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Ans: Dealing with financial emergencies and unexpected medical expenses requires careful planning and preparation. Here are steps you can take, along with considerations for medical and term insurance:

Steps for Financial Emergencies:

1. Emergency Fund:

Establish an emergency fund to cover 3 to 6 months' worth of living expenses. This fund acts as a buffer during unexpected situations.

2. Budgeting:

Create and stick to a budget. Knowing where your money goes can help you allocate funds for emergencies and unexpected expenses.

3. Insurance:

Obtain the right insurance coverage, including health insurance, term life insurance, and other relevant policies.

4. Medical Expenses:

Explore options for reducing medical expenses, such as negotiating bills, choosing generic medications, and utilizing preventive care.

5. Debt Management:

If necessary, consider consolidating high-interest debts or negotiating payment plans with creditors.

6. Side Income:

Explore additional sources of income or side hustles to supplement your regular earnings.

7. Financial Planner:

Consult with a financial planner to develop a comprehensive financial plan that includes emergency preparedness.

Medical Insurance/Mediclaim:

1. Health Insurance Coverage:

Choose a health insurance plan that provides adequate coverage for hospitalization, outpatient care, and major illnesses.

2. Network Hospitals:

Check the list of network hospitals to ensure that you have access to quality healthcare providers.

3. Pre-existing Conditions:

Understand how pre-existing conditions are covered, as some policies may have waiting periods.

4. Policy Renewal:

Opt for policies with lifelong renewability to ensure coverage as you age.

Term Insurance:

Advantages:

• Affordability: Term insurance is generally more affordable than other life insurance products.

• Pure Protection: It offers pure life coverage without any investment component, ensuring a higher coverage amount for a lower premium.

• Flexibility: You can choose the coverage period based on your needs.

Disadvantages:

• No Maturity Benefit: Unlike traditional insurance products, term insurance does not provide a maturity benefit if the policyholder survives the term.

• No Cash Value: There is no cash accumulation or investment component in term insurance.

Traditional Insurance Products:

Annuity:

• Advantages: Provides a steady income stream during retirement.

• Disadvantages: Typically has higher premiums, and there may be no death benefit.

Moneyback:

• Advantages: Offers periodic returns during the policy term.

• Disadvantages: Premiums are usually higher compared to term insurance, and returns may be lower than other investment options.

Considerations:

• Needs Analysis: Assess your financial goals and needs before selecting insurance products.

• Review Periodically: Regularly review and update your insurance coverage to align with changing circumstances.

• Compare Policies: Compare different insurance policies, considering coverage, premiums, and terms.

It's advisable to consult with a financial advisor who can provide personalized advice based on your specific situation and goals.

Ans: When buying health insurance, it's essential to consider several factors to ensure that the policies meet your specific needs and provide adequate coverage. Here are key factors to consider for each type of insurance:

Health Insurance:

Coverage and Benefits:

• Hospitalisation Coverage: Ensure the policy covers hospitalization expenses, including room charges, doctor's fees, and surgical expenses.

• Preventive Care: Check if the policy includes coverage for preventive care, vaccinations, and health check-ups.

• Network Hospitals: Verify the list of network hospitals where you can avail cashless treatments. A robust network ensures accessibility to quality healthcare.

• Coverage Limits and Sub-limits: Be aware of the overall coverage limit as well as sub-limits for specific expenses, such as room rent, doctor's fees, and specific treatments.

• Waiting Periods and Exclusions: Understand any waiting periods for specific conditions and the list of exclusions. Some policies have waiting periods for pre-existing conditions.

• Renewal Age and Continuity: Check the maximum renewal age and continuity benefits. A policy that allows lifetime renewals can be beneficial in the long run.

• Premiums and Deductibles: Compare premium costs and consider the impact of deductibles on your out-of-pocket expenses.

• Claim Process: Look for a health insurance policy with a straightforward and efficient claims settlement process.

• Family Coverage: If you are considering a family health insurance plan, ensure it covers all family members adequately.

Both life insurance and health insurance are crucial components of a comprehensive financial plan. It's advisable to assess your specific requirements, compare policies from different insurers, and seek advice from insurance professionals to make informed decisions based on your unique circumstances.

Ans: To help you understand the difference between comprehensive and non-comprehensive (commonly known as third-party) auto insurance, and guide you which auto insurance might be more suitable for your needs, here are some points to consider.

Comprehensive Cover:

• Coverage: Comprehensive insurance provides coverage for a wide range of incidents, including damage to your own vehicle due to accidents, theft, natural disasters (like floods or earthquakes), fire, vandalism, and other non-collision events.

• Third-party Coverage: In addition to covering damages to your own vehicle, comprehensive insurance also includes third-party liability coverage. This means it provides protection against any damage or injury caused to third parties (other people or their property) by your vehicle.

Non-Comprehensive (Third-Party) Cover:

• Coverage: This type of insurance primarily covers damages and injuries caused by your vehicle to third parties. It does not cover damages to your own vehicle in the event of an accident or other non-collision incidents.

• Legal Requirement: In many places, having at least third-party insurance is a legal requirement. It ensures that if you cause harm to others or their property, there is coverage to compensate for those damages.

Choosing the Right Insurance:

• Comprehensive Cover: If you want more extensive protection for your own vehicle and want coverage for a broader range of events, comprehensive insurance is the better choice. It provides peace of mind knowing that you are covered not only for accidents but also for theft, natural disasters, and other unforeseen circumstances.

• Non-Comprehensive (Third-Party) Cover: If you are looking for a more budget-friendly option and are willing to bear the cost of repairing or replacing your own vehicle in case of an accident, third-party insurance might be suitable. However, it's important to note that this option doesn't provide coverage for damages to your own vehicle.

Ultimately, the choice between comprehensive and non-comprehensive insurance depends on your individual needs, budget, and the level of coverage you desire. If you can afford it, comprehensive coverage is generally recommended for more comprehensive protection. Always review the policy terms, conditions, and coverage limits before making a decision. Additionally, consider consulting with insurance professionals or agents to get personalised advice based on your specific situation.

Ans: Investing in stocks comes with several risks, and understanding them is crucial to make informed investment decisions. Here are some common risks and ways to mitigate them:

1. Market Risk (Systematic Risk): The overall market movement can impact stock prices. Economic conditions, geopolitical events, interest rates, and market sentiment affect all stocks.

• Mitigation: Diversification across different industries, asset classes, and geographies can reduce exposure to market risk. Additionally, holding investments for the long term can help mitigate the impact of short-term market fluctuations.

2. Company-Specific Risk (Unsystematic Risk): Factors affecting a particular company, such as poor management decisions, product failures, or legal issues, can cause its stock to decline.

• Mitigation: Diversify your portfolio by investing in different companies and sectors to spread the risk. Thorough research and analysis of individual companies before investing can also mitigate company-specific risks.

3. Liquidity Risk: Some stocks may not have enough trading activity, making it challenging to buy or sell them without affecting the stock price.

• Mitigation: Focus on stocks with higher average trading volumes. Blue-chip stocks or those in major indices usually have higher liquidity.

4. Volatility Risk: Stocks can be volatile, experiencing rapid price fluctuations within short periods.

• Mitigation: Consider a long-term investment horizon, which can reduce the impact of short-term volatility. Stop-loss orders or options strategies can also mitigate sudden losses.

5. Interest Rate Risk: Changes in interest rates can impact stock prices, especially for sectors like utilities or real estate.

• Mitigation: Diversification across industries and adjusting the portfolio based on interest rate expectations can help mitigate this risk.

6. Currency Risk (for international investments): Fluctuations in currency exchange rates can impact the returns on international investments.

• Mitigation: Hedging strategies like currency hedging or investing in multinational companies can reduce currency risk.

7. Inflation Risk: Inflation can erode the purchasing power of investment returns.

• Mitigation: Invest in assets that tend to perform well during inflationary periods, such as stocks of companies with pricing power, real estate, commodities, or Treasury Inflation-Protected Securities (TIPS).

8. Psychological Bias and Emotional Risk: Investor behaviour driven by emotions like fear or greed can lead to poor investment decisions.

• Mitigation: Stick to a well-thought-out investment plan and avoid emotional reactions to short-term market movements. Regularly review and rebalance your portfolio based on your long-term goals rather than reacting to market noise.

Remember, while it's crucial to mitigate risks, it's impossible to eliminate them entirely. Developing a diversified portfolio aligned with your risk tolerance and investment goals are the key to managing and reducing risks associated with stock market investments.

Ans: Analysing and selecting stocks for long-term investment involves a mic of technical and fundamental analysis, though the weight you assign to each may vary based on your investment strategy and preferences.

Fundamental analysis involves evaluating a company's financial health, its management, competitive advantages, industry trends, and growth potential. This includes studying metrics like revenue, earnings, debt levels, cash flow, market share, and analysing qualitative aspects like management quality, competitive advantages (like patents or unique products), and growth prospects.

It's valuable for long-term investors interested in the company's underlying health and potential for future growth.

Technical analysis, on the other hand, focuses on studying price charts (candlesticks, Point & Figure, Renko, Heikin Ashi, Kagi, line charts, etc.) volume patterns, and market trends to predict future price movements.

Technical analysis involves more about analysing historical price data, identifying patterns, and finding out probabilities that a price chart would behave just as analysed based on market psychology and price momentum. This approach is often used by traders aiming for shorter-term gains.

For long-term investors, fundamental analysis tends to carry more weight because it assesses the intrinsic value of a company. However, some investors use technical analysis to time their entry into a stock or to identify potential entry or exit points.

Here are six steps for a long-term investment approach:

1. Understand the business: Research and understand the company's products/services, business model, competitive landscape, and industry trends. Look for a sustainable competitive advantage and growth potential.

2. Financial health: Evaluate the company's financial statements, looking at revenue, earnings, cash flow, debt levels, and profitability ratios. Compare these metrics with competitors and industry benchmarks.

3. Management quality: Assess the management team's track record, their vision for the company, and their execution capabilities. Strong leadership can significantly impact a company's long-term success.

4. Valuation: Determine if the stock is undervalued, fairly valued, or overvalued. Compare key financial ratios (like P/E ratio, P/B ratio, and others) to historical averages, industry peers, and the overall market.

5. Future prospects: Consider the company's growth prospects, potential risks, and any upcoming catalysts or challenges that might affect its performance in the long run.

6. Diversification: Spread your investments across different sectors and industries to reduce risk. This helps protect your portfolio from adverse events affecting a particular sector.

Ultimately, the "better" approach between technical and fundamental analysis depends on your investment goals, risk tolerance, and time horizon.

Many successful long-term investors use a combination of both to make informed decisions.

Ans: Market fluctuations and potential corrections are natural concerns for investors, especially when the markets are at all-time highs. Here are considerations to protect against potential drawdowns:

1. Diversification:

• Asset allocation: Consider diversifying across different asset classes like equities, bonds, gold, and real estate to spread risk.
• Rebalancing: Review and rebalance your portfolio periodically to maintain the desired asset allocation.

2. Gold as a hedge:

Gold often serves as a hedge -- sort of protection against losses -- during market downturns or economic uncertainties. Consider allocating a portion of your portfolio to gold through gold ETFs, sovereign gold bonds, or physical gold.

3. Real estate investment:

Real estate can be a tangible asset providing stability and potential long-term appreciation. However, it's illiquid and requires careful consideration before investing.

Evaluate the real estate market, location, potential rental income, and liquidity before making a decision.

4. Systematic withdrawal plans (SWPs):

Consider gradually shifting a portion of your MF investments to less volatile assets like debt or liquid funds through SWPs to mitigate potential risks.

5. Staggered investing:

Instead of liquidating a significant portion of your MF investments at once, consider staggered selling over time to reduce the impact of market volatility.

6. Consult a financial advisor:

Seek guidance from a financial advisor or planner to assess your risk tolerance, investment goals, and to create a strategy that aligns with your financial objectives.

7. Long-term investment perspective:

Evaluate your investment horizon and financial goals. Short-term market fluctuations might not significantly impact long-term investments.

8. Stay informed:

Always stay updated on market trends, economic indicators, and geopolitical factors that could impact your investments.

Before making any significant changes to your investment strategy, thoroughly assess the potential benefits and risks of reallocating funds from MFs to gold or real estate. Understand the liquidity, maintenance, and potential returns of these assets. Each investment avenue has its own dynamics, so consider how they fit into your overall financial plan and align with your long-term goals. Consulting with a financial advisor can help tailor a strategy that suits your risk profile and financial aspirations.

Ans: When looking for a suitable plan, ensure you check the coverage details, exclusions, claim procedures, and customer reviews. Additionally, it's crucial to disclose any pre-existing medical conditions to ensure adequate coverage during your trip.

Before finalising your insurance, consider comparing the offerings from various companies mentioned below to find a plan that best fits your needs and provides you with peace of mind during your travels in China.

There are several insurance companies that offer comprehensive travel insurance packages for Indian tourists travelling to China. Here are some options you might consider:

1. ICICI Lombard: They offer travel insurance plans that cover medical emergencies, trip cancellations, delays, baggage loss, and more. You can check their specific international travel insurance plans designed for tourists.

2. HDFC Ergo: They have travel insurance policies that provide coverage for medical expenses, trip interruptions, baggage loss, and other travel-related contingencies.

3. Bajaj Allianz: They also offer travel insurance plans tailored for international travellers, encompassing medical emergencies and various travel-related issues like flight delays, loss of baggage, etc.

4. Reliance General Insurance: They provide comprehensive travel insurance covering medical emergencies and other travel-related problems.

5. Tata AIG: They offer travel insurance plans for international tourists that cover medical expenses, trip cancellations, baggage loss, and more.

Happy journey.

Ans: Determining the best mutual funds to invest in depends on various factors including your financial goals, risk tolerance, investment horizon, and market conditions. There isn't a one-size-fits-all answer as what might be the best for one person may not suit another.

Also, past market performance should not be the sole criteria for investing in market funds because such investments are subject to market risk.

But here’s a checkpoint to identify funds which match your risk profile:

• Understand Your Risk Tolerance: Assess how comfortable you are with the possibility of losing money in the short term. If you're comfortable with fluctuations for potentially higher returns, you might have a higher risk tolerance.
• Consider Investment Goals: Are you investing for retirement, short-term gains, or long-term wealth accumulation? Your goals will influence the type of funds you choose.
• Analyse Fund Characteristics: Look at factors like the fund's historical performance, expense ratio, asset allocation, and investment strategy. Funds that have performed consistently well might be worth considering.
• Diversification: Spread your investments across various asset classes (stocks, bonds, real estate, gold, silver, etc.) to mitigate risk.
• Consult a Financial Advisor: If you're unsure about your risk tolerance or which funds align with your goals, seek advice from a financial advisor.

Commonly, mutual funds are categorised based on risk profiles:

• Equity Funds: These are generally riskier but offer higher growth potential. They invest in stocks and are suitable for investors with a higher risk tolerance and a longer investment horizon.
• Debt Funds: These are less risky as they invest in fixed-income securities like bonds. They're suitable for investors with lower risk tolerance and those seeking steady income.
• Balanced/Hybrid Funds: These maintain a mix of stocks and bonds, offering a balance between growth and income. They can suit moderate risk tolerance.
• Index Funds: These replicate a market index (like the S&P 500), providing diversified exposure at lower costs. They tend to have moderate risk.

Each fund has its own risk level within these categories, so it's important to review the fund's prospectus and historical performance to align it with your risk tolerance.

Lastly, keep in mind that while historical performance can indicate a fund's potential, it's not a guarantee of future returns. Regularly reviewing your investments and adjusting them as your financial situation or goals change is essential.

Ans: Stock market bellwethers like the Nifty and Sensex represent a basket of stocks that aim to give investors an idea of the overall market performance.

Interpreting these indices involves understanding their movements and how they relate to your investments.

Market Performance: When indices like the Nifty or Sensex rise, it generally indicates that the majority of stocks within that market are also increasing in value. Conversely, a decline suggests a broader decrease in stock prices.

Diversification: Indices provide diversification benefits. They represent various sectors, reducing the risk associated with investing in individual stocks. If an index rises, it doesn't mean every stock within it is increasing -- some might be declining.

Benchmarking: Investors often compare their portfolio returns against the performance of these indices. If your investments consistently underperform the index, it might indicate that your strategy needs adjustment.

The Nifty and Sensex are calculated differently:

Sensex: It represents the performance of 30 large, well-established, and financially sound companies listed on the Bombay Stock Exchange (BSE). The calculation involves the free-float market capitalisation method. It divides the total market capitalisation of the 30 companies by a base number (set on April 1, 1979, initially 100) to arrive at the index level.

Nifty: This index comprises 50 stocks listed on the National Stock Exchange (NSE). It uses the free-float market capitalisation method as well. The Nifty's level is calculated by dividing the total market capitalisation of its constituent stocks by a base value (set on November 3, 1995, initially 1,000).

To gauge the impact of these indices on your investments:

Benchmarking: Compare your portfolio's performance against these indices to assess how well you're doing relative to the broader market.

Asset Allocation: If you're investing in index funds or ETFs that track these indices, their performance directly impacts your investment returns.

Market Trends: The movement of these indices can provide insights into overall market trends, helping you make informed decisions about buying, selling, or holding investments.

Remember, while indices offer a snapshot of the market, individual stocks may behave differently due to various factors like company performance, industry trends, economic changes, etc. It's essential to analyse both the broader market indices and your specific investments for a comprehensive understanding.

Ans: Risks associated with investing in the stock market include market volatility, potential loss of capital, and uncertainty. With only a year after your graduation and without much experience in investing, avoid taking big bets lest you lose your entire capital in this experiment. The risk involves potential losses since the market can be unpredictable. It's crucial to diversify your investments, avoid putting all your money into a single stock, and consider seeking advice from financial advisors to minimise risks.

Here's a basic guide:

1. Educate Yourself: Learn about how the stock market works. There are many online resources, books, and courses available.

2. Set Clear Goals: Determine your investment goals, whether it's for long-term wealth growth, retirement, or something else.

3. Create a Budget and Emergency Fund: Ensure you have an emergency fund set aside before investing. Don't invest money you might need in the short term.

4. Choose an Investing Strategy: Decide between individual stocks, mutual funds, ETFs, or other investment vehicles. Consider diversification to spread risk.

5. Open a Demat Account: Find a reputable brokerage and open a Demat account to start trading.

6. Start Small: Begin with a small amount to test the waters and gradually increase your investments as you gain more confidence.

Hope that helps.

Once again remind yourself stock market can be quite handful for someone like you who has absolutely no experience of investing.

At the cost of sounding too cautious, I would advice you to return the money back to your family, learn basics of how the stock market works, how companies and stocks are analysed, valued, and may be a year or two later you can think about entering the market with the help of a trustworthy and credible financial advisor to guide you.

Ans: First things first, Mahi.

Investing in IPOs can be tempting due to the potential for quick gains, but it's essential to approach them with caution and thorough research, especially if your investment horizon is three-plus year.

Remember, investing in IPOs solely for short-term listing gains can be risky, as market volatility can significantly impact initial prices. Always align your investments with your long-term financial goals and risk tolerance.

If you're unsure about analysing an IPO, consulting with a financial advisor could provide personalised guidance based on your specific financial situation and goals.

Here are eight checkpoints to consider when evaluating an IPO:

1. Company Fundamentals: Look into the company's business model, competitive advantages, revenue sources, growth prospects, and financial health. Check if it's a sector with good potential for growth in the coming years.

2. Management Team: Assess the leadership and management team. Experience, track record, and their vision for the company are crucial indicators of future success.

3. Purpose of IPO: Understand why the company is going public. Is it for expansion, debt repayment, or for early investors to exit? A clear purpose can indicate the company's intentions and stability.

4. Valuation: Evaluate the IPO price in relation to the company's earnings, growth potential, and comparable companies in the market. Sometimes, IPOs are priced too high, which can affect future gains.

5. Market Conditions: Consider the overall market conditions. Sometimes, a turbulent market can impact an IPO's performance regardless of the company's quality.

6. Lock-up Period: Check if there's a lock-up period for insiders and early investors. If there is, they might sell their shares when the lock-up expires, potentially impacting the stock price.

7. Analyst Ratings and Reviews: Analyst reports and expert opinions can provide insights into the company's strengths, weaknesses, and growth prospects. But do not solely rely on these ratings and reviews to make an investment decision.

8. Long-Term Prospects: Assess if the company has a sustainable competitive advantage and growth potential over the next three-plus years.

To separate good IPOs from bad ones, focus on the company's fundamentals, long-term growth prospects, and management quality rather than just the hype surrounding the IPO.

Ans: Sovereign Gold Bonds (SGBs) are financial instruments issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds allow individuals to invest in gold without physically owning it. Instead of purchasing physical gold, investors buy these bonds issued by the government, which are linked to the market price of gold.

Here's how you can invest in Sovereign Gold Bonds:

1. Purchase During The Issuance Period: SGBs are issued periodically by the RBI, and investors can subscribe to them during specific issuance periods announced by the government. These periods are usually communicated through banks, designated post offices, stock exchanges, and other authorised agencies.

2. Application Process: You can apply for SGBs through eligible intermediaries like commercial banks, Stock Holding Corporation of India Ltd. (SHCIL), designated post offices, and recognised stock exchanges. The application process involves providing KYC (Know Your Customer) details and the required investment amount.

3. Allotment: Once you apply during the issuance period and fulfill the necessary criteria, the government allots the bonds based on the subscription.

Regarding tax benefits:

a. Capital Gains Tax Exemption: The main tax benefit of SGBs is that they qualify for long-term capital gains tax exemption if held until maturity (eight years). When you redeem or sell the bonds after this duration, the capital gains are exempt from tax.

b. Interest Income and Indexation Benefits: SGBs also offer an annual interest rate (fixed at the time of issuance) paid semi-annually. This interest income is taxable as per the income tax slab you fall under. However, the indexed cost of acquisition is allowed to be deducted from the capital gains arising on redemption, if any.

c. No Wealth Tax: Holding SGBs doesn’t attract wealth tax, which is an added advantage compared to physical gold holdings.

One must invest in SGBs, or, in any other asset class, only after consulting a financial advisor or tax consultant. This helps you get personalised advice regarding investments and tax implications depending on your family and wealth profile.

The attractiveness of SGBs depends on various factors, including prevailing interest rates, market conditions, and individual financial goals.

Ans: Please go to Apex. Col Brahmankar's institute is good. Do not go to institutes which give you short cuts to success....these won't make you pass!

Ans: Institutes are similar all over, but look for one which does not teach the child short cuts to success. What your daughter needs to know is what happens at the SSB and nothing else. I am not aware of good coaching institutes in Surat, but Pune definitely has a few. You haven’t told me what competitive exam has she cleared and what arm or service she wants to apply for.

Ans: Hi Value Investor. Thanks for discussing your requirements and future goals. For the goal of 7-8 Lakh., you can easily start sip in mf of around Rs.15000 in categories like large & midcap, Multicap , Mid cap and Balanced Advantage Funds etc. Starting with Rs.15000 on a monthly basis can help you achieve the Child Education goal.

Ans: Overall health is determined by lean mass and not fat. You have an ectomorph body type - lean, with little body fat, and little muscle. You can be skinny but you must build muscle mass. This can be done by regular weight training exercises and a high protein diet. Being a vegetarian, you can have good protein sources from dairy products, pulses and legumes, nuts, soya, whole grains, etc. Fast and junk foods will only help you gain fat and elevate your blood lipid levels.

Ans: It's not sufficient to achieve your goal of 30 Lakh in 2-3 years with SIP of 30000

Ans: How one partner views the financial status of the other and how the couple handles it is very personal. If financial status is a cause of concern in the relationship, then both partners need to take a hard look at the equation to determine if they are happy in the relationship, is the relationship meeting their expectations as individuals or partners.

Ans: Hi Mahipal
This action will get covered under the clubbing of income provisions and your wife's income from the investment will get added to your income

Ans: Assuming that you have 13 years to retire, it would be good for you to invest in equity products and then use 4-bucket strategy for generating the required regular income for your retirement needs. You can read here about the bucket strategy: https://www.moneycontrol.com/news/business/personal-finance/bucket-strategies-to-plan-income-from-retirement-corpus-9541101.html

You will need to invest about Rs 21,000 per month to reach your target of Rs 1 Crore in 13 years if you invest in a good portfolio of equity mutual funds. I would recommend you to stay away from direct equity if you do not have a prior knowledge and experience of stock market investing. And you would have a much bigger corpus at your disposal, if you increase this monthly investment by about 10% per year as your salary increase.

But please remember that:-
1. You should be comfortable with investing in stock markets and its regular gyrations.
2. Do not attempt to time the market by trying to get out or get it at any supposedly ‘opportune’ moments – it doesn’t work so.
3. Inflation at about 6% per year will continuously deplete the value of your money. SO be very sure that your calculation of Rs 1 Crore is sufficient to give you the required monthly income month-after-month. Eg, if you require Rs 50,000 today for your monthly expenses, 13 years later, you will require you will require about Rs 1.07 Lakhs for the same standard of living.

Ans: Usually ready to move in properties are priced on the higher side compared to the under construction properties. If you have liquidity that you expect in the construction period, it would reduce your loan requirement.
However, one needs to be very careful about going with a builder who has a good track record of on-time completion.