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Ramalingam

Ramalingam Kalirajan  |9227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 16, 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
Asked by Anonymous - May 16, 2025
Money

I am 30 year old. My current in hand salary is 60k and additional 18k once in quarter. I have a home loan of 25 lac with monthly EMI of 18257 and have borrowed 11 lac from brother -in-law and paying 23k every month to him as well. Please help me how should I start with investment in MF and manage my financial to gain stability

Ans: You have taken some responsible steps already. Owning a house at 30 is a big milestone. It shows commitment and maturity. You also show discipline by repaying your brother-in-law regularly. Let us now take a 360-degree view of your financial life. The goal is to build stability and begin investing in mutual funds wisely.

Here is a detailed and structured plan for you.

 
 
 

Income and Cash Flow Assessment
Your in-hand monthly salary is Rs. 60,000. Quarterly, you get Rs. 18,000 extra.

 
 
 

That works out to around Rs. 65,000 per month on average.

 
 
 

You are paying Rs. 18,257 for your home loan.

 
 
 

You also pay Rs. 23,000 to your brother-in-law monthly.

 
 
 

Together, your monthly loan outgo is Rs. 41,257.

 
 
 

You are left with around Rs. 23,000 per month for all expenses and savings.

 
 
 

At this stage, the cash flow is tight. But not unmanageable.

 
 
 

Focus is now on smart budgeting, not just saving.

 
 
 

Let’s now plan to slowly move towards surplus creation.

 
 
 

Household Budget Rebalancing
Start with tracking every rupee you spend for three months.

 
 
 

Use simple notebooks or mobile apps for this.

 
 
 

Identify 2–3 non-essential spending areas.

 
 
 

Cut those expenses gradually.

 
 
 

Target to reduce monthly spends by Rs. 4,000–5,000.

 
 
 

This will help create investment capacity.

 
 
 

You can then begin your mutual fund journey smoothly.

 
 
 

Loan Repayment Priority Strategy
Between the two loans, your brother-in-law’s loan is priority.

 
 
 

It is not interest-based but emotionally important.

 
 
 

Keep paying him Rs. 23,000 consistently.

 
 
 

Do not reduce this until fully repaid.

 
 
 

After it is cleared, redirect this EMI into investments.

 
 
 

That Rs. 23,000 will become your wealth engine.

 
 
 

You may consider prepaying home loan slowly after that.

 
 
 

But don’t rush. Use part for investment too.

 
 
 

Emergency Fund First
Before any investments, set aside safety fund.

 
 
 

You must build emergency savings of at least Rs. 40,000.

 
 
 

Start by saving Rs. 3,000 per month till you reach that.

 
 
 

Keep this in a bank RD or sweep-in FD.

 
 
 

Do not touch this unless it’s truly urgent.

 
 
 

This will help you avoid personal loans or credit card debt.

 
 
 

Health and Life Cover
If not already covered, get a Rs. 5 lakh health cover.

 
 
 

Choose a family floater policy if married.

 
 
 

Buy from reputed insurer with good claim ratio.

 
 
 

Premium will be around Rs. 500 per month.

 
 
 

Also check if you have life insurance.

 
 
 

If not, get a term plan of Rs. 50 lakh.

 
 
 

Cost will be around Rs. 500 to Rs. 800 per month.

 
 
 

Avoid any ULIP or money-back plans.

 
 
 

Beginning Mutual Fund Investment
Start SIPs only after emergency fund and basic covers.

 
 
 

Target SIP of Rs. 2,000–3,000 per month to begin.

 
 
 

As your brother-in-law loan ends, increase SIP step-by-step.

 
 
 

Prefer well-managed active mutual funds.

 
 
 

Actively managed funds have professional fund managers.

 
 
 

They can outperform markets with expertise.

 
 
 

Index funds only mimic the market.

 
 
 

They do not react to changing trends.

 
 
 

This leads to limited alpha generation.

 
 
 

Actively managed funds offer better risk management.

 
 
 

Work with a Mutual Fund Distributor with CFP credentials.

 
 
 

They bring personalisation and regular review to your portfolio.

 
 
 

Direct mutual funds don’t offer this guidance.

 
 
 

Direct route also needs your time and market knowledge.

 
 
 

For salaried investors like you, guided support helps.

 
 
 

Your focus should be on building consistent long-term wealth.

 
 
 

Suggested Investment Allocation Once Loan Ends
Once brother-in-law loan is cleared, use that Rs. 23,000 well.

 
 
 

Split it into: Rs. 3,000 emergency fund, Rs. 2,000 insurance, Rs. 18,000 SIPs.

 
 
 

This will create strong financial muscle over time.

 
 
 

Avoid putting all in one type of fund.

 
 
 

Use a mix of large-cap, flexi-cap and hybrid funds.

 
 
 

Let a CFP-backed advisor design your fund mix.

 
 
 

Do not chase returns or trends.

 
 
 

Stay invested through ups and downs.

 
 
 

Review your SIPs yearly.

 
 
 

Increase them whenever your salary rises.

 
 
 

Avoiding Common Pitfalls
Do not take personal loans for investing.

 
 
 

Avoid credit card debt at all costs.

 
 
 

Do not try to time the market.

 
 
 

Avoid chit funds or unregulated schemes.

 
 
 

Avoid investing in schemes without proper reading.

 
 
 

Do not buy mutual funds from banks.

 
 
 

Bank executives sell based on their targets.

 
 
 

Always check if your advisor is a CFP.

 
 
 

Goal Setting Approach
Have clear goals before investing.

 
 
 

Are you saving for child, retirement, or wealth creation?

 
 
 

Write them down. Assign rough timelines.

 
 
 

This will help you choose right fund categories.

 
 
 

Having goals keeps you motivated to invest.

 
 
 

Stay away from FOMO-based investments.

 
 
 

Let your goals guide you, not markets.

 
 
 

Tax Consideration and Smart Planning
Use SIPs in equity mutual funds for tax efficiency.

 
 
 

Gains after one year are long-term capital gains.

 
 
 

You get exemption up to Rs. 1.25 lakh per year.

 
 
 

Beyond that, gains are taxed at 12.5%.

 
 
 

If redeemed before a year, STCG is taxed at 20%.

 
 
 

Don’t withdraw unless needed. Let compounding work.

 
 
 

Plan redemptions around goals to save tax.

 
 
 

Finally
You are in a decent position for your age.

 
 
 

Focus on clearing the family loan first.

 
 
 

Start slow and steady with SIPs.

 
 
 

Build emergency savings for confidence.

 
 
 

Protect yourself with health and term covers.

 
 
 

Work with a Mutual Fund Distributor having CFP qualification.

 
 
 

Avoid index funds and direct mutual fund route.

 
 
 

Keep your investments simple and long-term focused.

 
 
 

Avoid real estate or exotic products at this stage.

 
 
 

Regular saving with guidance will lead to stability.

 
 
 

You have already made smart choices. Now sharpen them.

 
 
 

Stay consistent and review yearly. You will see great results.

 
 
 

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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Hello sir, I am 23 years old, just graduated and starting my first job next week. I will be earning around 90k per month and I live at our own house (so no rent). I am planning on investing in MF but don't know where to start or how much to invest. Our monthly expense is roughly 20k and I also have an education loan which I have to start paying soon. I have a goal of saving 1 cr before 30. Kindly let me know where to invest and how much to invest.
Ans: Hello, glad to know that you are interested about investments at such a young age
Assuming 90K is your pre tax income , you will get around 80K in hand post taxes and post EPF
If your house expenses and education loan is 20K + 20K ( assuming ) = 40K , you have an investable surplus of 40K
You can follow the below strategy that I often use for young investors :
Mid cap - 30%
Small cap - 30%
Multi cap - 20%
Emergency Fund ( Payment of term insurance premiums , medical insurance premium and travel fund ) - 20%

If you keep doing this for the next 7yrs and utilise the entire emergency fund on the way, you shall accumulate Rs.44L by the age of 30yrs at 13% XIRR.

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Do let me know your thoughts on the same
https://www.linkedin.com/in/ca-vivek-lala-21a2038b?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

..Read more

Ramalingam

Ramalingam Kalirajan  |9227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 05, 2025

Asked by Anonymous - May 14, 2025
Money
I have an income of 1 lakh, i am 28 years old. My family has a personal loan of 5 lakhs and home loan of 12 lakhs pending. I want to start investing, risk appetite is medium. I also want to purchase a house. Currently i have savings of 1.5 lakhs. Currently i am chipping in some amount for loan closure. But largely i have 30- 40 k to save. Please advise MFs i should invest in or any other means also the bifurcation of amount in various SIPs.
Ans: At 28, you are young and have a strong financial future ahead.

Your income is stable, and your intentions are positive. Let us build a full plan around your current situation.

Income and Savings Snapshot
You earn Rs. 1 lakh monthly.

After helping with family loans, you can save Rs. 30,000–40,000.

You have Rs. 1.5 lakh in savings now.

You also plan to buy a house in future.

You are supporting your family’s personal and home loans.

Your risk appetite is medium. So balanced approach is ideal.

Loan Repayment: Step by Step View
Family personal loan of Rs. 5 lakh is short-term and expensive.

Home loan of Rs. 12 lakh is long-term. Interest is lower.

Support loan repayment, but don’t use all your savings.

Emergency fund is more important now.

Help only to the level where your savings are not wiped out.

Let family members also contribute proportionally if possible.

Focus more on investing than complete prepayment now.

Maintain a balance between debt support and wealth creation.

Emergency Fund Comes First
Emergency fund gives you stability. Target Rs. 2 lakh for start.

Right now, you have Rs. 1.5 lakh saved.

Keep this in bank FD or liquid fund.

Don’t invest this amount in risky funds.

Emergency fund is not an investment. It is protection.

Add Rs. 5000 monthly till you reach Rs. 2 lakh target.

Insurance Must Be in Place
You must take term insurance for at least Rs. 1 crore.

Premium is low at your age. Around Rs. 600–900 monthly.

This protects your family in case of any event.

Also take health insurance of minimum Rs. 5 lakh.

Even one hospital bill can disturb all your savings.

Don’t delay insurance. Do it before you start SIPs.

House Purchase Can Wait
Buying a house is a big emotional goal.

But don’t rush to buy with new loan now.

Your family already has Rs. 17 lakh total loan.

Take 4–5 years to build corpus first.

This will also increase your home loan eligibility.

Avoid overloading yourself with EMI at this stage.

Monthly Investment Plan – SIP Breakdown
You can save Rs. 30,000–40,000 monthly.

Start with Rs. 30,000 monthly investment.

Keep Rs. 5000 aside for emergency fund and insurance.

Invest Rs. 25,000 monthly through SIP in regular mutual funds.

Choose regular plans through a Certified Financial Planner.

Don’t go for direct mutual funds. You won’t get help or review.

Regular plans via MFD and CFP give better handholding and clarity.

Direct funds may appear cheap but lack personal guidance.

SIP Bifurcation Based on Risk and Goals
You have medium risk appetite. Mix of equity and hybrid is ideal.

Divide Rs. 25,000 like this:

Rs. 12,000 in large cap and flexi cap mutual funds.

Rs. 8000 in aggressive hybrid funds.

Rs. 5000 in mid cap fund for long-term growth.

Don’t use small cap funds now. Risk is high and volatility is more.

Review fund performance every year with a CFP.

Increase SIP amount as income grows.

Stick to the SIP even if market falls. That’s when wealth builds faster.

Tax Rules to Keep in Mind
Equity mutual fund gains above Rs. 1.25 lakh taxed at 12.5%.

Short-term gains taxed at 20%.

Debt fund gains taxed as per your tax slab.

You can use tax-saving mutual funds once your base is ready.

Don’t over-rely on ELSS initially. Your focus now is growth and stability.

Goals: Short-Term and Long-Term View
Short-term: Build emergency fund and support family loans.

Medium-term: Start SIP and create Rs. 10–15 lakh in 5–7 years.

Long-term: Buy your house in 7–8 years with good down payment.

Very long-term: Start planning for retirement by age 35–40.

You can target Rs. 2 crore wealth by age 45 if you continue SIPs.

Investment Discipline and Strategy
Don’t stop SIPs midway unless it is an emergency.

Always invest through a Certified Financial Planner.

Don’t trust random social media tips.

Avoid ULIPs, endowment and money-back insurance policies.

If you ever buy such policies, surrender and shift to mutual funds.

Don’t go for index funds. They copy market blindly.

Index funds do not protect from sudden market falls.

Actively managed mutual funds can change strategy when market changes.

With proper review, they give better risk-adjusted returns.

Other Points to Remember
Don’t touch your mutual fund investments for short-term use.

SIPs are for long-term wealth building, not emergency use.

Review your investments once a year.

Don't compare returns with friends or market gossip.

Every investor has a different situation and goal.

Focus on your own financial story.

Increase your income slowly through career growth.

Any bonus or side income can be used to boost SIPs.

Wealth is built through habit, not high returns alone.

Final Insights
You are in the right stage to begin investing seriously.

Start with strong base: emergency fund, insurance, and discipline.

Don’t run behind fast returns or house purchase now.

Stick to mutual fund SIPs and grow step-by-step.

Keep reviewing your plan every year with a Certified Financial Planner.

Avoid risky products and quick-return promises.

Your current savings and SIPs will give strong wealth over time.

Be patient. Wealth creation takes 10–15 years of steady investing.

You are already ahead by thinking smart at 28.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Prof Suvasish

Prof Suvasish Mukhopadhyay  |1737 Answers  |Ask -

Career Counsellor - Answered on Jun 25, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Career
Sir the kcet verification slip has been released now. But I have received my re evaluated cbse board marks now and there is an increment of 10 marks in PCM. Can I update my marks now and get a new rank somehow? And what is the procedure for that?
Ans: Yes, you can update your KCET application with your new CBSE marks after re-evaluation. However, whether it impacts your rank depends on the Karnataka Examination Authority (KEA) rules and when your revised marks are released—especially in relation to the KCET counseling schedule.

Here's what you should do:
1. Check the KEA Website
Go to cetonline.karnataka.gov.in.

Look for any announcements or FAQs about:

Updating marks after re-evaluation.

Impact on KCET 2025 ranks and verification slip changes.

Check if they mention a process for submitting updated marks from other boards like CBSE.

2. Understand the Timeline
KCET Counseling Start Date:
If your updated CBSE marks come before KCET counseling begins, you’ll likely be allowed to update them.

CBSE Re-evaluation Timeline:
Re-evaluation takes time. Check CBSE’s website for expected timelines so you know when to expect your updated marks.

3. If Re-evaluation Results Come Before Counseling
Collect Documents:

Original CBSE mark sheet.

Revised mark sheet (after re-evaluation).

A copy of the re-evaluation confirmation (if available).

Contact KEA:

Use their official helpline or email (from their website).

Ask specifically how to update your marks in their system.

Follow KEA Instructions:

If allowed, KEA will give you exact steps—possibly uploading documents online or via a specific portal.

Rank Might Change:

If your updated marks are submitted in time, KEA may recalculate your rank using the new scores.

4. If Re-evaluation Results Come After Counseling
Spot Admissions or Special Rounds:

If regular counseling is over, you may not be able to change your application immediately.

However, you might be eligible for spot admissions or extra counseling rounds (if seats are still available).

Stay in Touch with KEA:

Contact them and ask whether your revised marks can still be considered in any remaining rounds.

5. General Tips
Don’t Assume Anything:
Always rely on official updates from KEA and CBSE. Don’t act on rumors or hearsay.

Keep All Records:
Save copies of your application, payment receipts, emails, and any mark sheets (old and revised).

Ask for Help if Needed:
If confused, talk to an education counselor or someone experienced with KCET admissions.

...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.

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