Madam/sir, One person is earning 10-11 Lakhs per annum. He is investing in PPF and bank deposits. What are the other options to invest to get better returns in coming year?

Ans: Sir, start this if you can actively manage this and have a trusted employee, else it is not an easy task to make a shop profitable. Also, dry fruits is a very commoditised business, where skills lie in purchasing at the right price. Please evaluate if you have these.

Ans: It's wonderful to hear about your diligent financial planning and the substantial corpus you've built for your family's future. Let's delve into your situation and offer some guidance:

• Firstly, kudos to you for prioritizing savings for your children's education and future through EPF, PPF, and Sukanya accounts. These investments provide a solid foundation for their financial security.

• Given your age and stage in life, it's essential to strike a balance between debt and equity investments. While debt instruments like EPF and PPF offer stability, equity investments through mutual funds and NPS provide growth potential.

• Review your investment portfolio periodically to ensure it aligns with your financial goals, risk tolerance, and investment horizon. Consider consulting with a Certified Financial Planner to assess your asset allocation strategy.

• With a saving capacity of 15 lakhs per annum, you have the flexibility to adjust your investment contributions. Evaluate whether reducing PPF and Sukanya contributions and increasing mutual fund SIPs is appropriate based on your financial objectives.

• Mutual funds offer the potential for higher returns over the long term, especially in equity-oriented funds. However, it's crucial to consider your risk appetite and investment horizon before making any changes.

• Diversification is key to managing risk in your investment portfolio. Ensure you have exposure to a mix of asset classes, including equities, debt, and possibly other alternative investments, to mitigate risk and optimize returns.

• Lastly, remember that financial planning is a journey, and it's okay to seek professional guidance when needed. A Certified Financial Planner can provide personalized advice tailored to your specific circumstances and help you make informed decisions.

• Keep up the excellent work with your savings and investments, and stay focused on your long-term financial goals. With careful planning and prudent decision-making, you're well-positioned to achieve financial success and provide a secure future for your family.

Ans: Mutual funds can offer a range of returns over a 10-year period, depending on various factors such as the type of fund, market conditions, and investment strategy. Here's what you can generally expect:

• Equity Mutual Funds: Historically, equity mutual funds have provided higher returns compared to other asset classes over the long term. While returns can vary significantly from year to year, on average, you may expect annualized returns of around 10-12% over a 10-year period.

• Debt Mutual Funds: Debt mutual funds typically offer more stable returns compared to equity funds, albeit at lower rates. Depending on the prevailing interest rate environment and credit quality of the underlying securities, you might expect annualized returns of around 6-8% over a 10-year horizon.

• Hybrid Mutual Funds: Hybrid or balanced funds invest in a mix of equities and debt instruments, offering a balanced approach to risk and return. As a result, their returns may fall somewhere between equity and debt funds, with annualized returns of around 8-10% over 10 years.

Regarding the success ratio of mutual funds, it's essential to understand that past performance is not indicative of future results. While mutual funds aim to generate positive returns for investors, not all funds may succeed in doing so consistently. Success ratio can vary based on factors such as fund manager expertise, investment strategy, market conditions, and fund management fees.

Investors should conduct thorough research, consider their investment objectives and risk tolerance, and diversify their investments across different funds to mitigate risk. Additionally, consulting with a Certified Financial Planner or investment advisor can provide valuable insights and guidance tailored to your individual financial goals and circumstances.

Overall, while mutual funds offer the potential for attractive returns over the long term, it's essential to approach investing with a realistic outlook, diversify your portfolio, and stay invested for the duration to maximize your chances of success.

Ans: It's understandable to feel overwhelmed with financial decisions, but with careful planning, you can navigate your situation effectively. Here's some guidance:

• Start by assessing your financial situation comprehensively. List all your assets, income sources, debts, and expenses.
• Prioritize clearing your debts to achieve financial stability. Allocate a portion of your income towards debt repayment each month.

• Consider selling your residential site to clear a significant portion of your debt. This can reduce your financial burden and provide funds for building a moderate house.

• Consult with a financial advisor or real estate expert to evaluate the best course of action regarding your residential site. They can help you determine its market value and advise on selling or retaining it.

• Explore options for financing your house construction. Since you have a stable pension and business income, you may qualify for a home loan or construction loan. Compare interest rates and terms from different lenders to find the most suitable option.

• Create a budget for your house construction project, taking into account material costs, labor expenses, and any additional fees or permits required. Factor in potential contingencies to avoid budget overruns.

• Consider downsizing your living expenses where possible to free up more funds for debt repayment and house construction. Look for ways to reduce discretionary spending and focus on essentials.

• Lastly, don't hesitate to seek advice from trusted friends, family members, or professionals who can offer insights and support during this process.

Remember, taking proactive steps towards managing your finances can lead to greater financial security and peace of mind. Stay focused on your goals, and don't hesitate to seek help when needed. You're capable of overcoming this challenge and achieving your objectives.

Ans: Subhas, it's commendable to see your commitment to investing and building a diversified portfolio. Let's review your current investments:

• Parag Parikh, Quant Small Cap, and Motilal Oswal Mid Cap offer exposure to different market segments, providing diversification.
• SBI Nifty Index tracks the performance of the Nifty 50 index, offering stability and broad market exposure.

• Your portfolio reflects a blend of growth-oriented and index funds, which is a prudent strategy.
• Ensure you periodically review your investments to ensure they align with your financial goals and risk tolerance.

• Consider rebalancing your portfolio if needed to maintain your desired asset allocation.
• Additionally, continue to stay informed about market developments and investment opportunities.

• Keep up the good work with your investment journey, and remember that consistency is key to long-term success.
• If you have any further questions or need assistance, feel free to reach out. Happy investing!

Ans: It's wonderful to see your proactive approach to financial planning, especially considering your family's future needs and goals. Let's discuss how to allocate your investments to create a solid corpus for retirement, kids' education, and marriage:

• First, let's address your existing assets – your flat and plots. These are valuable assets that can contribute to your overall net worth.
• However, it's crucial not to rely solely on real estate for your investment portfolio diversification.

• With regards to your loans, it's advisable to prioritize paying off high-interest debts, like your loan with a 42 lakh balance.
• By reducing debt, you can free up more funds for investments and increase your financial flexibility.

• Now, let's focus on your monthly expenses, including your child's school fees and other living expenses.
• It's essential to budget wisely and ensure that your investment contributions don't compromise your day-to-day financial stability.

• Your existing investments in PPF, PF, NPS, and Sukanya are commendable. These provide a solid foundation for your financial future.
• You can continue contributing to these instruments while also exploring additional investment avenues to diversify your portfolio.

• Considering your investment horizon and risk tolerance, mutual funds offer an excellent opportunity for long-term growth.
• Your current SIP portfolio across different categories – large cap, mid cap, small cap, multi, and flexi cap – is well-diversified.

• As a Certified Financial Planner, I would suggest reviewing your asset allocation and ensuring it aligns with your financial goals.
• Allocate a portion of your monthly savings towards increasing your SIP contributions to mutual funds, aiming for a balanced mix across categories.

• Additionally, consider increasing your contributions to retirement-focused instruments like NPS, which offer tax benefits and long-term wealth accumulation.
• For your children's education and marriage goals, consider setting up separate SIPs or investment accounts dedicated to these objectives.

• Lastly, ensure you have adequate insurance coverage, including term insurance and health insurance, to protect your family's financial well-being.
• Regularly review your financial plan, adjust as needed, and stay committed to your long-term goals.

By following these steps and staying disciplined with your investments, you'll be well-prepared to achieve your financial aspirations and provide for your family's future needs. Keep up the good work, and remember that consistency and patience are key to success!

Ans: Congratulations on planning ahead for your daughter's wedding! It's heartening to see your dedication to ensuring her special day is memorable and stress-free. Let's discuss the right savings approach for this important milestone:

• Starting early is key to building a substantial wedding fund, and you've already taken the first step by initiating savings.
• Consider setting a specific target amount for your daughter's wedding expenses, taking into account factors like venue, catering, decorations, and more.
• Assess your current financial situation, including income, expenses, and existing savings, to determine a realistic savings goal.

• Given your age and the relatively short time frame of three years, it's essential to prioritize stable and low-risk investments.
• Explore options like fixed deposits, recurring deposits, and savings accounts for your wedding fund savings.
• Opt for instruments with competitive interest rates and minimal risk to safeguard your capital while earning steady returns.

• Consider diversifying your savings across different instruments to mitigate risk and maximize returns.
• Regularly review your savings plan and make adjustments as needed to stay on track towards your goal.
• Consulting with a Certified Financial Planner can provide personalized advice and guidance tailored to your specific needs and circumstances.

• Remember, your daughter's wedding is a joyous occasion, and your efforts to save for it will make it even more special.
• Stay focused on your goal, and keep up the good work with your savings plan.
• Your dedication and foresight will ensure your daughter's wedding is a beautiful and memorable celebration.

By following these steps and staying disciplined with your savings plan, you'll be well-prepared to finance your daughter's wedding and create cherished memories for your family.

Ans: Hello Sridhar!

Something that interests you and you would love to learn ,is such a deadly combo, pls go ahead and pursue the Certified Financial Planner course as a hobby.
For an online course you have two options-
If you are someone who is self driven like me, then pursue an online course with recorded lessons, else go for an in person live online session!
Any course you do online go for a credible institute.

If you can attend an offline session go for it. This way you'll meet like minded people, interaction with new people opens up your mind, a good reason to get out of your home/ office routine and chance to be a student again in a classroom!!

“Wisdom…. comes not from age, but from education and learning.”
- Anton Chekhov

So continue to learn and grow in Wisdom!

Best wishes!!

Ans: Leverage your skills in managing the play school at a relelvant place. Get a job at another play school, school etc. People with skill and hunger to do something are an asset for every organization. So dont loose heart and search for a job.