Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Investing for a Secure Future: 24-Year-Old Needs Advice

Milind

Milind Vadjikar  |1232 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 07, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Oct 07, 2024Hindi
Listen
Money

I am 24 years old and earn a monthly salary of Rs.65,000. I am interested in investing some of my funds for future financial security and am also planning to marry in two years. As I have no prior knowledge of investment, I would greatly appreciate guidance on this matter.

Ans: Hello;

First and foremost buy a good term life cover including riders for critical care and accident benefit.

Ensure that you can top-up the sum assured later when you grow your responsibilities after marriage.

For retirement planning you should consider investing in NPS. If your office provides it well and good but otherwise also you can open NPS account and contribute regularly for financing your retirement. It's an E-E-E type of scheme. Charges are quite low and you can decide to select allocation to the asset classes like equity, corporate debt or sovereign bonds as per your risk tolerance. It allows limited withdrawal before 60.

If you decide to contribute to NPS per month an amount of 20 K, it will grow into a corpus of 6.51 Cr by the time you are 60 years of age.(A modest return of 9% is considered)

For all other goals such as marriage, house, kid's education, car, vacation you can use mutual funds as your mode of investments.

If you do a monthly sip of say 15 K into a pure equity mutual fund then at the end of 5 years you may expect to receive a corpus of 12.72 L considering moderate return of 13%.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |8449 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 22, 2024

Asked by Anonymous - Jun 25, 2024Hindi
Listen
Money
I have 20 lakhs of funds in my bank account....I am 26 years of age....getting married in 4 months.... I want to invest this amount so that it grows and give nice returns
Ans: You are getting married in four months. It is an exciting time. You also have Rs. 20 lakhs to invest. This amount can be used to secure your future. It can also help you achieve your financial goals.

Short-Term Needs
First, consider your short-term needs. You may have wedding expenses. You might need an emergency fund. It is essential to keep some money aside for these needs.

Emergency Fund
An emergency fund is crucial. It should cover six months of expenses. This fund should be in a liquid investment. Examples include savings accounts and fixed deposits. This will ensure you have easy access to funds when needed.

Diversified Portfolio
A diversified portfolio reduces risk. It also maximizes returns. Allocate your funds across various assets. Here are some options:

Mutual Funds
Mutual funds are a great investment. They offer diversification. Actively managed funds are preferable. They are managed by experienced fund managers. This can provide better returns compared to index funds.

Debt Funds
Debt funds are safer than equity funds. They provide steady returns. They are ideal for short to medium-term goals. Examples include corporate bond funds and short-term debt funds.

Equity Funds
Equity funds offer high returns. They are suitable for long-term goals. They invest in stocks of companies. Examples include large-cap and multi-cap funds. These funds are managed by experts. They can help you grow your wealth.

Regular Monitoring
Investments need regular monitoring. Keep track of your portfolio. Make adjustments as needed. This will ensure your investments are aligned with your goals.

Avoiding Common Pitfalls
Avoid Direct Funds
Direct funds seem appealing. They have lower expense ratios. However, they require more effort. You need to choose and manage your investments. This can be risky without proper knowledge. It is better to invest through a certified financial planner (CFP). They can provide professional advice.

Avoid Index Funds
Index funds have lower fees. But they also offer average returns. They follow the market index. Actively managed funds can outperform the market. They are managed by experts. They offer higher returns.

Tax Planning
Tax planning is crucial. It helps you save money. Invest in tax-saving instruments. Examples include ELSS (Equity Linked Savings Scheme). They offer tax benefits under Section 80C. This can help you save on taxes and grow your wealth.

Retirement Planning
It is never too early to plan for retirement. Start investing in retirement funds. This will ensure a comfortable future. Examples include National Pension Scheme (NPS). They offer good returns and tax benefits.

Professional Guidance
A certified financial planner can provide professional advice. They can help you create a personalized investment plan. They consider your financial goals and risk tolerance. They also help you make informed decisions.

Final Insights
Investing Rs. 20 lakhs wisely can secure your future. Start with an emergency fund. Diversify your portfolio. Choose mutual funds, debt funds, and equity funds. Avoid direct and index funds. Focus on tax and retirement planning. Regularly monitor your investments. Seek guidance from a certified financial planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8449 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Listen
Money
Hi sir I need your help I am 26yr old female, i might get married in another 1 year, i have 0 rs of savings. I have to start savings, i can save upto 20k+10k per month. 20k i wish to save for 1 year for my marriage 10k i wish to save for future Please help me to start investing
Ans: Congratulations on taking the first step towards financial planning! Let's create a simple and effective plan for your short-term and long-term goals.

Short-Term Savings for Marriage (Rs. 20,000 per month)
Your priority is to save for your upcoming marriage in a year. Given the short time frame, safety and liquidity are essential.

Recurring Deposits (RDs):

Open an RD account in a bank.
It offers fixed returns and is safe.
This will help you accumulate your savings steadily.
Deposit Rs. 20,000 monthly for a year.
At the end of the year, you'll have a lump sum amount with some interest.
High-Yield Savings Account:

Choose a bank offering high-interest rates on savings accounts.
Deposit Rs. 20,000 monthly.
This provides easy access and liquidity for your wedding expenses.
Long-Term Savings for Future (Rs. 10,000 per month)
For your long-term savings, let's focus on building wealth over time. Diversification is key here.

Systematic Investment Plan (SIP) in Mutual Funds:
Large Cap Mutual Funds (40%):
Invest in well-established companies.
Offers stability with moderate returns.
Mid Cap Mutual Funds (30%):
Invest in medium-sized companies.
Offers higher growth potential.
Small Cap Mutual Funds (20%):
Invest in smaller companies.
Offers high growth potential but with higher risk.
Debt Funds (10%):
Provides stability and reduces overall risk.
Invest in government and corporate bonds.
Investment Strategy
Monthly Allocation:

Large Cap Funds: Rs. 4,000
Mid Cap Funds: Rs. 3,000
Small Cap Funds: Rs. 2,000
Debt Funds: Rs. 1,000
Choosing Funds:

Select funds with a strong performance history.
Diversify within each category for better risk management.
Consider investing through a Certified Financial Planner for professional advice and management.
Additional Tips
Emergency Fund:

Start building an emergency fund.
Save at least 3-6 months' worth of expenses.
This provides a financial cushion for unexpected events.
Health Insurance:

Ensure you have adequate health insurance.
It protects you from high medical costs and ensures financial stability.
Regular Review:

Review your investments every six months.
Adjust your portfolio based on performance and changes in your financial situation.
Final Insights
Starting early with a disciplined savings and investment plan is crucial. By following this strategy, you can achieve your short-term goal of saving for your marriage and also build a strong financial foundation for your future. Consistency, regular review, and professional guidance will help you stay on track and reach your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4533 Answers  |Ask -

Career Counsellor - Answered on May 16, 2025

Career
Sir, My son got 81.65percentile in JEE mains , with category SC rank 15531 and CRL of 272000 , please suggest whether he will get any NIT,IIITs in electronic or electrical branch
Ans: Vijayakumar Sir, Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Son's Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your Son's category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if he is open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If he is open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches your son is interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your son's expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

I also suggest you have 3-4 more backups instead of relying only on JEE/JoSAA.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your son's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Ramalingam

Ramalingam Kalirajan  |8449 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 2025

Asked by Anonymous - May 16, 2025
Money
I am a 35-year-old single woman working in the IT sector with a monthly income of 1.2 lakh and moderate savings of Rs 5 lakh. I am investing 10k per month in SIPs. I want to start planning for early retirement and possibly buying a home. Should I continue to invest in SIPs or something else?
Ans: At 35, you are in your asset building years.

Your income of Rs. 1.2 lakh monthly gives you a strong base to build wealth.

Being single gives you more flexibility in financial decisions.

Planning early retirement is a mature step. Many delay this thought.

You already invest Rs. 10k monthly. That shows good discipline.

Your savings of Rs. 5 lakh is a good start. But needs enhancement.


Retirement Planning Clarity
Early retirement needs higher corpus. Time to plan backward.

You must fix a retirement age. Also fix annual income needed post-retirement.

Factor inflation in lifestyle costs.

Consider medical costs too. Inflation is high in health sector.

Retirement planning works better when done with multiple buckets.

Equity, debt, contingency, and health must work together.

SIP as a Wealth Building Tool

SIP is a smart and proven method.

Continue your Rs. 10k SIPs. But increase when income grows.

SIP gives rupee cost averaging. That reduces entry timing risk.

SIPs offer compounding when held long.

Avoid index funds. They copy index. They lack human intelligence.

Index funds perform average. They don’t beat market.

Choose actively managed funds. They aim better returns.

Pick regular plans via MFD guided by CFP. It adds value.

Direct plans lack guidance. It becomes DIY investing.

DIY investing may create confusion and mistakes.

Regular plans come with expert hand-holding.

CFP-driven guidance keeps your portfolio aligned to goals.

Cash Flow Management and Budgeting

Your rent is stable. Expenses are under control.
Groceries and bills total Rs. 16k. You save well.
You should track monthly spending patterns.

Try to save at least 30% of your income monthly.

Automate savings. Do SIPs right after salary credit.

Create a simple budget. Set targets on each spending head.



Watch for lifestyle inflation.



Don’t let spending rise with income.



Direct bonus or hikes to increase investments.



Emergency Fund and Protection Planning

Keep 6 months’ expenses as emergency fund.



Include rent, groceries, bills, and SIPs in this amount.



It should stay in liquid funds or savings account.



Avoid using equity or SIPs for emergencies.



Buy health insurance. Don’t depend only on employer cover.



Health cover must be minimum Rs. 10 lakh.



Upgrade later to super top-up if needed.



Buy term insurance too. Even if no dependent, it helps future planning.



Goal Clarity: Early Retirement and Home

Don’t mix home buying and retirement corpus.



Separate goals need separate plans.



Decide which is priority – early retirement or home.



If home is first, allocate budget.



Keep EMI within 35% of your income.



Avoid loans that eat into SIP potential.



If early retirement is top goal, delay home purchase.



Use rent benefit to invest more.



Don’t lock money in real estate. It reduces liquidity.



Real estate gives poor returns post inflation and tax.



Investment Portfolio Strategy

Rs. 5 lakh savings can be deployed in mutual funds.



Don’t keep in idle accounts unless it’s emergency fund.



Allocate 70% to equity mutual funds. 30% to debt mutual funds.



This gives stability and growth.



Use actively managed equity mutual funds.



Choose multi-cap, large-mid, and flexi-cap categories.



Use short duration debt funds for debt portion.



Review portfolio yearly. Don’t churn often.



Always assess risk tolerance before allocating.



Take guidance from a CFP. Not self-made decisions.



DIY investing often lacks proper risk management.



Tax Optimisation Strategy

Use Section 80C to save tax.



ELSS funds help tax savings with wealth creation.



Avoid locking money in tax-saving FDs.



ELSS has lock-in but gives better returns than PPF.



Invest in NPS if retirement is key goal.



NPS gives extra benefit under Sec 80CCD(1B).



Review tax-saving options every year.



Don’t use insurance as investment.



Avoid ULIPs or traditional endowment plans.



These give poor returns after inflation.



They mix insurance and investment. That harms both.



Keep insurance and investment separate.



Behavioural Discipline and Investment Psychology

Early retirement needs patience.



Stay invested in SIPs. Avoid stopping in market falls.



Don’t check daily returns.



Judge mutual funds by long-term performance.



Avoid reacting to market noise.



Trust the long-term power of equity.



Follow your plan. Don’t follow trends.



Stay away from hot tips and penny stocks.



Don’t let emotions control money decisions.



Behavioural mistakes reduce long-term wealth.



Stay connected with a Certified Financial Planner.



Periodic Goal Review and Adjustments

Do yearly review of all goals.



Adjust your SIPs if salary increases.



Shift risk as you age.



Equity exposure must reduce near retirement.



Review funds performance once a year.



Rebalance portfolio if needed.



Align portfolio with goal time horizon.



Maintain documents and records.



Track insurance, SIPs, tax, and net worth yearly.



Finally

Continue SIPs and increase it to Rs. 20k monthly.



Keep emergency fund ready. Buy health and term insurance.



Prioritise retirement over house for now.



Don’t mix investment with insurance.



Avoid index funds and direct funds.



Use regular mutual funds via MFD with CFP guidance.



Review plan yearly with a Certified Financial Planner.



Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8449 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 2025

Asked by Anonymous - May 15, 2025
Money
Hi Guruss, Good evening to all of you, I'm 31 yr old. I have made some risky investments, 90k in MF, and 23.4 L in stocks. I am unmarried with no loans, i live in rented house whose rent in 22k, expenses are 16k a month grocery + bills, no medical liability for now, I want to attain financial freedom as soon as possible. What would be your guidance to achieve goal of 3cr in next 5-6 yrs. Kindly suggest.
Ans: You are 31 and investing early. That is a big advantage.

You also have no loans. That gives you freedom.

You aim to reach Rs. 3 crore in 5–6 years. This is bold but possible with discipline.

Let’s break this down step-by-step with a detailed plan.



Assessing Your Present Financial Situation

Your total investments are around Rs. 24.3 lakhs.



Your monthly rent is Rs. 22,000. Your living expenses are Rs. 16,000.



This means your basic expenses are Rs. 38,000 monthly.



If you earn Rs. 1.5 lakhs or more, you can save over Rs. 1 lakh monthly.



Your current portfolio is high-risk, tilted toward equity and stocks.



This is fine for wealth creation, but you need balance too.



High growth needs high returns. But without control, it may backfire.



Goal of Rs. 3 crore in 5–6 years means you need sharp returns and focused investing.



Understanding the Goal More Clearly

Rs. 3 crore in 5–6 years is an ambitious target.



For this, you need both high savings and high returns.



Even a 20% return won’t be enough unless you save big.



So, it’s not just investing, saving aggressively is the key.



We will also need to reduce lifestyle inflation in the meantime.



You have no dependents. This is the right time to take calculated risks.



But don’t go too aggressive in stocks without a strategy.



Crafting Your Ideal Saving Pattern

Save at least Rs. 1 lakh every month for this goal.



Avoid buying gadgets or unnecessary upgrades in lifestyle.



Review all monthly spending. Cut what is not useful.



Put a target on fixed savings. Make it automatic through SIPs.



Track your income and expenses every week or every month.



Even saving Rs. 1.2 lakh per month with 14% returns helps you hit the target.



Building a Solid Investment Structure

Your equity holding is already large. Now bring structure to it.



You need a balanced mutual fund portfolio now.



Mix large cap, flexi cap, and small/mid cap categories.



Avoid sector funds or thematic bets now. They bring uneven risk.



Avoid direct stocks if you lack regular review time and market knowledge.



Stick to regular mutual funds. They offer better guidance and review by experts.



Direct mutual funds lack the advisory edge. Regular plans via Certified Financial Planner are better.



A Certified Financial Planner also helps align your risk to your goals.



Regular plans are better for most investors aiming for financial freedom.



Avoid index funds. They don’t generate alpha during sideways or falling markets.



Actively managed funds outperform in such conditions with better allocation.



Do not depend only on equity stocks. Add mutual funds for consistency.



Don’t invest in annuities. They are illiquid and give poor returns.



Avoid FDs too. They are not tax-efficient and will not beat inflation.



Instead, invest with a proper asset allocation model.



Insurance and Emergency Planning

You have no medical liabilities today. Still, take a health insurance policy.



A single health event can disturb your entire goal planning.



Buy a term insurance policy too. It’s cheap at your age.



Protecting your income is as important as growing it.



Emergency fund is not visible in your current setup.



Keep at least Rs. 2–3 lakhs in a separate liquid account.



Do not use equity for emergencies. Use savings account or liquid funds.



Review Your Stock Portfolio Now

Rs. 23.4 lakh is in stocks. You need to analyse them deeply.



Check if they are quality companies with strong balance sheets.



Exit the ones that are speculative or not performing.



You can shift some of this money into mutual funds slowly.



That way, you reduce risk while keeping return expectations realistic.



Get help from a Certified Financial Planner to review your stock list.



Emotional attachment to stocks should be avoided.



Stick with companies that have strong earnings visibility and leadership.



Track quarterly results of stocks. Act fast if fundamentals worsen.



Planning Your SIP Strategy for Wealth Growth

Monthly SIPs are your biggest weapon now.



Begin Rs. 1 lakh SIP in a structured mutual fund portfolio.



Divide across flexi cap, large and mid cap, and small cap.



Avoid NFOs or new funds. Stick with consistent performers.



Set SIP date closer to your salary date to avoid spending temptations.



Review funds once a year. Don’t change them every few months.



Stick to long-term winners and remove underperformers after two years.



Use STP (Systematic Transfer Plan) if you have lumpsum in savings.



Tax Efficiency Matters

Keep taxes in mind while redeeming funds in future.



LTCG from equity funds above Rs. 1.25 lakh is taxed at 12.5%.



STCG from equity funds is taxed at 20%.



For debt funds, all capital gains are taxed as per your tax slab.



Plan redemptions based on tax calendar and goal timelines.



Don’t let taxes eat your compounding advantage.



Asset Allocation Strategy for Long-Term

Do not keep all money in one basket.



At least 10% should be in safe liquid assets.



Keep 70–80% in mutual funds across categories.



Balance the rest in short-term instruments for liquidity.



Gold should be avoided for this particular goal. It is not growth-friendly.



Real estate is not recommended. High ticket size and low liquidity are issues.



Regular Portfolio Review Is Must

Review your full portfolio once every six months.



Rebalance if one asset grows too large or underperforms badly.



Track goals, savings, investments, and expenses every quarter.



Don’t chase returns. Stick with plan and discipline.



Take support of a Certified Financial Planner to help you stay on track.



Building Multiple Income Streams

You are young. Explore second income streams.



Freelance work, weekend projects or consulting can help boost savings.



These incomes should go directly into SIPs or investments.



Avoid spending extra income. Let it power your wealth engine.



Build income streams around your skills or hobbies.



Finally

You are starting at the right time. That itself is a great asset.



You have no loans, no major expenses, and full freedom to save.



But without structure, your efforts may not give results.



Bring discipline, monthly saving habits, and smart investing.



Rs. 3 crore in 5–6 years is tough, but not impossible.



Use mutual funds wisely. Review stocks. Control lifestyle inflation.



Avoid index funds, annuities, and real estate.



Avoid direct mutual funds. Choose regular funds through a CFP for better tracking.



Take health cover and build emergency fund.



Keep working towards this goal with patience and monitoring.



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

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x