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Retired at 56 with 4 flats: How to maximize returns?

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 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 - Jul 07, 2024Hindi
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I m retired at 56, my savings 4 flats in mumbai, 2 I m staying with family of 6 people, wife, parents and 2 children, 2 can b sold or given on rent, FD 3 crores. Monthly family expenses 2 lacs, no loan. Suggest best way to invest to maximise returns

Ans: Current Financial Overview
Flats in Mumbai: 4 (2 occupied, 2 available for sale/rent)
Fixed Deposits (FD): Rs 3 Crores
Monthly Expenses: Rs 2 Lakhs
No loans
Financial Goals
Maximise returns on existing assets
Generate sufficient income to cover monthly expenses
Ensure financial security for the family
Investment Strategy
To meet your financial needs and maximise returns, a balanced and diversified investment approach is recommended.

Rental Income from Flats
Option 1: Rent Both Flats

Renting out both flats can provide a steady income. In Mumbai, rental income can be substantial, providing a reliable cash flow to cover expenses.
Option 2: Sell One Flat, Rent One Flat

Selling one flat can provide a significant lump sum for investment, while renting the other ensures steady monthly income.
Fixed Deposits and Debt Instruments
Fixed Deposits

Continue with Rs 1 Crore in fixed deposits for stability and liquidity. FD rates are lower but provide safety and regular interest.
Debt Funds

Invest Rs 1 Crore in high-quality debt funds or bond funds. They offer better returns than FDs and are relatively safe.
Equity Investments
Equity Mutual Funds

Invest Rs 50 Lakhs in a diversified portfolio of equity mutual funds, including large-cap, mid-cap, and multi-cap funds. These funds provide growth potential over the long term.
Dividend Yield Funds

Invest Rs 50 Lakhs in dividend yield funds or high dividend-paying stocks for regular income along with capital appreciation.
Real Estate Investment Trusts (REITs)
REITs
Consider investing in REITs with Rs 50 Lakhs. REITs provide exposure to real estate without the hassle of property management and offer regular income.
Emergency Fund
Emergency Fund
Keep Rs 50 Lakhs in a high-interest savings account or liquid fund. This ensures liquidity for unforeseen expenses.
Regular Income Strategy
Monthly Income Plan
Set up a monthly income plan with a mix of rental income, interest from FDs, dividends from equity investments, and returns from debt funds. This diversified income approach ensures stability and reduces risk.
Monitoring and Rebalancing
Regular Review
Review your investment portfolio periodically. Adjust based on market conditions and changes in financial needs.
Tax Efficiency
Tax Planning
Invest in tax-efficient instruments. Use tax benefits available under various sections of the Income Tax Act to minimise tax liability.
Final Insights
Financial Security

Ensure you have adequate health and life insurance. This protects your family’s financial future.
Professional Advice

Consider consulting a Certified Financial Planner for a detailed and personalised financial plan.
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 Nov 25, 2024

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I am 37 years old and earn a salary of Rs.75000/- per month. Please suggest me investment plan for me and my family(wife+1 kid) with higher returns.
Ans: Your financial plan must align with your family’s current and future needs.

You need to consider education for your child, your retirement, and family security.

Planning for emergencies and insurance coverage is also crucial to safeguard your loved ones.

Investing for higher returns requires a balance of risk and diversification.

Creating an Emergency Fund
Before starting investments, build a robust emergency fund.

This fund should cover 6 to 12 months’ expenses for unforeseen events.

Keep this fund in liquid instruments for easy access during emergencies.

It will ensure you do not disrupt other investments.

Securing Your Family with Insurance
Ensure you have adequate term insurance to secure your family’s future.

Coverage should be at least 10-15 times your annual income.

Medical insurance for all family members is equally important.

It protects your savings from high healthcare costs.

Systematic Investment for Long-Term Growth
Invest in equity mutual funds for long-term wealth creation.

These funds offer high growth potential suitable for long-term goals.

Professional fund managers optimise returns in actively managed funds.

They help outperform markets, offering better value than passive funds.

Balancing Medium-Term Goals
For medium-term goals like a child’s education, choose balanced or hybrid funds.

These funds combine equity and debt, reducing risks while ensuring reasonable returns.

Invest systematically through monthly contributions for consistent growth.

Avoid one-time investments for medium-term goals due to market volatility.

Debt Investments for Short-Term Goals
Use debt mutual funds for short-term financial needs.

These funds provide stability with lower risk compared to equity investments.

Debt funds are tax-efficient and offer better returns than fixed deposits.

They help preserve capital while meeting short-term expenses.

Avoiding Index Funds
Index funds do not actively manage investments and may underperform markets.

They offer no strategic asset allocation to adapt to market changes.

Active funds provide better growth with professional expertise managing risks.

Investing through Certified Financial Planners ensures personalised advice.

Disadvantages of Direct Funds
Direct funds lack professional guidance, leading to uninformed decisions.

Regular funds managed through Certified Financial Planners offer tailored strategies.

They monitor and optimise investments as per changing financial situations.

Investing for Your Child’s Future
Start early for your child’s education and future financial needs.

Equity funds are ideal for long-term growth, ensuring a substantial corpus.

Use systematic investment plans (SIPs) for disciplined investing over the years.

Diversify across fund categories to reduce risks while maximising returns.

Retirement Planning for Financial Independence
Invest in equity and balanced funds for a strong retirement corpus.

Start early to benefit from the power of compounding over time.

Increase investment amounts gradually as your income grows.

Ensure your retirement corpus covers inflation and your post-retirement lifestyle.

Diversifying Investments
Diversify across equity, debt, and hybrid funds to balance risks.

Avoid overexposure to one asset class or fund category.

Diversification minimises losses during market fluctuations.

Maintain a mix based on your financial goals and risk tolerance.

Regular Monitoring and Reviews
Monitor your investments regularly to ensure they align with your goals.

Review fund performance and make adjustments as needed.

Work with a Certified Financial Planner for expert guidance and timely changes.

Tax Efficiency in Investments
Understand tax implications before investing in any financial instrument.

Equity fund gains above Rs 1.25 lakh attract 12.5% tax.

Debt fund gains are taxed as per your income tax slab.

Choose tax-efficient funds while keeping your financial goals in focus.

Final Insights
A well-structured plan ensures financial security and growth for your family.

Focus on systematic investing with a long-term perspective.

Consult a Certified Financial Planner for personalised and effective investment advice.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Ramalingam

Ramalingam Kalirajan  |9758 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 27, 2025

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I am a retired person of 61years. I have a corpus of 85 lakhs , with two flats. One in Mumbai and the other in Nashik. I have no liability towards emi or children education. Presently my income comes from mutual funds, share market and house rent. Pl let me know how can I invest to get a return of at least one lakh per month
Ans: At age 61, your corpus of Rs. 85 lakhs and property assets give a solid foundation. Generating Rs. 1 lakh monthly requires careful allocation of your resources, balancing growth, and stability. Below is a detailed 360-degree solution.

Key Observations and Current Income Sources
You have two flats in Mumbai and Nashik, generating rental income.

Investments in mutual funds and the share market provide additional income.

You have no liabilities for EMIs or children’s education.

This financial freedom allows you to focus entirely on managing and optimising your investments.

Monthly Income Goal and Inflation
Your target income of Rs. 1 lakh per month is Rs. 12 lakh annually.

Inflation will increase your living expenses over the next 20+ years.

Your investment strategy must beat inflation while maintaining stable cash flow.

Allocation of Corpus for Regular Income
1. Emergency Fund
Set aside Rs. 5-7 lakhs as an emergency fund.

Invest in a liquid mutual fund or a short-term FD for easy access.

This ensures financial stability during unforeseen circumstances.

2. Equity for Growth
Allocate 40% of your corpus (Rs. 34 lakhs) to equity mutual funds.

Focus on diversified equity funds with large-cap, multi-cap, and balanced categories.

These funds will provide growth to counter inflation over the long term.

3. Debt for Stability
Invest 50% of your corpus (Rs. 42.5 lakhs) in debt instruments.

Use a mix of debt mutual funds, corporate bonds, and fixed deposits.

Debt investments provide stable and predictable returns.

4. Systematic Withdrawal Plan (SWP)
Use SWPs from mutual funds for regular monthly income.

Withdraw from balanced and debt funds to ensure capital preservation.

Start with Rs. 75,000 from debt and balanced funds, adjusting for inflation later.

5. Share Market Investments
Retain 5%-10% (Rs. 4-8 lakhs) in the share market for high-return opportunities.

Diversify your portfolio to reduce risk from market volatility.

Invest only surplus funds and avoid using them for monthly expenses.

Managing Rental Income
Maintain both properties to ensure steady rental income.

Use the rental income for daily living expenses or reinvest in debt funds.

Review rental agreements periodically to match market rates.

Tax Implications on Investments
Equity LTCG above Rs. 1.25 lakh is taxed at 12.5%.

STCG on equity funds is taxed at 20%.

Debt mutual funds are taxed as per your income tax slab.

Plan withdrawals to minimise tax liabilities using a Certified Financial Planner.

Health and Insurance Considerations
Ensure your health insurance coverage is adequate for senior citizen needs.

Review the policy sum assured and add critical illness coverage if needed.

Keep a separate fund for health emergencies to avoid dipping into investments.

Regular Portfolio Reviews
Review your investments annually with a Certified Financial Planner.

Rebalance equity and debt allocations based on market performance and age.

Shift to safer options like debt and balanced funds as you grow older.

Benefits of Actively Managed Funds Over Index Funds
Actively managed funds outperform index funds in the Indian market.

Skilled fund managers identify high-growth opportunities and minimise risks.

Certified Financial Planners select suitable funds tailored to your goals.

Key Recommendations
1. Avoid Real Estate Investments
Real estate is illiquid and unsuitable for generating monthly income.

Focus on mutual funds and fixed-income options for better liquidity.

2. Reallocate High-Risk Investments
Reduce exposure to individual stocks if market fluctuations affect income stability.

Transfer surplus equity investments to balanced funds or debt options.

3. Utilise Surplus Funds
Reinvest any surplus income into equity or hybrid mutual funds.

Compounding will enhance your corpus over time.

Finally
Generating Rs. 1 lakh monthly is achievable with disciplined financial planning.

Diversify your corpus into equity, debt, and SWPs for stability and growth.

Regularly review your portfolio to ensure alignment with financial goals.

Stay focused on maintaining liquidity and minimising risks in your retirement years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

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Sir I got 68676 in comedk Can you suggest good colleges forCSE or CSE specialization
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My son is getting civil at bits pilani + rmit 2+2 program and cse at vit-ap cat-2 What should we choose
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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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SIR I should go for HBTU (IT) or IIIT VADODARA DIU CAMPUS (ELECTRONICS)?
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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
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Sir I have scored 83 percentile in MHT cet 2025 what are the best college option for me in Mumbai region
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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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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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