Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 18, 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 - Jul 14, 2025Hindi

I am 44 years with monthly salary of around 3 lacs plus . I have 3 houses valued 65 lac, 60 lac and 2 Cr. The first two are loan free with monthly rental together around 30 k. Third home I am staying in with loan of around 1 Cr with 1.07 lac emi. At present my mutual fund corpus is 85 lac with 80 k monthly sip. I have mixed of large , madcap and small cap funds. My pf balance is around 25 lac, I have ppf which is maturing next year with around 30 lac corpus. I have taken nps with current annual contribution of 2.4 lacs , current corpus is around 15 lac. I have term plan of 1.5 Cr.with annnual premium of 78 k. and medical insurance for me, wife and son for 20 lac each. The annual premium is around 42 k. . I also have ppf account for wife with around 20 lac corpus which will mature in next 5 years. I will be needing around 50 lac for sons education in next 7-8 years . I am looking at having a corpus of 10 Cr in next 8-10 year's-when I am 55. . Pl suggest

Ans: You are on the right path towards financial independence. You have good savings, stable income, and well-structured investments. You are 44, targeting a corpus of Rs. 10 Cr in 8–10 years. That’s a very practical and focused goal.

Let’s now evaluate your current position and guide you with a 360-degree plan to reach your goal confidently.

? Assessing your current financial position

– Your monthly salary is around Rs. 3 lakh.
– You are investing Rs. 80,000 in SIPs each month.
– You have Rs. 85 lakh mutual fund corpus already.
– Your EPF balance is Rs. 25 lakh.
– Your PPF maturity next year is Rs. 30 lakh.
– NPS has Rs. 15 lakh corpus with Rs. 2.4 lakh yearly input.
– You own three houses. Two are debt-free. One has Rs. 1 Cr loan.
– Your rental income is Rs. 30,000 per month.
– Your EMI is Rs. 1.07 lakh monthly.
– Your insurance cover is adequate.
– You need Rs. 50 lakh for son’s education in 7–8 years.

You are saving aggressively, which is great. Now, the focus should be to streamline and protect these efforts.

? Housing loan and real estate load

– Two homes are loan-free. They generate Rs. 30,000 rental income.
– Third home has Rs. 1 Cr loan. EMI is Rs. 1.07 lakh.
– At this stage, don’t use MF corpus to prepay loan.
– Continue EMI for now as interest is partly tax-deductible.
– Maintain liquidity and avoid locking up funds into illiquid real estate.
– Avoid further property purchases.
– Focus only on financial asset building now.

? Targeting Rs. 10 crore corpus in 8–10 years

– You are 44. Target is age 52–54.
– You already have Rs. 85 lakh in mutual funds.
– Monthly SIP is Rs. 80,000.
– EPF, PPF, and NPS together are around Rs. 70 lakh.
– With current pace and disciplined investing,
– Reaching Rs. 10 Cr is achievable.
– You may need to step up SIP by 10% yearly.
– Also consider investing PPF maturity proceeds properly.
– Corpus needs to beat inflation and cover retirement life.

? Managing SIP portfolio and scheme mix

– You already invest in large, mid, and small cap funds.
– This is a healthy mix for long-term growth.
– Ensure there is also a flexi cap fund in portfolio.
– Avoid sectoral or thematic funds.
– Review fund performance every year.
– Exit underperformers in consultation with Certified Financial Planner.
– Avoid investing in index funds.
– Index funds track market passively and can’t manage downside risk.
– Actively managed funds offer better downside protection.
– They aim for superior returns with active strategy.

? Direct funds vs. regular funds

– If you are investing in direct plans, reconsider.
– Direct funds may save cost but offer no advice.
– Wrong fund selection or wrong time exit can damage returns.
– Regular plans through MFD with CFP give personalised support.
– Portfolio tracking, SIP health check, and timely fund switch are key.
– These services can save lakhs over time.

? Utilise PPF maturity wisely

– Your PPF will mature next year. Corpus is Rs. 30 lakh.
– Do not keep it idle in savings account.
– Do not re-invest in real estate either.
– Use this amount for retirement or goal-based MF investments.
– Prefer hybrid or balanced funds for this portion.
– This gives growth with stability.

? Wife’s PPF maturity and planning

– Wife’s PPF has Rs. 20 lakh. Maturing in 5 years.
– Use this as part of retirement or son’s education planning.
– Start discussing goals with her.
– You can plan joint investment in mutual funds post maturity.

? Education goal of Rs. 50 lakh

– You need Rs. 50 lakh in 7–8 years.
– Do not disturb retirement-linked investments for this.
– Create a separate SIP or STP for this goal.
– Prefer hybrid or aggressive hybrid funds.
– These offer stability plus growth over mid-term.
– Rebalance gradually 3 years before goal.
– Shift to conservative or debt funds slowly.

? Optimise NPS strategy

– You contribute Rs. 2.4 lakh yearly to NPS.
– Current corpus is Rs. 15 lakh.
– This is a useful retirement tool.
– Don’t stop it. But don’t over-rely on it either.
– 60% of NPS withdrawal will be tax-free.
– 40% must be used to buy pension.
– That limits flexibility.
– Hence, build more wealth via mutual funds alongside NPS.

? Life insurance and health cover status

– Term insurance of Rs. 1.5 Cr is good.
– Annual premium of Rs. 78,000 is fine for your age.
– Medical cover of Rs. 20 lakh each is also sufficient.
– Don’t go for ULIPs or endowment plans.
– Don’t combine insurance and investment.
– Keep them separate.
– If you have any LIC savings plans or ULIPs,
– Surrender and reinvest into mutual funds.

? Retirement income planning beyond corpus

– After 10 years, you can consider retiring or slowing down.
– You will have rental income from two homes.
– You will have EPF, PPF, NPS, and MF corpus.
– Focus now should be on inflation-beating growth.
– Later, shift slowly into safer assets post age 52.
– Use SWP from mutual funds to generate monthly income.
– Avoid annuities. They lock money and give poor returns.

? Tax awareness and withdrawal planning

– Mutual fund taxation needs care.
– LTCG above Rs. 1.25 lakh is taxed at 12.5%.
– Short-term gains are taxed at 20%.
– Plan redemptions in a tax-efficient way.
– Spread withdrawals across years if possible.
– Use SWP to manage cash flow and taxes.
– Keep track of debt fund taxation.
– Debt fund gains taxed as per income slab.

? Future corpus tracking and discipline

– To reach Rs. 10 crore, stay invested without breaks.
– Step-up SIP every year by 10–15%.
– Reinvest PPF maturity and annual bonus if any.
– Don’t time markets.
– Rebalance asset allocation every year.
– Don’t chase trendy funds.
– Review portfolio with Certified Financial Planner annually.
– Stick to long-term approach.

? Risk protection and contingency planning

– Maintain emergency fund of 6 months expenses.
– Don’t mix this with SIP or long-term funds.
– Keep it in liquid mutual fund or sweep FD.
– This protects you during job loss or medical crisis.
– Also review nomination on all accounts.
– Create a basic Will for asset distribution.

? Estate planning and wealth transfer

– You own 3 houses. Have large financial corpus.
– Create a Will to ensure smooth asset transfer.
– Register the Will legally.
– Involve family in financial discussions once a year.
– This prevents confusion later.
– Also makes family confident in handling wealth.

? Finally

– You have a strong financial base already.
– You are investing in the right direction.
– Now focus on consistency and protection of wealth.
– Your Rs. 10 crore target is realistic.
– With correct fund mix, SIP step-up, and annual reviews,
– You can achieve and exceed this corpus confidently.
– Take support of a Certified Financial Planner for annual reviews.
– Make financial life simpler, goal-based, and peaceful.

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

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.