Hello I completed my Masters in Chemistry in 2022 after that I have done 2 months training from Pharma training center . I also appeared in NET and Gate examination but didn't qualified. I don't want to do teaching and as a fresher it is very difficult to join any company . Now I'm confused which path to choose and work on. Could you please suggest me some way?

Ans: You have made an effort to invest across different asset classes. Your current portfolio provides a strong foundation for future planning. However, fine-tuning is necessary to ensure optimal growth, safety, and fulfilment of long-term goals.

Analysis of Your Existing Investments
Fixed Deposits (FD)
Rs 25 lakh in FD provides liquidity and safety.

FD returns may not beat inflation in the long run.

Consider using part of this for better growth-oriented investments.

ELSS Mutual Funds
Investing Rs 12,500 monthly in ELSS is good for tax-saving and long-term wealth creation.

ELSS offers inflation-beating growth through equity exposure.

Ensure the funds you hold are actively managed for better performance.

Direct Shares
Rs 17 lakh in shares shows you have a risk appetite.

Review your stock portfolio regularly for performance and diversification.

Avoid over-reliance on individual stocks.

Public Provident Fund (PPF)
Rs 5 lakh in PPF provides safety and tax-free returns.

Continue investing systematically for long-term goals like retirement.

Employee Provident Fund (EPF)
Rs 8.5 lakh in EPF is a stable retirement-focused asset.

Your EPF contributions should align with your retirement goals.

LIC Policy
Rs 5 lakh sum assured in LIC provides limited life cover.

Check the returns on this policy, as they are often lower than other options.

Guaranteed Income Plans
ICICI and HDFC Guaranteed Income Plans offer assured returns with insurance.

These plans typically have low returns compared to market-linked investments.

Consider whether the guaranteed payouts align with your goals.

Planning for Your Child’s Education and Marriage
Goal Estimation
Higher education and marriage costs are likely to increase with inflation.

Estimate the amount needed in today’s terms and adjust for future inflation.

Investment Options
Create a dedicated fund for your child’s education and marriage.

Use equity-oriented mutual funds for long-term growth.

Start a systematic investment plan (SIP) for this goal.

Insurance for Protection
Ensure adequate term insurance to secure your child’s future.

The sum assured should cover future expenses and liabilities.

Retirement Planning
Evaluate Current Retirement Corpus
EPF, PPF, and other savings are good starting points for retirement.

Assess if these investments are enough to meet post-retirement expenses.

Investment Strategy
Increase exposure to equity for inflation-adjusted growth.

Diversify into balanced mutual funds for stability and growth.

Health Coverage
Ensure comprehensive health insurance to cover rising medical costs.

This avoids dipping into retirement savings for emergencies.

Recommendations for Portfolio Improvement
Re-evaluating LIC and Guaranteed Income Plans
Returns on these products are often lower than market-linked instruments.

Consider surrendering or stopping new premiums, if feasible, and reinvesting.

Enhancing Equity Investments
Increase ELSS or other actively managed mutual fund investments.

Actively managed funds outperform passive investments like index funds.

Direct Stocks vs Mutual Funds
Reduce direct exposure to individual stocks if you lack time for monitoring.

Actively managed mutual funds offer diversification and professional management.

Tax Efficiency
Equity mutual funds provide tax efficiency compared to FDs and other fixed-income plans.

Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%.

Emergency Fund
Retain part of the FD as an emergency fund for unforeseen situations.

A buffer of 6-12 months of expenses is ideal.

Regular Monitoring
Review your portfolio performance every six months.

Adjust investments based on life stages and financial goals.

Final Insights
Your current investments reflect a strong foundation, but adjustments are essential for better growth. Focus on goal-specific investments, diversify effectively, and secure adequate insurance coverage. Ensure your child’s future and retirement goals are well-aligned with your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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