns: Index funds often provide average returns.
Lack of Flexibility: They follow the index and cannot outperform the market.
Actively Managed Funds Benefits: Actively managed funds offer better returns and flexibility.
Disadvantages of Direct Funds
Complex Management: Direct funds require continuous monitoring.
Professional Guidance: Regular funds through a CFP offer expert advice and management.
Convenience: Regular funds provide ease of investment with professional oversight.
Final Insights
Disciplined Investing: Consistent savings and investment are key to achieving your goals.
Professional Advice: Leveraging the expertise of a Certified Financial Planner ensures better financial planning.
Future Planning: Always plan for future uncertainties and keep your goals in sight.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 18, 2024Hindi

My portfolio is given below. SIP - SBI Small cap fund & SBI Flexicap fund - 25000 monthly each, Axis Nifty 100 Index Fund - 40000 monthly, Nippon India Small Cap 250 Index fund - 25000 monthly. I started investing from 2017 with 2000 SIP in SBI Small cap and increased over the years as my salary increases. My current corpus is around 35Lakh. Your advice on this. Apart from this I am invested in physical gold for around 10Lakhs. I am working in UAE.

Ans: Overview of Your Current Portfolio
You have a well-structured portfolio, with a mix of equity mutual funds and physical gold. Your current investments include:

SBI Small Cap Fund: Rs. 25,000 monthly SIP
SBI Flexicap Fund: Rs. 25,000 monthly SIP
Axis Nifty 100 Index Fund: Rs. 40,000 monthly SIP
Nippon India Small Cap 250 Index Fund: Rs. 25,000 monthly SIP
Physical Gold: Rs. 10 lakhs
You started investing in 2017 and have built a corpus of around Rs. 35 lakhs.

Analysis of Your Portfolio
Equity Mutual Funds
Diversification: Your portfolio has a good mix of large-cap, flexicap, and small-cap funds. This provides diversification across different market capitalizations.

Growth Potential: Small-cap and flexicap funds have high growth potential. However, they are also volatile.

Index Funds: You have a significant portion in the Axis Nifty 100 Index Fund. While index funds offer lower management fees, they may not outperform actively managed funds.

Physical Gold
Hedge Against Inflation: Gold serves as a good hedge against inflation and adds stability to your portfolio.

Liquidity: Physical gold is less liquid compared to other financial assets.

Recommendations for Improvement
Review Fund Allocation
Reduce Overlap: Ensure there is no significant overlap between the funds in terms of stock holdings.

Balance Between Active and Passive Funds: Consider balancing the allocation between actively managed funds and index funds. Actively managed funds have the potential to outperform the market, especially in emerging markets like India.

Increase Diversification
Add Debt Funds: To reduce volatility, consider adding debt funds to your portfolio. Debt funds provide stability and can protect your corpus during market downturns.

International Funds: Consider including international mutual funds. This adds geographical diversification and can hedge against domestic market risks.

Rebalance Regularly
Periodic Rebalancing: Rebalance your portfolio every 6-12 months. This ensures your investments align with your risk tolerance and financial goals.
Additional Investment Strategies
Emergency Fund
Maintain Liquidity: Ensure you have an emergency fund equivalent to 6-12 months of expenses. This should be kept in liquid assets like savings accounts or liquid funds.
Goal-Based Investing
Define Goals: Align your investments with specific financial goals, such as retirement, buying a house, or children's education.

Time Horizon: Match your investment choices with the time horizon for each goal. Short-term goals should have more conservative investments.

Final Insights
Review and Adjust: Regularly review your portfolio and make adjustments as needed. Stay informed about market trends and changes in your financial situation.

Seek Professional Advice: Consider consulting a Certified Financial Planner to tailor the investment strategy to your specific needs.

Focus on Long-Term Growth: Keep a long-term perspective and avoid making impulsive decisions based on short-term market movements.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Sivakumar - Jul 20, 2024Hindi

Dear Sir, Education Loan Interests vary from bank to bank or it is educational institute wise vary? Kindly clarify?

Ans: Education loan interest rates vary by bank. Each bank sets its own rates based on policies and market conditions.

Interest rates can also vary depending on the type of educational institute. Loans for premier institutes may have lower rates due to higher perceived creditworthiness.

It’s advisable to compare different banks and their offerings. This will help you find the best rate and terms.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 20, 2024Hindi

I am due to retire on Jan2025.At present i hav got 25 lakhs rupees as liquid cash.i would like to invest this amt for 4 to 5 years.which is the good investment plan for me.

Ans: You are set to retire in January 2025 and have Rs. 25 lakhs as liquid cash. Investing this amount wisely is crucial to ensure financial stability and growth over the next 4 to 5 years. Here is a structured approach to help you invest effectively.

Assessing Your Investment Goals
Time Horizon: 4 to 5 years
Risk Tolerance: Moderate, as you are nearing retirement
Objective: Capital preservation with reasonable growth
Recommended Investment Options
Balanced Mutual Funds
Description: These funds invest in a mix of equity and debt.
Benefits: They offer balanced risk and return, making them suitable for your time horizon.
Suggested Allocation: Allocate 50% of your investment to balanced mutual funds.
Debt Mutual Funds
Description: These funds primarily invest in fixed-income securities.
Benefits: They provide stable returns with lower risk compared to equity funds.
Suggested Allocation: Allocate 30% of your investment to debt mutual funds.
Fixed Deposits (FDs)
Description: Bank FDs offer fixed returns over a specified period.
Benefits: They are safe and provide assured returns.
Suggested Allocation: Allocate 10% of your investment to fixed deposits.
Gold
Description: Investing in gold, through gold ETFs or sovereign gold bonds, can be a good hedge against inflation.
Benefits: Gold tends to hold its value over time.
Suggested Allocation: Allocate 10% of your investment to gold.
Portfolio Allocation Example
Balanced Mutual Funds: Rs. 12.5 lakhs
Debt Mutual Funds: Rs. 7.5 lakhs
Fixed Deposits: Rs. 2.5 lakhs
Gold: Rs. 2.5 lakhs
Steps to Implement Your Investment Plan
Research and Select Funds: Choose well-performing balanced and debt mutual funds with a good track record.
Diversify Within Asset Classes: Within each category, select multiple funds to spread risk.
Monitor Performance: Regularly review the performance of your investments and make adjustments if necessary.
Consult a Certified Financial Planner: For personalized advice tailored to your specific needs.
Final Insights
Focus on Stability: Given your short investment horizon, prioritise stability and moderate growth.
Avoid High-Risk Investments: Steer clear of high-risk investments like direct equity or volatile sectors.
Plan for Liquidity: Ensure that a portion of your investments is easily accessible in case of emergencies.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 22, 2024Hindi

Hi , Im in 30's Haven't started investing. Planning to invest , pls suggest a good platform.. I want to start investing for long term plans for bettee return... Will try to soare atleast 15k from salary to saving. Pls advice some better option for boy child investment, retirements fund, and also some short term investment (5-8 Yrs) . Thank you

Ans: Monthly Investment Budget
Plan to invest Rs. 15,000 monthly from your salary.
Long-Term Investment Options
Equity Mutual Funds
Equity Mutual Funds are ideal for long-term growth. They invest in stocks of companies. They offer high returns over time. Consider investing a portion of your budget here.

Public Provident Fund (PPF)
PPF is a safe long-term investment. It offers tax benefits and assured returns. A portion of your monthly investment can go into PPF.

Investment for Boy Child
Child Plans
Child Plans are designed for a child's future. They provide lump sum amounts at different stages of a child's life. They can help cover education and other expenses.

Sukanya Samriddhi Yojana (SSY)
SSY is a government scheme for girl children. If you have a girl child, invest here. It offers high interest rates and tax benefits.

Balanced Funds
Balanced Funds mix equity and debt. They offer moderate risk and returns. They are suitable for a child's education fund.

Retirement Fund
National Pension System (NPS)
NPS is a government-backed retirement plan. It offers tax benefits and market-linked returns. A portion of your budget can go into NPS.

Employees' Provident Fund (EPF)
If you are salaried, contribute to EPF. It offers a safe way to save for retirement.

Short-Term Investment Options (5-8 Years)
Debt Funds
Debt Funds are low risk and provide stable returns. They invest in fixed income securities. They are suitable for short-term goals.

Fixed Deposits (FD)
FDs are a safe investment. They offer fixed returns over a period. You can ladder your FDs for better liquidity.

Recurring Deposits (RD)
RDs are like FDs but allow monthly contributions. They are suitable for disciplined savings.

Benefits of Actively Managed Funds
Professional Management
Actively Managed Funds are managed by experts. They aim to outperform the market.

Higher Returns Potential
These funds often deliver better returns than index funds. They adapt to market conditions.

Disadvantages of Index Funds
Limited Flexibility
Index Funds follow the market. They do not adapt to market changes.

No Active Management
They lack professional management. This limits their growth potential.

Disadvantages of Direct Funds
Lack of Guidance
Direct Funds lack professional advice. This can be challenging for investors.

Time-Consuming
Managing direct funds requires time and knowledge. This may not suit everyone.

Final Insights
Start with a diversified portfolio. Use equity funds for long-term growth. Invest in child plans and balanced funds for your boy's future. Use NPS and EPF for retirement. Choose debt funds and FDs for short-term goals. Regularly review and adjust your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

Hi I am 40 year old married with no kids and no loans. I have a house in a tier 2 city co owned with my brother. I plan to buy a house at 15-20 l in tier 2 city. Currently I have 98l in savings in fd, stocks, ppf, etc. I am earning 1l per month. I want to retire early. How much money should I save to retire?

Ans: Assessing Your Financial Situation
You are 40 years old, married, with no kids and no loans. You co-own a house in a tier 2 city with your brother. You plan to buy another house worth Rs. 15-20 lakhs in a tier 2 city. You have Rs. 98 lakhs in savings across FD, stocks, PPF, etc., and you earn Rs. 1 lakh per month. You want to retire early. Let’s evaluate how you can achieve this goal.

Estimating Retirement Corpus
Understanding Your Expenses
Current Expenses: Calculate your monthly and annual expenses.
Future Inflation: Account for inflation, which will increase your expenses over time.
Lifestyle: Consider the lifestyle you want during retirement.
Desired Corpus
Monthly Income: Determine how much monthly income you’ll need during retirement.
Life Expectancy: Plan for 20-30 years post-retirement.
Annual Withdrawal: Estimate the annual withdrawal needed from your retirement corpus.
Building Your Retirement Corpus
Existing Savings
Savings of Rs. 98 Lakhs: This is a solid start towards your retirement corpus.
Diversified Portfolio: Your savings are spread across FD, stocks, PPF, etc.
Investment Strategy
Equity and Debt Mix: Maintain a balanced mix of equity and debt investments.
SIP in Mutual Funds: Continue SIPs in well-performing mutual funds.
PPF: Continue contributions to PPF for steady returns.
Stocks: Invest in fundamentally strong stocks for growth.
Additional Savings
Monthly Savings: Save a portion of your monthly income.
Automated Investments: Set up automated transfers to your investment accounts.
Buying a New House
Budget and Funding
Budget: Your budget for a new house is Rs. 15-20 lakhs.
Funding Source: Use a portion of your savings or liquidate less critical investments.
Impact on Savings
Reduced Savings: Adjust your retirement corpus calculations considering the reduced savings post house purchase.
Rebalance Portfolio: Rebalance your portfolio to maintain the desired mix.
Early Retirement Planning
Setting a Retirement Age
Target Age: Decide on the age by which you want to retire.
Years to Retirement: Calculate the number of years remaining until your target retirement age.
Achieving Financial Independence
Passive Income: Build sources of passive income such as dividends, interest, and rental income.
Emergency Fund: Maintain an emergency fund for unexpected expenses.
Calculating Expected Returns
Investment Growth
Equity Returns: Equity investments may yield 10-12% annually.
Debt Returns: Debt investments may yield 6-8% annually.
Overall Returns: Aim for an average return of 8-10% on your portfolio.
Final Insights
Realistic Goals: Set realistic financial goals and review them periodically.
Professional Guidance: Consult a Certified Financial Planner for personalized advice.
Regular Monitoring: Monitor your investments and make adjustments as needed.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Mihir Tanna |905 Answers |Ask -Follow

Tax Expert - Answered on Jul 26, 2024

Question by BHARAT - Jul 25, 2024Hindi

Hello Mihir Ji, I would like to confirm whether there is any exemption in STCG on sale of equity shares? Like 1.25 Lacs in LTCG

Ans: No, there is no exemption for STCG on STT paid equity shares like LTCG but in case other income is less than basic exemption limit (i.e. 3 lacs new tax regime), basic exemption limit can be used for STCG.

(more)

Money

Mihir Tanna |905 Answers |Ask -Follow

Tax Expert - Answered on Jul 26, 2024

Question by Sunil - Jul 25, 2024Hindi

Is the Ltgc same for commercial property

Ans: Gain from sale of commercial property after using for 24 months is LTCG and taxed @20%. In case of STCG, it is taxed at slab rate applicable to Individual

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jun 03, 2024Hindi

Recently I sold two properties, which are one in joint name with my wife on which I got net 27 lacs (after prepayment of home loan of 27 lac), and another in my wife's name from which we got 10 lacs. Now my queries are: 1. I don't want to buy any property, so how to calculate the capital gain on both properties. By when I have to buy the bond. 2. What could best investment for the balance amount (capital gains bond amt)? (I am 46 years' service personal, in family wife and daughter 15 years in class X, our total monthly income around 1.6 lac. we have saving around 30 lac PF, 1.25 lac PPF, 5 lac NPS, 10 lac MF and 1 lac Shares). This investment for long term, I can take medium risk.

Ans: Property in Joint Name
Net Proceeds: Rs. 27 lacs
Prepaid Home Loan: Rs. 27 lacs
Calculate capital gains on your share.
Property in Wife's Name
Net Proceeds: Rs. 10 lacs
Calculate capital gains considering her holding period and purchase price.
Capital Gains Bonds Investment
Timeline
You need to invest in capital gains bonds within six months. This helps save on capital gains tax.

Bond Selection
Invest in government-approved capital gains bonds. They offer a safe way to defer taxes.

Best Investment Options for Balance Amount
Diversified Equity Funds
Equity Funds provide long-term growth. They suit your medium risk appetite.

Balanced Advantage Funds
Balanced Funds offer stability and growth. They mix equity and debt for balanced returns.

National Pension System (NPS)
You already have NPS. Consider increasing your contribution. It offers tax benefits and retirement savings.

Public Provident Fund (PPF)
PPF is a safe long-term investment. It offers tax benefits and assured returns. Increase your contributions here.

Benefits of Actively Managed Funds
Professional Management
These funds are managed by experts. They aim to outperform the market.

Higher Returns Potential
Actively managed funds often deliver better returns than index funds.

Disadvantages of Index Funds
Limited Flexibility
Index funds follow the market. They don’t adapt to market changes.

No Active Management
Index funds lack active management. This limits their growth potential.

Disadvantages of Direct Funds
Lack of Guidance
Direct funds lack professional advice. This can be challenging for investors.

Time-Consuming
Managing direct funds requires time and knowledge. This may not suit everyone.

Final Insights
Investing your capital gains wisely is crucial. Use capital gains bonds for tax savings. Diversify your remaining funds in equity, balanced funds, NPS, and PPF. Actively managed funds offer better growth. Avoid index and direct funds due to their limitations. Regularly review and adjust your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jun 19, 2024Hindi

My wife is of 31 years age and currently depositing around 25k monthly in nps as part of her central government job. She will retire at the age of 65 so, can we depend entirely on this nps investment for our retirement? How much return we can expect during our retirement ?

Ans: Your wife is 31 years old and contributes Rs. 25,000 monthly to her NPS. She will retire at 65. Let’s evaluate if NPS alone can support your retirement.

Understanding NPS
Benefits of NPS
Tax Benefits: NPS contributions provide tax deductions.
Market-Linked Returns: NPS invests in equity and debt.
Low Cost: NPS has low fund management charges.
Expected Returns
Equity Allocation: Equity in NPS can offer 10-12% returns.
Debt Allocation: Debt allocation may yield 6-8%.
Overall Returns: Expect 8-10% returns annually.
Projected NPS Corpus
Accumulation Phase
Regular Contributions: Rs. 25,000 monthly until retirement.
Compounded Growth: Funds grow due to compounding.
Estimation: Use conservative growth rate for projections.
Retirement Income
Annuity Purchase
Mandatory Annuity: 40% of NPS corpus goes into an annuity.
Regular Pension: Annuity provides a monthly pension.
Lump Sum Withdrawal
60% Withdrawal: The remaining 60% can be withdrawn.
Tax-Free: This withdrawal is tax-free.
Diversification Strategy
Beyond NPS
PPF: Continue contributions for safe returns.
EPF: Maintain EPF for steady growth.
Mutual Funds: Diversify with equity and debt funds.
Insurance: Ensure adequate health and life coverage.
Expected Retirement Needs
Income Requirements
Inflation Adjustment: Account for rising costs.
Healthcare: Allocate funds for medical expenses.
Lifestyle: Maintain a comfortable lifestyle post-retirement.
Calculating Retirement Corpus
Corpus Size
Monthly Needs: Rs. 50,000 per month post-retirement.
Inflation-Adjusted: Needs will increase with inflation.
Life Expectancy: Plan for 20-25 years post-retirement.
Income Sources
NPS Pension: Regular income from the annuity.
Lump Sum: Withdrawn amount can be invested.
Other Investments: Income from PPF, EPF, and mutual funds.
Final Insights
NPS Alone: NPS is good but not sufficient alone.
Diversify: Invest in PPF, EPF, and mutual funds.
Plan for Inflation: Ensure corpus adjusts for inflation.
Regular Review: Monitor and adjust investments.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jun 08, 2024Hindi

I will retire from my job this dec I have only Rs 35 lacs as provident fund ,what to do to get minimum Rs.10000 monthly from this amount

Ans: You want a monthly income of Rs. 10,000 from Rs. 35 lacs. This requires careful planning.

Safe Withdrawal Rate
A safe withdrawal rate ensures your funds last. Generally, 3-4% annually is safe. This means you should withdraw Rs. 10,000 monthly from your Rs. 35 lacs.

Investment Options
Debt Funds
Debt Funds are low risk. They offer stable returns. Invest a portion here for safety. They provide regular income with capital protection.

Balanced Funds
Balanced Funds mix equity and debt. They offer moderate risk and returns. They balance growth and stability. Invest a portion here for balanced returns.

Senior Citizen Savings Scheme (SCSS)
SCSS is safe for retirees. It offers good returns. You can invest up to Rs. 15 lacs. It provides quarterly interest payouts.

Monthly Income Plans (MIPs)
MIPs are another option. They invest in debt and a bit of equity. They provide monthly income. Invest a portion here for regular returns.

Benefits of Actively Managed Funds
Professional Expertise
Actively Managed Funds are handled by experts. They aim for higher returns. This can help grow your investments.

Flexibility
These funds adjust based on market conditions. This flexibility can be advantageous.

Disadvantages of Index Funds
Limited Growth Potential
Index Funds mirror the market. They don’t aim to outperform. This limits potential growth.

No Active Management
They lack active management. They don’t adjust based on market trends.

Disadvantages of Direct Funds
Lack of Guidance
Direct Funds lack professional advice. You miss out on expert guidance.

Time-Consuming
Managing direct funds requires time. It involves continuous monitoring.

Creating a Diversified Portfolio
Split Your Investment
Debt Funds: 40%
Balanced Funds: 30%
SCSS: 15%
MIPs: 15%
Regular Monitoring
Review your portfolio regularly. Adjust based on performance and needs.

Final Insights
Your provident fund needs careful planning. Diversify your investments. Focus on safety and regular income. Use actively managed funds for better growth. Regularly review and adjust your portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by ABUBAKAR - Jul 07, 2024Hindi

Sir I m 55now I had 30 lacks in my provident fund and 5 lacks ppf and sip of 2 lacks 15000 sip per month salary is 1.10 lacks and having home loan car loan of 20 lacks I m retiring after 5 years I need 50000 per month for my expenses how it can be achieved please help me sir

Ans: You are 55 years old with Rs. 30 lakhs in your provident fund, Rs. 5 lakhs in PPF, and Rs. 2 lakhs in SIP investments. You also have a home and car loan totaling Rs. 20 lakhs. Your monthly salary is Rs. 1.10 lakhs, and you plan to retire in 5 years. You need Rs. 50,000 per month for expenses after retirement.

Strategy for Retirement Planning
Clearing Debts
Home and Car Loan:
Aim to clear these loans before retirement.
Use bonuses, increments, or surplus funds to pay down the principal.
Maximizing Savings
Provident Fund:

Continue contributions to maximize retirement corpus.
Public Provident Fund (PPF):

PPF is a safe investment with tax benefits.
Consider increasing contributions if possible.
Systematic Investment Plans (SIPs):

Maintain or increase SIPs in mutual funds.
Choose funds with good track records for growth.
Investment Options for Retirement
Debt Mutual Funds
Safety and Regular Income:
Invest in debt mutual funds for steady returns.
Ideal for generating regular income with low risk.
Balanced Mutual Funds
Mix of Equity and Debt:
These funds offer growth with moderate risk.
Good for long-term investments and stable returns.
Creating a Retirement Corpus
Monthly Savings and Investments
Consistent Investing:
Save and invest a portion of your monthly salary.
Focus on increasing your retirement corpus.
Diversified Portfolio
Balance Risk and Return:
Diversify your investments across various asset classes.
Include a mix of equity, debt, and balanced funds.
Generating Post-Retirement Income
Systematic Withdrawal Plan (SWP)
Regular Income:
Use SWPs from mutual funds for monthly income.
This provides a fixed amount regularly without depleting capital too quickly.
Monthly Income Plans (MIPs)
Steady Cash Flow:
Invest in MIPs for regular payouts.
These are suitable for generating a steady cash flow post-retirement.
Insurance and Health Cover
Adequate Coverage
Review Insurance:
Ensure your insurance coverage is adequate.
Personal insurance should cover major health expenses.
Health Insurance
Medical Expenses:
Maintain a comprehensive health insurance plan.
It will help manage medical costs post-retirement.
Final Insights
Clear Loans: Aim to pay off your home and car loans before retiring.
Increase Savings: Continue and increase your contributions to provident fund, PPF, and SIPs.
Diversify Investments: Invest in a mix of debt and balanced mutual funds.
Generate Income: Use SWPs and MIPs to generate a steady post-retirement income.
Review Insurance: Ensure you have adequate insurance coverage for unforeseen expenses.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - May 26, 2024Hindi

I forgot to tick Ask Anonymously. Can you consider my earlier question as Anonymous requester Hello Maheshji Love your service. Thank you. Here is my query. I have been in US for about 25 years and 58 years. I am a US citizen and want to retire in India. Here are my sources of income 1. Company pension - $36,000 /year 2. Dividends from Brokerage - $26,000 /year 3. Dividends from 401k (Tax deferred Account) - $23,000/year 4. US Rentals (Cash flow net of Income & Expense) - $27,000/year Expenses 1. I have a paid home in Blore where I plan to stay. I will refurbish for 250K once I retire. I will have utilities + groceries 2. I will need medical insurance for my wife (50 years( and me Assume this will be income every year or will marginally increase except when I turn 65 and later when my wife turns 65, we may start withdrawing social security income if it exists then. Curious, what will be my taxes in India for current financial year for listed income and expense. (I know, I will be taxed in US as well and US/India has DTAA. If you can help in US taxes great. If not, help me with taxes in India alone) Thank you for your service. Regards your reader

Ans: Current Financial Situation
Income Sources
Company Pension: $36,000/year
Brokerage Dividends: $26,000/year
401k Dividends: $23,000/year
US Rentals: $27,000/year
Expenses
Refurbishment of Bangalore home: $250,000
Utilities and Groceries
Medical Insurance for you and your wife
Taxation in India
Income from Company Pension
Your company pension is taxable in India. The tax rate depends on your total income.

Dividends from Brokerage and 401k
Dividends from 401k are taxed in India. The rate is 20% with indexation. Ensure to declare these in your Indian tax returns.

US Rentals
Rental income from abroad is taxable in India. You need to pay tax as per Indian tax laws.

Double Taxation Avoidance Agreement (DTAA)
India and the US have DTAA. It helps avoid double taxation. Declare all income in both countries. You can claim relief under DTAA.

Medical Insurance
Importance
Medical insurance is crucial. It covers unexpected medical expenses.

Options
Many insurance providers offer plans for senior citizens. Choose a comprehensive plan for you and your wife.

Refurbishment Costs
Budgeting
Plan your refurbishment budget. Ensure it fits within your financial capacity. Consider any additional costs that may arise.

Living Expenses
Utilities and Groceries
Estimate your monthly expenses. Factor in inflation and lifestyle changes.

Final Insights
Your income sources are diverse. This provides stability. Plan your taxes to avoid penalties. Focus on budgeting your refurbishment. Choose the right medical insurance. Regularly review your financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

Financial Planning - Need help with my dad's pension. My mom (49y) has around 3L in savings (from my dad's pension) and will be getting 35,000 per month as the pension. How do I go about investing this? This is her savings, so don't want something very risky and we won't need the cash in short term. Let me know the geniuses of the sub. I am thinking a mix of High dividend MFs + Debt bonds on wint wealth. Please do let me know as we need the interest/dividend income every once in a while if not every month. I have a corporate insurance with 5L cover and Personal Insurance with 25L cover which will 3x in 3 years (currently 37.5L + 25L).

Ans: Your mother has Rs. 3 lakhs in savings from your dad's pension and will receive Rs. 35,000 per month as a pension. You want a low-risk investment strategy that generates regular income. Your insurance coverage is adequate, providing an additional safety net.

Investment Strategy
Safety and Stability
For your mother's savings, prioritize safety and stability. Choose investments with low risk but steady returns.

Debt Mutual Funds:

Ideal for conservative investors.
Provide stable returns with lower risk.
High Dividend Mutual Funds:

Offer regular dividend payouts.
Ensure the funds have a good track record.
Monthly Pension Allocation
Use the monthly pension wisely. A portion should be invested, while another should cover regular expenses.

Regular Expenses
Monthly Budget:
Allocate Rs. 35,000 to monthly expenses.
Ensure essential expenses are covered.
Surplus Investment
Systematic Investment Plans (SIPs):
Invest a portion of the pension surplus in SIPs.
Choose balanced funds for moderate growth.
Emergency Fund
Maintain an emergency fund to cover unexpected expenses.

Liquid Funds:
Invest a part of the savings in liquid funds.
Easily accessible in emergencies.
Suggested Investment Mix
Debt Investments
Government Bonds:

Safe and reliable with guaranteed returns.
Suitable for long-term security.
Fixed Deposits (FDs):

Bank FDs offer guaranteed interest rates.
Choose banks with high credit ratings.
High Dividend Mutual Funds
Dividend Yield Funds:
Invest in funds with consistent dividend payouts.
Ensure the portfolio is diversified.
Insurance Considerations
Your insurance coverage is good. Corporate insurance covers Rs. 5 lakhs, and personal insurance covers Rs. 25 lakhs. This will triple in three years, offering Rs. 112.5 lakhs in total. Ensure policies are regularly reviewed to keep up with needs.

Regular Monitoring
Track Investments:

Regularly review the performance of investments.
Adjust the portfolio based on market conditions.
Professional Guidance:

Seek advice from a Certified Financial Planner.
Ensure investments align with financial goals.
Final Insights
Investing your mother’s savings in low-risk options ensures stability. Use a mix of debt and high dividend mutual funds for steady income. Regularly monitor and adjust the investments to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Jinal Mehta |93 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Question by saumya - Jul 25, 2024Hindi

Hello ma'am.. I'm a 33 year old mother of a 2 yr old boy..salary is 12 lac per annum.. never invest in ppf only. Want to save and grow money..how and where to start

Ans: I would suggest that you see meet a financial planner for this purpose. They would assess your risk profile and recommend accordingly.

Ms. Jinal Mehta ,CFP
Founder

www.beyondlearningfinance.com

(more)

Money

Jinal Mehta |93 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Asked by Anonymous - Jul 25, 2024Hindi

Hello sir.i m 38 year old,I want invest in MF/SIP, please suggest what is process,I m interested in SBI Mutual funds,

Ans: You can either do it directly through the fund houses or you may contact any of the mutual fund distributor who can guide you. Since you are just starting off with your investments ,I would suggest you contact a distributor from the AMFI website.

Ms. Jinal Mehta ,CFP
Founder

www.beyondlearningfinance.com

(more)

Money

Jinal Mehta |93 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Question by Kallol - Jul 26, 2024Hindi

I am a government service holder going to retire next year. Can you please suggest how best can I utilize money I am going to get after retirement. Does investing in mutual fund good option.

Ans: Yes. But only mutual funds will not serve your retirement tenure. You will have to add a portfolio of different asset classes as well.

Ms. Jinal Mehta ,CFP
Founder

www.beyondlearningfinance.com

(more)

Money

Mihir Tanna |905 Answers |Ask -Follow

Tax Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

Sir I inherited a plot of land in 2003, which was purchased by my father in 1995. I am planning to sell the plot. My question is whether I will get indexation benefit on LTCG tax or not?

Ans: No, In the Budget Proposal Indexation benefit is removed for property transferred from 23rd July 2024. However, cost of acquition for calculation of capital gain can be FMV as on 1.4.2001 or stamp duty value as on 1.4.2001 (whichever is lower)

(more)

Money

Jinal Mehta |93 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Asked by Anonymous - Jul 26, 2024Hindi

Age 33, Need advise on how manage my finance and improve my wealth, earning 1.5 l per month, own a house worth 50 lakhs, FD of 3 lakhs, SGB 2.00 lakhs, Shares 1.00 lakhs, debt hosing loan 15 lakhs, having health insurance 5.00 lakhs, 2 children one studying 2nd STD and other is 3 yrs old. Need advice on term or retirement insurance needs. And how to invest my salary to accumulate substantial wealth

Ans: I understand retirement planning is important..but looking at the assets and your current situation, i feel that the health insurance is too low..please hike it..you may consider to buy a floater policy as well. Next, I feel that you have no plan for your childrens education. So that should not be ignored.

Ms. Jinal Mehta CFP
Founder

www.beyondlearningfinance.com

(more)

Money

Samraat Jadhav |1893 Answers |Ask -Follow

Stock Market Expert - Answered on Jul 26, 2024

Question by Visu - Jul 25, 2024Hindi

I do not own a house; living in heart of metro city for over 50 years; I am retired, and with no family or financial (loan/EMI) commitment. I do not prefer retirement or living assist pay home available for senior citizen where I may lose my independance and choice of my life. I have given declaration for donation of organs after my death; also I have declared donation of my body to medical college to save creamation expenses and procedure, by not disturbing the others Being a self dependant, I allocate my income, 20% for rent; 15% for food expenses 10% for medical emergency (I have no health issues, not even a diabetic and blood pressure) though my annual medical expenses is ZERO. 25% for travel/Trek (I fond of travelling and exposing to trekking spot like travelling to Himalayas - Rishikesh every year for the laslt 27 years) 15% for local conveyance (like petrol etc)5% for emergency; 5% for insurance premium commitments; 5% for others including donation and pooja etc. anything unutlised is for saving where I donot require to accumulate saving or investment , as it does not require for me to leave a legacy. Please advise, do I need to re-allocate the ratio; all the time we are asking for income and investment, and I am placing this question on expenditure. Though I can understand the expenditure pattern changes according to the taste of the people; and life style; we do not have thumb rule and I request you to kindly suggest if anything is missed out or re-allocate the percentage.

Ans: Thats a great and noble thing you are doing and happy to see that you take care of your health and give importance to fitness, kudos to you on this.
From the allocation side I would suggest you to keep changing your food allocation ratio as this is linked with Inflation you can change this from 15% to 20%. The leftover should go in savings.

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 12, 2024Hindi

Hi, I am 27 years old. I am currently investing total 10k/month in SIP Mutual fund Quant Small Cap --> 5k , HDFC Flexi Cap --> 3k , ICICI Technology Fund --> 2k. I want to increase the investment to 30k/month. Can you help me to decide on the categories for diversifying the portfolio? Other means of saving I am doing is EPF,PPF for retirement, Stocks (current value 2L), FD

Ans: Current Portfolio Overview
Mutual Fund Investments
Rs. 5,000 in Small Cap Fund
Rs. 3,000 in Flexi Cap Fund
Rs. 2,000 in Technology Fund
Other Investments
EPF and PPF for retirement
Rs. 2 lakh in stocks
Fixed Deposit
Diversifying Your Portfolio
Large Cap Funds
Large Cap Funds are a safe option. They invest in top companies with stable performance. Allocating Rs. 8,000/month here can provide stability.

Mid Cap Funds
Mid Cap Funds invest in medium-sized companies with growth potential. They balance risk and reward well. Investing Rs. 6,000/month is advisable.

Debt Funds
Debt Funds are less risky. They provide regular income and capital preservation. You can invest Rs. 5,000/month here.

Balanced or Hybrid Funds
Balanced Funds mix equity and debt. They offer moderate risk with balanced returns. A Rs. 4,000/month investment is suitable.

International Funds
International Funds invest in global markets. They offer diversification beyond domestic markets. Consider Rs. 3,000/month here.

Sectoral or Thematic Funds
Sectoral Funds focus on specific industries. They can be rewarding but risky. A small allocation of Rs. 2,000/month can be beneficial.

Advantages of Actively Managed Funds
Professional Management
Actively Managed Funds are handled by experts. They aim to outperform the market.

Flexibility
These funds adjust based on market conditions. This flexibility can help in uncertain times.

Potential for Higher Returns
They have the potential to deliver better returns than index funds.

Final Insights
Diversifying your investments is key. Spread your money across various categories for balance. Avoid heavy reliance on one type of fund. Review and adjust your portfolio periodically.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money1

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 18, 2024Hindi

I HAVE DSP TAX SAVER & NIPPON TAX SAVER FUND IN MY PORTFOLIO. I STOPPED SIP IN BOTH AN YEAR AGO. AS I DON'T NEED ANY TAX REBATE NOW. BUT I HAVE NOT WITHDRAWN THE AMOUNT INVESTED. IS IT GOOD TO LEAVE THE AMOUNT INVESTED FOR A INDEFINITE PERIOD OR SHOULD I WITHDRAW AND REINVEST THE AMOUNT IN NEW FUNDS. IF YES, PLEASE SUGGEST SOME GOOD FUNDS. JUST FOR YOURINFORMATION, I AM ALREADY INVESTING IN CANARA ROBECO BLUE CHIP. HDFC MID CAP, ICICI VALUE DISCOVERY, PGIM FLEXI CAP FUND.

Ans: Review of Current Tax Saver Funds
You have DSP Tax Saver and Nippon Tax Saver funds in your portfolio. You stopped SIPs a year ago but haven't withdrawn the invested amount. It's good to evaluate if you should keep these investments or reinvest them.

Evaluation of Keeping Investments
Performance Review:

Assess the performance of these funds.
Check their returns compared to benchmarks.
If they are performing well, it might be wise to keep them.
Fund Objectives:

These are tax-saving funds (ELSS) with a lock-in of three years.
After the lock-in, you can redeem anytime.
If they align with your long-term goals, consider keeping them.
Reinvestment Consideration
If you decide to withdraw, reinvesting in better-performing funds could be beneficial.

Benefits of Redeeming and Reinvesting
Optimizing Returns:
By switching to high-performing funds, you may get better returns.
Portfolio Realignment:
It allows you to realign your portfolio based on current market conditions and your goals.
Suggested Fund Categories
Since you are already investing in equity and mid-cap funds, consider these categories:

Diversified Equity Funds
Flexi Cap Funds:
These funds invest in large, mid, and small-cap stocks.
They provide balanced exposure to different market segments.
Large Cap Funds
Stability and Growth:
Large-cap funds offer stability with reasonable growth.
They invest in well-established companies.
Multi Cap Funds
Diversified Approach:
Multi cap funds invest across market capitalizations.
They offer a diversified approach with balanced risk.
Actively Managed Funds vs. Index Funds
Actively managed funds have the potential to outperform the market. Fund managers actively select stocks to maximize returns. They provide flexibility in changing market conditions.

Direct Funds vs. Regular Funds
Disadvantages of Direct Funds
Limited Guidance:
Direct funds lack professional advice.
You need to manage investments yourself.
Benefits of Regular Funds
Professional Management:
Regular funds through an MFD with a CFP credential offer expert guidance.
They help in selecting the right funds based on your goals.
Your Current Investments
You are already investing in Canara Robeco Blue Chip, HDFC Mid Cap, ICICI Value Discovery, and PGIM Flexi Cap Fund.

Portfolio Review
Canara Robeco Blue Chip:

Focuses on large-cap stocks.
Offers stability and moderate growth.
HDFC Mid Cap:

Invests in mid-cap stocks.
Higher growth potential but with more risk.
ICICI Value Discovery:

Focuses on undervalued stocks.
Potential for high returns with moderate risk.
PGIM Flexi Cap Fund:

Diversified across market caps.
Balanced risk and growth.
Final Insights
Evaluate the performance of DSP Tax Saver and Nippon Tax Saver.
If they perform well, consider keeping them.
If not, reinvest in diversified equity, large cap, or multi cap funds.
Continue leveraging actively managed and regular funds for better guidance.
Regularly review and realign your portfolio to meet your financial goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Pankaj - Jul 26, 2024Hindi

Hi Ramalingam Sir, Hope you doing great and healthy. Sir, I am 34 year old and having 2 daughter 7 year old and 6 months old. My house hold (me and spouse) income is 1 lakh 30k in hand. My monthly expenses are around 35000 and school expenses are 20000 quarterly. I have monthly EMI of 50000 which will be ending on July-25. I have a land worth 31 lakh, and investing 5k monthly in PPF. I have term insurance of 1cr. I want to plan my financial in systematic way. I have surplus of 10k more monthly which I have to invest, please suggest any Mutual Fund in 60% equity and 40% debt. I have a future goal in 2026 of building my own home on land I purchased with construction loan. Also I want to build some corpus for both daughters education. Please help me how I can plan to meet a good financial life.

Ans: Current Financial Overview
You have a stable household income of Rs. 1,30,000 per month. Your monthly expenses are Rs. 35,000, with quarterly school expenses of Rs. 20,000. You have a significant EMI of Rs. 50,000, which will end in July 2025. You invest Rs. 5,000 in PPF monthly and have a term insurance of Rs. 1 crore. You own land worth Rs. 31 lakhs and have an additional Rs. 10,000 monthly for investment.

Financial Goals
Build a home on your land by 2026.
Create a corpus for your daughters' education.
Systematically invest the surplus Rs. 10,000.
Expense Management
Your expenses are well-managed, but optimizing them can provide more room for savings. Review your expenses periodically and adjust where possible. Consider small lifestyle changes that can help reduce costs without impacting your quality of life.

Investment Strategy
Public Provident Fund (PPF)
You are already investing in PPF, which is a good long-term, tax-saving investment. Continue this as it provides a secure and tax-efficient growth for your funds.

Mutual Funds: Equity and Debt Allocation
For your surplus Rs. 10,000, investing in a balanced mutual fund with a 60% equity and 40% debt allocation is wise. This provides growth potential with moderate risk.

Equity Component (60%):

Invest in diversified equity mutual funds.
Focus on funds with a track record of consistent performance.
This portion will help in wealth creation over the long term.
Debt Component (40%):

Invest in debt mutual funds for stability and regular income.
These funds have lower risk and provide steady returns.
They will balance the volatility of the equity portion.
Home Construction Goal
You aim to build a home by 2026. Start planning for the construction loan early. Ensure you have a clear budget and timeline. Keep a portion of your savings in liquid assets for this purpose, so you can access funds quickly when needed.

Children's Education Fund
To build a corpus for your daughters' education, start a dedicated investment plan.

Systematic Investment Plans (SIPs):
Allocate a portion of your surplus to equity mutual funds via SIPs.
SIPs provide the benefit of rupee cost averaging and disciplined investing.
Consider child-specific mutual funds with a mix of equity and debt.
Insurance Coverage
Your term insurance of Rs. 1 crore is a good safety net. Review your insurance needs periodically to ensure it covers your growing responsibilities.

Emergency Fund
Maintain an emergency fund to cover at least 6 months of your household expenses. This fund should be easily accessible and kept in a savings account or liquid fund.

Regular Monitoring and Review
Track Your Investments:

Regularly review your investment portfolio.
Ensure your investments align with your financial goals.
Financial Health Check:

Conduct an annual financial health check.
Adjust your investments based on market conditions and personal circumstances.
Tax Planning
Leverage tax-saving instruments like PPF, ELSS (Equity Linked Savings Scheme), and National Pension System (NPS) to reduce your taxable income. Proper tax planning can enhance your savings and investments.

Final Insights
Your financial foundation is strong. By strategically investing your surplus and planning for future goals, you can achieve financial security and growth. Regularly monitor and adjust your plan to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Pankaj - Jul 26, 2024Hindi

rediff.com Rediff Gurus Logo Hi Pankaj Sharma | Sign Out HealthHealth MoneyMoney RelationshipRelationship CareesCareer Ask your questions about health, money, relationship or careers here Ask Anonymously You posted: Hi Ramalingam Sir, Hope you doing great and healthy. Sir, I am 34 year old and having 2 daughter 7 year old and 6 months old. My house hold (me and spouse) income is 1 lakh 30k in hand. My monthly expenses are around 35000 and school expenses are 20000 quarterly. I have monthly EMI of 50000 which will be ending on July-25. I have a land worth 31 lakh, and investing 5k monthly in PPF. I have term insurance of 1cr. I want to plan my financial in systematic way. I have surplus of 10k more monthly which I have to invest, please suggest any Mutual Fund in 60% equity and 40% debt. I have a future goal in 2026 of building my own home on land I purchased with construction loan. Also I want to build some corpus for both daughters education. Please help me how I can plan to meet a good financial life.

Ans: Current Financial Overview
You have a stable household income of Rs. 1,30,000 per month. Your monthly expenses are Rs. 35,000, with quarterly school expenses of Rs. 20,000. You have a significant EMI of Rs. 50,000, which will end in July 2025. You invest Rs. 5,000 in PPF monthly and have a term insurance of Rs. 1 crore. You own land worth Rs. 31 lakhs and have an additional Rs. 10,000 monthly for investment.

Financial Goals
Build a home on your land by 2026.
Create a corpus for your daughters' education.
Systematically invest the surplus Rs. 10,000.
Expense Management
Your expenses are well-managed, but optimizing them can provide more room for savings. Review your expenses periodically and adjust where possible. Consider small lifestyle changes that can help reduce costs without impacting your quality of life.

Investment Strategy
Public Provident Fund (PPF)
You are already investing in PPF, which is a good long-term, tax-saving investment. Continue this as it provides a secure and tax-efficient growth for your funds.

Mutual Funds: Equity and Debt Allocation
For your surplus Rs. 10,000, investing in a balanced mutual fund with a 60% equity and 40% debt allocation is wise. This provides growth potential with moderate risk.

Equity Component (60%):

Invest in diversified equity mutual funds.
Focus on funds with a track record of consistent performance.
This portion will help in wealth creation over the long term.
Debt Component (40%):

Invest in debt mutual funds for stability and regular income.
These funds have lower risk and provide steady returns.
They will balance the volatility of the equity portion.
Home Construction Goal
You aim to build a home by 2026. Start planning for the construction loan early. Ensure you have a clear budget and timeline. Keep a portion of your savings in liquid assets for this purpose, so you can access funds quickly when needed.

Children's Education Fund
To build a corpus for your daughters' education, start a dedicated investment plan.

Systematic Investment Plans (SIPs):
Allocate a portion of your surplus to equity mutual funds via SIPs.
SIPs provide the benefit of rupee cost averaging and disciplined investing.
Consider child-specific mutual funds with a mix of equity and debt.
Insurance Coverage
Your term insurance of Rs. 1 crore is a good safety net. Review your insurance needs periodically to ensure it covers your growing responsibilities.

Emergency Fund
Maintain an emergency fund to cover at least 6 months of your household expenses. This fund should be easily accessible and kept in a savings account or liquid fund.

Regular Monitoring and Review
Track Your Investments:

Regularly review your investment portfolio.
Ensure your investments align with your financial goals.
Financial Health Check:

Conduct an annual financial health check.
Adjust your investments based on market conditions and personal circumstances.
Tax Planning
Leverage tax-saving instruments like PPF, ELSS (Equity Linked Savings Scheme), and National Pension System (NPS) to reduce your taxable income. Proper tax planning can enhance your savings and investments.

Final Insights
Your financial foundation is strong. By strategically investing your surplus and planning for future goals, you can achieve financial security and growth. Regularly monitor and adjust your plan to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Moneywize |125 Answers |Ask -Follow

Financial Planner - Answered on Jul 26, 2024

Asked by Anonymous - Jul 23, 2024Hindi

I am NRI with salary of Rs 50 lakh per annum, having savings of Rs 1.8 cr out of which Rs 70 lakh are invested in alternate investment plan which will be matured by 2025. I also have SIP of Rs 1 lakh per month in six different funds, Rs 75 lakh in equities, Rs 50 lakh in FDs which earns 6.75 per cent. I have Rs 20 lakh as emergency liquid funds in savings accounts of various banks. I also have 200,000 US dollars as savings in my overseas account. I am looking for a monthly income of 10 lakh after five years. How shall I go about my investments to meet my goals five years later.

Ans: Strong Financial Position: You have a substantial income, significant savings, and a diversified investment portfolio. This is an excellent foundation to achieve your goal of a Rs 10 lakh monthly income in five years.

Key Considerations:

• Risk Tolerance: Your comfort level with market fluctuations will determine the asset allocation in your portfolio.
• Tax Implications: As an NRI, understanding the tax implications of your investments is crucial. Consider consulting a tax advisor.
• Inflation: Your desired income of Rs 10 lakh per month in five years should account for inflation.

Building a Strategy:

1. Maximise Returns on Existing Investments:

• Review SIPs: Ensure your SIPs are aligned with your risk profile and long-term goals. Consider consolidating them into fewer funds for better management.
• Equities: Given your long-term horizon, continue holding your equity investments. Rebalancing periodically based on market conditions can optimize returns.
• FDs: While FDs provide stability, consider exploring higher-yielding alternatives like debt mutual funds or corporate bonds for a portion of your FD investments.

2. Leverage the Maturing Alternative Investment:

• Strategic Allocation: Use the Rs 70 lakh maturing in 2025 wisely. Consider reinvesting a portion in equity-oriented funds for growth and another part in debt or hybrid funds for income generation.
• Diversification: Spread the amount across different asset classes to manage risk.

3. Increase Monthly Income Generation:

• Systematic Withdrawal Plan (SWP): Once you have a substantial corpus, consider starting an SWP from your equity and debt funds to generate regular income.
• Rental Income: If feasible, explore real estate investments for rental income.
• Dividend-Paying Stocks: Invest in stocks that offer regular dividends to supplement your income.

4. Optimise Overseas Savings:

• Currency Hedging: Consider hedging your USD savings against rupee depreciation to protect your wealth.
• Global Investment Options: Explore investment opportunities in your country of residence if they offer higher returns.

5. Regular Review and Adjustments:

• Market Dynamics: Monitor market conditions and adjust your portfolio accordingly.
• Financial Goals: Reassess your financial goals periodically and make necessary changes to your investment strategy.

Potential Investment Avenues

• Equity Mutual Funds: For long-term growth.
• Debt Mutual Funds: For regular income and capital preservation.
• Hybrid Funds: A balance of equity and debt for moderate risk and return.
• Real Estate: For rental income and potential appreciation.
• Annuities: For guaranteed income post-retirement.

Disclaimer: This information is general in nature and should not be considered as financial advice. It's essential to consult with a financial advisor to tailor a strategy that aligns with your specific financial situation and goals.

By following a disciplined investment approach and regularly reviewing your portfolio, you can increase your chances of achieving your goal of a Rs 10 lakh monthly income in five years.

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Faisal - Jul 20, 2024Hindi

I have a stock portfolio of 8 cr nheritanced from my father, please adivse if i sell or keep it, i would like to sell n play safe n invest in fd n earn monthly interest, is it a good strategy, fyi i also work n get a monthly salary of 5lkhs, my goal is to reitre with 10 cr liquid cash plus some passive income

Ans: Current Financial Situation
Stock Portfolio: Rs 8 crore inherited from your father.

Monthly Salary: Rs 5 lakhs.

Retirement Goal: Retire with Rs 10 crore liquid cash and passive income.

Evaluating Your Strategy
Risk Appetite: You prefer playing safe. Understandable, but let's explore better options.

Fixed Deposits (FDs): They offer safety but low returns. Over time, inflation will erode your purchasing power.

Diversified Approach
Balanced Portfolio: A mix of equity and debt can provide better returns while managing risk.

Mutual Funds: Consider investing in mutual funds. They offer diversification and professional management.

Disadvantages of Fixed Deposits
Low Returns: FDs provide lower returns compared to other investments like equity.

Inflation Impact: Returns may not keep up with inflation. Your purchasing power decreases over time.

Advantages of Mutual Funds
Higher Returns: Equity mutual funds can offer higher returns over the long term.

Diversification: Mutual funds spread risk across various sectors and companies.

Professional Management: Managed by experienced fund managers.

Active Management Over Index Funds
Actively Managed Funds: They aim to outperform the market. Provide higher returns with professional oversight.

Index Funds: Simply replicate market indices. May not perform well in all market conditions.

Steps to Take
Consult a Certified Financial Planner: Get a professional assessment of your portfolio. They can guide you in consolidating and reinvesting.

Gradual Reinvestment: Slowly reinvest your stock portfolio into mutual funds. Ensure a balanced mix of equity and debt funds.

Maintaining Passive Income
Systematic Withdrawal Plans (SWP): Mutual funds offer SWPs. They provide regular income while keeping your principal invested.

Building the Retirement Corpus
Regular Contributions: Continue saving and investing a portion of your salary.

Review and Adjust: Periodically review your investments. Make necessary adjustments based on market conditions and personal goals.

Final Insights
Balanced Approach: Combining equity and debt provides better returns and safety.

Professional Guidance: Consult a Certified Financial Planner for a tailored strategy.

Long-Term Perspective: Focus on long-term growth and stability for your retirement corpus.

Inflation Protection: Ensure your investments can outpace inflation to maintain purchasing power.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by radhakrishna - Jul 20, 2024Hindi

sir I have purchased site maesuring 40x60 ft in 2013 for Rs 10 lakhsand consructed a house in 2013 incurring 20 lakhs ,with following all rules by the local authority by paying all the taxes.0n 23.4.2023 i have sold the house for 60 lakhs.on 28.4.2023 i have purchased site for Rs 23lakhs without depositing the amount in capial gain account.kindy advice me whether i can claiim capital gain for purchased site as per sectio 54 of income tax.i do not have any docuentary proof for amount incurred for house construction and can i claim house improvement as capital gain exemptions.thank you sir.hope you will reply at an earliest.Iam a senior sitizen and an agriculrist

Ans: Based on the information you've provided, here's a breakdown of your situation:

Sale of Residential Property: You sold your house on 23.04.2023 for Rs. 60 lakhs.
Purchase of New Property: You purchased a new site on 28.04.2023 for Rs. 23 lakhs.
Capital Gains: You potentially have a long-term capital gain from the sale of your house.
Documentation: You lack documentary proof for the construction cost of your house.
Potential Issues and Considerations

Capital Gains Exemption Under Section 54:

To claim exemption under Section 54, you generally need to invest the capital gains in another residential property within a specified timeframe.
While you purchased a new site, it's not a residential property yet. You would need to construct a house on it within the prescribed time limit to qualify for the exemption.
The amount invested in the new property should generally be equal to or more than the capital gains to claim full exemption.
Proof of Construction Cost:

Lack of documentary proof for construction costs might be a challenge. You may need to explore alternative evidence or methods to substantiate the expenditure.
Consider consulting with a tax professional to discuss potential options and strategies.
Timelines:

The specific timelines for investing the capital gains in a new residential property under Section 54 are crucial. Ensure you comply with these requirements.
Recommendations

Consult a Tax Professional: Given the complexity of the matter and the potential implications, seeking expert advice is highly recommended.
Gather Relevant Documents: Collect all available documents related to the sale of your house, purchase of the new site, and any construction-related expenses.
Explore Alternatives: If claiming exemption under Section 54 is not feasible, consider other potential tax-saving options.
Act Promptly: Timelines for claiming exemptions and potential tax implications are important. Don't delay in seeking professional guidance.

It's crucial to consult with a chartered accountant or tax expert for personalized advice based on your specific circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 19, 2024Hindi

I'm 34 years old and earning around 1.5 Lakhs per month. My mutual fund portfolio is 1.5 crore mostly equity based. I have 10 lakhs in PPF. I want to retire at 40. What's the decent amount for me to retire?

Ans: Current Financial Situation
Age: 34 years old.

Monthly Income: Rs 1.5 lakhs.

Mutual Fund Portfolio: Rs 1.5 crore, mostly in equity.

PPF: Rs 10 lakhs.

Retirement Goal: Age 40.

Assessing Retirement Needs
Retirement Duration: If you retire at 40, you need funds to sustain for potentially 40-50 years.

Living Expenses: Estimate your monthly expenses post-retirement. Consider inflation, healthcare, and lifestyle costs.

Inflation: Account for inflation. The cost of living will rise over the years.

Estimating Retirement Corpus
Current Expenses: Assume your monthly expenses are Rs 1 lakh (adjust based on your lifestyle).

Inflation Rate: Assume an average inflation rate of 6%.

Annual Expenses: Calculate annual expenses (current) and project them for the next 50 years considering inflation.

Building the Corpus
Mutual Funds: Continue your equity investments. Equity can provide higher returns over the long term.

PPF: Safe and secure. Continue contributions for stability and tax benefits.

Diversification
Debt Funds: Balance your portfolio with some debt funds. These provide stability and lower risk.

Gold and Bonds: Consider adding gold and bonds to diversify your investments further.

Regular Contributions
Increase Investments: Maximize your monthly savings. Invest any surplus income.

Review Portfolio: Regularly review and adjust your portfolio. Ensure it aligns with your retirement goal.

Professional Guidance
Certified Financial Planner: Consult a Certified Financial Planner. They can help create a detailed retirement plan.

Risk Management: Balance risk and return based on your risk appetite and goals.

Final Insights
Long-Term Planning: Retirement at 40 requires substantial planning and discipline. Ensure your investments are aligned with this goal.

Emergency Fund: Maintain an emergency fund. This should cover at least 6-12 months of expenses.

Health Insurance: Ensure you have adequate health insurance. Healthcare costs can be a significant burden post-retirement.

Lifestyle Adjustments: Be prepared for lifestyle adjustments. Ensure your retirement plan accounts for all potential expenses.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 20, 2024Hindi

Can you tell me how can I earn more money? I am a retired teacher but not getting old pension, so I ask

Ans: Thank you for sharing your situation. You are a retired teacher seeking ways to earn more money since you are not receiving an old pension.

Let's explore various options to help you increase your income and improve your financial situation.

Part-Time Work and Freelancing
Tutoring: Utilize your teaching experience. Offer private tutoring or online classes. This can be a steady source of income.

Freelancing: Leverage your skills. Write, edit, or provide consulting services. Websites like Upwork and Fiverr can help you find opportunities.

Leveraging Your Experience
Educational Consulting: Offer consulting services to schools or educational institutions. Your experience can be valuable in curriculum development or teacher training.

Workshops and Seminars: Conduct workshops or seminars. Focus on topics where you have expertise. Charge a fee for participation.

Investing Wisely
Mutual Funds: Invest in diversified mutual funds. They offer potential for higher returns compared to traditional savings accounts.

Fixed Deposits: Consider investing in fixed deposits for stable and guaranteed returns. Choose banks or post office schemes for safety.

Public Provident Fund (PPF): PPF offers tax benefits and decent returns. It’s a safe investment for long-term growth.

Rental Income
Property Rental: If you own property, consider renting it out. This provides a steady monthly income. Ensure the rental agreement is legally sound.

Paying Guests (PG): If you have extra space, offer it for paying guests. This can be a consistent income source.

Monetize Hobbies and Skills
Crafts and Arts: Sell handmade crafts or art. Platforms like Etsy can help you reach a wider audience.

Blogging or Vlogging: Share your knowledge and experiences. Blogging or vlogging can generate income through ads and sponsorships.

Consulting and Coaching
Life Coaching: With your experience, offer life coaching services. Help individuals with personal development and career guidance.

Academic Counseling: Guide students in choosing career paths and educational courses. Your experience can provide valuable insights.

Health and Wellness Programs
Yoga or Fitness Instructor: If you have knowledge in fitness, become a yoga or fitness instructor. Offer classes to individuals or groups.

Nutrition Advice: Provide nutrition and wellness advice. Help individuals maintain a healthy lifestyle.

Final Insights
Your rich experience as a teacher can be monetized in many ways. Explore opportunities in tutoring, consulting, and freelancing. Invest wisely to ensure steady returns. Additionally, consider rental income and monetizing your hobbies. These steps will help you achieve financial stability and increase your income.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by KALYAN - Jul 23, 2024Hindi

CAN YOU PLEASE TELL BUDGET IMPACT ON LTCG REGARDING PROPERTY AND MUTUAL FUNDS

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 18, 2024Hindi

Hi,sir I am 42 years old, i have savings on pf 6 lakhs from past 15 years till now,invested o. Farm land around 50 lakhs for child ,loan amount is 12 lakhs,and other investment like ulip plan for 10 years so plz suggest is ulip ix better or mf or dorect etf on equity and for the age of 60 per month 1.5 lakhs required suggestion plz suggest ..

Ans: You are 42 years old and have made some significant investments.

Let's assess your financial situation:

Provident Fund Savings: Rs 6 lakhs
Farm Land Investment: Rs 50 lakhs
Outstanding Loan: Rs 12 lakhs
ULIP Plan: Active for 10 years
Your goal is to have a monthly income of Rs 1.5 lakhs at age 60.

Evaluating Current Investments
Provident Fund (PF)
Pros: Safe, guaranteed returns, tax benefits.
Cons: Returns may not outpace inflation.
Farm Land
Pros: Potential for significant appreciation.
Cons: Illiquid, uncertain returns, maintenance costs.
ULIP Plan
Pros: Insurance coverage and investment combined.
Cons: High fees, lower returns compared to mutual funds.
Disadvantages of Direct Funds and ETFs
Direct Funds: Require more active management and expertise. May lead to emotional and rash decisions.
ETFs: Mimic the market, leading to average returns. Lack professional management.
Benefits of Regular Mutual Funds
Professional Management: Expert fund managers handle your investments.
Diversification: Spread risk across various sectors.
Potential for Higher Returns: Actively managed funds aim to outperform the market.
Suggested Investment Strategy
Debt Management
Step 1: Focus on repaying your outstanding loan of Rs 12 lakhs.
Step 2: This will free up funds for investment and reduce interest costs.
Building a Diversified Portfolio
Step 1: Shift focus from ULIPs to mutual funds. Surrender ULIP if it is not performing well.
Step 2: Invest in a mix of large-cap, mid-cap, and flexi-cap mutual funds.
Increasing SIP Contributions
Step 1: Start or increase SIPs in mutual funds. Aim for a substantial monthly contribution.
Step 2: Regular SIPs help in rupee cost averaging and build a disciplined savings habit.
Retirement Planning
Step 1: Calculate the required corpus for a monthly income of Rs 1.5 lakhs at age 60.
Step 2: Regularly invest in mutual funds and PPF to build this corpus.
Insurance Planning
Step 1: Ensure adequate life insurance coverage. Term insurance is cost-effective.
Step 2: Secure health insurance to cover medical expenses in retirement.
Regular Review and Adjustment
Step 1: Regularly review your investment portfolio. Ensure it aligns with your goals.
Step 2: Adjust your investments based on market conditions. Consult with a Certified Financial Planner for guidance.
Final Insights
Your goal of having a monthly income of Rs 1.5 lakhs at age 60 is achievable. With disciplined savings and smart investments, you can secure a bright financial future for your family. Focus on repaying your loan, shifting to mutual funds, and regularly reviewing your investments.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 18, 2024Hindi

Hi sir, I am 35years old.i have 5year old son.my salary and my wife it's 120000, Total medical insurance is 20lack. Pf 9000 per month mutual fund 11000 per month and I have a flat of 65lack.i want to retire at 50.

Ans: Current Financial Situation
Income: Combined salary of Rs 1,20,000 per month.

Medical Insurance: Coverage of Rs 20 lakhs for your family.

Provident Fund: Rs 9,000 per month.

Mutual Fund Investment: Rs 11,000 per month.

Property: Own a flat valued at Rs 65 lakhs.

Son's Age: 5 years old.

Retirement Planning
Goal: Retire at age 50. This gives you 15 years to build a retirement corpus.

Corpus Needed: You need a substantial corpus to sustain post-retirement. This includes living expenses, medical needs, and inflation.

Investments Assessment
Provident Fund: Stable and secure. Continue contributing.

Mutual Funds: Good choice for long-term wealth creation. Ensure you have a diversified portfolio.

Property: Avoid considering it as a liquid asset for retirement. Focus on financial instruments instead.

Increasing Investments
Enhance SIPs: Increase SIP contributions gradually. Aim for a higher monthly investment.

Equity Exposure: Ensure a good mix of equity mutual funds. Equity offers higher returns over the long term.

Debt Funds: Balance your portfolio with some debt funds for stability.

Insurance Review
Medical Insurance: Rs 20 lakhs is decent coverage. Review it periodically to ensure it meets future needs.

Life Insurance: Ensure adequate life cover. Consider term plans for sufficient coverage.

Education Fund for Son
Higher Education: Start a dedicated fund for your son's higher education. Education costs will rise significantly.

Investment Options: Use a mix of child plans and mutual funds to build this corpus.

Reducing Debt
Home Loan: If you have a home loan on your flat, plan to repay it before retirement.

Debt-Free Retirement: Aim to enter retirement without any liabilities.

Professional Guidance
Certified Financial Planner: Consult a Certified Financial Planner for a detailed plan. They can help you balance risk and return.

Regular Reviews: Periodically review your financial plan. Make adjustments based on life changes and market conditions.

Final Insights
Consistent Savings: Regular and disciplined savings are key to achieving your goals.

Balanced Portfolio: Maintain a balanced portfolio to manage risks.

Focus on Long-Term: Keep a long-term perspective for investments. Avoid short-term market fluctuations.

Emergency Fund: Ensure you have an emergency fund. It should cover at least 6 months of expenses.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Imdad - Jul 25, 2024Hindi

Hi sir, My name is imdad Khan, I am married and father of a 1yr old boy and I am 27 years old and having monthly income 70k and 2 loans are running ie., of 35k, House rent will be 10k. Expenses are 10k per month. One of my colleague has suggested me to do SIP so i have started of SIP 2500. Could you please suggest me where and how many i have to invest so that with in 5 years. At least i have to save 20 lakhs. Thank you

Ans: Imdad,

Thank you for sharing your details. You have a stable income of Rs 70,000 per month. You are also a responsible father and husband.

Let's assess your financial situation:

Income: Rs 70,000 per month
Loans: Rs 35,000 per month
House Rent: Rs 10,000 per month
Expenses: Rs 10,000 per month
SIP Investment: Rs 2,500 per month
This leaves you with Rs 12,500 for savings and investments.

Goals and Investment Strategy
Your goal is to save Rs 20 lakhs in 5 years. To achieve this, a structured investment plan is essential.

Increase SIP Contributions
Step 1: Increase your SIP from Rs 2,500 to Rs 10,000. This will significantly boost your savings.
Step 2: Invest in diversified equity mutual funds. They provide potential for higher returns.
Debt Management
Step 1: Focus on repaying your loans. This will reduce your monthly liabilities.
Step 2: Aim to pay off your higher-interest loan first. This will save you money in the long run.
Emergency Fund
Step 1: Allocate a portion of your savings to build an emergency fund. Aim for at least 3 months of expenses.
Step 2: Keep this fund in a liquid asset. A liquid mutual fund is a good option.
Insurance Planning
Step 1: Ensure you have adequate life insurance. Term insurance is cost-effective.
Step 2: Health insurance is crucial. Secure a family floater plan for your family's protection.
Diversified Investment Plan
Step 1: Apart from SIPs, consider other investment avenues like PPF and NPS. These provide tax benefits and steady returns.
Step 2: Avoid direct funds. Regular funds through a Certified Financial Planner offer professional management.
Avoid Index Funds
Step 1: Index funds mimic the market. They offer average returns, which might not be sufficient for your goal.
Step 2: Actively managed funds have the potential to outperform the market. Professional fund managers can navigate market fluctuations better.
Regular Review and Adjustment
Step 1: Regularly review your investment portfolio. Ensure it aligns with your goals.
Step 2: Adjust your investments based on market conditions. Consult with a Certified Financial Planner for guidance.
Final Insights
Your goal of saving Rs 20 lakhs in 5 years is achievable. With disciplined savings and smart investments, you can secure a bright financial future for your family. Focus on increasing your SIP contributions, managing debt efficiently, and diversifying your investments.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Krishna - Jul 17, 2024Hindi

Sir, My mother is aged 72 years. I have taken "Care Supreme Health Policy" for her last year. I recently received a call regarding health policy portability from Star Health Insurance about a policy "Star Health Assure Policy." One of my friend informed me to avoid Star Health for the reason that Star Health Insurance has poor claim settlement ratio recently. Can you please advise if I should opt for Star Health Assure Policy or continue with Care Supreme Policy. Best Regards Krishna

Ans: Porting a health policy means transferring your existing health insurance to a new insurer without losing benefits. It can offer advantages if the new policy is superior. However, porting should be carefully evaluated.

Evaluate the Existing Policy
Coverage and Benefits: Review your current Care Supreme Health Policy. Assess the coverage, sum insured, and benefits.

Claim Settlement: Check the claim settlement ratio of your current insurer. A higher ratio suggests better reliability.

Assessing Star Health Assure Policy
Benefits Comparison: Compare the benefits of the Star Health Assure Policy with your current policy. Look for coverage, sum insured, waiting periods, and exclusions.

Claim Settlement Ratio: Investigate recent claim settlement ratios for Star Health. Your friend mentioned a poor ratio. Confirm this with reliable sources.

Additional Features: Check if Star Health offers any additional features or benefits not present in your current policy.

Importance of Claim Settlement Ratio
Reliability: A poor claim settlement ratio can indicate potential issues in claim processing.

Customer Feedback: Look for reviews and feedback from existing customers of Star Health. This can provide insights into their service quality.

Considerations for Porting
Waiting Periods: Porting may involve new waiting periods for pre-existing conditions. Ensure you understand these before making a decision.

Premiums: Compare the premiums of both policies. Ensure that the new policy offers value for money.

Policy Terms: Read the terms and conditions of the new policy thoroughly. Ensure there are no hidden clauses.

Seek Professional Advice
Certified Financial Planner: Consult a Certified Financial Planner. They can provide a 360-degree assessment of your needs.

Healthcare Needs: Ensure the policy meets your mother's healthcare needs adequately.

Final Insights
Health insurance is crucial, especially for senior citizens. Porting should enhance benefits and reliability. Carefully evaluate both policies, considering coverage, claim settlement ratios, and overall value.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Question by Xavier - Jul 25, 2024Hindi

Hi sir, I have invested in MF as below, considering current budget & market falls, is it's high risk Sbi small cap Hdfc midcap Mirae large cap Nippon small cap Icici india opp Uti mid cap

Ans: Assessment of Current Investments
Your mutual fund portfolio is diversified across different market capitalizations. This diversification reduces risk. The inclusion of small-cap, mid-cap, and large-cap funds is commendable.

Risk Evaluation
Small-cap and mid-cap funds have higher volatility. This can lead to significant gains but also substantial losses. Given the market falls, these funds may experience short-term declines. However, they hold potential for long-term growth.

Market Conditions
Market falls are temporary. They present opportunities to invest at lower prices. Staying invested during downturns can lead to substantial future gains.

Importance of Diversification
Your portfolio covers various market segments. This reduces the impact of poor performance in any single segment. Diversification is a key strategy for managing risk.

Actively Managed Funds vs Index Funds
Actively managed funds aim to outperform the market. They have fund managers who make strategic decisions. This can potentially lead to higher returns compared to index funds, which only replicate the market.

Index funds, while lower in cost, often provide average returns. They may not capitalize on market opportunities. Actively managed funds have the potential for better performance through strategic investment choices.

Regular Funds vs Direct Funds
Regular funds involve investing through a Certified Financial Planner. This provides professional guidance. It helps in selecting the right funds based on market conditions and personal financial goals.

Direct funds, while lower in cost, lack this professional guidance. This can lead to suboptimal investment decisions. Investing through a CFP ensures that your portfolio is well-managed and aligned with your goals.

Rebalancing and Review
Regularly reviewing and rebalancing your portfolio is crucial. It ensures that your investments remain aligned with your risk tolerance and financial goals. A Certified Financial Planner can assist with this process, providing expert advice.

Financial Goals and Time Horizon
Your investment strategy should align with your financial goals. Consider the time horizon for each goal. Long-term goals can accommodate more risk, benefiting from the higher returns of small-cap and mid-cap funds.

Final Insights
Your portfolio is diversified, which is good for risk management.
Small-cap and mid-cap funds are volatile but can offer high returns.
Market falls present buying opportunities.
Actively managed funds can potentially outperform index funds.
Investing through a Certified Financial Planner provides professional guidance.
Regular portfolio review and rebalancing are essential.
Align investments with financial goals and time horizon.
Staying the course during market volatility and leveraging professional guidance can enhance your investment outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 16, 2024Hindi

Hello.. I Am a female 35years and I earn 57k working from home on contract job(no guarantee in contract extension). Started SIP of 30K in the month of April 24, invested 10lakh lumpsum in mutual funds. I have a 8 years daughter. How can i be financially independent.

Ans: Current Financial Status
Age and Income

You are 35 years old.

You earn Rs. 57k per month from a contract job.

Investments

SIP: Rs. 30k per month starting April 2024.

Lumpsum: Rs. 10 lakh in mutual funds.

Dependents

One daughter, 8 years old.
Appreciating Your Proactive Steps
You have taken significant steps toward financial security.

Your commitment to SIPs and mutual funds is commendable.

Financial Independence Planning
Emergency Fund

Priority: Build an emergency fund first.

Amount: Save 6-12 months of expenses in a liquid fund.

Review and Diversify Investments
Mutual Funds

Actively Managed Funds: Focus on these for better returns.

Diversification: Ensure a mix of equity and debt funds.

Avoid Direct Funds

Lack of Guidance: Direct funds can be risky without professional advice.

Professional Support: Regular funds with CFP guidance are better.

Child's Future Planning
Education Fund

SIPs: Allocate a portion of SIPs towards an education fund.

Long-term Goals: Aim for a dedicated education corpus.

Insurance Needs
Health Insurance

Coverage: Ensure adequate health insurance for you and your daughter.

Review: Check if current policies cover all potential health risks.

Life Insurance

Term Plan: Get a term insurance plan for financial protection.

Sum Assured: Opt for coverage that is at least 10-15 times your annual income.

Retirement Planning
NPS (National Pension System)

Contributions: Consider starting or increasing contributions to NPS.

Benefits: NPS offers good returns and tax benefits.

Disadvantages of Index Funds
Lower Returns

Market Mimicry: Index funds only match market performance.

No Active Management: Lack adaptability and expert intervention.

Regular Review and Adjustments
Periodic Review

Regular Checks: Review your financial plan every six months.

Adjustments: Make necessary adjustments based on market conditions and personal changes.

Additional Income Streams
Skill Development

Enhance Skills: Invest in learning new skills relevant to your field.

Freelancing: Consider freelancing or part-time projects for additional income.

Final Insights
Building an emergency fund is crucial.

Diversify your mutual fund investments.

Focus on education and retirement planning.

Ensure adequate health and life insurance.

Regularly review and adjust your financial plan.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Asked on - Jul 26, 2024 | Answered on Jul 26, 2024

Thank you so much for your inputs.

Ans: I appreciate your trust and willingness to connect.
Let's embark on this financial journey together.
You can reach me through my website mentioned below.
This platform has restrictions on sharing personal contact. Hope you understand.

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

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Question by Rama - Jul 16, 2024Hindi

Hello sir , I want to.make corpus of 2Crores my salary is 1lakh and have a all emi of rs 45000 per month, I request you to kindly give me plan for for the best investment for next 10 to 15 years

Ans: Given your salary and current financial commitments, we can create a structured and balanced investment strategy.

Current Financial Snapshot
Monthly Salary: Rs. 1 lakh.

EMI Commitments: Rs. 45,000 per month.

Available for Investment: Rs. 55,000 per month.

Your goal is to build a corpus of Rs. 2 crores in 10 to 15 years. Let's break this down into actionable steps.

Savings and Budgeting
First, ensure a disciplined approach to saving and investing:

Emergency Fund: Set aside 6 months of expenses in a savings account or liquid fund.

Monthly Savings Goal: Allocate Rs. 55,000 for investments consistently.

Investment Strategy
To achieve your target, a diversified and balanced investment portfolio is essential:

Equity Mutual Funds
High Returns Potential: Equity mutual funds can offer high returns over the long term.

Actively Managed Funds: Opt for actively managed funds to potentially outperform the market.

Systematic Investment Plan (SIP): Start SIPs with a significant portion of your monthly savings.

Debt Funds
Stability and Low Risk: Debt funds provide stability and lower risk compared to equity.

Balanced Approach: Allocate a portion of your savings to debt funds for a balanced portfolio.

Systematic Investment Plan (SIP): Consider SIPs in debt funds to maintain consistent investments.

Hybrid Funds
Mix of Equity and Debt: Hybrid funds offer a balance of growth and stability.

Medium Risk: Suitable for moderate risk appetite.

Systematic Investment Plan (SIP): Start SIPs in hybrid funds to diversify your investments.

Tax Planning
Optimize your investments to minimize tax liabilities:

Tax-Saving Instruments: Use instruments like ELSS for tax benefits under Section 80C.

Diversify Investments: Spread investments across different instruments for tax efficiency.

Regular Portfolio Review
Monitoring and adjusting your portfolio is crucial:

Periodic Review: Review your portfolio with a Certified Financial Planner every 6 months.

Rebalancing: Adjust asset allocation based on market performance and financial goals.

Risk Management
Ensure adequate risk management for financial security:

Health Insurance: Maintain comprehensive health insurance coverage.

Life Insurance: If you have dependents, secure life insurance for their financial protection.

Investment Discipline
Maintaining discipline is key to reaching your goal:

Consistent Investments: Stick to your investment plan without interruption.

Avoid Timing the Market: Focus on long-term growth rather than short-term gains.

Stay Informed: Keep yourself updated on market trends and investment options.

Final Insights
To achieve a corpus of Rs. 2 crores in 10 to 15 years, follow a disciplined investment strategy. Save and invest Rs. 55,000 monthly in a mix of equity, debt, and hybrid funds. Optimize your investments for tax efficiency. Regularly review and rebalance your portfolio. Ensure adequate risk management through insurance.

You are on the right track with a clear goal. Stay focused, disciplined, and regularly consult with a Certified Financial Planner to adjust your strategy as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 17, 2024Hindi

Hi Sir, i m 35 yrs man, me &wife earns 1.50 after tax. 25k house expenses, 10k mf pm, 50k loan repayment around 9 lac interest free. I want to buy a flat for next 5-6 yrs. With this financial situation.. How much loan we can afford for any flat down payment will be around 10 lakh.. For 3bhk.?? Plz suggest

Ans: You are 35 years old, and you and your wife have a combined monthly income of Rs. 1.50 lakhs after tax. You have monthly expenses of Rs. 25,000, invest Rs. 10,000 in mutual funds, and have a loan repayment of Rs. 50,000 (interest-free, Rs. 9 lakhs). You want to buy a flat in the next 5-6 years, with a down payment of around Rs. 10 lakhs.

Assessing Your Financial Health
Income and Expenses
Monthly Income: Rs. 1.50 lakhs
Monthly Expenses: Rs. 25,000
Mutual Fund Investment: Rs. 10,000
Loan Repayment: Rs. 50,000
Savings and Down Payment
Current Savings: Assuming your savings include the Rs. 10 lakhs for the down payment.
Down Payment: Rs. 10 lakhs available for the flat.
Determining Affordable Loan Amount
EMI Calculation
Monthly Income: Rs. 1.50 lakhs
Total Obligations: Rs. 25,000 (expenses) + Rs. 50,000 (loan repayment) + Rs. 10,000 (MF investment) = Rs. 85,000
Disposable Income: Rs. 1.50 lakhs - Rs. 85,000 = Rs. 65,000
EMI Affordability
Safe EMI Range: Up to 40% of monthly income.
Affordable EMI: 40% of Rs. 1.50 lakhs = Rs. 60,000
Loan Eligibility
Loan Tenure: Typically, up to 20-30 years.
Interest Rate: Assume 8% for calculation.
Planning Your Purchase
Loan Affordability
EMI Calculation: Rs. 60,000 per month.
Loan Amount: Use an EMI calculator to determine the loan amount.
Down Payment and Total Cost
Down Payment: Rs. 10 lakhs.
Flat Cost: Down payment + loan amount.
Steps to Follow
Save Aggressively: Increase savings to reduce loan burden.
Prepay Existing Loan: Aim to clear the Rs. 9 lakhs loan before taking a new one.
Enhance Investments: Continue mutual fund investments for future growth.
Investment Strategy for Flat Purchase
Increase SIP Amount
Current SIP: Rs. 10,000
Increase SIP: Gradually increase SIP to Rs. 20,000 for better returns.
Diversify Investments: Allocate funds across equity, debt, and hybrid funds.
Emergency Fund
Build Emergency Fund: Ensure at least 6 months of expenses are saved.
Use Liquid Funds: For quick access during emergencies.
Insurance Coverage
Health Insurance: Ensure adequate health insurance coverage.
Life Insurance: Secure term insurance for family protection.
Final Insights
To buy a flat in the next 5-6 years:

Aggressively Save: Increase your savings rate.
Clear Existing Loan: Aim to repay the Rs. 9 lakhs interest-free loan.
Increase Investments: Enhance your SIP to build a corpus.
Affordable EMI: Plan for an EMI within Rs. 60,000.
Emergency Fund: Maintain a robust emergency fund.
By following these steps, you can secure a flat and manage your finances effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 14, 2024Hindi

Hi Sir, I'm 41 yr old and looking to retire by 47. I have 87L in MF (60k/month SIP), 70L in PF, 15 L in PPF, 20L in FD. I have a fully paid house, no loans & no kids. My current monthly expenses are around 60k. How do I plan for my retirement?

Ans: Current Financial Assessment
You have built a substantial financial base:

Mutual Funds (MF): Rs. 87 lakhs, with an ongoing SIP of Rs. 60,000 per month.

Provident Fund (PF): Rs. 70 lakhs.

Public Provident Fund (PPF): Rs. 15 lakhs.

Fixed Deposit (FD): Rs. 20 lakhs.

Fully Paid House: You have no housing loan, providing you with significant financial security.

Your monthly expenses are Rs. 60,000. This forms the basis for calculating your future needs.

Retirement Corpus Requirement
You aim to retire in six years. It's important to estimate the corpus you will need:

Monthly Expenses: Rs. 60,000 now, which may increase due to inflation.

Inflation Adjustment: Assume an average inflation rate to adjust your future expenses.

Post-Retirement Period: Plan for at least 30 years post-retirement to ensure financial security.

Investment Strategy Review
Let's review your investment strategy:

Diversification: You have a diversified portfolio. Continue this practice for balanced risk and return.

Mutual Funds: Actively managed funds can offer better returns. Direct funds may seem cost-effective but come with higher management responsibilities.

Provident Fund: A stable and low-risk option. Keep investing for steady returns.

Public Provident Fund: A tax-saving investment with good long-term returns.

Fixed Deposit: Safe but offers lower returns compared to other investment options.

Action Plan for Retirement
To retire by 47 with a stable income, consider the following steps:

Enhance Mutual Fund Investments
Increase SIP: Gradually increase your SIP contribution as your income allows.

Focus on Actively Managed Funds: These funds can potentially yield higher returns compared to index funds.

Optimize Fixed Deposit Returns
Reevaluate FDs: Move part of your FD investments to higher-yield options like debt funds or balanced funds.

Maintain Emergency Fund: Keep a portion of your FDs as a safety net for emergencies.

Regular Review and Adjustment
Periodic Review: Regularly review your portfolio with a Certified Financial Planner.

Rebalance Portfolio: Adjust your investments based on market conditions and life changes.

Consider Tax Implications
Tax Planning: Optimize your investments for tax efficiency to maximize returns.

Use Tax Benefits: Utilize tax-saving instruments like ELSS and PPF.

Retirement Income Strategy
Create a steady income stream post-retirement:

Systematic Withdrawal Plan (SWP): Use SWP from mutual funds to create a regular income stream.

Diversify Withdrawals: Withdraw from different sources to manage tax efficiently.

Risk Management
Mitigate risks with proper insurance:

Health Insurance: Ensure you have adequate health coverage.

Life Insurance: If necessary, secure life insurance to protect your financial dependents.

Final Insights
Planning for early retirement requires a well-thought-out strategy. You have a strong financial base. Enhance your mutual fund investments. Regularly review your portfolio. Optimize your investments for tax efficiency. Create a steady income stream for post-retirement. Ensure adequate risk management.

You are on the right path. Keep focusing on disciplined investing. Stay informed and consult with a Certified Financial Planner regularly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 16, 2024Hindi

Hi sir... GM Like to plan for corpus of my retirement... Am at 56 now,, like to retire by age 65 No exposure to Mutual finds n Sip as of now No knowledge on mfs at all Like to have atleast 5 cr corpus by 65 I have couple of investments in Real estate Right now my monthly earnings from job is around 1 lakh... Can u suggest n advise as how n what amounts to be invested to have above corpus... Thank u

Ans: You are 56 years old and plan to retire by 65. You aim for a retirement corpus of Rs. 5 crores. Your monthly earnings from your job are Rs. 1 lakh. You have investments in real estate but no exposure to mutual funds or SIPs. Let’s create a strategy to achieve your goal.

Building Your Retirement Corpus
Assessing Your Current Situation
Age: 56 years
Retirement Age: 65 years
Current Monthly Earnings: Rs. 1 lakh
Goal: Rs. 5 crores by 65 years
Creating an Investment Plan
Emergency Fund
Set Aside Funds: Keep an emergency fund for unexpected expenses.
Recommended Amount: At least 6 months of expenses in a savings account or liquid fund.
Purpose: Provides financial stability in case of emergencies.
Systematic Investment Plan (SIP)
Start SIPs: Invest monthly in diversified mutual funds.
Monthly Contribution: Allocate a portion of your monthly income towards SIPs.
Benefit: Helps in disciplined investing and rupee cost averaging.
Diversified Portfolio
Mix of Funds: Invest in a mix of equity and debt funds.
Actively Managed Funds: Choose funds managed by experienced professionals.
Growth Potential: Equities offer higher returns over the long term, while debt funds provide stability.
Lump Sum Investments
Initial Investment: Use part of your savings for a lump sum investment.
Diversification: Split the lump sum across various funds to reduce risk.
Insurance Coverage
Health Insurance
Ensure Adequate Coverage: Have a health insurance policy covering major medical expenses.
Premium Allocation: Budget a portion of your income for health insurance premiums.
Life Insurance
Term Insurance: Secure a term plan to cover your family's financial needs.
Premium Budget: Set aside funds for life insurance premiums.
Regular Review and Adjustment
Quarterly Reviews
Performance Monitoring: Review the performance of your investments quarterly.
Necessary Adjustments: Make changes to stay aligned with your financial goals.
Annual Rebalancing
Portfolio Rebalancing: Adjust the allocation between equity and debt to maintain the desired risk level.
Goal Alignment: Ensure your investments align with your financial objectives.
Avoiding Real Estate Investments
Limited Liquidity
Issue: Real estate investments can be illiquid and hard to convert into cash quickly.
Solution: Focus on more liquid investments like mutual funds and SIPs.
Benefits of Regular Funds through a CFP
Expert Guidance
Tailored Strategies: Get investment strategies customized to your needs.
Continuous Monitoring: Regular assessment and adjustment of your portfolio.
Disadvantages of Index Funds
Lower Flexibility
Lack of Active Management: Index funds are passively managed and may not outperform the market.
Benefit of Active Funds: Actively managed funds have the potential for higher returns due to professional management.
Final Insights
To achieve your retirement goal of Rs. 5 crores by age 65:

Start SIPs: Invest a portion of your monthly income in diversified mutual funds.
Maintain Insurance: Ensure you have adequate health and life insurance.
Review Regularly: Monitor and adjust your investments periodically.
Seek Expert Advice: Consult a Certified Financial Planner for tailored guidance.
By following this strategy, you can build a substantial retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 15, 2024Hindi

Mera age 54 years hai. Mere pass 50 lk hai. Mujhe monthly 30-40k ki zaroorat hai . Kya main SWP plan mein invest kar sakta hoon? Agar SWP karna hai toh high return SWP plan kaunsa hai?

Ans: Current Financial Status and Goals
Age and Requirements

You are 54 years old.

You need Rs. 30-40k per month.

Available Funds

You have Rs. 50 lakhs available.
Appreciating Your Inquiry
It's good you are thinking ahead.

Investing for monthly income is wise.

SWP (Systematic Withdrawal Plan) Evaluation
SWP Benefits

Regular income: SWP provides a fixed monthly payout.

Flexibility: You can adjust the withdrawal amount.

Tax efficiency: Capital gains taxed favorably.

Investment Options
Balanced Funds

Moderate risk: Balanced funds invest in both equity and debt.

Steady returns: They offer relatively stable returns.

Equity Funds

Higher risk: Suitable for long-term growth.

Potential higher returns: Equity funds can provide better returns over time.

Debt Funds

Low risk: These invest in bonds and fixed income.

Stable returns: Debt funds offer predictable income.

Disadvantages of Index Funds
Lower Returns

Market mimicry: Index funds only match market performance.

No active management: They lack the adaptability of actively managed funds.

Disadvantages of Direct Funds
Lack of Guidance

No professional advice: Direct funds do not offer advisory support.

Higher risk: Without guidance, risks are harder to manage.

Benefits of Regular Funds

Professional management: Managed by experts.

Better support: Advisors help with decision-making.

Recommended SWP Approach
Balanced Fund SWP

Balanced option: Combines equity and debt for moderate risk.

Regular income: Suitable for monthly withdrawals.

Debt Fund SWP

Safe option: Focuses on bonds and fixed income.

Stable income: Ideal for conservative investors.

Steps to Implement SWP
Consult a Certified Financial Planner

Professional advice: Get tailored advice for your needs.

Regular review: Ensure your investments align with goals.

Diversify Investments

Spread risk: Invest in a mix of balanced and debt funds.

Adjust as needed: Rebalance portfolio periodically.

Final Insights
You have Rs. 50 lakhs and need Rs. 30-40k monthly.

SWP from balanced and debt funds is suitable.

Consult a Certified Financial Planner for personalized advice.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

(more)

Money

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 14, 2024Hindi

Hello, My in hand salary is roughly 1.25L pm. I am investing in MF and Equities since 2010. Total valuations stands at 71L and PPF + EPF stands at 32L. I have a son who is about to get into college next year. Keeping my aim to retire at the age of 52 please comment on how much I need to have a decent retired life. To have this amount let me know how much increase I have to do in MF

Ans: Current Financial Status
Income and Investments

Monthly in-hand salary: Rs. 1.25 lakhs.

Mutual funds and equities since 2010: Total valuation Rs. 71 lakhs.

PPF and EPF: Total valuation Rs. 32 lakhs.

Family

Son is about to enter college next year.
Appreciating Your Efforts
Your long-term investing is commendable.

You have built a solid foundation.

Retirement Goal
Retirement Age

You aim to retire at age 52.

You have approximately 8 years until retirement.

Retirement Corpus

A comfortable retirement corpus is crucial.

Estimate living expenses and adjust for inflation.

Expense Assessment
Monthly Expenses

Current monthly expenses are crucial.

Account for living, healthcare, and leisure.

Future Needs

Consider increased medical costs.

Plan for lifestyle maintenance and inflation.

Investment Strategy
Mutual Funds

Increase SIPs in diversified mutual funds.

Focus on large-cap and balanced funds.

Equities

Continue equity investments.

Actively manage the portfolio.

PPF and EPF

Continue contributions.

These provide stability and tax benefits.

Education Planning
College Expenses

Plan for your son's college fees.

Set aside funds in low-risk instruments.

Health Insurance
Adequate Cover

Ensure sufficient health cover for you and your family.

Increase cover if necessary.

Disadvantages of Index Funds
Lower Returns

Index funds mimic market returns.

They often yield lower returns compared to actively managed funds.

Lack of Flexibility

Index funds are rigid.

Actively managed funds adapt to market changes.

Disadvantages of Direct Funds
Lack of Guidance

Direct funds lack professional advice.

Regular funds offer support through MFDs with CFP credentials.

Higher Risk

Direct funds can be riskier.

Professional guidance helps mitigate risks.

Emergency Fund
Maintain Liquidity

Keep an emergency fund.

Ensure it's equivalent to 6-12 months of expenses.

Liquid Mutual Funds

Consider liquid mutual funds for this purpose.

They offer better returns than savings accounts.

Action Plan
Increase SIP Contributions

Increase SIPs in large-cap and balanced mutual funds.

Review and Adjust

Regularly review and adjust your portfolio.

Ensure alignment with retirement goals.

Continue Equity Investments

Maintain and actively manage equity investments.

Maintain Emergency Fund

Keep a sufficient emergency fund.

Use liquid mutual funds for better returns.

Final Insights
You have a strong financial foundation.

Increase SIP contributions for a secure retirement.

Continue with equity investments and maintain an emergency fund.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

(more)

Money1

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Question by Sudhakar - Jul 14, 2024Hindi

Before ihave accidentally my leg fracture that no insurence after two years get coved time I have health insurance policy taken now fourth year surgery cover

Ans: Health insurance covers medical expenses. It includes hospital stays, surgeries, and treatments. You need to check the policy details.

Coverage for Pre-existing Conditions
Pre-existing conditions are medical issues you had before getting insurance. These conditions often have a waiting period before coverage starts.

Your Specific Case
You mentioned a leg fracture. Since it's now two years old, check if the policy covers it. Most policies cover pre-existing conditions after a specific waiting period. Since your policy is now in its fourth year, it's likely the surgery will be covered.

Action Steps
Review Your Policy: Check the terms for pre-existing conditions and waiting periods.

Contact Your Insurer: Confirm coverage for your surgery.

Plan for Surgery: Ensure all paperwork and approvals are in order.

Future Considerations
Stay Informed: Keep updated on your policy's terms and conditions.

Regular Health Check-ups: This helps in early detection of health issues.

Emergency Fund: Always have some savings for medical emergencies.

Final Insights
Your health insurance is crucial. Ensure you understand its terms and use it wisely. Stay proactive about your health and insurance details.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money1

Ramalingam Kalirajan |5367 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Question by Sudhakar - Jul 14, 2024Hindi

Hi sir good evening hip replacement surgery cover by health insurance plz help me

Ans: Health insurance policies typically cover various medical procedures, including surgeries. Hip replacement surgery is a significant medical procedure, and understanding its coverage under your health insurance is crucial. Let’s break it down.

Coverage for Hip Replacement Surgery
Inclusion in Policies

Major Surgeries: Most comprehensive health insurance plans cover major surgeries, including hip replacement.

Hospitalisation Costs: Covers hospitalisation expenses, including room rent, doctor fees, and nursing charges.

Pre- and Post-Hospitalisation

Medical Tests: Pre-hospitalisation expenses, like diagnostic tests, are often covered.

Follow-Up: Post-hospitalisation expenses, such as follow-up visits and medications, are typically included.

Checking Your Policy
Policy Document

Terms and Conditions: Review your health insurance policy document for specific coverage details.

Exclusions: Look for any exclusions related to hip replacement surgery.

Customer Support

Insurance Provider: Contact your insurance provider’s customer support for clarification.

Detailed Information: Ask for detailed information about coverage limits and conditions.

Additional Considerations
Waiting Periods

Initial Waiting Period: Check if there is an initial waiting period before you can claim for surgeries.

Specific Waiting Period: Some policies may have a specific waiting period for certain surgeries.

Co-Payment Clause

Shared Costs: Some policies have a co-payment clause, where you pay a part of the expenses.

Percentage: Understand the percentage you need to co-pay.

Disadvantages of Index Funds
Lack of Flexibility

Fixed Portfolio: Index funds have a fixed portfolio, limiting flexibility.

Underperformance: They may underperform compared to actively managed funds.

Benefits of Regular Funds
Professional Management

Expertise: Managed by professional fund managers.

Higher Returns: Potential for higher returns compared to direct funds.

Importance of a Certified Financial Planner
Expert Guidance

Personalised Advice: Provides tailored advice based on your specific needs.

Continuous Support: Offers ongoing support and adjustments to your financial plan.

Final Insights
Review Your Policy: Always review your health insurance policy for specific coverage details.

Seek Professional Help: Consider consulting with a certified financial planner for expert guidance.

Stay Informed: Stay informed about your policy terms and conditions to avoid surprises.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

(more)

Money1

Need Expert Advice?Our Gurus Can Help