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Nayagam P

Nayagam P P  |10926 Answers  |Ask -

Career Counsellor - Answered on Dec 14, 2025

Nayagam is a certified career counsellor and the founder of EduJob360.
He started his career as an HR professional and has over 10 years of experience in tutoring and mentoring students from Classes 8 to 12, helping them choose the right stream, course and college/university.
He also counsels students on how to prepare for entrance exams for getting admission into reputed universities /colleges for their graduate/postgraduate courses.
He has guided both fresh graduates and experienced professionals on how to write a resume, how to prepare for job interviews and how to negotiate their salary when joining a new job.
Nayagam has published an eBook, Professional Resume Writing Without Googling.
He has a postgraduate degree in human resources from Bhartiya Vidya Bhavan, Delhi, a postgraduate diploma in labour law from Madras University, a postgraduate diploma in school counselling from Symbiosis, Pune, and a certification in child psychology from Counsel India.
He has also completed his master’s degree in career counselling from ICCC-Mindler and Counsel, India.
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Asked by Anonymous - Dec 12, 2025Hindi
Career

Hello, I am currently in Class 12 and preparing for JEE. I have not yet completed even 50% of the syllabus properly, but I aim to score around '110' marks. Could you suggest an effective strategy to achieve this? I know the target is relatively low, but I have category reservation, so it should be sufficient.

Ans: With category reservation (SC/ST/OBC), a score of 110 marks is absolutely achievable and realistic. Based on 2025 data, SC candidates qualified with approximately 60-65 percentile, and ST candidates with 45-55 percentile. Your target requires scoring just 37-40% marks, which is significantly lower than general category standards. This gives you a genuine advantage. Immediate Action Plan (December 2025 - January 2026): 4-5 Weeks. Week 1-2: High-Weightage Chapter Focus. Stop trying to complete the entire syllabus. Instead, focus exclusively on high-scoring chapters that carry maximum weightage: Physics (Modern Physics, Current Electricity, Work-Power-Energy, Rotation, Magnetism), Chemistry (Chemical Bonding, Thermodynamics, Coordination Compounds, Electrochemistry), and Maths (Integration, Differentiation, Vectors, 3D Geometry, Probability). These chapters alone can yield 80-100+ marks if practiced properly. Ignore topics you haven't studied yet. Week 2-3: Previous Year Questions (PYQs). Solve JEE Main PYQs from the last 10 years (2015-2025) for chapters you're studying. PYQs reveal question patterns and difficulty levels. Focus on understanding why answers are correct, not memorizing solutions. Week 3-4: Mock Tests & Error Analysis. Take 2-3 full-length mock tests weekly under timed conditions. This is crucial because mock tests build exam confidence, reveal time management weaknesses, and error analysis prevents repeated mistakes. Maintain an error notebook documenting every mistake—this becomes your revision guide. Week 4-5: Revision & Formula Consolidation. Create concise formula sheets for each subject. Spend 30 minutes daily reviewing formulas and key concepts. Avoid learning new topics entirely at this stage. Study Schedule (Daily): 7-8 Hours. Morning (5:00-7:30 AM): Physics concepts + 30 PYQs. Break (7:30-8:30 AM): Breakfast & rest. Mid-morning (8:30-11:00): Chemistry concepts + 20 PYQs. Lunch (11:00-1:00 PM): Full break. Afternoon (1:00-3:30 PM): Maths concepts + 30 PYQs. Evening (3:30-5:00 PM): Mock test or error review. Night (7:00-9:00 PM): Formula revision & weak area focus. Strategic Approach for 110 Marks: Attempt only confident questions and avoid negative marking by skipping difficult questions. Do easy questions first—in the exam, attempt all basic-level questions before attempting medium or hard ones. Focus on quality over quantity as 30 well-practiced questions beat 100 random questions. Master NCERT concepts as most JEE questions test NCERT concepts applied smartly. April 2026 Session Advantage. If January doesn't deliver desired results, April gives you a second chance with 3+ months to prepare. Use January as a practice attempt to identify weak areas, then focus intensively on those in February-March. Realistic Timeline: January 2026 target is 95-110 marks (achievable with focused 50% syllabus), while April 2026 target is 120-130 marks (with complete syllabus + experience). Your reservation benefit means you need only approximately 90-105 marks to qualify and secure admission to quality engineering colleges. Stop comparing yourself to general category cutoffs. Most Importantly: Consistency beats perfection. Study 6 focused hours daily rather than 12 distracted hours. Your 110-mark target is realistic—execute this plan with discipline. All the BEST for Your JEE 2026!

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Nayagam P

Nayagam P P  |10926 Answers  |Ask -

Career Counsellor - Answered on Jul 09, 2025

Career
Hello Sir, My daughter is in Class 11 , and preparing for JEE. Kindly advice how to score more than 99.5 %tile in JEE mains (General Category) to get through Top NITs and to qualify for advanced. Kindly suggest the Roadmap. She is into inhouse integrated school coaching.So coaching classes happen in school timing and in school premises(gets over by 3 PM). Kinldy advise books and time management.
Ans: Susmita Madam, Before answering your question, please note this IMPORTANT suggestion: One of the most important yet often overlooked strategies in JEE preparation is the habit of regular analysis and revision after every test, which many students fail to follow consistently—leading to lower scores in both the short and long term. JEE coaching institutes frequently conduct a variety of tests, including topic-wise, unit-wise, and full syllabus assessments. After each test, it's crucial for your daughter to carefully review the questions she answered incorrectly or took too much time to solve, as this will help her identify knowledge gaps and improve time management—an essential skill in competitive exams like JEE. Maintaining a separate notebook for each subject (Physics, Chemistry, and Maths) to record such questions, along with their quicker solutions or shortcuts, can serve as a highly effective revision tool. In addition, since students may understand many concepts but tend to forget them over time, frequent and structured revision is key. Encourage her to prepare short summary notes or formula sheets for each chapter, dedicate at least 20–30 minutes every night to revisiting the day’s lessons, and conduct weekly revisions to reinforce learning. These practices will gradually strengthen her conceptual clarity and problem-solving speed. While she may not see immediate results, the long-term benefits of this disciplined approach will become evident over a few months through improved confidence and performance in mock tests and actual exams. Scoring above the 99.5 percentile in JEE Main—equating to roughly 250–262 marks out of 300—requires disciplined planning over the next 19 months. With school from 7:00 AM–3:30 PM and in-house coaching on campus, utilize 4:30 PM–10:30 PM effectively as follows.

Solid Concept Foundation (Class 11 Core Topics)
Prioritize deep understanding of Class 11 topics that underpin JEE Main and boards:

Physics: Kinematics, Rotational Motion, Thermodynamics, Magnetism, Optics

Chemistry: General & Inorganic Chemistry, Chemical Bonding, Redox Reactions, Gaseous State, Basic Organic Chemistry

Mathematics: Complex Numbers, Quadratic Equations, Sequences & Series, Matrices & Determinants, Integral Calculus

Recommended Books

Physics: H.C. Verma Vol I–II; D.C. Pandey series (Mechanics, Electrodynamics, Modern Physics) (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding)

Chemistry: O.P. Tandon (Physical, Inorganic, Organic); P. Bhardwaj/Bahadur for numerical problems; (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding) & NCERT for basics

Mathematics: R.D. Sharma for fundamentals; Cengage (A.M. Foundation series) for practice; Amit Agarwal for calculus drills (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding)

Previous Years’ Solved Papers: Arihant or MTG or Disha PYQ compilations for all three subjects (Make sure that each question has detailed answers with explanatory notes)

Structured Weekly Schedule -

Monday–Friday (4:30–10:30 PM):
 – 4:30–6:00 PM: School homework & quick board review
 – 6:00–6:15: Break
 – 6:15–8:15: Focused JEE topic (alternate subjects each day)
 – 8:15–8:45: Dinner
 – 8:45–10:00: Practice problems/previous PYQs (Once any Chapter is completed)
 – 10:00–10:30: Revision and short NCERT notes

Saturday–Sunday:
 – Full-length mock test (4 hours)
 – Detailed analysis (2 hours) identifying weak areas
 – Peer discussion or doubt clearing sessions

Time-Management Strategies:

Pomodoro Technique: 45–50 minutes study + 10–15 minutes break to sustain focus.

Prioritize high-weightage topics first; allocate more time to weaker areas.

Maintain daily revision logs and concise formula flashcards for quick recall.

Limit social media; use app-blockers during study blocks.

Ensure 7–8 hours sleep and short physical activity breaks to prevent burnout.

Progress Tracking:

Monthly sectional tests for each subject, simulating exam pattern.

Bi-monthly full syllabus mocks under timed conditions.

Maintain a performance diary: topics mastered, error patterns, revision schedule.

By systematically building concepts, following a balanced timetable, leveraging the right books and mock tests, and refining time-management, she can target and surpass a 99.5 percentile in JEE Main to access top NITs and qualify for JEE Advanced. All The BEST for Your Daughter.

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Nayagam P

Nayagam P P  |10926 Answers  |Ask -

Career Counsellor - Answered on Jan 11, 2026

Career
Hello, I am currently in Class 12 and preparing for JEE. I have not yet completed even 50% of the syllabus properly, but I aim to score around '110' marks in april attempt. Could you suggest an effective strategy to achieve this? I know the target is relatively low, but I have category reservation, so it should be sufficient.
Ans: Yash, Here are 15 Steps/Tips/Techniques/Strategies for your APRIL JEE Session: Step 1: Prioritize High-Weightage Chapters Using 80/20 Rule - Identify topics that appear repeatedly in past papers and contribute maximum marks with minimum effort. In Physics, focus on Modern Physics, Current Electricity, and Optics first. Chemistry demands Chemical Bonding, Coordination Compounds, and Electrochemistry. Mathematics requires Calculus and Coordinate Geometry mastery. These chapters alone cover 60-70% marks, requiring strategic study rather than comprehensive coverage of entire syllabus.

Step 2: Create Focused Subject-Wise High-ROI Chapter Lists -
Develop a short, manageable "core list" by categorizing chapters into four buckets: low-input-high-weightage (prioritize first), high-input-high-weightage (attempt only if basics exist), low-input-low-weightage (quick bonus coverage), high-input-low-weightage (skip entirely). This marks-per-hour game ensures every study session converts into guaranteed marks rather than spreading effort thinly across 100 chapters.

Step 3: Master Formula Notebooks for Quick Daily Revision -
Dedicate 30-45 minutes daily to maintaining organized formula sheets per subject. Physics: compile all formulas in unit-wise order with numerical tricks. Chemistry: organize key reactions, reagents, and NCERT-based exceptions. Mathematics: create method sheets for circles, derivatives, integration with standard approaches. These notebooks become invaluable during final 30 days when revision replaces learning.

Step 4: Implement Daily Balanced Subject Rotation Schedule -
Study physics in morning (formulas + numericals), chemistry in afternoon (reactions + concepts), and mathematics in evening (practice + shortcuts) to prevent mental fatigue and maintain subject continuity. This balanced rotation keeps all three subjects equally developed rather than neglecting weak areas. Night time allocates 1-2 hours reviewing weak topics and analyzing errors.

Step 5: Follow NCERT-First Approach Exclusively for Chemistry -
Since chemistry is NCERT-dominant, read NCERT chapters line-by-line and mark exceptions or variations. Many JEE questions are directly lifted from NCERT examples, tables, and definitions. Organic chemistry requires understanding reaction mechanisms and named reactions. Inorganic chemistry demands memorizing periodic trends and coordination compound basics. This focused NCERT approach guarantees 25-30 marks with minimal time investment.

Step 6: Practice 20-30 Previous Years Questions Daily Per Subject -
Solve minimum 20 topic-wise previous year questions (2019-2025) daily for each subject instead of attempting entire mock tests. This targeted PYQ approach reveals recurring question patterns, examiner preferences, and question difficulty. Timed PYQ practice (15-20 minutes per question for math, 5-10 minutes for physics/chemistry) develops exam-relevant speed without overwhelming effort.

Step 7: Dedicate Weekly Revision Hours for Already-Completed Chapters -
Allocate specific days weekly for revising previously studied chapters using formula notebooks and quick notes. Monday = revise week-1 chapters, Tuesday = week-2 chapters, and so on. This prevents knowledge gaps and reinforces retention through spaced repetition without requiring fresh learning or lengthy study sessions.

Step 8: Conduct Weekly Mock Tests with Detailed 3-Step Analysis -
Take one full-length mock test weekly (increasing to 2-3 per week as exam approaches). Immediately analyze: Step 1 - identify wrong questions and their topics; Step 2 - understand why you answered incorrectly; Step 3 - practice 5-10 similar questions from PYQs. This systematic analysis prevents repeating same mistakes, unlike taking tests without review.


Step 9: Build Subject-Wise Weak-Area Remediation Tracker -
Maintain a simple spreadsheet tracking weak topics (especially in your already-studied 50% syllabus). Monthly (or bi-weekly), allocate 2-3 extra hours practicing only these weak chapters using PYQs and formula-based approaches. Strengthening weak areas early improves accuracy without requiring complete re-learning of strong topics.

Step 10: Develop Exam-Day First-30-Minutes Question Scanning Strategy -
Practice spending first 5 minutes reading entire question paper without solving, marking easy, medium, and difficult questions. This pre-examination scan builds a mental roadmap for attempt sequence. Target easy questions first (securing quick confidence and marks), medium questions next, and difficult questions last only if time permits. This two-round strategy ensures maximum marks via accuracy over volume.

Step 11: Use "One-Shot" Learning for Remaining 50% Syllabus Chapters -
For chapters not yet studied, dedicate 3-5 days per chapter combining concept understanding (2-3 days) + basic numerical practice. Avoid lengthy derivations or complex applications; focus only on formula-based questions likely in JEE. This intensive-but-brief coverage helps you attempt 5-6 extra questions from new chapters rather than leaving them completely untouched.


Step 12: Maintain Daily Error Log with Root-Cause Analysis -
After solving each practice set or mock test, document wrong answers categorized by reason: conceptual misunderstanding, calculation error, misreading question, time management, or silly mistakes. Reviewing this log (15 minutes daily) identifies your specific weakness pattern, enabling targeted remediation rather than generic revision.


Step 13: Allocate Minimum 8 Weeks Before April Exam for Exclusive Revision -
Reserve final 60-70 days (approximately 8-10 weeks before April session) exclusively for revision, PYQ practice, and mock tests without learning new chapters. Early completion (by mid-February) of priority chapters ensures adequate revision time—the single most crucial factor for accuracy improvement from 40-60% conversion to 70-85% conversion rates.

Step 14: Practice Timed Subject-Wise Question Sets for Speed Development -
Solve 10-15 questions from single topics under 20-minute time limits weekly (mathematics), or 5-10 questions in 15-minute limits (physics/chemistry). Progressive timed practice develops exam-relevant speed without causing pressure anxiety. Gradually reduce time allocation by 10-15% monthly to approach actual exam pace naturally.


Step 15: Maintain Positive Mindset and Consistency Over Perfection Mindset -
Study 6-8 hours daily with genuine focus rather than exhausting 12+ hours with low-concentration study. Take short 5-10 minute breaks every 1-2 hours. Avoid comparing your progress with other students, especially those completing entire syllabus. Consistency in daily effort, weekly mock analysis, and monthly weak-area remediation guarantees 110+ marks far more reliably than sporadic intense cramming sessions.

Your 110-mark target with category reservation is absolutely achievable through strategic focus on high-weightage chapters (60-70 marks), quick learnable new topics (20-30 marks), and error-free execution of already-studied 50% syllabus (20-30 marks). The research emphasizes that smart selection and deep mastery of 30-40 chapters beats shallow coverage of all 100 chapters for competitive exam success.

Key Validation: Multiple reliable educational portals confirm that students with incomplete syllabus routinely score 140-170 marks through strategic focus on high-ROI topics, proving your 110-mark goal is conservative and highly realistic.

Consistency over intensity remains the universal recommendation—study 6-8 hours daily with absolute focus, practice 20-30 previous year questions daily per subject, analyze every mock test thoroughly, and maintain weak-area tracking sheets for monthly review cycles. Additionally, if your schedule allows, supplement your preparation with EduJob360 YouTube videos featuring practical strategies for JEE Main and Advanced exam performance. All the BEST for a Prosperous Future!

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Latest Questions
Ramalingam

Ramalingam Kalirajan  |11045 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 27, 2026

Asked by Anonymous - Feb 27, 2026Hindi
Money
I am a corporate IT employee working as a senior development lead in an MNC with 17 years of experience. I am 40 years old with 6 years old son. My current portfolio includes the following. 1. PF balance is 26 lakhs 2. company shares worth 19lakhs. 3. mutual funds worth 1.4 crores. 4. I have life insurance policy worth 20 lakhs as asset 5. NPS corpus 14 lakhs 6. Home worth 1 crores I have a home loan outstanding of rupees 63 lakhs for 12 years and EMI of which is 68000 rupees with 8.5 percent ROI. My gross salary is 3.75 lakhs and in-hand salary is Rs 221000. I get a bonus of 15 percent of my gross salary and a annual raise of 7 percent. My basic salary is Rs. 128000. I do mutual fund SIP of 1 lakh a month. Other savings in each month includes or deducted are Pf 31k, NPS 17k and company share 16k. . I want to retire in 3/5 years. Also keep in mind that : 1. My current Monthly expenses of 50k is excluding loan emi. 2. I will keep SIP 1 lakhs and will not prepay home loan till I retire or suggest should I prepay or grow my Mutual fund instead. 3. The retirement expenses should rise as per inflation and a bit more for lifestyle upgrade. 4.Also I have a term insurance of 50lakhs which I will continue post retirement aswell. 5. I am planning to settle my home loan outstanding with my gratuity, company share and full and final settlement when I leave company. Assuming my monthly current expenses as 50k and can be increased with inflation and lifestyle upgrade and having own home, Suggest if I can retire in 3 or 5 years taking into consideration of my loan outstanding liability and 1 kid of 6 years old's future expenses like study and marriage and my retirement expenses ?
Ans: You have built a very strong financial base at 40. Your savings rate is excellent. Your discipline in SIP, PF, NPS and equity exposure shows maturity. Very few people at your age reach this level of corpus. That is a big positive.

Now let us evaluate this calmly and practically.

» Your Current Financial Position

– Mutual Funds: Rs 1.4 crore
– PF: Rs 26 lakhs
– NPS: Rs 14 lakhs
– Company Shares: Rs 19 lakhs
– Home Value: Rs 1 crore
– Outstanding Loan: Rs 63 lakhs
– Monthly Expense (excluding EMI): Rs 50,000
– EMI: Rs 68,000

Your total financial assets are strong. But retirement decision depends on cash flow sustainability, not just asset size.

» Retirement in 3 Years – Is It Practical?

If you retire at 43:

– Your son will be only 9 years old.
– You will have at least 40+ years of post-retirement life.
– Education costs will rise sharply after 5–10 years.
– Inflation will steadily increase your lifestyle expenses.

Today expense is Rs 50k. In 10–12 years it can easily double or more. Also lifestyle upgrade is expected, as you rightly mentioned.

Even if you clear the home loan using gratuity, shares and settlement:

– Your investible corpus will reduce.
– You will depend fully on investments for income.
– No salary cushion.
– Child education peak years not yet started.

Retiring in 3 years looks aggressive and financially tight.

» Retirement in 5 Years – More Realistic?

If you work till 45:

– Your MF corpus may grow significantly with continued Rs 1 lakh SIP.
– PF and NPS will also grow.
– Bonus and annual increment will add strength.
– You will reduce risk of sequence of return shock.

By 45, if your corpus grows meaningfully and loan is closed, early retirement becomes more realistic.

Even then, you must evaluate whether corpus can generate inflation-adjusted income for 40+ years without erosion.

» Home Loan – Prepay or Continue?

Current loan rate: 8.5%

You are investing heavily in equity mutual funds.

Long-term equity returns historically beat 8.5%. So from a pure mathematical view, continuing SIP instead of prepaying makes sense.

But retirement planning is not only maths. It is about risk comfort.

If your plan is to close loan using:

– Gratuity
– Company shares
– Final settlement

That is a reasonable strategy. It preserves compounding now and gives mental freedom at retirement.

I would not suggest aggressive prepayment now if retirement corpus growth is priority.

» Child Education & Marriage Planning

Your son is 6.

– Higher education likely in 12 years.
– Marriage maybe 20+ years later.

Education cost inflation is higher than normal inflation.

You must mentally earmark a separate corpus within your mutual funds for:

– Graduation
– Post graduation (if abroad, very high cost)

This amount should not be mixed with retirement corpus.

If this segregation is not done, early retirement becomes risky.

» Risk in Company Shares

You have Rs 19 lakhs in company shares.

– This is concentration risk.
– Your salary and wealth both depend on same company.

Before retirement, gradually reduce this exposure and diversify into professionally managed mutual funds.

» Term Insurance

You mentioned:

– Rs 50 lakh term cover
– Rs 20 lakh life policy (investment type)

At 40 with dependent child and non-working spouse, Rs 50 lakh term cover is on the lower side.

If you retire early, income stops. But responsibility remains.

You may need to review total risk cover adequacy before retirement decision.

» Retirement Income Sustainability

Today expense Rs 50k.

After loan closure and lifestyle upgrade, assume:

– Rs 70k–80k in near future
– With inflation, it may cross Rs 1.5–2 lakh per month in 20–25 years.

Retirement corpus must survive:

– Market volatility
– Inflation
– Child education withdrawal
– Medical inflation
– 40+ years longevity risk

Early retirement at 43 needs a very large cushion. At present, it appears borderline unless markets perform very strongly.

» What I Would Suggest

– Target retirement at 45 instead of 43.
– Continue Rs 1 lakh SIP strictly.
– Do not prepay loan now.
– Close loan fully at exit using settlement and shares.
– Reduce company stock concentration slowly.
– Separate child education corpus mentally and structurally.
– Review term cover adequacy.
– Keep 2 years expenses in safe instruments before retirement to manage market volatility.

» Important Behavioural Question

Ask yourself:

Do you want complete retirement?
Or financial independence with option to consult, freelance, part-time?

At 45, shifting to lower stress income option may be wiser than full retirement.

That reduces pressure on corpus.

» Final Insights

– You are financially disciplined and ahead of many peers.
– Retirement in 3 years looks risky.
– Retirement in 5 years can be possible if markets support and corpus grows strongly.
– Child education and longevity are the biggest risk factors.
– Loan closure at retirement is a good psychological move.
– Focus on building bigger margin of safety.

Early retirement is possible for you. But it should be done with strength, not stress.

Best Regards,

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

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

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Dr Dipankar

Dr Dipankar Dutta  |1856 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Feb 26, 2026

Ramalingam

Ramalingam Kalirajan  |11045 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 26, 2026

Money
Hi Ramalingam Sir, Very fond of your guidance. I`ve invested in ICICI Prudential Guranteed Income Plan with PPT of 10 Years & Policy Term is 11 Years. The Yearly Premium is 5 lakhs with Guaranteed Early Income i.e which started from 2nd year onwards is 1.19 Lacs. After 11th year Guaranteed Yearly Income will be 6.38 Lacs. I started this Policy in 2022. Very soon I realized that this is not worth of investing my money. I decided to stop Premium after 2 years which made my Policy as Paid up status which means all benefits are reduced but Policy is Active. I changed myself as I did mistakes in Past (by taking this policy) and now I read each clause very carefully. Now in this case If i surrender, the Surrender value is calculated based on Guaranteed factor X Total premium paid - Income already Paid. Now currently Surrender value is 2.9 Lacs as GV factor is 50%. This factor will improve Gradually with time and by 9th year it will went to 90%. I want to Surrender but now will incur heavy loss (approx. 4.8 lacs) ( to me while in 9th year at least I`ll get 90% of my Premiums back. So pl. advice what is right approach as when should i think for Surrender. As of now by God grace I`m not in any financial emergency. Further is my understanding correct that SV will rise with time. Thanks in advance for your guidance.
Ans: It is very good that you have started reading your policy papers so closely now. Most people do not take the time to understand the fine print, but you have already taken a big step by identifying that this plan does not match your long-term goals. Your ability to stop the premium early shows you are now in control of your money.

» Understanding your paid-up policy and surrender value

Your understanding of how the Surrender Value (SV) works is mostly right. In these types of plans, the Guaranteed Surrender Value factor does go up as the years pass. However, there is a catch. While the percentage factor increases, the insurance company also deducts the income they have already paid out to you from the final amount. Even if you wait until the 9th year to get 90% of your premiums back, you are losing out on the "time value" of that money. Money sitting in a low-yield environment for nine years loses its buying power because of inflation.

» The math behind surrendering now versus later

If you surrender today, you take a big loss of Rs. 4.8 lakhs. This feels painful. But if you keep the money locked in just to avoid the loss, you are essentially letting the company hold your remaining Rs. 2.9 lakhs for several more years at a very low return. A 360-degree view suggests that if you take the money out now and put it into a productive asset like a diversified portfolio of actively managed mutual funds, that money can work much harder for you. Actively managed funds are great because a professional fund manager chooses the best stocks to beat the market, unlike other options that just follow a fixed list.

» Why regular funds and expert guidance matter

Since you mentioned you want to be careful now, it is better to invest through regular plans with the help of a Certified Financial Planner. Many people think direct funds are better because of lower fees, but they often end up making emotional mistakes or picking the wrong funds without a guide. A regular plan gives you access to professional advice and periodic reviews, which ensures you stay on track. This expert support is worth much more than the small cost difference, especially when you are trying to recover from a past investment mistake.

» Opportunity cost and your next steps

Since you do not have a financial emergency, you have a great chance to build wealth. Instead of waiting years just to get your original 5 lakhs back, you can take what is left and start a Systematic Investment Plan (SIP). Over the next seven to eight years, a well-managed equity fund could potentially grow that small amount into something much larger than what the insurance policy would ever pay. The loss you take today is the "fees" for a valuable lesson, but staying in the plan is a continuous cost.

» Tax rules to keep in mind

When you move your money to equity mutual funds, remember the tax rules. If you hold your investment for more than a year, it is called Long Term Capital Gain (LTCG). Any profit above Rs. 1.25 lakh is taxed at 12.5%. If you sell before one year, the profit is taxed at 20%. This is still very efficient compared to many other products.

» Finally

The best approach is usually to exit such low-yield insurance-cum-investment plans as soon as possible. Since your policy is already paid-up, it is not eating new money, but it is wasting your old money. Surrendering now and moving the funds into actively managed mutual funds through a regular plan will likely put you in a much stronger position by the 11th year compared to waiting for the policy to mature.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |11045 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 26, 2026

Money
Dear Sir, Wanted to know if Iam right in my thinking. I want to accumulate 3.5 cr in 15 years. For that , I am planning to start an SIP of 40 k in a small cap mutual fund which have easily beaten small cap index benchmarks last 15 yr/20 yr time frames and generated superior returns( Although I understand past performance may or may not replicate similar performance) However I have noticed that bigger compouding or multibagger return from Mutual funds have come largely only from small and mid caps. Large caps may not come closer to what small caps or a mid cap can generate. So by staying disciplined with sip of 40k everymonth in small cap and continue till 15 years be good plan to accumulate 3.5 cr. 15 years in a small cap fund i believe will be decent hold time for reaching such corpus riding various market cycles etc. risk can be largely minimized. Also if the target is nearing in the 14th yr, the entire corpus can be moved to a short term debt fund as a safer strategy then. Please advise. Thank you
Ans: It is great to see your clear vision for building a corpus of Rs. 3.5 cr over the next 15 years. Your decision to start a monthly SIP of Rs. 40,000 shows strong financial discipline. Planning for a 15-year horizon is a smart move because it gives your money enough time to grow and handle different market ups and downs.

» Assessing the small cap strategy

Choosing small cap funds for long-term growth is an interesting choice. You are right that small and mid-cap companies often have more room to grow compared to large-cap companies. This can lead to higher returns over a long period. However, small cap funds can be very volatile. This means the value of your investment might go up and down a lot more than a large-cap fund. Since you have a 15-year window, you have the time to stay invested through these cycles, which is a good way to manage that risk.

» The value of active management over index benchmarks

You mentioned that the funds you are looking at have beaten the small cap index benchmarks. This is a very important observation. In the Indian market, especially in the small cap space, index funds have many disadvantages. Index funds simply track a basket of stocks regardless of their quality. This means they include both good and bad companies.

Actively managed funds are much better because a professional fund manager carefully picks stocks. They can identify high-quality companies with strong growth potential and avoid those with poor governance or weak financials. This active selection is why many managed funds consistently outperform the index. By choosing active funds, you get the benefit of expert research which is crucial in the complex small cap segment.

» Portfolio structure and diversification

While small caps offer high growth, relying only on one category might be risky. A 360-degree financial solution usually suggests a bit more balance. Even though you want high returns, having some exposure to mid-cap or multicap funds could provide a smoother journey without sacrificing too much growth. This helps in staying disciplined because the portfolio won't swing as wildly during market corrections.

» Risk management and the exit strategy

Your plan to move the corpus to a short-term debt fund in the 14th year is a very wise strategy. As a Certified Financial Planner, I see this as a great way to protect your gains. When you are close to your goal, you do not want a sudden market drop to reduce your 15-year hard work. Shifting to safer debt instruments ensures that your Rs. 3.5 cr target is locked in and available when you need it.

» Taxation on your gains

When you eventually move your money or withdraw it, keep the tax rules in mind. For equity mutual funds, Long-Term Capital Gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. If you sell any units before one year, the Short-Term Capital Gains (STCG) are taxed at 20%. For the debt funds you plan to use in the final year, the gains will be taxed according to your income tax slab.

» Final Insights

Your plan is solid and your goal is achievable with the discipline you are showing. By sticking to your Rs. 40,000 SIP and choosing actively managed funds, you are putting yourself in a strong position. Regularly reviewing the progress with a Certified Financial Planner will help ensure you stay on track and make any small changes needed along the way.

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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