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Ramalingam Kalirajan |10894 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jul 30, 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
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 - Jul 17, 2025Hindi
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
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
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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