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Should a 46-year-old invest 3-5 lakhs annually to reach a 3-5 crore corpus in 9 years?

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 09, 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
Chandra Question by Chandra on Sep 07, 2024Hindi
Money

**Subject:** Request for Investment Review and Future Corpus Estimation Dear Mr.Nikunj, I hope this message finds you well. I wanted to review my current investment portfolio and seek your expert advice regarding the future growth potential, as I aim to build a corpus of at least INR 3 - 5 crores by the time my daughters turn 18 years old. Is this figure realizable? Here’s a breakdown of my current investments: 1. **Mirae Asset Large & Midcap Fund (Direct Growth)** – INR 5,000 monthly - Current value: INR 135,281 2. **Canara Robeco Small Cap Fund (Direct Growth)** – INR 10,000 monthly - Current value: INR 210,164 3. **Quant Small Cap Fund (Direct Plan Growth)** – INR 5,000 monthly - Just started; current value: INR 5,190 4. **ICICI Prudential Balanced Advantage Fund (Growth)** – INR 20,000 monthly - Current value: INR 583,113 5. **HDFC Balanced Advantage Fund (Growth)** – INR 15,000 monthly - Current value: INR 503,604 6. **SBI Balanced Advantage Fund (Regular Growth)** – INR 15,000 monthly - Current value: INR 321,491 7. **Sukanya Samriddhi Yojana (SSY)** – INR 50,000 annually for my 9-year-old daughter - Current value: INR 565,805 (since 2016) 8. **Provident Fund (PF)** – Current balance: INR 10 lakh 9. **Tata AIA Life Insurance Fortune Pro ** – Started last year INR 150,000 to be paid for 5 years till 2027 10. SBI Child Plan Smart Scholar - Completed INR 500,000 Total Investment for 5 Years in 2024. From this year every financial year I plan to invest my working bonus of INR 3 Lacs to INR 5 Lacs every year as a bulk investment and diversify in different funds. I am 46 years old and plan to continue working and investing for another 5 to 6 years due to health reasons. My spouse is 37, and we have two daughters aged 9 and 5. My goal is to accumulate a corpus of at least INR 3 to 5 crores by the time my daughters reach 18 years of age. Based on my current investments, do you think this target is achievable within the given timeframe? I would greatly appreciate any suggestions or adjustments you might recommend to help reach this goal. Thank you for your guidance.

Ans: You’ve put together a well-diversified portfolio with a mix of equity and hybrid funds, Sukanya Samriddhi Yojana (SSY), Provident Fund (PF), and insurance-linked investments. Each of these investments serves a different purpose, and it’s clear that you have a strong focus on building wealth while securing your daughters' future.

Given that you plan to invest a significant portion of your bonus in the coming years, it’s important to assess whether your current strategy will meet your target corpus of Rs 3-5 crores when your daughters turn 18. Let’s evaluate your portfolio in detail.

Assessment of Equity Mutual Funds
Mirae Asset Large & Midcap Fund, Canara Robeco Small Cap Fund, Quant Small Cap Fund: These funds are growth-oriented with potential for substantial returns over the long term. Your monthly SIPs in these funds are well-placed, and their current values indicate a positive trend. However, as small-cap funds tend to be more volatile, it’s important to monitor them regularly and rebalance if necessary.

ICICI Prudential Balanced Advantage Fund, HDFC Balanced Advantage Fund, SBI Balanced Advantage Fund: These funds offer a balanced approach by investing in a mix of equity and debt. They are designed to manage volatility, making them a stable choice for medium-term goals. Your consistent investments in these funds are helping you build a solid foundation for your corpus.

Given that you are contributing significant amounts to Balanced Advantage Funds, this shows a prudent approach to managing risk while aiming for growth. However, it’s crucial to ensure that these funds align with your risk tolerance as you near retirement.

Sukanya Samriddhi Yojana (SSY) for Your Daughter
Sukanya Samriddhi Yojana (SSY): Your annual contribution to SSY for your 9-year-old daughter is a wise choice. This scheme offers guaranteed returns and tax benefits, making it an excellent option for long-term, low-risk investment. With the current value of Rs 5,65,805, you are on track, but it's essential to continue this contribution until maturity to maximize the benefit for your daughter's higher education or marriage expenses.
Provident Fund (PF)
Provident Fund (PF): Your PF balance of Rs 10 lakh is a significant component of your retirement savings. The regular contributions and employer match provide a stable, low-risk return, which is crucial for wealth preservation. This fund will serve as a backbone for your retirement corpus.
Insurance-Linked Investments
Tata AIA Life Insurance Fortune Pro: Insurance-cum-investment products like these generally have lower returns compared to pure investment products like mutual funds. While they provide life cover, the investment returns may not be sufficient to meet your high-growth goals. You might want to evaluate the performance after the lock-in period and consider redirecting future premiums into mutual funds if the returns are unsatisfactory.

SBI Child Plan Smart Scholar: Having completed your investment in this child plan, it's time to assess its performance. If the returns are on the lower side, consider using the maturity proceeds to invest in a high-growth equity fund or balanced fund to further boost your corpus.

Planned Bulk Investments
Future Bulk Investments: Your plan to invest Rs 3-5 lakhs annually as a lump sum from your bonuses is a great strategy. However, it's essential to deploy this lump sum in a staggered manner, like a Systematic Transfer Plan (STP), to mitigate market volatility. You might consider adding these funds to existing high-performing equity funds or explore new opportunities in growth-oriented funds.
Future Growth Potential and Target Realization
Assessing the Achievability of Rs 3-5 Crore Corpus
Your goal of building a corpus of Rs 3-5 crores by the time your daughters turn 18 is ambitious but achievable. However, it will require careful planning and disciplined execution. Here are some key points to consider:

Time Horizon: With a 9-year and a 5-year time horizon, your portfolio should focus on growth-oriented investments in the earlier years, gradually shifting towards more stable, low-risk assets as you near the target date. This will help protect your accumulated wealth from market volatility.

Asset Allocation: Currently, you have a mix of equity and balanced funds. As your daughters approach 18, you might want to shift a portion of your equity investments into safer options like debt funds or fixed deposits to preserve the capital.

Inflation and Taxation: Consider the impact of inflation on your target corpus. What may seem like a large sum today may not have the same purchasing power in the future. Also, be mindful of the tax implications on your investments, particularly on the returns from mutual funds and insurance plans.

Suggestions for Portfolio Adjustments
Enhance Equity Exposure: While you have a good mix of funds, increasing your allocation to high-growth equity funds can help you reach the Rs 5 crore target. Consider redirecting the future premiums of your insurance plans or part of your Balanced Advantage Fund investments into aggressive equity funds.

Surrender Underperforming Insurance Plans: If your Tata AIA Life Insurance and SBI Child Plan do not meet expectations, consider surrendering them after evaluating the surrender value and investing the proceeds in higher-return options.

Regular Reviews and Rebalancing: The market environment and your personal circumstances may change over time. Regular reviews of your portfolio and timely rebalancing will help ensure that your investments remain aligned with your goals.

Avoid Over-Diversification: While diversification is important, too much of it can dilute returns. Focus on a few high-performing funds and avoid spreading your investments too thin.

Risk Management: As you approach the end of your working years, it’s crucial to reduce exposure to high-risk assets. Gradually move a portion of your investments into safer instruments like debt funds, bonds, or even a fixed deposit.

Final Insights
Your dedication to building a secure financial future for your daughters is commendable. With consistent and strategic investments, your target of Rs 3-5 crores is within reach. The key will be maintaining a disciplined approach, regularly reviewing your portfolio, and making necessary adjustments based on market conditions and life changes.

Remember to keep an eye on both growth and safety as you transition into retirement. By doing so, you can confidently achieve your financial goals and provide your daughters with a strong financial foundation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Sunil

Sunil Lala  |214 Answers  |Ask -

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Asked by Anonymous - Dec 31, 2023Hindi
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I have a corpus of 1 cr in mf with an ongoing monthly sip of 85k..have invested 6 lacs in stocks..I am investing 1.5 lacs each In both ppf and sukanya samridhi scheme for the past 5 years.. I also have invested in hdfc sanchay annuity plan around 5.5 lacs annually for the past 4 years which will give me a monthly income from the 12th years of 50 k.. I have FDs of around 3 cr which is giving me a return of 7% annually.. I have 2 kids and I am 43 yrs old. I am looking at building a corpus of 40 cr plus on my retirement.. I have been investing in mf since 2017.. The funds that I am investing in are 1) axis.mid cap 2) canara robeco emerging equities 3) Nippon small cap 4) Parag Parikh flexi cap 5) quant flexi cap 6) Mirae asset mid and larg cap 7) icici nifty 50 index 8) SBI focussed equity 9) hdfc balanced advantage fund 10) SBI equity hybrid fund Plz suggest if these funds are fine to reach a target of 40 cr plus in the next 17 years... My kids are 10 and 4 yrs old respectively and I want to keep 1.5 cr plus for their education. When they attain the age of 18 years respectively. Kindly suggest do I need to change the investment plan and mutual funds or should I continue with the same strategy to achieve my goal.
Ans: You can not reach to your target of 40 crores plus education corpus of 1.5 cr for 2 children as most of your money is getting invested in fixed income type of instruments, since your goal is still 17 years away you can convert theses fixed income in mutual funds.

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 09, 2024

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**Subject:** Request for Investment Review and Future Corpus Estimation Dear Mr.Ramalingam, I hope this message finds you well. I wanted to review my current investment portfolio and seek your expert advice regarding the future growth potential, as I aim to build a corpus of at least INR 3 - 5 crores by the time my daughters turn 18 years old. Is this figure realizable? Here’s a breakdown of my current investments: 1. **Mirae Asset Large & Midcap Fund (Direct Growth)** – INR 5,000 monthly - Current value: INR 135,281 2. **Canara Robeco Small Cap Fund (Direct Growth)** – INR 10,000 monthly - Current value: INR 210,164 3. **Quant Small Cap Fund (Direct Plan Growth)** – INR 5,000 monthly - Just started; current value: INR 5,190 4. **ICICI Prudential Balanced Advantage Fund (Growth)** – INR 20,000 monthly - Current value: INR 583,113 5. **HDFC Balanced Advantage Fund (Growth)** – INR 15,000 monthly - Current value: INR 503,604 6. **SBI Balanced Advantage Fund (Regular Growth)** – INR 15,000 monthly - Current value: INR 321,491 7. **Sukanya Samriddhi Yojana (SSY)** – INR 50,000 annually for my 9-year-old daughter - Current value: INR 565,805 (since 2016) 8. **Provident Fund (PF)** – Current balance: INR 10 lakh 9. **Tata AIA Life Insurance Fortune Pro ** – Started last year INR 150,000 to be paid for 5 years till 2027 10. SBI Child Plan Smart Scholar - Completed INR 500,000 Total Investment for 5 Years in 2024. From this year every financial year I plan to invest my working bonus of INR 3 Lacs to INR 5 Lacs every year as a bulk investment and diversify in different funds. I am 46 years old and plan to continue working and investing for another 5 to 6 years due to health reasons. My spouse is 37, and we have two daughters aged 9 and 5. My goal is to accumulate a corpus of at least INR 3 to 5 crores by the time my daughters reach 18 years of age. Based on my current investments, do you think this target is achievable within the given timeframe? I would greatly appreciate any suggestions or adjustments you might recommend to help reach this goal. Thank you for your guidance.
Ans: You’ve put together a well-diversified portfolio with a mix of equity and hybrid funds, Sukanya Samriddhi Yojana (SSY), Provident Fund (PF), and insurance-linked investments. Each of these investments serves a different purpose, and it’s clear that you have a strong focus on building wealth while securing your daughters' future.

Given that you plan to invest a significant portion of your bonus in the coming years, it’s important to assess whether your current strategy will meet your target corpus of Rs 3-5 crores when your daughters turn 18. Let’s evaluate your portfolio in detail.

Assessment of Equity Mutual Funds
Mirae Asset Large & Midcap Fund, Canara Robeco Small Cap Fund, Quant Small Cap Fund: These funds are growth-oriented with potential for substantial returns over the long term. Your monthly SIPs in these funds are well-placed, and their current values indicate a positive trend. However, as small-cap funds tend to be more volatile, it’s important to monitor them regularly and rebalance if necessary.

ICICI Prudential Balanced Advantage Fund, HDFC Balanced Advantage Fund, SBI Balanced Advantage Fund: These funds offer a balanced approach by investing in a mix of equity and debt. They are designed to manage volatility, making them a stable choice for medium-term goals. Your consistent investments in these funds are helping you build a solid foundation for your corpus.

Given that you are contributing significant amounts to Balanced Advantage Funds, this shows a prudent approach to managing risk while aiming for growth. However, it’s crucial to ensure that these funds align with your risk tolerance as you near retirement.

Sukanya Samriddhi Yojana (SSY) for Your Daughter
Sukanya Samriddhi Yojana (SSY): Your annual contribution to SSY for your 9-year-old daughter is a wise choice. This scheme offers guaranteed returns and tax benefits, making it an excellent option for long-term, low-risk investment. With the current value of Rs 5,65,805, you are on track, but it's essential to continue this contribution until maturity to maximize the benefit for your daughter's higher education or marriage expenses.
Provident Fund (PF)
Provident Fund (PF): Your PF balance of Rs 10 lakh is a significant component of your retirement savings. The regular contributions and employer match provide a stable, low-risk return, which is crucial for wealth preservation. This fund will serve as a backbone for your retirement corpus.
Insurance-Linked Investments
Tata AIA Life Insurance Fortune Pro: Insurance-cum-investment products like these generally have lower returns compared to pure investment products like mutual funds. While they provide life cover, the investment returns may not be sufficient to meet your high-growth goals. You might want to evaluate the performance after the lock-in period and consider redirecting future premiums into mutual funds if the returns are unsatisfactory.

SBI Child Plan Smart Scholar: Having completed your investment in this child plan, it's time to assess its performance. If the returns are on the lower side, consider using the maturity proceeds to invest in a high-growth equity fund or balanced fund to further boost your corpus.

Planned Bulk Investments
Future Bulk Investments: Your plan to invest Rs 3-5 lakhs annually as a lump sum from your bonuses is a great strategy. However, it's essential to deploy this lump sum in a staggered manner, like a Systematic Transfer Plan (STP), to mitigate market volatility. You might consider adding these funds to existing high-performing equity funds or explore new opportunities in growth-oriented funds.
Future Growth Potential and Target Realization
Assessing the Achievability of Rs 3-5 Crore Corpus
Your goal of building a corpus of Rs 3-5 crores by the time your daughters turn 18 is ambitious but achievable. However, it will require careful planning and disciplined execution. Here are some key points to consider:

Time Horizon: With a 9-year and a 5-year time horizon, your portfolio should focus on growth-oriented investments in the earlier years, gradually shifting towards more stable, low-risk assets as you near the target date. This will help protect your accumulated wealth from market volatility.

Asset Allocation: Currently, you have a mix of equity and balanced funds. As your daughters approach 18, you might want to shift a portion of your equity investments into safer options like debt funds or fixed deposits to preserve the capital.

Inflation and Taxation: Consider the impact of inflation on your target corpus. What may seem like a large sum today may not have the same purchasing power in the future. Also, be mindful of the tax implications on your investments, particularly on the returns from mutual funds and insurance plans.

Suggestions for Portfolio Adjustments
Enhance Equity Exposure: While you have a good mix of funds, increasing your allocation to high-growth equity funds can help you reach the Rs 5 crore target. Consider redirecting the future premiums of your insurance plans or part of your Balanced Advantage Fund investments into aggressive equity funds.

Surrender Underperforming Insurance Plans: If your Tata AIA Life Insurance and SBI Child Plan do not meet expectations, consider surrendering them after evaluating the surrender value and investing the proceeds in higher-return options.

Regular Reviews and Rebalancing: The market environment and your personal circumstances may change over time. Regular reviews of your portfolio and timely rebalancing will help ensure that your investments remain aligned with your goals.

Avoid Over-Diversification: While diversification is important, too much of it can dilute returns. Focus on a few high-performing funds and avoid spreading your investments too thin.

Risk Management: As you approach the end of your working years, it’s crucial to reduce exposure to high-risk assets. Gradually move a portion of your investments into safer instruments like debt funds, bonds, or even a fixed deposit.

Final Insights
Your dedication to building a secure financial future for your daughters is commendable. With consistent and strategic investments, your target of Rs 3-5 crores is within reach. The key will be maintaining a disciplined approach, regularly reviewing your portfolio, and making necessary adjustments based on market conditions and life changes.

Remember to keep an eye on both growth and safety as you transition into retirement. By doing so, you can confidently achieve your financial goals and provide your daughters with a strong financial foundation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 08, 2024

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**Subject:** Request for Investment Review and Future Corpus Estimation Dear Mr.Vivek, I hope this message finds you well. I wanted to review my current investment portfolio and seek your expert advice regarding the future growth potential, as I aim to build a corpus of at least INR 3 - 5 crores by the time my daughters turn 18 years old. Is this figure realizable? Here’s a breakdown of my current investments: 1. **Mirae Asset Large & Midcap Fund (Direct Growth)** – INR 5,000 monthly - Current value: INR 135,281 2. **Canara Robeco Small Cap Fund (Direct Growth)** – INR 10,000 monthly - Current value: INR 210,164 3. **Quant Small Cap Fund (Direct Plan Growth)** – INR 5,000 monthly - Just started; current value: INR 5,190 4. **ICICI Prudential Balanced Advantage Fund (Growth)** – INR 20,000 monthly - Current value: INR 583,113 5. **HDFC Balanced Advantage Fund (Growth)** – INR 15,000 monthly - Current value: INR 503,604 6. **SBI Balanced Advantage Fund (Regular Growth)** – INR 15,000 monthly - Current value: INR 321,491 7. **Sukanya Samriddhi Yojana (SSY)** – INR 50,000 annually for my 9-year-old daughter - Current value: INR 565,805 (since 2016) 8. **Provident Fund (PF)** – Current balance: INR 10 lakh 9. **Tata AIA Life Insurance Fortune Pro ** – Started last year INR 150,000 to be paid for 5 years till 2027 10. SBI Child Plan Smart Scholar - Completed INR 500,000 Total Investment for 5 Years in 2024. From this year every financial year I plan to invest my working bonus of INR 3 Lacs to INR 5 Lacs every year as a bulk investment and diversify in different funds. I am 46 years old and plan to continue working and investing for another 5 to 6 years due to health reasons. My spouse is 37, and we have two daughters aged 9 and 5. My goal is to accumulate a corpus of at least INR 3 to 5 crores by the time my daughters reach 18 years of age. Based on my current investments, do you think this target is achievable within the given timeframe? I would greatly appreciate any suggestions or adjustments you might recommend to help reach this goal. Thank you for your guidance.
Ans: Yes your target is achievable in the given time frame.(13% return assumed) I am sure you have planned for some regular income after you stop working (~6 years from now) to meet the regular expenses. Plz. Make sure you have good family floater health insurance coverage apart from the employer's group health policy if any. Insurers typically insist 3-4 years of continuous coverage after which pre existing illnesses are covered. Consider investing in SSY in the name of second daughter, if possible. As you approach your target move corpus away from equity MFs into liquid or ultra short term debt funds.

*Investments in mutual funds are subjected to market risks. Please read all scheme related documents carefully before investing

You may follow us on X at @mars_invest for updates

Happy Investing!!

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

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

Money
**Subject:** Request for Investment Review and Future Corpus Estimation Dear Ms.Jinal, I hope this message finds you well. I wanted to review my current investment portfolio and seek your expert advice regarding the future growth potential, as I aim to build a corpus of at least INR 3 - 5 crores by the time my daughters turn 18 years old. Is this figure realizable? Here’s a breakdown of my current investments: 1. **Mirae Asset Large & Midcap Fund (Direct Growth)** – INR 5,000 monthly - Current value: INR 135,281 2. **Canara Robeco Small Cap Fund (Direct Growth)** – INR 10,000 monthly - Current value: INR 210,164 3. **Quant Small Cap Fund (Direct Plan Growth)** – INR 5,000 monthly - Just started; current value: INR 5,190 4. **ICICI Prudential Balanced Advantage Fund (Growth)** – INR 20,000 monthly - Current value: INR 583,113 5. **HDFC Balanced Advantage Fund (Growth)** – INR 15,000 monthly - Current value: INR 503,604 6. **SBI Balanced Advantage Fund (Regular Growth)** – INR 15,000 monthly - Current value: INR 321,491 7. **Sukanya Samriddhi Yojana (SSY)** – INR 50,000 annually for my 9-year-old daughter - Current value: INR 565,805 (since 2016) 8. **Provident Fund (PF)** – Current balance: INR 10 lakh 9. **Tata AIA Life Insurance Fortune Pro ** – Started last year INR 150,000 to be paid for 5 years till 2027 10. SBI Child Plan Smart Scholar - Completed INR 500,000 Total Investment for 5 Years in 2024. From this year every financial year I plan to invest my working bonus of INR 3 Lacs to INR 5 Lacs every year as a bulk investment and diversify in different funds. I am 46 years old and plan to continue working and investing for another 5 to 6 years due to health reasons. My spouse is 37, and we have two daughters aged 9 and 5. My goal is to accumulate a corpus of at least INR 3 to 5 crores by the time my daughters reach 18 years of age. Based on my current investments, do you think this target is achievable within the given timeframe? I would greatly appreciate any suggestions or adjustments you might recommend to help reach this goal. Thank you for your guidance.
Ans: Your goal of building a corpus of Rs 3 to 5 crores for your daughters by the time they reach 18 years of age is realistic, but it needs a detailed evaluation. Let's assess your existing portfolio and provide suggestions to help you reach your target.

You are currently 46, and your elder daughter is 9, giving you around 9 years to achieve your financial goal. Your current investments are diversified, but we’ll focus on optimising them for long-term growth and stability.

Current Investment Portfolio Breakdown
You have a balanced mix of equity mutual funds, debt-oriented instruments, and insurance. Each type of investment serves a purpose, but we’ll examine them to see if they align well with your goals.

Balanced Advantage Funds:

You are investing Rs 50,000 monthly into three balanced advantage funds. These funds are designed to switch between equity and debt, providing a mix of safety and growth. While these funds have performed decently in volatile markets, they may not offer the aggressive growth potential needed to meet your target of Rs 3 to 5 crores in a relatively short timeframe.

Consider reducing the allocation to balanced advantage funds. These funds offer stability but may not provide the aggressive growth you need at this stage of your financial journey.

Instead, consider moving a part of this allocation into funds with higher equity exposure, such as large-cap, multi-cap, or small-cap funds. These have the potential to generate higher returns over a 9-year horizon.

Small Cap and Mid Cap Funds:

You have a strong allocation to small-cap funds, which is a good strategy for long-term growth.

However, small-cap funds are known for their volatility. You should maintain a long-term perspective and not get disheartened by short-term fluctuations.

With a combined monthly SIP of Rs 15,000 in small-cap funds, you can expect higher growth if the market performs well over the next decade. Stick to this strategy but periodically review the performance.

Sukanya Samriddhi Yojana (SSY):

You are consistently investing Rs 50,000 annually in SSY for your 9-year-old daughter. This is a fantastic step for her future education and marriage needs, as SSY offers a high fixed interest rate with tax benefits.

Continue this investment, as it provides a solid foundation for your daughter’s future. The guaranteed returns, along with the tax-free nature, make it an excellent low-risk investment.

However, SSY alone won’t suffice for your Rs 3-5 crore target. Hence, relying on equity mutual funds will be essential for wealth creation.

Provident Fund (PF):

You have Rs 10 lakh invested in PF, which will grow at a stable, assured rate.

PF is a low-risk investment, but its growth potential is limited compared to equities. Since you are already contributing a significant amount here, you don’t need to increase this allocation.

The PF will add to your retirement security but won't contribute significantly to your Rs 3-5 crore target due to the conservative interest rate.

Tata AIA Life Insurance Fortune Pro and SBI Child Plan:

Insurance policies like Tata AIA Life Insurance Fortune Pro and SBI Child Plan serve a dual purpose—insurance and investment. However, these plans typically offer lower returns compared to mutual funds.

Since you have already paid a substantial amount into the SBI Child Plan and Tata AIA, it may be worthwhile to keep these policies until maturity. However, any additional bonus or lump-sum investments should be diverted into equity mutual funds rather than insurance-linked plans.

These investment-cum-insurance policies tend to have high fees and lower returns. If you’re considering any future insurance-linked investments, you should reconsider them in favour of pure term insurance and higher-yielding mutual funds.

Adjustments for Future Growth
Now that we’ve evaluated your existing investments, let’s discuss the adjustments that can help you reach your goal.

Increase Equity Exposure:

Equity mutual funds, particularly large-cap, multi-cap, and small-cap funds, have the potential to generate higher returns than balanced advantage funds or insurance policies.

You should increase your SIP contributions to pure equity funds. While balanced funds offer stability, pure equity funds provide better growth potential, which is necessary to reach Rs 3 to 5 crores in 9 years.

Allocate more to large-cap or multi-cap funds. These funds invest in stable, well-established companies, providing growth potential with comparatively lower risk than small-cap funds.

Diversify Your Bulk Investments:

You plan to invest Rs 3-5 lakh from your working bonus each year. This is an excellent strategy to accelerate your wealth-building process.

Consider investing your bonus in high-growth funds like mid-cap or flexi-cap funds. These funds allow the fund manager to invest across different market caps, offering the potential for better returns.

You may also consider investing a portion of the bonus in international mutual funds, which can provide diversification and protect against domestic market volatility.

Balanced Asset Allocation:

While increasing equity exposure is essential, you should also maintain a balance in your asset allocation. Diversification between equity, debt, and other instruments will help manage risk.

You have a good mix of safe investments like SSY and PF. These will provide the necessary safety net for your portfolio.

Make sure to periodically review your asset allocation based on your risk tolerance, financial goals, and market conditions.

Reconsider Insurance-Linked Investments:

Insurance-linked investments like Tata AIA Life Insurance Fortune Pro are not ideal for wealth creation. They offer lower returns due to high fees and a limited range of investment options.

Consider completing the premium payments on existing policies but avoid adding more money to such plans. For future lump sum or bonus investments, it’s better to focus on mutual funds or other growth-oriented products.
Maintain Term Insurance:

If your life insurance policies do not include adequate term insurance coverage, you should consider purchasing a pure term plan. Term insurance offers higher coverage at a lower premium compared to investment-linked insurance plans.

A pure term plan will provide financial security for your family, without eating into your investment returns.
Tax Efficiency:

Ensure that your portfolio is tax-efficient. Investments like SSY, PF, and certain debt funds offer tax benefits, but the taxation on mutual funds, especially long-term capital gains (LTCG), can eat into your returns.

Choose funds that are efficient in terms of post-tax returns. This will help you maximize your wealth accumulation.
Review Your Portfolio Regularly:

It’s important to periodically review your portfolio and adjust the investment strategy based on changing market conditions and financial goals.

Conduct an annual review of your portfolio to ensure that your funds are performing as expected. Switch funds if they are underperforming consistently.
Final Insights
You are on the right track with your investments, and the target of Rs 3 to 5 crores is achievable within the given timeframe. However, some fine-tuning in your asset allocation and fund choices is needed to meet this goal.

By increasing your exposure to high-growth equity mutual funds, ensuring diversification, and maintaining a disciplined investment approach, you can significantly enhance your portfolio’s growth potential. Regular reviews will help keep your portfolio aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 13, 2024

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**Subject:** Request for Investment Review and Future Corpus Estimation Dear Mr.Sunil, I hope this message finds you well. I wanted to review my current investment portfolio and seek your expert advice regarding the future growth potential, as I aim to build a corpus of at least INR 3 - 5 crores by the time my daughters turn 18 years old. Is this figure realizable? Here’s a breakdown of my current investments: 1. **Mirae Asset Large & Midcap Fund (Direct Growth)** – INR 5,000 monthly - Current value: INR 135,281 2. **Canara Robeco Small Cap Fund (Direct Growth)** – INR 10,000 monthly - Current value: INR 210,164 3. **Quant Small Cap Fund (Direct Plan Growth)** – INR 5,000 monthly - Just started; current value: INR 5,190 4. **ICICI Prudential Balanced Advantage Fund (Growth)** – INR 20,000 monthly - Current value: INR 583,113 5. **HDFC Balanced Advantage Fund (Growth)** – INR 15,000 monthly - Current value: INR 503,604 6. **SBI Balanced Advantage Fund (Regular Growth)** – INR 15,000 monthly - Current value: INR 321,491 7. **Sukanya Samriddhi Yojana (SSY)** – INR 50,000 annually for my 9-year-old daughter - Current value: INR 565,805 (since 2016) 8. **Provident Fund (PF)** – Current balance: INR 10 lakh 9. **Tata AIA Life Insurance Fortune Pro ** – Started last year INR 150,000 to be paid for 5 years till 2027 10. SBI Child Plan Smart Scholar - Completed INR 500,000 Total Investment for 5 Years in 2024. From this year every financial year I plan to invest my working bonus of INR 3 Lacs to INR 5 Lacs every year as a bulk investment and diversify in different funds. I am 46 years old and plan to continue working and investing for another 5 to 6 years due to health reasons. My spouse is 37, and we have two daughters aged 9 and 5. My goal is to accumulate a corpus of at least INR 3 to 5 crores by the time my daughters reach 18 years of age. Based on my current investments, do you think this target is achievable within the given timeframe? I would greatly appreciate any suggestions or adjustments you might recommend to help reach this goal. Thank you for your guidance.
Ans: Yes your target is achievable in the given time frame.(13% conservative return assumed). I am sure you have planned for some regular income after you stop working(~6 years from now) to meet the regular expenses. Please make sure you have good family floater health insurance apart from employer's group health policy if any. Insurers typically insist 3-4 years of continuous coverage after which pre existing illnesses are covered. Consider investing in SSY in the name of second daughter if possible. As you approach your target move corpus away from equity MFs into liquid or ultra short duration debt funds.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

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Nayagam P

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Career Counsellor - Answered on Jul 18, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
I had commerce and maths in 12and now Want to do graduation in business analytics . Which college should I prefer in Jaipur as well as pan india. Pls Give suggestions for *both* Don't want to do ca cfa Cs cma and other such courses. College should have various societies, cultural activities like debates and modern age competitions with strong academic excellency and placement records. Stream :commerce with maths Should be affordable (even by availability scholarship family annual income 12 L) Like Krea university offering scholarship for the same income grp . 12% =86 No entrance exam given Suggest college which is accepting admissions right now also.
Ans: With a commerce and maths background and no entrance exam, you can gain admission immediately into strong, affordable BBA/BBM (Business Analytics) programs that combine academic rigor, active societies, cultural events, and proven placement support, with scholarship options for a family income of ?12 LPA.

The following ten institutions accept 12th commerce + maths applicants now, offer vibrant student life (debate clubs, data challenges, cultural fests), and provide need-based or merit scholarships similar to Krea’s model:

ICFAI University, Jaipur – BBA (Business Analytics) with UGC approval, societies for finance, quizzing, tech fests, campus recruitment rates around 80% and scholarships up to 50% for incomes ≤ ?12 LPA.

IBS (ICFAI) Jaipur – BBA (Hons) Business Analytics accredited by IoA, active analytics and entrepreneurship clubs, placement support cell, family-income scholarships.

JECRC University, Jaipur – BBA (Hons) Business Analytics endorsed by Institute of Analytics, robust cultural societies, data-hackathons, ~75% campus placements, fee waivers for eligible candidates.

Manipal University Jaipur – BBA (Business Analytics) with NAAC A+ ranking, vibrant student council, intercollegiate festivals, 85% placement assistance, need-based financial aid.

Vivekananda Global University, Jaipur – BBA (Business Analytics) in a UGC-approved private university, multiple entrepreneurship and analytics clubs, ~70% placement, scholarships for middle-income families.

JAIN University, Bangalore – BBA Business Analytics & Intelligence, industry-aligned labs, cultural and hackathon events, ~90% placement in analytics roles, merit-cum-need scholarships.

Christ University, Bangalore – BBA Strategy & Business Analytics (Hons) with research options, national debating society, business clubs, ~88% placement, scholarships up to 50% for ?12 LPA income.

IIBS, Bangalore – BBA (Business Analytics), global analytics certifications, active campus forums, placement cell with 80% success, merit scholarships.

Amity University, Noida – BBA Data Analytics, techno-cultural fests, business societies, ~85% placement, need-based aid for ?12 LPA bracket.

Woxsen University, Hyderabad – BBA (Business Analytics), collaborative start-up incubator, cultural council, ~80% placement, substantial scholarships for middle-income families.

Recommendation: For the strongest blend of analytics focus, campus life, and scholarships, prioritize ICFAI University Jaipur and IBS Jaipur for their immediate admission cycles and generous aid. Next consider JAIN University and Christ University for pan-India exposure and vibrant societies, followed by JECRC University for its analytics accreditation and Jaipur-based convenience. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 18, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
Hi sir my son is in 10th now he opts for iit and it woukd be challenging so i jave suggested him to go with bits and iiit too. In this case what are exams he has to go through At the same time he has taken kannada as 2nd language in 10th and wants to opt sanskrit in 11th and 12th for scoring purpose will be a wise decision as we have a option to answer the paper in english to please advise
Ans: For a 10th grade student aspiring to join IIT, BITS, and IIITs, understanding the complete examination roadmap and making strategic language choices is crucial for maximizing overall academic performance. Regarding language selection, switching from Kannada to Sanskrit in Classes 11 and 12 offers compelling advantages for scoring purposes. Sanskrit consistently demonstrates superior scoring potential compared to regional languages, with 2,758 students achieving perfect 100 marks in Sanskrit during recent CBSE examinations, significantly higher than other languages. Educational experts confirm Sanskrit's reputation as a "scoring and simple subject" with compact syllabi, straightforward question patterns, and high success rates, as evidenced by Karnataka students historically choosing Sanskrit for easy scoring compared to Kannada, English, or Hindi. The Sanskrit examination format includes multiple-choice questions with given options, fill-in-the-blank grammatical forms, and structured essay questions—all conducive to higher marks with proper preparation. Additionally, Sanskrit papers can be answered in English in many examination systems, eliminating language barriers while maintaining the scoring advantages. The strategic benefit extends beyond board examinations, as Sanskrit knowledge proves valuable for competitive examinations like UPSC, where it's considered among the most scoring optional subjects.

Recommendation: Your son should proceed with JEE Main and Advanced preparation while registering for BITSAT and researching IIIT-specific entrance examinations like UGEE. Switching to Sanskrit in Classes 11 and 12 is strategically wise given its consistent high-scoring potential, simplified examination patterns, and compatibility with English-medium answering, ultimately supporting his overall academic percentage crucial for engineering admission success. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 18, 2025

Career
I got Electronic and communication in advanced communication technology in NMAMIT, nitte Or through KCET Information science branch in Sahyadri engineering college in mangalore Which is better?
Ans: NMAMIT's ECE program with Advanced Communication Technology specialization leverages the institution's strong reputation as a constituent college of Nitte Deemed to be University (NAAC A+ accredited) and NIRF ranking of 138 in Engineering 2021. The ECE department has recorded placement rates around 50-60% over the past three years, with recruiters including Cadence, Bosch, Accenture, and Infosys, offering average packages of 4.5-5 LPA and highest packages reaching 11-18 LPA. The specialized Advanced Communication Technology focus provides exposure to cutting-edge areas including wireless communication, VLSI design, and telecommunications, supported by modern labs and industry partnerships spanning 125 acres of serene campus with over 230 companies visiting annually. Faculty comprises predominantly PhD holders from premier institutions, ensuring rigorous academic standards and research opportunities in advanced communication systems.

Sahyadri College Engineering's Information Science program demonstrates strong placement consistency with 89% of registered students securing offers in recent years, supported by NAAC A accreditation and NBA approval for five engineering programs. The Information Science department recorded 54 registered students with 48 placements (89% rate) and attracts major recruiters including Google, Microsoft, Amazon, TCS, and Infosys, with the college reporting highest packages of 40-43 LPA and average packages of 3.5-4 LPA. The institution maintains strong industry connections with over 250 companies visiting annually, providing internship opportunities ranging from ?15,000 to ?60,000 per month and comprehensive placement training from the first year onwards. Infrastructure includes advanced computing labs, project-based learning initiatives, and active entrepreneurship cells fostering innovation and skill development in contemporary technology domains.

Recommendation: Choose NMAMIT ECE with Advanced Communication Technology for its established academic reputation, specialized focus on cutting-edge communication technologies, and strong core engineering foundation with PSU recruitment opportunities. Opt for Sahyadri College Information Science if you seek higher placement consistency, broader software industry exposure, and contemporary computing specialization with strong tech-sector recruitment from leading companies like Google and Microsoft. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 18, 2025

Asked by Anonymous - Jul 18, 2025Hindi
Career
My son got NIT Calicut Computer Science in Josaa 2025 counselling. His JEE Mains CRL was 4241. He may get NIT Surathkal ECE in CSAB counselling. We are from General category. Which option will be better for him, NIT Calicut CSE or NIT Surathkal ECE, in terms of placements and packages?
Ans: NIT Calicut's Computer Science Engineering program demonstrates exceptional placement consistency with a 96.77% placement rate in 2024, maintaining performance above 95% for the past three years. The CSE department recorded an impressive average package of INR 19.37 LPA in 2024, supported by 155 registered students securing 150 offers from leading technology companies including Google, Microsoft, Amazon, and Oracle. The institute maintains strong academic credentials with NAAC A++ accreditation and NIRF Engineering ranking of 25th position in 2024, alongside specialized recognition as the only NIT to achieve 8th rank in NIRF Innovation category in 2023. Faculty expertise comprises predominantly PhD holders from premier institutions, providing rigorous computer science education through modern labs, robust research facilities, and active industry partnerships with over 208 companies participating in recent placement drives.

NIT Surathkal's Electronics and Communication Engineering program achieved a 72.66% placement rate in 2024 with an average package of INR 20.89 LPA, demonstrating strong performance in both core electronics and software domains. The institute holds superior institutional ranking at 17th position in NIRF Engineering 2024 and 46th in overall rankings, reflecting its established academic reputation since 1960. NITK Surathkal benefits from exceptional research infrastructure including a dedicated Central Research Facility worth INR 80 crores featuring 45 high-end equipment sets, making it the only NIT among 31 chosen by HEFA for such advanced facilities. The ECE department leverages strong industry connections with companies like Qualcomm, Intel, and Texas Instruments, while maintaining access to cutting-edge VLSI, communication, and instrumentation laboratories supported by experienced faculty and comprehensive alumni networks spanning 40,000+ professionals globally.

Recommendation: NIT Calicut CSE emerges as the superior choice for placement consistency, specialized computer science focus, and technology sector opportunities, offering 96.77% placement rates with strong industry engagement. However, NIT Surathkal ECE provides broader engineering exposure, superior institutional ranking, and exceptional research infrastructure, making it preferable for students seeking comprehensive electronics expertise with flexibility across both core and software careers. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 18, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
SIR, COEP ELECTRICAL OR ECE)IOT) at IIIT NAGPUR
Ans: IIIT Nagpur ECE(IoT) represents a modern, specialized program established in 2016, declared as an Institute of National Importance under the PPP scheme. The program holds NBA accreditation for ECE streams and benefits from partnerships with the Ministry of Education, Government of Maharashtra, and TCS Mumbai. With an 85% placement rate for ECE students in 2024 and an average package of 13.11 LPA, the program features contemporary infrastructure including AC-enabled classrooms, modern labs, and expanding facilities through a ?75 crore Phase II development. The ECE(IoT) curriculum emphasizes practical IoT applications, ESP-32 systems, and emerging technologies like wireless communication and sensor integration, taught by faculty from prestigious institutions including NITs and IITs.

Recommendation: COEP Electrical Engineering stands out for its established academic excellence, higher placement consistency at 94.37%, prestigious alumni network including Bharat Ratna Sir M. Visvesvaraya, and proven industry partnerships spanning core electrical sectors. While IIIT Nagpur ECE(IoT) offers specialization in emerging technologies and competitive packages, COEP's legacy, comprehensive electrical engineering foundation, and superior placement rates make it the preferred choice for long-term career stability and growth in electrical engineering domains. All the BEST for a Prosperous Future!

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