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Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 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 - Jun 20, 2024Hindi
Money

Monthly salary(wife+me) : 2 lakhs Monthly EMI : 74K Mutual funds : 3 lakhs Index funds : 4 lakhs PF : 8 lakhs Properties: 1+ carore value(2 flats+1 plot) I am 33 years old, Wants to retire at 45 years

Ans: It's wonderful that you're planning to retire at 45 years old. Early retirement is a dream for many, and with the right plan, it's definitely achievable. Let’s review your current financial situation and create a detailed roadmap for your retirement.

Current Financial Snapshot
Combined Monthly Salary: Rs 2 lakhs
Monthly EMI: Rs 74,000
Mutual Funds: Rs 3 lakhs
Index Funds: Rs 4 lakhs
Provident Fund (PF): Rs 8 lakhs
Properties: Rs 1 crore+ (2 flats + 1 plot)
Setting Clear Financial Goals
You’re 33 now and aim to retire at 45, which gives you 12 years to build a substantial retirement corpus. Early retirement means you'll need a larger corpus to sustain your lifestyle for a longer period without active income.

Evaluating Your Expenses and Savings
First, it's important to assess your current and future expenses. Your current monthly EMI is Rs 74,000, which is a significant portion of your income. The remaining Rs 1,26,000 should cover your household expenses, savings, and investments. Here’s what you need to consider:

Household Expenses: Track your monthly household expenses meticulously.
Savings Rate: Aim to save and invest at least 30-40% of your monthly income.
Emergency Fund: Ensure you have an emergency fund that covers 6-12 months of expenses.
Investment Strategy
Given your goal, a diversified investment strategy is crucial. Let's explore various investment options:

Mutual Funds
Mutual funds are a great way to build wealth over time. Actively managed funds are preferable over index funds because they can potentially offer higher returns. An experienced fund manager can navigate market ups and downs better than a passive index fund.

Disadvantages of Index Funds
Index funds, though cost-effective, simply mirror the market. They do not outperform it. They also don't adapt to market conditions or changes in economic scenarios. Actively managed funds, on the other hand, strive to outperform the market through strategic asset allocation and stock selection.

Regular Funds through MFD with CFP
Investing through regular funds via an MFD with a CFP credential ensures you get professional advice and personalized service. Direct funds might seem cheaper, but you miss out on the valuable guidance that can help you optimize your portfolio.

Equity Investments
Equity investments are crucial for high returns. Though volatile, they have the potential to significantly grow your wealth. Consider allocating a substantial portion of your investments to equity mutual funds, especially those managed by reputable fund managers.

Debt Instruments
Debt instruments provide stability to your portfolio. These include fixed deposits, bonds, and government schemes. They offer lower returns compared to equities but are essential for reducing risk and ensuring steady income.

Retirement Corpus Calculation
Without diving into specific calculations, here’s how you can approach building your retirement corpus:

Expected Returns: Equities can offer returns around 10-12% annually, while debt instruments may offer around 6-7%.
Inflation: Consider inflation, which erodes purchasing power. Factor in an inflation rate of 6-7% annually.
Savings Rate: Increase your savings rate as your income grows. Direct any bonuses, increments, or windfalls towards your retirement fund.
Managing Your Debt
Your monthly EMI of Rs 74,000 is a significant commitment. Ensure your debt-to-income ratio remains healthy. Paying off high-interest loans quickly can free up more funds for investments. However, home loans often have lower interest rates and tax benefits, so balancing between paying off the loan and investing is key.

Building an Emergency Fund
An emergency fund is your financial safety net. It should be liquid and accessible, ideally kept in a high-interest savings account or a liquid fund. This fund should cover at least 6-12 months of your expenses, ensuring you can handle any unexpected financial challenges.

Insurance Planning
Adequate insurance is essential for financial security. Ensure you have sufficient life and health insurance. Avoid investment-cum-insurance policies like endowment or ULIPs, which often offer lower returns. Instead, opt for term insurance for life cover and invest the rest in mutual funds.

Tax Planning
Effective tax planning can save you a significant amount of money. Utilize tax-saving instruments like ELSS mutual funds, PPF, and NPS. These not only reduce your taxable income but also contribute to your long-term wealth accumulation.

Regular Portfolio Review
Your investment portfolio should be reviewed regularly. This ensures your investments are aligned with your goals and risk tolerance. Market conditions and personal circumstances change over time, and your investment strategy should adapt accordingly.

Retirement Planning
Retiring at 45 means planning for a longer retirement period. Ensure your investments are sustainable and can provide a steady income post-retirement. Consider the following:

Systematic Withdrawal Plan (SWP): This allows you to withdraw a fixed amount from your mutual fund investments regularly, ensuring a steady income.
Post-Retirement Income: Plan for sources of income that will support your lifestyle post-retirement.
Building Wealth with Consistency
Consistency is the key to building wealth. Regular investments, disciplined saving habits, and prudent financial decisions will help you achieve your retirement goal. Avoid the temptation of quick-rich schemes and stick to your long-term plan.

Final Insights
Retiring at 45 is a bold and achievable goal. Focus on a diversified investment strategy, manage your debts wisely, ensure adequate insurance coverage, and regularly review your portfolio. Consulting a Certified Financial Planner (CFP) can provide the expertise needed to navigate complex financial decisions and optimize your retirement planning.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 11, 2024

Asked by Anonymous - Jun 07, 2024Hindi
Money
Hi I am 37 year old and wife is 33 yr old with a total earning of 4 lakh/month. We have a housing loan of 1.8cr, MF worth 10 lakh , PPF - 12 lakh , Life insurance - 20 lakh. Every yr we invest 1 lakh on MF , LIC & Insurance. We have 5 yr old daughter. Planning to retire at 55 with net worth of 10Cr & 1.5Cr for child education.
Ans: Comprehensive Financial Plan for Retirement and Child's Education
Understanding Your Current Financial Situation
You are 37 years old, and your wife is 33. Together, you have a monthly income of Rs 4 lakh. You have a housing loan of Rs 1.8 crore, mutual funds worth Rs 10 lakh, a PPF of Rs 12 lakh, and life insurance cover of Rs 20 lakh. Annually, you invest Rs 1 lakh in mutual funds, LIC, and insurance. You have a five-year-old daughter and plan to retire at 55 with a net worth of Rs 10 crore and Rs 1.5 crore for your daughter's education.

Setting Clear Financial Goals
Retirement Goal
You aim to retire at 55 with a net worth of Rs 10 crore. Considering an inflation rate of 6%, this corpus should be sufficient to support a comfortable lifestyle post-retirement.

Child's Education Goal
You need Rs 1.5 crore for your daughter's higher education. With education costs rising, starting early ensures you achieve this goal without financial strain.

Evaluating Current Investments
Mutual Funds
Your mutual fund portfolio is Rs 10 lakh, with an annual investment of Rs 1 lakh. Mutual funds are crucial for long-term growth due to their compounding benefits.

Public Provident Fund (PPF)
Your PPF balance is Rs 12 lakh. PPF offers safe, tax-free returns and should continue to be part of your portfolio.

Life Insurance
Your life insurance cover is Rs 20 lakh. Ensure this is adequate to cover any unforeseen events. Term insurance may provide higher coverage at lower premiums.

Analyzing Your Housing Loan
You have a substantial housing loan of Rs 1.8 crore. This loan represents a significant financial commitment. Ensure you manage this loan efficiently to avoid financial strain.

Current loan: Rs 1.8 crore
EMI: Calculate based on the interest rate and tenure to manage monthly cash flow effectively.
Enhancing Your Investment Strategy
Increasing Mutual Fund Investments
Mutual funds should form a significant part of your investment strategy due to their potential for high returns. Increase your annual SIP investments to Rs 5 lakh to build a substantial corpus.

Diversified Portfolio
Equity Mutual Funds: High growth potential; allocate 60% of your mutual fund investments here.
Debt Mutual Funds: Lower risk; allocate 20% for stability.
Hybrid Funds: Combine equity and debt; allocate 20% for balanced growth.
Systematic Investment Plans (SIPs)
Increase your SIPs to ensure a disciplined investment approach. A monthly SIP of Rs 40,000 can grow substantially over time.

Calculating Future Value of SIPs
Assuming a 12% annual return, a monthly SIP of Rs 40,000 over 18 years can accumulate a significant amount. Use an SIP calculator for precise future value calculations.

Disadvantages of Index Funds and Direct Funds
Index funds replicate market performance and may lack the potential for higher returns offered by actively managed funds. Direct funds require significant knowledge and time, which may not be suitable for everyone. Investing through a mutual fund distributor ensures professional management.

Utilizing Tax Benefits
Tax-saving Investments
Maximize contributions to tax-saving instruments like PPF, ELSS funds, and NPS. These provide tax deductions under Section 80C and additional benefits under Section 80CCD for NPS.

Efficient Tax Management
Review your investments for tax efficiency. Long-term capital gains on equities are taxed at 10% beyond Rs 1 lakh. Mutual funds provide tax-efficient growth compared to traditional savings.

Insurance Coverage
Adequate Life Insurance
Ensure you have adequate life insurance coverage. A term insurance plan provides high coverage at a low premium, securing your family's financial future.

Comprehensive Health Insurance
With a family of three, having comprehensive health insurance is crucial. Ensure your policy covers all family members and has a high sum insured to protect your savings from medical emergencies.

Planning for Child's Education
Child Education Fund
Start a dedicated education fund for your daughter. Invest in child-specific mutual funds or education plans that offer long-term growth. Starting early ensures a substantial corpus for her higher education.

Emergency Fund
Building a Safety Net
Maintain an emergency fund covering at least six months of expenses. This fund protects against unexpected financial challenges. Consider keeping this amount in a high-yield savings account or liquid mutual funds for easy access.

Managing Your Housing Loan
Efficient Loan Repayment
Consider prepaying your housing loan when possible to reduce the interest burden. Evaluate if refinancing options offer lower interest rates, helping manage EMIs effectively.

Retirement Planning
Creating a Retirement Account
Consider opening a retirement-specific account like the National Pension System (NPS). NPS offers tax benefits and helps build a retirement corpus with professional management. Invest regularly in this account for long-term growth.

Pension Plans
Explore pension plans that provide regular income post-retirement. These plans ensure a steady flow of income and financial security during retirement.

Building a Sustainable Retirement Corpus
Calculating Future Value
Using the earlier example, let’s calculate the future value of your current investments.

PPF: Rs 12 lakh + annual investments for 18 years at 7% = significant growth
Mutual Funds: Rs 10 lakh + Rs 40,000 monthly SIP for 18 years at 12% = substantial corpus
Equity Shares: Assuming 10% annual growth
Total estimated corpus needs to be regularly reviewed and adjusted based on market conditions and personal circumstances.

Regular Review and Rebalancing
Regularly review your investment portfolio. Market conditions and personal circumstances change over time. Rebalancing ensures your portfolio stays aligned with your goals.

Professional Guidance
Consult a Certified Financial Planner (CFP) for personalized advice. A CFP can help create a comprehensive financial plan tailored to your goals. They offer professional insights and strategies to achieve your retirement and education objectives.

Final Insights
Achieving your retirement goal of Rs 10 crore and Rs 1.5 crore for your daughter's education requires disciplined saving and investing. Regularly review and adjust your financial plan. Focus on long-term growth and tax efficiency. With careful planning, you can retire at 55 with financial security and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2024

Asked by Anonymous - Jun 21, 2024Hindi
Money
I'm 33 yrs old have 17 lakhs in mutual fund and 2.5 in shares. My spouse is 38 yrs have 30 lakhs in mutual fund and 1 lakh in shares.all mutual fund are diversified in small,mid cap,flexi cap and blue chip.we have 2 children age 2yrs and 9 yrs. I have monthly income of 40000 spouse is having monthly income of 100000.we also have rent income of 30000. We together want to retire after 5 yrs. Please advice.
Ans: You have Rs. 17 lakhs in mutual funds and Rs. 2.5 lakhs in shares.

Your spouse has Rs. 30 lakhs in mutual funds and Rs. 1 lakh in shares.

Your investments are well-diversified across small, mid, flexi, and blue-chip funds.

Your combined monthly income is Rs. 1,70,000, including Rs. 30,000 from rent.

Your goal is to retire in five years.

This is a commendable aspiration, and I will guide you step-by-step.

Assessing Your Retirement Goals
Retiring in five years requires thorough planning.

First, calculate your expected expenses post-retirement.

Consider your children's education, living expenses, and medical costs.

You need a substantial corpus to maintain your current lifestyle.

Analyzing Your Current Investments
Your diversified portfolio is a great start.

However, review the performance of each mutual fund regularly.

Ensure they align with your financial goals.

Actively managed funds can offer better returns than index funds.

Consider reallocating underperforming investments to better-performing ones.

Maximizing Monthly Savings
Saving aggressively in the next five years is crucial.

Your combined monthly income is Rs. 1,70,000.

Aim to save a significant portion of this income.

Cut down on non-essential expenses.

Increase your investment in high-growth mutual funds.

Enhancing Mutual Fund Investments
Your mutual funds are diversified, which is excellent.

Focus more on flexi-cap and mid-cap funds for higher growth.

Small-cap funds are volatile but can offer high returns over five years.

Blue-chip funds provide stability to your portfolio.

Rebalance your portfolio every year to maintain the right mix.

Benefits of Actively Managed Funds
Actively managed funds can outperform the market.

They provide the flexibility to capitalize on market opportunities.

Experienced fund managers can navigate market volatility better.

Avoid index funds due to their passive nature and lower potential returns.

Avoiding Direct Funds
Direct funds might seem attractive due to lower costs.

However, regular funds through a Certified Financial Planner (CFP) offer better guidance.

CFPs provide valuable insights and help in selecting the best funds.

They assist in aligning your investments with your retirement goals.

Importance of Emergency Fund
Maintain an emergency fund equal to 6-12 months of expenses.

This fund will help you handle unexpected financial needs.

Keep this fund in liquid assets like savings accounts or liquid funds.

It ensures you don’t dip into your retirement corpus in emergencies.

Children's Education Planning
Your children are 2 and 9 years old.

Education costs will rise significantly in the coming years.

Start investing in dedicated children's education plans.

Consider equity mutual funds for long-term growth.

Review these investments regularly to ensure they meet future needs.

Health and Life Insurance
Ensure you have adequate health insurance coverage.

Medical expenses can deplete your savings quickly.

Life insurance is crucial, especially with young children.

Opt for a term plan to secure your family's financial future.

Creating a Retirement Corpus
Estimate the corpus needed to sustain your lifestyle post-retirement.

Consider inflation and increasing living costs.

Your investments should grow enough to create this corpus.

Review and adjust your investment strategy to meet this goal.

Maximizing Rental Income
You have Rs. 30,000 monthly rental income.

Consider investing in property improvements to increase rental value.

Explore rental markets for better opportunities.

Ensure the rental income grows consistently.

Exploring Tax Planning
Efficient tax planning can increase your savings.

Utilize tax-saving instruments under Section 80C and 80D.

Invest in Equity-Linked Savings Schemes (ELSS) for tax benefits.

A CFP can help you optimize your tax planning strategy.

Reviewing Retirement Plans Annually
Review your retirement plan annually.

Assess your progress towards the retirement corpus.

Adjust your investments based on market conditions.

A CFP can provide valuable guidance during these reviews.

Benefits of Professional Guidance
A Certified Financial Planner offers expertise and personalized advice.

They help in aligning your investments with your financial goals.

CFPs assist in navigating market volatility and optimizing returns.

Their guidance can significantly enhance your financial planning.


Your goal to retire in five years is ambitious but achievable.

Balancing current expenses with future savings is challenging.

Your dedication to securing your family's future is commendable.

I'm here to support and guide you through this journey.

Step-by-Step Financial Plan
Evaluate and Cut Expenses: Review your current spending. Cut unnecessary expenses to increase savings.

Boost Savings Rate: Save aggressively, aiming for 30-40% of your income.

Increase Mutual Fund Investments: Allocate more to high-growth funds. Rebalance annually.

Avoid Direct Funds: Invest through a CFP for better guidance.

Maintain Emergency Fund: Keep 6-12 months of expenses in liquid assets.

Plan for Children's Education: Invest in dedicated education funds. Review regularly.

Ensure Adequate Insurance: Have sufficient health and life insurance.

Maximize Rental Income: Improve property for better rent. Explore new rental markets.

Efficient Tax Planning: Utilize tax-saving instruments. Invest in ELSS.

Annual Reviews: Assess your retirement plan yearly. Adjust investments as needed.

Seek Professional Guidance: Work with a CFP for expert advice and personalized plans.

Final Insights
Retiring in five years is a significant goal.

Your current financial situation is strong, but it needs fine-tuning.

Focus on increasing savings, optimizing investments, and efficient tax planning.

Regular reviews and professional guidance will keep you on track.

Your dedication to securing your future and providing for your family is admirable.

Stay committed to your plan, and you can achieve your retirement dreams.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2024

Asked by Anonymous - Jul 14, 2024Hindi
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Money
I am 37,Married. Wife is 31 years. Together we have a earning of 2 L per month in hand. We have jointly 31 L invested in MF with 52 L valuation, also has 20K pm SIP. We have 12 L in Stock with 21 L valuation, 6.5 L in PPF, 14 L in EPF, 8L in SGB and finally around 10 L in FD + 2 L cash as emergency fund. We have fixed family expense of 60k monthly family expense and another 55k emi for home loan going on for next 20 years. Would like to retire by 55 with a corpus of 1.5 Cr (inflation adjusted). Please suggest.
Ans: Current Financial Snapshot
Monthly Income: Rs 2L (combined)
Monthly Expenses: Rs 60K
EMI: Rs 55K (20 years remaining)
Emergency Fund: Rs 10L in FD + Rs 2L cash
Investments
Mutual Funds: Rs 31L (current value Rs 52L)
Monthly SIP: Rs 20K
Stocks: Rs 12L (current value Rs 21L)
PPF: Rs 6.5L
EPF: Rs 14L
SGB: Rs 8L
Goals
Retirement Age: 55 years
Retirement Corpus: Rs 1.5 Cr (inflation-adjusted)
Appreciating Your Efforts
You have a well-diversified portfolio. Your disciplined investing through SIPs and maintaining an emergency fund are commendable.

Assessing the Gap
To retire with a corpus of Rs 1.5 Cr in 18 years, you need to calculate how much more you need to save and invest. Considering inflation and current savings, let's plan your investments.

Investment Strategy
Increasing SIPs
Current SIP: Rs 20K
Increase SIP to Rs 30K: This will help accelerate your corpus growth.
Asset Allocation
Mutual Funds:

Continue with current funds.
Add new funds to diversify further.
Stocks:

Maintain current portfolio.
Consider investing additional amounts if comfortable with market volatility.
PPF and EPF:

Continue contributions. These are stable and tax-efficient.
Sovereign Gold Bonds (SGB):

Good for diversification and inflation hedge.
No need to add more; keep current allocation.
Emergency Fund
Maintain your current emergency fund (Rs 12L).
Ensure it is easily accessible.
Detailed Allocation Plan
Mutual Funds:

Rs 30K SIP in a diversified portfolio of funds.
Include large-cap, mid-cap, small-cap, and balanced advantage funds.
Stocks:

Reinvest dividends.
Consider adding high-quality, long-term stocks.
PPF and EPF:

Continue regular contributions.
Aim for maximum yearly PPF contribution (Rs 1.5L).
Monitoring and Rebalancing
Review Quarterly: Check performance and rebalance if necessary.
Annual Rebalancing: Adjust asset allocation based on market conditions and goals.
Insurance and Contingency
Life Insurance: Ensure adequate coverage.
Health Insurance: Include family members in the plan.
Final Insights
To meet your retirement goal, increase your SIP to Rs 30K, maintain current investments, and review regularly. Diversify across different asset classes for stability and growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6568 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 26, 2024

Asked by Anonymous - Jul 18, 2024Hindi
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Money
Hi sir, I am 35years old.i have 5year old son.my salary and my wife it's 120000, Total medical insurance is 20lack. Pf 9000 per month mutual fund 11000 per month and I have a flat of 65lack.i want to retire at 50.
Ans: Current Financial Situation
Income: Combined salary of Rs 1,20,000 per month.

Medical Insurance: Coverage of Rs 20 lakhs for your family.

Provident Fund: Rs 9,000 per month.

Mutual Fund Investment: Rs 11,000 per month.

Property: Own a flat valued at Rs 65 lakhs.

Son's Age: 5 years old.

Retirement Planning
Goal: Retire at age 50. This gives you 15 years to build a retirement corpus.

Corpus Needed: You need a substantial corpus to sustain post-retirement. This includes living expenses, medical needs, and inflation.

Investments Assessment
Provident Fund: Stable and secure. Continue contributing.

Mutual Funds: Good choice for long-term wealth creation. Ensure you have a diversified portfolio.

Property: Avoid considering it as a liquid asset for retirement. Focus on financial instruments instead.

Increasing Investments
Enhance SIPs: Increase SIP contributions gradually. Aim for a higher monthly investment.

Equity Exposure: Ensure a good mix of equity mutual funds. Equity offers higher returns over the long term.

Debt Funds: Balance your portfolio with some debt funds for stability.

Insurance Review
Medical Insurance: Rs 20 lakhs is decent coverage. Review it periodically to ensure it meets future needs.

Life Insurance: Ensure adequate life cover. Consider term plans for sufficient coverage.

Education Fund for Son
Higher Education: Start a dedicated fund for your son's higher education. Education costs will rise significantly.

Investment Options: Use a mix of child plans and mutual funds to build this corpus.

Reducing Debt
Home Loan: If you have a home loan on your flat, plan to repay it before retirement.

Debt-Free Retirement: Aim to enter retirement without any liabilities.

Professional Guidance
Certified Financial Planner: Consult a Certified Financial Planner for a detailed plan. They can help you balance risk and return.

Regular Reviews: Periodically review your financial plan. Make adjustments based on life changes and market conditions.

Final Insights
Consistent Savings: Regular and disciplined savings are key to achieving your goals.

Balanced Portfolio: Maintain a balanced portfolio to manage risks.

Focus on Long-Term: Keep a long-term perspective for investments. Avoid short-term market fluctuations.

Emergency Fund: Ensure you have an emergency fund. It should cover at least 6 months of expenses.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Milind

Milind Vadjikar  |387 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 13, 2024

Asked by Anonymous - Oct 12, 2024Hindi
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Hi, age 40 years, monthly net salary Rs 85k, married , 1 kid. Recently have constructed new house. Ground floor commercial shops, and 1st floor residential 2bhk flat were we stay. Home loan 1.05 cr with monthly EMI of 85k for next 30 years & All current savings exhausted due to new construction. Commercial shops have potential for monthly rental income of 60k to 70k.please guide on below for strategy: 1) how to close home loan in next 10 years 2) considering 60 as retirement age, need corpus of 8 cr to fund kid education, marriage and for rest of livelihood.
Ans: Hello;

1. Immediately let out the commercial shops on long lease with yearly rent hikes. This is crucial to fund your loan EMI.

Assuming this to yield rental income of 70 K per month.

You will still need to shell out 15 K for the EMI amount from your income.

2. So after deducting EMI cut from your monthly pay we are left with
70 K.
Earmarking 30 K for your regular expenses, I suggest you start a monthly SIP of 40 K in a pure equity mutual fund with yearly top-up of 11% minimum.

This may grow into a corpus of 1.47 Cr after 10 years part of which you may utilise to settle off the overdue loan amount.

3. The balance corpus left after settling the loan is expected to be around 54 L. At this stage you will need enhance monthly sip to 1.5 L with 13 % yearly top-up for the next 10 years.

4. The corpus from SIP after the next 10 years may be 6.3 Cr. The balance corpus of 54 L may grow into a sum of 1.83 Cr. Both added will give you a comprehensive corpus of 8.13 Cr, as desired. ( A modest return of 13% from pure equity mutual funds is considered).

Happy Investing!!

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

...Read more

Nayagam P

Nayagam P P  |3811 Answers  |Ask -

Career Counsellor - Answered on Oct 13, 2024

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Career
Sir the median package at ssnce for cse core is less than rvce ise .So does it make more viable option considering placement in mind .I have a dream of becoming software engineer from my childhood. But my seniors are advising for rvce ise.what to do should I follow my dream or placement.I am a Bangalore resident and Tamil is my mother tongue.
Ans: Ashwin, my son, graduated from RVCE in 2023 and secured employment through campus placement with a reputable software company. Despite being among the highest achievers in COMEDK, he opted for ECE instead of the more accessible CSE. We did not compel him to join CSE. Following his second year, he progressively shown an interest in software and obtained several certifications through NPTEL, Internshala, and similar platforms. Regarding his experience, while ISE is commendable, CSE is the superior option. Simply enter 'RV placement statistics 2024'. Select the initial result to get the Placement Statistics of RV directly. The top placements are for Computer Science Engineering, followed by Electronics and Communication Engineering, and then Information Science Engineering. The recommendations of your seniors, your personal interests, and the branch with the highest placement statistics are distinct considerations. Kindly review the Course Curriculum for both CSE and ISE and make a decision. Kindly review one of my detailed responses below, in which I have explicitly outlined the stages, recommendations, and methods that a first-year engineering student should adhere to till their fourth year for campus placement. All the BEST for Your Prosperous Future.

To know more on ‘ Careers | Education | Jobs’, ask / follow Us here in RediffGURUS.

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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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