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Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 24, 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 - May 23, 2024Hindi
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Hello sir, my husband is paying for HDFC ergo life insurance it's almost 3 years ..but now he has changed the job and large amount is getting deducted as part of only life insurance.can we discontinue our HDFC life package will it get refunded? Other thing is which is good health insurance policy for a family of 3 ? . .

Ans: Managing Life and Health Insurance: A Comprehensive Guide
Your concerns regarding life insurance and health insurance are valid, and addressing them is crucial for your financial well-being. Let's explore your options and provide guidance on managing your insurance policies effectively.

Assessing the HDFC Life Insurance Policy
Understanding Policy Terms
Review the terms and conditions of the HDFC Life Insurance policy to understand the cancellation and refund policies.

Policy Cancellation
Contact HDFC Ergo Life Insurance to inquire about the possibility of discontinuing the policy and whether any refund is applicable.

Refund Eligibility
Evaluate the refund eligibility criteria based on the policy's surrender value and the duration of premiums paid.

Exploring Health Insurance Options
Family Health Insurance
Research and compare various health insurance policies available in the market to find the most suitable option for your family of three.

Key Considerations
Consider factors such as coverage amount, premium affordability, network hospitals, claim settlement ratio, and policy features.

Recommended Health Insurance Providers
Research reputable health insurance providers in India known for their comprehensive coverage and reliable services.

Crafting a Health Insurance Strategy
Coverage Requirements
Assess your family's healthcare needs and determine the optimal coverage amount required to safeguard against medical expenses.

Customized Policy
Customize your health insurance policy to include coverage for critical illnesses, pre-existing conditions, and other specific requirements.

Premium Affordability
Choose a health insurance policy with a premium that aligns with your budget while providing adequate coverage.

Benefits of Regular Funds Investing through MFD with CFP Credential
Disadvantages of Direct Funds
Direct funds require active management and market knowledge.

Investors may lack expertise in fund selection and portfolio management.

Benefits of Regular Funds Investing through MFD with CFP Credential
Working with a Certified Financial Planner ensures personalized guidance and expert advice.

MFDs provide tailored investment strategies aligned with your financial goals and risk profile.

Conclusion
Managing insurance policies effectively is essential for financial security and peace of mind.

Evaluate the options for discontinuing the HDFC Life Insurance policy and explore refunds if applicable.

Research and select a comprehensive family health insurance policy from reputable providers.

Consult a Certified Financial Planner for personalized guidance on insurance management and financial planning.

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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Rakesh

Rakesh Kaul  |3 Answers  |Ask -

Answered on Jan 18, 2022

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 I have family floater policy since 5 years with Apollo Munich, Which is changed now to HDFC Ergo. I am paying approximately 36000 for 2 +1 family, I am aged now 62 years. I am not getting proper service from the person from whom i took the Apollo policy he is called Intermediator in the Apollo company and when it’s changed to HDFC his Records (like his name Mob Number and his Code) are not shown in the policy. In the absence of the above details, I don’t know whom to contact for any information and follow up for claim reimbursements. In the past years, with Apollo and HDFC Ergo my reimbursement claims was not settled ON TIME as well as the full amount not settled, approximately 50 to 60 percentage only settled even after many follow ups, courier and emails. Though the claims were around 50000 only. I am the bread winner in my family, after paying so much for Premium, if I get admitted in hospital, the family members can’t do follow up and intermediary is not helpful, even he doesn’t bother to attend phone call, though he is substantially earning 15% premium as his commission (I hope) in such scenarios I am fearing that you won’t get help. What is your advise? Should I change the intermediary in the policy, if there is provision in system? Why in HDFC Ergo why those intermediary details not there or portability is another option and what are conditions to meet portability at the ripe age/ financial scenario I should not be denied cashless facility/ at the need of my HOUR.
Ans:  The intermediary can be changed in the policy by the Insurer upon a request by the customer. However, for claims assistance, I would advise you to connect with your Insurer’s customer service team to get a response swiftly.

Portability of a policy can be done at any age but there are certain guidelines that differ from insurer to insurer. It is advisable to get the complete details of the insurance company you wish to port to and thoroughly understand the portability/ continuity benefits which will be carried forward in your ported policy. Please ensure you check the product/ plan coverages offered and compare it with the existing policy before making your decision to port.

..Read more

Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

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Hello sir ,my huband has taken medical insurance frm manipal cigna frm 2015 till date never claimed anything all these years but last year july suddenly my husband got pneumonia he got hospitalized before joining inthe hospital we consulted the insurance agent and took necessary file number to claim insurance but sadly at the end insurance company rejected to pay bill saying(2.5lks) he used to pay 58 thosand per year family floater,now thy have canceled whole policy and thy didn't even paying the amt we paid all these years ,agent is not responding can we do anything to get our hard-earned money back now we dont have any medical insurance he is 57yrs now pls suggest anything we can do
Ans: I'm truly sorry to hear about your husband's health complications and the subsequent challenges with your medical insurance. Facing such situations can be distressing, especially when dealing with unexpected denials and cancellations. It's important to take action to address this issue.

Firstly, gather all relevant documents, including policy details, correspondence with the insurance company, and any communication with the agent. This documentation will be crucial in understanding the reasons for the denial and in any potential appeals or legal actions.

Next, consider reaching out directly to the insurance company to request a review of the decision and clarification on why the claim was rejected. If you're unsatisfied with their response, you may escalate the matter through their grievance redressal mechanism or regulatory authorities.

Additionally, seeking legal advice from a lawyer who specializes in insurance matters could provide insight into your rights and options for recourse. They can help you navigate the complex legal landscape and pursue appropriate action to recover your hard-earned money.

While the situation is undoubtedly challenging, remember that you're not alone. Reach out to consumer rights organizations or advocacy groups that may offer support and guidance in dealing with insurance-related issues. Your perseverance and determination to seek justice are commendable, and I hope you find a resolution that provides the relief and security you deserve.

..Read more

Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

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

Latest Questions
Nayagam P

Nayagam P P  |4453 Answers  |Ask -

Career Counsellor - Answered on Apr 23, 2025

Asked by Anonymous - Apr 23, 2025
Career
My daughter 90percentile in jee mains 2025,and puc board exam 95.6 percentage and kcet is 101 marks we are obc ncl and catgory 1 reservation can we get nit surathkal college for admission or other top 3 college in bangalore and she want to take jee advance 2025 , which branchas scope and high package
Ans: As far as KCET is concerned,? here are the some approximate expected KCET opening and closing ranks for the OBC-NCL category across four top engineering colleges in Bengaluru:?

RV College of Engineering (RVCE)
Computer Science & Engineering: Opening – 2,000 | Closing – 3,000
Electronics & Communication Engineering: Opening – 2,500 | Closing – 3,500
Electrical & Electronics Engineering: Opening – 3,000 | Closing – 4,500
Mechanical Engineering: Opening – 4,000 | Closing – 6,000
Civil Engineering: Opening – 5,000 | Closing – 7,000?

BMS College of Engineering (BMSCE)
Computer Science & Engineering: Opening – 2,500 | Closing – 4,000
Electronics & Communication Engineering: Opening – 3,000 | Closing – 5,000
Electrical & Electronics Engineering: Opening – 4,500 | Closing – 6,500
Mechanical Engineering: Opening – 6,000 | Closing – 8,000
Civil Engineering: Opening – 7,000 | Closing – 9,000?

M S Ramaiah Institute of Technology (MSRIT)
Computer Science & Engineering: Opening – 2,200 | Closing – 3,800
Electronics & Communication Engineering: Opening – 3,500 | Closing – 5,500
Electrical & Electronics Engineering: Opening – 5,000 | Closing – 7,000
Mechanical Engineering: Opening – 6,500 | Closing – 8,500
Civil Engineering: Opening – 7,500 | Closing – 9,500?

Dayananda Sagar College of Engineering (DSCE)
Computer Science & Engineering: Opening – 3,000 | Closing – 5,000
Electronics & Communication Engineering: Opening – 4,500 | Closing – 6,500
Electrical & Electronics Engineering: Opening – 6,000 | Closing – 8,000
Mechanical Engineering: Opening – 7,500 | Closing – 9,500
Civil Engineering: Opening – 8,500 | Closing – 10,500?

Note: The above ranks are indicative and based on available data for the OBC-NCL category. Every year, actual cutoffs may vary based on factors like seat availability, reservation policies, and candidate preferences.

?Regarding the chances of getting seats through JEE/JoSAA Counselling, here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main 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 Daughter's Admission Chances Using JoSAA Data
Step 1: Collect Your Daughter's Key Details
Before starting, note down the following details:

Her JEE Main percentile
Her category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Her Preferred institute types (NIT, IIIT, GFTI)
Her 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 your daughter is 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 her 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.

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 daughter's admissions!

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

...Read more

Nayagam P

Nayagam P P  |4453 Answers  |Ask -

Career Counsellor - Answered on Apr 23, 2025

Asked by Anonymous - Apr 23, 2025
Career
I got 98.02%ile in JEE MAINS session 2 . (EWS) Can I get TOP NIT (CSE) ?? EWS RANK 4146
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main 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.

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!

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2025

Money
Hello Sir. I currently have a home loan of 52 lakhs with 16 years remaining on the tenure. Following the recent RBI repo rate update, my interest rate has been reduced to 8%. I now have a lump sum of 5 lakhs available. Could you please advise whether it's more beneficial to use this amount to make a prepayment towards the principal of my home loan or to invest it in stocks or mutual funds? Which option would offer better financial returns in the long run - closing the loan early or investing for potential growth?
Ans: Many banks have marginally reduced home loan interest rates, and your current rate at 8% is already among the better ones in the market.

Now, let's evaluate your decision clearly and simply — whether to use the Rs. 5 lakh lump sum to prepay your home loan or invest it for long-term growth.

 

Understanding the Current Loan and Investment Scenario
You have a home loan of Rs. 52 lakh.

 

The remaining tenure is 16 years.

 

Current interest rate is 8% per annum.

 

You have Rs. 5 lakh available for use.

 

You are thinking whether to prepay or invest.

 

This is a common and important financial decision.

 

We must assess it from all angles before choosing.

 

The right decision depends on goal, emotion, tax, and future cash flows.

 

Emotional Perspective: Peace of Mind vs. Growth
Prepaying reduces debt. It gives mental peace.

 

You feel more in control. EMI burden reduces.

 

You sleep better with lower outstanding balance.

 

But it stops your money from growing faster.

 

Investing in mutual funds or stocks offers growth.

 

But it comes with risk and market ups and downs.

 

If peace matters more, prepaying makes sense.

 

If growth is your priority, investing is better.

 

Know what feels right to you emotionally first.

 

Loan Prepayment: What Happens Financially
Your interest rate is 8% now.

 

If you prepay Rs. 5 lakh, your total interest reduces.

 

Your tenure may reduce. Or EMI may reduce.

 

Prepayment early in the loan saves more interest.

 

It gives guaranteed return. No risk is involved.

 

The effective return is same as your loan rate.

 

So, prepayment offers you a risk-free 8% return.

 

There is no tax to pay for this gain.

 

It is also simple and stress-free to do.

 

But once paid, that money is locked.

 

You can’t use it again unless you refinance.

 

Prepaying also lowers your home loan tax benefits.

 

Home Loan Tax Benefits You Must Consider
You claim Rs. 2 lakh yearly deduction on interest.

 

You also claim Rs. 1.5 lakh under 80C for principal.

 

These benefits reduce your taxable income.

 

So, effective cost of loan is less than 8%.

 

If you prepay, these benefits reduce or stop.

 

That means you lose part of the tax advantage.

 

If your tax slab is 30%, loan cost is closer to 5.6%.

 

In this case, investing may be better long-term.

 

Investing That Rs. 5 Lakh: Pros and Potential
You can invest in mutual funds for long-term.

 

Equity mutual funds can deliver 10% to 12% annually.

 

Over 10 to 15 years, it may grow 3-4x.

 

You also maintain liquidity with this approach.

 

You can withdraw in emergencies if needed.

 

Mutual funds are flexible and diversified.

 

Choose actively managed mutual funds only.

 

Do not invest in index funds.

 

Index funds just follow the market. No expert help.

 

In falling markets, index funds fall sharply.

 

They do not protect downside risk.

 

Skilled fund managers in active funds manage risks.

 

They can outperform the market over long term.

 

Actively managed funds offer better returns potential.

 

Also avoid direct plans without guidance.

 

Direct funds save cost, but lack expert advice.

 

You may pick wrong funds or exit at wrong time.

 

Regular plans through MFDs with CFPs offer support.

 

They help with reviews, rebalancing, and discipline.

 

That adds more value than low fees of direct plans.

 

So, choose regular funds with an MFD having CFP tag.

 

If you invest Rs. 5 lakh today in such funds, it can grow well.

 

Your Risk Appetite and Financial Behaviour
Are you okay with market ups and downs?

 

Can you avoid panic during a fall?

 

Can you hold on for 10-15 years?

 

If yes, investing is good for you.

 

If no, then prepaying loan is safer.

 

You must assess your risk profile.

 

Talk to a Certified Financial Planner for help.

 

Choose the option that matches your risk appetite.

 

Liquidity and Emergency Planning
Once you prepay, the Rs. 5 lakh is gone.

 

You can't get it back easily.

 

That reduces your liquidity.

 

If you invest instead, you keep access.

 

That money can be withdrawn in emergencies.

 

Liquidity is important in uncertain times.

 

Always maintain an emergency fund.

 

It should cover 6 to 12 months’ expenses.

 

Prepay only if this fund is already ready.

 

Don’t use all cash for prepayment.

 

Keep some buffer aside always.

 

Opportunity Cost of Prepaying vs Investing
Prepaying gives 8% return. No risk.

 

Investing can give 10% to 12%, but with risk.

 

Over long term, investing can give more wealth.

 

But returns are not guaranteed.

 

You may see short term losses too.

 

But with 15+ years holding, risk reduces.

 

If goal is wealth creation, investing wins.

 

If goal is safety and less EMI, prepaying wins.

 

Choose based on what matters more.

 

Use Balanced Approach: Prepay + Invest
You don’t need to do only one thing.

 

You can divide Rs. 5 lakh into two parts.

 

For example, prepay Rs. 2 lakh.

 

Invest Rs. 3 lakh in mutual funds.

 

This gives you lower EMI or tenure.

 

Also helps grow wealth for the long term.

 

This gives you mental peace and future returns.

 

It is a balanced and smart approach.

 

It avoids regret in future.

 

You win both ways – safety and growth.

 

Ensure your emergency fund is not affected.

 

Check if your mutual fund portfolio is aligned.

 

Take help from a CFP-backed mutual fund distributor.

 

Review your portfolio every year.

 

Stay invested without panic during market falls.

 

That is how wealth creation happens.

 

Final Insights
You are thinking wisely about using your Rs. 5 lakh lump sum.

Prepaying the home loan gives peace and fixed savings. It is a safe path.

But investing in mutual funds has higher potential returns. It needs patience.

There is no single “correct” answer. Both are good depending on your goal.

If safety and peace are top priority, prepaying is better.

If long-term growth is your goal, then invest in mutual funds.

Ideally, a 50-50 approach works best for most people.

It gives balance. And keeps options open.

Review this decision every year with a Certified Financial Planner.

That ensures your financial journey stays on the right path.

  

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8284 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2025

Money
Hi I am 29 yrs old and a middle class salaried person. Currently i am having an investemnt of Rs. 4400 in MF scatered equally in 4 different MF mentioned below from last 1 yr with 10% increase in investment annually. ICICI Pru Bharat 22 FOF - Growth - Rs 1100/m SBI PSU Fund - Growth - Rs 1100/m Motilal Oswal Midcap Fund - Growth - Rs 1100/m Nippon India Smallcap Fund - Growth - Rs 1100/m Apart from the above investment I am also invested in NPS (kotak NPS) from last 1 yr with Rs 5000/m. Also I have a RD of Rs 30000/m going since last 9 months matures in 15 month from this will be allocating half of the funds for emergency or liquid funds and the other half want to invest as lumpsum in MF. I want to build a good amount of wealth for my retirement by the age of 60. Also want to buy a home of my own. Are the investment listed above enough and which MF to choose for lumpsum investment. Thank you.
Ans: You Have Made a Good Start
You are 29 years old and already investing monthly in mutual funds.

You are also investing in NPS regularly, which helps in retirement planning.

Saving Rs 30,000 per month in RD shows good discipline and consistency.

You have a clear goal of retirement at 60 and buying your own house.

Your financial awareness at this age is impressive and rare.

Current Mutual Fund Allocation Needs Restructuring
You are investing in sectoral and mid/small-cap funds.

These carry high risk and are not suitable as core portfolio.

They are good for extra returns, not for stability and long-term balance.

Consider including large-cap and flexi-cap funds to create a strong core.

These funds offer growth with better risk management.

Annual SIP Hike Is a Wise Habit
Increasing SIPs by 10% yearly builds a strong compounding habit.

It helps you keep pace with inflation and rising future costs.

Continue this pattern every year, even during volatile markets.

Use the RD Maturity Smartly
Once RD matures, split the money as you planned.

Keep half in an emergency or liquid fund.

Invest the other half in mutual funds through STP.

STP spreads the lump sum over time and avoids market timing risk.

NPS Is a Long-Term Asset
Keep investing in NPS for retirement benefit and tax savings.

Ensure you select the right asset mix in NPS.

NPS allows equity allocation up to a limit.

The right mix can help grow your retirement corpus better.

Emergency Fund Should Be a Priority
Emergency fund should cover six months of expenses.

Use low-risk, liquid options to store this fund.

It protects you during income loss or sudden costs.

Buy Insurance Independently
Do not depend only on your employer’s health and term cover.

Personal term insurance gives you full control.

It is important if you have dependents or plan to take a home loan.

Health insurance must also be purchased personally.

Medical costs are rising fast and can strain your savings.

Buying a Home Needs Planning
Fix a timeline and estimate the cost of your home.

Based on that, calculate the money needed over the years.

Save for home separately from your retirement fund.

For short-term goals like this, do not use equity funds.

Instead, use safer options like short-duration debt funds.

Avoid Index Funds for Your Profile
Index funds simply copy the market and cannot protect downside.

You need active fund managers to handle your investments.

They aim to beat the market and reduce volatility impact.

Active funds offer better balance of growth and protection.

Avoid Direct Funds If You Want Guidance
Direct funds have lower cost but no advice or strategy support.

Mistakes can happen without expert review and monitoring.

Regular funds via a professional help you stay disciplined.

Portfolio review, fund switch, and rebalancing are handled.

This adds value in the long term beyond just cost savings.

Tax Rules You Should Know
Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.

Short-term gains from equity funds are taxed at 20%.

Debt funds are taxed as per your income slab.

Always check tax impact before redeeming your investments.

Step-by-Step Actions to Take
Rebuild your SIP portfolio to include large-cap and flexi-cap funds.

Retain small/mid-cap funds but with a smaller share.

Build a 6-month emergency fund first from RD maturity.

Invest lump sum from RD slowly over 6-12 months via STP.

Buy term insurance and health insurance right away.

Continue NPS with equity tilt for growth.

Start a separate saving bucket for home purchase.

Review your SIPs every year and increase as your income grows.

Keep tracking your goal progress at least once a year.

Finally
You have laid a strong base early in your life.

Keep this momentum with annual review and disciplined savings.

Use every salary hike to increase your investments.

Avoid unnecessary loans and credit card expenses.

Follow your plan and seek help when needed.

Focus on long-term wealth and risk protection, not short-term returns.

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

...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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