Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 29, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - May 25, 2025

Money

My friend has invested 13lakhs in mutual fund and its current worth is 19 lakhs now. He is planning to buy a apartment now worth 55 lakhs by selling all mutual funds and pay remaining by home loan. His current salary is 70k and his wife earns 40k and they have a girl child 3 month old now. He is 28year old now. Please advise if this is a good idea?

Ans: He has shown good discipline by investing Rs. 13 lakh in mutual funds, now valued at Rs. 19 lakh. However, using the entire mutual fund corpus to buy a Rs. 55 lakh apartment may not be the best decision. Let’s explore this further.

Current Financial Snapshot
Combined monthly income: Rs. 1.10 lakh

Mutual fund corpus: Rs. 19 lakh (initial investment: Rs. 13 lakh)

Proposed apartment cost: Rs. 55 lakh

Proposed home loan: Rs. 36 lakh

Dependent: 3-month-old daughter

Assessing the Home Loan Affordability
With a combined income of Rs. 1.10 lakh, a Rs. 36 lakh loan over 20 years would result in an EMI of approximately Rs. 30,000.

This EMI would consume about 27% of their monthly income, which is within the generally recommended limit of 30-40%.

Evaluating the Decision to Liquidate Mutual Funds
Selling the entire mutual fund corpus would eliminate their emergency fund and long-term investment growth potential.

They would also incur a long-term capital gains tax of 12.5% on gains exceeding Rs. 1.25 lakh.

Alternative Strategies
Partial Liquidation: Consider selling a portion of the mutual funds to reduce the loan amount, while retaining some investments for future growth and emergencies.

Emergency Fund: Maintain at least 6 months' worth of expenses in a liquid form to cover unforeseen circumstances.

Child's Future: Start a separate investment plan for the child's education and other future needs.

Final Insights
While purchasing a home is a significant milestone, it's essential to balance this with financial stability.

Retaining some mutual fund investments can provide financial security and growth.

It's advisable to consult with a Certified Financial Planner to tailor a plan that aligns with their financial goals and responsibilities.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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.

MoneyReply

You may like to see similar questions and answers below

Moneywize | Answer |Ask -Follow

Financial Planner - Answered on Apr 12, 2024

Asked by Anonymous - Apr 11, 2024Hindi

Money

I have a mutual fund corpus of Rs 30 lakh. I am looking to buy a 1 bhk apartment in suburban Mumbai for Rs 1.2 crore. My wife too will be contributing Rs 40 lakh. Shall I go for a home loan or take loan from family and friends to make up for the remaining Rs 50 lakh? Our monthly in-hand salary is Rs 1,80,000 approximately after deducting for all the expenses and taxes.

Ans: Here's a breakdown to help you decide between a home loan and borrowing from family/friends:

1. Taking a home loan:

• Loan feasibility: With a combined monthly income of Rs 1.8 lakh, you can comfortably afford an EMI of around Rs 50,000- Rs 60,000 (assuming a 20-year loan tenure and interest rate around 8%). This would be sufficient to cover the Rs 50 lakh loan you require. You can use an EMI calculator on many bank websites to get a more precise idea.
• Benefits: There are tax benefits associated with home loans. You can deduct the interest paid on the home loan from your taxable income, which can bring down your tax liability. Additionally, owning a property appreciates in value over time.
• Drawbacks: Home loans come with processing fees and other charges. There can also be prepayment penalties if you choose to close the loan before the tenure ends.

2. Borrowing from family/friends:

• Benefits: You might be able to negotiate a lower interest rate compared to a bank loan. There's also more flexibility in terms of repayment schedules.
• Drawbacks: Borrowing from friends or family can strain relationships if there are delays in repayment or disagreements over terms. Make sure to have a written agreement outlining the interest rate, repayment schedule, and other important details.

3. Considering your situation:

• The EMI for Rs 50 lakh loan seems manageable based on your income.
• Home loan interest rates are currently around 8%, which might be lower than the interest rate you would be charged by friends or family.
• Tax benefits on home loans can give you additional savings.

4. Recommendation:

Given your financial situation, taking a home loan seems like a viable option. However, it's always good to compare interest rates and terms offered by different lenders before finalising a deal.

You can also talk to your family and friends to see if they are willing to offer you a loan at a competitive rate.

5. Here are some additional things to consider:

• Stability of income: Make sure your job is stable enough to ensure timely EMI payments.
• Down payment: A larger down payment will bring down the loan amount and your EMI burden.
• Future expenses: Factor in other expenses associated with property ownership such as maintenance, property taxes, etc.

Ultimately, the decision of whether to take a home loan or borrow from family/friends depends on your individual circumstances and comfort level.

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 23, 2024

Question by samiran - Jul 12, 2024Hindi

Money

Hello Sir, I am 42 years old now. I have an underconstruction luxury apartment which I have taken after breaking my banks (withdrawing mutual funds, EPF,savings) and it costed me some 1.65 CR. present market value is 3.25CR and it may go to 4 CR by March 2025 and that is max it can go in near future. I have left my job 3 years back and started my business where I am presently earning average 2 lakh per month (not stable yet) which will grow to 5 lakh per month by next year. I have not done any other saving apart from insurace (Life, Health,Term). My present expenditure is some 1.5 lakh per month (staying in rented apartment and no plan to move to new apartment for at least next 4 years as my kid (class 7) high school is running and he has friend circle here). My question is 1. Should I sell my apartment now and invest in mutual funds for a SWP of 2 lakh per month? Because we dont have any plan to move there.

Ans: Your financial situation is a mix of smart decisions and potential opportunities. You’ve invested in a luxury apartment that has appreciated significantly. However, this investment has also tied up a large portion of your assets. Your business, while still stabilizing, has the potential for significant growth, and you’ve maintained a good handle on your monthly expenses with essential insurance coverage in place.

Why Selling the Apartment Makes Sense
Given your current circumstances, selling the apartment now and reinvesting in mutual funds could be a strategic move. Here’s why:

Maximized Growth Potential: The apartment’s current market value is Rs 3.25 CR, and it may reach Rs 4 CR by March 2025. However, after that, the growth potential seems limited. Selling now allows you to capitalize on the appreciation you’ve already achieved and move your money into investments with higher potential returns.

Liquidity Needs: Real estate is a highly illiquid asset. Selling the apartment will free up a significant amount of capital, giving you the flexibility to invest in more liquid assets. This liquidity is crucial, especially as your business income is still stabilizing.

Steady Income Stream: By reinvesting the proceeds into mutual funds and opting for a Systematic Withdrawal Plan (SWP), you can create a steady income stream of Rs 2 lakh per month. This income can help you comfortably cover your monthly expenses without dipping into your business earnings.

Advantages of Reinvesting in Mutual Funds
Reinvesting the proceeds from the apartment sale into mutual funds offers several advantages:

Diversification: Unlike real estate, mutual funds allow you to diversify your investments across various asset classes. This diversification reduces risk and enhances the potential for stable returns.

Professional Management: Actively managed mutual funds are handled by expert fund managers who aim to outperform the market. This professional management can help you achieve better returns compared to index funds.

Flexibility: Mutual funds offer the flexibility to adjust your portfolio based on market conditions and your financial goals. This adaptability is not available with real estate.

Considerations for a Systematic Withdrawal Plan (SWP)
An SWP is an excellent way to generate regular income from your mutual fund investments. Here’s why it could work well for you:

Regular Income: An SWP can provide you with a consistent monthly income of Rs 2 lakh, ensuring that your living expenses are covered without relying on your business income.

Capital Preservation: If you invest in the right mix of funds, the capital growth could offset the withdrawals, helping to preserve your initial investment while still providing regular income.

Tax Efficiency: SWPs are more tax-efficient than fixed deposits or regular withdrawals, as the tax is levied only on the gains rather than the entire withdrawal amount.

Benefits of Actively Managed Funds Over Index Funds
In your case, actively managed funds would be a better choice than index funds. Here’s why:

Higher Return Potential: Actively managed funds aim to outperform the market, offering higher return potential. This is particularly important given your need to generate a stable income from your investments.

Adaptability: These funds can quickly adjust to changing market conditions, reducing risk and taking advantage of new opportunities.

Professional Oversight: The expertise of fund managers in actively managed funds adds value, as they continuously monitor and adjust the portfolio to maximize returns.

Reinforcing Your Insurance Coverage
You’ve wisely secured life, health, and term insurance. However, as you sell the apartment and reinvest, it’s a good time to reassess your insurance needs. Ensure that your policies provide adequate coverage for your family, considering your current financial commitments and future plans.

Strategic Use of Sale Proceeds
Here’s how you can strategically use the proceeds from the apartment sale:

Build a Diversified Portfolio: Invest in a combination of equity, debt, and hybrid mutual funds. This will balance risk and return, ensuring both growth and income.

Create an Emergency Fund: Allocate a portion of the proceeds to an emergency fund. This fund will act as a safety net, especially during any periods of business instability.

Reinvest in Your Business: Consider reinvesting some of the funds into your business. As your business grows, it could provide a significant boost to your income and overall financial stability.

Final Insights
Selling the apartment and reinvesting in mutual funds is a strategic move that aligns with your current financial goals. It offers liquidity, diversification, and the potential for higher returns. By creating a diversified investment portfolio and leveraging a Systematic Withdrawal Plan, you can ensure a steady income while preserving your capital.

This approach also gives you the flexibility to reinvest in your business, which could significantly enhance your future earnings. Ensure your insurance coverage is adequate, and regularly review your financial plan to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

Asked by Anonymous - Aug 02, 2024Hindi

Money

Hello , I am 42 years old, I am owning 2 flats 2bhk and 2.5bhk, I have 70Lacs in mutual funds and 40 Lacs in pf and Loan rs 40 lacs. In my building resale flat is coming to sell worth rs 85L. Is it worth to buy third flat by putting all Mutual fund money?

Ans: Your interest in expanding your real estate portfolio demonstrates a strong awareness of investment opportunities. However, purchasing a third flat using your mutual fund investments requires careful consideration of the potential impact on your overall financial health. Let’s explore the implications in detail.

Current Financial Situation
Asset Overview:
You currently own two residential flats, a significant investment in real estate. Additionally, you have Rs. 70 lakhs in mutual funds and Rs. 40 lakhs in your provident fund. You also have a Rs. 40 lakh home loan, which is an ongoing liability.

Diversified Portfolio:
Your assets are spread across different investment classes—real estate, mutual funds, and provident fund. This diversification is vital in managing risk and ensuring that you have a balanced approach to wealth creation.

Evaluating the Impact of Liquidating Mutual Funds
Risk of Over-Concentration:
If you decide to liquidate your mutual funds to purchase the third flat, it will significantly increase your exposure to real estate. While property can appreciate over time, having too much of your wealth tied up in one asset class could expose you to higher risks, particularly in a fluctuating real estate market.

Loss of Liquidity:
Mutual funds, especially equity mutual funds, offer the advantage of liquidity. You can easily access your funds in times of need, which provides financial flexibility. Real estate, on the other hand, is an illiquid asset. Selling a property takes time and might not fetch the desired price, especially in a market downturn.

Opportunity Cost:
By using all your mutual fund money to buy another flat, you may miss out on potential market gains. Mutual funds, particularly those invested in equities, have historically provided higher returns over the long term. This could be a missed opportunity for wealth accumulation, especially if the real estate market underperforms.

Considering the Existing Loan
Financial Burden:
You currently have a Rs. 40 lakh loan. Adding another property by liquidating mutual funds might increase your financial obligations. Even if you manage to avoid taking a new loan, the pressure to maintain cash flow for property-related expenses (like maintenance, taxes, and potential renovation) could strain your finances.

Debt Management:
It’s essential to consider how the existing loan and potential expenses on a new property will affect your long-term financial goals. Increasing your liabilities might limit your ability to invest in other asset classes that offer growth potential and liquidity.

Real Estate vs. Mutual Funds
Concentration Risk:
Owning three flats means a large portion of your wealth is concentrated in real estate. This increases your exposure to risks like market downturns, changes in property laws, and other uncertainties. Diversification across asset classes helps in managing these risks better.

Maintenance and Costs:
Real estate investments come with ongoing costs such as maintenance, property taxes, and potential repairs. These expenses can eat into your rental income and overall return on investment. Unlike mutual funds, where the cost of investment is relatively low and predictable, property-related costs can be variable and sometimes unexpected.

Growth Potential:
Mutual funds, especially equity-oriented ones, have a track record of delivering higher returns over the long term. These returns come with market-linked risks, but the potential for growth is significantly higher compared to real estate. Additionally, the power of compounding in mutual funds can help in wealth creation over time, something that real estate investments may not offer to the same extent.

Alternative Strategy
Balanced Investment Approach:
Instead of fully liquidating your mutual funds, consider maintaining a diversified portfolio. A balanced approach could involve keeping a portion of your mutual fund investments while exploring partial financing options if you are keen on purchasing the third flat. This allows you to retain some liquidity and potential for growth.

Debt Fund Investments:
If you prefer low-risk investments, consider allocating some funds to debt mutual funds or bonds. These options offer steady returns with lower risk and can be an alternative to putting all your money into another property. Debt funds also offer better liquidity compared to real estate.

Enhanced Mutual Fund Portfolio:
If the primary concern is to optimize returns, you could consider enhancing your mutual fund portfolio by increasing your investment in equity funds or diversifying into balanced funds. These options provide a mix of growth and stability, aligning with your long-term financial goals.

Leveraging Current Assets:
You could explore leveraging your current assets, like taking a loan against your mutual funds or provident fund, to finance part of the property purchase. This way, you retain ownership of your mutual fund investments while acquiring the new property.

Final Insights
Buying a third flat by liquidating your mutual funds is a significant financial decision that could alter your overall financial landscape. While real estate has its benefits, the concentration of wealth in one asset class and the potential loss of liquidity and growth opportunities should be carefully weighed. A more balanced approach—retaining investments in mutual funds while exploring other options—could provide greater financial security and flexibility. Consulting a Certified Financial Planner (CFP) will further help in aligning your investment strategy with your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Mar 04, 2025

Question by satish - Mar 04, 2025Hindi

Money

Hi I purchased my parents house by paying half amount to my brother and paying a loan of 45k per month now the property value is in good appreciation but lacking in financial stability I want to sell my property now and purchase new property in outskirts of city and want to invest 10 percent in mutual fund and remaining amount to do fd with monthly income is it a good move

Ans: You purchased your parents’ house by paying your brother’s share and taking a loan. Now, the property value has appreciated, but you face financial instability. You are considering selling the house, buying another one on the outskirts, investing 10% in mutual funds, and putting the rest in fixed deposits (FDs) for monthly income. Let’s analyse if this is a good decision.

Financial Challenges of Holding the Current Property
High Loan EMI Pressure

You are paying Rs 45,000 per month as EMI. This is a financial burden if your income is not stable.

Liquidity Issues

Most of your wealth is locked in the property. You may not have enough emergency funds.

Opportunity Cost

The property value has increased, but it does not generate regular income. Holding the house may not be the best financial choice.

Selling and Buying Another Property: Pros and Cons
Advantages of Selling
Debt-Free Life

If you sell, you can clear your home loan. This removes EMI pressure.

Better Financial Stability

You will have liquid funds to manage your expenses and investments.

Disadvantages of Buying Another Property
New Property May Not Appreciate Quickly

Properties in city outskirts may take longer to appreciate. Demand is usually lower.

Additional Costs Involved

Buying a new house involves stamp duty, registration fees, maintenance, and taxes.

Liquidity Issues Continue

If you reinvest in another house, you may again face cash flow problems.

Investment Plan for Better Stability
You are considering investing 10% in mutual funds and putting the rest in FDs for monthly income. Let’s evaluate this plan.

Mutual Fund Investment: A Better Approach
Growth Potential

Mutual funds offer inflation-beating returns over the long term.

Flexibility

You can withdraw through a Systematic Withdrawal Plan (SWP) instead of locking funds in an FD.

Tax Efficiency

Long-term capital gains tax on equity funds is only 12.5% above Rs 1.25 lakh. This is better than FD taxation.

Fixed Deposits: Limited Benefits
Lower Returns

FD interest rates are lower than inflation. This reduces your purchasing power over time.

Tax Disadvantage

FD interest is taxed as per your income slab. This reduces your post-tax earnings.

Lack of Growth

FDs do not allow wealth accumulation over time.

Better Strategy for Financial Stability
Sell the Current House to Reduce Debt

This removes EMI stress and improves your financial flexibility.

Avoid Buying Another House Immediately

Instead, rent a house in the desired location. This keeps your money liquid.

Diversify Investment

Allocate a portion to mutual funds for long-term wealth creation.

Keep some funds in short-term debt funds instead of FDs for better tax efficiency.

Maintain an emergency fund in a savings account or liquid funds.

Finally
Selling the house is a good decision if you struggle with financial stability.

Avoid locking funds in another house, as it may cause liquidity issues.

Invest wisely in mutual funds and liquid assets for a balanced financial future.

A Certified Financial Planner (CFP) can guide you on tax-efficient investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Sep 19, 2025

Asked by Anonymous - Sep 13, 2025Hindi

Money

Hi I am 43 years old IT professional having compensation of 80L per annum. I have health insurance of 30L for family. I have house of own so no EMI’s. I have 30 lakhs cash lying in FD, debt fund, 30L in stocks. My EPF is currently 1 crore and investment in Mutual fund is 1 crore out of which 70% is in equity fund, 5% in gold and rest in debt fund. I am doing SIP of 1 lakh per month. Other than that my monthly expense is 1 lakh. Wife is working as a teacher and earns 30K per month. Daughter is 2 years old and is in pre-school. Parents stay with us but not dependent on me. I am thinking of buying a flat which will cost me around 2.5 crore. Idea is to sell all stocks and mutual funds for down payment and take home loan for rest i.e. around 1 crore. Rent would be around 40K, but chances of future property appreciation is good. What do you suggest, is this a wise move or instead of buying flat I should invest more of mutual funds? Pls do consider, in current circumstances, job market in IT is not stable specially for senior professionals. Also, if i retire at age of 45 how much savings will I need ? Thanks

Ans: Hi,

I understand your dilemma. It is very common these days to decide what to do.
In your case, selling everything to buy a land doesn't seem a wise decision. Holding onto your funds and stocks can help you in early retirement.
However, if you get into another loan EMI, you will not be able to retire early. You have to work to pay off emi and will have no source to fund your retirement.

Hence best possible outcome here is to increase your monthly sIP to maximum to generate corpus to fund your lifestyle as well as retirement. As you said, you have a 2-yo, you also need to plan her higher studies which will require another 50 lakhs to 1 crore.

30L in FD and debt funds is good for your emergency. If you increase your SIP amount to 2 lakhs for another 4 -5 years, you can easily retire without worrying for anything.
Also for your daughter, start SIP of 50,000 into equity oriented funds for 5 years and let it grow till she turns 18. Her education expense will be sorted.

Also as your corpus is more than bare minimum of 10lakhs, I advice you to take a professional help as a guided portfolio generates better returns than a self-made one.

Hence do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

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

Latest Questions

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 23, 2025Hindi

Money

Sir, My age is 45 now. I want to shift my career into IT. what can be done. Also want to retire in 53 age. Salary gross 95500 INR . May I choose mutual fund sip but in whose sip? Sbi, ICICI ?

Ans: Hi,

Please consult a career counsellor to shift your career to IT field.
And yes you can invest in SIP. Please share the amount that you want to invest monthly, your goals and risk behaviour for me to analyse and guide you in a better way.

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

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Question by deepa - Nov 27, 2025Hindi

Money

Dear Sir, I am 60 yrs and just superannuated. I have no pension and the spread of corpus is as follows; - MF & Shares portfolio value is around 1 Cr. SWP of 40000/month initiated. But SIP of 20000/month is also on for next six months - FDs in bank is around 3. Cr and are in Quarterly pay-out interest - PPF of 20 Lac - RBI Bond of 16 lac half yearly interest pay out - PF 90 Lac not withdrawn so far as I can extend this with 1 yr. - Few SA pension 63000 per year Please do suggest if the above can give me expenses to meet 2.5 Lac/m for next 20 yrs Best regards,

Ans: Hi Deepa,

Overall your total networth is 5 crores (including PF, FD, MF, binds etc.) - we will break it into 4 crores (which can be used to fund your retirement) and 1 crore for emergencies.
If invested correctly, this 4 crores can fund you for 20 years and not more than that. You need to invest 4 crores so that they fetch you around 11-12% XIRR to fund your monthly expenses. Also withdraw your PF, liquidate 2 crores from FD and reinvest entirely.

Take the help of a professional who will design your portfolio keeping in mind your monthly requirements for the next 20 years.

Hence please consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

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

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 08, 2025Hindi

Money

I am doing 2Lkh monthly SIP as following: 1. Parag Parikh flexi - 50K 2. Tata Small cap - 50K 3. Invesco India Small cap - 50K 4. Quant Mid cap - 20K 5. HDFC Index - 10K 6. Tata Nifty Midcap 150 momentum 50 index - 10K 7. Edelweiss US Tech FOF - 10K My wife is running 30K monthly SIP, 6K in each 1. Quant Small cap 2. Quant Flexi cap 3. Kotak Multi cap 4. JioBlackrock Nifty 50 index 5. JioBlackrock Flexi cap My dad also invest 30K in SIP monthly, 6K in each 1. Parag Parikh flexi 2. Axis small cap 3. Kotak flexi cap 4. Edelweiss mid cap 5. Tata nifty midcap 150 momentum 50 I am investing for retirement with 15 year horizon. Whereas my wife is investing for my daughter’s education and marriage - she is targeting to invest for 17 years (and keep invested till our daughter marriage). My father is 70 and has 15 year investment horizon - to pass on as a gift to his grandkids. Please evaluate the investment strategy.

Ans: Hi,

It is a very good habit and strategy to align your investments with your goals. You, your wife and your father are on the right track. However the funds you described are not in alignment with your goals and highly overlapped one.
It is always better to take the help of a professional when it comes to money.
A single mistake can break your portfolio. Please do work with a dedicated professional to correct your strategy.

Do consult a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

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

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Question by shashikant - Nov 24, 2025Hindi

Money

Mujhe 40000 ki sip 5 year ke liye kis fund mai karu ghar lene kebliye

Ans: Hi Shashikant,

It is good that you want to start SIP. Please share other details such as your age, time frame, your risk profile for me to guide you better.

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

Reetika Sharma |423 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Dec 12, 2025

Asked by Anonymous - Nov 20, 2025Hindi

Money

Dear Sir, I am 43 year old living in a metro city. I have accumulated MF corpus of 2.45 Cr (2 Cr Equity fund and 45 lakh Debt fund). My PF and Gratuity is around 40 lakh. I own a house and have no liability / loans. I also have a plot worth 30 Lakhs. My monthly expense is 60,000. I want to retire in next 2 years when I will have 3 Cr total corpus. Do I have sufficient retirement corpus? How do reclassify my investments ?

Ans: Hi,
Your current assets are parked correctly and you have saved good wrt your age.
If you retire after 2 years with 3 crore corpus, you can fund yourself forever with 60,000 per month expenses (inflation adjusted).
You need to consult a professional who wi;ll design your overall portfolio for your retirement. It is better to avoid doing the same yourself because any minor mistake can cost your lifestyle.
Hence get in touch with a professional Certified Financial Planner - a CFP who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.

Let me know if you need more help.

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

Mayank Chandel |2572 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 11, 2025

Question by Prince - Dec 10, 2025Hindi

Career

Sir mene class 12 board cbse se diya usme meri maths me compartment lag gayi fir compartment ka paper aaya usme bhi fail ho Gaya sir mere pass 6 subject the overall paas hogaya fir mene nios se maths pass kar liya , is wajah se meri do marksheet ho gayi hai to me Iit jee ke liye eligbl hoon

Ans: Hello Prince
you are eligible for IIT JEE

Mayank Chandel |2572 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 11, 2025

Question by Archana - Dec 10, 2025Hindi

Career

Hi Sir, My daughter is studying in Grade 5 and following CBSE curriculum. She wishes to join Indian Navy after her schooling. Since we are getting transfer in every three years, it is difficult for her to continue her studies in the same school. So we are planning to take admission in a boarding school with ICSE curriculum. What is your opinion or advice on this?

Ans: Hello Archana ji,
As far as i understand, for defence exams (like NDA, Navy SSR/AA, CDS in future), CBSE has a slight practical advantage. The syllabus of NDA written exam aligns more closely with NCERT (CBSE) textbooks.
Competitive exams like JEE (for Navy B.Tech entry), AISSEE (for Sainik Schools), RIMC, and Olympiads also follow CBSE patterns.

Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 11, 2025

Asked by Anonymous - Dec 11, 2025Hindi

Money

Hello Sir, I am 56 yrs old with two sons, both married and settled. They are living on their own and managing their finances. I have around 2.5 Cr. invested in Direct Equity and 50L in Equity Mutual Funds. I have Another 50L savings in Bank and other secured investments. I am living in Delhi NCR in my owned parental house. I have two properties of current market worth of 2 Cr, giving a monthly rental of around 40K. I wish to retire and travel the world now with my wife. My approximate yearly expenditure on house hold and travel will be around 24 L per year. I want to know, if this corpus is enough for me to retire now and continue to live a comfortable life.

Ans: You have built a strong base. You have raised your sons well. They live independently. You and your wife now want a peaceful and enjoyable retired life. You have created wealth with discipline. You have no home loan. You live in your own house. This gives strength to your cash flow. Your savings across equity, mutual funds, and bank deposits show good clarity. I appreciate your careful preparation. You deserve a happy retired life with travel and comfort.

» Your Present Position
Your current financial position looks very steady. You hold direct equity of around Rs 2.5 Cr. You hold equity mutual funds worth Rs 50 lakh. You also have Rs 50 lakh in bank deposits and other secured savings. Your two rental properties add more comfort. You earn around Rs 40,000 per month from rent. You also live in your owned house in Delhi NCR. So you have no rent expense.

Your total net worth crosses Rs 5.5 Cr easily. This gives you a strong base for your retired life. You plan to spend around Rs 24 lakh per year for all expenses, including travel. This is reasonable for your lifestyle. Your savings can support this if planned well. You have built more than the minimum needed for a comfortable retired life.

» Your Key Strengths
You already enjoy many strengths. These strengths hold your plan together.

You have zero housing loan.

You have stable rental income.

You have children living independently.

You have a balanced mix of assets.

You have built wealth with discipline.

You have clear goals for travel and lifestyle.

You have strong liquidity with Rs 50 lakh in bank and secured savings.

These strengths reduce risk. They support a smooth retired life with less stress. They also help you handle inflation and medical costs better.

» Your Cash Flow Needs
Your yearly expense is around Rs 24 lakh. This includes travel, which is your main dream for retired life. A couple at your stage can keep this lifestyle if the cash flow is planned well. You need cash flow clarity for the next 30 years. Retirement at 56 can extend for three decades. So your wealth must support you for a long period.

Your rental income gives you around Rs 4.8 lakh per year. This covers almost 20% of your yearly spending. This reduces pressure on your investments. The rest can come from a planned withdrawal strategy from your financial assets.

You also have Rs 50 lakh in bank deposits. This acts as liquidity buffer. You can use this buffer for short-term and medium-term needs. You also have equity exposure. This can support long-term growth.

» Risk Capacity and Risk Need
Your risk capacity is moderate to high. This is because:

You own your home.

You have rental income.

Your children are financially independent.

You have large accumulated assets.

You have enough liquidity in bank deposits.

Your risk need is also moderate. You need growth because inflation will rise. Travel costs will rise. Medical costs will increase. Your lifestyle will change with age. Your equity portion helps you beat inflation. But your equity exposure must be managed well. You should avoid sudden large withdrawals from equity at the wrong time.

Your stability allows you to keep some portion in equity even during retired life. But you should avoid excessive risk through direct equity. Direct equity carries concentration risk. A balanced mix of high-quality mutual funds is safer in retired life.

» Direct Equity Risk in Retired Life
You hold around Rs 2.5 Cr in direct equity. This brings some concerns. Direct equity needs frequent tracking. It needs research. It carries single-stock risk. One mistake may reduce your capital. In retired life, you need stability, clarity, and lower volatility.

Direct funds inside mutual funds also bring challenges. Direct funds lack personalised support. Regular plans through a Mutual Fund Distributor with a Certified Financial Planner bring guidance and strategy. Regular funds also support better tracking and behaviour management in volatile markets. In retired life, proper handholding improves long-term stability.

Many people think direct funds save cost. But the value of advisory support through a CFP gives higher net gains over long periods. Direct plans also create more confusion in asset allocation for retirees.

» Mutual Funds as a Core Support
Actively managed mutual funds remain a strong pillar. They bring professional management and risk controls. They handle market cycles better than index funds. Index funds follow the market blindly. They do not help in volatile phases. They also offer no risk protection. They cannot manage quality of stocks.

Actively managed funds deliver better selection and risk handling. A retiree benefits from such active strategy. You should avoid index funds for a long retirement plan. You should prefer strong active funds under a disciplined review with a CFP-led MFD support.

» Why Regular Plans Work Better for Retirees
Direct plans give no guidance. Retired investors often face emotional decisions. Some panic during market fall. Some withdraw heavily during market rise. This harms wealth. Regular plan under a CFP-led MFD gives a relationship. It offers disciplined rebalancing. It improves long-term returns. It protects wealth from poor behaviour.

For retirees, the difference is huge. So shifting to regular plans for the mutual fund portion will help long-term stability.

» Your Withdrawal Strategy
A planned withdrawal strategy is key for your case. You should create three layers.

Short-Term Bucket
This comes from your bank deposits. This should hold at least 18 to 24 months of expenses. You already have Rs 50 lakh. This is enough to hold your short-term cash needs. You can use this for household costs and some travel. This avoids panic selling of equity during market downturn.

Medium-Term Bucket
This bucket can stay partly in low-volatility debt funds and partly in hybrid options. This should cover your next 5 to 7 years. This helps smoothen withdrawals. It gives regular cash flow. It reduces market shocks.

Long-Term Bucket
This can stay in high-quality equity mutual funds. This bucket helps beat inflation. This bucket helps fund your travel dreams in later years. This bucket also builds buffer for medical needs.

This three-bucket strategy protects your lifestyle. It also keeps discipline and clarity.

» Handling Property and Rental Income
Your properties give Rs 40,000 monthly rental. This helps your cash flow. You should maintain the property well. You should keep some funds aside for repairs. Do not depend fully on rental growth. Rental yields remain low. But your rental income reduces pressure on your investments. So keep the rental income as a steady support, not a primary source.

You should not plan more real estate purchase. Real estate brings low returns and poor liquidity. You already own enough. Holding more can hurt flexibility in retired life.

» Planning for Medical Costs
Medical costs rise faster than inflation. You and your wife need strong health coverage. You should maintain a reliable health insurance. You should also keep a medical fund from your bank deposits. You may keep around 3 to 4 lakh per year as a buffer for medical needs. Your bank savings support this.

Health coverage reduces stress on your long-term wealth. It also avoids large withdrawals from your growth assets.

» Travel Planning
Travel is your main dream now. You can plan your travel using your short-term and medium-term buckets. You can take funds annually from your liquidity bucket. You can avoid touching long-term equity assets for travel. This approach keeps your wealth stable.

You should plan travel for the next five years with a budget. You should adjust your travel based on markets and health. Do not use entire gains of equity for travel. Keep travel budget fixed. Add small adjustments only when needed.

» Inflation and Lifestyle Stability
Inflation will impact lifestyle. At Rs 24 lakh per year today, the cost may double in 12 to 14 years. Your equity exposure helps you beat this. But you need careful rebalancing. You also need disciplined review with a CFP-led MFD. This will help you manage inflation and maintain comfort.

Your lifestyle is stable because your children live independently. So your cash flow demand stays predictable. This makes your plan sustainable.

» Longevity Risk
Retirement at 56 means you may live till 85 or 90. Your plan should cover long years. Your total net worth of around Rs 5.5 Cr to Rs 6 Cr can support this. But you need a proper drawdown strategy. Avoid high withdrawals in early years. Keep your travel budget steady.

Do not depend on one asset class. A mix of debt and equity gives comfort. Keep your bank deposits as cushion.

» Succession and Estate Planning
Since you have two sons who are settled, you can plan a clear will. Clear distribution avoids conflict. You can also assign nominees across accounts. You can also review your legal papers. This gives peace to you and your family.

» Summary of Your Retirement Readiness
Based on your assets and cash flow, you are ready to retire. You have enough wealth. You have enough liquidity. You have enough income support from rent. You also have good asset mix. With proper planning, your lifestyle is comfortable.

You can retire now. But maintain a disciplined withdrawal strategy. Shift more reliance from direct equity into professionally managed mutual funds under regular plans. Keep your liquidity strong. Review once every year with a CFP.

Your wealth can support your travel dreams for many years. You can enjoy retired life with confidence.

» Finally
Your preparation is strong. Your intentions are clear. Your lifestyle needs are reasonable. Your assets support your dreams. With a balanced plan, steady review, and mindful spending, you can enjoy a comfortable retired life with your wife. You can travel the world without fear of running out of money. You deserve this peace and joy.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

Samraat Jadhav |2507 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 11, 2025

Question by Saurav - Dec 11, 2025Hindi

Money

Kindly advice i have 1500 shares of NMDC @ 60 what should i do

Ans: Profit making Company with High ROCE and Low PE, 80 may be a good price to book profits. if you are a long term investor and can hold for 10yrs then dont sell.

Samraat Jadhav |2507 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 11, 2025

Asked by Anonymous - Dec 11, 2025Hindi

Money

Regarding benefits and transfer of 1700 partly paid share I would like to inquiry about the 1700 shares of jindal vijay nagar steel that were subscribed/paid for earlier Am i eligible to receive any benefits, dividend or right associated with these partly paid shares..? Is there any rules, procedure,or provision through which these partly paid shares can be transferred and registered in my name Kindly provide guidance on the process and the required documents,if applicable I shall be grateful for your assistance Thankyou Warm regards Girish Bhatnagar

Ans: Girish ji, please connect with kfintech for the details. You would get the right information from them as they are the registrar for the issue.

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x