विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं

Ramalingam Kalirajan |8330 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 25, 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

Question by Shiva on Apr 25, 2025

Sir, my current in hand salary is about 1.4L, my monthly SIP is of Approx Rs. 30,000. Now am planning to buy a flat in appartment which costs around 60L. Am having liquid cash of 12L where rest of the amount i have to go for Home loan. Should i purchase flat or should i invest in Mutual funds or gold which one is better.

Ans: You are earning Rs 1.4 lakh per month.

You are already doing Rs 30,000 SIP monthly. Very good.

You are now thinking of buying a flat worth Rs 60 lakh.

You have Rs 12 lakh in cash.

Balance Rs 48 lakh will need a home loan.

You also want to know if mutual funds or gold are better.

Let’s now look at your case from 360-degree view.

Every point below will guide you clearly.

Step-by-Step Assessment of Your Current Stage
Your salary is good. It gives strong monthly surplus.

SIP of Rs 30,000 shows you have a good saving habit.

Rs 12 lakh liquid is also a strong backup.

You are ready to make a major financial decision.

But one step at a time is very important.

Let’s evaluate all options together.

Buying a Flat – Things to Consider
You are planning to buy a flat of Rs 60 lakh.

Rs 12 lakh is ready with you.

You will need Rs 48 lakh loan.

That is a high loan amount.

EMI will be around Rs 40,000 to 45,000 per month.

This will reduce your monthly savings.

It may impact your SIP capacity also.

Bank will give loan, but you have to repay for 15–20 years.

Total interest paid will be very high.

Flat will also have maintenance charges.

Also property tax, society fee, repair cost etc.

Selling flat in future is not easy.

It is not liquid.

You are tying up your money in one asset.

This reduces flexibility.

Gold – Good or Not
Gold is emotionally strong in India.

But return is very low in long term.

Gold gives average return of 6% to 7% per year.

It does not beat inflation fully.

Gold is also not giving any monthly income.

Also, physical gold has risk of theft.

You cannot use gold to fund long-term goals.

It is only a small part of portfolio.

At best, 5% to 10% of total money can be in gold.

So, gold should not be your main plan.

Mutual Funds – Are They Better?
Mutual funds offer much better returns.

You are already doing SIP of Rs 30,000. Good job.

Mutual funds are flexible and transparent.

You can increase or reduce SIP anytime.

They beat inflation better than gold or FD.

Also better than home loan savings.

You can invest through regular plan.

With help of Certified Financial Planner.

Actively managed mutual funds are more dynamic.

Fund manager adjusts based on market.

Avoid index funds.

They don’t change with market trends.

Active funds have better long-term growth.

You can also invest via STP.

Or do lump sum in short term and transfer.

Direct Plans vs Regular Plans
Do not invest through direct funds.

No help or advice is available.

Regular funds with CFP support is much better.

You get review, rebalancing, and guidance.

CFPs can help you avoid wrong timing.

And also help plan withdrawal and tax saving.

Renting vs Buying – A Fair Analysis
Buying looks attractive because of asset ownership.

But there are hidden costs.

If you rent a flat, you save big on EMIs.

Also no maintenance, repair burden.

That saving can be invested in mutual funds.

That grows more than property value.

Renting gives you freedom to shift.

Also, easy if job or life changes.

Buying gives peace, but adds big loan pressure.

If you buy now, your SIP may reduce or stop.

That will affect long-term wealth.

What You Can Do Now – Ideal Strategy
Do not rush into property buying.

Think with numbers, not emotion.

Keep Rs 6 lakh as emergency fund.

Keep Rs 6 lakh as medium-term safe fund.

Continue SIP of Rs 30,000.

You can increase it slowly every year.

You can increase SIP by Rs 5,000 every year.

Use step-up SIP method.

After 5–7 years, you can buy a flat fully.

That too without big loan pressure.

Till then your mutual funds will grow.

Your income and savings will also rise.

In future, you may buy with just Rs 20–25 lakh loan.

That is easier to manage.

Till then, you can stay on rent.

Use rent+SIP strategy for 7–10 years.

Risk Management is Key
Don’t use your Rs 12 lakh to pay flat down-payment now.

You will lose liquidity and flexibility.

Loan pressure will also increase mental stress.

Continue investing in mutual funds.

Use mix of large cap, flexi cap, balanced funds.

Avoid ULIPs, annuities, or insurance-linked investments.

Always separate insurance and investment.

Taxation Side – What You Should Know
Home loan gives tax benefits.

But it is not always best reason to buy.

If you invest in mutual funds,

Long-term capital gains over Rs 1.25 lakh taxed at 12.5%.

Short-term gain taxed at 20%.

If you hold long-term, tax is very low.

Tax-efficient and flexible.

Property has stamp duty, registration, GST.

Mutual funds have no such cost.

Lifestyle and Freedom
Home loan is like a 20-year commitment.

That limits life decisions.

Mutual fund investments give you life freedom.

You can take a break. Change job. Travel.

You stay financially independent always.

Final Insights
You are at a strong earning stage.

You have good habits of saving and SIP.

Buying a flat now will reduce your investment power.

Mutual funds will give more growth and flexibility.

Postpone flat buying by 5–7 years.

Build strong portfolio by then.

Use help of Certified Financial Planner for right fund choices.

Rent and invest now. Buy smartly later.

Your wealth and peace of mind will grow together.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Asked on - Apr 26, 2025 | Answered on Apr 26, 2025

My age is 34 years and I have two kids age of 5 & 2, would you please suggest me the best certified financial planner who can manage my portfolio for my children education, my retirement plan and to beat this inflation.

Ans: Thank you for your trust.

It is very wise to plan early for your kids' education and your retirement.

To select a good Certified Financial Planner (CFP) + Mutual Fund Distributor (MFD), follow these simple strategies:

Choose a CFP with minimum 15+ years experience.

Ensure they offer customised, goal-based planning.

Prefer someone who combines investment with risk management advice.

Look for transparent fee structure.

Select someone who is focused on wealth creation, not product pushing.

Check client reviews and testimonials.

Confirm regular portfolio review and rebalancing services.

Prefer a CFP who educates, not just sells.

In case if you want to connect with me(CFP), you can reach me through my website mentioned below.

This platform has restrictions on sharing personal contact. Hope you understand.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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