How can a 12th pass student with zero income plan finances for a future startup?

Ans: Sreeni Sir, With an OBC-NCL rank of 4303 in IAT-2025, your son will not be able to secure a seat in any IISER. The closing OBC-NCL ranks for the least preferred IISERs, such as Berhampur and Tirupati, are expected to be around 1600–1800 this year, and last year’s data shows the highest OBC-NCL closing ranks for any IISER did not exceed 4484, with most popular campuses closing well below 2000. The total number of OBC-NCL seats is limited due to the 27% reservation and high competition, and even with category reservation, the cutoff ranks remain significantly lower than your son's rank. All reliable sources and cutoff trends confirm that an OBC-NCL rank of 4303 is outside the admission range for the BS-MS and BS programs at all IISERs in 2025. The recommendation is to consider alternative science institutes or state-level universities, as IISER admission is not feasible at this rank. All the BEST for the Admission & a Prosperous Future!

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Ans: Hello Kashvi
Prefer CGC if possible. The final decision will be yours.
Good luck!
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Radheshyam

Ans: Hello dear.
Both are strong options. You can prefer any one which is suitable to you from a travelling point of view. Yet to suggest, prefer CSE @ MIT Manipal.
Good luck!
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Radheshyam

Ans: At 61, with a pension-backed lifestyle and a strong mutual fund portfolio, you and your wife are in a better financial condition than many retirees. You have been investing smartly and consistently. This shows your discipline and patience. Let us now take a detailed look at your situation and provide a 360-degree strategy to help you make informed decisions on whether to continue with SIPs or shift to fixed deposits.

Overview of Your Current Financial Position

Let us first look at your numbers clearly:

You are 61 and retired. You get Rs. 44,000 as monthly pension.

You invest this pension into SIPs in mutual funds.

You have Rs. 34 lakh in fixed deposits. You get Rs. 25,000 monthly from it.

You contribute Rs. 25,000 to the monthly household cost of Rs. 50,000.

Your wife is also retired and receives about the same pension.

She has Rs. 52 lakh in fixed deposit and Rs. 30 lakh invested in mutual funds.

You have invested Rs. 30 lakh in mutual funds which have grown to Rs. 52 lakh.

Your wife is investing Rs. 25 lakh through SIPs now.

You own your flat and have one married son living in another city.

This is a financially balanced situation. Now let us assess each part to offer deeper insights.

1. Monthly Cash Flow – Sustainable and Comfortable

Together, you and your wife receive around Rs. 88,000 per month as pension.

You also get Rs. 25,000 monthly as FD interest.

This makes your total monthly income around Rs. 1.13 lakh.

Your household expense is only Rs. 50,000. That leaves a surplus of over Rs. 60,000.

You are not dependent on your mutual fund corpus for monthly expenses. This is a very strong position for any retiree.

2. Fixed Deposit Income – Reliable but Low Growth

Your total FD value (you + wife) is Rs. 86 lakh.

You both get monthly income from it.

This is good for safety and liquidity.

But FD interest is fully taxable and may fall in future.

FD returns rarely beat inflation over long term.

You can keep some FD for stability, but not everything.

FD should be used only for emergency buffer and short-term goals.

3. Mutual Fund Corpus – Impressive Growth and Wealth Creator

Your mutual fund investment of Rs. 30 lakh has grown to Rs. 52 lakh.

That is a strong capital appreciation.

Your wife has Rs. 30 lakh in mutual funds.

Together, your mutual fund corpus is Rs. 82 lakh.

This shows you have trusted mutual funds and stayed invested.

This decision has paid off well, and you should continue.

4. Ongoing SIPs – Excellent Habit, Keep It Going

You invest your entire pension in SIPs.

Your wife is investing Rs. 25 lakh through SIPs.

These SIPs are creating long-term wealth.

Mutual fund SIPs are flexible, tax efficient and help in rupee cost averaging.

You should continue the SIPs without stopping them.

These SIPs will give you more financial freedom later.

5. Should You Shift to FD from SIP? No, Here’s Why

SIPs are giving higher returns than FDs over 5–10 years.

FD returns are taxable fully and get lower in real value due to inflation.

SIPs in equity mutual funds are taxed efficiently.

LTCG above Rs. 1.25 lakh is taxed at only 12.5%.

STCG is taxed at 20%.

SIPs offer better inflation protection and long-term growth.

Since your risk appetite is good, and you do not depend on MF money for expenses, you can take market ups and downs calmly.

Stopping SIPs now will reduce future wealth.

Stay invested. Do not stop or pause the SIPs.

6. Use Mutual Funds for Future Monthly Income

After 65 or 70, you can start Systematic Withdrawal Plans (SWP).

This will create monthly income from mutual fund corpus.

SIP grows wealth. SWP gives regular income later.

This will help reduce FD dependence later.

Use SWP only after your capital grows more.

For now, keep investing. Later, enjoy the income.

7. Asset Allocation – Review Regularly, Not Reactively

You have almost Rs. 1.68 crore between you both.

About 48% is in mutual funds. Around 52% is in fixed deposits.

This is a balanced allocation for your stage.

But over the next few years, gradually increase mutual fund share to 60%.

Keep 30% in fixed deposit.

Remaining 10% can be in liquid or ultra-short funds for short-term needs.

Do not over-allocate to FDs even in retirement.

8. Emergency Fund – Always Keep a Separate Pool

Keep Rs. 4–6 lakh each in a separate emergency fund.

Use liquid funds or short-term FDs for this.

Do not disturb long-term mutual funds for sudden needs.

This keeps your investments stable.

Safety pool is essential for peace of mind.

9. No Need for Real Estate or Gold

You already own a flat.

You do not need to invest more in real estate.

Real estate is illiquid, costly, and hard to manage.

Also, do not over-invest in gold.

Keep only small amount for personal use.

Keep your capital in growth and income-generating assets.

10. Avoid Index Funds and Direct Funds

Do not invest in index funds now.

Index funds invest in all stocks, good and bad.

They give no active selection or risk management.

In falling markets, they fall as much as the index.

Actively managed funds are better in volatile times.

Fund managers help select good stocks, avoid poor ones.

Also avoid direct mutual funds:

Direct funds have no advisor support.

No one guides you on when to redeem or switch.

Emotionally hard to manage during market corrections.

Regular plans through a Mutual Fund Distributor with CFP give full support.

Keep investing through regular plans only.

11. Estate Planning – Act Now, Not Later

You have significant wealth. Now is the right time for estate planning.

Write a Will each.

Include details of mutual fund holdings, FDs, and your flat.

Mention who gets what.

Register the Will to avoid legal trouble later.

Also, ensure nominee names are added in all financial assets.

Nominee is not the legal heir. Only Will decides distribution.

Plan this early. It will protect your family from confusion later.

12. Tax Planning – Keep Things Clean and Simple

Keep a track of all capital gains in mutual funds.

Do not redeem unless needed, or for rebalancing.

Redeem wisely to avoid higher tax.

Use joint names in FDs and mutual funds for convenience.

Keep all investments linked to PAN and updated KYC.

Keep your documentation clear and updated.

13. Retirement Security – You Are Already There

Your expenses are less than income.

Your investments are growing well.

You do not need to depend on your son financially.

You have enough funds for future.

But keep tracking expenses. Inflation can rise slowly over years.

14. Health Insurance – Important to Recheck

Please make sure you and your wife have a good health insurance cover.

Minimum cover should be Rs. 10–15 lakh.

Use a super top-up plan if needed.

Keep health policy active till the end of life.

Medical costs can rise suddenly.

15. Role of Certified Financial Planner – Don’t Skip It

You both are managing well.

But engaging a Certified Financial Planner can help optimise further.

A CFP helps with:

Goal mapping

Asset rebalancing

Tax-efficient withdrawals

Portfolio review

Succession planning

CFP offers guidance that is personal, not generic.

They help avoid emotional or wrong decisions in future.

Finally

You are in a very strong financial position today. Your lifestyle is secure. Your investments are growing. Your habits are disciplined. This is a clear example of smart retirement planning.

There is no need to move to FD from SIP. You can continue SIPs as long as you are financially comfortable and mentally relaxed. SIPs are building your financial legacy and keeping you ahead of inflation.

What you need now is:

Continue SIPs in regular mutual funds.

Slowly shift from growth to income-oriented strategies (like SWP) after a few years.

Rebalance asset allocation every 1–2 years.

Keep insurance updated.

Complete estate planning soon.

Your journey so far has been consistent and thoughtful. Keep going.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Hello Sathyamurthy
Chances are slim. Explore other options.
Good luck!
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Radheshyam

Ans: Hello dear. Chances for CSE with KCET seem challenging. Prefer the college through management quota, which offers CSE at minimal expenses. If possible, opt for CSE with specialization.
Good luck!
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Radheshyam

Ans: You are already taking proactive steps. This itself is a great beginning.

Let us now assess your investments from a 360-degree perspective. We will ensure that each of your goals is matched with the right strategy.

Monthly Income and Expense Overview
Your monthly take-home is Rs. 84,200.

You are saving about Rs. 30,500 monthly.

That means you are saving around 36% of your income.

This is good. Most people don’t save even 20%.

Keep up this savings habit.

Short Review of Current Investments
1. Sukanya Samriddhi Account (SSA)

You invest Rs. 2,500 monthly.

This is a smart choice for your daughter’s future.

It is government-backed and tax-free on maturity.

Don’t stop it. Try to increase it slowly as income grows.

Lock-in is till she turns 21. But this builds discipline.

2. Mutual Funds – Rs. 8,000 SIP
Your mutual fund choices are as below:

Rs. 3,000 – UTI Nifty 50

Rs. 2,000 – Parag Parikh Flexi Cap

Rs. 1,000 – Nippon Large Cap

Rs. 1,000 – Quant Small Cap

Rs. 1,000 – Motilal Midcap

Let us now evaluate them properly.

Index Fund: UTI Nifty 50 – Rs. 3,000
You are investing in an index fund. Here are some important points.

Disadvantages of Index Funds:

They follow the index blindly.

They don’t react to market risks.

No downside protection during market crashes.

They may carry high concentration in a few stocks.

Same stocks are repeated again and again.

Better Alternative:

Use an actively managed large cap fund.

The fund manager actively selects quality stocks.

They exit weak stocks early.

They take advantage of sector rotation.

You may shift from UTI Nifty 50 to a large cap regular fund. Choose one recommended by a Certified Financial Planner.

Parag Parikh Flexi Cap – Rs. 2,000
It is a good fund choice.

Flexi cap funds invest across all sizes.

They balance risk and return well.

You can continue this.

But one issue: if it is a direct plan, please note the following:

Disadvantages of Direct Mutual Funds:

No expert guidance from an MFD or CFP.

Mistakes go unnoticed.

Emotional decisions during market dips.

No portfolio review or rebalancing support.

You may choose wrong funds based on past return.

Online platforms only push products, not advice.

Benefit of Regular Plan through Certified MFD/CFP:

You get personalised advice.

Helps with goal tracking.

Helps during market corrections.

Keeps your asset allocation balanced.

Please check if your investments are direct. If yes, shift to regular plans through a Certified Financial Planner for better direction.

Nippon Large Cap – Rs. 1,000
This is okay. But overlap with other large caps possible.

Evaluate whether this is needed when already investing in Flexi Cap and Nifty.

With limited SIP budget, don’t diversify too much.

Keep only one large cap. Not more than one.

Quant Small Cap – Rs. 1,000
Small caps are risky.

Volatility is very high.

Avoid if goal is fixed like child’s education.

It is better suited for wealth creation over 12–15 years.

You may keep it for now. But increase only slowly. Don’t raise SIP here unless guided by a CFP.

Motilal Midcap – Rs. 1,000
Midcap funds offer better return potential.

But risk is higher than large cap.

Good to have 1 midcap in the mix.

You may continue this. But review performance every year.

Recurring Deposit (RD) – Rs. 10,000
Good for short-term needs.

Helps with discipline.

Returns are low after tax.

Do not use RD for long-term goals like education or marriage.

Once you have 6 months emergency fund, move some RD to mutual funds for higher growth.

LIC Endowment Policy (814) – Rs. 10,000
This needs careful review.

This policy is NOT suitable for child goals.

Here’s why:

Return is only 4% to 5%.

Long lock-in.

No flexibility.

Low insurance cover.

No inflation protection.

You are mixing insurance and investment. That’s not a good idea.

Ideal step:

Surrender this policy.

Reinvest amount in mutual funds through a Certified Financial Planner.

Also, take a pure term insurance separately.

This one step can free up Rs. 10,000 monthly for better use.

Child Education and Marriage Goal Planning
You have a 2-year-old daughter.
That means you have 14 years for graduation and 20–22 years for marriage.
These are long-term goals.

What you need for these goals:

High-growth investments.

Diversified portfolio.

Regular monitoring.

Inflation-beating returns.

Currently, your investments are fragmented.
There is no clear alignment between each goal and the right investment.

Let’s fix that.

What You Can Do from Now
1. Create Goal Buckets

Education (graduation): Target year – 2039

Higher Education/Marriage: Target year – 2045

2. Align SIPs to Each Goal

Start SIPs in goal-based portfolios.

Assign mutual funds to each goal.

Track growth every year.

3. Shift LIC Endowment to Mutual Funds

Surrender LIC 814.

Add this Rs. 10,000 to your SIPs.

It will create powerful compounding.

4. Reduce Fund Overlap

Don’t hold more than 3–4 mutual funds.

Choose only one per category – large cap, flexi cap, midcap.

Avoid holding similar funds that confuse your tracking.

5. Increase SSA When Possible

Try to raise your SSA contribution to Rs. 4,000–5,000 slowly.

This gives secure tax-free return.

6. Build Emergency Fund

Right now, RD is used partly as emergency fund.

Aim for Rs. 3–4 lakh in savings + FD.

Keep this separate. Don’t touch it for investing.

7. Get Term Insurance

You have a dependent spouse and daughter.

Your current insurance is LIC 814 – this is not enough.

Buy a term insurance of Rs. 50–75 lakh.

Premium will be low at your age.

This protects your family in case of any risk.

Final Insights
You are doing well by saving regularly.
But right now, some money is going to low-return products.

You can improve returns by:

Replacing LIC with mutual fund SIPs

Using guidance of a Certified Financial Planner

Keeping your mutual fund portfolio goal-linked

Avoiding index funds and direct plans

Reviewing funds every year

Increasing SIPs with every salary hike

This 360-degree realignment will give you a stronger financial base for your daughter’s future.
Her education and marriage needs will be better supported this way.

Keep your savings habit strong.
But use smarter instruments to match your goals.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You are in a stage of life where careful planning is very important. At 51, with a non-earning status, and with two dependents, your focus should be on securing income, protecting capital, and planning smartly for your family’s long-term needs.

You already have some positive things in place. Let’s evaluate your position step-by-step and guide you in building a 360-degree financial roadmap.

Your Current Financial Position – An Overview

You are 51 years old and not working currently.

You have a wife, a daughter (18), and a son (8) who are financially dependent.

You have Rs. 10 lakh health insurance for your family. That’s a good beginning.

You have Rs. 30 lakh life insurance. Needs further review.

You stay in a 3BHK house and own a 2BHK property which earns Rs. 30,000 monthly rent.

You have Rs. 60 lakh in fixed deposits.

You are new to mutual funds and stock investments.

This clarity helps to assess your financial strength and gaps.

Assessing Risk and Needs at This Stage

At this stage, you have some income (from rent), stable assets, and capital. But you do not have a regular working income. Your dependents are young, and future expenses (especially education) are high. Let’s look at your current risks:

Lack of steady income from work

Long-term education needs of your children

Inflation eating into fixed deposits

No investment in mutual funds or other growth options

Life insurance may be insufficient

Let us now see how to plan each part thoughtfully.

1. Emergency Fund – Your Immediate Support System

Always maintain an emergency fund.

For your situation, keep at least Rs. 6–8 lakh in savings account or liquid mutual funds.

This is for medical, repair, or urgent family expenses.

Use a sweep-in FD or short-term debt fund.

Do not mix this with long-term investments.

This fund gives safety when income is not regular.

2. Health Insurance – Good Start, Slight Improvements Needed

You already have Rs. 10 lakh family floater. That’s a good base.

But include a super top-up plan of Rs. 15–20 lakh.

This will add extra protection at low premium.

Ensure it covers your wife and both children till at least age 60.

Focus on plans with lifetime renewability.

Hospitalisation costs are rising fast. This cover helps preserve your savings.

3. Life Insurance – Protection Gap Must Be Covered

Rs. 30 lakh life cover is low for your situation.

Aim for at least Rs. 1 crore pure term insurance.

No investment-linked policies. Only term insurance.

This should cover:

Education of both children

Living expenses of wife

Any future liabilities

Term plan premiums are affordable if taken early.

Keep your insurance and investment separate always.

4. Fixed Deposits – Low Growth, Taxable Returns

You have Rs. 60 lakh in FDs. That’s helpful now.

But FD returns are low and taxable fully.

This will not beat inflation in the long run.

Break your FD into three buckets:

Short-term needs (1–2 years) – Keep in FD

Medium-term needs (3–5 years) – Shift to debt mutual funds

Long-term growth (7+ years) – Invest in equity mutual funds

Only idle capital should stay in FD. Rest should be working for you.

5. Rental Income – Protect and Optimise

You earn Rs. 30,000 monthly from 2BHK rent.

That is Rs. 3.6 lakh annually.

It is a good source, but keep it insured and maintained well.

Set aside part of this income for maintenance or emergency repairs.

Treat this rent as part of your monthly income stream.

6. Mutual Fund Investing – Start Simple, Go Systematic

You are new to mutual funds. That is perfectly fine. Start small, but stay regular.

Begin with regular plans through a CFP-guided Mutual Fund Distributor (MFD).

They guide you with personalised planning, tax management, and emotional discipline.

Avoid direct plans. They give no guidance and no human support.

Direct plans are for experts who monitor daily. They lack behavioural coaching.

Regular plans may have commission, but they give you full service.

Your lack of time and knowledge can hurt in direct plans.

Now for fund type selection:

For long-term (7+ years): Use actively managed equity mutual funds.

Avoid index funds. They invest in all stocks, even poor ones.

Index funds do not manage risk. No active decision-making is there.

Actively managed funds are guided by experts. They select only good quality stocks.

Good fund managers help you beat market average returns.

For medium-term (3–5 years): Use balanced or hybrid mutual funds.

For short-term (1–2 years): Use short-term debt mutual funds.

Always invest based on time horizon and goal.

7. Monthly Systematic Investment Plan (SIP) – Build a Habit

From your FD and rental income, start monthly SIPs.

Begin with Rs. 20,000 per month.

Increase gradually as you get comfortable.

SIP creates financial discipline and long-term wealth.

Small steps done regularly give big results.

8. Retirement Planning – Your Own Future Must Be Secure

You are 51. You may live another 30–35 years.

Don’t ignore your own retirement.

Start allocating a portion of FD into retirement-focused funds.

These funds help in growing capital and giving monthly income later.

Plan to create Rs. 3–4 crore retirement corpus in 10–12 years.

Use mutual fund SWP (Systematic Withdrawal Plan) after 60.

This gives regular monthly income from mutual fund investments.

Never depend only on children. Your financial independence matters.

9. Education Planning for Children – Must Be Prioritised

Daughter is 18. Higher education is very near.

Son is 8. You have time for his goals.

Shift a part of your FD (say Rs. 20 lakh) into goal-based mutual funds.

For daughter’s education, use balanced mutual funds. Use STP to withdraw in 3 years.

For son’s education, use equity mutual funds. You have 10 years.

Allocate goal-wise. Do not mix funds.

Education is expensive. Smart early planning is needed.

10. Will Writing and Estate Planning – Protecting Your Family

You have two properties and fixed assets.

Prepare a registered Will. It prevents legal confusion later.

Mention how you wish to divide property and assets.

Also, mention nominee details in all mutual funds and bank accounts.

Nominee is not owner. Will decides final ownership.

A Will brings peace and clarity for your family.

11. Tax Planning – Keep It Simple and Smart

FD interest is taxed as per your slab. It can reduce actual return.

Equity mutual funds:

LTCG above Rs. 1.25 lakh taxed at 12.5%

STCG taxed at 20%

Debt mutual funds: Taxed as per your slab.

Use tax-efficient funds. Keep records of investments and redemptions.

12. Do Not Mix Insurance with Investment

If you hold LIC policies or ULIPs or investment-cum-insurance policies:

Review the surrender value.

Most of them give poor return.

Exit these slowly and reinvest in mutual funds.

Keep insurance separate, as pure term cover only.

Insurance is for protection. Investment is for wealth.

13. Avoid These Common Mistakes

Avoid investing big amount at once in equity. Use STP to spread risk.

Do not chase past performance of mutual funds.

Don’t rely on tips, TV advice, or friends for investing.

Stay away from real estate investment now. It locks capital and is illiquid.

Avoid annuity products. They give low return and no flexibility.

Simple, long-term, disciplined mutual fund investing works best.

14. Engage a Certified Financial Planner

A CFP professional gives you goal-based, holistic planning.

They help in:

Asset allocation

Tax planning

Portfolio review

Risk analysis

Behavioural coaching

They bring experience, logic, and emotional balance.

Their guidance helps you avoid big mistakes.

Finally – Your Action Plan Starts Now

You have a good base with assets and no major liabilities. But planning is delayed. Act now.

Protect what you have (Health + Life + Emergency Fund)

Shift from FD to goal-based investing slowly

Begin mutual fund SIPs through regular plans

Plan for retirement and children’s education

Write your Will and ensure nominations

Track your expenses and invest monthly

You don’t need to be an expert. But you must be disciplined.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Kalpana Madam, With a rank of 22,000 in the IISER IAT 2025, admission to any IISER is not possible, regardless of category. The closing ranks for general category candidates at even the least competitive IISERs, such as Berhampur or Tirupati, have consistently remained below 4,500 in recent years, and for 2025, the expected cutoffs for all categories are much lower than your son’s rank. For general category, the cutoff typically falls within 120–130 marks (well within the top 2,500 ranks), and even for reserved categories, closing ranks rarely exceed 4,500. The total seat intake across all IISERs is approximately 2,363, making competition extremely high and pushing cutoff ranks much lower than 22,000. The marks vs. rank analysis and available seat matrix confirm that a rank of 22,000 is far outside the range for any seat allocation in BS-MS, BS, or BTech programs at any IISER campus. The recommendation is to explore alternative science or engineering programs at other national or state-level institutes, as IISER admission is not feasible at this rank. All the BEST for the Admission & a Prosperous Future!

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