Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan  |3951 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 02, 2024

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 - Mar 06, 2024Hindi

I am a 38 year old working woman with a toddler and aged mom to look after. Current income is around 15lac per annum and m living in metro city. Currently I have around 10lac as savings. I want to invest the same for the future of my kid and myself.I have started SSY child, PPF and NPS too. plz suggest good way of investing the above said amount.

Ans: Given your current situation and financial goals, here's a suggested approach to investing your savings:

Emergency Fund: Ensure you have a sufficient emergency fund equivalent to at least 6-12 months of your expenses. This fund should be easily accessible in case of unexpected expenses or emergencies.

Child's Future: Continue contributing to the Sukanya Samriddhi Yojana (SSY) for your child's future education and other needs. Additionally, consider investing in other child-specific investment options like education savings plans or mutual funds.

Retirement Planning: Continue contributing to the Public Provident Fund (PPF) and National Pension System (NPS) for your retirement. Both provide tax benefits and long-term savings opportunities. Ensure you are allocating appropriate amounts to these accounts based on your retirement goals and risk tolerance.

Wealth Creation: With the remaining savings, consider investing in a diversified portfolio of mutual funds. Allocate funds across various categories like large-cap, mid-cap, small-cap, and balanced funds based on your risk tolerance and investment horizon. Regularly review and adjust your portfolio as needed to stay aligned with your financial goals.

Insurance: Ensure you have adequate life and health insurance coverage for yourself and your family members to provide financial security in case of unforeseen circumstances.

Estate Planning: Consider consulting with a financial advisor or estate planner to create a comprehensive estate plan that addresses your specific needs and ensures the smooth transfer of assets to your beneficiaries.

Remember to regularly review your financial plan and make adjustments as needed based on changes in your life circumstances, financial goals, and market conditions. It's also advisable to seek professional financial advice to optimize your investment strategy and achieve your long-term financial objectives.
Asked on - Apr 06, 2024 | Answered on Apr 08, 2024
Thank you sir.
Ans: Welcome :)
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.

You may like to see similar questions and answers below


Ramalingam Kalirajan  |3951 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 27, 2024

Hallo Sir, I'm Railway employee, aged 33 yrs, married and glad to have 8 months baby boy. My gross income Rs. 8,00,000/- Per annum... I have House building lone of Rs. 31,000/- pm. After all expenditure of per month. Deduction of NPS fund are there per month as the guide line of govt. Except the NPS deduction I have PPF account where I'm Investing of Rs. 1,500/-pm. Now I am determined to invest of Rs. 17,000/- pm per month to secure the future of my son and I have a long term goal minimum of 10 years. May please advise me where I shoud invest the Rs. 17,000/- pm. Let me also know how to invest the aforesaid amount in different ways to earn maximum profit. Thanking you in anticipation.
Ans: Congratulations on the newest addition to your family! It's heartwarming to see your dedication to securing your son's future. With a clear goal of investing Rs. 17,000 per month for the next 10 years, you're taking a significant step towards long-term financial stability.

Considering your circumstances, it's wise to explore a diversified investment approach tailored to your risk tolerance and financial goals. This might include a mix of equity mutual funds, debt instruments, and possibly even some exposure to balanced or hybrid funds.

By diversifying your investments, you spread risk and maximize potential returns over the long term. Remember, investing is a journey, and it's crucial to stay focused on your goals while navigating market fluctuations.

Consulting with a Certified Financial Planner can provide personalized guidance aligned with your aspirations. Together, you can craft a robust investment strategy that caters to your son's future needs and ensures financial security for your growing family.

Your commitment to securing your son's future is truly commendable, and with strategic planning and prudent investment choices, you're laying a solid foundation for his bright tomorrow.

..Read more


Ramalingam Kalirajan  |3951 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 13, 2024

Asked by Anonymous - Apr 13, 2024Hindi
Hi, I am 34 years old and I work as a IT consultant and my wife is a homemaker and we have a 6 months old son. My salary is 26 Lakhs and currently I have about 15 Lakhs of savings and 15 Lakhs of funds parked in Shares. I dont have a house and a car. Please suggest on how to invest for home and car in about next 5-7 years and investment for child future education and marriage.
Ans: Congratulations on your new son! It sounds like you're in a good financial position to plan for your future goals. Here are some thoughts on how to invest for your home, car, and child's future:

Emergency Fund:

Before diving into investments for bigger goals, ensure you have a solid emergency fund. Aim for 3-6 months of your living expenses to cover unexpected costs. You can park this in a high-interest savings account or liquid funds for easy access.
Home and Car:

Timeline: With a 5-7 year timeframe, you can consider a mix of investments for your down payment on a house and car.
Down Payment: Typically, a 20% down payment is recommended for a house loan to avoid private mortgage insurance (PMI).
Investment Options:
Debt Funds: Invest a portion in low-risk debt funds that offer moderate returns with lower volatility than stocks.
Balanced Mutual Funds: Consider balanced mutual funds that invest in a mix of stocks and bonds, offering a balance between growth and stability.
Systematic Investment Plan (SIP) in Equity Mutual Funds: A small monthly SIP in diversified equity mutual funds can potentially offer higher returns over the long term, but be aware of market fluctuations.
Child's Education and Marriage:

Investment Horizon: You have a long investment horizon for your child's future. This allows you to consider growth-oriented investments.
Investment Options:
Equity Mutual Funds: A regular SIP in equity mutual funds allows you to benefit from compounding returns over the long term.
Child Plans: Explore child-specific investment plans offered by insurance companies. These plans provide insurance coverage along with a maturity benefit for your child's education or marriage. These may not offer the highest returns but can provide tax benefits and life insurance coverage.
Government Schemes: Sukanya Samriddhi Account (SSA) for a girl child offers good interest rates and tax benefits.
Here are some additional tips:

Do your research: Before investing in any financial product, research different options and understand the risks involved.
Seek professional financial advice: Consider consulting a registered financial advisor who can create a personalized plan based on your specific needs and risk tolerance.
Review Regularly: Review your investments periodically and adjust your asset allocation as your goals and risk tolerance change.
Remember: This is a general guideline, and the best investment strategy will depend on your specific circumstances. Be sure to factor in your risk tolerance, financial goals, and investment time horizon when making any investment decisions.

..Read more


Ramalingam Kalirajan  |3951 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 19, 2024

Hi Sir. I am a female 30 yrs having a kid of 3 yrs. My monthly take home is 90k. My expenses include 20k monthly. Remaining 70k needs to be invested for my son's future ( education, marriage, higher studies,vehicle,etc) and my retirement. Please help me with investment plans as well as tax saving plans. I am just aware of govt scheme of investing 2lakhs for girls and take along with interest of 2.3 lakhs approx. Apart from this I don't have much knowledge and guidance on investment. Pls help me sir
Ans: Understanding Your Financial Situation
You are 30 years old with a 3-year-old son. Your monthly take-home pay is Rs 90,000, and your expenses are Rs 20,000. This leaves you with Rs 70,000 to invest each month. Your goals include saving for your son's education, marriage, higher studies, vehicle, and your own retirement.

Evaluating Your Financial Goals
1. Son’s Education and Marriage:

You need to save for your son’s primary and higher education, as well as his marriage. Education costs are rising, so starting early is wise.

2. Your Retirement:

Planning for retirement early ensures a comfortable and financially secure future.

Strategic Asset Allocation
Diversification is key to balancing growth and stability in your portfolio. Allocate funds across equity, debt, and other investment options.

Equity Investments
Equity investments are essential for long-term wealth creation. They offer high returns, which can help you beat inflation and grow your corpus significantly.

Benefits of Actively Managed Funds
Actively managed funds are managed by professionals who aim to outperform the market. These experts adjust the portfolio based on market conditions, seizing opportunities and mitigating risks.

Disadvantages of Index Funds
Index funds track the market index and cannot outperform it. They lack the flexibility to adapt to market changes. Actively managed funds, on the other hand, can provide better returns due to their dynamic nature.

Debt Investments
Debt investments provide stability to your portfolio. They offer fixed returns and are less risky compared to equities. Consider high-quality debt instruments like corporate bonds, government securities, and debt mutual funds.

Tax Saving Investments
Public Provident Fund (PPF)
PPF is a long-term investment option with tax benefits under Section 80C. It offers safety, attractive interest rates, and tax-free returns.

National Pension System (NPS)
NPS is a government-backed pension scheme that provides tax benefits under Section 80C and 80CCD. It offers a mix of equity, corporate bonds, and government securities.

Equity-Linked Savings Scheme (ELSS)
ELSS mutual funds offer tax benefits under Section 80C and have the potential for high returns. They come with a lock-in period of three years, making them a good option for long-term goals.

Sukanya Samriddhi Yojana (SSY)
Though you mentioned a government scheme for girls, Sukanya Samriddhi Yojana (SSY) is specifically designed for the girl child. However, it is not applicable to your son.

Systematic Investment Plan (SIP)
SIP is a method of investing in mutual funds where you invest a fixed amount regularly. It helps in disciplined investing and benefits from rupee cost averaging.

Creating a Corpus for Education and Marriage
Child Education Plan
1. Identify the Goal:

Estimate the cost of your son’s education, including school, college, and possibly overseas education.

2. Investment Horizon:

Since your son is 3 years old, you have a long-term horizon of around 15-20 years.

3. Asset Allocation:

Start with a higher allocation to equities for growth. Gradually shift to debt as the goal approaches to preserve capital.

4. Regular Investment:

Invest a part of your monthly surplus (Rs 70,000) in a mix of equity and debt funds through SIPs. This ensures disciplined investing and harnesses the power of compounding.

Child Marriage Plan
1. Identify the Goal:

Estimate the cost of your son’s marriage, considering inflation.

2. Investment Horizon:

Assuming your son marries at 25, you have a 22-year horizon.

3. Asset Allocation:

Similar to the education plan, start with a higher equity allocation and shift to debt as the goal approaches.

4. Regular Investment:

Allocate a portion of your monthly surplus to SIPs in equity and balanced funds.

Retirement Planning
Setting Up a Retirement Corpus
1. Estimate Your Retirement Needs:

Calculate the amount you need for a comfortable retirement. Consider your current lifestyle, inflation, and expected longevity.

2. Investment Horizon:

You have around 30 years until retirement. This long horizon allows you to take advantage of compounding.

3. Asset Allocation:

Start with a higher allocation to equities for growth. Gradually increase the allocation to debt as you approach retirement to reduce risk.

4. Regular Investment:

Invest a significant portion of your monthly surplus in a mix of equity, balanced, and debt funds. This ensures a diversified portfolio that balances growth and stability.

Tax Planning Strategies
Section 80C Investments
Utilize the Rs 1.5 lakh limit under Section 80C by investing in options like PPF, ELSS, NPS, and fixed deposits.

Health Insurance
Health insurance premiums are deductible under Section 80D. Ensure you have adequate health insurance coverage for yourself and your son.

National Pension System (NPS)
Contributions to NPS are eligible for an additional deduction of Rs 50,000 under Section 80CCD(1B). This is over and above the Rs 1.5 lakh limit of Section 80C.

Investing in Health
Investing in your health is as important as financial investments. A healthy lifestyle reduces future medical expenses. Regular exercise, a balanced diet, and periodic health check-ups are essential.

Emergency Fund
Maintaining an emergency fund is crucial. It should cover at least six months of your living expenses. This fund provides financial security during unforeseen events and prevents you from dipping into your investments.

Systematic Withdrawal Plan (SWP)
How SWP Works
In an SWP, you invest a lump sum in a mutual fund. You can then choose to withdraw a fixed amount at regular intervals—monthly, quarterly, or annually. This withdrawal is sourced from both the capital gains and the principal amount, ensuring that you have a steady income stream.

Advantages of SWP
Regular Income: SWP provides a predictable and regular income flow, which is essential for meeting monthly expenses post-retirement.

Tax Efficiency: Compared to fixed deposits, the capital gains in SWP are taxed at a lower rate. The taxation depends on the type of mutual fund and the holding period, making it a tax-efficient option for regular income.

Capital Growth: While you withdraw a fixed amount, the remaining investment continues to grow. This helps in countering inflation and preserving the capital.

Flexibility: You can choose the amount and frequency of withdrawals based on your financial needs. Additionally, you can stop or modify the SWP anytime without penalties.

Implementing SWP
To implement an SWP, follow these steps:

Choose the Right Mutual Fund: Select a mutual fund that aligns with your risk tolerance and income needs. Balanced funds or debt funds are typically preferred for SWP due to their stability and moderate returns.

Invest a Lump Sum Amount: Based on your income requirement, determine the lump sum amount needed. This should be invested in the chosen mutual fund.

Set Up SWP: Instruct the mutual fund company to set up the SWP with your desired withdrawal amount and frequency.

Monitor and Adjust: Regularly review your SWP and adjust if necessary. This ensures your withdrawals align with your financial goals and market conditions.

Reviewing Your Investments Regularly
Regular review of your investments is essential. Market conditions change, and your investment strategy should adapt accordingly. Periodic reviews with a Certified Financial Planner can help keep your investments on track and aligned with your goals.

Avoiding Direct Funds
Direct funds might seem cost-effective due to lower expense ratios, but they require deep market knowledge and constant monitoring. Investing through a Certified Financial Planner ensures professional management and better performance. Regular funds provide the benefit of expert advice and active management.

Final Insights
Securing a financially stable future for yourself and your son requires careful planning and disciplined execution. Diversify your investments across equity, debt, and tax-saving options to balance growth and stability. Maintain an emergency fund, ensure adequate insurance coverage, and regularly review your investments with a Certified Financial Planner. By following these steps, you can achieve financial independence and secure your son’s future and your retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |3951 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2024

Asked by Anonymous - Jun 23, 2024Hindi
I am 34 year old my salary is 30000, wife is house wife, have 2 daughters 8year and 2 year old one son 6 year old, i can invest 8000 per month now, how i should invest so i can manage my kids studies and other expenses with making some retirement fund also. In future as my salary will increase i can increase investment.
Ans: Managing your finances with a focus on your kids' education and your retirement is commendable. Let’s dive into a detailed plan tailored for you.

Understanding Your Financial Goals
Your primary goals seem to be:

Ensuring a secure and quality education for your three kids.
Building a retirement corpus for a comfortable future.
Managing current expenses effectively while saving for future needs.
Each goal needs a specific strategy to ensure balanced growth and security.

Evaluating Your Current Financial Situation
With a salary of Rs 30,000 and a housewife spouse, it's essential to optimize your Rs 8,000 monthly savings. Your family responsibilities require prudent planning and disciplined saving habits.

Importance of a Diversified Portfolio
Investing across various assets is crucial. A diversified portfolio minimizes risk and maximizes returns. Let’s break down how you can allocate your Rs 8,000 monthly investment.

Prioritizing Emergency Fund
Before diving into investments, an emergency fund is vital. Aim to save 3-6 months' worth of expenses. This cushion will protect you from unexpected financial disruptions.

Building a Children's Education Fund
Education costs rise every year. Start a dedicated fund for each child’s education. Equity mutual funds are a strong option here due to their potential for high returns over a long period. While equity funds are volatile in the short term, they tend to outperform other asset classes in the long term.

Benefits of Actively Managed Equity Funds:

Professional management ensures informed investment decisions.
Potential for higher returns compared to passive index funds.
Active managers can navigate market volatility better.
Disadvantages of Index Funds:

Lack of flexibility in stock selection.
Possible underperformance in volatile markets.
Limited ability to react to market changes.
Planning for Retirement
Retirement planning should not be delayed. A systematic investment in mutual funds can create a substantial corpus. Since you have a long investment horizon, equity funds are suitable for this goal too.

Choosing Regular Funds Over Direct Funds
While direct funds have lower expense ratios, regular funds offer advantages through the guidance of a Certified Financial Planner (CFP). Regular funds come with:

Professional advice tailored to your financial goals.
Assistance in portfolio rebalancing.
Guidance during market volatility.
Insurance: Protection First
If you hold LIC, ULIP, or other investment-cum-insurance policies, it might be beneficial to surrender these and reinvest the proceeds into mutual funds. Pure term insurance is a better option for financial protection without the high costs of investment-linked insurance plans.

Systematic Investment Plan (SIP) Strategy
A SIP is an excellent way to invest consistently. Here’s a proposed allocation for your Rs 8,000 monthly investment:

Children’s Education Fund: Rs 4,000
Retirement Fund: Rs 3,000
Emergency Fund: Rs 1,000
As your salary increases, you can proportionally increase these investments.

Regular Review and Rebalancing
Financial planning is not a one-time activity. Regularly review your portfolio and rebalance it to align with your goals. A CFP can assist in these reviews and make necessary adjustments.

Tax Planning and Benefits
Investments in certain mutual funds offer tax benefits under Section 80C. Equity Linked Savings Schemes (ELSS) are mutual funds that provide tax deductions and have the potential for higher returns.

Importance of Discipline and Patience
Investing is a long-term commitment. Stay disciplined with your SIPs and avoid withdrawing funds unless absolutely necessary. Patience is key to achieving your financial goals.

Final Insights
To summarize:

Start with an emergency fund for financial security.
Allocate funds to children’s education and your retirement.
Opt for actively managed mutual funds over index funds.
Consider regular funds with professional guidance over direct funds.
Review and adjust your portfolio regularly with a CFP’s help.
Take advantage of tax-saving investment options.
With disciplined saving and informed investment decisions, you can secure your children’s future and build a comfortable retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

Latest Questions

Moneywize   |122 Answers  |Ask -

Financial Planner - Answered on Jun 25, 2024

Asked by Anonymous - Jun 13, 2024Hindi
Ours is a family of 3 people -- My wife, I and my daughter who is 15. I am 39, my wife is 37 and our monthly expenses are Rs 90K. I own my house and expect to have no fixed income after 65 years, and expect to live till 75. Considering the ever increasing price rise what should be my corpus at 65 for me to continue living the life style I am living today?
Ans: Calculating your retirement corpus:

Here's how to estimate the corpus you'll need to maintain your current lifestyle after retirement:

1. Retirement period:

You plan to retire at 65 and expect to live till 75. So, your retirement period is 75 - 65 = 10 years.

2. Inflation adjustment:

You've rightly considered inflation. To estimate future expenses, we need to factor in inflation. A safe assumption for India is 5-7% inflation. Let's take an average of 6%.

3. Current monthly expenses:

You spend Rs 90,000 per month currently.

4. Future monthly expenses:

To find the monthly expense at retirement (at 65), we need to consider inflation for 26 years (39 years till retirement + 10 years retirement).

You can use an inflation calculator online or a simple formula:

Future monthly expense = Current monthly expense * (1 + Inflation rate)^number of years

In your case, Future monthly expense = Rs 90,000 * (1 + 0.06)^26 ≈ Rs 3,28,550 (approximately Rs 3.29 lakh)

5. Total corpus calculation:

Now you can calculate the total corpus needed. Here's a common approach:

Total corpus = Monthly expense * Number of years in retirement * 12 (months)

However, this method doesn't consider the fact that you'll be withdrawing money every month, reducing the corpus. A more accurate method is using the Time Value of Money (TVM) concept. There are online TVM calculators or Excel functions you can use.

Here's an alternative approach that provides a reasonable estimate:

Multiply the future monthly expense (Rs 3.29 lakh) by a factor considering inflation over the period. This factor can vary depending on your risk tolerance and investment strategy. A factor of 200 is often used as a conservative estimate.
Total corpus = Rs 3.29 lakh/month * 200 (factor) = Rs 6.58 crore (approximately Rs 658 million)

Additional factors to consider:

• Daughter's future expenses: Your daughter will be an adult by the time you retire. While she won't be financially dependent, consider any potential future support you might want to provide for her education or marriage.
• Healthcare costs: Healthcare expenses tend to increase with age. Factor in potential medical needs during retirement.
• Debt: If you have any outstanding debt by the time you retire, you'll need to account for its repayment in your corpus calculation.
• Investment returns: The corpus amount assumes a certain rate of return on your investments. Research different investment options and their potential returns to refine your calculations.


Consult a financial advisor for a personalised retirement plan considering your specific financial situation, risk tolerance, and investment goals. They can help you create a more comprehensive plan and suggest suitable investment strategies to achieve your corpus target.

Remember, this is an estimate. Regularly review your plan and adjust it based on changing circumstances.

...Read more


Mayank Chandel  |1003 Answers  |Ask -

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Jun 24, 2024

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.


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

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