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Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 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
Apoorva Question by Apoorva on May 06, 2024Hindi
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Sir/Madam, I am 27 years, 6 months ago I started doing sip of 10k total, five mutual funds 2k each, 1. Quant small cap 2. Parag parikh flexi cap 3. Kotak equity opportunities 4. Parag parikh elss tax saver 5. HDFC dividend yield I know I started a bit late, but now I am full stable and disciplined to be consistent and increase the sip amount by time to time. Am I going right, are my chosen funds are good, or I should change, please help and guide, give corrective suggestions

Ans: It's fantastic to see your proactive approach to investing at such a young age. Let's delve into your portfolio and see how you're doing:

• Starting a SIP at 27 is a commendable step towards building wealth for your future. Remember, it's never too late to begin investing, and your consistency will be key to your success.

• Your choice of mutual funds reflects a diversified approach, covering different sectors and market capitalizations. This is a smart strategy as it spreads your risk across various segments of the market.

• Investing in small-cap, flexi-cap, equity opportunities, ELSS tax saver, and dividend yield funds provides you with exposure to different investment styles and strategies. However, it's essential to review these funds periodically to ensure they continue to align with your financial goals.

• Consider assessing the performance of each fund against its benchmark and peers to gauge whether they are meeting your expectations. Look for consistency in returns and fund management expertise.

• As you progress in your investment journey and your financial situation evolves, you may consider increasing your SIP amount gradually. This will accelerate the growth of your portfolio over time.

• Additionally, stay updated with market trends and changes in economic conditions to make informed decisions about your investments. Keeping yourself informed will help you navigate any market volatility effectively.

• If you're unsure about whether your chosen funds are the right fit for you, don't hesitate to seek advice from a Certified Financial Planner. They can provide personalized recommendations based on your financial goals, risk tolerance, and investment horizon.

In conclusion, you're off to a great start with your SIP investments. Stay disciplined, continue to educate yourself about investing, and periodically review your portfolio to ensure it remains aligned with your objectives. With patience and perseverance, you're on track to build a strong financial foundation for the future. Keep up the excellent work!
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  |8329 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2024

Asked by Anonymous - May 08, 2024Hindi
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Hi Team, I am 35 and have below SIPs. Please review them and let me know if i have to make any changes. Parag Pareikg flexi cap fund - 10000 Motilal Oswal S&P 500 index fund - 2500 Quant Small Cap Fund- 5000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Banking & Financial Services Fund- 2500. Focus is to continue SIP for longterm
Ans: It's great to see your commitment to investing for the long term. Let's review your current SIP portfolio and discuss if any adjustments are needed to align with your goals.

Evaluating Your SIPs
Your portfolio consists of a mix of equity funds focusing on different market segments. Here's a brief overview of each fund:

Parag Parikh Flexi Cap Fund (Rs. 10,000): Known for its flexible investment approach across market caps and sectors, providing diversification and potential for long-term growth.

Motilal Oswal S&P 500 Index Fund (Rs. 2,500): Provides exposure to the top 500 companies in the US stock market, offering diversification and growth potential in the world's largest economy.

Quant Small Cap Fund (Rs. 5,000): Invests in small-cap companies with high growth potential, suitable for investors with a higher risk tolerance and longer investment horizon.

PGIM India Mid Cap Opportunities Fund (Rs. 5,000): Focuses on mid-cap companies with strong growth prospects, offering potential for capital appreciation over the long term.

SBI Banking & Financial Services Fund (Rs. 2,500): Invests in companies operating in the banking and financial services sector, benefiting from the growth potential of the Indian financial industry.

Recommendations for Optimization
Your portfolio is well-diversified across different market segments, which is essential for long-term growth. However, here are a few suggestions to consider for further optimization:

Monitor Performance: Regularly review the performance of each fund and assess whether they continue to meet your investment objectives. Consider replacing underperforming funds or reallocating assets based on changing market conditions and your financial goals.

Assess Risk Tolerance: Ensure that your portfolio's risk level aligns with your risk tolerance and investment horizon. While small-cap and mid-cap funds offer higher growth potential, they also come with increased volatility. Make sure you're comfortable with the level of risk in your portfolio.

Consider International Diversification: While the Motilal Oswal S&P 500 Index Fund provides exposure to the US stock market, you may consider adding more international diversification to your portfolio. Explore options such as global equity funds or international index funds to broaden your investment horizon.

Review Sectoral Exposure: Given your investment in the SBI Banking & Financial Services Fund, be mindful of overexposure to a single sector. Monitor the fund's performance and consider diversifying across sectors to reduce concentration risk.

Conclusion
Overall, your SIP portfolio is well-structured and positioned for long-term growth. By regularly reviewing and optimizing your investments, you can maximize returns and achieve your financial goals with confidence.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 16, 2024

Asked by Anonymous - Jun 16, 2024Hindi
Money
Hi sir. I am 38 years old have started SIP from 2024 jan. Following are the fund i am doing SIP. 1. Kotak ELSS 2. Quant ELSS 3.parag parikh flexi cap- regular 4.Nippon infrastructure growth-regular 5. SBI contra- regular 6.franklin india focussed equity fund-regular 7.Bajaj finserv multiasset alocation-regular 8.ICICI prudential silver ETF fund 9.ICICI prudential bharat 22 fof 10. HDFC small cap fund- regular My total monthly SIP amount 23000 INR. Kindy let me know if i have good portfolio diversification. Do i need to stop SIP in any kf above fund and start some other good fund. My motto is to get maximum return for next 10-15 years.
Ans: Assessing Your Investment Portfolio
Your investment portfolio is diversified, and that is commendable. However, let’s delve into the specifics of your funds to see if there’s room for optimization. Portfolio diversification is essential, but too many funds can lead to over-diversification, which might dilute returns.

Equity Linked Savings Schemes (ELSS)
You have two ELSS funds. ELSS is excellent for tax-saving under Section 80C. They also offer the potential for high returns due to their equity exposure. However, investing in multiple ELSS funds can be redundant. Consider consolidating your ELSS investments into one well-performing fund to streamline your portfolio.

Flexi Cap Funds
Flexi cap funds are versatile as they invest across market capitalizations based on the fund manager's outlook. Your flexi cap fund choice is prudent as it offers flexibility and diversification within itself. This type of fund can balance risk and reward effectively, adapting to market conditions.

Sectoral and Thematic Funds
You are investing in an infrastructure growth fund. Sectoral funds can provide high returns but come with higher risk due to their concentrated exposure. Infrastructure is a promising sector but is also susceptible to economic cycles and regulatory changes. It’s wise to limit exposure to such sector-specific funds to avoid significant volatility in your portfolio.

Contra Funds
Contra funds invest in undervalued stocks and follow a contrarian approach. These funds can provide significant returns during market corrections when undervalued stocks rebound. However, they require patience and a long-term horizon, which aligns well with your 10-15 year investment goal.

Focused Equity Funds
Focused equity funds concentrate on a limited number of stocks. This strategy can yield higher returns if the selected stocks perform well but also increases risk due to lower diversification. Ensure that the focused equity fund aligns with your risk tolerance and long-term goals.

Multi-Asset Allocation Funds
Multi-asset allocation funds invest across asset classes like equity, debt, and gold, providing diversification and risk management. This fund type is suitable for balanced growth and risk mitigation. Including such a fund in your portfolio adds stability and reduces dependency on market performance.

Precious Metals Fund
Your investment in a silver ETF fund adds an element of commodity diversification. Precious metals like silver can hedge against inflation and currency fluctuations. However, precious metal funds can be volatile and might not perform consistently over time. Limit exposure to such funds to avoid excessive risk.

Fund of Funds (FoF)
The Bharat 22 FoF invests in a basket of stocks from the Bharat 22 index, providing diversification within a single fund. FoFs can offer easy access to diversified portfolios but come with higher expense ratios due to the layered fee structure. Ensure the FoF aligns with your overall investment strategy and cost considerations.

Small Cap Funds
Small cap funds invest in smaller companies with high growth potential. These funds can offer substantial returns but also come with higher risk due to market volatility. Given your long-term horizon, small cap funds can be a valuable addition for capital growth, but monitor their performance and risk exposure closely.

Regular vs. Direct Funds
You have chosen regular plans through a mutual fund distributor (MFD) with a Certified Financial Planner (CFP) credential. Regular funds have slightly higher expense ratios due to distributor commissions. However, the guidance and advice from a certified professional can be invaluable in navigating market complexities and making informed decisions. Direct funds, while cheaper, require a deep understanding of market dynamics and continuous monitoring, which might not be feasible for all investors.

Disadvantages of Index Funds
Index funds, which you haven't opted for, have the disadvantage of passively following a market index. They cannot outperform the market as they merely replicate index performance. In contrast, actively managed funds, like the ones in your portfolio, have the potential to outperform through strategic stock selection and market timing by experienced fund managers. Active management can add significant value, especially in volatile or bearish markets.

Portfolio Optimization Suggestions
Consolidate ELSS Investments: Streamline your ELSS investments into one well-performing fund to avoid redundancy and simplify tracking.

Review Sectoral Fund Exposure: Limit exposure to sectoral funds like the infrastructure growth fund to manage risk better. Sectoral funds should not form a large portion of your portfolio.

Focus on Core Holdings: Maintain a balanced mix of flexi cap, contra, and focused equity funds as core holdings for stable and diversified growth.

Limit Precious Metals and Sectoral Exposure: Keep your investments in precious metals and sectoral funds minimal to avoid excessive risk from market volatility.

Evaluate Expense Ratios: Regularly review the expense ratios of your funds, especially the FoFs, to ensure they are cost-effective relative to their performance.

Understanding Market Cycles and Patience
Investing for 10-15 years requires understanding market cycles and having patience. Markets will have ups and downs, and staying invested during downturns is crucial for long-term growth. Avoid the temptation to make frequent changes based on short-term market movements. Instead, focus on your long-term goals and stay committed to your investment strategy.

Regular Review and Rebalancing
Regularly reviewing your portfolio and rebalancing it as needed is vital. As market conditions change, the allocation of your investments may drift from your original plan. Rebalancing ensures that your portfolio remains aligned with your risk tolerance and investment objectives. It also helps lock in gains and manage risks effectively.

Importance of Diversification
Diversification reduces risk by spreading investments across various asset classes and sectors. While you have diversified your investments, ensure that no single fund or sector dominates your portfolio. Proper diversification can enhance returns while mitigating risks, helping you achieve a balanced and resilient portfolio.

Role of a Certified Financial Planner
Working with a Certified Financial Planner (CFP) provides access to professional advice tailored to your financial goals. A CFP can help you make informed decisions, optimize your portfolio, and navigate complex market conditions. Their expertise ensures that your investments are aligned with your risk tolerance and long-term objectives.

Final Insights
Your current portfolio demonstrates a commendable approach towards diversification and long-term growth. However, streamlining your investments and focusing on core holdings can enhance returns and manage risks more effectively. Regular reviews and rebalancing, along with professional guidance from a Certified Financial Planner, will ensure that your investment journey remains on track towards achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 19, 2024

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Dear Rama Sir, I am 42 years and have been doing SIP since last 3 years. My monthly SIPs are as : ICICI Prudential Bluechip Fund : 20 K, DSP Mid CAP: 5K, SBI Small CAP: 12 K, Parag Parikh Flexi: 10 K and HDFC Balanced Advantage: 10 K. Also, I have invested Lumpsum amount of Rs. 50 K in DSP mid CAP, Rs. 15 K in ICICI Ultra Short and Rs. 4 Lacs in SBI Contra. Pl review and suggest improvements if required. I recently got bonus and can invest more in Lumpsum in your suggested funds. Request your guidance Sir.
Ans: Your systematic investment plan (SIP) portfolio shows a structured approach. It reflects a mix of large-cap, mid-cap, small-cap, flexi-cap, and balanced funds. The lump sum investments add diversification. This balanced allocation demonstrates prudence and clarity.

Let us review each aspect of your portfolio and provide tailored suggestions.

Strengths in Your Current Portfolio
Diversified Allocation: Your investments span large, mid, small caps, and flexi-cap categories. This reduces risk.

Consistent SIPs: Monthly SIPs total Rs. 57,000, reflecting commitment. SIPs instill discipline and capture market volatility over time.

Growth Potential: Mid-cap and small-cap funds provide good growth opportunities over the long term.

Lump Sum in Contra Fund: Rs. 4 lakh in a contra strategy adds a contrarian element. This could yield good returns in specific market conditions.

Areas for Improvement
Overlapping Funds: Multiple funds may invest in similar sectors or stocks. This could lead to duplication.

Balanced Allocation Concerns: High allocation to equity-oriented funds increases risk. A more balanced approach can help achieve stability.

Debt Investment Allocation: ICICI Ultra Short-Term Fund at Rs. 15,000 seems under-allocated. Adding more to debt can stabilize your portfolio.

Limited Sectoral Diversification: Current funds focus mainly on broader indices. Exposure to sectoral or thematic funds could enhance growth.

Suggestions for Portfolio Improvement
1. Optimise Equity Allocation
Retain a mix of large, mid, and small-cap funds, but assess overlap.
Avoid holding too many funds with a similar investment strategy. This leads to diluted returns.
Focus on funds with consistent performance and proven track records.
2. Strengthen Debt Investment
Increase allocation to debt funds for stability. Balanced funds are helpful, but dedicated debt funds are crucial for portfolio cushioning.
Consider short-term and corporate bond funds for steady returns.
3. Increase Lump Sum Allocation Wisely
Allocate the bonus amount across diversified funds to align with your goals.
Divide lump sum investments into tranches to leverage market corrections.
4. Assess Contra Fund Exposure
While contra funds offer unique opportunities, Rs. 4 lakh is a significant portion.
Limit exposure to avoid overdependence on contrarian strategies, which work best in certain cycles.
5. Tax Efficiency
Equity fund gains over Rs. 1.25 lakh annually are taxed at 12.5%.
Debt fund gains are taxed per your slab. Factor this into future investments.
Plan withdrawals smartly to reduce tax liabilities.
6. Emergency Fund
Ensure sufficient liquidity for emergencies. Allocate 6-12 months of expenses to liquid or ultra-short-term funds.
7. Avoid Overinvesting in a Single Strategy
Balanced advantage funds are versatile, but reliance on one strategy may restrict returns.
Maintain exposure while investing in other complementary funds.
Suggested Allocation for Your Bonus
Equity Investments

Direct part of your bonus to funds with high potential but less overlap.
Diversify by including funds with sectoral or thematic exposure.
Debt Investments

Allocate a portion to debt funds for stability.
Ultra-short-term funds can help with short-term goals.
Hybrid Funds

Use hybrid funds for a mix of equity and debt without aggressive risk.
Gold Investments

If not already, consider Sovereign Gold Bonds (SGB) for diversification.
Broader Financial Planning Recommendations
Goal-Oriented Investments
Map each investment to a specific goal like retirement, children’s education, or home purchase.
This ensures focus and clarity.
Insurance Coverage Check
Evaluate existing life and health insurance policies. Ensure they are sufficient to cover your family’s needs.
If you hold ULIPs, evaluate their returns. Surrendering may allow reinvestment into mutual funds.
Estate Planning
Ensure your investments are nominated and estate documents updated.
A will can simplify asset distribution and avoid future disputes.
Monitor Regularly
Review your portfolio semi-annually to track performance and make adjustments.
This keeps your investments aligned with changing goals and market conditions.
Benefits of Regular Funds Over Direct Funds
Expert Guidance: Investing through a Certified Financial Planner offers advice on fund selection.
Streamlined Process: Regular funds ensure consistent monitoring and better decision-making.
Human Oversight: Direct funds demand deeper financial knowledge. Advisors simplify choices.
Final Insights
Your portfolio reflects strong discipline and a solid foundation. Optimizing fund selection, balancing equity-debt, and aligning investments with goals can enhance returns.

Allocate your bonus systematically for maximum benefit. Avoid impulsive investments and maintain long-term discipline. This approach will keep you on track for financial independence.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

..Read more

Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 28, 2024

Asked by Anonymous - Dec 27, 2024Hindi
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Hi Team, I am 30 and have below SIPs. Please review them and let me know if i have to make any changes. Hdfc large & Mid cap fund - 5000 Motilal Oswal Mid cap fund - 5000 Kotak infrastructure and eco fund - 2000 PGIM India Mid Cap Opportunities Fund- 5000 SBI Contra -1500 Motila Oswal business cycle fund-3000 Focus is to continue SIP for longterm
Ans: Your portfolio reflects a proactive approach to wealth creation. Each fund serves a distinct purpose. Let's assess and optimise your investments for long-term growth.

Strengths of Your Current Portfolio
Diverse Investment Strategy: Your funds cover multiple segments like large-cap, mid-cap, and thematic investments.

Long-Term Focus: A consistent SIP approach aligns with compounding benefits and market cycles.

Mid-Cap Exposure: Allocating significant SIPs to mid-cap funds positions your portfolio for growth.

Inclusion of Thematic Funds: Thematic funds add sectoral focus, offering opportunities in specific growth areas.

Areas for Improvement
Concentration in Mid-Cap Funds: A high allocation to mid-cap funds can increase volatility. Diversification is key.

Overlapping Thematic Focus: Funds with sectoral or cyclical focus may overlap in strategy.

Balance Between Growth and Stability: Adding more stability-focused funds can protect the portfolio in downturns.

Fund-Specific Observations
Large and Mid-Cap Fund
This fund balances growth and stability.

Retain this allocation for consistent returns and risk management.

Mid-Cap Funds
Significant allocation to mid-cap funds is growth-oriented.

Review performance and overlap to avoid redundancy.

Consider reallocating some amount to flexi-cap funds for diversification.

Thematic Infrastructure Fund
Sector-focused funds can be volatile and dependent on market cycles.

Limit thematic exposure to 10% of your overall portfolio.

Monitor this fund closely to ensure it aligns with your goals.

Contra and Business Cycle Funds
Both funds are contrarian and cyclical in nature.

Overlapping strategies may lead to concentration risk.

Retain one fund and reallocate the other to a balanced or flexi-cap fund.

Recommendations for Portfolio Optimisation
Enhance Diversification
Add a balanced allocation to large-cap or flexi-cap funds for stability.

Diversification reduces risk and enhances long-term returns.

Monitor and Evaluate Performance
Regularly review fund performance to ensure alignment with goals.

Replace underperforming funds without hesitation.

Adjust Thematic and Sectoral Exposure
Limit thematic funds to a smaller portion of your portfolio.

Sector-focused funds are cyclical and require active monitoring.

Tax-Efficiency
Long-term equity fund gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term gains attract a 20% tax.

Consider tax efficiency while planning redemptions.

Importance of Regular Funds
Direct funds lack personalised guidance and portfolio tracking.

Investing through a Certified Financial Planner ensures regular reviews and professional advice.

Regular funds offer value-added services and align with long-term goals.

Final Insights
Your portfolio is well-structured for long-term growth but needs refinement.

Reduce concentration in mid-cap and thematic funds for better risk management.

Increase exposure to diversified and balanced funds for stability.

Seek professional guidance to optimise performance and adapt to market trends.

Your disciplined SIP approach will reward you over time. Stay consistent and review periodically.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

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

Money
I am 31 years, unmarried bachelor and lead celibacy. I have investment in equity mutual fund growth option cost of which is 20 lacs now valued at 45 lacs. I don't require this for next 30 years and reserve it for my retirement. Do I need to save now for retirement, or can I spend 99% of my current earning as I have a retirement corpus of Rs.45 lacs at current value. I have life cover of 1.5 cr and for health Rs.40 lacs and comfortably earning from MNC for my survival, healthy with no bad habits and lead a disciplined and minimalist life style. Please guide me do I need more retirement corpus, or the accumulated Corpus is enough for retirement. If so how much more corpus do i need?
Ans: You have shown excellent discipline. At age 31, you already have Rs.45 lacs in equity mutual funds. That’s a rare position to be in.

You lead a minimalist life. You are healthy. You don’t have dependents. You are earning well. You are living with purpose and clarity.

Still, retirement planning is not only about a lump sum today. It also needs a 360-degree analysis.

Let us now evaluate in detail if this Rs.45 lacs is enough for your retirement.

We will assess from lifestyle, inflation, investment risk, tax rules, personal values, and health perspective.

We will also answer your main question: Can you spend 99% of your earnings now?

Retirement Planning Is Not Only About Current Corpus
Rs.45 lacs looks large now. But you are 31. Retirement is 29 years away.

A rupee today won’t have the same value 30 years later.

With inflation, prices can rise 5x or even more by then.

Your current Rs.45 lacs may not buy much in 2054.

So it is not enough to just grow. It must grow faster than inflation.

What If You Don’t Add Any More Investment?
If you don’t invest any more for retirement now, your Rs.45 lacs must grow for 30 years.

Let us assess few key points:

If the investment is fully in equity, volatility is high.

Long-term returns can be rewarding, but not always predictable.

Also, equity mutual funds attract capital gains tax.

New rule: LTCG above Rs.1.25 lakh taxed at 12.5%.

This will reduce the final retirement corpus.

So you cannot assume all returns will be tax-free.

Impact of Inflation on Lifestyle
You are minimalist today. But that may not be the case at 60.

Even basic costs like food, rent, medicine, utilities will go up.

At 6% inflation, Rs.25,000 monthly expenses today may become Rs.1.5 lacs after 30 years.

Medical inflation is higher. You may need Rs.5 lacs per year for healthcare alone at retirement.

So the same Rs.45 lacs will lose value every year.

What If You Live Longer?
Longevity is increasing in India. You may live till 90 or 95.

That means 30 years working and 30+ years retired.

So retirement may last longer than your working life.

Your money has to work for you after 60.

Even a Rs.3 crore corpus at retirement may fall short if not planned properly.

Health Cover and Life Cover Are Good
Rs.1.5 crore term insurance is good.

Rs.40 lacs health cover is excellent. Keep renewing it.

But insurance is not a substitute for retirement planning.

Also, insurance does not build wealth.

You Have Time on Your Side
You are 31. That gives you 30 years to grow your corpus.

That is your biggest strength.

Small, consistent investing now can multiply your corpus over 30 years.

Even Rs.10,000 per month extra can change your future.

Can You Spend 99% of Earnings?
It is not wise to spend 99% of earnings even with Rs.45 lacs corpus.

It makes your life dependent on just one investment.

Also, it leaves no buffer for job loss, health crisis, or early retirement.

Spending most of your income will reduce your financial freedom later.

Risks of Not Saving Enough
Future jobs may not pay this well.

You may face burnout or wish to retire early.

Markets may not perform as expected.

Emergencies may force early withdrawal.

Expenses can rise unexpectedly.

What Should Be the Ideal Retirement Corpus?
There is no fixed number. It depends on your lifestyle.

Still, we can estimate based on some broad assumptions:

A basic retirement needs at least Rs.4 to 5 crores at age 60.

A comfortable life with travel, hobbies, and good healthcare needs Rs.6 to 8 crores.

A rich life with freedom and legacy needs Rs.10 crores or more.

You may not need all of it. But you must aim higher and stay flexible.

How Much More Corpus You Need?
You already have Rs.45 lacs.

Assuming 10% annual return, and no withdrawal for 30 years:

Your current Rs.45 lacs can become Rs.8 crores in 30 years.

But tax and inflation will reduce its value.

After adjusting, this may be worth only Rs.3 to 4 crores in real terms.

So yes, you are on the right path. But you are not done yet.

Should You Stop Saving Now?
No. Stopping now is not safe.

You should continue to invest at least 20% to 30% of income.

You don’t need to be aggressive.

But you must not stop completely.

Advantages of Continuing SIPs in Actively Managed Mutual Funds
Actively managed funds are more responsive to market changes.

They are driven by research and fund manager insights.

They can beat inflation better than passive options.

They help create real wealth over time.

You can invest through mutual fund distributor with CFP. That gives expert help.

Disadvantages of Direct Mutual Fund Investing
Direct funds seem cheaper. But they miss the human touch.

No professional reviews. No behavioural guidance.

You may exit in panic or enter at wrong time.

Mistakes in direct investing are costly.

Regular funds via a Certified Financial Planner offer support, reviews, and strategy.

Financial Planning Is Not Just About Corpus
Financial planning is lifelong.

You need a written retirement plan.

Include health, taxes, estate, and liquidity in that plan.

Set goals every 5 years and review progress.

Don’t think of corpus only. Think of financial independence.

Your Current Strengths
Strong investment of Rs.45 lacs

No dependents or liabilities

High income and low expenses

Health insurance and term cover

Discipline and minimalism

What You Can Do Now
Continue SIPs in actively managed funds via expert help

Review portfolio yearly with a Certified Financial Planner

Create a written retirement plan

Don’t touch your Rs.45 lacs till 60

Save 30% of income. Enjoy 70%.

Finally
You are doing well. You already have Rs.45 lacs at age 31. That shows foresight.

But retirement is not a fixed-point goal. It is a moving target with inflation and uncertainty.

You must not stop saving. Keep adding regularly. Small steps now can lead to a rich future.

Aim to build a Rs.6 to 8 crore corpus. That gives you safety, comfort, and peace.

Spending 99% now is risky. Don’t do that. Instead, reward yourself within limits. But keep investing for freedom.

Discipline today gives freedom tomorrow.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8329 Answers  |Ask -

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

Asked by Anonymous - May 09, 2025
Money
Sir, we had a dispute in our ancestral property we approached the court and the verdict said we are entitled to a portion of the property The dispute was the land was sold without our knowledge etc., after getting the verdict we got patta, registration in our name. Now we are planning to sell the land, a lawyer said get a ratification deed, I don't know what it is and also weather it is needed or not. The lawyer called us and said the the other party who has purchased the land illegally is not agreeing to sign and is asking money to settle the matter as he has purchased the land. Even after receiving court orders this kind of dodging is happening. The amount of money he is asking is senseless, even if I sell the land I wouldn't get that much amount, I am unable to put in writing many other problems kindly advise what next steps to take. also let me know what are all the documents to have as a owner. Thank you
Ans: You have taken rightful steps. Court verdict is in your favour. That shows your legal ground is strong.

But still, the other party is asking for money. That too, an unfair amount. You also mentioned a lawyer suggested getting a ratification deed. Let us try to understand the full situation and assess all possible options. We will also cover what documents are needed to prove your ownership.

This reply gives you a 360-degree view. It will help you make a sound and confident decision.

Understanding Your Current Legal Standing
You said the land was sold without your knowledge. That makes the original sale illegal. The court has agreed with you. That is a key win for you.

You now have patta and registration in your name. These are strong documents. They show you have legal title.

Based on this, you are now the legal owner. That means you have the full right to sell the land. But the buyer must also be confident. So legal clarity is very important.

What Is a Ratification Deed?
A ratification deed is a It confirms a past act done without proper authority. The current party gives approval to that act.

In your case, it seems the buyer who bought the land earlier is being asked to “ratify” that sale. That is, to agree that you are the rightful owner now.

This is not a mandatory document by law. But it is sometimes used to make the title stronger. Some buyers or their banks ask for it.

However, since the court has already ruled in your favour, you may not legally need it. You already have the stronger claim.

Why Is the Buyer Still Causing Issues?
The person who bought the land earlier might feel he lost money. He may think the sale to him was legal. But since the court disagreed, he now holds no right.

His demand for money is unjust. It is a pressure tactic. He is trying to recover his loss by troubling you.

You are not legally required to pay him. He has no power to stop your sale.

Assessing Options Now
You can now evaluate your next steps from three angles – legal, practical, and financial.

Legal Options
Talk to your lawyer again. Ask: is a ratification deed mandatory in your case?

Get a written legal opinion. This should clearly mention your rights and position.

File a complaint if the other party is threatening you or asking money.

Send a legal notice through your lawyer to that person. Mention that he has no right now.

Practical Options
Try selling to a buyer who trusts the court order. Show them all documents.

Explain clearly that title is clean. Show the judgment, patta, and registration.

Use a reputed real estate lawyer for the sale. That gives buyers more confidence.

Financial Assessment
Do not agree to pay huge amounts. It may cause loss for you.

If needed, consider a small settlement. But only after full legal review. And only if it makes the sale smooth and quick.

Ask yourself: Even if I settle, will the person agree to give in writing? If not, don’t pay.

Must-Have Documents to Sell the Land
As a rightful owner, you must hold the following papers:

Patta in your name (this is land ownership proof)

Registered sale deed or title deed (issued after the court judgment)

Copy of the court verdict

Encumbrance Certificate (EC) (shows your name as the current legal holder)

Legal heir certificate, if you inherited the land

Property tax receipts in your name

Aadhar and PAN card copies

Suggested Steps to Make Sale Smooth
Get a detailed Title Certificate from a lawyer. It should mention the court case and outcome.

Keep a summary note ready. It should explain how you became owner.

Ensure name match across all your documents.

Keep a certified copy of court order with you at all times.

Use a reputed property consultant or broker only if needed. Prefer buyers who are local and familiar with such cases.

Emotional and Mental Pressure
You also mentioned you are facing many other issues. That is understandable. Land disputes take a heavy toll on health and peace of mind.

Please do not worry. You already have legal strength.

You have cleared a big milestone by getting the court’s support.

Don’t allow fear or threats to stop you.

Stay strong. Keep family informed. Talk regularly with your lawyer.

How Certified Financial Planner Can Help
A Certified Financial Planner (CFP) can guide you better with your sale proceeds.

If you plan to sell, prepare a written cash flow plan.

Think about your family’s short-term and long-term needs.

Keep emergency funds aside. Don’t invest all money at once.

Mutual funds managed by professional advisors can be considered. They offer long-term wealth building.

What Not To Do
Do not deal in cash. Always use cheque or bank transfer.

Do not sign any paper without lawyer check.

Do not get emotionally disturbed by their false threats.

Do not delay your next steps due to confusion or fear.

Finally
You have shown good courage. You followed the legal process. You now own the land as per law.

The other party is only trying to misuse your fear. Do not fall for it.

If the buyer still refuses to cooperate, avoid them. Choose another buyer.

If a ratification deed is insisted by your new buyer, ask your lawyer: Is it really needed?

If not needed, move ahead without it.

If needed, try again to convince the other person. If they demand unreasonable money, don’t agree.

Let your lawyer send notice. You can also explore police help if needed.

Always work with proper documents. Keep everything in writing.

Keep calm and move forward. With legal support and proper documents, you will win.

If you need help with managing the money after sale, we can help with a long-term financial plan.

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

...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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