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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - May 06, 2024Hindi

I'm 27 years old and my monthly salary is 50k. I started investing in MF via SIP of around 20k monthly and its been 3 months now. I have also started an emergency fund and I have around 20-30k in that fund. I pay roughly 9k on rent, 10k on EMIs which will be over in 4 months and I spend roughly 8-10k on groceries, transport, utilities etc. I wish to build a corpus of around 50 lacs - 1 cr by the time i get married when I turn 35. How should I continue investing and how can i achieve my goal?

Ans: It's commendable that you've started investing at a young age and have already begun building an emergency fund. Let's outline a plan to help you achieve your financial goal of building a corpus of 50 lakhs to 1 crore by the time you turn 35.

Review Current Investments: Continue your SIP investments in mutual funds as you've been doing. Since you're comfortable with a monthly SIP of 20k, ensure that the funds you've chosen align with your risk tolerance and long-term financial goals.

Increase Savings: As your income grows or expenses decrease (such as after paying off your EMIs in 4 months), consider increasing your monthly SIP contributions. Aim to allocate a higher percentage of your salary towards investments while maintaining a healthy balance for living expenses and savings.

Diversify Portfolio: While SIPs are a great way to invest systematically, consider diversifying your investment portfolio by exploring other asset classes such as equity, debt, and possibly real estate in the future. Diversification helps spread risk and maximize returns over the long term.

Monitor and Rebalance: Regularly review the performance of your investments and make adjustments as needed. Rebalance your portfolio periodically to ensure it remains aligned with your financial goals and risk tolerance.

Emergency Fund: Continue building your emergency fund until it reaches at least 6-12 months' worth of living expenses. This fund will provide a financial safety net in case of unexpected expenses or job loss.

Set Milestones: Break down your financial goal of 50 lakhs to 1 crore by age 35 into smaller, achievable milestones. Set targets for each year or every few years to track your progress and stay motivated.

Seek Professional Advice: Consider consulting with a Certified Financial Planner who can provide personalized guidance based on your financial situation and goals. They can help you create a customized financial plan and provide recommendations for achieving your target corpus.

By staying disciplined in your savings and investment approach, increasing your contributions over time, and periodically reviewing your portfolio, you can work towards achieving your goal of building a significant corpus by the time you get married.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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