i am MSc in bio and M.Phil in bio Want to do PHD what should i do

Ans: You are doing a great job managing your responsibilities as a mother and sole earner. Taking care of your family, while also investing for the future, is truly admirable. Let us now assess your overall financial situation from a 360-degree perspective.

Income and Expense Review

Your monthly income is Rs. 70,000.

Household expenses are limited to Rs. 10,000. That is very good control.

You are saving Rs. 5,000 monthly in cash for emergencies. This is a positive start.

You have Rs. 4 lakhs earmarked for children’s education. Very thoughtful planning.

Total committed monthly investments are Rs. 12,000.

You have struck a fair balance between expenses and savings.

Let us evaluate your investments and suggest improvements.

Review of Current Mutual Fund Investments

You are investing in 3 mutual fund schemes:

A flexi-cap fund (Rs. 7,000)

A sectoral tech fund (Rs. 2,000)

A small-cap fund (Rs. 1,000)

Here is the assessment:

1. Flexi Cap Fund (Rs. 7,000)

This category gives fund manager freedom to invest across large, mid and small caps.

You have chosen a well-diversified fund type. This is suitable for medium to long term.

Continue with this fund. Keep monitoring annually for performance.

2. Sectoral Tech Fund (Rs. 2,000)

Sector funds are high-risk. They lack diversification.

They perform only in specific market cycles. Not suitable for long-term goals alone.

Suggest you stop SIP here gradually. Shift this amount to diversified equity fund.

3. Small Cap Fund (Rs. 1,000)

Small caps can give high returns but with high volatility.

It is good you have kept the exposure small.

Retain it if your risk appetite allows. Avoid increasing it further.

Retirement and Long-Term Security Planning

As the sole breadwinner, your financial safety is very important.
You are 40 now. Planning for retirement should be given high priority.

Suggestions:

Start a separate SIP for retirement purpose.

Choose a diversified multi-cap or large-cap biased fund.

Invest at least Rs. 3,000 monthly if possible.

This can grow into a strong retirement base over 15-20 years.

Do not depend on EPF or PPF alone.

Children’s Education Fund Planning

You have already saved Rs. 4 lakhs. That is a good start.
But children’s education needs can be higher in future.

Suggestions:

Continue SIP in a good diversified equity mutual fund.

Allocate Rs. 3,000 monthly just for this goal.

Stick to funds that focus on large and mid-cap segments.

Avoid thematic or sector funds for this purpose.

Review portfolio annually to switch if performance drops.

Emergency Fund Planning

You have just started building this. That is great.

Suggestions:

Target 6 to 12 months of expenses as emergency fund.

Since your expenses are Rs. 10,000, aim for Rs. 60,000 to Rs. 1.2 lakhs first.

Store in liquid mutual fund or bank RD or savings account.

Avoid using this fund unless true emergency arises.

Gold Investment Strategy

You asked about gold ETF investments.

Let’s understand the points first.

Disadvantages of Index Funds and ETFs:

ETFs and index funds are passively managed.

They just copy an index or a commodity. No fund manager decisions.

No flexibility to exit underperforming stocks.

These funds underperform in sideways or bear markets.

Gold ETFs have no income generation ability.

They carry expense ratios but no compounding benefits like equity funds.

Gold prices stay flat for years sometimes.

Better Alternative – Actively Managed Gold Mutual Funds:

Choose gold mutual funds with active management.

SIP route reduces gold volatility risk.

You can invest Rs. 1,000 monthly for asset allocation purpose.

Limit gold investment to 5-10% of total portfolio.

Use gold as a hedge, not wealth creation.

SSS and PPF Contribution Review

You are investing Rs. 1,000 monthly in each.

These are safe and government-backed. Good for capital protection.

But returns are lower than equity mutual funds.

Consider this portion more for safety than wealth growth.

Continue if you want low-risk component in your plan.

Do not increase these amounts unless tax benefit is needed.

Cash Flow and Budgeting Evaluation

Monthly investments: Rs. 12,000 (Mutual funds + PPF + SSS)

Monthly saving in cash: Rs. 5,000

Monthly fixed expense: Rs. 10,000

That leaves you with nearly Rs. 43,000 monthly for flexible use.
If possible, increase mutual fund SIPs by Rs. 2,000-3,000 every 6 months.
This will build long-term wealth faster.

Insurance and Risk Coverage (Assuming You Have None)

As you did not mention life or health insurance, this needs urgent attention.

Life Insurance:

You are the only earning member.

Buy a term plan of at least Rs. 50 lakhs to Rs. 1 crore.

This will protect your family if anything happens to you.

Only choose pure term insurance. No investment-linked policy.

Health Insurance:

Cover the entire family under one floater policy.

Go for Rs. 10 lakh coverage at minimum.

Avoid relying only on employer health cover (if any).

Accident Cover:

Low premium personal accident policy is also helpful.

Helps in case of temporary or permanent disability.

Tax Saving Suggestions

PPF and SSS qualify under 80C.

Life insurance premiums also help.

Equity Linked Savings Schemes (ELSS) offer better returns and tax benefits.

You can allocate Rs. 1,000 to Rs. 2,000 per month to ELSS.

Keep it locked for 3 years and review after that.

Discipline and Investment Strategy Tips

Stick to SIPs even when market is down.

Do not stop or switch funds too frequently.

Rebalance your portfolio once a year.

Increase SIPs gradually with income rise.

Keep asset mix – equity, debt, gold – in balance.

Always keep investment and insurance separate.

Avoid Direct Mutual Funds Route

Many people invest in direct mutual funds.
But this is risky without expert guidance.

Why Avoid Direct Funds:

You lose the support of a Certified Financial Planner.

No one tracks performance for you.

No help for rebalancing or goal tracking.

A regular plan through a Certified Financial Planner gives full service.

It helps you make decisions without emotional errors.

Finally

You are already doing better than many people with your planning.

Continue with your flexi-cap and small-cap funds.

Stop the sectoral tech fund and switch to a diversified equity fund.

Avoid gold ETFs. Choose an actively managed gold mutual fund instead.

Start a SIP for retirement and children's higher education.

Protect your family with term and health insurance urgently.

Slowly build your emergency fund to reach Rs. 1 lakh minimum.

Increase SIPs every year as your income rises.

Don’t mix insurance and investment.

Work with a Certified Financial Planner to review annually.

You are on the right path. Just a few small corrections will give you big results over time.

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