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Anu Krishna  |857 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 12, 2024

Anu Krishna is a mind coach and relationship expert.
The co-founder of Unfear Changemakers LLP, she has received her neuro linguistic programming training from National Federation of NeuroLinguistic Programming, USA, and her energy work specialisation from the Institute for Inner Studies, Manila.
She is an executive member of the Indian Association of Adolescent Health.... more
Asked by Anonymous - Feb 04, 2024Hindi
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Relationship

Hi Anu , I am 40 old male. There is a 32 year single mother in my office who is going through a turmoil in her personal life. Our office has been graciously enough to help her in whatever way possible. At times, she started talking to me about her personal issues and problems which I heard from her thinking she might need to just vent out. Also she has asked me some financial help which I helped and she is repaying me. But the problem started she has started leaning on me professionally for everything which I dont mind since being a lead I have to help her, but now, she randomly pings and calls and talks about her inlaws and husband. At times, i feel that i cannot be talking all the time about her personal life and have to maintain a professional relationship. I dont know how to make her understand that even i have a personal life and i cannot help her all the time...She is a very good friend but i want to respect my boundaries.

Ans: Dear Anonymous,
Boundaries please...if you want to respect your own boundaries, why did you compromise on them in the first place? Also, being a Lead, I am sure that you are aware of overstepping your professional area and moving into personal spaces. It can work very well against you and you know that. So, please be clear to her what is okay and what your boundaries are...
Stick to your professional matters and end it at that...

All the best!

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Anu

Anu Krishna  |857 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 17, 2023

Asked by Anonymous - Oct 07, 2023Hindi
Relationship
Greetings, Anu. I am a 50-year-old married man in a relationship with a married woman 17 years my junior. She is exceptionally gorgeous and intelligent, and we were both colleagues until she changed jobs a few days ago. I had introduced her to my boss and my mentor, who work in a different organisation. After a while, I found she was constantly talking and discussing him with me, and my senoir was constantly inquiring about her whenever I went to meet him. I began to suspect, and one day I abruptly asked my partner what was up with her. She wasn't prepared for the query, and the first thing out of her mouth was the name of my senior, despite the fact that I had asked or said nothing about him. She tried to right herself and began explaining that she had received his texts complimenting her appearance and discussing her profession. I asked how often they exchanged messages, and she said once or twice a month. I begged her to desist from doing so in the future. But I tracked her and discovered that they were both online for over 14 to 18 hours every day, and their online times were almost identical to the extent of seconds, if not minutesAs she is a teacher, I asked for her weekly schedule so that I could contact her anytime she was available, which she provided. However, I discovered that both were online throughout her class hour. When I questioned her, she stated that her schedule had altered. I saw both of them online till the early hours of the morning from a different phone that had their numbers, and they had that number recorded in the other phone I was tracking them with. I started interrogating her directly one day and asked her how much time she spent chatting with him everyday, and she responded anywhere between 10 and 30 minutes, once or twice a week. I asked for her phone and discovered that all of her messages had been deleted. When I asked her what she talked about practically every day with him, she responded academics. I tried to ask her a few questions, and she gradually began to open up as she felt imprisoned after every other question she had replied. She admitted that my senior was speaking with her and that he frequently complimented her on her appearance and discussed a variety of other topics. She also argued with me about what was wrong with being online and conversing with someone. She stated that she thought my senior was a kind person. I asked her how she felt about him, and she avoided answering by chatting about unimportant stuff. I stopped communicating with her and responding to her texts. She didn't contact or text me on the first day, either, but on the third day, she began sending me love messages and beseeching me to respond. I persuaded myself into it, but she continued speaking with my senior all day and till past midnight, as I could see both online, even after she had blocked my number with another number I had taken from her good buddy. She attempted to persuade me, and I consented. I could tell that she maintained her friendship with my senior, and she frequently neglected to respond to my messages, even though she was spotted online long after I had sent them to her. I returned to her and we had a discussion about the same topic before I stopped talking to her. She did not message or phone me for two days, but on the third day she called and I had to pick up because something extremely important had to be discussed in another topicAfter that matter was discussed, I ended the call, and she began to send me love pictures and love messages again, as well as saying she wanted to talk to me and that I should not behave like this, at least with her. I agreed and dialled her number. She argued with me, accusing me of not believing her. I told her to keep away from my senior and that I shouldn't see her online with him anymore. She agreed, and I saw she wasn't online anymore, despite the fact that my senior was. This caused me to reconsider, and I discovered that she had applied for a new phone number and acquired a new phone two days prior. I asked her, and she refused, but the source from whom I learned was certain because my partner had asked her for a decent shop for mobiles as well as the network for the new phone. Madam , I had asked her several times what she talked about with him for hours every day, but she never answered, and now that she has a new phone, I know why....What should I do????
Ans: Dear Anonymous,
What you should do is to move on with your life which is getting impossible with you monitoring her every move.
Your peace of mind is gone and she isn't required to give you the explanations that you seek...she has the freedom as much as you do to speak with anyone that she chooses...so why are you so stuck on this?

Is it love and also both of you are married...(this is not to judge either of you...) but where there is no commitment, there is no reason to get possessive or demand explanations. The same goes for her as well in case she starts to stalk you and gets on your case...

So, now let her be and befriend who she wants to...there is no way that you can stop her...so simply get on with your life...there are better things to do than run around chasing someone who is chasing someone else...

All the best!

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Ravi

Ravi Mittal  |191 Answers  |Ask -

Dating, Relationships Expert - Answered on May 06, 2024

Asked by Anonymous - Apr 30, 2024Hindi
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Relationship
To start with I am in my early sixties . We have a large WhatsApp group of undergraduate college batchmates where sometimes news about batchmates / their families get posted . A married lady batchmate, located in one of the metro cities reached out to me over phone to offer her condolences / sympathies for loss of a family member that I had suffered . While I didn't personally know the lady , found the gesture empathetic & touching . So when the next physical batch meet took place I sought her out to thank her and we chatted for some time too ! Subsequently , we started being in touch , she mentioned that she found my gesture ( asking her to sit besides me to chat up very affectionate ) both through chat and calls and started sharing about each other , even personal matters . And now it seems that the relationship is moving in to a clear zone of intimacy ! And we talk pretty affectionately and frequently these days and it seems we make a good chatting pair . She is pretty attached to her grown up children and probably with a non intimate, dysfunctional, unsatisfactory marriage dragging on . She says her relationship in her marriage has totally failed right from beginning but she has not been able to do anything about that so far . It seems that the children are with the mother ! I find her balanced, affectionate and would like understand if something akin to a long term relationship /companionship would be possible . So have asked her to share about me, about our mutual feelings to her kids . Have also sounded her that if her husband gets to know about this relationship - it might lead to a family issue including formal break up of her marriage. And I am truly concerned about that . But she is very wishy wishy in her ideas about possible course of action , way forward .And I don't want her to get hurt or disappointed nor I want to be placed in a emotional drag. My questions are 1. Can this relationship go anywhere ? And if yes , what is the minimum expected from her ? 2. Can we be just be chatting friends ? Doesn't seem so as we talk & share as if we are a couple ? 3. What should we both do to avoid any possible emotional trauma to each of us ? (A still active and adorable senior citizen without strings and without a care in the world )
Ans: Dear Anonymous,

I am glad you found a genuine companion. I understand that you both care a great deal about each other and that is rare in today's day and age. Now coming to your questions-

1) It most definitely can. But that depends on the course of action your partner is willing to take. I assume that neither one of you would like to formally tag it as a relationship till she is married to another man, no matter how the marriage is. So, in that case, your partner must have a clear discussion about the same with her husband and you can proceed from there. But going ahead and having a romantic relationship while she is married to someone else would not be ethical and even when she has every right to seek happiness in her life, it would be her who faces all the societal judgment.

2) You can be two friends chatting with each other. Friends do share a lot, even personal matters. Having said that, it did not sound to me that you are in that platonic friend zone anymore. You have grown to like each other a little more and given the circumstances, it is perfectly alright. But to be more than friends, it is important for your partner to first speak to her current husband and consider separating. But at the end of the day, it is her decision. If she doesn't want to formally end it, you would have two options. One, love each other in secret and never have the chance to show off your love to the world. Two, break it off and either try to remain friends or sever ties altogether.

3) Don't have unrealistic expectations. We are all guilty of it time and again. In this case, even though her marriage isn't perfect- you know and she knows it too- it isn't easy to let go of a relationship people spend years to build. Take things slow and let her make her own decisions. If you expect she will leave her marriage for you, you are setting yourself up for disappointment. It might happen, but then again, it might not. Focus on being each other's companion. You can't help how you feel, but that does not mean you have to act on it right now.

One more thing- if you can see yourself getting hurt, I would suggest reconsidering the relationship. Every relationship has in its capacity to cause emotional trauma. That's the thing about romance- it can make or break you.

Best Wishes.

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Latest Questions
Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - Apr 27, 2024Hindi
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Money
I am 68 year, getting pension 60000 /month with CGHS facilities. I invested Rs 3000000 as FDs in Small Finance bank @ 9% interest and 3500000 in SCSS and PMVVY scheme. I have no other liabilities at present. Kindly suggest / guide me for investment please.
Ans: ! It's great to see you actively managing your finances even in retirement. Let's explore some investment options to optimize your returns and secure your financial future further.

Current Investment Assessment
Your current investments in Fixed Deposits (FDs), Senior Citizen Savings Scheme (SCSS), and Pradhan Mantri Vaya Vandana Yojana (PMVVY) offer stable returns and capital preservation, which is suitable for retirees seeking income stability and safety.

Diversification Opportunity
While FDs, SCSS, and PMVVY provide security, considering diversification into other asset classes can enhance your overall portfolio growth potential. Exploring options like mutual funds, bonds, and dividend-paying stocks can offer higher returns while maintaining a balanced risk profile.

Tax Efficiency
Optimizing tax efficiency is crucial to maximize your post-tax returns. Investing in tax-efficient instruments like Tax-Free Bonds, Equity Linked Savings Schemes (ELSS), and tax-saving mutual funds can help minimize tax liabilities while generating attractive returns.

Portfolio Rebalancing
Regularly reviewing and rebalancing your investment portfolio ensures alignment with your financial goals and risk tolerance. Assessing the performance of your existing investments and reallocating funds based on changing market conditions and personal circumstances can optimize returns and mitigate risk.

Consultation with a Financial Advisor
Seeking guidance from a qualified financial advisor can provide personalized investment recommendations tailored to your specific needs and objectives. They can help assess your risk tolerance, suggest suitable investment strategies, and monitor your portfolio's performance to ensure it aligns with your long-term goals.

Contingency Planning
While focusing on investments, it's essential to prioritize contingency planning. Maintaining an emergency fund equivalent to 6-12 months' worth of expenses ensures financial security during unexpected events or emergencies.

Conclusion
Your prudent approach towards investment and financial planning is commendable. By diversifying your portfolio, optimizing tax efficiency, and regularly reviewing your investments with the guidance of a financial advisor, you can further enhance your financial well-being and enjoy a worry-free retirement.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 15, 2024Hindi
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Money
Hi Sir, I am 46 years old and yeI have created 30 lakh corpus. Currently my take home salary is 1.4 lakh per month. I am investing 12500 per month in ppf . 5000 in Nps tier 1 and 1000 in nps tier 2 account. 20 K SIP in Mf. Like SBI balance fund 5000,Tata digital 5000, Nippon larg cap 2000, Motilal Oswal midcap 2000,Quant small cap 5000 and recently added Quant psu 1000. And some amount in invested lic yearly. also have 65 lakh medical cover for my family's. I have plan my retirement at the age of 55 . Can i Growup my corpus 1.5 CR at the time of retirement and get atleast 1lakh monthly for expenses. My another question is I investigated 8.5 lakh in direct stock(20) since 2021 for 10 years and get arround 20% return from last 3 years. Should I continue this or exist from the direct stock and invested this amount in MF. Please guide. My wife is already working in private school and his salary is 20k pm. Please guide
Ans: It's great to see your proactive approach towards financial planning and investment. Let's delve into your retirement and investment goals to ensure you're on track to achieve financial security and growth.

Retirement Planning Analysis
Planning to retire at 55 with a target corpus of 1.5 crores and a monthly expense requirement of 1 lakh is an ambitious yet achievable goal. Let's assess your current investments and savings to determine if they align with your retirement objectives.

Current Investment Portfolio Evaluation
Your investment portfolio exhibits a diversified mix of instruments, including PPF, NPS, mutual funds, LIC, and direct stock holdings. This diversified approach spreads risk and maximizes growth potential, aligning with your long-term financial goals.

Growth Projection and Retirement Corpus Target
To achieve a retirement corpus of 1.5 crores by 55, we'll need to assess your current savings rate, investment returns, and inflation impact. Utilizing retirement calculators and financial modeling can help determine the required monthly contributions and investment growth rate to meet your target.

Investment Strategy Review
Given your successful track record with direct stock investments and the robust performance with a 20% return over the past three years, continuing this strategy can be beneficial. However, it's essential to periodically review and rebalance your portfolio to optimize returns and mitigate risk.

Asset Allocation and Risk Management
Maintaining a balanced asset allocation across equity, debt, and other asset classes is key to managing risk and achieving long-term growth. Regularly monitoring market conditions and adjusting your portfolio accordingly can help capitalize on opportunities and minimize downside risk.

Importance of Contingency Planning
While focusing on retirement planning, it's crucial to prioritize contingency planning, including emergency funds, health insurance coverage, and estate planning. Adequate medical coverage for your family and an emergency fund provide financial security during unexpected events.

Consultation with a Certified Financial Planner
Engaging with a Certified Financial Planner can provide personalized guidance and strategies tailored to your financial goals and risk tolerance. They can help optimize your investment portfolio, assess retirement readiness, and navigate any financial challenges along the way.

Conclusion
With careful planning, disciplined savings, and strategic investment decisions, achieving your retirement goal of a 1.5 crore corpus by 55 is attainable. Continuing your direct stock investments alongside mutual funds can diversify your portfolio and enhance long-term growth potential. Consulting with a Certified Financial Planner will provide valuable insights and ensure you stay on track towards financial independence.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 15, 2024Hindi
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Money
I m 45 having 6cr in stocks , fd etc . I earn 10 lacs per month , no debt but have two kids study to look into . When can I retire
Ans: Retirement Planning Analysis
Congratulations on achieving significant financial success and maintaining a debt-free status! Let's evaluate your retirement readiness considering your current assets, income, and responsibilities towards your children's education.

Current Financial Status
With assets totaling 6 crores in stocks, fixed deposits, and other investments, coupled with a monthly income of 10 lacs, you're in a strong financial position. However, retiring involves careful planning to ensure sustainable income and lifestyle maintenance post-retirement.

Responsibilities towards Children's Education
As a parent with two children pursuing studies, it's essential to allocate sufficient funds towards their education expenses. Determining the estimated cost of their education and factoring in inflation will help you plan effectively without compromising your retirement goals.

Retirement Age Projection
To ascertain when you can retire comfortably, we'll need to analyze your desired retirement lifestyle, expected expenses, and investment returns. A retirement calculator can help estimate the corpus required to sustain your lifestyle post-retirement based on your anticipated lifespan and inflation-adjusted expenses.

Retirement Corpus Assessment
Given your substantial assets and income, retiring early may be feasible, provided you have a robust retirement corpus to sustain your lifestyle and cover unforeseen expenses. Assessing your risk tolerance and investment horizon will aid in determining an appropriate asset allocation strategy for your retirement portfolio.

Retirement Planning Strategies
Optimizing tax-efficient investment vehicles like retirement funds and annuities can enhance your retirement savings while minimizing tax liabilities. Additionally, diversifying your investment portfolio across asset classes can mitigate risk and maximize returns, ensuring a stable income stream during retirement.

Consultation with a Certified Financial Planner
Engaging with a Certified Financial Planner can provide personalized retirement planning advice tailored to your financial objectives and risk profile. They can help formulate a comprehensive retirement strategy, including asset allocation, withdrawal strategies, and contingency planning, to ensure a smooth transition into retirement.

Conclusion
Your sound financial standing and prudent approach towards debt management lay a solid foundation for a comfortable retirement. With careful planning, disciplined savings, and strategic investment decisions, you can retire on your terms and enjoy financial freedom while securing your children's future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 15, 2024Hindi
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Money
I am 36 year old public sector bank employee in a small bank, working as officer. Each month I am investing Rs. 15K in Recurring Deposit, SIP of Rs. 12K in Mutual funds ( 2K each in Kotak equity hybrid, ICICI Bluechip, Edelweiss Balance Advantage, Nippon gold savings fund, ICICI Value discovery, P Pareikh Flexi Cap), Rs. 4 K in Sukanya Samriddhi. I am NPS optee. I have taken 60 Lacs HBL recently. My daughter is now 1.3 years old. I have a cumulative savings of Rs. 17 Lacs till date in form of Fixed Deposits. Will these be sufficient for my daughter's Higher Education 20 years down the line?
Ans: Planning for Your Daughter's Higher Education
Firstly, congratulations on taking proactive steps towards securing your daughter's future education! Let's assess the adequacy of your current savings and investments to meet her educational expenses 20 years from now.

Evaluation of Existing Investments
Your investment approach demonstrates a mix of conservative and growth-oriented instruments, catering to short-term liquidity needs (Recurring Deposit), long-term wealth accumulation (Mutual Funds, Sukanya Samriddhi), and retirement planning (NPS). It's a well-rounded strategy considering your risk tolerance and financial goals.

Impact of HBL on Financial Planning
The recent home loan of 60 Lacs adds a significant financial commitment to your portfolio. While it's a milestone achievement in securing a home for your family, it's crucial to consider its impact on your monthly cash flows and ability to save and invest for other goals, including your daughter's education.

Assessment of Higher Education Expenses
Forecasting higher education costs 20 years ahead involves considering inflation and the type of institution your daughter might attend. Assuming a conservative inflation rate of 6-7%, the cost of education is likely to increase substantially. It's essential to estimate these future expenses accurately to plan effectively.

Adequacy of Current Savings
With a cumulative savings of 17 Lacs in fixed deposits and ongoing investments in various instruments, your savings trajectory is commendable. However, to determine if it's sufficient for your daughter's education, we need to calculate the future value of your investments considering their growth potential and inflation impact.

Future Investment Strategy
Given your investment horizon of 20 years, continuing systematic investments in growth-oriented instruments like mutual funds is prudent. However, periodically reviewing and adjusting your investment allocations based on changing life circumstances, market conditions, and financial goals is crucial to stay on track.

Contingency Planning
In addition to education planning, it's essential to build an emergency fund to cover unforeseen expenses and mitigate financial risks. Allocating a portion of your savings towards this fund ensures financial stability and peace of mind during challenging times.

Conclusion
While your current savings and investments lay a solid foundation for your daughter's education, it's essential to regularly review and recalibrate your financial plan to adapt to evolving circumstances. Consulting with a Certified Financial Planner can provide personalized guidance and strategies to optimize your financial journey and achieve your goals.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 15, 2024Hindi
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Money
I am 59 and my retirement is at 60. I already withdrawn 3 times from my PF account for Education and others. At 59, can I go for another withdrawal (as per one year before retirement policy). Do I need to get certificate from my company for 60 years retirement age ?
Ans: With partial withdrawals from your PF account already done, and considering you're 59 and nearing retirement at 60, here's what you need to know about another withdrawal:

Partial Withdrawal Policy: The one-year before retirement policy for partial withdrawal applies to full withdrawals, not necessarily partial ones.
Current Regulations: Generally, after five years of service, you can make a partial withdrawal for specific reasons (medical, children's education, etc.). However, the specific rules and limitations can vary depending on your organization and the latest EPF regulations.
Here's what you can do:

Check Your Employer: Contact your HR department or the official managing your PF account. They can provide the most up-to-date information on your specific situation and eligibility for partial withdrawal.
Review EPF Withdrawal Rules: The EPFO (Employees' Provident Fund Organisation) website (https://www.epfindia.gov.in/) offers resources on PF withdrawals. Familiarize yourself with the current regulations.
Certificate for Retirement Age:

Not Usually Required: In most cases, your employer should have your retirement age documented in your service records. A separate certificate might not be necessary for your final PF withdrawal at 60.
Planning for Retirement:

Since you're close to retirement, consider these steps:

Calculate Retirement Needs: Estimate your monthly expenses to determine the required corpus for your golden years.
Review Other Retirement Savings: Factor in any other retirement savings you might have (pension, personal investments) for a holistic picture.
Consult a Financial Advisor: A professional can help you plan your post-retirement finances and ensure a smooth transition.
Remember, accurate information about your specific PF withdrawal options comes from your employer or the EPFO website.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

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I have monthly SIP 5K each in in Parag parikh flexi cap, Hdfc flexi cap, Nippon smal cap, ICICI value discovery , ABSL digital, DSP health care, ICICI banking, UTI next 50, motilal fund of fund
Ans: As a Certified Financial Planner, I appreciate your commitment to systematic investing through SIPs across various mutual fund categories. Let's delve into a comprehensive evaluation of your portfolio to ensure it aligns with your financial goals and risk appetite.

Diversification Assessment
Your portfolio exhibits a diversified mix across multiple fund categories, which is commendable. It encompasses flexi cap, small cap, value discovery, thematic, sectoral, and index funds. This diversification strategy spreads risk and maximizes potential returns.

Analysis of Fund Selection
Each fund category serves a specific purpose in your portfolio. Flexi cap funds offer flexibility to invest across market capitalizations, capturing growth opportunities efficiently. Small cap funds have the potential for high growth but come with increased volatility, suitable for long-term investors with a higher risk tolerance.

Value discovery and thematic funds provide exposure to undervalued stocks and emerging sectors, respectively, contributing to alpha generation. Sectoral funds like healthcare and banking focus on specific industries, offering targeted exposure and potential for outperformance during sectoral upswings.

Sectoral funds focus on one industry, so they're like putting all your eggs in one basket. If that industry struggles, your whole investment can suffer. They also tend to be more volatile than diversified funds. Consider a broader mix for a more balanced approach.
Active vs. Passive Management
While passive index funds and ETFs have gained popularity for their low costs and broad market exposure, your portfolio emphasizes actively managed funds. Actively managed funds offer the advantage of professional fund management, allowing active decisions to capitalize on market inefficiencies and generate alpha.

Importance of Regular Funds
Investing through a Certified Financial Planner can provide access to regular funds, which offer personalized advice, portfolio monitoring, and rebalancing. This approach ensures informed investment decisions tailored to your financial objectives, compared to direct investing, which may lack professional guidance and discipline.

Monitoring and Rebalancing Strategy
Regular portfolio review is essential to ensure alignment with changing market dynamics and your evolving financial goals. Periodic rebalancing maintains the desired asset allocation, mitigating risk and optimizing returns over the long term.

Conclusion
Your investment portfolio reflects a well-thought-out strategy with diversification across various mutual fund categories. Emphasizing actively managed funds and leveraging the expertise of a Certified Financial Planner can enhance portfolio performance and mitigate risk effectively.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 15, 2024Hindi
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I am a 31 year old Male. Currently, my salary is around 18 lac post deductions (Tax + 7% ESPP). I have an education loan of 40 lac with 12.75% floating interest (70k monthly EMI) which needs to be cleared in next 10 years. I will get a tax rebate on the interest paid for another 5 years. This reduces my actual ROI around 9%. My question is if it is worth it to prepay the loan (in < 5 or
Ans: Deciding whether to prepay your education loan depends on several factors, but here's a breakdown to help you assess your situation:

Arguments for Prepaying the Loan:

Save Money on Interest: Even with a reduced ROI of 9%, prepayment can save you a significant amount on total interest paid over the loan tenure.
Become Debt-Free Faster: Prepaying reduces your loan tenure, helping you achieve financial freedom sooner.
Peace of Mind: Eliminating a large monthly EMI can provide psychological relief and improve your financial well-being.
Arguments Against Prepaying the Loan:

Reduced Liquidity: Prepayment reduces the money available for other investments or emergencies.
Potential for Higher Returns: Investing the prepayment amount elsewhere might generate higher returns than the loan's interest rate (if invested wisely).
Tax Benefit Expiration: Once the tax rebate on interest ends after 5 years, the effective interest rate will rise to 12.75%.
Here are some additional factors to consider:

Your Risk Tolerance: Are you comfortable investing the prepayment amount in potentially higher-risk assets?
Emergency Fund: Do you have a sufficient emergency fund to cover unexpected expenses?
Future Financial Goals: Do you have any short-term or long-term financial goals that require the prepayment amount?
Consulting a Certified Financial Planner (CFP) is recommended. They can help you:

Analyze Your Finances: Assess your income, expenses, investments, and risk tolerance.
Create a Financial Plan: Develop a personalized plan considering your loan, investment options, and future goals.
Calculate Prepayment Benefit: Quantify the potential interest savings from prepayment.
Here's a possible approach:

Continue with EMI payments: Ensure timely payments to maintain a good credit score.
Invest a Portion of Savings: Consider investing a portion of your surplus funds in diversified assets for potentially higher returns.
Evaluate Prepayment After 5 Years: Once the tax benefit on interest ends, recalculate the effective interest rate and assess if a lump sum prepayment becomes more attractive.
Remember: There's no one-size-fits-all answer. A CFP can provide personalized guidance based on your specific circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 07, 2024Hindi
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Respected everyone I invested in multiple mutual funds around 5 - 10 thousand but didn't continue. My age is 44 please suggest which mutual fund is the best for SIP doesn't matter for long period.
Ans: Selecting Mutual Funds for SIP at Age 44: Long-term Perspective
Investing in mutual funds via SIP is a prudent strategy for wealth accumulation, especially when considering long-term financial goals. Let's explore suitable mutual fund options for SIP investing, considering your age and the desire for long-term growth.

Investment Horizon and Risk Tolerance
At 44, with a longer investment horizon ahead, it's crucial to balance growth potential with risk tolerance. While you may have a moderate risk appetite, your focus on long-term growth allows for a diversified portfolio with exposure to equities.

Mutual Fund Selection Criteria
Diversification: Opt for mutual funds that offer diversification across sectors, market capitalizations, and investment styles. This helps mitigate risk and capture opportunities across different segments of the market.

Consistent Performance: Choose funds with a track record of consistent performance relative to their benchmarks and peers. Look for funds managed by experienced fund managers with a proven investment strategy.

Expense Ratio: Consider funds with a reasonable expense ratio, as lower expenses can significantly impact long-term returns. Focus on the net returns generated by the fund after deducting expenses.

Recommended Mutual Funds
Large-cap Equity Funds: These funds invest in well-established companies with a track record of stable performance. They offer stability to the portfolio while providing growth potential over the long term.

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.

Balanced Advantage Funds: These funds dynamically manage asset allocation between equities and debt based on market conditions. They offer downside protection during market downturns while participating in equity market upswings.

Professional Guidance
Consulting a Certified Financial Planner can provide personalized advice tailored to your financial goals, risk tolerance, and investment horizon. They can help you select mutual funds aligned with your objectives and monitor your portfolio's performance over time.

Conclusion
Investing in mutual funds via SIP for the long term is a prudent strategy to achieve your financial goals. By selecting diversified funds with consistent performance and seeking professional guidance, you can build a robust investment portfolio that grows steadily over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |2222 Answers  |Ask -

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

Asked by Anonymous - May 07, 2024Hindi
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I am 28 years old. I have a salary of 75k, out of which 8k invested in EPF, 10k invested in Small cap(6k) and Mid cap(4k) Mfs as monthly SIP (started SIP in month of April 2024). My monthly expense is 30k. Currently I have 4L invested in EPF and 20k invest in MFs. I want to build a corpus of 1cr in next 10 years and build on that. Should I diversify my investment or increase my investment in current instuments.
Ans: Building a Corpus of 1 Crore in 10 Years: Investment Strategy
At 28, with a stable income and a clear financial goal of accumulating a corpus of 1 crore in the next 10 years, it's crucial to formulate a robust investment strategy. Let's evaluate your current investments and explore options to achieve your target corpus.

Current Investment Analysis
EPF Contributions: Your EPF contributions provide a foundation for long-term wealth accumulation with their tax benefits and compounding effect over time. With 4 lakhs already invested, your EPF contributions can significantly contribute to your corpus building.

Small-cap and Mid-cap SIPs: Investing 10k monthly in small-cap and mid-cap mutual funds through SIPs demonstrates your willingness to take on higher risk for potential growth. These funds have the potential to deliver superior returns over the long term but come with increased volatility.

Strategies for Corpus Building
Increase SIP Contributions: Given your age and investment horizon, increasing your SIP contributions can accelerate your wealth accumulation. Consider gradually increasing your SIP amounts in small-cap and mid-cap funds to capitalize on their growth potential.

Diversification: While small-cap and mid-cap funds offer growth opportunities, diversifying your portfolio with investments in large-cap and multi-cap funds can help manage risk. Consider allocating a portion of your investments to these funds to achieve a balanced portfolio.

Additional Investment Avenues: Explore other investment avenues like Public Provident Fund (PPF), National Pension Scheme (NPS), or Equity Linked Savings Scheme (ELSS) for tax-efficient wealth accumulation. These options offer tax benefits along with potential returns.

Professional Guidance
Consulting a Certified Financial Planner can provide personalized guidance tailored to your financial goals, risk tolerance, and investment horizon. They can help you optimize your investment portfolio and make informed decisions to achieve your target corpus.

Regular Review and Adjustment
Periodically review your investment portfolio's performance and make necessary adjustments based on changes in market conditions, financial goals, and risk tolerance. Regular monitoring ensures that your portfolio remains aligned with your objectives.

Conclusion
To achieve your goal of building a corpus of 1 crore in 10 years, it's essential to adopt a balanced approach to investment by diversifying your portfolio and increasing your SIP contributions. Seeking professional guidance and regularly reviewing your portfolio are key to realizing your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...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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