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Ramalingam Kalirajan |10893 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 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

Question by Rajat on Jul 02, 2025Hindi

Hi I am 36 years of old ,and have 2.15Lakh monthly salary wife have 40k salary and getting 25k monthly rent from my flat Expenses- I have fixed 60k monthly home loan emi It will be for next 68 months 33L loan remaining Home expenses and current home rent is about 60-70k Monthly savings - 1.3L Savings started now putting in mostly smallcap mutual funds Assets One flat approx 70L Mutual fund and stocks 32L Cash saving deposits - 7L Pf 16L I have done all medical, life , loan insurance Have one daughter of 3 yrs Please suggest how to have enough wealth for retirement and daughter study, marriage

Ans: I’ll go goal by goal and connect every aspect with your real-life situation.

Your Home Loan Strategy
You have a home loan EMI of Rs?60,000 per month.
It will continue for the next 68 months.
The outstanding principal is around Rs?33?lakh.

You are paying this loan comfortably.
That is because of your high combined income of Rs?2.8?lakh.
It includes your income, your wife’s salary, and rental income.

During these 68 months, make timely payments.
Avoid extending the loan duration further.
Try to prepay small lumpsums during the year.
Prepayment will reduce either EMI burden or tenure.
Choose the option that reduces tenure.
This helps save more interest in the long run.

Use any yearly bonus or performance incentive wisely.
You can use a part of that amount for prepayment.
Once the EMI ends, you will save Rs?60,000 monthly.
That saving should directly go into goal-based investments.

Emergency Fund Management
You are already maintaining Rs?7?lakh in cash and deposits.
That’s a strong base for emergencies.

Your monthly expenses and EMI total up to Rs?1.2–1.3?lakh.
This means your emergency corpus covers about 6 months.

That is sufficient for now.
But ensure this money is not lying in savings account.
Savings accounts don’t give good returns.
Shift the amount into liquid or ultra-short-term mutual funds.
They are safe and offer better returns than savings accounts.
Keep this fund untouched, only for real emergencies.

Also review this corpus annually.
As your income and lifestyle rise, your buffer must grow too.

Planning for Your Daughter’s Education
Your daughter is just 3 years old.
She will need money for higher education after 15 years.
That means you have a long and favourable investment window.

The education cost after 15 years can be very high.
Due to inflation, expect the need of Rs?1.5–2 crore.

To achieve this, start investing immediately in a separate goal plan.
You already save Rs?1.3 lakh monthly.
You can allocate Rs?40,000 per month now toward her education.

Invest this amount via SIP in a mix of equity and hybrid mutual funds.
For the first 10 years, keep high equity exposure—around 75 to 80 percent.
This gives your portfolio growth potential.
In the last 5 years, start shifting to hybrid and debt funds.
This protects the capital as the education goal gets closer.

Use goal-specific mutual fund folios.
Label it clearly as “Daughter Education” to track easily.
Avoid investing only in small-cap funds for this goal.
They are too volatile and not ideal for single long-term goal.

Actively managed funds perform better over time.
They adjust to market shifts and protect your downside.
Index funds lack this flexibility and underperform in falling markets.

So use actively managed diversified equity and hybrid mutual funds.
Invest through regular plans with guidance from a CFP.
Direct funds miss that strategic support, which may cost you returns.

Planning for Daughter’s Marriage
Marriage is likely around 25 years from now.
This is another long-term goal with high cost due to inflation.

Start investing now with a long view.
Currently, allocate Rs?20,000 monthly for this goal.
Once your home loan EMI ends, increase this to Rs?40–50?k monthly.

Use a separate investment folio for this goal.
Label it as “Daughter Marriage”.
Start with 80% equity, and 20% in hybrid funds.
This gives long-term compounding with some safety.

Around 5 years before the marriage, shift to safer debt funds.
This will protect capital from short-term market falls.
You can do this via Systematic Transfer Plans (STPs).

Continue to review the plan every year.
Adjust SIP amounts if needed based on inflation trends.
This goal gives you enough time to benefit from market cycles.

Avoid index-only funds here too.
They don’t offer downside risk management.
Use active mutual funds with a long track record.

Invest through regular funds under guidance.
Avoid direct investing for such a sensitive long-term goal.

Retirement Planning – A 24-Year View
You are now 36 years old.
That gives you 24 years until age 60.

Your current mutual fund and stock investments are Rs?32?lakh.
You have EPF of Rs?16?lakh, which supports retirement.
Together, that’s a good starting point.

But retirement corpus will require a lot more.
Due to inflation, cost of living doubles every 12–15 years.
Your current expenses of Rs?1.3 lakh/month may go up significantly.

Therefore, retirement needs its own focused investment strategy.
You already save Rs?1.3 lakh monthly.
You can allocate Rs?30,000 monthly now for retirement.

Once the home loan EMI ends, increase this to Rs?60,000.
You can also shift part of your rental income here.
That can add Rs?10,000–15,000 monthly to retirement bucket.

For the next 10–15 years, stay invested with 65% equity exposure.
Remaining 35% can be in hybrid and debt funds.
Equity gives you growth and wealth creation.
Hybrid funds offer stability.

As you cross age 50, start reducing equity exposure.
Shift to more conservative hybrid and debt options.
This protects the corpus when you are closer to retirement.

Use a separate folio for retirement.
Track it individually and review yearly.
Increase SIP as income rises or bonuses come in.

Continue contributing to EPF.
Also consider adding to NPS or PPF for tax saving and debt allocation.
But don’t rely on annuities or real estate as retirement tools.
They offer low flexibility and poor returns.

Also note: Equity mutual funds now have new capital gain tax rules.
LTCG above Rs?1.25 lakh is taxed at 12.5%.
Short-term capital gains are taxed at 20%.
Plan redemption smartly through a Certified Financial Planner to reduce tax hit.

Portfolio Monitoring and Rebalancing
Every year, review your complete portfolio.
For each goal, check if investments are on track.

Rebalancing is essential to avoid overexposure to equity.
If equity grows faster, rebalance into hybrid or debt.
This keeps risk under control and avoids sudden shocks.

Don’t delay rebalancing due to fear or greed.
Your Certified Financial Planner will assist here.
Avoid investing based on news, social media, or herd behaviour.

Direct plan investors often miss this rebalancing.
This leads to poor returns or missed goals.
Stick with regular plans and use expert reviews for success.

Tax Strategy and Smart Withdrawals
Use long-term plans to reduce capital gain taxes.
Do not exit mutual funds randomly.
Plan redemption when your income is low or during retirement.

Hold equity for over one year to enjoy lower tax.
Use STP to shift money slowly to reduce tax spikes.
Your CFP will help create a tax-efficient withdrawal schedule.

Invest in NPS or PPF to get 80C benefit.
Also use 80D for health insurance tax benefits.
Avoid investing in life insurance policies for tax only.
Keep investment and insurance separate.

Final Insights
You are earning well and saving consistently.
You are already debt-protected and insured.
Now focus on goal-based investing, not just returns.

Investing randomly in small-cap or trending funds will not help.
Structure your savings into separate goal buckets.
Use diversified mutual funds actively managed by professionals.
Stay away from index-only and direct plans.

Every financial goal needs a clear path.
Use different funds, different folios, and different allocations.
Monitor them regularly and stay disciplined.

Your Certified Financial Planner brings long-term commitment, review, and objectivity.
This guidance ensures you don’t fall off track even in volatile markets.

Each rupee you save today has the power to build wealth tomorrow.
Structure it properly and review it wisely.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Asked on - Jul 03, 2025 | Answered on Jul 04, 2025

Thanks sir it helps a lot

Ans: You’re most welcome, Rajat.

It’s great to see your proactive approach at this stage.
Consistency and structure will take you far in wealth creation.
Your goals are clear. The income flow is strong.
Now just stay focused, review yearly, and avoid distractions.

If you ever feel confused in future, reach out again.
Clarity always comes through planning with purpose.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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