Hi My current SIP amount Rs97500. My current financial assets worth PMS scheme=110lac My personal stock portfolios =48.87 My mutual fund portfolio =50lac FD and savings account =15lac Term insurance= 1cr pure term+ 1cr ULIP Health...

Hi My current SIP amount Rs97500. My current financial assets worth PMS scheme=110lac My personal stock portfolios =48.87 My mutual fund portfolio =50lac FD and savings account =15lac Term insurance= 1cr pure term+ 1cr ULIP Health insurance =15 lac+ 10lac(star &care) Rental income =53000rs per month Every month i can save 3lac after my expenses pls guide me where to invest the remaining 3lac...Myself NRI age 42working in middle Eastern country surviving with 2kids 10thstd+8th std..

Ans: You are 42 years old.

You are working in a Middle Eastern country.

You have two children in 10th and 8th standard.

Monthly income allows you to save Rs. 3 lakhs.

You are already investing Rs. 97,500 in SIPs.

Your total financial assets include:

PMS investments: Rs. 1.10 crore

Personal stock portfolio: Rs. 48.87 lakhs

Mutual fund portfolio: Rs. 50 lakhs

FD and savings: Rs. 15 lakhs

Rental income: Rs. 53,000 per month

Insurance:

Term insurance: Rs. 1 crore

ULIP: Rs. 1 crore

Health insurance: Rs. 15 lakhs (Star) + Rs. 10 lakhs (Care)

Let us now build a 360-degree strategy for the surplus Rs. 3 lakhs monthly.

Emergency Fund Planning
Maintain 12 months of total expenses as emergency fund.

Include school fees, household spends, travel costs, etc.

Rs. 25–30 lakhs can be parked as emergency reserve.

Use ultra-short debt mutual funds or sweep-in fixed deposits.

Ensure this money is highly liquid and safe.

Emergency fund gives mental comfort during uncertainty.

You may already have some allocation here from FDs.

Reassess and top up if needed.

Review and Reallocate ULIP
ULIP often has higher charges than mutual funds.

Returns also depend on insurance company performance.

These products combine investment with insurance.

Mixing both is not an efficient way to grow wealth.

If ULIP is not recent, assess current surrender value.

If ULIP performance is weak, consider surrender.

Redeploy proceeds into mutual funds via monthly STP.

This improves transparency, flexibility and performance tracking.

Mutual Fund Expansion
You are already investing Rs. 97,500 monthly in SIP.

Increase mutual fund SIP to Rs. 2 lakhs monthly.

Choose mix of large cap, multi cap, mid cap funds.

Use actively managed funds via Certified Financial Planner.

Avoid index funds due to these reasons:

No downside protection during market fall

No active rebalancing

Rigid allocation with no flexibility

Underperformance during sideways markets

No fund manager intelligence in stock selection

Actively managed funds help generate alpha over index.

They allow periodic fund review and course correction.

Invest through regular plans via qualified professionals.

Avoid direct funds unless you have full-time expertise.

Regular funds offer human support, reviews, discipline.

PMS and Stocks Evaluation
Rs. 1.10 crore in PMS is significant.

Ensure PMS is benchmarked and evaluated yearly.

Look for consistency and reasonable risk profile.

Some PMS schemes have higher drawdowns.

Discuss risk appetite with your Certified Financial Planner.

Similarly, your stock portfolio is Rs. 48.87 lakhs.

Review holdings for concentration and duplication.

Avoid investing fresh money in direct stocks now.

Instead, shift focus to mutual funds for safer diversification.

Children’s Education Corpus Planning
Higher education for 2 children in next 5–8 years.

Target corpus should be Rs. 60–80 lakhs.

Allocate Rs. 40,000–50,000 monthly for this goal.

Use a dedicated mutual fund with balanced exposure.

Choose moderate-risk funds to avoid volatility.

Rebalance yearly as goal approaches.

Shift to ultra-short debt funds two years before use.

This ensures safety from market downturn.

Retirement Planning Focus
You are currently 42.

Retirement target should be Rs. 6–7 crore corpus minimum.

Allocate Rs. 50,000 monthly for this goal.

This can be via actively managed mutual funds.

Include large cap and flexi cap funds for long term.

Plan to continue till age 55 or beyond.

Track this goal annually with performance reports.

Don't rely on property sale or pension alone.

Focus on creating a liquid retirement corpus.

Monthly Surplus: Recommended Allocation
Rs. 3 lakh surplus should be split as follows:

Rs. 2 lakh in mutual fund SIP (active, regular plans)

Rs. 50,000 for education corpus (goal-based funds)

Rs. 50,000 towards retirement portfolio

Review allocations annually with a Certified Financial Planner.

Rebalance based on asset performance and goals.

Taxation Considerations
New capital gains tax rule applies:

For equity mutual funds:

LTCG above Rs. 1.25 lakh taxed at 12.5%

STCG taxed at 20%

For debt mutual funds:

Both LTCG and STCG taxed as per income slab

ULIP maturity is tax-free only if premium is below cap.

FDs are taxable at slab rate.

Stocks attract STT and capital gains taxes.

Keep detailed record of transactions and redemption years.

Plan systematic withdrawals for tax efficiency.

Insurance Assessment
Term insurance of Rs. 1 crore is good.

You may increase to Rs. 2 crore based on liability.

ULIP insurance should not be part of your coverage.

Health insurance Rs. 25 lakhs combined is decent.

Ensure it covers NRI and India both if needed.

Add global health cover if settling abroad later.

Real Estate: No More Exposure Suggested
You already have rental income from existing property.

Do not add more real estate.

Avoid tying more money into illiquid assets.

Focus on market-based, liquid financial instruments.

Risk Management Tips
Maintain a clear goal-wise investment structure.

Set up SIPs in different goals to track separately.

Monitor PMS and stock volatility quarterly.

Use automatic STP from liquid fund to equity fund.

Don’t chase high returns or unregulated investments.

Avoid peer-to-peer lending and crypto assets.

Discuss investment changes only with a Certified Financial Planner.

Finally
Your financial base is strong and structured.

With Rs. 3 lakh monthly surplus, you are in a powerful position.

Prioritise long-term goals like education and retirement.

Avoid over-concentration in direct stocks or PMS.

Grow your mutual fund SIP and link to goals.

Eliminate underperforming products like ULIPs if needed.

Let your Certified Financial Planner review your total portfolio annually.

Focus on liquidity, diversification, and simplicity in all decisions.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Asked on - Jun 05, 2025 | Answered on Jun 05, 2025

Thank you very much sir

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You have done a great job building a strong foundation. A take-home salary of around Rs 1.30 lakh per month and disciplined SIPs of Rs 25,000 show your clarity and commitment. You already hold a diversified base—mutual funds, SGBs, FDs, and property. This is a solid start toward long-term wealth creation.

Your intention to invest another Rs 20,000–25,000 every month is wise. It shows you are serious about growing your money strategically. Let’s assess your current setup and plan where the next rupee should go for balanced growth and safety.

» Understanding your current financial picture
Your portfolio already reflects a good asset spread. You have:
– Mutual funds worth around Rs 3 lakh through SIPs.
– Sovereign Gold Bonds worth Rs 3 lakh.
– Land valued at Rs 40 lakh.
– A self-occupied house worth Rs 80 lakh (with Rs 45 lakh loan).
– Bank and FD savings of around Rs 9 lakh.

This indicates strong asset creation in both real and financial forms. However, most of your net worth is in illiquid assets like land and house. So, your next set of investments should focus on liquidity, flexibility, and growth.

» Importance of building liquidity before adding risk
Many investors skip building adequate liquidity. You already have Rs 9 lakh in FDs and savings. That’s positive. Still, ensure you maintain at least six months of your expenses in a liquid fund or savings account.

This gives you flexibility and protects your mutual funds during emergencies. Once you’re confident about liquidity, you can move the rest toward wealth-building instruments.

» Evaluating your debt situation and cash flow
Your home loan is Rs 45 lakh. The EMI is likely a significant monthly outflow. If your interest rate is high, partial prepayment every 2–3 years can save you huge interest. But don’t rush to close the loan fully. Balancing between investments and partial loan reduction gives better flexibility.

Debt repayment is risk-free return, but equity investments create long-term wealth. Keeping both in balance is the smart path.

» Setting clear goals before choosing investments
Before deciding where to invest the extra Rs 20,000–25,000 per month, think about your goals. Each rupee should have a purpose.

Ask yourself:
– Are you investing for early retirement?
– Children’s higher education or marriage?
– Financial freedom or passive income?

When each goal has a time frame, the right asset allocation becomes clear.

» Ideal direction for your new monthly investments
Since you already have SIPs of Rs 25,000 running, adding another Rs 20,000–25,000 should be diversified further but not scattered. Avoid adding too many schemes. Instead, strengthen existing categories.

Here’s a structured approach:

– Around 40% (Rs 8,000–10,000) into long-term equity mutual funds for wealth creation.
– Around 30% (Rs 6,000–7,000) into hybrid or balanced advantage mutual funds for stability.
– Around 20% (Rs 4,000–5,000) into short-term debt or liquid funds for medium-term goals.
– Around 10% (Rs 2,000–3,000) into SGB or gold funds for diversification.

This balanced approach covers growth, stability, and liquidity.

» Why continuing with actively managed mutual funds is better
Many investors get attracted to index funds or ETFs because of low costs. But index funds simply copy the market and cannot protect during downturns. They rise and fall with the index, offering no flexibility.

Actively managed funds have professional managers who can shift across sectors and stocks. This flexibility helps manage risks and improve returns over time.

So, continue with actively managed diversified equity mutual funds through your Certified Financial Planner. This path ensures ongoing review and professional guidance.

» Why to prefer regular mutual funds through CFP channel
Direct mutual funds look cheaper but lack expert review and emotional discipline. Most investors in direct plans make unplanned redemptions, reducing their long-term gains.

Regular mutual funds through a Certified Financial Planner come with periodic reviews, risk assessment, and rebalancing support. This personalized guidance helps avoid mistakes and ensures long-term growth.

The small distribution cost is worth the professional monitoring you receive.

» Evaluating your gold exposure through SGB
Your SGB holdings of Rs 3 lakh already provide diversification. Gold acts as a hedge against inflation and market volatility. However, don’t overinvest in gold. Keeping around 10–15% in gold is ideal.

Avoid adding more unless your portfolio equity portion grows much larger. Gold is for protection, not high growth.

» Strengthening your debt portfolio
Debt funds provide stability and predictable returns. Instead of keeping all money in FDs, start using short-term debt or ultra-short-term mutual funds. They are more tax-efficient and flexible.

Since FDs interest is taxed at your slab rate, shifting part of it to mutual fund debt category can save tax and improve liquidity. For short-term goals (less than 3 years), such funds are excellent.

» Creating a core and satellite investment structure
To simplify decisions, divide your portfolio into two parts:

– Core portfolio: Stable, long-term investments like diversified equity mutual funds, hybrid funds, and SGBs. These are for wealth creation.
– Satellite portfolio: Flexible investments like short-term debt funds, liquid funds, or special opportunity funds. These are for tactical moves or short-term goals.

This helps balance long-term growth and short-term flexibility.

» How to plan for your home loan
Since you already have a house loan, compare the loan rate with expected investment return. If the rate is below 9%, continue regular EMIs and let investments grow. If it is above 9%, partial prepayment using annual bonuses can be considered.

However, don’t divert all your surplus only toward loan closure. Wealth grows faster when you invest early and let compounding work.

» Importance of having proper insurance cover
Before increasing your investments, ensure your protection foundation is solid.
You should have:
– Term life insurance covering at least 12–15 times your annual income.
– Comprehensive health insurance for the family (beyond employer cover).

Insurance is a shield that prevents wealth erosion. It supports your family and ensures your investments stay intact.

» How to invest your additional Rs 20,000–25,000 systematically
Instead of investing a lump sum every few months, start a monthly SIP for this amount. This brings discipline and rupee cost averaging.

If you prefer flexibility, divide into:
– Rs 10,000–12,000 SIP in equity mutual funds (growth focus).
– Rs 6,000–8,000 SIP in hybrid funds (stability focus).
– Rs 4,000–5,000 SIP in short-term or liquid funds (liquidity focus).

This gives you growth, balance, and accessibility all together.

» Importance of goal mapping and review
Once you start new SIPs, track them with your Certified Financial Planner annually. Every 12 months, review performance, rebalance asset allocation, and match it to your goals.

This ongoing assessment ensures you stay aligned with your financial plan even when markets fluctuate.

» Avoid mixing insurance and investment
If you hold any LIC endowment, ULIP, or investment-linked insurance plans, review them. They usually give low returns and high charges.

Surrendering such policies (if suitable) and redirecting that money into mutual funds can improve your returns significantly. Pure term insurance plus separate investment is always more effective.

» Tax efficiency and planning
Always keep taxation in mind while planning your investments.
– Equity mutual fund LTCG above Rs 1.25 lakh in a year is taxed at 12.5%.
– STCG is taxed at 20%.
– Debt mutual fund gains are taxed as per your slab.

This makes mutual funds more tax-efficient than FDs or recurring deposits. Over long periods, this difference compounds greatly.

» Emergency fund and short-term reserves
You already have Rs 9 lakh in FDs and savings. Keep at least 6–12 months’ expenses aside. If you are married, cover your spouse’s health and future cash flow too.

Avoid mixing emergency funds with long-term investments. Liquidity gives peace of mind during uncertain times.

» Behavioural discipline during market volatility
Market ups and downs are normal. Don’t stop SIPs or withdraw out of fear. Continue investments even during corrections. That’s when you buy more units at lower prices.

Your patience and discipline are your biggest assets in wealth creation.

» Power of compounding through time
You are in your peak earning years. The next 15–20 years are crucial. If you keep investing Rs 45,000–50,000 every month consistently, you can build massive wealth by retirement.

Compounding needs time and consistency. Avoid frequent changes. Stay invested with long-term commitment.

» Why a Certified Financial Planner adds value
A Certified Financial Planner helps you design a 360-degree plan covering cash flow, risk cover, tax, retirement, and investments.

They review your portfolio annually, align it with life goals, and ensure balanced risk exposure. They also bring behavioural discipline, which often makes the biggest difference.

» Finally
You have made a strong start with your investments, real estate, and savings. The next step is to structure your new Rs 20,000–25,000 per month in a well-diversified way.

– Continue your existing SIPs in actively managed mutual funds.
– Add new SIPs in hybrid and short-term funds for balance.
– Maintain liquidity through emergency reserves.
– Strengthen insurance and protection cover.
– Review annually with a Certified Financial Planner.

This 360-degree approach will bring steady growth, financial security, and long-term freedom. You are on the right track. Continue your discipline and let time and compounding do their magic.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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