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Harsh

Harsh Bharwani  |63 Answers  |Ask -

Entrepreneurship Expert - Answered on Oct 19, 2023

Harsh Bharwani is a fourth generation entrepreneur.
As CEO and managing director, he leads the international business and employability initiatives at the computer networking institute, Jetking Infotrain Limited.
After graduating from Delhi University, Bharwani joined the family business in 2010 and set up operations in the US and Vietnam.
He has trained over three lakh students in employability, confidence and key life skills.... more
milind Question by milind on Jun 29, 2023Hindi
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Career

I am Having the experience of 20 + years in purchase /procurement but not getting good opportunities.

Ans: Update Your Resume: Ensure that your resume reflects your 20+ years of experience accurately. Highlight key achievements and responsibilities in your previous roles. Tailor your resume for each job application to match the specific requirements of the position.

Network: Leverage your professional network to find job opportunities. Connect with former colleagues, attend industry events, and use professional networking platforms like LinkedIn to stay in touch with peers and industry professionals.

Online Job Boards: Explore job search websites and platforms that specialize in procurement and purchasing roles. Websites like LinkedIn, Indeed, Glassdoor, and specific industry job boards can be valuable resources.

Recruitment Agencies: Consider working with recruitment agencies or headhunters who specialize in procurement and supply chain positions. They can help you find relevant job openings and provide valuable insights into the job market.

Skill Development: Stay updated with the latest trends and technologies in procurement. Continuous learning and skill development can make you more attractive to potential employers. Consider taking courses or certifications in areas relevant to your field.

Targeted Applications: Focus your efforts on job openings that closely match your skills and experience. Tailor your application to highlight how your background aligns with the specific requirements of the position.

Professional Associations: Join relevant professional associations in procurement and supply chain management. These organizations often provide access to job listings and networking opportunities.

Interview Preparation: Practice your interview skills to make a strong impression during interviews. Be prepared to discuss your experience, accomplishments, and how you can contribute to the success of the company.

Consider Contract or Freelance Work: Sometimes, interim contract or freelance opportunities can lead to full-time positions. Be open to short-term roles if they align with your career goals.

Stay Positive and Persistent: Job searching can be challenging, and rejection is a part of the process. Stay positive, maintain your confidence, and keep applying to positions that interest you.

It's important to remember that finding the right opportunity can take time, especially if you have specific preferences or requirements. Continue to build your network, stay updated in your field, and be persistent in your job search. Your extensive experience in procurement should be a valuable asset in the long run





Market Research: Conduct thorough market research to assess the demand for travel services in your target region. Consider factors like tourism trends, competition, and economic conditions.

Due Diligence: Carefully review the financial health and reputation of the agency you intend to franchise. Look at their track record, customer reviews, and industry standing to ensure they have a strong foundation.

Franchise Agreement: Examine the terms and conditions of the franchise agreement, including fees, royalties, and the level of support provided by the franchisor. Make sure you understand the contractual obligations and responsibilities.

Location: Assess the location of the agency and its proximity to potential customers. A strategic location can significantly impact your business's success.

Business Plan: Develop a comprehensive business plan that outlines your goals, target market, marketing strategies, and financial projections. This plan will serve as a roadmap for your business.
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Ramalingam

Ramalingam Kalirajan  |7279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 18, 2024

Asked by Anonymous - Dec 17, 2024Hindi
Money
Question on Financial Planning: I am 53 years old and took retirement in 2023, a year ago. I have a corpus of approximately ?20 crores allocated as follows: ?6.5 crores in stocks ?5 crores in mutual funds ?5 crores in debt instruments ?2 crores in gold ?1.8 crores in a savings bank account** (to cover the next 12 years of household expenses). My monthly expenses are approximately ?1 lakh, and I receive: ?70,000 per month as house rent (?8.4 lakhs annually) ?10 lakhs annually as dividends from stocks. I have allocated ?5 crores in debt instruments to fund the higher education of my two sons (expenses will arise after 1 year and after 4 years). My goal is to grow my equity portfolio over the next 12 years since I do not depend on it for my current monthly expenses. Additionally: I have adequate health insurance. I own properties worth ?7.5 crores. I have no liabilities. My query: Is my financial planning on track, or do you see any areas for improvement or correction? I am open to suggestions for optimizing my investments, especially considering my goals of equity growth, funding my sons' education, and maintaining a comfortable retirement.
Ans: Your financial planning reflects strong foresight and effective resource allocation. With a corpus of Rs. 20 crores and no liabilities, your position is financially stable. Let us evaluate your financial setup from a 360-degree perspective and suggest areas for optimisation.

Assessment of Current Allocations
Equity Portfolio: Stocks (Rs. 6.5 Crores)
Your equity allocation reflects a growth-oriented approach.
A diversified stock portfolio is ideal for long-term growth.
Ensure the portfolio is well-balanced across sectors and market capitalisations.
Mutual Funds (Rs. 5 Crores)
Mutual funds provide diversification and professional management.
Review the fund categories to maintain a mix of large-cap, mid-cap, and flexi-cap funds.
Regular performance reviews are essential to optimise returns.
Debt Instruments (Rs. 5 Crores)
Allocating Rs. 5 crores for your sons’ education is prudent.
Ensure the debt investments are in low-risk instruments like bonds or fixed deposits.
Laddering maturity dates aligns well with your sons’ educational timelines.
Gold (Rs. 2 Crores)
Gold provides stability during market volatility.
Keep it as a hedge against inflation but avoid further allocation to this asset.
Savings Account (Rs. 1.8 Crores)
Holding Rs. 1.8 crores for 12 years of expenses is a cautious approach.
Move a part of this amount into liquid funds for better returns with liquidity.
Income and Monthly Expenses
Rental Income (Rs. 8.4 Lakhs Annually)
Rental income covers 70% of your monthly expenses.
Ensure the rental property is well-maintained to sustain consistent returns.
Dividends (Rs. 10 Lakhs Annually)
Dividend income provides an additional safety net.
Reinvest surplus dividends into mutual funds for compounded growth.
Monthly Expenses (Rs. 1 Lakh)
Your monthly expenses are comfortably managed.
Maintain a contingency fund of at least Rs. 20-25 lakhs for unexpected costs.
Recommendations for Optimising Equity Portfolio
Focus on Quality Stocks

Prioritise stocks of companies with strong fundamentals and consistent earnings.
Avoid overexposure to any single sector or company.
Systematic Equity Investments

Add to your equity portfolio gradually through Systematic Transfer Plans (STPs).
This reduces market timing risks.
Regular Portfolio Review

Review the equity portfolio annually.
Exit underperforming stocks and reallocate to high-growth opportunities.
Enhancing Mutual Fund Returns
Diversify Fund Selection

Include funds with different strategies to maximise returns.
A Certified Financial Planner can help identify high-performing funds.
Avoid Direct Mutual Funds

Regular funds offer advisory support for timely rebalancing.
This helps navigate market volatility effectively.
Utilise Tax-Efficient Withdrawals

Plan withdrawals systematically to reduce tax liability on capital gains.
Debt Instruments: Securing Educational Goals
Low-Risk Instruments for Predictable Returns

Allocate funds to secure options like government bonds, fixed deposits, or debt mutual funds.
Match the maturity timelines with educational milestones.
Avoid Premature Withdrawals

Breaking long-term debt investments can reduce returns.
Use other funds for emergencies to protect this allocation.
Optimising Gold Allocation
Retain as a Hedge

Gold should form no more than 10% of your portfolio.
Avoid further investments unless there are specific requirements.
Leverage Gold for Liquidity

Gold-backed loans can provide temporary liquidity if needed.
Savings Account Allocation
Move Funds to Liquid Investments

Savings account returns are suboptimal for such a large balance.
Move funds into liquid funds for higher returns and liquidity.
Emergency Fund Segregation

Retain Rs. 50 lakhs for immediate emergencies.
Invest the rest in short-term debt instruments or liquid funds.
Maintaining a Comfortable Retirement
Healthcare Planning

Ensure health insurance policies are adequate for critical illnesses.
Maintain a separate corpus for medical emergencies.
Contingency Fund Maintenance

Keep Rs. 20-25 lakhs readily accessible for unforeseen expenses.
Review this fund periodically to adjust for inflation.
Estate Planning

Draft a will to avoid disputes and ensure smooth wealth transfer.
Assign nominees for all investments and properties.
Taxation Considerations
Equity Taxation

Long-term capital gains (LTCG) above Rs. 1.25 lakhs are taxed at 12.5%.
Short-term capital gains (STCG) are taxed at 20%.
Debt Taxation

Debt instruments are taxed as per your income tax slab.
Choose tax-efficient options like tax-free bonds if needed.
Dividend Income

Dividends are taxed at your marginal income tax rate.
Reinvest dividends for tax-efficient growth.
Final Insights
Your financial plan is well-structured and aligns with your goals. However, optimising your equity and mutual fund allocations can enhance growth potential. Move idle funds from your savings account into liquid investments for better returns. Review and rebalance your portfolio periodically with the help of a Certified Financial Planner. Your current strategy provides a secure foundation for funding education, retirement, and wealth growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...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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