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My 20L cash vs 22L loan: Best use for my money?

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 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 venkatesh on May 18, 2025Hindi

Money

Dear Sir, I have 22 lakhs outstanding home loan with 32000 emi with remaining 110 months left. I also have a liquid amount of approx 20 lacs, and 8.5 lacs in shares (now values about 7 lacs). Should I close my home loan or continue to invest in shares or MFs?. Suggest good options

Ans: You have a home loan of Rs.22 lakhs with an EMI of Rs.32,000 and 110 months remaining.
Additionally, you possess Rs.20 lakhs in liquid funds and Rs.7 lakhs in shares.
You're contemplating whether to close your home loan or continue investing in shares or mutual funds.
Let's evaluate your situation comprehensively.

Assessing Your Current Financial Position
Home Loan: Rs.22 lakhs outstanding with 110 months (approximately 9 years) remaining.

EMI: Rs.32,000 per month.

Liquid Funds: Rs.20 lakhs.

Equity Investments: Rs.7 lakhs (current value).

Emergency Fund: Assuming you have a separate emergency fund, as it's not mentioned.

Evaluating the Option to Prepay the Home Loan
Advantages:

Interest Savings: Prepaying the loan can save a significant amount in interest over the remaining tenure.

Debt-Free Status: Eliminating the EMI can provide psychological relief and increase monthly cash flow.

No Prepayment Penalty: Most banks do not charge a prepayment penalty on floating-rate home loans.

Considerations:

Liquidity: Using a large portion of your liquid funds to prepay the loan may reduce your financial flexibility.

Opportunity Cost: The funds used to prepay the loan could potentially earn higher returns if invested wisely.

Evaluating the Option to Invest in Mutual Funds or Shares
Advantages:

Potential for Higher Returns: Historically, equity investments have provided higher returns over the long term compared to the interest saved by prepaying a home loan.

Liquidity: Investments in mutual funds can be more liquid, allowing access to funds if needed.

Considerations:

Market Risk: Equity investments are subject to market volatility and may not guarantee returns.

Discipline Required: Regular investments and a long-term perspective are essential to realize potential gains.

Recommended Approach
Maintain a Balanced Strategy:

Emergency Fund: Ensure you have a separate emergency fund covering 6-12 months of expenses.

Partial Prepayment: Consider using a portion of your liquid funds to make a partial prepayment, reducing the loan principal and interest burden.

Invest the Rest: Allocate the remaining funds to diversified mutual funds, focusing on long-term growth.

Benefits:

Reduces debt and interest payments.

Maintains liquidity and potential for higher returns.

Balances financial security with growth opportunities.

Final Insights
Your current financial position is strong, with substantial liquid assets and manageable debt.
By adopting a balanced approach—partially prepaying your home loan and investing the remaining funds—you can optimize your financial health.
This strategy offers the benefits of reduced debt, maintained liquidity, and potential for higher returns.

Remember to review your financial plan periodically and adjust as needed to align with your goals and market conditions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 13, 2024

Asked by Anonymous - May 07, 2024Hindi

Money

Iam 30 years old ,and i have an outstanding home loan of 30 lacs, iam earning 20 lacs a year tax free, I have invested in various mfs and my current value of assets are around 30 lacs, iam getting good returns on my investments (average rate of 18%), my question is should I close my loan or continue paying emi of 30k per month? .I have been advised to let my investments grow and keep paying the emis, i might get get married within 2 years and was thinking of becoming loan free before getting married.

Ans: Financial Decision: Pay Off Home Loan or Continue Investing?

At 30, with a tax-free annual income of 20 lacs and investments valued at 30 lacs, you're in a comfortable financial position. Let's analyze your options regarding your outstanding home loan of 30 lacs and whether to continue paying EMIs or close the loan:

Advantages of Continuing EMIs:

Investment Growth: Your investments are performing well with an average rate of return of 18%. By continuing to pay EMIs and letting your investments grow, you can potentially earn higher returns than the interest rate on your home loan.

Liquidity: By keeping your investments intact, you maintain liquidity and flexibility. This can be beneficial in case of any unforeseen expenses or investment opportunities.

Tax Benefits: Home loan EMIs come with tax benefits on both principal repayment and interest paid. By continuing to pay EMIs, you can avail of these tax deductions, reducing your overall tax liability.

Advantages of Closing the Loan:

Debt-Free Status: Paying off your home loan will give you peace of mind and a sense of financial freedom. Being debt-free can reduce stress and provide a strong financial foundation for future goals, including marriage.

Reduced Interest Burden: By closing the loan early, you save on the interest that would have accrued over the remaining loan tenure. This can result in significant savings in the long run.

Improved Credit Score: Being debt-free can positively impact your credit score, which is essential for future financial endeavors like applying for additional loans or credit cards.

Recommendation:

Considering your financial stability, investment performance, and the possibility of marriage within 2 years, it's advisable to prioritize becoming loan-free before tying the knot. Here's why:

Financial Freedom: Eliminating debt before marriage can reduce financial stress and allow you to focus on building a strong foundation for your future family.

Reduced Financial Obligations: Being debt-free gives you more flexibility in managing joint finances with your future spouse and planning for shared goals like buying a house or starting a family.

Long-Term Benefits: While your investments are performing well, becoming debt-free provides a guaranteed return in the form of interest savings and psychological peace of mind.

Final Thoughts:

Considering the advantages of being debt-free and your stable financial situation, it's recommended to prioritize paying off your home loan before getting married. Review your financial plan with a Certified Financial Planner to ensure it aligns with your goals and aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Milind Vadjikar | Answer |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Nov 19, 2024

Question by Rajeev - Nov 19, 2024Hindi

Money

If I close this home loan and repay full 120 lacs, I would be left with Rs 280 lacs. I would go for 80 lacs FD ( 40 lacs for education of kid and 40 lacs for emergency), Rs 20 lacs in renovation of home, Rs 10 lacs in savings ac for liquidity purpose. Remaining Rs 170 lacs I would keep invested in equity based mutual fund for long term growth. What is your advise? Is this better idea?. Please also consider this fact that monthly expenses would be taken care by pension.

Ans: Hello;

You mean remaining 130 L, which you may invest in a mix of equity and hybrid mutual funds with 7-10 year time horizon.

Happy Investing;

Janak Patel |71 Answers |Ask -Follow

MF, PF Expert - Answered on Mar 11, 2025

Question by Shaks - Mar 09, 2025Hindi

Money

Hello Sir, I am 42 years old IT professional. I have one son of 6 years and in class 1. My wife also works and our combined MF portfolio is of 1.1 cr. We both invest 90k per month in various mutual funds. I have purchased one flat which has 60 lacs of home loan and 58000 emi. I have sold my current flat in 80 lacs. I am in confusion of what to do with this money. Should I part close my home loan, should i invest it in mutual funds or should i go for PMS. I am in no hurry to pre close home loan as I can close the loan in next 6-7 years from our salary and my PPF. My goal is to maximize my returns to create wealth as I want to retire by 50. I have monthly expenses of 75K including my child fees for now. Please suggest. Thank you.

Ans: Hi Shaks,

Your query will resonate with many working professionals.

First and foremost, please check/calculate if you have capital gains arising out of the sale of your current flat. This is important for tax implication and will also help make your decision for utilizing the funds.

Lets assume you have some capital gains from this sale, then you can again have to confirm if the capital gains can be utilized without paying tax on it - this is possible if you have purchased the new flat within the last 1 year. If so, then you can utilize/adjust the capital gains towards payments made for the new flat and save tax on it. If you have purchased the new flat earlier than the last 1 year, then you have 2 options - pay tax on the capital gains and then use the funds as you wish OR invest the capital gains amount in NHAI bonds (locked) for the next 5 years (pay tax only on the interest earned).

Once you have sorted the above, you will know what is the amount in hand to make your decision, so lets dive into it.
You have a loan of 60 Lacs and you can manage the EMI from your salaries. Over the next 6-7 years, your salary will also see an increment of approx 7-8% annually, so I suggest you utilize this excess amount each year to prepay/topup your EMI payments. This will help reduce the loan burden over time. At the time of retirement, your loan outstanding can be paid with available options at that time.
You mentioned PPF as an option - I would suggest you do not utilize PPF amount towards this loan closure. The reason is PPF is a completely tax exempt asset and can be utilized well towards retirement income. Of course depends on how much you have accumulated in PPF.

So lets now consider paying the loan amount with the sale proceeds of the current flat. You have a loan today (assuming interest rate applicable is 8-8.5%), which you can manage and you are keen to continue it till retirement, so also recommend you do so. Keep the sale proceed amount available for investment and wealth creation as there are opportunities that can generate returns at a same rate (conservative options) and higher returns (with a slightly higher risk associated).

As you do not have any major liability which is outstanding or cannot be managed, and also you are investing 90k per month in Mutual funds, you can consider wealth creation options for the sale amount available.
PMS is an option but I feel its risks will out weigh the returns in the time frame you have, unless you have a known and trust-worthy option you want to consider.
As you are looking to retire early, at age 50, you should target to create a corpus that will sustain your retirement life (consider at least 30 years post retirement) and your child's education requirements.
Hence my recommendation would be to invest in Mutual Funds and continue with your PPF until retirement. A well constructed portfolio to create a retirement corpus and your child's education requirements would be required.

You can consult a Certified Financial Planner to help you with this plan. They can guide you with your Investments and Retirement planning and provide options to consider and provide advise on risk management (Insurance requirements).

Thanks & Regards
Janak Patel
Certified Financial Planner.

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 17, 2025Hindi

Money

Hi Sir, Am 44 years. I got 30lakhs from property sale as my share. Currently having home loan balance of 32lakhs for next 13years. Should I repay home loan and invest that EMI amount in mutual funds? Suggest me please.

Ans: You are 44 years old. You have received Rs. 30 lakhs from a property sale. You also have a home loan of Rs. 32 lakhs with 13 years left. You are thinking whether to repay the home loan or invest the money.

Let us evaluate both choices. You are in a very important phase of life. You have just 13–16 years to retire. This decision can impact your financial freedom.

Let us do a full 360-degree analysis.

Understanding Your Current Situation
You are 44 years old

You got Rs. 30 lakhs lump sum

You have a home loan of Rs. 32 lakhs

Tenure remaining is 13 years

EMI is assumed to be around Rs. 30,000–35,000

This is a turning point. What you do now will shape your next 20 years.

Pros of Repaying the Home Loan Now
You will become debt-free

EMI burden will go away

Mental peace and sleep improve

You can use EMI for investment

You reduce total interest outgo

Repaying home loan now reduces pressure in future. Especially post-retirement.

It also removes dependency on job.

If something happens to job, no EMI stress.

Cons of Repaying the Loan Now
You lose lump sum liquidity

You may miss higher returns from mutual funds

You lose tax benefits on interest and principal

Loan is closed, but investment growth stops

Once the money is used for loan, it is gone. You can’t pull it back easily.

So we need to evaluate not only emotion but numbers and flexibility.

Pros of Investing the Rs. 30 Lakhs
You get compounding benefit

You can invest in actively managed equity funds

Long-term SIP or STP gives solid growth

You can create future wealth

If the investment gives 12% CAGR over 13 years, the returns may be higher than loan interest.

But growth is not fixed. Equity has ups and downs.

Also, you still have to pay EMI every month.

Cons of Investing and Not Closing the Loan
EMI will continue

Loan will affect your cash flow

Any job loss or illness becomes risk

Mentally, loan feels like a burden

If your income is stable and surplus is high, you may continue loan.

But if income is not guaranteed, debt can disturb your peace.

What to Choose? Loan Repayment or Investment?
Let us see key questions before choosing:

1. Do you have emergency fund?
If no, keep Rs. 3–4 lakhs aside

Never use entire Rs. 30 lakhs to close loan

Always keep 6–12 months buffer

2. Do you have term insurance and health cover?
If not, arrange this before repaying loan

Without protection, family becomes exposed

Use Rs. 50,000–Rs. 1 lakh to cover this

3. Is your job stable? Income regular?
If yes, then partial prepayment + investment is best

If income is risky, full prepayment brings safety

4. Are you mentally stressed due to EMI?
If yes, better to close loan

Peace is more valuable than returns

5. Is this your only property?
If yes, better to own it fully

No one wants to retire with loan on house

Suggested 360-Degree Action Plan
Let’s break Rs. 30 lakhs into 3 parts:

1. Rs. 20 lakhs – Prepay Home Loan
This reduces EMI significantly

Your loan term reduces by 6–7 years

You become close to debt-free

You also save interest

After this step, balance loan is Rs. 12 lakhs

New EMI will be lower or tenure will reduce

Choose “reduce tenure” option with bank

This keeps EMI same and finishes loan early

2. Rs. 8 lakhs – Invest in Mutual Funds
Start monthly STP from liquid fund

Move into equity funds over 12–18 months

Use actively managed funds with strong track record

Avoid index and direct funds

Actively managed regular plans give better review and guidance

Direct funds give no review support and create confusion

Invest only through trusted MFD with CFP

Build corpus for retirement, child’s goal or wealth creation.

This brings growth along with debt reduction.

3. Rs. 2 lakhs – Emergency and Health Safety
Keep Rs. 1.5 lakhs in liquid fund

Use Rs. 50,000 for health/term cover if needed

Always have this buffer

Mutual Fund Growth vs Loan Savings
Many people compare loan interest (say 8%) and MF return (say 12%).

But that is not the full story.

Loan saving is guaranteed.

MF return is not guaranteed.

You must balance both growth and safety.

If you close full loan, you lose future compounding.

If you don’t close loan, you stay under EMI pressure.

Best option is partial loan closure with partial investment.

This gives the best of both.

Tax Benefit Confusion
Home loan gives Section 80C and Section 24 benefit.

But if you don’t need those benefits, it is not worth keeping loan.

Also, in new tax regime, you may not get any tax benefit.

Check your tax regime before deciding.

If in new regime, better to close loan partly.

Final Insights
You are at 44. You still have 13–16 working years left.

You have got a golden chance with Rs. 30 lakhs.

Use this smartly to reduce pressure and grow wealth.

Don’t use full amount for loan or full for mutual fund.

Balance both to create a flexible financial plan.

Avoid using the full amount emotionally.

Also, do not invest in index funds or ETFs.

They only copy the market and give average returns.

Instead, use actively managed funds for long-term wealth.

Don’t go for direct funds also.

They give no service or correction support.

Use regular funds through a Certified Financial Planner.

Do not take new real estate options now.

They add pressure, not peace.

Secure your family with insurance.

Keep emergency fund untouched.

Build your investment plan slowly and steadily.

This strategy will help you be debt-free and wealthy before retirement.

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

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 09, 2025

Asked by Anonymous - Jun 22, 2025Hindi

Money

Dear Sir, I am 46 yr old with a monthly salary of 1.8 lacs . I have a home loan of 14 lacs balance for 5 yrs with an emi of 30k per month. My investment portfolio is MF -30 lacs , FD - 5 lacs, PPF - 20 lacs .Should I close my home loan or increase my MF contribution which is 50 k per month right now.

Ans: You are 46 years old. You are earning Rs. 1.8 lakhs per month. You have a balance home loan of Rs. 14 lakhs. Your EMI is Rs. 30,000 per month. Your current mutual fund investment is Rs. 30 lakhs. Your PPF balance is Rs. 20 lakhs. You also have Rs. 5 lakhs in fixed deposit. Your monthly SIP is Rs. 50,000.

This is a strong foundation. Let us analyse your case from all sides. The goal is to help you take the most effective decision.

Understanding Your Financial Landscape
Age: 46 years

Salary: Rs. 1.8 lakhs per month

EMI: Rs. 30,000 per month

Loan tenure left: 5 years

Loan amount: Rs. 14 lakhs remaining

Mutual Fund investments: Rs. 30 lakhs

PPF corpus: Rs. 20 lakhs

FD corpus: Rs. 5 lakhs

SIP amount: Rs. 50,000 per month

You are already doing a lot of things right.

What the Numbers Say About Your Loan
Your EMI is comfortable at 16.6% of income.

The loan is for a short remaining tenure.

You are already investing well in mutual funds.

You have Rs. 5 lakhs in FD. That adds safety.

Your PPF balance is also strong and stable.

You have maintained good discipline and diversification.

So, you are financially stable. There is no need to rush to close the home loan. Still, let us go deeper and weigh both options carefully.

Evaluating the Option: Closing the Home Loan Early
Many people want to become debt-free early. It gives peace of mind. But we should also consider return on capital.

If you prepay Rs. 14 lakhs now:

You save on interest.

Your monthly EMI will stop.

You will be debt-free.

Emotionally satisfying.

But you lose investment opportunity.

You already have Rs. 30 lakhs in mutual funds. That is a good base. Your PPF is also solid. Your FD gives safety.

But using Rs. 14 lakhs from your assets now will reduce liquidity. That may not be ideal.

Hidden Costs of Prepayment
You may lose tax deduction under section 24(b) on housing loan interest.

Prepayment reduces financial flexibility.

Once money is used to close the loan, it is locked forever.

That money could have grown well in mutual funds.

Therefore, the emotional benefit of being debt-free is not enough to justify early closure for everyone.

Evaluating the Option: Increasing SIPs Instead
You are investing Rs. 50,000 monthly. That is excellent.

If you increase it to Rs. 60,000 or Rs. 70,000 per month:

Your long-term wealth will grow faster.

You use compounding better in mutual funds.

You benefit from rupee cost averaging.

You still keep loan interest benefit.

You enjoy flexibility and liquidity.

You don’t break your emergency buffer.

This is a smarter use of money in the long term.

The Power of Staying Invested
You are already seeing power of mutual fund investing. Rs. 30 lakhs corpus shows consistency.

If you invest more now:

You will benefit more in the next 10–15 years.

Long-term equity funds can beat loan interest.

You can withdraw from mutual funds after your loan ends.

That gives you both assets and peace of mind.

Also, this keeps your emergency money intact. That is very important at your age.

Why Not Withdraw from Mutual Funds or FD to Close Loan
It may be tempting to take Rs. 14 lakhs from your mutual funds or FD to close the loan.

But this is risky.

If you withdraw from mutual funds:

You break compounding.

You may sell at a low point.

You miss long-term growth.

You may pay capital gains tax.

If you use FD:

Your safety buffer is gone.

You may need it for emergencies.

That increases future stress.

So, don’t disturb existing investments. Don’t use FD or MF lump sum for loan closure.

Key Benefits of Continuing the Loan
You keep tax benefits on interest.

You stay disciplined with EMI.

You retain liquidity for goals.

You don’t disturb investment strategy.

You allow your investments to grow further.

This is a smart decision for someone with your profile.

Suitable Asset Allocation Going Forward
Now let us focus on your investments.

At 46, your key goals may be:

Retirement corpus

Children’s higher education (if applicable)

Medical corpus

Long-term wealth growth

Current mix is:

Mutual Funds – Rs. 30 lakhs

PPF – Rs. 20 lakhs

FD – Rs. 5 lakhs

This is already balanced. You can fine-tune it further with the help of a Certified Financial Planner.

Suggested action:

Continue SIP of Rs. 50,000.

Increase it gradually to Rs. 60,000 or Rs. 70,000.

Keep FD as it is.

Don’t withdraw from PPF.

Review your MF mix with a CFP.

Keep 30–40% in hybrid funds.

Keep 50–60% in diversified equity funds.

Avoid small-cap or thematic funds for now.

Why You Should Not Choose Direct Funds
You did not mention whether you use direct plans. But many investors do.

Let’s be clear.

Disadvantages of direct funds:

No personal guidance.

High chance of selecting poor funds.

No help during market fall.

No support for tax planning.

Rebalancing is missed.

Advantages of regular funds through MFD-CFP:

Portfolio is monitored regularly.

Funds are selected with strategy.

Behavioural support during volatility.

Tax-saving strategy included.

Personalised financial plan is offered.

So please prefer regular plans via CFP-led MFD. Value of advice matters more than cost saved.

Why Index Funds Are Not for You
You didn’t mention index funds. Still, let us discuss them.

Why they don’t suit your profile:

They are unmanaged. No active strategy.

They fall fully in market crash.

No exit from bad stocks.

No protection in downturns.

They do not suit risk-averse investors.

Instead, actively managed funds with strong research give better outcomes.

You already have such funds. Stick to them.

What You Should Do Now – Step by Step
Continue your home loan EMI.

Don’t prepay your loan now.

Increase SIPs by Rs. 10,000–Rs. 20,000 per month.

Don’t touch your FD or PPF.

Maintain your emergency corpus.

Review asset allocation with a CFP.

Use only regular mutual fund plans.

Avoid ULIPs, LIC plans or other insurance-linked investments.

This approach builds long-term wealth and keeps you safe.

Finally
You have done well till now. You are disciplined and thoughtful. That is the biggest strength.

By not closing the loan early, you maintain liquidity. You allow your wealth to grow. You reduce tax burden. You increase future flexibility.

By increasing SIPs instead of closing the loan, you create a bigger retirement corpus.

This is the smarter, balanced and effective choice.

Keep working with a qualified Certified Financial Planner. That will help you reach your goals safely and peacefully.

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

Latest Questions

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 23, 2025Hindi

Money

Sir, My age is 45 now. I want to shift my career into IT. what can be done. Also want to retire in 53 age. Salary gross 95500 INR . May I choose mutual fund sip but in whose sip? Sbi, ICICI ?

Ans: Hi,

Please consult a career counsellor to shift your career to IT field.
And yes you can invest in SIP. Please share the amount that you want to invest monthly, your goals and risk behaviour for me to analyse and guide you in a better way.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Question by deepa - Nov 27, 2025Hindi

Money

Dear Sir, I am 60 yrs and just superannuated. I have no pension and the spread of corpus is as follows; - MF & Shares portfolio value is around 1 Cr. SWP of 40000/month initiated. But SIP of 20000/month is also on for next six months - FDs in bank is around 3. Cr and are in Quarterly pay-out interest - PPF of 20 Lac - RBI Bond of 16 lac half yearly interest pay out - PF 90 Lac not withdrawn so far as I can extend this with 1 yr. - Few SA pension 63000 per year Please do suggest if the above can give me expenses to meet 2.5 Lac/m for next 20 yrs Best regards,

Ans: Hi Deepa,

Overall your total networth is 5 crores (including PF, FD, MF, binds etc.) - we will break it into 4 crores (which can be used to fund your retirement) and 1 crore for emergencies.
If invested correctly, this 4 crores can fund you for 20 years and not more than that. You need to invest 4 crores so that they fetch you around 11-12% XIRR to fund your monthly expenses. Also withdraw your PF, liquidate 2 crores from FD and reinvest entirely.

Take the help of a professional who will design your portfolio keeping in mind your monthly requirements for the next 20 years.

Hence please consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 08, 2025Hindi

Money

I am doing 2Lkh monthly SIP as following: 1. Parag Parikh flexi - 50K 2. Tata Small cap - 50K 3. Invesco India Small cap - 50K 4. Quant Mid cap - 20K 5. HDFC Index - 10K 6. Tata Nifty Midcap 150 momentum 50 index - 10K 7. Edelweiss US Tech FOF - 10K My wife is running 30K monthly SIP, 6K in each 1. Quant Small cap 2. Quant Flexi cap 3. Kotak Multi cap 4. JioBlackrock Nifty 50 index 5. JioBlackrock Flexi cap My dad also invest 30K in SIP monthly, 6K in each 1. Parag Parikh flexi 2. Axis small cap 3. Kotak flexi cap 4. Edelweiss mid cap 5. Tata nifty midcap 150 momentum 50 I am investing for retirement with 15 year horizon. Whereas my wife is investing for my daughter’s education and marriage - she is targeting to invest for 17 years (and keep invested till our daughter marriage). My father is 70 and has 15 year investment horizon - to pass on as a gift to his grandkids. Please evaluate the investment strategy.

Ans: Hi,

It is a very good habit and strategy to align your investments with your goals. You, your wife and your father are on the right track. However the funds you described are not in alignment with your goals and highly overlapped one.
It is always better to take the help of a professional when it comes to money.
A single mistake can break your portfolio. Please do work with a dedicated professional to correct your strategy.

Do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Question by shashikant - Nov 24, 2025Hindi

Money

Mujhe 40000 ki sip 5 year ke liye kis fund mai karu ghar lene kebliye

Ans: Hi Shashikant,

It is good that you want to start SIP. Please share other details such as your age, time frame, your risk profile for me to guide you better.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 20, 2025Hindi

Money

Dear Sir, I am 43 year old living in a metro city. I have accumulated MF corpus of 2.45 Cr (2 Cr Equity fund and 45 lakh Debt fund). My PF and Gratuity is around 40 lakh. I own a house and have no liability / loans. I also have a plot worth 30 Lakhs. My monthly expense is 60,000. I want to retire in next 2 years when I will have 3 Cr total corpus. Do I have sufficient retirement corpus? How do reclassify my investments ?

Ans: Hi,
Your current assets are parked correctly and you have saved good wrt your age.
If you retire after 2 years with 3 crore corpus, you can fund yourself forever with 60,000 per month expenses (inflation adjusted).
You need to consult a professional who wi;ll design your overall portfolio for your retirement. It is better to avoid doing the same yourself because any minor mistake can cost your lifestyle.
Hence get in touch with a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Mayank Chandel |2572 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 11, 2025

Question by Prince - Dec 10, 2025Hindi

Career

Sir mene class 12 board cbse se diya usme meri maths me compartment lag gayi fir compartment ka paper aaya usme bhi fail ho Gaya sir mere pass 6 subject the overall paas hogaya fir mene nios se maths pass kar liya , is wajah se meri do marksheet ho gayi hai to me Iit jee ke liye eligbl hoon

Ans: Hello Prince
you are eligible for IIT JEE

Mayank Chandel |2572 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 11, 2025

Question by Archana - Dec 10, 2025Hindi

Career

Hi Sir, My daughter is studying in Grade 5 and following CBSE curriculum. She wishes to join Indian Navy after her schooling. Since we are getting transfer in every three years, it is difficult for her to continue her studies in the same school. So we are planning to take admission in a boarding school with ICSE curriculum. What is your opinion or advice on this?

Ans: Hello Archana ji,
As far as i understand, for defence exams (like NDA, Navy SSR/AA, CDS in future), CBSE has a slight practical advantage. The syllabus of NDA written exam aligns more closely with NCERT (CBSE) textbooks.
Competitive exams like JEE (for Navy B.Tech entry), AISSEE (for Sainik Schools), RIMC, and Olympiads also follow CBSE patterns.

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 11, 2025

Asked by Anonymous - Dec 11, 2025Hindi

Money

Hello Sir, I am 56 yrs old with two sons, both married and settled. They are living on their own and managing their finances. I have around 2.5 Cr. invested in Direct Equity and 50L in Equity Mutual Funds. I have Another 50L savings in Bank and other secured investments. I am living in Delhi NCR in my owned parental house. I have two properties of current market worth of 2 Cr, giving a monthly rental of around 40K. I wish to retire and travel the world now with my wife. My approximate yearly expenditure on house hold and travel will be around 24 L per year. I want to know, if this corpus is enough for me to retire now and continue to live a comfortable life.

Ans: You have built a strong base. You have raised your sons well. They live independently. You and your wife now want a peaceful and enjoyable retired life. You have created wealth with discipline. You have no home loan. You live in your own house. This gives strength to your cash flow. Your savings across equity, mutual funds, and bank deposits show good clarity. I appreciate your careful preparation. You deserve a happy retired life with travel and comfort.

» Your Present Position
Your current financial position looks very steady. You hold direct equity of around Rs 2.5 Cr. You hold equity mutual funds worth Rs 50 lakh. You also have Rs 50 lakh in bank deposits and other secured savings. Your two rental properties add more comfort. You earn around Rs 40,000 per month from rent. You also live in your owned house in Delhi NCR. So you have no rent expense.

Your total net worth crosses Rs 5.5 Cr easily. This gives you a strong base for your retired life. You plan to spend around Rs 24 lakh per year for all expenses, including travel. This is reasonable for your lifestyle. Your savings can support this if planned well. You have built more than the minimum needed for a comfortable retired life.

» Your Key Strengths
You already enjoy many strengths. These strengths hold your plan together.

You have zero housing loan.

You have stable rental income.

You have children living independently.

You have a balanced mix of assets.

You have built wealth with discipline.

You have clear goals for travel and lifestyle.

You have strong liquidity with Rs 50 lakh in bank and secured savings.

These strengths reduce risk. They support a smooth retired life with less stress. They also help you handle inflation and medical costs better.

» Your Cash Flow Needs
Your yearly expense is around Rs 24 lakh. This includes travel, which is your main dream for retired life. A couple at your stage can keep this lifestyle if the cash flow is planned well. You need cash flow clarity for the next 30 years. Retirement at 56 can extend for three decades. So your wealth must support you for a long period.

Your rental income gives you around Rs 4.8 lakh per year. This covers almost 20% of your yearly spending. This reduces pressure on your investments. The rest can come from a planned withdrawal strategy from your financial assets.

You also have Rs 50 lakh in bank deposits. This acts as liquidity buffer. You can use this buffer for short-term and medium-term needs. You also have equity exposure. This can support long-term growth.

» Risk Capacity and Risk Need
Your risk capacity is moderate to high. This is because:

You own your home.

You have rental income.

Your children are financially independent.

You have large accumulated assets.

You have enough liquidity in bank deposits.

Your risk need is also moderate. You need growth because inflation will rise. Travel costs will rise. Medical costs will increase. Your lifestyle will change with age. Your equity portion helps you beat inflation. But your equity exposure must be managed well. You should avoid sudden large withdrawals from equity at the wrong time.

Your stability allows you to keep some portion in equity even during retired life. But you should avoid excessive risk through direct equity. Direct equity carries concentration risk. A balanced mix of high-quality mutual funds is safer in retired life.

» Direct Equity Risk in Retired Life
You hold around Rs 2.5 Cr in direct equity. This brings some concerns. Direct equity needs frequent tracking. It needs research. It carries single-stock risk. One mistake may reduce your capital. In retired life, you need stability, clarity, and lower volatility.

Direct funds inside mutual funds also bring challenges. Direct funds lack personalised support. Regular plans through a Mutual Fund Distributor with a Certified Financial Planner bring guidance and strategy. Regular funds also support better tracking and behaviour management in volatile markets. In retired life, proper handholding improves long-term stability.

Many people think direct funds save cost. But the value of advisory support through a CFP gives higher net gains over long periods. Direct plans also create more confusion in asset allocation for retirees.

» Mutual Funds as a Core Support
Actively managed mutual funds remain a strong pillar. They bring professional management and risk controls. They handle market cycles better than index funds. Index funds follow the market blindly. They do not help in volatile phases. They also offer no risk protection. They cannot manage quality of stocks.

Actively managed funds deliver better selection and risk handling. A retiree benefits from such active strategy. You should avoid index funds for a long retirement plan. You should prefer strong active funds under a disciplined review with a CFP-led MFD support.

» Why Regular Plans Work Better for Retirees
Direct plans give no guidance. Retired investors often face emotional decisions. Some panic during market fall. Some withdraw heavily during market rise. This harms wealth. Regular plan under a CFP-led MFD gives a relationship. It offers disciplined rebalancing. It improves long-term returns. It protects wealth from poor behaviour.

For retirees, the difference is huge. So shifting to regular plans for the mutual fund portion will help long-term stability.

» Your Withdrawal Strategy
A planned withdrawal strategy is key for your case. You should create three layers.

Short-Term Bucket
This comes from your bank deposits. This should hold at least 18 to 24 months of expenses. You already have Rs 50 lakh. This is enough to hold your short-term cash needs. You can use this for household costs and some travel. This avoids panic selling of equity during market downturn.

Medium-Term Bucket
This bucket can stay partly in low-volatility debt funds and partly in hybrid options. This should cover your next 5 to 7 years. This helps smoothen withdrawals. It gives regular cash flow. It reduces market shocks.

Long-Term Bucket
This can stay in high-quality equity mutual funds. This bucket helps beat inflation. This bucket helps fund your travel dreams in later years. This bucket also builds buffer for medical needs.

This three-bucket strategy protects your lifestyle. It also keeps discipline and clarity.

» Handling Property and Rental Income
Your properties give Rs 40,000 monthly rental. This helps your cash flow. You should maintain the property well. You should keep some funds aside for repairs. Do not depend fully on rental growth. Rental yields remain low. But your rental income reduces pressure on your investments. So keep the rental income as a steady support, not a primary source.

You should not plan more real estate purchase. Real estate brings low returns and poor liquidity. You already own enough. Holding more can hurt flexibility in retired life.

» Planning for Medical Costs
Medical costs rise faster than inflation. You and your wife need strong health coverage. You should maintain a reliable health insurance. You should also keep a medical fund from your bank deposits. You may keep around 3 to 4 lakh per year as a buffer for medical needs. Your bank savings support this.

Health coverage reduces stress on your long-term wealth. It also avoids large withdrawals from your growth assets.

» Travel Planning
Travel is your main dream now. You can plan your travel using your short-term and medium-term buckets. You can take funds annually from your liquidity bucket. You can avoid touching long-term equity assets for travel. This approach keeps your wealth stable.

You should plan travel for the next five years with a budget. You should adjust your travel based on markets and health. Do not use entire gains of equity for travel. Keep travel budget fixed. Add small adjustments only when needed.

» Inflation and Lifestyle Stability
Inflation will impact lifestyle. At Rs 24 lakh per year today, the cost may double in 12 to 14 years. Your equity exposure helps you beat this. But you need careful rebalancing. You also need disciplined review with a CFP-led MFD. This will help you manage inflation and maintain comfort.

Your lifestyle is stable because your children live independently. So your cash flow demand stays predictable. This makes your plan sustainable.

» Longevity Risk
Retirement at 56 means you may live till 85 or 90. Your plan should cover long years. Your total net worth of around Rs 5.5 Cr to Rs 6 Cr can support this. But you need a proper drawdown strategy. Avoid high withdrawals in early years. Keep your travel budget steady.

Do not depend on one asset class. A mix of debt and equity gives comfort. Keep your bank deposits as cushion.

» Succession and Estate Planning
Since you have two sons who are settled, you can plan a clear will. Clear distribution avoids conflict. You can also assign nominees across accounts. You can also review your legal papers. This gives peace to you and your family.

» Summary of Your Retirement Readiness
Based on your assets and cash flow, you are ready to retire. You have enough wealth. You have enough liquidity. You have enough income support from rent. You also have good asset mix. With proper planning, your lifestyle is comfortable.

You can retire now. But maintain a disciplined withdrawal strategy. Shift more reliance from direct equity into professionally managed mutual funds under regular plans. Keep your liquidity strong. Review once every year with a CFP.

Your wealth can support your travel dreams for many years. You can enjoy retired life with confidence.

» Finally
Your preparation is strong. Your intentions are clear. Your lifestyle needs are reasonable. Your assets support your dreams. With a balanced plan, steady review, and mindful spending, you can enjoy a comfortable retired life with your wife. You can travel the world without fear of running out of money. You deserve this peace and joy.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Samraat Jadhav |2507 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 11, 2025

Question by Saurav - Dec 11, 2025Hindi

Money

Kindly advice i have 1500 shares of NMDC @ 60 what should i do

Ans: Profit making Company with High ROCE and Low PE, 80 may be a good price to book profits. if you are a long term investor and can hold for 10yrs then dont sell.

Samraat Jadhav |2507 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 11, 2025

Asked by Anonymous - Dec 11, 2025Hindi

Money

Regarding benefits and transfer of 1700 partly paid share I would like to inquiry about the 1700 shares of jindal vijay nagar steel that were subscribed/paid for earlier Am i eligible to receive any benefits, dividend or right associated with these partly paid shares..? Is there any rules, procedure,or provision through which these partly paid shares can be transferred and registered in my name Kindly provide guidance on the process and the required documents,if applicable I shall be grateful for your assistance Thankyou Warm regards Girish Bhatnagar

Ans: Girish ji, please connect with kfintech for the details. You would get the right information from them as they are the registrar for the issue.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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