Im 39, father of 2 yr girl baby, started investing SSY from 2023 , MF INVESTMENT OF 163000 bought kishan vikas 2 lakh started RD from Apr 25 with monthly ecs of 10k. Started lic endowment @ Apr 2019 sum assured 35 lakh fir 26 years doing sip on PPFAS Flexicap 2000 sip UTI Nifty 50 3000 nippon largecap 1000 motilal midcap 1000 is this good for long term growrh child education & marriage , am i going in right direction
Ans: You have taken strong first steps. Starting early, being consistent, and having a clear purpose like child education and marriage are very important. Let us go through your situation from a full 360-degree view. This way you will know what’s going right and what needs change.
Your Current Profile at a Glance
Age: 39
Father of a 2-year-old girl
Started Sukanya Samriddhi Yojana (SSY) in 2023
Mutual Fund investment: Rs?1,63,000 (current value or total invested, not clear)
Kisan Vikas Patra: Rs?2,00,000
New RD: Rs?10,000 per month from April 2025
LIC Endowment: Started in April 2019
Sum assured: Rs?35 lakh
Tenure: 26 years
SIPs running:
Rs?2,000 in PPFAS Flexicap
Rs?3,000 in UTI Nifty 50
Rs?1,000 in Nippon Large Cap
Rs?1,000 in Motilal Midcap
Now let us assess each part carefully with an aim for long-term growth, child education, and marriage.
Assessment of SSY Investment
SSY is a strong option for girl child
Government-backed, tax-free interest
Invest till child is 15, withdraw at 21
Ideal for safe education or marriage funding
However:
Interest rate is not fixed
Currently around 8%
May not beat inflation always
Suggestion:
Keep investing till full limit every year (Rs?1.5 lakh per year)
Use this only for one goal: either education or marriage
For second goal, build corpus through mutual funds
Analysis of Mutual Fund Portfolio
You are investing across 4 mutual funds:
PPFAS Flexicap – Rs?2,000 SIP
UTI Nifty 50 – Rs?3,000 SIP
Nippon Large Cap – Rs?1,000 SIP
Motilal Midcap – Rs?1,000 SIP
Let us assess this mix carefully.
PPFAS Flexicap:
Flexicap funds give freedom to move between large, mid, and small cap
Good for long term and wealth creation
Your SIP here is useful
UTI Nifty 50:
This is an index fund
It only mirrors Nifty 50, no flexibility
Fails to protect during market crash
Gives no scope for active decision-making by fund manager
Nippon Large Cap and Motilal Midcap:
Large cap adds stability
Mid cap brings long-term growth
Together they give diversification
However:
Your investment is small and scattered
SIP amount is very low for long-term child goals
Rs?7,000 monthly SIP won’t build large enough corpus alone
More important point:
Avoid index funds like UTI Nifty 50
They don’t offer downside protection
They do not outperform actively managed funds in tough markets
Better to invest in active mutual funds through regular plans
Work with a Certified Financial Planner and MFD for guidance
Regular plans offer full tracking, review, and guidance
Direct mutual funds lack support.
If you invest directly, there’s no expert monitoring.
Returns may suffer due to wrong fund choice or market timing.
Stick to regular plans and review annually with a CFP.
LIC Endowment Policy Review
You mentioned a LIC endowment plan:
Started April 2019
Rs?35 lakh sum assured
Duration: 26 years
These types of policies are not ideal.
They mix investment and insurance.
They give poor returns (around 4% to 5% yearly).
They block your money for long time.
They lack flexibility and liquidity.
Suggestion:
Exit after 5 years, check surrender value
Use surrender amount in mutual fund or SSY
For insurance, take term insurance separately
Get coverage of Rs?1 crore or more
Keep insurance and investment separate always
Kisan Vikas Patra Investment
You have invested Rs?2 lakh in KVP.
Low risk, government-backed
Doubles your money in around 10 years
But low post-tax return
Not suitable for long-term wealth building
Better suited for short-term savings
Suggestion:
Don’t increase allocation to KVP
After maturity, shift this to mutual funds
Recurring Deposit Plan
You started RD of Rs?10,000/month from April 2025.
Useful for short-term needs
Low returns after tax
Doesn’t beat inflation
Suggestion:
Use RD for short-term goals only
Do not use for child education or marriage
After goal is reached, move funds into SIP
Ideal Plan for Child Education and Marriage
You have 2 clear goals:
Child’s education (age 18-22)
Marriage (age 24-26)
You have 15-20 years for both.
This is long enough to build corpus through equity mutual funds.
Ideal investment plan going forward:
Step up SIPs to Rs?15,000 per month
Allocate to 3–4 actively managed funds
Suggested mix:
Flexi-cap
Large & mid-cap
Mid-cap
Aggressive hybrid
Avoid index funds.
Avoid direct funds.
Invest through Certified Financial Planner.
Work with MFD + CFP to track annually.
They will switch funds when needed.
This ensures consistency and long-term growth.
Term Insurance and Health Cover
You did not mention term plan or health insurance.
Immediate action needed:
Take term insurance for Rs?1.5 crore or more
Keep tenure till child turns 25
Buy separate health cover for family
Minimum Rs?10 lakh floater cover
Add super top-up of Rs?10 lakh
Never depend only on company insurance.
These covers are essential for family security.
Build Emergency Fund
You did not mention any emergency fund.
Plan:
Save 6 months of expenses in liquid fund
Emergency fund is not for investing
Use only for job loss or medical shock
Ideal amount: Rs?3–4 lakh minimum
Build this in 3–4 months
Retirement Planning Angle
You are 39 now.
Retirement is 18–20 years away.
Start investing at least Rs?10,000/month for retirement now.
This should be in a different SIP, not mixed with child goals.
You need separate funds for retirement.
You cannot depend on children or government.
Start early to gain compounding.
Taxation Understanding for Mutual Funds
Equity fund rules:
LTCG above Rs?1.25 lakh taxed at 12.5%
STCG taxed at 20%
Debt fund rules:
LTCG and STCG taxed as per income slab
Plan redemption smartly with CFP support.
Review tax impact every year before withdrawal.
Finally
You are on the right path but need direction.
Your intentions are good.
But current investments need correction and structure.
Key actions now:
Increase SIPs to Rs?15,000–20,000 monthly
Avoid index funds and direct mutual funds
Exit LIC endowment policy after 5 years
Get term and health insurance
Build emergency fund
Allocate investments goal-wise (child education, marriage, retirement)
Review funds yearly with Certified Financial Planner
Don't over-depend on RDs, KVPs, or real estate
Consistency with discipline will help you succeed.
You still have 15–18 years to build wealth.
Use this time wisely with the right plan.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment