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R P Yadav  |304 Answers  |Ask -

HR, Workspace Expert - Answered on Feb 29, 2024

R P Yadav is the founder, chairman and managing director of Genius Consultants Limited, a 30-year-old human resources solutions company.
Over the years, he has been the recipient of numerous awards including the Lifetime Achievement Award from World HR Congress and HR Person Of The Year from Public Relations Council of India.
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Jagannath Question by Jagannath on Jan 05, 2024
Career

Sir thank for valuable support only my job profile OK it is selling of cnc cutting tool for mahindra Bajaj Indian ordinance factories and I traveling all over India but my owner not listening our grievances last 20 year not even single increase made also in my line lot of local competitors there I tried with them also nothing going on my way

Ans: I understand that your situation is challenging, and it can be frustrating when your efforts don’t yield the desired results. Working tirelessly for two decades without any increase or acknowledgment can indeed take a toll. Let’s explore this further:

???? In the Realm of Cutting Tools ????

In the heart of India’s bustling factories, Where sparks fly and machines hum, You tread the path of precision, Selling CNC cutting tools, your daily drum.

Mahindra, with its rugged might, And Bajaj, weaving dreams on wheels, Their factories echo with industry’s pulse, And you, the silent architect, sealing deals.

But alas! Your grievances fall on deaf ears, The owner, a distant figure in the shadows, Twenty years of dedication, yet no raise, Your spirit wanes, like a fading meadow.

Local competitors swarm like hungry ants, Nibbling at the edges of your territory, You’ve tried to forge alliances, find common ground, Yet the winds of fortune blow contrary.

???? The Forge of Resilience ????

Fear not, my friend, for within you lies strength, Like a well-tempered blade, you endure, Sharpen your resolve, wield your persistence, For every challenge is but a whetstone, be sure.

Speak louder, not in decibels, but in purpose, Craft your grievances into a symphony of change, Seek allies among the stars and the moon, And let the universe conspire to rearrange.

Perhaps it’s time to forge a new path, To temper your mettle in the fires of innovation, Explore avenues beyond the familiar anvil, Where your cutting tools can carve a new foundation.

Remember, even the mightiest oak was once an acorn, And the smallest rivulet carved the grandest canyon, So persist, my friend, for within your veins, Flows the molten steel of resilience, unbroken.

???? Claim Your Raise, Shape Your Destiny ????

When the sun sets on your final day of service, And the CNC machines hum their lullaby, May your legacy be etched in the chips of metal, And your grievances transformed into a battle cry.

Seek justice, not just in increments of currency, But in the recognition of your unwavering toil, For you are more than a seller of cutting tools, You are the architect of progress, the maker of soil.

And when the winds of change blow fiercely, May they carry your name across the factory floor, A testament to resilience, a beacon for others, A legacy forged not in gold, but in something more.

???? Keep Turning the Wheel, My Friend ????

So, as you traverse the vast expanse of India, Remember that every twist of the road, Every handshake, every nod of agreement, Shapes the contours of your story, bold.

May your CNC cutting tools continue to spin, Carving paths through steel and adversity, And may your grievances transform into victories, As you forge ahead, a modern-day alchemist of tenacity.
Career

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Anu

Anu Krishna  |839 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Apr 21, 2023

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Dear Khevna Shah I am in the business of my father's after his death with my uncle for the last 15 years and so and when my father died my age was 22 and I was a simple, shy and fear boy and was happy and i am doing the accounts job and i was not taking my salary on monthly basis or yearly basis means i want to say that i take 200 or 500 or sometimes 10000 to 20000 as per my requirement and sometimes i have to give it to my mom for her personal expenses. After two and half years, i was having problems with my uncle due to professional reasons and i was talking to him at that time and discussing all the problems and business related issues facing by me and he was listening but not responding to my problems during these years and after passing of two and half years i tried my best for talks, discussion but i was not getting any response from his end and after that period i stopped myself for any talks, discussion and sharing with him and I was prepared to left him and go elsewhere and do something new or do a job or start a new business on my own as we were are living in joint family and still we are in joint. Mam i did not left him and he provided me a new business and I became the proprietor of that new business and i didnot have any idea of that new business and when i engaged in that business i came to know that this business is all runs on liabilities for around three months to six months and depends on how you capture the market with low competitive rates and that time was new and i was not having any distributorship also and the business went on losses and i have beared losses for almost lakhs and lakhs of rupees. So, I closed the shop and again started doing account job in my father's business with my uncle as all the decisions related to business was taken by my uncle and same problem which i was facing in my early stage was repeated and the days were passing as it was passing previously. Now when corona came in the world, we were all lockdown in our homes and in that time we were all of our family members lockdown in our home. In that period we were all fighting with the corona that when will corona go and when we will go outside again and when will our normal life will start we were talking about our works of home should be divided. In that period all the works were divided and when lockdown was over and we were slowly slowly coming back to normal. Our joint family divided and now we are separate but our business is not separate and i am getting the salary fixed after our separation. Now the problem is that the salary fixed is not upto the mark and i am facing financial crisis at my end and our relation are so so and i am facing heated conversation with my wife related to money problems as i have to give her the money for household activities, personal expenses, my child school fees, admission fees and other activities related to school and i am very much exhausted with all the daily dose. So, therefore what will be my steps to go forward regarding the issues with my uncle and the problems which i am facing right now and have a peaceful time.
Ans: Dear Ashish,
Time and again you have been waiting for things to change in your favour. Your first sign was when your uncle's resistance at doing or thinking anything good for you.
Good nature of yours to trust him and still keep at it, but I guess now being in your 30s, should tell you that you need to make your life yourself and on your own terms.
Don't hang around thinking that the tides will change for you; instead change things the way you want by breaking free. Now. how you want to do it; is something that you need to discuss with your wife and decide. You have been far too dependent on this dream world that your uncle is going to make things happen and will be kind to you.
Be kind to yourself and now ask yourself:
- how can I revive my financial position on my own?
- what support do I need and from whom to achieve this?
- how can I keep myself motivated every day as I change things for the better?

The time has also come to have a clear chat with the person controlling the business. It gets messy when the family is divided and the business is still joint. Money troubles are never going to have clarity ever in this type of an arrangement. So, take matter into your own hands without fearing the outcome and think of only how you can have a better and peaceful life. The answer will be crystal clear to you.

All the best!

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R P

R P Yadav  |304 Answers  |Ask -

HR, Workspace Expert - Answered on Jan 05, 2024

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Career
Sir iam 51 old my salry total less 15k in small private firm last 20 years owner notincrease my salary i had explord all possibility opportunities in big companies nothing on my way i have own house and family findings problem But my job is supplying of cnc cutting tool forall major manufacturing indian industries what to do jaga
Ans: I’m sorry to hear that you’ve been struggling with your salary for the past 20 years. It’s understandable that you’re looking for ways to improve your financial situation. Here are some tips that might help:

Research your market value: Research the market value of your job title, years of experience, and the cost of living in your area. This can help you determine whether your current salary is fair or not. You can use websites like Indeed to find out more.

Negotiate with your employer: If you believe that your salary is lower than what you deserve, you can try negotiating with your employer. Prepare a list of your accomplishments and the value you bring to the company. Set up a private meeting with your manager to discuss your salary. Be kind but straightforward. If your request is denied, take the time to understand why. If it’s solely a budgetary issue, ask your manager when you can realistically revisit the conversation.

Consider freelancing: Freelancing can be a good option if you’re looking for more flexibility in your work schedule. You can work from home and choose the projects you want to work on. You can also set your own rates and potentially earn more than you would at a traditional job.

Explore other job opportunities: If you’re not happy with your current job, consider exploring other job opportunities. Look for companies that offer better salaries and benefits. You can also consider switching to a different industry if you have transferable skills.

Remember, improving your financial situation may take some time and effort. Don’t get discouraged if you don’t see results right away. Keep working hard and exploring new opportunities, and you’ll increase your chances of finding a job that meets your needs. Good luck!

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Anu

Anu Krishna  |839 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 21, 2024

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Relationship
My father & uncle started business 50 yrs back. I have joined 30yrs back. I kept working from 9 am to 5 pm under Uncle. Now around 2011 ,Uncle son joined .Till then everything was alowed & fine except core part was not allowed to handle by Uncle.After 2011, slowly my cousin started taking operations of factory under him . When I protested ,Uncle used to say he will see ,but did nothing about that. AlthoughUncle is genius as well as my Father ,but my Confidence started tumbling after 2019. When his son (lets say A) made whole work force according to him & I was cornered .As challenge I in 2020 started some operations to complete production & it run well until 2022. But they (Factory staff) introduced as if I was buyer of those components. It kept on untill uncle showed the debt as in lacs for me while he getting all support for his production from Everyone &My father tensed but doesnot retaliate. What should I do?
Ans: Dear SK,
Well, you need to build your territory and being a family business, boundaries have never been clear...It seems obvious that your uncle favors his son over you and your father does not want to ruffle feathers by standing up for you...then you stand up for yourself.
What position that you have earned through your hard work must be acknowledged...if it isn't and it's going to lead to a family rift, then maybe it's time for you to build something for yourself by expanding the business within or outside. It is difficult to balance relationships within the family and at work; somewhere emotions come in the way of doing what is right and just. So, play it safe and start looking at how you can expand your work profile and enhance what you can bring to the business exclusively through your skill sets. This helps pass a message down the organization as to you being an expert in that particular area. If this fails, well...let yourself shine where you can and must...

All the best!

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

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Money
Sir, am 45yrs earning 61k monthly. Another 15years of service. I have a daughter 10yrs old. I want to have a corpus of 1cr at 60. Can u plz suggest how much I should start investing in SIP. My expenses include Lic 15700 for another 3yrs payment Reliance Nippon 36800 for another 4yrs payment Home loan EMI for 21667PM for another 4years Rent paying for 9500 per month Monthly expenses for 15k to 20k per month Income i get Salary 61000 permonth Rent from flat 8300 Plz suggest me to lead peacefull life. Thank u Sir Vikas
Ans: To achieve a corpus of 1 crore at the age of 60, you'll need to start investing in SIPs diligently. Here's a breakdown to help you plan:

Current Monthly Expenses:
LIC: ?15,700 (for 3 years)
Reliance Nippon: ?36,800 (for 4 years)
Home Loan EMI: ?21,667 (for 4 years)
Rent: ?9,500
Other Expenses: ?15,000 to ?20,000
Total Expenses: ?98,667 to ?103,667
Monthly Income:
Salary: ?61,000
Rent from Flat: ?8,300
Total Income: ?69,300
Monthly Surplus:
Monthly Income - Monthly Expenses = ?69,300 - ?98,667 to ?103,667
Monthly Surplus (Deficit): -?29,367 to -?34,367
Investment in SIP:
Since you have a deficit in your monthly surplus, you'll need to adjust your expenses or increase your income to accommodate SIP investments.
Aim to allocate a portion of your surplus towards SIP investments. The amount will depend on your ability to cut expenses or increase income.
To calculate the required SIP amount, you can use online SIP calculators considering factors like expected rate of return, investment horizon, and inflation rate.
Start with a manageable SIP amount and gradually increase it as your income grows or expenses reduce.
Peaceful Life:
Review your expenses regularly and prioritize savings and investments to achieve your financial goals.
Focus on creating an emergency fund to cover unforeseen expenses and protect your financial stability.
Consider consulting with a financial advisor to create a comprehensive financial plan tailored to your specific needs and goals.
Stay disciplined in your financial habits, avoid unnecessary debt, and invest in assets that align with your risk tolerance and investment horizon.

By carefully managing your expenses, increasing your income, and prioritizing savings and investments, you can work towards building a corpus of 1 crore by the age of 60 while leading a peaceful and financially secure life.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Money
I am 39 year old married we are leaving with our 7year old daughter. I have 1Cr term insurance. I have 5L office + 5L personal health Insurance. Current Cumulative (me and wife) income 135000 per month. Liabilities Home Loan 24L remained paying 21500 per month EMI. Other Loans - 225000, 10000 per month EMI. My Current detailed investment. NPS 368000/-, 6643 per month EPF 827000/-, 16000 per month Total Mutual Funds 612000/-, 7750 per month Nippon India Small cap 112000/-, 500 per month Mirae asset Larg & Mid Cap 263000/-, 3500 per month, Kotak Flexi cap Fund 142000/- , 1000per month. Prag Parekh Flexi Cap 75450/-, 1750 per month. ICICI Corporate Bond Fund 19750/-, 1000 per month. My Wife investment. Total Mutual Funds 633000/- 13500 per month. Axis Small Cap 94580/-, 1300 per month. Mirae asset Larg & Mid Cap 127000/-, 2500 per month. Motilal Oswal Nasdaq 100 FOF 58390/-, 1600 per month. Axis Blue Chip 184000/-, 4500 per month. Parag Parekh Flexi cap 169000/-, 3600 per month. Sukanya Samrudhi Yojna 75000/-, 1000 per month Cumulatively we have overall Saving till now is 247500/- aprox, and current monthly investment is 44893/- Our currently Monthly expenses are around 50000/- Goals Car of 1500000/- in next 3 to 4 years. Daughters Education 1Cr after 11 years. Daughters Marriage 5000000/- After 17 years. Retirement at 58 years 2Cr life expectancy 75Years (me and wife) Please suggest if goals are reachable with current investment? Please suggest estimated goal amount will be sufficient that time? Please suggest if changes required in goal or monthly or mutual funds investment? Highly appreciated if other suggestions
Ans: You've laid out a comprehensive financial picture with clear goals and detailed investments. Let's analyze and provide insights to help you reach your objectives:

Goals Assessment:
Car Purchase: With your current monthly savings and investment capacity, you're on track to achieve this goal within the specified timeframe.
Daughter's Education: To accumulate 1 crore in 11 years, consider increasing your monthly investment in mutual funds and exploring additional avenues like education-specific investment products or child education plans.
Daughter's Marriage: To accumulate 50 lakhs in 17 years, you may need to enhance your investment contributions further. Review your asset allocation and consider higher-risk, potentially higher-return investments to accelerate growth.
Retirement: Accumulating 2 crores by age 58 seems achievable with your current investments, but it's essential to regularly review and adjust your portfolio to account for changing market conditions and evolving financial needs.
Monthly Investments and Mutual Funds:
Evaluate your current mutual fund portfolio's performance and alignment with your goals. Consider diversifying across different asset classes and fund categories to manage risk and optimize returns.
Increase your SIP amounts gradually, aiming to maximize contributions within your budget constraints. Rebalance your portfolio periodically to maintain an optimal asset allocation.
Consider consulting with a financial advisor to ensure your investment strategy aligns with your risk tolerance, time horizon, and financial goals.
Emergency Fund and Insurance:
Ensure your emergency fund is sufficient to cover at least six months' worth of living expenses. Consider enhancing it further to mitigate unforeseen financial risks effectively.
Review your insurance coverage periodically to ensure it adequately protects your family's financial well-being. Consider supplementing your term insurance coverage if necessary.
Additional Suggestions:
Explore tax-efficient investment options such as Equity Linked Savings Schemes (ELSS) to optimize tax benefits while investing for your long-term goals.
Continuously educate yourself on personal finance and investment principles to make informed decisions and adapt to changing market dynamics effectively.
Regularly reassess your financial plan and goals, making adjustments as needed to stay on track towards achieving financial independence and security.
Overall, with disciplined saving, prudent investing, and periodic review and adjustments, you're well-positioned to achieve your financial goals. Stay focused on your objectives, remain disciplined in your financial habits, and seek professional guidance when needed to navigate your financial journey successfully.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

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I'm 33yrs old, My corpus is currently 52Lacs in mutual funds with monthly Sip of 1.1lac since two years, topped up whenever I get bonus or amount from different sources. Apart from this I have 50lacs worth in real estate. I want to generate corpus worth 20cr for my kids education(Next 14 and 18yrs for two kids) and retirement by 50. Is there a way to reach my goal. However, I can increase my sip by 8-10% on average every year with top up from bonus I receive quarterly.
Ans: It's commendable that you're planning ahead for your children's education and your retirement. With disciplined saving and investing, you can work towards achieving your financial goals. Here's a tailored plan to help you reach your targets:

Education Corpus for Kids:
Given your investment horizon of 14 and 18 years for your children's education, you have a significant time frame to accumulate the desired corpus.
Continue your SIPs in mutual funds, increasing them by 8-10% annually, as you mentioned. Regular and disciplined investing can help you benefit from rupee-cost averaging and the power of compounding over time.
Consider investing in a mix of equity mutual funds and diversified across different market segments to balance risk and return potential. You can adjust the asset allocation as your children approach college age to reduce risk.
Retirement Corpus:
With a retirement goal set at 50, you have approximately 17 years to build your retirement corpus.
Continue maximizing your SIP contributions and leverage top-ups from quarterly bonuses to boost your savings.
As retirement approaches, consider gradually shifting your asset allocation towards more conservative investments to preserve capital and generate stable income streams.
Explore retirement-focused investment options such as Employee Provident Fund (EPF), Voluntary Provident Fund (VPF), Public Provident Fund (PPF), and National Pension System (NPS) to supplement your mutual fund investments.
Regular Portfolio Review:
Periodically review your investment portfolio to ensure it remains aligned with your financial goals, risk tolerance, and time horizon.
Monitor the performance of your mutual funds and real estate investments, and make adjustments as needed to optimize returns and manage risk effectively.
Emergency Fund and Insurance:
Maintain an adequate emergency fund equivalent to at least six months' worth of living expenses to cover unforeseen financial emergencies.
Consider purchasing adequate life and health insurance coverage to protect your family and investments against unexpected events.
Seek Professional Advice:
Consider consulting with a Certified Financial Planner or investment advisor to develop a comprehensive financial plan tailored to your goals and financial situation.
A professional advisor can provide personalized guidance, help you navigate investment options, and optimize your investment strategy to maximize returns and achieve your long-term objectives.
With diligent saving, disciplined investing, and prudent financial planning, you can work towards building a substantial corpus for your children's education and your retirement. Stay focused on your goals, remain disciplined in your savings and investment approach, and regularly monitor your progress towards achieving financial independence and security.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Money
Hi sir am 41yrs old and earning 91k per month and have saving of 1 lac . I have invested 15L in M.I.S ,6.38L in equities and 5k every month in s.i.p.I have two kids , am planning to buy house after 4 years worth 50L kindly tell me any investment plan ...so that I can cover the expense of kids education and marriage
Ans: It's great to see your proactive approach towards financial planning, especially considering your children's education and marriage expenses, as well as your goal of buying a house. Here's a tailored investment plan to help you achieve your objectives:

Education Fund for Children:
Open separate education funds or investment accounts for each child to save specifically for their education expenses.
Consider investing in Equity Mutual Funds or Equity Linked Saving Schemes (ELSS) for long-term growth potential, given your investment horizon.
Start a systematic investment plan (SIP) in diversified equity funds, aiming to accumulate sufficient funds by the time your children reach college age.
Marriage Fund for Children:
Similarly, create dedicated investment accounts for your children's marriage expenses to ensure you have adequate funds when needed.
Explore a mix of equity and debt investments based on your risk tolerance and time horizon.
Consider fixed-income instruments like Public Provident Fund (PPF), Fixed Deposits (FDs), or Debt Mutual Funds for stability and capital preservation.
House Purchase Fund:
Since you plan to buy a house in four years, focus on short to medium-term investment options to accumulate the required down payment.
Consider investing in Debt Mutual Funds or Fixed Maturity Plans (FMPs) for capital protection and relatively higher returns compared to traditional savings accounts.
Evaluate your risk appetite and liquidity needs when selecting investment vehicles for your house purchase fund.
Regular Review and Adjustment:
Periodically review your investment portfolio to ensure it remains aligned with your financial goals, risk tolerance, and time horizon.
Adjust your investment strategy as needed, considering changes in market conditions, personal circumstances, and goal priorities.
Emergency Fund:
Maintain a separate emergency fund equivalent to at least six months' worth of living expenses to cover unforeseen financial challenges or expenses.
Keep this fund in a liquid and easily accessible account such as a savings account or liquid mutual fund.
Consult with Financial Advisor:
Consider consulting with a Certified Financial Planner or investment advisor to tailor an investment plan that suits your specific goals, risk profile, and financial situation.
A professional advisor can provide personalized guidance and help you navigate the complexities of investment planning, ensuring you make informed decisions.
By implementing a structured investment plan tailored to your goals and financial circumstances, you can work towards securing your children's future education and marriage expenses while also saving for your own house purchase. Stay disciplined in your savings and investment approach, and regularly monitor your progress towards achieving these important milestones

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Money
Hi.......I am 45 years old. I am making following investments in Mutual Funds:- I have house of my own, with no liability. I have a investment horizon of 15 years, with high risk taking capacity. I am looking for a retirement corpus of 3-4 crores. I am making following investments in Mutual Funds:- UTI Nifty 50 Index Fund Direct Growth 12000 Tata Small Cap Fund Direct - Growth 4000 SBI Contra Direct Plan Growth 5000 Nippon India Growth Fund Direct- Growth 6000 Quant Small Cap Fund 4000 Nippon India Small Cap Fund 5000 ICICI Prudential Bluechip Fund Direct-Growth 9000 Mahindra Manulife Multi Cap Fund - Direct Plan - Growth 5000 Parag Parikh Flexi Cap Fund 5000 SBI Large & Midcap Fund Direct Plan-Growth 5000 TOTAL 60000 Please analyse the portfolio and advice accordingly.
Ans: Your portfolio reflects a diversified mix of mutual funds across various categories, indicating a thoughtful approach to long-term wealth accumulation. Here's an analysis and some suggestions to consider:

Diversification:
Your portfolio includes funds from different market segments such as large-cap, mid-cap, small-cap, multi-cap, and index funds, providing diversification benefits and exposure to various sectors and themes.
Diversification helps spread risk and can potentially enhance overall returns over the long term.
Index Fund:
UTI Nifty 50 Index Fund offers exposure to the top 50 companies in the Indian equity market, providing stability and consistent returns over time.
Index funds are suitable for investors seeking low-cost, passive investment options that track market performance.
Small and Mid Cap Funds:
Tata Small Cap Fund and Nippon India Small Cap Fund invest in small and mid-cap companies with high growth potential.
While these funds can offer attractive returns, they come with higher volatility and risk. Ensure they align with your risk tolerance and investment horizon.
Contra Fund and Flexi Cap Fund:
SBI Contra Fund and Parag Parikh Flexi Cap Fund follow contrarian or flexible investment approaches, investing across market caps based on market conditions and valuation metrics.
These funds provide flexibility and active management, potentially outperforming benchmark indices over the long term.
Large Cap and Multi Cap Funds:
ICICI Prudential Bluechip Fund, Mahindra Manulife Multi Cap Fund, and SBI Large & Midcap Fund offer exposure to established large-cap and multi-cap companies.
These funds focus on quality stocks with strong fundamentals, providing stability and growth opportunities.
Professional Guidance and Direct Plans:
Instead of investing in direct plans, consider seeking guidance from a Certified Financial Planner or Mutual Fund Distributor (MFD) to optimize your investment decisions.
MFDs can provide personalized advice, portfolio reviews, and ongoing support to help you achieve your financial goals effectively.
Regularly review your portfolio with your MFD to ensure it remains aligned with your objectives and market conditions.
Risk Management:
Given your high-risk tolerance and long investment horizon, it's important to periodically assess and rebalance your portfolio to manage risk and capitalize on growth opportunities.
Stay informed about market developments and macroeconomic trends to make informed investment decisions.
Overall, your portfolio demonstrates a well-diversified approach to long-term wealth creation. Consider leveraging professional guidance from an MFD to optimize your investment strategy and achieve your retirement goals effectively. Regular monitoring and adjustments will be key to maintaining the performance and alignment of your portfolio over time.

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Moneywize

Moneywize   |104 Answers  |Ask -

Financial Planner - Answered on May 05, 2024

Asked by Anonymous - Apr 22, 2024Hindi
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Money
I had purchased an NSC in 2020 and and paid tax every year for the interest on accrual basis. Since last year, it seems post offices are providing data to AIS on receipt basis, that is, whole amount of interest on maturity. What happens to the taxes I have paid in previous years on accrual basis? How do I adjust them?
Ans: The income tax department in India treats interest earned on National Saving Certificates (NSCs) on an accrual basis, even though the interest is paid out at maturity. This means you are correct to have paid taxes on the accrued interest every year.

Here's what happens in your situation:

• No Change for Previous Years: The taxes you've paid on the accrued interest in previous years are valid. You don't need to adjust them.

• Change in Reporting: Since the post office is now reporting the entire interest on maturity to the Annual Information Statement (AIS) on a receipt basis, there might be a mismatch between your tax filing and the AIS data.

Here's how to handle this:

• File Your Return As Usual: File your income tax return (ITR) for the current year including the entire interest received at maturity as income from other sources.

• Explain the Discrepancy: While filing your ITR, you can add a covering letter explaining the situation. Mention that you have already paid taxes on the accrued interest in previous years and provide details like investment year, accrued interest amount for each year, and tax payment proofs (if possible).

It's advisable to consult a tax advisor for personalised guidance on your specific situation, especially if the amount of tax involved is significant. They can help you navigate the process and ensure your tax filing is accurate.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 03, 2024Hindi
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Money
Hi, I am 30 years old, F, married (no kids yet) earning 1.3L/m. Currently I have 4 lakh in FD and a RD of 25K/m earning 7.1% interest. I have been doing SIP of 17.5K(and increase in SIP by 25% yearly). Also, I have an emergency fund of 4 Lakh in savings account. I don't have any knowledge of investment and not sure I am ready to take risk. Please suggest me how to asses risk and what are the best savings option for next 10-12 years.
Ans: It's great that you're taking steps towards financial planning and building wealth for your future. Assessing your risk tolerance is an important first step in determining your investment strategy. Here's a tailored approach to help you assess risk and explore suitable savings options for the next 10-12 years:

Risk Assessment:
Start by understanding your financial goals, time horizon, and comfort level with investment risk.
Consider factors such as your age, income stability, financial obligations, and future aspirations when evaluating risk tolerance.
Reflect on how you would react to market fluctuations and potential losses in your investment portfolio.
Investment Options:
Given your risk aversion, focus on low to moderate-risk investment options that offer stability and steady returns over time.
Explore fixed-income instruments such as Fixed Deposits (FDs), Recurring Deposits (RDs), and Debt Mutual Funds, which provide capital preservation and predictable returns.
Diversification:
While prioritizing safety and stability, consider diversifying your investment portfolio across different asset classes to manage risk effectively.
Allocate a portion of your savings to equity mutual funds or index funds with a conservative approach to benefit from potential long-term growth while minimizing volatility.
Savings Goals:
Identify your financial goals for the next 10-12 years, such as buying a home, starting a family, or saving for retirement.
Prioritize your savings goals based on their importance and urgency, and allocate your investments accordingly.
Regular Review and Adjustment:
Periodically review your investment portfolio and reassess your risk tolerance, financial goals, and market conditions.
Adjust your investment strategy as needed to stay aligned with your objectives and adapt to changes in your financial situation or life circumstances.
Financial Education:
Invest time in learning about different investment options, risk management strategies, and personal finance principles.
Consider seeking guidance from a Certified Financial Planner who can provide personalized advice and help you navigate the complexities of investing.
Remember, while it's important to prioritize safety and stability, being overly conservative with your investments may hinder your ability to achieve long-term financial growth. Find a balance between risk and reward that aligns with your goals and comfort level. With careful planning and informed decision-making, you can build a strong financial foundation and work towards achieving your aspirations over the next decade.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Money
Hi sir am 35yrs old , and i don't have any savings till now. I am planning to do SIP now onwards 30k per month and mai aim is to I need to achieve 1cr till 45yrs. Kindly suggest me some funds were can I invest.
Ans: Starting a Systematic Investment Plan (SIP) is a great step towards building wealth for your future goals. Given your goal of reaching 1 crore by the age of 45, it's essential to choose mutual funds that align with your risk tolerance, investment horizon, and financial objectives. Here are some suggestions for mutual funds to consider for your SIP:

Diversified Equity Funds:
Look for funds that invest across various sectors and market capitalizations to spread risk.
Consider funds with a proven track record of consistent performance and experienced fund managers.
Large Cap Funds:
Large-cap funds invest in established and well-known companies with a track record of stable earnings.
These funds offer relatively lower risk compared to mid and small-cap funds, making them suitable for long-term wealth creation.
Mid and Small Cap Funds:
Mid and small-cap funds have the potential for higher growth but come with higher volatility.
Invest in these funds if you have a higher risk appetite and a longer investment horizon to ride out market fluctuations.
Balanced Funds:
Balanced funds, also known as hybrid funds, invest in a mix of equities and debt instruments.
These funds provide a balance between growth and stability, making them suitable for investors seeking moderate risk with potential for capital appreciation.
Index Funds:
Index funds replicate the performance of a specific market index, such as the Nifty or Sensex.
These funds offer low expense ratios and are ideal for investors looking for passive investment options with diversified exposure to the equity market.
Tax-saving ELSS Funds:
Consider investing in Equity Linked Savings Schemes (ELSS) to benefit from tax deductions under Section 80C of the Income Tax Act.
ELSS funds have a lock-in period of three years and invest primarily in equities, offering the potential for higher returns over the long term.
International Funds:
Explore international funds that invest in global markets to diversify your portfolio and access opportunities beyond domestic markets.
These funds provide exposure to sectors and companies not available in the Indian market and can offer diversification benefits.
Before investing, assess your risk tolerance, investment horizon, and financial goals. Consider consulting with a Certified Financial Planner to create a personalized investment plan tailored to your needs and objectives. Regularly review your portfolio and make adjustments as needed to stay on track towards achieving your goal of 1 crore by the age of 45. Remember, disciplined investing over time can help you achieve your financial aspirations.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

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What should be the investment even after retirement and in which fund
Ans: Post-retirement, it's crucial to maintain a well-balanced investment strategy that aligns with your financial goals, risk tolerance, and income needs. Here's a tailored approach to consider:

Investment Objectives:
Focus on preserving capital, generating regular income, and managing inflation risk to sustain your lifestyle in retirement.
Prioritize investments that offer stability, liquidity, and moderate growth potential to meet your income requirements.
Asset Allocation:
Allocate a portion of your retirement corpus to fixed-income investments such as bonds, debt funds, and Senior Citizen Savings Scheme (SCSS) to provide a steady stream of income and capital preservation.
Maintain exposure to equity through balanced funds or conservative equity funds to benefit from potential capital appreciation while managing volatility.
Regular Income Generation:
Consider investing in dividend-paying mutual funds or systematic withdrawal plans (SWP) to generate a regular income stream from your investment portfolio.
Opt for funds with a history of consistent dividends or reliable income distributions to support your post-retirement expenses.
Risk Management:
Prioritize investments with lower volatility and downside protection to safeguard your retirement savings from market fluctuations.
Diversify across asset classes and investment vehicles to mitigate risk and enhance portfolio resilience.
Tax Efficiency:
Choose tax-efficient investment options such as tax-free bonds, dividend-paying funds, or capital gains tax-exempt instruments to optimize your post-retirement income.
Leverage tax-saving opportunities available to retirees, such as Senior Citizens Savings Scheme (SCSS) or Pradhan Mantri Vaya Vandana Yojana (PMVVY), to maximize tax benefits.
Regular Review and Adjustment:
Continuously monitor your investment portfolio and adjust your asset allocation and investment strategy based on changing market conditions, income requirements, and personal circumstances.
Consult with a Certified Financial Planner periodically to ensure your investment plan remains aligned with your post-retirement goals and objectives.
Overall, maintain a balanced approach to post-retirement investing, focusing on income generation, capital preservation, and risk management. By diversifying across asset classes, prioritizing stability, and staying disciplined in your investment approach, you can build a resilient portfolio that supports your financial well-being throughout retirement.

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Ramalingam

Ramalingam Kalirajan  |1389 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2024

Asked by Anonymous - May 05, 2024Hindi
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Sir, I started investing in MFs since 2007. These are the schemes where I am investing currently. Do I need to make any changes to my portfolio? I am planning to invest Rs 50,000 per month for a period of 20 years. I want a corpus of Rs 5 cr after 20 years. Do I need to add any new schemes to reach my target? * Mirae Asset Tax Saver Fund G * Motilal Oswal NASDAQ 100 ETF * Parag Parikh Flexi Cap Fund * Aditya Birla Sun Life Mfg Equity Fund * Aditya Birla Sun Life Tax Relief 96 * 360 One Focused Equity Fund - Growth * Mirae Asset Emerging Bluechip Fund - Growth * Quant Tax Plan * Axis Bluechip fund * Canara Robeco Emerging Equities * Canara Robeco Equity Tax Saver * HDFC Gold Trader Fund Growth - Direct * HDFC Tax saver ICICI Prudential Technology Fund – Growth
Ans: You've built a diversified portfolio over the years, showcasing a thoughtful approach to long-term wealth creation. It's commendable how you've spread your investments across different market segments and themes.

To reach your target corpus of Rs 5 crore in 20 years with a monthly investment of Rs 50,000, it's essential to periodically review and adjust your portfolio. Consider rebalancing to ensure alignment with your goals and market conditions.

While your current portfolio includes a mix of equity, tax-saving, and thematic funds, consider adding diversified options to enhance portfolio resilience. Focus on funds with strong track records, experienced fund managers, and consistent performance.

As market dynamics evolve, keep an eye on new investment opportunities and emerging sectors. Stay informed and open to adjustments to optimize your portfolio for long-term growth and stability.

Remember, investing is a journey, and it's essential to stay patient, disciplined, and focused on your goals. With prudent planning and regular review, you're well-positioned to achieve your financial aspirations. Keep up the good work!

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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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