Dear Sir/Madam, I am currently a 1st year UG student studying engineering in Sairam Engineering College, But there the lack of exposure and strict academics feels so rigid and I don't like it that. It's like they don't gaf about skills but just wants us to memorize things and score a good CGPA, the only skill they want is you to memorize things and pass, there's even special class for students who don't perform well in academics and it is compulsory for them to attend or else the student and his/her parents needs to face authorities who lashes out. My question is when did engineering became something that requires good academics instead of actual learning and skill set. In sairam they provides us a coding platform in which we need to gain the required points for each semester which is ridiculous cuz most of the students here just look at the solution to code instead of actual debugging. I am passionate about engineering so I want to learn and experiment things instead of just memorizing, so I actually consider dropping out and I want to give jee a try and maybe viteee , srmjeee But i heard some people say SRM may provide exposure but not that good in placements. I may not be excellent at studies but my marks are decent. So gimme some insights about SRM and recommend me other colleges/universities which are good at exposure

Ans: You are in a very strong position. High income, low expense, and good saving habit give you big advantage. With some corrections, you can achieve all goals comfortably.

» Current Position – Strong Foundation

Income is high compared to expenses
EMI is manageable
You already have equity + MF + NPS
Emergency fund exists, but needs strengthening
Clear goals: farmhouse + retirement

» LIC Policy – Review Before Decision
You have LIC from 2019, paying Rs 27k per quarter

Points to check:

What is the return expectation? Usually such policies give low returns
Long lock-in till 2040 reduces flexibility

Suggested approach:

Do not stop immediately
Check surrender value and paid-up value
If returns are low and cover is not needed, consider making it paid-up
Redirect future premium into mutual funds for better growth

» Emergency Fund – Increase Slightly

Current Rs 4 lakh is on the lower side

You should:

Target at least Rs 6 to 8 lakh
Keep in savings + liquid funds

» Home Loan – Partial Payment Strategy

EMI Rs 70k is comfortable for your income

Approach:

Do some part payment, but not aggressive
Balance between loan reduction and wealth creation

Why:

Equity investments over long term can give better returns than loan interest saved
Do not block too much money into loan

» Investment Diversification – Needs Structure
Current mix:

Direct equity Rs 14L
MF Rs 12L
NPS Rs 1L

Concerns:

Direct equity exposure is high
Portfolio may not be diversified properly

You should:

Gradually reduce direct stock exposure if not actively tracked
Increase allocation to diversified, actively managed mutual funds
Continue NPS for retirement discipline

» Farmhouse Goal (Rs 1 Cr in 5 Years) – Critical Planning
This is a large and near-term goal

Important reality:

Equity alone is risky for 5-year horizon
Loan + investment mix required

Approach:

Start a dedicated monthly investment for this goal
Use a mix of:
Short duration / debt funds (safety)
Some hybrid funds (moderate growth)
Avoid pure equity for this goal

Also think:

How much loan you are comfortable taking later
Try to build at least 40–50% from your own corpus

» Retirement Planning – 20 Years Horizon
You are well placed here

Action steps:

Increase MF SIP regularly (step-up every year)
Keep strong allocation to equity for long term
Use NPS as additional disciplined retirement tool

Target:

Build a corpus that can replace your lifestyle income

» Cash Flow Optimisation – Big Opportunity
Income: Rs 3.5 lakh
Expense + EMI: ~Rs 1.2 lakh

You have large surplus

Use this wisely:

Increase SIP significantly
Allocate separately for:
Retirement
Farmhouse
Child/family goals if any

» Risk Protection – Already Strong

Health insurance of Rs 1 Cr is excellent

But check:

Do you have adequate term insurance?
If not:
Take pure term plan (independent of LIC)

» Finally

Do not rush to surrender LIC, evaluate and then make paid-up if needed
Increase emergency fund
Balance loan prepayment and investments
Reduce direct equity risk, increase diversified MF exposure
Plan farmhouse separately with lower-risk investments
Increase SIPs – your biggest strength is surplus income

If you follow this structure, you can achieve both lifestyle goals and retirement without stress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/