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Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 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 - Jun 13, 2024Hindi
Money

Hello Sir, I am 37 years old and my wife is 35 years old and 1.5 year old daughter. We both collectively earn 305000 Per Month after taxes (Private Job) I have an active home loan of total outstanding of 51 lakh out of 80 lakh (taken 2.5 years back) and currently I am paying 81000 EMI towards that. I have already made repayment of approximately 20 lakh in the past 18 months. Total loan tenure left is around 7.5 years. I have a loan from family members (non interest) 8 lkh which can be repaid as per flexibility. I have 4 LIC Polices for which I am paying 110000 annually and One HDFC ulip plan which is 15K annual. I have approximately 20 lakh in savings (all FDs), we have collective PF balance of 8 lakh and recently I have started investing in mutual funds SIP details are as following 10K SIP - Axis Mid Cap 5K SIP - Axis small Cap 5K SIP - HDFC mid Cap opportunity 2K SIP - Axis Multi Cap I would need your suggestion on how to meet my personal financial goal of 3.5 cr in the next 15 years. I want to make sure I will have substantial funds in hand for My child's education/ Marriage and something for own when we retire. Please advise. Thank you

Ans: Your combined monthly income is Rs 3,05,000, which is quite commendable.

You have an outstanding home loan of Rs 51 lakh with an EMI of Rs 81,000.

You also have a loan from family members amounting to Rs 8 lakh.

Additionally, you are paying Rs 1,10,000 annually for four LIC policies and Rs 15,000 annually for an HDFC ULIP plan.

Your savings include Rs 20 lakh in fixed deposits and a collective PF balance of Rs 8 lakh.

You have recently started SIP investments in mutual funds.

Evaluating Your SIP Investments
Your current SIP investments are:

Rs 10,000 in Axis Mid Cap
Rs 5,000 in Axis Small Cap
Rs 5,000 in HDFC Mid Cap Opportunity
Rs 2,000 in Axis Multi Cap
These investments are diversified but predominantly focused on mid and small-cap funds. Mid and small-cap funds can provide high returns but are also high-risk.

The Importance of Diversification
Diversification helps manage risk by spreading investments across various asset classes.

Considering your goals and current portfolio, it’s essential to have a balanced mix of equity, debt, and other investments.

Recommendations for Your LIC Policies and ULIP Plan
You have four LIC policies and one HDFC ULIP plan.

These traditional insurance products often provide low returns compared to mutual funds.

Consider surrendering these policies and reinvesting the amount in mutual funds for better growth.

Balancing Your Loan Repayments and Investments
You have an outstanding home loan and a family loan.

Your home loan EMI is substantial.

It's crucial to balance loan repayments with investments.

Focus on clearing high-interest debts first while maintaining regular investments.

Building a Comprehensive Investment Portfolio
To achieve your goal of Rs 3.5 crore in 15 years, a strategic investment plan is essential. Here’s a suggested approach:

1. Equity Mutual Funds
Increase your allocation to large-cap and multi-cap funds for stability and consistent growth.

Consider actively managed funds for potential higher returns compared to index funds.

2. Debt Funds
Include debt funds in your portfolio to provide stability and regular income.

3. Hybrid Funds
Hybrid funds balance equity and debt, offering moderate risk and returns.

4. SIPs
Continue with SIPs for disciplined investing.

Consider increasing your SIP amount gradually as your income grows.

Reviewing and Adjusting Your Portfolio
Regularly review your portfolio and adjust based on market conditions and life changes.

Consult a Certified Financial Planner for personalized advice.

Planning for Your Child’s Education and Marriage
Education and marriage are significant expenses.

Start a dedicated investment plan for these goals.

Consider child education plans or SIPs in diversified equity funds.

Preparing for Retirement
Retirement planning is crucial.

Aim to build a corpus that provides a monthly income post-retirement.

Consider a mix of equity and debt funds to balance growth and stability.

Maximizing Your EPF and PPF
Your collective PF balance is Rs 8 lakh.

Continue contributing to EPF and PPF for long-term, tax-efficient growth.

Emergency Fund
Ensure you have an emergency fund covering 6-12 months of expenses.

Keep this fund in a liquid or short-term debt fund for easy access.

Health Insurance
Adequate health insurance is vital.

Ensure your family has sufficient coverage.

Consider increasing your cover if needed.

Steps to Achieve Your Financial Goals
1. Increase SIPs Gradually
As your income increases, raise your SIP contributions.

2. Diversify Investments
Balance your portfolio with equity, debt, and hybrid funds.

3. Regularly Review
Monitor and adjust your investments periodically.

4. Seek Professional Advice
Consult a Certified Financial Planner for tailored advice.

Conclusion
Your financial journey is unique, and achieving your goals requires a balanced, disciplined approach.

Prioritize clearing high-interest debts, diversify your investments, and regularly review your portfolio.

With careful planning and consistent efforts, you can secure your financial future and achieve your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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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Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

Asked by Anonymous - May 09, 2024Hindi
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Money
Hi! I am a 23 year old female. I earn 1.12 lakhs/month before taxes as salary. I am only earning individual at my home. We have a house loan of 38 lakhs of 18 years that almost started 5 years ago. We used to pay 29k EMI on a loan of 28 lakhs initially but after my father's business faced huge losses, we took additional 10 lakhs loan and after defaulting on EMIs and taking a 9 month break in between, we finally pay 45k EMI on 38 lakhs loan. I have different SIPs of 9k amount that after 3-5 years would mature. For example, in one SIP I pay 5k/month. So after 5 years I would get (300000 + 60000 bonus) on it. I have to pay monthly expense of 10k/month and I pay back a few more lenders amounting to 15k/month. After all the expenses I save almost 25-30k/month. I have around 2.5 lakhs in savings. I want to save a minimum of 10-15 lakhs in 2-3 years for my marriage and family. Can you suggest how should I start my financial planning/what investments can I do to have good returns (I'm a medium risk-taker) in next 2-3 years so I can start building my family's future and have a plan for paying off the loans?
Ans: Assessing Your Current Financial Situation

Before diving into financial planning, let's assess your current financial situation. You're 23, earning a substantial monthly salary of 1.12 lakhs before taxes. However, it seems you're facing some financial challenges, primarily due to your family's housing loan and previous business losses. Your EMI for the housing loan has increased to 45k/month after additional borrowing and a break in payments.

You've also mentioned various SIPs, monthly expenses of 10k, and repayment of other lenders amounting to 15k/month. Despite these commitments, you manage to save around 25-30k/month, which is commendable.

Setting Financial Goals

Your primary financial goal is to save 10-15 lakhs in the next 2-3 years for your marriage and family. Additionally, addressing the housing loan and building a secure financial future for your family are crucial objectives.

Creating a Financial Plan

Emergency Fund:
Start by building an emergency fund to cover unexpected expenses. Aim to save at least 6-12 months' worth of living expenses, considering your family's financial situation. Keep this fund in a liquid and accessible account.

Repaying High-Interest Debt:
Prioritize paying off high-interest debt, such as personal loans or credit card debt, to reduce financial burden and interest expenses. Since you're saving a significant portion of your income, allocate a portion towards accelerating debt repayment.

Optimizing Investments:
Given your medium risk tolerance, consider a balanced investment approach. Diversify your portfolio across various asset classes, including equity, debt, and possibly real estate.

Equity Investments: Since you have a relatively short investment horizon of 2-3 years, consider equity mutual funds with a blend of large-cap, mid-cap, and balanced funds. These can potentially offer higher returns while managing risk.

Debt Investments: Given the stability they offer, consider investing in debt mutual funds or fixed-income securities. These can provide steady returns and help balance the overall risk in your investment portfolio.

Real Estate: While you haven't mentioned real estate as an investment option, it's worth considering for long-term wealth accumulation. However, ensure thorough research and due diligence before investing in property.

Systematic Investment Plans (SIPs):
Continue with your existing SIPs, as they provide a disciplined approach to investing. However, reassess the funds you're investing in to ensure they align with your financial goals and risk tolerance. Aim for a diversified portfolio of SIPs to mitigate risk.

Budgeting and Expense Management:
Review your monthly expenses and look for areas where you can potentially reduce costs. Redirect the saved amount towards your savings and investment goals. Additionally, consider discussing financial responsibilities and budgeting with your family to collectively manage expenses.

Seeking Professional Guidance:
Consider consulting with a Certified Financial Planner to tailor a financial plan that aligns with your goals and risk profile. They can provide personalized advice and guidance to optimize your financial journey.

Conclusion

In summary, building a solid financial plan requires a systematic approach, goal setting, and disciplined execution. By focusing on building an emergency fund, repaying high-interest debt, optimizing investments, and managing expenses, you can work towards achieving your short-term and long-term financial goals. Remember, consistency and patience are key virtues in the journey towards financial security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Asked by Anonymous - Jun 23, 2024Hindi
Money
Hello Sir, I am 37 years old and my wife is 35 years old and we have 1.5 year old daughter. We both collectively earn 305000 Per Month after taxes (Private Job) I have an active home loan of total outstanding of 51 lakh out of 80 lakh (taken 2.5 years back) and currently I am paying 81000 EMI towards that. I have already made repayment of approximately 20 lakh in the past 18 months. Total loan tenure left is around 7.5 years. I have a loan from family members (non interest) 8 lkh which can be repaid as per flexibility. I have 4 LIC Polices for which I am paying 110000 annually and One HDFC ulip plan which is 15K annual. I have approximately 20 lakh in savings (all FDs), we have collective PF balance of 8 lakh and recently I have started investing in mutual funds SIP details are as following 10K SIP - Axis Mid Cap 5K SIP - Axis small Cap 5K SIP - HDFC mid Cap opportunity 2K SIP - Axis Multi Cap. After my monthly expenses, I am left with 1 lakh in hand monthly. I would need your suggestion on how to meet my personal financial goal of 3.5 cr in the next 15 years. I want to make sure I will have substantial funds in hand for My child's education/ Marriage and something for own when we retire. Please advise. Thank you
Ans: Understanding Your Financial Situation
Income and Expenses
Monthly income: Rs 3,05,000 (after taxes).
Monthly expenses: Rs 2,05,000, leaving Rs 1,00,000 in hand.
Current Liabilities
Home loan: Rs 51 lakhs outstanding, Rs 81,000 EMI, tenure left: 7.5 years.
Family loan: Rs 8 lakhs, no interest, flexible repayment.
Current Investments
Savings (FDs): Rs 20 lakhs.
Collective PF balance: Rs 8 lakhs.
LIC policies: Rs 1,10,000 annually.
HDFC ULIP plan: Rs 15,000 annually.
SIPs: Rs 10,000 in Axis Mid Cap, Rs 5,000 in Axis Small Cap, Rs 5,000 in HDFC Mid Cap Opportunity, and Rs 2,000 in Axis Multi Cap.
Financial Goals
Goal: Rs 3.5 crores in 15 years for child's education/marriage and retirement.
Evaluating Your Investment Strategy
Current SIPs and Mutual Funds
Investing in mutual funds through SIPs is a wise decision for long-term growth.
Axis Mid Cap, Axis Small Cap, HDFC Mid Cap Opportunity, and Axis Multi Cap are good choices.
Consider diversifying your portfolio to include more funds from different categories.
LIC Policies and ULIP
LIC policies provide insurance but may offer lower returns compared to mutual funds.
ULIP plans combine insurance with investment but often have higher charges.
Evaluate the performance of these policies and consider if reallocating to mutual funds is beneficial.
Savings and Fixed Deposits
Rs 20 lakhs in FDs is a safe but low-return investment.
Consider moving a portion to higher-return instruments like mutual funds.
EPF and PPF
EPF balance of Rs 8 lakhs provides safety and tax benefits.
Continue contributing to EPF for long-term growth and security.
Strategy to Meet Financial Goals
Increasing SIPs
With Rs 1,00,000 left after expenses, you can increase your SIPs.
Prioritize mutual funds with a mix of large-cap, mid-cap, and multi-cap funds.
Aim to invest at least Rs 50,000 monthly in mutual funds.
Diversifying Mutual Funds
Diversify across equity, debt, and hybrid funds to balance risk and return.
Consider adding funds from different AMCs for better risk management.
Reviewing Insurance Policies
Review your LIC policies and ULIP plan.
If returns are not satisfactory, consider surrendering and reallocating to mutual funds.
Ensure you have adequate term insurance for life coverage.
Managing Liabilities
Home Loan
Focus on repaying the home loan to reduce interest burden.
With an Rs 81,000 EMI, prioritize repayment within the next 7.5 years.
Use bonuses or extra savings to make lump-sum repayments.
Family Loan
Flexible repayment terms allow you to prioritize other liabilities first.
Repay the family loan gradually as your financial situation improves.
Emergency Fund
Maintain an emergency fund to cover at least 6 months of expenses.
This ensures financial stability in case of unexpected events.
Long-Term Investment Strategy
Power of Compounding
Regular SIPs in mutual funds leverage the power of compounding.
Over 15 years, consistent investments can grow significantly.
Stay invested and avoid withdrawing prematurely.
Reviewing and Rebalancing
Regularly review your portfolio to ensure it aligns with your goals.
Rebalance periodically to maintain the desired asset allocation.
Tax Planning
Utilize tax-saving instruments like ELSS funds for better returns and tax benefits.
Continue contributing to EPF for additional tax savings.
Children's Education and Marriage
Start dedicated SIPs for your child's education and marriage.
Consider child-specific mutual funds or equity funds with a long-term horizon.
Final Insights
Stay Disciplined
Consistency in investing is key to achieving long-term goals.
Avoid timing the market and stay focused on your financial objectives.
Professional Guidance
Consulting a Certified Financial Planner (CFP) can provide personalized advice.
A CFP can help optimize your investment strategy and ensure you stay on track.
Long-Term Perspective
Keep a long-term perspective and avoid making decisions based on short-term market fluctuations.
The power of compounding works best with patience and regular investing.
Financial Security
By managing liabilities and investing wisely, you can achieve financial security.
Your disciplined approach will help you reach your financial goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

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

Asked by Anonymous - Jul 11, 2024Hindi
Money
rediff.com Rediff Gurus Logo Hi Tarun Raj | Sign Out HealthHealth MoneyMoney RelationshipRelationship CareesCareer Ask your questions about health, money, relationship or careers here Ask Anonymously Tarun Tarun 1 Questions 1 Answers 0 Gurus 0 Bookmarks These questions will be answered soon. Not Answered yet Tarun Asked on - Jun 13, 2024 Hello Sir, I am 37 years old and my wife is 35 years old and 1.5 year old daughter. We both collectively earn 305000 Per Month after taxes (Private Job) I have an active home loan of total outstanding of 51 lakh out of 80 lakh (taken 2.5 years back) and currently I am paying 81000 EMI towards that. I have already made repayment of approximately 20 lakh in the past 18 months. Total loan tenure left is around 7.5 years. I have a loan from family members (non interest) 8 lkh which can be repaid as per flexibility. I have 4 LIC Polices for which I am paying 110000 annually and One HDFC ulip plan which is 15K annual. I have approximately 20 lakh in savings (all FDs), we have collective PF balance of 8 lakh and recently I have started investing in mutual funds SIP details are as following 10K SIP - Axis Mid Cap, 5K SIP - Axis small Cap, 5K SIP - HDFC mid Cap opportunity, 2K SIP - Axis Multi Cap. My monthly expenses are around 50000, I would need your suggestion on how to meet my personal financial goal of 5 cr in the next 15 years. I want to make sure I will have substantial funds in hand for My child's education/ Marriage and something for own when we retire. Please advise. Thank you
Ans: Firstly, I commend you for your diligent savings and the significant repayment on your home loan. Managing your finances with a young child and planning for the future requires foresight and discipline, which you have demonstrated well.

Let's break down your current financial status:

Income: Rs 3,05,000 per month (combined).

Home Loan: Outstanding Rs 51 lakhs with an EMI of Rs 81,000.

Family Loan: Rs 8 lakhs (interest-free).

Insurance Premiums: Rs 1,10,000 annually for LIC policies and Rs 15,000 for HDFC ULIP.

Savings: Rs 20 lakhs in fixed deposits.

Provident Fund: Rs 8 lakhs combined.

Mutual Funds SIP: Rs 22,000 per month.

Monthly Expenses: Rs 50,000.

You aim to build a corpus of Rs 5 crores in 15 years for your child's education, marriage, and your retirement. Given your income and expenses, this goal is attainable with strategic financial planning.

Optimizing Existing Investments
Review Insurance Policies
You have four LIC policies and one HDFC ULIP plan. While insurance is crucial, these traditional and ULIP policies often provide lower returns compared to mutual funds. Consider the following steps:

Surrender or Convert: Evaluate the surrender value of these policies. It may be beneficial to surrender them and redirect those funds into higher-yielding investments.

Reinvest Premiums: The Rs 1,25,000 annual premium can be reinvested into mutual funds for better returns.

Utilizing Fixed Deposits
You have Rs 20 lakhs in fixed deposits. While FDs are safe, their returns are usually lower than inflation. To grow your wealth, consider the following:

Partial Liquidation: Keep a portion in FDs for emergency funds, but reinvest a significant amount into mutual funds or other higher-yielding instruments.
Strengthening Your Investment Portfolio
Increasing Mutual Fund SIPs
Your current SIPs total Rs 22,000 per month. To reach your Rs 5 crore goal, consider increasing your SIP contributions. Here’s how:

Diversify: Ensure your portfolio has a mix of large-cap, mid-cap, small-cap, and multi-cap funds for balanced growth and risk management.

Step-Up SIPs: Gradually increase your SIP contributions as your income grows. This will help in compounding returns significantly.

Investing in Mutual Funds
Actively managed mutual funds can provide better returns compared to index funds. Here are the benefits:

Active Management: Professional fund managers actively manage these funds, seeking to outperform the market.

Flexibility: Actively managed funds can adjust their portfolio based on market conditions, potentially offering higher returns.

Debt Management
Home Loan Strategy
You have an outstanding home loan of Rs 51 lakhs. Managing this effectively can save you significant interest costs:

Prepay Principal: Use part of your fixed deposits to make lump sum prepayments. This reduces the principal and interest burden.

Reduce EMI or Tenure: Opt to reduce your loan tenure if possible. A shorter tenure can save you substantial interest.

Family Loan Repayment
The Rs 8 lakh family loan is interest-free, giving you repayment flexibility. Prioritize this after addressing high-interest debt and maximizing investments.

Planning for Child's Education and Marriage
Child Education Fund
Start a dedicated investment for your child's education:

Separate SIP: Initiate a separate SIP specifically for education expenses. Estimate future costs and adjust contributions accordingly.

Education Savings Plan: Consider child education plans offered by mutual funds that align with your goals.

Child Marriage Fund
Similarly, plan for your child's marriage:

Long-Term SIP: Start a long-term SIP focused on this goal. Utilize the power of compounding to grow your corpus.
Building Retirement Corpus
Systematic Investment Plan (SIP)
Increase your SIP contributions towards retirement:

Retirement Fund SIP: Set up a separate SIP for retirement, ensuring it aligns with your risk tolerance and time horizon.

Diversify: Include a mix of equity, debt, and hybrid funds for balanced growth and stability.

Provident Fund
Continue contributing to your provident fund. It provides a stable and secure component of your retirement corpus.

Emergency Fund
Maintaining an emergency fund is crucial. Here’s how to build and manage it:

Liquid Funds: Keep a portion of your fixed deposits in liquid mutual funds. They offer better returns than savings accounts and are easily accessible.

3-6 Months Expenses: Ensure your emergency fund covers 3-6 months of your living expenses, including EMIs.

Evaluating and Adjusting Your Plan
Regular Reviews
Financial planning is not a one-time activity. Regularly review and adjust your investments based on market conditions and life changes:

Annual Review: Conduct an annual review with a certified financial planner to ensure your investments are on track.

Adjust SIPs: Adjust your SIP contributions based on changes in income and expenses.

Risk Management
Ensure your investment portfolio aligns with your risk tolerance:

Diversification: Spread investments across various asset classes to mitigate risk.

Insurance: Maintain adequate life and health insurance to protect against unforeseen events.

Final Insights
Your goal of Rs 5 crores in 15 years is ambitious yet achievable with disciplined planning and strategic investments. By optimizing your current investments, increasing SIP contributions, and regularly reviewing your plan, you can secure a substantial corpus for your child's education, marriage, and your retirement.

Focus on diversifying your investments, managing debt efficiently, and maintaining an emergency fund. With consistent efforts and a clear strategy, you will be well-prepared for a financially secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 14, 2025
Money
Hi, I'm 34 years. I've a home loan of 48L emi is 50k (home loan pending tenure is 13years)... my net salary in hand is 1.3L. currently I don't have much monthly exp as I live in joint family n I have good control on my exp.. - My monthly investments are MF sip 30k, NPS 3K, ICICI child gift ulip plan 4K monthly for 5years, Bajaj retirement goal III ulip plan monthly 5k for 10years, LIC premium monthly 5K. And I pay extra Home loan pricipal monthly 12k.. -I've other investments 10fd, MF around 21L, equity stock around 17L, PPF 10L, NPS 2L, SGB 1L, suknya account 1.3L, .. 1) What you suggest shall I continue the my MF sips and other investments? 2) shall I increase monthly home loan prepayment from 12k by reducing monthly MF sips ? 3) guide am I in right direction in order to have retirement fund at the age of 50-55 ? 4) In future I'll have the exp of my two kids marriage and educational exp (they're now 2years) 5) Is child plan good? Shall I continue? 7) Also I'm planning to have another house (in year 2029-2034) which will cost nearly 1.7cr. currently the house for which loan is taken sale value is approx 70-75L..
Ans: At 34, you are doing many good things.

You live within your means and invest well.

Still, you asked the right questions.

Let us go step by step.

This answer will be simple but deep.

We will assess from a 360-degree angle.

Let us now begin.

Income, Loan and Lifestyle Assessment

Your net monthly salary is Rs. 1.3 lakh.

Your current EMI is Rs. 50,000. This is almost 38% of your income.

You pay Rs. 12,000 extra as home loan prepayment.

Your total home loan outflow is Rs. 62,000 per month.

You have strong cost control because you live in a joint family.

That is a big plus at this age. Keep it up.

Your current lifestyle gives you surplus money. That is a strength.

Do not let lifestyle inflation spoil this later.

Review of Your Ongoing Monthly Investments

SIP in mutual funds: Rs. 30,000 monthly. This is a good habit.

NPS contribution: Rs. 3,000 per month. But NPS has lock-in and limited flexibility.

LIC: Rs. 5,000 monthly. LIC policies mostly offer low returns.

ICICI child ULIP: Rs. 4,000 monthly. ULIPs are not cost-effective.

Bajaj Retirement ULIP: Rs. 5,000 monthly. Also not efficient.

You are paying Rs. 17,000 per month towards ULIP and LIC combined.

This money can earn more if invested in mutual funds.

ULIP and LIC Policies: Need Review

ULIP plans have high costs and complex structures.

They mix insurance and investment. That is never a smart idea.

LIC plans also give low returns (around 5-6% only).

Instead of continuing for full term, check surrender value now.

You may stop future payments after checking terms.

A Certified Financial Planner can assist in evaluating surrender wisely.

That money should be moved to mutual funds via SIP.

Assessment of Mutual Fund Investments

SIP of Rs. 30,000 monthly is excellent. Continue it.

You already have Rs. 21 lakh in mutual funds. That is solid.

Don't reduce SIP to increase home loan prepayment.

Mutual funds help build wealth faster than home loan savings.

Prepayment gives 8.5% benefit (loan rate).

But mutual funds (active ones) can give 12-14% over long term.

So reducing SIPs to prepay loan is not wise.

Continue SIPs. Increase them if income increases.

PPF, NPS and SGB – Conservative, Yet Useful

PPF: Rs. 10 lakh. Tax-free and safe. Keep investing the max every year.

NPS: Rs. 2 lakh. Good for tax saving. But retirement corpus gets locked.

SGB: Rs. 1 lakh. Gold bonds are fine for partial diversification.

Use PPF more than NPS because of better flexibility.

FDs and Stocks – Balancing Safety with Growth

You have Rs. 10 lakh in fixed deposits. Good for emergency or short-term needs.

Equity stocks: Rs. 17 lakh. Shows you are growth-oriented.

Review stock portfolio once every 6 months.

Don’t hold stocks if you're unsure of their quality.

If needed, shift to mutual funds where experts manage the money.

Child ULIP Plans – Better to Avoid

These child ULIPs are sold emotionally, not financially.

High costs and limited transparency are common issues.

Returns are low due to charges.

For your kids’ education and marriage, mutual funds are better.

Start two SIPs – one for education and one for marriage.

Invest in multi-cap and flexi-cap mutual funds.

Keep increasing these SIPs as income grows.

Future Second Home Purchase – Evaluation Needed

You are planning to buy another house worth Rs. 1.7 crore.

Your current home value is Rs. 70–75 lakh.

Don’t look at second house as an investment.

Real estate brings risk, low liquidity and high maintenance.

If it's for self-use, then fine.

But for wealth creation, mutual funds are better.

Don’t take another big loan just for second house.

That can disturb cash flow and limit investments.

If needed, sell existing house and use that as down payment.

Debt vs Equity Thinking – Long-Term Wealth Needs Equity

You are still young. Just 34.

Retirement goal is 50–55. You still have 16–21 years.

Equity mutual funds help in wealth creation.

Debt products like FDs, PPF, NPS are safe but grow slowly.

So, most savings should go to equity mutual funds now.

Only emergency and near-term goals should use FDs or PPF.

Tax Efficiency – Optimise Your Structure

Income tax savings from home loan are fine.

NPS gives extra deduction under 80CCD(1B).

But ULIPs and LIC do not give long-term tax benefits.

Mutual funds are now taxed at 12.5% for long term.

Still, mutual funds offer better post-tax growth than LIC/ULIP.

Emergency Fund and Insurance Coverage

Keep 6 months’ expense in FD or savings as emergency fund.

Check if you have term life cover. Minimum Rs. 1 crore is needed.

Also check family medical insurance. Rs. 10–15 lakh cover is good.

Don’t mix insurance with investment. Keep both separate.

Action Plan: Clear, Simple and Step-by-Step

Continue your Rs. 30,000 SIP. Increase yearly if possible.

Review and surrender ULIPs and LIC if suitable.

Stop all future ULIP premiums. Redirect to mutual funds.

Don’t reduce SIPs to prepay loan. Let SIPs continue.

Make home loan prepayment only if surplus money is idle.

Start SIPs for child education and marriage.

Don’t go for second house as investment.

Review stocks and replace with mutual funds if not confident.

Maintain FDs for emergency, not as long-term investment.

Ensure term life and health cover are in place.

Update nominations and keep all documents organised.

Finally

Your financial journey has a strong start.

You have right habits and long-term thinking.

But your portfolio needs cleaning.

ULIPs and LIC are eating your returns quietly.

Your SIPs are your strongest weapon. Don’t pause them.

Buy house only if it’s for personal use, not wealth building.

Your retirement goal at 50–55 is achievable.

But only if equity investment continues and grows.

Children’s goals will come faster than you think.

Start SIPs now for them. Don’t depend on ULIPs.

You are on the right track. Just remove the low-return blocks.

Review regularly with a Certified Financial Planner.

That will help you move confidently, year after year.

Best Regards,

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

..Read more

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Career
Sir I got 68676 in comedk Can you suggest good colleges forCSE or CSE specialization
Ans: Ramya, With a COMEDK rank of 68,676 in 2025, you have viable options for admission to reputable engineering colleges in Karnataka for CSE and its specializations. You can confidently secure seats at numerous recognized institutions where the latest cutoffs range between 63,000 and 1,20,000 for core CSE and closely related specializations. Here are 15 colleges where admission is fully feasible: CMR Institute of Technology (Bangalore), Acharya Institute of Technology (Bangalore), Nitte Meenakshi Institute of Technology (Bangalore), Atria Institute of Technology (Bangalore), New Horizon College of Engineering (Bangalore), Dayananda Sagar College of Engineering (Bangalore), BNM Institute of Technology (Bangalore), Sapthagiri College of Engineering (Bangalore), Don Bosco Institute of Technology (Bangalore), AMC Engineering College (Bangalore), Cambridge Institute of Technology (Bangalore), East Point College of Engineering (Bangalore), Gopalan College of Engineering and Management (Bangalore), Rajarajeswari College of Engineering (Bangalore), and Sai Vidya Institute of Technology (Bangalore). These colleges routinely offer CSE and specializations such as Artificial Intelligence, Data Science, and Information Science, all supported by established infrastructure, diverse peer groups, faculty with advanced degrees, recognized accreditations, and campus-level placement cells. Their cut-off history ensures fair seat allocation for your current rank bracket.

Recommendation: Prioritize CMR Institute of Technology (Bangalore), Nitte Meenakshi Institute of Technology (Bangalore), Acharya Institute of Technology (Bangalore), Dayananda Sagar College of Engineering (Bangalore), and BNM Institute of Technology (Bangalore). This order is justified by established NIRF rankings, steady placement percentages (60–90% in CSE streams), modern campus amenities, regular project-based learning, and a proven track record of producing employable graduates across the IT sector in Karnataka and beyond. All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 17, 2025

Asked by Anonymous - Jul 17, 2025Hindi
Career
My son is getting civil at bits pilani + rmit 2+2 program and cse at vit-ap cat-2 What should we choose
Ans: The BITS Pilani + RMIT 2+2 Civil Engineering program offers an international dual-degree pathway, granting a B.E. from BITS Pilani and a Bachelor’s from RMIT Australia. Students complete two years at BITS Pilani—renowned for nearly 100% placement rates in core engineering and a prestigious reputation—then transfer to RMIT for global research exposure, advanced industry collaborations, and a second recognized degree. RMIT is a top-ranked university known for its employability outcomes and practical learning, and the dual-degree substantially enhances career prospects worldwide. VIT-AP’s Computer Science Engineering (CSE) program under Category 2 ensures placement rates above 90%, excellent infrastructure, and industry-aligned curriculum, with 1000+ recruiters participating and strong records in IT sector roles for CSE graduates. VIT-AP is lauded for hands-on learning, active placement cell, and opportunities in the fast-growing tech industry, making it a robust choice for software-focused careers. While VIT-AP CSE opens doors to IT and allied opportunities, BITS Pilani + RMIT provides unmatched exposure, global credentials, and broader professional mobility in engineering domains.

Recommendation: If your priority is global exposure, academic flexibility, and broad international opportunities in engineering and related fields, prioritize BITS Pilani + RMIT 2+2 Civil. Should your focus be on a strong software foundation and rapid industry integration in India’s tech sector, VIT-AP CSE is preferred. The BITS-RMIT program stands out for long-term value and international scope. All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 17, 2025

Career
SIR I should go for HBTU (IT) or IIIT VADODARA DIU CAMPUS (ELECTRONICS)?
Ans: Kritika, HBTU’s Information Technology program consistently records placement percentages between 85–90%, supported by a highly qualified faculty (many with PhDs from IITs and NITs) and a long-standing reputation for producing industry-ready graduates. The campus is equipped with advanced labs, updated digital resources, and maintains strong ties with top recruiters in IT and consulting sectors. Batch sizes are moderate, ensuring quality academic mentoring, and the supportive alumni network promotes career growth. In contrast, IIIT Vadodara Diu Campus (Electronics) is a newer institute, operating from a well-facilitated educational hub, but still developing its industry partnerships and placement support specifically for electronics; recent campus data showcase improving placements but with less consistency, and infrastructure is modern but evolving. The electronics branch here faces greater competition for high-tech positions compared to computer-related domains.

Recommendation: HBTU IT stands out for established placements, recognized industry connections, strong academic culture, and proven output in software-oriented careers. Unless you have a distinct passion for electronics or a compelling reason for preferring a satellite IIIT campus, HBTU IT offers the most reliable outcomes for both learning and employability. All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 17, 2025

Career
My son got IIT Dharwad B.S/M.S Interdisciplinary sciences and BITS Hyderabad Mechanical through BITSAT currently. He may have potential chances of getting NIT Warangal MnC/ECE or IIIT Delhi CSE through DASA. Which one is better in the order of preference
Ans: Venkata Sir, IIIT Delhi’s Computer Science Engineering (CSE) program is nationally recognized for its rigorous curriculum, 90–100% placement rate, leading industry connections, and high-impact research output, making it one of the best platforms for a technology-driven career. The program consistently attracts top recruiters and maintains strong alumni engagement in global tech sectors. NIT Warangal’s Mathematics and Computing (MnC) and Electronics and Communication Engineering (ECE) branches also offer strong academic grounding, modern labs, and recorded placement rates above 88% in core tech domains, with the ECE branch now routinely achieving average placement rates above 80% and MnC offering excellent flexibility for careers in data science, software, and analytics. BITS Hyderabad’s Mechanical Engineering program combines a tradition of academic excellence with research-oriented faculty, excellent infrastructure, and a placement percentage above 85% in recent years, while producing graduates who succeed in both core and tech industries and pursue higher studies internationally. IIT Dharwad’s BS/MS Interdisciplinary Sciences is a new, innovative program focused on multidisciplinary skill development with exposure to advanced labs and faculty, but as a new course and newer IIT, it does not yet match the placement rates or alumni reach of the other institutes; its placement rate hovers near 70% and career paths are diverse, with greater emphasis on research and interdisciplinary skills rather than direct tech sector placement.

Recommendation: The optimal order is IIIT Delhi CSE (for career, placements, tech flexibility), NIT Warangal MnC/ECE (for academic reputation and solid placements in both analytics and electronics), BITS Hyderabad Mechanical (for reputable core engineering, good placements, and global exposure), and finally IIT Dharwad BS/MS Interdisciplinary Sciences (for those pursuing interdisciplinary research but less certainty in direct placements). All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 17, 2025

Career
Sir I have scored 83 percentile in MHT cet 2025 what are the best college option for me in Mumbai region
Ans: Aryan, With an 83 percentile in MHT-CET 2025 as a Maharashtra domicile General Category student, you are eligible for BTech admission to several well-regarded engineering colleges in the Mumbai region, excluding the most competitive ones like COEP, VJTI, and ICT, which have significantly higher cutoffs. The following colleges in Mumbai provide feasible admission opportunities based on previous years' cutoffs and are recognized for their reliable placement support, modern infrastructure, NBA/NAAC accreditation, and industry-aligned programs: Sardar Patel Institute of Technology (Andheri), K J Somaiya Institute of Technology (Sion), Vidyalankar Institute of Technology (Wadala), Fr. Conceicao Rodrigues Institute of Technology (Vashi), Xavier Institute of Engineering (Mahim), Bharati Vidyapeeth College of Engineering (Navi Mumbai), SIES Graduate School of Technology (Nerul), Ramrao Adik Institute of Technology (Navi Mumbai), St. Francis Institute of Technology (Borivali), Rajiv Gandhi Institute of Technology (Versova), Don Bosco Institute of Technology (Kurla), Shah & Anchor Kutchhi Engineering College (Chembur), MGM’s College of Engineering (Kamothe, Navi Mumbai), Atharva College of Engineering (Malad), and Pillai College of Engineering (New Panvel). Across these institutions, your score is within the realistic admission range for most branches, including Mechanical, Civil, Electronics/EXTC, and sometimes Information Technology or Computer Science, depending on current year trends and final branch cutoffs; official college portals and admission records substantiate this eligibility for the 2025 cycle.

Recommendation: For optimal academic and professional growth, consider Sardar Patel Institute of Technology (Andheri), K J Somaiya Institute of Technology (Sion), Vidyalankar Institute of Technology (Wadala), Fr. Conceicao Rodrigues Institute of Technology (Vashi), and Ramrao Adik Institute of Technology (Navi Mumbai) as the highest-priority choices. These colleges offer robust campus infrastructure, industry recognition, strong placement networks, and a history of producing successful engineering graduates. All the BEST for Admission & a Prosperous Future!

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Career Counsellor - Answered on Jul 17, 2025

Career
Sir, Which would batter choice between my doughter got EE in vlsi Design at Banasthali vidyapeeth and recently also got CSE in Goverment Mahila Engineering College, Ajmer. Which would better ? Suggest
Ans: Amit Sir, Banasthali Vidyapith’s Electrical Engineering program with a focus on VLSI Design is anchored in a reputed women’s university with A++ NAAC accreditation, robust faculty credentials, industry tie-ups, and consistent placement rates of 90–95% for core branches, often in electronics and automation sectors. Campus infrastructure is comprehensive, research exposure is strong, and students benefit from a national network and notable institutional rankings. Government Mahila Engineering College Ajmer’s CSE branch is part of a government-run, well-recognized institution with modern teaching resources, 80–95% placement rates for computer science in recent years, accessible industry partnerships, and a track record of sending students to reputed recruiters such as Amazon and Microsoft. The Ajmer campus is lauded for its faculty, student activities, digital facilities, and supportive environment, though its national brand is less established than Banasthali’s.

Recommendation: If your daughter is passionate about electronics, VLSI, or hardware-oriented careers, Banasthali Vidyapith offers a stronger national reputation, longstanding placement consistency, and higher institutional ranking. For a broad, flexible technology career in software, Government Mahila Engineering College Ajmer CSE stands out for contemporary opportunities and direct industry links. Both paths assure solid outcomes, but branch preference should drive the final choice. All the BEST for Admission & a Prosperous Future!

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