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Sunil Lala  |193 Answers  |Ask -

Financial Planner - Answered on Apr 10, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
JITENDRA Question by JITENDRA on Mar 28, 2024Hindi

How much % of the salary to be paid as EMI for Home Loan and How much % to be Invested in Mutual Funds , Gold Bonds and Immovable Properties as Investment.? Pl advise

Ans: Depends on your expenses also
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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Ramalingam Kalirajan  |4605 Answers  |Ask -

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

Mera monthly income 87000 hai maine 35 lac ka home loan liya hai 7% ki dar se liya tha ab 9% ho gaya hai.monthly emi 31041 katata hai.20 sal ke liye hai lic se.mai jyada amount jama keru ya kahi invest Karu plz sujhaw de
Ans: Given your situation, it's crucial to strike a balance between repaying your home loan and investing for the future. Here are some suggestions:

1. Evaluate your financial goals: Determine your short-term and long-term financial goals, such as retirement planning, children's education, and emergency funds.
2. Assess your risk tolerance: Consider your risk tolerance before making any investment decisions. Evaluate whether you're comfortable with taking on additional risk for potentially higher returns.
3. Review your home loan: With the increase in interest rates, consider refinancing your home loan to secure a lower interest rate, which could reduce your monthly EMI burden.
4. Build an emergency fund: Ensure you have a sufficient emergency fund to cover unexpected expenses, typically three to six months' worth of living expenses.
5. Consider investing: If you have surplus funds after meeting your expenses and building an emergency fund, consider investing in diversified assets like mutual funds, stocks, or fixed-income instruments. These investments have the potential to generate higher returns over the long term.
6. Consult a financial advisor: It's advisable to seek guidance from a certified financial planner (CFP) who can assess your financial situation holistically and provide personalized advice based on your goals, risk tolerance, and investment horizon.
7. Prioritize debt repayment: While investing is essential, prioritize repaying high-cost debt like your home loan. Consider making partial prepayments towards your loan to reduce the interest burden and shorten the loan tenure.
8. Regularly review your finances: Keep track of your income, expenses, investments, and debt obligations regularly. Periodically review your financial plan to ensure it aligns with your evolving goals and circumstances.
Remember, financial planning is a dynamic process that requires regular monitoring and adjustments. By making informed decisions and seeking professional advice, you can work towards achieving your financial objectives.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,

..Read more


Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

I m 42 years old and took home loan of Rs. 58 lakh for 25 years with EMI of Rs. 47300p.m. my monthly income is 1.30 lakh. I can save Rs. 10-15000 pm. Please suggest me this saving amount 10-15000 should invest or deposit in home loan account.
Ans: It's commendable that you're looking to make the most of your savings to optimize your financial situation. Here are some considerations for your decision:

• Emergency Fund: Before deciding whether to invest or pay off your home loan, ensure you have an emergency fund set aside. This fund should cover at least 3-6 months' worth of living expenses to provide a financial buffer in case of unexpected events.

• Interest Rate on Home Loan: Evaluate the interest rate on your home loan. If the interest rate is relatively low compared to potential investment returns, it might make sense to invest your savings in avenues that offer higher returns.

• Investment Options: Explore investment options that align with your financial goals, risk tolerance, and investment horizon. Consider investing in mutual funds, SIPs, or other diversified investment vehicles that have the potential to generate higher returns over the long term.

• Loan Repayment: On the other hand, reducing your home loan principal by making additional payments can help you save on interest payments over the long term. It also brings you closer to becoming debt-free and owning your home outright, providing financial security and peace of mind.

• Balancing Act: You can strike a balance between investing and repaying your home loan. Allocate a portion of your savings towards investments to grow your wealth while directing the remaining amount towards making extra payments on your home loan principal.

• Consultation: Consider consulting with a Certified Financial Planner (CFP) to assess your overall financial situation and determine the best course of action based on your individual circumstances, financial goals, and risk appetite.

Ultimately, the decision to invest or pay off your home loan depends on various factors such as interest rates, investment returns, and personal financial goals. By carefully weighing your options and seeking professional advice, you can make informed decisions to optimize your financial well-being.

..Read more


Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 27, 2024

Hello sir, My intake salary is 49 k per month and my EMI is 7300 of card loan and 5000 k invested in mutual fund 2 k in SBI conservative fund 1 k each in hdfc mid and large cap fund, hdfc mid cap opportunities and hdfc flexi cap fund ... Please help I need to invest more and currently I am 36
Ans: Managing Your Investments and Budget: A Comprehensive Guide

Understanding Your Current Financial Situation
It's great that you are already investing in mutual funds. At 36, you have a significant time horizon for investments. Your monthly intake salary is Rs 49,000, with an EMI of Rs 7,300.

Reviewing Your Existing Investments
Mutual Fund Investments
You invest Rs 5,000 monthly in mutual funds. Your portfolio includes a conservative fund and various equity funds. This shows a balanced approach towards risk and growth.

Evaluating Your Debt Obligations
Your EMI for a card loan is Rs 7,300. Managing debt effectively is crucial to avoid financial strain. Prioritizing debt repayment can free up more funds for investment.

Analyzing Your Investment Portfolio
Conservative Fund
You invest Rs 2,000 in a conservative fund. These funds offer stability and lower risk, suitable for conservative investors. They provide steady returns with minimal risk.

Mid and Large Cap Funds
You invest Rs 1,000 each in mid and large cap funds. Mid cap funds offer high growth potential, though with higher risk. Large cap funds provide stability through investments in well-established companies.

Flexi Cap Fund
You also invest Rs 1,000 in a flexi cap fund. Flexi cap funds offer flexibility to invest across market capitalizations. They adapt to market conditions, balancing growth and stability.

Recommendations for Increasing Investments
Assessing Disposable Income
After EMIs and existing investments, assess your disposable income. Allocating additional funds towards investments can enhance your financial growth. Creating a budget helps in identifying areas to save more.

Increasing SIP Contributions
Consider increasing your SIP contributions in existing funds. This enhances your investment in a disciplined manner. Regular investments through SIPs benefit from rupee cost averaging.

Diversifying Portfolio
Diversifying your portfolio reduces risk and optimizes returns. Consider adding debt funds or balanced funds for stability. Diversification ensures a balanced risk-return profile.

Importance of Actively Managed Funds
Benefits Over Index Funds
Actively managed funds aim to outperform market indices through expert management. They adapt to market changes, potentially providing higher returns. Index funds, on the other hand, only match market performance.

Professional Management
Actively managed funds are overseen by professional fund managers. They make strategic investment decisions based on research and analysis. This expertise can lead to better returns compared to passive funds.

Investing Through Regular Funds
Advantages of Regular Funds
Investing through regular funds with a Certified Financial Planner (CFP) ensures expert advice. CFPs tailor investments to your financial goals and risk tolerance. This professional guidance is invaluable for effective financial planning.

Disadvantages of Direct Funds
Direct funds lack professional guidance, making investment decisions more challenging. Regular funds offer the benefit of expert advice, optimizing your investment strategy. This can be particularly beneficial for achieving long-term financial goals.

Periodic Portfolio Review
Importance of Regular Review
Regularly reviewing your investment portfolio ensures alignment with financial goals. Market conditions and personal circumstances change over time. Periodic reviews help in making necessary adjustments to your portfolio.

Rebalancing Investments
Rebalancing your portfolio maintains the desired asset allocation. It ensures that your investments remain aligned with your risk tolerance and financial goals. Regular rebalancing optimizes your portfolio performance.

Emergency Fund Consideration
Building an Emergency Fund
Ensure you have an adequate emergency fund before increasing investments. This fund should cover at least six months of living expenses. It provides financial security and prevents the need to liquidate investments prematurely.

Evaluating Tax Implications
Understanding Tax Benefits
Understanding tax implications of investments is crucial for maximizing returns. Certain funds offer tax benefits which can enhance post-tax returns. Consulting a tax expert or CFP can help optimize your investment strategy.

Your current investment strategy shows a good mix of growth and stability. Increasing your SIP contributions and diversifying your portfolio can further enhance your financial growth. Regular reviews and professional guidance will ensure your investments align with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |4605 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Hellopus I am 40 year old married female and have a 1.5 year old daughter. Currently I am drawing 1.13 lakhs monthly. I have 28 lakhs in mutual funds, 10 lakhs in ppf, 26 lakhs in epf, 25 lakhs gold,20 lakhs in lic, 2 lakhs in fd, I am investing 60000 per month in various saving schemes. Now I intend to buy a property worth 1.30 crore. Shall I wait or invest. Am I in a position where I can pay monthly emi of 75000 for next 30 years.
Ans: You've built a strong financial foundation with your savings and investments. This is impressive, considering your current financial obligations and future goals. Let's take a detailed look at your situation and assess whether you should buy the property now or wait.

You earn Rs 1.13 lakhs monthly, and have substantial investments:

Rs 28 lakhs in mutual funds.
Rs 10 lakhs in PPF.
Rs 26 lakhs in EPF.
Rs 25 lakhs in gold.
Rs 20 lakhs in LIC.
Rs 2 lakhs in FD.
You also invest Rs 60,000 per month in various saving schemes.

Monthly EMI and Financial Stability
Purchasing a property worth Rs 1.30 crore will require a significant monthly EMI. If we assume an EMI of Rs 75,000 for 30 years, let's evaluate if this fits into your current financial structure.

Income and Expenses:
Your monthly income is Rs 1.13 lakhs. Deducting Rs 75,000 for EMI, you’ll have Rs 38,000 left for other expenses and investments.

Understanding Your Expenses
Your current monthly investments total Rs 60,000. After accounting for the EMI, it’s essential to ensure your remaining income covers your living expenses, savings, and unexpected costs.

Emergency Fund
An emergency fund is vital. Ideally, you should have 6-12 months of expenses saved. With Rs 2 lakhs in FD, consider increasing this fund to cover unforeseen expenses. This ensures financial stability without disrupting your EMI payments.

Assessing Investment Allocation
Mutual Funds:
You have Rs 28 lakhs in mutual funds. Mutual funds are versatile and offer potential growth. Ensure your portfolio is diversified across equity, debt, and hybrid funds to balance risk and return.

PPF and EPF:
Your PPF and EPF balances are Rs 10 lakhs and Rs 26 lakhs respectively. These are safe, long-term investments providing assured returns. They are also excellent for retirement planning.

Gold worth Rs 25 lakhs adds stability and acts as a hedge against inflation. However, its returns are generally lower compared to other investment options.

With Rs 20 lakhs in LIC policies, evaluate the performance and returns. If these are investment-cum-insurance policies, consider surrendering and reinvesting the amount in mutual funds for better growth.

Your Rs 2 lakhs in FD is a good start for an emergency fund. Ensure you have sufficient liquidity for emergencies.

Cash Flow and Loan Eligibility
Given your current financial commitments, paying a Rs 75,000 EMI might strain your cash flow. It's crucial to maintain a balance between your loan repayments and daily living expenses.

Impact on Lifestyle
Evaluate how a high EMI impacts your lifestyle. You must comfortably manage your expenses, investments, and future needs without financial stress.

Benefits of Waiting
Waiting to buy the property can provide several benefits:

Increased Savings: Allow more time to save, reducing loan amount and interest paid.
Market Conditions: Property prices may stabilize or fall, offering better deals.
Financial Cushion: Build a stronger financial cushion, reducing the burden of EMI.
Power of Compounding in Mutual Funds
Investing consistently in mutual funds harnesses the power of compounding. Over time, even small investments can grow significantly. This can enhance your financial stability and provide substantial returns.

Diversification and Risk Management
Diversifying your investments across different mutual funds reduces risk. Balancing between equity, debt, and hybrid funds helps manage market volatility and provides steady returns.

Mutual Fund Categories
Equity Funds: High risk, high reward. Suitable for long-term growth.
Debt Funds: Lower risk, stable returns. Ideal for short to medium-term goals.
Hybrid Funds: Mix of equity and debt. Balanced risk and return.

Advantages of Mutual Funds
Professional Management: Managed by experts, providing better growth opportunities.
Liquidity: Easy to buy and sell, offering flexibility.
Diversification: Reduces risk by investing in a variety of assets.
Tax Benefits: Certain funds offer tax advantages under sections like 80C.
Potential Risks
Market Volatility: Equity funds are subject to market fluctuations.
Credit Risk: Debt funds carry the risk of issuer default.
Interest Rate Risk: Affects bond prices and, consequently, debt funds.
Reassessing LIC Policies
Evaluate your LIC policies. If they are investment-cum-insurance, consider surrendering them. The amount can be reinvested in mutual funds for better returns and flexibility.

Future Goals and Planning
Your financial planning should align with future goals like your daughter’s education and marriage. Ensure your investments are structured to meet these goals without straining your current finances.

Creating a Balanced Portfolio
Your portfolio should balance risk and reward. A mix of equity, debt, and hybrid funds provides growth and stability. Regularly review and adjust your portfolio to align with your goals and market conditions.

Certified Financial Planner
Engage with a Certified Financial Planner to tailor a financial strategy. They provide personalized advice, ensuring your investments align with your goals and risk tolerance.

Final Insights
Buying a property is a significant decision. Evaluate your financial stability, future goals, and current commitments before proceeding. Ensure you maintain a balance between loan repayments and living expenses. Waiting might provide better financial security and opportunities.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

Latest Questions

Maxim Emmanuel  |288 Answers  |Ask -

Soft Skills Trainer - Answered on Jul 12, 2024

Asked by Anonymous - Apr 23, 2024Hindi
Hello sir my name is Santu Chakraborty.I am 34 year old now unmarried. My qualification is Bsc botany honours with 2nd class +diploma in mechanical engineering with distinction +btech in mechanical engineering from government engineering college west Bengal with 7.5 dgpa.I have 6 years of teaching experience in private diploma engineering college and now I working as a vocational teacher in automobile engineering department in gov high school.In my early phase of life I am going through lots of Misguide,seveare Anxiety issue. Nobody can help me on that phase.I recover mostly by my own after various dillema.I want to work in mechanical r and d company, Mechanical design basis company and also upgrade my teaching carrier. How can I start my journey at this age ?what is the risk factor also? Please tell me. I am very enthusiastic dedicated person. I have no guide in my home. My father is vegetable seller.
Ans: Hi Santu Chakraborty,

This is a really exhaustive query.

The journey thru' your acquisition of qualifications has been vast!

In the course of your life you are now suffering from SNIOP (SUSCEPTIBLE NEGATIVE INFLUENCE OTHER PEOPLE) this happens when you let others control your life.

I have this poem.. Especially for one's like you!

The Guy in the Glass

When you get what you want in your struggle for pelf,
And the world makes you King for a day,
Then go to the mirror and look at yourself,
And see what that guy has to say.
For it isn't your Father, or Mother, or Wife,
Who judgement upon you must pass.
The feller whose verdict counts most in your life
Is the guy staring back from the glass.
He's the feller to please, never mind all the rest,
For he's with you clear up to the end,
And you've passed your most dangerous, difficult test
If the guy in the glass is your friend.
You may be like Jack Horner and "chisel" a plum,
And think you're a wonderful guy,
But the man in the glass says you're only a bum
If you can't look him straight in the eye.
You can fool the whole world down the pathway of years,
And get pats on the back as you pass,
But your final reward will be heartaches and tears
If you've cheated the guy in the glass.

Dale Wimbrow (c) 1934

Get the enthusiasm going, don't get embroiled in what life has been before!

Take a stranglehold of your life and make it BIG!

The opportunities are.. Miracles waiting to happen, what are you waiting for.. You are the catalyst!?
Maxim Emmanuel.

Pick up yourself don't be a victim of self pity.

If you do need further professional advice happy to assist

...Read more

Nayagam P

Nayagam P P  |1830 Answers  |Ask -

Career Counsellor - Answered on Jul 12, 2024

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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