Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 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 - May 09, 2024Hindi
Listen
Money

I have about 40 lakhs in equity MF, 40 lakhs in pf. Currently making 1 lakh SIP per month. In hand salary is 3.25 lakh/month. I plan to purchase a house worth 1.5 Cr. I'll soon get a lump sum amount of 60 lakhs. Should I use that to pay larger upfront for the house or invest it to pay future payment from returns? I am 37 yrs old male. Monthly expense is about 1 lakh inclusive of rent.

Ans: Here's a breakdown of your situation to help you decide whether to use the lump sum for a larger down payment or invest for future EMIs:

Factors to Consider:

Down Payment Impact: A larger down payment reduces your loan amount, leading to lower interest payments overall. This can save you a significant amount of money in the long run.

Investment Potential: Investing the lump sum could potentially generate returns that help cover future EMIs. However, market performance is not guaranteed.

Emergency Fund: Ensure you have a sufficient emergency fund after using the lump sum (ideally 3-6 months of living expenses).

Risk Tolerance: Investing the lump sum involves market risks. Consider your comfort level with potential fluctuations.

Here are two approaches to consider:

Option 1: Larger Down Payment:

Use a significant portion of the lump sum (say 40-50 lakhs) for a larger down payment. This can bring down your loan amount substantially, reducing your overall interest burden.
Invest the remaining amount (20-30 lakhs) to potentially generate additional income or create a buffer for future expenses.
Option 2: Invest and Pay EMIs:

Invest the entire lump sum (60 lakhs) in a diversified portfolio to potentially generate returns that can cover future EMIs.
This frees up your monthly income for other expenses or investments. However, market performance can impact returns.
Here are some additional thoughts:

Interest Rates: Compare current home loan interest rates with the potential returns you might expect from your investments.
Debt Management: Consider your overall debt situation. A larger down payment can improve your debt-to-income ratio, potentially making you eligible for better loan terms.
Professional Advice: Consulting a financial advisor can help you create a personalized plan considering your risk tolerance, financial goals, and investment horizon.
Here's a quick summary of your financial situation:

Strong Savings: With Rs. 40 lakh in MFs, Rs. 40 lakh in PF, and a Rs. 1 lakh monthly SIP, you have a solid savings foundation.
High Income: Your in-hand salary of Rs. 3.25 lakh per month provides significant financial flexibility.
House Purchase: Aiming for a Rs. 1.5 crore house indicates a long-term investment plan.

Ultimately, the decision should align with your risk tolerance, financial goals, and overall financial plan. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific circumstances, helping you make informed decisions to achieve your objectives.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Listen
Money
I have 15 lac lumpsum to invest , where should I invest it? Option 1 : I can buy a plot of 45-50 lac where I can made down payment of 15 lac and loan ( for 10 years) for rest amount. Expected ROI is 10-12% max. Option 2: I have a capacity to take risk (middle level) and can invest in equity / mutual fund and start sip of equivalent emi amount.—— I have a small house to live but this investment is to get big home for children. I will need this big home after 7-8 years. Please suggest if I can opt for option 1 or 2. Which option will be beneficial - buy plot now on loan or buying after 8 years ? Considering: this plot can be used for own house or can sell in future to buy house in better locations in future.
Ans: Investing ?15 Lakhs: Plot Purchase vs. Equity/Mutual Funds
Making a decision about investing a significant amount like ?15 lakhs requires careful consideration of your financial goals, risk tolerance, and timeline. Let’s evaluate both options to determine which one aligns best with your objectives.

Option 1: Purchase a Plot with Loan
Advantages
Potential for Appreciation: Real estate historically appreciates over time, offering the potential for capital appreciation.
Ownership Benefits: Owning a plot provides a sense of ownership and control over the asset, allowing you to use it for personal residence or future sale.
Disadvantages
Illiquidity: Real estate investments are relatively illiquid compared to financial assets like stocks and mutual funds. Selling a plot may take time and effort.
Cost of Borrowing: Taking a loan for the plot incurs interest costs, reducing overall returns. Ensure the expected ROI exceeds the cost of borrowing.
Option 2: Invest in Equity/Mutual Funds
Advantages
Liquidity: Equity and mutual fund investments offer high liquidity, allowing you to access funds quickly if needed.
Diversification: Investing in a diversified portfolio of stocks and mutual funds spreads risk and potentially enhances returns.
Tax Efficiency: Long-term capital gains from equity investments are taxed at a lower rate compared to interest income from a plot loan.
Disadvantages
Market Volatility: Equity markets are subject to fluctuations, and your investment may experience short-term losses.
Risk of Underperformance: While equities offer the potential for high returns, there is no guarantee of positive returns, and your investment may underperform expectations.
Considerations for Your Big Home Plan
Timeline: 7-8 Years
Evaluate your timeline for needing a bigger home for your children. If the requirement is within 7-8 years, consider the investment horizon and expected returns of each option.
Growth Potential
Assess the growth potential of both options over the specified timeline. Real estate investments typically appreciate over the long term, while equity markets offer potential for higher returns with proper diversification.
Risk Tolerance
Consider your risk tolerance level. If you can withstand short-term market volatility and are comfortable with the risk associated with equity investments, Option 2 may be suitable.
Financial Flexibility
Evaluate your financial flexibility and ability to manage loan repayments. Assess whether taking a loan for the plot aligns with your financial goals and cash flow situation.
Conclusion: Making an Informed Decision
Given your desire to provide a bigger home for your children in 7-8 years, it’s essential to weigh the pros and cons of both options carefully.

Option 1 (Plot Purchase): Offers potential appreciation and ownership benefits but entails illiquidity and borrowing costs.
Option 2 (Equity/Mutual Funds): Provides liquidity, diversification, and tax efficiency but carries market volatility risk.
Recommendation
Considering your timeline, financial goals, and risk tolerance, investing in equity/mutual funds through SIPs may be more suitable. This option offers liquidity, diversification, and the potential for higher returns over the specified timeframe.

Before making a decision, consult with a Certified Financial Planner to assess your individual circumstances and develop a tailored investment strategy that aligns with your long-term objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 04, 2024Hindi
Listen
Money
Hi I have around 30 lakhs in MF, 5 lakhs in equity , 4.5 lakhs in PPF AND around 1.5 lakhs in PF. I am 28 as of now how should i plan my investment i can invest 50-60 k per month. I have my parental home so i do not have an immediate goal of buying a home.
Ans: Assessing Your Current Financial Position
You have already made significant progress in your investments. Your portfolio includes mutual funds, equity, PPF, and PF.

Mutual Funds: Rs. 30 lakhs

Equity: Rs. 5 lakhs

PPF: Rs. 4.5 lakhs

PF: Rs. 1.5 lakhs

You are 28 years old, which is a great age to build a strong financial foundation.

Monthly Investment Capacity
You can invest Rs. 50,000 to Rs. 60,000 per month. This is a substantial amount for wealth creation.

Goals and Time Horizon
Define your financial goals and their time horizons. Common goals might include:

Emergency Fund: Immediate

Retirement: Long-term

Higher Education for Children: Medium to long-term

Travel or Lifestyle Upgrades: Medium-term

Emergency Fund
Maintain an emergency fund to cover 6 to 12 months of expenses. This should be easily accessible.

Retirement Planning
Start planning for retirement early. Invest in a mix of equity and debt for a balanced approach.

Investment Strategy
Your investment strategy should balance growth and safety.

Equity Investments
Mutual Funds: Continue investing in mutual funds. They offer diversification and professional management.

Direct Equity: Direct equity investments can provide high returns but come with higher risk.

Disadvantages of Direct Funds
Time-Consuming: Managing direct funds requires constant research.

Lack of Professional Guidance: You may miss out on expert advice.

Benefits of Regular Funds
Professional Management: Regular funds are managed by experts.

Convenience: Saves time and provides professional insights.

Debt Investments
PPF: Continue investing in PPF for tax-free returns and safety.

Debt Mutual Funds: These provide stable returns and are more tax-efficient.

Balanced Portfolio
A balanced portfolio reduces risk and maximizes returns.

Suggested Allocation:

Equity: 60% to 70%

Debt: 30% to 40%

Systematic Investment Plan (SIP)
Invest through SIPs for rupee cost averaging and disciplined investing.

Tax Planning
Consider tax-efficient investments to minimize your tax burden.

Reviewing and Rebalancing
Review your portfolio regularly and rebalance it to align with your goals.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP) for personalized planning.

Conclusion
Your financial journey is off to a great start. Continue investing wisely and review your plans regularly.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 2025

Money
Hi Sir, I'm a 36 yrs aged software employee working in Hyderabad with monthly in hand salary of 120k and withs 2 kids my son(his age is around 4 yrs) and my daughter (her age is around 2yrs). I have the following investments as of today. 1) PPF -8.5 Lakhs (12500/- monthly contribution) 2) Sukanya(SSY)- 4.8 Lakhs (12500/- monthly contribution) 3) NPS - 1.5 lakhs (8560/- monthly contribution) 4) EPFO - 6.5 Lakhs 5) NPS Vastalya (My son) - 13k (1k monthly contribution) 6) Post office RPLI (My wife) - 1.3 lakhs (22000/- yearly contribution) after the above all deductions, I can save 50k per month. My long term goal is buying a flat/house along with my retirement plan in next 10 yrs and need take care of my children education & marriage. I don't have any accumulated amount for down payment for buying a flat/house. What would be best approach to purchase a flat/house in Hyderabad ? should I take a home loan and buy a flat immediately in next 1/2 yrs (or) Should I invest an SIP of 50K per month for 5/10 yrs then buy ?
Ans: Thank you for sharing detailed information. You already have a disciplined approach to savings. You are clearly focused on long-term goals. Let's now look at the best approach to meet those goals.

 
 
 

Income and Savings Review
Your monthly in-hand salary is Rs.1.2 lakh. That gives a good base.

 
 
 

After all deductions, you can save Rs.50,000 monthly. That is a strong habit.

 
 
 

With two kids, financial responsibilities are high. You are still managing savings. Appreciate it.

 
 
 

Let’s now assess each of your investments.

 
 
 

Review of Existing Investments
PPF of Rs.8.5 lakh with Rs.12,500 monthly. Good for long-term. Safe and tax-free.

 
 
 

Sukanya for your daughter with Rs.4.8 lakh is well-planned. Continue it till she turns 14.

 
 
 

NPS of Rs.1.5 lakh with Rs.8,560 monthly. It builds retirement corpus. Continue it.

 
 
 

EPFO of Rs.6.5 lakh is part of your salary benefits. That’s a stable addition to retirement.

 
 
 

NPS for your son is a new initiative. It’s too early to predict its usefulness.

 
 
 

Post office RPLI in wife’s name with Rs.1.3 lakh. Yearly Rs.22,000 is manageable.

 
 
 

Overall, you have built a strong base with safe and regular investments. But these are mostly conservative. They may not beat inflation by a good margin.

 
 
 

Let’s now look at your primary goals.

 
 
 

Goal 1: Buying a Flat in Hyderabad
This is a big financial goal. Needs careful planning and timing.

 
 
 

You have zero savings for down payment now. That limits immediate action.

 
 
 

Buying now through a loan will put pressure on your cash flow.

 
 
 

If you go for loan now, EMI may be Rs.30,000–Rs.35,000 monthly.

 
 
 

That leaves you with very little for future goals and emergencies.

 
 
 

It is better to avoid rushing to buy flat now.

 
 
 

You can start a savings plan for down payment. Build at least Rs.6–8 lakh in 3–4 years.

 
 
 

Then you can take loan for balance amount. EMI will be safer then.

 
 
 

This way, your financial stress remains low.

 
 
 

Should You Wait or Buy Now?
Let’s compare both approaches carefully.

 
 
 

Buy Flat Immediately:

EMI pressure starts immediately. About Rs.30,000–Rs.35,000 per month.

 
 
 

You won’t be able to invest Rs.50,000 monthly anymore.

 
 
 

No funds left for kids’ future or your retirement.

 
 
 

You will be forced to stop current PPF or NPS contributions.

 
 
 

Not a safe approach. Will affect your other goals badly.

 
 
 

Wait and Invest for 5 Years:

Invest Rs.50,000 every month for 5 years.

 
 
 

You can build a down payment corpus of Rs.6–8 lakh easily.

 
 
 

Invest this amount in regular mutual funds with CFP guidance.

 
 
 

You can plan your home buying calmly. With less loan burden.

 
 
 

Your EMI will start only after 5 years. By then income also will grow.

 
 
 

Verdict: Wait and invest. Buy later. More secure path.

 
 
 

About Mutual Funds for SIP
SIP is best way to grow money in a planned way.

 
 
 

You should go for actively managed mutual funds.

 
 
 

Avoid index funds. They just follow index. No protection in falling market.

 
 
 

Actively managed funds try to give higher return than index.

 
 
 

They select good companies using deep research.

 
 
 

Use regular mutual funds through MFD with CFP support.

 
 
 

Avoid direct mutual funds. No help, no monitoring, no personal advice.

 
 
 

Regular funds provide tracking, rebalancing and expert guidance.

 
 
 

For you, regular plans through CFP will reduce risk and improve returns.

 
 
 

Start SIP of Rs.50,000 monthly in 3 to 4 funds.

 
 
 

Mix of large, mid and flexi-cap funds can work well.

 
 
 

Over 5 years, this SIP will help in flat down payment.

 
 
 

After that, you can reduce SIP and start EMI for flat.

 
 
 

Also continue SIP with lower amount for retirement and kids’ goals.

 
 
 

Retirement Planning
You are 36 now. Planning retirement early is smart.

 
 
 

NPS and EPFO are your current retirement tools.

 
 
 

They are safe but not flexible. Returns also moderate.

 
 
 

Mutual funds SIP gives better flexibility and return potential.

 
 
 

You can assign one fund’s SIP fully to your retirement goal.

 
 
 

You need bigger retirement fund. So SIP is needed even after NPS and EPFO.

 
 
 

Don’t rely only on NPS. Add mutual fund SIP to build a proper retirement fund.

 
 
 

Children’s Education and Marriage Planning
Your son is 4. Your daughter is 2. You have 13–16 years for education planning.

 
 
 

Sukanya is good for daughter. But more is needed.

 
 
 

For both kids, education cost will be high.

 
 
 

Start separate SIP for each child’s education.

 
 
 

You can start with Rs.10,000 each per month. Adjust based on your income.

 
 
 

Use separate mutual funds for these goals.

 
 
 

Later, assign some part of PPF maturity also for child marriage.

 
 
 

Avoid child insurance plans. Low return, high cost, and lock-in.

 
 
 

SIP in regular funds gives better flexibility and growth.

 
 
 

Emergency Fund
Emergency fund is must for every family.

 
 
 

Keep at least 6 months’ salary as emergency money.

 
 
 

That is Rs.7.2 lakh in your case.

 
 
 

Use bank savings or liquid mutual funds for this.

 
 
 

Emergency fund is not for investing. Don’t mix it with SIP.

 
 
 

Build this fund slowly over 6–8 months.

 
 
 

Insurance Review
You have RPLI for wife. That is a savings product.

 
 
 

You need pure term insurance. Sum assured of Rs.1 crore is needed.

 
 
 

Premium is low. Life protection is high.

 
 
 

No need for ULIPs or investment-cum-insurance plans.

 
 
 

Also check for proper health insurance for family.

 
 
 

Don’t depend only on office health plan.

 
 
 

Tax Efficiency
Your current investments give good tax benefits.

 
 
 

PPF, Sukanya, NPS all have tax benefits.

 
 
 

EPFO also gives tax-free interest.

 
 
 

Mutual funds have long-term tax advantages too.

 
 
 

LTCG above Rs.1.25 lakh is taxed at 12.5%.

 
 
 

STCG taxed at 20%. Still better than FD or RD taxation.

 
 
 

Mutual funds help in better tax planning in long term.

 
 
 

What You Can Do Now – Step-by-Step
Start SIP of Rs.50,000 monthly in 3–4 mutual funds.

 
 
 

Take help from CFP for selecting right funds.

 
 
 

Review current RPLI. Keep only if not affecting liquidity.

 
 
 

Buy term life cover of Rs.1 crore immediately.

 
 
 

Start emergency fund. Target Rs.7.2 lakh over 1 year.

 
 
 

Start planning for home buying after 4–5 years.

 
 
 

Rebalance your investments every year with your CFP.

 
 
 

Track progress of each goal separately.

 
 
 

Don’t take any loan now. Wait until you are ready.

 
 
 

Finally
You have done a good job with disciplined savings.

 
 
 

But now, you need to shift from saving to smart investing.

 
 
 

Mutual funds with CFP guidance will take your goals forward.

 
 
 

Avoid direct funds and index funds. Use active regular funds.

 
 
 

Delay home buying. Build your down payment through SIP first.

 
 
 

Continue PPF, NPS and Sukanya. But add mutual fund SIP for higher growth.

 
 
 

Keep insurance pure and simple. No ULIPs or endowment plans.

 
 
 

Follow this roadmap. All your goals can be met peacefully.

 
 
 

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |7759 Answers  |Ask -

Career Counsellor - Answered on Jul 03, 2025

Career
Sir what should i prefer JNTUH CSE or IIT HYD civil
Ans: JNTUH CSE offers a well-established curriculum, NAAC accreditation, and a strong placement record, with 88% of B.Tech graduates placed in 2023 and top recruiters like Microsoft, Amazon, TCS, and Infosys. The CSE branch consistently achieves the highest placement rates and salary packages at JNTUH, with a median package of ?6.25 LPA and the highest reaching ?44 LPA. However, core branches such as Civil at JNTUH see fewer opportunities and lower salaries. IIT Hyderabad Civil Engineering, ranked #8 in NIRF 2024, provides a research-driven environment, advanced labs, and a national reputation, but Civil Engineering at IITs generally records lower placement rates (43–60% at IITH) and average salaries compared to CSE, with a median package of ?11.1–21 LPA, which is about 30% lower than the overall IIT average for all branches. IIT Hyderabad’s Civil Engineering department is recognized for its research, industry collaborations, and alumni network, but the branch faces the same sector-wide challenges of lower placement rates and fewer high-paying roles relative to CSE.

Recommendation:
If your primary focus is on placement rates, salary potential, and career flexibility in the tech sector, JNTUH CSE is the stronger choice. Choose IIT Hyderabad Civil only if your interest lies in research, infrastructure, or core engineering, as placements and pay in Civil lag behind CSE at both institutions. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |7759 Answers  |Ask -

Career Counsellor - Answered on Jul 03, 2025

Asked by Anonymous - Jul 02, 2025Hindi
Career
To get admission in Tier1 IIT in CSE for SC FEMALE candidate what rank should be achieved
Ans: At top older IITs, SC female aspirants must secure category?specific JEE Advanced ranks well within the following closing ranges to gain admission in 2024. For Computer Science and Engineering, closing SC ranks are approximately 107 at IIT Bombay, 72 at IIT Madras, 906 at IIT Delhi, 96 at IIT Kanpur, 137 at IIT Kharagpur, 144 at IIT Roorkee, and 181 at IIT Guwahati. In Electronics/Electrical Engineering, SC closing ranks fall near 642 at IIT Bombay, 378 at IIT Madras, and 178 at IIT Delhi. Mechanical Engineering SC cutoffs close around 1,289 at IIT Bombay and 792 at IIT Madras. At IIT Madras, Civil Engineering closes at 1,324 for SC, while Chemical Engineering closes near 1,237. These figures reflect the last?round JoSAA 2024 allotments for female-only or inclusive supernumerary SC seats, indicating that SC women targeting CSE should aim for category ranks below ~100 for IIT Bombay and Madras, below ~150 for Kanpur/Kharagpur/Roorkee, and under ~200 for Guwahati, with broader thresholds at Delhi.

Recommendation: SC female candidates should target JEE Advanced SC ranks under ~100 to secure CSE at IIT Bombay or Madras, under ~150 for Kanpur/Kharagpur/Roorkee, and under ~200 for Guwahati. For ECE/EE, aim under ~400; for Mechanical, under ~800; for Civil/Chemical at Madras, under ~1,350 to ensure admission. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Money
Sir, I would like to invest 50% of my retirement benefits in my wife name as First Applicant and 50% balance in my name as First applicant. We both are filing returns annually and am not looking for tax benefit. My wife is a housewife and want to make her financially strong so that 50% investment will be in her name as Primary Applicant in the 50% investment in my name she will become secondary applicant. I know we will fall under the tax slab applicable ( if applicable ) and may have to have to file Tax Return. Even Currently we file our tax returns every year. Please can you advise on this idea from a financial independence point of view for senior citizens. This in my view will be a more secure way than the wife remaining as a secondary applicant always. Please advice.
Ans: Your Intention Is Noble and Well Thought-Out

You wish to make your wife financially strong.

You want her to be financially independent.

You want to share your retirement benefits equally.

This thinking shows your foresight and love for your family.

Financial independence for both spouses is a wise goal.

Let us evaluate this idea step-by-step.

Your Plan – 50% in Wife’s Name, 50% in Your Name

You want to invest half of retirement funds in her name.

She will be primary applicant in that 50%.

In your 50%, you want her as secondary applicant.

This gives her legal ownership over her 50%.

She becomes a co-holder in your part.

You both file tax returns annually.

You are not seeking tax benefits from this.

Ownership, Control, and Access – Financial Perspective

As first holder, your wife controls her 50% investment.

She can operate the account and access funds.

She gains confidence and independent financial identity.

In your half, her name as second holder provides backup access.

This ensures smoother management in emergencies.

From a financial independence perspective:

She owns 50% legally and practically.

She will get capital gain and income in her own name.

She can manage her finances without full dependency.

This makes your family more secure and confident.

Taxation and Reporting – No Issues for You Both

Even though she is a homemaker, she files returns.

Interest or gains in her investments will be taxable.

You are not avoiding tax, only ensuring fair structure.

Income clubbing will not apply if money is gifted clearly.

Clubbing applies only when gift is made and income is enjoyed.

But in retirement, income is usually from interest or SWP.

Document gift clearly as transfer to spouse without tax benefit.

Maintain separate bank accounts for tracking.

You both can file individual ITRs with declared income.

Senior citizens have higher exemption limits.

Separate filings reduce tax impact naturally.

You are not violating any rule or hiding income.

You are promoting financial equality and clarity.

Risk Reduction and Emergency Access

If wife is only secondary holder, access may be delayed.

First holder’s death or disability may complicate process.

Keeping her as first applicant in her part avoids that.

She can handle her funds smoothly without legal hurdles.

Second holder status in your name also helps you.

You both have legal, tax, and access rights over your share.

Recommended Investment Instruments for Senior Couples

Choose simple, low-risk options for retirement funds.

Split investments into these types:

Debt mutual funds (SWP route for monthly needs)

Senior Citizen Savings Scheme (SCSS) in both names

Monthly Income Schemes (Post Office or MFs)

Hybrid Mutual Funds with lower equity exposure

Liquid or short-duration funds for emergencies

FDs (laddered maturity, both names for easy access)

Avoid market-linked ULIPs or high-risk instruments.

Mutual funds in her name build her financial habit.

Online access, portfolio statements, and dashboards create awareness.

Use Regular Mutual Funds, Not Direct Plans

Don’t invest in direct mutual funds without guidance.

Direct plans lack professional monitoring and review.

At senior age, mistakes can be expensive and stressful.

Use regular mutual funds through Certified Financial Planner.

You get annual review, goal alignment, asset rebalancing.

Your wife will benefit more with proper handholding.

Avoid Index Funds and ETFs

Index funds only track the market.

No active management or downside protection.

Senior citizens need stability, not just low costs.

Actively managed funds offer better control and returns.

Use diversified or conservative hybrid funds.

Nomination, Will, and Documentation – Essential Steps

After investing, update nomination for every investment.

Keep your children or trusted person as nominee.

If you have other legal heirs, write a Will.

Mention investment ownership and wishes clearly.

Keep records of gifting to spouse documented.

Maintain a central file with account statements.

Share access and passwords in a secure way.

Emergency Funds and Health Protection

Keep at least 6 months of expenses as liquid funds.

Split across both of you.

Maintain health insurance with proper sum insured.

Don’t depend only on pension.

Investments should support monthly income smoothly.

Suggested Portfolio Allocation Approach

You can consider dividing retirement corpus as below:

30% in debt mutual funds (for 3 to 5 years needs)

25% in hybrid mutual funds (for long-term growth)

20% in SCSS, with both names in separate accounts

10% in liquid funds for emergency

10% in conservative equity mutual funds (optional)

5% in FD or monthly income scheme

This is flexible based on your comfort level.

Make sure both of you invest separately in your own names.

Why This Plan Makes Financial Sense for Senior Couples

Promotes financial equality and dignity

Avoids future legal complications

Simplifies access to funds during medical events

Gives both partners confidence and clarity

Allows independent financial growth

Creates dual reporting for tax and compliance

Easier succession planning and peace of mind

Improves financial literacy of non-earning spouse

What You Must Avoid

Avoid keeping wife always as second holder only

Avoid mixing your incomes in one account

Don’t invest large sums in only one name

Don’t depend on children for financial access later

Don’t lock all money in long-term instruments

Finally

Your idea is financially and emotionally correct.

50% ownership each gives strength and balance.

Ensure documentation and clarity in all transactions.

Continue filing tax returns jointly and truthfully.

Choose low-risk, income-generating mutual fund options.

Use a Certified Financial Planner to set up everything.

Review every year with spouse for understanding.

Build not just wealth, but independence and peace of mind.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Money
I am 54. Was in employment with pvt company for 22 years before losing job last year. Can I try to get the EPS pension? (I was employed for 6 years in other companies before that as well, but not sure how to check EPS contribution for those).
Ans: Yes, you can get EPS pension if you meet some key conditions. Let’s break this down clearly and practically for you.

What is EPS?
EPS stands for Employees’ Pension Scheme

It's part of EPF (Employee Provident Fund)

Your employer contributed 8.33% of your basic to EPS (within limits)

The pension starts at age 58, but you can opt from age 50 with reduced rate

Do You Qualify?
You said:

You worked 22 years in one company

You worked 6 years in earlier companies

Total is 28 years of service, which is good

To get EPS pension, you must:

Have minimum 10 years of total service

Have no PF withdrawal from pension corpus

Reach age 50 or above

So yes, you can apply now for early pension.

But it will be a reduced pension since you are applying before age 58.

You can also wait till 58 to get full pension.

How to Check EPS Contributions from All Employers
Since you mentioned you’re not sure about earlier EPS amounts, here’s what to do:

Check Your UAN Account (EPFO portal)

Login at https://unifiedportal-mem.epfindia.gov.in

Go to 'View' → 'Service History'

It shows all companies linked to your UAN

If UAN not linked to earlier jobs, read below

For Very Old Jobs (Before UAN)

Write to earlier employers or HR if you can

Ask them to share PF account number or Member ID

You can merge old PF accounts using “One Member One EPF” on EPFO

Use the ‘Pension Contribution Details’ Option

Inside EPFO portal → Check passbook

Select each employer to see EPS part

Only Rs. 1250/month (max) would have gone to EPS

But important is number of years, not amount

Visit Local EPFO Office

Carry your Aadhaar, PAN, UAN, employment history

They can trace EPS records using your old PF numbers

They’ll help merge accounts if needed

How Much Pension Will You Get?
Pension under EPS is not based on full PF balance. It is based on:

Your pensionable salary (max Rs. 15,000/month if not opted for higher pension)

Your number of years of service

More years = more pension.
But remember, if you apply before age 58, you get reduced pension (around 4% less per year).
So at age 54, if you apply now, you may get around 16%–20% less pension than if you wait till 58.

What Should You Do Now?
First, gather all old PF account details

Login to UAN and check if all employers are listed

If not, use One Member One EPF to link them

Then check total service years and EPS contributions

Once confirmed, apply for pension using Form 10D via EPFO

Should You Apply Now or Wait Till 58?
Pros of applying now (at 54):

You get pension income immediately

Useful if no steady income now

No need to wait 4 more years

Cons of applying now:

Pension is permanently reduced

Once fixed, it can’t be changed later

If you have other savings or income, and you don’t urgently need the money, better to wait till 58 for full pension.

Other Tips for You at This Stage
Try to get health insurance if employer policy stopped

Avoid withdrawing PF fully unless needed urgently

Invest PF amount wisely (not in risky small-cap or crypto)

Consider a mix of debt and equity mutual funds

Go via Certified Financial Planner and use regular plans

Avoid direct mutual funds and index funds

They don’t offer guidance or personalisation

MFDs backed by CFPs give goal-focused handholding

If You Already Withdrew PF Earlier?
Check if you withdrew only PF corpus or also pension portion.
If EPS amount is still untouched, you’re eligible.
If EPS was withdrawn, then pension is not available.
So it depends on how the withdrawal was processed.

What You Should NOT Do Now
Don’t panic and apply in hurry

Don’t take investment advice from YouTube or WhatsApp

Don’t believe agents offering shortcuts for pension

Don’t invest PF money in risky schemes

Don’t ignore pension – it’s a lifetime monthly support

Finally
Yes, you’re eligible for EPS pension.
But you must track and verify your complete service history.
Don’t miss any old jobs – even 1 year counts.
Use the EPFO portal, UAN, and local office for clarity.
Decide wisely – early pension means lesser pension for life.
If you can wait till 58, it’s better.
Also, make sure you start goal-based investments now.
Pension will help cover basics, but retirement planning needs more.
Take help from a Certified Financial Planner to plan your retirement corpus from PF and other savings.

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

...Read more

Nayagam P

Nayagam P P  |7759 Answers  |Ask -

Career Counsellor - Answered on Jul 03, 2025

Asked by Anonymous - Jul 02, 2025Hindi
Career
Sir,my son got admission AI&DS IN THAPAR UNIVERSITY ans CSE in BPIT DELHI ans IT IN MSIT DELHI. which is best for my son for his future
Ans: Thapar University's B.Tech in Artificial Intelligence and Data Science stands out as the premier choice among the three options. Ranked #29 in NIRF Engineering 2024, Thapar features NAAC A+ accreditation, state-of-the-art infrastructure including 227 Petaflops of AI performance through NVIDIA collaboration, and PhD-qualified faculty specializing in AI/ML domains. The AI&DS program benefits from dedicated advanced labs, research centers, and industry partnerships, achieving 83% UG placements with an average package of ?11.90 LPA and highest packages reaching ?55.75 LPA. BPIT Delhi CSE, while NBA-accredited with all B.Tech programs recognized for quality, ranks #251-300 in NIRF Engineering and achieved 75-85% CSE placements with an average of ?9.02 LPA and highest packages of ?50 LPA. MSIT Delhi IT holds NAAC A accreditation, ranks #201-300 in NIRF Engineering, and records 80-90% IT placements with the highest package of ?50 LPA and median around ?4-5 LPA. All three institutions feature experienced faculty, modern computing labs, and active industry partnerships, but vary significantly in ranking, infrastructure sophistication, and placement outcomes.

Recommendation:
Choose Thapar University AI&DS for its superior NIRF ranking, cutting-edge AI infrastructure, industry-aligned curriculum, highest placement packages, and strong research environment. The specialized AI&DS program positions students advantageously in emerging technology sectors, making it the optimal investment for your son's future career prospects. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Ramalingam

Ramalingam Kalirajan  |9325 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Money
I'm a 21-year-old engineering student with a 15,000 monthly stipend. I earn 8,000 additional from freelance editing work. I've opened a Zerodha account and started learning about SIPs and stock investing. My goal is to build a small corpus by the time I graduate next year. Is it better to stick to index funds or should I try my luck with trending small-cap stocks for faster growth? Crisp, real answers please. Thank you.
Ans: You’ve already taken good steps. Starting at 21 shows discipline. Many students your age don’t think beyond spending. You’re earning, saving and exploring investments. That’s a sharp mindset. Keep that up.

Now let’s look at your question with clarity. You want to grow your money fast. You mentioned index funds. You also mentioned small-cap stocks. You want to build a small corpus before graduation. That gives you around 1 year. Your stipend is Rs. 15,000. Freelancing gives you Rs. 8,000. That’s Rs. 23,000 monthly cash flow.

Let’s evaluate the right approach from all sides.

Understanding Where You Stand Today

You are 21, unmarried and have low expenses

You already have Rs. 23,000 monthly income

You’ve opened a Zerodha account

You are curious about SIPs and stocks

You want fast growth in a short time

This is a very early stage. Don’t rush. Get your basics right.

Why Small-Cap Stocks May Mislead You

You’re thinking of small-cap stocks. Let’s be careful.

Small-caps look exciting during bull markets

Returns can go 50-100% in short bursts

But drops are equally fast and deep

These stocks fall hard in a market crash

You won’t get time to exit

There is very low liquidity in most small-cap counters

Price discovery is poor. Rumours move prices

These stocks are operator-driven sometimes

As a student, you won’t have access to deep research

You’ll follow noise from Twitter or YouTube

This creates false confidence

One wrong stock can wipe your Rs. 50,000 saved capital

You’ll get discouraged and quit investing early

Best avoided in this early stage

You can explore small-cap mutual funds. But not direct small-cap stocks.

Why Index Funds Are Not the Best Choice

You mentioned index funds. Let’s clear the myth here.

Index funds copy a benchmark like Nifty or Sensex

There is no fund manager involvement

They do not beat the market

They just mirror it

No protection in falling markets

No rebalancing during correction

No exit from weak sectors

Even weak companies stay in the index

Your money will go into those too

Index funds look cheap in cost

But they also give average results

They are not goal-focused

You are just riding the wave

You need active guidance at this stage. Index funds can’t give that.

Why Actively Managed Mutual Funds Make More Sense

Actively managed funds have many strengths.

Fund manager studies markets deeply

Risk is controlled using diversification

Portfolio gets reviewed and rebalanced

Money shifts between sectors and themes

Entry and exit are managed

Weak stocks get removed

Strong ones are added timely

Your money stays protected in volatile times

Funds have internal risk-control systems

These funds beat inflation over time

Returns are much better than index funds in long term

Perfect for goal-based investing like your 1-year corpus goal

Even if market falls, you’ll get better downside management.

Why Direct Plans Are Not Meant for You

Some students try direct plans. Let’s explain the risks.

Direct plans have no support

You’re on your own

If market falls 20%, you won’t know what to do

You may exit in panic

Or stay stuck in poor funds

There’s no one to rebalance or switch you

No real accountability

You’ll follow random YouTube advice

And land in poor-performing funds

Investing through a CFP-backed Mutual Fund Distributor helps

They guide you based on your goals

They track your SIPs regularly

They help with fund switching

They also build discipline

You stay long term and build wealth

You also avoid tax mistakes

The slightly higher cost of regular plans brings much more value.

How You Should Structure Your Rs. 23,000

Let’s build a basic monthly plan:

Rs. 10,000 – SIP in actively managed mutual funds

Rs. 3,000 – Liquid fund for emergency

Rs. 2,000 – Cash or UPI wallet for monthly fun

Rs. 3,000 – Upskilling courses or career certifications

Rs. 5,000 – Fixed deposit for short-term goals

This way, you are growing wealth + safety + skill at same time.

Don’t Fall into the Fast-Money Trap

Let’s stay honest here.

Many students want fast growth

They chase penny stocks or crypto tips

They show screenshots on Instagram

Most of it is curated to impress

No one posts losses

90% of them exit the market within 2 years

Why? No planning. No discipline. Just thrill

Your focus must be long-term consistency. Not one-year thrill.

Tax Impacts You Must Know

If you sell equity mutual funds in short term (under 1 year):

You pay 20% as short-term capital gains tax

If you hold equity mutual funds for over 1 year:

You get Rs. 1.25 lakh LTCG free

Above that, you pay 12.5% LTCG tax

Debt funds are taxed as per your slab
(though you may be below taxable slab right now)

Still, start clean. Keep mutual fund statements safely.

Your Corpus Goal: Realistic or Risky?

You said you want a corpus by graduation next year.

Let’s assess:

You have max 12–15 months

You can invest Rs. 10,000–12,000/month

You might build Rs. 1.2–1.5 lakh by SIP

Don’t expect 30% return in 1 year

That’s not realistic

Even the best funds don’t give that yearly

Be happy with 10–14% in short term

In long term, compounding does the real magic

So instead of chasing a quick lump sum, focus on starting habits.
Your future self will thank you.

Other Areas You Must Focus Now

Apart from SIPs, track these:

Build a LinkedIn profile for freelance work

Try international projects for more earnings

Track your expenses using apps

Maintain a cash flow sheet monthly

Start learning Excel, Power BI or Python

These skills boost income by 2x soon

Keep Rs. 5,000–10,000 as emergency cash

Stay away from credit cards

Don’t take BNPL loans or EMI schemes

Avoid gadgets buying temptation

Spend on things that help you earn more

This way, your financial base becomes strong from early age.

What to Read and Watch

You’re on Zerodha. Don’t just watch charts.

Instead:

Read mutual fund factsheets

Read about risk-adjusted returns

Watch certified financial planners on YouTube

Ignore ‘tip’ channels and gambling content

Don’t waste time on IPO hype or stock gossip

Use that time to build your portfolio

Track your SIPs monthly

Read one investing book every quarter

Knowledge + practice will grow your wealth steadily.

Avoid These Common Mistakes

Don’t try F&O (futures & options) now

Don’t open too many demat accounts

Don’t take intraday trades

Don’t listen to telegram stock groups

Don’t invest on tips from influencers

Don’t believe ‘10X stock’ reels

Don’t compare your corpus with others

Everyone is in different stages

Don’t quit SIP if returns slow down

Don’t use money needed in next 3 months in equity

Stay clear and committed.

Finally

You’re at the best age to begin wealth creation.

Start SIPs in regular plans of actively managed mutual funds.
Avoid index funds, direct plans, or stock-picking shortcuts.
Build good habits. Don’t chase fast returns.
Focus on SIPs, upskilling, savings, and self-growth.
Stay connected with a Mutual Fund Distributor backed by a Certified Financial Planner.
They guide, protect, and plan with you.
Start small. Stay steady. Finish big.

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x