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Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Nov 08, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Rajeev Question by Rajeev on Nov 08, 2023Hindi
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sir my son has just started earning and i want to save some amount from his salary to send him for higher studies.Kindly advise how i could do so.Now i am putting 20 thousand in FD from his salary every month.Kindly advise

Ans: It is difficult to give my opinion on this since I have no idea of what is the likely time horizon of your investment.

If you wish to send him within next 1-2 years, then probably a Recurring Deposit (RD) in a bank or a SIP in a debt fund is right way to invest. If the time horizon is longer, then SIP in a Debt fund, Hybrid Fund or an equity fund would be better, more tax efficient and more flexible. Please consult a financial advisor if you feel you need professional help for this.
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  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 23, 2024

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Dear Sir, My son is in 7th grade and I want to save 15 lakhs when he completes his 12th grade for his higher education. Pls advise best investment options for this. How much should I save every month and in which funds. Regards
Ans: planning for your child's education is a heartfelt commitment. Here’s a tailored strategy for you:

Investment Horizon: You have approximately 5 years to reach your goal. This is a medium-term horizon, and considering this, a balanced approach is advisable.
Monthly Savings: To accumulate 15 lakhs in 5 years, you would need to save around 25,000 per month, assuming an annual return of 10%. This is a ballpark figure and can vary based on market conditions and fund performance.
Investment Options:
Equity Mutual Funds: Given the 5-year horizon, equity funds can offer potentially higher returns. Opt for a mix of large-cap, mid-cap, and multi-cap funds to diversify and spread risk.
Debt Mutual Funds: To add stability to your portfolio, consider allocating a portion to debt funds or fixed-income instruments.
Tax Efficiency: Look for tax-saving mutual funds under Section 80C if you haven’t exhausted the limit. This can provide tax benefits and align with your investment goal.
Asset Allocation:
Equity: 60-70% for growth potential.
Debt: 30-40% for stability and capital preservation.
Review & Adjust: Periodically review your investments to ensure they are on track to meet your goal. If needed, adjust your investments based on performance and market conditions.
Education Inflation: Keep in mind the inflation rate for education expenses, which tends to be higher than general inflation. Adjust your savings goal periodically to account for this.
Emergency Fund: While saving for your child's education, ensure you have an emergency fund to cover unexpected expenses. This will prevent you from dipping into your education savings.
Remember, the key to achieving your goal is disciplined saving, informed investing, and regular monitoring. Your dedication to your son’s education is commendable, and with prudent planning, you can certainly realize this dream. Best wishes for your savings journey!

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Ramalingam

Ramalingam Kalirajan  |8482 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 17, 2024

Asked by Anonymous - Apr 16, 2024Hindi
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Sir , i am 35 yrs old earing 55k monthly , I am married and 2 son . I have no saving no sip ,my expenses are 25 k monthly so can you tell me how can I save for my child's future education .
Ans: Given your monthly income, expenses, and family responsibilities, it's essential to start saving and investing for your child's future education. Here's a simple plan to help you get started:

Budgeting and Savings:

Track Expenses: Monitor your monthly expenses to identify areas where you can reduce spending and increase savings.
Emergency Fund: Build an emergency fund equivalent to 3-6 months of expenses in a liquid and accessible form to handle unexpected expenses without tapping into your investments.
Start SIPs for Child's Education:

Investment Amount: Allocate a portion of your monthly savings towards SIPs in mutual funds to build a corpus for your child's education.
Asset Allocation: Consider a balanced allocation between equity and debt mutual funds based on your risk tolerance, time horizon, and financial goals.
Investment Duration: Start SIPs with a long-term perspective (e.g., 10-15 years) to benefit from the power of compounding and potential market growth.
Education Planning:

Calculate Future Expenses: Estimate the future cost of education for your children based on the current cost and expected inflation rate.
Investment Goal: Set a specific investment goal and target amount to achieve by the time your children reach college age.
Regular Review: Periodically review and adjust your SIPs and investment strategy to stay on track towards achieving your education savings goal.
Insurance Coverage:

Life Insurance: Ensure you have adequate life insurance coverage to provide financial security to your family in case of any unforeseen events.
Health Insurance: Invest in a comprehensive health insurance plan to cover medical expenses and ensure your family's well-being.
Recommendation:

Start Early: Begin investing as early as possible to benefit from the power of compounding and achieve your education savings goal.
Systematic Investment: Start SIPs in mutual funds to build a disciplined saving habit and accumulate wealth over time.
Financial Discipline: Maintain financial discipline, avoid unnecessary expenses, and stay committed to your investment plan to achieve your financial goals.
Consult with a financial advisor to create a personalized education savings plan tailored to your needs, helping you achieve your financial goals and secure your children's future.

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Dev

Dev Ashish  | Answer  |Ask -

MF Expert, Financial Planner - Answered on Jun 25, 2024

Asked by Anonymous - Jun 25, 2024Hindi
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Hello, I am 43 yrs old and have a govt job . M monthly salary is 1 lakhs. I have two kids of age 13yrs and 8yrs.. How can I save a good amount for higher studies if my kids.
Ans: While your monthly salary is Rs 1 lakh, the surplus available after expenses is not known. But to give you an idea about how much would the investment requirement for both kids, we can run a simulation.

For the elder child aged 13 years, you have about 5 years to save money. If we assume a goal cost of Rs 20 lakh (in today's value) and adjust it for 10% inflation over the next 5 years, then the corpus required in 5 years will be about Rs 32 lakh. And since details of existing savings aren't available, then at 50:50 Equity:Debt allocation, you will need to start investing Rs 37,500 per month. And this amount needs to be increased by at least 5% each year (assuming similar growth in income) for the next 10 years.

Similarly for the younger child aged 8 years, you have about 10 years to save money. If we assume a goal cost of Rs 20 lakh (in today's value) and adjust it for 10% inflation over the next 10 years, then the corpus required in 10 years will be about Rs 52 lakh. And since details of existing savings aren't available, then at 75:25 Equity:Debt allocation, you will need to start investing Rs 20,500 per month. And this amount needs to be increased by at least 5% each year (assuming similar growth in income) for the next 10 years.

We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then, you can start investing in a combination of largecap index funds, flexicap funds, midcap funds.

Thanks
Dev Ashish,
SEBI Registered Investment Advisor (Fee-Only RIA)
Founder, StableInvestor.com
Twitter (@Stableinvestor)

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.

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Moneywize

Moneywize   |181 Answers  |Ask -

Financial Planner - Answered on Sep 03, 2024

Asked by Anonymous - Sep 02, 2024Hindi
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I am 43-year-old and have a private job. My annual income is Rs 12 lakh and my monthly take home is 80,000. I have two kids of 15 and 8. How can I save a good amount for higher studies of my children?
Ans: Saving for Your Children's Higher Education


Understanding Your Needs

Given your annual income and monthly take-home, saving for your children's higher education is a commendable goal. To create a solid plan, consider the following:

• Estimated Costs: Research the projected costs of higher education for the courses your children might pursue. This includes tuition fees, living expenses, and other related costs.
• Time Horizon: Determine how many years you have to save. This will depend on your children's ages and their planned start dates for higher education.

Investment Strategies

Here are some effective investment strategies to consider:

1. Systematic Investment Plan (SIP) in Equity Mutual Funds:

• Benefits: Offers regular investment, potential for higher returns, and tax benefits under Section 80C of the Income Tax Act.
• Considerations: Involves market risk, and returns can fluctuate.

2. Public Provident Fund (PPF):

• Benefits: Provides guaranteed returns, tax benefits, and a long-term investment horizon.
• Considerations: Lower potential returns compared to equity funds.

3. National Pension Scheme (NPS):

• Benefits: Offers tax benefits, a pension plan, and the option to invest in various asset classes.
• Considerations: Lock-in period and potential for lower returns in certain asset classes.

4. Child Education Plans:

• Benefits: Often offer a combination of insurance and investment components.
• Considerations: Can be more expensive and may have limited flexibility.

5. Additional Tips

• Start Early: The earlier you start saving, the more time your investments have to grow.
• Diversify Your Investments: Spread your investments across different asset classes to manage risk.
• Review and Adjust Your Plan: Regularly assess your financial situation and adjust your investment strategy as needed.
• Consider Education Loans: As a backup plan, explore education loan options if you fall short of your savings goals.

6. Consulting a Financial Advisor

For personalised advice and to create a tailored plan, consider consulting a financial advisor. They can help you assess your risk tolerance, recommend suitable investment options, and track your progress toward your savings goals.

By following these guidelines and making consistent contributions to your savings, you can significantly increase your chances of providing your children with the financial resources they need for their higher education.

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Latest Questions
Nayagam P

Nayagam P P  |4699 Answers  |Ask -

Career Counsellor - Answered on May 21, 2025

Career
Sir, I have got 87% marks in mains. Please tell me a college where I can get a branch.
Ans: Aditi, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main/Advanced 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.

Also, please have some other back-up options instead of relying only on JEE/JoSAA/NITs/IIITs/GFTIs.

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 and a bright 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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