I am holdingb 5000 share of PPL pharma at average ptrice of 124. What should i do. Now quoting at 79/-

Ans: Good evening, Venkatesh!

Thank you for reaching out and considering our services for your financial planning needs. Planning for retirement is a significant milestone, and it's wise to seek professional guidance to ensure a secure future.

I appreciate your interest in discussing your investment plans and retirement goals. To provide you with the best assistance, please visit our website and fill out the contact form. Our team will reach out to you promptly to schedule a consultation and discuss your financial objectives in detail.

Retirement planning requires careful consideration of various factors, including your current financial situation, retirement lifestyle aspirations, and risk tolerance. Our Certified Financial Planners are here to offer personalized advice tailored to your needs and help you make informed decisions to achieve your retirement goals.

Looking forward to assisting you on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's evident that you've been diligent in your savings and investments, which is commendable. Your portfolio reflects a balanced mix of traditional and market-linked instruments, providing stability and growth potential.

Given your age and financial goals, here are some suggestions to optimize your savings and portfolio:

PPF and PF: With a substantial amount in PPF and PF, you're already on track for long-term savings. Since both these instruments offer tax benefits and stable returns, continue contributing to them regularly to maximize their growth potential.

NPS: It's great that you've initiated investments in the National Pension System (NPS). NPS offers a combination of equity, corporate bonds, and government securities, providing diversification to your portfolio. Consider increasing your contributions gradually to build a robust retirement corpus.

FD: While Fixed Deposits provide safety and guaranteed returns, the interest rates may not always beat inflation, leading to erosion of purchasing power over time. Evaluate whether you can allocate a portion of your FD corpus to more growth-oriented instruments like mutual funds for better returns in the long run.

SIPs: Your SIP investments of ?45,000 per month show a commitment to wealth accumulation through equity mutual funds. Increasing the SIP amount gradually to ?1 lakh per month over the next seven years aligns with your goal of enhancing wealth creation. Ensure that you review and adjust your SIPs periodically based on market conditions and your financial goals.

Portfolio Rebalancing: Regularly review your portfolio to ensure it remains aligned with your risk tolerance and financial objectives. Consider rebalancing your portfolio periodically to maintain the desired asset allocation mix and optimize returns.

Emergency Fund: It's essential to have an emergency fund equivalent to 6-12 months of living expenses in a liquid and easily accessible account. If you haven't already, consider setting aside a portion of your savings for this purpose to handle unforeseen expenses without disrupting your long-term investments.

Overall, your savings and investment approach indicate a disciplined approach towards financial planning. By making gradual adjustments and staying committed to your financial goals, you're well-positioned to achieve financial security and prosperity in the years ahead.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's wonderful to hear that you're committed to investing at such a young age. Starting early is a commendable move towards securing your financial future.

Your SIP strategy of investing ?2500 in a small-cap fund and ?2000 in a contra fund reflects a balanced approach to wealth accumulation. Small-cap funds typically offer high growth potential, albeit with higher volatility, while contra funds aim to pick undervalued stocks for long-term growth.

Over a decade, your investments could potentially grow significantly due to the power of compounding. However, predicting the exact amount after ten years is challenging due to market fluctuations and fund performance variations.

With small-cap funds, you're positioned to benefit from the growth potential of smaller companies, which can lead to substantial returns over the long term. However, it's important to note that small-cap investments come with higher risk due to their susceptibility to market volatility and economic downturns.

Contra funds, on the other hand, aim to identify stocks that are trading below their intrinsic value, potentially offering higher returns when these stocks revert to their fair value. However, they also carry risk, as the timing of the market's recognition of undervalued stocks can vary.

As a Certified Financial Planner, I advise reviewing your investment strategy periodically to ensure it aligns with your financial goals and risk tolerance. Additionally, diversifying your portfolio beyond just small-cap and contra funds could further mitigate risk and enhance returns.

In conclusion, while it's challenging to predict the exact amount you'll receive after ten years, your disciplined approach to SIP investing sets a strong foundation for building wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I can offer general guidance to help you find health insurance as someone with pre-existing conditions.

In India, several companies offer health insurance plans for individuals with pre-existing conditions like cerebral palsy and asthma. Here are some steps to find suitable coverage:

Research Companies: Consider reputable health insurance companies in India known for offering plans to people with pre-existing conditions. You can search online or consult an insurance broker for recommendations.

Contact Insurance Companies: Reach out to shortlisted companies and inquire about their plans for pre-existing conditions. Ask about coverage details, exclusions, and claim settlement procedures.

Compare Plans: Carefully compare plans from different insurers. Consider factors like coverage details, deductibles, co-pays, network hospitals, and premium costs.

Here are some resources that might be helpful in your research (avoiding mentioning specific companies):

Regulatory Body: Insurance Regulatory and Development Authority of India
Health Insurance Information: General Insurance Council [invalid URL removed]
Additional Tips:

Be upfront about your pre-existing conditions when contacting insurance companies.
Inquire about waiting periods for specific treatments or procedures.
Understand the claim process and required documentation.
Remember, consulting a qualified insurance broker can be helpful, especially when navigating plans with pre-existing conditions. They can assist you in comparing plans, understanding coverage details, and finding the most suitable option for your needs.

For personalized advice tailored to your specific situation, consider consulting with a Certified Financial Planner or tax advisor.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: In India, the co-planner can claim a tax deduction for the health insurance premium of a family floater health policy, but with limitations.

The deduction is allowed under Section 80D of the Income Tax Act. This section allows for deductions for the premium paid for health insurance for self, spouse, dependent parents, and dependent children.

Here's a breakdown of who can be covered under the co-planner's deduction:

Self: The co-planner can claim a deduction for the portion of the premium that covers themself.
Spouse: The co-planner can claim a deduction for the portion of the premium that covers their spouse.
Dependent children: The co-planner can claim a deduction for the portion of the premium that covers their dependent children.
However, there is no provision to claim tax deductions for other family members covered under the family floater policy, such as in-laws, grandchildren, or siblings.

For personalized advice tailored to your specific situation, consider consulting with a Certified Financial Planner or tax advisor.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: It's great that you're considering a health insurance plan to secure your family's well-being. When selecting a health insurance plan, several factors come into play, including coverage, premiums, network hospitals, and additional benefits. Here are some tips to help you choose the best one:

Assess your family's healthcare needs: Consider factors like existing medical conditions, expected healthcare expenses, and any specific requirements related to treatments or procedures.

Comprehensive coverage: Look for a health insurance plan that offers comprehensive coverage for a wide range of medical expenses, including hospitalization, daycare procedures, pre and post-hospitalization expenses, and critical illnesses.

Network hospitals: Check the list of network hospitals associated with the insurance provider to ensure accessibility to quality healthcare facilities in your area.

No claim bonus (NCB) and benefits: Evaluate if the plan offers incentives like no claim bonus for claim-free years, health check-up benefits, and wellness programs to promote preventive healthcare.

Claim settlement ratio: Review the insurer's claim settlement ratio, which reflects their track record of processing and settling claims efficiently.

Affordability: While opting for a comprehensive plan is essential, ensure that the premium fits within your budget and offers value for money in terms of coverage and benefits.

Based on these considerations, you can explore health insurance plans offered by reputed insurers like HDFC ERGO Health, ICICI Lombard, Apollo Munich, or Max Bupa. Compare their features, coverage limits, exclusions, and premiums to select the one that best meets your family's needs.

Before finalizing the plan, read the policy documents carefully, including terms and conditions, exclusions, and claim procedures, to have a clear understanding of what is covered and any limitations.

Additionally, consider consulting with a licensed insurance advisor or Certified Financial Planner to receive personalized recommendations based on your specific requirements and financial situation.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello Mr. Kumar Shashi Raj,

It's excellent that you're considering diversifying your investments and planning for your future. Given your income and investment goals, let's explore some options:

NPS (National Pension System):

NPS offers different investment options with varying levels of risk and potential returns.
For your objective of earning at least 8% with lower risk, you can consider investing in the "Moderate" or "Conservative" asset allocation options.
These options typically invest a higher proportion of funds in debt instruments, providing stability and lower volatility compared to equity-heavy options.
While NPS offers the potential for attractive returns over the long term, it's essential to understand that past performance is not indicative of future results.
Other options for investment with lower risk:

Debt Mutual Funds: These funds primarily invest in fixed-income securities like bonds and government securities, offering relatively stable returns with lower risk compared to equity investments.
Public Provident Fund (PPF): Since you're already investing in PPF, you can continue to maximize contributions to this tax-efficient instrument, which offers attractive returns along with tax benefits.
Bank Fixed Deposits: FDs provide a fixed rate of interest and are considered low-risk investments. However, they may offer relatively lower returns compared to other investment avenues like mutual funds or NPS.
Government Savings Schemes: Options like Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS) offer fixed returns with capital protection, making them suitable for conservative investors.
When selecting investment options, consider factors like your risk tolerance, investment horizon, and financial goals. Diversifying across asset classes can help mitigate risk and optimize returns over the long term.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific financial situation and goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello Mr. Kumar Shashi Raj,

It's great that you're actively planning for your financial future and your children's education. Let's address your concerns step by step:

A. Planning your finances ahead:

With a corpus of 1 crore and diversified investments like MFs, PPF, NSC, stocks, and FDs, you're on the right track.
Consider reviewing your investment portfolio periodically to ensure alignment with your financial goals and risk tolerance.
Continue your SIPs and monitor the performance of your equity investments.
Explore options for retirement planning to secure a steady income post-retirement. You can consider instruments like NPS or annuities for this purpose.
B. Your daughter's education:

Since your daughter aims to pursue medicine, it's crucial to plan for the substantial expenses associated with her education.
Estimate the cost of her medical education and explore education loans, scholarships, or other funding options to supplement your savings.
Consider investing in instruments like mutual funds or fixed deposits specifically earmarked for her education expenses.
C. Medical insurance:

Your existing medical policy covering 26 lakhs for a family of four is a good start.
However, considering rising healthcare costs and the possibility of unforeseen medical emergencies, it's advisable to assess if this coverage is adequate.
Evaluate the premium versus coverage benefits and consider topping up your existing policy or purchasing an additional policy for enhanced coverage.
D. Retirement planning and leading a comfortable life:

Determine your desired post-retirement lifestyle and estimate your retirement expenses, including healthcare, travel, and other essentials.
Calculate the corpus required to generate a steady income stream post-retirement, considering factors like inflation and life expectancy.
Aim to build a retirement corpus that can sustain your lifestyle without relying on your children's financial support.
Maximize contributions to retirement-oriented schemes like NPS or voluntary provident fund to boost your retirement corpus.
Regularly reassess your financial plan and make adjustments as needed to stay on track towards your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello Mr. Kumar Shashi Raj,

I understand the frustration and inconvenience you've faced due to the delay in your credit card payment reflecting on your Axis Bank account. It's indeed disheartening to experience such issues, especially when you've taken timely action to fulfill your financial obligations.

It's essential to determine accountability in situations like these. While Axis Bank has mentioned a downtime issue from SBI, it's crucial to delve deeper into the matter to ascertain where the responsibility lies. Both institutions play integral roles in the transaction process, and pinpointing the exact cause of the failure is essential to seek redressal.

Your proactive approach in raising complaints with both Axis Bank and SBI is commendable. However, if you haven't received satisfactory responses, you may consider escalating the matter further. You can approach the banking ombudsman, a regulatory body established to address grievances related to banking services. They can investigate the issue impartially and facilitate a resolution.

Meanwhile, to mitigate the adverse impact on your financial standing, you can request Axis Bank to waive off the penalty and interest charges, citing the delayed payment due to technical issues beyond your control. Additionally, you may inquire about any measures they can take to rectify the effect on your CIBIL score.

Remember to keep documentation of all communication and transactions related to this issue for future reference.

Stay resilient throughout this process. Justice may take time, but your persistence can lead to a favorable outcome.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in