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Can I build a house costing 50 lakhs by the age of 28 or 29, with a potential increase to 60-70 lakhs?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 02, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Oct 02, 2024Hindi
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I am 24 now and I have completed my masters right now. Will I be able to build a new home around a budget of atleast 50 lakhs when I turn 28 or 29? Will I be able to increase my budget even higher to 60-70 lakhs?

Ans: If you start a monthly sip for 50 K now in a pure equity fund then you expect to accumulate a corpus of around 70 L in 7 years time frame.

If you do it for 5 years you may still have corpus of around 42 L while balance could be funded through a home loan.

A modest return of 13% considered.

Happy Investing!!

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

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.
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  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

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Hi I'm 29 yrs old man with salary of 60k month, I wish to built a house by 2-3yrs from now and create a wealth for my retirement by 40 yrs of age, plz help me through it how should I be able to do that?
Ans: It's fantastic that you're thinking ahead and planning for your future. Building a house and creating wealth for retirement are significant goals, and with careful planning, you can achieve them. Here's some guidance to help you along the way:

Firstly, consider starting by creating a detailed financial plan outlining your current financial situation, your goals, and a roadmap to achieve them. This will help you stay organized and focused on your objectives.

To save up for your house in 2-3 years, you'll need to start setting aside a portion of your monthly income. Calculate how much you'll need for the down payment and closing costs, and then work out how much you need to save each month to reach that goal.

Consider investing your savings in low-risk, liquid instruments like fixed deposits or short-term debt funds to ensure that your money is easily accessible when you're ready to buy your house.

For your retirement goal, starting early is key. Since you're aiming to retire by 40, you'll need to prioritize saving and investing aggressively. Maximize contributions to retirement accounts like the Employee Provident Fund (EPF) or the National Pension System (NPS) to take advantage of tax benefits and long-term growth potential.

Additionally, consider investing in a diversified portfolio of equity mutual funds or stocks to build wealth over the long term. While the stock market can be volatile, historically, it has provided higher returns compared to other asset classes over extended periods.

Regularly review and adjust your financial plan as needed to stay on track towards your goals. Remember, consistency and discipline are crucial when it comes to achieving financial success.

Keep up the great work, and don't hesitate to seek advice from a Certified Financial Planner if you need assistance in fine-tuning your financial strategy.

Best of luck on your journey to homeownership and retirement!

..Read more

Ramalingam

Ramalingam Kalirajan  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 10, 2025

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Hello...I am planning to construct a home in next 5 years. My monthly salary is only 35000. I dont have any idea how to make my dream into a success. Please give me an idea how I can save my money to make a home with a budget of 30 lakhs.
Ans: Building a home is a big financial goal. You want to construct a house worth Rs 30 lakh in 5 years. Your monthly salary is Rs 35,000. With the right savings and investment plan, you can make this dream a reality.

 

Step 1: Understanding the Total Budget Requirement
The house construction cost is Rs 30 lakh.

You will need to save or arrange this amount in 5 years.

Costs may increase due to inflation.

Having a buffer amount is important for unexpected expenses.

 

Step 2: Evaluating Your Savings Capacity
Your monthly income is Rs 35,000. The goal is to save a portion consistently.

 

First, identify your essential monthly expenses.

Reduce unnecessary spending to increase savings.

The more you save, the less you need to borrow.

 

Step 3: Creating a Dedicated Home Fund
Open a separate investment account for home savings.

Invest in growth-oriented mutual funds.

Avoid keeping all money in fixed deposits due to lower returns.

 

Step 4: Choosing the Right Investment Strategy
A 5-year investment plan should have a balance of growth and safety.

 

1. Avoid Index Funds and ETFs
Index funds cannot adjust to market risks.

Actively managed funds perform better in volatile markets.

 

2. Avoid Direct Mutual Funds
Direct funds need market tracking and knowledge.

Investing through a Certified Financial Planner (CFP) ensures proper management.

 

3. Maintain Liquidity for Construction Costs
Keep some funds in liquid investments for easy access.

Avoid locking money in long-term illiquid assets.

 

Step 5: Considering a Home Loan as an Option
If saving Rs 30 lakh is difficult, a home loan can help.

 

Banks may provide up to 80% of the home cost.

Your EMI should not exceed 40% of your income.

Higher down payment reduces loan burden.

A shorter loan tenure saves interest costs.

 

Step 6: Cutting Expenses to Boost Savings
Reduce unnecessary spending like eating out and entertainment.

Avoid impulse purchases.

Use discounts and cashback options to save more.

A simple lifestyle today helps in building your dream home sooner.

 

Step 7: Reviewing Your Plan Every Year
Track savings and investments regularly.

Adjust plans if income increases or expenses change.

Consult a Certified Financial Planner (CFP) for guidance.

 

Finally
A Rs 30 lakh home in 5 years is possible with proper planning. Focus on consistent savings, smart investments, and controlled spending. If needed, a home loan can bridge the gap. With discipline and patience, your dream home can become a reality.

 

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam

Ramalingam Kalirajan  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 07, 2025

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If I start my career @ 30 age earning monthly 60k at what age I can afford to buy a house in semi urban
Ans: Planning your first house purchase early shows strong financial awareness. Let’s explore this in a full, 360-degree way — keeping everything simple, realistic, and structured for Indian context.

Your Starting Point
You are 30 years old now.

You are earning Rs. 60,000 per month.

You are interested in buying a house in a semi-urban area.

We will consider affordability, down payment, EMI, lifestyle, and savings—all combined.

Step 1: Understand Realistic Budget for a Semi-Urban House
In most semi-urban towns, a decent house costs between Rs. 25L to Rs. 45L.

Let us take Rs. 35L as a middle number for this estimate.

You should ideally make a down payment of at least 20%.

That is around Rs. 7L down payment, and the rest by home loan.

Step 2: Estimate Comfortable EMI Based on Your Income
Banks allow 40% of salary as EMI. That is Rs. 24,000 per month.

You can get a loan of around Rs. 25L to Rs. 28L, depending on tenure and interest rate.

This is only possible if you have no other loans, like personal or car loan.

So, house cost around Rs. 30L to Rs. 35L is within your reach, if you plan well.

Step 3: Monthly Budget Planning Is the Key
Let’s divide your current Rs. 60,000 salary in a smart way.

Essentials (rent, food, transport): Rs. 25,000

SIP and emergency savings: Rs. 10,000

Lifestyle (mobile, clothes, outings): Rs. 5,000

Savings for house down payment: Rs. 15,000

Balance for unexpected needs: Rs. 5,000

This way, in 4 years, you can save Rs. 7L to Rs. 8L for the down payment.

Step 4: Create Emergency Reserve First
Before home purchase, keep Rs. 1.5L to Rs. 2L in bank or liquid fund.

This gives you strength if job or income changes.

Do not empty all savings for house down payment.

Your emergency fund must be separate from house funds.

Step 5: Build Down Payment Through SIP
Start monthly SIP of Rs. 10,000 to Rs. 15,000 in a conservative hybrid or balanced mutual fund.

Invest through MFD guided by a Certified Financial Planner.

Avoid direct plans or random apps. You need handholding.

In 4 years, SIP can grow your money slowly and safely.

Avoid investing in risky stocks for this purpose.

Step 6: Timing for House Purchase
Now let’s match savings with property goal.

By age 34 or 35, you can save enough for Rs. 7L to Rs. 8L down payment.

If you maintain job stability, your loan eligibility will also rise by that time.

Bank will ask for salary slips, Form-16, IT returns, and account statements.

You will also need to pay stamp duty, registration and interiors.

So add another Rs. 1.5L to Rs. 2L buffer for extra costs.

Step 7: Understand Costs After Buying House
EMI around Rs. 20,000 to Rs. 24,000 per month is manageable with Rs. 60K salary.

Avoid stretching EMI to more than 40% of salary.

After EMI starts, reduce other spending like gadgets or travel.

Remember to continue SIP for long term wealth building even after house purchase.

Home loan also gives you tax benefits under 80C and 24B.

Step 8: Factors That Can Delay or Accelerate Your Goal
If your salary increases fast, you can buy before age 34.

If you lose job or take a break, house goal may get delayed.

If you get bonus or parental support, you can advance your plan.

If you start freelancing without fixed income, banks may not give you a home loan easily.

Step 9: Other Non-Financial Factors to Consider
Buy only if you plan to stay in same city or town for 5+ years.

Don’t buy if job transfers are frequent or you may move abroad.

Buy only when you feel mentally and financially confident.

Also check legal title and local market trends before booking.

Don’t fall for high-rise dreams or peer pressure.

What You Should Avoid
Don’t take home loan before having emergency fund and job stability.

Don’t buy house just to save tax.

Don’t touch retirement savings or PPF for down payment.

Don’t skip insurance protection — buy term insurance and health cover.

Don’t expect house value to double in 5 years. Growth is slow in semi-urban.

Final Insights
If you start saving now, you can afford to buy your first house in 4 to 5 years. That means you can comfortably own a house by age 34 or 35.

But don’t rush. First, build habits of monthly SIP, emergency savings, and debt-free living.

Your income, savings discipline, and life goals must all align before you take the house step. Buy only when you are truly ready emotionally and financially.

You are on the right path by asking this now. Stay consistent and guided by a Certified Financial Planner.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Ramalingam

Ramalingam Kalirajan  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2025

Asked by Anonymous - May 25, 2025
Money
Hi Sir, I'm 34 unmarried female with partial responsibility for parents (they have pension) but full responsibility for another adult forever who is 36 years old at this time due to certain medical issues. My goal is to be able to buy a house in metro like Pune/Bengaluru where current prices have skyrocketed to 1.2 cr, in the next 2-3 years. My current savings and income is 13 L in FD, 7L in PPF, and 4L in MF. Current salary is 1.5L per month where my expenses are 20k monthly rent, 10-15k in total for other expenses like food/living etc. Monthly MF investment is 35k and 12.5k for ppf and i save as and when possible for FD. At this time slightly worried if I'll be able to purchase a home at all. Also I do not have any other loans, please help.
Ans: You are doing a good job managing your income, savings, and responsibilities.

Your goal to buy a house in a metro is clear.

But we need to go step-by-step to see if it fits into your bigger financial life.

We also need to check the long-term impact of such a decision.

Let’s analyse everything in a simple, structured, and detailed way.

Let’s look at your money from a 360-degree view.

Let us begin.

Income and Expense Control

Monthly salary of Rs. 1.5 lakhs is a strong base.

Your rent is Rs. 20,000 and other expenses are Rs. 15,000 max.

Total expenses are around Rs. 35,000 per month only.

This gives you a very good surplus of Rs. 1.15 lakhs monthly.

That level of saving shows strong discipline and financial maturity.

This is very positive especially as you have responsibilities too.

Current Investments and Asset Mix

Rs. 13 lakhs in fixed deposits is a safety cushion.

Rs. 7 lakhs in PPF is useful for long-term stability.

Rs. 4 lakhs in mutual funds is a good start for wealth creation.

Monthly SIP of Rs. 35,000 is aggressive and well placed.

PPF investment of Rs. 12,500 monthly is also consistent.

You are spreading risk and ensuring short and long term goals.

However, fixed deposits will not beat inflation in the long run.

Understanding the Housing Goal

Your target home budget is Rs. 1.2 crore in a metro.

This is a huge goal considering your current savings.

With 13L FD + 7L PPF + 4L MF = Rs. 24 lakhs total now.

It is hard to buy a home of Rs. 1.2 crore fully from this.

You may need to take a home loan of Rs. 80 lakhs or more.

Loan EMI on this amount will be around Rs. 65,000 to Rs. 70,000 monthly.

This can affect your MF SIP and other savings.

You also need to pay 10% to 20% down payment upfront.

That is around Rs. 24 lakhs minimum, which is what you already have.

But if you pay it all, there will be no emergency fund left.

Home Loan and EMI Risk Assessment

Taking such a large loan will bring financial pressure.

Your current surplus will drop quickly with EMI payments.

You may have to stop or reduce your SIP and PPF.

That will impact your long-term financial independence.

You are also responsible for one adult dependent lifelong.

So you need a strong safety net for medical and lifestyle costs.

A home loan will reduce your flexibility for that.

Your job is in the private sector, which can have income uncertainty.

Why Owning Property May Not Be Best Now

Buying a house looks attractive, but comes with hidden costs.

Stamp duty, registration, maintenance, repairs, interiors, property tax, etc.

These can total up to 10%-12% of home value over time.

Buying locks up your capital and reduces liquidity.

Rent is only Rs. 20,000 now, which is manageable.

You also have freedom to move for job opportunities.

Home ownership can tie you down, especially early in life.

Better to delay this until other goals are secure.

Investment Strategy Review

Mutual funds help you beat inflation and grow wealth.

Continue with your Rs. 35,000 SIP as long as possible.

Don’t reduce SIP to save for property down payment now.

PPF will build your tax-free corpus, so continue with Rs. 12,500 monthly.

Your fixed deposits can be slowly reduced.

Shift them into short duration mutual funds for better returns.

But keep Rs. 3 to 5 lakhs aside as emergency fund always.

Don’t go fully into equity without having a buffer.

Real Estate as Investment? No.

Property as investment has low liquidity.

Difficult to sell quickly if needed.

High cost of buying and selling.

Price appreciation not guaranteed.

Better to build wealth using mutual funds with Certified Financial Planner.

Action Plan for Next 2 to 3 Years

Delay home buying decision for now.

Focus on building Rs. 40-50 lakhs liquid net worth.

Keep SIP + PPF going without stopping.

Shift part of FD to balanced or hybrid mutual funds.

Review SIP portfolio yearly with Certified Financial Planner.

Build emergency fund for 6 months expenses minimum.

Create term insurance of Rs. 1 crore if not yet done.

Take health insurance for yourself and dependent.

Avoid ULIPs or investment insurance products.

Avoid index funds as they don’t beat market always.

Regular mutual funds via Certified Financial Planner give better support.

Avoid direct plans as they give no guidance or help.

When Should You Buy A House Then?

When you have minimum Rs. 35 to 40 lakhs corpus ready.

When EMI is less than 35% of your salary.

When you have 6 to 12 months emergency fund set aside.

When your SIP and PPF can continue without stopping.

When job and income feel stable for long term.

Till then, stay in rent and grow your investments.

You can invest even with property in mind.

Create a “home goal fund” in short to medium mutual funds.

Add lumpsum to this if salary rises or bonuses come.

Review property market every year with your Certified Financial Planner.

If property prices fall or income increases, reassess.

Extra Steps You Can Take

Avoid lifestyle inflation. Keep expenses simple.

Don’t buy car or other EMI-based assets now.

Keep salary hike savings 100% for investments.

Increase SIP every year as income grows.

Protect your dependent with medical cover and estate plan.

Consider creating a Will for your assets.

Keep updating your plan every year or with life changes.

Finally

You are doing very well at this stage of life.

Your savings rate is excellent.

Your investment approach is balanced and smart.

Buying a home now is not right timing.

It may reduce your long-term growth and flexibility.

Delay home purchase for 2 to 3 years minimum.

Use this time to strengthen your investment base.

Let your SIPs and PPF grow your net worth.

Use Certified Financial Planner for regular reviews and guidance.

Stay focused on what matters – stability, growth, peace.

House can wait. Financial freedom cannot.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Nayagam P

Nayagam P P  |8623 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Career
Any idea about Newton school of technology for CS, is it a good option My son got 95 percentile in JEE mains and 96.4 percentile in MHCET, can you suggest good option for CSE
Ans: With a 96.4 percentile in MHT-CET (General-All India), your son is assured admission to numerous reputable Mumbai and Pune institutes whose CSE closing percentiles fall below his score. These colleges combine NBA/NAAC accreditation, modern AI/ML and networking labs, active placement cells achieving 75–90% branch-wise placements over three years, strong industry tie-ups, and supportive campus environments. Fifteen institutions in Maharashtra where admission in CSE is guaranteed for a 96.4 percentile include College of Engineering Pune (Shivajinagar, Pune); Veermata Jijabai Technological Institute (Matunga, Mumbai); Sardar Patel College of Engineering (Andheri West, Mumbai); Pioneer Institute of Technology (Bhosari, Pune); Maharashtra Institute of Technology (WPU campus, Pune); Pimpri Chinchwad College of Engineering (Nigdi, Pune); Sinhgad Institute of Technology & Science (Lonavala, Pune); DY Patil College of Engineering (Akurdi, Pune); Pune Institute of Computer Technology (Tathawade, Pune); Army Institute of Technology (Dighi, Pune); Bharati Vidyapeeth College of Engineering (Katraj, Pune); Reva University (off-campus CSE & Business Systems, Jayanagar, Bangalore); Acharya Institute of Technology (Soladevarabetta, Bangalore); RNS Institute of Technology (Channasandra, Bangalore); and BMS Institute of Technology & Management (Yelahanka, Bangalore).

Through CSAB counselling based on a 95 percentile JEE-Main score, strong CSE admission prospects exist at NIT Goa; NIT Durgapur; NIT Puducherry; IIIT Dharwad; IIIT Bhagalpur; IIIT Kottayam; IIIT Naya Raipur; IIIT Manipur; BIT Deoghar (off-campus CSE); and PEC Chandigarh.

Recommendation For MHT-CET choices, prioritize COEP Pune and VJTI Mumbai for top-tier CSE programmes, then PICT Pune, SPCE Mumbai, and MIT WPU Pune to balance cutoffs with infrastructure. For CSAB, lock IIIT Dharwad CSE first, followed by IIIT Bhagalpur, PEC Chandigarh, IIIT Kottayam, and NIT Goa to maximize CSE admission certainty. (About Newton School of Technology in Brief: Newton School of Technology’s four-year B.Tech in Computer Science & AI is UGC-approved via Rishihood University, delivered on a 25-acre residential campus with AI/ML labs, six-month industry internships, and mentorship by tech-firm experts. Its curriculum emphasizes hands-on projects and global tech-hub exposure, but the programme’s steep total fees and relative newness may challenge budget and long-term alumni support. Placement assistance holds around 40–50% conversion in core CS roles, reflecting early-stage recruiting dynamics.) All the BEST for Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hi I am 45 years old, having 2 daughters. Need advice how can I invest money for my future. I earn 2 lakh per month
Ans: You are 45 years old with two daughters. You earn Rs 2 lakh per month. This gives you a good platform to plan your future. You are in a strong position to create wealth, protect your family, and plan for your daughters’ goals.

Let’s build a full strategy to help you grow, protect, and secure your money.

? Understand Your Financial Goals

– Begin with listing your life goals.
– Think about short-term, medium-term and long-term goals.
– Children's education and marriage will need focused planning.
– Retirement planning is also very important at this stage.
– Emergency fund, home upgrade, travel, and medical needs should also be covered.

? Assess Your Current Situation

– You earn Rs 2 lakh monthly. This gives financial comfort.
– You must know your current savings, investments, loans, and expenses.
– Keep track of your monthly surplus after regular expenses.
– This surplus is the base for your wealth building.

? Emergency Fund Must Be in Place

– Set aside 6 to 12 months’ expenses in liquid form.
– Keep it in a savings account, sweep-in F.D, or liquid mutual fund.
– Do not mix emergency funds with long-term investments.
– This gives peace of mind in job loss or health issues.

? Health Insurance and Term Insurance

– Take a family floater health insurance if not already done.
– Ensure it covers at least Rs 10 to 15 lakh.
– Even if employer gives group cover, buy your own.
– Also take a pure term insurance plan for yourself.
– It should cover at least 12–15 times your annual income.
– Avoid insurance-cum-investment plans. Returns are very poor in such policies.

? Review Existing LIC or ULIP Policies

– If you hold LIC endowment, money-back or ULIP policies, review them now.
– Most such policies give very low returns, often below 5% per year.
– Surrender such plans after checking surrender value and exit charges.
– Reinvest the money in mutual funds for better growth.
– Protecting family is best done through term insurance, not investment-linked policies.

? Asset Allocation: The Core of Investment Strategy

– Asset allocation gives stability and better returns over time.
– At 45 years of age, a balanced allocation is preferred.
– Around 60% can be in equity, 30% in debt, and 10% in gold.
– You can adjust based on your risk comfort.
– This mix balances growth and safety.

? Monthly SIPs for Long-Term Wealth Creation

– Start SIPs in mutual funds every month from your surplus.
– Equity mutual funds can help in long-term goals like retirement.
– SIPs create discipline and reduce risk through rupee cost averaging.
– Select actively managed funds. Avoid index funds and ETFs.
– Index funds just mirror markets. They don’t adjust in down cycles.
– Active funds have expert managers. They take better decisions in changing markets.
– Avoid direct plans if investing by yourself.
– Direct plans save on cost but lack guidance.
– Invest through regular plans via MFDs with CFP credentials.
– This gives you regular reviews and personal advice.

? Plan for Daughters’ Education

– You have two daughters. Their higher education needs careful planning.
– Estimate the cost based on current fees and inflation.
– Use mutual funds for this goal.
– Allocate to equity funds if time horizon is more than 5 years.
– Closer to goal, shift to safer debt funds.
– Start SIPs with goal-linked amounts.
– Track progress every 6 months. Adjust if needed.

? Plan for Daughters’ Marriage

– Marriage is another major goal.
– Keep a separate investment plan for this.
– You can use balanced mutual funds if the timeline is 7 to 10 years.
– Avoid gold jewellery purchases now.
– Invest in digital gold or gold mutual funds for liquidity and growth.

? Retirement Planning Starts Now

– You still have 15 years to retire.
– That is a good time frame to build your retirement corpus.
– Use equity mutual funds to build wealth.
– SIPs, lumpsum investments, and bonuses should be directed to retirement.
– Have a clear retirement goal in mind.
– Consider expected lifestyle cost post-retirement.
– Don’t depend only on PPF or F.Ds for this goal.

? Avoid Real Estate as Investment

– Real estate gives poor liquidity and high entry costs.
– It also needs high maintenance and may stay idle.
– Rental yield is low.
– You already have a steady income. You don’t need rental income dependency.
– So avoid new real estate purchases as an investment tool.

? Tax Efficiency in Investments

– Mutual funds offer better tax-adjusted returns than F.Ds.
– Equity mutual funds held for more than 1 year have LTCG tax of 12.5% over Rs 1.25 lakh.
– Short-term gains in equity funds are taxed at 20%.
– Debt mutual funds are taxed as per your income slab.
– So plan your holding period smartly.
– Avoid frequent selling of mutual funds.

? Avoid Annuities and Guaranteed Return Products

– Annuities give very low returns.
– They also lack flexibility and have long lock-ins.
– Many insurance-linked guarantees are mis-sold.
– Avoid such low-yield, high-lock products.

? Use Goal-Based Investment Buckets

– Split your investments based on goals, not random SIPs.
– One SIP bucket for retirement, one for education, one for marriage, etc.
– This helps in clarity and focused tracking.
– Each goal has different risk and time frame.

? Avoid Risky Investment Behaviour

– Don’t chase hot tips or latest trends.
– Avoid crypto, futures, options, or direct equity without expertise.
– Stay away from unknown apps or schemes promising fixed monthly returns.
– Stick to proven, regulated, and guided products.

? Gold Allocation for Stability

– Around 5–10% of your portfolio can be in gold.
– Use gold mutual funds or sovereign gold bonds.
– Avoid physical gold for investment.

? Review and Rebalance Every Year

– Portfolio review is a must once in 6 to 12 months.
– Rebalance asset allocation if it shifts from target.
– For example, equity may grow to 70% from 60%.
– Rebalance it back to 60%.
– Review performance of funds too. Replace if lagging continuously.

? Estate Planning and Nomination

– Create a Will.
– Ensure all your investments and accounts have nominations.
– Share investment details with spouse or trusted person.
– This keeps things smooth for the family later.

? Work with a Certified Financial Planner

– You have many responsibilities and goals.
– A Certified Financial Planner helps you with a 360-degree plan.
– They offer customised strategies, regular tracking, and course correction.
– Investing without guidance often leads to mistakes.
– A planner ensures you stay on track for every goal.

? Finally

– You are financially sound at age 45.
– With structured planning, you can build wealth for your future.
– Use equity mutual funds for long-term growth.
– Avoid index funds, direct plans, and real estate.
– Invest through regular funds with help from an MFD-CFP.
– Secure your family with term and health cover.
– Build goal-based SIPs and keep rebalancing.
– Stay disciplined and track regularly.
– This approach will bring financial peace for you and your family.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9708 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hello Sir, I retired recently as DGM AVIATION. I got p.f gratuity and lic on retirement . I purchased a plot from some amount and 60 lk remaining. Please advise how to invest this so that I get max return in 5 to 6 yrs. I have regular pension of 1.25 L pm . Also have f.d and ppf backup. Thanks and regards.
Ans: A regular pension of Rs 1.25 lakh, along with F.D and PPF backup, gives good financial security. The Rs 60 lakh amount now can be used for growth and support. A focused, balanced strategy will help you gain high returns over 5 to 6 years.

Let us create a detailed plan step-by-step.

? Understand Your Risk Profile

– You are a recent retiree. Capital safety must be your first goal.
– However, your regular pension and backups allow for some equity exposure.
– You can aim for moderate growth, not aggressive.
– Avoid high-risk choices like direct stocks or crypto.

? Clear Purpose for the Rs 60 Lakh

– Keep your investment goal clear: growth over 5–6 years.
– Do not use this amount for any emergency use.
– Your emergency fund should be in F.D or savings account.

? Asset Allocation Strategy

– Diversifying is the key. Avoid putting all Rs 60 lakh in one place.
– A balanced approach between equity and debt is more suitable.
– 60% equity and 40% debt may suit your risk profile.
– This gives return potential along with capital safety.

? Equity Portion: Use Actively Managed Mutual Funds

– Allocate Rs 36 lakh (60%) to equity mutual funds.
– Use diversified, actively managed funds. Avoid index and ETF funds.
– Index funds just copy the market. They cannot beat the market.
– Actively managed funds are handled by professionals.
– These fund managers aim to beat the market through research.
– Avoid direct plans. They may look cheaper, but lack proper guidance.
– Regular plans via MFDs with CFP credentials offer personalised help.
– They guide, review, and suggest changes at the right time.

? Debt Portion: Use Debt Mutual Funds and Short-Term Instruments

– Allocate Rs 24 lakh (40%) to debt funds and other fixed options.
– Avoid locking entire debt money in F.D for long periods.
– Use short-duration debt mutual funds for better tax efficiency.
– Debt funds may give slightly better post-tax returns than F.Ds.
– Use laddering – keep part of the money maturing every year.
– This gives liquidity and reduces reinvestment risk.

? Stay Away from Index Funds and Direct Plans

– Index funds follow a passive style.
– They cannot handle market risks actively.
– When markets fall, index funds fall blindly.
– Actively managed funds protect better during such times.
– Direct plans may save 1% in cost, but they miss expert help.
– Regular plans through a qualified MFD-CFP give long-term support.
– This support matters more than just lower cost.

? Tax Treatment for Mutual Funds (As per latest rules)

– If you sell equity mutual funds after 1 year, gains over Rs 1.25 lakh are taxed at 12.5%.
– Short-term gains (within 1 year) in equity are taxed at 20%.
– For debt mutual funds, both short-term and long-term gains are taxed as per your slab.
– So stagger your withdrawals after 1 year for tax savings.

? Do You Have Any ULIPs or Traditional LIC Policies?

– You have mentioned LIC policy on retirement.
– Please check if this is a maturity benefit from a traditional plan or ULIP.
– If you still hold any ULIP or traditional insurance policy, assess the returns.
– These products give low returns, often below 5-6% per year.
– If you still hold such low-return policies, consider surrendering.
– Reinvest that amount in mutual funds with better growth potential.

? Inflation Protection

– F.Ds and PPF offer fixed returns. But they may not beat inflation over long term.
– Equity exposure is important to protect against inflation.
– Keeping money only in safe but low-return options may reduce wealth over time.
– So some part of your money must grow faster than inflation.

? Keep a 6-Year Timeline in Mind

– Since your investment goal is 5 to 6 years, plan exit from equity slowly.
– Start reducing equity exposure by the end of 4th year.
– Move funds to safer options step-by-step.
– This avoids risk of sudden market fall near your target year.

? Rebalancing Strategy

– Once every year, review your portfolio allocation.
– If equity grows more than expected, rebalance back to 60:40.
– Rebalancing locks gains and maintains your risk level.
– This review should be done with the help of a certified MFD or CFP.

? Stay Away from High-Risk or Locked-In Products

– Do not invest in corporate bonds directly without expert guidance.
– Avoid any new-age fintech schemes that promise high return.
– Do not put money in PMS or private equity schemes.
– Avoid NPS for now, as your retirement is already active and NPS has lock-in.
– Do not consider real estate again. It has high cost and low liquidity.

? Do Not Over-Depend on PPF

– PPF is a good tax-free option. But its limit is only Rs 1.5 lakh per year.
– You already have backup in PPF. Don’t allocate more now.
– Use mutual funds for better flexibility and growth.

? Be Careful with F.D Renewals

– Renew your F.Ds only after checking the latest interest rates.
– Do not keep all F.Ds in one bank. Use 2–3 reputed banks.
– Keep maturity dates spread over different years.
– Consider shifting some F.Ds to debt funds if tax slab is high.

? Monitor Your Investments

– Don’t keep your investments idle.
– Review at least once in 6 months.
– Watch fund performance, market outlook and interest rates.
– Rebalance if asset allocation shifts too much.

? Estate Planning and Nomination

– You are now retired, so estate planning becomes very important.
– Ensure all your investments have correct nominations.
– Make a Will and keep your family informed.
– This avoids legal issues later.

? Discuss with Certified MFD-CFP

– Your investment journey now needs professional guidance.
– Discuss your total assets, tax needs and future support needs.
– A Certified Financial Planner will build a full retirement plan for you.
– They will ensure proper risk, return, tax and liquidity balance.
– This plan will keep your wealth safe and growing.

? Finally

– You already have regular pension and good financial base.
– The Rs 60 lakh can now work for your wealth growth.
– Use a smart mix of equity and debt mutual funds.
– Avoid index funds, direct funds, ULIPs and real estate.
– Keep monitoring and adjusting with expert guidance.
– This way you will enjoy your retired life peacefully and confidently.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |8623 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2025

Career
Is chemical engineering worthy branch from IITs and nits
Ans: Chemical Engineering at premier Institutes of National Importance marries rigorous fundamentals in thermodynamics, fluid mechanics, reaction engineering, process control, and mass transfer with cutting-edge interdisciplinary domains such as biochemical engineering, energy sustainability, and nanomaterials. Leading IITs—Bombay, Delhi, Madras, Kanpur, and Kharagpur—boast world-class research laboratories (e.g., IIT Bombay’s Polymer, Reaction Engineering, and SoFT labs; IIT Kanpur’s nano-technology and complex fluids facilities; IIT Madras’s pilot-plant and advanced materials centres), small cohort sizes, and faculty who publish extensively in high-impact journals. Placement consistency across IIT Chemical branches typically exceeds 80–90% over the past three years, with average packages ranging from ?15–19 LPA at IIT Madras and IIT Hyderabad, and 70–80% core-sector hiring complemented by roles in consulting and analytics. NITs such as Trichy and Warangal maintain comparable on-campus placement rates of 90–92% for Chemical Engineering, supported by robust industry linkages with Reliance, IOCL, and Larsen & Toubro. Academic rigour fosters strong analytical skills but entails heavy workloads and fewer core-chemical recruiters compared to mechanical or electrical disciplines, limiting options for some students. Emerging programmes emphasize machine learning-driven process optimization and green chemistry, yet departmental expansion can strain lab resources and mentorship availability. Infrastructure may vary across NITs, with newer campuses offering fewer pilot-scale units. Overall, Chemical Engineering from IITs and top NITs equips graduates for diverse roles—from petroleum refining, pharmaceuticals, and specialty chemicals to environmental engineering and data-driven process analytics—while demanding sustained commitment to complex mathematical modelling and experimental research.

Recommendation: Graduates seeking research-intensive or high-impact process design careers should prioritise IIT Bombay or IIT Kanpur for their advanced laboratories and mentorship, followed by NIT Trichy or NIT Warangal for balanced academia-industry exposure. Opt for IIT Madras if global placements and pilot-plant experience are decisive; choose IIT Delhi for strong consultancy and analytics pathways. Follow RediffGURUS to Know More on 'Careers | Money | Health | Relatinships'.

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Nayagam P

Nayagam P P  |8623 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Career
Hi sir I got 58.69 percentile in Mht cet what colleges can I get I'm from Nagpur and Caste OBC
Ans: With a 58.69 percentile under the OBC category, you can secure admission in Nagpur’s mid-tier engineering colleges whose closing percentiles for OBC typically fall below 60. Ten such institutions are:

Yeshwantrao Chavan College of Engineering, Hingna Road, Nagpur (OBC cutoff ~55–60 percentile)
Nagpur Institute of Technology, Hingna Road, Nagpur (Information Technology cutoff ~55.9 percentile)
KDK College of Engineering, Kalmeshwar Road, Nagpur (CSE cutoff ~40–46 percentile)
Priyadarshini College of Engineering, Hingna Road, Nagpur (OBC cutoff ~50–55 percentile)
G.H. Raisoni College of Engineering, Gittikhadan, Nagpur (OBC cutoff ~50–58 percentile)
Cummins College of Engineering for Women, Kondhawa Road, Nagpur (OBC cutoff ~45–55 percentile)
RCOEM (Ras Bihari Bose College), Hingna Road, Nagpur (OBC cutoff ~52–57 percentile)
Manoharbhai Patel Institute of Engineering & Technology, Bhandara Road, Nagpur (OBC cutoff ~48–56 percentile)
Dr. Ambedkar College of Engineering, Nagpur (OBC cutoff ~50–58 percentile)
Shri Ramdeobaba College of Engineering & Management, Gittikhadan, Nagpur (OBC cutoff ~50–60 percentile)

These colleges combine NAAC/NBA accreditation, modern labs, active placement cells (70–85% branch-wise consistency), industry tie-ups, and supportive campus facilities. All the BEST for Admission & a Prosperous Future!

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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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