mait cse or jiit cse??????

Ans: Hi,
I have a few doubts; kindly clarify. Did you complete HSC or not? If yes, please share your marks and explain why you prefer NIOS.
with regards.

Ans: Hello and thank you for writing to me.

A 5-year investment period is considered a moderate investment horizon . Equity mutual funds can help generate good returns over this period, though returns may vary as they are linked to market performance and markets can remain volatile in the short term. Hence, it is better to invest in diversified funds.

For a monthly SIP of ?5,000, it is generally advisable to invest in diversified equity-oriented categories that provide a balance between growth and stability. You may consider investing across categories such as Flexicap Funds or Large & Midcap Funds.

* Kotak Flexi Cap Fund
* HDFC Flexi Cap Fund
* Mirae Asset Large & Midcap Fund
* DSP Large & Mid Cap Fund

These funds invest across different market capitalisations and help manage risk better over a medium-term horizon.

It is important to stay disciplined with SIP investments and review the portfolio periodically, rather than reacting to short-term market movements.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Ans: It takes courage to explain such a situation clearly, especially at your age. This problem is serious, but it is not the end. With the right steps, damage can be controlled and stability can slowly come back.

» Understanding the real problem
– Monthly income is around Rs 1.3–1.4L
– Monthly EMI is around Rs 2.01L, which is much higher than income
– Household expenses of Rs 30–35k are reasonable and not the issue
– All loans are unsecured personal loans, which usually have very high interest
– New loans were taken only to pay old EMIs, creating a debt trap
– No lender is willing to give further loans, which means the cycle has hit a wall

This is not a cash flow problem alone. This is a structural debt problem.

» Why the situation is getting worse every month
– EMI is higher than income, so default is unavoidable
– Unsecured loans grow fast because of high interest
– Paying EMI by taking another loan only increases total outstanding
– Stress and pressure often delay tough but necessary decisions

This is not about discipline or effort. The numbers simply do not support continuation.

» Immediate actions that must be taken
– Stop taking any new loan under any condition
– Stop using credit cards, overdrafts, or informal borrowing
– Keep aside money only for food, electricity, and basic needs
– Do not promise EMIs that cannot be honoured

Missing EMIs is emotionally hard, but continuing like this is financially destructive.

» How to handle lenders and EMIs
– Do not avoid calls, but communicate calmly
– Explain income reality and inability to pay current EMI
– Request restructuring, lower EMI, or temporary relief
– Some lenders may not agree immediately, but communication matters

Paying something small is better than paying nothing, but only if it does not create new debt.

» Role of assets in this situation
– You mentioned a house and two agricultural lands
– These are not investments right now; they are safety tools
– When unsecured debt becomes unmanageable, asset-based resolution becomes necessary
– Clearing high-interest unsecured loans is more important than holding assets under pressure

This is not a loss of status. This is a step to protect the family’s future.

» What should NOT be done
– Do not take loans from friends or relatives to pay EMIs
– Do not fall for private lenders promising quick money
– Do not put pressure on yourself as a 20-year-old student to fix everything
– Do not ignore the problem hoping income will suddenly rise

Hope without action only increases damage.

» Your role as a student and family member
– Your focus should remain on education and skill building
– Do not sacrifice your future to solve today’s crisis
– Emotional support to your father is important, not financial burden
– Decisions should be taken by elders with professional guidance

This problem was created over time and must be solved structurally, not emotionally.

» Long-term correction mindset
– Unsecured debt must be reduced drastically
– Once stability comes, no borrowing without repayment capacity
– Emergency fund should be built slowly in future
– Insurance and savings come only after debt control

Right now, survival and stabilisation are the priorities.

» Final Insights
– The current EMI level is not sustainable under any scenario
– Continuing the same approach will only increase stress and debt
– Tough decisions taken now can prevent permanent damage
– This phase will pass if addressed directly and honestly
– You are asking the right questions early, which itself gives hope

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Your income level, age, and intent to plan early give you a strong base. With the right structure and discipline, the next 10 years can meaningfully strengthen your financial position.

» Understanding your current position
– At 46, you still have a healthy time window for growth-oriented investing
– Annual package of Rs 50L gives good monthly surplus potential
– Having a running home loan and insurance already shows responsibility
– Now the focus should be on clarity, efficiency, and alignment of investments

» Building a strong SIP strategy for the next 10 years
– For a 10-year horizon, mutual funds are suitable, especially when investments are done through SIP
– SIP helps in managing market ups and downs and builds discipline
– The goal here should be wealth creation, not just saving

Key approach to SIP planning
– Divide investments across equity-oriented and hybrid-oriented mutual funds
– Equity-oriented funds help in growth and inflation protection over 10 years
– Hybrid funds add balance and reduce sharp volatility
– Avoid keeping everything in one style or one category

Allocation guidance
– Majority portion can go towards equity-oriented mutual funds since your income is strong and time horizon is 10 years
– A smaller portion can be in hybrid-oriented funds for stability
– Avoid frequent changes; review once a year
– Increase SIP amount gradually as income grows

Important behavioural aspects
– Do not stop SIP during market corrections
– Market volatility in between is normal and temporary
– SIP works best when continued with patience

Tax understanding (only for awareness)
– Equity mutual funds held for more than one year attract LTCG tax above Rs 1.25 lakh at 12.5%
– Short-term gains are taxed at 20%
– This should not stop you from equity exposure, but should be planned smartly

» Review of home loan linked insurance policy
– You were made to take an insurance cover of Rs 45L linked to the home loan
– Premium of Rs 72K annually for 10 years is a high commitment
– The policy has a premium return option, which often looks attractive but needs careful evaluation

Key observations
– The primary purpose of insurance is protection, not return
– Loan-linked insurance policies are usually expensive compared to pure protection options
– Premium return feature does not mean free insurance; cost is built into premiums
– Coverage is tied to loan, not to your family’s full financial needs

Concerns with continuing this policy
– Rs 72K per year is a significant cash outflow
– Insurance cover reduces as loan reduces, but premium usually remains same
– Returns from such policies are often low when compared to long-term mutual fund investing
– It limits flexibility

Better way to think about insurance
– Insurance should be simple, adequate, and cost-efficient
– Investment and insurance should ideally be kept separate
– This allows better transparency and control

Whether to continue or not
– If the policy has already completed many years, surrender value and penalties must be reviewed before taking action
– If still in early years, continuing purely for premium return may not be efficient
– A detailed policy review is needed before deciding to continue or exit

» How SIP and insurance decisions should work together
– Money saved from high-cost insurance premiums can improve SIP strength
– Better cash flow gives better flexibility
– Protection should cover family responsibilities, not just loan amount
– Investments should work for growth, not lock-in

» Other important points for a 360-degree view
– Keep adequate emergency fund separate from SIPs
– Health insurance should be sufficient and independent
– Avoid mixing insurance products with investment goals
– Review plan annually, not frequently

» Finally
– Your intention to plan now is timely and sensible
– A well-structured SIP plan over the next 10 years can create a meaningful corpus
– Insurance decisions should be based on protection value, not returns
– With clarity and consistency, you can comfortably balance loan obligations, protection, and wealth creation

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Hi Neeraj,

You are badly trapped in a debt cycle.
Your monthly income - 1.6 lakhs; Expenses - 30k; EMIs - 57k per month and another outstanding loan of 21 lakhs.

I would like to know if your spouse also earns? If she can help in any way financially to get rid of these loans faster.

If no, you can start following this strategy.
You are still left with 60k in hand after all expenses and emis.

We will use 40k from the balance 60k for prepaying laons and 20k for building a future safety net.
>> Try and finish loan 2 first by paying 40k additional for 2 months. Will be done by May month.
> Once it is done, you will have free emi of 10845 and 40k - total 50k per month. Use this amount to finish loan 3.
It will be done by July.
>> Now you have 50k + 10k from loan 3 emi - total 60k. Close loan 4 and 1 as well. Once all these loans are done, by 2027 maximum, you wil have 57k + 40k. Use this entire amount to pay relatives loan every month.
You will br debt free in another 2 years.

From remaining 20k, start building an emergency corpus. Park 20k in FD for 10 months. You will have 2 lakhs as your emergency fund.
Once this is done, start investing 20k per month in equity mutual funds for your secured future.

This way, you can finsih off your loans fast and wisely.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Being an NRI, a single earning member, and a parent of two young children, you are already thinking responsibly. Your current savings show discipline. With the right structure, education goals can become much lighter and stress-free over time.

» Current Financial Snapshot Assessment
– You have strong liquidity across FD, bank balance, and overseas savings
– Equity exposure is currently low compared to your age and long-term goals
– Having no high-cost insurance products is a positive starting point
– Overseas funds give flexibility but need alignment with Indian goals like children’s education

» Priority One – Protection Before Investment
– As a lone breadwinner, term insurance is non-negotiable
– Adequate life cover ensures children’s education continues even if income stops
– Pure term insurance is cost-efficient and simple
– Health cover should be ensured for family, even if employer cover exists abroad

» Emergency and Stability Bucket
– Keep emergency money equivalent to 6–9 months of expenses
– This can stay in FD and high-liquidity options
– Your existing FD and bank balance are more than sufficient for this need
– Avoid using this portion for market-linked investments

» Suggested Asset Allocation Direction
– At age 35, long-term goals allow meaningful equity exposure
– A balanced direction could be:

Around 30–35% in stable instruments like FD and similar options

Around 60–65% in well-managed equity-oriented mutual funds

Around 5% for direct stock exposure only if you track markets regularly
– Overseas funds can be aligned in similar proportion, not left idle

» Mutual Funds for Children’s Education
– Education is a long-term goal with rising costs
– Equity-oriented mutual funds suit this goal better than fixed options
– Start separate investments mentally for each child
– Use staggered investments instead of lump sum to manage market swings
– Stay invested till the goal is near, then gradually reduce risk

» Use of Overseas Funds
– Do not rush to bring all foreign money into India at once
– Part of it can be invested gradually in India through proper NRI channels
– Another part can remain abroad for currency diversification
– What matters is goal alignment, not location of money

» Review of Current MF and Stock Exposure
– Current MF allocation is too small to make a long-term impact
– Increase mutual fund contribution steadily, not aggressively
– Direct stocks should remain limited unless you actively monitor them
– Focus more on professionally managed funds for consistency

» Tax Awareness for Mutual Funds
– Equity mutual fund gains beyond Rs.1.25 lakh are taxed at 12.5% for long term
– Short-term equity gains are taxed at 20%
– This makes long-term holding more rewarding and predictable

» 360-Degree Education Planning View
– Combine insurance, disciplined investing, and time
– Do not mix education money with short-term needs
– Review allocation once a year as income and responsibilities change
– Stay simple and consistent rather than chasing returns

» Final Insights
– You are well placed financially, the structure just needs refinement
– Increasing equity exposure gradually will ease future education pressure
– Protect income first, then grow money patiently
– With discipline and timely reviews, children’s education can be comfortably managed

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Appreciate your thoughtful planning and the clarity in your question. Using STP for gradual equity entry shows discipline and risk awareness. Your concern after the 2026 Budget is valid and shows you are tracking changes closely.

» Understanding Arbitrage Funds after the 2026 Budget
– Arbitrage funds work by buying shares in cash market and selling them in futures market to earn low-risk return
– The 2026 Budget has increased transaction costs in F&O, which has slightly reduced arbitrage spreads
– This means returns from arbitrage funds may be a bit lower than earlier, but the risk profile remains low
– From a taxation point of view, arbitrage funds are still treated as equity funds
– For short-term parking and STP purpose, they continue to be tax efficient compared to debt options

» Suitability of Arbitrage Funds for STP Today
– Despite higher F&O costs, arbitrage funds are still suitable for STP when market volatility is high
– They protect capital better than pure equity-oriented options during the STP period
– For investors who want stability while moving money slowly into equity, arbitrage funds still serve the role well
– The key expectation shift is to accept modest returns during the STP phase, not high growth

» What Are Equity Savings Funds
– Equity Savings funds invest in three parts: equity, arbitrage strategies, and debt
– The aim is to reduce volatility while giving slightly better return potential than arbitrage funds
– They maintain equity exposure above required levels, so they also enjoy equity taxation
– These funds can move up and down in short term, unlike arbitrage funds which are more stable

» Equity Savings vs Arbitrage for STP
– Arbitrage funds are more stable and predictable, suitable when you are very cautious
– Equity Savings funds can show short-term fluctuations, so STP value may vary month to month
– If markets correct during STP, Equity Savings funds may see temporary dips
– For conservative investors, arbitrage funds remain the safer STP source
– For moderately comfortable investors, Equity Savings funds can be considered as an alternative

» Duration of STP into Flexicap Fund
– STP duration should match your comfort with market ups and downs
– For Rs.5 lacs, spreading STP over 6 to 12 months is generally sensible
– Longer STP helps manage timing risk if markets are volatile or expensive
– Avoid rushing the transfer just to complete STP quickly
– The goal is smooth entry, not chasing short-term market levels

» 360-Degree View on Your Approach
– Your decision to avoid lump sum equity entry is sensible
– Choosing STP shows patience and long-term thinking
– Focus should remain on staying invested in the target equity fund for long duration after STP
– Short-term fund choice is only a transit arrangement, long-term discipline matters more

» Final Insights
– Arbitrage funds are still relevant and tax efficient for STP even after the 2026 Budget
– Equity Savings funds can be alternatives, but with slightly higher short-term risk
– Choose based on your comfort with temporary volatility, not just return expectation
– Keep STP period reasonable and stay committed to the long-term equity goal

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Hi Anjan,

Sadly this is how LIC works. Pay the balance amount in whatever way you can at the earliest to avoid getting problems in December.
Being a public co., it will take months to get your money back if you delay paying the due amount. It can be forfeited as well.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: There is not much scope after doing part time or Online MBA unless she is looking for promotion in her company or she has a good relevant work experience for her new job. If possible it is better to do 1 year executive MBA after writing GMAT. Only if that is not possible then she can look at options of doing part time / online mba. For Part time MBA JBIMS is the best option in Mumbai.