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Ramalingam Kalirajan |10872 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jun 27, 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
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 26, 2025Hindi
I am 61 years and gets a monthly pension of 44,000 which I invest in MF through SIP. I get monthly interest of 25,000 from 34 lacs which I contribute as my share towards total household expenditure of 50 thousand, since my wife is also retired and draws around the same amount of pension. I have invested around 30 lacs in MF through SIP and as per yesterday's nav is 52 lacs. My wife has 52 lacs in fd and nav of 30 lacs in MF. We have our own flat and have a son who got married recently and lives in another city. My wife invests 25 lacs in monthly sip. Can we continue with our sip or should go for fd. Our risk appetite is good.
Ans: At 61, with a pension-backed lifestyle and a strong mutual fund portfolio, you and your wife are in a better financial condition than many retirees. You have been investing smartly and consistently. This shows your discipline and patience. Let us now take a detailed look at your situation and provide a 360-degree strategy to help you make informed decisions on whether to continue with SIPs or shift to fixed deposits.
Overview of Your Current Financial Position
Let us first look at your numbers clearly:
You are 61 and retired. You get Rs. 44,000 as monthly pension.
You invest this pension into SIPs in mutual funds.
You have Rs. 34 lakh in fixed deposits. You get Rs. 25,000 monthly from it.
You contribute Rs. 25,000 to the monthly household cost of Rs. 50,000.
Your wife is also retired and receives about the same pension.
She has Rs. 52 lakh in fixed deposit and Rs. 30 lakh invested in mutual funds.
You have invested Rs. 30 lakh in mutual funds which have grown to Rs. 52 lakh.
Your wife is investing Rs. 25 lakh through SIPs now.
You own your flat and have one married son living in another city.
This is a financially balanced situation. Now let us assess each part to offer deeper insights.
1. Monthly Cash Flow – Sustainable and Comfortable
Together, you and your wife receive around Rs. 88,000 per month as pension.
You also get Rs. 25,000 monthly as FD interest.
This makes your total monthly income around Rs. 1.13 lakh.
Your household expense is only Rs. 50,000. That leaves a surplus of over Rs. 60,000.
You are not dependent on your mutual fund corpus for monthly expenses. This is a very strong position for any retiree.
2. Fixed Deposit Income – Reliable but Low Growth
Your total FD value (you + wife) is Rs. 86 lakh.
You both get monthly income from it.
This is good for safety and liquidity.
But FD interest is fully taxable and may fall in future.
FD returns rarely beat inflation over long term.
You can keep some FD for stability, but not everything.
FD should be used only for emergency buffer and short-term goals.
3. Mutual Fund Corpus – Impressive Growth and Wealth Creator
Your mutual fund investment of Rs. 30 lakh has grown to Rs. 52 lakh.
That is a strong capital appreciation.
Your wife has Rs. 30 lakh in mutual funds.
Together, your mutual fund corpus is Rs. 82 lakh.
This shows you have trusted mutual funds and stayed invested.
This decision has paid off well, and you should continue.
4. Ongoing SIPs – Excellent Habit, Keep It Going
You invest your entire pension in SIPs.
Your wife is investing Rs. 25 lakh through SIPs.
These SIPs are creating long-term wealth.
Mutual fund SIPs are flexible, tax efficient and help in rupee cost averaging.
You should continue the SIPs without stopping them.
These SIPs will give you more financial freedom later.
5. Should You Shift to FD from SIP? No, Here’s Why
SIPs are giving higher returns than FDs over 5–10 years.
FD returns are taxable fully and get lower in real value due to inflation.
SIPs in equity mutual funds are taxed efficiently.
LTCG above Rs. 1.25 lakh is taxed at only 12.5%.
STCG is taxed at 20%.
SIPs offer better inflation protection and long-term growth.
Since your risk appetite is good, and you do not depend on MF money for expenses, you can take market ups and downs calmly.
Stopping SIPs now will reduce future wealth.
Stay invested. Do not stop or pause the SIPs.
6. Use Mutual Funds for Future Monthly Income
After 65 or 70, you can start Systematic Withdrawal Plans (SWP).
This will create monthly income from mutual fund corpus.
SIP grows wealth. SWP gives regular income later.
This will help reduce FD dependence later.
Use SWP only after your capital grows more.
For now, keep investing. Later, enjoy the income.
7. Asset Allocation – Review Regularly, Not Reactively
You have almost Rs. 1.68 crore between you both.
About 48% is in mutual funds. Around 52% is in fixed deposits.
This is a balanced allocation for your stage.
But over the next few years, gradually increase mutual fund share to 60%.
Keep 30% in fixed deposit.
Remaining 10% can be in liquid or ultra-short funds for short-term needs.
Do not over-allocate to FDs even in retirement.
8. Emergency Fund – Always Keep a Separate Pool
Keep Rs. 4–6 lakh each in a separate emergency fund.
Use liquid funds or short-term FDs for this.
Do not disturb long-term mutual funds for sudden needs.
This keeps your investments stable.
Safety pool is essential for peace of mind.
9. No Need for Real Estate or Gold
You already own a flat.
You do not need to invest more in real estate.
Real estate is illiquid, costly, and hard to manage.
Also, do not over-invest in gold.
Keep only small amount for personal use.
Keep your capital in growth and income-generating assets.
10. Avoid Index Funds and Direct Funds
Do not invest in index funds now.
Index funds invest in all stocks, good and bad.
They give no active selection or risk management.
In falling markets, they fall as much as the index.
Actively managed funds are better in volatile times.
Fund managers help select good stocks, avoid poor ones.
Also avoid direct mutual funds:
Direct funds have no advisor support.
No one guides you on when to redeem or switch.
Emotionally hard to manage during market corrections.
Regular plans through a Mutual Fund Distributor with CFP give full support.
Keep investing through regular plans only.
11. Estate Planning – Act Now, Not Later
You have significant wealth. Now is the right time for estate planning.
Write a Will each.
Include details of mutual fund holdings, FDs, and your flat.
Mention who gets what.
Register the Will to avoid legal trouble later.
Also, ensure nominee names are added in all financial assets.
Nominee is not the legal heir. Only Will decides distribution.
Plan this early. It will protect your family from confusion later.
12. Tax Planning – Keep Things Clean and Simple
Keep a track of all capital gains in mutual funds.
Do not redeem unless needed, or for rebalancing.
Redeem wisely to avoid higher tax.
Use joint names in FDs and mutual funds for convenience.
Keep all investments linked to PAN and updated KYC.
Keep your documentation clear and updated.
13. Retirement Security – You Are Already There
Your expenses are less than income.
Your investments are growing well.
You do not need to depend on your son financially.
You have enough funds for future.
But keep tracking expenses. Inflation can rise slowly over years.
14. Health Insurance – Important to Recheck
Please make sure you and your wife have a good health insurance cover.
Minimum cover should be Rs. 10–15 lakh.
Use a super top-up plan if needed.
Keep health policy active till the end of life.
Medical costs can rise suddenly.
15. Role of Certified Financial Planner – Don’t Skip It
You both are managing well.
But engaging a Certified Financial Planner can help optimise further.
A CFP helps with:
Goal mapping
Asset rebalancing
Tax-efficient withdrawals
Portfolio review
Succession planning
CFP offers guidance that is personal, not generic.
They help avoid emotional or wrong decisions in future.
Finally
You are in a very strong financial position today. Your lifestyle is secure. Your investments are growing. Your habits are disciplined. This is a clear example of smart retirement planning.
There is no need to move to FD from SIP. You can continue SIPs as long as you are financially comfortable and mentally relaxed. SIPs are building your financial legacy and keeping you ahead of inflation.
What you need now is:
Continue SIPs in regular mutual funds.
Slowly shift from growth to income-oriented strategies (like SWP) after a few years.
Rebalance asset allocation every 1–2 years.
Keep insurance updated.
Complete estate planning soon.
Your journey so far has been consistent and thoughtful. Keep going.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Overview of Your Current Financial Position
Let us first look at your numbers clearly:
You are 61 and retired. You get Rs. 44,000 as monthly pension.
You invest this pension into SIPs in mutual funds.
You have Rs. 34 lakh in fixed deposits. You get Rs. 25,000 monthly from it.
You contribute Rs. 25,000 to the monthly household cost of Rs. 50,000.
Your wife is also retired and receives about the same pension.
She has Rs. 52 lakh in fixed deposit and Rs. 30 lakh invested in mutual funds.
You have invested Rs. 30 lakh in mutual funds which have grown to Rs. 52 lakh.
Your wife is investing Rs. 25 lakh through SIPs now.
You own your flat and have one married son living in another city.
This is a financially balanced situation. Now let us assess each part to offer deeper insights.
1. Monthly Cash Flow – Sustainable and Comfortable
Together, you and your wife receive around Rs. 88,000 per month as pension.
You also get Rs. 25,000 monthly as FD interest.
This makes your total monthly income around Rs. 1.13 lakh.
Your household expense is only Rs. 50,000. That leaves a surplus of over Rs. 60,000.
You are not dependent on your mutual fund corpus for monthly expenses. This is a very strong position for any retiree.
2. Fixed Deposit Income – Reliable but Low Growth
Your total FD value (you + wife) is Rs. 86 lakh.
You both get monthly income from it.
This is good for safety and liquidity.
But FD interest is fully taxable and may fall in future.
FD returns rarely beat inflation over long term.
You can keep some FD for stability, but not everything.
FD should be used only for emergency buffer and short-term goals.
3. Mutual Fund Corpus – Impressive Growth and Wealth Creator
Your mutual fund investment of Rs. 30 lakh has grown to Rs. 52 lakh.
That is a strong capital appreciation.
Your wife has Rs. 30 lakh in mutual funds.
Together, your mutual fund corpus is Rs. 82 lakh.
This shows you have trusted mutual funds and stayed invested.
This decision has paid off well, and you should continue.
4. Ongoing SIPs – Excellent Habit, Keep It Going
You invest your entire pension in SIPs.
Your wife is investing Rs. 25 lakh through SIPs.
These SIPs are creating long-term wealth.
Mutual fund SIPs are flexible, tax efficient and help in rupee cost averaging.
You should continue the SIPs without stopping them.
These SIPs will give you more financial freedom later.
5. Should You Shift to FD from SIP? No, Here’s Why
SIPs are giving higher returns than FDs over 5–10 years.
FD returns are taxable fully and get lower in real value due to inflation.
SIPs in equity mutual funds are taxed efficiently.
LTCG above Rs. 1.25 lakh is taxed at only 12.5%.
STCG is taxed at 20%.
SIPs offer better inflation protection and long-term growth.
Since your risk appetite is good, and you do not depend on MF money for expenses, you can take market ups and downs calmly.
Stopping SIPs now will reduce future wealth.
Stay invested. Do not stop or pause the SIPs.
6. Use Mutual Funds for Future Monthly Income
After 65 or 70, you can start Systematic Withdrawal Plans (SWP).
This will create monthly income from mutual fund corpus.
SIP grows wealth. SWP gives regular income later.
This will help reduce FD dependence later.
Use SWP only after your capital grows more.
For now, keep investing. Later, enjoy the income.
7. Asset Allocation – Review Regularly, Not Reactively
You have almost Rs. 1.68 crore between you both.
About 48% is in mutual funds. Around 52% is in fixed deposits.
This is a balanced allocation for your stage.
But over the next few years, gradually increase mutual fund share to 60%.
Keep 30% in fixed deposit.
Remaining 10% can be in liquid or ultra-short funds for short-term needs.
Do not over-allocate to FDs even in retirement.
8. Emergency Fund – Always Keep a Separate Pool
Keep Rs. 4–6 lakh each in a separate emergency fund.
Use liquid funds or short-term FDs for this.
Do not disturb long-term mutual funds for sudden needs.
This keeps your investments stable.
Safety pool is essential for peace of mind.
9. No Need for Real Estate or Gold
You already own a flat.
You do not need to invest more in real estate.
Real estate is illiquid, costly, and hard to manage.
Also, do not over-invest in gold.
Keep only small amount for personal use.
Keep your capital in growth and income-generating assets.
10. Avoid Index Funds and Direct Funds
Do not invest in index funds now.
Index funds invest in all stocks, good and bad.
They give no active selection or risk management.
In falling markets, they fall as much as the index.
Actively managed funds are better in volatile times.
Fund managers help select good stocks, avoid poor ones.
Also avoid direct mutual funds:
Direct funds have no advisor support.
No one guides you on when to redeem or switch.
Emotionally hard to manage during market corrections.
Regular plans through a Mutual Fund Distributor with CFP give full support.
Keep investing through regular plans only.
11. Estate Planning – Act Now, Not Later
You have significant wealth. Now is the right time for estate planning.
Write a Will each.
Include details of mutual fund holdings, FDs, and your flat.
Mention who gets what.
Register the Will to avoid legal trouble later.
Also, ensure nominee names are added in all financial assets.
Nominee is not the legal heir. Only Will decides distribution.
Plan this early. It will protect your family from confusion later.
12. Tax Planning – Keep Things Clean and Simple
Keep a track of all capital gains in mutual funds.
Do not redeem unless needed, or for rebalancing.
Redeem wisely to avoid higher tax.
Use joint names in FDs and mutual funds for convenience.
Keep all investments linked to PAN and updated KYC.
Keep your documentation clear and updated.
13. Retirement Security – You Are Already There
Your expenses are less than income.
Your investments are growing well.
You do not need to depend on your son financially.
You have enough funds for future.
But keep tracking expenses. Inflation can rise slowly over years.
14. Health Insurance – Important to Recheck
Please make sure you and your wife have a good health insurance cover.
Minimum cover should be Rs. 10–15 lakh.
Use a super top-up plan if needed.
Keep health policy active till the end of life.
Medical costs can rise suddenly.
15. Role of Certified Financial Planner – Don’t Skip It
You both are managing well.
But engaging a Certified Financial Planner can help optimise further.
A CFP helps with:
Goal mapping
Asset rebalancing
Tax-efficient withdrawals
Portfolio review
Succession planning
CFP offers guidance that is personal, not generic.
They help avoid emotional or wrong decisions in future.
Finally
You are in a very strong financial position today. Your lifestyle is secure. Your investments are growing. Your habits are disciplined. This is a clear example of smart retirement planning.
There is no need to move to FD from SIP. You can continue SIPs as long as you are financially comfortable and mentally relaxed. SIPs are building your financial legacy and keeping you ahead of inflation.
What you need now is:
Continue SIPs in regular mutual funds.
Slowly shift from growth to income-oriented strategies (like SWP) after a few years.
Rebalance asset allocation every 1–2 years.
Keep insurance updated.
Complete estate planning soon.
Your journey so far has been consistent and thoughtful. Keep going.
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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