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Ramalingam

Ramalingam Kalirajan  |7557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 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
Anand Question by Anand on Mar 17, 2024Hindi
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Hello Sir, I have the following Mutual Funds Investments, request you to let me know if these can be continued with or need to discontinue any of them, also please let me know new good performing funds to invest in. One time investment: (1) ICICI/ India Opportunities Fund - Growth - ?2,50,000, (2) ICICI/ Value Discovery Fund - Growth - ?2,50,000, (3) ICICI / Transporation & Logistics Fund - Growth - ?2,00,000. SIP Monthly: (4) Axis Flexi Cap Fund - Regular Plan - ?5,000, (5) Canara Robeco Emerging Equities - Regular Plan - ?5,000, (6) Aditya Birla SL Focused Equity Fund(G) - â‚15,000, (7) HDFC Mid-Cap Opportunities Fund(G) - ?5,000, (8) ICICI Pru Bluechip Fund(G) - ?5,000, (9) Axis Small Cap Fund - Regular Plan - ?5,000, (10) ICICI Prudential Technology Fund - Growth - ?5,000, (11) L&T Midcap Fund - HSBC Midcap Fund - ?5,000, (12) ICIPRU Multi-Asset Fund - Growth - ?5,000, (13) ICIPRU Value Discovery Fund - Growth - ?5,000. Thank You.

Ans: Based on your current Mutual Funds Investments, here are some recommendations:

Existing Investments:
ICICI India Opportunities Fund: Review the fund's performance and consider its alignment with your investment objectives. If it continues to meet your goals and performs well, you can consider keeping it.
ICICI Value Discovery Fund: Similar to the above, assess its performance and suitability. If it has delivered satisfactory results and fits your investment strategy, you may continue with it.
ICICI Transportation & Logistics Fund: Evaluate the fund's performance and prospects in the current market scenario. If you're confident in its future growth potential, you can maintain your investment.
New Fund Recommendations:
Consider diversifying your portfolio by adding funds from different categories such as large-cap, mid-cap, and flexi-cap.
Look for funds with a consistent track record of performance, experienced fund managers, and a robust investment strategy aligned with your risk profile.
Conduct thorough research or seek advice from a Certified Financial Planner or Mutual Fund Distributor to identify suitable options based on your financial goals and risk tolerance.
Review and Adjustments:
Regularly review the performance of your existing investments and make adjustments as needed based on changes in market conditions, fund performance, and your financial goals.
Monitor the expense ratios, fund manager's track record, and the overall portfolio diversification to ensure optimal investment outcomes.
By carefully assessing your existing investments and making informed decisions about new fund allocations, you can build a well-balanced and diversified Mutual Funds portfolio that aligns with your long-term financial objectives.
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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Anu Krishna  |1447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 20, 2025

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hi maam im in love with a guy who i met in hyd im 24 years nd he is 28 we both r in love with eachother and wanna marry eachother but the prblm is that i come from a christian family and he comes from a hindu family my mom is not ready to accept him just because he is a hindu and my family r forcing me to get married to a christian guy itself they r mentally forcing me everyday to leave him just because he is a hindu nd our caste is different my family seperated me from him and forcing me to get married to a guy of their choice and in my family there r 16 members who have had love marriages i took help of my relative who also had a love marriage to convince my parents and help us to get married but she is the one who add more fake rumors and more fuel about him that he is doing timepass even if they talk to him in calls they say that he is not lifting our calls at all i have all the recordings but still they r lying to me nd my mom saying that he is not ready to talk about her it became difficult for me to convince them my mom listen to my relatives as they say and so they do i dont have anyone to support me to get married to my bf plz help i wanna marry him only and i see future with him he is the only one who make me laugh play with me like how a dad plays with his daughter i havent got the love from my parents when im getting the love from him they seperated me from him and forcefully bought me to my native place nd not letting me meet or see him im depressed asking my parents to meet him but they r like no we dont like him my parents r not ready to understand and they r saying he is with u only for ur money he also told my relatives that i dont want money but still they r keeping on adding fuel and mentally harrasing me to get married to someone else they r forcefully trying to get me married to someone else i wanna marry him only what should i do plz help i love him so does he
Ans: Dear Niveditha,
What caught my eye was the fact that you seem to have found the love that parents give their children with this person. This is not healthy as you are searching for what you lack in someone else. Work on this...and if this is the reason that you actually are in love with this person, you really need to work it.
Now when it comes to your parents' acceptance, your partner has to put in efforts to win them over and on your part rather than playing this emotionally with them, make your parents see what you see in your partner in terms of traits, qualities etc...And the less you involve family members into this circus, the better. At times, people come to have their share of fun by making things worse...So, be wise about who you involve.

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

...Read more

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Anu Krishna  |1447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 20, 2025

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Hi Anu I m married got last 18 years . I have 2 daughters .Elder us in 11th std science and younger is in 5th std . I more attached yo my younger daughter. I am always scolding my elder daughter as she doesn’t listen to me at all and always acts the opposite of what I tell her . She also doesn’t share anything about her life or any events or her plans with me or my husband. I come to know from her friends or there parents which annoys me a lot . Also myself and my husband relationship is not at all good . We are having lots of financial issues . He has incurred major loss in stock market and he wants to set it right and is involved with wrong people for making things proper. He’s hot zero knowledge of stock market and has taken multiple loans and now my parents are repaying the loans . He’s not ready to listen to anyone and also trying to avoid any kind if communication or conversation with me . Even our daughters are not getting good family support during there crucial age . I Ann confused and don’t understand how yo handle him and due to this issues I am always stressed and all my anger is on my daughter. Please guide me
Ans: Dear Minu,
It's possible that your older daughter has been a witness to many arguments between you and your husband in her growing years and that could have caused her to shut down and be within herself.
Whatever the reason, what's the point in being angry with her? When we want to see a behavior change from our children, it's our turn first. So, as parents work on your relationship first. When children grow up in a loving environment, they feel loved and are able to trust their parents. Work on building that trust with her where she feels safe to share things with you and her father...
It comes right back to the two of you as parents...
About his financial issues, I cannot suggest what he can do or not...but you can certainly talk to him about how it has begun to eat into your savings and how much it is bothering you. Hopefully when the two of you work on your relationship, he will be in a place where he will hear you out better.

All the best!
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Ramalingam

Ramalingam Kalirajan  |7557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 19, 2025Hindi
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Hello Sir I am at 49 and would like to retire at 52 . Need your opinion for better quality life till 75 year atleast . SIP approx 40k per month My monthly expenses approx - 50-60k Normal living ,spend 1-2 lacs on travels on tourism every year . My assets and liabilities as below Assets - As on date Cash - 2.25 cr Pf and gratuity- 1.5 cr Pension funds - 80 lacs approx Own house Liability - Daughter studing graduation ( 1.5 lacs per annum ) Son at class 10th . Would like to pursue engineering . Marriages for Son and daughter . Kindly guide ..
Ans: Retiring at 52 and ensuring a comfortable life until 75 is achievable with focused financial planning. Here’s a comprehensive plan tailored to your goals.

Current Financial Situation
Assets
Cash Savings: Rs. 2.25 crore

PF and Gratuity: Rs. 1.5 crore

Pension Funds: Rs. 80 lakh

Own House: Secure asset, no housing liability

Liabilities
Children’s Education: Rs. 1.5 lakh per annum for your daughter’s graduation; son’s engineering yet to begin

Marriages: Undefined costs; planning for two weddings

Lifestyle Expenses
Monthly Expenses: Rs. 50,000 to Rs. 60,000

Travel Budget: Rs. 1 lakh to Rs. 2 lakh annually

Recommendations for Retirement Planning
Goal Assessment
Maintain monthly expenses of Rs. 60,000 until age 75.

Budget for Rs. 20 lakh each for children’s weddings.

Allocate Rs. 1.5 lakh annually for children’s education.

Retirement Corpus Requirement
You need a retirement fund generating Rs. 60,000 monthly.

Factor in inflation, healthcare, and lifestyle upgrades.

A well-diversified portfolio will sustain these requirements.

Investment Strategy
Systematic Investment Plan (SIP)
Continue Rs. 40,000 SIP monthly for the next three years.

Allocate SIPs across equity funds for growth and debt funds for stability.

Asset Reallocation
Cash Reserves: Set aside Rs. 1 crore in debt mutual funds.

Equity Allocation: Invest Rs. 80 lakh from pension funds in equity mutual funds.

PF and Gratuity: Keep Rs. 1.5 crore intact for long-term use.

Emergency Fund: Maintain Rs. 20 lakh in a liquid fund.

Children’s Education and Marriage
Education Planning
Allocate Rs. 10 lakh for daughter’s remaining education.

Start investing Rs. 20,000 monthly in balanced advantage funds for son’s education.

Marriage Planning
Invest Rs. 10 lakh each in hybrid mutual funds for weddings.

Target 7–8% annual returns with moderate risk.

Travel and Lifestyle
Annual Travel Budget
Invest Rs. 10 lakh in a short-term debt fund.

Withdraw from this fund annually to support travel plans.

Lifestyle Upgrades
Allocate Rs. 5 lakh for one-time home or lifestyle improvements.
Insurance Planning
Life Insurance
Review your term insurance coverage of Rs. 50 lakh.

Consider increasing coverage to Rs. 1 crore until 65.

Health Insurance
Ensure family coverage of at least Rs. 20 lakh.

Upgrade health insurance policies if needed.

Tax Optimisation
ELSS for Tax Savings
Invest in ELSS funds under Section 80C.

Target Rs. 1.5 lakh annual deduction for tax benefits.

Mutual Fund Taxation
Equity fund LTCG above Rs. 1.25 lakh taxed at 12.5%.

Debt fund LTCG taxed as per your income slab.

Additional Recommendations
Emergency Planning
Keep Rs. 20 lakh in fixed deposits or liquid funds.

Ensure accessibility during health or family emergencies.

Contingency Fund
Create a Rs. 10 lakh contingency fund for unplanned expenses.
Periodic Review
Review financial plans annually with a Certified Financial Planner.

Adjust investments as per changing family needs.

Finally
Retirement at 52 with a secure future is realistic with disciplined investments.

Focus on balancing lifestyle, children’s needs, and wealth creation.

Reassess your plan every year to stay aligned with goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 19, 2025Hindi
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I am 49 year old with 1 daughter 16y and wife family. My daughter is studying 11th std. she want go for CS engg. after 12th. I have currently 32 L PPF. term plan 50L. some FD of about 3L My current salary is 75K/month and monthly expenditure is about 30K I have following Mutual fund. 1. parag parikh flexi cap fund 5000/- 2. CR blue cheap fund 5000/- 3. PGIM midcap fund 5000/- 4. Quant small cap fund 5000/- 5. Mirac asste ELSS fund 5000/- I want to increase ELSS fund for tax rebate benefit. Upto this year i invest in PPF 12.5K every month. i want minimize the amount in PPF and increase amount in ELSS fund. I require corpus of 2L each year for next 4 year for daughter education in next to next year. Also i want to generate about 1 cr for my daughter marriage and after retirement life. Kindly provide some suggestion.
Ans: Your financial situation shows a commendable focus on disciplined savings and investments. Below is a 360-degree plan to meet your daughter’s education, marriage, and retirement needs effectively.

Current Financial Snapshot
Key Highlights
PPF Balance: Rs. 32 lakh

Term Insurance: Rs. 50 lakh (adequate for current needs)

FD Balance: Rs. 3 lakh

Mutual Fund SIPs: Rs. 25,000 monthly across diversified categories

Salary: Rs. 75,000 monthly

Monthly Expenses: Rs. 30,000

Observations
Your existing investments are diversified and balanced.

Current SIPs are aligned with long-term wealth creation.

PPF allocation is high and could be moderated.

ELSS investment can help optimise tax savings further.

Recommendations to Meet Education Needs
Target Amount
You require Rs. 2 lakh yearly for the next four years.
Strategy
Allocate the FD balance of Rs. 3 lakh towards education.

Redirect Rs. 5,000 monthly from PPF to a short-term debt mutual fund.

Debt mutual funds provide stable returns and liquidity.

Additional Tips
Keep funds easily accessible to avoid breaking long-term investments.

Plan withdrawals from PPF strategically to preserve its tax-free benefits.

Building Rs. 1 Crore for Marriage and Retirement
Marriage Corpus
Set a target to accumulate Rs. 50 lakh in 15 years.
Retirement Corpus
Aim for an additional Rs. 50 lakh over 15-20 years.
Asset Allocation
Equity Mutual Funds: Allocate 60% for long-term growth.

Debt Mutual Funds: Allocate 30% for stability and diversification.

ELSS Funds: Increase contribution to Rs. 10,000 monthly.

Fund Allocation
Keep existing SIPs in flexi-cap, mid-cap, small-cap, and ELSS funds.

Consider adding a balanced advantage fund for dynamic equity-debt allocation.

Redirect Rs. 7,500 monthly from PPF to new ELSS and debt funds.

Tax Efficiency
ELSS investments offer up to Rs. 1.5 lakh deduction under Section 80C.

For equity funds, LTCG above Rs. 1.25 lakh is taxed at 12.5%.

Debt funds are taxed based on your income tax slab.

Optimising PPF Contributions
Reduce PPF Contributions
Reduce monthly PPF contributions to Rs. 5,000.

Use the freed amount for ELSS and short-term goals.

Plan Withdrawals
PPF allows partial withdrawals after 7 years.

Use this option for education expenses, if needed.

Insurance Evaluation
Term Insurance
Rs. 50 lakh is sufficient currently.

Reassess coverage every five years.

Health Insurance
Ensure adequate health insurance for your family.

Minimum Rs. 10 lakh coverage is recommended for unforeseen medical needs.

Emergency Fund Planning
Current Status
Rs. 3 lakh FD serves as an emergency fund.
Recommendation
Maintain six months’ expenses (around Rs. 1.8 lakh) as liquid reserves.

Move any excess FD amount to a debt mutual fund.

Investment Discipline
Automate Investments
Continue with systematic investment plans (SIPs).

Increase SIP amounts annually with salary hikes.

Avoid Emotional Decisions
Stick to planned investments during market fluctuations.

Focus on long-term goals and avoid frequent withdrawals.

Final Insights
Your financial planning is on the right track with a disciplined approach.

Balancing education, marriage, and retirement goals is achievable with focused investments.

Reallocate funds strategically to optimise returns and tax benefits.

A Certified Financial Planner can guide you further in portfolio optimisation.

Stay consistent and reassess your plan annually.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

Asked by Anonymous - Jan 19, 2025Hindi
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Money
What should I do when I have to much loan. At the moment am not working.
Ans: Having too much loan and no current income is challenging but not unmanageable. By following a structured approach, you can regain financial stability. Below is a detailed step-by-step plan to address this situation.

Assess Your Loan Situation
List All Loans
Write down all loans with outstanding amounts.

Include home loans, personal loans, car loans, and credit card debts.

Note the interest rates and EMI amounts for each loan.

Prioritise Debts
Prioritise high-interest loans like credit card debts and personal loans.

Low-interest loans can be managed later.

Check Loan Tenure
Understand the remaining tenure of each loan.

This will help in planning repayments effectively.

Create a Temporary Budget
Analyse Monthly Expenses
List essential expenses like food, utilities, and rent.

Avoid unnecessary spending like dining out or online shopping.

Cut Costs
Reduce discretionary expenses to free up cash flow.

Look for cheaper alternatives in daily living.

Allocate for Loan Repayment
Use any available funds to cover immediate EMIs.

Ensure timely payments to avoid penalties.

Explore Alternative Income Sources
Leverage Skills
Identify skills that can help you earn part-time income.

Freelancing, tutoring, or consulting can bring immediate cash flow.

Sell Unused Assets
Sell assets like gold, gadgets, or a second vehicle.

Use the proceeds to repay high-interest loans.

Liquidate Non-Essential Investments
Check for liquid investments like FDs or mutual funds.

Use these funds to reduce your debt burden.

Restructure Loans
Request Loan Moratorium
Approach your bank for a temporary moratorium on EMIs.

This provides breathing space for a few months.

Consolidate Loans
Combine high-interest loans into a single low-interest loan.

This simplifies repayment and reduces monthly outflows.

Extend Loan Tenure
Request lenders to increase the loan tenure.

This lowers EMIs but increases total interest.

Negotiate with Lenders
Request Reduced EMIs
Speak with lenders about lowering EMI amounts temporarily.

They may agree based on your repayment history.

Waive Penalties
Request lenders to waive penalties for delayed payments.

Many lenders are flexible during financial hardships.

Avoid Common Mistakes
Do Not Ignore Payments
Skipping payments will increase penalties and impact your credit score.
Avoid New Loans
Do not take additional loans to repay existing ones.

This creates a debt trap.

Avoid Loan Sharks
Do not borrow from informal sources with exorbitant interest rates.
Seek Professional Guidance
Certified Financial Planner Support
Work with a Certified Financial Planner to create a structured debt repayment plan.

They will help you balance short-term and long-term needs.

Debt Counsellors
Consider debt counselling services for expert negotiation with lenders.

They provide tailored solutions to manage your debt.

Emergency Measures
Borrow from Family or Friends
Request a short-term loan from family or friends without interest.

Use this only as a last resort and repay promptly.

Tap into Savings
Use savings cautiously for essential loan repayments.

Do not exhaust emergency funds completely.

Final Insights
Managing high loans without income requires careful planning and action.

Prioritise high-interest loans and negotiate with lenders for relief.

Explore alternative income sources to create cash flow.

A Certified Financial Planner can help you achieve long-term stability.

Stay disciplined, and avoid impulsive financial decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 20, 2025

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Hi, with continuation to my earlier question, I want to invest Rs 20.00 Lakh lump sum in MF for asset creation for a period of 10 years. Please suggest balanced allocation of funds in different categories to maximise returns and minimise risks.
Ans: Investing Rs 20 lakh in mutual funds is a great decision. With proper allocation, you can achieve growth while managing risks. A diversified approach is essential for consistent returns. Below is a detailed plan tailored to your objective.

Factors to Consider Before Investing
Investment Horizon
A 10-year period allows you to take moderate risks for higher returns.

Longer durations smooth out market fluctuations, especially in equity investments.

Risk Appetite
Moderate risk appetite suits balanced allocation strategies.

Equities provide growth, while debt funds ensure stability.

Tax Implications
Equity mutual funds offer tax benefits for long-term investments.

Be mindful of LTCG and STCG tax rules for equities and debt funds.

Suggested Allocation Categories
Equity-Oriented Funds
Allocate 60% (Rs 12 lakh) to equity funds for higher growth potential.

Include large-cap funds for stability and consistent returns.

Add mid-cap funds for higher growth opportunities over 10 years.

Include flexi-cap funds for diversification across market capitalisations.

Debt-Oriented Funds
Allocate 25% (Rs 5 lakh) to debt funds for portfolio stability.

Choose short-term debt funds for better liquidity and lower risk.

Consider corporate bond funds with high credit ratings for steady returns.

Hybrid Funds
Allocate 10% (Rs 2 lakh) to balanced advantage funds.

These dynamically adjust equity and debt exposure based on market conditions.

They reduce risks and provide moderate growth.

Liquid Funds
Allocate 5% (Rs 1 lakh) to liquid funds for emergencies or short-term needs.

These funds provide quick access to money and minimise risk.

Importance of Fund Selection
Actively Managed Funds
Actively managed funds outperform index funds in volatile markets.

Professional fund managers optimise returns with research-based decisions.

Regular vs Direct Funds
Choose regular plans with a Certified Financial Planner for expert guidance.

Regular plans ensure you receive support for goal tracking and portfolio reviews.

Advantages of This Allocation
Equity funds offer inflation-beating returns over the long term.

Debt funds balance risks and ensure capital protection.

Hybrid funds provide a buffer during market corrections.

Liquid funds offer flexibility for immediate requirements.

Risk Mitigation Strategies
Systematic Transfer Plan (STP)
Invest the lump sum into liquid funds initially.

Use STP to gradually transfer funds into equity and hybrid funds.

This reduces risks associated with market volatility.

Periodic Reviews
Review your portfolio every 6-12 months.

Rebalance based on market conditions and fund performance.

Emergency Fund
Keep at least 6-12 months of expenses in liquid or low-risk instruments.

This ensures financial stability during unforeseen events.

Maximising Tax Efficiency
Equity Funds
Keep equity LTCG within Rs 1.25 lakh annually to save tax.

Opt for long-term holding to benefit from lower tax rates.

Debt Funds
Select debt funds with optimal maturity to minimise tax liabilities.

Choose funds that align with your income tax slab for better efficiency.

Final Insights
Investing Rs 20 lakh wisely can create significant wealth in 10 years.

A balanced allocation ensures growth while managing risks.

Follow a disciplined approach and review your portfolio regularly.

Work with a Certified Financial Planner to align investments with your goals.

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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