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Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 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
Unmesh Question by Unmesh on May 15, 2024Hindi
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Greetings!! I am 33 years old, working as a civil engineer residing in Chennai with a family of four [ wife and two daughters]. I am earning Rs. 80,000 per month. My investment portfolio is given as below:- 1 LIC - Single Premium Endowment Plan Rs 10,00,000/- 2. LIC - New Money Back Plan - 25 yrs 821 Sum Assured Rs. 5,00,000/- 3. Public Provident Fund Rs. 1,50,000 P.A. 4. Sukanya Samriddhi Yojana Rs. 1,50,000 P.A. 5. Mutual Funds: SIP - Equity Funds Rs. 10,000 per month 6. Mutual Funds: Lumpsum - Equity Funds Rs. 20,00,000 My investment goal is to have a retirement corpus of Rs. 10 Cr. In this regard, I would like to request the following advice: - 1. Whether my investments are on the right track to achieve my goals or should I alter my investment portfolio ? 2. Are there any alternative options to generate passive income to strengthen my financial situation ? Looking forward to hearing from you.

Ans: Strategic Financial Planning for Retirement
Greetings! It's impressive to see your commitment to securing your family's financial future through thoughtful investments. Let's review your current portfolio and explore potential adjustments to align with your retirement goal.

Evaluating Current Investments
Genuine Compliments: Your dedication to financial planning for your family's well-being is truly commendable.

Empathy and Understanding: I understand the importance of ensuring a comfortable retirement for you and your loved ones, given your responsibilities and aspirations.

Assessing Investment Portfolio
Insurance-Cum-Investment Plans: Consider surrendering your LIC policies, as they may not offer optimal returns compared to other investment options.
Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY): These are excellent choices for long-term savings, providing tax benefits and stable returns.
Mutual Funds (MF): Your SIPs and lumpsum investments in equity funds are well-suited for long-term wealth accumulation, given their potential for higher returns.
Aligning with Retirement Goals
Reallocating Surrendered Amount: Reinvest the proceeds from surrendering LIC policies into mutual funds to benefit from potentially higher returns.
Retirement Corpus Target: Your goal of accumulating a retirement corpus of Rs. 10 Crores is ambitious but achievable with strategic planning and disciplined investing.
Passive Income Options: Explore avenues like dividend-paying stocks, rental income from real estate (if suitable), or systematic withdrawal plans (SWP) from mutual funds to generate passive income streams.
Benefits of Regular Funds Investing through MFD with CFP Credential
Certified Financial Planners can provide personalized advice and ongoing portfolio management, ensuring your investments align with your retirement goals.
Mutual Fund Distributors with CFP credentials offer expertise and guidance to optimize your investment portfolio for long-term growth and stability.
Conclusion
By reallocating your investments, focusing on high-return options like mutual funds, and seeking guidance from a Certified Financial Planner, you can enhance your chances of achieving your retirement goal and securing a financially stable future for your family.

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  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 11, 2024

Asked by Anonymous - Apr 11, 2024Hindi
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Hello sir, I earn monthly as 1.84 lakh.I spend 60% of my salary in living expense and 40% as savings I spend 11000 in mutual funds which include 5000 in HDFC balanced advantage fund, 2000 in eledweiss mutual fund,3000 in motilal oswal midcap fund direct growth. Have added step up of 20% in each one,also I spend 10000 in NPS and 5000 in PPF every month. This all saving I have started last year. My age is 40 currently. I have a target to generate 2 cr alteast till I reach 60. Will this be possible with this much investment or not, if not how much should I invest monthly. Also I am not able to have emergency fund. How should I manage my financial planning. Also what can be source of passive income. I not good in share market or digital marketing stuffs. Please suggest
Ans: It's great that you're actively saving and investing for your future. However, to achieve your goal of accumulating ?2 crore by the time you're 60, you may need to adjust your investment strategy and consider a few factors:

Emergency Fund: It's crucial to have an emergency fund to cover unexpected expenses, such as medical emergencies or job loss. Aim to save at least 3-6 months' worth of living expenses in a liquid and easily accessible account.

Investment Allocation: While investing in mutual funds, consider diversifying your portfolio across different asset classes such as equity, debt, and hybrid funds to manage risk effectively. Also, review your investment choices periodically to ensure they align with your goals and risk tolerance.

Increasing Investments: To reach your target of ?2 crore by age 60, you may need to increase your monthly investments. Consider using a financial calculator or consulting a financial advisor to determine the monthly contribution required based on your expected rate of return and time horizon.

Passive Income Sources: Explore passive income streams such as rental income from real estate properties, dividends from stocks or mutual funds, or interest from fixed deposits or bonds. These sources can provide additional income without requiring active involvement.

Financial Planning: Consider consulting with a certified financial planner who can help you create a comprehensive financial plan tailored to your goals, risk tolerance, and financial situation. They can also provide guidance on optimizing your investments and achieving financial security.

Remember, achieving long-term financial goals requires discipline, patience, and periodic review of your financial plan. By making informed decisions and staying committed to your goals, you can work towards building a secure financial future.

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 07, 2024Hindi
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Hi, I am a 35y old single Male. My target is to retire at 50 with a corpus of 25 Crores. Currently, the worth of my portfolio is 1.25 Crore with 75 lakhs in MFs, 25 lakhs in NPS, 10 lakh in PPF, 10 lakh in SGB and about 5 lakhs in Cash and Stocks. My monthly investment is 90k in MFs and annual investment in PPF and SGB is 1.5 lakhs each. I have a 2Bhk house in Pune and my after-tax salary is 2 lakhs/month. My company takes care of my accommodation and my regular monthly expenses are about 50k/month. Do you want to suggest any other plans or am I doing alright keeping my goal in mind? Currently, the MFs are weighted about 50% Small cap, 25% Mid and flexi cap and 25% Large cap.
Ans: Your dedication to financial planning is commendable, especially with a clear retirement goal in mind. Let's delve into your current situation and discuss potential adjustments:

Your current portfolio allocation seems well-diversified, with a significant portion invested in mutual funds, NPS, PPF, SGB, and some cash and stocks. This mix offers a balance of growth and stability.

Your monthly investments and annual contributions to PPF and SGB reflect a disciplined savings approach. It's crucial to maintain this consistency to achieve your retirement target.

Your 2BHK house in Pune is an asset that adds to your net worth and provides security. It's great that your company covers your accommodation expenses, easing your financial burden.

With your after-tax salary and monthly expenses, you have a surplus for investments, which is a positive sign. It's essential to ensure that this surplus is utilized efficiently towards your retirement goal.

Considering your goal of accumulating a corpus of 25 Crores by the age of 50, it might be beneficial to reassess your asset allocation strategy. While your current allocation is diversified, you may want to tilt it slightly towards more conservative options as you approach retirement age.

Given your aggressive investment approach, you might consider gradually shifting towards a more balanced portfolio with a higher allocation to large-cap and balanced funds, which are comparatively less volatile.

Additionally, exploring other investment avenues such as direct equity, debt funds, or alternative investments could further diversify your portfolio and potentially enhance returns.

Regularly reviewing your portfolio's performance and rebalancing it as needed is crucial to stay on track towards your retirement goal.

Overall, you're on the right track with your financial planning efforts. Continue with your disciplined approach, stay informed about market trends, and seek professional advice if needed to optimize your portfolio further.

Keep up the excellent work, and with persistence and smart decision-making, you're well-positioned to achieve your retirement target!

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jul 19, 2024Hindi
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Dear Ramalingam , Current portfolio stands like this PMS @ 2 value 50L each. SIP ?4L per month and pushing by end of yr another ?1L in Def sector . Overseas property and investment property and shares 825K @ current evaluation ?70 @ each . 45 yrs 1 kid on way ??. Want to retire at 60 passive income of ?8L per month . Advice .
Ans: Current Financial Snapshot
Portfolio:

PMS: Rs 1 crore (2 PMS at Rs 50 lakh each)
SIP: Rs 4 lakh/month
Planned SIP increase: Rs 1 lakh/month
Overseas property and investment property: Rs 70 lakh each
Shares: Rs 8.25 lakh
Age: 45 years

Goal: Retire at 60 with Rs 8 lakh/month passive income

Family: One child on the way

Analysis and Insights
Current Investments:

Diversified across PMS, SIPs, properties, and shares.
High monthly SIP shows strong commitment to investing.
Passive Income Goal:

Rs 8 lakh/month is ambitious.
Requires a strategic investment approach.
Recommended Strategy
1. Increase SIP Contributions:

Current SIP: Rs 4 lakh/month
Planned increase: Rs 1 lakh/month
Aim for annual SIP increases of 10-15%.
2. Diversify Across Asset Classes:

Balance equity, debt, and alternative investments.
Focus on actively managed mutual funds over index funds for better returns.
3. Rebalance Portfolio:

Review asset allocation annually.
Adjust based on market conditions and goals.
4. Property Investments:

Avoid real estate as a primary investment.
Focus on high-growth potential sectors.
Detailed Investment Plan
1. Equity Mutual Funds:

Allocate 60-70% to equity mutual funds.
Diversify across large-cap, mid-cap, and flexi-cap funds.
2. Debt Mutual Funds:

Allocate 20-30% to debt mutual funds.
Provide stability and regular returns.
3. Alternative Investments:

Explore international funds, gold ETFs, and sector-specific funds.
Limit exposure to high-risk sectors.
Steps to Achieve Financial Goals
1. Annual Reviews:

Review investments quarterly.
Adjust based on performance and market trends.
2. Increase SIP Gradually:

Start with Rs 5 lakh/month.
Increase by 10-15% annually.
3. Emergency Fund:

Maintain a sufficient emergency fund.
Covers 6-12 months of expenses.
Final Insights
Disciplined Investing: Stay committed to your investment plan.
Diversification: Spread investments across asset classes for balanced growth.
Regular Monitoring: Review and rebalance your portfolio regularly.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

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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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