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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Apr 25, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
Asked by Anonymous - Apr 06, 2023Hindi
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Good afternoon. Please inform what should be corpus fund available for following situation - Family of 2, age 55 Years, no loans, own house, current monthly expenses Rs. 60K, life expectancy say up to 80 years (if all goes well) and retirement in 4 years.

Ans: Good afternoon! As a financial advisor, I understand the importance of planning for a comfortable retirement. Based on the information provided, here's a suggestion for the corpus fund required for your retirement.

Considering you have 4 years until retirement at the age of 59 and a life expectancy of up to 80 years, you will have about 21 years of retired life.

Your current monthly expenses are Rs. 60,000. We need to account for inflation, which has an impact on your future expenses. Let's assume an average inflation rate of 6% per year. After 4 years, your monthly expenses would be:

60,000 * (1 + 0.06)^4 ≈ Rs. 80,281

Now, let's calculate the total corpus required for 21 years of retirement life considering the same 6% inflation rate and an annual return of 7% on your investments:

Corpus required = (80,281 * (1 - (1 + 0.06)^(-21))) / (1 - (1 + 0.07)/(1 + 0.06)) ≈ Rs. 1,93,47,956

Hence, you would need a corpus fund of approximately Rs. 1.93 crores at the time of your retirement to sustain your lifestyle for 21 years.

Please note that these are rough estimates based on the information provided, and you may want to consider other factors such as healthcare costs and lifestyle changes. It's always a good idea to consult with a professional financial advisor for a more personalized and accurate plan.
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

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

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Hi Abhishek, considering I have two daughter aged 8 and 4, I would like to have a corpus fund of 1 - 2 crore by the time they turn 18 for their education. Can u suggest some funds that I can make a lumpsum investment of INR 10 Lacs or multiple funds where average of 20000 per month can be invested for 5 years. Current investment is with Canara Robeco Small Cap Fund Direct Growth with 10000 Per Month and Mirae Asset Emerging Bluchip Fund Direct Growth 2500 Per Month
Ans: Planning for your daughters' education is a wise decision. To build a corpus of 1 - 2 crores over the next decade, you have various options for lump sum and SIP investments.

For a lump sum investment of 10 lakhs, you might consider allocating it across a mix of equity and debt funds to balance risk and return. Equity funds typically have higher potential returns but also higher volatility, while debt funds offer stability but lower returns.

Here's a potential allocation:

Equity Funds (70%): Invest 7 lakhs in a mix of large-cap, mid-cap, and multi-cap funds for long-term growth potential.
Debt Funds (30%): Allocate 3 lakhs to debt funds for stability and capital preservation.
For SIP investments of 20,000 per month for 5 years, you can diversify across various mutual funds to spread risk and optimize returns. Here's a suggested allocation:

Large-cap Funds: 40% of SIP amount
Mid-cap Funds: 20% of SIP amount
Multi-cap Funds: 20% of SIP amount
Debt Funds: 20% of SIP amount
Remember to review your portfolio periodically and adjust your investments based on changing market conditions and your daughters' education timelines. Consider consulting with a certified financial planner for personalized advice tailored to your specific goals and risk profile.

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Ramalingam

Ramalingam Kalirajan  |8104 Answers  |Ask -

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

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Hi Anil, considering I have two daughter aged 8 and 4, I would like to have a corpus fund of 1 - 2 crore by the time they turn 18 for their education. Can u suggest some funds that I can make a lumpsum investment of INR 10 Lacs or multiple funds where average of 20000 per month can be invested for 5 years. Current investment is with Canara Robeco Small Cap Fund Direct Growth with 10000 Per Month and Mirae Asset Emerging Bluchip Fund Direct Growth 2500 Per Month
Ans: Your goal of creating a corpus fund for your daughters' education is admirable. With a well-planned strategy, you can achieve this target.

Current Investment Overview

You are investing Rs 10,000 per month in Canara Robeco Small Cap Fund and Rs 2,500 per month in Mirae Asset Emerging Bluechip Fund. These funds are strong performers in their categories, which is a good start.

Lump Sum Investment Strategy

Investing Rs 10 lakhs as a lump sum can provide a solid foundation. Consider allocating this amount across multiple funds to diversify and reduce risk. Choose funds with a mix of large-cap, mid-cap, and small-cap exposure.

Monthly SIP Investment Strategy

To build a corpus of Rs 1-2 crore, a disciplined SIP approach is crucial. You can invest Rs 20,000 per month across a diversified set of funds. This systematic approach allows you to benefit from rupee cost averaging and market volatility.

Optimising Fund Selection

Evaluate funds with consistent performance, lower expense ratios, and good historical returns. Diversify across equity, hybrid, and debt funds to balance growth and stability. This blend maximises potential returns while managing risk.

Advantages of Actively Managed Funds

Actively managed funds offer professional oversight, adapting to market changes. This flexibility can result in higher returns compared to index funds, which simply track market indices.

Disadvantages of Index Funds

Index funds lack the professional management that actively managed funds provide. They may not perform well during market downturns, limiting potential returns.

Benefits of Investing through a Certified Financial Planner

A Certified Financial Planner can provide personalised advice and select funds tailored to your goals. They offer expertise in creating a balanced and effective investment portfolio.

Risks of Direct Funds

Direct funds may seem appealing due to lower expense ratios, but they lack the professional guidance available through regular funds. Investing through a certified planner ensures informed decision-making and portfolio management.

Periodic Review and Rebalancing

Regularly reviewing and rebalancing your portfolio ensures it remains aligned with your financial goals. This approach helps optimise returns and manage risks effectively.

Creating a Comprehensive Financial Plan

In addition to mutual funds, consider other aspects like emergency funds, insurance, and tax planning. A holistic financial plan ensures a secure and well-rounded approach to your financial goals.

Monitoring Market Trends

Stay informed about market trends and economic factors. This knowledge helps you make timely adjustments to your investments, maximising returns and mitigating risks.

Conclusion

Your dedication to investing for your daughters' education is impressive. By strategically allocating your lump sum and SIP investments, and seeking professional guidance, you can achieve your goal of building a substantial corpus for their future education needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan  |8104 Answers  |Ask -

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

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Hi Abhishek, considering I have two daughter aged 8 and 4, I would like to have a corpus fund of 1 - 2 crore in 10 yrs. Can u suggest some funds that I can make a lumpsum investment of INR 10 Lacs or multiple funds SIP where average of 40000 to 50000 per month can be invested for 5 years. Current investment is with Canara Robeco Small Cap Fund Direct Growth with 10000 Per Month and Mirae Asset Emerging Bluchip Fund Direct Growth 2500 Per Month
Ans: Considering your goal of building a corpus fund of 1-2 crore in 10 years for your daughters' future, there are a few approaches we can consider. Here are some options:

Lump Sum Investment:
You can consider allocating your lump sum of INR 10 lakhs across a diversified portfolio of mutual funds. Here are some categories you may want to explore:

Large Cap Funds
Mid Cap Funds
Multi Cap Funds
Balanced Advantage Funds
It's important to diversify your investments across different asset classes and fund categories to mitigate risk. You can consult with a financial advisor to tailor the allocation based on your risk tolerance and investment objectives.

SIP Investments:
For SIP investments averaging between INR 40,000 to 50,000 per month for 5 years, you have a substantial amount that can be spread across different funds. Here's a suggested allocation:

Large Cap Funds: 40-50%
Mid Cap Funds: 20-30%
Small Cap Funds: 10-20%
Balanced Advantage Funds: 10-20%
By diversifying your SIP investments across these categories, you can benefit from the growth potential of different segments of the market while managing risk. Ensure you review and rebalance your portfolio periodically to align with your financial goals and market conditions.

Remember, it's crucial to conduct thorough research or seek advice from a financial advisor before making any investment decisions. Additionally, consider factors such as your risk appetite, investment horizon, and financial goals when selecting funds.

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Radheshyam

Radheshyam Zanwar  |1440 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 17, 2025

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My daughter is completed her 1 PUC and has started with 2nd PUC. In college they have started with CET coaching. She is a good swimmer and want to pursue water Polo and wants to go coaching in the morning. She tells 'I don't want to write CET. I don't want to pursue Engineering. I want to take up Marine Biology. I don't neet CET for that. I will study only for Board exam and pursue Swimming classes in the morning' We wanted her to take up CET to keep Engg as an option as Marine Biology is a niche field and might be difficult to land on a job as we have less scope in India She has made it clear if you force me i will not read and write exam without reading. Actually she is capable of writing CET, but she do not want to and she is not reading. Her focus is only on swimming
Ans: Hello Aruna.
If your daughter is passionate about swimming and water polo, encourage her to continue. Support her participation in national and international competitions. If she excels in these sports and obtains a valid certificate, she may secure a government job directly after graduation in the respective field. IIT Madras has even reserved two seats for sports candidates, meaning there is no need to take the JEE (Advanced). For more details, please visit the website: ugadmissions.iitm.ac.in/scope.
As a parent, your concerns are valid. If she fails to excel in her passion, what will happen to her future? It would be wise to suggest that she attempt the state-level CET entrance examination, even without preparation. Just ask her to submit the answer sheet with random answers. Even if she scores the minimum marks, she can still gain admission to a reputable engineering college through the management quota. If she is not willing to listen to you, it may be beneficial to take her for personal counseling. It raises the question of what she is doing with the remaining hours after spending one, two, or three hours swimming. If she is hesitant to join classes, consider hiring personal tutors to keep her engaged with the syllabus and studies. While a career in sports is possible, for many, it remains just a dream. The journey is quite challenging, and in most cases, strong political connections are needed to advance in sports. Your daughter might be unaware of this reality at a young age. It is advisable to explain these truths to her so that she understands the challenges ahead. Thank you.
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My age is 25 years and my boyfriend age is 29 years. I have boyfriend and we are dating for around 2 years, we are thinking about marriage. My family members love him and his family members love me. But the situation is like this that, my elder sister is getting divorce so it will take time atleast 4 years. But we can't wait for 4 years because my boyfriend is from gujarat. So in Gujarat, families dont wait for long but in my case my boyfriend and his family members waited for 2 years. Because my family members are saying when my elder sister will get married then after my marriage will come. and my family members are brain washing me and my boyfriend saying that first elder sister should get married if it takes times 6 years still u have to wait. My family members are pressurizing me alot. Infact I discuss and my boyfriend discuss with my family members about the situation but my family is not understanding and they are just pressurizing me alot and making my life hell. Even my elder sister is saying to me that my colleagues are not getting married why u have to get married soon. But my point is that I m not kid I m 25 years old and because of her I m suffering alot because if she cant get married I cant get married this wrong. And because of taht me and boyfriend are arguing alot in this. Like If i waited for my elder sister divorce plus her marriage it will take around 4 years. But I dont think so this is right because of my elder sister I m facing issues and thats wrong. Because i dont know whether after divorce she will get married or not. So because of her I m suffering alot. And the divorce procedure will take 4 - 6 years. Because we dont know that how much time will it take for my elder sisters divorce because she is not doing normal one she has cased a file against jiju so thats why it huge procedure. So that's why we think that we will do court marriage in next month. We both have a support from his family members. His family members are saying that do court marriage without knowing any ones relatives and once your family agrees within this year then its fine but if not then you come here next year and we will do marriage for both of you. So this is right?
Ans: Dear Anonymous,
You need to make a decision for yourself after looking at all the pros and cons. How are you going to be able to handle your parents once you make the decision to go ahead with the marriage?
Also, on your part, you are right in asking, how long do you need to wait?
Before making a decision, always think far ahead as to how your environment will react and how you are going to handle all of it.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Anu Krishna  |1557 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 17, 2025

Asked by Anonymous - Mar 09, 2025Hindi
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Relationship
Hi Mam, My parents are not agreeing for the marriage with my boyfriend cause it's an interfaith relation. I tried convincing them but they keep on saying foul words to me, saying that they would kill themselves if I don't leave him. I had seen my family from childhood and I don't want to be in a similar situation as they are, my mother had a relationship with someone else after marriage, my sister is not the biological child of my father, I am aware of all those but I haven't blamed them for that cause I felt if that's what is making them happy let them be, I haven't even confronted them. Now they say all the good stuff that me and your father were very great to each other you should learn those things and all. I am struck in a situation now. I have a job and my boyfriend also has one, could you please suggest.
Ans: Dear Anonymous,
Judging your parents and their choices is not going to anyway help you in your context. So, why even go there?
Instead focus on your situation and how you can make things happen for yourself.
- Are you financially independent and will you be able to manage the discomfort that will emerge once you choose to be on your own?
- Will your boyfriend support your decision and will he stand by you when you go against your family?
- What does his side of the family have to say about all of this?
If you notice the questions above, none of them are set to 'convince' your family. It is almost impossible to convince someone who does not want to be convinced. These questions will give you an idea and enable to handle your situation by stepping up for yourself.

All the best!
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Drop in: www.unfear.io
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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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