Wife's Excessive Drinking: Husband Seeks Advice

Ans: Your financial discipline and structured investments are remarkable. You have built a strong portfolio, and your goals are well-defined. Now, let’s optimise your investments to ensure smooth execution of your plans.

Retirement Plan – Rs 1.5 Lakhs Monthly Withdrawal from SWP
Your Corpus Requirement: You need a corpus that generates Rs 1.5 lakh per month.
Existing Portfolio Strength: Your mutual funds and NPS provide strong long-term growth.
Strategy for Stability:
Allocate part of your corpus to hybrid and debt mutual funds for stability.
Keep 2-3 years of expenses in liquid or ultra-short-term funds.
Use a mix of equity and debt mutual funds for SWP to manage volatility.
Gradually move some equity investments to balanced funds before retirement.
Continue investing in mutual funds to ensure corpus longevity.
Son’s Higher Education – 3 Years Away
Estimated Costs: Higher education abroad is expensive and varies by country.
Liquidity Requirement: Funds should be easily accessible within 3 years.
Investment Strategy:
Move part of your mutual funds to short-duration or dynamic bond funds.
Keep a portion in fixed deposits to safeguard against market fluctuations.
Avoid equity investments for this goal, as the time horizon is short.
Daughter’s Marriage – 5 Years Away
Time Horizon: Five years allows for a balanced investment approach.
Investment Strategy:
Keep 50% in conservative hybrid funds for stability.
Allocate 30% in large-cap mutual funds for moderate growth.
Keep 20% in fixed-income instruments to protect against volatility.
Redeem investments in phases to avoid market fluctuations.
Review of Existing Investments
PPF & EPF:

These provide stable returns but lack liquidity.
Continue them for long-term safety but avoid fresh investments.
Mutual Funds (Rs 5.5 Crores Total):

Your SIP of Rs 2 lakh per month is well-structured.
Maintain equity allocation for long-term growth.
Ensure diversification across large-cap, mid-cap, and hybrid funds.
Monitor fund performance annually and rebalance if needed.
NPS (Rs 15 Lakhs):

Good for retirement but lacks full liquidity.
Continue contributions for additional tax benefits.
Employee Superannuation & Gratuity (Rs 14.5 Lakhs):

Treat this as a retirement safety net.
Avoid using this fund for short-term needs.
Company FD (Rs 10 Lakhs):

Provides stability but offers lower returns.
Avoid increasing FD exposure as it is taxable and may not beat inflation.
Gold (Rs 16 Lakhs):

A reasonable allocation for diversification.
Do not invest further unless required for family traditions.
Should You Invest in AIF?
Alternative Investment Funds (AIFs) Are High Risk

They are illiquid and require large-ticket investments.
Returns are uncertain compared to mutual funds.
They lack transparency and regulatory oversight like traditional investments.
Stick to What Works

Your mutual fund portfolio is already diversified and growing well.
Instead of AIFs, you can consider actively managed mutual funds for better liquidity and control.
Additional Investment Avenues
International Mutual Funds

To diversify across global markets.
Useful since your son’s education goal is abroad.
Debt Mutual Funds for Short-Term Goals

Better taxation benefits than FDs.
Suitable for education and marriage planning.
Hybrid Funds for Retirement Stability

Offers a balance between equity and debt.
Reduces volatility while ensuring steady returns.
Finally
Your portfolio is well-structured and diversified.
Stick to mutual funds and avoid AIFs for now.
Optimise asset allocation to ensure stability and liquidity.
Continue SIPs for wealth accumulation and long-term financial security.
Keep reviewing your portfolio and rebalance as required.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment