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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 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 - Jun 21, 2025Hindi

Money

Dear Sir i am 52 yrs old. I have around 12lakhs per annum income. No particular loan as such. How do i start saving for my elder daughters marriage and younger ones higher education. I have two sips of 2500 and 1000 each. I hv not been able to save much money all these years. I would like to have a saving of around 30lakhs in the next 10 years. Pls guide

Ans: I appreciate your clarity on goals and income. Let us look at this carefully in a clear 360?degree plan.
Your discipline to start SIP is a good first step.

Understanding Your Financial Situation
You are 52 years old with Rs 12 lakh yearly income.

You have no current loans. That increases flexibility.

You have two SIPs totalling Rs 3,500 monthly.

You aim to save Rs 30 lakh in 10 years.

You need funds for elder daughter’s marriage and younger daughter’s higher education.

These are important family goals. Your intention to build savings now is commendable.

Goal Breakdown: Marriage and Education Costs
Marriage for daughter in 10 years

Marriage costs often rise faster than inflation.

But you have a clear timeline.

Higher education for younger daughter

May begin in 8–12 years.

Cost of professional education is high and rising.

Having separate corpus for each is wise.

So, we can split the Rs 30 lakh into two parts for each goal. This helps focus your investment planning.

Importance of Emergency and Protection
Before building goal-wise corpus, ensure safety nets are in place:

Maintain 6 months of living expense as an emergency fund.

This fund needs to be liquid and accessible.

Take adequate health insurance for family.

Term insurance for yourself can protect your daughters’ future.

These steps reduce financial risks. That leaves your investments safe from unexpected needs.

Designing a 360?Degree Investment Plan
1. Build Emergency Fund

Keep 6 months of expense in a liquid fund or bank FD.

Do this before increasing SIP or lump sum investments.

2. Protect Family Financial Future

Get a term insurance cover equal to 8–10 times your annual income.

Health insurance for whole family is essential.

These ensure your goals stay safe even in adversity.

Segregating Goal-Wise Investment Plan
We have two goals in 10 years. Let’s allocate:

Elder daughter’s marriage → Rs 15 lakh

Younger daughter’s higher education → Rs 15 lakh

You can start two separate investment buckets.

Choosing the Right Investment Vehicles
You have started with mutual fund SIPs. That is good.

But I advise to invest through regular plan mutual funds via an MFD with CFP guidance.
Direct plans may seem cost-effective. But they lack professional monitoring.
Regular funds under CFP advice bring several benefits:

Asset allocation matching your changing needs

Strategic rebalancing

Behavioural coaching during market volatility

Clear exit planning aligned with goals

This human guidance is crucial especially when time horizon is limited.

Equity vs Debt Allocation
You are 8–10 years away from your goals. A mix of equity and debt suits such horizons.

Start with 50–60% in equity mutual funds

40–50% in debt-oriented funds

Why this blend?

Equity gives growth over long period

Debt brings stability and safety nearer to goal date

Keep reviewing your allocation every 2 years. Shift gradually more to debt as you approach the goal year.

SIP Structure and Lump Sum Additions
You currently invest Rs 3,500/month. This needs to grow.

Increase monthly SIP from Rs 3,500 to Rs 5,000

Split it into two goal buckets:

Rs 2,500 for marriage

Rs 2,500 for education

Additionally, use any spare funds or windfalls for lump sum top-ups over the years.
Top-ups reduce pressure to save more later.

Fund Categories to Consider
For equity part:

Large?cap funds for stability and core growth

Multi?cap or mid?large cap blend for balanced exposure

AggrESSive hybrid fund for growth with some cushion

For debt part:

Invest in quality short-term or medium-term debt funds

Consider liquid funds for your emergency corpus

Avoid index funds. They offer no downside protection. Active funds with a fund manager can adjust to markets.

Timing of Corpus Withdrawal
As each goal approaches, you must ensure money is safe and available:

Start shifting funds from equity to debt by the fourth year before goal.

This gradual shift reduces market risk.

In final year, hold funds mainly in debt/liquid categories for liquidity.

This timing approach preserves your money while still gaining from equity growth early on.

Tax Awareness
Withdrawal timing affects taxes. Keep this in mind:

In equity funds

Long-term capital gains (LTCG) above Rs 1.25 lakh taxed at 12.5%

Short-term gains taxed at 20%

In debt funds

Gains taxed as per your income tax slab

Plan withdrawals with awareness of these rules. Avoid selling large lumps in one year.

Monitoring and Reviewing Strategy
Your plan will need yearly review and adjustments. This is the role of a CFP?supported MFD:

Track fund performance and compare with benchmarks

Check if SIPs are running in right funds

Reassess goal timelines if priorities change

Adjust asset allocation if financial life events occur

This ensures your plan stays on track over 10 years.

Sequential Action Plan
Year 1:

Build emergency fund

Buy health and term insurance

Set up two regular-plan SIPs (Rs 2,500 each) for each goal

Years 2–5:

Increase SIP top-ups based on surplus or windfalls

Add lump sums annually to each bucket

Keep allocation at 60% equity / 40% debt

Years 6–8:

Begin shifting 20–30% from equity to debt in each bucket

Keep monitoring equity funds’ performance

Years 9–10:

Equity reduced to 20–30% max

Debt/liquid funds hold most of corpus

Be ready to withdraw in goal year

Education and Ethos
This disciplined, long-term approach teaches your daughters:

Value of regular savings and planning

Patience and delayed gratification

Responsibility and financial awareness

Your journey is more than saving money. It is also teaching important life lessons.

Final Insights
You have no loans. That gives freedom to save

Focus on building emergency and protective cover first

Set up separate goal-wise investment buckets

Use regular-plan equity and debt funds via CFP-led MFDs

SIP + lump sum investment strategy works best

Gradually shift from equity to debt as the goal nears

Tax awareness and monitoring helps optimise returns

Keep reviewing the plan yearly

A 360?degree approach now will help you reach Rs 30 lakh in 10 years.

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.

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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 29, 2024

Asked by Anonymous - Apr 29, 2024Hindi

Money

Dear Sir My age is 34 yrs. I have working alredy 10 yrs and my average total income till date 40L minimum. Still I did not save 1rs till now. Request you please advice how to start savings also make future retirement plan. My expected retirement age is 55yrs.

Ans: It's never too late to start saving for retirement, and kudos to you for taking this important step at 34! Here's how to get on track:

1. Assess your situation:

Track your expenses: For a month, track where your money goes. This will help identify areas to cut back and free up savings.
Emergency fund: Aim for 3-6 months of living expenses in an easily accessible savings account for emergencies.
2. Start saving:

Automated savings: Set up a Systematic Investment Plan (SIP) in a mutual fund. Start small, even with ?1,000 per month, and gradually increase as you get comfortable.
3. Retirement plan:

Employer benefits: Check if your employer offers a retirement plan like a Provident Fund (PF). Contribute the maximum allowed for tax benefits and long-term savings.
Individual options: Explore options like National Pension System (NPS) or Equity Linked Savings Schemes (ELSS) for long-term growth. Talk to a Registered Investment Advisor (RIA) for personalized advice based on your risk tolerance and goals.
Here's a breakdown based on your income:

You mentioned an average annual income of ?40 lakhs. Aim to save at least 10-15% of your income, which translates to ?4,000-?6,000 per month.
Remember: Consistency is key! Starting early, even with a small amount, allows time for your savings to grow through the power of compounding. Don't be discouraged if you can't save a lot initially. Every little bit counts!

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 26, 2024

Asked by Anonymous - May 25, 2024Hindi

Money

I am 40 and my husband is 44yrs old together we earn 2lakh per month, we have housing loan for 80 lakh and 18lakh respectively, I have a 13yr old daughter how can I save money for our retirement and child higher education, please guide

Ans: Planning for Retirement and Child's Higher Education
Your combined monthly income of Rs 2 lakh is a solid base to build on. Managing housing loans while planning for retirement and your child's education requires a strategic approach. Let’s break it down step by step.

Understanding Your Financial Situation
You have an Rs 80 lakh housing loan and another Rs 18 lakh housing loan. Balancing these loans with your income and future goals is key. Your daughter is 13, so you have a few years to save for her higher education.

Setting Clear Financial Goals
1. Retirement Planning

You and your husband need a comfortable retirement plan. Think about the lifestyle you want post-retirement and estimate your expenses.

2. Child’s Higher Education

Higher education can be costly. Estimate the amount needed for her college fees, living expenses, and other related costs.

Creating a Budget
A well-structured budget helps manage expenses and savings efficiently. Allocate portions of your income to different needs:

Housing loan EMIs
Household expenses
Emergency fund
Investments for retirement
Savings for child’s education
Reducing Debt
Prioritise Debt Repayment

Focus on repaying the higher interest loan first. This reduces your financial burden faster and frees up money for savings and investments.

Consider Refinancing

Explore refinancing options to lower your EMIs. This can give you more disposable income to allocate towards your goals.

Building an Emergency Fund
An emergency fund should cover 6-12 months of living expenses. This protects you from financial shocks and prevents dipping into retirement or education savings.

Investing for Retirement
Diversified Portfolio

Invest in a mix of equity, debt, and hybrid funds. This balances risk and returns, ensuring steady growth over time.

Equity Funds

Given your risk appetite and time horizon, equity funds can offer higher returns. They are suitable for long-term investments.

Debt Funds

Debt funds provide stability and are less volatile. They help preserve capital and provide steady income.

Hybrid Funds

Hybrid funds invest in both equity and debt, balancing growth and safety. They are ideal for medium to long-term goals.

Saving for Child’s Higher Education
Systematic Investment Plan (SIP)

Start a SIP in equity mutual funds dedicated to your daughter’s education. This ensures disciplined savings and benefits from rupee cost averaging.

Education-specific Plans

Consider child education plans offered by mutual funds. These are tailored for education needs and provide a mix of growth and safety.

Regular Monitoring and Rebalancing
Track Your Investments

Regularly review your investment portfolio. This ensures your investments are performing well and aligned with your goals.

Rebalance Annually

Rebalance your portfolio annually to maintain the desired asset allocation. This keeps your investments on track to meet your objectives.

Consulting a Certified Financial Planner
A Certified Financial Planner (CFP) can provide personalised advice. They help you create a tailored investment strategy and navigate financial challenges.

Tax Planning
Utilise Tax Benefits

Make use of tax-saving instruments under Section 80C and 80D. This reduces your taxable income and increases your savings.

Tax-efficient Investments

Invest in tax-efficient funds that offer better post-tax returns. Consult with your CFP for suitable options.

Insurance Coverage
Life Insurance

Ensure adequate life insurance coverage for both you and your husband. This secures your family's financial future in case of any unfortunate event.

Health Insurance

A comprehensive health insurance plan protects you from high medical costs. It preserves your savings for retirement and education.

Final Thoughts
Your dedication to securing your financial future is admirable. By following these steps, you can effectively manage your loans, save for your daughter’s education, and plan for a comfortable retirement. Stay disciplined and periodically review your financial plan to ensure you are on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 29, 2024

Asked by Anonymous - Aug 26, 2024Hindi

Money

I am 45 years old and I have FD: Rs. 80 Lacs, PPF: Rs. 30 Lacs, Mutual Funds: 8 Lacs, NPS: 15 Lacs and EPF: 25 lacs. My job situation beyond 50 is difficult. My current salary is 18 lacs p.a. I have two kids aged 13 and 10 and I have a flat on which there is no loan. Please suggest how to optimally save for retirement/Kids education 10 years away.

Ans: Evaluating Your Current Financial Situation
Sir, you are at a crucial stage of life where planning for retirement and your children's education becomes top priority. Your existing assets indicate that you have been diligent in saving and investing. Let’s assess your current financial status.

FDs: Rs 80 Lacs in Fixed Deposits shows that you prioritise safety. However, returns from FDs are generally low, barely beating inflation.

PPF: Rs 30 Lacs in PPF is a wise decision for tax-saving and long-term growth. However, PPF has a lock-in period and a cap on annual contributions.

Mutual Funds: Rs 8 Lacs in mutual funds indicates a start towards equity exposure, but the amount is relatively low.

NPS and EPF: Rs 15 Lacs in NPS and Rs 25 Lacs in EPF are strong pillars for retirement. Both are tax-efficient and provide long-term growth.

Flat with No Loan: Owning a flat without any loan is a significant achievement. It secures your living situation, freeing up more resources for investment.

Your current salary of Rs 18 Lacs per annum gives you room to invest further, but the concern about job stability post-50 requires strategic planning.

Assessing Retirement Goals
Retirement planning is essential, especially when you foresee uncertainties in your job situation beyond 50. You have 10 to 15 years to build a corpus that can sustain your lifestyle post-retirement.

Retirement Corpus: Based on your lifestyle and expenses, you need a corpus that can provide a steady income without depleting too quickly.

Inflation Consideration: Remember that inflation will erode the purchasing power of your retirement corpus. Your investments should grow faster than inflation.

Diversification: Diversify your portfolio to include a mix of equity, debt, and fixed income to balance risk and returns.

Children's Education Planning
Your children’s education is just a decade away. It’s essential to start investing more aggressively now to ensure you have enough funds when they need it.

Higher Education Costs: Education costs are rising, and you should plan for both tuition fees and living expenses.

Investment Horizon: Since you have 10 years, you can take on slightly higher risk to achieve better returns.

Systematic Investment: Regular investments through SIPs in mutual funds can help you build a substantial corpus for education.

Enhancing Mutual Fund Investments
Your current investment in mutual funds is Rs 8 Lacs, which is relatively low considering your goals. Increasing your exposure to equity can help you achieve higher growth.

Actively Managed Funds: These funds have the potential to outperform the market, especially in the long term. They can help you bridge the gap between your current corpus and future needs.

Diversified Portfolio: Invest in a mix of large-cap, mid-cap, and multi-cap funds to spread risk while capturing growth opportunities.

Regular Monitoring: Periodically review and rebalance your portfolio to stay aligned with your financial goals.

Reallocating Fixed Deposits
While FDs offer safety, they also provide lower returns. You might consider reallocating a portion of your FD holdings to higher-growth assets.

Equity Exposure: Shift some of your FD investments to equity mutual funds. This will help in increasing the overall returns on your investments.

Debt Funds: If you prefer safety, consider debt mutual funds. They provide better returns than FDs with relatively low risk.

Balanced Approach: Maintain a balance between safety and growth by investing in a combination of debt and equity.

Optimising PPF and NPS Contributions
Your PPF and NPS investments are strong, but there’s room to optimise them further.

PPF Contributions: Max out your PPF contributions each year. This will ensure you benefit fully from the tax savings and long-term compounding.

NPS Contributions: Continue contributing to NPS, especially for the additional tax benefits under Section 80CCD(1B). The NPS is a low-cost option that can provide a steady income post-retirement.

Tax Efficiency: Both PPF and NPS are tax-efficient, which means they will grow more effectively without the burden of taxes eating into your returns.

Building an Emergency Fund
Given the uncertainty about your job situation, having an emergency fund is crucial. This fund will ensure you have enough liquidity to cover unexpected expenses.

Liquidity: Keep this fund in liquid assets like savings accounts or liquid mutual funds. This ensures quick access to cash when needed.

Size of the Fund: Ideally, your emergency fund should cover 6 to 12 months of living expenses.

Replenish Regularly: If you ever use your emergency fund, make it a priority to replenish it as soon as possible.

Planning for Healthcare
Healthcare costs are rising, and planning for medical emergencies is crucial, especially as you approach retirement.

Health Insurance: Ensure you have adequate health insurance coverage for yourself and your family. This will protect your savings from getting depleted by medical expenses.

Critical Illness Cover: Consider adding a critical illness cover to your health insurance. This provides an additional layer of financial protection in case of severe health conditions.

Regular Health Check-ups: Regular check-ups can help in early detection of health issues, potentially saving you from higher costs later.

Final Insights
Sir, to secure your retirement and fund your children's education, a strategic reallocation of your existing assets is essential. Increasing your equity exposure through mutual funds, optimising your contributions to PPF and NPS, and setting up a robust emergency fund will set you on the right path.

Additionally, regular review and rebalancing of your portfolio will ensure that you stay on track to meet your financial goals. By making these adjustments now, you can confidently approach retirement and your children’s education with a solid financial foundation.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

Question by DASARI - May 23, 2025Hindi

Money

Hi Iam 30 Years old and I am earning 1.2 Lakh monthly. I had personal loan of 40 Lakhs including three different loans and paying EMI of amount 85,747/-. I have no other savings for now and I had daughter of three years old. Please let me know how can I start savings from my daughter's future.

Ans: You are just 30. You have time on your side.

Also, your willingness to secure your daughter’s future is very good.

Now, let us analyse your current financial picture and plan step-by-step.

Understanding Your Current Situation

You earn Rs. 1.2 lakh every month.

Your total EMIs are Rs. 85,747 across 3 personal loans.

You have no savings yet.

You have a 3-year-old daughter.

Your disposable income is only about Rs. 34,000 per month.

This leaves very little room to build savings or invest.

But with a practical approach, you can slowly build wealth.

First, Address the Personal Loan Burden

Personal loan interest is very high.

EMIs are taking 71% of your salary. This is risky.

Start by checking if you can consolidate or restructure.

Try to combine your 3 loans into 1 loan with lower EMI.

Approach your bank or NBFC for consolidation options.

You can also speak to your employer about salary advance loans.

These have lesser interest than personal loans.

Pay off highest-interest loan first. This is the snowball method.

If not possible, at least avoid any more loans till current ones end.

Avoid credit card EMIs or BNPL schemes for now.

High EMI load is the biggest block to saving and investing now.

Reducing this is your first step to freedom.

Track All Monthly Expenses Closely

Begin a monthly budget today.

Write down every rupee spent.

Divide your spending into needs, wants, and unnecessary.

Needs are rent, groceries, fees, EMI, etc.

Wants are eating out, movies, new mobile etc.

Unnecessary expenses are impulse buys, unused subscriptions.

Cut all unnecessary and reduce wants strictly.

Fix a limit for cash withdrawals weekly. Stick to it.

This tracking alone will save Rs. 5,000 to Rs. 8,000 monthly.

This saved amount will be your first tool to build savings.

Create a Basic Emergency Fund

You must create an emergency fund even with EMI pressure.

Start with Rs. 1,000 to Rs. 2,000 per month.

Put this in a separate savings account.

Do not link it to your UPI apps.

Target is to build Rs. 60,000 in the next 2 years.

This covers small medical or urgent expenses.

It also avoids more borrowing in future.

Emergency fund is your first financial safety wall.

Start Insurance – Only Term and Health

Buy a pure term insurance of Rs. 1 crore now.

It will cost about Rs. 700 to Rs. 800 monthly.

This protects your daughter if anything happens to you.

Avoid ULIP, LIC, money-back, endowment policies.

They mix insurance with investment and give low returns.

Also take a health insurance of Rs. 5 lakh for your family.

If employer provides, ensure it's enough.

Buy a separate cover if needed.

Do not wait till age or health issues increase the cost.

Insurance is a protection tool. It is not for investment.

Begin Monthly Savings for Your Daughter

Your daughter is 3 now. You have 14–15 years to plan.

Education costs are rising sharply every year.

You must start small but consistent.

Begin with Rs. 2,000 to Rs. 3,000 monthly now.

This can go to mutual funds through SIP route.

Use child’s name as folio holder and yourself as guardian.

Choose a diversified equity mutual fund.

Avoid direct mutual funds for now.

Direct funds need full research and monitoring.

You may miss scheme changes, exit loads or other important updates.

A certified mutual fund distributor with CFP skills gives better guidance.

Regular funds give access to this guidance.

That support is helpful in your current busy and debt-heavy life.

Don't chase small savings in expense ratios now.

Stay focused on growing wealth safely.

This early SIP will grow well in long term with compounding.

Avoid Index Funds and ETFs

Index funds look low-cost but have limits.

They follow index blindly, even during market crashes.

No protection in falling market or poor sectors.

No scope for fund manager skills or sector shifts.

Many index stocks underperform but remain in fund due to weight.

ETFs need Demat account and market knowledge.

They need timing to buy and sell at right prices.

That makes them risky for beginners like you.

Actively managed funds offer better flexibility and safety.

You get fund manager expertise to handle volatility.

Over 10-15 years, they outperform index in many cases.

Especially for child’s goal, safety and returns both matter.

Stay with proven and guided funds. Not blind index following.

Slowly Increase SIP Amount Each Year

As you close one personal loan, use that EMI for SIP.

Increase SIP by Rs. 1,000 to Rs. 2,000 every 6 months.

Try to take it to Rs. 10,000 monthly in 3 years.

Use step-up SIP facility from AMC or advisor.

This will not feel like a burden.

But grows fund corpus significantly.

Your consistency is more powerful than amount in long term.

Avoid Gold for Investment Purposes

Digital or physical gold gives poor returns over long term.

They don’t beat inflation consistently.

They don’t generate any income like mutual funds.

Only use gold for family usage or gifting.

For your daughter’s future, growth assets like equity mutual funds are better.

Stick to productive and growth-oriented options.

Plan for Education and Marriage Separately

Do not mix both goals into one plan.

Education is a non-negotiable priority.

Marriage is flexible and can be simpler if needed.

Start one SIP for education goal only.

Plan for Rs. 30–50 lakhs needed in 15 years.

Later, if surplus builds, start a second SIP for marriage.

Don’t withdraw from education SIP for marriage.

Clear goal tagging brings better discipline and tracking.

Avoid Taking New Loans for Saving or Investing

Do not take gold loan or top-up loan to invest.

That adds interest burden and market risk.

Investment should be from surplus. Not from borrowed money.

Always live below your means.

Discipline builds wealth. Not risk or shortcuts.

Review Your Progress Every 6 Months

Keep checking if savings, insurance, debt and goals are aligned.

If income increases, adjust SIPs.

If expenses increase, try not to reduce SIP.

Talk to a certified financial planner for regular guidance.

Keep family involved. Especially spouse.

Together you can keep discipline strong.

Small consistent actions bring big results in long term.

Finally

You are young. You have time and energy.

You are focused on your daughter’s future. That is great.

But debt is your biggest challenge now.

Reduce EMIs over time. Avoid new loans.

Build emergency fund and insurance cover first.

Start SIP in regular mutual funds with support.

Avoid direct and index funds. They need research and timing.

Stay invested for 15 years. Don’t panic in market falls.

Each year review and step up your SIP.

This long-term plan will give your daughter financial freedom.

Stay patient and focused. Results will surely come.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 29, 2025

Question by KULDEEP - May 25, 2025

Money

I am 35 year old and I have income of 1.2 lac. I have 42 lacs in pf and 16 lacs in NPS. I want to save for higher education of two kids and their marriage. One 5 year old and other two year old girl child. I have started investing in Sukhanya Samridhi for girl child 1.5 lacs per year. I have one SIP of 10 thousand. Kindly guide how to plan to achieve goals.

Ans: Current Financial Overview
You are 35 years old with a monthly income of Rs. 1.2 lakh.

Your provident fund balance is Rs. 42 lakhs, which is a strong retirement corpus.

You hold Rs. 16 lakhs in National Pension Scheme (NPS), which provides good tax benefits and long-term growth.

You have started investing Rs. 1.5 lakhs annually in a girl child savings scheme for your daughters.

Currently, you maintain a monthly SIP of Rs. 10,000 in mutual funds.

You have two young daughters, aged 5 and 2, for whose higher education and marriage planning is a priority.

Appreciating Your Financial Habits
Holding a strong PF and NPS corpus shows disciplined long-term savings.

Investing regularly in a dedicated scheme for girl child’s future is a good move.

Starting mutual fund SIP at Rs. 10,000 is a positive step towards wealth creation.

You clearly have a focus on important financial goals for children and retirement.

Setting Clear Financial Goals
Higher education for both children typically begins around age 17-18.

Marriage expenses usually arise between ages 23-30 for your daughters.

These goals require significant corpus accumulation over 12-15 years for education.

Marriage planning needs corpus buildup over 18-25 years.

Both goals require inflation-adjusted planning to meet future costs.

Assessing Your Current Investment Strategy
Provident Fund and NPS are retirement-focused and not ideal for child goals.

Girl child savings scheme offers safety and tax benefits but moderate returns.

Your Rs. 10,000 SIP, if actively managed, can grow to support education and marriage goals.

A single SIP may be insufficient given the scale of future needs for two children.

Consider diversifying investments across equity and debt to balance risk and return.

Optimizing Child Education Planning
Prioritize increasing your monthly SIPs gradually to build a bigger corpus.

Invest through actively managed equity mutual funds for higher growth potential.

Equity mutual funds outperform index funds in the long run due to active management.

Avoid direct mutual fund investments without guidance; professional help is vital.

Systematic Investment Plans through a Certified Financial Planner ensure goal alignment.

Complement equity investments with safer debt funds for stability as goals near.

Planning for Child Marriage Corpus
Marriage goals are long term and require disciplined accumulation over 15-20 years.

Begin a separate investment plan with a mix of equity and debt funds for this goal.

Increase contributions annually with salary growth to meet inflation-adjusted needs.

Use regular reviews to adjust allocations and avoid last-minute financial stress.

Managing Risk and Tax Efficiency
Maintain adequate term insurance to protect family financial security.

Health insurance is equally important to avoid draining investments during emergencies.

Utilize tax-saving instruments wisely, but don’t compromise on return potential.

NPS provides tax benefits but is locked till retirement; not suitable for children’s goals.

Balance tax saving with liquidity and growth needs for children’s education and marriage.

Reassessing Existing Policies
Review if you have any LIC, ULIP, or insurance cum investment plans.

These often have high costs and lower returns compared to mutual funds.

If present, consider surrendering and reallocating funds to mutual funds via MFDs with CFP guidance.

Professional advice ensures smooth transition without loss of benefits or penalties.

Income and Expense Management
Track monthly expenses and aim to increase savings rate with income growth.

Avoid lifestyle inflation that reduces available investment capital.

Create a contingency fund to manage unforeseen expenses without disrupting investments.

Use bonuses and increments for boosting SIPs or special investments.

Professional Portfolio Monitoring
Periodic portfolio reviews are essential to keep investments aligned with goals.

Rebalance equity and debt allocation based on age of children and market conditions.

Certified Financial Planners provide ongoing advice and timely adjustments.

Active fund management protects against market downturns and enhances returns.

Education and Marriage Cost Inflation
Factor in education cost inflation which can be 10% or more annually.

Marriage expenses also rise with inflation and changing social standards.

Start early and invest aggressively in growth assets to beat inflation.

Delay in investing means higher monthly savings later, which can be difficult.

Long-term Retirement Considerations
Your PF and NPS corpus are substantial and well positioned for retirement.

Continue regular contributions and monitor asset allocation for retirement corpus.

Retirement corpus can also serve as fallback for children’s goals if needed.

Practical Investment Steps for You
Increase SIP amount from Rs. 10,000 gradually as income grows.

Open a separate SIP for child marriage planning with actively managed funds.

Maintain existing girl child savings but avoid overdependence due to limited returns.

Consider professional help for portfolio construction, risk assessment, and tax planning.

Review insurance needs and surrender expensive insurance cum investment policies if any.

Ensure emergency fund of 6 months to protect investments from premature withdrawals.

Final Insights
Your current savings and investments provide a solid foundation for goals.

Active and diversified investments are key to beating inflation and meeting costs.

Professional guidance ensures disciplined investment, tax efficiency, and risk control.

Start with gradual increase in SIPs and maintain separate goals-based funds.

Review and adjust your financial plan yearly or as life events occur.

Focus on children’s future without compromising retirement security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Latest Questions

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi

Career

Hello sir, While filling the JEE registration form, I had mistakenly added Mr. and Mrs. prefixes at my parent's name respectively. Their names are without prefixes in my matriculation certificates and Aadhaar card. I have been advised to make two affidavits stating the prefix discrepancy for the JOSAA Counselling. Since the discrepancy is with two names, Is it big enough to get my admission rejected? If not, with which documents should i submit the affidavits along with so that a query is not raised during the JOSAA counselling ?

Ans: Hi
Don't worry. This won't get your application rejected.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 18, 2025Hindi

Career

Sir I passed class 12th from Maharashtra board (PCMB + English) I scored 48 in chemistry 52 in physics and 46 in biology I have a marksheet from Nios board which consists only one subject biology in which I scored 58 marks , My question is am I eligible for admission in mbbs ( govt college ) if I score good in Neet 2026 ??? Can I combine state board (PCB)marksheet + Nios ( biology marksheet) to fullfill 50% PCB aggregate score ?? I am from general Ews category please resolve my query

Ans: I recommend appearing for all 5 subjects through NIOS

Asked on - Dec 08, 2025 | Answered on Dec 08, 2025

Am I ineligible for mbbs?? Will they reject me?

Ans: Might be as you gave PCMB already from MS board. There is not concrete answer in counselling brochure.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 14, 2025Hindi

Career

My son is preparing for JEE. He wants to pursue Mathematics in the future.Just wanted to know, which are the acclaimed universities which are good for research in the field of Maths , which he can aim for?, and can resaerch also be a career option in our country?. Thank you.

Ans: Hello
IITs are the top institutions wherein you can take Applied Maths. Apart from that Indian Statistical Institute, Chennai Mathematical Institute, IISc Bangalore, Tata Institute of Fundamental Research, IISERs are the other good options in our country.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Question by Amit - Nov 21, 2025Hindi

Career

Sir mera ek doubt hai ki maine class 12th 2024 me diya hai bihar board se aur jee mains first time appear in 2025 bit jee advanced ke liye qulify nahi kar paye to mai jee advanced 2026 ke liye ellible honge aur agar mai nios se dubara 12th de kar jee mains ke form me apperaing fill kar de to kya tab jee advanced 2026 ke liye ellible honge plese sir maine bahut logo se pucha hai lekin koi kabhi koi answer deta hai aur 1 hours baad koi aur answers mai ummeed karta hu ki aap mujhe honest answer denge

Ans: Hello Amit
Aap JEE-Advanced 2026 nahi de paoge.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Question by barnalimahata - Nov 22, 2025Hindi

Career

I have state government obc from government of West Bengal, my community is also listed in central obc list so do I need to make obc issued by central government for reservation in IIT

Ans: Hi
Yes, you will need to make obc issued by the central government for reservation in IIT/NIT/IIITs

Anu Krishna |1746 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 08, 2025

Question by Shubha - Dec 07, 2025Hindi

Relationship

Have read some of your answers and I am appalled as to how biased you seem. To most daughters in law you have suggested basically to shut up and best abuse for ‘family peace’ whereas when a man complains of his wife being close to her mother you go like ‘oh what a woman’. Looking at your profile one expects you would teach your clients assertiveness, self respect and fairness.

Ans: Dear Shubha,
Thank you for looking up my responses.
A while back a man accused me of being biased towards the woman and you are accusing me of being biased towards a man; there's no pleasing everyone, yeah?
Whatever you have gleaned to come to a conclusion of 'oh what a woman' and you saying that I am asking people to shut up, is something you may have to reflect upon.
A small guiding tip for you: We read and understand based on what we WANT to read and understand. Without throwing labels here, I can say that a crusader of women's rights will always start with the premise of 'everything is against women' and operate from there; you get the drift? Will help you reflect deeper!
My responses have and will always be objective and will continue to guide people to a better life.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi

Money

Hi i am 40M. would request your help to understand what should be the corpus required for retirement as i want to get retired in next 3-5yrs. currently my take home is 2.3L monthly & my wife also works but leaving the job in next 2-3 months. we have a daughter 10yrs, currently i stay on rent and total monthly expense is 1.1L month. once i will retire we will shift in our own parental flat, where hopefully there will be no rent. current Investments 1. 50L in REC bonds getting matured in 2029 2. 42L in stocks 3. 17L in MF 4. 16L FD 5. 15L in PPF 6. 1.3L SIP monthly i do My Wife Investments 1. 30L corpus 2. flat with current value 40L and we get rental of 10K monthly. Please guide what should be the retirement corpus required combined to retire, assuming i need 75L for my daughter post grad and marriage and we would be requiring 75K monthly for our expenses after retiring

Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

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

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

Samraat Jadhav |2499 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 08, 2025

Question by Debasis - Dec 06, 2025Hindi

Money

I sold at Rs 3500000.00 lakhs

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Question by Saket - Dec 07, 2025Hindi

Money

Hello my name is saket, I monthly salary is 43k and my saving is zero. My Rent is 15 k and 10 k i send to my parents. How can i save money and investments.

Ans: 1. Your Current Monthly Numbers

Salary: Rs 43,000

Rent: Rs 15,000

Support to parents: Rs 10,000

Left with: Rs 18,000 for food, travel, bills, and savings

You have very little room, but saving is still possible if done smartly.

2. First Step: Build a Small Emergency Buffer

You must build Rs 10,000 to Rs 20,000 emergency money.
This protects you from taking loans for small issues.

How to build it:

Save Rs 3,000 to Rs 5,000 every month in a simple bank savings account

Do this for the next few months

Don’t touch it unless truly needed

3. Create a Mini Budget (Very Simple One)

Try this split from the remaining Rs 18,000:

Daily living (food + transport): Rs 10,000 – 11,000

Personal expenses (phone, internet, basics): Rs 3,000 – 4,000

Savings + investments: Rs 3,000 – 5,000

If this feels difficult, reduce food/transport costs by small adjustments.

4. Where to Invest Once You Have Emergency Money

(For minors: This is general education. For actual investing, get guidance from a trusted adult or family member.)

After you build emergency money, start small monthly investing.

You can begin with:

Rs 1,000 to Rs 2,000 SIP in a simple, diversified equity fund

Increase the SIP whenever salary increases or expenses reduce

Avoid complicated products.
Keep it simple.
Focus on consistency.

5. Easy Practical Ways to Increase Saving

These small moves help a lot:

Avoid food delivery

Use public transport as much as possible

Reduce subscriptions you don’t use

Fix a daily expense limit

Keep a separate bank account only for savings

Even Rs 200 saved daily = Rs 6,000 monthly.

6. Increase Income Slowly

Try small income boosters:

Weekend tutoring

Freelancing

Part-time projects

Selling old gadgets

Learning new skills for future salary growth

Even Rs 3,000 extra income changes your savings life.

7. Build the Habit First

The amount doesn’t matter in the beginning.
The habit matters more.

Even saving Rs 500 every month is better than zero.
Once salary grows, you will already know how to save.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Radheshyam Zanwar |6737 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 08, 2025

Question by Dipasha - Dec 07, 2025Hindi

Career

Hello sir.. Mera class 12th main PCB tha but biology mai repeat aya hain aur english, physics, chemistry mai pass hu.. If mai biology NIOS se exam dungi toh kya mai NEET ke liye eligible ho jaungi?? Please answer

Ans: Your question and follow-up question are already answered. Please copy and paste the following link in your browser to read it - https://gurus.rediff.com/question/qdtl/career/neet-aspirant-meri-class-12-m-physics-m-repeat-thi/5248200

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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