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Ans: Hello;

Your lumpsum (3 L), monthly sip(20 K) and PPF (5 K/pm) may grow into a sum of 2 Cr in 20 years from now onwards, which goes towards your first goal.

While the NPS monthly contribution (10 K) towards retirement goal is significantly lower to fulfill target (5-6 Cr).

You may take either of following steps to enhance chances of building desired retirement corpus (5-6 Cr) by 60 years.

Monthly contribution to NPS should be increased to 60 K.

Start another monthly sip for 40 K for 25 years towards retirement goal fulfillment.

Returns assumed from various investments:
Mutual funds: 10%
PPF: 7%
NPS: 8%
These are purposely considered to be on moderate side.

Coming to your portfolio, I am assuming you are okay with an aggressive risk profile for 15-20 year horizon.

You may have following fund types and allocation:

Flexicap type mutual fund: 25%
Large cap type mutual fund: 25%
Multicap type mutual fund: 25%
ELSS or Value Fund: 25%

You already have 3 of the 4 fund types mentioned above. You may continue with them but review their performance annually.

For the multicap fund type you may select any fund from the top quartile in this category.

For the 40 K sip recommended for your retirement planning, you may continue with above fund types with 20% allocation and add one thematic fund from new technology sector for balance 20%.

Reiterating that this recommendation is assuming aggressive risk profile.

If your risk appetite is different then you may consult an MFD for suitable changes.

Best wishes;
X: @mars_invest

Ans: Hello;

It is good to note that you are curious to know about investments at an early age.

Keep expenses worth 6 months as emergency fund.

Have a term insurance cover in which you can extend amount of cover based on life stages.

Use NPS for your retirement planning.

For all other financial goals such as:
1. Funds for Marriage
2. Home purchase down payment corpus build
3. Vacation planning
4. Car purchase
5. Children's education

You may plan SIPs of various durations into type of mutual funds that are in sync with your risk appetite, financial profile and time horizon.

Mutual funds can be used to invest in various asset classes such as domestic equity, international equity, debt, gold, real estate etc.

Some social security scheme subscription is also desirable (PPF/EPF).

Also carry good healthcare insurance if you are not in government employment.

Please feel free to revert for any other doubts.

Best wishes;

Ans: Hello;

Instead of investing in physical silver, you may invest in silver mutual funds/ETFs.

This will not require any safe deposit locker, making charges and GST.

You may sell it whenever you want.

Also it pegged to the price of physical silver in India.

Best wishes;

Ans: Hello;

You may be able to achieve 1 Cr corpus in the following manner;

1. Do a flat monthly SIP of 50 K for 10 years.

2. Begin with a monthly sip of 15 K and step it up every year by 30% minimum.

Other option is to do a flat monthly sip of 20 K for 17 years to achieve 1 Cr.

A modest return of 10% is considered.

Also your funds need a complete rejig for which you may get in touch with a MFD.

Best wishes;
X: @mars_invest

Ans: Hello;

With your current sip of 51 K you may be able to achieve a corpus of 2.13 Cr in 15 years time frame. (Assuming modest return of 10%).

You may use partial withdrawal from NPS/EPF, if any, and LIC policy proceeds to prepay the home loan.

Best wishes;

Ans: Hello;

How much is the approx current market value of your house?

What is the age of your grand children?

Please clarify.

Thanks;

Ans: Hello;

Please sort out the matter between your DP and yourself regarding original share certificates.

I don't think photocopies of share certificates will help.

Which company stock and NCD are you referring to?

Please clarify.

Thanks;

Ans: Hello;

What is your current age?

How much monthly income do you expect from your policies?

Isn't there a policy surrender clause?

Please clarify.

Thanks;

Ans: Hello;

We do not track stocks listed on nasdaq so won't be able to comment on it.(Picocela: PCLA)

Best wishes;

Ans: Hello;

You may consider opening account for your major son in SBI, BOB, PNB or Canara Bank.

Best wishes;

Ans: Hello;

To the best of my knowledge, Govt has stopped soliciting new applications under PMVVY since 31st March 2023.

Best wishes;

Ans: Hello;

Answer to your question would be probably yes but it comes with a whole list of terms and conditions which the lady has to fulfill so as to receive the pension.

You may check Karnataka Govt pension office or website for further details.

Best wishes;

Ans: Hello;

In debt market keep one golden rule in mind:

Return of Capital is more important than Return on Capital.

DHFL was a AAA rated NCD before it suddenly went into bankruptcy. Similar is the case with bonds of private, co-operative banks, nbfcs and credit societies.

The rate on MIS may be lower but you can sleep peacefully because your money is safe(sovereign rating).

Never chase returns but safety of capital in debt instruments.

Best wishes;

Ans: Hello;

There are many funds that allow Rs. 500 as monthly sip.

However your risk appetite, financial profile and time horizon will determine the type of fund to be invested, into which the sip has to initiated.

You may use online apps such as Groww, paytm money, Kuvera etc to make mutual fund investments online.

Best wishes;

Ans: Hello;

Definitely the part of amount should be utilised to fulfill her home loan.

However for tax liabilities and avenues to save them, if possible, should be discussed with a CA/tax advisor.

Best wishes;

Ans: Hello;

You will need a corpus of around 10 Cr to generate post-tax monthly income of 2 L+ thru SWP(3%).

Home loan has to be settled before getting into retirement through own savings and accruals.

A provision of 50 L-1 Cr for daughter's(13 years from now) higher education considering burgeoning education inflation in India, not captured by WPI or CPI index, is desirable.

Best wishes;

Ans: Hello;

You are well on course to achieve your target. Appreciate your commitment towards building a retirement corpus early.

Funds look good but please review their performance annually vis-a-vis category average and benchmark for risks and returns.

As you cross 50, taper down equity allocation gradually to 10% at 58.

As you approach retirement move your gains to safe avenues to avoid getting impacted by market volatility.

Best wishes;

Ans: Hello;

If it is an RBI regulated lending agency then you may lodge your grievance with ombudsman at RBI.

They can intervene to restructure the loan considering your job loss and illness.

Best wishes;

Ans: Hello;

I do not recommend doing an SWP at more then 3% and doing so on a 3 Cr corpus just about gives a post tax monthly income of 65 K with no scope for any buffer.

You should aim for a corpus of atleast 4 Cr. This will help you in two ways:

1. It will provide higher disposable monthly income in your hands

2. It may take 6-7 years to accumulate so the time in retirement will be comparatively lesser.

Also do keep an emergency fund worth 8-10 months regular expense coverage and ensure adequate healthcare insurance for yourself and your family now which may be continued in retirement.

Lastly, the portfolio must be more oriented towards large cap and hybrid funds for 6-7 years.

Best wishes;

Ans: Hello;

You may hold ~10% of your portfolio in the form of gold fund/ETFs for diversification and risk mitigation.

Also do annual review of your funds vis-a-vis category average and benchmark for risks and returns.

Buy an adequate term life insurance cover for yourself.

Rest looks quite good.

Ensure steady passive income source and own house before you get into business.

All the best for your business endeavours.

Best wishes;

Ans: Hello;

I recommend that you start sip in a multi asset allocation type mutual fund.

It will ensure exposure to commodities (gold), debt as well as equity.

There are many good funds in this category. You may select any fund from the top performance quartile in this category.

Happy Investing;

Ans: Hello;

Your choice of funds looks okay for now however do not fail to review their performance vis-a-vis category average and benchmark for risks & returns every year.

Happy Investing;

Ans: Hello;

Request you to please provide context of the previous conversation for better clarity.

Thanks;

Ans: Hello;

Nobody can predict market bottom however if you have a system in place to increase bets in your high conviction stocks at every major fall, it should help.

In an era of innovative disruption be very careful of the stocks you select on your own.

Do a thorough research on your identified stocks or seek help from a sebi registered research analyst else invest in mutual funds systematically in line with your time horizon and risk appetite.

I am not convinced about the future prospects of the stocks you referred for medium term.

Best wishes;

Ans: Hello;

Maybe you should convince your kid to take up a job and do phd simultaneously by explaining your financial situation.

Don't repent over whatever has happened but you need to stay firm and strong.

People should always keep in mind that business is business afterall and it may fail due to whatever reasons so while planning business entry keep some corpus separate which will keep kitchen fire burning irrespective of business failure.

Remember KFC founder Colonel Sanders after failing in his personal and professional life, struck gold with idea of KFC at ripe age of 62 and was a multimillionaire by the time he retired(~73).

Best wishes;

Ans: Hello;

You may sale some of your asset to repay the loan.

Except home loan, no other loan is worth it except maybe education loan or some emergency.

Also make sure at NO time the total loan EMIs don't exceed 35-40% of your net monthly income.

Also make sure to have 6 months of regular monthly expenses as emergency fund.

You may seek help of family and friends to repay the loan and return back to them whenever feasible.

Check if restructuring of the loan is possible to lessen EMI burden but lengthen the repayment period.

If possible your spouse may take up some job till the loan is repaid.

While managing personal finances always keep in mind the age old saying, cut your cloth according to your size.

Best wishes;

Ans: Hello;

Self PF contribution 12% of Basic +DA=720/-

Employer contribution to PF 3.67% of Basic+DA=~220/-

Total PF contribution per month=~940/-

Best wishes;

Ans: Hello;

It is recommended that you close personal loans first and then opt for home loan.

All loan EMIs shouldn't exceed 35-40% of your in-hand monthly income.

Best wishes;

Ans: Hello;

EPS closes at 58 but you may keep contributing to pf as long as you stay in active employment.

You will get interest on all your contributions. No need to worry.

Ensure entire 12% of employer contribution is credited to your pf account.

Best wishes

Ans: Hello;

Please file FIR with cyber cell(helpline no. 1930)/local Police immediately.

Inform RBI and SBI about the fraud and seek help for refund.

Please be vey careful and cautious.

Never share your personal details, OTP etc on public platforms and phone calls/messages.

Best wishes;

Ans: Hello;

During merger of icici with its bank swap ratio was 2:1. So 60 shares of ICICI Bank in 2001.

Later face value of its share was split from ?10 to ?2 so 60x5=300 shares in 2014.

In 2017 icici bank issued bonus shares at 1:10 therefore 30 more shares so total 330 shares of ICICI Bank as on today.

Best wishes;

Ans: Hello;

You may check zero cost term insurance plans offered by some life insurance companies such as HDFC life.

This allows you to preclose your term policy before maturity if your financial responsibilities are taken care of, and get the refund of premiums paid except taxes and some charges.

Almost all life insurance companies offer Term Plan with Return of Premium(TROP). In this the insurer refunds all the premiums, except taxes, if you survive till maturity and policy is in force.

In a plain vanilla term plan you do not get anything back if you survive till maturity.

Life insurance is pure protection for policyholder's dependants in the
unfortunate event of his death.

Do not mix investment and insurance.

LIC, HDFC life, Kotak life insurance, ICICI Pru life insurance, SBI Life all offer good term plans.

You may buy plans by any of these or even other better offerings.

Please do your due diligence or seek help from an insurance advisor.

Best wishes;

Ans: Hello;

Your friend may have been blacklisted by the banks or some way to convert illegal money into legal money.

Don't agree for such things ever.

If some illicit transactions are routed through your account, all probe agencies will nag you.

Best wishes;

Ans: Hello;

What is your time horizon?

Also your risk profile?

Kindly provide these inputs to guide you suitably.

Thanks;

Ans: Hello;

At the time of merger(Mar-2009) the swap ratio was 16:1.

So for every 16 shares of Reliance petroleum you may expect 1 share of RIL.

Therefore 6 RIL shares as on March 2009.(fractional amount will be paid in cash by RIL)

Considering 3, 1:1 bonus share by RIL thereafter leads to around 48 RIL shares as on today.

Best wishes;

Ans: Hello;

Is the property in the form of land or commercial/residential units which may generate rental income?

Please update so as to provide suitable feedback.

Thanks;

Ans: Hello;

Even if you surrender now you can get 60% of your fund value, after deducting charges, and for the balance 40% you have buy an annuity from SBI Life.

This is as per terms and conditions mentioned in the brochure of this plan.

Best wishes;

Ans: Hello;

This seems like a pure con job.

Have you verified their credentials?

Do they have any approval from Sebi?

Report to the Police and SEBI/RBI.

Do not fall for such gimmicks.

Best wishes;

Ans: Hello;

You may do a partial withdrawal(10-15 L) from your GPF corpus and use it to repay part of the loan.

As the outstanding loan will reduce so will the EMIs required to repay it.

Best wishes;

Ans: Hello;

Request you to kindly elaborate on the query.

I am not getting any reference to your previous query, if any.

Thanks;

Ans: Hello;

What are other points pending with EPFO?

Asking so because it may have had impact on interest payment hence request to clarify.

Thanks;

Ans: Hello;

Please review the terms and conditions of your employment.

Discuss with the HR team of your employer, objective being getting a solution.

Else you may lodge a grievance against employer in EPFiGMS portal but this may affect your further prospects of being employed.

Keep this in mind and then take an appropriate decision.

Seek opinion from a legal counsel if needed.

Best wishes;

Ans: Hello;

Legally it should be possible but for an organisation to allow employees this flexibility (either to join NPS or EPF) should be based on compliance requirements of EPFO law and other labour laws in this regard.

In the quest to the offer flexibility to the employees the employer shouldn't get entangled in legal issues.

Best wishes;

Ans: Hello;

NO.

I would have preferred to go with SBI, BOB, HDFC, ICICI and Kotak banks.

Best wishes;

Ans: Hello;

You may keep 5 L as emergency fund and buy an immediate annuity for corpus of 1.65 Cr.

It may provide you a monthly income of ~around 80 K considering 6 % annuity rate.

You may cut down on your expenses and invest atleast 10-15 K per month in equity savings type mutual funds.

This may be helpful to top-up annuity income after 10-15 years to account for inflation.

Also buy a good helthcare cover for yourself.

Best wishes;

Ans: Hello;

What is your current age?
Also average monthly income and expenses will help us to guide you suitably.

Thanks;

Ans: Hello;

What is the sum assured you are looking at?

Is 5 year premium paying term?

Kindly clarify so as to advise you suitably.

Thanks;

Ans: Hello;

What is the goal for which this investment is intended?

Also time horizon?

Based on your reply we can advise you suitably.

Thanks;

Ans: Hello;

You may invest in equity savings type mutual fund with low to moderate risk rating.

It is a hybrid mutual fund with relatively lower allocation to direct equity.

Happy Investing;
X: @mars_invest

Ans: Hello;

It's not fiscally prudent to borrow more then your requirement.

You may approach some other lender.
Even if rate of interest is slightly higher go for loan only for the required amount.

Also select a longer repayment period so the EMI burden will be lesser.

As and when you get surplus income like bonus do the loan principal repayment as early as possible.

You will also have to invest for retirement and other financial goals as well.

Best wishes;