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Ans: Your daughter has taken a bold step by investing in her higher education abroad. A Rs 31 lakh education loan is a major responsibility. Paying Rs 14 lakh already shows commitment. Now, with EMI starting at Rs 36,030/month and 102 months remaining, it’s wise to assess both the emotional and financial impact of the next steps. You're asking the right question: whether to prepay the loan or invest the surplus for better returns.

Let’s look at this decision from all key angles before arriving at the most optimal action plan.

? Loan profile – understand the real cost of borrowing

– Total loan taken: Rs 31 lakh
– Interest rate: 11% (high compared to home or auto loans)
– Moratorium period: 18 months since Jan 2024
– EMI starts: likely around July 2025 onwards
– EMI: Rs 36,030
– Remaining tenure: approx. 8.5 years

– Rs 14 lakh already repaid – very good progress.
– Remaining principal is around Rs 17 lakh.
– At 11%, interest will still be a large portion.

? Two paths ahead – prepay vs invest

Option 1: Prepay Rs 2 lakh per month and close the loan early
Option 2: Pay only EMI and invest Rs 2 lakh in mutual funds expecting 12–14% returns

– Both options have benefits and trade-offs.
– Let’s evaluate them side by side.

? Option 1: Aggressive prepayment of loan

– Pros:

Guaranteed interest saving of 11% on every rupee prepaid

No tax on interest saved

Emotional peace of being debt-free early

Improves CIBIL score quickly

Loan burden finishes faster – less stress

– Cons:

You lock money in loan, can’t access in emergencies

You miss the compounding opportunity of equity mutual funds

You lose interest deduction under Section 80E

– Overall: Works best if you are conservative, dislike debt, or want guaranteed returns.

? Option 2: Invest Rs 2 lakh monthly in mutual funds

– Pros:

Can earn 12–14% average returns over long term

Better than 11% interest cost, but not guaranteed

Liquidity remains – you can redeem partially in need

Long-term wealth creation beyond loan repayment

Funds can later be used for other goals or full prepayment

– Cons:

Equity returns are not fixed – they vary

In early years, returns may be lower than loan interest

Emotional discomfort of carrying loan while investing

Section 80E interest benefit only available on paid interest

– Overall: Best if you are disciplined, have long-term horizon, and can handle some risk.

? Important behavioural point – peace vs potential

– Some people prefer peace of mind.
– Others prefer potential higher wealth in long term.
– Think of your emotional comfort as well.

– If debt-free life matters more to you, prepay fast.
– If you're comfortable with some market volatility, then invest.

? Hybrid path: Mix prepayment and SIP investing

– This may suit you best.
– Split the Rs 2 lakh into two parts:

Rs 1 lakh/month towards loan prepayment

Rs 1 lakh/month towards mutual fund SIPs

– This brings balance:

Loan finishes faster

Investments also grow simultaneously

You keep partial liquidity

You enjoy both mental and financial satisfaction

? Tax consideration – Section 80E

– Interest paid on education loan is tax deductible under Section 80E.
– No cap on deduction.
– Available for 8 years from the year you start repaying.

– You must pay actual interest to claim it.
– If you close loan early, deduction benefit ends.
– This benefit adds effective saving of up to 30% (based on tax slab).

– So, stretching repayment over few years is also helpful.

? Why mutual funds are powerful for wealth growth

– Equity mutual funds are best for long-term compounding.
– They deliver 12–14% average over 7–10 years.
– No fixed return, but inflation-beating and tax efficient.

– SIPs bring rupee-cost averaging benefit.
– You reduce entry risk and create wealth silently.

– Mutual funds are better than FDs, gold, or endowment policies.
– They grow faster and are more liquid.

? Don’t choose index funds if aiming for 12–14%

– Index funds only match the market.
– No fund manager adjusts based on risks.

– When market falls, index funds fall fully.
– No downside protection is available.

– Actively managed equity mutual funds are better.
– Skilled fund managers select high-growth companies.
– They switch sectors and manage risks.

– This helps beat index returns in long term.
– So, avoid index funds in this case.

? Also avoid direct funds – choose regular plan via CFP

– Direct mutual funds look cheaper.
– But no guidance or support during market stress.

– People often exit during market dips.
– This reduces long-term gains.

– Regular mutual funds through CFP-backed MFD offer expert support.
– Portfolio reviews, fund switching, and asset rebalancing made easier.

– That small commission gives huge value.
– Helps you stay on course for better results.

? Suggested mutual fund types for Rs 1 lakh monthly SIP

Multi-cap funds – for diversification across large, mid, small caps

Flexi-cap funds – for dynamic stock picking

Large & mid-cap funds – for balanced growth

Focused equity funds – for concentrated high-conviction bets

ELSS (optional) – if 80C benefit is required

– Allocate across 3 to 4 good quality funds.
– Don’t invest full amount in one fund.

– Choose regular plans through Certified Financial Planner.
– Let your SIPs run for at least 7–10 years.
– Stay invested even during market falls.

? Liquidity and flexibility with mutual funds

– Unlike loans, mutual funds are fully liquid.
– You can redeem partly or fully anytime.
– No penalty on exit after 1 year in equity funds.

– Use mutual funds as emergency backup as well.
– Also helps manage future expenses or family goals.

– Debt-free life is good.
– But financially free life is better.
– Mutual funds help you move towards that.

? Finally

– Prepaying education loan fully gives safety and peace.
– Investing in mutual funds gives higher growth, if managed right.

– Best strategy is to split your Rs 2 lakh monthly surplus.
– Use Rs 1 lakh for loan prepayment.
– Use Rs 1 lakh in SIP across actively managed equity mutual funds.

– This balances emotion, growth, and liquidity.
– Also retains Section 80E tax benefit.

– Take guidance from a Certified Financial Planner.
– Use only regular funds via qualified MFD.
– Avoid index and direct plans.

– Let your money work smartly and silently.
– Your daughter’s loan will reduce and wealth will grow too.

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

Ans: Amalraj, PSG College of Technology (PSG Tech) in Coimbatore is renowned for its legacy, strong industry collaborations, and academic excellence, particularly in engineering disciplines such as Electrical and Electronics Engineering (EEE). The EEE branch at PSG Tech benefits from a comprehensive curriculum, experienced faculty, and extensive laboratory infrastructure, nurturing students with both theoretical depth and practical skills. While specific EEE placement data is not directly published, overall undergraduate placements at PSG Tech have consistently ranged from 71% to 79% over the last three years, with several departments reporting higher rates, reflecting stable industry demand and a strong alumni base in core and IT sectors. EEE graduates typically secure placements in leading companies and government entities, with opportunities extending to research and higher education due to the program’s academic rigor.

In contrast, PSG Institute of Technology and Applied Research (PSG iTech), though newer, has swiftly gained recognition for academic innovation and strong placement records, particularly in branches like Electronics and Communication Engineering (ECE). The ECE branch offers an up-to-date curriculum, focusing on fields like communications, microelectronics, and embedded systems, supported by industry-standard labs and faculty drawn from top institutions. Placement records for PSG iTech are impressive: the ECE branch achieved a 100% placement rate in the most recent batch, consistently above 95% over the past three years, with graduates securing roles in core electronics, IT, and consulting giants. The institution emphasizes hands-on training, industry collaboration, and research through centers of excellence and internship programs, ensuring students are industry-ready.

Comparatively, both institutions excel in infrastructure, faculty quality, industry connection, opportunities for internships and projects, and transparent placement processes. However, PSG iTech’s consistently high placement percentages in the ECE branch, modern pedagogy, and tailored industry partnerships make it particularly appealing for students seeking robust campus recruitment and diverse career outlooks.

RECOMMENDATION: For a student choosing between EEE at PSG Tech and ECE at PSG iTech, ECE at PSG iTech is the better option due to its outstanding placement rates, progressive curriculum, and industry focus, ensuring greater immediate employability and versatility in both core and technology-driven roles. All the BEST for a Prosperous Future!

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Ans: Amalraj, PSG College of Technology (PSG Tech) in Coimbatore is renowned for its legacy, strong industry collaborations, and academic excellence, particularly in engineering disciplines such as Electrical and Electronics Engineering (EEE). The EEE branch at PSG Tech benefits from a comprehensive curriculum, experienced faculty, and extensive laboratory infrastructure, nurturing students with both theoretical depth and practical skills. While specific EEE placement data is not directly published, overall undergraduate placements at PSG Tech have consistently ranged from 71% to 79% over the last three years, with several departments reporting higher rates, reflecting stable industry demand and a strong alumni base in core and IT sectors. EEE graduates typically secure placements in leading companies and government entities, with opportunities extending to research and higher education due to the program’s academic rigor.

In contrast, PSG Institute of Technology and Applied Research (PSG iTech), though newer, has swiftly gained recognition for academic innovation and strong placement records, particularly in branches like Electronics and Communication Engineering (ECE). The ECE branch offers an up-to-date curriculum, focusing on fields like communications, microelectronics, and embedded systems, supported by industry-standard labs and faculty drawn from top institutions. Placement records for PSG iTech are impressive: the ECE branch achieved a 100% placement rate in the most recent batch, consistently above 95% over the past three years, with graduates securing roles in core electronics, IT, and consulting giants. The institution emphasizes hands-on training, industry collaboration, and research through centers of excellence and internship programs, ensuring students are industry-ready.

Comparatively, both institutions excel in infrastructure, faculty quality, industry connection, opportunities for internships and projects, and transparent placement processes. However, PSG iTech’s consistently high placement percentages in the ECE branch, modern pedagogy, and tailored industry partnerships make it particularly appealing for students seeking robust campus recruitment and diverse career outlooks.

RECOMMENDATION: For a student choosing between EEE at PSG Tech and ECE at PSG iTech, ECE at PSG iTech is the better option due to its outstanding placement rates, progressive curriculum, and industry focus, ensuring greater immediate employability and versatility in both core and technology-driven roles. All the BEST for a Prosperous Future!

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Ans: Hemant Sir, CSE (Computer Science Engineering) and CSE Design (Computer Science and Design) both offer robust career paths but with distinct academic orientations and future opportunities. CSE focuses deeply on core computing, software development, algorithms, AI, machine learning, and data science, emphasizing technical breadth and hands-on skills essential for the mainstream IT, analytics, fintech, and core engineering sectors. Its curriculum is rigorous, covering programming, databases, system architecture, and the latest technological evolutions such as cloud computing and cybersecurity, making it ideal for students aiming for versatile roles including software developer, data scientist, cloud architect, or cybersecurity expert. Placement records in CSE are highly favorable—with premier engineering institutions reporting placement percentages averaging between 66% and 98% in the last three years, underscoring stability even amid market shifts.

CSE Design, in contrast, integrates design thinking, user experience (UX), and interactive technology with foundational computer science. The syllabus highlights HCI (Human-Computer Interaction), digital media, graphics, and creative design skills alongside programming, tailored for roles where technology and creativity intersect—such as UX/UI designer, front-end developer, or product designer. While demand is rising for professionals who blend coding with creative digital design, the total number of placements and recruiting companies remains relatively lower than core CSE. Yet, CSE Design provides a unique niche for those passionate about emerging interfaces, user experience, and the digital creative economy.

For girl students, both streams are highly inclusive as the tech industry advances gender diversity, with top recruiters actively seeking female technologists and designers. Engineering colleges report rising placement rates for women, now exceeding 80% in many reputable institutions as companies adopt diversity targets and supportive work environments.

Key institutional priorities should include accreditation, experienced faculty, state-of-the-art labs, strong industry linkage for internships/projects, and transparent placement records—all of which directly shape academic experience and employability.

In summary, CSE provides broader career opportunities, greater placement consistency, and versatile skill development suitable for mainstream IT, emerging tech sectors, and higher studies—a strong platform with ample support for women.

RECOMMENDATION: For a girl student in PCMC, Pune, CSE is the better choice due to its expansive curriculum, greater placement scope, and established support for women in tech, ensuring excellent career flexibility and long-term prospects in a dynamic digital world. All the BEST for Your Daughter's Prosperous Future!

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Ans: You’re aiming for a minimum 12% return—that’s a strong, ambitious goal. Very few investment options can offer this consistently and sustainably, especially without taking higher risk. But with long-term discipline, goal clarity, and guided fund selection, it is possible to target this return in a planned and structured way.

Let’s evaluate this properly.

? No fixed-return product gives 12% return

– Bank FDs give 6% to 7% only.
– PPF gives about 7.1%.
– Senior citizen schemes give slightly more.
– All of these are safe but low-return options.

– They can never reach 12% returns.
– So you need to move beyond fixed-income tools.

? Mutual funds can help you aim for 12%

– Only equity mutual funds can offer 12% average over time.
– Not every year, but over 10–15 years, it is achievable.

– You must choose quality actively managed equity mutual funds.
– They outperform inflation and other asset classes.

– SIPs help reduce risk of market entry.
– With long-term SIPs, returns smoothen out.
– Many investors have built wealth this way.

? Avoid index funds if 12% is your goal

– Index funds track the market passively.
– They can’t beat the index.
– No professional manager handles them.

– If markets fall, index funds fall fully.
– They offer no protection in downside.

– You want 12% returns, not average returns.
– So index funds are not ideal.

– Actively managed funds aim to beat index returns.
– Fund managers actively select and shift stocks.
– This creates opportunity to get 12% and more.

? Don’t choose direct mutual fund plans

– Direct plans seem cheaper.
– But they don’t come with proper guidance.

– Without help, you may choose wrong funds.
– Or exit early during market fall.

– These mistakes lower your final return.

– Regular plans via Certified Financial Planner are safer.
– You get fund advice, monitoring, and yearly review.
– This adds real value over time.

– So choose regular plans through a CFP-backed MFD.
– A small fee saves big mistakes.

? Risk and time are two must factors

– Equity returns are not linear.
– Some years will be very high, others may be flat.

– If you invest for 1–3 years, returns may be low or negative.
– But for 7–15 years, returns smoothen out.

– So you must be ready to wait.
– Patience is the secret behind 12% return.

– Also, you must accept some market risk.
– But this risk reduces with time and discipline.

? Asset allocation decides your overall return

– If you put 100% in equity, risk is high.
– But returns can go near 12%.

– If you mix equity and debt, returns reduce slightly.
– But risk also becomes manageable.

– So mix should match your goal horizon.
– For long-term goals (10–15 years), high equity is okay.

– For short-term goals (1–3 years), equity is risky.
– So decide asset mix based on goal and time.

? What kind of funds to consider

– Diversified large-cap and flexi-cap funds suit long term.
– Also consider multi-cap and focused equity categories.
– Avoid sector funds or thematic funds—they are risky.

– For short-term, use debt or liquid funds only.
– Don’t expect 12% from these.

– Always invest with goal clarity.
– Without goals, you may stop early and lose compounding benefit.

? Increase SIP every year to beat inflation

– Even if return is 12%, your goal amount grows with inflation.
– So increase SIP by 10–15% yearly.
– This keeps you ahead of inflation.

– Don’t stop SIP during market falls.
– That’s the time to stay invested and buy cheap units.

– If you stay consistent, 12% becomes reachable.

? Tax efficiency helps retain more return

– Equity funds held for over 1 year are taxed as LTCG.
– New rule: LTCG above Rs 1.25 lakh taxed at 12.5%.

– Short-term gains are taxed at 20%.
– For debt funds, gains are taxed as per your slab.

– So use equity funds for long-term goals only.
– This keeps taxes low and return high.

– Also, don’t redeem fully unless goal is near.
– Use partial withdrawal for higher tax efficiency.

? Avoid these common return-killers

– Stopping SIP during market fall
– Choosing wrong fund without research
– Investing in insurance-cum-investment plans
– Mixing short-term goals with equity funds
– Jumping between funds too often

– All these reduce final return.
– Even good funds give poor returns if handled badly.
– Guidance from a Certified Financial Planner avoids these traps.

? Avoid ULIPs, LIC policies for investment returns

– If you hold endowment or ULIP, surrender if policy is old enough.
– They give 4% to 5% only.

– Reinvest in mutual funds for better growth.
– Keep insurance and investment separate.

– Term insurance gives protection.
– Mutual funds give wealth creation.
– Don’t mix them.

? Track your goal and adjust portfolio

– Review once a year.
– Are your funds doing well?
– Are you on track for your target?

– If not, make changes with planner’s help.
– Rebalancing helps you reduce risk closer to goal.

– Don’t keep the same mix till the end.
– Shift from equity to hybrid or debt as goal nears.

– This locks the returns you already earned.

? Finally

– 12% return is not a promise.
– But it is a reachable target with equity mutual funds.

– Stay invested for minimum 10–15 years.
– Use SIPs in actively managed mutual funds.

– Avoid index funds and direct plans.
– Take support from a Certified Financial Planner.

– Match fund type with goal horizon.
– Review yearly and rebalance if needed.

– With right approach and patience, your money can grow well.
– Don’t chase returns—follow the process.
– Return will follow naturally.

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

Ans: Hello dear.
Your son has a chance of getting ECE/EE in lower or mid-tier NITs, possibly NIT Durgapur, as it's his home state.

Good luck.
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Radheshyam

Ans: Don Bosco Institute of Technology Bengaluru’s Information Science & Engineering branch offers a well-structured curriculum, industry-relevant teaching, and experienced, supportive faculty. The campus is modern with well-equipped labs, Wi-Fi-enabled smart classrooms, and vibrant sports and extracurricular setups. Hostel and mess facilities are well-maintained, and students enjoy a positive learning environment and peer culture. Placement records are mixed but generally satisfactory: the institute reports 70–85% of eligible ISE students placed recently, mainly in IT firms like Infosys, Wipro, Capgemini, and Accenture, although top-tier placements are rare and opportunities can vary by year and student skill level. Some alumni praise faculty, infrastructure, campus life, and placement support, while negative feedback points to inconsistent placement assistance, the need for self-driven skill development, and average industry exposure compared to elite institutes. Persistent efforts in training, internships, and projects can leverage placement opportunities, but the outcome is best for proactive students.

Recommendation: Don Bosco Institute of Technology Bengaluru is a reasonable choice for Information Science & Engineering if your son seeks excellent infrastructure, supportive faculty, and decent placements in Bangalore. Its environment rewards motivated, self-driven students, but those targeting premier slots should maintain flexible expectations and proactively enhance their skills throughout the course. All the BEST for a Prosperous Future!

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Ans: Usually after the admission process, there could be vacancy in different colleges as some students may withdraw admission because they have got admission in some other college. So you can approach the college directly. There are some colleges which are not affiliated to the University which may not accept CET. Try Flame in Pune, Atlas in Mumbai.

Ans: Hello dear
Based on our knowledge, if you choose "Accept and Upgrade" in COMEDK counselling, the Round 1 fee is adjusted in Round 3, so you won’t pay again, and no refund is issued unless you withdraw. However, it is highly recommended to review the COMEDK brochure in detail and, if possible, try to communicate with the competent authorities either via email or the helpline number mentioned on the official website.


Good luck.
Follow me if you receive this reply..
Radheshyam

Ans: UPES is a better known college as compared to Chandigarh Univ for MBA. Check the placements of both colleges before you decide.