rediff.com
Rediff Gurus Logo
Home > Money > Question
Language:
Now in हिन्दी too
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 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 - Jun 13, 2025Hindi
Money

I am 38 years old. I get 2.1 lakh in hand salary every month. I dont have any loans. I have one 4 years daughter. I have 8 lakhs in FD, 22k in RD(3k every month), 6 lakhs in PPF, 16 lakhs in EPF, 42 lakhs in MF (on going 35k SIP) and 6 lakhs in NPS. My plan is to save 5 CR in next 10 years and also want to buy new house. Please suggest a plan and also share me the next steps.

Ans: At age 38, with no loans, stable salary, and strong saving habits, you are in a great position.

Still, a goal of Rs 5 crore in 10 years and buying a house needs precise action. Let’s look at your full picture, then create a step-by-step strategy for the next decade.

Monthly Income and Savings Flow
Your monthly in-hand salary is Rs 2.1 lakhs. That is a strong income base.

You are already saving Rs 35,000 in mutual fund SIPs, and Rs 3,000 in RD.

 

You have Rs 22,000 in RD. Continue till maturity. Then redirect to better investment.

 

Your current savings rate is roughly 20%. This is good but needs to be raised.

 

Aim to increase savings to 30–35% monthly over the next two years.

 

Every Rs 10,000 saved monthly adds serious power to your long-term corpus.

 

Keep lifestyle expenses controlled even as income grows. Avoid lifestyle creep.

 

Assets and Allocation Summary
Let us break down your asset structure.

Rs 8 lakhs in fixed deposit

Rs 22k in RD

Rs 6 lakhs in PPF

Rs 16 lakhs in EPF

Rs 42 lakhs in mutual funds

Rs 6 lakhs in NPS

Total corpus = Around Rs 78 lakhs

Your overall structure is healthy. Still, improvements can give better growth.

 

Your fixed deposit and RD together hold Rs 8.2 lakhs. That’s too much in low-return assets.

 

Inflation eats FD returns. Redeem or break this after maturity. Shift to liquid and hybrid funds.

 

EPF and PPF are fine for fixed income portion. But they are not wealth compounding engines.

 

Mutual funds should be your main vehicle for wealth creation. You are on the right track.

 

Corpus Target of Rs 5 Crore in 10 Years
This is an ambitious and realistic goal. But it needs precision and commitment.

At 38, you have just 10–12 years to reach age 50. That’s a short window.

 

You already have Rs 78 lakhs corpus. If used well, this becomes your growth engine.

 

You need to invest aggressively, review often, and avoid breaks in SIPs.

 

Increase your SIP from Rs 35,000 to Rs 50,000 within 6–12 months.

 

Increase SIP by Rs 5,000 every year. Keep this as a fixed annual rule.

 

Avoid putting fresh savings in RD or FD. Move fully into hybrid and equity mutual funds.

 

Use regular plans through a CFP-backed MFD. Regular plans give proper fund review and guidance.

 

Do not shift to direct funds. They lack review, tax planning, and goal clarity.

 

Buying a House – How to Plan It
You also want to buy a house. Let’s separate this from your Rs 5 crore wealth goal.

Buying a house must not disturb your investment for future financial freedom.

 

Avoid taking a high EMI home loan if your goal is early retirement.

 

If you buy, use part of your EPF + matured FD + some mutual fund gains.

 

Do not exhaust your equity corpus fully to buy the house.

 

Consider postponing home purchase by 5–6 years till corpus reaches Rs 2 crore+.

 

Real estate does not compound fast. It is illiquid and does not support wealth flexibility.

 

Instead, rent for now. Focus on wealth creation through mutual funds.

 

Child Education and Long-Term Planning
You have a 4-year-old daughter. Her school and higher education need structured planning.

Allocate Rs 5,000–7,000 SIP monthly specifically for her education.

 

Use hybrid and flexi-cap funds in regular plans.

 

Tag it clearly. Do not mix with retirement or house goal funds.

 

Education goal is 12–15 years away. You can invest fully in equity for 10+ years.

 

Increase the SIP gradually. Add part of annual bonus or increment.

 

Avoid child ULIPs or insurance plans. They offer poor returns.

 

Use Sukanya Samriddhi for debt portion. Add Rs 10,000 monthly if needed.

 

Insurance and Risk Cover
No insurance was mentioned in your message. That is a serious concern.

Take a pure term plan of at least Rs 1.5 crore immediately.

 

Choose based on family expense x 20 years + education cost + loan cover (if any).

 

Do not mix insurance and investment.

 

Avoid LIC, ULIPs, endowment, or Jeevan-type plans.

 

Also buy a personal family floater health plan of Rs 10–15 lakh.

 

Government cover (if any) may not be enough and doesn’t move with you after job change.

 

Health insurance gives peace during sudden medical emergencies. Buy early.

 

Emergency Fund and Liquidity
Every investor must have a separate emergency fund. Not EPF, not FD.

Keep 6 months of expenses in a liquid fund or sweep-in FD.

 

For you, that’s around Rs 5–6 lakhs minimum.

 

This prevents breaking SIPs during job gaps, illness, or family crisis.

 

Do not touch this for investing. It is not for earning returns. It is for financial safety.

 

Park it in 2–3 liquid funds through regular plans. Use Insta-Redemption feature if needed.

 

Asset Allocation and Rebalancing Strategy
You must manage how much to put in equity vs debt every year.

Keep 70% in equity funds, 30% in debt till age 45.

 

After that, slowly reduce equity exposure every 2–3 years.

 

Use hybrid aggressive or flexi-cap funds in the middle years.

 

Include 5–10% in international equity funds after age 42–43. It adds currency diversification.

 

Do not depend on index funds. They fall fully during market crashes.

 

Actively managed funds protect better and offer better research and flexibility.

 

Regular rebalancing every 12 months is needed. A CFP-led MFD does that for you.

 

Tax Efficiency and SIP Management
Your tax planning should run with your investment planning.

Mutual fund equity LTCG above Rs 1.25 lakh is taxed at 12.5%.

 

STCG is taxed at 20%. Hold investments for more than 1 year to avoid higher tax.

 

PPF and EPF are fully tax-free. NPS gets tax benefit under 80CCD.

 

Use ELSS mutual fund if 80C space remains after EPF and PPF.

 

Use MFD to plan redemptions smartly. Split gains across years to save tax.

 

Keep SIPs date close to salary credit. Automate them. Don’t rely on manual process.

 

Suggested Next Steps
Let’s put all this into action with 10 steps:

Increase SIPs to Rs 50,000 in the next 6–12 months.

 

Take a term plan of Rs 1.5 crore and health cover of Rs 15 lakh.

 

Build an emergency fund of Rs 5–6 lakh in liquid mutual funds.

 

Stop RD and FD investments. Redeem on maturity. Redirect to mutual funds.

 

Allocate Rs 5,000–7,000 monthly for your daughter’s education in separate SIP.

 

Keep 70–75% of portfolio in equity mutual funds till age 45.

 

Do not buy property now. Delay for 5–6 years or till corpus is Rs 2 crore.

 

Review asset mix every year. Adjust based on age, market, and goals.

 

Tag each SIP with a goal — retirement, child, or house.

 

Work with a Certified Financial Planner via MFD to get alerts, rebalancing, and support.

 

Finally
You are disciplined and thoughtful. You already have a solid base at 38.

But you must push your savings rate now. This is your golden decade to build wealth.

Avoid property stress, poor insurance products, and excess FD holdings.

Use mutual funds wisely. Stick with regular plans and expert guidance. Focus on goals, not just returns.

Rs 5 crore in 10 years is achievable. You must walk the path steadily and avoid emotional detours.

Stay focused. Review annually. Increase SIPs. Protect your family.

Your financial freedom begins with today's structure.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Jun 24, 2025 | Answered on Jun 24, 2025
Adding to the above question. From this month I have increased SIP amount to 53k. I am investing in sukanya samriddhi account for my daughter (every month 10k). 10k every month to PPF account. Monthly 50k goes in household items. 10k in gold. 3k in RD and 1.5k to my daughter's RD. Remaining amount I invest in mutual fund i.e. 60 to 70k(out of 42L in mutual fund, 82% I have invested in equity fund 18% in debt fund). 8L mentioned in the first question in FD that is my emergency fund. Should I stop adding 3k in RD?
Ans: Yes, you should stop the Rs. 3,000 RD now. Redirect it to mutual funds or keep in liquid fund for better returns and flexibility.

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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

Asked by Anonymous - Jun 25, 2025Hindi
Money
Hi Sir, I'm 36 year old, with a debt of 26 lakh that include 15 lakh home loan and 11 lakh car loan. My take home salary is 2.05 L per month after additional deduction of 10.5K NPS and 10K VPF. My current saving in 27L in PF, 14L in NPS, Managing 2 PPF account with current corpus of 44L, 3 LIC policies with payment of 1.08L annually started 14 years ago and will be matured in 2040, 2 Child education plan with premium of 1 L annually and will be matured on 2035. 8 L in demat account. My wife is house wife and my child is in 4th standard. My monthly expenses approx 61K Loan EMI and 25K tution fees + household expenses. I wanted to make 5 cr corpus in next 10 years. Please guide any saving / investment plan to make it possible.
Ans: You have built a solid foundation already. At age 36, with structured savings and discipline, you are moving in the right direction. But reaching Rs. 5 crore in 10 years needs careful assessment, goal alignment, and efficient capital use.

Let’s work step-by-step to help you build the right path. This response will cover all areas of your finances from a 360-degree view.

Understanding Your Current Financial Position
– Monthly take-home is Rs. 2.05L
– Rs. 10.5K goes to NPS and Rs. 10K to VPF
– Total monthly outgo in loans is Rs. 61K
– Tuition fees and household expense total around Rs. 25K monthly
– Your surplus each month is about Rs. 1.09L
– You are financially stable with good surplus to invest
– That surplus must now be channelled efficiently

Review of Existing Investments
##Provident Fund and NPS
– You have Rs. 27L in PF and Rs. 14L in NPS
– These are safe, long-term tools for retirement
– But returns are moderate and fixed
– Don’t depend on these alone for wealth creation
– Continue contributions, but don't over-allocate here

##PPF Accounts
– Rs. 44L in two PPF accounts is significant
– PPF is safe but locked in till 15 years
– You already reached a sizable corpus here
– No need to add more to PPF now
– Returns are fixed and don’t beat inflation well

##Demat Holdings
– Rs. 8L in demat account shows risk appetite
– Stocks need deep research and time
– Continue with caution
– Avoid adding more if you can’t monitor closely
– Equity mutual funds are better for long-term growth

Analysis of Insurance Products
##LIC Policies
– You have 3 LIC policies with Rs. 1.08L annual premium
– Started 14 years ago and maturing in 2040
– These are likely endowment or money-back types
– Such plans give poor returns of 4% to 5%
– You are losing long-term growth here

– Since these were started long ago, continue them till maturity
– But don’t invest more in such plans going forward
– Avoid renewing or buying similar ones again
– Don’t use LIC for investment purpose
– Use it only for term cover if needed

##Child Education Plans
– Two policies, Rs. 1L annual premium each
– Maturing in 2035, for child education
– These are usually mix of insurance and investment
– They underperform mutual funds in long run
– Since you already invested for several years, you may continue
– But don’t buy new ones going forward

– From now on, use mutual funds for child goals
– Keep these policies until maturity if surrender value is low

Loan Analysis and Debt Strategy
– You have Rs. 15L home loan and Rs. 11L car loan
– EMI is Rs. 61K monthly
– That is reasonable, within 30% of your income
– Try to prepay the car loan in next 1 to 2 years
– It is a depreciating asset with high interest
– Don’t prepay home loan urgently now
– Let that continue for tax benefits

– If you receive bonus or surplus, first reduce car loan
– Then start investing more for wealth building

Monthly Cash Flow and Savings Ability
– Your net monthly income: Rs. 2.05L
– Loan EMI: Rs. 61K
– Tuition and household: Rs. 25K
– Surplus each month: Rs. 1.09L approx

– This is your wealth creation engine
– But it must be used well
– PPF, VPF, LIC, NPS alone will not take you to Rs. 5 crore
– You need aggressive equity investments with professional guidance

Target: Rs. 5 Crore in 10 Years
– This is a steep and ambitious goal
– But possible with right strategy and consistency
– You must invest at least Rs. 1L every month into high-growth tools
– Use only actively managed mutual funds for this goal

– Avoid index funds, they just copy the market
– They don’t protect your investment during market falls
– In contrast, actively managed funds are handled by expert fund managers
– They shift between sectors and opportunities to optimise gains
– This is crucial for a 10-year goal

– Also, avoid direct plans of mutual funds
– They may look cheaper, but they offer no guidance
– When markets fall, many direct investors stop SIPs out of fear
– Regular plans via a Certified Financial Planner offer discipline, reviews, and support
– That gives you peace of mind and better returns

– Build your mutual fund portfolio with guidance
– Use a mix of large-cap, mid-cap, flexi-cap and hybrid categories
– Review it every 6 months with your planner
– Increase SIPs yearly as income rises
– Stick to the plan even during market ups and downs

Optimising Insurance and Risk Coverage
– You didn’t mention your term insurance
– Please ensure you have at least Rs. 1.5 crore term cover
– Your child is dependent on you
– And spouse is a homemaker
– Don’t mix insurance with investment
– Keep pure term insurance separately

– Also, check your health insurance
– You must have at least Rs. 10L family floater
– Relying on corporate insurance alone is risky
– It stops if job changes or retirement happens
– Separate personal health cover is a must

Emergency Fund Planning
– You didn’t mention emergency fund
– You need at least 6 to 9 months’ expenses saved separately
– This should be kept in liquid mutual funds or FD
– Don’t touch it for investment
– Only for true emergencies like job loss or medical need

Step-by-Step Action Plan
– Start SIP of Rs. 1L per month into mutual funds
– Choose actively managed equity funds only
– Avoid index funds, direct plans, and ETFs
– Use regular plan via Certified Financial Planner

– Don’t invest more in PPF, VPF, or NPS
– Don’t take new insurance or child plans
– Shift focus towards wealth creation, not only tax saving

– Clear car loan in 2 years
– Continue home loan for tax benefit
– If you get bonus, use part for SIP top-up, part for loan prepayment

– Review SIP portfolio every 6 months
– Stick to the plan during all market cycles
– Increase SIP by 10–15% yearly as salary grows
– Avoid stopping SIPs for small short-term needs

Tax Implication on Mutual Funds
– Equity fund gains above Rs. 1.25L (after 1 year) taxed at 12.5%
– Equity gains before 1 year taxed at 20%
– Debt fund gains taxed as per your tax slab
– Keep these in mind when you plan redemptions

– Use the help of a Certified Financial Planner to manage tax-efficient withdrawals

Finally
You are financially aware and disciplined. That gives you a clear advantage.

But traditional tools like LIC, PPF, VPF, NPS alone won’t deliver Rs. 5 crore in 10 years. They are safe but too slow.

To reach your goal, the key is this:

Shift your monthly surplus of Rs. 1L to professionally managed mutual funds

Use only regular plans through Certified Financial Planner

Avoid direct or index options

Don’t stop or delay SIPs – let them grow for full 10 years

Keep emotions away from investment. Trust the process and review regularly.

This is a high goal. But you are in a strong position to chase it with right planning and expert help.

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

..Read more

Money
Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 07, 2025

Asked by Anonymous - Jun 28, 2025Hindi
Money
I am 38 years old. I get 2.1 lakh in hand salary every month. I dont have any loans. I have one 4 years daughter. I have 8 lakhs in FD as an emergency fund, 22k in RD(3k every month), 6 lakhs in PPF, 16 lakhs in EPF, 42 lakhs in MF (on going 56k SIP). Out of 42L in mutual fund, 82% I have invested in equity fund 18% in debt fund and 6 lakhs in NPS. I am investing in sukanya samriddhi account for my daughter (every month 10k). 10k every month to PPF account. Monthly 50k goes in household items. 10k in gold. 3k in RD and 1.5k to my daughter's RD. Whatever amount remains will invest in mutual fund. My plan is to save 5 CR in next 10 years and also want to buy new house. Please suggest a plan and also share me the next steps
Ans: You are 38, have a good income, no loans, and are planning ahead. That is a solid base. With your clear goal of Rs. 5 crore in 10 years and a house purchase in between, let us build a practical and 360-degree plan for you.

Understanding Your Present Financial Snapshot
Let us first assess your income, expenses, and investments. This gives a foundation for the plan.

Monthly income: Rs. 2.1 lakh

No existing loans

Emergency fund: Rs. 8 lakh in FD

Monthly RD: Rs. 3,000 (Rs. 22,000 total)

EPF corpus: Rs. 16 lakh

PPF corpus: Rs. 6 lakh

Monthly PPF contribution: Rs. 10,000

Mutual funds: Rs. 42 lakh (56k SIP ongoing)

Equity fund exposure: 82%

Debt fund exposure: 18%

NPS corpus: Rs. 6 lakh

Sukanya Samriddhi contribution: Rs. 10,000/month

Household expenses: Rs. 50,000/month

Gold purchase: Rs. 10,000/month

Daughter’s RD: Rs. 1,500/month

No LIC or ULIP mentioned

This gives a clear view of your disciplined habits.

Key Financial Goals Identified
Let us structure your planning around two major goals.

1. Build Rs. 5 crore corpus in 10 years

2. Buy a house within 10 years

Other goals like daughter’s education and retirement also need to be addressed long-term.

Monthly Cash Flow Analysis
Your income: Rs. 2.1 lakh/month

Expenses and fixed savings:

Household: Rs. 50,000

Gold: Rs. 10,000

PPF: Rs. 10,000

Sukanya: Rs. 10,000

RD: Rs. 3,000

Daughter’s RD: Rs. 1,500

Mutual Fund SIP: Rs. 56,000

That totals to Rs. 1.40 lakh

Remaining: Rs. 70,000 (approx.)

You invest most of this in mutual funds. This is a strong approach.

However, some changes can make your portfolio sharper and more targeted.

Assessment of Existing Asset Allocation
Let us review your current investments and their fitment.

1. Mutual Funds – Rs. 42 lakh, 56k SIP

Exposure of 82% in equity is suitable at your age

You can continue equity exposure for 7–8 more years

Debt fund allocation of 18% is good for balance

SIP of Rs. 56,000 plus surplus amount is powerful

Mutual funds are ideal for wealth creation.

But use regular funds through a Certified Financial Planner.

Avoid direct funds. They offer no review, no advice, no behavioural support.

Regular funds give access to expert support.

Avoid index funds.

Index funds just mirror markets.

They lack flexibility, underperform during volatile cycles, and are unmanaged.

Actively managed mutual funds give better risk-adjusted returns.

You need expert MFDs with CFP support to filter the right funds.

2. NPS – Rs. 6 lakh

Continue the investment

Do not depend only on NPS for retirement

It has a lock-in and partial annuity withdrawal

Use NPS as an add-on to your main portfolio.

3. PPF – Rs. 6 lakh, Rs. 10,000/month

This is a good safe long-term product

Tax-free and sovereign-backed

Helps balance your equity exposure

Continue yearly contributions

PPF gives safety to your long-term money.

Do not over-allocate. 1.5 lakh/year is enough.

4. EPF – Rs. 16 lakh

Your EPF corpus is strong

Continue till retirement

Tax-free interest

Treat this as your retirement reserve

5. Sukanya Samriddhi – Rs. 10,000/month

Excellent for your daughter

Safe, tax-free, and long lock-in

Will help for education or marriage

6. Gold – Rs. 10,000/month

This is acceptable if in digital form

Do not exceed 10% of your total investments

Gold does not generate income

Gold is a good hedge. But over-investment will limit growth.

7. Fixed Deposit – Rs. 8 lakh

Serves as emergency corpus

Maintain this level of 4–6 months’ expenses

FD returns are not inflation-beating. Keep only for emergencies.

Strategy to Reach Rs. 5 Crore in 10 Years
To build Rs. 5 crore in 10 years, you need:

Strong equity exposure

Regular SIP growth

No major withdrawals

Yearly step-up in investments

You are already investing Rs. 56,000 monthly in mutual funds.

Plus surplus amount monthly.

Continue SIPs and increase them every year by 10–15%.

Also, whenever you get bonus or increment, increase investments.

Mutual funds are best for 10+ year goals.

Keep investing in actively managed funds with MFD support.

Do yearly review and rebalance if needed.

Do not stop SIPs during market fall. That is when you build wealth.

Planning for House Purchase
You want to buy a house within 10 years.

This is a large one-time expense.

So, split your investments.

Create a separate mutual fund goal for house

Use hybrid or multi-asset funds for 5–8 year horizon

Allocate a portion of your SIPs towards this goal

You can assign 25–30% of your SIPs to house fund.

This avoids disturbing your Rs. 5 crore goal.

Start a new SIP bucket only for the house.

Do not use PPF, EPF, or Sukanya funds for this.

Retirement Planning Foundation
Though your focus is on Rs. 5 crore and home, retirement needs long-term vision.

Let’s ensure you do not miss it.

EPF, PPF, and NPS form retirement base

Mutual funds add growth to retirement wealth

After age 50, shift to more conservative allocation

You can consider creating a retirement income plan at age 50.

Use SWP from mutual funds and phased withdrawals.

Avoid relying fully on EPF/NPS.

Your Daughter’s Financial Planning
You are already doing the right things.

Sukanya Samriddhi is perfect

PPF and daughter’s RD are good additions

You can later shift RD to mutual funds after maturity.

Equity mutual funds give better returns for 10–15 year horizon.

When she turns 10–12, build a dedicated education corpus.

Use hybrid funds or balanced advantage funds for that.

Do not mix her funds with your personal retirement funds.

Suggestions to Improve Portfolio Further
Let us now give some next steps to boost your portfolio.

1. Step-up SIPs Yearly

Increase by 10–15% every year

Even Rs. 5,000 extra makes a big difference

2. Use Regular Plans, Not Direct

Regular mutual funds through MFD with CFP gives better guidance

Direct plans do not offer human touch or review

3. Avoid Index Funds

Index funds don’t offer protection in falling markets

Active funds aim for alpha, handled by expert managers

4. Yearly Review and Rebalancing

Review once every year

Make small corrections in allocation

Rebalance equity vs. debt

5. Avoid Too Much Physical Gold

Prefer digital gold or gold mutual funds

Limit exposure to 10% or less

6. Create Separate Goal Buckets

Don’t mix house, retirement, education goals

Use separate SIPs for each

Track each goal progress individually

7. Keep Emergency Fund Intact

FD of Rs. 8 lakh is good

Do not use this for investment

Final Insights
You are in a strong financial position today.

Your habits are very disciplined.

You are already on the path to your Rs. 5 crore goal.

Just a few focused steps can improve outcomes.

Keep separate SIPs for home and retirement

Increase SIPs every year

Review investments once a year

Stick to actively managed regular funds

Avoid over-dependence on gold or RDs

Stay invested for long-term wealth creation

Also, create a Will and do nominations in all investments.

Ensure health insurance is in place for family.

Work with a Certified Financial Planner to track all goals.

With patience and planning, your goals are achievable.

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

..Read more

Money
Latest Questions
Mayank

Mayank Chandel  |2569 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi
Career
Mayank

Mayank Chandel  |2569 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 18, 2025Hindi
Career
Mayank

Mayank Chandel  |2569 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 14, 2025Hindi
Career
Mayank

Mayank Chandel  |2569 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Career
Mayank

Mayank Chandel  |2569 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Career
Anu

Anu Krishna  |1746 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 08, 2025

Relationship
Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi
Money
Hi i am 40M. would request your help to understand what should be the corpus required for retirement as i want to get retired in next 3-5yrs. currently my take home is 2.3L monthly & my wife also works but leaving the job in next 2-3 months. we have a daughter 10yrs, currently i stay on rent and total monthly expense is 1.1L month. once i will retire we will shift in our own parental flat, where hopefully there will be no rent. current Investments 1. 50L in REC bonds getting matured in 2029 2. 42L in stocks 3. 17L in MF 4. 16L FD 5. 15L in PPF 6. 1.3L SIP monthly i do My Wife Investments 1. 30L corpus 2. flat with current value 40L and we get rental of 10K monthly. Please guide what should be the retirement corpus required combined to retire, assuming i need 75L for my daughter post grad and marriage and we would be requiring 75K monthly for our expenses after retiring
Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

...Read more

Money
Samraat

Samraat Jadhav  |2499 Answers  |Ask -

Stock Market Expert - Answered on Dec 08, 2025

Money
Ramalingam

Ramalingam Kalirajan  |10874 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Money
Hello my name is saket, I monthly salary is 43k and my saving is zero. My Rent is 15 k and 10 k i send to my parents. How can i save money and investments.
Ans: 1. Your Current Monthly Numbers

Salary: Rs 43,000

Rent: Rs 15,000

Support to parents: Rs 10,000

Left with: Rs 18,000 for food, travel, bills, and savings

You have very little room, but saving is still possible if done smartly.

2. First Step: Build a Small Emergency Buffer

You must build Rs 10,000 to Rs 20,000 emergency money.
This protects you from taking loans for small issues.

How to build it:

Save Rs 3,000 to Rs 5,000 every month in a simple bank savings account

Do this for the next few months

Don’t touch it unless truly needed

3. Create a Mini Budget (Very Simple One)

Try this split from the remaining Rs 18,000:

Daily living (food + transport): Rs 10,000 – 11,000

Personal expenses (phone, internet, basics): Rs 3,000 – 4,000

Savings + investments: Rs 3,000 – 5,000

If this feels difficult, reduce food/transport costs by small adjustments.

4. Where to Invest Once You Have Emergency Money

(For minors: This is general education. For actual investing, get guidance from a trusted adult or family member.)

After you build emergency money, start small monthly investing.

You can begin with:

Rs 1,000 to Rs 2,000 SIP in a simple, diversified equity fund

Increase the SIP whenever salary increases or expenses reduce

Avoid complicated products.
Keep it simple.
Focus on consistency.

5. Easy Practical Ways to Increase Saving

These small moves help a lot:

Avoid food delivery

Use public transport as much as possible

Reduce subscriptions you don’t use

Fix a daily expense limit

Keep a separate bank account only for savings

Even Rs 200 saved daily = Rs 6,000 monthly.

6. Increase Income Slowly

Try small income boosters:

Weekend tutoring

Freelancing

Part-time projects

Selling old gadgets

Learning new skills for future salary growth

Even Rs 3,000 extra income changes your savings life.

7. Build the Habit First

The amount doesn’t matter in the beginning.
The habit matters more.

Even saving Rs 500 every month is better than zero.
Once salary grows, you will already know how to save.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Money
Radheshyam

Radheshyam Zanwar  |6737 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 08, 2025

Career
See more questions »
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.
© 2025 Rediff.com - Disclaimer - Privacy - Terms of use - Grievances - Feedback

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x