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Sushil Sukhwani  |438 Answers  |Ask -

Study Abroad Expert - Answered on Mar 27, 2024

Sushil Sukhwani is the founding director of the overseas education consultant firm, Edwise International. He has 31 years of experience in counselling students who have opted to study abroad in various countries, including the UK, USA, Canada and Australia. He is part of the board of directors at the American International Recruitment Council and an honorary committee member of the Australian Alumni Association. Sukhwani is an MBA graduate from Bond University, Australia. ... more
Akash Question by Akash on Mar 20, 2024Hindi

Good morning My younger brother done his MSC in microbiology biology and looking for phd in usa or uk . Kindly suggest good country as weel after PhD good opportunity for job their in same. Kindly help me to know fees and any scholarship.

Ans: Hello Akash. Thank you for reaching out to us. Coming to the question, let me tell you that we don’t offer PhD counseling at the moment, but we can surely assist you with bachelor’s or master’s program in your brother's field of choice.

For further assistance, you can get in touch with us

You may like to see similar questions and answers below

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Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 18, 2024Hindi
Hello Gurus, I need one investment strategy. I am 31 years old. Having 1 kid and home maker wife. I am continuously investing 1.5LPA in PPF. In EPF I put 1.44LPA . I have SIPs 17k per month in blue chip, debt fund, equity one. 12.5k RD is also there. I also invested regularly in SGB. I am having 50 unit SGB. I am not having any loan right now. Planning to take a term plan shortly for securing future of my family and kid. Having 2 inherited flat. Having good mediclaim of my whole family and parents. Kindly let me know if i am in right way! Having wish of investing in real estate soon. Pls let me know.
Ans: Let's assess your current investments and provide a strategy to ensure you are on the right track.

Current Financial Overview
Age: 31 years

Family: Homemaker wife and one child

PPF Contribution: Rs 1.5 lakh per annum

EPF Contribution: Rs 1.44 lakh per annum

SIPs: Rs 17,000 per month (blue chip, debt fund, equity fund)

Recurring Deposit (RD): Rs 12,500 per month

SGB Investment: 50 units

Loans: None

Insurance: Planning to take a term plan

Mediclaim: Good coverage for family and parents

Real Estate: Two inherited flats

Assessment of Current Investments
1. PPF and EPF:

These provide stable, long-term, tax-free returns.

Continue maxing out contributions to these accounts.

2. SIPs in Mutual Funds:

Diversified across blue chip, debt, and equity funds.

Ensures balanced risk and potential for growth.

3. Recurring Deposit:

Provides stable and guaranteed returns.

Good for short to medium-term goals.

4. Sovereign Gold Bonds (SGB):

Provides safety and steady returns.

Acts as a hedge against inflation.

1. Continue Current Investments:

Maintain contributions to PPF and EPF.

Keep SIPs in mutual funds for diversified growth.

Continue investing in RD and SGB for stability and security.

2. Term Plan:

A term plan is essential for securing your family's future.

Ensure coverage is adequate to meet future financial needs.

3. Increase SIP Amounts:

As income grows, increase SIP contributions.

This enhances the growth potential of your investments.

4. Avoid Real Estate:

Real estate involves high costs and liquidity issues.

Focus on liquid and high-growth investments instead.

Additional Investment Strategies
1. Emergency Fund:

Maintain an emergency fund equal to 6 months of expenses.

This provides a financial cushion against unforeseen events.

2. Child's Education and Marriage:

Start an SIP in a diversified equity mutual fund.

This will cater to long-term goals like education and marriage.

3. Retirement Planning:

Consider starting an NPS account.

It offers additional tax benefits and supports retirement goals.

4. Health Insurance:

Ensure your mediclaim policy covers all critical health needs.

Review the policy regularly for adequate coverage.

Risk Management
1. Diversification:

Ensure your portfolio is diversified across asset classes.

This reduces risk and improves potential returns.

2. Regular Review:

Review your investment portfolio every 6 months.

Adjust based on performance and changing financial goals.

Tax Planning
1. Tax-Saving Investments:

Utilize Section 80C to its fullest with PPF, EPF, and ELSS.

Explore other tax-saving instruments like NPS and health insurance.

2. Efficient Withdrawal Strategy:

Plan withdrawals from investments to minimize tax liability.
Final Insights
You are on the right track with diversified investments and no debt. Focus on increasing SIP contributions, maintaining emergency funds, and securing adequate insurance. Avoid real estate and continue with your current strategy for steady growth and financial security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 17, 2024Hindi
Hi Mam, I'm 43+, Monthly take home is around 3.20 Lacs, Currently i have invested in Shares (Current Portfolio is around 1.75 Crs). EMI is around 1.1 lacs P/m (Home loan 1 - 50K per month till 2037, 30K car loan till 2027 (Planning to close this year by paying 13 lacs, please suggest if this option of preclosure is good or EMI is good, will be paying this amount by selling some shares), 30k per month of home 2 till 2040., Recently i have started investing in SIP 1 lacs P/M, and balance 1.20 lacs goes in house, kids education expense. Have EPF balance of 40 lacs as on date. As mentioned above recently i have started investing in SIP (From Oct 2023 onwards), which is at the tune of 1 lacs per month. SIP are Franklin India Prima Fund regular Plan - Growth - 25K, ICICI Prudential Small cap fund retail plan G - 25K, Kotak Multicap fund regular plan growth - 15K, DSP Blackrock mid cap fund regular plan growth - 10 K, and Parag Parikh Flexi Cap fund - Regular plan growth - 25 K. Will increase the SIP investment by 10% every year going forward. Sir, My question is with current SIP investment will i be able to generate 10~12 Cr corpus fund by retirement (Assuming that i will be in Job and working for next 15 years). Current Share portfolio is for long term investment only (assuming i get 12~15% of return every year). Please note : will be spending around 1~1.5 cr for my Son education in engineering from 2027 to 2031, 50% will be spend from savings and balance 50% from education loan.
Ans: Financial Snapshot
Age: 43+
Monthly Take Home Salary: Rs 3.20 lakhs
Current Investment in Shares: Rs 1.75 crores
EMI Payments: Rs 1.1 lakhs per month
Home Loan 1: Rs 50,000 till 2037
Car Loan: Rs 30,000 till 2027 (planning to close this year)
Home Loan 2: Rs 30,000 till 2040
Monthly SIP Investment: Rs 1 lakh (started Oct 2023)
Monthly Household and Education Expenses: Rs 1.20 lakhs
EPF Balance: Rs 40 lakhs
Expected Expenses for Son's Education: Rs 1-1.5 crores (2027-2031)
Assessing Current Investments
Share Portfolio:

Value: Rs 1.75 crores
Assumed Annual Return: 12-15%
Long-term growth potential is strong. Continue holding for compounding benefits.
SIP Investments:

Started in Oct 2023
Current SIP of Rs 1 lakh per month in a diversified mix of funds
Analyzing Loan Preclosure Option
Car Loan Preclosure:

Current EMI: Rs 30,000 per month till 2027
Preclosure Amount: Rs 13 lakhs (consider selling some shares)
Pros of Preclosure:

Reduces monthly EMI burden
Saves interest costs
Cons of Preclosure:

Selling shares might impact portfolio growth
Evaluate if share sale aligns with long-term goals

If interest rate on car loan is high, preclosure can be beneficial.
Ensure share sale does not significantly affect long-term portfolio growth.
Evaluating SIP Investments
Current SIP Allocation:

Franklin India Prima Fund: Rs 25,000
ICICI Prudential Small Cap Fund: Rs 25,000
Kotak Multicap Fund: Rs 15,000
DSP Blackrock Mid Cap Fund: Rs 10,000
Parag Parikh Flexi Cap Fund: Rs 25,000
Plan to Increase SIP by 10% Annually:

This is a good strategy. It helps to combat inflation and increase your corpus over time.
Active vs. Index Funds:

Advantages of Actively Managed Funds:
Potential to outperform market
Professional management
Disadvantages of Index Funds:
Passive tracking of the market
No chance to outperform during market rallies
Projected Retirement Corpus

Monthly SIP: Rs 1 lakh (increasing by 10% annually)
Investment Horizon: 15 years
Average Annual Return: 12-15%

Estimated Corpus at Retirement:
With a 12% annual return: Approximately Rs 10-12 crores
With a 15% annual return: Potentially higher than Rs 12 crores
Financial Planning for Son's Education
Expected Expenses:

Rs 1-1.5 crores over 4 years (2027-2031)
Plan to use 50% savings and 50% education loan

Start a dedicated education fund
Consider balanced or hybrid funds for stability and growth
Ensure this fund aligns with the investment horizon and risk tolerance
Final Insights
Your current investment strategy is strong.
Increasing SIP contributions annually is a prudent move.
Evaluate the car loan preclosure option based on interest rates and long-term goals.
Maintain a diversified portfolio to balance risk and growth.
Regularly review your investments with a Certified Financial Planner to stay on track.
By following these steps, you should be well-positioned to achieve a corpus of Rs 10-12 crores by retirement. Additionally, planning for your son's education expenses with a dedicated fund will ensure financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

How to invest money in mutual fund and stock market
Ans: Investing in mutual funds and the stock market can be rewarding. Here’s a step-by-step guide to help you get started.

Understanding Mutual Funds
Mutual funds pool money from many investors. Professional managers invest this money in stocks, bonds, or other assets.

Benefits of Mutual Funds
Diversification: Reduces risk by spreading investments.

Professional Management: Experts manage your money.

Flexibility: Various types to suit different goals.

Steps to Invest in Mutual Funds
Define Your Goals: Know your financial goals and time frame.

Assess Risk Tolerance: Understand your risk capacity.

Choose the Right Fund: Based on your goals and risk tolerance.

KYC Compliance: Complete Know Your Customer (KYC) process.

Open an Account: With a mutual fund company or a certified financial planner.

Start SIP: Set up a Systematic Investment Plan (SIP) for regular investments.

Monitor and Review: Regularly check and adjust your portfolio.

Types of Mutual Funds
Equity Funds: Invest in stocks. Suitable for long-term goals.

Debt Funds: Invest in bonds. Suitable for short-term goals.

Hybrid Funds: Combine stocks and bonds. Balanced approach.

ELSS Funds: Equity Linked Savings Scheme. Offers tax benefits.

Understanding Stock Market Investments
Investing in stocks means buying shares of companies. You become a partial owner of the company.

Benefits of Stock Market Investments
High Returns: Potential for significant gains.

Ownership: You own a part of the company.

Liquidity: Easy to buy and sell shares.

Steps to Invest in the Stock Market
Educate Yourself: Learn about the stock market and how it works.

Open a Demat and Trading Account: With a brokerage firm.

Research Stocks: Study companies, their performance, and future prospects.

Start Small: Begin with a small investment to understand the process.

Diversify: Don’t put all your money in one stock.

Regular Monitoring: Keep track of your investments.

Stay Informed: Follow market news and trends.

Disadvantages of Direct Stocks Over Mutual Funds
High Risk: Individual stocks are more volatile and can lead to significant losses.

Time-Consuming: Requires constant research and monitoring.

Lack of Diversification: Investing in a few stocks doesn’t spread risk effectively.

Emotional Decisions: Investors may make impulsive decisions based on market swings.

Requires Expertise: Understanding the market and picking the right stocks needs knowledge.

Tips for Successful Investing
Long-Term Focus: Avoid short-term market fluctuations.

Consistent Investing: Regular investments yield better results.

Avoid Herd Mentality: Don’t follow the crowd blindly.

Stay Informed: Keep learning and adapting to market changes.

Seek Professional Advice: A certified financial planner can provide valuable guidance.

Final Insights
Investing in mutual funds and the stock market requires knowledge, discipline, and regular monitoring. By following these steps and staying informed, you can make sound investment decisions and achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Im 32 year old working with a companty. I ve started two sips ( 5000 each from May 2024) both in Small Cap ( Nippon Small Cap and Tata Ethical Fund . Is this correct way to do inveor i need diversification.
Ans: Current Investment Overview

You are 32 years old and working with a company. You have started two SIPs of Rs. 5,000 each, both in small cap funds: Nippon Small Cap and Tata Ethical Fund, since May 2024. It's great that you have taken the initiative to invest regularly through SIPs.

Need for Diversification

Investing in small cap funds can offer high returns but also comes with higher risk. It's important to diversify your investments to reduce risk and achieve more balanced growth. Here's why and how you can diversify:

1. Diversification Benefits

Risk Reduction: Diversification helps spread risk across different asset classes.

Balanced Growth: Different types of funds perform well at different times. Diversification ensures you benefit from various market conditions.

Stability: A diversified portfolio provides more stability and consistent returns over the long term.

2. Suggested Diversification Strategy

To achieve diversification, consider adding funds from different categories:

Large Cap Funds

Why: Large cap funds invest in well-established companies. They offer more stability and lower risk compared to small cap funds.

Suggested Allocation: Allocate around 30-40% of your monthly investment to large cap funds.

Mid Cap Funds

Why: Mid cap funds invest in medium-sized companies. They provide a balance between the high growth potential of small caps and the stability of large caps.

Suggested Allocation: Allocate around 20-30% of your monthly investment to mid cap funds.

Multi Cap or Flexi Cap Funds

Why: These funds invest across large, mid, and small cap stocks, providing diversification within the equity segment.

Suggested Allocation: Allocate around 20-30% of your monthly investment to multi cap or flexi cap funds.

Debt Funds

Why: Debt funds offer stability and regular income. They reduce the overall risk of your portfolio.

Suggested Allocation: Allocate around 10-20% of your monthly investment to debt funds.

3. Reviewing Your Portfolio

Regularly review and rebalance your portfolio to ensure it aligns with your financial goals and market conditions. Consulting a Certified Financial Planner (CFP) can help you optimize your investment strategy.

Final Insights

Your current investment in small cap funds shows a willingness to take on higher risk for potential high returns. However, it's important to diversify your portfolio to achieve balanced growth and reduce risk. Add large cap, mid cap, multi cap, and debt funds to your investment mix. This will provide stability and help you achieve your financial goals more effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 16, 2024Hindi
Ans: Planning for retirement involves strategizing investments to generate a stable income. Let's explore your current situation and steps to achieve your goals.

Current Financial Situation
Age: 42 years

Child: 12-year-old girl

Monthly Income: Rs 1.5 lakhs from startup business

Fixed Deposits (FD):

Rs 1 crore with Rs 50,000 monthly income for home expenses
Rs 20 lakhs in Postal MIS with Rs 10,000 monthly income and Rs 1.2 lakhs for managing school fees
Sukanya Samriddhi Account: Rs 20,000 per year

No Loans

Home Purchase: Planning to buy a home
Retirement: Plan to retire by 2031
Steps to Plan Retirement Income
1. Evaluate Monthly Expenses
List all monthly expenses, including home, utilities, education, and lifestyle.

Estimate post-retirement expenses. Include inflation in calculations.

2. Assess Current Investments
Your FDs provide a stable income but have limited growth potential.

Sukanya Samriddhi offers good returns but is for your daughter’s future.

Consider more growth-oriented investments for retirement.

3. Diversify Investments
Equity Mutual Funds: Invest in equity mutual funds for long-term growth. They provide better returns than fixed deposits.

Debt Funds: Include debt funds for stability. They balance the portfolio and reduce risk.

Balanced Funds: Invest in balanced funds that mix equity and debt. They offer growth with moderate risk.

4. Increase Contributions
Increase contributions to equity mutual funds. Start SIPs to benefit from compounding.

Invest part of the FD maturity amount in diversified mutual funds. This enhances growth potential.

5. Professional Management
Actively Managed Funds: Choose actively managed funds. Fund managers aim to outperform the market.

Regular Funds: Invest through a Certified Financial Planner (CFP). They offer valuable advice and manage your investments.

6. Avoid Index Funds
Disadvantages: Index funds lack professional management. They simply mimic the market.

Lower Returns: Actively managed funds often outperform index funds. Managers can adjust for market conditions.

7. Plan for Home Purchase
Budgeting: Create a budget for the home purchase. Ensure it does not strain your finances.

Loan Options: Consider home loan options if necessary. However, aim to minimize debt.

8. Emergency Fund
Maintain an emergency fund. Cover at least 6 months of expenses. Keep it in liquid funds for easy access.
9. Regular Review
Monitor Investments: Regularly review and rebalance your portfolio.

Adjust Goals: Reassess goals and strategy based on life changes. Be flexible.

10. Estimate Retirement Corpus
Required Corpus: Estimate the corpus needed for retirement. Consider lifestyle, inflation, and life expectancy.

Investment Strategy: Aim for a mix of equity and debt investments. Equity for growth, debt for stability.

Final Insights
Your current financial position is strong. You have steady income from FDs and your business. To ensure a comfortable retirement, diversify your investments into equity and debt mutual funds. Avoid index funds and direct funds. Regularly review and adjust your strategy.

Consult a Certified Financial Planner for personalized advice. They can help create a tailored plan to meet your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Meri policy jeewan asha -2hai.ishe mene28-09-2003 me liya tha. Haff yearly premium 11992rs hai. Policy plan 131-25 hai. Mujhe 25 year tak premium dena hai. Mujhe policy mature hone par kitna amount milega.
Ans: Policy Details Overview
Policy Name: Jeevan Asha - 2
Start Date: 28-09-2003
Half-Yearly Premium: Rs 11,992
Policy Term: 25 years
Plan Number: 131-25
You are paying Rs 11,992 as a half-yearly premium, which amounts to Rs 23,984 annually. This policy has a term of 25 years.

Total Premium Paid
Total Premiums Paid Over 25 Years:
Annual Premium: Rs 23,984
Total Years: 25
Total Premium Paid: Rs 23,984 * 25 = Rs 5,99,600
Maturity Amount Estimation
The maturity amount for a Jeevan Asha - 2 policy can depend on various factors, including the sum assured, bonuses, and final additional bonuses (FAB). Since the specific sum assured and bonuses are not provided, we will give a general idea.

Sum Assured:

The sum assured is the guaranteed amount paid on maturity. Check your policy document for the exact sum assured amount.

LIC policies often include reversionary bonuses declared annually. The bonus rate varies yearly. Historically, it has been around Rs 40 to Rs 50 per Rs 1,000 of the sum assured.
Final Additional Bonus (FAB):

An additional bonus may be declared at the end of the policy term. This depends on LIC's performance and policy duration.
Example Calculation
For an illustrative example, let's assume:

Sum Assured: Rs 3,00,000 (You need to check your policy for the exact sum assured)
Annual Bonus: Rs 45 per Rs 1,000 sum assured
FAB: Rs 25 per Rs 1,000 sum assured (if applicable)
Annual Bonus Calculation:

Sum Assured: Rs 3,00,000
Annual Bonus: Rs 45 per Rs 1,000 = Rs 13,500 per year
Total Bonuses Over 25 Years: Rs 13,500 * 25 = Rs 3,37,500
Final Additional Bonus (FAB):

Sum Assured: Rs 3,00,000
FAB: Rs 25 per Rs 1,000 = Rs 7,500
Total Maturity Amount:

Sum Assured: Rs 3,00,000

Total Bonuses: Rs 3,37,500

FAB: Rs 7,500

Total Maturity Amount: Rs 3,00,000 + Rs 3,37,500 + Rs 7,500 = Rs 6,45,000

Final Insights
The exact maturity amount can vary based on the sum assured and actual bonuses declared by LIC. It is advisable to consult your policy document or contact LIC for precise details.

By estimating the bonuses and sum assured, you can get an idea of the maturity amount.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Hello, I am a businessman and now im 38 years. My monthly income is around 100000/- approx but not fixed for every months since im from events industry. This year I have taken home loan of 42 lakhs for 30 years ( 2024 ) and current emi is 33000/- and additionally I have to appeox 1.5 Lakhs in every 4 months till 2025 end. And car loan emi is 18000/- and duration left approx june 2028 and misc loan of 15000/- left for 2 years. My goal is to get 2 cores at the age of 55 and loan free life. Can you please suggest me how to achive my goal. Thank you.
Ans: Let’s explore a strategy to achieve your goal of accumulating Rs 2 crore by age 55 while also ensuring a loan-free life.

Current Financial Overview
Age: 38 years

Monthly Income: Approx Rs 1 lakh (variable income)

Home Loan:

Amount: Rs 42 lakh
EMI: Rs 33,000
Duration: 30 years
Car Loan:

EMI: Rs 18,000
Duration left: Until June 2028
Miscellaneous Loan:

EMI: Rs 15,000
Duration left: 2 years
Additional Payment: Rs 1.5 lakh every 4 months until end of 2025

Financial Goals
Target Amount: Rs 2 crore by age 55 (in 17 years)

Objective: Achieve a loan-free life.

Managing Current Loans
1. Review Loan Terms:

Analyze your current loans for interest rates and terms.

Look for opportunities to refinance at lower rates if possible.

2. Prioritize Loan Payments:

Focus on repaying the miscellaneous loan first since it has a shorter duration.

This frees up cash flow sooner.

3. Evaluate Home and Car Loans:

Continue regular payments for the home loan and car loan.

Consider making extra payments if possible to reduce the principal.

Monthly Budget Management
1. Track Income and Expenses:

Keep a detailed record of your monthly income and expenses.

Identify areas to cut costs to increase savings.

2. Emergency Fund:

Build an emergency fund equal to 6 months of expenses.

This protects you against income fluctuations.

Savings and Investment Strategy
1. Monthly Investment:

Aim to save a portion of your monthly income after paying loans.

Consider setting aside at least 20-30% of your income for investments.

2. Diversified Investment Portfolio:

Invest in a mix of asset classes for growth.

Consider actively managed mutual funds, equities, and fixed deposits.

Choose funds based on risk tolerance and investment horizon.

3. Systematic Investment Plans (SIPs):

Set up SIPs in mutual funds for disciplined investing.

Focus on funds with strong past performance.

Achieving Rs 2 Crore Target
1. Calculate Future Value:

You need to estimate how much you need to save each month to reach Rs 2 crore.

Use a conservative return rate for calculations.

2. Focus on Equity Investments:

Aim for a higher percentage of equity investments for potential growth.

Historically, equity investments offer better returns over the long term.

Increasing Income
1. Diversify Income Streams:

Explore additional business opportunities in the events industry.

Consider side ventures or passive income options.

2. Enhance Current Business:

Improve your marketing strategies to attract more clients.

Focus on quality service to increase customer retention.

Planning for a Loan-Free Life
1. Set Loan Payoff Goals:

Create a timeline for repaying each loan.

Consider using bonuses or unexpected income for extra payments.

2. Avoid New Debt:

Stay clear of taking on additional loans unless necessary.
Final Insights
To achieve Rs 2 crore by age 55 and live loan-free, manage your current loans effectively, prioritize savings, and invest wisely. Focus on a diversified investment portfolio and explore ways to increase your income. Consistent monitoring and adjustment of your strategy will be key to success.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


...Read more


Ramalingam Kalirajan  |5279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 17, 2024Hindi
Iam a software engg. Iam 29 year old. My yearly package is 27 lac. I have invested about 40 lac in my 2bhk flat and it's furnishing my home loan emi is 76735 pm for next 33 months. I have 5 lacs in ppf, 3 lacs in epf, 2 lacs in nps and 7 lacs in gold. Please guide me to make 2 lacs. As pension when I retire at 45 age
Ans: Current Financial Position

You are a 29-year-old software engineer with an annual salary of Rs. 27 lakhs. Here is a summary of your current investments and liabilities:

Home: 2BHK flat with furnishings worth Rs. 40 lakhs
Home Loan EMI: Rs. 76,735 per month for the next 33 months
PPF: Rs. 5 lakhs
EPF: Rs. 3 lakhs
NPS: Rs. 2 lakhs
Gold: Rs. 7 lakhs
You aim to have a pension of Rs. 2 lakhs per month by age 45. Let's develop a plan to achieve this.

Assessing Current Investments

Your current investments provide a strong foundation. The home loan will be paid off in about 3 years, freeing up significant monthly cash flow. This allows you to redirect funds to other investments.

Increasing Monthly Savings

After your home loan is paid off, you will have an additional Rs. 76,735 per month. Redirect these savings towards mutual funds, NPS, and other investment options.

Mutual Funds for Growth

Investing in actively managed mutual funds can provide higher returns. They offer diversification and professional management. Avoid direct funds as they lack advisory support. Use regular funds through a Certified Financial Planner (CFP).

National Pension System (NPS)

Increase your contributions to the NPS. NPS provides tax benefits and a regular pension post-retirement. Aim to maximise your contributions annually.

Public Provident Fund (PPF)

Continue investing in PPF for tax-free returns. It is a secure and long-term investment option. It will provide a lump sum at maturity.

Gold as a Safe Haven

Gold is a good hedge against inflation. Continue holding it as part of your portfolio. Consider adding more periodically.

Diversifying Investments

Diversify your investments across different asset classes. This reduces risk and provides balanced growth. Here’s a suggested allocation:

Equity Mutual Funds: For high growth potential.
Debt Mutual Funds: For stability and regular income.
PPF and EPF: For long-term and tax-free returns.
NPS: For a regular pension.
Gold: For safety and inflation hedge.
Calculating Future Needs

You need Rs. 2 lakhs per month by age 45. This amounts to Rs. 24 lakhs annually. Adjusting for inflation, this figure will be higher. Plan to build a corpus that can generate this amount.

Based on current trends, you may need a corpus of Rs. 5-6 crores. This assumes a conservative return rate post-retirement.

Investment Strategy

To achieve this corpus, focus on the following steps:

Maximise Savings: Increase your savings rate as your income grows.
Regular Investments: Invest systematically in mutual funds and NPS.
Review Portfolio: Regularly review and rebalance your portfolio with a CFP.
Insurance and Risk Management

Ensure you have adequate life and health insurance. This protects your investments and provides security for your family.

Consult a Certified Financial Planner

A CFP can provide personalised advice. They help optimise your investment strategy and ensure you meet your retirement goals.

Final Insights

You have a solid financial base with diversified investments. Focus on increasing savings, especially after your home loan is paid off. Invest in mutual funds, NPS, and other secure options. Regularly review your portfolio with a CFP.

By following this plan, you can achieve a comfortable pension of Rs. 2 lakhs per month by age 45.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,


...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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