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Can I Achieve My 2 Crore Goal in 8 Years with My Current Mutual Fund Portfolio?

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 01, 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
PP Question by PP on Oct 18, 2024Hindi
Money

I hv following MF, need your advice on this fund for Long terms: 1. HDFC MNC Fund(From 1.5 Year): 3500/PM 2.Nippon India Consumptions Fund(From 1.5 Year): 3500/PM 3.HDFC Midcap Opportunity Fund(From 12 Year): 3500/PM 4. Nippon Small Cap Fund(From 12 Year): 2500/PM 5.HSBC Value Fund (From 10 Year):3500/PM 6.Axis ELSS Tax Saving Fund(From 10 Year): 2000/PM 7. Quant ELSS Tax Saving Fund(From 2 Year): 5000/PM 8. Mirae Asset Focused Fund(LUM SUM-3 Year): 250000 Want 2 Cr in next 8 Year. Is it possible with this fund or advice how reach my goal.

Ans: To achieve Rs 2 crore in 8 years, a focused approach is essential. Your portfolio includes various funds across different categories, and assessing these for long-term growth is critical. Below is a 360-degree analysis and guidance to enhance your investment strategy.

Portfolio Analysis: Assessing Your Current Holdings
Your current portfolio includes both equity and tax-saving mutual funds. Here’s an assessment of each:

HDFC MNC Fund and Nippon India Consumption Fund: These sector funds target specific themes (MNCs and consumption sectors). While they can provide high growth during favorable market conditions, they are generally riskier as they depend on the performance of specific sectors.

HDFC Midcap Opportunities Fund and Nippon Small Cap Fund: These funds focus on mid- and small-cap stocks, offering high growth potential over the long term. However, they also come with increased volatility. Since you have been invested for a long period (12 years), these funds likely contributed significantly to portfolio growth. Mid- and small-cap allocations should ideally not exceed 40% of your total equity exposure due to volatility.

HSBC Value Fund: This fund adopts a value investment style, focusing on undervalued stocks. Value funds can be less volatile, providing balance in an equity-heavy portfolio.

Axis ELSS and Quant ELSS Funds: These tax-saving funds provide tax benefits under Section 80C. The Quant ELSS Fund has a higher allocation, indicating a more aggressive approach in your tax-saving investments. Consider streamlining your ELSS choices if tax-saving goals are already met, or if tax efficiency could be improved through other avenues.

Mirae Asset Focused Fund (Lump Sum): This concentrated fund style (investing in fewer stocks) suits investors seeking high conviction investments. As a lump-sum investment, it’s well-aligned with your goal but may require periodic review due to the concentration of holdings.

Your funds are relatively diversified. However, to maximize growth potential and stability, adjustments and regular monitoring can help optimize your portfolio.

Expected Growth: Assessing Feasibility for Rs 2 Crore Goal in 8 Years
Achieving Rs 2 crore in 8 years with your current portfolio is challenging but possible with the right adjustments:

Equity-Heavy Strategy: Equity exposure is essential for long-term growth, especially for aggressive goals. Maintaining around 70%-80% in equities is advisable if you can handle market volatility.

Potential Annual Return Range: Aiming for a CAGR (compounded annual growth rate) of 12%-14% is reasonable with a well-balanced portfolio. However, returns are market-dependent and can vary widely.

Recommendations for Portfolio Enhancement
To enhance your chances of achieving the Rs 2 crore target, consider the following strategies:

1. Rebalance Sector Funds
Sector-specific funds like HDFC MNC Fund and Nippon India Consumption Fund are high-risk because they depend on industry performance. You might consider reducing allocation to sector funds and diversifying into flexi-cap funds for broader market exposure.
Flexi-cap funds offer flexibility in asset allocation across large, mid, and small-cap stocks, which can better capture market potential while spreading risk.
2. Evaluate Mid- and Small-Cap Allocations
Small-cap funds like Nippon Small Cap Fund can yield higher returns, but also bring volatility. Ensure that mid- and small-cap exposure stays within your risk tolerance, ideally capping at 40%.
If volatility is a concern, you could reallocate some of the funds towards large-cap or balanced advantage funds, which are more stable and offer moderate growth.
3. Streamline ELSS Holdings
Two tax-saving ELSS funds can be simplified. Retain one based on performance consistency and reduce redundancy. Since ELSS has a 3-year lock-in, evaluate which fund has better performance and aligns with your risk preference.
Redirect the savings from ELSS funds towards diversified equity funds with strong long-term performance for better growth.
4. Regular Funds through Certified Financial Planner
Direct funds come without an advisor’s guidance, potentially limiting personalized insights. Investing in regular plans through a Certified Financial Planner (CFP) can provide professional oversight, fund rebalancing, and tax planning as market conditions change.
CFPs offer active portfolio monitoring, which is essential for high-value goals. They can help you stay on track and make timely adjustments.
5. Actively Managed vs. Index Funds
Index funds simply replicate market indices, which can limit growth potential during volatile times. Actively managed funds allow fund managers to take advantage of market opportunities, providing higher growth prospects.
An actively managed fund, especially through a skilled MFD with CFP credentials, brings expert-driven insights and performance adjustments for changing market conditions.
Tax Efficiency: Plan for Capital Gains
The new taxation rules for capital gains impact mutual fund investments, and optimizing tax efficiency is key:

Equity Mutual Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%, while short-term capital gains (STCG) are taxed at 20%.
Debt Mutual Funds: Both LTCG and STCG are taxed as per your income tax slab.
By leveraging these tax strategies, you can minimize tax outflows, keeping your returns higher.

Regular Portfolio Review
For ambitious goals, regular portfolio review is essential. Ideally, review every 6-12 months to assess performance and realign with market conditions.

Market-Based Adjustments: Economic shifts impact sector-specific funds; hence, adjustments may be needed to maintain a balanced portfolio.
Rebalancing Frequency: Periodically rebalance to ensure you’re on track to achieve the Rs 2 crore target. A Certified Financial Planner can assist with periodic rebalancing and proactive adjustments.
Additional Monthly Contribution
If feasible, consider increasing your monthly contribution for an enhanced growth trajectory. Consistent monthly top-ups can help counter market downturns and accelerate growth.

Emergency Fund and Insurance Check
Ensure that your emergency fund and insurance are well-planned, as these factors are crucial for goal continuity:

Emergency Fund: Maintain an emergency fund worth 6 months of expenses in a low-risk, highly liquid asset.
Insurance: Adequate life and health insurance protect your dependents and investments, helping ensure that your financial goals remain achievable even in emergencies.
Final Insights
Achieving Rs 2 crore in 8 years is possible with disciplined investments, strategic fund choices, and regular monitoring. Rebalancing high-risk funds, optimizing ELSS, and leveraging actively managed funds can give your portfolio the best chance at strong returns. Consistent review and adjustments will help you stay on track toward your ambitious goal.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 2024

Asked by Anonymous - Sep 27, 2023Hindi
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SIR, I am investing 12000/-pm from April 23 , in following MFs. 1.Nippon India small cap @2000/- 2.Axis small cap fund direct growth @1000/- 3.SBI Magnum Mid cap@2000/- 4.Nippon india growth direct fund @1000/- 5.HDFC index S&P BSE sensex direct @2000/- 6.SBI Bluechip direct plan growth @2000/- 7.ICICI prudential bluechip @2000/- Plan for investment is 5 Yrs for a required wealth of 25 Lacs, please advice whether I am on right track.
Ans: Your investment plan seems diversified with allocations across different types of mutual funds, including small-cap, mid-cap, index funds, and large-cap funds. Here are some key points to consider:

Diversification: You have spread your investments across various categories, which can help reduce risk and enhance potential returns over the long term.

Investment Horizon: Investing for a period of 5 years is a good approach, but ensure that your investment horizon aligns with your financial goals. Since equity investments can be volatile in the short term, it's essential to stay invested for the long term to ride out market fluctuations.

Risk Assessment: Small-cap and mid-cap funds tend to be riskier than large-cap and index funds due to their higher volatility. Make sure you are comfortable with the risk level associated with these investments based on your risk tolerance and investment objectives.

Review and Adjust: Regularly review your portfolio's performance and make adjustments if needed. Consider rebalancing your portfolio periodically to maintain your desired asset allocation and risk level.

Professional Advice: If you're uncertain about your investment strategy or need personalized guidance, consider consulting with a financial advisor who can provide tailored recommendations based on your financial situation and goals.

Overall, your investment plan appears to be on the right track, but it's crucial to monitor your investments regularly and stay informed about market developments. Adjust your strategy as needed to stay on course towards achieving your wealth accumulation goal of 25 lakhs in 5 years.

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Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2024

Asked by Anonymous - Jun 21, 2024Hindi
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Dear Sir, I request you to guide me on below MFs investment for long term (25yrs): 1. Large Cap 1.1 Nippon India Large Cap 1.2 ICICI Prudential Bluechip 2. Mid Cap 2.1 Quant Mid Cap Fund 2.2 HDFC Mid Cap Opportunities 3. Small Cap 3.1 Quant Small Cap 3.2 Nippon India Small Cap 4. Multi Cap 4.1 Quant Active Fund 4.2 Nippon India Multi Cap 5. Flexi Cap 5.1 Quant Flexi Cap 5.2 Parag Parikh Flexi Cap Planning to invest between 3K to 5K on monthly basis. Kindly let me know if you have any better MFs in which I can invest. You're guidance will be much helpful for building a long term wealth. Thank you in advance.
Ans: Investing in mutual funds for the long term is a great way to build wealth. You've chosen a diverse mix of funds across various categories. Let’s dive into each category and discuss their potential, as well as some general advice on managing your investments over a 25-year period.

It's great to see you’re taking proactive steps towards securing your financial future. Your detailed plan shows you’ve done your research. Let’s refine it to ensure you’re on the best path.

Understanding Your Current Selections

Large Cap Funds

Nippon India Large Cap Fund
ICICI Prudential Bluechip Fund
Large cap funds are generally safer and provide steady returns. They invest in well-established companies with a large market capitalization.

Mid Cap Funds

Quant Mid Cap Fund
HDFC Mid Cap Opportunities Fund
Mid cap funds have the potential for higher returns than large caps but come with higher risk. They invest in medium-sized companies poised for growth.

Small Cap Funds

Quant Small Cap Fund
Nippon India Small Cap Fund
Small cap funds can offer significant growth but are also more volatile. They invest in smaller companies with high growth potential.

Multi Cap Funds

Quant Active Fund
Nippon India Multi Cap Fund
Multi cap funds invest across large, mid, and small cap stocks, providing diversification and balanced risk.

Flexi Cap Funds

Quant Flexi Cap Fund
Parag Parikh Flexi Cap Fund
Flexi cap funds offer flexibility to invest in companies across market capitalizations, adapting to market conditions.

Assessing Your Investment Strategy

Diversification

Your selection is well-diversified across different market caps. This helps spread risk and capture growth from various segments of the market.

Consistency

Investing Rs 3K to 5K monthly in each category is a disciplined approach. Regular investments via SIPs (Systematic Investment Plans) help average out market volatility.

Long-Term Perspective

With a 25-year investment horizon, you can afford to take on more risk initially and gradually shift towards safer investments as you approach your goal.

Evaluating Your Fund Choices

Large Cap Funds

Large cap funds are less volatile and provide stability. The funds you’ve chosen are reputable, but it’s crucial to monitor their performance regularly. Actively managed funds can outperform index funds by leveraging professional fund managers' expertise.

Mid Cap Funds

Mid cap funds can offer substantial returns. Both Quant Mid Cap and HDFC Mid Cap Opportunities have shown good performance. Ensure they continue to align with your risk tolerance and financial goals.

Small Cap Funds

Small cap funds are highly volatile but can be rewarding over a long period. Quant Small Cap and Nippon India Small Cap are strong choices, but keep an eye on market conditions and fund performance.

Multi Cap Funds

Multi cap funds provide a balanced approach, investing across various market caps. They are less risky than small or mid cap funds while offering potential for growth.

Flexi Cap Funds

Flexi cap funds are versatile, allowing fund managers to shift investments based on market conditions. Quant Flexi Cap and Parag Parikh Flexi Cap are well-regarded, but regular review is necessary.

Advantages of Actively Managed Funds

Actively managed funds aim to outperform the market through strategic stock selection and risk management. Fund managers adjust portfolios based on market trends and economic conditions, potentially providing higher returns compared to index funds. However, these funds have higher expense ratios due to management fees.

Disadvantages of Direct Funds

Direct funds save on commission costs but lack professional guidance. Investing through a Certified Financial Planner ensures you receive tailored advice, portfolio reviews, and rebalancing services. This personalized attention can help optimize your investment strategy.

Long-Term Investment Tips

Stay Informed

Keep track of your funds' performance and market trends. Regularly read financial news and reports to stay updated.

Review and Rebalance

Periodically review your portfolio. Rebalance if necessary to maintain your desired asset allocation. This helps manage risk and capture growth opportunities.

Tax Efficiency

Utilize tax-saving instruments like ELSS funds to optimize your tax liabilities. Understand the tax implications of your investments to maximize returns.

Emergency Fund

Maintain an emergency fund to cover unexpected expenses. This prevents you from dipping into your investments during emergencies.

Avoid Emotional Decisions

Market fluctuations are normal. Avoid making impulsive decisions based on short-term market movements. Stick to your long-term strategy.

Future Financial Planning

Child’s Education and Marriage

Start investing in instruments like PPF, Sukanya Samriddhi Yojana (for a girl child), or dedicated mutual funds for your child's education and marriage expenses. These instruments offer tax benefits and secure returns.

Retirement Planning

Consider investing in a mix of equity and debt funds for retirement. As you approach retirement, gradually shift towards safer investments to preserve capital.

Wealth Accumulation

Continue investing consistently. Compounding works best over the long term, so the earlier you start, the better. Diversify your portfolio to mitigate risks and capture growth across different sectors.

Final Insights

Your proactive approach to investing is commendable. By maintaining a diversified portfolio and investing consistently, you’re well on your way to building substantial wealth over the next 25 years. Remember to periodically review your investments, rebalance your portfolio, and stay informed about market trends. Utilizing the expertise of a Certified Financial Planner can further enhance your investment strategy and ensure you meet your financial goals. Keep up the disciplined investment approach, and you’ll likely achieve a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 23, 2024

Asked by Anonymous - Jun 21, 2024Hindi
Money
Dear Sir, I request you to guide me on below MFs investment for long term (25yrs): 1. Large Cap 1.1 Nippon India Large Cap 1.2 ICICI Prudential Bluechip. 2. Mid Cap 2.1 Quant Mid Cap Fund 2.2 HDFC Mid Cap Opportunities. 3. Small Cap 3.1 Quant Small Cap 3.2 Nippon India Small Cap. 4. Multi Cap 4.1 Quant Active Fund 4.2 Nippon India Multi Cap. 5. Flexi Cap 5.1 Quant Flexi Cap 5.2 Parag Parikh Flexi Cap. Planning to invest between 3K to 5K on monthly basis in one fund from each category. Kindly let me know if you have any better MFs in which I can invest. You're guidance will be much helpful for building a long term wealth. Thank you in advance.
Ans: You’ve done well in considering a diverse range of mutual funds for long-term wealth creation. Investing regularly over 25 years can indeed help you build significant wealth. However, let's take a closer look at your chosen funds and explore how to maximize your returns while managing risks.

Concerns with Index and Direct Funds
First, it's important to understand some potential issues with the funds you’ve chosen:

Disadvantages of Index Funds: Index funds simply track an index and do not offer any active management. In times of market volatility, they may underperform. Actively managed funds, on the other hand, have the flexibility to adapt and potentially outperform the market.

Direct vs. Regular Plans: Direct plans of mutual funds have lower expense ratios, but they lack the personalized advice and financial planning that comes with investing through a Certified Financial Planner (CFP). Regular plans, invested through a CFP, provide ongoing guidance, which can be invaluable over a 25-year investment horizon.

Large-Cap Fund Selection
Large-cap funds offer stability with moderate growth potential. Your choice of funds like Nippon India Large Cap and ICICI Prudential Bluechip is good, but let’s consider some alternatives:

Actively Managed Funds: Instead of passive large-cap funds, you might consider actively managed large-cap funds. These funds have the potential to outperform the index, offering better long-term returns.

Fund Manager Expertise: A skilled fund manager can make informed decisions that benefit the fund during different market cycles. This is crucial for long-term growth.

Mid-Cap Fund Selection
Mid-cap funds can offer higher returns, but they come with higher risks. Your choices of Quant Mid Cap Fund and HDFC Mid Cap Opportunities are interesting, but let's ensure your portfolio is balanced:

Active Management: Mid-cap stocks can be volatile. An actively managed mid-cap fund allows the fund manager to pick stocks with strong growth potential, reducing the risk of poor performers dragging down the fund.

Diversification: Ensure that the mid-cap fund you choose is well-diversified. This helps spread the risk across multiple sectors and companies.

Small-Cap Fund Selection
Small-cap funds are known for their high growth potential, but they also carry significant risks. The funds you’ve selected, like Quant Small Cap and Nippon India Small Cap, need careful consideration:

Higher Volatility: Small-cap funds can be highly volatile. While they offer high returns, the risk of loss is also high. Consider this carefully, especially since you’re planning a long-term investment.

Expert Guidance: It’s crucial to have a CFP guide you when investing in small-cap funds. Their expertise can help you navigate the ups and downs of this category.

Multi-Cap Fund Selection
Multi-cap funds invest across different market capitalizations, providing a balanced mix of large-cap, mid-cap, and small-cap stocks. Your choices of Quant Active Fund and Nippon India Multi Cap Fund are on the right track:

Balanced Exposure: Multi-cap funds offer diversified exposure across market caps. This can help reduce risk while providing growth opportunities.

Active Management: Opt for actively managed multi-cap funds where the fund manager can adjust the allocation based on market conditions, potentially boosting returns.

Flexi-Cap Fund Selection
Flexi-cap funds offer flexibility in investing across market capitalizations without any predefined limits. The funds you’ve chosen, like Quant Flexi Cap and Parag Parikh Flexi Cap, are worth considering, but with some insights:

Flexibility Advantage: Flexi-cap funds allow fund managers to allocate assets across large, mid, and small caps as per market opportunities. This flexibility can be beneficial in changing market conditions.

Managerial Expertise: Ensure that the flexi-cap fund you choose has a strong track record and is managed by a skilled fund manager. This can make a significant difference in long-term performance.

Suggested Portfolio Allocation
Considering your goal of long-term wealth creation and your risk tolerance, here’s a suggested allocation strategy:

Large-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This provides a stable foundation with moderate growth potential.

Mid-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This offers higher returns with some risk.

Small-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This is higher risk but can contribute significantly to your portfolio’s growth.

Multi-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This offers diversified exposure and balances risk across different market caps.

Flexi-Cap Fund (Actively Managed): Allocate Rs. 3,000 to Rs. 5,000 monthly. This provides flexibility and potential for optimized returns.

Regular Monitoring and Rebalancing
Investing over 25 years requires regular monitoring and rebalancing to ensure your portfolio remains aligned with your goals:

Annual Review: Conduct an annual review of your portfolio. Assess the performance of each fund and consult with your CFP to make any necessary adjustments.

Market Conditions: Stay informed about market conditions. Your CFP can guide you on whether to stay the course or make changes to your portfolio.

Life Changes: As life changes, so should your investment strategy. A CFP can help you adjust your investments based on major life events like marriage, buying a home, or planning for your child’s education.

Final Insights
Your commitment to long-term wealth creation is commendable. However, fine-tuning your investment strategy can help you achieve better results:

Focus on Active Management: Replace index and direct funds with actively managed funds. This can enhance your portfolio’s performance over the long term.

Work with a CFP: Regular investments through a CFP ensure that you have a partner in your financial journey, optimizing returns while managing risks.

Diversify Wisely: Ensure your portfolio is well-diversified across different market caps and sectors. This helps balance risk and return.

Stay Engaged: Regularly review and adjust your portfolio. Staying engaged with your investments is key to long-term success.

Investing is a marathon, not a sprint. With the right strategy and expert guidance, you can build a solid financial future for yourself and your loved ones.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 29, 2024

Asked by Anonymous - Oct 29, 2024Hindi
Money
Dear team, Hi I’m 46 years would like to start my investment in MF for 5 to 10 years . Till now I have not invested in any share market or MF. I have selected the following funds: 1. Nippon India large cap funds-Rs 10000. 2. Nippon India Small cap fund- Rs 10000. 3. Nippon India Multi cap fund -Rs 7500. 4. Motilal oswal Mid cap fund- Rs 10000. 5. Quant small cap fund- Rs 5000. 6. HDFC Focused 30 fund- Rs. 7500 Also I am NRI I working in Gulf there the above mentioned plan are regular plan thru ICICI direct as I am unable to update my KYC online. Please suggest me that the above mentioned funds are good to invest for 5 to 10 years
Ans: Firstly, your selection to start investing in mutual funds is commendable. As you’re new to mutual funds and looking for a 5 to 10-year investment horizon, a balanced approach across different fund types is a sound choice. This portfolio aligns well with a diversified strategy, as it includes large-cap, mid-cap, small-cap, multi-cap, and focused funds. Now, let’s look at each aspect in detail for better clarity.

Diversification: A Strategic Mix of Funds

Large-Cap Funds: Large-cap funds typically invest in established, stable companies. They bring stability to a portfolio and help balance the potential risk associated with mid-cap and small-cap funds. Large-cap funds are especially beneficial if you want consistent growth with lower risk than small- and mid-cap segments. They are known for their ability to protect capital during market downturns, offering smoother returns over the long term.

Small-Cap Funds: Small-cap funds tend to offer high growth potential but with a higher risk factor. They invest in emerging companies, which may experience considerable price fluctuations. However, for a 5- to 10-year horizon, small-cap funds can yield substantial returns as these smaller companies mature and grow in market valuation. Your allocation to small-cap funds can be a growth driver but requires monitoring.

Multi-Cap Funds: Multi-cap funds provide exposure to large-, mid-, and small-cap companies in a single fund. This gives them the flexibility to adapt to market conditions. Multi-cap funds are beneficial because they can shift their asset allocation to match market dynamics, offering growth potential with moderate risk.

Mid-Cap Funds: Mid-cap funds invest in companies that are in the growth phase and have the potential to become large-cap companies over time. They offer a blend of stability and growth. Including a mid-cap fund in your portfolio is advantageous as it balances the risk and return profile between large-cap and small-cap funds.

Focused Funds: These funds concentrate on a limited number of stocks. This focused approach can yield higher returns if the fund manager's choices perform well. However, it carries higher risk due to limited diversification. For a 5 to 10-year horizon, a focused fund can add significant value to your portfolio but should remain only a part of it.

Evaluation of Regular vs Direct Plans

Since you are investing through ICICI Direct and using regular plans, let’s examine the benefits of regular funds, especially for NRIs. Regular funds offer access to certified financial planners (CFPs) who can provide guidance on market trends, rebalancing strategies, and portfolio reviews. This is advantageous as managing a portfolio from abroad can be challenging. With a regular plan, the extra expense ratio cost is justified by the value-added services provided by ICICI Direct and their advisory services.

Benefits of Actively Managed Funds Over Index Funds

Actively managed funds aim to outperform the market through expert stock selection, which is valuable for short- to medium-term horizons like 5 to 10 years. Actively managed funds can react to market changes, unlike index funds, which simply track an index without considering market fluctuations. Moreover, index funds might not offer the same level of diversification in emerging markets, potentially limiting returns.

Tax Considerations for NRIs

Mutual fund investments for NRIs in India are subject to tax implications that can affect your returns. The new capital gains tax rules specify that:

Long-Term Capital Gains (LTCG): For equity mutual funds, gains above Rs 1.25 lakh are taxed at 12.5%. Holding funds longer than one year generally qualifies as long-term for equity investments.

Short-Term Capital Gains (STCG): Gains realized within a year are taxed at 20%.

Having a clear tax strategy is important to manage the impact of these taxes on your returns. You may consult your financial planner or tax advisor to structure withdrawals efficiently and keep tax liabilities manageable.

Investment Horizon and Risk Management

With a 5- to 10-year investment horizon, a balanced risk profile is critical. Here’s a recommended strategy to ensure a well-rounded portfolio:

Allocate according to time frame: Given your timeframe, it may be wise to invest more in large-cap and multi-cap funds initially for stability, then gradually increase exposure to mid-cap and small-cap funds if your risk tolerance grows.

Systematic Withdrawals: Nearing the 5-year mark, consider a systematic withdrawal plan (SWP) to start securing profits. SWPs allow you to take out funds in a structured way, protecting gains while minimizing tax impacts and potential market volatility.

Market Timing and Rebalancing

Market volatility can affect returns, especially in mid- and small-cap funds. Regularly reviewing and rebalancing your portfolio can help you adjust exposure to each category as needed. Your ICICI Direct advisory service can help assess when market conditions favor reallocating funds, ensuring you stay aligned with your goals.

Final Insights

Your portfolio selection indicates a thoughtful approach, diversified across market segments. With regular plans through ICICI Direct, you’re well-positioned to receive professional support, critical for managing your investments as an NRI. Staying focused on your financial goals, rebalancing as needed, and maintaining a tax-efficient strategy will help you make the most of your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 06, 2025

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i am currently investing 28000 per month in MF. kindly check whether i am investing in right fund or should i change th fund . My vision is to invest for another 10 year. HDFC Large and Mid Cap Fund (G) 5,000 Nippon India Small Cap Fund (G) 5,000 HDFC Large Cap Fund - Regular (G) 3,000 HDFC Focused 30 Fund (G) 3,000 Nippon India Power & Infra Fund (G) 3,000 HDFC Mid-Cap Opportunities Fund (G) 3,000 ICICI Pru Infrastructure Fund - (G) 3,000 Invesco India Infrastructure Fund 3,000
Ans: Your portfolio consists of multiple actively managed funds across different categories. Let's evaluate your current investment choices and suggest any improvements based on diversification, overlap, and risk-return potential.

Strengths of Your Portfolio
Long-Term Investment Vision: You plan to invest for another 10 years, which allows compounding to work in your favor.

Actively Managed Funds: Actively managed funds have the potential to outperform the market over the long term.

Exposure to Different Market Caps: Your portfolio includes large-cap, mid-cap, and small-cap funds, offering balanced exposure.

Sector-Specific Allocation: You have exposure to infrastructure and power sectors, which can generate high returns in the long run.

Concerns in Your Portfolio
Overlapping Fund Selection: Many of your funds have a similar investment strategy, leading to duplication of holdings.

Excessive Sectoral Allocation: Your portfolio has three sectoral funds, which increases risk if the sector underperforms.

Too Many Funds: Investing in too many funds does not always improve diversification. It can reduce the impact of outperforming funds.

Multiple Funds from the Same AMC: Having multiple funds from a single asset management company (AMC) may limit diversification.

Diversification Analysis
1. Large-Cap and Large & Mid-Cap Funds
You have allocated funds to both large-cap and large & mid-cap categories.
Large-cap funds provide stability, while large & mid-cap funds offer a balance of growth and safety.
Instead of multiple funds in this category, a single well-performing large & mid-cap fund is sufficient.
2. Mid-Cap and Small-Cap Funds
Mid-cap and small-cap funds can provide high returns, but they are also highly volatile.
Your portfolio has both mid-cap and small-cap funds, which is good for long-term growth.
However, holding too many funds in this category can lead to portfolio overlap.
3. Focused Fund Allocation
Focused funds invest in a limited number of stocks, which can increase risk.
Holding a single focused fund is better than investing in multiple funds with a similar strategy.
4. Sector-Specific Investments
Investing in sectoral funds can generate high returns if the sector performs well.
However, sectoral funds are highly volatile and risky compared to diversified funds.
Your portfolio has too much exposure to infrastructure and power sectors, increasing concentration risk.
Instead of multiple sectoral funds, a well-diversified flexi-cap fund can provide better risk-adjusted returns.
Recommended Portfolio Adjustments
Reduce Fund Overlap: Keep a single large & mid-cap fund instead of multiple large-cap and mid-cap funds.

Reduce Sectoral Exposure: Limit sector-specific investments to a smaller portion of your portfolio.

Consolidate Similar Funds: Instead of multiple mid-cap and small-cap funds, choose one well-performing fund from each category.

Increase Allocation to Diversified Equity Funds: Flexi-cap and multi-cap funds can provide better long-term stability.

Final Insights
Your long-term investment approach is well planned.
However, excessive sectoral allocation and fund duplication can reduce efficiency.
Consolidating similar funds and increasing exposure to diversified funds will improve portfolio performance.
Reducing the number of funds will also make portfolio tracking easier.
Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

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

..Read more

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Janak

Janak Patel  |60 Answers  |Ask -

MF, PF Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hi Sir/Madam, I'm 35 yrs old married man, no children, Working as Qa analyst from past 13yrs. I'm earning 1-Lack per month. I have no emis and no good savings. But rent is 25k per month I may go for house loan maybe 20-Lakhs to support my parents house But I'm worried about my future due to working in IT as QA and uncertainty about job security Can you please suggest me how can I save money and pension plan Any suggestions will be really helpful
Ans: Hi,

Based on the information provided, its difficult to provide specific responses. Even then, let me try to guide you with some pointers.

Savings -
As I understand your income and expenses do not leave any saving at this time. With 1 lakh income and 25K rent, you have 75k for other expenses. So first start by looking at these, create a budget for various expenses and see if there is any potential to make adjustments and arrive at saving a few thousands. Even a saving of 2k every month has a potential to build 10 lakhs in 15 years. So no amount is too small. Start small and keep looking for ways to save more with time.
Rent is also something to think about. Is there anyways to reduce it, a smaller house or another area or something that can work for you. When you consider new place keep in mind the over all expense you will incur not just rent, e.g. travel expenses. Overall there should be a benefit in terms of real savings in hand every month.

Loan -
Going for a loan to support your parents house will put additional burden on your budget. Do they live in the same city, if so is there an option to live with them. This can help service EMI with the rent saved.

Empower your spouse -
Another option to consider is your spouse's potential to contribute to the household income. You can encourage her towards something that she can start either a job or something on her own, may be tuitions or any other interests, anything that can generate a little more income to support/increase your savings.

Career -
As for your own future in IT, I can understand it may look challenging. Look for additional skills you can develop on the job. Many organizations have career growth options with trainings and new areas of focus where they would prefer an existing employee they can train and utilize. So look within your organization and even outside. Developing new skills can be 1 way to stay relevant in IT. Keep yourself updated with new tools and techniques to get an edge over others.
Also consider any other areas of interest/expertise you have or can develop for an alternate career. I have been in the IT industry too for a long time. Somewhere in the middle of my IT career I developed interest towards finance and specifically personal finance area and pursued it with passion and eventually I started it as a profession/business.
So look for your areas of interest.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
Dear Sir/Madam, First let me list down our holdings as of July 15, 2025. Self (Age 39) - Net Salary - 1.53 L Per Month; Variable Pay - 1 L Per Annum; Term Life Ins - 50 L; Health Ins - 5 L (Individual plan. Additional health cover provided by employer as well); 2 Houses - worth rs.50 L each (1 is yielding a rent of 8k per month); 1 Home Loan - EMI 20K (12 L Outstanding - Borrowed 26 L in Oct 2021 and reduced 14 L thru regular part payments); 1 Vacant plot - worth rs.7 L; Agri Paddy Field - ~3 L; NPS - 7.5 L; EPF - 8.5 L; NCD - 4 L (mature by 2030); Direct Stocks - 2.5 L; Mutual Funds - 19 L (all DIY - Direct Growth); MF Portfolio: (Axis Tax Saver 5K SIP since Aug 2016; Nippon India Index BSE Sensex Plan 1K SIP since May 2021; Edelweiss NIFTY LARGE MID CAP 250 INDEX Adhoc Lumpsum; TATA Digital India Fund: Tata Nifty India Tourism Index; Motilal Oswal Nifty India Defence Index: Mirae Asset Tax Saver Fund (for Wife)); Wife (age 31): Net Salary - 95 K Per Month; Variable Pay - 1.5 L Per Annum; 1 Commercial Go-down - Worth 1 Crore (Yielding 25 K rent Per Month); Gold - 300 Grams; NPS - 3 L; EPF - 3 L; Health Ins - 5 L (Individual plan. Additional health cover provided by employer as well); Our fathers are no more and our mothers are health insured; 1 kid (Boy) - 4 Yrs old (at Kinder-garden); Emergency Fund - 20 L. Question: I want to raise my son as an Archery sports person and provide him decent education as well (in Chennai metro city). My brother is less paid and he has two boy kids (5 yrs & 3 Yrs) and I want to support his kids' education as well. (living in semi-urban); Our monthly net income is 2.81 L (salaries, rents). Kindly formulate a plan for our future (wealth building, retirement, children - education, sports). Thanks a lot!
Ans: You have done many things right already. You are earning well, living within your means, and thinking of your family. You have real assets, a good emergency fund, and multiple investments. The intent to raise your son in sports and support your brother’s kids is admirable. Let us go step by step.

? Income and Cash Flow Assessment

– Your total family income is Rs.2.81 lakhs per month.
– This includes salaries and rental income.
– You have a home loan EMI of Rs.20000.
– You also get Rs.25000 rent from commercial property.
– The outflow seems manageable with this income.

You already keep aside Rs.20 lakhs as emergency fund.
This is well thought out. Please continue to keep it updated with inflation.
Ensure this is in a liquid mutual fund or sweep-in FD for easy access.

Now let’s move into goal planning and wealth building.

? Portfolio Overview and Observations

– You have Rs.19 lakhs in mutual funds.
– Most are in direct growth plans.
– You also hold index funds and thematic funds.
– NPS and EPF together have over Rs.19 lakhs.
– You have Rs.2.5 lakhs in stocks.
– You hold Rs.4 lakhs in NCDs.
– You own two houses and a commercial property.
– Your wife owns gold of 300 grams.

Overall, your asset mix is wide and strong.
But few gaps exist. Some assets may underperform long term.
We need to align all assets towards your family’s life goals.

? Disadvantages of Index Funds and Direct Mutual Funds

You hold multiple index funds. Also, all mutual funds are direct plans.

Problems with index funds:

– They simply copy market index.
– No active management.
– No outperformance during bull phases.
– Fall fully during bear phases.
– Cannot protect downside.
– Do not beat inflation well in the long run.

Problems with direct mutual funds:

– Lower cost, but no guidance or review.
– No support in selecting suitable funds.
– Risk of overlapping and over-diversification.
– Emotional decisions can hurt portfolio.
– No asset rebalancing or goal linking.
– Hard to track or monitor performance deeply.

You will benefit more from regular mutual fund plans
through a Certified Financial Planner.
They ensure portfolio reviews and better fund selection.
They help you match investments with real goals.

The service value is higher than the slightly higher cost.

? Plan for Your Son’s Sports and Education Journey

This is a meaningful and high-impact goal.

– Archery is a disciplined sport.
– Needs equipment, coaching, travel, and time.
– Start planning financially right away.

Do this:

– Estimate yearly coaching and sports costs.
– Allocate a SIP from now only for sports expenses.
– Use equity mutual funds with long-term view.
– Set aside Rs.10000 monthly towards this.
– Keep this portfolio separate from other goals.

Also, for his academic education:

– Set a separate goal-based investment for school and college.
– Education in Chennai metro will be costly.
– Keep Rs.10000 per month as SIP for education.
– Choose 2-3 well-managed diversified equity mutual funds.
– Keep reviewing yearly and increase SIP over time.

This dual-approach ensures your son gets exposure to both
sports and studies without any funding stress.

? Planning Support for Brother’s Children

This shows your long-term vision and care for your extended family.
They stay in semi-urban area, so education costs may be moderate.
Still, cost will increase over time.

– You can help them through a dedicated fund.
– Start SIP of Rs.5000 per month for this purpose.
– Invest in equity mutual funds with 10-15 year view.
– Withdraw only for their college or higher education.
– Let the fund grow untouched till then.

Keep this separate from your own child’s funds.
It avoids confusion and keeps planning clear.

Also, educate your brother about savings and child education plans.
Guide him to start small SIPs or open Sukanya or PPF accounts.

? Retirement Planning – Your and Your Wife’s Future

You are 39. Your wife is 31. You both have 20-25 years to build retirement wealth.
This time is very important.

Currently you have:

– Rs.7.5 lakhs in NPS
– Rs.8.5 lakhs in EPF
– Rs.3 lakhs NPS (wife)
– Rs.3 lakhs EPF (wife)

These are good. But not enough alone.

What to do:

– Start dedicated SIP for retirement.
– Invest Rs.15000 per month from your income.
– Your wife can invest Rs.10000 monthly.
– Use equity-oriented mutual funds.
– Choose regular plans with CFP-backed guidance.
– Review once every year.

Avoid depending on real estate or gold for retirement.
They are not liquid or tax efficient during old age.

Mutual fund retirement corpus can be withdrawn in parts.
Tax on equity funds is also predictable.

NPS is locked till 60. Use it as support only.
Don’t rely fully on it.

Build a retirement plan that keeps you comfortable
even if rental income slows down or stops later.

? Review of Existing Real Assets and Loans

You have:

– Two houses (Rs.50 lakhs each)
– One commercial go-down (Rs.1 crore)
– One vacant plot (Rs.7 lakhs)
– Agri paddy field (Rs.3 lakhs)

Out of this, only one house and go-down are yielding rent.
Second house and vacant land are not productive now.
Also, gold of 300 grams is passive holding.

Suggestions:

– Don’t increase real estate further.
– Avoid buying new plots or homes.
– Real estate gives low returns over time.
– High cost, low liquidity, and poor taxation.
– Maintenance and legal issues increase in old age.

Instead:

– Focus on mutual funds for growth.
– Mutual funds are liquid, diversified, and efficient.
– You can withdraw partially for goals.

Your current EMI of Rs.20000 is fine.
Loan balance is only Rs.12 lakhs.
Try to close it in 3 years.
Use bonuses or surplus rent for closure.

? What You Should Do with Gold and Stocks

You hold 300 grams gold.
This is fine as safety asset.

Do not invest more in gold going forward.
Returns are low and erratic.
Better to use mutual funds or EPF/NPS.

You also have Rs.2.5 lakhs in direct stocks.
Ensure this is in quality companies.
Don’t increase stock investing unless you have expertise.

Stocks need time and knowledge.
Mutual funds offer better risk handling.
Focus more on mutual fund SIPs for all goals.

? Insurance Coverage Review

You have:

– Rs.50 lakhs term insurance (self)
– Rs.5 lakhs health insurance (each)
– Additional corporate health cover

Suggestions:

– Increase term insurance to Rs.1 crore minimum.
– For your wife, take Rs.50 lakhs term cover.
– This protects your son if anything happens.
– Corporate health insurance is not permanent.
– Keep separate retail health plans active always.

Also, include critical illness riders if possible.
Medical inflation is very high.

? Estate Planning – Very Important for Families Like Yours

Since both your fathers are no more,
You understand the need for clarity in future.

– Prepare a Will for both husband and wife.
– Mention all assets clearly.
– Assign guardianship for your son.
– Include your intention to support your nephews.
– This avoids confusion and legal issues later.

Also, keep nominee details updated in:

– Mutual funds
– NPS and EPF
– Bank accounts
– Insurance policies

This brings peace of mind and security.

? Ideal Monthly Budget Structure from Your Current Income

You earn Rs.2.81 lakhs monthly.
You can follow this ideal budget model:

– 30% for all household expenses (Rs.84000)
– 10% for EMI and loans (Rs.20000)
– 10% for insurance premiums (Rs.20000)
– 40% for investments and goals (Rs.1.12 lakhs)
– 10% for lifestyle, travel or miscellaneous (Rs.28000)

This way you enjoy life, stay protected, and build wealth peacefully.

? How to Monitor Your Plan Every Year

Each year, do these 5 reviews:

– Check if SIPs are linked to your goals
– Increase SIP amounts as income grows
– Review mutual fund performance
– Track actual cost of sports and education
– Ensure insurance and emergency funds are adequate

A Certified Financial Planner can do this yearly review.
This keeps your plan aligned and stress-free.

? Finally

You are financially strong today.
You have a good mix of income, assets, and savings.
You care about your family and extended family.
You are future-focused and responsible.

Please take the next steps now:

– Shift your direct mutual funds to regular plans through a CFP
– Exit index funds and thematic funds gradually
– Stick to diversified actively managed equity funds
– Allocate funds to son’s sports and education
– Start retirement SIPs immediately
– Review term and health covers
– Complete your Wills this year
– Avoid more real estate or gold investments

With this 360-degree plan, you can reach your goals peacefully.
You can raise your son with values, health, education, and talent.
And also uplift your brother’s kids quietly and strongly.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Career
Sir please tell best colleges for bba /b.com with specialisation in fintech /business analytics within india
Ans: Symbiosis Skills and Professional University, Kiwale, Pune offers BBA FinTech. Chandigarh University, Mohali offers BBA Hons FinTech in partnership with KPMG. Doon Business School, Dehradun offers BBA FinTech. Anil Surendra Modi School of Commerce (NMIMS Mumbai) offers BBA Analytics. MIT ADT University, Pune offers BBA FinTech. Alliance University, Bengaluru offers BBA FinTech Hons. CMR University, Bengaluru offers BBA FinTech. Jain University, Bengaluru offers B.Com Business Analytics. Presidency University, Pune offers B.Com Business Analytics. Loyola College, Chennai offers B.Com Business Analytics. Kristu Jayanti College, Bengaluru offers B.Com Business Analytics. Amity University, Noida offers BBA FinTech and B.Com Analytics. IBS Hyderabad offers BBA Analytics with global credit transfer. NMIMS Shirpur offers BBA Analytics (online and campus). Symbiosis Centre for Information Technology (Pune) offers BBA Analytics (via SET).

Eligibility across most institutions is a minimum of 50% aggregate in Class 12 (with Commerce or Science stream), with admission based on merit, CUET-UG, institute-level tests (SET, AIMA UGAT), or direct selection. All the recommended colleges have NAAC A++/A+ or relevant accreditations, offer curricula combined with specialized FinTech or analytics labs, industry tie-ups, experienced faculty, and active placement cells that consistently achieve 75–90% placements. These programs provide up-to-date modules on digital payments, blockchain, big-data analytics, business intelligence, and AI applications in financial services, and include extensive capstone projects, internships, and professional certifications to bridge the industry-academia gap. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Career
Sir i got selected into scaler . Had a campus tour and hostel tour evrything was fine . I am intrested in CSE . Can you please tell whether joining scaler is safe or not . Are theese new age colleges worth it . Keeping high fees aside are they good in other aspects ?
Ans: Shashank, Scaler’s four-year School of Technology in Bangalore delivers a rigorous CSE curriculum endorsed by the European Credit Transfer and Accumulation System (ECTS) and backed by InterviewBit’s industry-vetted syllabus covering data structures, algorithms, system design and cloud computing through 47 specialized on-campus labs. Faculty comprises seasoned engineers from Google, Amazon and Microsoft who offer live interactive sessions, one-on-one mentorship and TA-led practice to reinforce learning. Accreditation via ECTS affords international credit transfer, but lack of UGC/AICTE recognition means learners must concurrently pursue a formal degree to access government exams and research pathways. The dedicated Careers team conducts mandatory mock interviews and supports placements for six months post-program, facilitating connections with over 900 partner employers and achieving a 93.5% placement rate with 39 LPA top-quartile average salaries, according to KPMG’s audited report. Campus and hostel infrastructure in Electronic City provide a modern tech environment, though high fees and absence of a standalone degree credential can limit eligibility for certain local roles. Internships are integrated into semesters, yet the intensive pace demands strong time management and self-motivation to excel.

Recommendation: Scaler’s School of Technology is a safe and forward-looking choice if you value cutting-edge CS education, global accreditation and proactive placement support; ensure you secure a parallel accredited degree to fulfil regulatory eligibility and balance the investment by leveraging internships, mentorship and rigorous project work for maximum ROI. All the BEST for Admission & a Prosperous Future!

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Sunil

Sunil Lala  |204 Answers  |Ask -

Financial Planner - Answered on Jul 15, 2025

Money
I am 33 now earning 1.05L permonh in hand (also 1.5L Variable pay every year), have a car loan left for another 4 years of 11300 per month.. no assets as of yet. no other EMIs too. My monthly expenses are max of 40K. I do pay LICs above 1L per year (strategically to get money paid for my kids education(50 - 60% burden cleared)..).. I do have a 6 months of savings in case of any issues with job. I am not interested in getting a home or purchasing one. But i am interested to buy a land of at least 10 acers and in future use for farming and animal husbandry( transition from corporate to farmer by the age of 50 years).. i am left with 17 years now for the transition.. how to execute the plan financially (10acers land around 1.2 Cr plus another 10 lacks for improvement and 20L for a small home in the land which can be further improved).I am also planning kids this year..
Ans: Hi Yashaswi, firstly I believe you are parking money in LICs above 1L per year which is ineffecient use of money, you can have better investments which will yield better returns for your kids' education. Secondly, about your plans for the land, there has to be a goal based investment plan in place to achieve the target. You will have to back calculate to come to an investment amount that you can do per month after factoring in inflation and expected returns from the asset. Visit the website www.slwealthsolutions.com and let me know if you would like to have a detailed conversation around this :)

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Ravi

Ravi Mittal  |618 Answers  |Ask -

Dating, Relationships Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Relationship
Hi , I am married since past 13 years. I am happy in my marriage. But from pat 1 month my ex came in my life. I tried to ignore him first, avoided him but somehow he entered my life. Now the situation is we talk everyday on call and wen we aren't talking on call than we are chatting with each other. Basically we talk with each other every minute. I really miss him in my life whereas he misses me more than me . He pushes me to meet up but till now I m restricting myself to not to meet him and limit myself on call. Now we both are each other's habit but somehow i feel all this is very wrong bcoz I hav a loving husband. And yes I forgot to mention he will be getting shortly divorced from his wife with whom he had an love marriage. Please help, what should I do ??
Ans: Dear Anonymous,
I understand that there’s nostalgia and a certain familiarity at play here, but as you said yourself, this isn’t fair to your husband. I wouldn’t have said this if you even once mentioned that you reconnected as friends. But, it seems mildly romantic from where I am standing. Plus, I am assuming that your husband doesn’t know about this reconnection. It’s truly unfair to him. I suggest either creating a little more distance from your ex, and building boundaries, and most importantly, speak to your husband and let him know that you reconnected. I am sure it feels very nice to get attention from someone who was once important to you, but I assure you that this isn’t worth ruining your happy marriage. New attention always feels good at first, but eventually this too will become routine. Please tread carefully.

Hope this helps.

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Career
Sir NIT suratkkal mechanical design specialization Mtech
Ans: I believe you had raised the following question earlier. I had requested a few clarifications at the time, which you have now provided. Here’s your earlier question: "I had received offer from NITK and IITH Mtech mechanical and aerospace engineering course specialization mechanical design I have accepted NITK as of now but what would be your opinion I'd like to know??" And here is the answer to your question: NIT Karnataka’s Mechanical Design specialization is NAAC A+-accredited and ranked 17th in NIRF Engineering, offering a two-year curriculum in solid mechanics, CAE, vibrations and product development through 18-seat cohorts. The Department of Mechanical Engineering houses advanced CAD/CAM, thermal, fluid mechanics, mechatronics and virtual labs, while the Centre for System Design drives e-mobility and design innovation projects. Its M.Tech placement rate rose from 75% in 2023 to 83% in 2025, with recruiters like Microsoft and L&T. IIT Hyderabad’s Aerospace Engineering course, within a combined MAE department, is NBA-accredited and features core modules in flight mechanics, composites, aeroelasticity and propulsion. State-of-the-art facilities include wind tunnels, laser diagnostics, shock tubes and composite fabrication labs, supported by DRDO, ISRO and Honeywell partnerships. Its M.Tech placements achieved 76.5% consistency in 2024, with average packages of ?18–22 LPA and participation from 335 companies. Both offer PhD-qualified faculty, robust R&D culture and active placement cells, yet differ in specialization focus and recruiter ecosystems.

recommendation
For a focused Mechanical Design pathway with higher recent placement consistency, abundant design-manufacturing labs and strong interdisciplinary projects, retain NITK’s Mechanical Design. If you prefer cutting-edge aerospace research, broader industry-funded collaborations and specialized facilities in propulsion and structures, consider IIT Hyderabad’s Aerospace Engineering. All the BEST for Admission & a Prosperous Future!

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Janak

Janak Patel  |60 Answers  |Ask -

MF, PF Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hi.i am 40 years old.i have a son in std 3.my salary is 1.1 lac per month.i have 50 lakh fd.epf 2 lakh.liquid 2.5 lakh cash.pls suggest me for retirement
Ans: Hi,

You have about 15-20 years before retirement and that's a good time period to accumulate a good retirement corpus.

Your son's education will remain your priority during this period also. Assuming you can fund his education from your monthly income at least till his 10th/12 grade. You can decide on an amount for his graduation/post graduation that you want to provide to him. For example if you want to provide 10 lakhs when he is 18 years old, you will need to start investing a monthly SIP amount of 2000 in mutual funds assuming returns of 12%. So based on the amount required you can calculate the SIP amount required.

You have EPF of 2 lakhs which is not sufficient today but assuming you continue contributions and after 15 years this can be a considerable amount. But still may not be sufficient for retirement, so you can consider it as part of/contribution to your retirement.

So lets look at your FDs - you have 50 lakhs in FDs. Even at 7% interest on them you are not going to beat inflation as you will need to pay tax on the interest income.
This money has a potential to earn better returns and not just beat inflation, but also create a retirement corpus which can be sufficient for 20 years (this depends on your expenses also).

If you split this 50 lakhs and keep 5 lakhs in FDs for emergencies, you can invest the remaining 45 lakhs to create a good corpus.
If you invest 45 lakhs in Mutual funds and assuming a return of 12% over 15 years, you will have a corpus of approx. 2.70 crores.
With 15-20 years for retirement, you have an advantage to achieve your goals.

Though these numbers may look good now, they have to be evaluated with all other parameters like your monthly expenses, other goals in life, Son's education needs etc.

I recommend you consult a CFP or a fee based advisor and discuss all aspects towards a financial plan that will cover Retirement and all other goals. The Plan will help you better prepare for the future and provide alternatives and options and a clear roadmap towards achieving them. It will also cover aspects of health and life insurance.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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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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