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Mayank

Mayank Chandel  |2487 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Sep 14, 2023

Mayank Chandel has over 18 years of experience coaching and training students for various exams like IIT-JEE, NEET-UG, SAT, CLAT, CA and CS.
Besides coaching students for entrance exams, he also guides Class 10 and 12 students about career options in engineering, medicine and the vocational sciences.
His interest in coaching students led him to launch the firm, CareerStreets.
Chandel holds an engineering degree in electronics from Nagpur University.... more
Asked by Anonymous - Sep 12, 2023Hindi
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Career

My Daughter finished her B-tech in Mechanical Engineering and now she wants to pursue MS in Data Science. She has got admit card from UNT in US. Sir i would like to know about the future prospects.

Ans: Sir,
there is very good for MS in Data Science. University of North Texas amongst Tier-1.
Career

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Ramalingam

Ramalingam Kalirajan  |9151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
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

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Ramalingam

Ramalingam Kalirajan  |9151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 02, 2025Hindi
Money
Dear Sir, I want financial advise regarding retirement corpus. My earning is 2.5Lac per month and since I am 41 year old I can work next 10 years from now. I have been doing SIP of 50K for last few years and I have 30Lac in MF and 15Lac of Stocks. I have own house so my family monthly expenses currently are 50K/month. I have couple of real estate investment worth of 45Lac. Major future expense of future would be my kids education. SSY has been opted for daughter and 1.5lac yearly contribution is going there till 2030. I have covered with 20lac health insurance and 1cr life insurance. With PF, gratuity and NPS i would have around 50Lac now which should be increasing in my next 10 year working. What should be done in next 10 year to plan my retirement for real, if i expect life expectancy of 80 years?
Ans: Understanding Your Retirement Vision

You are 41 years old now.

Your monthly income is Rs 2.5 lakhs.

You wish to retire at age 51.

Your current expenses are Rs 50,000 monthly.

You already have some good investments.

You have no home loan burden.

Your daughter's SSY is being funded well.

You have insurance coverage in place.

Your goal is a peaceful retired life till 80.

This means planning for 30 years post-retirement.

Let’s now go step-by-step and plan for your full retirement.

Emergency and Risk Management

Your health cover is Rs 20 lakhs.

It should include your spouse too.

If not, buy a floater policy urgently.

Medical inflation is very high in India.

A cover of Rs 30 lakhs is better.

Don’t depend on employer health insurance.

Life insurance is for income protection.

You have Rs 1 crore term cover.

That’s enough for now, if dependents are few.

Don’t buy investment-linked insurance plans.

They give poor returns and high charges.

Current Investment Snapshot

SIP of Rs 50,000/month is very good.

You already have Rs 30 lakhs in mutual funds.

You also have Rs 15 lakhs in stocks.

Plus PF, NPS and gratuity of Rs 50 lakhs.

Real estate worth Rs 45 lakhs is there.

Expenses are low. So you have surplus monthly.

You are already ahead of most investors your age.
But to retire in 10 years, extra discipline is required.

Mutual Funds: Stay Committed with Guidance

Continue SIP of Rs 50,000 monthly.

Increase it by 10% every year.

Choose diversified equity funds for long term.

Use a Certified Financial Planner for selection.

Invest in regular plans, not direct funds.

Direct funds give no advice or rebalancing.

Regular funds help with goal tracking.

Invest through an MFD with CFP qualification.

Avoid index funds completely.
They just copy the market.
They don’t beat inflation by wide margins.
Actively managed funds select better stocks.
They outperform in uncertain or flat markets.

Stocks: Review and Filter

You have Rs 15 lakhs in stocks.

Ensure these are good quality businesses.

Sell any penny stocks or non-performing ones.

Shift that amount to mutual funds if needed.

Equity mutual funds manage risk better.

Fund managers rotate sectors smartly.

Stocks are for professionals. Stay cautious.

Retirement Corpus Estimation and Structure

You need a solid corpus for 30 years.

Your expenses today are Rs 50,000/month.

Adjusted for inflation, it doubles in 15 years.

So you need at least Rs 4 to 5 crores corpus.

That is the minimum. More is always better.

Let’s break the sources for that:

Sources Available Now

Mutual Funds: Rs 30 lakhs

Stocks: Rs 15 lakhs

PF + NPS + Gratuity: Rs 50 lakhs

SIP (Rs 50k/month for 10 years): Will grow strong

Real estate: Consider only for future selling, not returns

If SIPs continue properly and stocks perform reasonably,
you can reach around Rs 3 to 3.5 crores in 10 years.
PF and NPS might cross Rs 1 crore easily.
Total: Around Rs 4.5 crore to Rs 5 crore possible.
So your target is well within reach if no major disruption.

Action Plan for Next 10 Years

1. Increase SIP by 10% Yearly

From Rs 50k to Rs 80k in a few years.

Use salary hikes to step up SIPs.

2. Create Retirement Buckets

Use 3 buckets model after age 51.

Bucket 1: 5 years expenses in safe assets.

Bucket 2: 5 to 10 years in hybrid funds.

Bucket 3: Long term in equity mutual funds.

Withdraw from Bucket 1, refill from 2.

3. Start a PPF if not started

Use for safe allocation and tax savings.

Long-term wealth, tax-free maturity.

4. Don’t Stop Investing in NPS

It gives tax benefits.

Partial annuity is compulsory, but ignore that for now.

Focus on wealth-building side of NPS.

5. Track SIP Portfolio Yearly

Sit with a CFP every year.

Rebalance if one fund underperforms.

Shift to hybrid funds as retirement nears.

Avoid emotional decisions during market crash.

6. No More Real Estate Investment

Don’t add more property.

Returns are slow and exit is hard.

No rental income is reliable post-retirement.

Focus on liquid assets.

Children’s Education: Clear Planning

SSY is already in place for daughter.

Keep investing Rs 1.5 lakh every year.

Use mutual funds for higher education goal.

Create a separate SIP for this.

Don’t mix education and retirement corpus.

Tax Planning: Keep It Smart

Continue using 80C options with SSY and PPF.

Use NPS for 80CCD(1B) for extra Rs 50,000 deduction.

Don’t invest just for tax savings.

Aim for post-tax returns.

Mutual fund gains are taxed now like this:

LTCG on equity funds above Rs 1.25 lakh: 12.5%.

STCG on equity funds: 20%.

Debt fund gains taxed as per income slab.

So plan withdrawals wisely in retirement years.

After Retirement: Income Planning

Use mutual fund SWP option.

Start from hybrid or conservative funds.

Keep equity funds untouched for longer.

Withdraw only what you need.

Keep inflation in mind always.

Rebalance buckets every 3 years.

Avoid annuity products.
Returns are very low and taxable.
They lock your money unnecessarily.

Checklist for Yearly Review

Review SIPs and top-up amounts.

Monitor stock portfolio. Exit weak stocks.

Ensure health and life insurance is active.

Meet Certified Financial Planner every year.

Don’t experiment with new products.

Stick to your retirement plan always.

Finally

You are on track to retire peacefully.

Just 10 more years of smart investing.

You already have a strong base now.

SIPs will grow into big wealth slowly.

Don’t stop them at any cost.

Keep insurance updated every year.

Use guidance from CFP for every step.

Don’t try to do everything alone.

Review, rebalance, and stay patient.

Don’t add any more real estate assets.

Avoid direct stock risk without advisor.

Say no to annuities and endowment plans.

Stick with mutual funds and NPS.

By 51, you’ll be financially free.

From 52 to 80, you can live with pride.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |9151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 01, 2025Hindi
Money
I have 30 lakhs in GPF Account. Interest rate on this amount is 7 % pa. I want to withdraw it and invest it to get more returns. At the same I want safety also. I have already invested 10 L in Mutual fund through SIP and one time investment in different funds. Return is about 15%. Kindly advice me the right way of investment in different MF, FD and Share
Ans: Reviewing Your Current Investment Framework
You have Rs?30 lakh in GPF earning 7% interest.

You already invested Rs?10 lakh via SIPs and lump?sum in mutual funds.

That yields an average return of around 15% pa.

That is a good start and shows strong interest in investing.

Now you wish to redeploy GPF funds for higher returns and safety.

Clarifying Your Investment Goals
What are your goals for these funds?

Retirement, education, travel, or emergency reserve?

Are you planning medium (3–7 years) or long term (10+ years)?

Goal clarity helps in choosing suitable fund categories.

Evaluating Risk?Return Trade?Off
GPF gives safety but limited return at 7%.

Equity mutual funds give higher returns with volatility.

You are already in equity via SIP.

Your current 15% return means you tolerate equity fluctuations well.

Moving GPF to similar equity mix may improve returns but increase risk.

Adding debt or hybrid funds can enhance safety.

Asset Allocation Strategy for Rs?30 Lakh
We suggest a diversified allocation combining equity, hybrid, debt, and alternate assets:

1. Equity Funds (~50%) – Rs?15 lakh

Invest in actively managed large?cap and flexi?cap funds.

Add mid?cap or small?cap exposure gradually for higher growth.

Keep small?cap less than 20% of equity to control volatility.

2. Hybrid Funds (~20%) – Rs?6 lakh

Choose aggressive hybrid and multi?asset allocation schemes.

These combine equity and debt to smooth returns.

3. Debt Funds (~20%) – Rs?6 lakh

Use short?term or low?duration debt funds for safety and liquidity.

Acts as a buffer during market dips.

4. Liquid or Ultra?Short Debt (~5%) – Rs?1.5 lakh

To maintain liquidity for emergencies or better investment windows.

5. Gold-based Asset (~5%) – Rs?1.5 lakh

You already hold SGB via GPF funds.

Maintain total gold exposure at 5–7% of the portfolio.

This mix balances growth, volatility, and safety.

Why This Allocation Makes Sense
Equity funds aim to exceed 12–15% returns but with downturns.

Hybrid funds offer part?equity growth and part?debt stability.

Debt funds protect principal and provide regular income.

Liquid funds ensure quick access without returns compression.

Gold protects against inflation and acts as a safe haven.

Breakdown of Mutual Fund Categories
A. Large?Cap and Flexi?Cap Funds

Invest in top companies with stability and good growth potential.

Flexi?cap adds flexibility across market caps.

Actively managed funds can adjust during market drops.

B. Mid?Cap and Small?Cap Funds

Higher return potential but higher volatility.

Keep your small?cap exposure balanced.

Add only if your risk appetite allows and horizon is long.

C. Hybrid and Multi?Asset Funds

Equity cushion with debt downside protection automatically built?in.

Suitable between aggressive equity and conservative debt.

Simpler than managing multiple asset classes individually.

D. Short?Term Debt Funds

Ideal for holding periods up to 2–3 years.

Provides better returns than FD and less interest rate risk.

Taxed as per your income slab for short?term holdings.

E. Liquid / Ultra?Short Funds

Use for fund parking, upcoming payments, or emergency use.

Ideal for maintaining flexibility.

Why Actively Managed Funds Over Index Funds
Index funds simply mimic index costlessly.

They have no active decision?making in crashes.

They cannot exit sectors before a fall.

Actively managed funds have discretion to reduce loss.

Fund managers adjust exposure, select opportunities.

This improves resilience and potential returns.

Dangers of Direct Plans Without Advice
Direct plans save on expenses but lack guidance.

You bear all research, monitoring, and switching decisions.

Mistakes like poor fund choice or timing can reduce returns.

CFP-backed MFDs help with review, allocation, rebalancing.

They also assist with taxation, documentation, and discipline.

CFPlan for Your Withdrawal and Redeployment
Step 1: Withdraw from GPF in Tranches

Withdraw Rs?10 lakh every quarter over 9–12 months.

This rebalances interest loss against better return potential.

Helps in averaging entry levels into markets.

Step 2: Deploy Funds to Allocated Baskets

Invest the first tranche as per target allocation.

Stagger future tranches to hedge against market volatility.

Step 3: Continue and Track Your SIP and Lumps

Continue existing Rs?10 lakh investment.

Do not disrupt current funds.

Add the redeployed GPF amounts to complement them.

Step 4: Monitor Quarterly and Rebalance Annually

Equity may grow faster; adjust to keep allocation in check.

Hybrid funds cushion swings automatically.

Rebalance using new inflows or switches.

Incorporating Fixed Deposits and Safety
Fixed deposits can be used short?term when rates are high.

But FDs lack flexibility and tax efficiency.

Debt and high?quality hybrid funds are better.

If you still want FDs, keep max allocation at 10%.

Choose banks with high safety ratings and short maturities.

Tax Implications of This Strategy
Equity LTCG (>1 year): Gains above Rs?1.25 lakh taxed at 12.5%.

STCG (

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Ramalingam

Ramalingam Kalirajan  |9151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Money
DOB entered in my LIC Jeevan Shri policy is 02/01/1962 whereas my actual DOB is 02/ 01/1960. All premiums are paid and policy is to mature in January 2027. Will there be any issue at the time of maturity? If yes, what should I do?
Ans: Identifying the Core Issue
Your policy photo shows DOB as 02/01/1962.

Your actual DOB is 02/01/1960.

The policy matures in January 2027.

This mismatch may cause confusion at maturity.

LIC may question your age at entry or maturity.

They may delay or adjust payout.

Potential Problems at Maturity
LIC assesses maturity based on policy date and age.

Incorrect DOB may trigger request for proof.

Verification delays are possible.

It may affect payable amount if age criteria differ.

Claim could be deferred pending correction.

A dispute could arise if underwriting terms vary by age.

Why Timely Correction Matters
Corrections during the policy term are simpler.

At maturity, LIC may demand proof and correction.

That may risk your payout timeline and convenience.

Avoiding delays preserves your financial planning.

Legal and Underwriting Perspective
LIC follows IRDAI norms and standard age documentation.

Update must use original proof like birth certificate, school records, or passport.

Age proof must be valid and consistent with actual date.

What You Should Do Now
1. Immediately Inform LIC

Visit the LIC branch office where policy was sold.

Write an application stating correct DOB.

Attach self-attested original documents:

Birth certificate or school leaving certificate.

Passport, PAN card, or Aadhaar.

2. Submit Application with Proofs

Clearly mention policy number and details.

Ask LIC to correct the DOB in records.

LIC will process under “endorsement and correction” procedure.

3. Follow Up Periodically

Keep a copy of acknowledgment receipt.

Visit branch after 15–30 days to check update status.

Ask for corrected policy document or endorsement certificate.

4. Keep Updated Documents

Once corrected, request updated policy

Ensure your maturity benefit is based on correct age data.

5. Minimise Risk of Dispute

Holding correct documentation reduces maturity time friction.

Avoid last-minute discrepancies causing unnecessary stress.

What Happens if You Don’t Correct Now
LIC may seek age proof at maturity.

Processing may get delayed by weeks/months.

Official payout may be reduced if age mismatch affects sums assured.

You may need to undergo extra paperwork or due diligence at maturity.

Post?Correction Actions
Ensure the corrected policy is reflected in your name.

Keep endorsement letter securely.

Include corrected document in financial plan.

Avoid future insurance or investment mismatches.

Integrating this into Your 360° Financial Plan
Insurance & Policy Governance

Age errors are common but fixable.

Timely correction reduces frustration.

Clean records align better with other investments.

Retirement & Liquidity Planning

January 2027 maturity may fund retirement or goals.

Ensure payout timing works with your plan.

Tax Considerations

Money received will be assessed as per maturity rules.

LIC doesn’t deduct tax at maturity.

But correct documentation avoids classification issues.

Final Insights
Mismatched DOB is fixable without surrender.

Fix it now by submitting application with proof.

Track status to ensure benefits at maturity are unhindered.

Proper documentation aids smooth maturity payout.

You can align this corrected policy with your overall financial plan.

You are proactive in seeking clarity. This action ensures secure maturity benefit and trust in your planning.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Ramalingam

Ramalingam Kalirajan  |9151 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 16, 2025Hindi
Money
I'm 30 years old and have a cloud kitchen where I earn around 40000 a month approximately or sometimes more than this. I'm married and my wife is a working women earns 20k a month , I do investment in sliver by purchasing coins or have gold but need to ask where I can invest more for my kids education and for my retirement I'm capable to invest 15k every month and ready to invest for long term bases.
Ans: You are 30 years old.

You run a cloud kitchen.

Your income is around Rs 40,000 a month.

Your wife earns Rs 20,000 a month.

You invest in silver coins and gold.

You want to invest for kids’ education and your retirement.

You are ready to invest Rs 15,000 every month.

You are focused on long-term investment.

You have taken the right step already. Thinking early about your future goals is wise. Now let's build a full financial plan with your situation in mind.

Start with Emergency Fund

Emergency fund is the first step.

It helps when there is no income.

You should have 6 months’ expenses saved.

Try to keep Rs 2.5 lakhs to Rs 3 lakhs.

Use liquid mutual funds or sweep-in FDs.

This money should not be in gold or silver.

Keep it easy to access, but not in savings.

Secure Health and Life

Health insurance is a must.

Take family floater for yourself and your wife.

Minimum cover of Rs 5 lakhs is advised.

Don’t depend only on employer’s insurance.

Medical expenses can spoil savings if ignored.

Life insurance is needed only if you have dependents.

Pure term insurance is the best.

Avoid money-back or endowment plans.

Premiums are low and coverage is high.

Cover should be 15 to 20 times your yearly income.

Don’t mix insurance and investment.

Silver and Gold: Good but Not Sufficient

You invest in silver and gold now.

These protect against inflation.

But they don’t give regular returns.

They don’t help in long-term wealth growth.

Their prices are also very volatile.

Don’t invest more than 10% in them.

Your focus should be long-term growth now.

Invest in Mutual Funds through Certified Financial Planner

Mutual funds are ideal for long-term goals.

They give inflation-beating returns.

For Rs 15,000 monthly, SIP is the best way.

Systematic Investment Plan gives discipline.

Start SIP in 3 or 4 good funds.

Pick different categories – equity, hybrid.

Mix of large, flexi-cap, and balanced funds.

Choose regular plans through a Certified Financial Planner.

Avoid direct funds, they don’t give guidance.

MFDs with CFP certification can help with reviews.

They help you track and rebalance yearly.

Why Not Direct Funds

Direct funds don’t give personalised advice.

You need to track and switch on your own.

Most people don’t review their investments.

Regular funds give value with expert support.

A Certified Financial Planner will create a proper strategy.

You will stay more disciplined with guidance.

Advice helps avoid panic during market falls.

Avoid Index Funds and ETFs

Index funds only follow the market.

They don’t beat the market.

Returns are average, not high.

They don’t have fund manager’s expertise.

Actively managed funds select better companies.

You need high growth, not average returns.

Index funds are passive, with no risk strategy.

For long-term goals like kids’ education or retirement, avoid them.

Investment Allocation – Based on Your Goals

For Kids’ Education:

Start SIP of Rs 7,000 monthly.

Invest in child-focused equity mutual funds.

Add hybrid funds for safety after 5 years.

Review every year with your planner.

Add lump sum whenever income is high.

For Retirement:

Start SIP of Rs 8,000 monthly.

Choose 2–3 high growth mutual funds.

Use flexi-cap and large & mid-cap funds.

Goal is to build wealth over 25–30 years.

Don’t stop SIP during market falls.

Add a PPF Account

PPF is good for stable long-term returns.

Invest Rs 1,000 to Rs 2,000 monthly.

Safe, tax-free, and government-backed.

Use it as a fallback retirement backup.

Don’t rely only on this for growth.

Use it with mutual funds, not alone.

Track and Rebalance

Once a year, review your investments.

Shift from risky to safe as goals near.

Use Certified Financial Planner to guide.

Rebalancing helps avoid big losses.

Don't do it emotionally. Do it smartly.

Avoid Investment Cum Insurance Products

Don’t buy ULIP or endowment plans.

They give poor returns.

Charges are high. Lock-in is long.

They look safe but give low growth.

You lose flexibility and transparency.

Only pure term insurance is needed.

Discipline and Long-Term Thinking

Don’t stop SIPs during bad months.

Market may fall but it recovers.

Stick to the plan for 10 to 25 years.

Keep increasing SIPs when income rises.

Even Rs 1,000 increase helps long term.

Celebrate milestones with discipline, not breaks.

Avoid Loans for Goals

Avoid loans for kids’ education.

Build funds early. Avoid education loan stress.

For retirement, don’t depend on children.

Build your own wealth. Be self-reliant.

Loans eat returns and peace of mind.

Track Expenses and Budget

Save before you spend.

Don’t wait till month-end to invest.

Budget your expenses weekly.

Keep lifestyle simple till goals are strong.

Avoid unnecessary credit card expenses.

Other Smart Habits to Follow

Write down your goals clearly.

Write target year and amount.

Share goal clarity with your wife too.

Financial teamwork helps a lot.

Talk about money once a month at home.

Teach kids about savings from early age.

Finally

You are on the right track already.

Thinking about future at 30 is wise.

Silver and gold alone are not enough.

Mutual funds will build real wealth.

Take help from a Certified Financial Planner.

Build a solid emergency fund.

Get health and term cover first.

Start SIPs now for kids’ education and retirement.

Don’t stop SIPs when income is low.

Use PPF for safe support, not as main plan.

Stay consistent for 10 to 25 years.

Track, rebalance, and review yearly.

Avoid index funds and direct funds.

Avoid real estate or investment insurance.

Focus on goals. Avoid shortcuts.

Keep increasing investment with income.

Future will be safe, stress-free and independent.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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