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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 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 23, 2025Hindi

I am 39 years old have a 1.5 year old daughter ..I have around planning for her higher education and want every month need a fixed income for her around 25000 after 12 years so that she can get her own expenses 20 lakhs in pf for me and my wife retirement Paying Lic premium of 32000 yearly for me and my wife retirement Have around 8 lakhs of FD that is invested for coming 5 years Having 72000 of mutual fund for me and my wife retirement Have invested around 11 lakhs in mutuals for my daughter and currently investing 12000 as sip every month Have an nps vastalya for my daughter have aroubd 52000 invested and do lump sump investment whenever I have spare money to invest Have gold around 100 grams for my daughter So much will my 11 lakhs of mutual fund generate in next 20 years for my daughters higher education Also if I need 25000 every month for my daughter after 12 years how much to invest lump sump or where do I invest I have a scope to invest 2/3 lakhs lump sump one shot or partly Also for her marriage will need around 20 lakhs how to achieve this target

Ans: Current Mutual Fund Investment for Daughter's Higher Education
You have invested Rs. 11 lakhs in mutual funds for your daughter.
Also, you are investing Rs. 12,000 every month through SIP.
This is a very good foundation for long-term growth.

Over 20 years, mutual funds can deliver compounding returns.
If the fund performs steadily, the value may grow well.
Mutual funds offer better inflation-beating potential than FDs or gold.

But returns depend on fund type, consistency, and market cycles.
Assuming decent long-term growth, your Rs. 11 lakh can grow significantly.
Your monthly SIP of Rs. 12,000 adds more power to the compounding.

This combined investment has potential to reach a healthy corpus.
It could very well support her higher education needs in future.

But we must track and reallocate it every 4-5 years.
This ensures the investment stays aligned with your goal timeline.

Goal: Monthly Income of Rs. 25,000 After 12 Years
You want your daughter to get Rs. 25,000 every month after 12 years.
This is a goal similar to creating a future income stream.

This means you are planning to build a corpus by then.
That corpus can then give a steady income through withdrawals.

To receive Rs. 25,000 monthly, the corpus needs to be large.
If you aim to give her that for 10 years, plan accordingly.
This future value will be impacted by inflation.

You have two options now — monthly SIP or lump sum.
You mentioned you can invest Rs. 2 to 3 lakhs as lump sum.
It is better to invest in a diversified equity mutual fund now.

Lump sum gives growth if markets stay stable in long-term.
But split it into 3–4 instalments across next 6 months.
This smooths out market volatility risk.

Also, increase SIP by 5–10% every year as income grows.
This will help build more value over the next 12 years.

Later, when your daughter is 12–13 years old, reduce equity.
Shift slowly to hybrid and debt funds as the time nears.
That way, returns are protected from short-term risk.

Goal: Rs. 20 Lakhs for Daughter’s Marriage
You want Rs. 20 lakhs for her marriage.
Let’s assume this goal is around 20–22 years from now.
This gives you time to grow funds with equity exposure.

You already have 100 grams of gold set aside.
This is a helpful backup for wedding jewellery or support.

For the main corpus of Rs. 20 lakhs, equity mutual funds work best.
You may create a separate folio just for this goal.
Invest part of your future bonuses or incentives here.

Do small annual lump sum contributions along with monthly SIP.
Avoid relying fully on gold or fixed deposits for this.
Gold may not beat inflation consistently over 20 years.

Do not invest in gold ETF or digital gold also.
Physical gold held already is more than sufficient.

Retirement Assets and Planning Overview
You have Rs. 20 lakhs in PF between you and your wife.
Also, LIC policies with Rs. 32,000 annual premium.

LIC plans often give lower returns with long lock-ins.
They combine insurance and investment – which is inefficient.
You may check surrender value of these plans now.

If surrender is allowed with reasonable exit charges, consider it.
Reinvest the proceeds into diversified mutual funds for retirement.

You also have Rs. 72,000 in mutual funds for retirement.
This is a small amount so far.
Please consider starting a monthly SIP of Rs. 8,000 to 10,000 for retirement.

This can go in an aggressive hybrid or large-cap fund.
Continue for next 15 years and reduce risk later gradually.

Your FDs of Rs. 8 lakhs are good for safety.
But they don’t give high growth after tax.
Renew only a portion of them as fixed deposits after 5 years.
Shift part to mutual fund STP after 5 years if you need liquidity.

NPS for Daughter – Vatsalya Account
NPS Vatsalya is a long-term, disciplined option.
Rs. 52,000 invested so far is a good beginning.
You can do lump sum additions every year to this.

NPS has lock-in till child turns 18.
So, you are secure from unnecessary withdrawals.

But do not depend only on this for education.
It will help as a support, but returns are limited by structure.

You can use it later for her PG or marriage fund top-up.

Suggestions on Structuring New Investments
– Allocate Rs. 2–3 lakhs lump sum over next 3–6 months.
– Invest in diversified multi-cap or large & mid-cap funds.
– Prefer regular plans through a CFP-certified MFD.
– Avoid direct mutual funds. They offer no expert support or handholding.
– Direct funds also lack performance tracking and rebalancing.
– Regular funds offer better behavioural support and fund selection.

– Continue Rs. 12,000 SIP for daughter’s education.
– Create another SIP of Rs. 5,000 to 7,000 for marriage goal.
– Gradually increase SIPs by 10% every year if possible.
– Monitor fund performance every year with your MFD.
– Switch from equity to balanced or hybrid funds when goal is 3 years away.

Actionable Next Steps
– Review LIC policies. If they are endowment/ULIP, assess surrender value.
– Use a part of your FDs to start a child marriage SIP.
– Create a separate goal-wise investment plan using different folios.
– Make sure to review portfolio every year with a Certified Financial Planner.
– Tag your mutual fund folios clearly (education, marriage, retirement).
– Keep at least 6 months of household expenses in FD or liquid fund as emergency.

– Start a SIP of Rs. 8,000 per month for your and wife’s retirement.
– Invest in actively managed equity funds, not index funds.
– Index funds lack flexibility and may underperform in Indian market conditions.
– Active funds offer better downside protection and human-managed strategies.

Finally
Your long-term thinking for your daughter is inspiring.
You are already taking excellent steps with mutual funds and NPS.
This shows a deep commitment to her future and your own retirement.

But goals like monthly income for daughter and marriage need structured planning.
Mutual funds offer best combination of growth, flexibility, and liquidity.
You also need to shift from insurance-based investments to pure financial ones.

With regular review and small SIP increases, you can reach all three major goals.
Your daughter’s education, marriage, and your own retirement can all be covered.
Do not hesitate to make goal-specific portfolios for clarity.

Every rupee invested with purpose will give peace of mind tomorrow.

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

Asked on - Jul 11, 2025 | Answered on Jul 11, 2025

Due to some technical error some parts of my investment were missed out 1) my wife has 20 lakhs in PPF (for my and her retirement) 2) NPS 252000 started from past 3 years will continue 50k every year 3) EPF ON MY WIFES NAME -5.5 lakhs (for retirement 4) investment of 12 lakh one time investment in LIC which will be maturing at age of 58 she’s 38 right now for retirement 5) 5 lakhs shares 6) 6 lakhs mutual funds 8000 every month So adding all these is me and my wife’s retirement covered and my daughters future aspects of marriage and her own expenses planning to be covered

Ans: Thank you for sharing the additional details. Your combined retirement and child future planning is on strong ground.

– Your wife’s Rs. 20 lakh PPF + Rs. 5.5 lakh EPF gives stable base.
– NPS of Rs. 2.52 lakh with Rs. 50,000 yearly is good for long-term income.
– LIC Rs. 12 lakh maturing at 58 gives lump sum boost.
– Rs. 6 lakh mutual fund + Rs. 8,000 SIP monthly adds growth.
– Rs. 5 lakh in shares may be volatile. Monitor or switch gradually to mutual funds.

So, retirement corpus is shaping well, but more SIPs in equity/hybrid funds can boost it.

Your daughter’s marriage and income needs are also on track with existing mutual fund SIPs and gold.

But fund allocation, inflation adjustment, and review every 2–3 years are crucial.

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

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