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Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 20, 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
Rameshwar Question by Rameshwar on Aug 20, 2024Hindi
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Money

Just to clarify that the investments worth Rs 44 Lakhs jointly in the name of Self and wife were made by me in PPF Accounts only and it is getting matured on 01st April 2025. Is this a good investment in PPF .Kindly advise on this and for further investing the same amount.... Best Regards

Ans: Your investment in PPF has provided safety and assured returns. However, with retirement on the horizon, diversifying your investments is key. Mutual Funds (MFs) offer higher growth potential, especially equity-oriented funds. Investing in MFs through a systematic plan can help you achieve better returns over time, balancing growth with moderate risk. As your PPF matures, consider reallocating a portion to MFs to build a stronger retirement corpus.

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  |8284 Answers  |Ask -

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

Asked by Anonymous - May 28, 2024Hindi
Money
I have around 4 lakhs in PPF as of now 2024 May and its going to mature by 2029 March . If I invest around 1.5 lakhs around every year from now it will 1.5*5 which is 7.5 lakhs and maturity amount will be around 15 lakhs with prevailing interest rate of 7.1 annually . Is it wise to invest this 1.5 lakhs annually in any Equity Mutual fund for over 5 years getting returns over 12-13% . Which option would be beneficial as PPF maturity amount is tax free.
Ans: Investing wisely requires understanding the potential returns, risks, and tax implications of different investment options. In your case, you are considering continuing your investment in the Public Provident Fund (PPF) versus shifting to an equity mutual fund. Let's explore these options in detail.

Understanding Your Current PPF Investment
You have Rs 4 lakhs in your PPF account, which will mature in March 2029. You plan to invest Rs 1.5 lakhs annually until maturity. The current interest rate for PPF is 7.1% per annum. PPF investments are attractive due to their tax-free returns at maturity.

Projected PPF Maturity Amount
With your planned annual contributions, let's calculate the projected maturity amount.

Current PPF balance: Rs 4 lakhs
Annual investment: Rs 1.5 lakhs for the next 5 years
PPF interest rate: 7.1% per annum
Maturity year: 2029
Given these inputs, the maturity amount can be calculated using the compound interest formula specific to PPF.

PPF Benefits
Tax-Free Returns: The maturity amount, including interest earned, is tax-free.
Risk-Free Investment: PPF is a government-backed scheme, ensuring safety of principal.
Fixed Returns: The interest rate, although subject to change, offers a predictable return.
PPF Limitations
Lower Returns: Compared to equity investments, PPF returns are relatively lower.
Lock-In Period: PPF has a long lock-in period, reducing liquidity.
Exploring Equity Mutual Funds
Equity mutual funds invest in stocks and have the potential to offer higher returns over the long term. You are considering an expected return of 12-13% per annum.

Projected Returns from Equity Mutual Funds
Let’s consider the potential growth of Rs 1.5 lakhs invested annually in an equity mutual fund with a 12-13% annual return over the next five years.

Equity Mutual Funds Benefits
Higher Potential Returns: Equity mutual funds generally offer higher returns than fixed-income investments like PPF.
Liquidity: Equity mutual funds are more liquid compared to PPF, allowing easier access to your money.
Diversification: Mutual funds provide diversification across different stocks and sectors.
Equity Mutual Funds Limitations
Market Risk: Returns are subject to market fluctuations, making them more volatile.
Tax Implications: Capital gains from equity mutual funds are subject to taxes, affecting net returns.
Comparative Analysis: PPF vs. Equity Mutual Funds
To determine the better investment option, let’s compare the projected returns and other factors:

PPF
Initial Investment: Rs 4 lakhs
Annual Investment: Rs 1.5 lakhs
Interest Rate: 7.1%
Maturity Amount: Approximately Rs 15 lakhs (total contributions + interest)
Tax-Free: Yes
Equity Mutual Funds
Annual Investment: Rs 1.5 lakhs
Expected Return: 12-13% per annum
Estimated Value: Higher potential returns, but subject to market volatility and taxation
Tax Implications: Long-term capital gains tax applicable
Calculation Example
If you invest Rs 1.5 lakhs annually in an equity mutual fund, assuming a 12% annual return, the approximate value after 5 years would be significantly higher than the amount invested in PPF.
Risk vs. Return Considerations
PPF
Low Risk: Government-backed, safe investment
Stable Returns: Fixed interest rate, predictable growth
Tax Benefits: Entire maturity amount is tax-free
Equity Mutual Funds
Higher Risk: Subject to market risks, returns can vary
Higher Returns: Potential to earn significantly more than PPF
Taxation: Long-term capital gains tax applies on returns
Assessing Your Financial Goals
Risk Tolerance: If you prefer safety and guaranteed returns, PPF is suitable.
Return Expectation: If aiming for higher returns and willing to take some risk, equity mutual funds are better.
Tax Considerations: PPF offers tax-free returns, while equity funds are taxed.
Recommendations
Given your investment horizon of five years and the goal to maximize returns, consider the following:

Diversified Approach
PPF: Continue investing Rs 1.5 lakhs annually for the tax-free, guaranteed returns.
Equity Mutual Funds: Allocate a portion of your funds to equity mutual funds for higher potential returns. This balanced approach mitigates risks while leveraging growth opportunities.
Regular Monitoring
PPF: Monitor interest rates and contributions.
Equity Funds: Regularly review fund performance and market conditions.
Consultation with a Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized advice, considering your financial goals, risk tolerance, and tax implications. They can help you create a balanced investment strategy that aligns with your objectives.

Conclusion
Investing Rs 1.5 lakhs annually in PPF offers stable, tax-free returns with minimal risk. However, equity mutual funds can provide higher returns, albeit with greater risk and tax implications. A diversified approach, combining both PPF and equity mutual funds, can balance safety and growth. Consulting a CFP will help tailor your investment strategy to meet your financial goals effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jun 23, 2024Hindi
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Money
Hi, I am 36 years old, planning to invest 10k montly in pff srarting from July. Is that right to invest in ppf at this point of age or can invest tje same in any different scheme?
Ans: At 36, planning for the future is wise. Investing Rs. 10,000 monthly can build a substantial corpus. Your choice depends on your financial goals. Let’s explore different options.

Public Provident Fund (PPF)
Long-Term Safety: PPF offers safety and tax benefits. It is a government-backed scheme with stable returns.

Tax Benefits: Contributions are eligible for tax deductions under Section 80C. Interest earned is tax-free.

Lock-In Period: PPF has a 15-year lock-in period. This makes it suitable for long-term goals.

Limited Liquidity: Partial withdrawals are allowed after the seventh year. This limits access to funds in emergencies.

Mutual Funds for Growth
Higher Returns Potential: Mutual funds can offer higher returns. They invest in equities, bonds, and other assets.

Flexibility: You can choose from various fund types. Equity funds are suitable for growth, while debt funds are for stability.

Liquidity: Mutual funds offer better liquidity. You can redeem units based on your financial needs.

Professional Management: Actively managed funds have professional fund managers. They aim to outperform the market.

Actively Managed Funds vs. Index Funds
Actively Managed Funds: These funds are managed by experts. They can adjust the portfolio based on market conditions.

Disadvantages of Index Funds: Index funds only replicate the market. They cannot outperform it and lack flexibility.

Direct Funds vs. Regular Funds
Disadvantages of Direct Funds: Direct funds lack advisory services. You might miss out on professional guidance.

Benefits of Regular Funds: Investing through a Certified Financial Planner (CFP) offers strategic advice. This ensures better decision-making.

Balancing Safety and Growth
Diversification: A balanced approach is ideal. Allocate a portion to PPF for safety and the rest to mutual funds for growth.

Risk Management: Diversifying your investments helps manage risk. This ensures you achieve your financial goals.

Investment Strategy
Consistent Contributions: Regular contributions help build wealth over time. Stick to your plan and review it periodically.

Monitor Performance: Regularly monitor your investments. Adjust your strategy based on performance and market conditions.

Stay Informed: Keep yourself updated on market trends and financial news. This helps in making informed decisions.

Final Insights
Investing Rs. 10,000 monthly can build a significant corpus. PPF offers safety and tax benefits but has limited liquidity. Mutual funds provide higher returns potential and flexibility. A balanced approach with both PPF and mutual funds can achieve your financial goals. Consider actively managed funds and regular funds for professional guidance. Regularly monitor and adjust your investments to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1561 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Apr 24, 2025

Career
Sir my daughter is doing Btech EEE at BIT Mesra Patna campus , she is securing 8 CGPA there . She is little bit upset due to poor placement there , what to do
Ans: Hello Alok.
Nothing will happen with an upset mood, and there is no point in blaming the institute at this stage. It is better to search for another path while completing the B.Tech. @ BIT Mesra. Here are a few suggestions for your daughter: (1) Start preparing for the GATE exam, which opens the doors for MTech at IITs/NITs or PSU jobs (like BHEL, NTPC, ONGC). (2) Focus on GRE and MBA (3) Join online Platforms: Coursera, NPTEL, Udemy, LinkedIn for advanced learning techniques related with EEE and CSE (4) Focus on Off-Campus Job Preparation, in which she can prepare for Aptitude, Coding, Core concepts etc (5) While in final year, create accounts on LinkedIn, Indeed, AngelList, naukri.com etc/ (5) If possible, join CDAC (Centre for Development of Advanced Computing) offer excellent 6-month PG diplomas with placement support (great ROI).(6) Talk to seniors/alumni for realistic inspiration and off-campus job guidance. (7) Consider a mock placement drive or aptitude training course in the final year.
Best of luck to your daughter for her upcoming bright future.
Follow me if you like the reply. Thanks
Radheshyam

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Nayagam P

Nayagam P P  |4453 Answers  |Ask -

Career Counsellor - Answered on Apr 23, 2025

Asked by Anonymous - Apr 23, 2025
Career
My daughter 90percentile in jee mains 2025,and puc board exam 95.6 percentage and kcet is 101 marks we are obc ncl and catgory 1 reservation can we get nit surathkal college for admission or other top 3 college in bangalore and she want to take jee advance 2025 , which branchas scope and high package
Ans: As far as KCET is concerned,? here are the some approximate expected KCET opening and closing ranks for the OBC-NCL category across four top engineering colleges in Bengaluru:?

RV College of Engineering (RVCE)
Computer Science & Engineering: Opening – 2,000 | Closing – 3,000
Electronics & Communication Engineering: Opening – 2,500 | Closing – 3,500
Electrical & Electronics Engineering: Opening – 3,000 | Closing – 4,500
Mechanical Engineering: Opening – 4,000 | Closing – 6,000
Civil Engineering: Opening – 5,000 | Closing – 7,000?

BMS College of Engineering (BMSCE)
Computer Science & Engineering: Opening – 2,500 | Closing – 4,000
Electronics & Communication Engineering: Opening – 3,000 | Closing – 5,000
Electrical & Electronics Engineering: Opening – 4,500 | Closing – 6,500
Mechanical Engineering: Opening – 6,000 | Closing – 8,000
Civil Engineering: Opening – 7,000 | Closing – 9,000?

M S Ramaiah Institute of Technology (MSRIT)
Computer Science & Engineering: Opening – 2,200 | Closing – 3,800
Electronics & Communication Engineering: Opening – 3,500 | Closing – 5,500
Electrical & Electronics Engineering: Opening – 5,000 | Closing – 7,000
Mechanical Engineering: Opening – 6,500 | Closing – 8,500
Civil Engineering: Opening – 7,500 | Closing – 9,500?

Dayananda Sagar College of Engineering (DSCE)
Computer Science & Engineering: Opening – 3,000 | Closing – 5,000
Electronics & Communication Engineering: Opening – 4,500 | Closing – 6,500
Electrical & Electronics Engineering: Opening – 6,000 | Closing – 8,000
Mechanical Engineering: Opening – 7,500 | Closing – 9,500
Civil Engineering: Opening – 8,500 | Closing – 10,500?

Note: The above ranks are indicative and based on available data for the OBC-NCL category. Every year, actual cutoffs may vary based on factors like seat availability, reservation policies, and candidate preferences.

?Regarding the chances of getting seats through JEE/JoSAA Counselling, here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Daughter's Admission Chances Using JoSAA Data
Step 1: Collect Your Daughter's Key Details
Before starting, note down the following details:

Her JEE Main percentile
Her category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Her Preferred institute types (NIT, IIIT, GFTI)
Her Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If your daughter is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select her Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your daughter's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4453 Answers  |Ask -

Career Counsellor - Answered on Apr 23, 2025

Asked by Anonymous - Apr 23, 2025
Career
I got 98.02%ile in JEE MAINS session 2 . (EWS) Can I get TOP NIT (CSE) ?? EWS RANK 4146
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...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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