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Samraat

Samraat Jadhav  |2126 Answers  |Ask -

Stock Market Expert - Answered on Jul 25, 2023

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
SUBHAS Question by SUBHAS on Apr 13, 2023Hindi
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I have 100 shares of Bandhan Bank at 433.00.Should I hold

Ans: yes

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
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Ramalingam

Ramalingam Kalirajan  |7296 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 23, 2024

Asked by Anonymous - Dec 22, 2024Hindi
Money
hello gurus, need advise on next step: I have 3 SIPs: Two 5k each and one 1.5k (total sum atm is 4 lakh) ppf ~ 11 lakh stocks worth ~ 3.4 lakh Currently i have no loans i am unmarried Dont own any real estate or vehicle. monthly expenses: 40-50k due to frequent travels salary in hand: 1.2 lakh i am having problem in saving apart from what has been mention above, i have a goal for next 3-4 month to create emergency fund. Please what should be done apart from my goal?
Ans: You have a stable financial base with SIPs, PPF, and stocks. Your goal to create an emergency fund in 3-4 months is practical and timely. However, saving more requires optimising expenses, investments, and setting clear financial priorities.

Let us assess your current finances and provide a detailed plan for your next steps.

Current Financial Overview
SIP Investments

Three SIPs totaling Rs. 11,500 per month with a current value of Rs. 4 lakhs.
SIPs provide disciplined equity investments with long-term growth potential.
PPF Investment

Rs. 11 lakhs in PPF is a secure and tax-efficient investment.
Continue annual contributions to maximise benefits.
Stocks

Rs. 3.4 lakhs in stocks is a good exposure to direct equities.
Ensure your portfolio has diversified and fundamentally strong stocks.
No Liabilities

You are debt-free, giving flexibility in managing your finances.
Monthly Expenses

Monthly expenses of Rs. 40,000-50,000 are reasonable given your travel needs.
Savings are limited after covering expenses and investments.
Income

Rs. 1.2 lakh in-hand salary provides scope to increase savings.
Building an Emergency Fund
Set a Target Amount

Aim for 6-12 months of expenses in your emergency fund.
Based on Rs. 50,000 monthly expenses, target Rs. 3-6 lakhs.
Choose the Right Investment Vehicle

Use liquid mutual funds for better returns and accessibility.
Alternatively, consider a high-yield savings account.
Allocate Monthly Savings

Save Rs. 40,000-50,000 monthly over the next 4 months.
Redirect discretionary travel expenses towards this goal temporarily.
Maintain Liquidity

Avoid locking funds in long-term investments for the emergency fund.
Optimising Your Savings
Review Travel and Discretionary Spending

Track travel expenses and identify areas for reduction.
Allocate savings from reduced discretionary spending to investments.
Set a Monthly Savings Target

Aim to save at least 30% of your monthly income (Rs. 36,000).
Automate savings to ensure consistency.
Increase SIP Contributions

After building your emergency fund, increase SIPs by 10%-15%.
Diversify into actively managed funds for consistent performance.
Leverage Salary Hikes

Allocate future salary increments to savings and investments.
Enhancing Your Investment Strategy
Diversify Equity Portfolio

Ensure your SIP portfolio includes large-cap, mid-cap, and hybrid funds.
Avoid index funds; actively managed funds outperform in volatile markets.
Add Debt Instruments

Invest in corporate bonds or short-term debt funds for stability.
This balances your equity-heavy portfolio.
Continue PPF Contributions

Maximise annual contributions (Rs. 1.5 lakhs) to grow the corpus tax-free.
Review Direct Stocks

Diversify your stock portfolio to minimise risk.
Avoid high-risk or speculative stocks.
Planning for Future Goals
Marriage and Vehicle Purchase

Start a goal-specific SIP for future milestones like marriage or buying a vehicle.
Allocate Rs. 10,000 monthly for these goals.
Retirement Planning

Begin planning for retirement through equity and balanced funds.
Target a corpus that supports post-retirement expenses adjusted for inflation.
Tax Efficiency

Plan investments to optimise tax savings under Section 80C and 80D.
Insurance Coverage
Health Insurance

Ensure adequate health insurance coverage beyond employer-provided plans.
A policy of Rs. 5-10 lakhs is essential for unforeseen medical expenses.
Life Insurance

Term insurance is unnecessary if you have no dependents currently.
Consider purchasing a term plan when you have dependents in the future.
Key Milestones
Emergency Fund

Achieve a Rs. 3-6 lakhs emergency fund in 3-4 months.
Post-Emergency Fund Investments

Redirect surplus income to increase SIP contributions.
Long-Term Planning

Regularly review and rebalance your investment portfolio annually.
Final Insights
Building an emergency fund should be your immediate priority. Post that, focus on optimising savings, diversifying investments, and planning for long-term goals like retirement. With discipline and a well-structured plan, you can achieve financial independence while enjoying your current lifestyle.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7296 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 23, 2024

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Hello Sir, Following your responses to various queries and liked the way you have provided detailed response. I wanted to check with you on how ideal or effective my investment could help me retire at 50 or 52. I’m 45 surviving with wife (36) and 3 kids (9 yrs, 7 yrs and 1 year). Currently I have about 50 lakhs invested various equity mutual funds (High Risk Category funds) and about 60 lakhs in EPF Own house, no rental income, no Home Loan, Car Loan of 35,000 per month for next 15 months I’m investing 1 Lakh per month on equity mutual funds and plan to increase 10 to 15% year on year. Based on my current monthly expenses (1,40,000) per month. Would I able to reach a corpus which could help me with monthly payout of 1.4 lakhs (inflation adjusted withdrawal) from my 50 or 52? I would want to withdraw 7% per year of the corpus and assuming ROI at 12 to 14% Education, Marriage expenses for 3 kids are primary expenses Would 2.5 crore corpus be sufficient to retire at 50 or 52? Please provide your guidance
Ans: Your financial plan reflects discipline and foresight. Retiring at 50 or 52 while providing for your family is achievable with a strategic approach. Let us evaluate your current investments, income, and goals to provide actionable insights.

Current Financial Status
Equity Mutual Funds
Rs. 50 lakhs invested in high-risk equity mutual funds offers strong growth potential. However, diversifying into moderately aggressive funds could reduce risk.

EPF Savings
Rs. 60 lakhs in EPF is a stable and secure component of your retirement corpus.

Ongoing Loan
A car loan of Rs. 35,000 per month for the next 15 months reduces cash flow temporarily. After repayment, redirect this amount to investments.

Monthly SIPs
You invest Rs. 1 lakh per month in equity mutual funds with a plan to increase it by 10%-15% yearly. This ensures a growing corpus.

Expenses
Your monthly expense of Rs. 1.4 lakhs (current value) is a key driver for corpus estimation.

Corpus Required for Retirement
Expense Inflation
Assuming inflation at 6%-7%, your Rs. 1.4 lakhs expense may double in 12-15 years.

Corpus Withdrawal Rate
A 7% annual withdrawal rate is high. A rate of 4%-5% is more sustainable.

ROI Assumptions
Targeting a 12%-14% return from equity funds post-retirement is optimistic. A blended portfolio with equity and debt may yield around 9%-10%.

Estimated Corpus
Rs. 2.5 crores might not be sufficient to meet your retirement goals and children’s future needs. A corpus of Rs. 4.5-5 crores would be more realistic.

Recommendations to Achieve Your Goals
1. Optimise Mutual Fund Portfolio
Diversify into large-cap and balanced advantage funds for moderate growth and stability.

Allocate 60%-70% to equity and 30%-40% to debt as you near retirement.

Continue investing in actively managed funds through SIPs. Avoid index funds due to lack of active management and lower adaptability.

2. Increase SIP Contributions
Increase SIPs by 15%-20% annually instead of 10%-15%.

Redirect Rs. 35,000 (post-loan repayment) to mutual funds or PPF.

3. Children’s Education and Marriage Planning
Set aside a separate corpus for your children’s education and marriage.

Use a combination of equity mutual funds and Sukanya Samriddhi Yojana (for daughters).

Estimate and adjust based on inflation.

4. Debt and Contingency Planning
Allocate Rs. 20 lakhs to debt funds or fixed deposits for emergencies.

Keep 6-12 months of expenses in a liquid fund for contingencies.

5. Tax Efficiency
Plan withdrawals strategically to minimise taxes.

Long-term equity fund gains over Rs. 1.25 lakhs are taxed at 12.5%.

EPF withdrawals are tax-free after five years of continuous service.

6. Post-Retirement Investments
Gradually shift to hybrid funds or dividend-yielding funds post-retirement.

Avoid high-risk equity funds after age 50.

7. Health Insurance
Ensure you and your family have adequate health coverage.

This prevents dipping into your retirement corpus for medical expenses.

Key Milestones
At Age 47 (Post Loan)
Redirect Rs. 35,000 monthly to equity funds.

Aim for Rs. 2 crore corpus by 47 through increased SIPs and returns.

At Age 50
Evaluate corpus status and adjust allocations to reduce risk.

Begin transitioning equity-heavy portfolio to balanced or hybrid funds.

Post Retirement
Maintain a systematic withdrawal plan (SWP) for monthly income.

Monitor expenses and investment performance annually.

Final Insights
A corpus of Rs. 2.5 crores is insufficient for your goals. Increase SIPs, diversify investments, and plan for children’s education separately. With disciplined savings and investment, you can comfortably retire at 50 or 52.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7296 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 23, 2024

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I want to invest 10lakhs for my kids education(3months old right now) and withdraw school fee from the returns. I will try not to use this money for any other purpose. My plan is to invest this amount in liquid fund and start a STP to in Nifty 50 index fund(50%), midcap Momentum fund(25%), Small cap momentum fund(25%). I want to keep this money only for my kids education purpose only. please let me know whether this is good idea or not. if it is good idea, please suggest fund allocation is correct or not.
Ans: Your plan to invest Rs. 10 lakhs exclusively for your child’s education shows foresight and commitment. Let us assess your approach and suggest refinements for better alignment with your goals.

Assessment of Your Current Plan
Liquid Fund for STP
Using a liquid fund for the initial investment is prudent. It provides stability and ensures systematic allocation.

Allocation to Index Fund (50%)
An index fund like Nifty 50 has lower costs but lacks active management. Actively managed large-cap funds may deliver better returns during market fluctuations.

Midcap and Small Cap Momentum Funds (25% Each)
Momentum funds can be volatile and require careful monitoring. This allocation might expose your portfolio to higher risk. A balanced mix of midcap and small-cap funds is essential to manage volatility.

Education-Only Approach
Keeping this fund solely for your child’s education is wise. It ensures you stay focused on the goal.

Suggestions for Fund Allocation
Equity Mutual Funds for Growth
Allocate 40%-50% to actively managed large-cap funds. These funds provide stability and reasonable growth.

Midcap Funds for Higher Returns
Allocate 25% to midcap funds. These funds offer a balance between risk and growth.

Small-Cap Funds for Long-Term Growth
Allocate 15%-20% to small-cap funds. Small caps perform well over 7-10 years but are riskier.

Debt Funds for Stability
Allocate 10%-15% to a hybrid or debt fund. This ensures liquidity and lower portfolio risk.

Benefits of Actively Managed Funds Over Index Funds
Outperformance During Volatile Markets
Actively managed funds can outperform during downturns. They protect your investment from large market corrections.

Professional Management
Expert fund managers adjust portfolios based on market conditions. This enhances returns over time.

Customisation for Goals
Actively managed funds align better with specific financial goals like education.

Taxation Awareness
Gains from equity funds above Rs. 1.25 lakhs are taxed at 12.5%. Withdrawals should be planned to reduce tax liability.

Tax Implications
Liquid Fund Withdrawals
Interest from liquid funds is taxed per your slab rate. Limit unnecessary withdrawals to save on taxes.

Equity Fund Gains
Long-term capital gains over Rs. 1.25 lakhs are taxed at 12.5%. Avoid frequent redemptions.

Debt Fund Withdrawals
Debt funds are taxed per your income slab for short-term gains. Withdraw selectively to manage taxes effectively.

Regular Monitoring
Track Fund Performance
Review fund performance every six months. Replace underperforming funds if needed.

Adjust Allocations
Rebalance your portfolio annually. Adjust allocations to align with market changes.

Keep the Goal in Mind
Ensure all actions align with the purpose of funding your child’s education.

Emergency Provisions
Emergency Fund
Do not compromise your emergency fund for this investment. Ensure Rs. 3-6 lakhs are set aside.

Health Insurance
Ensure your health cover is adequate. This prevents dipping into your child’s education fund for medical needs.

Final Insights
Your commitment to securing your child’s education is admirable. Refining your plan with actively managed funds can improve returns and manage risks effectively. Regular reviews and disciplined investing will help you achieve your goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7296 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 23, 2024

Asked by Anonymous - Dec 23, 2024Hindi
Money
Dear Sir, I am 50 years old and planning to retire by 2026. I have 76 lakhs in PPF, 40 lakhs in FD, 52 lakhs in NSC, 6.5 lakhs in LIC, 60 lakhs in MF, 25 lakhs in Post Office MIS, 26 lakhs in EPF. Please advise how to generate 1.5 lakhs /month for the next 30 years? Currently My monthly expense is 70k, stay in own house with no loan/liabilities. Apart from my monthly expenses, I need to keep substantial amount for my son's study & marriage in future.
Ans: Your financial discipline is impressive, and you have a strong portfolio. To generate Rs. 1.5 lakhs monthly for 30 years while considering your goals, here’s a comprehensive approach:

Asset Allocation and Risk Assessment
PPF (Rs. 76 lakhs)
PPF is a low-risk, tax-free option. It offers stability and can be used for long-term needs.

FD (Rs. 40 lakhs)
FDs provide safety but lower post-tax returns. Consider partially shifting to higher-yielding options.

NSC (Rs. 52 lakhs)
NSC is risk-free and secure. Use it strategically for medium-term needs.

LIC (Rs. 6.5 lakhs)
Traditional LIC policies have lower returns. Evaluate surrender value and reinvest in mutual funds.

Mutual Funds (Rs. 60 lakhs)
This portfolio can generate higher returns but comes with moderate risk.

Post Office MIS (Rs. 25 lakhs)
Offers steady monthly income. Retain as part of your fixed-income allocation.

EPF (Rs. 26 lakhs)
EPF provides tax-free growth. Use this for long-term stability.

Monthly Income Strategy
Systematic Withdrawal Plan (SWP) from Mutual Funds
Allocate Rs. 40 lakhs to equity mutual funds. Use SWP for monthly income. This can balance growth and cash flow.

Post Office MIS
Utilize MIS for a stable Rs. 15,000-20,000 monthly income.

Interest from FDs and NSCs
Keep a portion of FDs and NSCs for regular interest payouts.

PPF and EPF Maturity
Use PPF and EPF for long-term monthly withdrawals. This ensures stability in later years.

Allocating Funds for Future Goals
Son’s Education
Set aside Rs. 50 lakhs in hybrid mutual funds. This will grow and meet educational expenses in 5-7 years.

Son’s Marriage
Allocate Rs. 30 lakhs in balanced advantage funds. These funds offer moderate growth with lower risk.

Managing Taxes
Equity Mutual Funds
Long-term gains over Rs. 1.25 lakhs are taxed at 12.5%. Plan withdrawals to minimize taxes.

Debt Mutual Funds
Gains are taxed as per your slab. Choose funds with efficient tax management.

PPF and EPF
Both are tax-free. They are ideal for withdrawals in later stages of retirement.

LIC
If surrendering, evaluate tax implications before reinvesting.

Inflation Protection
Equity Allocation
Allocate 40%-50% of your portfolio to equity. It combats inflation and grows wealth.

Review Regularly
Adjust your portfolio every year. Ensure it meets inflation-adjusted goals.

Emergency and Health Provisions
Emergency Fund
Keep Rs. 10 lakhs as a liquid fund for emergencies. This ensures quick access when needed.

Health Insurance
Review your health insurance. Ensure it covers major illnesses and inflation-adjusted medical costs.

Steps for LIC Policy
Assess the surrender value of your LIC policy.
Reinvest the amount in a diversified mutual fund portfolio.
This will generate higher returns for long-term needs.
Other Recommendations
Avoid Real Estate
Real estate is illiquid and unsuitable for retirement income. Focus on financial assets instead.

Work with a Certified Financial Planner
A CFP can help you optimize your portfolio and align with your goals.

Finally
Your portfolio is strong, but diversification is key. Ensure a balance between risk and returns. Plan withdrawals systematically to sustain income for 30 years. Regularly review your plan with a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Anu

Anu Krishna  |1406 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 23, 2024

Asked by Anonymous - Dec 22, 2024Hindi
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Relationship
Hello Sir/Madam. I am 42 years old, married with two children. I live with my single mother, who is 74 years old, in her house. My brother, who is 48 years old, lives separately with his family about 10 kilometers away. Whenever my mother is hospitalized, sick, or in need of any support, my brother and sister-in-law neither assist us financially nor with their physical presence. They provide numerous excuses for not helping. Only after much family persuasion does my brother agree to help. My wife and I are the only ones who support my mother financially and physically whenever needed. Conversely, my mother and I have always supported my brother financially and physically whenever required. My mother does not like staying with my brother and sister-in-law. However, she maintains a good relationship with them as they do not retaliate against her. My mother often interferes with our eating habits, especially regarding our weekend outings for leisure or movies. When I wanted to renovate the kitchen in my newly purchased house, she strongly objected. My mother insists that her opinion matters; otherwise, there is no point in having a relationship among us. Sometimes, she even imposes my brother and sister-in-law’s suggestions on us. Whenever I oppose her views, it irritates her, and we start quarreling. My mother then curses us, saying that if her suggestions are not implemented, it will cause trouble for us in the future. It often ends with her saying that she is dead to us and wants to end our relationship. We reconcile after a long time. Hence, we sometimes feel that our freedom is restricted. I tried to explain to my mother that a true relationship is one where prompt support is provided when needed, not when someone opposes her views. I feel that instead of talking about breaking the relationship with me during our fights, my mother should discuss breaking the relationship with my brother and sister-in-law, and I have often discussed this with her. But my mother does not seem to understand and feels that she needs to fulfill her duties as a mother. I am planning to relocate to my own house next year, which is about 60 kilometers away. I have decided to break my relationship with my brother and sister-in-law as I do not want any superficial relationship. Please help as I am tired of quarreling with my mother.
Ans: Dear Anonymous,
So, you find it easier to abandon your family because your brother and sister-in-law don't pitch in, your mother is interfering, your mother according to you should break ties with her other child!
Do you not sense the weight of expectations is the one actually ruining your peace of mind and hence your relationships? Yes, of course, your sibling can pitch in more; did it not occur to you that you can talk to him and his wife and actually request them to be more hands-on?
And why should your mother break ties with your brother? Is that the way you will feel validated by her OR that will show you that she recognizes what you do for her?
Do remember, never do anything for anyone (within relationships) with an expectation that you will get something in return. Selflessness is what will ensure that you have better quality relationships.
If you feel at some point that you are being taken for granted, then say so and set things right. Indulging in this kind of 'demand' that things must be a particular way is not going to happen especially when you come from a space where the ultimate deed is breaking relationships.
It takes one impulsive move to break relationships, so tread carefully, keep your emotions away from fueling your expectations and it will actually let see things for what they truly are. This will enable you take the next steps in a very meaningful way where no bridges are burned.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1406 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 23, 2024

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Relationship
Dear Anu I have been married for 17 years, and since around 2017, I have been living away from home for work. Recently, I have been reflecting on whether there is genuine love between my wife and me. When I tried to draw a conclusion, I realized that, yes, we do have true love. But then, why don’t our thoughts align? Why is there always a difference between the way I think and the way she thinks? And is this difference gradually eroding the respect in our relationship? You might say that since we are two different individuals, having differing opinions is natural. But how does one determine which opinion is right and which is wrong? How does one make that judgment? There have been several instances in our life where I hold my wife responsible for certain things, and in some matters, she holds me responsible. The root of this lies in the fact that I have faced the long-term consequences of certain actions in the past and continue to experience them, which influences my perspective. This is how I see it. At the same time, another thought crosses my mind: she’s my own person, so perhaps I should overlook minor shortcomings and make adjustments. But then, sometimes my heart accepts this reasoning, and at other times, it doesn’t. Why does this happen? I can’t figure it out, nor can I reach a definitive conclusion.
Ans: Dear Nilesh,
The Honeymoon period is long over; maybe you didn't get a chance to notice it.
Agreeing on everything and anything and literally being in alignment most times is a very romanticized version of what married couples are!
It is not uncommon to align but it's not necessary that a couple must align on thoughts and action. So, it's better to understand and accept it. If differences have begun to eat away the peace inside the marriage, that is when you need to step up and do something about it.
And who's to say who is right or wrong; it's only a matter of perspective and that comes from the way the person has lived and understood life's experiences.
If the core values match, let differences be...Respect those differences as that is what makes the other person who they are. If it starts to clash, sit down and have a mature chat about it to bring it to a mid-point and then you can laugh about it together.
Marriage evolves over a period of time and to move with it is maturity; how can you expect things to be the same or the way you think it should be? That is not how relationships and marriage work; acceptance of this fact that marriage evolves and that differences will come about even more seems to be wise in your case.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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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