Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |9705 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 26, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Oct 25, 2024Hindi
Listen
Money

Sir, I'm 43 years old and have 10k sip in parag flexi cap, canara large cap, quant active and axis mid cap.5k sip in motilal midcap, ICICI mid and large cap. Current mutual fund corpus 16 lakhs and have another corpus of 1.5 lakh which is mostly in debt instruments like FD. I have a 14 year old son and a passive income of 30k which I expect to continue for next 10 years. My monthly expenses is around 70k. I would like to understand the corpus required for my retirement if I want to retire now and also corpus for my son's education. Expecting your valuable suggestion and advice. I don't expect expenses to grow higher and have a decent medical insurance. I had asked this question but haven't got any response

Ans: You are 43 years old with an SIP allocation in both large-cap and mid-cap funds. You have a total mutual fund corpus of Rs 16 lakhs and an additional Rs 1.5 lakh in debt instruments. Your passive income is Rs 30k per month and expenses are Rs 70k per month.

Passive Income and Expenses
Your passive income covers part of your monthly expenses. This is good but not sufficient for your monthly needs. You might need to draw from your investments to cover the gap.

Retirement Corpus Calculation
Retiring now requires careful planning. To sustain your lifestyle, you need to account for 70k monthly expenses.

Let's assume:

Your retirement age is 60

Life expectancy is 85

Monthly expenses remain the same

You will need a significant corpus to cover 25 years of expenses post-retirement.

Educational Corpus for Your Son
Your son is 14 years old, and college expenses will kick in within the next 4-5 years. Assuming a conservative approach:

Consider the cost of education, including tuition and other expenses

Account for inflation

Investment Strategy
Continuing Current SIPs
Parag Flexi Cap

Canara Large Cap

Quant Active

Axis Mid Cap

Motilal Midcap

ICICI Mid and Large Cap

Potential Changes
Evaluate the performance of your current funds. If they are consistently underperforming, consider switching to better-performing funds. However, ensure these align with your risk profile.

Diversification
Balance your portfolio with a mix of large, mid, and small caps

Consider international exposure for broader diversification

Debt Instruments
With Rs 1.5 lakh in debt instruments, ensure they align with your risk tolerance. Debt instruments provide stability but lower returns.

Tax Efficiency
Be mindful of the new mutual fund capital gains tax rules:

LTCG above Rs 1.25 lakh is taxed at 12.5%

STCG is taxed at 20%

Regular Reviews
Regularly review and rebalance your portfolio. This keeps your investments aligned with your goals and market conditions.

Insurance
Ensure you have adequate health and life insurance. This protects your family's financial future.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of expenses. This covers unforeseen situations.

Best Regards
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Oct 27, 2024 | Answered on Oct 28, 2024
Listen
Sir, there was a small mistake in my question. The debt amount I have with me is 1.5 cr and not lakhs. Will that enable me to take a retirement now
Ans: With Rs 1.5 crore in debt instruments, Rs 16 lakh in mutual funds, and passive income of Rs 30,000 for 10 years, retiring now is possible but needs careful planning.

Your monthly expenses are Rs 70,000. Once the passive income stops, your investments must cover this entirely. Assuming 6% inflation, your expenses will double every 12 years, requiring a significant retirement corpus. You’ll need Rs 8-9 crore to comfortably sustain your lifestyle for 42 years.

For your son’s education, set aside a portion of the Rs 1.5 crore in safe debt instruments or debt mutual funds to cover his college expenses in 4-5 years.

Action Plan:

Continue SIPs and regularly review fund performance.
Maintain emergency funds (6-12 months of expenses).
Ensure your health insurance is sufficient to avoid medical liabilities.
Periodically rebalance your equity and debt investments.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9705 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - May 10, 2024Hindi
Listen
Money
Hi, I am 47 years old. I have a corpus of about 3.4Cr of which about 1.5Cr is in equities(Mostly large cap) & ETFs and rest is FD and PF. Apart from this, I have about Rs 72000 rental income. I have a term insurance and family medical insurance. I need to work for atleast another 3 years to cover my elder son's education and need a corpus for my 14 yrs old daughter's education of say about 50L. I can invest around 2L per month in SIPs. Given all this, how much more retirement corpus I need to have a regular monthly income of 2L? Thanks for replying.
Ans: It's great to see you've built a substantial corpus and are planning for your future financial needs. Let's analyze your situation and determine the steps needed to achieve your goals.

Current Financial Status
Corpus Allocation
Your corpus of ?3.4 crore, with a significant portion in equities, FDs, and PF, reflects a diversified investment approach.

Additional Income
The rental income of ?72,000 per annum provides an additional source of cash flow, contributing to your overall financial stability.

Future Financial Goals
Education Expenses
You have identified the need for ?50 lakh for your daughter's education in 14 years and have committed to investing ?2 lakh per month in SIPs to achieve this goal.

Retirement Planning
To secure a regular monthly income of ?2 lakh post-retirement, we need to calculate the additional retirement corpus required.

Retirement Corpus Calculation
Desired Monthly Income
A monthly income of ?2 lakh translates to an annual income of ?24 lakh post-retirement.

Withdrawal Rate
Assuming a conservative withdrawal rate of 5-6% from the retirement corpus, we can estimate the required corpus as follows:

?24,00,000 / 0.05 = ?4.8 crore
?24,00,000 / 0.06 = ?4 crore

Gap Analysis
Current Retirement Corpus
Your current corpus of ?3.4 crore is significant but falls short of the required retirement corpus.

Additional Savings
To bridge the gap, you may consider increasing your monthly SIP contributions or exploring other investment avenues that offer potential for higher returns.

Asset Allocation
Review your asset allocation to ensure it aligns with your risk tolerance and investment goals, especially considering the need for regular income post-retirement.

Conclusion
While you have made commendable progress towards your financial goals, there is a need to augment your retirement corpus to secure a regular monthly income of ?2 lakh post-retirement. By reassessing your investment strategy, increasing your savings rate, and exploring suitable investment options, you can work towards achieving financial independence and ensuring a comfortable retirement.

If you require further assistance or personalized advice, feel free to reach out. I'm here to support you in navigating your financial journey and achieving your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 29, 2024

Asked by Anonymous - Oct 26, 2024Hindi
Listen
Money
Sir, I'm 43 years old and have 10k sip in parag flexi cap, canara large cap, quant active and axis mid cap.5k sip in motilal midcap, ICICI mid and large cap. Current mutual fund corpus 16 lakhs and have another corpus of 1.5 cr which is mostly in debt instruments like FD. I have a 14 year old son and a passive income of 30k which I expect to continue for next 10 years. My monthly expenses is around 70k. I would like to understand the corpus required for my retirement if I want to retire now and also corpus for my son's education. Expecting your valuable suggestion and advice. I don't expect expenses to grow higher and have a decent medical insurance
Ans: Hello;

Although you do not expect expenses to get higher from 70 K level currently but inflation will make it grow to 1.25 L in 10 years time considering 6% inflation.

It is recommended that you keep a sum of 50 L+ 16 L earmarked for higher education of your kid.

Inflation in education doesn't get reflected in CPI or WPI but is much higher currently hence a higher provision towards this is desirable.

If you invest your 1 Cr FD into equity MFs(3.11 Cr after 10 years )and continue 50 K sip for next 10 years(1.16 Cr), you will have a corpus of 4.27 Cr.

If you use this to buy an immediate annuity from a life insurance company you may expect a monthly payout of 1.5 L(post-tax).(Considering 6% annuity rate)

I would recommend you to postpone your retirement by 10 years considering ongoing expense of kids education and retirement corpus build, however if you have corpus of 5 Cr.(Preferably in a moderate risk scheme such as Kotak equity savings fund)today then you may do 3% swp and earn a monthly income of 1.1 L+30 K= 1.4 L total monthly income.

Happy Investing;

You may follow us on X at @mars_invest for updates.

..Read more

Latest Questions
Nayagam P

Nayagam P P  |8612 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Career
Sir my son secured 21000 ranking in kcet which College may he get in ece. And EcE or mechanical which one is good
Ans: With a KCET rank of 21 000 (General-All India), admission into Electronics & Communication Engineering is guaranteed at a range of reputable Karnataka institutes whose last-round ECE closing ranks exceed your rank. These colleges have departments that are recognized for quality, modern ECE labs (like VLSI, embedded systems, and signal processing), active job placement support with a 70–90% success rate in placing students over the last three years, strong connections with industries, and good campus facilities. Fifteen such institutions where your son will certainly secure ECE admission are:
MVJ College of Engineering, Bangalore; Sir M. Visvesvaraya Institute of Technology, Bangalore; Reva University, Bangalore; Acharya Institute of Technology, Bangalore; RNS Institute of Technology, Bangalore; BNM Institute of Technology, Bangalore; Nitte Meenakshi Institute of Technology, Bangalore; BMS Institute of Technology & Management, Yelahanka; East West Institute of Technology, Bangalore; CMR Institute of Technology, Bangalore; New Horizon College of Engineering, Bangalore; JSS Science and Technology University, Mysore; Dayananda Sagar College of Engineering, Bangalore; RV College of Engineering Off-Campus (ECE electives), Bangalore; and Ramaiah Institute of Technology, Bangalore.

Electronics & Communication and Mechanical Engineering have some important similarities, like having the right accreditations, labs, job placement help, knowledgeable teachers, and connections with companies, but they focus on different subjects (like VLSI and signal processing for Electronics & Communication and thermodynamics and CAD/CAM for Mechanical Engineering), have different job markets (telecom/IoT for Electronics & Communication and automotive/manufacturing for Mechanical Engineering), require different skills, offer different research chances, and attract different employers. Both are excellent branches; selection hinges on your son’s interest in circuit/communication systems or mechanical design/manufacturing and his long-term career goals.

Recommendation: Encourage your son to pursue ECE if he enjoys electronics, IoT, and embedded systems; opt for Mechanical if he prefers core design, manufacturing, and automotive sectors. Align the choice with his passion and envisioned professional trajectory. All the BEST for Admission & a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |8612 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2025

Career
My son has got offer from IISc Btech Mathematics and Computing and IIT Hyderabad Btech CSE. Which would be better to join
Ans: Sunil Sir, IISc’s four-year BTech in Mathematics and Computing, with only 52 seats and NAAC A++ accreditation, combines rigorous core courses in analysis, algebra, algorithms, AI/ML, breadth in sciences, and humanities, supported by study tracks in AI, theoretical CS, quantum computing, and computational biology. Its emphasis on research and small cohort size fosters close faculty mentorship, with 71.43% placement consistency over the past three years and an average package of ?37.31 LPA. IIT Hyderabad’s BTech CSE, a NIRF-ranked Institute of Eminence, features a balanced core and elective curriculum integrating theory, systems, and interdisciplinary projects, modern AI, cloud, and networking labs, and robust Practice School internships. Its placement cell achieved a 79.37% CSE placement rate in 2024 with an average package of ?29.68 LPA and 100+ recruiters annually. Both institutions possess strong industry ties, active research centers, and dedicated career services, yet IISc offers a more specialized mathematics-CS blend and higher average placements, while IIT Hyderabad provides broader peer networks, larger cohort dynamics, and dedicated CSE infrastructure.

Recommendation: Given your son’s interest in pure computation and research, the recommendation is to join IISc’s Mathematics and Computing for its niche curriculum, small-cohort mentorship, and superior average placements; alternatively, choose IIT Hyderabad CSE for broader student community, comprehensive labs, and strong industry engagement. All the BEST for Admission & a Prosperous Future!

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

...Read more

Dr Shakeeb Ahmed

Dr Shakeeb Ahmed Khan  |164 Answers  |Ask -

Physiotherapist - Answered on Jul 12, 2025

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x