My friend has only INR 100 Lacs in cash and is retired now. What should be his investment portfolio that gives him regular income for living? Also earning good amount on his investments.

Ans: Hello Anand and thank you for writing in.

To generate a corpus of Rs.1 Crore in 8 years, you need to start SIP's of around 61,000 every month.

You can begin by investing in:

1-Samco Flexicap-Rs.21,000
2-Edelweiss Nifty 100 Quality 30 TRI Index Fund-Rs.20,000
3-DSP Quant Fund-Rs.20,000

Annually stepping up the SIP's will help you create a larger corpus.

Ans: If he is retired and needs regular income, he has to move all his assets to DEBT schemes which will fetch him regular returns. Also look at the ratings before investing in debt products. If he wants to keep some portion of his wealth and pass on to next generation then he can buy high dividend paying stocks, which will have income from dividends.

Ans: Hello and thanks for writing to me. Please share details like your risk appetite, time horizon and how long you wish to withdraw Rs.1 Lakh monthly from your corpus.

Ans: You own a house and a property worth Rs 28 lakh. These are valuable assets. Your income is Rs 33,000 per month. You need to plan for your children’s education, daughter’s marriage, and retirement. Start step by step.

Build an Emergency Fund
Set aside 3–6 months of expenses for emergencies. Begin small with Rs 3,000–5,000 monthly savings. Use a bank savings account or liquid mutual fund. This fund provides security in tough times.

Secure Your Family with Term Insurance
Buy a term insurance policy for at least Rs 50 lakh. This protects your family financially in your absence. Premiums are affordable and provide peace of mind.

Health Insurance is Essential
Buy a family floater health insurance plan. Ensure coverage of at least Rs 10 lakh. This protects against medical expenses and reduces financial strain.

Create a Monthly Budget
Track your monthly expenses and income. Allocate a portion to savings and investments. Prioritise essential expenses over luxuries.

Plan for Children’s Education
Start investing for your children’s higher education. Open a recurring deposit or invest in a child-specific mutual fund plan. Begin with small contributions and increase them gradually.

Plan for Daughter’s Marriage
Allocate a portion of the Rs 28 lakh property for this goal. You can sell it in the future when needed. Start a small savings plan to support this goal as well.

Start Investing in Mutual Funds
Invest in mutual funds for long-term goals like retirement. Begin with Rs 2,000–3,000 per month. Choose diversified or balanced funds for steady growth.

Sell the Gifted Property Strategically
Keep the property for now unless urgent funds are required. Use its value as a backup for future needs like education or marriage.

Focus on Retirement Planning
You must plan for retirement as a priority. Start a Public Provident Fund (PPF) account for tax-free savings. Consider investing in mutual funds for long-term growth.

Benefits of Regular Funds and CFP Guidance
Investing through regular funds provides professional advice. Certified Financial Planners guide you with tailored strategies. They align your investments with your goals.

Avoid Direct and Index Funds
Direct funds lack professional guidance. Index funds only mirror the market and may underperform actively managed funds. Actively managed funds offer higher growth potential with expert management.

Monitor Tax Implications
Equity mutual funds’ LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%. Plan your withdrawals strategically to minimise taxes.

Teach Financial Discipline
Educate your children about savings and budgeting. Encourage them to value money and save wisely.

Finally
Focus on one goal at a time. Build an emergency fund first. Secure your family with insurance. Start investing small amounts for long-term goals. Seek guidance from a Certified Financial Planner for better results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Your friend is young and earning Rs. 24,000 per month.
He wants to build wealth.
That is a smart decision at the right age.
Early planning gives more time for compounding.

Let us build a 360-degree strategy.
It should balance savings, investments, risk cover, and goals.
Every rupee must serve a purpose.
Even small savings grow big with discipline and time.

Understanding Monthly Budget

First, he should track his money.
Where is it going? How much is saved?
Suppose Rs. 10,000 goes to expenses.
Then Rs. 14,000 is surplus.
We must allocate this smartly.

Emergency Fund Planning

He must build emergency cash first.
Keep at least Rs. 30,000 to Rs. 50,000 aside.
Start saving Rs. 2,000 every month.
Use a savings account or liquid fund.
Avoid holding large cash at home.

Emergency fund gives peace.
No need to break investments in crisis.

Health and Term Insurance First

Even at 23, protection is must.
One illness can wipe out savings.
He must take a health cover of Rs. 3–5 lakh.
Go for individual policy, not company group plan.
Premium is very low at his age.
Don’t delay this step.

Next, take a small term insurance.
Even Rs. 25 lakh cover is enough now.
Increase later as income grows.
Term plan gives financial security to family.
Avoid traditional or ULIP plans.
These mix insurance and investment badly.

If he already holds LIC or ULIP,
We must analyse and surrender if needed.
Invest proceeds in mutual funds.

Ideal Investment Structure

Now let’s create a simple investment plan.
Total investable amount: around Rs. 10,000 per month.

Split the amount like this:

Rs. 4,000 into a flexi-cap fund

Rs. 2,000 into a large & mid-cap fund

Rs. 2,000 into a hybrid or multi-cap fund

Rs. 1,000 into PPF or ELSS for tax-saving

Rs. 1,000 into digital gold or balanced gold fund

Let us see why this mix works.

Flexi-Cap Fund:

It invests in large, mid, and small companies.

Fund manager chooses based on market conditions.

Good as core holding.

Choose regular plan via a Certified Financial Planner.

MFD helps in reviews and rebalancing.

Large & Mid-Cap Fund:

This brings stability and growth.

Safer than small-cap or thematic funds.

Add SIP here for long-term wealth creation.

Multi-cap or Balanced Advantage Fund:

They spread money across all segments.

Some funds use equity and debt mix.

This reduces risk in market ups and downs.

Ideal for first-time investors.

PPF or ELSS (Rs. 1,000 per month):

Choose only one based on tax need.

PPF gives fixed tax-free interest.

ELSS gives tax saving and market returns.

Lock-in is 15 years for PPF, 3 years for ELSS.

Gold Investment:

He can invest Rs. 1,000/month in gold-based fund.

Not Gold ETF.

Gold ETF is passive, gives no alpha.

Better to choose gold mutual fund (fund of fund style).

No need for demat. SIP is easier.

Gold gives hedge during inflation or crisis.

But keep gold to 10% of portfolio.

Why Regular Plans through MFD is Better

Young investors often prefer direct plans.
But they miss guidance, reviews, and corrections.
One wrong fund can destroy returns.
Also, direct plans don’t support goal tracking.

Regular plans give access to MFD + CFP.
They help build and track financial goals.
They rebalance when needed.
Fees are paid by AMC, not investor.

If he invests without support, he may stop midway.
Professional help keeps discipline strong.

Goal-Based Investing Approach

He should define 2–3 small goals now.
Like:

Emergency fund by next 12 months

Buying a bike in 2 years

Rs. 2 lakh in equity in 3 years

Marriage fund in 5+ years

Goals bring direction.
Else, investments become random.
He should start SIPs with timelines.
Review every year with an MFD.

Avoid These Investment Mistakes

Don’t invest in stock market directly now.

Don’t buy insurance for returns.

Don’t invest in index funds.
They are passive and don’t beat market always.
No protection during crash.
Better to use active funds with smart fund managers.

Don’t keep all money in bank account.

Don’t copy others’ investments.

His plan must match his income and goals.

Tax Planning Advice

At Rs. 24,000/month, tax is not a problem yet.
But it will be, when income crosses Rs. 5 lakh.
So, start building Section 80C benefits slowly.
PPF, ELSS, SSS, and life insurance are good tools.
ELSS gives lowest lock-in with equity exposure.

How to Grow this Plan Further

Every year, income may increase.
He should increase SIPs with it.
Even Rs. 500 step-up makes a difference.
Avoid lifestyle inflation.
Keep increasing savings, not expenses.

Also:

Take yearly review with a Certified Financial Planner

Don’t chase high return funds only

Stick to asset allocation

Have patience during market drops

Wealth grows slowly but surely.

What if He Has Only Rs. 5,000 to Start?

Even then, begin small.
Rs. 2,000 in flexi-cap fund
Rs. 1,000 in hybrid fund
Rs. 1,000 in ELSS or PPF
Rs. 1,000 in emergency fund

The habit matters more than amount.
It builds discipline and confidence.

Finally

Your friend is very young.
He has time on his side.
Even Rs. 5,000 per month can grow into lakhs.
But he must be regular and smart.

Tell him to:

Track spending

Save every month

Invest with purpose

Take insurance cover

Avoid flashy investments

Stick to a written plan

Review with a CFP yearly

This will give him long-term financial freedom.
Every great investor started small like this.

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