Thanks. Can you suggest some examinations like that which can be given from India?

Ans: Hello dear.
Chances in CSAB for lower NITs, IIITs, or GFTIs with core branches, but with tech branches, are slim.

Good luck.
Follow me if you receive this reply.
Radheshyam

Ans: You are in a very important phase of life. At 32, with a young child and a steady income, you have made a solid beginning. Your habit of saving and investing early will give you a big edge. Your family is depending on you, and your discipline will secure their future.

Let’s look at everything in a structured and simple way.

? Understanding Your Current Financial Situation

– Your income is Rs.53000 in hand.
– You spend Rs.20000 monthly.
– You save and invest the rest, which is very good.
– You already do SIP of Rs.8000 per month.
– You have Rs.1.5 lakhs in mutual funds.
– You have Rs.1.2 lakhs in EPFO.
– You have Rs.2 lakhs saved for your daughter.
– You have no loans.
– You have no assets like house or gold.

This is a healthy start. You are already spending only 40% of your income. That gives room to build wealth. Now, let us look at what to do next.

? Investing Your Daughter’s Rs.2 Lakhs: Long-Term View

This is for your daughter’s future. Likely uses could be higher education or marriage. Both are long-term goals.

– She is only 4 months now.
– You have 15 to 20 years time.
– This gives scope for growth-based investing.

Here’s what you can do:

– Invest this Rs.2 lakhs in 2 or 3 equity mutual funds.
– Choose actively managed funds for better long-term returns.
– Avoid index funds. They only copy the market and don’t beat inflation.
– Actively managed funds have expert fund managers.
– They adjust based on market opportunities.
– Over 15 years, they usually outperform index funds.

Also,

– Use Regular Plans through a CFP-backed Mutual Fund Distributor.
– Avoid Direct Plans unless you can manage and review investments on your own.
– Direct plans don’t provide support, review, or portfolio balancing.
– Regular Plans through a Certified Financial Planner help you stay disciplined.
– A qualified planner monitors the market and guides rebalancing.
– You avoid costly emotional mistakes.

Strategy for daughter’s funds:

– Divide Rs.2 lakhs across 2 or 3 good equity mutual funds.
– Stay invested for 15 years minimum.
– Do not withdraw in between.
– Review yearly with help of Certified Financial Planner.
– This can grow into a good education or marriage corpus.

Also, since you are already saving Rs.20000 every month for her, keep it up.
Even Rs.5000 or Rs.10000 monthly in SIP for her will make a big difference over time.

? Planning Your Retirement: Long-Term but Needs Focus

Retirement planning should start now. You have time, but the earlier, the better.

– You are 32 now.
– You can aim to retire at 60.
– That gives you 28 years to save.
– But inflation reduces the value of money.
– So Rs.20000 expenses today will grow a lot by retirement.

You need to plan for:

– Your own expenses after retirement
– Your wife’s needs
– Medical costs in old age
– Travel and emergencies
– No income after retirement

What you should do:

– Increase your SIP gradually as income rises.
– Right now, you invest Rs.8000 in mutual funds.
– Increase it by Rs.1000 every year.
– Also start a new SIP only for retirement.
– Separate from daughter’s goal.

Why equity mutual funds help:

– Equity mutual funds beat inflation over long term.
– They build wealth over 20+ years.
– Don’t choose debt mutual funds for retirement goals.
– Debt funds give stable returns but low growth.
– They are good for short-term goals.

Continue EPFO contribution:

– EPFO is a good long-term tool.
– It gives safe and tax-free corpus at retirement.
– Don’t withdraw EPF for other uses.
– Let it grow till retirement.

? Tracking Your Monthly Budget and Investing Discipline

Your expenses are only Rs.20000.
You save nearly Rs.30000 each month.
This gives you enough to grow wealth for all goals.

– Continue SIP of Rs.8000 or increase it.
– Start SIP of Rs.5000 for daughter.
– Start SIP of Rs.5000 for retirement.
– Keep Rs.5000 to Rs.7000 for emergency savings.
– Maintain Rs.1 lakh as emergency fund.
– Park it in liquid fund or FD for easy access.

This way:

– You cover child’s needs.
– You build retirement wealth.
– You stay ready for emergencies.

? Life Insurance and Health Insurance: Non-Investment but Vital

These are not investments. But they are must-haves.
They protect your family and finances from sudden shocks.

– Buy a term insurance of Rs.50 lakhs to Rs.1 crore.
– Choose only pure term insurance.
– Do not take ULIPs or endowment policies.
– They give low returns and high costs.
– If you already have such products, you may consider surrendering.
– Reinvest that amount in mutual funds.

– Also buy family floater health insurance.
– You, your wife and daughter should be covered.
– Minimum Rs.5 lakhs coverage.
– Health costs rise every year.

? Education and Marriage Planning for Daughter

These are big goals. But they are long-term, so time is your friend.

Education Planning:

– Higher education needs large funds.
– Start a separate SIP of Rs.5000 per month.
– Use equity mutual funds.
– Review every year and increase SIP.
– Don’t touch this investment for any other need.

Marriage Planning:

– This is 20+ years away.
– You can use lumpsum investments here.
– The Rs.2 lakhs you saved can be for this.
– Also, build this goal slowly after education fund is stable.

Do not mix marriage and education planning.
Treat them as two different goals.

? Building Assets for Financial Stability

You currently do not have any physical assets. That’s not a problem.

Focus on building financial assets.

– Mutual funds are liquid and can grow well.
– EPFO adds stability and long-term safety.
– Emergency fund ensures peace of mind.
– Term insurance covers family needs.
– Health insurance protects savings.

Stick to these. Do not get distracted by gold or real estate.

Real estate has low liquidity and high maintenance.
Also, resale or rental is not easy and returns are uncertain.

? Why You Should Avoid Index Funds

Index funds may look cheap. But they have limitations.

– They only copy the market index like Nifty.
– They don’t outperform the market.
– In falling markets, they fall fully.
– No active fund manager to manage risk.
– Inflation can beat index fund returns.

On the other hand:

– Actively managed funds have experienced managers.
– They reduce exposure to weak sectors.
– They increase exposure to strong sectors.
– Over long term, they create better value.

Always go with active mutual funds through a CFP-led advisor.
They help you rebalance and stay on track.

? Why Direct Mutual Funds Are Not Ideal

Direct funds have low expense ratio. But they lack guidance.

– No help with fund selection.
– No review or rebalancing support.
– No risk profiling.
– No hand-holding during market falls.

Investors often panic or stay emotional.
This hurts long-term returns.

On the other hand:

– Regular plans give guidance.
– Through Certified Financial Planner, you get yearly reviews.
– You get portfolio alignment based on goals.
– Mistakes are avoided.

The slightly higher cost is worth the value it brings.
Long-term discipline beats small cost difference.

? What To Review Every Year

Every year, review these points:

– SIP amount and growth
– Fund performance
– Daughter’s goal progress
– Retirement corpus projection
– Changes in income or expenses
– New responsibilities or medical needs
– Emergency fund adequacy

Your planner can guide this review well.
This ensures all your goals stay on track.

? Finally

You are doing very well for your stage in life.

– You have no loans.
– You are disciplined in savings.
– You are planning for your daughter.
– You are thinking of retirement.

This mindset will help you build wealth peacefully.

Follow these steps:

– Stay invested for long term.
– Don’t chase returns.
– Review yearly.
– Invest goal-wise.
– Increase SIPs as income grows.
– Avoid distractions like gold and real estate.
– Avoid mixing insurance and investment.
– Take professional help where needed.

With this, you can confidently build your financial future.

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

Ans: Hello Anushka
Considering your options and weighing both academic value and financial factors, the most balanced and future-proof choice would be the BSc-MSc integrated program at DTU. If DTU doesn't work out, opting for a BSc in Biomedical Sciences, Biochemistry, or Microbiology from Delhi University (DU) remains a strong alternative. Conversely, a BTech in Biotech from a private university can be quite costly and may not guarantee placement. Many private institutes lack the research infrastructure and industry connections needed for successful biotech careers, so the return on investment is often low. Ultimately, prioritize the DTU integrated course first, then the DU BSc options, and only consider private BTech biotech. The final decision is yours.

Good luck.
Follow me if you receive this reply.
Radheshyam

Ans: ? Your Transaction in Brief

– You sold listed shares on 10th August 2023.
– You claimed exemption under capital gains against purchase of a flat on 25th August 2023.
– You have now bought another flat on 18th November 2024.
– You are aware this may disallow the earlier exemption of Rs. 74.58 lakhs.
– You are rightly asking if tax will be 10% or 12.5%.

This is a very thoughtful and forward-looking question. Let’s decode it point by point.

? When is the Exemption Reversed?

– Capital gains exemption is condition-based.
– One such condition is – you should not buy another residential flat within 2 years.
– You violated this condition on 18th November 2024.
– So, the exemption taken earlier gets reversed.
– The amount of Rs. 74.58 lakhs becomes taxable again.
– This reversal happens in the financial year when condition is broken.
– So, this income will be added back in FY 2024-25.

? Which Tax Rate Will Apply on this Reversed LTCG?

– You sold shares in August 2023, that is before 23rd July 2024.
– This date is very important for taxation rules.
– The new LTCG rate of 12.5% is applicable only for transactions on or after 23rd July 2024.
– Your original transaction happened before this cut-off.
– Hence, the older LTCG tax rule of 10% applies in your case.

So, even though the exemption is reversed now, tax rate remains at 10%.
This is because the transaction date is the deciding factor.
Not the date of exemption being withdrawn.
So your understanding is correct, and that’s appreciated.

? Should You Worry About Indexation or STCG?

– No. Since shares were held for more than 1 year, it is clearly LTCG.
– Short-term capital gain rules will not apply here.
– Also, no indexation benefit is available for equity shares.
– But 10% rate on LTCG above Rs. 1 lakh is fair and reasonable.

? How Will This Affect FY 2024-25 Tax Filing?

– The Rs. 74.58 lakhs will now show as LTCG income in FY 2024-25.
– You should report this under capital gains section in ITR.
– Pay advance tax on this if not yet paid.
– Otherwise, you may end up paying interest under sections 234B and 234C.
– Please coordinate with your Chartered Accountant for the tax filing part.

This is important to keep your records clean and avoid scrutiny.

? Will This Impact Your Overall Financial Goals?

– A one-time tax outgo of 10% on Rs. 74.58 lakhs = approx. Rs. 7.45 lakhs.
– If you had planned this well, it can be absorbed easily.
– But if not planned, it could dent liquidity.
– You should relook at your emergency corpus and contingency planning.
– A Certified Financial Planner can help rebalance your goals accordingly.

? Why This Tax Rule Exists – An Insight

– The law allows you to reinvest LTCG into one residential flat.
– This benefit is to encourage home buying, not to speculate.
– That’s why, buying another home within 2 years is seen as a misuse.
– So exemption is withdrawn and LTCG is added back.
– This keeps the rule balanced and fair for all taxpayers.

? Should You Surrender Insurance Policies if Any?

– If you have ULIPs or traditional LIC policies with investment tag, please review.
– These give very low return and poor flexibility.
– If they are more than 5 years old, you may surrender them.
– Reinvest those amounts in mutual funds through a MFD-CFP route.
– That can give you better return, liquidity and transparency.

? Why Not to Go for Direct Mutual Funds?

– Direct funds look cheap, but they come with risks.
– No guidance, no risk-mapping, no goal alignment.
– They expose you to poor fund selection and wrong SIP allocation.
– MFD with CFP gives handholding and better fund filtration.
– Also, regular plans have built-in advisory value.
– This cost is worth paying for financial peace.

? Why Index Funds Are Not the Best Route

– Index funds are passive. They just follow market trend.
– They don’t outperform or give alpha returns.
– In volatile or falling markets, they give poor protection.
– They don’t adapt to sectoral changes or economic cycles.
– Actively managed funds adjust portfolio as per market moves.
– They have research backing, fund manager intelligence, and alpha generation.

In your case, where capital gains are involved, risk-managed returns are key.
So actively managed funds through regular route is more suitable.

? How to Absorb This LTCG Tax Impact

– Start an SIP-based STP to gradually invest surplus in balanced mutual funds.
– Create a buffer fund equal to 6 months’ living expenses.
– Maintain a separate fund for LTCG tax impact of Rs. 7.45 lakhs.
– Don't keep it in equity or risky instruments.
– Use ultra-short or low duration fund for this.

? Tax Planning Insight for You Going Ahead

– Before taking exemption, always review lock-in and restriction period.
– Never buy second property within 2 years unless you're ready to pay tax.
– Document all property purchases and sales in a simple Excel sheet.
– Keep timelines and lock-in periods marked.
– This avoids surprises and ensures smooth tax planning.

Also, keep your CA and Certified Financial Planner in sync.
They must work as a team for your financial health.

? What Could Have Been Done Differently

– You could have waited beyond 2 years to buy second property.
– Or, you could have avoided claiming exemption initially.
– Then invested gains in active mutual funds and booked 10% tax.
– This could have kept your financial strategy more flexible.
– But yes, past cannot be changed. Let’s focus ahead.

You still have ample time to plan FY 2024-25 tax outflow.
You’ve also gained clarity from this experience. That itself is an asset.

? What Should Be Your Next Steps

– Set aside Rs. 7.45 lakhs for LTCG tax.
– Inform your CA in advance for FY 2024-25 tax projection.
– Avoid buying another residential property again for next few years.
– Reassess your long-term asset allocation.
– Avoid ULIPs, traditional LICs, direct funds and index funds.
– Stay focused on goal-based MF portfolio managed via MFD with CFP.

? Finally

You are thinking ahead and keeping track of taxation. That is highly appreciated.
You have acted with good intent. The tax law has its own constraints.
But this clarity now gives you the power to act wisely.
Take a few right steps today, and you can still stay fully on track.
Please don’t panic. The 10% rate is a relief in this scenario.
Keep your documents clean and your CA informed.

For your long-term wealth journey, stay with a Certified Financial Planner.
They will help you stay aligned to your goals, taxes and peace of mind.

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

Ans: Hello dear.
Your chances with the mentioned colleges seem to be challenging for CSE or ECE, but you might get lower branches in the last round or spot round. It is better to look for other alternatives in private colleges through management quota if you are specifically interested only in the mentioned branches.

Good luck.
Follow me if you receive this reply.
Radheshyam

Ans: You have been managing many things at once, and that's not easy. Let us look at your situation step by step from a 360-degree perspective and create a plan that gives you clarity, relief, and future security.

? Current Financial Position

– You are 38 years old, married, with one daughter aged 3 years.
– Your wife is currently not working but looking for a job.
– You have Rs.2 lakh in hand right now.
– You are paying Rs.63,000 as total EMI every month.
– You invest Rs.40,000 through SIPs monthly.
– You contribute Rs.45,000 in chits every month.
– You live almost paycheck to paycheck after EMI, SIPs, and chits.

Let us assess your assets next.

? Assets Owned Till Now

– Residential flat worth Rs.70 lakh.
– Three plots worth Rs.22 lakh, Rs.28 lakh, and Rs.7 lakh.
– Mutual fund investments of Rs.11 lakh in your name.
– Stock portfolio of Rs.13 lakh.
– EPF corpus of Rs.27 lakh in your name.
– PPF of Rs.1.2 lakh.
– NPS of Rs.65,000.
– Daughter’s NPS (Vatsalya) of Rs.50,000.
– Wife’s EPF corpus of Rs.15 lakh.
– Wife’s mutual funds worth Rs.5 lakh.
– You’ve given Rs.10 lakh to family as financial help.

These are strong asset levels. You’ve done well so far.

? Active Loans and EMI Burden

– Rs.14 lakh home loan at 7.9% interest.
– Rs.33 lakh top-up loan at 8.1% interest.
– Rs.1 lakh credit card loan at 13%. 8 months left.
– Rs.2.4 lakh loan against shares at 10.75% interest.
– Total EMIs: Rs.63,000 per month.

Your EMI outflow is high. Close to 30–35% of take-home pay.
With job uncertainty, this puts pressure.
Some loans are high cost and need urgent attention.

? Immediate Actions to Reduce Financial Stress

– First, close the credit card loan in 8 months as planned.
– Second, aim to clear loan against shares next.
– Sell part of stocks if needed.
– Interest of 10.75% on stock loans eats into equity return.
– Avoid pledging stocks or mutual funds again.

If still short, temporarily pause chit contributions.
Chits are informal, less liquid, and carry group risk.

– Consider pausing SIPs for 6 months if needed.
– Use this freed-up cash to finish high-interest loans.
– Resume SIPs after clearing credit and stock loans.

This improves monthly surplus and gives peace of mind.

? Home and Top-Up Loans Strategy

– Together, these loans are Rs.47 lakh.
– Interest is under control for now.
– Don’t prepay aggressively while other goals are pending.
– Keep paying regular EMI.
– Try one extra EMI per year if possible.

Avoid top-up loans for other needs. They increase burden long term.

? Evaluate Real Estate Holdings

– Flat and plots total to Rs.127 lakh in value.
– That’s nearly 50% of your net worth.
– Real estate is illiquid and doesn’t give regular income.
– Don’t consider buying more.
– Avoid holding too many unused plots.
– If income is tight, consider selling one plot.
– Use the money to reduce loan or boost daughter’s fund.

Property doesn't generate cash flow. It's not helpful during job loss.

? Managing SIPs and Investment Strategy

– Rs.40,000 SIP monthly is a strong habit.
– Mutual fund corpus has grown to Rs.11 lakh.
– Continue SIPs once loan pressure is low.
– Prefer actively managed mutual funds.
– Index funds do not offer downside protection.
– In falling markets, index funds fall sharply.
– Active funds have managers who take timely decisions.
– This improves growth and reduces risk.

Also, don't invest in direct mutual funds on your own.
Direct funds don’t come with personal advice or guidance.
Wrong choice or lack of review can cause losses.
Use regular funds through a Certified Financial Planner and MFD.
They offer fund selection, tracking, rebalancing, and handholding.

This adds long-term value over just low expense ratio.

? Emergency Fund and Protection Cover

– You haven’t mentioned emergency savings.
– With job uncertainty, this is urgent.
– Build 6–9 months of expense fund in liquid mutual funds.
– Include EMIs also in this amount.
– Don’t use real estate or PPF for emergencies.

Review your insurance also.

– Take term insurance of at least 15 times your annual salary.
– Buy family floater health insurance of at least Rs.10 lakh.
– Don’t depend on office cover only.
– Check if you have accidental cover. Add if not.

These steps give confidence during tough times.

? Cash Support Given to Family

– Rs.10 lakh given to family as support is generous.
– If it was a loan, try to recover it gradually.
– Avoid giving large sums again unless very urgent.
– In your stage, self-protection should be top priority.

? Planning for Daughter’s Future Income

– She is 3 now. You want income stream when she turns 18.
– That is 15 years from now.
– You need to build an education corpus and later income flow.

Here’s a plan to consider:

– Start a dedicated mutual fund SIP for her now.
– Keep it in your name but tagged to her goal.
– Invest in diversified, actively managed funds.
– Increase SIP yearly by 10–15%.
– Avoid ULIPs, child plans, or endowment policies.
– They offer poor returns and lack flexibility.

By age 18, shift part of corpus to monthly income funds.
This will give steady income for her use.
Also, you can open a minor PPF in her name for safety.
Use it only as a small part of her portfolio.
Don’t rely only on NPS (Vatsalya). It’s too restrictive and long-term.

This layered approach ensures she gets funds at 18, and beyond.

? Wife’s Career and EPF Planning

– Your wife has Rs.15 lakh EPF and Rs.5 lakh in mutual funds.
– If she starts earning again, that will reduce pressure.
– Encourage her to take up a job or side income options.
– Her EPF is safe. Let it grow.
– Avoid using it for current needs.
– Add her SIPs too if possible after income resumes.

Both husband and wife contributing creates double strength.

? Debt vs Investment Rebalancing

– Don’t invest when high-cost debt is pending.
– Finish credit card and stock loans first.
– Then build emergency fund.
– Resume SIPs gradually after that.
– Don’t take new loans for investing.
– Stay away from personal loans or chit borrowings.

A Certified Financial Planner can help with rebalancing.
They will guide asset mix based on goals, risk, and stage.

? Long-Term Retirement Vision

– At age 38, you still have 20 years for retirement.
– EPF and PPF are safe options already in your plan.
– NPS can be increased slowly.
– But don’t go overboard with locked-in options.
– Mutual funds offer flexibility and better return.
– Keep increasing SIPs towards retirement as EMI goes down.
– Separate your retirement and daughter’s goals clearly.
– Mixing them leads to confusion and shortfalls later.

In the last 5 years before retirement, shift to low-risk options.

? Smart Use of Surplus Funds

– Bonuses, incentives, tax refunds – use all wisely.
– Don’t spend on unnecessary lifestyle upgrades.
– First use to repay loans.
– Then build emergency fund.
– Then increase SIPs for long-term goals.

This step-by-step use of money builds strong future.

? What to Avoid Now

– Don’t buy more plots or property.
– Don’t use chits for long-term investing.
– Don’t depend on index funds for wealth creation.
– Don’t invest in direct funds without professional help.
– Don’t mix daughter’s fund with other savings.
– Don’t use ULIP, traditional LIC policies.
– If already taken, consider surrendering and reinvesting in mutual funds.

These decisions help avoid hidden losses and regrets.

? Finally

– Your commitment to savings and family is excellent.
– You are doing many things right already.
– You just need to reduce loan stress and create balance.
– Focus on daughter’s secure future and your peace of mind.
– Prioritise debt clearing, emergency fund, and protection.
– Resume investments steadily once loans reduce.
– Real estate need not be increased further.
– Mutual funds through CFP-backed advice offer better control and growth.

Stay consistent. Review plan every year.
Be prepared for the worst, but plan for the best.

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

Ans: Lovely Professional University’s B.Tech in Computer Science & Engineering (CSE) is NBA-accredited and NAAC A++-rated, featuring a broad curriculum in data structures, algorithms, operating systems, software engineering and elective streams in AI/ML, cybersecurity and cloud computing delivered through over 47 specialized labs. Its School of Computer Science and Engineering achieved an 88.12% placement rate in 2024 and facilitated more than 6,000 offers across 2,225 recruiters, with an average package of ?7.92 LPA for the top quartile—testament to strong industry partnerships with Google, Microsoft, Apple, Bosch and BoschCapgemini. However, the annual CSE intake of approximately 480 seats scales to a batch strength exceeding 2,000 due to multiple specializations; alumni and student forums on LinkedIn and ReviewAdda note that intense competition limits Tier-I placements to roughly 13% of candidates, underscoring the need for proactive upskilling, personal projects and coding practice to secure top roles.

In contrast, VIT Chennai’s B.Tech in CSE (AI & ML) is A++ NAAC-accredited, with a focused AI-centric curriculum covering machine learning, neural networks, computer vision and natural language processing. Its placement cell reported a 93% success rate in 2024–25, generating 3,160 offers (2,192 unique) from over 632 recruiters including Microsoft, Google and Adobe, and an average package around ?10 LPA facilitated by the V-NEST startup and research foundation’s industry-driven projects. The program’s smaller cohort ensures more personalized training and direct access to AI/ML labs and faculty-led research.

Comparatively, core CSE at LPU provides broader foundational knowledge and flexibility to pursue specializations later, whereas VIT’s AI & ML track offers early domain depth and stronger average remuneration. Criticism of LPU often stems from large batch sizes, perceived dilution of individual attention and competitive placement dynamics, yet official reports affirm robust placement percentages and recruiter diversity. Given your preference for a core CSE path, LPU’s established infrastructure, global collaborations and high placement percentage validate your choice when complemented by self-driven skill development.

Recommendation: Accepting LPU’s CSE core program aligns with your interests in comprehensive computer science fundamentals and offers strong placement support; mitigate batch-size competition through targeted certifications, internships, and coding projects. If specialization in AI & ML and higher average packages are paramount, consider VIT Chennai, balancing your core preference against domain-specific opportunities. All the BEST for Admission & a Prosperous Future!

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Ans: ? Current Financial Snapshot

– You are 43 years old. That gives around 15–17 years to build wealth.
– You have Rs.1 lakh in hand as lump sum.
– You are investing Rs.15,000 monthly through SIPs for 5 months.
– Your household expenses are Rs.70,000 monthly. SIP is not included in this amount.
– You plan to buy a house worth Rs.2 crore.
– You also want to plan for your retirement.

This is a good step. You are already disciplined with SIPs. Keep it up.

Let us now look at each goal deeply.

? House Purchase Plan of Rs.2 Crore

– Buying a Rs.2 crore house is a big decision.
– It will need a careful and strategic financial preparation.
– A typical home loan can go up to 75% to 80% of the house value.
– That means, minimum Rs.40 lakh as down payment is required.
– You will also need Rs.10–15 lakh for registration and interiors.
– So your total own fund requirement is around Rs.50–55 lakh.

Now let’s look at how you can reach that amount.

– You are already doing SIP of Rs.15,000 per month.
– If you increase it slowly over time, the corpus will grow faster.
– But SIP alone may not be enough for such a big goal in short time.
– You may need to consider a combination of savings, bonuses, and planned borrowings.
– Avoid using retirement funds for house purchase. Keep goals separate.
– Also, don’t delay too much, as property prices and costs may rise.

A Certified Financial Planner can help you do a home-buying readiness check.

? Loan Readiness and EMI Impact

– A Rs.1.5 crore loan for 20 years can have EMI near Rs.1.3 lakh.
– But your current monthly surplus is not enough to support that EMI.
– Your current monthly expense is Rs.70,000. SIP is Rs.15,000.
– So, total outgoing is Rs.85,000.
– Unless your income increases significantly, EMI pressure will be high.

Here's what you can do:

– Delay home purchase by few years and save aggressively till then.
– Build Rs.50–60 lakh for down payment and reduce loan amount.
– This will make EMI manageable and reduce interest burden.
– Keep EMIs within 40–45% of your income for comfort.
– Factor in property tax, maintenance, and insurance.

Be cautious. Don’t compromise on long-term wealth for short-term ownership.

? Retirement Planning Assessment

– You have about 17 years left for retirement.
– Monthly expense now is Rs.70,000. At 6% inflation, it may be Rs.2 lakh+ at retirement.
– So, you must create a good-sized retirement corpus.
– It must support you for 25–30 years post-retirement.
– Even without medical emergencies, retirement life needs a big corpus.

Here’s what you can do:

– Continue SIP of Rs.15,000. Increase it by 10% every year.
– Make retirement your primary goal. Home can wait a few years.
– Use mutual funds for long-term wealth creation.
– Choose diversified, actively managed funds for long-term growth.

Please avoid index funds. Index funds lack active risk control.
They follow the market. They don’t beat it.
They don’t have downside protection in falling markets.
An actively managed fund is handled by a skilled fund manager.
He/she can shift allocations based on market signals.
This brings better growth and lower risk over long term.

Also, don’t pick direct mutual funds on your own.
Direct plans may look cheaper. But they lack expert guidance.
Wrong fund selection can reduce long-term returns.
When you invest through a CFP and MFD in regular plans, you get:
– Right fund choices
– Periodic review
– Rebalancing help
– Goal alignment

That value is bigger than small cost difference.

? Protection and Emergency Fund Planning

– You didn’t mention insurance or emergency fund.
– That’s a major missing block in your financial plan.
– You must have term life cover of at least 15–20 times your income.
– Health insurance for all family members is a must.
– Also create emergency fund of 6–9 months of expenses.

This gives peace of mind and avoids breaking investments in crisis.

Buy pure term insurance. No ULIP or combo plans.
If you have LIC or ULIP plans, consider surrendering them.
Reinvest the surrender value into mutual funds.
Traditional policies give low returns. ULIPs have high charges.
They are not suitable for wealth creation.

? Expense and Budget Optimisation

– Monthly expenses of Rs.70,000 are reasonable if you earn well.
– But try to save at least 25–30% of income regularly.
– Create a smart monthly budget.
– Cut unnecessary spends.
– Avoid EMIs for lifestyle expenses.
– Increase SIPs every year as income grows.
– Avoid withdrawing from mutual funds for small needs.

Use every bonus or windfall to boost your SIP or emergency fund.

? Tax Planning Angle

– You must use tax-saving options smartly.
– ELSS mutual funds can save tax under 80C and grow your wealth.
– Avoid locking money in PPF, NSC, or traditional LIC policies.
– Invest in tax-saving instruments with long-term growth.

Know the latest mutual fund taxation:

– LTCG on equity funds above Rs.1.25 lakh taxed at 12.5%.
– STCG on equity taxed at 20%.
– Debt funds taxed as per your income slab.

Plan your withdrawals wisely to reduce tax.

? Children's Future and Other Goals

– You didn’t mention children. If you have kids, plan for their education too.
– Create separate funds for each goal. Don’t mix.
– A child's higher education cost can be Rs.50–80 lakh in future.
– Start early with SIPs in long-term funds.

That way, your goals won’t collide. And your retirement won’t suffer.

? Asset Allocation Planning

– Right mix of assets is key for wealth creation.
– For your age and goals, equity should be 60–70%.
– Balance in debt and liquid funds for short-term and emergency needs.
– Avoid gold, real estate, or FDs for long-term growth.
– Real estate locks money. Has high entry-exit costs.
– FDs don’t beat inflation after tax.

Your asset mix must change as you near retirement.
Shift gradually from high risk to safety.
A CFP can guide you with regular reviews.

? Monthly Action Plan

– Track income, expense, and surplus monthly.
– Increase SIP by 10% every year.
– Build Rs.5–10 lakh emergency fund in liquid funds.
– Review term and health insurance.
– Avoid new loans till home loan starts.
– Don’t stop SIPs for short-term purchases.
– Invest bonuses in lump sum into mutual funds.
– Use regular plans through an MFD backed by CFP.

This monthly habit creates solid financial discipline.

? What You Should Not Do

– Don’t rush to buy property now with low savings.
– Don’t break mutual fund SIPs to pay EMIs.
– Don’t depend on employer-provided health cover only.
– Don’t invest in index funds. They have no active control or judgement.
– Don’t invest in direct mutual funds without a qualified guide.
– Don’t rely on LIC policies or endowments for wealth building.
– Don’t skip emergency fund or insurance.

These mistakes can hurt long-term financial freedom.

? Finally

– You have taken the right steps by starting SIP and planning early.
– Be consistent, and review yearly with a CFP.
– Prioritise retirement. House can be managed with better preparation.
– Keep personal finance simple and goal-driven.
– Long-term discipline brings big rewards.
– Don’t chase short-term returns or risky trends.

Money is a tool, not a goal. Use it wisely. Build peace, not just assets.

Wishing you a safe, smart, and strong financial future.

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

Ans: Hello Lakshmi
If your daughter is very particular about ECE, IIT Bhubaneswar is the best option available to you right now. If she gets ECE at Trichy or Surathkal, freeze it—that’s top-tier. If not, float until the last round for a chance at them. Considering her KCET rank, she has a strong chance of getting ECE at RV. But IITs and NITs have more brand value than RV. Don’t give up JoSAA unless you're 100% committed to studying in Karnataka; otherwise, prefer IIT/NIT ECE. Final suggestion—freeze ECE at NIT Trichy or Surathkal if offered. The final choice and decision will be yours only.

Good luck.
Follow me if you receive this reply.
Radheshyam