Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Kirtan

Kirtan A Shah  |77 Answers  |Ask -

MF Expert, Financial Planner - Answered on Sep 29, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more
Asked by Anonymous - Sep 28, 2023Hindi
Listen
Money

My Sister passed away of a sudden and she had a little daughter of 6 years , my brother-in-law is chain drinker and he want all the money left by my sister , whereas we want to secure that money for the bright future of my niece. My Mother aged 73 is nominee of my sister andgot some amount for her office after she [assed away we want to Secure that money in some FD so that my no-one except my niece should get that once she attain the age of 17-18 so that the money can be utilised by her for higher studies or marrige . Pls. suggest

Ans: Invest in Sukanya Samruddhi Scheme
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |8176 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 30, 2025

Asked by Anonymous - Jan 30, 2025Hindi
Listen
Money
Hi - My sister had a daughter about 7-8 months back. I have invested 150000 in Sukanya Samriddhi (SSA) and started a SIP of 25000. I will buy gold of around 50000 so about 500000 per year for my niece. Till I am financially capable I will continue giving her yearly at least 500000. The issue is my Brother In Law keeps falling for get rich schemes and though he comes from a business family and father was a big businessman he generates no income. I want to secure my niece's future so that she is immune to anything going on with my BIL. My question is - how can I safeguard SIP from my BIL because once corpus is big enough I am afraid he will use it for some scheme. SSA is safe and hard to access and gold will be in a locker that he does not know about but SIP is in my nieces name with my sister as guardian. Please advise.
Ans: Your concern for your niece’s future is completely valid. You are taking the right steps by investing in Sukanya Samriddhi (SSA), SIPs, and gold. However, protecting her investments from potential misuse is equally important. Here’s how you can safeguard the SIP corpus from any interference.

Key Risks to Address
SIPs are in your niece’s name with your sister as guardian.
Your brother-in-law (BIL) might influence your sister to withdraw the funds.
Once your niece turns 18, she will get full access, making it vulnerable.
Steps to Secure the SIP Investments
1. Use Your Own Name as the Guardian
If possible, change the guardian to yourself instead of your sister.
As a guardian, you will control the investments until your niece turns 18.
This prevents any withdrawals without your approval.
2. Invest in a Minor Trust Instead of a Direct SIP
Set up a trust in your niece’s name with a legal framework.
The trust can specify that funds are only for education or marriage.
Your BIL or even your niece (after 18) cannot misuse the funds.
A trusted lawyer can help you create this trust legally.
3. Lock Investments in a Child Plan Mutual Fund
Some mutual funds have child plans with lock-in periods until 18-21 years.
This means no one can withdraw the funds before maturity.
Once she turns 18, she can only use the money for specific purposes.
4. Open a Custodial Account
If trust formation is not possible, invest through a custodial account.
A custodian (you) will manage the funds until a set age.
The account will prevent any premature withdrawals.
5. Keep SIPs in Your Name and Transfer Later
If none of the above work, continue SIPs in your own name.
Once your niece reaches 21-25, gift her the amount in a structured way.
This ensures the corpus remains safe and she gets the funds when mature enough.
Additional Steps for Protection
Do not disclose the full financial plan to your BIL.
Educate your sister on financial discipline and risks of bad investments.
Keep SSA and gold as separate, untouchable assets.
Finally
You are making an admirable effort to secure your niece’s future.
The best option is either a trust, a custodial account, or a child plan.
If not possible, keep investments in your own name and transfer later.
The key is to keep control away from those who may misuse it.
Would you like more details on setting up a trust or other legal protection?

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Milind

Milind Vadjikar  |1145 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 02, 2025

Listen
Money
Planning for retirement is crucial, yet many people delay making key financial decisions. With options such as workplace pensions, private pensions, and state pensions, how can individuals determine the best strategy to ensure a financially secure retirement while optimising tax benefits?
Ans: Hello;

Retirement is the one of the most important financial goal and the key is you won't get loan to meet that requirement.

Typically people neglect it in early part of their career and then get a rude shock when hardly 10-15 years are left for retirement and they can't meet target corpus amount despite heavy investments.

NPS is a great retirement product for every Indian.

In fact since it's costs are so low that you won't find people promoting it or advertising about it.

NPS is similar to workplace pension but is available for businessmen and self employed people too.

Except for a minimum 1000 per year in Tier 1 account there is no compulsion to invest and also their is no upper limit to investment. However you may automate your investment in NPS using D-remit feature.

Limited withdrawals are allowed subject to terms and limits.

You can change your fund manager if you are not satisfied with its performance and also you can have different fund managers for different asset classes.

EPS is a add-on to other sources of retirement income and can't be the the only source since the maximum pension amount is limited to Rs. 7500 per month.

Unit linked pension plans are like private pensions but are a poor and inefficient copy of NPS.

In India only Govt employees are eligible for state pension.

PPF/EPF are also avenues for building retirement corpus but interest on EPF contribution above Rs. 2.5 L in a financial year invokes tax and PPF has lower interest rate.

Best strategy to secure financially secure retirement is to begin with a small amount from your first salary and later stepping up with increased income.

Best wishes;

...Read more

Ramalingam

Ramalingam Kalirajan  |8176 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 02, 2025Hindi
Listen
Money
Despite earning a decent salary,I often find myself living from one payday to the next, struggling to save. I don't have significant debts, yet my expenses seem to absorb my entire income. What practical steps can I take to break this cycle and start building financial stability?
Ans: Many people face the challenge of earning a decent salary yet struggling to save. If your expenses absorb your entire income, it’s time to take control of your finances with a structured approach. Here’s how you can break the cycle and start building financial stability.

1. Track and Analyse Your Expenses
Identify spending leaks by tracking all expenses for a month.

Use spending tracker apps or a simple notebook to record daily expenses.

Categorise expenses into essentials (rent, food, utilities) and non-essentials (shopping, entertainment, eating out).

Spot unnecessary expenditures and set limits on avoidable expenses.

2. Set a Realistic Budget
Follow the 50-30-20 rule:

50% for needs (housing, bills, groceries).

30% for wants (shopping, entertainment, travel).

20% for savings and investments.

If savings seem difficult, reverse budgeting may work better. Allocate savings first, then spend what remains.

Automate bill payments to avoid late fees and unnecessary penalties.

3. Build an Emergency Fund
Set aside at least 6 months’ worth of expenses in a liquid fund.

Use a separate savings account for emergency funds to avoid spending it impulsively.

Automate transfers to this fund to ensure consistency.

4. Prioritise Saving Over Spending
Start small with savings if your expenses are tight. Even Rs 1,000 per month creates a saving habit.

Use automatic deductions to ensure savings before spending.

Increase savings percentage whenever you get a salary hike or bonus.

5. Cut Down on Unnecessary Expenses
Identify subscriptions you don’t use (streaming services, gym memberships).

Reduce frequent dining out and start cooking at home.

Choose budget-friendly alternatives for entertainment, shopping, and travel.

Negotiate for lower bills on rent, internet, and insurance.

6. Start Investing Wisely
Keep money working for you through investments rather than letting it sit idle.

Consider mutual funds through SIPs to build wealth over time.

Avoid investment-cum-insurance policies. Instead, opt for a separate term insurance and investments.

Invest in a mix of debt and equity based on your risk appetite.

7. Avoid Lifestyle Inflation
Salary hikes should increase savings, not expenses.

Maintain your current lifestyle and direct additional income towards savings.

Differentiate between needs and wants before making big purchases.

8. Plan for Future Goals
Define short-term and long-term goals (buying a home, early retirement, travel).

Assign a dedicated investment for each goal.

Adjust spending habits to align with your bigger financial vision.

9. Monitor and Adjust Regularly
Review your budget every 3-6 months to adjust based on changes in income or expenses.

Keep track of financial progress and celebrate small wins to stay motivated.

If needed, seek guidance from a Certified Financial Planner (CFP) like us for a customised financial strategy.

Final Thoughts
Breaking the paycheck-to-paycheck cycle requires discipline and consistency. By tracking expenses, budgeting wisely, saving first, and investing smartly, you can achieve financial stability and long-term wealth creation. Taking small but steady steps will lead to financial freedom in the long run.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner

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

...Read more

Samraat

Samraat Jadhav  |2248 Answers  |Ask -

Stock Market Expert - Answered on Apr 02, 2025

Asked by Anonymous - Apr 02, 2025Hindi
Listen
Money
I have been investing in shares for several years and have seen good returns, but with increasing market volatility, I'm considering diversifying into international stocks or alternative assets. What are the potential benefits and risks of each approach?
Ans: Diversifying into international stocks and alternative assets can be a strategic move, especially given your experience in financial analysis and investment planning. Here’s a breakdown of the benefits and risks of each approach:
International Stocks
Benefits are as follows:
- Diversification – Investing globally reduces dependence on domestic market conditions and spreads risk
- Access to High-Growth Markets – Some international markets, particularly emerging economies, may offer higher growth potential.
- Currency Appreciation – If the foreign currency strengthens against the INR, your returns could increase.
- Exposure to Leading Industries – Developed markets like the U.S. provide access to top tech, healthcare, and finance companies.

Risks involved in international markets are as follows:
- Currency Fluctuations – Exchange rate volatility can impact returns.
- Political & Economic Risks – Foreign regulations, trade policies, and economic instability can affect investments.
- Higher Transaction Costs – International investing often involves additional fees and taxes.
- Limited Information Access – Researching foreign companies may be more challenging compared to domestic firms.

Alternative Assets (Real Estate, Commodities, Private Equity, etc.)
Following are the benefits:
- Low Correlation with Stock Markets – Alternative assets often move independently of traditional markets, helping mitigate volatility.
- Inflation Hedge – Real assets like gold and real estate tend to retain value during inflationary periods.
- Potential for High Returns – Private equity and hedge funds can offer substantial gains if managed well.
- Portfolio Customization – Some alternative investments allow direct control, such as real estate or private businesses.

Risks involved are as follows:
- Illiquidity – Many alternative assets, such as private equity and real estate, are not easily sold.
- Complexity – These investments often require specialized knowledge and due diligence.
- Higher Fees – Alternative investments may have higher management costs and entry barriers.
- Market Uncertainty – Some assets, like cryptocurrencies, can be highly volatile.

Given your methodical approach to financial planning, you might find international ETFs a convenient way to gain global exposure while managing risk. Similarly, REITs or commodity funds could be a structured way to enter alternative assets without direct ownership complexities.

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x