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Sunil

Sunil Lala  |157 Answers  |Ask -

Financial Planner - Answered on Feb 04, 2023

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Asked by Anonymous - Jan 31, 2023Hindi
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Sunil Sir, What is better, buying a house or investing in mutual funds?

Ans: If you are buying second home than investment in Mutual Funds would be a better choice
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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Ulhas

Ulhas Joshi  |249 Answers  |Ask -

Mutual Fund Expert - Answered on Mar 06, 2023

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Sir, I am 27 years old and my goal is to buy house of 1 cr after 5 years and collect good amount of money for its down payment at least 50% of it I am planning to start following sip HDFC nifty 50 index fund -15000 HDFC nifty next 50 index fund -15000 Canara robecco ELSS fund -4000 Quant tax plan direct growth -4000 Canara robecco small cap fund-2500 Quant small cap/axis small cap fund -2500 Should I invest more than above specified in funds . Please comment on selection of mutual fund and amount and changes in fund and amount to achieve goal. Thankyou in anticipation.
Ans: Hi Murgendra, thank you for writing in.

I notice you are currently investing around 70% of your funds in index funds, HDFC Nifty 50 & HDFC Nifty Next 50. With this, your portfolio returns will mostly mirror index returns.

You can consider investing Rs.10,000 in HDFC Nifty 50 Index Fund and Rs.10,000 in HDFC Nifty Next 50 Index Fund & invest the balance Rs.10,000 as follows:
1-SBI Magnum Midcap Fund-Growth Rs.5,000
2-Franklin India Smaller Companies Fund- Growth Rs.5,000

This will give you more midcap and smallcap exposure that have the potential to outperform the index and help you generate higher returns.

To create a corpus of Rs.50 Lakh in 5 years, you will need to invest around Rs.60,500 per month, that is increase your SIP’s by Rs.17,500. You need not invest in any new schemes, but simply increase the SIP amounts in the same proportion.

Annual step ups of around 10% will help you achieve your goals faster.
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Sanjeev

Sanjeev Govila  |453 Answers  |Ask -

Financial Planner - Answered on Dec 25, 2023

Asked by Anonymous - Dec 16, 2023Hindi
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Hi, I'm 31 years old and married. She is a housewife. I have about 30 lakhs in FDs and PPFs. I have loan-free farm land of 35 lakhs, highway touch, which yields only 20k per year in rent right now. I have home loan of 38 lakhs with 33500 EMI. I have just recently started investing in MFs with SIP of 9000 per month in 5-6 different funds comprising of large cap, mid cap, small cap, dividend yield and I want to increase it. I only prefer equity oriented funds because of its higher returns as compared to debt funds as I already have enough FDs to play safely and thus I avoid debt funds. I know I have enough years to gather large corpus till age 60. But right now, please suggest me how much (or how much more) and where should I invest Rs.50000 per month (savings of my salary after all expenses per month) so that I earn exactly Rs.1 lakh per month from all my investments (passive income) in exactly 5 years from now. Also, I wonder if I should pay off my home loan or not coz one side is that currently I avail tax return on interest component upto 3.5 lakhs but the other side is that paying off home loan will lessen my mental burden. So sir, please share your valuable opinion om both these points.
Ans: To be honest, increasing your SIP to 50,000 per month would only accumulate around 40 lakhs in five years. While this might allow you to withdraw 1 lakh per month through a Systematic Withdrawal Plan (SWP), this income stream would only last for four years, as the underlying corpus wouldn't be large enough to sustain it for a decade.

On your investment, we recommend sticking with your diversified SIPs and maybe exploring some specific funds for that extra growth potential. But remember, balance is the key. To counter market volatility and generate some regular income, consider putting 20-30% of your additional investment into hybrid or balanced funds.

You can review your FD allocations to find a sweet spot between higher returns and keeping some available cash for contingency purpose.

Talking about the home loan, weighing the tax benefit with the mental freedom of paying it off is a personal decision. You should compare different scenarios based on your tax bracket, new and old tax regime, and future income growth and future plans. Based on analysis you can consider a partial prepayment to reduce the loan tenure and interest.
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Moneywize

Moneywize   |82 Answers  |Ask -

Financial Planner - Answered on Mar 28, 2024

Asked by Anonymous - Mar 21, 2024Hindi
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What is comprehensive auto insurance policy? What are its benefits? What are the inclusions and non-inclusions if I want to know before buying a comprehensive auto insurance policy?
Ans: A comprehensive auto insurance policy in India offers the most extensive coverage for your car and any third-parties involved in an accident. It's like a two-wheeler for your car's security, providing protection for both your vehicle and your wallet.

Benefits of a Comprehensive Policy:

1. Peace of mind: Covers a wide range of situations, so you'll be financially protected in case of many unforeseen events.

2. Own Damage Cover: Pays for repairs or replacement of your car if it's damaged in an accident, by fire, theft, natural calamities, riots, or even falls victim to vandalism.

3. Third-Party Liability Cover: Takes care of any legal or financial liabilities you incur if your car causes injury, disability or death to a third party, or damages their property.

4. Personal Accident Cover (Optional): Provides financial assistance to you or your family in case of injury or death due to a car accident (depending on the policy terms).

What to Consider Before Buying:

Inclusions:

a. Most accidents (collision, hit and run)

b. Theft (partial or complete)

c. Fire damage

d. Natural disasters (floods, earthquakes, etc.)

e. Riots, strikes, and other man-made calamities

g. Third-party property damage and bodily injury

h. Personal accident cover (if opted for)

Non-inclusions:

a. Damages due to wear and tear

b. Driving under the influence of alcohol or drugs

c. Mechanical or electrical breakdown

d. Depreciation on parts replaced during repairs

e. Using the car for illegal purposes

Additional Tips:

1. Add-on Covers: Enhance your policy with optional extras like engine protection or zero depreciation cover for a more comprehensive safety net.

2. Compare Quotes: Get quotes from different insurance companies to find the best coverage and price for your needs.

Remember, a comprehensive policy offers superior protection compared to third-party only insurance, which is mandatory by law but only covers your liability towards third parties. For a secure ride on Indian roads, a comprehensive policy is the way to go.
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Sushil

Sushil Sukhwani  |248 Answers  |Ask -

Study Abroad Expert - Answered on Mar 28, 2024

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My daughter did her graduation in November 2023 from a top-ranked university in Canada - University of British Columbia, Vancouver (QS World Rank within 35). She is interested in a job in the fields of Artificial Intelligence and related software domains. She graduated with an interdisciplinary BSc in Cognitive Systems, including several courses from Computer Science, Artificial Intelligence and Machine Learning, Neuroscience, etc.. Unfortunately, unlike in US universities, there's no Campus Placement facilities available in UBC and most Canadian universities. Please advise how to get into a job in this gloomy economic scenario, in Canada (USA is ruled out because OPT is not available for non-US university graduates).
Ans: Hello Indranil. Thanks for reaching out to us. Given your daughter's background in cognitive systems with coursework in computer science, Artificial Intelligence, Machine Learning and Neuroscience from a prestigious institution like the University of British Columbia (UBC), she has a strong base for having a career in AI and related fields. Although no campus placement is challenging, there are ways to find a job while keeping in mind the gloomy economic condition.

1. Encourage your daughter to leverage her professional network, including alumni, professors, and industry contacts. Attending industry events, seminars, and meetups can provide valuable networking opportunities and help her connect with potential employers or mentors in the field of AI and software development.

2. An online presence, such as having an account on LinkedIn, is important. She can showcase her skills and achievements—both academic and extracurricular—so far, reach out to professionals,etc

For further assistance, you can get in touch with us
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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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