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Ramalingam Kalirajan |11072 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

Asked by Anonymous - Jul 22, 2025Hindi

Am 36 yrs old male software employee . I have savings of 15 lacs in stocks 2 lacs+ mutual fund 13 lacs I have started into investment very late I due to company change got some us stocks of approx 1.4 cr which I don't know how much i can claim once I start selling them and tax how it will calculate how much i will after all deduction As of now us stocks are going up and down fluctuating currently almost 20 lakhs dropped from last profit but it will settle down in sometime i feel Apart from that I have few debts like Home loan 1.2 cr Personal 15 lakhs Extra deductions to be spent like around 35 lakhs in coming 6 to 8 months due to renovation commitments and interiors I want to know how to manage wealth now Am salaried employee earning around 2.3 lakhs per month after all cuttings Ofcourse currently due to debts and home expenditure and investment plans My whole salary approx 2 lakhs are spent I want to plan future in better way i have a kid 8 months old want to secure his life and our family and future expenses well Please suggest me how to do that What are the things I can plan make corrections now

Ans: You have shared all the details openly.
That shows a clear intent to improve.
You’re at the right age to course correct.
Even with debts, you can plan better.

You have decent assets and growing income.
Debt is temporary if managed well.
Let’s look at this from every angle.

? Current Financial Overview Needs Restructuring

– You’re 36 with Rs.2.3 lakh monthly take-home.
– Expenses and EMIs take away almost all income.
– No surplus for savings currently.

– You have Rs.15 lakh in Indian stocks.
– Rs.2 lakh+ in mutual funds.
– Rs.1.4 crore worth in US stocks.

– Home loan is Rs.1.2 crore.
– Personal loan is Rs.15 lakh.
– Upcoming Rs.35 lakh expenses in next 6–8 months.

– Overall, there’s asset base.
– But liquidity and cash flow are weak.

? Stock Holdings: Evaluate, Don’t Panic

– Rs.1.4 crore in US stocks is your biggest asset.
– It is market linked and volatile.
– Currently dropped Rs.20 lakh in value.

– Don’t panic sell during dips.
– Stock markets recover with time.

– Understand tax before selling US stocks.
– Gains are taxed in India under foreign income.
– Tax depends on holding period and your income slab.

– Use DTAA benefit (Double Taxation Avoidance Agreement).
– Tax paid in US can be adjusted here.
– A Certified Financial Planner with global tax exposure can help.

– Don’t convert full US holding at once.
– Partial withdrawal over years is smarter.
– Spread out capital gains.
– Lower tax and better rupee planning.

? Mutual Fund Strategy Needs Strengthening

– Rs.2 lakh is very low for your age.
– Increase mutual fund allocation gradually.
– Prioritise actively managed mutual funds.

– Avoid index funds.
– Index funds follow the market.
– They don’t protect in falling markets.

– Active funds give flexibility.
– Fund managers make tactical decisions.
– Better suited for wealth building.

– Also avoid direct mutual fund plans.
– Direct plans have no personalised advice.

– Regular funds through MFD and CFP offer guided rebalancing.
– That protects wealth in volatile times.

? Debt Position Is Manageable with Discipline

– Rs.1.2 crore home loan is long term.
– Keep it with lowest interest rate.

– Don’t prepay it now.
– Instead, focus on personal loan first.

– Personal loan interest is higher.
– Try to close that in 1–2 years.

– Don’t take any new loans now.
– Avoid using credit cards for renovation.

– Plan renovation budget wisely.
– Rs.35 lakh is a big spend.
– Ensure it won’t derail basic financial goals.

– Postpone some luxuries if needed.
– Keep long-term future intact.

? Budgeting and Monthly Discipline Is Urgent

– Track every rupee spent now.
– Create a fixed monthly budget.

– Allocate funds for EMI, bills, needs.
– Keep Rs.10k–Rs.15k minimum for investments.

– Even small SIP is better than nothing.
– Starting is more important than amount.

– Monitor expenses using simple apps.
– Involve spouse in planning too.

– Plan home spends with savings, not loans.
– Be careful till income rises again.

? Secure Your Child’s Future Systematically

– Your child is 8 months old.
– Education cost will rise fast.

– Open a goal-based mutual fund SIP.
– Even Rs.2,000 monthly is a good start.

– Increase it when your surplus improves.

– Avoid insurance plans for education.
– They give poor return and low flexibility.

– Choose growth-focused equity mutual funds.
– Stay invested for next 15–18 years.

– Review progress every 2 years.

– SSY can be added later for safety.
– For now, focus on mutual funds.

? Insurance Needs Immediate Attention

– You have not mentioned personal term insurance.
– Get Rs.1 crore term plan immediately.

– Choose coverage till age 65 or 70.
– It’s cheap if bought young.

– Don’t depend on employer insurance.
– They stop with job.

– Buy health insurance of Rs.10 lakh.
– Cover family under one floater plan.

– Add top-up if budget permits.
– Medical costs can ruin finances otherwise.

– Insurance is not investment.
– But it protects your investment journey.

? Emergency Fund Should Be Priority

– Emergency fund gives peace of mind.
– It prevents loan dependence during crisis.

– Build minimum Rs.2 lakh now.
– Slowly increase to Rs.5 lakh.

– Use liquid mutual funds for this.
– Don’t use savings account or FDs.

– Emergency fund is not for travel or gifts.
– Use only during job loss or medical need.

? Future Wealth Plan Needs Clear Goals

– Define your key life goals now.
– Home loan closure is one.
– Child’s education is another.
– Retirement is a must-have goal.

– Create timelines for each goal.
– Start separate SIP for each.

– Link SIPs to mutual fund folios.
– Track progress regularly.

– Don’t use one fund for all goals.
– Keep them separate and purpose driven.

– Build wealth step by step.
– Stay consistent through ups and downs.

? Retirement Planning Must Start Early

– You are 36 now.
– Retirement is just 20–25 years away.

– Don’t postpone it further.
– Start with even Rs.5,000 per month.

– Increase SIP every year by 10%.
– Use only actively managed mutual funds.

– Don’t rely only on EPF or company NPS.
– Create independent retirement corpus.

– Equity mutual funds give best compounding.
– Avoid mixing retirement with other goals.

– Review corpus every 3–4 years.

? Review US Stock Wealth Allocation

– US stocks give global exposure.
– But keep eye on currency risk too.

– Convert small parts to rupees gradually.
– Move into mutual funds with rupee focus.

– Use funds with global diversification later.
– Don’t keep all in one geography.

– Take help of Certified Financial Planner.
– They can guide US to India transfer wisely.

– Use legal and tax efficient routes only.
– Avoid direct US fund withdrawals without planning.

? Lifestyle Spending Must Be Balanced

– Renovation and interiors are lifestyle spends.
– Set strict budget and track all expenses.

– Don’t over-stretch your EMI and loan limits.
– Keep 40–45% of income for EMIs max.

– Anything above that weakens investment capacity.

– Delay some luxuries for long-term wealth.
– A few years of discipline gives lifetime results.

? Final Insights

– You started late but can still build wealth.
– You have strong asset base.
– Reduce debt slowly, starting with personal loan.

– Begin mutual fund SIP immediately.
– Shift US stock profits to India step-by-step.

– Don’t panic over market drops.
– Stay invested with discipline.

– Buy term and health insurance this month.
– Build emergency fund over next 6 months.

– Track every rupee.
– Spend less than you earn.
– Invest the rest wisely.

– Keep life goals separate and simple.
– Stay focused on the long game.

– Involve your spouse in every decision.
– Talk openly and plan together.

– Stick to the plan.
– Review and adjust yearly.
– You can secure your family’s future with clarity and care.

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

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