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Ramalingam

Ramalingam Kalirajan  |6971 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 10, 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
Manoj Question by Manoj on Dec 27, 2023Hindi
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Sir I want to invest Rs. 10000 monthly. Shall I invest in PPF or in mutual fund. I already had a ppf account which Will be maturing in 10 yrs... Manoj Kumar

Ans: Manoj, the decision to invest in PPF (Public Provident Fund) or mutual funds depends on your investment goals, risk tolerance, and investment horizon.

PPF offers tax benefits under Section 80C of the Income Tax Act and provides guaranteed returns. However, the interest rates on PPF are subject to change and may not always beat inflation.

On the other hand, mutual funds offer the potential for higher returns over the long term but come with market risk. Equity mutual funds, in particular, have the potential for higher growth but may experience volatility in the short term.

If you're comfortable with market fluctuations and have a long-term investment horizon (typically more than 5 years), mutual funds may offer better growth potential compared to PPF. However, if you prioritize safety and tax benefits, continuing with PPF or opening a new account may be a suitable option.

Consider your financial goals, risk appetite, and liquidity needs before making a decision. It's advisable to consult with a financial advisor who can assess your situation and provide personalized advice based on your requirements.
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  |6971 Answers  |Ask -

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

Asked by Anonymous - May 28, 2024Hindi
Money
I have around 4 lakhs in PPF as of now 2024 May and its going to mature by 2029 March . If I invest around 1.5 lakhs around every year from now it will 1.5*5 which is 7.5 lakhs and maturity amount will be around 15 lakhs with prevailing interest rate of 7.1 annually . Is it wise to invest this 1.5 lakhs annually in any Equity Mutual fund for over 5 years getting returns over 12-13% . Which option would be beneficial as PPF maturity amount is tax free.
Ans: Investing wisely requires understanding the potential returns, risks, and tax implications of different investment options. In your case, you are considering continuing your investment in the Public Provident Fund (PPF) versus shifting to an equity mutual fund. Let's explore these options in detail.

Understanding Your Current PPF Investment
You have Rs 4 lakhs in your PPF account, which will mature in March 2029. You plan to invest Rs 1.5 lakhs annually until maturity. The current interest rate for PPF is 7.1% per annum. PPF investments are attractive due to their tax-free returns at maturity.

Projected PPF Maturity Amount
With your planned annual contributions, let's calculate the projected maturity amount.

Current PPF balance: Rs 4 lakhs
Annual investment: Rs 1.5 lakhs for the next 5 years
PPF interest rate: 7.1% per annum
Maturity year: 2029
Given these inputs, the maturity amount can be calculated using the compound interest formula specific to PPF.

PPF Benefits
Tax-Free Returns: The maturity amount, including interest earned, is tax-free.
Risk-Free Investment: PPF is a government-backed scheme, ensuring safety of principal.
Fixed Returns: The interest rate, although subject to change, offers a predictable return.
PPF Limitations
Lower Returns: Compared to equity investments, PPF returns are relatively lower.
Lock-In Period: PPF has a long lock-in period, reducing liquidity.
Exploring Equity Mutual Funds
Equity mutual funds invest in stocks and have the potential to offer higher returns over the long term. You are considering an expected return of 12-13% per annum.

Projected Returns from Equity Mutual Funds
Let’s consider the potential growth of Rs 1.5 lakhs invested annually in an equity mutual fund with a 12-13% annual return over the next five years.

Equity Mutual Funds Benefits
Higher Potential Returns: Equity mutual funds generally offer higher returns than fixed-income investments like PPF.
Liquidity: Equity mutual funds are more liquid compared to PPF, allowing easier access to your money.
Diversification: Mutual funds provide diversification across different stocks and sectors.
Equity Mutual Funds Limitations
Market Risk: Returns are subject to market fluctuations, making them more volatile.
Tax Implications: Capital gains from equity mutual funds are subject to taxes, affecting net returns.
Comparative Analysis: PPF vs. Equity Mutual Funds
To determine the better investment option, let’s compare the projected returns and other factors:

PPF
Initial Investment: Rs 4 lakhs
Annual Investment: Rs 1.5 lakhs
Interest Rate: 7.1%
Maturity Amount: Approximately Rs 15 lakhs (total contributions + interest)
Tax-Free: Yes
Equity Mutual Funds
Annual Investment: Rs 1.5 lakhs
Expected Return: 12-13% per annum
Estimated Value: Higher potential returns, but subject to market volatility and taxation
Tax Implications: Long-term capital gains tax applicable
Calculation Example
If you invest Rs 1.5 lakhs annually in an equity mutual fund, assuming a 12% annual return, the approximate value after 5 years would be significantly higher than the amount invested in PPF.
Risk vs. Return Considerations
PPF
Low Risk: Government-backed, safe investment
Stable Returns: Fixed interest rate, predictable growth
Tax Benefits: Entire maturity amount is tax-free
Equity Mutual Funds
Higher Risk: Subject to market risks, returns can vary
Higher Returns: Potential to earn significantly more than PPF
Taxation: Long-term capital gains tax applies on returns
Assessing Your Financial Goals
Risk Tolerance: If you prefer safety and guaranteed returns, PPF is suitable.
Return Expectation: If aiming for higher returns and willing to take some risk, equity mutual funds are better.
Tax Considerations: PPF offers tax-free returns, while equity funds are taxed.
Recommendations
Given your investment horizon of five years and the goal to maximize returns, consider the following:

Diversified Approach
PPF: Continue investing Rs 1.5 lakhs annually for the tax-free, guaranteed returns.
Equity Mutual Funds: Allocate a portion of your funds to equity mutual funds for higher potential returns. This balanced approach mitigates risks while leveraging growth opportunities.
Regular Monitoring
PPF: Monitor interest rates and contributions.
Equity Funds: Regularly review fund performance and market conditions.
Consultation with a Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalized advice, considering your financial goals, risk tolerance, and tax implications. They can help you create a balanced investment strategy that aligns with your objectives.

Conclusion
Investing Rs 1.5 lakhs annually in PPF offers stable, tax-free returns with minimal risk. However, equity mutual funds can provide higher returns, albeit with greater risk and tax implications. A diversified approach, combining both PPF and equity mutual funds, can balance safety and growth. Consulting a CFP will help tailor your investment strategy to meet your financial goals effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 15, 2024Hindi
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Relationship
I am 50 years old and got married 15 years ago. I am a very spontaneous sort of a guy and enjoy life, partying etc. I was also very active socially.My wife being the complete opposite put a stop to all that once we got married. She also does not display any affection and has no interest in physical intimacy. She is just concerned with her housework.We also have lot of differences in mental attitude & intellectual abilities. At no stage will we ever seperate, however, I am unhappy with her nature. She has lot of friends, however is always at daggers drawn with in her in laws. We had to stay separately for 6 months, and I tried looking for love else where, however after a couple of months, I realised, that I missed her. I am in a quandary. Despite requesting her to work on our relationship, I get no response. Please advise on how to proceed.
Ans: Dear Anonymous,
I understand you are in a tough spot. But it's nice to see that after all those years of differences, you still have genuine feelings for her. I strongly suggest considering marriage counseling. From your description of your marriage, it seems to be there have been issues from the very beginning of it. It's been too long and now those issues must've become deep-rooted. Seeing a professional can be a game-changer. They can guide you out of this slump more methodically and help you navigate the emotions you are feeling right now. It can also help you understand the reasons for your wife's disinterest and handle it better.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 02, 2024Hindi
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Relationship
Hii, I have an love marriage after 9 years of dating and 6 years, 2 children post marriage, my little one is 11 months old now. My husband has an affair upto chatting to someone in his company, his junior but in different department, when my Lil one was 1 month old, we had in a rough patch then due to child birth and family drama. When I saw it and confronted him, he said he is sorry and won't do it again, we had multiple fights for 3-4 months after then due to same reason, but he mostly listen and consol. It's been a lot of mental torture for me. I love my husband a lot and he is a good person, but sometimes sill I see her msg in his phone asking for small helps or casual msg. She is also married. I am not sure my husband deletes msg or what, I am not able to get over this. Before it, this is was preety much a good relationship. I am highly educated and independent women. I don't want anything form my husband apart from love. What should I do, whenever I tell him I want to just leave and let him have his life, he won't let me somehow. We are having a good physical relationship 2-4 times a week( just to tell where we are). Please help me...I can't overcome that he is making fool of me...
Ans: Dear Anonymous,
I am sorry to hear you are in such a tough spot. I would suggest considering marriage counseling. A professional who can help you both tackle these issues would be helpful in this situation. I understand that it was his mistake and he needs to put the effort to make you trust him again, but since you are still together, you will also have to put in the effort to let it. I know it is difficult and that's where marriage counselor comes in. They can help you navigate these feelings. Moreover, if he is indeed hiding something, therapy can help that come out in the open.

Hope this helps.

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Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Sep 10, 2024Hindi
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Hi, Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. Partner(F28)continuing friendship with a person[M] who had crush on her before marriage considered emotional infidelity? Me(M38) and wife(F37) happily married for 12 years and blessed with one daughter. My wife is having friendship (strictly platonic) with a guy from her 10tlh grade (same class). Before our marriage (she may be doing her college, our relationship just started may be 2 weeks) this guy told her he has genuine interest in her and he want to take the relationship further if she wants, she said she is not interested in a relationship and she got committed, she always saw him as a friend, no other feelings for him and we can be friends if you don't bring any romantic interest again. He never took this talk again ever after and happy to be a friend. They are talking as friends. She got married to me. He also got married. They still do chats once in a month. She introduced me to him and visited his home when we visited his city. He also came to our home once (me and my family was there). She used to update me with chat she had with him and the content they are chatting. I am ok with that When we were talking about our school life and college life 2 years before. She said this guy had crush on her during her college days. I asked her, why did not she tell me this info till now. She said it is not purposely, she does not feel the need to do as the person is not in-appropriate with her and continuing as good friend as promised after she rejected his proposal. I don’t want to create any unnecessary issues as I don’t have any felling or so with him. That time I checked their chats completely, it’s about update about their common friends, their recent travel, their job, meditation courses and the books they read recently. I haven’t seen any flirting or romantic message from either of them. So I am perfectly fine with it and had no problems. I recently came to know about the concept of emotional cheating which is very new to me. Before that cheating to me is only flirting, sexeting and physical sex. I have asked for advice in redddit.com in infedility sub forum about emotional cheating/ emotion affair. There persons are advising like even having friendship with someone who had crush on you is emotional cheating as it is indirectly leading them on you. So with an omission of lie he had crush on her and indirectly leading him on you wife was emotionally cheating on you. This is very much equal to cheating. I do have lots of friends in other gender, but no one had crush on me. Does this count as emotional cheating/affair as she did not mention he had crush on her before marriage? I am little depressed and not able to spend quality time with my wife who is in postpartum depression and take care of our daughter properly as before. Do you guys advise me how to navigate this situation?
Ans: Dear Anonymous,
Are you really going to ruin your happy relationship based on some new term you have learned recently? Emotional cheating and many more terms of the kind will come and go, what truly matters is the truth. She is merely friends with this guy and for your peace of mind, you have even checked their conversations- what part of it looks like cheating to you? If tomorrow, some random person projecting their own insecurities claims that a man speaking to a woman is some "new form" of cheating, would you start believing that? My point is that these are just random opinions of some people- it isn't the ultimate truth. The entire context matters. This man had a crush on your wife, she rejected it, and now they are just friends. I find absolutely no misconduct or infidelity in this. The fact that none of your friends had a crush on you does not factor in at all. Moreover, your wife is in postpartum depression- that should be your biggest concern but here you are, giving more importance to the random 2 AM thoughts of some people you don't even know. Please rethink if you are being fair to your wife- the mother of your child.

Best Wishes

...Read more

Ravi

Ravi Mittal  |395 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 05, 2024

Asked by Anonymous - Oct 26, 2024Hindi
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Relationship
I (30M) am looking for Arranged Marriage Prospects. My Family has found a Prospect (27F) who seems like a Good Match, she's Well Educated, Earning Well & from the same Community. I haven't yet met her in Person, but connected with her on Social Media Platforms & interacting regularly. Recently, I scrolled through her Instagram Profile (It's a Public Profile). She seems to be a very Sociable Person, she has shared many Photos of herself, Partying/Travelling along with her Friends. My Problem is that she seems to like Wearing Clothes which are Revealing. She has shared many Photos/Videos, in which she's skimpily dressed (including some Bikini Photos at Beach/Swimming Pool). She also has a Pierced Navel Ring & Tattoos on some Private Parts like Chest, Hips, Thighs & Lower Back, which she flaunts proudly on Social Media. Though, I am not Judging her Character, based on her Choice of Clothing, but seeing all these made me a little Uncomfortable, as I am a very Modest & Simple Person myself. I have not discussed this issue with my Parents, as they have a very good opinion about her (which I don't want to Ruin). But I've discussed with some of my closest Friends (of both Genders) & some of them have Chided me for being so Judgemental. They suggested me to meet her atleast once in person, to understand what's her Character/Personality like. Shall I give it a try or Reject her Politely at this stage itself, without wasting any more Time (either her or mine)? Or am I being too Superficial to Judge a Woman, just based on her Social Media Profile, without even meeting her once, personally (This is what some of my closest Female Friends opined)? Please suggest me how to proceed with this Prospect in Arranged Marriage.
Ans: Dear Anonymous,
I know it might come off as you being judgmental of her choice of dressing, but you have a right to form an opinion in your mind, especially since in your case, you might be marrying the person. As long as you are not making up your mind about her based on her dressing, forcing her to dress the way she wants, or thrusting your opinion on her, it's alright. It's human nature to be a bit jerked by the choices others make that we won't make ourselves. Having said that, I believe meeting her once in person can be good for you; you might have a new perspective- both about her and on life. But no one can force you to do either. My suggestion is that do what you think is right- if you are sure you will reject this alliance based on her choice of clothes, even if she is the nicest person on the face of the earth, meeting up might be a waste of time. But if you think you are open to changing your mind, go for it.

I would also like for you to remember one important point if things work out between the two of you- do not try to push your opinions on dressing and change the way she is after getting married. That would not be fair. In case, you start hoping that she will change and fit YOUR mold of the perfect woman, I would strongly suggest keeping that thought in check.

Best Wishes.

...Read more

Radheshyam

Radheshyam Zanwar  |1026 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 05, 2024

Asked by Anonymous - Nov 05, 2024Hindi
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Career
I'm 18 years old and currently preparing for neet as a dropper student. I'm from bihar but I live in haryana since my childhood. I have a boyfriend, he is doing btech and it has been 1.5 years since we are together we love each other he supports me in everything but the problem here is I lied him about my birthplace and told him that I belong to UP as UP is a bit better place than bihar. Idk i just feel ashamed to tell anyone that I'm from bihar so I just tell everyone that I'm from UP. Now I'm feeling very guilty in my own that I lied to him about such a basic and important thing and yesterday he Also mentioned that his mother never want a bihari girl, and he is a punjabi. I just don't know what should I do how will he react after knowing the truth and also I'm afraid that he will broke up with me.. I'm also having my neet exam in 6 months. I planned that i will tell him after my exam but I'm just feeling too guilty that I'm hiding this thing from him
Ans: Hello.
Keep mum for the next 6-7 months. Keep a safe distance from your boyfriend. Focus only on NEET preparation. Try to excel in NEET. Wait till the results are out. If you score well and get admitted to Govt Medical College, then open up in front of your boyfriend. He and his family members will accept you because you are becoming a doctor! But after taking the NEET examination, if you feel that you can't score as expected, then tell the truth to your boyfriend. If he loves you from the bottom of his heart, he will forgive you. But if not. then you assume that god has saved you from him!
Last but not least:- Dedicate your 24 hours only for NEET preparation. This time will never come in your life again. You can be a KING in just a few days with solid preparation and will get lifelong respect in society. The bright future is in your hands and not in the hands of your boyfriend.
Best of luck with your upcoming NEET Examination.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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