My age 63 years total money is 2 crore ie 90 lacs mutual funds and shares 1 crore 10 lacs in annuity policies of lic and balance in deposits of bajaj sriram rbi bonds and post office schemes.i have a son who has no job last many years age 35 and has some health problems. My husband is retired .i retired from lic of india and i get a decent pension and also monthly annuities. My pension is 55000 and i fet 15000 annuities per month our mly expenses are 30000 and i put the balance in sip .i have sip and lic premiums per mobth of 45000.i also get some annuities as qly hly yly.i have put upto 45lacs in mutual funds lic single plans lic regular plans and sriram deposit in my son name.is this ok

Ans: It's commendable that you've been diligently planning for your family's future. Your commitment to securing your children's education and ensuring a comfortable retirement is truly admirable.

Considering your current investments, it's essential to evaluate if they align with your long-term goals. While your existing plans offer some protection and potential growth, diversifying your portfolio could provide added stability and growth potential. Have you explored avenues beyond traditional insurance policies and mutual funds?

Certified Financial Planners can offer personalized strategies tailored to your aspirations and risk tolerance. They can suggest options that balance growth potential with risk mitigation, guiding you towards achieving your desired corpus. Have you considered consulting one to fine-tune your financial roadmap?

Remember, the journey to financial security is not just about numbers—it's about ensuring peace of mind and enabling your loved ones to pursue their dreams. By proactively seeking guidance and exploring diverse investment avenues, you're laying a robust foundation for a fulfilling future. Keep nurturing your financial garden, and the seeds you sow today will bloom into a prosperous tomorrow.

Ans: Hi Saras,

Firstly sorry to hear about your son's health. I can only hope and pray that the situation improves.

As you have retired and your monthly expenses of 35000 is well within the income you are receiving and at the same time you have ongoing investments of 45000 monthly, your accumulations are growing.

So as far as you are concerned it seems like you will be adding to the corpus you already have. But with inflation your monthly expenses will increase and also more importantly your medical expenses will rise. So this becomes important to be managed with your corpus.

It is important to assess the portfolio from 3 perspectives - liquidity, stability and growth.
Liquidity is important to cover any unexpected or unplanned event requiring money immediately or with a short span of time.
Stability is important to weather market conditions and provide security for continuous and steady cashflow.
Growth is also important as you are looking at a long time to live on the money you have accumulated/invested and overcome inflation value.

As you have a mix of FD, Post office schemes, Insurance plans and Mutual funds, it is important to evaluate the portfolio from the above perspectives and realign it for your requirement for future.

Insurance plans (assuming they are insurance + investment product) can be good option when you are working/earning, but once you have retired, they may not be ideal option for investments. So the Insurance plans need to be reviewed and then decided on. If you have taken them many years ago and they are nearing maturity then, wait and collect maturity benefits. If they are more recently purchased and their maturity will be after a very long period, then they won't be ideal for you.

FD's, PO schemes and Mutual funds are a good combination. Overall the corpus with investments and incomes seen seem to be fine but a detailed analysis is required.

I would suggest you contact a CFP/Financial advisor who will guide you. Choose a fee based advisor who is not pushing any products.

Thanks & Regards
Janak Patel
Certified Financial Planner.

Ans: You have made a good start. Your discipline in SIPs, insurance, and long-term products like PPF shows a strong financial mindset. However, there are some areas that need improvement. As a Certified Financial Planner, I will give you a 360-degree view and provide practical suggestions.

Income and Savings Capacity
– Your monthly salary is Rs. 1.2 lakhs.
– SIP contribution is Rs. 30,000 per month.
– LIC premium is Rs. 2 lakhs annually, or about Rs. 16,600 monthly.
– This totals around Rs. 46,600 monthly in investments.
– That’s a good saving rate of around 38% of your income.

Appreciate your consistent savings behaviour. It’s a great habit.

SIP Portfolio Structure
Your SIP is spread across the following funds:

– Aditya Birla Sun Life Small Cap Fund
– HDFC Balanced Advantage Fund
– Kotak Emerging Equity Fund
– HSBC Value Fund
– ICICI Value Discovery Fund
– Franklin Templeton Smaller Companies Fund
– HDFC Flexi Cap Fund
– Bank of India Flexi Cap Fund
– ICICI Multi Asset Fund
– Nippon India Consumption Fund

That’s a total of 10 funds, which is excessive.

Key Issues in This Portfolio:
– Too many funds lead to duplication.
– Small caps are overexposed with two small cap funds.
– You also have two value funds. Value strategy needs patience.
– Multiple flexi-cap funds dilute the advantage of flexibility.
– Balanced Advantage and Multi Asset fund may overlap.
– Sectoral fund (consumption) increases risk.

Suggested Course of Action:
– Limit total funds to 4 or 5 only.
– Choose a mix of large & mid-cap, flexi-cap, balanced, and small cap.
– Maintain one value fund at most.
– Avoid sectoral or theme-based funds. They are risky.
– Don’t select funds based on past returns. Focus on consistency and management.
– Consider reviewing with a CFP-backed MFD regularly for course correction.

Index Funds Not Suitable
Though you haven’t included index funds, it’s important to mention:

– Index funds mimic the index and cannot outperform.
– No downside protection in volatile markets.
– Actively managed funds give better risk-adjusted returns in India.
– A qualified fund manager adapts better to changing market cycles.

Stick with quality active funds through a trusted MFD backed by a CFP.

Direct Mutual Funds – Avoid
You haven’t mentioned if SIPs are direct or regular. If they are direct:

– There is no guidance or monitoring from a professional.
– You may not exit or rebalance at the right time.
– You lose behavioural support during market crashes.
– Direct option looks cheap but costs more due to wrong decisions.

Better to invest through regular plans via an MFD who is also a CFP.

LIC Policies – Need Serious Review
Your LIC premium is Rs. 2 lakhs per annum. That’s significant.

– LIC plans are generally low return.
– Most policies give 4–5% returns only.
– They are neither pure insurance nor good investments.
– This blocks liquidity and opportunity for growth.

Action Needed:
– Do a detailed policy analysis.
– If policies are endowment or money-back plans, plan to surrender.
– Reinvest the surrender value in long-term mutual funds.
– Keep insurance and investment separate.

Your age is ideal to correct this early misstep.

PPF Contributions – Good Move
You have a PPF for yourself and one for your son.

– This is good for debt diversification.
– Gives tax-free maturity.
– Provides stability to the portfolio.
– Continue yearly contributions, especially to son’s account.

Suggestions:
– Ensure the yearly limit of Rs. 1.5 lakh is not breached combining both accounts.
– Use PPF for future education or wedding needs.
– Don’t touch it midway. Let it compound fully.

Health Insurance – Needs Upgrade
You have a mediclaim policy of Rs. 10 lakhs for your wife.

Immediate Concerns:
– What about your own coverage? You haven’t mentioned.
– Rs. 10 lakh may be insufficient as healthcare inflation is high.
– At least Rs. 20–25 lakh family floater is needed.

Suggested Actions:
– Buy a floater policy for yourself, wife and son.
– Add a super top-up of Rs. 25–30 lakhs.
– Always disclose existing illnesses while buying.
– Consider adding critical illness cover separately.

Child’s Future – Structured Planning Needed
Your son is 2 years old. You have started PPF for him. That’s thoughtful.

But:

– PPF alone may not meet rising education costs.
– You need to start a dedicated SIP towards his education.
– Add a SIP with a horizon of 15–18 years.
– As the goal is long-term, start with aggressive equity exposure.
– Slowly reduce equity as goal comes closer.

Emergency Fund – Not Mentioned
You haven’t mentioned your emergency fund.

– You must keep 6 to 9 months of expenses in liquid form.
– FD, liquid mutual funds or sweep-in savings are suitable.
– Never invest emergency funds in equity or long lock-in products.

Suggested Step:
– Immediately build a Rs. 2–3 lakh emergency corpus if not already done.

Life Insurance – Missing Term Plan
You only have LIC traditional plans. They are not pure protection plans.

– Buy a term insurance of at least Rs. 1 crore.
– Use online comparison platforms but choose established insurers.
– Coverage should continue till age 60 or retirement.
– Only term plans provide value-for-money coverage.

Tax Planning – Moderate Scope
You are already using:

– PPF for Sec 80C
– LIC premiums for 80C
– Health policy for Sec 80D

Suggestions:
– Avoid buying products only for tax saving.
– Mutual fund ELSS can be added if tax saving under 80C is incomplete.
– Don’t mix tax saving with goal-based investments.

Investment Objectives – Align with Goals
You are investing in multiple funds. But are they aligned with goals?

Suggested goal-based buckets:

– Retirement Planning: Use a mix of equity and hybrid funds.
– Child’s Education: High equity now; reduce as goal nears.
– Home or Other Goals: If within 5 years, avoid equity.
– Contingency & Health: Use low-risk instruments only.

Every investment should have a purpose. Random investments lead to confusion and underperformance.

Monitoring and Rebalancing – Very Essential
– Review portfolio at least once a year.
– Check for fund underperformance.
– Exit non-performers with professional help.
– Rebalance between equity and debt every year.
– Don’t stay invested blindly in the same fund for years.

Role of Certified Financial Planner
A Certified Financial Planner (CFP) offers:

– Structured investment plans
– Behavioural discipline support
– Periodic rebalancing
– Goal-based tracking
– Insurance analysis
– Tax and legacy planning

Investing without a professional is like sailing without a compass. Avoid mistakes and missed opportunities.

Final Insights
– You have a solid savings habit.
– But your investment mix is too scattered.
– LIC policies are locking capital with poor returns.
– Medical and term insurance needs fixing.
– Emergency and goal-specific planning is needed.
– Too many funds dilute returns and increase confusion.
– Invest through a CFP-led MFD. Avoid direct and sectoral funds.

Make your investments goal-driven, not product-driven.

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

Ans: You are already doing many things right.
You are saving. You are investing. You are repaying loans.
You have taken term insurance. You have an emergency fund too.
That is a solid starting point.

Still, your concerns are valid.
Late start, uncertain job, young child, and loans can create pressure.
But a right plan can bring clarity and peace.

Let’s now plan in a 360-degree way.

» Income, Expenses and Savings Analysis

You earn Rs. 1 lakh per month.

Spouse earns Rs. 25,000 monthly on contract.

So, household income is Rs. 1.25 lakh per month.

You are paying Rs. 9,200 EMI on personal loan.

Also, Rs. 50,000 per month goes to repay relative’s loan.

This large outgo is temporary. Only for 10 months.

Once Rs. 50,000 monthly outgo ends, channel it to investments.
It will give your plan a big boost.

» Loan and Liability Evaluation

Personal loan of Rs. 5 lakh is running.

You are paying Rs. 9,200 monthly EMI.

Try to close this in 3 years.

If possible, prepay once relative’s loan is over.

You also borrowed Rs. 5 lakh from family.

That is interest-free. You are repaying Rs. 50,000 per month.

That will be over in 10 months.

No other home loan means less financial pressure.
This puts you in a stronger long-term position.

» Insurance and Protection Review

You have a term insurance of Rs. 1 crore.

But premium is Rs. 43,000 yearly for 15 years.

That seems high. Review the policy once.

Term plan should be pure cover, no returns.

You can take a cheaper term plan for higher cover.

Buy health insurance this month.

You are doing the right thing here.

Rs. 30,000 family floater is a good move.

Don’t depend only on corporate cover.

Health insurance protects long-term savings.

You also have a ULIP from PNB MetLife.

Your father is paying Rs. 2 lakh per year.

Maturity is Rs. 35 lakh in 15 years.

Since 5 premiums are paid, don’t stop now.

Let your father complete the full 10 years.

But don’t consider ULIP in your own investment strategy.
It is better to separate insurance and investments.

» Emergency and Liquidity Check

You have Rs. 1 lakh emergency fund.

And Rs. 1 lakh cash flow buffer.

You also add to emergency fund from bonuses.

This is a great habit.
Keep building this to at least Rs. 2.5 lakh.
Try to park it in a liquid mutual fund.
This will earn better than savings account.

Emergency fund is like a seat belt.
It protects your financial life from unexpected bumps.

» Investment Assessment and Consolidation

Let’s assess your current investments one by one:

PPF – Rs. 7 lakh.

Good for long-term tax-free corpus.

Continue till full 15 years.

EPF – Rs. 4 lakh.

Keep contributing through salary.

Don’t touch it early.

NSC – Rs. 5 lakh.

Matures in 2026.

Use maturity amount to invest in mutual funds.

Mutual Funds – Rs. 1.2 lakh (ICICI and HDFC).

Monthly SIP: Rs. 2,000.

Amount is low. But direction is right.

You must increase SIPs steadily.

Stocks – Rs. 2.8 lakh.

Individual stocks need active tracking.

Keep them limited to 10–15% of your total assets.

Consider shifting to diversified mutual funds slowly.

Your asset base is decent.
But monthly investment amount is low.
That is the gap to fill.

» Real Estate Note

One flat is available for rent.

Monthly rent of Rs. 20,000 is possible.

Get it rented soon.

Use rental income to invest monthly.

Avoid buying more real estate.
Don’t lock money in land or property again.
Real estate is illiquid and slow-growing.

Focus on financial assets instead.

» Retirement and Child Planning Concerns

You are 37. Retirement may be 18–20 years away.
Child is 2 years old.
College expenses will start after 15 years.

Your challenge is to grow wealth smartly now.
Job risk makes this even more urgent.

You need flexibility, liquidity and high growth.
Mutual funds are the best option.

Avoid index funds.
They only mirror the market.
They don’t protect capital in a fall.
No active risk management. No expert control.

Choose actively managed funds only.
They aim to beat the market.
They manage risk during volatility.

Also, avoid direct funds.
They come with lower cost but no guidance.
Regular funds via CFP and MFD are better.
They offer review, rebalancing, and behaviour control.

This is crucial when market falls or emotions rise.

» Action Plan: What to Do Now

Repay Rs. 5 lakh borrowed from relative in 10 months.

Don’t prepay PNB ULIP. Let your father complete 10 years.

Increase your emergency fund to Rs. 2.5 lakh.

Don’t increase stock investments.

Start SIPs of Rs. 20,000 per month from April 2025.
(Rs. 50,000 loan repayment will get over by then)

Split SIP across 4 fund categories:

Multi-cap fund

Flexi-cap fund

Small-cap fund

Balanced advantage fund

Start ELSS mutual fund of Rs. 1.5 lakh yearly for tax saving.

Invest only in regular plans via a Certified Financial Planner.

Review SIPs every year and increase by 10%.

Use NSC maturity amount in 2026 to invest in mutual funds.

Use rental income of Rs. 20,000 per month for additional SIP.

Avoid NPS or annuity plans. They have liquidity issues.

» Retirement Target Strategy

PPF + EPF + Mutual funds will form your core retirement corpus.

ULIP maturity can support some lifestyle goals.

Keep increasing SIP every year.

Avoid lifestyle inflation even if income grows.

Direct all extra money into investments.

Job uncertainty can be managed through this approach.
Diversified funds and SIPs give peace and flexibility.
You can even achieve early retirement if plan is consistent.

» Child Education Planning

Start a separate SIP of Rs. 5,000 for child goal.

Increase it to Rs. 10,000 by April 2026.

Choose one small-cap fund and one hybrid fund.

Don’t invest for child in real estate or insurance plans.

Keep the corpus flexible.
Withdraw in parts as needed after 15 years.

Also, take one child-specific rider in your term insurance.
That ensures financial safety even in emergencies.

» Finally

You are on the right track.

Loans are manageable and will be over soon.

Your base is strong – EPF, PPF, ULIP, NSC, cash flow.

Just shift the focus fully to mutual funds now.

Avoid direct funds, avoid index funds, avoid ULIPs in future.
Rely on regular mutual funds through Certified Financial Planner only.

Start with Rs. 20,000 SIP from next year.
Add rental income and bonus to SIPs.
Increase SIPs each year by 10% at least.
Hold these funds for 15+ years without panic.

This one disciplined strategy will secure both retirement and child goals.
Even job risks will not bother you if this plan is followed.

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