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Amit Bansal  | Answer  |Ask -

Answered on Jun 18, 2010

hirdayesh Question by hirdayesh on Jun 18, 2010Hindi
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whats should be the right answer for the question(tell us something about you).

Ans: Start with your career and then move on to academics and strengths and weaknesses. Focus on your strong points
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Career Coach  |43 Answers  |Ask -

Workplace Expert - Answered on Jan 30, 2024

Asked by Anonymous - Jan 19, 2024Hindi
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Career
Tell us why you wish to leave your current job. This is a very common question asked by employers in a job interview. What is the correct way to answer this question?
Ans: When responding to the question about why you want to leave your current job in a job interview, it's crucial to convey a positive message and avoid speaking negatively about your current or previous employers. Here's a paraphrased version of the tips:

1. Highlight career advancement: Stress your interest in professional growth and how the new position complements your long-term career objectives, showcasing a forward-thinking attitude.

- Example: "While I've gained valuable experience in my current role, I see this new opportunity as a chance for continued growth and development in alignment with my career goals."

2. Emphasize positive aspects of the new job: Showcase what attracts you to the new role, such as the company's values, mission, or specific job responsibilities. Frame your response around a positive change rather than escaping something negative.

- Example: "I'm enthusiastic about joining a company that prioritizes innovation. I believe my skills are well-suited to the challenges presented by this new role."

3. Refer to personal circumstances: If applicable, mention changes in your personal life (e.g., relocation, family situations) that prompt your job search, emphasizing that it's unrelated to dissatisfaction with your current job.

- Example: "Due to recent changes in my family situation, I'm seeking a position that offers a better balance between my professional and personal commitments. I believe this new opportunity provides that balance."

4. Steer clear of negativity: Avoid criticizing current or past employers, colleagues, or company culture. Keep your comments positive to present yourself in a favorable light.

- Example: Instead of expressing dissatisfaction with management, say something like, "I'm looking for a work environment that aligns more with my collaborative and team-oriented approach."

The key is to convey your enthusiasm for the new opportunity and how it aligns with your career goals, without dwelling on any negative aspects of your current or past roles.

..Read more

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Ramalingam

Ramalingam Kalirajan  |4602 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Asked by Anonymous - Jun 07, 2024Hindi
Money
Hello sir, i am 28 years male i have Doctor of Pharmacy a doctorate degree in India, but unfortunately couldn't find a stable job till date. I have multiple domain experiences worked in various companies and different fields moving away from my core. But could not manage to get more than 30k inhand. Now i plan to start a pharmaceutical wholesale/distributorship. I dont have any experience in particular to this....but my educational background and knowledge supports it. My research suggests i need atleast 15-20 lakhs to take the first step towards this goal. I have a corpus of just above 10 lakhs which is distributed in investments( sip 2000/m, stocks 2L, gold and silver 3L, personal loan i have given 3L, 50k liquid) so i dont want to withdraw any of these. Can you please suggest a better idea of how can i achieve this goal, so that i am financially stable in coming 5 years. Thankyou
Ans: I understand your situation, and it’s commendable that you’ve accumulated a corpus of over Rs 10 lakhs. Starting a pharmaceutical wholesale/distributorship is a significant step that requires careful planning and resource management. Let's break down your current financial standing and how you can reach your goal of financial stability within the next five years.

Assessing Your Current Financial Situation
First, let’s analyze your current financial assets:

SIP (Systematic Investment Plan): Rs 2,000/month
Stocks: Rs 2 lakhs
Gold and Silver: Rs 3 lakhs
Personal Loan Given: Rs 3 lakhs
Liquid Cash: Rs 50,000
You have wisely diversified your investments, which is a strong foundation. However, you require Rs 15-20 lakhs to start your wholesale/distributorship business, and you prefer not to liquidate your existing investments. This calls for a strategic approach to bridge the financial gap without disrupting your current investments.

Leveraging Existing Investments
Gold and Silver Investments
Gold and silver are relatively stable assets. Instead of selling them outright, consider leveraging them. Many banks and financial institutions offer loans against gold. This way, you can utilize the value of your gold and silver without selling them, providing you with the necessary liquidity for your business venture.

Personal Loan Given
The Rs 3 lakhs you have lent out can be a resource. If possible, negotiate with the borrower for an early repayment. You could offer a slight discount on the interest rate as an incentive for early repayment. This can provide you with additional liquidity.

Stock Investments
Your Rs 2 lakhs in stocks can be partially leveraged. You might consider a margin loan against these stocks, which allows you to borrow money by using your existing shares as collateral. Be cautious with this option, as the stock market can be volatile.

Exploring Financing Options
Business Loans
Consider applying for a business loan from a bank or financial institution. Given your educational background and business plan, you might qualify for a start-up loan. Prepare a detailed business plan outlining your strategy, projected income, and how you plan to repay the loan. This increases your chances of securing the loan.

Government Schemes
Look into government schemes that support small and medium-sized enterprises (SMEs). Schemes like the Pradhan Mantri Mudra Yojana (PMMY) provide loans up to Rs 10 lakhs for non-corporate, non-farm small/micro enterprises. These loans can be an excellent way to secure additional funding without hefty interest rates.

Venture Capital and Angel Investors
If you’re open to it, consider seeking venture capital or angel investors. These investors provide capital in exchange for equity or a share of the profits. This can be a good way to secure significant funding without taking on debt, though it means sharing ownership of your business.

Building a Strong Financial Plan
Creating a Budget
Develop a detailed budget for your business. Outline all initial costs, ongoing expenses, and expected revenue. This helps in understanding how much funding you need and when you can expect to break even and start making a profit.

Emergency Fund
While focusing on your business, don’t forget personal financial stability. Maintain an emergency fund equivalent to six months of personal and business expenses. This ensures that unexpected expenses don’t derail your plans.

Systematic Withdrawal Plan (SWP)
Consider setting up a Systematic Withdrawal Plan from your mutual funds. This provides a regular inflow of funds while keeping your investment intact. It’s a way to create liquidity without liquidating your investments.

Enhancing Your Financial Knowledge
Educational Courses and Certifications
Though you have a solid educational background, consider taking courses related to business management and finance. Certifications in these areas can boost your confidence and competence in managing your new venture.

Mentorship
Seek out mentors who have experience in the pharmaceutical wholesale business. Their guidance can be invaluable, helping you avoid common pitfalls and providing insights that can lead to success.

Monitoring and Adjusting Your Strategy
Regular Financial Reviews
Set up a schedule for regular financial reviews. Assess your business’s financial health, review your investment portfolio, and adjust your strategy as needed. This ensures you stay on track towards your financial goals.

Staying Informed
Stay updated with market trends, both in the pharmaceutical industry and in finance. This knowledge helps you make informed decisions and adapt to changes in the market environment.

Final Insights
Your ambition and strategic thinking are commendable. With a clear plan and disciplined approach, you can bridge the financial gap and achieve your business goals. Utilize the value of your current investments wisely, explore various financing options, and continually enhance your financial knowledge. This comprehensive approach will help you build a successful pharmaceutical wholesale/distributorship and achieve financial stability in the next five years.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4602 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Asked by Anonymous - Jun 05, 2024Hindi
Money
I want to transfer 10cr from the US to Indian stock market. What’s the best way to go about it? I was an NRI but now settled in India. I have about 10cr worth of US stocks (mostly index funds). I want to move those funds to Indian stock market.
Ans: Transferring funds from the US to the Indian stock market can be a complex but rewarding process. You aim to move Rs. 10 crores from US stocks, mainly index funds, to the Indian market. Here is a detailed guide to help you make this transition smoothly and effectively.

Understanding the Process

Transferring funds internationally involves various steps, regulations, and procedures. First, understand the regulatory framework and tax implications. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) regulate the transfer of funds and investment in the stock market.

Step-by-Step Guide

The process can be divided into several key steps. Here’s a comprehensive breakdown:

Close US Investments
To start, sell your US stocks. Since you primarily have index funds, it’s wise to assess their performance. Index funds might have low fees, but actively managed funds often outperform them in diverse markets.

Understand Tax Implications
When selling US stocks, you might face capital gains tax in the US. Consult with a tax advisor to understand your obligations. Ensure compliance to avoid any penalties.

Open a Non-Resident External (NRE) Account
Open an NRE account in India. This account allows you to transfer funds without the hassle of constant currency conversion. It also offers benefits like tax-free interest.

Transfer Funds to India
Use this NRE account to transfer your funds. Choose a reliable bank with good exchange rates. Monitor exchange rates closely to get the best value.


Open a Mutual Fund Account Through an MFD or CFP
To invest in the Indian stock market, first open a mutual fund account through a Mutual Fund Distributor (MFD). MFDs can provide you with the necessary support and guidance in choosing the right funds.

Find the Right Portfolio Management Service (PMS) Through a Certified Financial Planner
A Certified Financial Planner can help you identify the right Portfolio Management Service (PMS) that aligns with your investment goals. PMS offers personalized management of your investments, aiming for optimal returns.

Disadvantages of Index Funds

While index funds are popular, they have limitations. They mimic market performance and cannot outperform it. Active fund managers, however, use their expertise to beat market returns.

Benefits of Actively Managed Funds

Actively managed funds offer several advantages. Fund managers research and select stocks with growth potential. They adjust portfolios based on market conditions, aiming for higher returns.

Disadvantages of Direct Funds

Direct funds might seem appealing due to lower fees. However, they require thorough research and constant monitoring. A Certified Financial Planner can guide you better with regular funds, ensuring professional management.

Benefits of Regular Funds Through a Certified Financial Planner

Investing through a Certified Financial Planner ensures you get professional advice. They help in selecting the right funds, managing your portfolio, and achieving financial goals.

Diversifying Your Portfolio

Investing in a mix of large-cap, mid-cap, and small-cap funds helps in diversifying your portfolio. Each category offers different risk and return profiles, balancing your investment strategy.

Large-Cap Funds

Large-cap funds invest in well-established companies. They provide stability and steady returns. These funds are ideal for conservative investors looking for consistent growth.

Mid-Cap Funds

Mid-cap funds invest in medium-sized companies with high growth potential. They offer a balance between risk and return, suitable for investors with a moderate risk appetite.

Small-Cap Funds

Small-cap funds invest in smaller companies with significant growth prospects. They are riskier but can provide substantial returns. These funds are suitable for aggressive investors.

Sector-Specific Funds

Consider sector-specific funds like pharmaceuticals, technology, or finance. They allow you to capitalize on the growth of specific industries. Ensure a well-balanced portfolio to manage risk.

Regular Review and Rebalancing

Regularly review and rebalance your portfolio. Market conditions change, and rebalancing ensures your investments align with your goals. A Certified Financial Planner can assist in this process.

Importance of Financial Planning

Financial planning is crucial for successful investing. It helps in setting clear goals, understanding risk tolerance, and planning for long-term objectives. A Certified Financial Planner can provide a personalized financial plan.

Genuine Compliments and Empathy

Your decision to invest in the Indian stock market is commendable. It shows a proactive approach to managing your wealth. We understand that this process can be daunting. Rest assured, with the right guidance, you will navigate this transition smoothly.

Final Insights

Transferring Rs. 10 crores from the US to the Indian stock market is a significant step. By following these guidelines, you can ensure a seamless transition. Sell your US stocks, understand tax implications, transfer funds, and invest wisely. Prioritize actively managed funds for better returns. Regularly review your portfolio and seek professional guidance from a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4602 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Money
I am 45 years my name is U K Singh I have MF of 2000000 and SIP of 6500/ Month PPF Value 1500000 NPS Value 500000 by monthly contribution of 5K FD of 2000000 NSC of 1000000 My wife is also 45 years Her MF Value is of 500000 PPF Value 2100000 NPS Value 500000 by monthly contribution of 5K FD of 500000 3 Plots of 1 Cr My current monthly expenses are 30K. For my son’s medical education from 2029 to 2034 I will need money and for our retirement phase we will need money. Please suggest what we have to do
Ans: Your current investments are well-diversified across various instruments. These include mutual funds (MF), Public Provident Fund (PPF), National Pension System (NPS), Fixed Deposits (FD), and National Savings Certificates (NSC). Additionally, you have significant investments in real estate through plots.

You and your wife both have substantial PPF and NPS investments, which is a good strategy for long-term savings and tax benefits. Your monthly expenses are Rs. 30,000, and you will need funds for your son's medical education from 2029 to 2034 and for your retirement.


Your diversified portfolio shows a good understanding of risk management. The regular contributions to NPS and PPF are commendable as they offer long-term benefits. Your investment discipline is evident from your systematic investment plans (SIPs) and regular savings.

Understanding Your Goals
Let's break down your financial goals into two primary categories:

Funding Your Son's Medical Education (2029-2034)

Retirement Planning

Funding Your Son's Medical Education
Your son's education is a short to medium-term goal. To meet this goal, you need to ensure liquidity and safety of principal.

Recommendations:

Continue Your SIPs: Keep your SIPs in mutual funds going. These will help accumulate a significant corpus over time.

Allocate a Separate Fund for Education: Consider creating a separate investment portfolio for your son's education. You could increase your SIP amount or start a new SIP specifically for this goal.

Invest in Debt Funds: Given the shorter time frame, consider debt mutual funds. They offer better returns than FDs and are more tax-efficient.

Recurring Deposits (RDs): RDs can also be considered for medium-term goals. They are safe and offer guaranteed returns.

Partial Withdrawal from PPF: Since your PPF accounts have substantial balances, you can consider partial withdrawals when required. PPF allows withdrawals after the 7th year.

Retirement Planning
Retirement planning is a long-term goal, and you need to ensure a steady income post-retirement.

Recommendations:

Increase SIP Contributions: If possible, increase your SIP contributions. Equity mutual funds are suitable for long-term goals due to their potential for higher returns.

Balanced Funds: Consider balanced or hybrid funds. These invest in both equity and debt instruments, providing a balance of growth and safety.

Review NPS Contributions: Your NPS contributions are excellent for retirement planning. Ensure that you and your wife continue contributing Rs. 5,000 monthly.

Systematic Withdrawal Plan (SWP): Post-retirement, use SWP from your mutual funds for regular income. SWPs provide a steady income stream and are tax-efficient.

Health Insurance: Ensure you have adequate health insurance. Medical emergencies can significantly impact your savings.

Evaluation of Current Investments
Mutual Funds (MF):

Your MF investments are Rs. 2,000,000 and Rs. 500,000 respectively. Continue these investments and consider increasing your SIPs if possible.
PPF:

Your PPF values are Rs. 1,500,000 and Rs. 2,100,000. PPF is an excellent long-term investment. Avoid withdrawing unless necessary.
NPS:

Both you and your wife have Rs. 500,000 in NPS with monthly contributions of Rs. 5,000. This is a good strategy for retirement savings.
FDs and NSCs:

FDs (Rs. 2,000,000 and Rs. 500,000) and NSCs (Rs. 1,000,000) are safe but offer lower returns. Consider shifting a portion to higher-yielding instruments like debt mutual funds or balanced funds.
Real Estate:

Your three plots valued at Rs. 1 crore are a significant investment. Real estate is illiquid, so avoid relying on it for immediate needs.

We understand the importance of securing your son's future and ensuring a comfortable retirement. Your careful planning and disciplined approach are commendable. Balancing current expenses, future education costs, and retirement savings can be challenging. However, with a structured approach, you can achieve your goals.

Adjusting Your Portfolio
Increase Equity Exposure:

For long-term goals like retirement, increasing equity exposure is advisable. Equity has the potential for higher returns, which can significantly enhance your retirement corpus.
Debt Allocation:

For your son's education, focus more on debt instruments to ensure safety and liquidity. Debt mutual funds, RDs, and PPF withdrawals can be effective.
Emergency Fund:

Maintain an emergency fund equal to 6-12 months of your monthly expenses. This fund should be in liquid instruments like savings accounts or liquid mutual funds.
Regular Review and Rebalancing
It's crucial to regularly review your portfolio and make necessary adjustments. Market conditions, interest rates, and personal circumstances change over time. Regular reviews ensure that your investments remain aligned with your goals.

Rebalancing Strategy:

Review your asset allocation annually. If equity markets perform well, your equity allocation may exceed your target. In such cases, consider shifting some funds to debt instruments.
Avoiding Common Pitfalls
Avoid Over-Reliance on Fixed Deposits:

While FDs are safe, their returns are often lower than inflation. Over-reliance on FDs can erode your purchasing power over time.
Diversify Within Mutual Funds:

Don't concentrate all your mutual fund investments in one category. Diversify across large-cap, mid-cap, and multi-cap funds.
Avoid High-Cost Insurance Products:

Avoid insurance products with high premiums and low returns. Focus on pure term insurance for adequate coverage and invest the rest in mutual funds.
Tax Planning
Effective tax planning can enhance your returns. Utilize all available tax-saving instruments.

PPF and NPS:

Both PPF and NPS provide tax benefits under Section 80C and Section 80CCD respectively. Maximize these contributions for tax savings.
Mutual Funds:

Equity mutual funds held for more than one year qualify for long-term capital gains tax at 10% for gains exceeding Rs. 1 lakh.
Health Insurance:

Premiums paid for health insurance qualify for deductions under Section 80D.
Final Insights
Your disciplined approach to savings and investments is praiseworthy. By fine-tuning your portfolio and aligning it with your goals, you can ensure financial security for your family. Focus on increasing your equity exposure for long-term goals and maintaining liquidity for short-term needs. Regular reviews and rebalancing will keep your investments on track.

Planning for your son's education and your retirement simultaneously is challenging but achievable with a structured plan. Continue your disciplined investment approach, and you will be well-prepared for both.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4602 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Money
Sir, I have purchaes LIC jeevan Saral policy in the year 2012. I am paying Rs 4083/- towards premium every month. I want to surrender this policy now, but unable to find details about bonus etc. Plz help.
Ans: Surrendering an insurance policy is a major decision. You have consistently paid Rs 4083/- per month since 2012. This dedication shows your commitment to securing your future. Now, let's delve into the specifics of surrendering your policy and its implications.

Surrender Value and Its Components
The surrender value is the amount you get when you decide to discontinue your policy before its maturity. This amount includes two main components:

Guaranteed Surrender Value: This is a percentage of the premiums you have paid, minus the first year's premium and any bonuses you might have received.

Special Surrender Value: This is usually higher than the guaranteed surrender value. It takes into account factors like the duration of the policy and the total premiums paid.

Since you have been paying premiums for over a decade, you are likely to receive a special surrender value. This value reflects the time and money invested in the policy.

Evaluating Bonuses
Insurance policies often come with bonuses, which are additional amounts added to the sum assured. These bonuses can significantly impact the surrender value. However, understanding the exact bonus details can be challenging without specific policy documentation. Generally, bonuses accumulate annually and are declared by the insurance company based on their profits.

In your case, given the policy's tenure, there should be a notable bonus component. But, for precise information, it's essential to contact the insurance company directly or refer to your policy documents.

Analyzing Financial Goals
Surrendering a policy is not just about the immediate financial gain. It's crucial to align this decision with your long-term financial goals. Reflect on the reasons for surrendering the policy:

Immediate Financial Needs: If you have urgent financial requirements, surrendering the policy might provide quick funds.

Better Investment Opportunities: You might want to explore other investment avenues that offer higher returns.

Changing Financial Priorities: Your financial goals and priorities might have evolved over time.

Exploring Alternative Investments
Upon surrendering your policy, you might consider reinvesting the proceeds. Here are some options to consider:

Mutual Funds
Mutual funds offer a diverse range of investment opportunities. They are managed by professional fund managers who make investment decisions on your behalf. Here’s why mutual funds can be a good option:

Diversification: Mutual funds invest in a variety of assets, reducing risk.

Professional Management: Experienced fund managers handle your investments.

Liquidity: You can easily buy and sell mutual fund units, providing flexibility.

Potential for Higher Returns: Historically, mutual funds have offered higher returns compared to traditional savings instruments.

Systematic Investment Plans (SIPs)
SIPs are a disciplined way to invest in mutual funds. They allow you to invest a fixed amount regularly, ensuring you benefit from market fluctuations. This method can help you build a substantial corpus over time.

Debt Instruments
If you prefer lower risk, consider debt instruments like fixed deposits or government bonds. These options provide stability and predictable returns.

Equity Investments
For those comfortable with higher risk, equity investments can offer significant growth potential. Investing in stocks directly can be rewarding but requires careful analysis and monitoring.

Assessing Risks and Benefits
Every investment comes with its own set of risks and benefits. It’s important to evaluate these before making a decision:

Risk Tolerance: Understand your ability to withstand market fluctuations.

Time Horizon: Consider the duration you can keep your money invested.

Financial Goals: Align your investments with your long-term objectives.

Tax Implications: Different investments have varied tax treatments. Understand the tax benefits and liabilities associated with each option.

Consulting a Certified Financial Planner
To make an informed decision, it’s wise to consult a Certified Financial Planner (CFP). A CFP can provide personalized advice based on your financial situation and goals. They can help you:

Analyze Your Current Financial Position: Assess your income, expenses, and savings.

Set Realistic Goals: Define achievable financial objectives.

Create a Customized Investment Plan: Develop a strategy tailored to your needs.

Monitor and Adjust: Regularly review and adjust your plan to stay on track.


Your dedication to paying premiums for over a decade is commendable. This long-term commitment reflects your focus on financial security. When considering policy surrender, it's important to maintain this long-term perspective. Think about how your decisions today will impact your financial future.


We understand that navigating financial decisions can be challenging. It’s normal to feel uncertain about the best course of action. By gathering information and seeking professional advice, you’re taking the right steps toward making an informed decision.

Final Insights
Surrendering your insurance policy is a significant decision with various implications. It's essential to consider the surrender value, bonuses, and your long-term financial goals. Exploring alternative investments can provide opportunities for better returns and financial growth. Consulting a Certified Financial Planner can offer valuable guidance tailored to your needs. Remember to maintain a long-term perspective and make decisions that align with your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

...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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