Hi sir. My age is 66 years, my question to you is where to invest Lic maturity amount of 50 lac which i will be getting in a month's time. I and my wife has the following investments PPF 1CR. Still continuing FD 60L Senior citizen scheme 60L JEEWAN Akshay 50L Pist off.monthly scheme 18L Mutual fund 5L We are staying in our own house and has no financial liability as both my daughters are well settled and married. I have rental income of 30 thosand PM Will it be feasible for me to invest in mutual funds at this stage or go for FD'S etc. Regards

Ans: You are 42 years old, working as a GM in a hotel with a monthly salary of Rs 1.2 lakh.

Net in hand post TDS is Rs 1.10 lakh.

You own a flat in Bhiwadi worth Rs 25 lakh, a shop in Gurgaon worth Rs 30 lakh, and a paternal house in South Delhi.

Your savings include Rs 6 lakh in digital gold, Rs 1.5 lakh in equity, and Rs 50,000 in mutual funds.

You have a ULIP-linked LIC with a premium of Rs 50,000 per year and a term insurance of Rs 75 lakh with a premium of Rs 15,000 per annum.

Monthly household expenses are Rs 50,000.

You wish to invest Rs 50,000 per month but prefer not to make regular payments like SIPs.

Investment Strategy

Lump Sum Investments

Lump sum investments suit your preference for irregular payments.

Consider investing in diversified equity mutual funds.

These funds provide good returns over time.

Balance risk with a mix of large-cap, mid-cap, and small-cap funds.

Digital Gold

You already have Rs 6 lakh in digital gold.

Gold is a good hedge against inflation.

Avoid further investment in gold.

Diversify into other asset classes.

Equity and Mutual Funds

You have Rs 1.5 lakh in equity and Rs 50,000 in mutual funds.

Increase your mutual fund investments.

Choose actively managed funds for better returns.

Avoid direct equity if you cannot regularly monitor the market.

ULIP

ULIPs combine insurance and investment.

They usually have high charges.

Consider surrendering the ULIP and reinvesting in mutual funds.

This can offer better returns and lower charges.

Term Insurance

Your term insurance cover of Rs 75 lakh is good.

Ensure it is sufficient for your family's needs.

Review and adjust coverage if required.

Fixed Income Investments

Consider fixed income options like fixed deposits and government bonds.

These provide stability and predictable returns.

Allocate a portion of your funds here to balance risk.

Emergency Fund

Maintain an emergency fund equal to 6-12 months of expenses.

Keep this fund in a liquid savings account or short-term FD.

This fund provides financial security for unforeseen events.

Tax Saving Investments

Invest in tax-saving instruments under Section 80C.

Consider ELSS mutual funds for tax savings and good returns.

This will reduce your taxable income.

Review and Adjust Portfolio

Regularly review your investment portfolio.

Adjust based on market conditions and personal circumstances.

Consult a Certified Financial Planner (CFP) for professional advice.

Final Insights

Your goal is to invest Rs 50,000 per month with flexibility.

Lump sum investments in diversified equity mutual funds are suitable.

Avoid further investments in gold and consider surrendering ULIP.

Maintain an emergency fund and review your insurance coverage.

Consider tax-saving investments to optimize your tax liability.

Regularly review and adjust your portfolio with professional guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello; Your current MF corpus(20+10 gratuity balance L) plus sip of (1 L) is assumed to be invested in equity savings type hybrid mutual fund.

This will yield you a comprehensive corpus of 63 L. (10% modest return considered)

If you buy an immediate annuity from an insurance company for your corpus sum, it may provide you a monthly income of 31.5K (6% annuity rate assumed).

The site value is not factored into this working.

Also the rental income accruing from the new flat is not considered here.

Clearly this is significantly less then your expectation of 1 L per month. Although you have stated that higher education of your elder son is provided for, the arrangement to fund higher education of your second needs to be secured too.

If you postpone your retirement by 7 years then I can suggest you to consider investing in pure equity funds and considering modest return of 13% will yield you a comprehensive corpus of 2.1 Cr yielding monthly income over 1 L considering 6% annuity.

The rental income from flat and/or site may act as tools to fund second son's higher education.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ignore previous answer which was erroneously posted against your query.

Happy Investing!!

Ans: Hello;

You may invest in balanced advantage fund and multi asset allocation fund.

They are more suited for your age and risk profile.

You may allocate 10% into large cap or flexicap funds but avoid thematic and sectoral funds completely.

Happy Investing;
X: @mars_invest

Ans: You have managed to keep life simple and stable. At 45, with no EMI and a working spouse, you are in a comfortable position. Your daughter’s future is also on your mind, which is wonderful. Now, let us study your current portfolio and see how to make it better.

» Present snapshot
– Kotak policy: Rs 3,000 per month till 2029.
– NPS: Rs 2,000 per month.
– Sukanya Samriddhi: Rs 2,000 per month.
– LIC policy for daughter: Rs 36,711 per year.
– Wife LIC policy: Rs 1,20,000 per year.
– Wife SIPs: Rs 2,500 each in two large cap funds.
– House owned, no EMI.
– Family: wife working, daughter age 12.

» Strengths in your planning
– Own house gives stability and no rent stress.
– Sukanya Samriddhi ensures secured education or marriage fund for daughter.
– NPS adds one more source of retirement income.
– SIP in equity funds has already started, which is good discipline.
– Wife contributes to family wealth actively.
– You have thought of protection through insurance policies.

» Weaknesses seen
– High allocation towards insurance policies.
– These give low return compared to mutual funds.
– Kotak policy is investment plus insurance, returns are modest.
– LIC policy for daughter is not efficient. Insurance should not be bought for children.
– Wife’s LIC policy is heavy premium and early stage.
– Equity mutual fund allocation is very small.
– SIP of Rs 2,000 in NPS will not be enough for retirement.
– Excess money locked in low return products reduces long-term wealth.

» Issue with investment cum insurance policies
– These mix protection and savings.
– Insurance cover is very low compared to need.
– Returns are also less than mutual funds.
– For long-term wealth, equity mutual funds are better.
– Insurance should be separate, only for protection.
– If surrendered, reinvestment into mutual funds will grow faster.

» Importance of term insurance
– At present, no pure term insurance is mentioned.
– Term cover gives large protection at low cost.
– This protects wife and daughter if something happens to you.
– Policies like LIC or Kotak are not giving enough risk cover.
– Buying sufficient term insurance is very important now.

» Mutual fund strategy
– Currently, only wife is investing in large cap funds.
– Large cap alone will not give best returns for 15 years.
– You can add flexi cap, multi cap, and balanced advantage funds.
– Exposure to small and mid cap can be small but helpful.
– Actively managed funds are better than index funds.
– Index funds cannot adjust when market cycles change.
– Active managers rebalance and protect downside.

» Direct fund risk
– If you and wife are investing in direct funds, review is on you.
– Many investors forget rebalancing and stay in wrong funds.
– Regular funds via MFD with CFP review are safer.
– Expert hand ensures portfolio health and right switches.
– Small extra cost is worth the long-term guidance.

» Retirement outlook
– At 45, you may have 15 years till retirement.
– Current allocation is not enough for retirement wealth.
– NPS of Rs 2,000 is too small.
– LIC and Kotak policies will not give enough growth.
– You need higher equity mutual fund allocation.
– At least Rs 10,000–15,000 monthly in equity funds is needed.
– This can be slowly built from extra savings.

» Child education and marriage
– Daughter is 12, higher education is 6 years away.
– Marriage is 15+ years away.
– Sukanya Samriddhi will give guaranteed sum but returns are limited.
– Add equity mutual funds for better growth for education goal.
– SIP linked to child’s education fund can create required corpus.
– Do not depend only on Sukanya and LIC.

» Health protection
– No mention of health insurance.
– Health expenses can eat savings.
– Family health cover should be taken for all.
– At least Rs 10–15 lakh coverage needed.
– This saves you from using EPF or mutual funds in medical emergency.

» Where to put extra Rs 2,000 per month
– Avoid putting into another LIC or endowment policy.
– Put into diversified equity mutual fund.
– Choose active fund category like flexi cap or multi asset.
– This small amount will grow meaningfully in 15 years.
– Increasing SIPs as income grows is also key.

» Tax angle
– Equity mutual funds are tax friendly.
– LTCG above Rs 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– Debt products like FD or insurance returns are fully taxed at slab rate.
– By using equity mutual funds, you pay lower tax and build wealth.

» Action plan for you
– Buy term insurance cover.
– Buy adequate health insurance for family.
– Continue Sukanya contribution till maturity.
– Continue NPS, but also increase equity mutual funds.
– Slowly reduce exposure to Kotak policy and LIC policies.
– Invest surrendered money into diversified equity funds.
– Wife should continue SIPs but diversify beyond large cap.
– Increase family SIPs step by step every year.
– Keep emergency fund in liquid mutual fund, not in bank account.

» Finally
– You have no EMI burden and own house, which is a big strength.
– You have created many small savings buckets.
– But too much money is locked in low-return policies.
– You need more equity mutual fund exposure for long-term growth.
– Secure family with term insurance and health cover.
– Use SIPs for child education and retirement goals.
– Shift from insurance-based investments to proper mutual funds.
– This will give balance of safety and growth for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Hi Nitinn,

Sorry that you are going through some family problem. Will definitely try to help you here.

Share your monthly expenses and requirements post retirement so that I can guide you in a better way.

- Do have ample health insurance for yourself and family.
- You need to have sufficient saved for your daughter's higher education. Share the approximate cost that you will require.

Share the above mentioned details and will guide you.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/