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Tejas Chokshi |126 Answers |Ask -Follow

Tax Expert - Answered on Apr 27, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more

Question by Chaya on Apr 25, 2023Hindi

Money

I am 45 years old house wife, I got married in 1996 and My Father died in 2015. He has not made any will on the ancestral property. I am survived by Mother and Elder brother. My brother is a Government Official, am I legally eligible to get any share from my father's property and my brother is denying?

Ans: In India, the legal rights of inheritance to ancestral property are governed by the Hindu Succession Act, 1956. According to this act, as a daughter, you have an equal right to inherit your father's ancestral property along with your brother and mother, irrespective of whether a will has been made or not. This applies even if the property was acquired before the 1956 Act came into force.

Your brother cannot deny you of your legal right to inherit the ancestral property. If he is doing so, you have the right to take legal recourse and file a suit for partition of the property in court. You can also seek the assistance of a qualified lawyer to help you understand your legal rights and the process of claiming your share in the property.

It is important to note that the exact share of each person would depend on various factors such as the number of legal heirs, the type of property, and whether any partition has taken place in the past. A qualified lawyer can help you understand these factors and assist you in taking the necessary steps to claim your rightful share in the ancestral property.

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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Financial Planner - Answered on Aug 26, 2023

Asked by Anonymous - Aug 25, 2023Hindi

Money

My father in law died 3 years back. He did not leave a will. there are 4 off springs. son was nominee for shares and mutual fund and ppf. which he has claimed and is not willing to share with his sisters. According to him, as he is nominee he has is the owner of assets. What is correct legal position?

Ans: On demise, the nominee will get the mutual fund investments. However, the nominee only holds it "in trust" till the legal heir claims it. You can discuss with a lawyer and take this up accordingly.

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Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Question by vipin - May 14, 2024Hindi

Money

I need to get 5 crore in 15 years for my children higher study.. Marriage and my early retire... How much should I invest in mutual fund to achieve the target.... My current income is 2 lakh per month and monthly expenses of 1.7 lakh per month

Ans: Firstly, let me commend you on your foresight in planning for your children's higher education, marriage, and your early retirement. It's crucial to start early and set clear financial goals to ensure a secure future for yourself and your loved ones.

Understanding Your Financial Goal

Your goal of accumulating ?5 crore in 15 years for various life events requires careful financial planning and disciplined savings. It's essential to assess your current financial situation and determine the required investment amount to achieve this target.

Analyzing Income and Expenses

Your monthly income of ?2 lakh and expenses of ?1.7 lakh indicate a healthy surplus that can be utilized for investments. It's commendable that you have a comfortable margin between your income and expenses, which provides room for savings and investments.

Estimating Required Investment Amount

To estimate the required investment amount to accumulate ?5 crore in 15 years, we need to consider factors such as:

Time Horizon: With a 15-year investment horizon, you have a reasonable timeframe to achieve your goal, allowing you to benefit from the power of compounding.

Rate of Return: The expected rate of return on your investments plays a crucial role in determining the required investment amount. While past performance is not indicative of future results, historical data can provide insights into potential returns.

Systematic Investment Plan (SIP): Investing through SIPs allows you to regularly invest fixed amounts over time, leveraging the benefits of rupee cost averaging and compounding.

Calculating Required Monthly Investment

Based on the estimated rate of return and investment horizon, we can calculate the required monthly investment amount to achieve your target corpus of ?5 crore in 15 years. By factoring in the power of compounding, we can determine the optimal investment strategy to reach your financial goal.

Assuming a conservative rate of return on your investments, we can use financial planning tools to calculate the monthly SIP amount needed to accumulate ?5 crore in 15 years. By inputting variables such as the expected rate of return, investment duration, and target corpus, we can arrive at the required monthly investment amount.

Benefits of Actively Managed Funds

Actively managed mutual funds offer several advantages over passive index funds or ETFs:

Professional Management: Skilled fund managers actively monitor market trends and adjust portfolio allocations to capitalize on growth opportunities, potentially leading to higher returns.

Customized Strategies: Actively managed funds employ dynamic investment strategies tailored to market conditions and investment objectives, providing investors with a personalized approach to wealth accumulation.

Disadvantages of Direct Funds

Direct funds require investors to research and select funds independently, which can be time-consuming and challenging for those with limited financial knowledge. Additionally, the absence of professional advice may result in suboptimal investment decisions and higher risks.

Benefits of Regular Funds Investing through MFD with CFP Credential

Investing in regular funds through a Certified Financial Planner (CFP) credentialled Mutual Fund Distributor (MFD) offers several benefits:

Professional Guidance: A CFP-certified MFD provides personalized investment advice tailored to your financial goals and risk profile, helping you make informed decisions.

Access to a Wide Range of Funds: MFDs offer access to a diverse range of mutual funds, including both actively managed and index funds, enabling you to build a well-rounded investment portfolio.

Final Words

Achieving a target corpus of ?5 crore in 15 years requires a disciplined savings approach and strategic investment planning. By investing regularly in mutual funds through SIPs and leveraging the benefits of compounding, you can work towards realizing your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 14, 2024Hindi

Money

Hello Sir, i am 34 yrs now and invested in mutual funds from more than 2 and half yrs and its current value is 2.5 lakh and ppf with value 3 lakh and stocks worth 2 lakhs. I am also invested in ulip for 1 lack per annum 5 years and its current value is 7.2 lakh. If i invest in mutual funds(10000 per month) till 55 yrs how much corpus will i get?

Ans: It's great to see your proactive approach towards investing and building wealth for your future. Your commitment to mutual funds, PPF, stocks, and ULIPs reflects a well-diversified investment portfolio.

Understanding Your Current Investments

Your investment portfolio comprising mutual funds, PPF, stocks, and ULIPs showcases a balanced mix of asset classes, indicating a thoughtful approach towards wealth creation.

Evaluating Mutual Fund Investment

By investing ?10,000 per month in mutual funds till the age of 55, you're adopting a disciplined savings approach that can potentially yield substantial returns over the long term.

Analyzing Expected Corpus

To estimate the corpus you may accumulate by the age of 55 through your monthly mutual fund investments, we need to consider several factors:

Investment Duration: With approximately 21 years left until you turn 55, your monthly investments have a considerable time horizon to grow.

Rate of Return: The expected rate of return on your mutual fund investments plays a crucial role in determining the final corpus. While past performance is not indicative of future results, historical data can provide insights into potential returns.

Systematic Investment Plan (SIP): Investing through SIPs allows you to benefit from the power of compounding by regularly investing fixed amounts over time.

Estimating Future Corpus

To provide an estimate of the corpus you may accumulate by the age of 55, we can use a conservative annual return assumption for your mutual fund investments.

Considering historical market performance and assuming a moderate annual return rate, we can project the growth of your monthly investments over the next 21 years. By compounding your investments annually, we can calculate the future value of your mutual fund portfolio.

Benefits of Actively Managed Funds

Actively managed mutual funds offer several benefits over passive index funds or ETFs:

Professional Management: Skilled fund managers actively monitor market trends and adjust portfolio allocations to capitalize on growth opportunities, potentially leading to higher returns.

Risk Management: Actively managed funds employ strategies to mitigate risks and optimize returns, providing investors with a balanced risk-return profile.

Final Words

While it's essential to have a long-term investment horizon and a disciplined savings approach, it's equally crucial to regularly review and adjust your investment strategy as per changing market conditions and personal financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 16, 2024Hindi

Money

I am planning to close my home loan by investing money nearly 90k every month in mutual fund, please suggest the fund name that I want to close nearly 50 lakh within 5 to 7 years spam.

Ans: Planning to Close Home Loan with Mutual Fund Investments

Greetings,

It's commendable that you're planning to accelerate the repayment of your home loan through mutual fund investments. This strategy can help you achieve financial freedom sooner while optimizing your investment potential.

Understanding Your Goal

Your goal of closing nearly ?50 lakh of your home loan within 5 to 7 years through monthly investments of ?90,000 requires a strategic investment approach. It's essential to select mutual funds that offer the potential for consistent returns over the specified timeframe.

Selecting Mutual Funds

As a Certified Financial Planner, I recommend considering the following factors when selecting mutual funds for your investment strategy:

Risk Profile: Given your relatively short investment horizon of 5 to 7 years, it's crucial to prioritize stability and consistency over high-risk investments.

Investment Horizon: Since you aim to repay a significant portion of your home loan within a relatively short timeframe, opt for mutual funds with a proven track record of delivering consistent returns over similar periods.

Diversification: Spread your investments across different mutual fund categories, including large-cap, multi-cap, and balanced funds, to mitigate risks and optimize returns.

Benefits of Actively Managed Funds

While index funds offer lower expense ratios, actively managed funds have several advantages:

Potential for Higher Returns: Actively managed funds allow skilled fund managers to capitalize on market opportunities and adjust portfolio allocations based on changing market conditions, potentially leading to higher returns.

Risk Management: Fund managers actively monitor market trends and adjust investment strategies to mitigate risks and capitalize on growth opportunities, enhancing the overall risk-return profile of the fund.

Disadvantages of Index Funds

Index funds, while offering lower expense ratios and typically tracking the performance of a market index, have certain disadvantages:

Limited Upside: Since index funds aim to replicate the performance of an underlying index, they may miss out on potential opportunities for outperformance compared to actively managed funds.

Inflexibility: Index funds are bound to track their respective indices, limiting the ability to adjust portfolio allocations or take advantage of market inefficiencies.

Benefits of Regular Funds Investing through MFD with CFP Credential

Investing in regular funds through a Certified Financial Planner (CFP) credentialled Mutual Fund Distributor (MFD) offers several benefits:

Professional Guidance: A CFP-certified MFD provides personalized investment advice tailored to your financial goals and risk profile, helping you make informed decisions.

Access to a Wide Range of Funds: MFDs offer access to a diverse range of mutual funds, including both actively managed and index funds, enabling you to build a well-rounded investment portfolio.

Strategic Approach to Investment Allocation

When allocating your monthly investment of ?90,000 across mutual funds, consider the following allocation strategy:

Diversification: Allocate your investments across different mutual fund categories to spread risks and capture growth opportunities across various market segments.

Risk Management: Prioritize stability and consistency by allocating a significant portion of your investments to funds with lower volatility and proven track records of delivering consistent returns.

Final Words

By carefully selecting mutual funds that align with your risk profile, investment horizon, and financial goals, you can effectively accelerate the repayment of your home loan while building long-term wealth. Remember to review your investment portfolio periodically and make adjustments as needed to stay on track towards achieving your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 19, 2024Hindi

Money

Sir nmste ,i am 30 years i am new and not knowledge mutual fund market etc.i can invest 10 k per month .my goal is 20 years 1 cr i want take risk 50 percent.of my invest and sir if i invest 10 years for 10k per month goal is 1cr risk take 50 percent can is possible. Sir

Ans: Setting Financial Goals

Namaste,

I appreciate your interest in investing and your ambition to build wealth for the future. It's a commendable step towards securing your financial well-being.

Understanding Your Goals

At 30, aiming for a target of ?1 crore in 20 years with a monthly investment of ?10,000 is an ambitious yet achievable goal. Your willingness to take on a 50% risk indicates your readiness to explore growth-oriented investment avenues.

Assessing Feasibility

Achieving a target of ?1 crore in 20 years with a monthly investment of ?10,000 requires a disciplined approach and strategic investment planning. With a 50% risk tolerance, you have the potential to explore growth-oriented investment avenues that offer higher returns over the long term.

Analyzing Investment Period

Investing ?10,000 per month for 10 years with a goal of ?1 crore involves higher risk-taking, given the shorter investment horizon. However, it's still achievable with a well-structured investment strategy and consistent monitoring.

Mitigating Risks

Given your willingness to take on a 50% risk, it's essential to diversify your investment portfolio across different asset classes such as equity, debt, and hybrid funds. This approach helps in mitigating risks and optimizing returns over the long term.

Recommendation

As a Certified Financial Planner, I recommend the following steps:

Start Early: Begin investing as soon as possible to benefit from the power of compounding.

Diversify: Allocate your investments across various mutual fund categories based on your risk tolerance and investment horizon.

Regular Review: Periodically review your investment portfolio to ensure it remains aligned with your financial goals and risk profile.

Final Words

Your goal of achieving ?1 crore in 20 years with a monthly investment of ?10,000 is achievable with a disciplined investment approach and prudent financial planning. By staying committed to your investment strategy and adapting to market dynamics, you can realize your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 17, 2024Hindi

Money

I am 25 years old with a time horizon of 20 yrs plus.I am doing sip of Rs.3000 each in the following direct plan schemes since the last one year.The schemes are mentioned below: Canara Robeco Blue chip equity fund,ICICI prudential nifty 50 index fund, SBI large and midcap fund, Mirae asset large and midcap fund, Kotak emerging equity fund, Motilal Oswal midcap fund, HDFC mid cap opportunities fund, Nippon India small cap fund, Axis small cap fund, Parag Parekh Flexi Cap fund, Quant Flexi cap fund, Quant Active fund, Quant tax saver fund. Kindly check my portfolio and suggest if rebalancing is required.

Ans: It's impressive to see your proactive approach towards investing at such a young age. Your commitment to SIPs reflects your long-term financial planning mindset.

Understanding Your Portfolio

You've built a diversified portfolio consisting of various equity funds, including large-cap, mid-cap, and small-cap funds. This diversification strategy is essential for mitigating risks and capturing growth opportunities across different market segments.

Analyzing Fund Selection

While direct plan schemes offer lower expense ratios, they require diligent monitoring and research. It's essential to assess the performance of each scheme regularly to ensure they align with your investment goals.

Identifying the Need for Rebalancing

Rebalancing your portfolio periodically is crucial to maintain the desired asset allocation and risk-return profile. Here's how you can evaluate if rebalancing is necessary:

Review Performance: Compare the performance of each fund relative to its benchmark index and peers. Look for consistent performance trends over time.

Assess Alignment: Evaluate if any funds have consistently underperformed or deviated from their stated investment objectives. This could indicate a need for adjustment.

Consider Risk and Horizon: Take into account your risk tolerance and investment horizon. Ensure that your portfolio's asset allocation remains suitable for your financial goals.

Recommendation for Rebalancing

Based on the analysis, if you find any funds consistently underperforming or deviating from their objectives, it might be prudent to consider reallocating your investments.

Reallocation Strategy: Redirect funds from underperforming schemes to those showing better prospects or explore new opportunities in line with your investment strategy.

Maintain Alignment: Ensure that your asset allocation remains aligned with your risk tolerance and long-term financial goals while rebalancing the portfolio.

Final Words

Your disciplined approach to investing is commendable. By periodically reviewing and rebalancing your portfolio, you'll optimize your returns and stay on track to achieve your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Question by P - May 19, 2024Hindi

Money

Hi Dear, I have purchased a duplex house recently for Rs.73 lacs. I have taken loan of Rs.43.20 lacs from SBI @ 9.6% which is higher and monthly installment is of Rs.36,700. I have FDR of Rs.20 lacs which are maturing in July 2024. I have query - should I renew FDRs with Bank and continue to pay installments of bank loan or on maturity of FDRs i should pay Rs.20 lacs for the loan or invest in mutual funds. Kindly suggest me better way. My monthly income is around Rs.1 lac.

Ans: Congratulations on your recent purchase! It's a significant step towards securing your future through property ownership.

Understanding Your Situation

I appreciate your proactive approach in seeking advice regarding the utilization of your Fixed Deposit Receipts (FDRs) and managing your housing loan. It shows your commitment to optimizing your financial resources.

Analyzing Options

You have two primary options: renewing your FDRs and continuing with the loan installments or utilizing the maturity amount to either partially pay off the loan or invest in mutual funds.

Considerations for Renewing FDRs

Renewing your FDRs with the bank ensures the safety of your principal amount while earning a fixed interest rate. However, given the current interest rate scenario, the returns might not be very lucrative.

Assessing Loan Repayment

Using the maturity amount to pay off a portion of your housing loan can reduce your interest burden and overall loan tenure. It's a prudent move if you wish to lessen your debt obligations and achieve financial freedom sooner.

Exploring Mutual Fund Investment

Investing the maturity amount in mutual funds offers the potential for higher returns compared to FDRs. However, it comes with market risks, and returns are not guaranteed. As a Certified Financial Planner, I advise considering your risk tolerance and investment horizon before venturing into mutual funds.

Recommendation

Given your current financial scenario and monthly income, I recommend a balanced approach:

Firstly, evaluate the interest rate on your housing loan and compare it with the potential returns from renewing your FDRs.
If the interest rate on the loan is significantly higher than the FDR returns, consider utilizing the maturity amount to partially pay off the loan.
With the remaining amount, you can consider reinvesting in FDRs or exploring other investment avenues like mutual funds, keeping in mind your risk appetite and financial goals.
Final Words

Your diligent approach to financial planning is commendable. By carefully weighing your options and aligning them with your financial goals, you'll make informed decisions to secure your financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Question by JITENDRA - May 17, 2024Hindi

Money

Hi, I am 54 with HBA1C level above 11. None of the Insurance company is ready to give me Any term Plan. Can u suggest any protective Insurance Plan as I have Home Loan of around rs. 1.5 Crore with No Insurance protection shield. Thank you.

Ans: Unfortunately, due to your high HbA1C level, securing traditional term life insurance might be difficult. However, there are a few options you can explore to protect your loved ones financially in case of your demise, especially considering your home loan:

1. Guaranteed Issue Whole Life Insurance:

This type of whole life insurance offers a death benefit regardless of your health condition. However, there are downsides:
Premiums are typically higher than term life insurance.
The death benefit may be lower compared to a traditional term plan.
The cash value accumulation component might be minimal.
2. Group Term Life Insurance:

Employers or professional organizations sometimes offer group term life insurance plans. These plans may have relaxed underwriting guidelines and might be worth exploring if available to you.
3. Focus on Managing Diabetes:

While it might not help with immediate insurance coverage, prioritizing diabetes management can significantly improve your health and potentially allow you to qualify for better insurance options in the future. Here are some resources that can help:
American Diabetes Association: https://diabetes.org/
National Institute of Diabetes and Digestive and Kidney Diseases: https://www.niddk.nih.gov/
4. Loan Protection Insurance (LPI):

Offered by some lenders, LPI pays off your outstanding loan balance in case of the borrower's death. While it doesn't provide benefits to your beneficiaries beyond the loan, it can help secure your home for your family.
5. Critical Illness Insurance:

This type of insurance pays a lump sum benefit if you are diagnosed with a critical illness, such as a heart attack or stroke. This money could be used to cover medical bills or your home loan.
Recommendation:

Consult a financial advisor specializing in high-risk life insurance. They can assess your specific situation and recommend the most suitable options for your needs.
Talk to your current mortgage lender about Loan Protection Insurance (LPI) to safeguard your home in case of an unfortunate event.
Remember, managing your diabetes is crucial for your overall health and future insurability. By exploring these alternatives and prioritizing your health, you can create a financial safety net for your loved ones.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Question by JITENDRA - May 17, 2024Hindi

Money

Hello Sir, I am 54 Year Old working on senior Position in Listed company and drawing CTC of 50+ Lakh. last few years I am suffering from high Diabetic and HBA1C is in uncontrollable state. I have taken home loan of 1.5 Cr and Also have invested in commercial property worth Rs. 1 Cr. I feel worried and guilt as I did not bought term Insurance when I was healthy and fit. Now I fear if something happens to me whether the corpus will be sufficient for my wife to survive in a respectable position? She already have rental income of Rs. 40K PM apart from 20K PM other income, Also my PF,Gratuity and NPS might be used for pay-off the O/s Loan. Now none of the Insurance company is accepting my policy. I dont want to go with keeping my wife in vulnerable Position. My only son is Studying abroad and not yet fully settled. I don't have any bad habit like smoking, Alcohol or any other. I have no clue how can I restore my position? I am very positive towards my life and other challenges in my life but recently My elder brother expired at 57 due to same illness So I m very much tensed. Can you guide me?

Ans: Assessing Your Current Financial Situation

Hello Jitendra,

I understand your concerns regarding your health and financial well-being, especially given your high diabetic condition and recent family loss. You've achieved a lot professionally, and it's commendable how you're taking proactive steps to secure your family's future.

Analyzing Assets and Liabilities

Firstly, let's evaluate your assets and liabilities. You have a significant home loan and a commercial property investment. Your wife has rental income and other earnings, which is a positive aspect. However, your outstanding loan needs attention.

Your prudent decision to not engage in habits like smoking or alcohol is commendable and can positively impact your health and financial stability.

Assessing Insurance Needs

Given your health condition, obtaining term insurance might be challenging. However, we can explore other options to protect your family financially. We'll consider leveraging your existing assets, such as PF, Gratuity, and NPS, to manage the loan and ensure financial stability for your wife.

Exploring Alternative Investment Strategies

While real estate isn't recommended due to its illiquidity, we can explore other investment avenues that align with your risk profile and financial goals. As a Certified Financial Planner, I suggest considering a diversified portfolio of mutual funds, considering your risk appetite and investment horizon.

Planning for Your Son's Future

Your son's education and settlement abroad are crucial considerations. We can devise a strategy to ensure his financial needs are met without compromising your retirement plans or your wife's financial security.

Mitigating Risks

Given your health concerns, it's essential to have a contingency plan in place. We'll explore options to create an emergency fund and optimize existing resources to cover medical expenses and other unforeseen circumstances.

Maintaining Positive Outlook

Despite the challenges you're facing, maintaining a positive attitude is admirable. Together, we'll work towards restoring your financial position and ensuring peace of mind for you and your family.

Jitendra, your proactive approach to seeking guidance demonstrates your commitment to securing your family's future. Rest assured, with careful planning and strategic financial management, we'll navigate through these challenges successfully.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 16, 2024Hindi

Money

Hello Sir, I am earning 125000 per month. I have SIP of 25000 per month, one PPF account yearly 150000, one Sukanya investment of 150000 yearly, What are other safe ways to invest next 15 years and get better retirement.

Ans: Crafting Your Retirement Investment Strategy
Congratulations on your commitment to financial planning! Let's explore additional avenues to bolster your retirement savings and secure your financial future.

Assessing Your Current Investments
You've laid a solid foundation with SIPs, PPF, and Sukanya investments. Now, let's diversify your portfolio further for long-term growth and stability.

Exploring Safe Investment Options
Given your risk-averse approach, we'll focus on low-risk investment avenues that offer steady returns over the next 15 years.

Debt Instruments
Consider investing in debt instruments such as government bonds, corporate bonds, or debt mutual funds. These options provide stable returns with lower volatility, making them ideal for risk-averse investors like yourself.

Retirement Funds
Explore retirement-focused mutual funds designed to help investors accumulate wealth for retirement. These funds typically have a mix of equity and debt instruments tailored to suit varying risk profiles and investment horizons.

Systematic Investment Plans (SIPs)
Continue allocating a portion of your monthly income to SIPs, but consider diversifying across different asset classes for added stability and growth potential.

Regular Funds Investing through a Certified Financial Planner
Investing in regular funds through a Certified Financial Planner (CFP) offers several benefits. A CFP provides personalized advice, portfolio management, and regular reviews to ensure your investments are aligned with your goals and risk tolerance. With a CFP's guidance, you can navigate market uncertainties and optimize your investment strategy for better returns.

Emphasizing Long-term Growth
Focus on long-term wealth accumulation rather than short-term gains. By staying invested and periodically reviewing your portfolio, you can capitalize on market opportunities while mitigating risks.

Conclusion
Sandeep, by diversifying your investment portfolio with a mix of debt instruments, retirement funds, and continued SIPs, you can strengthen your retirement savings and achieve financial independence. Partnering with a Certified Financial Planner ensures that your investment strategy is tailored to your needs and goals, providing you with peace of mind as you plan for the future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |2821 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 16, 2024Hindi

Money

Hi sir, I am going to retire at 40. I.e, this year. I will have 55 lac retirement benefits. I don't have any knowledge of mutual fund or sip. My monthly pension wud be 36000. So I planned to put 30 lac in Senior citizen savings scheme to get 20500/-. What and where should I invest rest 25 lac to get better than FD/ kvp. I don't want to take risk on lifetime achieved fund.

Ans: Crafting Your Retirement Investment Strategy
Retiring at 40 is a significant milestone, and it's essential to make prudent investment decisions to safeguard your retirement corpus and ensure financial stability. Let's explore tailored investment options that align with your risk tolerance and financial goals.

Maximizing Returns on Retirement Benefits
Congratulations on your retirement! With retirement benefits of 55 lakhs and a monthly pension of 36,000, you're off to a good start. Maximizing returns on your retirement benefits is crucial for long-term financial security.

Senior Citizen Savings Scheme (SCSS)
Investing 30 lakhs in the Senior Citizen Savings Scheme to earn a monthly income of 20,500 is a conservative yet effective choice. SCSS offers guaranteed returns and capital protection, making it suitable for risk-averse investors like yourself.

Exploring Investment Options for the Remaining 25 Lakhs
Now, let's focus on the remaining 25 lakhs and explore investment avenues that offer better returns than FDs or KVPs without compromising your risk tolerance.

Fixed Income Investments
Consider allocating a portion of the remaining corpus to fixed income investments such as corporate bonds, debentures, or high-quality debt mutual funds. These options provide stable returns with relatively lower risk compared to equities.

Systematic Withdrawal Plans (SWP)
Another option is to invest in mutual funds with a SWP facility. SWP allows you to systematically withdraw a predetermined amount from your investment at regular intervals. Opt for debt-oriented balanced funds or conservative hybrid funds to minimize risk while aiming for better returns.

Regular Funds Investing through a Certified Financial Planner
Investing in regular funds through a Certified Financial Planner (CFP) offers several benefits. A CFP provides personalized advice, portfolio management, and regular reviews to ensure your investments are aligned with your goals and risk tolerance. With a CFP's guidance, you can navigate market uncertainties and optimize your investment strategy for better returns.

Ensuring Financial Stability in Retirement
Retiring at a young age requires careful planning to ensure financial stability throughout your retirement years. By diversifying your investment portfolio, minimizing risk, and seeking expert guidance, you can build a robust financial foundation that supports your lifestyle and aspirations.

Conclusion
Sandeep, retiring at 40 is a remarkable achievement, and it's essential to make wise investment decisions to preserve and grow your retirement corpus. By investing in a combination of conservative options like the Senior Citizen Savings Scheme and exploring alternative avenues for the remaining corpus, you can achieve your financial goals while safeguarding your lifetime achievements.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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