Hello Sir, I am investing 25k in kotak emerging equity fund, 2k in SBI blue chip fund, 2k in Nippon small cap fund and 1.5k in kotak flexicap fund. All are monthly SIPs. I want to remain invested for another 10 yrs atleast. Can I continue with these funds? Thanks

Ans: Hello;

You may begin a monthly sip of 1.2 L into a combination of MFs as follows:

25 K into flexicap fund
25 K into multicap fund
25 K into large cap fund
25 K into large and midcap fund
10 K into balanced advantage fund
10 K into multi asset allocation fund

You may select any fund from the top quartile of these fund categories or consult your MFD.

This may grow into a sum of 2.79 Cr by end of 10 years.

Similarly your assets like RE, existing MF corpus and gold may grow into a sum of 2.82 Cr in 10 years.
So your total corpus after 10 years will be 5.61 Cr.

If you buy an immediate annuity for this corpus from a life insurance company you may expect a post tax monthly income of around~2 L.

Happy Investing;
X: @mars_invest

Ans: Dear Anuj,
Listen, you are 17 but have begun to 'act' much older. Be your age and yes, at times the older sibling will be held responsible and sometimes the younger one too. Focus on studies, games and just being your age...there is a lot of time for you to play a grown-up and hey, that's not easy at all...so go slow...it may seem unfair that you get into the middle of things but as long as the family stays together, consider yourself fortunate. So, it's not yet time for you to think of what's going to happen when you really become the much 'older' brother, alright...

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

Ans: Dear Anonymous,
Did you mean 'test'? No, as far as I know, there is no virgin test possible and why would you want that to be done?

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

Ans: Dear Anonymous,
Consanguineous marriages (between people who are related by blood) can increase the chances of genetic disorders in their offspring. This could be the reason that your parents may not accept the marriage. It's a matter of understanding what your parents are saying and what makes them refuse the marriage. I suggest finding out from your parents what is going on in their mind.

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

Ans: 01. As per details provided, you have a LTCG (Long Tern Capital Gain) of Rs.14,64,000.00 (6000*(300-56)), without Indexation..
02. It shall be covered in F/Y 2022-23 or 2023-24 depending upon the date you received compensation. You tax calculations shall be different & depend upon the f/y in which the transaction falls. Benefit of indexation will also depend up to the date of transaction.
03. Date of purchase is also required for exact calculation of LTCG.
04. Assuming, your purchase is during f/y 2005-06 (117) & Sale is during 2023-24 (348), your LTCG tentatively shall be about Rs.8.00 lakhs, after Indexation.
05. This LTCG is likely to be taxed @20% (Rs.1.60 lakhs).
06. Many other factors will effect your tax calculations, like Other Incomes, Tax Savings etc., during this f/y under reference.
07. You may adopt tax planning to save LTCGs, by investing in House Property or Capital Gain Bonds etc.
Most welcome for any further clarifications. Thanks.

Ans: Hello;

It is too risky to bet on such SMEs hence request to avoid.

My recommendation would be to invest in its bigger peers like Angel, Motilal Oswal, 5 paisa etc after due research and analysis.

Best wishes;

Ans: Hello;

Please rephrase your question and submit again.

Thanks;

Ans: You have a well-diversified corpus of Rs. 3.5 crore.

Rs. 2 crore in equity and stocks is ideal for wealth creation.

Rs. 1.25 crore in mutual funds offers balanced exposure to equity and debt.

Rs. 25 lakh in debt ensures liquidity and stability for emergencies.

A government-employed spouse and rental income add financial security.

No loans or EMIs further strengthen your financial independence.

Can You Retire Now?
Your rental income of Rs. 1.5 lakh per month is a strong passive income.

Your wife’s stable government job ensures additional financial support.

Corpus and income sources are sufficient for retirement if managed well.

However, children’s education expenses and inflation must be planned carefully.

Steps to Consider Before Retirement
Plan for Children’s Education
Your daughter is in 10th and son in 7th, requiring education funding soon.

Set aside a dedicated corpus for higher education.

Invest in debt funds or balanced funds for medium-term needs.

Emergency Fund and Insurance Coverage
Maintain an emergency fund equivalent to 12 months’ expenses.

Ensure you have adequate health insurance for the entire family.

Consider critical illness insurance for additional coverage.

Inflation Protection
Inflation will erode the value of your fixed income over time.

Allocate a portion of your portfolio to equity for inflation-beating returns.

Review your expenses regularly and adjust investments accordingly.

Ideal Asset Allocation Post-Retirement
Equity Allocation
Keep 40%-50% of your portfolio in equity for long-term growth.

Focus on large-cap or diversified funds to reduce risk.

Debt Allocation
Allocate 40%-45% to debt for stability and regular income.

Use a mix of debt mutual funds, FDs, and senior citizen saving schemes.

Liquid Assets
Keep 5%-10% of your portfolio in liquid funds for emergencies.

Liquidity ensures immediate availability of funds without breaking investments.

Tax Efficiency in Retirement
Equity mutual funds provide tax-efficient long-term returns.

LTCG on equity above Rs. 1.25 lakh is taxed at 12.5%.

Debt mutual funds are taxed as per your income tax slab.

Optimise tax outgo by withdrawing systematically and using exemptions.

Steps to Manage Retirement Expenses
Budget your monthly expenses carefully to stay within income limits.

Limit discretionary spending to avoid overshooting your budget.

Set aside funds for annual or unexpected expenses, like travel or repairs.

Regular Review and Monitoring
Review your portfolio annually to ensure alignment with your goals.

Rebalance investments based on market conditions and life changes.

Consult a Certified Financial Planner for regular guidance and monitoring.

Finally
Your corpus, combined with rental income and your wife’s job, ensures financial stability. Proper allocation and disciplined spending will help you retire comfortably. Regular reviews will ensure your portfolio stays aligned with inflation and changing needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Your decision to retire at 46 is bold and inspiring. With a fixed deposit of Rs 90 lakh and Rs 73 lakh in provident fund, PPF, and NPS, you have a strong foundation. However, early retirement requires a detailed financial strategy to sustain your lifestyle for decades.

Key Considerations Before Retiring

Duration of Retirement

Retiring at 46 means planning for 40+ years of expenses.
Your corpus must support rising costs due to inflation.
Current Savings and Investments

Fixed deposits provide safety but offer limited growth.
Provident fund, PPF, and NPS are good for stability but lack liquidity.
Expenses Analysis

Assess your monthly expenses and project future costs.
Include inflation, healthcare, and lifestyle changes in calculations.
Challenges of Relying on Current Corpus

Inflation Impact

Inflation reduces the purchasing power of fixed returns.
Your corpus must grow to outpace inflation.
Lack of Liquidity

Provident fund, PPF, and NPS have withdrawal restrictions.
These funds may not be easily accessible during emergencies.
Long-Term Healthcare Needs

Healthcare costs are rising rapidly.
Without proper planning, these can deplete your savings.
Steps to Secure Early Retirement

Reassess Your Asset Allocation

Diversify your portfolio to include growth-oriented investments.
Equity mutual funds can help achieve inflation-beating returns.
Optimise Fixed Deposits

Fixed deposits offer low post-tax returns.
Shift a portion to debt mutual funds for better returns and tax efficiency.
Leverage Your NPS Investments

Use the NPS for long-term growth with equity allocation.
Regularly review its performance and adjust allocations if needed.
Creating a Sustainable Income Plan

Systematic Withdrawal Plan (SWP)

Use SWPs from mutual funds to generate a steady income.
This ensures cash flow while allowing your corpus to grow.
Emergency Fund Allocation

Maintain an emergency fund of Rs 10-15 lakh in a liquid fund.
This provides liquidity for unforeseen expenses without disrupting investments.
Health and Term Insurance

Ensure adequate health insurance to cover rising medical costs.
A term plan can protect your family if needed.
Tax-Efficient Wealth Management

Reduce Tax Liabilities

Fixed deposits and PPF offer limited tax-saving benefits.
Equity mutual funds provide better post-tax returns.
Strategic Withdrawals

Withdraw funds in a tax-efficient manner to minimise taxes.
Consult a Certified Financial Planner to optimise withdrawals.
Inflation-Proof Portfolio Strategy

Equity for Long-Term Growth

Increase exposure to actively managed equity mutual funds.
These funds aim to outperform and deliver inflation-beating returns.
Balanced Portfolio Allocation

Maintain a balance between equity and debt instruments.
This ensures stability while providing growth.
Avoid Over-Reliance on Index Funds

Index funds follow the market and may not offer superior returns.
Actively managed funds adapt to market changes for better performance.
Lifestyle and Financial Discipline

Review Your Lifestyle Needs

Assess your lifestyle and create a realistic budget for retirement.
Control discretionary expenses to extend the life of your corpus.
Plan for Future Goals

Allocate funds for long-term goals such as travel or philanthropy.
Regularly review and adjust your plan as circumstances change.
Stay Invested for Growth

Avoid holding excessive cash or low-return instruments.
Long-term investments are key to maintaining purchasing power.
Finally

Early retirement is possible with disciplined planning and execution.
Reassess your asset allocation to ensure sustained income and growth.
Invest in a diversified portfolio for inflation-beating returns.
Regularly review your financial plan and make adjustments when needed.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment