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Harsh

Harsh Bharwani  |63 Answers  |Ask -

Entrepreneurship Expert - Answered on Aug 16, 2023

Harsh Bharwani is a fourth generation entrepreneur.
As CEO and managing director, he leads the international business and employability initiatives at the computer networking institute, Jetking Infotrain Limited.
After graduating from Delhi University, Bharwani joined the family business in 2010 and set up operations in the US and Vietnam.
He has trained over three lakh students in employability, confidence and key life skills.... more
Colville Question by Colville on Jun 28, 2023Hindi
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Career

Dear Mr.Harsh, Hi,I'm a start-up entreprneur in the Oil/Gas sector, specialised in Training young aspirants to join the oil/gas industry to be employed in it.I aspire to start a program training new Engrs & like wise Sc.graduates (PCM) to work in the industry as process/operator/technicians .

Ans: Working in the oil and gas industry means you have to be on the oil rig. The oil and gas industry is a vast and wide industry. And there are lots of hard-working and white-collar jobs within the industry. More than 60% workforce working hard labour or skilled work. It can be from the plumber, driller, technicians mudlogger …etc. And also jobs related to finding new oil deposits, marketing…etc part of O&G industry.
The oil and gas industry offers high scale pay, Quick career growth and periodic payable leaves. Those are the major reasons for the candidates to attract to the oil and gas industry.
The entry-level jobs may not be rewarding in the oil and gas industry. But as you become an experienced professional, you can achieve a very rewarding career.

Start at Entry Level-
It is always good to start at the bottom level and work your way up. Research thorough before selecting your sector in the oil and gas industry. Each sector has its own pros and cons. No matter what your educational background or previous work history, this industry will welcome people with the necessary skills and a willingness to learn.
Most of the entry-level or job recruiting is done by 3rd party teams and contractors or sub-contractors.
Lots of entry-level job does not need any educational qualification or prior work experience. You can start as completely fresher in the oil and gas industry.

Get an Oil and Gas Job-oriented Training-
Oil and gas job-oriented training programs from reputed institutions helps you a lot to get into the oil and gas industry. You will ger basic-level training and in-depth idea for the how the oil and gas industry work. You also get an idea about, what are the duties and responsibilities of major job roles within the industry. You can start getting into the work immediately after joining the job if you had attended the training programs. You can use certificates offered by the training institution as a recruiting tool. Certified professionals will always have an upper hand in the industry.
Some training institutes also provide job offers after the training programs. Adi institute is one of the top institutes in south India for Oil and gas job training.

Get an apprenticeship-
Top-notch companies offer apprenticeship training for candidates. And filter good candidates for them. It always will be useful for building a career in the oil and gas industry. Either you will get a full-time job or get a good experience and opportunity to build a good network.

Don’t say ‘No’ to Internships-
Internships programs are always a good entry from the educational level to the O&G industry. If you are a beginner and trying to build a career in the industry, then never lose an opportunity to get into it.

Little Experience takes you a long way-
Even a little experience can give a boost to your career. Use your first experience to build networks and contact as well as work experience. always bear in mind that top-notch companies have constant job openings.
There are many job opportunities available for individuals with a Bachelor of Science degree in Physics, Chemistry and Mathematics (PCM). Some popular options include roles in research and development, data analysis, engineering, and education. Additionally, many industries, such as finance, healthcare, and technology, value analytical and problem-solving skills, which are developed through a PCM degree. It is recommended to research potential job opportunities and industries that align with your interests and skills.
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Ramalingam

Ramalingam Kalirajan  |7279 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 18, 2024

Asked by Anonymous - Dec 17, 2024Hindi
Money
Question on Financial Planning: I am 53 years old and took retirement in 2023, a year ago. I have a corpus of approximately ?20 crores allocated as follows: ?6.5 crores in stocks ?5 crores in mutual funds ?5 crores in debt instruments ?2 crores in gold ?1.8 crores in a savings bank account** (to cover the next 12 years of household expenses). My monthly expenses are approximately ?1 lakh, and I receive: ?70,000 per month as house rent (?8.4 lakhs annually) ?10 lakhs annually as dividends from stocks. I have allocated ?5 crores in debt instruments to fund the higher education of my two sons (expenses will arise after 1 year and after 4 years). My goal is to grow my equity portfolio over the next 12 years since I do not depend on it for my current monthly expenses. Additionally: I have adequate health insurance. I own properties worth ?7.5 crores. I have no liabilities. My query: Is my financial planning on track, or do you see any areas for improvement or correction? I am open to suggestions for optimizing my investments, especially considering my goals of equity growth, funding my sons' education, and maintaining a comfortable retirement.
Ans: Your financial planning reflects strong foresight and effective resource allocation. With a corpus of Rs. 20 crores and no liabilities, your position is financially stable. Let us evaluate your financial setup from a 360-degree perspective and suggest areas for optimisation.

Assessment of Current Allocations
Equity Portfolio: Stocks (Rs. 6.5 Crores)
Your equity allocation reflects a growth-oriented approach.
A diversified stock portfolio is ideal for long-term growth.
Ensure the portfolio is well-balanced across sectors and market capitalisations.
Mutual Funds (Rs. 5 Crores)
Mutual funds provide diversification and professional management.
Review the fund categories to maintain a mix of large-cap, mid-cap, and flexi-cap funds.
Regular performance reviews are essential to optimise returns.
Debt Instruments (Rs. 5 Crores)
Allocating Rs. 5 crores for your sons’ education is prudent.
Ensure the debt investments are in low-risk instruments like bonds or fixed deposits.
Laddering maturity dates aligns well with your sons’ educational timelines.
Gold (Rs. 2 Crores)
Gold provides stability during market volatility.
Keep it as a hedge against inflation but avoid further allocation to this asset.
Savings Account (Rs. 1.8 Crores)
Holding Rs. 1.8 crores for 12 years of expenses is a cautious approach.
Move a part of this amount into liquid funds for better returns with liquidity.
Income and Monthly Expenses
Rental Income (Rs. 8.4 Lakhs Annually)
Rental income covers 70% of your monthly expenses.
Ensure the rental property is well-maintained to sustain consistent returns.
Dividends (Rs. 10 Lakhs Annually)
Dividend income provides an additional safety net.
Reinvest surplus dividends into mutual funds for compounded growth.
Monthly Expenses (Rs. 1 Lakh)
Your monthly expenses are comfortably managed.
Maintain a contingency fund of at least Rs. 20-25 lakhs for unexpected costs.
Recommendations for Optimising Equity Portfolio
Focus on Quality Stocks

Prioritise stocks of companies with strong fundamentals and consistent earnings.
Avoid overexposure to any single sector or company.
Systematic Equity Investments

Add to your equity portfolio gradually through Systematic Transfer Plans (STPs).
This reduces market timing risks.
Regular Portfolio Review

Review the equity portfolio annually.
Exit underperforming stocks and reallocate to high-growth opportunities.
Enhancing Mutual Fund Returns
Diversify Fund Selection

Include funds with different strategies to maximise returns.
A Certified Financial Planner can help identify high-performing funds.
Avoid Direct Mutual Funds

Regular funds offer advisory support for timely rebalancing.
This helps navigate market volatility effectively.
Utilise Tax-Efficient Withdrawals

Plan withdrawals systematically to reduce tax liability on capital gains.
Debt Instruments: Securing Educational Goals
Low-Risk Instruments for Predictable Returns

Allocate funds to secure options like government bonds, fixed deposits, or debt mutual funds.
Match the maturity timelines with educational milestones.
Avoid Premature Withdrawals

Breaking long-term debt investments can reduce returns.
Use other funds for emergencies to protect this allocation.
Optimising Gold Allocation
Retain as a Hedge

Gold should form no more than 10% of your portfolio.
Avoid further investments unless there are specific requirements.
Leverage Gold for Liquidity

Gold-backed loans can provide temporary liquidity if needed.
Savings Account Allocation
Move Funds to Liquid Investments

Savings account returns are suboptimal for such a large balance.
Move funds into liquid funds for higher returns and liquidity.
Emergency Fund Segregation

Retain Rs. 50 lakhs for immediate emergencies.
Invest the rest in short-term debt instruments or liquid funds.
Maintaining a Comfortable Retirement
Healthcare Planning

Ensure health insurance policies are adequate for critical illnesses.
Maintain a separate corpus for medical emergencies.
Contingency Fund Maintenance

Keep Rs. 20-25 lakhs readily accessible for unforeseen expenses.
Review this fund periodically to adjust for inflation.
Estate Planning

Draft a will to avoid disputes and ensure smooth wealth transfer.
Assign nominees for all investments and properties.
Taxation Considerations
Equity Taxation

Long-term capital gains (LTCG) above Rs. 1.25 lakhs are taxed at 12.5%.
Short-term capital gains (STCG) are taxed at 20%.
Debt Taxation

Debt instruments are taxed as per your income tax slab.
Choose tax-efficient options like tax-free bonds if needed.
Dividend Income

Dividends are taxed at your marginal income tax rate.
Reinvest dividends for tax-efficient growth.
Final Insights
Your financial plan is well-structured and aligns with your goals. However, optimising your equity and mutual fund allocations can enhance growth potential. Move idle funds from your savings account into liquid investments for better returns. Review and rebalance your portfolio periodically with the help of a Certified Financial Planner. Your current strategy provides a secure foundation for funding education, retirement, and wealth growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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