I am 37 from Ghaziabad. I am an HR professional.I had liabilities due to some losses I faced during Covid that I had to pay in the next 3 years. I am currently looking to invest some amount to create my portfolio. As of now my only SIP is...

I am 37 from Ghaziabad. I am an HR professional.I had liabilities due to some losses I faced during Covid that I had to pay in the next 3 years.

I am currently looking to invest some amount to create my portfolio. As of now my only SIP is running which is 1k in Axis Blue Chipfund - Direct Growth from the past 11 months.

I need to create wealth for my daughter's education / marriage / my retirement approx 3-4 crore minimum.

Please suggest what investments I can do and how much amount I should invest for now to create a good portfolio down the line 15 years I should not regret. Also please share the funds or invest plan names for long term with great benefits or returns and tax can also be saved in maturity amount.

Please let me know if any more information is required

Ans: Hello Amandeep. I understand you have multiple goals for the next decade. If you want to build a corpus of 3-4 Cr, it's advisable to start investing in sips more and more. Say a monthly sum of approximately Rs 44,000 sips.

You can add on some funds annually to reach to sip investments to 44 k. Kindly find below suggested schemes that may accomplish your future goals.

SBI Small Cap Fund
Nippon India Growth Fund
PGIM India Flexicap Fund
Canara Robeco Emerging Equities Fund
Mirae Asset Tax Saver Fund- contains lock in period

Ans: At 49, with government pension and steady savings, you are already on a strong track.

You still have 11–12 years till retirement.

Let’s build a 360-degree financial strategy for your retirement and your daughters’ future.

Your Financial Strengths Are Solid

Age 49 with secure monthly income of Rs 1,40,000.

You are a government employee. So, pension will be assured.

You already save Rs 50,000 monthly. That’s a strong habit.

You have Rs 20 lakh fixed deposit and Rs 20 lakh emergency fund.

Plot worth Rs 1.2 crore. Though we won’t count it for now, it adds backup.

Two daughters – elder in Class 11, younger in Class 8.

Your approach is conservative and disciplined. That is highly appreciated.

Now we must make your money work better for you.

Emergency Fund Is Healthy – But Review Allocation

You hold Rs 20 lakh as emergency fund. That is more than sufficient.

Ideally, Rs 6–8 lakh is enough as emergency for your stage.

Keep 6 months’ expenses + Rs 5 lakh for medical buffer.

Move the extra Rs 10–12 lakh into planned investment.

Keeping too much in emergency brings zero growth.

That money should support your goals instead.

PPF and RD – Low Growth Over Long Term

You are putting Rs 20,000/month in PPF and Rs 20,000/month in RD.

These are safe but give low returns.

Let us evaluate them one by one:

PPF:

Lock-in till age 60.

Gives 7% interest approx.

No regular income from it during retirement.

RD:

Fully taxable interest.

No inflation beating growth.

Returns are around 6.5% currently.

You need more growth. You also need flexibility.

These two alone will not build a sufficient retirement corpus.

Please reduce your RD and PPF contribution to Rs 10,000 each.

Free up Rs 20,000 monthly for higher growth investments.

Mutual Fund SIP – Needs Increase and Diversification

Currently, you invest Rs 10,000 in mutual funds.

This is too low given your surplus and time frame.

You are retiring in 2036. So, 11 years remain.

This is enough to benefit from equity mutual funds.

Use actively managed regular funds through a Certified Financial Planner.

Avoid direct plans:

Direct plans offer no review, guidance, or goal mapping.

They seem cheaper but lead to poor choices.

Avoid index funds:

Index funds blindly copy markets.

No strategy in falling markets.

Underperform during volatility.

You need a portfolio with flexi-cap, large & mid-cap, and hybrid equity funds.

Start with Rs 25,000/month SIP in diversified mutual funds.

Gradually increase to Rs 30,000–35,000 per month in 2 years.

Split SIP across 3–4 categories.

Let a CFP design this basket properly.

FD of Rs 20 Lakh – Re-allocate with Planning

You have Rs 20 lakh in FD.

FD gives low returns and full tax on interest.

It is not suitable for long-term wealth creation.

Here’s a better plan:

Keep Rs 5 lakh in FD for next 1–2 years’ planned expenses.

Move Rs 10–12 lakh to lump sum mutual funds with 7+ years horizon.

Use the balance Rs 3–5 lakh in a debt mutual fund for short-term needs.

This will increase returns without losing safety.

A Certified Financial Planner can map it with your goals.

Plan Your Retirement with Goal-Based Corpus Strategy

You are retiring in 2036, at age 60.

Pension will support your basic monthly needs.

But inflation will slowly reduce its power.

You need a parallel retirement corpus.

Target minimum Rs 1.5–2 crore by 2036 for comfortable future.

This must cover:

Medical costs

Lifestyle needs

Daughter’s post-marriage support

Any travel or family plans

Here’s how to do it:

Continue investing Rs 25,000–30,000 in mutual funds

Keep PPF till retirement. Don’t withdraw before

Convert part of your existing FD into equity-based funds

Review annually and rebalance as per risk

This gives you dual support: pension and portfolio income.

Daughters’ Education and Marriage – Act Now

Your elder daughter is in Class 11. She will need college funding in 1–2 years.

Your younger daughter has 4–5 years till graduation.

Plan separately for each:

Use part of FD or emergency fund for elder’s college

Begin a new SIP of Rs 10,000/month for younger one’s graduation and marriage

Target Rs 10–15 lakh per daughter in today’s cost

Increase SIP yearly as per income growth

Avoid using PPF or RDs for this.

Education and marriage are predictable goals. Mutual funds suit these.

You still have time if you begin now.

Insurance Policies – Evaluate Carefully

You didn’t mention LIC or ULIP.

If you hold any such investment-cum-insurance, please review:

LIC endowment and ULIP give poor returns

If maturity is after 2036, consider surrender and reinvest in mutual funds

Use only term insurance for risk protection

Ensure you have family floater health insurance for all

This step alone can unlock lakhs for your wealth creation.

Avoid Real Estate for Retirement or Investment

You already have a plot worth Rs 1.2 crore.

Don’t buy more property. Don’t build a house to rent or sell.

Property:

Locks huge capital

Brings legal and maintenance burden

No regular liquidity

Difficult to sell fast in emergency

Use mutual funds instead.

They are flexible, tax efficient, and goal-oriented.

Review and Rebalance Annually with a CFP

Please don’t forget this step.

Track mutual fund performance

Check if goal targets are on course

Switch poor funds if needed

Reallocate between equity and debt as you near retirement

Work with a Certified Financial Planner regularly.

Avoid DIY decisions. Avoid advice from social media or friends.

Each rupee must serve a goal.

Your Ideal Monthly Allocation Plan From Now

Your income is Rs 1,40,000/month.

You save Rs 50,000 currently. Let us reshape this:

Rs 10,000 in PPF

Rs 10,000 in RD

Rs 25,000 in mutual funds (increase to Rs 30,000 in 2 years)

Rs 5,000 in daughter’s education plan

Rs 5,000 for health premium or future term plan

Remaining Rs 90,000 covers expenses.

If you get any bonus, add to your mutual fund lump sum pool.

Use every hike to boost your SIP by 10–15%.

Finally

You are doing well already. You have strong habits and no major liabilities.

But some reallocation is needed.

Your PPF and RD are low-growth options.

Mutual funds offer flexibility and long-term returns.

Avoid direct and index funds. Use regular actively managed funds.

Build a dedicated education and retirement corpus.

Use FD and emergency cash better. Review policies if any.

Avoid property and high-tax FDs for retirement.

Your pension is a good foundation. Add mutual fund growth to build financial independence.

Please get help from a CFP for clarity and monitoring.

You are on the right path. Keep going with focus.

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