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Ramalingam

Ramalingam Kalirajan  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 19, 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 - Jan 28, 2024Hindi
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I am currently a NRI by virtue of my profession (seafarer). Is there a provision for me to transfer overseas the funds arising from sale of property (agricultural and/or non-agricultural). What would be the tax liabilities and how can I minimize these liabilities?

Ans: Upto 1 Million USD, an NRI can transfer from NRO account to NRE account per annum. Tax paid certificate need to be submitted to the banker before transfer.
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  |8151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Money
Hi, I am 62 and retired, and my terminal dues are invested in Mutual Fund and Equities in India. I earn monthly pension of Rs.60000/-. I have term insurance of Rs.50 lacs plus other life insurance for Rs.20 lacs. I also own a property in India. My son and daughter (both married) are settled abroad. My son continues to be NRI but my daughter have relinquished her Indian citizenship. My son is planning to buy his first home abroad and I feel he may need some financial assistance from me. Is it advisable to send money abroad particularly for acquiring property out of India? My next concern is how do I ensure financial support for my wife in my absence. In absence of both of us, how does inheritance work in connection with my ancestral and own property in India. I have no libilities in India.
Ans: First, let me appreciate your thoughtful and forward-looking approach towards managing your finances and planning for your family's future. It’s commendable that you’re thinking about how to support your son while ensuring financial security for your wife and considering the inheritance for your children. Now, let’s break down your concerns and address them one by one.

Evaluating Financial Assistance to Your Son
Your son is planning to buy his first home abroad, and you’re considering sending him financial assistance. Let’s evaluate this carefully:

Legal and Tax Implications
Sending money abroad has legal and tax implications. In India, the Liberalized Remittance Scheme (LRS) allows residents to send up to $250,000 abroad per financial year without needing special approval. However, you should be aware of the tax implications both in India and the country where your son resides.

Consult with a Certified Financial Planner to understand the tax liabilities. Ensure all documentation and compliance with the Reserve Bank of India's regulations are followed. This will help avoid legal complications.

Financial Impact on Your Retirement
Assess how this financial assistance will impact your retirement corpus. You have a pension of Rs. 60,000 per month, and investments in mutual funds and equities. While assisting your son is a noble gesture, it's important to ensure it doesn’t compromise your financial security.

Consider how much you can afford to give without straining your retirement funds. A detailed analysis of your current investments and future cash flow requirements can help determine a comfortable amount to assist your son.

Emotional Considerations
Providing financial assistance to your son can be emotionally rewarding. It strengthens family bonds and provides him with a significant boost. Discuss this openly with your son to understand his needs and ensure that both of you are on the same page.

Ensuring Financial Support for Your Wife
Your next concern is ensuring financial support for your wife in your absence. Here’s a detailed approach:

Regular Income Sources
Your monthly pension of Rs. 60,000 is a reliable source of income. Additionally, your investments in mutual funds and equities can generate returns. It’s important to maintain a diversified portfolio to mitigate risks and ensure steady income.

Consider setting up a systematic withdrawal plan (SWP) from your mutual fund investments. This will provide a regular monthly income to your wife. Ensure that the investments are in her name to avoid any complications.

Term and Life Insurance
You have term insurance of Rs. 50 lakh and other life insurance of Rs. 20 lakh. Ensure that your wife is the nominee for these policies. This will provide her with a lump sum amount in case of your absence, which can be invested to generate regular income.

Healthcare and Emergency Fund
Allocate a portion of your investments to a healthcare fund. Medical expenses can be significant, and having a dedicated fund ensures that your wife’s healthcare needs are met. Additionally, maintain an emergency fund equivalent to 6-12 months of expenses to cover unforeseen situations.

Inheritance and Property
Inheritance planning is crucial, especially with properties involved. Here’s a structured approach:

Creating a Will
Drafting a will is essential to ensure that your assets are distributed according to your wishes. Specify the distribution of your ancestral and personal property in the will. Appoint an executor to manage the execution of your will.

Nomination and Joint Ownership
Ensure that all your investments, including mutual funds, equities, and bank accounts, have your wife as a nominee. Joint ownership of property with your wife will simplify the transfer process.

Legal and Tax Implications
Inheritance laws vary, and it’s important to understand the legal and tax implications. In India, inheritance tax is not applicable, but there may be other taxes or fees. Consult with a legal advisor to ensure all aspects are covered.

Mutual Funds and Their Role
Mutual funds play a significant role in your investment portfolio. Let’s delve into the details:

Types of Mutual Funds
There are various types of mutual funds, each with its own risk and return profile. Equity funds invest in stocks and have high growth potential but come with higher risk. Debt funds invest in fixed-income securities and provide stable returns with lower risk. Balanced or hybrid funds invest in both equities and debt, offering a balanced approach.

Advantages of Mutual Funds
Diversification: Mutual funds provide diversification, reducing risk by investing in a mix of assets.

Professional Management: Fund managers with expertise manage the investments, ensuring optimal returns.

Liquidity: Mutual funds offer liquidity, allowing you to redeem your investments when needed.

Flexibility: You can choose funds based on your risk appetite and financial goals.

Risks and Compounding
Market Risk: Equity funds are subject to market fluctuations, affecting returns.

Interest Rate Risk: Debt funds are impacted by changes in interest rates.

Despite the risks, the power of compounding can significantly grow your investments over time. Reinvesting dividends and staying invested for the long term can yield substantial returns.

Final Insights
In conclusion, your proactive approach towards financial planning is commendable. Here are the key takeaways:

Financial Assistance to Son: Assess legal, tax, and financial implications. Consult a Certified Financial Planner for detailed advice.

Support for Wife: Ensure regular income through pensions, SWPs, and insurance. Allocate funds for healthcare and emergencies.

Inheritance Planning: Draft a will, ensure nominations, and consult a legal advisor for smooth inheritance transfer.

Mutual Fund Investments: Continue leveraging mutual funds for diversification, professional management, and compounding benefits. Choose funds aligned with your risk appetite and financial goals.

Your thoughtful planning ensures financial security for your family and a bright future for your children.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

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Hello! Advait ji, My Mom is 82 and gets family pension. She has 70 lakhs FD maturing in March 25. I would like to invest 10 lakhs in FD as emergency fund. Kindly advice how to invest the remaining 60 lakhs, which is risk free and gives good returns (better than FD) She has the following investment - 1. 10 lakhs in Edelweiss Multicap Fund - Gr 2. 2 lakhs 40 thousand in HDFC Flexicap Fund -Gr 3. 2 lakhs 40 thousand in HDFC Midcap Opportunities Fund 4. 2 lakhs 50 thousand in Invesco India Focused Fund 5. 2 lakhs 50 thousand in LIC MF Infrastructure Fund 6. 2 lakhs 50 thousand in Motilal Oswal Large and Mid-Cap 7. 2 lakhs 40 thousand in Nippon India Large Cap Fund 8. 2 lakhs 40 thousand in Nippon India Multicap Fund 9. 2 lakhs 40 thousand in Nippon India Small Cap Fund 10. 2 lakhs 40 thousand in Quant Small Cap Fund. Total Mutual fund investment of 32 lakhs. Apart from MF she has invested in Bajaj Allianz Life insurance plan, where she will investRs 2 Lakhs per year for 10 years. This is a guaranteed plan. She is comfortable running the house with her pension. However, please suggest shorter duration investments (5 yrs) Regards Namrata
Ans: Hello;

She may opt for any of these investment avenues:

1. Post office time deposit scheme(FDs offered by post office for 1,2,3 & 5 year tenure); Joint holding allowed; Premature withdrawal allowed after 6M. (Current ROI 6.9-7.5%)

2. NSC with a fixed tenure of 5 years; No premature withdrawal allowed. Can be held jointly(Current ROI 7.7%)

3. KVP: Although tenure is 9 yrs and 5 months, you may do premature encashment after 2.5 years; joint holding allowed;(Current ROI 7.5%)

You may approach a reliable postal agent to process these investments to avoid hassle of frequent post visits and associated hardships.

These are backed by GOI so no risk of default.

Hope this meets your requirements.

Best wishes;

...Read more

Dr Dipankar

Dr Dipankar Dutta  |1061 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 25, 2025

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I am a first year student at MIT Manipal,currently pursuing Electrical and Electronics engineering(EEE),and I am have been given a choice to apply for branch change in my institute either to CSE,Mathematics and Computing(MnC) or ECE in my second year. I did not study Computer Science in 11th and 12th, and I coding in C for the first time as part of my 1st year syllabus.I am not very much interested to coding,but I am learning it since it is there in the course syllabus. My parents suggest switching to CSE, but they are not engineers and do not have insights into the current job market. Since my batch will be passing out in 2028, I want to understand the job scenario for CSE, MnC, ECE, and EEE graduates by then. Among these,which branch provides better opportunities for core engineering jobs with good or decent salary and stability? I have heard that many ECE graduates end up in IT jobs due to lack of core industries-is that true?Would ECE be a better alternative to CSE for core jobs or is it better to stay in EEE? Also between CSE, ECE, and EEE, which has less competition in the job market while still offering good career prospects? Additionally, I want to know which branch is broader, with ample opportunities in both the government and private sectors, especially for core jobs with good pay and stability. base on futuret rends, would it be a wise decision to change my branch, or should I continue with EEE?
Ans: Happy to see that you have asked very logical questions. I can say that, since you are already in Electrical and Electronics Engineering (EEE) at MIT Manipal and have the opportunity to change to CSE, Mathematics and Computing (MnC), or ECE, your decision should be based on:


Your Interests (Core Engineering vs Coding)
Job Market Trends for 2028 and Beyond
Competition & Industry Demand

Future Job Market (2028 & Beyond) for Each Branch
Branch Core Job Scope IT/Software Jobs Govt Jobs Competition Salary Stability
CSE Low (Software Focused) High Limited Very High High but Unstable
MnC Medium (AI/ML, Finance) High Limited High High but Research-Oriented
ECE Medium (VLSI, Chip Design, Telecom, IoT) High Moderate (ISRO, DRDO, PSU) High Medium-High
EEE High (Power, EVs, Automation, Energy, PSU) Moderate High (Railways, NTPC, BHEL, Govt) Low-Medium High & Stable

Should You Switch to CSE, MnC, or ECE?
If You Want Core Engineering Jobs with Stability
Best Option: Stay in EEE

If You Want a Balance Between Core & Software Jobs
Best Option: ECE

If You Want a High-Paying Private Sector Career (But Not Core Engineering)
Best Option: MnC or CSE

Hope this will help you in decision making.

...Read more

Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

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Hi sir I am investing when ever i have money not like in SIP. my most of investments are around 6 L invested in Quant different mutual funds. No a days i can see my all the Quant funds are going down. Im 34 years old female. My plan is 10 years. Can i exit from quant and invest in any some MF rather than getting more loss? Can you please review my portfolian. Do i need to exit from any MF. Since i'm maintaining too many MF. Thanks in advance. Mutual Funds List No' Scheme Name AMC Category Sub-category ISIN 1 DSP Small Cap Direct Plan Growth DSP Mutual Fund Equity Small Cap INF740K01QD1 2 Quant Focused Fund Direct Growth Quant Mutual Fund Equity Focused INF966L01853 3 Parag Parikh Flexi Cap Fund Direct Growth PPFAS Mutual Fund Equity Flexi Cap INF879O01027 4 Mirae Asset ELSS Tax Saver Fund Direct Growth Mirae Asset Mutual Fund Equity ELSS INF769K01DM9 5 JM Flexicap Fund Direct Plan Growth JM Financial Mutual Fund Equity Flexi Cap INF192K01CC7 6 Axis Growth Opportunities Fund Direct Growth Axis Mutual Fund Equity Large & MidCap INF846K01J46 7 Parag Parikh ELSS Tax Saver Fund Direct Growth PPFAS Mutual Fund Equity ELSS INF879O01100 8 Quant Small Cap Fund Direct Plan Growth Quant Mutual Fund Equity Small Cap INF966L01689 9 Canara Robeco Small Cap Fund Direct Growth Canara Robeco Mutual Fund Equity Small Cap INF760K01JC6 10 Motilal Oswal Midcap Fund Direct Growth Motilal Oswal Mutual Fund Equity Mid Cap INF247L01445 11 Nippon India Multi Cap Fund Direct Growth Nippon India Mutual Fund Equity Multi Cap INF204K01XF9 12 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 13 ICICI Prudential Value Discovery Direct Growth ICICI Prudential Mutual Fund Equity Value INF109K012K1 14 Quant Flexi Cap Fund Direct Growth Quant Mutual Fund Equity Flexi Cap INF966L01911 15 Nippon India Small Cap Fund Direct Growth Nippon India Mutual Fund Equity Small Cap INF204K01K15 16 Quant ELSS Tax Saver Fund Direct Growth Quant Mutual Fund Equity ELSS INF966L01986 17 Aditya Birla Sun Life PSU Equity Fund Direct Growth Aditya Birla Sun Life Mutual Fund Equity Sectoral / Thematic INF209KB1O82 18 Quant Mid Cap Fund Direct Growth Quant Mutual Fund Equity Mid Cap INF966L01887 STOCKS LIST 1 APOLLO TYRES-EQ RE 1 2 ASIAN PAINTS EQ 1/ 3 BRITANNIA IND-EQ1/- 4 CG POWER-EQ2/ 5 IRCTCL-EQ2 6 NHPC LIMITED - EQ 7 TATA STEEL-EQ1/ 8 Deepak nitrate 9 LT 10 Narayana Hrudayalaya
Ans: Hello;

6 L worth investment in 18 different funds is spreading it too thin.

You have a time horizon of 10 years but how much corpus you want to accumulate after 10 years kindly clarify?

Also if you can specify the goal for which this investment is aimed at then it will help us to suggest suitably.

I will recommend you strategy to rationalize you MF holdings once you revert on the above points.

Thanks;

...Read more

Milind

Milind Vadjikar  |1136 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Asked by Anonymous - Jan 26, 2025
Money
Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...
Ans: Hello;

Suppose you sell your house and clear your loans and other liabilities but where will you & your family stay?

How much rental per month would be required to get an adequate house on rent?

Please clarify. Based on your input we can advise you suitably.

Thanks;

...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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