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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 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 - Aug 13, 2025Hindi

Advise for investing 15K/month

Ans: – You have taken a good step by planning investments early.
– This shows you value your financial future.
– Even a moderate monthly investment can grow into a big amount over time.
– With the right plan, you can secure life goals and avoid future stress.

» Assessing Your Financial Profile
– We first need to know your current income and expenses.
– Debt status and existing savings matter for proper planning.
– Your monthly risk-taking ability is also important for right asset allocation.
– Knowing your short, medium, and long-term goals is necessary before finalising options.

» Role of Risk Tolerance
– If you are young, you can take higher risk for higher growth.
– If you are near retirement, keep more in safe assets.
– The 15K should be split in different risk levels.
– This mix will help in steady growth without big loss shocks.

» Importance of Goal-Based Investing
– Decide your goals before investing your 15K monthly.
– Examples can be retirement, child education, marriage, or wealth creation.
– Each goal needs a different asset type and time frame.
– Matching investments to goals keeps your plan clear and disciplined.

» Building the Right Asset Mix
– For long-term growth, use more equity-based instruments.
– For medium-term safety, add debt-based investments.
– Keep a small part in gold for diversification.
– Do not put the whole 15K in one type of asset.

» Avoiding Overdependence on Index Funds
– Many think index funds are cheap and best.
– But they only copy market indexes without active decision making.
– In volatile times, they fall as much as the market.
– Actively managed funds can beat the index with expert strategies.
– They can also adjust sector exposure to protect capital in bad markets.

» Benefits of Regular Funds via CFP-Linked MFD
– Some prefer direct mutual funds for lower expense ratios.
– But direct funds give no personalised guidance.
– A CFP-linked MFD can guide on selection, asset mix, and review.
– The small extra cost is worth the better risk control and goal focus.

» Importance of Liquidity and Emergency Fund
– Before locking all 15K in investments, have an emergency fund ready.
– Keep at least 3–6 months’ expenses in a savings-linked product.
– This will help in case of job loss, illness, or family emergency.
– Liquidity avoids breaking long-term investments at a loss.

» Tax Awareness While Investing
– Equity mutual funds have tax benefits for long-term holdings.
– LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.
– Debt fund gains are taxed as per your income slab.
– Plan your withdrawal to reduce the tax burden.

» Spreading Across Time Horizons
– For short-term goals, avoid equity-heavy investments.
– For 3–5 years, use balanced allocation with debt focus.
– For more than 7–10 years, keep higher equity proportion.
– This way, each goal gets the right return and safety balance.

» Reviewing Investments Regularly
– Market and personal situations change with time.
– Review your investments at least once a year.
– Shift allocation if a goal gets closer.
– Rebalance to protect gains and control risk.

» Role of Discipline and Consistency
– Investing 15K every month is good only if done without breaks.
– Avoid stopping SIPs in market falls.
– Down markets are good times for long-term investors to accumulate units.
– Consistency is more powerful than timing the market.

» Protecting Investments with Insurance
– Without life and health cover, investments may get disturbed.
– Buy enough term life insurance to protect your family’s goals.
– Keep a health insurance policy to avoid using savings for hospital bills.
– Insurance acts as a safety net for your investment plan.

» Avoiding Common Mistakes
– Do not chase high return products without understanding risk.
– Avoid putting all money in fixed return assets as inflation will reduce value.
– Do not mix insurance and investment in one policy.
– Always link each investment to a clear goal and time frame.

» Growth with Equity-Based Options
– Use part of your 15K in quality equity-oriented instruments.
– They give better inflation-beating returns over 7–10 years.
– Select actively managed equity funds with proven track record.
– Diversify across large-cap, mid-cap, and sector-based as per risk profile.

» Stability with Debt-Based Options
– Use part of 15K in safe debt-based instruments.
– They protect your capital and give steady returns.
– Choose short-term and medium-term debt instruments as per your needs.
– They balance the risk from equity investments.

» Small Allocation to Gold
– Gold is a good hedge against inflation and currency risk.
– Keep a small portion in gold-related investments.
– Avoid putting a big part of your 15K here.
– Treat gold as a safety and not a main growth driver.

» Retirement Planning Angle
– If one goal is retirement, start with long-term focused assets.
– Increase equity exposure in early years for growth.
– Slowly shift to debt as retirement nears for safety.
– Keep inflation in mind while planning the retirement amount.

» Children’s Education and Marriage Goals
– Use the 15K partly for these if you have children.
– Keep time-based funds where maturity matches the need year.
– Avoid risky equity exposure when the goal is near.
– Secure important life goals before putting excess in pure growth plans.

» Inflation Protection in Long-Term Plans
– Inflation eats into real value of money.
– Equity helps in beating inflation over time.
– Fixed return products may fail to keep pace.
– Balance between growth and safety to keep purchasing power intact.

» Behaviour in Market Ups and Downs
– Do not panic in market falls.
– Avoid over-investing in euphoric market times.
– Stick to your allocation plan.
– Emotional investing can harm long-term results.

» Planning for Liquidity Needs
– Some part of the 15K can be in flexible products.
– This ensures you can access money without loss in emergencies.
– Avoid putting all in lock-in products unless they match your goals.
– Liquidity helps you face life events without debt.

» The Power of Compounding
– The earlier you start, the bigger the benefit.
– Even small monthly amounts grow large over decades.
– Do not disturb investments to let compounding work fully.
– Compounding is slow in early years but powerful later.

» Keeping Records and Tracking Progress
– Track each investment and its purpose.
– Use simple tracking tools or statements.
– Seeing progress keeps you motivated.
– It also helps you know when to adjust the plan.

» Adapting to Life Changes
– Marriage, children, or job changes need fresh planning.
– Update your plan whenever such events happen.
– Change allocation as per new responsibilities.
– Financial plans must stay flexible for real life needs.

» Handling Debt While Investing
– If you have high-interest loans, clear them first.
– Low-interest loans can be paid alongside investing.
– This ensures you don’t lose more in interest than you earn in returns.
– Keep debt levels in control to protect cash flow.

» Linking Investments to Bank Auto-Debit
– Use auto-debit to invest 15K monthly without fail.
– This builds discipline.
– Avoid manual transfers which may get skipped in busy months.
– Automation makes investment a habit.

» Importance of Expert Review
– Get a Certified Financial Planner to review the plan yearly.
– This avoids blind spots and wrong allocations.
– Experts can also guide on tax efficiency.
– Professional review protects your long-term wealth.

» Finally
– Your 15K monthly can achieve multiple goals if invested smartly.
– Keep the plan goal-based, diversified, and reviewed.
– Protect with insurance and an emergency fund.
– Avoid overdependence on index or direct funds.
– Use the power of active management and expert guidance.
– With patience and discipline, you can create wealth and security for life.

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.