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Samraat

Samraat Jadhav  |2387 Answers  |Ask -

Stock Market Expert - Answered on Jan 31, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Asked by Anonymous - Sep 03, 2023Hindi
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What's going to be future of walchanagar industry

Ans: Growth in Net Profit with increasing Profit Margin (QoQ)
Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
Company reducing Debt
Annual Net Profits improving for last 2 years
Looks good for long term

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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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What is the future of manufacturing industry in India in coming years
Ans: The Indian government has launched various initiatives such as "Make in India," "Atmanirbhar Bharat," and the Production Linked Incentive (PLI) scheme to boost domestic manufacturing, attract foreign investment, and promote the production of goods locally. These initiatives aim to enhance the competitiveness of Indian manufacturing on a global scale; hence, the future of the manufacturing industry in India appears promising, with several factors contributing to its growth potential. Ongoing investments in infrastructure development, including the construction of industrial corridors, logistics parks, and smart manufacturing hubs, are expected to improve connectivity, reduce logistics costs, and enhance the ease of doing business for manufacturers. The increasing adoption of advanced technologies such as automation, robotics, artificial intelligence (AI), and the Internet of Things (IoT) is driving efficiency, productivity, and innovation in the manufacturing sector. This technological transformation is helping Indian manufacturers compete more effectively in the global market. The Indian government has identified several key sectors, such as electronics, automotive, pharmaceuticals, aerospace, and renewable energy, for targeted growth and investment. These sectors offer significant potential for value addition, job creation, and export growth in the manufacturing industry. India's large and growing population, expanding middle class, and rising disposable incomes are driving domestic demand for manufactured goods across various sectors. Meeting this demand presents opportunities for both domestic and foreign manufacturers operating in India. The COVID-19 pandemic highlighted the risks associated with over-reliance on a few countries for supply chain operations. Many companies are now looking to diversify their supply chains and explore alternative manufacturing destinations, such as India. This presents an opportunity for India to attract investment and become an integral part of global supply chains. 

However, to fully realize its potential, the Indian manufacturing industry must address certain challenges, including infrastructure bottlenecks, regulatory complexities, skill shortages, and the need for greater ease of doing business. Additionally, there is a growing emphasis on sustainability and environmental responsibility, which manufacturers need to integrate into their operations to remain competitive in the long term.

Overall, with the right policy support, investments in infrastructure and technology, and concerted efforts to address challenges, the manufacturing industry in India is poised for significant growth in the coming years.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9778 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 2025

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I am a West Bengal State Government Employee due for retirement in August 2026. I am a divorcee who lives with an Adult Son who is not financially dependent on me in a self purchased house(Cash) and also own a flat (Cash) By the time of retirement I will have 73 lacs in GPF, 31 lacs in PPF, 20 lacs in Gratuity, 11.65 lacs in Leave encashment, 20 lacs from Pension Commutation and 6.5 lacs as maturity proceeds from Cooperative Thrift Fund. Since I will draw around 38000 OPS Pension with DA thereafter per month. Will it be beneficial to invest 30 lacs in SCSS, 18 lacs in MIS and 20 Lacs in FRSBs for a cumulative monthly interest of 45000 rupees. My monthly income will be 83000 then. I plan to actively continue subscription to my PPF post retirement and need advice on what to do with the remaining 63 lacs of my corpus??? My son advises me in investing in Kisan Vikas Patras and 5 Year PO Time Deposits as these are largely liquid. PS- I have two health insurances, one the West Bengal Health Scheme Cashless and the National Insurance Mediclaim Policy for son and me with 17 lacs sum assured.
Ans: Based on your profile as a West Bengal Government Employee retiring in August 2026, and the impressive financial preparedness you've shown, here is a detailed, 360-degree analysis of your financial situation and investment choices, written in a simple and structured format.

Let’s go step by step to help you get better clarity.

? Current Financial Picture and Retirement Readiness

– You are already well-prepared for retirement. That deserves appreciation.
– You own your house. That removes rental liabilities.
– You also have another flat, fully paid for. This adds to your asset base.
– Your son is not dependent. That reduces your future financial obligations.
– You are sitting on a strong retirement corpus of Rs. 1.62 crores.
– Your post-retirement monthly pension is expected to be Rs. 38,000 with DA.
– Proposed income from safe investment options is Rs. 45,000 per month.
– That means, total monthly income will be Rs. 83,000, which is quite healthy.
– Your current and expected lifestyle appears manageable within this budget.
– You have two health covers. That gives enough financial protection from medical emergencies.

You have set a very solid financial foundation. Now, it’s time to structure the investment allocation with care.

? Evaluating the Proposed Investment Mix

You are considering the below investment plan:

– Rs. 30 lakhs in a senior citizen savings option
– Rs. 18 lakhs in monthly interest yielding postal scheme
– Rs. 20 lakhs in government floating rate savings bonds

These offer monthly interest income around Rs. 45,000.

This plan shows great prudence and awareness. But, it’s not complete.
It ensures safety and regular cashflow. But it lacks future growth.
Your pension and these options will help for regular needs.
But what about inflation 10–15 years down the line?
That’s where your portfolio must include growth assets.

? Safe Income Assets Are Essential – But Not Sufficient

– Senior savings and monthly income options offer steady interest.
– Floating rate bonds protect somewhat against rising interest rates.
– These are great for predictable monthly inflow.

But there is one issue here:
– Interest income is taxable every year.
– Real return post tax and inflation may drop below 2% in future.
– They help with stability. But they don’t create wealth.

So, this plan is strong for the short-term.
But to stay financially secure for the next 20–25 years,
you need to add some long-term growth elements.

? Liquid and Flexible Options Your Son Suggested

You mentioned your son recommended:

– Kisan Vikas Patras
– 5-Year Post Office Term Deposits

These have some benefits:
– Safe and guaranteed returns
– Slightly more liquid than other long-term fixed income options
– No market-linked risk

But there are drawbacks too:
– Both are taxable every year
– Returns may not beat inflation in long run
– Fixed interest means less flexibility during rate changes

So, while your son’s suggestion comes from care,
these products should only take a partial share of your corpus.
You can allocate around Rs. 10–15 lakhs here, not more.

? The Remaining Rs. 63 Lakhs – What to Do?

You are asking how to deploy the remaining Rs. 63 lakhs.

The answer depends on three important things:

– Do you have future large expenses planned?
– Are you willing to keep some money locked for 5 years+?
– Do you want your total income to grow every year?

Let us approach this wisely.

Break your Rs. 63 lakhs into 3 buckets:

1. Emergency & Short-term Reserve – Rs. 8 to 10 lakhs

– Keep this in a liquid mutual fund with low risk
– You can withdraw anytime within 24 hours
– Helps during medical needs or family emergencies
– This avoids breaking FDs or other long-term products

2. Medium-term Stability – Rs. 18 to 20 lakhs

– You can consider short duration mutual funds
– These are ideal for 3–5 year horizon
– They offer better post-tax returns than bank FDs
– Risk is moderate and suited for your age

You can invest in regular plans through a Mutual Fund Distributor with CFP qualification.
Avoid direct plans. These lack advice and long-term discipline.
Also, you may miss key portfolio reviews without a professional’s help.
Regular plans include embedded costs, but the value of guidance is much higher.

3. Long-term Growth – Rs. 33 to 35 lakhs

This is very important. Don’t ignore this section.
You will need to beat inflation for next 20 years.
This requires growth-oriented mutual funds.

– Choose hybrid mutual funds or balanced advantage mutual funds
– These reduce market risk by shifting between equity and debt
– Returns are better than fixed income in the long run
– You can withdraw anytime after one year with lower tax impact

You may go for monthly withdrawal plans if needed after 5 years.
Also, you can stay invested and let the funds grow with compounding.

Never invest in index funds.
They only track the market.
They don’t protect downside or volatility.
Also, they do not give alpha returns over time.
Actively managed funds do better in India.
Because fund managers can change portfolio during economic shifts.

Also, do not invest directly.
You will miss portfolio balancing, risk reviews, and exit timing.
Use a regular plan through a Mutual Fund Distributor with CFP credential.

? You Can Continue PPF Contributions Post Retirement

This is a good strategy. PPF gives tax-free interest.
Continue depositing Rs. 1.5 lakh per year.
You already have Rs. 31 lakhs in PPF.
This will become a strong tax-free legacy for your son.
You can extend the account in 5-year blocks after retirement.
This keeps money safe and growing slowly.

? Pension and Inflation Consideration

You will get Rs. 38,000 per month from OPS.
With current DA trends, this may increase slowly.
But inflation may outpace pension growth in 10–15 years.
So, income from investments must increase over time.
That’s why long-term mutual fund allocation is very important.

? No Need to Look at Annuities or Real Estate

Avoid locking large amounts in annuity plans.
They give low returns and no flexibility.
Also, do not buy more property now.
You already have two houses.
Real estate has low liquidity and high maintenance post-retirement.

? No Mention of LIC, ULIPs, or Endowment Policies

You haven’t mentioned having LIC policies or ULIPs.
If you do, check their surrender value.
Mostly, these give poor returns after adjusting for inflation.
You can surrender and reinvest the maturity value in mutual funds.
Only do this if lock-in period is over and charges are low.

? Final Insights

– You are financially well-prepared for retirement.
– Continue the plan of earning Rs. 45,000 monthly through fixed safe instruments.
– But allocate Rs. 30–35 lakhs to long-term mutual funds.
– This will grow your money for next 20 years.
– Have Rs. 8–10 lakhs in liquid funds for emergencies.
– Use regular mutual fund plans through an experienced CFP-led Mutual Fund Distributor.
– Avoid direct, annuity, and index-based options.
– Keep contributing to PPF and track expenses carefully post-retirement.
– With this balanced approach, you can enjoy peace and security.

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

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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