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Ramalingam

Ramalingam Kalirajan  |9712 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 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
Prahlad Question by Prahlad on Jun 23, 2024Hindi
Money

I am now 62 and retired. Having 1.75 cr in Mutual fund, 20 lacks in scsc, 10 lacks in gold,40 lack in equity and 5 lack in liquid. Need 1.5 lack SWP for monthly expenses. Pl suggest where should I invest and get monthly of 1.5 lack without reducing my investment

Ans: Congrats on your retirement and your well-structured investment portfolio. With Rs 1.75 crores in mutual funds, Rs 20 lakhs in SCSS, Rs 10 lakhs in gold, Rs 40 lakhs in equity, and Rs 5 lakhs in liquid funds, you have a diversified portfolio. Your goal of generating Rs 1.5 lakhs monthly without reducing your capital is achievable with strategic planning.

Understanding Your Financial Goal
Monthly Withdrawal Requirement:

You need Rs 1.5 lakhs per month, which amounts to Rs 18 lakhs annually.

Current Portfolio:

Mutual Funds: Rs 1.75 crores
SCSS: Rs 20 lakhs
Gold: Rs 10 lakhs
Equity: Rs 40 lakhs
Liquid Funds: Rs 5 lakhs
Strategic Investment Allocation
To generate a monthly income of Rs 1.5 lakhs, we need to optimize your portfolio to ensure both growth and stability.

Utilizing Systematic Withdrawal Plan (SWP)
1. SWP from Mutual Funds:

SWP from mutual funds can provide a steady monthly income. You can set up an SWP to withdraw Rs 1.5 lakhs monthly.

Benefits of SWP:

Regular income stream.
Tax-efficient.
Keeps your capital growing.
Allocating Your Portfolio for Optimal Returns
1. Debt Mutual Funds:

Allocate a significant portion to debt mutual funds. They provide stability and regular income.

Suggested Allocation:

60% in Debt Funds: Rs 1.05 crores in debt mutual funds.
40% in Equity Funds: Rs 70 lakhs in equity mutual funds.
This ensures a balanced approach with stability and growth.

Enhancing Your Current Investments
1. SCSS (Senior Citizens' Savings Scheme):

SCSS provides guaranteed returns and regular income. Continue to keep Rs 20 lakhs in SCSS.

2. Gold Investments:

Gold is a good hedge against inflation. Maintain your Rs 10 lakhs in gold for diversification.

3. Direct Equity:

Your Rs 40 lakhs in direct equity can be left for long-term growth. Monitor and rebalance periodically.

4. Liquid Funds:

Rs 5 lakhs in liquid funds acts as your emergency fund. This should cover any immediate financial needs.

Implementing the Systematic Withdrawal Plan
1. Setting Up SWP:

Set up an SWP from your debt mutual funds. Withdraw Rs 1.5 lakhs monthly. This provides a steady income stream while preserving your capital.

2. Rebalancing:

Review and rebalance your portfolio annually. Shift some gains from equity to debt to maintain the 60-40 allocation. This ensures stability and growth.

Managing Risks and Ensuring Growth
1. Diversification:

Diversify your investments within debt and equity mutual funds. Choose funds from different categories and sectors to spread risk.

2. Regular Review:

Review your investments quarterly. Monitor performance and make adjustments if needed. Regular reviews keep your portfolio aligned with your goals.

3. Professional Guidance:

Consider consulting a Certified Financial Planner. They can provide tailored advice and help you make informed decisions.

Tax Efficiency
1. Tax on SWP:

SWP withdrawals from mutual funds are more tax-efficient than traditional fixed deposits. Only the capital gains portion is taxed.

2. Long-term vs Short-term Gains:

Hold your equity investments for more than a year to benefit from long-term capital gains tax rates, which are lower than short-term rates.

Contingency Planning
1. Emergency Fund:

Keep an emergency fund to cover at least six months of expenses. This ensures you don’t have to withdraw from your investments during market downturns.

2. Health Insurance:

Maintain comprehensive health insurance to cover medical emergencies. This prevents erosion of your savings due to unexpected medical expenses.

Creating a Sustainable Income Plan
1. Estimating Expenses:

Estimate your monthly expenses during retirement. Consider inflation and potential lifestyle changes to ensure you have a realistic figure.

2. Planning for Longevity:

Plan for a longer retirement period. Ensure your investments can support you through your expected lifespan.

3. Considering Health and Medical Costs:

Healthcare costs tend to rise with age. Ensure you have adequate savings and insurance to cover medical expenses during retirement.

Building a Robust Financial Plan
1. Set Clear Financial Milestones:

Break down your retirement goal into smaller, achievable milestones. Track your progress and adjust your strategy as needed.

2. Budget and Save Aggressively:

Maintain a disciplined approach to budgeting and saving. Allocate a significant portion of your income towards investments to accelerate wealth accumulation.

3. Maximize Tax-Advantaged Investments:

Utilize tax-advantaged accounts like PPF and NPS to enhance returns and save on taxes. These are excellent for long-term savings with added tax benefits.

Final Insights
Your diversified portfolio and strategic investments can help you achieve your goal of withdrawing Rs 1.5 lakhs monthly. Utilize an SWP from a balanced portfolio of debt and equity mutual funds. Ensure diversification, regular review, and rebalancing to manage risk and grow your corpus. With disciplined planning and strategic investments, you can enjoy a steady income and financial security in retirement.

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, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 16, 2024Hindi
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Hello Sir , I have 40 lakhs lump sum with me. where as I invested 20 lakhs in mutual fund..Plz suggest me where i can invest remaining 20 lakh amount for monthly income as well future retirement planning purpose also. please guide me.
Ans: It's great to see your proactive approach to financial planning. Let's explore some options for investing your remaining 20 lakhs:

• Firstly, kudos on investing 20 lakhs in mutual funds. They offer growth potential and can play a vital role in your investment portfolio.

• For generating monthly income, consider fixed income options like bonds, fixed deposits, or debt mutual funds.
• These investments provide regular interest or dividends, offering a steady stream of income for your needs.

• To ensure future retirement planning, consider a combination of growth and income-generating investments.
• Equity mutual funds can provide long-term growth potential, while balanced funds offer a mix of equity and debt for stability.

• Additionally, explore retirement-focused investment vehicles like National Pension Scheme (NPS) or Pension Plans offered by insurance companies.
• These instruments offer tax benefits and provide a corpus for retirement income.

• Remember to diversify your investments across asset classes to mitigate risk and maximize returns.
• Consult with a Certified Financial Planner to tailor an investment strategy aligned with your financial goals and risk tolerance.

• Keep in mind that investing is a journey, and it's essential to review and adjust your portfolio regularly.
• Stay focused on your long-term financial objectives, and don't hesitate to seek professional advice when needed.

• With careful planning and disciplined investing, you can build a robust investment portfolio that supports your financial goals.
• Congratulations on taking this important step towards securing your financial future! Keep up the good work!

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Ramalingam Kalirajan  |9712 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 02, 2024Hindi
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Hi, I'm 35 yrs I can invest 25000-50000 per month, where should i invest. I can take moderate risk, 10yrs time horizon, I invested 10lakhs in direct shares already. Investing in Mirae ELSS monthly 4000rupees Not invested in any other mutual funds. I earn monthly 1 lakh, no emi, i can save 80k per month, let me know where i can invest 25-50k monthly
Ans: It's great to see your proactive approach to investing and your willingness to explore additional investment avenues. Given your risk tolerance, time horizon, and monthly saving capacity, mutual funds can be an excellent option to diversify your portfolio and potentially enhance returns over the long term. Here's a suggested approach for your monthly investments of 25,000 to 50,000 rupees:

Increase SIP Investment:
Since you're already investing in Mirae ELSS with a monthly SIP of 4,000 rupees, consider increasing your SIP amount in this fund or adding SIPs in other mutual funds.
Diversify Across Fund Categories:
Allocate your monthly investment across different categories of mutual funds to diversify your portfolio and manage risk effectively.
Consider investing in large-cap, mid-cap, and multi-cap funds to gain exposure to different segments of the market.
Consider Systematic Investment Plans (SIPs):
SIPs offer the advantage of rupee cost averaging and disciplined investing, making them suitable for long-term wealth creation.
You can start SIPs with varying amounts in different funds based on your risk appetite and investment objectives.
Fund Selection:
Choose mutual funds with a proven track record of consistent performance, experienced fund managers, and a robust investment process.
Look for funds with low expense ratios and high-quality portfolios that align with your investment goals and risk profile.
Regular Monitoring and Review:
Keep a close eye on the performance of your mutual fund investments and regularly review your portfolio to ensure it remains aligned with your financial objectives.
Make adjustments to your investment strategy as needed based on changes in market conditions, your risk tolerance, and investment goals.
Seek Professional Advice:
Consider consulting with a financial advisor or Certified Financial Planner to develop a customized investment plan tailored to your specific needs and goals.
A professional can provide valuable insights and guidance to help you make informed investment decisions and navigate the complexities of the financial markets.
By diversifying your investments across mutual funds and adopting a disciplined approach to investing, you can potentially achieve your financial goals and build wealth over the long term. Remember to stay patient, stay focused on your long-term objectives, and avoid making impulsive investment decisions.

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Ramalingam Kalirajan  |9712 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 23, 2024

Asked by Anonymous - Jul 03, 2024Hindi
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Sir, I am retired person of 66 years. I have 22 Lakhs in Mutual Fund in SWP plan, get monthly rent Rs. 12000. I am soon going to get Rs. 1.5 Cr. (After tax) after selling property. I am staying in my Flat. I want you to Suggest me where i invest so that i get regular income & appreciation. I have mediclaim of Rs. 5 Lakhs jointly for my wife & me
Ans: At 66 years old, you are retired and living in your own flat. You currently have Rs. 22 lakhs in a Mutual Fund Systematic Withdrawal Plan (SWP) and receive a monthly rent of Rs. 12,000. Soon, you will receive Rs. 1.5 crore after selling your property, and you have a mediclaim policy of Rs. 5 lakh covering both you and your wife.

Understanding Your Financial Goals
Your primary goal is to secure a regular income while also ensuring that your investments appreciate over time. This is crucial to maintaining your lifestyle, accounting for inflation, and providing for any unforeseen expenses.

Importance of Regular Income and Capital Preservation
At your age, preserving capital while generating a steady income is paramount. The focus should be on low-risk investments that provide consistent returns while also offering some growth potential.

Diversified Investment Strategy
To meet your objectives, it’s essential to diversify your investments. Diversification helps in balancing risk and ensuring that your portfolio remains stable even if certain investments underperform.

1. Debt Mutual Funds (40%)
Debt funds are ideal for conservative investors. They offer regular income with lower risk compared to equity.

Consider investing in debt funds that focus on high-quality bonds. This ensures stability and regular payouts.

SWP from these funds can provide you with a steady monthly income.

2. Senior Citizen Savings Scheme (SCSS) (20%)
SCSS is a government-backed scheme offering regular interest payments.

It’s a safe investment option with decent returns, ideal for your regular income needs.

The interest is payable quarterly, which can supplement your monthly income.

3. Monthly Income Plans (MIPs) (20%)
MIPs invest in a mix of debt and equity, providing a balance between income and growth.

They offer regular monthly income, though the returns may fluctuate slightly based on market conditions.

This can be a good addition to your portfolio for some equity exposure with lower risk.

4. Fixed Deposits (FDs) (10%)
FDs offer safety and guaranteed returns. Although the interest rates are low, they provide assured income.

Keep a portion of your funds in FDs for immediate liquidity and safety.

5. Equity Mutual Funds (10%)
While equity carries higher risk, a small allocation is essential for growth and beating inflation.

Focus on conservative equity funds that invest in large-cap companies with stable performance.

This portion should be for long-term growth rather than immediate income.

Managing the Rs. 1.5 Crore Corpus
With the Rs. 1.5 crore corpus, a balanced approach to allocation is important:

Rs. 60 lakh in Debt Mutual Funds to generate steady income.

Rs. 30 lakh in SCSS for regular quarterly interest.

Rs. 30 lakh in MIPs for a mix of income and growth.

Rs. 15 lakh in Fixed Deposits for safety and liquidity.

Rs. 15 lakh in Equity Mutual Funds for long-term growth.

Health Insurance Consideration
Your current mediclaim policy of Rs. 5 lakh might not be sufficient, considering rising healthcare costs. Consider enhancing your coverage or opting for a top-up plan that provides additional coverage at a lower premium.

Final Insights
Your financial plan should focus on generating regular income, preserving your capital, and allowing for some growth to counter inflation. By diversifying your investments across debt, equity, and fixed-income instruments, you can achieve a balanced portfolio that meets your income needs while also offering potential for appreciation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Radheshyam Zanwar  |5298 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jul 13, 2025

Asked by Anonymous - Jul 13, 2025Hindi
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I have got CS core in VIT Vellore. I know many VITians who are doing much better professionally than some of their IIT/NIT counterparts. VIT CS labs are very advanced, I have heard. Many 98+percentilers in JEE Mains are in VIT CS. Placements are good. Despite this why is there a general notion that if an institute is private (barring BITS) it's not as good as a govt. institute.
Ans: Hello dear.
You're right to question the common perception, and your insights about VIT Vellore’s CS program are grounded in reality. The Computer Science department at VIT Vellore is among the strongest in private engineering colleges, with advanced lab facilities. Many top JEE Main percentilers (even above 98) choose VIT. Several VITians have gone on to have excellent careers, sometimes even outperforming their IIT/NIT counterparts largely because of their individual initiative, internships, and skill-building. IT, especially if they narrowly miss out on NITs or prefer the modern infrastructure and course flexibility that VIT offers.
Despite these strengths, private colleges in India often face bias. This stems from the legacy and prestige of government institutions like IITs/NITs, which admit students through highly competitive exams and are seen as more merit-driven. In contrast, private colleges are sometimes viewed as less rigorous or overly reliant on high fees and donations, leading to skepticism about their quality.
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Good luck.
Follow me if you receive this reply.
Radheshyam

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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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