विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Santhosh
Ramalingam Kalirajan9383 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 11, 2025
Asked on - Jun 10, 2025
I have about 16-18lakhs accumulated in FDs, chit funds 3L, which i'm planning to use for house downpayment (incl gst, registration). Then i need about 65L-70L house loan, targeting emi of 61.5k-67k (20k rent + sip 30k planned for this) with tenure 16yrs @8.35%
Apart from this i hold 11L in MFs, 7.3L stocks, also 2L in nps, not planning to withdraw PF balance. Along with emi ive RD setup for insurance & next year school fee (1st term), and planning to continue SIP worth 15k. Need to pay 20k rent for another 6months, advance return will be 45k. Im expecting take home salary of 1.75L (after few months).
Since all FDs are liqudated, ive to start accumulating for emergency fund.
Is it right plan to buy a house now? Downpayment is eating the FDs,, but i could sell MF or Eq for urgent needs.
Ans: You have given clear insights into your current financial standing. It helps plan the next steps well.
Buying a house is a big decision. It needs careful review of many factors. Let’s evaluate your plan across all aspects, one by one.
Down Payment: Heavy on Liquid Assets
You are planning to use Rs. 16-18L FDs and Rs. 3L chit funds.
These are your only highly liquid and safe assets now.
Using all for down payment leaves zero cushion.
This exposes your family to risks of financial shocks.
Assessment:
It’s risky to put entire FDs into property purchase.
Liquidating all FDs for one-time use is not a wise move.
Down payment should ideally come from surplus, not safety reserves.
Loan Amount and EMI Load
You plan Rs. 65L–70L home loan.
EMI expected: Rs. 61.5k to Rs. 67k for 16 years.
Target is to manage EMI using Rs. 20k rent + Rs. 30k SIP budget.
Review:
Rent received is temporary for 6 months only.
Once rent stops, EMI load will depend on income and SIP cuts.
Total EMI is 35%-38% of future take-home. That’s borderline high.
Risks:
You are using planned SIP amount to support EMI. This weakens long-term goals.
Overdependence on uncertain rent income is risky.
Future hikes in interest rate may stretch the EMI further.
Emergency Fund: Empty Now
Your FDs will be gone.
You mentioned emergency fund has to be started from scratch.
That’s a major concern.
Insights:
At least 4 to 6 months of expenses must be set aside first.
This is non-negotiable before taking any big financial step.
Emergency fund protects your house EMI from job loss or medical emergencies.
Suggestions:
Allocate Rs. 3L–4L to liquid mutual funds for emergencies.
Build over 6-8 months slowly, if full amount not possible now.
Don’t touch equity or mutual funds for emergency.
Your Existing Investments: Strong Foundation
You have:
Rs. 11L in mutual funds
Rs. 7.3L in stocks
Rs. 2L in NPS
Assessment:
This is a healthy long-term portfolio.
Mutual funds are ideal for long-term wealth building.
Stocks give good growth, but carry high risk.
Caution:
Don’t depend on stocks or MFs for emergency or house EMI.
Withdrawals from these should be for only long-term goal shortfalls.
Your Mutual Fund Choices: Need Review
You didn’t mention if these are direct or regular funds. Let me explain:
If They Are Direct Mutual Funds:
There are major concerns:
You may miss expert reviews and rebalancing.
Performance tracking is manual and inconsistent.
Poor fund choices can stay in your portfolio longer.
Emotional decisions (panic sell or hold) often go unchecked.
Better Option:
Shift to regular plans via Certified Financial Planner and Mutual Fund Distributor.
You get portfolio review, tax guidance, and rebalancing support.
This service cost is small but adds huge value.
Equity Mutual Funds vs. Index Funds
If you are using index funds, consider these drawbacks:
No flexibility in tough markets.
Index funds can’t exit underperforming stocks.
You carry both good and bad stocks equally.
Risk-adjusted returns may be lower.
Why Actively Managed Funds are Better:
Fund managers can respond to market changes.
Underperformers are removed actively.
You get better risk-adjusted returns.
Certified Financial Planners can help you pick the right ones.
ULIPs or LIC: If You Have These, Take Action
If your portfolio has any of the following:
ULIPs (Unit Linked Insurance Plans)
Endowment or money-back LIC plans
Investment-cum-insurance products
Then you must surrender them.
Why?
Low returns (4%-5%) compared to inflation.
Lock-ins and poor transparency.
No flexibility in withdrawals.
Reinvest Better:
Surrender and reinvest in mutual funds.
Use regular funds with Certified Financial Planner support.
Get better growth and flexibility.
Insurance and School Fees Planning
You have a good system with RD for future insurance and school fees. That’s appreciable.
Continue RD till that goal is met.
Don’t let EMI pressure break this RD cycle.
Tip:
Label your RDs with exact purpose (e.g. “School Fee RD”).
This builds discipline and prevents misuse.
SIP Plan: Reduce Temporarily, Resume Soon
You planned Rs. 30k SIP, but then revised to Rs. 15k.
This shows you are aware of cash flow needs.
That’s a mature decision.
Recommendation:
Continue with Rs. 15k for next 12 months.
Once rent stops and salary rises, increase SIP in steps.
Try to reach Rs. 30k within 18 months.
Don’t stop SIP unless absolutely forced.
Rent Advance & Timeline: Useful Leverage
Rs. 20k rent for 6 months = Rs. 1.2L outgo.
Rs. 45k advance return can be parked in emergency fund.
Suggestion:
When you get back the advance, don’t use it for EMI.
Park in liquid fund for emergencies or school fee buffer.
Cash Flow Planning for First 2 Years
You are in a critical transition period now.
For First 12 Months:
Keep spending tight.
Avoid new liabilities.
Save all bonuses and variable income.
For Year 2 and 3:
Prioritise building emergency fund fully.
Resume full SIPs.
Don’t add new loans or card EMIs.
Tax Planning: Keep This in Mind
If you plan to redeem mutual funds:
Equity Mutual Funds:
LTCG above Rs. 1.25L taxed at 12.5%.
STCG taxed at 20%.
Debt Mutual Funds:
Both LTCG and STCG taxed as per your income slab.
Tip:
Avoid selling equity funds for urgent needs.
If you must, pick lowest gain funds to reduce tax hit.
Buying House Now: Yes or Wait?
Let’s now answer your core question.
You are financially aware. You are planning well. That’s impressive.
But current situation has few red flags:
No emergency fund.
Using entire FDs leaves zero cushion.
EMI depends partly on temporary rent and SIP cuts.
So, what should you do?
Ideal 360-Degree Action Plan:
Delay house buying by 6–9 months.
Build emergency fund (Rs. 3L–4L) first.
Let salary rise and SIPs settle.
Rework house budget slightly down.
Smaller loan = lower EMI.
Less pressure on SIP and RD.
Don’t use stocks or MFs for house needs.
Let them grow for long term.
Keep SIP going, even at lower pace.
Don’t stop completely.
Work with Certified Financial Planner.
Review MFs regularly.
Get guidance on fund switch, rebalancing, tax impact.
Finally
Buying a house is good, but timing matters.
Use savings wisely. Don’t over-stretch.
Emergency fund is more important than down payment.
Keep long-term investments untouched.
Give your plan another 6–9 months. Then go ahead strongly.
You are already making thoughtful decisions. Just one small wait can give you stronger base.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Buying a house is a big decision. It needs careful review of many factors. Let’s evaluate your plan across all aspects, one by one.
Down Payment: Heavy on Liquid Assets
You are planning to use Rs. 16-18L FDs and Rs. 3L chit funds.
These are your only highly liquid and safe assets now.
Using all for down payment leaves zero cushion.
This exposes your family to risks of financial shocks.
Assessment:
It’s risky to put entire FDs into property purchase.
Liquidating all FDs for one-time use is not a wise move.
Down payment should ideally come from surplus, not safety reserves.
Loan Amount and EMI Load
You plan Rs. 65L–70L home loan.
EMI expected: Rs. 61.5k to Rs. 67k for 16 years.
Target is to manage EMI using Rs. 20k rent + Rs. 30k SIP budget.
Review:
Rent received is temporary for 6 months only.
Once rent stops, EMI load will depend on income and SIP cuts.
Total EMI is 35%-38% of future take-home. That’s borderline high.
Risks:
You are using planned SIP amount to support EMI. This weakens long-term goals.
Overdependence on uncertain rent income is risky.
Future hikes in interest rate may stretch the EMI further.
Emergency Fund: Empty Now
Your FDs will be gone.
You mentioned emergency fund has to be started from scratch.
That’s a major concern.
Insights:
At least 4 to 6 months of expenses must be set aside first.
This is non-negotiable before taking any big financial step.
Emergency fund protects your house EMI from job loss or medical emergencies.
Suggestions:
Allocate Rs. 3L–4L to liquid mutual funds for emergencies.
Build over 6-8 months slowly, if full amount not possible now.
Don’t touch equity or mutual funds for emergency.
Your Existing Investments: Strong Foundation
You have:
Rs. 11L in mutual funds
Rs. 7.3L in stocks
Rs. 2L in NPS
Assessment:
This is a healthy long-term portfolio.
Mutual funds are ideal for long-term wealth building.
Stocks give good growth, but carry high risk.
Caution:
Don’t depend on stocks or MFs for emergency or house EMI.
Withdrawals from these should be for only long-term goal shortfalls.
Your Mutual Fund Choices: Need Review
You didn’t mention if these are direct or regular funds. Let me explain:
If They Are Direct Mutual Funds:
There are major concerns:
You may miss expert reviews and rebalancing.
Performance tracking is manual and inconsistent.
Poor fund choices can stay in your portfolio longer.
Emotional decisions (panic sell or hold) often go unchecked.
Better Option:
Shift to regular plans via Certified Financial Planner and Mutual Fund Distributor.
You get portfolio review, tax guidance, and rebalancing support.
This service cost is small but adds huge value.
Equity Mutual Funds vs. Index Funds
If you are using index funds, consider these drawbacks:
No flexibility in tough markets.
Index funds can’t exit underperforming stocks.
You carry both good and bad stocks equally.
Risk-adjusted returns may be lower.
Why Actively Managed Funds are Better:
Fund managers can respond to market changes.
Underperformers are removed actively.
You get better risk-adjusted returns.
Certified Financial Planners can help you pick the right ones.
ULIPs or LIC: If You Have These, Take Action
If your portfolio has any of the following:
ULIPs (Unit Linked Insurance Plans)
Endowment or money-back LIC plans
Investment-cum-insurance products
Then you must surrender them.
Why?
Low returns (4%-5%) compared to inflation.
Lock-ins and poor transparency.
No flexibility in withdrawals.
Reinvest Better:
Surrender and reinvest in mutual funds.
Use regular funds with Certified Financial Planner support.
Get better growth and flexibility.
Insurance and School Fees Planning
You have a good system with RD for future insurance and school fees. That’s appreciable.
Continue RD till that goal is met.
Don’t let EMI pressure break this RD cycle.
Tip:
Label your RDs with exact purpose (e.g. “School Fee RD”).
This builds discipline and prevents misuse.
SIP Plan: Reduce Temporarily, Resume Soon
You planned Rs. 30k SIP, but then revised to Rs. 15k.
This shows you are aware of cash flow needs.
That’s a mature decision.
Recommendation:
Continue with Rs. 15k for next 12 months.
Once rent stops and salary rises, increase SIP in steps.
Try to reach Rs. 30k within 18 months.
Don’t stop SIP unless absolutely forced.
Rent Advance & Timeline: Useful Leverage
Rs. 20k rent for 6 months = Rs. 1.2L outgo.
Rs. 45k advance return can be parked in emergency fund.
Suggestion:
When you get back the advance, don’t use it for EMI.
Park in liquid fund for emergencies or school fee buffer.
Cash Flow Planning for First 2 Years
You are in a critical transition period now.
For First 12 Months:
Keep spending tight.
Avoid new liabilities.
Save all bonuses and variable income.
For Year 2 and 3:
Prioritise building emergency fund fully.
Resume full SIPs.
Don’t add new loans or card EMIs.
Tax Planning: Keep This in Mind
If you plan to redeem mutual funds:
Equity Mutual Funds:
LTCG above Rs. 1.25L taxed at 12.5%.
STCG taxed at 20%.
Debt Mutual Funds:
Both LTCG and STCG taxed as per your income slab.
Tip:
Avoid selling equity funds for urgent needs.
If you must, pick lowest gain funds to reduce tax hit.
Buying House Now: Yes or Wait?
Let’s now answer your core question.
You are financially aware. You are planning well. That’s impressive.
But current situation has few red flags:
No emergency fund.
Using entire FDs leaves zero cushion.
EMI depends partly on temporary rent and SIP cuts.
So, what should you do?
Ideal 360-Degree Action Plan:
Delay house buying by 6–9 months.
Build emergency fund (Rs. 3L–4L) first.
Let salary rise and SIPs settle.
Rework house budget slightly down.
Smaller loan = lower EMI.
Less pressure on SIP and RD.
Don’t use stocks or MFs for house needs.
Let them grow for long term.
Keep SIP going, even at lower pace.
Don’t stop completely.
Work with Certified Financial Planner.
Review MFs regularly.
Get guidance on fund switch, rebalancing, tax impact.
Finally
Buying a house is good, but timing matters.
Use savings wisely. Don’t over-stretch.
Emergency fund is more important than down payment.
Keep long-term investments untouched.
Give your plan another 6–9 months. Then go ahead strongly.
You are already making thoughtful decisions. Just one small wait can give you stronger base.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment