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

What to invest 95 lacs in retirement? 45 YO with no liabilities, retiring soon.

Milind

Milind Vadjikar  |710 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 07, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Nov 06, 2024Hindi
Listen
Money

I am a 45 year old IT professional with 30 lacs in PPF (maturing in March 2025), 30 lacs in EPF, 30 lacs in FD (mostly maturing in 1-2 years time), 10 lacs in NPS. Currently, I have no liabilities and no loans. I am staying in my own house. My monthly expenditure is around 50k and additionally, NPS requires 12.5k monthly investment. I am planning to retire in next 1-2 years. Pls suggest following: 1. Best way to invest above mentioned amount and 2. I have gold worth 25 lacs, so should I keep it with me or sell it and invest that money elsewhere. Thanks

Ans: Hello;

Your corpus as on today:

1. PPF: 0.3 Cr
2. EPF: 0.3 Cr
3. FD: 0.3 Cr
4. Gold: 0.25 Cr

Net Total: 1.15 Cr.
Manage to get 0.05 Cr(5 L) to make a lumpsum corpus of 1.2 Cr.

You may buy an immediate annuity from a life insurance company for your corpus which may yield you a monthly payout of around 60 K(pre-tax).

This will cover regular monthly expenses but hardly any surplus available for healthcare, life insurance premia, NPS contribution.

See if you can postpone retirement by 5-7 years.

If you do a monthly sip of @ 80 K (in hybrid mutual funds)for 7 years then you may accumulate another 1 Cr +NPS for your retirement kitty.

Best wishes;
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  |7163 Answers  |Ask -

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

Asked by Anonymous - Jun 15, 2024Hindi
Money
Hello, I am Avinash 40 year old IT professional and wishes to retire in next 5-10 years. I do have 38 lakh MF investments, I stay in own house on bangalore. I do not have any liabilities. I have 45 lakh worth EPS and 20 lakh worth PPF. Invested in NPS both tier 1 and 2 for 5 lakh each. I do have SGB worth 6 lakh. But I do have 50 lakh amount invested in FD. I want to invest some amount to invest to other asset class may be equity. I want to retire with corpus of 4 cr and my monthly expenditure in 50k. Pls guide.
Ans: Dear Avinash,

Thank you for reaching out and sharing your financial details and retirement goals. It’s impressive that you have planned your finances well and have a clear vision for your future. Let’s analyze your current situation and chart a strategic path towards achieving your retirement corpus of Rs 4 crore, while also ensuring a smooth retirement with monthly expenses of Rs 50,000.

Understanding Your Current Financial Landscape
You have diversified your investments across various asset classes, which is commendable. Let's break down your current financial standing:

Mutual Funds: Rs 38 lakh
EPS: Rs 45 lakh
PPF: Rs 20 lakh
NPS: Rs 10 lakh (5 lakh each in Tier 1 and 2)
Sovereign Gold Bonds (SGB): Rs 6 lakh
Fixed Deposits (FDs): Rs 50 lakh
Your total current investments amount to Rs 169 lakh (1.69 crore). You have no liabilities, which is a strong position to be in.

Evaluating Your Investment Portfolio
Mutual Funds
Your Rs 38 lakh investment in mutual funds is a solid foundation. Given your retirement timeline of 5-10 years, it’s crucial to ensure your mutual funds are aligned with your risk tolerance and retirement goals. Active management of these funds can offer potential benefits over index funds. Actively managed funds, run by experienced fund managers, can adapt to market conditions and potentially outperform benchmarks. This flexibility can be advantageous in achieving higher returns, essential for meeting your retirement target.

EPS and PPF
Your EPS of Rs 45 lakh and PPF of Rs 20 lakh are stable, low-risk investments providing security and tax benefits. However, they may not offer the high returns needed to reach your Rs 4 crore goal. The PPF, with its assured returns and tax benefits, should continue to be part of your portfolio, but relying solely on these for growth could be limiting.

NPS
The NPS is another excellent retirement tool, offering a mix of equity and debt exposure. Given your contributions, it’s vital to ensure that the asset allocation within your NPS is optimal. Typically, the equity portion of NPS can offer higher returns compared to its debt counterpart, but it's essential to balance it according to your risk tolerance.

Sovereign Gold Bonds
Your Rs 6 lakh investment in SGBs is a good hedge against inflation and market volatility. However, gold typically offers moderate returns compared to equities and should be a part of a diversified portfolio rather than a core growth driver.

Fixed Deposits
You have Rs 50 lakh in fixed deposits, which are safe but offer lower returns compared to other investment avenues like equities or actively managed mutual funds. To achieve your retirement goal, it might be beneficial to redirect a portion of these funds into higher-yielding investments.

Strategic Recommendations for Achieving Rs 4 Crore
Diversify into Equity Mutual Funds
Given your Rs 50 lakh in FDs, consider reallocating a significant portion to equity mutual funds. Equity mutual funds, especially actively managed ones, have the potential to provide higher returns over the long term. While FDs offer safety, the low returns may not suffice to reach your Rs 4 crore target. Actively managed equity mutual funds, with professional fund managers, can navigate market complexities better and aim for higher growth.

Optimize Your NPS Allocation
Review and possibly adjust your NPS Tier 1 and Tier 2 allocations to ensure a higher equity component. This can enhance the growth potential of your NPS contributions. Given the tax benefits and long-term growth prospects of NPS, a higher equity allocation can significantly impact your retirement corpus positively.

Regular Review and Rebalancing
Periodic review and rebalancing of your portfolio are essential. Market conditions change, and so should your investment strategy. By regularly assessing your portfolio, you can ensure it remains aligned with your goals and risk tolerance. This proactive approach can help in mitigating risks and capitalizing on growth opportunities.

Consider Systematic Investment Plans (SIPs)
Systematic Investment Plans (SIPs) in equity mutual funds can be an excellent way to enter the market gradually, reducing the impact of market volatility. With Rs 50 lakh in FDs, you can systematically transfer a portion into SIPs. This disciplined approach can harness the power of compounding and rupee cost averaging, enhancing your portfolio’s growth potential.

Emergency Fund Allocation
Ensure that a part of your FDs or a separate liquid fund acts as an emergency fund. This fund should cover at least 6-12 months of your monthly expenses. Having a robust emergency fund ensures that you do not have to dip into your retirement corpus for unexpected expenses, maintaining the integrity of your long-term financial plans.

Addressing Potential Concerns and Misconceptions
Disadvantages of Index Funds
While index funds are often lauded for their low costs and simplicity, they lack the flexibility of actively managed funds. Index funds are designed to match market returns, not exceed them. In a volatile market, actively managed funds have the advantage of making strategic moves to potentially outperform the index. Therefore, in your case, actively managed equity funds might be a better choice to achieve your ambitious retirement goal.

Disadvantages of Direct Funds
Direct mutual funds, while having lower expense ratios, require a good understanding of the market and regular monitoring. Investing through a Certified Financial Planner (CFP) can provide professional expertise and guidance. A CFP can help in selecting the right funds, regular monitoring, and making necessary adjustments based on market conditions and your changing financial goals. The added value of professional advice often outweighs the cost difference between direct and regular funds.

Ensuring a Comfortable Retirement
Monthly Withdrawal Strategy
Post-retirement, it’s crucial to have a systematic withdrawal strategy to manage your Rs 50,000 monthly expenses without depleting your corpus prematurely. An SWP (Systematic Withdrawal Plan) in mutual funds can provide a regular income stream while keeping your corpus invested and growing. This strategy can ensure a steady cash flow while your investments continue to appreciate.

Inflation and Tax Considerations
Your retirement plan should factor in inflation and taxes. The Rs 50,000 monthly expense today will increase over time due to inflation. Therefore, your investments should grow at a rate higher than inflation. Additionally, tax-efficient investment strategies can help in maximizing your returns. For instance, long-term capital gains on equity mutual funds are taxed favorably compared to interest income from FDs.

Healthcare and Insurance
Ensure you have adequate health insurance coverage. Medical expenses can significantly impact your retirement corpus. A comprehensive health insurance policy can safeguard your investments. Additionally, if you hold any investment-cum-insurance policies like LIC or ULIPs, consider surrendering them and reinvesting the proceeds into mutual funds. These policies often offer lower returns and higher costs compared to pure investment options.

Final Insights
Achieving your goal of a Rs 4 crore retirement corpus is ambitious yet achievable with strategic planning and disciplined investing. By diversifying your portfolio into actively managed equity mutual funds, optimizing your NPS allocation, and systematically transferring funds from low-yield FDs, you can enhance your portfolio's growth potential. Regular reviews and professional guidance from a Certified Financial Planner can further align your investments with your retirement goals.

Remember, retirement planning is not just about accumulating a corpus but also ensuring a steady, inflation-adjusted income post-retirement. By following a strategic approach and making informed decisions, you can look forward to a comfortable and financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Asked by Anonymous - Jun 19, 2024Hindi
Money
I am 39 years old IT employee , I have monthly income of 3.5 lakhs and have a 10 years old son and wife .I have 35 lakhs in PF and 8 lakhs in ppf ,All I invested is in real estate and no other investments also i have 48 lakhs lakh an remaining for a house ,Where should I invest of I need to lan retirement by 50 will need 1.5 lakhs income per month post that
Ans: Retiring by age 50 with a steady monthly income of Rs. 1.5 lakhs is a significant goal. Given your current assets, it's crucial to strategically plan your investments to achieve this target. You have a strong base, and with careful planning, you can reach your retirement goals.

Assessing Current Financial Situation
You have a solid monthly income of Rs. 3.5 lakhs. This is a good start.

You have Rs. 35 lakhs in your Provident Fund (PF) and Rs. 8 lakhs in your Public Provident Fund (PPF). These are excellent long-term savings.

You have invested Rs. 48 lakhs in real estate. However, real estate alone may not be enough for retirement. Diversifying your portfolio is crucial.

Understanding the Importance of Diversification
Diversification is key to minimizing risk and maximizing returns. Currently, your investments are concentrated in real estate. You should consider diversifying into different asset classes.

Building a Balanced Investment Portfolio
1. Equity Mutual Funds:

Equity mutual funds can provide high returns over the long term. They are suitable for your retirement goal, which is more than a decade away.

Consider allocating a portion of your funds to diversified equity mutual funds. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, providing a balanced exposure to the equity market.

2. Debt Mutual Funds:

Debt mutual funds are less risky compared to equity funds. They provide stable returns and can be used to balance the risk in your portfolio.

Investing in debt funds will ensure that a portion of your investments remains safe, while still earning moderate returns.

3. Public Provident Fund (PPF):

Your current PPF investment is Rs. 8 lakhs. Continue contributing to PPF as it offers tax benefits and guaranteed returns. It’s a safe investment for long-term financial goals.

4. Provident Fund (PF):

With Rs. 35 lakhs in PF, you already have a significant amount saved. Ensure you continue contributing to this fund, as it provides a reliable source of retirement income.

Exploring the Benefits of Actively Managed Funds
Actively managed funds, run by experienced fund managers, can potentially outperform the market. These funds require active monitoring and adjustment, which can lead to better returns compared to passive index funds.

Disadvantages of Index Funds:

Index funds follow the market index, and they do not aim to outperform it. This means during market downturns, index funds will also suffer. They lack the flexibility to adjust holdings based on market conditions.

Benefits of Actively Managed Funds:

Actively managed funds have the potential to generate higher returns. Fund managers can make strategic decisions based on market trends and economic conditions. They can also provide a more tailored investment approach.

Considering the Role of Certified Financial Planners
Investing through a Certified Financial Planner (CFP) can offer several advantages. They provide personalized advice and help create a financial plan tailored to your goals.

Disadvantages of Direct Funds:

Investing directly without professional guidance can be risky. You might miss out on strategic opportunities and fail to manage risk effectively. A CFP can help optimize your investment strategy.

Benefits of Regular Funds through CFP:

Investing through regular funds with the help of a CFP ensures you receive expert advice. They can help you navigate market complexities and make informed decisions. This professional guidance can lead to better financial outcomes.

Creating a Retirement Corpus
To achieve your retirement goal of Rs. 1.5 lakhs monthly income post-retirement, you need to build a substantial corpus. Given your current assets and income, a disciplined investment approach is essential.

1. Setting Clear Goals:

Define how much you need at retirement. This will help you understand how much to save and invest each month.

2. Regular Investments:

Invest regularly in mutual funds through Systematic Investment Plans (SIPs). SIPs help in averaging out market volatility and build a corpus over time.

3. Reviewing and Rebalancing:

Regularly review your investment portfolio. Rebalance it to ensure it aligns with your goals and risk tolerance. This involves shifting funds between asset classes based on market performance and your investment horizon.

Importance of Emergency Fund
Maintain an emergency fund to cover unforeseen expenses. This fund should cover at least six months' worth of expenses. It ensures you don't have to dip into your long-term investments in case of emergencies.

Managing Insurance Needs
Ensure you have adequate insurance coverage. Life insurance protects your family in case of any unfortunate event. Health insurance covers medical expenses, preventing financial strain.

Planning for Your Child's Future
Your 10-year-old son's education and future needs should also be planned for. Consider investing in child-specific mutual funds or creating a dedicated investment plan for his higher education and other needs.

Evaluating Current Investments
Real Estate:

While real estate can provide good returns, it's not very liquid. Consider the rental income potential and capital appreciation of your property.

Provident Fund (PF) and Public Provident Fund (PPF):

These are secure investments with tax benefits. Continue contributing to these funds for long-term stability.

Achieving Financial Independence
To achieve financial independence by 50, you need a comprehensive financial plan. This involves:

1. Increasing Savings:

Try to save and invest a significant portion of your income. Aim to save at least 30-40% of your monthly income.

2. Reducing Debt:

Avoid taking on new debt. Pay off any existing loans to reduce financial burden.

3. Enhancing Income:

Explore ways to increase your income. This could be through promotions, bonuses, or side gigs.

Final Insights
Reaching your retirement goal by 50 is achievable with disciplined planning and strategic investments. Diversify your portfolio, invest in equity and debt mutual funds, and continue contributing to PF and PPF. Seek guidance from a Certified Financial Planner to optimize your investments and ensure a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

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

Listen
Money
Hi sir, My age is 50 . I have around 35 lacs in Mutual funds and in stocks approx at 50:50 ratio . My stocks are not appreciating well as compared to mutual funds . As I am not able to keep myself updated in stocks as having my busy schedule from 9:00am to 8:00pm. Besides this I have a saving of 30 lacs in PF and PPF . Besides this I had some savings in postal fixed deposit which is going to be matured in next 4 months and the matured amount is around 60 lacs . I wanted to invest this amount in some mutual funds or with some savings instrument having an appreciation of approx 13-15 % .Pls guide me how should I invest this fund ? If you suggest for mutual fund , then pls suggest the fund types , and should I invest in lumpsum or SIP. If I am going for SIP. , then in how many months or weeks should I invest this total fD matured amount ? I am at present working in a private company with a monthly in-hand salary of 1.5 lacs .and I have no liability for next 8-9 years .
Ans: Current Financial Situation
At age 50, you have Rs. 35 lakhs in mutual funds and stocks, split evenly. Your stocks are not performing well. Your busy schedule from 9:00 am to 8:00 pm makes it hard to manage your stocks.

You also have Rs. 30 lakhs in PF and PPF, and Rs. 60 lakhs in a postal fixed deposit maturing in four months.

Your monthly in-hand salary is Rs. 1.5 lakhs, and you have no liabilities for the next 8-9 years.

Investment Goals
You aim to invest the Rs. 60 lakhs maturing from the fixed deposit. You seek an appreciation of 13-15% per annum.

Assessment of Current Strategy
Mutual Funds vs. Stocks
Your mutual funds are performing better than your stocks. Mutual funds are managed by professionals, offering better returns for those with limited time.

Existing Investments
Your PF and PPF provide stability and tax benefits. These are good for long-term security but offer lower returns compared to equity investments.

Recommendations for Improvement
Increase Mutual Fund Investments
Given your busy schedule, mutual funds are a better option than direct stocks. They are professionally managed and require less personal attention.

Types of Mutual Funds
Equity Mutual Funds: These funds have the potential for higher returns, aligning with your goal of 13-15% appreciation.
Actively Managed Funds: These funds can outperform index funds due to active management by professionals.
Investment Strategy
SIP vs. Lumpsum: Investing in mutual funds via SIPs helps mitigate market volatility. It averages the purchase cost over time.
Investment Period: Consider spreading the Rs. 60 lakhs investment over 12-18 months through SIPs. This approach reduces the risk of market timing.
Diversify Your Portfolio
Diversification: Invest in different types of equity mutual funds. This includes large-cap, mid-cap, and small-cap funds. Diversification reduces risk and can provide better returns.
Review and Adjust Regularly
Portfolio Review: Regularly review your investments. Adjust your portfolio based on performance and changes in your financial goals.
Consult a CFP: A Certified Financial Planner can help tailor your investment strategy to meet your specific goals and risk tolerance.
Final Insights
Your current investment strategy is good but can be improved. Shift your focus from direct stocks to mutual funds for better management and returns.

Invest the Rs. 60 lakhs from the maturing fixed deposit in equity mutual funds through SIPs over 12-18 months. This approach will help you achieve your target returns while reducing risk.

Ensure regular reviews and adjustments to your portfolio. Diversify your investments to manage risk effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Nitin

Nitin Narkhede  |36 Answers  |Ask -

MF, PF Expert - Answered on Nov 07, 2024

Asked by Anonymous - Nov 04, 2024Hindi
Listen
Money
I am a 45 year old IT professional with following saving/investment as of now: 30 lacs: EPF 30 lacs: PPF 30 lacs: FD 10 lacs: NPS NOTE: 1. I have monthly expenditure of 50k 2. Additionally, NPS requires 12k monthly investment 3. No liabilities and no loan 4. Staying in own house. Queries: 1. I am planning to retire in next 1-2 years. Pls suggest best way to invest above money. 2. Also, I have gold of worth 25 lacs, so should I keep that with me or instead sell it now and invest money elsewhere?
Ans: Dear Friend,
At 45, retiring at 2 years is 47, with an expense of 50K per month plus 12K per month NPS needs 62K per month. Considering a life expectancy of 77, you need funds for the next 30 years. Not considering medical or any other emergency expenses, you also need 2.25 cr in expenses in the next 30 years. Hence, you can consider rearranging the finances as below.
PPF (?30 Lakhs Total): Continue these as they offer tax-free, secure returns. During retirement, you can withdraw in tranches to maintain liquidity. Keep it as you find financial security; do not touch it, and let it grow.
As you declare retirement at 47, you have EPF (?30 Lakhs Total) and Fixed Deposit (?30 Lakhs). You can withdraw this amount and invest it in Balanced or index MF funds, which offer yearly 12% to 14% average returns. You can also start SWP from this.
NPS is a good retirement investment, but there are many restrictions on premature withdrawals. If you retire at 47, you will not get a withdrawal until age 60 for 60% of the amount, and the balance 40% will be converted to pension after age 60. You can withdraw 60% of the amount from the balance 6 years older for premature withdrawal. If your finances permit, continue investing after retirement.
Gold can be a good hedge against inflation. Gold returns an average of 8 to 10% return on an average. However, if you don't have an emotional attachment or strategic reason to hold it, consider selling and reinvesting in diversified assets like balanced mutual funds or a senior citizen savings scheme for higher returns.
Overall, at 47, you need about 1 cr in your MF for expenses after retirement with 50K PM.
With the amount you have mentioned, you can live a decent life without any frills. My suggestion is that you increase your corpus to fulfill all your life's needs other than your monthly expenses.
Regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

..Read more

Latest Questions
Nayagam P

Nayagam P P  |3935 Answers  |Ask -

Career Counsellor - Answered on Nov 27, 2024

Ramalingam

Ramalingam Kalirajan  |7163 Answers  |Ask -

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

Asked by Anonymous - Nov 27, 2024Hindi
Listen
Money
Hi, sir I am a an 30 year old (single) engineer working with a MNC in Chennai, unfortunately till this day i haven't had any savings at all for my future (retirement, other short term or long term goals). Currently my take home salary after EPF and parental insurance is 53k ( EPF is about 4900/month - employee+employer) i haven't opted for Corporate NPS but is provided by the company without any additional contribution from company. I have company health insurance policy and have planned to take my own health insurance and term insurance plan. Adding to above I have zero emergency fund with me. How should I proceed with my investments?
Ans: You have taken the first step by recognising the need to plan. It’s essential to appreciate your intention to secure your financial future. Let’s look at how you can proceed to achieve your short-term and long-term goals.

Your current take-home salary is Rs 53,000, and your EPF contribution is Rs 4,900. However, you lack savings, investments, and an emergency fund. Here's a step-by-step strategy:

Build an Emergency Fund
Set aside funds to cover at least six months' expenses.

Start by saving 10-15% of your salary monthly into a high-interest savings account.

Use Recurring Deposits or Liquid Mutual Funds to maintain this fund for emergencies.

Secure Yourself with Insurance
Health insurance: Maintain your company health policy but add a personal health policy. Choose a policy offering a sum insured of Rs 10-15 lakh.

Term insurance: Buy a term plan covering 10-15 times your annual income. Keep the policy simple and avoid investment-linked insurance.

Budget Your Income
Allocate your income carefully for expenses, savings, and investments.

Use the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and investments.

Avoid unnecessary expenses to increase your saving capacity.

Start Investing Gradually
Short-term goals (1-5 years): Invest in debt funds or recurring deposits. Debt mutual funds are good for stable returns.

Long-term goals (5+ years): Invest in equity mutual funds for higher returns. Choose actively managed funds with consistent performance.

Avoid index funds. Actively managed funds have a better potential for higher returns through professional fund management.

Retirement Planning
Utilise the EPF for retirement. Your current contribution will grow over time with compounding.

Consider investing in diversified equity mutual funds for additional retirement savings.

Corporate NPS: You can explore NPS for its tax-saving benefits. However, don’t rely solely on it for retirement.

Tax-Saving Investments
Use Section 80C to save taxes up to Rs 1.5 lakh.

EPF, PPF, ELSS mutual funds, and life insurance premiums can qualify under this section.

Opt for ELSS funds for tax saving and wealth creation.

Review Existing Expenses
Evaluate and minimise unnecessary expenditures.

Avoid loans for discretionary spending like vacations or gadgets.

Advantages of Using a Certified Financial Planner
A CFP can help you plan holistically and ensure you stick to your goals.

They provide tailored strategies, ensuring proper fund allocation and monitoring.

Invest through a Mutual Fund Distributor with CFP credentials to access professional advice.

Key Steps for Discipline
Automate investments through SIPs in mutual funds.

Track your monthly budget and investment progress regularly.

Avoid direct funds. Regular funds offer professional guidance and fund distributor support.

Tax Implications
For equity mutual funds, LTCG above Rs 1.25 lakh attracts 12.5% tax.

STCG on equity funds is taxed at 20%.

Debt fund gains are taxed as per your income slab. Consider these while investing.

Final Insights
You are in the right direction by seeking advice now. Build a solid foundation with savings, insurance, and investments. Take small steps toward financial independence.

Remain consistent with your investments, and review your financial plan annually.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Mayank

Mayank Chandel  |1940 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Nov 27, 2024

Listen
Career
Hello, i really have a serious issue regarding my studies as i am 24 yrs now and gave NEET 4times and i am still preparing for nxt year 2025 but at the back of my mind i am really tensed what if the same thing repeats in the neet 2025 also like paper leak and all, So now i am confused that should i take a full drop or partial drop. The mental pressure is really hitting hard and also its almost been 4years that i am still 12th pass only and my classmates have already completed their college and some are flight attendant and earning well, So this all things just hits so hard and also the hope in parents eyes as my father is already proud that i studied science so i would definitely become doctor. I wasted a lot of money in pg and coaching (fastrack) and this all things are hitting so hard that i really feel sad and have no ways to go.
Ans: Hi Bhima
I must say you have got perseverance & I appreciate your parent's trust in you. You have already appeared multiple times and you are going to appear again in 2025. By the time you will be 25 years old. They say there is no age to learn. But after getting admission you need another 10 years to practice as a qualified specialist. Make sure you take admission in the next session.

If higher cutoff & high fees of private colleges are an issue for you, then try exploring the MBBS abroad option, I can help with that too. Since NEXT is compulsory for Indian & Foreign graduates too it won't make a difference if you study in India or Abroad.

For time forget all the societal pressure and give your 100% and make your parents proud.

...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