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Should I Invest My NRI ULIP Surrendered Funds in India or the US Before Renouncing My Indian Citizenship?

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 08, 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 - Aug 08, 2024Hindi
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Hi , I am a NRI, living in USA for more than 10 years. Recently I surrendered one of my ULIPs in India. This was started 15 years back. I have got around 29 Lakh Rs. What should be best investment option for me. Should I invest in India or take money to USA. Next year I might have to abdicate my India citizenship. Does that impact my investments in India.

Ans: Invest in Indian equity mutual funds.
India is transitioning from developing to developed economy.
It's moving towards becoming the 3rd largest economy.

Advantages of Indian Market

Indian economy is growing faster than many others.
This growth can lead to better returns in equity.
Investing in India gives you a share in this growth.

Indian Equity vs US Market

Indian equity market has more growth potential now.
US market is already developed with slower growth.
Indian stocks might give better returns in coming years.

Types of Mutual Funds

Consider large-cap funds for stability.
Mid-cap and small-cap funds for higher growth potential.
Flexi-cap funds for a mix of all market caps.

Systematic Investment Plan (SIP)

Use SIP to invest in these mutual funds.
This helps in managing market volatility.
You can start SIP from your NRE account.

Long-term Perspective

Indian equity needs a long-term view.
Plan to stay invested for at least 7-10 years.
This helps in riding out short-term market fluctuations.

Diversification Within India

Invest in different sectors of Indian economy.
Consider funds focusing on manufacturing, IT, banking etc.
This spreads your risk across various industries.

Monitoring Your Investments

Keep track of your investments regularly.
Review performance every 6 months.
Make changes if some funds consistently underperform.

Tax Considerations

Understand tax implications in both India and US.
Long-term capital gains in India have some tax benefits.
Consult a tax expert for detailed advice.

Currency Advantage

Rupee might appreciate as economy grows.
This can give you additional returns on your investment.
But remember, currency movements are unpredictable.

Finally

Indian equity offers good growth potential for NRIs.
It's a way to participate in India's economic growth.
Consider talking to a Certified Financial Planner for personalized advice.

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  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 2024

Asked by Anonymous - Apr 12, 2024Hindi
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Hi, i have 20,000$ USD available to invest. Will transfer them to my NRE account this month. Please suggest best ways i can invest money in india for max returns - both short term and long term
Ans: That's a significant amount to invest, and it's great that you're considering your options carefully. Since you're looking to invest in India, Mutual Funds (MFs) can offer a diversified and potentially rewarding investment avenue. Here's a suggestion for both short-term and long-term investment:

Short-term Investment:
Consider investing a portion of your funds in Liquid Mutual Funds. These funds invest in short-term debt instruments with a maturity period of up to 91 days, providing liquidity and stability. They are ideal for parking funds temporarily while you decide on your long-term investment strategy. The repatriable nature of these funds allows you to easily convert your investment back to USD whenever needed.
Long-term Investment:
For long-term wealth accumulation, you can explore Equity Mutual Funds. These funds invest in a diversified portfolio of stocks, offering the potential for higher returns over the long term. Since you have a longer investment horizon, you can consider a mix of large-cap, mid-cap, and flexi-cap funds to spread risk and optimize returns. Equity Mutual Funds have the potential to outperform other asset classes over extended periods.
It's essential to assess your risk tolerance, investment goals, and time horizon before making investment decisions. Additionally, ensure that the investments you choose offer the repatriable feature, allowing you to repatriate the funds back to your foreign account if needed. Consulting with a Certified Financial Planner can provide personalized guidance tailored to your financial objectives and help you make informed investment choices.

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Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2024

Asked by Anonymous - Jun 23, 2024Hindi
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Hello Sir I am NRI staying outside India for over a decade. I was working with an Indian firm who send me on an assignment to US. I continued to work with the firm for a decade and recently resigned. As a result I am expecting a sum of around 75 lacs amount as part of retiral benefits. The amount will be deposited to my NRO account. I want to know what are good options to invest this amount given the limitations around NRIs investing in stock markets especially Mutual Funds. Kindly advise
Ans: You are an NRI who worked with an Indian firm for a decade and recently resigned.

You are expecting around Rs 75 lakhs as part of retiral benefits.

This amount will be deposited into your NRO account.

Investment Options for NRIs
Fixed Deposits (FDs)
Bank Fixed Deposits: NRIs can invest in NRO fixed deposits. They offer safety and stable returns.

Corporate FDs: Consider corporate FDs for higher interest rates. They come with slightly higher risk.

Debt Mutual Funds
Access and Benefits: NRIs can invest in debt mutual funds. They provide stability and tax efficiency.

Short-Term and Long-Term Funds: Choose a mix of short-term and long-term debt funds to balance risk and return.

Equity Mutual Funds
Mutual Fund Investments: NRIs can invest in equity mutual funds. Check the specific guidelines of mutual fund houses regarding NRI investments.

Diversification: Opt for diversified equity funds. They reduce risk and provide good growth potential.

Portfolio Management Services (PMS)
Professional Management: Consider PMS for professional management of your investments. They offer personalized investment strategies.

Higher Minimum Investment: PMS typically requires a higher minimum investment. It might be suitable for your Rs 75 lakhs corpus.

Real Estate
Long-Term Growth: Invest in real estate for long-term growth. It offers capital appreciation and rental income.

Diversification: Diversify across different types of properties and locations.

NPS (National Pension System)
Retirement Savings: NPS is open to NRIs and provides a good retirement savings option. It offers equity exposure and tax benefits.
Tax Considerations
Tax on NRO Account: Interest earned on NRO accounts is subject to TDS at 30%. Plan your investments considering this.

Double Taxation Avoidance Agreement (DTAA): Check if your country of residence has a DTAA with India to avoid double taxation.

Suggested Investment Plan
Immediate Allocation
Emergency Fund: Allocate Rs 10 lakhs to a liquid fund or short-term FD for emergency purposes.

Debt Mutual Funds: Invest Rs 20 lakhs in debt mutual funds for stability and regular returns.

Equity Mutual Funds: Allocate Rs 25 lakhs to diversified equity mutual funds for long-term growth.

Real Estate: Consider investing Rs 10 lakhs in real estate for long-term appreciation.

NPS: Allocate Rs 5 lakhs to NPS for retirement savings and tax benefits.

Regular Review
Annual Review: Review your portfolio annually. Adjust investments based on performance and changing financial goals.
Final Insights
As an NRI, you have several good investment options despite the limitations. A mix of fixed deposits, debt and equity mutual funds, real estate, and NPS can provide a balanced portfolio. Regularly review your investments and consider tax implications to optimize your returns.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8103 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 22, 2024Hindi
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Money
Hello Mr.Ramalingam Kalirajan I am 34 years old having 1Cr in bank. Just 1 lakh investment in mutual fund. Having a land of 4.5 cr Home of 1.30cr Currently there is no investment done because I have had lost a lot of money on Crypto and dumb investments on stocks without proper knowledge about 7 years back. I am considering for some heavy investments in India. Can u tell me some suggestions.
Ans: You are 34 years old and have Rs 1 crore in the bank. You have Rs 1 lakh invested in mutual funds. You also own land worth Rs 4.5 crore and a home valued at Rs 1.3 crore.

You have no current investments due to past losses in crypto and stocks.

It's great you want to invest heavily now in India.

Investment Strategy and Diversification
Equity Mutual Funds
Actively managed equity mutual funds are a strong option. These funds can potentially offer high returns over the long term. Fund managers use their expertise to outperform the market.

Balanced Funds
Balanced funds provide a mix of equity and debt. This can help balance risk and returns. They offer stability with moderate growth potential.

Debt Mutual Funds
Debt funds are low-risk options. They provide regular income and capital preservation. Ideal for diversifying your portfolio and managing risk.

Avoiding Index Funds and Direct Funds
Disadvantages of Index Funds
Index funds are passively managed. They cannot outperform the market. Actively managed funds, with professional oversight, aim to exceed market returns. This makes them a better choice for aggressive goals.

Disadvantages of Direct Funds
Direct funds may seem cheaper due to lower fees. However, investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential offers professional guidance. This can lead to better fund selection and higher returns.

Systematic Investment Plan (SIP)
Consider setting up SIPs for regular investments. SIPs help in averaging out market volatility. They ensure disciplined and consistent investing.

Emergency Fund
Maintain an emergency fund. This should cover at least 6 months of expenses. It's essential for financial security and to avoid liquidating investments prematurely.

Diversification and Regular Review
Diversify your portfolio across different asset classes. This reduces risk and increases potential returns. Regularly review your portfolio and make adjustments as needed.

Seeking Professional Guidance
Consult a Certified Financial Planner (CFP) for personalized advice. They can help design a strategy tailored to your financial goals and risk tolerance.

Final Insights
You have a strong financial foundation.

Investing wisely and diversifying can help you achieve your goals. Focus on equity, balanced, and debt mutual funds. Avoid index and direct funds for better returns.

Maintain an emergency fund and consider SIPs. Seek professional guidance for a well-rounded investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Dr Nagarajan Jsk

Dr Nagarajan Jsk   |284 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Mar 16, 2025

Asked by Anonymous - Mar 13, 2025Hindi
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Career
I am a bsc graduate and in two months I will be 23 years old but mbbs is my dream and goal. I would like to purse it now and preparing for neet exam. Can you give you advice on this sir
Ans: ELIGIBILITY RELATED TO AGE:
Eligibility for appearing in NEET (UG), as per related Regulations of NMC
and DCI are as follows:-
5.1.1. He/she has completed 17 years of age at the time of admission or will
complete that age on or before 31 December of the year of his/her
admission to the first year of the Undergraduate Medical Course.
Accordingly, the lower age limit shall be as under:
For Candidates of General (UR)/General-EWS born on or
before
31.12.2008
For Candidates of SC/ST/OBCNCL/
PwBD/PwD Category
5.1.2. Upper age limit: As per Letter No. U-11022/2/2022-UGMEB,
dated 09 March 2022 received from National Medical
Commission (NMC), Under Graduate Medical Education Board
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limit.

ELIGIBILITY RELATED TO COURSE:
CODE: 06
B.Sc. Examination of an Indian University provided that
he/she has passed the B.Sc. Examination with not less than
two of the subjects Physics, Chemistry, Biology (Botany,
Zoology)/Biotechnology and further that he/ she has passed
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If you have completed your undergraduate degree in Science (which you didn’t mention, but I’m predicting), consider whether stating your BSc is worthwhile. Ultimately, your eligibility depends on matching your Higher Secondary Certificate (HSC) qualifications. If your HSC does not align with the requirements, you will not be eligible to appear for NEET. If you are eligible based on your HSC, then focus on your HSC score rather than Code 6.

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Asked by Anonymous - Mar 07, 2025Hindi
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I had a very bad past where I was in physical relationship with like 10 guys that was due to the earlier relationship I had where I was being used financially and physically that hurt and me and I got really f***** up in my mind so I started dating guys just for physical relationship then the last guy I was in relationship with I got pregnant with a baby and I aborted it because I did not want to have a future with him and also I did not have confidence to grow that baby. then 4 months later I met my husband I fell in love with him at the first meet and we had physical thing at the very first meet. during the second meet he read the group chat between me and my friends where we spoke bad words ,my husband was not okay with that and he was really feeling bad about it and he started to talk about our break up.I was waiting for my final yr results when I met him soon I got my result then I have to start my internship my husband paid 5 lacs rupees for me but he was anxious that I will be with the friends who I was talking bad words with in college and he wanted to have a breakup and he fighted everyday with that reason .I promised him that I will not be that person anymore and I won't talk to my friends. one day I helped my friend with work for which my husband got angry and he wanted to have a break up and he started to talk about the last guy which I said that he was a friend before and I don't talk to him anymore then he raised question about him and then I told him that I was having a Friends with benefit relationship with him, then things got bitter and he seriously wants break up this time,.everyday he talks to me about that and fights with me I stop going to college .one day I made a suicide attempt and then 2 days after he started talking to me normally. soon again he started asking all those questions about the last guy I have been with, he asked very minute questions about the day and dates and he fighted with me everyday for that. there is a friend of mine who knows everything about my past ,in all these chaos,things got bitter between me and her and we stop talking. one day my husband talked to her and he asked everything about me and he got to know all about my past and he said that he took all the history of my chats ,apps and photos and asked me questions repeatedly and I told him everything completely without hiding anything. then things got messed up. I was really distressed, then my family got involved and things got very bitter, he told everything about my past to my mother. one day, they made me stop talking to him. he sent message to my sister in law and brother about my past, then my mother went to my husband's sister and told her that my husband is making a big mess not allowing me to go to internship and he has all our intimate pictures then things got Messed up more and he stopped talking to me. he was just asking me the 5 lakhs rupees he paid for me and then we stopped talking for about a week, I turned completely insane during that period and I sent him txt that I am not able to live without him .then we started talking, few days after he was okay with me going to the college then again he started fighting he was not ok with me to go to college. then we decided to get register married which a day later he denied.then I ran away from my house to him ,he received me and I was with him for 3 months we lived together for 3 months during which period he spoke really bad of me because of my past which I endured because I was really feeling guilty of my past and I thought I deserved it. he was asking even all those small personal things and he hurted me so much with his words which was mere verbal abuse ,meanwhile I got pregnant then he introduced me to his family and then we got married registered in front of our family. it was an inter religious marriage. all this time he controls me for every little thing like I should do this and I should do that which I did not take seriously then. now everything got secured my mom wanted me to complete my degree in my hometown because I was not able to complete it anywhere else but my husband was not ok with me going to my hometown to complete my degree because of my past things. I have financial things to take care of because of the money spent for my degree so I was thinking to make a deal either to finish my degree or I wanted my husband to give back the money that was spent for my degree because he said so but then later he started to humiliate my family for expecting money from me and he told that they we just see me as an investment to earn back the money they spent on me. But my family wanted me to complete the degree at the first place.this created a lot of arguments between me and him . 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Ans: Dear Anonymous,
As bad or hurtful as it may sound to you, you have simply thrown your life at the mercy of others. They have used you as a puppet only because you have given them permission to do so...past relationships and even now.
What you should do now is:
1. Ask an elder member (not your mother) of the family to intervene and talk to him and his side of the family to see if there is any scope for reconciliation. If there is, then your husband has got to stop playing these games of wanting you one day and then not wanting you the next. It's highly toxic to live with someone who trusts you for a moment and then asks you to prove your innocence the next moment. The two of you will need to get into Intensive Therapy as a couple to put things back together.
2. If there is no scope for reconciliation, please get a good lawyer who can secure the baby's future and yours.

Though you haven't asked me this, for your own good I suggest:
Please understand that no man is going to make you happy. So, depending on them despite the fact that can act toxic, is only draining you mentally and emotionally. Evaluate for yourself what you want from life besides being in relationships constantly. A break from it all will actually help you, you know. At least it will give you sense of how you can be by yourself and what you value the most in your life. Once you get past this stage, you will be stronger to draw boundaries and know how to enforce them. No one will be able to walk over you and you will be able to reclaim your identity.
You come first and your baby is going to need a strong mother raising them. So, step up NOW!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Dr Nagarajan Jsk

Dr Nagarajan Jsk   |284 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Mar 16, 2025

Anu

Anu Krishna  |1553 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 16, 2025

Asked by Anonymous - Mar 06, 2025Hindi
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Relationship
My father in law dislikes my cooking. My husband also feels I can learn a thing or two from my mother in law. Honestly, I am not passionate about cooking or household chores. I can make my tea, fold my clothes, keep my room organised. Beyond that I cannot contribute because I also have a day job. I don't like being compared to other women who can cook, clean, do the dishes and also manage their work. This conversation always leads to arguments at home. What should I do?
Ans: Dear Anonymous,
Integrate yourself well into the family; showing interest in cooking and actually doing it are two different things. At times, family members just end up testing you through what you do or not do. Showing interest and in fact praising you mother-in-law and actually learning a dish or two the way she makes it isn't going to hurt you or put a dent in your work life. In fact, they will appreciate that you tried and leave you alone.
Going on a tangent to prove that you have a day job and that you don't like to be compared etc leads to unwanted conversations and arguments. But what is it getting you other than putting you on a spotlight where they target you again. Instead take the spotlight off of you by integrating better; they will leave you alone and in fact even support you. Right now, all this nagging is only to gain your attention and you are giving into it...Integrate...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

Anu

Anu Krishna  |1553 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 16, 2025

Asked by Anonymous - Mar 05, 2025Hindi
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Relationship
I caught my partner cheating on me with other women on a discreet dating app. He apologised once saying he joined it for fun, he wasn't serious. But I am unable to get over the incident. Recently, I discovered that he has changed his phone's password. I don't know if I should trust him again. If I find out that he is cheating on me again, it will break my heart. We have been together for 7 years. Can one incident really change your relationship? Since I confronted him, I have become more suspicious. Am I overthinking? Should I give him another chance or slowly part ways?
Ans: Dear Anonymous,
Honesty is the core of any relationship and when this is in question like in your relationship, it's obvious that you are going to think and process every move and action of his.
The key here is to separate his actions from what is important to you. Let's assume for a moment that what is important to you is Honesty...then all is actions will be evaluated against this, isn't it? This game will go on and stress you. Instead, hold on to the fact that honesty is non-negotiable and that's that!
Now, assure him that at any point in time he has the space and liberty to talk to you about anything. This will ensure that you are accommodating. Being in a understanding space can put men at ease and who knows his wayward ways may end soon. But, hey you know best...But also know this, once the seed of doubt is set in, it's only going to grow. So, decide whether you want to trust him and if he really is someone you can put your trust on. You will know that being with him for 7 years...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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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