Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 25, 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

Question by Ajay on May 24, 2024Hindi

Money

Hi sir. My age is 66 years, my question to you is where to invest Lic maturity amount of 50 lac which i will be getting in a month's time. I and my wife has the following investments PPF 1CR. Still continuing FD 60L Senior citizen scheme 60L JEEWAN Akshay 50L Pist off.monthly scheme 18L Mutual fund 5L We are staying in our own house and has no financial liability as both my daughters are well settled and married. I have rental income of 30 thosand PM Will it be feasible for me to invest in mutual funds at this stage or go for FD'S etc. Regards

Ans: Congratulations on your upcoming maturity amount from LIC. You have done an excellent job in building a diverse investment portfolio. With your current financial stability and no liabilities, you have the freedom to make informed investment decisions.

Understanding Your Financial Goals
At the age of 66, your primary financial goals might include capital preservation, regular income, and a bit of growth to combat inflation. It is essential to balance these goals while considering your risk tolerance.

Assessing Existing Investments
You have significant investments in safe instruments:

PPF: Rs 1 crore

FD: Rs 60 lakh

Senior Citizen Scheme: Rs 60 lakh

Jeevan Akshay: Rs 50 lakh

Post Office Monthly Scheme: Rs 18 lakh

Mutual Funds: Rs 5 lakh

You also have a rental income of Rs 30,000 per month. This stable income and diversified investments already provide a solid financial foundation.

Considering Mutual Funds for Growth
Investing in mutual funds can provide higher returns compared to traditional instruments like FDs. However, given your age, the focus should be on low to moderate-risk mutual funds. These funds can help in achieving better inflation-adjusted returns without taking excessive risks.

Benefits of Actively Managed Funds
Actively managed funds, overseen by professional fund managers, aim to outperform the market. These funds can offer better returns, especially during market fluctuations. With the guidance of a Certified Financial Planner (CFP), you can select funds that align with your risk profile and financial goals.

Drawbacks of Index Funds
Index funds, which passively track a market index, do not offer flexibility during market downturns. They lack the potential to outperform the market since they mirror the index performance. Actively managed funds provide an opportunity for better returns through strategic investment decisions.

Disadvantages of Direct Funds
Direct funds might appear cost-effective due to lower fees, but they do not offer professional advice. Investing through a Mutual Fund Distributor (MFD) with a CFP credential provides expert guidance. This ensures that your investments are managed according to your financial needs and risk tolerance.

Considering Fixed Deposits for Stability
Fixed deposits (FDs) offer capital safety and guaranteed returns. They are suitable for risk-averse investors looking for steady income. Given your substantial existing FD investments, adding more could provide further financial security.

Exploring Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is an excellent option for senior citizens seeking regular income. It offers attractive interest rates and tax benefits. Given your current investment in SCSS, you are already benefiting from its stability and returns.

Evaluating Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is another secure option providing regular income. It ensures capital protection with a fixed monthly return. Your existing investment in POMIS complements your need for regular income.

Balancing Growth and Stability
Given your diversified portfolio, you might consider investing part of the LIC maturity amount in mutual funds for growth. Simultaneously, allocating a portion to FDs or SCSS can maintain stability and provide regular income. This balanced approach can help you achieve your financial goals effectively.

Conclusion
Your financial strategy should align with your goals, risk tolerance, and need for regular income. Consulting with a Certified Financial Planner (CFP) can provide tailored advice. They can help you make informed decisions and optimise your investment portfolio.

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.

MoneyReply

You may like to see similar questions and answers below

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

Asked by Anonymous - May 30, 2024Hindi

Money

I am Sankar Roy 45 year old a Junior commission officer of India Army. Plaing to pension out with LMC ground by Apr 25. I will having total amount of Rs 48 Lacs retirement amount by Apr 25. Pension pm Rs 33000/ pm. Monthly expiditute Rs 50000 pm . Want 1 CR after 10 years . LIC will mature by 2032/ 20 Lacs . Health Insurance not required as ECHS facility are given by Govt./Army . Pl advice me how to invest. DA will increase 8% yerly. Will ing to invest Mutual fund with moderate risk. Preference to invest 50 % Govt Bank as no other side income are there. Personal house at Kolkata. Joka . No other liability and loan are their. Two son are studying one in 11th and one in class 1st at KV . Pl sir make my investment profile for my desired 1 CR. With regards Harekrishna. I will be grateful.

Ans: Dear Harekrishna,

First and foremost, I want to commend your dedicated service to our nation. Your efforts and sacrifices are truly appreciated. Let's work towards crafting a financial plan that meets your needs and goals.

You aim to accumulate Rs 1 crore in 10 years and manage your monthly expenses post-retirement. With a retirement corpus of Rs 48 lakhs, monthly pension of Rs 33,000, and expected LIC maturity of Rs 20 lakhs by 2032, we need a balanced approach to investment.

Monthly Expense Management
Your current monthly expenditure is Rs 50,000. After retirement, you will receive Rs 33,000 as a pension, leaving a shortfall of Rs 17,000. This gap can be managed through a systematic withdrawal plan (SWP) from your investments.

You will need to invest in a way that ensures a steady income while allowing your corpus to grow.

Investment in Government Bank FDs
Given your preference for safety and 50% allocation to government bank deposits, we can allocate Rs 24 lakhs to Fixed Deposits (FDs). This will provide stable, albeit modest, returns. FDs in government banks are secure and offer interest rates ranging from 5% to 7%.

This conservative portion ensures you have a safety net and liquidity.

Investment in Mutual Funds
With the remaining Rs 24 lakhs, a diversified portfolio in mutual funds can be created. Given your moderate risk appetite, a balanced approach with a mix of equity and debt funds is advisable.

Advantages of Actively Managed Funds
Actively managed funds involve professional management and aim to outperform the market. The fund manager’s expertise can potentially yield higher returns compared to index funds, which simply track the market.

Actively managed funds can adapt to market conditions, manage risk better, and aim for superior performance. This can be particularly beneficial in achieving your long-term goal of Rs 1 crore.

Systematic Investment Plan (SIP)
To accumulate Rs 1 crore in 10 years, a disciplined investment approach is essential. Investing through SIPs in equity-oriented mutual funds can leverage the power of compounding. Starting a SIP with a portion of your savings will gradually build your wealth.

Systematic Withdrawal Plan (SWP)
To cover the Rs 17,000 monthly shortfall, an SWP from your mutual fund investments can be arranged. This will provide a regular income while allowing the remaining corpus to continue growing.

Balancing Risk and Returns
Your portfolio will consist of:

50% in Government Bank FDs for stability.
50% in diversified mutual funds for growth.
This balance ensures you have a mix of safety and growth.

Evaluating Direct vs Regular Mutual Funds
Direct mutual funds have lower expense ratios but require active management by the investor. This can be time-consuming and challenging without expertise. Regular funds, managed through a Certified Financial Planner (CFP), provide professional guidance, potentially enhancing returns and ensuring your investments align with your goals.

The additional cost of regular funds is justified by the professional management and peace of mind they offer.

Reviewing and Rebalancing
Regular reviews of your investment portfolio are essential. Market conditions and personal circumstances change, and your investment strategy should adapt accordingly. A CFP can help with periodic rebalancing to maintain the desired asset allocation and risk level.

Additional Considerations
Your LIC maturity of Rs 20 lakhs in 2032 can be reinvested to further boost your corpus. The government’s Dearness Allowance (DA) increase by 8% yearly will help in offsetting inflation and managing expenses.

Your sons' education expenses will gradually increase. Planning for these costs now will ensure their educational needs are met without financial strain.

Summary of Action Plan
Allocate Rs 24 lakhs in Government Bank FDs for stability.
Invest Rs 24 lakhs in diversified mutual funds via SIPs for growth.
Use SWP from mutual funds to cover the monthly shortfall of Rs 17,000.
Regularly review and rebalance your portfolio with a CFP’s assistance.
Reinvest LIC maturity amount for continued growth.
By following this plan, you can manage your expenses, grow your corpus, and achieve your goal of Rs 1 crore in 10 years.

Final Thoughts
Your disciplined approach to financial planning is commendable. With careful investment and regular reviews, you can secure your financial future and support your family’s needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 09, 2024

Asked by Anonymous - Jun 09, 2024Hindi

Money

Hi I sir I a m 52 PSU bank employee. Planning to retire at 55 .Savings of 1 CR in FD .pension expected 60000.Retirement benefits arround 1 CR. Other savings in PLI 15 lacs NSC 10 lacs,LIC 5 lacs Planning to sell 1 property worth 1.5 CR.Daughter pursuing 2nd year . Aged mother and handicapped brother dependant on me. Housing loan 9 lacs outstanding.planning to avail 50 lacs for renovation of another property.Need monthly income if 2 lacs .Please advise investment avenues

Ans: Planning for a Comfortable Retirement: Steps to Achieve Your Goals
You are 52 years old, working in a PSU bank, planning to retire at 55. Your savings include Rs 1 crore in FDs, Rs 15 lakhs in PLI, Rs 10 lakhs in NSC, and Rs 5 lakhs in LIC. You expect a pension of Rs 60,000 and retirement benefits of around Rs 1 crore. You also plan to sell a property worth Rs 1.5 crore. Your dependents include your daughter in her second year of studies, an aged mother, and a handicapped brother. You have an outstanding housing loan of Rs 9 lakhs and plan to borrow Rs 50 lakhs for property renovation. You need a monthly income of Rs 2 lakhs. Here's how to plan your investments to achieve your goals.

Understanding Your Current Financial Position
You have significant assets and income streams, including:

Savings in FD: Rs 1 crore
Expected Pension: Rs 60,000 per month
Retirement Benefits: Rs 1 crore
Property Sale Proceeds: Rs 1.5 crore
Savings in PLI: Rs 15 lakhs
Savings in NSC: Rs 10 lakhs
Savings in LIC: Rs 5 lakhs
Evaluating Your Financial Goals
You aim to secure a monthly income of Rs 2 lakhs post-retirement. This requires careful planning and strategic investments.

Creating a Retirement Corpus
To achieve a monthly income of Rs 2 lakhs, you need to build a substantial corpus. Here’s how to calculate it:

Monthly Income Required: Rs 2,00,000
Annual Income Required: Rs 2,00,000 x 12 = Rs 24,00,000
Assumed Safe Withdrawal Rate: 4%
Required Retirement Corpus: Rs 24,00,000 / 4% = Rs 6 crores
Steps to Achieve the Retirement Corpus
Achieving Rs 6 crores by retirement requires a strategic approach. Here’s a step-by-step plan:

Systematic Investment Plans (SIPs)
SIPs in mutual funds can help build wealth over time. Here’s why:

Regular Investments: Investing monthly promotes disciplined saving.
Rupee Cost Averaging: It averages out the cost of investments, reducing market volatility impact.
Professional Management: Actively managed funds aim to outperform the market.
Building a Diversified Portfolio
Diversification reduces risk and maximizes returns. Here's how to create a balanced portfolio:

Equity Mutual Funds: Allocate a significant portion to equity funds for growth.
Debt Mutual Funds: Invest in debt funds for stability and predictable returns.
Balanced Funds: These funds offer a mix of equity and debt, balancing growth and stability.
Reviewing Existing Investments
You have investments in PLI, NSC, and LIC. These plans typically offer lower returns. Here’s what you can do:

Evaluate Returns: Check the returns on these plans.
Consider Surrendering: If returns are low, consider surrendering and reinvesting in mutual funds.
Utilizing the Proceeds from Property Sale
The sale of your property worth Rs 1.5 crore provides substantial capital. Here’s how to use it:

Pay Off Loans: Clear the Rs 9 lakhs housing loan to reduce liabilities.
Invest the Remaining Amount: Invest the remaining Rs 1.41 crore in a diversified portfolio for growth.
Setting Up a Systematic Investment Plan (SIP)
Determine Monthly Savings: Calculate how much you can invest monthly after expenses.
Select Actively Managed Funds: Choose funds with a strong performance history.
Start Early: The earlier you start, the more time your money has to grow.
Emergency Fund and Insurance
An emergency fund and proper insurance are crucial for financial security. Here’s what you need:

Emergency Fund: Keep 6-12 months' expenses in a liquid fund.
Health Insurance: Ensure you have adequate health coverage for yourself and your dependents.
Life Insurance: Review your life insurance to ensure sufficient coverage.
Benefits of Actively Managed Funds
Actively managed funds are managed by professionals aiming to outperform the market. Here’s why they are beneficial:

Expert Management: Fund managers make informed decisions based on market analysis.
Flexibility: They can adjust the portfolio to mitigate risks.
Potential for Higher Returns: Aiming to outperform the market, these funds often yield higher returns.
Disadvantages of Index Funds
While index funds offer low-cost diversification, they have drawbacks:

Lack of Flexibility: They strictly follow the index, missing opportunities to outperform.
Average Returns: Aim to match market performance, leading to average returns.
Full Market Exposure: They are fully exposed to market downturns without active management.
Disadvantages of Direct Funds
Direct funds have no commission costs but require more involvement. Here’s why regular funds with a CFP are better:

Professional Guidance: Regular funds come with expert advice and management.
Convenience: CFPs handle administrative tasks and provide tailored advice.
Performance Monitoring: Regular reviews by professionals ensure optimal performance.
Planning for Dependents
You have significant responsibilities, including your daughter’s education, and supporting your mother and brother. Here’s how to plan:

Education Fund: Allocate part of your savings for your daughter’s education.
Healthcare Fund: Ensure sufficient funds for your mother’s and brother’s healthcare needs.
Living Expenses: Plan for your brother’s living expenses, ensuring a stable future for him.
Renovation Loan and Its Impact
You plan to borrow Rs 50 lakhs for property renovation. Here’s how to manage it:

Evaluate Necessity: Ensure the renovation is essential and will add value.
Loan Repayment Plan: Create a clear repayment plan to manage the additional debt.
Impact on Savings: Assess how the loan will impact your overall savings and investments.
Creating a Withdrawal Strategy
Having a withdrawal strategy ensures you don’t outlive your savings. Here’s how to create one:

Systematic Withdrawal Plan (SWP): Set up SWPs in mutual funds to provide regular income.
Safe Withdrawal Rate: Withdraw at a safe rate (4%) to ensure the corpus lasts.
Adjust for Inflation: Increase withdrawals periodically to keep up with inflation.
Final Insights
Achieving a monthly income of Rs 2 lakhs post-retirement is challenging but possible. Start with SIPs in actively managed funds, diversify your portfolio, and regularly review and rebalance your investments. Utilize the proceeds from your property sale wisely and plan for dependents' future needs. Ensure you have adequate insurance and an emergency fund. With careful planning and disciplined investing, you can achieve your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Question by Aravinda - Jun 20, 2024Hindi

Money

Hi, I am 38 years old married and have one kid 8 year of age. And my salary is 58,000 per month and My wife salary is 25000 per month. I invested in LIC premium amount of Rs.41,968 Per Annum. Monthly Car Loan is Rs.9,200/-. I don't have any other investments. Kindly suggest me how to invest and where to invest the money.

Ans: It's great to see that you’re planning for your future. At 38, you have a good amount of time to build a solid financial foundation for your family. Let’s explore various investment options to maximize your savings and secure your financial future.

Evaluating Your Current Financial Situation
You and your wife have a combined monthly income of Rs 83,000. Here are your key financial commitments:

LIC premium of Rs 41,968 per annum
Monthly car loan EMI of Rs 9,200
You don't have other investments, so let's build a comprehensive plan for you.

Prioritizing Debt Management
Your car loan EMI is Rs 9,200 per month. Paying off this loan should be a priority.

Focus on Reducing Debt: Allocate extra funds towards prepaying the car loan to become debt-free faster. This will free up monthly cash flow for investments.
Evaluating LIC Policy
Your annual LIC premium is Rs 41,968. LIC policies often combine insurance with investment, which might not be the most efficient way to grow your money.

Consider Surrendering LIC: Evaluate surrendering your LIC policy and investing the money in mutual funds for better returns. Ensure you have adequate term insurance coverage.
Building an Emergency Fund
Before diving into investments, build an emergency fund. This fund should cover 6-12 months of living expenses.

Secure Safety Net: Set aside 3-6 months of expenses in a savings account or liquid fund to cover unexpected expenses like medical emergencies or job loss.
Investing in Mutual Funds
Mutual funds are an excellent way to build wealth over time. Here’s how you can start:

Systematic Investment Plans (SIPs)
SIPs allow you to invest a fixed amount regularly in mutual funds, promoting disciplined savings and leveraging the power of compounding.

Rupee Cost Averaging: SIPs help mitigate market volatility by averaging the purchase cost over time.

Long-Term Growth: Equity mutual funds, through SIPs, can provide significant long-term returns. Invest in a mix of large-cap, mid-cap, and small-cap funds for diversification.

Actively Managed Mutual Funds
Actively managed funds are overseen by professional fund managers aiming to outperform market benchmarks.

Professional Management: Fund managers use their expertise to make informed investment choices.

Flexibility and Higher Returns: Actively managed funds can adjust to market conditions, potentially offering better returns compared to passive index funds.

National Pension System (NPS)
NPS is a government-backed retirement savings scheme offering a mix of equity, corporate bonds, and government securities.

Tax Benefits: Contributions to NPS offer tax benefits under Section 80C and 80CCD.

Long-Term Growth: Higher equity allocation within NPS can offer substantial growth over time.

Public Provident Fund (PPF)
PPF is a popular long-term savings scheme with tax benefits and guaranteed returns.

Tax-Free Returns: Interest earned and maturity amount are tax-free.

Secure Investment: PPF offers a fixed interest rate and is backed by the government, making it a safe investment.

Child Education Planning
Your 8-year-old child's education is a major future expense. Planning early will ensure you can provide quality education without financial strain.

Child-Specific Mutual Funds
Consider child-specific mutual funds designed to meet educational expenses.

Goal-Based Investing: Align investments with the timeline for your child's educational milestones.

SIPs for Education: Invest in equity mutual funds through SIPs for long-term growth aimed at higher education.

Health Insurance
Ensure you have adequate health insurance coverage for your family. Medical expenses can be significant, and insurance provides financial protection.

Comprehensive Coverage: Review your current health insurance policy and enhance it if necessary to cover all family members adequately.
Term Insurance
Term insurance is crucial for financial protection in case of an untimely demise.

Adequate Coverage: Ensure you have sufficient term insurance coverage to cover liabilities and provide for your family's future needs.
Tax Planning
Effective tax planning can help you maximize your savings and reduce tax liability.

Tax-Saving Investments
Invest in instruments that offer tax benefits under Section 80C, such as PPF, NPS, and ELSS (Equity-Linked Savings Scheme).

Diversified Tax Savings: Allocate investments across various tax-saving instruments to optimize returns and tax benefits.
Diversifying Investments
Diversifying your investments helps manage risk and optimize returns.

Balanced Portfolio
Create a balanced portfolio with a mix of equity, debt, and hybrid funds.

Risk Management: Diversification spreads risk across different asset classes.

Optimized Returns: A balanced portfolio can provide steady returns with moderate risk.

Regular Review and Rebalancing
Regularly reviewing and rebalancing your investment portfolio ensures it aligns with your financial goals and risk tolerance.

Periodic Review: Assess your portfolio performance every 6-12 months.

Adjust Investments: Rebalance your portfolio by adjusting the allocation based on market conditions and financial goals.

Education and Self-Improvement
Continuously educate yourself about personal finance and investments to make informed decisions.

Financial Literacy: Stay updated with financial news, read books, and attend seminars to enhance your financial knowledge.
Final Insights
Planning your investments effectively can secure your financial future and help achieve your goals. Here’s a comprehensive approach:

Debt Management: Focus on reducing your car loan to free up funds for investments.

LIC Evaluation: Consider surrendering your LIC policy and reinvesting in mutual funds for better returns.

Emergency Fund: Build an emergency fund covering 6-12 months of living expenses.

Mutual Funds: Invest in mutual funds through SIPs for long-term growth. Consider actively managed funds for professional management.

NPS and PPF: Utilize NPS and PPF for long-term growth and tax benefits.

Child Education Planning: Invest in child-specific mutual funds for your child’s education.

Insurance Coverage: Ensure adequate health and term insurance coverage for financial protection.

Tax Planning: Invest in tax-saving instruments to maximize savings and reduce tax liability.

Diversification: Create a balanced portfolio with a mix of equity, debt, and hybrid funds.

Regular Review: Periodically review and rebalance your portfolio to stay aligned with your financial goals.

Continuous Learning: Enhance your financial literacy to make informed investment decisions.

By following this comprehensive plan, you can secure your financial future and achieve your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Milind Vadjikar |785 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Sep 24, 2024

Asked by Anonymous - Sep 23, 2024Hindi

Money

Hi. I am 48 years old. I have 60 L sum assured in LIC of which I still have to pay around 20k pm for the next 10 years. I have 15 L in MF with present value at 20L. I stay in a debt free home and have a site worth 30 L and have invested in a flat where I have paid 90% of the money. Another 10 L to pay for possession. If I retire now I will get a gratuity of 20 L. I have 2 sons Elder has completed graduation and going for higher studies. The expenses are planned and kept aside. Younger is in 10 grade. I want to retire in 2 years time and can invest 1L per month. Please suggest where to invest to maintain similar large style. I spend around 1L per month presently

Ans: Hello; Your current MF corpus(20+10 gratuity balance L) plus sip of (1 L) is assumed to be invested in equity savings type hybrid mutual fund.

This will yield you a comprehensive corpus of 63 L. (10% modest return considered)

If you buy an immediate annuity from an insurance company for your corpus sum, it may provide you a monthly income of 31.5K (6% annuity rate assumed).

The site value is not factored into this working.

Also the rental income accruing from the new flat is not considered here.

Clearly this is significantly less then your expectation of 1 L per month. Although you have stated that higher education of your elder son is provided for, the arrangement to fund higher education of your second needs to be secured too.

If you postpone your retirement by 7 years then I can suggest you to consider investing in pure equity funds and considering modest return of 13% will yield you a comprehensive corpus of 2.1 Cr yielding monthly income over 1 L considering 6% annuity.

The rental income from flat and/or site may act as tools to fund second son's higher education.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ignore previous answer which was erroneously posted against your query.

Happy Investing!!

Latest Questions

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi

Career

Hello sir I am mbbs graduated from russia in 2020,n passed with my fmge exam in india in 2021, I want to ask if i want to practice medicine or work as doctor in uk ? Is it necessary for me to pass plab exam exam? Or if i get sponsorship from any uk i will be able to work there and simultaneously i will give plab exam?? Please guide me i m so confused?

Ans: Hi, I understand that you pursued a medicine course in Russia (a non-European country) and, since you are from India, you have completed the FMGE. Now you want to practice or work in the UK as a doctor?

Based on your question, you are eligible to practice in India after completing your internship (which you haven't mentioned, but I assume you have completed it). The FMGE is essentially a licensure exam for Indian students who have completed their medical studies abroad, so you are eligible to practice in India only.

If you want to practice medicine in the UK, you need to complete the PLAB test, as you are from outside the UK/Switzerland/European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland).

You also inquired about sponsorship. Here is the information related to sponsorship for practicing medicine in the UK.
(Extracted from general medical council, uk org. )Applying for registration using sponsorship
If you apply through sponsorship, you will have to satisfy the sponsor that you possess the knowledge, skills and experience required for practising as a fully registered medical practitioner in the UK. Each sponsor has their own scheme which we have pre-approved. If you can satisfy the requirements of their scheme, they will issue you with a Sponsorship Registration Certificate (SRC) which you will need for your application with us. Please ensure this is a Sponsorship Registration Certificate for GMC registration, as we can’t accept UK visa sponsorship certificates for your application for registration.
Please note that a core part of all sponsors' criteria is that a doctor applying for an offer of sponsorship must have been engaged in medical practice for three out of the last five years including the most recent 12 months. If you cannot meet these minimum criteria, it is unlikely that you'll be able to supply sufficient evidence to support your application for sponsorship.
Doctors applying through sponsorship are required to demonstrate their English language skills by achieving our current minimum scores in the academic version of the IELTS test or the OET (medicine version).
• Alder Hey International Fellowship Scheme (Anaesthetics)
• Betsi Cadwaladr University Health Board - BCUHB IMG Sponsorship Scheme
• BAPIO Training Academy Ltd – BTA International Fellowship Scheme
• BAPIO Training Academy Ltd – International Training Programme for Postgraduate Doctors
• BAPIO Training Academy Ltd - BTA International Fellowship Scheme – Internal Medicine with interest in Oncology with MSc in Oncology
• Barking Havering and Redbridge University Hospitals NHS Trust - BHRUT Sponsorship Scheme for Overseas Doctors in Clinical Radiology
• Birmingham and Solihull Mental Health NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry (Birmingham)
• Birmingham Women’s and Children’s Hospital – Birmingham Women’s and Children’s International Medical Graduate sponsorship scheme
• Bradford District Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Cambridge IVF, Cambridge University Hospitals NHS Trust – IVF Senior Clinical Fellowship Scheme
• Cambridge University Hospital – Senior Clinical Fellowship Scheme in Intensive Care Medicine/Anaesthesia
• Canterbury Christ Church University
• Cumbria Northumberland Tyne and Wear NHS Psychiatry Fellowship Programme
• Derbyshire Healthcare NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry
• Dudley Group NHS Foundation Trust
• East Lancashire Hospitals NHS Trust - Clinical Fellowship in Urology or Ophthalmology
• East Lancashire Hospital NHS Trust - Specialist Clinical Fellowship in Pain Management
• East London NHS Foundation Trust (ELFT) – ELFT Advanced International Fellowship in Psychiatry
• East Suffolk and North Essex NHS Foundation Trust – ICENI Centre Fellowships Programme
• Edge Hill University and Wrightington, Wigan and Leigh NHS Trust – International Training Fellowships in MCh programmes
• ENT UK – Royal College of Surgeons
• Essex Partnership University NHS Foundation Trust – EPUT Advanced Fellowship in Psychiatry
• Frimley Health NHS Foundation Trust – International Fellowship in Regional Anaesthesia combined with MSc in Principles of Regional Anaesthesia at the University of East Anglia
• Great Ormond Street Hospital International Fellowship Programme
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Critical Care
• Guy’s and St Thomas’ NHS Foundation Trust – International Clinical Fellowship Programme (ICFP)
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Obstetrics and Gynaecology
• Guy’s and St Thomas’ NHS Hospitals Foundation Trust – Oncology Specialty Training
• Guy's and St Thomas' NHS Hospitals Foundation Trust – Specialty Training in Anaesthetics
• Harefield Hospital, Royal Brompton and Harefield NHS Trust – Anaesthesia and Critical Care
• Hertfordshire Partnership University NHS Foundation Trust
• Hull University Teaching Hospitals NHS Trust – International Fellows at Hull University Teaching Hospitals NHS Trust
• Humber Teaching NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Imperial College Healthcare NHS Trust – Emergency Medicine
• Imperial College Healthcare NHS Trust – Haematology
• Imperial College Healthcare NHS Trust – International Anaesthesia Trainees
• Imperial College Healthcare NHS Trust – Intensive Care Medicine
• Imperial College, London - Clinical Research
• King’s College Hospital NHS Trusts – International Critical Care Fellowship
• King’s College Hospital NHS Trusts – Paediatric Critical Care Fellowship
• Lancashire & South Cumbria NHS Foundation Trust - Psychiatry specialty Fellowship Scheme
• Lancashire Teaching Hospitals NHS Trust - Overseas Registrar Development and Recruitment (ORDER)
• Leeds Teaching Hospitals NHS Trust – International Fellowship Programme
• Leicestershire Partnership NHS Trust – International Medical Fellowship Programme in Psychiatry
• Lincolnshire Partnership NHS Foundation Trust – CESR Fellowship in Psychiatry or Sponsored Fellowship in Psychiatry
• Lysholm Dept of Neuroradiology – National Hospital for Neurology and Neurosurgery, UCL
• Manchester University NHS Foundation Trust – International Fellowship Programme
• Midlands Partnership NHS Foundation Trust
• Ministry of Defence – International Military Clinical Fellowships
• Modality Partnership - Modality Primary Care International Fellowship Scheme
• NAViGO Health and Social Care CIC – International Medical Fellowship in Psychiatry
• NHS England, East of England - East of England International Office GMC Sponsorship
• NHS Fife – CESR Fellowship Programme in Psychiatry
• NHS Grampian – Psychiatry CESR Fellowship Programme
• NHS Grampian – Multi-specialty SAS Fellowship
• NHS Wales Shared Services Partnership (NWSSP) – All Wales International Medical Recruitment Programme
• Norfolk and Suffolk NHS Foundation Trust (NSFT) - Advanced Clinical Fellowship in Psychiatry
• North Lincolnshire and Goole NHS Foundation Trust (NLAG) Sponsorship Programme
• Northampton General Hospital – Clinical Fellowship in Regional Anaesthesia
• Northampton General Hospital NHS Trust - International Clinical Fellowship in Regional Anaesthesia, Vascular Anaesthesia, or Peri-operative Medicine
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme (Psychiatry)
• Northern Care Alliance – NCA International Medical Fellowship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford Eye Hospital
• Oxford University Hospitals NHS Foundation Trust – Oxford Intensive Care Medicine (OxICM) Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford University Hospitals Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – The Oxford International Neonatal and Paediatric Fellowship Programme
• Rotherham Doncaster and South Humber NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Royal College of Anaesthetists – Global Fellowship Scheme (Anaesthesia or ICM)
• Royal College of Anaesthetists – MTI Scheme
• Royal College of Emergency Medicine
• Royal College of Obstetricians and Gynaecologists – MTI Scheme
• Royal College of Ophthalmologists
• Royal College of Paediatrics and Child Health – International Paediatric Sponsorship Scheme
• Royal College of Paediatrics and Child Health – MTI Scheme
• Royal College of Pathologists
• Royal College of Physicians of Edinburgh
• Royal College of Surgeons of England
• Royal College of Physicians of London
• Royal College of Physicians and Surgeons of Glasgow
• Royal College of Psychiatrists – MTI Scheme
• Royal College of Radiologists – Clinical Radiology
• Royal College of Radiologists – Clinical Oncology
• Royal College of Radiologists – RCR Specialty Training Sponsorship Scheme
• Royal College of Surgeons of Edinburgh
• Royal Devon and Exeter NHS Trust
• Royal Papworth Hospital NHS Foundation Trust – Senior Clinical Fellowship Programme in Anaesthesia and Critical Care
• Royal Wolverhampton Trust – Clinical Fellowship Programme
• Sheffield Children’s NHS Foundation Trust - Rotational Clinical Fellows in Paediatrics, Trauma and Orthopaedic International Fellows, and Subspeciality Fellows in Paediatrics
• Sheffield Health and Social Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Somerset NHS Foundation Trust – Somerset Overseas Doctors Sponsorship Scheme
• Somerset NHS Foundation Trust – Psychiatry Overseas Doctors Sponsorship Scheme
• South Warwickshire University NHS Foundation Trust - GMC Multispecialty Sponsorship Scheme
• South West Yorkshire Partnership NHS Foundation Trust – International Fellowship in Psychiatry
• Southmead Hospital, North Bristol NHS Trust – International Obstetrics and Gynaecology Training Programme
• St Bartholomew’s Hospital, Barts Health NHS Trust – St Bartholomew’s Critical Care Fellowship
• St George’s University Hospitals NHS Foundation Trust – International Anaesthetics Fellowship Programme
• St George’s University Hospital NHS Foundation Trust (Dr Nirav Shah) – International Intensive Care Medicine Trainees
• St George’s University Hospitals NHS Foundation Trust – International Emergency Medicine Trainees
• Surrey and Borders Partnership (SABP) NHS Foundation Trust – International Psychiatric and Community Paediatrics Sponsorship Scheme
• Tees, Esk and Wear Valleys NHS Foundation Trust – International Psychiatric CESR or SAS Fellowship
• University College London Hospitals NHS Foundation Trust, Department of Critical Care – Clinical Fellowship Critical Care and Perioperative Medicine
• University Hospital Birmingham NHS Foundation Trust - International Training Fellowship Programme
• University Hospitals Birmingham NHS Foundation Trust - UHB LED Fellowship Programme
• University Hospitals Bristol and Weston NHS Foundation Trust – Bristol Children's Hospital International Fellowship Scheme
• University Hospitals Bristol and Weston NHS Foundation Trust - Department of General Internal Medicine at Weston General Hospital
• University Hospitals Coventry and Warwickshire NHS Trust
• University Hospitals of Leicester NHS Trust - Postgraduate Clinical Fellowship Programme
• University of Buckingham – Master of Medicine
• University of Buckingham – Master of Surgery
• University of Chester and Cheshire and Wirral Partnership NHS Trust – International Training Fellows Psychiatry
• University of Hertfordshire – Professional Doctorate in General Internal Medicine (Clinical MD) Programme
KINDLY NOTE: If your sponsor is not on this list then you cannot apply using sponsorship.
If you have any further questions, please visit the GMC website for more information.

WISH YOU ALL THE VERY BEST.

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Aug 02, 2024Hindi

Career

I’m mbbs final year student from Kathmandu university want pg medicine from UAE

Ans: You have provided very limited information. I understand that you are a student from Kathmandu University and wish to pursue higher education in medicine in the UAE. To provide a more accurate response, I need the following details:

What is your nationality? (Based on your nationality, I can check the relevant requirements from the health department regarding courses and internships).

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Dec 20, 2024Hindi

Career

Sir my son has 92 percentile in cat 2024..what are his scopes of admission.

Ans: Hi Sir,
You have provided very limited information to obtain the details. However, the percentile of the candidate will not solely determine the admission process. Other factors are also involved, including:

- Course
- Institution
- Caste
- Creamy layer
- Gender

But, there may be possibilities for admission to the following IIMs: IIM Visakhapatnam, Udaipur, Bodhgaya, Shillong, and Rohtak.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Hi Sir, I follow your articles regularly and your detailed assessment is really awesome.I am 47yrs Male with wife, 20&18 years kids, elder one is in B.Tech and younger one is 12th. My wife is a home maker. Coming to financials. I have 4 houses including the one residing worth 10cr(total) and getting rental income of 70k per month, invested in stocks and MFs worth 60L, have foreign stocks of worth 1.7cr, accumulated pf around 1.3cr. I have farm lands worth 5cr. Have 1.2cr loan and salary of ~4L (net). current sips in equity 70k/month, have 5Cr term plan, health insurance for family 50L. How do I plan my retirement at 52-53years assuming 80 years life expectancy. Don't want to depend on kids and need regular income ~3-4L per month.

Ans: Asset Evaluation
Real Estate:
You own four houses worth Rs 10 crore, generating Rs 70,000 monthly rental income. This is a solid base for passive income. However, real estate can have fluctuating maintenance costs, tenant issues, and varying rental yields over time.

Stocks and Mutual Funds:
Your Rs 60 lakh investment in stocks and mutual funds is a commendable step. Active mutual funds offer professional fund management and can outperform index funds over time.

Foreign Stocks:
Your Rs 1.7 crore portfolio in foreign stocks adds geographical diversification. Monitor currency exchange fluctuations and global market trends.

Provident Fund (PF):
With Rs 1.3 crore in PF, this is a reliable retirement corpus. The fund provides fixed returns and tax benefits, adding stability.

Farm Lands:
Farm lands worth Rs 5 crore are an illiquid but valuable asset. They might not generate consistent income unless leased or developed.

Loans:
A loan liability of Rs 1.2 crore needs prioritised repayment. Focus on loans with higher interest rates first.

Insurance Coverage:
A Rs 5 crore term plan is robust. Your Rs 50 lakh health insurance is sufficient for unexpected medical emergencies.

Retirement Goals
You need Rs 3–4 lakh monthly for 27–28 years post-retirement.
The portfolio must generate steady, inflation-adjusted returns.
Action Plan for Retirement
Debt Management
Prepay High-Interest Loans:
Use a portion of your surplus income to prepay loans. This reduces interest outflow and increases your cash flow.

Avoid New Loans:
Focus on reducing existing liabilities instead of taking on new ones.

Portfolio Restructuring
Real Estate:
Retain essential properties. Sell underperforming or non-essential properties to reduce concentration in real estate. Invest proceeds in mutual funds or debt instruments for diversification.

Mutual Funds (MFs):
Increase SIPs in actively managed funds. They outperform direct funds due to guidance from Certified Financial Planners and MFDs. Regular funds offer better tracking and professional assistance.

Stocks:
Monitor direct equity investments closely. Consider reallocating underperforming stocks to mutual funds for better management.

Debt Instruments:
Invest in high-quality debt funds or fixed-income securities for stability. These instruments balance equity volatility and ensure steady returns.

SIP Strategy
Increase SIPs from Rs 70,000 to Rs 1 lakh/month.
Allocate 70% to equity funds for long-term growth.
Invest 30% in debt funds for stability and liquidity.
Emergency Fund
Maintain a 12-month expense reserve in liquid funds or fixed deposits.
This covers unexpected expenses without disturbing investments.
Income During Retirement
Systematic Withdrawal Plan (SWP)
Use SWPs in mutual funds to generate regular income.
Withdraw 6–8% annually from your mutual fund portfolio for a steady income stream.
Rental Income Optimisation
Review property rents regularly.
Invest part of rental income in equity or debt mutual funds for compounding.
Dividend Stocks
Retain high-dividend-yield stocks for regular income.
Reinvest surplus dividends for long-term growth.
Tax Efficiency
Equity Funds Taxation:
Long-term gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds Taxation:
Both short- and long-term gains are taxed per your income slab.

Real Estate Capital Gains:
Use exemptions under Sections 54 or 54F to save tax on property sales.

Inflation Protection
Allocate 60–70% of your portfolio to equity investments.

Equity provides inflation-adjusted returns over time.

Debt funds and fixed instruments safeguard against equity market volatility.

Estate Planning
Draft a will to allocate assets transparently among family members.
Use nomination and joint ownership to avoid legal complications.
Consider a family trust for farm lands to avoid disputes.
Periodic Review
Review your financial plan every six months.
Adjust investments based on market conditions, goals, and needs.
Consult a Certified Financial Planner regularly for updates.
Finally
A well-diversified portfolio ensures financial independence post-retirement. Focus on debt repayment, portfolio balance, and tax-efficient withdrawals. Your assets can comfortably generate Rs 3–4 lakh monthly income, adjusted for inflation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Kanchan Rai |444 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 21, 2024

Question by Kevin - Dec 19, 2024Hindi

Relationship

I am the eldest sibling in our families and aged 51. Normally, whenever anyone in the family has a problem - financial, mental, psychological, issue with people or anything else, they come up to discuss with me and share. Well, many would say I am lucky as people look up to me when they are in any kind of a problem. But that is not the case. Sadly no one is around with whom I can discuss or even think to share my issues, my problems. I do not have any friends. Sadly, yes, that is a fact and at my age, I dont expect that here we have a culture where we can get to making friends, at least the kind of friends with whom you can confide, share your feelings, problems. I tried and failed. Maybe because I am introvert or maybe I am too cautious. To make it more complicated, I dont work in the regular kind of job. I am a lone person who works as a freelance from home. This limits my outreach when it comes to interacting with real people. I have clients, business contacts, but I cannot get personal with them. It will never be a good choice. My wife is busy with her job + we do not have any relation beyond the daily matters related to household and it has been more than 10 years now that we live this way. Tried to sort out things with her but she just does not have time and interest (after all who wants to add on to tensions, stress). My daughter is after all my daughter - I cannot share these with her, and definitely at 10 she is too young to be one to discuss such stuff. I am not sure how far this issue can be fixed but I am hopeful to find some path here.

Ans: Dear Kevin,
Starting small can be helpful. Consider connecting with people through shared interests or hobbies, either online or in person, where the pressure to immediately open up is minimal. Online communities, local meetups, or volunteer activities can create low-stakes opportunities to connect with like-minded individuals. The goal isn’t to instantly find someone to confide in but to slowly build a sense of belonging and companionship.

Your relationship with your wife appears to be another significant source of emotional distance. While her lack of interest in deep conversations may seem like a barrier, it’s worth exploring other ways to reconnect—perhaps by spending time together in shared activities or revisiting moments that once brought you closer. Sometimes, relationships stuck in routines benefit from new experiences or even professional counseling to navigate the underlying dynamics.

Regarding your daughter, while it’s clear she cannot shoulder your emotional burdens, she can still be a source of joy and connection. Investing time in activities with her can provide a sense of fulfillment and grounding that counters loneliness.

Above all, remember that reaching out for professional support, such as therapy, is not a sign of weakness but an act of self-care. A therapist can provide a safe space to express your feelings and help you develop strategies to foster deeper connections and manage emotional isolation.

You deserve to feel supported and connected, and even if the journey to finding that seems long, every step you take toward opening up or seeking out others is a move toward a more fulfilling and less lonely existence.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Nov 22, 2024Hindi

Money

My Question is for New Tax Regime for Financial Year 2024 – 25. Total gross Income is Rs.9 lakhs and along with that income from share / stock trading i.e short term gains of Rs. 1 lakh. Could you please help me advise if what would be the tax liability?

Ans: 01. Considering your Income of Rs.9.00 lakhs as business income & Rs.1.00 lakh as STCG on securities, without any tax savings, your tax liability would be around Rs.62,400.00 in New tax regime. If we opt for the old tax regime, your tax liability would be much more than this.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Question by SA - Nov 11, 2024Hindi

Money

I got a residential property through will from my mother,,property is 30 years old and i am planning to sell it, in that case i am going to get Rs 165lacks,, what will be the tax implication and how to avoid the same kindly advise i am 55 years old married man with a daughter

Ans: 01. In this case, you would be subjected to LTCG (Long Term Capital Gain) tax.
02. To work out LTCG, you should reduce its Cost from the Sale proceeds (Rs.165.00 lakhs).
of property, which was costed to your mother.
03. However, following details may help you to assess your tax liability.
Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
04. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
05. To avoid tax, you may invest in purchase of some house property. Exemption available would be minimum of Cost of new house property or the LTCG, which ever is less.
06. You have the option to purchase Capital Gain Bonds of NHAI etc., for tax saving.
07. Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 19, 2024Hindi

Money

Hello Sir, I worked in a Pvt Ltd company from 2006 to 2011, and they had their own PF trust. The company was later sold off to another firm. I still haven't withdrawn the my PF amount. How will i be able to do that. I have the PF number and ESP number. Since this was before 2011 , my UAN is not linked to this account. How will i be able to retrieve my PF amount that is still stuck here.

Ans: Kindly keep in touch with your previous employer (present owner of the company), in this connection. There should not be any problem in getting your PF amount, except certain formalities/ forms to be submitted.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Dear Guru. I have inherited a property in Mumbai from my deceased father which was purchased in 1983 by him. If today i sell the property which is worth 2.60 Crs whats my capital gains tax and how will it be calculated

Ans: 01. In absence of exact figures, it is not possible to calculate your Capital Gains Tax. However, following details may help you to assess your tax liability.
02. Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
03. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
04. Most welcome for any further clarifications. Thanks.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 21, 2024

Question by Anil - Dec 20, 2024Hindi

Money

Top4 sips with 15k amount suggest me

Ans: Here’s an updated strategy for your Rs. 15,000 SIP allocation, replacing the sectoral/thematic fund with a small-cap fund for better long-term growth potential.

Suggested SIP Allocation (Rs. 15,000)
Large-Cap Fund

Allocation: Rs. 4,000/month
Objective: Stability and steady growth by investing in India’s top 100 companies.
Why Choose: Provides consistent returns and low volatility in your portfolio.
Flexi-Cap Fund

Allocation: Rs. 4,000/month
Objective: Diversified exposure across large, mid, and small-cap stocks.
Why Choose: Offers balanced risk and returns with flexibility during market cycles.
Mid-Cap Fund

Allocation: Rs. 3,500/month
Objective: Tap into the growth potential of medium-sized companies.
Why Choose: Higher returns with manageable risk compared to small caps.
Small-Cap Fund

Allocation: Rs. 3,500/month
Objective: Focus on fast-growing small-cap companies.
Why Choose: High-growth potential over the long term, though with higher volatility.
Why Include Small-Cap Funds?
Long-Term Growth: Small-cap companies have immense potential to grow significantly over time.
Diversification: Adds exposure to an underrepresented segment, complementing large and mid-caps.
High Returns: Potential for higher returns compared to other categories, albeit with higher risk.
Key Considerations
Investment Horizon: Stay invested for at least 7-10 years to mitigate short-term volatility.
Active Fund Management: Avoid direct or index funds to leverage professional expertise.
Regular Monitoring: Review fund performance periodically with a Certified Financial Planner.
Tax Implications
Equity Funds:
LTCG above Rs. 1.25 lakh/year taxed at 12.5%.
STCG (held less than 1 year) taxed at 20%.
Final Insights
This updated allocation ensures a mix of stability, moderate risk, and high growth. With consistent SIPs and periodic reviews, you can achieve robust wealth creation over the long term. A Certified Financial Planner can assist in optimising your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

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

Sign up

email

uname

mobile no

Country Code

Mobile number

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

Already have an account?

LOGIN

x