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Ramalingam

Ramalingam Kalirajan  |8005 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 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 - May 15, 2024Hindi
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Hi Sir, I am 46 years old and yeI have created 30 lakh corpus. Currently my take home salary is 1.4 lakh per month. I am investing 12500 per month in ppf . 5000 in Nps tier 1 and 1000 in nps tier 2 account. 20 K SIP in Mf. Like SBI balance fund 5000,Tata digital 5000, Nippon larg cap 2000, Motilal Oswal midcap 2000,Quant small cap 5000 and recently added Quant psu 1000. And some amount in invested lic yearly. also have 65 lakh medical cover for my family's. I have plan my retirement at the age of 55 . Can i Growup my corpus 1.5 CR at the time of retirement and get atleast 1lakh monthly for expenses. My another question is I investigated 8.5 lakh in direct stock(20) since 2021 for 10 years and get arround 20% return from last 3 years. Should I continue this or exist from the direct stock and invested this amount in MF. Please guide. My wife is already working in private school and his salary is 20k pm. Please guide

Ans: It's great to see your proactive approach towards financial planning and investment. Let's delve into your retirement and investment goals to ensure you're on track to achieve financial security and growth.

Retirement Planning Analysis
Planning to retire at 55 with a target corpus of 1.5 crores and a monthly expense requirement of 1 lakh is an ambitious yet achievable goal. Let's assess your current investments and savings to determine if they align with your retirement objectives.

Current Investment Portfolio Evaluation
Your investment portfolio exhibits a diversified mix of instruments, including PPF, NPS, mutual funds, LIC, and direct stock holdings. This diversified approach spreads risk and maximizes growth potential, aligning with your long-term financial goals.

Growth Projection and Retirement Corpus Target
To achieve a retirement corpus of 1.5 crores by 55, we'll need to assess your current savings rate, investment returns, and inflation impact. Utilizing retirement calculators and financial modeling can help determine the required monthly contributions and investment growth rate to meet your target.

Investment Strategy Review
Given your successful track record with direct stock investments and the robust performance with a 20% return over the past three years, continuing this strategy can be beneficial. However, it's essential to periodically review and rebalance your portfolio to optimize returns and mitigate risk.

Asset Allocation and Risk Management
Maintaining a balanced asset allocation across equity, debt, and other asset classes is key to managing risk and achieving long-term growth. Regularly monitoring market conditions and adjusting your portfolio accordingly can help capitalize on opportunities and minimize downside risk.

Importance of Contingency Planning
While focusing on retirement planning, it's crucial to prioritize contingency planning, including emergency funds, health insurance coverage, and estate planning. Adequate medical coverage for your family and an emergency fund provide financial security during unexpected events.

Consultation with a Certified Financial Planner
Engaging with a Certified Financial Planner can provide personalized guidance and strategies tailored to your financial goals and risk tolerance. They can help optimize your investment portfolio, assess retirement readiness, and navigate any financial challenges along the way.

Conclusion
With careful planning, disciplined savings, and strategic investment decisions, achieving your retirement goal of a 1.5 crore corpus by 55 is attainable. Continuing your direct stock investments alongside mutual funds can diversify your portfolio and enhance long-term growth potential. Consulting with a Certified Financial Planner will provide valuable insights and ensure you stay on track towards financial independence.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Asked on - May 16, 2024 | Answered on May 17, 2024
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Thanks for your valuable suggestions and quick response.
Ans: Welcome :)
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  |8005 Answers  |Ask -

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

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Hello Sir, I am a 40 yr old Zonal Sales Head in a private organisation having monthly take home salary of Rs.2.15 lakhs. I now invest Rs.81,500/month in diversified mutual funds SIP. I have a mutual fund Corpus of Rs.67.5 lakhs. I have Rs.16 lakhs in Shares in equity market & Rs.28 lakhs in PF, Rs.8 lakhs in PPF, Rs.8.5 lakhs in LIC Jivan Anand. I keep Rs.3 lakhs in Bank account. I have a 6 yr old daughter. I would like to have 2.5 Cr for my daughters' higher education in 15 yrs & i need to have a corpus of 8 crores for my retirement in 18 yrs. Please suggest, am i on the right path.
Ans: I understand that you want to ensure your daughter's higher education and a secure retirement. With a structured plan and consistent efforts, you're on the right path to achieving your financial goals. Let's dive deeper into your current investments and future needs.

Current Financial Standing
You have an impressive monthly salary of Rs. 2.15 lakhs. Out of this, you are investing Rs. 81,500 in diversified mutual funds SIPs. Your mutual fund corpus stands at Rs. 67.5 lakhs, and you have Rs. 16 lakhs in equity shares. Additionally, you have Rs. 28 lakhs in your Provident Fund (PF), Rs. 8 lakhs in Public Provident Fund (PPF), and Rs. 8.5 lakhs in LIC Jivan Anand. You also maintain Rs. 3 lakhs in your bank account for liquidity. This is a robust financial foundation.

Assessing Your Goals
Your financial goals are clear and ambitious. You aim to have Rs. 2.5 crores for your daughter's higher education in 15 years and a retirement corpus of Rs. 8 crores in 18 years. Let's break down how your current investments align with these goals and what adjustments may be necessary.

Mutual Fund Investments
Your substantial investment in mutual funds is commendable. Diversified mutual funds are a solid choice for long-term growth. Given your current SIPs, ensure that your portfolio remains balanced across large-cap, mid-cap, and small-cap funds. Diversification reduces risk and enhances growth potential.

Regular Monitoring and Rebalancing
It is crucial to monitor your mutual fund portfolio periodically. Market conditions change, and your investments may need rebalancing to maintain the desired asset allocation. Regular reviews with a Certified Financial Planner can help optimize your portfolio.

Benefits of Actively Managed Funds
Actively managed funds often outperform index funds, especially in the Indian market. Professional fund managers make strategic decisions to maximize returns, adapting to market fluctuations. This expertise can potentially provide higher returns compared to passive index funds.

Equity Shares
Your Rs. 16 lakhs in equity shares is a good investment. Direct equity investment can offer substantial returns but also comes with higher risk. Ensure that your equity portfolio is well-diversified across different sectors to mitigate risk. Consider periodically reviewing and possibly reallocating your investments based on market performance.

Provident Fund (PF) and Public Provident Fund (PPF)
Your investments in PF and PPF are prudent for long-term security. These instruments offer safety and tax benefits. Continue contributing to these funds to ensure a stable, risk-free component in your portfolio.

Life Insurance Policies
You have Rs. 8.5 lakhs in LIC Jivan Anand. While traditional insurance plans provide security, they often yield lower returns compared to mutual funds. Given your substantial investment in insurance, consider evaluating the returns and possibly reallocating to higher-yielding investments.

Surrendering Investment-cum-Insurance Policies
If the returns from LIC Jivan Anand are not meeting your expectations, consider surrendering the policy. Reinvesting the proceeds into diversified mutual funds can potentially offer better growth, aligning with your long-term goals.

Emergency Fund
Maintaining Rs. 3 lakhs in your bank account for emergencies is wise. This fund should cover at least six months of your expenses. Given your monthly salary and expenses, ensure that this emergency fund remains liquid and easily accessible.

Daughter's Higher Education Goal
To achieve Rs. 2.5 crores in 15 years for your daughter's higher education, your investments need to grow at a healthy rate. Diversified mutual funds can help achieve this target. Ensure that you regularly review and adjust your SIPs to stay on track with this goal.

Education Savings Plan
Consider setting up a dedicated education savings plan. This plan can focus on high-growth mutual funds with a mix of equity and debt to balance risk and returns. Regular contributions and compounding growth will help you reach the Rs. 2.5 crore target.

Retirement Planning
Your goal of Rs. 8 crores for retirement in 18 years is ambitious but achievable with disciplined investing. Let's evaluate how your current investments align with this goal.

Building a Retirement Corpus
Continue with your diversified mutual fund SIPs and equity investments. Additionally, consider increasing your SIP contributions periodically to match inflation and salary increments. This will help grow your corpus faster.

Role of Provident Funds
Your investments in PF and PPF will provide a stable and secure base for your retirement corpus. These funds should continue to form a core part of your retirement plan due to their safety and tax benefits.

Long-Term Investment Strategy
Adopt a long-term investment strategy focusing on equity mutual funds for growth. As you approach retirement, gradually shift to more conservative investments like debt funds to protect your corpus from market volatility.

Tax Planning
Efficient tax planning can enhance your savings and investment returns. Utilize tax-saving instruments like ELSS (Equity Linked Savings Scheme) mutual funds. They offer tax benefits under Section 80C and potential for higher returns.

Maximizing Tax Benefits
Ensure that you are fully utilizing the Rs. 1.5 lakh deduction limit under Section 80C through investments in PPF, EPF, and ELSS. Additionally, consider tax-saving options under Sections 80D for health insurance and 24(b) for home loan interest.

Health Insurance
Adequate health insurance is crucial for financial security. Ensure that you and your family are covered under a comprehensive health insurance plan. This will protect your savings and investments from unforeseen medical expenses.

Estate Planning
Consider creating a will to ensure your assets are distributed according to your wishes. Estate planning helps avoid legal complications and ensures your family's financial security.

Education and Retirement Goal Alignment
Balancing your daughter's education and your retirement goals is key. Prioritize and allocate investments towards both goals. A Certified Financial Planner can help structure a plan that aligns both objectives without compromising either.

Final Insights
You are on a commendable path with your disciplined investment approach. Your diversified portfolio and regular investments are key to achieving your financial goals. Regular reviews and rebalancing of your portfolio will ensure you stay on track.

Consulting with a Certified Financial Planner can provide tailored advice and strategies to optimize your investments. Stay focused, and your financial goals are well within reach.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  |1036 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 24, 2024

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Hello Madam I am Vivek & 43 Year OLD , I have corpus of 60 Lac & SIP of 30K ,Gold Asset 10Lac ,PF : 10 Lac ,Home loan: 7 lac going on .LIC & Term Plans are there Not considered as Investment I invested 30 Lac as below Small Cap 4,00,000 13% Flexi cap 4,00,000 13% Multi Cap 5,00,000 17% Large Cap 1,50,000 5% Large MID CAP 2,00,000 7% Mid cap 3,50,000 12% Sector Fund 6,80,000 22% Value Fund 3,50,000 12% Also started SIP of 30500 As 1]Nippon Small Cap -7000 2] HSBC Multi CAp-3000 3] Mahindra Manu Mid CAp - 4000 4] Motilal Oswal Mid Cap : 3000 5] 4] Motilal Oswal Large & Mid Cap : 3000 5] HDFC Defence Fund :5000 6]ICICI Prudential PSU Equity Fund -3000 6] Axis Value Fund - 2500 7] PPF -4000 What will be corpus after 5 years ,will it be sufficient if I Quit Job by 48 ,Monthly Expenses is 60K PM
Ans: Hello;

Your monthly expenses of 60 K will be around 80 K in 5 years from now considering 6% inflation.

Further your sip sum, corpus sum, lumpsum investment, gold holding, pf holding will yield you a cumulative corpus of 2.13 Cr after 5 years.

If you use this sum to buy an immediate annuity from a life insurance company you may expect to receive a monthly income of around 90K (post-tax).

LIC policy maturity proceeds, if any, and PPF(you should continue as long as possible) will be surplus.

Hope the home loan is fully repaid over 5 yr time.

You may quit regular 9 to 5 job and keep yourself occupied in some alternate vocation or profession with flexi time maybe for another 8-10 years. This serves 2 purposes: it keeps your mind focused and active plus any income from such activities can help fund your holidays/boost retirement corpus.

Please ensure to have a good personal healthcare cover for yourself and your spouse.

Happy Investing;

..Read more

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Dr Nagarajan Jsk

Dr Nagarajan Jsk   |250 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Feb 19, 2025

Career
How many marks is required in neet to get admission in iisc bangalore
Ans: IISc is a premier institute. When planning to join a prestigious institution, it's important not to focus solely on the eligibility criteria. Generally, the minimum eligibility for admission varies between 50-60%. This means that if you have at least 60% marks in the required subjects, you still may not guarantee admission, as many aspirants intend to pursue their studies at the same institute. Consequently, competition can be intense, and some applicants might not secure a place.

Please note that the admission selection process typically involves an entrance exam conducted either by the institute itself or by a testing agency. According to your query, the basic eligibility to pursue an undergraduate program at IISc is 60%, and candidates are also required to appear for the entrance exam.

For your reference, I have extracted this information from the IISc website. If you need any further details, kindly feel free to POOCHO. LIFE CHANGE KARO!

Eligibility criteria
Applicants must be Indian nationals, OCI/PIO/Foreign Nationals to apply for IAT 2025.

The candidates must have passed the Class XII (or equivalent) examination with science stream from any board recognized by the Council of Boards of School Education (COBSE) in India. Foreign Nationals need to upload an equivalence certificate issued by the Association of Indian Universities unless they have passed the Class XII or equivalent level examination from any board recognized by the Council of Boards of School Education (COBSE) in India. The equivalence certificate must be uploaded while submitting the IAT 2025 Application Form under "Please upload copy of document supporting your claim of Foreign National (You'll need to produce original when necessary)".

Candidates should have been born on or after October 01, 2000. Five years of age relaxation is given to SC, ST, and PwD candidates, i.e, these candidates should have been born on or after October 01, 1995. Note that, there is no restriction based on the completion year of Class XII.

Candidates must have taken at least three subjects among Biology, Chemistry, Mathematics and Physics during their Class XII (or equivalent) examination.

Candidates belonging to SC/ST/PwD are required to score a minimum of 55% marks in aggregate or equivalent grade in their Class XII (or equivalent) examination. Candidates belonging to other categories are required to score a minimum of 60% marks in aggregate or equivalent grade in their Class XII (or equivalent) examination.

NOTE:
Candidates belonging to Kashmiri Pandit/Kashmiri Hindu Families (Non-Migrants) may apply for the IAT 2025 as Kashmiri Migrants subject to the fullfillment of other eligibility criteria. These candidates must upload a valid domicile certificate at the time of application under "Kashmiri Migrant Certificate".

Admission to IISERs
Admission to IISERs is exclusively through the IISER Aptitude Test (IAT), which is a computer-based test scheduled on Sunday, May 25, 2025 at 9:00 AM, at various centres across the country.

Performance Criteria in Class XII (or equivalent examination)
Candidates whose Class XII (or equivalent) examination results have not yet been declared can apply for IAT 2025. However, their admission will be subject to fulfilling the minimum eligibility criteria given above.
For candidates who have appeared in the Class XII (or equivalent) examination multiple times (for whatever reasons), the best of the performances in terms of aggregate in a given year will be considered.
If a board gives aggregate marks considering both Class XI and Class XII, then only Class XII (or equivalent) examination marks will be considered. If a board gives aggregate marks considering the results of all three years of a 3-year diploma or courses of equivalent duration, then only the marks scored in the final year will be considered. Similarly, the marks scored in the final two semesters will be considered for boards that follow a semester system.
If a board awards only letter grades without providing an equivalent percentage of marks on the grade-sheet, the candidate should obtain a certificate from the board specifying the equivalent marks and submit it before the deadline of the mark-sheet submission. In case the board does not provide such a certificate, the percentage marks will be assessed as follows:

percentage marks = (CGPA or CPI obtained × 100) / PS,
where PS is the maximum value of the point scale used by the respective board.
Reservation Policy
Reservation policies as mandated by the Govt. of India will apply
Scheduled Caste (SC) - 15% of seats
Scheduled Tribe (ST) - 7.5% of seats
Other Backward Classes belonging to the Non-Creamy Layer (OBC-NCL) - 27% of seats
Persons with Disability (PwD) with at least 40% impairment - 5% of seats (horizontal, within the same category)
Kashmiri Migrants - 3 seats per IISER (supernumerary)
Economically Weaker Section (EWS) - up to 10% (as per Government of India rules)
Note that the EWS/OBC-NCL certificate should be issued on or after April 01, 2025

...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.

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