Hi, i am 42 years old 2 children 7 and 11 yrs each. earning currently 2 lakh net. I planning to create a retirement plan. I have done some investments but have never planned with specific goals so far. I intend to grow my money as much possible. And i am willing to take few risks, like i have started doing derivatives in options ( only nifty and I am not doing intra day). Please advice if my investment are reasonable and what are the other options i have to invest. Here are my assets and liability Land at current value : 70 lakhs Gold at current value : 21 lakhs Fixed Deposit : 10 lakhs PF balance : 11 lakhs Sukanya samridhi (annual1.5lakh) : 20 lakh Ppf for son ( annual 1.5 lakh): 14 lakh Direct equity ( 6 lakh invested) : current value : 17 lakhs Mutual Funds Franklin templeton tax saver growth( sip 4000) : 12 lakh Pp flexi cap growth(Sip 2000): 77 thousand Newly started Sip Quant small cap (sip 1000) Edelweiss momemtum (SIP) Liability ( car loan) : 20 lakhs

Ans: It's wonderful that you have a solid financial foundation and a clear vision for your future. Let's review your current investments and suggest strategies to help you achieve your goals for your children's education and your retirement.

Current Financial Situation
Monthly Income and Expenses
In-hand Income: Rs. 2.2+ lakhs per month
Monthly Expenses: Rs. 50,000
Current Investments
Mutual Fund SIP: Rs. 60,000 per month (started this year)
NPS: 10% of basic salary + Rs. 50,000 annually (contributed for the past 5 years)
PPF: Rs. 12,500 per month (contributed for the past 5 years)
Emergency Fund: Rs. 3 lakhs (in Fixed Deposit)
EPF: Rs. 20+ lakhs
Term Plan: Rs. 50 lakhs + Rs. 1.5 crore (corporate cover) + additional Rs. 1.5 crore
Medical Insurance: Corporate plan of Rs. 15 lakhs + minimum external plan
Assets
Two Properties: Debt-free
Financial Goals
Children's Education: Rs. 2 crores (Rs. 1 crore for each child)
Retirement: Rs. 5 crores liquid cash by age 60
Investment Strategy
1. Enhance Equity Exposure
Given your high-risk capacity and long investment horizon, increasing your equity exposure is prudent. Equity investments can offer higher returns compared to other asset classes.

Increase SIP Amount: You can invest an additional Rs. 80,000-90,000 per month. This can be allocated to diversified equity mutual funds, mid-cap funds, and small-cap funds for higher growth potential.
2. Optimize Existing Investments
Mutual Fund SIPs: Continue your existing SIPs. Consider adding funds with a good track record and those that align with your risk appetite.
NPS: This is a good investment for retirement savings due to its tax benefits and long-term growth potential. Ensure your allocation is optimized between equity and debt within NPS.
PPF: Continue your contributions to PPF for tax-free returns and safety. However, PPF has a lower return compared to equities, so balance your investments accordingly.
3. Diversify Investments
Diversification helps manage risk and capture opportunities across different market segments.

Equity Funds: Increase investments in equity mutual funds. Consider large-cap, mid-cap, and small-cap funds for a balanced growth portfolio.
Debt Funds: To balance the portfolio, consider debt mutual funds for stability and predictable returns.
Gold: Small allocation to Sovereign Gold Bonds (SGBs) can act as a hedge against inflation and market volatility.
Education Planning for Children
1. Systematic Investment Plan (SIP) for Education
Start dedicated SIPs in equity mutual funds targeted for your children's education. This will help in accumulating the required corpus systematically over time.

2. Child Plans
Consider investing in child-specific mutual funds or ULIPs that offer long-term growth and benefits tied to education milestones.

Retirement Planning
1. Retirement Corpus Calculation
With a target of Rs. 5 crores by age 60, let's ensure your investments align to meet this goal. A mix of equity and debt will provide growth and stability.

2. Retirement-Specific Funds
Consider investing in retirement-focused mutual funds and increasing your NPS contributions. These funds are designed to grow your savings efficiently over the long term.

3. Review and Rebalance Portfolio
Regularly review and rebalance your portfolio to align with changing market conditions and life stages. This will help in maintaining the desired asset allocation.

Risk Management
1. Adequate Insurance Cover
You already have substantial term insurance and health insurance coverage. Ensure they are sufficient to cover any unforeseen circumstances.

2. Emergency Fund
Maintain or slightly increase your emergency fund to cover 6-12 months of expenses. This provides a safety net for unexpected events.

Consultation with a Certified Financial Planner (CFP)
1. Personalized Financial Advice
A Certified Financial Planner can offer personalized advice, taking into account your specific financial situation, goals, and risk tolerance.

2. Expert Management
CFPs help in managing your investments effectively, optimizing returns while minimizing risks.

3. Comprehensive Planning
CFPs can assist with comprehensive financial planning, including tax planning, estate planning, and more, ensuring all aspects of your financial health are covered.

Example Investment Plan
Here’s a simplified example of how you might allocate your additional Rs. 80,000-90,000 monthly investment:

Equity Mutual Funds: Rs. 50,000 in diversified large-cap, mid-cap, and small-cap funds.
Debt Mutual Funds: Rs. 20,000 for stability and income generation.
Gold/SGB: Rs. 10,000 for diversification and inflation hedge.
Regular Monitoring and Adjustments
1. Annual Review
Conduct an annual review of your investments and financial goals. Adjust your SIP amounts and asset allocation as needed.

2. Stay Informed
Keep yourself informed about market trends and economic changes. Staying updated will help in making informed investment decisions.

Conclusion
Your current investments and financial strategies are commendable and align well with your goals. By increasing your equity exposure, optimizing existing investments, and consulting a Certified Financial Planner, you can confidently work towards securing your children’s education and a comfortable retirement.

Your disciplined approach and willingness to invest more monthly will significantly enhance your financial security. Continue to monitor and adjust your investments regularly to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ans: You are very organised with your finances.
As a Certified Financial Planner, let me give you a full 360-degree review.

Family and Income Snapshot
You are 40 years old and working in software.

You have two children aged 8 and 3.

Monthly take-home salary is Rs 1.75 lakh.

Your spouse is also earning and focusing on physical assets.

You wish to build a focused education fund for children.

You are already investing with discipline and purpose.
Let’s now study everything in detail and correct where needed.

Existing Loan Commitments
You are currently paying for four types of loans:

Home Loan EMI: Rs 52,000

Personal Loan: Rs 22,000

Car Loan: Rs 21,444

Top-up Loan: Rs 8,500

That is Rs 1,03,944 towards loan EMIs.
This eats up nearly 60% of your salary.
This is high. It increases financial pressure.

Suggestions:

Try to repay the personal loan early.

Check if car loan can be closed faster.

Avoid fresh loans till current loans are cleared.

Do not use top-up loans for non-emergency needs.

Reducing EMI will free money for better investment.

Insurance Portfolio Review
You have:

LIC premiums: Rs 1 lakh per year

Term life insurance: Rs 52,000 per year

LIC premiums are usually part of endowment or money-back.
These are low-return products combining investment and insurance.
They are not good for wealth creation.

Suggestions:

If your LIC is investment-based, surrender it.

Use surrender value to invest in mutual funds.

Term insurance should be plain and high cover.

Coverage should be minimum 15–20 times annual income.

Don’t mix insurance with investment again in future.

NPS Contribution
You contribute Rs 5,700 monthly to NPS.

It is 4% of basic salary.

NPS is good for retirement, but it locks your money till 60.
Returns are decent but come with withdrawal restrictions.

Suggestions:

Continue NPS contribution for tax benefit.

Don’t increase allocation here.

Your main long-term growth must come from mutual funds.

Sukanya Samriddhi and PPF
Sukanya: Rs 6,000 monthly for daughter.

PPF: Rs 6,000 monthly.

These are safe, tax-free investments.
But they give 7–8% return, which is fixed-income category.
Long term, they can’t beat inflation fully.

Suggestions:

Continue Sukanya till age 15 of daughter.

Cap PPF at Rs 6,000/month.

Don’t increase traditional schemes further.

For long-term goals, use mutual funds more.

Mutual Fund Investments
You are investing via SIPs in 6 different funds.

Mirae Large & Midcap – Rs 2,000 (3 years)

Quant Small Cap – Rs 5,000 (3 years)

Nippon Multicap – Rs 5,000 (3 years)

ICICI Bluechip – Rs 5,000 (1 year)

Motilal Oswal Midcap – Rs 10,000 (1 year)

Monthly SIP total = Rs 27,000

This is a good practice, but there are few issues:

All are direct plans.

Small cap and midcap funds are high risk.

Direct plans offer no advisory support.

No proper rebalancing or goal tracking.

Disadvantages of Direct Plans:

You are alone in selecting and reviewing funds.

No expert helps you during market downturns.

You may miss better schemes or exit too late.

Emotional investing can harm results.

Direct plan TER is low, but mistakes cost more.

Better Approach:

Shift to regular plans via Certified Financial Planner.

He tracks, rebalances and aligns with your goals.

You get emotional support and expert monitoring.

Small advisory fee ensures professional help.

Fund Structure Suggestion:

40% in large and flexicap actively managed funds.

30% in hybrid aggressive and balanced funds.

20% in midcap (not small cap for now).

10% in short-term debt for liquidity.

This makes your portfolio stable and growth-oriented.

Your Current SIP Tenure
Three SIPs are running till 2027 (3-year SIPs).

Two SIPs end in October 2025.

Don't stop your SIPs when tenure ends.
Mutual funds don’t work like FD maturity.
Wealth grows if SIP continues for 10–15 years.

Suggestions:

Extend your SIPs for longer duration.

Increase SIP amount slowly as EMI reduces.

Align each SIP with a specific goal.

Kid’s Education Planning
Your daughter is 8. You have 8–10 years for higher education.
Son is 3. You have 12–14 years for him.

Your goal is to build strong education fund for both.
You want to do it alone, while spouse builds physical assets.

Action Plan:

Create two child education buckets.

Assign separate SIPs to each goal.

Use child-focused active equity funds.

Invest monthly through regular plans with a planner.

Review yearly progress of corpus.

Target corpus:

Rs 50–60 lakh per child in today’s value.

Will need Rs 1–1.25 crore combined for both.

With 10–12 years horizon, SIP is best route.

Budget Balance and Cash Flow
Monthly income: Rs 1.75 lakh
Loan EMIs: Rs 1.03 lakh
SIP: Rs 27,000
Sukanya + PPF: Rs 12,000
NPS: Rs 5,700
Insurance premium (annualised): Rs 12,500

You are left with little monthly surplus.
Any bonus or hike should go to reduce loans.

Action Plan:

First, clear personal and car loan.

Reinvest the freed EMI into SIP.

Avoid top-up loans or lifestyle loans.

Maintain an emergency fund of Rs 3–5 lakh.

Keep a health insurance floater for family.

Future Roadmap in Simple Steps
Shift from direct to regular mutual funds.

Engage a CFP to guide every step.

Keep SIPs long-term, goal-linked and diversified.

Reduce loan load over next 2 years.

Use bonuses or hikes to build kids' corpus.

Review portfolio every year.

Avoid any new insurance?cum?investment products.

Final Insights
You are doing a lot of right things already.

But some fine-tuning is needed now.

Direct funds and LIC policies may hold you back.

Loans are heavy, need early closure.

Kids' goals need structured planning and tracking.

Mutual funds must be managed actively by expert.

You have limited earning years ahead.
You can build strong wealth with right plan now.
Let your money grow with clarity and care.
And give your children the financial base they deserve.

Best Regards,

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

Ans: You are doing well in many areas.
You have strong savings, good income, and decent insurance coverage.
Your SIP initiation is also timely. You are on the right path.
Let us now work on creating a clear, 360-degree plan for your son’s education and your retirement.

» Income, Expenses and Savings Health

– Annual income is Rs. 15 lakh.
– Household expenses are Rs. 10 lakh.
– You save Rs. 5 lakh each year. That is good.
– Try to increase savings to Rs. 6–6.5 lakh over time.
– This surplus must be directed into structured investments.

» FD and Opportunity Investment: Good Past, But Caution Ahead

– You have Rs. 80 lakh in FD-OD and opportunity assets.
– Your average return of 18–20% is above market average.
– FD returns are 7–8%, which are taxable.
– IPOs, OFS, and short-term loans gave 10–12% returns.
– These strategies worked well earlier.
– But they are irregular and not sustainable.
– IPOs can become illiquid when markets turn.
– Short-term loans involve credit risk.
– Do not rely on them fully for future goals.
– Slowly reduce share in FDs and risky assets.
– Move towards structured long-term mutual funds.

» Equity Mutual Fund Investment Review

– You have started Rs. 20,000/month SIP. That is excellent.
– You chose 3 funds: flexi cap, small cap and balanced advantage.
– This mix gives growth, aggression, and stability.
– It is a good base to start your mutual fund journey.
– Keep monthly SIP discipline. Do not pause it.
– Increase SIP every year by 10–15%.
– Your target SIP should become Rs. 40,000/month in 3 years.

» Emergency Fund and Insurance Review

– Rs. 5 lakh in FD for emergencies is suitable.
– This covers 6 months of expenses. Good backup.
– You have Rs. 15 lakh health cover. That’s fair for now.
– Add top-up health insurance after age 45.
– Term insurance of Rs. 2 crore till age 60 is good.
– Do not take any endowment or ULIP plans.
– If you already hold such policies, plan to surrender them.
– Shift those funds into mutual funds.

» Avoiding Direct Mutual Funds: Key Reasons

– Direct funds give no professional support or reviews.
– You must track, analyse, and adjust yourself.
– Wrong fund selection can hurt your future.
– Regular plans via MFD with CFP give better guidance.
– MFD gives periodic reviews and goal tracking support.
– Also helps with portfolio correction during market cycles.
– The small cost is worth the behavioural and advisory support.

» Why Index Funds Don’t Suit You

– Index funds copy the market without judgement.
– They do not protect during market crashes.
– Active funds use sector shifts and tactical allocation.
– This helps reduce volatility and improve gains.
– In India, many active funds beat index consistently.
– You already use active funds. Continue that path.

» Son’s Education Goal Plan

– Your son is 4 years old now.
– You have 13–14 years to build the education corpus.
– Target Rs. 50–70 lakh in future value.
– For that, keep a separate SIP of Rs. 20,000/month.
– Use 2–3 diversified equity funds with long-term focus.
– Prefer flexi cap and large & midcap fund categories.
– Increase SIP every year by at least 10%.
– Shift to low-risk funds 2–3 years before usage.
– Don’t use this corpus for other needs.
– Tag it strictly for education.

» Retirement Planning: Framework and Action Plan

– You are 38 now. You have 22 years for retirement planning.
– Target corpus should be Rs. 4–5 crore in today’s value.
– Actual need will be higher due to inflation.
– Start Rs. 20,000/month SIP in retirement bucket.
– Increase this to Rs. 40,000 in 3–4 years.
– Use equity-oriented hybrid and flexicap funds.
– Don’t touch this corpus for other needs.
– Keep reviewing this fund yearly.
– After age 55, reduce equity exposure gradually.
– Shift part of corpus to conservative hybrid or low-duration debt funds.

» Real Estate Asset: Keep as Passive Holding

– Your share in family land is only 8.33%.
– Current value is Rs. 18–20 lakh.
– No timeline is known for liquidation.
– Don’t plan goals around this asset.
– Keep it as windfall wealth or legacy.

» Diversification of Overall Investments

– Too much money is still in FDs.
– Slowly move at least Rs. 40 lakh to mutual funds.
– Keep Rs. 10–15 lakh in FD for stability and emergencies.
– Keep Rs. 5–10 lakh in opportunity-based ideas.
– The rest should go into SIP or lump sum mutual fund investing.
– Spread across flexicap, hybrid, and growth funds.
– Limit small cap and thematic exposure to 10–15% only.

» Mutual Fund Categories You Can Explore

– Flexi cap funds for broad-based exposure.
– Large & midcap funds for balance of risk and return.
– Aggressive hybrid funds for steady growth.
– Balanced advantage funds for dynamic allocation.
– Limit small cap to one fund only.
– Avoid thematic or sectoral funds for now.
– Don’t keep more than 5–6 funds overall.
– Too many funds will reduce focus.

» Capital Gains Taxation Rules: New Update

– Equity mutual fund LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Short-term capital gains (STCG) are taxed at 20%.
– For debt mutual funds, gains are taxed as per your income slab.
– This makes equity MFs more tax-efficient than FDs.
– FDs are taxed yearly on interest at slab rate.
– This reduces real returns from FDs.

» Goal-Based SIP Segregation

– Keep education and retirement SIPs in separate folios.
– Tag each fund clearly to a specific goal.
– Don’t mix them with emergency or short-term use.
– Monitor SIPs once every 6 months.
– Review fund performance and rebalance when needed.
– Avoid frequent changes.
– Stay consistent.

» Behavioural Discipline Is More Important Than Selection

– Success in investing depends on discipline.
– Behavioural errors cause more damage than market falls.
– Avoid stopping SIPs when markets fall.
– Don’t chase recent high performers.
– Stick to plan. Review yearly.
– MFD with CFP helps you stay disciplined.
– Emotional decisions kill long-term wealth.

» What to Do Over Next 5 Years

– Increase SIP from Rs. 20,000 to Rs. 40,000/month.
– Reduce FD portion gradually.
– Set SIPs for education and retirement separately.
– Review insurance once every 2 years.
– Don’t buy any insurance-linked investment.
– Add top-up health insurance before age 45.
– Avoid loans and large lifestyle inflation.
– Keep tracking progress on goals yearly.
– Consult your MFD-CFP for regular planning.

» Finally

– You already have a strong foundation.
– With consistent SIPs, your wealth will grow steadily.
– Avoid dependency on IPO and short-term sources.
– Use mutual funds as your core investment vehicle.
– Don’t fall for high-return temptations.
– Stick to planned asset allocation.
– Your son’s future and your retirement will be secured.
– Stay focused and disciplined.

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

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

Ans: Hi Piyush,

Let us cover the details one by one:
1. You are left with approx 25k per month to invest in order to achieve your goals.
2. Make sure to have proper emergency fund of 1.5 lakhs in FD.
3. You should have proper term and health insurance for yourself and family.
4. Monthly investment in PPF - 5k. It is a good debt instrument and gives tax free return of 7.1%. Can continue with it.
5. 2k in SBI Ulip - not recommended. ULIPs are very high charging policies and usually gives an average return of 7-8% which is at par with that of FD. It comes with high hidden charges. Hence avoid taking such policies in future.
6. 12k monthly in mutual funds. OVerall a good amount but not sufficient to cover your goals. You should increase this amount to your maximum capacity.
7. Also start investing some amount for your retired life.

And funds that you mentioned are overlapped and not recommended. Ideally just have large, mid, small and multi cap fund in your portfolio. This mix will give a return of 12-14% on an yearly basis.
Try not to follow random online advice to invest your hard earned money. Take the help of a professional advisor to guide you through.

Hence, stop your current mutual funds and redirect them onto the mentioned mix. Also consider consulting a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/