I am 38 year old single female. My per month earning is 1 Lakh 78thnd. I have not done any investment till date but also I have no savings due to some unfortunate circumstances. But now I have space to do investment. I need a guidance. I have done the investment in LIC life insurance of 1 Lakh Pension plan amount is minimum 450 rs monthly Can you suggest what investment incan do so it can help me after 20 years.

Ans: Hello Krishna Priya,

First and foremost, thank you for getting in touch with us. To answer your question first, I would like to tell you that obtaining a Master's degree in Physiotherapy (MSc Physiotherapy) in the UK post the completion of a Bachelor of Science (BSc) in Medicine is a typical route for further specialization in the subject.

Renowned for its extensive clinical instruction and academic stringency, this course generally takes 2 years to complete. Your knowledge and abilities in physiotherapy will improve as a result, resulting in possibilities for advanced practice and specialization.

Concerning your query pertaining to expenses, I would like to tell you that based on the university and length of the program, the cost of pursuing a Master's in Physiotherapy in the UK can differ to a great extent.

Next, concerning employment opportunities, physiotherapy is a licensed profession in the UK, which implies that post earning your MSc and registering with the Health and Care Professions Council (HCPC), you can work as a physiotherapist.

You will be glad to know that employment prospects in physiotherapy are generally good, particularly in settings viz., hospitals, sports rehabilitation centers, clinics, and private practice.

All in all, studying a Master’s degree in Physiotherapy in the UK can be a wise investment in your career, providing both educational enhancement and improved career prospects in the field of physiotherapy.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

Ans: Hello,

First and foremost, thank you for getting in touch with us. I am happy to know that your son is currently pursuing the final year of his Bachelor of Technology in Civil Engineering. Concerning your query as to whether your son can get admission for MS in CS, I would like to let you know that given your son’s strong academic background and a CS minor, he can surely secure admission to an MS program in Computer Science in the USA. To assist in alleviating some of the expenses, assistantships, scholarships, or on-campus jobs may be available. In order to enhance his chances of receiving financial assistance, I would suggest that your son applies for these opportunities in advance.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

Ans: Hello Dr,

Firstly, thank you for contacting us. Given your daughter's goal of pursuing a master's degree abroad with the intention of securing a job, I would suggest countries like the UK, USA, Canada and Australia. These countries offer a range of prestigious master's programs in architecture and have vibrant job markets for graduates. Additionally, they have post-graduation work visa opportunities that could facilitate her transition from study to employment.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on our Instagram page: @edwiseint

Ans: Hello,

First and foremost, thank you for reaching out to us. It is great that you wish to continue your further education abroad and even intend to get a PhD eventually. As I am sure you know, computer science is a highly lucrative field, particularly in emerging areas like AI and machine learning. The strong earning potential in this domain can significantly help with repaying any loans you might take on. Additionally you can also apply for scholarships which will significantly reduce the financial burden on your shoulders. It can be immensely valuable to talk with a professional who will help you carefully weigh the options available to you and guide you through the process of finding and applying to various universities and scholarships.

For more information, you can visit our website: edwiseinternational.com
You can also follow us on our Instagram page: @edwiseint

Ans: Hello,

To begin with, thank you for contacting us. I am glad to know that you have got an admission offer from the University of Manchester as well as from the University of Southern California. To answer your question first, I would like to tell you that both the programs have excellent reputations, nevertheless, the decision you make will depend on your professional objectives. On the one hand, the University of Southern California's MS in Computer Science with an emphasis on Artificial Intelligence may provide more specialized opportunities in that discipline, leading to chances in technology hotspots like Silicon Valley. On the other hand, the MSc in Advanced Computer Science offered by the University of Manchester could provide a more comprehensive foundation in computer science with a strong global outlook.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

Ans: Importance of Balancing Safety and Returns
As a senior citizen, safety and regular income are crucial when choosing investments.

High returns are attractive, but the safety of capital is equally important. Balancing both can be challenging but achievable.

Investments should also provide liquidity. This is necessary to meet unexpected expenses.

It’s vital to select instruments that offer stability, predictable returns, and minimal risk.

Fixed Deposits (FDs) for Stability
Fixed Deposits are one of the safest investment options. Banks and post offices offer these with guaranteed returns.

They provide a fixed interest rate, offering predictable income. This can be especially reassuring for senior citizens.

FDs come with flexible tenures, from a few months to several years. This allows you to align them with your financial needs.

Senior citizen FDs often offer a higher interest rate. This additional return can help in boosting your income.

However, while safe, the returns are moderate. Consider allocating a portion of your funds here for security.

Senior Citizen Savings Scheme (SCSS) for Regular Income
The Senior Citizen Savings Scheme (SCSS) is another safe and government-backed option. It offers a high interest rate, specifically designed for senior citizens.

The scheme has a tenure of five years, with the option to extend it by three years.

Interest is paid quarterly, providing a regular income stream. This can help meet your day-to-day expenses.

The investment limit is Rs. 15 lakh per individual. This limit ensures a significant portion of your savings can earn a stable return.

While SCSS offers safety and regular income, the returns are fixed. Therefore, it's wise to balance it with investments that have growth potential.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) for Guaranteed Pension
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens, offered by LIC.

This scheme guarantees a fixed return, with options for monthly, quarterly, or annual payouts.

The investment limit is Rs. 15 lakh per senior citizen, similar to SCSS.

The scheme has a tenure of 10 years, providing long-term income stability.

PMVVY is ideal for those looking for guaranteed income with minimal risk. However, the returns are capped, so consider diversifying your investments.

Monthly Income Schemes (MIS) for Steady Income
Monthly Income Schemes (MIS) are another reliable option. These schemes are available through post offices and certain banks.

They offer regular monthly income, ideal for covering recurring expenses.

MIS is government-backed, ensuring the safety of your investment.

The tenure is five years, with the possibility to reinvest upon maturity. This ensures continued income over time.

While safe, the interest rates may not keep pace with inflation. This makes it essential to complement MIS with growth-oriented investments.

Debt Mutual Funds for Conservative Growth
Debt Mutual Funds invest in fixed-income instruments like bonds and government securities. They are less volatile than equity funds.

These funds can offer better returns than traditional savings accounts or FDs. They also provide liquidity, allowing easy access to your money when needed.

Debt funds are ideal for conservative investors seeking steady growth without taking on much risk.

The taxation on debt funds can be more favourable than on fixed deposits. This can lead to better post-tax returns, especially if held for over three years.

However, they carry some interest rate and credit risk. It's important to choose funds with a strong track record and low credit risk.

Balanced Advantage Funds for Limited Equity Exposure
Balanced Advantage Funds are hybrid funds. They invest in both equity and debt, adjusting their allocation based on market conditions.

These funds offer a balance of safety and growth, suitable for senior citizens willing to take a bit more risk for higher returns.

The equity portion can provide growth, while the debt portion offers stability. This makes them a good middle-ground investment.

Balanced Advantage Funds can help combat inflation and preserve purchasing power over time.

It’s essential to monitor these funds regularly. Though they adjust allocation automatically, they are still subject to market risks.

Corporate Fixed Deposits for Higher Returns
Corporate Fixed Deposits offer higher interest rates compared to bank FDs. However, they come with higher risk.

It's crucial to choose corporate FDs from well-rated companies. This reduces the risk of default and ensures your capital is safer.

The interest income is taxable, just like bank FDs. Consider your tax bracket when choosing this option.

These are suitable for those seeking higher returns while accepting moderate risk.

Diversifying across different companies can help manage the risk associated with corporate FDs.

Government Bonds for Long-Term Security
Government Bonds are a secure investment, backed by the government. They offer a fixed interest rate and have long-term tenures.

They provide higher returns than savings accounts, with minimal risk of default.

Bonds with tax-free interest are available, offering attractive post-tax returns.

Government bonds are ideal for senior citizens who prefer long-term, risk-free investments.

However, they may lack liquidity, as they often have long lock-in periods. Consider this when planning your investment strategy.

National Savings Certificate (NSC) for Assured Returns
The National Savings Certificate (NSC) is a government-backed savings bond. It offers a fixed return and comes with a five-year tenure.

NSC is a safe investment option, suitable for conservative investors.

The interest earned is compounded annually but paid out at maturity. This helps in building wealth over time.

NSC investments are eligible for tax deductions under Section 80C. This can be a benefit if you’re looking for tax-saving options.

However, like other fixed-return instruments, the returns may not keep pace with inflation. Balance this with other investments to ensure adequate growth.

Avoiding Risky and Complex Investments
It’s advisable to avoid high-risk investments like stocks, equity-heavy mutual funds, or complex financial products.

Products like ULIPs or annuities often come with high fees and lower returns. They may not be suitable for senior citizens seeking safety and liquidity.

Direct investments in stocks or equity mutual funds can be volatile. These are more suitable for younger investors with a long time horizon.

Instead, focus on investments that offer stability, regular income, and capital preservation.

Benefits of Regular Funds Through MFDs with CFP Credential
Investing in regular funds through a Certified Financial Planner (CFP) ensures professional management and tailored advice.

Regular funds offer the advantage of expert guidance, which is crucial in navigating market fluctuations.

While direct funds might seem cost-effective, the benefits of regular funds managed by a CFP can outweigh the cost difference.

Regular funds also come with regular portfolio reviews, which help in staying aligned with your financial goals.

Building a Balanced Portfolio
A well-balanced portfolio is essential for senior citizens. It should include a mix of fixed income, growth-oriented funds, and safe investments.

Diversify across different asset classes to manage risk. This ensures that even if one investment underperforms, others can compensate.

Regularly review and adjust your portfolio based on your needs, risk appetite, and market conditions.

Consulting with a Certified Financial Planner (CFP) can help you build a portfolio that balances safety, income, and growth.

Final Insights
As a senior citizen, your investment strategy should prioritize safety and regular income, but not at the expense of growth.

A balanced approach, combining FDs, SCSS, debt mutual funds, and low-risk government schemes, can offer both stability and returns.

Avoid overly risky or complex products that may not suit your risk profile or financial goals.

Regularly review your investments and consider professional advice to ensure they continue to meet your needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello Divyata,

First of all, I want to commend you for your remarkable drive and vision at such a young age, and for setting your sights on studying at a prestigious institution like Oxford. Your achievements, including consistent academic excellence, international MUN victories, and state-level chess success, will significantly enhance your application and be highly advantageous when you apply to the top universities in the world. After finishing your schooling I would recommend you to consult with a study abroad counselor as they would be well equipped to help you apply and get admitted to the universities that match your aspirations. Keep up the great work, and best of luck with your future endeavors!

For more information, you can visit our website: edwiseinternational.com
You can also follow us on our Instagram page: @edwiseint

Ans: Current Financial Snapshot
Age: 51 years
Wife: Non-working
Child: 16 years old
Take-Home Salary: Rs 80,000 per month
Outstanding Home Loan: Rs 1 lakh
Emergency Fund in FDs: Rs 17 lakhs
Provident Fund Balance: Rs 20 lakhs
Mutual Fund Investments: Rs 80 lakhs
Monthly Savings Capacity: Rs 30,000 with a 10% annual increase for the next 3 years
Insurance: Sufficient term and family medical policies
Key Financial Goals
Retirement Corpus for Pension: Rs 60,000 per month, inflation-adjusted, for 30 years starting at 60.

Education Fund for Child: Rs 30 lakhs in total, spread over 4 years, starting in 2 years.

Goal 1: Building a Retirement Corpus
Current Scenario:

You are nine years away from retirement.
You will need Rs 60,000 per month for 30 years. This amount will need to grow with inflation.
Strategy:

Existing Mutual Funds: Your Rs 80 lakh in mutual funds is a solid foundation. Continue these investments.
Monthly SIPs: Your ability to save Rs 30,000 monthly, with a 10% increase each year, will help bolster your retirement corpus. Prioritise equity-oriented funds with a mix of large-cap and multi-cap funds.
Asset Allocation: Consider a 60:40 equity-to-debt ratio. Increase debt exposure as you approach retirement.
Inflation Protection: Shift part of your portfolio to instruments with inflation-beating potential, like equity funds.
Action Plan:

First 3 Years: Maximise SIPs in equity funds. Gradually shift gains to safer debt funds.
Last 6 Years: Gradually move to balanced funds or conservative hybrid funds.
At Retirement: Consider setting up a Systematic Withdrawal Plan (SWP) to generate monthly income.
Goal 2: Funding Your Child’s Higher Education
Current Scenario:

You need Rs 30 lakhs in 2 years for higher education.
The amount is spread over 4 years.
Strategy:

Debt Instruments: Given the short timeframe, focus on low-risk, debt-oriented funds or FDs for this goal.
Existing FDs: Part of your Rs 17 lakh emergency fund can be reallocated towards this goal, provided your emergency fund remains sufficient.
Laddered Approach: Spread the Rs 30 lakh requirement over 4 years by allocating funds to short-term FDs or debt funds maturing each year.
Action Plan:

Year 1: Allocate Rs 10 lakh to a low-risk debt fund or FD.
Year 2: Reassess and move another Rs 10 lakh into a similar fund.
Years 3 and 4: Use the remaining Rs 10 lakh for the final installments.
Optimising Your Savings and Investments
Emergency Fund:

Current Allocation: Rs 17 lakhs in FDs is secure but consider moving a portion into a liquid fund for slightly better returns.
Maintain Liquidity: Ensure Rs 10-12 lakhs remain easily accessible.
Provident Fund:

Current PF: Rs 20 lakhs should remain untouched to grow until retirement.
Strategic Usage: Post-retirement, consider using the PF as a safety net or for larger one-time expenses.
Home Loan:

Repayment: With Rs 1 lakh left, consider repaying this soon to free up cash flow.
Future Income Considerations
Monthly Pension:

SWP from Mutual Funds: This can provide a regular income post-retirement.
Reverse Mortgage: Consider this as a backup plan if required.
Inflation Protection:

Equity Allocation: Maintain some equity exposure even during retirement to counter inflation.
Estate Planning:

Will and Nomination: Ensure you have clear estate planning in place. Nominate beneficiaries for all investments.
Risk Management
Insurance:
Life Insurance: You have sufficient term insurance, which is excellent.
Health Insurance: Ensure the family medical policy covers potential future needs adequately.
Final Insights
Balanced Approach:

Your current investments provide a strong foundation. Focus on maintaining a balanced approach with both growth and security.
Goal Alignment:

Ensure each rupee is working towards a specific goal. Whether it's retirement or your child’s education, every investment should have a clear purpose.
Regular Review:

Your plan should be revisited annually. Adjustments will ensure you stay on track to meet your goals.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You are 58 years old and have built a substantial investment portfolio. Your portfolio includes Rs. 3.8 crore in mutual funds, Rs. 79 lakhs in equity, Rs. 75 lakhs in Provident Fund (PF), Rs. 10 lakhs in the National Pension System (NPS), and Rs. 10 lakhs in Public Provident Fund (PPF). You also contribute Rs. 1 lakh per month through a Systematic Investment Plan (SIP).

Your primary goal is to ensure a steady monthly income of Rs. 2 lakhs when you retire in January 2027. Let's evaluate how your current investments will help you achieve this goal.

Estimating the Retirement Corpus
To estimate the total corpus you can expect by January 2027, we need to consider your current investments, SIP contributions, and the expected returns from these investments.

Mutual Funds: Your Rs. 3.8 crore in mutual funds can grow significantly. The growth will depend on the market performance and the type of funds you hold.

Equity Investments: Your Rs. 79 lakhs in equity also has the potential for growth. Equity markets can be volatile, but over the long term, they generally provide good returns.

Provident Fund (PF): Your Rs. 75 lakhs in PF is a stable investment with a fixed return. The returns from PF are generally lower than equity but more secure.

National Pension System (NPS): Your Rs. 10 lakhs in NPS is also a long-term investment aimed at retirement. It provides a mix of equity and debt exposure.

Public Provident Fund (PPF): Your Rs. 10 lakhs in PPF is another stable investment with a fixed return.

Monthly SIP: Your monthly SIP of Rs. 1 lakh will continue to add to your corpus. SIPs in mutual funds are a disciplined way to invest regularly and benefit from market fluctuations.

Projected Retirement Corpus
Without diving into specific calculations, we can project that your current investments, combined with your ongoing SIPs, should grow substantially by January 2027. The key factors influencing the growth will be:

Market Performance: If the market performs well, your equity and mutual fund investments can see significant growth.

Interest Rates: The returns from PF, NPS, and PPF will depend on the prevailing interest rates. These investments provide stability but with lower growth potential compared to equity.

SIP Contributions: Your ongoing SIPs will continue to compound over time. The disciplined approach of SIPs can create a significant corpus by the time you retire.

Achieving a Steady Monthly Income Post-Retirement
Your goal of having a steady monthly income of Rs. 2 lakhs is achievable. Here’s how you can structure your retirement income:

Systematic Withdrawal Plan (SWP): One way to achieve a steady income is through a Systematic Withdrawal Plan (SWP) from your mutual funds. An SWP allows you to withdraw a fixed amount every month, providing you with a steady income while your investments continue to grow.

Diversified Income Sources: You can also diversify your income sources by allocating some of your corpus to different types of investments. For instance, a mix of debt funds, dividend-paying equity funds, and fixed deposits can provide stability and income.

Interest and Dividends: The interest from your PF, PPF, and NPS, along with dividends from equity investments, can contribute to your monthly income. These are more stable income sources compared to market-linked investments.

Laddering Fixed Deposits: You can ladder your fixed deposits to mature at different intervals. This way, you will have a steady flow of income at different stages of your retirement.

Role of Inflation in Retirement Planning
It’s crucial to account for inflation in your retirement planning. Inflation erodes the purchasing power of your money over time, which means you will need more money in the future to maintain the same lifestyle.

Inflation-Adjusted Income: Your retirement corpus should be large enough to provide an inflation-adjusted income. This means that while Rs. 2 lakhs per month may be sufficient today, you may need more in the future due to inflation.

Regular Portfolio Review: Regularly review your portfolio to ensure it is keeping up with inflation. You may need to adjust your investment strategy to maintain your desired lifestyle.

Benefits of Actively Managed Funds
Your portfolio includes significant investments in mutual funds. It's essential to continue focusing on actively managed funds rather than index funds. Here’s why:

Outperformance Potential: Actively managed funds have the potential to outperform the market, especially in a dynamic market like India. Fund managers can make informed decisions to maximize returns.

Risk Management: Fund managers actively manage risks by adjusting the portfolio based on market conditions. This flexibility is not available in index funds, which passively track an index.

Customized Strategy: Active funds allow fund managers to implement strategies tailored to market conditions and specific goals. This can result in better returns compared to index funds, which simply mirror the market.

Advantages of Regular Funds Over Direct Funds
You may also be considering whether to invest in direct or regular mutual funds. Here’s why regular funds, managed by a Certified Financial Planner, may be more suitable for you:

Professional Guidance: Regular funds offer the benefit of professional guidance from a Certified Financial Planner (CFP). This ensures your investments are aligned with your financial goals.

Portfolio Monitoring: A CFP continuously monitors your portfolio and makes necessary adjustments. This helps optimize your returns and manage risks.

Convenience and Expertise: Investing through a CFP provides convenience and the expertise needed to navigate complex financial markets. Direct funds do not offer this level of personalized service.

Comprehensive Retirement Strategy
Given your current investments, you are well-positioned to achieve your retirement goals. However, it’s important to have a comprehensive retirement strategy that considers all aspects of your financial situation.

Emergency Fund: Ensure you have an emergency fund in place to cover unexpected expenses. This should be easily accessible and not tied up in long-term investments.

Health Insurance: Adequate health insurance is crucial as medical expenses can be significant during retirement. Review your health insurance coverage to ensure it is sufficient.

Estate Planning: Consider your estate planning needs, including creating a will and designating beneficiaries for your investments. This will ensure your assets are distributed according to your wishes.

Tax Planning: Effective tax planning can help you maximize your retirement income. Consider tax-efficient investments and strategies to minimize your tax liability.

Final Insights
You have built a strong financial foundation with diversified investments. Your goal of achieving a monthly income of Rs. 2 lakhs post-retirement is within reach. Continue focusing on growing your retirement corpus while managing risks. Regular reviews and adjustments, along with professional guidance from a Certified Financial Planner, will help you achieve your retirement goals and enjoy a comfortable, financially secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in