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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 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 - Jun 19, 2024Hindi
Money

I earn 75000 cash in hand + 9000 nps monthly deduction monthly i have around 21 lakhs in my nps account I save 12500 each per month in sukanaya Samrudi accoun of my two daughters invest around 15000 monthly in diffrent SIPs since 1 years. Ihave also brought stocks wroth 1 lakhs .i am 40 year old and will retire after 20 years . i own a house and have no loan till date i also have ULIP of hdfc 10000 per month and LiC of 16000 per year. What else should i do to secure my childs future needs

Ans: Firstly, let's appreciate your disciplined approach to savings and investments. You are already investing in various financial instruments like Sukanya Samriddhi Accounts, SIPs, stocks, NPS, and insurance. This diversified approach is a great start. You have no loans, which is commendable and gives you more room to save and invest for future needs.

Evaluating Your Insurance Needs

You mentioned having a ULIP with a premium of Rs 10,000 per month and a LIC policy costing Rs 16,000 per year. While insurance is crucial, combining investment and insurance might not be the best strategy. ULIPs often come with high charges that can eat into your returns. Similarly, traditional LIC policies may offer lower returns compared to other investment options. It might be beneficial to consider surrendering these policies and reinvesting the proceeds into more efficient investment avenues.

Pure term insurance is often recommended. It provides high coverage at a low cost. Consider evaluating your insurance needs based on your current financial responsibilities and future goals. A Certified Financial Planner can help you determine the right amount of coverage required.

Enhancing Your Investment Strategy

You are already investing Rs 12,500 each per month in Sukanya Samriddhi Accounts for your daughters. This is a great choice for securing their education and marriage needs, given its attractive interest rate and tax benefits.

Your Rs 15,000 monthly investment in SIPs is also commendable. SIPs in equity mutual funds can provide good returns over the long term due to the power of compounding and rupee cost averaging. However, ensure you are investing in funds with a strong track record and managed by experienced fund managers.

Considering Education and Marriage Goals

Education and marriage are two significant financial goals for your children. Planning early for these goals can reduce financial stress in the future.

Child Education Plan: Consider investing in child education plans which are specifically designed to cater to future educational expenses. These plans often provide a combination of savings and insurance benefits.

Dedicated Mutual Fund Portfolio: Create a dedicated mutual fund portfolio for your children’s education and marriage. Choose funds that align with the timeline and risk profile of these goals. Equity funds can be considered for long-term goals, while debt funds can be chosen as the time horizon decreases.

Systematic Transfer Plans (STPs): As you approach the goal timelines, systematically transfer your investments from equity to debt to reduce risk. STPs help in gradually moving your money to safer avenues, ensuring capital protection.

Building an Emergency Fund

An emergency fund is crucial to cover unforeseen expenses without disrupting your financial plan. Typically, an emergency fund should cover 6-12 months of living expenses. Since you have no loans and a stable income, this fund can provide additional security.

Liquid Funds or Bank Savings Account: An emergency fund should be easily accessible. Consider keeping it in a high-interest bank savings account or liquid mutual funds.

Replenish Regularly: If you dip into your emergency fund, make it a priority to replenish it as soon as possible.

Tax Planning and Benefits

Maximizing tax benefits can help you save more. Currently, you are utilizing tax-saving instruments like NPS, Sukanya Samriddhi Accounts, and insurance policies.

Section 80C Investments: Continue investing in instruments that qualify for deductions under Section 80C, such as PPF, EPF, ELSS, etc.

National Pension Scheme (NPS): Contributions to NPS are eligible for additional deductions under Section 80CCD(1B). It’s a tax-efficient way to save for retirement.

Retirement Planning

Retirement planning should be a priority. You have Rs 21 lakhs in your NPS account, which is excellent. Ensure you regularly monitor and rebalance your NPS investments to align with your risk appetite and market conditions.

Diversified Portfolio: Maintain a diversified portfolio that includes a mix of equity, debt, and other asset classes. This helps in balancing risk and returns.

Regular Reviews: Periodically review your retirement plan to ensure it’s on track to meet your goals. Adjust your contributions and asset allocation as necessary.

Health Insurance

Adequate health insurance is crucial to protect against medical emergencies. Ensure you have a comprehensive health insurance plan that covers your entire family.

Adequate Coverage: Evaluate your current health insurance to ensure it provides adequate coverage for major illnesses and hospitalization expenses.

Top-Up Plans: Consider top-up or super top-up plans to enhance your existing coverage at a lower cost.

Estate Planning

Estate planning ensures that your assets are distributed according to your wishes and provides financial security for your family.

Writing a Will: Draft a will to clearly outline the distribution of your assets. This helps in avoiding disputes and ensuring your children’s future is secure.

Nomination and Beneficiaries: Ensure all your financial accounts and insurance policies have updated nominations. This ensures a smooth transfer of assets.

Financial Education for Children

Teaching your children about financial literacy can prepare them for managing money responsibly in the future.

Simple Financial Concepts: Start with basic concepts like saving, budgeting, and the importance of investing.

Involve in Financial Planning: Involve your children in family financial discussions to give them practical exposure.

Reviewing and Adjusting the Plan

Financial planning is not a one-time activity. Regularly review your financial plan to ensure it aligns with your changing goals and life circumstances.

Annual Reviews: Conduct a thorough review of your financial plan at least once a year. Assess the performance of your investments and make necessary adjustments.

Life Changes: Adjust your financial plan to accommodate significant life changes such as job changes, additional income sources, or changes in family structure.

Consulting with a Certified Financial Planner

While you have a robust financial plan, consulting with a Certified Financial Planner can provide expert insights and personalized advice. They can help you optimize your investments, ensure adequate insurance coverage, and plan effectively for your children’s future.

Tailored Advice: A Certified Financial Planner can provide advice tailored to your specific financial situation and goals.

Comprehensive Planning: They can help create a comprehensive financial plan that covers all aspects of your financial life, ensuring a secure future for your family.

Final Insights

Your proactive approach to saving and investing is commendable. By fine-tuning your investment strategy, ensuring adequate insurance coverage, and planning for future goals, you can secure your children’s future needs effectively. Regular reviews and adjustments to your financial plan, coupled with expert advice from a Certified Financial Planner, will keep you on track to achieve your goals.

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 Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

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Dear Sir, I am 44 yrs old with wife and 2 kids of age 9&11.I have been investing my money into the following sectors over the last few years back. 1.LIC and SBI money back policies of 8.5L and will be mature in 2034. 2.Life cover for self of 50L has to pay till 2047 annually of 20K. 3.Max life ULIP plan SA 6L mature in 2031. 4.Family floater Health I surance of 5L 4.HDFC life click 2I combo plan invest of 9L 5.SSA till date for both children 1L each 5.SIP of 20K since last 4.5yrs monthly 6.SIP lumpsum of 1L invested in Axis medium cap fund invested 4yrs back My question is to secure my child education and retirement life after 55 yrs , corpus should be 2 Crore what else I have to do
Ans: It's commendable that you've been diligently planning for your family's future. Your commitment to securing your children's education and ensuring a comfortable retirement is truly admirable.

Considering your current investments, it's essential to evaluate if they align with your long-term goals. While your existing plans offer some protection and potential growth, diversifying your portfolio could provide added stability and growth potential. Have you explored avenues beyond traditional insurance policies and mutual funds?

Certified Financial Planners can offer personalized strategies tailored to your aspirations and risk tolerance. They can suggest options that balance growth potential with risk mitigation, guiding you towards achieving your desired corpus. Have you considered consulting one to fine-tune your financial roadmap?

Remember, the journey to financial security is not just about numbers—it's about ensuring peace of mind and enabling your loved ones to pursue their dreams. By proactively seeking guidance and exploring diverse investment avenues, you're laying a robust foundation for a fulfilling future. Keep nurturing your financial garden, and the seeds you sow today will bloom into a prosperous tomorrow.

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Ramalingam Kalirajan  |7741 Answers  |Ask -

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

Asked by Anonymous - Jul 01, 2024Hindi
Money
Hi Sir, myself Pavani. My age is 34 years, I have a daughter who is 2 year old. My monthly salary is 50000. We don't have any property. I have 10 lac FD, I have insurance sum assured worth of 5 lac which will meture in 6 years . MF 1 lac, SSY account for my daughter have opened till now have 1 lac in that. Have opened Pradhan mantri pension scheme for my retirement planning. SIP 5k investing from past 10 months. I want to secure my and my daughter's future. Kindly suggest.
Ans: First, congratulations on your efforts to plan for your and your daughter's future! At 34, you have a steady monthly salary of Rs. 50,000 and a variety of existing investments. You have a 10 lakh FD, a 5 lakh insurance policy maturing in 6 years, 1 lakh in mutual funds, 1 lakh in a Sukanya Samriddhi Yojana (SSY) account for your daughter, and you're investing Rs. 5,000 per month in a SIP. Additionally, you’ve opened a Pradhan Mantri pension scheme for your retirement planning. Let’s build on this solid foundation to achieve your financial goals.

Setting Clear Financial Goals
Establishing clear financial goals is crucial. Your primary goals may include:

Securing your daughter’s education.
Building a substantial retirement corpus.
Ensuring adequate insurance coverage.
Creating an emergency fund.
By focusing on these goals, we can create a comprehensive investment strategy.

Creating a Diversified Investment Plan
Emergency Fund
An emergency fund is essential for financial security. It should cover 6-12 months of your monthly expenses. With a monthly expense of Rs. 50,000, aim for an emergency fund of Rs. 3-6 lakh. Your 10 lakh FD can act as your emergency fund, but consider moving a portion to a high-yield savings account for better accessibility.

Insurance Coverage
Ensure you have adequate insurance coverage for both life and health. A sum assured of 5 lakh is insufficient. Consider term insurance with a higher sum assured, covering at least 10-15 times your annual income. This will provide financial security to your daughter in case of any unforeseen event. Additionally, ensure you have comprehensive health insurance for yourself and your daughter.

Investment in Mutual Funds
Equity Mutual Funds
Investing in equity mutual funds can provide high returns over the long term. Allocate a portion of your monthly SIP towards diversified equity funds. These funds are managed by professionals and have the potential for significant growth. Given your current SIP of Rs. 5,000, consider increasing it as your salary grows.

Debt Mutual Funds
Debt mutual funds are less risky and provide steady returns. They invest in fixed-income securities like bonds and government securities. Allocate a part of your investment to debt funds for stability and moderate growth.

Systematic Investment Plan (SIP)
Your current SIP of Rs. 5,000 per month is a great start. SIPs help in averaging out the cost of investments and benefit from the power of compounding. Here’s a suggested allocation:

Equity Funds: Rs. 3,000 per month
Debt Funds: Rs. 2,000 per month
As your income increases, aim to gradually raise your SIP contributions.

Sukanya Samriddhi Yojana (SSY)
The SSY account for your daughter is an excellent initiative. It provides attractive interest rates and tax benefits. Continue contributing to this account regularly. Aim to maximize the annual contribution limit of Rs. 1.5 lakh to benefit from the compounded interest over the years.

Pradhan Mantri Pension Scheme
The Pradhan Mantri Pension Scheme is a good start for retirement planning. However, it’s essential to diversify your retirement investments. Alongside the pension scheme, invest in mutual funds and PPF (Public Provident Fund) for a balanced retirement portfolio.

Benefits of Professional Guidance
Certified Financial Planner (CFP)
A Certified Financial Planner can help you navigate your financial journey. They offer personalized advice, considering your financial goals and risk tolerance. A CFP can help you select the right mutual funds, insurance policies, and other investment options.

Personalized Advice
CFPs provide tailored financial advice. They consider factors like your income, expenses, goals, and risk appetite. This ensures your investments align with your financial objectives.

Avoiding Common Pitfalls
High-Risk Investments
Avoid high-risk investments like direct equities or speculative ventures. These can offer high returns but come with significant risks. Stick to diversified mutual funds for balanced growth.

Index Funds
Index funds simply mimic market indices. While they have lower management fees, actively managed funds can provide higher returns. Professional fund managers can make strategic decisions to outperform the market.

Direct Mutual Funds
Direct mutual funds may seem attractive due to lower costs. However, investing through a CFP ensures professional guidance. This maximizes your returns and aligns your investments with your financial goals.

Long-Term Financial Planning
Projecting Future Needs
Estimate your future financial needs, including your daughter's education and your retirement expenses. Consider factors like inflation and lifestyle changes. This helps in setting clear targets for your savings and investments.

Regular Reviews
Regularly review your investment portfolio to ensure it stays on track. Market conditions change, and so should your investment strategy. Consult your CFP to make necessary adjustments based on performance and goals.

Reinvesting Matured Funds
When your insurance policy matures in 6 years, reinvest the Rs. 5 lakh in mutual funds. This will significantly boost your investment corpus. Choose a mix of equity, debt, and hybrid funds to balance risk and returns.

Benefits of Mutual Funds
Professional Management
Mutual funds are managed by professional fund managers. They have the expertise to select the best stocks and bonds, ensuring optimal returns. This professional management is crucial for maximizing your investments.

Diversification
Mutual funds offer diversification, spreading your investment across various assets. This reduces risk and ensures stability. A diversified portfolio is key to balanced growth and risk management.

Compounding Returns
Investing in mutual funds through SIPs leverages the power of compounding. The returns earned are reinvested, generating further returns. This significantly boosts your investment growth over time.

Financial Discipline
Budgeting
Create a monthly budget to track your income and expenses. This helps in identifying areas where you can cut costs and allocate more towards investments. Financial discipline is key to achieving your goals.

Avoiding Unnecessary Expenses
Limit unnecessary expenses and focus on essential spending. This ensures more funds are available for investments, accelerating your wealth creation and securing your and your daughter's future.

Emergency Fund
Maintain an emergency fund to cover unforeseen expenses. This prevents you from dipping into your investments. An emergency fund ensures financial stability and peace of mind.

Staying Informed
Regular Updates
Stay informed about your investments by regularly checking their performance. Use financial news, market analysis, and updates from your CFP to make informed decisions. Knowledge is power in managing your investments.

Continuous Learning
Educate yourself about different investment options and market trends. Continuous learning helps in making better investment choices and understanding the financial landscape.

Feedback from CFP
Regularly seek feedback from your CFP regarding your investment strategy. They can provide valuable insights and recommendations based on market conditions and your financial goals.

Final Insights
Securing your and your daughter's future is achievable with disciplined investing and financial planning. By diversifying your investments, leveraging SIPs, and seeking professional guidance, you can effectively grow your wealth and achieve your goals. Stay informed, maintain financial discipline, and regularly review your portfolio to ensure it aligns with your objectives. Investing in a mix of equity, debt, and hybrid mutual funds will provide a balanced approach, ensuring both growth and stability.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

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

Asked by Anonymous - Jul 06, 2024Hindi
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Heloo I am 38 yrs old . I have a 2.5 yrs old and my wife and my parents . My salary is 1.13 lacs per month. Have 1 car loan of 6 lacs . My investment are as follows : 1. 8.64 lacs in MF which amounts to 15.9 lacs 2. LIC yearly 1 lac 3 . 1 term life insurance 4 . 1 ppf 1k monthly that amounts to 2.13 lacs as of now. 5 .1 NPS 2k monthly That amounts to 1.5 lacs if now . 6 . Emergency fund of 6 lacs . 7 . Supper annuation of 10 lacs. What to do more for future of my child and also for us in older age
Ans: I appreciate your detailed question. It's clear that you care deeply about your family's financial future. Let's explore how we can strengthen your financial position, ensure your child's future, and secure your retirement.

Current Investments Overview
You have diversified your investments, which is excellent. Here's a breakdown:

Mutual Funds: Rs. 8.64 lakhs, now worth Rs. 15.9 lakhs.
LIC: Annual premium of Rs. 1 lakh.
Term Life Insurance: This is crucial for your family's security.
PPF: Rs. 1,000 monthly, current value Rs. 2.13 lakhs.
NPS: Rs. 2,000 monthly, current value Rs. 1.5 lakhs.
Emergency Fund: Rs. 6 lakhs.
Superannuation: Rs. 10 lakhs.
You also have a car loan of Rs. 6 lakhs. Let's see how we can optimize these and plan for your child's future and your retirement.

Enhancing Your Child's Future
Your child is 2.5 years old, giving you about 15-20 years to save for education and other needs. Here's a plan:

Increase Mutual Fund SIPs
Your mutual fund investments have grown well. Increase your monthly SIPs in diversified equity mutual funds. This helps in accumulating a substantial corpus over time due to the power of compounding.

Education and Marriage Funds
Start two separate SIPs: one for education and one for marriage. Estimate the future costs and work backward to determine the SIP amount needed. Use an inflation rate of around 6-8% for calculations.

Strengthening Retirement Planning
You're 38 now, so you have about 22 years until retirement. Let's ensure you have a comfortable retirement.

Increase NPS Contributions
NPS is a good option for retirement. Increase your monthly contributions. This not only builds your retirement corpus but also provides tax benefits.

Boost PPF Contributions
PPF is a safe investment with decent returns. Increase your monthly contributions to maximize the Rs. 1.5 lakh annual limit. This will provide a tax-free corpus on maturity.

Consider Retirement-Focused Mutual Funds
Invest in retirement-focused mutual funds. These funds are designed to provide long-term growth and stability. Diversify across different categories like large-cap, mid-cap, and hybrid funds for balanced growth.

Addressing Your Car Loan
Your car loan of Rs. 6 lakhs is a liability. Here are some steps to manage it:

Accelerated Repayment
Consider making extra payments towards your car loan. This reduces the interest burden and helps in clearing the debt faster.

Balance Transfer
If your current loan interest rate is high, explore balance transfer options to a lower interest rate loan. This saves on interest costs.

Optimizing Existing Investments
Let's review your existing investments for better returns and efficiency.

Review LIC Policy
LIC policies often provide lower returns compared to mutual funds. Evaluate the surrender value and consider switching to mutual funds for better growth.

Emergency Fund
Your emergency fund of Rs. 6 lakhs is adequate. Ensure it's kept in a liquid instrument like a high-interest savings account or a liquid mutual fund.

Superannuation Fund
Your superannuation fund is a great asset. Ensure you're aware of its benefits and how it fits into your overall retirement plan.

Creating a Comprehensive Financial Plan
Asset Allocation
Diversify your investments across different asset classes. This reduces risk and enhances returns. A balanced portfolio could include equity, debt, gold, and alternative investments.

Regular Review
Review your financial plan annually. Adjust based on changes in your life, market conditions, and financial goals.

Risk Management
Ensure you have adequate life and health insurance. Your term life insurance is good. Review the sum assured periodically. Ensure you have a family floater health insurance plan covering all members.

Estate Planning
Plan for the distribution of your assets. Draft a will to ensure your assets are distributed as per your wishes. Consider setting up a trust if needed.

Final Insights
Financial planning is a continuous process. By taking proactive steps now, you ensure a secure future for your family. Increase your SIPs, manage your liabilities, and regularly review your investments. This will help you achieve your financial goals effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

Asked by Anonymous - Jul 08, 2024Hindi
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Hi Sir, i am 55, earning around 14L PM , am the single earner in my family. I have a daughter who is 14 year and doing her higher Secondary. I hold the following assets MF- 1.7 cr Shares - 1.6cr Two properties worth - 1.6 cr + land worth - 35 L in cr mkt value. Getting a rental income of 25K from one property and the other one 20K which i give to my monther for her exp ( she lives with me only) still i give her Insurance in HDFC Life which will give a guaranteed return of 27 L when my daughter gets into graduation. + life cover of 1.25 cr which am servicing. + gold and few liquid assets worth 15L . With monthly expenses of around 75K hardly saving much - managing some 20K pm in MF . how to plan for my child studies and a cushion as retirement corpus. As am working in a pvt co, don't see any retirement age as of now.
Ans: Assessing Your Current Financial Situation
You have a robust portfolio with diversified assets. Let's look at your current holdings:

Mutual Funds: Rs 1.7 crore
Shares: Rs 1.6 crore
Properties: Rs 1.6 crore
Land: Rs 35 lakh
Rental Income: Rs 45,000 per month (Rs 25,000 and Rs 20,000)
Guaranteed Return from Insurance: Rs 27 lakh
Life Cover: Rs 1.25 crore
Gold and Liquid Assets: Rs 15 lakh
Monthly Expenses: Rs 75,000
Monthly Savings: Rs 20,000 in Mutual Funds
Planning for Your Child’s Education
Your daughter is 14 years old, and higher education expenses are approaching. Here's a structured plan:

Guaranteed Insurance Return: The Rs 27 lakh guaranteed return will be a significant help when she starts her graduation. This ensures you have a secured fund for her education.

Mutual Funds and Shares: Continue to monitor and adjust your investments in mutual funds and shares to ensure they align with her education timeline. You can consider a systematic withdrawal plan (SWP) from mutual funds when required.

Building a Retirement Corpus
To ensure a comfortable retirement, let's outline your strategy:

Rental Income: Continue to utilize the Rs 45,000 monthly rental income. Consider renting both properties if selling is not a viable option. The rental income can supplement your monthly expenses post-retirement.

Mutual Funds and Shares: With a total of Rs 3.3 crore in mutual funds and shares, ensure a balanced allocation between equity and debt. As you near retirement, gradually increase the proportion of debt to reduce risk.

Monthly Savings: Increase your monthly savings if possible. If you can increase your investment in mutual funds from Rs 20,000 to Rs 50,000 per month, it will significantly boost your retirement corpus.

Liquid Assets and Gold: Keep a portion of your assets liquid for emergencies. You can also leverage gold if needed during retirement.

Insurance and Risk Management
Your current life cover of Rs 1.25 crore is substantial, but review your insurance needs periodically to ensure it remains adequate. Health insurance is also crucial, especially as you age.

Investment Strategy
Mutual Funds: Continue investing in diversified mutual funds. Consider consulting a Certified Financial Planner (CFP) to evaluate the performance of your current funds and explore better-performing options.

Equity Investments: Stay invested in high-quality stocks. Periodically review your portfolio to ensure it is well-diversified and aligned with your risk tolerance.

Key Recommendations
Increase Savings: Aim to save and invest more than Rs 20,000 monthly if possible. This will help you reach your retirement goals faster.

Rental Income: Consider renting out both properties if feasible. This can provide a stable income stream during retirement.

Education Fund: Utilize the guaranteed return from your insurance policy for your daughter's education expenses.

Balanced Portfolio: Gradually shift from equity to debt as you approach retirement to reduce risk.

Final Insights
Your financial foundation is strong. With careful planning and adjustments, you can achieve your retirement goals and provide for your daughter's education. Regularly review and rebalance your portfolio to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1470 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

Asked by Anonymous - Jan 27, 2025Hindi
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Relationship
Anu mam, I am 21 about to graduate this year. So I am a single child and I just got to know that my parents are planning to separate. They are both seeing different people but none of them have cared to sit down and discuss this with me. I am old enough to make decisions. But I feel betrayed by my own parents. I don't have siblings or cousins with whom I can discuss this. I mean, what happens to me after my parents separate? Where will I stay? What about home? Both my parents are travelling or working late so we hardly spend time together at home to have a conversation. I have suggested several times that I want to talk but there is no response from either of them. There is always some urgent work to attend, some family event coming up and this gets brushed aside. I feel like I am not even their child any more. They have both mentally moved on... and I feel betrayed, lonely. I don't know what to do. Can you help?
Ans: Dear Anonymous,
I am sorry to hear that. It is never easy to understand when your parents are planning to separate and it leaves you with a lot of questions when left unanswered can lead to a very unsettled feeling.
Perhaps they are still wondering how to break the news to you. If they have been avoiding this topic, then it is evident that they are not ready to tell you or it's still in an awkward phase.
You are 21 and obviously there's no point hiding this from you anymore. Make a dinner plan outside of home where they will not be able to move about and cite urgent work etc. Mid-way through dinner, ask them...they may deny or one of them may walk out; but at least they know that you are aware and will want to talk about it eventually. The path to a conversation has opened then and then you can make a plan about how to go about it.

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Anu Krishna  |1470 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 31, 2025

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Me 38ki hu mera bf 28ka wo mujhse sucha pyar krta hai shaadi bi Krna hai usko but bola ki me 2cr kmalu tb krunga t shaadi usne ghr me baat bhi ni ki apne na mere ki confirm krde ki shaadi t krunga or sagai krle usne BTech science kri hai wo mera office me lga jha selry 18k hai but maine kha ki tum apni qualification me hisaab se khi or job krlo jha 50k mile taki tum mere ghr walo se shaadi ki baat kr sko humre riste ko 4saal ho gye hai but usko m bhoat smjhaya ki khi or job krlo set ho jaye but ni ki or is office me job krha jha 18k milre hai usko fir bolta hai ki me 2cr acount me ho tb me Shaadi krunga tumse but mere ghr wale pressure krhe hai alg or ye koi faisla ni lera hai me kya kru
Ans: Dear Tiya,
Uske paas tumse zyaada waqt hai umar ke hisaab se isiliye woh yeh bol paa raha hai. Woh galat nahin na tum galat ho. Dono apni apni jagah sahi ho.
Aapko apni life mein kya chahiye? Shaadi aur ek pariwaar? Toh aapko yahi sochna chahiye ki kya yeh aapka bf samajhta hai aur kya is waqt woh yeh aapko de paayega. Kamaai ki baare mein bol rahaa hai woh; woh 2 Cr kitne saal aur lagenge? Kya aap intezaar karna chahoge? Agar nahin, toh is waqt woh bhi shaadi nahin karna chahte...toh aap unko majboor nahin kar sakte...Aaraam se soch vichaar kar lijiye aur ek nateeje par aana. Aap intezaar hi karte rahoge aur umar bhi nikla jaayega...

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

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Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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Money
I am 60 yrs old retired lady. I have 50 lakhs in mutual funds. Around 50 lakhs in equity. In cash I have 1 crore. How I should manage to get pension of Rs. 1 lakh per month because I have no pension from government. Please advice. Partially I should go in property investment.
Ans: You have Rs. 2 crore in investments. You need Rs. 1 lakh per month for expenses. Your goal is to create a stable and tax-efficient income. Let’s plan carefully.

Current Financial Position
Rs. 50 lakh in mutual funds.

Rs. 50 lakh in direct equity.

Rs. 1 crore in cash.

No government pension.

Goal: Rs. 1 lakh monthly income (Rs. 12 lakh per year).

Key Challenges
Your investments should last for 25+ years.

Inflation will increase expenses every year.

Fixed deposits and traditional plans may not keep up with inflation.

Real estate can lock funds and reduce liquidity.

Step-by-Step Financial Plan
1. Build an Emergency Fund
Keep Rs. 15 lakh in liquid funds or bank deposits.

This covers 12-18 months of expenses.

Avoid using emergency funds for investments.

2. Allocate Funds for Monthly Income
Keep Rs. 85 lakh in safe, income-generating investments.

Choose options that give regular and stable returns.

Returns should beat inflation but stay low-risk.

3. Invest for Growth and Wealth Protection
Invest Rs. 50 lakh in balanced mutual funds.

These provide growth and moderate risk.

Withdraw 4-5% yearly to support expenses.

4. Optimise Direct Equity Portfolio
Rs. 50 lakh in direct stocks needs review.

Retain only strong dividend-paying companies.

Shift risky stocks to safer mutual funds.

5. Tax-Efficient Withdrawals
Plan withdrawals to minimise tax liability.

Use long-term capital gains to reduce tax impact.

Avoid withdrawing large lump sums at once.

Why Real Estate is Not Ideal
Property investment reduces liquidity.

Rental income is uncertain and taxable.

Maintenance costs and legal issues can arise.

Selling property in emergencies can take time.

Final Insights
You can generate Rs. 1 lakh per month with smart planning.

Avoid locking money in real estate.

Diversify into stable income options.

Review investments every year for adjustments.

Consult a Certified Financial Planner for execution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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I am 40 year old, have 38 lakhs in FD, 60 lakh in EPF, 40 lakh in PPF, 30 lakh in Mutual fund and 10 lakh in NPS. Have own house and another house earning rent of rs 15000 per month. Monthly expenses is 1 lakh. Son is in class 7. Can I retire ?
Ans: You have built a solid financial base. Let's assess if early retirement is feasible for you.

Assessing Your Current Financial Position
You have Rs 38 lakh in Fixed Deposits (FD).
Your Employee Provident Fund (EPF) balance is Rs 60 lakh.
You have Rs 40 lakh in Public Provident Fund (PPF).
Your mutual fund investments total Rs 30 lakh.
Your National Pension System (NPS) corpus is Rs 10 lakh.
You own a second house generating Rs 15,000 per month in rental income.
Monthly Expense Requirement
Your monthly expense is Rs 1 lakh.
Annually, this totals Rs 12 lakh.
After rent income, you need Rs 10.2 lakh per year.
Your corpus should generate this amount without running out.
Key Retirement Considerations
1. Longevity of Your Corpus
You may live for another 40–50 years.
Your investments should last for this period.
A balanced approach is necessary to sustain wealth.
2. Inflation Impact on Expenses
Your current Rs 1 lakh per month will increase over time.
Inflation reduces the value of money.
Your investments must grow faster than inflation.
3. Education & Future Responsibilities
Your son is in Class 7 and will need higher education funds.
Higher education costs rise significantly over time.
You must set aside a separate fund for this.
4. Healthcare & Emergency Fund
Medical costs rise with age.
Health insurance is essential.
A dedicated emergency fund prevents financial stress.
Evaluating Your Passive Income Sources
Rental income of Rs 15,000 per month covers only a small portion of expenses.
Your existing assets must generate regular income.
Safe withdrawals should sustain your retirement.
Investment Strategy for a Secure Retirement
1. Equity Mutual Funds for Growth (40–50%)
Your corpus should continue to grow.
Equities provide long-term wealth creation.
Actively managed funds can beat inflation.
A mix of large-cap, mid-cap, and hybrid funds balances growth and safety.
2. Debt Instruments for Stability (30–40%)
FDs, EPF, and PPF provide safety.
Keep some funds in liquid debt instruments.
Target maturity funds and short-duration debt funds can provide regular income.
3. Systematic Withdrawal Plan (SWP) for Monthly Cash Flow
Instead of withdrawing lump sums, use an SWP strategy.
This ensures regular income without depleting capital fast.
It also provides tax efficiency.
4. Gold as a Hedge (5–10%)
Gold protects against economic fluctuations.
Consider Sovereign Gold Bonds (SGBs) for better returns.
SGBs also provide annual interest.
Insurance & Risk Management
Ensure you have term insurance for family security.
Maintain a comprehensive health insurance plan.
Keep a separate emergency fund for unexpected expenses.
Final Insights
Early retirement is possible but needs careful planning.
Your corpus must be structured for growth and stability.
Inflation and future expenses must be factored in.
Investment allocation should balance risk and liquidity.
Regular reviews are essential to keep your plan on track.
Would you like a detailed withdrawal strategy based on your exact needs?

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

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I am 42 staying in Pune with my wife and two daughters 7 years and 1 year old. I have 70 lakh in MF , 12 lakh in nps, 18 lakh in pf and 31 lakh in stocks. I have additional investment in 62 lakh in FD that is pledged to trade in derivatives through a consultant. Wife has physical gold worth 5 lakh. I have recently bought a land on loan and current liability is 25 lakh @8.5% ( total 70(land+construction)lakh is sanctioned for construction). My current expense is 1 lakh a month and i stay in rented house. My monthly income is 2.5 lakh from salary. Can I quit my job and move to my hometown in Ranchi. What is the financial plan if i want to quit.
Ans: You want to quit your job and move to Ranchi. Your current investments and expenses need careful planning. Let’s evaluate your financial situation.

Current Financial Position
Rs. 70 lakh in mutual funds.

Rs. 12 lakh in NPS.

Rs. 18 lakh in PF.

Rs. 31 lakh in stocks.

Rs. 62 lakh in FD (pledged for derivatives trading).

Rs. 5 lakh in wife’s gold.

Rs. 25 lakh loan at 8.5% interest (out of Rs. 70 lakh sanctioned).

Monthly salary of Rs. 2.5 lakh.

Monthly expenses of Rs. 1 lakh.

Staying in a rented house.

Key Challenges in Quitting Job
You need a stable income source after quitting.

Loan repayment should not burden your finances.

Derivatives trading involves high risk.

Relocation to Ranchi should not disrupt financial stability.

Step-by-Step Financial Plan
1. Build a Strong Emergency Fund
Keep Rs. 20 lakh as a buffer for 2 years of expenses.

Use FD or liquid mutual funds for this.

This ensures financial security after quitting.

2. Secure a Passive Income Source
You need at least Rs. 1 lakh per month in passive income.

This can come from investments, consulting, or business.

Rental income or dividends alone may not be enough.

3. Restructure Your Loan
Your land loan at 8.5% interest adds financial pressure.

Repaying Rs. 25 lakh from FD or stocks reduces the burden.

Avoid using risky derivative profits to pay loans.

4. Reallocate Investments for Stability
Reduce exposure to high-risk derivatives trading.

Convert Rs. 62 lakh FD into a mix of mutual funds and bonds.

Equity mutual funds can generate higher long-term returns.

5. Plan for Child’s Future
Your daughters are 7 years and 1 year old.

Set aside Rs. 25 lakh for education in safe investments.

Avoid blocking funds in low-return FDs.

6. Address Housing Needs
If moving to Ranchi, consider staying in a rented house initially.

Construction should not strain your savings.

Use part of your investments if you decide to build.

Final Insights
Quitting your job is possible but needs careful planning.

Ensure passive income before quitting.

Clear high-interest liabilities to reduce stress.

Invest wisely for long-term financial security.

Moving to Ranchi should not affect your financial freedom.

Consult a Certified Financial Planner for proper execution.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 30, 2025Hindi
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Hi team, I am working professional currently I received 10L lumsum amount from fd and lic can you please suggest where can I invest this amount for long term like 10-12 years, specifically for my kids any children education plan my 1st kid is 10 years old and 2nd is 1.5 yrs old ssy is alredy in place for both
Ans: Here’s a structured approach to investing your Rs 10 lakh lump sum for your children’s education over the next 10–12 years.

Assessing Your Financial Goals
Your primary goal is to secure funds for your children’s higher education.
Your elder child will need funds in approximately 8–10 years.
Your younger child will need funds in approximately 16–18 years.
Sukanya Samriddhi Yojana (SSY) is already in place for both children, which is a good step.
Key Investment Principles
Since the investment horizon is long, equity investments can provide higher returns.
Diversification across different asset classes ensures stability.
A mix of lump sum and systematic investments (SIP/STP) helps in managing risk.
Ensure liquidity for unforeseen expenses while keeping the majority of the funds in long-term instruments.
Allocating the Rs 10 Lakh Investment
1. Equity Mutual Funds (60–70%)
Actively managed equity mutual funds provide potential for higher growth.
Choose a mix of large-cap, mid-cap, and small-cap funds.
Large-cap funds provide stability, mid-cap and small-cap funds offer growth.
Consider splitting the lump sum into a Systematic Transfer Plan (STP) over 6–12 months.
This helps reduce market volatility risk.
2. Debt Mutual Funds (20–25%)
This ensures safety while still offering better returns than FDs.
Suitable for your elder child’s education needs in 8–10 years.
Short-duration debt funds or target maturity funds can be considered.
3. Gold Investment (5–10%)
Gold has historically been a hedge against inflation.
Consider Sovereign Gold Bonds (SGBs) for long-term appreciation.
SGBs also provide an additional fixed interest every year.
4. Fixed Income Instruments (10–15%)
Since you have LIC proceeds, check if any existing policies should be continued.
If any are underperforming, consider surrendering and reallocating to mutual funds.
Senior Citizen Savings Scheme (SCSS) or Post Office Monthly Income Scheme (POMIS) can be considered for your parents’ support if needed.
Systematic Planning for Education
Start a dedicated SIP from the debt portion for the elder child’s education.
Keep a mix of debt and equity to manage risk for the younger child.
By the time your elder child reaches college, start shifting funds to safer instruments.
Insurance & Contingency Planning
Ensure you have a sufficient term life insurance plan.
Health insurance should cover all family members.
Maintain an emergency fund with at least 6 months of expenses.
Final Insights
Equity investments can provide higher growth for long-term goals.
Debt investments provide stability and liquidity for short-term needs.
Diversification across asset classes ensures balanced risk management.
Systematic investments (STP/SIP) help manage market fluctuations.
Regular reviews every year will help in rebalancing based on market conditions.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 31, 2025Hindi
Money
I am 47 year old. Having 32 lakh in my PPF. 28 lakh in my wife's PPF.Having sukanya smruddhi of my 10 year old daughter 25 lakh. Having Nps 10.5 lakh. (Equity 50 remaining 50 % debt in nps). Just invested 28 lakh in banking and psu debt growth fund in 3 diffrent fund house. 70 lakh cash at bank. Wife house wife having equity mutual fund mix of large cap small cap and medium cap having 24 lakh current market value holding through broker. Wife is having 1.5 lakh in direct equity of mid and large cap bluechip.Wife is having NPS account for monthly pension of 5000 post retirement. Life insurance Endowment plan bharti axa elite advantage 10 lakh for 12 years primium 1 lakh for self.Insurance of daughter 10 lakh : 80,000 premium elite advantage policy. No loan. Goals: Education of daughter and marriage of daughter after 15 yearrequire 50 lakh. Want to purchase house 1 to 1.2 cr after 5 to 6 year.currently living in parental house. Retirement after 8 to 10 years -58 or 60 year. Current monthly expense 40,000 to 50,000. Yearly income varible from 3 lakh to 20 lakh depend upon consultancy work. Health insurance for family 10 lakh. Policy HDFC optima secure. No term plan. Please advice investment stratagy, for retirement and other goals.
Ans: Your financial position is strong, but you need a structured plan.

Understanding Your Current Financial Position
You are 47 years old and plan to retire by 58 or 60.

You have no loans, which is a great advantage.

Your PPF has Rs. 32 lakh, and your wife’s PPF has Rs. 28 lakh.

Your daughter’s Sukanya Samriddhi account has Rs. 25 lakh.

Your NPS balance is Rs. 10.5 lakh, with a 50:50 equity-debt mix.

Your wife has Rs. 24 lakh in equity mutual funds.

Your wife has Rs. 1.5 lakh in direct equity.

You recently invested Rs. 28 lakh in banking and PSU debt funds.

You have Rs. 70 lakh in cash in the bank.

Your wife’s NPS will give her Rs. 5,000 monthly after retirement.

You have an endowment plan with a Rs. 10 lakh sum assured, with Rs. 1 lakh annual premium.

You also have a similar Rs. 10 lakh policy for your daughter with an Rs. 80,000 premium.

Your annual income varies between Rs. 3 lakh and Rs. 20 lakh from consultancy work.

Your current monthly expenses are Rs. 40,000 to Rs. 50,000.

You have a Rs. 10 lakh family health cover through HDFC Optima Secure.

You do not have a term insurance plan.

Key Financial Goals
Daughter’s Education and Marriage: You need Rs. 50 lakh after 15 years.

House Purchase: You want to buy a Rs. 1 crore to Rs. 1.2 crore house in 5-6 years.

Retirement: You want to retire in 8-10 years while maintaining your current lifestyle.

Step 1: Restructure Your Insurance Policies
Your endowment plan is not a good investment.

The returns are low, and they don’t provide enough life cover.

Surrender these policies and reinvest in better options.

Buy a term insurance plan for at least Rs. 1.5 crore coverage.

This ensures your family’s financial security in case of any emergency.

Step 2: Optimize Your Cash Reserves
Keeping Rs. 70 lakh idle in a bank is not a good strategy.

Inflation will erode its value over time.

Maintain Rs. 10 lakh in liquid form for emergencies.

Invest Rs. 60 lakh in a balanced mix of debt and equity.

This will improve your long-term returns.

Step 3: Plan for Your Daughter’s Education and Marriage
You need Rs. 50 lakh after 15 years.

Sukanya Samriddhi Yojana (SSY) is a good start.

Continue contributions for tax-free returns.

However, SSY alone is not enough.

Invest Rs. 15,000 per month in high-growth assets.

This ensures you meet the target without stress.

Step 4: Investment Plan for House Purchase
You need Rs. 1 crore in 5-6 years.

Avoid putting all savings in a low-return debt fund.

Allocate 60% in safe debt instruments.

Invest 40% in high-quality large-cap equity mutual funds.

This balance will help you reach your goal faster.

Step 5: Retirement Planning Strategy
Your NPS balance is Rs. 10.5 lakh.

Increase equity exposure to at least 70%.

This will help in long-term growth.

Start SIPs of Rs. 50,000 per month in equity mutual funds.

This will help you build a strong retirement corpus.

Your wife’s Rs. 5,000 pension will not be enough.

Ensure she also invests for retirement growth.

Step 6: Secure Your Family with Health Insurance
Your Rs. 10 lakh health cover is good but may not be enough.

Healthcare costs are rising.

Consider adding a super top-up plan of Rs. 20 lakh.

This will protect your family from unexpected medical expenses.

Step 7: Increase Passive Income Sources
Your consultancy income is variable.

You must create stable income sources.

Invest in assets that generate regular returns.

Monthly income plans can be an option.

This ensures financial stability even if work income reduces.

Step 8: Reduce Risk in Your Wife’s Investments
Your wife’s Rs. 24 lakh mutual fund portfolio is spread across small, mid, and large caps.

Small caps are high-risk for a family’s primary corpus.

Shift some amount to safer investments.

Ensure she has a stable long-term investment plan.

Finally
Your financial position is strong but needs better structure.

Optimize your insurance policies for higher returns.

Invest idle cash wisely to grow wealth.

Plan separate strategies for each financial goal.

Focus on increasing stable income for retirement security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7741 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 31, 2025

Asked by Anonymous - Jan 31, 2025Hindi
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Money
I have 4 Crores in FD'S. Can you please advise me how to use that money so i can make atleast 10% PA after taxes..
Ans: You have Rs. 4 crores in fixed deposits. FDs are safe but give low returns. You want at least 10% per year after tax. Achieving this needs smart asset allocation.

Issues with Keeping Money in FDs
FD interest is fully taxable as per your tax slab.

If you fall in the 30% tax bracket, a 7% FD return reduces to 4.9%.

Inflation further erodes real returns.

FDs are not ideal for long-term wealth creation.

Step-by-Step Strategy for Higher Returns
1. Keep a Part in Debt for Stability
Keep Rs. 50 lakhs in short-term debt mutual funds for liquidity.

They give better tax efficiency than FDs.

You can withdraw anytime without a penalty.

These funds provide stable returns with lower risks.

2. Invest in Actively Managed Mutual Funds
Allocate Rs. 2.5 crores in actively managed equity mutual funds.

These funds outperform index funds over long periods.

They help in capital appreciation and wealth creation.

A mix of flexi cap, mid-cap, and small-cap funds is ideal.

3. Consider Hybrid Mutual Funds
Hybrid funds balance growth and stability.

Allocate Rs. 50 lakhs here for a mix of equity and debt.

These funds reduce volatility while providing steady returns.

Long-term taxation is also favourable.

4. Tax-Free Bonds for Fixed Returns
Allocate Rs. 50 lakhs in tax-free bonds.

These provide stable, tax-efficient income.

Government-backed bonds ensure safety.

Returns are lower than equity but higher than FDs after tax.

Expected Outcome from the New Portfolio
Equity mutual funds can give 12-15% long-term returns.

Debt and hybrid funds provide 6-9% with tax efficiency.

Tax-free bonds give stable tax-free income.

This mix ensures safety, liquidity, and wealth creation.

Why This Strategy is Better Than FDs
FDs give post-tax returns lower than inflation.

Mutual funds provide inflation-beating growth.

Tax-efficient debt options improve returns.

This plan balances risk and reward.

Final Insights
Keeping all money in FDs limits growth.

Diversifying into mutual funds and bonds improves returns.

A mix of equity, debt, and hybrid funds works best.

This approach helps in reaching 10% after-tax returns.

Investing through a Certified Financial Planner ensures proper fund selection.

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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