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

Ramalingam Kalirajan  |10270 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 27, 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
Ganesh Question by Ganesh on May 16, 2024Hindi
Money

I've started a PPF account and it got matured in 2019 and extended it for 5 years. The maturity value would be around 10L by Mar 25. I want to invest the maturity amount for further 3 years for the purpose of my daughter's college admission (2028). Please suggest whether I can withdraw it and invest it elsewhere (your expert opinion here pls) or continue for further 5 years and withdraw partially - which one is best?

Ans: Evaluating Your PPF Investment Strategy
At this stage, you have a matured PPF account, extended for five years, maturing again in March 2025 with an estimated value of Rs. 10 lakhs. Your objective is to invest this amount for three years to fund your daughter's college admission in 2028. Let’s evaluate the best options for you.

Understanding PPF Extension Benefits
Safety and Returns:

PPF is a government-backed scheme offering tax-free returns. Extending PPF ensures continued safety and stable returns without market risks.

Flexibility:

After the extension, you can withdraw partially or the full amount as needed. This flexibility can be beneficial for short-term goals.

Interest Rate:

The current PPF interest rate is attractive compared to other fixed-income instruments. Extending the PPF can help accumulate additional interest without tax implications.

Alternatives to PPF Extension
While PPF is a safe and reliable option, other investments could offer higher returns for your three-year investment horizon. Let’s explore these options.

Short-Term Debt Mutual Funds
Advantages:

Higher Returns: Debt funds typically offer higher returns than fixed deposits and PPF for short-term investments.
Liquidity: Easy to redeem and usually no lock-in period.
Tax Efficiency: If held for more than three years, gains are taxed at a lower rate due to indexation benefits.
Considerations:

Market Risks: Though low, there are some market risks involved compared to PPF.
Tax on Gains: Short-term capital gains are taxed as per your income tax slab.
Fixed Maturity Plans (FMPs)
Advantages:

Predictable Returns: FMPs invest in fixed-income securities maturing at the same time as the plan.
Tax Efficiency: Held for over three years, they benefit from indexation, reducing tax liability on gains.
Considerations:

Lock-In Period: Limited liquidity due to fixed tenure.
Lower Returns: Slightly lower returns compared to other debt funds.
Recurring Deposits (RD) or Fixed Deposits (FD)
Advantages:

Safety: Guaranteed returns with minimal risk.
Fixed Returns: Interest rates are locked in, providing predictable income.
Considerations:

Tax on Interest: Interest earned is taxable as per your income tax slab.
Lower Returns: Typically offer lower returns compared to debt funds.
Making the Decision
Based on your need for the funds in 2028, here are some considerations to help you decide between continuing the PPF extension or withdrawing and reinvesting elsewhere.

Continue PPF Extension
Benefits:

Safety and Stability: Guaranteed returns with no market risk.
Tax-Free Interest: Continued tax-free interest accumulation.
Drawbacks:

Moderate Returns: Potentially lower returns compared to other investment options.
Withdraw PPF and Reinvest
Option 1: Short-Term Debt Mutual Funds

Higher Potential Returns: Offers better returns compared to PPF and fixed deposits.
Liquidity and Flexibility: Easier to withdraw funds when needed.
Option 2: Fixed Maturity Plans (FMPs)

Predictable Returns: Provides a clear understanding of expected returns.
Tax Efficiency: Beneficial tax treatment if held for more than three years.
Option 3: Fixed Deposits or Recurring Deposits

Safety and Security: Guaranteed returns with minimal risk.
Lower Potential Returns: Typically lower returns than debt mutual funds.
Recommended Strategy
Considering your goal of funding your daughter’s college education in 2028, a combination of safety and potential returns is crucial.

Suggested Approach:

Partial PPF Withdrawal: If liquidity is needed before 2028, consider withdrawing a portion of your PPF and reinvesting in short-term debt mutual funds or FMPs for higher returns.
Continue PPF: For the remaining amount, continue with the PPF extension to benefit from guaranteed, tax-free returns.
Example Strategy Breakdown
Option 1: Partial Withdrawal and Reinvestment

Withdraw Rs. 5 lakhs from PPF: Invest this amount in a short-term debt mutual fund or an FMP.
Continue Rs. 5 lakhs in PPF: Benefit from stable, tax-free returns.
Option 2: Full PPF Continuation

Continue Rs. 10 lakhs in PPF: Ensure guaranteed, tax-free returns until 2028.
Plan for Partial Withdrawals: Utilize PPF’s partial withdrawal option if needed before 2028.
Conclusion
Balancing safety, liquidity, and returns is key to achieving your goal. By combining partial PPF continuation with strategic reinvestment in higher-yielding instruments, you can optimize your investment for your daughter’s college admission.

Key Points:

Evaluate Your Risk Tolerance: Ensure your investment choice aligns with your risk appetite.
Consider Tax Implications: Factor in the tax benefits and liabilities of each investment option.
Review Regularly: Monitor your investments periodically to ensure they are on track to meet your goals.
By carefully selecting your investment strategy, you can achieve the necessary funds for your daughter’s education while balancing risk and return.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
Asked on - May 28, 2024 | Answered on May 28, 2024
Listen
Thank you so much for your detailed recommendations Sir. This is really helpful and gives me much needed clarity. Thanks again.
Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |10270 Answers  |Ask -

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

Asked by Anonymous - May 04, 2024Hindi
Listen
Money
There is about 9lacs in my daughter PPF account. after one renewal the period of 20 years is over. What are the options for investing if she withdraw the amount? Minimum five years investment
Ans: Congratulations on successfully completing the 20-year tenure of your daughter's PPF account! Now, let's explore the options for investing the proceeds.

Understanding Investment Goals:

Before proceeding, it's essential to clarify your investment objectives, risk tolerance, and time horizon. What are your financial goals for the next five years?

Analyzing Investment Options:

Equity Mutual Funds: Equity mutual funds offer the potential for high returns over the long term but come with higher volatility.

Debt Mutual Funds: Debt mutual funds invest in fixed-income securities like bonds and offer relatively stable returns with lower risk compared to equities.

Balanced Funds: Balanced funds invest in a mix of equities and debt instruments, providing a balanced approach to growth and stability.

Fixed Deposits: Fixed deposits offer a guaranteed rate of return and are suitable for conservative investors seeking capital preservation.

Systematic Investment Plans (SIPs): SIPs allow you to invest regularly in mutual funds, harnessing the power of compounding to build wealth over time.

Assessing Risk and Return:

Consider your risk tolerance and investment horizon when selecting investment options. Equity investments offer higher potential returns but come with higher risk, while debt instruments provide stability but lower returns.

Consultation with a Certified Financial Planner:

Engage with a Certified Financial Planner (CFP) to assess your financial goals and risk profile accurately. A CFP can recommend a customized investment strategy aligned with your objectives.

Conclusion:

In conclusion, various investment options are available for deploying the proceeds from your daughter's matured PPF account. By considering your investment goals, risk tolerance, and time horizon, you can select the most suitable investment avenue.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Asked by Anonymous - Aug 16, 2025Hindi
Career
Sir, I registered for CSAB and I got IIIT Dharwad (ECE) in 2nd round, and there are IIIT Bhopal, IIIT Nagpur and IIIT Kottayam, And there are chances of getting IIIT Bhopal, so should I go for the 3rd round In short is IIIT DHARWAD Better than IIIT Bhopal?
Ans: IIIT Dharwad’s ECE program offers a modern curriculum, upgraded labs, and a placement cell that supports active skill-building and networking. Placement percentages over the last three years range from 62% to 82%, with top recruiters such as Cognizant, IBM, Infosys, and Oracle participating regularly. Infrastructure and teaching quality are solid but reviews mention that regional location sometimes limits industry exposure and internship opportunities outside IT. By contrast, IIIT Bhopal’s ECE branch has shown steady improvement, with placement rates of 72–98% in the last three years, impressive average packages, and deepening industry relations with leading tech and core electronics firms. IIIT Bhopal benefits from a more central location, a young but active faculty, and greater cross-domain internship and research collaborations, resulting in more flexible job options for ECE graduates. Both offer good campus life, peer engagement, and value for money.

Recommendation: Prefer IIIT Bhopal ECE for its higher placement rate, improved industry exposure, and location advantage while still keeping IIIT Dharwad as a backup option. All the BEST for a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Career
Hi experts!!! My son have got B.S. Data Science and Artificial Intelligence at IIM Sambalpur Can you please say how is the course and is it worth it ??
Ans: IIM Sambalpur’s B.S. in Data Science and Artificial Intelligence is a new, fully residential four-year undergraduate program designed in accordance with global academic and industry standards. The interdisciplinary curriculum integrates mathematics, statistics, computer science, and management, emphasizing hands-on experience through lab sessions, coding bootcamps, internships, and live industry projects. Multiple exit options (certificate, diploma, degree, honours) align with NEP guidelines, supporting career flexibility and advanced study options. The final year includes a real-world dissertation project. As the program is newly launched, detailed placement records for graduates are still evolving; however, IIM Sambalpur's robust placement cell, reputation, and increasing recruiter participation signal promising opportunities in data science, AI, and analytics sectors. Students benefit from exposure to emerging trends, industry-focused modules, and on-campus research culture, although first batch outcomes may take time to mature. The high-quality faculty, modern infrastructure, and IIM brand together enhance its future prospects.

Recommendation: The course at IIM Sambalpur is worth considering for its strong foundation, industry relevance, and holistic training, especially for aspirants committed to interdisciplinary careers in data science and AI. All the BEST for a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Asked by Anonymous - Aug 18, 2025Hindi
Career
CSE AMU & Electronics @ JPIIT which is better option. Kindly advise.
Ans: AMU’s Computer Science Engineering (CSE) program is highly reputable due to its rigorous curriculum, experienced faculty, established infrastructure, and consistent national ranking. Recent placement rates range from 80% to 93% for CSE over the last three years, with students recruited by top firms including Adobe, Infosys, Deloitte, and Amazon; the majority secure roles in IT, software, data science, and startups. AMU offers active coding clubs, research opportunities, and strong alumni mentorship. In comparison, JPIIT Electronics provides a modern curriculum, state-of-the-art labs, and international collaborations including pathways to MS programs abroad. Placement rates for JPIIT Electronics and ECE have been impressive in select years, reportedly reaching 98%, with core and interdisciplinary job options in electronics, telecom, and IT. Both institutions support internships and project-based learning, but AMU’s national recognition, historic legacy, and technical peer network give a clear edge in both career flexibility and future prospects. Both are affordable, with vibrant campus environments and strong student support systems.

Recommendation: AMU CSE is the better choice for its stronger placement rates, global recognition, richer peer network, and broader career options; JPIIT Electronics may suit niche technology interests only. All the BEST for a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Asked by Anonymous - Aug 18, 2025Hindi
Career
My son got ECE in silchar NIT. Is it good to go with.
Ans: NIT Silchar’s Electronics & Communication program combines a robust curriculum with well-qualified faculty, modern laboratories, and active industry partnerships, ensuring strong academic foundations and hands-on learning. The campus boasts NAAC ‘A’ accreditation, Wi-Fi connectivity, dedicated E-cell, and vibrant technical societies that foster innovation and peer collaboration. Over the past three years, ECE placement rates have ranged between 62% and 78%, with recruiters from core electronics, telecom, and IT sectors regularly participating. Research opportunities in VLSI, signal processing, and IoT are supported by sponsored projects and state-of-the-art facilities. The institute maintains a supportive mentoring system and comprehensive soft-skill training through its placement cell. While Silchar’s remote location may require adjustment, its affordable fee structure, on-campus housing, and strong alumni network balance the trade-offs. Overall, the program’s balanced emphasis on theory, practical exposure, research, and career support makes it a solid choice for long-term growth in ECE disciplines.

Recommendation: NIT Silchar ECE is an excellent option for its comprehensive curriculum, consistent placement record, research focus, and supportive campus environment, making it worthwhile to accept. All the BEST for a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Career
Thank you for your genuine guidance sir, But she got B Tech in computer Engineering (CE) not civil engineering at Zeal college in Pune. Still will you prefer Amrita's Haridwar campus? Amrita has 10 campuses in India among which Coimbatore and Amritapuri are the oldest one where there are no seats available. Comparatively Haridwar is recently( this is first year) launched campus which is under construction. still shall we consider it above zeal? please guide me. thank you.
Ans: Amrita Vishwa Vidyapeetham’s newly inaugurated Haridwar campus offers BTech CSE with a comprehensive curriculum designed for modern industry needs, benefiting from Amrita’s national reputation and A++ NAAC accreditation. While still developing its own placement record, the campus enjoys strong central support—a pan-university placement cell servicing all locations, with 300+ recruiters and 95–100% placement rates at established campuses. Haridwar’s fresh infrastructure, faculty, and resources are backed by central academic standards, student support services, and the opportunity to participate in inter-campus internships, hackathons, and skill training programs. As a first-batch student, you must actively build a strong CV: excel in academics, enroll in technical workshops, master coding and interviews, collaborate with established campus networks, and seek out online certifications and real-world projects. Networking within Amrita’s multi-campus community and leveraging alumni connections are essential to compete for both campus and off-campus placements.

Recommendation: The Haridwar campus is a promising choice, provided you proactively develop skills, leverage university resources, and gain practical exposure for competitive placement outcomes. All the BEST for a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |10366 Answers  |Ask -

Career Counsellor - Answered on Aug 18, 2025

Asked by Anonymous - Aug 16, 2025Hindi
Career
Sir should I consider Amrita Vishwa Vidyapeetham newly inaugurated Haridwar Campus for B tech CSE as this will be it's 1st year. Or any other suggestions because now the admissions in most of the colleges are about to close.
Ans: Amrita Vishwa Vidyapeetham’s newly inaugurated Haridwar campus offers BTech CSE with a comprehensive curriculum designed for modern industry needs, benefiting from Amrita’s national reputation and A++ NAAC accreditation. While still developing its own placement record, the campus enjoys strong central support—a pan-university placement cell servicing all locations, with 300+ recruiters and 95–100% placement rates at established campuses. Haridwar’s fresh infrastructure, faculty, and resources are backed by central academic standards, student support services, and the opportunity to participate in inter-campus internships, hackathons, and skill training programs. As a first-batch student, you must actively build a strong CV: excel in academics, enroll in technical workshops, master coding and interviews, collaborate with established campus networks, and seek out online certifications and real-world projects. Networking within Amrita’s multi-campus community and leveraging alumni connections are essential to compete for both campus and off-campus placements.

Recommendation: The Haridwar campus is a promising choice, provided you proactively develop skills, leverage university resources, and gain practical exposure for competitive placement outcomes. All the BEST for a Prosperous Future!

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

...Read more

Samraat

Samraat Jadhav  |2423 Answers  |Ask -

Stock Market Expert - Answered on Aug 18, 2025

Asked by Anonymous - Aug 15, 2025Hindi
Money
I have debt of rs. 20lakhs which include pl and credit card bill payments and my monthly income is 28k only please suggest how to I am debt free
Ans: 1. Assess and List Out All Debts
List each loan and credit card with:
• Amount owed
• Monthly EMI or minimum payment
• Interest rate
This will help you understand which debts are costing you the most and need to be prioritized.

2. Create a Bare-bones Budget
• List your essential expenses only: rent, food, utilities, transportation.
• Allocate most of your income toward debt repayment: Many people use a “60-30-10” rule—spending 60% of income on debts, 30% on essentials, and 10% on minor needs or savings, if possible.
• Cut all non-essential expenses (entertainment, eating out, subscriptions).

3. Prioritize Payments
Pay expensive loans first: Focus on debts with the highest interest rate (usually credit cards)—this is called the Avalanche Method.
Always pay at least the minimum on all debts to avoid penalty charges or further damage to your credit score.

4. Talk to Your Lenders
Request lower interest rates or extended loan tenures. Some banks and NBFCs might offer hardship or restructuring programs.
Ask about converting credit card balances into loans with lower EMIs.
Check if you qualify for a debt consolidation loan to combine all debts into one EMI at a lower rate.

5. Explore Additional Income Sources
Take up a side job or gig: tutoring, food delivery, freelancing, weekend work, etc.
Sell unused items online.
Any extra amount should go directly to debt repayment.

6. Avoid Taking On New Debt
Don’t use credit cards or personal loans for discretionary spending.
Avoid “payday loans” or instant loans with high interest.

Sample Monthly Action Plan
Step Amount Allocated
Income (per month) ?28,000
Essentials (rent, food, etc.) ~?8,000-?10,000
Debt repayments ?16,800-?18,000+ (60%+)
Other (emergency savings) ?0-?2,000
If your current minimum payments are more than your income allows, you must negotiate with lenders, as defaulting will further hurt your financial health and credit score.

Mindset Tips
• Celebrate small wins; every rupee paid reduces your stress.
• Stick to your plan—discipline will help you get through this.
• Don’t lose hope—many have successfully cleared similar debts with patience and perseverance.

Final Note
Your current income is not sufficient to clear such a large debt in a short time. Becoming debt-free will require:
• Aggressively cutting expenses
• Increasing your income wherever possible
• Negotiating with lenders for the best possible repayment terms
Seek help when needed and stay disciplined throughout the journey.

...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.

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