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Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 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 - Dec 28, 2023Hindi
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Hi Dev, i am looking to build a retirement corpus of around 10 cr. and have started investing from the last few months in mutual funds. My age is 41 years and looking to retire by 60. I am doing a monthly SIP of about 80k in the below mutual funds and aim to step up at 10% every year: 1. Hdfc flexi cap - 15k 2. Parag Parekh flexi cap - 15k. 3. Nippon india large cap fund - 10k 4. Nippon india growth fund - 10k 5. SBI magnum mid cap fund - 5k 6. Hdfc micap oppurtunities fund - 5k 7. Nippon india small cap fund - 20k I have a moderate to high risk appetite with an investment horizon of about 20 yrs. Please advise if my investments are in the correct funds or if any changes are needed. Thanks

Ans: Constructing a Robust Mutual Fund Portfolio for Retirement Planning

Assessment of Current Portfolio:

Your investment strategy reflects a proactive approach towards building a substantial retirement corpus. Diversifying across different mutual fund categories is a prudent move considering your moderate to high risk appetite.

Evaluation of Fund Selection:

Flexi Cap Funds:

HDFC Flexi Cap and Parag Parikh Flexi Cap are suitable choices offering flexibility to invest across market capitalizations.
These funds capitalize on growth opportunities across sectors, enhancing portfolio diversification.
Large Cap Funds:

Nippon India Large Cap Fund provides exposure to well-established companies with stable growth prospects.
It adds stability to your portfolio while capturing potential gains from large-cap stocks.
Growth Funds:

Nippon India Growth Fund focuses on companies with strong growth potential across sectors and market capitalizations.
It complements your investment strategy by targeting capital appreciation over the long term.
Mid and Small Cap Funds:

SBI Magnum Mid Cap Fund, HDFC Mid Cap Opportunities Fund, and Nippon India Small Cap Fund offer exposure to mid and small-cap segments.
These funds have the potential to deliver higher returns but come with higher volatility, suitable for your risk appetite and long investment horizon.
Assessing Investment Strategy:

SIP Amount and Step-up Approach:

Your current SIP allocation of Rs. 80,000 is substantial and aligns well with your goal of building a retirement corpus of Rs. 10 crore.
Implementing a step-up approach at 10% annually enhances your savings rate, accelerating wealth accumulation over time.
Investment Horizon and Risk Appetite:

With a moderate to high risk appetite and a 20-year investment horizon, your portfolio is appropriately positioned to withstand market volatility and capitalize on long-term growth opportunities.
Regular monitoring and periodic rebalancing will ensure alignment with your changing financial goals and risk tolerance.
Recommendations for Portfolio Optimization:

Review and Rebalance:

Periodically review your portfolio's performance and rebalance asset allocation based on changing market conditions and investment objectives.
Consider increasing exposure to sectors or funds showing promising growth prospects while reducing allocation to underperforming segments.
Continued Diversification:

Explore opportunities to further diversify your portfolio by adding exposure to thematic funds or sectors showing strong growth potential.
Maintain a balanced mix of equity funds across market capitalizations to mitigate concentration risk.
Conclusion:

Your investment strategy demonstrates a proactive approach towards achieving your retirement goal. By diversifying across mutual fund categories and implementing a systematic investment plan with a step-up approach, you are well-positioned to accumulate a substantial corpus over the next two decades.

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  |9456 Answers  |Ask -

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

Asked by Anonymous - Dec 28, 2023Hindi
Money
Hi Samraat, i am looking to build a retirement corpus of around 5 cr. and have started investing from the last few months in mutual funds. I am doing a monthly SIP of about 80k in the below mutual funds: 1. Hdfc flexi cap - 15k 2. Parag Parekh flexi cap - 15 k 3. Nippon india large cap fund - 10k 4. Nippon india growth fund - 10k 5. SBI magnum mid cap fund - 5k 6. Hdfc micap oppurtunities fund - 5k 7. Nippon india small cap fund - 20k I have a moderate to high risk appetite with an investment horizon of about 15 yrs. Please advise if my advise if my investments are in the correct funds or do i need to update my portfolio.
Ans: Hi Samraat,

You've taken a commendable step towards building a retirement corpus by investing in mutual funds through SIPs. Your approach shows foresight and discipline, both crucial for long-term financial success.

Assessing Your Current Portfolio
Your portfolio consists of a mix of large cap, mid cap, and small cap funds. This diversification can potentially offer a balance between risk and return, aligning with your moderate to high risk appetite.

Flexi Cap Funds: Investing Rs 30,000 in flexi cap funds offers flexibility. These funds can switch between large, mid, and small cap stocks. This adaptability can be advantageous, especially in volatile markets.

Large Cap Funds: Allocating Rs 10,000 to a large cap fund adds stability to your portfolio. Large cap funds typically invest in well-established companies. This can provide steady growth and less volatility compared to mid or small cap funds.

Mid Cap Funds: Investing Rs 10,000 in mid cap funds can enhance growth potential. Mid cap companies often have significant growth opportunities. However, they come with higher risk compared to large cap companies.

Small Cap Funds: Allocating Rs 20,000 to small cap funds introduces higher risk but also higher potential returns. Small cap funds invest in smaller companies, which can grow rapidly. However, they are also more volatile.

Advantages of Your Current Strategy
Diversification: Your portfolio is well-diversified across different market capitalizations. This diversification can help mitigate risks and capture growth opportunities across various segments.

Systematic Investment Plan (SIP): Investing Rs 80,000 monthly through SIPs is a smart move. SIPs help in averaging out the cost of investment and instilling financial discipline.

Considerations for Improvement
While your portfolio is generally well-structured, there are areas for potential enhancement.

Overlapping Holdings: Multiple funds in your portfolio may have overlapping holdings. This can lead to concentration risk, reducing the benefits of diversification. Reviewing the specific holdings of each fund can help identify and reduce overlaps.

Performance Monitoring: Regularly monitor the performance of your funds. Market conditions and fund performance can change. Periodic reviews ensure your investments remain aligned with your goals.

Actively Managed Funds: Actively managed funds can offer potential advantages over index funds. These funds are managed by professional fund managers who actively select stocks. This can potentially lead to better returns, especially in volatile markets.

Investment Horizon: With a 15-year horizon, you have ample time to ride out market fluctuations. This long-term perspective is beneficial for equity investments. However, ensure your risk tolerance remains consistent over time.

Disadvantages of Direct Funds
Lack of Guidance: Direct funds lack the guidance provided by mutual fund distributors (MFDs) and certified financial planners (CFPs). This guidance can be crucial for making informed investment decisions.

Time and Effort: Managing direct funds requires significant time and effort. Regular monitoring and adjustments are needed to ensure optimal performance.

Professional Expertise: Investing through an MFD with CFP credentials offers access to professional expertise. This can help in selecting the right funds, optimizing returns, and managing risks effectively.

Benefits of Regular Funds
Expert Guidance: Investing through a CFP provides expert guidance. This can help you make informed decisions and stay on track to achieve your retirement goals.

Convenience: Regular funds managed by professionals offer convenience. You benefit from their expertise without having to invest time and effort in managing your investments.

Optimized Portfolio: A CFP can help create and maintain an optimized portfolio. This ensures your investments remain aligned with your financial goals and risk tolerance.

Building a Robust Retirement Corpus
Consistent Investing: Continue your SIPs consistently. Regular investments can help build a substantial corpus over time.

Review and Adjust: Periodically review and adjust your portfolio. This ensures it remains aligned with your financial goals and market conditions.

Professional Advice: Consider seeking advice from a CFP. Professional guidance can help optimize your portfolio and enhance your chances of achieving your retirement goals.

Conclusion
You've made a strong start towards building your retirement corpus. With consistent investments, regular reviews, and professional guidance, you can enhance your portfolio and achieve your retirement goals. Stay focused, disciplined, and proactive in managing your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Asked by Anonymous - May 18, 2024Hindi
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Hi sir, I am 40 years old, my goal is retirement with 5 cr. I am investing 30k through SIP in the following Funds. All Direct Funds. Investment Horizon - 20 to 22 Years. please check my portfolio,Wealth Creation, Risk Appetite- High. Please advise if I should pause or continue with these mutual funds. 1..parag parikh flexi cap 6k 2..kotak multicap 6k 3..quant large and mid cap 6k 4..quant mid cap 6k 5..nippon india small cap 6k
Ans: Evaluation of Mutual Fund Portfolio for Long-Term Wealth Creation

Your mutual fund portfolio demonstrates a thoughtful approach to long-term wealth creation, considering your high-risk appetite and investment horizon. Let's delve into the analysis and explore the advantages of diversification, active fund management, and potential considerations for optimizing your portfolio.

Portfolio Analysis

The portfolio comprises a well-diversified mix of actively managed equity funds across various market segments, including flexi-cap, multi-cap, large-cap, mid-cap, and small-cap funds. This diversified allocation helps spread risk and maximize growth opportunities, aligning with your aggressive investment strategy.

Benefits of Diversification

Diversifying across different fund categories mitigates concentration risk and enhances the potential for consistent returns. By investing in funds with varying investment styles and market capitalizations, you're positioned to capitalize on opportunities across different market segments while reducing vulnerability to specific market movements.

Active Fund Management Advantage

Your preference for actively managed funds underscores the belief in skilled fund management and the potential for generating alpha over passive index funds. Active fund managers have the flexibility to capitalize on market inefficiencies, adjust portfolios based on changing market dynamics, and potentially outperform the benchmark indices over the long term.

Disadvantages of Direct Funds over Regular Funds through MFDs

While direct funds offer lower expense ratios compared to regular funds, investing through a Certified Financial Planner or Mutual Fund Distributor (MFD) offers several advantages:

Professional Guidance: MFDs provide personalized advice and guidance tailored to your financial goals and risk profile, helping you make informed investment decisions aligned with your objectives.

Research and Due Diligence: MFDs conduct thorough research and due diligence to select suitable funds, saving you time and effort in identifying and analyzing investment options.

Portfolio Monitoring: MFDs offer ongoing portfolio monitoring and rebalancing services, ensuring your investments remain aligned with your financial goals and market conditions.

Transaction Support: MFDs assist with transaction-related tasks such as fund selection, investment execution, and documentation, simplifying the investment process and minimizing administrative burden.

Wealth Creation Potential

Given your long-term investment horizon and aggressive risk appetite, your portfolio has significant wealth creation potential. Equity investments, especially in actively managed funds, have historically delivered higher returns over extended periods, provided investors remain invested through market cycles.

Potential Considerations

Periodic Review: Regularly review the performance of individual funds in your portfolio and assess whether they continue to meet your investment objectives and expectations.

Rebalancing: Monitor the asset allocation of your portfolio and rebalance if certain funds deviate significantly from their target weights. Rebalancing helps maintain the desired risk-return profile and prevents overexposure to specific market segments.

Stay Informed: Stay informed about macroeconomic trends, regulatory changes, and market developments that may impact your investments. Continuous monitoring and informed decision-making are crucial for long-term investment success.

Final Advice

In conclusion, your mutual fund portfolio is well-structured and aligned with your long-term financial goals. While direct funds offer cost advantages, consider leveraging the expertise of a Certified Financial Planner or MFD for personalized guidance and support. By staying disciplined, informed, and focused on your objectives, you're well-positioned to achieve substantial wealth accumulation and financial security over the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 2024

Asked by Anonymous - Jun 03, 2024Hindi
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Hi Sir.. I am 35year, my investments as of now - Mutual fund portfolio -11.4lakh PF - 11lakh PPF - 3.5lakh - 2.5k/month from last 9years Stocks - 3.5lakh I have been investing in 3mutual funds since last 9years & planned to continue next 10-15 years. 1. Nippon India multi cap growth - 1k 2. Nippon India vision growth - 1k 3. ICICI Prudential multi asset fund growth - started investing 1k pm with 500rs increament per year now investing 5k/month 4. HDFC defence fund direct growth - 2.5k from last 4months Total mutual fund portfolio value- 11.40lakh as of now. Planning to retire at 50, with corpus of 2.5cr. Kindly confirm 1. is any changes required in my current mutual fund portfolio. 2. Thinking to add 2new mutual fund to invest 5-6k per month for next 10-12years, please confirm best mutual funds. 3. Kindly suggest is any changes required to get 2.5cr corpus in next 15years.
Ans: Investment Analysis and Portfolio Review
Your current investment strategy shows consistency and foresight. Investing in mutual funds, provident funds, and stocks indicates a balanced approach. However, to ensure you achieve your goal of a Rs. 2.5 crore corpus by retirement at 50, let's dive deeper into your portfolio and suggest some refinements.

Current Mutual Fund Portfolio
Nippon India Multi Cap Growth Fund: This fund offers diversified exposure across market capitalizations. Multi-cap funds can weather market volatility by adjusting their investment across large, mid, and small-cap stocks.

Nippon India Vision Growth Fund: This is a sectoral/thematic fund. While it offers growth potential, it also carries higher risk due to sector concentration.

ICICI Prudential Multi Asset Fund Growth: Multi-asset funds diversify across equity, debt, and other asset classes. Increasing your SIP amount annually is a good strategy for growth.

HDFC Defence Fund Direct Growth: A new addition focused on the defence sector. While thematic funds can yield high returns, they are also subject to higher risks.

Assessment and Recommendations
Your current portfolio mix indicates a balanced but slightly aggressive investment approach. Considering your retirement goal, here are some recommendations:

1. Maintain Diversification:
Ensure your portfolio remains diversified across different sectors and market capitalizations. This reduces risk and enhances return potential.

2. Review Sectoral Exposure:
Sectoral and thematic funds can be volatile. Limit your exposure to these funds to a small percentage of your overall portfolio.

3. Increase SIP Amounts:
To achieve a Rs. 2.5 crore corpus in 15 years, consider increasing your SIP contributions gradually. Compounding benefits will enhance your returns over time.

Suggested New Mutual Funds
Adding two new mutual funds can help further diversify your portfolio. Here are some options to consider:

1. Diversified Equity Fund:
A diversified equity fund invests across various sectors and market caps. It offers balanced growth with moderate risk.

2. Hybrid Fund:
Hybrid funds invest in both equity and debt instruments. They provide stability with the potential for equity-like returns.

Action Plan for Rs. 2.5 Crore Corpus
To achieve your target corpus, consider the following steps:

1. Review and Adjust Annually:
Regularly review your portfolio's performance. Adjust your investments based on market conditions and your financial goals.

2. Increase Investments Gradually:
Consider increasing your SIP amounts annually. This leverages the power of compounding and helps in accumulating wealth faster.

3. Stay Disciplined:
Maintain a disciplined investment approach. Avoid withdrawing investments prematurely and stay focused on your long-term goal.

4. Consult a Certified Financial Planner:
A certified financial planner can provide personalized advice and strategies. They help optimize your portfolio based on your risk profile and financial goals.

Additional Recommendations
1. Emergency Fund:
Ensure you have an emergency fund covering at least 6-12 months of expenses. This prevents premature withdrawal of your investments during emergencies.

2. Insurance Coverage:
Adequate life and health insurance coverage protects your investments. It ensures financial stability for your family in case of unforeseen events.

3. Regular Monitoring:
Keep track of your investment portfolio. Regular monitoring helps in making informed decisions and adjusting strategies as needed.

Conclusion
Your current investment strategy is commendable, showcasing consistency and a balanced approach. With a few adjustments and additional investments, you can achieve your retirement goal of Rs. 2.5 crore.

Stay disciplined, increase your SIP amounts gradually, and maintain diversification. Consulting a certified financial planner will provide personalized guidance and optimize your portfolio further.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 24, 2024

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I'm 48 years old (with moderate risk appetite) planning to start a monthly SIP of Rs. 40,000 in the following Mutual Funds. 1) Nippon India Large Cap Fund - 10,000 (25%) 2) ICICI Prudential Blue Chip Fund - 10,000 (25%) 3) UTI Nifty Fifty Index Fund - 8,000 (20%) 4) HDFC Flexi Cap Fund - 4,000 (10%) 5) HDFC Mid cap Opportunities Fund - 4,000 (10%) 6) Nippon India Small Cap Fund - 4,000 (10%) My ambition is to have a retirement corpus of 2.70 crore by the age of 60; expecting 6% interest on that corpus (16,20,000) in order to have a monthly SWP of 1,35,000 (16,20,000÷12). Kindly advise whether the retirement corpus is attainable as well as regarding the fund selection and percentage allocation.
Ans: Your initiative to plan for retirement and invest systematically is commendable. Let us evaluate your goal and proposed portfolio comprehensively.

Assessing Your Retirement Goal

Target Corpus: You aim to build Rs. 2.70 crore by age 60.

Monthly SWP Goal: You plan to withdraw Rs. 1,35,000 monthly, assuming a 6% return on the corpus.

Investment Period: You have 12 years to accumulate the desired corpus.

Monthly SIP Commitment: You intend to invest Rs. 40,000 every month.

Achieving this target is feasible with disciplined investing and prudent portfolio selection. Let us refine your approach to maximise the likelihood of success.

Analysis of Your Fund Selection and Allocation

Your portfolio consists of a mix of large-cap, flexi-cap, mid-cap, and small-cap funds. While this diversification is sensible, certain adjustments can optimise performance.

Allocation to Large-Cap Funds (50%)

Investing 50% in large-cap funds provides stability to the portfolio. Large-cap funds are less volatile and offer consistent returns over time.

However, consider actively managed large-cap funds instead of index funds. Actively managed funds outperform during market downturns and adjust dynamically to market conditions.

Index funds like Nifty Fifty have limitations in delivering consistent outperformance due to their passive management.

Allocation to Flexi-Cap Funds (10%)

Flexi-cap funds offer the advantage of dynamic allocation across market capitalisations.

This allocation is suitable as it provides both growth potential and stability. Ensure you select funds with proven track records and experienced fund managers.

Allocation to Mid-Cap Funds (10%)

Mid-cap funds balance growth and risk. They have the potential to outperform large-cap funds in the long term but come with moderate volatility.

A 10% allocation is reasonable for your moderate risk appetite.

Allocation to Small-Cap Funds (10%)

Small-cap funds have higher growth potential but also higher risk.

A 10% allocation is appropriate, provided you have a long-term horizon and regular monitoring.

Optimising Fund Allocation

Current allocation skews heavily towards large caps. Consider redistributing 5% from large caps to mid-cap or small-cap funds for better growth prospects.

A revised allocation could be:

Large-Cap Funds: 45%

Flexi-Cap Funds: 10%

Mid-Cap Funds: 15%

Small-Cap Funds: 15%

Debt/Hybrid Funds: 15% (for added stability).

Incorporating Debt and Hybrid Funds

Adding 15% allocation to debt or hybrid funds can reduce volatility. These funds provide stability, especially as you near retirement.

Consider funds with low duration or conservative allocation strategies.

Tax Implications

Equity Funds: Long-term capital gains (LTCG) over Rs. 1.25 lakh are taxed at 12.5%. Plan withdrawals to minimise tax liability.

Debt Funds: Gains are taxed as per your income tax slab. Avoid frequent redemptions to reduce tax burden.

SWP Taxation: Withdrawals are subject to capital gains tax. Efficient tax planning is crucial for optimising post-retirement cash flow.

Key Recommendations

Fund Selection

Choose funds with consistent performance and experienced fund managers.

Actively managed funds provide better long-term returns compared to index funds. Avoid index funds due to limited growth potential during volatile markets.

Portfolio Monitoring

Review the portfolio every six months. Replace underperforming funds promptly.

Rebalance the portfolio annually to maintain the desired allocation.

Emergency Fund

Maintain an emergency fund of 6-12 months’ expenses. This ensures liquidity during unforeseen events and prevents disruption to your SIPs.

Health Insurance

Ensure adequate health coverage for yourself and family. This prevents dipping into your retirement savings for medical needs.

Finally

Your retirement plan is well-thought-out. Minor adjustments to your fund selection and allocation can enhance growth potential and stability. Engage a Certified Financial Planner for scheme-specific recommendations and regular portfolio review. This ensures you stay on track to achieve your retirement goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

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Nayagam P

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Career Counsellor - Answered on Jul 08, 2025

Asked by Anonymous - Jul 08, 2025Hindi
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Hi Sir, I am Ajay from Bangalore. My son got admission into Mathematics and computing in RGIPT, Amethi. Also he is getting admission into IIST, Thiruvananthapuram. Which one he can select sir. Waiting for your reply. Thanking you sir.
Ans: Ajay Sir, Rajiv Gandhi Institute of Petroleum Technology’s B.Tech in Mathematics & Computing is a new National Importance programme (NIRF #80) blending deep theoretical coursework, specializations in mathematical modeling, AI and financial mathematics, and PSU-aligned recruitment (ONGC, IOCL, BPCL) (subject to eligibility criteria & recruitment policies which vary every year) with average B.Tech packages of ?9.4 LPA and the highest up to ?22 LPA. The multidisciplinary labs and project work prepare students for roles in the software and energy sectors; however, since this is a newer course, it has fewer alumni and its industry partnerships are still developing. Indian Institute of Space Science & Technology delivers focused B.Tech specializations in Aerospace and Avionics with direct ISRO absorption for 62% of graduates (CGPA ≥ 7.5) under a three-year service bond, and 38 non-ISRO placements (29% of B.Tech cohort) averaging ?10.5 LPA with top offers at ?16.6 LPA. Its state-of-the-art space-tech labs, guaranteed internships at ISRO centres and strong research orientation foster niche space-science careers but involve rural campus distance and binding service obligation.

For broad computational careers and flexible industry options, the recommendation is RGIPT Mathematics & Computing. If a direct ISRO pathway, specialized space-tech training and research immersion are priorities, the recommendation shifts to IIST Thiruvananthapuram B.Tech. (Important Note: Please be aware that absorption into ISRO is not guaranteed, as its recruitment policies may vary from year to year and are also subject to additional eligibility conditions). All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 08, 2025

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I am residing in Delhi. My daughter is getting admission in B.Tech IT at Banasthali, Btech AI at NMIMS MPSTME, Mumbai and Btech AIML at Akihilesh Das Gupta (IP University). Which one will be best for her, I am confused to select. What should be the order of these colleges
Ans: Aditya Sir, Banasthali Vidyapith’s B.Tech in Information Technology excels as a women-only NAAC A++-accredited campus with PhD-faculty, cutting-edge software and networking labs, mandatory 20-week industry internships, and sustained >97% placement consistency. NMIMS MPSTME Mumbai’s B.Tech in Artificial Intelligence integrates H100-GPU AI/ML labs, an industry-shaped curriculum, a five-stage placement model, and 92%+ placements within two batches. Dr. Akhilesh Das Gupta Institute of Technology & Management’s B.Tech in AI & ML (formerly Northern India Engineering College) under GGSIPU affiliation offers Outcome-Based Education, dynamic hackathons, 180-seat intake, active pre-placement training, and 70–80% placement support through MoUs with top recruiters. All three institutions feature robust accreditation, experienced faculty, strong labs, industry partnerships, and dedicated placement cells to support female students in technology fields.

For a secure, women-centric environment with top placement consistency, the recommendation is Banasthali Vidyapith IT. Next, the recommendation shifts to NMIMS MPSTME AI for advanced infrastructure and high placement rates. Finally, ADGITM AI & ML for practical OBE pedagogy and active industry engagement. All the BEST for Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2025

Asked by Anonymous - Jul 08, 2025Hindi
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I am 45 yrs old and work in an MNC. 1.5 lac my take home salary( including annual bonus).18k from rent. Mother's pension 53k+interest she earns on her FD's 15k pm.3 houses of Rs 60L,75L and 30L. 1 Plot 30 Lac. FD 32 Lac, shares 2.15 lac. Sip 25k, ppf 19.5 lac, pf 20.7 lac, nps 9.7 lac current value, gold bonds 8 lac current value. One Home loan 19.8 lac left (I pay 15k extra in each emi so only 4 yrs left hence will finish my 20 yrs home loan within 10 yrs itself. Car loan 7 lac left for 5 yrs. Gold jewellery worth 30 lac. Am I going fine in my savings? We are a simple cohesive traditional family and believe on savings and investments. Expenses- 48k home loan emi. Car loan 13600 emi School fees 21k pm total for 2 kids. house hold expenses 15k pm Other expenses 10k pm. As per my calculation I save around 40k pm and my mother saves around 68k per month. Will 4 to3 cr be enough for me after retirement as me and my wife plan to lead a simple life during our 60's. And can I plan to retire at 57-58 yrs of age. we want buy another plot worth 8-10 lacs at an upcoming tourist place?Kindly guide on our current and future planning .
Ans: You are doing very well. Your savings are strong.
Your goals are clear and realistic.
Let’s go point by point and build a 360-degree plan.

Overall Income Summary
Take-home salary is Rs 1.5 lakh (including bonus).

Rs 18,000 rent adds passive income.

Your mother contributes Rs 68,000 monthly (pension + FD interest + savings).

This makes your household income base strong.

You are already saving Rs 40,000 monthly.
You are repaying loans aggressively.
That shows your financial discipline.

Expenses Are Controlled
Rs 48,000 EMI for home loan.

Rs 13,600 EMI for car loan.

Rs 21,000 for school fees.

Rs 15,000 household.

Rs 10,000 other expenses.

All major expenses are accounted for.
You still save Rs 40,000.
Your mother saves Rs 68,000.
That’s Rs 1.08 lakh saved monthly as a family.
This is a powerful saving engine.

Asset Summary Overview
You have built a diverse portfolio:

3 houses: Rs 60L, Rs 75L, Rs 30L

1 plot: Rs 30L

FD: Rs 32L

Shares: Rs 2.15L

SIP: Rs 25,000 per month

PPF: Rs 19.5L

PF: Rs 20.7L

NPS: Rs 9.7L

SGBs: Rs 8L

Gold jewellery: Rs 30L

This is a solid base.
You have blended fixed, equity, and gold.
You have real estate, but avoid adding more.
Real estate has low liquidity and higher maintenance.

Current Loans
Rs 19.8L home loan – 4 years left with extra EMI

Rs 7L car loan – 5 years left

You are paying Rs 15,000 extra EMI per month.
This will finish home loan in 10 years, instead of 20.
That is smart planning.

Action plan:

Don’t prepay further. Keep current prepayment rhythm.

Once home loan ends, divert EMI into SIP.

That will increase your mutual fund growth.

Mutual Fund Planning
You invest Rs 25,000 in SIPs monthly.
Very good contribution.

Make sure:

You are not investing in index funds.

Index funds copy market blindly.

They underperform in bear markets.

Actively managed mutual funds give expert guidance.

Use only regular funds, not direct.

Direct funds have no support from certified planners.

Regular funds give MFD/CFP advice, portfolio balancing.

Divide SIP in:

One large and mid-cap fund

One flexi-cap fund

One hybrid equity fund

One aggressive hybrid fund (for post-retirement cash flow)

Review funds every 12 months.
Don’t churn often.
Continue SIP till retirement without break.

Your PPF and PF Status
PPF Rs 19.5L

PF Rs 20.7L

These are long-term assets.
Don’t withdraw early.
Use for post-retirement stability.
Contribute maximum Rs 1.5L per year in PPF.
PPF gives guaranteed tax-free return.
Avoid using PPF for plot buying.

NPS – Future Pension Support
Rs 9.7L in NPS till now

Continue contributing

Make use of Sec 80CCD(1B) for extra Rs 50,000 benefit

NPS will give you monthly pension after 60.
But it will be limited.
You must build mutual fund corpus to support it.

FD and SGB – Safety and Stability
FD: Rs 32L

Interest adds to your mother’s income

Maintain Rs 20L in FD as safety

Don’t increase FD further

Extra money should go to mutual funds

SGBs worth Rs 8L are a good hedge
They give 2.5% interest + gold appreciation
Keep holding till maturity

But don’t increase gold beyond 10% of portfolio
Jewellery Rs 30L already covers that

Real Estate Holdings – Keep but Don’t Add
You already have:

3 houses worth Rs 165L total

1 plot worth Rs 30L

Plan to buy new plot for Rs 8–10L

Too much exposure to land and property is risky.
These are illiquid.
Rental return is low.
Upkeep cost is high.
Plot value depends on location and demand.

Avoid buying more plots.
Use that money to invest in mutual funds instead.
You will get better compounding.

Kids Education and Support
You are paying Rs 21,000 school fees for two kids.
Start a goal-based SIP for each child.

Open two mutual fund folios (one for each child)

Invest Rs 7,000 monthly per child for education

Use equity mutual funds – regular plans only

Don’t use ULIP or child plans from insurance

Education cost is rising fast.
You’ll need Rs 30–40L per child after 10–12 years
Start early. Grow with SIPs.

Retirement Planning – Target Corpus
You want to retire at 57 or 58.
You plan to live a simple life in your 60s.
You are thinking of Rs 3–4 crore retirement corpus.

Let us understand what you already have:

PPF + PF = Rs 40L

FD = Rs 32L

NPS = Rs 9.7L

SIP will grow into Rs 1.3–1.6 crore in 12 years

Rent from property can support you too

Your mother’s assets may come as legacy also

Yes, your target is realistic.
You can retire at 57–58.
But only if:

You stay invested

You don’t over-invest in land

You boost SIP after loan ends

You avoid early withdrawals

You structure income for post-retirement

Post-Retirement Monthly Cash Flow Plan
You will need:

Monthly living expense

Healthcare buffer

Travel and social activities

Post-retirement income will come from:

Rent from 1–2 properties

Interest from FD or bonds

SWP from mutual funds

NPS monthly pension

SGB interest income

Structure your post-60 income like this:

50% from mutual funds

25% from FD/bonds

15% from rent

10% from gold/SGBs

This mix gives stability, growth, and cash flow.

Insurance and Emergency Protection
You didn’t mention health or life cover.
Please ensure:

You have family floater health policy for all

Sum insured should be at least Rs 15–20 lakh

You have pure term insurance till age 60–65

No ULIP or return-of-premium term plans

If you have ULIP/return plan – surrender it

Reinvest in mutual funds – better growth

Emergency fund should be Rs 5–10L
Keep it in liquid mutual fund
FD is not ideal for sudden cash needs

Tax Efficiency Plan
You are under new tax regime
So no deductions are used
But still:

NPS up to Rs 50,000 is allowed

You can still save tax under Section 80CCD(1B)

Use it smartly to lower tax outgo

Also note:

Equity mutual fund LTCG above Rs 1.25L is taxed at 12.5%

STCG taxed at 20%

Debt funds taxed as per your slab

So, don’t redeem mutual funds frequently

Stay long-term invested

Final Insights
You are doing great with your money.
Savings are strong. Discipline is solid.
But now focus more on:

Mutual funds than real estate

Actively managed funds than index

Regular plans than direct funds

Retirement cash flow plan

Health and life protection

SIPs for children’s future

Your Rs 3–4 crore retirement goal is achievable.
But don’t buy the new tourist plot.
Use that Rs 10 lakh in mutual funds instead.
It will grow to Rs 25–30 lakh by retirement.

Keep reviewing your plan every 12 months.
Stay invested. Avoid panic. Keep life simple.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9456 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2025

Money
am 45 yrs old. 1.5 lac my take home salary( including annual bonus).18k from rent. Mother's pension+interest earned on her FD's 15k pm.3 houses of Rs 60L,75L and 30L. 1 Plot 30 Lac. FD 32 Lac, shares 2.15 lac. Sip 25k, ppf 19.5 lac, pf 20.7 lac, nps 9.7 lac current value, gold bonds 8 lac current value. One Home loan 19.8 lac left (I pay 15k extra in each emi so only 4 yrs left hence will finish my 20 yrs home loan within 10 yrs itself. Car loan 7 lac left for 5 yrs. Gold jewellery worth 30 lac. Am I going fine in my savings? We are a simple traditional family and believe on savings investments. Expenses 48k home loan emi. Car 13600 emi School fees 21k pm total for 2 kids. house hold expenses 15k pm Other expenses 10-12k pm As my calculation I save around 40-45k pm. Will 43 cr be enough for me after retirement as me and my wife plan to lead a simple cosy life. Can I retire at 57-58 yrs of age.
Ans: It’s great to see your savings mindset and disciplined investment habit. You have a strong asset base and clear goals. Let us assess your situation critically and provide a well-rounded strategy.

Evaluating Your Current Wealth Position

Age: 45 years

Take?home salary: Rs.1.5 lakh per month (including bonus)

Rental income: Rs.18,000 per month

Mother’s pension + FD interest: Rs.15,000 per month

Total monthly inflows: Rs.1.83 lakh

Your assured cash flows are strong. You also have assets across various categories:

Residential properties: Rs.60L, Rs.75L, Rs.30L

Plot: Rs.30L

FD holding: Rs.32L

Shares: Rs.2.15L

Mutual Fund SIP: Rs.25k per month

PPF balance: Rs.19.5L

PF: Rs.20.7L

NPS: Rs.9.7L

Sovereign Gold Bonds: Rs.8L

Gold jewellery: Rs.30L

Your known liabilities:

Home loan: Rs.19.8L remaining, 10 years tenure left

Car loan: Rs.7L remaining, 5 years tenure

Monthly obligations:

Home EMI: Rs.48k

Car EMI: Rs.13,600

Children’s school fees: Rs.21k

Household expenses: Rs.15k

Other expenses: Rs.10–12k

Est. monthly savings: Rs.40–45k

Your query: is this progress good? Will Rs.4.3 crore at retirement suffice? Can you retire at 57–58 years? Let’s assess.

Income Sustainability in the Near Term

Your current monthly inflows (excluding salary) total Rs.33,000. This is helpful but modest.
Your salary is major source. Continue managing both active and passive inflows carefully.

Debt Situation

Home loan at Rs.19.8L: you pay Rs.15k extra EMI. That shortens tenure and lowers interest.

Car loan Rs.7L will finish in 5 years. Good.

Better to accelerate home loan repayment using surplus cash.
No need for new debt. The aim is to be debt?free before retirement.

Expense Analysis & Savings Health

Total monthly expenses (fixed + variable): around Rs.1.17 lakh.
With monthly net inflows at Rs.1.83 lakh, you save Rs.66,000. This matches your statement of ~40–45k saving after expenses.

Your current saving rate (~36%) is strong for your age.
It’s good you maintain a prudent expense ratio of roughly 36%.

Assessing Retirement Corpus Need

You target retirement at 57–58 years—12–13 years from now.
You estimate needing Rs.4.3 crore corpus at retirement. Let us examine adequacy.

Typical assumptions:

Post-retirement annual expense: Rs.15 lakh (approx Rs.1.25 lakh monthly)

Life after 58 years may span 30 years (till age 88)

To generate inflation-adjusted Rs.15 lakh annually, corpus of Rs.4–5 crore seems reasonable, assuming moderate withdrawal and portfolio returns.

Hence, your Rs.4.3 crore goal appears aligned with a simple conservative model.

Projecting Your Corpus Accumulation

You currently hold:

Real estate: Rs.1.95 crore

Financial assets (FD, PPF, PF, NPS, SGB, shares): total approx Rs.1.12 crore

Ongoing SIPs: Rs.25k/month

Over the next 13 years:

Your PF, PPF, NPS will grow via contributions and interest

SIP contributions will compound

Debt obligations will reduce

With disciplined investing and no major lifestyle inflation, you are on track to build Rs.4–5 crore corpus.

But, a focused strategy is needed. Let us outline it.

Strategy to Optimize Current Assets

Keep your property. It gives rental of Rs.18k per month.

Do not convert property into pension-income real estate. It takes effort.

Maintain FD of Rs.32L as liquid reserve.

Keep NPS, PF, PPF as part of retirement mix. All are tax-efficient vehicles.

Shares: continue small equity exposure via SIP to benefit from long-term growth.

Sovereign Gold Bonds and jewellery: maintain 5–8% of portfolio weight.

Debt Reduction Plan

Home loan: pay extra Rs.15k EMI. This reduces total interest materially.

Aim to close home loan before age 55 if possible.

Car loan will end in 5 years. Then redirect Rs.13.6k towards investments or loan prepayment.

Eliminate debt before retirement to reduce financial burden and increase monthly surplus.

SIP Planning & Asset Allocation

Current SIP of Rs.25k/month is good. But you can increase selectively.

After home and car loan finish, redirect that EMI into SIP.

Increase SIP by at least Rs.25–30k per month over the next 5–7 years.

Maintain an asset allocation ratio: 60% debt/fixed income, 30% equity, 10% gold.

Do not invest in index funds—they lack active risk management.

Do not use direct funds—they lack guidance, professional review, and rebalancing.

Use actively managed equity and hybrid funds, via regular plans under Certified Financial Planner’s guidance, to ensure disciplined growth and periodic portfolio reviews.

Emergency & Contingency Planning

You need liquid funds for emergencies or medical events.

Maintain 6–12 months of expenses (Rs.7–8 lakh) in liquid fund or sweep-in FD.

Keep a separate buffer for your mother if needed.

Consider health cover for yourself and family, as medical costs rise at older age.

Children’s Educational Planning

Your children’s school fees are Rs.21k per month total.
Your current savings and income can support their schooling until graduation.
But consider:

Future educational goals (professional courses, abroad, etc.)

Build goal-based corpus via separate SIPs for higher education.

Rebalance once fees are stable or decrease after college is over.

Tax Efficiency and Investment Mix

House rent helps reduce taxable income partly via standard deduction.

PPF and PF contributions are tax-efficient.

NPS contributions get 80CCD benefits, and tier 1 withdrawal gets favourable tax treatment.

FD interest and rental income are fully taxable; manage via slab planning.

As per new MF tax rules:

Equity mutual fund LTCG above Rs.1.25 lakh taxed at 12.5%

STCG at 20%

Debt mutual fund gains taxed as per income slab

Plan mutual fund withdrawals via SIP SWP or goal-based exits to optimise tax.

Retirement Income Generation Strategy

Goal: retire at 57–58 years, staying financially comfortable.

Post?retirement: You will rely on:

Rental income

Systematic Withdrawal from mutual fund corpus

Interest from PF, PPF, NPS, FD

Pension (if any under NPS Tier 2)

To ensure monthly income of Rs.1.25 lakh:

Rental + pensions + interest together should cover Rs.60k

SWP from mutual funds to cover remaining Rs.65k

With Rs.4–5 crore corpus, safe withdrawal rate of ~6% yields Rs.25–30k per month depending on returns

Add to interest and rent, it totals required amount

Adjust based on actual return trajectories and inflation.

Portfolio Rebalancing Over Time

As you near age 55–58:

Gradually reduce equity exposure while increasing debt allocation

Shift part of accumulated equity portfolio to hybrid or debt instruments

Keep monthly SWP going post-retirement

Maintain flexibility and avoid rigid options like annuities

Lifestyle, Inflation and Expense Management

Projected inflation of 6–7% annually means cost of living in future doubles every 10–12 years.
If today you spend Rs.1.17 lakh, at 58 years it could be Rs.4–5 lakh.
Your corpus needs to cover this indexed expense for 30+ years.

Simple cosy lifestyle may still escalate due to medical and travel ambitions.
Keep reviewing lifestyle plans every 5 years.

Contingency for Medical, Long?Term Care and Caregiving

In later years, medical expenses can be high.
Need to plan for long?term care or assisted living.

Consider personal health cover for family.

Keep liquidity for unexpected medical events.

Build critical illness top?up plan if not already.

Plan will/estate, with instructions for elder care.

Estate Planning and Succession Readiness

By age 55, ensure legal and succession matters are in order:

Draft or update your will

Nominate family members in all investment and bank accounts

Keep property documents accessible

Discuss financial plan with spouse and children

Ensure they understand how to access accounts and investments

This gives peace of mind and clarity for family.

Review Plan Annually with Certified Financial Planner

An annual review helps to:

Track progress on home loan repayment

Measure corpus accumulation vs target

Rebalance allocation to match age and goals

Adjust for change in expenses or incomes

Refine retirement age goal based on updated data

Consistent monitoring ensures you stay on track.

Risks to Watch Out For

Medical emergencies or sudden lifestyle changes

Market corrections impacting SIP returns

Asset illiquidity, especially property

Inflation eroding monthly spending power

Underestimating future tax or rule changes

Proper planning helps mitigate these risks.

Final Insights

You are saving well and building wealth steadily

Your target corpus of Rs.4.3 crore seems realistic

Debt is under control and will be cleared before retirement

Continue active investing via SIPs, increasing gradually

Avoid passive index or direct funds; choose active funds via CFP?supported regular plans

Balance portfolio across equity, debt, gold for stability

Plan health cover, estate documentation, and will in place

Review annually to stay aligned with your goal

Rs.4.3 crore at retirement, aligned with rental, pension, and SWP, can sustain your desired post-retirement lifestyle

Your disciplined savings and investments provide a solid foundation.
Retirement at 57–58 is achievable with proper execution.

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

...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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