Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 17, 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

Question by Santosh on May 16, 2024Hindi

Money

Does the 4% rule applies in India considering Inflation

Ans: The 4% withdrawal rule is a widely used guideline in retirement planning, primarily based on historical data from the United States. It suggests that retirees can withdraw 4% of their retirement savings annually without running out of money for at least 30 years. However, applying this rule in India requires a nuanced approach due to differences in inflation rates, market conditions, and economic factors. Let's analyze its applicability in the Indian context.

The 4% Rule and Inflation
Origin of the 4% Rule
Developed by Financial Planner: William Bengen in the 1990s.
Assumptions: Based on historical returns from US stocks and bonds, and inflation rates.
Differences in Indian Inflation
Higher Inflation Rate: Historically, India experiences higher inflation compared to the US, often ranging between 6-8%.
Impact on Purchasing Power: Higher inflation erodes purchasing power more quickly, necessitating a higher withdrawal rate to maintain the same standard of living.
Applicability of the 4% Rule in India
Higher Withdrawal Rate Required
Due to higher inflation, a 4% withdrawal rate may not be sufficient for Indian retirees. They might need to consider a slightly higher rate, adjusted for local inflation rates, to meet their financial needs.

Market Returns and Volatility
Equity Market Returns: Indian equity markets have the potential for higher returns compared to developed markets, but they also come with higher volatility.
Fixed Income Instruments: Fixed deposits and government bonds in India offer higher interest rates than in the US, providing a safety net for retirees.
Adapting the Rule to Indian Conditions
Conservative Approach
Lower Initial Withdrawal Rate: Start with a lower initial withdrawal rate, such as 3-3.5%, to account for higher inflation and market volatility.
Increase with Caution: Gradually increase the withdrawal rate based on the performance of your investments and inflation trends.
Dynamic Withdrawal Strategy
Flexible Withdrawals: Adjust the withdrawal amount annually based on portfolio performance and inflation. This helps in managing longevity risk and preserving capital.
Bucket Strategy: Divide your retirement corpus into different buckets – short-term (cash, FDs), medium-term (debt funds), and long-term (equity funds). Withdraw from the least volatile bucket first.
Practical Steps for Indian Retirees
Diversified Portfolio
Asset Allocation: Maintain a diversified portfolio with a mix of equities, debt, and other asset classes. This helps in balancing risk and returns.
Periodic Review: Regularly review and rebalance your portfolio to align with changing market conditions and personal needs.
Inflation-Protected Investments
Inflation-Linked Investments: Consider investing in instruments that provide inflation protection, such as hybrid funds.
Real Estate and Gold: These assets can act as a hedge against inflation, though they come with their own set of risks and liquidity issues.
Professional Guidance
Certified Financial Planner: Consult a Certified Financial Planner to tailor the withdrawal strategy based on your specific financial situation and goals. They can provide personalized advice considering your risk tolerance and retirement horizon.
Conclusion
While the 4% withdrawal rule offers a starting point for retirement planning, its direct application in India requires adjustments for higher inflation and different market conditions. Adopting a flexible and dynamic withdrawal strategy, maintaining a diversified portfolio, and seeking professional advice are essential steps to ensure a sustainable retirement income in India.

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.

MoneyReply

You may like to see similar questions and answers below

Mihir Tanna |977 Answers |Ask -Follow

Tax Expert - Answered on Mar 30, 2023

Question by Rajat - Mar 27, 2023Hindi

Money

is exemption limit of 300000 is applicable in new tax regime if ur income exceeds 7 lakh per annum

Ans: You can not take both benefit together. If income is upto 7 lac, tax rebate of Rs.22500 is available and slab rate will not be applicable.

Slab rate applicable once you are not eligible for rebate

Ramalingam Kalirajan |7290 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 17, 2024

Question by Raviprakash - Jun 16, 2024Hindi

Money

I am a 32 year old government servant with Basic salary of 82590/- and I am deducting Rs. 13,500/- monthly towards KGID with assured sum of Rs. 40,23,000/-, My question is, considering the inflation is the assured sum worth it?

Ans: Evaluating the Worth of Assured Sum Considering Inflation

As a 32-year-old government servant with a basic salary of Rs 82,590, you are currently contributing Rs 13,500 monthly towards a Karnataka Government Insurance Department (KGID) policy with an assured sum of Rs 40,23,000. Your concern about whether the assured sum is worth it, considering inflation, is very valid. Let's evaluate this comprehensively.

Understanding the Impact of Inflation

Inflation erodes the purchasing power of money over time. What Rs 40,23,000 can buy today will be significantly less in the future due to inflation. Typically, inflation in India hovers around 4-6% annually. Over 20-30 years, this can drastically reduce the real value of your assured sum.

Assessing the Assured Sum

While Rs 40,23,000 may seem substantial today, it’s essential to consider its future value. In 20 years, at an average inflation rate of 5%, the purchasing power of this amount will be considerably less. This means that the financial security you perceive today may not hold the same value when you actually need it.

Considering Your Financial Goals

Your financial goals and responsibilities play a crucial role in determining if the assured sum is adequate. As a government servant, you might have benefits like a pension, but it’s essential to ensure that your family’s financial needs are fully covered in case of any unforeseen circumstances. Evaluating your long-term goals, such as children’s education, marriage, and retirement, is crucial in this context.

Alternative Investment Options

While the KGID policy provides a sense of security, exploring other investment avenues can offer better inflation-adjusted returns. Diversifying your investments can help in building a robust financial portfolio.

Mutual Funds and Systematic Investment Plans (SIPs)

Mutual funds, especially actively managed funds, can provide better returns compared to traditional insurance policies. Investing in equity mutual funds through Systematic Investment Plans (SIPs) can help combat inflation and build wealth over the long term. Actively managed funds are preferred over index funds due to their potential to outperform the market through professional fund management.

Disadvantages of Index Funds

Index funds passively track market indices and do not aim to outperform them. This means that during market downturns, your investments in index funds will also suffer. They lack flexibility and do not provide the active management needed to navigate market volatility effectively.

Advantages of Actively Managed Funds

Actively managed funds have professional fund managers who make strategic decisions to outperform the market. They can identify undervalued securities and manage market fluctuations effectively. This active management approach can provide better returns and help in achieving your long-term financial goals.

Understanding Direct vs. Regular Mutual Funds

Direct mutual funds have lower expense ratios but require you to make all investment decisions. This can be overwhelming without professional guidance. Regular funds, invested through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential, offer valuable advice and help in selecting the right funds.

Disadvantages of Direct Funds

Managing direct funds requires significant financial knowledge and time. Without expert guidance, you might miss out on potential opportunities or make poor investment choices. The cost savings from lower expense ratios in direct funds might not compensate for the potential loss in returns due to lack of professional management.

Benefits of Regular Funds

Investing through an MFD with a CFP credential provides access to expert advice, ensuring your investments align with your financial goals. They help navigate market complexities and make informed decisions. The additional cost of regular funds is justified by the professional guidance and support you receive.

Insurance vs. Investment

Insurance and investment serve different purposes. Insurance is meant for risk coverage, providing financial security to your family in case of your untimely demise. Investment, on the other hand, aims to grow your wealth. Relying solely on an insurance policy like KGID for wealth accumulation is not advisable.

Term Insurance

A better approach is to separate insurance from investment. Consider opting for a term insurance policy with a higher coverage amount at a lower premium. Term insurance provides pure risk coverage without any investment component, ensuring your family is financially protected.

Investing the Savings

The savings from opting for a term insurance policy can be invested in mutual funds or other investment avenues. This combined approach of adequate risk coverage through term insurance and wealth accumulation through investments can provide better financial security and growth.

Evaluating Investment Cum Insurance Policies

If you currently hold LIC, ULIP, or other investment cum insurance policies, it’s essential to evaluate their performance. These policies often have high charges and lower returns compared to mutual funds. Surrendering these policies and reinvesting in mutual funds might be a better option.

Maintaining Liquidity

Liquidity is crucial to meet unforeseen expenses. Keeping a portion of your investments in liquid assets, such as savings accounts or short-term fixed deposits, ensures you can access funds without disrupting your long-term investment strategy. Maintaining an emergency fund of at least six months of living expenses is advisable.

Tax Implications

Consider the tax implications of your investments. Different investment avenues have varying tax treatments. For instance, long-term capital gains from mutual funds are taxed differently than interest from fixed deposits. Planning your investments and withdrawals to minimize tax liabilities is crucial for optimizing returns.

Health Insurance

Health expenses can significantly impact your financial stability. Ensure you have adequate health insurance coverage to protect your savings from being depleted by medical costs. Regularly review your health insurance and update it as needed to ensure comprehensive coverage.

Reviewing Your Financial Plan

Financial planning is not a one-time activity. Regularly reviewing and adjusting your financial plan is essential to ensure it remains aligned with your goals and market conditions. Life events, such as marriage, childbirth, or job changes, may necessitate adjustments to your plan.

Engaging a Certified Financial Planner

A Certified Financial Planner (CFP) can provide personalized advice tailored to your unique situation. Their expertise can help you optimize your investments, manage risks, and achieve your financial goals. Engaging a CFP ensures you have a professional guiding your financial decisions.

Empathy and Understanding

We understand that managing finances and planning for the future can be overwhelming. Your dedication to securing your family’s financial future is commendable. Seeking professional guidance to navigate these complexities can provide peace of mind and help you make informed decisions.

Genuine Compliments

Your proactive approach to evaluating your financial plans at a young age is commendable. This foresight will benefit you and your family in the long run. By exploring various investment options and seeking expert advice, you are on the right path to securing a robust financial future.

Systematic Withdrawal Plan (SWP) in Mutual Funds

A Systematic Withdrawal Plan (SWP) allows you to withdraw a fixed amount from your mutual fund investments regularly. This can provide a steady income stream while keeping the remaining funds invested. An SWP is an effective way to manage your mutual fund investments for regular income. It helps in mitigating the risk of market volatility and ensures a disciplined approach to withdrawals.

Advantages of SWP

Provides a regular income stream.
Keeps the corpus invested for potential growth.
Tax-efficient compared to lump sum withdrawals.
Flexible withdrawal amounts and frequency.
Implementing an SWP in your mutual fund investments can help you generate the desired monthly income while keeping your investment intact for future growth. It is a practical approach to manage your retirement income needs.

Final Insights

Considering inflation, the assured sum of Rs 40,23,000 may not be sufficient in the long term. Diversifying your investments to include actively managed mutual funds, term insurance, and other avenues can provide better financial security and growth. Engaging a Certified Financial Planner (CFP) for personalized advice ensures your financial plan aligns with your goals. Regularly reviewing and adjusting your financial plan is crucial to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Asked by Anonymous - Oct 14, 2024Hindi

Money

68 yrs,1.3 lacs pension,fd 63lacs,mf - 38 lacs,own home ,pension 1.3 lacs,medically covered 5 lacs family pack.How do I beat the inflation

Ans: At 68 years old, your financial position appears strong. You have Rs 1.3 lakh monthly pension, Rs 63 lakh in FDs, Rs 38 lakh in mutual funds, and own a home. Your family is medically covered with a Rs 5 lakh policy.

You’re already ahead in terms of stability. Let’s now look at how to beat inflation and secure your future further.

?

Impact of Inflation on Your Corpus
Inflation erodes the purchasing power of money. Even a 5% inflation rate can decrease the value of your corpus. Over time, the fixed returns from FDs may struggle to keep pace with rising costs. This is where your financial strategy needs adjustments.

Your goal is to maintain or increase your purchasing power.

?

Diversifying Away from FDs
While FDs offer safety, their returns are not keeping up with inflation. Currently, FD interest rates hover around 6-7%. With inflation rates often higher, the real return becomes negative.

Consider moving a portion of your FD corpus into more inflation-beating assets.

?

Balance Risk and Safety
At your age, safety is essential. But you can still afford some calculated risks for better returns. By diversifying into debt mutual funds or conservative hybrid funds, you can balance risk and reward.

These options offer better post-tax returns than FDs, while maintaining a certain level of safety.

?

Inflation-Beating Assets: Look Beyond FDs
Debt Mutual Funds: These funds provide slightly higher returns than FDs. They can help preserve capital with some growth. But be mindful of taxation, as LTCG and STCG on debt mutual funds are taxed according to your income slab.

Conservative Hybrid Funds: These funds invest in a mix of debt and equity. They offer moderate returns and lower risk. This could be a good step up from FDs in terms of inflation-beating.

Dividend Yield Funds: These funds focus on companies that pay high dividends. They can provide a regular income stream while offering some growth potential.

?

Mutual Funds: The Right Allocation for Inflation
You already have Rs 38 lakh invested in mutual funds. That’s a good start. But it’s essential to assess the type of mutual funds you hold.

Are these funds actively managed? If they are passively managed or index funds, they might not provide the best returns. Index funds merely track the market and may not outperform inflation significantly. Actively managed funds, on the other hand, give fund managers the flexibility to pick outperforming stocks.

?

Benefits of Actively Managed Mutual Funds
Actively managed funds can help you beat inflation. They offer:

Professional fund management.
Potential to outperform index funds.
Flexibility in market cycles.
This makes them a better choice for long-term growth compared to index funds. Also, it’s advisable to consult a Certified Financial Planner (CFP) to help manage these investments effectively.

?

Direct vs Regular Mutual Funds
If you are investing directly in mutual funds, you might be saving on the expense ratio. However, without the guidance of a Certified Financial Planner (CFP), you could miss out on critical market insights and timely portfolio adjustments.

Investing through a CFP ensures that your portfolio is regularly monitored, rebalanced, and aligned with your goals. This will help you not only beat inflation but also maximize returns.

?

Managing Medical Expenses
A Rs 5 lakh medical cover for your family is a good start. However, healthcare costs are rising rapidly. Medical inflation often outpaces general inflation.

Consider increasing your health cover or opting for a top-up plan to ensure your medical expenses don’t eat into your savings. A comprehensive family floater or senior citizen health plan can safeguard your wealth.

?

Inflation-Protected Income Strategies
Since you rely on your pension for regular income, it’s important to ensure this income keeps up with inflation. You should think of other strategies to protect your income, such as:

Systematic Withdrawal Plans (SWP): If you hold mutual funds, you can set up an SWP to receive a fixed amount monthly or quarterly. This ensures a steady income stream while your corpus continues to grow.

Dividend Income: If you have shares or mutual funds invested in high-dividend-paying companies, you can enjoy a regular dividend income. Dividends can help offset inflation.

Tax-Free Bonds: Although tax-free bonds offer lower returns, they provide safety and regular income. Their returns may not be high enough to combat inflation alone but are a stable option.

?

Rebalancing Your Portfolio
Regular rebalancing is crucial to stay ahead of inflation. As markets change, so should your investment strategy. Rebalancing ensures that your portfolio remains aligned with your goals and risk tolerance.

?

How Often Should You Rebalance?
Ideally, review your portfolio at least once a year. A Certified Financial Planner (CFP) can help with this. They will ensure your asset allocation remains appropriate and suggest timely adjustments based on market conditions.

?

Assessing Tax Implications
It’s important to understand how taxation can affect your returns. For equity mutual funds, the new taxation rules are as follows:

LTCG (Long-Term Capital Gains) above Rs 1.25 lakh is taxed at 12.5%.
STCG (Short-Term Capital Gains) is taxed at 20%.
For debt mutual funds, both LTCG and STCG are taxed as per your income tax slab. You need to factor in these taxes when planning your withdrawals and rebalancing.

?

Long-Term Strategy to Outpace Inflation
To beat inflation in the long term, focus on these strategies:

Increase Equity Exposure: Despite being retired, you can afford to have a small portion in equity. Equity funds have historically provided returns above inflation.

Reduce Dependence on FDs: Shift some of your FDs to other low-risk but better-return assets like conservative hybrid funds.

Diversify into Different Asset Classes: This includes debt mutual funds, bonds, and hybrid funds for stable returns.

Consult a CFP: Professional advice from a Certified Financial Planner (CFP) ensures that your portfolio is managed effectively to meet inflation challenges.

?

Final Insights: How to Safeguard Against Inflation
At 68, you’re in a solid position financially. Your home is paid off, and your pension provides a regular income. However, inflation can erode your purchasing power if not managed wisely.

To safeguard your wealth:

Diversify your portfolio away from FDs into more inflation-beating assets.
Focus on actively managed mutual funds to outpace inflation.
Use Systematic Withdrawal Plans (SWP) for a regular income from your investments.
Increase your medical cover to protect against rising healthcare costs.
Rebalance your portfolio regularly with the help of a Certified Financial Planner (CFP).
This approach will help you protect your corpus while continuing to grow your wealth.

?

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Latest Questions

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Nov 19, 2024Hindi

Career

Hello sir I am mbbs graduated from russia in 2020,n passed with my fmge exam in india in 2021, I want to ask if i want to practice medicine or work as doctor in uk ? Is it necessary for me to pass plab exam exam? Or if i get sponsorship from any uk i will be able to work there and simultaneously i will give plab exam?? Please guide me i m so confused?

Ans: Hi, I understand that you pursued a medicine course in Russia (a non-European country) and, since you are from India, you have completed the FMGE. Now you want to practice or work in the UK as a doctor?

Based on your question, you are eligible to practice in India after completing your internship (which you haven't mentioned, but I assume you have completed it). The FMGE is essentially a licensure exam for Indian students who have completed their medical studies abroad, so you are eligible to practice in India only.

If you want to practice medicine in the UK, you need to complete the PLAB test, as you are from outside the UK/Switzerland/European countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland).

You also inquired about sponsorship. Here is the information related to sponsorship for practicing medicine in the UK.
(Extracted from general medical council, uk org. )Applying for registration using sponsorship
If you apply through sponsorship, you will have to satisfy the sponsor that you possess the knowledge, skills and experience required for practising as a fully registered medical practitioner in the UK. Each sponsor has their own scheme which we have pre-approved. If you can satisfy the requirements of their scheme, they will issue you with a Sponsorship Registration Certificate (SRC) which you will need for your application with us. Please ensure this is a Sponsorship Registration Certificate for GMC registration, as we can’t accept UK visa sponsorship certificates for your application for registration.
Please note that a core part of all sponsors' criteria is that a doctor applying for an offer of sponsorship must have been engaged in medical practice for three out of the last five years including the most recent 12 months. If you cannot meet these minimum criteria, it is unlikely that you'll be able to supply sufficient evidence to support your application for sponsorship.
Doctors applying through sponsorship are required to demonstrate their English language skills by achieving our current minimum scores in the academic version of the IELTS test or the OET (medicine version).
• Alder Hey International Fellowship Scheme (Anaesthetics)
• Betsi Cadwaladr University Health Board - BCUHB IMG Sponsorship Scheme
• BAPIO Training Academy Ltd – BTA International Fellowship Scheme
• BAPIO Training Academy Ltd – International Training Programme for Postgraduate Doctors
• BAPIO Training Academy Ltd - BTA International Fellowship Scheme – Internal Medicine with interest in Oncology with MSc in Oncology
• Barking Havering and Redbridge University Hospitals NHS Trust - BHRUT Sponsorship Scheme for Overseas Doctors in Clinical Radiology
• Birmingham and Solihull Mental Health NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry (Birmingham)
• Birmingham Women’s and Children’s Hospital – Birmingham Women’s and Children’s International Medical Graduate sponsorship scheme
• Bradford District Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Cambridge IVF, Cambridge University Hospitals NHS Trust – IVF Senior Clinical Fellowship Scheme
• Cambridge University Hospital – Senior Clinical Fellowship Scheme in Intensive Care Medicine/Anaesthesia
• Canterbury Christ Church University
• Cumbria Northumberland Tyne and Wear NHS Psychiatry Fellowship Programme
• Derbyshire Healthcare NHS Foundation Trust - International Medical Fellowship Programme in Psychiatry
• Dudley Group NHS Foundation Trust
• East Lancashire Hospitals NHS Trust - Clinical Fellowship in Urology or Ophthalmology
• East Lancashire Hospital NHS Trust - Specialist Clinical Fellowship in Pain Management
• East London NHS Foundation Trust (ELFT) – ELFT Advanced International Fellowship in Psychiatry
• East Suffolk and North Essex NHS Foundation Trust – ICENI Centre Fellowships Programme
• Edge Hill University and Wrightington, Wigan and Leigh NHS Trust – International Training Fellowships in MCh programmes
• ENT UK – Royal College of Surgeons
• Essex Partnership University NHS Foundation Trust – EPUT Advanced Fellowship in Psychiatry
• Frimley Health NHS Foundation Trust – International Fellowship in Regional Anaesthesia combined with MSc in Principles of Regional Anaesthesia at the University of East Anglia
• Great Ormond Street Hospital International Fellowship Programme
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Critical Care
• Guy’s and St Thomas’ NHS Foundation Trust – International Clinical Fellowship Programme (ICFP)
• Guy's and St Thomas' Hospitals NHS Foundation Trust – Obstetrics and Gynaecology
• Guy’s and St Thomas’ NHS Hospitals Foundation Trust – Oncology Specialty Training
• Guy's and St Thomas' NHS Hospitals Foundation Trust – Specialty Training in Anaesthetics
• Harefield Hospital, Royal Brompton and Harefield NHS Trust – Anaesthesia and Critical Care
• Hertfordshire Partnership University NHS Foundation Trust
• Hull University Teaching Hospitals NHS Trust – International Fellows at Hull University Teaching Hospitals NHS Trust
• Humber Teaching NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Imperial College Healthcare NHS Trust – Emergency Medicine
• Imperial College Healthcare NHS Trust – Haematology
• Imperial College Healthcare NHS Trust – International Anaesthesia Trainees
• Imperial College Healthcare NHS Trust – Intensive Care Medicine
• Imperial College, London - Clinical Research
• King’s College Hospital NHS Trusts – International Critical Care Fellowship
• King’s College Hospital NHS Trusts – Paediatric Critical Care Fellowship
• Lancashire & South Cumbria NHS Foundation Trust - Psychiatry specialty Fellowship Scheme
• Lancashire Teaching Hospitals NHS Trust - Overseas Registrar Development and Recruitment (ORDER)
• Leeds Teaching Hospitals NHS Trust – International Fellowship Programme
• Leicestershire Partnership NHS Trust – International Medical Fellowship Programme in Psychiatry
• Lincolnshire Partnership NHS Foundation Trust – CESR Fellowship in Psychiatry or Sponsored Fellowship in Psychiatry
• Lysholm Dept of Neuroradiology – National Hospital for Neurology and Neurosurgery, UCL
• Manchester University NHS Foundation Trust – International Fellowship Programme
• Midlands Partnership NHS Foundation Trust
• Ministry of Defence – International Military Clinical Fellowships
• Modality Partnership - Modality Primary Care International Fellowship Scheme
• NAViGO Health and Social Care CIC – International Medical Fellowship in Psychiatry
• NHS England, East of England - East of England International Office GMC Sponsorship
• NHS Fife – CESR Fellowship Programme in Psychiatry
• NHS Grampian – Psychiatry CESR Fellowship Programme
• NHS Grampian – Multi-specialty SAS Fellowship
• NHS Wales Shared Services Partnership (NWSSP) – All Wales International Medical Recruitment Programme
• Norfolk and Suffolk NHS Foundation Trust (NSFT) - Advanced Clinical Fellowship in Psychiatry
• North Lincolnshire and Goole NHS Foundation Trust (NLAG) Sponsorship Programme
• Northampton General Hospital – Clinical Fellowship in Regional Anaesthesia
• Northampton General Hospital NHS Trust - International Clinical Fellowship in Regional Anaesthesia, Vascular Anaesthesia, or Peri-operative Medicine
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme
• Northamptonshire Healthcare NHS Foundation Trust – International Clinical Fellowship Scheme (Psychiatry)
• Northern Care Alliance – NCA International Medical Fellowship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford Eye Hospital
• Oxford University Hospitals NHS Foundation Trust – Oxford Intensive Care Medicine (OxICM) Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – Oxford University Hospitals Sponsorship Scheme
• Oxford University Hospitals NHS Foundation Trust – The Oxford International Neonatal and Paediatric Fellowship Programme
• Rotherham Doncaster and South Humber NHS Foundation Trust - Sponsored International Fellowship Scheme in Psychiatry
• Royal College of Anaesthetists – Global Fellowship Scheme (Anaesthesia or ICM)
• Royal College of Anaesthetists – MTI Scheme
• Royal College of Emergency Medicine
• Royal College of Obstetricians and Gynaecologists – MTI Scheme
• Royal College of Ophthalmologists
• Royal College of Paediatrics and Child Health – International Paediatric Sponsorship Scheme
• Royal College of Paediatrics and Child Health – MTI Scheme
• Royal College of Pathologists
• Royal College of Physicians of Edinburgh
• Royal College of Surgeons of England
• Royal College of Physicians of London
• Royal College of Physicians and Surgeons of Glasgow
• Royal College of Psychiatrists – MTI Scheme
• Royal College of Radiologists – Clinical Radiology
• Royal College of Radiologists – Clinical Oncology
• Royal College of Radiologists – RCR Specialty Training Sponsorship Scheme
• Royal College of Surgeons of Edinburgh
• Royal Devon and Exeter NHS Trust
• Royal Papworth Hospital NHS Foundation Trust – Senior Clinical Fellowship Programme in Anaesthesia and Critical Care
• Royal Wolverhampton Trust – Clinical Fellowship Programme
• Sheffield Children’s NHS Foundation Trust - Rotational Clinical Fellows in Paediatrics, Trauma and Orthopaedic International Fellows, and Subspeciality Fellows in Paediatrics
• Sheffield Health and Social Care NHS Foundation Trust - International Medical Fellowship in Psychiatry
• Somerset NHS Foundation Trust – Somerset Overseas Doctors Sponsorship Scheme
• Somerset NHS Foundation Trust – Psychiatry Overseas Doctors Sponsorship Scheme
• South Warwickshire University NHS Foundation Trust - GMC Multispecialty Sponsorship Scheme
• South West Yorkshire Partnership NHS Foundation Trust – International Fellowship in Psychiatry
• Southmead Hospital, North Bristol NHS Trust – International Obstetrics and Gynaecology Training Programme
• St Bartholomew’s Hospital, Barts Health NHS Trust – St Bartholomew’s Critical Care Fellowship
• St George’s University Hospitals NHS Foundation Trust – International Anaesthetics Fellowship Programme
• St George’s University Hospital NHS Foundation Trust (Dr Nirav Shah) – International Intensive Care Medicine Trainees
• St George’s University Hospitals NHS Foundation Trust – International Emergency Medicine Trainees
• Surrey and Borders Partnership (SABP) NHS Foundation Trust – International Psychiatric and Community Paediatrics Sponsorship Scheme
• Tees, Esk and Wear Valleys NHS Foundation Trust – International Psychiatric CESR or SAS Fellowship
• University College London Hospitals NHS Foundation Trust, Department of Critical Care – Clinical Fellowship Critical Care and Perioperative Medicine
• University Hospital Birmingham NHS Foundation Trust - International Training Fellowship Programme
• University Hospitals Birmingham NHS Foundation Trust - UHB LED Fellowship Programme
• University Hospitals Bristol and Weston NHS Foundation Trust – Bristol Children's Hospital International Fellowship Scheme
• University Hospitals Bristol and Weston NHS Foundation Trust - Department of General Internal Medicine at Weston General Hospital
• University Hospitals Coventry and Warwickshire NHS Trust
• University Hospitals of Leicester NHS Trust - Postgraduate Clinical Fellowship Programme
• University of Buckingham – Master of Medicine
• University of Buckingham – Master of Surgery
• University of Chester and Cheshire and Wirral Partnership NHS Trust – International Training Fellows Psychiatry
• University of Hertfordshire – Professional Doctorate in General Internal Medicine (Clinical MD) Programme
KINDLY NOTE: If your sponsor is not on this list then you cannot apply using sponsorship.
If you have any further questions, please visit the GMC website for more information.

WISH YOU ALL THE VERY BEST.

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Aug 02, 2024Hindi

Career

I’m mbbs final year student from Kathmandu university want pg medicine from UAE

Ans: You have provided very limited information. I understand that you are a student from Kathmandu University and wish to pursue higher education in medicine in the UAE. To provide a more accurate response, I need the following details:

What is your nationality? (Based on your nationality, I can check the relevant requirements from the health department regarding courses and internships).

Dr Nagarajan Jsk |183 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Dec 21, 2024

Asked by Anonymous - Dec 20, 2024Hindi

Career

Sir my son has 92 percentile in cat 2024..what are his scopes of admission.

Ans: Hi Sir,
You have provided very limited information to obtain the details. However, the percentile of the candidate will not solely determine the admission process. Other factors are also involved, including:

- Course
- Institution
- Caste
- Creamy layer
- Gender

But, there may be possibilities for admission to the following IIMs: IIM Visakhapatnam, Udaipur, Bodhgaya, Shillong, and Rohtak.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Asked by Anonymous - Dec 21, 2024Hindi

Money

Hi Sir, I follow your articles regularly and your detailed assessment is really awesome.I am 47yrs Male with wife, 20&18 years kids, elder one is in B.Tech and younger one is 12th. My wife is a home maker. Coming to financials. I have 4 houses including the one residing worth 10cr(total) and getting rental income of 70k per month, invested in stocks and MFs worth 60L, have foreign stocks of worth 1.7cr, accumulated pf around 1.3cr. I have farm lands worth 5cr. Have 1.2cr loan and salary of ~4L (net). current sips in equity 70k/month, have 5Cr term plan, health insurance for family 50L. How do I plan my retirement at 52-53years assuming 80 years life expectancy. Don't want to depend on kids and need regular income ~3-4L per month.

Ans: Asset Evaluation
Real Estate:
You own four houses worth Rs 10 crore, generating Rs 70,000 monthly rental income. This is a solid base for passive income. However, real estate can have fluctuating maintenance costs, tenant issues, and varying rental yields over time.

Stocks and Mutual Funds:
Your Rs 60 lakh investment in stocks and mutual funds is a commendable step. Active mutual funds offer professional fund management and can outperform index funds over time.

Foreign Stocks:
Your Rs 1.7 crore portfolio in foreign stocks adds geographical diversification. Monitor currency exchange fluctuations and global market trends.

Provident Fund (PF):
With Rs 1.3 crore in PF, this is a reliable retirement corpus. The fund provides fixed returns and tax benefits, adding stability.

Farm Lands:
Farm lands worth Rs 5 crore are an illiquid but valuable asset. They might not generate consistent income unless leased or developed.

Loans:
A loan liability of Rs 1.2 crore needs prioritised repayment. Focus on loans with higher interest rates first.

Insurance Coverage:
A Rs 5 crore term plan is robust. Your Rs 50 lakh health insurance is sufficient for unexpected medical emergencies.

Retirement Goals
You need Rs 3–4 lakh monthly for 27–28 years post-retirement.
The portfolio must generate steady, inflation-adjusted returns.
Action Plan for Retirement
Debt Management
Prepay High-Interest Loans:
Use a portion of your surplus income to prepay loans. This reduces interest outflow and increases your cash flow.

Avoid New Loans:
Focus on reducing existing liabilities instead of taking on new ones.

Portfolio Restructuring
Real Estate:
Retain essential properties. Sell underperforming or non-essential properties to reduce concentration in real estate. Invest proceeds in mutual funds or debt instruments for diversification.

Mutual Funds (MFs):
Increase SIPs in actively managed funds. They outperform direct funds due to guidance from Certified Financial Planners and MFDs. Regular funds offer better tracking and professional assistance.

Stocks:
Monitor direct equity investments closely. Consider reallocating underperforming stocks to mutual funds for better management.

Debt Instruments:
Invest in high-quality debt funds or fixed-income securities for stability. These instruments balance equity volatility and ensure steady returns.

SIP Strategy
Increase SIPs from Rs 70,000 to Rs 1 lakh/month.
Allocate 70% to equity funds for long-term growth.
Invest 30% in debt funds for stability and liquidity.
Emergency Fund
Maintain a 12-month expense reserve in liquid funds or fixed deposits.
This covers unexpected expenses without disturbing investments.
Income During Retirement
Systematic Withdrawal Plan (SWP)
Use SWPs in mutual funds to generate regular income.
Withdraw 6–8% annually from your mutual fund portfolio for a steady income stream.
Rental Income Optimisation
Review property rents regularly.
Invest part of rental income in equity or debt mutual funds for compounding.
Dividend Stocks
Retain high-dividend-yield stocks for regular income.
Reinvest surplus dividends for long-term growth.
Tax Efficiency
Equity Funds Taxation:
Long-term gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.

Debt Funds Taxation:
Both short- and long-term gains are taxed per your income slab.

Real Estate Capital Gains:
Use exemptions under Sections 54 or 54F to save tax on property sales.

Inflation Protection
Allocate 60–70% of your portfolio to equity investments.

Equity provides inflation-adjusted returns over time.

Debt funds and fixed instruments safeguard against equity market volatility.

Estate Planning
Draft a will to allocate assets transparently among family members.
Use nomination and joint ownership to avoid legal complications.
Consider a family trust for farm lands to avoid disputes.
Periodic Review
Review your financial plan every six months.
Adjust investments based on market conditions, goals, and needs.
Consult a Certified Financial Planner regularly for updates.
Finally
A well-diversified portfolio ensures financial independence post-retirement. Focus on debt repayment, portfolio balance, and tax-efficient withdrawals. Your assets can comfortably generate Rs 3–4 lakh monthly income, adjusted for inflation.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Kanchan Rai |444 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 21, 2024

Question by Kevin - Dec 19, 2024Hindi

Relationship

I am the eldest sibling in our families and aged 51. Normally, whenever anyone in the family has a problem - financial, mental, psychological, issue with people or anything else, they come up to discuss with me and share. Well, many would say I am lucky as people look up to me when they are in any kind of a problem. But that is not the case. Sadly no one is around with whom I can discuss or even think to share my issues, my problems. I do not have any friends. Sadly, yes, that is a fact and at my age, I dont expect that here we have a culture where we can get to making friends, at least the kind of friends with whom you can confide, share your feelings, problems. I tried and failed. Maybe because I am introvert or maybe I am too cautious. To make it more complicated, I dont work in the regular kind of job. I am a lone person who works as a freelance from home. This limits my outreach when it comes to interacting with real people. I have clients, business contacts, but I cannot get personal with them. It will never be a good choice. My wife is busy with her job + we do not have any relation beyond the daily matters related to household and it has been more than 10 years now that we live this way. Tried to sort out things with her but she just does not have time and interest (after all who wants to add on to tensions, stress). My daughter is after all my daughter - I cannot share these with her, and definitely at 10 she is too young to be one to discuss such stuff. I am not sure how far this issue can be fixed but I am hopeful to find some path here.

Ans: Dear Kevin,
Starting small can be helpful. Consider connecting with people through shared interests or hobbies, either online or in person, where the pressure to immediately open up is minimal. Online communities, local meetups, or volunteer activities can create low-stakes opportunities to connect with like-minded individuals. The goal isn’t to instantly find someone to confide in but to slowly build a sense of belonging and companionship.

Your relationship with your wife appears to be another significant source of emotional distance. While her lack of interest in deep conversations may seem like a barrier, it’s worth exploring other ways to reconnect—perhaps by spending time together in shared activities or revisiting moments that once brought you closer. Sometimes, relationships stuck in routines benefit from new experiences or even professional counseling to navigate the underlying dynamics.

Regarding your daughter, while it’s clear she cannot shoulder your emotional burdens, she can still be a source of joy and connection. Investing time in activities with her can provide a sense of fulfillment and grounding that counters loneliness.

Above all, remember that reaching out for professional support, such as therapy, is not a sign of weakness but an act of self-care. A therapist can provide a safe space to express your feelings and help you develop strategies to foster deeper connections and manage emotional isolation.

You deserve to feel supported and connected, and even if the journey to finding that seems long, every step you take toward opening up or seeking out others is a move toward a more fulfilling and less lonely existence.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Nov 22, 2024Hindi

Money

My Question is for New Tax Regime for Financial Year 2024 – 25. Total gross Income is Rs.9 lakhs and along with that income from share / stock trading i.e short term gains of Rs. 1 lakh. Could you please help me advise if what would be the tax liability?

Ans: 01. Considering your Income of Rs.9.00 lakhs as business income & Rs.1.00 lakh as STCG on securities, without any tax savings, your tax liability would be around Rs.62,400.00 in New tax regime. If we opt for the old tax regime, your tax liability would be much more than this.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Question by SA - Nov 11, 2024Hindi

Money

I got a residential property through will from my mother,,property is 30 years old and i am planning to sell it, in that case i am going to get Rs 165lacks,, what will be the tax implication and how to avoid the same kindly advise i am 55 years old married man with a daughter

Ans: 01. In this case, you would be subjected to LTCG (Long Term Capital Gain) tax.
02. To work out LTCG, you should reduce its Cost from the Sale proceeds (Rs.165.00 lakhs).
of property, which was costed to your mother.
03. However, following details may help you to assess your tax liability.
Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
04. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
05. To avoid tax, you may invest in purchase of some house property. Exemption available would be minimum of Cost of new house property or the LTCG, which ever is less.
06. You have the option to purchase Capital Gain Bonds of NHAI etc., for tax saving.
07. Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 19, 2024Hindi

Money

Hello Sir, I worked in a Pvt Ltd company from 2006 to 2011, and they had their own PF trust. The company was later sold off to another firm. I still haven't withdrawn the my PF amount. How will i be able to do that. I have the PF number and ESP number. Since this was before 2011 , my UAN is not linked to this account. How will i be able to retrieve my PF amount that is still stuck here.

Ans: Kindly keep in touch with your previous employer (present owner of the company), in this connection. There should not be any problem in getting your PF amount, except certain formalities/ forms to be submitted.
Most welcome for any further clarifications. Thanks.

T S Khurana |260 Answers |Ask -Follow

Tax Expert - Answered on Dec 21, 2024

Asked by Anonymous - Dec 21, 2024Hindi

Money

Dear Guru. I have inherited a property in Mumbai from my deceased father which was purchased in 1983 by him. If today i sell the property which is worth 2.60 Crs whats my capital gains tax and how will it be calculated

Ans: 01. In absence of exact figures, it is not possible to calculate your Capital Gains Tax. However, following details may help you to assess your tax liability.
02. Under present provisions of Income Tax Act, you may opt any of the options (Long Term
Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
03. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
04. Most welcome for any further clarifications. Thanks.

Ramalingam Kalirajan |7290 Answers |Ask -Follow

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

Question by Anil - Dec 20, 2024Hindi

Money

Top4 sips with 15k amount suggest me

Ans: Here’s an updated strategy for your Rs. 15,000 SIP allocation, replacing the sectoral/thematic fund with a small-cap fund for better long-term growth potential.

Suggested SIP Allocation (Rs. 15,000)
Large-Cap Fund

Allocation: Rs. 4,000/month
Objective: Stability and steady growth by investing in India’s top 100 companies.
Why Choose: Provides consistent returns and low volatility in your portfolio.
Flexi-Cap Fund

Allocation: Rs. 4,000/month
Objective: Diversified exposure across large, mid, and small-cap stocks.
Why Choose: Offers balanced risk and returns with flexibility during market cycles.
Mid-Cap Fund

Allocation: Rs. 3,500/month
Objective: Tap into the growth potential of medium-sized companies.
Why Choose: Higher returns with manageable risk compared to small caps.
Small-Cap Fund

Allocation: Rs. 3,500/month
Objective: Focus on fast-growing small-cap companies.
Why Choose: High-growth potential over the long term, though with higher volatility.
Why Include Small-Cap Funds?
Long-Term Growth: Small-cap companies have immense potential to grow significantly over time.
Diversification: Adds exposure to an underrepresented segment, complementing large and mid-caps.
High Returns: Potential for higher returns compared to other categories, albeit with higher risk.
Key Considerations
Investment Horizon: Stay invested for at least 7-10 years to mitigate short-term volatility.
Active Fund Management: Avoid direct or index funds to leverage professional expertise.
Regular Monitoring: Review fund performance periodically with a Certified Financial Planner.
Tax Implications
Equity Funds:
LTCG above Rs. 1.25 lakh/year taxed at 12.5%.
STCG (held less than 1 year) taxed at 20%.
Final Insights
This updated allocation ensures a mix of stability, moderate risk, and high growth. With consistent SIPs and periodic reviews, you can achieve robust wealth creation over the long term. A Certified Financial Planner can assist in optimising your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

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

Sign up

email

uname

mobile no

Country Code

Mobile number

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

Already have an account?

LOGIN

x