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Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

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
Siddharth Question by Siddharth on Jun 23, 2024Hindi

I am 33 years old. I have monthly salary of 160k post tax. I have an ongoing SIP of 49k in pure equity MF (95% Indian markets). MF worth 33L and stockes worth 11L. PF worth 2L. Emergency fund of 8L cash in bank/FD. While the MF and stock portfolio is entirely focused towards early retirement at the age of (1.2 L pm expenses), unable to work out my investment strategy for some other big ticket future expenses like buying a car next year, child education in 15 years (son 3M old), their marriage in 25 years. Am i being overly agressive in building retirement portfolio?

Ans: First of all, great job on being proactive about your financial future. It's impressive how you've already built a solid investment portfolio and planned for your retirement. Now, let's dive into your current strategy and explore how you can balance your retirement goals with other big-ticket expenses.

Evaluating Your Current Financial Situation
You are 33 years old, earning a post-tax monthly salary of Rs. 1.6 lakhs. You have an ongoing SIP of Rs. 49,000 in pure equity mutual funds, primarily focused on the Indian market. Your current assets include:

Mutual Funds: Rs. 33 lakhs
Stocks: Rs. 11 lakhs
PF: Rs. 2 lakhs
Emergency Fund: Rs. 8 lakhs in cash and FDs
Your goal is to retire early with a monthly expense of Rs. 1.2 lakhs. However, you are also considering other significant expenses like buying a car next year, your child's education in 15 years, and their marriage in 25 years.

Assessing Your Investment Strategy
Retirement Planning
Your focus on equity mutual funds for retirement is commendable. Equity mutual funds offer higher returns over the long term, which aligns well with your early retirement goal. However, it's essential to ensure that your portfolio is well-diversified to manage risk.

Aggressiveness in Portfolio
You mentioned that 95% of your investments are in the Indian equity market. While this strategy can yield high returns, it also comes with higher risks due to market volatility. Diversifying your investments can help mitigate these risks.

Balancing Other Financial Goals
Buying a Car
You plan to buy a car next year. For short-term goals like this, equity investments might not be suitable due to market volatility. Instead, consider parking your money in safer investment options like short-term debt funds or fixed deposits. These instruments provide stability and lower risk, ensuring your funds are available when needed.

Child's Education
Your child is 3 months old, so you have around 15 years to save for their education. This is a long-term goal, allowing you to leverage the power of compounding. Here’s a suggested strategy:

Child Education Plan: Invest in a balanced or hybrid mutual fund. These funds allocate assets between equity and debt, offering a mix of growth and stability.

Systematic Investment Plan (SIP): Start a dedicated SIP for your child’s education. This ensures regular contributions and benefits from rupee cost averaging.

Review and Adjust: Periodically review your investments. As you approach the education goal, gradually shift from equity to debt to reduce risk.

Child's Marriage
Planning for your child's marriage in 25 years also falls under long-term goals. The strategy here would be similar to education planning but with a longer horizon, giving you more time to benefit from equity growth.

Diversifying Your Portfolio
Equity Mutual Funds
Equity mutual funds are great for long-term growth. However, consider diversifying across different types of equity funds to balance risk and return:

Large-Cap Funds: These funds invest in well-established companies, offering stability and steady returns.

Mid-Cap and Small-Cap Funds: These funds invest in medium and smaller companies, providing higher growth potential but with increased volatility.

International Equity Funds: Diversify beyond the Indian market by investing in international funds. This reduces country-specific risks and provides exposure to global growth.

Debt Mutual Funds
Debt mutual funds offer lower risk and steady returns. They are suitable for short to medium-term goals and can be a part of your portfolio to balance the equity exposure. Consider including:

Short-Term Debt Funds: Ideal for goals within 1-3 years, like buying a car.

Medium-Term Debt Funds: Suitable for goals within 3-5 years, providing better returns than short-term funds with moderate risk.

Emergency Fund
You have an emergency fund of Rs. 8 lakhs in cash and FDs. This is a good practice, ensuring you have liquidity for unforeseen expenses. Typically, an emergency fund should cover 6-12 months of expenses. Given your monthly expenses of Rs. 1.2 lakhs, you might want to slightly increase your emergency fund to ensure complete coverage.

Final Insights
Your proactive approach to retirement planning is excellent, but it's crucial to balance this with other financial goals. Diversify your investments to manage risk better and align with various timelines for your goals. Here’s a summarized action plan:

Retirement Portfolio: Continue with your equity SIP but diversify into large-cap, mid-cap, and international equity funds.

Car Purchase: Use short-term debt funds or FDs for safer, stable returns within the next year.

Child’s Education: Start a dedicated SIP in balanced mutual funds, review periodically, and gradually shift to debt as the goal approaches.

Child’s Marriage: Similar strategy as education, but with a longer horizon, allowing for more aggressive equity exposure initially.

Emergency Fund: Ensure it covers at least 6-12 months of expenses for complete financial security.

Remember, financial planning is a continuous process. Regularly review and adjust your investments to stay aligned with your goals. Your disciplined approach, combined with strategic diversification, will help you achieve your financial aspirations smoothly.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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.

You may like to see similar questions and answers below


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 07, 2024

Asked by Anonymous - May 07, 2024Hindi
Hi, I am a 35y old single Male. My target is to retire at 50 with a corpus of 25 Crores. Currently, the worth of my portfolio is 1.25 Crore with 75 lakhs in MFs, 25 lakhs in NPS, 10 lakh in PPF, 10 lakh in SGB and about 5 lakhs in Cash and Stocks. My monthly investment is 90k in MFs and annual investment in PPF and SGB is 1.5 lakhs each. I have a 2Bhk house in Pune and my after-tax salary is 2 lakhs/month. My company takes care of my accommodation and my regular monthly expenses are about 50k/month. Do you want to suggest any other plans or am I doing alright keeping my goal in mind? Currently, the MFs are weighted about 50% Small cap, 25% Mid and flexi cap and 25% Large cap.
Ans: Your dedication to financial planning is commendable, especially with a clear retirement goal in mind. Let's delve into your current situation and discuss potential adjustments:

Your current portfolio allocation seems well-diversified, with a significant portion invested in mutual funds, NPS, PPF, SGB, and some cash and stocks. This mix offers a balance of growth and stability.

Your monthly investments and annual contributions to PPF and SGB reflect a disciplined savings approach. It's crucial to maintain this consistency to achieve your retirement target.

Your 2BHK house in Pune is an asset that adds to your net worth and provides security. It's great that your company covers your accommodation expenses, easing your financial burden.

With your after-tax salary and monthly expenses, you have a surplus for investments, which is a positive sign. It's essential to ensure that this surplus is utilized efficiently towards your retirement goal.

Considering your goal of accumulating a corpus of 25 Crores by the age of 50, it might be beneficial to reassess your asset allocation strategy. While your current allocation is diversified, you may want to tilt it slightly towards more conservative options as you approach retirement age.

Given your aggressive investment approach, you might consider gradually shifting towards a more balanced portfolio with a higher allocation to large-cap and balanced funds, which are comparatively less volatile.

Additionally, exploring other investment avenues such as direct equity, debt funds, or alternative investments could further diversify your portfolio and potentially enhance returns.

Regularly reviewing your portfolio's performance and rebalancing it as needed is crucial to stay on track towards your retirement goal.

Overall, you're on the right track with your financial planning efforts. Continue with your disciplined approach, stay informed about market trends, and seek professional advice if needed to optimize your portfolio further.

Keep up the excellent work, and with persistence and smart decision-making, you're well-positioned to achieve your retirement target!

..Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

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

Asked by Anonymous - May 08, 2024Hindi
Hello Sir, I am planning to retire early with a net worth of 5 crore. Current Age: 29 yrs Investment: 1. EPF - 10 lakhs 2. PPF - 6.57 lakhs 3. NPS - 1.3 lakhs 4. M/F - 17.7 lakhs 5. Stocks - 6 lakhs 6. F/D - 1.4 lakhs 7. Bonds - 3.32 lakhs 8. ULIP - 4 lakhs. SIP: 23500/- per month ULIP: 5200/- p.m. NPS: 5000/- p.m. And based on extra cash, I invest in FD/Stocks. Is my portfolio in the current track wrt my Target path? Please suggest if I should look into more investments or increase the amount in the current category itself. Thank you.
Ans: Your early retirement goal with a net worth of 5 crore at 29 is commendable and shows your financial prudence and foresight. Let's assess your current investment portfolio.

Your allocation across various investment avenues reflects a balanced approach. EPF, PPF, and NPS provide stability and tax benefits, while MFs, stocks, and ULIPs offer growth potential. This mix aligns well with your long-term objectives.

However, there's room for optimization. Considering your age and risk appetite, you may explore increasing exposure to equities. Equities have historically outperformed other asset classes over the long term, albeit with higher volatility.

Regularly reviewing and adjusting your SIPs and ULIP contributions can capitalize on market opportunities and mitigate risks. Additionally, diversifying further within equities, perhaps through sector-specific or thematic funds, can enhance portfolio resilience.

While FDs and bonds offer safety, their returns may not outpace inflation, potentially eroding purchasing power over time. Reassess their role in your portfolio vis-a-vis your goals and risk tolerance.

Moreover, working with a Certified Financial Planner can offer personalized guidance tailored to your financial aspirations, risk tolerance, and time horizon. They can help optimize your portfolio, navigate market fluctuations, and stay on track towards your retirement goal.

In conclusion, your current investment trajectory aligns well with your retirement aspirations. However, optimizing asset allocation, particularly towards equities, and periodic review with a Certified Financial Planner can further strengthen your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Hello, Sir/Madam I am 21 right now and I started a SIP of 5K per month in mutual funds, more specifically 2K in the HDFC Nifty 50 index fund, 1.5K in HDFC Flexi Cap and 1.5K in SBI Flexi Cap in March 2024 with 10% increase in the amount every year. My idea is that I can use the index fund as a long-term investment whereas both the flexi caps are short-term investments (1-2 years). My salary is around 40K and 25K to 30K goes into the expenses(incl. investments) and the rest goes into my savings as an emergency fund. My plan is to buy a bike in 1 year, marry in the next 5-7 years, and buy a house in the next 10-12 years. Also, I'm planning to invest in either Gold ETFs or Sovereign Bonds in the next few months for stable growth. Please suggest to me some changes I can make to my portfolio to fulfil the above needs and still have some corpus amount left for retirement.
Ans: Review and Analysis of Current Portfolio
Your disciplined investment approach at a young age is commendable. Starting a Systematic Investment Plan (SIP) early provides a significant advantage due to the power of compounding. However, aligning your portfolio with your goals more effectively can optimize your returns and reduce risks.

Assessing Current Investments
Nifty 50 Index Fund
Index funds are popular due to their low expense ratios and market-matching returns. However, they lack the potential for outperforming the market. Actively managed funds, on the other hand, can provide better returns through expert management, especially in a developing market like India. Considering an actively managed equity fund could offer you higher returns over the long term.

Flexi Cap Funds
Flexi cap funds offer diversification across market capitalizations and can adjust to market conditions. They are suitable for both short-term and long-term goals due to their flexibility. However, using them for very short-term goals (1-2 years) can be risky due to market volatility.

Savings and Emergency Fund
Maintaining a savings buffer for emergencies is a prudent strategy. Given your current savings rate, it seems you are balancing well between investments and liquidity.

Recommendations for Portfolio Adjustments
Long-Term Investments
Actively Managed Equity Funds: Consider reallocating your Nifty 50 index fund investment into an actively managed equity fund. This shift could potentially yield better returns, leveraging fund managers' expertise.

Increase SIP Amount Annually: Your plan to increase the SIP amount by 10% annually is excellent. This practice will help combat inflation and increase your investment corpus over time.

Short-Term Investments
Debt Funds for Short-Term Goals: For goals like purchasing a bike in one year, consider debt funds instead of flexi cap funds. Debt funds offer more stability and lower risk, which is crucial for short-term investments.

Systematic Transfer Plan (STP): Use an STP to move funds from equity to debt as you approach your short-term goal timeline. This strategy can help mitigate market risks closer to your goal.

Diversification with Gold
Gold ETFs or Sovereign Gold Bonds: Adding gold to your portfolio can provide stability and act as a hedge against inflation. Gold ETFs offer liquidity, while Sovereign Gold Bonds offer additional interest income.
Planning for Major Life Goals
Marriage (5-7 Years)
Balanced Funds: Invest in balanced funds which offer a mix of equity and debt. They provide growth potential while reducing volatility, making them suitable for medium-term goals.

Recurring Deposits: Consider recurring deposits for a portion of your savings. They offer guaranteed returns and help in goal-specific savings.

Home Purchase (10-12 Years)
Equity Funds: Continue with equity funds for this long-term goal. Equities tend to outperform other asset classes over a longer horizon.

Diversified Portfolio: Maintain a diversified portfolio across various equity funds to spread risk and optimize returns.

Retirement Planning
Regular Review and Adjustments: Regularly review and adjust your portfolio as per your changing risk appetite and financial goals.

Professional Guidance: Regularly consult a certified financial planner to stay on track and make informed decisions.

Your current investment strategy shows good foresight and discipline. By shifting from index funds to actively managed funds and using debt funds for short-term goals, you can optimize your portfolio. Diversifying with gold and regularly reviewing your investments will ensure you meet your financial objectives comfortably.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2024

Asked by Anonymous - Jul 07, 2024Hindi
Hello sir, I am 43 years old and a Govt. employee. I need to plan for my children's future and my retired life too as I am not under OPS but under NPS. Cash-in-hand salary after all deductions is 40k. Following are my investments: 1) PPF 37 lacs, 1.50lacs yearly contribution. 2) SSA 14 lacs, 1.50lacs yearly contribution. 3) PF 27 lacs, 32K monthly contribution managed by my employer. 4) NPS 26 lacs, 25K monthly contribution both managed by my employer. 5) A house through Home loan which I will repay by 60. 6) MF Portfolio: 26 lacs against investment of 10lacs in following funds: Nippon India Tax Saver, Nippon India Small Cap, HSBC Infrastructure Fund, HDFC Midcap Opportunities, DSP NRNE, HSBC Midcap, ABSL Focused, Mirae Asset Large Cap, SBI Bluechip, SBI Balanced Advantage, Tata Smallcap, Baroda BNP Paribas Smallcap, Quant Active, Axis Smallcap, SBI Contra, SBI Automotive Opportunities I am investing in above 16 funds through 1000 monthly SIP and plan it to continue till 60. Thereafter I am planning to start SWP with the available corpus at that time. Kindly advise especially about my MF portfolio allocation and my planning for retirement whether I am proceeding in the right direction or do I need to make some changes. Your advice would be beneficial to me. Thanks in advance.
Ans: Planning for your children's future and your retirement is wise. With your current investments, you're on the right path but let’s refine your strategy for better results. Here’s a detailed analysis and suggestions.

Current Investments Analysis
Public Provident Fund (PPF)
Your PPF is robust with Rs 37 lacs and an annual contribution of Rs 1.5 lacs. This is a safe and tax-efficient investment, but it’s important to balance safety with growth.

PPF gives guaranteed returns, but they are moderate. It’s a great tool for safety and long-term growth.

Sukanya Samriddhi Account (SSA)
SSA is an excellent choice for your daughter’s future. With Rs 14 lacs and an annual contribution of Rs 1.5 lacs, it’s a solid investment for her education and marriage expenses. Like PPF, it offers safety and decent returns.

Provident Fund (PF)
Your PF balance is Rs 27 lacs with a monthly contribution of Rs 32k. This is a great safety net for retirement. PF offers guaranteed returns and tax benefits.

National Pension System (NPS)
NPS is a good retirement savings tool, providing market-linked returns. Your NPS balance is Rs 26 lacs with a monthly contribution of Rs 25k. It’s flexible and offers better returns over time.

Home Loan
Having a house is a good asset, and repaying your home loan by 60 is a prudent goal. Owning a home gives financial stability in retirement.

Mutual Fund Portfolio
Your mutual fund (MF) portfolio is Rs 26 lacs against an investment of Rs 10 lacs. Investing in 16 different funds through monthly SIPs of Rs 1,000 each is commendable but needs refinement for better performance.

Refining Your Mutual Fund Portfolio
Reduce the Number of Funds
Investing in too many funds dilutes potential gains. Consider consolidating your portfolio. Focus on a balanced mix of large-cap, mid-cap, and small-cap funds.

Active vs. Passive Management
Actively managed funds, like the ones you have, are good as fund managers can adapt to market changes. They aim to outperform the benchmark.

Suggested Fund Categories
Large-Cap Funds
These invest in well-established companies with stable returns. They provide steady growth and lower risk.

Mid-Cap Funds
These invest in medium-sized companies with growth potential. They offer higher returns but with higher risk.

Small-Cap Funds
These target small companies with high growth potential. They are risky but can offer significant returns.

Balanced Advantage Funds
These dynamically manage asset allocation between equity and debt. They provide stability and growth.

Advantages of Mutual Funds
Professional Management
Mutual funds are managed by experts who make informed decisions on your behalf.

Investing in mutual funds allows diversification, reducing risk and enhancing potential returns.

Mutual funds are relatively liquid. You can redeem your investment anytime.

Systematic Investment Plan (SIP)
SIPs help in disciplined investing, averaging out costs and reducing market timing risk.

Mutual funds benefit from the power of compounding, significantly growing your investment over time.

Disadvantages of Index Funds
Limited Flexibility
Index funds strictly follow the index, offering no flexibility in changing market conditions.

Average Returns
Index funds aim to match the index returns, which are average and not always the best.

Benefits of Actively Managed Funds
Potential to Outperform
Actively managed funds aim to outperform the index, providing higher returns.

Fund managers can make strategic decisions based on market conditions.

Evaluating Your Current Strategy
Monthly Contributions
You’re investing Rs 1000 per month in 16 funds, totaling Rs 16,000 monthly. This is a good strategy but can be optimized by focusing on fewer, high-performing funds.

Systematic Withdrawal Plan (SWP)
Starting an SWP after 60 is a smart move. It provides regular income and keeps your investment growing.

Optimizing Your Investments
Focus on Quality Funds
Choose funds with a consistent track record. Look for those with good ratings and past performance.

Monitor and Review
Regularly review your portfolio. Make changes if necessary to ensure it aligns with your goals.

Risk Management
Ensure your portfolio matches your risk appetite. Diversify to balance risk and returns.

Long-Term Goals
Children's Education and Marriage
Your SSA is a great start. Consider additional investments in mutual funds for higher returns to cover inflation-adjusted expenses.

Retirement Planning
Your PF, NPS, and PPF are solid foundations. Enhance your retirement corpus with balanced mutual funds for growth.

Additional Suggestions
Emergency Fund
Maintain an emergency fund covering 6-12 months of expenses. It ensures financial stability in unforeseen circumstances.

Health Insurance
Ensure adequate health insurance for your family. It prevents dipping into savings during medical emergencies.

Tax Planning
Maximize tax-saving investments under Section 80C and other applicable sections. It optimizes your post-tax returns.

Final Insights
Your current investments show a well-planned approach towards securing your future and your children’s. With a few refinements in your mutual fund portfolio and regular monitoring, you can enhance your returns and achieve your goals more efficiently.

Stay focused on your long-term objectives. Continue your disciplined investment approach, and you will see substantial growth in your wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

Latest Questions

Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Hello. I have started investing. I have invested 80k through an agent lumpsum. But now I want to start an sip by myself as well as buy an sgb. I have decided Nippon small cap as a fund for 10k and I have decided another fund motilal oswal midcap fund for 10k. Every month if I have anything left extra maybe 2-3k i will invest in other funds like index funds. I chose only small and mid cap because I am just 24 years old and I don't really have many expenses, long term investment horizon and decided 20k after keeping aside 10k for myself. I am also going to buy an sgb on zerodha coin and leave it for 8 years. I am goin to get 2.4 lakhs from my chut fund. I am not sure how much to invest in sgb and what to do with remaining. I have 1.5 in my fd. I started sip in et money app. I set it up and it's goin to start from July 1st 2024. Please help me with if the funds I chose are good for me and how do I split the 2.5 l and also please suggest if zerodha for sgb and et money for sip are good. I also wanted one for swp but i don't know much about that and where to start that. Do you suggest and swp fund for me for nor or just stick to my plan? Please help me . Thank you so much.
Ans: Review of Current Investments

You have started with a lumpsum investment of Rs 80,000 through an agent. Additionally, you plan to invest Rs 20,000 per month in SIPs, focusing on small and mid-cap funds.

Your choice of small and mid-cap funds aligns well with your long-term horizon and risk appetite at 24 years old.

Investment Platforms: Evaluation

ET Money for SIP:


Easy to use and set up SIPs.

Convenient for managing multiple investments.


Lacks personalized advice from Certified Financial Planners.

Limited support for complex financial planning.

Zerodha for SGB:


Simple and cost-effective for buying SGBs.

Good for long-term holding.


May not provide personalized investment advice.

Limited customer support for investment queries.

Advantages of Investing through an MFD

Personalized Advice: Tailored to your financial goals and risk profile.

Regular Monitoring: Helps in adjusting investments based on market conditions.

Comprehensive Planning: MFDs offer a holistic approach, including tax planning and retirement planning.

Disadvantages of Digital Platforms

Lack of Personal Touch: Limited personalized advice and support.

Complex Needs: May not cater to complex financial planning needs.

Utilizing Your Chit Fund Proceeds

You will receive Rs 2.4 lakhs from your chit fund. Here’s how you can allocate it:

SGB Investment: Consider investing Rs 1 lakh in SGB for long-term stability and returns.

Diversified Mutual Funds: Invest Rs 1.4 lakhs in diversified mutual funds through an MFD to balance risk and growth.

Systematic Withdrawal Plan (SWP)

An SWP can provide regular income from your mutual fund investments. It is more suitable once you have built a substantial corpus. For now, focus on growing your investments.

Final Insights

Your investment choices reflect a good start. Consider engaging with an MFD for personalized advice and comprehensive planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jun 10, 2024Hindi
Is it worth considering a real estate investment at Panvel, Navi Mumbai? Or is it better to invest that capital in other growth instruments like MFs? I already have 2 houses, with zero debt, and I'm considering investing in Navi Mumbai, as I'm hearing that it'll grow as a corridor. Please advise.
Ans: Real Estate in Panvel, Navi Mumbai
Panvel is indeed growing.

The area shows promise as a future corridor.

You already own two houses.

You have zero debt, which is commendable.

Considerations for Real Estate Investment
Real estate investments can be illiquid.

Selling property takes time and effort.

Property values can fluctuate and may not always guarantee high returns.

Benefits of Mutual Funds
Mutual funds offer higher liquidity.

You can redeem investments easily.

They provide potential for high returns.

Actively Managed Funds
Actively managed funds are preferred.

Fund managers work to maximize returns.

They can adapt to market changes effectively.

Mutual funds allow for better diversification.

You can spread your risk across sectors.

This can lead to more stable returns.

Professional Management
Mutual funds are managed by experts.

Certified Financial Planners can guide you.

Regular reviews and adjustments are possible.

Final Insights
Investing in mutual funds is more flexible.

They offer better liquidity and potential returns.

Consider mutual funds over another property.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

If anyone want to investment planning. Please let me know like lumpsum benefits and guaranteed income I will tell you briefly
Ans: Lumpsum Investment: Benefits and Considerations


Potential for Higher Returns: Investing a large amount at once can yield significant returns.

Simple and Quick: One-time investment, no need for regular monitoring.

Ideal for Market Opportunities: Beneficial during market dips for higher gains.


Market Risk: Higher exposure to market volatility at one point.

Timing Risk: Difficult to time the market perfectly.

Liquidity: May face restrictions on withdrawing funds.

Guaranteed Income: Options and Benefits

Fixed Deposits:

Safety: Provides guaranteed returns.

Liquidity: Easy to withdraw with minimal penalties.

Predictable Income: Fixed interest rate ensures regular income.

Public Provident Fund (PPF):

Safe Investment: Government-backed, risk-free.

Tax Benefits: Interest earned is tax-free.

Long-Term Growth: Suitable for long-term financial goals.

Senior Citizens' Savings Scheme (SCSS):

High Safety: Government-backed, secure returns.

Regular Income: Quarterly interest payments.

Tax Benefits: Investment eligible for tax deduction.

Systematic Withdrawal Plan (SWP):

Flexibility: Regular income from mutual funds.

Tax Efficiency: Only the gains are taxed, not the principal.

Control: Decide the withdrawal amount and frequency.

Final Insights

Combining lumpsum investments with guaranteed income options can provide growth and stability. Regular reviews with a Certified Financial Planner can help align with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Hi I am currently 30 years of age and I would like to ask about an investment where I'm going to make on a flat purchase of 46 Lacs with down payment of 16 Lacs along with a loan of 30 Lacs with a current salary of 50050 rupees per month... So I would like to know the loan tenure would be best suited for me to manage my savings for the future along with my daily expenditure?
Ans: Investment Strategy for Flat Purchase
Purchasing a flat can be a significant financial decision. As a Certified Financial Planner, I appreciate your initiative in seeking advice.

Assessing Your Financial Situation
You have a salary of Rs. 50,050 per month. Your down payment is Rs. 16 lakhs. You plan to take a loan of Rs. 30 lakhs. It's crucial to balance your loan repayment with your daily expenses and savings.

Evaluating Loan Tenure
For your situation, a longer loan tenure can lower your EMI. This means more manageable monthly payments. However, this will increase the total interest paid over the loan period. A shorter loan tenure will result in higher EMIs but lower total interest.

Balancing Savings and Expenses
With your monthly salary, aim to keep your EMIs around 30-40% of your income. This ensures you have enough for daily expenses and savings. For a loan of Rs. 30 lakhs, consider a tenure of 20 years. This will make your EMIs more affordable.

Planning for Future Savings
Allocate funds for emergency savings, retirement planning, and other goals. Ensure you have at least six months of expenses saved for emergencies. Regularly review and adjust your financial plan.

Final Insights
Balancing a home loan with savings and expenses requires careful planning. Choose a loan tenure that suits your monthly cash flow. Keep your long-term financial goals in mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jul 06, 2024Hindi
Hi sir, I am aging 37 years. I have built house in my native and its present value is Rs 45 lakh. With housing loan of Rs 9 lakh and getting only 6k rent. As I am working in corporate company in Blore. And no plans to go back to my native for next 10 years. So plz guide me shall i sell this house and invest elsewhere. If yes. Plz guide me which is the best option for long term means for next 10 years investment. Thank u .
Ans: Current Situation Analysis

Your house in your native place is valued at Rs 45 lakh, with a housing loan of Rs 9 lakh. The rental income of Rs 6,000 per month may not be sufficient to justify holding the property if you are not planning to return in the next 10 years.

Evaluating the Options

Selling the House: Pros and Cons


You can clear the housing loan of Rs 9 lakh.

You can invest the proceeds in higher-return assets.

Eliminates the hassle of managing a rental property.


You may lose potential appreciation in property value.

Emotional attachment to the property.

Investment Options for Long Term

1. Mutual Funds:

Equity Mutual Funds: Suitable for long-term growth. Diversify across sectors and companies.

Hybrid Mutual Funds: Mix of equity and debt. Provides balanced growth with some stability.

2. Public Provident Fund (PPF):

Safe and tax-efficient.

Offers decent returns over the long term.

3. Systematic Investment Plans (SIPs):

Regular, disciplined investment in mutual funds.

Beneficial for averaging out market volatility.

4. Debt Mutual Funds:

For stability and regular income.

Less risky compared to equity mutual funds.

Final Insights

Selling the house and clearing the loan can free up capital for more productive investments. Diversifying into mutual funds, PPF, and SIPs can provide balanced growth and stability over the next 10 years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jul 06, 2024Hindi
I am earning 1.2 lakh per month. Age 29 unmarried, Money for marriage is adjusted.I have a house and planning to buy another one probably 1cr . An lic policy of yearly premium of 25k. My savings are 5 lakhs. As of now I can invest 40k per month. I want liquid corpus of 1cr by age 50 and children education planning.
Ans: Monthly Income and Savings
You earn Rs. 1.2 lakh per month.

You save Rs. 40,000 per month.

You have Rs. 5 lakhs in savings.

Your LIC policy has a yearly premium of Rs. 25,000.

Investment Goals
You want Rs. 1 crore by age 50.

You plan for your children's education.

You plan to buy a house worth Rs. 1 crore.

Investment Strategy
Invest in a mix of equity and debt funds.

Focus on actively managed funds for better returns.

Consider SIPs for regular investments.

Liquid Corpus Goal
Aim for a diversified portfolio.

Allocate funds to equity for growth.

Include debt funds for stability.

Children's Education Planning
Start early to benefit from compounding.

Invest in children's plans and education funds.

Review and adjust the portfolio regularly.

House Purchase Plan
Ensure your investments align with your house purchase goal.

Keep your house purchase timeline in mind.

Insurance and Savings
Review your LIC policy for adequacy.

Consider additional term insurance if needed.

Professional Guidance
A Certified Financial Planner can help optimize your plan.

Regularly review your portfolio with your planner.

Final Insights
Maintain a disciplined investment approach.

Regularly review and adjust your goals.

Seek professional advice when needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more


Ramalingam Kalirajan  |4843 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Dear Sir/Madam i have an savings of 1.22CR i have invested in MF and some amount in FD also, want to ask you is it better to invest in FD as i am retiring next year by April thanks.
Ans: Evaluation of Current Investments

Your current savings of Rs 1.22 crore is commendable. Having investments in mutual funds and fixed deposits shows a balanced approach.

However, evaluating the need for fixed deposits is crucial. Fixed deposits offer safety but low returns compared to mutual funds. Since you are retiring soon, it is essential to assess the balance between safety and growth.

Fixed Deposits: Pros and Cons


Fixed deposits provide guaranteed returns.

They are safe and secure investments.

Liquidity is available but may come with penalties.


Returns are lower compared to mutual funds.

Interest earned is taxable.

Inflation can erode the real value of returns.

Mutual Funds: Pros and Cons


Potential for higher returns compared to fixed deposits.

Diversified investments reduce risk.

Flexibility to choose funds based on risk appetite and goals.


Returns are market-linked and can fluctuate.

Requires regular monitoring.

May involve higher costs if not chosen wisely.

Assessing Your Needs

Given your retirement plan next year, stability and income generation become essential. Fixed deposits provide stability, but mutual funds can offer growth. A mix of both can provide balance.

Strategy for Retirement

Consider maintaining a portion in fixed deposits for safety. This portion can cover short-term needs. The rest can remain in mutual funds for growth. This strategy ensures a balance between safety and potential returns.

Final Insights

Your proactive approach is commendable. Maintaining safety with fixed deposits and growth with mutual funds can serve you well. Regular reviews with a Certified Financial Planner can ensure alignment with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...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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