Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Jinal

Jinal Mehta  |103 Answers  |Ask -

Financial Planner - Answered on Feb 12, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
... more
shailesh Question by shailesh on Nov 19, 2023Hindi
Listen
Money

my daughter age 24 years old which SIP would be best for long term of 20 thousand /month for direct investment

Ans: You can divide it into 3 parts.
1. Largecap & Midcap
2. Flexicap
3. Small cap
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 01, 2024

Listen
Money
My daughter now 20 year old i want to start sip 25 k p.m. for 25 years please suggest best fund for best return in long term
Ans: When selecting mutual funds for your daughter's SIP investment of 25k per month for 25 years, it's essential to consider various factors to maximize returns over the long term:

Investment Horizon: Since you have a 25-year investment horizon, you can afford to take higher risks and invest in equity-oriented funds that have the potential to deliver superior returns over the long term.

Diversification: Opt for well-diversified equity funds that invest across different sectors and market capitalizations to spread risk. Diversification helps mitigate the impact of volatility and specific sectoral risks.

Fund Performance: Evaluate the historical performance of mutual funds by analyzing their long-term returns relative to their benchmark indices and peers. Choose funds with a consistent track record of outperformance across market cycles.

Fund Manager Expertise: Assess the expertise and experience of the fund managers managing the schemes. A skilled and experienced fund management team is crucial for making informed investment decisions and navigating market volatility effectively.

Expense Ratio: Consider the expense ratio of mutual funds, which directly impacts your overall returns. Lower expense ratio funds tend to provide better net returns to investors over the long term.

Risk Profile: Align the mutual fund selection with your daughter's risk tolerance and investment objectives. Since she is young and has a long investment horizon, you can consider investing in equity funds with a higher risk-return potential.

Regular Review: Periodically review the performance of the selected mutual funds and make necessary adjustments to the portfolio based on changing market conditions, fund performance, and investment goals.

By carefully considering these factors and selecting well-managed, diversified equity funds with a track record of consistent performance, you can potentially maximize returns and achieve your long-term investment objectives for your daughter's future financial goals. It's advisable to consult with a financial advisor to tailor the investment strategy to your specific requirements and risk appetite.

..Read more

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 2024

Money
for long term investment time span 15 to 18 years for grand daughter which SIP to invest can you name the scheme . Amount range 2 to 5 thousand
Ans: Here's a detailed and comprehensive guide on selecting the best SIP investments for your granddaughter's long-term financial goals:

Understanding the Importance of Long-Term Investments
Investing for your granddaughter's future is a wonderful decision.

It ensures her financial security and helps in meeting her educational and other significant expenses.

A long-term investment horizon of 15 to 18 years provides ample time for your investments to grow and compound.

Benefits of SIP for Long-Term Investments
Systematic Investment Plans (SIPs) are an excellent way to invest for long-term goals.

They provide the benefit of rupee cost averaging, reducing the impact of market volatility.

SIPs instill a habit of regular investing, making it easier to accumulate a significant corpus over time.

By investing a fixed amount regularly, you can take advantage of compounding returns.

Factors to Consider While Choosing SIPs
When selecting SIPs, consider the following factors:

Investment Goals: Define clear investment goals for your granddaughter, such as education, marriage, or any other future needs.

Time Horizon: A long-term horizon of 15 to 18 years allows you to take on more equity exposure for higher returns.

Risk Tolerance: Understand your risk tolerance and choose funds that align with your risk profile.

Fund Performance: Look for funds with a consistent performance track record over the years.

Expense Ratio: Lower expense ratios can significantly impact your overall returns over the long term.

Equity Mutual Funds for Long-Term Growth
Equity mutual funds are ideal for long-term investments as they offer higher returns compared to other asset classes.

Consider investing in a mix of large-cap, mid-cap, and small-cap funds for diversified exposure.

Large-cap funds invest in well-established companies with stable growth prospects.

Mid-cap and small-cap funds invest in companies with higher growth potential but may carry more risk.

Benefits of Actively Managed Funds
Actively managed funds are managed by professional fund managers who aim to outperform the market.

They offer better returns compared to index funds in many cases.

Fund managers actively select and manage the portfolio to achieve higher returns.

Disadvantages of Index Funds
Index funds simply replicate market indices and do not aim to outperform the market.

They may not provide optimal returns in the long term, especially in a growing economy like India.

Actively managed funds, on the other hand, have the potential to deliver better returns.

Importance of Diversification
Diversification reduces risk and enhances returns.

Investing in a mix of equity, debt, and hybrid funds ensures a balanced portfolio.

Equity funds provide growth, while debt funds offer stability and lower risk.

SIP Amount and Frequency
For a long-term goal, investing Rs 2,000 to Rs 5,000 per month is a good start.

Set up SIPs in multiple funds to diversify your investments.

Regularly investing a fixed amount ensures disciplined investing.

Evaluating Fund Performance
Regularly review the performance of your SIP investments.

Compare the fund's performance with its benchmark and peers.

Rebalance your portfolio if needed to maintain the desired asset allocation.

Benefits of Regular Funds and Certified Financial Planner (CFP)
Investing through regular funds with the guidance of a CFP adds value.

CFPs provide personalized advice and help in creating a well-diversified portfolio.

They offer professional expertise and help you make informed investment decisions.

Monitoring and Rebalancing
Regularly monitor your SIP investments and review your financial plan.

Market conditions and personal circumstances change over time.

Rebalance your portfolio periodically to maintain the desired asset allocation.

Tax Benefits of SIPs
SIPs in Equity Linked Savings Schemes (ELSS) offer tax benefits under Section 80C of the Income Tax Act.

ELSS funds have a lock-in period of three years and provide both tax savings and long-term growth.

Consider allocating a part of your SIP investments to ELSS funds for tax-efficient investing.

Financial Discipline and Consistency
Financial discipline is key to achieving your long-term goals.

Stick to your SIP investment plan and avoid the temptation to time the market.

Consistent investing will yield significant results over time.

Leveraging Professional Advice
Seek advice from a Certified Financial Planner to create a tailored investment plan.

They provide valuable insights and help you navigate through market complexities.

A CFP helps in aligning your investments with your financial goals.

Avoiding Common Investment Mistakes
Avoid high-risk and speculative investments that promise quick returns.

Don’t chase past performance of funds; instead, focus on long-term potential.

Stay disciplined and stick to your investment plan.

Building a Corpus for Your Granddaughter
Building a significant corpus for your granddaughter requires careful planning and disciplined investing.

Start early and invest regularly to take advantage of compounding returns.

Review and adjust your investments as needed to stay on track with your goals.

Final Insights
Investing for your granddaughter’s future is a noble and rewarding decision.

A well-structured SIP investment plan will help you achieve your financial goals.

Focus on long-term growth, diversification, and regular monitoring.

Stay disciplined and seek professional advice to make informed investment decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 15, 2024

Asked by Anonymous - Oct 14, 2024Hindi
Money
dear sir, I am planning to invest ?5,000 per month for my daughter's education or their marriage expenses, with a timeframe of at least 20 to 25 years in a SIP. Which fund would you recommend for this duration? and is it advisable to open a demat account on her name, she is currently 7 years old?
Ans: You are planning to invest Rs 5,000 per month for your daughter’s education or marriage expenses, with a timeframe of 20 to 25 years. This is a great step towards securing her future. It gives you a long-term horizon to grow your wealth. Let's explore the best way to approach this.

Systematic Investment Plan (SIP) for Long-Term Goals
For a long-term goal like your daughter's education or marriage, SIP is a smart choice. SIPs offer disciplined investing, and the power of compounding can work in your favour over 20-25 years.

Equity Mutual Funds: Since your goal is long-term, equity mutual funds are a good option. They tend to perform better than other investment options over longer durations.

Flexibility of SIP: One of the advantages of SIP is that you can start small and increase the amount later as your income grows. This flexibility ensures that you can stay consistent with your contributions.

Ruled by Market Cycles: Equity mutual funds are subject to market ups and downs. But over a 20-25 year horizon, these fluctuations tend to even out. Historically, equity mutual funds have delivered inflation-beating returns over the long term.

Actively Managed Funds vs Index Funds: Actively managed funds could be a better option than index funds in this case. While index funds track a market index, they might miss out on the ability to outperform the market. Fund managers in actively managed funds can take advantage of market opportunities to generate better returns.

Importance of Diversification
Diversification reduces risk and gives better stability to your portfolio. Over 20 to 25 years, market conditions will vary. A well-diversified portfolio ensures your money grows steadily.

Equity Diversification: You can diversify within equity by investing in a mix of large-cap, mid-cap, and small-cap funds. Large-cap funds are more stable, while mid-cap and small-cap funds have the potential for higher returns but come with higher risk.

Adding Debt Mutual Funds: Adding some portion of debt mutual funds can provide stability, especially as you get closer to your goal. Debt funds are less volatile and can act as a cushion when the equity markets go down.

International Exposure: Some portion of your portfolio can also have international exposure, which adds a layer of diversification across geographies.

Regular vs Direct Funds: What Should You Choose?
If you have heard about direct mutual funds, it may seem tempting because they offer lower expense ratios. But direct funds are not always the best option unless you are an experienced investor who can manage everything on your own.

Direct Funds Drawbacks: Investing in direct funds means you need to track the market yourself. You will have to decide when to buy, switch or exit. It can be time-consuming and requires knowledge of market trends. There is no professional guidance or hand-holding.

Benefit of Investing Through an MFD with CFP Credential: Instead, choosing a regular plan through a certified financial planner (CFP) ensures you get expert advice. Your CFP will track the market for you, rebalance your portfolio when needed, and help you align it with your financial goals. The cost of a regular fund might be slightly higher due to the expense ratio, but the guidance and personalised planning are worth it.

Tax Implications You Should Know
When investing for such a long period, it's important to consider the tax implications as well.

Capital Gains Tax: In equity mutual funds, long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%. It’s advisable to plan your withdrawals smartly, keeping these tax rates in mind.

Debt Funds Taxation: In debt mutual funds, both LTCG and STCG are taxed as per your income tax slab. Debt funds are more tax-efficient than FDs, especially over the long term.

Should You Open a Demat Account for Your Daughter?
Now, let’s address the question of whether it’s advisable to open a Demat account in your daughter’s name.

Demat Account for Minors: Technically, you can open a Demat account in your daughter's name even though she is 7 years old. However, as a minor, she won't have any control over the account until she turns 18. You, as the guardian, will have to manage it on her behalf.

Practicality of Opening a Demat Account: It’s more practical to invest in your own name and earmark these funds for your daughter's education or marriage. You can always transfer the money or investments to her when needed. Opening a Demat account at this stage might add unnecessary complexity, especially when you can manage her investments easily from your own account.

Ownership Considerations: While it may seem like a good idea to keep her investments separate, the tax liabilities will still be on you until she turns 18. Managing investments from your account simplifies the process and keeps everything in one place.

Keeping Inflation in Mind
Inflation is an important factor to consider when investing for long-term goals like education or marriage. Costs, especially in education, rise significantly over time. It’s crucial to choose investment options that can give you inflation-beating returns.

Equity for Higher Returns: Equity mutual funds can help beat inflation in the long term. Over a 20-25 year period, equity investments have the potential to generate returns higher than inflation.

Regular Review: While you don’t need to check your investments every day, it's wise to review them annually or semi-annually. This ensures that your investments are on track to meet your goals, and you can make adjustments if needed.

Don’t Depend on Insurance-Based Investment Plans
It’s common for parents to be attracted to investment-cum-insurance policies for their children's future. However, these policies often give lower returns compared to mutual funds.

Investment-Cum-Insurance Policies: Such policies may promise assured returns, but the returns are often quite low. It is better to keep your insurance and investment separate.

Consider Surrendering: If you currently hold any investment-cum-insurance policies, you might want to consider surrendering them and reinvesting the proceeds into mutual funds. A dedicated mutual fund portfolio will grow much better over the long term.

Final Insights
Your decision to invest Rs 5,000 per month in SIP for your daughter's future is a wise one. With a 20-25 year horizon, equity mutual funds offer you the best opportunity for growth. Actively managed funds, diversified across large-cap, mid-cap, and small-cap, provide stability and the potential for higher returns.

Opening a Demat account in your daughter’s name is not necessary at this stage. Managing her investments from your account is more practical, and you can transfer the funds to her when needed.

Keep insurance and investments separate. Focus on long-term growth through mutual funds, and consider investing through a certified financial planner (CFP). They can guide you to ensure your portfolio stays on track for your daughter’s future education or marriage expenses.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Nitin

Nitin Narkhede  |93 Answers  |Ask -

MF, PF Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 14, 2024Hindi
Listen
Money
dear sir, I am planning to invest Rs. 5,000 per month for my daughter's education or their marriage expenses, with a timeframe of at least 20 to 25 years in a SIP. Which fund would you recommend for this duration? and is it advisable to open a demat account on her name, she is currently 7 years old?
Ans: For your daughter’s education or marriage expenses, with a 20-25-year horizon, investing Rs. 5,000 per month in equity mutual funds via a SIP is a good approach. Long-term investments benefit from the power of compounding and have the potential for higher returns in equity markets.
Consider the following types of funds: 1. Flexi-cap Funds- These invest in companies of various sizes, balancing risk and returns. Funds like Parag Parikh Flexi Cap or UTI Flexi Cap are solid choices. 2. Large Cap Funds- These focus on established companies and offer stability. Examples include SBI Blue-chip and Axis Blue-chip Fund. 3. Child-Centric Funds- These are tailored for long-term educational goals, such as the HDFC Children’s Gift Fund.
Opening a Demat account in your daughter’s name isn't necessary. You can hold investments in your name under a minor account, and when she turns 18, the account can be transferred to her. Investing through mutual fund SIPs is a simple, efficient method that doesn't require a Demat account.
This strategy will help you build a substantial corpus for your daughter’s future needs over the next 20-25 years by reviewing your investments periodically.
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

..Read more

Latest Questions
Nayagam P

Nayagam P P  |8853 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Career
I have joined SRM Ramapuram CSE with though the fees is too high ( 4.65L ) but people are hating SRM too much which is making me rethink my decision , will I get a good ROI & good clg exposure for debates public speaking internships & so on ?
Ans: Sameera, SRM Institute of Science and Technology, Ramapuram, holds NAAC A++ accreditation and NBA accreditation for its Computer Science & Engineering programme through 2026, ensuring adherence to national quality standards. The CSE department houses over 47 specialized labs in AI/ML, cybersecurity and cloud computing, supported by PhD-qualified faculty and an International Advisory Board with members from institutions like MIT and Cambridge, which guides curriculum development. Recent placement drives recorded marquee recruiters such as Amazon, Adobe, Morgan Stanley and JP Morgan, with 46 super-dream offers and 507 dream offers for the CSE Class of 2025, reflecting a 75–80% placement rate in core roles for CSE graduates. Student life features active debate and MUN fests—over 165 debate participants in RMUN Debate Fest ’24—and a Google Developer Student Club with hackathons, tech talks and solution challenges, alongside the IIE Innovation, Incubation & Entrepreneurship Centre that has incubated 46 student startups since 2019. The ?4.65 L annual fee can strain budgets, and large batch sizes heighten competition for top recruiters; to mitigate these, students should engage early in campus clubs, pursue internships via the Training & Placement Cell, undertake personal coding and research projects, and leverage mentorship programmes to build standout profiles.

Recommendation:
Enrolling in SRM Ramapuram’s CSE is likely to yield positive ROI through strong accreditation, reputable recruiters and vibrant extracurricular platforms; proactively offset large-batch competition by securing summer internships, contributing to student-driven innovation centres and enhancing soft skills via debate and public-speaking workshops for maximal exposure and employability. All the BEST for Admission & a Prosperous Future!

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
Hi, I am 41, salaried with 2 kids (elder one in 8th standard and younger one in Nursery) and earning 2.5 Lakh per month from private IT job. I have 4 dependents including spouse and mother. I have approx. 70 lakhs savings so far in different savings account, but no FD. Around 33 Lakhs in EPF and approx 10 L in PPF (1.5 LPA). A 100sq yard empty plot in rural area worth 15 Lakh (approx 12 km away from current address in Faridabad and school bus facility is not available there). I have paternal small agriculture land in Meerut, approx. 900 sq yard. No other savings or assets. I wanted to buy residential property in urban area but it seems out of reach now and I do not see any value in spending all my savings in small 2 bhk apartment. Here are my monthly expenses - 28K rent related - 20k school fee and tutions - 15k monthly grocery - 2k internet (for tv and home office) - 10k car petrol (3 days weekly office travel to Noida- metro takes additional half an hour to reach office due to indirect connectivity) - around 30k in quarter for family entertainment and other purchases - giving 6K every month to wife and mother for their personal expenses (total 12 k) - additional mediclaim of 27k per month, 50 L SI - free company mediclaim of 10L SI - free company insurance of 50L , but no person insurance I am interested in buying agricultural land of 30 Lakh in my father's village but my lunch has not been great in property investments so far (no gain, just loss). So, I am confused and just trying to save money in bank accounts for my kids. Shall I buy apartment or it's fine to stay in rental property for long time? For unplanned retirement, I can get my rural plot constructed for emergency, right? I believe investment in agriculture land will be better rather than buying apartment or something else. But I get this thought from time to time that I am on a rented property, not my own. Then I think its better to do FD of 70 Lakh and enjoy the interest for easy worry free life. Please share some advise what shall I do to save money safely and wisely.
Ans: You are 41, earning Rs?2.5?lakhs per month with spouse, mother, and two school-aged children. You have Rs?70?lakhs in savings, plus Rs?43?lakhs in EPF/PPF. You also own rural plots but no urban home. You have recurring rent and family expenses. Let’s take a clear 360?degree look at your situation and chart a reliable path forward.

? Clarify Your Goals and Timelines
– Monthly rent, kids’ education, retirement, and own home are key goals.
– Rank them by importance and by when funds are needed.
– Own home may take 5–7 years; education is nearer.

A clear goal list helps choose right investments and timeline.

? Analyse Monthly Cash Flow
– Rent: Rs?28k
– School & tuition: Rs?20k
– Groceries: Rs?15k
– Internet: Rs?2k
– Petrol: Rs?10k
– Entertainment: ~Rs?10k
– Personal allowances: Rs?12k
– Mediclaim premium: Rs?27k

Total: ~Rs?1.24?lakhs (excludes utilities/savings).

This leaves ~Rs?1.26?lakhs per month for investment, savings, and discretionary spending.

? Emergency Fund Status
– You hold Rs?70?lakhs, but none in liquid safety.
– Ideal emergency buffer is 6–12 months of household expenses.
– That is approx Rs?8–10?lakhs.
– Keep this in liquid or ultra?short term mutual funds.

? Deploy Savings Efficiently
– Don’t leave Rs?70?lakhs idle in savings; returns are very low.
– Distribute across safety, medium, and growth buckets:

Safety: Rs?10?lakhs in liquid funds

Medium-term: Rs?15?lakhs in short/mid?duration debt funds

Long-term growth: Remaining Rs?45?lakhs into equity-oriented mutual funds

This ensures extended stability, goal funding, and growth.

? Children’s Education Planning
– Elder is in 8th grade; younger is in nursery.
– Education expenses escalate in higher studies.
– Estimate combined future costs in the next 5–10 years.
– Create dedicated monthly SIPs for each child.

Child?1 goal requires medium?term growth

Child?2 goal allows longer horizon (10–12 years)

Use actively managed equity funds so fund managers adjust with market cycles.

? Own Home vs Renting
– Urban home is out of reach now; better to continue renting.
– Renting gives flexibility, less maintenance burden.
– Apartment purchase may overextend your savings and impact education/retirement.

Renting stays fine until you have 30–40% home cost in savings, plus surplus for education.

? Estate and Construction Plan
– You mentioned constructing on rural plot as emergency fallback.
– Building on rural land may draw permission and utility challenges.
– Also, it may tie up capital and reduce liquidity.

Better to rely on liquid savings for emergency housing needs.

? Agricultural Land Investment
– Farming land may provide future value but no income now.
– It also isn’t liquid or usable immediately.
– Income from land is uncertain.

Its value isn’t clear and is hard to monetize. It's better held alongside diversified financial investments.

? Asset Allocation for Growth
– Equity funds offer potential to beat inflation.
– Debt funds offer stability for medium-term goals.
– EPF/PPF are safe pillars.

Your mix now: 45% growth (equity), 35% stability (debt and PPF/EPF), 20% liquidity.

Rebalance each year towards target mix.

? Importance of Actively Managed Funds
– Index funds track markets rigidly.
– They can underperform in downturns or miss themes.
– Actively managed funds adapt sector exposures.
– Managers can protect downside and pursue growth themes.

Especially useful when funding education, retirement, or home purchase.

? Direct Funds vs Regular Funds
– Direct funds save small fees but give zero guidance.
– Regular funds via Certified Financial Planner provide expert support, emotional discipline, and rebalancing advice.
– This guidance is valuable over decades.

? EPF and PPF Overview
– EPF continues via salary deductions; it's safe and grows.
– PPF offers tax?free return and can complement retirement corpus.
– Let EPF and PPF run until maturity.
– Use rising savings (house, investment) to balance with more equity.

? Retirement Planning Next Steps
– You still have ~19 years until retirement at 60.
– Required corpus must support spouse and children during and after your life.
– Start separate SIP of Rs?25–30k monthly into diversified equity funds.
– This stream builds a long?term corpus for retirement.

? Tax Planning Strategy
– EPF contributions offer 80C deduction.
– PPF contributions also qualify under 80C.
– SIP in ELSS (if used) gives tax deduction but has 3?year lock?in.
– Equity withdrawals: LTCG above Rs 1.25 lakh taxed at 12.5%; STCG at 20%.
– Debt fund gains are taxed per your slab.

Plan investment and withdrawal timing to optimise taxes per year.

? Insurance Coverage Check
– Company offers free mediclaim 50L and life insurance 50L.
– You also spend Rs?27k monthly on additional cover.
– Re-evaluate premium if overlap exists.
– Take a separate pure term plan for yourself of 50–75L.
– Ensure your family has financial protection beyond employer policies.

? Monitoring and Review
– Schedule annual financial check-ins.
– Reassess goals, cash flow, investments, and insurance.
– Adjust contributions and asset allocations with life changes.
– A CFP will guide and correct behavioural biases.

? What to Avoid Now
– Avoid buying urban property now; it can stress your finances.
– Stay away from speculative farmland purchase.
– Avoid fixed deposits for large sums; returns are low.
– Don’t chase short-term stock tips or side income schemes.

Stick to a disciplined savings and investment approach.

? Summary of Key Actions
– Keep Rs?10?lakhs liquid as emergency fund.
– Allocate Rs?15?lakhs in debt funds for medium goals.
– Invest Rs?45?lakhs via SIPs in equity funds for long goals.
– Start separate SIPs:

Child education

Home purchase

Retirement corpus (~Rs?25–30k monthly)
– Buy individual term life cover and optimise mediclaim.
– Review portfolio every year with a CFP.

This gives goal clarity, financial safety, and growth potential.

? Finally
– You have stable income and significant savings.
– Owning a home is not mandatory now; renting is fine.
– Keep farmland, but don’t invest more.
– Financial assets are more flexible, safe and growth-oriented.
– Build multiple SIPs aligned to specific goals.
– Use actively managed, regular plan mutual funds.
– Protect yourself and dependents with term and health cover.
– Monitor and adjust the plan every year.

This 360?degree strategy helps your family stay secure and grow wealth.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Money
Hey, I m 43 yrs old now, working as a freelancer earning around 2L per month, but don't know how long it will work and now not feeling to join any Job, I have a daughter and a son 12 and 6 yrs old respectively. Currently I am holding around 90L in stocks 5.5L in mutual fund with SIP of 50K per month. I own a house, which is debt free Also own a office space and a studio apartment which are rented out and getting around 33K from rent per month.(Both are debt free) Life Policies For LIC policy paying from last 12 years around 3.6L per annum need to for another 10 yrs I think so Hdfc life paid 2.5 per annum for 5 years and waiting for maturity. SBI life paid 1.5 per annum for 5 years and now waiting for maturity. Aditya Birla paying 25k from last 12 years need to pay it for another 18 years Bought a term life plan for 1.75cr and paying 5k per month. Currently I have a car loan and a loan against policy paying around 70K as a EMI per month it will get completed in next 2.5 years. Now my goal is to get 3L per month after 5-6 years. Please let me know how should I achieve this. Thanks
Ans: Your earnings, assets, and goals show you are disciplined and proactive. Let us look at your situation in depth—covering all angles and offering insights that shape a solid path forward.

? Current Financial Snapshot
– Age 43, freelancer, earning around Rs.?2 lakh per month.
– Family: Daughter (12) and son (6).
– Holding Rs.?90 lakh in direct equity stocks.
– Mutual fund investments worth Rs.?5.5 lakh.
– SIP of Rs.?50,000 per month into mutual funds.
– Owns a debt?free home, office space, and studio apartment.
– Rental income of Rs.?33,000 per month.

? Insurance and Loan Overview
– LIC policy premium Rs.?3.6 lakh per annum, continues for 10 more years.
– HDFC Life policy premium Rs.?2.5 lakh per annum, 5 years left.
– SBI Life policy premium Rs.?1.5 lakh per annum, 5 years left.
– Aditya Birla policy premium Rs.?25,000 per annum, 18 years remaining.
– Term life insurance cover Rs.?1.75 crore, premium Rs.?5,000 per month.
– Car loan and loan against policy: EMI Rs.?70,000 per month, ending in 2.5 years.

Your goals: To receive Rs.?3 lakh per month in income after 5–6 years. Let us break down your plan with professional insight.

? Strengths in Your Setup
– Debt?free real estate assets provide passive income and safety.
– You have strong equity holdings for growth potential.
– SIP of Rs.?50k monthly shows systematic investing behaviour.
– Term insurance provides robust life protection.
– Rental income adds stable, recurring cash flow.
– You have clear income goals and timeframe.

Your structure is built on robust foundations. You have the potential for reliable financial freedom.

? Key Challenges to Address
– High exposure to direct stocks (Rs.?90 lakh) increases risk and requires active management.
– Low mutual fund base relative to equity exposure may limit diversification benefits.
– Insurance?linked savings policies with heavy premiums limit fund allocation flexibility.
– EMI of Rs.?70k is delaying capital growth until it ends.
– Freelance income can vary and may not last indefinitely.
– You need to plan for higher income needs in 5–6 years to reach Rs.?3 lakh monthly.

? Goal Definition: Rs.?3 Lakh Monthly Income
– You plan to retire or reduce activity by age 48–49.
– Your target is Rs.?3 lakh monthly sustainable income.
– Current passive income: Rs.?33k (rent) + planned SIP/withdrawal.
– Gap: You need about Rs.?2.7 lakh extra per month in 5–6 years.

To achieve this, you need to build a corpus that can sustainably generate Rs.?32.4 lakh per year. Assuming a safe withdrawal rate near 4–5%, you need a corpus of Rs.?6.5–8 crore by then.

? Fund Allocation Strategy – Balancing Growth and Stability
You need to grow your portfolio significantly while managing risk.

Increase mutual fund investments:
– Gradually rebalance direct stocks into actively managed mutual funds, including:
Large?cap, flexi?cap, multi?asset, balanced advantage.
– Avoid index funds—they cannot protect in market downturns.
– Active funds help adjust allocation, sector mix, and volatility.

Step up your SIP:
– Continue Rs.?50k monthly SIP.
– Each year increase by 10–15% to offset inflation and build corpus faster.

Use car/policy loan EMI savings well:
– When EMI ends in 2.5 years, redirect Rs.?70k monthly to SIPs or discretionary debt.

? Mutual Fund Selection – Validate and Simplify
You hold Rs.?5.5 lakh in mutual funds today. This needs scale and proper distribution.

– Keep only 5–6 high?conviction funds.
– Choose a mix of diversified equity and hybrid funds.
– Balanced advantage funds provide equity exposure with bond protection.
– Avoid sector/thematic funds. They are risky and reduce diversification.
– Continue via regular funds through MFD + CFP‍ for guidance and monitoring.

If any fund underperforms for more than two years, consider switching.
But do not stop SIP during a temporary correction.

? Equity Stocks – Risk Management Needs
Your equity exposure is strong but concentrated in direct holdings.

– Review top 20 holdings for quality, weight, and sector risk.
– If concentration is high in volatile sectors, rebalance into mutual funds.
– Use staggered selling to minimise capital gains tax and market impact.
– LTCG on equity above Rs.?1.25 lakh per year is taxed at 12.5%.
– STCG is taxed at 20%.

Keep direct stocks only if you can track performance and rebalance every year. Otherwise, mutual funds offer effective diversification.

? EMI Impact and Post?Loan Strategy
Your car and policy loan EMI of Rs.?70k monthly ends in 2.5 years.

Once EMI ends:

– Reinvest Rs.?70k monthly into your SIP basket.
– This alone can generate Rs.?2.5–3 crore over 10 years at consistent returns.
– Combined with stepped-up SIP, this positions corpus well for Rs.?3 lakh goal.

Ensure no immediate "lifestyle" spend after EMI ends. Redirect to wealth creation.

? Insurance?Linked Plans – Reevaluate and Reallocate
You hold multiple insurance investment policies (LIC, HDFC Life, SBI, Aditya Birla).

Suggestion:

– These plans give low net returns and lock-in.
– Since you already have term cover and health insurance, these are redundant.
– Consider surrendering them, if surrender value is acceptable.
– Use the freed-up premiums to invest in mutual funds for faster growth.

You need capital growth now. These insurance plans may limit you.

? Income Generation – Building a Sustainable Yield
Rental income of Rs.?33k is stable. But major income must come from investments.

In 5–6 years:

– Assume rental stays Rs.?33k/month (no growth).
– Monthly SIP (with step-ups) and corpus withdrawal/SWP could add Rs.?2 lakh.
– This helps reach Rs.?3 lakh goal.

Maintain a balanced asset allocation that generates both growth and yield.
Hybrid funds will provide dividends and capital appreciation.

? Emergency Fund and Liquidity Cushion
Your freelance income may fluctuate. Maintain buffer liquidity.

– Keep Rs.?6–8 lakh in ultra-short duration or liquid fund.
– Doesn’t earn much, but provides stability.
– Don’t use direct savings account for this.

This fund covers 3–4 months of expenses and cushions income dips.

? Child Education and Family Planning
You have two children. Plan their education separately.

– Son (12) needs funds in 6–8 years for higher studies.
– Daughter (6) needs funds in 12–15 years.
– Start two SIPs: one for each child’s education, separate from retirement SIP.
– Prefer a mix of flexi?cap and conservative hybrid funds.
– Do not dip into this fund for retirement or emergencies.

Separate goals, clear tracking.

? Inflation and Cash Flow Management
Current Rs.?3 lakh goal is good. But inflation will increase costs over time.

– Assume 6% inflation rate. Your target income may reach Rs.?5 lakh per month in 20 years.
– Continue SIP step?ups by at least 10–12% yearly.
– Rebalance portfolio every year with a Certified Financial Planner.
– Monitor healthcare costs as they rise faster than inflation.

Inflation diminishes real purchasing power. Plan accordingly.

? Freelance Income Risk – Insurance and Alternate Sources
Your income is freelance?based and variable.

– Consider income protection insurance (disability/critical illness).
– This protects you if you cannot work for extended periods.
– Consider building a small side income:

Online teaching, consulting, content writing

Skill monetisation in digital or workshops

A fallback income adds stability and financial freedom.

? Healthcare and Term Insurance Adequacy
You have term and multiple insurance covers. Check adequacy.

– Health insurance may need top-up to Rs.?10 lakh or more.
– Term cover of Rs.?1.75 crore is good. Review after policy-linked savings are surrendered.
– Consider raising cover if obligations increase post retirement.

Insurance secures your family’s future and gives financial peace.

? Regular Monitoring and Review Schedule
Your financial world will change. You must adjust accordingly.

– Set review meetings with a Certified Financial Planner every 6 months.
– Track these:

Portfolio returns and allocation

SIP performance and step-ups

Insurance needs

Cash flow and EMIs

Children’s education savings

Freelance income health

This discipline prevents drift and ensures you stay on track toward Rs.?3 lakh goal.

? Why Active Management is Crucial
Even if you think index funds are easy, they lack human oversight.

– Index funds blindly follow markets and can't reduce exposure in downturns.
– Actively managed funds adjust portfolio based on market conditions.
– They help manage downside risk—especially in retirement and goal?withdrawal phase.
– In long-term investment, active funds can deliver better risk?adjusted returns.
– Regular funds via MFD with CFP support guide you through market cycles.

Don’t be tempted by low-cost index funds when your goals require protection and discipline.

? Finally
– Your current position is strong, with assets and income.
– But risks include concentrated equity, heavy insurance savings, and income variability.
– By redirecting insurance savings toward mutual funds, you build faster.
– By stepping up SIP and reallocating EMI savings, you will reach your income goal.
– Maintain liquidity, child education funds, and insurance adequacy.
– Use actively managed and balanced funds.
– Review regularly with your Certified Financial Planner.
– Avoid fixed or complex investment schemes and farmland pitches.
– Build a side income to cushion freelance income risk.
– With discipline and monthly review, achieving Rs.?3 lakh per month in five years is realistic.

Your journey requires steady steps. You are well poised to achieve it with proper structure and support.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Money
Sir I am now 52 years old.My sip start from this years rs 6000 per month and I have swp of 3lac.I invest 1cr in kvp of post office.Moreover my two ppf are going to mature nxt year.Now what should be my investment goal and what should I do after maturity of ppf
Ans: You are 52 years old. You have started SIP of Rs 6,000 per month. You have a SWP of Rs 3 lakhs. You have invested Rs 1 crore in KVP of post office. You also have two PPF accounts maturing next year. You are moving in the right direction. Still, there is scope for better planning. Let us build a 360-degree plan.

? Understanding Your Current Financial Picture

– You are in the pre-retirement stage now.
– Retirement could be in the next 8 to 10 years.
– You have started SIP of Rs 6,000 per month.
– You hold a SWP of Rs 3 lakhs.
– Rs 1 crore is locked in KVP, which is a fixed return scheme.
– Two PPF accounts are maturing next year.

You have good financial base. But asset allocation needs balancing.
Let’s review your steps ahead carefully.

? Define Your Financial Goals Clearly

– First, identify your life goals from now to retirement.
– Most important will be retirement corpus creation.
– Second may be healthcare planning.
– Third could be child support or legacy planning.

If these goals are not written down yet, please do it now.
Each goal should have timeline and estimated need.

That helps you allocate funds better after PPF maturity.

? Emergency Fund is Always First

– Ensure that you have at least one year’s expenses kept aside.
– Keep it in liquid mutual funds or short-term options.
– Avoid touching long-term investments for sudden needs.

If not done yet, use a portion of PPF maturity to build it.

? Review the Rs 1 Crore KVP Investment

– KVP gives fixed return but no flexibility.
– You will have to wait till maturity to access funds.
– It is safe but returns barely beat inflation.

If you still have 5+ years to maturity, no issue.
But plan liquidity outside this for other needs.

Don’t depend on KVP for short or medium-term goals.

? Smart Use of Upcoming PPF Maturity

– PPF is a great debt product. It gives tax-free returns.
– Maturity of two accounts gives you a good opportunity now.

Avoid spending it casually. Don’t keep it idle in savings account.

Use the maturity amount as per these options:
– Allocate a portion for emergency fund if not yet created.
– Set aside part for upcoming 2–3-year needs in debt mutual funds.
– Invest balance in equity-oriented mutual funds for retirement.

Equity funds help fight inflation over 8–10 years.
You already started Rs 6,000 SIP. That is good.

Now you can boost this using PPF maturity money as lump sum.

Split this amount across 12–18 months using STP (Systematic Transfer Plan).
Don’t invest full lump sum in equity fund in one shot.

? Don’t Mix Insurance with Investment

– If you hold LIC endowment or ULIP, review carefully.
– If returns are below 5% and you don’t need cover, surrender them.

Reinvest that in mutual funds for long-term goals.
Pure term insurance and mutual fund combo is best.

You need protection but not with poor returns.

? Continue and Boost Mutual Fund SIPs

– Rs 6,000 SIP is a good start.
– But it may not be enough for retirement.
– Increase SIP every year by 10–15% if possible.

Also, once PPF matures, start new SIPs with that money.
Use actively managed equity mutual funds.

Avoid index funds. They follow the index blindly.

Index funds can’t reduce risk when market falls.
Actively managed funds give flexibility to move to better sectors.
They adjust portfolio as per market condition.

Also, avoid direct plans unless you can monitor it fully yourself.

Direct funds don’t give advice or reviews.
Better to go with regular plans through Certified Financial Planner.
This gives proper tracking and long-term guidance.

? Plan for Retirement Systematically

– You are 52. So you may have 8 years before retirement.
– It is not too late. But you must act fast.

Estimate how much you need post-retirement per month.
Factor in inflation. Your Rs 50,000 now may need Rs 1 lakh later.

You must build a corpus that can support 25–30 years after retirement.

Use mutual funds for this. A mix of equity and hybrid funds can help.
Increase SIPs. Reinvest maturity money wisely.
Review your plan every year with a Certified Financial Planner.

? Don’t Depend Only on Fixed Instruments

– Many people in their 50s prefer fixed deposits or post office schemes.
– These give safety but don’t beat inflation.

Over 20–30 years post-retirement, inflation eats value.
So you need growth along with safety.

That’s why mutual funds are needed now.
Especially equity-oriented and hybrid mutual funds.

They help grow your wealth and still give flexibility.

? Use SWP Strategy Carefully

– You have a SWP of Rs 3 lakhs.
– Understand why and how it is being used.

If it is being withdrawn from mutual fund, track tax impact.
Use only for planned needs. Don’t use SWP as regular income unless needed.

Instead, reinvest if it’s not being spent. Let it grow further.

? Tax Planning is Important

– Your PPF maturity is tax-free. That’s a plus.
– Mutual fund redemptions can be taxed.

For equity mutual funds:
– LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.

For debt funds, all gains are taxed as per income slab.
So plan withdrawals smartly. Avoid sudden full redemptions.

Split withdrawals across years to reduce tax burden.

? Health Cover and Long-Term Care

– At this age, health planning is very important.
– Check if you have personal health insurance.

Even if you have office cover, take personal plan.
Also consider top-up policy for high expenses.

Medical inflation is rising. Don't depend only on savings.
Health cover is protection against draining your investments.

? Estate Planning Must Start Now

– Create your Will. Mention all assets and beneficiaries.
– Keep all documents organised and updated.

This avoids legal issues later for family.
It brings peace of mind for you also.

Also consider nomination updates for bank, MF, and insurance.

? What Not to Do Now

– Don’t invest in real estate now.
– It locks your money and gives poor return.
– It needs maintenance and is not liquid.

Also, avoid taking new loans at this stage.
Avoid risky stocks or fancy products.

Stick to mutual funds with proven track record.

? Regular Monitoring and Review

– Set one day every year to review your plan.
– Track SIPs, maturity amounts, tax status, and goal progress.

Discuss with Certified Financial Planner regularly.
Markets change. Life goals shift. Review keeps your plan relevant.

Don’t assume everything will work on autopilot.
Involvement brings better results.

? Finally

– You are in the crucial decade before retirement.
– Decisions made now will define your retired life.

Use your PPF maturity wisely.
Avoid keeping money idle or in low-return options.

Balance between safety and growth is important now.
Continue SIPs. Increase amount gradually.
Avoid index and direct funds.
Use regular mutual funds via Certified Financial Planner.

Don't rush. But don’t delay either.
Start building your post-retirement wealth seriously now.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Nayagam P

Nayagam P P  |8853 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Career
Hi Sir, I got 93%ile in MHT CET and 83%ile in JEE mains under general category. I am looking forward for addmission for CS in Pune. Which college can I get with good placements and packages?
Ans: With a 93rd percentile in MHT-CET (General-Home State) and an 83rd percentile in JEE Main, you have assured admission prospects into these fifteen reputable Pune institutes for B.Tech in Computer Science Engineering. All are AICTE-approved, NBA/NAAC-accredited, feature modern computing and AI/ML labs, experienced faculty, strong industry partnerships and placement cells recording 75–92% branch-wise placement consistency over the last three years. MIT World Peace University, Kothrud, Pune. AISSMS College of Engineering, Shivajinagar, Pune. Pimpri Chinchwad College of Engineering, Pimpri, Pune. Dr. D.Y. Patil Institute of Technology, Akurdi, Pune. Vishwakarma Institute of Information Technology, Bibwewadi, Pune. Sinhgad College of Engineering, Vadgaon, Pune. Pune Vidyarthi Griha’s College of Engineering, Pune. JSPM Rajarshi Shahu College of Engineering, Tathawade, Pune. MIT Academy of Engineering, Alandi, Pune. Indira College of Engineering and Management, Pune. Bharati Vidyapeeth College of Engineering, Lavale, Pune. Ajeenkya DY Patil School of Engineering, Lohegaon, Pune. Army Institute of Technology, Dighi, Pune. Cummins College of Engineering for Women, Pune. Symbiosis Institute of Technology, Lavale, Pune.

recommendation
MIT World Peace University, Kothrud, Pune stands out for its multidisciplinary CSE curriculum, dedicated AI/ML labs and consistent 90% placement rate. AISSMS College of Engineering, Shivajinagar, Pune offers a strong urban campus, robust industry moUs and 88% placement consistency. Pimpri Chinchwad College of Engineering, Pimpri, Pune provides reliable admissions, extensive recruiter engagement and modern computing infrastructure. Dr. D.Y. Patil Institute of Technology, Akurdi, Pune delivers solid placement support and specialized software and hardware labs. Vishwakarma Institute of Information Technology, Bibwewadi, Pune merits consideration for its focused CSE pedagogy and 85% placement record. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | 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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x