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Maxim

Maxim Emmanuel  | Answer  |Ask -

Soft Skills Trainer - Answered on Mar 11, 2024

Maxim Emmanuel is the marketing director of Maxwill Zeus Expositions.
An alumnus of the Xavier Institute of Management and Research, Mumbai, Maxim has over 30 years of experience in training young professionals and corporate organisations on how to improve soft skills and build interpersonal relationships through effective communication.
He also works with students and job aspirants offering career guidance, preparing them for job interviews and group discussions and teaching them how to make effective presentations.... more
Priya Question by Priya on Mar 10, 2024Hindi
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Career

What is the scope of German language making a career

Ans: German language is widely spoken in Europe and there are big manufacturing companies in India like Bosch,Daimler Benz... So the scope is huge, Go ahead the options are aplenty!
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Janak

Janak Patel  |12 Answers  |Ask -

MF, PF Expert - Answered on Jan 23, 2025

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Money
I am 50 yrs old an IT consultant doing own business, i invested in mf via sip 1.nippon smallcap 10k/month 2. Ppfas 7500/month 3.quant active fund 8500/month 4. Pgim lumpsum 60k Please advise for long term benefit like my son btech education fees i am started mf sip past 1.5 years, my son going to join college this year can i withdraw all my money from mf. Due to bearish movement of market last few month my overall percentage lower very much 26% to 19% . Pls advice
Ans: Hi Rajan,

Good to know you planned investment for your son's education. There a few things to keep in mind when planning investment which are market linked.
The time horizon is very important to reap the benefit from the market linked investments. In your case your son is going to join college this year and than means you will need this money for his fees. Along with this the fund selection based on the risk profile.
There have been 2 things that seem to be of concern at this time - 1. Markets are bearish currently and 2. Not enough time to stay invested. Also the funds you have selected are of very high risk category and hence you may see higher impact in the fund value compare to the market.
If you still see a return of 19% as mentioned, I would recommend you to withdraw and for whatever time you have the money before utilizing it, do consider a low risk option of investment like Bank FDs.
This will provide safety and liquidity of your money when required.
All the best to your son for his future.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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Prof Suvasish

Prof Suvasish Mukhopadhyay  |307 Answers  |Ask -

Career Counsellor - Answered on Jan 23, 2025

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Dear sir , I am writing to express some concerns and seek your advice regarding my son who is currently working in the USA after completing his Master's degree. While I am proud of his achievements, I find myself feeling a bit confused about my role as a father during this phase of his life. As he focuses on his career and plans for the future, I wonder if I should expect some support from him for our family's needs, especially considering the financial burden I have undertaken for his education, which amounts to about 1 crore. Additionally, I have responsibilities towards my 90+ year-old mother and my other son, who is also in need of educational support. My son seems to be making all his life decisions independently, including matters relating to his future marriage, without seeking our input. This leaves me feeling sidelined in his life choices. Can you please share your thoughts on how I should navigate this situation? Your guidance would be invaluable as I try to understand my place and expectations in this new dynamic. Thank you for your consideration. I look forward to your response.
Ans: First let me tell you, I am always with you. In this platform I can't share my phone no or email ID. But I will give you the ultimate solution. As a father you have done your full duty and I understand your situation. 90+ mother is there and along with her another son's complete responsibility is there. Regarding marriage and other things let him take his own decision, no issue. But during the critical hours he has to support you per month and the minimum amount what he should send is 1200 US Dollar ( nearly one lakh rupees). Straight away put this condition. This discaring attitude generates out of pampering and for 99% sons their typical Indian mothers are responsible. Put your condition with a tough tone. Be good for good and bad for bad. Now behave like a manager, not like a father. I don't know his branch. If he is in IT then he must be earning 9000-10000 US Dollar per month. So let him send 1200 USD per month. If he doesn't listen to you then for time being keep distance with him. You are the father, so you must have the personality so that he listens to you. Use this advice and follow me and in future please contact me whenever you face some difficulties. Regards. Professor.

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Ramalingam

Ramalingam Kalirajan  |7619 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 23, 2025

Asked by Anonymous - Jan 17, 2025Hindi
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I have joined sbi smart retire plus fund. Paying 6 lakh for 5 years. What should i be doing with the matured amount. I will be 60 years when it gets matured. What do you meanby annuity?
Ans: You are investing Rs. 6 lakh annually for 5 years into the SBI Smart Retire Plus Fund. Upon maturity, you will be 60 years old and may need this corpus to create a stable income during retirement. Let's explore the right approach for managing the maturity proceeds effectively.

Understanding the Investment Objective
Purpose of the Fund

SBI Smart Retire Plus aims to provide a retirement corpus.
You can use this to generate regular income after retirement.
Maturity Corpus

Your total contribution will be Rs. 30 lakh.
Depending on returns, your corpus may grow significantly over time.
Retirement Stage

At age 60, preserving and utilising this amount efficiently is essential.
Post-Maturity Strategy
1. Assess Your Retirement Needs
Monthly Income Requirement

Calculate the income you need post-retirement.
Include living expenses, healthcare costs, and leisure activities.
Existing Retirement Corpus

Consider other savings or investments you may already have.
Evaluate if the matured amount alone can meet your needs.
Emergency Fund Setup

Set aside 6-12 months of expenses in a liquid fund.
This ensures you are financially prepared for unforeseen expenses.
2. Avoid Investing in Annuities
Understanding Annuity Plans

An annuity converts your corpus into a guaranteed income.
Once invested, you lose control over the capital.
Disadvantages of Annuities

Returns are usually low, often below inflation rates.
They lack flexibility and tax efficiency.
Better Alternatives

Consider other options like mutual funds or systematic withdrawal plans.
These provide higher returns and greater control over your funds.
3. Diversify Across Investment Options
A. Equity-Oriented Mutual Funds
Higher Growth Potential

Allocate 40-50% of the corpus to equity mutual funds.
These can generate inflation-adjusted growth over time.
Balanced Portfolio

Include a mix of large-cap, mid-cap, and hybrid funds.
This diversification reduces risk while ensuring growth.
B. Debt Mutual Funds
Stable Returns

Invest 30-40% of the corpus in high-quality debt funds.
These provide regular income with lower market risk.
Tax Efficiency

Gains from debt funds are taxed as per your income slab.
Withdraw amounts based on your tax planning needs.
C. Hybrid Funds
Combination of Equity and Debt
Allocate 10-20% to hybrid funds for a balanced approach.
They ensure stability without compromising growth.
4. Generate Passive Income
Systematic Withdrawal Plan (SWP)

Use SWP from mutual funds to withdraw a fixed monthly income.
This keeps the remaining corpus invested and growing.
Flexible Withdrawals

You can adjust the withdrawal amount based on your needs.
This provides better control compared to fixed annuities.
Tax Benefits

Withdrawals are taxed only on the gains, not the principal.
This reduces your overall tax liability.
Aligning with Retirement Goals
Importance of Financial Planning
Regular Monitoring

Track your investments regularly to ensure they meet your goals.
Rebalance your portfolio as needed to maintain the right allocation.
Minimising Risk

Shift more funds to debt options as you age to protect your corpus.
Avoid overexposure to equity in later years.
Avoid Common Pitfalls
Don’t Pause Investments

If you have other investments, keep contributing even after retirement.
This ensures continued growth and better financial security.
Avoid Direct Funds

Direct funds lack professional guidance, which is crucial at this stage.
Invest through a Certified Financial Planner for better advice and fund selection.
Inflation Awareness

Plan withdrawals keeping inflation in mind.
Your expenses may rise over time, so ensure your income keeps pace.
Final Insights
You have made a commendable start by investing in SBI Smart Retire Plus Fund. After maturity, focus on using the corpus wisely to generate regular income. Avoid annuities due to their limitations and opt for a diversified portfolio of mutual funds. Regularly monitor your investments and align them with your retirement goals. This disciplined approach will ensure financial independence and peace of mind during your golden years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7619 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 23, 2025

Asked by Anonymous - Jan 04, 2025Hindi
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Money
I am in debt trape around 8.5 lac with personal loan and credit card due
Ans: Evaluating Your Current Financial Situation
You have a debt of Rs 8.5 lakh, including personal loans and credit card dues.
This high-interest debt can strain your financial health and impact your investment goals.
Paying off these debts should be your immediate priority to secure your financial future.
Impact of Debt on Your Retirement Goal
The interest on credit card dues and personal loans is often very high.
High-interest debt reduces your disposable income for investments and savings.
Clearing your debts first will help you allocate funds towards achieving your Rs 2 crore goal.
Immediate Action Plan
Step 1: Prioritise Debt Repayment
Focus on paying off high-interest credit card dues first.
Use any available surplus or savings to reduce your debt immediately.
Avoid taking additional loans or credit until you clear existing liabilities.
Step 2: Consolidate Your Debt
Explore a low-interest personal loan to consolidate all high-interest debts.
This reduces the overall interest burden and simplifies repayment.
Ensure timely EMIs for the consolidated loan to maintain financial discipline.
Step 3: Budget and Reduce Expenses
Track your monthly expenses and cut non-essential spending.
Allocate more funds towards debt repayment to clear it faster.
Use budgeting apps or simple spreadsheets to monitor your progress.
Step 4: Avoid Credit Dependency
Stop using credit cards until all dues are cleared.
Use a debit card or cash to control spending and avoid further debt accumulation.
Build an emergency fund to handle unexpected expenses without using credit.
Reviewing Your Investment Plan
Achieving Rs 2 crore by 2030 is possible but requires strategic adjustments.
Currently, your priority should be clearing the Rs 8.5 lakh debt.
Once debts are cleared, invest aggressively towards your retirement goal.
Lump Sum Investment
Your Rs 15 lakh lump sum should not be invested before clearing debts.
After clearing debts, invest the lump sum strategically in equity mutual funds.
Consider systematic transfer plans (STPs) to reduce market timing risks.
Portfolio Rebalancing
Review your Rs 42 lakh portfolio for performance and alignment with your goal.
Ensure proper allocation across large, mid, and small-cap funds for balanced growth.
Avoid over-concentration in any single fund or asset category.
Importance of Professional Guidance
Engage with a certified financial planner to realign your portfolio.
Professional guidance helps select funds that match your risk profile and goals.
Regular funds, with expert advice, provide better support than direct funds.
Why Avoid Index Funds?
Index funds lack active management and fail to outperform during market corrections.
Actively managed funds deliver better returns with professional fund management.
A certified planner ensures better fund selection and periodic portfolio review.
Tax Considerations for Investments
LTCG above Rs 1.25 lakh from equity mutual funds is taxed at 12.5%.
STCG from equity mutual funds is taxed at 20%.
Tax-efficient investments and strategic withdrawals will optimise your post-tax returns.
Building a Debt-Free Future
Emergency Fund
Create an emergency fund covering 6–12 months of expenses.
This prevents dependence on credit during unforeseen events.
Adequate Insurance Cover
Ensure sufficient health and term insurance to protect your family financially.
Avoid investment-cum-insurance products like ULIPs and endowment plans.
Future SIP Contributions
Once debt is cleared, start SIPs to steadily build your retirement corpus.
SIPs in diversified equity funds can generate inflation-beating returns over time.
Final Insights
Clearing your Rs 8.5 lakh debt should be your immediate priority.
Post debt repayment, focus on achieving your Rs 2 crore retirement corpus.
Strategic investments in actively managed funds can help you achieve this goal.
Regular reviews and disciplined financial habits ensure long-term success.
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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