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Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 22, 2023

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 - Mar 31, 2023Hindi
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Partha Pratim Chowdhury :: Kindly give your valuable advise ...SWP is better than MIS in Bank/Post offict....

Ans: It depends on your planning. Pls reach out to your financial planner,
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  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

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Dear Sir, I am 53 years, and planning to do SWP for Rs. 3 Lacs ...it would be better than MIS in Bank/PO.... what is minimum/maximum return may earn in SWP whether itis monthy/qtly/yearly......Partha P. Chowdhury..
Ans: Assessment of Systematic Withdrawal Plan (SWP) vs. Monthly Income Scheme (MIS):

Understanding Your Financial Situation:

At 53 years of age, planning for regular income streams is a prudent financial decision as you approach retirement.
Your consideration of SWP as an alternative to Monthly Income Scheme (MIS) in banks or post offices reflects a proactive approach towards optimizing your income sources.
Evaluation of Systematic Withdrawal Plan (SWP):

SWP allows you to withdraw a fixed sum periodically from your mutual fund investments, providing a steady income stream.
Unlike MIS in banks or post offices, SWP offers the flexibility to choose withdrawal frequencies such as monthly, quarterly, or yearly based on your cash flow requirements.
SWP from mutual funds potentially offers higher returns compared to MIS, as mutual funds invest in a diversified portfolio of assets, including equities, which have the potential for capital appreciation over the long term.
Assessment of Potential Returns:

The minimum and maximum returns from SWP depend on various factors such as the underlying performance of the mutual fund scheme, market conditions, and the chosen withdrawal frequency.
While SWP provides the opportunity for capital appreciation and higher returns over the long term, it also exposes your investments to market volatility, which may impact the returns.
Historical data suggests that equity-oriented mutual funds have delivered average annual returns ranging from 10% to 15% over the long term, although past performance does not guarantee future results.
By diversifying your investments across asset classes and opting for a systematic withdrawal approach, you can mitigate risk and potentially enhance returns over time.
Comparison with Monthly Income Scheme (MIS):

MIS in banks or post offices typically offer fixed interest rates, providing predictable but relatively lower returns compared to equity-oriented mutual funds.
While MIS offers capital protection and stable income, it may not keep pace with inflation, leading to a decline in purchasing power over time.
SWP from mutual funds, on the other hand, has the potential to generate inflation-beating returns and preserve the purchasing power of your capital over the long term.
Recommendations:

Considering your age and income requirements, SWP from mutual funds can be a suitable option to generate regular income while potentially achieving higher returns compared to traditional income schemes.
Consult with a Certified Financial Planner to assess your risk tolerance, investment objectives, and cash flow needs to determine the most appropriate withdrawal frequency and mutual fund schemes for your SWP strategy.
In conclusion, SWP from mutual funds offers the flexibility, potential for capital appreciation, and inflation-beating returns that may be superior to traditional income schemes like MIS in banks or post offices, provided it aligns with your risk profile and financial goals.

Best Regards,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |7510 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 06, 2025

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Namaskar Sir, Can you suggest me best performing SWP in India.
Ans: An SWP allows you to withdraw a fixed amount regularly from your mutual fund investments. It provides steady cash flow and helps manage expenses while keeping your investments intact.

It is ideal for retired individuals seeking income or those looking for periodic liquidity without disturbing their long-term portfolio.

You can customise the withdrawal frequency—monthly, quarterly, or annually.

Key Factors for Selecting an SWP

Investment Objective Alignment
Choose funds that match your goals, such as regular income or wealth preservation.

Fund Performance
Pick funds with a consistent track record across various market conditions.

Expense Ratio
Opt for funds with a moderate expense ratio to maximise your returns.

Tax Efficiency
Withdrawals are treated as redemptions and taxed accordingly. Choose funds that minimise tax liability.

Asset Allocation
Maintain a balanced portfolio by diversifying across equity, debt, and hybrid funds.

SWP and Actively Managed Funds

Actively managed funds often outperform in volatile markets. Fund managers can adjust allocations to deliver better returns.

Actively managed funds offer better opportunities for growth compared to index funds. Index funds follow market indices and lack active intervention to reduce risks.

Regular Funds Over Direct Funds

Investing through a Certified Financial Planner adds value. Regular funds offer guidance, helping you choose the right options.

Direct funds lack professional advice. This could lead to poor decisions and misalignment with your goals.

Creating an Effective SWP

Start With a Core Portfolio
Invest in stable, well-performing funds to ensure consistent income.

Set a Realistic Withdrawal Rate
Withdraw an amount that doesn’t deplete your investment too quickly.

Review Periodically
Monitor fund performance and make adjustments based on your financial needs.

Supplement With Growth Investments
Invest part of your portfolio in equity or hybrid funds for growth potential.

Understanding Tax Implications

For equity funds, LTCG above Rs 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
For debt funds, gains are taxed as per your income tax slab.
Choose funds wisely to manage tax impact.

Final Insights

An SWP provides both income and capital preservation when planned correctly. Align your SWP with your financial goals and risk tolerance. Seek professional advice for fund selection and tax optimisation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Nayagam P

Nayagam P P  |4050 Answers  |Ask -

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I’ve always aspired to work in the Ministry of External Affairs, but I know the competition is tough. I will be appearing for the SSC CGL exam this year. For Tier 2, which sections or strategies should I prioritise to boost my chances of landing my dream role in this recruitment drive?
Ans: The SSC CGL exam is a competitive entry-level job in the Ministry of External Affairs (MEA), with the main role being Assistant Section Officer (ASO). Tier 2 of the exam consists of multiple papers, with Paper I being required for all postings, including MEA. The main focus areas are mathematical quantitative aptitude, thinking and general intelligence, English language and understanding, and general knowledge.

Quantitative aptitude (200 Marks) is a high-scoring but time-consuming area, with areas such as algebra, geometry, trigonometry, menuration, data interpretation, and number system. Practice and strengthen basic skills, focusing on accuracy and speed. Resources for pattern comprehension include R.S. Aggarwal's Gradeup and Testbook quantitative aptitude with online mocks.

English language and comprehension (200 Marks) is high-scoring and essential for MEA, with areas like grammar, vocabulary, comprehension, synonyms and antonyms, and sentence correction. Strategies include daily reading schedules, vocabulary expansion using Norman Lewis's Word Power Made Easy, and solving cloze tests.

General awareness (100 Marks) is crucial for MEA aspirants, with areas like current affairs, international relations, Indian polity, geography, history, and economics. Stay informed about foreign policy changes, NCERTs, and NCERTs for stationary sections.

General intelligence and reasoning (60 Marks) is a scoring section, with areas like puzzles, coding-decoding, blood relations, series, and direction tests. Techniques include trying full-length mock tests, time management, previous year reports, and preparing for essays and letter writing on global concerns. All the Best for SSC CGL Exam.

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Nayagam P

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Career Counsellor - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Hello Sir, I’m back to you with a question . Sir, doing mechanical in top nits or iiits or bits, what are the possibilities to do ms in computer science. I keep hearing from everyone to go for cse to do ms cs , but my daughter prefers good college first and then cse, based on her capability it’s extremely difficult to get cse in tier1 , so she says I will do mechanical in tier 1 and do ms cs abroad. Please guide on the pros , cons Sir
Ans: Pursuing Mechanical Engineering at top-notional institutes like IIT, NIT, IIIT, or BITS or any other NIRF-Ranked Engineering It may please be noted that if your daugther performs well in 1st Year of her BE/BTech, she will be upgraded to CSE Branch (based on the Institute's Internal Sliding Policy). Colleges offer advantages such as a strong alumni network, branch flexibility, and a strong resume for MS admissions. Students can enroll in elective courses in programming, data structures, and computer applications to prepare for an MS in CS.

However, transitioning from Mechanical to CS for an MS overseas can be challenging due to the need for prior knowledge in CS principles. With more self-learning and certificates, it is possible. Additionally, CS is tough for MS admissions in the US, and students may have to create a strong profile through internships, online courses, and certifications in CS domains without a CS degree.

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If your daughter's main goal is to pursue an MS in CS, it is better to consider Tier 1 Institutes with CS or IT branches and top-tier institutes with Mechanical focus actively pursuing CS. All the Best for Your Daughter's Prosperous Future.

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Ravi

Ravi Mittal  |504 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 15, 2025

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Hello sir/ma'am, i am 24 yrs old and my boy friend 25 yrs old.I met him in a friendly chat app .We were talking on calls,texting and video calls and met each other in real after a 1 yr of relationship.He is the first guy and love in my life and want to marry him.I even made my family to agree for our marriage.He too says he loves me so much and has imagined his life with me and want to marry me.He even told his parents will stick on to whatever he says.He hasn't yet conveyed to his parents yet and told he will introduce to them after his younger sister marriage.We both are students still. I recently found that,he goes to the chat apps again and chats to other girls.When i asked ..he told just friends and even questioned me saying don't u have guy friends? and don't u meet them?....i told him u r the first guy n i dont have any. When our relationship has gone till marriage...why is that he wants to chat to multiple girls?...Now,i started feeling like he doesn't love me as he expressed. He even had past 3 online relationships n all 3 breakups,he told all these before..he told i am the first girl in real life.. I am worried now.Why do guys chat with multiple girls though they are in a serious relation?..does he really love or is it a game? No physical between us.We just met once in a temple and he just kissed my hands while we are going back and got very emotional while he was about to leave. I am worried..what should i do?.please,suggest.
Ans: Dear Ammarao,
Not all men chat with multiple women when they are serious about their relationship. Some might, but most men in exclusive relationships don't continue chatting. If his chats are truly friendly, there isn't much to worry about. But if you think there is more to it, I would suggest you reconsider the relationship.

Please talk to him directly and ask him if these women are only friends and if they know he is in a committed relationship. If he is being too defensive, you can tell him that in a relationship, it is also important to focus on what your partner is comfortable with. If you do not like these online friendships, communicate it to him.

I hope this helps.

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Dating, Relationships Expert - Answered on Jan 15, 2025

Asked by Anonymous - Jan 15, 2025Hindi
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Recently, I (28M) had surgery and have been bedridden for 15 days. During this time, my girlfriend told me her female friend wanted to meet up with a guy. This guy was bringing along a male friend whom I’ve asked my girlfriend to avoid in the past because he tends to get touchy with her. They planned to stay in a hotel, and her friend wanted to be with the guy at night, meaning my girlfriend and the touchy guy would likely share a single room. A couple of days before the trip, she asked me if she should go. I told her it was her choice but made it clear I wasn’t happy about it. Despite that, she went, and when I confronted her, she gave responses like: • “I didn’t invite the touchy guy; the other guy did.” • “Just because you’re bedridden, you don’t want me to go outside.” • “I didn’t touch him; he got touchy with me.” Yeah, maybe I’m jealous or overthinking, but this whole situation has made me unsure about marriage altogether. Am I overreacting?
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I really cannot comment if you are overreacting or have every reason to feel this way without knowing a bit more about the entire situation. But what I can tell is that you should communicate your feelings to your partner. Let her know that while maintaining individuality or pursuing individual wishes in a relationship is important, it is equally important to pay heed to what makes your partner uncomfortable. Your request, from what information you have provided, seemed reasonable, while her reasoning that it is the guy's fault, not hers also makes perfect sense. So I think the best course of action is to let the situation calm down and have an open conversation. Could she have avoided this meetup to make you happy? Yes. But, she could've thought that if she avoids one thing for your happiness, you might start asking her to give up more things in the future, which is a real issue in many relationships. I think it is important to clear up all of these concerns and feelings before moving on with lifelong commitment.

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Nayagam P

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This is my second attempt at SSC CGL, and I’ve improved since last year. But I’m still anxious about the descriptive paper. Can you suggest ways to stand out in this section and make my essay and letter writing more impactful?
Ans: The SSC CGL descriptive paper requires a clear, structured, and effective presentation. To improve your essay writing skills, review the subject matter thoroughly and avoid deviations from the central theme. Sketch an initial outline and adhere to a straightforward framework, including an Introduction, Body, and Conclusion. Start with a hook and express your thesis or stance in a concise manner. Arrange arguments in a logical order, using data, examples, and facts to establish credibility. Avoid repetition and maintain brevity.

In summary, concisely summarize the primary themes and offer a fair perspective. Avoid vernacular language and maintain appropriate sentence structure and grammar. Maintain a clean writing style and avoid overwriting.

For writing a letter, adhere to the conventional format, maintain clarity and conciseness, and articulate the purpose in the first paragraph. Use simple language and avoid intricate terminology.

Regularly engage in writing essays and correspondence on various subjects to develop adaptability. Stay informed about the latest news and hot topics. Develop time management skills and consistently proofread your work for errors.

Developing impactful essays and letters with clarity, structure, and content relevance enhances your chances of success in the SSC CGL descriptive paper. All The Best for Your Prosperous Future.

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How to manage stress?
Ans: The first step is to become aware of what triggers your stress. This self-awareness allows you to address the root causes rather than just the symptoms. Once you identify these triggers, you can start exploring techniques that help you cope effectively.

One effective approach is to incorporate regular self-care practices into your daily routine. This could include activities that bring you joy and relaxation, such as exercise, meditation, or spending time in nature. These practices not only help calm the mind but also improve your overall mood and resilience to stress.

Talking to someone you trust, whether a friend, family member, or professional, can also be a powerful way to manage stress. Sharing your feelings and experiences helps lighten the emotional load and provides different perspectives that might help you navigate your challenges more effectively.

It's also important to focus on what you can control and let go of things that are beyond your influence. This shift in mindset can reduce feelings of helplessness and frustration. Setting realistic expectations for yourself and others can also alleviate unnecessary pressure.

Remember to give yourself permission to rest and recharge. Adequate sleep, a balanced diet, and time for relaxation are essential for managing stress. When you take care of your body and mind, you're better equipped to handle life's demands.

Lastly, cultivating a mindset of gratitude and mindfulness can help you stay present and appreciate the positive aspects of your life, even during stressful times. These practices can create a sense of balance and help you respond to stress in healthier, more constructive ways. By integrating these approaches into your life, you can build resilience and find a sense of peace amidst the chaos.

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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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