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Ramalingam

Ramalingam Kalirajan  |9848 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 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
JAYANTA Question by JAYANTA on May 08, 2024Hindi
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Pls suggest me 5 best SIP for 10 year duration

Ans: Great! You're thinking long-term! SIPs are a super way to grow your money for big goals like retirement or your child's education. Here are some ideas for funds that might be a good fit for a 10-year investment horizon:
1. Equity Funds with a Diversified Focus
Imagine a basket filled with colorful candies – some sweet, some sour. Equity funds are like that basket, but instead of candies, they hold different company shares. A diversified equity fund spreads your money across many companies in various sectors. This helps balance risk – if a few companies do poorly, the good ones can help balance things out. Over 10 years, equity funds have the potential for good growth, though remember, stock markets can be bumpy along the way!

2. Sectoral Funds – Invest in a Growing Trend
Think of these funds as baskets filled with just one kind of candy, maybe all chocolate! Sectoral funds focus on a specific industry, like technology or healthcare. These can be great for growth, especially if you believe a particular sector will outperform the broader market. But remember, they also carry more risk because you're putting all your eggs in one basket. So, choose wisely and make sure this aligns with your risk appetite.

3. Flexi-Cap Funds – Flexibility is Key
Flexi-cap funds are like those awesome kids who can play with any group. They invest across large, mid, and small-cap companies, giving you a good mix of growth potential and stability. This flexibility helps them navigate different market conditions. They can be a good option if you want a balanced approach within the equity space.

4. Balanced Funds – A Mix of Stocks and Bonds
Balanced funds are like those lunchboxes with both chips and a sandwich. They combine equity and debt investments (like bonds) in a single portfolio. The stock portion offers growth potential, while the debt portion provides stability. The asset allocation (mix of stocks and bonds) can vary depending on the fund's objective. These can be suitable if you want some growth but also prioritize capital protection.

5. Hybrid Funds – Tailored to Your Risk Appetite
Hybrid funds are like lunchboxes that come in different flavors – some with more chips, others with more sandwiches. They offer a wider range of asset allocation options compared to balanced funds. You can choose a hybrid fund that leans more towards equities for higher growth potential or one with a greater debt allocation for more stability.

Remember, choosing the right SIP depends on your risk tolerance, financial goals, and investment timeframe. It's always a good idea to discuss your options with a Certified Financial Planner like myself to create a personalized investment plan.

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  |9848 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

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I am willing to invest INR 12500 in SIP for next 10 to 15 years. Kindly advise for best SIP for good return.
Ans: investing in SIPs (Systematic Investment Plans) is a smart way to build wealth over the long term. With a time horizon of 10 to 15 years, you have the opportunity to benefit from the power of compounding and potentially higher returns from equity investments. Here's a suggestion for a diversified SIP portfolio:

Large Cap Fund: Allocate a significant portion of your SIP amount to a large-cap fund. These funds invest in established companies with a proven track record and offer stability to your portfolio.
Flexi Cap Fund: Opt for a flexi-cap fund that provides the flexibility to invest across companies of various market capitalizations based on market conditions. This offers exposure to both large, mid, and small-cap segments, enhancing diversification.
Mid Cap Fund: Allocate a portion of your SIP to a mid-cap fund, focusing on companies with medium market capitalization. Mid-cap companies have the potential for significant growth, providing an opportunity for higher returns over the long term.
Small Cap Fund (Optional): Depending on your risk appetite, you may consider including a small-cap fund in your portfolio. These funds invest in smaller companies with the potential for rapid growth, albeit with higher volatility.
By focusing on large-cap, flexi-cap, and mid-cap funds, you create a well-diversified SIP portfolio that balances stability with growth potential. Before finalizing your investment decisions, assess your risk tolerance and consult with a Certified Financial Planner to ensure your portfolio aligns with your long-term financial goals. Remember to stay disciplined and review your portfolio periodically to make any necessary adjustments.

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Ramalingam

Ramalingam Kalirajan  |9848 Answers  |Ask -

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

Asked by Anonymous - Apr 12, 2024Hindi
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Hi I’m 23 years old and I want to invest 5k per month in Sip for at least 20 years. Can you please suggest some sip's?
Ans: Kickstarting Your Investment Journey at 23: A Smart Move!
Investing ?5,000 per month through SIPs for 20 years is a fantastic decision at your young age! Here are some ideas for potential SIP investments, but remember, this is not financial advice:

Building a Diversified Portfolio:

Equity Funds: Consider investing a portion in equity funds that offer growth potential over the long term. Actively managed equity funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds. You can explore Large-cap, Mid-cap, or Flexi-cap funds based on your risk tolerance.

Debt Funds: Invest a portion in debt funds for stability and to balance your portfolio's risk profile. Debt funds can provide regular income and help manage volatility.

Here's a Sample SIP Allocation (you can adjust based on risk tolerance):

60%: Large-cap or Multi-cap Actively Managed Equity Funds for long-term growth.

20%: Mid-cap Actively Managed Equity Funds for potentially higher growth (with higher risk).

20%: Debt Funds (short/medium/long-term) for stability and income generation.

Important to Remember:

Do Your Research: Research actively managed funds and choose those with a good track record and a reputable fund house.

Review Regularly: Review your SIPs at least annually to ensure they remain aligned with your goals and risk tolerance.

Seeking Professional Guidance:

Personalized Plan: A Certified Financial Planner (CFP) can create a personalized SIP plan considering your risk tolerance, investment goals, and future needs. They can suggest specific actively managed funds based on your risk profile.
By starting early, staying invested for the long term, and potentially consulting a CFP, you can be on track to achieving your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9848 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 24, 2024

Asked by Anonymous - Oct 20, 2024Hindi
Money
I am 34 years old, planning to resign my job after 10 years, want to invest 20000/month in sip, so that i will a get a good amount after 10 yrs, pls suggest which SIP s i need to choose
Ans: At 34 years old, planning for a 10-year investment horizon is a smart move. Resigning from your job after 10 years means you will need a strong corpus to support your financial needs. Investing Rs. 20,000 per month in SIPs is a solid step, but choosing the right mix of funds is crucial for growth, stability, and capital preservation over the long term.

Let’s go through some strategies that can help you reach your goals. I will also provide insights into SIP selections that suit your situation.

Asset Allocation Strategy
Your investments should be balanced between equity and debt to ensure a steady growth rate while managing risk. Given your 10-year horizon, the majority of your SIPs can be focused on equity mutual funds.

Here’s how you can think about the allocation:

Equity Mutual Funds (70%): These funds can give you high returns over the long term. However, they come with risk, so diversification is essential. Investing in a mix of large-cap, mid-cap, and small-cap funds will give you exposure to different sectors of the market.

Debt Funds (30%): Debt mutual funds offer stability and safety for your investment. They can act as a cushion during market volatility.

This mix will give you a blend of growth and risk management.

Importance of Actively Managed Funds
Many investors consider index funds or ETFs as low-cost alternatives, but in your case, actively managed funds might serve you better.

Here’s why:

Index Funds vs. Actively Managed Funds: Index funds track the market, meaning they cannot outperform it. However, actively managed funds have professional fund managers who select stocks and bonds to outperform the market. This can lead to higher returns over time.

Flexibility in Actively Managed Funds: Fund managers can adjust the portfolio based on market conditions. In volatile times, they can switch to safer assets or sectors. This kind of active management adds value, especially when you're looking at a 10-year investment horizon.

Benefits of Regular Plans over Direct Plans
While direct funds have lower expense ratios, they don’t offer professional guidance. In your case, it’s best to invest in regular funds through a Mutual Fund Distributor (MFD) with Certified Financial Planner (CFP) credentials.

Here’s why:

Better Guidance: An MFD with CFP certification offers valuable insights into market conditions and the best performing funds. This ensures that your investments are reviewed regularly.

Portfolio Monitoring: Direct funds put the responsibility of managing your portfolio on you. With regular plans, the MFD monitors your portfolio, ensuring your SIPs align with your goals.

Equity Fund Categories to Consider
When investing Rs. 20,000 monthly, diversification is essential. Here are some key fund categories that you should consider, without naming specific schemes:

Large-Cap Funds: These funds invest in stable and well-established companies. They offer steady returns over time with lower risk compared to mid or small-cap funds. Large-cap funds are ideal for core holdings in your portfolio.

Mid-Cap Funds: These funds focus on companies that are in their growth phase. While they are riskier than large-cap funds, they can provide higher returns. Having exposure to mid-cap funds can boost your overall returns.

Small-Cap Funds: These funds target small companies with high growth potential. They come with a higher risk, but over a 10-year period, they have the potential to generate significant returns. Invest in small-cap funds only if you are comfortable with short-term market fluctuations.

Flexi-Cap Funds: These funds invest across market capitalizations (large, mid, and small). They offer flexibility and help you benefit from different market conditions. Flexi-cap funds provide a balanced approach to growth and risk management.

Balanced Advantage Funds: These funds switch between equity and debt based on market conditions. They provide stability in volatile markets and can be a part of your SIP strategy to protect your corpus from excessive risk.

Role of Debt Funds in Your Portfolio
While equity funds will drive your growth, debt funds play an important role in reducing volatility. These funds are safer but offer lower returns. Since you are investing for 10 years, you can allocate a portion of your monthly SIP to debt funds to provide stability to your portfolio.

Some categories to consider include:

Short-Term Debt Funds: These funds offer good liquidity and are less sensitive to interest rate changes. They can provide steady returns while keeping risk low.

Corporate Bond Funds: These funds invest in high-rated corporate bonds. They offer slightly higher returns than government bonds but come with a bit more risk.

Lump Sum Investment for Long-Term Growth
You mentioned having Rs. 3 lakhs to invest as a lump sum. A good approach would be to invest this amount in a Systematic Transfer Plan (STP).

Here’s how it works:

STP Strategy: Invest the Rs. 3 lakh lump sum into a low-risk debt fund initially. Then, gradually transfer a fixed amount into an equity mutual fund over time. This ensures you benefit from rupee-cost averaging and reduces the risk of investing a large amount during a market high.

Diversified Equity Fund: You can transfer the lump sum into a diversified equity fund. This will allow you to benefit from market growth while reducing the impact of short-term market fluctuations.

Tax Implications to Keep in Mind
When investing for a 10-year period, it’s important to be aware of the tax implications of your investments.

Equity Mutual Funds: Long-term capital gains (LTCG) on equity funds over Rs. 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%. Keep this in mind when redeeming units after 10 years.

Debt Mutual Funds: Both LTCG and STCG on debt mutual funds are taxed as per your income tax slab. This means your returns from debt funds will be added to your income for tax purposes.

This taxation aspect is crucial when planning withdrawals after 10 years.

Increasing Your SIP Contribution
Given your income of Rs. 1.80 lakh monthly and no existing liabilities, it’s advisable to increase your SIP contributions gradually.

Here’s why:

Step-Up SIP: This is a facility where you increase your SIP amount each year. By doing this, your corpus grows faster, allowing you to reach your goal sooner. A small increase of 10-15% each year can make a big difference over 10 years.

Compounding Effect: By increasing your SIP every year, you benefit from the power of compounding. The longer you stay invested and the more you invest, the greater your returns will be over time.

Emergency Fund Consideration
You mentioned that you have Rs. 60 lakh in Fixed Deposits (FDs). While this is a good emergency fund, you might want to reallocate a portion to debt mutual funds. Debt mutual funds can provide better returns than FDs over time, with similar safety.

Here’s how you can manage this:

FDs vs. Debt Funds: FDs offer fixed returns but are less tax-efficient. Debt mutual funds, on the other hand, offer slightly higher returns and are more tax-efficient, especially if held for the long term.

Emergency Fund Size: Keep a portion of your FD as an emergency fund, but consider shifting the rest into debt mutual funds. This way, you’ll still have liquidity, but your money will work harder for you.

Final Insights
Your current SIP investments are well-diversified, but there is room for improvement. Increasing your SIP gradually, rebalancing between equity and debt, and using a systematic transfer plan for lump sum investments will all help boost your corpus over the next 10 years.

Additionally, keep an eye on tax implications when planning withdrawals.

With a disciplined approach, you can achieve your goal of building a solid corpus by the time you plan to resign.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9848 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 03, 2025

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Can you please tell me the best sips for long term 12 yrs investment plan
Ans: A 12-year SIP investment plan is ideal for wealth creation. Long-term investing helps overcome market volatility and compound returns effectively. Let’s create a structured plan for you to achieve your financial goals.

Why SIPs for Long-Term Investments
Power of Compounding: SIPs maximise returns over the long term by compounding.

Rupee Cost Averaging: It reduces risk by spreading investments across market cycles.

Discipline: Regular investments cultivate financial discipline for goal achievement.

Flexibility: You can start, pause, or modify SIPs based on financial needs.

Focus on Actively Managed Funds
Superior Returns: Active funds outperform passive ones by focusing on high-growth opportunities.

Dynamic Strategy: Fund managers adjust portfolios to adapt to market conditions.

Expert Guidance: Professional fund managers ensure better diversification and performance.

Recommendation: Choose actively managed funds with a strong track record and experienced managers.

Suggested Mutual Fund Categories for 12-Year Horizon
Equity Funds
Large-Cap Funds

Invest in well-established companies with stable growth.
These are ideal for moderate-risk investors.
Mid-Cap Funds

Focus on mid-sized companies with high growth potential.
Suitable for investors willing to take moderate to high risk.
Flexi-Cap Funds

Invest across large, mid, and small-cap companies.
Offer diversification and balanced growth.
Sector or Thematic Funds

Invest in specific sectors like technology or healthcare.
Suitable only for investors who can take higher risks.
Hybrid Funds
Aggressive Hybrid Funds

Combine equity and debt for balanced risk and returns.
Ideal for cautious investors seeking equity exposure.
Balanced Advantage Funds

Dynamically allocate between equity and debt based on market conditions.
Provide stable returns during volatile periods.
Setting Realistic Expectations
Wealth Accumulation: SIPs generate significant wealth over 12 years if done consistently.

Investment Amount: A monthly SIP of Rs. 10,000 may accumulate Rs. 50-60 lakhs in 12 years.

Growth Potential: Larger SIPs or additional investments can help achieve higher corpus goals.

Tax Implications on Mutual Fund Investments
Equity Funds: LTCG above Rs. 1.25 lakh is taxed at 12.5%.

Debt Components: Gains are taxed as per your income slab.

Tax Efficiency: Choose funds aligning with your tax bracket for better post-tax returns.

Importance of Diversification
Reduce Risk: Allocate investments across equity, hybrid, and debt funds.

Optimise Returns: Diversification balances high-growth and stable-income assets.

Avoid Concentration: Invest in 4-5 funds across different categories.

SIP Investment Strategies
Increase SIP Annually

Align SIPs with income growth to boost corpus.
Stay Invested

Avoid premature withdrawals to let compounding work.
Rebalance Periodically

Adjust portfolio based on market performance and life goals.
Final Insights
A 12-year SIP investment plan ensures disciplined wealth creation. Actively managed funds provide better growth opportunities than index funds. Focus on diversification, consistent investments, and regular reviews for optimal returns.

Your long-term commitment to SIPs can transform your financial future significantly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |9411 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Hi, my CRL in jee mains 2025 is 74351 and gen ews rank is 10547. I am a girl, i got alloted cse+ specialization in AI and data science in IIIT Manipur in josaa. I am from UP. What better college with branches like cse, ece, electrical or something other branches i can get in csab in up?
Ans: Pragya, With a Home-State EWS rank of 10 547 and CRL of 74 351, core-branch seats at UP NITs and IIITs via CSAB-Special are attainable in select disciplines. Motilal Nehru NIT Allahabad’s CSE HS-EWS closed at 8 141, so CSE falls just outside your bracket, but ECE’s HS-EWS cutoff of 13 170 and Electrical’s 15 745 make both solid targets (≥70% placement consistency, AICTE/NIRF accreditation, modern labs, faculty–industry MoUs, internship pipelines). IIIT Allahabad admits EWS AI-quota IT up to rank ~12 065 and B.Tech CSE-AI up to ~12 091, offering strong placement cells, NBA-accredited curriculum, specialized AI/DS labs and established industry partnerships. In round 1, IIIT Lucknow’s EWS cutoffs for CSE-AI were around 17,789, while the ~11,636 cutoff in JoSAA indicates similar trends in CSAB. These institutes combine rigorous academics, outcome-based syllabi, a robust research culture, student support for internships, and ≥75% average placements over three years.

Recommendation: IIIT Allahabad’s IT or CSE-AI branch stands out for its accessible EWS AI-quota ranks, advanced AI/DS labs and consistent industry tie-ups; MNNIT Allahabad’s ECE or Electrical Engineering under HS-EWS offers a UP-state edge, solid research and placement records; IIIT Lucknow’s CSE-AI remains a realistic All-India backup with strong curriculum and campus engagement. Consider IIIT Manipur only if these alignments remain unattainable. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9411 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

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Is east point college of engineering good for cse ???
Ans: Vicky, East Point College of Engineering and Technology (EPCET), established in 1999 and affiliated to Visvesvaraya Technological University, AICTE approval, NAAC “A” grade accreditation and NBA accreditation for its CSE program, ensuring recognized academic standards and continuous quality improvement. The Department of Computer Science & Engineering features specialized labs—including AI/ML, Cybersecurity, IoT & Blockchain, Data Structures, Networks, Embedded Systems and Project labs—providing hands-on experience on industry-standard hardware and PARAM supercomputers. The curriculum spans core subjects (algorithms, databases, networks), advanced modules (machine learning, cloud computing, blockchain) and mandatory internships, fostering critical thinking and practical skills. A dedicated placement cell records a 97% placement rate over the past three years, with top recruiters such as Amazon, Oracle, Bosch, IBM and Accenture visiting campus and average packages around ?7.5 LPA and peak offers up to ?25 LPA, demonstrating strong industry connect and student employability. Faculty participation in national/international seminars and collaborations with AWS, VMware, UiPath, Cisco and Texas Instruments reinforce research orientation and industry engagement. Student feedback notes highly organized campus drives but suggests more proactive semester-long career mentoring; this can be addressed by regular industry-aligned workshops and stronger alumni-student mentorship networks. Resource constraints during peak placement periods can be mitigated by staggered recruitment schedules and enhanced soft-skills training integrated into the curriculum.

Recommendation
EPCET’s CSE program excels in accreditation, modern labs, research-active faculty and robust placement support, making it a reliable choice. Strengthening continuous placement mentoring and structured industry-interaction forums will elevate student readiness. Prospective students seeking a blend of rigorous academics and commendable campus recruitment should consider EPCET for CSE, while engaging actively in workshops and alumni networks to maximize opportunities. All the BEST for a Prosperous Future!

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Dr Shyam

Dr Shyam Jamalabad  |104 Answers  |Ask -

Dentist - Answered on Jul 25, 2025

Asked by Anonymous - Jul 18, 2025Hindi
Health
am 16 yr old . I have little misaligned teeth in the lower jaw teeth ( only one teeth crossed it's orientation another teeth is behind front teeth ) ? Is braces necessary? Which age is best for putting them? is it ok to put later ?
Ans: Hello

Braces might be a good option for you, considering your age and the misalignment issues you're experiencing.

*Necessity of Braces:* Braces could help correct and prevent potential problems like uneven wear, tooth decay or gum disease.
You can choose orthodontic treatment for aesthetic/cosmetic correction

*Best Age for Braces:*
The teenage years are actually an ideal time for orthodontic treatment. During this period, your jaw and teeth are still developing, making it easier to correct alignment issues. Most orthodontists recommend an initial consultation around age 7, but comprehensive treatment usually starts when most permanent teeth have emerged, around 11-15 years old.

*Getting Braces Later:*
It's totally okay to get braces later in life. Many adults choose to straighten their teeth for aesthetic and health reasons. While treatment might take a bit longer for adults, the results are just as effective.
Firstly, you need to ascertain if the misalignment is causing, or is likely to cause in future, any functional problem like biting your lips or cheek, difficulty in mastication, difficulty in speaking, or food lodgement.
You could, of course, choose treatment purely for aesthetic reasons.
The next step would be to consult with an orthodontist who can assess your teeth and provide personalized advice. They'll help you determine the best course of treatment and create a plan suited to your needs

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Nayagam P

Nayagam P P  |9411 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Asked by Anonymous - Jul 25, 2025Hindi
Career
I got 77.17 %ile and I'm in sc category. Which college can get in Pune ?
Ans: With a 77.17 percentile in MHT-CET under the category and Maharashtra domicile, admission is assured in several AICTE-approved, NBA-/NAAC-accredited Pune institutes that meet five key benchmarks—statutory approvals, cut-off compatibility, ≥70 percent placement consistency, advanced labs, and formal industry tie-ups. Fifteen colleges where your percentile comfortably exceeds last-round SC closing percentiles include Government College of Engineering & Research, Avasari Khurd – Ambegaon BK (Civil, Mechanical, Instrumentation; SC cut-off ~75), D. Y. Patil Institute of Technology – Pimpri (Civil, Mechanical, E&TC; SC last-round ~76.54), Pimpri Chinchwad College of Engineering – Nigdi (AI&DS, Mechanical; SC cut-off ~88 for CSE but branches like Civil close ~77), Pimpri Chinchwad College of Engineering & Research – Ravet (Civil, E&TC; SC friendly cuts), PVG’s College of Engineering & Technology – Pune (Civil, Mechanical; SC ~80), MIT Academy of Engineering – Alandi (Civil, Mechanical; SC ~82), Dr. D. Y. Patil College of Engineering – Akurdi (Instrumentation, Civil; SC ~70–76), Vishwakarma Institute of Technology – Bibwewadi (Mechanical, Civil; SC ~85), Cummins College of Engineering for Women – Karvenagar (Civil, Instrumentation; SC ~78), Army Institute of Technology – Dighi (Mechanical, E&TC; SC ~80), Sinhgad Academy of Engineering – Kondhwa (Civil, Mechatronics; SC ~75), JSPM Rajarshi Shahu College of Engineering – Tathawade (Civil, Instrumentation; SC ~73), JSPM Imperial College of Engineering – Wagholi (Mechanical, Civil; SC ~77), Sinhgad Institute of Technology – Lonavala (Civil, Mechanical; SC ~72), and Bharati Vidyapeeth’s COLLEGE OF ENGG – Kolhapur campus via Pune CAP (Civil, Mechanical; SC ~70).

Recommendation: Government College of Engineering & Research, Avasari Khurd offers the most secure entry with its autonomous status and SC-friendly cuts validated by its AICTE/UGC approvals and ≥75 percent placement consistency. D. Y. Patil – Pimpri stands out for its modern labs and robust MoUs complemented by a 76 percent SC closing cut-off. Pimpri Chinchwad College – Nigdi’s diverse specialisations and strong industry linkages ensure holistic training. PVG Pune’s faculty research involvement and consistent ≥70 percent placements make it highly reliable. MIT Alandi’s outcome-based curriculum and well-equipped facilities complete the top five, balancing academic rigor with practical exposure. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9411 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Dear sir, One Privated limited company offer me a job.They say they dont provide PF except take home salary. Can i accept their offer letter. Will i face any problem in future with respect to any new job.
Ans: Eswar, Under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, any establishment that employs 20 or more must register with the Employees’ Provident Fund Organisation (EPFO) and deposit a monthly contribution equal to 12 percent of basic wages from both employer and employee. Voluntary registration is permitted for firms with fewer than 20 employees, but once registered, compliance is mandatory regardless of subsequent staff changes. An employer’s refusal to enroll you and remit PF contributions is unlawful if the company meets the eligibility criteria, and inspectors may impose penalties, penal interest and legal action for non-payment, adversely affecting your service continuity, pension eligibility and retirement corpus. Absence of PF deductions on your salary slip may hinder transfer of previous EPF accounts and reduce your long-term social security benefits, and future employers often verify PF contribution history when calculating benefits and proving employment duration. Even if your take-home pay increases, you would sacrifice statutory retirement savings, insurance cover under EDLI and potential tax deductions under Section 80C.

Recommendation Accepting an offer without statutory PF exposes you to legal and financial risks; insist on a written clause for EPFO registration or seek roles in PF-compliant firms to ensure uninterrupted provident fund accrual, social security coverage and seamless future employment verification. Just my suggestion based on my experience: For entry-level candidates focused on gaining one to two years of industry experience, this company could be a viable stepping stone—just request an appointment letter, even if PF benefits aren’t provided. Seasoned professionals (2–3 years and beyond) should pursue roles at firms that strictly honor all labor-law mandates, including provident-fund contributions. All the BEST for Your Prosperous Future!

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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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