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Samraat

Samraat Jadhav  |2376 Answers  |Ask -

Stock Market Expert - Answered on Feb 13, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
debasis Question by debasis on Feb 09, 2024Hindi
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JP Power is steadily rising over last few weeks.. What could be the ideal point to release it from my portfolio. its avg price was Rs 21 and I have 1300 nos

Ans: 30-35 max

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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  |9574 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Money
I have a question I earning average 60000/my expenses 30k currently I am single ,how I plan for future
Ans: You are single and earning Rs 60,000 per month.
Your current expenses are Rs 30,000.
That leaves a monthly surplus of Rs 30,000.
You are in a strong position to plan early.

Let’s build a 360-degree financial plan for you.

Understand Your Financial Priorities First
You must now set long-term and short-term goals.
Without goals, saving becomes directionless.

Short-term goals may include vacation, bike, or emergency fund.

Long-term goals include retirement, home, and family protection.

Mid-term goals may include career change, studies or business.

List them out on paper.
Decide how much and when each goal is due.
This gives you clarity for next steps.

Step 1 – Build a Strong Emergency Fund
This is your first safety step.
You must save 6 months’ expenses minimum.

Your monthly expense is Rs 30,000.

You need Rs 1.8 lakh in emergency fund.

Save it in sweep-in FD or liquid mutual fund.

Don’t touch it for investments or shopping.

This will protect you during job loss or health issues.

Step 2 – Protect Yourself with Insurance
You must get basic term and health insurance.
Do this even if you are healthy today.

Take Rs 50 lakh to Rs 1 crore term insurance.

Premium is low at your age.

Take Rs 5–10 lakh health cover.

Add personal accident cover if possible.

Avoid policies that mix investment with insurance.
Stay away from ULIPs, endowment and money-back plans.

Step 3 – Start a Structured Monthly Investment Plan
Now you must grow your money regularly.
Start SIP in diversified mutual funds.

Start with Rs 15,000 monthly SIP.

Use mix of flexi-cap, large-mid cap and hybrid funds.

Allocate part in multi-asset funds.

Avoid sectoral or small cap funds in beginning.

Your money will grow better with diversification.
Don’t invest based on returns alone.
Fund selection must match your goals and risk.

Step 4 – Avoid Index Funds at This Stage
Index funds are not suitable for your profile now.

Index funds copy the market blindly.

They don’t protect when market falls.

No fund manager support during crash.

Not ideal if you are starting your journey.

Use actively managed funds instead.
They give better guidance and strategy.
Avoid DIY investing without experience.

Step 5 – Avoid Direct Plans for Mutual Funds
You may be tempted to invest in direct funds.
But this may cause more harm than gain.

Direct plans give no personal guidance.

No one alerts you when fund underperforms.

Switching and rebalancing gets delayed.

Risk of emotional mistakes during market dips.

Instead, invest through regular plans via MFD with CFP support.
This ensures you stay on track always.
Expert advice will help in long term wealth creation.

Step 6 – Allocate Savings for Specific Goals
Once your SIP begins, split it across goals.

Rs 5,000 for retirement SIP

Rs 5,000 for home or travel

Rs 5,000 for wealth-building fund

As you define new goals, assign separate SIPs.
This gives clarity and purpose to each fund.
Also, avoid mixing long-term and short-term money.

Step 7 – Review Your Plan Every 6 Months
Financial planning is not a one-time task.
Review and adjust regularly.

Track fund performance every 6 months.

Rebalance between debt and equity yearly.

Step-up your SIP by 10–15% every year.

Adjust SIPs if goal changes.

Your MFD with CFP guidance can help review yearly.
They also help manage taxation and redemptions.

Step 8 – Don’t Depend on Gold or Real Estate
Many invest in gold or property emotionally.
But they are not efficient wealth creators.

Gold gives low long-term return.

No income from gold.

Real estate has low liquidity.

Maintenance and paperwork are hassles.

Instead, focus on financial assets.
They are liquid, regulated and transparent.

Step 9 – Follow a Budget and Stay Disciplined
You earn Rs 60,000 now.
You spend Rs 30,000.
Don’t let expenses rise just because income does.

Set monthly saving target.

Use budget app or diary.

Avoid random purchases and EMIs.

Keep one debit card and one credit card.

Automate SIP and investment deduction.

Discipline in spending creates long-term wealth.
Enjoy life but control impulse spending.

Step 10 – Tax Planning from Year One
Don’t ignore taxes in early years.
Start tax planning early.

Use ELSS mutual fund to save tax.

PPF is also good for long-term.

Avoid endowment or ULIP for tax-saving.

Track capital gains from mutual funds yearly.

Use your MFD-CFP to manage tax-efficient withdrawals.
This helps retain more return post-tax.

Step 11 – Upgrade Financial Knowledge Slowly
Don’t try to become expert overnight.
Start with basics.

Read 1–2 personal finance books.

Avoid YouTube hype and hot tips.

Understand compound interest, asset classes and goal planning.

With time, your understanding will grow.
This helps you take better decisions later.

Step 12 – Plan for Future Responsibilities
You are single now.
But responsibilities will grow later.

You may get married in 5–7 years.

Children’s education will come after that.

Parents may need health support.

So, start building a family safety net now.
Invest in long-term SIPs with such future in mind.
This avoids last-minute stress.

Step 13 – Don’t Stop Investments During Market Fall
Market will go up and down.
Many people panic and stop SIPs.

SIP must continue in market dips.

That’s when you get more units.

Recovery will give faster gains.

Stay invested for long-term compounding.
Don’t take fund decisions emotionally.
Let MFD with CFP monitor portfolio for you.

Step 14 – Avoid Insurance Policies that Look Like Investment
Many people buy LIC or ULIP plans.
Thinking it is saving and safety both.

Returns are very low

No flexibility to exit

Long lock-in periods

Poor transparency

If you already hold such policies, check surrender value.
Consider surrendering and reinvesting into mutual funds.
Pure term insurance is better.

Step 15 – Set Personal Milestones
Financial life needs emotional connection also.
Set simple milestones.

First Rs 1 lakh in mutual fund

Emergency fund ready

Rs 1 crore goal by age 40

Zero debt lifestyle

Celebrate these with small joys.
That will keep you motivated and consistent.

Step 16 – Have a Written Financial Plan
Everything looks easy in mind.
But it slips if not written.

Create one document

Mention goals, amounts, dates

Update it every year

This becomes your guide.
Your MFD with CFP can help make and monitor this.

Step 17 – Understand Mutual Fund Tax Rules
New rules apply from 2024–25.

Equity MF LTCG above Rs 1.25 lakh taxed at 12.5%

STCG taxed at 20%

Debt MF taxed as per your income slab

Plan redemptions with these rules in mind.
Don’t redeem funds just because they are profitable.
Tax impact must be checked.

Step 18 – Create a Retirement Vision Today
Retirement looks far.
But must be planned from now.

Start Rs 5,000 SIP for retirement

Increase it every year

Let it grow till age 60

Don’t touch it before that

This will create Rs 2–3 crore corpus easily.
Financial freedom comes from starting early.

Finally
You are in a golden position.
Rs 30,000 monthly saving potential is a strong start.
Use it wisely with right structure.

Don’t experiment with your future.
Take support from an MFD backed by a Certified Financial Planner.
That ensures long-term success and peace of mind.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9574 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Asked by Anonymous - Jul 05, 2025Hindi
Money
So my networth is like 45cr but most of it almost 42cr are in real estate alone only 3cr are invested (liquid assets) and my monthly invome is 5-6 lakhs. I want to buy the mercedes eqb which costs around 80 lakhs so can i afford it?
Ans: Current Financial Strength

You have a net worth of Rs.45 crore.
Out of this, Rs.42 crore is in real estate.
Your liquid investments are only around Rs.3 crore.
Your monthly income is Rs.5–6 lakhs.
You are considering buying a car worth Rs.80 lakhs.

This gives us a good snapshot. Now, let us analyse further.

Real Estate Dominance in Portfolio

Over 90% of your wealth is in real estate.
This creates concentration risk.
Real estate is illiquid.
It cannot be sold quickly in emergencies.
Selling takes time, cost and negotiation.
Price discovery is also inconsistent.

It also lacks passive cashflow unless rented.
Maintenance cost, tax, and legal issues arise often.
This limits your flexibility to act on new opportunities.

So, while your net worth is high, most of it is not quickly usable.

Liquidity Analysis

Your investable assets are only Rs.3 crore.
This is your true financial flexibility.
Liquid investments can be easily accessed or rebalanced.
They provide freedom to act without pressure.

If Rs.80 lakhs is used for a car, Rs.2.2 crore is left.
That’s a reduction of more than 25% of your liquid corpus.

This needs serious thinking.

Income vs Lifestyle Costs

Monthly income is Rs.5–6 lakhs.
Annual income comes to around Rs.60–72 lakhs.
Buying an Rs.80 lakh car exceeds one year of income.

That’s a major financial outflow.

Luxury cars also have high maintenance costs.
Battery replacements for EVs are costly.
Insurance is higher for luxury models.
Road tax and registration alone will be several lakhs.

So, the car cost doesn’t end at Rs.80 lakh.
There are hidden and recurring costs too.

Should You Use Your Liquid Investments?

Using Rs.80 lakh from Rs.3 crore is unwise.
That reduces your emergency cushion.
It restricts future investment opportunities.

As a Certified Financial Planner, I suggest:

-- Don't disturb core liquidity for lifestyle assets
-- Liquid assets should serve emergencies and goals
-- Avoid asset depletion for depreciation-based items

How to Think About Luxury Car Purchase

Let us look at this from different angles:

Can you afford it technically?
Yes, if we go by net worth and income, you can.

Should you afford it now?
No, if it reduces your liquidity significantly.

Is it ideal to spend this way now?
No, not until you rebalance your portfolio first.

Better Financial Planning Approach

Before spending Rs.80 lakhs, consider these steps:

-- Rebalance your overall asset allocation
-- Reduce your real estate exposure gradually
-- Build a diversified mutual fund portfolio
-- Keep a strong emergency fund intact

Only then, allocate for aspirational spending like luxury cars.

Build a 360° Financial Plan First

-- Review and assess all insurance policies you hold
-- If you own ULIPs or traditional LIC policies, surrender them
-- Reinvest the proceeds in mutual funds via a CFP channel
-- Build separate goals-based portfolios
-- Maintain a buffer for retirement, family, and healthcare
-- Plan for tax-efficient withdrawals in future
-- Set aside a lifestyle upgrade fund

Then, if your lifestyle fund permits Rs.80 lakh, go ahead.

Disadvantages of Index Funds

If you’re considering index funds to build liquidity:

Index funds lack active risk management.
They follow the market blindly.
They do not beat the market, only mimic it.
In falling markets, they fall just as much.
You miss the chance to protect downside.
No flexibility to change strategy in tough times.
Sectoral risks are not filtered or controlled.

On the other hand:

Actively managed mutual funds bring expertise
Fund managers adapt based on market cycles
There is strategy, research, and flexibility
Long-term wealth creation is more disciplined

Always invest via Certified Financial Planner through regular plans.

Disadvantages of Direct Plans

If you’re thinking about investing in direct plans:

Direct plans may seem cheaper, but they lack support
You lose out on guidance and customised planning
You may over-diversify or under-allocate
Monitoring and rebalancing becomes your burden
Tax planning can be ignored unknowingly
Goal tracking becomes inconsistent
Emotional decisions may override logic

On the other hand, investing via MFD + CFP channel:
-- You get 360° advice
-- Holistic goal mapping
-- Portfolio reviews and rebalancing
-- Timely switches and corrections
-- Behavioural coaching to stay disciplined

Regular plans through CFP-guided MFDs are smarter long-term options.

Luxury Purchase and Depreciation

Cars are depreciating assets.
The moment it leaves the showroom, value drops 15–20%.
After 5 years, value drops over 50%.
There is zero resale appreciation.
This is different from an investment.

You must not fund a depreciating item by reducing appreciating investments.

Car Loan Option Evaluation

If you consider using a car loan:

Loan EMI for Rs.80 lakhs will be around Rs.1–1.2 lakh monthly
That is 20% of your income
Add insurance, fuel, service, etc.
Total monthly cost may touch Rs.1.5 lakh
That’s 25–30% of income. Very steep.

Loan EMI reduces your savings capacity.
It adds pressure during market downturns or income dips.

Avoid loans for lifestyle purchases.

Tax Efficiency Concerns

If you redeem mutual funds to buy the car:

Check if gains are long-term or short-term
LTCG above Rs.1.25 lakh is taxed at 12.5%
STCG is taxed at 20%
Add surcharge and cess as applicable

So, you may lose additional lakhs to tax.
This is another reason to preserve investments.

Recommendation: Defer or Rethink Purchase

Right now, buying the Mercedes EQB is not ideal.
It will reduce your liquidity and disturb your asset mix.
Focus on balancing your portfolio first.
Increase mutual fund investments through a CFP.
Allocate for lifestyle only from surplus gains.

This way, you buy luxury, but not at the cost of your future.

Final Insights

Your net worth is high, but flexibility is low.
Don’t equate wealth with free spending.
First, make your money truly work for you.
Build liquidity, not just asset value.
Let investments grow and generate more passive income.
Only then use part of surplus for luxury items.
Delayed gratification brings more financial security.

You are on a strong base. Let us make it even stronger.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9574 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Asked by Anonymous - Jul 05, 2025Hindi
Money
I am a middle level manager-about to be laid off. Current monthly take home 3.2 lacs. Pending home loan 37 lacs. Retirement corpus 1.2 Cr, Share 15 lacs, eNPS 10, MF 8 lacs SIP 35K. One daughter Higher edu budget 20 lacs after 1 year. If not getting job for next 6 months to 1 year how do I plan?
Ans: Your financial snapshot gives a good base to work with.
Let’s approach it from every angle now.

You are a middle-level manager, earning Rs 3.2 lakh per month.
You expect a job loss soon.
You have a Rs 37 lakh home loan.
Retirement corpus is Rs 1.2 crore.
You have Rs 15 lakh in shares.
eNPS is Rs 10 lakh.
Mutual funds are Rs 8 lakh.
You invest Rs 35,000 monthly through SIP.
Your daughter needs Rs 20 lakh for education in a year.

Your main concern is:

How to survive job loss for next 6–12 months?
How to manage home loan, SIPs and daughter’s education?

Let us now give a 360-degree plan with clear next steps.

Immediate Focus: Build 12-Month Survival Strategy
You must now protect your cash flow.
First priority is keeping household running smoothly.
Second priority is ensuring daughter’s education happens.
Third priority is avoiding damage to retirement plan.

Let us first divide your total resources.

Current Asset and Liability Overview
Home loan outstanding – Rs 37 lakh
Retirement fund – Rs 1.2 crore (locked till 60)
Shares – Rs 15 lakh (liquid but volatile)
eNPS – Rs 10 lakh (not for short term)
Mutual funds – Rs 8 lakh (liquid)
SIP – Rs 35,000 monthly (can be adjusted)
Daughter’s education – Rs 20 lakh needed in 12 months

You need to arrange about Rs 20–25 lakh for next one year.
This includes home EMI, household needs and daughter’s education.
We now plan how to get this.

Step 1: Cut All Unnecessary Outflows Now
You must preserve cash now.
Start by stopping or reducing outflows that can wait.

Reduce SIPs temporarily.
Stop all luxury or lifestyle spending.
Avoid any new insurance or policy.
Delay house upgrades, travel or vehicle buying.
Postpone gold or gift purchases.

This will give breathing space to your budget.
Focus only on basic monthly expenses.

Step 2: Pause or Reduce SIPs Strategically
Rs 35,000 SIP is useful long-term.
But in this 6–12 month period, reduce it wisely.

Don’t stop completely.
Reduce to Rs 5,000–10,000 max.
Pause small-cap and thematic funds first.
Continue balanced or hybrid SIPs if possible.
Once income resumes, restart SIPs gradually.

Don’t feel guilty about reducing SIPs.
This is a survival phase, not a growth phase.

Step 3: Secure Emergency Fund from Liquid Assets
You have Rs 8 lakh in mutual funds.
Also Rs 15 lakh in direct equity shares.
Use this to create an emergency fund.

Set aside Rs 10–12 lakh now
Keep it in low-duration debt mutual fund
Or in liquid FD with break option
Use this money for next 6–12 months if needed

Do not depend on eNPS or retirement corpus.
That is not meant for short-term use.

This buffer gives you mental peace during job hunt.

Step 4: Plan for Daughter’s Education Cost (Rs 20 lakh)
This is your biggest near-term goal.
You have one year to arrange this money.

Allocate Rs 5–7 lakh from shares, carefully
Keep Rs 10–12 lakh in short-term debt mutual fund
Use rest from matured FDs, if any
If you still fall short, use education loan as backup
But avoid dipping into retirement funds

Please don’t take personal loan for this.
Education loan is better structured and gives tax benefit.

Also, discuss with your daughter openly.
Involve her in course and college cost discussions.
Try to reduce burden without compromising on quality.

Step 5: Manage Home Loan EMI Smartly
EMI is your biggest fixed expense now.
Assume Rs 30,000–40,000 EMI per month.

If surplus exists, pay only interest part for 6 months
Speak to lender about restructuring EMI temporarily
Ask for moratorium or tenure extension
Use liquid MF or shares to pay EMI if needed
Avoid default at all costs—it hits credit score

Don’t panic about home loan.
Banks support genuine borrowers facing job loss.

Step 6: Avoid Direct Shares for Monthly Needs
You hold Rs 15 lakh in stocks.
Don’t depend on it fully for expenses.
Stock market can fall anytime.

Use this only when:

Market is stable
You need to fund education
Liquid MF is already exhausted

Also, book profits from over-performing stocks now.
Shift some money to hybrid funds or debt funds.

Step 7: Don’t Touch Retirement Corpus
Your Rs 1.2 crore is your old-age fund.
Do not use this for current needs.

Avoid PF withdrawal unless critical
Don’t shift this into high-risk options
Keep this untouched for now
Protect this like your lifeline

This will support you from age 60 onward.
Preserving this ensures your future security.

Step 8: Don’t Rely on Index Funds or Direct Plans Now
If your SIPs are in index funds, please stop them.
They offer no protection in market crashes.
You need funds with downside protection.

If SIPs are direct mutual funds:

No expert advice during market panic
No one to guide you on which fund to redeem
No help in switching or rebalancing
No planning for daughter’s goal or tax

Instead, use regular mutual funds through MFD backed by CFP.
They offer personalised reviews and guidance.
They help you navigate this tough time with clarity.

Step 9: Keep Family and Spouse Informed
Speak to your spouse now.
List all expenses, EMIs, assets together.

Discuss budget cuts jointly
Share your job search plan
Involve her in goal planning
Plan medical and child-related spending together

This will build emotional support and avoid confusion later.

Step 10: Medical and Term Insurance Review
You are in transition. Don’t lose your protection.

Check if company insurance will end
Buy a family health cover separately
Take term insurance if not already taken
Don’t buy investment-cum-insurance policies now
Avoid ULIPs or endowments

Insurance must be pure and separate from investments.
Health shocks during job gap can ruin the plan.

Step 11: Create an Income Action Plan
You can’t sit idle for 6–12 months.
Start creating a new income source.

Update resume and LinkedIn today
Tap ex-colleagues, clients, hiring firms
Accept freelance or consulting assignments
Take certification or upskilling in your field
Cut ego—focus on earning something for family

Any small income now reduces pressure on savings.
Aim to bounce back stronger, even if salary is less initially.

Step 12: Meet a Certified Financial Planner Now
Your case needs structured planning.
You have multiple moving parts:

Child education
Job loss phase
Loan management
SIP and goal reallocation
Emergency liquidity
Retirement safety

A Certified Financial Planner will:

Create year-wise drawdown plan
Monitor your funds and cash flow
Guide SIP reduction and restarts
Help with taxation and rebalancing

Don't try to manage this alone.
Get expert help for peace of mind.

Finally
This is a critical period.
But with calm and planning, you will be safe.
Protect your present first.
Don’t sacrifice your daughter’s education.
Don’t damage your retirement base.
Avoid emotional decisions.
Make structured financial moves.

Once you’re back in job or income stream, rebuild slowly.
Start SIPs again.
Top up your buffer fund.
And plan future goals with a professional.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9574 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Money
Hi Sir, I'm 30 year's old, I'm planning to invest 10k per month for my 3 months baby boy future education and and for my retirement,currently investigating 6K per month in MF, PARAG PRATIK FLEXI CAP FUND 2.5k and UTI NIFTY NEXT 50 INDEX FUND 1K, NIPPON INDIA SMALL CAP FUND 2K and also in SBI Gold ETF Rs 500, kindly provide diversified investment plan for remaining 4k, and suggest me any changes required in existing investment.
Ans: Thank you for sharing your investment details clearly.

You are 30 years old.
You are investing Rs 10,000 per month.
Your goal is your child’s education and your retirement.
Currently, you invest Rs 6,000 per month in mutual funds and ETFs.
You also invest Rs 500 in a gold ETF.
You want to allocate the remaining Rs 4,000 in a better way.
Let’s now study your present plan and give a 360-degree improvement.

Review of Your Existing Investment
You are currently investing in:

Parag Parikh Flexi Cap Fund – Rs 2,500
UTI Nifty Next 50 Index Fund – Rs 1,000
Nippon India Small Cap Fund – Rs 2,000
SBI Gold ETF – Rs 500

Let’s evaluate each.

Issues in Current Investment
Index Fund Problem (UTI Nifty Next 50):
This is an index fund. It copies the market blindly.
It gives no protection when the market falls.
There is no fund manager strategy involved.
It may look simple but lacks downside control.
Better to switch to an actively managed fund.

Direct Investment Weakness:
If you are investing in direct plans, that’s risky.
You don’t get expert advice during market changes.
You miss out on portfolio reviews.
Direct funds are only for experienced investors.
Better to invest through a MFD supported by a CFP.

Too Much in Small Cap (Nippon Small Cap – Rs 2,000):
Small caps are volatile. They give high returns but are risky.
Overexposure can disturb your long-term goal.
Keep small cap under 15% of total SIP amount.

Gold ETF – Rs 500:
It is okay to hold 5–10% gold.
But gold ETF is not tax efficient.
No regular income or compounding benefit.
You may hold gold, but don’t increase allocation.

Suggested Diversified Allocation (Rs 10,000 Total SIP)
Let’s now give a clean, diversified structure.

New Suggested Monthly SIP Plan:

Flexi Cap Fund (existing) – Rs 2,500
Balanced Advantage Fund – Rs 2,500
Large & Mid Cap Fund – Rs 2,000
Small Cap Fund (existing) – Rs 1,500
Gold Savings Fund – Rs 500
Multi Asset Fund – Rs 1,000

Let’s explain why this mix works well.

Why These Funds Make Sense for You
Flexi Cap Fund:
Already part of your portfolio.
It gives long-term capital growth.
Fund manager adjusts equity exposure as per market.
Good for retirement and child's education.

Balanced Advantage Fund:
Acts like shock absorber in your portfolio.
Switches between equity and debt smartly.
Gives stability during market fall.
Ideal for new investors.

Large & Mid Cap Fund:
Provides strong growth with moderate risk.
Invests in top companies across sectors.
Helps balance your small cap exposure.

Small Cap Fund:
You already have one.
We suggest you reduce to Rs 1,500 monthly.
Still gives growth, but risk is managed.

Gold Savings Fund:
Continue with Rs 500 monthly.
Gold protects against inflation.
Also useful for long-term diversification.
Don’t exceed 5–10% of overall SIP.

Multi Asset Fund:
Combines equity, debt, and gold in one fund.
Balances risk in different market cycles.
Gives smooth returns over 10+ years.

Important Notes for Your Plan
Split Your Goals Clearly:
Allocate Rs 5,000 monthly for child’s education.
Allocate Rs 5,000 monthly for retirement.
Keep goals separate.
Don’t mix children’s goals with your retirement.

Avoid Index Funds Now:
You are still early in investment journey.
Index funds have no safety in crashes.
Actively managed funds do better in volatile times.

Avoid Direct Funds:
You may miss fund switch or rebalancing need.
Use a MFD backed by a Certified Financial Planner.
They will give yearly reviews and goal tracking.
Even if cost is slightly more, support is worth it.

Don't Increase Gold SIP Now:
Rs 500 is enough in gold.
Focus more on equity and hybrid funds.
Gold gives safety, but not wealth creation.

Future Steps After One Year
After 12 months, you should:

Review performance of all SIPs
Check if income has increased
Increase SIP by 10–15% yearly
Start separate child education fund via goal-based SIP
Keep emergency fund of 6 months expenses
Get health insurance and term insurance if not done

Common Mistakes to Avoid
Don’t stop SIP during market fall
Don’t overinvest in small cap for fast returns
Don’t invest based on YouTube videos or news tips
Don’t forget to link goals to your SIPs
Don’t buy insurance for investment purpose

If you have ULIP or LIC policy with savings, consider surrender.
Reinvest in mutual funds for better growth.

Finally
You have started early, which is excellent.
Your goals are long-term and realistic.
Now you need structure and discipline.

Use regular, guided mutual funds.
Avoid index and direct plans.
Keep reviewing with a professional yearly.

With Rs 10,000 monthly, invested wisely,
your child’s education and your retirement will be well covered.

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

...Read more

Nayagam P

Nayagam P P  |8413 Answers  |Ask -

Career Counsellor - Answered on Jul 10, 2025

Career
Sir, I got 77%ile in JEE CRL-337105 and 90% in class 12th from DBSE(delhi state board).And I belong to OBC-Ncl category , I am resident of delhi so prefer college in delhi. Pls tell college with CSE as per my results. Due to financial constraint and less intrest in PCM what will be beneficial for me to do BCA with open university or regular . And what will be the future career impact of this choosing BCA over Btech.
Ans: Aman, With a 90% score in Delhi Board Class 12 and a 77th percentile in JEE Main (CRL-337105) under OBC-NCL, confirmed admission to BCA is available at these Delhi institutes, each offering accredited curricula, dedicated computer labs, experienced faculty, robust placement support (60–80% over three years) and strong industry linkages:

Guru Gobind Singh Indraprastha University, Sector 16C Dwarka, Delhi.
Maharaja Surajmal Institute, Rohini, Delhi.
Jagannath Institute of Management Studies, Rohini, Delhi.
JIMS Vasant Kunj, Vasant Kunj, Delhi.
JIMS Technical Campus, Kalkaji, Delhi.
Chanderprabhu Jain College of Higher Studies, Najafgarh Road, Delhi.
Jagannath International Management School, Vasant Kunj, Delhi.
Institute of Information Technology & Management, Janakpuri, Delhi.
Vivekananda Institute of Professional Studies, Janakpuri, Delhi.
Jagan Institute of Professional Studies, Rohini, Delhi.

Recommendation: Pursue BCA at GGSIPU Dwarka for its direct university affiliation, comprehensive IT infrastructure and high placement momentum. As an alternative, choose Maharaja Surajmal Institute, Rohini for its strong industry tie-ups, consistent campus-driven internships and supportive scholarship options. All the BEST for Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9574 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Asked by Anonymous - Jul 04, 2025Hindi
Money
Hi I am 33 years old have a kid 2 year old. Me and my brother are in the same business. Its a seasonal business of stoles and kurtis. We mostly do job work. Turnover is around 1.25Cr and emis are 1.5L per month. We both arent able to save any money. We are always broke. If we check on paper we are making prifit but we dont where the money is going. Been doing business for 10 years now. Things were smooth till covid but after that its been downhill. I have orders. But no return. What should I do?
Ans: Running a family business with seasonal income is tough.
You’re 33, have a 2-year-old child, and handle business with your brother.
Turnover is Rs 1.25 crore yearly, but you’re still struggling with cash.
EMIs are Rs 1.5 lakh monthly, but you feel broke every month.
Though you’re making profit on paper, there’s no visible cash return.

This is a common problem in many small businesses.
Let’s now understand and restructure it with a 360-degree approach.

Know the Real Problem First
Your business shows profit but no cash.
This is a cash flow issue, not just profit issue.

Possible reasons:

Customers not paying on time

Too much money stuck in inventory

High credit to customers

Low margin despite high turnover

High fixed costs and personal withdrawals

EMI outflows not synced with income

You need to separate profit from cash flow.
And build control over every rupee.

First Fix: Separate Personal and Business Money
You and your brother must stop mixing accounts.

Have separate bank accounts

One for business, one for personal

Pay yourself a fixed salary monthly

Avoid direct personal spending from business

This step brings clarity.
You’ll see clearly how much money the business truly keeps.

Second Fix: Create a Business Budget
Don’t run operations without numbers.

List fixed monthly expenses: rent, salaries, EMI, utilities

Mark out seasonal expenses like fabric or transport

Track peak and lean months

Allocate money month by month

Break your Rs 1.25 crore into monthly inflow plan

This helps avoid surprises.
Also helps plan purchase and credit well.

Understand Where the Money Is Going
Do a 12-month cash flow audit.

You’ll see:

Where cash comes in

Where it goes out

How much is stuck in stocks

How much is with customers

What EMIs or interest is eating your profit

Most likely, your profit is going into inventory and credit.

Set Strict Customer Payment Rules
In seasonal business, timely customer payments matter most.

Don’t give credit without timeline

Offer small discounts for early payments

Keep payment follow-up strict and regular

Use digital tools to track pending invoices

If customers pay late, your entire cycle collapses.
Your money is in their hands, not yours.

Review Your EMI and Loan Structure
Rs 1.5 lakh monthly EMI is very heavy.
Ask these questions:

Can you refinance to longer term?

Can you get working capital loan instead?

Are you using EMI money for capital asset or daily expense?

Are you servicing loans from personal savings?

Many times, business loans taken emotionally create long-term stress.
Structure them clearly with a planner.

Inventory Is Silent Enemy
Clothes, fabrics, stoles, and kurtis pile up fast.

Too much stock locks up cash

You see profits in books, but cash is stuck in goods

Unsold stock hurts margins

Do an inventory health check:

What sells fast?

What sits for months?

Which items give real profit?

What designs are dead stock?

Don’t buy new stock unless old one sells.
Work on a lean inventory model.
Move from stock-based to order-based model if possible.

Take Salary Like an Employee
You and your brother must draw regular salary.

Fix monthly salary for each

It brings discipline and fairness

Avoids emotional withdrawals

Ensures business pays you—not drains you

Any bonus or profit should be once a year. Not random.

Cut Personal Lifestyle Leakage
If personal expenses are high, business suffers.

List all personal outflows

Reduce wasteful lifestyle habits

Live like a salaried person

Don’t increase lifestyle when sales go up

Also avoid using business credit for personal gadgets, trips, or loans.

Work on Increasing Margins, Not Just Sales
Turnover is Rs 1.25 crore. That sounds big.
But if margins are thin, you get no benefit.

Focus on:

Higher margin products

Value-added work (like custom orders)

Bulk orders that pay upfront

Lowering costs through better suppliers

Don’t run after more orders blindly.
Run after profitable and paid orders only.

Introduce a Basic Accounting System
If not using one, adopt digital books.

Tally, Zoho Books, QuickBooks, or Marg software

Track income, expenses, stock, and customer dues

Reconcile bank accounts every month

Even better, hire a part-time bookkeeper.
Let numbers guide you—not gut feeling.

Create a Business Emergency Fund
Businesses also need a buffer. Like personal savings.

Try to build Rs 3–5 lakh in business reserve

It should sit in separate account

Don’t touch it for stock or expenses

Use only in real emergency

This gives peace and protects business during slow months.

Engage with a Certified Financial Planner
You’re in business.
But personal finances matter too.

A Certified Financial Planner helps with salary planning

Helps set up your SIPs, retirement, kid’s education fund

Can also structure loans better

Gives you a business-personal plan

Your future needs a balance between business and personal wealth.

Don’t Use Index Funds or Direct Funds Now
If you’re thinking of investing:

Avoid index funds – no protection during crash

Avoid direct mutual funds – no advisor support

You’re already busy with business

You need a regular plan via a CFP-backed MFD

That brings discipline and guidance

Right now, clearing business mess is priority.
Then start small SIPs through professional support.

Simple Steps to Start From This Week
Open separate business and personal accounts

Track all money in and out for next 30 days

Speak to CA about EMI or loan restructuring

Do stock check – list what’s moving, what’s not

Start Rs 5,000 monthly SIP with planner, if possible

Fix personal salary for both you and brother

Build Rs 1 lakh cash reserve in 6 months

Start with action. Not emotion.

Finally
You’re not alone. Many small business owners are in the same trap.
You’ve been working for 10 years. That shows strength.
Now it’s time to bring structure. Discipline. Clarity.

With small changes and a monthly plan, things can improve.

Remember: turnover means nothing without cash in hand.
Run your business with control. Live your personal life with goals.
Keep them separate. And give your family a future of freedom.

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  |8413 Answers  |Ask -

Career Counsellor - Answered on Jul 10, 2025

Career
Is MIT Mechatronics (Manipal Campus) a Good Option to OPT for ? What are the Future carrer prospects for Mechatronics Engineers in India ? Job Opportunities, Salary Packages ? Please share your views
Ans: Raj, MIT Manipal (Manipal, Karnataka) offers a four-year B.Tech in Mechatronics Engineering through its Department of Mechatronics, backed by NBA accreditation, PhD-qualified faculty and industrial-grade labs for robotics, sensors, drives, PLCs and AI/ML. Placements have ranged from 60 – 70% over the past three years, with an average package of ?11.76 LPA. Graduates enter diverse roles—mechatronics technician, robotics engineer, automation engineer, instrumentation and control systems engineer or computer systems analyst—across manufacturing, automotive, aerospace, healthcare and consumer-electronics sectors. Entry-level salaries typically start at ?4–6 LPA, rising to ?7–11 LPA in mid-career and ?12–20 LPA at senior levels, with cities like Bengaluru, Pune and Mumbai offering premium packages. Strong demand stems from Industry 4.0, smart-factory automation, UAVs, medical robotics and autonomous vehicles, with over 4 000 openings on LinkedIn in India.

Recommendation: Opt for MIT Manipal Mechatronics for its robust industry-grade infrastructure, solid placement momentum, and versatile cross-disciplinary curriculum to launch a dynamic engineering career. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |8413 Answers  |Ask -

Career Counsellor - Answered on Jul 10, 2025

Career
Dear sir want to know about jaypee noida sec 62 branch for ee vlsi. How is this branch? And what are the possibilities of career opportunities. I also have another offer from bml munjal, cse. What should I prefer?
Ans: Ritu, Jaypee Institute of Information Technology in Noida offers a specialized B.Tech in Electronics Engineering (VLSI Design and Technology) with a cohort of 60 students, guided by PhD-qualified faculty in AICTE-approved, NIRF-ranked labs—including dedicated VLSI fabrication and characterization facilities with RF sputtering and IV/CV testing tools. Over the past three years it has averaged an 8.71 LPA package and branch-aligned placements within a 93% overall placement drive with recruiters like Cadence, Intel and STMicroelectronics. Roles include IC design engineer, verification engineer and semiconductor test engineer. BML Munjal University in Gurugram provides B.Tech CSE with AICTE and NAAC accreditation, modern IoT, digital and Hero training labs, industry-integrated curriculum and a dedicated placement cell achieving an 87% placement rate, sending graduates to Deloitte, Google, Samsung and Amazon in software development, data engineering and product management roles. Its project-based pedagogy and internships bolster coding culture and startup incubation.

Recommendation: Prefer Jaypee Noida EE VLSI for niche semiconductor design pathways, research-grade labs and PSU/tech-EC recruitment guarantees. Choose BML Munjal CSE if you seek broader software career trajectories, stronger coding culture, versatile AI/ML training and high campus-drive consistency in premier tech firms. All the BEST for Admission & a Prosperous Future!

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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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