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Ramalingam

Ramalingam Kalirajan  |7948 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 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
Kaustubh Question by Kaustubh on May 09, 2024Hindi
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Hello. I am 41 years old and I am planning to open my own small business of food outlet as I was in same industry in next 1 month after planning of 1.5 years. Currently I have below savings. 4,00,000/- in NPS adding 5,000 each month. 6,00,000/- in PPF adding 5,000 each month. I have below SIP. Franklin India tax shield growth. Investment is 10,70,000/- and gain is 51,21700/- 5000 SIP. HDFC Defense fund regular growth. Investment is 33,000/- and gain is 15,538/- 3000 SIP. HDFC Flexi Cap Fund Direct growth. Investment is 5,48,000/- and gain is 11,70,600/- 4000 SIP. And also invested in below mutual funds as lumpsum. Aditya Birla sunlife Equity Hybrid fund growth. AXIS small cap fund regular growth. HDFC Balanced Advantage Fund direct growth HDFC Midcap opportunities fund regular growth HDFC NIFTY200 momentum index fund growth HDFC small cap fund direct growth HDFC top 100 fund direct growth ICICI Prudential Bluechip Fund Growth Motilal Oswal large and mid cap fund growth Motilal Oswal small cap fund regular growth Nippon India multi cap fund retail plan growth Nippon India small cap fund growth Quant small cap fund regular growth SBI contra fund growth UTI MNC fund growth. Total Investment is 21,50,000/- and gain is 16,70,000/- which was reinvested as tax-harvesting in same mutual funds. Since my age of 25 I have started investing 10,000/- in NSC. And after maturing after 5 years add 15,000/- and make it round figure value in and then some same thing in my years of 35 to 40 years. Invested 25,000/- and made round five and invested in NSC. I get maturity of NSC on 1st of every month now. I have 25,00,000 as emergency fund kept in FDs in bank. And I have also invested if Rs. 12,00,000 in shares from which gain is of 6,00,000/- Investmentv in physical gold is 3,50,000/- from which gain is 35,00,000/- Investment in physical silver is 75,000/- from which gain is 3,50,000/- ULIP investment is 1,50,000/- and gain is 2,70,000/- My monthly income is the income which I receive from FDs and NSC maturation which I reinvest now. My expenses exceeds no more than 65,000/- which includes SIP investment and PPF and NPS investments. I have my own home which costs 95,00,000/- and 18 years of EMIs are pending which my wife is paying pending amount as we divide everything in home. I have 7 years old son who is studying in school I want suggestion that can I retire now or should I start getting along with small business. As if I stay back home it will be very hard for me coz previously I used to work for more than 12 to 14 hours daily. Also do let me know if I need to change anything in my investment.

Ans: Retirement Planning and Business Venture Analysis
Your comprehensive financial portfolio reflects diligent savings and diverse investments. Let's evaluate whether you can retire comfortably or should proceed with your small business venture, considering your financial situation and goals.

Retirement Readiness Assessment
Retirement Corpus:
NPS: ?4,00,000 + ?5,000 monthly
PPF: ?6,00,000 + ?5,000 monthly
SIPs and Mutual Funds: Diversified portfolio with substantial gains
NSC: Consistent investments
Emergency Fund: ?25,00,000 in FDs
Real Estate and Other Investments: Including shares, gold, silver, and ULIPs
Expenses and Liabilities:
Monthly Expenses: Within ?65,000, including investments
Home Loan: Being managed jointly with your wife
Business Venture Consideration
Pros:
Fulfillment of entrepreneurial aspirations
Potential for additional income and growth
Utilization of skills and experience in the food industry
Cons:
Risk of business failure or financial loss
Time and effort required may impact work-life balance
Uncertainty in initial business profitability
Retirement Decision and Investment Review
Retirement:
With your substantial investments and diversified portfolio, early retirement is feasible.
Regular review and rebalancing of investments may be necessary to ensure sustained income growth and stability.
Business Venture:
Proceeding with your small business can offer new opportunities for income and personal fulfillment.
Assess the financial viability and risks involved in the venture carefully before making a decision.
Investment Review:
Consider consolidating or reallocating investments based on your retirement goals and risk tolerance.
Seek professional advice to optimize your portfolio for retirement income generation and business investment.
Conclusion
Your financial prudence and diversified investments provide a strong foundation for retirement. Whether you choose to retire or pursue your small business venture, careful planning and periodic review of your investments are crucial for long-term financial security. Consider your personal aspirations, risk appetite, and financial goals before making a decision.

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 Kalirajan  |7948 Answers  |Ask -

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Hello. I am 41 years old and I am planning to open my own small business of food outlet as I was in same industry in next 1 month after planning of 1.5 years. Currently I have below savings. 4,00,000/- in NPS adding 5,000 each month. 6,00,000/- in PPF adding 5,000 each month. I have below SIP. Franklin India tax shield growth. Investment is 10,70,000/- and gain is 51,21700/- 5000 SIP. HDFC Defense fund regular growth. Investment is 33,000/- and gain is 15,538/- 3000 SIP HDFC Flexi Cap Fund Direct growth. Investment is 5,48,000/- and gain is 11,70,600/- 4000 SIP And also invested in below mutual funds as lumpsum. Aditya Birla sunlife Equity Hybrid fund growth. AXIS small cap fund regular growth HDFC Balanced Advantage Fund direct growth HDFC Midcap opportunities fund regular growth HDFC NIFTY200 momentum index fund growth HDFC small cap fund direct growth HDFC top 100 fund direct growth ICICI Prudential Bluechip Fund Growth Motilal Oswal large and mid cap fund growth Motilal Oswal small cap fund regular growth Nippon India multi cap fund retail plan growth Nippon India small cap fund growth Quant small cap fund regular growth SBI contra fund growth UTI MNC fund growth. Total Investment is 21,50,000/- and gain is 16,70,000/- which was reinvested as tax-harvesting in same mutual funds. Since my age of 25 I have started investing 10,000/- in NSC And after maturing after 5 years add 15,000/- and make it round figure value in and then some same thing in my years of 35 to 40 years. Invested 25,000/- and made round five and invested in NSC. I get maturity of NSC on 1st of every month now. I have 10,00,000 as emergency fund kept in FDs in bank. And I have also invested if Rs. 12,00,000 in shares from which gain is of 6,00,000/ Investmentv in physical gold is 3,50,000/- from which gain is 35,00,000/- Investment in physical silver is 75,000/- from which gain is 3,50,000/- ULIP investment is 1,50,000/- and gain is 2,70,000/- My monthly income is NIL. And my expenses exceeds no more than 50,000/- which includes SIP investment and PPF and NPS investments. I have my own home which costs 95,00,000/- and 18 years of EMIs are pending which my wife is paying pending amount as we divide everything in home. I have 7 years old son who is studying in school I want suggestion that can I retire now or should I start getting along with small business. As if I stay back home it will be very hard for me coz previously I used to work for more than 12 to 14 hours daily. Also do let me know if I need to change anything in my investment.
Ans: Congratulations on your diligent savings and investment journey! Your detailed financial portfolio reflects years of disciplined planning and prudent decision-making. It's impressive how you've diversified across various asset classes, including mutual funds, NSC, real estate, and precious metals.

Regarding your plan to start a small food outlet business, it's essential to assess your financial situation and risk appetite carefully. While your investments provide a strong financial cushion, transitioning to entrepreneurship requires thorough consideration of cash flow requirements, business risks, and potential returns.

Given your history of hard work and dedication, pursuing your entrepreneurial dream seems feasible. However, ensure you have a robust business plan in place, including financial projections and contingency measures. Additionally, consider consulting with a business advisor or mentor to validate your business idea and strategy.

Regarding your investments, your portfolio appears well-diversified, but it's always prudent to periodically review and rebalance based on changing market conditions and personal goals. Consider consulting with a Certified Financial Planner to ensure your investment strategy aligns with your long-term objectives, including retirement planning and your son's education.

Remember, entrepreneurship entails both opportunities and challenges, so proceed with careful planning and realistic expectations. Your determination and financial discipline will likely serve you well in this new endeavor. Wishing you success in your entrepreneurial journey!

..Read more

Ramalingam

Ramalingam Kalirajan  |7948 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 2024

Asked by Anonymous - Jun 17, 2024Hindi
Money
Hello. I am 41 years old and I am planning to open my own small business of food outlet as I was in same industry in next 3 month after planning of 1.5 years. Currently I have below savings. 4,00,000/- in NPS adding 5,000 each month. 6,00,000/- in PPF adding 5,000 each month. I have below SIP. Franklin India tax shield growth. Investment is 10,70,000/- and gain is 51,21700/- 5000 SIP. HDFC Defense fund regular growth. Investment is 33,000/- and gain is 15,538/- 3000 SIP. HDFC Flexi Cap Fund Direct growth. Investment is 5,48,000/- and gain is 11,70,600/- 4000 SIP. And also invested in below mutual funds as lumpsum. Aditya Birla sunlife Equity Hybrid fund growth. AXIS small cap fund regular growth. HDFC Balanced Advantage Fund direct growth HDFC Midcap opportunities fund regular growth HDFC NIFTY200 momentum index fund growth HDFC small cap fund direct growth HDFC top 100 fund direct growth ICICI Prudential Bluechip Fund Growth Motilal Oswal large and mid cap fund growth Motilal Oswal small cap fund regular growth Nippon India multi cap fund retail plan growth Nippon India small cap fund growth Quant small cap fund regular growth SBI contra fund growth UTI MNC fund growth. Total Investment is 21,50,000/- and gain is 16,70,000/- which was reinvested by tax-harvesting in same mutual funds. Since my age of 25 I have started investing 10,000/- in NSC. And after maturing after 5 years add 15,000/- and make it round figure value in and then some same thing in my years of 35 to 40 years. Investing 25,000/- and made round five and invested in NSC. I get maturity of NSC on 1st of every month now. I have 25,00,000 as emergency fund kept in FDs in bank. And I have also invested if Rs. 12,00,000 in shares from which gain is of 6,00,000/- Investment in physical gold is 3,50,000/- from which gain is 35,00,000/- Investment in physical silver is 75,000/- from which gain is 3,50,000/- ULIP investment is 1,50,000/- and gain is 2,70,000/- My monthly income is the income which I receive from FDs and NSC maturation which I reinvest now. My expenses exceeds no more than 65,000/- which includes SIP investment and PPF and NPS investments. I have my own home which costs 98,00,000/- and 18 years of EMIs are pending which my wife is paying pending amount as we divide everything in home. I have 7 years old son who is studying in school. I want suggestion that can I retire now or should I start getting along with small business. As if I stay back home it will be very hard for me coz previously I used to work for more than 12 to 14 hours daily. Also do let me know if I need to change anything in my investment.
Ans: It’s impressive to see your detailed financial planning and investments. Let's dive into a comprehensive analysis to help you decide whether to retire now or pursue your small business venture.

Current Financial Snapshot
Savings and Investments
NPS: Rs 4,00,000, adding Rs 5,000 monthly.
PPF: Rs 6,00,000, adding Rs 5,000 monthly.
Mutual Funds SIPs:
Franklin India Tax Shield Growth: Investment Rs 10,70,000, gain Rs 51,21,700, SIP Rs 5,000.
HDFC Defense Fund Regular Growth: Investment Rs 33,000, gain Rs 15,538, SIP Rs 3,000.
HDFC Flexi Cap Fund Direct Growth: Investment Rs 5,48,000, gain Rs 11,70,600, SIP Rs 4,000.
Lumpsum Mutual Funds: Various funds totaling an investment of Rs 21,50,000 with a gain of Rs 16,70,000.
NSC Investments: Ongoing, maturing monthly.
Emergency Fund: Rs 25,00,000 in FDs.
Shares: Investment Rs 12,00,000, gain Rs 6,00,000.
Physical Gold: Investment Rs 3,50,000, gain Rs 35,00,000.
Physical Silver: Investment Rs 75,000, gain Rs 3,50,000.
ULIP: Investment Rs 1,50,000, gain Rs 2,70,000.
Monthly Income and Expenses
Income: Primarily from FD and NSC maturities.
Expenses: Rs 65,000, including SIPs and contributions to PPF and NPS.
Investment Strategy
Maintain a Balanced Portfolio
Mutual Funds: Continue your SIPs. Focus on actively managed funds for higher returns.
PPF and NPS: These provide stability and tax benefits. Continue with current contributions.
Shares and Physical Assets: Regularly review and rebalance. Maintain diversification to mitigate risks.
Assessing Retirement Feasibility
Monthly Income Needs
Current Expenses: Rs 65,000, including investments.
Desired Monthly Income: You need to ensure this is covered by your investments and income sources.
Emergency Fund Utilization
Emergency Fund: Rs 25,00,000 in FDs. This should cover unforeseen expenses without touching long-term investments.
Small Business Venture
Initial Capital Requirements
Set Aside Funds: Determine the capital needed for your food outlet. Use part of your Rs 2 crores corpus, but ensure it doesn't impact your emergency fund.
Business Plan
Detailed Planning: Develop a detailed business plan, including projected expenses, revenues, and a break-even analysis.
Risk Management
Health and Life Insurance
Health Insurance: Ensure adequate coverage for you and your family.
Life Insurance: Review your policies to ensure your family is financially secure.
Tax Planning
Optimize Tax Savings
Section 80C: Maximize benefits using PPF, ELSS, and NPS.
Capital Gains: Plan your redemptions to minimize tax liabilities.
Recommendations for Current Investments
Mutual Funds
Continue SIPs: Your SIPs in Franklin India, HDFC Defense, and HDFC Flexi Cap are performing well.
Diversify: Ensure a balanced mix of large-cap, mid-cap, and small-cap funds.
Physical Gold and Silver
Hold: Continue holding as they provide a hedge against inflation.
Shares
Review Portfolio: Regularly review your share portfolio. Focus on quality stocks with strong fundamentals.
NSC
Maturity Utilization: Utilize the maturity proceeds for reinvestment or business capital.
Planning for Son's Education
Education Fund: Set up a dedicated fund for your son's education. Use part of your mutual fund gains for this purpose.
Analyzing the Business Decision
Pros and Cons of Retirement
Pros: Freedom to pursue interests, spend time with family, and enjoy a stress-free life.
Cons: Possible boredom and lack of engagement if not actively involved in meaningful activities.
Pros and Cons of Starting a Business
Pros: Keeps you engaged, potential for additional income, and fulfillment from running your own business.
Cons: Business risks, potential stress, and initial capital investment.
Final Insights
Given your solid financial foundation, you have the flexibility to pursue either retirement or your business venture. Your existing investments and savings are well-diversified and provide a robust safety net.

To ensure a smooth transition:

Start the Business: Allocate part of your Rs 2 crores corpus for the initial capital. Keep your emergency fund intact.
Monitor Investments: Continue your SIPs and other investments. Regularly review and rebalance your portfolio.
Plan Withdrawals: Use the income from your investments to cover monthly expenses. Consider SWP for mutual funds after one year.
Your thorough planning and disciplined investments have positioned you well for this next phase.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dear Kanchan .. Generally it happens to me, when I have to attend any hearing before courts/ Tribunal, I become more stressed till the hearing is completed. Please suggest
Ans: It’s entirely normal to feel stressed before court or tribunal hearings. These situations can be intimidating, and the anticipation of the unknown adds to the anxiety. But it’s crucial to manage this stress to ensure you perform at your best and protect your mental well-being.

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On the day of the hearing, use deep breathing techniques to calm your nerves. Inhale slowly through your nose, hold for a few seconds, and exhale through your mouth. Repeat this several times to reduce anxiety. Positive affirmations can also help. Remind yourself that you are well-prepared and capable of handling the situation.

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My wife 55 is unable to cope up with death of our elder son aged 27 around 2 yrs ago and is always in deep regress remorse uninterested in any daily chores including sex. I wish to move on .. Suggest way out...
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Yogendra Arora  |5 Answers  |Ask -

Tax Expert - Answered on Feb 12, 2025

Asked by Anonymous - Feb 11, 2025Hindi
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Hey, I am a freelance graphic designer based in Mumbai. I’m 40 and I've recently transitioned from a full-time job to freelancing, and I’m struggling to understand how to manage taxes on my variable income. My annual earnings are 8-15LPA approx. Are there any deductions specific to freelancers? Also, how should I plan for quarterly tax payments?
Ans: hi,
for this particular financial year you will be taxed under 2 heads ,1st under salaries for the period you were in job & for remaining part you will be taxed as business income being started freelancing work.

And for freelancers there is no any specific dedutions however all deductions available to all others are available to freelancers like 80C to 80G.

For calculation of taxation of freelancing period you should record all your receipts & expenses (only related to work, no any personal expenses) details with proper documentary evidences specially for expenses part, net of the (receipts & expenses) will be your income however you can opt for presumptive taxation also.

For Advance payment :-
if tax applicable to you during the finanical year as per calculations exceeds Rs 10000, then your have to pay advance tax quarterly as below
on or before 15th june :- minimum 15% or more of tax amount.
on or before 15th september :- minimum 45% or more of tax amount.
on or before 15th December :- minimum 75% or more of tax amount.
on or before 15th March :- full 100% tax payable as per calculations.
Happy to help.
Thanks.

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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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