Will my 2-year gap affect job placements at NIT Warangal?

Ans: Hello;

You may reallocate your sip portfolio(request to increase it to 50 K monthly sip)as follows:

1. PPFAS flexicap fund: 15 K
2. Kotak Emerging Opportunities Fund: 15 K
3. Nippon India Small cap fund: 10 K
4. Sundaram Mid Cap fund: 10 K

All growth options.

For a 10 year horizon this is a good mix. Your allocation to PPF and NPS(non equity portion) are debt allocations in your overall asset allocation so no need for BAF & commodities here.

You may invest your FD corpus of 60 L in a equity savings type mutual fund (low to moderate risk) but better than FD returns.

It is recommended that you invest lumpsum of 3 L in Kotak Gold FOF/ETF.

After end of 10 years you may have combined corpus of 5.4 Cr. which may yield you a monthly income of 1.89 L (post-tax) if you buy an immediate annuity for your corpus. 6% annuity rate considered.

(Returns assumed as given: PPF-6.9%, NPS-9%, 3 yr SIP-10%, 10 year sip-13%, Gold-7%, Equity Savings Fund -9%)

Happy Investing;

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

The PPF and MF corpus may be utilised towards higher education requirement of your kid.

After 5 years the cumulative corpus of these investments will be 65 L+.

The monthly rental income may be used to pay for spouse requirement of 20 K per month.

You may initiate a monthly sip of 50 K in a combination of pure equity mutual funds and top-up the sip amount by minimum of 16% each year.

By the end of 12 years you may have a corpus of around 3.56 Cr.

If you utilise this amount to buy an immediate annuity from a life insurance company, you may expect to receive a monthly income of
1.24 L (post-tax) assuming 6% annuity rate.

Do continue the personal family healthcare cover (Min 50 L) which can be helpful with advancement in age.

Any EPF/NPS corpus will serve as your warchest to fight inflation in retirement.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

You may invest as follows:

1. Flexicap type mutual fund: 4 K
For eg PPFAS flexicap fund

2. Large and Midcap type mutual fund: 4 K
For eg Kotak Emerging Opportunities Fund

3. Small cap type mutual fund: 2 K
For eg Nippon India Small cap fund

If you need ELSS fund for 80-C purpose then you may replace flexicap fund with PPFAS elss scheme but note that it(any ELSS fund)carries lock-in of 3 years.

If you hold this investment till 20 years (18+prev 2) you may end up with a corpus of 86.32 L.

But if you top-up this monthly sip each year by 10% upto 20 years from now, you may expect a corpus of around 3 Cr+.

A modest return of 13% is considered from pure equity mutual funds.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Nilesh Dear Sir, It may be a bit premature to make a decision at this time. The decision can be made when your son is nearing the completion of his 8th Grade. All the BEST for Your Son's Prosperous Future.

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Ans: Hello;

You may do a monthly sip of 65 K into following type of mutual funds with the allocation as given:

1. Flexicap type mutual fund: 20 K
For eg PPFAS flexicap fund

2. Large and Midcap type mutual fund: 20 K
For eg Kotak Emerging Opportunities Fund

3. Midcap type mutual fund: 15 K
For eg Sundaram Mid Cap fund

4 Small cap type mutual fund: 10 K
For eg Nippon India Small cap fund

Funds suggested are from the top quartile, in terms of performance, in their respective category.

At the end of 14 years you may expect a corpus of 3.1 Cr assuming modest return of 13%.

After 10-12 years you must periodically transfer your gains to a liquid or ultra short duration debt fund to protect it against market volatility.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

Typically a single home insurance policy covers all co-borrowers of the home loan.

Presuming you both are co-owners and are jointly repaying the home loan as co-borrowers, then it is prudent to have home loan insurance coverage for both.

Best wishes;

Ans: Hello;

1. If you invest 42 K in a pure equity mutual fund through monthly sip then you may expect to achieve your target in 10 years.

Other options are:

2. You may start a monthly sip of 25 K and top it up each year by 14%(Minimum) upto 10 years, you will attain 1 Cr after 10 years.

3. You may start a monthly sip of 30 K and top it up each year by 9%(minimum)upto 10 years to reach the intended target.

A modest return of 13% is considered from pure equity mutual funds.

Happy Investing;

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Yes. You have to. However, before enrolling in any Online Certification Course, conduct thorough research on LinkedIn by creating job alerts relevant to your domain. Examine the job descriptions for each vacancy to determine what additional skills are necessary based on current job market trends. Then, pursue certificates to attain such skills. All the BEST for Your Prosperous Future.

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