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Ramalingam

Ramalingam Kalirajan  |9198 Answers  |Ask -

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

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - May 07, 2024Hindi
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Dear Sir, I have approx 2.6cr in fd + i invest about 1 lakh per month in sip in multiple fund and i am planning to continue this for next 18yrs till i retire. As of now i have accumulated 70 lakh in mf, 50 lakh in ppf and epf put together and will continue till i retire after which only i am planning to withdraw and have no loans running. I have also opened ppf in my 2 kids name and depositing in that also 3 lakh per year Pls advise if this is a good strategy or should i plan to change my investment style. I am planning to exit with approx 20cr after 18yrs will this plan be sufficient to meet my dream expectation

Ans: Assessing Your Long-Term Financial Plan for Retirement
Current Financial Position
With approximately 2.6 crores in fixed deposits and consistent investments of 1 lakh per month in SIPs across multiple funds, you've laid a solid foundation for your retirement. Your allocation of 70 lakhs in mutual funds and 50 lakhs in PPF and EPF combined reflects a balanced approach to wealth accumulation.

Long-Term Investment Horizon
Planning to continue your SIPs for the next 18 years until retirement demonstrates a commendable commitment to long-term wealth creation. By leveraging the power of compounding and disciplined investing, you're well-positioned to achieve your retirement goals.

Evaluating Investment Allocation
Your diversified investment portfolio comprising mutual funds, PPF, and EPF offers a mix of growth and stability, aligning with your long-term financial objectives. Additionally, opening PPF accounts in your children's names and contributing 3 lakhs per year reflects a thoughtful approach towards their financial future.

Analyzing Retirement Corpus Target
With a target to accumulate approximately 20 crores by the time you retire, it's essential to assess the feasibility of your plan. Consider factors such as inflation, investment returns, and lifestyle expenses to determine if your target corpus aligns with your retirement needs and aspirations.

Mitigating Risks and Enhancing Returns
Review your investment strategy periodically to ensure it remains aligned with your financial goals and risk tolerance. Consider consulting with a Certified Financial Planner (CFP) to optimize your asset allocation, maximize returns, and mitigate potential risks.

Revisiting Your Retirement Plan
Given the dynamic nature of financial markets and changing life circumstances, periodically review and adjust your retirement plan as needed. Reassess your investment allocation, contribution amounts, and retirement goals to ensure they remain realistic and achievable.

Conclusion
Your current investment strategy, characterized by disciplined SIPs, diversified asset allocation, and long-term perspective, lays a strong foundation for achieving your retirement goals. By continuing to follow this prudent approach and seeking professional guidance when needed, you're on track to realizing your dream of retiring with a substantial corpus of 20 crores.

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  |9198 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  |9198 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 20, 2024Hindi
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Hi, I am 31 years old. I am planning to retire at the age between 45 to 48. I want to generate wealth of at least 10Cr by the time I retire. As of today, I have MF corpus of 28L(17.5L/10.4L) with monthly SIPs of 42500. Current ongoing SIPs in 1. Quant Active Fund - 5k 2. Axis Midcap Fund - 5k 3. Mirae Asset ELSS - 5k 4. SBI Small Cap - 5k 5. Nippon India US Equity Opp. Fund - 2.5k 6. DSP ELSS Tax Saver - 1k 7. Mirae Asset Large & Mid Cap - 5k 8. Nippon India Small Cap - 5k 9. Quant Mid Cap - 3k 10. Quant Small Cap - 3k 11. Quant Flexi Cap - 3k There are 3 Stopped SIPs 1. Axis Bluechip Fund - 1.5L Invested / 2.07L valuation 2. Nippon India ELSS Tax Saver - 94k invested / 2.06L valuation 3. Aditya Birla SL ELSS Tax Saver - 94k invested / 1.64L Valuation Please suggest if I need to change my strategy in investing MF with above ongoing and stopped SIPs. Also, on top of MF investment, I have, PF corpus 11.5L with expected 8% YoY contribution. NPS corpus 11L with expected 8% YoY contribution. 30L in FDs with 9% compounding interest rate and treating same as emergency fund. 6.25L in stocks. Investing in individual stocks and via smallcase baskets(Enery, Banking and Metal Tracker) with 20-25k on quartely basis. PPF corpus of approx. 5L with 5k per month contribution with 9 years remaining. HDFC SL ProGrowth Plus with Sum Assured 12L with pending 8 premius of 60k per year. Me and my wife don't have any term or health insurance. Both of us are relying on corporate health insurance for family. I have home loan of 1.2Cr with EMI of 80k which is a biggest chunk of in hand salary. Household and personal expenses are around 20k per month. So, looking at above details how should I plan my financials for kid's(no kid yet) education/marriage and post retirement life ?
Ans: Your Current Financial Situation
Let’s review your current situation. You have a diverse portfolio with SIPs, mutual funds, stocks, FDs, and more.

Investments
Mutual Fund Corpus: Rs 28 lakhs
Monthly SIPs: Rs 42,500
Provident Fund: Rs 11.5 lakhs
NPS: Rs 11 lakhs
Fixed Deposits: Rs 30 lakhs
Stocks: Rs 6.25 lakhs
PPF: Rs 5 lakhs
HDFC SL ProGrowth Plus: Sum Assured Rs 12 lakhs
Liabilities
Home Loan: Rs 1.2 crores with an EMI of Rs 80,000 per month
Expenses: Rs 20,000 per month
Insurance
Corporate Health Insurance: Only relying on this for health coverage
Investment Strategy Evaluation
You have a robust and diversified investment strategy. Let’s refine it further.

Mutual Funds
You have a wide variety of mutual funds, including equity, ELSS, and international funds.

Active vs. Stopped SIPs
Active SIPs: Quant Active Fund, Axis Midcap Fund, Mirae Asset ELSS, SBI Small Cap, Nippon India US Equity Opp. Fund, DSP ELSS Tax Saver, Mirae Asset Large & Mid Cap, Nippon India Small Cap, Quant Mid Cap, Quant Small Cap, Quant Flexi Cap

Stopped SIPs: Axis Bluechip Fund, Nippon India ELSS Tax Saver, Aditya Birla SL ELSS Tax Saver

Recommendations for Mutual Funds
Consolidation: Reduce the number of funds. This simplifies management and avoids overlap.

Focus on Performance: Keep funds with consistent performance.

Direct vs. Regular Funds
Disadvantages of Direct Funds: Lack professional guidance. Regular funds offer better management through a Certified Financial Planner (CFP).
Additional Investment Suggestions
Debt Instruments
PPF and NPS: Continue contributions. They offer stability and tax benefits.
Stocks and Smallcases
Stock Investments: Keep investing quarterly. Diversify across sectors for balanced growth.
Fixed Deposits
Emergency Fund: Maintain Rs 30 lakhs in FDs. Ensure easy access for emergencies.
Insurance Needs
Health Insurance
Individual Health Insurance: Get a separate health insurance plan. Corporate plans may not be sufficient.
Term Insurance
Life Cover: Get a term insurance plan for adequate life cover. This secures your family’s future.
Loan Management
Home Loan
Prepayment: Consider prepaying the home loan with surplus funds. This reduces interest burden and tenure.
Child’s Education and Marriage Planning
Systematic Investments
SIPs for Education: Start SIPs dedicated to your future child's education. Aim for growth-oriented funds.

Marriage Fund: Similarly, allocate funds for marriage expenses.

Sukanya Samriddhi Yojana
For Girl Child: If you have a girl child, consider investing in Sukanya Samriddhi Yojana for her future.
Retirement Planning
Retirement Corpus
Target: Aim for a retirement corpus of Rs 10 crores by age 45-48.
Strategy
Increase SIPs Annually: Increase your SIPs by 15% every year. This leverages compounding effectively.

Balanced Portfolio: Maintain a balanced portfolio with equity, debt, and other instruments.

Professional Management
Certified Financial Planner: Work with a CFP for personalized advice. They help manage and optimize your investments.
Final Insights
You have a strong investment base. Simplify your mutual fund portfolio and focus on high-performing funds. Get adequate health and life insurance. Prepay your home loan to reduce the burden. Plan systematically for your child's education and marriage. Work with a Certified Financial Planner to achieve your retirement goal of Rs 10 crores.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9198 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

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 29, 2025

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I am 41 years old male working in a private firm and investing from 2017 in MFs and accumulated around 20 lakhs. My target is to achieve 3 crores in 15 years ( from 2025 ) . My portfolio is given below , Apart from MF investing NPS & PPF and some times in Direct equity. Question : 1) Is my fund selection ok , With this current Portfolio along with 10 % Stepup can i achieve my goal. 2) Is SBI blue chip & HSBC small cap funds ok or do I switch to other funds ? 3) Want to invest 5000 more, in which fund should I allocate ? 4) Shall I stop PPF and that money I divert to a mutual fund? 5) Some other funds are also there in my portfolio which I stopped SIP but did not withdraw the amount. What is the best strategy in this case? Mutual Funds S/no Fund name Amount (RS) /month 1 SBI Blue Chip fund 5000 2 Parag Parikh Flexi Cap fund 10000 3 Kotak Multicap Fund 5000 4 Motilal Oswal Mid Cap fund 10000 5 HDFC Mid Cap opportunities 5000 7 HSBC Small Cap fund 5000 8 Nippon India Small Cap fund 5000 Total 45000 S/no NPS Amount (RS) /month 1 Tier -1 7000 2 Tier -2 3000 PPF Amount (RS) / year 1 ICICI PPF 60000
Ans: Hello;

Please find pointwise reply to your queries:

1. You already have allocation to small and mid caps through Flexi cap and multicap funds. Despite that you may have additional allocation to One dedicated mid and small cap fund but not two!

The monthly sip's into second small cap and midcap fund may instead be moved to an aggressive hybrid type mutual fund and multi asset allocation type mutual fund.

You may achieve your target with the proposed step up(10%) planned even considering 10% modest returns from MF investments.

2. Funds are okay however you need to review risk-adjusted performance every year with reference to the benchmark and category average and then decide suitably.

3. You may invest additional 5 K in gold mutual fund.

4. Keep contributing to PPF. It's a social security scheme and goes towards sovereign debt in your overall asset allocation.

5. Review past MF holding in line with your overall asset allocation, portfolio overlap, risk adjusted performance and decide as appropriate.

You may select and avoid funds from suggested categories based on risk adjusted performance criteria.

This being a neutral forum we are prohibited to recommend xyz fund.

Happy Investing;

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9198 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 24, 2025

Asked by Anonymous - Jun 24, 2025Hindi
Money
Hi Sir, I am a 40 year old woman. I am a mother of 2 daughters. I have a montly income of 70,000. I have invested in parag parikh flexi cap :: 7k, aditya birla sunlife digital india fund::2k, quant small cap:: 1k. I also invest montly 1k into SSS and 1k into PPF. Household expenses take upto 10k per month and try saving monthly 5k as cash for emergency fund which i have just started and approx 4lakhs towards kids education. I want to invest in good gold ETF scheme. Kindly chk my investment portfolio and suggest changes on the existing fud and any better funds to go for. My family of 4 is currently dependent on my income.
Ans: You are doing a great job managing your responsibilities as a mother and sole earner. Taking care of your family, while also investing for the future, is truly admirable. Let us now assess your overall financial situation from a 360-degree perspective.

Income and Expense Review

Your monthly income is Rs. 70,000.

Household expenses are limited to Rs. 10,000. That is very good control.

You are saving Rs. 5,000 monthly in cash for emergencies. This is a positive start.

You have Rs. 4 lakhs earmarked for children’s education. Very thoughtful planning.

Total committed monthly investments are Rs. 12,000.

You have struck a fair balance between expenses and savings.

Let us evaluate your investments and suggest improvements.

Review of Current Mutual Fund Investments

You are investing in 3 mutual fund schemes:

A flexi-cap fund (Rs. 7,000)

A sectoral tech fund (Rs. 2,000)

A small-cap fund (Rs. 1,000)

Here is the assessment:

1. Flexi Cap Fund (Rs. 7,000)

This category gives fund manager freedom to invest across large, mid and small caps.

You have chosen a well-diversified fund type. This is suitable for medium to long term.

Continue with this fund. Keep monitoring annually for performance.

2. Sectoral Tech Fund (Rs. 2,000)

Sector funds are high-risk. They lack diversification.

They perform only in specific market cycles. Not suitable for long-term goals alone.

Suggest you stop SIP here gradually. Shift this amount to diversified equity fund.

3. Small Cap Fund (Rs. 1,000)

Small caps can give high returns but with high volatility.

It is good you have kept the exposure small.

Retain it if your risk appetite allows. Avoid increasing it further.

Retirement and Long-Term Security Planning

As the sole breadwinner, your financial safety is very important.
You are 40 now. Planning for retirement should be given high priority.

Suggestions:

Start a separate SIP for retirement purpose.

Choose a diversified multi-cap or large-cap biased fund.

Invest at least Rs. 3,000 monthly if possible.

This can grow into a strong retirement base over 15-20 years.

Do not depend on EPF or PPF alone.

Children’s Education Fund Planning

You have already saved Rs. 4 lakhs. That is a good start.
But children’s education needs can be higher in future.

Suggestions:

Continue SIP in a good diversified equity mutual fund.

Allocate Rs. 3,000 monthly just for this goal.

Stick to funds that focus on large and mid-cap segments.

Avoid thematic or sector funds for this purpose.

Review portfolio annually to switch if performance drops.

Emergency Fund Planning

You have just started building this. That is great.

Suggestions:

Target 6 to 12 months of expenses as emergency fund.

Since your expenses are Rs. 10,000, aim for Rs. 60,000 to Rs. 1.2 lakhs first.

Store in liquid mutual fund or bank RD or savings account.

Avoid using this fund unless true emergency arises.

Gold Investment Strategy

You asked about gold ETF investments.

Let’s understand the points first.

Disadvantages of Index Funds and ETFs:

ETFs and index funds are passively managed.

They just copy an index or a commodity. No fund manager decisions.

No flexibility to exit underperforming stocks.

These funds underperform in sideways or bear markets.

Gold ETFs have no income generation ability.

They carry expense ratios but no compounding benefits like equity funds.

Gold prices stay flat for years sometimes.

Better Alternative – Actively Managed Gold Mutual Funds:

Choose gold mutual funds with active management.

SIP route reduces gold volatility risk.

You can invest Rs. 1,000 monthly for asset allocation purpose.

Limit gold investment to 5-10% of total portfolio.

Use gold as a hedge, not wealth creation.

SSS and PPF Contribution Review

You are investing Rs. 1,000 monthly in each.

These are safe and government-backed. Good for capital protection.

But returns are lower than equity mutual funds.

Consider this portion more for safety than wealth growth.

Continue if you want low-risk component in your plan.

Do not increase these amounts unless tax benefit is needed.

Cash Flow and Budgeting Evaluation

Monthly investments: Rs. 12,000 (Mutual funds + PPF + SSS)

Monthly saving in cash: Rs. 5,000

Monthly fixed expense: Rs. 10,000

That leaves you with nearly Rs. 43,000 monthly for flexible use.
If possible, increase mutual fund SIPs by Rs. 2,000-3,000 every 6 months.
This will build long-term wealth faster.

Insurance and Risk Coverage (Assuming You Have None)

As you did not mention life or health insurance, this needs urgent attention.

Life Insurance:

You are the only earning member.

Buy a term plan of at least Rs. 50 lakhs to Rs. 1 crore.

This will protect your family if anything happens to you.

Only choose pure term insurance. No investment-linked policy.

Health Insurance:

Cover the entire family under one floater policy.

Go for Rs. 10 lakh coverage at minimum.

Avoid relying only on employer health cover (if any).

Accident Cover:

Low premium personal accident policy is also helpful.

Helps in case of temporary or permanent disability.

Tax Saving Suggestions

PPF and SSS qualify under 80C.

Life insurance premiums also help.

Equity Linked Savings Schemes (ELSS) offer better returns and tax benefits.

You can allocate Rs. 1,000 to Rs. 2,000 per month to ELSS.

Keep it locked for 3 years and review after that.

Discipline and Investment Strategy Tips

Stick to SIPs even when market is down.

Do not stop or switch funds too frequently.

Rebalance your portfolio once a year.

Increase SIPs gradually with income rise.

Keep asset mix – equity, debt, gold – in balance.

Always keep investment and insurance separate.

Avoid Direct Mutual Funds Route

Many people invest in direct mutual funds.
But this is risky without expert guidance.

Why Avoid Direct Funds:

You lose the support of a Certified Financial Planner.

No one tracks performance for you.

No help for rebalancing or goal tracking.

A regular plan through a Certified Financial Planner gives full service.

It helps you make decisions without emotional errors.

Finally

You are already doing better than many people with your planning.

Continue with your flexi-cap and small-cap funds.

Stop the sectoral tech fund and switch to a diversified equity fund.

Avoid gold ETFs. Choose an actively managed gold mutual fund instead.

Start a SIP for retirement and children's higher education.

Protect your family with term and health insurance urgently.

Slowly build your emergency fund to reach Rs. 1 lakh minimum.

Increase SIPs every year as your income rises.

Don’t mix insurance and investment.

Work with a Certified Financial Planner to review annually.

You are on the right path. Just a few small corrections will give you big results over time.

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

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Ramalingam

Ramalingam Kalirajan  |9198 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 24, 2025

Money
Hi, Need your help to review my SIP allocation: Im 36 y/o with take home post tax 2.8L per monthly. My SIP portfolio looks like this(monthly) Digital gold investment : 35k SBI contra fund growth - 10k HDFC flexi cap fund - 10k HDFC gold ETF -10k SBI bluechip direct plan - 10k Aditya Birla sunlife direct fund -10k Bandhana small cap - 10k Plus I have invested in shares and also have few office RSUs. My immediate plan is to go for home in next 2-3 years and post that save for kids education plus retirement.Please review and suggest few more investment plans. Thanks S
Ans: You are earning well and investing regularly. This is already a good beginning. Now, let’s deeply analyse your SIP allocation and overall investment structure from a 360-degree perspective. Let’s assess your portfolio, identify gaps, and offer suggestions in a simple, structured manner.

Monthly Income and Savings Capacity
Take-home income is Rs. 2.8 lakhs per month.

Your current monthly SIP is Rs. 85,000.

This is nearly 30% of your income, which is excellent.

You also hold RSUs and direct shares, which adds further value.

You are thinking long term – home, child’s education, and retirement. That’s very good.

Let’s evaluate each investment one by one now.

Digital Gold – Rs. 35,000/month
This is a high monthly investment in digital gold.

Gold should not exceed 10-15% of total long-term portfolio.

Digital gold doesn’t give regular income or compounding benefits.

It has storage safety, but no taxation benefit.

You are also investing in gold ETF. That doubles exposure.

Better to reduce digital gold to Rs. 5,000–7,000 per month.

Shift balance to diversified mutual funds with long-term potential.

HDFC Gold ETF – Rs. 10,000/month
Another gold-based investment. This overlaps with digital gold.

You are over-allocated to gold. This limits long-term growth.

Gold should be a hedge, not a primary asset.

Please stop this SIP.

Redirect this Rs. 10,000 into equity mutual funds.

SBI Contra Fund – Rs. 10,000/month
Contra funds follow contrarian investing style.

They take risky sectoral bets.

They are not suitable for core portfolio.

Volatility can be very high in short and medium term.

You can consider reducing this to Rs. 5,000.

Redirect balance to more stable fund types.

HDFC Flexi Cap Fund – Rs. 10,000/month
Flexi-cap category offers diversification across market caps.

They allow fund manager flexibility.

This is a good choice for core allocation.

You can continue this SIP.

Increase gradually if gold allocation is reduced.

SBI Bluechip Direct Plan – Rs. 10,000/month
Important Concern:

You have invested in direct plan of this fund.

Direct plans offer lower expense ratio.

But they offer no service, review, or guidance.

There is no certified financial planner in between.

You are missing goal-based planning and rebalancing.

This can hurt your portfolio in long run.

Why Regular Plan via MFD with CFP is better:

Regular plan connects you to a CFP-certified MFD.

They help design goal-specific investment strategy.

They assist in tax planning and review periodically.

You will also get behavioural coaching during market falls.

With a direct plan, these services are absent.

Action Point:

Switch to regular plan of the same scheme via a certified MFD.

They will support with planning, not just execution.

Aditya Birla Sun Life Direct Fund – Rs. 10,000/month
Concern again:

Another direct plan investment.

Disadvantages are same as mentioned above.

No access to guided review, advisory, and rebalancing.

Regular plans are more useful when backed by a CFP-certified MFD.

Suggestion:

Stop SIP in direct plan.

Restart in regular plan through a qualified MFD.

You will benefit more in long-term wealth creation.

Bandhan Small Cap Fund – Rs. 10,000/month
Small cap funds can be volatile in short term.

But they deliver well in long term.

However, allocation should be limited to 10–15%.

Maintain current SIP amount.

Don’t increase beyond this unless risk tolerance is high.

Investment in Shares and RSUs
Individual stocks are risky if not actively monitored.

RSUs are good, but depend on employer performance.

Diversification becomes weak if you rely too much on company shares.

Regular profit booking and shifting to mutual funds is wiser.

Goals: House in 2–3 Years
This is a short-term goal.

Equity mutual funds are not suitable for this time frame.

Avoid investing further for this goal in equity or gold.

Start a separate SIP in ultra-short duration debt fund or RD.

Keep your down payment in 100% safe, low-volatility product.

Goals: Children’s Education
This is a long-term goal, assuming child is under 10.

Best suited for diversified equity mutual funds.

You can also consider child-specific mutual fund plans.

Avoid ULIP or insurance-linked products.

SIP through a CFP-guided MFD is most suitable.

Retirement Planning
At 36, you have 20–25 years to build retirement corpus.

Retirement corpus needs growth, safety, and inflation beating returns.

Equity mutual funds through regular SIPs are ideal.

Consider flexi-cap, large & mid-cap, and balanced advantage funds.

NPS can also be added for extra tax-saving and retirement focus.

Don't rely on employer RSUs alone for retirement.

Problems with Index Funds
You haven’t mentioned index funds. But if you ever consider them:

Index funds have no active management.

They can’t protect during market crashes.

They invest in poor-quality stocks just because they are in the index.

They cannot exit risky sectors in a falling market.

You get average returns, not outperformance.

Active Funds are Better Because:

They are managed by experienced fund managers.

They adapt to changing economic and market conditions.

They avoid poor-performing stocks.

They give opportunity to beat index returns.

A certified financial planner will always use active funds for long-term wealth.

Summary of Actions to Take
Reduce digital gold SIP from Rs. 35,000 to Rs. 5,000–7,000.

Stop gold ETF SIP of Rs. 10,000 fully.

Cut contra fund SIP to Rs. 5,000.

Exit direct plans and move to regular plans with help of a certified MFD.

Allocate more to flexi-cap, large & mid-cap, and hybrid equity funds.

Keep short-term goals like house purchase in debt instruments.

Track stock exposure and reduce reliance on RSUs.

Continue small cap SIP but don’t over-allocate.

Create separate SIPs for child’s education and retirement.

Final Insights
Your income level gives you strong investment potential.

You are already saving a good percentage monthly. Very good discipline.

But allocation needs reshaping to remove concentration in gold.

Direct plans offer no advisory help. That creates blind spots.

Actively managed mutual funds via certified MFDs give goal-based structure.

For short-term needs like a home, equity is not suitable.

For long-term goals like retirement and education, equity mutual funds are best.

A certified financial planner can create personalised roadmaps for each goal.

This kind of structured, reviewed investment can ensure you reach your goals without stress.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9198 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 24, 2025

Asked by Anonymous - Jun 23, 2025Hindi
Money
I am 38 years old,I have a baby boy 9 months old ,where can I invest for his future,also I have to plan for a home,My annual income is around 15 lakhs.No loans or Emi s
Ans: You are 38, with a 9-month-old baby boy. Your annual income is Rs. 15 lakhs. You have no loans or EMIs. You want to plan for your child’s future and buy a home.

This is a very good stage to start. You have good cash flow and zero debt. With structured planning, you can create wealth for your family. Let's look at your goals in a detailed and simple way.

Understand Your Financial Priorities First
Your child’s future.

Buying a home.

Creating an emergency reserve.

Saving for your retirement.

You need to balance these well. Investing without clarity may create confusion later.

Begin With a Strong Emergency Fund
Keep at least 6 to 12 months’ expenses in a liquid fund.

This includes rent, food, medical, school, and monthly needs.

Park this money in a low-risk mutual fund, not in a savings account.

Don’t invest this fund in equity mutual funds or ULIPs.

Emergency fund gives peace of mind during job loss or health issues.

Take Health Insurance Before Investing
Cover yourself, your spouse, and your baby.

Go for a family floater policy with at least Rs. 10 lakh sum insured.

Pick a reputed insurer with fast claim settlement.

Don’t rely only on employer-provided cover. Personal policy is a must.

Secure Your Family With Term Insurance
A term insurance of Rs. 1 crore or more is needed.

Premium is low if you buy early.

Buy till your child turns 25 or you reach 60.

This will protect your child’s future in your absence.

Create a Dedicated Child Education Fund
You have around 17 years to plan. Start now to gain from compounding.

Ideal Investment Approach:
Start SIP in diversified equity mutual funds.

Choose funds with long-term performance across market cycles.

Review every 12 months with a Certified Financial Planner.

Don’t invest in ULIPs or traditional LIC policies.

If you already have them, it is better to surrender and reinvest in mutual funds.

Why Mutual Funds Are Better for Child’s Education
Mutual funds offer higher growth than fixed deposits or LIC.

Equity funds beat inflation in the long term.

You get flexibility, transparency, and liquidity.

Avoid child insurance plans. They give poor returns and low coverage.

Why You Should Avoid Index Funds for Child Goals
Index funds are passive. They copy the market. No fund manager is involved.

Problems with index funds:

Cannot manage risk actively.

Underperform in falling markets.

No protection against poor-performing sectors.

Instead, go with actively managed equity funds. A good fund manager can avoid weak sectors and ride strong trends.

This is very helpful in long-term goals like child education.

Why Direct Funds May Not Suit You
Direct funds have lower expense ratio. But they come with responsibility.

Disadvantages of Direct Funds:

No guidance from an expert.

You have to do all research and portfolio rebalancing.

You may exit too early or stay too long due to lack of advice.

Instead, invest through a Certified Financial Planner via a regular plan. He will:

Monitor your goals.

Switch your funds when needed.

Keep your emotions in check during market ups and downs.

The small cost of regular plan gives huge value in goal achievement.

Home Purchase Planning – Do This Smartly
First, decide how much house you want to buy.

Set a timeline for buying (3 years, 5 years, etc).

If buying within 3 years, use low-risk debt mutual funds.

Don’t invest this amount in equity mutual funds or stocks.

For a longer horizon (5+ years), use aggressive hybrid mutual funds:

65–80% equity + 20–35% debt.

Less risky than pure equity but better than FD.

As you get closer to your home buying date, slowly move funds to debt mutual funds.

Avoid Real Estate as Investment
Buy a house for use, not for investment.

Real estate has problems:

Low liquidity.

High maintenance costs.

Poor transparency.

Long holding period.

For wealth building, mutual funds are better.

Set Up a SIP-Based Monthly Investment Plan
Assume you can invest Rs. 50,000 per month from your income.

You can split this way:

Rs. 25,000 in equity mutual funds for child education.

Rs. 15,000 in hybrid mutual funds for future home.

Rs. 10,000 in debt mutual funds for short-term goals.

If you start early and stay disciplined, you can reach all goals easily.

Keep Reviewing With a Certified Financial Planner
Financial plans are not fixed. Life situations change.

Review your goals every 12 months.

Increase SIP amount with income rise.

Track your funds’ performance regularly.

Rebalance when required.

Only a Certified Financial Planner can do this professionally and without bias.

Taxation Rules You Should Know (For Awareness)
Equity mutual funds: If gains are above Rs. 1.25 lakh in a year, 12.5% tax.

Gains below that – no tax.

Debt mutual funds: Taxed as per your income slab.

So, for child and home goals, keep these tax rules in mind while selling.

Avoid Annuities or Insurance-Cum-Investment Plans
They give low returns (less than 5–6%).

Your money gets locked for many years.

Inflation eats away the value.

Only term insurance + mutual funds work best.

Some Smart Tips to Stay Financially Strong
Don’t mix insurance with investment.

Don’t chase returns. Focus on goals.

Don’t panic in a market crash.

Don’t borrow for luxury.

Don’t take advice from unqualified agents.

Always take help from a Certified Financial Planner for better results.

Finally
You are already doing many things right. You have no debt. You are clear on goals.

Protect your family first with term and health cover.

Build an emergency fund now.

Invest monthly through SIPs in the right mutual funds.

Keep your child’s future as a separate goal.

Don’t delay home planning. Link it to a 3–5 year goal.

Get expert help from a certified person.

Follow this structured path for 2 decades. You will create wealth, peace, and freedom.

Stay disciplined. Keep reviewing. Avoid shortcuts.

You will be financially free. And your child will thank you one day.

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

...Read more

Nayagam P

Nayagam P P  |6988 Answers  |Ask -

Career Counsellor - Answered on Jun 24, 2025

Asked by Anonymous - Jun 24, 2025Hindi
Career
Sir My son has got admission in NMIMS for MBA Tech program with CSE (dual degree course) and KJ Somaiya B Tech CSE. Fee structure is more or less similar. Which one will be better. Please advise
Ans: NMIMS Mumbai’s MBA Tech (CSE) dual degree program offers a five-year integrated curriculum blending engineering and management, with the 2024 placement report showing an average package of ?10.7 lakh, median of ?10.2 lakh, and 122 recruiters including BFSI, IT, consulting, and core engineering firms; placement rate is 78% with strong industry exposure and a robust alumni network. KJ Somaiya BTech CSE is a four-year program with an average package of ?9.45–11.35 lakh, highest package of ?58 lakh, and a placement rate above 90% in 2024; over 110 companies including Google, Microsoft, JP Morgan, and Infosys recruited, and the CSE branch saw 124 offers with a modern, project-based curriculum and strong internship support. Both institutions have similar fee structures and are well-ranked, but NMIMS’s MBA Tech provides an early management edge, while KJ Somaiya’s BTech CSE offers a focused technical pathway with higher placement consistency, a strong tech peer group, and a flexible curriculum that supports entrepreneurship and higher studies. NMIMS’s dual degree is advantageous for those seeking tech-management roles, while KJ Somaiya is ideal for those targeting pure tech careers or top IT companies.

The recommendation is to choose KJ Somaiya BTech CSE for its higher placement rate, stronger technical focus, and flexibility for core tech roles or higher studies; NMIMS MBA Tech is preferable if your son is keen on a combined tech-management career from the start. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |6988 Answers  |Ask -

Career Counsellor - Answered on Jun 24, 2025

Asked by Anonymous - Jun 24, 2025Hindi
Career
Can someone provide NEST exam approximate Marks vs rank data of 2024 or expected marks vs rank data of 2025?
Ans: In NEST 2024, candidates’ total scores (sum of best three sections out of four, maximum 180) corresponded to specific all-India ranks, with the general category’s opening marks around 145–150 fetching ranks 1–30 and closing ranks near 1800 requiring about 80–85 marks. For NISER Bhubaneswar, the Round 1 closing rank was 1852 with roughly 82 marks, while CEBS Mumbai’s closing general-category rank of ~460 corresponded to about 70 marks. Category-wise, general candidates scoring 120–150 could expect ranks under 500, OBC candidates with 100–130 marks around ranks 600–1200, and SC/ST candidates with 80–110 marks near ranks 1500–2500. Section-wise cut-offs (SMAS) in 2024 ranged between 5–9 marks per subject for general and 3–7 for OBC. With NEST 2025’s exam difficulty likely similar, total qualifying marks (MAP) remain at 95th percentile for general and 90th for OBC; thus, a safe target is 130–140 marks for a top-500 rank and 90–100 marks for a sub-2000 rank among general candidates. OBC aspirants should aim for 110–120 marks to secure ranks under 1500. SC/ST candidates need 75–90 marks for ranks within 2500, and Jammu & Kashmir residents may enter NISER with as low as 30–40 marks owing to supernumerary seats. Rising registrations might edge cut-offs upward if paper difficulty eases; conversely, increased difficulty could lower required marks by 5–10 points.

The recommendation is to plan for at least 140 marks (general), 120 marks (OBC), and 90 marks (SC/ST) in NEST 2025 to secure desirable ranks for NISER and CEBS admissions, adjusting target scores according to mock-test difficulty and section-wise strengths. All the BEST for Your Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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