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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Dec 06, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
N Question by N on Dec 03, 2023Hindi
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Dear sir Im a retired govt servant. I have a corpus of 48L in various mfs with an avg income of 12% and a complete component of SCSS, 30L. I need a monthly swp of 60k . Pl suggest. I also have a commitment of my daughter's marriage in next 3 yrs .

Ans: I’m assuming that you have invested in equity-oriented funds since your 40s or 50s and the funds are now stabilized and generating consistent return in the range of 11-13% on annual basis. On the basis of above assumption, I assume your portfolio to last till your early 70s.

Regarding the goal of daughter’s marriage, I suggest you to utilize your SCSS at the time of the goal as interest rate might be lower by time and you will get very low returns for re-investing in SCSS in that time.

As per my analysis, withdrawing 40k monthly will easily cater to your requirement till the age of 75 years.
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

Ramalingam Kalirajan  |8931 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - May 12, 2024Hindi
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Hi sir, I am 59 yr old working for a pvt organisation and have no retirement benefits. I stated SIP in MF about 3 yrs and have a fund value of 35 lakh. An FD for 5 lakh, term policy for 80 lakh, joint health insurance policy for 10 lakks for me my wife and my wife.I own a flat to live in. I don't have any loans. Presently my take home salary is 1.5 lakh and monthly expenditure is 50 k .I can work as long as I want and presently fit to work Now to get a monthly 50 k per month, through. SWP. How much fund is required and how much SIP for what time should I do it.
Ans: It's commendable that you have taken proactive steps towards securing your financial future. Given your current situation, let's outline a plan to achieve a sustainable monthly income of 50,000 rupees through a Systematic Withdrawal Plan (SWP).

Assessing Current Financial Status
You have a well-balanced portfolio:

Mutual Funds (MF): 35 lakh rupees
Fixed Deposit (FD): 5 lakh rupees
Term Policy: 80 lakh rupees
Joint Health Insurance: 10 lakh rupees
No Loans
Take Home Salary: 1.5 lakh rupees
Monthly Expenditure: 50,000 rupees
Understanding SWP (Systematic Withdrawal Plan)
An SWP allows you to withdraw a fixed amount from your mutual fund investments regularly. To generate 50,000 rupees per month, you need to consider the longevity of your investments and expected returns.

Required Fund for SWP
To calculate the corpus needed, we assume a conservative annual return of 8% from your investments and a withdrawal period of 30 years.

So, the rough estimate works out to Rs 75 Lacs.

Building the Corpus
You currently have:

Mutual Funds: 35 lakh rupees
Fixed Deposit: 5 lakh rupees
Total current savings: 40 lakh rupees

You need to bridge the gap between 40 lakh rupees and 75 lakh rupees, which is 35 lakh rupees.

Increasing SIP Contributions
Given you are 59 years old, aiming to accumulate this amount before retirement requires increasing your SIP contributions significantly. Let's assume you plan to retire in 5 years.

Calculating SIP Requirement
To bridge the gap of 35 lakh rupees in 5 years, assuming an average annual return of 12% from your mutual fund SIPs.

Making It Feasible
Since 43,000 rupees might be a high SIP amount, consider the following adjustments:

Increase SIP gradually: Start with a feasible amount and increase it annually.
Consider lump-sum investments: Any bonuses or extra income can be added to your mutual funds to boost the corpus.
Conclusion
To achieve a 50,000 rupee monthly SWP, you need to accumulate approximately 75 lakh rupees. Start with a higher SIP contribution around 43,000 rupees, adjusting based on feasibility, and consider lump-sum investments. Regular reviews with a Certified Financial Planner will ensure you stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8931 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - May 13, 2024Hindi
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I am 39 years old earning a monthly salary of 1.20 Lakhs. My investment as on date is PF of Rs. 18 Lakhs, Mutual funds Rs.19 Lakh and Shares of Rs. 8 Lakh. I have covered myself with endowment policy of Rs. 13 Lakhs. I also have a home loan of Rs.75 Lakhs and the repayment will start from Oct 2025. I have covered my life against the loan availed with a term insurance. It’s an under construction flat. Currently I am investing 40k in SIP and 5k in Vol PF. My daughter is 9 years old and in 5th standard. I have 21 years of service left. I am looking for a corpus of 1.5 to 3 crore in the next 5 years and also to close my loan in the next 15 years. At the age of 60 I must be debt free and earning monthly income of at least a Lakh. Please advice. My wife 33 years is also employed she is also earning Rs. 90k per month.
Ans: Crafting a Comprehensive Financial Plan
You've laid out some clear objectives for your financial future, and I'm here to help you navigate the path towards achieving them.

Current Financial Snapshot
Assets
You've made significant investments in PF, mutual funds, and shares, providing a solid foundation for wealth accumulation.

Liabilities
Your home loan presents a sizable debt, but with a structured plan, it can be managed effectively.

Retirement Planning
Corpus Target
Your goal of building a corpus of ?1.5 to ?3 crore in the next 5 years is ambitious yet attainable with disciplined saving and strategic investing.

Investment Strategy
Consider diversifying your investment portfolio further to optimize returns while managing risk effectively.

Loan Repayment Strategy
Loan Closure
Targeting to close your home loan in the next 15 years is a prudent approach to achieving debt-free status by age 60.

Accelerated Payments
Explore options to increase your EMI payments or make lump-sum prepayments whenever possible to reduce the loan tenure and interest burden.

Income Generation
Monthly Income Goal
Aiming for a monthly income of at least ?1 lakh by age 60 requires careful planning and investment in income-generating assets.

Dividend Income
Consider investing in dividend-paying stocks or mutual funds to supplement your income stream.

Education Planning
Daughter's Education
With 21 years of service left, prioritize investing in education funds or SIPs to secure your daughter's future educational needs.

Insurance Coverage
Ensure adequate life and health insurance coverage for yourself and your family to safeguard against unforeseen circumstances.

Collaborative Financial Management
Spousal Contribution
Leverage your wife's income to boost your joint savings and investment efforts, enhancing your financial security collectively.

Joint Planning
Work together to align your financial goals, investments, and savings strategies, maximizing efficiency and effectiveness.

Conclusion
With a well-crafted financial plan tailored to your aspirations and circumstances, you can confidently work towards achieving your goals of wealth accumulation, debt freedom, and financial security for yourself and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8931 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

Asked by Anonymous - May 28, 2024Hindi
Money
Hii Sir, Private bank employee,with a monthly salary of 1.10 lacs ,want to retire early at the age 45 , present age 36 yrs. Need monthly income of 2 lacs after retirement ,also need corpus of 2 cr for my daughter education and marriage ,daughter age is 3 yrs now. Investment details. Sip 17000 monthly since last 8 yrs with a total balance as on date is 23 lacs ,and in share market 1.5 lacs invested. Fixed deposit of 20 lacs and 21 lacs in Mis at bank from there I am getting 16 k monthly . In ppf investment 5 thousand monthly since last 3 yrs.total fund available 2.10 lacs. In lic Yearly 1.55 lacs investment since last 10 yrs . Rd of Rs 15000 monthly. Kindly suggest
Ans: Early Retirement Planning for a Private Bank Employee

Retiring early is an admirable and ambitious goal. It requires a well-thought-out strategy. As a Certified Financial Planner, I understand your aspirations. Let's analyse your current financial situation and explore ways to achieve your goals.

Assessing Your Current Financial Situation
Your current financial landscape includes various investments. You have SIPs, shares, fixed deposits, MIS, PPF, LIC, and recurring deposits.

SIP (Systematic Investment Plan): Rs 17,000 monthly for the past 8 years, totalling Rs 23 lakhs.

Share Market: Rs 1.5 lakhs invested.

Fixed Deposits: Rs 20 lakhs.

Monthly Income Scheme (MIS): Rs 21 lakhs, generating Rs 16,000 monthly.

Public Provident Fund (PPF): Rs 5,000 monthly for 3 years, totalling Rs 2.1 lakhs.

LIC Policies: Rs 1.55 lakhs yearly for the past 10 years.

Recurring Deposit (RD): Rs 15,000 monthly.

Understanding your financial assets helps in forming a comprehensive retirement strategy.

Evaluating Your Retirement and Future Goals
You plan to retire at 45, requiring Rs 2 lakhs monthly post-retirement. Additionally, you need a corpus of Rs 2 crores for your daughter's education and marriage.

Monthly Income Requirement:
Post-retirement, you need Rs 2 lakhs monthly. This will require a substantial corpus to generate that income without exhausting your funds.

Daughter’s Education and Marriage Corpus:
You need Rs 2 crores in 15 years for your daughter's education and marriage. This needs careful planning and investment.

Investment Analysis and Recommendations
Based on your goals, let's discuss the strengths and potential adjustments to your current investment strategy.

Systematic Investment Plans (SIPs)
SIPs are a disciplined way of investing. Your consistent investment of Rs 17,000 monthly over 8 years is commendable. However, consider increasing the SIP amount as your salary grows to enhance your corpus.

Share Market Investments
Investing in the share market can yield high returns but also carries risks. Diversifying your portfolio with a mix of blue-chip and growth stocks could be beneficial. It's important to regularly review and rebalance your portfolio.

Fixed Deposits and MIS
Fixed deposits and MIS provide stability and regular income. However, they offer lower returns compared to other investment options. Consider reallocating a portion to higher-yielding investments for better growth.

Public Provident Fund (PPF)
PPF is a secure investment with tax benefits. Continue your monthly contributions, but also explore other tax-efficient options to complement this.

Life Insurance Policies (LIC)
LIC policies offer safety but often lower returns. Assess the performance of these policies. If they underperform, consider redirecting funds to more lucrative options.

Recurring Deposits (RD)
RDs offer moderate returns with low risk. They are good for short-term goals. For long-term growth, consider shifting some funds to equity mutual funds.

Strategic Financial Adjustments
To meet your early retirement and future goals, consider the following strategic adjustments:

Increase SIP Contributions:
Boost your SIP contributions regularly. This leverages the power of compounding, enhancing your corpus significantly over time.

Diversify Investments:
Diversify across asset classes. This spreads risk and can improve returns. Balance your portfolio with equity, debt, and alternative investments.

Active Fund Management:
While index funds have their place, actively managed funds can outperform in dynamic markets. They provide the potential for higher returns through professional fund management.

Professional Guidance:
Consult a Certified Financial Planner. They provide tailored advice, helping you navigate complex financial decisions and optimise your investment strategy.

Planning for Post-Retirement Income
To generate Rs 2 lakhs monthly post-retirement, consider the following:

Annuity Products:
Avoid these due to low returns. Instead, focus on investments that provide better growth and regular income.

Mutual Funds and SWPs:
Systematic Withdrawal Plans (SWPs) from mutual funds can provide regular income. They offer flexibility and potential for capital appreciation.

Equity and Debt Allocation:
Maintain a balanced allocation between equity and debt. This ensures stability while providing growth potential.

Planning for Daughter’s Education and Marriage
Achieving a Rs 2 crore corpus in 15 years requires disciplined investing. Here’s a plan:

Dedicated Investment Plan:
Create a dedicated investment plan for your daughter’s future needs. This can include a mix of equity and debt funds tailored for long-term growth.

Regular Reviews and Adjustments:
Regularly review your investments. Adjust as needed based on market conditions and performance.

Leverage Tax Benefits:
Utilise tax-efficient investments to maximise returns. This helps in growing your corpus without eroding gains through taxes.

Summary and Next Steps
Achieving early retirement and securing your daughter’s future is challenging but attainable with strategic planning. Increase your SIP contributions, diversify investments, and consult a Certified Financial Planner for personalised advice.

Your commitment to your financial goals is impressive. With careful planning and disciplined investing, you can achieve financial freedom and secure your family’s future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |6465 Answers  |Ask -

Career Counsellor - Answered on Jun 17, 2025

Career
Sir igot 444 and AIQ is 131279 iam obc ncl (kerala) there is any possibilities for BDS in government college.
Ans: Nibla, A NEET score of 444 falls below the typical marks cutoff for OBC-NCL candidates seeking BDS in government dental colleges, where qualifying marks range between 520–540 for OBC students. Similarly, All India BDS closing ranks under the 15 percent AIQ for OBC rarely exceed 35,000, whereas your AIQ rank is 131,279, placing you far outside the viable admission range. Nationwide only about 3,000 government BDS seats exist, and premier institutions such as SCB Dental College (Cuttack), Government Dental College (Bangalore), and Tamil Nadu Government Dental College (Chennai) closed with AIQ ranks under 30,000 for OBC. Under Kerala’s 85 percent state quota, Government Dental College, Thiruvananthapuram admitted OBC candidates with ranks up to 51,595 in earlier years, while Kottayam and Kannur closed within similar state-rank brackets, implying state ranks must be substantially lower than your AIQ conversion would yield. Consequently, securing a BDS seat in a government college appears highly unlikely. Consider prioritising private or deemed dental colleges with lower cutoffs and participating in both AIQ and state counselling to maximise admission options. Recommendation: Focus on private or deemed dental institutions, as government quota thresholds exceed reachable marks and ranks. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |6465 Answers  |Ask -

Career Counsellor - Answered on Jun 17, 2025

Asked by Anonymous - Jun 14, 2025
Career
Which university is good among VIT, AMRITA AND SRM?
Ans: VIT Vellore maintains a 90–95% placement rate across the last three years, facilitated by 632–945 recruiters visiting annually and yielding over 3,300 super-dream (≥10 LPA) and 2,800 dream (≥6 LPA) offers in 2024, with a median package near ?9 LPA and strong tech-sector engagement from companies like Microsoft, Amazon and TCS. Amrita Vishwa Vidyapeetham Coimbatore records 90–100% placement consistency for its BTech cohorts, supported by 300+ recruiters including IBM, Wipro and Cognizant, with median salaries around ?7.75 LPA and emphasis on internships and research projects embedding industry standards early in the curriculum. SRM Chennai’s flagship Kattankulathur campus posts 85–90% placement rates over three years, hosting 980–1,313 recruiters and generating 5,500–9,000 offers annually, with average packages around ?7.2 LPA and core-engineering roles from Cognizant, Infosys and Ford. VIT leads in high-value dream offers and recruiter diversity, Amrita excels in top-end consistency and academic rigor, and SRM offers broad sectoral reach with strong core engineering streams.

Recommendation: Prioritise VIT Vellore for maximum high-value offer volume and expansive recruiter network, choose Amrita Coimbatore for nearly universal placement consistency and integrated research opportunities, and consider SRM Chennai if core engineering exposure and diverse sectoral hiring are primary goals. All the BEST for the Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |8931 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 17, 2025

Asked by Anonymous - Jun 16, 2025
Money
Hello Sir, I want to redeem a mutual fund to reduce number of fund in my portfolio. This fund is of 5% allocation of my total portfolio and has not beaten the benchmark. I want to how to reinvest this redeemed amount to another MF, should I do SIP or lumpsum. Will lumpsum investment at current market effect the return or I should invest lumpsum without timing the market. My investment horizon is for 15 years. Also will this effect the compounding
Ans: You are thinking in the right direction. Streamlining your mutual fund portfolio is a smart move. Managing fewer, better-performing funds will help you get more focused growth.

You are planning to redeem a fund that has underperformed. That shows your awareness as an investor. Let us now look at the right way to reinvest the amount. Your investment horizon is long—15 years—which is an advantage.

Let us evaluate every angle in detail.

Why It’s Okay to Exit an Underperforming Fund
You mentioned this fund has only 5% weight in your portfolio. It has not beaten its benchmark. That’s a clear red flag.

Reasons to exit:

Fund not beating benchmark for 3 years or more

Fund manager or strategy changed

Poor consistency in performance

Other funds doing better in same category

Selling such funds is wise. It makes your portfolio clean and growth-focused.

One bad performer can pull down overall return. Removing it improves portfolio efficiency.

You made a good decision.

Where to Reinvest the Redeemed Amount
After selling, your goal is to reinvest in another mutual fund. Let us plan it properly.

You asked whether to do SIP or lumpsum. Both are useful, but must be used wisely.

First, identify where this money should go.

What type of fund should you choose:

If your existing fund mix is strong, add to an existing winner

Or choose a new fund with consistent 5-year and 10-year track record

Choose only actively managed funds, not index funds

Why avoid index funds:

Index funds copy the market without intelligence

They fall when the market falls. No protection

No chance to beat benchmark

Passive nature reduces wealth-building capacity

Fund manager has no freedom to select better stocks

Actively managed funds give you:

Expert decision-making

Freedom to shift between sectors

Better downside protection

Superior long-term results in Indian market

So always prefer actively managed mutual funds via regular plans.

SIP vs Lumpsum: Which One is Better?
Let us now come to your main question.

You want to know how to reinvest the amount. SIP or lumpsum?

Your investment horizon is 15 years. This is very long. So you can take equity exposure fully.

Still, timing matters when investing lumpsum.

Let us assess both methods side by side:

When Lumpsum Makes Sense
Lumpsum means investing full amount at once. It works in these conditions:

Market is already corrected or trading low

You are not emotionally affected by short-term falls

You will stay invested for full 15 years

You have chosen a good fund with strong past record

You don’t need this money for short-term goals

Benefits of lumpsum in long-term:

Full compounding starts from day one

Money is fully exposed to market

No waiting time, no idle money

Higher returns if market performs well after entry

But don’t forget, lumpsum needs mental stability.

What if market falls after lumpsum?

You may feel anxious

You may exit early due to fear

Short-term losses can affect your patience

That’s why timing does affect short-term performance. But not long-term growth if you stay invested for 15 years.

When SIP is Better
SIP is the habit of investing every month.

Even for lumpsum amounts, you can do STP (Systematic Transfer Plan).

STP means:

Keep the lump amount in liquid fund

Transfer fixed amount every month into the equity fund

Example: Rs. 50,000 per month for 6–10 months

Why STP is useful:

Reduces risk of market timing

Avoids investing entire amount at peak

Keeps you emotionally stable

Avoids regret in case of short-term correction

Creates smoother entry into equity

Use STP when:

Market is at all-time highs

Volatility is increasing

You are not sure about market direction

You want peace of mind during investment

So, STP is a balanced way to invest lump amounts.

Will Lumpsum Affect Compounding?
This is an important question.

Let us understand compounding clearly.

Compounding depends on:

Time invested

Return generated

Amount invested

Whether you do lumpsum or SIP, the key is how long money stays invested.

Lumpsum helps compounding start early. SIP creates compounding gradually.

In long term (15 years):

Lumpsum grows faster if invested at right level

SIP grows steadily but reduces entry timing risk

Both will give good results if fund is right

So yes, lumpsum helps compounding better if done at right time.

But STP gives you that benefit with safety.

You get smoother growth and still early compounding.

Ideal Strategy for Your Case
Let us now give you a proper, full-scope recommendation.

Step-by-Step Plan:
Redeem the underperforming fund.

Park the money in a liquid mutual fund (not savings account).

Start a 6-month STP to a high-quality active mutual fund.

Choose the fund after checking its 5-year, 10-year consistency.

Avoid new index funds or ETFs.

Use regular plans through Certified Financial Planner channel.

After STP ends, monitor that new fund every year.

This plan will:

Reduce timing risk

Start compounding early

Bring emotional comfort

Keep your investing smooth

Increase overall return stability

Additional Things to Keep in Mind
Since your money is being shifted, some more factors to remember:

Mutual Fund Capital Gains Tax Rules (Updated):

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

STCG (below 1 year) taxed at 20%

These are recent rules. Plan redemptions smartly

Avoid frequent switches to reduce tax impact

Emotional Behaviour Risk:

Do not panic if market dips during STP

Do not stop investing after seeing short-term fall

Compounding works best when you do not interrupt

Yearly Review Required:

Check your fund’s performance yearly

Compare with peers in same category

Use this to decide future additions or redemptions

Work with a CFP to do regular health check-up of portfolio

Finally
You are thinking smart. Trimming funds and reallocating is a sign of maturity.

But always shift money with a goal and method.

Use these steps:

Avoid underperforming and index funds

Reinvest using STP into active mutual funds

Prefer regular plans with CFP guidance

Let money stay invested for full 15 years

Don't check NAV daily. Focus on yearly growth

Review fund quality yearly

Avoid timing the market too much

Stick with this method and your wealth will grow steadily.

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

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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