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Advait

Advait Arora  | Answer  |Ask -

Financial Planner - Answered on May 24, 2023

Advait Arora has over 20 years of experience in direct investing in stock markets in India and overseas.
He holds a masters in IT management from the University Of Wollongong, Australia, and an MBA in marketing from Charles Strut University, NewCastle, Australia.
Advait is a firm believer in the power of compounding to help his clients grow their wealth.... more
R Question by R on May 24, 2023Hindi
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Is it Good to buy Vedanta Ltd at Rs 292 for long term?

Ans: Sell Vedant and move to better stocks.

please note : Investing strategies depends on your risk appetitive, so Please consult your financial advisor and then take further decision.
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  |7619 Answers  |Ask -

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

Asked by Anonymous - Jan 17, 2025Hindi
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I have joined sbi smart retire plus fund. Paying 6 lakh for 5 years. What should i be doing with the matured amount. I will be 60 years when it gets matured. What do you meanby annuity?
Ans: You are investing Rs. 6 lakh annually for 5 years into the SBI Smart Retire Plus Fund. Upon maturity, you will be 60 years old and may need this corpus to create a stable income during retirement. Let's explore the right approach for managing the maturity proceeds effectively.

Understanding the Investment Objective
Purpose of the Fund

SBI Smart Retire Plus aims to provide a retirement corpus.
You can use this to generate regular income after retirement.
Maturity Corpus

Your total contribution will be Rs. 30 lakh.
Depending on returns, your corpus may grow significantly over time.
Retirement Stage

At age 60, preserving and utilising this amount efficiently is essential.
Post-Maturity Strategy
1. Assess Your Retirement Needs
Monthly Income Requirement

Calculate the income you need post-retirement.
Include living expenses, healthcare costs, and leisure activities.
Existing Retirement Corpus

Consider other savings or investments you may already have.
Evaluate if the matured amount alone can meet your needs.
Emergency Fund Setup

Set aside 6-12 months of expenses in a liquid fund.
This ensures you are financially prepared for unforeseen expenses.
2. Avoid Investing in Annuities
Understanding Annuity Plans

An annuity converts your corpus into a guaranteed income.
Once invested, you lose control over the capital.
Disadvantages of Annuities

Returns are usually low, often below inflation rates.
They lack flexibility and tax efficiency.
Better Alternatives

Consider other options like mutual funds or systematic withdrawal plans.
These provide higher returns and greater control over your funds.
3. Diversify Across Investment Options
A. Equity-Oriented Mutual Funds
Higher Growth Potential

Allocate 40-50% of the corpus to equity mutual funds.
These can generate inflation-adjusted growth over time.
Balanced Portfolio

Include a mix of large-cap, mid-cap, and hybrid funds.
This diversification reduces risk while ensuring growth.
B. Debt Mutual Funds
Stable Returns

Invest 30-40% of the corpus in high-quality debt funds.
These provide regular income with lower market risk.
Tax Efficiency

Gains from debt funds are taxed as per your income slab.
Withdraw amounts based on your tax planning needs.
C. Hybrid Funds
Combination of Equity and Debt
Allocate 10-20% to hybrid funds for a balanced approach.
They ensure stability without compromising growth.
4. Generate Passive Income
Systematic Withdrawal Plan (SWP)

Use SWP from mutual funds to withdraw a fixed monthly income.
This keeps the remaining corpus invested and growing.
Flexible Withdrawals

You can adjust the withdrawal amount based on your needs.
This provides better control compared to fixed annuities.
Tax Benefits

Withdrawals are taxed only on the gains, not the principal.
This reduces your overall tax liability.
Aligning with Retirement Goals
Importance of Financial Planning
Regular Monitoring

Track your investments regularly to ensure they meet your goals.
Rebalance your portfolio as needed to maintain the right allocation.
Minimising Risk

Shift more funds to debt options as you age to protect your corpus.
Avoid overexposure to equity in later years.
Avoid Common Pitfalls
Don’t Pause Investments

If you have other investments, keep contributing even after retirement.
This ensures continued growth and better financial security.
Avoid Direct Funds

Direct funds lack professional guidance, which is crucial at this stage.
Invest through a Certified Financial Planner for better advice and fund selection.
Inflation Awareness

Plan withdrawals keeping inflation in mind.
Your expenses may rise over time, so ensure your income keeps pace.
Final Insights
You have made a commendable start by investing in SBI Smart Retire Plus Fund. After maturity, focus on using the corpus wisely to generate regular income. Avoid annuities due to their limitations and opt for a diversified portfolio of mutual funds. Regularly monitor your investments and align them with your retirement goals. This disciplined approach will ensure financial independence and peace of mind during your golden years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7619 Answers  |Ask -

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

Asked by Anonymous - Jan 04, 2025Hindi
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I am in debt trape around 8.5 lac with personal loan and credit card due
Ans: Evaluating Your Current Financial Situation
You have a debt of Rs 8.5 lakh, including personal loans and credit card dues.
This high-interest debt can strain your financial health and impact your investment goals.
Paying off these debts should be your immediate priority to secure your financial future.
Impact of Debt on Your Retirement Goal
The interest on credit card dues and personal loans is often very high.
High-interest debt reduces your disposable income for investments and savings.
Clearing your debts first will help you allocate funds towards achieving your Rs 2 crore goal.
Immediate Action Plan
Step 1: Prioritise Debt Repayment
Focus on paying off high-interest credit card dues first.
Use any available surplus or savings to reduce your debt immediately.
Avoid taking additional loans or credit until you clear existing liabilities.
Step 2: Consolidate Your Debt
Explore a low-interest personal loan to consolidate all high-interest debts.
This reduces the overall interest burden and simplifies repayment.
Ensure timely EMIs for the consolidated loan to maintain financial discipline.
Step 3: Budget and Reduce Expenses
Track your monthly expenses and cut non-essential spending.
Allocate more funds towards debt repayment to clear it faster.
Use budgeting apps or simple spreadsheets to monitor your progress.
Step 4: Avoid Credit Dependency
Stop using credit cards until all dues are cleared.
Use a debit card or cash to control spending and avoid further debt accumulation.
Build an emergency fund to handle unexpected expenses without using credit.
Reviewing Your Investment Plan
Achieving Rs 2 crore by 2030 is possible but requires strategic adjustments.
Currently, your priority should be clearing the Rs 8.5 lakh debt.
Once debts are cleared, invest aggressively towards your retirement goal.
Lump Sum Investment
Your Rs 15 lakh lump sum should not be invested before clearing debts.
After clearing debts, invest the lump sum strategically in equity mutual funds.
Consider systematic transfer plans (STPs) to reduce market timing risks.
Portfolio Rebalancing
Review your Rs 42 lakh portfolio for performance and alignment with your goal.
Ensure proper allocation across large, mid, and small-cap funds for balanced growth.
Avoid over-concentration in any single fund or asset category.
Importance of Professional Guidance
Engage with a certified financial planner to realign your portfolio.
Professional guidance helps select funds that match your risk profile and goals.
Regular funds, with expert advice, provide better support than direct funds.
Why Avoid Index Funds?
Index funds lack active management and fail to outperform during market corrections.
Actively managed funds deliver better returns with professional fund management.
A certified planner ensures better fund selection and periodic portfolio review.
Tax Considerations for Investments
LTCG above Rs 1.25 lakh from equity mutual funds is taxed at 12.5%.
STCG from equity mutual funds is taxed at 20%.
Tax-efficient investments and strategic withdrawals will optimise your post-tax returns.
Building a Debt-Free Future
Emergency Fund
Create an emergency fund covering 6–12 months of expenses.
This prevents dependence on credit during unforeseen events.
Adequate Insurance Cover
Ensure sufficient health and term insurance to protect your family financially.
Avoid investment-cum-insurance products like ULIPs and endowment plans.
Future SIP Contributions
Once debt is cleared, start SIPs to steadily build your retirement corpus.
SIPs in diversified equity funds can generate inflation-beating returns over time.
Final Insights
Clearing your Rs 8.5 lakh debt should be your immediate priority.
Post debt repayment, focus on achieving your Rs 2 crore retirement corpus.
Strategic investments in actively managed funds can help you achieve this goal.
Regular reviews and disciplined financial habits ensure long-term success.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7619 Answers  |Ask -

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

Asked by Anonymous - Jan 23, 2025Hindi
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Hi, I am 31 male, with monthly saving of 40k. Please suggest a strategy to earn at least 50k per month passively from this saving after next 5 years.
Ans: You want to generate Rs. 50,000 as passive income in 5 years from Rs. 40,000 monthly savings. This requires a well-planned investment strategy and consistent contributions. Let us create a detailed roadmap to help you achieve this.

Understanding the Target
Passive Income Requirement

You aim for Rs. 50,000 monthly passive income in 5 years.
This translates to Rs. 6 lakh annually.
Corpus Needed

To generate Rs. 6 lakh annually, a corpus of Rs. 1.2 crore to Rs. 1.5 crore is required.
This depends on the investment’s withdrawal rate and returns.
Investment Timeline

With a 5-year horizon, focus on growth investments with manageable risks.
Recommended Investment Strategy
1. Focus on Equity Mutual Funds
Higher Returns Potential

Equity mutual funds provide inflation-beating returns over the long term.
Allocate 60-70% of your savings to equity funds for higher growth.
Choose Actively Managed Funds

Actively managed funds outperform index funds due to professional fund management.
Diversify across large-cap, mid-cap, and small-cap funds.
SIP Methodology

Continue systematic investments to reduce market volatility impact.
Invest Rs. 25,000-30,000 monthly into equity mutual funds.
2. Diversify with Hybrid Funds
Balance Between Risk and Stability

Hybrid funds provide a mix of equity and debt, reducing portfolio volatility.
Allocate 20% of your savings to hybrid funds for stable growth.
Ideal for Medium-Term Goals

These funds suit a 5-year investment horizon.
They offer steady returns with moderate risk exposure.
3. Add Debt Funds for Stability
Preserve Capital for Passive Income

Allocate 10-15% of your savings to high-quality debt mutual funds.
Debt funds provide stable returns with lower risk.
Tax Efficiency

Long-term capital gains from debt funds are taxed as per your income tax slab.
Invest in debt funds that align with your tax planning goals.
4. Systematic Withdrawal Plan (SWP) for Passive Income
Generate Monthly Income

After 5 years, use an SWP to draw Rs. 50,000 per month.
SWP allows you to withdraw a fixed amount while keeping the corpus invested.
Tax Benefits of SWP

Withdrawals are taxed only on the gains, not the principal.
This makes SWP a tax-efficient option for passive income.
Creating a Balanced Portfolio
Equity-Oriented Portfolio
Diversification

Invest in multiple equity fund categories to spread risks.
Avoid investing in just one type of fund.
Avoid Index Funds

Index funds mirror the market but may not maximise returns.
Actively managed funds offer better growth opportunities.
Regular Monitoring and Rebalancing
Annual Review

Evaluate your portfolio performance yearly.
Ensure it aligns with your target and market conditions.
Rebalancing When Needed

Adjust allocations to maintain a balance between equity and debt.
Increase debt allocation as you approach your goal.
Emergency Fund and Insurance
Build an Emergency Fund
Safeguard Investments
Set aside 6-12 months of expenses in a liquid fund.
This prevents disruptions to your investment plan during emergencies.
Adequate Insurance Coverage
Protect Your Family’s Future
Ensure you have a term insurance plan covering at least 10 times your annual income.
Health insurance is equally important to cover medical emergencies.
Avoid Common Mistakes
Do Not Overlook Inflation

Plan for inflation-adjusted income.
Increase savings or returns to counter rising costs.
Avoid Direct Funds

Direct funds lack personalised guidance from a Certified Financial Planner.
Investing through a planner ensures better fund selection and performance monitoring.
Stay Consistent

Avoid pausing or stopping SIPs due to market volatility.
Consistency in investing helps achieve long-term goals.
Do Not Time the Market

Focus on disciplined investing rather than predicting market highs and lows.
Final Insights
Generating Rs. 50,000 passive income in 5 years is achievable with focused savings and investments. Increase your SIP contributions, diversify your portfolio, and ensure tax-efficient withdrawals using SWP. Regularly monitor your progress and adjust the strategy as needed. This disciplined approach will help you achieve your goal comfortably.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |215 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jan 23, 2025

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Career
I have a query regarding the NEET UG 2025 registration for my daughter. Her Aadhaar card mentions her name as Kripa Kamal Sheth, including her father's name as the middle name. However, her Class 10 CBSE mark sheet lists her name as Kripa Sheth, with her father's name, Kamal Sheth, mentioned separately. We were able to use DigiLocker to successfully fetch her Class 10 CBSE mark sheet using the name on her Aadhaar card. Considering the latest notification about Aadhaar usage for NEET registration, I would like to confirm whether this discrepancy in naming conventions across documents will cause any issues during her NEET UG registration process. Your advice on this matter would be greatly appreciated. Thank you for your assistance.
Ans: Hi Kamal
Please ensure that the name registered on your daughter's SSLC (10th standard) certificate matches the name on her birth certificate. The birth certificate is a primary document for everyone, whereas an Aadhaar card is not considered fundamental (even to obtain an Aadhaar, proof of date of birth is required).

Additionally, the government plans to implement a "One Nation, One Card" system. In the future, inconsistencies in names may pose problems when completing any course or applying for jobs, as well as when opening a bank account or obtaining PF or PAN. Therefore, it is crucial to prevent any potential issues related to name discrepancies.

If the names on the birth certificate and the SSLC mark sheet do not match, I recommend consulting a Notary Public for guidance.

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |215 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jan 23, 2025

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Career
Can i apply for neet 2025 can i eligible for neet 2025 i failed in class 12
Ans: Hi Jaimin,

According to NEET'24, here are the eligibility criteria for applying.

CHAPTER 5.4 Qualifications and Qualifying Examination Code(PAGE NO. 19)
To be eligible for NEET UG 2024, candidates must refer to the following criteria based on their qualifying examination.

Based on your query, you fall under **CODE 01:**
A candidate who is appearing in the qualifying examination, i.e., class 12 in 2024, whose result is awaited, may apply and appear in the test but he/she shall not be eligible for admission to the Undergraduate Medical Courses if he/she does not pass the qualifying examination with the required pass percentage at the time of first round of Counselling. Candidates who have appeared or are appearing at the qualifying Examination with English, Physics, Chemistry, and Biology as the main subject and expect to pass the Examination with the required percentage of marks are also eligible to apply and appear in the Competitive Entrance Examination. However, their candidature will be considered only if they provide documentary evidence of having passed the qualifying Examination with the required subjects and percentage of marks.

Based on the information above and with the registration deadline set for the third week of March 2025, you are eligible to apply. However, you must achieve the required marks to participate in the counseling process; otherwise, it will not be possible.

IMPORTANT POINT: NEET takes into account the results from HSC exams.

Make sure to clear the exam with the necessary credentials.

ALL THE BEST!

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |215 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jan 23, 2025

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Career
Hello I failed in class 12 last year i will re appear in February 2025 can i eligible for neet 2025 ?? I am totally depressed ???? because of failure i want to become mbbs doctor but i can't do i know but from class 4 i wish to become doctor my family gives support me lot everyone scolds me that i can't do anything but i want to proud my parents that i will also become doctor ????????
Ans: Hi Jaimin,

According to NEET'24, here are the eligibility criteria for applying.

CHAPTER 5.4 Qualifications and Qualifying Examination Code(PAGE NO. 19)
To be eligible for NEET UG 2024, candidates must refer to the following criteria based on their qualifying examination.

Based on your query, you fall under **CODE 01:**
A candidate who is appearing in the qualifying examination, i.e., class 12 in 2024, whose result is awaited, may apply and appear in the test but he/she shall not be eligible for admission to the Undergraduate Medical Courses if he/she does not pass the qualifying examination with the required pass percentage at the time of first round of Counselling. Candidates who have appeared or are appearing at the qualifying Examination with English, Physics, Chemistry, and Biology as the main subject and expect to pass the Examination with the required percentage of marks are also eligible to apply and appear in the Competitive Entrance Examination. However, their candidature will be considered only if they provide documentary evidence of having passed the qualifying Examination with the required subjects and percentage of marks.

Based on the information above and with the registration deadline set for the third week of March 2025, you are eligible to apply. However, you must achieve the required marks to participate in the counseling process; otherwise, it will not be possible.

IMPORTANT POINT: NEET takes into account the results from HSC exams.

Make sure to clear the exam with the necessary credentials.

ALL THE BEST!

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |215 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jan 23, 2025

Listen
Career
Hello I failed in class 12 last year i will re appear in February 2025 can i eligible for neet 2025 ?? I am totally depressed ???? because of failure i want to become mbbs doctor but i can't do i know but from class 4 i wish to become doctor my family gives support me lot everyone scolds me that i can't do anything but i want to proud my parents that i will also become doctor ????????
Ans: Hi Jaimin,

According to NEET'24, here are the eligibility criteria for applying.

CHAPTER 5.4 Qualifications and Qualifying Examination Code(PAGE NO. 19)
To be eligible for NEET UG 2024, candidates must refer to the following criteria based on their qualifying examination.

Based on your query, you fall under **CODE 01:**
A candidate who is appearing in the qualifying examination, i.e., class 12 in 2024, whose result is awaited, may apply and appear in the test but he/she shall not be eligible for admission to the Undergraduate Medical Courses if he/she does not pass the qualifying examination with the required pass percentage at the time of first round of Counselling. Candidates who have appeared or are appearing at the qualifying Examination with English, Physics, Chemistry, and Biology as the main subject and expect to pass the Examination with the required percentage of marks are also eligible to apply and appear in the Competitive Entrance Examination. However, their candidature will be considered only if they provide documentary evidence of having passed the qualifying Examination with the required subjects and percentage of marks.

Based on the information above and with the registration deadline set for the third week of March 2025, you are eligible to apply. However, you must achieve the required marks to participate in the counseling process; otherwise, it will not be possible.

IMPORTANT POINT: NEET takes into account the results from HSC exams.

Make sure to clear the exam with the necessary credentials.

ALL THE BEST!

...Read more

Dr Shyam

Dr Shyam Jamalabad  |89 Answers  |Ask -

Dentist - Answered on Jan 23, 2025

Asked by Anonymous - Dec 16, 2024Hindi
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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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