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Ramalingam

Ramalingam Kalirajan  |7262 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 01, 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
Khwaja Question by Khwaja on Jun 30, 2024Hindi
Money

Hi Sir... I am 43 years and having 3 girls childrens... I am working and monthly earning is 35K, i have own house with value 40L, i want start savings for my daughters education and marriages.. I dont know anything about mutual funds, how to invest and where to invest, pls guide me about mutual fund investments..

Ans: let's talk about investing for your daughters' future. Mutual funds can be a great way to grow your savings over time. Here's a detailed guide to help you understand and start investing in mutual funds.

Understanding Mutual Funds
What Are Mutual Funds?
Mutual funds pool money from many investors to invest in various securities like stocks, bonds, and other assets. Professional fund managers manage these funds, aiming to grow the investment while managing risk.

Types of Mutual Funds
There are different types of mutual funds:

Equity Funds: These invest in stocks and have the potential for high returns but come with higher risk.

Debt Funds: These invest in bonds and are generally safer with lower returns.

Hybrid Funds: These invest in both stocks and bonds, balancing risk and return.

Benefits of Mutual Funds
Professional Management
Investing through mutual funds means you get the benefit of professional fund managers making investment decisions on your behalf. This expertise can be especially valuable if you're not familiar with the stock market.

Diversification
Mutual funds invest in a variety of assets, which helps spread risk. If one asset underperforms, others might do well, balancing the overall performance.

Liquidity
Mutual funds are relatively liquid investments, meaning you can easily buy or sell your investments. This makes it easier to access your money when needed.

Starting Your Investment Journey
Setting Goals
Before investing, it's crucial to set clear financial goals. For instance, you want to save for your daughters' education and marriages. Estimate the amount you will need and the time frame.

Risk Assessment
Understand your risk tolerance. Since you're saving for long-term goals, you might be able to take on more risk for potentially higher returns. However, ensure you are comfortable with the level of risk.

Investment Amount
Decide how much you can invest regularly. Even small amounts can grow significantly over time due to the power of compounding.

Choosing the Right Funds
Equity Funds for Growth
Since you have long-term goals, consider investing in equity funds. They have the potential for higher returns, which can help you reach your financial goals faster.

Hybrid Funds for Balance
If you prefer a balance between risk and return, hybrid funds can be a good choice. They invest in both equities and debt instruments, offering a mix of growth and stability.

Debt Funds for Stability
If you have a low-risk tolerance, debt funds can provide stability. Though the returns are lower compared to equity funds, they are less volatile.

How to Invest
Systematic Investment Plan (SIP)
A SIP allows you to invest a fixed amount regularly, say monthly. This approach helps inculcate a disciplined saving habit and averages out the cost of investment over time.

Lump Sum Investment
If you have a significant amount to invest initially, you can consider a lump sum investment. This method might be suitable if you receive a windfall or bonus.

Regular Funds vs. Direct Funds
Investing through a Certified Financial Planner (CFP) using regular funds can provide you with professional guidance and support. Although direct funds have lower expense ratios, they require more knowledge and effort to manage.

Creating a Diversified Portfolio
Mix of Funds
A well-diversified portfolio should include a mix of equity, hybrid, and debt funds. This combination can help balance risk and return while working towards your financial goals.

Reviewing and Rebalancing
Regularly review your portfolio to ensure it aligns with your goals. Rebalancing helps maintain the desired asset allocation, adjusting for changes in market conditions.

Practical Steps to Start Investing
Selecting a Certified Financial Planner (CFP)
A CFP can provide personalized advice, helping you choose the right mutual funds based on your financial goals, risk tolerance, and investment horizon.

KYC Compliance
Complete the Know Your Customer (KYC) process, which is mandatory for investing in mutual funds. This involves submitting identity and address proofs.

Investing Through MFD
You can invest in mutual funds through a Mutual Fund Distributor (MFD). They can guide you through the process, provide valuable insights, and help you choose the best funds for your needs. This method is convenient and ensures you have professional support.

Monitoring Your Investments
Keep track of your investments regularly. Many platforms offer tools and reports to help you monitor the performance of your mutual funds.

Addressing Concerns
Market Volatility
It's natural to be concerned about market volatility. Remember, mutual funds are long-term investments. Short-term fluctuations are normal, and staying invested can help you ride out the volatility.

Understanding Fees
Mutual funds come with certain fees, such as expense ratios and exit loads. While these fees might seem small, they can impact your returns over time. Ensure you understand the fee structure before investing.

Avoiding Common Mistakes
Avoid trying to time the market or chasing past performance. Instead, focus on your financial goals and stick to your investment plan.

Educating Yourself
Continuous Learning
Investing in mutual funds requires some knowledge. Take time to educate yourself about different types of funds, market trends, and investment strategies.

Resources
Utilize resources like financial news, online courses, and advice from your CFP to stay informed and make educated decisions.

Final Insights
Investing in mutual funds can be a powerful tool to secure your daughters' future. By understanding your goals, assessing your risk tolerance, and choosing the right funds, you can create a solid investment plan.

Start with small, regular investments through a SIP, and gradually build your portfolio. Seek guidance from a Certified Financial Planner to ensure you're on the right track.

Remember, investing is a journey. Stay patient, stay informed, and keep your long-term goals in sight.

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  |7262 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 04, 2024Hindi
Money
Hello... I am 36 year old female working in a public sector bank. I am planning to come of out my present job after 4 years. I am interested in starting investment in mutual funds. I already have 12 lakhs in sip, 14 lakhs in fd and 4 in savings account Kindly guide me in doing further investments in mutual funds
Ans: Mutual funds are a popular investment option. They pool money from many investors. This money is then invested in stocks, bonds, or other securities. Professional fund managers manage these investments. Mutual funds offer diversification, which reduces risk. They are a good choice for long-term financial goals.

Your Current Financial Situation
You have Rs. 12 lakhs in SIPs, Rs. 14 lakhs in FDs, and Rs. 4 lakhs in a savings account. This is a solid start. It shows your commitment to saving and investing. You are on the right track. However, diversifying your investments is important.

Benefits of Mutual Funds
Mutual funds offer several advantages:

Diversification: They spread your money across various investments. This reduces the risk of loss.

Professional Management: Experts handle the investments. They make informed decisions based on market research.

Liquidity: You can easily buy or sell mutual fund units. This offers flexibility in managing your finances.

Variety: There are different types of mutual funds. You can choose based on your risk appetite and financial goals.

Types of Mutual Funds
Mutual funds come in different categories. Each category has its own risk and return characteristics.

Equity Funds
Equity funds invest in stocks. They have higher potential returns but also higher risk. They are suitable for long-term goals. These funds are ideal for a horizon of 5 years or more.

Debt Funds
Debt funds invest in fixed-income securities. These include bonds and treasury bills. They are less risky compared to equity funds. They provide regular income and are suitable for short to medium-term goals.

Hybrid Funds
Hybrid funds invest in both stocks and bonds. They offer a balanced approach. They provide moderate returns with moderate risk. These funds are good for investors seeking a mix of growth and income.

Setting Your Financial Goals
Identify your financial goals before investing. This helps in choosing the right mutual funds. Your goals can be:

Retirement: Build a corpus for a comfortable retirement. Equity and hybrid funds are suitable.

Child's Education: Save for your child's education. Equity funds are a good choice for long-term goals.

Emergency Fund: Maintain an emergency fund. Debt funds or liquid funds are ideal for this purpose.

Asset Allocation
Asset allocation is crucial. It involves dividing your investments among different asset classes. This strategy reduces risk and maximizes returns. Your asset allocation should be based on your risk tolerance and investment horizon.

Risk Tolerance
Understand your risk tolerance. It is your ability to handle market fluctuations. If you have a high-risk tolerance, you can invest more in equity funds. If you prefer stability, opt for debt funds.

Investment Horizon
Your investment horizon is the duration you plan to stay invested. For long-term goals, equity funds are suitable. For short-term goals, debt funds are better.

Systematic Investment Plan (SIP)
SIP is a disciplined way of investing. It involves investing a fixed amount regularly. This can be monthly, quarterly, or annually. SIP helps in averaging the cost of investment. It reduces the impact of market volatility.

Systematic Withdrawal Plan (SWP)
SWP allows you to withdraw a fixed amount regularly. This is useful for generating regular income. It is suitable for retirees or those needing regular cash flow.

Avoiding Common Mistakes
Avoid common mistakes while investing in mutual funds:

Chasing Past Performance: Do not invest based on past performance. It does not guarantee future returns.

Ignoring Expenses: Be aware of the expenses involved. These include expense ratio and exit load.

Lack of Diversification: Do not put all your money in one fund. Diversify across different types of funds.

Monitoring Your Investments
Regularly monitor your investments. Review their performance periodically. This helps in making necessary adjustments. It ensures that your investments align with your goals.

Rebalancing Your Portfolio
Rebalance your portfolio periodically. This involves realigning the asset allocation. It helps in maintaining the desired level of risk.

Consulting a Certified Financial Planner
Seek guidance from a Certified Financial Planner. They can provide personalized advice. They help in creating a comprehensive financial plan. Their expertise ensures that your investments align with your goals.

Tax Implications
Understand the tax implications of mutual fund investments. Equity funds are subject to capital gains tax. Long-term capital gains (LTCG) tax is applicable after one year. It is 10% on gains exceeding Rs. 1 lakh. Short-term capital gains (STCG) tax is 15%. Debt funds have different tax rules. LTCG is applicable after three years at 20% with indexation. STCG is taxed as per your income slab.

Advantages of Actively Managed Funds
Actively managed funds have professional managers. They aim to outperform the market. They adjust the portfolio based on market conditions. This can lead to higher returns compared to passive funds.

Disadvantages of Index Funds
Index funds track a specific index. They do not aim to outperform the market. Their returns are tied to the index performance. They lack flexibility in changing market conditions. Actively managed funds can provide better returns with expert management.

Benefits of Regular Funds
Investing through regular funds offers benefits. Certified Financial Planners can guide you. They provide valuable insights and advice. They help in selecting the right funds. They assist in creating a balanced portfolio.

Evaluating Fund Performance
Evaluate the performance of mutual funds before investing. Look at the historical returns. Check the consistency of returns. Compare the fund's performance with its benchmark. Analyze the fund manager's track record.

Expense Ratio
The expense ratio is the annual fee charged by the fund. It covers the management and administrative costs. A lower expense ratio is preferable. It affects the overall returns on your investment.

Exit Load
Exit load is a fee charged on early withdrawal. It is a percentage of the redeemed amount. Be aware of the exit load before investing. It impacts the returns if you withdraw before the specified period.

Portfolio Diversification
Diversify your portfolio across different sectors and asset classes. This reduces the impact of poor performance in one sector. It helps in achieving a balanced risk-return profile.

Risk Management
Effective risk management is essential. Diversification and asset allocation are key strategies. Regularly review and rebalance your portfolio. Stay informed about market trends and economic conditions.

Market Volatility
Be prepared for market volatility. The market can be unpredictable. Do not panic during market downturns. Stay focused on your long-term goals. SIPs help in averaging the cost during volatile markets.

Financial Discipline
Maintain financial discipline. Stick to your investment plan. Avoid making impulsive decisions based on market movements. Regularly invest through SIPs to stay disciplined.

Emergency Fund
Keep an emergency fund separate. It should cover at least six months of expenses. Use debt funds or liquid funds for this purpose. It ensures liquidity and safety of funds.

Financial Goals Review
Review your financial goals periodically. Life circumstances can change. Your goals may evolve. Adjust your investment strategy accordingly. Ensure that your investments align with your current goals.

Long-Term Perspective
Have a long-term perspective. Mutual funds are best for long-term wealth creation. Do not focus on short-term market fluctuations. Stay invested to benefit from compounding returns.

Financial Literacy
Enhance your financial literacy. Understand the basics of mutual fund investing. Stay informed about market trends and economic factors. This helps in making informed investment decisions.

Benefits of SIP
SIP offers several benefits:

Disciplined Investing: It encourages regular investing.

Rupee Cost Averaging: It averages the cost of investment over time.

Compounding: It helps in compounding returns over the long term.

Financial Advisor vs. Certified Financial Planner
Certified Financial Planners have specialized training. They provide comprehensive financial planning. They offer personalized advice based on your financial situation. They help in achieving your financial goals.

Final Insights
Mutual fund investments are a powerful tool for wealth creation. They offer diversification, professional management, and flexibility. Understand your financial goals and risk tolerance. Choose the right type of mutual funds. Regularly monitor and review your investments. Stay disciplined and focused on your long-term goals. Seek guidance from a Certified Financial Planner. They can help you navigate the complexities of mutual fund investing.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7262 Answers  |Ask -

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

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Money
My salary is 67k in hand my age is 29 and unmarried and i have no investment now i want to start investment with a motive to get retire in age 60 and also build wealth for my child and home how can i achieve all this through which Mutual funds so that i can easily fund my child education in future and for home
Ans: Setting Financial Goals
Your primary financial goals are:

Retirement at age 60
Wealth creation for future child's education
Purchasing a home
Let's devise a plan to achieve these goals through mutual fund investments.

Monthly Budget Allocation
Your salary is Rs. 67,000. Here's a suggested allocation:

Emergency Fund: Save 6 months' expenses in a savings account or liquid fund.
SIP Investment: Allocate 20-25% of your salary for SIPs (Rs. 13,400 - Rs. 16,750).
Short-term Goals: Save for immediate needs (10% of salary).
Lifestyle Expenses: Allocate the rest for living expenses and discretionary spending.
Suggested Investment Strategy
Diversified Portfolio
Equity Mutual Funds:

Invest in large-cap and multi-cap funds for stable growth.
Allocate a portion to mid-cap and small-cap funds for higher returns.
Debt Mutual Funds:

Invest in debt funds for stability and lower risk.
Allocate a portion to balanced or hybrid funds for a mix of equity and debt.
Systematic Investment Plan (SIP):

Start SIPs in chosen funds.
Regular investments ensure disciplined savings and cost averaging.
Example Allocation
Large-Cap Fund:

Stability and steady growth.
Allocate Rs. 5,000 per month.
Multi-Cap Fund:

Diversified equity exposure.
Allocate Rs. 4,000 per month.
Mid-Cap Fund:

Higher growth potential.
Allocate Rs. 3,000 per month.
Small-Cap Fund:

High risk, high reward.
Allocate Rs. 2,000 per month.
Balanced Fund:

Mix of equity and debt.
Allocate Rs. 2,000 per month.
Retirement Planning
Calculate Future Needs
Retirement Corpus:

Estimate future expenses.
Use a retirement calculator for precise planning.
Regular Reviews:

Adjust investments as needed.
Increase SIPs with salary hikes.
Investment Horizon
Long-Term Focus:
Equity funds for long-term growth.
Debt funds for stability as retirement approaches.
Child's Education
Education Fund
Dedicated SIPs:

Start a separate SIP for education.
Choose child education-specific funds.
Goal-Based Planning:

Estimate education costs.
Adjust SIPs to meet target amount.
Home Purchase
Down Payment and Loan
Savings Plan:

Save for a down payment in a short-term debt fund or FD.
Consider a home loan for the balance amount.
EMI Affordability:

Ensure EMIs are within your budget.
Keep debt-to-income ratio manageable.
Final Insights
Diversification:

Ensure portfolio is diversified.
Minimize risk by spreading investments.
Regular Monitoring:

Review investments periodically.
Rebalance portfolio as needed.
Professional Advice:

Consult a Certified Financial Planner for personalized guidance.
Ensure alignment with financial goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Kanchan

Kanchan Rai  |438 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 14, 2024

Asked by Anonymous - Dec 13, 2024Hindi
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Relationship
My partner and I have been married for 5 years. Lately, I’ve been feeling lonely in my marriage. My partner and I barely talk, and it feels like we’re just coexisting. How can I bring back the emotional connection and intimacy without making it seem like I’m blaming them for the distance?
Ans: Start by creating opportunities for meaningful interaction. Sometimes the daily routines and responsibilities can create emotional walls, so finding a calm and positive environment for conversation is key. You might begin by sharing your feelings in a way that emphasizes your own experience rather than pointing out what your partner might not be doing. For example, saying something like, "I've been feeling a little disconnected lately, and I miss the closeness we used to share," opens the door for dialogue without sounding accusatory.

Rekindling intimacy often starts with small, intentional efforts to reestablish connection. This might mean setting aside time for each other, even if it’s just a few minutes of uninterrupted conversation at the end of the day. Look for moments to express appreciation for your partner, as this can help rebuild emotional warmth and remind them of the value they bring to your life.

It’s also worth reflecting on whether external stresses might be contributing to the distance. If either of you has been overwhelmed by work, family, or personal challenges, addressing those together can foster a sense of partnership and mutual support. Similarly, revisiting shared memories or engaging in activities you used to enjoy together can help reignite the bond you once had.

Lastly, be patient and consistent. Emotional intimacy doesn’t always come back instantly, but with genuine effort, kindness, and an open heart, you can rebuild the connection over time. Consider it a journey you’re embarking on together, rather than something you need to fix alone. If you feel like external guidance might help, discussing this with a couples therapist could provide both of you with tools to strengthen your relationship in a supportive environment.

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Ramalingam

Ramalingam Kalirajan  |7262 Answers  |Ask -

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

Asked by Anonymous - Dec 14, 2024Hindi
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Money
URGENT: I have taken huge loan of 15 Lac ( it started with Rs 10000 initially)but I don't have a job. I am adjusting and paying the interest and i am going on taking loans.. Don't know where it will end. Please help me? Now that I have more money than working in any company, People are giving more and more loan thinking I am well off. Sometimes I feel the only solution is Suicide!
Ans: I’m truly sorry to hear about the immense stress you're facing. It’s essential to know that this situation, though overwhelming, can be resolved with the right steps. Your life is precious, and there are people and strategies to help you regain control over your finances and emotional well-being.

Here’s a step-by-step approach to help you:

1. Immediate Steps to Address Emotional Distress
Reach Out to Trusted People: Speak to a close friend, family member, or counselor about how you’re feeling. Sharing your worries can help lighten the burden.

Professional Support: Consider consulting a psychologist or counselor to address feelings of despair. They can guide you in coping and finding hope.

Suicide Helplines: Helplines like AASRA are available 24/7 in India. They provide non-judgmental support and advice.

2. Stop Taking Additional Loans
Taking more loans will only worsen the debt cycle. Communicate with your lenders honestly and explain your current situation.

Avoid making further financial commitments until a proper repayment plan is in place.

3. Evaluate and Consolidate Existing Loans
Make a List of All Loans: Note down the principal, interest rates, and EMI for each loan.

Debt Consolidation: If possible, consolidate your loans into one with a lower interest rate. This will simplify repayments and reduce the interest burden.

Negotiate with Lenders: Speak to your lenders about restructuring your loans. Many financial institutions are willing to renegotiate terms if they see genuine repayment intent.

4. Cut Down on Unnecessary Expenses
Focus only on essential expenses like food, utilities, and basic needs.

Avoid luxury spending or non-essential purchases until you regain financial stability.

5. Seek Employment or Alternate Income
Explore freelance, part-time, or full-time opportunities that align with your skills.

Start small businesses or use your talents to generate income, even if it's modest initially.

6. Engage with a Certified Financial Planner
A Certified Financial Planner can help create a practical repayment plan and optimise your resources. They can also guide you on managing money better in the future.
7. Prioritise Loan Repayment
Begin repaying high-interest loans first to reduce the overall burden.

Use any additional income to make systematic repayments.

8. Build a Support System
Inform your close family or friends about your financial situation. Their understanding and support can help you through this tough time.

Avoid isolation. Regular interactions with loved ones can provide emotional strength.

Final Thoughts
This phase is challenging, but it’s not permanent. Every problem has a solution, and with the right support and plan, you can overcome this.

Your life and well-being are far more valuable than any financial stress. You are not alone, and help is available. Let’s take this one step at a time, and I assure you, there’s a brighter path ahead.

If you’d like, I can assist you further in creating a repayment strategy or exploring additional income options. Please let me know how I can help.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7262 Answers  |Ask -

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

Asked by Anonymous - Dec 14, 2024Hindi
Money
Dear Mr. Ramalingam, I have been reading your column regularly and feel you are giving great advice. Would like your advice and help in seeing what would be my income going forward per month and will that be adequate and how to supplement it. I am aged 62 in kerala. My wife is 58 not working and unmarried daughter, independently earning, who we hope will get married this year. Savings: 1.2 cr in Fd’s in banks and Post office 66 lakhs in PPF (I have been extending it by 5 years each time) 14 lakhs in NPS 1 lakhs in EPF last employment was in Jun 2024 44 lakhs in shares (portfolio bought many years back based on friends recommendation but only few stocks are doing ok rest is just sitting there) 90 lakhs in Mutual funds with several mutual funds (all in growth plans) 86 lakhs at cost price for A flat where I am staying and empty plot (both fully paid for) Income currently is from: LIC Jeevan Suraksha Plan, receiving Rs. 7,021 per month till death LIC Pradhan Mantri Vaya Vandana Yojana -annual receipt of - Rs. 77,979 (till mar 2032) when I get lumpsum back of app Rs. 10 lakhs New Jeevan Shanti Plan – fully paid up but receipts to commence from Mar 2027 monthly Rs. 36,450.00/- till death of self and wife Interest income from few of the FD or break fd principal when required. Little income from dividends Expense: Tata ULIP 20 yr plan premium of 1 lakhs till last payment in 2026 (2 payments left), mature in 2027, current value is 57 lakhs. TATA AIA Fortune Guarantee Pension – annual payment of Rs. 3,06,000/ till last payment in 2026 (2 payments left). 1,07,000 per year from Apr 2028 for life of both of us and return of premium at end of both lives. Aditya Birla Guaranteed Milestone Plan –Paid Rs. 1,02,500 for 5 year last payment this year. Will receive Rs.8,94,000/ in Dec 2031 has life cover of Rs. 15 lakhs (Worst plan I was conned into taking) Family Health insurance of 8 lakhs cover plus a super top up floater of 5 lakhs, covering all 3 of us approximately 45,000 for both policies 12 year old car with 4,000 insurance policy Other expenses approximately 30,000 per month for food etc. Should I change any of my investment etc to get a better income to meet future needs Thanks
Ans: You have diligently built a robust and diversified portfolio. It includes fixed deposits, mutual funds, real estate, and insurance plans. You also have various annuity and pension products. Your current financial situation showcases foresight and discipline.

However, to ensure your monthly income meets your needs and grows with inflation, some restructuring is necessary. Let’s evaluate your assets and income streams in detail and suggest ways to optimise them.

Existing Income Sources and Expenses

Current Income

LIC Jeevan Suraksha Plan: Rs. 7,021 per month (lifetime income).

LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY): Annual income of Rs. 77,979 till 2032.

New Jeevan Shanti Plan: Monthly income of Rs. 36,450 from 2027 (lifetime for self and wife).

Interest Income: From fixed deposits and dividends from shares.

Current Expenses

Household expenses: Rs. 30,000 per month.

Insurance premiums: Rs. 3,51,000 annually until 2026.

Health insurance: Rs. 45,000 per year.

Asset Analysis

Fixed Deposits

Current Value: Rs. 1.2 crore.

Analysis: While secure, FD returns are low and may not keep pace with inflation. Only retain a portion for emergencies.

Public Provident Fund (PPF)

Current Value: Rs. 66 lakh.

Analysis: PPF offers tax-free and risk-free returns. Continue extending it as a safe long-term investment.

National Pension Scheme (NPS)

Current Value: Rs. 14 lakh.

Analysis: NPS has market exposure, offering potential growth. Partial withdrawal for reinvestment can be considered post-retirement.

Employee Provident Fund (EPF)

Current Value: Rs. 1 lakh.

Analysis: Withdraw and reinvest for higher returns.

Shares Portfolio

Current Value: Rs. 44 lakh.

Analysis: A few stocks are performing, while others are stagnant. Retain fundamentally strong stocks. Sell non-performing ones and reinvest proceeds.

Mutual Funds

Current Value: Rs. 90 lakh.

Analysis: Growth plans are suitable for long-term wealth creation. However, evaluate and streamline the portfolio with the help of a Certified Financial Planner.

Real Estate

Flat: Rs. 86 lakh (self-occupied).

Plot: Value not mentioned.

Analysis: These assets provide stability but do not generate regular income. Retain them as non-liquid investments.

Insurance Plans

TATA ULIP: Current value of Rs. 57 lakh, matures in 2027.

Recommendation: Surrender post-2026 and reinvest in mutual funds for better returns.

TATA AIA Fortune Guarantee Pension: Annual payout of Rs. 1,07,000 from 2028.

Recommendation: Retain as a fixed income source.

Aditya Birla Guaranteed Milestone Plan: Payout of Rs. 8.94 lakh in 2031.

Recommendation: Retain until maturity. Avoid similar plans in future.

Recommendations to Enhance Income

1. Restructure Fixed Deposits

Retain Rs. 30 lakh as emergency funds in liquid FDs.

Reallocate Rs. 90 lakh into debt mutual funds for better post-tax returns. Choose funds with low risk and stable performance.

2. Optimise Shares Portfolio

Retain strong-performing stocks. These can provide growth over the long term.

Liquidate underperforming stocks and reinvest proceeds into equity mutual funds. Select funds aligned with your risk tolerance.

3. Streamline Mutual Funds Portfolio

Review your existing funds to avoid duplication and underperformance.

Retain well-performing funds and shift others to actively managed diversified funds.

Opt for regular funds through a Certified Financial Planner for professional advice and monitoring.

4. PPF and NPS

Continue extending PPF for tax-free returns.

Do not withdraw from NPS until it’s mandated. Allocate the lumpsum received wisely at maturity.

5. Insurance Plan Adjustments

Allow the TATA ULIP to mature and surrender it in 2027.

Retain the TATA AIA and Aditya Birla plans until maturity as fixed income sources.

Avoid high-premium insurance plans in future.

6. Increase Monthly Income

From 2027 onwards, New Jeevan Shanti and other payouts will provide substantial monthly income.

Until then, use dividends, interest from debt mutual funds, and systematic withdrawals from mutual funds for supplementary income.

7. Plan for Inflation

Maintain a mix of equity and debt investments to beat inflation.

Ensure equity exposure is at least 40% of your portfolio for long-term growth.

8. Health Insurance Adequacy

Current health insurance of Rs. 8 lakh with a Rs. 5 lakh super top-up is reasonable.

Review coverage every 2-3 years and increase if necessary.

Final Insights

Your financial portfolio is solid and well-diversified. With minor adjustments, it can provide inflation-adjusted income. Focus on reallocating underperforming assets and streamlining investments. Regular reviews will ensure your wealth grows while meeting your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Archana

Archana Deshpande  |93 Answers  |Ask -

Image Coach, Soft Skills Trainer - Answered on Dec 13, 2024

Asked by Anonymous - Dec 11, 2024Hindi
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Career
I am 35, MBA from a reputed college. I recently took over as senior project manager in a software company. Over the last few months, I’ve been asked to lead more high-stakes presentations, but every time I step in front of a group of senior professionals, my nerves take over. I can’t seem to communicate my ideas clearly, and I end up rambling or losing the audience. It’s frustrating because I know the content is strong, but I can’t deliver it with the confidence it needs. I’m starting to feel like this could affect my career growth if I don’t improve. I want to know how to seem more confident and present my ideas with clarity.
Ans: Hi!!

I can understand what you are going through.
I have helped many a people to become better communicators, presenters and public speakers. I agree with you when you say .. that these skills will augur well for your career growth.
What I can say is this .. that it is a learnable skill. Practice and more practice is the only way ahead. You said your content is strong, that is 50% of the job done, so build up on this confidence and practice your delivery in front of the mirror or in front of encouraging family/friends.
The only way to gain confidence is to "JUST DO IT"....to calm your nerves- deep breathing techniques and visualizations techniques will be useful.
I can help you on this journey of being a person who delivers with panache!

There are books by Dale Carnegie on public speaking which can help you out. Also read about Abe Lincoln and his journey of becoming a great orator, it can maybe help you.

Remember, PRACTICE AND PRACTICE is the key to unlock your confidence and become the person who delvers with panache.

All the best!!

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