Hi I am 43 year old my current in-hand salary is 1 lakhs per month I have 7 years daughter . Planning to buy home in Pune Hinjewadi area ,but not sure if it's a wise decision based upon current economical condition ? I have 18 years of experience in IT industry so job security is also a point which I should consider .please suggest how much home loan I can pick in current scenario ? My investment details as below: 22 lakhs in mutual fund ,3 lakhs in stock market,PF around 20 lakhs ,SSY for daughter 6 lakhs .I started ppf this year and my current Bank balance 40 lakhs

Ans: ? Current Financial Position – A Quick Assessment
– Your monthly income is decent for long-term planning.
– You have a good mix of assets: mutual funds, stocks, PF, SSY, and bank savings.
– Bank balance of Rs 40 lakhs adds strong liquidity.
– PF and SSY are good for long-term safety and child goals.
– Mutual funds are suitable for long-term wealth building.
– Stocks add risk but can boost returns if managed wisely.
– Your overall portfolio shows disciplined saving habits.
– You’ve laid a strong financial foundation. That is appreciable.

? Dependents and Life Goals – Key Areas to Align
– You have a 7-year-old daughter.
– Her education and marriage will need large funds in future.
– You are considering a home purchase.
– These are two major life goals – home and child’s future.
– A clear plan must balance both needs.
– Do not let one goal compromise the other.

? Real Estate Decision – Strategic Evaluation
– Hinjewadi is a tech-centric locality. It is good for own stay.
– But avoid seeing it as a high-return investment.
– Property prices in cities grow slower than many believe.
– Maintenance, taxes, and interest costs eat into returns.
– Owning a house can reduce rent burden and give stability.
– But it also reduces liquidity and flexibility.
– Buying now must be based on need, not fear or FOMO.
– Job stability should play a major role in this decision.

? Job Stability – Critical to Loan Commitment
– IT jobs today come with some risk of layoffs.
– Economic cycles and tech disruptions can affect job security.
– Do not over-leverage with EMI assuming job is always safe.
– Have a 6–12 months emergency corpus before loan.
– Ensure your EMI can be managed even during job change.
– Ideal EMI should be less than 35% of your take-home income.
– That means not more than Rs 35,000 EMI per month in your case.
– Plan for house only if EMI + current expenses are manageable.

? Home Loan Eligibility – Realistic Borrowing Capacity
– Banks generally offer up to 60 times monthly income.
– For Rs 1 lakh monthly salary, loan eligibility is around Rs 50–60 lakhs.
– But just because bank offers, don’t borrow maximum limit.
– Keep your comfort and cash flow in mind, not bank’s limits.
– Consider 15–20 years term to lower EMI burden.
– Take term insurance equal to home loan value.

? Buying vs Delaying Home Purchase – A Balanced View
– If you delay home purchase, you retain Rs 40L liquidity.
– That money can grow better in mutual funds over 5–10 years.
– A well-performing mutual fund can beat property returns.
– You can then buy home later with higher down payment.
– This will reduce or avoid future EMI burden.
– It also adds flexibility in case of job change or relocation.
– If home purchase is not urgent, postponing is wise.

? How to Use Your Existing Savings – Strategic Allocation
– Rs 40 lakhs in savings can be split for multiple needs.
– Keep Rs 6–8 lakhs for emergency fund in FD or liquid fund.
– Reserve Rs 10–12 lakhs for daughter’s future.
– Invest this in conservative hybrid mutual funds.
– Consider systematic transfer to equity mutual funds over time.
– Use Rs 15–20 lakhs for home down payment, only if buying now.
– Try to limit home cost to Rs 60–70 lakhs total.
– That way, your home loan stays under Rs 40–45 lakhs.

? Mutual Fund Holdings – Efficient Yet Needs Monitoring
– Rs 22 lakhs in mutual funds is a strong base.
– Ensure you are investing through a Certified MFD and CFP.
– Avoid direct plans. They offer no expert support.
– Regular plans offer handholding, reviews and rebalancing.
– That adds more value than small expense ratio savings.
– Periodic SIPs and STPs should be aligned with goals.
– Check if funds are diversified by category and market cap.
– Keep 2–3 large-cap, flexi-cap, and hybrid funds.

? Stock Investments – Risk Awareness Is Key
– Rs 3 lakhs in stocks is fine as long as it's within limit.
– Do not increase stock exposure unless you have expertise.
– Stocks are volatile. They should not be used for near-term goals.
– Do not use stock money for home down payment.
– Let stocks grow for long-term, or shift to mutual funds.

? Provident Fund and PPF – Long-Term Security
– Rs 20 lakhs in PF is helpful for retirement safety.
– Keep contributing regularly and track interest updates.
– PPF is new, but useful for long-term and tax-free compounding.
– Stick to full Rs 1.5 lakh contribution yearly if possible.
– Don’t use these funds for short-term needs or home buying.

? SSY for Daughter – Continue With Discipline
– Rs 6 lakhs in Sukanya is a good move.
– Continue yearly deposits till maturity.
– Don’t stop or delay contributions.
– It gives assured returns and tax benefits.
– Align it with higher education or marriage milestone.

? Should You Surrender Any Existing Policy?
– You have not mentioned any ULIP or LIC plans.
– If you hold any traditional or ULIP policies, consider surrender.
– Reinvest surrender value in mutual funds via SIP.
– It gives more transparency and better long-term growth.
– Also keeps your goals separate and trackable.

? Goal-Based Allocation – Must Prioritise Now
– Split your goals clearly: home, retirement, child education.
– Assign savings to each. Track progress every year.
– Don’t mix house and child goals in same fund.
– Keep investments dedicated and aligned to time horizon.

? Risk Management – Don’t Overlook Insurance
– Ensure you have term insurance of at least Rs 1 crore.
– Health insurance should cover family sufficiently.
– Do not depend on office cover alone.
– Add critical illness or accident rider if needed.
– Insurance is not investment. Keep it pure and separate.

? Tax Planning – Optimise Using Existing Investments
– Use PF, PPF, SSY and ELSS for 80C benefits.
– Don’t invest just for saving tax.
– Align tax-saving with actual financial goals.
– ELSS can be part of equity exposure for long-term.
– File returns on time and monitor capital gains yearly.

? Index Fund Clarification – Why They’re Not Ideal
– Index funds do not beat market returns.
– They copy the market. No room for outperformance.
– They lack fund manager’s active decision-making.
– They work best in US markets, not in India.
– In India, active funds often beat index over long term.
– Volatile markets need smarter rebalancing.
– Actively managed funds offer that flexibility.
– That’s why MFD-led active fund route is better.

? Final Insights
– Buying a house is not a must. It’s a choice.
– Base that choice on affordability, not emotion.
– If job stability is a concern, delay purchase.
– Invest surplus in mutual funds to grow wealth.
– Reassess housing after 3–5 years if situation changes.
– Ensure goals are well funded, especially child’s future.
– Maintain liquidity for peace of mind.
– Avoid locking all money in one illiquid asset.
– Follow goal-based, well-monitored strategy with expert help.
– That brings clarity and long-term peace.

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