I am a widow. My husband booked a flat in 2014. It was to be completed in 2017 but was stuck . Now with new investors they are completing in 2025. Paid up amount was 73 lacs out of total 83 lacs. Now, escalation cost of 1200/- per sft + tax is demanded by new investor in order to obtain the flat. If ready ,it still seems a good deal since market rate is now more than double.Otherwise , they say they will refund paid up amount minus tax and with no interest at all. I need to decide. Please tell me about Long-term capital gain tax . Is it better to take possession and sell or sell before registration ? Which is more beneficial in terms of tax

Ans: Hi Karthik
It is not possible to get a seat in NIT at this percentile.

Ans: Your current debt of Rs 79 lakh is significant. Selling your first flat could reduce your loan burden by Rs 50 lakh, leaving Rs 29 lakh outstanding. However, decisions should align with long-term goals, affordability, and potential returns.

Here’s a breakdown to help you decide:

Option 1: Sell the Flat and Reduce Debt
Advantages:
Lower Debt Burden: Reduces loans to Rs 29 lakh, significantly decreasing EMI obligations.
Better Cash Flow: Frees up monthly cash for other financial goals or investments.
Reduced Interest Cost: Paying off Rs 50 lakh immediately lowers overall interest payments, saving a substantial amount.
Disadvantages:
Loss of Asset Growth Potential: Real estate prices may appreciate over the years. Selling might mean losing future capital appreciation.
No Rental Income: Selling eliminates the passive income that currently covers your flat’s EMI.
Option 2: Retain Both Properties and Focus on Prepayments
Advantages:
Asset Appreciation: You retain ownership of both properties, benefiting from potential price appreciation over time.
Rental Income: Ongoing rental income can contribute to paying off the flat’s EMI, keeping cash flow stable.
Disadvantages:
High Debt Pressure: Managing a Rs 79 lakh loan requires disciplined budgeting and significant prepayments to reduce interest costs.
Interest Accumulation: Continuing with high debt over the long term increases total interest paid.
Recommended Approach
Selling the Flat May Be Better If:
You prioritise reducing stress from high debt.
You don’t foresee substantial appreciation in the flat’s value.
Clearing a large portion of your debt aligns with your financial comfort.
Retaining the Flat May Be Better If:
You can afford current EMIs and have surplus funds for regular prepayments.
The flat is in a location with strong appreciation potential.
Passive rental income is a key component of your financial plan.
Practical Advice
Evaluate Loan Interest Rates: Check the interest rates for both loans. Prioritise prepaying the one with the highest rate.
Review Budget: Assess whether prepayments are feasible without compromising financial security.
Consider Property Market Trends: Evaluate the appreciation potential of your flat before deciding to sell.
Seek Professional Guidance: A Certified Financial Planner can assess your risk tolerance, long-term goals, and cash flow needs to offer tailored advice.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Dear Revathi,

You are doing so much my dear...take a break from everything for an hour everyday and focus on your well being and peace of mind. 20-20-20 rule for you, meditate for 20 mins, physical activity for 20 mins and connecting with nature for 20 mins( these are your mini breaks).
If you can add 10 mins of an activity which makes your heart joyful then 'sone pe suhaga'!! Self-care comes first, a happy and joyful mother, wife , daughter-in-law is great to have around the house. You are doing so much don't you think you deserve 1 hr for yourself? Without thinking too much , just go ahead and schedule self-care in your time table.

Now let's solve your son's issue...since childhood you have taught him how to do things, he is grown up enough to do things on his own. Until and unless you allow him to do things on his own, how will he learn to do?
DO NOT CHASE...DO NOT CRITICIZE....DO NOT NAG, tell him what to do once and wait for him to do. If he does it fantastic, else let him face the consequences. Every action has to have consequences.. for eg, not studying will lead to less marks, it's his failure, not yours, let him take ownership of his actions, you are preparing him for life, let him falter now and learn to get up. Be there for him when he falls, your job as a mom is to ensure he is healthy...emotionally and physically. (Keep the atmosphere at home happy because you have another son too, he is younger and needs your attention too)
It is his 10th Std, not yours. Keep telling the importance of studies and scoring well and the need to study consistently( again no nagging). He is grown up now, take him to a place without distractions and have heart to heart conversations as a mom and son. Conflicts are neither good for him nor to you/the entire home.
Trust me, parenting is not an easy job, you have to raise yourself, before you raise a child. It is not an easy world for your son too.....raging hormones, conflicting world, conflicting views....the world at the click of a button, you be his rock solid supporter and cheer leader, be there for your sons, create a loving and caring home, where they feel secure and happy. A mother knows best, trust your instinct( the mother's instinct), believe in yourself and your children!!

Wishing the very best to all of you.. and happy parenting!!

Ans: Hello;

If you don't remember your EPF account number and your employer is closed, you can try these options:

1. Check your salary slip: Employers usually include the PF account number on the employee's salary slip.

2. Visit the EPFO office: You can visit the EPFO office with your identity proof and application form to get your PF number.

3.Call the EPFO helpline: You can call the EPFO helpline for information and to track past accounts.

4.Go to the EPFO website: You can fill out some basic information on the EPFO website to locate your dormant account.

Once you get the pf account number you may proceed for offline or online withdrawal of the same.

Best wishes;

Ans: Your portfolio demonstrates a proactive approach to wealth building. It includes diverse mutual funds across categories. Monthly SIPs indicate your long-term financial discipline. This is commendable. However, let’s evaluate its alignment with your financial goals.

Below are detailed insights for your portfolio assessment:

Strengths of Your Portfolio
Diversification

You’ve invested in funds from multiple categories. This includes large-cap, mid-cap, small-cap, flexi-cap, and sectoral funds.
A diversified portfolio reduces overall risk. It balances growth potential across market segments.
Consistency

Monthly SIPs ensure disciplined investments. This helps capture market volatility effectively.
Long-term SIPs can create substantial wealth through compounding.
Exposure to Growth Opportunities

Investments in mid-cap and small-cap funds offer higher growth potential. These funds are suitable for long-term wealth creation.
Sectoral funds provide concentrated exposure to booming sectors like healthcare.
Inclusion of Value and Multicap Funds

Value funds identify undervalued stocks. This can deliver long-term growth.
Multicap funds offer flexibility to invest across market capitalizations.
Areas for Improvement
Overlapping Fund Categories

Having multiple funds in the same category might lead to redundancy. For example, multiple mid-cap and flexi-cap funds.
Similar funds can increase portfolio overlap. This reduces the benefit of diversification.
Sectoral Fund Allocation

Sectoral funds like healthcare have high risk. These funds depend on sector-specific performance.
Such funds should have limited allocation in a balanced portfolio.
Number of Funds

A portfolio with too many funds can be hard to track. It dilutes returns without adding significant diversification.
Fewer funds with distinct strategies are easier to manage and monitor.
Portfolio Insights
Risk Assessment

Your portfolio leans towards high-risk categories like mid-cap and small-cap.
Consider balancing it with funds having stable growth, such as large-cap or flexi-cap.
Goal-Based Allocation

Align investments with specific financial goals. For example, retirement, child’s education, or buying a house.
Define timelines for each goal. Adjust fund categories based on risk tolerance and time horizon.
Taxation Awareness

Equity fund gains above Rs 1.25 lakh are taxed at 12.5%. Short-term gains attract 20% tax.
Ensure to account for these taxes in your investment strategy.
Regular Fund Investment Benefits

Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) offers advantages.

They provide expert insights, fund tracking, and timely rebalancing.

Direct fund investments might lack professional guidance. This could lead to suboptimal decision-making during market volatility.

Suggested Course of Action
Streamline the Portfolio

Reduce the number of overlapping funds. Keep one or two funds per category.
Focus on high-quality funds with a proven track record.
Adjust Sectoral Fund Exposure

Limit sectoral fund exposure to a small percentage of your total investment.
Use these funds only for specific, high-risk goals.
Rebalance Annually

Review your portfolio at least once a year. Rebalance it to maintain desired asset allocation.
Shift funds if they no longer align with your goals or risk tolerance.
Emergency Fund Allocation

Maintain a liquid fund or emergency fund equivalent to 6-12 months of expenses.
This avoids withdrawing SIPs during unexpected financial needs.
Monitor Fund Performance

Regularly review the performance of each fund against its benchmark.
Replace consistently underperforming funds with better alternatives.
Long-Term Discipline

Stick to your SIPs, especially during market downturns. This helps average out costs.
Avoid making decisions based on short-term market fluctuations.
Final Insights
Your portfolio reflects a strong commitment to financial growth. However, streamlining your investments can enhance efficiency and returns. Focusing on goal-based allocation ensures better alignment with your financial objectives.

Consider professional guidance to refine your portfolio and stay on track. This ensures your investments work harder for your future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Good afternoon!!

If you have been in the banking industry for the last 24 yrs, don't you think now is the time to consolidate on your skills and do something which brings out your expertise ? Think of moving up the ladder in your organisation or look for coaching/training people to pass a bank exam or any other subject you love to teach.

And trust me 50 is also an age -
1. when you look back and see all that you have accomplished
2. then look into the future and think about all that you wanted to do and want to do
For you to really look into the two questions above, sit with a quite mind and explore all options , write them down for clarity and for the way forward.

If HR is where you want to go in, then look for an MBA in HR while you are continuing to work( I am very particular about being financially independent too during a career shift or the transition phase)!

If Life coaching is what interests you then check out India's leading life coach Puja Puneet and the courses she offers.
To be a life coach is to work a lot on yourself before you can become one.

Working part-time in my organisation is a "no" right now as I am not hiring!!

All the best in your exploration of the self and the clarity on forward path!!

Ans: Hello;

The simple interest on PFC 54 EC Capital Gain bond is currently 5.25%.

My suggestion is this is a better option then the 7.25% cumulative FD on 4 L after tax payment.

Ultimately it is his choice.

Another option is to utilise provisions of Section 54 of income tax act for seeking exemption by reinvesting LTCG in purchase of another residential property, subject to terms and conditions, but for 5 L ltcg, I do not think this is helpful.

Best wishes;

Ans: To generate a monthly income of Rs 1,00,000 through mutual funds, you need to determine the total investment amount based on the withdrawal rate and expected returns. Here's a detailed analysis:

Key Considerations
Withdrawal Rate

A safe withdrawal rate is around 4–6% annually for sustainable income.
A higher withdrawal rate risks depleting your corpus prematurely.
Investment Returns

Equity mutual funds can give 10–12% annual returns over the long term.
Balanced or hybrid funds may offer 8–10% returns with lower volatility.
Debt mutual funds typically yield 6–8% returns with stable income.
Inflation

Factor in inflation to ensure the corpus lasts through your lifetime.
Taxation

Gains from mutual funds are taxable. This affects your effective returns.
Approximate Corpus Needed
1. Using a 6% Withdrawal Rate
Monthly income required: Rs 1,00,000
Annual income required: Rs 12,00,000
Corpus needed: Rs 12,00,000 ÷ 6% = Rs 2 Crores
2. Using a 4% Withdrawal Rate
Monthly income required: Rs 1,00,000
Annual income required: Rs 12,00,000
Corpus needed: Rs 12,00,000 ÷ 4% = Rs 3 Crores
Recommendations
Invest in Diversified Funds

Allocate your corpus across equity, hybrid, and debt funds.
Equity for growth, debt for stability, and hybrid for balance.
Use SWP (Systematic Withdrawal Plan)

SWP allows you to withdraw a fixed amount monthly.
It ensures steady cash flow without disturbing the investment.
Reassess Periodically

Review returns, inflation, and withdrawal rate annually.
Adjust withdrawal amount to maintain corpus longevity.
Plan for Taxes

Consider the impact of LTCG and STCG taxes on withdrawals.
Equity mutual funds' LTCG above Rs 1.25 lakh is taxed at 12.5%.
Include an Emergency Corpus

Keep 6–12 months’ expenses in a liquid fund.
Avoid dipping into your main corpus for emergencies.
Final Insights
To get Rs 1,00,000 monthly, aim for a corpus of Rs 2–3 crores. Choose mutual funds that align with your risk tolerance and income needs. Start with a Certified Financial Planner to tailor a portfolio for sustainable income.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello;

If you have invested in these funds with long-term horizon then they seem to be inline with your goal and risk appetite.

Continue investing with annual review of performance.

Best wishes;