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Nayagam P

Nayagam P P  |8367 Answers  |Ask -

Career Counsellor - Answered on Jun 20, 2025

Nayagam is a certified career counsellor and the founder of EduJob360.
He started his career as an HR professional and has over 10 years of experience in tutoring and mentoring students from Classes 8 to 12, helping them choose the right stream, course and college/university.
He also counsels students on how to prepare for entrance exams for getting admission into reputed universities /colleges for their graduate/postgraduate courses.
He has guided both fresh graduates and experienced professionals on how to write a resume, how to prepare for job interviews and how to negotiate their salary when joining a new job.
Nayagam has published an eBook, Professional Resume Writing Without Googling.
He has a postgraduate degree in human resources from Bhartiya Vidya Bhavan, Delhi, a postgraduate diploma in labour law from Madras University, a postgraduate diploma in school counselling from Symbiosis, Pune, and a certification in child psychology from Counsel India.
He has also completed his master’s degree in career counselling from ICCC-Mindler and Counsel, India.
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Kumar Question by Kumar on Jun 17, 2025Hindi
Career

Hi, my son interested in mechanical engineering, looking for MIT Jaipur and CBIT Hyderabad suggest which one is good.

Ans: Kumar Sir, MIT Jaipur’s Mechanical Engineering program is highly rated, with a 98% engineering placement rate in 2023, an average package of ?9 LPA, and top recruiters like Amazon, Bosch, Schneider Electric, and Mahindra & Mahindra. The department boasts modern labs, strong academic rigor, and consistent industry engagement, with students placed in leading automotive and manufacturing firms. CBIT Hyderabad also offers strong placements, with a 71% placement rate, a median salary of ?7.6 LPA for UG programs, and recruiters such as Microsoft, J.P. Morgan, Godrej, and Hyundai. CBIT’s faculty is experienced, infrastructure is robust, and the curriculum is industry-oriented, but placement rates and packages are generally lower than MIT Jaipur’s recent outcomes. Both colleges have active student clubs, good labs, and strong alumni networks, but MIT Jaipur’s placement statistics and recruiter diversity are notably higher.

Recommendation: MIT Jaipur is the better choice for Mechanical Engineering due to its higher placement rate, stronger industry connections, and consistently better placement outcomes compared to CBIT Hyderabad. All the BEST for the Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 09, 2025

Money
I am 35 years old currently earning 40000/ month. I am having housing loan of around 3 lakh, Gold loan of around 1.2 Lakh need some financial assist for retirement,childs education & marriage who is 12 years old now.
Ans: You are 35 years old. Your monthly income is Rs. 40,000. You are repaying a housing loan of Rs. 3 lakh and a gold loan of Rs. 1.2 lakh. You also want to plan for your retirement, your child’s education, and marriage. Your child is currently 12 years old.

This shows that you are already thinking ahead. That is a great mindset. Many people don’t plan until it is late. You still have time on your side. You also have the willingness to improve. Let us now build a full financial roadmap from all angles.

First Look at Your Financial Position
Before making any changes, let us assess the full picture.

You earn Rs. 40,000 monthly

You have total loan of Rs. 4.2 lakh

Your child will need college funds in 5–6 years

Marriage fund may be required in 10–12 years

Retirement is 25 years away

With this background, we need to balance current debt, future goals, and wealth creation. Let us proceed step by step.

Clear All Loans in a Planned Way
Paying off loans is the first step to improve cash flow.

Focus on clearing the gold loan first

Gold loan interest is high compared to home loan

Try to close gold loan in next 6–8 months

After gold loan, increase EMI for housing loan

Aim to finish housing loan in 2–3 years

Avoid new loans unless very urgent

Debt limits your investment ability. So reducing debt early helps you save more later.

Emergency Fund – Your First Financial Safety
You must create an emergency reserve. This is very important.

Keep 4–6 months of expenses ready

Save at least Rs. 1 lakh in a liquid fund or savings-plus plan

Do not touch this for regular spending

This helps during job loss, medical events, or repair expenses

Without this, you may fall into debt again during any sudden problem.

Health and Life Insurance Must Be in Place
Protection must come before growth. Insurance is the base of planning.

Take a term life cover if you haven’t taken yet

The cover must be at least 10–15 times your income

Buy a simple term plan only. Avoid any policy with investment

Also, take health insurance for self and family

Minimum cover of Rs. 5 lakhs is needed

Medical costs are rising fast, so this is essential

Without proper insurance, your savings can vanish after one medical emergency.

Write Down Your Key Financial Goals
Let us now focus on your future needs.

Retirement – needed after 25 years

Child’s education – needed in 6 years

Child’s marriage – needed in 10–12 years

Write down expected years and estimated amount. This gives direction to your savings.

Goal-Wise Investment Plan
Each goal must be planned differently. Let’s see them one by one.

1. Child’s Education – 6-Year Goal

Use a mix of hybrid and debt mutual funds

Avoid index funds. They don’t adjust to market risks

Go with regular mutual funds through Certified Financial Planner

Invest monthly for better compounding

Review every year for progress

2. Child’s Marriage – 10–12-Year Goal

Use actively managed equity mutual funds

Invest monthly using SIPs

Avoid gold and real estate for this goal

Stay with mutual funds for better flexibility and tax benefit

Avoid direct stocks unless you have time and knowledge

3. Retirement – 25-Year Goal

Make this your top priority along with child needs

Use SIPs in equity mutual funds with proper mix

Choose regular mutual funds, not direct ones

A CFP will help plan the right funds and amounts

Invest monthly and increase yearly as income grows

Goals need regular investment. They should not depend on one-time lump sum only.

Increase Your Monthly Savings Over Time
Right now, income is Rs. 40,000. Savings will be limited. But still:

Start investing at least Rs. 5,000 per month

As loans reduce, increase your SIPs

Target Rs. 10,000 per month investment in 1 year

When income grows, increase savings before spending

Don’t wait for surplus. Make savings your first expense

Small investments done regularly grow big in the long term.

How Mutual Funds Help You Grow
Mutual funds should be your main investment tool.

They offer growth, tax benefit, and flexibility

Always choose regular plans through Certified Financial Planner

Direct funds may look cheaper, but offer no review or advice

Direct funds may lead to wrong choices or emotional exits

Regular funds give support, monitoring, and behavioural help

Avoid index funds. They only copy the market and miss active control

Active funds aim to beat market returns, not just follow

Use a goal-wise SIP approach. Rebalance yearly with help of a CFP.

Don’t Depend on Gold or Real Estate
Though you have a gold loan, gold should not be a core investment.

Gold does not give steady income

It does not beat equity in long term

Its value is emotional, not always financial

Real estate also has low liquidity and high cost

Stick to mutual funds, short-term debt options, and bank deposits for safety and growth.

Budgeting and Expense Control
Savings come from good spending habits. Keep these points in mind:

Track your spending for 3 months

Find areas to cut without reducing quality of life

Avoid EMI-based purchases and online credit traps

Avoid frequent mobile upgrades, gadgets, eating out

Don’t mix needs and wants

Every 500 saved monthly can grow into lakhs later

Simple habits today help you achieve major dreams tomorrow.

Tax Planning Using Mutual Funds
Mutual funds can help with tax savings also.

Use equity-linked savings funds under regular plans

These save tax under section 80C

Avoid traditional tax-saving policies or ULIPs

They give low return and lock your money unnecessarily

MF tax is efficient.

LTCG above Rs. 1.25 lakh is taxed at 12.5%

STCG is taxed at 20%

Debt fund gains are taxed as per income slab

Use these tax benefits to invest more, not just to save tax.

Keep Reviewing and Improving Yearly
Planning once is not enough. Follow up regularly.

Every year, check your loan, saving, and goal progress

Review SIPs and adjust fund choices if needed

Add more insurance if responsibilities increase

Meet a Certified Financial Planner once a year

Life changes. Your plan must change too

Regular check-up keeps your financial health strong.

Don’t Do These Common Mistakes
Avoiding mistakes is more important than chasing high returns.

Don’t take personal loans for vacations or gifts

Don’t stop SIPs during market fall

Don’t listen to stock tips or WhatsApp forwards

Don’t invest in policies that mix insurance and investment

Don’t withdraw from mutual funds for short-term needs

Don’t ignore inflation in goal planning

Stay focused. Avoid shortcuts. That’s how wealth builds slowly.

Finally
You have already taken the first step by asking this question. You have a moderate income. But your responsibilities are rising. With proper discipline and planning, you can achieve all your goals.

Just follow these steps:

Repay loans as early as possible

Create emergency and insurance protection

Define all your goals with timeline

Start SIPs even with small amount

Stick to mutual funds with expert guidance

Avoid direct stocks, real estate, and policies

Review yearly and increase SIPs with income

Every month saved is a step closer to your dreams. Stay consistent. Stay patient.

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

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Nayagam P

Nayagam P P  |8367 Answers  |Ask -

Career Counsellor - Answered on Jul 09, 2025

Nayagam P

Nayagam P P  |8367 Answers  |Ask -

Career Counsellor - Answered on Jul 09, 2025

Career
Hello Sir, My daughter is in Class 11 , and preparing for JEE. Kindly advice how to score more than 99.5 %tile in JEE mains (General Category) to get through Top NITs and to qualify for advanced. Kindly suggest the Roadmap. She is into inhouse integrated school coaching.So coaching classes happen in school timing and in school premises(gets over by 3 PM). Kinldy advise books and time management.
Ans: Susmita Madam, Before answering your question, please note this IMPORTANT suggestion: One of the most important yet often overlooked strategies in JEE preparation is the habit of regular analysis and revision after every test, which many students fail to follow consistently—leading to lower scores in both the short and long term. JEE coaching institutes frequently conduct a variety of tests, including topic-wise, unit-wise, and full syllabus assessments. After each test, it's crucial for your daughter to carefully review the questions she answered incorrectly or took too much time to solve, as this will help her identify knowledge gaps and improve time management—an essential skill in competitive exams like JEE. Maintaining a separate notebook for each subject (Physics, Chemistry, and Maths) to record such questions, along with their quicker solutions or shortcuts, can serve as a highly effective revision tool. In addition, since students may understand many concepts but tend to forget them over time, frequent and structured revision is key. Encourage her to prepare short summary notes or formula sheets for each chapter, dedicate at least 20–30 minutes every night to revisiting the day’s lessons, and conduct weekly revisions to reinforce learning. These practices will gradually strengthen her conceptual clarity and problem-solving speed. While she may not see immediate results, the long-term benefits of this disciplined approach will become evident over a few months through improved confidence and performance in mock tests and actual exams. Scoring above the 99.5 percentile in JEE Main—equating to roughly 250–262 marks out of 300—requires disciplined planning over the next 19 months. With school from 7:00 AM–3:30 PM and in-house coaching on campus, utilize 4:30 PM–10:30 PM effectively as follows.

Solid Concept Foundation (Class 11 Core Topics)
Prioritize deep understanding of Class 11 topics that underpin JEE Main and boards:

Physics: Kinematics, Rotational Motion, Thermodynamics, Magnetism, Optics

Chemistry: General & Inorganic Chemistry, Chemical Bonding, Redox Reactions, Gaseous State, Basic Organic Chemistry

Mathematics: Complex Numbers, Quadratic Equations, Sequences & Series, Matrices & Determinants, Integral Calculus

Recommended Books

Physics: H.C. Verma Vol I–II; D.C. Pandey series (Mechanics, Electrodynamics, Modern Physics) (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding)

Chemistry: O.P. Tandon (Physical, Inorganic, Organic); P. Bhardwaj/Bahadur for numerical problems; (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding) & NCERT for basics

Mathematics: R.D. Sharma for fundamentals; Cengage (A.M. Foundation series) for practice; Amit Agarwal for calculus drills (Reference & To Attempt Only Difficult/complicated/difficult questions to strengthen the concept understanding)

Previous Years’ Solved Papers: Arihant or MTG or Disha PYQ compilations for all three subjects (Make sure that each question has detailed answers with explanatory notes)

Structured Weekly Schedule -

Monday–Friday (4:30–10:30 PM):
 – 4:30–6:00 PM: School homework & quick board review
 – 6:00–6:15: Break
 – 6:15–8:15: Focused JEE topic (alternate subjects each day)
 – 8:15–8:45: Dinner
 – 8:45–10:00: Practice problems/previous PYQs (Once any Chapter is completed)
 – 10:00–10:30: Revision and short NCERT notes

Saturday–Sunday:
 – Full-length mock test (4 hours)
 – Detailed analysis (2 hours) identifying weak areas
 – Peer discussion or doubt clearing sessions

Time-Management Strategies:

Pomodoro Technique: 45–50 minutes study + 10–15 minutes break to sustain focus.

Prioritize high-weightage topics first; allocate more time to weaker areas.

Maintain daily revision logs and concise formula flashcards for quick recall.

Limit social media; use app-blockers during study blocks.

Ensure 7–8 hours sleep and short physical activity breaks to prevent burnout.

Progress Tracking:

Monthly sectional tests for each subject, simulating exam pattern.

Bi-monthly full syllabus mocks under timed conditions.

Maintain a performance diary: topics mastered, error patterns, revision schedule.

By systematically building concepts, following a balanced timetable, leveraging the right books and mock tests, and refining time-management, she can target and surpass a 99.5 percentile in JEE Main to access top NITs and qualify for JEE Advanced. All The BEST for Your Daughter.

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Ramalingam

Ramalingam Kalirajan  |9557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 09, 2025

Money
Am married and salaried employee and I have Home loan for 25yrs which started recently , after all expenses and deductions am able to save around Rs15 to 20k . I don't have any Emergency fund as of now . Planning for sip , term insurance which I don't have yet as monthly saving for sip and Could please guide me how do I start here with both of these investments .
Ans: You are taking the right step now.
You want to begin SIP and term insurance.
You are also managing a home loan.
Let us guide you with a full 360-degree plan.
It will help you build wealth and protect your family.

Your Current Financial Picture
Let’s understand your key facts first:

You are married and salaried

You recently took a home loan

Loan tenure is 25 years

After expenses and deductions, Rs. 15,000 to Rs. 20,000 savings remain

You have no emergency fund

You don’t have term insurance

You want to start SIP and insurance now

Your steps are correct and timely.
Let us now guide you step-by-step.

Step 1: Build an Emergency Fund First
You have no emergency fund now.
This is very risky.

If any expense comes, you may stop your SIP or miss loan EMI.
This leads to penalty or more loan burden.
So emergency fund is the first and most urgent step.

Save at least Rs. 50,000 to Rs. 1 lakh first

Park in sweep-in FD or liquid mutual fund

Don’t keep in savings account

Don’t use for spending

Build slowly month by month

Use Rs. 5,000 to Rs. 7,000 from savings for this purpose

Complete this target in 6 to 9 months

This fund will protect your loan EMIs and SIP from disruptions.

Step 2: Buy Term Insurance Immediately
You do not have term insurance now.
This is a big risk since you have a loan and a family.

In your absence, your spouse may not repay the full loan.
This may lead to legal or mental stress.
So term insurance is non-negotiable.

Choose a pure term plan

Avoid return-of-premium type

Cover amount should be minimum 15 to 20 times your annual income

If you earn Rs. 6 lakh annually, cover must be Rs. 90 lakh to Rs. 1.2 crore

Premium will be around Rs. 8,000 to Rs. 12,000 per year

Pay yearly premium, not monthly

Choose 30 to 35 years coverage

Take from reputed insurer

Do not take from LIC combo plans

Do not mix investment with insurance

You can set aside Rs. 700 to Rs. 1,000 per month for term insurance.
This protects your loan and family.

Step 3: Begin SIP After Insurance and Emergency Fund
Once you set term insurance and begin emergency fund, start SIP.
Don’t wait for a big amount.
Start small but keep it consistent.

Begin with Rs. 7,000 to Rs. 10,000 monthly SIP

Choose regular plans through MFD guided by CFP

Avoid direct plans

Direct plans give no advice, no service

Mistakes in direct plans lead to bigger losses

Use equity mutual funds for long term wealth

Use 3 types of categories:

Flexi cap fund – Rs. 4,000

Multicap or Balanced Advantage – Rs. 3,000

Small/Mid cap – Rs. 2,000

Do not select sector funds or international funds

Do not put SIP in ELSS for now

Start SIP with ECS/auto debit.
This creates discipline.

Why Index Funds Are Not Suggested
You may hear about index funds being low-cost.
But cost is not the only thing that matters.

Index funds copy the market blindly

They buy bad stocks if they are in index

They do not avoid market bubbles

They don’t have active human decisions

You can’t outperform markets with index funds

During market crashes, they fall more

No exit timing or rebalancing is done

Actively managed funds give:

Better returns with lower risk

Fund manager control during volatile markets

Sector rotation when needed

Better performance during crisis

So use actively managed regular funds with MFD and CFP guidance.

Suggested Plan for Rs. 15,000 Savings
You save Rs. 15,000 to Rs. 20,000 monthly.
Here is how to use it step-by-step:

Month 1 to 6:

Rs. 7,000 – Emergency Fund

Rs. 1,000 – Term Insurance

Rs. 7,000 – SIP in hybrid or flexi fund

Month 7 onwards:

Emergency fund will reach Rs. 50,000 to Rs. 1 lakh

Increase SIP from Rs. 7,000 to Rs. 12,000 or Rs. 15,000

Use flexi cap, multicap and midcap combination

Increase SIP by Rs. 1,000 every year

Home Loan EMI Management Tips
Your home loan EMI is ongoing for 25 years.
Do not focus on prepayment now.
Use money to create better return in SIPs.

Don’t use emergency fund to prepay

Don’t stop SIP to pay more EMI

Keep good credit score by paying EMI on time

Later, when salary grows, do prepayment in chunks

If interest rate is above 9%, consider balance transfer after 2 years.

Avoid These Common Mistakes
Don’t invest in LIC or ULIPs

Don’t put all savings in FD

Don’t skip health insurance

Don’t use credit card for regular expenses

Don’t rely on office group term insurance

Don’t try stock market without experience

Don’t keep money in savings account

Avoiding mistakes is as important as doing right investments.

Tax Rules to Keep in Mind
Equity mutual funds have new tax rules.

Long term capital gains above Rs. 1.25 lakh are taxed at 12.5%

Short term capital gains are taxed at 20%

For debt mutual funds, all gains taxed as per your slab

So, don’t do frequent switching.
Hold long term to save tax.

Track Your Progress Yearly
Once you start SIPs and insurance:

Review SIP performance every 12 months

Increase SIP amount with salary hikes

Rebalance between large, mid, and flexi caps

Track loan statements and insurance status

File tax returns correctly to claim benefits

Use a Certified Financial Planner to guide every year.

Final Insights
You are starting your financial journey correctly.
Start by securing your family through term insurance.
Then protect your life with an emergency fund.
Next, build long-term wealth through SIP.
Avoid risky products and low-return instruments.

Use active mutual funds through regular plans.
Take support from a Certified Financial Planner.
Avoid investing in direct plans without guidance.
Stay consistent and patient.
Your wealth will grow strongly over time.

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

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Ramalingam

Ramalingam Kalirajan  |9557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 09, 2025

Asked by Anonymous - Jun 26, 2025Hindi
Money
Sir I am 49, I am investing 35k / month(started from 2023) in sbi sip mostly equity funds. Ppf current balance 15lks, epf current balance 25k ,nps 4lks investing 6k . Both sip and nps will be step up each year by 10%. Please calculate my tentative corpus after 11 years
Ans: You are 49 years old now.
You are investing Rs. 35,000 per month in equity mutual funds.
You started this SIP in 2023.
The SIP is set to increase by 10% every year.
You are also investing Rs. 6,000 per month in NPS.
That is also increasing 10% yearly.
You have Rs. 15 lakhs in PPF already.
You have Rs. 25,000 in EPF.
You want to know your corpus by age 60.
Let’s build your answer with a full 360-degree plan.

Understand Your Investment Strategy

You have taken good steps so far.
SIP in equity funds gives you growth.
NPS gives you long-term support and tax benefits.
PPF adds safety and tax-free interest.
Your investments are diversified across equity and debt.
You are also following SIP step-up strategy.
That builds strong discipline.
Very few investors plan step-up.
You are doing the right thing.

Now let us look at what these can become in 11 years.

Expected Corpus from SIP in Equity Funds

You are investing Rs. 35,000 monthly now.
This amount increases by 10% every year.
You will continue this till age 60.
That gives you 11 more years.

Assume your funds are actively managed.
Avoid index funds.
They copy the market blindly.
They fall fully during crashes.
They give no protection.
Actively managed funds perform better.
They have expert fund managers.
They help in bad markets too.
They adjust portfolio regularly.
This makes your corpus more stable.

Now coming back to SIP.

With 10% yearly step-up,
Your SIP amount increases every year.
In 11 years, this strategy can build a large corpus.
Based on historical equity fund performance,
The equity SIP may grow to Rs. 1.05 crore to Rs. 1.20 crore.
This is based on 10% to 11% annualised return.

Please note, equity returns are not fixed.
They go up and down every year.
But over 10+ years, equity performs well.

Don’t panic during market falls.
Stay invested throughout.
Do not stop SIP during correction.
Do not try to time the market.
Just stay steady and continue.

Expected Corpus from NPS

You are investing Rs. 6,000 monthly now.
With 10% step-up, it will increase yearly.
NPS invests in equity and debt mix.
It is also a retirement-focused product.
NPS is better than traditional pension plans.
Because it gives market-linked returns.

If you continue this NPS for 11 years,
The corpus may grow to around Rs. 18 lakh to Rs. 21 lakh.
This assumes an average return of 9% per annum.
Again, this is just an estimate.

You can select equity mix inside NPS.
Don’t put full money in government bonds.
Choose some equity exposure in NPS.
It will give higher growth in long run.

Avoid Tier-1 NPS withdrawal before 60.
It will attract tax and limit your retirement fund.
NPS should be used only for age 60 onwards.

Expected Value of Your PPF Account

PPF gives fixed interest.
Currently it is around 7.1%
It is completely tax-free.
That is the biggest benefit.

You already have Rs. 15 lakh in PPF.
If you don’t add more, it will grow on its own.
In 11 years, it can grow to around Rs. 30 lakh.
That is if rate remains constant.

If you keep contributing yearly, it will be even more.
PPF is a great tool for safe and stable money.
Use this for post-retirement needs.
Or children’s support later.

Don’t break your PPF.
Keep it growing till maturity.
It is a key pillar of your retirement.

EPF Is Still Small – Can Be Grown

You mentioned EPF balance is Rs. 25,000
This is very small at this stage.
You may be self-employed now.
Or may have exited salaried employment.

If you are working, continue EPF contributions.
But don’t depend too much on EPF.
Focus more on equity mutual funds and NPS.
EPF is for salaried employees mainly.
It gives fixed return, but no inflation beating growth.

If you have stopped working, let EPF be.
Don’t withdraw it unless urgent.
It earns interest even if idle.

Putting All Together – Total Corpus by Age 60

Here is your estimated total retirement corpus:
Let’s break it component-wise:

Equity Mutual Funds SIP Corpus: Rs. 1.05 crore to Rs. 1.20 crore

NPS Corpus: Rs. 18 lakh to Rs. 21 lakh

PPF Corpus: Rs. 30 lakh (if no new contribution)

EPF Corpus: Rs. 25,000 (if left idle)

So total corpus at age 60 can be around:

Rs. 1.55 crore to Rs. 1.75 crore

This is a strong base.
You can make this even stronger.
You may increase SIP step-up to 15% in few years.
You may invest more lumpsum if bonus or savings come.
Don’t keep idle money in savings account.
Shift to liquid fund or STP into equity.

How to Manage and Improve This Plan

Here are tips to make this better:

Stay invested fully for next 11 years

Never stop SIP during market crash

Avoid investing in real estate again

Don’t fall for LIC, ULIP, endowment traps

If holding any such policy, surrender them and invest in mutual funds

Review SIP funds once a year with Certified MFD with CFP

Avoid direct mutual funds

Direct funds don’t guide you

They don’t review or rebalance

Regular plans via Certified MFD give handholding

They keep your goal on track

Also avoid index funds.
They copy index blindly.
They crash fully when market crashes.
No safety, no fund manager thinking.
Actively managed funds are much better.

Use This Corpus Wisely After 60

After age 60, don’t withdraw fully
Use SWP from mutual funds
Withdraw monthly amount for expenses
This keeps corpus growing and gives income
Use PPF maturity for safety
Use NPS annuity carefully
Don’t invest in annuity blindly
They give poor return and block money
Take CFP guidance on how much annuity to buy

Health Insurance and Estate Planning

Don’t ignore health insurance
Medical inflation is rising every year
Take Rs. 10–20 lakh cover now
Premiums are low before 55

Also write a will
List all your mutual funds, NPS, PPF
Add nominees to every account
Let your spouse know login and folio numbers
This avoids confusion later

Finally

You have taken the right path.
Your SIP step-up strategy is strong.
You have balance between growth and safety.
Your long-term corpus can cross Rs. 1.7 crore
If you stay focused and consistent
Avoid real estate, index funds, ULIPs and annuities
Avoid direct funds and use Certified MFD with CFP
Revisit your goals every year
Take advice, review plan, and keep your discipline strong

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9557 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 09, 2025

Asked by Anonymous - Jul 09, 2025Hindi
Money
Hello Sir, I am earning 45K per month. I have no debts or loans. I have 25 lakhs mutual funds, 9 lakhs in shares and 45 lakhs in government bonds. My monthly expenses is around 20-20K. What are the future steps to take to increase my savings and investments.
Ans: You are in a very strong position. Your monthly income is Rs. 45,000. You spend only Rs. 20,000 to Rs. 25,000. There are no loans or debt. You have:

Rs. 25 lakhs in mutual funds

Rs. 9 lakhs in direct shares

Rs. 45 lakhs in government bonds

You are already ahead of many when it comes to saving and investing. The discipline you follow is truly appreciable. You are spending wisely and investing patiently. Now, let us create a strategy that can help you move to the next level.

We will look at this from a 360-degree angle, keeping future stability, growth, and protection in mind.

Review of Current Financial Strength
Before making any changes, it is important to understand your current position. Let’s review.

Your monthly surplus is strong: You are saving around Rs. 20,000 monthly

No EMIs or credit card dues: This is excellent and keeps you stress-free

Mutual fund investments are solid: Rs. 25 lakhs is a strong base

Government bonds offer safety: Rs. 45 lakhs shows your conservative mindset

Direct equity investment is fair: Rs. 9 lakhs adds growth potential

This gives you a total portfolio size of about Rs. 79 lakhs, which is impressive. Your consistent discipline has paid off well.

Assessing Investment Goals
Having money is not enough. It needs direction. Let’s identify your future goals.

When do you want to retire?

Do you want to buy anything big in the future?

Is there any family responsibility to plan for?

Do you have a health emergency plan?

What kind of lifestyle do you want post-retirement?

Unless your goals are clearly written and measured, investment has no meaning. So your next step is to write down your key goals.

Emergency Fund – First Layer of Protection
You didn’t mention any emergency corpus. That is the first gap to fix.

Keep 6 months’ expenses ready — Rs. 1.5 to 2 lakhs minimum

Park this money in a liquid mutual fund or sweep-in FD

Do not touch this unless it is a real emergency

Emergency fund will help you stay invested during market falls or job loss.

Health Insurance – Non-Negotiable Shield
You also didn’t mention any health insurance. That is a serious risk.

A basic health cover of Rs. 5–10 lakhs is must

Buy a good individual or floater policy

Don’t depend only on savings for hospital bills

Medical costs can wipe out your savings. Insurance is a must to protect investments.

Mutual Funds – The Core Growth Engine
You already have Rs. 25 lakhs in mutual funds. That’s excellent. Keep these points in mind:

Stay invested through regular plans under guidance of a Certified Financial Planner

Avoid direct funds. They don’t offer rebalancing or behavioural support

Regular plans help you adjust based on market cycles

Avoid index funds. They don’t adapt during market volatility

Actively managed funds are better. They bring expert-driven performance

Increase your SIP to at least Rs. 10,000 per month

Prioritise equity and hybrid funds for long-term wealth

Mutual funds should be the backbone of your retirement corpus. Stay invested for at least 10–15 years.

Government Bonds – Stability is Good, But Not Enough
You hold Rs. 45 lakhs in government bonds. That is safe, but low growth.

Government bonds offer capital safety, but returns are fixed

Inflation may reduce their actual value over time

Keep them only for capital preservation, not for long-term growth

Shift a portion to actively managed debt mutual funds over time

Use short-duration and corporate bond funds through regular plans

Diversify from only bonds. You need a better mix of equity, debt, and liquid options.

Shares – High Risk, Needs Close Attention
You have Rs. 9 lakhs in direct stocks. Direct stock investing needs effort.

Only keep this portion if you have deep knowledge

Stocks can give high returns, but also cause deep losses

Avoid increasing this without expert help

It is better to switch some of it to mutual funds

Let mutual fund managers handle diversification and risk

If you do not track stock markets actively, don’t grow this portion. Mutual funds are safer and more balanced.

Monthly Investment Strategy – Step-by-Step Growth
You save about Rs. 20,000 monthly. Here's how to deploy it:

Rs. 10,000 monthly SIP in equity mutual funds

Rs. 5,000 in hybrid or balanced advantage funds

Rs. 3,000 in debt mutual funds or short-term plans

Rs. 2,000 for increasing emergency fund or top-up health cover

You can revise this every year as income or goals change. Keep a long-term view.

Rebalancing Portfolio – Smart Step for Long-Term Success
Your portfolio is too conservative at present. Too much in bonds.

Shift some money from government bonds to equity mutual funds

Slowly reduce bond holding to 30–40% of your total

Let equity funds take 50–60% allocation

Keep 5–10% in liquid or short-term options

Review portfolio mix yearly with a Certified Financial Planner. This will help you control risk.

Tax Planning – Use Mutual Fund Efficiency
Mutual funds are tax efficient when used smartly.

Equity mutual funds have LTCG tax of 12.5% above Rs. 1.25 lakh

STCG in equity is taxed at 20%

Debt funds are taxed as per income slab

Avoid frequent buying and selling. That creates higher tax. Let funds compound quietly.

Avoid These Common Mistakes
It’s also important to avoid traps. Don’t make these mistakes:

Don’t increase exposure to direct stocks

Don’t invest in NFOs, ULIPs, or insurance plans

Don’t rely on fixed deposits for long-term goals

Don’t stop SIPs during market fall

Don’t put more money in real estate

Stick to mutual funds with expert guidance. That gives best control and growth.

Protecting Wealth – Insurance and Nomination
Wealth without protection is incomplete. You need:

Health insurance

Personal accident cover

Proper nominee in every investment

Keep all documents organised and updated

Secure your portfolio legally and practically. That ensures peace for you and your family.

Future Planning – Retirement and Passive Income
Let’s now look ahead. Plan for your retirement and passive income.

Decide at what age you want to retire

Work backward to see how much monthly income you want

Create a corpus that can give that income from mutual funds

Use Systematic Withdrawal Plan (SWP) after retirement

Combine this with government bonds for stable cashflow

With Rs. 79 lakhs already, you are not far from building that future. Stay consistent.

Systematic Wealth Building – Long-Term Habits Matter
You don’t need a big income to become wealthy. Discipline creates long-term success.

Keep monthly expenses under control

Increase SIPs with income

Review investments yearly

Stay focused during market ups and downs

Learn a little about finance regularly

Work with a Certified Financial Planner

Wealth creation is not a one-time task. It is a lifelong process.

Finally
You are in a very good financial position. Your discipline has given you strong savings. Your mutual funds, shares, and bonds already total Rs. 79 lakhs. With no debt and low expenses, you have full freedom to grow steadily.

Just focus on:

Clearly writing your goals

Building your emergency and insurance shield

Reducing direct stock and bond exposure over time

Growing mutual fund portfolio with proper asset mix

Staying invested for long and avoiding panic

Reviewing yearly with Certified Financial Planner

Don’t run after returns. Stick to your plan. Stay simple and consistent. You will surely reach your dreams.

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

...Read more

Nayagam P

Nayagam P P  |8367 Answers  |Ask -

Career Counsellor - Answered on Jul 09, 2025

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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