Every month i transfer 30k to my friend account and my friend return it after 15 day. My salary is taxable.my question do i need the pay the tax on this amount which is 3.6 lac

Ans: Hello Akshita
Chances are very slim in GMC. Please explore more options
Best of luck to you.
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Radheshyam

Ans: Thanks for communicating with us.

Ans: Hello dear.
Given your persistent attempts to achieve the minimum passing score in board exams over two consecutive tries, it may be wise to rethink your decision about pursuing the science track and preparing for the NEET exam. It could be beneficial to investigate other paths that might be more aligned with your future aspirations. Recommendation - It might be helpful to reach out to your school administration regarding the examination process for February 2026.
Best of luck to you.
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Radheshyam

Ans: Hello Sudarshan.
With a score of 105, your son has little opportunity to secure admission in a government college for Computer Science Engineering, but he can gain entry into a private college through the management quota. Numerous well-regarded colleges in Mumbai and Pune offer CSE programs. Unfortunately, we cannot specify a particular college at this time.
Best of luck to you.
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Radheshyam

Ans: You have shown good awareness in planning for early retirement. With a steady income of Rs. 3.2 lakh per month and Rs. 33,000 rent, your financial base is strong. You also have well-placed assets in mutual funds, PPF, FDs, and a medical reserve. Let us evaluate your position step by step and build a 360-degree plan to achieve Rs. 5 crore in 5 years.

Assessing Your Current Financial Strength

You are 40 years old and aim to retire in 5 years. So, time is short.

You have monthly income of Rs. 3.53 lakh including rent. This gives strong cash flow.

Your mutual funds value is Rs. 24 lakh. This is your main wealth builder.

You have Rs. 22 lakh in PPF. This is safe but less liquid.

You also have Rs. 20 lakh in FDs. This earns steady but lower returns.

You kept Rs. 10 lakh as medical reserve. That is wise and needed at your stage.

You have built a good base. But you now need to increase growth speed.

You have only 5 years. So, each rupee must work harder.

We need to review, rebalance, and optimise every investment.

Evaluate Gap Between Today and Target

You want Rs. 5 crore in 5 years. Today your total is Rs. 76 lakh.

That includes Rs. 24 lakh MF, Rs. 22 lakh PPF, Rs. 20 lakh FD, Rs. 10 lakh reserve.

A gap of Rs. 4.24 crore must be covered in 60 months.

This means very high monthly investments and return expectation.

Simple savings won’t be enough. Growth assets must take the lead.

But you also cannot take very high risk due to short time.

So, we must create a strong, balanced plan.

Mutual Funds – The Key Growth Engine

You already have Rs. 24 lakh in mutual funds.

This must be kept and grown. You should not withdraw from it.

Shift to regular plans via a Certified Financial Planner.

Avoid direct plans. They offer no guidance or behaviour support.

Regular plans through a qualified MFD with CFP can give better control.

Focus more on actively managed funds than index funds.

Index funds copy markets. No chance of outperformance.

Active funds aim to beat market. Fund manager’s skill helps.

Add equity-oriented hybrid funds for stability.

They offer both growth and protection in one place.

A Certified Financial Planner can help balance this.

Utilise Fixed Deposits Smartly

You have Rs. 20 lakh in FDs.

These give low returns. But they are liquid and safe.

Keep Rs. 5 lakh in FD as emergency money.

Rest Rs. 15 lakh can be used for step-wise transfer to mutual funds.

Use STP from debt fund to equity fund over 12-18 months.

This reduces market entry risk.

FD interest is taxable. Mutual funds give better post-tax returns.

PPF – Let It Continue Quietly

You have Rs. 22 lakh in PPF.

Keep it untouched till maturity.

Do not count it for retirement corpus.

Use it only after age 60 if needed.

PPF gives safety and tax-free returns.

Boost Monthly Investments with Surplus

You earn Rs. 3.2 lakh salary and Rs. 33,000 rent.

Use this income wisely over next 5 years.

Target to invest Rs. 1.5 lakh to Rs. 1.8 lakh monthly.

Start with this target from now itself.

Split this into SIPs in flexi cap, mid cap and hybrid funds.

SIP gives discipline and rupee-cost averaging benefit.

Revisit every 6 months with a Certified Financial Planner.

Medical Corpus – Keep It Safe

You have kept Rs. 10 lakh aside for medical needs.

Do not mix this with your retirement funds.

Also ensure health insurance is active with high sum insured.

Include a super top-up plan to enhance protection.

Asset Diversification is Critical

Avoid investing more in gold or real estate.

They are not suitable for short term wealth creation.

Gold gives poor long-term returns after tax.

Real estate is illiquid and cannot help monthly goals.

Stay focused on mutual funds and short-term debt tools.

Passive Income Can Also Help

You will stop working in 5 years.

So, build income from mutual fund SWP or rent.

You are already getting Rs. 33,000 rent.

Add more passive income from SWP after retirement.

A Certified Financial Planner can guide on setting up this flow.

Tax Efficiency Should Be Built-In

Equity MF gives tax-free gains till Rs. 1.25 lakh LTCG.

After that, it is taxed at 12.5 percent.

Short-term gains in equity MF are taxed at 20 percent.

Debt MF is taxed as per income tax slab.

So, use proper fund categories based on horizon.

Insurance Check-Up

You didn’t mention term insurance or health coverage.

Ensure you have Rs. 1 crore term cover for family safety.

Keep health insurance separate for you and spouse.

Depend on company group cover only is risky.

Also check if your rent property is insured.

Retirement Corpus Withdrawal Strategy

In 5 years, switch from SIP to SWP in mutual funds.

Build a 2-bucket strategy post-retirement.

Bucket 1 – for 5 years expenses in hybrid/debt funds.

Bucket 2 – rest of funds in equity for long-term growth.

This gives safety and returns both.

Behavioural Discipline is Most Important

Retirement planning needs patience and discipline.

Avoid chasing high return schemes or startups.

Stick to time-tested mutual fund strategies.

Keep emotions out. Take professional help.

Review every year and stay flexible.

Final Insights

You are doing many things right already.

With 5 years left, speed and focus are now key.

Shift surplus from FDs to mutual funds.

Increase SIP amounts. Review progress every 6 months.

Stay focused only on your 5 crore goal.

Avoid unnecessary asset classes like crypto or real estate.

Don’t touch PPF or medical reserve for retirement.

Take help from Certified Financial Planner for execution and monitoring.

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

Ans: You are 42 years old.

You are working in a Middle Eastern country.

You have two children in 10th and 8th standard.

Monthly income allows you to save Rs. 3 lakhs.

You are already investing Rs. 97,500 in SIPs.

Your total financial assets include:

PMS investments: Rs. 1.10 crore

Personal stock portfolio: Rs. 48.87 lakhs

Mutual fund portfolio: Rs. 50 lakhs

FD and savings: Rs. 15 lakhs

Rental income: Rs. 53,000 per month

Insurance:

Term insurance: Rs. 1 crore

ULIP: Rs. 1 crore

Health insurance: Rs. 15 lakhs (Star) + Rs. 10 lakhs (Care)

Let us now build a 360-degree strategy for the surplus Rs. 3 lakhs monthly.

Emergency Fund Planning
Maintain 12 months of total expenses as emergency fund.

Include school fees, household spends, travel costs, etc.

Rs. 25–30 lakhs can be parked as emergency reserve.

Use ultra-short debt mutual funds or sweep-in fixed deposits.

Ensure this money is highly liquid and safe.

Emergency fund gives mental comfort during uncertainty.

You may already have some allocation here from FDs.

Reassess and top up if needed.

Review and Reallocate ULIP
ULIP often has higher charges than mutual funds.

Returns also depend on insurance company performance.

These products combine investment with insurance.

Mixing both is not an efficient way to grow wealth.

If ULIP is not recent, assess current surrender value.

If ULIP performance is weak, consider surrender.

Redeploy proceeds into mutual funds via monthly STP.

This improves transparency, flexibility and performance tracking.

Mutual Fund Expansion
You are already investing Rs. 97,500 monthly in SIP.

Increase mutual fund SIP to Rs. 2 lakhs monthly.

Choose mix of large cap, multi cap, mid cap funds.

Use actively managed funds via Certified Financial Planner.

Avoid index funds due to these reasons:

No downside protection during market fall

No active rebalancing

Rigid allocation with no flexibility

Underperformance during sideways markets

No fund manager intelligence in stock selection

Actively managed funds help generate alpha over index.

They allow periodic fund review and course correction.

Invest through regular plans via qualified professionals.

Avoid direct funds unless you have full-time expertise.

Regular funds offer human support, reviews, discipline.

PMS and Stocks Evaluation
Rs. 1.10 crore in PMS is significant.

Ensure PMS is benchmarked and evaluated yearly.

Look for consistency and reasonable risk profile.

Some PMS schemes have higher drawdowns.

Discuss risk appetite with your Certified Financial Planner.

Similarly, your stock portfolio is Rs. 48.87 lakhs.

Review holdings for concentration and duplication.

Avoid investing fresh money in direct stocks now.

Instead, shift focus to mutual funds for safer diversification.

Children’s Education Corpus Planning
Higher education for 2 children in next 5–8 years.

Target corpus should be Rs. 60–80 lakhs.

Allocate Rs. 40,000–50,000 monthly for this goal.

Use a dedicated mutual fund with balanced exposure.

Choose moderate-risk funds to avoid volatility.

Rebalance yearly as goal approaches.

Shift to ultra-short debt funds two years before use.

This ensures safety from market downturn.

Retirement Planning Focus
You are currently 42.

Retirement target should be Rs. 6–7 crore corpus minimum.

Allocate Rs. 50,000 monthly for this goal.

This can be via actively managed mutual funds.

Include large cap and flexi cap funds for long term.

Plan to continue till age 55 or beyond.

Track this goal annually with performance reports.

Don't rely on property sale or pension alone.

Focus on creating a liquid retirement corpus.

Monthly Surplus: Recommended Allocation
Rs. 3 lakh surplus should be split as follows:

Rs. 2 lakh in mutual fund SIP (active, regular plans)

Rs. 50,000 for education corpus (goal-based funds)

Rs. 50,000 towards retirement portfolio

Review allocations annually with a Certified Financial Planner.

Rebalance based on asset performance and goals.

Taxation Considerations
New capital gains tax rule applies:

For equity mutual funds:

LTCG above Rs. 1.25 lakh taxed at 12.5%

STCG taxed at 20%

For debt mutual funds:

Both LTCG and STCG taxed as per income slab

ULIP maturity is tax-free only if premium is below cap.

FDs are taxable at slab rate.

Stocks attract STT and capital gains taxes.

Keep detailed record of transactions and redemption years.

Plan systematic withdrawals for tax efficiency.

Insurance Assessment
Term insurance of Rs. 1 crore is good.

You may increase to Rs. 2 crore based on liability.

ULIP insurance should not be part of your coverage.

Health insurance Rs. 25 lakhs combined is decent.

Ensure it covers NRI and India both if needed.

Add global health cover if settling abroad later.

Real Estate: No More Exposure Suggested
You already have rental income from existing property.

Do not add more real estate.

Avoid tying more money into illiquid assets.

Focus on market-based, liquid financial instruments.

Risk Management Tips
Maintain a clear goal-wise investment structure.

Set up SIPs in different goals to track separately.

Monitor PMS and stock volatility quarterly.

Use automatic STP from liquid fund to equity fund.

Don’t chase high returns or unregulated investments.

Avoid peer-to-peer lending and crypto assets.

Discuss investment changes only with a Certified Financial Planner.

Finally
Your financial base is strong and structured.

With Rs. 3 lakh monthly surplus, you are in a powerful position.

Prioritise long-term goals like education and retirement.

Avoid over-concentration in direct stocks or PMS.

Grow your mutual fund SIP and link to goals.

Eliminate underperforming products like ULIPs if needed.

Let your Certified Financial Planner review your total portfolio annually.

Focus on liquidity, diversification, and simplicity in all decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Understanding Your Current Financial Situation

Your monthly salary is Rs 1.25 lakh with 10% annual increment.

You pay Rs 55,000 as EMI for a Rs 55 lakh home loan over 20 years.

Your flat is rented at Rs 15,000 per month.

Your effective income after rent and deductions is Rs 1.4 lakh.

You invest Rs 1 lakh annually in a ULIP for your daughter.

Savings and mutual fund investments have paused due to EMI burden.

Your situation is common among salaried officers with home loans. Let’s explore ways to maximize savings and meet your Rs 50 lakh target.

Loan Management and EMI Optimization

High EMI is restricting your savings capacity.

Review if prepayment or partial loan refinancing is possible to reduce interest burden.

Increasing EMI to reduce tenure is good but may affect liquidity.

Consider using increments or bonuses to make lump-sum prepayments.

Smaller tenure reduces interest, increasing net savings over time.

Avoid loan restructuring that increases tenure or lowers EMI without interest benefits.

Reviewing Your ULIP Investment

ULIPs combine insurance and investment but have higher charges.

Rs 1 lakh per year in ULIP may not give optimal investment returns.

Assess surrendering the ULIP once the lock-in period is over.

Reinvest surrender proceeds into mutual funds via MFD to optimize returns.

Mutual funds provide better liquidity, flexibility, and cost efficiency.

Maintain term insurance separately for risk cover, not ULIP.

Restarting and Maximizing Mutual Fund Investments

Mutual funds can help grow wealth with moderate risk.

Restart monthly SIPs with affordable amounts without straining your budget.

Increase SIP amount annually with your salary increments.

Prefer diversified and balanced funds managed by professionals (MFD).

Avoid direct funds if not monitoring regularly; professional advice helps.

Balanced funds reduce volatility compared to pure equity.

Budgeting and Expense Control

Track monthly expenses carefully.

Prioritize savings by treating them as non-negotiable expenses.

Avoid lifestyle inflation despite salary increments.

Use rent income wisely; consider increasing rent after contract expiry.

Reduce discretionary spending to free up funds for SIPs and prepayments.

Emergency Fund and Insurance

Maintain an emergency fund of 6 months expenses in liquid instruments.

Continue adequate health and term insurance coverage.

Do not divert emergency funds to investments.

Investment Time Horizon and Goal Setting

Your 10-year goal is achievable with disciplined investing.

Growth comes from systematic investments and reinvestment of returns.

Avoid impulsive withdrawals; stay invested for long-term gains.

Tax Planning Benefits

Use tax-saving instruments wisely within your investment portfolio.

Utilize deductions under relevant sections for investments and loan interest.

Efficient tax planning increases your effective savings.

Final Insights

You have the capacity to grow Rs 50 lakh in 10 years with a focused plan. Manage your loan efficiently, consider surrendering ULIP for better alternatives, restart and increase SIPs gradually, control expenses, and maintain insurance and emergency funds. Consult a Certified Financial Planner regularly for adjustments.

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

Ans: Planning early for children’s education is very wise.

Your son is 11 years old. Daughter is 3.5 years old.

MBBS is one of the costliest education choices in India today.

Even if they choose another path, having a solid fund helps.

Let’s create a complete 360-degree plan for both kids' education.

Understanding the Education Timeline
Your son has 6–7 years until college begins

Your daughter has 13–14 years to reach higher education

Professional courses like MBBS, law, architecture are very expensive

Even normal graduation and post-graduation now cost in lakhs

Private MBBS colleges can cost Rs. 1 crore or more

Government MBBS colleges cost less, but seats are very limited

You must plan for the highest cost scenario now itself

Why You Must Start Planning Immediately
Education inflation is very high — around 9% to 11% annually

Rs. 20 lakh today may become Rs. 45–50 lakh in 10 years

If you delay planning, SIP amounts will become too high later

Loans may be needed if you don’t plan early now

Education loans create pressure on the child and family

Starting now helps you avoid such burdens later in life

Setting Target Corpus for Each Child
Let’s assume you want to be prepared for MBBS costs

For your son, target around Rs. 50 lakh by age 18

For your daughter, target around Rs. 75 lakh by age 18

These numbers can cover private or government MBBS as per selection

If they choose another stream, this fund will still support them

Being overprepared is always better for children’s education

Asset Allocation Strategy for Education Planning
You need a mix of growth and safety for these goals

Use equity mutual funds for higher returns over long term

For son’s goal, add short-term hybrid debt portion after 3 years

For daughter’s goal, you can continue full equity for 7–8 years

Avoid RDs and FDs for long-term goals — they reduce wealth

Don’t invest in real estate for children’s future — low liquidity

Keep each child’s goal in separate mutual fund portfolios

Monthly Investment Needed Based on Timeline
For your son: you have 6–7 years to build Rs. 50 lakh

For your daughter: you have 13–14 years for Rs. 75 lakh

You will need to save in two different SIPs with different durations

A certified financial planner can help calculate SIP amounts accurately

Start as early as possible with even small monthly investments

Investment Types You Should Use
1. Regular Mutual Funds with Active Fund Management

Don’t use index funds — they have no human decision-making

Index funds copy the market, so they fall when the market crashes

Children’s future cannot depend on passive products

Use actively managed funds with lower downside risk

These offer better growth and smart handling in bad markets

2. Avoid Direct Mutual Funds

Direct funds give no guidance or review support

Most investors in direct plans stop SIPs during volatility

Wrong fund selection can damage the full education plan

Use regular plans through a Certified Financial Planner and MFD

They ensure right schemes, tax planning and rebalancing

Paying for guidance is safer than losing lakhs in poor fund choices

3. Use Child-Specific Fund Categories

Some funds are made specifically for child education goals

They have lock-ins and defined maturity timelines

These ensure money is used only for the child’s future

You can use a portion of SIP in such schemes for discipline

This avoids early withdrawal and keeps the money intact

Review of Common Mistakes to Avoid
Starting late and then investing too aggressively

Choosing FDs or insurance plans for children’s education

Not monitoring SIP growth and pausing during market crashes

Using education loans at the last minute with no plan

Keeping child’s fund in savings account or RD

Stay away from insurance-cum-investment schemes for this goal

If You Hold LIC, ULIP or Insurance-Based Investments
If you have any ULIP, traditional LIC or child plans

Please surrender those and reinvest into mutual funds

They give low returns and have poor liquidity and flexibility

ULIPs have high charges and maturity restrictions

LIC returns are often below inflation over long term

Switching now can double your fund value by the time child enters college

How to Manage Two Different Education Timelines
Your son’s corpus is required much earlier than daughter’s

Start two separate SIPs: one for son, one for daughter

For son, build equity corpus now and shift to hybrid after 3–4 years

For daughter, build full equity corpus over next 10 years

Don’t mix both goals — this creates confusion and stress

Label the SIPs clearly so you never stop them accidentally

Tracking them separately builds better focus and accountability

What If Child Studies Abroad or Does Not Choose MBBS
If your child goes abroad, cost could be higher than MBBS

This fund will still help with tuition and living costs

If they choose commerce or arts, you’ll have surplus money

You can reinvest surplus for marriage or other goals

Planning with the highest-cost goal ensures full readiness

Periodic Review of Your Plan is Important
Every 12 months, review fund performance and SIP progress

See if you are on track for target corpus for each child

Make corrections in fund type, amount or timeline if needed

A Certified Financial Planner can help with this annually

Financial planning is not “once done, forget forever”

Don’t Depend on Real Estate for Children’s Education
Real estate has poor liquidity and unpredictable returns

You cannot sell it fast during admission season

Children’s education fund must be easily accessible

Property prices don’t rise regularly like equity mutual funds

Keep education planning completely separate from property investments

Don't Use RDs or FDs for Long-Term Education Goals
FDs give 6–7% returns and are fully taxed

Inflation in education is around 9–11%

So your real return becomes negative in long term

RDs are worse due to monthly compounding restrictions

Mutual funds are more tax-efficient and inflation-beating

Avoid short-term products for long-term goals like education

What Happens If You Delay Saving by 3–4 Years
Monthly SIP amount will need to be 2x to reach the same goal

You may need to cut expenses or break long-term funds later

Loans or credit card usage may increase for fees

You may be forced to skip daughter’s SIP due to money pressure

Delaying saving puts double pressure on future income

How to Start Immediately and Stay Consistent
Set up SIPs on a fixed date — same as salary credit date

Don’t pause SIPs during market dips — they help you accumulate more units

Increase SIP amount by 10% every year

Label SIPs with child name — this adds emotional discipline

Track fund values every 6 months for confidence

This gives clarity, consistency and peace of mind

Taxation Planning for Withdrawals Later
Equity mutual funds above Rs. 1.25 lakh profit are taxed at 12.5%

Short-term gains are taxed at 20%

Plan withdrawal in staggered way to reduce tax impact

Use SWP (Systematic Withdrawal) method in final year

Your Certified Financial Planner can design this in final stage

Finally
You have the right mindset to prepare your children’s future.

MBBS or any career path — your role is to stay financially ready.

Start two SIPs separately — one for each child’s education need.

Avoid index funds, direct plans, and insurance-based products.

Use mutual funds with active management via a Certified Financial Planner.

Let your SIPs grow quietly, while your children grow confidently.

This is the most loving gift you can give them.

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

Ans: Hello Nayan
Unable to predict about a particular name of IISER. But she has chance to get admission to IISER
Best of luck to you.
Follow me if you like the reply. Thanks.
Radheshyam