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Ankit

Ankit Mehra  |5 Answers  |Ask -

Study Abroad Finance Expert - Answered on Jan 19, 2023

Ankit Mehra founded GyanDhan, a study abroad financing marketplace to help Indian students find end-to-end education loan and financial assistance, in 2015.Mehra holds a BTech degree in mechanical engineering from IIT-Kanpur and an MBA from the IESE Business School, Barcelona.... more
Anonymous Question by Anonymous on Jan 19, 2023Hindi
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Hi Mr Ankit I am an undergrad from Delhi and would like to pursue a master's course in management from Ireland. My father is a government servant but I would like to avail of an education loan. My course fee would be approx 8 lakh (INR) per semester. Will I get a 100 percent loan? What will be interest and terms of repayment? Apart from loans what costs should I consider while applying?

Ans: Your total cost of education includes living costs and is not just limited to course fees. You should consider other expenses as well including spends on accommodation, food, insurance, travel, and entertainment. Lenders typically finance a % of the overall cost of education. Most of the lenders can finance up to 80% of the amount, but in some cases this can go all the way up to 100%

The interest rates on lans against security (where you will pledge a property as a collateral) is typically 10% at this point in time, whereas the rate on unsecured loans hovers in the 11%-12% range in most cases. The exact interest rates are determined based on the applicant's profile. Secured loans have complete moratorium i.e. you are not required to make any payments during the period of study. Unsecured loans have requirements of partial or complete interest servicing during the period of study.
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Ramalingam

Ramalingam Kalirajan  |8608 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 24, 2024

Asked by Anonymous - Jun 24, 2024Hindi
Money
I am 32 year old single female.I have around 11 lakhs invested in ppf, mutual funds. I want to do my masters in business administration and it may cost around 30-40 lakhs if I study abroad.I have to apply for education loan for future studies.How can I be able to manage it and should I keep my mother's house as a collateral while applying for the loan the worth of the house is around 50 lakhs.Also will I get ROI from studying abroad so I can pay the EMIs without any hassle or I should do my master's in india as it will be more affordable than studying abroad.
Ans: You are a 32-year-old single woman with Rs. 11 lakh invested in PPF and mutual funds. Your goal is to pursue a master's in business administration, which may cost Rs. 30-40 lakh if you study abroad. You plan to apply for an education loan and are considering using your mother's house, worth Rs. 50 lakh, as collateral. Additionally, you are weighing the ROI of studying abroad versus studying in India. Let's break down your situation and explore the best options for you.

Evaluating the Cost of Education

The cost of pursuing a master's degree abroad can be high. Let's consider two scenarios: studying abroad and studying in India.

Studying Abroad

Studying abroad offers exposure to international standards, networking opportunities, and possibly better job prospects. However, it comes with higher tuition fees and living expenses. The total cost might range between Rs. 30-40 lakh.

Studying in India

Pursuing a master's degree in India is more affordable. The cost could be significantly lower, between Rs. 10-20 lakh. Indian institutions also provide quality education and good job opportunities.

Financial Planning for Education

With Rs. 11 lakh already invested, you have a good start. However, you need to arrange the remaining funds for your education. Here are some steps to consider:

Education Loan

Education loans can cover tuition fees, living expenses, and other related costs. Loans are generally repaid after you complete your course and start earning. Let’s discuss some important aspects:

Loan Amount: The loan should cover the full cost of education.

Collateral: You can use your mother's house as collateral. However, this decision should be made carefully.

Interest Rate: Compare interest rates from different banks to get the best deal.

Repayment Terms: Understand the repayment schedule, including EMIs and tenure.

Moratorium Period: Most education loans have a moratorium period during which you don’t need to pay EMIs. This period typically covers your study duration plus a few months post-completion.

Collateral Considerations

Using your mother's house as collateral is a serious decision. Here are some points to consider:

Risk: If you default on the loan, you risk losing the house. Make sure you are confident in your ability to repay.

Interest Rates: Loans with collateral generally have lower interest rates.

Alternative Options: Explore unsecured loans, scholarships, and grants as alternatives.

Return on Investment (ROI) of Studying Abroad

The ROI of studying abroad depends on several factors, including the reputation of the institution, the country, and the job market. Consider these points:

Earning Potential: Graduates from reputed international institutions often have higher earning potential. Research average salaries for graduates from your target schools.

Job Market: Assess the job market in the country where you plan to study. Are there good job opportunities for graduates?

Networking: Studying abroad can provide a strong professional network, which can help in career growth.

Personal Growth: Exposure to different cultures and learning environments can enhance your personal and professional skills.

ROI of Studying in India

Studying in India is more affordable, reducing the financial burden. Here are some points to consider:

Cost: Lower tuition fees and living expenses mean less debt.

Job Market: Indian institutions have strong placement records, with good starting salaries for graduates.

Local Opportunities: Staying in India allows you to build a network within the local industry, which can be beneficial for your career.

Managing Education Loan Repayments

Repaying an education loan requires careful financial planning. Here’s how you can manage it:

Post-Study Income

Estimate your expected salary after completing your degree. This will help you determine if you can comfortably manage EMI payments.

Budgeting

Create a budget to manage your monthly expenses, including EMIs. Prioritize loan repayment to avoid defaulting.

Savings

Continue to save and invest even after starting your job. This builds a financial cushion for emergencies and future goals.

Income Growth

Consider ways to increase your income, such as freelance work, part-time jobs, or further certifications. Higher income will make it easier to manage loan repayments.

Tax Benefits

Education loans offer tax benefits under Section 80E of the Income Tax Act. The interest paid on the loan can be deducted from your taxable income, reducing your tax liability.

Exploring Scholarships and Grants

Scholarships and grants can significantly reduce the cost of education. Research available options and apply early. Here are some types of scholarships to consider:

Merit-Based Scholarships: Awarded based on academic performance.

Need-Based Scholarships: Given to students with financial need.

Institutional Scholarships: Offered by universities and colleges.

Government Scholarships: Provided by government bodies for higher education.

Alternatives to Collateral-Based Loans

If you’re hesitant to use your mother's house as collateral, explore unsecured loans. These loans don’t require collateral but might have higher interest rates. Compare options from different banks and financial institutions.

Investing Wisely for Education

Continue to invest your savings wisely. Here are some investment strategies to consider:

Diversification

Diversify your investments across different asset classes to reduce risk. This includes equities, mutual funds, and fixed-income instruments.

Regular Contributions

Keep contributing to your investments regularly. This builds a substantial corpus over time.

Professional Advice

Seek advice from a Certified Financial Planner (CFP) to optimize your investment strategy and align it with your education goals.

Risk Management

Understand the risks associated with your investments. Choose a mix of high-risk and low-risk investments based on your risk tolerance and financial goals.

Importance of Financial Planning

Financial planning is crucial for managing your education expenses and achieving long-term financial goals. Here are the steps to create a robust financial plan:

Goal Setting

Clearly define your financial goals, including your education, career, and personal objectives.

Budgeting

Create a budget to manage your income and expenses. Include a plan for loan repayments and savings.

Investment Strategy

Develop an investment strategy that aligns with your risk tolerance and financial goals. Diversify your investments to balance risk and return.

Regular Review

Regularly review and adjust your financial plan to stay on track with your goals. Monitor your investments and make necessary changes.

Professional Guidance

Consult a Certified Financial Planner (CFP) for expert advice. They can help you create a comprehensive financial plan and guide you through complex financial decisions.

Final Insights

You have a strong foundation with Rs. 11 lakh invested and a clear goal for further education. Whether you choose to study abroad or in India, careful financial planning is essential. Consider the ROI of both options and make an informed decision. Applying for an education loan is a viable option, but be cautious with using your mother’s house as collateral. Explore scholarships, grants, and unsecured loans as alternatives. With proper planning and professional guidance, you can achieve your education goals and manage loan repayments effectively. Best of luck with your future studies and career!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |5507 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
I'm getting CSE Core at JSS University , CSE with Cyber Security at JIIT , CSE core in VIT Bhopal in category 2, and CSE Core in ABESIT. Which one should i choose?
Ans: VIT Bhopal’s Computer Science and Engineering (CSE) program offers a centralized placement system shared with VIT Vellore, attracting top recruiters like Microsoft, Amazon, TCS, and Infosys. While placements vary, 70–90% of CSE students secure roles, with internships at firms like Google, Adobe, and JP Morgan integrated into the curriculum. The campus features modern infrastructure, including advanced labs (IoT, AI/ML, Gaming Studio), Wi-Fi-enabled hostels, and a 600-seat auditorium, though sports facilities remain under development. Faculty members hold doctorate qualifications and emphasize industry-aligned learning, though some students report inconsistent academic support. The remote location (Bhopal-Indore highway) limits urban amenities but provides a serene, security-focused environment. Campus life includes tech clubs, hackathons, and festivals, though social activities are less vibrant compared to older VIT campuses. While CSE specializations (AI/ML, Cybersecurity) are well-structured, competition for core roles is intense, requiring students to maintain strong academic performance. Prospective students should weigh the centralized placement opportunities against the evolving campus infrastructure and location constraints. Prioritize JSS Mysore for balanced academics and placements, followed by JIIT Noida for specialization options. VIT Bhopal is ideal for brand-driven opportunities, while ABESIT serves as a pragmatic backup. All the BEST for your Admission & Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |8608 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Money
sir, am 26 year old and have some SIPs for Rs 1000 each. 1. QUANT SMALL CAP FUND DIRECT 2. NIPPON INDIA LARGE CAP DIRECT 3. MIRAE ASSEST ELSS TAX SAVER 4. UTI NIFTY 50 5. PARAG PARIKH FLEXI CAP 6. TATA MIDCAP GROWTH DIRECT 7. TATA SMALL CAP DIRECT my question is, these are good SIPs for next 10-15 years ? second is i want to invest 10000 more per month, please let me know which SIPs will be good for next 15 years. Thanks
Ans: At age 26, it is appreciable that you have started investing early.

It shows responsibility towards your future financial goals.

Your current SIPs are diversified across multiple categories.

But some of these SIPs may not be aligned well for long-term consistency.

Let us now review each one professionally.

1. Quant Small Cap Fund - Direct

Small caps can be volatile.

This fund is aggressive and high-risk.

Direct plans have no guidance or monitoring.

This may affect long-term performance.

Switching to a regular plan with a Certified Financial Planner is better.

This will ensure proper guidance and rebalancing.

2. Nippon India Large Cap - Direct

Large caps offer stability in a portfolio.

However, this fund’s long-term consistency is not very strong.

Also, direct plans lack expert monitoring.

A regular plan through a CFP ensures better handholding.

Tracking and performance review becomes easier.

3. Mirae Asset ELSS Tax Saver

This fund is decent for tax saving.

It is diversified and has shown fair returns.

However, regular review is still needed.

A regular plan helps with documentation and timely alerts.

Switching to regular mode can be beneficial in the long run.

4. UTI Nifty 50 - Direct

This is an index fund.

Index funds only mirror the market.

They do not aim to beat the market.

They lack human intelligence and flexibility.

They don’t perform well during corrections or sideways markets.

Actively managed funds have higher potential.

They can outperform in changing market situations.

Consider replacing this with a well-managed large cap fund.

In regular plan through CFP, you get guided fund selection.

5. Parag Parikh Flexi Cap

Flexi cap funds provide flexibility across market segments.

This fund has been popular recently.

But it has higher exposure to international stocks.

This brings currency risk and regulatory risks.

Also, it may overlap with other holdings.

You should regularly monitor for overlap and concentration.

Again, direct mode has no professional review.

6. Tata Midcap Growth - Direct

Midcaps are good for long-term.

But they need close tracking due to higher volatility.

A regular plan with expert guidance is ideal.

Direct mode will not help during market correction periods.

Switching to regular mode will ensure ongoing support.

7. Tata Small Cap - Direct

Small caps are risky in short to medium term.

This should not be your core holding.

Should be allocated only with close guidance.

Again, direct plans can go off-track without support.

If unmanaged, can bring portfolio imbalance.

Assessment of Direct Funds: Key Concerns

Direct funds may look cheaper in expense.

But they lack professional support and review.

There is no monitoring of changes in fund quality.

You may miss timely exits and rebalancing.

A Certified Financial Planner guides with logic and analysis.

They also help align your funds with your goals.

Regular plans have MFD support and rebalancing discipline.

They protect from behavioural mistakes during market volatility.

Overall, regular funds with expert guidance bring higher net value.

What Can Be Done with Your Existing SIPs?

You can consider the following changes:

Discontinue index fund (UTI Nifty 50) SIP.

   

Reduce exposure to direct small and midcap funds.

   

Switch from direct plans to regular plans via a Certified Financial Planner.

   

Ensure SIPs are part of a professionally constructed portfolio.

   

Ensure proper asset allocation, fund category balancing and tax efficiency.

   

New SIP of Rs 10,000 per Month – Suggestions

For your new Rs 10,000 monthly SIP, here is a 360-degree plan:

Allocate across diversified categories.

   

Ensure each fund has low overlap and different market focus.

   

Invest in 3 to 4 funds max.

   

All in regular mode with CFP-led support.

   

Avoid index funds, as they only match market returns.

   

Go for actively managed funds with proven history.

   

Include large-cap, mid-cap and flexi-cap mix.

   

Monitor quarterly with your Certified Financial Planner.

   

Additional Guidance for 15-Year Wealth Building

At 26, your time horizon is excellent.

But long-term wealth creation needs more than just SIPs.

It needs strategy and discipline.

Below are key steps for a full-circle approach:

Set clear financial goals: Home, car, retirement, child education etc.

   

Link SIPs to each goal separately.

   

Keep emergency fund in place (6 months expenses).

   

Get sufficient life and health insurance (pure protection plans).

   

Avoid investment-cum-insurance products.

   

They give low returns and poor insurance.

   

Do not mix insurance with investment.

   

Track your SIP performance annually.

   

Rebalance if some funds underperform.

   

Maintain asset allocation: Equity, Debt and Liquid.

   

Avoid emotional reactions during market dips.

   

Stay invested with guidance from your CFP.

   

Be aware of taxation rules on equity and debt funds.

   

LTCG on equity above Rs 1.25 lakh is taxed at 12.5%.

   

STCG on equity is taxed at 20%.

   

Debt fund gains are taxed as per income slab.

   

Regular plan MFD and CFP helps with all tax planning.

   

What Not to Do in the Next 15 Years

Don’t invest in index funds.

   

They lack active strategy.

   

Don’t choose funds by past returns only.

   

Don’t use direct funds without financial expertise.

   

Don’t invest in real estate for returns.

   

Don’t invest in annuity products for retirement.

   

Don’t mix investment and insurance.

   

Don’t make decisions based on short-term news or noise.

   

Don’t stop SIPs during market corrections.

   

Role of a Certified Financial Planner

A Certified Financial Planner helps you:

Set goals based on life stages.

   

Create custom SIP and lump sum plans.

   

Select the best active funds for your goals.

   

Rebalance annually to stay on track.

   

Plan taxes as per latest rules.

   

Protect wealth with right insurances.

   

Build retirement with strategic planning.

   

Create a total financial blueprint for life.

   

Keep emotions out of financial decisions.

   

Final Insights

You have taken a great step by starting early.

But choosing the right funds is key.

More important is monitoring them regularly.

Direct plans lack this important support.

Switching to regular plans under CFP brings value.

Also, add Rs 10,000 new SIP with proper strategy.

Don’t follow trends.

Stay committed and review annually.

Avoid overlapping funds and unnecessary risks.

Have a complete financial roadmap in place.

You are building your future.

Make each rupee work with expert guidance.

This 360-degree approach will lead to better outcomes.

You will be financially secure and confident.

Take the next steps with clarity and care.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8608 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Asked by Anonymous - May 30, 2025
Money
Dear Sir I had ancestral property at native place which fetch 14K Rent monthly...Property is 40Years old.. Will it be good If I sell that property for 70Lakh and keep that money in Balanced fund or in NPS account
Ans: You are thinking wisely about your assets.

Let’s look at this from a 360-degree perspective.

Rental Income vs Sale Value

The property gives you Rs. 14,000 monthly rent.

That is Rs. 1.68 lakhs per year.

Over 10 years, you may earn Rs. 16 to 18 lakhs from rent.

Maintenance cost, property tax, and repairs will reduce this further.

Also, a 40-year-old property needs more upkeep.

Its resale value may not grow much more from here.

Selling now for Rs. 70 lakhs gives you full value in hand.

You can use that money in better investment options.

Emotional Value vs Financial Value

Being ancestral property, emotions may be attached.

But emotional value won’t solve financial needs.

If the property is not well located or not appreciating well, selling is practical.

You can honour the legacy in other ways.

Should You Invest in NPS?

NPS is a retirement tool with lock-in till age 60.

You can’t withdraw freely.

It is good for building a pension corpus.

But not suitable if you want liquidity or flexibility.

Once you invest, you cannot move the funds easily.

Also, returns are not consistent. Depends on market and fund manager.

Use NPS only for a part of your funds if your retirement goal is clear.

Should You Put in Balanced Funds?

Balanced funds (also called hybrid funds) invest in both equity and debt.

They are good for moderate risk and stable returns.

Suitable for long-term goals like retirement, child's education, or financial freedom.

They give better return than traditional options.

But don’t invest in direct plans.

Direct funds don’t guide during volatility.

Regular plans through MFD with CFP support are better.

You get timely advice and fund switching support.

Active fund managers make strategy changes.

Index funds or passive options don’t do that.

Actively managed balanced funds are better for Indian investors.

What You Should Do Now

Sell the property if there’s no growth and rising maintenance.

Use part of the Rs. 70 lakhs to reduce any high-interest debt.

Keep 6 to 12 months of expenses as emergency fund in liquid mutual fund.

Invest the rest through SIP and STP in regular hybrid funds.

Plan your financial goals with a Certified Financial Planner.

For retirement, use mutual funds along with PPF and EPF.

Use NPS for small part only, due to lack of liquidity.

Tax Impact You Should Know

On sale, capital gains tax will apply.

Since it's ancestral property, indexed cost and holding period matter.

Tax can be planned using capital gain bonds or reinvestment.

Don’t keep all money in savings account. Plan it step-by-step.

A Suggested Allocation Strategy (Not Specific Schemes)

Rs. 10 to 15 lakhs – emergency and contingency in liquid or short-term fund.

Rs. 40 to 45 lakhs – invest gradually in hybrid and multicap mutual funds.

Rs. 10 lakhs – use for NPS only if you have no urgent needs till age 60.

Avoid direct funds, index funds, or annuity options.

Use regular funds via MFD under CFP guidance.

Final Insights

Selling old property and investing is a progressive step.

You are unlocking stuck value into a growing asset.

Old assets slow down your money’s growth.

Balanced mutual funds help you grow with moderate risk.

NPS gives tax benefit but lacks flexibility.

Don’t invest entire money in NPS. Use mix of better tools.

Avoid emotional attachment if the property is non-performing.

Turn this decision into a lifetime opportunity.

Your wealth deserves active planning, not passive holding.

Take support from a Certified Financial Planner to execute wisely.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Dr Upneet

Dr Upneet Kaur  |40 Answers  |Ask -

Marriage counsellor - Answered on May 30, 2025

Nayagam P

Nayagam P P  |5507 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
I have 142 marks in MET and 76% in boards. Is it possible for me to get in CSE ( or any specialization like AI/ML or financial technology ) at the main campus? If not should I go for Bengluru campus?
Ans: Sneh, With 142 MET marks (expected rank ~2,001–4,500) and 76% in boards, admission to CSE, AI/ML, or Financial Technology at MIT Manipal (main campus) is unlikely, as the 2024 closing ranks for these branches were CSE: 1,633, AI/ML: 2,255, and Financial Tech: 3,189. However, MIT Bengaluru offers viable alternatives, with 2024 cutoffs of CSE: 5,687, AI/ML: 7,244, and Financial Tech: 9,116, all within your rank range. While the main campus remains competitive, Bengaluru provides comparable academic rigor and industry exposure, albeit with marginally lower placement averages. During MET counselling, prioritize CSE at Bengaluru or specialized branches like AI/ML/Financial Tech as achievable options. If preferring Manipal, explore non-CSE branches (e.g., IT, Electronics) with lower cutoffs (~4,500–5,148) or monitor spot rounds for potential vacancies. Your board percentage meets the eligibility criteria (50% PCM), so strategically rank preferences during counselling to optimize admission prospects. Bengaluru serves as a strong backup with aligned opportunities, ensuring a balance between campus reputation and program accessibility.

All the BEST for your Admission & Prosperous Future!

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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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