I have mutual fund holdings of approx 80 lacs,stock holdings of 13.5 lacs,pf of 1.5 lacs,fd worth 29 lacs with monthly interest and monthly income from all sources is approx 1.1 lacs as I am also in mutual fund distribution along with my job as I started this last year. I have no liabilities now and have a joint 2 bhk flat in Andheri east worth 1.3 crores and 1 bhk in badlapur worth 25 lakhs which is on rent. I have a 1 crore term plan with 12 year fix term payment with 6 payments gone and company mediclaim of 15 lacs and personal mediclaim of 3 lacs.
I needed a 2nd flat closeby in Andheri but I am afraid to take a loan but still I need suggestions for how much loan can I take.my cibil score is above 750.also,please suggest on my financial assesment.
Ans: You have managed your assets thoughtfully so far. Your growing income sources and debt-free status give you a strong base. Let’s now do a 360-degree financial assessment and also evaluate your loan eligibility for the second flat.
Your Asset Composition – A Quick Snapshot
Mutual fund investments – Rs. 80 lakhs
Direct equity stocks – Rs. 13.5 lakhs
Provident fund – Rs. 1.5 lakhs
Fixed deposits – Rs. 29 lakhs (monthly interest income)
Rental income – from Badlapur property
Job and mutual fund distribution income – around Rs. 1.1 lakhs per month
2BHK in Andheri East – worth Rs. 1.3 crores (joint ownership)
1BHK in Badlapur – worth Rs. 25 lakhs (on rent)
You have no ongoing loans or EMIs. That puts you in a secure place to plan forward.
Income and Cash Flow Stability
Monthly income from job + distribution – Rs. 1.1 lakhs
Rental income – additional, though unspecified, adds to cushion
FD interest – offers another passive flow
You are maintaining three sources of income. That reduces risk. You are not dependent on only one source.
Monthly inflows appear to cover your lifestyle. That is a good sign. However, no mention of current monthly expenses. It would help to track and limit discretionary spends.
Mutual Fund Investment Position
You hold Rs. 80 lakhs in mutual funds. That’s a significant allocation.
But you haven't specified the fund types — equity, hybrid, or debt. Also, no clarity on regular or direct option.
If your investments are in direct funds, consider switching to regular plans through a Certified Financial Planner (CFP) and Mutual Fund Distributor (MFD).
Why? Because regular plans offer personal guidance, timely portfolio reviews, and strategic rebalancing.
Direct plans may appear cheaper. But without expert help, costly mistakes can happen. Wrong fund choices or wrong exit timing can eat away gains.
If your investments are in index funds, be cautious. Index funds copy the market. They don’t beat the market.
They offer no downside protection during market falls. Actively managed funds aim to give better returns than index.
Index funds don’t adapt to market changes. Good fund managers in active funds do that.
A regular portfolio review by a Certified Financial Planner will help. You should optimise risk and returns.
Stock Market Investments
You have Rs. 13.5 lakhs in direct equities. That is about 12% of your total financial assets.
This is fine if your risk appetite is high. But do monitor sector concentration and liquidity of stocks.
Direct equity needs time and discipline. Avoid overlapping stocks already held through mutual funds.
Also, have a clear exit plan. Don’t wait for all-time highs to sell. Book profits periodically.
Fixed Deposits – Income Use and Taxation
Rs. 29 lakhs in FDs gives you monthly income. This is useful for regular cash flow.
But remember:
FD interest is fully taxable
Returns may not beat inflation
Long-term wealth growth is limited
Keep only what you need for liquidity. Shift the rest to mutual funds through STP or lump sum.
This way, you earn better post-tax returns and reduce reinvestment risk.
Insurance and Protection Cover
Term Insurance – Rs. 1 crore cover with 12-year payment term. 6 premiums already paid. That’s a responsible move.
If your dependents are financially independent or assets cover their needs, this cover is enough.
Else, you may increase cover till retirement age using pure term insurance. Avoid return-of-premium type.
Health Insurance –
Company cover – Rs. 15 lakhs
Personal mediclaim – Rs. 3 lakhs
This is sufficient for now. But ensure personal health cover is kept active even if job changes.
Avoid relying only on employer mediclaim. Companies can change policies anytime.
Real Estate Holdings
Joint 2BHK in Andheri East – Worth Rs. 1.3 crores
1BHK in Badlapur – Worth Rs. 25 lakhs and on rent
You have already entered real estate. You are also getting passive rent.
But from an investment viewpoint, adding more property may reduce liquidity. Real estate is not a liquid asset. Selling quickly in emergencies is tough.
Also, real estate has low post-tax rental yield (2–3%). Maintenance and property taxes further reduce net returns.
Hence, avoid over-allocation here. Prioritise financial investments instead.
Should You Buy a Second Flat in Andheri?
You mentioned the desire for a second flat nearby. But fear taking a loan. That’s a valid concern.
Let’s assess how much home loan you can get.
Your CIBIL score is above 750 – this is very good
Your income is approx Rs. 1.1 lakhs per month
You have no existing EMI burden
As per banks, 50%–60% of monthly income can go toward EMI. That means:
You are eligible for a home loan with EMI up to Rs. 55,000–65,000
At 8.5% interest and 15–20 year term, loan amount can be between Rs. 50–60 lakhs
But eligibility is not the same as affordability. You must ask:
Can you comfortably pay EMI for 15 years without compromising other goals?
Will this flat give any rent or tax benefit?
Will your job and distribution income stay consistent?
If your answer is no or doubtful, avoid the loan. Liquidity and freedom are more important than property.
If You Still Want the Flat – Consider These Options
Opt for a smaller flat or cheaper location to reduce loan size
Use part of your FD and mutual fund to pay higher down payment
Take a joint loan with co-owner if eligible – increases loan eligibility
Don’t sell your MF corpus entirely – keep your compounding alive
Also, calculate how much EMI you can pay comfortably. Not maximum. Choose safety, not stress.
Your Tax Planning Approach
Interest from FD is taxable at slab rate. It increases your tax burden.
Rental income also adds to your taxable income.
You may already be crossing Rs. 10 lakh annual income. So you must consider HUF, Section 80C, 80D, and NPS wisely.
Mutual fund redemptions will now follow new rules:
Equity mutual funds – LTCG above Rs. 1.25 lakhs taxed at 12.5%
STCG taxed at 20%
Debt funds – taxed as per income slab (STCG and LTCG same)
Hence, keep your investment period and tax impact in mind before redeeming.
Suggestions for Next Financial Moves
Here is a 360-degree action plan for you:
1. Create a financial goals map
Retirement corpus target
Child education or wedding
Travel or lifestyle upgrades
Emergency buffer
2. Keep an emergency fund
At least 6 months of expenses in liquid funds or sweep FDs
Don’t use this for investing or real estate
3. Review your mutual fund portfolio
Check if funds are performing well vs category
Remove underperformers
Align risk profile and asset allocation
4. Consider shifting excess FD
Gradually move surplus FD to hybrid or equity mutual funds
Use STP to reduce timing risk
5. Consolidate equity holdings
Exit weak or non-core stocks
Keep direct equity under 10% of total assets
6. Protect your family better
Review term cover after 3 years or major life changes
Ensure personal mediclaim is renewed on time
7. Avoid multiple property purchases
It reduces liquidity
It increases maintenance and tax burdens
Keep one primary house and one income property at most
8. Build retirement corpus actively
Use mutual funds with SIPs or lump sum
Use compounding for next 10–15 years
Don’t delay for market timing
9. Track your personal balance sheet yearly
Note all asset values, income, and liabilities
Track net worth growth annually
Helps in better decisions and peace of mind
Finally
You are already on a solid path. Your assets are strong. Income is diversified. You are debt-free and disciplined.
You are building both active and passive income sources. That shows vision and maturity.
Buying a second flat may feel emotionally satisfying. But financially, it reduces flexibility. Stay cautious.
Keep growing your mutual fund investments. Reduce overexposure to real estate. Balance liquidity, returns, and tax.
With this mix, your long-term wealth will grow with less stress.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment