Dear Mayank Sir,
I am a college student and my summer vacations are currently going on.
Last year, I had applied for a few internships through a popular internship website and got selected for three. Of these, I chose one which promised to teach marketing skills but I got ripped off. It was a con job where we had to spend our own money making phone calls and eventually didn’t even get reimbursed, forget getting paid.
How does one directly approach companies for internships so that they take you seriously, especially when you don’t have experience?
Thank you.
Wayne

Ans: Please explain more about your question to answer in detail

Ans: The SBI Life Smart Privilege Plan is a unit-linked insurance plan (ULIP) offering life cover and investment options. Let’s analyse its features, benefits, limitations, and suitability from a Certified Financial Planner’s perspective.

Key Features of SBI Life Smart Privilege
Premium Payment Flexibility

Offers single or regular premium payment options.
You can choose to invest as per your convenience.
Investment Fund Options

Provides the choice of multiple funds, such as equity, debt, and balanced funds.
You can switch between funds based on market conditions or goals.
Partial Withdrawals

Allows partial withdrawals after the 5th policy year for unforeseen needs.
Life Cover

Offers a sum assured to provide financial security to dependents.
Tax Benefits

Premiums qualify for deductions under Section 80C.
Maturity proceeds may also be tax-free under Section 10(10D), subject to terms.
Advantages of SBI Life Smart Privilege
Dual Benefit: Combines life insurance with market-linked returns.
Flexibility: Offers fund switching and top-up premium options.
Professional Fund Management: Funds are managed by expert professionals.
Market Participation: Provides an opportunity to benefit from equity market growth.
Limitations of SBI Life Smart Privilege
High Costs

ULIPs involve charges like premium allocation, fund management, and mortality charges.
These reduce overall returns compared to direct mutual funds.
Lock-In Period

Mandatory 5-year lock-in for ULIPs restricts liquidity.
Early surrender leads to penalties or reduced returns.
Limited Transparency

Returns depend on fund performance, which may not be predictable.
Lower Flexibility in Insurance

Term insurance offers better coverage at a lower cost.
Tax Benefits Caveats

If annual premium exceeds Rs. 2.5 lakh, proceeds are taxable.
Better Alternative: Mutual Funds with Term Insurance
Instead of ULIPs like SBI Life Smart Privilege, consider:

Mutual Funds for Investments

Mutual funds are transparent, cost-effective, and provide better long-term returns.
Choose actively managed funds aligned with your financial goals.
Term Insurance for Protection

Term plans provide higher life cover at a lower premium.
This ensures adequate financial security for your family.
Why Mutual Funds Are Superior
Low Expense Ratios

Mutual funds have significantly lower costs compared to ULIPs.
No Lock-In for Most Options

Except for ELSS, most mutual funds provide liquidity without lock-in.
Customisable Portfolio

You can diversify investments across equity, debt, and hybrid funds.
Higher Returns

Actively managed funds have the potential for better market-linked returns.
Suitability of SBI Life Smart Privilege
SBI Life Smart Privilege may suit individuals who:

Prioritise insurance and investment in one product.
Can handle higher costs and lock-in.
Lack time or expertise to manage mutual funds and insurance separately.
However, for most investors, separating investment and insurance yields better flexibility, transparency, and returns.

Final Insights
While SBI Life Smart Privilege offers dual benefits, the high costs and limited flexibility make it less attractive. Opt for mutual funds for investments and term insurance for life cover. This strategy ensures better returns and financial protection.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You have Rs. 30 lakh in hand, which is a substantial amount. Effective utilisation of this amount will ensure growth, safety, and fulfilment of financial goals. Below is a 360-degree assessment of the options available.

Assess Your Goals
Short-Term Goals: Identify immediate needs within the next 1–3 years. Examples include buying a car, education fees, or building an emergency fund.

Medium-Term Goals: These cover needs in 3–7 years, like home renovation or starting a business.

Long-Term Goals: Consider goals like retirement planning or your child’s higher education, which need over 7 years to achieve.

Risk Appetite: Determine how much risk you are comfortable with. Balancing risk and returns is essential.

Allocation of Funds
Emergency Fund
Allocate Rs. 5 lakh to create or enhance your emergency fund.
Keep this in high-liquidity options like a bank savings account, fixed deposits, or liquid mutual funds.
This ensures easy access during emergencies.
Short-Term Investments
Reserve Rs. 5 lakh for short-term needs.
Invest in ultra-short-duration debt funds, recurring deposits, or treasury bills.
These provide better returns than savings accounts and low volatility.
Medium-Term Investments
Assign Rs. 8–10 lakh for medium-term goals.
Opt for balanced or conservative hybrid mutual funds.
These offer moderate returns and stability, balancing equity and debt.
Long-Term Growth Investments
Invest Rs. 10–12 lakh for long-term wealth creation.
Choose equity mutual funds through systematic investment plans (SIPs) or lump sum investments.
Use diversified, small-cap, or multi-cap funds for higher growth.
Tax-Efficient Options
Public Provident Fund (PPF)

Consider investing Rs. 1.5 lakh annually to take advantage of tax-free returns.
The lock-in period aligns with long-term financial goals.
Equity-Linked Savings Scheme (ELSS)

Allocate Rs. 1.5 lakh to ELSS mutual funds for tax benefits under Section 80C.
These have a 3-year lock-in period and equity exposure.
Investment Strategy
Diversification: Spread your investments across asset classes like equity, debt, and gold for risk management.

SIP Approach: Use SIPs for equity mutual funds to average out market volatility.

Avoid High-Risk Products: Refrain from investing in highly volatile instruments like direct equities or cryptocurrencies unless you have expertise.

Exclude Direct Mutual Funds
Direct funds seem appealing due to lower expense ratios.
However, investing through a Certified Financial Planner (CFP) provides valuable guidance.
A CFP ensures proper fund selection, rebalancing, and achieving goals effectively.
Exclude Index Funds
Index funds track market indices and offer average returns.
Actively managed funds outperform in dynamic markets with expert fund management.
Stick to actively managed funds for higher long-term growth.
Insurance Coverage
Health Insurance

Ensure comprehensive health coverage for your family.
This avoids dipping into savings during medical emergencies.
Life Insurance

Secure term insurance to protect your family financially.
Avoid investment-linked insurance products like ULIPs.
Monitoring and Rebalancing
Review your portfolio semi-annually or annually.
Rebalance asset allocation based on market performance and life changes.
Seek guidance from a CFP for accurate portfolio assessment.
Final Insights
A structured approach to your Rs. 30 lakh ensures financial security and growth. Prioritise emergency liquidity, medium-term stability, and long-term wealth creation. Monitor progress regularly and adjust based on your evolving financial needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: 01. it is advisable for you to gift the amount to your son or daughter-in-law (Father or Mother of the student). There would not be any income tax complications for you. Please adopt banking channels for this transaction.
02. They in turn should pay the fees of their daughter studying in USA.
Most welcome for any further clarifications. Thanks.

Ans: 01. Kindly generate or get Capital Gain statement from the company in which you have invested the amount. It shall show the LTCG, based on the period of your investment. LTCG rate is 12.50%.
02. Since you are withdrawing only Rs.1.00. lakh only & LTCG is exempt up to Rs.1.25 lakhs, there shall be no Income Tax in this case (F/Y 2024.25).
Most welcome for any further clarifications. Thanks.

Ans: Try to contact his friends or seniors and check if there are openings that they have. A lot of openings get filled using network. Can also do some courses that are relevant to his field in the mean time.

Ans: BITS is a good college. Can take it up if you plan to continue with your career abroad. If you plan to continue in India then look for Indian based colleges.

Ans: You may Gift any amount to your Grand Daughter through banking channels (Cheque, DD, Online transfer etc.). It shall not attract any Income Tax payment.
Most welcome for any further clarifications. Thanks.

Ans: Essential oils can enhance your yoga practice by creating a calming and uplifting environment. Here’s how a beginner can start using them:

Use a Diffuser: Add a few drops of essential oil to a diffuser before your practice. This fills the room with a soothing aroma and sets the mood for yoga. Lavender, chamomile, and sandalwood are great for stress relief.

Dilute and Apply to Skin: Mix 2-3 drops of essential oil with a carrier oil like coconut or almond oil, then gently apply to your wrists, temples, or the back of your neck. Peppermint or eucalyptus oil can help you feel refreshed and focused.

Mat Spray: Create a spray by mixing water with a few drops of essential oil. Spritz it lightly on your yoga mat for a pleasant scent while practicing.

For stress relief, lavender and frankincense are excellent. To feel more energized or flexible, citrus oils like orange or bergamot can help. Always start with a small amount to ensure you’re comfortable with the scent.

It’s best to consult a yoga coach to learn how essential oils can complement your practice safely and effectively. Their guidance will ensure a balanced and holistic approach.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/