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37-Year-Old Seeking 40 Lakhs in 4 Years - Advice Needed

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 14, 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 29, 2024Hindi
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I am 37 year old with monthly income of 30k looking for 40 lacs amount in next 4 years.currently I have per month 26 k around expenses.my wife is also working but didn't get so much, just earned 22k per month.will you please guide me how to get said amount within 5 years.

Ans: You’re earning Rs 30k monthly, while your wife earns Rs 22k. Your combined income is Rs 52k per month. With expenses of Rs 26k, you have Rs 26k left for savings and investments each month.

To accumulate Rs 40 lakhs in 4 years, strategic planning is essential. Let’s break down the steps to achieve this goal.

Savings Potential

Monthly Savings: Rs 26k can be allocated towards investments.

Emergency Fund: Before investing, ensure you have an emergency fund. This fund should cover 6 months of expenses, approximately Rs 1.56 lakhs. This will provide a safety net for unforeseen circumstances.

Investment Strategy

To reach Rs 40 lakhs in 4 years, you’ll need a disciplined investment approach. Let’s explore the most effective options:

Systematic Investment Plan (SIP)

Equity Funds: Consider allocating a significant portion to equity mutual funds. Equity funds offer higher returns over the long term. Given your time frame, equity exposure is suitable.

Balanced Funds: These funds provide a mix of equity and debt. They offer stability with decent returns, reducing overall portfolio risk.

Fixed-Income Investments

Debt Funds: These funds are less volatile and offer steady returns. A portion of your investments in debt funds can provide stability to your portfolio.

Recurring Deposits (RD): You can consider RDs if you prefer safe, fixed returns. However, the returns are usually lower than equity funds.

Investing in Gold

Gold Bonds or ETFs: Allocating a small portion to gold can act as a hedge against inflation. Gold usually performs well during economic uncertainty.

Avoiding Index Funds

Actively Managed Funds: Index funds have low management fees but may not provide the returns you need in 4 years. Actively managed funds, guided by experienced fund managers, can outperform the market and provide better returns.

Regular Funds vs Direct Funds

Regular Funds: Regular funds come with expert guidance from a Certified Financial Planner. This ensures your investments align with your financial goals. The additional cost of regular funds is justified by the professional management and personalized advice.

Strategic Asset Allocation

Equity Allocation: Given your goal and timeline, consider allocating around 70% of your investments to equity funds.

Debt Allocation: The remaining 30% can be allocated to debt funds or other fixed-income investments. This balance reduces risk while targeting the growth needed to achieve Rs 40 lakhs.

Tax-Efficient Investments

Equity Linked Savings Schemes (ELSS): These schemes provide tax benefits under Section 80C while offering equity exposure. This can reduce your taxable income and enhance overall returns.

PPF and EPF: Consider these if you’re looking for long-term, tax-efficient investments. However, their lock-in periods may not align with your 4-year goal.

Monitoring and Rebalancing

Regular Review: Review your investments quarterly. This helps ensure you’re on track to meet your Rs 40 lakh target. Rebalancing your portfolio can optimize returns and manage risk.

Stay Disciplined: Avoid withdrawing from your investments unless necessary. Maintaining discipline will help you reach your goal within the desired time frame.

Final Insights

Emergency Fund First: Ensure you have an emergency fund before investing.

Balanced Allocation: Focus on equity funds with a 70% allocation. The remaining 30% should be in debt funds.

Professional Guidance: Opt for regular funds with advice from a Certified Financial Planner. This will align your investments with your goal.

Avoid Index Funds: Index funds may not provide the necessary growth. Actively managed funds offer better potential returns.

Stay Disciplined: Regularly review and rebalance your portfolio. Consistency is key to achieving your Rs 40 lakh goal in 4 years.

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  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2024

Money
Hi sir I am 40 YO single women earning 1.10 lacs annually. I wish to retire at 45. My savings and investments - House 75 lacs (loan of Rs 14.50 lacs) Mutual funds total 47 lacs ( SIPs ongoing Rs 25k) PPF 5.84 lacs Gold 11 lacs Car 6 lacs A land 30 lacs ( planning to construct double story for rent purpose - passive income. I want a regular income of atleast 50000/- as I don't have any such liability of parents or kids. I do donations regularly and also pay for my sister's daughter school fees around 1.5 lacs yearly at present ( will paying for another 3-4 years ) Kindly guide me
Ans: I appreciate your detailed information. Let’s dive deep into your current situation and plans, and evaluate the best strategies to ensure a comfortable and financially secure retirement by age 45.

Assessing Current Financial Status
Income and Savings Overview
Your annual income of Rs 1.10 lacs is a crucial factor. It's important to maximise savings and investments. Currently, you have several investments, including mutual funds, PPF, gold, and real estate.

Investments and Liabilities
House: Worth Rs 75 lacs with an outstanding loan of Rs 14.50 lacs.
Mutual Funds: Total of Rs 47 lacs with ongoing SIPs of Rs 25,000 monthly.
PPF: Rs 5.84 lacs.
Gold: Valued at Rs 11 lacs.
Car: Worth Rs 6 lacs.
Land: Valued at Rs 30 lacs, with plans to build a double-story house for rental income.
Expenditures and Commitments
You have regular expenses such as donations and school fees for your sister's daughter. These are commendable commitments that reflect your generosity and family support.

Strategic Financial Planning for Retirement at 45
Evaluating Retirement Goal
Your aim is to retire at 45, which is just five years away. A key part of this goal is to ensure you have a regular income of Rs 50,000 post-retirement. Let’s evaluate how your current investments and potential strategies can help achieve this.

Investments and Their Potential
Mutual Funds
Your ongoing SIPs and mutual fund investments are commendable. These are likely generating good returns, but it's important to regularly review the performance. Actively managed funds can offer better returns compared to index funds, which may not beat the market consistently.

Regularly monitoring your mutual funds with a Certified Financial Planner can help optimize your portfolio. Actively managed funds benefit from expert management, and these experts can navigate market fluctuations better than passive index funds.

PPF
Your PPF account is a secure, tax-efficient investment. It provides steady growth with government backing. Continue investing in PPF, but remember it has a lock-in period. It will be a solid part of your retirement corpus due to its reliability and tax benefits.

Gold
Gold is a good hedge against inflation. However, it doesn’t generate regular income. Consider holding onto gold as a part of your emergency fund or for long-term capital appreciation, but don’t rely on it for regular income.

Managing Real Estate
House and Loan
Your house is a significant asset. Ensure timely repayments of the Rs 14.50 lacs loan to avoid unnecessary interest. Once the loan is cleared, it will be a substantial part of your net worth.

Land Development
Constructing a double-story house on your land for rental income is a smart move. This can provide a steady passive income. However, construction costs and timeframes should be carefully planned. Ensure you have sufficient funds or financing options in place to avoid cash flow issues during construction.

Optimizing Investment Strategies
Mutual Fund Optimization
While you have substantial investments in mutual funds, it’s crucial to review your portfolio regularly. Actively managed funds should be preferred as they tend to outperform index funds due to professional management. They adjust portfolios based on market conditions, unlike index funds that passively follow market trends.

Regular vs Direct Funds
Investing through regular funds with a Certified Financial Planner can be beneficial compared to direct funds. Regular funds provide professional advice, helping you make informed decisions and manage your portfolio effectively. Direct funds might seem cost-effective, but without professional guidance, you might miss out on better opportunities or fail to manage risks properly.

Balancing Risk and Returns
Diversification is key to managing risk. Your current portfolio is diversified across various asset classes. Continue this practice but adjust the proportions as per market conditions and financial goals. For instance, you may want to reduce exposure to riskier assets as you near retirement.

Financial Discipline and Planning
Budgeting and Saving
Ensure you have a clear budget. Track your expenses meticulously. Automate your savings and investments to stay disciplined. This will help in building a substantial retirement corpus over the next five years.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of your expenses. This fund should be easily accessible and separate from your retirement corpus. This ensures you’re prepared for any unexpected financial needs without disrupting your long-term goals.

Retirement Income Planning
Passive Income Sources
Your plan to generate rental income from the newly constructed double-story house is excellent. Ensure the property is in a desirable location to attract tenants and secure a stable income stream.

Withdrawal Strategy
Plan a withdrawal strategy from your retirement corpus. Systematic Withdrawal Plans (SWPs) from mutual funds can provide regular income. This approach ensures that your principal continues to grow while you receive regular income.

Additional Considerations
Insurance Coverage
Ensure you have adequate health and life insurance coverage. Health insurance is critical as medical costs can be significant. Life insurance will provide financial security to your dependents if any unforeseen event occurs.

Estate Planning
Consider creating a will and possibly setting up a trust. This ensures that your assets are distributed according to your wishes and can also provide tax benefits.

Monitoring and Reviewing
Regular Reviews
Regularly review your financial plan with a Certified Financial Planner. Markets and personal situations change, and your plan should be flexible enough to adapt. A CFP can provide the necessary expertise to navigate these changes effectively.

Staying Informed
Stay informed about market trends and economic changes. This knowledge can help you make informed decisions and adjust your financial strategies accordingly.

Final Insights
Retiring at 45 is an ambitious yet achievable goal with disciplined financial planning and strategic investments. Your current investments in mutual funds, PPF, and gold provide a strong foundation. However, optimizing your mutual fund portfolio with actively managed funds and professional guidance can yield better returns.

Constructing a rental property is a smart move for passive income, but ensure it’s well-planned financially. Regularly review your investment strategy and stay disciplined with your savings and expenses. With proper planning and execution, you can achieve financial independence and enjoy a comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2024

Asked by Anonymous - Jun 25, 2024Hindi
Money
Currently I am working and having 14 lac in ppf, mutual fund 27lac, shares I have 10 lacs, other investment around 10 lacs. I don't have own house staying with my parents. Currently earning around 1.5 lac month. My current age is 39, want to retire next year. Can you please advise how to generate income for my family having 2 kids and wife.
Ans: First, let me appreciate your disciplined approach to savings and investments. At 39, you have accumulated a substantial amount in PPF, mutual funds, shares, and other investments. Your total assets sum up to around Rs 61 lakhs, and you are earning a good salary of Rs 1.5 lakh per month. Planning to retire next year is a significant decision, especially with a family to support. Let's explore a comprehensive plan to generate income for your family post-retirement.

Assessing Your Current Financial Situation
PPF (Public Provident Fund)
Your PPF account has Rs 14 lakh. PPF is a safe and tax-efficient investment but has a lock-in period of 15 years. It provides steady returns but limited liquidity.

Mutual Funds
With Rs 27 lakh in mutual funds, you have exposure to market-linked returns. Mutual funds offer growth potential but come with market risks.

Shares
Your Rs 10 lakh investment in shares indicates a higher risk tolerance. Shares can provide high returns but also come with volatility.

Other Investments
Your other investments total Rs 10 lakh. These could include a mix of fixed deposits, bonds, or other financial instruments, providing stability and diversification.

Income Generation Strategies Post-Retirement
Systematic Withdrawal Plan (SWP) from Mutual Funds
An SWP allows you to withdraw a fixed amount regularly from your mutual fund investments. This can provide a steady income stream while keeping your principal invested for growth.

Dividend-Paying Stocks and Mutual Funds
Invest in dividend-paying stocks and mutual funds. These provide regular income in the form of dividends, supplementing your cash flow needs.

Monthly Income Plans (MIPs)
MIPs are mutual funds that invest in debt and equity, aiming to provide regular income. They are less risky than pure equity funds and can offer steady returns.

Senior Citizens' Savings Scheme (SCSS)
Once you turn 60, consider SCSS for a safe and regular income source. It offers attractive interest rates and is backed by the government.

Debt Mutual Funds
Investing in debt mutual funds can provide stable returns with lower risk compared to equity funds. These funds invest in bonds and fixed-income securities.

Fixed Deposits (FDs)
Fixed deposits provide guaranteed returns with high safety. Although the returns are lower compared to equity, they offer stability and security.

Planning for Children's Education and Family Expenses
Children's Education Fund
Start a dedicated investment fund for your children's education. Equity mutual funds or balanced funds can be suitable for long-term growth.

Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of expenses. This ensures liquidity for unforeseen expenses without disrupting your investments.

Health Insurance
Ensure you have adequate health insurance coverage for yourself and your family. Medical emergencies can be financially draining without proper insurance.

Managing Expenses and Budgeting
Expense Tracking
Track your monthly expenses meticulously. Identify areas where you can cut down costs without compromising your lifestyle.

Budget Planning
Create a detailed budget for post-retirement expenses. Include all necessary expenses such as household, education, medical, and discretionary spending.

Lifestyle Adjustments
Consider lifestyle adjustments to align with your new income level post-retirement. Small changes can lead to significant savings.

Risk Management and Diversification
Diversified Portfolio
Maintain a diversified portfolio to spread risk. Invest across different asset classes like equity, debt, and balanced funds.

Regular Portfolio Review
Review your investment portfolio regularly. Market conditions change, and it’s crucial to rebalance your portfolio to stay aligned with your goals.

Tax Planning and Optimization
Tax-Efficient Investments
Invest in tax-efficient instruments like ELSS (Equity-Linked Savings Scheme) for tax savings under Section 80C. Optimize your portfolio to minimize tax liabilities.

Retirement Corpus Withdrawal Strategy
Plan your withdrawal strategy to minimize tax impact. Withdraw from tax-exempt sources like PPF and use tax-efficient SWPs.

Seeking Professional Guidance
Certified Financial Planner (CFP)
Working with a CFP provides personalized advice and strategic planning. A CFP can help you navigate financial decisions and optimize your investment strategy.

Financial Workshops and Seminars
Attend financial workshops and seminars to stay updated on investment strategies and market trends. Continuous learning can enhance your financial acumen.

Creating a Legacy and Estate Planning
Will and Estate Planning
Draft a will to ensure your assets are distributed as per your wishes. Estate planning is crucial to provide financial security to your family.

Nomination and Beneficiaries
Ensure all your investments have the correct nomination details. This simplifies the process for your family in case of any eventuality.

Final Insights
Planning to retire at 40 with a family to support requires meticulous financial planning. Your current investments in PPF, mutual funds, shares, and other instruments provide a strong foundation. To generate regular income post-retirement, consider strategies like Systematic Withdrawal Plans (SWP) from mutual funds, dividend-paying stocks, Monthly Income Plans (MIPs), and debt mutual funds.

Maintain an emergency fund and ensure adequate health insurance coverage. Budget planning and expense tracking are essential to align your lifestyle with your new income level. Regularly review and rebalance your portfolio to stay on track with your financial goals.

Working with a Certified Financial Planner (CFP) can provide valuable guidance and optimize your investment strategy. Consider tax-efficient investments and plan your withdrawals to minimize tax impact. Estate planning and drafting a will ensure your family's financial security.

Your disciplined approach to savings and investments, combined with strategic planning, will help you achieve financial stability post-retirement. Stay focused on your goals, and with the right strategies, you can secure a comfortable and fulfilling retirement for yourself and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2024

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Hello Sir, I am 55 running. Running small Engineering Unit. Wife 50 working in Pvt Ltd Company. We both earn Rs 1.5 Lacs a month. I have loan on my unit worth Rs 1.3 Lacs per month till 2025. I have MF 1.3Cr, PPF 53L , FDs 30 L, HDFC policy 31L getting matured in 2027. Expenses daughter is MDS in 2nd year. yearly fees 15 L, Son in 3rd year B'tech fr NIT. Would like to have 5 cr at the age 60, Pl guide....
Ans: Understanding Your Financial Goals
Age: 55
Wife's Age: 50
Combined Monthly Income: Rs 1.5 lakh
Monthly Loan EMI: Rs 1.3 lakh until 2025
Children: Daughter in MDS (fees Rs 15 lakh/year), Son in 3rd year B'Tech at NIT
Current Investments
Mutual Funds: Rs 1.3 crore
PPF: Rs 53 lakh
Fixed Deposits (FDs): Rs 30 lakh
HDFC Policy: Rs 31 lakh (maturing in 2027)
Financial Goals
Retirement Corpus: Rs 5 crore by age 60
Investment Strategy
Increasing Mutual Fund Contributions
Continue SIPs: Keep investing in mutual funds for growth.
Focus on Actively Managed Funds: These can provide better returns than index funds.
Diversify: Invest in large-cap, mid-cap, and balanced funds for stability and growth.
Enhancing Fixed Deposits
Reinvest Maturing FDs: Put maturing FDs into higher-yield debt funds.
Avoid Long-Term Lock-in: Keep some funds in short-term FDs for liquidity.
Maximizing PPF
Annual Contributions: Maximize your PPF contributions for tax-free returns.
PPF Maturity: Align PPF maturity with your retirement goals.
Utilizing HDFC Policy
Hold Till Maturity: Let the policy mature in 2027 to receive Rs 31 lakh.
Reinvest Proceeds: Reinvest the maturity amount into mutual funds or debt funds for growth.
Loan Repayment Strategy
Pay Off Loan: Focus on repaying your loan by 2025.
Free Up Income: Post-loan, redirect Rs 1.3 lakh EMI into investments.
Children's Education
Daughter’s MDS Fees: Continue to pay Rs 15 lakh/year until completion.
Son’s Education: Ensure funds are available for his B'Tech completion.
Insurance and Safety Nets
Life Insurance
Term Insurance: Ensure you have adequate term insurance.
Policy Review: Reevaluate your HDFC policy upon maturity.
Health Insurance
Adequate Coverage: Ensure comprehensive health insurance for your family.
Regular vs Direct Mutual Funds
Disadvantages of Direct Funds
Complex Management: Requires significant time and expertise.
Risk of Mistakes: Higher risk without professional guidance.
Benefits of Regular Funds
Professional Guidance: Managed by Certified Financial Planners (CFPs).
Easier Management: Less time-consuming and easier to track.
Final Insights
Stay Focused: Keep your retirement goal of Rs 5 crore in mind.
Regular Reviews: Periodically review your investments and adjust as needed.
Disciplined Saving: Stay disciplined with your savings and investments.
Emergency Fund: Maintain an emergency fund for unforeseen expenses.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

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

Money
I guess there was some misunderstanding. My total combine monthly income is 45k only. Monthly expenses are around 30K per month. Need to have 20 lacs in next 4-5 years. Please help me with best suggestions.
Ans: Sorry for the confusion. Please check the below analysis of yours.

You are 37 years old, married, and have a monthly household income of Rs. 45,000. You have two children aged 9 and 5, who are currently studying. Your monthly expenses are around Rs. 30,000, leaving you with a surplus of Rs. 15,000. You are planning to buy a house and need to save Rs. 20 lakhs for a down payment within the next 5 to 10 years.

Setting Clear Financial Goals
Saving Rs. 20 lakhs for a house down payment is a significant goal. It requires disciplined saving and smart investment strategies. Let's break down how you can achieve this goal.

Creating a Savings Plan
Monthly Savings Allocation:

Since you have a surplus of Rs. 15,000, you can allocate a substantial portion of this towards your house down payment savings.

Consider saving at least Rs. 10,000 per month specifically for this goal. This disciplined approach will help you accumulate the necessary funds over time.

Emergency Fund:

Ensure that you have an emergency fund equivalent to 6 to 12 months of your monthly expenses. This fund will act as a safety net and prevent you from dipping into your house savings in case of unexpected expenses.

Your monthly expenses are Rs. 30,000, so aim to have an emergency fund of Rs. 1.8 lakhs to Rs. 3.6 lakhs.

Investment Options for Goal Achievement
To achieve your goal of saving Rs. 20 lakhs within 5 to 10 years, you need to invest your savings in options that offer higher returns compared to traditional savings accounts. Here are some investment options to consider:

Recurring Deposits (RDs):

Recurring Deposits are a safe and disciplined way to save a fixed amount every month. They offer better returns than a regular savings account.

You can start an RD with your bank for the amount you plan to save monthly (e.g., Rs. 10,000).

Debt Mutual Funds:

Debt Mutual Funds invest in fixed-income securities and are less risky compared to equity funds. They provide better returns than traditional fixed deposits.

You can consider investing a portion of your savings in short-term and medium-term debt mutual funds.

Balanced or Hybrid Mutual Funds:

Balanced or Hybrid Mutual Funds invest in a mix of equity and debt instruments. They offer a balance of risk and return.

These funds can provide moderate growth with controlled risk. You can start a Systematic Investment Plan (SIP) in these funds.

Public Provident Fund (PPF):

PPF is a long-term savings scheme with tax benefits. It offers attractive interest rates and is a safe investment option.

Although the lock-in period is 15 years, partial withdrawals are allowed after the 7th year. Consider this option if you are planning for a longer investment horizon.

Systematic Investment Plans (SIPs)
Starting SIPs in Mutual Funds is a disciplined way to invest regularly and build a corpus over time. Given your goal, you can consider SIPs in the following categories:

Equity Mutual Funds:

Equity Mutual Funds have the potential to offer high returns. They are suitable if you have a higher risk appetite and a longer investment horizon.

Consider investing a smaller portion of your savings in equity funds for potential higher returns.

Debt Mutual Funds:

As mentioned earlier, debt funds are safer and provide stable returns. Allocate a significant portion of your savings to these funds.
Balanced or Hybrid Funds:

These funds offer a balanced approach and can provide moderate returns with lower risk. They are ideal for your medium-term goal.
Tracking and Reviewing Your Investments
Regularly track and review your investments to ensure they are on track to meet your goal. Here’s how you can do it:

Monthly Reviews:

Monitor your savings and investments every month to ensure you are saving the planned amount.

Make adjustments if necessary to stay on track.

Annual Reviews:

Review your investment portfolio annually to assess its performance.

Rebalance your portfolio if required to align with your goal and risk appetite.

Utilizing Bonuses and Windfalls
If you receive any bonuses, windfalls, or additional income, consider allocating a portion towards your house savings. This will help you reach your goal faster.

Reducing Expenses and Increasing Savings
Expense Management:

Review your monthly expenses to identify areas where you can cut costs.

Redirect the saved amount towards your house down payment savings.

Increasing Income:

Explore opportunities to increase your household income, such as part-time work, freelancing, or additional sources of income.

Allocate the additional income towards your savings goal.

Avoiding High-Risk Investments
Given your goal and timeline, it is advisable to avoid high-risk investments. Focus on investments that provide stable and consistent returns.

Final Insights
By following a disciplined savings plan and investing wisely, you can achieve your goal of saving Rs. 20 lakhs for your house down payment within 5 to 10 years. Regular monitoring and adjustments will help ensure you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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6monsth back I started talking to one of my colleague, he is attractive by his nature. Almost everyone likes him. he is intelligent, funny, etc.... In calls he used to tell me about his family, his friends, his thoughts, also about the girl (Aliya) whom he liked a lot for 6years (they belong to same village), but she rejected and told that he is her friend only. He told her that he may get feelings for her if they both remained as friends, so better stop talking. But she insisted that they both need to be friends and continue talking. I felt like may be she needed emotional support that's why she insisted. After coming to Jaipur, Aliya started talking to another man named Jitesh. But my colleague used to feel like a third wheel and started keeping distance. Then also she told that they are just friends and he need not distant himself. She always wanted him to give her the first priority. He also feared that she might get upset if he don't give her 1st priority. They used to talk a lot on phone and share everything. One day he brought her to our bay where we both used to sit and work. that day I really felt like I was a third wheel. I felt very bad.. cried for few days. And decided not to talk to him from then on because I didn't want to cry anymore. But he kept trying to have a talk with me. One day he almost cried because I was ignoring him. I couldn't see him like that and also I felt guilt about my behaviour(my intention was not to hurt him but to save my tears). I couldn't help but starting talking to him. He used to mention to me whenever he used to talk to her. and everytime I used to feel very bad. We started talking a lot after few weeks. Whenever I didn't receive proper response from him I used to become very anxious waiting for his reply and cried a lot. But when he starts talking again I used to feel normal. I never wanted to get into relationships, so everytime I used to tell him directly or indirectly about it. But still he continued to talk to me. One day he called me and said that Aliya is in love with Jitesh. He said being a friend he is very happy for her but after sometime he also said that if you also love someone I will stop talking with you also. I understand that he is little sad that he cannot talk to Aliya as he used to talk before because she is in love with someone else. We continued to talk and kept talking a lot. One day I felt like I am too much emotionally getting connected to him and felt like these long talks need to stop. So I asked him saying that I didn't get clarity. Then he opened up and proposed me. I thought for a day and I felt he is also a good person and said yes to him. Then on he became my world. Then on he started talking little less with other girls. One day Aliya called him saying that Jitesh had an incident where everyone thought he was drowned but he came back safely. She needed emotional support and asked him to come to office. She also said she that one of her colleagues didn't bring lunch and she don't have enough food to give her so she asked my colleague to prepare some food and bring it to office. At first my colleague said no thinking of me but Aliya convinced him emotionally saying that will you leave friends if you get a girlfriend and so he prepared lunch and took it to office. That day when he told me all these I felt devastated, I felt really insecured and cried a lot that is our first fight regarding her. He told me that if you say no I will stop talking to her. She again called and asked my colleague that what was my reaction for all these... he kept silent she guessed what might have happened and told that I understand how she might have felt and will not ask him to bring food to office anytime. Then on fights started increasing between us regarding her. whenever we three had a conversation i felt like thirdwheel and felt he is showing more attention towards her, more care towards her. again a fight. Like that fights started increasing. At first he used to listen to me, but after some days he started saying like my thinking is wrong. I even told him how much I cried but he didn't bothered. I never wanted to break their friendship so I never wanted to ask him to stop talking(even though he gave me that option). I only wanted him to give me my importance but I still feel he shows equal care to both of us. Then how am I different? Later on in our every fight, he started supporting her this gave me more pain. One day he said If I leave her for you, then I may leave you for someone else, that is not my character( this is contrary to what he said previously 'I will stop talking to her if i don't want to'). I cried a lot, I don't have much friends I couldn't share this with anyone.... every moment he is only coming to my thoughts and whenever fights happen due to Aliya, I get disturbed a lot... unable to concentrate on my work... not getting interest to do anything. One day out of anger I said just stop talking to her then his expressions totally changed he became hesistant , he became very sad and said I need sometime and don't know how much( his expression is contrary to what he said 'It doesn't bother me much If I don't talk to Aliya' ). He is that much emotionally connected to her. After 5mins I pinged him saying that I am feeling very guilt about the decision and ask him not to stop talking to her. I understood finally that he still thinks I am wrong and I am tired of fighting. One day when I was very emotional I told him that I will no more bring Aliya topic in our discussion and asked him to do whatever he wants. After this, Whenever Aliya calls him or he call her he used to tell me... sometimes I felt very bad... sometimes I tried to ignore as if it didn't bothered me but didn't start any argument with him. After few days he even stopped telling me if she called him or not also. When he was not telling about Aliya's conversations I thought he understood my feelings and reduced talking with her. but one time accidently my colleague's friend told about the small conversation that my colleague and Aliya had, that's how I came to know that they had a conversation but he didn't tell me. I felt very bad, really very bad... again unable to concentrate on work feel like crying all the time... I can't ask him to stop talking to her because I don't like to do so and also afraid of having negative impression on me in my colleague's mind. at the same time, I feel very very bad whenever they meet or have a call or does something together. I cannot discuss with him about this anymore. what shall i do, this is bothering me a lot and also having effect on my career, peace and life. please suggest. I am ready to correct myself if there is anything wrong from my end. And I can surely say that If i have a boy bestfriend then he would definitely not feel comfortable and will get upset.
Ans: Dear Jia,

When two people enter a relationship, both must try to make each other feel comfortable. If you are uncomfortable with your partner speaking to his friend, who is also his ex-crush, it is perfectly normal for you to voice it. And reading your question I understood that he has repeatedly mentioned that he had feelings for her, and even wanted to sever ties because staying in touch could only further ignite those feelings. I don't see how you are wrong in letting him know that you don't like their interactions. Plus, in a healthy relationship, the partner comes first. Not friends, especially not this kind of friendship.

Just understand that you are not wrong. Even if his intentions are pure and he looks at her like a friend, you have every right to express your feelings. You made no unreasonable demand. She wasn't "just" a friend; she was always more than that, and being insecure about something like that is not uncommon.

The only thing to do right now is to tell your boyfriend that you understand that the friendship is important but you deserve someone who can pick you over everything- obviously, reasonable things. See what he does. And please remember, you actually deserve someone who would pick you. This is not an ultimatum; it's the truth.

Best Wishes.

...Read more

Ramalingam

Ramalingam Kalirajan  |6287 Answers  |Ask -

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

Asked by Anonymous - Sep 13, 2024Hindi
Money
Sir, I wish to invest in following MF 1. Tata or UTI nifty 50 index fund . G 2. HDFC focused 30 G 3. Mahindra Manulife multicap Or Nippon multicap..G 4. Motilal Oswal mid cap. Each will have 2.5 L investment Amt. Kindly advise Thanks..
Ans: You are considering investing Rs 2.5 lakh in four different mutual funds. This includes a mix of index funds, focused funds, multi-cap funds, and mid-cap funds. I appreciate your thoughtful selection, but it’s essential to evaluate the pros and cons before proceeding.

In this analysis, I will give you a professional yet simple overview of each type of fund. Let's ensure that your choices align with your financial goals.

1. Index Funds: Pros and Cons
You’ve mentioned the Tata or UTI Nifty 50 Index Fund. Index funds, as you know, passively track an index like the Nifty 50. While this may seem like a safe option, there are some points you need to consider:

Advantages:
Low-cost option.

Simple to understand and follow as it mirrors the index.

Decent long-term growth potential.

Disadvantages:
Lack of flexibility: Index funds follow the market. If the index doesn’t perform well, neither will your investment. This limits returns compared to actively managed funds.
No risk management: Index funds cannot switch away from underperforming sectors.
Miss out on opportunities: Actively managed funds can offer superior returns by taking advantage of market opportunities.
Since actively managed funds offer better flexibility and potential for higher returns, I would recommend focusing on actively managed funds instead of index funds.

2. Focused Funds: A Balanced Approach
You’re considering investing in HDFC Focused 30 Fund. Focused funds invest in a limited number of stocks, typically around 20-30. This allows fund managers to focus on high-conviction ideas.

Advantages:
Potential for high returns: With a limited portfolio, focused funds can give significant returns if the chosen stocks perform well.

Concentration of best ideas: Fund managers can pick the top-performing companies.

Disadvantages:
Higher risk: Because the portfolio is concentrated, if a few stocks perform poorly, it can significantly impact returns.

Volatility: These funds can experience higher fluctuations due to limited diversification.

Focused funds are ideal if you’re willing to take moderate risk. They balance high returns with some risk. Since your portfolio includes emergency funds and insurance, this could be a reasonable choice.

3. Multi-Cap Funds: Balanced Exposure to Large, Mid, and Small Caps
You mentioned either the Mahindra Manulife Multicap or Nippon Multicap Fund. Multicap funds offer exposure across large-cap, mid-cap, and small-cap stocks, providing diversification.

Advantages:
Diversification: These funds reduce risk by investing across the spectrum of large, mid, and small-cap stocks.

Flexibility: Fund managers can shift allocations based on market conditions.

Disadvantages:
Risk in small and mid-cap: Although these funds invest in large caps, the exposure to mid and small caps adds an element of risk.

Performance varies: Depending on market conditions, these funds can underperform if small or mid-caps don’t do well.

Multi-cap funds are an excellent choice for a balanced approach. They give you exposure to all segments of the market, allowing you to benefit from growth in different sectors. However, there’s moderate risk involved.

4. Mid-Cap Funds: High Growth, High Risk
Finally, you’ve considered investing in Motilal Oswal Mid Cap Fund. Mid-cap funds focus on mid-sized companies, which are often in the growth stage.

Advantages:
High growth potential: Mid-caps have higher growth potential compared to large caps.

Diversification across industries: Mid-cap companies come from diverse sectors, providing broader market exposure.

Disadvantages:
Higher volatility: Mid-cap stocks are more volatile than large caps. They can offer high returns but may experience significant fluctuations.

Market dependency: Mid-caps tend to underperform during market downturns, which increases risk.

Mid-cap funds are suitable if you are looking for long-term growth and are comfortable with higher risk. Since your portfolio includes a good mix of other funds, this could be a good growth-oriented addition.

Evaluating Your Overall Portfolio
Balanced diversification: Your portfolio contains a combination of mid-cap, multi-cap, and focused funds. This creates a balanced exposure across different market segments.

Risk assessment: The inclusion of mid-cap and focused funds indicates that you’re willing to take moderate to higher risks. However, avoid over-exposure to mid-caps, as they can be volatile in the short term.

Long-term growth potential: Each fund type offers strong long-term potential, especially with the exposure to mid and multi-cap segments. You’re positioned well for growth over the next 10-15 years.

Recommendations for Improvement
Here are a few suggestions to optimise your portfolio further:

Avoid over-reliance on index funds: As mentioned earlier, actively managed funds may offer better returns. You may want to replace the index fund with a large-cap fund managed by an experienced fund manager.

Review portfolio regularly: It’s essential to review and rebalance your portfolio regularly. This ensures your investments remain aligned with your goals and market conditions.

Consider goal-specific investments: While your portfolio appears diversified, it’s essential to allocate funds specifically for long-term goals like retirement or your child’s education. Make sure your investments match your risk tolerance and time horizon.

Tax Efficiency and Growth
Another critical factor is the tax efficiency of your investments. Mutual funds, especially equity-oriented ones, are tax-efficient compared to fixed deposits and other bank-based savings instruments. The long-term capital gains on equity mutual funds are taxed at 12.5% beyond Rs 1.25 lakh of gains, making them a better option for long-term wealth creation.

By investing Rs 2.5 lakh in each fund, you’re making a decent start. However, don’t forget to review tax implications annually to minimise liabilities and maximise growth.

Final Insights
In summary, your portfolio looks strong with a mix of equity funds targeting growth. However, I suggest replacing the index fund with an actively managed large-cap fund to optimise returns. Continue monitoring your investments regularly and ensure your asset allocation is aligned with your financial goals. With proper planning and regular reviews, your portfolio can help you achieve long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Sushil

Sushil Sukhwani  |549 Answers  |Ask -

Study Abroad Expert - Answered on Sep 13, 2024

Asked by Anonymous - May 23, 2024Hindi
Listen
Career
Hi sir, i have completed BE civil engineering and having 14years of work experience in underground metro constructions. Recently my wife got H1B for North Carolina. If i have to move with her what are the possibilities for work or studies. Is there any one MS course offered by NCSU for construction management? May i know the procedures to follow.
Ans: Hi,

To begin with, thank you for reaching out to us. I’m glad to hear that you and your wife are planning to move to North Carolina and that you intend to study and work there. To answer your question, given your extensive experience in underground metro constructions, you have several opportunities if you move to the USA. You could explore roles in civil engineering firms or construction companies that specialize in infrastructure projects, as your background aligns well with large-scale construction and engineering roles. You should also consider connecting with local engineering societies or professional networks to find job openings or consulting opportunities.

Regarding your interest in pursuing further studies, North Carolina State University (NCSU) offers courses in Construction Project Management, Construction Safety Management, Risk and Financial Management, Materials Management in Construction among others. I would recommend you to connect with an expert to get a better understanding of the various courses that are available in the USA and to know about the procedures to apply for the same.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

...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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