Loan woes and tax trouble: How can I help my brother?

Ans: Data is not availabe and very old, the RTA - KFintech are the right people to get you the answer.
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Ans: You are doing a disciplined and smart job with your investments. You have a long-term horizon, a strong SIP commitment, and a clear goal in mind. That’s a big step many don’t take seriously. Let me now evaluate your approach from all angles. This will be a 360-degree review of your investment plan and future readiness.

Let us go step-by-step to understand if your approach is right and what the future looks like.

Your Current Financial Setup

You are 40 years old now.

You have a mutual fund corpus of Rs 13 lakh.

You invest Rs 30,500 monthly through SIP.

You invest in four small cap funds and one flexi cap fund.

You step up your SIP by 10% annually.

You have a PPF investment of Rs 12,500 monthly.

You contribute to EPF. Your basic salary is Rs 25,000.

You will receive Rs 50 lakh from LIC policies at age 60.

Your investment horizon is 22 years from now.

This is a solid plan and shows discipline. Now, let us evaluate it carefully with insights and suggestions.

Assessment of Mutual Fund Investments

You are investing heavily in small cap mutual funds.

Four out of five funds are from the small cap category.

Small caps give high returns, but they also carry high risk.

Over 22 years, this risk may work in your favour.

But the ride will be bumpy. There will be sharp ups and downs.

At times, you may see short-term losses. That is normal.

However, putting over 85% of SIP in small caps may be risky.

You need better diversification for stability.

Adding large cap and mid cap funds may balance the risk.

Your Flexi cap fund does help a bit, but it is still not enough.

A blend of market caps will give smoother long-term growth.

It is better to slowly bring down small cap exposure to 50%.

Increase exposure to diversified and mid-cap funds gradually.

Don’t exit small cap funds suddenly. Take a phased approach.

This change will make your portfolio strong and well-balanced.

Step-Up SIP Strategy – Strong and Effective

Increasing SIP by 10% annually is a smart idea.

This fights inflation and grows your wealth faster.

It uses your rising income to build a big corpus.

Many investors ignore step-up. You are doing it correctly.

Keep increasing the SIP without fail every year.

Even a break in step-up can delay your target.

Review your SIPs yearly and adjust as income rises.

This strategy will help you reach your target corpus faster.

Investment in PPF – A Safe Long-Term Cushion

PPF offers guaranteed, tax-free interest.

You are investing Rs 12,500 monthly in PPF.

Over 22 years, this will become a strong safe corpus.

It adds stability to your overall financial plan.

PPF is good for retirement since it is risk-free.

Keep continuing till maturity. Do not withdraw early.

Interest rate may vary, but long-term returns are good.

You also get tax exemption under Section 80C.

This risk-free asset will protect you from equity market shocks.

EPF – A Reliable Retirement Contributor

Your EPF is linked to your Rs 25,000 basic salary.

The employer also contributes monthly.

Over 22 years, this will grow into a big amount.

EPF offers fixed, tax-free returns with no market risk.

It is an excellent tool for retirement planning.

Avoid premature withdrawals from EPF.

You can withdraw after retirement for use as income.

This will be a strong pillar of your retirement security.

LIC Maturity at Age 60 – A Special Boost

You will receive Rs 50 lakh from LIC policies at age 60.

This will come at a perfect time near retirement.

You must check if these are traditional or ULIP plans.

Traditional plans offer low returns, mostly below inflation.

ULIPs carry market risk and high charges.

If these are investment-cum-insurance plans, surrendering is wise.

You can reinvest that surrender amount in mutual funds.

Use proper asset allocation while reinvesting.

For insurance needs, use only term insurance.

Reinvesting in mutual funds can make this Rs 50 lakh grow further.

Future Corpus at Age 62 – What to Expect

With SIPs, EPF, PPF and LIC money, your total savings will be huge.

Your mutual fund corpus will grow rapidly with step-up.

Your PPF and EPF will grow safely, year after year.

LIC amount will give a big boost just before retirement.

With 10% SIP step-up, your corpus can cross Rs 9 to 10 crore.

Exact figure depends on market returns, SIP discipline, and inflation.

But you are definitely on the right path to reach financial freedom.

You are preparing for retirement very well.

This kind of planning gives peace of mind and confidence.

Things You Are Doing Right – A Quick Look

Strong SIP discipline and long-term vision.

Investing in equity for long-term wealth creation.

Following step-up SIP approach.

Investing in PPF and EPF for safe returns.

Keeping investment horizon of 22 years.

Maintaining separate LIC maturity plans.

You are showing smart behaviour as an aggressive investor.

Key Improvements You Should Consider

Reduce small cap exposure to 50% slowly.

Add more mid-cap and flexi cap funds.

Avoid overlapping funds from same category.

Review performance of all funds every 6 months.

Check expense ratios and consistency of returns.

Track goal progress once a year with clear targets.

Make sure your portfolio has good asset allocation.

Don’t hold funds only based on past returns.

Always go through a Certified Financial Planner for changes.

This will make your portfolio more stable and return-oriented.

Important Taxation Insight

Long-Term Capital Gains above Rs 1.25 lakh are taxed at 12.5%.

Short-Term Capital Gains are taxed at 20%.

Plan redemptions smartly to reduce tax.

Use staggered withdrawals near retirement.

Redeem equity funds over time, not all at once.

PPF and EPF are tax-free. LIC maturity is also tax-free.

But for mutual funds, plan redemptions with tax efficiency.

This will help you protect your wealth from tax erosion.

Important Notes on Fund Types and Investments

Do not use direct mutual funds if you are not an expert.

Direct funds need self-review and research, always.

There is no handholding or guidance with direct funds.

If you miss fund underperformance, losses may happen.

Regular funds through MFD with CFP advice are safer.

CFP will do goal review, fund analysis and rebalancing.

This adds value and protects your goals from derailment.

Always go through a trusted CFP for a 360-degree plan.

Your long-term wealth deserves the right expert attention.

Finally – Our Insights for You

You are on a great track with vision and discipline.

You are investing smartly across equity and debt.

With minor changes, your plan can become stronger.

Keep focus on diversification and risk management.

Review your goals and progress yearly with expert help.

Stick to your plan even during market falls.

Continue your SIP step-up and never skip contributions.

Use professional guidance to ensure smooth journey.

Your retirement will be financially independent and stress-free.

This approach will help you lead a proud, peaceful life post-60.

Stay committed and consistent. You are doing excellent already.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Forget about the trend of now a days. You people the guardians misguide your children. First try to go deep and know the choice of your daughter. What will you know by the trend of present day? If I say Robotics is the trend of present day would you go for it without which your daughter likes. knowing the interest and capabilities of your daughter. Always try to go for the stream which suits your daughter. Even a chef can be an international celebrity. She should try for low ranked NITs and IIIts and the Govt. run state engineering colleges in the state where she is having her domicile certificates. In India the parents need more counselling than the children.

Ans: For taking CSE in 12th PCM is generally compulsory. Completing 12th standard with Physics, Chemistry, and Mathematics (PCM) is generally required for pursuing Computer Engineering (B.Tech) programs in India. While some private universities may offer admissions for students with different subject combinations (like PCB), the most common and widely accepted path for engineering, including Computer Science, is through the PCM stream.

Ans: Hello Rohan
Congratulations on clearing the JEE (M). Underestimating yourself regarding any examination is not the proper approach towards the goal you have set. Appear for the JEE (A) without fear and without any expectations for the result. You will gain admission to BITS if you meet the required cutoff in BITSAT. You have two options: electrical or mechanical. Both branches have their own merits. You need to choose which field you wish to work in the future. If you are willing to go to the newly formed NITs in the North-East regions, then prefer that option. Choosing between GFTIs, BIT Mesra, or VIT can be somewhat confusing. You did not mention your hometown, so I am unable to guide you properly. However, to choose among these three options, prioritize GFTIs if possible. Considering a repeat attempt at the JEE is generally not recommended. Yet, if you have the patience and full confidence to succeed in both JEEs, then you may consider repeating. Best of luck with your upcoming BITSAT examination. Last suggestion: among the two options, Mechanical and Electrical, choose Electrical if possible. You can either pursue a job or start your own business in the energy sector.
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Radheshyam

Ans: As you have previously stated, it is challenging to achieve a Common Rank of 80K in JEE-Advance. However, it is possible to make an endeavor. Secondly, it is important to observe that a minimum score of 280 out of 390 is required for BITS CS Branches and/or 250 for other in-demand branches. The majority of students make the error of applying for or appearing in an insufficient number of exams. Consequently, I consistently advise appearing in a minimum of 8-10 entrance exams as a backup. MnC from DTU provides exceptional opportunities, particularly for students who are interested in data science, analytics, and computing. It is consistently one of the most successful branches at DTU, following CSE, with a ROI that is comparable or superior. I recommend that you also engage in JoSAA Counseling and select the maximum number of preferred options that best suit your interests, as well as the institute's reputation and placement records.Please review one of my responses (a step-by-step guide) regarding the likelihood of admission to NIT/IIIT/GFTI as a value-added resource. Alternatively, you may view the EduJob360 YouTube video on the JoSAA Counselling Process. All the Best for Your Admissions!

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Ans: Samriddh Sir, IIT-M offers an online Bachelor of Science program in Data Science and Electronic Systems. I trust you are referring to BS in Data Science. A number of engineering students enroll in BS-DS during their first year and successfully complete both programs by their fourth year of engineering studies. The BS-DS will undoubtedly enhance the profile. However, please confer with your son regarding his capacity to manage both commitments, and ascertain whether the online lectures are recorded or live sessions, as well as the minimal attendance % required. Instruct him to review the Course, Curriculum, Assignments, Exams (whether offline or online), and other pertinent material prior to enrollment. Regarding recommendations for other universities, it relies on the results of all entrance examinations your son has taken or plans to take. For mechanical engineering, you can have backups like Thapar, Amity, Shiv Nadar, etc. All the Best for Your Son's Admissions!

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Ans: Anmol, Your brother can pursue engineering next year by appearing for an additional Mathematics exam. Most Indian school boards allow students to appear for an additional subject after completing their Class 12th. The result will be issued as an additional marksheet or combined marksheet, depending on the board. JoSAA requires candidates to have passed 10+2 with Physics and Mathematics as compulsory subjects for B.Tech eligibility. Acceptance depends on whether the additional Mathematics marksheet is considered "equivalent" to a regular 12th-grade pass with PCM. Alternative solutions include giving JEE with Additional Math, pursuing a 3-year Diploma in Engineering (Polytechnic) and entering into the 2nd year of B.Tech via Lateral Entry Exams (LEET), or attending private/deemed universities. It is important to consult your brother's board to ensure they allow only additional Math and the marksheet will be valid for engineering entrance eligibility. All the Best for Your Admissions!

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Ans: Piyush, Prefer to join ECE at KIIT. If your VIT rank is 77.4K, you will be placed in a higher category than Category 4, and you will be required to pay a significant amount of fees. Have some other Colleges/Universities also as back-ups such as Thapar, Amita, PES etc. All the Best for Your Admissions!

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