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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 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 - Apr 29, 2024Hindi
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Hi sir, I have a fixed deposit of 70 lakhs and monthly income of 5.5 to 6 lakhs a month, and have no emi going on, let me know how to get financial freedom asap.

Ans: Congratulations on your prudent financial habits! With your substantial fixed deposit and healthy monthly income, achieving financial freedom is indeed within reach.

Understanding Your Goals and Risk Appetite

Assessing your financial situation and goals is the first step towards achieving financial freedom. Let's delve into your aspirations and risk tolerance to tailor a strategy that aligns with your unique circumstances.

Mapping Out a Diversified Investment Strategy

Diversification is key to mitigating risk and maximizing returns. By spreading your investments across various asset classes, you can safeguard your wealth against market fluctuations while optimizing growth potential.

Tailored Investment Approach
Your substantial fixed deposit serves as a stable foundation for your portfolio. However, solely relying on fixed deposits may limit your wealth accumulation potential due to inflation erosion.

Equity Investments: Maximizing Growth Potential
Equity investments, through a well-managed portfolio of carefully selected stocks, mutual funds, or actively managed funds, offer the potential for substantial long-term growth. While they entail higher risk, they historically outperform other asset classes over the long run.

Expert Guidance and Portfolio Management
As a Certified Financial Planner, I emphasize the value of professional guidance in navigating the complexities of the financial markets. Partnering with a competent Mutual Fund Distributor (MFD) who holds a CFP credential can provide you with personalized advice and comprehensive portfolio management services.

Mitigating Risks and Embracing Opportunities
While your current financial position is robust, it's essential to remain vigilant against potential risks and seize opportunities for wealth enhancement. Regular portfolio reviews and adjustments ensure that your investments stay aligned with your evolving goals and market dynamics.

Cultivating Financial Discipline and Patience
Financial freedom is not an overnight achievement but a journey that requires discipline and patience. By adhering to a systematic investment approach and avoiding impulsive decisions, you can steadily progress towards your goal of financial independence.

Conclusion
With your substantial assets and prudent financial management, achieving financial freedom is not a distant dream but a tangible goal within your grasp. By adopting a diversified investment strategy, seeking expert guidance, and staying committed to your long-term objectives, you can embark on a path towards lasting financial security and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

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Hello Sir! Myself Madeswaran and I am 33 yrs old. I have worked for 10 years and I have no savings and saved nothing. I had 6 Lakhs in my savings 4 years back. Purchased gold for 1 lakh. Purchased car in 2 nd had for 3.5 Lakhs and Lost 3 Lakhs in forex an year back.I am having debt of 1 Lakh now and cleared Rs.50,000. Now my monthly income is only Rs.45,000. I have house expenses of Rs. Rs.30,000 and Loan emi of Rs. 5,000. I give. I am not able to find how the rest of Rs.10,000 money gets drained away. Now I want my financial freedom at the age of 50. What shall I do amd how shall I start. I am also looking for secondary income to get some financial buffer.
Ans: Hello Madeswaran! It's commendable that you're seeking to take control of your finances and work towards financial freedom. Let's assess your current situation and explore steps to get you back on track.

At 33, with a monthly income of Rs. 45,000 and monthly expenses of Rs. 35,000, it's essential to understand where the remaining Rs. 10,000 is being spent. Tracking your expenses diligently can help identify areas where you can cut back and redirect funds towards savings and debt repayment.

Given your previous financial setbacks, it's crucial to prioritize building an emergency fund to cover unexpected expenses and avoid going into further debt. Aim to set aside at least 3 to 6 months' worth of living expenses in a separate savings account as a safety net.

Addressing your existing debt of Rs. 1 lakh should be a priority. Focus on clearing this debt as soon as possible by allocating a portion of your monthly income towards repayment. Cutting back on non-essential expenses can free up additional funds for debt reduction.

Considering your goal of achieving financial freedom by the age of 50, it's important to establish a long-term financial plan. Start by setting specific, achievable goals and creating a budget to track your income and expenses.

Explore opportunities to increase your income through additional sources such as freelance work, part-time jobs, or starting a side business. Generating a secondary income can provide a financial buffer and accelerate your journey towards financial freedom.

Investing in yourself through education, acquiring new skills, or pursuing career advancement opportunities can also enhance your earning potential over the long term.

Finally, seek guidance from a Certified Financial Planner who can provide personalized advice tailored to your financial situation and goals. They can help you create a roadmap for achieving financial freedom and offer support and guidance along the way.

Remember, financial freedom is achievable with determination, discipline, and strategic planning. By taking proactive steps now, you can pave the way for a brighter financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

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

Asked by Anonymous - Jul 20, 2024Hindi
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I am 36 yr old working in an Engine Manufacturing company and I earn 1L per month. I have a loan of 25L, MF portfolio of 6L, EPF 2L, shares 50k, plot land of about 15L. I live on a rented apartment (30k). My monthly expenses is 50k. I want to get rid of loan and be financially free as soon as possible. Kindly advise.
Ans: Your Financial Snapshot

Age: 36 years
Monthly income: Rs. 1 lakh
Loan: Rs. 25 lakhs
Investments: Rs. 8.5 lakhs (MF, EPF, shares)
Land value: Rs. 15 lakhs
Monthly rent: Rs. 30,000
Monthly expenses: Rs. 50,000

Appreciating Your Efforts

You've built a good investment portfolio despite having a loan.
Your desire to be debt-free shows financial responsibility.
Having diverse investments is a smart move.

Debt Repayment Strategy

Focus on paying off your loan faster.
Consider using some of your investments to reduce the loan.
This can save you interest in the long run.

Budgeting for Financial Freedom

Try to cut down on your Rs. 50,000 monthly expenses.
Every small saving can go towards loan repayment.
Look for areas where you can reduce spending.

Maximizing Your Investments

Keep your EPF as it offers good returns.
Review your mutual fund portfolio regularly.
Consider selling shares to pay off some loan amount.

Actively Managed Funds Advantage

These funds are managed by expert fund managers.
They can adjust to market changes quickly.
This can potentially lead to better returns than index funds.

Rethinking Your Living Situation

Rs. 30,000 rent seems high compared to your income.
Look for cheaper rental options if possible.
Use the saved money to pay off your loan faster.

Income Enhancement

Look for ways to increase your Rs. 1 lakh monthly income.
Consider part-time work or freelancing opportunities.
Use any extra income to accelerate loan repayment.

Insurance Check

Ensure you have adequate life and health insurance.
This protects your finances from unexpected events.
Don't mix insurance with investments for better returns.

Regular Financial Review

Check your progress towards debt freedom every 3 months.
Adjust your strategy if needed.
Stay motivated by tracking how much loan you've paid off.

Finally
Focus on loan repayment for financial freedom. Balance this with maintaining some investments. Regular review and adjustments will help you reach your goal faster.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

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

Asked by Anonymous - Nov 09, 2024Hindi
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My age is 30 and I'm a government official earning around 65k in hand salary. I want financial freedom in coming 3 years. I have a few investments in secure bonds around 10lac and a few equity hondings around only 2.5 lacs because started late investment. My yearly expenses are around 2 lacs. Having no loan or outstanding. No insurance policy i do have except government employees insurance policy. What should i do to achieve financial freedom. Would it be possible to get financial freedom in 3 - 5 years?
Ans: Your financial discipline is impressive.

You have no outstanding loans. This is a big advantage.

Savings in secure bonds worth Rs 10 lakhs is noteworthy.

Equity investments worth Rs 2.5 lakhs show a good start, despite being late.

Annual expenses of Rs 2 lakhs mean your savings potential is excellent.

A government salary of Rs 65,000 in hand ensures stable cash flow.

However, you lack adequate insurance, which needs addressing. Let’s create a clear plan for financial freedom within 3–5 years.

Define Financial Freedom
Financial freedom doesn’t always mean quitting work.

It means covering your expenses with passive income.

You need Rs 2 lakhs annually, adjusted for inflation.

Assuming 6% inflation, this may rise to Rs 2.4–2.6 lakhs in three years.

You’ll need investments generating Rs 25,000 monthly.

Step-by-Step Financial Freedom Plan
1. Enhance Insurance Coverage
Government employee insurance covers basic needs. However, it’s not sufficient.

Get a term insurance plan for Rs 1 crore to secure your family.

Invest in a health insurance plan for Rs 10–15 lakhs.

This ensures protection against medical or financial emergencies.

2. Build a Robust Emergency Fund
Keep six months’ expenses in a high-liquidity investment.

Rs 1–1.5 lakhs in a savings account or liquid fund is ideal.

This will safeguard you against unexpected expenses.

3. Reassess Secure Bonds
Secure bonds are safe but may deliver lower returns.

Consider moving Rs 4–5 lakhs to a balanced portfolio of equity and debt funds.

Equity exposure will help combat inflation and grow wealth faster.

Retain Rs 5–6 lakhs in bonds for stability.

4. Expand Equity Investments
Your current equity allocation is low at Rs 2.5 lakhs.

Increase monthly investments in actively managed mutual funds.

Invest Rs 25,000–30,000 per month in funds with a good track record.

Diversify across large-cap, mid-cap, and small-cap categories.

Actively managed funds outperform index funds in volatile markets.

A mutual fund distributor with a CFP credential can help optimise investments.

5. Focus on Asset Allocation
Allocate 60% to equity, 30% to debt, and 10% to gold.

Equity builds wealth, debt ensures safety, and gold hedges against inflation.

Review this allocation annually and rebalance as needed.

6. Generate Passive Income
Invest in dividend-paying mutual funds for passive income.

Use systematic withdrawal plans (SWPs) after three years to generate cash flow.

Ensure withdrawals don’t erode your principal investment.

Over time, increase equity investments to grow this passive income.

7. Leverage Tax Efficiency
Use tax-saving investment options under Section 80C like ELSS mutual funds.

Opt for tax-efficient funds to minimise capital gains taxes.

Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.

For short-term gains, the rate is 20%. Keep these rules in mind.

8. Avoid Insurance-cum-Investment Policies
These plans offer lower returns and high lock-in periods.

Pure term insurance with mutual funds is more efficient.

9. Automate and Increase Savings
Automate your investments through SIPs for discipline.

Increase SIP amounts every year as your income grows.

10. Regular Financial Reviews
Review your financial plan every six months.

Adjust investments based on performance and market conditions.

Insights on Time Horizon and Feasibility
Achieving financial freedom in 3 years requires aggressive savings and investments.

A 5-year horizon is more realistic and achievable.

Starting late doesn’t mean financial freedom is impossible.

Key Benefits of This Plan
Protection against financial risks through insurance and emergency funds.

Faster wealth growth through equity investments.

Steady passive income to cover expenses.

Avoidable Mistakes
Avoid direct mutual funds; they lack professional advice.

Index funds may not suit your aggressive growth needs.

Don't delay insurance purchase; it’s crucial for risk management.

Finally
Financial freedom is achievable with a clear and disciplined approach.

Focus on increasing investments, ensuring protection, and generating passive income.

Keep reviewing your progress regularly.

Wishing you success in achieving your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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Pradeep Pramanik  |186 Answers  |Ask -

Career And Placement Consultant - Answered on Nov 21, 2024

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I am looking for a job, I had uploaded my resume in job site. A consultant called me & introduced himself telling he know some of the openings. He had a detailed discussion about my job & my skills. He told need to register to his consultancy for scheduling interview. I registered with him & he got me a interview. Interview was done by the company through skype. I could not see the company persons. They told only they can see me. Interview went on well & regarding salary I told my expectation but they told it is not possible & they told their proposal. Finally I agreed to them. They gave me code & told to visit the company for next round. Consultant called me after first round & told recruiter is very happy with the interview. Regarding salary he told why I agreed for the proposal,he will discuss again & asked to pay charges for some of his services which he will refund the day I visit to the company & take the orders. I paid him. He told there is a increase in salary he has discussed with recruiter & again asked for the money I did only partial payment & further will not pay anything. Second round also happened through skype instead of in person. Interview went on well & salary offered was good comparing to before & there was a big jump. Recruiter told they have planned to give additional responsibilities so they have increased. Finally they gave me a date to visit company. I asked when will I get the order, he replied he will send to consultant as I was taken by them. Till now i did not get the orders, consultant is keep on postponing. Now he told visit to company date is also postponed, he will update in next week & not to worry as job is confirmed. Now not understanding what to do, am I been cheated or wait.
Ans: Dear Mr. Keshava ,

There are many unscruplous job agents who are fake and claim themselves to be a Placement consultant. In short You have been cheated . Before paying any fee for registration , you must ensure that the agency is genuine . If not don't even upload your resume . You may write to company , lodge a complaint against the agency. If the amount is very high , pl. take the help of police . .

...Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

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

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I hv started sip in 2008 and still continued , now the monthly sip is 55k and total value is 1.85cr. Need to accumulate 7cr with in next 4 yrs pls guide how can i achieve. - Deepak J. Hajari
Ans: Deepak, your long-term SIP discipline is impressive. Accumulating Rs. 7 crore in 4 years is ambitious. Achieving this goal requires a strategic approach, as time is limited. Let's create an actionable plan for your success.

Current Financial Snapshot
Ongoing SIPs: Rs. 55,000 monthly.
Current Portfolio Value: Rs. 1.85 crore.
Target Corpus: Rs. 7 crore within 4 years.
Your consistent investing habits have built a solid foundation. However, to achieve your target, adjustments are needed.

Key Challenges
Short Time Frame: Four years is a limited period for aggressive wealth accumulation.
Significant Gap: A gap of Rs. 5.15 crore remains to meet the Rs. 7 crore goal.
Market Volatility: Equity investments might face short-term volatility.
Recommendations to Bridge the Gap
1. Increase Your SIP Contributions
Raise your SIP amount to Rs. 1.25 lakh per month.
This increase ensures faster wealth creation through compounding.
Prioritise high-growth funds in equity-oriented categories.
2. Invest Lump Sum Amounts
Consider deploying a lump sum if you have idle savings or low-yield investments.
Invest in aggressive equity mutual funds for higher potential returns.
Break down the lump sum into tranches for better market timing.
3. Diversify into High-Growth Mutual Funds
Focus on small-cap and mid-cap mutual funds for higher growth potential.
Maintain a balance with some large-cap exposure for stability.
Ensure the portfolio aligns with your high-return requirements.
4. Avoid Overexposure to Debt or Low-Yield Instruments
Limit debt investments during this aggressive growth phase.
Avoid instruments like FDs or debt mutual funds with lower returns.
Rely on equity for the next four years to maximise growth.
5. Rebalance Your Portfolio Regularly
Conduct a portfolio review every 6 months.
Reallocate funds based on underperforming or outperforming sectors.
Keep your portfolio aligned with market trends and your goals.
6. Capitalize on Bonus or Windfall Gains
Direct any bonuses, salary hikes, or windfall gains towards your target.
Avoid unnecessary expenses during this focused phase.
Tax Efficiency Matters
Equity Mutual Funds Taxation: Gains above Rs. 1.25 lakh are taxed at 12.5%.
Debt Mutual Funds Taxation: Taxed as per your income slab.
Plan redemptions strategically to minimise tax liabilities.
Leverage Market Opportunities
Benefit from Market Corrections: Use corrections as opportunities to invest lump sums.
Stay Invested for Compounding: Avoid early redemptions to let compounding work fully.
Role of Regular Monitoring
Track Performance: Ensure funds are performing as per expectations.
Switch Funds if Needed: Shift from underperforming funds to high-growth options.
Final Insights
Deepak, achieving Rs. 7 crore in 4 years requires aggressive yet calculated strategies. Increase your SIPs, deploy lump sums, and focus on high-growth funds. Regular monitoring and disciplined investing are key to your success. Stay patient and consistent.

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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