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Abhishek

Abhishek Shah  | Answer  |Ask -

HR Expert - Answered on Jul 17, 2023

Abhishek Shah is an experienced tech and HR leader. He has over 10 years of experience in helping create sustainable thriving businesses, leveraging technology and mentoring people. He founded Testlify, a talent assessment platform in 2022. He is passionate about helping founders build high-performing tech teams. ... more
Vivek Question by Vivek on Jul 15, 2023Hindi
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Career

How to start a business while already in a job.

Ans: Starting a business while already being employed can be an exciting and challenging endeavor. I can provide you with some valuable insights and steps to help you navigate this journey:

Evaluate Your Idea: Before you begin, assess the feasibility and potential of your business idea. Conduct market research to understand your target audience, competition, and the demand for your product or service.

Create a Business Plan: A well-structured business plan is crucial for any venture. Outline your business objectives, strategies, financial projections, and marketing plans. This plan will act as a roadmap for your business and can also be helpful when seeking funding or partnerships.

Time Management: Balancing a job and a new business requires excellent time management skills. Set aside specific hours each day or week dedicated to your business. Be disciplined and committed to utilizing this time effectively.

Avoid Conflicts of Interest: Make sure your new business idea doesn't conflict with your current employer's interests. Review your employment contract and company policies to ensure there are no restrictions on starting a side business.

Secure Funding: Determine how much capital you need to start your business. You might consider bootstrapping, seeking investors, or applying for loans. Adequate funding is essential to get your business off the ground.

Build a Support Network: Surround yourself with mentors, advisors, or a supportive entrepreneurial community. Networking can provide guidance, advice, and potential business opportunities.

Test the Waters: Consider starting your business as a part-time venture initially. This will allow you to validate your idea and get real-world feedback while minimizing the risk.

Legal and Tax Implications: Register your business with the appropriate government authorities and obtain any necessary licenses or permits. Be aware of your tax obligations and keep your personal and business finances separate.

Delegate and Outsource: As your business grows, you may need to delegate certain tasks or outsource work to manage your time efficiently. Focus on core activities that require your expertise and delegate the rest.

Maintain Work-Life Balance: Starting a business alongside a job can be demanding, so it's crucial to maintain a healthy work-life balance. Take care of your physical and mental well-being to avoid burnout.

Be Patient and Persistent: Building a successful business takes time and effort. Be prepared for challenges and setbacks along the way, but remain persistent and focused on your goals.

Remember, every business journey is unique, and success depends on various factors, including market conditions, competition, and your dedication to the endeavor. With proper planning, commitment, and the right mindset, you can successfully start and grow your business while maintaining your job.

Regards,
Abhishek Shah
Career

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Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Money
Hi, I am 42 yrs old and have 21 years of experience in sales and marketing. I have approx. 60 lacs of savings including PF and 10 lacs equity portfolio and 1 cr of real estate assets. I want to quit my job and start business. I had done some home work also in some products. I have 15 lacs of medical policy. 30 lacs of term plan and approx. 7 lacs of traditional plan of insurance. How can I go ahead. Pls advise
Ans: Your 21 years of experience in sales and marketing have led you to build a solid financial foundation. You have Rs. 60 lakhs in savings, Rs. 10 lakhs in equity, and Rs. 1 crore in real estate assets. Additionally, you have a medical policy worth Rs. 15 lakhs, a term plan worth Rs. 30 lakhs, and a traditional insurance plan worth Rs. 7 lakhs. This is a strong base to start from as you contemplate beginning your own business.

Evaluating Your Decision to Start a Business
Starting a business is a significant decision that requires thorough evaluation. Your experience in sales and marketing is a great advantage, and it's crucial to leverage this as you transition into entrepreneurship. Ensure your business plan is comprehensive, covering market research, product demand, competition, and financial projections.

Ensuring Financial Security
Before you quit your job, it’s important to secure your and your family’s financial future. Here are a few steps to ensure financial security:

Building an Emergency Fund
Ensure you have an emergency fund that covers at least 12 months of living expenses. This fund will act as a safety net in case your business takes longer to generate profits.

Reviewing Insurance Coverage
Your medical policy of Rs. 15 lakhs and term plan of Rs. 30 lakhs are essential for protecting your family. Consider increasing your term plan coverage to match your current income and liabilities.

Evaluating Traditional Insurance Plan
The traditional insurance plan of Rs. 7 lakhs may not provide the best returns. Consider surrendering it and reinvesting the proceeds into mutual funds for better growth potential.

Planning Your Business Finances
Starting a business requires careful financial planning. Here are steps to help you get started:

Creating a Business Budget
Prepare a detailed budget for your business. Include initial setup costs, monthly operating expenses, marketing costs, and other miscellaneous expenses. This budget will help you understand your financial needs and plan accordingly.

Securing Initial Capital
You have Rs. 60 lakhs in savings, which is a good starting point. Decide how much of this amount you are willing to invest in your business. Keep a portion of your savings intact as a safety net.

Exploring Funding Options
Consider exploring funding options such as business loans, angel investors, or venture capital if your business requires additional capital. Ensure you understand the terms and conditions of these funding options.

Diversifying Investments
While starting a business, it's essential to continue growing your personal wealth. Diversifying your investments will help you achieve this. Here are some options to consider:

Mutual Funds
Mutual funds are an excellent way to diversify your investments. They offer the potential for higher returns through professional management. Consider investing in a mix of equity and debt funds based on your risk appetite.

Types of Mutual Funds
Equity Funds: Invest primarily in stocks. Suitable for long-term goals due to their growth potential.

Debt Funds: Invest in fixed-income securities. Suitable for short to medium-term goals with lower risk.

Hybrid Funds: Combine equity and debt investments. Provide a balance of risk and return.

Benefits of Mutual Funds
Professional Management: Funds are managed by experienced fund managers.

Diversification: Spread your investments across different securities, reducing risk.

Liquidity: Easy to buy and sell units as per your needs.

Power of Compounding: Long-term investments can grow significantly through compounding returns.

Risks of Mutual Funds
Market Risk: Returns depend on market performance.

Credit Risk: Risk of issuer default in debt funds.

Interest Rate Risk: Changes in interest rates can affect debt fund returns.

Power of Compounding
Investing in mutual funds for the long term allows you to benefit from compounding. Reinvesting your returns helps your investments grow exponentially over time. This is a powerful tool for wealth creation.

Strategic Investment Approach
Here's a strategic approach to investing in mutual funds:

Asset Allocation
Equity Allocation: Given your moderate risk appetite, allocate 60-70% of your investments in equity funds.

Debt Allocation: Allocate 20-30% in debt funds for stability.

Hybrid Funds: Allocate the remaining 10-20% in hybrid funds for a balanced approach.

Regular Investments
Set up systematic investment plans (SIPs) to invest regularly in mutual funds. This approach helps in averaging out the cost of investments and reduces market timing risk.

Review and Rebalance
Regularly review your investment portfolio. Rebalance your portfolio to maintain your desired asset allocation and adjust based on market conditions.

Managing Business and Personal Finances
Balancing your business and personal finances is crucial. Here are some tips to help you manage both effectively:

Separate Business and Personal Finances
Keep your business and personal finances separate. Open a separate bank account for your business transactions. This will help you track your business expenses and income more efficiently.

Budgeting for Personal Expenses
Create a budget for your personal expenses. Ensure that your personal expenses are covered by your emergency fund and any income generated from your investments.

Monitoring Cash Flow
Regularly monitor your business and personal cash flow. This will help you identify any potential financial issues early and take corrective action.

Financial Goals
Set clear financial goals for your business and personal life. This will help you stay focused and motivated. Review your goals periodically and adjust them based on your progress.

Seeking Professional Advice
While you have done commendable homework, seeking professional advice can provide valuable insights. A Certified Financial Planner (CFP) can help you with detailed financial planning and investment strategies tailored to your goals.

Final Insights
Your solid financial foundation and prudent planning are commendable as you embark on your entrepreneurial journey. Balance your business ambitions with personal financial security. Diversify your investments, keep your emergency fund intact, and regularly review your financial goals. Your experience in sales and marketing will be invaluable as you start your business. Wishing you the best of luck!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Samraat

Samraat Jadhav  |2248 Answers  |Ask -

Stock Market Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 02, 2025Hindi
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Money
I have been investing in shares for several years and have seen good returns, but with increasing market volatility, I'm considering diversifying into international stocks or alternative assets. What are the potential benefits and risks of each approach?
Ans: Diversifying into international stocks and alternative assets can be a strategic move, especially given your experience in financial analysis and investment planning. Here’s a breakdown of the benefits and risks of each approach:
International Stocks
Benefits are as follows:
- Diversification – Investing globally reduces dependence on domestic market conditions and spreads risk
- Access to High-Growth Markets – Some international markets, particularly emerging economies, may offer higher growth potential.
- Currency Appreciation – If the foreign currency strengthens against the INR, your returns could increase.
- Exposure to Leading Industries – Developed markets like the U.S. provide access to top tech, healthcare, and finance companies.

Risks involved in international markets are as follows:
- Currency Fluctuations – Exchange rate volatility can impact returns.
- Political & Economic Risks – Foreign regulations, trade policies, and economic instability can affect investments.
- Higher Transaction Costs – International investing often involves additional fees and taxes.
- Limited Information Access – Researching foreign companies may be more challenging compared to domestic firms.

Alternative Assets (Real Estate, Commodities, Private Equity, etc.)
Following are the benefits:
- Low Correlation with Stock Markets – Alternative assets often move independently of traditional markets, helping mitigate volatility.
- Inflation Hedge – Real assets like gold and real estate tend to retain value during inflationary periods.
- Potential for High Returns – Private equity and hedge funds can offer substantial gains if managed well.
- Portfolio Customization – Some alternative investments allow direct control, such as real estate or private businesses.

Risks involved are as follows:
- Illiquidity – Many alternative assets, such as private equity and real estate, are not easily sold.
- Complexity – These investments often require specialized knowledge and due diligence.
- Higher Fees – Alternative investments may have higher management costs and entry barriers.
- Market Uncertainty – Some assets, like cryptocurrencies, can be highly volatile.

Given your methodical approach to financial planning, you might find international ETFs a convenient way to gain global exposure while managing risk. Similarly, REITs or commodity funds could be a structured way to enter alternative assets without direct ownership complexities.

...Read more

Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

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Money
I'm now 68 years old. Living with my wife. I have 2 daughters. Both are well settled. I don't have any liability. I'm a pension holder. I'm getting Rs 75,000/- pension pm. I have invested Rs1,50,00,000 in FD. 7lakhs in Mutual funds, 6,50,000 in equity. 12 Lakhs in Sovereign Gold Bond, I'm getting Rs 35,000/- House rent pm. I have 25 lakhs Cash in hand. I want to deposit the above amount. How can I diversified the above amount to deposit?
Ans: Your financial position is strong. You have a steady pension and rental income. Your investments are diversified across FDs, mutual funds, equity, and gold bonds. Let’s allocate your Rs. 25L wisely.

Emergency Fund Allocation
Keep Rs. 5L in a high-interest savings account.

Use a liquid mutual fund for another Rs. 3L for easy access.

This ensures quick access to funds in case of unexpected expenses.

Debt Investment for Stability
Invest Rs. 7L in a mix of short-term and medium-term debt mutual funds.

These offer better post-tax returns than FDs.

Choose high-quality funds with stable performance.

Equity Investment for Growth
Allocate Rs. 5L to large-cap mutual funds via SIP.

This ensures gradual market participation and reduces risk.

Avoid direct stocks for this amount, as mutual funds offer better risk management.

Gold Investment for Inflation Hedge
You already have Rs. 12L in Sovereign Gold Bonds.

No additional gold investment is needed.

Regular Income Investment
Invest Rs. 5L in SWP-based mutual funds for periodic withdrawals.

This provides additional income while keeping capital appreciation intact.

Final Insights
Your current portfolio is well-structured. This allocation balances liquidity, stability, and growth. Your pension and rental income provide financial security. Diversifying your Rs. 25L ensures better returns while maintaining risk control.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

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Money
Sir kindly suggest some mf for steady return for 5 yr in SIP in large cap
Ans: Investing in large-cap mutual funds through SIP is a stable choice. These funds focus on established companies with strong financials. They offer consistent growth with lower risk compared to mid-cap and small-cap funds.

Let’s assess how to select the right fund.

Why Large-Cap Funds for Five Years?
Invest in top companies with proven stability.

Less volatile than mid-cap and small-cap funds.

Suitable for a five-year investment horizon.

Provide inflation-beating returns over time.

Ideal for steady compounding with SIP investments.

Actively Managed vs. Index Funds
Actively managed funds outperform index funds in varying market conditions.

Fund managers adjust portfolios based on market trends.

Index funds only replicate the market and cannot outperform it.

Actively managed funds provide better downside protection.

For five-year investments, active management ensures stable performance.

Choosing the Right Fund
Look for funds with a history of stable returns.

Ensure the fund has an experienced fund manager.

Avoid funds with frequent manager changes.

Select funds with lower expense ratios among actively managed ones.

Check the rolling returns of the fund, not just past performance.

Tax Considerations
Long-term capital gains (LTCG) above Rs. 1.25 lakh taxed at 12.5%.

Short-term capital gains (STCG) taxed at 20%.

SIP investments held for over one year qualify for LTCG benefits.

Plan withdrawals strategically to reduce tax burden.

Final Insights
Large-cap mutual funds are suitable for stable returns over five years. They balance risk and reward effectively. Choose an actively managed fund with strong historical performance. Stay invested with SIPs for disciplined wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8175 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 01, 2025Hindi
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Money
Sir...I am 56 years old. I want to take voluntary resignation. I will get 45000 as monthly pension and Rs.75 lacs as lumpsum. I have own house and only son is working in TCS. Can i take VRS????
Ans: Your situation is strong. You have a stable pension, a lumpsum amount, and no housing worries. Your son is financially independent. Let’s evaluate your decision from all angles.

Monthly Cash Flow Analysis
You will receive Rs. 45,000 per month as a pension.

Your expenses must be assessed. If your monthly spending is less than Rs. 45,000, then pension alone can cover your needs.

If expenses are higher, you will need an income from your Rs. 75L corpus.

Inflation will increase costs over time. Your pension may not grow, so investment returns should outpace inflation.

Emergency Fund Planning
Keep at least 12 months of expenses in a safe place.

Use a combination of a bank savings account and a liquid mutual fund.

Avoid locking all your funds in long-term investments.

Investment Strategy for Rs. 75L
You must structure investments to generate income, ensure growth, and manage risk.

Allocate funds into mutual funds for long-term growth.

Use Systematic Withdrawal Plans (SWP) for steady income.

Diversify across large-cap, flexicap, and hybrid mutual funds.

Consider debt funds for stability.

Avoid high-risk sectoral/thematic funds for income needs.

Tax Efficiency
Pension is taxable as per your income tax slab.

Mutual fund withdrawals are taxed based on duration and type.

Keep SWP withdrawals below the taxable limit to minimize tax burden.

Use tax-saving instruments like PPF and senior citizen savings schemes if applicable.

Health Insurance and Medical Planning
Ensure you have a good health insurance plan.

A cover of Rs. 15-20L is advisable for senior years.

Maintain a separate emergency fund for medical needs.

Consider critical illness insurance for major health risks.

Estate Planning and Will Creation
Create a will to ensure smooth asset transfer.

Appoint a nominee for all investments and bank accounts.

Discuss future financial plans with your son.

Final Insights
Taking VRS is a viable option for you. Your pension provides a steady income. Your Rs. 75L can be invested wisely to support future needs. Focus on structured investments, tax efficiency, and health security. If planned well, this decision can give financial stability and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Mayank

Mayank Chandel  |2159 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Apr 02, 2025

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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