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Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 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 - Jan 22, 2024Hindi
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I am 55 yrs of age I have cash in hand payment of 80000. I need to buy a house of 1 cr when i retire at 50 I will be retiring with pension and medical cover Thks

Ans: There seems to be a discrepancy in the information provided. You mentioned you are 55 years old and want to buy a house of 1 crore when you retire at 50. It's likely you meant 60 instead of 50 for your retirement age.

Here's how I can help you considering a retirement age of 60:

Planning for a House Purchase:

Investment Timeframe: You have 5 years (assuming retirement at 60) to accumulate the remaining amount for the house (Rs. 1 crore - Rs. 80,000) = Rs. 9,20,000.

Investment Options: Given the shorter timeframe, consider options with a balance of growth potential and moderate risk:

Fixed Deposits (FDs): Secure investment with guaranteed returns, but interest rates might not outpace inflation.
Debt Mutual Funds: Potentially higher returns than FDs, but some market fluctuations are possible. Explore short-term debt funds or income funds for stability and regular interest payouts.
Here's a breakdown of two investment approaches (consult a financial advisor for personalization):

Approach 1: Prioritizing Safety (Focus on FDs)

Invest a major portion (around 70%) in FDs. Research and compare FD interest rates offered by different banks.
Consider a shorter tenure FD (like 3-year) to potentially ladder your investments and have some flexibility closer to your purchase.
Invest the remaining amount (around 30%) in low-risk debt funds for potentially higher returns.
Approach 2: Balancing Growth and Safety (Mix of FDs and Debt Funds)

Invest a portion (around 50%) in FDs for guaranteed returns.
Invest the remaining amount (around 50%) in debt funds with a slightly higher risk profile for potentially higher returns than FDs. Choose debt funds with a good credit rating.
Additional Tips:

Emergency Fund: Maintain an emergency fund with 3-6 months of living expenses to cover unexpected costs. Park this in a liquid instrument like a savings account.
Loan Options: Explore home loan options closer to your retirement. You might be eligible for senior citizen loan schemes with potentially lower interest rates. However, factor in the loan repayment burden after retirement.
Review and Rebalance: Regularly review your investment performance (at least annually) and adjust your strategy if needed.
Consulting a Financial Advisor:

A Certified Financial Planner (CFP) can analyze your financial situation, risk tolerance, and retirement plans. They can suggest a personalized investment strategy to reach your house purchase goal while considering your overall financial needs.

Remember:

There are inherent risks involved in any investment. The above approaches provide a general framework.
Disciplined investment and staying invested for the long term are crucial for achieving your goals.
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 Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2024

Asked by Anonymous - Apr 20, 2024Hindi
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Hello sir, I am 33yr old. I have a salary of 50k/month. I m living in rented house 8k/month. And SIP of 5k/month. Other expenses of 5-8k/month. Please suggest financial planning. And wanted to buy house.
Ans: It's great that you're thinking about financial planning at 33. Let's craft a strategy tailored to your needs and goals.

Emergency Fund:
Goal: Build an emergency fund equal to 6-12 months of living expenses.
Action: Allocate a portion of your savings monthly until you reach this target. Aim to have this fund in a liquid and easily accessible account.
SIPs & Investments:
Current SIP: 5k/month
Action: Consider increasing your SIP amount as your income grows. Diversify investments across equity, debt, and other asset classes to manage risk and achieve growth.
Home Purchase:
Goal: Buy a house.
Action: Start saving for a down payment. Consider your current expenses and see where you can cut back or increase savings. Also, explore home loan options to understand the amount you'd need to borrow and the EMI you'd be comfortable with.
Retirement Planning:
Goal: Secure your retirement.
Action: Start an SIP specifically for retirement. The earlier you start, the better. Consider allocating a portion of your monthly savings to this SIP.
Insurance:
Goal: Protect yourself and your loved ones.
Action: Ensure you have health insurance, life insurance, and if possible, disability insurance. Review and update coverage as your circumstances change.
Additional Income:
Goal: Increase income streams.
Action: Explore opportunities for side hustles, freelancing, or upskilling to boost your income.
Budgeting:
Goal: Manage expenses effectively.
Action: Create a monthly budget to track income and expenses. This will help you identify areas where you can save more.
Remember, financial planning is not a one-time activity. It's an ongoing process that requires regular review and adjustments as your life circumstances change. It's also essential to consult with a Certified Financial Planner to ensure your plan aligns with your goals, risk tolerance, and financial situation.

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Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

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

Asked by Anonymous - Jun 19, 2024Hindi
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Money
Hi I'm 31 yo women earning 40k month working in govt sector... I have around 2L saved in bank fd/rd, 5L in stocks and mf, I invest 13.5k pm in mf sip and since I'm covered under nps a monthly contribution of 8.3k monthly goes to my nps account...I would like to buy a house in another 5 years...how should I go about this to achieve my goal assuming the cost of home would be 75 lakhs.
Ans: You're aiming to buy a house worth Rs. 75 lakhs in 5 years. Let's strategize to achieve this goal effectively.

Current Investments Overview
Savings and Investments
You have Rs. 2 lakh in bank FD/RD and Rs. 5 lakh in stocks and mutual funds. You invest Rs. 13.5k monthly in MF SIPs and contribute Rs. 8.3k monthly to NPS.

Investment Strategy for Home Purchase
Increase Savings
Budgeting
Review your expenses and create a budget. Allocate more towards savings for your house. Cut down on non-essential expenses.

Mutual Funds SIP
Diversification
Continue with your MF SIPs. They provide disciplined savings and potential for growth. Consider increasing SIP amount gradually to accumulate more funds.

Actively Managed Funds
Choose actively managed funds for potentially higher returns. These funds are managed by professionals aiming to outperform the market.

NPS Contributions
Retirement Planning
NPS is a good retirement tool. Continue contributions as they also offer tax benefits. Ensure your asset allocation aligns with your risk profile.

Additional Investments
Equity Investments
Consider increasing exposure to stocks and equity mutual funds. They offer higher returns over the long term. Monitor and adjust based on market conditions.

Fixed Income Investments
Allocate a portion to fixed income instruments like FDs or debt mutual funds. They offer stability and are less volatile than equities.

Goal-based Investments
Short-term and Long-term Goals
Allocate funds specifically for your house purchase goal. This helps in tracking progress and ensures funds are available when needed.

Tax Planning
Utilize Tax Benefits
Utilize tax benefits available on investments. MFs, NPS, and FDs offer tax benefits under various sections. Plan investments to optimize tax savings.

Monitoring and Review
Regular Assessment
Review investments periodically. Ensure they are on track to meet your house purchase goal. Adjust investment allocations based on changing circumstances.

Market Conditions
Stay updated with market trends. Monitor economic conditions that impact investments. This helps in making informed decisions.

Final Insights
Achieving your goal of buying a house worth Rs. 75 lakhs in 5 years requires disciplined savings and strategic investments. Continue with MF SIPs, NPS contributions, and diversified investments. Monitor progress regularly and adjust investments as needed. Professional guidance can enhance your strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 22, 2024

Money
Hi I m 49 year old I have monthly income of 1 lakh . I have 25 thousand of investment monthly. I have personal loan of 9 lakh I will retired at 60 . I have a planning of purchasing home of 50 lakh . Kindly suggest.
Ans: First of all, it's great to see you're proactive about your financial future. At 49, with a monthly income of Rs 1 lakh and investing Rs 25,000 monthly, you're on a solid path. Let's plan how you can manage your personal loan, save for retirement, and purchase a home worth Rs 50 lakh.

Understanding Your Current Financial Position
You have a monthly income of Rs 1 lakh and a personal loan of Rs 9 lakh. You invest Rs 25,000 monthly, which is commendable. Your goal is to retire at 60 and buy a home worth Rs 50 lakh. Let's break down how you can achieve these goals.

Managing Your Personal Loan
Importance of Reducing Debt
Your personal loan of Rs 9 lakh is a significant liability. Paying off this loan should be a priority to free up your cash flow and reduce financial stress. Personal loans usually have high-interest rates, which can eat into your savings.

Accelerating Loan Repayment
Consider allocating more funds towards your loan repayment. This might mean temporarily reducing your monthly investments. Paying off the loan faster will save you money on interest and improve your financial stability.

Balancing Loan Repayment and Investments
You don't want to stop investing altogether. Find a balance where you can pay extra towards your loan while still investing a portion of your income. This ensures you continue to build your future corpus while managing your debt.

Strategic Investment Planning
Review Your Investment Portfolio
Review your current investments to ensure they align with your long-term goals. Are you investing in a mix of equity and debt instruments? Diversification is key to managing risk and maximizing returns.

Benefits of Actively Managed Funds
Actively managed funds can offer higher returns compared to index funds. Fund managers actively select stocks, aiming to outperform the market. This can be beneficial for growing your investments faster.

Regular Investments and SIPs
Continue with your SIPs, but ensure they are in high-performing funds. Even small, regular investments can grow significantly over time due to compounding. Review the performance of your funds periodically.

Saving for Retirement
Estimating Retirement Corpus
You aim to retire at 60, which gives you 11 years to save. Estimate how much you will need for a comfortable retirement. Consider inflation and your expected lifestyle expenses.

Increasing Retirement Contributions
If possible, gradually increase your monthly investment contributions. Even a small increase can make a big difference over time. Automate your investments to ensure consistency.

Asset Allocation for Retirement
A good mix of equity and debt can help you achieve a balance between growth and stability. As you approach retirement, gradually shift towards safer, more stable investments.

Planning for Home Purchase
Evaluating Home Purchase Decision
Buying a home worth Rs 50 lakh is a big financial commitment. Ensure it fits within your long-term financial plan without straining your finances. Consider all costs, including down payment, EMIs, maintenance, and property taxes.

Saving for Down Payment
Start saving for the down payment. Typically, a down payment is 20% of the property's value, so for a Rs 50 lakh home, you'll need Rs 10 lakh. Allocate a portion of your monthly savings towards this goal.

Home Loan Considerations
If you plan to take a home loan, compare interest rates and terms from different lenders. Aim for a shorter loan tenure to save on interest. Ensure your EMI is manageable within your monthly budget.

Tax Efficiency and Benefits
Utilizing Tax-Saving Instruments
Maximize your tax-saving investments under Section 80C. This includes contributions to PPF, EPF, and ELSS. Tax savings can enhance your overall returns and help you build a larger corpus.

Regular Fund Investments
Investing through a certified financial planner can provide professional advice. Regular funds, despite higher expense ratios, come with expert guidance, which can optimize your portfolio and returns.

Creating an Emergency Fund
Importance of an Emergency Fund
An emergency fund is crucial to cover unexpected expenses. This ensures you don't have to dip into your long-term investments during financial crises.

Building the Fund
Aim to save at least 6-12 months' worth of expenses in a liquid account. Allocate a portion of your monthly savings until you reach this target. This fund should be easily accessible in emergencies.

Insurance and Risk Management
Adequate Life Insurance
Ensure you have adequate life insurance coverage to protect your family financially. Term insurance is a good option as it provides high coverage at a low premium.

Health Insurance
A comprehensive health insurance plan is essential to cover medical emergencies. This prevents large out-of-pocket expenses that can disrupt your savings and investments.

Regular Monitoring and Rebalancing
Periodic Portfolio Review
Regularly review your investment portfolio to ensure it aligns with your goals. Markets and personal circumstances change, requiring adjustments to your strategy. A certified financial planner can assist with these reviews.

Rebalancing Your Portfolio
Rebalancing involves adjusting your investments to maintain your desired asset allocation. For example, if equities have grown significantly, sell some and reinvest in underperforming assets. This helps manage risk and stay on track with your goals.

Maximizing Your Savings
Budgeting and Expense Management
Track your expenses to identify areas where you can save more. Create a budget and stick to it. This ensures you have more funds available for investments and loan repayment.

Increasing Savings Rate
As your income grows, aim to increase your savings rate. Even small increments can significantly impact your final corpus due to the power of compounding. Automate savings to ensure consistency.

Leveraging Employer Benefits
Provident Fund Contributions
Ensure you maximize your contributions to the Employee Provident Fund (EPF). This is a safe and tax-efficient way to build your retirement corpus.

Voluntary Provident Fund (VPF)
Consider contributing to the Voluntary Provident Fund (VPF) if you can save more. VPF offers the same benefits as EPF, with guaranteed returns and tax benefits.

Long-Term Investment Strategies
Compounding Power
The power of compounding cannot be overstated. The earlier you start investing, the more your money grows over time. Regular investments and reinvesting returns accelerate growth.

Staying Invested
Market fluctuations are normal. Stay invested for the long term to ride out volatility. Equity markets tend to deliver good returns over extended periods.

Avoiding Emotional Decisions
Investment decisions should be based on logic, not emotions. Avoid making impulsive decisions based on market movements. A certified financial planner can provide an objective perspective.

Planning for Inflation and Taxes
Inflation Protection
Inflation can erode your purchasing power over time. Ensure your investments grow faster than inflation. Equities and other high-growth investments generally outpace inflation.

Tax Planning
Tax-efficient investing is crucial. Utilize available tax deductions and exemptions. For instance, investments in PPF, EPF, and certain mutual funds offer tax benefits. Consult with a tax advisor to optimize your tax strategy, ensuring you retain more of your returns.

Final Insights
Managing your personal loan, saving for retirement, and planning to buy a home are significant financial goals. With disciplined savings and strategic investments, you can achieve these goals. Focus on reducing your personal loan, maximizing your savings, and investing wisely. Regularly review and adjust your financial plan to stay on track. With consistent efforts and careful planning, you can secure a comfortable retirement and fulfill your dream of purchasing a home.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7122 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

Asked by Anonymous - Jul 11, 2024Hindi
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Hi I'm 31 yo women earning 40k month working in govt sector... I have around 2L saved in bank fd/rd, 5L in stocks and mf, I invest 13.5k pm in mf sip and since I'm covered under nps a monthly contribution of 8.3k monthly goes to my nps account...I would like to buy a house in another 5 years...how should I go about this to achieve my goal assuming the cost of home would be 75 lakhs.
Ans: Current Financial Snapshot
Age: 31 years
Monthly Salary: Rs 40,000
Savings: Rs 2 lakhs in bank FD/RD
Investments: Rs 5 lakhs in stocks and mutual funds
Monthly SIP Investment: Rs 13,500
NPS Contribution: Rs 8,300 per month
Goal: Buying a House in 5 Years
You aim to purchase a house worth Rs 75 lakhs in 5 years. Here’s how you can plan to achieve this goal.

Building Your Down Payment
Assessing Your Current Contributions
Monthly Savings in SIP: Rs 13,500
Total Monthly Investments: Rs 21,800 (including NPS)
With Rs 2 lakhs in bank savings and Rs 5 lakhs in stocks and mutual funds, you already have Rs 7 lakhs towards your goal.

Increasing SIP Contributions
Consider increasing your SIP contributions by at least Rs 5,000 per month.

This could be achieved through a combination of reducing discretionary expenses and allocating bonuses or increments towards your SIPs.

Liquidating Non-Essential Assets
If any of your stocks are underperforming or not aligned with your long-term goals, consider liquidating them.

This could give you a lump sum to invest in more stable mutual funds.

Optimizing Your Mutual Fund Portfolio
Benefits of Actively Managed Funds
Actively managed funds often outperform index funds in volatile markets.

A Certified Financial Planner (CFP) can help you choose funds that align with your risk profile and goals.

Importance of Regular Funds
Investing through a Mutual Fund Distributor (MFD) with CFP credentials provides professional advice.

This helps in better fund selection and portfolio management, potentially leading to higher returns.

Strategic Use of NPS
Utilizing Partial Withdrawals
The NPS allows partial withdrawals for purchasing a house.

After 3 years of joining, you can withdraw up to 25% of your own contributions.

This can provide a significant amount towards your down payment.

Estimating the Loan Requirement
Down Payment Calculation
Assuming a 20% down payment, you need Rs 15 lakhs upfront.

With Rs 7 lakhs already saved, you need an additional Rs 8 lakhs in 5 years.

Loan Amount
The remaining Rs 60 lakhs can be financed through a home loan.

Given your steady government job, you should be eligible for favorable loan terms.

Building an Emergency Fund
Importance of Liquidity
Ensure you maintain an emergency fund equivalent to 6-12 months of expenses.

This should be kept in liquid funds or a high-interest savings account for easy access.

Reviewing Insurance Needs
Surrendering LIC/ULIP Policies
If you hold any LIC or ULIP policies, consider surrendering them.

Reinvest the proceeds into mutual funds for better returns.

Adequate Health and Life Coverage
Ensure you have sufficient health insurance beyond your employer’s coverage.

A term life insurance plan is also essential to protect your family’s financial future.

Monitoring and Adjusting Your Plan
Regular Reviews
Regularly review your investment portfolio with a Certified Financial Planner.

This ensures your investments remain aligned with your financial goals and market conditions.

Adjusting Contributions
As your income increases, consider increasing your SIP contributions proportionately.

This accelerates your savings and helps you achieve your goal faster.

Final Insights
Achieving your goal of buying a house worth Rs 75 lakhs in 5 years is feasible with disciplined saving and investing.

By optimizing your mutual fund portfolio, utilizing NPS benefits, and maintaining an emergency fund, you can build a substantial down payment.

A home loan can cover the remaining amount, ensuring you secure your dream home within the desired timeframe.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Dr Nandita Palshetkar  |13 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Nov 26, 2024

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Hello mam, I am a girl 18years old I had pcod since my period started I got my period when I was 13years that time everything was ok but after few months I was bleeding heavy getting menses 2-3in a month so my mom got very worried and she takes me to a gynaecologist and she prescription and tablets like "novelon"and then I am ok but after that I didn't get my periods for few months and also that time lockdown happened so we can't go to a gynaecologist and then after everything got normal and hospitals we go to the doctor and she asked from how many time you don't get your menses and then I replied from past 6months and she shouted on me and immediately told me to have ultrasound and after seeing the reports she said you have pcod then the rest of the story you know I am still suffering from this disease I don't get my periods if I don't take the tablets now I can't understand what to do even I changed a lot of gynaecologists but nothing happened and they this is a incurable disease you have to take tablets for lifetime and also I am not even financially strong
Ans: Polycystic ovary syndrome (PCOS) is a hormonal condition that can cause irregular or absent menstrual periods.
Higher amounts of androgens in PCOS can interfere with egg development and ovulation, leading to skipped or absent periods.
One of the best ways to cope with PCOS is to maintain a healthy bodyweight, eat nutritious foods and exercise regularly.
LIFESTYLE CHANGES:
Eating healthy foods, exercising regularly, and maintaining a healthy weight can help regulate your menstrual cycle
BIRTH CONTROL PILLS:
Combination oral contraceptives (COCs) can help regulate menstrual periods and treat acne and hirsutism. It can take up to six months to see if birth control is effective.
ANTIESTROGENS:
These medicines can help with skin and hair growth problems
METFORMIN
This diabetes medicine can help control ovulation and androgen levels, which can make menstrual cycles more regular
Supplements containing
Myo ionositol, chirositol, vitamin D, chromium also helps in maintaining pco

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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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