Hi Sir I lost my job 3 years before and i am currently unemployed, recently i had withdrawn my epf amount of roughly 18 lacks which i want to invest for kid future professional studies in approx 8-9 years of time frame. I want to invest the epf amount in a popular flexi cap company. I need your advice whether i should invest the amount in lumpsum in one go or invest in some liquid fund and invest it in a staggered manner. Also plz guide what would be the tax implications if i invest the money in liquid and do monthly STP to the flexi cap fund.

Ans: You should withdraw your EPF(with interest)and invest in PMVVY, SCSS, Postal MIS(15, 30, 15, total 60L) since these come with sovereign safety.

Then look at FDs but prefer Big/Govt banks and do split it into small ticket size across banks.

Ensure adequate healthcare support for self and spouse in retirement.

SWP from MFs is also an option to get periodic payments from MF corpus but you will need advice from an MF advisor to plan this.

*Investments in mutual funds are subjected to market risks. Please read all scheme related documents carefully before investing

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Ans: Depends on multiple things, your risk profile, time horizon, time to retirement, goal etc. there is not enough data for me to help but I can surely say, you mutual funds. Add to your existing mutual fund investments. Use the same schemes you have invested in & dont add more schemes. Split the investment into 4 parts & deploy over the next 6 months on every fall you have.

Ans: Congratulations on your retirement! Deciding whether to withdraw your PF amount from EPFO or leave it there depends on various factors. Here are some considerations to help you make an informed decision:
1. Financial Goals: Evaluate your immediate and long-term financial goals. If you have other sources of income and don't need the PF amount immediately, leaving it invested in EPFO can provide you with a steady income stream through interest earnings.
2. Risk Tolerance: Consider your risk tolerance and investment preferences. EPFO offers relatively low-risk options with assured returns, making it suitable for conservative investors. If you prefer safety and stability over potentially higher returns, keeping your funds in EPFO might be a good option.
3. Investment Alternatives: Assess the available investment options and their potential returns. While FDs offer safety and guaranteed returns, they may provide lower returns compared to other investment avenues like mutual funds or stocks. If you're comfortable exploring other investment options and are willing to take on some level of risk, you may consider diversifying your portfolio.
4. Tax Implications: Understand the tax implications of withdrawing your PF amount. EPF withdrawals are tax-free if made after five years of continuous service. However, interest earned on FDs is taxable as per your income tax slab. Consider consulting a tax advisor to understand the tax implications of your decision.
5. Liquidity Needs: Assess your liquidity needs and emergency fund requirements. If you anticipate any unexpected expenses in the near future, maintaining liquidity by keeping your funds in EPFO may be beneficial.
6. Inflation Consideration: Keep in mind the impact of inflation on your savings. EPFO interest rates may not always beat inflation, affecting the real value of your savings over time. Explore investment options that offer potential returns that outpace inflation to preserve your purchasing power.
Ultimately, the decision should align with your financial goals, risk tolerance, and current financial situation. It's advisable to consult with a Certified Financial Planner or investment advisor who can provide personalized guidance based on your individual circumstances.
Best wishes for your retirement and your son's studies abroad!

Ans: For your lump sum investment, mutual funds are generally a better option than direct stocks for long-term growth, especially if you prefer lower risk and professional management. Mutual funds offer diversification, which reduces the impact of individual stock volatility. Direct stocks can offer higher returns, but they also come with higher risks and require active management.

Regarding your PF, if you are no longer employed in India, it may make sense to withdraw and invest in mutual funds , as PF interest rates may not match equity market returns over the long term. However, you should factor in your risk appetite before making a decision.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Hello;

How much corpus you want/expect to build in 15 years for higher education needs of your child.

Please clarify.

Thanks;