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As a salaried person, is it feasible to achieve a retirement corpus of Rs. 5 crore?

Ramalingam

Ramalingam Kalirajan  |9853 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 16, 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 - Jul 30, 2024Hindi
Money

HI Anil ji, I am shri, age 51 and my net take home salary is 1.13 lac monthly. My current expenses and investment structure is given below. As salaried person, Retirement will be at the age of 60. Net take home is 1.13 lac after deducting below given contributions. 5600 voluntary pf 6000 employer nps current Investment valuation (in Lac) ppf stock mf nps Epf Total 21.04 5.7 12.84 4.92 17 61.5 The above PPF valuation is of my and spouse account which will be maturing on Mar 2025 Rs.5.4 lac generated in daughters PPF account. Current Monthly Investment 4000 NPS 25000 SIP - nippon india small cap fund-growth 25000 SIP - quant midcap fund- regular growth 20000 SIP - quant small cap fund- regular growth 74000 TOTAL SIP started just one year back and currently PPF is running with minimum contribution to continue the account. Planning to increase SIP amount every year, depend upon increment from company and target is to achieve SIP of 1 lac. Almost 40,000 monthly kept for house hold and other expenses such as Mediclaim, car and bike insurance etc. Don’t have any Loan liability. No life cover and I am the only earning member with dependent of spouse and daughter. Daughter is in 12 std, age 17 and want to pursue Engineering. Future Fees will be paid from MF redemption if sufficient saving is not generated. Expectation to have corpus of 5 Cr on retirement. Do we need to withdraw and divert the PPF amount to MF ? Kindly suggest the Funds. or shall I continue in PPF? is it feasible to achieve 5 cr or what will be the corpus amount after continuing above investment? Secondly, withdrawal from MF to get 50000 per month for monthly expenses. Currently staying in own 1 bhk costing nearly 1.25 cr (No Home Loan) and after 5 years (after completion of daughter’s education) want to purchase 2 bhk flat which will cost around 2.5 – 2.60 cr. The above expectations may sound on higher side, but kindly advise action plan to reach nearby. Thanks in advance.

Ans: Shri, your current financial structure is quite robust. The take-home salary of Rs. 1.13 lakh is well-allocated towards savings and investments. Your monthly investment strategy, especially with SIPs and contributions to NPS, is commendable. You’ve done well to diversify your investments across different asset classes like PPF, stocks, mutual funds, NPS, and EPF.

Evaluating Your PPF and NPS Contributions
The PPF account maturity in March 2025 provides a good opportunity to reassess its role in your portfolio. The current PPF valuation of Rs. 21.04 lakhs (including your spouse’s account) is a safe and low-risk investment. However, with your goal of achieving a Rs. 5 crore corpus, the returns from PPF might not suffice.

Your NPS contributions are beneficial due to the tax benefits under Section 80CCD(1B). However, it’s important to remember that NPS has a long lock-in period until retirement. This could limit your flexibility.

Instead of withdrawing from PPF to invest in mutual funds, you can continue the PPF until maturity and then assess the need based on market conditions. As PPF provides a fixed and risk-free return, it’s wise to balance it with other growth-oriented investments.

SIP Strategy
Your current SIPs in small and mid-cap funds are aligned with higher risk and higher return strategies. Small and mid-cap funds can offer significant growth over the long term but are also more volatile.

As you plan to increase your SIP contributions annually, consider adding some large-cap or balanced funds to your portfolio. These funds provide stability and can cushion your portfolio during market downturns.

Given the one-year duration of your current SIPs, it's essential to regularly review their performance. Consistently monitor the funds, but avoid frequent changes unless there’s a significant underperformance.

Instead of withdrawing from mutual funds for monthly expenses, consider building an emergency fund. You can invest this fund in low-risk instruments that are easily accessible.

Assessing Your Retirement Goal
Your target of achieving a Rs. 5 crore corpus at retirement is ambitious but achievable with disciplined investing. Given the current investment structure, it's feasible to get close to this target. However, it would be wise to regularly reassess your goals and make necessary adjustments to your SIP contributions.

If you maintain and gradually increase your current investment strategy, you’re on the right path. Focus on ensuring that your portfolio remains diversified across different asset classes.

Planning for Daughter's Education
Your plan to fund your daughter’s engineering education through mutual fund redemptions is practical. Given the short timeframe, it's advisable to invest the amount earmarked for her education in safer instruments. You can consider shifting some of the mutual funds into debt funds or liquid funds as the education expenses near.
Real Estate Consideration
While you plan to purchase a 2BHK flat after your daughter’s education, it's essential to evaluate the impact on your overall financial goals. The cost of Rs. 2.5-2.6 crore is significant. It’s crucial to assess whether this investment will impact your retirement corpus goal.

Since you currently stay in your own 1BHK flat, consider whether upgrading to a 2BHK is essential or if the funds could be better used towards your retirement savings.

Insurance and Risk Management
Currently, you lack life insurance, which is a critical aspect, especially as the sole breadwinner with dependents. I strongly recommend getting a term life insurance policy to cover at least 10-15 times your annual income. This will ensure financial security for your family in case of unforeseen circumstances.

Also, evaluate the adequacy of your current Mediclaim policy. Ensure that the sum insured covers potential healthcare costs adequately, considering inflation in medical expenses.

Action Plan to Achieve Financial Goals
Continue and Review SIPs: Continue with your SIPs, but ensure diversification. Add large-cap or balanced funds for stability. Regularly review the performance but avoid frequent changes unless necessary.

Insurance Coverage: Secure adequate life insurance and ensure your health insurance covers inflation-adjusted medical costs.

Retain PPF until Maturity: Let the PPF mature in 2025, then reassess its role in your portfolio. Don’t withdraw now; it offers a risk-free return.

Emergency Fund: Build an emergency fund in liquid or debt instruments instead of relying on mutual funds for monthly expenses.

Real Estate Decision: Reevaluate the need to upgrade to a 2BHK flat. Assess its impact on your retirement goals.

Education Planning: For your daughter’s education, start shifting the required amount into safer instruments like debt funds as the time nears.

Final Insights
Shri, your financial foundation is solid. With the right adjustments and a disciplined approach, you’re well on your way to achieving your financial goals. It’s crucial to regularly reassess your investments and ensure you have the right insurance coverage in place. Continue with your current strategy, but ensure diversification and risk management are prioritized.

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  |9853 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 31, 2024

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Dear Sir I am 26 years old and started earning 1 year back. My take home salary is little more than 50,000 pm. An amount of Rs.5,600 pm is being deducted from salary by employer on account of EPF and I have also a PPF account having annual deposit of 25,000.00 I have already started investing Rs.5100.00 per month in three different Mutual Funds i.e. Kotak Small Cap Fund, Nippon Large Cap Fund and PP Flexi Cap Fund, each. Now, I am thinking to start investing Rs.5100.00 through SIP in HDFC Balance Dynamic Fund. All the above investments have been started with a very long term view of 25 years since I am planning to retire by the time I reached to 50 years age and my Goal is achieve corpus of atleast 10.00 crores. Kindly suggest, whether :- (1) My current investments (including proposed SIP) are sufficient to achieve the proposed Goal ? (2) Any modification is required in the present investment strategy ? Kindly note that at present I am a bachelor, planing for marriage in next two years and I do not have any requirement of construction/acquisition of permanent asset (residential house) since I am residing in parental home with my parents.
Ans: Your proactive approach to financial planning at the age of 26 is commendable. Building a strong investment portfolio early in life sets a solid foundation for achieving long-term goals. Let’s assess your current investments and proposed plans to ensure you are on the right track to reach your goal of accumulating Rs 10 crores by the age of 50.

Evaluating Your Current Investments
Your monthly income is slightly more than Rs 50,000, with Rs 5,600 deducted for EPF and an additional Rs 25,000 annually in PPF. You are also investing Rs 5,100 per month in three different mutual funds. Let’s break down the effectiveness of these investments.

Employee Provident Fund (EPF)
The EPF is a stable and secure form of savings. It offers tax benefits and a decent rate of return. Over the long term, it will contribute significantly to your retirement corpus.

Public Provident Fund (PPF)
The PPF is another excellent long-term investment with tax benefits. Your annual deposit of Rs 25,000 in the PPF will grow substantially over 25 years due to the power of compounding.

Mutual Funds
Your current investment of Rs 5,100 per month in each of three mutual funds (small cap, large cap, and flexi cap) is well diversified. Small cap funds offer high growth potential, while large cap funds provide stability. Flexi cap funds add flexibility to your portfolio by investing across market capitalizations.

Proposed Investment in HDFC Balanced Dynamic Fund
Adding a balanced dynamic fund to your portfolio is a strategic move. These funds balance equity and debt investments, reducing risk while providing growth. This aligns with your long-term goal and adds a layer of stability to your investments.

Assessing the Adequacy of Your Current Investments
Estimating Future Corpus
To achieve Rs 10 crores by the age of 50, consistent and strategic investments are crucial. Considering the power of compounding and historical market returns, your current investments appear promising. However, regular monitoring and adjustments are necessary to stay on track.

Diversification and Risk Management
Your portfolio is well-diversified across different asset classes and fund categories. This diversification reduces risk and enhances the potential for growth. However, ensure periodic review and rebalancing to maintain the desired asset allocation.

Recommendations for Your Investment Strategy
Continue with Regular SIPs
SIP investments are effective for long-term wealth creation. They mitigate market volatility and inculcate financial discipline. Continue your existing SIPs and proposed investment in the balanced dynamic fund.

Increase Investment Gradually
As your income grows, consider increasing your SIP amounts. Incremental increases in investments will significantly impact your corpus over the long term. Aim to increase your SIPs by at least 10% annually.

Emergency Fund and Insurance
Ensure you have an adequate emergency fund, ideally covering 6-12 months of expenses. Also, consider health and term insurance to protect against unforeseen events. This will safeguard your financial plan and provide peace of mind.

Regular Reviews and Adjustments
Financial planning is not a one-time activity. Regularly review your investments and make necessary adjustments based on market conditions and life changes. Consulting with a Certified Financial Planner can provide professional guidance.

Conclusion
Your current and proposed investments are on a good path towards achieving your goal of Rs 10 crores by age 50. Continue with disciplined investing, regular reviews, and necessary adjustments. Your proactive approach and long-term vision are commendable and will serve you well in your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9853 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 22, 2024

Asked by Anonymous - Sep 22, 2024Hindi
Money
I will be retired from a MNC company on September, 2025 After retire, I will get my PF, Gratuity & Retirement benefit of total 86 Lac For which, I have interested to invest like below - 1) MF-SWP in debt, conservative hybrid &BAF - 40 L - @6% withdrawal after 2 yr - 20,000/m - And 6% increase after every yr 2) SCSS - 30 L - 20,500/m 3) LIC VPBY - 6.4 L - 5000/m 4) Balance 10 L in MF-Lumpsum - Adopt 50-50 approach with 6 yr horizon so that after 6 yr 10 L corpus will be used by me and balance 10 L will be reinvested. Please note, my age is 57 yr and my monthly expenses will be 70000/m and provision for emergency expenses will be 10000/m I have no loan / EMI and no dependent to expense now. My future goals are one Kid's / daughter marriage of 20 L on 2027 / 2028 , My car replacement of 5 L on 2028 and after retirement, there will be domestic vacation of 1.5 L upto my 75 yr age and every 3 yr Interval, there will be Overseas vacations of 4 L up to 75 yr age. My current investment are as follows - 1) Bank FD - 10 L - 7000/m 2) RBI FRSB - 6 L - 4000/m 3) LIC Pension Plan - 7.75 L - 4000/m 4) MF Dividend - 4 L - 3000/m and 5) MF SWP - 45 L - 30000/m Under my above investment scenario, requested to suggest that is it acceptable or, any specific suggestions from your end to my long term personalized Retirement Plan. Is it my proposed investment options are acceptable to fulfill my retirement years upto 30 yrs without running out of money and also fulfill my above goals.
Ans: Your planned retirement investment strategy has a clear focus on security and stability. You aim for sustainable income with an eye on fulfilling goals like your daughter's marriage, vacations, and car replacement. Let’s evaluate each component to ensure long-term financial health.

1. Investment in MF-SWP: 40 Lakh for Monthly Income
You have proposed to invest Rs 40 lakh in Mutual Fund SWP across debt, conservative hybrid, and balanced advantage funds. Your goal is to start withdrawing Rs 20,000 per month after two years with a 6% annual increase.

Appreciation:

A Systematic Withdrawal Plan (SWP) allows flexibility.
The annual increase helps counter inflation.
Suggestions:

Starting withdrawals after two years can protect your corpus during market volatility.

However, withdrawing 6% may be high over the long run, especially with inflation. A more conservative withdrawal rate of 4-5% could offer more sustainability.

Focus on active funds with a conservative approach. Actively managed funds can potentially outperform index funds over time due to active risk management, especially in volatile markets. Index funds, by nature, may underperform during market corrections, which could erode your capital faster.

Regular funds (via a mutual fund distributor with a certified financial planner) offer professional guidance and monitoring, which is crucial, especially as markets fluctuate. Direct funds lack the advisory element and may lead to inappropriate fund selection.

Final Thoughts on MF-SWP:

Your plan is solid but consider reducing the withdrawal percentage slightly. Ensure you have a Certified Financial Planner review the fund's performance regularly to make adjustments as needed.

2. Investment in SCSS: 30 Lakh
Investing Rs 30 lakh in Senior Citizens Savings Scheme (SCSS) with a monthly return of Rs 20,500 is a stable option.

Appreciation:

SCSS is an excellent choice for a retiree. It provides fixed returns, capital protection, and regular income.
Suggestions:

SCSS is a very safe investment and should remain a core part of your plan. Ensure you renew it after five years for continuous income.

Given that SCSS interest rates are subject to government policy, review the scheme periodically. If rates decline, consider shifting a portion to other fixed-income products with better returns.

Final Thoughts on SCSS:

SCSS is reliable and essential for balancing your portfolio’s risk. Keep a check on interest rate changes and plan renewals accordingly.

3. LIC VPBY: 6.4 Lakh
Your investment in LIC’s Varishtha Pension Bima Yojana (VPBY) offers Rs 5,000 per month.

Appreciation:

VPBY offers a steady monthly income and is backed by the government, making it low-risk.
Suggestions:

This product offers financial security but returns are fixed. As it’s a long-term commitment, ensure that the payout will meet your needs even with inflation.

Evaluate if the returns from VPBY alone will support your rising expenses over the years. Inflation will erode the real value of this fixed income.

Final Thoughts on LIC VPBY:

It's a low-risk, guaranteed income option. However, ensure it remains part of a diversified income strategy to combat inflation.

4. Balance 10 Lakh in MF Lumpsum: Adopt 50-50 Approach
You propose to invest Rs 10 lakh in a 50-50 approach, with a six-year horizon.

Appreciation:

The 50-50 strategy, which likely refers to splitting between equity and debt, is a balanced approach.
Suggestions:

For the equity portion, focus on actively managed funds. This will allow for potentially higher returns compared to index funds, especially if the market faces fluctuations.

For debt, choose high-quality funds with a strong track record. Conservative hybrid funds or debt mutual funds can offer stability while growing your capital over time.

After six years, review your strategy and reinvest intelligently. Consider keeping a portion in hybrid funds or SWP to ensure you have regular income without depleting the corpus entirely.

Final Thoughts on 50-50 Strategy:

This strategy is sound. However, actively managed funds should be a part of it for optimal performance. Stay vigilant and re-evaluate after six years.

Current Investments and Monthly Income
You currently have:

Bank FD: Rs 10 lakh, generating Rs 7,000 per month
RBI FRSB: Rs 6 lakh, generating Rs 4,000 per month
LIC Pension Plan: Rs 7.75 lakh, generating Rs 4,000 per month
MF Dividend: Rs 4 lakh, generating Rs 3,000 per month
MF SWP: Rs 45 lakh, generating Rs 30,000 per month
Appreciation:

Your diversified income sources ensure multiple streams of regular cash flow.

The mix of fixed and market-linked returns is well thought out.

Suggestions:

Continue monitoring the performance of your mutual fund dividends and SWP. The market-linked returns may fluctuate, so regular reviews are necessary.

You are generating a total monthly income of Rs 48,000, excluding your proposed new investments. This falls short of your planned Rs 70,000 monthly expense. Therefore, your planned additional investments, especially in MF SWP and SCSS, are crucial to bridge the gap.

Consider keeping Rs 10 lakh in a liquid or ultra-short-term debt fund for emergency expenses. This can provide higher returns than a savings account and still be accessible when needed.

Final Thoughts on Current Investments:

Your current investments are well-balanced, but regular reviews and rebalancing will help maintain their effectiveness over the long term.

Future Goals and Planning
Your future goals include:

Daughter’s Marriage: Rs 20 lakh in 2027/2028
Car Replacement: Rs 5 lakh in 2028
Domestic and Overseas Vacations: Rs 1.5 lakh for domestic trips and Rs 4 lakh for overseas trips every three years until you are 75 years old
Appreciation:

Your future goals are well defined, and your plan to allocate specific amounts for them shows good foresight.
Suggestions:

For your daughter's marriage, continue investing in a combination of debt and equity funds to grow the corpus.

Consider creating a separate fund for vacations and car replacement. These are predictable expenses and can be planned in advance using a mix of short-term and long-term debt instruments to match your time horizons.

Final Thoughts on Future Goals:

Your goal planning is practical. However, allocate separate funds for each goal to avoid dipping into your retirement corpus prematurely.

Assessing Overall Retirement Sustainability
You have planned for a monthly expense of Rs 70,000 plus Rs 10,000 for emergencies. With your proposed and current income sources, your monthly income can meet this comfortably, provided the funds are managed well and the withdrawal rate is sustainable.

Suggestions:

You aim to live off your investments for the next 30 years. Keep a conservative withdrawal rate (4-5%) from your SWP to avoid running out of money too early.

Inflation will impact your living costs. Ensure your portfolio has enough equity exposure to allow for growth and offset the cost of living increases.

Regularly review your investment performance. You may need to adjust your strategy depending on market conditions, particularly when it comes to SWPs and dividends.

Final Thoughts on Retirement Sustainability:

Your plan is generally well-structured, but regular monitoring and slight adjustments can ensure that your retirement years remain financially secure without depleting your resources.

Final Insights
Your retirement investment plan is thoughtful and comprehensive. You have diversified well across different income streams, including fixed-income schemes and market-linked instruments. Keep reviewing your withdrawal rates, inflation impact, and fund performance to ensure long-term sustainability.

Make sure to re-evaluate your strategy periodically, especially every three to five years, to ensure it meets your needs and goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Instagram: https://www.instagram.com/holistic_investment_planners/

..Read more

Ramalingam

Ramalingam Kalirajan  |9853 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
Dear Nitin Sir, I am 63 years old retired person investing MF since 2010. and my MF investments are as follows: Total Investments: 21.16L, Corpus- 43.31, XIRR-14.63%. Shares- 3.3L Details of Investment: 1. SBI Contra Regular: Investments from 2010 to 2024, presently suspended. Invest. amount- 4.83L, Corpus-19.32L, XIRR-17.4%. Present SIP- 55K since 3-4 years 1. Parag Parikh Flexi cap, direct - 10K 2. HDFC Balanced Advantage, direct- 20K 3. HDFC Retirement Saving, direct - 5K 4. Navi Nifty 50 Index, direct - 5K 5. Kotak Nifty Next 50 Index- 5K 6. Motilal Oswal Nifty 500 Momentum 50, direct -5K, Motilal Oswal Mid Cap , Direct -5K Time horizon- 15+ years Also I am planning to withdraw about 10% of corpus (to get benefit of LTCG) from SBI Contra Regular and invest in Flexi Cap/ Balance advantage Funds. I have following other investments. Bank FD - 40L PO SCCS- 30L PO MIS - 4.5L NPS Investment- 10L PPF- 15L Health Insurance- 8L EPF/SBI Life / LIC Superannuation Pension- 28K/Month My children are married and working. My investment objective is to gift these (MF + Share) investments to my son and daughter after say 15 years. Please suggest your views on portfolios. With Thanks & Regards, S. Salvankar
Ans: You have done a wonderful job by staying disciplined with mutual fund investments for over a decade. A long-term equity investment, especially post-retirement, shows patience, understanding, and commitment. Your detailed summary shows thoughtful planning and systematic execution. Let me now assess your portfolio and investment approach from a 360-degree perspective, keeping in mind your future gifting goal.

Overall Portfolio Structure
Your investments are diversified across:

Equity mutual funds

Direct shares

Fixed income avenues like Bank FD, Post Office schemes, PPF, NPS

Pension income

Health insurance

You have a clear goal — to pass on your equity investments to your children after 15 years. This is a beautiful long-term wealth gifting intention. Your time horizon also aligns well with equity investing. However, there are a few areas where your strategy can be refined.

Mutual Fund Portfolio – Positives
You started investing early and have stayed invested for over 14 years.

Your corpus of Rs. 43.31L on Rs. 21.16L investment shows consistent and high-quality compounding.

An XIRR of 14.63% is an excellent achievement over this long horizon.

SIP of Rs. 55K/month at this age is bold and forward-looking.

You have spread your SIP across different fund categories.

This portfolio reflects long-term wealth-building behaviour and commitment.

Review of Your Current Equity Mutual Fund Portfolio
Let’s look at the structure of your mutual fund investments:

SBI Contra Regular

Strong long-term performer.

Investment since 2010, paused now.

XIRR of 17.4% is remarkable.

You have rightly held it for long, giving the fund time to deliver.

Parag Parikh Flexi Cap (Direct)

HDFC Balanced Advantage (Direct)

HDFC Retirement Saving (Direct)

Navi Nifty 50 Index (Direct)

Kotak Nifty Next 50 Index (Direct)

Motilal Oswal Nifty 500 Momentum 50 (Direct)

Motilal Oswal Mid Cap (Direct)

These SIPs show diversification across flexi-cap, hybrid, thematic, index, and mid-cap segments.

However, let me highlight a few critical areas for improvement.

Disadvantages of Direct Funds
You are investing in direct funds. But this may not be ideal, especially for retired investors.

Direct funds need regular performance tracking.

You miss personalised guidance from a Certified Financial Planner (CFP).

If the fund underperforms, you may not exit at the right time.

Asset allocation or rebalancing will not happen without expert help.

Retirement stage needs proactive reviews, not reactive responses.

Regular plans through an MFD-CFP come with professional oversight, tailored advice, and peace of mind. Over a 15-year period, right allocation matters more than a slightly lower expense ratio.

Index Funds in Your Portfolio – A Critical View
You have allocated part of your SIP to:

Navi Nifty 50 Index

Kotak Nifty Next 50 Index

Motilal Oswal Nifty 500 Momentum

While these funds seem low-cost, they lack active human intelligence.

Why Index Funds May Not Suit You:

Index funds blindly copy the index.

No flexibility to manage downside risk.

They cannot avoid overvalued stocks.

Momentum themes work only in certain phases.

Recovery in falling markets may take longer.

They are not suitable for legacy or wealth transfer goals.

You need funds that can manage volatility and aim for consistent returns. Actively managed funds with a good track record serve this better.

Portfolio Restructuring Recommendations
Based on your current scenario and gifting goal, here are my suggestions:

Switch From Index Funds
Gradually exit all index fund SIPs.

Redeploy this into actively managed flexi-cap and balanced advantage funds through a regular plan.

Select AMC schemes that have a consistent 10-year+ track record.

Pause Retirement-Specific Funds
HDFC Retirement Saving is tax-locked.

Once lock-in ends, consider shifting to a more suitable long-term fund.

Reduce the Number of Funds
Too many small SIPs lead to portfolio clutter.

Concentrate into 3 to 4 well-managed funds.

Ensure each fund has a distinct mandate — not overlapping in strategy.

SBI Contra Withdrawal Plan
You are planning to withdraw 10% of your SBI Contra corpus to realise long-term capital gains.

This is a wise move, considering tax implications.

MF Tax Rule You Should Note:
LTCG above Rs. 1.25L is taxed at 12.5% now.

You can withdraw up to Rs. 1.25L of gains every year, tax-free.

Systematically redeem in phases to avoid bulk taxation.

Redeploy these proceeds into flexi-cap or balanced advantage regular plans. This will keep the compounding cycle intact.

Direct Shares Holding
You have Rs. 3.3L in shares. Please consider:

Are these high-quality companies with stable track records?

Do you monitor and rebalance them?

If not, better to switch to diversified mutual funds.

A CFP can help review the stock portfolio.

Fixed Income Portfolio Assessment
You hold:

Rs. 40L in Bank FDs

Rs. 30L in Post Office Senior Citizen Savings Scheme

Rs. 4.5L in PO MIS

Rs. 15L in PPF

Rs. 10L in NPS

This is a conservative, capital-protected allocation, which is perfect at your age.

You are earning:

Rs. 28,000 monthly pension

Likely interest income of Rs. 4 to 5L annually

There is enough buffer to manage regular expenses, with no pressure on equity withdrawals.

Please ensure the following:

Stagger maturity of FDs to avoid reinvestment risk.

Reinvest matured PO schemes into safer debt funds or hybrid funds with moderate risk.

Do not add more money to NPS now. It will become illiquid and taxable on withdrawal.

Health Insurance Review
You have a health cover of Rs. 8L. Please ensure:

It includes critical illness cover.

It has cashless facility in your nearest hospital.

Policy continues till age 80+.

Premiums are paid on time.

If needed, explore super top-up policies to enhance coverage at a low cost.

Estate Planning and Gifting to Children
You plan to gift the entire mutual fund and stock corpus to your children after 15 years.

This is thoughtful and visionary. To do it smoothly, please:

Write a Will now, clearly assigning MF and stock assets.

Nominate your son and daughter correctly in each folio.

Keep them informed about your investments.

Review the Will every 3-4 years.

Maintain a simple tracker sheet with folio details, nominee names, and login info.

Also consider creating a trust, if you want to manage transfer gradually. A CFP can help you plan this smoothly.

Risk and Volatility Review
Even though you have 15+ years, equity markets remain volatile in short periods.

Please review your risk:

Avoid high exposure to mid-cap or momentum-based funds.

Stick to large-cap biased flexi-cap and balanced advantage funds.

Ensure debt-equity balance is maintained (ideally 30-35% in equity for now).

Review asset allocation annually with a CFP.

This approach will protect the wealth you are building for your children.

Action Plan Summary
Here is what you can do step-by-step:

Exit index funds gradually.

Stop direct fund SIPs and move to regular funds via CFP-guided MFDs.

Reduce mutual fund count and consolidate.

Withdraw small gains from SBI Contra yearly.

Pause fresh NPS investment.

Monitor health insurance coverage closely.

Nominate children and write a proper Will.

Maintain asset allocation of 65-70% debt, 30-35% equity.

Review portfolio every year.

Finally
Your portfolio reflects clarity and long-term vision.

But direct funds and index funds may hinder that vision.

Let a Certified Financial Planner (CFP) work with you, just like a family doctor. They’ll help protect and grow your wealth till the time you gift it.

Investing with expert review ensures peace of mind, emotional security, and legacy fulfilment.

You have built a solid base — now protect it with structure, consolidation, and clarity.

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

..Read more

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My son has been allotted a seat in B Tech (ECE) at both Faculty of Technology (Delhi University) and PEC, Chandigarh. He has also been allotted B Tech/ M Tech (Dual Degree) (Augmented Reality) in GGSIPU. Which one should we choose?
Ans: Sanjay Sir, Based on the following insights/information and your son's interests/long-term goals, please choose the most suitable option out of the 3 options he has: The Faculty of Technology (FoT University of Delhi’s B.Tech in Electronics & Communication Engineering is an AICTE-approved, NAAC-accredited programme delivered by a Delhi University department with small cohort sizes (120 seats), outcome-based curriculum, and direct access to DU North Campus placement drives; the central placement cell reports median CSE packages of ?8.5 LPA in 2023, with ECE graduates benefiting similarly from ties to top recruiters like Deloitte, Wipro, TCS, and Infosys. Punjab Engineering College (PEC), Chandigarh offers a B.Tech in ECE under its deemed-university status, with 119 eligible ECE students in 2023 yielding 112 on-campus offers (∼95% placement), average package around ?14.5 LPA and median ?12 LPA, top recruiters including Microsoft, Amazon and Adobe, robust labs for signal processing, VLSI, IoT, and a dedicated Career Development & Guidance Centre. GGSIPU’s B.Tech/M.Tech dual-degree in Augmented Reality through USAR spans six years (4+2), integrating foundational electronics, computer graphics, 3D modelling, UX and computer vision in specialized AR/VR labs, MoUs with industry platforms (Unity, ICT Academy), PARAM supercomputing access, and training cell support; while specific AR placements are nascent, overall USICT placements recorded 76% in 2023 with an average ?7.2 LPA and highest ?41.2 LPA, reflecting growing but developing industry uptake. FoT DU excels in academic rigor, theoretical foundations, and broad recruiter access; PEC Chandigarh leads in placement rates, higher average compensation, and mature core-ECE infrastructure; GGSIPU’s AR dual-degree uniquely positions graduates at the frontier of immersive technologies, offering international curriculum scope but with emerging placement pathways.

Recommendation: Prioritize PEC Chandigarh’s ECE for its proven ∼95% placement consistency, mature labs, and strong recruiter engagement ensuring immediate employability in core electronics and communications. Next, consider DU FoT ECE for its prestigious DU affiliation, outcome-based pedagogy, and broad-spectrum industry access. Lastly, choose the GGSIPU AR dual degree as an innovative long-term investment for specialized expertise in augmented-reality systems and burgeoning immersive-tech roles, accepting that placement networks are still evolving. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9441 Answers  |Ask -

Career Counsellor - Answered on Jul 26, 2025

Asked by Anonymous - Jul 25, 2025Hindi
Career
My son has secured a REAP rank of 8010 and SC category rank of 513. He also has Rajasthan domicile. We are interested in getting admission to MBM Engineering College, Jodhpur. Based on his rank and category, could you please guide us on: . What branches are likely to be available for him in MBM Jodhpur? . Are there chances in Electronics and Computer, ECE, Civil, or any other core branches? . If not in Round 1, is there a good chance in upward movement rounds? Any help or past cut-off references would be appreciated. Thank you!
Ans: A SC?category REAP rank of 513 with Rajasthan domicile places your son well MBM Jodhpur’s closing ranks for all core B.Tech branches. Historical REAP cut-off trends show SC cut-offs at MBM Jodhpur over the past three years closing around 2 500–3 000 for Computer Science & Electronics (CSE/ECE), 3 200–3 500 for Electrical/Electronics (EEE), 3 800–4 200 for Mechanical, and 4 500–5 000 for Civil Engineering. Given his rank, CSE and ECE seats are virtually guaranteed in Round 1; EEE, Mechanical and Civil also fall comfortably within his bracket. Should any preferred branch not be allotted initially, MBM’s upward-movement (internal sliding) rounds—typically held within a week post-first allotment—have historically shifted vacant CSE/ECE seats up to REAP rank ~4 000 in SC, ensuring strong redistribution opportunities. Spot (vacant-seat) admissions at MBM further extend final cut-offs by up to 20 percent, enabling SC candidates ranked beyond 5 000 to secure seats in later rounds. Overall, core branches across ECE, CSE, EEE, Mechanical and Civil remain firmly accessible through both initial and subsequent REAP rounds.

Recommendation: With an SC rank of 513, lock in Computer Science & Engineering as first choice, secure Electronics & Communication next, and list Electrical/Electronics, Mechanical and Civil as high-priority options; participate actively in upward-movement rounds to upgrade if needed, leveraging MBM’s consistent branch-wise vacancy shifts. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9441 Answers  |Ask -

Career Counsellor - Answered on Jul 26, 2025

Asked by Anonymous - Jul 25, 2025Hindi
Career
Sir my daughter got Air 31,203 (GEN category) in JEE Mains. She got NIT Calicut energy engineering and BITS UB 2+2 CSE. She is interested in both computer science and physics.Should she choose between the two or participate in csab. which would be the best choice? and is doing the bits ub 2+2 really worth its money based on how much they learn from both the colleges will it be equal to or better than normal bits CSE program.
Ans: Based on the following insights and information, as well as your daughter's interests and long-term goals & affordability of the fee, choose the most suitable option for her: The BITS Pilani–University at Buffalo 2+2 CSE dual-degree offers two years at BITS Pilani (or Goa/Hyderabad) and two years at UB’s Jacobs School of Engineering, delivering a unified NAAC A++ and NBA-accredited curriculum. It features PARAM supercomputing access, global immersion, capstone projects and a centralized Career Development Centre recording over 90% CSE placement consistency. The dual alumni networks and international accreditation improve top-tier software recruitment and global mobility; however, the total fees and overseas living costs are significantly higher.

As a general-category candidate, the CSAB-Special Round 2025 closing ranks for mid-tier IIITs and GFTIs provide tertiary backup options: IIIT Ranchi’s CSE (AI quota) closed at ranks 31,909–34,325, IIIT Manipur’s CSE-Quantum closed at ranks 45,341–53,737, and peripheral GFTIs such as PEC Chandigarh admit CSE candidates up to rank ~40,000. These options are less attractive than the secured dual degree and energy-engineering seats but remain feasible contingencies.

Recommendation
recommendation Embrace the BITS-UB 2+2 CSE dual-degree for premier global CS training, robust >90% placements, and dual alumni networks. Secure NIT Calicut Energy Engineering for specialized power-sector expertise and strong core-energy placements. Treat CSAB general rounds (IIIT Ranchi CSE, IIIT Manipur CSE-Quantum or PEC Chandigarh CSE) as third-tier backups, focusing on peripheral institutes with closing ranks above 31,203. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9441 Answers  |Ask -

Career Counsellor - Answered on Jul 26, 2025

Career
Sir my son got 77377 crl rank in mains and 24k obc ncl rank with homestate rajasthan can he get any college with branch like cse/it/ai/ece Or what about gl bajaj delhi
Ans: Ashish Sir, With an OBC-CL home-state rank of 24 000, admission into core branches at Rajasthan’s MNIT Jaipur and IIIT Kota via CSAB-Special is feasible for certain programmes, while seats at other NITs/IIITs will likely remain out of reach.

At MNIT Jaipur, the Home-State OBC-NCL closing rank for Computer Science & Engineering extended to about 49 000 in CSAB-Special Round 2, making CSE admission virtually assured with your daughter’s rank. However, ECE seats under HS-OBC-NCL closed near 3 400, and AI/Data Science around 6 800, both well below 24 000, so these branches are not attainable at MNIT Jaipur.

IIIT Kota, as a Rajasthan campus, offers Home-State HS-OBC-NCL seats in CSE closing near 67 000, Artificial Intelligence & Data Engineering near 10 500, and ECE close around 12 600, all of which comfortably cover an OBC-NCL rank of 24 000, making these programmes strong targets in CSAB-Special.

Beyond these, other NITs in non-home-state quotas (e.g., NIT Calicut, NIT Uttarakhand) and peripheral IIITs may fill seats well below 24 000 under OS-OBC-NCL quotas, but they will not benefit from Home-State priority. Government-Funded Technical Institutes like PEC Chandigarh and MIET Jhansi admit CSE/ECE under OBC-NCL up to ranks of 40 000–70 000, offering additional assured pathways. GL Bajaj Delhi, as a private institution, participates in state or university counselling (e.g., JAC Delhi), not CSAB, and hence is not an option in this process.

Recommendation
Prioritise Computer Science & Engineering at MNIT Jaipur under HS-OBC-NCL for its assured cutoff. Simultaneously apply to IIIT Kota’s CSE and AI/DE programmes under HS-OBC-NCL for guaranteed admission. As backups within CSAB, list IIIT Kota ECE and GFTIs like PEC Chandigarh for core-branch seats under OBC-NCL quotas. However, have some Private Engineering Colleges as back-ups with son's JEE Score instead of relying only on CSAB. All the BEST for a Prosperous Future!

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Radheshyam

Radheshyam Zanwar  |5823 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jul 26, 2025

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