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Ramalingam

Ramalingam Kalirajan  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 04, 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
Vikram Question by Vikram on Jun 03, 2024Hindi
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Money

Hello sir I want to invest 40 lakhs for getting monthly fixed income. Please suggest me which is the best platform to get it and how much can I get it ?? Our advice will be very valuable for me to go ahead.

Ans: Understanding SWP for Monthly Fixed Income
Investing Rs 40 lakhs to generate a monthly fixed income is a wise decision. Systematic Withdrawal Plan (SWP) through Mutual Funds Distributor (MFD) is an effective strategy.

Benefits of SWP through MFD
Regular Income:
SWP allows you to withdraw a fixed amount regularly. This ensures a steady monthly income.

Tax Efficiency:
SWP withdrawals are more tax-efficient compared to traditional fixed income options. Only the capital gains portion of the withdrawal is taxed.

Flexibility:
You can choose the amount and frequency of withdrawals. This flexibility helps in meeting your specific income needs.

Professional Management:
Investing through an MFD ensures that your funds are managed professionally. This enhances potential returns and risk management.

Steps to Implement SWP through MFD
1. Select Suitable Mutual Funds:
Choose funds that align with your risk tolerance and financial goals. Balanced or hybrid funds are typically recommended for SWP.

2. Determine Withdrawal Amount:
Decide the fixed amount you need monthly. Ensure it is sustainable based on the expected returns of the chosen funds.

3. Initiate SWP:
Set up the SWP with your chosen MFD. Specify the withdrawal amount and frequency.

Projecting Monthly Income from Rs 40 Lakhs
Assumed Returns:
Let's assume an average annual return of 8% from a balanced mutual fund. This return is achievable with a mix of equity and debt.

Withdrawal Calculation:
A conservative withdrawal rate is around 6% per annum. This ensures the corpus is not depleted quickly.

Example Calculation
Initial Investment: Rs 40 lakhs.
Annual Return: 8%.
Monthly Withdrawal Rate: 0.5% of the initial corpus (6% annually).
Monthly Income:

Rs 40,00,000 * 0.005 = Rs 20,000.
You can expect around Rs 20,000 per month. This is a conservative estimate to ensure the corpus lasts longer.

Factors to Consider
Market Volatility:
Market fluctuations affect mutual fund returns. A diversified portfolio mitigates this risk.

Inflation:
Inflation erodes purchasing power over time. Ensure your withdrawal amount is periodically reviewed and adjusted.

Reinvestment:
Reinvesting a portion of the returns back into the fund helps in maintaining the corpus.

Advantages of SWP through MFD
1. Capital Appreciation:
The invested corpus continues to grow even as you withdraw. This balances income generation with capital growth.

2. Professional Guidance:
MFDs provide expert advice on fund selection and withdrawal strategies. They help in maximizing returns and minimizing risks.

3. Convenience:
SWP setup through MFD is straightforward. It ensures timely withdrawals without manual intervention.

Conclusion
Investing Rs 40 lakhs through SWP with the help of an MFD is a prudent strategy for generating monthly fixed income. It offers regular income, tax efficiency, and professional management.

By choosing suitable funds and a sustainable withdrawal rate, you can enjoy a steady income while preserving your corpus. Consulting with a certified financial planner for personalized advice ensures your financial goals are met efficiently.

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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Tax, Mutual Fund Expert - Answered on Apr 11, 2023

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Hi..i am 48..i want to invest 50 lacs in total out of which I want Rs.25000 as fixed monthly income and remaining amount I wish to invest for 5 years+.. please suggest.regards
Ans: Dear Rajshekhar,

Thank you for reaching out for financial advice. Based on your requirements, I suggest the following investment strategy to achieve a fixed monthly income of Rs. 25,000 and invest the remaining amount for 5 years or more.

Fixed monthly income:
To achieve a fixed monthly income of Rs. 25,000, you can consider investing in a combination of fixed deposits, post office monthly income schemes, or debt mutual funds with a dividend payout option.
For instance, if you invest Rs. 30 lakhs in a fixed deposit or a post office monthly income scheme with an annual interest rate of around 6%, you can generate a monthly income of approximately Rs. 25,000. However, please note that the interest rates might vary depending on the bank, post office, or financial institution you choose. Do consider taxes and inflation while making these investments.

Investment for 5 years+:
For the remaining Rs. 20 lakhs, you can consider a mix of equity and debt mutual funds. A balanced or hybrid mutual fund, which invests in both equity and debt securities, can be a good option for a 5-year investment horizon. This diversified approach can help in achieving moderate returns with lower risk exposure.
You can also explore other investment options such as National Pension System (NPS) or tax-saving fixed deposits if you're looking to save for your retirement or avail tax benefits.

Please note that this is general advice, and I would recommend consulting with a certified financial planner or advisor for a personalized investment plan based on your risk tolerance, financial goals, and specific circumstances.

I hope this helps you in achieving your financial objectives.

..Read more

Ramalingam

Ramalingam Kalirajan  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - May 10, 2024Hindi
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Hello sir, I want to invest 30 lakhs to generate monthly income, which is the best to get every month income? I need your valuable advice?
Ans: Generating Monthly Income: A Strategy for Investing 30 Lakhs

Understanding Your Financial Objective:

Hello! I appreciate your proactive approach towards financial planning. Let's explore the best options to generate a steady monthly income from your investment of 30 lakhs.

Assessing Income Needs:

Before diving into investment options, it's crucial to understand your monthly income requirements and risk tolerance to tailor a suitable strategy.

Exploring Income Generating Options:

We'll evaluate various investment avenues that offer regular income, such as fixed deposits, debt mutual funds, dividend-paying stocks, and systematic withdrawal plans (SWPs) from mutual funds.

Benefits of Fixed Deposits:

Fixed deposits provide a stable source of income with guaranteed returns. However, they may offer lower returns compared to other investment avenues and are subject to taxation.

Benefits of Debt Mutual Funds:

Debt mutual funds invest in fixed-income securities like bonds and government securities, offering potentially higher returns than fixed deposits. They also provide liquidity and tax efficiency.

Disadvantages of Direct Equity Investments:

Direct equity investments can be volatile and may not suit investors seeking stable income. Additionally, managing a diversified equity portfolio requires time and expertise.

Benefits of Systematic Withdrawal Plans (SWPs):

SWPs allow you to withdraw a predetermined amount from your mutual fund investments at regular intervals, providing a steady income stream while potentially benefiting from capital appreciation.

Disadvantages of Index Funds:

Index funds may not be ideal for generating regular income as they track specific market indices and may not prioritize dividend yield or income generation.

Benefits of Actively Managed Funds:

Actively managed funds offer the flexibility to adapt to market conditions and select dividend-paying stocks or fixed-income securities to optimize income generation.

Considering Tax Implications:

It's essential to assess the tax implications of your investment income and explore tax-efficient options to maximize your after-tax returns.

Consultation with a Certified Financial Planner:

Engaging with a Certified Financial Planner (CFP) ensures personalized advice tailored to your financial goals and risk tolerance. A CFP will help optimize your investment strategy to meet your income needs effectively.

Conclusion:

In conclusion, generating a monthly income from your investment of 30 lakhs requires a careful assessment of various options. By diversifying your portfolio across fixed deposits, debt mutual funds, and SWPs from mutual funds, you can create a sustainable income stream aligned with your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ramalingam Kalirajan  |8104 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

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Hello Experts, I have a to invest a lump some amount of 10L for next 2years... Let me know the right investment platform... Thank you ????
Ans: Investing Rs. 10 lakh for a period of 2 years requires a careful approach. It's important to balance returns with safety and liquidity. Here are some recommended options.

Debt Mutual Funds
Advantages:

Lower risk compared to equity funds.

Suitable for short-term investment horizons.

Recommendation:

Short Duration Funds:

Invest in funds that offer stability and consistent returns.

Ideal for a 2-year period.

Corporate Bond Funds:

Focus on high-rated corporate bonds.

Provides better returns with moderate risk.

Fixed Deposits (FDs)
Advantages:

Assured returns with minimal risk.

Suitable for conservative investors.

Recommendation:

Bank Fixed Deposits:

Choose a reputed bank for better interest rates.

Ensure the FD term aligns with your 2-year investment horizon.

Corporate Fixed Deposits:

Opt for high-rated corporate FDs for slightly higher returns.

Check the credit rating and financial stability of the company.

Liquid Mutual Funds
Advantages:

High liquidity with low risk.

Better returns compared to savings accounts.

Recommendation:

Liquid Funds:

Invest in funds that provide quick access to your money.

Suitable for managing short-term cash needs.

Ultra-Short Duration Funds
Advantages:

Invests in debt securities with very short maturity periods.

Lower interest rate risk.

Recommendation:

Ultra-Short Duration Funds:

Focus on funds with a good track record.

Ideal for parking funds with better returns than savings accounts.

Recurring Deposits (RDs)
Advantages:

Regular savings with fixed returns.

Low risk investment option.

Recommendation:

Bank Recurring Deposits:

Suitable for systematic savings over the 2-year period.

Ensure you choose a bank with competitive interest rates.

Diversified Portfolio
Advantages:

Spreads risk across multiple asset classes.

Enhances overall returns.

Recommendation:

Combination of Debt and Liquid Funds:

Allocate funds between short duration, liquid, and ultra-short duration funds.

Balances risk and provides better returns.

Key Considerations
Risk Tolerance:

Low Risk: Opt for fixed deposits and ultra-short duration funds.

Moderate Risk: Consider short duration and corporate bond funds.

Liquidity Needs:

Ensure a portion of the investment remains easily accessible.

Liquid and ultra-short duration funds provide high liquidity.

Professional Guidance:

Consult a Certified Financial Planner for tailored advice.

Align investments with your financial goals and risk profile.

Final Insights
Investing Rs. 10 lakh for a 2-year period requires a balanced approach. Consider debt mutual funds, fixed deposits, liquid funds, and ultra-short duration funds. Diversify your investments to spread risk and enhance returns. Regularly monitor your portfolio and seek professional guidance for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1440 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 17, 2025

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My daughter is completed her 1 PUC and has started with 2nd PUC. In college they have started with CET coaching. She is a good swimmer and want to pursue water Polo and wants to go coaching in the morning. She tells 'I don't want to write CET. I don't want to pursue Engineering. I want to take up Marine Biology. I don't neet CET for that. I will study only for Board exam and pursue Swimming classes in the morning' We wanted her to take up CET to keep Engg as an option as Marine Biology is a niche field and might be difficult to land on a job as we have less scope in India She has made it clear if you force me i will not read and write exam without reading. Actually she is capable of writing CET, but she do not want to and she is not reading. Her focus is only on swimming
Ans: Hello Aruna.
If your daughter is passionate about swimming and water polo, encourage her to continue. Support her participation in national and international competitions. If she excels in these sports and obtains a valid certificate, she may secure a government job directly after graduation in the respective field. IIT Madras has even reserved two seats for sports candidates, meaning there is no need to take the JEE (Advanced). For more details, please visit the website: ugadmissions.iitm.ac.in/scope.
As a parent, your concerns are valid. If she fails to excel in her passion, what will happen to her future? It would be wise to suggest that she attempt the state-level CET entrance examination, even without preparation. Just ask her to submit the answer sheet with random answers. Even if she scores the minimum marks, she can still gain admission to a reputable engineering college through the management quota. If she is not willing to listen to you, it may be beneficial to take her for personal counseling. It raises the question of what she is doing with the remaining hours after spending one, two, or three hours swimming. If she is hesitant to join classes, consider hiring personal tutors to keep her engaged with the syllabus and studies. While a career in sports is possible, for many, it remains just a dream. The journey is quite challenging, and in most cases, strong political connections are needed to advance in sports. Your daughter might be unaware of this reality at a young age. It is advisable to explain these truths to her so that she understands the challenges ahead. Thank you.
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My age is 25 years and my boyfriend age is 29 years. I have boyfriend and we are dating for around 2 years, we are thinking about marriage. My family members love him and his family members love me. But the situation is like this that, my elder sister is getting divorce so it will take time atleast 4 years. But we can't wait for 4 years because my boyfriend is from gujarat. So in Gujarat, families dont wait for long but in my case my boyfriend and his family members waited for 2 years. Because my family members are saying when my elder sister will get married then after my marriage will come. and my family members are brain washing me and my boyfriend saying that first elder sister should get married if it takes times 6 years still u have to wait. My family members are pressurizing me alot. Infact I discuss and my boyfriend discuss with my family members about the situation but my family is not understanding and they are just pressurizing me alot and making my life hell. Even my elder sister is saying to me that my colleagues are not getting married why u have to get married soon. But my point is that I m not kid I m 25 years old and because of her I m suffering alot because if she cant get married I cant get married this wrong. And because of taht me and boyfriend are arguing alot in this. Like If i waited for my elder sister divorce plus her marriage it will take around 4 years. But I dont think so this is right because of my elder sister I m facing issues and thats wrong. Because i dont know whether after divorce she will get married or not. So because of her I m suffering alot. And the divorce procedure will take 4 - 6 years. Because we dont know that how much time will it take for my elder sisters divorce because she is not doing normal one she has cased a file against jiju so thats why it huge procedure. So that's why we think that we will do court marriage in next month. We both have a support from his family members. His family members are saying that do court marriage without knowing any ones relatives and once your family agrees within this year then its fine but if not then you come here next year and we will do marriage for both of you. So this is right?
Ans: Dear Anonymous,
You need to make a decision for yourself after looking at all the pros and cons. How are you going to be able to handle your parents once you make the decision to go ahead with the marriage?
Also, on your part, you are right in asking, how long do you need to wait?
Before making a decision, always think far ahead as to how your environment will react and how you are going to handle all of it.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Anu Krishna  |1557 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 17, 2025

Asked by Anonymous - Mar 09, 2025Hindi
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Hi Mam, My parents are not agreeing for the marriage with my boyfriend cause it's an interfaith relation. I tried convincing them but they keep on saying foul words to me, saying that they would kill themselves if I don't leave him. I had seen my family from childhood and I don't want to be in a similar situation as they are, my mother had a relationship with someone else after marriage, my sister is not the biological child of my father, I am aware of all those but I haven't blamed them for that cause I felt if that's what is making them happy let them be, I haven't even confronted them. Now they say all the good stuff that me and your father were very great to each other you should learn those things and all. I am struck in a situation now. I have a job and my boyfriend also has one, could you please suggest.
Ans: Dear Anonymous,
Judging your parents and their choices is not going to anyway help you in your context. So, why even go there?
Instead focus on your situation and how you can make things happen for yourself.
- Are you financially independent and will you be able to manage the discomfort that will emerge once you choose to be on your own?
- Will your boyfriend support your decision and will he stand by you when you go against your family?
- What does his side of the family have to say about all of this?
If you notice the questions above, none of them are set to 'convince' your family. It is almost impossible to convince someone who does not want to be convinced. These questions will give you an idea and enable to handle your situation by stepping up for yourself.

All the best!
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Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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