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Is BE-CSE at BITS Pilani a good decision for my son's future?

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Patrick Dsouza  |1323 Answers  |Ask -

CAT, XAT, CMAT, CET Expert - Answered on Oct 11, 2024

Patrick Dsouza is the founder of Patrick100.
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Asked by Anonymous - Oct 09, 2024Hindi
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Career

My son took admission in BE-CSE in BITS,Pilani,Pilani campus.He was also getting lower branch in top iit.is this is right decision future wise.

Ans: If he is interested in CSE then it is a correct decision. If you are clear with the course you want to pursue then it makes sense to pursue that course.
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Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Money
I am 45 years old I have savings of 60 lac including SIP/ PF/LIC , I am investing in SIP 21k per month, I have running loan of 12 lac against housing and 2.5 years are remaining for closure , I am paying 43500/M EMI against this loan (Loan out standing is 11 lac as on date), i have 1 cr properties including this loan property, I have two kinds with are studying in 10 and 6 respectively, kindly review my plan and suggest for better child education, kids are interested in engineering field, I want 5cr at the time of retirement. I also have 50 lac term plan and 7 lac health insurance
Ans: You have taken good steps so far. However, a 360-degree review will help align your actions with your long-term goals.

Let’s review and improve your financial roadmap from all angles.

? Savings and Investments: Current Position

– You have built Rs. 60 lakh in total savings. That is encouraging.
– Your SIP of Rs. 21,000 monthly is a good ongoing commitment.
– You hold EPF/PF and LIC. We will assess the LIC part shortly.
– A term insurance of Rs. 50 lakh is good, but may need enhancement.
– Rs. 7 lakh health insurance is satisfactory for now.
– Your total outstanding loan is Rs. 11 lakh.
– EMI of Rs. 43,500/month is a large chunk of outgo.
– Property value of Rs. 1 crore includes the mortgaged one.

? Review of Loan and EMI Commitments

– Your housing loan has only 2.5 years left.
– Try not to prepay if the interest rate is below 8.5%.
– Continue EMI and preserve liquidity for education and investment.
– If EMI is straining cash flow, partial prepayment may help.
– Avoid taking any new loans till this one is cleared.

? LIC and Insurance Policies Review

– You mentioned LIC as part of your Rs. 60 lakh savings.
– If you hold LIC policies with insurance + investment mix, review returns.
– Typically, they deliver 4% to 5% net annual returns.
– You should consider surrendering such policies.
– Reinvest that money into diversified mutual funds.
– This will enhance returns and give more liquidity.

? Review of SIPs: Improving Structure

– Rs. 21,000 SIP is a good monthly habit.
– Ensure the SIPs are in diversified, actively managed funds.
– Direct funds may seem cheaper but lack guidance.
– A Certified Financial Planner and Mutual Fund Distributor offers regular review.
– Regular funds give trail-based service and handholding.
– This ensures that your SIPs are well-aligned to your changing goals.

? Avoiding Direct and Index Funds

– Direct mutual funds may not suit long-term non-DIY investors.
– Lack of regular reviews can reduce overall performance.
– Index funds only mirror the market.
– They can’t outperform in falling or sideways markets.
– Active funds, managed by professionals, adapt to changes.
– This gives you better compounding over the long term.

? Child Education Planning: Immediate Priority

– Your elder child is in Class 10.
– In 2 years, engineering education cost will begin.
– For IIT/NIT or private colleges, you will need Rs. 30–40 lakh over time.
– Start creating a separate goal-based corpus today.
– Dedicate a new set of SIPs for this goal.
– Use short- and medium-term debt + hybrid funds as the horizon is near.
– Avoid using real estate for funding this goal.
– Real estate is illiquid and not a reliable education planning asset.
– Do not break existing long-term SIPs for education.
– Instead, channel bonuses, fixed deposits, or partial redemptions from LIC.
– Ensure the education fund is secure, liquid, and growing.

? Retirement Goal of Rs. 5 Crore: Planning Forward

– You are 45 now and have 15 years till 60.
– Your target of Rs. 5 crore is realistic with discipline.
– Continue your current SIPs and increase them annually.
– Even a 10% annual increase can have huge impact.
– You can start goal-specific SIPs earmarked only for retirement.
– Avoid using this corpus for other needs like weddings or education.
– Split investments between equity mutual funds and NPS for long term.
– Ensure asset allocation is periodically rebalanced.
– Do not withdraw PF at job switch or pre-retirement.
– Keep EPF/VPF growing till retirement for safe capital.

? Risk Cover: Life and Health Protection

– Rs. 50 lakh term cover is modest considering your goals.
– Ideally, life cover should be 10–15x of annual expenses + loans.
– You are the key provider for two kids.
– Enhance term plan to Rs. 1.5 crore at least.
– It is cheap at your age and gives peace of mind.
– Health insurance of Rs. 7 lakh is good as a start.
– Ensure you have family floater with critical illness benefit.
– Buy super top-up to enhance cover affordably.
– Avoid depending only on employer insurance.

? Emergency Fund: Liquidity Planning

– Maintain minimum 6–9 months of expenses as emergency corpus.
– That is around Rs. 5–6 lakh at your spending level.
– Keep this in liquid mutual funds or sweep-in FDs.
– Never touch this fund for investments or EMIs.
– This gives stability during job changes or family emergencies.

? Estate and Goal Protection Planning

– Prepare a basic Will for clarity on asset transfer.
– Assign nominees to all insurance, MF, and bank accounts.
– Use joint holding and power of attorney where required.
– This avoids legal issues in your absence.
– Educate spouse about location and structure of investments.
– Keep a simple document with all financial details.

? Children’s Future: Balance Dreams with Planning

– Your children are leaning towards engineering.
– Fees for IITs are low, but coaching, hostel, and other costs are high.
– Private colleges can cost Rs. 10–15 lakh per child per course.
– Plan separately for education and marriage.
– Keep their future financially independent of your retirement plan.
– You can also consider small scholarships or education loans if needed.
– Do not compromise retirement for children’s goals.
– A Certified Financial Planner can help simulate education and retirement goals together.

? Strategy for the Next 5 Years

– Repay the housing loan fully over 2.5 years.
– Increase SIPs after EMI burden ends.
– Shift LIC investments to mutual funds.
– Create separate SIPs for children’s education and marriage.
– Enhance term cover and top-up your health policy.
– Track your net worth and asset allocation every 6 months.
– Use regular mutual funds through a Certified Financial Planner.
– Avoid DIY mistakes that can derail your goals.

? Tax Planning and Capital Gains

– Be mindful of new mutual fund tax rules.
– Equity fund LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Equity STCG is taxed at 20%.
– Debt fund gains are taxed as per your income slab.
– Use tax harvesting methods if gains are nearing threshold.
– Keep capital gain statements updated every year.

? Investment Discipline and Growth Outlook

– Automate your investments through SIP/STP modes.
– Avoid timing the market. Stay invested through cycles.
– Rebalance your portfolio yearly based on risk appetite.
– Avoid frequent switches between funds.
– Use performance reviews with a Certified Financial Planner.
– Focus on time in market rather than timing the market.
– Avoid high-risk options like ULIPs, PMS, NFOs, or stock tips.

? Avoid Common Mistakes

– Don’t redeem mutual funds prematurely.
– Don’t borrow for investing or insuring.
– Don’t over-allocate to real estate.
– Don’t use index or direct mutual funds without guided support.
– Don’t mix insurance with investment again.
– Don’t miss documentation and nomination hygiene.

? Finally

– You are doing well, but scope for improvement is strong.
– Focus now should be on creating goal-based portfolios.
– Move out of underperforming LIC and fixed instruments.
– Protect your family better with proper insurance.
– Separate kids’ future from your retirement goal.
– Use expert guidance to stay on track for Rs. 5 crore goal.
– Maintain liquidity, discipline, and a regular review structure.
– Align all financial decisions with long-term life priorities.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Money
So many add in face book that invest 21000 trading through ai & get finacial freedom. Is it true ?
Ans: Many people fall into traps like this. Let's understand this issue clearly and from all sides. You mentioned an ad claiming you can invest Rs. 21,000 and get financial freedom using AI trading. These are very risky promises. You need to be very cautious.

Let’s do a full 360-degree review before you trust such ideas.

? What These Ads Usually Claim

– They promise high daily or weekly returns.
– They show fake screenshots of big profits.
– They say AI or automation will make money for you.
– They show luxury cars, villas, and easy life.
– They use words like “passive income” and “financial freedom”.
– They try to sell “dreams” not real investment.

? What Really Happens Behind These Ads

– Most of these are scams or misleading trading setups.
– Some operate like MLM or Ponzi schemes.
– They ask for initial investment, then demand more.
– They do not follow SEBI or RBI rules.
– Your money may not come back at all.
– You may also get trapped legally in a scam.

? Why You Should Not Fall for These

– No one can predict market with perfect accuracy.
– AI trading has risk, even for experts.
– Retail investors are often the losers in such platforms.
– There is no transparency in such systems.
– No SEBI registered platform will give such promises.
– Easy money never exists in investing.

? Difference Between Real Investments and Such Scams

– Real investment is slow, steady, and requires planning.
– It does not give daily or weekly profits.
– Real financial freedom needs time and discipline.
– Real investments are done through mutual funds, PF, NPS.
– You work with a Certified Financial Planner for guidance.
– Real investing respects your life goals and risk appetite.

? Why Quick-Rich Schemes Fail Always

– They don’t follow basic rules of investing.
– They focus on attracting people with greed.
– They work till new people put money.
– Once that stops, everything collapses.
– Most people lose everything they invest.
– You may not even get back the original Rs. 21,000.

? Don’t Mix AI Buzzword with Real Investment

– AI is just a tool, not magic.
– Even AI models can’t remove market risks.
– It may help trained traders, not common investors.
– Trusting unknown AI platforms is extremely dangerous.
– SEBI or RBI doesn’t approve any AI-only trading product.
– Always check credentials of the platform and people.

? How Certified Financial Planners Help Instead

– They help create a realistic goal-based plan.
– They review your income, expenses, and life goals.
– They guide you in selecting mutual funds wisely.
– They help with asset allocation and rebalancing.
– They monitor market trends and adjust your portfolio.
– Their advice is built around your needs and not trends.

? Why Mutual Funds Are Better Than Such Traps

– Mutual funds are SEBI-regulated and transparent.
– You get regular statements and track returns.
– You have liquidity, flexibility, and lower risk.
– Mutual funds give compounding over time.
– You can invest monthly in SIPs starting from Rs. 500.
– You can also set up Systematic Withdrawal Plans later.

? Avoid Direct Plans Without Proper Knowledge

– Direct mutual funds need constant monitoring.
– You have to review fund performance alone.
– You miss personalised help and portfolio rebalancing.
– In market downturns, you may panic or exit wrongly.
– Regular funds with CFP-backed MFD give better hand-holding.
– Their support during volatility protects your emotions and money.

? Don’t Choose Index Funds at Retirement Stage

– Index funds are fully equity-based and volatile.
– They don’t have fund manager protection.
– If market crashes, you lose without control.
– No option to move to safer sectors or bonds.
– Actively managed funds adjust according to market changes.
– At your age or risk level, safety is key.

? How You Should Plan for Financial Freedom Instead

– Set a goal for monthly income or retirement fund.
– Decide how much risk you can take.
– Build a mix of safe and moderate-return products.
– Invest through certified MFD with CFP support.
– Start SIPs if you are earning monthly.
– Avoid any investment that promises fixed profits from stock market.

? Red Flags to Watch in Ads Like These

– Guaranteed returns without risk mentioned.
– Asking for urgent payments via UPI or crypto.
– No registered office or license numbers shown.
– Promises like “double in 3 months”.
– Referral schemes for earning income.
– Contact details keep changing.

? What You Can Do If Already Trapped

– Stop further investments or top-ups.
– File a complaint at cybercrime.gov.in.
– Inform your bank to watch suspicious activity.
– Try to recover funds if any wallet traceable.
– Warn others and share your experience if safe.
– Talk to a Certified Financial Planner for safe investment guidance.

? Final Insights

– Rs. 21,000 will not give you financial freedom overnight.
– Real freedom comes from long-term, smart investing.
– Avoid risky AI trading or fake wealth creation systems.
– Protect your money by asking the right questions.
– Work with experts who are SEBI-registered and hold CFP.
– Keep your goals realistic and stay committed.
– Greed often causes losses, patience brings true wealth.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
Hi , I am 37 year old with in-hand salary of 90k, I have home loan with monthly installment of 25k. Lic -1 lakh annually RD -3000 monthly SSY for daughter 1500 monthly. What else should I do.. My monthly expense is around 35k
Ans: You are 37 with in-hand salary of Rs 90,000 per month. You repay Rs 25,000 EMI for your home loan. You invest in LIC of Rs 1 lakh annually. You also invest Rs 3,000 monthly in RD and Rs 1,500 monthly in SSY for your daughter. Your monthly expenses are around Rs 35,000.

You are doing well in structured savings. Let’s plan further with a clear, goal-oriented and complete approach.

? Your Current Expense, Saving & Investment Overview

– In?hand salary: Rs 90,000 monthly
– Home loan EMI: Rs 25,000 monthly
– Monthly expenses: Rs 35,000
– Monthly RD: Rs 3,000
– SSY for daughter: Rs 1,500
– LIC premium: Rs 1 lakh annually (~Rs 8,300 monthly)

Your monthly outflows:

EMI + expense + RD + SSY + LIC premium = Rs 72,800

This leaves around Rs 17,200 for additional saving or investments. That is good base to build on.

? Emergency Fund Creation

– You currently don’t mention any emergency fund
– You must build at least 6 months of expenses
– Expenses include EMI, monthly expense and minor running costs
– That totals to around Rs 3–4 lakh
– Keep this in FD or liquid mutual fund in regular plan
– Don’t touch this money for other uses
– Emergency fund prevents taking unwanted debt later

? Insurance Health and Life Cover

– You have an LIC policy; check its type
– If it is traditional or endowment, it gives small cover
– Life cover must be at least 10–12 times yearly income
– Term insurance is cheaper and gives high cover
– Health insurance must cover family including wife and daughter
– Choose a good floater policy for all
– If current health cover is employer-only, buy separate family health plan

? Rating the LIC Policy

– You pay Rs 1 lakh annually in LIC
– But endowment or money-back plans give returns close to 4–5%
– That is lower than inflation
– Returns are poor and money locks in for long
– Better to surrender and reinvest in mutual funds
– But check if agent benefit is lost upon surrender
– Taking step-up early will improve your financial growth

? Goal-Based vs Savings-Based Investment

– RD and SSY are safe instruments
– But they offer low return
– That’s OK for small goals like daughter's schooling
– Mutual funds offer better growth for long-term goals
– Especially equity funds through SIP
– Avoid index based ETFs for long goals
– Actively managed funds offer downside protection
– Regular plan via MFD ensures review and handholding

? Debt Management and Prepayment

– Home loan EMI is Rs 25,000
– That is healthy as long as EMI

...Read more

Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
Hi sir, I am a 35 year old working in a private company. I earn around 1.6 lakh a month. My savings are as follows: Mutual Funds -70 lakhs, FD - 18 lakhs ESOPs - 40 lakhs NPS - 11 lakhs EPF - 13 lakhs Direct stocks - 10 lakhs SGB - 6 lakhs Others - 5 lakhs My monthly investments are around 25k and I try to invest any surplus at the end of the month. I have no emi now. My wife is also working and makes around 80k. We have a 1 year old son. My wife invests around 5k every month but has good savings in gold e I am looking to purchase a flat in Bangalore to stay. How do I plan this? Our budget is around 1 cr.
Ans: You are 35, earning Rs 1.6 lakh monthly. You hold strong investments. You live with your wife and a 1-year-old son. Your wife also earns Rs 80,000 monthly. You plan to buy a flat in Bangalore worth around Rs 1 crore.

Let’s go step-by-step to plan this smartly.

? Current Asset Assessment

– You have Rs 70 lakh in mutual funds.
– Rs 18 lakh is parked in fixed deposits.
– You hold Rs 40 lakh worth of ESOPs.
– NPS is at Rs 11 lakh.
– EPF savings stand at Rs 13 lakh.
– You also have Rs 10 lakh in direct stocks.
– SGB worth Rs 6 lakh is part of your assets.
– Others total Rs 5 lakh.

Your total financial net worth is above Rs 1.7 crore. This is a solid base at age 35.

? Monthly Investment Pattern

– You invest Rs 25,000 regularly.
– Any month-end surplus is also invested.
– Your wife contributes Rs 5,000 monthly.
– She has good savings in gold as well.

You are disciplined. That’s excellent. You’re building long-term wealth quietly.

? Debt Status and Cash Flow

– You have no EMIs now.
– That gives you high monthly liquidity.
– Both you and your spouse are earning.

This gives flexibility in planning a property purchase. Your financial strength is good.

? Property Purchase Budgeting

– You want to buy a flat for self-use.
– Your budget is around Rs 1 crore.

That is a reasonable figure. With your current net worth, it is feasible.

But the question is how you should fund this home without disturbing long-term wealth.

Let’s explore that part.

? Using Your FD for Property

– You have Rs 18 lakh in fixed deposits.
– These are safe, but give low returns.
– You can use Rs 10–12 lakh from here.
– Keep Rs 6–8 lakh as liquidity buffer.

That takes care of part down payment. Use only partial FD. Don’t empty this corpus.

? Using Mutual Funds for Purchase

– You have Rs 70 lakh in mutual funds.
– This is your wealth creation engine.

Avoid touching mutual funds meant for long-term goals like retirement, child’s future or financial independence.

If some portion is parked for short-term, then use that only. Otherwise, avoid redeeming equity funds.

Equity mutual funds work best when untouched for 10+ years. Use only non-core funds if you must.

Also, remember taxation:
– Equity mutual fund LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.

Avoid redeeming large amounts from mutual funds in one shot. Split redemption across financial years if possible.

? Using ESOPs for Home Buying

– You hold Rs 40 lakh in ESOPs.
– ESOPs are linked to your employer’s stock.
– That means they carry concentration risk.

You should gradually reduce ESOP exposure. Diversify into mutual funds.

You can consider selling some ESOPs to raise property funds. This is better than redeeming mutual funds.

But don’t rush. Check for tax impact. Coordinate selling with a CFP or MFD to reduce tax load.

Also, check if ESOPs are vested, liquid and tradable easily.

Use part of this for home purchase. Retain some for future value gain.

? Using SGB, EPF, NPS, Stocks

– Don’t redeem SGB now. Gold works as a hedge.
– EPF and NPS are for retirement. Don’t touch these.
– Direct stocks are only Rs 10 lakh. Avoid using them unless market is high.

Use only liquid and low-return assets for home buying. Never use long-term retirement assets.

? Ideal Funding Strategy

Let’s break this into a simple plan:

– Use Rs 10–12 lakh from FD.
– Use Rs 10–15 lakh from ESOPs.
– Add Rs 3–5 lakh from any liquid mutual funds.
– Remaining Rs 70 lakh can be home loan.

You get tax benefits on home loan interest and principal. You also maintain investments.

You can prepay loan slowly using bonuses or surpluses later.

? Monthly Affordability of EMI

– With Rs 1.6 lakh income and no EMI,
– You can easily handle Rs 35,000 to Rs 45,000 EMI.
– This is less than 30% of your income.

Even if your wife’s income is not counted, your EMI comfort is high.

So home loan is manageable and strategic.

? Emergency Fund Position

– Keep at least Rs 8–10 lakh as emergency fund.
– Use FD or liquid mutual funds for this.
– Never put emergency fund into real estate.

Emergency money protects you from job loss, medical shock or market correction.

Don’t weaken this for down payment.

? Wife’s Financial Role

– Your wife earns Rs 80,000 monthly.
– She also saves and invests.

She can take part ownership of the flat. That improves loan eligibility and tax planning.

Let her contribute to EMI or home expenses. It increases joint accountability.

Also, ask her to slowly increase monthly investment from Rs 5,000 to Rs 10,000 or more.

She has potential to grow her own corpus.

? Child’s Future Planning

– Your son is 1 year old.
– Plan for his school, college, and higher education.

Use separate mutual fund SIPs tagged to these goals. Don’t mix with property planning.

Avoid touching those funds for flat or loan.

Long-term child goals should grow untouched for 15–20 years.

? Insurance Cover for Protection

– You are planning a big home investment.
– Make sure you have proper term insurance.
– Cover should be minimum 15–20 times your annual income.

If your income is Rs 20 lakh/year, get at least Rs 3–4 crore term cover.

Same for health insurance. Cover whole family adequately.

This ensures your family is protected in worst-case scenarios.

? Regular Plan vs Direct Plan Review

– You likely invest in a mix of plans.
– If some are direct plans, do check performance.

Direct plans give no advice or support. You carry all risk alone.

Regular plans through CFP or MFD give guidance, review, and correction support.

When doing large decisions like property purchase, advice from a CFP-backed MFD becomes very useful.

So keep major goals aligned with regular plan route.

? Real Estate Is Not an Investment

– You are buying a flat to stay. That is fine.
– But don’t treat real estate as an investment.

Real estate has hidden costs. There’s low liquidity. Long holding periods. Legal risks.

Also, returns are low after factoring taxes, interest, and maintenance.

So don’t add more property for investment.

Focus instead on growing mutual fund corpus via SIP.

? Finally

– Your financial base is strong.
– Buying your own home is possible now.
– Use fixed deposits and ESOPs wisely.
– Take a home loan for the rest.
– Don’t touch long-term assets like EPF, NPS or core mutual funds.
– Keep emergency fund untouched.
– Plan EMIs carefully. Prepay slowly.
– Protect with insurance.
– Keep growing mutual fund SIPs.
– Don’t depend on real estate for wealth creation.
– Review your financial plan each year with a CFP.
– Avoid direct plans if you need support or review.
– Guide your wife to increase monthly investment.
– Start dedicated SIPs for child’s education and future.

This is how you buy a house and continue building wealth.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
I have 20,00,000 in my NRE bank account in one bank and 47,00,000 in another. I am a NRI but now my visa is cancelled. I am 65 years old and I want to invest my money wisely to meet my expenses. Kindly suggest me a systematic monthly income plan.
Ans: You are 65 years old. Your visa is cancelled. You now need a steady income. You also have Rs. 67 lakhs in NRE bank accounts. Your focus should now be on safety, steady income, and tax efficiency. Let’s assess your situation and build a 360-degree monthly income plan.

? Understand Your Current Status

– You are now a resident Indian after visa cancellation.
– NRE accounts need to be re-designated.
– Convert them to resident accounts or RFC accounts, as applicable.
– Reclassification is necessary to follow RBI rules.
– Keep documentation ready for the bank to process this.
– Your future investments must follow resident norms.

? Define the Purpose of This Corpus

– You want monthly income from your Rs. 67 lakhs.
– Capital safety is a priority at your age.
– Income should beat inflation at least partially.
– Some part can be left for emergencies or rising medical costs.

? Immediate Steps to Take Before Investing

– Keep Rs. 3 to 5 lakhs in a resident savings account.
– This will act as an emergency buffer.
– Update KYC with Indian address and resident status.
– Ask your bank for Form 15H submission if your income is low.
– This will help avoid TDS deduction.

? Asset Allocation Strategy for Income Generation

– You need a balanced approach, not high-risk products.
– Divide the corpus across low-risk, medium-risk, and growth-oriented options.
– Suggested allocation can be:

Rs. 15 lakhs in Senior Citizen Savings Scheme (SCSS)

Rs. 15 lakhs in Post Office Monthly Income Scheme (POMIS)

Rs. 25 lakhs in Hybrid Mutual Funds (via SWP)

Rs. 7 lakhs in Corporate Bonds or AAA-rated Company FDs

Rs. 5 lakhs in Savings for emergency and liquidity

? Senior Citizen Savings Scheme (SCSS)

– Interest around 8.2% per annum, paid quarterly.
– Lock-in of 5 years, extendable by 3 years.
– Max limit per individual is Rs. 30 lakhs.
– You may split across your and spouse’s name if applicable.
– Very safe as it's backed by Government.
– Taxable interest, but TDS can be avoided with Form 15H.

? Post Office Monthly Income Scheme (POMIS)

– Interest is paid monthly, around 7.4% currently.
– Lock-in period is 5 years.
– Max limit is Rs. 9 lakhs for single, Rs. 15 lakhs jointly.
– You can split across self and spouse again if needed.
– It is also very low risk.
– Good for steady cash flow every month.

? Hybrid Mutual Funds for Systematic Withdrawal

– Use conservative or balanced hybrid mutual funds.
– These are a mix of equity and debt, with moderate risk.
– You can invest and start SWP (Systematic Withdrawal Plan).
– SWP can give fixed monthly income.
– Example: Rs. 20 lakhs at 6% annual withdrawal gives Rs. 10,000/month.
– Potential for capital appreciation also exists.
– Best to invest in regular plans through a Mutual Fund Distributor (MFD).
– An MFD with CFP credential offers continuous support.

? Why Regular Plans Over Direct Plans

– Direct plans need self-monitoring and decision-making.
– Most investors miss proper rebalancing or exit timing.
– Regular plans give access to a Certified Financial Planner’s expertise.
– They do portfolio reviews, rebalancing, tax advice, goal alignment.
– Their ongoing support helps in market fluctuations and changes in needs.
– Long-term value from advice is much higher than expense ratio difference.

? Disadvantages of Index Funds in Your Case

– Index funds are fully equity-linked, highly volatile.
– They lack downside protection in market falls.
– No fund manager to act during market corrections.
– They offer no stability which is needed at your age.
– Active funds adjust to market cycles, sectors, and themes.
– They suit better for long-term growth goals, not retirement income.

? Corporate FDs or Bonds for Additional Income

– AAA-rated NBFC or PSU bonds are safer than bank FDs.
– They offer interest between 7% to 8.25%.
– Choose companies with good credit ratings only.
– Interest is taxable as per your slab.
– Use these for staggered maturity over 1–3 years.
– Don't put more than Rs. 2–3 lakhs in one issuer.

? Tax Efficiency for Monthly Withdrawals

– Interest from SCSS, POMIS, FDs is taxable.
– Use Form 15H if your total income is below taxable limit.
– Mutual fund SWP is more tax-efficient.
– LTCG on equity funds taxed only if above Rs. 1.25 lakh at 12.5%.
– STCG on equity funds is 20%.
– Debt fund withdrawals taxed as per your income slab.

? Reinvestment Strategy for Growth and Longevity

– Keep a part invested for long-term appreciation.
– Rs. 5–10 lakhs in equity-oriented hybrid mutual funds is good.
– These are not for income but to beat long-term inflation.
– Reinvest SWP surplus or excess cash periodically.
– This helps in reducing capital depletion.

? Review Insurance Policies (if any)

– If you hold old LIC endowment or ULIPs, evaluate them.
– Return from such policies is low, around 4% to 5%.
– Surrender them only after reviewing surrender value.
– Reinvest in mutual funds with MFD+CFP support.
– Avoid insurance-based products for income or investment now.

? Avoid Risky or Locked-In Products

– Do not invest in annuities. They offer poor returns.
– Avoid PMS, ULIPs, and market-linked insurance policies.
– Avoid products with high commissions and long lock-ins.
– Safety and access to money is very important now.

? How to Set Up the Monthly Income

– SCSS and POMIS will give quarterly or monthly interest.
– SWP from hybrid funds gives fixed monthly withdrawal.
– Corporate FDs can give quarterly or half-yearly payouts.
– Align different products to pay in staggered intervals.
– This ensures income comes throughout the month.

? Maintain Liquidity and Rebalance Periodically

– Keep Rs. 3–5 lakhs liquid at all times.
– Review investments every 6 months.
– Rebalance if market conditions change.
– Involve an MFD with CFP credential for regular support.
– Avoid taking fresh risk as income is the main goal now.

? Your Ideal Investment Structure (Example Only)

– SCSS: Rs. 15 lakhs
– POMIS: Rs. 15 lakhs
– Hybrid Mutual Funds: Rs. 25 lakhs (with SWP of Rs. 12K–15K/month)
– Corporate FDs/Bonds: Rs. 7 lakhs
– Emergency Fund: Rs. 5 lakhs

This portfolio gives Rs. 35,000–40,000/month approx.
Income will depend on fund SWP settings and interest payouts.

? Finally

– Your focus should be steady income with peace of mind.
– Avoid high-return temptations or risky products.
– Choose products with low risk and proven track record.
– Take help of a certified financial planner regularly.
– Rebalance when needed and stay invested wisely.
– This will help you stay independent, stress-free, and financially secure.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |9254 Answers  |Ask -

Career Counsellor - Answered on Jul 22, 2025

Career
Hello Sir, My son is in XII standard request recommend best engineering colleges/ institutes in Lucknow. He wants to excel in CS& AI
Ans: Rajesh Sir, Lucknow hosts several reputable institutes offering specialized B.Tech in Computer Science and Engineering with Artificial Intelligence, each excelling in accreditation, faculty expertise, infrastructure, placement performance, and student support. Indian Institute of Information Technology, Lucknow provides a rigorous JEE Main-based admission through JoSAA, requiring 10+2 PCM and qualifying JEE Main ranks, and sustains cutting-edge AI, ML, and data-science labs. Institute of Engineering and Technology under Dr. A.P.J. Abdul Kalam Technical University admits via UPTAC counselling of JEE Main ranks with 10+2 PCM eligibility, offering state-of-the-art computing facilities and 80%+ placement rates over three years. Bansal Institute of Engineering and Technology’s private AI program selects candidates through JEE Main or UPSEE with PCM at 10+2, features specialized AI labs, and reports consistent 70–80% placements. Amity University Lucknow admits via its entrance test or JEE Main, mandates 10+2 PCM, and offers modern AI curricula with global collaborations and 75% placement consistency. Ambalika Institute of Management and Technology enrolls through UPSEE with PCM requirements, maintains NAAC accreditation, dedicated AI-ML centers, and 65–75% recruitment in tech firms.

Recommendation: Considering proximity, AI focus, and placement strength, IIIT Lucknow stands out for its national-importance status and top-tier AI labs, IET Lucknow offers strong government backing, Bansal Institute provides robust private-sector industry ties, Amity Lucknow excels in global partnerships, and Ambalika Institute ensures solid foundational AI-ML training aligned with industry needs. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

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Ravi

Ravi Mittal  |621 Answers  |Ask -

Dating, Relationships Expert - Answered on Jul 22, 2025

Asked by Anonymous - Jul 21, 2025Hindi
Relationship
I am in a messy situation. I don't know how to express. I am in love with a boy who I know for the past 6 years. We are about to get married but my parents recently found out through a distant relative that he has been arrested on two occasions for petty fraud and stealing from two different places in our home state. It is funny how he never mentioned visiting any of these places in these years. When we began dating I admit we were clear not to bring up our past, but I never expected him to have a police case against him. He has never lied or cheated on me yet. He is hard working and takes care of his family back home. Should I check with him? Or should I ignore because it is in the past? If I have to start a life with him, I feel I must know everything about his past. Do you think it is right to ask about his past?
Ans: Dear Anonymous,
Even if it’s in the past, going to jail for fraud and stealing is no small thing. He might have been scared or ashamed of telling the truth, but you still deserved to know it so that you have the chance to decide whether or not to continue the relationship. I recommend you have a conversation with him about the same or else it might keep bothering you for the rest of your life. The matter would’ve been less serious if it was still limited to one time; it happened twice. It can mean that he is inclined towards making wrong choices.

I don’t want you to assume the worst; it could’ve been something insignificant as well. But it’s still better to have a clear knowledge of the event before you make a lifelong commitment to him. You deserve to know the truth and make an informed decision.

Keep me posted and please reach out if you need more help.

Best Wishes.

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Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Money
Hi, Would like to know if I can accumulate 1cr with my Mutual Funds portfolio and in how many years. Parag Parikh Flexi Cap(direct) - SIP- 3000/- Bandhan Small Cap(direct) - SIP - 2000/- SBI Small Cap(direct) - SIP - 3000/- Edelweiss Mid Cap(direct) - SIP - 2000/- Invesco Small Cap(regular) - SIP - 3000/- WhiteOak Multi Cap(regular) - lumpsum - 2 lakh {Adding around 25k every 6 months depending on savings} I am also putting around 4000/- to 5000/- every 30th or 31st of the month depending on my month end savings in Parag, Bandhan, SBI, Edelweiss funds. Moreover, I had invested in Quant Mid cap(direct) fund with 60,000/- just in case if I need some money in future so will use this fund only w/o touching any of the above funds. Started my investment from last 6-8 months only and I am 33 years old. Apart from this I am also putting in PPF- 1.5lakhs, NPS- 50k, HDFC ULIP(5th and last year)- 1.35 lakhs yearly. Please suggest me with any change required in above portfolio as I am thinking to add 1 gold ETF fund as well. Also, not expecting 'Consult a Financial Advisor' messages as I have some regular funds as well from my Fund broker. Please suggest something solid.
Ans: You’re 33. You’ve started SIPs 6–8 months ago. You invest in multiple mutual funds. You also invest in PPF, NPS and a ULIP. You’ve added lumpsum too. You wish to create Rs 1 crore. You also wish to know how many years it can take.

Let’s do a full 360-degree assessment.

? Current Investment Behaviour

– You have 5 SIPs in equity mutual funds.
– Amount is around Rs 15,000 monthly.
– You also add Rs 4,000–5,000 more at month-end.
– Every 6 months, you invest Rs 25,000 lump sum.
– In total, around Rs 2.5–2.7 lakh/year in mutual funds.
– You’ve also added Rs 2 lakh in one regular multicap fund.
– Rs 60,000 in a midcap fund as buffer for future need.

You’re consistent and focused. That’s a great start.

? Good Habits You’ve Already Built

– You are disciplined with SIPs.
– You try to save and invest whatever is left monthly.
– You use mix of small, mid, flexi and multi-cap funds.
– You plan to keep some money aside for emergencies.
– You don’t touch long-term funds.
– You’re thinking ahead already.

This is a solid habit at 33. Keep it going.

? Investment Tools Beyond Mutual Funds

– You invest Rs 1.5 lakh yearly in PPF.
– Rs 50,000 goes to NPS.
– You also pay Rs 1.35 lakh/year into a ULIP.

These are long-term assets. They help in retirement and tax-saving. But let’s analyse deeper.

? Review of ULIP Investment

– ULIPs combine insurance and investment.
– You are in 5th and final year.
– These have high charges in early years.
– Returns are less than mutual funds.
– ULIP is also not flexible like SIPs.
– It is not ideal for long-term wealth.

Now that 5 years are over, exit ULIP after lock-in. Shift that money into mutual funds. That will give better compounding.

? Small Cap Fund Allocation Review

– You have 3 small cap funds in your portfolio.
– Monthly investment is around Rs 8,000.
– This is over 50% of your SIP value.

This is very high for small cap exposure. Small caps are risky. They are volatile. Not for short-term. Not for over-allocation.

Reduce small cap to 20–25% of your total mutual fund SIP. Shift extra amount to large or flexi-cap categories. This will balance risk.

? Direct Plans vs Regular Plans

– You use both direct and regular plans.
– Many SIPs are in direct mode.
– Only 1–2 funds are through MFD.

Direct funds lack handholding. No guidance during market falls. No review support.

Regular funds through CFP or MFD offer ongoing advice. Fund switch, goal tracking and rebalancing is easier. Stay connected with your MFD for right direction.

For long-term goals like Rs 1 crore, regular plan with personalised help is better.

? Adding Gold ETF: A Good Idea?

– You plan to add gold ETF.
– Gold helps diversify your portfolio.
– But ETFs are index-tracking tools.
– They don’t suit every investor.

Gold ETF lacks active management. It needs demat and timing. Gold also does not give regular income. It shines only during global fear or inflation.

If you want gold for balance, consider gold mutual fund (regular plan). You can also invest in digital gold over time, but keep exposure below 10% of total portfolio.

Avoid adding gold just for trend-following.

? Importance of Goal-based Investment

– You want to create Rs 1 crore corpus.
– That’s a great milestone.
– But time-frame is not clearly mentioned.
– You must fix a target year or age.

If you want Rs 1 crore in 12–15 years, current pace may be enough. But for 8–10 years, increase monthly SIP slowly.

Split this into a clear goal. Add a goal tag to your SIPs – like retirement, child’s future, home buying etc. It gives direction.

Without clear goals, SIPs become scattered. You lose clarity.

? Emergency Fund: Still Missing

– You said Rs 60,000 is kept in one fund as backup.
– That’s a good start.
– But not a complete emergency corpus.
– You should build at least Rs 3–5 lakh for emergencies.

Keep this in a mix of savings account and liquid fund (regular plan). Don’t keep it in equity mutual funds.

This gives safety and quick access. It protects long-term SIPs from being broken.

Emergency planning is part of solid wealth planning.

? Review of Mutual Fund Count

– You are holding 6+ mutual funds.
– 3 are small cap funds.
– Others are multi or midcap.

Having too many funds causes overlap. Reduces clarity. Gives no extra return.

You can reduce funds by merging similar ones. Choose one strong performer from each category.

1 flexi/multi cap
1 midcap
1 small cap
1 balanced advantage or hybrid fund

This setup gives full market coverage. Fewer funds are easy to monitor. Discuss fund switch with your MFD or CFP.

? SIP Growth and Step-up Strategy

– You invest around Rs 18,000 monthly now.
– Add Rs 25,000 every 6 months.
– This shows you can invest more with time.

Each year, increase SIP by 10% or more. Even Rs 2,000 hike yearly can speed up your goal.

Step-up strategy multiplies wealth without burden. It is very effective from age 33 to 45.

This also adjusts for inflation automatically.

? Role of PPF and NPS in Retirement

– PPF gives fixed returns, around 7–8%.
– It is good for stability.
– NPS gives equity exposure for long-term growth.

Both should continue. They work well with mutual funds.

Use mutual funds for aggressive growth. Use PPF and NPS for stable base. Together, they create a balanced retirement plan.

? Tax Implications You Should Know

– New rule: Equity mutual fund LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.
– PPF is fully tax-free.
– NPS has tax benefit under Section 80CCD.
– ULIP returns are taxable if premium exceeds Rs 2.5 lakh yearly.

Plan your redemptions to stay within tax limits. Keep equity fund withdrawal slow and phased after 10 years.

Take help from your MFD/CFP for tax-efficient planning.

? How Long to Reach Rs 1 Crore?

– With current SIP and savings, Rs 1 crore is possible.
– If you keep Rs 18,000/month SIP plus Rs 50,000 yearly top-up,
– You may reach Rs 1 crore in 13–15 years.

Faster growth is possible if you hike SIP every year. Early hike gives long compounding.

If you target 10 years, then SIP must go up to Rs 22,000–25,000 monthly. This is also possible with step-up.

Stay consistent and increase savings slowly. Compounding will do the rest.

? Why You Must Review Every Year

– Fund performance keeps changing.
– Some funds may lag.
– Risk level may change.
– New life goals may come.

Do yearly review with your MFD or CFP. Align investments with your goals.

Avoid chasing short-term returns. Stick with your structure. Long-term wins happen slowly.

? Final Insights

– You have a good investment base.
– ULIP is better closed after 5 years.
– Shift to mutual funds for better return.
– Reduce small cap exposure for safety.
– Limit fund count to 4–5 only.
– Build emergency fund in savings + liquid fund.
– Avoid gold ETF. It adds complexity.
– Add goals and track separately.
– Keep increasing SIP yearly.
– Use regular plans with support from CFP/MFD.
– Stay invested long-term.
– Do annual review every year.

Rs 1 crore is possible. So is more. You just need to stay patient and steady.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Money
I am 27 years old i buy LIC's New Jeevan Labh Plan Plan -936 With Commencement date:28/07/2022 With Instalment Premium: 45,027.00 Per Year and I have LIC's Jeevan Umang Plan (945) With Commencement Date:-28/07/2022 With Instalment Premium: 66386.00 Per Year . My monthly income is eighty thousand Than What should I do With LIC Policy can I Surrender it or Something else
Ans: You are 27 years old. Your income is Rs. 80,000 per month. You are paying Rs. 45,027 annually for LIC’s New Jeevan Labh (Plan 936). You are also paying Rs. 66,386 annually for LIC’s Jeevan Umang (Plan 945). Both started on 28/07/2022. Combined, you are paying Rs. 1,11,413 per year. That is around Rs. 9,284 per month.

Let’s assess this from all angles.

? Your Age and Financial Advantage

– You are just 27 years old now.
– You have long working life ahead.
– This is the best time to build wealth.
– Time is your biggest asset right now.
– Small changes now will give big results later.
– Your current income is good.
– Rs. 80,000 per month gives you high saving potential.
– You are on the right track to start financial planning early.

? What LIC Policies Really Do

– Jeevan Labh and Jeevan Umang are traditional LIC policies.
– These are investment plus insurance plans.
– They offer low life cover.
– They offer very low returns.
– Returns are around 4% to 5% only.
– This is even lower than inflation.
– So your money loses value over time.
– You pay regular premium but get poor growth.
– These plans are not good for wealth creation.

? Problems With Investment-Cum-Insurance Plans

– These plans mix two different goals.
– One is protection, other is wealth building.
– But neither goal is fully achieved.
– Insurance cover is too low for your need.
– Investment return is too small for your future.
– Your money gets locked for long term.
– There is very low liquidity in such plans.
– You can’t withdraw when you need.
– If you miss premium, policy may lapse.
– It becomes a burden without good benefit.

? Better Way to Do Insurance

– Insurance is only for protection.
– For that, buy a pure term insurance plan.
– It is cheaper and gives high life cover.
– Premium will be very low at your age.
– You can get Rs. 1 crore cover at low cost.
– That will protect your family fully.
– Don’t use LIC traditional plans for insurance needs.

? Better Way to Do Investment

– Investment is for growth of money.
– Use mutual funds for this purpose.
– Start SIPs in actively managed mutual funds.
– These funds grow with market and give better returns.
– Index funds are not good for you.
– Index funds only copy the market blindly.
– They fall badly when market crashes.
– They don’t protect your money in tough times.
– Actively managed funds adjust risk and return.
– They are better for a long-term investor like you.

? Disadvantages of Continuing LIC Plans

– You will pay high premiums every year.
– Your returns will stay very low.
– You will not be able to stop in middle.
– You lose flexibility with your money.
– In future, you may need that money.
– But these plans lock it for 15–20 years.
– If you surrender later, you get less than what you paid.
– So, more delay will lead to more loss.

? Can You Surrender Now?

– Yes, you can surrender the plans now.
– But you have completed only 2 years.
– So surrender value will be low now.
– Still, it is better to stop early than regret later.
– You can consider paid-up option also.
– But that also gives poor return.
– The best step is to stop both policies.
– Take the loss now and secure your future better.
– Redeploy that money into mutual funds.

? What You Should Do Now

– First, buy a term insurance plan.
– This gives full life protection at low cost.
– Second, stop both LIC policies immediately.
– Don’t renew premium this July 2025.
– Third, start SIPs of Rs. 9,000 monthly in mutual funds.
– Choose 2 or 3 actively managed mutual funds.
– Use different types like large-cap, flexi-cap, hybrid.
– Start with regular plans through a Certified Financial Planner.
– Don’t go with direct mutual fund apps.

? Why Regular Funds Through CFP Are Better

– Direct funds offer no support.
– No one tells you when to change funds.
– During market fall, you may panic and stop SIPs.
– That harms your goals and confidence.
– Regular funds with CFP and MFD guidance give direction.
– CFP gives full financial planning service.
– They help in goal setting, rebalancing and exit strategy.
– Regular mode is more suitable for working individuals.
– Focus on value, not just cost.

? What Happens If You Delay Action

– You will continue paying Rs. 1.1 lakh yearly.
– For 20 years, this is over Rs. 22 lakh.
– You may get Rs. 30–32 lakh after 25 years.
– But value of money will reduce due to inflation.
– You are locking your potential wealth for poor gain.
– If you act now, your money will grow better.
– Mutual funds can build Rs. 1 crore in 25 years.
– But traditional LIC plans can’t reach there.

? Tax Benefit is Not Enough Reason

– LIC policies offer 80C benefit.
– But that’s not enough to keep bad investment.
– ELSS mutual fund also gives same benefit.
– And gives higher returns than LIC plans.
– Tax-saving should not be your main reason to invest.
– Return, liquidity and flexibility are more important.

? Protecting Your Financial Future

– You are young and earning well.
– This is the best time to invest right.
– Avoid emotional attachment to LIC policies.
– Take informed decision with full calculation.
– Focus on long-term wealth creation.
– Your financial freedom depends on your decisions today.
– Choose flexible, high-growth investment options.
– Stay protected with proper term insurance.

? Role of a Certified Financial Planner

– A CFP helps build your financial foundation.
– They create a plan based on your life goals.
– They track your progress and help in rebalancing.
– They also help in choosing right SIPs and insurance.
– A CFP ensures you don’t make random decisions.
– Instead of following crowd, you follow a structured path.
– Your money works better with CFP guidance.

? Finally

– You are still early in your working life.
– But LIC policies are not suitable for you.
– They give low return, low cover, and low flexibility.
– You should stop both plans now.
– Buy a good term insurance policy.
– Start mutual fund SIPs in regular plan through CFP.
– Plan your future with full awareness and proper support.
– Take this small step today.
– It will give you peace and growth for many years ahead.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |9816 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2025

Asked by Anonymous - Jun 29, 2025Hindi
Money
I am 35 year old, my family net income is 2 lakhs, have 3 residential old flats , all three are on loan the loan rate is 6.5 percent as they are subsidized and also completely own a plot....the combined circle rate of above properties is 2.5Cr. The combined outstandin loan amount for 3 flats is 1.3Cr. Also have 10 lakh personal loan with 8.5 percent and another 20 lakh with 10.5 percent for duration of 7 years and another loan of 15 lakhs with 9.5 percent for period of 15 years. The income from flats is 25k. Net deductions is around 1.5 lakh and we are left with 50 plus 25 rent, total 75k..in which expenses are 40k and savings are only 35k. NPS contribution on family is around 50 lakhs both being psu employees with 35k contribution to NPS monthly. Am i taking too much stress having high debt to income ratio...or am i on right path...?
Ans: You are 35 years old. Your total family income is Rs. 2 lakh per month. You own 3 old flats (on loan) and one plot (fully owned). Your loan burden is high, with both home and personal loans.

You’re contributing Rs. 35,000 monthly to NPS. You are left with Rs. 75,000 after EMI and deductions. Expenses are Rs. 40,000 and savings Rs. 35,000.

Let us review your situation with care and give complete clarity.

? Family Income and Monthly Flow

– Rs. 2 lakh income is stable and strong.
– You are PSU employees. So job security is high.
– Rent income is Rs. 25,000 per month.
– After EMIs and deductions, you keep Rs. 75,000 monthly.
– This includes the rent inflow.
– Your lifestyle expenses are Rs. 40,000.
– That leaves Rs. 35,000 monthly for savings.
– You are handling things, but pressure is rising.

? Loan Portfolio Evaluation

– Three home loans total to Rs. 1.3 crore.
– Personal loans are another Rs. 45 lakh in total.
– You have Rs. 10 lakh loan at 8.5% interest.
– Another Rs. 20 lakh loan at 10.5% for 7 years.
– One more Rs. 15 lakh loan at 9.5% for 15 years.
– These personal loans carry high interest.
– Your debt to income ratio is very tight.
– Most of your income goes in EMI and NPS.
– High debt can create stress later.

? Real Estate Exposure is Very High

– You have 3 flats already on loan.
– You also own a plot completely.
– Combined circle rate of all is Rs. 2.5 crore.
– But this value is not liquid.
– Real estate gives poor cash flow.
– You earn only Rs. 25,000 rent from three flats.
– That is very low return for such high asset base.
– Flats need maintenance, taxes, and tenant risk.
– Real estate is not suitable for high growth.
– It is also difficult to sell fast in need.
– Avoid adding more property now.
– You are over-exposed already.

? Personal Loans are Draining Your Cash

– Personal loans are expensive.
– Their interest is higher than home loans.
– Their tax benefit is also low.
– First priority should be to reduce these loans.
– Begin with the Rs. 10 lakh loan at 8.5%.
– After that, target Rs. 20 lakh loan at 10.5%.
– Don’t stretch repayment over long term.
– Use any lump sum or annual bonus to reduce this.

? Emergency Reserve is Missing

– No mention of emergency fund in your statement.
– You must have at least Rs. 3–4 lakh in liquid assets.
– This helps during sudden medical, job, or repair issues.
– Emergency fund should be in FD or liquid mutual fund.
– Without this, you may borrow again.
– Create this reserve before making new investments.

? NPS Corpus and Contribution

– Your family NPS corpus is already Rs. 50 lakh.
– Monthly contribution is Rs. 35,000.
– This is good for long-term retirement.
– But NPS is locked till age 60.
– It has very low liquidity.
– You cannot use NPS for education or loan repayment.
– So don’t increase NPS beyond current level.
– Focus now on flexible investments.
– SIPs in mutual funds are better for mid-term goals.

? Real Estate: Capital is Locked

– The Rs. 2.5 crore property value is not usable now.
– You cannot access that money fast.
– Also, rent returns are very low.
– Property resale takes long time.
– Price may not match the circle rate.
– So, don’t count property as investment growth tool.
– Real estate is not productive asset for your case.

? Financial Stress Indicators

– High EMI and low surplus shows financial strain.
– Rs. 1.5 lakh deduction is very high from Rs. 2 lakh income.
– Only Rs. 35,000 is left for saving.
– This is just 17.5% of income.
– Ideally, savings should be above 30–35%.
– Your income is strong, but debt is heavy.
– You are able to manage now.
– But one emergency can shake your plan.

? Steps to Reduce Financial Pressure

– Stop new property purchases immediately.
– Focus only on clearing personal loans first.
– Sell any underused flat if needed.
– Use that to reduce debt sharply.
– A one-time flat sale can free monthly EMI.
– This improves cash flow immediately.
– Also pause all non-essential expenses.
– Control lifestyle for 12–18 months strictly.

? Mutual Funds Can Offer Liquidity and Growth

– You should start monthly SIPs now.
– Actively managed mutual funds are good for growth.
– Index funds only copy the market.
– They offer no risk control in fall.
– Active funds are handled by skilled fund managers.
– They protect downside and capture upside.
– Use regular plans via Certified Financial Planner.
– Direct mutual funds give no emotional support.
– CFP and MFD will guide properly.

? Insurance Planning Must Be Reviewed

– No details given about life or health insurance.
– You must have pure term insurance policy.
– It should be 10–12 times your yearly income.
– Avoid ULIP and investment-insurance mixes.
– Also ensure family has health insurance cover.
– Dependents should not suffer due to loan pressure.
– Insurance gives mental peace during hard times.

? Children’s Future Needs Separate Planning

– If you have kids, education planning is must.
– Don’t use property for education.
– Start SIPs separately for their future.
– Keep it untouched till goal is near.
– Don’t delay children’s SIPs to clear loan.
– Balance both together with help of CFP.

? Debt Reduction Strategy

– Prioritise repayment based on interest rate.
– Begin with highest interest loan.
– Don’t break NPS or PF for loan.
– Use annual income growth to repay faster.
– Explore switching personal loan to lower interest if possible.
– Avoid balance transfer charges or hidden fees.
– Don’t take fresh loans for old loan closure.

? Tax Planning Should Be Aligned

– NPS already covers Section 80C and 80CCD.
– Avoid putting extra money into tax-saving FDs.
– Don’t use insurance for tax saving.
– Use ELSS only through regular route.
– Review tax impact on rental income also.
– CFP will structure this with clarity.

? Real Estate Exit Options

– If one flat is old and unused, consider selling.
– Don’t wait for market peak.
– Selling one flat and closing personal loans is better.
– This improves cash flow every month.
– It also increases peace of mind.
– Discuss exit planning with a CFP.

? Review and Monitor Monthly

– Every month, check EMI and saving ratio.
– Track how much loan is reducing.
– Maintain one personal cash flow sheet.
– This builds discipline and awareness.
– Meet a Certified Financial Planner every 6 months.

? Avoid New Commitments or Expenses

– Don’t upgrade car or home now.
– Don’t plan international travel soon.
– Avoid luxury or social pressure expenses.
– Focus only on stabilising your cash flow.
– In future, you will have flexibility.
– First, reduce debt and build financial strength.

? Mental and Emotional Well-Being

– High loans can impact mental peace.
– You are working hard to manage it.
– A structured plan gives relief and clarity.
– Don’t compare with others.
– Your assets are high but locked.
– Shift focus to cash flow and liquidity now.

? Finally

– Your income is strong. But loan load is very high.
– You are managing, but not freely.
– Your property assets are over-weighted.
– Rent income is not enough for value they hold.
– Sell one property if needed and reduce loan.
– Reduce personal loans first. Then focus on wealth.
– Start SIPs in mutual funds for liquidity and growth.
– Avoid real estate as investment.
– Work closely with a Certified Financial Planner.
– Recheck every 6 months for progress.
– Your peace of mind is also part of your financial health.

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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