Sir, Is it advisable to invest in multi asset fund? I would prefer to invest in icici prudential or Aditya Birla Sun Life multi asset fund. Is there any asset fund which has gold oil(petrol) equity in its fund. Is it advisable to invest in lump sum or systematic investment plan? Expect clear direction from you. I am ready to invest lump sum of rs. one lakh or RS.10000 pm.inelss. I would like to create a corpus for my grand daughter. She already has PPF& SUKANYA a/c in her name since 2018 investing one lakh fifty thousand rupees in each account. Kindly advise proper strategy for future education and marriage. Your's sincerely V G. Nadig.

Ans: To create a corpus of 5 to 6 crs in 20 years you would be required to invest Rs 50000 per month for 20 years

Schemes that may be considered are as under in equal proportion;

-  Samco Flexi Cap Fund - Growth

- Axis Esg Equity Fund Regular Growth

- Uti Flexi Cap Fund – growth

- Hdfc Index Fund - Sensex Plan -Growth

To beat FD, you may consider Short term debt funds considering rising interest rate scenario are:

- Aditya Birla Sun Life Short Term Fund - Growth

- L&T Short Term Bond Fund - Growth

Ans: Given your age, retirement, and the financial responsibilities you mentioned, here's a suggested investment plan:

Senior Citizens Savings Scheme (SCSS):
Investing 30 Lakh in SCSS is a good choice as it offers a guaranteed interest rate and is specifically designed for senior citizens. The current interest rate is higher than most fixed deposit rates, and the tenure is 5 years, which aligns well with your retirement planning.
Monthly Income Scheme (MIS):
Allocating 9 Lakh to the MIS at the Post Office can provide you with a steady monthly income. The interest rate is slightly lower than SCSS, but it provides liquidity as the tenure is shorter.
Bank Fixed Deposits for Children:
Investing 5 Lakh each in Bank FDs in the name of your daughter and son is a safe and straightforward option. Ensure the FDs are in their names to avail tax benefits and potentially better interest rates for them.
Pension Scheme:
Investing 15 Lakh to top-up your Pension Scheme to make the corpus 50 Lakh is a wise move. It will increase your monthly pension to around 29 Thousand, providing you with a regular income stream post-retirement.
Additional Suggestions:

Emergency Fund:
Set aside a portion of your corpus as an emergency fund. This fund should be easily accessible and cover at least 6-12 months of your living expenses.
Health Insurance:
As you're nearing retirement, consider purchasing or upgrading your health insurance to cover any medical emergencies.
Inflation:
Keep in mind the impact of inflation on your expenses and plan your investments accordingly to ensure your corpus grows over time.
Review and Rebalance:
Regularly review your investment portfolio and make necessary adjustments based on market conditions, your financial needs, and goals.
Lastly, it would be beneficial to consult with a certified financial planner or advisor to tailor this plan to your specific needs and ensure a comfortable retirement for you and financial security for your children's education and future.

Ans: Congratulations on taking proactive steps towards securing your daughter's future and planning for your retirement. Let's evaluate your current financial situation and chart a course of action to achieve your goals.

Considering your existing investments in PPF, LIC policies, FDs, mutual funds, and gold, you've demonstrated a disciplined approach towards savings and investment. Your prudent decision to invest a lump sum for your newborn's future reflects your commitment to her well-being.

For aggressive investment for your daughter's future, you may consider equity mutual funds tailored to long-term wealth creation. These funds offer the potential for higher returns over the long term, aligning with your target of 15 years. Diversification across multiple funds can help manage risk effectively.

Regarding retirement planning, it's essential to assess your risk tolerance and time horizon to determine the appropriate investment strategy. While equity investments offer growth potential, they also come with higher volatility. Consider a balanced approach with a mix of equity and debt investments to mitigate risk and ensure steady returns.

Opening a PPF account can complement your existing investments and provide additional tax benefits. PPF offers attractive interest rates and tax-free returns, making it a suitable option for long-term wealth accumulation.

As a Certified Financial Planner, I encourage you to review your investment portfolio regularly and make adjustments as needed to stay on track towards your financial goals. Consider consulting with a CFP to develop a comprehensive financial plan tailored to your needs and aspirations.

In conclusion, by adopting a diversified investment approach, staying disciplined in your savings habits, and seeking professional guidance, you can secure a bright future for your daughter and achieve a comfortable retirement.

Best Regards,

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

Ans: You have provided valuable details about your financial situation. Let’s analyse your current standing and future goals.

Age: 46 years old
Running Investments:
Pension Plan with a current fund value of Rs 42 lakhs (maturing in 2037).
Equity Mutual Fund with a current fund value of Rs 12 lakhs.
Income & Expenditure:
Monthly rental income of Rs 8,000.
Monthly expenditure of Rs 25,000.
Yearly EMI of Rs 1.2 lakh for ongoing investments.
Savings: Bank balance of Rs 26 lakhs.
Investment Goals:
You want to invest Rs 10-15 lakh to build a corpus of Rs 1 crore in 18 years for your child.
You also need a monthly income of Rs 50,000 in the next 2-3 years.
Given these goals, let’s discuss how you can achieve them.

Income Generation for Monthly Needs (Rs 50,000)
To achieve a monthly income of Rs 50,000 in the next 2-3 years, we need to explore investment options that can generate consistent returns.

Rental Income: You already have Rs 8,000 coming in monthly. This helps reduce your income requirement.

Systematic Withdrawal Plan (SWP):

A Systematic Withdrawal Plan from your mutual funds could be useful.
You can park part of your Rs 26 lakh bank balance into a debt-oriented hybrid mutual fund.
These funds provide stability with moderate returns.
You can withdraw monthly amounts through SWP to meet your requirement.
Based on the fund's performance, you can plan to withdraw around Rs 42,000 per month to reach your target of Rs 50,000 (including Rs 8,000 from rent).
This option allows you to use your capital effectively while keeping it invested for moderate growth.

Fixed Income Options:

You may also consider some amount in fixed deposits or high-interest-bearing savings instruments.
However, they are taxed as per your income tax slab, so this may reduce post-tax returns.
Combining these with SWP ensures liquidity and some level of fixed returns.
This way, your immediate income needs can be met, keeping your capital intact.

Investment Plan for Building Rs 1 Crore for Child's Future
You aim to build Rs 1 crore in 18 years for your child. The best way to achieve this is through equity-based investments, as they tend to offer the highest long-term growth.

Equity Mutual Funds:

For long-term goals like 18 years, equity mutual funds are the most suitable.
Your existing equity mutual funds of Rs 12 lakh can continue to grow.
You can also invest Rs 10-15 lakh from your bank balance into diversified equity funds.
Actively managed equity mutual funds generally perform better over a long period compared to passive index funds, which often lack flexibility in changing market conditions.
It’s crucial to focus on mid-cap and small-cap funds as they have higher growth potential over an 18-year period.
Regular vs Direct Funds:

You might have heard about direct mutual funds, which have lower fees.
However, direct plans require deep market understanding and regular monitoring.
Investing through a Certified Financial Planner (CFP) who works with an MFD can help you manage your portfolio professionally, ensuring that your investments are regularly rebalanced to match market changes.
Regular plans, managed by CFPs, provide professional guidance, making them a better choice for individuals who do not want the stress of tracking every detail.
SIP for Consistent Growth:

You can start a SIP (Systematic Investment Plan) of Rs 50,000 monthly.
This amount will steadily build wealth over 18 years.
By investing Rs 50,000 a month in a mix of large-cap, mid-cap, and small-cap funds, you stand a good chance of achieving your target of Rs 1 crore.
A professional MFD working with a CFP can help you select funds based on your risk profile and growth expectations.
Review of Existing Pension Plan
Your pension plan with a current fund value of Rs 42 lakhs is a significant part of your retirement portfolio.

Performance Review:
It is crucial to review the performance of this pension plan periodically.
Ensure that it continues to give reasonable returns, as you have 13 more years until it matures.
Often, these plans have high charges and lower returns compared to equity mutual funds. You should evaluate if it makes sense to continue with this investment or switch to something more productive.
If the returns are lower than expected, you may want to consider redirecting future premiums into better-performing mutual funds.
Tax Implications on Your Investments
Understanding tax liabilities is essential for maximising your returns.

Capital Gains Tax on Mutual Funds:

For equity mutual funds, LTCG (Long-Term Capital Gains) above Rs 1.25 lakh is taxed at 12.5%.
Short-Term Capital Gains (STCG) on equity mutual funds are taxed at 20%.
For debt mutual funds, LTCG and STCG are taxed according to your income tax slab.
You should consult with your CFP to ensure that your withdrawals and investments are done in the most tax-efficient manner.
Tax on Rental Income:

The Rs 8,000 monthly rental income is also taxable.
Ensure you factor this into your annual tax planning.
By optimising tax strategies, you can maximise your returns while keeping your liabilities low.

Contingency and Emergency Fund
While investing for long-term goals, don’t overlook short-term financial safety.

Emergency Fund:
Out of your Rs 26 lakh bank balance, set aside at least Rs 4-5 lakh as an emergency fund.
This will help you manage any unforeseen expenses without disturbing your investments.
Keep this amount in a liquid or short-term debt fund for easy access.
Health Insurance:
Since your wife is the sole earning member now, ensure that you have adequate health insurance coverage.
This will help safeguard your family’s finances in case of medical emergencies.
Revisit Your Financial Plan Regularly
It is essential to track your financial journey.

Review Performance:

Regularly review the performance of your mutual funds and pension plans.
Make adjustments based on market conditions and your changing life circumstances.
Stay on Track with Goals:

Ensure that you are consistently investing towards your Rs 1 crore goal.
Keep in touch with your CFP to monitor if you’re on track, and take corrective actions if required.
By actively managing your investments and reviewing your goals, you can ensure financial security for your family.

Finally
Your situation is unique, and your goals are achievable with a disciplined approach.

By combining equity mutual funds, SWPs, and systematic SIPs, you can grow your wealth and generate regular income. Balancing risk and return is essential to meet your child’s future needs and your immediate income requirements.

Keep your financial plan flexible, review it often, and stay committed to your goals.

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