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Kanchan Rai  |295 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Mar 21, 2024

Kanchan Rai has 10 years of experience in therapy, nurturing soft skills and leadership coaching. She is the founder of the Let Us Talk Foundation, which offers mindfulness workshops to help people stay emotionally and mentally healthy.
Rai has a degree in leadership development and customer centricity from Harvard Business School, Boston. She is an internationally certified coach from the International Coaching Federation, a global organisation in professional coaching.... more
Asked by Anonymous - Mar 20, 2024Hindi

Hi Sir. I have a typical.problem here. I lend.money to one of.mynfriends for his bzness..I worked as a consultant for him. I made an agreement for the money given to him. Nevertheless he didn't return the money yet..I left him now some months back. Though I asked him to give bac money but he says he has lost lot in his bzness and also says he can't return the money. Sometimes indirectly he says that because of me he has landed in loss. I don't want to go.legally but it has been lot.ot.months that he has returned money. But now I can't wait. What should I do now..pls advise. Thanks

Ans: Navigating financial matters within friendships can be challenging, especially when agreements aren't upheld as expected.

Initiate an open and honest conversation with your friend about the loan. Express your concerns and feelings without blaming or accusing. Use "I" statements to convey how his actions have impacted you personally.
Give your friend an opportunity to explain his side of the story. Listen attentively to understand his perspective and the challenges he's facing with his business. Empathize with his situation while also emphasizing the importance of fulfilling financial commitments.
Instead of dwelling on past grievances, shift the conversation toward finding a solution that works for both of you. Explore options such as renegotiating the repayment terms, setting up a payment plan, or considering alternative forms of compensation if he's unable to repay the full amount immediately.
Validate your friend's feelings and concerns about the situation, but also assert the impact his actions have had on you. Help him understand the importance of honoring agreements and maintaining trust in the relationship.
Clearly communicate your expectations moving forward. If you're unable to reach a resolution or if your friend continues to disregard the agreement, be prepared to set boundaries to protect yourself financially and emotionally. This might involve seeking legal advice or taking further action if necessary.
While it's important to address the financial issue, prioritize preserving the friendship if possible. Reassure your friend that your intention is not to harm the relationship but to find a mutually beneficial solution. Emphasize the value you place on your friendship and your desire to work through this challenge together.
Use this experience as an opportunity for personal and relational growth. Reflect on what you've learned about trust, communication, and financial boundaries in friendships. Apply these lessons to future interactions to prevent similar issues from arising.
Ultimately, finding a resolution to financial disputes within friendships requires patience, empathy, and effective communication. By approaching the situation with understanding and a willingness to collaborate, you can work toward a solution that honors both your financial needs and the integrity of your relationship.

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Anu Krishna  |1057 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 28, 2023

Asked by Anonymous - Aug 27, 2023Hindi
Hi anu.morn. i m Sk. I have spoilt my relations with a lot of people bcoz i.owe them.money. they do not show it and i have got to know bcoz they want to be distant bcoz they think i will ask them.more money. They are right. I am.not using the money for some negative purpose but for education of my.child. in my.heart i would surely return the money shortly. I could not return the money bcoz i had no.job for a few monthd and now i m.stressed up bcoz i need to return.the money ASAP. This is giving me sleepless nights as the money is taken on interest. Plz help me with a solutiion.thanks
Ans: Dear Anonymous,
This simply means you haven't been financially prudent!
And to top that, people do not trust you with their money? In the past, have you borrowed money and not returned it to people?
For the people that you need to return the money:
- Do remember, that the ones you have loaned you the money have done so, believing you fully.
- Do remember that these people also need their money for their use
- Do remember to communicate to them as to when you will return their money and keep that commitment
They do not know that you have good intentions in your heart to return the money. So, communicate that to them, so that they trust you and support you.

Money does in between people and spoils the dynamics of the relationship. So do not let this situation play out again the future. Seek the help of someone who can help you manage your monies well and advise you on investments as well. Make your money work work you.

All the best!

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Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2024

I took loan and gave my friend rs.3 lacs. He didn't pay me back till now. Now, the loan came for settlement and I am clearing it month on month after speaking with the collection team. Current situation I am not able apply for any loan and even not able to purchase a mobile for myself in EMI. How should I get my cibil scores corrected and get eligible for loans Also, I came to know he purposely not giving my money back. How to recover my hard earned money from him legally. Is this possible
Ans: Understanding Your Financial Situation
You loaned Rs. 3 lakhs to a friend who has not repaid you. This has affected your ability to get loans and purchase items on EMI due to your current financial situation and credit score. Let's explore steps to improve your CIBIL score and recover your money legally.

Improving Your CIBIL Score
Regular Payments
To improve your CIBIL score, continue making regular payments on your existing loan. Timely payments are crucial for rebuilding your creditworthiness.

Clear Outstanding Debts
Focus on clearing any outstanding debts. Even partial payments can help show lenders that you are committed to repaying your debts.

Avoid New Credit
Refrain from applying for new credit until your score improves. Frequent loan applications can negatively impact your credit score.

Monitor Your Credit Report
Regularly check your CIBIL report for any discrepancies or errors. Dispute any incorrect information to ensure your report is accurate.

Effective Budget Management
Create a Budget
Develop a monthly budget to manage your expenses and allocate funds towards loan repayment. This helps in tracking your financial commitments.

Prioritize Debts
List your debts and prioritize them based on interest rates and due dates. Focus on paying off high-interest debts first to reduce financial burden.

Emergency Fund
Build an emergency fund to cover unforeseen expenses. This prevents you from needing to take additional loans during emergencies.

Legal Steps to Recover Your Money
First, communicate with your friend and remind them about the loan. Sometimes, a gentle reminder can prompt repayment.

Legal Notice
If communication fails, send a formal legal notice. This serves as a warning and can often lead to repayment.

Civil Court
If the legal notice does not work, file a civil suit in a local court. Gather all evidence, including loan agreements and communication records, to support your case.

Alternative Resolution Methods
Consider mediation as an alternative dispute resolution method. A neutral third party can help negotiate repayment terms.

Arbitration is another option where an arbitrator listens to both parties and makes a binding decision. This is faster than court proceedings.

Steps to Avoid Future Financial Issues
Written Agreements
Always have a written agreement for any loan given to friends or family. This helps in legal proceedings if the need arises.

Limit Personal Loans
Limit the amount of money you lend to others. Ensure it does not impact your financial stability.

Benefits of a Certified Financial Planner
Expert Advice
A Certified Financial Planner (CFP) can provide expert advice tailored to your financial situation. They can help create a personalized plan for debt repayment and credit score improvement.

Financial Planning
CFPs assist in comprehensive financial planning, including budgeting, investment, and risk management. This ensures long-term financial health.

Final Insights
You are facing a challenging financial situation, but with strategic planning, you can improve your CIBIL score and recover your money. Focus on regular debt repayments, budget management, and legal steps to recover your loan. Consider seeking advice from a Certified Financial Planner to create a robust financial plan.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


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Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 18, 2024

Asked by Anonymous - Jun 17, 2024Hindi
I took loan and gave my friend rs.3 lacs. He didn't pay me back till now. Now, the loan came for settlement and I am clearing it month on month after speaking with the collection team. Current situation I am not able apply for any loan and even not able to purchase a mobile for myself in EMI. How should I get my cibil scores corrected and get eligible for loans Also, I came to know he purposely not giving my money back. How to recover my hard earned money from him legally. Is this possible
Ans: Managing a financial setback can be daunting, especially when it involves unpaid loans and damaged credit scores. You are not alone in facing such challenges. With careful planning and appropriate actions, you can recover your money, rebuild your credit score, and regain financial stability.

Understanding Your Current Situation
You lent Rs 3 lakhs to a friend who has not repaid the amount. The loan you took to lend him the money is now under settlement. This situation has impacted your ability to apply for new loans or even purchase items on EMI. Let’s break down the steps to address this.

Steps to Recover Your Money Legally
1. Initiate a Formal Request for Repayment
Start by formally requesting your friend to repay the loan. Send a written communication (email or letter) detailing the loan amount, the repayment terms initially agreed upon, and the current outstanding amount.

Document Everything: Keep records of all communications. This will be useful if you need to take legal action later.
2. Send a Legal Notice
If informal requests don’t work, consult a lawyer to draft and send a legal notice to your friend. The notice should state:

The loan amount and the date it was given.
The repayment terms and the breach of agreement.
A demand for repayment within a specified time frame (usually 15-30 days).
3. File a Civil Suit
If your friend fails to respond to the legal notice, you can file a civil suit for recovery of money in a court. Here’s the process:

Consult a Lawyer: Engage a lawyer who specializes in such cases.
File a Case: The lawyer will file a case in the appropriate court.
Court Proceedings: Attend the court hearings. The court will examine the evidence and give a judgment.
4. Explore Alternative Dispute Resolution
Consider mediation or arbitration as alternative ways to resolve the dispute. These methods can be quicker and less formal than court proceedings.

5. Consider a Criminal Case
If you have evidence that your friend never intended to repay the money, you might have grounds for a criminal case. This could be under charges of cheating or fraud. Consult with your lawyer for the best course of action.

Rebuilding Your CIBIL Score
A good credit score is essential for future financial needs. Here’s how you can improve it:

1. Continue Making Payments
Ensure you continue to make timely payments on your existing loans and bills. Consistent payment history significantly impacts your credit score.

Automate Payments: Set up automatic payments to avoid missed deadlines.
Track Due Dates: Maintain a calendar of all payment due dates.
2. Reduce Outstanding Debt
Focus on paying down your debts. High outstanding debt relative to your credit limit can lower your score.

Debt Avalanche Method: Pay off high-interest debts first.
Debt Snowball Method: Pay off smaller debts first to build momentum.
3. Avoid New Debt
Limit taking on new debt until your current situation improves. Each new loan application can impact your credit score negatively.

Use Credit Sparingly: Keep credit card balances low and avoid unnecessary loans.
4. Check Your Credit Report
Regularly check your CIBIL report for errors or discrepancies. If you find any inaccuracies, report them to CIBIL for correction.

Request Reports: Obtain your credit report annually for free from the official CIBIL website.
Dispute Errors: Use the CIBIL dispute resolution process to correct any mistakes.
5. Maintain a Healthy Credit Mix
Having a mix of secured and unsecured loans can positively impact your credit score. However, manage these wisely to avoid over-leverage.

Practical Financial Management Tips
Effective financial management is crucial during this period. Here’s how you can manage your finances better:

1. Create a Budget
Develop a monthly budget to track your income and expenses. This will help you manage your money more effectively.

Categorize Expenses: Break down expenses into fixed and variable categories.
Set Limits: Allocate specific amounts for each category and stick to them.
2. Build an Emergency Fund
Set aside a portion of your income to build an emergency fund. This fund will be a financial cushion in case of unexpected expenses.

Start Small: Even small contributions can grow over time.
Use High-Interest Accounts: Park your emergency fund in high-interest savings accounts or liquid mutual funds.
3. Cut Unnecessary Expenses
Identify and eliminate non-essential expenses. Redirect these funds towards debt repayment and savings.

Review Subscriptions: Cancel unused subscriptions and memberships.
Smart Shopping: Look for discounts and deals when shopping.
4. Increase Income
Explore ways to increase your income. This could be through side gigs, freelance work, or part-time jobs.

Leverage Skills: Use your skills to earn extra money, such as tutoring, consulting, or freelance writing.
Invest in Learning: Enhance your skills to open up new income opportunities.
Understanding Legal Frameworks for Money Recovery
1. The Indian Contract Act, 1872
This act governs the enforcement of contracts in India. If your loan agreement with your friend was formalized (even orally), it can be enforced under this act.

2. Negotiable Instruments Act, 1881
If your friend gave you a cheque that bounced, you can take legal action under this act.

3. Small Claims Court
For amounts less than Rs 20 lakhs, small claims court can be a faster and less expensive option for money recovery.

Steps for Filing a Case in Small Claims Court
1. Preparation
Prepare all necessary documentation, including the loan agreement, communication records, and any evidence of repayment demands.

2. Filing the Complaint
Submit a complaint to the small claims court. The complaint should detail the amount owed and the circumstances of the loan.

3. Court Proceedings
Attend court hearings and present your case. The court will examine the evidence and issue a judgment.

Protecting Yourself Financially in the Future
1. Formalize Loans
If you lend money in the future, ensure all agreements are formalized in writing. Include clear terms and conditions.

Legal Agreements: Draft formal loan agreements with clear repayment terms.
Witnesses: Have witnesses sign the agreement if possible.
2. Limit Personal Loans
Avoid lending large sums of money to friends or family without proper security.

Evaluate Risk: Assess the risk before lending money.
Seek Collateral: Consider asking for collateral for significant loans.
3. Financial Literacy
Enhance your financial literacy to make informed decisions.

Courses and Workshops: Attend financial literacy courses and workshops.
Reading: Read books and articles on personal finance and investment.
Final Insights
You are in a challenging situation, but with the right steps, you can recover your money and rebuild your credit score. Here’s a summary:

Recovering Money:

Send formal repayment requests.
Issue a legal notice.
File a civil suit if necessary.
Improving Credit Score:

Continue making timely payments.
Reduce outstanding debt.
Avoid new debt and check your credit report regularly.
Financial Management:

Create a budget.
Build an emergency fund.
Cut unnecessary expenses.
Explore ways to increase income.
Legal Frameworks:

Utilize the Indian Contract Act, Negotiable Instruments Act, and Small Claims Court.
Future Precautions:

Formalize loans.
Limit personal loans.
Enhance financial literacy.
Implement these strategies diligently to regain financial stability and secure a better financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


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Latest Questions

Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 15, 2024Hindi
Sir I want to SIP of 40k per month and want to make a corpus of 1cr in coming 8 years kindly suggest
Ans: Evaluating Your Goal
You aim to create a Rs. 1 crore corpus in 8 years. Investing Rs. 40,000 per month via SIPs is a solid strategy. Let’s break it down.

Benefits of Systematic Investment Plans (SIPs)
Disciplined Investing: Helps you invest regularly.
Rupee Cost Averaging: Reduces the impact of market volatility.
Compounding: Small amounts grow significantly over time.
Expected Returns
Assuming an average annual return of 12%, your monthly SIP of Rs. 40,000 can potentially help you reach Rs. 1 crore in 8 years.

Disadvantages of Index Funds
Limited Growth Potential: Only matches market returns.
No Active Management: Lacks strategic adjustments.
Lower Flexibility: Cannot react to market changes.
Benefits of Actively Managed Funds
Expert Management: Professionals manage your investments.
Higher Returns Potential: Aims to outperform the market.
Strategic Adjustments: Reacts to market conditions.
Disadvantages of Direct Funds
No Professional Guidance: You miss expert advice.
Higher Risk: Due to lack of professional management.
Complexity: Requires deep knowledge and time.
Benefits of Investing Through MFD with CFP
Expert Advice: Helps in making informed decisions.
Regular Monitoring: Keeps your investments on track.
Customized Portfolio: Tailored to your goals and risk profile.
Investment Strategy
Step 1: Diversify Investments
Equity Funds: High growth potential.
Debt Funds: Stability and lower risk.
Hybrid Funds: Balanced approach.
Step 2: Regular Monitoring
Review Quarterly: Adjust based on performance.
Rebalance Annually: Maintain your risk-return balance.
Step 3: Increase SIP Amount Annually
Inflation Adjustment: Increase SIP by 5-10% annually.
Step 4: Stay Committed
Market Fluctuations: Stay invested despite market ups and downs.
Long-Term Focus: Keep your eyes on the 8-year goal.
Importance of Professional Guidance
A Certified Financial Planner (CFP) can help you:

Set Realistic Goals: Based on your financial situation.
Create a Plan: Customized to your needs.
Monitor Progress: Ensure you stay on track.
Additional Considerations
Emergency Fund: Keep 6 months of expenses aside.
Insurance: Adequate health and life insurance coverage.
Tax Planning: Use tax-efficient investment options.
Final Insights
To achieve your Rs. 1 crore goal in 8 years:

Invest Rs. 40,000 monthly via SIPs.
Focus on equity funds for growth.
Seek professional advice for customized planning.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Samkit Maniar  |148 Answers  |Ask -

Tax Expert - Answered on Jul 25, 2024

Hi Samkit, I'm a retired person, 66 years old. Before retirement, I had invested Rs.93.5 lakhs in a commercial real estate in Navi Mumbi in Feb.2017 and registered the property jointly with my wife on 50/50 basis. The value of the property as determined by stamp duty registrar at that time was Rs.73.41 lakhs. The expenses on stamp duty, registration and brokerage was Rs.7.53 lakhs and improvement expenditure of Rs.4 lakhs. So total cost of purchase worked out to Rs.1.09 crores. I sold this property in Feb.2024, exactly after 7 years, for Rs.1.1 crore. Market value (for stamp duty purpose) on this date was Rs.89.89 lakhs. While filing my ITR2 in AY 2024-25, I had split all the above values by 2 and 50% was shown in my ITR2 and the remaining 50% was shown in my wife's ITR2 under CG for showing the capital gain. The system has calculated and shown the capital gain as minus Rs.31.24, i.e. Rs.-15.62 in each of our ITR2. The system has also automatically adjusted my LTCG arising out of other share transactions during the FY. The system allows the remaining loss to be carried forward to next year under CFL. My questions are: (1) Can we both go ahead and finalise & submit the ITR2 as shown above? (2) Can we use the losses carried forward during the next AY to set off our incomes arising out of share market transactions? Thank you so much in advance for your valuable time and advice.
Ans: Yes, seems correct treatment done. You can go ahead with submitting your returns respectively.

Please note that Long term losses can only be set off against long term gains, if that's the case then you can.

Please consult your CA before moving ahead.

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Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 15, 2024Hindi
I'm a 20 year old student. I want a corpus of 15 crores in the next 15 to 20 years. How much daily SIP should I do? And which type of mutual fund should I invest it.
Ans: Creating a corpus of Rs. 15 crores in 15 to 20 years is a significant goal. You will need a structured investment strategy and disciplined approach to achieve it.

Benefits of Early Investment

Starting investments at 20 gives you a huge advantage. Time is on your side, allowing your investments to compound and grow significantly.

Daily SIP for Consistency

A daily SIP ensures regular investment without burdening you with a large lump sum. It helps inculcate discipline and takes advantage of market fluctuations.

Types of Mutual Funds

Given your long-term horizon, equity mutual funds are ideal. They offer higher returns compared to other types, albeit with higher risk.

Recommended Mutual Funds

Large-Cap Funds

These invest in large, established companies.
They offer relatively stable returns.
Mid-Cap Funds

These invest in mid-sized companies.
They provide a balance between risk and return.
Small-Cap Funds

These invest in small companies with high growth potential.
They come with higher risk but can offer substantial returns.
Flexi-Cap Funds

These funds invest across market capitalizations.
They offer diversification and flexibility.
Sectoral/Thematic Funds

These invest in specific sectors.
Higher risk but can provide significant returns if the sector performs well.
Disadvantages of Direct Funds

Investing in direct funds requires a deep understanding of the market. Without expert guidance, it can be challenging to manage. It's beneficial to invest through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential. They offer professional advice, regular portfolio reviews, and help in achieving your goals efficiently.

Calculating Daily SIP

To estimate the daily SIP amount:

The total corpus required: Rs. 15 crores
Investment horizon: 15 to 20 years
Let's assume an average return of 12% per annum from equity mutual funds. For accurate daily SIP calculation, consider consulting a Certified Financial Planner.


Diversifying your investments reduces risk. Allocate your SIP across different fund types to balance risk and returns. For example:

Large-Cap: 30%
Mid-Cap: 30%
Small-Cap: 20%
Flexi-Cap: 20%
Regular Monitoring and Adjustment

Regularly review your portfolio. Market conditions and your financial situation may change. Adjust your investments accordingly.

Building Financial Discipline

Consistent investing and financial discipline are crucial. Avoid unnecessary expenses and focus on your long-term goals.

Importance of Professional Guidance

Consulting a Certified Financial Planner can provide personalized advice and help you navigate market complexities. They ensure your investment strategy aligns with your financial goals.

Final Insights

Achieving a corpus of Rs. 15 crores in 15 to 20 years is ambitious but attainable. Start with a daily SIP in diversified mutual funds. Regularly review and adjust your investments. Professional guidance can greatly enhance your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


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Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Asked by Anonymous - Jul 15, 2024Hindi
Dear Sir We had booked a flat in one of the projects in Karnataka ( 15 + years back) but when the project is about to complete the land owner of that apartment filed the case against the builder because the builder had constructed few flats illegally in that project.. The land owner had demanded few crores from the builder for illegally constructing the flat...During that time we were in abroad and 3 flats werent registered in this project one is ours and 2 more flat owners were in abroad too..Thats out of 35 flats... Hence the builder had registered three flats in their name for the safety..But till now we havent got registered of that flat in our name becos there is case in the court. Hence there is no completion certificate issued for that project..etc.... and no flat owner can sell their flat due to the court case. However the builder had given us a power of attorney for the flat for rent it out or stay... And we have rented the flat and are getting the rent... we have been regularly followed up with the builder, he everytime promises today tomorrow....like this 15+ years passed...last year we asked for a replacement flat in one of their new project and he agreed to give us a replacement flat provided we pay some extra bucks as per the rate...We agreed for that and got the agreement signed and also got the sale deed of the land etc.. we have paid the payment in cheques.Its a huge project and completion of the project is bit slow and got delayed.... Recently, the builder had sent an email to all flat owners to register their flats but when we consulted for registration the builder said he had to transfer the payment done by us from the previous project to this new project...hence it would take time (by the way thats their internal issue) everytime we consulted for registration he says it would take one months time and his legal team is working on it...Sometime he says the court case should get over of the other project and then only he can help to register the the present flat..(though the previous flat is in their name itself) we have nothing to do with case (as the Case is between land owner and builder) also the previous flat registration al in their name..we have only agreement and receipts.of payment done...hence so far the flat is not registered...most of the flats got registered in the new project...The project is not completed yet it would take one more year... My question is why the builder is delaying the registration process of our flat and why is he not doing the internal issues solved and help us to register our flat in our name... Should we register the flat ourselves provided we get required documents from the builder? Or consult a lawyer in this regard...Pls guide...
Ans: You booked a flat 15+ years ago in Karnataka. The project faced legal issues due to illegal construction. You haven’t been able to register the flat in your name.

Builder’s Delay
The builder registered three flats, including yours, in their name. You have a power of attorney to rent it out. The builder promised a replacement flat in a new project, but the registration is still delayed.

Key Questions
Why is the builder delaying registration?
Should you register the flat yourself?
Should you consult a lawyer?
Builder's Delay Analysis
Internal Issues
Fund Transfer: The builder needs to transfer payments from the previous project to the new one. This seems to be causing delays.

Legal Complications: The builder indicates that the ongoing court case may affect the registration process. However, you have no involvement in this case.

Project Completion
Project Delay: The new project is not yet complete. This might also contribute to the registration delay.
Consult a Lawyer
Legal Advice: Consult a lawyer to understand your legal standing and options.

Documentation: Ensure all your documents are in order. The lawyer can help review and prepare necessary paperwork.

Registration Process
Self-Registration: With the required documents from the builder, you might register the flat yourself. This requires legal guidance.

Follow-Up: Continue to follow up with the builder regularly. Ensure all communication is documented.

Legal Action
Notice to Builder: Your lawyer may suggest sending a legal notice to the builder for delaying registration.

Court Case: If the builder doesn’t cooperate, consider filing a case against them. This might expedite the process.

Insightful Evaluation
Assessing Risks
Builder's Reliability: Evaluate the builder’s past projects and their completion rates. This helps in assessing the likelihood of further delays.

Legal Risks: Understand the legal risks associated with the ongoing court case. Your lawyer can provide a detailed assessment.

Future Steps
Replacement Flat: If the builder provides a replacement flat, ensure all legal aspects are clear before agreeing.

Backup Plan: Have a backup plan in case the registration process faces more delays. This might include exploring other housing options.

Transparent Dialogue: Maintain open and transparent communication with the builder. Document all discussions and agreements.

Legal Assistance: Have your lawyer involved in all major communications with the builder. This ensures legal backing.

Final Insights
Proactive Steps
Consulting a lawyer is crucial. They can guide you through the legal complexities and help expedite the registration process.

Keep all your documents organized. This will be helpful during any legal procedures.

Regularly follow up with the builder. Ensure you have written records of all communications.

Evaluate the reliability of the builder and the legal implications of the ongoing court case. This helps in making informed decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


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Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Dear Sir/Madam, I hope this message finds you well. As the sole earning member of my family, I am 41 years old and responsible for supporting my family of five. Here are the details of my financial situation: Income and Expenses: Monthly salary income: ?1.10 lakhs. Monthly expenses: Rent (?35,000) and household expenses (?50,000). Insurance and Loans: ICICI Lombard term insurance: Coverage of ?50 lakhs with an annual premium of ?9,700. Mediclaim for my mother: Coverage of ?1 lakh with an annual premium of ?13,000. Family mediclaim: Coverage of ?2 lakhs with an annual premium of ?6,700. Loan from LIC: ?2 lakhs. Savings and Investments: PPF savings: ?80,000. Endowment policies with an annual premium of ?24,000. SIP investments in the following mutual funds: Aditya Birla Sun Life Pure Value Fund (G): ?1,000/month. Bandhan Sterling Value Fund - Regular Plan (G): ?1,000/month. DSP Flexi Cap Fund - Regular Plan (G): ?1,000/month. HDFC Mid-Cap Opportunities Fund (G): ?1,500/month. Considering this details do help me to design my portfolio for corpus of around 10crores in next 20 years.
Ans: Age: 41 years
Family: Five members
Monthly Salary: Rs 1.10 lakhs
Monthly Expenses: Rs 85,000 (Rent: Rs 35,000; Household expenses: Rs 50,000)
Insurance and Loans:
ICICI Lombard term insurance: Rs 50 lakhs (annual premium: Rs 9,700)
Mediclaim for mother: Rs 1 lakh (annual premium: Rs 13,000)
Family mediclaim: Rs 2 lakhs (annual premium: Rs 6,700)
Loan from LIC: Rs 2 lakhs
Savings and Investments:
PPF savings: Rs 80,000
Endowment policies: Annual premium Rs 24,000
SIP investments: Rs 4,500/month
Financial Planning Goals
Retirement Corpus: Rs 10 crores in 20 years
Insurance Coverage: Adequate protection for family
Debt Management: Efficiently manage and repay loans
Wealth Creation: Strategic investment for growth
Step-by-Step Financial Plan
1. Review and Enhance Insurance Coverage

Term Insurance: Ensure coverage is at least 10-15 times your annual income
Health Insurance: Increase coverage for family to Rs 5 lakhs
Mediclaim for Mother: Increase coverage to Rs 5 lakhs
2. Create an Emergency Fund

Amount: 6-12 months of expenses
Investment: High-interest savings account or short-term FDs
3. Debt Management

LIC Loan: Prioritize repaying the Rs 2 lakhs loan
Avoid New Loans: Focus on managing current debts
4. Increase SIP Investments

Existing SIPs

Aditya Birla Sun Life Pure Value Fund
Bandhan Sterling Value Fund
DSP Flexi Cap Fund
HDFC Mid-Cap Opportunities Fund

Increase Contributions: Gradually increase SIP amount by 10% annually
Diversify: Add more funds for balanced growth and risk management
5. Public Provident Fund (PPF)

Contribution: Continue investing in PPF for tax benefits
Increase Investment: Aim to contribute the maximum limit of Rs 1.5 lakhs per year
6. Endowment Policies

Evaluate Performance: Assess the returns and benefits
Consider Alternatives: If underperforming, consult a Certified Financial Planner for better options
7. Additional Investment Options

Mutual Funds

Equity Funds: For long-term growth
Debt Funds: For stability and regular income
National Pension System (NPS)

Contribution: Invest in NPS for additional retirement corpus
Benefit: Tax benefits under Section 80C and 80CCD
8. Regular Monitoring and Review

Review Portfolio: Regularly review and adjust your investments
Rebalance: Ensure your portfolio aligns with your risk tolerance and goals
Disadvantages of Index Funds
Limited Flexibility

Tracking: Index funds strictly follow market indices
Drawback: Lack of active management to adapt to market changes
Lower Returns

Potential: Actively managed funds can outperform index funds
Disadvantages of Direct Funds
Lack of Guidance

Direct Funds: No professional advice
Benefit of Regular Funds: Access to Certified Financial Planner for personalized advice

Ease: Investing through Certified Financial Planner offers better management and oversight
Final Insights
Start Early: The sooner you start, the better
Diversify: Spread investments across different asset classes
Consult a CFP: Professional advice ensures a comprehensive plan
Review Regularly: Adjust your plan as needed to stay on track
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |5300 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Sir, I have invested Rs. 200000/-in Nippon India Nifty I T Index fund in the month of Feb, 2024. Is it worth stay invested or switch over?
Ans: You invested Rs 2,00,000 in the Nippon India Nifty IT Index Fund in February 2024. Here’s a detailed evaluation.

Understanding Index Funds
1. Passive Investment:

Index funds replicate market indices.
They offer average market returns.
2. Low Management:

Lower expense ratios due to passive management.
Limited scope for beating the market.
3. Market Volatility:

Performance tied to the market index.
Susceptible to market downturns.
IT Sector Performance
1. Growth Potential:

IT sector shows strong growth.
High potential for long-term gains.
2. Volatility:

IT stocks can be volatile.
Sector-specific risks can impact returns.
Advantages of Actively Managed Funds
1. Higher Returns:

Actively managed funds aim to outperform indices.
Fund managers adjust based on market conditions.
2. Professional Management:

Expert fund managers make strategic decisions.
Better adaptability to market changes.
3. Diversification:

Actively managed funds can diversify across sectors.
Reduce risk by spreading investments.
Disadvantages of Index Funds
1. No Market Outperformance:

Index funds cannot beat the market.
Returns are limited to index performance.
2. Lack of Flexibility:

Fixed to the index composition.
Cannot adjust to market opportunities.
3. Sector Concentration:

Heavy exposure to one sector increases risk.
IT sector concentration may not be ideal for all investors.
Evaluation of Your Investment
1. Investment Horizon:

Your investment horizon is crucial.
Longer horizons can mitigate short-term volatility.
2. Risk Tolerance:

Assess your risk tolerance.
Higher risk tolerance suits IT sector investments.
3. Diversification Needs:

Diversify your portfolio to reduce risk.
Consider adding actively managed funds.
1. Stay or Switch:

If you have high risk tolerance and long horizon, stay invested.
For diversification and potential higher returns, switch to actively managed funds.
2. Regular Review:

Monitor your investment regularly.
Adjust based on market performance and personal goals.
3. Seek Professional Advice:

Consult a Certified Financial Planner (CFP).
Get personalized recommendations.
Final Insights
Your investment in Nippon India Nifty IT Index Fund has potential but consider diversifying. Actively managed funds can offer higher returns and better risk management. Regularly review and seek professional advice for optimal results.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,


...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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