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Mayank

Mayank Chandel  |1568 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Jun 14, 2024

Mayank Chandel has over 18 years of experience coaching and training students for various exams like IIT-JEE, NEET-UG, SAT, CLAT, CA and CS.
Besides coaching students for entrance exams, he also guides Class 10 and 12 students about career options in engineering, medicine and the vocational sciences.
His interest in coaching students led him to launch the firm, CareerStreets.
Chandel holds an engineering degree in electronics from Nagpur University.... more
soumendra Question by soumendra on Jun 14, 2024Hindi
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My son got chances in GNIT,kolkata for CSE course 2024.is it good

Ans: Yes go ahead
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Ramalingam

Ramalingam Kalirajan  |4831 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

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Hi Sir, I am 41 years old working in Dubai. My invesrment portfolio is as follows, 65 lakhs in MF, 5 lakhs in direct shares, 10 lakh in FD for emergencies. My monthly SIP is 1 lakh in a portfolio with goal of retirement in 14 years with corpus of 10 crores, current valuation is 60 lakh. And 50 thousand in a portfolio with goal of kids education in 12 years with corpus of 3 crores, current valuation is 5 lakh. I have a term plan with 1 million AED cover, no mediclaim other than company provided. No loans. Kindly advise if am well placed to achieve my goals or need to do changes to my portfolio and investments. After retirement in 14 years from now, and on reaching corpus of 10 Cr, can i withdraw 40 Lkahs annually for expenses, while my portfolio still growing by 8 to 10 percent? Thanking you in advance
Ans: Current Financial Overview
Age: 41 years old
Location: Dubai
Investment Portfolio:
Rs. 65 lakhs in mutual funds
Rs. 5 lakhs in direct shares
Rs. 10 lakhs in fixed deposits for emergencies
Monthly SIPs:
Rs. 1 lakh for retirement (goal: 10 crores in 14 years)
Rs. 50,000 for kids' education (goal: 3 crores in 12 years)
Insurance: Term plan with 1 million AED cover
Healthcare: No personal mediclaim other than company-provided
Liabilities: No loans
Analysis of Current Portfolio
Your portfolio is well-diversified across mutual funds, direct shares, and fixed deposits. You have a clear goal for retirement and your children's education, and you're investing consistently towards these goals.

Mutual Funds
65 lakhs in mutual funds: This is a solid foundation. Ensure these are diversified across large-cap, mid-cap, small-cap, and multi-cap funds to balance risk and returns.
SIPs: Your current SIPs are substantial and should help you achieve your goals if market conditions remain favorable.
Direct Shares
5 lakhs in direct shares: This adds a higher risk but potentially higher return element to your portfolio. Ensure these investments are in blue-chip companies or well-researched growth stocks.
Fixed Deposits
10 lakhs in FDs for emergencies: This is prudent and ensures liquidity in case of emergencies.
Retirement Goal
Current Situation
Current Valuation: Rs. 60 lakhs
SIP for Retirement: Rs. 1 lakh monthly
Goal: Rs. 10 crores in 14 years
Assessment
Assuming an average annual return of 12%, your current investments and SIPs should help you reach your retirement goal. Regularly review and rebalance your portfolio to stay aligned with your target.

Kids' Education Goal
Current Situation
Current Valuation: Rs. 5 lakhs
SIP for Education: Rs. 50,000 monthly
Goal: Rs. 3 crores in 12 years
Assessment
Assuming an average annual return of 12%, your current investments and SIPs should help you reach your education goal. Monitor the performance and adjust if necessary.

Additional Recommendations
Health Insurance
Personal Mediclaim: Consider taking a personal health insurance policy in addition to your company-provided cover. This ensures coverage if you change jobs or post-retirement.
Portfolio Diversification
Diversify Further: If not already done, include debt funds, international funds, and sector-specific funds to diversify and reduce risk.
Regular Reviews: Conduct annual reviews of your portfolio to ensure it's on track to meet your goals.
Withdrawal Strategy Post-Retirement
Withdraw Rs. 40 lakhs annually: Assuming an average annual portfolio growth of 8-10%, withdrawing Rs. 40 lakhs annually is feasible. However, consider a mix of systematic withdrawal plans (SWPs) and lump sum withdrawals to manage tax and liquidity.
Final Insights
Continue Current SIPs: Your current SIP amounts and portfolio composition are well-aligned with your goals.
Diversify and Review: Ensure your portfolio is diversified and regularly reviewed.
Health Insurance: Obtain a personal mediclaim policy.
Retirement Withdrawals: Plan for systematic withdrawals to sustain your portfolio growth post-retirement.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4831 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Ramalingam

Ramalingam Kalirajan  |4831 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

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I am a salaried person My take home earning is 39.5K I have two daughter out of which elder one has completed teenage and second is teenager now. I am living on rent Please Suggest Some SIP funds name along with amount suggestion so that I can make my own home in next 10 years along with family liabilities. MY savings would be about 10 L - 11 L within six months.
Ans: You earn Rs. 39,500 per month. You have two daughters, one in her teens and the other has completed her teenage years. You live on rent and aim to buy a home in the next 10 years. Your savings will be about Rs. 10-11 lakhs within six months.

Investment Strategy
Monthly SIP Allocation
Given your goal of buying a home in 10 years, consider the following SIP allocations:

Large-Cap Funds: Allocate Rs. 5,000 monthly. These funds provide stability and steady returns.

Multi-Cap Funds: Allocate Rs. 5,000 monthly. These funds balance investments across different market capitalizations.

Hybrid Funds: Allocate Rs. 5,000 monthly. These funds mix equity and debt, balancing risk and return.

Mid-Cap Funds: Allocate Rs. 2,000 monthly. These funds offer higher growth potential with moderate risk.

Small-Cap Funds: Allocate Rs. 2,000 monthly. These funds can yield high returns but are riskier.

Lump Sum Investment
When your savings reach Rs. 10-11 lakhs, invest a portion in mutual funds and keep some as an emergency fund.

Emergency Fund: Keep Rs. 2-3 lakhs in a high-interest savings account or liquid fund.

Equity Mutual Funds: Invest Rs. 5 lakhs in a combination of large-cap, multi-cap, and mid-cap funds.

Debt Funds: Invest Rs. 2-3 lakhs in short-term debt funds for stability and moderate returns.

Diversification and Risk Management
Diversify Investments: Ensure your investments are spread across different asset classes to reduce risk.

Regular Monitoring: Review your investments periodically to ensure they are aligned with your goals.

Professional Advice
Consider consulting a Certified Financial Planner. They can help tailor a plan to your specific needs and risk tolerance.

Final Insights
Start monthly SIPs in a diversified portfolio.

Allocate lump sum savings wisely.

Diversify investments to manage risk.

Regularly monitor your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4831 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jul 09, 2024Hindi
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I am 41 single female ,no kids, no dependents with no ancestral/ property for self. Just started MF 13k a month (in axis small cap 5k, axis flexi cap 5k & axis bluchip 3k) , PPF has 5L , NPS(T1) has 3L balance.PPF 8.5k a month & 6K in NPS are monthly investments apart from SIP. I m living on rent 21k a month . no EPF balance . Monthly fixed expenses are 70k , car loan & card emi 40k .I make about 1.4L a month. Have health insurance for 1cr . How much more should I invest on monthly basis to have a good retirement? Also the dilema of buying a house flat is always, as there are no dependents/ don't see any in future..no marriage plans in future too. So is it okay to stay on rent ? I have no other savings from the one mentioned above. I have utilised 80 C & 80 D investments completely car insurance & health insurance is about 60k a year
Ans: Current Financial Position

You have a well-structured investment plan with mutual funds, PPF, and NPS. Your monthly investments are focused on SIPs and contributions to PPF and NPS.

Investment Goals

Retirement Planning: Building a comfortable retirement corpus.

Debt Management: Paying off your car loan and credit card EMIs.

Housing Decision: Deciding between renting and buying a house.

Assessment of Current Investments

Mutual Funds (Rs 13,000 per month): You are investing in small cap, flexi cap, and bluechip funds. This provides a mix of high growth potential and stability.

PPF (Rs 5 lakhs): Offers safety and tax benefits. Your monthly contribution is Rs 8,500, which is good for long-term growth.

NPS (Rs 3 lakhs): Provides an additional retirement corpus with tax benefits. Your monthly contribution is Rs 6,000.

Recommendations

1. Increase Monthly Investments

To achieve a good retirement corpus, increase your monthly investments. Aim to save and invest at least 30% of your income. This means increasing your monthly investments to around Rs 42,000.

2. Focus on Debt Management

Prioritize paying off your car loan and credit card EMIs. This will free up funds for additional investments and reduce financial stress.

3. Housing Decision

Renting is a viable option if you do not have dependents and no plans to marry. It provides flexibility and avoids the long-term commitment of a home loan. Investing the funds instead of buying a house can potentially yield better returns.

4. Diversify Your Portfolio

While your mutual funds are well-chosen, consider adding a few more diversified funds to spread risk. Avoid direct funds; instead, invest through a Certified Financial Planner for better management and advice.

5. Maximize Tax Benefits

You are utilizing Section 80C and 80D benefits. Continue to do so and explore other tax-saving investments that align with your goals.

Final Insights

Your financial planning is on the right track. Focus on increasing investments and paying off debt. Renting is a practical choice given your circumstances. A diversified and well-managed investment portfolio will ensure a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4831 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jul 08, 2024Hindi
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Money
Hello, I am 39 and I earn 1.5 lacs per month after Tax and Mandatory PF deduction. I have a total Loan EMI of around ?60,000 which will continue for the next 9 yrs. I have 38 lacs in provident Fund, 5 lacs in PPF, 5 lacs in Bank FD and 15 lacs in Equity MF(?40000/- SIP in 5 Different High Risk Portfolio). I am planning to retire at 50. Kindly guide me how to reach ?3 Crore Corpus Savings/Investment in the quickest possible way.?
Ans: Current Financial Overview
You earn Rs. 1.5 lakhs per month. You have a loan EMI of Rs. 60,000 for the next nine years. Your savings include Rs. 38 lakhs in provident fund, Rs. 5 lakhs in PPF, Rs. 5 lakhs in FD, and Rs. 15 lakhs in equity mutual funds. You invest Rs. 40,000 monthly in high-risk SIPs.

Goal Assessment
You aim to retire at 50 with a Rs. 3 crore corpus. Let's strategize to achieve this goal.

Investment Strategy
Increase SIP Contributions
To reach your goal, consider increasing your SIP contributions. Allocate more funds to a mix of mutual funds with varying risk profiles.

Large-Cap Funds: For stability and steady growth.

Multi-Cap Funds: For balanced exposure across market capitalizations.

Hybrid Funds: For a mix of equity and debt, balancing risk and return.

Increase your SIP contribution as your income grows or expenses reduce.

Optimize Current Investments
Provident Fund
Your provident fund is a strong base. Continue contributing to it for tax benefits and steady returns.

PPF and FD
PPF and FD offer safety but lower returns. Consider moving some FD funds to equity mutual funds for higher growth.

Debt Management
Loan Repayment
Prioritize repaying high-interest loans first. Consider refinancing to reduce interest rates. This will free up more funds for investment.

Diversification and Risk Management
Avoid Overconcentration
Ensure your investments are diversified. Avoid overconcentration in high-risk funds. Balance your portfolio with low and medium-risk investments.

Professional Advice
Consider consulting a Certified Financial Planner. They can help tailor a plan to your specific needs and risk tolerance.

Final Insights
Increase SIP contributions in a diversified portfolio.

Balance high-risk funds with stable investments.

Optimize existing investments for better returns.

Focus on debt repayment to free up funds.

Consider professional financial advice for a tailored plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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