विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Ramalingam Kalirajan |10878 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on May 15, 2025
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
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 - May 15, 2025
I am 29 and earning 4 lakh per month. I want to purchas home but not on loan. How much should I save every month and and in which mutual fund should I invest so that I will be able to buy a house worth Rs 2 cr in next 5 years
Ans: Buying a Rs. 2 crore house without a loan by age 34 is ambitious and smart. With strong income and discipline, this is possible. Let us now build a step-by-step, practical approach to achieve it.
Let’s look at this with a 360-degree perspective. This includes savings, investment options, asset allocation, risk, taxation, and flexibility.
?
?Target Value Understanding
The home price you want is Rs. 2 crore.
?
Since there is no plan to take a loan, you need the full amount saved.
?
The timeline is 5 years, which is a medium-term goal.
?
Because this is not a long-term goal, the investment must be low to medium risk.
?
You will also need flexibility and liquidity near the fifth year.
?
The value of Rs. 2 crore will not change, as it is assumed to be in today’s terms.
?
?Savings Target Evaluation
To reach Rs. 2 crore in 5 years, you must save and invest every month.
?
A rough estimate shows that you may need to invest around Rs. 2.5 to 2.7 lakh monthly.
?
This assumes a return of 9–10% per year from your investments.
?
You earn Rs. 4 lakh monthly, so this goal is within reach if you maintain high savings.
?
Keep your monthly expenses tight and focused during these 5 years.
?
A disciplined savings plan is more important than investment returns.
?
?Asset Allocation Strategy
Do not invest 100% in equity. That is very risky for 5 years.
?
Use a balanced approach of equity and debt mutual funds.
?
Consider 60% in equity-oriented hybrid or multi-asset funds.
?
Keep 40% in short-duration or conservative hybrid debt funds.
?
This balance gives growth and protection from sudden market fall.
?
Review this mix yearly and reduce equity in last 1.5 years.
?
You may go from 60:40 to 40:60 and then to 20:80 before withdrawal.
?
?Mutual Fund Category Selection
Avoid pure small cap or sector-specific funds. They are too risky.
?
Choose diversified equity mutual funds with good track record.
?
Include large-cap oriented or equity and debt hybrid funds.
?
Debt side can include short-term, low duration, or corporate bond funds.
?
These can give reasonable returns without high risk.
?
Please do not invest in index funds. They follow the market.
?
In volatile times, index funds offer no downside protection.
?
Actively managed funds adjust to market conditions.
?
A good fund manager adds value by protecting capital in bad markets.
?
?Direct vs Regular Fund Investing
Do not invest directly into funds if you are not experienced.
?
Direct plans have lower cost but no guidance or service.
?
Regular plans through Certified Financial Planner offer full support.
?
CFPs select suitable schemes and help review every year.
?
Also help in planning redemptions, tax, and rebalancing.
?
?Taxation Planning and Exit Strategy
Short-term capital gains in equity funds are taxed at 20%.
?
Long-term capital gains above Rs. 1.25 lakh are taxed at 12.5%.
?
For debt funds, all gains are taxed as per your income slab.
?
You are in the highest slab. So, tax planning is key.
?
Start exiting your equity funds in the 4th year in a phased way.
?
Use STP (systematic transfer plan) to move equity gains to low-risk debt.
?
This spreads out gains and helps reduce tax burden.
?
?Liquidity and Risk Management
Market volatility can affect your fund value in short term.
?
So don’t wait till the last month to redeem.
?
Begin moving the funds 12 to 18 months before your house purchase.
?
This protects your goal from any sudden crash.
?
Also, maintain a 3 to 6-month emergency fund in liquid mutual funds.
?
Do not touch this fund even if markets fall.
?
?Contingency and Insurance Coverage
Ensure you have term insurance covering 15–20 times your annual income.
?
This protects your family in case of uncertainty.
?
Have Rs. 25 lakh or more of health insurance as well.
?
Don’t rely only on company insurance.
?
?Avoid These Common Mistakes
Do not keep money in FDs only. FD returns may not beat inflation.
?
Don’t invest in ULIPs or traditional insurance for this goal.
?
Avoid new-age options like crypto or PMS. They carry extra risk.
?
Don’t blindly trust social media fund suggestions.
?
Don’t chase past returns. Choose funds based on quality and process.
?
?Review and Track Progress
Review portfolio every 6 months with a CFP.
?
Stay flexible. Adjust fund types and allocation if needed.
?
Track goal progress. You must stay on Rs. 2 crore path.
?
If market underperforms, increase monthly saving a little.
?
If you earn more in future, raise your SIPs too.
?
?What You’re Doing Right
You are 29 and earning Rs. 4 lakh. Great starting point.
?
You have no loan now. So, more savings power.
?
You have set a clear goal and time frame. Very focused plan.
?
You are avoiding debt. That builds long-term strength.
?
?What You Should Watch Carefully
Don’t let expenses creep up with income growth.
?
Don’t delay investing. Every month matters.
?
Don’t go for short cuts or risky bets.
?
Stick to the plan, stay calm in ups and downs.
?
?How a Certified Financial Planner Helps
A CFP helps you choose funds that match your risk.
?
Helps align tax and liquidity needs.
?
Helps you exit smoothly at the right time.
?
Offers full hand-holding over these 5 years.
?
You focus on earning. Let the planner handle the rest.
?
?Final Insights
Saving around Rs. 2.5 to 2.7 lakh monthly is required.
?
Balanced allocation of equity and debt mutual funds is the way.
?
Stick to plan, monitor annually, reduce equity before maturity.
?
Tax planning, risk control, and goal protection are must.
?
You are already on the right track with strong income and discipline.
?
Make this goal the top priority. Avoid distractions.
?
A home bought debt-free gives great peace and freedom.
?
With focus and care, you will reach this dream in 5 years.
?
Best Regards,
?
K. Ramalingam, MBA, CFP,
?
Chief Financial Planner,
?
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Let’s look at this with a 360-degree perspective. This includes savings, investment options, asset allocation, risk, taxation, and flexibility.
?
?Target Value Understanding
The home price you want is Rs. 2 crore.
?
Since there is no plan to take a loan, you need the full amount saved.
?
The timeline is 5 years, which is a medium-term goal.
?
Because this is not a long-term goal, the investment must be low to medium risk.
?
You will also need flexibility and liquidity near the fifth year.
?
The value of Rs. 2 crore will not change, as it is assumed to be in today’s terms.
?
?Savings Target Evaluation
To reach Rs. 2 crore in 5 years, you must save and invest every month.
?
A rough estimate shows that you may need to invest around Rs. 2.5 to 2.7 lakh monthly.
?
This assumes a return of 9–10% per year from your investments.
?
You earn Rs. 4 lakh monthly, so this goal is within reach if you maintain high savings.
?
Keep your monthly expenses tight and focused during these 5 years.
?
A disciplined savings plan is more important than investment returns.
?
?Asset Allocation Strategy
Do not invest 100% in equity. That is very risky for 5 years.
?
Use a balanced approach of equity and debt mutual funds.
?
Consider 60% in equity-oriented hybrid or multi-asset funds.
?
Keep 40% in short-duration or conservative hybrid debt funds.
?
This balance gives growth and protection from sudden market fall.
?
Review this mix yearly and reduce equity in last 1.5 years.
?
You may go from 60:40 to 40:60 and then to 20:80 before withdrawal.
?
?Mutual Fund Category Selection
Avoid pure small cap or sector-specific funds. They are too risky.
?
Choose diversified equity mutual funds with good track record.
?
Include large-cap oriented or equity and debt hybrid funds.
?
Debt side can include short-term, low duration, or corporate bond funds.
?
These can give reasonable returns without high risk.
?
Please do not invest in index funds. They follow the market.
?
In volatile times, index funds offer no downside protection.
?
Actively managed funds adjust to market conditions.
?
A good fund manager adds value by protecting capital in bad markets.
?
?Direct vs Regular Fund Investing
Do not invest directly into funds if you are not experienced.
?
Direct plans have lower cost but no guidance or service.
?
Regular plans through Certified Financial Planner offer full support.
?
CFPs select suitable schemes and help review every year.
?
Also help in planning redemptions, tax, and rebalancing.
?
?Taxation Planning and Exit Strategy
Short-term capital gains in equity funds are taxed at 20%.
?
Long-term capital gains above Rs. 1.25 lakh are taxed at 12.5%.
?
For debt funds, all gains are taxed as per your income slab.
?
You are in the highest slab. So, tax planning is key.
?
Start exiting your equity funds in the 4th year in a phased way.
?
Use STP (systematic transfer plan) to move equity gains to low-risk debt.
?
This spreads out gains and helps reduce tax burden.
?
?Liquidity and Risk Management
Market volatility can affect your fund value in short term.
?
So don’t wait till the last month to redeem.
?
Begin moving the funds 12 to 18 months before your house purchase.
?
This protects your goal from any sudden crash.
?
Also, maintain a 3 to 6-month emergency fund in liquid mutual funds.
?
Do not touch this fund even if markets fall.
?
?Contingency and Insurance Coverage
Ensure you have term insurance covering 15–20 times your annual income.
?
This protects your family in case of uncertainty.
?
Have Rs. 25 lakh or more of health insurance as well.
?
Don’t rely only on company insurance.
?
?Avoid These Common Mistakes
Do not keep money in FDs only. FD returns may not beat inflation.
?
Don’t invest in ULIPs or traditional insurance for this goal.
?
Avoid new-age options like crypto or PMS. They carry extra risk.
?
Don’t blindly trust social media fund suggestions.
?
Don’t chase past returns. Choose funds based on quality and process.
?
?Review and Track Progress
Review portfolio every 6 months with a CFP.
?
Stay flexible. Adjust fund types and allocation if needed.
?
Track goal progress. You must stay on Rs. 2 crore path.
?
If market underperforms, increase monthly saving a little.
?
If you earn more in future, raise your SIPs too.
?
?What You’re Doing Right
You are 29 and earning Rs. 4 lakh. Great starting point.
?
You have no loan now. So, more savings power.
?
You have set a clear goal and time frame. Very focused plan.
?
You are avoiding debt. That builds long-term strength.
?
?What You Should Watch Carefully
Don’t let expenses creep up with income growth.
?
Don’t delay investing. Every month matters.
?
Don’t go for short cuts or risky bets.
?
Stick to the plan, stay calm in ups and downs.
?
?How a Certified Financial Planner Helps
A CFP helps you choose funds that match your risk.
?
Helps align tax and liquidity needs.
?
Helps you exit smoothly at the right time.
?
Offers full hand-holding over these 5 years.
?
You focus on earning. Let the planner handle the rest.
?
?Final Insights
Saving around Rs. 2.5 to 2.7 lakh monthly is required.
?
Balanced allocation of equity and debt mutual funds is the way.
?
Stick to plan, monitor annually, reduce equity before maturity.
?
Tax planning, risk control, and goal protection are must.
?
You are already on the right track with strong income and discipline.
?
Make this goal the top priority. Avoid distractions.
?
A home bought debt-free gives great peace and freedom.
?
With focus and care, you will reach this dream in 5 years.
?
Best Regards,
?
K. Ramalingam, MBA, CFP,
?
Chief Financial Planner,
?
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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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