I am 35 Year old with an monthly income of Rs 60k. I have SIP of Rs 12500 per month, Provident Fund-10000Per Month, 2500 per month lic. I had purchased in 2020 and now the value is around 30lac. I have an investment of Rs 11 lacs in stocks. I am paying 12500 for emi for next 3 years other than that no debt.

Ans: Your progress is truly inspiring.

At 35, with Rs 60,000 monthly income, a Rs 12,500 SIP, Rs 10,000 PF, LIC premium, stock investments and an EMI that ends in 3 years — your structure shows focus.

Many miss this balance. You’ve built it. Let us now evaluate it from every angle to help you grow further.

Below is your 360-degree financial roadmap.

? Income and Expense Snapshot

– Monthly income is Rs 60,000.

– SIP is Rs 12,500.

– PF is Rs 10,000.

– LIC premium is Rs 2,500.

– EMI is Rs 12,500.

– Fixed commitments total Rs 37,500.

– Balance left is Rs 22,500 per month.

– You’re already saving more than 30%.

That’s very healthy. Many at this stage do not manage even 20%.

You’ve done well to strike this early habit.

? SIP Strategy Assessment

– Rs 12,500 monthly SIP is around 20% of your income.

– A strong start for long-term wealth building.

– But we must assess the quality of funds.

– Ensure your funds are not all smallcap or high-risk.

– A mix of large, flexi-cap, and balanced categories is better.

– If you invest through regular plans with MFD support, continue that.

– Regular plans give you long-term guidance from a Certified Financial Planner.

– Direct funds lack accountability and human advice.

– Market ups and downs can mislead DIY investors.

– Consistency matters more than fund ranking.

– Invest in funds that match your time horizon and risk level.

– SIPs are not short-term tools.

– Hold for 7+ years minimum for good compounding.

– Also, review your SIP portfolio every year.

– Adjust only if needed, not frequently.

– Avoid thematic or sectoral funds unless your SIP is over Rs 30,000.

– SIP is not just investment. It is long-term discipline.

You’re already following that. That deserves appreciation.

? Provident Fund Analysis

– Rs 10,000 per month into PF gives you debt-side stability.

– This is an excellent way to build safe wealth.

– PF also gives EEE tax benefit.

– Let it grow for the long term.

– Don't withdraw unless truly required.

– It acts as your future security cushion.

– The return may not beat inflation much.

– But the risk is zero.

– That balances the market risk from SIPs.

– So overall your risk profile is balanced well.

You’ve planned this wisely.

? LIC Policy Status

– You pay Rs 2,500 per month in LIC.

– This is likely a traditional endowment or moneyback policy.

– Most LIC plans offer 4% to 5% returns.

– These are not ideal as wealth creation tools.

– They mix insurance and investment.

– That reduces both efficiency and flexibility.

– You should assess surrender value.

– If you’ve completed over 3 years, surrendering is possible.

– You may reinvest the surrender proceeds in mutual funds.

– Take pure term insurance for protection.

– Don’t combine investment with insurance.

– Check your total life cover.

– If below Rs 50 lakhs, increase via term plan.

– Avoid ULIPs and endowment schemes going forward.

This small shift can make a huge difference.

? EMI Management and Loan Planning

– EMI of Rs 12,500 is manageable now.

– It will end in 3 years.

– Once it ends, redirect this amount fully to investments.

– Don't increase lifestyle expenses post EMI closure.

– Rs 12,500 extra SIP can double your wealth pace.

– Try to pre-close the loan if possible without penalty.

– But do not compromise SIPs or emergency fund for it.

– Home loan interest may offer tax benefit.

– But all debt must end before retirement.

– So plan ahead.

Debt-free is peaceful living. That should be your aim.

? Stock Market Investment Evaluation

– You’ve invested Rs 11 lakhs in stocks.

– That’s a bold and confident move.

– But direct stocks carry high risk.

– Ensure these are fundamentally strong companies.

– Avoid penny stocks, tips, or quick trades.

– If these are old investments, review performance annually.

– Trim loss-making or stagnant ones.

– Focus more on mutual funds over direct stocks.

– Mutual funds give better diversification and research depth.

– They are professionally managed.

– Especially regular plans through MFD with CFP support give more stability.

– Direct stocks need active attention and frequent tracking.

– In long run, mutual funds outperform for most salaried investors.

Your approach is courageous. But shift slowly towards structured wealth tools.

? Emergency Fund Readiness

– You didn’t mention emergency corpus.

– It is very essential.

– You should maintain 6 months’ expenses in liquid form.

– Around Rs 1.5 to 2 lakhs minimum.

– Keep it in a liquid fund or sweep-in FD.

– Do not touch it for SIP or purchases.

– This gives peace of mind during uncertainty.

– It also avoids premature withdrawals.

This one habit saves families during crisis. Please build this soon.

? Insurance Adequacy Check

– You haven’t mentioned term insurance.

– If you don’t have one, take it now.

– Minimum Rs 50 lakhs cover is required.

– Rs 1 crore is safer.

– Pure term plan is cheap and efficient.

– LIC or endowment cover is not sufficient.

– Also check if you have health insurance.

– Minimum Rs 5 lakhs cover for self is necessary.

– If married, include spouse.

– Medical costs are rising fast.

– Without this, savings will suffer during illness.

– Never depend only on employer insurance.

Insurance gives protection, not return. Keep that mindset.

? Lifestyle Management and Budgeting

– You have Rs 22,500 after all deductions.

– Track your spending carefully.

– Allocate Rs 5,000 to lifestyle or enjoyment.

– Allocate Rs 2,000 to short-term goals like travel or gadgets.

– Allocate Rs 15,000 to emergency and surplus savings.

– Use free mobile apps for tracking.

– Limit online shopping and subscriptions.

– Simple habits lead to massive results.

Discipline is your biggest investment tool. Keep it sharp.

? Future Planning for Big Goals

– You are 35 now.

– You have 20+ years for wealth creation.

– Think of goals like retirement, child education, house upgrade.

– Assign timelines and amounts.

– Use SIPs and mutual funds to match those goals.

– For retirement, SIP for 15 years minimum.

– For education or house, SIP for 7 to 10 years.

– Increase SIP every year by Rs 2,000 at least.

– Even small increases lead to large gains.

– Avoid lump sum in direct stocks or traditional policies.

– Review your goals every year.

Planning gives direction to every rupee. That’s your real growth path.

? Tax Planning Suggestions

– You already use PF, LIC, and SIP.

– That covers most of your Rs 1.5 lakh 80C limit.

– Avoid investing in ELSS just for tax saving.

– Make sure you don’t overlap tax planning and investment goals.

– Focus more on goal-based investing than tax-saving alone.

– If you want extra tax savings, use NPS.

– But only if your Section 80C is fully utilised.

– Avoid tax-saving FDs or ULIPs.

Tax is not the enemy. Misaligned saving is.

? What to Do Next

– Review your mutual fund portfolio.

– Continue only diversified regular funds via MFD and CFP.

– Exit poor-performing or high-risk ones.

– Reinvest LIC after surrender.

– Maintain emergency fund of Rs 2 lakhs.

– Buy pure term insurance cover of Rs 1 crore.

– Add medical cover for self and family.

– Create goal plan for next 20 years.

– Increase SIP every year without fail.

– Reduce direct stock exposure over time.

– Use free or simple tools to track all your plans.

These steps don’t need lakhs. They need clarity. And you have that strength.

? Finally

– You’ve shown good financial control at 35.

– SIP, PF, stock, LIC, EMI — you’ve juggled it all.

– Now comes the time to sharpen.

– Sharpen with better products.

– Sharpen with protection like term insurance.

– Sharpen with purpose-driven investing.

– Focus on what matters.

– Let go of cluttered products.

– And celebrate the path you’ve already built.

– You are well on track.

– Just adjust and align.

– The rest will compound naturally.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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