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Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 14, 2025

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 14, 2025
Money

Hello, I am 34. I have accumulated a lump sum of 6 lakh from the bonus I received in the last two years. I have fixed deposit with 4 lakh. I don't want to take a high risk but I still hope to see some reasonable growth in the next 5 years to buy a property in my village, approx Rs 1-1.5 crore. Can you suggest suitable investment options like hybrid or short-term debt funds?

Ans: At 34, it’s impressive to see your discipline and savings mindset. Accumulating Rs 6 lakh from bonuses, along with Rs 4 lakh in fixed deposit, shows your focus on long-term financial goals. Your plan to buy a property in your village within 5 years is very practical. Your low-risk preference is also quite valid considering the nature of your goal.

Now let’s explore suitable investment options for your 5-year goal, keeping your risk appetite and returns expectation balanced.

Importance of Capital Safety with Moderate Growth
You want moderate growth, but capital safety is also a top concern.

That’s a smart way to think for a short-to-medium term goal like property purchase.

In 5 years, market-linked instruments can give better returns than bank FDs.

But full equity exposure is not suitable due to market ups and downs.

So, we need instruments that balance risk and return effectively.

That’s why hybrid and debt-oriented mutual funds become important to consider.

Hybrid Funds: Balanced Exposure with Controlled Risk
Hybrid funds invest in both equity and debt instruments.

They reduce risk by mixing stable debt with growth-oriented equity.

There are different types of hybrid funds. Each suits a different risk level.

Conservative hybrid funds have 75-90% in debt and only 10-25% in equity.

They suit investors like you who want low risk and better-than-FD returns.

These funds provide stable growth with lower volatility.

Over 5 years, they may offer more than FDs without extreme risk.

Aggressive hybrid funds have 65-80% in equity and rest in debt.

They are not ideal for your current goal due to higher equity exposure.

Stick with conservative or balanced hybrid funds for your 5-year window.

Short Duration Debt Funds: Low Volatility and Steady Returns
These funds invest in bonds with maturity of 1 to 3 years.

They give better returns than savings or FDs with less interest rate risk.

They are ideal if you want predictable income with low risk.

In 5 years, they can perform better than FDs post-tax.

You can consider these for parking the full or partial Rs 6 lakh.

You get easy liquidity and no lock-in period unlike FDs.

These funds suit conservative investors aiming for steady returns.

Banking and PSU Debt Funds: Lower Risk, Higher Quality
These funds invest in safe public sector and banking bonds.

Credit risk is very low as they avoid private sector papers.

They suit people who want safety, liquidity, and reasonable returns.

Not as volatile as long-term debt or credit risk funds.

They provide better post-tax returns than FDs, especially if held long-term.

These funds work well in a stable interest rate environment.

Ideal for you if you don’t want surprises or big risks.

Corporate Bond Funds: Stability with Slightly Better Yield
These invest in top-rated corporate bonds.

The risk is a bit higher than banking & PSU debt funds.

But the return potential is better than short-term FDs.

If you are okay with very limited additional risk, this is worth exploring.

Avoid low-credit-rating debt funds. They come with hidden dangers.

Always check for AAA-rated securities in these funds.

Dynamic Asset Allocation Funds: Adjust Automatically
These funds move between equity and debt based on market trends.

In bull markets, they increase equity. In bear markets, they increase debt.

You don’t need to time the market yourself.

They are good for medium-term investors like you.

Though they carry more equity risk than conservative hybrid funds.

If you’re open to small equity exposure, this type may work.

Choose only those funds with proven consistency over 5+ years.

Keep FD as a Backup, Not Main Investment
You already have Rs 4 lakh in fixed deposit.

That’s a strong emergency reserve or parking fund.

Don’t rely entirely on FDs for your Rs 6 lakh bonus.

FD returns may not beat inflation over 5 years.

So diversify your savings beyond traditional FDs.

How to Divide the Rs 6 Lakh for Better Outcome
Here’s a sample allocation approach based on your goals:

Rs 2.5 lakh in conservative hybrid funds for mild equity exposure.

Rs 2 lakh in short duration debt funds for safety and growth.

Rs 1.5 lakh in banking & PSU or corporate bond funds.

This mix offers low risk, moderate returns, and good liquidity.

Review the mix yearly and rebalance if needed.

SIP Option Also Worth Considering
Even for lump sum, you can deploy in 3-6 monthly tranches.

This reduces market timing risk if choosing hybrid funds.

You can use STP (Systematic Transfer Plan) from liquid fund to hybrid fund.

This gives peace of mind and disciplined investing.

Taxation on Mutual Funds: What You Need to Know
Equity-oriented hybrid funds have new tax rules now.

LTCG above Rs 1.25 lakh is taxed at 12.5%.

STCG is taxed at 20% for equity funds.

For debt mutual funds, gains are taxed as per your income slab.

But post-tax returns of mutual funds can still beat FD returns.

Why Not Index Funds or ETFs for This Goal?
Index funds may seem low-cost but have limitations.

They copy the market. No chance to beat the market.

You carry full market risk without any downside protection.

In volatile times, actively managed funds protect better.

Certified Financial Planners often prefer active funds for mid-term goals.

Especially when capital protection is equally important.

Avoid Direct Funds Without Guidance
Direct mutual funds may have lower expense ratio.

But they offer no advisor support or guidance.

Choosing the wrong fund in direct mode can cost more.

Regular plan through a qualified Mutual Fund Distributor with CFP support gives tailored advice.

That helps in rebalancing and tax planning too.

Avoid Over-Diversification
Don’t choose too many schemes just to feel “safe.”

Stick with 3-4 good schemes that align with your goal.

Too many funds dilute returns and become hard to track.

Quality over quantity always works better in mutual fund investing.

Monitor and Reassess Yearly
Every year, review performance of your funds.

If returns are way off your expectations, consider switching.

You can also reduce equity exposure as you approach the 5th year.

This protects your capital from last-minute shocks.

Emotional Discipline is Very Important
Don’t chase high returns or panic during market drops.

Focus on staying invested for full 5 years.

That’s when compounding and averaging truly work.

Emotional discipline beats clever timing every time.

Finally
You’ve made a solid start by saving Rs 6 lakh with intention.

Use this amount wisely by diversifying across hybrid and debt funds.

Avoid going fully equity due to the short investment horizon.

Stick with high-quality funds, reviewed annually.

Keep your FD as liquidity cushion, not for wealth building.

Work with a Certified Financial Planner if you need hand-holding.

This way you’ll grow your capital safely, and meet your goal in 5 years.

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.
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Ramalingam Kalirajan  |8482 Answers  |Ask -

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

Asked by Anonymous - Nov 03, 2023Hindi
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Money
I am 60 years old( male) just retired with 3.0 cr as retirement corpus with property worth 5 cr , montly pension of Rs 1.2 lac with the total liability of 0.8 cr . How do you suggest me to invest further. ?
Ans: Congratulations on your retirement and for having a substantial retirement corpus! Given your assets, liabilities, and monthly pension, here's a suggested investment approach tailored to your age and financial situation:

Emergency Fund: Ensure you have an emergency fund set aside, equivalent to 6-12 months of living expenses. This will provide peace of mind and financial security.
Debt Repayment: With a liability of 0.8 cr, prioritize paying off this debt. Consider using a portion of your retirement corpus to clear this liability to reduce your monthly expenses and free up your monthly pension for investments and living expenses.
Stable Income Investments: With retirement, your focus might shift towards generating a regular income. Consider investing a portion of your corpus in fixed income instruments like Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), or Monthly Income Plans (MIPs) from mutual funds. These can provide regular income while preserving the capital.
Equity Investments: While it's essential to have a stable income, don't ignore the potential of equity investments. Given your retirement corpus and property value, you can afford to take some calculated risks for higher returns. Consider investing a portion in balanced funds or conservative hybrid funds which provide a mix of equity and debt.
Real Estate: You already have a property worth 5 cr. If you're open to it, consider diversifying by investing in Real Estate Investment Trusts (REITs) or real estate mutual funds, which offer exposure to the real estate market without the hassle of owning physical property.
Regular Financial Health Checks: As you navigate your retirement, it's crucial to review your investments periodically. With changing economic conditions and personal needs, your investment strategy may need adjustments. Consider consulting a financial advisor annually to ensure your investments align with your goals.
Remember, the goal in retirement isn't just about growing wealth but also ensuring it lasts and supports your lifestyle throughout your retired years. Enjoy your retirement and the financial freedom it brings!

..Read more

Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

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

Asked by Anonymous - Jul 13, 2024Hindi
Money
Greetings I am retiring in April 2027. I may get a retirement corpus of around 2Cr. I have FDs of around 60 L Mutual Funds 40L. I have two flats and the home loan of one flat will be repaid before my retirement. For the other flat there is no loan. Myself and my wife have ancestors property (land)valued at around 6 Cr. I may need a monthly income of 75 K.Kindly suggest investment options for me
Ans: First, congratulations on your upcoming retirement. You've done a great job building a solid financial foundation. You have a diverse portfolio with fixed deposits, mutual funds, real estate, and ancestral property. This diversification provides stability and potential growth.

Your expected retirement corpus of Rs. 2 crore is substantial. With this, along with your current assets and minimal loan commitments, you are well-positioned for a comfortable retirement. Let's evaluate your options to generate a monthly income of Rs. 75,000 while ensuring your capital grows and remains secure.

Creating a Retirement Income Plan
Fixed Deposits (FDs)
You have Rs. 60 lakhs in fixed deposits. FDs offer security and guaranteed returns. However, their interest rates may not keep pace with inflation. It's wise to keep a portion of your retirement corpus in FDs for liquidity and safety. Allocate around 20-25% of your corpus here.

Mutual Funds
You already have Rs. 40 lakhs in mutual funds. Mutual funds are excellent for growth and can be tailored to match your risk tolerance. Consider the following types of funds:

Balanced Funds

Balanced funds provide a mix of equity and debt. They offer growth potential while minimizing risk. Given your age and risk tolerance, a balanced fund can help maintain stability.

Equity Funds

Equity funds are suitable for long-term growth. They can be volatile, but with a horizon of 10-15 years, they can significantly enhance your returns. Diversify across large-cap, mid-cap, and multi-cap funds to spread risk.

Debt Funds

Debt funds are less risky and provide regular income. They are good for short-term needs. Invest in high-quality debt funds to ensure safety and reasonable returns.

Systematic Withdrawal Plan (SWP)
Use an SWP from your mutual fund investments to generate a regular income. It allows you to withdraw a fixed amount monthly, providing you with Rs. 75,000. This method ensures that your capital continues to grow while providing you with the needed income.

Additional Investment Options
Senior Citizens' Saving Scheme (SCSS)
SCSS is a government-backed scheme offering attractive interest rates and regular income. It's safe and suitable for retirees. You can invest up to Rs. 15 lakhs individually or Rs. 30 lakhs jointly. The interest is paid quarterly, providing a steady income.

Post Office Monthly Income Scheme (POMIS)
POMIS is another secure option. It offers a fixed monthly income and is backed by the government. You can invest up to Rs. 4.5 lakhs individually or Rs. 9 lakhs jointly. The interest rate is competitive, and the monthly payout can supplement your income.

Corporate Bonds and Non-Convertible Debentures (NCDs)
Investing in high-rated corporate bonds and NCDs can provide higher returns than traditional FDs. They come with a fixed tenure and interest rate, offering a predictable income stream. Ensure to choose high-rated instruments to minimize risk.

Dividend-Paying Stocks
Investing in blue-chip companies that pay regular dividends can provide a steady income. Dividends are usually paid quarterly and can supplement your monthly income. Choose companies with a strong track record of consistent dividends.

Monthly Income Plans (MIPs)
MIPs offered by mutual funds invest predominantly in debt instruments with a small portion in equity. They aim to provide regular income and capital appreciation. MIPs can be a good option for generating monthly income with moderate risk.

Assessing Risks and Diversification
Risk Assessment
Retirement planning requires balancing risk and returns. While you need growth to beat inflation, capital preservation is equally crucial. Assess your risk tolerance and align your investments accordingly. A mix of safe and growth-oriented investments will ensure stability and growth.

Diversification
Diversification reduces risk and enhances returns. Spread your investments across different asset classes like FDs, mutual funds

, government schemes, and stocks. This strategy ensures that poor performance in one area does not significantly impact your overall portfolio.

Tax Efficiency and Planning
Tax-Saving Instruments
Maximize your tax benefits by investing in tax-saving instruments under Section 80C, such as Equity-Linked Savings Schemes (ELSS) and SCSS. These instruments help reduce your taxable income while offering growth and regular income.

Tax on Returns
Understand the tax implications of your investments. For instance, interest from FDs and SCSS is taxable, while long-term capital gains from equity mutual funds enjoy favorable tax treatment. Plan your withdrawals and investments to minimize tax liabilities.

Health Insurance
Ensure you and your wife have adequate health insurance coverage. Medical expenses can erode your retirement corpus quickly. A comprehensive health insurance plan will provide peace of mind and financial security.

Estate Planning
Wills and Trusts
Estate planning is essential to ensure your assets are distributed according to your wishes. Draft a will to specify how your properties and investments should be allocated. Consider setting up a trust for efficient estate management and to minimize disputes among heirs.

Nomination and Succession
Ensure all your financial instruments have updated nominations. This simplifies the process for your heirs and ensures that your assets are transferred smoothly. Discuss your plans with your family to avoid confusion and misunderstandings later.

Emergency Fund
Liquidity
Maintain an emergency fund equivalent to 6-12 months of your monthly expenses. This fund should be easily accessible and kept in a liquid instrument like a savings account or a liquid mutual fund. It provides a financial cushion for unexpected expenses.

Reviewing and Adjusting Your Plan
Regular Reviews
Regularly review your investment portfolio to ensure it aligns with your goals and risk tolerance. Financial markets and personal circumstances change, so adjust your plan accordingly. Seek advice from a Certified Financial Planner to stay on track.

Rebalancing
Rebalancing your portfolio periodically is crucial to maintain your desired asset allocation. If your equity investments perform well, they might constitute a larger portion of your portfolio, increasing risk. Rebalance by selling a portion of equity and investing in debt to restore balance.

Stay Informed
Keep yourself informed about financial markets and new investment opportunities. Continuous learning helps make informed decisions and adapt to changing market conditions. Subscribing to financial newsletters and attending seminars can enhance your knowledge.

Long-Term Growth Strategies
Equity Investments
For long-term growth, maintain a portion of your portfolio in equity investments. Equities have historically outperformed other asset classes over the long term. However, they come with higher risk, so balance your equity exposure based on your risk tolerance.

Real Assets
While you've asked not to consider real estate, it's worth mentioning that your ancestral property is a significant asset. Ensure it is well-maintained and consider potential income streams from it, such as renting or leasing, to supplement your retirement income.

Genuine Compliments and Appreciation
You have done an admirable job of planning and saving for your retirement. Your diverse portfolio, debt-free lifestyle, and significant assets reflect careful planning and financial discipline. It’s evident that you have a clear vision for a comfortable and secure retirement.

Your meticulous approach towards ensuring a regular income and safeguarding your assets for the future is commendable. You’ve laid a strong foundation for your golden years, and with a few strategic adjustments, you can enjoy a financially worry-free retirement.

Final Insights
Retirement planning is a continuous process that requires regular monitoring and adjustments. Your primary goal should be to ensure a stable and sufficient income while preserving your capital. Diversify your investments, assess risks carefully, and make informed decisions.

Utilize safe investment options like SCSS, POMIS, and high-rated corporate bonds for regular income. Consider mutual funds for growth, and always keep an emergency fund. Regular reviews and rebalancing will keep your portfolio aligned with your goals.

Stay informed, and don’t hesitate to seek advice from a Certified Financial Planner to optimize your strategy. Your proactive approach and diversified portfolio set you up for a successful and enjoyable retirement. Keep up the good work and continue to make prudent financial decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

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

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I am 40 and plan to accumulate around 7cr in next 10 years. I have 1 cr in mutual fund, 65 lacs in equity. Having sip of 45000 per month. Insurance 5 lacs in ulip having death insurance of 50lac and 10 lac insurance in lic , FD of 35 lacs, PF 19 lac, ppf 1.2 lacs , 1 lac of govt gold bond . cash in bank of 10 lacs.have some amount approx 20 lac which are on loanto relatives will get back in 2 years having 2 children of age daughter 10 and son 5 years .Please advise which funds to invest in.I have one home of approx 3 cr in gr Noida and one property in yamuna expressway authority of approx current value 2.5 cr.i am having salary of 1 lac. Investing 10k in vpf.
Ans: Current Financial Snapshot
You have a diverse portfolio.

You have investments in mutual funds, equity, insurance, FD, PF, PPF, and gold bonds.

You also own properties in Greater Noida and Yamuna Expressway.

You have a good monthly salary and a structured SIP.

Your financial goals are clear.

Asset Allocation Evaluation
Mutual Funds
You have Rs 1 crore in mutual funds.

This is a strong investment, but diversification within mutual funds can be improved.

Consider including a mix of large-cap, mid-cap, and small-cap funds.

Actively managed funds can offer better returns than index funds due to expert management.

Equity
Rs 65 lakhs in direct equity is commendable.

Ensure you regularly review your portfolio.

Rebalance based on market conditions and company performance.

Systematic Investment Plan (SIP)
You have a SIP of Rs 45,000 per month.

This is a disciplined approach.

Consider increasing your SIP amount gradually.

This will help you achieve your goal of Rs 7 crore in 10 years.

Insurance
You have ULIP and LIC policies.

ULIPs often have high charges and low returns.

Consider surrendering your ULIP and reinvesting in mutual funds.

LIC policies are good for insurance but not for investment.

Evaluate if term insurance can provide better coverage at a lower cost.

Fixed Deposits (FD)
You have Rs 35 lakhs in FD.

FDs are safe but offer low returns.

Consider diversifying a portion of this into higher-yield investments.

Provident Fund (PF) and Public Provident Fund (PPF)
You have Rs 19 lakhs in PF and Rs 1.2 lakhs in PPF.

These are excellent for long-term, tax-free returns.

Continue with your contributions to PPF.

Gold Bonds
Rs 1 lakh in government gold bonds is a good hedge.

Gold is a good diversification tool.

Cash in Bank
You have Rs 10 lakhs in the bank.

Keep sufficient liquidity for emergencies.

Consider moving excess funds to higher-yield investments.

Loans to Relatives
You have Rs 20 lakhs given as a loan to relatives.

Ensure you have a clear agreement for repayment.

Reinvest this amount once received.

Real Estate
You own properties worth Rs 5.5 crore.

These are significant assets.

Keep them for long-term appreciation.

Investment Strategy Recommendations
Diversify Mutual Funds
Invest in a mix of large-cap, mid-cap, and small-cap funds.

Actively managed funds can provide better returns.

Increase SIP
Increase your SIP amount to Rs 50,000 or more.

This accelerates wealth accumulation.

Rebalance Portfolio
Regularly review and rebalance your portfolio.

Shift funds based on performance and market conditions.

Evaluate Insurance Needs
Consider term insurance for better coverage.

Reinvest savings from ULIP in mutual funds.

Fixed Deposit Diversification
Move a portion of FD to mutual funds.

This can yield higher returns over time.

Continue Provident Fund Contributions
Keep contributing to PF and PPF.

These are tax-efficient and offer stable returns.

Maintain Gold Investments
Keep investing in gold bonds.

Gold provides a good hedge against market volatility.

Plan for Loan Repayment
Ensure timely repayment of loans to relatives.

Reinvest the recovered amount strategically.

Final Insights
Your goal of Rs 7 crore in 10 years is achievable.

Diversify and rebalance your investments.

Increase SIP gradually.

Evaluate and optimize insurance coverage.

Maintain liquidity but seek higher returns on excess funds.

Plan and invest wisely for your children's future.

Regular review and disciplined investing are key.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

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

Asked by Anonymous - Aug 04, 2024Hindi
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Hello sir. I am 31years old women wanted to understand some good investments funds for both long and short term I want to buy a house in next 5yrs(budget 35-40lacs) so to make it possible in a state of Mumbai Which plans will be best and for same how much we need to invest with minimal risk.
Ans: You are 31 years old.
Your goal is to buy a house in Mumbai in the next 5 years with a budget of Rs. 35-40 lakhs.
You seek investments for both long-term and short-term with minimal risk.
Financial Planning for House Purchase
Short-Term Investment Strategy (5 Years)
Recurring Deposits (RDs):

Suitable for disciplined savings.
Low risk and guaranteed returns.
Ideal for accumulating funds over a fixed period.
Bank Fixed Deposits (FDs):

Safe investment with fixed returns.
Opt for a laddering strategy to ensure liquidity.
Debt Mutual Funds:

Invest in high-quality corporate bonds and government securities.
Lower risk compared to equity funds.
Suitable for generating stable returns with moderate risk.
Suggested Allocation for Short-Term
Recurring Deposits (RDs): 30%

Provides disciplined savings with fixed returns.
Bank Fixed Deposits (FDs): 40%

Safe investment with fixed returns.
Ensure liquidity by laddering FDs.
Debt Mutual Funds: 30%

Invest in high-quality debt funds for stability.
Aim for moderate returns with lower risk.
Calculating Monthly Investment for House Purchase
Assuming you need Rs. 40 lakhs in 5 years.
Recurring Deposits (RDs): Rs. 12 lakhs
Monthly investment: Rs. 20,000 (approx.)
Bank Fixed Deposits (FDs): Rs. 16 lakhs
Monthly investment: Rs. 27,000 (approx.)
Debt Mutual Funds: Rs. 12 lakhs
Monthly investment: Rs. 20,000 (approx.)
Long-Term Investment Strategy
For Retirement and Other Long-Term Goals
Public Provident Fund (PPF):

Safe investment with tax benefits.
Long lock-in period suitable for retirement savings.
Employee Provident Fund (EPF):

Ensure regular contributions if employed.
Provides long-term growth with tax benefits.
Equity Mutual Funds:

Invest in high-quality actively managed funds.
Aim for long-term growth with moderate to high risk.
Suitable for wealth creation over 10-15 years.
Systematic Investment Plan (SIP):

Regular investment in equity mutual funds.
Helps in rupee cost averaging and disciplined investing.
Suggested Allocation for Long-Term
Public Provident Fund (PPF): 20%
Provides safe returns with tax benefits.
Employee Provident Fund (EPF): 20%
Ensure regular contributions for long-term growth.
Equity Mutual Funds: 60%
Invest in high-quality actively managed funds.
Aim for wealth creation over the long term.
Final Insights
For Short-Term: Invest in recurring deposits, fixed deposits, and debt mutual funds for house purchase.
For Long-Term: Invest in PPF, EPF, and equity mutual funds for wealth creation and retirement.
With disciplined investing and regular reviews, you can achieve your financial goals with minimal risk.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 16, 2024

Asked by Anonymous - Dec 13, 2024Hindi
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I have a sum of 1.5 lakh rupees which I want to invest but in diverse options. What could be such schemes for investment long term
Ans: Investing Rs. 1.5 lakh is a great opportunity to build a solid portfolio. A diversified approach ensures balanced risk and stable long-term growth. Below are well-suited options to consider for your investment.

Mutual Funds for Wealth Creation
1. Equity Mutual Funds
These funds are ideal for long-term goals.
They invest in stocks and offer high returns compared to other instruments.
Actively managed funds help you outperform market indices.
2. Balanced Advantage Funds
These funds balance equity and debt investments.
They reduce volatility while offering reasonable returns.
Suitable for moderate risk appetite and long-term growth.
3. Debt Mutual Funds
These funds are safer and provide predictable returns.
Useful for preserving capital and managing portfolio risk.
Invest in debt funds for goals within 3-5 years.
Government-Backed Schemes
4. Public Provident Fund (PPF)
PPF offers guaranteed returns with tax benefits.
The lock-in period is 15 years, aligning with long-term goals.
Interest earned is tax-free and compounds annually.
5. Sukanya Samriddhi Yojana (SSY)
Consider SSY if you have a daughter under 10 years of age.
High fixed returns and tax benefits make it a secure option.
Ideal for building a corpus for your daughter’s education or marriage.
6. National Pension System (NPS)
NPS is designed for retirement planning.
It provides equity exposure with low management costs.
Tax benefits under Section 80C and 80CCD (1B) enhance returns.
Gold as a Strategic Investment
7. Sovereign Gold Bonds (SGBs)
SGBs offer the benefit of gold investment without storage concerns.
These bonds provide annual interest along with gold price appreciation.
Ideal for long-term wealth preservation and diversification.
Emergency Fund and Liquid Options
8. Liquid Mutual Funds
Allocate a small portion to liquid funds for emergencies.
These funds offer easy withdrawal and low risk.
Returns are better than traditional savings accounts.
9. Recurring Deposits or Fixed Deposits
Recurring deposits help you create a short-term savings buffer.
Fixed deposits offer guaranteed returns but are less tax-efficient.
Insurance-Cum-Investment Policies
10. Review Existing LIC or ULIP Policies
Insurance-cum-investment products often deliver low returns.
Assess the surrender value of such policies.
Reinvest the amount in mutual funds for better returns.
Suggested Allocation Strategy
To diversify Rs. 1.5 lakh, consider this allocation:

Rs. 50,000: Equity Mutual Funds for long-term wealth creation.
Rs. 30,000: Balanced Advantage Funds for moderate risk exposure.
Rs. 20,000: Public Provident Fund for secure, tax-free growth.
Rs. 20,000: Sovereign Gold Bonds for diversification.
Rs. 30,000: Liquid Funds for emergencies or short-term needs.
Tax Efficiency
Mutual funds provide tax efficiency for long-term gains.
LTCG above Rs. 1.25 lakh is taxed at 12.5% for equity mutual funds.
Debt mutual funds are taxed as per your income slab.
Government-backed schemes like PPF and SSY offer tax-free returns.
Finally
Your Rs. 1.5 lakh can grow steadily through diversified investments.

Mutual funds should form the core of your portfolio for wealth creation.

Add secure options like PPF and SGBs for balance and stability.

Review your existing LIC policies and move towards higher-return investments.

Stay disciplined and monitor your portfolio regularly with the help of a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Career Counsellor - Answered on May 21, 2025

Career
Sir, I have got 87% marks in mains. Please tell me a college where I can get a branch.
Ans: Aditi, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced Results – A Step-by-Step Guide

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Also, please have some other back-up options instead of relying only on JEE/JoSAA/NITs/IIITs/GFTIs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions and a bright future!

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