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Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 02, 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
Asked by Anonymous - May 02, 2024Hindi
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Hi I am working as a chief manager in a psb I will retire in another 8 plus yrs would like to know if I can have opportunities for early retirement. Like In another three plus yrs. Can you suggest if I need to take up any course so that I can get better opportunites out of the bank

Ans: It's excellent that you're thinking ahead about your career and exploring possibilities for early retirement. Taking up courses or certifications can indeed enhance your skill set and open up new opportunities beyond the banking sector.

Consider courses related to finance, leadership, or even entrepreneurship, depending on your interests and long-term goals. Have you thought about networking within your industry or attending seminars and workshops to stay updated with the latest trends and opportunities?

Remember, early retirement is not just about leaving your current job but also about preparing yourself for the next chapter of your life. With careful planning and continuous learning, you can pave the way for a fulfilling and rewarding transition.
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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R P Yadav  | Answer  |Ask -

HR, Workspace Expert - Answered on Feb 23, 2024

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Dear sir,I am compulsory retired from psu, as a senior Manager still I am having 5 years For matured retirement. Is there any jobs available for me?
Ans: As a senior manager with significant experience and five years until mature retirement, you have valuable skills and expertise that can be applied to various job opportunities. Here are some potential avenues to explore:

Industry Consultancy: Consider offering consultancy services in your industry. Your extensive experience can be valuable to companies seeking expertise in areas such as operations management, strategic planning, or process optimization.

Freelancing or Contract Work: Explore opportunities for freelancing or contract work in your field. Many companies, especially startups or smaller businesses, may require temporary support for specific projects or initiatives.

Part-Time or Remote Work: Look for part-time or remote work opportunities that allow for flexibility and work-life balance. Many organizations offer remote positions for experienced professionals, including roles in project management, consulting, or advisory services.

Government or NGO Roles: Investigate opportunities in government agencies or non-governmental organizations (NGOs) where your experience and expertise can be beneficial. These organizations often have positions available in areas such as policy development, program management, or capacity building.

Teaching or Training: Consider sharing your knowledge and expertise by pursuing opportunities in teaching or training roles. Universities, colleges, training institutes, and corporate training departments may seek experienced professionals to teach courses or conduct workshops in your field.

Professional Associations and Networks: Join professional associations and networks related to your industry. These platforms can provide access to job opportunities, networking events, and professional development resources.

Entrepreneurship: Explore the possibility of starting your own business or venture based on your expertise and interests. Entrepreneurship allows you to leverage your experience to create innovative solutions or services within your industry.

Career Counseling and Coaching: With your extensive experience, you could consider a career in counseling or coaching, helping individuals navigate their career paths, develop skills, and achieve their professional goals.

Online Platforms: Utilize online job platforms, networking sites like LinkedIn, and specialized recruitment agencies to explore job opportunities tailored to your skills and experience.

Upskilling and Continuous Learning: Stay updated with industry trends, technologies, and best practices through continuous learning and upskilling. Investing in certifications, attending workshops, or pursuing advanced education can enhance your marketability and open doors to new opportunities.

Remember to tailor your job search approach to your interests, strengths, and career goals. Networking, maintaining a strong online presence, and staying proactive in your job search efforts can significantly increase your chances of finding fulfilling opportunities in your mature retirement phase.

..Read more

Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

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

Money
I am 47 years old with 2 sons 19 and 13. One Collage 2nd year other in 8th standard. My net take home is 2.70 per month. Planning to quit in Sep 2024. No liability for me. I have house valued at 2.4cr, MF and share market value 48!lakhs, PF worth 58 lakhs, NPS 7lakhs, Insurance maturity value at 13lakhs @2025. Jewels worth 38lakhs, FD worth 15 lakhs. Please suggest me whether i can retire early?
Ans: Assessing Your Financial Readiness for Early Retirement
Thank you for sharing your detailed financial situation. It's commendable that you've planned ahead and considered the various aspects of your financial health. Let's analyze whether you can retire early based on your current assets and expected expenses.

Current Financial Position
Assets Overview
House: Rs 2.4 crore
Mutual Funds and Shares: Rs 48 lakhs
Provident Fund (PF): Rs 58 lakhs
National Pension System (NPS): Rs 7 lakhs
Insurance Maturity Value (2025): Rs 13 lakhs
Jewels: Rs 38 lakhs
Fixed Deposit (FD): Rs 15 lakhs
Your total assets amount to Rs 4.19 crore. These are substantial assets, but let's break down their liquidity and utility for retirement planning.

Liabilities
You mentioned you have no liabilities, which is excellent. Being debt-free is a strong foundation for retirement planning.

Future Financial Requirements
Household Expenses
Estimate your monthly expenses post-retirement. Considering a conservative estimate:

Monthly Expenses: Rs 1 lakh (to cover all living costs, including healthcare and leisure)
Children's Education
Your elder son is in college, and the younger one is in 8th standard. Let's allocate funds for their remaining education:

Elder Son's Education: Assuming Rs 10 lakhs for the remaining college years.
Younger Son's Education: Assuming Rs 15 lakhs for school and Rs 20 lakhs for college.
Total estimated education costs: Rs 45 lakhs.

Emergency Fund
Maintain an emergency fund covering 12 months of expenses:

Emergency Fund: Rs 12 lakhs
Calculating Required Corpus
To determine if you can retire early, we need to calculate the corpus required to sustain your lifestyle and meet your goals.

Monthly Expenses and Inflation
Assume an annual inflation rate of 6% and a life expectancy of 85 years. You plan to retire at 48, so we need to cover 37 years.

Using a simplified approach, the future value of monthly expenses considering inflation over 37 years is:

Future Value = Present Value * (1 + inflation rate)^(number of years)

Annual Expenses: Rs 12 lakhs

Future Annual Expenses = Rs 12 lakhs * (1.06)^37 = Rs 1.12 crore (approx.)

Now, calculating the corpus needed to generate this income annually, assuming a conservative return of 7% post-retirement:

Required Corpus = Future Annual Expenses / Withdrawal Rate

Withdrawal Rate = 4% (a common safe withdrawal rate for retirement planning)

Required Corpus = Rs 1.12 crore / 0.04 = Rs 28 crore

Evaluating Your Assets
Liquid Assets
Mutual Funds and Shares: Rs 48 lakhs
Provident Fund (PF): Rs 58 lakhs
National Pension System (NPS): Rs 7 lakhs
Fixed Deposit (FD): Rs 15 lakhs
Insurance Maturity Value (2025): Rs 13 lakhs
Total Liquid Assets: Rs 1.41 crore

Non-Liquid Assets
House: Rs 2.4 crore (Can generate rental income if not sold)
Jewels: Rs 38 lakhs
Total Non-Liquid Assets: Rs 2.78 crore

Rental Income from Property
Assuming you rent out your house, which can generate a conservative rental yield of 3%:

Annual Rental Income = Rs 2.4 crore * 0.03 = Rs 7.2 lakhs

Creating an Income Stream
Investment Strategy
To ensure a stable income, diversify your investments across different asset classes. Here's a suggested allocation:

Equity Mutual Funds: Continue investing for growth.
Debt Funds/FDs: Provide stability and regular income.
NPS: Offers regular annuity post-retirement.
Rental Income: Adds a steady income stream.
Income Generation
Rental Income: Rs 7.2 lakhs per year
Equity and Debt Investments: Generate around 7% return
Total Annual Income Required: Rs 12 lakhs (adjusted for inflation over the years)

Managing Investments and Withdrawals
Regular Monitoring
Regularly monitor and adjust your investments to ensure they align with your goals and market conditions.

Withdrawal Strategy
Follow a systematic withdrawal strategy to ensure your corpus lasts throughout your retirement. A mix of fixed deposits and mutual funds can provide both liquidity and growth.

Importance of a Certified Financial Planner
While the above analysis provides a general guideline, consulting a Certified Financial Planner (CFP) is crucial. A CFP can offer tailored advice based on your specific situation, goals, and risk tolerance. They can help you optimize your investment strategy, manage risks, and ensure a smooth transition into retirement.

Systematic Withdrawal Plan (SWP)
A Systematic Withdrawal Plan (SWP) can be an effective way to manage your retirement funds. It allows you to withdraw a fixed amount regularly from your mutual fund investments. This provides a steady income stream and helps in managing cash flow efficiently.

Benefits of SWP
Regular Income: Ensures a steady flow of funds to meet your monthly expenses.
Tax Efficiency: Only the capital gains part of the withdrawal is taxable, making it more tax-efficient than other forms of income.
Capital Preservation: Helps in preserving the capital while providing regular income.
Flexibility: You can adjust the withdrawal amount as per your changing needs.
Implementing SWP
To implement SWP, identify the mutual funds that align with your risk profile and financial goals. Work with your CFP to set up a withdrawal schedule that ensures your corpus lasts throughout your retirement.

Healthcare and Insurance
Ensure you have adequate health insurance coverage. Healthcare costs can be significant, and having comprehensive insurance will protect your corpus.

Contingency Planning
Life can be unpredictable. Having a robust contingency plan ensures that unforeseen expenses do not derail your financial stability. This includes:

Emergency Fund: Rs 12 lakhs
Contingency Plans for Healthcare: Adequate insurance coverage and an additional healthcare fund.
Final Insights
Based on your current financial position and careful planning, retiring early in September 2024 seems feasible. With a strategic approach to managing and investing your assets, you can ensure a stable and comfortable retirement. Focus on generating steady income through diversified investments, rental income, and systematic withdrawals.

Your disciplined financial planning has provided a solid foundation. Regularly review your financial plan and adjust it as needed to stay on track. Consulting a Certified Financial Planner will provide you with the professional guidance needed to navigate the complexities of retirement planning.

Enjoy your retirement with peace of mind, knowing you've planned well for your future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 31, 2025

Asked by Anonymous - Jul 31, 2025Hindi
Money
Sir, I'm 51 years old. I'm currently working in private organisation with 30 LPA. I don't have children. My current financial position is as follows. PF - 65 lakhs A own house - loan cleared. I don't have any loans or commitments. A open plot worth 40 lakhs. 15 lakh bank balance. SIP - 5 lakhs Rental income of 30000 per month. Farm land 5 acres worth 6 crores. Please advice as I was planning to retire at the age of 60. My self and my wife are fully fit and have no health problems as of now.
Ans: You have built a solid base. Your discipline and clarity deserve sincere appreciation.

At 51, with no financial dependents and no liabilities, your position is strong. Your current income, assets, and investments indicate a clear path to retire comfortably at 60. Let’s evaluate and guide you from all possible angles.

? Income and Employment Overview

– You are earning Rs. 30 lakh per annum from your job.
– Rental income adds Rs. 30,000 per month.
– No loans or EMI burden is a big plus.
– You have 9 more working years before retirement.
– Health is stable for you and your wife. This is important.

Your focus should now shift towards capital protection, inflation-proof retirement income, and creating flexibility in future choices.

? Provident Fund Assessment

– Rs. 65 lakh PF corpus is already a great achievement.
– Continue monthly PF contributions until retirement.
– This corpus can grow significantly in 9 years.
– It will form the backbone of your retirement income.
– After retirement, you may use part of PF for SWP or annuity-type withdrawals, but not annuity products.

? Bank Balance Review

– You hold Rs. 15 lakh in bank balance.
– Maintain Rs. 5 to 7 lakh as emergency fund.
– Remaining balance should be parked in liquid or arbitrage funds.
– This helps earn better returns than regular savings.

Idle cash leads to value erosion due to inflation. Keep it optimised.

? SIP and Mutual Fund Investment Analysis

– Rs. 5 lakh corpus in mutual fund SIPs is modest.
– Continue investing every month in diversified equity funds.
– Target Rs. 50,000 to Rs. 70,000 per month SIP till retirement.
– Step up your SIP by 10% annually.
– Your MF portfolio should be mix of large-cap, flexi-cap, and mid-cap.
– Add conservative hybrid or dynamic funds after age 55.
– This builds stability and lowers volatility.

Stay invested via regular plans through a Certified Financial Planner (CFP) and not direct plans.

Direct plans miss out on expert advice and portfolio review support.
Regular plans via CFP ensure handholding, rebalancing, and strategy alignment.

Also, avoid index funds.

Index funds mirror the market. They don’t beat it.
No flexibility in changing allocations based on market cycles.
Actively managed funds offer fund manager expertise and better risk control.

? Rental Income Role in Retirement

– Rs. 30,000/month rental is a good supplementary income.
– It adds Rs. 3.6 lakh yearly without risk.
– Even if post-retirement you stop working, this income continues.
– Use it as a buffer for medical expenses or lifestyle needs.

Ensure the property is well-maintained. Consider succession planning early.

? Real Estate Asset Review

– You own a residential house (loan-free).
– You own a plot worth Rs. 40 lakh.
– You also own 5 acres of farm land valued at Rs. 6 crore.

Though these are valuable, do not rely on real estate for income generation or liquidity.
As a policy, real estate is not a recommended investment instrument.

Real estate has illiquidity, high maintenance, and poor transparency.
Retirement income needs steady and easy-to-access cash flows.

You may consider partial monetisation of either plot or farmland after age 58, only if needed.

Until then, let these remain wealth reservoirs, not income engines.

? Health Insurance Coverage

– You and your wife are currently healthy.
– But medical inflation is high.

You must have the following in place:

– One family floater health insurance policy of minimum Rs. 15–20 lakh.
– Top-up policy of Rs. 25 lakh if base policy is low.
– Critical illness cover for both spouses.
– Rs. 5–7 lakh health emergency fund.

Check existing cover from employer. Buy a standalone policy now.
After retirement, premiums shoot up. It’s harder to get approval too.

? Retirement Planning Strategy

Your target retirement age is 60. That gives 9 more years.

Key goals during this phase:

– Grow corpus steadily and safely.
– Build equity-debt balanced portfolio.
– Keep risk moderate.
– Ensure liquidity at all times.
– Avoid locking funds in long-term products.
– Never chase high returns with risky products.

Post retirement, build your income stream using:

– SWP from mutual funds.
– Partial withdrawals from EPF and PPF.
– Rental income.
– Farm income if managed well.
– Use debt mutual funds for parking money safely.

Make sure to avoid:

– Annuities
– ULIPs
– Endowment policies
– Real estate investments
– Index or direct plans

If you hold any LIC, ULIP or combo investment-insurance policies, you should surrender them and shift to mutual funds via a CFP.
They give poor returns, low transparency, and poor liquidity.

? Tax Planning and Capital Gains Strategy

– Post 2025, MF taxation has changed.
– Equity MF:

LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG taxed at 20%.
– Debt MF:

LTCG and STCG both taxed as per your slab.

Plan redemptions accordingly after retirement.
Stagger withdrawals using SWP route to lower tax impact.

Continue tax-saving till retirement using:

– EPF, PPF, SIP in ELSS if needed.
– NPS if you want additional tax shield.
– Health insurance premium and standard deductions.

Avoid aggressive tax-saving schemes. Simplicity matters more now.

? Lifestyle Planning and Retirement Readiness

– Decide your expected lifestyle post-retirement.
– Estimate monthly expense today and inflate it by 6–7% yearly.
– Include travel, wellness, gifts, maintenance, contingencies.
– Don’t plan a frugal lifestyle. Keep some leisure fund.
– Try living on your estimated post-retirement income for 3–6 months.

This will help you validate your corpus needs and comfort zone.

? Estate Planning and Succession Clarity

– Since you have no children, plan succession early.
– Draft a registered Will for all properties and investments.
– Assign trusted nominee for all accounts and policies.
– Use joint ownerships to avoid legal issues.
– Keep your spouse aware of all investments, passwords, and financial contacts.

Nomination is not ownership. Will supersedes all. So don’t delay.

? Risk Management and Portfolio Review

– Avoid high-risk investments now.
– Don’t experiment with PMS, unregulated products, or fancy tax schemes.
– Stick to a well-diversified mutual fund portfolio.
– Maintain 60:40 ratio of equity and debt from age 55.
– Monitor the portfolio at least twice a year.

Involve a Certified Financial Planner (CFP) for regular reviews.
This ensures asset allocation is aligned with age and goals.
They also help you rebalance and switch tactically.

? Final Insights

– Your foundation is strong and well-prepared.
– You have no debt and ample assets.
– Just focus on disciplined investing and avoiding risky decisions.
– Allocate savings wisely across mutual funds and fixed instruments.
– Protect health and legacy with insurance and a Will.
– Your goal to retire at 60 is 100% achievable with the current plan.

A few tweaks and regular reviews will secure your financial freedom.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 31, 2025

Asked by Anonymous - Jul 31, 2025Hindi
Money
Hello Sir, I require some serious advice/suggestions on my below goal planning. I am currently 37 and planning to buy a flat after 4-5 years whose approximate cost will be 75-80 Lacs. I intend to make 30 lacs as a down-payment and rest loan. I have the current investments monthly as below with take home salary of 1.03 lacs 1. SIP of 30k per month, total corpus 21 Lacs as on date ongoing for the last 6-7 years 2. Stocks of 4 Lacs corpus as on date (not monthly, lump sum, invested 2.40 lacs running for 5 years) 3. PPF 3k per month 4. RD of 5k per month 5. NPS of 3k per month 6. Emergency fund building 3k per month I left with two choices. (A) Current MF corpus can grow up to 55-60 lacs after 4-5 years which is 21 lacs as on date (assuming) with SIP of 30k monthly and 10% annual step-up. Withdraw 25-30 lacs from that MF corpus after 4-5 years for home down payment and continue investing with balance corpus and further SIP's. (B) Create a separate dedicated folio with MF's in goal name as home down payment, stop current 10k SIP out of 30k running and shift that 10k in the separate dedicated folio for home down payment. Balance 20k can be continued for the long term. If 5k futher investment can be done (very difficult), then in the separate folio total 15k (10k+5k additional) SIP which can generate 10-13 lacs after 5 years. Remaining 15-20 lacs can be withdrawn from current MF corpus. But I assume stopping running SIP's in old folio and opening new folio in same AMC and fresh investment will disturb compounding returns. Now the question is - WHICH OPTION IS MORE SUITABLE OR BETTER AND WHY? Please advise.
Ans: You’ve shown very good clarity in your financial planning. Creating a roadmap for a major goal like home purchase is a smart step. You’ve already built a solid foundation with ongoing SIPs and disciplined savings. Your dilemma between Option A and Option B is genuine. Let’s evaluate both from a 360-degree view.

Assessment of Current Financial Position

– Age: 37. You have 4–5 years to reach your home goal.
– Monthly income: Rs. 1.03 lakh (after tax).
– SIP: Rs. 30,000 monthly, total corpus Rs. 21 lakh.
– Stocks: Rs. 4 lakh corpus from Rs. 2.4 lakh invested.
– PPF: Rs. 3,000 monthly.
– RD: Rs. 5,000 monthly.
– NPS: Rs. 3,000 monthly.
– Emergency fund: Rs. 3,000 monthly.

You are investing nearly 45% of your take-home salary. This reflects good financial discipline. Your portfolio is diversified across equity, debt, and retirement instruments.

Evaluation of Goal and Timeline

– Goal: Home purchase after 4–5 years.
– Approximate cost: Rs. 75–80 lakh.
– Down payment plan: Rs. 30 lakh.
– Balance through home loan.

Since your time horizon is medium-term (4–5 years), asset allocation needs some rethinking. Equity may not suit 100% of this horizon.

Understanding Option A

– Continue current SIP of Rs. 30,000.
– Allow corpus to grow from Rs. 21 lakh to approx. Rs. 55–60 lakh.
– Withdraw Rs. 25–30 lakh after 5 years for home down payment.
– Continue SIPs and retain balance for long-term wealth creation.

Pros of Option A

– Simplicity. No change in investment pattern.
– Compounding remains uninterrupted in original folios.
– All gains consolidated under one portfolio.
– Lesser paperwork. Easy tracking.
– Suitable if you are confident in managing portfolio mentally for multiple goals.

Cons of Option A

– No earmarked folio for home goal.
– Emotional detachment may be difficult.
– Temptation to dip into entire corpus at once.
– Risk of equity volatility close to goal year.
– No tactical rebalancing as goal nears.

Understanding Option B

– Shift Rs. 10,000 of SIP to a new folio for home down payment.
– Try to increase by Rs. 5,000 more to make it Rs. 15,000 monthly.
– Expected corpus in 5 years from this new SIP: Rs. 10–13 lakh.
– Withdraw balance Rs. 15–20 lakh from existing corpus.
– Retain Rs. 20,000 SIP for long-term corpus.

Pros of Option B

– Clear mental demarcation of goals.
– Dedicated folio for house funding improves discipline.
– Easier to manage asset allocation specific to goal.
– Flexibility to invest conservatively as goal nears.
– Reduces risk of overexposing entire corpus to short-term goal.

Cons of Option B

– Reduces current SIP in wealth-building folio.
– New folio restarts compounding afresh.
– Lower corpus growth due to shorter SIP period.
– Emotional discomfort of stopping old SIPs.

Your Concern About Disturbing Compounding

This is a valid thought. However, compounding is not lost. You are just creating a new stream. Your past investment continues to compound. You are only pausing one SIP and redirecting it to a new folio. That doesn't kill compounding. It simply builds two separate ladders instead of one.

Your concern shows your long-term commitment. That’s admirable.

Suitability Based on Risk, Behaviour, and Psychology

If you are emotionally strong and can keep your hands off the corpus, Option A works.

If you need visual goal-segregation and behavioural discipline, Option B is safer.

If your job is stable and income expected to grow, Option B gives better flexibility.

If cashflow is tight, Option A avoids additional mental burden.

Ideal Strategy (Hybrid of A and B)

You don’t have to pick A or B 100%. A hybrid plan suits better.

– Keep Rs. 20,000 SIP in original folio for long term.
– Redirect Rs. 10,000 to a new goal folio.
– Increase it to Rs. 12,000–13,000 when bonuses or increments come.
– This helps build Rs. 10–12 lakh in 5 years in new folio.
– You can withdraw remaining from your main folio.
– One year before purchase, shift goal folio to conservative hybrid or short-duration debt funds.
– This reduces market risk near goal year.

Important Point: Asset Allocation As Goal Nears

Equity is not ideal for goals due within 3 years. You should gradually reduce equity exposure in your home goal folio:

– Till 3 years: keep 100% equity.
– 2 years: shift 30–50% to conservative hybrid.
– Final year: move majority to liquid or short-term debt.

This ensures corpus safety. Otherwise, market fall in goal year can affect down payment capacity.

Disadvantage of Direct Mutual Funds

Since you haven’t asked specifically, a gentle reminder:

– Avoid direct plans if you lack professional knowledge.
– Regular funds via an MFD with CFP qualification bring expert support.
– Regular plans include portfolio rebalancing, goal review, emotional support during market downturn.
– In goal-oriented planning, advisor intervention helps reduce costly mistakes.
– The cost difference is marginal compared to the value of guidance and discipline.

Additional Suggestions for Smooth Execution

– Don’t disturb your emergency fund. Continue Rs. 3,000 monthly.
– Ensure 6–8 months’ expenses are covered.
– Don’t compromise PPF and NPS. These are long-term retirement tools.
– Review stock portfolio. Avoid overlap with mutual funds.
– Don’t withdraw stock corpus for home down payment unless necessary.

Tax Planning for Mutual Fund Withdrawals

– For equity mutual funds, STCG is taxed at 20%.
– LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Plan redemptions across financial years to reduce tax outgo.
– Avoid bulk withdrawal in one go. Spread over 2 financial years if possible.
– Keep proof of SIP dates to calculate exact taxation.

Loan Planning and Credit Discipline

– Keep credit score high. Don’t default on any dues.
– Avoid unnecessary loans before home loan application.
– Check your home loan eligibility beforehand.
– Go for a tenure you can manage. Don’t stretch to 25–30 years.
– Maintain your MF corpus to help with pre-closure later.

Finally

– You are on the right track. Both options have merit.
– Option B gives discipline. Option A gives compounding.
– Hybrid method is most effective.
– Continue SIPs, segregate goals, de-risk near target year.
– Track portfolio quarterly. Review annually.
– Seek guidance from a CFP if needed for fund review.
– With your discipline and plan, owning a home is achievable with peace.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |10017 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 31, 2025

Money
Hello sir I am a 19 years old boy. 6 months ago me and my friend started a business. We took a loan of 3 lakhs from personal people with 3% interest. It's been already 6 months and we can't repay his loan. And he have given us just now 2 days time. What should we do. We apply loan in the bank but they declined by saying that there are not sufficient documents and monthly income. If we can't repay our loan in 2 days then he will destroy our future . Please sir what should I do please guide me.
Ans: Starting a business at 19 is a brave step. You’ve shown courage and action. That is a strong quality. You’ve already done something many people only think about. So please take heart. Even though things are tough now, this is not the end. It can still turn around with the right actions. Let us approach the situation step by step.

Talk Openly and Calmly with the Lender

– Please meet the person who gave the loan.

– Be respectful, but explain your real situation.

– Tell him you want to repay but need time.

– Assure him of your commitment and honesty.

– You can request a revised timeline for repayment.

– Suggest small monthly payments till business picks up.

– If possible, make a part payment of Rs. 10,000 or Rs. 20,000 now.

– That small gesture will show your intention to repay.

– Many lenders become flexible when they see honesty and effort.

Do Not Run Away or Avoid the Lender

– Skipping communication makes the lender more angry.

– That can lead to threats or even complaints.

– It also damages your personal reputation.

– Please show up and take responsibility.

– You may feel pressure, but facing it is the brave step.

Explore Support from Family or Known Circles

– This is not the time for ego.

– Request help from family members or close relatives.

– Explain everything honestly. Don’t hide anything.

– They may not give full amount, but something is better than nothing.

– Even Rs. 50,000 can help you calm the lender temporarily.

– Friends or ex-colleagues can also offer temporary support.

– Offer to pay them back monthly with proper plan.

Try to Raise Funds from Business Customers

– Look at your business: Can you collect dues from any clients?

– Offer them discounts for early payments.

– Can you sell some stock at lower price to get quick cash?

– Even a quick sale at loss is better than loan damage.

– Cash flow matters now more than profits.

– Try all small ways to raise at least part of the amount.

Avoid Personal Loans or Credit Cards for Now

– You already got rejected by banks. That’s okay.

– Don’t go to loan apps or high-interest private lenders.

– Many charge more than 36% yearly. That’s dangerous.

– It will only increase your stress and ruin your credit score.

– Focus on real income, not more loans.

List Down All Personal Assets

– Do you have a scooter, phone, gadgets, or any asset?

– Can you sell or pledge it temporarily?

– Even Rs. 30,000 from old items can reduce lender pressure.

– This step may feel painful, but it buys you time and safety.

– Remember, assets can be bought again later.

Offer Work or Partnership to the Lender

– This may sound strange, but consider it.

– If the lender is business-minded, offer him a profit-sharing model.

– Show him your business plan and what you’re trying to build.

– Offer him part of future profits if he agrees to wait for repayment.

– He may agree if he sees potential and your honesty.

Keep the Business Alive, But Cut Costs

– Don’t shut the business out of fear. It can still work.

– Cut all expenses to bare minimum. Every rupee matters.

– Don’t take salary now. Keep focus on survival.

– Track every paisa. Treat it like gold.

– Make a short-term goal of breaking even monthly.

– Slowly you can repay all if the business becomes stable.

Build Credibility with Documentation

– Though banks denied loans, don’t lose hope.

– Start documenting your business from now.

– Keep income records, bills, client receipts.

– Register the business if not done already.

– Open a current account for the business.

– This builds a strong base to apply for loans later.

Learn from the Mistake, but Don’t Quit

– Taking unplanned loans without backup is risky. You now know that.

– This will teach you financial discipline.

– But don’t lose confidence. Many big business owners failed once.

– Learning early in life is a blessing.

– Success is not about avoiding failure, but learning fast from it.

Avoid Wrong Advice and Quick Fixes

– Some people may advise you to take another loan to repay this one.

– Or some may say run away or avoid the lender.

– These are temporary escapes. You will suffer more later.

– Stay on honest path. You are young and can rebuild quickly.

Start Personal Budgeting Immediately

– Track your personal expenses from today.

– Cut all luxuries or non-essentials.

– Save every rupee possible.

– Use savings to repay the lender slowly if he agrees.

– Start small SIP in mutual funds once your base is strong.

In Future, Build Emergency Fund First

– After recovery, keep at least 3 months’ expenses saved.

– This will protect you in business down periods.

– Never invest or start a venture without this safety net.

Don’t Mix Insurance with Investment

– If you ever bought ULIPs or LIC endowment policies, review them.

– They usually give low returns and high charges.

– If you have such policies, surrender them after checking terms.

– Invest that money in mutual funds through CFP-guided MFDs.

– Avoid investment-cum-insurance plans in future.

Avoid Direct Mutual Funds Without Guidance

– Direct plans may look cheaper but lack human guidance.

– As a beginner, wrong fund choice or wrong timing can hurt.

– Regular plans through MFDs guided by Certified Financial Planners give better handholding.

– They also track your progress and guide in tough times.

Why Actively Managed Funds Are Better

– Index funds just copy the market.

– They don’t adapt to market changes or risks.

– In falling markets, they give full downside.

– Actively managed funds have skilled managers.

– They can reduce risk and find better opportunities.

– Over time, they can give better returns if chosen wisely.

Think Long Term, but Act Fast Today

– Your immediate goal is to calm the lender.

– Next step is to cut business losses and build income.

– Then create a 1-year, 3-year and 5-year financial roadmap.

– You are only 19. You can bounce back better and stronger.

Finally

– Appreciate your courage to reach out and share the issue.

– Many stay silent and make it worse. You did the right thing.

– Take one step at a time. Start today.

– This challenge is just a chapter, not the end.

– You have time, energy and courage on your side.

– Use this moment to build financial maturity.

– One right action now can save your next 10 years.

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

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Nayagam P

Nayagam P P  |9737 Answers  |Ask -

Career Counsellor - Answered on Jul 31, 2025

Career
Good morning sir. My son got seat in CSE in UOH(University of Hyderabad] by josaa.He may get seat EEE in NIT Surathkal HS by CSAB. We are confused what to choose.Kindly help in this and advise
Ans: Srikanth Sir, Your son’s choice is between CSE at University of Hyderabad (UOH) and EEE at NIT Surathkal, two distinguished institutes with differing but strong academic profiles and placement records. UOH is NAAC accredited and recognized as an Institution of Eminence, excelling in postgraduate and integrated M.Tech. programs, notably in Computer Science. The university boasts state-of-the-art infrastructure, rigorous industry-linked curriculum, and notable collaborations with leading national and international organizations. However, while the CSE program equips students with strong technical and analytical skills, recent placement data indicates annual placement rates in computing rarely exceed 80%, with the highest offers going to a select cohort; around 18 out of 20 integrated M.Tech. CSE students were placed last cycle, with median offers in the moderate range and many graduates pursuing higher studies or research.

NIT Surathkal, an Institute of National Importance ranked among India’s top 50 by NIRF, is renowned for its robust undergraduate B.Tech. programs and has received AICTE and NBA accreditations for all major engineering branches. The EEE department features experienced faculty, strong infrastructure, advanced labs, and coursework covering current trends in electrification, automation, and embedded systems. NIT Surathkal’s placement cell is consistently among the nation’s best, with EEE achieving placement rates above 90% in the past three years and average offers that outpace most comparable government colleges. The campus’s strategic coastal location near Mangalore ensures excellent industry exposure, and recruiters span core engineering, analytics, product, and consultancy firms. The vibrant, diverse student community and expansive residential campus foster both academic and holistic growth.

RECOMMENDATION: Choose NIT Surathkal EEE if your son seeks a highly respected national brand, strong placements across core and technology roles, and a comprehensive campus experience. Opt for UOH CSE if he is deeply interested in computer science research and values smaller, academically rigorous cohorts with a focus on postgraduate and integrated learning. For broader industry opportunities, robust infrastructure, and a future-proof degree, NIT Surathkal EEE stands out as the stronger long-term option. Just My Suggestion: Prefer NIT-S-EEE, if he gets through CSAB. Retain UOH-CSE Seat and know its Refund Policy if you withdraw the seat for NIT-S-EEE. All the BEST for Your Son's Prosperous Future!

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Nayagam P

Nayagam P P  |9737 Answers  |Ask -

Career Counsellor - Answered on Jul 31, 2025

Career
sir in 97.3 percentile in mhcet open category is it possible to get admission in tier 1 college in pune and mumbai .....and what about mit wpu if not got the admission. also the placement of mit wpu thanks
Ans: With a 97.3 percentile in MHT CET (Open Category, Maharashtra domicile), your estimated rank lies between 8,100 and 9,450, making you highly competitive for several reputed engineering colleges in Pune and Mumbai, though not for the most selective branches at COEP, VJTI, or ICT, where cutoffs for CSE and top branches typically close above the 99.9 percentile. However, you have strong admission chances for CSE, IT, and ECE (the three most in-demand branches) at numerous top private and autonomous institutes. The 15 colleges where admission is virtually assured for these branches at your percentile are: MIT World Peace University (MIT-WPU), Pune. Dr. Vishwanath Karad MIT Academy of Engineering, Pune. Bharati Vidyapeeth Deemed University College of Engineering, Pune. Vishwakarma Institute of Technology (VIT), Pune. Rajarshi Shahu College of Engineering, Pune. Sinhgad College of Engineering, Pune. JSPM’s RSCOE (Bhivarabai Sawant Institute), Pune. PCCOE, Nigdi, Pune. D. Y. Patil College of Engineering, Akurdi, Pune (if it accepts MHT-CET Score this year). Vidyalankar Institute of Technology, Mumbai. Sardar Patel Institute of Technology (SPIT), Mumbai (for IT/ECE, but not core CSE). Thadomal Shahani Engineering College (TSEC), Mumbai. Ramrao Adik Institute of Technology, Navi Mumbai. Xavier Institute of Engineering, Mumbai. Fr. Conceicao Rodrigues Institute of Technology (CRIT), Mumbai. These institutes offer robust AICTE/NAAC accreditations, strong infrastructure, modern labs, industry linkage, experienced faculty, and transparent placement cells. Placement rates in these colleges for the top three branches normally range from 80% to 97%, with top recruiters being TCS, Infosys, Capgemini, Cognizant, JPMorgan, and several product firms. Hostel facilities, active campus life, and alumni support make them attractive choices for comprehensive development.

MIT-WPU Review & Placements:
MIT-WPU Pune, a NAAC-accredited autonomous university, is known for its industry-driven curriculum, advanced facilities, and strong placement ecosystem. Over the last three years, placement rates for engineering consistently hovered between 80% and 90% for top branches, with the highest packages reaching ?51.36 LPA and the average package rising to ?7–16 LPA. Leading companies like Microsoft, Amazon, Barclays, Infosys, and TCS recruit heavily from campus. Faculty are industry-trained and supportive, and the modern campus offers enriching academic, extracurricular, and innovation opportunities, making it a rewarding destination for aspiring engineers.

Final Recommendation:
Top five choices in order of preference are MIT-WPU Pune, Vishwakarma Institute of Technology Pune, Bharati Vidyapeeth College of Engineering Pune, Rajarshi Shahu College of Engineering Pune, and Vidyalankar Institute of Technology Mumbai. MIT-WPU leads for its placement record, contemporary curriculum, world-class infrastructure, and national reputation. VIT Pune boasts top-tier CSE/IT/ECE placements and academic excellence, while Bharati Vidyapeeth and RSCOE combine holistic growth and reliable placement support. Vidyalankar excels in Mumbai for its IT/CS programs, strong peer learning, and consistent placements. All five colleges deliver quality education, industry exposure, and comprehensive student development, making them highly recommended for your percentile and branch preference. All the BEST for a Prosperous Future!

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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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