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Should I sell my flat in a Tier 1 city before moving to a Tier 2 city?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 18, 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 - Sep 17, 2024Hindi
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Hi , I am 45 yr old, two daughters aged 13,10. My asset are a flat worth 1.75 cr, stocks ,85lacs, PPF- 20lacs, PF 40 lacs, MF -5 lacs, and my has a investment of 15 lacs in equity and 10 lacs in MF. We own two parcels of land worth 75 lacs. We don't have any loans and we take home 3.75 lacs. I am moving to tier 2 city, and moving to a rental property. My flat is 20 yr old and it has reached its full value depending on the area. I want to sell my flat and invest the proceedings into MF for a period of 4-5 yrs before buying a house in tier 2 city. Is it advisable to sell it. The flat is tier 1 city and I don't live inthat city

Ans: I propose that you estimate the long term(assumed) capital gain tax liability that may arise after sale of this flat considering indexation or without indexation as is optimal for you. Next consider the future redevelopment potential in the tier-1 city particularly in the area where you have the flat. Another point to be borne in mind is if your daughters need to move to tier-1 city in future for better coaching, education, prospects then this aspect needs to be considered. If you still want to sell the flat then time it in such a way when you want to buy new residential property in tier2 city because you can utilise all your gains here without paying any capital gain tax(Section 54 of Income tax act allows exemption subject to conditions) and/or buying section 54 EC Capital Gain bonds to save LTCG payment(50L per FY limit & 6 months within sale of property subject to eligibility).

Unless you have strong knowledge of markets or an investment advisor to assist you, I would recommend you to redeem your(family) stock holdings(subject to high volatility and needs regular monitoring) of 85L+15L and invest it in a staggered manner into equity savings and value focussed balanced advantage fund for horizon of 4-5 years.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

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Happy Investing!!
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  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2025

Asked by Anonymous - Jul 04, 2025Hindi
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Hello Sir, I am from Karnataka living in tier 3 coastal city , I am 52 yrs male, a freelancer having on average 15 to 20 lakhs income per year. Other than 2 residential flats which and 2 commercial property which yield income around 55k. I have 1 agriculture property , and a residential property which yield no income . I have some enquiry for agriculture land and i am in dilemma whether to sell it and invest money in PF and some commercial property which can yield some income for my future increasing expenses . Or i should sell other residential land and flats (12 years old) . I have a home without loan where i live. I have a SIP of 15000 pm and current MF portfolio of 24 lakhs. Kindly advice,Thanks in advance.
Ans: ? Your Financial Profile Overview

– You are 52 years old, living in a tier-3 city in Karnataka.
– Your average yearly income is Rs 15 to 20 lakhs.
– You are a freelancer, so income may not be fixed.
– You own two residential and two commercial properties.
– The total rental income is around Rs 55,000 per month.
– You have one house for living with no loan burden.
– You also own one agriculture property and one unused residential plot.
– Your SIP is Rs 15,000 per month.
– You have Rs 24 lakhs invested in mutual funds.

– You have shown excellent discipline in real estate and mutual fund investments.
– You are thinking about future income and rising expenses.
– You also want to consider which property to sell for better returns.

? Identify What You Really Need Now

– At age 52, the priority is income stability after retirement.
– You may not want to depend fully on freelancing after 60.
– You need regular income, low risk, and liquidity.
– Capital growth alone is not enough anymore.
– Income generation and capital protection are now equally important.

? Evaluate All Properties from Income and Risk View

– Let us focus on each asset separately:

– Agriculture Land:

Not giving any income now.

Liquidity depends on demand in your area.

Cannot develop easily or lease to businesses.

If you have buyers now, it may be a good time to sell.

– Residential Flats (12 years old):

May have higher maintenance cost going forward.

Rental yields are usually very low in tier-3 cities.

Occupancy risk is also high.

If appreciation is slow, think about selling at a fair price.

– Commercial Properties:

Giving Rs 55,000 rental income.

This is a good passive income source.

Commercial rents are usually better than residential.

Continue holding them unless repair cost becomes high.

– Vacant Residential Land:

Not generating income.

Capital appreciation depends on location and demand.

Selling it may free up idle capital.

? Don’t Add More Real Estate Now

– Avoid buying more commercial property now.
– Real estate has very low liquidity.
– You can’t sell quickly when needed.
– It has high stamp duty and maintenance costs.
– Property management can become a burden in older age.
– Your portfolio is already heavy in real estate.

– Instead of more real estate, build liquid income assets.
– That gives peace, flexibility, and access during health or family needs.

? Use Proceeds for Retirement-Ready Investments

– Sell the agriculture land or one residential flat.
– Choose the one with better sale value and market demand.
– Avoid distress sale. Wait for decent price.
– Use the funds for structured investments.

– Split the proceeds like this:

50% in hybrid or debt mutual funds for monthly income.

30% in equity mutual funds for long-term growth.

20% in short-term debt or liquid funds for flexibility.

– Keep SIP of Rs 15,000 running.
– Increase to Rs 20,000 if possible from rental or freelance income.
– This will grow your Rs 24 lakhs MF portfolio steadily.

? Why Mutual Funds Offer Better Control Than Real Estate

– Mutual funds are liquid.
– You can redeem in parts as per need.
– They don’t need maintenance or documentation work.
– You can start small and build up monthly.

– Equity mutual funds are suitable for long-term inflation-beating growth.
– Hybrid and debt funds can give regular income with less risk.
– Choose actively managed mutual funds for better returns.

– Avoid index funds.
– They blindly copy the market.
– They include weak and loss-making companies.
– They don’t protect you during market fall.

? Don’t Choose Direct Mutual Funds

– Direct mutual funds don’t offer guidance or tracking.
– You may miss out on performance review.
– Emotional selling in panic can reduce returns.
– Instead use regular mutual funds via MFD with CFP.
– This gives you proper support, review, and fund selection.

? Plan for Post-60 Income

– Build a monthly income plan for post-retirement.
– Aim for at least Rs 60,000 to Rs 75,000 monthly income from investments.
– That includes SIP corpus, rentals, and freelancing if you continue.

– Shift some corpus to income-generating mutual funds from age 58–60.
– Plan withdrawals smartly. Don’t take out lump sums.
– Use SWP (systematic withdrawal plan) after 60 to get fixed monthly cash.

– For equity mutual funds:

Gains above Rs 1.25 lakh taxed at 12.5%.

Less than 1-year holding taxed at 20%.

– For debt funds:

Taxed as per income slab.

You can plan redemptions to reduce tax.

? Stay Away from Real Estate for Retirement

– After age 60, real estate becomes stressful.
– Rentals can stop due to tenant issues.
– Property may remain vacant for long.
– Selling after retirement becomes harder.
– Government rules also keep changing.

– Mutual funds give better peace and access.
– Regular review gives better control.

? Protect Against Health and Life Risks

– You already have term insurance and health insurance.
– Check if coverage is enough.
– Health cover must be minimum Rs 10 to Rs 15 lakhs.
– Upgrade to super top-up if base cover is low.

– Term insurance can be reduced or stopped after 60.
– But health cover must continue lifelong.

– Keep emergency fund of Rs 3 to Rs 5 lakhs separately.
– Don’t touch it for investing.

? Plan for Your Spouse and Family

– If married, ensure your spouse understands the plan.
– Include her name in bank, MF, and nominee documents.
– Make a simple will to avoid confusion.

– Avoid holding land or real estate jointly unless very necessary.
– Paperwork becomes messy later.

? Finally

– You are in a strong position at age 52.
– Good mix of assets and no loan burden.
– But too much in real estate can hurt flexibility.

– Sell one non-performing asset like agri land or residential flat.
– Don’t buy more property.
– Use money for mutual funds that give income and growth.
– Focus on stable income, not risky appreciation.

– Stay consistent in SIPs.
– Review portfolio once every year with a CFP.
– Avoid reacting to market ups and downs.

– This balanced approach will give you a peaceful retirement.
– And better control of money even after 70.

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

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 11, 2025

Money
My age is 51 years. I have a 22 years old flat in Pune. Currently receiving 30000 Rs rent. I am leaving in a another flat. There is no any ongoing loan. Shall I sale the flat as I have an offer of Rs 1.2 cr. and invest that amount elsewhere.
Ans: Thinking ahead shows financial maturity.

Wanting to optimise property value is a smart move.

No loan burden gives more flexibility and freedom.

» Rental income vs. property value mismatch

Current rent is only Rs. 30,000 per month.

That gives Rs. 3.6 lakhs yearly income.

Offer value of Rs. 1.2 crore is quite attractive.

Rental yield is below 3% annually.

This is much lower than other asset classes.

» Age of property also matters

Flat is 22 years old.

Older flats depreciate in value faster.

Future maintenance cost may increase.

Finding new tenants may become difficult.

Resale value after few more years may drop.

» Real estate has poor liquidity

Selling may take long in future.

Legal or tenant issues can delay liquidation.

Maintenance and society costs will also rise.

» Risk of being emotionally attached

If flat has no sentimental value, consider selling.

Emotional attachment may delay practical decisions.

» Taxation aspects to consider

Sale of flat will attract capital gains tax.

If held for more than 2 years, it is long-term gain.

LTCG is taxed at 20% with indexation benefit.

You may reduce tax using reinvestment options under Sec 54.

But investing again in property is not suggested here.

Instead, reinvest in financial assets post-tax.

» Don’t reinvest into another real estate

Real estate is illiquid and hard to manage.

Also not efficient for long-term wealth creation.

Avoid this as your age crosses 50.

Regular cashflow becomes more important than asset value.

» Reinvest smartly in mutual funds and fixed income

Reinvesting in well-diversified mutual funds is better.

Actively managed funds offer growth with expert control.

Avoid index funds and ETFs due to volatility and poor downside control.

Also avoid direct funds due to lack of guidance.

Use regular plans through MFDs with CFP credential.

This gives access to professional advice and portfolio reviews.

» Combine with debt funds and safe instruments

Don’t invest entire amount in equity MFs.

Use 40% in hybrid or debt-oriented options.

This gives stable income with moderate growth.

Diversify across risk levels and time horizons.

Keep part in low-risk funds for income generation.

» SIP and SWP strategy

Setup Systematic Withdrawal Plan (SWP) from mutual funds.

You can generate monthly income as needed.

Well-structured portfolio can give Rs. 60,000 to Rs. 70,000 monthly.

That is much better than your current Rs. 30,000 rent.

And it keeps growing each year.

» Invest balance lump sum for long-term growth

You may not need the entire capital now.

Let the rest stay invested for next 10+ years.

Use multi-cap and flexi-cap funds.

These help in long-term compounding.

» Insurance and medical care planning

At 51, medical cover is essential.

Use some part of proceeds to buy good family floater.

Also get critical illness cover if not done already.

Don’t link insurance with investment.

ULIPs or endowment policies are inefficient.

If you have any of those, surrender them and reinvest in mutual funds.

» Emergency reserve is still required

Keep Rs. 5 to 7 lakhs aside in liquid fund.

This should cover 6 to 9 months of expenses.

Don’t depend on fund withdrawal for emergencies.

» Keep rental flat only if emotionally attached

If you strongly value owning physical asset, you may keep.

But only from financial view, selling makes better sense.

Your return doubles through MF and structured investment.

» Avoid annuity or pension products

These lock your money and give low returns.

You lose flexibility and inflation protection.

Instead use MF-based SWP to get higher returns.

» Final insights

Selling the flat is a smart financial choice.

Rental yield is too low for current times.

Property age and future cost reduce attractiveness.

Reinvest in mutual funds and debt instruments wisely.

Use SWP to generate monthly income from capital.

Avoid ULIPs, annuities, and direct funds.

Use guidance from CFP and invest via regular plans.

Your money can work harder than the flat.

And still give you better income, growth and flexibility.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 11, 2025

Asked by Anonymous - Sep 11, 2025Hindi
Money
Dear Sir , I am 44 years with following investment portfolio I have monthly in hand salary of around 3 lac with monthly SIP of 85k , current corpus is at 82 lacs, mostly in equity mf. I have two flats in ggn with combined valuation of 1.2 Cr ( No loans) yielding me around 30 k rents monthly. I have a fiat where I live in Mumbai , I have taken around 1.16 Cr loan on that , current EMI rs 1.25 lacs. As of Now balance loan tenure is 10.5 years, however I am targeting to pay of this loan by next 7/8 years. Currently my pf balance is around 30 lacs that includes my vpf @ 12% with current monthly contribution of around 60 k ( incl vpf). I have ppf maturing next years with around 30 lac, Additionally wife ppf account with 15 lac will Mature in next 5 years( estimated corpus would be around 25 lacs on maturity). I have corporate nps with currently 15 lac , with current annual contribution of around 2.9 lac equivalent to 14% of my basic salary, Though I have a corporate medical from my company with 15 lac as sum assured for all family members , I have my personal medical insurance as well with 20 lac sum insured in that .I bought a pure term plan 2 years back with 1.5 Cr as sum insured . Our current house hold expenses is around 75-85 k per month which includes grocery, maid, utility charges, child school fee and tuition etc. I have a son in class 9 at present . I am a bit confused on Should I sell of one of flat in ggn ( valued around 65 lac) as I do not expect any major appreciation. If yes what should I do with that fund? Put it in mf or pay my home loan partially. My future goals ( estimated) . Child education 75 lacs in next 4-5 years . Another 50 lac for his marriage in next 12 years . To be able to retire with atleast 10-12 Cr in savings excl property in next 8-10 yes ( 52-55 yrs of age) . What should be way forward and right approach and planning to look for a comfortable retirement at the age of 52-55 years of age. . SJ
Ans: You have done very well so far. Balancing high salary, disciplined SIP, PF, PPF, and NPS shows strong financial discipline. Having no loans on two flats and already creating Rs. 82 lakh corpus is remarkable. You are well insured, and family needs are covered. Now the focus is how to align assets for education, loan repayment, and early retirement.

» Current Financial Snapshot
– Age 44, wife, son in class 9.
– Monthly salary: Rs. 3 lakh in hand.
– SIP: Rs. 85,000 monthly.
– Corpus: Rs. 82 lakh, mostly equity mutual funds.
– PF: Rs. 30 lakh with Rs. 60,000 contribution monthly (includes VPF).
– PPF: Rs. 30 lakh maturing next year, wife’s PPF Rs. 15 lakh maturing in 5 years.
– NPS: Rs. 15 lakh with Rs. 2.9 lakh annual contribution.
– Properties: Two flats in Gurgaon worth Rs. 1.2 crore giving Rs. 30,000 rent.
– Mumbai flat with Rs. 1.16 crore loan, EMI Rs. 1.25 lakh, 10.5 years left.
– Insurance: Corporate medical Rs. 15 lakh, personal medical Rs. 20 lakh, term plan Rs. 1.5 crore.
– Monthly expenses: Rs. 75,000 to 85,000.

This shows solid savings rate and diversified base.

» Child Education Goal
You expect Rs. 75 lakh needed in 4 to 5 years. This is critical and close. Your current equity corpus of Rs. 82 lakh can help. You must protect part of this from market volatility. Start shifting the needed amount gradually into safer options over next 2 to 3 years. This ensures stability when you actually need funds. Do not depend only on selling property or timing the market.

» Child Marriage Goal
You expect Rs. 50 lakh in 12 years. This goal has longer time. You can allow equity allocation to work here. Keep SIPs running and align this amount to long-term mutual fund investments. Active fund management with CFP monitoring will help to manage risks better than passive index funds. Index funds only follow the market and give no cushion during crashes. Active funds bring flexibility.

» Retirement Corpus Goal
You want Rs. 10 to 12 crore by age 52 to 55. This is possible if savings discipline continues. You already have strong inflows in PF, PPF, NPS, and SIPs. Your total yearly investments are above Rs. 18 lakh. With compounding and growth from equity, you can reach the target. But only if you balance loan repayment smartly and do not overcommit to property.

» Gurgaon Flat Decision
You are considering selling one flat worth Rs. 65 lakh. Rent yield is very low at Rs. 30,000 combined for both flats. That is hardly 3% return. Property appreciation is uncertain, and liquidity is low. Selling one flat can free Rs. 65 lakh. You can either reduce your Mumbai home loan or invest. If you prepay loan, you save 8 to 9% interest. That is risk-free saving. If you invest, you can target 11 to 12% return with equity and debt mix. Loan EMI reduction will also free monthly cash flow. Both options are valid, but considering your target of early retirement, partial loan repayment will reduce stress and secure your plan.

» Home Loan Strategy
Your current EMI is Rs. 1.25 lakh. That is almost half of salary. You want to finish in 7 to 8 years. Selling one flat and using proceeds partly for prepayment is good. You can keep balance for education or investment. This way you reduce loan faster and keep stability. Once loan is closed, cash flow of Rs. 1.25 lakh per month is released for retirement corpus building.

» Role of PF and PPF
PF is already Rs. 30 lakh with Rs. 60,000 monthly contribution. This is a strong long-term base. PPF of Rs. 30 lakh maturing next year should be extended. It is safe and tax-free. Wife’s PPF will also add to corpus in 5 years. These instruments provide stability and diversification away from equity.

» Role of NPS
Corporate NPS of Rs. 15 lakh with Rs. 2.9 lakh annual contribution is valuable. It gives tax benefits and long-term growth. Continue this. But remember, NPS has mandatory annuity component at retirement. Annuity gives low return. So do not depend only on NPS. Treat it as partial support, not main retirement source.

» Insurance and Risk Protection
Term cover of Rs. 1.5 crore is fine. Health cover of Rs. 35 lakh total is also fine. You can increase medical cover slightly in future, but for now it is adequate. Keep these updated as family ages.

» Asset Allocation Strategy
Currently, large portion is equity mutual funds. That is fine for growth. But as goals approach, you must rebalance. For child education in 4 to 5 years, reduce equity gradually. For retirement in 8 to 10 years, continue strong equity exposure. This balances safety and growth. Active mutual funds with CFP review are better than direct or index funds. Direct funds need self-management and can lead to wrong choices. Regular funds through CFP give better tracking and discipline.

» Cash Flow and Lifestyle
Your household expenses are Rs. 85,000. EMI is Rs. 1.25 lakh. SIP is Rs. 85,000. PF contribution Rs. 60,000. You are saving over 50% of income. This is excellent. Continue same. After loan closure, savings rate will further rise.

» Estate Planning
With multiple assets across PF, PPF, NPS, property, and mutual funds, estate planning is important. Write a Will clearly mentioning distribution. Update nominations everywhere. This avoids disputes later and protects your son’s future.

» Risks to Watch
– Equity volatility in short term may hurt education fund if not shifted.
– Property liquidity is low. Selling may take time.
– Loan EMI is high. If income reduces, stress will rise.
– Inflation will raise education and retirement costs. Corpus must grow faster.
– Taxation on FD interest or property rent will reduce effective income.

» Recommended Way Forward
– Sell one Gurgaon flat worth Rs. 65 lakh. Use part for Mumbai loan prepayment.
– Keep balance from sale to fund child education over next 4 to 5 years.
– Shift portion of equity corpus gradually into safer instruments for education.
– Continue SIPs for retirement and marriage goals.
– Extend PPF maturity and continue contributions.
– Keep NPS contributions running as corporate benefit.
– After loan closure, redirect EMI amount fully into retirement investments.
– Review asset allocation with CFP every year for balance between growth and safety.

» Finally
You are in a very strong position. Your discipline and savings rate are already high. Selling one property will simplify, reduce loan stress, and free funds for education. Retirement target of Rs. 10 to 12 crore is realistic if you keep current pace. Balance safety with growth, protect near-term goals, and use CFP expertise to align investments. With this approach, you will educate your son well, retire early, and live with dignity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 23, 2025

Money
Hello Sir, I am from Karnataka living in tier 3 coastal city , I am 52 yrs male, a freelancer having on average 15 to 20 lakhs income per year. Other than 2 residential flats which and 2 commercial property which yield income around 55k. I have 1 agriculture property , and a residential property which yield no income . I have some enquiry for agriculture land and i am in dilemma whether to sell it and invest money in PF and some commercial property which can yield some income for my future increasing expenses . Or i should sell other residential land and flats (12 years old) . I have a home without loan where i live. I have a SIP of 15000 pm and current MF portfolio of 24 lakhs. Kindly advice,Thanks in advance
Ans: You have shared your financial background with clarity. At 52 years, with multiple properties, rental income, and steady freelance earnings, you are already positioned with a strong foundation. Many people reach this stage without the discipline you have shown. Your concern about selling agricultural land or old residential flats and moving towards income-generating options is a valid thought. It shows you are planning with foresight for future expenses and cash flow stability.

I will give you a 360-degree perspective on this. The idea is to protect what you have, enhance cash flow, reduce risks, and prepare for rising expenses after 60 years.

» Present financial position

You have two residential flats and two commercial properties generating about Rs 55,000 rental income.

You own an agricultural land and another residential land not giving income.

You have a debt-free home where you live.

You earn Rs 15 to 20 lakhs annually as freelance income.

You have SIP of Rs 15,000 monthly and mutual fund portfolio of Rs 24 lakhs.

This is a strong mix of assets. Real estate, mutual funds, and freelance income together make your financial foundation quite solid.

» Importance of regular income at your stage

Your current freelance income is good. But it may fluctuate in future.

Expenses will keep rising due to inflation and lifestyle changes.

Rental income provides stability, but depending only on it is risky.

You will need income from multiple sources for comfort in retirement.

Hence, shifting some dead assets into income-generating options is wise.

» Thinking about selling agricultural land

Agricultural land usually does not generate regular monthly income.

It may have emotional or ancestral value, but financially it is idle.

If demand is there and you can get a good price, selling is practical.

Money can be reinvested into financial assets which give liquidity and growth.

So if you have genuine buyers and attractive price, this is a reasonable step.

» Considering sale of old residential flats

Residential flats over 10 years old face higher maintenance and lower rental yield.

Rental income from residential property is lower compared to commercial.

If you sell one residential flat, you can release a large amount of capital.

The proceeds can be invested in financial instruments which give more flexibility.

This is also an option if you prefer not to touch agricultural land.

» Which property to sell first

Between agricultural land and old residential flat, the agricultural land sale is better.

Reason: residential flat still generates rent, though low. Agricultural land generates nothing.

If selling agricultural land gives you lump sum, you can redeploy that for better returns.

If agricultural land sale is not possible now, then consider one flat.

So priority can be given to agricultural land disposal.

» Where to reinvest the sale proceeds

You are thinking of PF and commercial property. Let me explain.

Provident fund has restrictions and lock-in. At 52 years, starting fresh PF contribution is not ideal. Liquidity is low, and returns are not very high compared to inflation. It is better for salaried employees who have employer match, not freelancers.

Commercial property has higher yield, but also higher risk and management issues. Vacancy, maintenance, and legal complications can eat income. Too much real estate exposure makes your portfolio imbalanced.

So avoid locking money in new property or PF. Better options are available.

» Strengthening mutual fund investments

At present you have Rs 24 lakhs in mutual funds and SIP of Rs 15,000.

This needs to be scaled up once you liquidate agricultural land.

Mutual funds give liquidity, flexibility, and professional management.

Actively managed diversified equity funds are better than index funds.

Index funds look cheap, but they mirror the market without flexibility.

Actively managed funds handle volatility better and can generate alpha.

Investing through a Certified Financial Planner ensures discipline and guidance.

Regular plan investing is preferable over direct plan. Direct plans look cheaper but lack advice, monitoring, and risk review. Regular plans through professionals align better with your goals.

So part of the proceeds should go to mutual funds for growth.

» Debt and hybrid funds for stability

As you get older, stability is more important.

All money should not go into pure equity.

Debt funds and hybrid funds give balance of growth and safety.

They provide regular withdrawal options in retirement.

Even though debt funds are taxed as per slab, they offer liquidity and reduce volatility.

So, a mix of equity and debt is the right way.

» Emergency and medical safety

Keep 12 to 18 months of expenses in liquid instruments like FD or liquid funds.

You are self-employed, so income fluctuation risk is higher.

Check if you have adequate health insurance for yourself and family.

Medical inflation can disturb finances more than lifestyle inflation.

Having a large medical cover ensures peace of mind.

» Retirement income strategy

Your goal should be to create at least Rs 1.25 to 1.5 lakhs per month retirement income.

Current rental of Rs 55,000 is a good start.

SIPs and lump sum mutual fund growth will support the rest.

Plan systematic withdrawal from mutual funds after 60 years.

Rental + withdrawals + freelance (if continued) will give comfort.

This avoids dependence on only property rent.

» Tax considerations while selling

Sale of agricultural land: tax depends on whether it is rural or urban. Rural agricultural land is exempt. Urban agricultural land attracts capital gains tax.

Sale of residential property attracts capital gains tax, but reinvestment in financial assets is still better than reinvestment into another property.

Equity mutual fund sale: LTCG above Rs 1.25 lakhs taxed at 12.5%. STCG taxed at 20%.

Debt fund sale taxed as per slab.

You must plan sales and reinvestment keeping taxes in mind.

» Estate and succession planning

You own multiple properties. Passing them to heirs should be smooth.

Draft a will to avoid disputes later.

Mention how residential, commercial, and agricultural assets should be divided.

If you reinvest in mutual funds, nominate family members properly.

Succession clarity avoids family stress later.

» Managing lifestyle expenses

Rising expenses after retirement is a valid concern.

Future inflation at 6 to 7% will double expenses in 10 to 12 years.

Rental income may not rise at same speed.

Mutual funds, if continued, will grow faster than inflation.

That is why reinvesting agricultural land proceeds into mutual funds is better.

» Avoid over-exposure to property

You already have many real estate holdings.

They make your portfolio concentrated in one asset class.

Liquidity is low in property, and managing tenants is stressful with age.

By shifting one or two properties into financial assets, you balance risk.

This also gives flexibility for any sudden need.

» Finally

Selling agricultural land is a practical first step. If not, then sell an old flat. Avoid putting the money into PF or new commercial property. Strengthen your mutual fund portfolio with a mix of equity and debt through a Certified Financial Planner. Keep a strong emergency fund and health cover. Plan for systematic withdrawals in retirement. Draft a will for estate clarity.

You have worked hard to build these assets. With careful repositioning, you can meet rising future expenses and live comfortably without stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

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Career Counsellor - Answered on Dec 07, 2025

Career
Hello, I’m a student who recently joined the Integrated M.Sc Physics program at Amrita University. I’m aiming for a strong academic foundation and a clear career path. Could you please guide me on the following: How good is this course for research careers or higher studies (IISc, IITs, abroad)? What are the placement prospects after Integrated M.Sc Physics at Amrita? Does the program help in preparing for alternate options like UPSC, CDS/AFCAT, or technical roles? What skills (coding, research projects, certifications) should I start early to make the most of this degree?
Ans: Sree, Program Overview and Academic Foundation: Congratulations on joining the Integrated M.Sc Physics program at Amrita University. This five-year integrated program represents a rigorous pathway designed to equip you with advanced theoretical and experimental physics knowledge combined with cutting-edge scientific computing skills. The curriculum uniquely integrates a minor in Scientific Computing, which adds substantial computational capability to your profile—a critical advantage in today's research and professional landscape. The program incorporates comprehensive coursework spanning classical mechanics, electromagnetism, quantum mechanics, statistical physics, advanced laboratory work, and specialized topics in materials physics, optoelectronics, and computational methods, positioning you excellently for both research and professional careers.
Research Career Prospects: IISc, IITs, and Beyond: For research-oriented careers, the Integrated M.Sc Physics program at Amrita provides an exceptional foundation. Amrita's curriculum specifically aligns with GATE and UGC-NET examination syllabi, and the institution emphasizes early research engagement. The faculty at Amrita actively publish research in Scopus-indexed journals, with over 60 publications in international venues within the past five years, exposing you to active research environments.
To pursue research at premier institutions like IISc, you would typically follow the PhD pathway. IISc accepts M.Sc graduates through their Integrated PhD programs, and with your Amrita M.Sc, you're eligible to apply. You'll need to qualify the relevant entrance examinations, and your integrated program's emphasis on research fundamentals provides strong preparation. The final year of your Integrated M.Sc is intentionally structured to be nearly free of classroom commitments, enabling engagement with research projects at institutes like IISc, IITs, and National Labs. According to Amrita's data, over 80% of M.Sc Physics students secured internship offers from reputed institutions during academic year 2019-20, directly facilitating research career transitions.
Placement and Direct Employment Opportunities: Amrita University boasts a comprehensive placement ecosystem with strong corporate and government sector connections. According to NIRF placement data for the Amrita Integrated M.Sc program (5-year), the median salary in 2023-24 stood at ?7.2 LPA with approximately 57% placement rate. However, these figures reflect general placement trends; physics graduates often secure higher packages in specialized technical roles. Many graduates join software companies like Infosys (with early offers), Google, and PayPal, where their strong analytical and computational skills command competitive compensation packages ranging from ?8-15 LPA for entry-level positions.
The Department of Corporate and Industrial Relations at Amrita provides intensive three-semester life skills training covering linguistic competence, data interpretation, group discussions, and interview techniques. This structured placement support significantly enhances your employability in both government and private sectors.
Government Sector Opportunities: UPSC, BARC, DRDO, and ISRO: Your M.Sc Physics degree opens multiple avenues for prestigious government employment. UPSC Geophysicist examinations explicitly list M.Sc Physics or Applied Physics as qualifying degrees, enabling you to compete for Group A positions in the Geological Survey of India and Central Ground Water Board. The age limit for geophysicist positions is 32 years (with relaxation for reserved categories), and the exam comprises preliminary, main, and interview stages.
BARC (Bhabha Atomic Research Centre) actively recruits M.Sc Physics graduates as Scientific Officers and Research Fellows. Recruitment occurs through the BARC Online Test or GATE scores, with positions in nuclear science, radiation protection, and atomic research. BARC Summer Internship programs are available, offering ?5,000-?10,000 monthly stipends with opportunity for future scientist recruitment.
DRDO (Defense Research and Development Organization) recruits M.Sc Physics graduates through CEPTAM examinations or GATE scores for roles involving defense technology, weapon systems, and laser physics research. ISRO (Indian Space Research Organisation) regularly advertises scientist/engineer positions through competitive recruitment for candidates with strong physics backgrounds, offering opportunities in satellite technology and space science applications.
Other significant employers include the Indian Meteorological Department (IMD) recruiting as scientific officers, and NPCIL (Nuclear Power Corporation of India Limited), offering stable government service with competitive compensation packages exceeding ?8-12 LPA for scientists.
Alternate Career Pathways: UPSC, CDS, and AFCAT: UPSC Civil Services (IFS - Indian Forest Service): M.Sc Physics graduates qualify for UPSC Civil Services examinations, with the forest service offering opportunities for science-based administrative roles with potential to reach senior government positions.
CDS/AFCAT (Armed Forces): While AFCAT meteorology branches specifically require "B.Sc with Maths & Physics with 60% minimum marks," the technical branches (Aeronautical Engineering and Ground Duty Technical roles) require graduation/integrated postgraduation in Engineering/Technology. An M.Sc Physics integrates well with technical qualifications, though you would need engineering background for direct officer entry. However, you remain eligible for specialized technical interviews if applying through alternate defence channels.
UGC-NET Examination: This pathway leads to Assistant Professor positions in central universities and colleges across India. NET-qualified candidates receive scholarships of ?31,000/month for 2-year JRF positions with PhD pursuit, transitioning to Assistant Professor salaries of ?41,000/month in government institutions. This route provides long-term academic career security with research opportunities.
Private Sector Technical Roles
M.Sc Physics graduates are increasingly valued in data science, software engineering, and technical consulting. Companies actively recruit physics graduates for software development, where strong problem-solving and logical reasoning translate to competitive packages of ?10-20 LPA. Specialized domains including quantum computing development, financial modeling, and scientific computing offer premium compensation. Your minor in Scientific Computing makes you particularly attractive to technology companies requiring computational expertise.
International Opportunities and Higher Studies Abroad
An M.Sc from Amrita facilitates admission to PhD programs at international institutions. German universities offer tuition-free or low-fee MSc Physics programs (2 years) with scholarships like DAAD providing €850+ monthly stipends. US universities accept M.Sc graduates directly for PhD positions with full funding (tuition coverage + stipend). These pathways require GRE scores and strong Statement of Purpose articulating research interests. Research collaboration opportunities exist with Max Planck Institute (Germany) and CalTech Summer Research Program (USA), both welcoming Indian M.Sc students.
Essential Skills and Certifications to Develop Immediately: Programming Languages: Start learning Python immediately—it's universally used in research and industry. Dedicate 2-3 hours weekly to data analysis, scientific computing libraries (NumPy, SciPy, Pandas), and machine learning fundamentals. MATLAB is equally critical for physics applications, particularly numerical simulations and data visualization. Aim to complete MATLAB certification courses within your first year.
Research Tools: Learn Git/version control, LaTeX for scientific documentation, and data analysis frameworks. These skills are indispensable for publishing research papers and collaborating on projects.
Certifications Worth Pursuing: (1) MATLAB Certification (DIYguru or MathWorks official courses) (2) Python for Data Science (complete certificate programs from platforms like Coursera) (3) Machine Learning Fundamentals (for expanding technical versatility) & (4) Scientific Communication and Technical Writing (develop through departmental workshops)
Strategic Internship Planning: Leverage Amrita's research connections systematically. In your third year, apply to BARC Summer Internship, IISER Internships, TIFR Summer Fellowships, and IIT Internship programs (like IIT Kanpur SURGE). These expose you to frontier research while establishing connections for future PhD or scientist recruitment. Target 2-3 research internships across different specializations to develop versatility.

TO SUM UP, Your Integrated M.Sc Physics degree from Amrita positions you exceptionally well for competitive research careers at IISc/IITs, prestigious government scientist roles at BARC/DRDO/ISRO, and international PhD opportunities. The program's scientific computing emphasis differentiates you in the job market. Immediate priorities: (1) Master Python and MATLAB within the first two years; (2) Engage in research projects starting year 2-3; (3) Target internships at premiere research institutions; (4) Prepare GATE while completing your degree for maximum flexibility in recruitment; (5) Consider UGC-NET for long-term academic stability. Your career trajectory will ultimately depend on developing strong research fundamentals, demonstrating consistent excellence in specialization areas, and strategically selecting internship and research opportunities. The rigorous Amrita program combined with disciplined skill development positions you for exceptional career success across multiple sectors. Choose the most suitable option for you out of the various options available mentioned above. All the BEST for Your Prosperous Future!

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Asked on - Dec 07, 2025 | Answered on Dec 07, 2025
Thankyou
Ans: Welcome Sree.

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Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2025

Asked by Anonymous - Dec 06, 2025Hindi
Money
Dear Sir/Ma'am, I need some guidance and advice for continuing my mutual fund investments. I am a 36 year old male, married, no kids yet and no debts/liabilities as such. I have couple of savings in PPF, NPS, Emergency funds and long term investing in direct stocks. I recently started below mentioned SIPs for long term to grow wealth. Request you to review the same and let me know if I should continue with the SIPs or need to rationalize. Kindly also advice on how to invest a lumpsum amount of around 6lacs. invesco small cap 2000 motilal oswal midcap 2700 parag parikh flexicap 3000 HDFC flexicap 3100 ICICI prudential largecap 3100 HDFC large and midcap 3100 HDFC gold etf FOF 2000 ICICI Pru equity and debt fund 3000 HDFC balanced advantage fund 3000 nippon india silver etf FOF 2000
Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Dr Dipankar

Dr Dipankar Dutta  |1837 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Dec 05, 2025

Career
Dear Sir, I did my BTech from a normal engineering college not very famous. The teaching was not great and hence i did not study well. I tried my best to learn coding including all the technologies like html,css,javascript,react js,dba,php because i wanted to be a web developer But nothing seem to enter my head except html and css. I don't understand a language which has more complexities. Is it because of my lack of experience or not devoting enough time. I am not sure. I did many courses online and tried to do diplomas also abroad which i passed somehow. I recently joined android development course because i like apps but the teaching was so fast that i could not memorize anything. There was no time to even take notes down. During the course i did assignments and understood the code because i have to pass but after the course is over i tend to forget everything. I attempted a lot of interviews. Some of them i even got but could not perform well so they let me go. Now due to the AI booming and job markets in a bad shape i am re-thinking whether to keep studying or whether its just time waste. Since 3 years i am doing labour type of jobs which does not yield anything to me for survival and to pay my expenses. I have the quest to learn everything but as soon as i sit in front of the computer i listen to music or read something else. What should i do to stay more focused? What should i do to make myself believe confident. Is there still scope of IT in todays world? Kindly advise.
Ans: Your story does not show failure.
It shows persistence, effort, and desire to improve.

Most people give up.
You didn’t.
That means you will succeed — but with the right method, not the old one.

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