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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 08, 2025

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

Question by SOMANING on Aug 31, 2025Hindi

I want to 100 cr corpus at 2044 my as as of now is 41 i generate monthly 70k income how can I invest to reach my target.

Ans: – Setting Rs.100 crore target by 2044 shows high ambition.
– At age 41, you still have 23 years to build wealth.
– A monthly income of Rs.70,000 shows strong earning capacity.
– You already think about retirement and future financial independence.
– This clarity itself is rare and praiseworthy.

» Understanding the Target
– Rs.100 crore is a large corpus.
– You have 23 years till 2044.
– Time horizon is long enough for compounding to work.
– But such a target needs disciplined investing.
– Strong allocation strategy is the only way to reach it.

» Current Position and Gaps
– Monthly income of Rs.70,000 gives some surplus for investing.
– The challenge is that income itself is modest compared to target.
– Rs.100 crore requires large investments and aggressive growth.
– Savings rate and growth allocation must be maximised.
– Discipline in lifestyle is equally important.

» Role of Savings Discipline
– To reach such a big corpus, savings rate is crucial.
– If expenses are too high, surplus reduces.
– At least 40-50% saving from income is necessary.
– More saving means faster compounding and higher corpus.
– Sacrificing small lifestyle comforts today brings freedom later.

» Why Equity Mutual Funds Are the Core
– Equity is the only asset with power to multiply wealth long term.
– Debt or PF cannot deliver such growth.
– Active mutual funds give diversification, professional research and compounding.
– Index funds may look simple but carry serious drawbacks.
– They only mirror index, cannot avoid weak companies.
– Active funds have expert managers who can change allocation when required.
– They aim to beat markets and protect during corrections.

» Risks of Depending on Index Funds
– Index funds are blind followers of market.
– If an index stock fails, index still holds it.
– They give no protection in sharp downturns.
– They also provide average returns, not outperformance.
– For Rs.100 crore target, average is not enough.
– You need active management and professional oversight.

» Why Regular Funds Through CFP Are Better
– Direct funds may appear cheaper but lack guidance.
– Wrong allocation or wrong fund choice can ruin plan.
– Investors in direct funds often panic and redeem at wrong time.
– Regular funds through Certified Financial Planner give constant review.
– Rebalancing, taxation and withdrawal plans are monitored.
– This ensures journey to goal remains disciplined.
– The small cost of advice saves huge mistakes.

» Equity Exposure Strategy
– Majority of investment should be in equity mutual funds.
– At least 70% allocation for next 20 years is needed.
– Equity gives growth that can push corpus towards Rs.100 crore.
– As you near 2044, exposure should reduce slowly.
– This way, risk reduces while goal corpus stays safe.

» Debt Allocation for Stability
– Keep 20-25% in debt for safety and stability.
– Debt prevents panic during market falls.
– It also provides liquidity for emergencies.
– But debt cannot be the main driver for Rs.100 crore.
– Treat debt only as balancing tool, not growth engine.

» Insurance and Protection Review
– Protection is important before wealth creation.
– Check if you have sufficient term cover for dependents.
– Health insurance must be in place even if company provides.
– Avoid mixing insurance with investment like ULIPs or LIC endowments.
– If you already hold such policies, better to surrender and reinvest.
– Mutual funds provide much higher long-term growth.

» Emergency Fund Importance
– Build emergency fund equal to 9 months of expenses.
– Keep in liquid instruments, not in mutual funds.
– This prevents breaking investments during sudden needs.
– Stability of plan depends on safety net of emergency fund.

» Tax Efficiency Considerations
– Equity mutual funds: LTCG above Rs.1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– Debt mutual funds taxed as per income tax slab.
– Tax-efficient allocation improves overall wealth creation.
– Systematic withdrawal at retirement can reduce tax burden.

» Inflation Challenge
– Rs.100 crore today is different from Rs.100 crore in 2044.
– Inflation reduces real value of money.
– Corpus target must account for rising cost of living.
– Equity helps fight inflation better than PF or debt.
– Hence higher allocation to equity is justified.

» Building the Monthly Investment Plan
– With Rs.70,000 income, focus is on maximising savings.
– At least Rs.30,000–35,000 should go into investments monthly.
– Increase investment whenever income rises.
– Step-up SIP strategy works very well for long goals.
– Even small annual increases create huge impact in corpus.

» Role of Professional Review
– 23 years is a long journey.
– Markets, taxation, goals and personal life keep changing.
– Annual review with Certified Financial Planner is essential.
– Rebalancing keeps portfolio on track towards Rs.100 crore.
– Professional hand-holding avoids emotional decisions.

» Mistakes That Can Block Your Goal
– Relying too much on debt or PF.
– Stopping SIPs during market fall.
– Depending only on direct funds without expert review.
– Investing in ULIP, endowment or insurance-linked products.
– Not stepping up SIPs with salary growth.
– Ignoring inflation while calculating corpus.

» Lifestyle Choices and Wealth Creation
– High corpus goal demands lifestyle discipline.
– Avoid unnecessary loans or EMIs.
– Focus on living below means and saving aggressively.
– Every rupee saved and invested compounds for you.
– Sacrifice today ensures financial freedom tomorrow.

» Retirement Strategy Post 2044
– Once Rs.100 crore is achieved, focus shifts to preservation.
– Use bucket strategy for withdrawal.
– Short-term needs kept in debt or liquid.
– Medium-term in hybrid funds.
– Long-term portion continues in equity for growth.
– This keeps income flowing throughout retired life.

» Power of Compounding
– Compounding is strongest when money works for long years.
– Early and consistent investing beats late large investing.
– Even small step-ups in SIP create exponential growth.
– Discipline and time are biggest allies in wealth creation.

» Role of Stock Investments
– Direct stock picking is risky without time and skill.
– For Rs.100 crore target, reliance on stocks is risky.
– Better to channel stock money into active mutual funds.
– Keep very small allocation if you enjoy stock tracking.
– Let professionals manage majority of your wealth.

» Family and Legacy Planning
– Rs.100 crore is not only for retirement.
– It creates legacy for children and next generation.
– Proper estate planning and Will are necessary.
– Tax-efficient succession ensures wealth passes smoothly.
– Consider setting trusts if corpus grows huge.

» Finally
– At 41, your dream of Rs.100 crore by 2044 is challenging but not impossible.
– Equity mutual funds with disciplined SIP and step-up investing are key.
– Direct funds and index funds should be avoided due to risks.
– Regular funds through Certified Financial Planner provide ongoing review.
– Insurance, emergency fund and tax planning give safety net.
– Lifestyle control and consistent savings ensure journey is smooth.
– With focus, patience and discipline, Rs.100 crore target can be achieved.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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