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Ramalingam Kalirajan |10872 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Sep 08, 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

Question by Abhishek on Aug 26, 2025Hindi

39 year old, 82L in equity and MF. 37L EPF and Gratuity, 15L in FD, 10L In LIC but will mature by 2041 with some 20L., 5L in NPS. Wife too has some 20L in savings. Donot have a house yet and have to plan for that and for daughter studies currently 8 years old as well as her marriage. Planning to work till 46 years. How to plan for house , retirement pension and education as well as marriage. Currently doing sip of 1.6L monthly and investing in fixed instrument like fd, lic and gold for total around 2L/year and epf of 45k and nps of 10k monthly.

Ans: You have built an impressive base at 39. Your savings rate is very high and disciplined. Having Rs 82 lakh in equity and mutual funds plus strong EPF, FD, LIC, NPS, and your wife’s savings shows good financial commitment. Your current SIP of Rs 1.6 lakh monthly is outstanding. With such a strong flow, you can plan multiple goals together. Let us carefully review each aspect.

» Current Financial Position

Equity and MF corpus of Rs 82 lakh is strong at 39 years.

EPF and gratuity of Rs 37 lakh adds stability and safety.

FD of Rs 15 lakh provides liquidity, but returns are low.

LIC maturity value of Rs 20 lakh by 2041 is not efficient.

NPS of Rs 5 lakh adds some pension benefit but is still small.

Wife’s Rs 20 lakh savings also adds strength to household wealth.

SIP of Rs 1.6 lakh monthly is your greatest power.

Fixed instruments add Rs 2 lakh per year, giving safety.

EPF and NPS contributions also provide consistent growth.

» LIC and Traditional Policies

Your LIC policy gives very low returns.

It locks money till 2041 with only Rs 20 lakh maturity.

Inflation will reduce value heavily by then.

You should consider surrendering or making it paid-up.

Redirect money into mutual funds through a Certified Financial Planner.

Keep pure term insurance instead of investment-linked plans.

» Housing Goal Planning

You do not own a house yet.

Buying a house is more of a lifestyle decision than investment.

Your high savings rate allows you to build down payment soon.

But don’t disturb retirement and education funds for house purchase.

Use a mix of FD maturity, part SIP redirection, and wife’s savings.

Keep EMI below 30–35% of salary to maintain balance.

Avoid over-commitment to real estate. House should not kill liquidity.

Ensure enough continues into mutual funds for long-term growth.

» Daughter’s Education Planning

Your daughter is 8 years old.

Higher education costs will arise in 9–10 years.

Target separate corpus for education to avoid disturbing retirement fund.

Continue part of SIPs in long-term equity funds earmarked for education.

Step up SIPs yearly to match rising cost of education.

Avoid funding education goal through FD or LIC as returns are low.

Equity funds with 9–10 years horizon are better for education growth.

» Daughter’s Marriage Planning

Marriage is further away, at least 15–20 years.

This gives longer horizon, so equity allocation works best.

Dedicate small part of monthly SIP for this goal separately.

Gold can be used only in small amount for jewellery needs.

Major portion should still be in mutual funds for growth.

Marriage should not dilute your retirement funds.

» Retirement and Pension Planning

You plan to work only till 46 years.

This gives you 7 years of active income.

Very short working span compared to long retirement life.

Corpus must be built aggressively during these years.

Rs 1.6 lakh monthly SIP and EPF/NPS contributions will help.

But retiring at 46 is early, so expenses must be planned tightly.

NPS will give partial pension but corpus will not be very large.

Most retirement income must come from equity mutual funds.

Create a mix of equity and debt funds for post-retirement withdrawals.

Ensure emergency and medical cover is strong to protect corpus.

» Risk Balance in Portfolio

You already have large equity exposure of Rs 82 lakh.

This is healthy for growth, but risk must be managed.

Direct equity can be volatile.

Mutual funds with professional management reduce concentration risk.

Index funds look simple but lack professional risk management.

Actively managed funds give better downside protection.

They also adjust across sectors and opportunities.

Stick to diversified mutual funds instead of unmanaged direct equity.

» Role of FD and Fixed Instruments

FD of Rs 15 lakh is helpful for emergency buffer.

But too much in FD will reduce overall returns.

Keep only 6–9 months expenses in FD or liquid funds.

Rest can be shifted to debt mutual funds for better tax efficiency.

LIC policies and other fixed return products reduce growth.

Slowly reduce exposure and move towards equity-debt balanced allocation.

» Tax Efficiency

Equity mutual funds have LTCG tax above Rs 1.25 lakh at 12.5%.

STCG is taxed at 20%.

Debt mutual funds are taxed as per slab, but offer flexible withdrawals.

FD interest is fully taxable and reduces real return.

Planning withdrawals smartly will improve post-retirement income.

Review taxation strategy regularly with Certified Financial Planner.

» Insurance and Protection

Ensure strong term insurance coverage to protect family in case of risk.

Medical insurance must also be large enough for family needs.

Protection ensures that your wealth-building goals are not disturbed.

» Expense and Lifestyle Control

With Rs 1.6 lakh SIP, your discipline is very high.

Continue this lifestyle discipline without increasing unnecessary expenses.

Avoid upgrading lifestyle when income rises.

Each rise in income should increase SIP instead of EMI.

» Family Involvement

Since wife also has Rs 20 lakh savings, plan jointly.

Consolidate investments under one plan.

This reduces duplication and ensures both understand goals clearly.

Education, marriage, and retirement should be planned as family goals.

» Role of Professional Guidance

Direct investing in funds without expert review can create imbalances.

Regular funds through MFD with CFP guidance offer monitoring and rebalancing.

Direct funds may appear cheaper, but lack expert support.

Wrong fund selection or late reviews can damage wealth growth.

For large SIPs and multiple goals, professional review is essential.

» Estate Planning

Create nomination in all investments, EPF, and NPS.

Write a will for smooth asset transfer to wife and daughter.

Keep family informed about all accounts.

This ensures continuity and protection of wealth in your absence.

» Finally

You have very high income and savings power.

Current Rs 82 lakh in equity and Rs 1.6 lakh monthly SIP gives strength.

Retiring at 46 is tough, but partial financial freedom can be achieved.

Focus on building corpus for education and retirement first.

House purchase must not disturb these long-term goals.

Surrender LIC and reduce FD dependence to boost returns.

Stay disciplined with SIP, increase when income rises, and avoid lifestyle inflation.

With professional guidance and consistent effort, you can achieve education, marriage, retirement, and housing goals together.

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

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

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