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Mayank Chandel  |2510 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Aug 29, 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
Abhilash Question by Abhilash on Aug 12, 2023Hindi
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Career

Sir, my son has received admission offer in KIIT University Bhubaneswar in CSE. We are not sure how will be future prospects for CSE from KIIT, and is KIIT a good choice for CSE? How are the industry recognition for KIIT? Please guide

Ans: Hello Abhilash
KIIT is a good institution you can definitely for it.
Career

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Mayank

Mayank Chandel  |2510 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jul 18, 2024Hindi
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Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
I Want to invest 10K per month in MF for over 5 years. Which is better option
Ans: It’s great that you want to invest Rs.10,000 per month.
Doing it for 5 years shows clarity and discipline.
A good investment habit is more important than just returns.
Let’s create a 360-degree plan for this journey.

? Start With a Clear Goal for the 5-Year Investment
– Know why you are investing.
– Is it for a car, house, travel, or child's education?
– The goal decides the risk level.
– It also helps in selecting the right fund type.

? Understand That 5 Years Is a Medium-Term Horizon
– Less than 3 years is short-term.
– More than 7 years is long-term.
– 5 years sits in between.
– So, investment should balance growth and safety.
– Full equity may be too risky.
– Full debt may not give good growth.

? Mix of Equity and Debt is Needed
– Hybrid funds suit this 5-year goal.
– They offer a mix of equity and debt.
– This gives better returns than full debt.
– It also gives lower risk than full equity.
– They suit medium-term investors like you.

? Prefer Actively Managed Mutual Funds
– Actively managed funds have better research teams.
– They try to beat the market returns.
– Fund manager takes care of stock selection.
– They adjust portfolio based on market changes.
– In 5 years, active management matters a lot.
– Index funds cannot do this.

? Why Index Funds Are Not Suitable Here
– Index funds just copy the index.
– They don’t protect you during market fall.
– No active fund manager involvement.
– They are passive and rigid.
– In 5 years, even one bad year can hurt.
– So, don’t choose index funds for this plan.

? Choose Regular Funds, Not Direct Plans
– Direct plans offer no personal help or support.
– You need to do research and track on your own.
– This increases chances of wrong fund selection.
– Also, rebalancing is missed often.
– Regular funds through Certified Financial Planner-guided MFDs give full service.
– They help in review, tracking, and goal alignment.

? Disadvantages of Direct Plans You Must Know
– No guidance or review at all.
– Risk of overexposure or wrong fund category.
– Can lead to underperformance.
– Many investors panic during market correction.
– In regular plans, expert guidance avoids panic.
– You also get behavioural coaching, which is valuable.

? Start with SIP in Growth Option of Mutual Fund
– SIP keeps discipline.
– Growth option helps build corpus faster.
– Don’t choose dividend or IDCW options.
– They reduce compounding benefit.
– Let the fund grow fully for 5 years.

? If You Want Liquidity, Choose Hybrid with Low Volatility
– You may need partial money anytime.
– Choose a fund with low drawdown.
– This gives peace even if markets go down.
– Low volatility gives confidence to stay invested.

? Don’t Depend on Past Returns
– Past returns don’t repeat always.
– Choose funds based on process, not just numbers.
– Fund consistency matters more than one-time outperformance.
– Look for risk-adjusted returns, not only high returns.

? Use SIP STP Combo for Smooth Investing
– You may park one month’s SIP in liquid fund.
– Use STP to move it weekly to equity fund.
– This gives better cost averaging.
– It reduces market timing risk.
– Useful when markets are volatile.

? Avoid ULIPs or Insurance-Based Investments
– These are poor options for 5 years.
– They have high charges and low flexibility.
– Returns are neither stable nor high.
– If you already hold any, consider surrendering.
– Reinvest that amount in mutual funds.

? Rebalance the Portfolio Annually
– Your 5-year investment may need changes every year.
– Equity-debt mix may shift due to performance.
– Rebalancing keeps risk in control.
– Your Certified Financial Planner will help do this.
– Don’t ignore yearly reviews.

? Consider Taxation When Redeeming After 5 Years
– Equity funds held over 1 year are long-term.
– LTCG above Rs.1.25 lakh is taxed at 12.5%.
– Short-term gains under 1 year are taxed at 20%.
– Debt mutual funds are taxed as per your tax slab.
– Your Certified Financial Planner will guide on tax-efficient withdrawal.

? Avoid SIP Top-Ups Without Review
– Increasing SIP each year is good.
– But review fund performance before top-up.
– Don’t just increase SIP blindly.
– Check if your fund is still suitable.
– Regular review prevents mismatch with your goal.

? Keep Emergency Fund Separate
– Don’t use this Rs.10,000 SIP amount for emergencies.
– Keep separate funds for that purpose.
– At least 3–6 months’ expenses in liquid fund.
– This keeps your SIP running in tough times.
– Never stop SIP for temporary needs.

? Avoid Real Estate for This Goal
– Real estate doesn’t suit 5-year goals.
– Very hard to buy and sell quickly.
– No monthly returns in most cases.
– Maintenance costs are high.
– Mutual funds give better liquidity and growth.

? Protect the Goal With Term Insurance
– In case of unexpected death, family gets money.
– Buy a pure term plan only.
– Don’t mix insurance with investment.
– ULIPs or endowments are low-return options.
– If you have them, surrender and reinvest in mutual funds.

? Don’t Chase Fancy or Trendy Funds
– Sector funds or thematic funds are risky.
– They may shine for short periods.
– But can fall deeply without warning.
– For 5 years, choose well-diversified hybrid or equity funds.

? SIP Delay Can Reduce Final Corpus
– Every month’s delay matters.
– Start immediately. Even one missed SIP affects growth.
– Time in market is more important than timing.
– Don’t wait for market bottom to start.

? Keep Investment Linked to Your Goal
– If the goal is near, reduce equity exposure.
– Don’t take high risk in last year.
– Move funds to safer options in final year.
– This protects your gains from sudden market fall.

? Don’t Withdraw Early Without Purpose
– Many investors withdraw early due to fear.
– This breaks compounding and reduces returns.
– Stay committed to your 5-year goal.
– Trust the process and stay invested.

? Final Insights
– Your Rs.10,000 monthly SIP for 5 years is a solid start.
– Choose hybrid or balanced mutual funds with active management.
– Avoid index, direct, annuity, or insurance-linked investments.
– Don’t follow past returns blindly.
– Choose regular plans with Certified Financial Planner support.
– Review yearly. Rebalance as per need.
– Don’t panic in market correction. Stay invested.
– Link to a goal. Stay disciplined.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 10, 2025Hindi
Money
I am retirinig after 15 years service in armed forces, i am getting a lumsum around 40,00,000, and have a home loan of 7,00,000, my daughter is 5 years old. How and where can i invest the money recieved. Please guide
Ans: Thank you for your dedicated service to our nation.
Retiring after 15 years in the armed forces is a proud achievement.
Receiving Rs. 40 lakh lumpsum is a great opportunity to secure your next phase.

You also have a home loan of Rs. 7 lakh.
And a lovely responsibility—a 5-year-old daughter.
Now is the right time to plan with care and clarity.

Let us structure your financial journey with full care from every angle.

? Assessing your current financial picture

– You are receiving Rs. 40 lakh as lumpsum
– Home loan outstanding is Rs. 7 lakh
– Your daughter is just 5 years old
– You are at a stage of life shift – from forces to civil

– The Rs. 40 lakh must cover multiple goals:
– Loan clearance
– Emergency buffer
– Investment for growth
– Child’s future planning

– You must protect the money and grow it wisely

? Handling your home loan immediately

– Home loan is only Rs. 7 lakh
– Interest may be low, but still a monthly burden
– Best to clear this from your lumpsum now

– This frees up cash flow every month
– You can then divert EMIs towards investment

– Peace of mind also improves without debt
– So pay off the Rs. 7 lakh first from the Rs. 40 lakh

– That leaves you with Rs. 33 lakh to plan with

? Setting up an emergency fund first

– Life after service brings new uncertainties
– Job search, new income flow, health events etc.

– You must keep aside Rs. 3–4 lakh as safety buffer
– Put this in liquid mutual funds or short-term instruments

– It should cover 6–9 months of household expenses
– Never mix this money with long-term investments

– This buffer protects your other plans from interruptions

? Secure your daughter’s future goal early

– Your daughter is 5 now
– Higher education goal is at least 12–13 years away

– This is the perfect time to start equity investment for her
– You can start a long-term SIP in actively managed mutual funds

– Create a separate investment goal for this
– Allocate Rs. 8–10 lakh from your lumpsum towards this goal

– Use large & midcap, flexicap, and some midcap allocation
– Avoid smallcap funds for this goal due to volatility

– You can do monthly SIP or one-time lumpsum
– But better to stagger lumpsum over 6 months

– This will average out the market levels

– Review this goal every 2 years
– As you near the goal, slowly shift to hybrid or safer funds

– Do not use any LIC, ULIP or insurance-based education plans
– They offer low returns and poor flexibility

– If you already have such policies, assess their returns
– If below 6%, consider surrendering and reinvesting in mutual funds

? Investing for your own retirement

– You have retired from defence, but second career may continue
– Still, your future retirement must be planned well

– After loan, emergency and daughter’s fund, you have around Rs. 20–22 lakh left

– This should be invested in a mix of growth and balanced funds
– Do not put everything in one fund type

– Allocate 40% to flexicap and large & midcap funds
– Allocate 30% to hybrid or equity savings funds
– Allocate 20% to pure debt mutual funds
– Keep 10% in liquid or ultra-short funds for flexibility

– This creates a balanced portfolio with good growth potential
– At the same time, you get safety from market drops

– Use only regular plans through a Certified Financial Planner
– Avoid direct funds. They have many hidden issues

– Direct plans give no guidance or rebalancing
– Regular funds via CFP-backed MFD give long-term value and care

– Also avoid index funds
– Index funds only follow markets, they do not protect downside

– Active funds managed by experts adjust better in falling markets
– They also offer more suitable diversification

– So choose quality active funds under expert guidance

? Build consistent monthly investment habit

– After settling into your second career, you’ll have regular income
– From that, start SIPs in long-term mutual funds

– Even Rs. 10,000–15,000 SIP monthly can build large wealth in 10–15 years
– Increase the SIP amount every year as your income grows

– Combine this with your existing investments to reach goals faster

– Don’t stop SIPs during market downs
– These are the times you actually buy more units at lower cost

? Avoid real estate and traditional products

– Do not buy new property for investment
– Real estate is illiquid, costly, and has poor returns now

– Also avoid insurance-linked savings products
– Endowment plans, ULIPs, and guaranteed returns give very low growth

– They lock your money and give little flexibility
– You may lose on time value and opportunity cost

– Always invest in mutual funds for real long-term growth
– Separate insurance and investment strictly

? Ensure proper insurance protection for the family

– Take a pure term insurance policy
– It gives large cover for small premium

– Your daughter’s future must be protected if anything happens to you
– Take cover of at least 10 times your annual income

– Also take health insurance for you and your family
– Don't depend only on ex-servicemen health schemes

– Medical costs in private hospitals can be high
– A good health policy gives choice and better comfort

? Nomination and estate planning

– Add proper nominations to all your bank and investment accounts
– This avoids delay and confusion for your family

– Create a simple Will
– Include your daughter’s guardian details if needed

– A Will gives peace of mind to your loved ones
– Review it every few years or after major life events

? Tax planning with your new investments

– Equity mutual funds have new tax rules
– LTCG above Rs. 1.25 lakh taxed at 12.5%
– STCG taxed at 20%

– Debt mutual funds taxed as per your slab rate
– So plan exits and rebalancing with a Certified Financial Planner

– Avoid selling funds too often
– Let money grow for 5+ years to get full benefit

– Tax-efficiency improves with long-term view

? If you plan to start a business or new job

– Keep part of your corpus liquid
– Avoid locking entire Rs. 40 lakh in long-term assets

– You may need capital for business or new career expenses
– Maintain flexibility in your investments

– You can later move unutilised portion into long-term investments

? Stay focused on discipline and tracking

– Money discipline is more powerful than product selection
– Do not react to market noise

– Review your investments once a year
– Take help from a Certified Financial Planner to stay on course

– Avoid random investing or jumping funds frequently
– Stay with your plan for 10–15 years

– Small adjustments with proper advice are better than full changes

? Finally

– Rs. 40 lakh is a strong financial base
– With right guidance, it can build lasting wealth

– Use this to clear debt, secure daughter’s future, and plan your retirement
– Choose active mutual funds only
– Avoid direct and index options

– Get insurance protection in place
– Keep investments simple, goal-based, and long-term

– You have served the country. Now let your money serve you and your family

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
Hi sir, I m 41 years old. I am working in a private company with salary 75000/- pm + accomodation provided by company. I have one child(boy) in 2nd standard. My current portfolio is MF(SIP 15000 pm) - 20 lakh, PF - 4 Lakh, Others - 2 lakh in company's society Group term insurance by company- 50 lakh + 10 lakh by company society, Mediclaim - 10 lakh annually including family. I have term insurance of 1 crore. I have already build my own house at native with no loan. I am the only child of my parents & having one married sister. I have a car loan of 8 lakh with monthly emi 15000/- pm remaining 5 years tenure. Please suggest for better financial planning keeping in view of son's higher education & retirement life.
Ans: Appreciate your planning efforts at this stage. You have already built a strong base.

There is good discipline in your SIP, insurance cover, and emergency readiness.

Now we will look at your finances in full circle. We will keep the focus on your child’s higher education and your retirement.

Let us review each area with proper structure.

? Current Income and Expense Picture

– Salary is Rs. 75,000 per month. Company gives accommodation, which saves rent.

– Car loan EMI is Rs. 15,000. SIP is Rs. 15,000. Total outflow: Rs. 30,000.

– Remaining Rs. 45,000 covers living expenses, savings, child’s needs, and any extra spends.

– No rental income or side business mentioned. So only one source of income for now.

– Important to build second source of income in future, either passive or flexible.

? Emergency Reserve and Contingency Cover

– You haven’t mentioned your emergency fund. You should build at least Rs. 4 to 5 lakh.

– This covers 6 months of living + EMI + SIP expenses.

– Park this in liquid mutual fund or short-duration debt fund.

– Don’t use this for any investment or goal. Keep it separate and untouched.

– This gives peace of mind in job change or emergency medical need.

? Review of Life Insurance Coverage

– Group term by company: Rs. 50 lakh. Society: Rs. 10 lakh. Own cover: Rs. 1 crore.

– Total Rs. 1.6 crore cover. This is decent but may not be sufficient long-term.

– You are 41 now. Your son’s full dependency is for another 17–18 years.

– Ideal cover should be 12x to 15x your annual income plus loan liabilities.

– Re-evaluate your term insurance after 2 years. Increase by 50% if needed.

– Keep personal term insurance as main cover. Don’t rely on group term fully.

? Health Insurance Protection

– Rs. 10 lakh mediclaim for family is good.

– Check if it includes critical illness cover. If not, take Rs. 10 lakh critical illness plan.

– Health costs are rising. Avoid over-dependence on company coverage.

– Consider super top-up plan of Rs. 15 lakh with Rs. 10 lakh deductible.

– This will cover major hospital bills with minimal premium increase.

? Mutual Fund SIP and Wealth Building

– Rs. 15,000 SIP monthly. Portfolio value is Rs. 20 lakh. This is a strong start.

– Your SIP should be diversified across large-cap, flexi-cap, and balanced advantage.

– Do not hold momentum or thematic funds for long term goals.

– Increase SIP by 10% every year to beat inflation and reach bigger corpus.

– Avoid direct funds. Invest through regular plans with Certified Financial Planner support.

– Direct funds need time and research. Without that, wrong choices may affect growth.

– A Certified Financial Planner-backed MFD gives asset allocation advice and monitoring.

– This improves your success ratio for long-term wealth generation.

? Car Loan and Liability Review

– Outstanding loan: Rs. 8 lakh. EMI: Rs. 15,000. Tenure: 5 years.

– Interest cost is high for car loans. If possible, prepay in parts.

– But do not stop SIPs to prepay. Balance is needed.

– Use bonuses or incentives to make part-payments yearly.

– Do not take personal loans or consumer durable loans. Avoid EMI traps.

– Focus on being debt-free before age 50. That gives freedom and more retirement savings.

? Planning for Son’s Higher Education

– Your son is in 2nd standard. You have about 10–12 years to plan his college.

– Based on current trends, higher education costs can be Rs. 25 to 40 lakh.

– Start goal-specific SIP of Rs. 10,000 to Rs. 12,000 per month from now.

– Choose 1 flexi-cap, 1 large & mid-cap, and 1 balanced advantage fund.

– Increase SIP by 10% every year for better corpus growth.

– Review this goal yearly with your planner. Track progress and adjust if needed.

– Avoid using existing corpus for this goal. It will affect your retirement fund.

? Retirement Planning Roadmap

– You have 19 years left for retirement at age 60.

– Your PF balance is Rs. 4 lakh. SIPs and MFs: Rs. 20 lakh.

– Start separate retirement SIP of Rs. 10,000 to Rs. 15,000 per month.

– Invest this in a mix of large-cap, hybrid aggressive, and flexi-cap funds.

– Retirement corpus needed will be approx. Rs. 2.5 crore to Rs. 3 crore (inflation adjusted).

– Increase SIP annually by 10%. Delay retirement by 2–3 years if corpus falls short.

– After age 50, slowly reduce equity and shift to debt and hybrid funds.

– Don’t depend only on EPF and gratuity. Market-linked returns will beat inflation.

– At retirement, do not opt for annuity. Use SWP from mutual funds and laddered FD.

? Asset Allocation and Portfolio Review

– Present allocation is MF + PF + society savings. No gold or debt allocation mentioned.

– Asset allocation for your age should be 60% equity, 30% debt, 10% cash/gold.

– Add debt funds or arbitrage funds for short term and stability.

– Gold can be 5% in form of gold ETFs or sovereign gold bonds.

– Avoid index funds. They do not outperform in Indian market over full cycles.

– Actively managed funds give better returns with fund manager research advantage.

– Index funds have no downside protection or human strategy in crashes.

? Future Financial Milestones to Track

– Build Rs. 40–50 lakh for son’s higher education by age 17.

– Build Rs. 2.5–3 crore retirement fund by age 60.

– Create emergency fund of Rs. 5 lakh in next 6 months.

– Maintain health and term cover. Review both every 3 years.

– Pay off car loan early. Do not buy new car on EMI after this.

– Increase income by building skills or part-time work over next 5 years.

– Prepare will and nomination for all accounts by age 45.

? Tax Planning Considerations

– Continue with EPF contribution. Also invest in ELSS for Section 80C benefit.

– Avoid over-investment in insurance for tax. Focus on goal-linked MF SIPs.

– Use tax harvesting in mutual funds to reduce capital gains every year.

– Do not invest only for tax-saving purpose. Invest for goal first, tax second.

– Keep track of capital gains on MF. New tax rule:

STCG in equity funds taxed at 20%.

LTCG above Rs. 1.25 lakh taxed at 12.5%.

Debt fund gains taxed as per your income slab.

? Family Protection and Estate Planning

– You are the only child of parents. Ensure you have joint accounts where needed.

– Nominate your spouse or son for all MF, PF, insurance and bank accounts.

– Prepare a basic Will after age 45. Keep it updated every 5 years.

– If your parents are dependent, include health coverage for them too.

– Teach financial basics to your wife. She should know key documents and process.

? Monthly Action Plan

– Review SIP allocation with Certified Financial Planner every 6 months.

– Increase SIP by 10% yearly.

– Start separate SIP for education and retirement.

– Build Rs. 5 lakh emergency fund in 6 months.

– Avoid direct stocks, ULIPs, or endowment plans.

– Pay part car loan using yearly bonus or FD maturity.

– Consolidate mutual funds to 5–6 best schemes only.

– Avoid holding more than 1 savings account.

– Invest yearly bonus or incentives in retirement SIP or debt fund.

? Finally

– You are off to a great start. Your goals are clear and achievable.

– You have low debt, basic protection, and consistent investment habit.

– Now the focus must be on goal alignment, step-by-step review, and regular SIP growth.

– Involve a Certified Financial Planner to track each goal and adjust path yearly.

– This will ensure that both your retirement and your son’s future are well protected.

– Keep your plan simple, disciplined and long-term focused.

– You are building lasting security for your family. Keep going strong.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 08, 2025Hindi
Money
I am 39 year old, with 78000 in-hand monthly income after taxes. I invest 18k monthly in MF through SIP, 88K annually in NPS. I have 11 lakhs in LIC and about 20 lakhs in FD and RD. How much more do I need to invest to create retirement Corpus of 3 Cr by next 15-16 years.
Ans: You are already taking thoughtful steps.
Investing in SIP, NPS, LIC, and FDs shows good savings habit.
Aiming for Rs 3 crore retirement corpus by age 55 is bold and smart.
Let us now assess your plan from all angles.

? Retirement Corpus Target and Time Frame

– You are 39 now.
– You plan to retire at 55.
– So you have around 16 years left.
– Your retirement goal is Rs 3 crores.
– This is a solid and realistic target.
– But achieving it needs careful planning.

? Review of Your Current Investments

– You invest Rs 18,000 per month in mutual funds.
– That is Rs 2.16 lakhs per year.
– You invest Rs 88,000 yearly in NPS.
– You have Rs 11 lakhs in LIC policies.
– You also hold Rs 20 lakhs in FD and RD.
– That shows a conservative approach.
– A good mix but slightly FD-heavy.
– You need to increase equity exposure for long-term growth.

? Understanding Expected Growth from Current Investments

– Mutual funds can give long-term returns of 11%–13%.
– NPS has potential for 9%–10% in mixed options.
– LIC plans offer around 5%–6% return only.
– FDs and RDs give 6%–7% before tax.
– So, current asset mix is return-restrictive.
– You may fall short if you don’t increase equity exposure.

? How Much More Investment Is Needed?

– You are targeting Rs 3 crore in 16 years.
– At 11% growth, monthly investment needs to be higher.
– Current SIP is not enough alone.
– You need to add around Rs 12,000–14,000 more monthly.
– Or increase yearly lump sum when possible.
– Increase SIPs every year by 10%.
– Step-up SIP strategy works well for goal-based investing.

? Role of LIC in Retirement Portfolio

– LIC returns are very low.
– If these are traditional plans or endowments, surrender them.
– If ULIP or investment-cum-insurance policies, then also exit.
– Reinvest the amount into mutual funds.
– LIC plans don’t beat inflation.
– They are not wealth creators.
– They only give peace of mind, not growth.

? Suggested Portfolio Restructuring

– Move from FDs to mutual funds gradually.
– Keep 6–9 months’ expenses in FD or liquid funds.
– Rest of FD can be used in phased investment.
– Start STP (systematic transfer plan) into hybrid or equity funds.
– Avoid index funds.
– They do not manage downside.
– Index funds mirror market blindly.
– Active funds aim to outperform and manage volatility.
– That is critical for retirement planning.

? Avoid Direct Mutual Funds for This Goal

– You need support for rebalancing, reviews, and guidance.
– Direct funds offer no personalised help.
– No one tracks your goal or reminds you to adjust.
– Regular plans via MFD with CFP offer active handholding.
– They help in review, exit timing, taxation, and reallocation.
– That is worth far more than the small extra cost.

? Why FDs Are Not Enough for Retirement

– FD returns are below inflation after tax.
– For long-term goals, equity is better.
– Your Rs 20 lakh in FD will not grow fast.
– Use only Rs 3–4 lakhs as emergency reserve.
– Rest can be invested through hybrid or balanced funds.
– Start staggered SIPs or STPs from these funds.

? Importance of Equity in Long-Term Planning

– Retirement is a long-term goal.
– You must beat inflation and tax both.
– Equity offers best long-term returns.
– Conservative options like RD or LIC are not enough.
– Build your portfolio with large-cap, flexi-cap, and hybrid funds.
– Always choose actively managed funds with proven track record.
– Avoid low-performing or passive options.

? Role of NPS in Your Portfolio

– Your Rs 88,000 yearly NPS is good.
– Try to increase it to Rs 1.5 lakhs if possible.
– NPS offers tax benefit and low-cost equity exposure.
– But use only 25–30% for fixed income in NPS.
– Rest can go to equity allocation.
– Track NPS fund performance every year.

? Taxation and Exit Planning Later

– Equity mutual funds give LTCG benefits.
– Gains up to Rs 1.25 lakhs yearly are tax-free.
– Above that, taxed at 12.5%.
– STCG is taxed at 20%.
– Debt fund gains are taxed as per income slab.
– NPS withdrawal is partly taxable after retirement.
– So plan your retirement withdrawals smartly.

? Future SIP Strategy

– Increase SIP amount by 10% every year.
– This is called step-up SIP.
– Small increase yearly creates huge impact in long run.
– Combine SIP with lump sum when possible.
– Use bonuses and incentives for yearly top-ups.

? Monthly Budget Optimisation

– Your in-hand income is Rs 78,000.
– You invest Rs 18,000 per month.
– Try to increase that to Rs 25,000 in 1–2 years.
– Keep expenses under control.
– Avoid large EMI commitments now.
– Don’t lock money in real estate.
– It won’t help in retirement liquidity.

? Emergency and Risk Planning

– Keep emergency fund ready.
– Minimum Rs 1.5 to 2 lakhs in liquid form.
– Use sweep-in FDs or ultra-short debt funds.
– Ensure health insurance is active.
– Ensure term insurance covers at least Rs 1 crore.
– This protects family and retirement goals.

? Other Considerations for Retirement Planning

– Retirement is not just about corpus.
– It is about lifestyle, inflation, and health care.
– You must plan for 30+ years after retirement.
– So inflation-adjusted returns matter a lot.
– LIC and FDs alone can’t manage that.
– Equity is needed in proper balance.
– Review your portfolio every 12 months with CFP.

? Common Mistakes to Avoid

– Don’t stop SIPs when market falls.
– Don’t keep all money in FD or RD.
– Don’t buy endowment or pension policies.
– Don’t fall for one-time investment products.
– Don’t invest without a written goal and plan.
– Don’t chase highest return fund every year.

? Finally

– Your goal of Rs 3 crore is possible.
– You must increase SIP by Rs 12,000–14,000 more monthly.
– You can do this in phased manner.
– Avoid LIC and FD dependency.
– Use mutual funds with proper allocation.
– Work with Certified Financial Planner for best results.
– Review plan every year.
– Step-up SIPs and equity exposure are key drivers.
– Stay consistent. Stay disciplined.
– You are moving in the right direction.

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

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Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 08, 2025Hindi
Money
I am 40. Got 5 houses with rental income of around 1 lakh. Current values of the houses (in lakhs) 1. 95,00,000 2. 97,00,000 3. 80,00,000 4. 45,00,000 5. 40,00,000 I want to retire right away. With the same kind of monthly yield structure. My monthly expense is approx 25000 only. I have a 9 year old son whose education and future expenses shall be required to be maintained and I wish to travel abroad once a year for the rest of my life and want tension free monthly income while the inflation is taken care of in the future too (one of the main reasons to invest in property). I have around 20 lakhs worth of gold & about 5 lakh rupees in various Mutual Funds. Kindly help me allocate and decide the course of action. High priority would be monthly returns and adjusting inflation so that whatever I can buy now, I would be able to afford in the future too. Thanks in advance.
Ans: ? Understanding Your Present Assets

– You own 5 houses worth around Rs. 3.57 crores. That is a huge asset base.
– These give you Rs. 1 lakh monthly. That is 3.3% rental yield annually.
– You also hold Rs. 20 lakhs in gold and Rs. 5 lakhs in mutual funds.
– Monthly expenses are low at Rs. 25,000. That’s very good financial discipline.
– You wish to retire now, fund your child’s future, and travel yearly abroad.
– Your biggest concern is to maintain monthly income and beat inflation.
– This is a well-thought-out concern. Very valid and worth planning carefully.

? Assessing Rental Income for Monthly Needs

– Rs. 1 lakh income covers your Rs. 25,000 monthly costs very well now.
– But this leaves very little for your other goals like travel and education.
– Also, rent doesn’t always grow fast. Rental yield in India is often low.
– Rent increase is not always linked with inflation directly.
– Maintenance, taxes, and vacancy risks also reduce net rent income.
– Relying only on rental yield is risky for long-term retirement.
– You need backup sources of income for inflation-adjusted expenses.
– Consider slowly diversifying from property to financial assets.

? Challenges in Relying Solely on Real Estate

– Properties are illiquid. You can't sell quickly when money is needed.
– Real estate can’t provide monthly cash flow in an emergency.
– Value appreciation may be slow or stagnant in some years.
– Upkeep, legal issues, and tenant management can become stressful.
– Your goal is stress-free income. Property may not ensure that always.
– Also, you can’t split a flat and sell in parts when needed.
– For monthly inflation-beating income, diversification is needed.

? Gold Can Be Held but Not Relied Upon

– Gold worth Rs. 20 lakhs adds support to your portfolio.
– It can be held for long-term protection against inflation.
– But it doesn’t give you any regular income.
– You can’t use it to fund monthly lifestyle easily.
– Gold price is also volatile and driven by global events.
– It is better to keep gold as a safety asset, not income asset.

? Mutual Funds Must Be Increased

– You only have Rs. 5 lakhs in mutual funds. That is too low.
– You must build this up slowly over time.
– Mutual funds give flexibility, liquidity, and inflation-adjusted returns.
– You must choose actively managed funds with professional MFD and CFP support.
– Avoid index funds. They don’t manage downside risks actively.
– Actively managed funds have potential to outperform inflation better.
– Avoid direct funds also. Without guidance, it may hurt your results.
– Invest through a Certified Financial Planner using regular plan with MFD.
– This ensures tracking, rebalancing, and goal-based allocation.

? Suggested Asset Reallocation Strategy

– Keep two properties that give stable rental income.
– Sell one or two properties over the next 2–3 years.
– Use the proceeds to build a financial asset base.
– Keep Rs. 20–25 lakhs in safe, liquid funds for emergencies.
– Keep Rs. 75 lakhs to Rs. 1 crore in balanced and equity-oriented mutual funds.
– These can provide systematic withdrawals to cover monthly income.
– Also provide growth to beat inflation in the long term.
– Retain one house for personal use or legacy.
– This way you combine real estate comfort with financial freedom.

? Monthly Income Plan with Inflation Protection

– Use rent from 2 houses as fixed base income.
– Add SWP from mutual funds as monthly top-up.
– SWP means Systematic Withdrawal Plan.
– You can withdraw set amount monthly from funds.
– Equity funds grow with inflation. They preserve purchasing power.
– You can increase SWP yearly to match inflation rise.
– This gives you flexible, growing monthly income.
– You don’t have to worry about missing rent or delayed tenants.

? Planning for Your Son’s Education and Future

– Keep a separate mutual fund goal for child’s education.
– Use long-term equity mutual funds through SIP or STP.
– Rs. 15,000 monthly for 9–10 years can create strong corpus.
– Don’t touch this fund for monthly lifestyle. Keep it dedicated.
– Also create an emergency health corpus of Rs. 10–15 lakhs.
– These 2 buckets give safety and security to your family.

? Planning for Your Yearly International Travel

– Budget for international trip yearly. Maybe Rs. 3–4 lakhs.
– Create a dedicated fund for travel.
– Invest in low-risk balanced mutual funds or debt funds.
– Withdraw every year just before travel.
– Let the rest grow for next year’s trip.
– This avoids disturbing your monthly income or core funds.

? Medical and Life Protection Is Must

– Buy Rs. 25 lakhs health insurance for your family.
– Buy Rs. 1 crore term insurance till your son turns 25.
– This protects your family in case of medical or life risk.
– Don’t depend on real estate for emergency cash.
– Use insurance and emergency funds for such needs.

? Don’t Depend on Index or Direct Mutual Funds

– Index funds are passive. They copy the market blindly.
– They don’t protect during market crash.
– Your stage of life needs active protection and consistent growth.
– That comes from actively managed funds handled by professionals.
– Direct funds are risky without guidance.
– Regular funds through MFD with CFP ensure personal attention.
– You also get periodic reviews and rebalancing advice.

? Keep Liquidity, Simplicity and Flexibility

– Keep at least Rs. 10–15 lakhs in liquid mutual funds.
– This should be untouched. Use only in extreme emergency.
– Maintain simplicity. Don’t chase exotic products or risky options.
– Avoid investing in more real estate now.
– You already have enough property exposure.
– Now the focus should be financial freedom and mental peace.
– Don’t make money decisions that reduce flexibility.
– You need to access funds easily if required.

? Tax Planning Must Not Be Ignored

– Your mutual fund withdrawals will be taxed.
– LTCG above Rs. 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%. Plan your withdrawals smartly.
– Real estate sales also involve capital gains tax.
– Use exemptions if reinvesting in financial products.
– Consult your CFP for tax optimisation.
– Don’t avoid taxes. But reduce them legally and efficiently.

? How to Get Started on This Plan

– First, review which 2–3 properties are best to hold.
– Start sale process of 1–2 other properties over next 2 years.
– Don’t hurry. Get best price. Plan timeline smoothly.
– In parallel, open multiple mutual fund portfolios.
– Allocate for income, education, travel and emergencies.
– Begin with liquid and balanced funds.
– Slowly increase equity allocation through SIP or STP.
– Review every 6 months with your Certified Financial Planner.

? Finally

– You have created great wealth by 40. That’s rare and inspiring.
– Now your focus should shift to protecting and utilising it well.
– Rental income alone won’t secure your lifestyle long-term.
– You must diversify into flexible financial assets.
– Your goals are clear – monthly income, travel, child’s future.
– All these can be met with structured mutual fund planning.
– Avoid over-dependence on illiquid real estate and gold.
– Keep financial peace as your main aim now.
– You deserve a relaxed and tension-free life going forward.

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

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Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
As I am 59 year and my wife is 54 year i have one core amount My monthly expense is around 50000 rupees pl guide me restructure my amount for 30 year. I have no pension
Ans: Your question shows clarity and a strong mindset. Having Rs 1 crore at 59 is a good start. With structured planning, even without a pension, you can create a stable cash flow. Let’s work on it step-by-step and give you a full 360-degree solution.

? Understand the Key Retirement Challenge

– You are 59 and planning for 30 years.
– That means till age 89, you want funds to last.
– You spend Rs 50,000 per month now.
– That becomes Rs 6 lakh per year.
– Inflation will make future expenses higher.
– So, money should grow and not just lie idle.
– There’s no pension. So full dependency is on corpus.
– That means smart allocation is important.
– The goal is to avoid running out of money.

? Emergency Fund Is First Priority

– Keep at least 12 months’ expense in FD.
– That means Rs 6 lakh in bank FD or liquid fund.
– This is not for spending. Only for emergency.
– It creates peace of mind.
– It avoids panic during any health or family issue.

? Health Insurance Must Be Active and Strong

– Do you already have health insurance?
– At age 59, health cost can rise sharply.
– A good family floater plan is must.
– At least Rs 10 lakh sum insured is safe.
– Don’t depend on savings for hospital bills.
– Use health insurance to protect wealth.

? Understand Inflation Impact on Rs 1 Crore

– Today your expense is Rs 6 lakh per year.
– After 10 years it can become Rs 9.6 lakh per year.
– After 20 years it can cross Rs 15 lakh per year.
– Your Rs 1 crore cannot support this if lying idle.
– So growth is required through mutual funds.
– Only equity-linked funds can beat inflation.
– But don’t put 100% into equity. That’s risky.

? Ideal Asset Allocation for Retirement Corpus

– Asset allocation gives both safety and growth.
– You can follow a 30:70 ratio.
– 30% in equity mutual funds (for long term growth).
– 70% in safe instruments (for steady income).
– This will protect your money in market falls.
– It also gives better returns than FDs alone.

? Why Choose Actively Managed Mutual Funds

– Avoid index funds. They are not suitable for retirees.
– Index funds just copy the market. No protection.
– They don’t manage downside risks.
– Actively managed funds have expert strategies.
– They aim to reduce risk and maximise gain.
– This is very useful in your stage of life.

? Why Avoid Direct Funds and Prefer Regular

– You may think direct mutual funds give higher returns.
– But they don’t come with any professional help.
– Regular funds through a Certified Financial Planner are better.
– You get personalised review and portfolio guidance.
– Mistakes are avoided. Long term performance improves.
– It brings peace, confidence and ongoing support.

? Safe Income Options from Debt Allocation

– Debt portion (70%) can go in these options:

Short duration debt mutual funds

Conservative hybrid mutual funds

Post Office Monthly Income Scheme

Senior Citizens Savings Scheme
– These give monthly or quarterly income.
– The idea is to create regular payout.

? How to Get Monthly Cash Flow from Portfolio

– Use SWP (Systematic Withdrawal Plan) from debt mutual funds.
– Withdraw fixed amount monthly.
– This avoids touching principal in early years.
– Equity funds are kept untouched for 5 to 7 years.
– After 7 years, rebalance as needed.
– This ensures corpus stays long term.

? Withdraw Only What You Need – Don’t Overspend

– Withdraw only Rs 50,000 monthly.
– Keep tracking inflation once in 3 years.
– Increase monthly withdrawal only when needed.
– This avoids early depletion of funds.
– Don’t withdraw lump sum unless unavoidable.

? Rebalancing Every 2 Years Is Important

– Portfolio needs review every 2 years.
– Equity may grow more than expected.
– Then book profits and move to debt again.
– Or if equity falls, wait for it to recover.
– Don’t make panic moves. Be guided by a Certified Financial Planner.

? Taxation Rules on Mutual Fund Withdrawals

– For equity mutual funds:

LTCG above Rs 1.25 lakh is taxed at 12.5%

STCG is taxed at 20%
– For debt mutual funds:

Gains are taxed as per income slab.
– Withdraw in small parts using SWP.
– This reduces tax outgo every year.

? Don’t Mix Insurance with Investment

– If you have any ULIP, traditional plan or endowment plan,
– They give poor return and high charges.
– They are not useful at retirement stage.
– Surrender such plans and reinvest in mutual funds.
– This gives better liquidity and higher long-term return.

? Avoid Real Estate as Investment Tool

– Don’t use Rs 1 crore to buy property now.
– Real estate is illiquid and hard to sell in emergencies.
– It has high maintenance and no regular cash flow.
– Use mutual funds for flexibility and inflation beating returns.

? Keep Nomination and Will in Place

– Update nomination in all investments and bank accounts.
– Write a simple Will.
– Appoint spouse or trusted person as nominee and executor.
– This avoids confusion or legal problem for family later.

? Keep Money Handling Simple and Safe

– Don’t keep large funds in savings account.
– Don’t try F&O trading or stock picking.
– Don’t give large loans to family or friends.
– Stay away from quick rich schemes.
– Protect your wealth through simple, steady options.

? Involve Your Spouse in Financial Planning

– Share all investment details with your wife.
– Train her in basic bank and mutual fund work.
– Create joint accounts for easy access.
– Involve her in every decision.
– This builds family-level financial safety.

? Slowly Plan Succession to Your Children

– After 10 years, think about passing wealth to children.
– Teach them value of money and saving.
– Slowly gift small portions if needed.
– Keep most in your name until you feel safe.
– Don’t give full control too early.

? Use a Certified Financial Planner for Support

– A Certified Financial Planner can guide you fully.
– From fund selection to rebalancing to withdrawal planning.
– Also for tax management and succession plan.
– Their support avoids confusion and delays.
– It brings confidence and control over your retirement journey.

? Final Insights

– You have a good starting point with Rs 1 crore.
– With right structure, it can last 30 years or more.
– Don't be afraid of mutual funds. Use them with plan.
– Avoid direct funds. Avoid index funds.
– Stick to a steady withdrawal method.
– Involve your spouse and keep things simple.
– Don’t try to maximise return. Focus on peace and steady income.

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

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Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
Dear Sir, i am 48 years old working with a pvt company my monthly expenses are ard 50,000 INR - how much will i need at the age of 58 ie my retirement
Ans: You’re already thinking about retirement at 48. That’s a wise and timely step.
Planning early gives you more control. You can build a worry-free and peaceful retired life.

Below is a complete and in-depth answer, keeping in mind your lifestyle and future needs.

? First Understand the Role of Inflation
– Inflation reduces the value of money every year.
– Rs.50,000 today may not be enough after 10 years.
– Expenses will double roughly in 10–12 years.
– So, you must plan not for today’s cost, but future cost.
– This is the most common mistake in retirement planning.

? Know What You Really Need Monthly After Retirement
– Today your monthly cost is Rs.50,000.
– At 58, it may become Rs.1 lakh or more per month.
– This assumes average inflation of around 7–8%.
– So, plan for future monthly need, not just today’s.
– This helps you stay prepared and stress-free later.

? Work Out Retirement Corpus to Cover Expenses for Life
– You may live till age 85 or even 90.
– So, you need 30+ years of income after retirement.
– Your retirement corpus should generate income for all these years.
– It must beat inflation and yet be safe.
– You must not outlive your money.
– This is the core goal of retirement planning.

? Don’t Depend on EPF or PPF Alone
– These will not be enough on their own.
– Their return is fixed and taxable.
– EPF corpus may last only few years.
– PPF is too small and cannot give monthly income.
– So, you need a bigger, balanced retirement corpus.
– It should combine safety, income, and growth.

? Estimate the Corpus Needed at Retirement
– You may need around Rs.2–3 crore minimum by age 58.
– This depends on expected expenses, lifestyle, health, and inflation.
– If expenses grow faster, you will need more corpus.
– Better to overestimate than underestimate.
– This amount will generate income through Systematic Withdrawal Plan (SWP).

? SWP is Better Than Pension or Annuity
– Don’t go for annuity or pension plans.
– They offer low returns.
– No inflation protection and no flexibility.
– In SWP, you withdraw monthly from mutual fund.
– Your money stays invested and grows.
– You keep full control and ownership of the corpus.

? Stay Away from Index Funds
– Index funds don’t protect in falling markets.
– They just follow the market blindly.
– No professional selection of stocks.
– Active funds offer better research and management.
– They also adjust to market cycles better.
– For long-term needs like retirement, active funds work best.

? Avoid Direct Mutual Funds – Prefer Regular Plans with Guidance
– Direct plans give no support or advice.
– You may choose wrong fund or asset mix.
– Regular plans through Certified Financial Planner-backed MFD is safer.
– You get personalised reviews, rebalancing, and alerts.
– In retirement, peace matters more than tiny cost saving.

? Divide the Retirement Corpus into Two Buckets
– Income Bucket gives monthly income from age 58.
– Growth Bucket grows till you need it later.
– This method protects your future years.
– It also reduces stress on income funds.
– It helps refill the income bucket later.

? How Much Monthly Income Will You Need After Retirement?
– At 58, your Rs.50,000 expense may become Rs.1 lakh.
– After 70, it may rise to Rs.1.5 lakh monthly.
– You must plan to meet these increases.
– Otherwise, your money will fall short too early.
– Plan for rising expenses due to inflation.

? Include Health Insurance in Your Plan
– After 60, medical costs will be high.
– No employer will cover you after retirement.
– Buy a large, family floater plan today.
– Keep increasing sum insured every 2–3 years.
– Don’t depend only on savings for medical cost.

? Don’t Keep All Money in Fixed Deposit
– FD returns are taxable and low.
– FD doesn’t beat inflation.
– Interest may reduce in future.
– Also, no flexibility in withdrawals.
– Instead, use a mix of funds for income and growth.

? Use STP to Move Lumpsum Slowly into Growth Funds
– Don’t invest full amount at once into equity.
– Start with liquid fund.
– Then use Systematic Transfer Plan to shift into equity funds.
– This gives better cost averaging and safety.
– It helps enter the market without worry.

? Avoid Real Estate for Retirement Planning
– Real estate has low rental yield.
– Buying and selling is difficult.
– No monthly income unless tenant is found.
– Maintenance costs are high.
– Better to keep liquid, safe investments for retirement.

? Use Regular Mutual Funds with Active Management
– These are better than index or direct funds.
– You get better service, expert fund management.
– Also, annual reviews and tracking support.
– Good for people who don’t want to monitor daily.
– It also gives family members peace of mind.

? Build Emergency Fund Separately
– Keep Rs.10–15 lakh in liquid funds.
– This should not be part of retirement corpus.
– Use for emergency or medical need.
– This prevents disturbance to retirement investments.

? Involve Family in Planning
– Discuss your retirement plan with spouse.
– Make them aware of investments and documents.
– Name them as nominee or joint holder.
– This avoids confusion in your absence.

? Avoid Insurance-Cum-Investment Plans
– ULIPs or traditional insurance give poor return.
– They lock money and have hidden charges.
– If you have such policies, surrender them.
– Reinvest in mutual funds for better transparency and return.
– Separate insurance and investment always.

? Plan Retirement in Phases
– Phase 1: Age 58 to 70 – active life, travel, hobbies.
– Phase 2: Age 70 to 80 – lower expenses, medical cost rises.
– Phase 3: Age 80+ – mostly health and care cost.
– Design investment accordingly.
– More equity in early phase, more debt later.

? Final Insights
– You are taking the right step now.
– Planning at 48 gives you time to build.
– Start investing monthly in mutual funds.
– Use equity, hybrid, and conservative funds.
– At retirement, use SWP for monthly income.
– Avoid annuity, index funds, direct funds, real estate.
– Choose regular funds with Certified Financial Planner help.
– Build emergency fund and health insurance.
– Review every year. Involve family. Stay disciplined.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Asked by Anonymous - Jul 07, 2025Hindi
Money
I am 40 years old. I have 50 lacs in PF and 30lacs in PPF. I have a mutual fund portfolio of 65 lacs, a HL with 50 lac outstanding, a PL with 13 lacs outstanding and annual income of 50 lacs. daughter in primary school. How to plan for my retirement and daughter's future. MF portfolio is equally divided in flexicap, smallcap, midcap, large &midcap funds. I think I will need 15cr corpus to maintain lifestyle post retirement.
Ans: It reflects clarity, maturity, and a forward-thinking approach.
At 40, you have built strong assets already. That gives you a solid head start.

Now, let’s structure a full 360-degree plan.
We will cover retirement, daughter’s future, and loan handling – all in detail.

? Analysing your current financial base

– You have Rs. 50 lakh in Provident Fund (PF)
– Rs. 30 lakh in Public Provident Fund (PPF)
– Rs. 65 lakh in Mutual Funds spread across various categories
– Total investable assets = Rs. 1.45 crore

– You also have two active loans:
– Rs. 50 lakh outstanding home loan
– Rs. 13 lakh personal loan

– Annual income is Rs. 50 lakh, which is strong
– Your daughter is in primary school, so education goals are long-term

– You are aiming for Rs. 15 crore retirement corpus
– That is a realistic goal, considering inflation and lifestyle

? Understanding your cashflow and affordability

– With Rs. 50 lakh yearly income, monthly take-home can be estimated around Rs. 3 lakh+
– EMI for personal loan and home loan will be a big part of this
– Let's assume EMI for home loan is around Rs. 45,000–50,000
– Personal loan EMI can be approx. Rs. 30,000–40,000 depending on tenure

– You must aim to keep EMIs below 35% of your take-home
– That way, you maintain liquidity and continue investing

– Your net surplus after EMIs and expenses will define future investments
– This surplus needs smart planning with discipline

? Optimising your debt strategy for better efficiency

– The personal loan is unsecured and has high interest
– First target should be to prepay or close this loan soon
– Use bonuses or windfall income to bring down this loan

– Do not rush to close home loan now
– It has tax benefits on both interest and principal
– Continue claiming those till retirement planning demands closure

– Home loan EMI is usually manageable with your income level
– But personal loan must not stay beyond next 12–18 months

? Reviewing and strengthening your mutual fund portfolio

– You have invested well in mutual funds
– Rs. 65 lakh corpus across five fund types is well-distributed

– However, equal allocation may not suit all phases of life
– Smallcap and midcap funds carry more risk
– In your 40s, you should slightly reduce smallcap share

– Flexicap and large & midcap can offer good balance
– They adjust better in market ups and downs

– At this stage, consider 40% in flexicap and large-midcap
– 30% in midcap
– 20% in smallcap
– 10% in conservative hybrid or equity savings type

– This helps reduce downside risk and improves stability

– Stay with actively managed funds only
– Do not move to index funds at this stage

– Index funds do not provide downside protection
– They mirror markets and fall deep during crashes
– Active funds manage risks better and offer long-term consistency

? Direct funds vs Regular funds – the real truth

– Many people chase direct plans to save commission
– But that comes with risk of wrong fund selection

– Direct funds give no personal advice or guidance
– In case of market crash, you’re alone with no direction

– With regular plans through a Certified Financial Planner, you get many benefits
– Proper asset allocation, timely rebalancing, emotional guidance during volatility

– In long run, this help brings better wealth outcomes than saved commissions

– Direct plan mistakes often cost more than what you save

– At this stage of wealth building, choose safety over cost-cutting
– Stick to regular plans via trusted MFD backed by CFP

? Retirement corpus goal – building a Rs. 15 crore base

– You aim to build Rs. 15 crore for retirement
– That’s about 15–20 years away depending on target age

– With Rs. 1.45 crore base and high income, the goal is very possible

– You must consistently invest 30–40% of annual income
– Increase SIPs by 10–15% each year
– Avoid premature withdrawals from mutual funds

– Do not disturb PF or PPF unless very urgent
– Let them continue compounding safely for 15–20 years

– PF and PPF will form the stable part of your retirement
– Mutual funds will give the high-growth component

– Avoid overexposure to smallcap during pre-retirement years
– Gradually shift towards hybrid and largecap after 50

– Review portfolio every year with your Certified Financial Planner

– Stay invested through market cycles
– Market falls are temporary, but long-term returns are real

? Tax planning along with investment planning

– Use mutual funds’ new tax rules to plan exits wisely
– Equity mutual funds:
– LTCG above Rs. 1.25 lakh per year taxed at 12.5%
– STCG taxed at 20%

– Debt mutual funds:
– Both STCG and LTCG taxed as per income tax slab

– Avoid frequent switching between equity and debt
– Let your CFP plan the withdrawals in tax-efficient manner

– PPF interest is tax-free
– PF is also tax-free if withdrawn after retirement

– Make use of 80C, 80D, and other deductions fully
– Avoid tax-saving ULIPs or insurance products for investment

– Focus only on mutual funds, PF, and PPF for long-term goals

? Planning your daughter’s future smartly

– You still have 10–12 years for higher education expenses
– That gives you a good compounding runway

– Allocate part of mutual fund corpus for this goal
– Create a separate SIP for her education

– Choose diversified equity and hybrid funds for this
– Avoid locking funds in insurance-linked education plans

– ULIPs or endowment plans give poor returns
– They do not offer enough growth for future costs

– Mutual funds give better flexibility and liquidity
– After 5–6 years, you may shift from equity to balanced fund

– This will protect the fund from sudden market fall closer to goal

– Also plan for hostel, coaching, and other costs
– Keep a small emergency reserve for her education too

– Always track the goal corpus once in 6 months

? Do not mix insurance and investment

– If you hold LIC, ULIP, or endowment plans for investment
– Review their returns and surrender if returns are below 6%
– Shift the surrender value to mutual funds for better performance

– Term insurance is the only insurance you need
– Take enough term cover to protect your family in your absence

– Do not mix long-term goals with traditional policies
– They block liquidity and give poor returns

? Emergency fund and health protection

– Maintain 6–9 months of household expenses in a liquid mutual fund
– This will protect your SIPs in case of job loss or health issue

– Also take good family health insurance policy
– Do not depend only on employer-provided policy

– Medical inflation is rising fast
– Private insurance gives flexibility and better control

– Add critical illness cover for more protection

? Wealth transfer and nomination planning

– Update nominations on PF, PPF, mutual funds, and bank accounts
– Add joint holders where possible

– Create a Will to ensure smooth transfer of wealth
– Add a letter of instruction for your spouse and daughter

– These small steps protect your family in unexpected situations

? Finally

– You are in a powerful financial position
– Your income, assets, and vision are aligned

– Stay consistent with investments
– Prioritise goals with clear buckets: retirement, education, and safety

– Do not overcomplicate your strategy
– Stay invested, review yearly, and rebalance when needed

– Avoid index funds and direct funds
– They look cheap but carry hidden risks

– Trust a Certified Financial Planner for long-term wealth peace
– You have built the foundation. Now is the time to build the structure

– Stay disciplined. Future will take care of itself

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
My sister is 25 yr old and earned 30k per month. She want to make investment for gold of her marriage that will be in end of this 2025. What are the good investment for her?
Ans: Your sister’s early thought towards saving is truly great.
Planning ahead for a personal goal like gold for her wedding shows maturity.

She still has about 1.5 years.
This time can be well used to plan better returns.

She earns Rs. 30,000 per month.
Let’s try to allocate her income wisely towards her short-term goal.

? Understanding the Goal First

– Her goal is to buy gold before December 2025.
– It is a short-term and non-negotiable goal.
– The value of gold fluctuates.
– Gold prices generally rise over time.
– She should avoid taking too much risk.
– Liquidity is also important.

? Avoid Investing in Equity-Based Options

– She has only around 17 months left.
– Equity is volatile in the short term.
– It may not give stable returns by 2025.
– A market correction can spoil the plan.
– For short goals, safety is more important.
– So, equity mutual funds are not suitable.

? Choose Safe and Short-Term Oriented Options

She should go with low-risk and liquid investments:

– Bank recurring deposits for 12-15 months.
– Debt mutual funds with low duration.
– Post office monthly income schemes.
– Fixed deposits with flexible closure option.

These options offer:

– Capital protection.
– Predictable return.
– Easy liquidity before marriage.

? SIP in Low Duration Debt Funds

– Monthly SIP of Rs. 5,000 to Rs. 10,000.
– Choose low duration or ultra short-term funds.
– These are better than bank RDs in taxation.
– After indexation, returns may be tax-efficient.
– But gains will be taxed as per her income slab.
– She can redeem anytime before December 2025.

? Target Maturity Funds Can Also Help

– She may look at short-term target maturity funds.
– Duration should match her goal year.
– These funds invest in government and PSU bonds.
– No equity exposure, so less risk.
– Ideal if she wants better than FD returns.
– Redemption at maturity avoids exit load.

? Importance of Monthly Discipline

– If she saves Rs. 10,000 monthly, in 17 months, she’ll save Rs. 1.7 lakh.
– With modest returns, corpus may touch Rs. 1.8 to Rs. 1.85 lakh.
– This can help her buy gold comfortably.

? Don’t Buy Physical Gold Too Early

– Physical gold involves making charges.
– Prices can drop after she buys.
– Better to invest and buy closer to date.
– Avoid gold jewellery schemes with jewellers.
– They usually offer low or no returns.

? Digital Gold or Gold ETF Is Not Needed

– Digital gold has storage and trustee risk.
– Not regulated fully like mutual funds.
– Gold ETFs need Demat account.
– Not ideal for someone new to investing.

Also, ETF is like an index option.
As per current guidance, she should prefer actively managed funds.

? Should She Go for Direct Mutual Funds?

– Direct funds skip distributor commission.
– But they don’t offer advice or support.
– Wrong selection can impact her goal.
– Regular funds via MFD with CFP ensure right guidance.
– CFP helps her with the best fit for her timeline.
– Long-term cost of a wrong fund is high.

? Insurance Products Are Not Needed

– Insurance is not for investment.
– ULIPs and money-back plans offer poor returns.
– She should avoid LIC endowment policies.
– If she holds any such plans, she should surrender.
– Reinvest the proceeds in suitable debt mutual funds.

? Avoid Keeping Cash in Savings Account

– Savings account gives only 2.5% to 3% returns.
– Inflation will eat the value of her savings.
– She should move the idle funds into short-term debt fund.
– Auto-debit SIP makes saving automatic and easy.

? Use Emergency Fund Separately

– Marriage gold saving is a specific goal.
– She must not mix it with emergency fund.
– At least 3 months of income should be kept separately.
– This can be in liquid mutual fund or bank RD.

? Keep Reviewing the Goal Every 3 Months

– Prices of gold can change.
– Market returns may vary slightly.
– She should check the progress quarterly.
– Increase SIP if prices go too high.
– Don’t stop SIPs midway for any reason.

? Should She Consider Gold Mutual Funds?

– Gold funds mirror gold prices.
– No capital protection.
– Value may fall during redemption.
– She may not get the required quantity of gold.
– These are better for long-term diversification.
– Not suited for a short-term marriage goal.

? Focus on Safety More Than Return

– This is not the time to take high risk.
– Earning 6-7% return is enough now.
– Capital loss will hurt the goal.
– Her confidence in investing may go down.
– Better to reach the target safely.

? Final Insights

– Your sister is planning wisely at a young age.
– Keep the plan simple and goal-specific.
– Short-term debt funds are the best match.
– Regular SIP builds discipline and focus.
– Avoid equity and complex options now.
– Don’t choose direct funds or ULIPs.
– Stay in safe assets and track progress.
– Her smartness will surely shine at her wedding.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9974 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2025

Money
i am 21 year old and i got job salary is 20k but in hand is 18000 then how to manage the money and get a early retirement planning
Ans: You’ve taken the first step early, and that itself is a big achievement.
Starting at 21 gives you a rare advantage. Even small efforts now can lead to big gains later.
Let's walk through how you can create financial discipline and aim for early retirement.

? Build your foundation with expenses tracking

Track every rupee for the next 3 months.

Categorise into needs, wants, and wasteful spends.

You must know where your Rs 18,000 goes monthly.

Use apps or a notebook, whichever is easier.

Cut anything not essential. Small leaks drain big ships.

? Control lifestyle inflation from day one

Don’t upgrade lifestyle just because you have income.

Stay frugal while you are building habits.

Learn to say no to peer pressure spends.

Delay big expenses like phone upgrades or gadgets.

Budget before every spend, especially weekends.

? Maintain a simple budget: 50:30:20 structure

Keep 50% for needs – food, transport, mobile, etc.

Limit 30% to wants – entertainment, dine-outs, gifts.

Allocate 20% towards savings and investments.

At Rs 18,000 take-home, aim to save Rs 3,600 monthly.

The earlier you fix this ratio, the smoother your path.

? Build an emergency fund before you start investing

First, save up Rs 25,000 to Rs 30,000 as emergency buffer.

Keep it in a high-interest FD or savings account.

Don’t invest until you build this cushion.

This prevents you from withdrawing investments in emergencies.

? Don’t rush to real estate or flat purchases

Real estate is costly, illiquid, and not ideal for beginners.

Maintenance, property tax, paperwork, all add pressure.

Better to rent in early years and invest savings for compounding.

Owning flat too early can block your future choices.

? Learn to say no to investment-cum-insurance policies

ULIPs and endowments will tempt you with big returns.

But they lock money, give poor returns, and have high costs.

Avoid LIC or any insurance policies with investment parts.

If already taken, plan to surrender and shift to mutual funds.

? Start a SIP in mutual funds (regular plan via MFD with CFP)

Begin with Rs 1,000 to Rs 2,000 per month in equity mutual funds.

Go for regular plans through an MFD who holds CFP credentials.

Avoid direct plans unless you are trained to track and rebalance.

Regular plans offer tracking, reviews, and human support.

? Avoid index funds and ETFs

Index funds are passive. They copy market without beating it.

In long run, actively managed funds can beat index returns.

Skilled fund managers adapt to market changes faster.

Index funds do not suit early-stage investors needing handholding.

? Invest through SIPs for long term

Continue monthly SIPs for next 15 to 20 years.

Never stop SIPs during market down cycles.

SIPs use volatility to your benefit.

Invest consistently, not occasionally.

? Don’t forget to increase your SIP each year

When your salary grows, increase SIP too.

Aim to raise SIP by 10% every year.

Start small but stay regular and scalable.

Early start + increasing SIP = powerful wealth creation.

? Invest in equity for long term, not short term

Early retirement needs wealth, not just income.

Only equity mutual funds can beat inflation long-term.

Bank FDs or gold won’t create enough growth.

Stay invested for 15+ years for true compounding.

? Track tax implications when you grow

As income increases, use tax-saving options wisely.

ELSS funds are good if locked for 3 years.

PPF is safe and tax-free but long-term locked.

Use 80C deductions smartly, not emotionally.

? Learn financial literacy step-by-step

Read beginner books on personal finance.

Watch YouTube content by certified planners (not random influencers).

Avoid shortcuts and get-rich schemes.

Learn about risk before choosing any product.

? Focus more on skill growth than salary jumps

Improve communication, software, and team skills.

Your income decides your saving capacity.

Build side income with your passion over time.

Use any freelance, blog, or course skill to earn more.

? Say no to credit cards and EMIs

Don’t use credit cards in early years.

Avoid EMIs for gadgets, bikes, or personal loans.

Live below your means, not just within means.

Save before you spend. Don’t spend before saving.

? Review finances yearly with professional guidance

Once you hit Rs 25,000+ monthly salary, review plan with CFP.

A certified financial planner gives you a holistic view.

They adjust asset allocation, goal planning, and retirement routes.

Don’t trust friends or social media advice blindly.

? Prepare mental habits for early retirement

Early retirement means high self-discipline.

Practice goal-setting and money journaling.

Stay consistent even if results are slow.

Wealth builds slowly, then all at once.

Keep health and learning as parallel goals.

? Stay away from FOMO and peer pressure

Avoid FOMO when friends buy bikes, travel, or upgrade phones.

You are building future freedom, not weekend enjoyment.

Peace later is better than thrills now.

Patience is the biggest investing tool.

? Your progress over next 5 years

Emergency fund built within 6 months.

SIPs continue and increase with salary.

Equity mutual funds cross Rs 1 lakh in 3 years.

Financial literacy goes up with practice.

No loans, no debts, no regrets.

? Don’t stop learning about money

Read financial blogs or trusted YouTube channels.

Keep tracking your net worth every 6 months.

Share your learning with family members too.

Money habits become stronger with awareness.

? Build long term goals with time

Create a goal list: retirement, home, car, kids, travel.

Assign timelines and amount needed for each.

Discuss with a CFP to align investments to each goal.

Don't mix goals. Keep buckets separate for clarity.

? Avoid risky trends like crypto and trading

Crypto, day trading, or forex trading are not wealth creators.

They are addictive and full of losses for beginners.

No CFP will recommend those for long-term growth.

Stick to regulated, long-term trusted assets.

? Use automation to avoid missing SIPs

Set ECS or auto-debit for SIPs.

This prevents emotional decisions every month.

Automate savings, not just expenses.

Discipline gives results, not emotions.

? Consider health insurance by age 25

As salary improves, get a base health insurance.

This prevents wealth from getting wiped in emergencies.

Don’t depend only on employer coverage.

Individual policy is future-proof and tax-efficient.

? Enjoy the process, don’t rush outcomes

Wealth creation is slow and steady.

Consistency beats intensity in personal finance.

Early retirement is realistic if you stay focused.

Keep learning, saving, investing, reviewing every year.

? Finally

You have made a very smart start.

Most people realise this in their 30s.

Stay consistent with small actions.

Avoid bad financial products and hype.

Aim for freedom, not only money.

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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