Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Mihir Tanna |825 Answers |Ask -Follow

Tax Expert - Answered on Aug 23, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Manoj on Aug 23, 2022Hindi

Money

Dear Sir, I have missed to file my individual ITR filing for the Asst. Year 2021-22 (FY: 2020-21) having refund of TDS approximately Rs 25,000.

Is there any way to file the delayed ITR for the year ended 31.03.2021 (AY: 2021-22)? If possible kindly advise how to file it.

Ans: You may file applications for condonation of delay in filing returns claiming refund as per provisions of Sec 119(2)(b) of the Income-tax Act. As per Circular 9/2015, the Principal Commissioners of Income-tax shall be vested with the powers of acceptance/rejection of such applications/claims.

The powers of acceptance/rejection of the application will be subject to conditions like verification of income/loss declared and/or refund claimed and case is of genuine hardship on merits.

Once your application is accepted and order is passed by Principal Commissioners of Income-tax u/s 119, you will be able to file Income Tax Return at www.incometax.gov.in (external link).

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.

MoneyReply

You may like to see similar questions and answers below

Mihir Tanna |825 Answers |Ask -Follow

Tax Expert - Answered on Apr 01, 2023

Question by Asit - Mar 29, 2023Hindi

Money

I missed filing my Individual professional ITR by 31st december 2022 for Assessment year 22-23. What should I do now

Ans: You can file updated return u/s 139(8A) of Income Tax Act. However, you can not claim refund/claim loss in updated return. In case of tax liability, you have to pay 25% additional tax and file updated return on or before 31.03.2024.

Mahesh Padmanabhan |120 Answers |Ask -Follow

Tax Expert - Answered on May 03, 2023

Question by lokesh - Apr 09, 2023Hindi

Money

Hi, I have filed my ITR OF FY 2021-22 in the month of August 22. But while filling the same I forget to fill 10E for arrears received of previous financial years. Now as the date of filing revised ITR is already over is there is any way through which I can claim my relief.

Ans: Hi Lokesh
Please try filing a rectification to the ITR filed for AY 2022-23 and file the Form 10E before you file the rectification.

Mihir Tanna |825 Answers |Ask -Follow

Tax Expert - Answered on Jul 21, 2023

Question by vasudevan - Jul 21, 2023Hindi

Money

Hi Sir, I have been abroad for the past two years and came back only two months ago. Hence I was not able to file the IT returns for the year 2021-22. How do I proceed to file for that year. Anyhow I have filed IT returns for the next year that is 2022-23.

Ans: Updated return u/s 139(8A) can be filed within 2 years. However, updated return can not be filed if it is nil return or loss return or for claiming refund.

Mihir Tanna |825 Answers |Ask -Follow

Tax Expert - Answered on Dec 06, 2023

Question by Aslam - Aug 11, 2023Hindi

Money

I have filled ITR manually for A.Y 2013-14 claiming Refund of Rs 500000 ,the return was not processed within the due date by ITO, in mean time several times i am demanding for refund but no valuable answer was given, what further remedies i can opt for?

Ans: Please contact CPC and try to identify reason for the not processing return and confirm if Jurisdictional officer have power to process the return or CPC.

1800 103 0025 (or)

1800 419 0025

+91-80-46122000

+91-80-61464700

Latest Questions

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Question by Narendra - May 10, 2024Hindi

Money

Hello Ulhas, Hope you are doing good. My current age 35, I am planning to invest as SIP 60K monthly for 15 years. My goal is 2 crore after 15 years. Below are the schemes I choose. Kindly review and suggest changes if any Midcap Fund Motilal Oswal Midcap Fund Direct-Growth 4K, Mahindra Manulife Mid Cap Fund Direct - Growth 4K, Smallcap Fund Axis small cap direct growth 4k, Canara robecco small cap 4K, quant small cap 4K, Nippon small cap 4K, Mid and Largecap Mirae Asset Emerging Bluechip fund 4K, Axis Growth Opportunities Fund Direct - Growth 4K, Multicap Mahindra Manulife Multi Cap Fund Direct - Growth 4K, HDFC Multi-Cap Fund Direct - Growth - 4K, Mirae Asset Multicap Fund Direct - Growth 4k, Canara Robeco Multi Cap Fund Direct - Growth 4K, Flexi Parag Parikh Flexi Cap Fund Direct-Growth 4K, Quant Flexi Cap Fund Direct-Growth 4K, Value Tata Equity PE Fund Direct-Growth - 4K

Ans: Hello,

It's great to hear about your investment plan. Let's review your chosen schemes and make some suggestions:

Midcap Funds (Motilal Oswal, Mahindra Manulife, Axis Small Cap, Canara Robecco, Quant, Nippon): Midcap and small-cap funds have the potential for high growth but come with higher volatility. Consider consolidating your investments into 2-3 well-performing midcap and small-cap funds to reduce overlap and manage risk better.
Mid and Large-cap (Mirae Asset Emerging Bluechip): This fund provides a blend of mid and large-cap exposure, offering stability and growth potential. It's a good choice for diversification.
Multicap Funds (Mahindra Manulife, HDFC, Mirae Asset, Canara Robeco): Multicap funds provide diversification across market segments and flexibility to capitalize on opportunities across market capitalizations. Your selection offers a good mix of well-established funds in this category.
Flexi Cap Funds (Parag Parikh, Quant): Flexi-cap funds offer flexibility to invest across market caps based on market conditions. Your chosen funds provide diversification and align with your investment strategy.
Value Fund (Tata Equity PE Fund): Value funds focus on undervalued stocks with the potential for long-term growth. Consider the performance track record and investment philosophy of this fund before investing.
Overall, your portfolio is well-diversified across various market segments, which is essential for managing risk and maximizing returns. However, having such a large number of funds may lead to over-diversification and complexity. Consider consolidating your investments into a more streamlined portfolio with a focus on quality funds with consistent performance track records.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Regularly review your portfolio's performance and make necessary adjustments to stay aligned with your financial goals. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific needs and objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Question by Shivanshu - May 10, 2024Hindi

Money

I am 24 and investing 60k per month in stock and MF. My current saving is 12L . I am planning to build a Hostel in my native place by 30 which will give me approx 50k per month. Is this a good idea?

Ans: Starting a hostel can indeed be a lucrative business venture, especially considering the rising demand for affordable accommodation, especially in areas with educational institutions or commercial hubs. Here are some factors to consider:

Market Research: Conduct thorough market research to understand the demand for hostel accommodation in your native place. Evaluate factors such as location, competition, target market, and potential occupancy rates.
Financial Feasibility: Assess the financial feasibility of your hostel project. Consider startup costs, construction expenses, operational costs, and potential revenue streams. Ensure that your projections are realistic and factor in contingencies.
Regulatory Compliance: Familiarize yourself with the regulatory requirements and legal procedures for setting up and operating a hostel. Obtain necessary permits, licenses, and approvals from local authorities to avoid any legal hassles in the future.
Management and Operations: Determine how you'll manage the hostel efficiently. Consider aspects such as staff hiring, property maintenance, security measures, and customer service. Developing a robust management plan is crucial for the success of your venture.
Risk Management: Identify and mitigate potential risks associated with the hostel business, such as fluctuating occupancy rates, property maintenance issues, regulatory changes, and economic downturns. Having a risk management strategy in place can safeguard your investment.
Financial Planning: Evaluate the financial implications of starting a hostel on your personal finances. Assess whether you have sufficient capital to fund the project or if you'll need to secure financing through loans or investors. Consider the impact of this investment on your overall financial goals and risk tolerance.
Before proceeding with your hostel venture, I recommend consulting with industry experts, financial advisors, and legal professionals to gain insights and guidance. With careful planning, thorough research, and diligent execution, starting a hostel could be a rewarding endeavor.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Question by Amar - May 10, 2024Hindi

Money

Hi Ram, I invest in PPF, VPF & have also bought shares of Accenture via ESPP mode. But I want to go for mutual funds as I have heard that it gives handsome returns. Funds like Parag parikh flexi cap funds, Quant mid cap funds, Hdfc flexi cap funds, Nippon India small cap funds & mirae assets large cap funds are under my investigation. Could you please give your expert view on this? Thanks, Amar

Ans: Hello Amar,
It's great to see your interest in diversifying your investment portfolio with mutual funds. You're already on the right track with your investments in PPF, VPF, and shares via ESPP mode. Let's evaluate the mutual fund options you're considering:
• Parag Parikh Flexi Cap Fund: This fund adopts a flexible approach, investing across market capitalizations and geographies. Its global exposure can provide diversification benefits and potentially higher returns.
• Quant Mid Cap Fund, HDFC Flexi Cap Fund, Nippon India Small Cap Fund: These funds focus on mid and small-cap segments, known for their growth potential. However, they also come with higher volatility and risk. It's essential to assess your risk tolerance before investing significantly in these funds.
• Mirae Asset Large Cap Fund: Large-cap funds like these offer stability and consistency in returns. While they may not provide explosive growth like mid and small-cap funds, they offer reliability, making them suitable for investors with a lower risk appetite.
When choosing mutual funds, consider factors such as your investment horizon, risk tolerance, and financial goals. Diversification across different fund categories can help mitigate risk while maximizing returns.
As a Certified Financial Planner, I recommend consulting with a professional to create a well-balanced investment portfolio tailored to your specific needs and objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Question by Souhreed - May 10, 2024Hindi

Money

Hello - Please assess my mutual fund portfolio. Below are the details: Age-31yrs; Portfolio Age - 7 years (started with a lesser number of funds in 2017 at 5k); Amount Invested - 16.45L Current Value - 25.70L; Monthly SIP - 85k; Portfolio Annualized Return - 20.20%; Increase in SIP - 5-10% annually; Goal - 15cr by 2042; (a).SBI Blue Chip Fund-4k (b).Mirae Asset Large Cap Fund-1k (c).ICICI Prudential Large and Midcap Fund-10k (d).SBI Large and Midcap Fund-10k (e).HDFC Mid-Cap Opportunities Fund-10k (f).KOTAK SMALL CAP FUND-5k (g).Nippon India Small Cap Fund-5k (h).ICICI Prudential Value Discovery-5k (i).HDFC Balance Advantage Fund-5k (j).PARAG PARIKH FLEXI CAP FUND-25k (h).UTI NIFTY INDEX FUND GROWTH PLAN-5k

Ans: Your mutual fund portfolio demonstrates a commendable commitment to long-term wealth accumulation, especially given the significant growth in value and the impressive annualized return of 20.20%. Let's assess your portfolio components and make some recommendations:
1. SBI Blue Chip Fund: With a conservative approach, this fund provides stability and growth potential through investments in large-cap companies. Your allocation of 4k seems reasonable for diversification.
2. Mirae Asset Large Cap Fund, ICICI Prudential Large and Midcap Fund, SBI Large and Midcap Fund: These funds offer exposure to both large and mid-cap segments, providing diversification across market capitalizations. Your allocations are well spread out, contributing to portfolio resilience.
3. HDFC Mid-Cap Opportunities Fund, KOTAK SMALL CAP FUND, Nippon India Small Cap Fund: These funds target mid and small-cap segments, which historically offer higher growth potential. However, they also come with increased volatility. Considering your risk appetite, you might want to review your allocations and ensure they align with your risk tolerance.
4. ICICI Prudential Value Discovery: This fund follows a value-oriented investment strategy, focusing on undervalued stocks with the potential for long-term growth. It adds depth to your portfolio diversification.
5. HDFC Balance Advantage Fund: This dynamic asset allocation fund aims to provide stable returns by adjusting equity exposure based on market valuations. It serves as a hedge during market downturns, enhancing portfolio stability.
6. PARAG PARIKH FLEXI CAP FUND: Known for its flexible investment approach across market capitalizations, this fund complements your portfolio well. Its exposure to international equities adds diversification benefits.
7. UTI NIFTY INDEX FUND GROWTH PLAN: While index funds offer low-cost exposure to market indices, they lack the potential for outperformance compared to actively managed funds. Given your diversified portfolio, it's advisable to review the need for this fund and potentially reallocate the investment to actively managed funds with higher growth potential.
Considering your goal of achieving 15cr by 2042, it's crucial to maintain a disciplined approach towards savings and investment. You're already on the right track with your increasing SIP contributions annually. Regularly review your portfolio's performance and rebalance if necessary to stay aligned with your long-term objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 06, 2024Hindi

Money

Hi sir I am 42 year old and have a lumpsum amount of 40lakh to invest but have no idea where to invest.Currently paying 22500 monthly sip in mutual fund. I am thinking of investing in property or SWP or pension plan. Kindly guide me to choose right option or you have any other option which you can suggest. My goal is to save money for my child's higher education and lively hood for me after retirement.

Ans: I appreciate your proactive approach to financial planning. With your lump sum amount of 40 lakh and ongoing SIP investments, you're in a good position to enhance your financial portfolio. Considering your goals of saving for your child's higher education and securing your livelihood post-retirement, let's explore your options:
1. Property Investment: While property investment can offer long-term appreciation potential, it also comes with significant costs, illiquidity, and maintenance hassles. Given your goals and the unpredictability of the real estate market, it might not be the most suitable option.
2. SWP (Systematic Withdrawal Plan): SWP can provide you with a regular income stream by redeeming units from your mutual fund investments. It's a flexible option that allows you to tailor the withdrawal amount according to your needs. However, the sustainability of SWP depends on the performance of your underlying investments.
3. Pension Plan: Opting for a pension plan can help secure a steady income stream during your retirement years. It offers the benefit of guaranteed payouts, but the returns may be lower compared to other investment avenues. Additionally, pension plans may lack flexibility in terms of contributions and withdrawals.
Considering your age and goals, I'd suggest exploring a combination of options:
• Continue SIPs: Maintain your ongoing SIPs to capitalize on rupee cost averaging and benefit from long-term compounding.
• Diversified Mutual Fund Portfolio: Allocate a portion of your lump sum amount to diversify your mutual fund portfolio across equity and debt funds, aligning with your risk tolerance and investment horizon.
• Emergency Fund: Set aside a portion of your lump sum for an emergency fund to cover unforeseen expenses.
• Term Insurance and Health Insurance: Ensure you have adequate insurance coverage to safeguard your family's financial well-being.
• Regular Financial Reviews: Periodically review your investment portfolio and adjust your strategy as needed to stay on track towards your goals.
As a Certified Financial Planner, I recommend consulting with a professional to create a customized financial plan tailored to your specific needs and objectives.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Question by Prajwal - May 06, 2024Hindi

Money

I would need your little help with the Goal-based investments. I am doing goal-based investments and suppose I have 3 different goals - Child's education, Buying a house, and Generate Post-retirement monthly income. So, should we consider these as individual goals and allocate mutual funds to each of these separately? If yes, while allocating funds to these different goals, can we keep the same MF in two different goals? For example, can I invest in the "ICICI Prudential Bluechip Fund - Direct Plan" fund into two different goals that I have? How much % of Equity should I plan for each term duration: Long-term (20 years), Medium-term (8-10 years), and Small-term (5 years).

Ans: When it comes to goal-based investments, it's essential to treat each goal separately to ensure clarity and focus. Each goal has its unique timeline, risk tolerance, and financial requirements.

Allocating mutual funds to each goal individually helps tailor your investments to meet the specific needs of that goal. However, you can use the same mutual fund for different goals if it aligns with the respective timelines and risk profiles.

For instance, if a mutual fund fits the risk profile and time horizon of both your child's education and post-retirement income goals, it's feasible to invest in it for both goals.

There are some advantages to consider direct funds, and the cost savings can be significant in the long run. However, there are some potential benefits to using a regular MFD:
Advantages of Investing Through a Mutual Fund Distributor (MFD):
• Personalized Advice: MFDs can be helpful for beginners or those who lack investment knowledge. They can assess your risk tolerance, financial goals, and investment horizon to recommend suitable mutual funds. This personalized guidance can be valuable, especially if you're new to investing.
• Convenience: MFDs handle all the paperwork and transactions on your behalf, saving you time and effort. They can help with account setup, SIP registrations, and managing your portfolio across different funds.
• Investor Support: MFDs can be a point of contact for any questions or concerns you may have about your investments. They can provide ongoing support and guidance throughout your investment journey.

Regarding asset allocation, the percentage of equity you should plan for each term duration depends on various factors such as your risk tolerance, time horizon, and financial goals.

For long-term goals like retirement planning or your child's education (20 years or more), a higher allocation to equity may be suitable, given the potential for higher returns over the long run.

For medium-term goals (8-10 years), a balanced approach with a mix of equity and debt investments can help manage risk while aiming for reasonable growth.

For short-term goals (5 years or less), a more conservative approach with a higher allocation to debt investments may be prudent to safeguard capital and ensure liquidity when needed.

Remember, asset allocation is a dynamic process that may require periodic review and adjustments based on changes in your financial situation and market conditions.

As a Certified Financial Planner, I encourage you to consult with a professional to develop a personalized investment plan tailored to your specific goals, risk tolerance, and financial circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 06, 2024Hindi

Money

I'm 22, fresher with 5LPA about to relocate to Bangalore for job. Before I start my career I want to have a clear overview regarding my finances and how to manage them, where do I invest and how much. Looking over long terms goals maybe a house or retirement by 50 to 60 years. What all shall I do to keep in my mind to achieve these goals. Kindly suggest and guide, open to all such suggestions. Thank you!

Ans: Congratulations on starting your career journey! Here's a roadmap to manage your finances and achieve your long-term goals:
1. Budgeting: Start by creating a monthly budget to track your income and expenses. Allocate a portion of your income towards savings and investments.
2. Emergency Fund: Build an emergency fund equivalent to at least 3 to 6 months' worth of living expenses. This fund acts as a safety net during unexpected financial setbacks.
3. Debt Management: Avoid accumulating high-interest debt. If you have any existing loans, prioritize paying them off to reduce financial stress and free up funds for savings and investments.
4. Investment Strategy:
• Start investing early to benefit from the power of compounding.
• Consider investing in equity mutual funds for long-term growth potential. Diversify your portfolio across different asset classes to manage risk.
• Explore options like Public Provident Fund (PPF) and Employee Provident Fund (EPF) for retirement planning. Contribute regularly to these accounts for tax benefits and long-term wealth accumulation.
5. Goal Setting:
• Identify your long-term financial goals, such as buying a house or retiring by age 50 to 60.
• Break down these goals into smaller, manageable targets. Set specific timelines and savings targets for each goal.
6. Real Estate: If buying a house is a long-term goal, start researching the real estate market in Bangalore. Consider factors like location, budget, and future growth prospects before making a purchase decision.
7. Retirement Planning:
• Start contributing to retirement accounts like EPF and consider opening a separate retirement savings account or investing in retirement-focused mutual funds.
• Aim to save at least 15% to 20% of your income towards retirement to maintain your desired lifestyle post-retirement.
8. Continuous Learning: Stay informed about personal finance and investment strategies. Attend workshops, read books, or seek guidance from a Certified Financial Planner to make informed decisions.
9. Review and Adjust: Regularly review your financial plan and investment portfolio. Adjust your strategy as needed based on changes in your life circumstances, goals, and market conditions.
By following these steps and staying disciplined with your finances, you can pave the way towards a secure financial future and achieve your long-term goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 06, 2024Hindi

Money

I'm 52 years male with 2 crore self house, shop worth 1.8 crore possession with 18 months , a garage commercial on rent receivable of 40k every month, approx 2 crore with cash in hand , want to accumulate a corpus of 10 Crore with 10 years , having no income right now. No loans and liabilities i have currently.Monthly expenses of 1.25 to 1.5 laks per month Wife 42 years , Sons 18 & 11 years , daughter 21 years. Medical insurance of 15 laks. Please advice an achievable plan of investment.

Ans: With your assets and goals in mind, let's craft a plan to accumulate a corpus of 10 Crore in 10 years:

Firstly, let's leverage your existing assets:

Your self-owned house and shop are valuable assets that can provide stability and potential appreciation over time.
The commercial garage rental income adds to your monthly cash flow, which is a positive aspect for your financial planning.
Given your current cash reserve:

Utilize a portion of your cash reserve for immediate expenses and emergencies.
Allocate the remaining amount strategically towards investments that align with your long-term goal.
Considering your lack of current income:

Explore investment avenues that offer a balance of capital appreciation and regular income generation.
Focus on creating a diversified investment portfolio to spread risk and maximize returns over the long term.
For your monthly expenses:

Ensure that your investment strategy takes into account your monthly expenditure needs, aiming for a balance between growth and liquidity.
Regarding your family's financial security:

Continue to maintain adequate medical insurance coverage to safeguard against unforeseen health expenses.
Consider allocating a portion of your investment towards education and future financial needs of your children.
Remember:

Regularly review your investment portfolio and adjust your strategy as needed to stay on track towards your goal.
Seek guidance from a Certified Financial Planner to fine-tune your investment plan and address any concerns or uncertainties.
With diligence and a well-thought-out strategy, achieving your financial goal is within reach.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 04, 2024Hindi

Money

I'm 41 year old with below investments - EPF corpus so far - 1cr - SGB - 10 lacs - PPF - 10 lacs , SSY- 6 lacs - FDs - 75 lacs - Mutual funds ( spread across various caps) - 70 lacs - Stocks - 75 lacs - ESOP ( vested ) - 35 lacs - rate of current savings (90K MF monthly, plus additional 40 lacs annually) - Land bought - current value 50 lacs (long term with holding period around 20 years - backup for kids marriage expenses ) My near term expenses a) buying a home (around 1.7 cr) b) kids education - need to build a corpus of 2 Cr in next 5 years ( kid is 6 year old currently) c) building a retirement corpus to maintain 1.5 lacs expenditure monthly ( inflation adjusted) want to retire at 55 and considering life span of 75 years. Please guide me any steps towards these goals . Ideally would like to retire at 50 but would put a strain with respect to kids college education.

Ans: Given your current financial position and goals, it's crucial to create a strategic plan to achieve them effectively. Let's break it down:
For your near-term expenses:
• Allocate a portion of your savings towards the home purchase, considering a down payment and subsequent EMIs.
• To build a corpus for your child's education, consider investing in a mix of equity and debt instruments with a focus on growth.
For your retirement goals:
• With a desire to retire at 55 and a lifespan goal of 75 years, you have around 14 years to build your retirement corpus.
• Utilize a combination of equity, debt, and balanced mutual funds to achieve long-term growth while mitigating risk.
• Regularly review and adjust your investment portfolio to align with changing life stages and market conditions.
Considering your current investments:
• Diversify your portfolio further to spread risk and maximize returns.
• Explore options like systematic investment plans (SIPs) in mutual funds to benefit from rupee cost averaging and compounding over time.
Regarding your desire to retire at 50:
• While ambitious, it's essential to weigh the potential strain on your child's education corpus.
• Evaluate the feasibility of early retirement by assessing your current savings rate, expected returns, and future income streams.
Remember:
• Keep a close eye on your investments and make informed decisions based on your financial goals and risk tolerance.
• Consult with a Certified Financial Planner periodically to review your plan and make necessary adjustments.
Wishing you success in achieving your financial aspirations!
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ramalingam Kalirajan |1886 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 06, 2024Hindi

Money

Hi, I am 41 year old with my wife and 3 kids. I have already invested 390000 in various mfs and currently sip of 15,000 pm. Also I am investing 50000 per year in NPS from past 3 years I want to retire at age of 52 year. My current expense is 50,000 pm. How do I get 70,000 after my reimbursement. Please advise. Thanks.

Ans: It's commendable that you're planning ahead for your retirement while supporting your family. Let's strategize:

Firstly, kudos on your investments in mutual funds and NPS. They're valuable assets that can help you achieve your retirement goal.

Your SIP of 15,000 per month and NPS contributions of 50,000 annually demonstrate a proactive approach towards building your retirement corpus.

To bridge the gap between your current expenses and desired post-retirement income, you need to focus on increasing your savings and optimizing your investment strategy.

Consider boosting your SIP contributions or exploring additional investment avenues to accelerate wealth accumulation. A Certified Financial Planner can assist you in identifying suitable investment options aligned with your risk tolerance and goals.

It's crucial to review your portfolio periodically and rebalance it as needed to ensure optimal performance and risk management.

While direct funds offer lower expense ratios, investing through a Mutual Fund Distributor (MFD) with a CFP credential provides personalized advice and ongoing support, enhancing the effectiveness of your investment strategy.

As retirement approaches, consider gradually shifting your investment allocation towards more conservative options to protect your capital and generate stable income post-retirement.

Remember, retirement planning is a journey, not a destination. Stay disciplined, continue saving diligently, and seek professional guidance to navigate the complexities of financial planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x