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Naveenn Kummar |233 Answers |Ask -Follow

Financial Planner, MF, Insurance Expert - Answered on Sep 18, 2025

Naveenn Kummar has over 16 years of experience in banking and financial services.
He is an Association of Mutual Funds in India (AMFI)-registered mutual fund distributor, an Insurance Regulatory and Development Authority of India (IRDAI)-licensed insurance advisor and a qualified personal finance professional (QPFP) certified by Network FP.
An engineering graduate with an MBA in management, he leads Alenova Financial Services under Vadula Consultancy Services, offering solutions in mutual funds, insurance, retirement planning and wealth management.... more

Asked by Anonymous - Sep 17, 2025

I am 48. Currently i have house on which i am getting 20k per month. I am earning 2L per month. I have 60L in PF. Currently i have 2L in mutual funds and investing 15k in mutual fund. Every year planning to step up 1 or 2k in mutual funds. FDs 10L. Planning to add 1L every month in FD. Shares of worth 15 L. Also every month investing 2k in ATAL PENSION YOGNA for me and spouse. Staying in own flat. No EMIs. One more flat getting rent of 10k.

Ans: dear sir,

???? Current Snapshot (Age 48)

Income: ?2L/month (active salary) + ?30k rent (20k + 10k)

Assets:

PF: ?60L

Mutual Funds: ?2L (SIP ?15k, increasing by ?1–2k yearly)

FDs: ?10L (adding ?1L/month going forward)

Shares: ?15L

Real estate: 2 rental flats + self-occupied flat

Liabilities: None (No EMIs ????)

Pension: APY for self & spouse (will give small fixed pension, not inflation-adjusted).

Lifestyle: No mention of major loans, kids’ education, or big expenses left.

???? Likely Retirement Age → Let’s assume 60

That gives you 12 years to accumulate wealth.

Step 1: Estimate Corpus Requirement

Assume expenses today: let’s say ?1.2–1.5L/month for family (since income is ?2L and you’re saving a good part).

At 6% inflation, in 12 years this becomes:
?1.5L × (1.06^12) ≈ ?3L/month (~?36L/year).

For a safe withdrawal of 4%, you’d need ?9 crore corpus at 60.

Step 2: Growth of Current Assets

PF (?60L @ 7% for 12 years): ≈ ?1.35 crore

FDs (?10L now + ?1L/month @ 6% for 12 years): ≈ ?2.25 crore

Mutual Funds (?2L now + ?15k/month increasing 2k yearly @ 11%): ≈ ?80–90L

Shares (?15L @ 10% CAGR for 12 years): ≈ ?47L

Rental Income: 30k/month today → grows with time, but even if it stays constant, that’s ?3.6L/year = ~?43L in 12 years.

???? Projected Total (age 60): ~?5–5.5 crore (without selling property).

Step 3: Gap Analysis

Target = ?9 crore
Projected = ?5.5 crore
Gap = ~?3.5 crore

Step 4: Action Plan

Increase Equity Allocation

You are saving heavily into FDs (?1L/month). That builds safety but reduces long-term growth.

Consider splitting:

?50k/month → Equity Mutual Funds (large-cap + flexicap + midcap mix)

?50k/month → FDs/short-term debt (for safety/liquidity)

This shift can add ~?1.5–2 crore extra growth over 12 years.

Step-up SIPs

Your ?15k MF SIP is too small compared to your income.

Target ?40–50k/month SIP in equity within next 2 years.

Step up 10–12% every year.

Rental Properties

Both flats give ~?30k/month (?3.6L/year), which is only ~2% yield on property value.

If liquidity is ever required, consider selling one flat and reallocating into equity/debt mix. That could boost returns.

Retirement Strategy

At 60, aim for 50:50 equity–debt split.

Use SWP (Systematic Withdrawal Plan) from equity MFs + FD interest + rental income.

Keep 1 year’s expenses in liquid funds always.

? If you rebalance savings (FD 50%, Equity 50%), increase SIPs gradually, and possibly monetize 1 flat before/around retirement, reaching close to ?9 crore is realistic.

It is strongly recommended to consult a QPFP/Financial Planner to work on detailed cash flow budgeting, expense control, and long-term goal planning tailored to your family’s needs.

Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
https://members.networkfp.com/member/naveenkumarreddy-vadula-chennai

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