Hi, I am a single mother abt 35 yrs age and earning approx 75k per month. I can save only approx 30k per month currently. I wish to start a daycare/creche services of my own. How much investment would be required for it and should I choose any franchise to go ahead with it? Is there any pre-requisites for it? I am not much of social person or easy to get friendly with kind of person, will that be a negative point if I go ahead with my plan? However I am very fond of children and love them. What would be the expected return from such business ot staying in service would be wiser? Kindly guide.

Ans: You can do both, but it would be better to get a franchise of a large chain as the systems , processes and controls would be well defined, and brand building will not be on your head.

Ans: I am sure you have a pretty good track record since you have managed to run a pre-school for 10 years. Ideally you should target friends, family and extended network with money and interest in this space as potential investors as they know you personally and professionally. Plus they can also help in other ways- getting you teachers, managing the local environment, popularising the school in your catchment areas, perhaps even come in as co-founder looking after specific activities. Pl also consult local CAs and financial consultants who can help organise debt financing.

Ans: Given your financial situation and goals, here's a suggested investment plan:

Emergency Fund: Start by building an emergency fund equivalent to 6-12 months of your living expenses. Keep this fund in a liquid and easily accessible account like a savings account or a short-term fixed deposit.

Insurance: Ensure you have adequate life and health insurance coverage. Given your responsibilities as a single mother, having a term insurance plan can provide financial security for your child's future.

Investment in Child's Education: Since you already have a child education policy and PPF, consider adding an equity-oriented mutual fund to potentially earn higher returns for your child's education expenses.

Retirement Planning: Start investing in retirement-focused mutual funds or retirement plans. Given your age, investing in equity-oriented retirement funds can provide good returns over the long term.

Real Estate: Since you own two apartments, consider the rental income from one apartment as a source of passive income. Regularly review the rental income and expenses to ensure it aligns with your financial goals.

Additional Investments:

Mutual Funds: Start a monthly SIP in diversified equity funds for long-term wealth creation.
PPF: Continue investing in PPF for tax benefits and fixed returns.
Debt Funds: Consider investing in debt funds for stability and regular income.
Gold or Gold Funds: Allocate a small portion to gold or gold funds for diversification and hedging against inflation.
Financial Planning: Consult a financial advisor to create a personalized financial plan tailored to your needs, goals, and risk tolerance. A professional can help you prioritize investments, optimize tax savings, and achieve your financial objectives.

Remember to regularly review and adjust your investment plan based on changing financial goals, market conditions, and life circumstances. Starting early and maintaining discipline in your investment approach can help you achieve financial security and provide a comfortable future for you and your child.

Ans: You are just 33 and already taking smart steps.
Starting from zero and reaching this point shows your strength.
That effort deserves appreciation.

Now let us assess everything with a 360-degree approach.
We will look at your savings, SIPs, and how to align for your daughter’s future.

Income, Expenses and Savings Snapshot
You earn Rs. 1.9 lakhs per month (in-hand).

Your monthly expenses are around Rs. 40,000.

That leaves you with Rs. 1.5 lakhs to save or invest.

Your current monthly investments:

Mutual Fund SIP – Rs. 32,000

EPF – Rs. 24,000 (employee + employer share)

PPF – Rs. 5,000

NPS – Rs. 5,000

Gold – Rs. 11,000

Digital Gold – Rs. 2,000

APY – Rs. 500

Chit Fund – Rs. 12,000

Total monthly investment: Rs. 91,500
You are saving around 48% of income.
That is a very strong habit.

Existing Asset Distribution
Your accumulated savings:

Mutual Funds – Rs. 6 lakhs

PPF – Rs. 2 lakhs

EPF – Rs. 7.5 lakhs

NPS – Rs. 1.5 lakhs

FD – Rs. 3 lakhs (emergency fund)

Stocks – Rs. 7.5 lakhs

APY – Rs. 20,000

This totals approx Rs. 27.5 lakhs.
This is an excellent start at age 33.
But now, you need to invest with specific goals.

Key Goal – Daughter’s Education
This is the most important long-term goal now.
You have 16 to 17 years to plan well.
Higher education costs can be Rs. 30 to 60 lakhs easily.
So early planning gives you better control.

You are saving well.
But savings need structure.
Random investments won’t give results.

Review of Mutual Fund Investments
You are investing Rs. 32,000 monthly in mutual funds.
You didn’t mention the scheme names.
So let us guide you on ideal structure.

Your SIP allocation should be across 3 to 4 funds only.
Do not keep more than 4 mutual fund schemes.

Ideal category-wise SIP allocation:

Flexi Cap Fund – Rs. 12,000

Multicap Fund – Rs. 8,000

Mid Cap Fund – Rs. 6,000

Small Cap Fund – Rs. 4,000

You can also add Rs. 2,000 in Balanced Advantage Fund

Avoid overlapping categories.
Don’t add sectoral or thematic funds.
Also avoid index funds.

Index funds are not suitable for this goal.

Why?

They copy the market and can’t exit bad stocks.

No flexibility when markets fall.

They don’t offer downside protection.

They miss tactical opportunities.

Instead, use actively managed funds.
These give better risk-adjusted returns over long term.
And a good fund manager can reduce volatility.

Direct Plans vs Regular Plans
If you are using direct mutual fund plans, please review now.

Problems with direct funds:

You invest without any personalised guidance.

You may panic and stop SIP during market crash.

You may hold too many funds and forget goals.

You miss chances to review or rebalance.

Invest through a regular plan with MFD having CFP certification.
Why?

You will have yearly review and guidance.

You will link funds to your real-life goals.

You will invest with discipline and tracking.

They will help switch if performance drops.

This support is more valuable than saving expense ratio.
Go with expert-led, not self-led investing.

PPF and EPF – Long-Term Safety Cushion
You are investing:

Rs. 24,000 monthly in EPF

Rs. 5,000 monthly in PPF

This is building a strong safe and tax-free corpus.
Keep this as part of retirement savings.
Do not use this for child education.

EPF is long-term and illiquid.
PPF also has 15 years lock-in.
But both give stable compounding.
Good for financial safety in later life.

NPS – For Retirement Only
Your NPS is Rs. 1.5 lakhs now.
You are investing Rs. 5,000 monthly.

This is fine for retirement.
But it cannot be withdrawn for daughter’s education.
So don’t depend on it for this goal.

Keep investing here for retirement purpose.
But keep that goal separate.

Emergency Fund – Keep it Untouched
You have Rs. 3 lakhs in FD for emergency.
That’s a good start.

Try to grow this to Rs. 4.5 to 6 lakhs over time.
This is equal to 3 to 6 months of your expenses.
You can use liquid fund or ultra-short-term fund too.

Do not touch this unless it’s a medical or family emergency.

Gold and Digital Gold
You are investing:

Rs. 11,000 monthly in physical gold

Rs. 2,000 monthly in digital gold

That is Rs. 13,000 per month total.

This is very high allocation to gold.
Gold doesn’t generate income or high returns.
Price can stay flat for years.

Keep gold investment within Rs. 2,000 to Rs. 3,000 per month.
That too only for diversification.

Better to move balance amount to mutual funds.
They will give better growth for child’s education goal.

Chit Fund Contribution – Risk Needs Caution
You are investing Rs. 12,000 monthly in chit fund.
This is a high-risk and unregulated space.

Chits are useful for liquidity.
But they don’t give predictable returns.

You must limit exposure here.
Withdraw from chit fund and shift to SIP gradually.

If you need monthly liquidity, use liquid mutual funds.
They are safer and regulated.

APY – Keep It Separate
You are contributing Rs. 500 monthly to APY.
This is okay as a small retirement pension.

But it will not help in education or wealth building.
Keep it running, but don’t increase.

Suggested Portfolio Restructuring – Going Forward
You can do the following from now:

Reduce gold SIP to Rs. 2,000

Stop chit fund and move Rs. 12,000 to SIP

Keep emergency fund untouched

Retain NPS, EPF, PPF for retirement

Increase equity SIP to Rs. 40,000 gradually

This way, your monthly investments will look like:

Mutual Fund SIP – Rs. 40,000

EPF – Rs. 24,000

PPF – Rs. 5,000

NPS – Rs. 5,000

Gold – Rs. 2,000

APY – Rs. 500

This will give you better structure and tracking.

Taxation Awareness
New tax rule for mutual funds:

Equity LTCG above Rs. 1.25 lakh taxed at 12.5%

STCG on equity taxed at 20%

Debt fund gains taxed as per your income slab

So plan exits only when needed.
Avoid churning funds frequently.
Let the compounding continue.

Portfolio Review and Rebalancing
Do this once a year:

Review mutual fund returns.

Remove underperformers if needed.

Check if you are on track for education goal.

Consult your CFP-qualified MFD.

Increase SIPs if income grows.

Staying consistent is more powerful than trying to time returns.

How to Plan for Your Daughter’s Education
Now start a separate SIP for her education.
Label it clearly in your tracker.
You can assign 2 to 3 mutual funds for this goal.

Start with Rs. 15,000 per month here.
Increase SIP every year with income hike.

Avoid using this corpus for other goals.
Let this grow untouched for 15 to 17 years.

What You Must Avoid
Please avoid the following:

Don’t invest more in gold.

Don’t invest in land or property.

Don’t use insurance plans for investing.

Don’t hold too many mutual fund schemes.

Don’t invest in direct funds without proper review.

Don’t keep more than 1–2 chit funds.

Don’t take out money from PF or PPF.

Focus only on structured, goal-linked, long-term investing.

Finally
You are saving well.
You are disciplined.
You have no loan pressure.

Now just focus on planning better.
Invest goal-wise.
Review yearly.
And stay consistent.

This will create a strong future for your daughter.
And a peaceful life for yourself.

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