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Abhishek Dev  | Answer  |Ask -

Financial Planner - Answered on Sep 14, 2023

Abhishek Dev is the co-founder and CEO of the financial planning company, Epsilon Money Mart.
A management graduate, he has over 21 years of experience in asset and wealth management.
He has been associated with reputed companies like HSBC GAM (India, south east Asia), PGIM, AMC, AMEX Bank, HDFC AMC and UTI in various roles, including leading business management, sales, marketing, product development and as a board member.... more
RUBY Question by RUBY on Jun 23, 2023Hindi
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I have approx 3 lakhs for 3-4 years. what should I do to make it grow?

Ans: We don't know your risk appetite, but you can consider investing in Equity Largecaps. Assuming ~12% return, your corpus can grow to ~Rs. 6.3 lacs. Investing in multi-asset funds also can be a good option since time horizon is little less to go all into equities.
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  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

Asked by Anonymous - Jul 05, 2024Hindi
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I can invest 30 lakhs now , but i need 3 crores after 3 years , pls suggest any plans
Ans: You aim to invest Rs. 30 lakhs now and need Rs. 3 crores in just three years. This goal requires a 900% return on investment in a short period, which is highly unrealistic.

Investment Realities
1. Unrealistic Target
High Returns: Achieving a 900% return in three years is nearly impossible with legitimate investments.
Market Volatility: High returns come with high risks, including the potential loss of principal.
2. Risks of Get-Rich-Quick Schemes
Scams: Many schemes promising quick wealth are scams.
Principal Loss: You risk losing not only potential gains but also your initial investment.
3. No Shortcuts to Wealth
Patience: Wealth creation takes time and patience.
Consistent Investing: Regular and disciplined investing yields better results over the long term.
Recommended Approach
1. Long-Term Investment Strategy
Equity Mutual Funds: Invest in well-performing equity mutual funds for long-term growth.
Systematic Investment Plan (SIP): Consider SIPs to benefit from market fluctuations.
2. Diversified Portfolio
Balanced Portfolio: A mix of equity, debt, and other assets for balanced risk and return.
Regular Review: Monitor and adjust your portfolio annually.
3. Financial Planning
Professional Advice: Consult a Certified Financial Planner for personalized advice.
Goal Setting: Set realistic financial goals and develop a plan to achieve them.
Analytical Insights
Investment Risks
High Risk: High-return investments come with high risks.
Market Unpredictability: Market conditions are unpredictable, especially in the short term.
Wealth Creation
Time Factor: Wealth creation is a long-term process.
Regular Investments: Consistent investments in diverse assets yield better results.
Key Considerations
Risk Tolerance: Assess your risk tolerance before making investment decisions.
Financial Goals: Align your investments with realistic financial goals.
Regular Review: Periodically review and adjust your investment strategy.
Final Insights
Investing Rs. 30 lakhs with the expectation of getting Rs. 3 crores in three years is unrealistic. High-return promises are often scams, and you risk losing your principal. Focus on a long-term investment strategy with a diversified portfolio and regular reviews. Patience and consistent investing are key to wealth creation. Seek professional advice for personalized financial planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam Kalirajan  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 14, 2024

Asked by Anonymous - Jul 23, 2024Hindi
Money
I am 50 year old I have 1core in fixed deposit I have 75 lakh in post office scheme 34 lakh in ppf an 92 lakh in insurance which are paid I have agricultural land 45 acer an a 2 shop 2 house my annual income is 35 lakh from agricultural and from my money what's should i do to grow fast from my resources
Ans: You have a solid financial foundation. Your assets are diversified across fixed deposits, post office schemes, PPF, insurance, and land. This variety reduces risk and ensures steady growth. Your income from agriculture and other sources adds to your stability. You have a great starting point to achieve even greater financial growth.

Focus on Maximizing Returns
Your current investments are secure but might not offer high growth. Fixed deposits and post office schemes are low-risk, but their returns may not keep pace with inflation. It's essential to look into options that provide better growth, while still balancing safety.

Reassessing Insurance Policies
The Rs 92 lakh in insurance is a significant amount. If these policies are investment-linked, they might not offer the best returns. Consider surrendering any ULIP or endowment policies. Instead, invest the proceeds into mutual funds through a Certified Financial Planner. This move could potentially increase your returns over time. Remember, insurance should be for protection, not investment.

Leveraging Agricultural Income
Your 45 acres of agricultural land is a great asset. You can use the income to reinvest in higher-yield opportunities. Consider diversifying into horticulture, organic farming, or even agritourism. These areas can offer higher returns compared to traditional farming. With proper planning, you can significantly increase your income from this land.

Boosting Your Investment in Mutual Funds
Mutual funds offer a balanced mix of growth and stability. Given your risk appetite, a mix of equity and debt funds could suit your profile. Equity funds can offer high growth, while debt funds provide security. Consulting a Certified Financial Planner will help you pick the right funds tailored to your goals.

Exploring Gold Investments
Gold has always been a hedge against inflation. You can invest a portion of your assets in Sovereign Gold Bonds (SGBs) or Gold ETFs. These offer better returns compared to physical gold. Gold can add a layer of security to your portfolio.

Enhancing Returns from Fixed Deposits and PPF
Your Rs 1 crore in fixed deposits and Rs 34 lakh in PPF are safe investments. However, the returns are limited. Consider moving a portion of these funds into hybrid funds or balanced funds. These funds offer better returns while maintaining a degree of safety.

Creating a Diversified Portfolio
To achieve faster growth, a diversified portfolio is crucial. Here's a suggested allocation:

Equity Mutual Funds: Allocate a significant portion to equity funds for high growth.

Debt Funds: Invest in debt funds for stability and to balance the risk.

Gold: Include gold for inflation protection.

Agriculture: Reinvest in your agricultural business for higher returns.

This mix ensures a balance of growth, stability, and security.

Tax Efficiency and Planning
It's important to consider tax efficiency in your investment strategy. Mutual funds, especially equity-oriented ones, offer tax benefits. The returns from these funds are often more tax-efficient than fixed deposits or post office schemes.

Additionally, your agricultural income is tax-free. You can use this to your advantage by reinvesting in tax-efficient instruments. Ensure your investments are aligned with your tax planning to maximize your net returns.

Estate Planning and Succession
Given the value of your assets, estate planning is crucial. This will ensure a smooth transfer of wealth to your heirs. Consider setting up a trust or writing a will. This will help in avoiding legal complications and ensure your assets are distributed according to your wishes.

Retirement Planning
You should also think about retirement, even though you have substantial assets. With proper planning, you can ensure a comfortable retirement with a steady income stream. You may want to look into annuity options, although not as an investment, but as a steady income source post-retirement. However, focus on building a retirement corpus through mutual funds and other growth-oriented instruments.

Managing Liquidity
While growing your wealth is important, maintaining liquidity is equally crucial. You should always have a portion of your investments in liquid assets. This ensures you can handle any emergencies without disturbing your long-term investments. Keep some money in liquid mutual funds or short-term fixed deposits. These instruments offer quick access to funds without compromising much on returns.

Regular Review and Monitoring
The financial landscape is constantly changing. Regularly reviewing your portfolio with a Certified Financial Planner is important. They can guide you through adjustments needed to keep your portfolio aligned with your goals. This ongoing review will help in optimizing returns and minimizing risks.

Finally
Your current financial position is strong, and with careful planning, you can achieve even greater growth. Focusing on mutual funds, optimizing your insurance, and leveraging your agricultural income can significantly enhance your wealth. Stay committed to your goals, and consult a Certified Financial Planner to ensure you're on the right track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ramalingam Kalirajan  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 30, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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Money
Hi I am 30 yo and working in public sector bank, have 3 lakh in MUTUAL FUND, 3 LAKH IN PPF, 2 LAKH IN FD. MONTHLY INCOME (NET) 80K EXPENSES 40K (INCLUSIVE LOAN REPAYMENT AND SIP) I want to grow my money Pls guide and suggest
Ans: Financial Health Assessment
You are saving 50% of your income. This is excellent.

You have a good mix of mutual funds, PPF, and FD.

Your expenses, including loan repayment and SIPs, are well managed.

You have no mention of insurance. Protection is as important as growth.

Strengthening Your Financial Foundation
Emergency Fund
You need at least 6 months of expenses in a liquid asset.

Your FD can act as an emergency fund. Keep Rs 2 lakh in FD.

Future excess cash should go to a liquid mutual fund for better returns.

Health and Life Insurance
Buy term insurance equal to 10-15 times your annual income.

Choose a separate health insurance policy apart from your employer cover.

If married or planning a family, include spouse and children.

Maximising Your Investments
Mutual Funds
Increase SIPs as your income grows.

Choose actively managed equity mutual funds. They can beat inflation and build wealth.

Invest via an MFD with CFP credentials for guidance.

PPF Strategy
PPF is good for safety but has a 15-year lock-in.

Continue investing but do not put all your surplus here.

Focus more on equity mutual funds for wealth creation.

Fixed Deposit Strategy
FDs give low returns. Keep only for emergency purposes.

Avoid investing surplus in FDs.

Optimising Your Loan Repayment
You mentioned loan repayment but not the outstanding loan amount.

If interest is high (above 9%), prioritise early repayment.

If interest is low (below 7%), continue EMIs and invest excess in mutual funds.

Increasing Wealth Over the Next 10 Years
Investment Priorities
Increase SIPs every year by at least 10%.

Invest lump sum amounts when you receive bonuses.

Avoid frequent withdrawals from investments.

Tax Efficiency
Use Section 80C (Rs 1.5 lakh limit) with PPF, ELSS, and EPF.

Check if you can save more tax under Section 80D for medical insurance.

Wealth Creation Strategy
Follow asset allocation: 70% equity, 20% debt, 10% liquid.

Review your investments yearly.

Avoid unnecessary insurance policies with investment components.

Final Insights
Your financial habits are strong. Stay consistent.

Increase equity exposure for higher long-term returns.

Keep reviewing and adjusting your strategy yearly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 08, 2025

Asked by Anonymous - Feb 08, 2025Hindi
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Ramalingam Kalirajan  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 08, 2025

Asked by Anonymous - Feb 08, 2025Hindi
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Dear Sir, At present, I have Rs. 75,00,000/- in SB account. Can I earn Rs. 60,000/- per month through SWP, if I invest this amount in mutual funds.
Ans: You want to generate Rs. 60,000 per month from Rs. 75 lakh. This means you need Rs. 7.2 lakh per year.

The biggest challenge is ensuring the corpus lasts long. If the withdrawals exceed the growth rate, the money will deplete faster.

A well-planned Systematic Withdrawal Plan (SWP) must balance growth, risk, and longevity.

Key Factors to Consider Before Investing

Inflation Impact

Expenses will rise over time.
A higher withdrawal rate today can lead to shortfall later.
Your plan should account for increasing withdrawals in the future.
Investment Risk

Mutual funds carry market risk.
Equity funds may give higher returns but fluctuate.
Debt funds are stable but may not beat inflation.
A mix of both is better.
Tax Efficiency

SWP from equity funds after one year has lower tax impact.
LTCG above Rs. 1.25 lakh is taxed at 12.5%.
Debt fund SWP is taxed as per your income slab.
Tax-efficient withdrawals increase corpus sustainability.
Longevity of Corpus

If your investments grow at 10% and you withdraw at 9%, funds may last long.
If growth is 8% but withdrawals are 12%, corpus may deplete soon.
A sustainable withdrawal rate is key.
Can Rs. 75 Lakh Sustain Rs. 60,000 Monthly?

If Growth is Low (6-8%)

The corpus may last for 12-15 years.
This may not be enough for long-term needs.
If Growth is Moderate (10-12%)

The corpus may last over 20 years.
A balanced approach is needed.
If Growth is High (Above 12%)

Higher returns can extend corpus life.
But market fluctuations will impact withdrawals.
Better Approach to Ensure Sustainability

Start with a Lower SWP Initially

Instead of Rs. 60,000, start with Rs. 45,000-50,000.
This gives the corpus time to grow.
Rebalance Annually

Review fund performance.
Adjust withdrawals based on market conditions.
Mix of Equity and Debt

Keep 60% in equity for growth.
Keep 40% in debt for stability.
Keep a Buffer in Liquid Funds

Maintain 6-12 months of expenses in liquid funds.
This helps avoid withdrawing in a market downturn.
Tax-Efficient Withdrawals

Use long-term capital gains benefits.
Avoid unnecessary tax outflow.
Alternative Strategies for Income Stability

Dividend Option in Mutual Funds

Some funds provide regular dividends.
But dividends depend on market performance.
Part-time or Passive Income Sources

Rental income, freelancing, or part-time work can reduce withdrawal pressure.
This helps corpus last longer.
Final Insights

Withdrawing Rs. 60,000 per month is possible but may reduce corpus life.
A balanced strategy is needed to ensure long-term sustainability.
Reducing withdrawal amount initially will help.
Regular reviews and rebalancing are important.
A mix of equity and debt ensures growth and stability.
Keeping a liquidity buffer helps during market corrections.
With the right approach, you can generate monthly income while protecting your capital.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7915 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 08, 2025

Asked by Anonymous - Feb 06, 2025Hindi
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Money
I want to retire this year. I am 41. My current corpus 1.2 crore MF, 30 lakh in PF. We live with parents in our own house in Bangalore valued at Rs 1.5 crore. I have a home loan EMI of 35000 that will end in 2032. Monthly expenses 35-40k. Mu wife takes home tuitions and earns Rs 25,000 per month.
Ans: Retiring at 41 is a bold decision. You have built a decent corpus. But early retirement requires careful planning. Let’s analyse your financial situation and create a sustainable plan.

Current Financial Position
Mutual Funds: Rs 1.2 crore
Provident Fund: Rs 30 lakh
Total Corpus: Rs 1.5 crore
Home Loan EMI: Rs 35,000 per month (ending in 2032)
Monthly Expenses: Rs 35,000 to Rs 40,000
Wife’s Income: Rs 25,000 per month
House Value: Rs 1.5 crore (not considered for expenses)
You have a strong foundation. But your corpus must last for decades. Let’s optimise your investments for steady income and growth.

Key Challenges in Early Retirement
Long Retirement Period: You need funds for 40+ years.
Inflation Risk: Expenses will rise every year.
Home Loan: EMI will continue for 8 more years.
Market Volatility: Equity investments will fluctuate.
Medical Expenses: Health costs will increase with age.
A structured approach will help you retire securely.

Managing Monthly Expenses
Your expenses: Rs 35,000 to Rs 40,000 per month.
Wife’s tuition income: Rs 25,000 per month.
Shortfall: Rs 10,000 to Rs 15,000 per month.
Your investments must cover this shortfall and future expenses.

Investment Strategy for Sustainable Income
Your portfolio must balance growth and stability.

Equity Mutual Funds (40-50%)

These will provide long-term growth.
Withdraw only when needed.
Keep a mix of large-cap, flexi-cap, and mid-cap funds.
Debt Mutual Funds (30-40%)

These will provide stability and regular income.
Choose short-duration or corporate bond funds.
Withdraw from this segment first before selling equity.
Fixed Deposits & Bonds (10-20%)

Invest in FDs or government bonds for emergencies.
Avoid locking all funds in long-term deposits.
Emergency Fund (Rs 5-7 lakh)

Keep 12-18 months of expenses in a liquid fund.
This ensures you don’t sell investments during market crashes.
This strategy ensures growth, liquidity, and stability.

Handling Your Home Loan
EMI is Rs 35,000 per month till 2032.
Wife’s income covers most of it.
Instead of full prepayment, make partial prepayments.
Use surplus funds or bonuses to reduce interest.
This will free up cash flow for future needs.
Avoid using all your corpus to close the loan. Investments will generate higher returns.

Medical Insurance & Health Planning
Buy a family floater health insurance of Rs 15-20 lakh.
Ensure it includes critical illness coverage.
Consider a super top-up plan for added coverage.
Keep Rs 5 lakh in a separate medical emergency fund.
Medical costs can drain savings. A strong health cover is essential.

Tax Planning for Retired Life
Mutual fund withdrawals attract capital gains tax.
Equity LTCG above Rs 1.25 lakh is taxed at 12.5%.
Debt mutual fund withdrawals are taxed as per your income slab.
Use systematic withdrawals to manage tax efficiently.
Utilise tax-free PPF withdrawals after maturity.
A tax-efficient withdrawal strategy will help maximise savings.

Income Generation During Retirement
Systematic Withdrawal Plan (SWP) from Mutual Funds

Set up SWP from debt mutual funds for regular income.
Withdraw from equity only when markets are high.
Part-Time Work Opportunities

Your wife earns Rs 25,000 from tuition.
Consider online consulting or freelance projects.
Even Rs 10,000 extra per month can reduce portfolio withdrawals.
A small active income will make your corpus last longer.

Inflation-Proofing Your Future
Expenses will double in 15-18 years.
Keep 40-50% of your portfolio in equity for long-term growth.
Review your portfolio every year and rebalance.
Adjust withdrawals based on market conditions.
Long-term sustainability is key for early retirees.

Final Insights
Your corpus is decent, but early retirement needs discipline.
Don’t use all savings to close the home loan.
Invest in a balanced mix of equity, debt, and fixed-income assets.
Plan systematic withdrawals to manage cash flow and taxes.
Health insurance and emergency funds are essential.
Keep some part-time income to reduce financial pressure.
Revisit your financial plan every year.
A well-structured plan will help you retire peacefully at 41.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Pushpa

Pushpa R  |50 Answers  |Ask -

Yoga, Mindfulness Expert - Answered on Feb 07, 2025

Asked by Anonymous - Feb 06, 2025Hindi
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Hello Yog Guru, I am (self) practising BASIC yoga since 2021. Every time I do the asanas I develop acute acidity and the same troubles me for 1-2 months. Remedial measures :- I follow medications, stop yoga and the issue is resolved. Should I give up yoga or is there any specific asanas that will not create acidity issues? Pls advise Thanks Tushar
Ans: It’s great that you have been practicing yoga since 2021. However, if yoga is triggering acidity, it means that some postures or your practice routine may not be suitable for your body.

Why is Yoga Causing Acidity?
Practicing on an empty or full stomach – Yoga is best done 2-3 hours after a meal.
Wrong postures – Some asanas (like deep backbends) can put pressure on the stomach, increasing acidity.
Holding breath – Improper breathing can disturb digestion.
Intense practice – Overstretching may trigger stress, which worsens acidity.
What to Do?
? Gentle Asanas: Vajrasana (after meals), Supta Baddha Konasana, and Marjaryasana-Bitilasana (Cat-Cow) help digestion.
? Avoid: Deep backbends and intense forward bends immediately after meals.
? Focus on Breathwork: Practice Nadi Shodhana (Alternate Nostril Breathing) and Sheetali Pranayama to cool the body and reduce acidity.
? Stay Hydrated: Drink warm water to support digestion.

Guidance Matters!
Practicing alone may cause incorrect posture or breathing habits. A yoga coach can guide you on asanas that suit your body and help avoid discomfort. Don’t give up yoga—just modify your practice with expert guidance!

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

...Read more

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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