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Ramalingam

Ramalingam Kalirajan  |7167 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 22, 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 - May 22, 2024Hindi
Money

I am getting 9 Lakhs in another sixonths.I am retired and I need steady Monthly Income. Where do I invest without any risk. Also can it be liquidated after a Period of Five Years. Can I have a Nominee for the Investment. Kindly Suggest. It should be absolutely risk free.

Ans: Congratulations on your retirement and the upcoming receipt of ?9 lakhs. Planning for a steady monthly income and ensuring that your investments are risk-free and liquidatable after five years is crucial. You also mentioned the importance of having a nominee for the investment. Let's explore various investment options that align with these goals.

Investment Goals
Key Objectives
Steady Monthly Income: Ensuring a reliable flow of income every month.
Risk-Free: Investments should be safe with minimal risk to the capital.
Liquidity after Five Years: Ability to liquidate the investment after five years without any penalty.
Nominee Facility: Ensure the investment can have a nominee for ease of transfer.
Safe Investment Options
Senior Citizens' Savings Scheme (SCSS)
Overview
The SCSS is a government-backed savings scheme designed specifically for senior citizens, providing regular income and high safety.

Features:

Interest Rate: Competitive interest rates that are higher than regular savings accounts.
Tenure: 5 years, which can be extended by another 3 years.
Liquidity: Can be liquidated after five years without penalties.
Nominee Facility: Allows the nomination of a beneficiary.
Advantages:

Government-Backed Security: Ensures safety and reliability.
Regular Payouts: Quarterly interest payments ensure a steady income.
Suitability
This scheme is ideal for risk-averse investors seeking a secure and regular income stream.

Post Office Monthly Income Scheme (POMIS)
Overview
POMIS is another government-backed scheme that provides a steady monthly income.

Features:

Interest Rate: Fixed interest rate determined by the government.
Tenure: 5 years.
Liquidity: Withdrawable after 5 years without penalties.
Nominee Facility: Allows the nomination of a beneficiary.
Advantages:

Safety: Government-backed ensures principal safety.
Monthly Income: Regular monthly interest payouts provide a steady income.
Suitability
POMIS is suitable for conservative investors looking for safe monthly income options.

Fixed Deposits (FDs) in Banks
Overview
Bank Fixed Deposits are a traditional and safe investment option offering fixed returns over a specified period.

Features:

Interest Rate: Varies by bank but generally offers higher rates for senior citizens.
Tenure: Flexible, but 5-year deposits match your requirement.
Liquidity: Breakable with penalties if withdrawn early, but can be aligned to mature after five years.
Nominee Facility: Nomination is available for ease of transfer.
Advantages:

Safety: Insured up to ?5 lakhs per bank under the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Predictable Returns: Fixed interest rates provide stable income.
Suitability
FDs are suitable for those seeking guaranteed returns and high safety.

Debt Mutual Funds
Overview
Debt Mutual Funds invest in fixed income securities like bonds, treasury bills, and other money market instruments.

Features:

Interest Rate: Market-linked but generally stable.
Tenure: Can be chosen based on the fund’s portfolio, with options aligning with a 5-year period.
Liquidity: Generally liquid, with some funds having a lock-in period.
Nominee Facility: Allows nomination.
Advantages:

Diversification: Spread across various debt instruments reducing risk.
Tax Efficiency: Better tax treatment for long-term capital gains.
Suitability
Suitable for conservative investors looking for moderate returns with low risk.

Public Provident Fund (PPF)
Overview
PPF is a long-term savings scheme with tax benefits, though it has a 15-year lock-in period, partial withdrawals are allowed after 5 years.

Features:

Interest Rate: Announced quarterly by the government, usually higher than regular savings.
Tenure: 15 years, but partial withdrawals allowed after 5 years.
Liquidity: Partial withdrawal available after 5 years.
Nominee Facility: Nomination is available.
Advantages:

Tax Benefits: Under Section 80C of the Income Tax Act.
Safety: Government-backed ensures principal safety.
Suitability
Ideal for long-term, low-risk investments with tax benefits.

Setting Up the Investments
Creating a Balanced Portfolio
Based on the need for safety, liquidity, and steady income, a mix of the following could be optimal:

Senior Citizens' Savings Scheme (SCSS)
Post Office Monthly Income Scheme (POMIS)
Bank Fixed Deposits (FDs)
Allocation Strategy
SCSS and POMIS
Invest a significant portion (e.g., ?4.5 lakhs in SCSS and ?4.5 lakhs in POMIS): These schemes provide regular payouts and are safe, meeting the criteria of steady income and security.
Fixed Deposits
Consider spreading the remaining amount (e.g., ?1 lakh) in bank FDs: Select banks offering the highest interest rates and senior citizen benefits. Ensure deposits mature in 5 years.
Monitoring and Managing Investments
Regular Reviews
Annual Reviews: Ensure that the investments are performing as expected and adjust as needed.
Nominee Registration
Ensure Nominee Registration: Verify and register nominees for each investment to facilitate easy transfer.
Conclusion
Investing in SCSS, POMIS, and bank FDs will provide you with a secure and steady monthly income. These options ensure your capital is safe, can be liquidated after five years, and allow for nominee registration. By carefully allocating your ?9 lakhs, you can enjoy a worry-free retirement with assured income and safety.

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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Need to invest about a crore in a scheme that is safe and secure where the capital is safe plus good quarterly returns. I m 62 retired
Ans: As a retired individual seeking a safe and secure investment with good quarterly returns for a significant sum of money, it's essential to prioritize capital preservation while aiming for reasonable returns. Here are some investment options to consider:

Fixed Deposits (FDs): Fixed deposits offered by banks provide a safe and predictable way to earn returns on your investment. While the interest rates may vary, you can opt for FDs with quarterly interest payouts to ensure a steady income stream. Ensure that you choose reputed banks with high credit ratings for added safety.
Senior Citizen Savings Scheme (SCSS): SCSS is a government-backed savings scheme designed specifically for senior citizens. It offers attractive interest rates and quarterly interest payouts, making it suitable for retirees looking for regular income. The scheme has a tenure of 5 years, which can be extended by an additional 3 years.
Post Office Monthly Income Scheme (POMIS): POMIS is a low-risk investment option offered by India Post that provides monthly interest payouts. While the returns may be slightly lower compared to other investment avenues, POMIS offers capital protection and regular income, making it suitable for retirees seeking stability.
Pradhan Mantri Vaya Vandana Yojana (PMVVY): PMVVY is a government-backed pension scheme exclusively for senior citizens. It provides guaranteed returns and offers the option of quarterly, half-yearly, or annual pension payouts. The scheme has a tenure of 10 years and can be an attractive option for retirees looking for a secure income source.
Debt Mutual Funds: Debt mutual funds invest in fixed-income securities such as government bonds, corporate bonds, and money market instruments. While they offer relatively higher returns compared to traditional fixed deposits, it's essential to choose funds with a conservative investment approach and a track record of consistent performance.
Before investing a significant sum of money, consider factors such as liquidity needs, tax implications, and your risk tolerance. It's advisable to diversify your investments across multiple avenues to mitigate risk and ensure a balanced portfolio. Additionally, consult with a Certified Financial Planner (CFP) or financial advisor to tailor an investment strategy that aligns with your financial goals and retirement needs.

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Asked by Anonymous - Apr 29, 2024Hindi
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I am 31 Years Old...I wanted to invest a lumpsum of 30 Crore rupees saved from my business in past 10 years....I don't want to get into traditional mutual fund,stock options and gold,fd etc...could you please guide me where can I take maximum risk but assured paperwork
Ans: At 31, your ambition to invest a substantial lump sum of ?30 crores reflects your entrepreneurial success and strategic financial planning. While seeking maximum risk exposure with assured paperwork, it's essential to evaluate alternative investment avenues and compare them with traditional options like Mutual Funds (MFs).

Mutual Funds: A Trusted Investment Vehicle
Mutual Funds offer a diverse range of investment options, including equity, debt, and hybrid funds, managed by professional fund managers. Here's why they stand out compared to other alternative investments:

Regulatory Oversight: Mutual Funds are regulated by market regulators such as SEBI, ensuring transparency, investor protection, and adherence to compliance standards. This regulatory framework provides a layer of assurance regarding investment operations and paperwork.

Professional Management: MFs are managed by experienced fund managers who conduct in-depth research and analysis to optimize portfolio performance. Their expertise and active management strategies aim to generate consistent returns and mitigate risks, offering investors peace of mind.

Liquidity and Flexibility: Mutual Funds provide liquidity and flexibility, allowing investors to buy and sell units at Net Asset Value (NAV) on any business day. This feature ensures easy access to funds and facilitates portfolio rebalancing or asset reallocation as per changing investment objectives.

Diversification Benefits: MFs enable investors to diversify their portfolios across various asset classes, sectors, and geographies, reducing concentration risk and enhancing risk-adjusted returns. This diversification potential is particularly valuable for mitigating volatility and maximizing long-term growth potential.

Contrasting Alternative Investment Avenues
While Mutual Funds offer several advantages, alternative investment avenues such as Venture Capital, Private Equity, Real Estate Syndication, and Cryptocurrency exhibit distinct characteristics and considerations:

Risk Profile: Alternative investments often entail higher risk due to their illiquid nature, lack of regulatory oversight, and susceptibility to market volatility and business uncertainties. While they offer potential for high returns, investors must assess their risk appetite and tolerance before venturing into these asset classes.

Documentation and Transparency: Unlike Mutual Funds, alternative investments may lack standardized documentation and regulatory scrutiny, leading to potential ambiguity and legal complexities. Investors must conduct thorough due diligence and seek legal advice to ensure clarity and transparency in paperwork and contractual agreements.

Liquidity Constraints: Alternative investments, such as Real Estate Syndication and Private Equity, typically have longer investment horizons and limited liquidity compared to Mutual Funds. Investors may face challenges in exiting investments prematurely or accessing funds during urgent financial needs.

Conclusion: Optimal Balance of Risk and Assurance
While alternative investments offer opportunities for high-risk, high-reward returns, Mutual Funds stand out as a preferred choice for investors seeking a balance of risk mitigation and paperwork assurance. With their regulatory oversight, professional management, liquidity, and diversification benefits, Mutual Funds provide a reliable and transparent investment avenue for achieving long-term financial goals.

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I am a retired this year without pension provision. I can invest 5 to 10 lakhs for a period of three years. Kindly suggest how to invest.
Ans: Your Situation

You've recently retired without a pension.
You have Rs. 5-10 lakhs to invest.
Your investment horizon is three years.

Investment Goals

As a retiree, your main goals are likely:
Regular income for daily expenses.
Capital protection to maintain your savings.
Some growth to beat inflation.

Low-Risk Options

For capital protection, consider these options:
Fixed Deposits in banks.
Post Office Time Deposits.
Government savings schemes like Senior Citizens Savings Scheme.

Debt Mutual Funds

These can give slightly better returns than FDs.
Consider short-term debt funds or banking & PSU funds.
They have low risk but aren't completely risk-free.

Balanced Mutual Funds

These invest in both stocks and bonds.
They can give better returns than pure debt options.
But they also carry more risk.

Liquid Funds

Good for parking some money for emergencies.
They give slightly better returns than savings accounts.
You can withdraw money quickly when needed.

Senior Citizens Savings Scheme

This government scheme offers good interest rates for seniors.
It provides regular income through quarterly interest payments.
The current interest rate is attractive for retirees.

Pradhan Mantri Vaya Vandana Yojana

Another government scheme for senior citizens.
It provides regular pension for 10 years.
Good option if you want assured regular income.

Tax Considerations

Consider tax-saving options if you still have tax liability.
Tax-saver FDs or ELSS mutual funds can help.
But remember, ELSS funds have a lock-in period.

Diversification

Don't put all your money in one place.
Spread it across 2-3 different investment options.
This helps manage risk better.

Regular Income Plan

If you need regular income, set up a monthly income plan.
You can use Systematic Withdrawal Plan (SWP) in mutual funds.
Or choose investments that pay regular interest.

Finally

Your focus should be on safety and regular income.
Don't take too much risk with your retirement savings.
Consider talking to a Certified Financial Planner for personalized advice.

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Asked by Anonymous - Oct 26, 2024Hindi
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Hi Madam, I have a 17 years old daughter and have been struggling with an issue for some time now. She takes very long time in bathroom for getting ready. She takes minimum 1.5 hrs daily for getting ready. This includes time spent in teeth brushing,bathing and defecation. When I asked her then she told me she feels like cleaning multiple times and thus it takes time. I have tried multiple ways to ge her to resolve this but none has worked. She is a very sincere, gentle kid and She becomes very aggressive when I try to persist her to solve this. she takes a lot of time in washing, bathing and ends up consuming very high amount of soap. This has had effect on other hygiene related aspects like She developed extreme dryness in skin for which we had to take very long treatment from dermatalogist. The dermatalogist also counselled her many times to use limited amount of soap and fix time for every activity in bathroom. I think it is some form of OCD. It has had effect on other things like studies as she is not able to get ready on time and thus ends up compromising on other activities like eating time, studies time. I have tried to counsel her many times but it has not worked. I told her the problems which start due to this which impact her. I suggested that we meet some professional(like psychologist/psychiatrist/counsellers) but she doesn't agree to it. whenever i say to consult somebody then she says that she will fix it and for 1-2 days it gets a little better but then she goes to her old routine. I don't want to forcibly take her to any professionals as she might develop a complex that she is inferior. 1.How do i handle this issue 2.How do I convince her to meet some professional 3.Which professional should we meet. psychologist or psychiatrist or any other Please suggest what I should do as it is now becoming big problems
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Hello sir, we have completed 8 months of marriage and still my husband has trust issues about me, like I would have relation or contact with other person but I'm not having any relationship with anyone after marriage and even not connecting to anyone nor any ex person called or contact me from any media or app, . Since then I'm trying to clear my husbands doubt every time he asks me about it ...plzz tell me how do I make him to trust me .
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One of the challenges you face is the need for patience—both with him and with yourself. Reassuring your husband is important, but it’s equally important to create a space for deeper conversations about the root of his insecurities. Have you been able to sit down with him and gently ask what specifically triggers his doubts? You may want to approach this from a place of curiosity and care, without getting defensive. Understanding the underlying causes of his fears can give you both a clearer sense of how to work together to address them.

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In cases where trust issues persist despite your best efforts, it can sometimes be helpful to involve a third party, like a therapist or counselor. It may feel intimidating or unnecessary at first, but professional help can provide a neutral space for both of you to explore deeper issues—whether they are related to past experiences, emotional insecurities, or patterns of behavior. A counselor can also guide you in having more productive conversations and finding healthier ways to cope with these challenges as a couple.

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Hi Kanchan, I am reaching out because I am deeply troubled and need some advice. I was involved in a relationship with a much younger woman (14 years younger) who I developed strong feelings for. We met in 2017 and our relationship deepened in June 2022, involving both emotional and physical intimacy. Unfortunately, the relationship took a negative turn. She began making financial demands and became increasingly manipulative. Over the past two years, I've given her nearly 3 lakhs [for Rent, electricity bill, Food expenses + Other expenses]. After realizing her true intentions, I stopped providing financial support. She recently informed me about a breakup with a previous long-term partner. Shockingly, she got married in February 2024 [ 14th Feb] and is now residing in Ahmedabad, Gujrat. She ran away from Kolkata after extorting money. When I confronted her about the money I had given her, she completely denied any knowledge of it and has blocked me on all social media platforms. She even threatened to share our conversations with my daughter/ relatives if I continued to contact her. I am devastated by this betrayal and the emotional turmoil it has caused. I have saved our chats and her father's address. I am considering sharing her true nature with her friends and family. Is this a wise course of action? Or are there other steps I should take? I know it is easier said than done, but I am struggling to move on from this painful experience. Please offer any guidance you can. Thank you, AS,Kolkata
Ans: it's important to recognize that your emotional pain is valid. The feelings of being manipulated, exploited, and lied to are all real, and it’s okay to mourn the loss of a relationship that you thought had value. However, as tempting as it might be to seek some form of revenge or public exposure of her actions, it’s crucial to ask yourself: what do you really hope to achieve? It’s natural to want justice or closure, but sometimes, seeking to get even only prolongs your suffering. Taking the high road may not feel satisfying in the moment, but it will allow you to reclaim control over your own emotional state and move forward in a healthier way.

Rather than focusing on exposing her, I encourage you to turn your attention inward and prioritize your healing. Healing is not about ignoring the wrongs that have been done, but about freeing yourself from the emotional hold that this situation has on you. This could mean allowing yourself to grieve the loss of not only the relationship but also the trust you gave to someone who ultimately betrayed it. It’s important to recognize that closure doesn't always come from confronting the other person or airing grievances—it can come from within, through self-reflection, and setting the intention to heal and move forward.

I also understand that it’s hard to let go of the desire for accountability, especially when it feels like she’s getting away with something. But the truth is, confronting her may not bring the peace you hope for. It could lead to further conflict, strain your relationships with others, and keep you emotionally entangled with someone who no longer deserves a place in your life. Instead of focusing on her actions, I encourage you to take steps that help you regain your sense of self-worth and emotional security. Reflect on what you've learned from this experience—what boundaries you might want to set in future relationships, and how you can protect your emotional and financial wellbeing moving forward.

Consider seeking support from a counselor or therapist, someone who can provide a safe space for you to process your feelings and help you navigate your next steps. Talking through your emotions with a neutral third party can give you the clarity and emotional tools you need to make decisions that align with your highest good.

Finally, remember that you are not defined by this situation. It’s easy to fall into the trap of self-blame, but you are not responsible for her actions. What matters now is how you move forward, rebuild your sense of trust in yourself, and ensure that you are emotionally supported in the process. This painful chapter doesn’t have to define your future, but how you choose to heal from it can shape the life you want to create moving forward.

Take your time to process this at your own pace, but don’t let the actions of someone else keep you tethered to a painful past. You deserve peace, healing, and a future where you feel empowered and free from this betrayal.

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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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