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Ramalingam

Ramalingam Kalirajan  |8084 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 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
Asked by Anonymous - Jun 02, 2024Hindi
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Hello, I need guidance for 2 concerns, since I have resigned and existing from NPS I have to compulsorily purchase annuity for 80% of NPS value, which companies annuity plan is best, Aditya Sunlife, LIC, India first, ...pls guide as the purchase value will be around 12Lacs. 2- I'll be getting around 10Lacs lumpsum, where to and how to invest considering the fact I may not go back to work ever again and I want this funds to grow and create a good wealth for my future, as of now I am 44 years old. Kindly guide

Ans: Annuity plans provide regular income post-retirement. They are crucial for financial stability when you stop working. Since you need to purchase an annuity for 80% of your NPS value, selecting the right plan is essential.

Evaluating Annuity Providers
Aditya Sun Life
Aditya Sun Life is known for its flexible options. They offer different annuity plans, allowing you to choose based on your needs. Their customer service is also commendable.

LIC (Life Insurance Corporation of India)
LIC is a trusted name in insurance. They provide a variety of annuity plans with reliable returns. LIC’s reputation for stability makes it a popular choice.

IndiaFirst Life Insurance
IndiaFirst offers competitive annuity rates and several plan options. Their plans are designed to cater to diverse needs, ensuring you find a suitable one.

Key Factors to Consider
Annuity Rates
Compare the annuity rates offered by different providers. Higher rates will ensure better returns.

Payout Frequency
Choose between monthly, quarterly, or annual payouts based on your requirements.

Plan Features
Evaluate additional features such as joint life annuity, return of purchase price, and inflation-adjusted payouts.

Customer Service
Good customer service is essential for smooth claim processing and query resolution.

Provider Reputation
Select a provider with a solid reputation for reliability and financial stability.

Investing the Lumpsum of Rs 10 Lakhs
Investment Goals and Risk Tolerance
You’re 44 and planning not to return to work. Your investment strategy should focus on growth and wealth creation. Balancing risk and returns is crucial.

Diversified Portfolio
Mutual Funds
Investing in mutual funds can provide good returns. Actively managed funds are preferable over index funds due to the potential for higher returns through expert management.

Debt Funds
Debt funds offer stable returns with lower risk. They are suitable for preserving capital and earning moderate returns.

Gold
Gold is a reliable investment for diversification. It acts as a hedge against inflation and market volatility.

Equity Funds
Equity funds have higher risk but offer substantial returns over time. Diversify across sectors to mitigate risk.

Regular Funds vs. Direct Funds
Benefits of Regular Funds
Investing through a Certified Financial Planner (CFP) offers several advantages. They provide expert guidance, ongoing portfolio management, and personalized advice. This ensures your investments are well-managed and aligned with your goals.

Disadvantages of Direct Funds
Direct funds may seem cost-effective due to lower expense ratios. However, without professional guidance, you may make suboptimal investment decisions, potentially affecting your returns.

Investment Strategy
Systematic Investment Plan (SIP)
Consider setting up SIPs for consistent investment in mutual funds. This mitigates market volatility and promotes disciplined investing.

Asset Allocation
Maintain a balanced mix of equity, debt, and gold. This diversification reduces risk and enhances potential returns.

Rebalancing
Regularly review and rebalance your portfolio to align with your risk tolerance and financial goals.

Risk Management
Emergency Fund
Set aside a portion of your lump sum as an emergency fund. This ensures liquidity for unforeseen expenses.

Insurance
Ensure you have adequate health and life insurance coverage. This protects you and your family from financial hardships in case of emergencies.

Long-term Perspective
Wealth Creation
Investing with a long-term perspective is key to wealth creation. Patience and consistent investing yield significant returns over time.

Avoiding Market Timing
Trying to time the market can be risky. Instead, focus on staying invested through market cycles for better outcomes.

Final Insights
Investing your NPS proceeds and lump sum wisely can secure your financial future. Evaluate annuity providers based on rates, features, and reputation. For your lump sum, diversify across mutual funds, debt funds, and gold. Engage a Certified Financial Planner for professional guidance, ensuring your investments are aligned with your goals. Maintain a balanced portfolio and focus on long-term wealth creation.

By taking these steps, you can build a robust financial plan that supports your aspirations and ensures a secure future.

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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Milind

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Insurance, Stocks, MF, PF Expert - Answered on Feb 10, 2025

Asked by Anonymous - Feb 10, 2025Hindi
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I am 51 single, divorced and have one little sister who is 32. Recently I lost my job, and I am not in the mood to search for a new one. I am in the process of making arrangement to fulfill my monthly needs. I am holding the NPS which has a small corpus of 5 lacs in tier 1 and 45k in tier 2. Now I want to completely exit from the NPS. Now I must compulsorily accept the 20% withdrawal and 80% annuity. I have a few queries below. 1. Should I consider buying 100% annuity. 20% withdrawal does not make sense 2. Should I consider putting 1.5 lacs more to enhance the annuity (The corpus will become 7 lacs approx.). 3. Should I consider taking out the annuity on a yearly basis (Please explain Its pros and cons), since it offers more benefit. 4. Should I consider the Shriram life insurance. 5. Will it be safe to consider Shriram life insurance for life long future annuity. It offers the highest annuity. 6. Should I consider Annuity for Life with ROP - Subscriber will get annuity for lifetime and on death of the Subscriber, payment of annuity ceases & 100% of the purchase price will be returned to the nominee(s). The annual offer is 49,063.00 (7.01%) 7. Should I consider Annuity for Life without ROP - Subscriber will get annuity for lifetime and on death of the Subscriber, payment of annuity ceases, and no further amount will be payable. The annual offer is 58,112.00 (8.30%)
Ans: Hello;

Point wise answers to your queries as given below:

1. Yes.
2. Yes.
3. If you do monthly annuity the rate will be lower but you get monthly payouts. In yearly the rate will higher but only one shot payment per year so it depends on your preference.

4. Cannot comment on suitability of xyz firm.

5. Consider an insurer which has good capital adequacy, growing profitable business, preferably listed, reputation of the owner/group apart from decent annuity rates on offer.

6 & 7. My suggestion would be to opt for annuity for life with ROP to your nominee. Ultimately it is your call.

Please have adequate healthcare insurance cover.

Best wishes;

..Read more

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Nayagam P

Nayagam P P  |4283 Answers  |Ask -

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I am getting 93.55 percentile in jee mains session 1 2025. Is there any chance I can get mechanical or electrical branch in dtu or nsut. I am from general category with Delhi state domicile. Someone pls tell
Ans: Aryan, Apart from JoSAA Counselling Process, you can also participate in JAC-Delhi Counselling Process which I hope you might be aware of.

Now, coming to your Question.

How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

After the result of January JEE-Session is declared, RediffGURU has been getting standard questions from Students & JEE Applicants regarding the eligibility for particular Institute (NIT or IIIT or GFTI etc.) based on their Percentile scored, their Category, their preferred Branch & their Home State.

Providing information for each JEE Applicant based on these factors can be challenging. Some of the reputed Education based websites provide 'College Predictor' facility. Though you can check the same with your percentile based on your category etc., I would suggest all of you the following steps to know the chances of getting the Institute / Branch, based on last year's data. Please note, you will get a fair idea based on the last year's data (not an accurate idea). Now, here are the simple and most effective steps:

STEP 1: Note down your percentile, category, institute types preferred (NIT, IIIT or GFTI), preferred locations or you are ready for any location in India, Academic programs you prefer (list out minimum 3 programs you prefer as back-ups, instead of relying only one program) & the most important factor is your Category (General-Open or SC or SC (PwD) or OBC-NCL (PwD) or EWS (PwD) or Open (PwD) or ST or EWS or OBC-NCL?)

STEP 2: Convert your Percentile into Rank, the formula for which is available in Google.

STEP 3: Just type in Google, 'JoSAA Opening & Closing Ranks 2024'. Click the 1st Result. You will land directly into the JoSAA's Website that too into the window where you can put the inputs based on what you have noted down in STEP 1 Above.

STEP 4: 1st it asks for Round Number as around 5 rounds are held in JoSAA's Counselling Process. I suggest you, choose the 4th Round option on safer side.

STEP 5: Choose the Institute Type (NIT or IIIT or GFTI). If you are ready for all, better to go one-by-one.

STEP 6: As far as the Institute Name also (based on location), I suggest you to go one-by-one (institute) based on your preference (Avoid Choosing ALL to avoid confusion).

Choosing one-by-one will take time, but recommended.

STEP 7: Fill in the Academic Program (based on in your order of preference one by one).

STEP 8: After choosing the right options, applicable to you, click SUBMIT button.

You will get a detailed list of opening and closing ranks, based on your options chosen

STEP 9: Now start noting down the Opening & Closing of Each Institute & Each Branch you preferred in your Dairy or note-book for quick reference when you participate in JoSAA Counselling.

STEP 10: MOST IMPORTANT: Write 2 different columns for Opening & Closing Ranks in your dairy for each Institute. On SAFER SIDE, consider the Opening & Closing Ranks litter lesser than that of 2024 as the same fluctuates every year but not significantly.

Let me explain with an example. You have filled in as follows. Round 4 | NIT | NIT-Delhi | Mechanical Engineering | OPEN Category, the output of which shows Opening & Closing Ranks as '8622 & 26186' for HOME STATE Open Category. You should consider as / change to '8300 & 23000' (on a safer side). Let us take into consideration the Female Category for the same. Opening & Closing Rank shows '34334 & 36212'. You change it to '31000 & 33000' (on a safer side). Based on this example, you can change accordingly for OTHER STATES & your Category.

As already mentioned, Opening & Closing Ranks vary every year but not significantly, as such, suggested to change the same to lesser number and note down in your diary or in a separate note-book for quick reference while participating in JoSAA's Counselling Process.

You can follow the same steps for your JEE-April session & JEE-Advanced too.

Hope, you have thoroughly understood the above explained in a very simple and very easy-to-understand language.

If time permits to know about the JoSAA's Counselling Process, please watch one of the 180 Videos of EduJob360 on 'JoSAA Counselling Process', Engineering Entrance Exams & Preparation Strategies for the same.

All the Best for Your Son's Prosperous Future.

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4283 Answers  |Ask -

Career Counsellor - Answered on Mar 07, 2025

Asked by Anonymous - Mar 06, 2025Hindi
Listen
Career
My son got 88.53 percentile in JEE mains 2025 Jan session EWS category, can he get admission in NIT for Chemical or Electrical?
Ans: How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

After the result of January JEE-Session is declared, RediffGURU has been getting standard questions from Students & JEE Applicants regarding the eligibility for particular Institute (NIT or IIIT or GFTI etc.) based on their Percentile scored, their Category, their preferred Branch & their Home State.

Providing information for each JEE Applicant based on these factors can be challenging. Some of the reputed Education based websites provide 'College Predictor' facility. Though you can check the same with your percentile based on your category etc., I would suggest all of you the following steps to know the chances of getting the Institute / Branch, based on last year's data. Please note, you will get a fair idea based on the last year's data (not an accurate idea). Now, here are the simple and most effective steps:

STEP 1: Note down your percentile, category, institute types preferred (NIT, IIIT or GFTI), preferred locations or you are ready for any location in India, Academic programs you prefer (list out minimum 3 programs you prefer as back-ups, instead of relying only one program) & the most important factor is your Category (General-Open or SC or SC (PwD) or OBC-NCL (PwD) or EWS (PwD) or Open (PwD) or ST or EWS or OBC-NCL?)

STEP 2: Convert your Percentile into Rank, the formula for which is available in Google.

STEP 3: Just type in Google, 'JoSAA Opening & Closing Ranks 2024'. Click the 1st Result. You will land directly into the JoSAA's Website that too into the window where you can put the inputs based on what you have noted down in STEP 1 Above.

STEP 4: 1st it asks for Round Number as around 5 rounds are held in JoSAA's Counselling Process. I suggest you, choose the 4th Round option on safer side.

STEP 5: Choose the Institute Type (NIT or IIIT or GFTI). If you are ready for all, better to go one-by-one.

STEP 6: As far as the Institute Name also (based on location), I suggest you to go one-by-one (institute) based on your preference (Avoid Choosing ALL to avoid confusion).

Choosing one-by-one will take time, but recommended.

STEP 7: Fill in the Academic Program (based on in your order of preference one by one).

STEP 8: After choosing the right options, applicable to you, click SUBMIT button.

You will get a detailed list of opening and closing ranks, based on your options chosen

STEP 9: Now start noting down the Opening & Closing of Each Institute & Each Branch you preferred in your Dairy or note-book for quick reference when you participate in JoSAA Counselling.

STEP 10: MOST IMPORTANT: Write 2 different columns for Opening & Closing Ranks in your dairy for each Institute. On SAFER SIDE, consider the Opening & Closing Ranks litter lesser than that of 2024 as the same fluctuates every year but not significantly.

Let me explain with an example. You have filled in as follows. Round 4 | NIT | NIT-Delhi | Mechanical Engineering | OPEN Category, the output of which shows Opening & Closing Ranks as '8622 & 26186' for HOME STATE Open Category. You should consider as / change to '8300 & 23000' (on a safer side). Let us take into consideration the Female Category for the same. Opening & Closing Rank shows '34334 & 36212'. You change it to '31000 & 33000' (on a safer side). Based on this example, you can change accordingly for OTHER STATES & your Category.

As already mentioned, Opening & Closing Ranks vary every year but not significantly, as such, suggested to change the same to lesser number and note down in your diary or in a separate note-book for quick reference while participating in JoSAA's Counselling Process.

You can follow the same steps for your JEE-April session & JEE-Advanced too.

Hope, you have thoroughly understood the above explained in a very simple and very easy-to-understand language.

If time permits to know about the JoSAA's Counselling Process, please watch one of the 180 Videos of EduJob360 on 'JoSAA Counselling Process', Engineering Entrance Exams & Preparation Strategies for the same.

All the Best for Your Son's Prosperous Future.

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...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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