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Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 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 - Oct 01, 2023Hindi
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Good Afternoon Sir , last two years i am investing in Parag Parikh flaxi cap- (2500 Rs. Direct) , Axis small cap -( 2500-Direct) , Hdfc Small cap-( 1000 Direct ), Icici value discovery (2500 ), Axis Blue chip-(2500) , Mirah Emerging Bluechip ( 2500) , Tata Digital India ( 1000 Rs.). request to you kindly guided me am i on right track. my investment horizon almost 12-15 years . also i am doing sip for my kids in sbi samll cap (1000 Rs. ) kotak small cap(1000) Pgim mid cap ( 2000) for next 15 years because my both kids are at 18 years old. please suggest me on these also .

Ans: Your commitment to investing for the future is commendable. Investing with a horizon of 12-15 years provides ample time for your investments to grow. Let’s review and optimise your portfolio for better returns and balanced risk.

Current Investment Overview

Your current investments include a mix of small-cap, mid-cap, flexi-cap, and sectoral funds. Diversification across these categories is a prudent strategy, reducing risk and enhancing potential returns.

Analysing Fund Selection

Your selection of funds indicates a balanced approach. Small-cap and mid-cap funds offer high growth potential but come with higher risk. Flexi-cap and large-cap funds provide stability, balancing your portfolio.

Investment in Direct Funds

Direct funds have lower expense ratios, increasing your returns over time. However, they lack the professional guidance available through regular plans. Investing through a Certified Financial Planner can provide tailored advice and oversight.

Disadvantages of Index Funds

Index funds track market indices, potentially limiting returns. They lack the adaptability of actively managed funds, which adjust to market conditions for better performance.

Advantages of Actively Managed Funds

Actively managed funds offer professional management, adapting to market changes. This flexibility can result in higher returns compared to passive index funds.

Kids’ Investment Portfolio

Investing for your kids' future in small-cap and mid-cap funds is a smart choice. These funds have the potential for higher returns over a long investment horizon. Ensure you periodically review and adjust the portfolio as needed.

Periodic Review and Rebalancing

Regularly reviewing and rebalancing your portfolio ensures it remains aligned with your financial goals. This proactive approach optimises returns and manages risks effectively.

Creating a Comprehensive Financial Plan

Consider other financial aspects like emergency funds, insurance, and tax planning. A holistic financial plan ensures a secure and well-rounded approach to wealth creation.

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 disciplined investment strategy and diversified portfolio are commendable. With regular review and professional guidance, you can achieve your financial goals and secure a bright future for your family.

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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Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

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

Asked by Anonymous - Jun 26, 2024Hindi
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We have invested 3k from last 4 years in Aditya Birla mutual fund equity based. And last year kotak mid cap and small cap of 7k and 3k respectively. Other than this we invest in NPS 50k per year from last 5 years and have two lic policies of 5 lalk sum assured. We have two kids aged 7 and 4. Earning is 1 lakh . Expenses are home loan 31k for 32 lakh loan of 15 years , 3 years are done. Monthly expenses are 31k emi, 30k home, 15 k parents. Please suggest if this is a good way to invest for future of our children or any changes that need to be done we plan to keep investing in mutual funds for long term. Kotak Balanced Advantage Fund Growth (Regular Plan) and Kotak Small Cap Fund - Growth (Regular Plan) (Erstwhile Kotak Mid-Cap). No term insurance and there is company health insurance of my husband. I earn 10k per month.
Ans: Current Financial Situation

You have a combined monthly income of Rs. 1.10 lakh.

You have two kids aged 7 and 4.

Your monthly expenses include:

Rs. 31k home loan EMI
Rs. 30k home expenses
Rs. 15k for parents
Current Investments

You invest Rs. 3k per month in Aditya Birla mutual fund (equity-based) for the last 4 years.

You invest Rs. 7k per month in Kotak Mid Cap fund and Rs. 3k per month in Kotak Small Cap fund (last year).

You invest Rs. 50k per year in NPS for the last 5 years.

You have two LIC policies with a sum assured of Rs. 5 lakhs each.

Assessment of Current Investments

Your current mutual fund investments are good for long-term growth.

Equity mutual funds, especially mid-cap and small-cap, offer high growth potential.

NPS is a good investment for retirement savings, with tax benefits.

LIC policies provide some security but have lower returns compared to mutual funds.

Recommended Changes

Increase SIP in Mutual Funds

Consider increasing your SIPs in equity mutual funds.

This will help in wealth accumulation for your children's future.

Focus on a mix of large-cap, mid-cap, and small-cap funds.

Balanced Advantage Fund

Balanced Advantage Funds balance equity and debt.

They provide moderate growth with lower risk.

Consider allocating more to these funds for stability.

Avoiding Direct Funds

Direct funds need active management and expertise.

Regular funds, through a Certified Financial Planner, offer professional guidance.

They provide personalized advice and ongoing support.

Health and Term Insurance

You mentioned company health insurance.

Ensure it covers your entire family adequately.

Consider taking a separate term insurance policy for your husband.

Term insurance provides financial security in case of unforeseen events.

Review LIC Policies

LIC policies have lower returns compared to mutual funds.

Consider surrendering or partially surrendering them.

Reinvest the proceeds in high-return mutual funds.

Emergency Fund

Maintain an emergency fund for unforeseen expenses.

This should cover 6-12 months of living expenses.

Keep this fund in a liquid asset like a savings account or liquid mutual fund.

Final Insights

Your current investments are on the right track.

Increasing SIPs and adding balanced advantage funds can provide stability.

Ensure adequate insurance coverage and maintain an emergency fund.

Regular reviews and professional advice will help you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 20, 2024

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Dear sir, currently I am investing 5000 in SBI Blue chip, 3500 in ABSL frontline equity, 2000 in mira asset ELSS, 5000 in PPFAS flexi cap , 2500 in Quant active fund 5000 in Motilal Oswal mid cap , 1000 in HSBC midcap , 2500 in HSBC small cap, 3000 in Nippon small cap and 2000 in quant small cap. Apart from this I am doing 1 lakh per year in PPF and 10000 per month in NPS. I have started my investment since 2017 and gathered around 16 lakhs , my target is 1 cr in 2031 , Questions , is my investments are inline to achieve my aim , further I want to start sip exclusively for my kid , he is 8 yrs old I can contribute 5 k , pls suggest a aggressive Equity fund for around 20 yrs horizon. Shall I continue to invest in PPF / NPS OR divert money to MFs pls suggest, waiting for your reply. Thanks and regards.
Ans: Your current investment portfolio includes:

SBI Blue Chip Fund: Rs. 5,000
Aditya Birla Sun Life Frontline Equity Fund: Rs. 3,500
Mirae Asset ELSS: Rs. 2,000
PPFAS Flexi Cap Fund: Rs. 5,000
Quant Active Fund: Rs. 2,500
Motilal Oswal Midcap Fund: Rs. 5,000
HSBC Midcap Fund: Rs. 1,000
HSBC Small Cap Fund: Rs. 2,500
Nippon Small Cap Fund: Rs. 3,000
Quant Small Cap Fund: Rs. 2,000
Public Provident Fund (PPF): Rs. 1 lakh per year
National Pension System (NPS): Rs. 10,000 per month
You've accumulated around Rs. 16 lakhs since 2017. Your goal is to achieve Rs. 1 crore by 2031. Additionally, you're looking to start an aggressive equity SIP for your 8-year-old child, with a 20-year horizon.

Assessing Your Current Portfolio
Diversification and Fund Allocation:

Your portfolio is diversified across large-cap, mid-cap, small-cap, and flexi-cap funds. This diversification is positive as it balances risk and return potential.
Your exposure to mid-cap and small-cap funds indicates a moderate to high-risk appetite. This is aligned with your long-term goal but requires consistent monitoring due to the inherent volatility in these segments.
The allocation to ELSS (Mirae Asset) provides tax benefits but also contributes to your equity exposure.
PPF and NPS Contributions:

PPF: While PPF is a safe investment with tax benefits, its returns (typically around 7-8%) may not be sufficient to meet your aggressive goal of Rs. 1 crore by 2031. The lock-in period is also a limitation if you require liquidity.
NPS: NPS offers a mix of equity and debt, with some tax benefits. However, its returns are generally lower than pure equity funds, and it comes with restrictions on withdrawal until retirement.
Progress Towards Your Rs. 1 Crore Goal
Current Portfolio Value:

You've accumulated Rs. 16 lakhs since 2017, which is a commendable start. However, to reach Rs. 1 crore by 2031, you'll need to assess whether your current SIPs are adequate.
Expected Growth:

Assuming an average return of 12-14% per annum from your equity mutual funds, your current investments should grow significantly by 2031. However, to reach Rs. 1 crore, you'll need to ensure that your investments are aggressive enough and consistently reviewed.
SIP Analysis:

Your current SIPs total Rs. 30,500 per month. If this continues, and assuming a 12% annual return, you could potentially reach around Rs. 80-90 lakhs by 2031. To bridge the gap to Rs. 1 crore, you may need to increase your SIPs slightly or optimize your portfolio.
Recommendations for Optimizing Your Portfolio
Continue Investing in Equity Mutual Funds:

Considering your goal and risk appetite, it's advisable to continue focusing on equity mutual funds. They have the potential to deliver higher returns over the long term compared to PPF and NPS.
Reallocation from PPF/NPS to Mutual Funds:

You may consider reducing your contributions to PPF and NPS and reallocating those funds into your equity mutual funds. This strategy could enhance your portfolio's growth potential.

For instance, you could reduce your PPF contribution to the minimum required to maintain the account and redirect the surplus to a well-performing equity fund.

Additional SIP for Your Child:

For your child’s education or future needs, with a 20-year horizon, you can opt for an aggressive equity fund. An equity fund with a focus on growth sectors like technology, healthcare, or emerging markets can be suitable.

Since you’re comfortable with risk, you might consider a mid-cap or small-cap fund with a strong track record. Over 20 years, these funds can deliver substantial returns, though they come with higher volatility.

Fund Performance Monitoring:

Regularly review the performance of your mutual funds. If a fund consistently underperforms its benchmark or peers, consider switching to a better-performing option.

While diversification is important, avoid over-diversification, which can dilute returns. A well-chosen set of 5-7 funds can be more effective than spreading your investments too thinly.

Suggested Changes and Future Actions
Consolidate Your Portfolio:

Consider consolidating your investments into fewer, high-performing funds. For instance, you might reduce the number of small-cap funds to focus on those with the best track records.

Simplifying your portfolio makes it easier to manage and track performance.

Increase SIPs Gradually:

To bridge the gap to Rs. 1 crore, consider increasing your SIPs by a small amount each year. Even a Rs. 2,000-3,000 increase annually can make a significant difference over time.
Maintain Emergency Funds:

Ensure you have an adequate emergency fund separate from your investments. This will prevent you from liquidating investments during market downturns or emergencies.
Final Insights
Your current investment strategy is on the right track, but slight adjustments and a focus on equity funds can help you achieve your Rs. 1 crore target by 2031. For your child’s future, an aggressive equity fund with a 20-year horizon is a wise choice. Reducing your exposure to lower-yielding options like PPF and reallocating to mutual funds can further enhance your portfolio's growth potential.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 17, 2025

Money
Hi Sir, I m 34 year old and 2 year old child only and have question on investment if I m going on right path or not I have 8 mutual fund which is HSBC small cap (2000 monthly) parak parik flexi cap (1600 weekly) Canara blue chip (2000 monthly) uti nifty 50 index (5000 monthly) Motilal nifty microcap250 index (500 weekly) icici gold fund etf (400 weekly) Kotak emerging equity (4000 monthly) parak parik elss fund (2500 monthly) sip going on till date corpse become 11 lakh and i add more amount when market down. I have 3lakh in ppf and add more for 15 year and had 3 policy 1 is with hdfc year premium 36000 for 10 year will mature in 15 year as per market performance and will add bonus yearly by company. Second policy is with Canara hsbc where 136000 premium every year for 10 year and will mature in 20 year and it give assured return around 3700000 this is for my child i keep it and last policy with tata smart sip 6000 monthly. I have also nps account 50k yearly. Living in parents house so no tension for it. Monthly expenses 20k around. Pls suggest
Ans: You are 34, have a young child, and your investment journey has already begun. That is an excellent sign. You are thinking long-term, which is good. Let us now assess your strategy carefully and help you move towards financial freedom and child’s future security.

We will look at every component—mutual funds, insurance, PPF, NPS, and expenses—and create a complete 360-degree strategy.

Understanding Your Current Financial Snapshot
Let’s break down what you have done so far:

You have 8 mutual fund SIPs.

You invest in PPF and NPS yearly.

You hold 3 insurance-cum-investment policies.

You live in a family house, hence no EMI burden.

Monthly expenses are only Rs. 20,000.

You are saving a major part of your income. That’s a big strength.

Mutual Fund Investment Review
You are investing across 8 different mutual funds through SIPs. Your total SIP amount is high. That is very positive. But diversification must also be meaningful.

Let’s assess category-wise:

Positive Observations:

SIPs are active and consistent.

You invest extra when market falls.

You have mix of small cap, flexi cap, ELSS, large cap.

Portfolio value already reached Rs. 11 lakhs.

This shows discipline and commitment.

Concerns Identified:

Two funds are index funds.

Gold ETF SIP is ongoing.

Portfolio has overlapping and extra schemes.

Let us now address these concerns.

Problem with Index Funds
You invest in a Nifty 50 index fund and microcap 250 index fund.

But index funds have these problems:

No active fund manager to protect in bad markets.

No personalisation or research.

No performance difference in up/down markets.

Very high correlation across all index funds.

No flexibility to exit weak sectors.

You are better off with actively managed funds.

Benefits of actively managed mutual funds:

Expert fund manager takes sectoral calls.

Avoids weak-performing stocks.

Better long-term return potential.

More flexible and smart stock selection.

Please stop new investments into index funds. Slowly switch to active large cap, flexi cap, or hybrid funds through a Certified Financial Planner.

Problem with Direct Mutual Funds (if applicable)
If you are investing through direct plans, then:

Disadvantages of Direct Funds:

No one to guide during market fall.

Easy to panic and stop SIPs.

No regular rebalancing done.

Wrong asset allocation possible.

Risk of too much in one sector.

Why Regular Funds via CFP are better:

You get annual review support.

Your risk profile is considered.

Asset allocation is planned.

Emotional decisions are avoided.

You get personalised, ongoing advice.

Switch your investments from direct to regular mutual funds through a CFP-led MFD.

This small step improves your entire portfolio efficiency.

Keep SIP Count Lean
You hold 8 SIPs right now. This is slightly more than needed.

Ideal number of SIPs for you:

1 large cap

1 flexi cap

1 mid or small cap

1 ELSS for tax saving

1 hybrid fund for balance

Too many funds lead to overlap and tracking issues.

You can merge similar funds gradually. Avoid adding new schemes unnecessarily.

SIP Frequency and Gold Fund
You invest weekly in few funds. Also, you invest in a gold ETF fund.

Issues with weekly SIPs:

Difficult to track and manage

No major benefit over monthly SIP

Makes portfolio too spread out

Gold ETF issue:

Gold is not a growth asset

It only protects value, not multiplies

Fund value fluctuates with global news

Doesn't suit long-term goals like retirement or child education

Stop weekly SIPs. Convert to monthly.

Limit gold exposure to not more than 5% of your overall corpus.

Insurance Policy Review
You hold 3 insurance-based investment plans. These are:

1 market-linked ULIP type with Rs. 36,000 yearly

1 child plan with Rs. 1,36,000 yearly premium

1 SIP-linked plan from a private insurer

These are not term policies. Hence, these are all investment-cum-insurance plans.

Why these are not good for long-term:

Very low returns (5–6%)

High charges in early years

Poor transparency

Not flexible like mutual funds

Maturity amount is taxable if premium exceeds 5 lakhs in total

These funds will not beat inflation in long run.

Action Steps on Insurance
Please consider these steps:

Surrender these policies only if minimum lock-in is completed

Reinvest the amount received into mutual funds via SIP

Start a pure term insurance with high cover (at least Rs. 1 crore)

Don’t mix insurance and investment going forward

For your child’s goal, use child-focused mutual funds or hybrid funds.

Do not depend on these traditional insurance-based policies.

PPF and NPS Review
You are contributing to both PPF and NPS. This is a balanced approach.

PPF Status:

Balance is Rs. 3 lakh

Regularly contributing for 15 years

Tax-free returns

Safe and stable part of portfolio

Keep doing this every year.

NPS Contribution:

Rs. 50,000 yearly

Helps in extra tax saving

Invested in equity and debt mix

Partial withdrawal allowed after 60

You can continue contributing. But remember:

NPS maturity amount is partly taxable

Limited liquidity

Compulsory annuity purchase not needed now, but evaluate later

Continue both PPF and NPS as part of safe allocation.

Lifestyle and Expenses Planning
You live in a family house. Monthly expenses are only Rs. 20,000.

That’s a big plus. You can invest aggressively.

However, lifestyle cost will go up as child grows.

Prepare for:

Child school, college, coaching

Health expenses

Travel and family goals

Build a monthly budget and target-based investments accordingly.

Future Financial Goals – What to Do Next
You are young. Time is on your side. Here’s how to move next:

For Child Education
Use mutual funds instead of insurance

Start one child-specific SIP

Use hybrid or flexi cap mutual funds

Review fund yearly with CFP

For Retirement
Let mutual fund corpus grow for 20+ years

Avoid early withdrawals

Maintain SIP discipline

Don’t depend on PPF/NPS alone

Build large corpus with SIPs and bonuses

For Emergencies
Keep 6 months of expenses in liquid fund

Don’t touch mutual funds for emergencies

Health insurance for you and child is must

Finally
You are on a good financial path already. Your savings habit is strong. But to maximise your wealth, optimise the instruments.

Key Steps to Take Now:

Stop investing in index funds

Shift from direct to regular funds via CFP

Merge overlapping mutual funds

Review insurance policies and exit non-term plans

Start proper term insurance cover

Focus on child and retirement goals separately

Continue PPF and NPS steadily

Create an emergency fund in liquid mutual funds

Review goals once every year with a Certified Financial Planner

With this structured approach, you will create long-term wealth with clarity.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2025

Asked by Anonymous - Jun 18, 2025Hindi
Money
Hi Ramalingam Sir, I'm a working 40 year old women and a mother of 2 kids. my monthly take home is 1.75L. my deductions and investments are house loan EMI 52000 personal loan 22000 car loan 21444 top up loan 8500 LiC premiums per annum 1L Term Life insurance per annum 52k NPS around 5700 i.e. 4% of basic pay Sukanya Samriddhi 6k monthly PPF 6k monthly Mirea Asset Large&Midcap Fund direct 2k SIP upto 3yrs Quant Small Cap Fund 5k SIP upto 3 years Nippon India Multi cap fund 5k SIP upto 3 yars ICICI Prudential Bluechip fund 5k SIP upto 1 year Motilal Oswal Midcap Fund 10k SIP upto 1 year my 1 year SIPs would complete by October 2025. my daughter is 8yrs old and son 3 yrs old. I would like to know if my investments are correct and please suggest if am going in right direction with regards to investments. As I'm working in a software company, I would like to have some pooled up money for my kids for education purpose. my husband is also working and focusing on building physical assets for kids so I want to have right investments and purpose for the money I earn. Thank you Sir in advance.
Ans: You are very organised with your finances.
As a Certified Financial Planner, let me give you a full 360-degree review.

Family and Income Snapshot
You are 40 years old and working in software.

You have two children aged 8 and 3.

Monthly take-home salary is Rs 1.75 lakh.

Your spouse is also earning and focusing on physical assets.

You wish to build a focused education fund for children.

You are already investing with discipline and purpose.
Let’s now study everything in detail and correct where needed.

Existing Loan Commitments
You are currently paying for four types of loans:

Home Loan EMI: Rs 52,000

Personal Loan: Rs 22,000

Car Loan: Rs 21,444

Top-up Loan: Rs 8,500

That is Rs 1,03,944 towards loan EMIs.
This eats up nearly 60% of your salary.
This is high. It increases financial pressure.

Suggestions:

Try to repay the personal loan early.

Check if car loan can be closed faster.

Avoid fresh loans till current loans are cleared.

Do not use top-up loans for non-emergency needs.

Reducing EMI will free money for better investment.

Insurance Portfolio Review
You have:

LIC premiums: Rs 1 lakh per year

Term life insurance: Rs 52,000 per year

LIC premiums are usually part of endowment or money-back.
These are low-return products combining investment and insurance.
They are not good for wealth creation.

Suggestions:

If your LIC is investment-based, surrender it.

Use surrender value to invest in mutual funds.

Term insurance should be plain and high cover.

Coverage should be minimum 15–20 times annual income.

Don’t mix insurance with investment again in future.

NPS Contribution
You contribute Rs 5,700 monthly to NPS.

It is 4% of basic salary.

NPS is good for retirement, but it locks your money till 60.
Returns are decent but come with withdrawal restrictions.

Suggestions:

Continue NPS contribution for tax benefit.

Don’t increase allocation here.

Your main long-term growth must come from mutual funds.

Sukanya Samriddhi and PPF
Sukanya: Rs 6,000 monthly for daughter.

PPF: Rs 6,000 monthly.

These are safe, tax-free investments.
But they give 7–8% return, which is fixed-income category.
Long term, they can’t beat inflation fully.

Suggestions:

Continue Sukanya till age 15 of daughter.

Cap PPF at Rs 6,000/month.

Don’t increase traditional schemes further.

For long-term goals, use mutual funds more.

Mutual Fund Investments
You are investing via SIPs in 6 different funds.

Mirae Large & Midcap – Rs 2,000 (3 years)

Quant Small Cap – Rs 5,000 (3 years)

Nippon Multicap – Rs 5,000 (3 years)

ICICI Bluechip – Rs 5,000 (1 year)

Motilal Oswal Midcap – Rs 10,000 (1 year)

Monthly SIP total = Rs 27,000

This is a good practice, but there are few issues:

All are direct plans.

Small cap and midcap funds are high risk.

Direct plans offer no advisory support.

No proper rebalancing or goal tracking.

Disadvantages of Direct Plans:

You are alone in selecting and reviewing funds.

No expert helps you during market downturns.

You may miss better schemes or exit too late.

Emotional investing can harm results.

Direct plan TER is low, but mistakes cost more.

Better Approach:

Shift to regular plans via Certified Financial Planner.

He tracks, rebalances and aligns with your goals.

You get emotional support and expert monitoring.

Small advisory fee ensures professional help.

Fund Structure Suggestion:

40% in large and flexicap actively managed funds.

30% in hybrid aggressive and balanced funds.

20% in midcap (not small cap for now).

10% in short-term debt for liquidity.

This makes your portfolio stable and growth-oriented.

Your Current SIP Tenure
Three SIPs are running till 2027 (3-year SIPs).

Two SIPs end in October 2025.

Don't stop your SIPs when tenure ends.
Mutual funds don’t work like FD maturity.
Wealth grows if SIP continues for 10–15 years.

Suggestions:

Extend your SIPs for longer duration.

Increase SIP amount slowly as EMI reduces.

Align each SIP with a specific goal.

Kid’s Education Planning
Your daughter is 8. You have 8–10 years for higher education.
Son is 3. You have 12–14 years for him.

Your goal is to build strong education fund for both.
You want to do it alone, while spouse builds physical assets.

Action Plan:

Create two child education buckets.

Assign separate SIPs to each goal.

Use child-focused active equity funds.

Invest monthly through regular plans with a planner.

Review yearly progress of corpus.

Target corpus:

Rs 50–60 lakh per child in today’s value.

Will need Rs 1–1.25 crore combined for both.

With 10–12 years horizon, SIP is best route.

Budget Balance and Cash Flow
Monthly income: Rs 1.75 lakh
Loan EMIs: Rs 1.03 lakh
SIP: Rs 27,000
Sukanya + PPF: Rs 12,000
NPS: Rs 5,700
Insurance premium (annualised): Rs 12,500

You are left with little monthly surplus.
Any bonus or hike should go to reduce loans.

Action Plan:

First, clear personal and car loan.

Reinvest the freed EMI into SIP.

Avoid top-up loans or lifestyle loans.

Maintain an emergency fund of Rs 3–5 lakh.

Keep a health insurance floater for family.

Future Roadmap in Simple Steps
Shift from direct to regular mutual funds.

Engage a CFP to guide every step.

Keep SIPs long-term, goal-linked and diversified.

Reduce loan load over next 2 years.

Use bonuses or hikes to build kids' corpus.

Review portfolio every year.

Avoid any new insurance?cum?investment products.

Final Insights
You are doing a lot of right things already.

But some fine-tuning is needed now.

Direct funds and LIC policies may hold you back.

Loans are heavy, need early closure.

Kids' goals need structured planning and tracking.

Mutual funds must be managed actively by expert.

You have limited earning years ahead.
You can build strong wealth with right plan now.
Let your money grow with clarity and care.
And give your children the financial base they deserve.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Nayagam P

Nayagam P P  |10852 Answers  |Ask -

Career Counsellor - Answered on Dec 07, 2025

Career
Hello, I’m a student who recently joined the Integrated M.Sc Physics program at Amrita University. I’m aiming for a strong academic foundation and a clear career path. Could you please guide me on the following: How good is this course for research careers or higher studies (IISc, IITs, abroad)? What are the placement prospects after Integrated M.Sc Physics at Amrita? Does the program help in preparing for alternate options like UPSC, CDS/AFCAT, or technical roles? What skills (coding, research projects, certifications) should I start early to make the most of this degree?
Ans: Sree, Program Overview and Academic Foundation: Congratulations on joining the Integrated M.Sc Physics program at Amrita University. This five-year integrated program represents a rigorous pathway designed to equip you with advanced theoretical and experimental physics knowledge combined with cutting-edge scientific computing skills. The curriculum uniquely integrates a minor in Scientific Computing, which adds substantial computational capability to your profile—a critical advantage in today's research and professional landscape. The program incorporates comprehensive coursework spanning classical mechanics, electromagnetism, quantum mechanics, statistical physics, advanced laboratory work, and specialized topics in materials physics, optoelectronics, and computational methods, positioning you excellently for both research and professional careers.
Research Career Prospects: IISc, IITs, and Beyond: For research-oriented careers, the Integrated M.Sc Physics program at Amrita provides an exceptional foundation. Amrita's curriculum specifically aligns with GATE and UGC-NET examination syllabi, and the institution emphasizes early research engagement. The faculty at Amrita actively publish research in Scopus-indexed journals, with over 60 publications in international venues within the past five years, exposing you to active research environments.
To pursue research at premier institutions like IISc, you would typically follow the PhD pathway. IISc accepts M.Sc graduates through their Integrated PhD programs, and with your Amrita M.Sc, you're eligible to apply. You'll need to qualify the relevant entrance examinations, and your integrated program's emphasis on research fundamentals provides strong preparation. The final year of your Integrated M.Sc is intentionally structured to be nearly free of classroom commitments, enabling engagement with research projects at institutes like IISc, IITs, and National Labs. According to Amrita's data, over 80% of M.Sc Physics students secured internship offers from reputed institutions during academic year 2019-20, directly facilitating research career transitions.
Placement and Direct Employment Opportunities: Amrita University boasts a comprehensive placement ecosystem with strong corporate and government sector connections. According to NIRF placement data for the Amrita Integrated M.Sc program (5-year), the median salary in 2023-24 stood at ?7.2 LPA with approximately 57% placement rate. However, these figures reflect general placement trends; physics graduates often secure higher packages in specialized technical roles. Many graduates join software companies like Infosys (with early offers), Google, and PayPal, where their strong analytical and computational skills command competitive compensation packages ranging from ?8-15 LPA for entry-level positions.
The Department of Corporate and Industrial Relations at Amrita provides intensive three-semester life skills training covering linguistic competence, data interpretation, group discussions, and interview techniques. This structured placement support significantly enhances your employability in both government and private sectors.
Government Sector Opportunities: UPSC, BARC, DRDO, and ISRO: Your M.Sc Physics degree opens multiple avenues for prestigious government employment. UPSC Geophysicist examinations explicitly list M.Sc Physics or Applied Physics as qualifying degrees, enabling you to compete for Group A positions in the Geological Survey of India and Central Ground Water Board. The age limit for geophysicist positions is 32 years (with relaxation for reserved categories), and the exam comprises preliminary, main, and interview stages.
BARC (Bhabha Atomic Research Centre) actively recruits M.Sc Physics graduates as Scientific Officers and Research Fellows. Recruitment occurs through the BARC Online Test or GATE scores, with positions in nuclear science, radiation protection, and atomic research. BARC Summer Internship programs are available, offering ?5,000-?10,000 monthly stipends with opportunity for future scientist recruitment.
DRDO (Defense Research and Development Organization) recruits M.Sc Physics graduates through CEPTAM examinations or GATE scores for roles involving defense technology, weapon systems, and laser physics research. ISRO (Indian Space Research Organisation) regularly advertises scientist/engineer positions through competitive recruitment for candidates with strong physics backgrounds, offering opportunities in satellite technology and space science applications.
Other significant employers include the Indian Meteorological Department (IMD) recruiting as scientific officers, and NPCIL (Nuclear Power Corporation of India Limited), offering stable government service with competitive compensation packages exceeding ?8-12 LPA for scientists.
Alternate Career Pathways: UPSC, CDS, and AFCAT: UPSC Civil Services (IFS - Indian Forest Service): M.Sc Physics graduates qualify for UPSC Civil Services examinations, with the forest service offering opportunities for science-based administrative roles with potential to reach senior government positions.
CDS/AFCAT (Armed Forces): While AFCAT meteorology branches specifically require "B.Sc with Maths & Physics with 60% minimum marks," the technical branches (Aeronautical Engineering and Ground Duty Technical roles) require graduation/integrated postgraduation in Engineering/Technology. An M.Sc Physics integrates well with technical qualifications, though you would need engineering background for direct officer entry. However, you remain eligible for specialized technical interviews if applying through alternate defence channels.
UGC-NET Examination: This pathway leads to Assistant Professor positions in central universities and colleges across India. NET-qualified candidates receive scholarships of ?31,000/month for 2-year JRF positions with PhD pursuit, transitioning to Assistant Professor salaries of ?41,000/month in government institutions. This route provides long-term academic career security with research opportunities.
Private Sector Technical Roles
M.Sc Physics graduates are increasingly valued in data science, software engineering, and technical consulting. Companies actively recruit physics graduates for software development, where strong problem-solving and logical reasoning translate to competitive packages of ?10-20 LPA. Specialized domains including quantum computing development, financial modeling, and scientific computing offer premium compensation. Your minor in Scientific Computing makes you particularly attractive to technology companies requiring computational expertise.
International Opportunities and Higher Studies Abroad
An M.Sc from Amrita facilitates admission to PhD programs at international institutions. German universities offer tuition-free or low-fee MSc Physics programs (2 years) with scholarships like DAAD providing €850+ monthly stipends. US universities accept M.Sc graduates directly for PhD positions with full funding (tuition coverage + stipend). These pathways require GRE scores and strong Statement of Purpose articulating research interests. Research collaboration opportunities exist with Max Planck Institute (Germany) and CalTech Summer Research Program (USA), both welcoming Indian M.Sc students.
Essential Skills and Certifications to Develop Immediately: Programming Languages: Start learning Python immediately—it's universally used in research and industry. Dedicate 2-3 hours weekly to data analysis, scientific computing libraries (NumPy, SciPy, Pandas), and machine learning fundamentals. MATLAB is equally critical for physics applications, particularly numerical simulations and data visualization. Aim to complete MATLAB certification courses within your first year.
Research Tools: Learn Git/version control, LaTeX for scientific documentation, and data analysis frameworks. These skills are indispensable for publishing research papers and collaborating on projects.
Certifications Worth Pursuing: (1) MATLAB Certification (DIYguru or MathWorks official courses) (2) Python for Data Science (complete certificate programs from platforms like Coursera) (3) Machine Learning Fundamentals (for expanding technical versatility) & (4) Scientific Communication and Technical Writing (develop through departmental workshops)
Strategic Internship Planning: Leverage Amrita's research connections systematically. In your third year, apply to BARC Summer Internship, IISER Internships, TIFR Summer Fellowships, and IIT Internship programs (like IIT Kanpur SURGE). These expose you to frontier research while establishing connections for future PhD or scientist recruitment. Target 2-3 research internships across different specializations to develop versatility.

TO SUM UP, Your Integrated M.Sc Physics degree from Amrita positions you exceptionally well for competitive research careers at IISc/IITs, prestigious government scientist roles at BARC/DRDO/ISRO, and international PhD opportunities. The program's scientific computing emphasis differentiates you in the job market. Immediate priorities: (1) Master Python and MATLAB within the first two years; (2) Engage in research projects starting year 2-3; (3) Target internships at premiere research institutions; (4) Prepare GATE while completing your degree for maximum flexibility in recruitment; (5) Consider UGC-NET for long-term academic stability. Your career trajectory will ultimately depend on developing strong research fundamentals, demonstrating consistent excellence in specialization areas, and strategically selecting internship and research opportunities. The rigorous Amrita program combined with disciplined skill development positions you for exceptional career success across multiple sectors. Choose the most suitable option for you out of the various options available mentioned above. All the BEST for Your Prosperous Future!

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Asked on - Dec 07, 2025 | Answered on Dec 07, 2025
Thankyou
Ans: Welcome Sree.

...Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2025

Asked by Anonymous - Dec 06, 2025Hindi
Money
Dear Sir/Ma'am, I need some guidance and advice for continuing my mutual fund investments. I am a 36 year old male, married, no kids yet and no debts/liabilities as such. I have couple of savings in PPF, NPS, Emergency funds and long term investing in direct stocks. I recently started below mentioned SIPs for long term to grow wealth. Request you to review the same and let me know if I should continue with the SIPs or need to rationalize. Kindly also advice on how to invest a lumpsum amount of around 6lacs. invesco small cap 2000 motilal oswal midcap 2700 parag parikh flexicap 3000 HDFC flexicap 3100 ICICI prudential largecap 3100 HDFC large and midcap 3100 HDFC gold etf FOF 2000 ICICI Pru equity and debt fund 3000 HDFC balanced advantage fund 3000 nippon india silver etf FOF 2000
Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

...Read more

Dr Dipankar

Dr Dipankar Dutta  |1837 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Dec 05, 2025

Career
Dear Sir, I did my BTech from a normal engineering college not very famous. The teaching was not great and hence i did not study well. I tried my best to learn coding including all the technologies like html,css,javascript,react js,dba,php because i wanted to be a web developer But nothing seem to enter my head except html and css. I don't understand a language which has more complexities. Is it because of my lack of experience or not devoting enough time. I am not sure. I did many courses online and tried to do diplomas also abroad which i passed somehow. I recently joined android development course because i like apps but the teaching was so fast that i could not memorize anything. There was no time to even take notes down. During the course i did assignments and understood the code because i have to pass but after the course is over i tend to forget everything. I attempted a lot of interviews. Some of them i even got but could not perform well so they let me go. Now due to the AI booming and job markets in a bad shape i am re-thinking whether to keep studying or whether its just time waste. Since 3 years i am doing labour type of jobs which does not yield anything to me for survival and to pay my expenses. I have the quest to learn everything but as soon as i sit in front of the computer i listen to music or read something else. What should i do to stay more focused? What should i do to make myself believe confident. Is there still scope of IT in todays world? Kindly advise.
Ans: Your story does not show failure.
It shows persistence, effort, and desire to improve.

Most people give up.
You didn’t.
That means you will succeed — but with the right method, not the old one.

...Read more

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