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Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 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
Shivam Question by Shivam on May 12, 2024Hindi
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I am 26 year with monthly savings of about 50k . I want to start investment in different portfolio . I would also need saving for my marriage after 2 years . Can u suggest me my portfolio .

Ans: As a Certified Financial Planner, I understand the significance of tailoring an investment portfolio that aligns with your financial goals and aspirations. With your monthly savings of 50k and a forthcoming marriage in mind, let’s delve into creating a diversified investment strategy that suits your needs.

Understanding Your Goals
Firstly, congratulations on your commitment to financial planning at such a young age. Your dedication to saving and investing is commendable and sets a strong foundation for your future financial security.

Short-Term Needs: Saving for Marriage
With your marriage on the horizon in just two years, it's essential to prioritize your short-term savings. Opting for low-risk investment avenues is prudent to ensure the funds are readily available when needed. Consider avenues like liquid funds or short-term debt funds, which offer stability and liquidity.

Long-Term Growth: Building Your Portfolio
Diversification is key to mitigating risks and maximizing returns over the long term. While real estate is often considered, it comes with its own set of challenges, including illiquidity and high upfront costs. Hence, we'll explore other avenues for wealth accumulation.

Equity Investments: Embracing Growth Opportunities
Equities, despite their volatility, offer unparalleled growth potential over the long term. Actively managed equity mutual funds, overseen by skilled fund managers, can capitalize on market opportunities and navigate risks effectively. Unlike index funds, actively managed funds have the flexibility to adapt to changing market conditions and outperform benchmarks.

Debt Instruments: Balancing Risk and Stability
Incorporating debt instruments in your portfolio provides stability and regular income. Opt for a mix of medium to long-term debt funds, which offer higher returns compared to traditional savings instruments like fixed deposits. Regular funds managed by Mutual Fund Distributors (MFDs) with CFP credentials ensure personalized guidance and assistance, enhancing your investment experience.

Gold Investments: Hedging Against Uncertainty
Gold serves as a hedge against economic uncertainty and inflation. Allocating a small portion of your portfolio to gold, either through gold mutual funds or sovereign gold bonds, adds diversification and stability.

Emergency Fund: Safeguarding Your Financial Well-being
Maintaining an emergency fund equivalent to at least six months of expenses is crucial to handle unforeseen financial emergencies without disrupting your investment portfolio. Keep this fund in easily accessible avenues like savings accounts or liquid funds.

Regular Review and Rebalancing
Periodically reviewing your portfolio and rebalancing it ensures it remains aligned with your financial goals and risk tolerance. Life events, market conditions, and personal circumstances may warrant adjustments to your investment strategy.

Conclusion
In crafting your investment portfolio, it's vital to strike a balance between growth, stability, and liquidity while keeping your short-term and long-term goals in mind. By diversifying across various asset classes and seeking professional guidance, you can embark on a journey towards financial success and security.

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.
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Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

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Hello Sir, I am 33 years old male ready to invest 1.5 lakhs per month for the next 5 years. I also have a savings of rs 10 lakhs now.. How should i start building my investment portfolio?
Ans: Firstly, congratulations on your commitment to investing. Your financial future looks promising with a disciplined approach. Let’s build a solid investment strategy for you.

Your monthly investment capacity of Rs 1.5 lakhs and current savings of Rs 10 lakhs can be effectively utilized to achieve your financial goals. Here's a detailed guide on how to structure your portfolio.

Emergency Fund Allocation
An emergency fund is crucial. It ensures you are prepared for unforeseen expenses.

You already have Rs 10 lakhs in savings. I recommend setting aside a portion of this as your emergency fund. Typically, six months’ worth of expenses is a good benchmark. This fund should be easily accessible.

Consider placing this amount in a liquid fund or a short-term fixed deposit.

Asset Allocation Strategy
Asset allocation is the foundation of your investment strategy. It involves spreading your investments across various asset classes to balance risk and reward.

Equity Investments
Equity investments are essential for long-term growth. They provide higher returns compared to other asset classes.

However, equities also come with higher risk. A diversified approach can mitigate this risk.

Large Cap Funds: These funds invest in well-established companies with a strong market presence. They offer stable returns and lower risk compared to mid and small-cap funds.

Mid Cap Funds: These funds invest in medium-sized companies with potential for higher growth. They carry more risk but can yield substantial returns.

Small Cap Funds: These funds focus on smaller companies. They offer the highest growth potential but also come with higher volatility.

Flexi Cap Funds: These funds invest across market capitalizations, offering a balanced approach.

By diversifying across these categories, you can maximize your returns while managing risk.

Debt Investments
Debt investments provide stability and regular income. They are less volatile than equities.

Debt Mutual Funds: These funds invest in fixed-income securities like government bonds and corporate bonds. They offer regular returns with lower risk.

Corporate Bond Funds: These funds invest in high-rated corporate bonds. They provide better returns than government bonds but carry slightly higher risk.

Short-Term Debt Funds: These funds invest in short-term debt instruments. They are suitable for investors with a low-risk appetite.

Debt investments should form a significant part of your portfolio to balance the risks of equity investments.

Systematic Investment Plan (SIP)
A SIP is a disciplined way to invest in mutual funds. It spreads your investments over time, reducing market volatility.

Investing Rs 1.5 lakhs per month through SIPs can help you benefit from rupee cost averaging. This strategy ensures you buy more units when prices are low and fewer units when prices are high.

Regular vs Direct Mutual Funds
Investing through a Certified Financial Planner (CFP) can provide you with valuable insights and expert advice.

Disadvantages of Direct Funds
Direct funds require you to manage your investments yourself. This can be time-consuming and challenging.

You may lack the expertise to select the right funds and monitor your portfolio.

Benefits of Regular Funds
Regular funds, managed through a CFP, offer professional management and personalized advice.

A CFP can help you align your investments with your financial goals, monitor your portfolio, and make necessary adjustments.

Avoiding Index Funds
Index funds are passively managed. They aim to replicate the performance of a market index.

Disadvantages of Index Funds
They do not offer the potential for outperforming the market. They also do not adapt to market changes or take advantage of specific opportunities.

Benefits of Actively Managed Funds
Actively managed funds aim to outperform the market. Fund managers use their expertise to select the best stocks and adjust the portfolio based on market conditions.

This active management can lead to higher returns compared to index funds.

Diversification Across Sectors
Diversification is not just about asset classes. It’s also about spreading your investments across different sectors.

Invest in various sectors such as technology, healthcare, finance, and consumer goods. This reduces the impact of sector-specific downturns on your portfolio.

Rebalancing Your Portfolio
Regularly review and rebalance your portfolio. This ensures your asset allocation remains aligned with your financial goals.

Market movements can cause your portfolio to deviate from its original allocation. Rebalancing involves selling overperforming assets and buying underperforming ones.

This keeps your portfolio balanced and aligned with your risk tolerance.

Monitoring and Reviewing Investments
Regularly monitor your investments. Review your portfolio’s performance and make adjustments as needed.

A CFP can assist in this process. They provide ongoing advice and ensure your investments remain on track to meet your goals.

Tax Planning
Effective tax planning can enhance your returns. Utilize tax-saving instruments and strategies to minimize your tax liability.

Equity Linked Savings Schemes (ELSS)
ELSS funds offer tax benefits under Section 80C. They invest in equities and have a lock-in period of three years.

This provides tax savings and potential for higher returns.

Long-Term Capital Gains (LTCG)
Equity investments held for more than one year qualify for LTCG tax benefits. The gains are taxed at a lower rate compared to short-term gains.

Debt Fund Taxation
Debt funds held for more than three years qualify for LTCG tax benefits. The gains are taxed after considering indexation benefits, which adjust the purchase price for inflation.

Avoiding Investment in Real Estate
While real estate is a popular investment option, it comes with certain drawbacks.

Illiquidity
Real estate investments are not easily liquidated. Selling property can take time and may not yield immediate cash.

High Costs
Real estate investments involve high costs, including property taxes, maintenance, and transaction fees.

Market Risk
The real estate market can be volatile. Property values can fluctuate, affecting your returns.

Avoiding Annuities
Annuities may seem attractive for retirement income but come with limitations.

High Fees
Annuities often have high fees and charges, which can erode your returns.

Limited Flexibility
Annuities offer limited flexibility. Once you invest, accessing your funds can be difficult.

Importance of Insurance
Adequate insurance coverage is crucial to protect your financial plan.

Term Insurance
Term insurance provides financial security to your dependents in case of your untimely demise. It offers high coverage at a low cost.

Health Insurance
Health insurance protects you from medical expenses. Opt for a comprehensive plan that covers hospitalization, critical illness, and other medical costs.

Setting Financial Goals
Clearly define your financial goals. This will guide your investment strategy.

Short-Term Goals
Short-term goals could include building an emergency fund, planning a vacation, or purchasing a vehicle.

Medium-Term Goals
Medium-term goals might involve saving for a down payment on a house, funding education, or starting a business.

Long-Term Goals
Long-term goals often include retirement planning, children’s education, and wealth accumulation.

Regular Financial Planning
Engage in regular financial planning. This involves setting goals, creating a plan, and monitoring your progress.

A CFP can assist in this process. They provide expert advice and ensure your financial plan remains on track.

Final Insights
Building a robust investment portfolio requires careful planning and regular monitoring.

Your commitment to investing Rs 1.5 lakhs per month sets a strong foundation for your financial future.

By diversifying your investments, balancing risk, and seeking professional advice, you can achieve your financial goals.

Remember to regularly review and adjust your portfolio to stay aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 2024

Asked by Anonymous - Jul 13, 2024Hindi
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Hi Sir/Madam, I am 37 years old government employee. I have a wife, 4 years old son and 3 years old daughter. I don't have any investment. Please advise good portfolio for mutual fund considering 30K available at hand for investment till retirement @60years. Thanks
Ans: Let's understand your situation better. You are 37, a government employee, with a wife, a 4-year-old son, and a 3-year-old daughter. You have Rs 30,000 monthly to invest until retirement at 60. Your main goals are likely to secure your children's education, build a retirement corpus, and ensure financial stability.

Why Mutual Funds?
Mutual funds offer diversification, professional management, and potential for good returns. They're a solid choice for long-term goals like retirement and children's education.

Asset Allocation Strategy
Asset allocation is key. It balances risk and return. At 37, with a long-term horizon, you can afford a higher allocation in equities. Here's a suggested breakdown:

Equity Mutual Funds (70%): For growth.
Debt Mutual Funds (20%): For stability.
Hybrid Funds (10%): For balanced growth and stability.
Equity Mutual Funds
Equity funds invest in stocks. They offer high growth potential. Given your age and goals, focus on:

Large-Cap Funds: For stability and steady growth.
Mid-Cap Funds: For higher growth potential with moderate risk.
Small-Cap Funds: For aggressive growth but higher risk.
Diversifying across these categories reduces risk.

Debt Mutual Funds
Debt funds invest in fixed-income securities. They provide stability and lower risk. Consider:

Short-Term Debt Funds: Less sensitive to interest rate changes.
Corporate Bond Funds: Offer higher returns than government bonds.
Liquid Funds: For emergency funds, as they are highly liquid.
Hybrid Funds
Hybrid funds combine equity and debt. They offer balanced risk and return. Suitable types include:

Aggressive Hybrid Funds: Higher equity component.
Balanced Hybrid Funds: Equal mix of equity and debt.
Systematic Investment Plan (SIP)
Investing through SIPs is a disciplined approach. It averages out market volatility. With Rs 30,000, you can allocate SIPs across different funds:

Large-Cap Fund: Rs 10,000
Mid-Cap Fund: Rs 7,000
Small-Cap Fund: Rs 4,000
Debt Fund: Rs 5,000
Hybrid Fund: Rs 4,000
Rebalancing Your Portfolio
Regular rebalancing is crucial. It maintains your desired asset allocation. Review your portfolio annually. Shift profits from high-performing assets to underperforming ones.

Tax Efficiency
Mutual funds offer tax benefits. Equity funds held for over a year are subject to long-term capital gains tax (LTCG) at 10% for gains above Rs 1 lakh. Debt funds held for over three years benefit from indexation, reducing tax liability.

Emergency Fund
Maintain an emergency fund. It should cover 6-12 months of expenses. Use liquid funds for this. They're accessible and offer better returns than savings accounts.

Children's Education
Consider investing in dedicated children's funds. They provide for education expenses. Start SIPs in equity funds with a long-term horizon. Use debt funds for short-term needs.

Retirement Planning
Focus on building a substantial retirement corpus. Your monthly SIPs in equity and hybrid funds will grow over time. As you near retirement, gradually shift to more debt funds to preserve capital.

Risk Management
Diversify to manage risk. Avoid putting all your money in one type of fund. Regularly review and adjust your portfolio based on performance and changing goals.

Avoid Common Pitfalls
Avoid Timing the Market: It's risky and often unprofitable. Stick to your SIPs.
Don't Panic During Market Volatility: Stay invested for the long term.
Avoid Over-diversification: Too many funds can dilute returns and complicate management.
Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They provide personalized advice, aligning with your goals and risk tolerance.


You're making a wise decision by planning your investments. It's commendable to think about your family's future and your retirement. This proactive approach will pay off in the long run.


We understand that starting investments can be daunting. It's natural to feel uncertain. With a clear plan and consistent approach, you'll build a secure financial future for your family.

Final Insights
Investing Rs 30,000 monthly in mutual funds is a solid strategy. Diversify across equity, debt, and hybrid funds. Use SIPs for disciplined investing. Regularly review and rebalance your portfolio. Maintain an emergency fund and plan for children's education and retirement. Avoid common pitfalls and seek professional guidance when needed. You're on the right path to a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 20, 2024

Asked by Anonymous - Jul 29, 2024Hindi
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I am 33 years old with a monthly salary of 2 lakhs. I have a 6 year old son. I have a home loan of 37 lakhs. Monthly expenses 31500 of home loan emi , house expenses 60000 . I have no emergency fund. I have to start investing in mutual fund and stocks . Please help in guiding me for the same to build the portfolio within next 15 to 20 years
Ans: You are 33 years old, earning Rs. 2 lakhs per month. You have a 6-year-old son. You have a home loan of Rs. 37 lakhs, with an EMI of Rs. 31,500. Your house expenses total Rs. 60,000 per month. You do not have an emergency fund and are looking to start investing in mutual funds. Given your situation, it’s best to focus on mutual funds rather than direct stocks.

Setting Up an Emergency Fund
Before starting your investments, the first priority is to establish an emergency fund. This fund should cover at least six months of your essential expenses. Based on your current expenses, aim to build an emergency fund of Rs. 6-8 lakhs.

Begin by setting aside a portion of your monthly income.

Keep this fund in a liquid instrument like a savings account or a liquid mutual fund.

This will provide a financial cushion in case of unforeseen events.

Balancing Your Debt
Your home loan is a significant commitment. But considering the benefits of owning property and the tax deductions on interest payments, continue with the EMI payments.

Ensure that you are not over-leveraged.

Prioritize paying off the loan as per your comfort, but do not rush into prepayments if it compromises your investment potential.

Investing in Mutual Funds
Given your long-term goal of building a portfolio over the next 15 to 20 years, mutual funds are an excellent option. They offer diversification, professional management, and the potential for higher returns compared to traditional savings instruments.

Systematic Investment Plan (SIP)
A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. It allows you to invest a fixed amount every month, which can align with your cash flow and risk tolerance.

Start with a SIP amount that you are comfortable with.

Over time, as your income increases, you can increase your SIP contributions.

Types of Mutual Funds
To build a robust portfolio, consider a mix of different types of mutual funds:

Equity Mutual Funds: These funds invest primarily in stocks and are suitable for long-term growth. They come with higher risk but also have the potential for higher returns. Since you are young and have a long investment horizon, allocate a significant portion of your investment here.

Debt Mutual Funds: These funds invest in fixed-income securities and are less risky compared to equity funds. They offer stability to your portfolio.

Hybrid Funds: These funds invest in a mix of equity and debt. They balance growth with stability, making them suitable if you want to reduce risk without compromising on potential returns.

Importance of Professional Guidance
Investing in direct stocks can be tempting, but it requires time, knowledge, and constant monitoring. As a 33-year-old with other responsibilities, it is wise to stick to mutual funds managed by professionals. These funds are overseen by fund managers who have the expertise to navigate market volatility and identify investment opportunities.

Regular Monitoring and Review
Your financial goals and situation may change over time. Regularly review your investments to ensure they align with your goals. Rebalance your portfolio if necessary, but avoid making frequent changes based on short-term market movements.

Tax Planning
Mutual funds also offer tax-efficient options. Equity-linked saving schemes (ELSS) can provide tax benefits under Section 80C. Consider investing in ELSS as part of your overall tax planning strategy.

Building Wealth Over Time
With a systematic approach to investing in mutual funds, you can build a substantial corpus over the next 15 to 20 years. The key is consistency, patience, and sticking to your plan without getting swayed by market noise.

Final Insights
Focus on building a strong financial foundation with an emergency fund and a balanced mutual fund portfolio. Avoid the complexities of direct stock investing, and let your investments grow over time through the power of compounding.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6861 Answers  |Ask -

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

Asked by Anonymous - Jul 29, 2024Hindi
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I am 33 years old female with a monthly salary of 2 lakhs. I have a 6 year old son. I have a home loan of 37 lakhs. Monthly expenses 31500 of home loan emi , house expenses 60000 . I have no emergency fund. I have to start investing in mutual fund and stocks . Please help in guiding me for the same to build the portfolio within next 15 to 20 years. I have to retire at 50
Ans: I appreciate your proactive approach to planning your financial future. You have a clear goal to retire by 50, and I can guide you on how to achieve this.

Current Financial Situation
Age: 33 years

Monthly Salary: Rs 2 lakhs

Home Loan: Rs 37 lakhs with a monthly EMI of Rs 31,500

Monthly Household Expenses: Rs 60,000

No Emergency Fund: This is a critical aspect to address

Investment Goals: Building a portfolio for retirement and starting investments in mutual funds and stocks

Building an Emergency Fund
Before you start investing, it's crucial to build an emergency fund.

Fund Size: Aim for 6-12 months of expenses

Monthly Savings: Set aside Rs 30,000-40,000 monthly until you reach this goal

Savings Account: Use a high-interest savings account or a liquid mutual fund

Home Loan Management
Your home loan EMI is Rs 31,500, a significant portion of your monthly expenses.

Prepayment: Consider making lump sum prepayments when possible to reduce the loan tenure and interest

Interest Rates: Regularly review and switch to lower interest rates if available

Investment Strategy for Mutual Funds
Diversified Portfolio
Creating a diversified portfolio will help balance risk and returns.

Large-Cap Funds: These funds invest in large, established companies. They offer stability and steady growth.

Mid-Cap Funds: These funds invest in medium-sized companies with high growth potential. They are moderately risky.

Multi-Cap Funds: These funds invest across large, mid, and small-cap stocks, providing diversified growth.

Equity-Linked Savings Scheme (ELSS): These funds offer tax benefits under Section 80C and are good for long-term growth.

SIPs for Consistent Investing
Start a Systematic Investment Plan (SIP) to invest regularly.

Monthly SIP Amount: Aim to invest Rs 50,000-60,000 monthly across different funds

Automate Investments: Set up automatic transfers to ensure consistent investing

Active Fund Management
Actively managed funds often outperform index funds.

Fund Manager’s Track Record: Choose funds with experienced managers who have a good performance history

Risk-Adjusted Returns: Evaluate funds based on risk-adjusted returns

Stock Investments
Investing in stocks can provide higher returns but comes with higher risk.

Building a Stock Portfolio
Blue-Chip Stocks: Invest in well-established companies with a strong track record

Growth Stocks: Invest in companies with high growth potential

Diversification: Spread investments across various sectors to reduce risk

Regular Monitoring
Review Performance: Regularly monitor your stock portfolio

Adjust Holdings: Make adjustments based on market conditions and company performance

Insurance Coverage
Ensuring adequate insurance coverage is crucial for financial security.

Health Insurance
Coverage Amount: Ensure you have a health insurance policy with adequate coverage

Family Floater: Consider a family floater plan for comprehensive coverage

Life Insurance
Term Plan: Opt for a term plan to provide financial security for your family

Coverage Amount: The sum assured should be at least 10-15 times your annual income

Retirement Planning
Setting Retirement Goals
Monthly Income Requirement: Estimate the monthly income you will need post-retirement

Inflation Adjustment: Factor in inflation to ensure your savings last throughout retirement

Investment for Retirement
Long-Term Equity Investments: Continue investing in equity mutual funds for long-term growth

Debt Funds: Gradually shift to debt funds as you approach retirement for stability

Regular Review and Adjustment
Annual Review: Review your financial plan annually

Adjust Investments: Make necessary adjustments based on changes in income, expenses, and financial goals

Final Insights
By building an emergency fund, managing your home loan, and strategically investing in mutual funds and stocks, you can achieve your retirement goal. Diversify your investments, ensure adequate insurance coverage, and regularly review your financial plan. This comprehensive approach will help you build a robust portfolio over the next 15-20 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Milind

Milind Vadjikar  |542 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 31, 2024

Milind

Milind Vadjikar  |542 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 31, 2024

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Sir My Age is 38 Now. Running Business In Pune city. Below are the My Assets & Liabilities. Current Values - Assets. Own Industrial Plot - Rs. 2.0 Cr Business Income Yearly Rs. 24.00 Lack Own Company Investment ( Machinery, Debtors Etc ) - Rs 2.40 Cr Mutual Fund & Share Market Investment Rs. 2.10 Cr Bank FD - Rs. 50.00 Lack Own 3 Flats in Pune - Rs. 75 lack, 50 Lack & 35 Lack ( Current Values ) Golds - Rs. 25.00 Lack Land - Agriculture - Rs. 50.00 Lack Term Insurances - Rs. 20.00 Lack ( Till Date Premium Paid ) Labilities. House Loan - Rs. 30.00 Lack ( EMI 26500.00 PM ) Loan will close after 17 years. Car Loan - Rs. 6.35 lack ( EMI 12500.00 PM ) Loan will close after 5 years. This Assets & investment sufficient for maintain 7 family members Expenses after retirement ? ( 4 Adult + 3 Children (Below 5 Years) ). I will retire at the age of 45.
Ans: Hello;

What is the expected monthly rental from industrial plot and machinery?

Are you currently occupying one of the flats mentioned here or are all of them given on rent?

Also your term life insurance is very low. You should have minimum term insurance cover of 2.4 Cr.

You have good assets in agri land, industrial land, gold, real estate but they are relatively illiquid when need arises hence term insurance cover with riders for critical care and accident benefit are an absolute must!

Considering the home loan tenure of 17 years and 3 small kids in the family to be supported for education and decent lifestyle, I am not sure if you can retire in 7 years timeframe from now.

However I would appreciate your reply to my queries above, before I give my firm view about your retirement in 7 years timeframe.

Best wishes;

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Asked by Anonymous - Oct 30, 2024Hindi
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I have around 1 crore to invest. I am 61 years old retired defence officer and pension amounting to around ?1,50,000/- per month and medically covered. Need some sound investment plan for 1 crore. Don't have any liabilities?
Ans: Hello;

You may invest your corpus into following two funds in proportion of 50:50,

1. Kotak Arbitrage fund (low risk)
You may consider modest return of 6% from this scheme.

2. ICICI Pru equity savings fund (low to moderate risk). You may consider modest return of 8% from this scheme.

Theses investments will retain purchasing power of your corpus aginst inflation and deliver some real returns too with low to moderate risk.

This is in accordance with your age and commensurate risk appetite.

Happy Investing;

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

...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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