Dear sir, I am 43 old , gwtting salary 89,000/-. Toom a home loan rs.30 lacs recently to buy home which is given on rent. Also mothly 14k mutual funds. 3k Rd, 50lacs term insurance, ppf -10 lacs and some 10 lacs of life insurance. Please give...

Dear sir, I am 43 old , gwtting salary 89,000/-. Toom a home loan rs.30 lacs recently to buy home which is given on rent. Also mothly 14k mutual funds. 3k Rd, 50lacs term insurance, ppf -10 lacs and some 10 lacs of life insurance. Please give me advice further how can i improve my wealth.

Ans: You are already managing many aspects of your finances with discipline. At 43, it is the right time to fine-tune your strategy to build wealth for the long term. Let us examine your current structure and create a 360-degree plan for your financial growth.

Current Financial Picture – Let’s Review
You have a good starting point already:

Monthly salary: Rs. 89,000

Home loan: Rs. 30 lakh, property is rented out

Mutual Fund SIP: Rs. 14,000 monthly

Recurring Deposit (RD): Rs. 3,000 monthly

Public Provident Fund (PPF): Rs. 10 lakh already invested

Term Insurance: Rs. 50 lakh coverage

Life Insurance: Rs. 10 lakh (likely traditional policy)

Your intention to grow your wealth is strong. Now let’s evaluate what can be adjusted or improved.

Cash Flow Assessment – Know Your Numbers
Your monthly income is Rs. 89,000. From this, following goes into investments:

Rs. 14,000 to mutual funds

Rs. 3,000 to RD

That totals Rs. 17,000 monthly. This is around 19% of your salary. While this is good, you should aim for 30% if possible.

Rent from property adds income. But don’t count it for daily expenses.
Use it to partly offset home loan EMI or reinvest elsewhere.

Your Mutual Fund SIP – Check Allocation Mix
You are investing Rs. 14,000 monthly in mutual funds.

But key question is: What type of funds?

If you are investing mostly in small cap or thematic funds, rebalance it.

You must include large cap and diversified equity as well.

You must also include balanced advantage funds.

Don’t hold more than 4–5 schemes in total.

Avoid index funds due to zero flexibility and lack of downside protection.

Actively managed funds give better stock selection in market corrections.

If you are using direct mutual fund platforms, stop now.
Invest through regular plans via MFD who holds CFP credential.
They help you with rebalancing, reviews and tax support.
Direct plans may look cheaper but lack expert involvement.
Mistakes in fund choice or exit timing can cost you more later.

PPF Investment – Very Good Long-Term Pillar
You already have Rs. 10 lakh in PPF. That’s excellent.

Continue investing Rs. 1.5 lakh yearly, if possible

It gives tax-free returns and helps in retirement corpus

PPF is safe and suits long-term financial security

Don’t treat PPF as emergency money. Let it grow undisturbed till age 60.

Life Insurance – This Needs Correction
You said you have Rs. 10 lakh in life insurance.
If these are traditional or endowment plans, they are not wealth creators.
Returns are very low, often below inflation.

Also, they mix insurance and investment. That is not good.

What You Should Do:

Check policy surrender value.

If the loss is minimal, stop paying further premiums.

Surrender the policy and reinvest that amount into mutual funds.

Insurance should be only through pure term plan.

You already have Rs. 50 lakh term cover. That’s good.

Consider increasing it to Rs. 1 crore. You still have earning years left.

Term plan premium is small but gives full protection to your family.

Home Loan – Plan Smartly
You have taken Rs. 30 lakh home loan. That is fine.
It is good that the house is rented. That gives extra cash.

But rental income is usually 2–3% of property cost.
And loan interest is 8–10% or more.

So this is not a wealth creator right now.
Still, use the rent wisely.

Key Suggestions:

Don’t use rent for lifestyle.

Use it to part-prepay home loan every year.

Ask bank to reduce tenure, not EMI.

This reduces interest cost greatly.

Try to finish loan before retirement age.

Prepayment every year, even if small, helps you save a lot of interest.

Recurring Deposit – Reduce It Gradually
You are investing Rs. 3,000 monthly in RD.

RD gives low returns (6% or less)

After tax, returns are even lower

Instead, shift slowly from RD to mutual funds

You can stop RD and add Rs. 1,000–2,000 more to SIP.
Equity mutual funds give much better long-term growth.

RD is fine for short-term needs. But not for wealth building.

Emergency Fund – Have You Built It?
You must keep 6 months’ expenses as emergency fund.
This can be in liquid mutual funds or sweep-in FD.
Don’t depend on RD or PPF for emergency use.

Estimate your monthly expenses and save 6x that in a safe instrument.
Emergency fund avoids stress during medical or job issues.

Retirement Planning – Act Now, Not Later
You are 43 now. Retirement is 15 years away.
It is important to act now and build your retirement fund.

Keep SIP running and increase it by 10% every year

Don’t break long-term funds unless it is urgent

Ensure your investment mix is 60–70% equity, rest in PPF and debt

Keep reviewing funds every year with MFD + CFP guidance

Use mutual funds for growth, PPF for safety and term plan for protection.

Additions You Should Plan Now
Health Insurance for yourself and family. If already taken, review sum insured.

Increase SIP gradually. Target Rs. 25,000 monthly over next 2 years.

Stop any future LIC or ULIP plans. Don’t mix insurance and investing.

Use rent income to repay home loan and increase equity investments.

Also, avoid taking loans for travel, gadgets or family functions.
Your salary must create future wealth, not just fulfil present wants.

Check These Things Every Year
Track mutual fund growth and do yearly rebalancing

Check term plan coverage. Increase if salary increases

Revisit health insurance cover regularly

Make will or nomination for all assets

Review asset allocation: equity, debt, gold – adjust when needed

Avoid chasing “hot” fund themes like AI, pharma, etc. blindly

Stay in core diversified equity funds with strong track record.
Review portfolio only once or twice a year. Not every week.

Finally
You are on the right track. You are saving and investing already.
You are also paying your loan on time. That’s a good discipline.

Now you need to improve the quality of investments.
And also increase the savings percentage step by step.

Here’s your action plan from here:

Stop RD slowly and increase SIP

Check and surrender poor life insurance plans

Continue PPF every year till retirement

Use rent income to part-prepay home loan

Review your mutual fund portfolio with help of MFD + CFP

Increase term cover to Rs. 1 crore if affordable

Build emergency fund of 6 months’ expenses

Set clear goal: retirement, child’s higher education, or passive income

Stick to plan. Don’t chase quick returns.

You don’t need 20 funds. You need 4–5 good ones, reviewed yearly.
And you don’t need to work harder, just let your money work smarter.

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

Ans: You are 32 years old with stable PSU income. That’s a great start.

You are saving Rs.50,000 per month in mutual funds. Very disciplined.

You already have Rs.30 lakhs in mutual funds and shares. That’s significant.

You also have Rs.1 crore term cover and Rs.10 lakh health cover. Very good.

You also have no EMI or loan pressure. That’s a strong financial position.

These things show you are managing your finances well. Appreciate your approach.

Now we will go deeper. Let’s optimise your future wealth creation plan.

You Should Not Invest in Real Estate

You asked if real estate should be part of your portfolio.

Let’s assess this clearly.

Real estate blocks a large amount of capital.

It lacks liquidity. You cannot sell quickly if you need money.

Property requires maintenance, taxes, and legal care.

Rental yield is usually low in India. Around 2 to 3% only.

Also, resale price depends on market cycles. Not always predictable.

Real estate brings emotional stress and paperwork also.

At your stage, real estate is not needed.

You already have better-performing investments in mutual funds.

Keep your portfolio simple and flexible.

Your Mutual Fund Investment is a Good Strategy

You invest Rs.50,000 monthly in mutual funds. That’s a strong move.

Mutual funds give better flexibility and transparency.

You can start, stop, increase or decrease anytime.

There is professional fund management involved.

They manage risk and returns with experience.

You must invest only in actively managed mutual funds.

Do not invest in index funds.

Index funds only copy the index. No research involved.

They cannot react to market changes actively.

They give average returns, not superior performance.

You must avoid index funds for wealth creation.

Actively managed funds adjust based on market signals.

They aim to beat the market, not just copy it.

Stay with actively managed funds only.

Don’t Invest in Direct Funds

Direct mutual funds may look cheaper. But they lack guidance.

You invest without personalised advice in direct plans.

No expert is there to guide rebalancing or review.

Many investors pick wrong funds in direct mode.

They also redeem early due to fear.

Regular plan via Certified Financial Planner gives peace and structure.

It includes risk profiling, goal matching and review sessions.

This helps you stay disciplined and focused.

Even fund selection is better aligned to your goals.

Stick to regular funds with guidance.

Don’t chase small savings by going direct.

Review the Structure of Your Portfolio

You already have Rs.20 lakhs in mutual funds.

And Rs.10 lakhs in direct shares.

Let’s structure this better now.

Split your overall goals into short, mid, and long-term buckets.

Each goal must have a separate investment plan.

Short-term goal (1-2 years) needs liquid and low-risk funds.

Mid-term goals (3-5 years) need hybrid or balanced funds.

Long-term goals (7+ years) need good quality equity funds.

This kind of bucket structure gives clarity and peace.

Also helps in managing your asset allocation better.

Your Direct Equity Holding Needs Assessment

You have Rs.10 lakhs in stocks. That’s a good size.

But individual shares carry high risk.

Unless you have time and skill, this can be dangerous.

One poor choice can affect overall return.

Mutual funds reduce this risk with diversification and expert handling.

If you are managing shares yourself, check past returns.

If returns are not beating mutual funds, shift some to funds.

Also avoid overexposure to few companies or sectors.

Diversification is not optional. It is safety.

Don’t exceed 20-25% of portfolio in direct stocks.

Keep the rest in mutual funds for stability.

Build an Emergency Fund if Not Already Done

You did not mention emergency fund in your note.

This is a must before all investments.

Keep at least 6 months of expenses aside.

For you, that may be Rs.6 to 7 lakhs.

Use liquid funds or sweep-in FDs.

This protects against job loss or medical event.

This should not be mixed with investment portfolio.

Keep it separate and untouched.

Stay Away from Fancy or Trendy Investments

Avoid crypto or other unregulated products.

These may sound attractive but are risky.

Your current approach is working well.

Stick to what is tested and consistent.

Wealth creation is not about thrill. It is about structure.

Focus on long-term strategy, not temporary fads.

Track and Review Portfolio Annually

You are already investing regularly.

But don’t forget review is also key.

At least once a year, check if all goals are on track.

Check if fund performance is aligned to benchmark.

Review asset allocation—debt vs equity.

Also match your progress with life goals.

Adjust SIP amounts if income has increased.

This gives more power to your plan.

Do Not Increase Lifestyle Expenses Unnecessarily

You don’t have EMI burden. That’s good.

But avoid the trap of lifestyle inflation.

Don’t increase your spending just because salary increases.

Use that extra income to invest more.

Increase SIP every year with salary growth.

This step alone can build huge wealth.

It’s called SIP step-up strategy. Very powerful.

Think About Retirement Planning Actively

You are just 32 now. Retirement looks far.

But this is the best time to build retirement fund.

Time is your biggest strength today.

Even small SIP now becomes big later.

Start a separate SIP only for retirement.

Don’t mix it with other goals.

Keep investing in equity mutual funds for this.

You can also use top-up SIP feature for this.

Let this fund run for next 25-30 years.

It will take care of your future freedom.

Be Mindful of Taxation on Mutual Funds

Tax rules are changing now.

LTCG on equity funds above Rs.1.25 lakh is taxed at 12.5%.

STCG on equity funds is taxed at 20%.

Debt mutual funds are taxed as per your income slab.

So, avoid frequent switching and redeeming.

Stay long term to reduce tax impact.

Also track capital gains each year for filing.

Tax planning is also part of wealth building.

Avoid Buying ULIPs or Traditional Insurance Plans

You did not mention holding ULIPs. That’s good.

Don’t mix insurance and investment.

ULIPs and endowment plans give low return.

They also have high charges and long lock-in.

Better to keep term insurance and mutual funds separate.

If anyone offers such combo products, say no.

Use Certified Financial Planner for 360-Degree View

Your portfolio is large now.

A Certified Financial Planner can help manage this better.

They help align all goals—retirement, child future, home, travel.

They also provide review, rebalancing, taxation, insurance planning.

This support improves your peace and clarity.

Don't rely on tips or friends' advice.

Certified professionals offer structured and tested solutions.

You already have strong base. Now move to structured approach.

Finally

Your financial journey is on a very good path.

You have high savings, no debt, and strong discipline.

You also took right steps with insurance.

Now avoid real estate investment. It’s not needed.

Stick with mutual funds, avoid index and direct funds.

Review equity stocks. Don’t exceed 25% exposure.

Use a proper goal-based approach for each investment.

Avoid lifestyle creep. Step-up your SIP yearly.

Add a dedicated retirement fund.

Track taxes and review portfolio yearly.

Get help from Certified Financial Planner for better alignment.

You are already ahead of most. Keep this momentum going.

Your wealth will grow safely and strongly with this direction.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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