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Ulhas Joshi | Answer |Ask -Follow

Mutual Fund Expert - Answered on Sep 25, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more

Question by Arun on Sep 20, 2023Hindi

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Hi, I am Arun, I am doing 6000K sip per month. 1000 SBI contra Fund – Regular plan – growth, HDFC Flexicap Fund- Grouth, ICICI Prudential smallcap fund-growth, Nippon India small cap fund – growth plan, Bandhan sterling value fund - regular plan- growth & SBI small cap fund reglar – growth. Kindly advise am i investing in right sips.

Ans: Hello Arun and thanks for writing to me. The funds you investing in are good funds, assuming you are investing for long term wealth creation and you are comfortable with risk.

If you elaborate on your goals, risk appetite and time horizon I may recommend other schemes.

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.

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Question by Naushad - Jun 13, 2022Hindi

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I am 34 and recently started the following SIPs per month. Need your guidance for the same. (a) Mirae Asset Large Cap Fund Direct growth - 2000/- (b) Tata Digital India Fund Direct growth - 1000/- (c) Axis Midcap direct plan growth - 1000/- (d) SBI small cap fund direct growth - 1000/- (e) ICICI PRUDENTIAL Technology direct plan growth - 1000/- (f) BOI AXA small cap fund direct growth - 500/-

Ans: Please continue

Nikunj Saraf | Answer |Ask -Follow

Mutual Funds Expert - Answered on Apr 28, 2023

Question by Mayank - Mar 30, 2023Hindi

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Hi I am Mayank 41 yrs old i am doing SIP OF 6000 k per month . 4000 :- PARAG PAREKH 1000:- MIRRAE ASSET 1000:- QUANT SMALL CAP 1000:- QUANT MIDCAP. Kindly advise am i investing in right sips

Ans: Hello Mayank. Your current investment portfolio appears to be in good condition and well aligned with the market. It seems you have thorough research on market. No changes required in current portfolio. In addition , I recommend adding 10-20% to your current sip amount on a semi-annual basis and an annual basis.

Vivek Lala | Answer |Ask -Follow

Tax, MF Expert - Answered on Aug 25, 2023

Asked by Anonymous - Jul 05, 2023Hindi

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Hi I am Mayank 41 yrs old i am doing SIP OF 11 k per month . 4000 :- PARAG PAREKH 1000:- MIRRAE ASSET 1000:- QUANT SMALL CAP 1000:- QUANT ACTIVE . 3000 :- HDFC MIDCAP OPPORTUNITS 1000 :- TATA SMALL CAP Kindly advise am i investing in right sips Also let me know what will be my corpus amount with approx interest. Also let me know am i investing in right funds . Kindly advise

Ans: Hello, the corpus amount depends on the time duration you will be investing, For eg if you are investing for 15yrs then your corpus at 12% xirr will be approx Rs.54.95L

Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on Feb 06, 2024

Question by DIPAK - Sep 29, 2023Hindi

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Sir, I am 55, following are my SIPs per month: 1. Canara Robeco Emerging Equities Direct Growth- Rs. 2000/- 2. Kotak Equity Opportunities Fund Direct Growth- Rs. 2000/- 3. SBI Flexicap Fund Regular Plan Growth- 2000/- 4. SBI Blue Chip Fund - Regular Plan Growth-5000/- 5. HDFC Mid cap Opportunity Fund - Regular Plan Growth- 2000/-. Kindly advice. Also, I would like to invest more 10,000/- per month in SIP. Please suggest where should i invest.

Ans: It's great that you're investing your monthly surplus in SIPs to build your wealth.

You have a well-diversified portfolio and the funds in your portfolio are performing well in the current market scenario. In the finance planning of any portfolio, it is also important to consider many factors, including client age, risk profile, current asset allocation, etc.

As you’re 55 years of age and already have a high allocation of equity in your portfolio, for the additional investment, I suggest you start investing in a Balanced Advantage Fund and Equity Saving Fund to make your portfolio a bit conservative.

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Question by Rajesh - May 30, 2025

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sir, am 26 year old and have some SIPs for Rs 1000 each. 1. QUANT SMALL CAP FUND DIRECT 2. NIPPON INDIA LARGE CAP DIRECT 3. MIRAE ASSEST ELSS TAX SAVER 4. UTI NIFTY 50 5. PARAG PARIKH FLEXI CAP 6. TATA MIDCAP GROWTH DIRECT 7. TATA SMALL CAP DIRECT my question is, these are good SIPs for next 10-15 years ? second is i want to invest 10000 more per month, please let me know which SIPs will be good for next 15 years. Thanks

Ans: At age 26, it is appreciable that you have started investing early.

It shows responsibility towards your future financial goals.

Your current SIPs are diversified across multiple categories.

But some of these SIPs may not be aligned well for long-term consistency.

Let us now review each one professionally.

1. Quant Small Cap Fund - Direct

Small caps can be volatile.

This fund is aggressive and high-risk.

Direct plans have no guidance or monitoring.

This may affect long-term performance.

Switching to a regular plan with a Certified Financial Planner is better.

This will ensure proper guidance and rebalancing.

2. Nippon India Large Cap - Direct

Large caps offer stability in a portfolio.

However, this fund’s long-term consistency is not very strong.

Also, direct plans lack expert monitoring.

A regular plan through a CFP ensures better handholding.

Tracking and performance review becomes easier.

3. Mirae Asset ELSS Tax Saver

This fund is decent for tax saving.

It is diversified and has shown fair returns.

However, regular review is still needed.

A regular plan helps with documentation and timely alerts.

Switching to regular mode can be beneficial in the long run.

4. UTI Nifty 50 - Direct

This is an index fund.

Index funds only mirror the market.

They do not aim to beat the market.

They lack human intelligence and flexibility.

They don’t perform well during corrections or sideways markets.

Actively managed funds have higher potential.

They can outperform in changing market situations.

Consider replacing this with a well-managed large cap fund.

In regular plan through CFP, you get guided fund selection.

5. Parag Parikh Flexi Cap

Flexi cap funds provide flexibility across market segments.

This fund has been popular recently.

But it has higher exposure to international stocks.

This brings currency risk and regulatory risks.

Also, it may overlap with other holdings.

You should regularly monitor for overlap and concentration.

Again, direct mode has no professional review.

6. Tata Midcap Growth - Direct

Midcaps are good for long-term.

But they need close tracking due to higher volatility.

A regular plan with expert guidance is ideal.

Direct mode will not help during market correction periods.

Switching to regular mode will ensure ongoing support.

7. Tata Small Cap - Direct

Small caps are risky in short to medium term.

This should not be your core holding.

Should be allocated only with close guidance.

Again, direct plans can go off-track without support.

If unmanaged, can bring portfolio imbalance.

Assessment of Direct Funds: Key Concerns

Direct funds may look cheaper in expense.

But they lack professional support and review.

There is no monitoring of changes in fund quality.

You may miss timely exits and rebalancing.

A Certified Financial Planner guides with logic and analysis.

They also help align your funds with your goals.

Regular plans have MFD support and rebalancing discipline.

They protect from behavioural mistakes during market volatility.

Overall, regular funds with expert guidance bring higher net value.

What Can Be Done with Your Existing SIPs?

You can consider the following changes:

Discontinue index fund (UTI Nifty 50) SIP.



Reduce exposure to direct small and midcap funds.



Switch from direct plans to regular plans via a Certified Financial Planner.



Ensure SIPs are part of a professionally constructed portfolio.



Ensure proper asset allocation, fund category balancing and tax efficiency.



New SIP of Rs 10,000 per Month – Suggestions

For your new Rs 10,000 monthly SIP, here is a 360-degree plan:

Allocate across diversified categories.



Ensure each fund has low overlap and different market focus.



Invest in 3 to 4 funds max.



All in regular mode with CFP-led support.



Avoid index funds, as they only match market returns.



Go for actively managed funds with proven history.



Include large-cap, mid-cap and flexi-cap mix.



Monitor quarterly with your Certified Financial Planner.



Additional Guidance for 15-Year Wealth Building

At 26, your time horizon is excellent.

But long-term wealth creation needs more than just SIPs.

It needs strategy and discipline.

Below are key steps for a full-circle approach:

Set clear financial goals: Home, car, retirement, child education etc.



Link SIPs to each goal separately.



Keep emergency fund in place (6 months expenses).



Get sufficient life and health insurance (pure protection plans).



Avoid investment-cum-insurance products.



They give low returns and poor insurance.



Do not mix insurance with investment.



Track your SIP performance annually.



Rebalance if some funds underperform.



Maintain asset allocation: Equity, Debt and Liquid.



Avoid emotional reactions during market dips.



Stay invested with guidance from your CFP.



Be aware of taxation rules on equity and debt funds.



LTCG on equity above Rs 1.25 lakh is taxed at 12.5%.



STCG on equity is taxed at 20%.



Debt fund gains are taxed as per income slab.



Regular plan MFD and CFP helps with all tax planning.



What Not to Do in the Next 15 Years

Don’t invest in index funds.



They lack active strategy.



Don’t choose funds by past returns only.



Don’t use direct funds without financial expertise.



Don’t invest in real estate for returns.



Don’t invest in annuity products for retirement.



Don’t mix investment and insurance.



Don’t make decisions based on short-term news or noise.



Don’t stop SIPs during market corrections.



Role of a Certified Financial Planner

A Certified Financial Planner helps you:

Set goals based on life stages.



Create custom SIP and lump sum plans.



Select the best active funds for your goals.



Rebalance annually to stay on track.



Plan taxes as per latest rules.



Protect wealth with right insurances.



Build retirement with strategic planning.



Create a total financial blueprint for life.



Keep emotions out of financial decisions.



Final Insights

You have taken a great step by starting early.

But choosing the right funds is key.

More important is monitoring them regularly.

Direct plans lack this important support.

Switching to regular plans under CFP brings value.

Also, add Rs 10,000 new SIP with proper strategy.

Don’t follow trends.

Stay committed and review annually.

Avoid overlapping funds and unnecessary risks.

Have a complete financial roadmap in place.

You are building your future.

Make each rupee work with expert guidance.

This 360-degree approach will lead to better outcomes.

You will be financially secure and confident.

Take the next steps with clarity and care.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Latest Questions

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Question by Jyoti - Jun 24, 2025Hindi

Money

I am 40. Monthly salary 2.5 lac. Have 40 lac of equity.1.2 lac of MF investment per month with 5 lac of portfolio balance. 10lac balance. Monthly expenses 50k. Please suggest to create corpus of 5 cr in next 10 years

Ans: Current Financial Snapshot

Age: 40 years

Monthly income: Rs. 2.5 lakhs

Monthly expenses: Rs. 50,000

Monthly surplus: Rs. 2 lakhs

Existing mutual funds: Rs. 5 lakhs

Monthly SIP: Rs. 1.2 lakhs

Direct equity holdings: Rs. 40 lakhs

Bank balance: Rs. 10 lakhs

Your aspiration to accumulate Rs. 5 crores in 10 years is realistic. However, it demands smart financial decisions, risk control, consistent savings, and portfolio monitoring.

Cash Flow Utilisation

You have a high surplus of Rs. 2 lakhs per month

SIP contribution is already Rs. 1.2 lakhs

This shows good savings discipline

Unused surplus of Rs. 80,000 should be aligned with goals

Avoid idle cash beyond 6 months of expenses

Create a systematic structure for deploying this surplus wisely.

Emergency Reserve Planning

Maintain 6 to 9 months’ expenses as emergency fund

That means Rs. 3 to 4.5 lakhs should be parked safely

Use a sweep-in FD or liquid mutual funds for this

Do not use equity or equity mutual funds as emergency reserve

Your bank balance of Rs. 10 lakhs can partly serve this purpose

Emergency fund must be accessible, stable, and uncorrelated with markets.

Review of Equity Portfolio

Rs. 40 lakhs invested in equity is a strong asset

Assess quality and sector exposure of these stocks

Are they large, mid or small-cap?

Are they consistently reviewed or just held without tracking?

Over-diversification or stock overlap should be avoided

If you are unable to evaluate stocks professionally, gradually move to mutual funds.

Mutual Fund Portfolio Management

SIP of Rs. 1.2 lakh monthly is impressive

Existing MF value is Rs. 5 lakhs, showing recent start

Ensure the funds are actively managed

Avoid index funds

Index funds lack flexibility in market downturns

Actively managed funds offer downside protection

Good fund managers adjust portfolio based on market conditions

Don’t use direct plans without expert guidance.

Disadvantages of Direct Funds

Direct plans cut out commissions but also cut out guidance

You miss rebalancing insights from a Certified Financial Planner

No help during market corrections

Wrong fund selection can reduce overall return

Fund manager changes or strategy shifts often go unnoticed

Regular plans via a Certified Financial Planner offer better strategy support

Investor behavior affects returns more than expense ratio

Choose regular plans through an MFD with a CFP credential for long-term benefits.

Allocation of Existing Assets

You have Rs. 55 lakhs of financial assets:

Rs. 40 lakhs in equity

Rs. 5 lakhs in mutual funds

Rs. 10 lakhs in savings

Recommended action:

Retain Rs. 4 lakhs for emergency needs

Use Rs. 6 lakhs in a staggered manner into equity mutual funds

Avoid lump sum into direct equity unless very confident

Maintain asset allocation and don’t get emotionally attached to stocks

Equity holding should be assessed and pruned for underperformers regularly.

Monthly Investment Strategy

From Rs. 2 lakh surplus:

Rs. 1.2 lakhs already going into SIPs

Allocate Rs. 40,000 into additional equity MFs

Allocate Rs. 20,000 into conservative hybrid or dynamic funds

Allocate Rs. 20,000 into gold or international funds if needed

Review fund categories every 6 months with a Certified Financial Planner.

Avoid Mixing Insurance and Investment

If you have ULIPs or traditional LIC plans, evaluate returns

Traditional plans usually offer returns of 4% to 5%

These are capital inefficient compared to mutual funds

If you hold any such investment-linked insurance policies, consider surrender

Reinvest the proceeds into diversified equity mutual funds through an MFD

Use term insurance for protection, not for investment

Investment and insurance should never be combined.

Tax Efficiency Considerations

Under new rules, equity mutual funds have revised taxation

LTCG over Rs. 1.25 lakh taxed at 12.5%

STCG taxed at 20%

Debt fund gains taxed as per slab

Keep holding periods in mind to reduce taxes

Opt for growth plans, not dividend

Avoid frequent switching of funds

Tax planning should not drive the investment, but cannot be ignored either.

Asset Allocation Approach

Don't be 100% in equity

Ideal asset mix depends on your risk tolerance

At age 40, equity allocation can be up to 70%

Use 20% for hybrid or conservative funds

Keep 10% for emergency and contingency liquidity

Review asset allocation at least once a year

Don’t chase returns, protect capital also

Diversification must be across asset classes, fund styles, and risk levels.

Goal Mapping for Rs. 5 Crore Target

To reach Rs. 5 crores in 10 years:

With 12% average annualised return, consistent monthly investment needed

Your current SIPs and surplus can help you reach or even exceed the goal

But returns are not linear every year

Review annually, rebalance when needed

Avoid stopping SIPs during market falls

Use a 3-bucket approach for investing – Core, Tactical, and Strategic

Use goal-based planning, not only product-based investing.

Behavioral Management and Monitoring

Market volatility will test your patience

Stick to SIPs even during downturns

Don’t time the market

Set review points every 6 months

Consult your Certified Financial Planner during market highs and lows

Emotional investing can ruin returns

Use automated STPs from liquid to equity funds if needed

Consistency beats intensity. Be process-driven, not return-driven.

Avoid Common Investment Mistakes

Don’t chase hot stocks or funds

Don’t rely only on past performance

Don’t stop SIPs when markets fall

Don’t use money meant for goals for short-term trading

Don’t keep checking portfolio daily

Don’t fall for unsolicited stock tips or social media trends

Don’t be under-insured

Your financial plan should have safety nets and growth elements.

Insurance Planning

Life insurance must be term-only

Coverage should be at least 15 times your annual income

Avoid endowment and money-back policies

Health insurance must cover self and family adequately

Check for critical illness and accident cover as add-ons

Insurance is a protection tool, not a wealth creation tool

Wrong insurance choices can reduce your investible surplus.

Estate and Succession Planning

Prepare a Will

Ensure nominations in all investments

For mutual funds, update folio nominations regularly

Consider joint holding in bank accounts

Keep family informed of asset details

Review estate documents every 3 years

Wealth creation is incomplete without proper wealth transfer planning.

Finally

You are in a strong financial position

Monthly surplus and discipline are your biggest assets

Just avoid unnecessary products and stay consistent

Work with a Certified Financial Planner

Don’t go for real estate just for returns

Focus on financial instruments that are transparent and liquid

Build a balanced portfolio with active fund strategies

Protect capital and take calculated growth risks

Use proper fund selection with professional hand-holding

Maintain a written financial plan with clear milestones.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 24, 2025Hindi

Money

I'm 31 years old and earning 2L per month. I have 17L car loan 9L home loan 6L on direct stock 5L on regular Mutual Fund 5L in PF And investing 50K in stocks monthly I want to retire by 50 with 3L monthly income. How should I plan my investing style and how to deal with the loans

Ans: Understand Your Current Financial Snapshot

Age: 31 years.

Income: Rs. 2 lakh per month.

Loans: Rs. 17 lakh car loan, Rs. 9 lakh home loan.

Assets: Rs. 6 lakh in stocks, Rs. 5 lakh in regular mutual funds.

Rs. 5 lakh in PF.

Rs. 50,000 invested monthly in stocks.

Retirement goal: Age 50 with Rs. 3 lakh monthly income.

You have good income and investment habits.
But your loan exposure is quite high.
Let's break this down step-by-step.

Re-evaluate the Loan Structure

Car loan of Rs. 17 lakh is too high.

Car is a depreciating asset, not wealth-building.

Try to reduce this loan in next 2 years.

Focus your bonuses or incentives here.

Home loan of Rs. 9 lakh is reasonable.

If interest is below 8.5%, continue it.

Keep a separate buffer for EMIs for 6 months.

Loan Management Approach

Don't prepay both loans together.

Prioritise the car loan for pre-closure.

Keep home loan alive for tax benefits till age 45.

Once car loan is over, redirect funds to SIPs.

Avoid top-up or personal loans now.

You Must Diversify Beyond Stocks

Rs. 50,000 monthly only in stocks is risky.

Direct stocks need skill, time, and patience.

Market correction can hit your portfolio hard.

Direct stocks also have no automatic asset allocation.

Emotional bias and overconfidence affect decisions.

You need diversification to reduce risk.

Restructure the Monthly Investment Pattern

Shift your monthly Rs. 50,000 as follows:

Rs. 25,000 to regular mutual funds via MFD and CFP.

Rs. 10,000 to PPF or EPF (voluntary contribution).

Rs. 10,000 in high-quality short-term debt mutual funds.

Rs. 5,000 can stay in direct stocks as satellite holding.

Avoid Index and Direct Mutual Fund Plans

Index funds don’t beat inflation consistently.

No downside protection in index investing.

Active funds have expert fund managers.

They rebalance as per market cycles.

Don’t go for direct plans even if cheaper.

No guidance, no handholding, no discipline in direct route.

Regular plan via MFD + CFP offers 360-degree support.

Target Asset Allocation for Your Case

Use this base allocation model:

55% equity (active mutual funds + some stocks)

25% debt (PF, PPF, short-term debt MFs)

10% gold (SGB or gold funds via MFD)

10% emergency and insurance

This offers stability and growth together.

Review Insurance and Emergency Planning

Check if you have Rs. 50 lakh term cover.

Ideal is 10–15 times of annual income.

Add Rs. 25 lakh health cover for family.

Avoid ULIP or endowment.

Avoid mixing insurance and investments.

Create Rs. 3 lakh emergency fund immediately.

Plan to Build Rs. 6 Cr by Age 50

To get Rs. 3 lakh income monthly post-retirement:

You need Rs. 6 crore wealth by age 50.

Rs. 3 crore in equity MFs for SWP.

Rs. 1.5 crore in debt for safety.

Rs. 50 lakh in gold and hybrid funds.

Rs. 1 crore in retirement accounts like PPF/EPF.

This will give you 6% to 8% withdrawal safety.

Use Step-Up SIP to Accelerate Growth

Every year, increase SIP by 10% to 15%.

Don’t stop during market crashes.

Stay invested for minimum 10+ years.

This builds compounding effectively.

Start Goal-Based Planning from Today

Break retirement into smaller goals.

Every goal should have a SIP bucket.

Retirement, child’s education, health, vacation.

All should be part of your investing blueprint.

Use MFD and CFP support to align funds per goal.

Avoid Emotional Investing Traps

Don’t chase trending stocks or IPOs.

Don’t time the market.

Don’t invest based on friend tips.

Don’t over-diversify either.

Keep 8 to 10 mutual fund schemes maximum.

Regular Mutual Fund Benefits via MFD + CFP

Portfolio review every 6 months.

Fund selection as per market changes.

Asset rebalancing done professionally.

Goal tracking and retirement projection.

Behavioural support during market falls.

You can’t get these benefits in direct plans.
That’s why direct plans often fail retail investors.

Build Your Own Retirement Freedom Bucket

From age 31 to 50, you have 19 years.

With disciplined SIPs, your Rs. 6 crore is achievable.

Split goals into 3 stages:

Short term: 0–3 years (emergency, insurance)

Mid term: 4–8 years (child education, travel)

Long term: 10+ years (retirement, wealth)

Include Tax Planning Within Investment Plan

Use ELSS for Section 80C benefit.

Use PPF as long-term tax-free debt.

Use SWP post-retirement for tax-efficient income.

Track LTCG rules for equity mutual funds:

LTCG above Rs. 1.25 lakh taxed at 12.5%

STCG taxed at 20%

Keep Reviewing and Adjusting Every 6 Months

Track your net worth twice a year.

Adjust asset allocation based on market.

Review fund performance regularly.

Don’t change based on short-term returns.

Stay invested for long-term goals.

Finally

You have income. You have time.

You just need disciplined execution.

Shift from stock-heavy to diversified SIPs.

Pay off your car loan faster.

Keep home loan if rate is low.

Use a certified financial planner for long-term direction.

Don’t follow DIY without proper guidance.

You can retire at 50 if you act wisely from now.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 24, 2025Hindi

Money

Im 39, father of 2 yr girl baby, started investing SSY from 2023 , MF INVESTMENT OF 163000 bought kishan vikas 2 lakh started RD from Apr 25 with monthly ecs of 10k. Started lic endowment @ Apr 2019 sum assured 35 lakh fir 26 years doing sip on PPFAS Flexicap 2000 sip UTI Nifty 50 3000 nippon largecap 1000 motilal midcap 1000 is this good for long term growrh child education & marriage , am i going in right direction

Ans: You have taken strong first steps. Starting early, being consistent, and having a clear purpose like child education and marriage are very important. Let us go through your situation from a full 360-degree view. This way you will know what’s going right and what needs change.

Your Current Profile at a Glance
Age: 39

Father of a 2-year-old girl

Started Sukanya Samriddhi Yojana (SSY) in 2023

Mutual Fund investment: Rs?1,63,000 (current value or total invested, not clear)

Kisan Vikas Patra: Rs?2,00,000

New RD: Rs?10,000 per month from April 2025

LIC Endowment: Started in April 2019

Sum assured: Rs?35 lakh

Tenure: 26 years

SIPs running:

Rs?2,000 in PPFAS Flexicap

Rs?3,000 in UTI Nifty 50

Rs?1,000 in Nippon Large Cap

Rs?1,000 in Motilal Midcap

Now let us assess each part carefully with an aim for long-term growth, child education, and marriage.

Assessment of SSY Investment
SSY is a strong option for girl child

Government-backed, tax-free interest

Invest till child is 15, withdraw at 21

Ideal for safe education or marriage funding

However:

Interest rate is not fixed

Currently around 8%

May not beat inflation always

Suggestion:

Keep investing till full limit every year (Rs?1.5 lakh per year)

Use this only for one goal: either education or marriage

For second goal, build corpus through mutual funds

Analysis of Mutual Fund Portfolio
You are investing across 4 mutual funds:

PPFAS Flexicap – Rs?2,000 SIP

UTI Nifty 50 – Rs?3,000 SIP

Nippon Large Cap – Rs?1,000 SIP

Motilal Midcap – Rs?1,000 SIP

Let us assess this mix carefully.

PPFAS Flexicap:

Flexicap funds give freedom to move between large, mid, and small cap

Good for long term and wealth creation

Your SIP here is useful

UTI Nifty 50:

This is an index fund

It only mirrors Nifty 50, no flexibility

Fails to protect during market crash

Gives no scope for active decision-making by fund manager

Nippon Large Cap and Motilal Midcap:

Large cap adds stability

Mid cap brings long-term growth

Together they give diversification

However:

Your investment is small and scattered

SIP amount is very low for long-term child goals

Rs?7,000 monthly SIP won’t build large enough corpus alone

More important point:

Avoid index funds like UTI Nifty 50

They don’t offer downside protection

They do not outperform actively managed funds in tough markets

Better to invest in active mutual funds through regular plans

Work with a Certified Financial Planner and MFD for guidance

Regular plans offer full tracking, review, and guidance

Direct mutual funds lack support.
If you invest directly, there’s no expert monitoring.
Returns may suffer due to wrong fund choice or market timing.
Stick to regular plans and review annually with a CFP.

LIC Endowment Policy Review
You mentioned a LIC endowment plan:

Started April 2019

Rs?35 lakh sum assured

Duration: 26 years

These types of policies are not ideal.
They mix investment and insurance.
They give poor returns (around 4% to 5% yearly).
They block your money for long time.
They lack flexibility and liquidity.

Suggestion:

Exit after 5 years, check surrender value

Use surrender amount in mutual fund or SSY

For insurance, take term insurance separately

Get coverage of Rs?1 crore or more

Keep insurance and investment separate always

Kisan Vikas Patra Investment
You have invested Rs?2 lakh in KVP.

Low risk, government-backed

Doubles your money in around 10 years

But low post-tax return

Not suitable for long-term wealth building

Better suited for short-term savings

Suggestion:

Don’t increase allocation to KVP

After maturity, shift this to mutual funds

Recurring Deposit Plan
You started RD of Rs?10,000/month from April 2025.

Useful for short-term needs

Low returns after tax

Doesn’t beat inflation

Suggestion:

Use RD for short-term goals only

Do not use for child education or marriage

After goal is reached, move funds into SIP

Ideal Plan for Child Education and Marriage
You have 2 clear goals:

Child’s education (age 18-22)

Marriage (age 24-26)

You have 15-20 years for both.
This is long enough to build corpus through equity mutual funds.

Ideal investment plan going forward:

Step up SIPs to Rs?15,000 per month

Allocate to 3–4 actively managed funds

Suggested mix:

Flexi-cap

Large & mid-cap

Mid-cap

Aggressive hybrid

Avoid index funds.

Avoid direct funds.

Invest through Certified Financial Planner.

Work with MFD + CFP to track annually.
They will switch funds when needed.
This ensures consistency and long-term growth.

Term Insurance and Health Cover
You did not mention term plan or health insurance.

Immediate action needed:

Take term insurance for Rs?1.5 crore or more

Keep tenure till child turns 25

Buy separate health cover for family

Minimum Rs?10 lakh floater cover

Add super top-up of Rs?10 lakh

Never depend only on company insurance.
These covers are essential for family security.

Build Emergency Fund
You did not mention any emergency fund.

Plan:

Save 6 months of expenses in liquid fund

Emergency fund is not for investing

Use only for job loss or medical shock

Ideal amount: Rs?3–4 lakh minimum

Build this in 3–4 months

Retirement Planning Angle
You are 39 now.
Retirement is 18–20 years away.
Start investing at least Rs?10,000/month for retirement now.
This should be in a different SIP, not mixed with child goals.

You need separate funds for retirement.
You cannot depend on children or government.
Start early to gain compounding.

Taxation Understanding for Mutual Funds
Equity fund rules:

LTCG above Rs?1.25 lakh taxed at 12.5%

STCG taxed at 20%

Debt fund rules:

LTCG and STCG taxed as per income slab

Plan redemption smartly with CFP support.
Review tax impact every year before withdrawal.

Finally
You are on the right path but need direction.
Your intentions are good.
But current investments need correction and structure.

Key actions now:

Increase SIPs to Rs?15,000–20,000 monthly

Avoid index funds and direct mutual funds

Exit LIC endowment policy after 5 years

Get term and health insurance

Build emergency fund

Allocate investments goal-wise (child education, marriage, retirement)

Review funds yearly with Certified Financial Planner

Don't over-depend on RDs, KVPs, or real estate

Consistency with discipline will help you succeed.
You still have 15–18 years to build wealth.
Use this time wisely with the right plan.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 24, 2025Hindi

Money

Hello Guru's, I seek your guidance on my financial planning. I'm 35 years old, and my in-hand income is Rs 1 lakh per month. After all the payments I am left with 15-20k by month end. My current financial situation: * Family: I have one child who is 3 years old, and we're expecting our second baby soon. * Provident Fund (PF & VPF): Rs 45 lakhs (VPF 20%). * Public Provident Fund (PPF): Rs 1.5 lakhs on yearly basis adding 60k (For child's college education). * Physical Gold: Rs 2 lakhs. * Insurance: * Term Insurance: Rs 1 crore. * Health Insurance: Covered by my company for the entire family. * Emergency Fund: Rs 4-5 lakhs in Fixed Deposits. * Real Estate: Three plots worth a total of Rs 25 lakhs. I'm planning to start investing Rs 10,000 per month in Mutual Funds and would greatly appreciate your suggestions on suitable funds or a strategy, especially considering my growing family and long-term goals. Given my current assets and future responsibilities, I'm looking for advice on: * Optimizing my current investments and savings. * Best mutual fund categories or specific funds to consider for my Rs 10,000 monthly investment. * Any other areas of financial planning I should focus on or adjust. Thank you for your time and valuable insights.

Ans: You are managing your finances well at 35 years.

But some key areas need better optimisation.

Let’s assess your finances from a 360-degree view.

Understanding Your Present Financial Strength
You earn Rs 1 lakh monthly in hand.

Your savings after expenses are around Rs 15,000–20,000 monthly.

PF and VPF corpus of Rs 45 lakh is strong.

PPF is being built steadily for your child’s education.

Emergency fund of Rs 4–5 lakh in FD is sufficient.

You hold Rs 2 lakh in physical gold. But it is not earning anything.

You own three plots worth Rs 25 lakh. Real estate is illiquid and non-earning.

Your family is growing, so financial needs will rise soon.

Problems with Your Current Asset Allocation
Too much is locked in real estate and PF.

Real estate has poor liquidity and no regular income.

PF is safe but grows slowly. It cannot beat long-term inflation.

PPF is also low-growth but useful for education.

Gold is idle unless converted into digital gold funds.

There is very little equity exposure, which limits long-term growth.

This can affect your retirement and children’s future goals.

Need for Diversified Wealth Creation
You must add equity mutual funds to your portfolio.

Equity brings better long-term growth and goal funding.

Actively managed mutual funds are the right choice.

Avoid index funds. Index funds copy markets but cannot beat them.

Index funds fall during market crashes with no protection.

Actively managed funds adjust portfolio as per market trends.

You must invest through regular plans, not direct funds.

Direct funds give no guidance or review.

Regular plans give you the help of an MFD and Certified Financial Planner.

Suggested Monthly Investment Plan
Start with Rs 10,000 monthly SIP in actively managed equity mutual funds.

Split this across flexi cap, mid cap, and small cap funds.

Start flexi cap first as it adjusts across market caps.

Increase your SIP by 10% every year.

Once your second child arrives, your expenses will rise.

But continue your SIPs without break.

Try to increase SIPs to Rs 20,000–25,000 when possible.

Review SIP allocation every year with your Certified Financial Planner.

Recommended Portfolio Diversification
Equity mutual funds: 50%–60% for growth.

Debt mutual funds: 15%–20% for safety.

Gold mutual funds: 5%–10% for diversification.

Emergency fund: 10% in liquid funds.

Physical gold and real estate are non-earning, so avoid adding more.

Child’s Future Planning
PPF is good for your child’s higher education.

But it alone may not be enough.

Start a separate SIP for each child’s education goal.

Rs 3,000–5,000 monthly for each child is ideal.

Invest this in equity mutual funds with 15–20 years horizon.

Increase this SIP every year by 10%.

Do not use real estate for child’s education. It is not liquid.

Emergency and Protection Planning
Emergency fund of Rs 4–5 lakh is good.

Keep 6–9 months of expenses in liquid funds.

Health insurance from your employer is fine now.

But take a personal health policy of Rs 10 lakh later.

This will protect your family if you leave your job.

Term insurance cover of Rs 1 crore is a good start.

Increase it to Rs 1.5 crore once your second child is born.

Real Estate Reassessment
You already own three plots.

These are not helping your wealth grow.

Do not buy more property for investment.

Property resale takes time and has low rental yields.

Instead, focus on liquid and growing assets like mutual funds.

When needed, sell one plot and reinvest in mutual funds.

Gold Holding Restructuring
Your Rs 2 lakh gold holding is fine.

No need to add more physical gold.

If you want, buy gold mutual funds instead of physical gold.

These are safer and easier to sell.

Optimising Provident Fund Savings
VPF contribution of 20% is conservative.

Reduce VPF to 12%–15% and use the extra savings for equity SIP.

VPF is safe but cannot beat equity returns over 20 years.

This shift improves your long-term corpus growth.

Regular Portfolio Review is Important
Review your SIPs and goals every 6 months.

Do not stop SIPs during market falls.

Rebalance between equity and debt regularly.

Use the help of a Certified Financial Planner for ongoing reviews.

Regular plan investors get this continuous support.

Direct plan investors do not get any guidance.

Important Areas to Focus in Future
Plan your retirement corpus now, not later.

You will need Rs 2 crore to Rs 3 crore for retirement.

Also plan for your second child’s education and marriage.

Your life insurance must protect your family’s future lifestyle.

Health insurance must cover you during job gaps or retirement.

Estimated Tax on Mutual Funds
Long-term capital gains above Rs 1.25 lakh taxed at 12.5%.

Short-term gains taxed at 20%.

Plan your withdrawals to minimise tax.

Keep debt fund gains in mind as per your income slab.

Certified Financial Planners help optimise these tax impacts.

Action Plan for the Next 12 Months
Start Rs 10,000 SIP in actively managed equity mutual funds.

Split between flexi cap, mid cap, and small cap categories.

Review your VPF and shift some savings to SIP.

Start a separate SIP for each child’s education.

Build your personal health insurance of Rs 10 lakh.

Increase your term insurance to Rs 1.5 crore post your second child.

Review real estate holdings and plan to sell one in 5–7 years.

Key Mistakes You Should Avoid
Do not invest in real estate again.

Do not stop SIPs due to expenses rising temporarily.

Do not mix insurance and investments.

Do not rely only on PPF and PF for wealth creation.

Do not keep large savings idle in FDs.

Avoid direct mutual funds as they offer no personal guidance.

How Certified Financial Planners Can Help You
They help you track your goals regularly.

They adjust your asset allocation in different market conditions.

They give you tax planning insights every year.

They help avoid emotional mistakes during market corrections.

They keep your investments disciplined and goal-focused.

Finally
You have a good base with PF, PPF, and emergency funds.

But your equity allocation is too low for your long-term goals.

Start Rs 10,000 SIP in actively managed equity mutual funds today.

Increase it yearly as income grows.

Do not add more real estate or physical gold.

Shift focus from saving to smart investing.

Review insurance and add a family floater health plan.

Plan your retirement and children’s future right from now.

Take help from a Certified Financial Planner for regular reviews.

Stay consistent and your long-term goals will be secured.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 24, 2025Hindi

Money

I am 31 years old. Monthly take home about 90000. Saving in epf about37lakh, in pension fund 26lakh(~8percent return) nps 10lakh, investing 2000,3000,25000,15000,10000 in 2 sip, epf pension fund, nps monthly.Want to retire by 45.

Ans: Understanding Your Current Financial Profile

Age: 31 years

Monthly take-home salary: Rs. 90,000

Retirement target age: 45

Current savings:

EPF corpus: Rs. 37 lakh

Pension fund: Rs. 26 lakh (returns ~8%)

NPS: Rs. 10 lakh

Monthly contributions:

SIP 1: Rs. 2,000

SIP 2: Rs. 3,000

EPF: Rs. 25,000 (likely including employer share)

Pension Fund: Rs. 15,000

NPS: Rs. 10,000

You are saving aggressively, which is great for early retirement.

Your Retirement Goal at 45: What It Involves

Retirement in 14 years (age 31 to 45)

No active income after age 45

You need income for 45+ years

Expenses will grow due to inflation

Goal needs careful planning and asset allocation

This is possible, but highly demanding.

Current Investment Allocation Review

EPF: Rs. 37 lakh + Rs. 25,000/month

Safe, long-term, fixed income instrument

Good for stability and corpus preservation

May not be liquid before age 55

Pension Fund: Rs. 26 lakh + Rs. 15,000/month

Giving around 8% return

Use this for post-60 support, not early retirement

Withdrawal rules may be restrictive

NPS: Rs. 10 lakh + Rs. 10,000/month

Locked till age 60

Partial withdrawal before 60 is limited

Not suitable for age 45 retirement corpus

SIPs: Rs. 5,000/month across 2 funds

Equity investments for long-term growth

Too small for early retirement

Needs scaling up significantly

You are saving a lot, but most is in locked assets.

Why You Must Rethink EPF, Pension, and NPS

EPF, NPS, Pension are excellent for normal retirement age

Early retirement at 45 needs liquidity and flexibility

You cannot rely on these for first 10-15 retirement years

Consider these as long-term support after age 60

Build a separate corpus just for age 45 to 60

Required Corpus to Retire at 45

You will need income for 45+ years

Even at modest expenses, this is a big challenge

You need Rs. 50,000 to Rs. 75,000/month at least

Including inflation, need Rs. 1.5 crore to 2 crore corpus by 45

This is for age 45 to 60 only

And you need another Rs. 3 to 4 crore for 60 to 90 years

Restructure Your Investment Approach

Shift monthly investments to liquid, flexible assets

Reduce EPF and pension share

Increase mutual fund SIPs aggressively

Add more equity exposure in actively managed funds

Avoid direct stocks unless you have deep knowledge

You need 60% to 70% equity in your portfolio for next 10 years

Why You Must Avoid Index and Direct Funds

Index funds copy market blindly

No protection in falling markets

No chance of outperformance

Cannot adjust sector or stock mix

Direct funds offer no support or advice

You cannot manage emotions or rebalancing alone

Use regular plans via MFD with Certified Financial Planner

Create a Tiered Retirement Structure

Tier 1: Corpus for age 45 to 60

Target: Rs. 2 crore minimum

Instruments: Mutual funds with equity tilt

Keep 2 years expenses in liquid funds

Tier 2: Corpus for 60 onwards

Use EPF, Pension, and NPS

Don’t touch before 60

This layered approach gives clarity and sustainability

Suggested Monthly Investment Strategy

SIP in 3 to 4 actively managed funds: Rs. 35,000/month

Liquid fund/ultra short-term fund: Rs. 5,000/month

Reduce EPF and pension to legal minimum

Stop increasing locked-in contributions

Channel surplus towards liquid and equity growth funds

Monitor and Review Regularly

Review every 6 months with Certified Financial Planner

Rebalance equity and debt ratio

Avoid over-exposure to any one asset class

Increase SIPs as salary grows

Keep emergency fund of 6 months ready

Build both discipline and flexibility in portfolio

MF Taxation Rules to Remember

Long-Term Capital Gains (LTCG) above Rs. 1.25 lakh taxed at 12.5%

Short-Term Capital Gains (STCG) taxed at 20%

Debt funds taxed as per income tax slab

Plan redemptions to reduce tax impact after age 45

Additional Precautions

Don’t buy ULIP or traditional insurance products

Don’t take early exit from NPS or EPF

Avoid annuities and retirement plans with lock-ins

Don’t use index funds for core portfolio

Never stop SIPs in a market correction

Stick with simple, guided, goal-based investing

Finally

Early retirement at 45 is possible for you

But it requires shift from locked to liquid investments

Mutual funds should be your main tool

Use regular funds with proper advisory support

Separate your short and long retirement goals

SIP aggressively in equity with 10+ year view

Keep discipline, avoid emotional mistakes

This will help you retire early and stay retired peacefully

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 24, 2025Hindi

Money

Anu mam, I am in a bad dilemma. I am 36, married with a 8 year old son. I reluctantly stay with my in-laws who live in a property registered in my brother in law's name. We have been here for the past 10 years. Recently I discovered that my husband is not even a nominee in the property. He has been spending on house repairs, paying maintenance all these years and taking care of the parents as well. My brother-in-law enjoys his freedom and lives separately in his own luxury flat with his wife and kid. Last year, I invested all my savings and booked a flat in my name. My husband didn't support me financially. I don't expect my husband to stay with me because all these years, I have noticed that he doesn't want to listen to my side of the story. My in-laws have been controlling my husband finding ways to keep us emotionally tied to the house. I am surprised why my husband wants to live and spend his life maintaining his brother's property instead of supporting me?

Ans: Understand the Current Family and Financial Setup

You live in a house owned by your brother-in-law.

Your husband is not a nominee or owner of that house.

Your husband has been spending on repairs and maintenance there.

Your in-laws emotionally control him and influence his choices.

You are married with an 8-year-old son.

You bought a flat from your savings in your name.

Your husband didn’t support that financially.

You feel emotionally isolated and unsupported.

You Have Taken a Bold Financial Step

Buying a house with your own money is a powerful step.

You did this without expecting support from your husband.

This gives you future stability and freedom.

You should feel strong and proud about this decision.

Analyse the Risks of Staying in Someone Else’s Property

The house belongs to your brother-in-law.

Your husband has no ownership or legal right there.

Any money spent on that house gives no return to your family.

Your brother-in-law can legally ask you to vacate anytime.

It offers no protection to you or your son.

Emotional Attachment is Not a Financial Asset

Your husband is emotionally tied to his parents.

He may feel responsible to stay and take care of them.

That emotional decision is costing your family financially.

You and your son deserve security and future clarity.

You Need to Prioritise Financial Independence Over Family Pressure

Financial security should come before emotional pleasing.

You are already handling your finances more wisely.

Your flat will build equity over the years.

This ownership gives you power and voice in the long term.

Identify Why Your Husband Acts This Way

He may feel trapped by guilt, duty, or family manipulation.

He may not realise that he’s risking your family’s future.

In many Indian homes, emotional loyalty replaces logic.

He may avoid confrontation and live under family control.

Your Financial Role Deserves Recognition

You funded a home alone.

You manage finances without help.

You think long term and want stability.

This mindset will help you plan your son’s future.

Now Focus on the Next Steps Carefully

Step 1: Secure Your Property Legally

Make sure your flat is fully registered in your name.

Keep loan EMIs and receipts well documented.

Add nomination details in case of emergency.

You must have legal control over this asset.

Step 2: Start Building a Financial Portfolio

Now you must plan beyond the flat.

Create an emergency fund for 6 months of expenses.

Take term insurance for yourself and your son’s security.

Buy a family floater health policy if not already done.

Step 3: Start SIPs for Long-Term Wealth

Begin SIPs in actively managed mutual funds.

Don’t invest in direct plans.

Use a CFP and trusted MFD to guide.

Avoid index funds. They don’t protect in down markets.

You need professional-managed funds for peace of mind.

Avoid These Investment Mistakes

Don’t buy insurance policies that mix investment.

Don’t fall for traditional plans with low returns.

Don’t take real estate as your only investment.

Don’t keep too much idle cash in savings account.

Don’t follow online tips blindly without full planning.

Take Action Based on Your Role as a Mother

Your son must have a stable emotional and financial future.

For that, you need clarity and courage today.

Don’t let family manipulation ruin your planning.

Start a child education SIP right now.

Think about your own retirement plan also.

Create a Boundary with Your Husband’s Financial Choices

Don’t fund or support any expenses on your in-law’s house.

Don’t allow your savings to go for their property.

Keep your investments separate and in your control.

Discuss shared responsibilities only when mutual respect is there.

Family Counselling May Help if You Are Open

A trained counsellor can break old emotional patterns.

Your husband may realise the cost of his choices.

A third-party view often brings clarity in such issues.

Consider this if communication is currently blocked.

Make a Will for Your Property

Even if you’re young, make a simple will now.

Nominate your son as the legal heir.

This prevents any future dispute or interference.

Your savings and house should stay safe for your child.

You Are Already Ahead Financially

Most women delay property purchase or savings.

You acted independently and planned ahead.

Continue with SIPs, insurance, and low-risk debt options.

Don’t panic during market ups and downs.

Your Future is in Your Hands, Not Your Husband’s

You can’t change your husband’s past choices.

You can change how you move forward.

Emotional freedom comes from financial clarity.

Build your life around what you control.

Don’t wait for others to approve or support.

Finally

You are financially stronger than you think.

Avoid joint investments with your husband now.

Focus on protecting your house, savings, and child.

Cut emotional losses and strengthen legal rights.

Stay calm and focus on step-by-step action.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Question by Samiran - Jun 22, 2025Hindi

Money

Hi, I am 35 years old and married. I have a monthly income of 2.02 lacs after tax deduction and rental income of around 32.5k from my own house which is worth 1 crore now approcimately. I stay at my parents house and hence do not have to pay any rent. I have a home loan running of around 7.5 lacs outstanding and personal loan of around 2.5 lacs. Due to a family emergency last year, I have depleted all savings and emergency funds. I do not have any investment or savings as of now. We are also planning for a child in the next year. How do i plan to have 0 debt at the earliest and start investing from here onwards so that I can retire by the age of 50-52. My current monthly household expenses are around 60k.

Ans: You’ve begun fresh after a setback and have clear goals. That shows resilience and discipline. Let’s work through your roadmap in a complete, practical manner so you reach debt?free status and build financial freedom by age 50–52.

Your Immediate Context
You are 35 years old and married.
Take-home income is Rs?2.02?lakh/month.
Rental income adds Rs?32,500/month.
Living with parents, so no rent expense.
You have a home loan of Rs?7.5?lakh and personal loan of Rs?2.5?lakh.
Your monthly household costs are Rs?60,000.
You have no savings or investments currently.
You plan to have a child next year.

Your priority is clear:

Build emergency and child funds

Eliminate debt quickly

Start systematic investing

Aim for retirement by age 50–52

Step 1 – Rebuild Emergency Savings
Without emergency funds, you risk debt again.
Build 6 months of household expenses first.
Target: Rs?5 lakh (Rs?60,000 * 6 + buffer).
You’ll need this before investing or debt repayment.

Use rental income and surplus cash flow to fund this.
Monthly savings after expense:
– Income: Rs?2.52 lakh (salary + rent)
– Expenses: Rs?60,000
– Net surplus: Rs?1.92 lakh

Allocate this surplus immediately.

Step 2 – Debt Repayment Strategy
Debt cleared means financial freedom.

Your total debt: Rs?10 lakh (home + personal).

You can repay fully within a few months because of surplus funds.

Plan:

First 2–3 months: clear personal loan of Rs?2.5 lakh

Next 4–5 months: clear home loan of Rs?7.5 lakh

You could pay off both in under 8 months

After debt-free:

You keep monthly loan EMI capacity (~Rs?25,000) free

This frees up room for savings and child planning

Step 3 – Health and Life Insurance
Before investing, secure your health and income risk.

Get a family floater health cover of at least Rs?10 lakh

Add a super top-up of another Rs?10–15 lakh to cover serious illnesses

Ensure coverage for both you and spouse

For life cover:

Get term insurance worth Rs?1–2 crore each

This protects your wife and future children

Buy through a Certified Financial Planner for guidance and bundle benefits.

Step 4 – Child Planning Fund
You plan a child next year, so you need medical and planning fund.

Allocate Rs?3 lakh separately for prenatal and early life care.

Invest in a liquid or ultra-short-term debt mutual fund or recurring deposit.

Keep it aside and do not touch it for other goals.

Step 5 – Investment Plan Post Debt-Free
Once debt is cleared and emergency fund is built, it is time to invest.

You will have a free surplus of around Rs?1.92 lakh monthly.

After child expense set-aside, you can invest about Rs?1.35 lakh/month:

Rs?25,000 per month towards investing in mutual funds

Rs?10,000 monthly contingency buffer

Additional SIP of Rs?80,000/month for retirement and future goals

Step 6 – Asset Allocation for Retirement
Since you’re 35 and aiming to retire at 50–52, your investment strategy must combine growth with some safety.

Suggested mix:

Large/Flexi?Cap Funds ~40% of equities

Mid/Small?Cap Funds ~30% (for growth)

International Equity Funds ~10% (for diversification but not excessive)

Hybrid/Balanced Advantage Funds ~20% (for stability)

Avoid index funds—they mirror the market with no downside protection.

Also avoid direct plans—they give no advisory help. Regular plans with MFD + CFP give guidance, reviews, and risk control.

Step 7 – SIP Investment Strategy
With Rs?80,000 allocated monthly, you could set up:

Flexi?cap fund – Rs?25,000

Mid?cap fund – Rs?15,000

Small?cap fund – Rs?10,000

Large?cap fund – Rs?10,000

International fund – Rs?8,000

Balanced hybrid fund – Rs?12,000

These SIPs, over 15–17 years, should build a substantial retirement corpus.

Review allocation annually and adjust with income inflation and life needs.

Step 8 – Corpus Requirement by 50–52 Years
To retire at age 50–52 (15–17 years from now), you must build corpus to fund lifestyle and future needs.

Estimate:

Monthly household need: Rs?1 lakh (including inflation buffer and child education)

Annual need: ~Rs?12 lakh

Withdrawal rate: Use conservative 3.5?4% rule

You need a corpus of Rs?3–3.5 crore by retirement age.

Your SIP plus market growth (10–12% CAGR) over 15 years can help reach this target.

Step 9 – Emergency & Contingency Even After Retirement
Never dip into retirement funds for emergencies.
After retirement, keep 1 year of living expenses liquid.

Keep easy access funds or hybrid debt instruments for emergency needs.

Step 10 – Annual Portfolio Monitoring
Review your investments and allocation every year

Use a Certified Financial Planner

Rebalance as needed

Keep investing as per inflation and life changes

Monitor tax and withdrawals

Avoid These Mistakes
Don’t keep excess money in bank or recurring deposits

Don't hold index funds—no risk mitigation

Don’t go for direct plans—they lack expert support

Don’t use investment cum-insurance products

Avoid taking new debt while investing

Don’t adjust SIPs based on short-term market noise

Final Insights
You’ve taken strong steps to rebuild after a difficult phase.
With systematic debt repayment, insurance, savings, and investing, retiring by 50–52 is achievable.
Use a 3-layered structure:
Emergency → Debt-free → Retirement SIPs
By investing Rs?80,000/month via regular mutual funds, you can build ~Rs?3 crore corpus.
Stay disciplined with investment and annual reviews to secure your family’s future.

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

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jun 22, 2025Hindi

Money

Meri umr 40 versh hai mera nps me 10000 rs per month or Tata aia smart suracha me 10 k per month or 10 k per month Bajaj Allianz future gain or ppf me 10 k per month jata hai mujhe 60 year ke bad 1 lak per month pention chaiye hai mujhe uske liye kya karna chaiye

Ans: Your savings habit is good but your plan needs some important changes.

Let me explain your situation step by step.

Understanding Your Current Investments
You are 40 years old with 20 years to retirement.

Your NPS contribution is Rs 10,000 monthly. This is a good start.

Tata AIA Smart Suraksha is an insurance product. This does not grow wealth.

Bajaj Allianz Future Gain is a ULIP. This has high charges and low flexibility.

PPF is safe but gives low long-term returns.

Right now, your portfolio is not growth-focused enough.

Insurance products and PPF cannot alone build your retirement corpus.

Life Insurance Policies Are Not Right for Retirement
Smart Suraksha is protection, not investment.

Future Gain is a ULIP with mixed protection and poor returns.

ULIPs and insurance plans lock your money for long years.

Their charges reduce your long-term returns.

You need to surrender these policies and invest in equity mutual funds.

Only term life insurance is required, nothing else.

Term plans give better life cover at lower costs.

A Certified Financial Planner can help you exit these policies safely.

PPF Alone Cannot Build Wealth
PPF gives you around 7% yearly returns.

This is safe but not enough to beat inflation.

For a 20-year retirement goal, equity mutual funds work better.

Keep PPF for safe savings but reduce it to Rs 5,000 monthly.

Shift the balance Rs 5,000 monthly to equity mutual funds.

NPS is a Good Tool but Not the Only One
NPS has good tax benefits and retirement focus.

But NPS equity exposure is capped.

NPS alone cannot give you Rs 1 lakh pension.

Continue Rs 10,000 monthly in NPS.

But build a separate equity mutual fund portfolio too.

Mutual funds give better flexibility and growth.

How Much Corpus You Need at 60 Years
For Rs 1 lakh monthly pension, you need a big corpus.

You must target Rs 2 crore to Rs 2.5 crore minimum.

Insurance policies and PPF will not create such a big corpus.

Equity mutual funds are your best option for this goal.

Actively managed funds give better growth than index funds.

Index funds do not protect during market falls.

Active funds adjust the portfolio according to market trends.

Invest through regular funds with a Certified Financial Planner.

Direct funds give no personal support or review.

Regular plans help you review and rebalance regularly.

Recommended Monthly Investment Plan Now
Stop Tata AIA Smart Suraksha premiums immediately.

Surrender Bajaj Allianz Future Gain and recover the available amount.

Invest this recovered amount into mutual funds as lumpsum.

Continue Rs 10,000 monthly NPS investment.

Continue Rs 5,000 monthly in PPF only for safety.

Start Rs 15,000–20,000 monthly SIP in equity mutual funds.

Increase SIP by 10% every year.

As income increases, raise SIPs to Rs 30,000–35,000 monthly.

A Certified Financial Planner can help allocate funds into flexi cap, mid cap, small cap.

Diversify Your Portfolio for Balanced Growth
Put 70% into equity mutual funds for growth.

Put 15% into debt mutual funds for safety.

Put 10% into gold funds for inflation protection.

Keep 5% in liquid funds for emergencies.

Stop mixing insurance and investments.

Keep insurance separate as a pure term plan.

Investments should only be in mutual funds and NPS.

Protecting Yourself with Correct Insurance
Buy a term insurance plan of Rs 1 crore.

Cancel all investment-cum-insurance policies.

Take health insurance cover of Rs 10–15 lakh individually.

This protects your family and retirement corpus.

Do not depend on employer insurance alone.

Expected Retirement Corpus if You Start Now
If you invest correctly, you can build a Rs 2–2.5 crore corpus.

This is possible if you stay invested for the next 20 years.

Regular review and SIP increase is needed.

No gaps or breaks in investment should happen.

Avoid withdrawing from mutual funds till retirement.

How to Get Rs 1 Lakh Monthly Pension at Retirement
From Rs 2.5 crore, withdraw around 4–5% yearly.

This gives Rs 1 lakh monthly income after retirement.

Use mutual fund SWP plans for monthly withdrawals.

NPS pension can also add around Rs 20,000–30,000 monthly.

Together, these give you around Rs 1 lakh monthly.

Certified Financial Planners help set up this withdrawal.

Regular Review is Very Important
Review your portfolio every 6 months.

Adjust SIPs as per market and income changes.

Regular plans through an MFD and CFP help with reviews.

Direct funds and online platforms do not offer such support.

Certified Financial Planners help optimise tax and portfolio growth.

Taxation of Mutual Fund Withdrawals at Retirement
Equity fund LTCG above Rs 1.25 lakh taxed at 12.5%.

Short-term capital gains taxed at 20%.

Debt fund gains taxed as per your income slab.

Plan withdrawals to minimise tax.

Do not redeem entire corpus at once.

Withdraw monthly using Systematic Withdrawal Plan (SWP).

This protects your retirement corpus from sudden tax hit.

What Actions You Must Take Immediately
Stop all investment-cum-insurance policies.

Start equity mutual fund SIP of Rs 15,000 to Rs 20,000 monthly.

Increase your health cover and take term insurance.

Review investments with a Certified Financial Planner.

Avoid real estate or annuity plans as they block money.

Stay invested for next 20 years without stopping SIPs.

Common Mistakes You Should Avoid
Do not keep investing in insurance products.

Do not withdraw from mutual funds for lifestyle expenses.

Do not pause SIPs during market falls.

Do not mix retirement and short-term goals.

Avoid depending only on NPS and PPF.

Stop chasing short-term market trends.

Retirement Planning Needs Discipline and Patience
Start SIP today and stay consistent for 20 years.

Reinvest yearly bonuses and salary hikes.

Avoid luxury expenses that block your future savings.

Review your goals every year.

Track whether your investments are matching your retirement target.

Building the Right Portfolio With Time
First 10 years should focus fully on growth.

Next 5 years balance growth and safety.

Final 5 years shift more into debt and liquid funds.

This protects your corpus before retirement.

Your Certified Financial Planner helps adjust your asset mix.

Finally
You have started with NPS and PPF.

But insurance plans are blocking your growth.

Stop them and shift to equity mutual funds.

Start regular plan mutual fund SIPs through an MFD with CFP support.

This will build your retirement corpus over the next 20 years.

Equity mutual funds give long-term growth and flexibility.

NPS gives pension but is not enough alone.

PPF gives safety but not high returns.

Certified Financial Planners help you review and adjust this journey.

Stay disciplined and you will achieve your Rs 1 lakh monthly retirement income goal.

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

Radheshyam Zanwar |4672 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jul 03, 2025

Question by Kanthiah - Jul 03, 2025Hindi

Career

Hi sir. My daughter got CSE in sastra and CCE in amritha coimbatore. Which is best to choose. I heard that CCE is tougher than CSE.

Ans: Hello Kanthiah,
Don't always trust what others say. Prefer CSE @ Sastra if possible. The final decision will be yours.
Good luck!
Follow me if you like this reply. Thanks!
Radheshyam

Ramalingam Kalirajan |9358 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Question by Singing - Jun 22, 2025Hindi

Money

Hi, I am 48 year old. Want to retire by 54. Current investment EPF: 1.4 Cr, PPF: 18 L, SIP: 50 L, Sukanya: 16 L, Stocks: 16 L, NPS: 12 L, Superannuation and Gratuity: 47 L, Emergency fund: 3L, Monthly investment: 1.7 L (81k in EPF, 8 K in PPF, 60K SIP, 12.5K Sukanya, 10k NPS) Gools: Retirement income: 1.5 L per month at 54 growing 5% annually Daughters education in 10 years: 30 L Daughters marriage in 20 years: 50 L Annual travel fund: 6 L per year till 75 Please let me know if I am all set to retire at 54. Also suggest funds for SWP

Ans: Your clarity is rare. Your retirement goal is realistic. But it still needs careful calibration. Below is a detailed and 360-degree financial analysis and retirement readiness evaluation.

Your Current Financial Position
Age: 48

Retirement Target: 54

Monthly Target Post-Retirement: Rs. 1.5 lakh (growing 5% annually)

Current Assets:

EPF: Rs. 1.4 crore

PPF: Rs. 18 lakh

Mutual Fund SIPs: Rs. 50 lakh

Sukanya Samriddhi: Rs. 16 lakh

Direct Stocks: Rs. 16 lakh

NPS: Rs. 12 lakh

Superannuation + Gratuity: Rs. 47 lakh

Emergency Fund: Rs. 3 lakh

Monthly Investments:

EPF: Rs. 81,000

PPF: Rs. 8,000

SIPs: Rs. 60,000

Sukanya Samriddhi: Rs. 12,500

NPS: Rs. 10,000

Other Goals:

Daughter’s education in 10 years: Rs. 30 lakh

Daughter’s marriage in 20 years: Rs. 50 lakh

Annual travel fund: Rs. 6 lakh per year till age 75

You have 6 years until retirement.

Assessing Your Investment Allocation
EPF: Rs. 1.4 crore + Rs. 81,000/month

Very strong foundation.

Safe, predictable, and gives regular interest.

Should not be withdrawn early.

PPF: Rs. 18 lakh + Rs. 8,000/month

Good long-term fixed income tool.

Cannot be withdrawn before 15 years fully.

Keep it for daughter’s education or marriage.

Mutual Fund Corpus: Rs. 50 lakh + Rs. 60,000/month SIP

This is your most flexible and high-return segment.

Will form core of your retirement income.

Well diversified and liquid.

Sukanya Samriddhi: Rs. 16 lakh + Rs. 12,500/month

Excellent for daughter’s marriage or education.

Locked till age 21 of daughter.

Let it compound peacefully.

Direct Stocks: Rs. 16 lakh

High-risk component.

Keep exposure at 10–15% of overall corpus.

Do not increase this allocation further.

NPS: Rs. 12 lakh + Rs. 10,000/month

Good for retirement corpus build-up.

Keep it going until age 60.

Don’t rely only on annuity later.

Superannuation and Gratuity: Rs. 47 lakh (expected)

Mostly receivable at retirement.

Useful for building corpus for SWP.

Treat it as base capital.

Emergency Fund: Rs. 3 lakh

Slightly low for your profile.

Build it to Rs. 6 lakh before retiring.

Your Retirement Corpus Projection by Age 54
Assuming 6 more years of accumulation:

EPF will continue to grow via Rs. 81,000/month + interest.

PPF will grow modestly with Rs. 8,000/month.

SIP of Rs. 60,000/month will build a substantial equity base.

NPS will grow but only partly liquid at retirement.

Sukanya and PPF will support daughter’s goals.

Stocks may grow, but also carry risk.

Gratuity and Superannuation will add a solid buffer.

You are likely to cross Rs. 3.75 to 4.25 crore net investible corpus by 54.

This excludes Sukanya and partly NPS.

That is a strong base.

Will Rs. 1.5 Lakh Per Month Be Possible?
Rs. 1.5 lakh/month equals Rs. 18 lakh/year.

You want this for 21 years (age 54 to 75).

Growing at 5% annually to beat inflation.

Plus Rs. 6 lakh/year for travel till age 75.

Total Retirement Outflow Target:

Around Rs. 25 lakh per year for 21 years.

That needs a withdrawal-ready corpus.

At 6–7% post-tax returns, your capital needs to be Rs. 3.5–4 crore.

Your projected corpus matches this need.

Hence, retirement at 54 is possible.

But with careful implementation and rebalancing.

Managing Your Withdrawal Strategy After 54
Do not withdraw lump sum.

Use SWP (Systematic Withdrawal Plan) smartly.

Choose mix of debt and equity mutual funds.

Withdraw only from regular funds, not direct plans.

Why not direct plans:

They don’t offer personal tracking or rebalancing help.

Most investors in direct funds don’t review regularly.

No human support in market downturns.

Regular plans via MFD with CFP guidance help in behaviour control.

You need that discipline post-retirement.

Why You Must Not Use Index Funds
Index funds only copy the index.

No decision-making ability in changing market cycles.

No protection in market crashes.

No scope to outperform benchmark.

Actively managed funds provide risk control and tactical allocation.

You need this flexibility in retirement phase.

Hence, only use actively managed mutual funds.

Suggested SWP Execution Plan
Divide corpus into 3 parts: Income, Growth, and Buffer.

Income part in hybrid or conservative funds.

Growth part in flexi-cap and large-cap funds.

Buffer in liquid funds for 6–12 months expenses.

Start SWP from hybrid or income funds first.

Rebalance annually to adjust risk.

Use SWP to withdraw Rs. 2–2.25 lakh/month (to cover travel also).

This gives you safety, growth, and liquidity.

Managing Taxation Under New Rules
LTCG above Rs. 1.25 lakh is taxed at 12.5%.

STCG taxed at 20%.

Debt funds taxed as per your income slab.

You must manage redemptions smartly to reduce tax.

Take help from MFD with CFP support to do this right.

Strategy for Daughter’s Education and Marriage
Education in 10 years:

Use PPF and part of SIP corpus.

Don’t use retirement corpus.

Marriage in 20 years:

Sukanya and PPF can be used here.

Continue Sukanya till maturity.

Don’t compromise your retirement for these goals.

Prioritise your cash flow.

Travel Fund Planning
Rs. 6 lakh per year means Rs. 50,000/month extra.

Add this to SWP corpus calculation.

You may create a separate fund only for travel.

Use balanced advantage funds for this segment.

Withdraw annually.

Let your travel dreams continue even after retirement.

Insurance and Risk Management
At 54, buy long-term health cover.

Keep Rs. 10–15 lakh family floater.

Buy critical illness cover till age 65.

Term insurance not needed post 54.

Keep nomination and WILL updated.

Reduce all risks around income and legal matters.

Other Points to Monitor
Avoid business or real estate investment after 54.

Focus only on wealth preservation and income generation.

Don’t invest in annuities or traditional insurance policies.

Track all investments via consolidated MFD dashboard.

Review your SWP once a year.

Include spouse in all planning decisions.

Finally
Your plan is well thought out.

Your assets and SIPs are strong.

You can retire at 54 with confidence.

Maintain discipline in withdrawal and fund selection.

Avoid direct and index funds.

Use regular plans with MFD guided by Certified Financial Planner.

Focus on income generation, not return chasing.

Maintain travel and lifestyle fund separately.

Rebalance your portfolio every year post-retirement.

You are on track for a peaceful, financially independent retirement.

Best Regards,

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

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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