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Ramalingam

Ramalingam Kalirajan  |9865 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 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
Anuj Question by Anuj on May 09, 2024Hindi
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Hello sir , I am 32 year old I am a salaried person around 60k per month and want to start SIP for my children education I have two children one is 6 year old and another one is 3 year old. Please suggest me the best

Ans: It's fantastic that you're thinking ahead and planning for your children's education at such a young age. Starting SIPs (Systematic Investment Plans) is a smart way to build a corpus for their future educational expenses.
Considering your financial situation and your children's ages, here's a suggested approach:
1. Set Clear Goals: Determine the amount you'll need for each child's education, factoring in inflation and the type of education you aspire for them. This will help you set realistic investment targets.
2. Choose Suitable SIPs: Opt for diversified equity mutual funds that have a track record of consistent performance and align with your investment goals and risk tolerance. Look for funds with a long-term horizon and a focus on capital appreciation.
3. Allocate Funds Wisely: Divide your SIP investments among different funds to spread risk and maximize growth potential. Consider a mix of large-cap, mid-cap, and multi-cap funds to achieve diversification and optimize returns.
4. Start Early and Stay Consistent: Time is your biggest ally when it comes to investing. Start your SIPs as soon as possible to benefit from the power of compounding. Even small, regular investments can grow substantially over time with discipline and consistency.
5. Review and Adjust Regularly: Periodically review your SIP investments to ensure they're on track to meet your goals. Make adjustments as needed based on changes in your financial situation, market conditions, and investment objectives.
6. Stay Disciplined: Avoid the temptation to withdraw or stop your SIPs during market fluctuations. Stay focused on your long-term goals and continue investing consistently, regardless of short-term market movements.
7. Consider Tax Implications: Keep tax efficiency in mind while selecting SIPs. Opt for funds with favorable tax treatment like Equity Linked Savings Schemes (ELSS) for potential tax benefits under Section 80C of the Income Tax Act.
Remember, education is one of the most valuable investments you can make for your children's future. By starting SIPs early and staying disciplined, you can build a solid financial foundation to provide them with the best opportunities for education.

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  |9865 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2024

Asked by Anonymous - Jul 18, 2024Hindi
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HI, I am 41 years old and want to start a SIP to give a return of 20 lakh in next 15 yrs for children education. which fund I should choose?
Ans: Goal Assessment

You aim to accumulate Rs. 20 lakh over the next 15 years for your children's education.

Starting a SIP is a smart way to achieve this goal.

Let's explore the best approach to meet your objective.

Investment Horizon and Risk Appetite

You have a long-term horizon of 15 years.

This allows you to take on more risk for potentially higher returns.

Equity mutual funds are suitable for long-term goals.

Types of Equity Mutual Funds

Large-Cap Funds: Invest in big, stable companies. Less risky but moderate returns.

Mid-Cap Funds: Invest in medium-sized companies. Moderate risk and returns.

Small-Cap Funds: Invest in smaller companies. High risk but high returns.

Flexi-Cap Funds: Invest across various company sizes. Balanced risk and returns.

Why Not Index Funds?

Index funds follow the market. They lack active management.

Actively managed funds aim to beat the market.

This offers potentially higher returns.

For your goal, actively managed funds are better.

Benefits of Regular Funds

Professional Management: Managed by experts.

Personal Guidance: Certified Financial Planner can guide you.

Better Performance: Regular monitoring and adjustments.

Choosing the Right Funds

Diversify across different types of funds.

This balances risk and reward.

A mix of large-cap, mid-cap, and small-cap funds is ideal.

Example Allocation Strategy

Large-Cap Fund: 40% for stability and steady growth.

Mid-Cap Fund: 30% for moderate growth.

Small-Cap Fund: 20% for high growth potential.

Flexi-Cap Fund: 10% for balanced growth.

Regular Monitoring and Review

Review your investments annually.

Adjust based on performance and changing market conditions.

Seek advice from a Certified Financial Planner regularly.

Benefits of SIP

Discipline: Ensures regular investment.

Rupee Cost Averaging: Buys more units when prices are low.

Compounding: Helps in wealth creation over time.

Why Avoid Direct Funds?

Direct funds lack personal guidance.

You miss out on expert advice.

Certified Financial Planners provide valuable insights.

Final Insights

Starting a SIP for your child's education is a wise decision.

Choose a mix of large-cap, mid-cap, small-cap, and flexi-cap funds.

Regularly review and adjust your portfolio.

Seek professional guidance to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9865 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 29, 2024

Asked by Anonymous - Oct 28, 2024Hindi
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Hello Everyone one greetings! I am planning to start SIP. I AM 40 yrs n can invest 5000 monthly to start initially and continue for next 12-15yers. The goal to create some corpus for child education n their future needs.Any suggestion would help. I am unable find good fund across different fund houses. Thank you.
Ans: Starting a SIP with Rs. 5,000 per month is a great decision. With a disciplined approach over 12 to 15 years, this amount can grow significantly. Let’s structure your plan step by step.

1. Set Clear and Realistic Goals
Define how much you need for your child’s education or other future needs.

Estimate the timeline—when will the expenses occur (school, college, or higher education)?

Having a target amount will guide your investment strategy better.

2. Determine Your Risk Appetite
Since your investment horizon is 12 to 15 years, you can take moderate to high risks.

Long-term investments tend to perform better in equity-based funds.

If you want lower risk, you can mix equity with hybrid funds.

3. Avoid Index Funds and Choose Actively Managed Funds
Index funds may provide average returns, as they follow the market.

Actively managed funds can outperform markets, especially during volatility.

Professional fund managers adjust portfolios to benefit from changing market conditions.

This makes actively managed funds better suited for long-term goals.

 
4. Importance of Regular Funds over Direct Funds
Direct funds offer slightly lower costs but come with higher management challenges.

Choosing regular funds through a certified financial planner provides expert guidance.

They help you with fund selection, monitoring, and timely portfolio adjustments.

This ensures your investments stay aligned with your goals.


5. Diversify Across Different Fund Types
Spread your Rs. 5,000 SIP across multiple categories for better returns and risk management.

Consider allocating across large-cap, mid-cap, and hybrid funds.

Large-cap funds offer stability, while mid-cap funds provide growth potential.

Hybrid funds ensure some safety by combining equity and debt.

6. Increase SIPs Over Time
Start with Rs. 5,000 monthly and increase it by 10-15% annually.

This helps you counter inflation and meet rising education costs.

Even a small increase yearly will have a big impact over time.

7. Monitor and Rebalance Regularly
Track your portfolio performance every 6 to 12 months.

If a fund underperforms for long, switch to a better-performing fund.

As the education expenses approach, shift some investments to safer instruments.

This helps protect your corpus from sudden market drops.

8. Understand Taxation of Mutual Funds
For equity funds, long-term capital gains above Rs. 1.25 lakh attract 12.5% tax.

Short-term capital gains are taxed at 20%.

Debt funds are taxed according to your income tax slab.

Plan withdrawals smartly to reduce tax impact on your earnings.

9. Use Lump Sum Investments for Boosting Growth
Apart from SIPs, invest lump sums whenever possible, such as bonuses or gifts.

Lump sum investments in hybrid funds can stabilise returns.

This strategy will ensure your overall corpus grows faster.
10. Stay Disciplined During Market Volatility
The market may fluctuate, but SIPs work best during corrections.

Continue investing even in downturns to benefit from rupee cost averaging.

Avoid panic-selling during market dips.

Staying invested ensures long-term wealth creation.

11. Avoid Investment-Cum-Insurance Policies
If you hold LIC or ULIP policies, they may offer low returns.

Consider surrendering such policies and reinvesting the proceeds into mutual funds.

Keep insurance and investments separate for better financial outcomes.

12. Consult a Certified Financial Planner
A planner helps with fund selection, portfolio tracking, and risk management.

They offer valuable insights that ensure your investments stay on course.

Their expertise makes investing less stressful and more efficient for you.

13. Finally: Keep a Long-Term Focus
Building a corpus takes time, patience, and consistent effort.

Celebrate small milestones along the way to stay motivated.

Adjust your investments based on life changes, like additional children’s needs.
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  |9564 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Asked by Anonymous - Jul 28, 2025Hindi
Career
Sir I have got 5831 sc category rank in jee advanced and 24491 sc category,379243 crl rank in jee mains . I got nothing in jossa councelling is there any other option which I can opt or should I take 2nd drop ..... And I have also financial problem... Sir please tell me what should I do
Ans: With an SC category rank of 24,491 in JEE Main (CRL 379,243) and 5,831 in JEE Advanced, your prospects for admission to NITs, IIITs, or GFTIs in sought-after branches via CSAB rounds are extremely slim. Recent CSAB cut-off data confirm that ECE, CSE, and core engineering seats in NITs, IIITs, and GFTIs for the SC category close far above your rank; for many NITs, last closing ranks for CSE/ECE are usually under 10,000 for SC, with special rounds only rarely extending beyond 14,000. Even least preferred or remote branches rarely open at your ranking bracket. Nonetheless, you might still secure a seat in newer or less competitive GFTIs, non-core branches, or interdisciplinary programs during CSAB Special Rounds if you participate and fill as many choices as possible. The CSAB official portal facilitates late seat filling and occasional vacancies from withdrawals, but expectations for top branches or premium campuses must be realistic. If engineering is your only focus, you can also consider private or state engineering colleges accepting JEE scores, some of which offer scholarships and flexible fee payment options tailored for financial constraints. Pay close attention to daily CSAB notifications and use their predictor tools to estimate potential allotments in your bracket.

Recommendation: Participate fully in CSAB Special Rounds by registering and filling all eligible options to maximize your chances for any available seat in NITs, GFTIs, or IIITs, especially in less in-demand branches. Simultaneously, explore quality private engineering colleges with strong scholarships and low-cost options, as JEE ranks remain accepted in many. With significant financial limitation and a low likelihood of conversion in centrally funded institutes, use all backup options. If possible, try back-up options of Private Engineering Colleges too.

Pros and Cons of Taking a Drop Year: Taking a drop year after your ranks (SC 24,491 Mains, 5,831 Advanced) might offer better odds if you’re confident about substantial score improvement, as discipline and focused effort make a real difference, and many IIT entrants are droppers. This path requires financial resources (for coaching, materials), strong emotional resilience to manage pressure and potential isolation, and willingness to risk a year without guarantees. A drop year delays graduation, can increase stress, creates uncertainty, and—if you don’t qualify again—means missed current lower-cost college admission chances. For candidates with severe financial constraints, the risk may outweigh the reward unless you have clear preparation strategies, strong support, and tangible learning gains from prior attempts. It is advisable only if you are genuinely confident of significant and realistic improvements next year. All the BEST for a Prosperous Future!

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Asked by Anonymous - Jul 28, 2025Hindi
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I got 82 percentile in jee main general category will i get ece in csab...
Ans: With an 82 percentile in JEE Main for the general category, securing Electronics and Communication Engineering (ECE) in NITs, IIITs, or GFTIs through CSAB rounds is extremely unlikely. As per recent CSAB special round cutoffs, the minimum percentile required for ECE in general category at almost all NITs, IIITs, and GFTIs exceeds 90–92 percentile, with very few exceptions only for reserved or home state quotas. Even in the least competitive institutes and later CSAB special rounds, closing ranks for ECE branches remain much lower than an 82 percentile in the general category, making conversion in this branch improbable. Alternatives may exist in lower-demand or interdisciplinary streams in some GFTIs, but ECE at NIT/IIIT/GFTI is virtually out of reach for your percentile. Many reputed private engineering colleges in North and West India accept JEE Main percentiles in the 80–90 range for ECE, Computer Science, and related branches. These colleges provide quality education, recognized degrees, active placement cells, and exposure to core companies, making them a sound option as backup admissions in the absence of an NIT/IIIT/GFTI seat.

Recommendation
Given the percentile cutoffs for ECE, focus on private engineering colleges in North and West India that readily accept JEE Main scores in your range, and apply across several institutions to maximize your chances for ECE, while also using CSAB strictly as a backup for non-core branches.

List of 10 Private Engineering Colleges in North/West India Accepting 82 Percentile (General) for ECE (excluding BITS, Manipal, Amrita, VIT, South India):
Thapar Institute of Engineering & Technology, Patiala.
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Chandigarh University, Punjab.
UPES Dehradun, Uttarakhand.
Graphic Era University, Dehradun.
DIT University, Dehradun.
Galgotias University, Greater Noida.
Lovely Professional University (LPU), Punjab.
JECRC University, Jaipur.
Sharda University, Greater Noida.

Always confirm branch availability and admission norms on each college’s official website before applying, as cutoffs and seat matrix may change annually. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 28, 2025

Asked by Anonymous - Jul 28, 2025Hindi
Career
Hello sir, my daughter got computer science and medical engineering in Dayananda Harohalli Bangalore through KCET. Is it a good brach from job and future prospects?
Ans: The Computer Science & Medical Engineering program at Dayananda Sagar University’s Harohalli campus integrates core computer science with medical device design, biomedical signal processing, AI-driven diagnostics, and smart healthcare technologies in collaboration with IISc, NIMHANS, CDSIMER, GE Healthcare, and Philips. The curriculum emphasizes interdisciplinary laboratory work in embedded systems, IoT health monitors, medical imaging, wearables, and telemedicine, supported by state-of-the-art labs, a 900-bed NABH/NABL-accredited teaching hospital, and digital libraries on a sustainable 140-acre campus. Faculty include experienced professors and clinicians ensuring a balance of theoretical rigor and clinical exposure. Over the past three years, Dayananda Sagar’s overall engineering placement rate has averaged around 96% with major recruiters like Amazon, Bosch, Cognizant, and Infosys visiting campus, and medical engineering graduates benefit from niche MedTech roles, internships in hospital research units, and startup incubators. The program addresses rising global demand for biomedical data scientists, medical robotics engineers, and healthcare AI specialists, aligning with India’s Make in India MedTech vision. Key institutional strengths include robust industry partnerships, cutting-edge infrastructure, comprehensive student support services, active research centers, and an autonomous evaluation system facilitating continuous innovation and employability readiness.

Recommendation: Given its interdisciplinary curriculum, strong industry-academic collaborations, high placement percentages, and direct access to a teaching hospital, the CS & Medical Engineering program at Dayananda Sagar’s Harohalli campus offers compelling future prospects in MedTech, healthcare AI, and biomedical instrumentation, making it an excellent choice for your daughter’s engineering career. All the BEST for a Prosperous Future!

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Mutual Funds, Financial Planning Expert - Answered on Jul 28, 2025

Asked by Anonymous - Jul 28, 2025Hindi
Money
Dear Team: I have moved out of India more than a year ago for job reasons and employed at Germany , I hold multiple investments in stocks approx 10L and mutual funds approx 20L through various fundhouses. All these investments were made when I was employed in India. I plan to return to India after 3-4 years, should I continue to hold these investments as is? Or should I be converting these investments? Or should I be withdrawing them? Could you please suggest the right option to be compliant with IT regulations. Thanks in advance
Ans: You have built a good investment base before shifting to Germany. Maintaining compliance and preserving these investments for your return is very important. Here is a 360-degree view of your choices.

? Understand Your Tax Residency Status
– Your tax residency status in India determines compliance.
– India follows residential status based on days spent in India.
– If you are NRI, you are taxed only on Indian income.
– Mutual fund capital gains in India are still taxable when redeemed.
– If you remain resident, global income becomes taxable in India.
– Confirm your residency status each year based on Indian rules.
– Filing ITR correctly matters. Non-compliance can attract penalties.

? Continue Holding Investments - Benefits and Risks
– Holding mutual funds and stocks keeps them invested for future growth.
– They continue compounding until you return.
– You avoid capital gains tax until redemption.
– But you still must file ITR annually.
– You may need to declare them in schedule for your NRI status.
– You also must ensure KYC and FATCA filings are up-to-date.
– Let these grow if your goal is long-term preservation.
– Investments in Indian mutual funds are easy to redeem when you return.
– Avoid direct index funds or international funds; they don’t give downside protection.
– Prefer actively managed funds through regular plans.
– As you plan to return, long-term equity exposure can continue.

? Switching or Converting Investments
– You may consider converting direct equity or equity funds.
– But conversion to NFO or fund switch may trigger tax if sold.
– A switch within fund family is treated as redemption.
– Conversions rarely help unless fund is poor performer.
– Better is to continue the existing fund if performance is acceptable.
– If you find underperformers, exit gradually to manage tax and timing.
– Avoid moving money to products that attract more tax or lock-in.

? Option to Redeem Investments Before Return
– You could redeem some or all mutual funds before returning.
– LTCG applies at 12.5% above Rs 1.25 lakh exempt threshold.
– STCG taxed at 20%. Plan redemptions across years to reduce tax burden.
– Redeem in stages, ideally over 3 years, to avoid large tax impact in one year.
– Use proceeds to invest in safer assets or move to Germany if needed.
– But keep remaining money invested to benefit from long-term compounding.
– Redeeming entirely early may reduce growth potential.

? Income Tax Compliance While Abroad
– NRIs must file income tax return if taxable in India.
– Dividend from mutual funds and stocks is taxable but with TDS.
– If TDS exceeds tax liability, claim refund by filing return.
– Bonus dividends may attract higher TDS.
– You must maintain bank FDs or mutual fund interest records to file ITR.
– Provide your foreign address in Form 15CA/15CB if you remit money abroad.
– Failure to comply can lead to penalties or interest charges.

? Goal Alignment for Return after 3–4 Years
– Your goal is to return in 3–4 years. Use that to plan investments.
– If you will need funds soon after return, start partial redemptions in advance.
– For long-term needs post-return, keep equity investments intact.
– If you plan to purchase property or fund family goals on return – create separate mutual fund bucket now.
– Reb alance so short-term needs are in liquid or conservative funds.
– Preserve mid-to-long-term corpus in equity funds via SIP or lumpsum.

? Use Regular Plan Route, Avoid Direct Plans
– NRI investors sometimes choose direct plan to save fees.
– But direct plans lack professional guidance, reviews, and rebalancing.
– For long-term benefit and oversight, prefer regular plan route.
– A Certified Financial Planner ensures goal tracking and risk management.
– This becomes more useful as your residency and tax laws evolve.

? Avoid Index Funds and ETFs for This Money
– Index funds replicate market index. There is no downside cushion.
– When markets fall, they drop fully.
– They do not adapt to changing market conditions.
– Actively managed funds provide risk monitoring and strategic shifting.
– For important goals and international residency shifts, that flexibility is valuable.

? Consider Currency Planning
– When you return, you may bring back funds to Indian rupees.
– Keep currency exchange rate in mind. Converting at unfavorable rate reduces value.
– If you plan to continue holding investments in India, there is no currency risk until you remit.
– But if redeeming while abroad, choose optimal timing for rupee strength.
– You may use NRO bank account for Indian investments and NRE for remittance.
– Consult a tax aware advisor in Germany and India to avoid double tax issues.

? Keep Documents Well?Organised
– Maintain fund investment statements, dividends and transaction details.
– File ITR showing these investments and any tax paid.
– This ensures legal compliance on return.
– If you receive letters from mutual fund houses or tax authorities, respond promptly.
– Declare capital gains correctly to avoid penalty interest.

? Action Plan Summary
– Confirm your tax residency status each financial year.
– Continue holding good-performing mutual funds and stocks.
– Use regular funds via CFP for goal tracking.
– Identify any poor-performing assets and exit gradually.
– If planned return expense is due soon after return, begin phased redemption.
– Spread capital gains across multiple years to reduce tax.
– Build a goal bucket if you expect expenses on return.
– Keep fund and dividend tax records for compliance.
– Avoid index funds and direct plans. Stick to active mutual funds via regular plan.
– Maintain NRO/NRE account correctly. Monitor FATCA reporting and PAN filings.

? Final Insights
You have maintained a well?built equity base even after moving abroad. Continuing your investments with thoughtful planning is wise. The focus should be on compliance, risk alignment, and goal linkage. Avoid impulsive redemption or shifting without strategy. With a certified financial planner guiding you via regular fund plans, you can preserve this wealth, remain tax?compliant, and use it effectively when you return in 3?4 years.

Your financial horizon remains strong even from abroad. Smart timing, structured withdrawals, ongoing oversight and goal clarity will help you bridge between Germany and your future back in India confidently.

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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