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46, 3 lakhs per month, investing 50k in SIP - Can I reach 2 crores in 10 years?

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jul 11, 2024Hindi

Money

I am 46 , earning 3 lakhs per month Investment 50 thousands in sip. Goal of atleast 2 cr in 10 years, will increase SIP ANNUALLY.. CAN YOU GUIDE ME..

Ans: Achieving a Rs. 2 Crore Goal in 10 Years: Strategic SIP Planning
Current Investment Scenario
You are 46 years old and earn Rs. 3 lakhs per month. You invest Rs. 50,000 per month in a SIP. Your goal is to accumulate at least Rs. 2 crores in 10 years. You plan to increase the SIP amount annually.

Importance of SIP for Wealth Creation
SIP is a disciplined investment strategy. It helps in building wealth over time. Investing monthly reduces market timing risk. SIP benefits from rupee cost averaging. This ensures you buy more units when prices are low.

Choosing the Right Funds
Select funds with a good track record. Actively managed funds are recommended. They adjust portfolios based on market changes. This can lead to better returns compared to index funds. Consulting a Certified Financial Planner (CFP) can help in fund selection.

Annual Increase in SIP
Increasing your SIP annually can significantly boost returns. Even a 10-15% annual increase can make a big difference. It ensures that your investment keeps pace with inflation and growing income.

Diversification for Risk Management
Diversify your SIP investments. Include large-cap, mid-cap, and small-cap funds. This mix balances potential returns and risks. Diversification can protect against market volatility.

Monitoring and Rebalancing
Regularly monitor your investments. Rebalance the portfolio to stay aligned with goals. Adjust based on market conditions. This ensures your portfolio remains on track.

Avoid Direct Funds
Direct funds might seem cost-effective. However, they lack professional guidance. Investing through a CFP ensures informed decisions. They provide valuable insights and help in fund selection.

Benefits of Regular Funds
Regular funds offer expert management. A CFP can guide on the best funds. They help in navigating market complexities. Regular funds ensure informed investment decisions.

Calculating Expected Returns
Assume an average annual return of 12-15% for equity funds. With a starting SIP of Rs. 50,000, increasing annually, you can achieve your goal. Regularly increasing the SIP amount enhances your corpus over time.

Risks and Considerations
Investing in mutual funds involves market risks. The value of your investment can fluctuate. Stay informed about market trends and fund performance. Regular reviews and adjustments are crucial. A CFP can assist in managing risks effectively.

Final Insights
Investing Rs. 50,000 per month in SIPs is a wise strategy. Choose actively managed funds with strong performance records. Plan to increase your SIP amount annually. Diversify your investments to manage risk. Regularly monitor and rebalance your portfolio. Consulting a CFP can provide valuable guidance in fund selection and investment strategy. This approach will help you achieve your goal of Rs. 2 crores in 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Mutual Funds Expert - Answered on Nov 11, 2022

Question by Kiran - Nov 11, 2022Hindi

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Age 45. Currently I am investing 25k in SIP.I can take my SIP upto 50k per month. My goal is 2cr in next 13 years. PFB my current SIPs: Tata Digital India Fund Direct Growth -- 3000 Parag Parekh Conservative Hybrid Fund Direct Growth -- 2000 Aditya Birla Sun Life Tax Relief 96 Direct Growth -- 3000 Mirae Asset Emerging Bluechip Fund Direct Growth -- 2000 DSP Tax Saver Direct Plan Growth -- 5000 IIFL Focussed Equity Fund Direct Growth -- 5000 Parag Parekh Flexi Cap Fund Direct Growth -- 5000

Ans: Hello Kiran. With your current portfolio allocation, I would suggest shuffling and rebalancing your portfolio. For future sips, you may consider considering few schemes like ABSL Tax and Parag Parikh Flexi Cap Fund. To add more sips, try adding to the modified portfolio. It is not suggested to increase the current number of schemes. To achieve the corpus of 2Cr in next 13 years, the required sip amount is 50 k approx which you are already willing to start.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Question by Pritam - May 30, 2023Hindi

Money

I m 39 years old . I m already 2000 sip in 5 nos So I Please suggest I m interested 20000 more investment in sip per month

Ans: Given your age and existing SIP investments, here's a suggested allocation for the additional ?20,000 SIP investment per month:

Large Cap Fund: Allocate ?5,000 to a large-cap fund for stability and consistent returns.
Mid Cap Fund: Allocate ?5,000 to a mid-cap fund for potential growth opportunities.
Flexi Cap Fund: Allocate ?5,000 to a flexi-cap fund for flexibility across market caps.
Balanced Advantage Fund: Allocate ?5,000 to a balanced advantage fund for dynamic asset allocation based on market conditions.
Ensure to select funds with a consistent track record, experienced fund managers, and low expense ratios. Regularly review your portfolio's performance and adjust allocations if needed to stay aligned with your financial goals and risk tolerance. Consulting with a financial advisor can also provide personalized recommendations based on your specific situation and objectives.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - May 08, 2024Hindi

Money

I do sip of rs 300000000 (30 crore) per month......each year i increased by 10 percent. I am 25 years please guide...

Ans: Wow! Your dedication to investing such a substantial amount through SIPs is truly impressive.
Starting at such a young age and with such a significant monthly contribution shows foresight and financial responsibility beyond your years.
Understanding Your Goals
It's evident that you have long-term financial goals in mind, and your proactive approach to investing reflects your commitment to securing your future.
By starting your investment journey at 25 and with a substantial monthly SIP amount, you're laying a solid foundation for wealth accumulation and financial independence.
Strategies for Maximizing Returns
Consistent Increase in SIP Amounts
Increasing your SIP contributions by 10% annually is a prudent strategy to keep pace with inflation and potentially enhance your wealth accumulation over time.
This disciplined approach ensures that your investments grow in line with your income and financial goals, compounding your returns significantly in the long run.
Diversification Across Asset Classes
Consider diversifying your investment portfolio across various asset classes such as equities, debt, real estate, and alternative investments.
This diversification helps spread risk and can potentially enhance returns while safeguarding your portfolio against market volatility.
Periodic Review and Adjustments
Regularly review your investment portfolio and performance to ensure it remains aligned with your financial goals and risk tolerance.
Periodic adjustments may be necessary to rebalance your portfolio, capitalize on emerging opportunities, or mitigate risks as market conditions evolve.
Seeking Professional Advice
Importance of Professional Guidance
While your commitment to investing is commendable, seeking professional advice from a Certified Financial Planner (CFP) can provide valuable insights and guidance.
A CFP can help you tailor a comprehensive financial plan, optimize your investment strategy, and navigate complex financial decisions with confidence.
Continuous Learning and Growth
Stay informed about financial markets, investment trends, and economic developments to make informed decisions.
Continuously educate yourself and leverage resources to enhance your financial knowledge and expertise.
Conclusion
Your proactive approach to investing such a significant amount through SIPs at a young age demonstrates foresight and discipline. By continuing to increase your SIP contributions, diversifying your portfolio, and seeking professional guidance, you're well-positioned to achieve your long-term financial goals and secure a prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Question by Er.Abhishek - Jul 27, 2024Hindi

Money

I want to get 2crore in next 10 years where i invest. My age is 27 and salary is 50000 pm out of which 3500 is already in Running sip

Ans: To achieve Rs. 2 crore in the next 10 years, you need a clear strategy. Your current SIP of Rs. 3,500 is a good start, but more is needed.

Understanding Your Financial Situation
1. Monthly Salary: Rs. 50,000

After essential expenses, assess how much you can save.
2. Current SIP: Rs. 3,500

Continue with your existing SIPs.
Evaluate the performance periodically.
Investment Strategy
1. Increase SIP Contributions

Aim to save and invest a larger portion of your salary.
Start with an additional Rs. 10,000 per month.
2. Diversified Portfolio

Invest in a mix of large-cap, mid-cap, and small-cap funds.
Include aggressive hybrid funds for balanced growth and stability.
3. Actively Managed Funds

Choose funds managed by experienced professionals.
Actively managed funds can outperform index funds.
Steps to Achieve Your Goal
1. Calculate the Required SIP

Use an online SIP calculator.
Determine the monthly SIP needed to reach Rs. 2 crore.
2. Choose Suitable Funds

Large-cap funds for stable growth.
Mid-cap and small-cap funds for higher returns.
Avoid index funds due to their lower potential for outperformance.
3. Regular Monitoring

Review your investments every six months.
Adjust your portfolio based on market conditions and performance.
Additional Strategies
1. Emergency Fund

Keep 6 months of expenses in a liquid fund.
This ensures you don't dip into your investments in case of emergencies.
2. Increase SIP Amount Annually

Increase your SIP amount by 10% each year.
This compensates for inflation and helps reach your goal faster.
3. Tax Planning

Invest in tax-saving mutual funds.
This helps reduce your tax liability and increase savings.
Disadvantages of Index Funds
1. Lower Potential Returns

Index funds track the market and rarely outperform.
Actively managed funds aim to beat the market.
2. Limited Flexibility

Index funds follow a fixed strategy.
Actively managed funds can adapt to market changes.
Benefits of Regular Funds through MFD with CFP Credential
1. Professional Guidance

Get advice from a certified financial planner.
They can tailor investments to your goals.
2. Better Service

MFDs provide regular updates and reviews.
This ensures your investments stay on track.
Final Insights
To achieve Rs. 2 crore in 10 years, increase your SIPs and diversify your portfolio. Invest in actively managed funds for better returns. Regularly review and adjust your investments. Consulting a Certified Financial Planner can help you stay on track and reach your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Latest Questions

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi

Career

Hello sir I am mbbs graduated from russia in 2020,n passed with my fmge exam in india in 2021, I want to ask if i want to practice medicine or work as doctor in uk ? Is it necessary for me to pass plab exam exam? Or if i get sponsorship from any uk i will be able to work there and simultaneously i will give plab exam?? Please guide me i m so confused?

Ans: Hi, I understand that you pursued a medicine course in Russia (a non-European country) and, since you are from India, you have completed the FMGE. Now you want to practice or work in the UK as a doctor?

Based on your question, you are eligible to practice in India after completing your internship (which you haven't mentioned, but I assume you have completed it). The FMGE is essentially a licensure exam for Indian students who have completed their medical studies abroad, so you are eligible to practice in India only.

If you want to practice medicine in the UK, you need to complete the PLAB test, as you are from outside the UK/Switzerland/European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland).

You also inquired about sponsorship. Here is the information related to sponsorship for practicing medicine in the UK.
(Extracted from general medical council, uk org. )Applying for registration using sponsorship
If you apply through sponsorship, you will have to satisfy the sponsor that you possess the knowledge, skills and experience required for practising as a fully registered medical practitioner in the UK. Each sponsor has their own scheme which we have pre-approved. If you can satisfy the requirements of their scheme, they will issue you with a Sponsorship Registration Certificate (SRC) which you will need for your application with us. Please ensure this is a Sponsorship Registration Certificate for GMC registration, as we can’t accept UK visa sponsorship certificates for your application for registration.
Please note that a core part of all sponsors' criteria is that a doctor applying for an offer of sponsorship must have been engaged in medical practice for three out of the last five years including the most recent 12 months. If you cannot meet these minimum criteria, it is unlikely that you'll be able to supply sufficient evidence to support your application for sponsorship.
Doctors applying through sponsorship are required to demonstrate their English language skills by achieving our current minimum scores in the academic version of the IELTS test or the OET (medicine version).
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• Birmingham and Solihull Mental Health NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry (Birmingham)
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• ENT UK – Royal College of Surgeons
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KINDLY NOTE: If your sponsor is not on this list then you cannot apply using sponsorship.
If you have any further questions, please visit the GMC website for more information.

WISH YOU ALL THE VERY BEST.

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Aug 02, 2024Hindi

Career

I’m mbbs final year student from Kathmandu university want pg medicine from UAE

Ans: You have provided very limited information. I understand that you are a student from Kathmandu University and wish to pursue higher education in medicine in the UAE. To provide a more accurate response, I need the following details:

What is your nationality? (Based on your nationality, I can check the relevant requirements from the health department regarding courses and internships).

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Dec 20, 2024Hindi

Career

Sir my son has 92 percentile in cat 2024..what are his scopes of admission.

Ans: Hi Sir,
You have provided very limited information to obtain the details. However, the percentile of the candidate will not solely determine the admission process. Other factors are also involved, including:

- Course
- Institution
- Caste
- Creamy layer
- Gender

But, there may be possibilities for admission to the following IIMs: IIM Visakhapatnam, Udaipur, Bodhgaya, Shillong, and Rohtak.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Asked by Anonymous - Dec 21, 2024Hindi

Money

Hi Sir, I follow your articles regularly and your detailed assessment is really awesome.I am 47yrs Male with wife, 20&18 years kids, elder one is in B.Tech and younger one is 12th. My wife is a home maker. Coming to financials. I have 4 houses including the one residing worth 10cr(total) and getting rental income of 70k per month, invested in stocks and MFs worth 60L, have foreign stocks of worth 1.7cr, accumulated pf around 1.3cr. I have farm lands worth 5cr. Have 1.2cr loan and salary of ~4L (net). current sips in equity 70k/month, have 5Cr term plan, health insurance for family 50L. How do I plan my retirement at 52-53years assuming 80 years life expectancy. Don't want to depend on kids and need regular income ~3-4L per month.

Ans: Asset Evaluation
Real Estate:
You own four houses worth Rs 10 crore, generating Rs 70,000 monthly rental income. This is a solid base for passive income. However, real estate can have fluctuating maintenance costs, tenant issues, and varying rental yields over time.

Stocks and Mutual Funds:
Your Rs 60 lakh investment in stocks and mutual funds is a commendable step. Active mutual funds offer professional fund management and can outperform index funds over time.

Foreign Stocks:
Your Rs 1.7 crore portfolio in foreign stocks adds geographical diversification. Monitor currency exchange fluctuations and global market trends.

Provident Fund (PF):
With Rs 1.3 crore in PF, this is a reliable retirement corpus. The fund provides fixed returns and tax benefits, adding stability.

Farm Lands:
Farm lands worth Rs 5 crore are an illiquid but valuable asset. They might not generate consistent income unless leased or developed.

Loans:
A loan liability of Rs 1.2 crore needs prioritised repayment. Focus on loans with higher interest rates first.

Insurance Coverage:
A Rs 5 crore term plan is robust. Your Rs 50 lakh health insurance is sufficient for unexpected medical emergencies.

Retirement Goals
You need Rs 3–4 lakh monthly for 27–28 years post-retirement.
The portfolio must generate steady, inflation-adjusted returns.
Action Plan for Retirement
Debt Management
Prepay High-Interest Loans:
Use a portion of your surplus income to prepay loans. This reduces interest outflow and increases your cash flow.

Avoid New Loans:
Focus on reducing existing liabilities instead of taking on new ones.

Portfolio Restructuring
Real Estate:
Retain essential properties. Sell underperforming or non-essential properties to reduce concentration in real estate. Invest proceeds in mutual funds or debt instruments for diversification.

Mutual Funds (MFs):
Increase SIPs in actively managed funds. They outperform direct funds due to guidance from Certified Financial Planners and MFDs. Regular funds offer better tracking and professional assistance.

Stocks:
Monitor direct equity investments closely. Consider reallocating underperforming stocks to mutual funds for better management.

Debt Instruments:
Invest in high-quality debt funds or fixed-income securities for stability. These instruments balance equity volatility and ensure steady returns.

SIP Strategy
Increase SIPs from Rs 70,000 to Rs 1 lakh/month.
Allocate 70% to equity funds for long-term growth.
Invest 30% in debt funds for stability and liquidity.
Emergency Fund
Maintain a 12-month expense reserve in liquid funds or fixed deposits.
This covers unexpected expenses without disturbing investments.
Income During Retirement
Systematic Withdrawal Plan (SWP)
Use SWPs in mutual funds to generate regular income.
Withdraw 6–8% annually from your mutual fund portfolio for a steady income stream.
Rental Income Optimisation
Review property rents regularly.
Invest part of rental income in equity or debt mutual funds for compounding.
Dividend Stocks
Retain high-dividend-yield stocks for regular income.
Reinvest surplus dividends for long-term growth.
Tax Efficiency
Equity Funds Taxation:
Long-term gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds Taxation:
Both short- and long-term gains are taxed per your income slab.

Real Estate Capital Gains:
Use exemptions under Sections 54 or 54F to save tax on property sales.

Inflation Protection
Allocate 60–70% of your portfolio to equity investments.

Equity provides inflation-adjusted returns over time.

Debt funds and fixed instruments safeguard against equity market volatility.

Estate Planning
Draft a will to allocate assets transparently among family members.
Use nomination and joint ownership to avoid legal complications.
Consider a family trust for farm lands to avoid disputes.
Periodic Review
Review your financial plan every six months.
Adjust investments based on market conditions, goals, and needs.
Consult a Certified Financial Planner regularly for updates.
Finally
A well-diversified portfolio ensures financial independence post-retirement. Focus on debt repayment, portfolio balance, and tax-efficient withdrawals. Your assets can comfortably generate Rs 3–4 lakh monthly income, adjusted for inflation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Kanchan Rai |444 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 21, 2024

Question by Kevin - Dec 19, 2024Hindi

Relationship

I am the eldest sibling in our families and aged 51. Normally, whenever anyone in the family has a problem - financial, mental, psychological, issue with people or anything else, they come up to discuss with me and share. Well, many would say I am lucky as people look up to me when they are in any kind of a problem. But that is not the case. Sadly no one is around with whom I can discuss or even think to share my issues, my problems. I do not have any friends. Sadly, yes, that is a fact and at my age, I dont expect that here we have a culture where we can get to making friends, at least the kind of friends with whom you can confide, share your feelings, problems. I tried and failed. Maybe because I am introvert or maybe I am too cautious. To make it more complicated, I dont work in the regular kind of job. I am a lone person who works as a freelance from home. This limits my outreach when it comes to interacting with real people. I have clients, business contacts, but I cannot get personal with them. It will never be a good choice. My wife is busy with her job + we do not have any relation beyond the daily matters related to household and it has been more than 10 years now that we live this way. Tried to sort out things with her but she just does not have time and interest (after all who wants to add on to tensions, stress). My daughter is after all my daughter - I cannot share these with her, and definitely at 10 she is too young to be one to discuss such stuff. I am not sure how far this issue can be fixed but I am hopeful to find some path here.

Ans: Dear Kevin,
Starting small can be helpful. Consider connecting with people through shared interests or hobbies, either online or in person, where the pressure to immediately open up is minimal. Online communities, local meetups, or volunteer activities can create low-stakes opportunities to connect with like-minded individuals. The goal isn’t to instantly find someone to confide in but to slowly build a sense of belonging and companionship.

Your relationship with your wife appears to be another significant source of emotional distance. While her lack of interest in deep conversations may seem like a barrier, it’s worth exploring other ways to reconnect—perhaps by spending time together in shared activities or revisiting moments that once brought you closer. Sometimes, relationships stuck in routines benefit from new experiences or even professional counseling to navigate the underlying dynamics.

Regarding your daughter, while it’s clear she cannot shoulder your emotional burdens, she can still be a source of joy and connection. Investing time in activities with her can provide a sense of fulfillment and grounding that counters loneliness.

Above all, remember that reaching out for professional support, such as therapy, is not a sign of weakness but an act of self-care. A therapist can provide a safe space to express your feelings and help you develop strategies to foster deeper connections and manage emotional isolation.

You deserve to feel supported and connected, and even if the journey to finding that seems long, every step you take toward opening up or seeking out others is a move toward a more fulfilling and less lonely existence.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Nov 22, 2024Hindi

Money

My Question is for New Tax Regime for Financial Year 2024 – 25. Total gross Income is Rs.9 lakhs and along with that income from share / stock trading i.e short term gains of Rs. 1 lakh. Could you please help me advise if what would be the tax liability?

Ans: 01. Considering your Income of Rs.9.00 lakhs as business income & Rs.1.00 lakh as STCG on securities, without any tax savings, your tax liability would be around Rs.62,400.00 in New tax regime. If we opt for the old tax regime, your tax liability would be much more than this.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Question by SA - Nov 11, 2024Hindi

Money

I got a residential property through will from my mother,,property is 30 years old and i am planning to sell it, in that case i am going to get Rs 165lacks,, what will be the tax implication and how to avoid the same kindly advise i am 55 years old married man with a daughter

Ans: 01. In this case, you would be subjected to LTCG (Long Term Capital Gain) tax.
02. To work out LTCG, you should reduce its Cost from the Sale proceeds (Rs.165.00 lakhs).
of property, which was costed to your mother.
03. However, following details may help you to assess your tax liability.
Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
04. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
05. To avoid tax, you may invest in purchase of some house property. Exemption available would be minimum of Cost of new house property or the LTCG, which ever is less.
06. You have the option to purchase Capital Gain Bonds of NHAI etc., for tax saving.
07. Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 19, 2024Hindi

Money

Hello Sir, I worked in a Pvt Ltd company from 2006 to 2011, and they had their own PF trust. The company was later sold off to another firm. I still haven't withdrawn the my PF amount. How will i be able to do that. I have the PF number and ESP number. Since this was before 2011 , my UAN is not linked to this account. How will i be able to retrieve my PF amount that is still stuck here.

Ans: Kindly keep in touch with your previous employer (present owner of the company), in this connection. There should not be any problem in getting your PF amount, except certain formalities/ forms to be submitted.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Dear Guru. I have inherited a property in Mumbai from my deceased father which was purchased in 1983 by him. If today i sell the property which is worth 2.60 Crs whats my capital gains tax and how will it be calculated

Ans: 01. In absence of exact figures, it is not possible to calculate your Capital Gains Tax. However, following details may help you to assess your tax liability.
02. Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
03. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
04. Most welcome for any further clarifications. Thanks.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Question by Anil - Dec 20, 2024Hindi

Money

Top4 sips with 15k amount suggest me

Ans: Here’s an updated strategy for your Rs. 15,000 SIP allocation, replacing the sectoral/thematic fund with a small-cap fund for better long-term growth potential.

Suggested SIP Allocation (Rs. 15,000)
Large-Cap Fund

Allocation: Rs. 4,000/month
Objective: Stability and steady growth by investing in India’s top 100 companies.
Why Choose: Provides consistent returns and low volatility in your portfolio.
Flexi-Cap Fund

Allocation: Rs. 4,000/month
Objective: Diversified exposure across large, mid, and small-cap stocks.
Why Choose: Offers balanced risk and returns with flexibility during market cycles.
Mid-Cap Fund

Allocation: Rs. 3,500/month
Objective: Tap into the growth potential of medium-sized companies.
Why Choose: Higher returns with manageable risk compared to small caps.
Small-Cap Fund

Allocation: Rs. 3,500/month
Objective: Focus on fast-growing small-cap companies.
Why Choose: High-growth potential over the long term, though with higher volatility.
Why Include Small-Cap Funds?
Long-Term Growth: Small-cap companies have immense potential to grow significantly over time.
Diversification: Adds exposure to an underrepresented segment, complementing large and mid-caps.
High Returns: Potential for higher returns compared to other categories, albeit with higher risk.
Key Considerations
Investment Horizon: Stay invested for at least 7-10 years to mitigate short-term volatility.
Active Fund Management: Avoid direct or index funds to leverage professional expertise.
Regular Monitoring: Review fund performance periodically with a Certified Financial Planner.
Tax Implications
Equity Funds:
LTCG above Rs. 1.25 lakh/year taxed at 12.5%.
STCG (held less than 1 year) taxed at 20%.
Final Insights
This updated allocation ensures a mix of stability, moderate risk, and high growth. With consistent SIPs and periodic reviews, you can achieve robust wealth creation over the long term. A Certified Financial Planner can assist in optimising your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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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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