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Amit

Amit Bansal  | Answer  |Ask -

Answered on Jun 18, 2010

Ravi Question by Ravi on Jun 18, 2010Hindi
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Career

i am having professional expereince of 17 years & now intrested to persue phd for changing stream,will it benefit

Ans: A PHD will help you gather the knowledge required to start in a new field, but unless your prior experience is related you may have to work your way up.
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Rohit

Rohit Gupta  |52 Answers  |Ask -

Edtech/Online Education Expert - Answered on Jan 13, 2024

Asked by Anonymous - Jan 12, 2024Hindi
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Hello sir, I am preparing for neet and I took my 1st drop this year and I am thinking of changing my stream as in medical it requires minimum 9-12 years to become fully independent and I want to become independent as soon as possible but at the same time I am thinking like will it be a good decision or not bcz deep down medical field attracts me towards it, so right now I am literally confused.
Ans: Hello,
Navigating career decisions can be challenging, especially when balancing personal interests and the desire for independence. It's commendable that you're considering both aspects. Indeed, the medical field is a noble and rewarding path, but it does require a significant time commitment to education and training. If becoming independent sooner is your top priority, you might explore alternative paths that align with your interests and offer quicker entry into the workforce. Consider the various roles within healthcare, such as CMSED, medical technology, health administration, or allied health professions, which may require less time in education than becoming a fully licensed medical practitioner.

On the other hand, if the allure of the medical field is strong and you find fulfilment in the prospect of contributing directly to healthcare, pursuing your passion might lead to a more satisfying and purposeful career in the long run. It's essential to weigh your priorities, consider the time and effort required for each path, and reflect on what truly resonates with your aspirations.

Seeking guidance from mentors, career counsellors, or medical and alternative healthcare professionals can provide valuable insights, which is why College Vidya is here. Still, ultimately, the decision should align with your goals, values, and vision for your future.

..Read more

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Ramalingam

Ramalingam Kalirajan  |4601 Answers  |Ask -

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

Asked by Anonymous - Jun 05, 2024Hindi
Money
I want to transfer 10cr from the US to Indian stock market. What’s the best way to go about it? I was an NRI but now settled in India. I have about 10cr worth of US stocks (mostly index funds). I want to move those funds to Indian stock market.
Ans: Transferring funds from the US to the Indian stock market can be a complex but rewarding process. You aim to move Rs. 10 crores from US stocks, mainly index funds, to the Indian market. Here is a detailed guide to help you make this transition smoothly and effectively.

Understanding the Process

Transferring funds internationally involves various steps, regulations, and procedures. First, understand the regulatory framework and tax implications. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) regulate the transfer of funds and investment in the stock market.

Step-by-Step Guide

The process can be divided into several key steps. Here’s a comprehensive breakdown:

Close US Investments
To start, sell your US stocks. Since you primarily have index funds, it’s wise to assess their performance. Index funds might have low fees, but actively managed funds often outperform them in diverse markets.

Understand Tax Implications
When selling US stocks, you might face capital gains tax in the US. Consult with a tax advisor to understand your obligations. Ensure compliance to avoid any penalties.

Open a Non-Resident External (NRE) Account
Open an NRE account in India. This account allows you to transfer funds without the hassle of constant currency conversion. It also offers benefits like tax-free interest.

Transfer Funds to India
Use this NRE account to transfer your funds. Choose a reliable bank with good exchange rates. Monitor exchange rates closely to get the best value.


Open a Mutual Fund Account Through an MFD or CFP
To invest in the Indian stock market, first open a mutual fund account through a Mutual Fund Distributor (MFD). MFDs can provide you with the necessary support and guidance in choosing the right funds.

Find the Right Portfolio Management Service (PMS) Through a Certified Financial Planner
A Certified Financial Planner can help you identify the right Portfolio Management Service (PMS) that aligns with your investment goals. PMS offers personalized management of your investments, aiming for optimal returns.

Disadvantages of Index Funds

While index funds are popular, they have limitations. They mimic market performance and cannot outperform it. Active fund managers, however, use their expertise to beat market returns.

Benefits of Actively Managed Funds

Actively managed funds offer several advantages. Fund managers research and select stocks with growth potential. They adjust portfolios based on market conditions, aiming for higher returns.

Disadvantages of Direct Funds

Direct funds might seem appealing due to lower fees. However, they require thorough research and constant monitoring. A Certified Financial Planner can guide you better with regular funds, ensuring professional management.

Benefits of Regular Funds Through a Certified Financial Planner

Investing through a Certified Financial Planner ensures you get professional advice. They help in selecting the right funds, managing your portfolio, and achieving financial goals.

Diversifying Your Portfolio

Investing in a mix of large-cap, mid-cap, and small-cap funds helps in diversifying your portfolio. Each category offers different risk and return profiles, balancing your investment strategy.

Large-Cap Funds

Large-cap funds invest in well-established companies. They provide stability and steady returns. These funds are ideal for conservative investors looking for consistent growth.

Mid-Cap Funds

Mid-cap funds invest in medium-sized companies with high growth potential. They offer a balance between risk and return, suitable for investors with a moderate risk appetite.

Small-Cap Funds

Small-cap funds invest in smaller companies with significant growth prospects. They are riskier but can provide substantial returns. These funds are suitable for aggressive investors.

Sector-Specific Funds

Consider sector-specific funds like pharmaceuticals, technology, or finance. They allow you to capitalize on the growth of specific industries. Ensure a well-balanced portfolio to manage risk.

Regular Review and Rebalancing

Regularly review and rebalance your portfolio. Market conditions change, and rebalancing ensures your investments align with your goals. A Certified Financial Planner can assist in this process.

Importance of Financial Planning

Financial planning is crucial for successful investing. It helps in setting clear goals, understanding risk tolerance, and planning for long-term objectives. A Certified Financial Planner can provide a personalized financial plan.

Genuine Compliments and Empathy

Your decision to invest in the Indian stock market is commendable. It shows a proactive approach to managing your wealth. We understand that this process can be daunting. Rest assured, with the right guidance, you will navigate this transition smoothly.

Final Insights

Transferring Rs. 10 crores from the US to the Indian stock market is a significant step. By following these guidelines, you can ensure a seamless transition. Sell your US stocks, understand tax implications, transfer funds, and invest wisely. Prioritize actively managed funds for better returns. Regularly review your portfolio and seek professional guidance from a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4601 Answers  |Ask -

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

Money
I am 45 years my name is U K Singh I have MF of 2000000 and SIP of 6500/ Month PPF Value 1500000 NPS Value 500000 by monthly contribution of 5K FD of 2000000 NSC of 1000000 My wife is also 45 years Her MF Value is of 500000 PPF Value 2100000 NPS Value 500000 by monthly contribution of 5K FD of 500000 3 Plots of 1 Cr My current monthly expenses are 30K. For my son’s medical education from 2029 to 2034 I will need money and for our retirement phase we will need money. Please suggest what we have to do
Ans: Your current investments are well-diversified across various instruments. These include mutual funds (MF), Public Provident Fund (PPF), National Pension System (NPS), Fixed Deposits (FD), and National Savings Certificates (NSC). Additionally, you have significant investments in real estate through plots.

You and your wife both have substantial PPF and NPS investments, which is a good strategy for long-term savings and tax benefits. Your monthly expenses are Rs. 30,000, and you will need funds for your son's medical education from 2029 to 2034 and for your retirement.


Your diversified portfolio shows a good understanding of risk management. The regular contributions to NPS and PPF are commendable as they offer long-term benefits. Your investment discipline is evident from your systematic investment plans (SIPs) and regular savings.

Understanding Your Goals
Let's break down your financial goals into two primary categories:

Funding Your Son's Medical Education (2029-2034)

Retirement Planning

Funding Your Son's Medical Education
Your son's education is a short to medium-term goal. To meet this goal, you need to ensure liquidity and safety of principal.

Recommendations:

Continue Your SIPs: Keep your SIPs in mutual funds going. These will help accumulate a significant corpus over time.

Allocate a Separate Fund for Education: Consider creating a separate investment portfolio for your son's education. You could increase your SIP amount or start a new SIP specifically for this goal.

Invest in Debt Funds: Given the shorter time frame, consider debt mutual funds. They offer better returns than FDs and are more tax-efficient.

Recurring Deposits (RDs): RDs can also be considered for medium-term goals. They are safe and offer guaranteed returns.

Partial Withdrawal from PPF: Since your PPF accounts have substantial balances, you can consider partial withdrawals when required. PPF allows withdrawals after the 7th year.

Retirement Planning
Retirement planning is a long-term goal, and you need to ensure a steady income post-retirement.

Recommendations:

Increase SIP Contributions: If possible, increase your SIP contributions. Equity mutual funds are suitable for long-term goals due to their potential for higher returns.

Balanced Funds: Consider balanced or hybrid funds. These invest in both equity and debt instruments, providing a balance of growth and safety.

Review NPS Contributions: Your NPS contributions are excellent for retirement planning. Ensure that you and your wife continue contributing Rs. 5,000 monthly.

Systematic Withdrawal Plan (SWP): Post-retirement, use SWP from your mutual funds for regular income. SWPs provide a steady income stream and are tax-efficient.

Health Insurance: Ensure you have adequate health insurance. Medical emergencies can significantly impact your savings.

Evaluation of Current Investments
Mutual Funds (MF):

Your MF investments are Rs. 2,000,000 and Rs. 500,000 respectively. Continue these investments and consider increasing your SIPs if possible.
PPF:

Your PPF values are Rs. 1,500,000 and Rs. 2,100,000. PPF is an excellent long-term investment. Avoid withdrawing unless necessary.
NPS:

Both you and your wife have Rs. 500,000 in NPS with monthly contributions of Rs. 5,000. This is a good strategy for retirement savings.
FDs and NSCs:

FDs (Rs. 2,000,000 and Rs. 500,000) and NSCs (Rs. 1,000,000) are safe but offer lower returns. Consider shifting a portion to higher-yielding instruments like debt mutual funds or balanced funds.
Real Estate:

Your three plots valued at Rs. 1 crore are a significant investment. Real estate is illiquid, so avoid relying on it for immediate needs.

We understand the importance of securing your son's future and ensuring a comfortable retirement. Your careful planning and disciplined approach are commendable. Balancing current expenses, future education costs, and retirement savings can be challenging. However, with a structured approach, you can achieve your goals.

Adjusting Your Portfolio
Increase Equity Exposure:

For long-term goals like retirement, increasing equity exposure is advisable. Equity has the potential for higher returns, which can significantly enhance your retirement corpus.
Debt Allocation:

For your son's education, focus more on debt instruments to ensure safety and liquidity. Debt mutual funds, RDs, and PPF withdrawals can be effective.
Emergency Fund:

Maintain an emergency fund equal to 6-12 months of your monthly expenses. This fund should be in liquid instruments like savings accounts or liquid mutual funds.
Regular Review and Rebalancing
It's crucial to regularly review your portfolio and make necessary adjustments. Market conditions, interest rates, and personal circumstances change over time. Regular reviews ensure that your investments remain aligned with your goals.

Rebalancing Strategy:

Review your asset allocation annually. If equity markets perform well, your equity allocation may exceed your target. In such cases, consider shifting some funds to debt instruments.
Avoiding Common Pitfalls
Avoid Over-Reliance on Fixed Deposits:

While FDs are safe, their returns are often lower than inflation. Over-reliance on FDs can erode your purchasing power over time.
Diversify Within Mutual Funds:

Don't concentrate all your mutual fund investments in one category. Diversify across large-cap, mid-cap, and multi-cap funds.
Avoid High-Cost Insurance Products:

Avoid insurance products with high premiums and low returns. Focus on pure term insurance for adequate coverage and invest the rest in mutual funds.
Tax Planning
Effective tax planning can enhance your returns. Utilize all available tax-saving instruments.

PPF and NPS:

Both PPF and NPS provide tax benefits under Section 80C and Section 80CCD respectively. Maximize these contributions for tax savings.
Mutual Funds:

Equity mutual funds held for more than one year qualify for long-term capital gains tax at 10% for gains exceeding Rs. 1 lakh.
Health Insurance:

Premiums paid for health insurance qualify for deductions under Section 80D.
Final Insights
Your disciplined approach to savings and investments is praiseworthy. By fine-tuning your portfolio and aligning it with your goals, you can ensure financial security for your family. Focus on increasing your equity exposure for long-term goals and maintaining liquidity for short-term needs. Regular reviews and rebalancing will keep your investments on track.

Planning for your son's education and your retirement simultaneously is challenging but achievable with a structured plan. Continue your disciplined investment approach, and you will be well-prepared for both.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4601 Answers  |Ask -

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

Money
Sir, I have purchaes LIC jeevan Saral policy in the year 2012. I am paying Rs 4083/- towards premium every month. I want to surrender this policy now, but unable to find details about bonus etc. Plz help.
Ans: Surrendering an insurance policy is a major decision. You have consistently paid Rs 4083/- per month since 2012. This dedication shows your commitment to securing your future. Now, let's delve into the specifics of surrendering your policy and its implications.

Surrender Value and Its Components
The surrender value is the amount you get when you decide to discontinue your policy before its maturity. This amount includes two main components:

Guaranteed Surrender Value: This is a percentage of the premiums you have paid, minus the first year's premium and any bonuses you might have received.

Special Surrender Value: This is usually higher than the guaranteed surrender value. It takes into account factors like the duration of the policy and the total premiums paid.

Since you have been paying premiums for over a decade, you are likely to receive a special surrender value. This value reflects the time and money invested in the policy.

Evaluating Bonuses
Insurance policies often come with bonuses, which are additional amounts added to the sum assured. These bonuses can significantly impact the surrender value. However, understanding the exact bonus details can be challenging without specific policy documentation. Generally, bonuses accumulate annually and are declared by the insurance company based on their profits.

In your case, given the policy's tenure, there should be a notable bonus component. But, for precise information, it's essential to contact the insurance company directly or refer to your policy documents.

Analyzing Financial Goals
Surrendering a policy is not just about the immediate financial gain. It's crucial to align this decision with your long-term financial goals. Reflect on the reasons for surrendering the policy:

Immediate Financial Needs: If you have urgent financial requirements, surrendering the policy might provide quick funds.

Better Investment Opportunities: You might want to explore other investment avenues that offer higher returns.

Changing Financial Priorities: Your financial goals and priorities might have evolved over time.

Exploring Alternative Investments
Upon surrendering your policy, you might consider reinvesting the proceeds. Here are some options to consider:

Mutual Funds
Mutual funds offer a diverse range of investment opportunities. They are managed by professional fund managers who make investment decisions on your behalf. Here’s why mutual funds can be a good option:

Diversification: Mutual funds invest in a variety of assets, reducing risk.

Professional Management: Experienced fund managers handle your investments.

Liquidity: You can easily buy and sell mutual fund units, providing flexibility.

Potential for Higher Returns: Historically, mutual funds have offered higher returns compared to traditional savings instruments.

Systematic Investment Plans (SIPs)
SIPs are a disciplined way to invest in mutual funds. They allow you to invest a fixed amount regularly, ensuring you benefit from market fluctuations. This method can help you build a substantial corpus over time.

Debt Instruments
If you prefer lower risk, consider debt instruments like fixed deposits or government bonds. These options provide stability and predictable returns.

Equity Investments
For those comfortable with higher risk, equity investments can offer significant growth potential. Investing in stocks directly can be rewarding but requires careful analysis and monitoring.

Assessing Risks and Benefits
Every investment comes with its own set of risks and benefits. It’s important to evaluate these before making a decision:

Risk Tolerance: Understand your ability to withstand market fluctuations.

Time Horizon: Consider the duration you can keep your money invested.

Financial Goals: Align your investments with your long-term objectives.

Tax Implications: Different investments have varied tax treatments. Understand the tax benefits and liabilities associated with each option.

Consulting a Certified Financial Planner
To make an informed decision, it’s wise to consult a Certified Financial Planner (CFP). A CFP can provide personalized advice based on your financial situation and goals. They can help you:

Analyze Your Current Financial Position: Assess your income, expenses, and savings.

Set Realistic Goals: Define achievable financial objectives.

Create a Customized Investment Plan: Develop a strategy tailored to your needs.

Monitor and Adjust: Regularly review and adjust your plan to stay on track.


Your dedication to paying premiums for over a decade is commendable. This long-term commitment reflects your focus on financial security. When considering policy surrender, it's important to maintain this long-term perspective. Think about how your decisions today will impact your financial future.


We understand that navigating financial decisions can be challenging. It’s normal to feel uncertain about the best course of action. By gathering information and seeking professional advice, you’re taking the right steps toward making an informed decision.

Final Insights
Surrendering your insurance policy is a significant decision with various implications. It's essential to consider the surrender value, bonuses, and your long-term financial goals. Exploring alternative investments can provide opportunities for better returns and financial growth. Consulting a Certified Financial Planner can offer valuable guidance tailored to your needs. Remember to maintain a long-term perspective and make decisions that align with your financial objectives.

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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