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Sunil

Sunil Lala  |201 Answers  |Ask -

Financial Planner - Answered on Apr 10, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
SONALI Question by SONALI on Jan 05, 2024Hindi
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Hello Rediff guru Sunil, I need your advice, I need to withdraw urgent cash of a high amount, while I have both FD and Mutual fund investments with good profit accumulated, please advise shall I break the FD or withdraw from my mutual fund profits?

Ans: Break FD
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6528 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 08, 2024

Asked by Anonymous - Apr 12, 2024Hindi
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Sir , I am working man ( Age- 52 ) , I invested in MF , LIC , NPS , ULIP , FD , TermPlan etc .. all total the market value cost of invested fund is almost Rs. 50 lakhs.. Now my query is that do I withdraw all the money ( i.e. 50 lakhs) and invested in FD for 10 years to get monthly income ? pls guide me .. I am confused ...
Ans: It's understandable to feel confused when considering significant financial decisions like withdrawing and investing a substantial amount of money. Let's weigh the pros and cons of withdrawing your investments and putting the funds into fixed deposits (FDs) for generating monthly income:
Pros of Investing in FDs:
1. Stable Income: FDs provide a fixed interest rate, ensuring a predictable monthly income stream, which can be beneficial for meeting regular expenses.
2. Capital Preservation: Your principal amount invested in FDs is generally considered safe and protected, offering stability and security.
3. Ease of Management: FDs are relatively straightforward investment instruments, requiring minimal monitoring and management.
Cons of Investing in FDs:
1. Limited Returns: FDs typically offer lower returns compared to equity-linked investments like mutual funds, which may not be sufficient to keep pace with inflation over the long term.
2. Lack of Flexibility: Once you invest in FDs for a specific term, withdrawing funds before maturity may attract penalties or lower interest rates, limiting liquidity.
3. Inflation Risk: FD returns may not always keep up with the rising cost of living, potentially eroding the purchasing power of your income over time.
Considerations:
1. Risk Tolerance: Assess your risk tolerance and financial goals to determine if the conservative approach of FDs aligns with your needs. At age 52, preserving capital and generating steady income may be a priority.
2. Diversification: Review your overall investment portfolio and ensure it is well-diversified across asset classes to manage risk effectively. Consider maintaining exposure to growth-oriented investments like mutual funds for long-term wealth creation.
3. Financial Planning: Consult with a Certified Financial Planner to create a comprehensive financial plan tailored to your goals, risk profile, and income needs. They can provide personalized guidance and help you make informed decisions.
In conclusion, while FDs offer stability and regular income, they may not be the most efficient option for long-term wealth accumulation. It's essential to balance safety, liquidity, and returns based on your financial situation and objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6528 Answers  |Ask -

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

Asked by Anonymous - Jun 29, 2024Hindi
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Sir, I am holding nearly 25 lakhs for an investment of 10lakhs in different mutual funds. I want to exit from some of the funds like UTI NIFTY 500 VALUE 50 INDEX FUND Regular The return on this fund is nearly hundred percent. Iam 78 years old. Wherever I have more than fifty percent return I would like to invest MIP OF POST OFFICE OR KISAAN VIKASH PATRAor SENIOR CITIZENS SCHEME.Only the profit part. Principal l will continue. Should I wait till the budget of act.Should linvst that amount in top 50 NSE.stocs. kindly treat the matter as urgent.
Ans: It's wise to exit funds like UTI NIFTY 500 VALUE 50 INDEX FUND with 100% returns. Shifting profits to safer options is a good move at your age. Let's evaluate suitable investment options.

Considering Safe Investment Options
Investing in MIP of Post Office, Kisan Vikas Patra, or Senior Citizens Scheme ensures safety. These options offer steady returns and low risk. They are ideal for preserving capital and generating regular income.

Importance of Certified Financial Planner
Consulting a CFP can provide tailored advice. They help assess your risk tolerance and financial goals. This ensures your investments align with your needs.

Evaluating Top 50 NSE Stocks
Investing in top 50 NSE stocks can offer growth potential. However, it carries higher risk compared to fixed income schemes. Given your age, balancing risk and safety is crucial.

Timing and Budget Considerations
Waiting until the budget can offer insights into tax benefits or new schemes. However, market conditions can change. Consult a CFP to decide the best time to invest based on your financial goals.

Benefits of Actively Managed Funds
Instead of index funds, consider actively managed funds. They offer professional management and can adapt to market changes. This can lead to better returns and risk management.

Evaluating All Financial Aspects
Review your entire financial situation before deciding. Consider your expenses, other investments, and risk tolerance. Diversifying your portfolio ensures stability and growth.

Final Insights
Exiting high-return mutual funds and investing in safer options is prudent. Consider MIP, Kisan Vikas Patra, or Senior Citizens Scheme for safety. Consult a CFP for personalized advice and balanced investment strategies.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Hi Sir, Im 29 male,earning 75k post deductions, Im having 1.6Y baby,Ive term insurance and corporate health insurance. Ive set my goals as below Daughter education anount-(50-60 Lakhs) Considering the current fee structure assuming it would be this much Note:Amount mentioned for her whole education carrer. House purchase: It a long term goal I wanted to purchase own house. Not sure how much cost it would be in Bangalore after 10y.Kindly suggest how much one should save for the same. Retirement goal: For Retirement I would like to have a corpus of 2CR. Considering the above goals How can I achieve,Im doing investments as below 14K SIP Started from this year At present invested around 73K Direct stock value:65K SSY: 2K per month Emergency fund: Holding 6 month expenditure Liquid Amount 1L And I have a personal loan which will be completed by APR 2025. This is my current financial condition. Please suggest how can I achieve my Goals as per the current financial plan.
Ans: Hello;

I hope your term life cover is adequate (1.35-1.8Cr).
Apart from corporate health insurance it is always better to have personal health care cover as a precaution.

Glad to note that you reckoned these as important aspects of financial planning and mentioned about it upfront.

Now I recommend you the following:
Kid's higher education: 1 Cr (50-60L is less)
Retirement Corpus: 2 Cr
House: 1.75 Cr (Approx cost of 2 bhk flat in decent locality of Bengaluru 10 years hence)

Investments to fund these goals:
1. Kid's education:
Two investments will work in parallel to reach the goal.
12.5 K per month in SSY
10 K SIP in a aggressive hybrid mutual fund. Both these investments will yield corpus of around 46 L and 54 L in 15 years from now.(8% and 13% returns assumed respectively). So 1 Cr target achievable.

House: 14 K monthly sip will grow into a corpus of 35 L(=20% down payment for house worth 1.75 Cr; Balance through home loan)

Retirement corpus:
Start a monthly sip of 5 K flexicap mutual fund which will give corpus of 2.21 Cr, after 30 years.

Retirement corpus estimated on relatively lower side so request you to top it up as and when possible. Ofcourse you may have EPF which may complement it.

Do not dabble into direct stocks unless you have the knowledge and temperament to trade.

If you still want to do it earmark a fixed amount as your risk capital which you wouldn't mind even if it becomes zero and use it to deal in stocks, but strictly based on self knowledge and/or guidance from an investment advisor. Not based on TV and social media tips!!

6 month emergency fund provision in liquid funds is a good strategy.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 05, 2024Hindi
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I am 41 years old........ I am earning approximately 1.7 lakh per month...... My family liability is approximately 50000 per month.......i have a liability of 10 lakh home loan for which i am paying 12500 monthly EMI.......my investment include 40000 per month in PPF, 4200 in NPS and 3 lakh invested in mutual funds......I own a house worth 70 lakh and a plot of land worth 30 lakh.......please guide me for my forther planning as i will retire at age of 54 on 2037.
Ans: Hello;

If you are sure about not using the land plot in future then I suggest you sell it and invest the proceeds into mutual funds.

So land sell proceeds(30 L) + existing corpus of 3 L if stays invested in pure equity mutual funds for next 13 years, it will yield you a corpus of 1.62 Cr.

Also I recommend you to start a monthly sip of 50 K into pure equity fund for 13 years. At the end of 13 years it may yield you a corpus of around 2.04 Cr. (A modest return of 13% is assumed for all mutual fund investments)

NPS investment will not mature till you reach 60 so I am keeping it out of our working.

Your contribution of 40 K per month to EPF+PPF(PPF contribution cannot be more then 1.5 L per person per year) will grow into a corpus of 1.1 Cr after 13 years.(A modest return of 8% is assumed)

So your comprehensive corpus in 2037 will be 1.62+2.04+1.1= 4.76 Cr.

If you buy an immediate annuity from an insurance company for your corpus of 4.76 Cr, you may expect a monthly payout of 1.66 L(post tax) considering annuity rate of 6%.

If you don't want to sell the land parcel then I recommend you to start an sip of 60 K per month for 13 years. This may yield you a corpus of 2.45 Cr after 13 years.

3 L current MF corpus will grow to 0.1469 Cr after 13 years

So your comprehensive corpus now is 2.45+1.1+0.1469=~3.70 Cr

If you buy an immediate annuity from an insurance company for your corpus of 3.7 Cr then you may expect to receive a monthly payout of 1.3 L(post tax).

Further NPS will yield you a corpus of 25.5 L at the attainment of 60 years of age.(9% return considered; hoping you will continue to contribute after your retirement at 54 age)

I am sure you have adequate term life insurance and healthcare insurance for yourself and family.

You are ready to retire at 54 as planned.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Radheshyam

Radheshyam Zanwar  |968 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Oct 07, 2024

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My son is doing his XII Standard in CBSE Curriculum with Maths,Physics, Chemistry and Biology as his group. He is yet to decide on what next after XII with his mind wavering between Astro Physics or Micro Biology with NEET in mind. Any guidance is welcome.
Ans: Hello Srinivasan.
I am glad to hear that your son is exploring diversified fields at this early stage. Astrophysics and Microbiology both are fascinating and rewarding paths, but they differ significantly in terms of the career options and the type of studies involved.
My suggestion for your son would be to focus only on the NEET examination at this stage. There is no need to divert the mind without any reason at this stage. After the NEET examination is over, you have ample time to discover more career options along with Astrophysics and Microbiology. The inclination toward career options of a student changes multiple times during the 11th and 12th. If he is brilliant, a hard worker, and dedicated to his studies, then set a goal of Min 650 marks in the NEET examination.
For Astrophysics: Focus on excelling in Physics and Maths in XII. He can apply to top institutions like IISc, IITs, or IISERs for B.Sc. programs.
For Microbiology: Prepare for NEET if he wants to take the medical path. Otherwise, he can explore a B.Sc. in Microbiology at a reputable university.

Best of luck for his future career and upcoming NEET examination.

If you are dissatisfied with the reply, please ask again without hesitation.
If satisfied, please like and follow me.
Thanks.

Radheshyam

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Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Money
Now I'm 43 years old, but next 5 year's I need 3cr with best mutual funds to invest and son education, marriage and my retirement, currently I have housing loan commitment. 70lakhs, how should I close my loan ASAP and I should have 3cr in my hand. Kindly help me, I'm in scary situation, I'm working in private sector 95k my take home and current home loan emi is 63k, 4500 recently started investment through groww app in parakh Parikh small fund, 12500 in PPF etc, kindly help. I'm completely in debt trap.
Ans: Hello;

General Comments:
People always delay retirement planning for later stage but this is not ok.

Because when you are young the investible surplus amount maybe less but you have the biggest resource, time on your side.

A mere 25K monthly sip can achieve 3 Cr in 20+ years

Query Specific Comments:
If you need this corpus in 5 years then you need to make a monthly sip of 3.55 Lacs Minimum to reach 3 Cr corpus in 5 yrs.(modest return of 13% considered).

Focus on improving your earning because then you can earmark larger amounts for investing towards your goals.

Also try to prepay the home loan as early as possible through EPF corpus or some asset sale.

Do not panic if you diligently pre-close the home loan you have ample time to invest and create a comfortable corpus for your goals.

Continue investing in MFs with increasing allocation, PPF to reach your goals.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Milind

Milind Vadjikar  |351 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Asked by Anonymous - Oct 07, 2024Hindi
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Money
I am 24 years old and earn a monthly salary of Rs.65,000. I am interested in investing some of my funds for future financial security and am also planning to marry in two years. As I have no prior knowledge of investment, I would greatly appreciate guidance on this matter.
Ans: Hello;

First and foremost buy a good term life cover including riders for critical care and accident benefit.

Ensure that you can top-up the sum assured later when you grow your responsibilities after marriage.

For retirement planning you should consider investing in NPS. If your office provides it well and good but otherwise also you can open NPS account and contribute regularly for financing your retirement. It's an E-E-E type of scheme. Charges are quite low and you can decide to select allocation to the asset classes like equity, corporate debt or sovereign bonds as per your risk tolerance. It allows limited withdrawal before 60.

If you decide to contribute to NPS per month an amount of 20 K, it will grow into a corpus of 6.51 Cr by the time you are 60 years of age.(A modest return of 9% is considered)

For all other goals such as marriage, house, kid's education, car, vacation you can use mutual funds as your mode of investments.

If you do a monthly sip of say 15 K into a pure equity mutual fund then at the end of 5 years you may expect to receive a corpus of 12.72 L considering moderate return of 13%.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...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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