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Vivek

Vivek Lala  |301 Answers  |Ask -

Tax, MF Expert - Answered on Mar 11, 2023

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
Asked by Anonymous - Feb 09, 2023Hindi
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Hi my CTC is 1600001, my PF contribution is 95,988, My policies - 1,60,000, Tution fee -50000, Sukanya yojana - 25000, Atal pension - 7848, Rent - 2,40,000. What tax i need to pay and how i save my tax to do further Investment, Is home loan advisable for tax benefit in current scenario.

Ans: Tax will be as per the tax regime that you wish to select. Preferably new regime is better looking at your rent and investments. Home loan will give an additonal interest benefit,so depending on the cash flow of an individual , home loan can be availed.
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  |7100 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

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Dear Sir...Im turing 36 this Dec....I have home loan remaining around 33.5 lakh(EMI 31648/month)...Im looking forward to close this by end of 2028 and also to build corpus nearly 20 lakh new property down payment...my investments are as per below, 1.Quant/kotak/axis small cap direct growth- 10K/month(9 month old) 2.parag parikh ELSS tax saver- 2K/month(12 month old) 3.mirae asset ELSS tax saver-2K/month(12 month old) 4.quant ELSS tax saver-3K/month(16 month old) 5.Kotak ELSS tax saver-2K/month(16 month old) 6.SBI PSU direct plan-3K/month( 1 month) 6.Aditya birla sunlife PSU equity fund- 5K/month(1 month).apart from this investing stocks (invested 60K till date) need your expertise if I need to change funds...these are combined investment by me & my wife..TAX saver are required to avoid tax liability under 80C...how much I need to invest further to achive the goal.....
Ans: Optimizing Your Investment Strategy for Financial Goals
It's commendable that you have a clear vision for your financial future. Balancing a home loan, tax-saving investments, and building a corpus for property down payment requires a strategic approach. Let's evaluate your current investments and suggest improvements.

Evaluating Current Investments
You have diversified your investments across various mutual funds and ELSS schemes. This is a good start. Here’s a brief analysis of your portfolio:

Small Cap Funds: Investing Rs. 10K/month in small cap funds for 9 months shows an aggressive growth strategy. Small cap funds offer high returns but come with higher risk.

ELSS Tax Saver Funds: You have significant investments in ELSS to avail tax benefits under Section 80C. This is prudent as it serves dual purposes of tax saving and wealth creation.

PSU Equity Funds: Your recent investments in PSU equity funds suggest a strategic shift towards stability. PSUs can offer relatively stable returns and dividends.

Stock Investments: Your stock investments of Rs. 60K till date indicate a hands-on approach to wealth building. Stock picking requires research and time, which you seem committed to.

Financial Goals: Home Loan Closure and Down Payment Corpus
Closing Home Loan by 2028
To close your home loan by 2028, you need to focus on prepayment strategies. Prepaying your loan can significantly reduce the interest burden. Here’s how you can approach it:

Prepayment Plan: Allocate any annual bonuses, increments, or windfall gains towards loan prepayment. Even small prepayments can shorten the loan tenure.

Increase EMI Amount: If possible, increase your EMI by a small percentage each year. This reduces the principal faster.

Building a Corpus for Property Down Payment
You aim to accumulate Rs. 20 lakh for a property down payment. Given your investment horizon of 4-5 years, here’s a structured approach:

Systematic Investment Plan (SIP): Continue your SIPs but focus on a mix of mid-cap, multi-cap, and balanced funds. These funds balance growth and stability.

Monthly Investment: To accumulate Rs. 20 lakh, calculate the required monthly SIP amount. This should include a realistic growth rate based on past performance.

Optimizing Your Portfolio
Reviewing Fund Performance
Small Cap Funds: Continue with small cap funds but monitor their performance regularly. Small cap funds can be volatile, so stay updated with their performance and market trends.

ELSS Funds: Consolidate your ELSS investments if needed. Too many funds can lead to overlapping and diluted returns. Choose the best-performing ELSS funds and focus on them.

PSU Funds: Continue with PSU funds for stability and dividends. However, ensure they align with your risk profile and long-term goals.

Suggested Funds for Additional Investment
To invest an additional Rs. 20K per month, consider the following types of funds:

Multi-Cap Funds: These funds offer flexibility to invest across different market capitalizations, providing a balanced growth approach.

Balanced Advantage Funds: These dynamically adjust the allocation between equity and debt based on market conditions, offering stability with growth.

Mid-Cap Funds: Mid-cap funds offer a balance between the high risk of small caps and the stability of large caps.

Focused Equity Funds: These funds invest in a concentrated portfolio of high-conviction stocks, potentially offering high returns with a focused risk approach.

Hybrid Funds: These funds invest in both equity and debt instruments, providing balanced risk and return.

Creating a Diversified Portfolio
Sample Allocation
Multi-Cap Funds: Rs. 5,000/month
Balanced Advantage Funds: Rs. 5,000/month
Mid-Cap Funds: Rs. 5,000/month
Focused Equity Funds: Rs. 3,000/month
Hybrid Funds: Rs. 2,000/month
This allocation ensures diversification across various asset classes, reducing risk while aiming for optimal returns.

Regular Monitoring and Rebalancing
Regularly monitor your investments and rebalance your portfolio annually. This ensures your portfolio remains aligned with your financial goals and risk tolerance.

Conclusion
Your current investment strategy is well thought out. By optimizing your portfolio and focusing on a mix of funds, you can achieve your financial goals of closing your home loan and building a property down payment corpus.

Continue your disciplined approach, stay informed, and adjust your investments as needed. Seek guidance from a Certified Financial Planner for personalized advice and to stay on track with your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7100 Answers  |Ask -

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

Asked by Anonymous - Jul 03, 2024Hindi
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Hi My per annum package is around Rs. 21 lacs. I have a home loan EMI of Rs. Rs. 2.28 lacs. I have investment of Rs. 3.6 lacs in various insurance schems. Apart from that I have some investment of Rs. 200000 in MF. Please guide me how much investment I need to do for tax savings ?
Ans: Income and Existing Investments
Annual Package: Rs 21 lakhs
Home Loan EMI: Rs 2.28 lakhs per annum
Insurance Investments: Rs 3.6 lakhs
Mutual Fund Investments: Rs 2 lakhs
Tax Saving Investments Under Section 80C
To maximize tax savings under Section 80C, you can invest up to Rs 1.5 lakhs per annum. Here’s a breakdown:

Existing Eligible Investments
Home Loan Principal Repayment: Part of your home loan EMI goes towards principal repayment, which qualifies under Section 80C.
Insurance Premiums: The Rs 3.6 lakhs in insurance schemes might include premium payments that are eligible under Section 80C.
Additional Investments Required
Calculate Existing Deductions: First, identify the portion of your EMI and insurance premiums that qualify for Section 80C. Let's assume your home loan principal repayment is Rs 1 lakh per annum and the insurance premiums are Rs 50,000 per annum.
Investment Suggestions for Additional Tax Savings
To fully utilize the Rs 1.5 lakhs limit, you need to invest an additional Rs 50,000.

Equity-Linked Savings Schemes (ELSS)
Benefits: ELSS funds offer tax savings and have the potential for high returns.
Lock-in Period: They come with a 3-year lock-in period, the shortest among all tax-saving options under Section 80C.
Public Provident Fund (PPF)
Benefits: PPF offers tax-free returns and is a safe investment option.
Lock-in Period: 15-year lock-in, but partial withdrawals are allowed after the 7th year.
Sukanya Samriddhi Yojana (SSY)
Benefits: If you have a daughter, SSY is a good option with attractive interest rates and tax benefits.
Lock-in Period: Till the daughter turns 21 or gets married after the age of 18.
National Savings Certificate (NSC)
Benefits: NSC is a safe investment option with a fixed interest rate.
Lock-in Period: 5 years.
Voluntary Provident Fund (VPF)
Benefits: You can contribute more than your mandatory EPF contribution.
Returns: Similar to EPF returns and safe.
Other Tax-Saving Sections
Section 80D - Health Insurance Premium
Benefits: Deduction up to Rs 25,000 for self, spouse, and children. Additional Rs 25,000 for parents under 60 and Rs 50,000 if they are over 60.
Section 80E - Education Loan Interest
Benefits: Deduction on interest paid on education loans for higher studies.
Section 24 - Home Loan Interest
Benefits: Deduction up to Rs 2 lakhs on interest paid on home loan.
Review and Reallocate Existing Investments
Insurance Policies
Evaluation: Assess if your insurance policies are purely for investment or provide adequate life cover.
Reallocation: Consider surrendering or reducing investment-cum-insurance policies and reallocating to mutual funds.
Mutual Funds
Focus on Growth: Since your goal is wealth creation, consider allocating more to equity funds for higher growth potential.
Final Insights
Maximize Section 80C: Utilize the full Rs 1.5 lakh limit under Section 80C with a mix of ELSS, PPF, and SSY.
Diversify: Ensure your portfolio is diversified across different asset classes for balanced growth and risk management.
Regular Monitoring: Periodically review and adjust your investments to stay aligned with your financial goals.
Certified Financial Planner: Consider consulting a Certified Financial Planner for personalized advice and strategy.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Anu Krishna  |1320 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 22, 2024

Asked by Anonymous - Nov 16, 2024Hindi
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Hi , I am a professor mech engineer , after death of my wife and due to having 5 year girl baby I planned for 2 nd marriage as I live alone away from home town because my of job with my little baby . I accepted a widow having 2 child ,she was working in a govt job 250 km away , after ensuring and agreeing her possibility of transfer and job vacancy @govt office near my house and ensuring she agreed that she will come to live with me along with her 2 kids and my little baby as her trasfer was due in comming few months . We lived apart during her job at 250 km away.,while meeting on weekly offs 6 /7 time in 6 months , then she take 360 degree u turn and said she will not get job transfer to my place and get her trasfer in other dept. in same previous office. And started telling many reasons like she will loose her children's inheritance in her in-laws property ,she will loose promotion , kids Don't want trasfer , and said we will live apart forever . This was contradictory to earlier agreed things .and my my purpose to live in family with my baby not fulfilled , so after long ruckus ,I mutually got divorce from her , Then After divorce I decided to marry non working women having no child and don't expect child as I am @48 year old and tired of living alone and managing job ,girl , house chores . I married to a divorcee girl from Pune ,she was BA first year college drop out girl of 44 yr age after 6 months of long dating on week ends . During 6 months I tried to know her indepth but was don't used to talk much as I was trying to know her true nature, we visited many places ,movies . She seemed perfect as per my requirement of girl wanting no child , and she is house wife . after marriage she behave well for 1 st week ,then she started trouble to hate my baby ( became kaikai )on pety things , she want my baby to house chores at the cost of her important year of 10th std study . She don't liked me taking tution of girl , she didn't like if I help my girl any way . She don't like if I spent some money on my girl . She used to fight all night and don't let me sleep . Now she stated demanding that she want baby , though I was against and b4 marriage agreed to not have any more child due to old age ,cost ,and no personal time for self , then I agreed to have child but b4 that I got her and my fertility tested ,she had weak eggs and syst on her reproductive organs and doc warned to not go for pregnancy due to risk and probability of unhealthy baby birth , but she kept repeating That she want child we consulted 4 Drs. She used to fight and go to her mother's home for 2/4 months after living with me for 2/3 days only . Now she wants divorce , and asks me to keep my girl in hostel if I want her in my life . This Ramayan has left me baffled , What should I do ??? .....
Ans: Dear Anonymous,
The reason to marry for you mainly has been companionship, a mother for your daughter...
And marriage is not a transaction BUT a meeting of minds...when there is no compatibility, there is no space for agreeing on the same things or wanting to make things work which is possibly what has happened with your 2nd and 3rd marriage.
If you want this marriage to work, there has to be an equal commitment by both of you, so, start by emotionally bonding first. Slowly build on this by making goals for the marriage and the future...your only goal can't be mother for your child...not all women are going to readily accept this and some may even falter along the way. Allow the lady and your daughter to bond together for sometime so they develop a unique relationship...
Understand that transactional relationships do not last; so, invest enough time in building trust in that companionship for it to become something meaningful

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

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Anu Krishna  |1320 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 22, 2024

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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