Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |8292 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 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 04, 2024Hindi
Listen
Money

There is about 9lacs in my daughter PPF account. after one renewal the period of 20 years is over. What are the options for investing if she withdraw the amount? Minimum five years investment

Ans: Congratulations on successfully completing the 20-year tenure of your daughter's PPF account! Now, let's explore the options for investing the proceeds.

Understanding Investment Goals:

Before proceeding, it's essential to clarify your investment objectives, risk tolerance, and time horizon. What are your financial goals for the next five years?

Analyzing Investment Options:

Equity Mutual Funds: Equity mutual funds offer the potential for high returns over the long term but come with higher volatility.

Debt Mutual Funds: Debt mutual funds invest in fixed-income securities like bonds and offer relatively stable returns with lower risk compared to equities.

Balanced Funds: Balanced funds invest in a mix of equities and debt instruments, providing a balanced approach to growth and stability.

Fixed Deposits: Fixed deposits offer a guaranteed rate of return and are suitable for conservative investors seeking capital preservation.

Systematic Investment Plans (SIPs): SIPs allow you to invest regularly in mutual funds, harnessing the power of compounding to build wealth over time.

Assessing Risk and Return:

Consider your risk tolerance and investment horizon when selecting investment options. Equity investments offer higher potential returns but come with higher risk, while debt instruments provide stability but lower returns.

Consultation with a Certified Financial Planner:

Engage with a Certified Financial Planner (CFP) to assess your financial goals and risk profile accurately. A CFP can recommend a customized investment strategy aligned with your objectives.

Conclusion:

In conclusion, various investment options are available for deploying the proceeds from your daughter's matured PPF account. By considering your investment goals, risk tolerance, and time horizon, you can select the most suitable investment avenue.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |8292 Answers  |Ask -

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

Money
I've started a PPF account and it got matured in 2019 and extended it for 5 years. The maturity value would be around 10L by Mar 25. I want to invest the maturity amount for further 3 years for the purpose of my daughter's college admission (2028). Please suggest whether I can withdraw it and invest it elsewhere (your expert opinion here pls) or continue for further 5 years and withdraw partially - which one is best?
Ans: Evaluating Your PPF Investment Strategy
At this stage, you have a matured PPF account, extended for five years, maturing again in March 2025 with an estimated value of Rs. 10 lakhs. Your objective is to invest this amount for three years to fund your daughter's college admission in 2028. Let’s evaluate the best options for you.

Understanding PPF Extension Benefits
Safety and Returns:

PPF is a government-backed scheme offering tax-free returns. Extending PPF ensures continued safety and stable returns without market risks.

Flexibility:

After the extension, you can withdraw partially or the full amount as needed. This flexibility can be beneficial for short-term goals.

Interest Rate:

The current PPF interest rate is attractive compared to other fixed-income instruments. Extending the PPF can help accumulate additional interest without tax implications.

Alternatives to PPF Extension
While PPF is a safe and reliable option, other investments could offer higher returns for your three-year investment horizon. Let’s explore these options.

Short-Term Debt Mutual Funds
Advantages:

Higher Returns: Debt funds typically offer higher returns than fixed deposits and PPF for short-term investments.
Liquidity: Easy to redeem and usually no lock-in period.
Tax Efficiency: If held for more than three years, gains are taxed at a lower rate due to indexation benefits.
Considerations:

Market Risks: Though low, there are some market risks involved compared to PPF.
Tax on Gains: Short-term capital gains are taxed as per your income tax slab.
Fixed Maturity Plans (FMPs)
Advantages:

Predictable Returns: FMPs invest in fixed-income securities maturing at the same time as the plan.
Tax Efficiency: Held for over three years, they benefit from indexation, reducing tax liability on gains.
Considerations:

Lock-In Period: Limited liquidity due to fixed tenure.
Lower Returns: Slightly lower returns compared to other debt funds.
Recurring Deposits (RD) or Fixed Deposits (FD)
Advantages:

Safety: Guaranteed returns with minimal risk.
Fixed Returns: Interest rates are locked in, providing predictable income.
Considerations:

Tax on Interest: Interest earned is taxable as per your income tax slab.
Lower Returns: Typically offer lower returns compared to debt funds.
Making the Decision
Based on your need for the funds in 2028, here are some considerations to help you decide between continuing the PPF extension or withdrawing and reinvesting elsewhere.

Continue PPF Extension
Benefits:

Safety and Stability: Guaranteed returns with no market risk.
Tax-Free Interest: Continued tax-free interest accumulation.
Drawbacks:

Moderate Returns: Potentially lower returns compared to other investment options.
Withdraw PPF and Reinvest
Option 1: Short-Term Debt Mutual Funds

Higher Potential Returns: Offers better returns compared to PPF and fixed deposits.
Liquidity and Flexibility: Easier to withdraw funds when needed.
Option 2: Fixed Maturity Plans (FMPs)

Predictable Returns: Provides a clear understanding of expected returns.
Tax Efficiency: Beneficial tax treatment if held for more than three years.
Option 3: Fixed Deposits or Recurring Deposits

Safety and Security: Guaranteed returns with minimal risk.
Lower Potential Returns: Typically lower returns than debt mutual funds.
Recommended Strategy
Considering your goal of funding your daughter’s college education in 2028, a combination of safety and potential returns is crucial.

Suggested Approach:

Partial PPF Withdrawal: If liquidity is needed before 2028, consider withdrawing a portion of your PPF and reinvesting in short-term debt mutual funds or FMPs for higher returns.
Continue PPF: For the remaining amount, continue with the PPF extension to benefit from guaranteed, tax-free returns.
Example Strategy Breakdown
Option 1: Partial Withdrawal and Reinvestment

Withdraw Rs. 5 lakhs from PPF: Invest this amount in a short-term debt mutual fund or an FMP.
Continue Rs. 5 lakhs in PPF: Benefit from stable, tax-free returns.
Option 2: Full PPF Continuation

Continue Rs. 10 lakhs in PPF: Ensure guaranteed, tax-free returns until 2028.
Plan for Partial Withdrawals: Utilize PPF’s partial withdrawal option if needed before 2028.
Conclusion
Balancing safety, liquidity, and returns is key to achieving your goal. By combining partial PPF continuation with strategic reinvestment in higher-yielding instruments, you can optimize your investment for your daughter’s college admission.

Key Points:

Evaluate Your Risk Tolerance: Ensure your investment choice aligns with your risk appetite.
Consider Tax Implications: Factor in the tax benefits and liabilities of each investment option.
Review Regularly: Monitor your investments periodically to ensure they are on track to meet your goals.
By carefully selecting your investment strategy, you can achieve the necessary funds for your daughter’s education while balancing risk and return.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4465 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
Jee main 2025,my son got 95.2%tile,71104 rank ,ews rank 10111,home state punjab ,can he get cse,ece,data science,it, branch in any nit,iiit,gftis or which branches he will get in these institutes .
Ans: Varinder Sir, Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4465 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
My son got 93.4 percentile jee main . He got eee bit mesra and cse in srm ktr which prospect is better?
Ans: Sharmistha Madam, prefer BIT-M-EEE. Explore more options for your daughter as back-ups by knowing the JoSAA Counselling Opening & Closing Ranks of last year. Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'

Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories both Home State (HS) i.e. State you belong to & also Other State (OS).
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in, separately for HS & OS Categories for a quick reference.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Prof Suvasish

Prof Suvasish Mukhopadhyay  |598 Answers  |Ask -

Career Counsellor - Answered on Apr 27, 2025

Career
I have already appeared for the JEE Main and secured a 95.15 percentile, which is close to the previous year's cut-off. My query is whether it is possible to select both options JEE and NFATso that if I do not qualify through my JEE score, my application can be considered based on my NFAT score instead. If selecting both options is permissible, could you please guide me on how to do so while filling out the application form? Your assistance on this matter would be greatly appreciated.
Ans: No, candidates cannot apply using both JEE Main and NAFT scores for the same admissions. JEE Main scores are used for admissions to engineering programs at NITs, IIITs, and other participating institutions, while NAFT scores are used for admissions to NAFT-affiliated universities. These are distinct admission processes, and only one set of scores can be used.

...Read more

Radheshyam

Radheshyam Zanwar  |1577 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Apr 27, 2025

Career
hello sir, so i was a neet aspirant gave neet 2 times but did not get qualified...i was doing bsc in biology simultaneously..but the problem is i am not a regular student...all i did was give exams for bsc....now i don't know what to do....i have a thought of going for ssc cgl and then preparing for upsc if i land a job through ssc....but it would be tough to make a transition from neet ssc cgl...but im adamant to do it...please share your thoughts regarding my situation?
Ans: Hello Divyanshi.
Here is a pointwise reply to your current situation: (1) If possible, consider dropping the idea of NEET as you have tried twice but didn't succeed, (2) Focus on your B.Sc. and aim to become a regular student to achieve a high percentile in the exam. B.Sc. Biology has wide applications in both industries and academia. (3) There is no point in joining a job based on SSC as it would likely create further frustration for you. (4) Along with your B.Sc., consider learning some industry-based and computer courses if you are interested. (5) If you have a computer and a Wi-Fi connection at home, you can access many free online courses on the Coursera website. (6) You can also try for public service commission examinations while preparing for your B.Sc. (7) Recognize your strengths and the knowledge you possess, and focus your job search in that sector/area for a successful career. In this modern era, it is not difficult to find a job if someone is an expert in their field.
Follow me if you like the reply. Thanks
Radheshyam

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x