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Retiring Soon? I Have Rs 20 Lakhs in PF. How Can I Get a Good Monthly Pension?

T S Khurana

T S Khurana   |500 Answers  |Ask -

Tax Expert - Answered on Apr 04, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Seshu Question by Seshu on Mar 28, 2025Hindi
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Money

Hi Gurus, I am going to retired in this year. As I am working in Private Oraganisation, my retirment benifits will be minimal.But I have saved aroung Rs 20 Lakhs in PF Account. My plant to invest my PF amount and to get resanable monthly pension amount. My question is which is better and reliable fund, I can invest and how much I will get Monthly pension. Require your expertise advise. Thanks in Advance.

Ans: It may be suitable to invest this small amount (Rs.20.00 (L) either in Mutual Funds or in Post Office Monthly Income Scheme (Nil Risk investment). MFs may offer you better Returns, but it will involve some risk also. LIC also offers some investment opportunities for senior citizens, which you may consider.
Most welcome for any further clarifications. Thanks.
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Ramalingam

Ramalingam Kalirajan  |9848 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Asked by Anonymous - Nov 04, 2024Hindi
Money
I am 44 years old and will retire at age of 58 yrs. Have 2 children of 14 and 7 yrs.Pllaning to get around 50 lakhs fund for their higher education and would require 5 Cr corpus by my retirement.inesting in PPF yrly 150,000. Current balance is 20lakhs. Own house no loan. currently I have monthly SIPs of 30K with current valuation 20lakhs. SBI Magnum gilt fund direct growth (5000),SBI equity hybrid fund regular growth (10000),SBI blue chip fund (2500),SBI Nifty index fund regular plan(5000),ICICI PRUDENTIAL focussed equity fund direct plan growth (5000), ICICI PRUDENTIAL BALANCED adv fund direct plan growth (5000).Kindly let me know if these funds are good and it these help in gaining my goals.plz suggest in case of any changes required
Ans: Let's dive into your investment strategy for building the targeted Rs. 5 crore retirement corpus and Rs. 50 lakh education fund. You are already taking commendable steps, such as investing consistently in mutual funds and PPF, holding an equity-heavy portfolio, and managing with zero debt. Let's assess and optimize your current plan for maximum impact.

 

Current Investment Review
Your SIP portfolio is well-diversified with a mix of equity, hybrid, and debt-oriented funds. Here’s a quick assessment of the types of funds you hold and some pointers to optimize them further:

Equity and Focused Funds
These funds offer growth potential, which aligns well with your long-term goals. Equity funds generally have higher returns over time, making them essential for building wealth. However, focusing more on actively managed funds could bring in a higher return than index funds over the long term. This would support your goals more robustly than passive funds like index funds.

Hybrid Funds
Hybrid funds provide a balance between growth and stability, which helps reduce volatility. Including them in your portfolio is beneficial as it helps diversify across asset classes. However, actively managed equity or hybrid funds could be more advantageous over passively managed options.

Debt and Gilt Funds
While gilt funds can provide stability, they’re not always optimal for long-term goals due to their lower returns compared to equity. If your risk tolerance allows, consider re-allocating part of this investment to high-growth funds to support your corpus goals.

 

Suggested Adjustments to Your Portfolio
To maximize your chances of reaching your goals, a few changes are recommended:

Shift to More Active Funds
Actively managed funds are designed to outperform their benchmarks, unlike index funds. By investing through a Certified Financial Planner, you can benefit from personalized fund management, allowing for better potential growth aligned with market conditions.

Reallocate from Gilt to Equity-Based Funds
Since your retirement horizon is 14 years, a higher equity allocation may suit your portfolio better. Consider moving a portion from gilt to diversified equity funds for greater growth.

Increase Monthly SIPs Gradually
To build the Rs. 5 crore corpus and fund your children’s education, increasing your monthly SIP contributions with an annual increment (say 5-10%) will boost your corpus significantly.

 

Education Fund Planning
Your goal of Rs. 50 lakh for children’s education in 4-8 years is achievable by focusing on medium-term investments. Here’s a suggested approach:

Equity Funds with a Defensive Mix
A combination of large-cap and balanced funds would suit this goal, providing both growth and some stability. These funds are resilient during market downturns and typically perform well in medium to long term, helping achieve your educational goal.

Hybrid or Dynamic Asset Allocation Funds
Hybrid funds can automatically adjust equity-debt allocation based on market conditions, offering a balance between risk and return. This strategy aligns well with your shorter horizon for education funding needs.

Consider Lump Sum Investments
If you have any spare cash flow or bonuses, consider making lump-sum contributions into education-specific funds. This can give a boost to your target corpus for educational needs.

 

Long-Term Retirement Planning for Rs. 5 Crore
Building Rs. 5 crore in 14 years requires consistent investments and an increased focus on equity. Here’s how to further align your portfolio:

Increase Equity Exposure Gradually
To achieve high growth, increasing your equity allocation is essential. Equity-oriented funds have historically shown robust performance over 10-15 years, aligning well with your retirement timeline. These funds offer a balanced risk-reward approach and should be prioritized in your SIP contributions.

Systematic Transfer Plan (STP)
In the final 3-4 years before retirement, consider moving investments systematically from equity to safer debt funds. This STP will help safeguard your accumulated corpus against market volatility.

Avoid Over-Reliance on PPF
While your PPF contributions add safety, their returns may be limited compared to equity funds. A balanced approach with equity SIPs as a major component can yield better results.

 

Understanding the Impact of Direct vs. Regular Funds
Although direct funds have lower expense ratios, working through a Certified Financial Planner (CFP) using regular plans can add significant value to your portfolio. Here’s why:

Customized Strategy and Guidance
A CFP provides tailored advice on fund selection, asset allocation, and market timing. Regular plans enable access to this professional support, often translating to better overall performance.

Ease of Management and Rebalancing
With regular plans, your CFP can help rebalance your portfolio based on market conditions, aligning it with your goals without additional effort on your part.

 

Addressing Index Funds in Your Portfolio
Index funds may be low-cost, but they are also passively managed, limiting their ability to respond to changing market trends. For long-term goals like retirement, actively managed funds could be more effective due to their potential to generate alpha.

Growth Potential of Actively Managed Funds
Actively managed funds can yield higher returns as fund managers actively select high-potential stocks. This is especially beneficial for aggressive goals like building a Rs. 5 crore retirement corpus.
 

Tax Implications of Mutual Fund Investments
It’s important to understand the taxation on mutual fund gains to make informed decisions.

Equity Mutual Funds
Long-term capital gains (LTCG) over Rs. 1.25 lakh are taxed at 12.5%. Short-term gains (within 1 year) are taxed at 20%. For your long-term goals, LTCG taxation may be more favorable as your SIPs will benefit from long-term growth.

Debt Mutual Funds
Both LTCG and STCG on debt funds are taxed based on your tax slab. For high-income individuals, debt funds might incur a higher tax, so equity-heavy SIPs are generally more tax-efficient over time.

 

Emergency Fund and Risk Management
Your existing investments are growth-oriented, but maintaining liquidity for emergencies is crucial.

Emergency Fund
Ensure you have at least 6-12 months of expenses in a high-liquidity instrument like a savings account or liquid fund. This way, you’re covered for unexpected needs without disrupting your long-term plans.

Insurance Cover
Ensure adequate health and life insurance coverage to protect your family’s future. This acts as a safety net, ensuring your retirement and education funds remain untouched even in emergencies.

 

Final Insights
Your investment portfolio and approach are well-aligned with your goals. By making minor tweaks, such as increasing equity exposure, transitioning to actively managed funds, and incrementing SIP contributions annually, you can achieve both the Rs. 50 lakh education fund and the Rs. 5 crore retirement corpus comfortably.

These adjustments, along with strategic planning for taxation and risk, can bring you closer to your financial goals. Continue investing consistently, stay disciplined, and reassess your portfolio every 1-2 years for optimal growth.

 

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Nayagam P

Nayagam P P  |9419 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

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Bsc computer science Delhi University or VIT bhopal CSE cloud computing.....which is better
Ans: Poonam, Delhi University’s three-year B.Sc. (Hons Computer Science follows a Choice Based Credit System with 14 core papers—including Programming in C++, Java, Data Structures, Operating Systems, Computer Networks, Design and Analysis of Algorithms, Database Management Systems, Theory of Computation, Artificial Intelligence and Computer Graphics—supplemented by discipline-specific electives, generic electives and skill-enhancement courses totaling 140 credits under CBCS. The program enjoys AICTE approval, UGC recognition, NAAC ‘A+’ accreditation, a Central Placement Cell that achieved an 88.42% placement ratio in 2022-23 with 252 offers from 78 companies (highest-to-median packages undisclosed) and median UG packages of ?5.5 LPA (three-year) and ?8.5 LPA (four-year) as per NIRF 2024. DU benefits from a highly experienced, research-active faculty, extensive university clubs and industry tie-ups for internships, but admits only via DU-CET with limited seat flexibility and minimal specializations beyond core CS.

In contrast, VIT Bhopal’s four-year B.Tech CSE (Cloud Computing and Automation) is a 160-credit program featuring 55 credits of core CS (Data Structures, Algorithms, Operating Systems, Networks), 12 credits of cloud architecture and services, 15 elective credits (AI, ML, IoT, Cybersecurity, DevOps, Containerization, Blockchain), plus university and soft-skill courses under a Fully Flexible Credit System. Accredited by UGC, NAAC A++ (2021), NBA and ABET-aligned FFCS, it boasts 100% doctoral faculty, a 1:70–1:100 faculty-student ratio, dedicated cloud-computing labs, PARAM HPC access and a centralized VIT Career Development Centre recording over 90% placement for CSE branches with average packages near ?11 LPA and marquee recruiters across IT and core sectors. VIT offers semester-wise elective choice, lateral exit options and interdisciplinary projects, but commands higher fees (~?7.92 L) and admits via VIT-EEE or JEE Main rank.

While DU’s B.Sc. CS delivers rigorous theoretical grounding, diverse electives and cost-effective public-university benefits with strong placement support for core CS roles, VIT Bhopal’s CSE (Cloud Computing) provides specialized industry-aligned cloud curriculum, superior lab infrastructure, flexible credit system, higher placement percentages, and stronger corporate partnerships—albeit at greater cost and commitment.

Recommendation: For a student prioritizing a cost-effective, broad theoretical foundation with reputable public-university prestige and adequate placement infrastructure, B.Sc. (Hons.) CS at Delhi University is compelling. Conversely, for those seeking specialized cloud computing expertise, cutting-edge labs, flexible curriculum choices, higher placement rates and global industry tie-ups—even at higher fees—the B.Tech CSE (Cloud Computing and Automation) at VIT Bhopal is more aligned with emerging technology careers. All the BEST for a Prosperous Future!

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Dear Sir, My son has secured admission to Information Science Engineering (ISE) at Nitte Meenakshi Institute of Technology, Bangalore. He wanted to study at colleges like RVCE or PES, but based on his KCET/JEE rank, it is difficult to get admission to these colleges. Hence, I am exploring the option of a CSE management seat in these colleges. How are the future prospects of ISE at NMIT? Is it worth spending for a management seat? Your advice will greatly help us make a well-informed decision. Let me know if you need any further edits or have additional content to check!
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Rvs College of engineering Jamshedpur how do u rate?
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RVS College’s strong AICTE/NAAC credentials, industry-aligned curriculum, specialized labs and consistent 60–87% placement rates make it a solid choice for core engineering streams. Prospective students should engage proactively in its corporate workshops and alumni network to maximize internships and research-project opportunities. All the BEST for a Prosperous Future!

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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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