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Ramalingam

Ramalingam Kalirajan  |8125 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 05, 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
Asked by Anonymous - Jan 02, 2024Hindi
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Hi sir I'm 47 yrs old have 2 kids. for their education and marriage i started investing in mutual fund since 2018.My portfolio is as follows &all are direct fund.1,CANARA ROBECCO SMALLCAP FUND 3000/MONTH 2,EDELWEISS MIDCAP FUND 2500/Month 3MIRAE ASSET LARGE CAP 2500/MONTH 4PGIM FLEXI CAP FUND 2000/MONTH 5PPFAS FLEXI CAP FUND 4000/MONTH 6QUANT ACTIVE FUND 2500/MONTH 7SBI SMALLCAP FUND 3000/MONTH 8SBI MAGNUM MIDCAP FUND 2500/MONTH 9SBI CONTRA FUND 2500/MONTH 10SBI TECHNOLOGY FUND 2000/MONTH 11KOTAK EMERGING EQUITY FUND 3000/MONTH 12HDFC MIDCAP OPPORTUNITY FUND 2500/MONTH SIR my question is that is my portfolio needed any changes? & how much corpus can I accumulate in last 13 years as i will retire at 60. Please reply & thanks in advance. 7 7 SBI SMALL CAP FUND 3000/MONTH

Ans: Your portfolio consists of a diverse mix of mutual funds across various market segments, including small-cap, mid-cap, large-cap, and flexi-cap funds. However, having such a large number of funds may lead to over-diversification and increase the complexity of managing your portfolio.

Consider consolidating your portfolio by focusing on high-quality funds that align with your investment objectives and risk tolerance. Review the performance of each fund relative to its benchmark and peers. If any fund consistently underperforms or deviates significantly from its investment objective, you may consider replacing it with a better-performing alternative.

As for the corpus accumulation, it would depend on various factors such as the performance of the funds, the consistency of your contributions, and market conditions. You may use online SIP calculators to estimate the potential corpus based on your ongoing SIP contributions and expected returns.

Given your retirement goal at age 60, ensure that your investment strategy is aligned with your long-term financial objectives and risk profile. Consider consulting with a financial advisor for personalized guidance tailored to your specific circumstances.
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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I (30M) recently got engaged to my Fiancee (27F) & shared the Photos of our Engagement on Instagram, wherein they were noticed by an old friend of mine. He recognised my Fiancee & told me some things about her, which startled me. When she was in the Final Year of Engineering, she got an Internship Opportunity in a Reputed MNC, where my Friend was also working. At her Office, most of the Employees & Interns were Male & she was one of the very few Females. Her Manager was a Middle Aged Divorcee. He had offered her a Permanent Job at the Company, after her Internship, in exchange for Sexual Intimacy. Apparently, she had given in & everyone at her Office was aware of the Affair between her & her Boss. Initially, I assumed this to be a Rumour, but still wanted to clarify this with her, even though, I had no Proof except his word of mouth. When I Questioned her, she admitted that, it was indeed the Truth that she had slept with her Boss for her Career Growth. But she also tried to Justify herself, saying that she was a Young & Naive Fresher at that time & the Offer seemed quite Tempting as her Family was going through Financial Difficulties at that point of time. But she also went on to add her narrative that the Affair lasted for just 2 years. During that time, she also used to suffer from Sexual Harassment from other Male Colleagues, as they had assumed that she was an 'Easily Available' kind of Girl who'd sleep with anyone & she had a Hard time, resisting their Sexual Advances. Apparently, my Old Friend was also among those who were trying to Bed her. But she quit working at that Company, as soon as, she got a better offer in another Company, without having to make any Sexual Compromise & since then she'd been working hard for her Career Growth & had never done anything Immoral or Unethical again. Hearing all these things about my Fiancee & my Old Friend, disturbed me greatly. But my Fiancee didn't seem to have any Regrets as she believes that all of it was her Past, which happened more than 5 years ago & it doesn't affect her Present or our Future, in any way. She also reassured me that she would be a Loyal Wife to me after Marriage & would never Sleep with anyone else, under any circumstances. Now I am in Dilemma, whether I should Trust my Fiancee & take a Huge Leap of Faith, by going ahead with the Marriage, as planned, or should I call off the Wedding & try to find some other Woman with a Decent Character? Please advise me.
Ans: 1. Should you trust her as a person - going by what she has said, you should as she has been honest and shared everything with you

2. And if she says she does not have any regrets, more power to her - how will having regrets and feeling guilty justify.

3. We all make mistakes and she did what she did as she was 'single' she did not cheat anyone

4. As for you wanting to marry her or not is your decision...remember you both need to invest in the relationship daily and cannot/should not bring up the past even in disagreements - this is important for you to understand.

All the best in whatever decision you make.

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I am 28 and now my parents are constantly poking me for marriage. It's not like I don't want to get married. I want to but a part of me is also scared. It's not just a new thing for me, being an introvert and a nerd, I never had that much interaction with females in school and college and having worked from home for 5 years now, I barely interacted with anybody from the office either. So I am an extreme noob when it comes to flirting or mixing with girls. My point is, I don't smoke and drink and I would expect the same from my partner. I see my friends smoking, drinking to their fullest and passing out, their male friends holding them by the waist and shoulders and helping them walk, they are staying back at their male best friend's house or going back home late at 2 o'clock in the night... I don't know if that's right or wrong but I am not used to such life. So I would hope my partner stays out of these things. But I don't have a single person in my friend circle who doesn't smoke and drink. So it makes me wonder if at all there are women who refrain from these addictions! What if she turns out to be a gold digger? What if she marries me and after a year, slams fake cases on me and my family and demands a heavy alimony? I would be shattered. I know women have fears too - what if the man turns out to be violent and thrashes her up! We men also have the same fears. Arranged marriage is scary and is a game of luck. Not that love marriage is any better; even though you think you know the other person inside out, the cat comes out of the box only after marriage. I am confused. Can you guide me.
Ans: Dear Anonymous,
I understand where your concerns stem from; and just like you said, women have equal concerns, if not more. But look at all the marriages around you- are they all bad? I would say focus on the good things. And about smoking and drinking- people have their own preferences. Some like it and some don't. I am sure there are many women who are dead against any form of addiction and they can be a good match for you. Having said it all, I would also like to say that you should not get married till you are mentally prepared for it. If it scares you so much right now, it would not be the right decision to get involved with someone and end up projecting your fears on them and doubting them for no reason. Take your time and observe other relationships- see the happy side of it and try to gauge if you want that. I would also say that love marriage might work better for you, because it will have slightly less "surprise element" to it.
But again, do not rush. Let it happen organically. You are only 28.
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Ramalingam

Ramalingam Kalirajan  |8125 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Mar 21, 2025

Asked by Anonymous - Mar 21, 2025Hindi
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Dear Sir, If I invest in NPS tier 2, do I need to pay tax for the entire amount or just for the interest? Do I need to pay interest every year or at the time of the withdrawal? Please help me how the tax would be calculated. Also suggest if I need to consider any other investment instead of NPS tier 2. Thanks and Regards, Srikanth
Ans: NPS Tier 2 is a flexible investment option. However, it does not have tax benefits like Tier 1. The tax treatment of your investment depends on when and how you withdraw.

Tax on Principal vs. Interest

You do not pay tax on the invested amount.
The entire withdrawal amount, including gains, is taxable as per your income tax slab.
Tax at the Time of Withdrawal

The withdrawal amount is added to your annual income.
You will be taxed as per your income tax slab in that financial year.
Taxation Frequency

There is no annual tax on the interest.
Tax is applicable only at the time of withdrawal.
Limitations of NPS Tier 2
No Tax Benefits

Unlike Tier 1, there are no deductions under Section 80C.
Market-Linked Returns with No Exit Benefits

NPS Tier 2 investments are linked to the market.
However, they do not get the same tax advantages as mutual funds.
Liquidity and Lock-in

There is no mandatory lock-in for regular investors.
For government employees, there is a 3-year lock-in.
Not an Ideal Wealth Creation Tool

Returns are uncertain.
Mutual funds provide better long-term tax efficiency.
Better Alternatives to NPS Tier 2
If your goal is wealth creation, consider these options:

Equity Mutual Funds
They offer long-term wealth growth.
Actively managed funds aim for better returns than passive funds.
Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.
Short-term capital gains (STCG) are taxed at 20%.
Debt Mutual Funds
Suitable for stability with moderate returns.
Gains are taxed as per your income tax slab.
More flexible than NPS Tier 2.
Gold ETF
Good for diversification.
Easy to buy and sell.
Gains are taxed as per your income tax slab.
PPF (Public Provident Fund)
A safe, long-term option.
Completely tax-free returns.
Limited liquidity.
Final Insights
NPS Tier 2 does not provide tax benefits.
The entire withdrawal amount is taxable.
Mutual funds offer better tax efficiency and flexibility.
Equity funds can create wealth over 10-15 years.
Debt funds offer stability with better liquidity.
Consider gold ETF and PPF for diversification.
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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