I am 35, govt employee with having inhand salary of 1 lakh /month. I have a term plan of 1 cr and the medical facility is provided by the office covers both OPD and IPD. I have a home loan EMI of Rs 20000, 15 lakh are still to be paid, and...

I am 35, govt employee with having inhand salary of 1 lakh /month. I have a term plan of 1 cr and the medical facility is provided by the office covers both OPD and IPD. I have a home loan EMI of Rs 20000, 15 lakh are still to be paid, and Investing about Rs 9000 in mutual funds Quant tax saver-2500, Quant small cap-2000, Nippon small cap-2000, Mirae Asset emerging bluechip funds-2500 corpus of 2.5 lakh is generated. 10% of basic is been deducted in NPS. Please review my portfolio and suggest to me which funds and stocks, to have a balanced and diversified portfolio for maximum gain. I should repay my home loan have an interest rate of 9.55% or invest. Please help me to fix the amount I should repay in the loan and the amount I should invest to generate a corpus of 2cr in 20 years by means of stocks, SGB, mutual funds, and other instruments & average monthly expenses amount. I have realized that I am investing after spending so expenses are higher, it should be investing first and the remaining amount to be spent. Help me to have balanced diversified portfolio of multiple instruments to achieve the goal of 2 CR. Long-term Goal (20 years) Amount Retirement (other than NPS) 1cr Child education (2) 40 lakhs Child Marriage (2) 60lakhs Pankaj

Ans: Your current portfolio is well-diversified across different asset classes, including mutual funds, NPS, and an Insurance.

However, there is a significant high allocation to small-cap funds, which tend to be more volatile. By replacing Quant Small Cap Fund, you can add Parag Parikh Flexi Cap Fund (Returns variation can be seen but the risk exposure reduced drastically)

We do not have your home loan details. So, in brief if you have paid EMIs for more than half of the loan tenure then it is not advisable for prepayment considering financial mathematics. But it is good from a psychological aspect.

To achieve a corpus of 2 Cr. In 20 Years, you have to do monthly investment of Rs. 20,000 @ 12% p.a. It is achievable by selecting Equity and Hybrid Mutual Funds with right risk to reward ratio.
For achievement of other goals, complete details are not mentioned.

I would advice you to take the help of a good financial advisor and plan for the future properly.

Ans: Snapshot of Your Current Finances
Age 46, salary in hand Rs?1.7?lakh monthly.

Monthly expenses Rs?48,000.

Car loan EMI Rs?12,000. 24 instalments remain.

Credit?card loan Rs?8,500 EMI. Four instalments remain.

Mutual funds current value Rs?10?lakh. SIP investing Rs?38,000 monthly.

NPS corpus Rs?8?lakh.

PPF balance Rs?6.5?lakh.

Sukanya Samriddhi balance Rs?4.5?lakh.

ULIP premium Rs?15,000 monthly.

Recurring deposit Rs?12,000 monthly.

Extra saving power Rs?20,000 monthly.

Term cover Rs?1.5?crore till 70.

Health cover Rs?10?lakh family floater.

Short?Term Repairs: Clear Costly Loans Fast
Credit?card debt costs high interest.

Pay the four dues within two months.

Use Rs?24,000 from savings for quick closure.

Car loan has fair rate. Two years left.

Keep paying EMI on schedule.

Avoid early closure now. Interest left is small.

Free cash should feed investment goals instead.

Strengthen Emergency Cushion
Target six months of expenses plus EMIs.

Needed buffer equals Rs?48k + 12k = Rs?60k monthly.

Six months buffer equals Rs?3.6?lakh.

Place buffer in liquid mutual fund.

Continue topping until full buffer reached.

Never park emergency cash in ULIP or PPF.

Review and Act on ULIP
ULIP mixes insurance and investing.

Returns often below pure equity funds.

Premium eats into cash flow heavily.

Check lock?in period end date.

If five years complete, surrender immediately.

If lock?in ongoing, stop further premiums.

Convert policy to paid?up mode.

Redirect freed Rs?15,000 monthly to mutual funds.

Use SIP via regular plan through CFP?backed MFD.

Recurring Deposit Assessment
RD suits goals within five years.

You need Rs?15?lakh in five years.

Current RD gives certain corpus.

Continue RD but cap at Rs?12,000 monthly.

Do not extend RD term beyond goal date.

Goal?Wise Buckets
Five?year goal: Rs?15?lakh

RD monthly Rs?12,000 continues.

Add Rs?5,000 monthly to conservative hybrid fund.

Shift hybrid part to low?duration debt in year four.

Ten?year goal: Rs?70?lakh

Channel Rs?25,000 monthly to flexi?cap equity funds.

Use three diversified active funds.

Invest through regular plans only.

Review performance every six months.

Gradually move 30?% to hybrid during year eight.

Fifteen?year goal: Rs?50?lakh

Allocate Rs?15,000 monthly to mid?cap fund.

Keep sip discipline for twelve years.

Shift gains to balanced advantage fund afterward.

Twenty?year goal: Rs?1.5?crore

Increase NPS contribution by Rs?5,000 monthly.

Add Rs?10,000 monthly SIP in multicap fund.

Let PPF contributions continue yearly at Rs?1.5?lakh.

PPF plus NPS plus equity give inflation?beating corpus.

Monthly Cash?Flow Layout After Shifts
Salary in hand Rs?170,000.

Household spend Rs?48,000.

Car EMI Rs?12,000.

Mutual fund SIPs old Rs?38,000.

New equity SIPs from ULIP stop Rs?15,000.

New hybrid SIP Rs?5,000.

NPS top?up Rs?5,000.

Emergency build Rs?10,000 (until buffer ready).

RD Rs?12,000.

Available surplus each month now fully used.

If hikes come, raise equity SIPs first.

Portfolio Mix After Adjustment
Large?cap 40?%

Flexi?cap 25?%

Mid?cap 15?%

Conservative hybrid 10?%

Balanced advantage 10?%

This mix suits age 46 risk profile.

Protection Enhancements
Term cover adequate at Rs?1.5?crore.

Keep nominee details updated.

Health cover Rs?10?lakh might be low later.

Buy super top?up of Rs?15?lakh.

Premium low if done this year.

Check critical illness rider as well.

Tax Efficiency Steps
PPF full limit cuts taxable income.

NPS extra Rs?50,000 gives 80CCD(1B) benefit.

Equity fund gains above Rs?1.25?lakh taxed 12.5?%.

Debt fund gains taxed at slab.

Plan redemptions in slices to stay below threshold.

Review Schedule
Semi?annual meeting with CFP?backed MFD.

Compare each fund to category average.

Switch out if trailing badly for four quarters.

Check goal progress percentages.

Rebalance if equity weight drifts 10?% off.

Behaviour Rules
Never pause SIPs during market falls.

Avoid new credit card EMI schemes.

Resist fresh car purchase until this loan ends.

Keep lifestyle inflation under salary growth.

Children’s Future Security
Sukanya for daughter continues yearly.

After RD goal hits, direct that Rs?12k to Sukanya or child fund.

Shift Sukanya gains to hybrid when she turns 13.

For son, start a separate equity SIP Rs?5,000 from next increment.

Estate and Documentation
Draft a simple Will within six months.

List mutual fund folio numbers clearly.

Mention PPF, NPS, term plan nominees.

Store documents digitally and in hard copy.

Action List for Coming Week
Pay remaining four credit card EMIs early.

Contact insurer to stop ULIP premiums.

Open three new mutual fund folios via CFP?guided MFD.

Set up fresh SIP mandates as per bucket plan.

Increase NPS contribution online by Rs?5,000.

Open super top?up health policy.

Set auto transfer Rs?10,000 to liquid fund for emergency.

Final Insights
Small steady moves create big future gains.
Clear the costliest loans first.
Redirect every freed rupee into goal?aligned SIPs.
Keep portfolio under expert watch.
Stay invested for twenty years with discipline.
Your targets of Rs?15?lakh, Rs?70?lakh, Rs?50?lakh, and Rs?1.5?crore then become realistic milestones rather than distant wishes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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