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32-Year-Old Aims for Rs. 15 Crore: Can I Reach My Financial Goal?

Ramalingam

Ramalingam Kalirajan  |8291 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 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
Asked by Anonymous - Jul 01, 2024Hindi
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Hi Sir, I am a 32 year old (Private sector employee) with annual earning of 1.1 lakhs per month living with my wife in Hyderabad. I have a corpus of Rs. 6,00,000 through mutual funds, wherein I invest Rs. 25,000/month (divided in large-cap, small-cap, mid-cap and flexi-cap), Voluntary PF savings account in which I have started saving 10,000/month from January , 2024. I also have Home loan, personal loan for which I pay EMIs of Rs. 43,000 on monthly basis. My long-term target is to accumulate Rs. 15 crore by the age of 48-50 years. Please guide on the correct pathway to reach tht goal.

Ans: Current Financial Status

At 32, you have a good income and investment habit. Your annual earning is Rs 1.1 lakhs per month. Your investments and savings include:

Mutual Funds: Rs 6,00,000 corpus with Rs 25,000/month investment.
Voluntary PF: Rs 10,000/month started from January 2024.
EMIs: Rs 43,000/month for home loan and personal loan.
You aim to accumulate Rs 15 crores by 48-50 years.

Evaluating Investments

Your current investments are a good mix. Here’s an evaluation:

Mutual Funds: Investing in large-cap, small-cap, mid-cap, and flexi-cap funds is wise. This provides diversification and growth potential.
Voluntary PF: This is a good addition for long-term stability and tax benefits.
Loan Repayment Strategy

Your EMIs are Rs 43,000/month. Paying off loans early can free up more funds for investment.

Prioritize High-Interest Loans: Pay off personal loans first if they have higher interest rates.
Consider Prepayments: Use bonuses or windfall gains to make prepayments on your home loan.
Increasing Investments

To reach your goal of Rs 15 crores, you need to increase your investments. Consider the following:

Increase SIP Amount: Gradually increase your SIP in mutual funds. Aim to invest a higher percentage of your income.
Additional Investments: Consider other growth-oriented options like equity mutual funds. Avoid direct funds; regular funds through an MFD with CFP credentials offer better management.
Tax Efficiency

Utilize Tax Benefits: Maximize tax-saving investments under Section 80C, 80D, and 80CCD.
Review Tax Plans: Regularly review your tax-saving instruments to ensure efficiency.
Emergency Fund

An emergency fund is crucial. Aim to save at least 6-12 months of expenses in a liquid fund. This provides a safety net for unexpected events.

Insurance Coverage

Health Insurance: Ensure you have adequate health coverage for you and your family.
Life Insurance: Opt for a term insurance plan. This secures your family's future in case of any unforeseen event.
Retirement Planning

Set Clear Goals: Define your retirement lifestyle and expenses.
Regular Contributions: Continue regular contributions to your retirement funds like PF and mutual funds.
Regular Review and Adjustment

Monitor Investments: Regularly review your portfolio’s performance. Adjust based on market conditions and life changes.
Certified Financial Planner: Consult a Certified Financial Planner for personalized advice. They can help you stay on track with your goals.
Disadvantages of Direct and Index Funds

Direct funds might seem cost-effective but can be time-consuming and require expertise. Index funds lack flexibility and may underperform actively managed funds. Regular funds through an MFD with CFP credentials provide better professional management.

Final Insights

You have a strong foundation with your current investments and savings. To reach Rs 15 crores by 48-50 years, increase your investments, manage loans efficiently, and ensure tax efficiency. Regularly review your financial plan and consult a Certified Financial Planner for tailored advice. This will help you achieve your financial goals and secure your future.

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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Sir my daughter got 90% in jee mains she can get NIT cse course sir I. Am genral category
Ans: Miranalini Madam, Here is, How to Predict Your Daughter's Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your daughter's admission chances based on the previous year’s data.

Step-by-Step Guide to Check Her Admission Chances Using JoSAA Data
Step 1: Collect Her Key Details
Before starting, note down the following details:

Her JEE Main percentile
Her category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Her Preferred institute types (NIT, IIIT, GFTI)
Her Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If she is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on her preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Her Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State your daughter belongs to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Her Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust her expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your daughter's admissions!

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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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