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Ramalingam

Ramalingam Kalirajan  |8227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 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
Asked by Anonymous - Jun 17, 2024Hindi
Money

Sir, I am a software employee currently earning 25L per annuam i have started invested in mutual funds, invested around 15L lumpsum in different funds such as 4.5L debt 10.5L in Equity (3.5L Large, 3L Midcap, 2L Smallcap, 2L Flexicap) if I have STP of 20K per month from ICICI Debt fund to ICICI Bluechip, and another STP from ICICI Bluechip to ICICI Debt fund, will I be able to overcome or avoid tax when I withdraw my money to buy a house after 15 years of 2 crores? assume if the gains are less than 1 lakh per annum will it apply to other fund manager as well as I have invested in different funds as well like ICICI, TATA, SBI?

Ans: Firstly, it’s impressive to see your well-structured investment approach. You’ve diversified your mutual funds across debt and equity, which is excellent for managing risk and optimizing returns. Investing Rs 15 lakhs with a mix of Rs 4.5 lakhs in debt and Rs 10.5 lakhs in various equity funds shows thoughtful planning. Your Systematic Transfer Plan (STP) strategy indicates a keen interest in maximizing returns while managing risks.

You asked about the tax implications and the effectiveness of your STP strategy for your goal of buying a house worth Rs 2 crores in 15 years. Let's break this down into manageable sections.

Systematic Transfer Plan (STP) Strategy
How STP Works
An STP allows you to transfer a fixed amount from one mutual fund to another at regular intervals. This is often used to move funds from a debt fund to an equity fund or vice versa. The primary benefits include:

Rupee Cost Averaging: Helps mitigate market volatility by averaging the purchase cost over time.
Regular Income Stream: Useful for systematic withdrawals in retirement.
Tax Efficiency: Potential to manage capital gains taxation more effectively.
Your Current STP Setup
You have set up an STP of Rs 20,000 per month from an ICICI Debt Fund to an ICICI Bluechip Fund and another STP from ICICI Bluechip Fund to ICICI Debt Fund. This strategy suggests a dynamic approach to managing your investments, aiming to balance risk and return.

Tax Implications
Capital Gains Tax on Mutual Funds
Equity Funds: Long-term capital gains (LTCG) on equity funds are taxed at 10% if the gains exceed Rs 1 lakh per annum. Short-term capital gains (STCG) are taxed at 15%.

Debt Funds: Long-term gains (after 3 years) are taxed at 20% with indexation benefits. Short-term gains are added to your income and taxed as per your slab rate.

Using STP for Tax Efficiency
Your strategy to transfer funds between debt and equity aims to minimize tax liabilities. Here's how:

Minimize Large Lump Sum Withdrawals: By transferring smaller amounts periodically, you can ensure that any capital gains realized in a financial year stay below the Rs 1 lakh threshold, thus avoiding LTCG tax on equity funds.
Utilize STCG/LTCG Efficiently: Regular transfers can help manage the timing of gains, potentially using annual exemptions effectively.
Applicability to Other Funds
The tax principles apply universally across all mutual fund schemes, irrespective of the fund house (ICICI, TATA, SBI, etc.). However, the effectiveness of your strategy can vary based on individual fund performance and market conditions.

Building a Rs 2 Crore Corpus
Assessing Your Current Portfolio
Equity Investments: Rs 10.5 lakhs divided into large-cap (Rs 3.5 lakhs), mid-cap (Rs 3 lakhs), small-cap (Rs 2 lakhs), and flexi-cap (Rs 2 lakhs). Equity investments typically offer higher returns over the long term but come with higher volatility.
Debt Investments: Rs 4.5 lakhs in debt funds provide stability and lower but more predictable returns.
Growth Potential
Given the long-term horizon of 15 years, your equity investments are likely to experience substantial growth, thanks to the power of compounding. However, market fluctuations can impact short-term returns, so it's important to stay invested and not react to market volatility.

Power of Compounding
Compounding is a powerful tool in wealth creation. Reinvesting earnings leads to exponential growth over time. The longer the investment period, the more pronounced the effects of compounding, especially in equity funds. Staying invested for 15 years allows your money to grow significantly.

Rebalancing and Monitoring
Importance of Rebalancing
Rebalancing your portfolio periodically ensures that your asset allocation remains aligned with your financial goals and risk tolerance. Over time, market movements can shift your original allocation, potentially increasing risk.

When to Rebalance
Consider rebalancing:

Annually: Review your portfolio once a year to ensure it aligns with your goals.
Market Movements: Significant market movements can alter your asset allocation.
Life Events: Changes in financial goals or life circumstances might necessitate rebalancing.
Monitoring Performance
Regularly review the performance of your mutual funds. Assess if they are meeting your expectations and adjust your strategy if necessary. It’s essential to stay informed and proactive in managing your investments.

Mutual Fund Categories and Benefits
Equity Mutual Funds
Equity funds invest in stocks and aim for high returns. They are suitable for long-term goals due to their growth potential.

Large-cap Funds: Invest in well-established companies. Lower risk compared to mid and small-cap funds.
Mid-cap Funds: Invest in medium-sized companies. Higher growth potential but also higher risk.
Small-cap Funds: Invest in smaller companies. Highest growth potential but also the highest risk.
Flexi-cap Funds: Invest across different market capitalizations. Offer diversification and flexibility.
Debt Mutual Funds
Debt funds invest in fixed-income securities like bonds and government securities. They offer stability and regular income.

Liquid Funds: Invest in short-term instruments. Suitable for emergency funds.
Short-term and Long-term Debt Funds: Based on the duration of investment, offering predictable returns.
Hybrid Mutual Funds
Hybrid funds invest in both equity and debt instruments, offering a balanced approach. They aim to provide growth potential along with stability.

Advantages of Mutual Funds
Professional Management: Managed by experienced fund managers who make investment decisions on your behalf.
Diversification: Reduces risk by investing in a wide range of securities.
Liquidity: Easy to buy and sell, providing flexibility.
Systematic Investment and Withdrawal Plans: Offers the flexibility to invest or withdraw regularly.
Risks of Mutual Funds
Market Risk: Equity funds are subject to market volatility.
Interest Rate Risk: Debt funds are affected by changes in interest rates.
Credit Risk: Risk of default in debt instruments.
Disadvantages of Index and Direct Funds
Index Funds
Passive Management: Follow a benchmark index. May not outperform the market.
Lack of Flexibility: Cannot take advantage of market opportunities.
Lower Returns: Actively managed funds can outperform index funds during volatile markets.
Direct Funds
Requires Expertise: Need significant market knowledge and constant monitoring.
Time-Consuming: Managing direct investments can be time-consuming.
Higher Risk: Without professional guidance, the risk of making poor investment choices increases.
Final Insights
Your STP strategy from debt to equity and vice versa is thoughtful. It aims to manage risk, optimize returns, and minimize tax liabilities. To achieve your goal of buying a Rs 2 crore house in 15 years, consider the following:

Stay Invested: Long-term investment in equity funds can yield substantial growth due to compounding.
Monitor and Rebalance: Regularly review and rebalance your portfolio to stay aligned with your goals.
Utilize Tax Efficiency: Use STPs effectively to manage capital gains and tax liabilities.
Seek Professional Guidance: A Certified Financial Planner can provide personalized advice and help you navigate your investment journey.
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.
Money

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Ramalingam

Ramalingam Kalirajan  |8227 Answers  |Ask -

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

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Dear Sir...Im turing 36 this Dec....I have home loan remaining around 33.5 lakh(EMI 31648/month)...Im looking forward to close this by end of 2028 and also to build corpus nearly 20 lakh new property down payment...my investments are as per below, 1.Quant/kotak/axis small cap direct growth- 10K/month(9 month old) 2.parag parikh ELSS tax saver- 2K/month(12 month old) 3.mirae asset ELSS tax saver-2K/month(12 month old) 4.quant ELSS tax saver-3K/month(16 month old) 5.Kotak ELSS tax saver-2K/month(16 month old) 6.SBI PSU direct plan-3K/month( 1 month) 6.Aditya birla sunlife PSU equity fund- 5K/month(1 month).apart from this investing stocks (invested 60K till date) need your expertise if I need to change funds...these are combined investment by me & my wife..TAX saver are required to avoid tax liability under 80C...how much I need to invest further to achive the goal.....
Ans: Optimizing Your Investment Strategy for Financial Goals
It's commendable that you have a clear vision for your financial future. Balancing a home loan, tax-saving investments, and building a corpus for property down payment requires a strategic approach. Let's evaluate your current investments and suggest improvements.

Evaluating Current Investments
You have diversified your investments across various mutual funds and ELSS schemes. This is a good start. Here’s a brief analysis of your portfolio:

Small Cap Funds: Investing Rs. 10K/month in small cap funds for 9 months shows an aggressive growth strategy. Small cap funds offer high returns but come with higher risk.

ELSS Tax Saver Funds: You have significant investments in ELSS to avail tax benefits under Section 80C. This is prudent as it serves dual purposes of tax saving and wealth creation.

PSU Equity Funds: Your recent investments in PSU equity funds suggest a strategic shift towards stability. PSUs can offer relatively stable returns and dividends.

Stock Investments: Your stock investments of Rs. 60K till date indicate a hands-on approach to wealth building. Stock picking requires research and time, which you seem committed to.

Financial Goals: Home Loan Closure and Down Payment Corpus
Closing Home Loan by 2028
To close your home loan by 2028, you need to focus on prepayment strategies. Prepaying your loan can significantly reduce the interest burden. Here’s how you can approach it:

Prepayment Plan: Allocate any annual bonuses, increments, or windfall gains towards loan prepayment. Even small prepayments can shorten the loan tenure.

Increase EMI Amount: If possible, increase your EMI by a small percentage each year. This reduces the principal faster.

Building a Corpus for Property Down Payment
You aim to accumulate Rs. 20 lakh for a property down payment. Given your investment horizon of 4-5 years, here’s a structured approach:

Systematic Investment Plan (SIP): Continue your SIPs but focus on a mix of mid-cap, multi-cap, and balanced funds. These funds balance growth and stability.

Monthly Investment: To accumulate Rs. 20 lakh, calculate the required monthly SIP amount. This should include a realistic growth rate based on past performance.

Optimizing Your Portfolio
Reviewing Fund Performance
Small Cap Funds: Continue with small cap funds but monitor their performance regularly. Small cap funds can be volatile, so stay updated with their performance and market trends.

ELSS Funds: Consolidate your ELSS investments if needed. Too many funds can lead to overlapping and diluted returns. Choose the best-performing ELSS funds and focus on them.

PSU Funds: Continue with PSU funds for stability and dividends. However, ensure they align with your risk profile and long-term goals.

Suggested Funds for Additional Investment
To invest an additional Rs. 20K per month, consider the following types of funds:

Multi-Cap Funds: These funds offer flexibility to invest across different market capitalizations, providing a balanced growth approach.

Balanced Advantage Funds: These dynamically adjust the allocation between equity and debt based on market conditions, offering stability with growth.

Mid-Cap Funds: Mid-cap funds offer a balance between the high risk of small caps and the stability of large caps.

Focused Equity Funds: These funds invest in a concentrated portfolio of high-conviction stocks, potentially offering high returns with a focused risk approach.

Hybrid Funds: These funds invest in both equity and debt instruments, providing balanced risk and return.

Creating a Diversified Portfolio
Sample Allocation
Multi-Cap Funds: Rs. 5,000/month
Balanced Advantage Funds: Rs. 5,000/month
Mid-Cap Funds: Rs. 5,000/month
Focused Equity Funds: Rs. 3,000/month
Hybrid Funds: Rs. 2,000/month
This allocation ensures diversification across various asset classes, reducing risk while aiming for optimal returns.

Regular Monitoring and Rebalancing
Regularly monitor your investments and rebalance your portfolio annually. This ensures your portfolio remains aligned with your financial goals and risk tolerance.

Conclusion
Your current investment strategy is well thought out. By optimizing your portfolio and focusing on a mix of funds, you can achieve your financial goals of closing your home loan and building a property down payment corpus.

Continue your disciplined approach, stay informed, and adjust your investments as needed. Seek guidance from a Certified Financial Planner for personalized advice and to stay on track with your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Money
Hi Sir, I have started investing in below mutual funds from the past 3 years Tata Small Cap Fund - Direct Plan - Growth 10k SIP Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - Growth 10k SIP Aditya Birla Sun Life Frontline Equity Fund -Growth-Direct Plan 10k SIP HSBC Midcap Fund - Direct Growth 10k SIP ICICI Prudential All Seasons Bond Fund - Direct Plan - Growth 10k SIP ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan Growth 10k SIP ICICI Prudential India Equity FOF Direct Plan Growth 10k SIP Kotak Flexicap Fund - Direct Growth 10k SIP can you analyze my portfolio and let me know for my 5cr corpus for next 10 years one more question what if I STP of 10k from Tata small cap to Tata nifty, and Tata nifty to Tata small cap will the capital gains taxes can be avoided ?
Ans: Your commitment to investing Rs. 80,000 per month in mutual funds is commendable. Let's analyze your portfolio and see how you can achieve your goal of a Rs. 5 crore corpus in the next 10 years.

Your Current Portfolio
Tata Small Cap Fund - Direct Plan - Growth

Small cap funds offer high growth potential but come with high risk. These funds invest in smaller companies that can deliver high returns but can also be volatile.

Tata Nifty Midcap 150 Momentum 50 Index Fund - Direct Plan - Growth

Index funds track the performance of a specific index. While they offer diversification, they are passively managed and may not outperform actively managed funds.

Aditya Birla Sun Life Frontline Equity Fund - Growth - Direct Plan

This is a large cap fund, investing in well-established companies. Large cap funds provide stability and consistent returns with lower risk compared to small and mid cap funds.

HSBC Midcap Fund - Direct Growth

Mid cap funds invest in medium-sized companies. They offer a balance between risk and return, with potential for good growth.

ICICI Prudential All Seasons Bond Fund - Direct Plan - Growth

Bond funds invest in debt securities and provide stable returns with lower risk. They are suitable for conservative investors looking for regular income.

ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan Growth

Sectoral funds invest in specific sectors. They offer high growth potential but come with high risk due to lack of diversification.

ICICI Prudential India Equity FOF Direct Plan Growth

Fund of funds (FOF) invest in other mutual funds. They offer diversification but come with higher expense ratios due to multiple layers of management fees.

Kotak Flexicap Fund - Direct Growth

Flexicap funds invest across market capitalizations. They provide flexibility to invest in large, mid, and small cap stocks based on market conditions.

Portfolio Assessment
Your portfolio is diversified across various types of funds. However, it has a high concentration in direct plans and index funds. Let's discuss the disadvantages of direct plans and index funds.

Disadvantages of Direct Plans
Direct plans require active management and knowledge of the market. They may save on commission costs but can be less beneficial if not actively monitored. Investing through a certified financial planner can provide professional advice and better fund selection.

Advantages of Investing Through Mutual Fund Distributors (MFD)
Professional Advice
MFDs provide expert advice and help in selecting the right funds based on your financial goals and risk appetite. They have in-depth market knowledge and experience.

Personalized Portfolio Management
MFDs offer personalized portfolio management. They continuously monitor your portfolio and make adjustments as needed to align with your goals.

Regular Updates and Reviews
MFDs provide regular updates on your investments and conduct periodic reviews. They ensure your investments are on track to meet your financial goals.

Simplified Investment Process
MFDs simplify the investment process. They handle all the paperwork, follow-up, and compliance requirements, saving you time and effort.

Disadvantages of Investing Directly
Lack of Professional Guidance
Investing directly means you miss out on professional guidance. Making informed decisions requires market knowledge, which can be challenging for individual investors.

Higher Risk of Mistakes
Without professional advice, the risk of making investment mistakes increases. Wrong fund selection or timing can lead to suboptimal returns.

Time-Consuming
Managing investments directly is time-consuming. It requires continuous monitoring and adjusting based on market conditions, which can be challenging for busy professionals.

Emotional Biases
Investing directly can lead to emotional biases. Fear and greed can drive decisions, leading to poor investment choices.

Disadvantages of Index Funds
Index funds are passively managed and may not outperform actively managed funds. They strictly follow the index, which means they can miss out on opportunities to outperform the market. Actively managed funds, on the other hand, have professional fund managers aiming to beat the market.

Investment Strategy for Rs. 5 Crore Corpus
Achieving a Rs. 5 crore corpus in 10 years requires disciplined investing and a well-planned strategy.

Maintain a Balanced Portfolio
Balance your portfolio with a mix of equity and debt funds. Equity funds provide high returns, while debt funds offer stability.

Equity Funds

Allocate a significant portion to equity funds for high growth potential. Include a mix of large cap, mid cap, and small cap funds. Flexicap funds can provide flexibility to adjust based on market conditions.

Debt Funds

Include debt funds for stability and regular income. They reduce overall portfolio risk and provide cushion during market volatility.

Systematic Investment Plan (SIP)
Continue your SIPs to ensure disciplined investing. SIPs help in averaging out the cost of investment and reduce the impact of market volatility.

Diversify Across Fund Houses
Diversifying across different fund houses reduces risk. Different fund houses have different management styles and performance records.

Regular Review and Rebalancing
Review your portfolio regularly and rebalance if needed. Market conditions change, and rebalancing ensures your portfolio stays aligned with your goals.

Avoid Frequent Switching
Frequent switching between funds can lead to capital gains taxes and exit loads. Stick to your investment plan and make changes only if necessary.

Understanding Systematic Transfer Plan (STP) and Tax Implications
STP allows transferring a fixed amount from one mutual fund to another regularly. It helps in averaging out the investment cost.

STP from Tata Small Cap to Tata Nifty

If you use STP to transfer funds, it is considered a redemption from one fund and an investment in another. This triggers capital gains taxes.

Capital Gains Taxes

Short-term capital gains (STCG) for equity funds are taxed at 15%. Long-term capital gains (LTCG) above Rs. 1 lakh per year are taxed at 10%. For hybrid debt funds, STCG is taxed as per your income tax slab, and LTCG is taxed at 20% with indexation benefits.

Avoid frequent STPs to minimize tax liabilities. Stick to your long-term investment plan.

Power of Compounding
Compounding is your best friend in long-term investing. The returns on your investments generate additional returns, leading to exponential growth.

Example of Compounding
If you invest Rs. 10,000 per month in an equity fund with an average annual return of 12%, in 10 years, your investment grows significantly due to compounding. The longer you stay invested, the more powerful the compounding effect.

Mutual Funds: Categories, Advantages, and Risks
Large Cap Funds

Invest in well-established companies
Offer stability and consistent returns
Lower risk compared to small and mid cap funds
Mid Cap Funds

Invest in medium-sized companies
Balance between risk and return
Potential for good growth
Small Cap Funds

Invest in smaller companies
High growth potential but high risk
Suitable for aggressive investors
Debt Funds

Invest in fixed-income securities
Provide stable returns with lower risk
Suitable for conservative investors
Hybrid Funds

Mix of equity and debt funds
Balance between risk and return
Flexibility to adjust based on market conditions
Sectoral Funds

Invest in specific sectors
High growth potential but high risk
Lack of diversification
Fund of Funds (FOF)

Invest in other mutual funds
Offer diversification
Higher expense ratios due to multiple layers of fees
Final Insights
Your disciplined investment in mutual funds is impressive. To achieve a Rs. 5 crore corpus, maintain a balanced portfolio, continue your SIPs, and avoid frequent switching to minimize tax liabilities. Regularly review and rebalance your portfolio to stay aligned with your goals.

Avoid direct and index funds for better professional management and potential outperformance. Utilize the power of compounding by staying invested for the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4421 Answers  |Ask -

Career Counsellor - Answered on Apr 13, 2025

Asked by Anonymous - Apr 12, 2025Hindi
Listen
Career
i got 86.02 percentile in jee mains, i am under SC category from WEST BENGAL. can i get NIT DURGAPUR CSE BRANCH or any other branch
Ans: Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4421 Answers  |Ask -

Career Counsellor - Answered on Apr 13, 2025

Asked by Anonymous - Apr 12, 2025Hindi
Listen
Career
What are the chances to get admission for my son in NIT Trichy or Surathkal or Warangal if he gets around 149 marks in the Apr session of JEE mains 2025. We are from general category & would like to pursue for either Data Science or Electronics of Chemical Engineering. If not these institutes what are the chances for other govt institutes.
Ans: Here is, How to Predict Your Son's Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Son's Admission Chances Using JoSAA Data
Step 1: Collect His Key Details
Before starting, note down the following details:

His JEE Main percentile
His category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
His Preferred institute types (NIT, IIIT, GFTI)
His Preferred locations (or if he is open to any location in India)
List of at least his 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If he is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select His Preferred Academic Program (Branch)
Enter the branches he is interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your Son's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4421 Answers  |Ask -

Career Counsellor - Answered on Apr 13, 2025

Listen
Career
My son got 94.56 percentage in jee mains in OBC category.he passed 12th delhi school.his residency in gurugram haryana.which college he can gwt
Ans: Here is, How to Predict Your Son's Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Son's Admission Chances Using JoSAA Data
Step 1: Collect His Key Details
Before starting, note down the following details:

His JEE Main percentile
His category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
His Preferred institute types (NIT, IIIT, GFTI)
His Preferred locations (or if he is open to any location in India)
List of at least his 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If he is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select His Preferred Academic Program (Branch)
Enter the branches he is interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your Son's admissions!

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Milind Vadjikar  |1169 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 13, 2025

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Ramalingam

Ramalingam Kalirajan  |8227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2025

Asked by Anonymous - Apr 12, 2025Hindi
Money
I've recently lost my job and I'm in the process of looking for new opportunities. While I manage my job search, I'm also facing a situation where my father is in the hospital, and I need to manage both my finances and care for him. I have some savings, but I'm unsure how to balance my financial needs with the hospital expenses and ongoing bills. How can I manage my finances in the short term while looking for a job and dealing with hospital-related costs? Should I use my emergency fund for these expenses, or should I prioritize keeping that fund intact for more severe emergencies? I'm concerned that if I use too much of my savings, I may not be able to cover my basic living expenses if the job search takes longer than expected.
Ans: I’m truly sorry to hear about your current situation. It is tough to manage job loss and a family medical emergency at the same time. You’re showing great strength by trying to plan wisely. Let us now work through this together, step by step, with a simple and balanced plan.

Let’s focus on protecting your savings, handling current bills, and preparing for the next 3–6 months with a calm approach.

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Review All Financial Resources First

• List your current savings, emergency fund, and other funds in bank accounts.

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• Note all monthly expenses like rent, groceries, bills, and hospital costs.

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• If you have any fixed deposits or investments, mark which ones can be broken easily without penalty.

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• Avoid withdrawing from long-term mutual funds unless there is no other option.

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• Create a written note of how long your money will last without any income.

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Emergency Fund: Yes, Use It – But Mindfully

• Emergency fund is made for times like this. You can use it now.

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• Use it first for medical and basic monthly needs only.

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• Avoid spending it on non-essential expenses or lifestyle extras.

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• Try to keep at least 1–2 months’ worth of expenses in reserve even now.

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• You can refill this fund later once you are employed again.

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Cut Down on Non-Essential Spending

• Pause or reduce spending on entertainment, subscriptions, and non-urgent items.

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• Avoid buying anything on EMI or credit during this phase.

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• Inform your family gently about the need to cut back temporarily.

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• Cook at home, reduce travel, and delay purchases like gadgets or clothes.

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Talk to Hospital About Payment Options

• Some hospitals allow part payments or give discounts for cash or insurance claims.

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• Ask them clearly if any help is available for people in financial stress.

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• If your father has any insurance cover, submit all bills properly.

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• If any relatives can support temporarily, accept it as a short-term help.

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Temporarily Pause Long-Term Investments

• If you have SIPs or recurring investments running, consider pausing for now.

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• Most SIPs allow you to stop for a few months without penalty.

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• It is better to pause SIPs than to take a loan or credit card advance.

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• You can restart all investments later once income restarts.

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Prioritise Monthly Essentials First

• Make a list of top priority expenses – rent, groceries, electricity, transport, medicines.

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• Pay these without delay.

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• Delay or reduce less-important expenses like personal shopping, dining out, or travel.

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• If any credit card bills are due, pay minimum amount to avoid penalty.

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Job Search: Stay Active But Calm

• Spend at least 3–4 hours daily on job search and networking.

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• Update your resume, contact ex-colleagues, register on portals.

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• Tell friends and well-wishers that you're open to short-term freelance work too.

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• Any side income like part-time teaching, writing, or consulting will reduce pressure.

Plan For 3 Months, Then Review

• Make a plan for the next 3 months based on the funds you have now.

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• List expected income (even if zero), known expenses, and gaps.

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• Revisit your plan monthly and adjust as the situation changes.

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• Keep written records of expenses. This will help you manage better.

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Avoid Taking Personal Loans or Credit Advances

• This is not a good time to take a new loan.

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• Personal loans or credit card EMIs will add stress later.

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• Use your own cash reserves or ask for trusted family help before using credit.

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Once Job Resumes, Rebuild Step by Step

• Start rebuilding your emergency fund first.

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• Then restart your paused SIPs.

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• Set small financial goals like clearing any dues or saving for 1 month’s expenses.

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• Slowly get back to normal pace without rushing.

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Emotionally Stay Stable and Rest When Needed

• This is a tough phase but it will pass.

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• Take help from friends, counsellors or support groups if stress gets heavy.

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• Take care of your health, sleep, and food. You need energy now.

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• Talk to your child simply and gently. Kids understand more than we think.

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Finally

You’re already doing the right thing – asking for help and planning ahead.

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This phase will test your strength but also show your courage.

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Use the emergency fund wisely. Cut extra expenses.

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Pause investments, keep job search active, and stay calm.

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Even small income during this time will help manage better.

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Once the job returns, you can rebuild everything with more clarity.

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You are not alone. Take support wherever you find it.

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Your family is lucky to have you managing so carefully and wisely.

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Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |8227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 12, 2025

Asked by Anonymous - Apr 12, 2025Hindi
Money
I plan to buy a property in the next 3 years, either for personal use or investment. I currently save 20,000 per month and have RS 5,00,000 saved up for the down payment and related costs (registration, taxes, interiors, etc.). Given the current market conditions, should I keep my savings in low-risk options like a high-interest savings account or fixed deposits, or should I invest in mutual funds or debt funds for higher returns? How should I balance safety and growth? Also, how much should I budget for the additional costs involved in buying property? With other financial responsibilities (like a home loan EMI of Rs 30,000 and child education expenses), how can I prioritize saving for this property while managing everything else? Lastly, should I plan for future property-related expenses like maintenance once I buy the property?
Ans: Your clarity of thought and saving habit of Rs 20,000 per month is a big strength. You already saved Rs 5,00,000 for the down payment, which is a good head start. Let’s now create a clear and simple 360-degree plan to help you buy the property while handling all other financial priorities.

Let us now understand where to park your savings, how to budget for additional costs, how to balance EMI and education, and how to plan for future property expenses.

Below is a detailed, structured, and simplified guide.

Saving for Down Payment: Safety Is Key

You plan to buy the property in 3 years. This makes your goal short-term.

So, your priority must be safety. Not return.

Return is secondary for short-term goals. Capital protection is more important.

That’s why equity mutual funds are not suitable here. They are risky in the short term.

Even debt funds are not fully safe if you are not choosing the right type.

Below are suitable options:

Keep your Rs 5,00,000 in a high-interest savings account. Choose an account from a safe and reputed private or PSU bank.

Fixed deposit with a 2–3-year horizon is also good. Prefer banks over NBFCs.

You may use a low-duration debt mutual fund or short-term debt fund. Only if you are ok with small fluctuations.

Avoid aggressive hybrid, equity savings funds or arbitrage funds. These are not ideal for 3-year goals.

Don’t invest in index funds or ETFs for short-term goals. They don’t give downside protection.

If you use debt mutual funds, understand the new tax rule. Gains will be taxed as per your income slab.

A combination of FD and short-term debt fund can give better liquidity.

If you prefer mutual funds, go for regular plans through a MFD with CFP credential. They can help you monitor the risk better.

Budgeting for Property: Include All Costs

Most buyers only plan for down payment. But that is only one part.

There are many hidden or semi-visible expenses. Please plan for them now.

Let us see what they are:

Stamp duty and registration charges. This can be 7% to 10% of property cost.

Interiors and furniture. Even basic furnishing can cost 10% of property price.

Brokerage and lawyer fees. If applicable, can go up to 1% or more.

Advance society maintenance and deposits. Usually required for new apartments.

GST on under-construction property. This is 5% without input credit.

Home insurance. One-time premium if you want to cover structure damage.

Parking space charges and clubhouse deposit. Often missed in budgeting.

Shifting and set-up costs. For appliances, curtains, installation, etc.

So please add 15% to 20% of property value as “extra costs”. Keep this buffer aside.

Your current Rs 5,00,000 may not be enough for all these. But you still have 36 months.

So, saving Rs 20,000 monthly with this goal in mind is a smart step.

Also, don’t use mutual fund SIPs for these costs. It can fluctuate when you need it.

Balancing EMI and Education While Saving for Property

Right now, you have an EMI of Rs 30,000 and child education expenses.

You also save Rs 20,000 monthly. Let’s now look at how to balance all three.

Don’t stop your Rs 20,000 saving. This is the key to meeting your 3-year goal.

You may increase your savings by Rs 5,000 to Rs 10,000, if income grows.

Use a separate bank account for this property goal. So you don’t mix other needs.

Try to prepay EMI partly once or twice a year. It reduces long-term interest burden.

If you expect large expenses for your child (school fee, coaching), plan those in advance.

Avoid taking another loan for interiors or registration. That can stretch your EMI limit.

Keep at least 3–4 months EMI as emergency reserve. Don’t touch this fund.

If possible, keep your child’s education funding in a different SIP. Don’t mix with this.

Don’t redeem long-term investments like equity mutual funds for this property. It affects future goals.

Plan for Future Property Expenses

Once you buy the house, expenses don’t stop there. Many people forget this.

These costs can affect your budget if not planned early.

Society maintenance charges. Can be Rs 2,000 to Rs 8,000 monthly depending on size and location.

Annual property tax to municipality. Must be paid every year.

Repairs and painting. Especially after 3–5 years of possession.

Appliances breakdown or upgrade. Geysers, AC, filters, etc.

Rent loss if you are not using it and it remains vacant.

Loan insurance premium if you take credit life insurance.

You may also pay for security deposit if giving on rent.

These are all recurring. So your cash flow must be ready for them.

Try to start a small SIP of Rs 2,000 to Rs 3,000 for these future expenses.

Choose a low-risk hybrid or ultra-short fund. Withdraw only when needed.

Also, keep an annual reminder to review these expenses.

How to Prioritise This Goal Among Many

When you have multiple responsibilities, planning becomes more important.

The key is to assign a specific goal to each fund.

Let us prioritise together:

Continue Rs 20,000 monthly savings only for property down payment.

Do not use emergency funds for property.

Maintain 6 months of expenses in a separate liquid fund or savings account.

Keep child education in a separate SIP or PPF. Don’t mix it with home savings.

Do not stop EMI payment or delay it. Your credit score may suffer.

Avoid loans for furniture and interiors. Save slowly and spend only what you saved.

Keep your insurance premiums paid on time. Don’t miss them.

Use bonuses or gifts to increase savings for the property goal.

Try to control lifestyle inflation during this 3-year period. It helps a lot.

What Happens If Property Price Goes Up?

There is a chance prices may rise in 3 years.

You must be prepared in two ways.

Increase monthly savings gradually every year. Even Rs 2,000 more can help.

If prices rise sharply, consider a smaller house. Don’t stretch your loan too much.

Do not compromise on education and long-term goals for a house.

Stay disciplined. Don’t rush just because prices rise. Focus on value, not fear.

Should You Buy for Investment or Use?

You are unsure if it will be for personal use or investment.

Let us clarify this point as it changes planning:

If for personal use, prioritise location, safety, commute, and nearby schools.

If for investment, do a rental yield check. Don’t expect high appreciation.

Real estate investment has hidden costs, poor liquidity, and irregular returns.

If not planning to live there for 7+ years, rethink buying. Renting may be cheaper.

Don’t buy just because others are buying. Make the decision fully based on utility.

Your priority must be comfort, not return, if it’s for staying.

Also remember property can’t be sold quickly if needed. So, plan cash needs carefully.

Don’t over-borrow. Loan EMI + child education must not cross 50% of your income.

Finally

You are thinking ahead. That is already a strong foundation.

Your saving habit, EMI discipline, and clear goal are all positive points.

By keeping your Rs 5,00,000 in low-risk instruments, and adding Rs 20,000 monthly, you are on track.

Please avoid risky products for this goal.

Also, budget for all visible and hidden property costs.

Balance EMI, education and savings with simple, consistent steps.

Keep property-related expenses and long-term goals separate.

Review your plan every 6 months.

A Certified Financial Planner can help you align all your goals peacefully.

Stay patient, stay focused, and protect your peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Milind

Milind Vadjikar  |1169 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Apr 12, 2025

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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