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Vivek

Vivek Lala  |301 Answers  |Ask -

Tax, MF Expert - Answered on May 19, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
CHANDRASHEKHAR Question by CHANDRASHEKHAR on May 14, 2024Hindi
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Which Mutual Fund can give me good monthly income to meet home needs

Ans: Hello, depending on your age , corpus , active income and duration of the investment the above question can be answered
If you have active then you don't need any cashflows from mutual funds, but if you don't have any active income then the thumb rule for SWP can be 4-6% of the corpus. If you maintain this with a balanced portfolio, your portfolio will give you good results over a period of 10-15-20yrs

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

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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Hi sir I am a housewife ans have small amount of savings Please suggest best mutual fund
Ans: It's great to see you taking an interest in mutual funds as a means to grow your savings. Let's explore some options:

• Consider starting with a balanced fund, which offers a mix of equity and debt investments.
• These funds provide a balance between growth potential and stability, making them suitable for conservative investors like yourself.

• Look for mutual funds with a track record of consistent performance and a seasoned fund manager.
• Research different funds and assess factors like expense ratios, investment philosophy, and historical returns.

• Opt for funds that align with your investment objectives and risk tolerance.
• If you have a longer investment horizon and are willing to take on more risk for potentially higher returns, you may consider equity funds.

• Conversely, if you prefer lower risk and more stability, debt funds may be a better fit for you.
• They invest in fixed-income securities like bonds and offer regular interest income.

• Keep in mind that past performance is not indicative of future results, so focus on the fund's investment strategy and manager expertise.
• Additionally, consider consulting with a Certified Financial Planner to help you select the best mutual fund based on your financial goals and circumstances.

• Remember to diversify your investments across different mutual funds to spread risk and maximize returns.
• Regularly review your investment portfolio and make adjustments as needed to stay on track towards your financial goals.

By choosing mutual funds that suit your risk profile and investment objectives, you can set yourself on the path to achieving your financial aspirations. Keep learning and stay committed to your investment journey. You're taking a positive step towards securing your financial future!

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Ramalingam

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2024

Asked by Anonymous - May 06, 2024Hindi
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I want to invest in mutual funds, and buy a house in 10 years. My monthly salary is 1 lakh per month, expenses are 40K per month. Which mutual funds should I consider?
Ans: Investing in mutual funds to achieve your goal of buying a house in 10 years is a prudent decision. Considering your financial situation and objectives, let's outline a suitable portfolio strategy.

Goal-based Investing
Your goal of purchasing a house in 10 years necessitates a focused investment approach. We'll aim for a balanced portfolio that combines growth-oriented and stability-focused funds to generate wealth steadily over the long term.

Asset Allocation Strategy
Given your time horizon of 10 years, a predominantly equity-oriented portfolio is advisable to harness the potential of higher returns. We'll allocate a portion of your investable surplus to equity funds while maintaining a conservative allocation to debt funds for stability.

Mutual Fund Selection
Large-cap Equity Funds: These funds invest in well-established companies with a track record of stable performance. They provide stability to the portfolio while offering growth potential.

Multi-cap or Flexi-cap Funds: These funds have the flexibility to invest across market capitalizations, allowing them to capitalize on opportunities across the market spectrum. They offer a balanced approach to growth and risk.

Aggressive Hybrid Funds: Combining equity and debt components, these funds provide a balanced risk-return profile, making them suitable for long-term wealth accumulation goals like yours.

Debt Funds: Including short to medium duration debt funds can provide stability to the portfolio and mitigate the volatility associated with equity investments.

Systematic Investment Plan (SIP)
Given your monthly surplus, setting up SIPs in the selected funds will enable disciplined investing while leveraging the power of rupee cost averaging.

Professional Guidance
As a Certified Financial Planner, I recommend periodically reviewing your portfolio's performance and rebalancing it as needed to stay aligned with your financial goals.

Conclusion
Constructing a diversified mutual fund portfolio tailored to your goal of buying a house in 10 years requires a balanced approach that combines equity and debt instruments. With disciplined investing and professional guidance, you can steadily build wealth and achieve your aspiration of homeownership.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jul 15, 2024Hindi
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I am retired I want to invest my retirement amount for regular income.kindly advice best mutual fund
Ans: Assessing Your Needs
Investing your retirement corpus requires a strategic approach. The goal is to generate regular income while preserving your capital. As a retiree, it's crucial to strike a balance between safety and returns.

Understanding Your Financial Situation
Retirement Status: You are retired.
Income Requirement: Regular income from investments.
Risk Tolerance: Likely low to moderate.
Investment Strategy
To ensure regular income, you need a diversified portfolio. This portfolio should include a mix of equity and debt investments. Here's a breakdown:

Debt Mutual Funds
Debt mutual funds provide stable returns with lower risk. They are ideal for regular income.

Short-term Debt Funds: These funds are less volatile and provide steady income.
Long-term Debt Funds: These funds offer higher returns but come with slightly higher risk.
Hybrid Mutual Funds
Hybrid funds invest in both equity and debt. They balance growth and stability.

Balanced Advantage Funds: These funds adjust the equity-debt ratio based on market conditions.
Monthly Income Plans (MIPs): These funds focus on providing monthly income through a mix of debt and equity.
Equity Mutual Funds
Equity funds offer higher returns but come with higher risk. A small portion of your portfolio can be allocated here for growth.

Large-cap Funds: These funds invest in large, established companies with stable returns.
Dividend Yield Funds: These funds invest in companies that pay regular dividends.
Systematic Withdrawal Plan (SWP)
SWP allows you to withdraw a fixed amount from your mutual fund investments regularly. This ensures a steady cash flow.

Regular Income: Set up an SWP to withdraw monthly income.
Capital Preservation: Only a portion of your returns is withdrawn, preserving your capital.
Health Insurance
Ensure you have adequate health insurance coverage. Medical expenses can erode your retirement savings.

Adequate Coverage: Review and increase your health insurance coverage if needed.
Critical Illness Cover: Consider adding a critical illness cover for added protection.
Emergency Fund
Maintain an emergency fund to cover unexpected expenses. This fund should be easily accessible.

Liquid Assets: Keep 6-12 months' worth of expenses in a liquid fund or savings account.
Regular Review and Adjustments
Regularly review your investment portfolio. Adjust based on market conditions and changing needs.

Annual Review: Conduct an annual review of your investments.
Rebalance Portfolio: Adjust the equity-debt ratio based on performance and risk tolerance.
Final Insights
Investing for regular income in retirement requires careful planning. A diversified portfolio with debt, hybrid, and equity funds can provide steady income and capital preservation. Regular reviews and adjustments will ensure your investments align with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Anshuman

Dr Anshuman Manaswi  |7 Answers  |Ask -

Plastic-Aesthetic Surgeon, Emergency Care Consultant - Answered on Dec 06, 2024

Asked by Anonymous - Dec 06, 2024Hindi
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I’m 38, female, working as a business consultant in Pune. After having two kids, I am struggling with post-pregnancy weight and loose skin around my abdomen. I’ve tried everything from dieting to exercise, but the stubborn fat and loose skin just won’t budge. I’ve been considering liposuction or a tummy tuck. Do you think it will help? Could you please explain the risks and benefits of both liposuction and a tummy tuck? How do these two procedures compare in terms of results and recovery time? I want to understand the procedure and risk involved before making a decision.
Ans: Your problem is same as with lakhs of women who are proud mothers. Loose tummy skin with stretch marks along with some bulge in the abdomen is due to the extra skin of the pregnancy which has not shrunk back due to lack of elasticity. Also, the muscles of the abdomen (the abs) become loose due to the stretch during pregnancy.
Unfortunately, these problems cannot be bettered significantly by any non surgical methods because they are mechanical problems.
Weight loss and exercises can make the flab thin but cannot shrink the skin.
So the only solution in most cases is TUMMY TUCK SURGERY (not non surgical so called Tummy tuck which is mostly ineffective). This surgery is very safe and satisfying. It not only removes the loose skin with stretch marks but also tightens the muscle. Simultaneous liposuction adds to better figure. it also helps in relieving back pain by balancing the front and back muscles and also takes care of increased frequency of urine which is very common after pregnancy.
Yes, there is a horizontal scar in the panty line l, but that is a very small price to pay for a much better figure and better functionality.
Overall, this surgery is one of the most satisfying surgeries in plastic surgery.

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Ramalingam

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2024

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Planning to start an SIP of 15K with HSBC Multicap fund Regular growth. Is it a gooddecision?
Ans: Starting an SIP of Rs 15,000 monthly is a disciplined investment step. The choice of a multicap fund reflects a willingness to diversify. Let's analyse this decision comprehensively.

Multicap Funds: Key Features
Diversified Portfolio: Multicap funds invest across large-cap, mid-cap, and small-cap stocks. This balances growth potential and stability.

Flexibility: Fund managers can dynamically adjust allocations across market segments based on market trends.

Long-Term Potential: Multicap funds aim for consistent returns over 7–10 years or longer.

Risk Factor: Multicap funds carry higher risk compared to pure large-cap funds. They are not suitable for short-term goals.

Evaluating Regular Growth Option
Reinvestment Advantage: The regular growth option helps in reinvesting gains for compounding over time.

No Payouts: Unlike dividend options, there are no regular payouts, which suits long-term wealth creation.

Tax Efficiency: Growth options are more tax-efficient as gains are realised only on redemption.

Benefits of Investing Through a Certified Financial Planner
Expert Guidance: A Certified Financial Planner ensures your fund aligns with your risk tolerance and goals.

Portfolio Monitoring: They help monitor and rebalance the portfolio periodically.

Benefits of Regular Plans: Investing through regular plans gives access to expert advice without additional effort.

Alternatives to Consider
While multicap funds are good, actively managed equity funds may also suit your needs.

Mid-Cap Funds: Offer higher growth potential but with greater risk. Suitable if your risk appetite is high.

Hybrid Funds: Provide a balanced mix of equity and debt, reducing volatility.

Diversified International Funds: Offer exposure to global markets and hedge against domestic market risks.

Key Considerations Before Investing
Investment Horizon: Multicap funds are ideal for long-term goals of 7+ years.

Risk Tolerance: These funds involve exposure to mid- and small-cap stocks, which are volatile.

Review Fund Performance: Assess the fund's past performance over 5–10 years. Look for consistent returns and robust fund management.

SIP as a Long-Term Strategy: SIPs mitigate market volatility by averaging the cost of investments over time.

Rebalancing Your Overall Portfolio
If this SIP is part of a larger portfolio, ensure it complements your existing asset allocation.

Equity-Debt Mix: Maintain a balance between equity and fixed-income investments based on your age and risk profile.

Diversify Across Fund Categories: Avoid overexposure to one type of fund or sector.

Emergency Fund First: Ensure your emergency fund is sufficient before committing to long-term SIPs.

Tax Implications
Equity Funds: Gains above Rs 1.25 lakh are taxed at 12.5% (LTCG). Short-term gains are taxed at 20%.

Regular Portfolio Reviews: Assess gains periodically and plan redemptions to minimise tax liability.

Steps to Enhance Returns
Increase SIP Amounts Over Time: Increase SIP contributions with salary hikes or surplus cash inflow.

Avoid Redeeming Early: Stay invested for the long term to allow compounding to work effectively.

Use STP for Lump Sum Investments: If you have additional funds, consider a Systematic Transfer Plan (STP) to mitigate timing risks.

Final Insights
Starting an SIP in a multicap fund is a promising move for long-term wealth creation. Ensure this investment aligns with your goals and complements your existing portfolio. Regularly review performance and rebalance when needed. Work with a Certified Financial Planner for ongoing advice and insights.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2024

Asked by Anonymous - Dec 01, 2024Hindi
Money
I am 40, a single parent with 2 daughters aged 2 and 1. I have following assets that i have accumulated over my employment 1. 1.6 Cr in Indian equity 2. 60L in indian MFs 3. 2 Cr in EPF 4. 72L in PPF 5. 12L in NPS 6. 51 L in SGBs 7. 72L in Gold/diamond jewellery 8. 5Cr in company stocks. These are from the 2 employers i have worked for, almost equally distributed and are mostly vested (trading publicly) 9. Real estate - 3 houses worth 8.7 Cr. Primary house is 6 Cr 10. I have 4 term insurance schemed running, in around 7 years, they will start generating an average income of 60L annually till 2043 11. 60L in Bank/FDs 12. 8L in SSYs for girls While i feel i am doing well, at times with hugely inflation in medical and education fees, i feel its just so hard to estimate what will i need to plan for when my children are ready to go to college in 16 odd years. I keep on hearing mind boggling college fees from my friends, so an approx assessment of education corpus will help. Also i feel keeping equity in single stock as in case with my 2 employers is highly risky, so any suggestion on how to systematically withdraw and invest elsewhere will help. Also looking at my portfolio, do you have any rebalancing advice. I am planning to work as long as possible so have another 18 to 20 years of work life left but given the volatile job market nowadays, want to be mentally and financially prepared
Ans: The cost of education, especially higher education, has been rising significantly. Assuming a 16-year horizon for your daughters, we need to estimate the corpus required for both domestic and international education.

Domestic Education Costs: Presently, premier institutions in India charge around Rs 25–50 lakh for undergraduate courses. Factoring an annual inflation of 8–10%, this amount may grow to Rs 1.5–2 crore per child for a 4-year course.

International Education Costs: For studies abroad, current fees range between Rs 1–2 crore for undergraduate programs. Adjusted for inflation, this could increase to Rs 3–5 crore per child in 16 years.

Considering both scenarios, you should aim for a total education corpus of Rs 6–8 crore. This amount provides flexibility for either domestic or international options.

Recommendations for Your Employer Stock Holdings
Your company stocks form a significant portion of your portfolio (Rs 5 crore). Holding large amounts in single stocks increases risk. Here's how to diversify systematically:

Gradual Divestment Plan: Avoid selling all shares at once. Instead, divest 10–15% annually over the next 5–7 years.

Reinvest in Diversified Assets: Allocate the proceeds into actively managed equity mutual funds, fixed-income instruments, and sovereign gold bonds. This ensures diversification across asset classes.

Tax Considerations: Plan divestment to optimise tax liabilities. Gains from these stocks may be subject to long-term capital gains (LTCG) tax at 12.5% after Rs 1.25 lakh.

Portfolio Rebalancing Advice
Your portfolio shows strong accumulation across multiple asset classes. However, rebalancing is necessary to manage risks and align with goals.

Asset Allocation Overview
Equity Investments:

You have Rs 1.6 crore in Indian equities and Rs 60 lakh in mutual funds. Including Rs 5 crore in employer stocks, equity dominates your portfolio.
Gradually reduce exposure to individual stocks and shift to actively managed equity mutual funds.
Fixed Income Investments:

Your EPF (Rs 2 crore), PPF (Rs 72 lakh), and NPS (Rs 12 lakh) provide stable, low-risk returns.
Keep these investments as a core part of your portfolio to ensure stability.
Precious Metals:

You have Rs 72 lakh in gold/diamond jewellery and Rs 51 lakh in sovereign gold bonds.
Jewellery has sentimental value but does not generate returns. Focus on financial gold like SGBs.
Real Estate:

Your real estate portfolio (Rs 8.7 crore) is substantial, with Rs 6 crore in your primary home.
Avoid adding further real estate investments due to low liquidity and high maintenance costs.
Cash and Bank Deposits:

Rs 60 lakh in FDs and Rs 8 lakh in SSYs are good for short-term needs and children's savings.
Suggested Reallocation Strategy
Increase Mutual Fund Investments:

Channel proceeds from employer stocks into equity mutual funds. Use SIPs or STPs for a gradual investment approach.
Actively managed mutual funds offer better returns and professional management.
Diversify into Balanced Assets:

Allocate a portion of your equity proceeds into balanced advantage or hybrid mutual funds.
These funds reduce risk and provide moderate growth.
Build an International Equity Portfolio:

Explore international equity funds to benefit from global diversification.
Strengthen Fixed Income Investments:

Invest in high-quality corporate bonds or debt mutual funds for additional stability.
Emergency Fund Allocation:

Ensure you have at least Rs 30–50 lakh as an emergency fund in liquid instruments like ultra-short-term debt funds.
Optimise SSY Contributions:

Continue annual contributions to the Sukanya Samriddhi Yojana (SSY) for tax-free growth.
Planning for Income Stability
You plan to work for 18–20 more years, but the volatile job market can be unpredictable.

Term Insurance Payouts:

In 7 years, your term plans will generate Rs 60 lakh annually till 2043.
Use these payouts to fund living expenses and reinvest the surplus for long-term goals.
Passive Income Generation:

Consider creating a passive income stream through investments in dividend-paying mutual funds.
Avoid single stocks for dividends as they are riskier compared to mutual funds.
Retirement Corpus Growth:

Your EPF and PPF are excellent retirement tools. Avoid withdrawals to maximise compounding benefits.
Additional Financial Goals
Healthcare Planning:

Rising medical costs make comprehensive health insurance essential.
Ensure sufficient health coverage for yourself and your daughters.
Estate Planning:

Create a will to safeguard your assets for your daughters.
Consider setting up a trust for seamless asset transfer.
Tax-Efficient Withdrawals:

Use tax-saving strategies while withdrawing from investments. Consult a Certified Financial Planner for guidance.
Some Final Insights
Your portfolio is well-diversified across asset classes, but equity exposure to single stocks poses risks.
Focus on systematically reallocating from employer stocks to actively managed mutual funds.
Aim for a robust education corpus of Rs 6–8 crore to meet your daughters' future needs.
Strengthen your financial plan with proper healthcare coverage and estate planning.
Regularly review and rebalance your portfolio to ensure alignment with goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |7213 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2024

Asked by Anonymous - Nov 27, 2024Hindi
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I am 62 and planning to retire. I have a corpus of 1.25 crore and need around Rs 75000 every month for expenses. What are the various avenues where I can invest and would fetch me the desired amount?
Ans: Retirement planning is crucial, especially when the goal is financial independence. Your corpus of Rs 1.25 crore and monthly need of Rs 75,000 require careful investment. The objective is to ensure the corpus lasts while meeting your expenses. Diversifying investments and balancing returns with risks is essential.

1. Emergency Fund Allocation

Allocate Rs 10 lakh to an emergency fund.
Invest this in liquid funds or high-interest savings accounts.
Ensure funds are accessible during emergencies.
2. Monthly Income Requirement Analysis

Your monthly need is Rs 75,000, or Rs 9 lakh annually.
This is around 7.2% of your total corpus.
Investments must generate this return without eroding the principal.
3. Systematic Withdrawal Through Debt Mutual Funds

Debt mutual funds provide stability and moderate returns.
They suit investors seeking steady cash flow.
Withdraw monthly using a systematic withdrawal plan.
Taxation Perspective

Gains from debt funds are taxed per your income slab.
Plan withdrawals efficiently to minimise tax.
4. Balanced Funds for Growth and Stability

Balanced funds invest in both equity and debt.
These offer potential growth and regular income.
They reduce risk while ensuring inflation-beating returns.
Why Avoid Index Funds?

Index funds lack flexibility in stock selection.
Actively managed funds provide better downside protection.
Fund managers can outperform during market fluctuations.
5. Actively Managed Equity Mutual Funds for Growth

Equity mutual funds can provide higher returns over time.
Opt for diversified funds managed by experienced professionals.
Use regular plans through mutual fund distributors with CFP credentials.
Why Choose Regular Funds?

Certified financial planners offer valuable guidance.
They assist in selecting funds tailored to your goals.
Direct funds lack this personalised support and expertise.
6. Fixed Income Options for Stability

Invest a portion in fixed deposits with reliable banks.
Senior Citizen Savings Schemes (SCSS) offer regular income.
Explore RBI floating-rate bonds for assured returns.
Benefits of Fixed Income Options

Low risk ensures stability.
These options supplement your core investment strategy.
7. Diversified Investment Portfolio

Allocate across equity, debt, and fixed income.
Diversification reduces risks and maximises returns.
Maintain liquidity for unplanned expenses.
8. Inflation Protection

Inflation erodes purchasing power over time.
Allocate 40–50% of your corpus to equity for growth.
Adjust allocations annually to maintain balance.
9. Periodic Portfolio Review

Review your investments every six months.
Adjust based on market conditions and life changes.
A Certified Financial Planner can guide these reviews.
10. Avoid Insurance-Cum-Investment Plans

If holding LIC or ULIP, consider surrendering them.
Reinvest proceeds into mutual funds for better growth.
Separate insurance and investment for clarity.
11. Health Insurance

Comprehensive health insurance is critical in retirement.
Avoid relying on savings for medical emergencies.
Ensure coverage meets inflation-adjusted medical costs.
12. Tax Planning and Efficiency

Structure investments to minimise tax outgo.
Utilise senior citizen exemptions and deductions wisely.
Keep track of the latest tax rules for financial decisions.
13. Creating a Will

Draft a clear and legally valid will.
Specify asset distribution to avoid future disputes.
Periodically update it as per life events.
Final Insights

Retirement planning is about ensuring financial independence and peace of mind. A diversified investment portfolio is key to balancing returns and stability. With disciplined management and regular reviews, your corpus can sustain your needs throughout retirement.

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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