Dear Sir, My son is in 7th grade and I want to save 15 lakhs when he completes his 12th grade for his higher education. Pls advise best investment options for this. How much should I save every month and in which funds. Regards

Ans: Hello Prashant, I understand your goal is for child education with the time horizon of minimum 5 years. Taking all factors into consideration, I would suggest you invest approximately 17000 monthly in the following schemes in order to achieve your goal:

• Kotak Bluechip Fund -- 6,000.00
• PGIM India Flexicap Fund -- 5,000.00
• Canara Robeco Emerging Equities Fund -- 6,000.00
• Total: 17,000.00

Ans: Hi Value Investor. Thanks for discussing your requirements and future goals. For the goal of 7-8 Lakh., you can easily start sip in mf of around Rs.15000 in categories like large & midcap, Multicap , Mid cap and Balanced Advantage Funds etc. Starting with Rs.15000 on a monthly basis can help you achieve the Child Education goal.

Ans: It is difficult to give my opinion on this since I have no idea of what is the likely time horizon of your investment.

If you wish to send him within next 1-2 years, then probably a Recurring Deposit (RD) in a bank or a SIP in a debt fund is right way to invest. If the time horizon is longer, then SIP in a Debt fund, Hybrid Fund or an equity fund would be better, more tax efficient and more flexible. Please consult a financial advisor if you feel you need professional help for this.

Ans: Your monthly income is Rs. 25,000, which gives you Rs. 3 lakhs per year.

Your monthly expenses are Rs. 16,000, leaving a monthly surplus of Rs. 9,000.

You have no savings or investments at present.

You live with your wife and son in a rented house.

You have a term insurance cover of Rs. 50 lakhs.

You have a mediclaim policy of Rs. 12 lakhs.

You want to save for your son’s education and your future.

Key Challenges to Address
Limited savings despite a positive cash flow.

No investments currently, which delays wealth creation.

Need to balance short-term and long-term financial goals.

Dependence on a single income source.

Inflation will reduce the value of future savings.

No retirement corpus built yet.

Strengthening Your Financial Foundation
Start by setting aside at least Rs. 50,000 as an emergency fund.

Keep this in a high-liquidity investment like a savings account or liquid fund.

Avoid taking unnecessary loans or debt to manage cash flow.

Continue paying your rent on time, but try to negotiate for lower rent if possible.

Avoid spending on non-essential items to increase savings.

Enhancing Your Insurance Coverage
Your term insurance of Rs. 50 lakhs is good.

Consider increasing coverage as your financial responsibilities grow.

Your Rs. 12 lakh mediclaim is sufficient for now.

Ensure it covers your family members adequately.

Keep reviewing your policy benefits periodically.

Investing for Your Son’s Education
Estimate the future cost of your son's education based on inflation.

Invest a fixed amount every month towards this goal.

Choose actively managed mutual funds through a Certified Financial Planner.

Invest in a combination of large-cap, mid-cap, and flexi-cap funds.

Avoid index funds as they offer average returns and lack active management.

Increase SIP contributions as your income grows.

Saving for Your Future Needs
Start investing for long-term financial independence.

Allocate funds to equity-based investments for wealth creation.

SIP in actively managed mutual funds is the best option.

Increase investments whenever you get salary hikes or bonuses.

Keep your money growing instead of leaving it idle in a savings account.

Avoid investment-cum-insurance policies as they offer poor returns.

Managing Risks and Unexpected Situations
Keep your emergency fund accessible at all times.

Avoid withdrawing from long-term investments for short-term needs.

Always have a backup income plan in case of job loss.

Upskill and improve your career prospects to increase income.

Ensure your spouse is financially aware of your investments.

Planning for Retirement Early
You should start planning for retirement now.

The sooner you invest, the less you need to save later.

Invest aggressively in equity-based mutual funds initially.

As you approach retirement, shift some funds to debt instruments.

Keep reinvesting returns to generate compounding growth.

Tax Planning for Maximum Savings
Invest in tax-saving instruments under Section 80C.

Choose ELSS funds for better returns and tax benefits.

Take advantage of home rent deduction under Section 10(13A) if applicable.

Use deductions for medical insurance under Section 80D.

File taxes on time to avoid penalties and unnecessary stress.

Finally
Your financial situation has potential for growth.

Start saving and investing immediately.

Plan for both short-term and long-term needs.

Stay disciplined and review investments regularly.

Seek advice from a Certified Financial Planner for personalised strategies.

Secure your family's future by making smart financial decisions today.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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