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Samraat Jadhav  |2136 Answers  |Ask -

Stock Market Expert - Answered on Jul 10, 2023

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
Omprakash Question by Omprakash on Jul 08, 2023Hindi
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Whether is it time to accumulate more shares in voltas, please suggest, i have 12 shares @ 810 , presently loss rs 610

Ans: no

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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Vivek

Vivek Shah  | Answer  |Ask -

Financial Planner - Answered on Jun 19, 2023

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I have 40 shares of Voltas@919/- now it is 780/-should I hold or exit?
Ans: Voltas Limited was incorporated on 6th September, 1954 under TATA Group. The Company is jointly promoted by Switzerland's Volkart Brothers and India's Tata Sons Pvt Ltd. It has established itself as the undeniable leader in Cooling Products, and No. 1 Room Air Conditioner brand, in India. It is also a project specialist and provider of engineering solutions. Its wide range of offerings in the Unitary Product segment includes Room Air Conditioners, Air Coolers, Water Dispensers, Water Coolers, Commercial Refrigeration and Commercial Air-conditioning products. It is a provider of Engineering Solutions to diversified range of industries in areas of Heating, Ventilation and Air Conditioning, Refrigeration, Electro-mechanical projects, Electrification, Textile Machinery, Mining and Construction equipment, Water Management & Treatment, Cold Chain solutions, and Indoor Air Quality Management.

Voltas' operations have been organized into three independent business-specific clusters viz. Electro-Mechanical Projects & Services, Engineering Products & Services and Unitary Cooling Products. It has manufacturing units located at Pantnagar, Uttarakhand and Waghodia, Gujarat. It has presence at eight major International Locations: Dubai, Abu Dhabi, Qatar, Sultanate of Oman, Kingdom of Saudi Arabia, Mozambique, Bahrain and Republic of Singapore.

For the manufacture of machine tools, the company promoted Scottish Indian Machine Tools Ltd during the year 1963 in collaboration with Scottish Machine Tool Corporation of Glasgow. During the year 1964, the company made a collaboration agreement with Eaton Yale and Towns, U.S.A., for the manufacture of Yale forklift trucks. Also in the same year, Voltas had joined the Mine Safety Appliances Co., U.S.A., and Associated Battery Makers (Eastern) Ltd., Calcutta in the promotion of Mine Safety Appliances Ltd., Calcutta, a joint venture for the manufacture of miners' electric safety cap lamps and other types of safety and protective equipment, appliances, detection and measuring devices. A new division, the Agro-Industrial Products Division was added in the year 1966. With effect from 1st July of the year 1979, Tata-Merlin & Gerin Ltd (TMG) and the National Electrical Industries Ltd (NEI) were amalgamated with the company. Voltas had entered into an agreement with May & Christe of West Germany in the year 1982 for the manufacture of dry type transformers of cast-resin design. The machine tool division of the company made an agreement with Fanuc of Japan in the year 1988 for the technical collaboration to produce CNC drilling centres.

With effect from 1st March of the year 1989, Volrho Ltd was amalgamated with the company as per the order of BIFR. The machine tools division of the company had introduced Fanuc CNC drilling centres in the period of 1990. During the year 1991, the appliances business division of the company had launched the ductable split air-conditioner, specifically needed for shops, showrooms and general office areas. Also in the same year, an agreement was signed for updating technology and for the manufacture of new models of P&H hydraulic cranes. During the year 1992, the company restructured its operations into product group I comprising refrigerators, pharmaceuticals and consumer products and beverages while product group I (A) include textile machinery. Product group II consisted of machine tools, materials handling facility, industrial machinery, air-conditioning pumps and projects. Group III comprised of chemicals plant, chemicals division and agro-industrial products. The cooling appliances business of the company had launched four new products in the year 1993 viz., water coolers filled with purifiers ductable and slim-line 3 tonne air-conditioners, ceiling mounted split in 1.5 and 3 tonne capacities and 2 tonne room split units. Also in the same year, the pharmaceutical and consumer products division was closed and had also withdrawn from the beverages business. In the year 1994, Voltas had introduced 250 L refrigerator in the market under the home appliances division.

Voltas bagged Good Corporate Citizen Award in the year 1995 and also the company had introduced `Soft Look' models of refrigerator in 165 L. & 200 L segments. Pumps and projected business division of the company had successfully developed, manufactured and commissioned the largest sizes of horizontal and vertical pumps in its range during the year of 1996. Voltas had entered into a lease rental agreement with SIPL for lease of factory premises of WNC in the year 1997 for a period of 18 months for a total consideration of Rs 10.250 million and also in the same year, the company had finalised yet another contract as original equipment manufacturer (OEM) with one of the white goods majors, LG Electronics, to manufacture and supply direct cool refrigerators. The Company had commissioned Dadra plant in the year 1998 and in end of the same year 1998, Voltas won two of the world's biggest orders in the mining sector from Coal India Ltd (CIL), such as Rs 9180 million 2 shovels (P&H) and 160 dump trucks (Unit Rig).

During the year 2000, L. G. Electronics India and Voltas had entered into a tie-up for the 12,00,000 direct-cool refrigerators from the latter for the next three years. Voltas had entered into road construction equipment during the year 2001 under the engineering products and services segments. Also in the same year of 2001, the company had re launched air conditioners under the brand name `Verdant', a premium model targeted at the retail segment. During the year 2002, Voltas made a Joint Venture agreement with Sermo Montaigu, France for perfect moulds. Voltas entered into a distribution tie-up with the 62 million euro Italian air-conditioning major Uniflair in the year 2004, which specialises in the design, production and supply of precision air conditioning and cooling solutions for telecom and internet applications. Also in the same year, made tie-up with RBS Home Appliances Ltd for the use of 640 service centres that Voltas had across the country for after sales service. Simtools Ltd became a wholly owned subsidiary of the company from 27th August of the year 2005. The Company had launched new range of water dispensers in the saem year of 2005.

Voltas had entered into the water treatment business, had undertaken a project at Salt Lake City in Kolkata during the year 2007. The Company had launched a whole new range of Room ACs for the premium and luxury segments in March of the year 2008. Voltas had purchased 13,821,000 equity shares of Rs 10 each of Universal Comfort Products (P) (UCPL) in June of the year 2008, a 50:50 joint venture company between Voltas and Fedders International Air-conditioning (P) (FIACPL). As at August 2008, the company entered into a definitive agreement to acquire majority stake in Rohini Industrial Electricals (RIE), a Mumbai-based company engaged in undertaking large turnkey electrical and instrumentation projects for industrial and commercial sectors.

On 3 March 2009, Voltas announced that its textile machinery division has entered into an alliance with M/s Thies of Germany to offer enhanced value to customers, and support the growth of Indian textiles to the extent that it matches its potential, by selling and servicing of Thies products in India. The alliance will tap into the market potential of the processing segments, which offer unique opportunities for India to augment its share in the international textiles trade.

On 29 May 2009, Voltas announced that its electro-mechanical business has secured two orders worth Rs300 crore for electro-mechanical projects for the most prestigious and noteworthy `new generation' airports in India, namely Kolkata's Netaji Subhas Chandra Bose International (NSCBI) airport, and Chennai International airport.

On 19 March 2011, Voltas and the KION Group agreed to establish a joint venture in India for the development, manufacture, marketing, and servicing of forklift trucks and warehousing equipment. Voltas's material handling operations will be integrated into a new joint venture (JV) company, where the KION Group will hold a majority share. The JV company will be named Voltas Materials Handling (VMH). As the KION Group's sixth brand, Voltas will be used by VMH to focus on the Indian market with a product range that includes diesel/LPG and electric trucks with load capacities of 1.5 to 16 tons. VMH will have twenty-five branches and dealerships all over India.

On 28 February 2014, Voltas Limited and Dow Chemical Pacific (Singapore) Pte. Ltd., a member of the Dow Group Companies (Dow Group), agreed to establish a joint venture company in India to tap the growing Water and Waste Water treatment market in the country. The proposed new company - Voltas Water Solutions Private Limited - will be an equal partnership joint venture. The company will market and distribute standard packaged Water Treatment Systems and Waste Water Treatment Systems of capacity up to 20 m 3/hour, to residential and commercial complexes and light industrial markets in the Indian subcontinent. The entity's operations would include designing, procuring, testing, marketing, selling and servicing of such standard water treatment systems and waste water treatment systems.

On 28 August 2014, ELGi Equipments Limited, Asia's largest manufacturer of air compressors with innovative and technologically superior compressed air systems, entered into a strategic partnership with Voltas Limited for selling ELGi air compressors and accessories to the textile industry. Voltas is India's leading solutions provider for the textile industry, offering world-class products meeting diverse customer needs. Voltas has a pan-India presence through its network of 16 branches and over 300 textile engineers.

On 5 May 2015, Voltas announced its foray into air coolers business with the launch of fresh-air coolers under the Voltas brand. The new range comes with attractive features such as exclusive honeycomb cooling pads, carbonised dust filters and powerful air throw.

On 27 March 2017, Voltas Limited announced that it has fortified its leadership position in the cooling category by crossing 1.5 million units in the year 2016-17.

On 23 May 2017, Voltas Limited and Ardutch B.V. (a subsidiary of Arcelik A.S.; part of the Koc Group - Turkey's largest industrial and services group) agreed to establish a Joint Venture Company (JVC) in India, to enter the consumer durables market in the country.

On 2 February 2018, Voltas Limited launched India's first Window Air Conditioner with DC Inverter technology. It works on a unique Steady Cool Inverter compressor, which is a variable speed compressor, providing steady cooling and steady savings. With this launch, Voltas has strengthened its commitment of continuously bringing latest technology in the Indian market.

On 23 June 2018, Voltas' joint venture with Ardutch B.V. (a subsidiary of Arcelik A.S.; part of the Koc Group - Turkey's largest industrial and services group) Voltbek Home Appliances Private Limited laid ground to start construction of its first manufacturing facility, spread over 60 acres, in Sanand, an upcoming industrial hub in Gujarat. This facility will be manufacturing Home Appliances that include refrigerators and washing machines. Voltbek will leverage Arcelik's global expertise in setting up large, modern, state-of-the-art manufacturing unit, quality and R&D labs and International benchmarking processes and Voltas's strong brand presence, and country wide sales and distribution network.

On 9 October 2018, Voltas announced the launch of Smart ACs that can be controlled using simple voice commands with Amazon Alexa. This new range including the Voltas Inverter Split AC and Voltas Split AC is available exclusively on Amazon India website.

In FY18-19, the Company launched a wide range of white goods products under the Voltas Beko brand. It launched five new SKUs of Front Load Washing Machines with AutoDose Technology (first in the Industry), 12 SKUs of Top Load Washing Machines with Dual Power Rain and a
Table Top Dishwasher suited for Indian kitchens.

During 2018-19, the Company participated in Tata Innovista with company innovations being assessed by panel of Subject Matter Experts from within and outside the Tata Group. It has set up a manufacturing plant for higher tonnage cooling products such as VRF (Variable Refrigerant Flow) products and Chillers in Waghodia, Gujarat. It acquired land admeasuring 65 acres approx. near Tirupati for manufacture and assembly of air conditioners and other related cooling products.

In 2019-20, Company launched two greenfield manufacturing plants for its Commercial Products Business and Home Appliances
(Voltas Beko) business. The Commercial Products facility was launched in Waghodia, Gujarat. Equipped with technologically advanced R&D
and testing facilities, the factory has been instrumental in introducing differentiated and competitive products in the market. It launched innovative UV products and solutions to help stop the spread of the coronavirus. In collaboration with Arçelik, it commissioned a manufacturing facility in Sanand, Gujarat, to boost the production and capture a larger market share in the white goods segment.

In FY'21, the Company launched 46 SKUs of Fresh Air Coolers under various sub-categories such as Personal, Window, Tower and Desert Air Coolers. It also strengthened its overall portfolio by introducing 43 SKUs of Commercial Refrigeration products, including Convertible Freezer, Freezer on Wheel and Curved Glass Freezer. It launched 18 SKUs of Water Dispensers and 28 SKUs of Water Coolers. The Company strengthened the electrical business with its credentials in solar EPC business with Azure Power and S.B. Energy, Rajasthan orders. Further, it
bagged most orders under the MEP business from the healthcare and building segments. It also supported construction and upgradation of COVID-19 medical facilities at various locations across India through MEP project services during the pandemic. It commissioned two sewage treatment plants for the water business in Patna at Beur (43 MLD) and Karmalichak (37 MLD), as part of the Namami Gange
Mission, inaugurated by Prime Minister Narendra Modi on 15 September, 2020. The Company additionally implemented some key initiatives, including Digital Project Monitoring, Vendor Portal, Monitoring of Sites through web cameras for safety and centralised bidding and estimation for risk mitigation. It streamlined the focus towards gaining profitable orders in healthcare, data centres, water treatment & supply, sub-stations, State Discoms and solar EPC segments.

In FY'22, the Company launched PureAir 6 Stage Adjustable Inverter AC, India's first AC with HEPA Filter technology. It strengthened product offerings under commercial refrigerators by launching 60 SKUs. It launched 32 SKUs under Maha-adjustable inverter air conditioners. It received license from Bureau of Indian Standards (BIS) for Air Cooled Ducted and Packaged Air Conditioner. It commissioned project Gandhinagar Railway and Urban Development Corporation Ltd (GARUD) in Gandhinagar, Gujarat, inaugurated by Hon'ble Prime Minister, Mr. Narendra Modi, It commissioned one project of 300 MW AC & 225 MW DC under Solar EPC for Azure Power and second project for SB Energy, later renamed as Adani, for 71 MW AC & 104 MWp DC. It gained tier 1 status in Solar EPC business. Besides these, it launched 74 new SKUs in 2021-22 to further strengthen product portfolio and new products with new and upgraded technologies under all categories.`

Revenues grew by 11.8% YoY; Reported loss of Rs1.1bn: Sales grew 11.8% YoY to ~Rs20.1bn, led by growth in UCP (11.2% YoY) and EMPS (17.1% YoY). EPS business revenue declined by 5.4% YoY. Gross margin declined by 290bps YoY to 24.1%. EBITDA declined 50.9% YoY to Rs764mn, while EBITDA margins contracted by 490bps YoY to 3.8%. In terms of segmental EBIT margin, UCP segment margin came at 7.4% (-190bps YoY) whereas EMPS reported loss of Rs461mn. PBT declined by 47.7% YoY to Rs895mn. Adj. PAT declined 71.9% YoY
to Rs270mn. Voltas reported net loss of Rs1.1bn due to provision of Rs1.4bn on account of cancellation of overseas contract by main contractor and encashment of bank guarantee.

CONCALL TAKEAWAYS:
1)VOLT’s inverter category increased its contribution to 82%, mainly with tactical pricing and improved features,
2)Management expects good demand in Q4FY23, with softening of rural inflation and buying across sales
channels on forecast of hot weather,
3)Commercial refrigerators continued growth momentum, mainly from OEM and retail chain,
4) Market share for Air Cooler was 9.2% with new SKUs and targeted distribution,
5)The carry forward order book for domestic projects stood at Rs45.4bn related to Water, HVAC, Rural Electrification and Urban Infrastructure,
6)One-off losses in EMPS related delayed collection in Q2FY23/Q3FY23 for two overseas projects, out of which one is halfway in timeline and another one almost completed,
7) EPS segment continued its healthy traction with delivery of textile machinery and focus on after sales service, 8)Voltbek brand has sold over 3mn units since its launch, while demand for appliances was muted in Q3FY23 resulting in volume drop. It is expected to pick up with introduction of new SKUs.

If you are a long term investor then do hold Voltas but for short term period the price will have fluctuation due to market condition and valuation.

Disclaimer: Information provided is only for educational purpose. Please consult your investment adviosor before making any investment decisions

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Latest Questions
Dr Nagarajan Jsk

Dr Nagarajan Jsk   |202 Answers  |Ask -

NEET, Medical, Pharmacy Careers - Answered on Jan 05, 2025

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Which overseas country MBBS will be better in-terms of quality education with reasonable fees (less than 50Lacs) for Indian students who may practice in india after FNG test?
Ans: Before the introduction of NEET, the scenario for admission to medical colleges was quite different. Many candidates aspiring to study medicine who did not achieve sufficient marks in their HSC (Higher Secondary Certificate) chose to pursue their education abroad. However, with NEET in place, numerous opportunities are now available in India.

The medical admission process in India has become more standardized, so there is no longer a need to seek alternatives overseas. In this context, I strongly suggest that pursuing an MBBS in India is preferable rather than from other countries. It is important to understand that candidates must clear NEET for both admission and graduation.

There are several challenges that young students—who are often minors—face when studying abroad. Our education system has not equipped them to handle various situations in foreign countries. Some of the major difficulties include:

1. Admissions are often conducted through agencies, which can result in significant financial losses.
2. Issues related to food and accommodation can arise.
3. Adapting to a different culture and behavior can be challenging, and young students may be tempted towards negative influences.

So, it might be wiser for candidates to complete their undergraduate education in India and consider pursuing postgraduate studies abroad later on. We should encourage our younger generation to take competitive exams, as this will help build their confidence and better prepare them for their future.
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Kanchan Rai  |469 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 05, 2025

Asked by Anonymous - Jan 05, 2025Hindi
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How to overcome from past memories
Ans: Healing from painful past memories is an intimate and deeply emotional journey. It’s not just about forgetting what happened but learning to carry those experiences in a way that doesn’t weigh you down.

Start by honoring your feelings. These memories are a part of your story, and the emotions tied to them are valid. Allow yourself to sit with the pain, the sadness, or even the anger, without rushing to push it away. Sometimes, simply acknowledging the hurt can bring a sense of release.

Mindfulness can be a gentle companion in this process. When the past pulls you back, focus on the present moment. Notice the feel of your breath, the warmth of the sun, or the grounding sensation of your feet on the floor. These small acts remind you that you are here, now, safe and capable of healing.

Embrace self-compassion. Speak to yourself as you would to a dear friend. Remind yourself that it’s okay to have scars and that healing takes time. You don’t have to be perfect or have it all figured out. It’s enough to take one step at a time.

Sometimes, letting go means forgiving—not just others, but yourself too. Forgiveness doesn’t mean forgetting or condoning what happened. It’s about freeing yourself from the chains of resentment and allowing space for peace and growth.

Surround yourself with warmth and support. Lean on those who uplift you, who remind you of your strength, and who offer you love without judgment. These connections can be a soothing balm for the soul.

Lastly, be patient with yourself. Healing is not linear, and it’s okay to have days when the past feels heavy again. Trust in your resilience and know that each day, you are growing stronger, finding new ways to hold your memories with tenderness rather than pain. You are worthy of peace, love, and joy in your present and future.

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Relationships Expert, Mind Coach - Answered on Jan 05, 2025

Asked by Anonymous - Jan 02, 2025Hindi
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Two years ago, I met someone, at a workplace inclusion workshop in Mumbai. He identified himself as a transgender man, We clicked instantly, and our friendship turned into a romantic relationship over time. He is incredibly supportive, kind, and ambitious. I admire him deeply because he has faced many struggles to be where he is today. My parents found out about him recently, and the backlash has been immense. They’ve threatened to disown me, saying I’m bringing shame to the family. They’re pushing me to break up with him and marry someone 'normal.' The societal pressure, whispers from neighbours, and even judgment from some colleagues are making things unbearable. I love him but I also feel torn between my family, cultural expectations, and my happiness. What should I do?
Ans: First, it's important to acknowledge your feelings of being torn. This is a natural response to the competing demands of love, family loyalty, and cultural expectations. Allow yourself to feel these emotions without judgment; they are valid and understandable.

Next, consider the core values and priorities in your life. What kind of life do you envision for yourself? What role do love, authenticity, and personal happiness play in that vision? Reflecting on these questions can help clarify your path forward.

Communication with your family is crucial, though it may be difficult. Express your feelings, the depth of your love for your partner, and the happiness he brings into your life. It might not change their perspective immediately, but it's important for them to hear your truth. Seek moments of calm and understanding, and try to create a space for dialogue rather than confrontation.

It’s also essential to build a support system beyond your family. Surround yourself with friends, mentors, or support groups who understand and affirm your relationship. This community can provide emotional strength and perspective, reminding you that you are not alone in facing these challenges.

Lastly, prioritize your emotional well-being. Engage in activities that bring you peace and joy, whether it's spending time with supportive friends, pursuing hobbies, or even seeking professional counseling. A therapist or coach can offer a safe space to explore your feelings and help you develop strategies to navigate this complex situation.

Remember, the decision about how to proceed must ultimately align with what brings you the most peace and fulfillment. Balancing love and family expectations is difficult, but staying true to yourself and your values is essential for long-term happiness.

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Ramalingam

Ramalingam Kalirajan  |7438 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 05, 2025

Money
Hello Sir, I am 44 years old man. I want to start SIP for my children, 6.5 years old daughter and 2.5 years old son. The objective is to secure their future and the funds can be used when they want to go for graduation/higher studies. I have shortlisted the following funds, please let me know if you recommend any changes. Thank you! 1-UTI Nifty50 Index Direct: Rs.2000 2-ICICI Prudential Nifty Next 50 Index Fund: Rs.2000 3-Canara Robeco Bluechip Equity Fund: Rs.2000 4-ICICI Prudential Value Discovery Fund: Rs.3000 5-Parag Parikh Flexi Cap Fund: Rs.2000 6-ICICI Prudential Equity & Debt Fund: Rs.3000 7-Quant Active Find: Rs.3000 8-SBI Contra Fund: Rs.3000 9-Nippon India small cap fund: Rs.3000 10-Nippon India ETF Gold BeES: Rs.2000
Ans: Creating a portfolio for your children’s future is a thoughtful and responsible step. Ensuring the right mix of funds can maximise returns, manage risks, and help achieve your financial goals effectively. Below is an evaluation of your selected portfolio, along with recommendations to streamline and optimise it.

Evaluating Your Portfolio
1. Too Many Funds
You have selected 10 funds, which might lead to over-diversification.
Over-diversification can dilute returns and make tracking difficult.
2. Balanced Allocation Missing
There’s a heavy tilt towards equity with insufficient diversification across asset classes.
Adding a debt component can provide stability and reduce volatility.
3. Index Funds
UTI Nifty50 Index Fund and ICICI Prudential Nifty Next 50 Index Fund:
Index funds lack flexibility and cannot outperform during bear markets.
Actively managed funds might be better for your long-term goals.
4. Mid-Cap and Small-Cap Exposure
Nippon India Small Cap Fund:
High risk but high return potential.
Retain for diversification but limit exposure to 10%-15% of your total investments.
5. Thematic and Contra Funds
SBI Contra Fund and Quant Active Fund:
Thematic and contra funds have niche strategies, making them riskier.
Retain only one if aligned with your risk appetite.
6. Gold ETF
Nippon India ETF Gold BeES:
Adds diversification and inflation protection.
However, limit allocation to 5%-10% of your portfolio.
Recommended Portfolio for Your Goals
1. Core Equity Allocation (60%-70%)
Focus on funds that provide long-term stability and growth.

Large-Cap Funds: Replace index funds with actively managed large-cap funds for better returns.
Flexi-Cap Funds: Retain Parag Parikh Flexi Cap Fund for its global diversification and balanced approach.
Mid-Cap and Small-Cap Funds: Retain one small-cap fund (Nippon India Small Cap Fund) for growth potential.
2. Hybrid Funds (20%-25%)
Include hybrid funds to balance equity and debt.

Retain ICICI Prudential Equity & Debt Fund for stability and moderate returns.
3. Gold (5%-10%)
Continue investing in Nippon India ETF Gold BeES for diversification.

Proposed Allocation
To streamline your portfolio, allocate investments more strategically:

Large-Cap Equity Fund: Invest Rs. 4,000 monthly in a strong actively managed large-cap fund like Canara Robeco Bluechip Equity Fund. Large-cap funds provide stability and consistent growth for long-term goals.

Flexi-Cap Fund: Continue investing Rs. 4,000 monthly in Parag Parikh Flexi Cap Fund. This fund offers global diversification and a balanced approach to equity exposure.

Small-Cap Fund: Retain Nippon India Small Cap Fund and allocate Rs. 3,000 monthly. Small-cap funds add high-growth potential but keep the exposure minimal to manage risk.

Hybrid Fund: Allocate Rs. 5,000 monthly to ICICI Prudential Equity & Debt Fund. This hybrid fund balances equity and debt exposure, providing stability with moderate growth.

Gold ETF: Continue Rs. 2,000 monthly in Nippon India ETF Gold BeES. Gold adds a hedge against inflation and enhances portfolio diversification.

Additional Recommendations
1. Debt Component for Stability
Consider short-term debt funds or liquid funds for low-risk capital appreciation.
These can be used for nearer-term educational needs like school fees.
2. Gradual SIP Increases
Increase SIPs by 10%-15% annually as your income grows.
This ensures your investments grow in tandem with inflation.
3. Portfolio Review and Rebalancing
Review your portfolio annually to evaluate performance.
Rebalance if any fund consistently underperforms for over 2-3 years.
4. Tax Planning
Retain an ELSS tax-saving fund to maximise tax benefits under Section 80C.
Final Insights
Your disciplined approach to securing your children's education is commendable. This revised portfolio offers a balanced mix of growth and stability. It ensures you can meet future education milestones confidently. Stay consistent, increase contributions periodically, and monitor performance regularly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7438 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 05, 2025

Asked by Anonymous - Jan 04, 2025Hindi
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Money
I have 60 lakhs inr as retirement money.Where to invest to generate an income of 40000-50000 plus appreciate the capital and im what ratio to invest to save the capital in case of a rainy day?
Ans: To generate a monthly income of Rs. 40,000 to Rs. 50,000 while preserving and appreciating your retirement corpus of Rs. 60 lakhs, it is crucial to follow a balanced and diversified investment strategy. Here's a comprehensive plan that balances income generation, capital appreciation, and safety for rainy-day needs:

Investment Allocation for Income and Capital Growth
1. Fixed Income Instruments (30%-40%)
Objective: Stable monthly income and capital protection.

Options:

Senior Citizen Savings Scheme (SCSS): If you are 60+, invest up to Rs. 30 lakhs for quarterly payouts.
Post Office Monthly Income Scheme (POMIS): Offers reliable monthly income with low risk.
Bank Fixed Deposits (FD): Choose deposits with monthly interest payouts for stable cash flow.
Debt Mutual Funds: Consider high-quality short-term or dynamic bond funds for better tax efficiency and returns.
Approximate Allocation: Rs. 20-25 lakhs.

2. Equity Mutual Funds (40%-50%)
Objective: Long-term capital appreciation to counter inflation.

Options:

Balanced Advantage Funds (BAFs): Dynamically allocate between equity and debt for moderate risk.
Large Cap Funds: Focus on blue-chip companies for stability.
Multi-Cap Funds: Provide diversified exposure to large, mid, and small caps.
Approach: Start a Systematic Withdrawal Plan (SWP) from equity funds after 3 years for tax-efficient income.

Approximate Allocation: Rs. 25-30 lakhs.

3. Emergency Fund (10%-15%)
Objective: Cover unforeseen expenses or emergencies.

Options:

Keep 6-12 months’ expenses in liquid funds or high-interest savings accounts.
Use short-term FDs or sweep accounts for easy access to funds.
Approximate Allocation: Rs. 6-9 lakhs.

4. Alternative Investment (Optional - 5%-10%)
Objective: Enhance portfolio diversification.

Options:

Gold ETFs/Sovereign Gold Bonds: Hedge against inflation and economic uncertainty.
Corporate Bonds or Non-Convertible Debentures (NCDs): Ensure AAA-rated for safety.
Approximate Allocation: Rs. 3-5 lakhs.

Monthly Income Strategy
Fixed Income Source: Use interest from SCSS, POMIS, and FDs for regular monthly cash flow.
Equity SWP: Start withdrawing Rs. 15,000-20,000 monthly after 3 years. This ensures tax efficiency and steady income.
Rainy-Day Protection
Maintain a liquid fund with Rs. 6-9 lakhs for quick access during emergencies.

Avoid locking too much in illiquid instruments like long-term FDs or property.

Points to Remember
Rebalance Annually: Review and adjust allocation to align with market conditions.
Tax Efficiency: Debt instruments like SCSS and POMIS are taxable. Equity funds offer LTCG tax benefits.
Inflation Adjustment: Reinvest surplus income to ensure your corpus grows with inflation.
Final Insights
A balanced mix of fixed income and equity can provide regular income and capital growth. Prioritise liquidity for emergencies while optimising tax efficiency. This approach ensures financial independence throughout retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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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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