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Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 25, 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 - Sep 24, 2025Hindi

Hi Sir, i am a 32 year old unmarried woman. My monthly drawn salary is 60k. I have family expense of 20k, 5k of LIC Premium, 6.5k of loan emi, and 5k misllenius expense. Rest around 16k I have put in RD of Post Office. By this year end one of RD will get matured and will receive around 3.5lac. I want your suggestion in my current situation to have more secure future financially. Doesn't have much family support financially.

Ans: You are already doing well. You are saving a good part of your income. That itself shows discipline. Many people of your age spend everything. You are careful and responsible. That deserves appreciation. Now let us look step by step.

» Current income and expenses
– Your monthly salary is Rs 60,000.
– Family expenses are Rs 20,000.
– LIC premium is Rs 5,000.
– Loan EMI is Rs 6,500.
– Miscellaneous expenses are Rs 5,000.
– Remaining Rs 16,000 is going into RD.
This means you save more than 25% of income. That is a strong habit.

» Insurance and protection cover
– LIC policy is not clear if it is traditional or term.
– If it is traditional policy, surrender and move money to mutual funds.
– Keep a pure term insurance. That will protect your family in your absence.
– Take health insurance for yourself. Family support is less, so you need it.
– Do not depend on employer policy alone. Independent cover is must.
– Keep an emergency fund of at least 6 months expense.
– This can be in savings account or short-term debt mutual funds.

» Loan management
– Your EMI is small compared to income. That is manageable.
– But aim to close the loan soon.
– Once RD matures, you can use some part to prepay.
– Being debt free gives peace and more savings power.

» Emergency fund creation
– Right now, all your savings are in RD.
– RD gives safety but not liquidity beyond tenure.
– Keep Rs 1.5 lakh from your RD maturity as emergency fund.
– This must be untouched for daily spending.
– This will give confidence in job loss or health issue.

» Short-term goals
– You may have personal goals in 3 to 5 years.
– For such goals, use recurring deposit or short-term debt mutual funds.
– This will give stability and predictable growth.
– Do not invest short-term money in equity funds.

» Long-term wealth creation
– You are young at 32. You have 20+ years to build wealth.
– For long-term, equity mutual funds are best.
– Choose actively managed funds through a Certified Financial Planner.
– Regular plan through MFD with CFP ensures guidance.
– Direct plans look cheaper but they give no guidance.
– Wrong decisions can cost more than direct plan savings.
– Actively managed funds perform better than index funds in Indian market.
– Index funds lack human expertise and underperform in many phases.
– Active funds have managers who take decisions in tough times.
– This is important for long-term wealth compounding.

» Using your RD maturity of Rs 3.5 lakh
– Keep Rs 1.5 lakh aside as emergency fund.
– Keep Rs 50,000 to prepay your small loan.
– Remaining Rs 1.5 lakh can be invested in equity mutual funds.
– Start SIP also with your monthly surplus of Rs 16,000.
– SIP will create discipline like RD but with higher return potential.
– Increase SIP amount every year as salary grows.

» Asset allocation approach
– Keep emergency fund in safe instruments.
– For long-term, equity funds should be 70% of investments.
– For stability, debt funds and RD can be 20%.
– Gold can be 10% for diversification.
– Review allocation once in 2 years with a Certified Financial Planner.

» Retirement planning
– Retirement is a long-term goal for you.
– Expenses after retirement must be covered without worry.
– Start a retirement corpus through mutual fund SIPs.
– The power of compounding will help you.
– Example: Rs 16,000 monthly for 25 years can create big wealth.
– As income grows, increase SIP to 20,000 or 25,000.
– This is the right age to plan for retirement corpus.

» Tax planning
– Your LIC premium gives some tax deduction.
– But returns from LIC policies are poor.
– Mutual funds also give tax benefits under certain categories.
– Equity mutual funds taxation is simple.
– Long-term gains above Rs 1.25 lakh taxed at 12.5%.
– Short-term gains taxed at 20%.
– Debt funds are taxed as per your income slab.
– Keep tax in mind when redeeming.
– Use proper planning to save more in hand.

» Lifestyle management
– Your lifestyle expenses are within limits.
– Do not increase lifestyle cost with salary hikes.
– First increase SIP whenever salary grows.
– Lifestyle inflation can kill future wealth.
– Keep luxury spending within 10% of income only.

» Financial independence as a woman
– You have no strong family support financially.
– So your independence is most important.
– Build your assets in your name.
– Keep nominations updated for all investments.
– Prepare a simple will to avoid disputes later.
– This gives peace and protection of your wealth.

» Review of current mistakes
– Too much money in RD gives low returns.
– LIC traditional policies are low return products.
– Loan continues while you have savings lying idle.
– These can be corrected now with small steps.
– Move from RD to SIP in equity mutual funds.
– Shift from LIC traditional plan to term plus mutual fund.
– Use RD maturity wisely to balance emergency, debt, and growth.

» Discipline for future
– Track your expenses monthly.
– Continue saving at least 30% of income.
– Review financial goals once a year.
– Do not stop SIPs during market fall.
– Continue investing in bad times also.
– That will give best long-term wealth.

» Role of professional guidance
– Work with a Certified Financial Planner.
– They will align your investments with your goals.
– Regular reviews will keep your plan on track.
– Guidance helps avoid emotional mistakes in markets.
– Advice from family or friends may not be professional.
– So trust a CFP for long-term wealth safety.

» Final Insights
– You are saving well at present.
– But your money is sitting in low-return RD.
– Move gradually to equity mutual funds through SIP.
– Clear small loan soon.
– Create strong emergency fund.
– Keep health insurance and term insurance in place.
– Keep retirement as the biggest long-term goal.
– Review and adjust with a Certified Financial Planner.
– Small disciplined steps will make you financially strong.
– You have time and discipline. You will succeed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked on - Sep 25, 2025 | Answered on Sep 25, 2025

Thank you so much for your time. It is clearly giving me a confidance.

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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