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

Investing Abroad While Planning for India Return - 6,000 Rupee SIPs to 2 Crore Rupees Goal?

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 28, 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
Prem Question by Prem on Nov 28, 2024Hindi
Listen
Money

Hi everyone, I'm Prem, a 21-year-old pursuing higher education abroad, planning to settle in India in 7-8 years. My goal is to beat the inflation & to accumulate at least 2 crore rupees over the next 15 or 20 years through monthly SIPs of 6,000 rupees for the initial 2 years, increasing to 8,000 rupees thereafter. I have a moderate-to-high risk tolerance(60/40 60-safe;40-risky) and am comfortable with market volatility. I'm seeking advice on a diversified investment strategy to achieve my goal, including fund recommendations and tax-efficient approaches. Any specific tips on maximizing returns and minimizing risk would be greatly appreciated.

Ans: It is inspiring to see a young investor like you with clear financial goals. Planning for Rs. 2 crore in 15-20 years through disciplined SIPs is achievable with the right approach. Here’s a detailed, 360-degree plan to align with your goals and risk profile.

Set a Strong Foundation
Goal Clarity: Your goal is to accumulate Rs. 2 crore. This is a long-term goal. The timeline allows you to leverage equity's compounding potential.

Investment Tenure: A 15-20 year horizon suits your moderate-to-high risk tolerance. This provides time to recover from market corrections.

Risk Tolerance: A 60/40 risk allocation (safe/risky) is balanced. It provides growth while limiting downside risks.

SIP Strategy
Start Gradually: Begin with Rs. 6,000 monthly for the first two years. Increase to Rs. 8,000 thereafter. Periodic increases (step-up SIPs) every year or two will help.

Allocation Split: Invest 60% in equity funds for growth and 40% in debt funds for stability. This aligns with your risk profile.

Equity Fund Allocation
Large and Mid-Cap Funds: These funds offer a blend of stability and growth. They are suitable for moderate risk-takers.

Flexi-Cap Funds: They provide diversified exposure across market caps, reducing concentration risk.

Small-Cap Funds: Allocate a smaller portion here. Small caps have higher growth potential but also higher volatility.

Debt Fund Allocation
Hybrid Funds: These funds maintain a balance between equity and debt. They are less volatile and provide steady returns.

Short-Duration Funds: Suitable for stable returns in volatile markets. These can be part of your low-risk portfolio.

Tax-Efficient Investments
Equity Funds: Hold for over one year to qualify for long-term capital gains (LTCG) tax benefits. LTCG above Rs. 1.25 lakh annually is taxed at 12.5%.

Debt Funds: Gains are taxed as per your income slab. Holding for over three years qualifies for indexation benefits.

Recommendations for Maximizing Returns
Step-Up SIPs: Increase your SIPs by 10% yearly. This small increment can significantly impact your corpus.

Diversification: Diversify across sectors, fund houses, and geographies. Avoid over-concentration in one segment.

Rebalancing: Review your portfolio every year. Shift funds to maintain the 60/40 equity-to-debt ratio.

Risk Management
Emergency Fund: Maintain six months’ expenses in a liquid fund. This ensures your SIPs continue during emergencies.

Term Insurance: Get a term plan covering 10-15 times your annual expenses. This protects your dependents financially.

Health Insurance: Opt for comprehensive health insurance to avoid draining your investments for medical needs.

The Disadvantage of Index Funds
Index funds often mimic market indices. However, actively managed funds offer better potential returns. Experienced fund managers can identify high-growth opportunities and avoid underperforming stocks.

Benefits of Investing through a Certified Financial Planner
Personalised Advice: Regular plans through a CFP offer tailored strategies. Direct funds lack professional guidance.

Portfolio Monitoring: CFPs monitor performance and suggest timely adjustments. Direct investors may miss this.

Holistic Planning: CFPs integrate your investments with your overall financial goals. This ensures alignment with life stages.

Tips for Achieving Rs. 2 Crore
Stay Invested: Avoid redeeming funds prematurely. Long-term discipline builds wealth.

Avoid Timing the Market: Focus on consistent investments instead of predicting highs and lows.

Leverage Compounding: The earlier you invest, the greater the compounding benefits.

Finally
Achieving Rs. 2 crore in 15-20 years is realistic. Stick to your SIPs, review your plan, and stay disciplined. Your vision, combined with a strategic approach, will help you beat inflation and achieve financial independence.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

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

Money
I am a 34-year-old individual with a balance of 1.75 crore INR in my savings account. I have no outstanding debts and am looking to invest this amount wisely. My investment goals are twofold: firstly, to secure 1 crore INR for my daughter's future when she turns 18, and secondly, to generate a monthly income to cover my expenses, which currently amount to 85,000 INR per month. I am willing to allocate my investment across different risk profiles as follows: 25 lakhs INR in high-risk investments, 50 lakhs INR in medium-risk investments, and the remaining 1 crore INR in moderate-risk investments. Could you please advise me on a comprehensive investment strategy considering my goals and risk profile? Specifically, I am seeking guidance on asset allocation, investment vehicles, and any other considerations to achieve both capital growth and income generation.
Ans: Thank you for sharing your detailed financial goals and risk profile. Let's create a comprehensive investment strategy tailored to your needs and preferences. Your primary objectives are to secure Rs 1 crore for your daughter's future and generate a monthly income of Rs 85,000.

1. Understanding Your Financial Goals and Risk Profile
Your investment goals are twofold:

Securing Rs 1 crore for your daughter's future when she turns 18.
Generating a monthly income of Rs 85,000 to cover your current expenses.
You are willing to allocate your investment across different risk profiles:

High-risk investments: Rs 25 lakhs
Medium-risk investments: Rs 50 lakhs
Moderate-risk investments: Rs 1 crore
This diversified approach helps balance potential high returns with stability and safety.

2. Asset Allocation Strategy
Asset allocation is crucial in achieving your financial goals. Here is a recommended strategy:

High-Risk Investments: Rs 25 Lakhs
High-risk investments have the potential for high returns but come with significant volatility. Consider the following options:

Equity Mutual Funds: These funds invest in stocks and have the potential for high returns. Choose actively managed funds with a good track record.

Stocks: Direct investment in stocks of well-researched companies. Focus on growth stocks in emerging sectors.

Sectoral Funds: These funds invest in specific sectors like technology or healthcare, which can offer high growth.

Medium-Risk Investments: Rs 50 Lakhs
Medium-risk investments offer a balance between risk and return. Consider these options:

Balanced Mutual Funds: These funds invest in a mix of equity and debt instruments, providing moderate growth with lower volatility.

Corporate Bonds: Investment-grade corporate bonds offer higher returns than government securities with moderate risk.

Hybrid Funds: These funds invest in a mix of equity and debt, offering a balanced approach to growth and income.

Moderate-Risk Investments: Rs 1 Crore
Moderate-risk investments prioritize safety while providing reasonable returns. Consider these options:

Debt Mutual Funds: These funds invest in government securities, corporate bonds, and other debt instruments, providing stable returns.

Fixed Deposits: Bank fixed deposits are safe and offer guaranteed returns, though the interest rates are lower.

PPF (Public Provident Fund): A long-term investment with tax-free returns and government backing, ensuring safety and moderate returns.

3. Investment Vehicles and Their Benefits
Equity Mutual Funds
Equity mutual funds are managed by professionals who invest in a diversified portfolio of stocks. They offer the potential for high returns over the long term. Actively managed funds tend to outperform passive index funds due to professional management.

Stocks
Direct investment in stocks can be rewarding but requires extensive research and monitoring. Investing in well-established companies with a strong track record can help achieve significant capital appreciation.

Sectoral Funds
Sectoral funds focus on specific industries with high growth potential. These funds can provide high returns if the chosen sector performs well but can also be volatile.

Balanced Mutual Funds
Balanced mutual funds provide a mix of equity and debt, balancing risk and return. They are suitable for medium-risk investors seeking growth with lower volatility.

Corporate Bonds
Corporate bonds offer higher returns than government securities and are less volatile than equities. Investing in high-rated bonds ensures moderate risk with steady returns.

Hybrid Funds
Hybrid funds invest in a combination of equity and debt, providing diversification and balanced growth. They are suitable for medium-risk investors.

Debt Mutual Funds
Debt mutual funds invest in fixed-income securities, offering stability and moderate returns. They are suitable for conservative investors.

Fixed Deposits
Fixed deposits are one of the safest investment options, providing guaranteed returns. They are ideal for risk-averse investors seeking stable income.

PPF (Public Provident Fund)
PPF is a long-term investment option with tax-free returns. It is backed by the government, ensuring safety and moderate returns.

4. Generating Monthly Income
To generate a monthly income of Rs 85,000, consider a combination of the following:

Systematic Withdrawal Plan (SWP): From your debt and balanced mutual funds, you can set up an SWP to withdraw a fixed amount regularly. This provides a steady income while keeping your principal invested.

Dividends from Equity Investments: Dividend-paying stocks and mutual funds can provide a regular income. However, dividends can fluctuate based on company performance.

Interest from Debt Investments: Fixed deposits, corporate bonds, and debt mutual funds provide regular interest income. This can be a reliable source of monthly cash flow.

5. Securing Rs 1 Crore for Your Daughter's Future
To secure Rs 1 crore for your daughter's future, focus on long-term growth investments:

Equity Mutual Funds and Stocks: Allocate a significant portion of the high-risk and medium-risk investments here. Over a long period, equities tend to outperform other asset classes.

Systematic Investment Plan (SIP): Continue or start SIPs in equity mutual funds. SIPs help in averaging out market volatility and build a substantial corpus over time.

Child-specific Mutual Funds: Consider investing in mutual funds designed for children's future needs. These funds have a lock-in period and provide disciplined savings.

6. Review and Rebalance Your Portfolio
Regularly reviewing and rebalancing your portfolio ensures it remains aligned with your goals and risk tolerance. Here are some steps to consider:

Annual Review: Evaluate the performance of your investments annually. Make adjustments based on changes in market conditions and your financial goals.

Rebalancing: Adjust the allocation between high-risk, medium-risk, and moderate-risk investments to maintain your desired risk profile.

Diversification: Ensure your portfolio is diversified across different asset classes to minimize risk and maximize returns.

7. Other Considerations
Emergency Fund
Maintain an emergency fund equivalent to 6-12 months of your expenses. This fund should be easily accessible and invested in liquid instruments like savings accounts or liquid mutual funds.

Tax Planning
Consider the tax implications of your investments. Opt for tax-efficient instruments and strategies to minimize your tax liability. ELSS funds offer tax benefits under Section 80C, while PPF provides tax-free returns.

Financial Education
Stay informed about financial markets and investment options. Continuous learning helps make better investment decisions. Consider consulting with a Certified Financial Planner (CFP) for personalized advice.

Conclusion
You have a substantial amount to invest and clear financial goals. A diversified approach across high-risk, medium-risk, and moderate-risk investments will help you achieve your objectives. Regularly review and rebalance your portfolio to stay on track. Prioritize your daughter's future and your monthly income needs while considering tax efficiency and emergency preparedness.

Investing wisely today secures your financial future and ensures you can achieve your goals with confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 30, 2024

Listen
Money
I am a 34-year-old individual with a balance of 1.75 crore INR in my savings account. As of now i do not have other investment also I have no outstanding debts and am looking to invest this amount wisely. My investment goals are twofold: firstly, to secure 1 crore INR for my daughter's future when she turns 18, and secondly, to generate a monthly income to cover my expenses, which currently amount to 85,000 INR per month. I am willing to allocate my investment across different risk profiles as follows: 25 lakhs INR in high-risk investments, 50 lakhs INR in medium-risk investments, and the remaining 1 crore INR in moderate-risk investments. Could you please advise me on a comprehensive investment strategy considering my goals and risk profile? Specifically, I am seeking guidance on asset allocation, investment vehicles, and any other considerations to achieve both capital growth and income generation.
Ans: With your substantial savings and clear goals, you're in a good position to craft a comprehensive investment strategy. Let's delve into a tailored approach.

For securing 1 crore INR for your daughter's future, a mix of moderate to low-risk investments could be ideal. Consider diversified mutual funds, fixed deposits, and possibly some portion in government schemes like PPF or Sukanya Samriddhi Yojana for her education fund. These avenues offer stability and reasonable returns over the long term.

To generate a monthly income of 85,000 INR, we need to focus on income-generating assets.Equity funds can indeed play a significant role in your investment strategy, especially for capital growth. Given your preference for equity, let's adjust the allocation accordingly.

For high-risk investments, you might consider allocating a substantial portion to diversified equity funds or sector-specific equity funds. These have the potential for higher returns over the long term but come with higher volatility.

In the medium-risk category, you can continue to diversify with a mix of balanced funds, which invest in a combination of equities and debt instruments. These can offer a balance between growth and stability.

For moderate-risk investments, you could include large-cap equity funds, which invest in well-established companies with stable earnings. Additionally, consider mid-cap and small-cap equity funds for potential higher returns, albeit with higher risk.

Remember, while equity funds offer growth potential, they also carry market risk. It's crucial to maintain a diversified portfolio across asset classes to mitigate risk.

Consulting with a Certified Financial Planner can help fine-tune your allocation and select the right equity funds based on your risk tolerance and investment horizon. By incorporating equity funds alongside other investment vehicles, you can pursue both capital growth and income generation effectively.

..Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 10, 2024Hindi
Listen
Money
Hello sir, I am 33 years old working as a software professional. I have a mothly SIPs that I started earlier this year of 30000 rupees which was divided into 10000 rs for ICICI Prudential bluechip fund direct growth large cap, 10000 rs for motilal oswal midcap and 5000 rs each in Quant small cap and Aditya birla sunlife PSU fund. Along with this I have couple of life insurance policies with LIC on my name and one each for my wife and kid altogether I'm paying premium of 3 lakhs per annum. I also invested in real estate and bought a land worth 40 lakhs. I'm planning for my retirement at the age of 45 and want to know best ways for investment to build my corpus and earn 2 lakhs per month from it post retirement which suffices my needs adjusting to inflation.
Ans: Your commitment to securing your financial future is commendable, and your portfolio reflects a mix of investments. Let's analyze your current strategy and chart a path towards your retirement goal.

Starting with your SIPs, allocating funds across different categories like large-cap, mid-cap, and small-cap indicates a balanced approach to risk and growth. However, it's essential to review your portfolio periodically to ensure it aligns with your changing goals and market conditions.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:

Advantages of Investing Through a Mutual Fund Distributor (MFD):

• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.


Your life insurance policies provide financial protection for your family, which is crucial. However, it's advisable to evaluate if the coverage meets your evolving needs and if there are more cost-effective options available.

Investing in real estate can be lucrative, but it comes with its own set of challenges like liquidity issues and market volatility. Considering your retirement goal, diversifying your investments beyond real estate might be prudent.

To achieve your retirement target of ?2 lakhs per month adjusted for inflation, you'll need a substantial corpus. Considering your age and retirement timeline, investing in a mix of equity, debt, and other asset classes is essential.

Since you're aiming for early retirement, focusing on growth-oriented investments with higher returns potential could be beneficial. Regular reviews with a Certified Financial Planner can help fine-tune your strategy and maximize returns while managing risks.

Additionally, exploring tax-efficient investment avenues like Equity Linked Savings Schemes (ELSS) and PPF can optimize your tax outgo and enhance your corpus over time.

Remember, building a retirement corpus requires discipline, patience, and a well-thought-out strategy. Stay committed to your savings plan and adapt to changes in your financial landscape.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

Money
Hi, I am 50 years old, single, with one sister, and I own my house. My job stability is uncertain, as it could last for 1, 2, or 3 years. I have secured ?30 lakhs in an FD as emergency funds, which can cover my monthly expenses of ?25,000. I am looking to invest ?40-50 lakhs into mutual funds over the next 3-4 years. My primary goal is to secure my future expenses while beating inflation. Please suggest me the suitable strategy to cover my future expenses, beat the inflation and wealth creation. • 40-50 lacs in Fix deposits. (To be deployed in mutual funds). • Medical Insurance 10 lacs base amount/65 lacs super top up. • 25 lacs invested in stocks. • 7.5 lacs in PPF (4000 Rs SIP every month). • 6 lacs NPS (approx.) (Want to get rid of the same due to its poor performance). • 5.5 lacs pension plan (ICICI) (Want to get rid of the same due to its poor performance). • 5 lacs ULIPS(ICICI) (Want to get rid of the same due to its poor performance). • 6 lacs EPFO (approx.). • Mutual Funds (10 lacs approx.). • CANARA ROBECOCONSERVATIVE HYBRID FUND-DIRECT GROWTH. (INVESTED 1 LAC IN 2020). • KOTAK DBT HYBRID FUND-DIRECT GROWTH (INVESTED 5 LACS IN 2024). • TATA ELSS TAX SAVER FUND-DIRECT GROWTH (CURRENT VALUE 3 LACS APPROX). • NIPPON INDIA DYNAMIC BOND FUND-DIRECT GROWTH (INVESTED 2 LACS IN 2020).
Ans: At 50 years old, with uncertain job stability, it’s wise to focus on securing your future. You have a substantial amount in fixed deposits (FDs) and investments, but it’s essential to optimize these to ensure financial security. Your current financial holdings include Rs 30 lakhs in FDs, Rs 25 lakhs in stocks, Rs 7.5 lakhs in PPF, and other investments in NPS, pension plans, ULIPs, and mutual funds.

Given your goals of beating inflation, securing future expenses, and wealth creation, let’s explore a strategy to align your investments with these objectives.

Emergency Fund and Job Stability
Your Rs 30 lakh FD acts as an emergency fund, covering over 10 years of expenses at Rs 25,000 per month. This is a robust safety net, especially given your job uncertainty.

Liquidity: Keep a portion of this FD liquid to ensure quick access in case of job loss or unexpected expenses.

Staggered FD Approach: Consider breaking your FD into multiple deposits with varying maturity dates. This will give you liquidity at regular intervals without sacrificing interest.

Medical Insurance
Your medical insurance coverage is substantial, with Rs 10 lakhs as the base amount and Rs 65 lakhs as a super top-up. This provides excellent coverage for potential medical expenses.

Regular Review: Ensure your medical insurance is reviewed annually. Medical inflation is high, and adequate coverage is vital as you age.
Optimizing Your Existing Investments
1. Fixed Deposits (Rs 40-50 lakhs)
You plan to deploy Rs 40-50 lakhs from FDs into mutual funds over the next 3-4 years. This is a wise move to combat inflation and seek higher returns.

Systematic Transfer Plan (STP): Consider using an STP to gradually move funds from FDs to equity mutual funds. This reduces the risk of entering the market at a high point and provides a steady investment approach.

Hybrid Funds: Since you’re transitioning from FDs, you may start with hybrid funds, which offer a mix of equity and debt. They provide growth potential with some stability.

2. Stocks (Rs 25 lakhs)
Your Rs 25 lakh investment in stocks needs careful management, especially with your retirement approaching.

Diversification: Ensure your stock portfolio is well-diversified across sectors. Avoid overexposure to any single industry.

Professional Management: Consider reallocating a portion of your stocks to professionally managed equity mutual funds. Fund managers can help optimize returns and reduce risk, which is crucial as you near retirement.

3. Public Provident Fund (PPF - Rs 7.5 lakhs)
PPF is a safe and tax-efficient investment, ideal for long-term goals.

Continue SIP: Keep your Rs 4,000 SIP in PPF. It offers assured returns and tax benefits under Section 80C, making it a valuable component of your portfolio.

Partial Withdrawals: Remember, you can make partial withdrawals after 15 years if needed, making it a flexible option for future needs.

4. National Pension System (NPS - Rs 6 lakhs)
You’ve mentioned dissatisfaction with NPS due to its performance. While it’s a long-term investment, the returns may not align with your expectations.

Exit Strategy: If you’re considering exiting NPS, be mindful of the exit rules and tax implications. You could use the proceeds to invest in more growth-oriented funds.

Alternative Investment: Consider shifting the funds to a balanced or equity-oriented mutual fund for potentially better returns.

5. Pension Plan (Rs 5.5 lakhs) and ULIPs (Rs 5 lakhs)
You want to exit your ICICI pension plan and ULIPs due to poor performance. These products often have high costs and lower returns compared to mutual funds.

Surrender Strategy: Evaluate the surrender charges and potential losses before exiting. It might be worth exiting if the charges are reasonable.

Reinvestment: Reinvest the surrendered amount in mutual funds, where you can potentially achieve better growth with lower costs.

6. Employees’ Provident Fund Organisation (EPFO - Rs 6 lakhs)
EPFO is a secure investment that provides decent returns along with tax benefits.

Continue Contributions: Keep contributing to EPFO if possible. It’s a safe investment with the added benefit of retirement savings.

Rebalancing: As you approach retirement, gradually shift from equity to debt to preserve your capital.

New Investment Strategy
1. Equity Mutual Funds
Equity mutual funds are essential for long-term growth. Given your 3-4 year investment horizon for Rs 40-50 lakhs, start with a mix of large-cap and multi-cap funds.

Large-Cap Funds: These funds invest in well-established companies, offering stability and moderate growth. They are less volatile and provide steady returns.

Multi-Cap Funds: These funds provide exposure to large, mid, and small-cap companies, offering a balanced approach to growth and risk.

2. Balanced Funds
Balanced funds can be an excellent choice for someone transitioning from fixed deposits. They offer a mix of equity and debt, providing both growth and stability.

Moderate Risk: Balanced funds are ideal if you seek growth but with controlled risk. They can provide better returns than FDs while managing volatility.
3. Dynamic Bond Funds
Your investment in the Nippon India Dynamic Bond Fund indicates an interest in debt mutual funds. Dynamic bond funds can adjust their portfolio based on interest rate movements, which makes them a good option for fixed-income investments.

Interest Rate Management: These funds are actively managed to take advantage of changing interest rates, potentially offering better returns than traditional debt funds.
Final Insights
Your financial plan should focus on securing your future while beating inflation. Transitioning Rs 40-50 lakhs from fixed deposits to mutual funds over 3-4 years is a wise move. Use an STP to manage risk, and consider equity and balanced funds for growth.

Your existing investments in PPF, EPFO, and stocks should be managed carefully, with a focus on diversification and risk management. Exit underperforming products like NPS, pension plans, and ULIPs if it makes financial sense. Reinvest those funds into better-performing mutual funds.

Regularly review and rebalance your portfolio to stay aligned with your goals. Given your age and financial situation, a mix of equity and debt will provide growth, security, and inflation protection.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Listen
Money
Hello Sir, this is Dhiraj DM, I am 48 year's old married with no kids, we have any flat worth 1. 5 cr given on rent around 50 lakhs of equity 20 lacs mutual funds we want to retire in next 3 years,please guide. We live in a metro no liability, we r into Gifting business now want to retire in next 3 years
Ans: Your retirement is just three years away. You have built a strong foundation with real estate, equity, and mutual funds. Now, the goal is to structure your investments for steady income, security, and long-term sustainability.

1. Assessing Your Current Financial Position
Flat Worth Rs. 1.5 Crore: This generates rental income, but liquidity is limited.
Equity Portfolio of Rs. 50 Lakh: Market-linked investments with potential for high returns but volatile.
Mutual Funds of Rs. 20 Lakh: Offers diversification and moderate risk exposure.
No Liabilities: This is a strong advantage for financial freedom.
Gifting Business: If planning to exit, ensure business-related finances are sorted before retirement.
2. Estimating Post-Retirement Income Needs
Calculate expected monthly expenses, including medical, travel, lifestyle, and emergency costs.
Factor in inflation, as expenses will rise over time.
Consider long-term costs such as medical care and home maintenance.
3. Structuring Retirement Income
Rental Income as a Fixed Source
Your flat generates rental income, which helps with stability.
Consider reinvesting this income for further growth.
Portfolio Rebalancing for Stability
Equity exposure is beneficial but risky close to retirement.
Shift some funds to low-risk instruments for safety.
Keep some allocation to equity to combat inflation.
Maintaining Liquidity for Emergencies
Create an emergency fund of at least 2 years' expenses in liquid assets.
Avoid relying solely on investments that require selling in volatile markets.
4. Health and Insurance Planning
Ensure comprehensive health insurance for both of you, at least Rs. 15-20 lakh coverage.
If you hold any old insurance policies with low returns, consider restructuring them.
Create a separate healthcare fund for long-term medical expenses.
5. Tax Efficiency in Retirement
Structure withdrawals smartly to reduce tax burden on capital gains.
Use tax-free instruments where applicable.
Rental income is taxable, so deduct maintenance expenses to lower tax outgo.
6. Planning Investments for Retirement Income
Avoid complete reliance on fixed-income instruments, as they may not beat inflation.
A mix of mutual funds, debt instruments, and systematic withdrawal plans (SWP) will ensure steady cash flow.
Keep some investments growth-oriented to sustain wealth over decades.
7. Estate and Legacy Planning
Prepare a clear will to ensure smooth asset transfer.
If you plan to donate or support causes, structure funds accordingly.
Finally
Ensure liquidity and stability in your investments.
Reduce risk in equity but keep exposure for growth.
Maintain a dedicated healthcare fund and strong insurance coverage.
Structure investments to minimise taxes and ensure steady income.
Plan legacy and succession to avoid future complications.
Would you like a detailed plan on how to allocate your investments for steady retirement income?

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

...Read more

Pushpa

Pushpa R  |49 Answers  |Ask -

Yoga, Mindfulness Expert - Answered on Feb 05, 2025

Asked by Anonymous - Feb 04, 2025Hindi
Listen
Health
My sister is recently diagnosed with second stage of breast cancer. She is always emotional and moody. Can I introduce her to yoga or meditation? Can yoga help her cope with the fear and uncertainty?
Ans: I'm very sorry to hear about your sister’s diagnosis. This is a challenging time, and emotional support is just as important as medical treatment. Yes, yoga and meditation can help her cope with fear, stress, and uncertainty by bringing mental peace, emotional strength, and relaxation.

How Yoga Can Help:
Reduces Anxiety & Fear: Gentle yoga and deep breathing activate the parasympathetic nervous system, which helps in relaxation and emotional balance.
Improves Sleep: Many cancer patients struggle with sleep. Yoga Nidra and slow breathing exercises can promote restful sleep.
Boosts Positivity: Meditation and mindfulness help shift focus from fear to inner peace.
Strengthens the Body: Light yoga can help reduce fatigue and improve overall well-being during treatment.
Recommended Practices for Your Sister:
Breathing (Pranayama): Anulom Vilom (Alternate Nostril Breathing) and Bhramari (Humming Bee Breath) calm the mind.
Gentle Yoga Poses: Child’s Pose, Butterfly Pose, and Legs-Up-The-Wall Pose promote relaxation.
Meditation & Yoga Nidra: Guided meditation can help ease emotional distress and bring hope.
Encourage her to consult a yoga coach for personalized support. With the right guidance, yoga can become a healing companion in her journey.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

...Read more

Pushpa

Pushpa R  |49 Answers  |Ask -

Yoga, Mindfulness Expert - Answered on Feb 05, 2025

Asked by Anonymous - Feb 04, 2025Hindi
Listen
Health
Mam, can yoga help prevent cancer in women? Please advice
Ans: Yoga cannot guarantee the prevention of cancer, but it can play a supportive role in maintaining overall health, reducing risk factors, and improving well-being. Many studies suggest that regular yoga practice helps reduce stress, improve immunity, balance hormones, and promote detoxification—all of which may lower the risk of cancer in women.

How Yoga Can Help:
Reduces Stress: Chronic stress weakens the immune system and increases inflammation, which can contribute to disease. Practicing meditation, breathing exercises, and relaxation techniques keeps the body in balance.
Boosts Immunity: Gentle yoga poses improve blood circulation and support the lymphatic system, which helps remove toxins from the body.
Balances Hormones: Hormonal imbalances may increase the risk of conditions like breast and ovarian cancer. Regular yoga helps maintain a healthy endocrine system.
Supports Detoxification: Twisting poses and deep breathing help the body eliminate waste and toxins.
Recommended Practices:
Pranayama (Breathwork): Anulom Vilom and Bhramari help calm the nervous system.
Yoga Poses: Cobra Pose, Twists, and Forward Bends improve digestion and circulation.
Meditation & Relaxation: Yoga Nidra and mindfulness reduce stress and promote healing.
For personalized guidance, consult a yoga coach who can create a practice suited to your health needs.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

...Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Listen
Money
Get me some clearity on HDFC BALANCED ADVANTAGE FUND as from last few days my portfolio is going in negative
Ans: Understanding Balanced Advantage Funds

Balanced Advantage Funds invest in both equity and debt. They adjust their investments based on market conditions. This flexibility helps manage risk and aim for steady returns.

Recent Performance Insights

It's natural to feel concerned when your portfolio shows negative returns. Remember, short-term declines are common in investments. Balanced Advantage Funds aim to reduce risk by adjusting their investments. This strategy helps manage market ups and downs.

Factors Influencing Performance

Several elements can affect your fund's performance:

Market Volatility: Changes in the market can impact returns.

Asset Allocation: The mix of equity and debt plays a role.

Interest Rate Changes: Fluctuations can influence debt investments.

Economic Indicators: Factors like inflation and GDP growth are important.

Evaluating Fund Performance

To assess your fund's performance:

Compare with Benchmarks: See how it measures up against standard indices.

Review Historical Returns: Look at past performance over different periods.

Consider Risk-Adjusted Returns: Evaluate returns in relation to the risk taken.

Staying the Course

It's commendable to stay focused on your long-term goals. Short-term market changes shouldn't deter your investment strategy. Maintaining discipline is key to achieving financial objectives.

Consulting a Certified Financial Planner

For personalized advice, consider consulting a Certified Financial Planner. They can provide guidance tailored to your financial situation.

Final Thoughts

Market fluctuations are a part of investing. Balanced Advantage Funds are designed to manage these ups and downs. Staying informed and patient can help you reach your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Listen
Money
Hello, my mother is 62 year old pensioner. She has invested funds in government securities and postal schemes. Despite submitting 15H form and filing ITR (as a senior citizen person), her tax is getting deducted. Can you kindly explain why this is happening?
Ans: There are a few possible reasons why TDS (Tax Deducted at Source) is being deducted from your mother's investments, despite submitting Form 15H and filing ITR.

1. Incorrect or Late Submission of Form 15H
Form 15H must be submitted at the start of the financial year to all institutions where she has investments.
If submitted after TDS is deducted, it won’t apply retrospectively to recover the deducted tax.
Ensure the form is submitted separately to each bank, post office, or financial institution.
2. Exceeding the Basic Exemption Limit
For senior citizens (60+ years), income up to Rs. 3 lakhs is tax-free.
If her total taxable income (pension + interest from investments) exceeds Rs. 3 lakhs, TDS will still apply.
Even if TDS is deducted, she can claim a refund while filing her ITR if her total tax liability is zero.
3. Form 15H Validity Rules
Form 15H is only valid if total taxable income is below the exemption limit.
If her total income is more than Rs. 3 lakhs, banks and post offices will ignore Form 15H and deduct TDS.
4. Different TDS Thresholds for Investments
Banks deduct TDS on FD interest if it exceeds Rs. 50,000 per year for senior citizens.
Post Office schemes (like SCSS) deduct TDS if interest crosses Rs. 50,000 per year.
Government securities may also have TDS rules based on the issuing authority.
5. PAN Not Updated with the Bank/Post Office
If PAN is not linked to the investment accounts, higher TDS at 20% is deducted.
Ensure all investments have PAN updated to avoid excess TDS.
6. Errors in Tax Deduction System
Sometimes, banks deduct TDS even if Form 15H is submitted correctly.
In such cases, she can file an ITR and claim a refund from the Income Tax Department.
What to Do Now?
Check total taxable income to confirm if she qualifies for Form 15H.
Verify all Form 15H submissions with banks and post offices.
Ensure PAN is updated in all financial institutions.
If TDS is wrongly deducted, file an ITR and claim a refund.
Would you like help with checking if she is eligible for a refund?

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7838 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

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

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

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

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

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

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x