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Chandu

Chandu Nair  |65 Answers  |Ask -

VC, Angel Investing, Entrepreneurship Expert - Answered on Nov 02, 2023

Chandu Nair advises entrepreneurs and enterprises about creating and building their business.
He has direct experience in angel, venture capital and strategic investor funding. Over the last three decades, he has made a name for himself in industry, consultancy, media and information services.
Nair is on the advisory boards of the Chennai-based private equity firm Fulcrum and the social impact fund, Menterra. He's an independent director on the board of India's first retail building products company, Shankara Building Products Limited.
He was the co-founder of Scope e-Knowledge Center, a pioneering knowledge process outsourcing company, as well as the co-founder of a business-to-business e-commerce venture, both of which he successfully exited.... more
azad Question by azad on Oct 11, 2023Hindi
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Career

for past 19 years i am working in a manufacturing company namely Tinplate company of india limited jamshedpur as mechanical engineer i want to do some buniness so that i have some monetory stability and extra income as you know today no one job is fixed forever pl suggest some small business for me so that after i loose my job i can sustain some income

Ans: Mr Azad, you would like to have a side business to generate additional income. You have provided no idea of your skills/expertise/ experience nor of your financial situation (I am guessing that you don't have any surplus to invest in a business).

First and foremost, pl check if your current employer permits moonlighting or having another job even if it is freelance/ gig work. Many companies can take stringent action in this regard.
Second, what skills/expertise/ experience do you have which is distinct from your current job at TCIL? E.g., are you a good writer, or can draw or teach well or translate from one language to another, or cook etc etc. That will help you identify possible alternate income generating possibilities,
Third, how much free time do you have per day? On the weekends? And at what time? That will narrow down the list of ideas.
Fourth, what kind of other infrastructure, manpower support etc is required for the idea? Do you have the ability to get /pay for it? If you don't, you can only do those activities which rely on your time and expertise. You need to be able to give focused attention to it on a sustained business be it tuitions, writing, cooking, generating online content or whatever else you finally choose.
Fifth, do you have access to a set of customers/ buyers who want what you can offer and are willing to pay for it and can you easily reach them?
Once you have gone through these steps, you would have likely identified an idea that can potentially give you an alternate source of income.
Best of luck
Career

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Ramalingam

Ramalingam Kalirajan  |7953 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 06, 2024

Asked by Anonymous - Jun 02, 2024Hindi
Money
I am a cabin crew in India. I am 28years old no savings yet. But loan of 3lakhs. Planning to clear all my loans in the next 8 months. After that all my earnings will be my savings. Also I am planning for some business. I am good at art work and cooking also I am a fashion designer. Please suggest me what business will be good for me..also I am completely alone noone to take care of me in future. And I have no backup. Whatever I have earned n I will earn infuture will be my only hope. Please suggest me how can I save also any business ideas.
Ans: Assessing Your Financial Situation
First, congratulations on your plan to clear your loans within the next 8 months. This shows a strong commitment to financial stability. With a clear focus on repaying your debt, you’re already on the right path.

Creating a Debt Repayment Plan
Prioritizing Loan Repayment
Prioritize paying off your Rs 3 lakh loan within the next 8 months. This means allocating a significant portion of your income towards this goal. Calculate the exact monthly payment needed to achieve this within your desired timeframe.

Budgeting Effectively
Create a detailed budget that outlines your income and expenses. Identify areas where you can cut back temporarily to ensure maximum loan repayment. This disciplined approach will accelerate your debt clearance.

Building an Emergency Fund
Importance of an Emergency Fund
Once your loan is cleared, the next step is to build an emergency fund. This fund should cover at least 6 months of living expenses. It provides a safety net in case of unforeseen circumstances, such as job loss or medical emergencies.

How to Save for an Emergency Fund
Set aside a fixed amount each month into a high-interest savings account until you reach your target. This fund should be easily accessible and separate from your regular savings.

Exploring Business Ideas
Given your skills in art, cooking, and fashion design, there are several business ideas that could be a good fit for you. Here are a few to consider:

Online Art Store
Use your artistic skills to create unique art pieces and sell them online. Platforms like Etsy or your own website can help you reach a wide audience.

Home-Based Bakery or Catering
If you enjoy cooking, consider starting a home-based bakery or catering service. You can begin with small orders for friends and family and gradually expand your customer base.

Fashion Design and Boutique
Leverage your fashion design skills to start a boutique. You can create custom designs and offer them through an online store or local market.

Creating a Business Plan
Market Research
Conduct market research to understand the demand for your products or services. Identify your target audience and competitors. This research will help you refine your business idea and develop a strong business plan.

Financial Planning for Business
Estimate the initial investment required for your business. This includes costs for materials, marketing, and other essentials. Plan how you will fund your business, whether through savings, loans, or other sources.

Saving and Investing for the Future
Systematic Investment Plan (SIP)
Once your emergency fund is in place, consider starting a SIP in mutual funds. SIPs allow you to invest a fixed amount regularly, which can grow significantly over time due to compounding.

Public Provident Fund (PPF)
PPF is a safe investment option with attractive interest rates and tax benefits. It’s suitable for long-term savings and helps build a secure financial future.

Recurring Deposits (RD)
RDs in banks allow you to save a fixed amount monthly with guaranteed returns. They are low-risk investments and help inculcate the habit of regular saving.

Diversifying Investments
Importance of Diversification
Diversification spreads your investments across different asset classes, reducing risk and enhancing returns. This approach ensures that poor performance in one asset class doesn’t significantly impact your overall portfolio.

Suggested Allocation
A balanced portfolio might include 50% in equity mutual funds for growth, 30% in debt mutual funds for stability, and 20% in fixed-income instruments like PPF or RD.

Regular Monitoring and Adjustment
Tracking Your Investments
Regularly monitor the performance of your investments to ensure they align with your financial goals. This helps in making informed decisions and necessary adjustments.

Rebalancing Your Portfolio
Rebalance your portfolio periodically to maintain the desired asset allocation. This involves selling over-performing assets and reinvesting in underperforming ones.

Financial Discipline
Consistent Saving and Investing
Consistency is key to successful saving and investing. Save and invest regularly, even if the amount is small. Over time, this disciplined approach will help in accumulating substantial wealth.

Avoiding Impulse Spending
Avoid impulse spending and prioritize your financial goals. This ensures that you have sufficient funds to save and invest regularly.

Importance of Financial Literacy
Educate Yourself
Invest time in educating yourself about financial markets and investment principles. This empowers you to make informed investment decisions.

Stay Updated
Stay updated with market trends and economic developments. This helps in understanding the impact of market movements on your investments.

Role of a Certified Financial Planner
Professional Guidance
A Certified Financial Planner (CFP) can provide personalized investment advice based on your financial goals and risk tolerance. They help in creating a comprehensive financial plan tailored to your needs.

Avoiding Common Investment Mistakes
Over-Reliance on a Single Asset
Avoid putting all your money into a single investment. Diversify your portfolio to spread risk and enhance returns.

Chasing High Returns
Chasing high returns often leads to taking excessive risks. Focus on creating a balanced portfolio that offers steady and sustainable returns.

Emergency Fund
Financial Cushion
Maintain an emergency fund to cover unexpected expenses. This prevents the need to dip into your long-term investments during emergencies.

Setting Realistic Expectations
Long-Term Perspective
Invest with a long-term perspective. While markets may fluctuate in the short term, they tend to offer good returns over the long term.

Patience and Discipline
Patience and discipline are crucial for successful investing. Stick to your investment plan and avoid making impulsive decisions based on market movements.

Investing in Your Future
Starting Early
Starting early gives you the advantage of time. The earlier you start investing, the more you benefit from compounding, resulting in substantial wealth accumulation over time.

Goal-Based Investing
Invest with specific goals in mind. Whether it's expanding your business, buying a house, or retirement, having clear goals helps in creating a focused investment strategy.

Risk Management
Understanding Risk
Understand the risks associated with different investment options. This helps in making informed decisions and choosing investments that match your risk tolerance.

Mitigating Risk
Mitigate risk by diversifying your investments across different asset classes. This ensures that poor performance in one asset class does not significantly impact your overall returns.

Tax Planning
Tax-Efficient Investments
Choose tax-efficient investments that offer deductions and exemptions under various sections of the Income Tax Act. This helps in maximizing your net returns.

Understanding Tax Implications
Understand the tax implications of your investments to plan effectively. This helps in optimizing your investment returns and minimizing tax liability.

Conclusion
Clearing your loan and focusing on savings and investments will set you on a path to financial stability. Leveraging your skills in art, cooking, and fashion design to start a business can provide an additional income stream. Create a diversified investment portfolio and invest regularly to build a secure financial future. Seek guidance from a Certified Financial Planner to develop a personalized financial strategy. Stay disciplined and informed to navigate your financial journey successfully.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7953 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 13, 2025

Asked by Anonymous - Feb 13, 2025Hindi
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Money
Why do Debt Funds offer lower returns as compared to Equity Mutual Funds?
Ans: Debt funds and equity mutual funds serve different purposes in an investor's portfolio. Debt funds offer stability and lower risk, while equity mutual funds focus on high growth with higher risk.

Below are the key reasons why debt funds provide lower returns than equity funds.

1. Nature of Underlying Investments
Debt funds invest in bonds, government securities, corporate debt, and fixed-income instruments.

These instruments provide fixed interest, leading to predictable but lower returns.

Equity mutual funds invest in company stocks, which have the potential for higher capital appreciation over time.

2. Risk-Return Tradeoff
Lower risk means lower return potential in debt funds.

Debt investments focus on preserving capital rather than aggressive growth.

Equities are volatile, but over the long term, they tend to generate higher returns.

3. Interest Rate Sensitivity
Debt fund returns depend on interest rate movements in the economy.

Rising interest rates reduce bond prices, lowering returns in debt funds.

Equity funds are less impacted by interest rate changes and benefit from economic growth.

4. Inflation-Adjusted Returns
Debt funds often fail to beat inflation in the long run.

Equity investments provide inflation-adjusted growth due to rising corporate earnings.

Holding equities for longer durations results in compounding benefits.

5. Growth Potential
Equities represent ownership in businesses that expand over time.

Business growth translates to higher share prices and higher returns.

Debt instruments provide fixed interest, which limits potential upside.

6. Tax Efficiency
Equity mutual funds enjoy lower long-term capital gains (LTCG) tax rates compared to debt funds.

Debt fund gains are taxed as per the investor’s income tax slab, reducing post-tax returns.

This tax treatment makes equities more attractive for long-term wealth creation.

7. Market Performance
During economic growth, companies generate higher profits, leading to higher equity returns.

Debt fund returns depend on interest rate cycles, making them less rewarding in growth periods.

Equities have historically outperformed debt over longer durations.

Finally
Debt funds provide safety and stability but offer lower returns.

Equity mutual funds outperform over time due to business expansion and compounding.

A well-balanced portfolio should include both debt and equity, based on financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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Harsh

Harsh Bharwani  |75 Answers  |Ask -

Entrepreneurship Expert - Answered on Feb 13, 2025

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Career
Sir I am a Engineer by profession snd working in Qatar. Same time i had Cost accountant Degree and passed out way back at 2009. After that no touch with Cost Accounts. Now i am 48 yrs and after few yrs i want to move back to India. But that time if want open a cost accounting firm, what would be the best move i can do to open the consulting firm?
Ans: Hello Mr. Heman,
Reestablishing your career in cost accounting and setting up a consulting firm in India requires careful planning. Start by updating your knowledge through ICAI’s continuing education programs, industry seminars, and professional courses to stay current with evolving regulations and industry practices. Reactivating your ICAI membership and obtaining a Certificate of Practice (CoP) is essential to offer consulting services legally. While still in Qatar, gaining practical exposure by offering freelance or part-time cost auditing or GST advisory services to Indian firms will help establish credibility.

Next, choose a suitable business structure - Sole Proprietorship, LLP, or Private Limited Company - based on your growth plans and compliance preferences. Register your firm with the Ministry of Corporate Affairs and obtain the necessary licenses. Conduct thorough market research to identify your target clients, understand industry needs, and define your service offerings, such as cost audits, financial consulting, and management advisory. A well-structured business plan with clear financial projections will help ensure long-term sustainability.

Investing in technology and infrastructure is crucial. Setting up a professional office, adopting modern accounting software, and leveraging cloud-based financial solutions will enhance efficiency. Building a strong professional network is equally important - reconnect with former colleagues, join industry associations, attend networking events, and establish a digital presence through a website and social media to attract clients.

Lastly, focus on compliance and quality assurance. Adhering to ICAI regulations, tax laws, and ethical standards is critical for maintaining credibility and trust. By systematically following these steps, you can successfully transition back into cost accounting and establish a reputable consulting firm in India, ensuring a stable and rewarding career.

...Read more

Milind

Milind Vadjikar  |1012 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Feb 13, 2025

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Money
Can I change my plan from star FOH to Star Assure. In plan migration form What I write in PED column. my policy number was taken on 19 February 2021, in the first week of March 2021 suddenly my blood pressure increased, due to which the doctor asked me to undergo angiography. After that the doctor asked to do angioplasty immediately and thus on 18 March 2021 I got angioplasty done. Now I am completely healthy, since my illness occurred within 31 days of taking the policy, company agent told me that there is no provision to cover any health related problem within 31 days. Company agent told me that there is no provision to declare any illness midway. Now I am completely healthy. Company not include my above mentioned health condition in my policy. And compny given me reply "Dear Mr. Jain, We acknowledge the receipt of your mail. With reference to our previous telcon, this is to inform that any disease or ailment/illness if found after inception of policy. It is not required to disclose under policy. But if you still wish to disclose the disease then kindly find the attached PED inclusion form, fill and submit us for further evaluation. Note : To note the disease in the policy PED form is mandatory. We request you to provide the Medical reports/ Discharge summary /any relevant /First consultation paper / medical document of the said procedure/diagnosis, which shall be kept for our reference. " What can I do.
Ans: Hello;

Regarding plan migration feasibility you may check with your insurer/insurance agent.

If you want to inform the insurer about your later acquired illness you may furnish the details to them as per their requirement and check their feedback on the same.

Their feedback will decide your next course of action.

Best wishes;

...Read more

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