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46-Year-Old Seeks Investment Advice to Grow Funds for Child's Future and Secure Monthly Income

Ramalingam

Ramalingam Kalirajan  |6978 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 14, 2024

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
Avi Question by Avi on Oct 12, 2024Hindi
Money

Hello, I'm a 46 year old , unable to work anymore, I have no loans, own house,wife is the earning member. My investments are : Running investments: Pension Plan with fund value of 42 lakhs(current fund value) till 2037, Equity Mutual fund with fund value of 12 lakhs( Current fund value). Yearly investment emi of 1.20 lakh Monthly expenditure of 25 k Monthly rental income of 8k NO PPF Bank Balance of 26 lakh. Want to invest 10 -15 lakh to earn a sizeable corpus ( say 1 cr) in next 18 years for my child when he will become an adult, in addition to a 50 k monthly income in next 2-3 years Can you kindly guide me as to what investments I should be doing to achieve this target

Ans: You have provided valuable details about your financial situation. Let’s analyse your current standing and future goals.

Age: 46 years old
Running Investments:
Pension Plan with a current fund value of Rs 42 lakhs (maturing in 2037).
Equity Mutual Fund with a current fund value of Rs 12 lakhs.
Income & Expenditure:
Monthly rental income of Rs 8,000.
Monthly expenditure of Rs 25,000.
Yearly EMI of Rs 1.2 lakh for ongoing investments.
Savings: Bank balance of Rs 26 lakhs.
Investment Goals:
You want to invest Rs 10-15 lakh to build a corpus of Rs 1 crore in 18 years for your child.
You also need a monthly income of Rs 50,000 in the next 2-3 years.
Given these goals, let’s discuss how you can achieve them.

Income Generation for Monthly Needs (Rs 50,000)
To achieve a monthly income of Rs 50,000 in the next 2-3 years, we need to explore investment options that can generate consistent returns.

Rental Income: You already have Rs 8,000 coming in monthly. This helps reduce your income requirement.

Systematic Withdrawal Plan (SWP):

A Systematic Withdrawal Plan from your mutual funds could be useful.
You can park part of your Rs 26 lakh bank balance into a debt-oriented hybrid mutual fund.
These funds provide stability with moderate returns.
You can withdraw monthly amounts through SWP to meet your requirement.
Based on the fund's performance, you can plan to withdraw around Rs 42,000 per month to reach your target of Rs 50,000 (including Rs 8,000 from rent).
This option allows you to use your capital effectively while keeping it invested for moderate growth.

Fixed Income Options:

You may also consider some amount in fixed deposits or high-interest-bearing savings instruments.
However, they are taxed as per your income tax slab, so this may reduce post-tax returns.
Combining these with SWP ensures liquidity and some level of fixed returns.
This way, your immediate income needs can be met, keeping your capital intact.

Investment Plan for Building Rs 1 Crore for Child's Future
You aim to build Rs 1 crore in 18 years for your child. The best way to achieve this is through equity-based investments, as they tend to offer the highest long-term growth.

Equity Mutual Funds:

For long-term goals like 18 years, equity mutual funds are the most suitable.
Your existing equity mutual funds of Rs 12 lakh can continue to grow.
You can also invest Rs 10-15 lakh from your bank balance into diversified equity funds.
Actively managed equity mutual funds generally perform better over a long period compared to passive index funds, which often lack flexibility in changing market conditions.
It’s crucial to focus on mid-cap and small-cap funds as they have higher growth potential over an 18-year period.
Regular vs Direct Funds:

You might have heard about direct mutual funds, which have lower fees.
However, direct plans require deep market understanding and regular monitoring.
Investing through a Certified Financial Planner (CFP) who works with an MFD can help you manage your portfolio professionally, ensuring that your investments are regularly rebalanced to match market changes.
Regular plans, managed by CFPs, provide professional guidance, making them a better choice for individuals who do not want the stress of tracking every detail.
SIP for Consistent Growth:

You can start a SIP (Systematic Investment Plan) of Rs 50,000 monthly.
This amount will steadily build wealth over 18 years.
By investing Rs 50,000 a month in a mix of large-cap, mid-cap, and small-cap funds, you stand a good chance of achieving your target of Rs 1 crore.
A professional MFD working with a CFP can help you select funds based on your risk profile and growth expectations.
Review of Existing Pension Plan
Your pension plan with a current fund value of Rs 42 lakhs is a significant part of your retirement portfolio.

Performance Review:
It is crucial to review the performance of this pension plan periodically.
Ensure that it continues to give reasonable returns, as you have 13 more years until it matures.
Often, these plans have high charges and lower returns compared to equity mutual funds. You should evaluate if it makes sense to continue with this investment or switch to something more productive.
If the returns are lower than expected, you may want to consider redirecting future premiums into better-performing mutual funds.
Tax Implications on Your Investments
Understanding tax liabilities is essential for maximising your returns.

Capital Gains Tax on Mutual Funds:

For equity mutual funds, LTCG (Long-Term Capital Gains) above Rs 1.25 lakh is taxed at 12.5%.
Short-Term Capital Gains (STCG) on equity mutual funds are taxed at 20%.
For debt mutual funds, LTCG and STCG are taxed according to your income tax slab.
You should consult with your CFP to ensure that your withdrawals and investments are done in the most tax-efficient manner.
Tax on Rental Income:

The Rs 8,000 monthly rental income is also taxable.
Ensure you factor this into your annual tax planning.
By optimising tax strategies, you can maximise your returns while keeping your liabilities low.

Contingency and Emergency Fund
While investing for long-term goals, don’t overlook short-term financial safety.

Emergency Fund:
Out of your Rs 26 lakh bank balance, set aside at least Rs 4-5 lakh as an emergency fund.
This will help you manage any unforeseen expenses without disturbing your investments.
Keep this amount in a liquid or short-term debt fund for easy access.
Health Insurance:
Since your wife is the sole earning member now, ensure that you have adequate health insurance coverage.
This will help safeguard your family’s finances in case of medical emergencies.
Revisit Your Financial Plan Regularly
It is essential to track your financial journey.

Review Performance:

Regularly review the performance of your mutual funds and pension plans.
Make adjustments based on market conditions and your changing life circumstances.
Stay on Track with Goals:

Ensure that you are consistently investing towards your Rs 1 crore goal.
Keep in touch with your CFP to monitor if you’re on track, and take corrective actions if required.
By actively managing your investments and reviewing your goals, you can ensure financial security for your family.

Finally
Your situation is unique, and your goals are achievable with a disciplined approach.

By combining equity mutual funds, SWPs, and systematic SIPs, you can grow your wealth and generate regular income. Balancing risk and return is essential to meet your child’s future needs and your immediate income requirements.

Keep your financial plan flexible, review it often, and stay committed to your goals.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Asked on - Oct 14, 2024 | Answered on Oct 15, 2024
Listen
Thank you for your time and guidance, I have very little knowledge of finance, it would be very helpful if you kindly give .a breakup of amounts that I ought to deploy as per your above given plan. I already have a 30 lakh medical insurance plan running and my wife is covered also .
Ans: Thank you for your detailed message and for trusting me with your financial planning. I truly appreciate your proactive approach towards securing your and your family's future.

I recommend getting in touch with a Certified Financial Planner (CFP) or a Mutual Fund Distributor (MFD) who can tailor a plan based on your specific financial needs. They will guide you on how to allocate your funds effectively for both short-term and long-term goals. This step ensures that your financial strategy is well-aligned with your future aspirations while considering your risk appetite.

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.
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Ramalingam

Ramalingam Kalirajan  |6978 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 2024

Asked by Anonymous - Jun 09, 2024Hindi
Money
I am 39 years old and earning net salary after all (NPS/EPF/EMI) deductions 1.4 lac per Month. Current NPS balance 37 lac and EPF balance 25 lacs. I have also deposited 7 Lac in PPF, 12 Lac in mutual fund and 8 lacs in stocks. I have a house for which the remaining loan amount is 16.5 lacs. My current SIP is 22000 in MF and 10500 in stocks. I have a term plan of 2 cr. I can save another 50000-60000 per month with 5 % stepup. I have two kids studying in clas 5 and 3 respectively. I want to build a corpus of 3 cr for their higher education and 1 cr for my retirement in coming 11-14 years. Review my current investment and suggest me assets for investment for mentioned goals.
Ans: Building a solid financial plan is crucial. You aim to save Rs. 3 crores for your children's education and Rs. 1 crore for your retirement in the next 11-14 years. This plan will evaluate your current investments and suggest strategies to meet these goals.

Current Financial Situation

You're 39 years old with a net monthly salary of Rs. 1.4 lakhs after deductions. Your investment portfolio includes Rs. 37 lakhs in NPS, Rs. 25 lakhs in EPF, Rs. 7 lakhs in PPF, Rs. 12 lakhs in mutual funds, and Rs. 8 lakhs in stocks. Your house has an outstanding loan of Rs. 16.5 lakhs. You invest Rs. 22,000 monthly in mutual funds and Rs. 10,500 in stocks. You also have a term plan of Rs. 2 crores.

Financial Goals

Rs. 3 crores for children's higher education in 11-14 years.
Rs. 1 crore for retirement in the same period.
Review of Current Investments

NPS and EPF: These provide a stable foundation. They offer decent returns with tax benefits.

PPF: While secure and tax-free, PPF has a lock-in period and a lower return rate compared to other investment options.

Mutual Funds: Your current SIPs of Rs. 22,000 are a good start. However, actively managed funds could offer better returns than index funds.

Stocks: Direct stock investments of Rs. 10,500 per month show your willingness to take risks for higher returns.

Term Plan: A term plan of Rs. 2 crores is a wise decision for protecting your family.

Evaluating Investment Options

Actively Managed Mutual Funds

Actively managed funds offer the potential for higher returns due to expert management. Unlike index funds, which replicate a benchmark index, actively managed funds aim to outperform the market.

Advantages of Actively Managed Funds

Expert Management: Professionals make investment decisions based on market conditions and research.

Potential for Higher Returns: Actively managed funds can outperform the market, offering better returns.

Flexibility: Fund managers can adjust the portfolio based on market trends and opportunities.

Disadvantages of Index Funds

Limited Growth: Index funds aim to replicate the market, which limits their growth potential.

No Expert Management: These funds follow a passive investment strategy, missing out on market opportunities.

Direct vs. Regular Funds

While direct funds have lower expense ratios, they lack the guidance of a Certified Financial Planner (CFP). Regular funds, though slightly more expensive, provide access to professional advice.

Advantages of Regular Funds

Professional Guidance: A CFP can help you choose the best funds and adjust your portfolio based on your goals and risk tolerance.

Holistic Financial Planning: CFPs offer a comprehensive approach to financial planning, considering all aspects of your financial life.

Investment Strategies

To achieve your goals of Rs. 3 crores for your children's education and Rs. 1 crore for retirement, consider the following strategies:

Increase SIPs in Mutual Funds

Increase your SIPs from Rs. 22,000 to Rs. 50,000 per month. Use a mix of large-cap, mid-cap, and small-cap funds for diversification.

Allocate a portion to flexi-cap funds to benefit from different market capitalizations.

Enhance Stock Investments

Increase your monthly investment in stocks from Rs. 10,500 to Rs. 15,000. Choose stocks with strong growth potential and diversify across sectors.

Consider investing in blue-chip stocks for stability and consistent returns.

Optimize NPS Contributions

Continue contributing to your NPS account. It provides tax benefits and helps in building a retirement corpus.

Consider increasing your voluntary contributions to maximize returns.

Review and Rebalance Portfolio

Regularly review your portfolio with a CFP. They can help you rebalance based on market conditions and your goals.

Ensure your portfolio remains diversified and aligned with your risk tolerance.

Debt Management

Focus on repaying your home loan. A lower outstanding loan will reduce financial stress.

Use part of your savings to make prepayments on the loan. This will save on interest and help you become debt-free sooner.

Education Planning for Children

Start a dedicated investment plan for your children's education. Consider child-specific mutual funds and systematic investment plans (SIPs).

Estimate future education costs and adjust your investments accordingly. Inflation will affect education expenses, so plan for higher costs.

Retirement Planning

Allocate a portion of your savings towards retirement. Consider equity mutual funds for higher returns.

Supplement your NPS and EPF with additional investments in mutual funds and stocks.

Emergency Fund

Maintain an emergency fund to cover at least six months' expenses. This will provide a safety net in case of unforeseen events.

Keep the emergency fund in a liquid instrument, like a savings account or liquid mutual fund, for easy access.

Tax Planning

Optimize your tax savings by investing in tax-saving instruments like ELSS (Equity Linked Savings Scheme) mutual funds.

Ensure you utilize the benefits of 80C, 80D, and other tax-saving sections.

Future Income and Savings

With your ability to save an additional Rs. 50,000 to Rs. 60,000 per month, consider stepping up your investments annually.

A 5% step-up plan will significantly boost your corpus over the years.

Final Insights

Your financial plan is on the right track. You have a diversified portfolio and clear goals. However, optimizing your investments and increasing your contributions can help you achieve your targets faster. Focus on actively managed mutual funds and regular funds for better returns.

Review and rebalance your portfolio regularly with a CFP's help. Manage your debt effectively and maintain an emergency fund. With disciplined investing and strategic planning, you can achieve your financial goals and secure a bright future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6978 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 2024

Money
Hello Sir , I am 42 years old . I have one child 3 years old. I have invested in Max Life High Growth fund of one lakh per year which is 5 years now . Amount reflecting is 10 lakhs today. 5 years more to go for completion. I have my own house 62 lakhs just purchased . No loans . I recently purchased one more ulip policy midcap momentum 150 max life yearly one lakh for 10 years.I have invested in 3 Bhk apartment amount 1.7 cr which I will complete payment in next year. I earn around 36 to 40 lakhs per year. At present the expense is 50 thousand per month. How much amount should I invest yearly and where to develop a corpus of 5 cr at the age of 60 after deduction for one .child education. Thanks
Ans: First, let's understand your financial situation. You're 42, have a 3-year-old child, and a substantial annual income of Rs 36-40 lakhs. Your expenses are Rs 50,000 per month. You own a house worth Rs 62 lakhs and a 3BHK apartment for Rs 1.7 crores. No loans exist, and you’ve invested in ULIPs.

Compliments and Understanding
It's commendable that you've built a solid financial base and are debt-free. Your foresight in investing for the future is impressive. Let's plan for a corpus of Rs 5 crore by age 60, covering your child's education expenses too.

Evaluating Your Current Investments
Max Life High Growth Fund
You’ve invested Rs 1 lakh per year in Max Life High Growth Fund for 5 years. It's now worth Rs 10 lakhs. This ULIP has 5 more years to go. Evaluating ULIPs for high charges and lower flexibility, consider other options for higher returns.

New ULIP Policy
You recently bought another ULIP policy (Midcap Momentum 150, Max Life) with Rs 1 lakh annually for 10 years. ULIPs have mixed reviews due to their high charges and lower liquidity compared to mutual funds.

Real Estate Investments
Owning a house and a 3BHK apartment indicates a strong asset base. However, real estate might not yield high liquidity or returns compared to other investments. We'll focus on diversifying your portfolio further.

Creating a Financial Plan
Defining Financial Goals
Your primary goal is accumulating Rs 5 crore by age 60. Secondary goals include funding your child’s education. Let's outline steps to achieve these objectives.

Diversification Strategy
Diversification is key to managing risk and maximizing returns. We'll explore various investment options, ensuring a balanced portfolio.

Mutual Funds: A Preferred Investment Avenue
Equity Mutual Funds
Equity mutual funds offer high growth potential, suitable for long-term wealth accumulation. They invest in stocks, providing inflation-beating returns.

Debt Mutual Funds
Debt mutual funds are less risky, providing stable returns. They invest in fixed-income securities like bonds. They suit investors seeking steady income with lower risk.

Hybrid Mutual Funds
Hybrid funds balance risk and return by investing in both equities and debt. They offer a diversified approach, suitable for moderate risk-takers.

Benefits of Regular Funds
Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential provides personalized advice. MFDs help choose funds aligning with your goals and offer ongoing portfolio management.

Systematic Investment Plan (SIP)
Regular Investments
Investing through SIPs in mutual funds is beneficial. It ensures disciplined investing and rupee cost averaging, reducing the impact of market volatility.

Calculating SIP Amount
To accumulate Rs 5 crore by age 60, we need to determine the annual investment amount. Given your financial situation, a significant portion of your income can be allocated towards SIPs in equity and hybrid funds.

Public Provident Fund (PPF)
Long-Term Savings
PPF is a government-backed savings scheme offering attractive interest rates and tax benefits under Section 80C. It suits risk-averse investors seeking assured returns.

PPF Strategy
Investing a portion of your savings in PPF can provide a secure and stable return, balancing the overall risk of your portfolio.

National Pension System (NPS)
Retirement Planning
NPS is a government-sponsored pension scheme offering diversified investments in equities, corporate bonds, and government securities. It provides tax benefits and helps build a retirement corpus.

NPS Contributions
Allocating funds to NPS ensures a steady income post-retirement. It complements other investments, ensuring financial security in later years.

Gold: A Traditional and Reliable Asset
Gold ETFs and Sovereign Gold Bonds
Investing in Gold ETFs and Sovereign Gold Bonds offers benefits of gold without storage hassles. Sovereign Gold Bonds also provide periodic interest, enhancing returns.

Health and Term Insurance
Health Insurance
Comprehensive health insurance is crucial to cover medical expenses, protecting your savings and ensuring quality healthcare.

Term Insurance
Term insurance provides high life cover at low premiums. It ensures financial security for your family in case of your untimely demise. Choose a plan with adequate coverage.

Reviewing and Adjusting Investments
Regular Portfolio Review
Regularly reviewing your investment portfolio ensures it aligns with your goals. Make necessary adjustments based on market conditions and personal circumstances.

Avoiding Emotional Investing
Stick to your financial plan and avoid making investment decisions based on emotions. Make informed decisions and seek professional advice when needed.

Benefits of Actively Managed Funds
Professional Management
Actively managed funds are managed by professional fund managers. They conduct extensive research and make informed investment decisions, aiming to outperform the market.

Potential for Higher Returns
Actively managed funds have the potential to deliver higher returns compared to index funds. Fund managers can take advantage of market opportunities and mitigate risks through active management.

Flexibility
Actively managed funds offer flexibility in investment strategies. Fund managers can adjust the portfolio based on market conditions and economic trends, enhancing performance.

Disadvantages of Index Funds
Lack of Flexibility
Index funds are passively managed and track a specific index. They lack flexibility to adjust to market conditions, which can limit returns.

Potential Underperformance
Index funds may underperform actively managed funds during market downturns. They cannot capitalize on market opportunities or mitigate risks effectively.

Limited Scope
Index funds have limited scope for diversification. They invest in a fixed set of securities, which might not align with your investment goals and risk tolerance.

Final Insights
Achieving a corpus of Rs 5 crore by age 60 requires disciplined investing and strategic planning. Diversifying your investments across mutual funds, PPF, NPS, and gold ensures a balanced and robust portfolio. Engaging a Certified Financial Planner ensures personalized advice and disciplined investing, helping you achieve long-term financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6978 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Asked by Anonymous - Jun 26, 2024Hindi
Money
Hi Sir, Am 31 years old now unmarried. I earn around 2.5 lakhs per month. Have 50K emi for home loan. My monthly expenses comes around 35K. I have 7 lakhs invested in PPF, 4 lakhs in NPS, 2 lakhs in Fixed deposit for emergency and 2 lakhs in stock market. I have no term insurance or health insurance separately. Please guide me how much corpus is needed and how to invest for childs education in future and retirement. How to diversify the investment for the same.
Ans: Great to see you thinking about your financial future. You're already making some wise choices with your investments and savings. Let's dive into a detailed plan to help you achieve your goals. We’ll cover how much corpus you might need and how to diversify your investments.

Understanding Your Current Financial Situation
Monthly Income: Rs. 2.5 lakhs

EMI for Home Loan: Rs. 50,000

Monthly Expenses: Rs. 35,000

Current Investments:

PPF: Rs. 7 lakhs
NPS: Rs. 4 lakhs
Fixed Deposit: Rs. 2 lakhs (Emergency fund)
Stock Market: Rs. 2 lakhs
No Term Insurance or Health Insurance

Goals and Corpus Requirement
Child's Education
Retirement Planning
Estimating Corpus for Child’s Education
Education costs are rising rapidly. Planning early can help manage these expenses comfortably. Assume you need Rs. 25 lakhs for your child’s higher education in today’s terms. Factoring in inflation, this amount will increase significantly over the years.

Estimating Corpus for Retirement
Retirement planning is crucial to maintain your lifestyle post-retirement. You need to consider your expenses, inflation, and life expectancy. Let’s aim for a retirement corpus that can provide a comfortable retirement life. Assume you need Rs. 1 crore for a comfortable retirement in today's terms. This amount will also grow with inflation.

Diversifying Investments for Goals
Mutual Funds: A Strong Growth Engine
Why Mutual Funds?

Mutual funds provide diversification, professional management, and potential for higher returns. They are ideal for long-term goals like education and retirement.

Types of Mutual Funds:

Large-Cap Funds:

Stable returns with lower risk.
Invest in well-established companies.
Mid-Cap and Small-Cap Funds:

Higher growth potential but more volatile.
Suitable for higher risk appetite.
Flexi-Cap Funds:

Flexibility to invest across market caps.
Good for dynamic market conditions.
Sector Funds:

Focus on specific sectors like IT, Pharma, etc.
Higher risk, but can offer higher returns.
Power of Compounding:

Investing regularly in mutual funds through SIPs can leverage the power of compounding. Even small amounts can grow significantly over time.

Advantages of Mutual Funds:

Diversification reduces risk.
Professional management ensures strategic investments.
Flexibility to adjust based on market conditions.
Risks:

Market volatility can impact returns.
Requires long-term commitment for best results.
Public Provident Fund (PPF): Stability and Security
Why PPF?

PPF is a safe and secure investment option with guaranteed returns. It’s ideal for conservative investors and provides tax benefits under Section 80C.

Advantages:

Safe investment with guaranteed returns.
Tax benefits make it attractive.
Suitable for long-term goals like retirement.
Risks:

Lower returns compared to equity investments.
Lock-in period restricts liquidity.
National Pension System (NPS): Long-Term Retirement Planning
Why NPS?

NPS is designed for retirement planning, offering equity exposure with conservative risk. It provides flexibility in choosing asset allocation and fund managers.

Advantages:

Low-cost investment option with tax benefits.
Diversified portfolio managed by professionals.
Flexibility in asset allocation and fund manager choice.
Risks:

Lock-in period until retirement.
Returns depend on market performance and fund manager’s strategy.
Fixed Deposits: Emergency Fund
Why Fixed Deposits?

FDs are a safe place to park your emergency fund. They provide assured returns and liquidity when needed.

Advantages:

Safe and secure with guaranteed returns.
Liquidity for emergencies.
Easy to manage.
Risks:

Lower returns compared to market-linked investments.
Not suitable for long-term wealth creation.
Insurance: Protecting Your Future
Term Insurance:

Term insurance is essential to protect your family’s financial future. It provides a high cover at a low cost.

Health Insurance:

Health insurance protects against high medical costs. It’s crucial to have adequate health coverage.

Creating a Diversified Investment Plan
Step 1: Emergency Fund

Maintain your Rs. 2 lakhs FD for emergencies.
Ensure it covers at least 6-12 months of expenses.
Step 2: Health and Term Insurance

Purchase a term insurance policy with adequate cover.
Get a comprehensive health insurance plan.
Step 3: Child’s Education Fund

Start an SIP in a mix of large-cap and flexi-cap mutual funds.
Increase SIP amount gradually to match inflation.
Step 4: Retirement Fund

Continue investing in PPF and NPS.
Start an SIP in mid-cap and small-cap mutual funds.
Diversify across equity and debt to balance risk.
Optimizing Your SIPs
Increasing your SIP amount periodically can significantly boost your corpus. The power of compounding works best with regular and increasing investments.

Review and Rebalance:

Regularly review your investment portfolio.
Rebalance to stay aligned with your goals and risk tolerance.
A Certified Financial Planner can help you make informed decisions.
Tax Efficiency
Maximize tax benefits under Section 80C with PPF, NPS, and other eligible investments. Tax-efficient investment strategies enhance post-tax returns.

Regular Monitoring and Adjustments
Consistently monitor your investment performance. Stay informed about market trends and make necessary adjustments.

Final Insights
Building a robust financial plan requires discipline and strategic investments. Your current investments are a good start. By diversifying your portfolio, increasing SIPs, and securing adequate insurance, you can achieve your goals of child’s education and retirement. Remember, regular review and adjustments are key to staying on track. Keep up the good work!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Ravi Mittal  |397 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 06, 2024

Asked by Anonymous - Sep 03, 2024Hindi
Listen
Relationship
Me and my bf are resident docters in a hospital .We hardly had time with each other ,but always supported each other in difficult times.Through fights ,breakups ,patch ups ,we were there all in these 3 years .He has always been more career oriented , hardly expressed any feelings on his own for me ,he only expressed or said i love when i asked him too .Now i m in my last year of md exams ,he got selected in aiims delhi dm since he was senior to me .Now he hardly communicates with me ,like in 48 h ,all we do is talk for 2 min ,where he hardly says anything ,sometimes he talks is about work.I have asked him multiple times if anything wrong i did ,he has kept on saying he is busy ,he says atleast i call u ,i hardly have time for anyone.He says all he sees now is his work ,patients and career . I have always adjusted according to him ,now it is becoming difficult to adjust .I cant take the trauma of leaving him ,because i have very important exams in 4 months .He was my only bestfriend ,my guide ,my love .He has been changed person .But i m studying and working almost 20 hrs , how to cope up ,i m all alone in this melodrama ,sometimes i wish i was dead
Ans: Dear Anonymous,
Your feelings are valid. It is indeed difficult to adjust to an unexpressive partner. One out of two things can be happening here- one, he does not know how to express his emotions; that is who he is fundamentally. Two, the work pressure and hectic hours have made him detached. You can try having an open conversation with him about it and let him know that you are not being able to carry on like this. Communicate your concerns and how his attitude toward you has affected your mental health. That is the only way to move forward. After the conversation either of two things will happen- it will be a wake-up call for him and things will change for the better. Or, he will continue to behave the same way and you have to rethink the relationship. My suggestion is to have the talk after your exams. I know you think he is your everything, but you are your everything. Do not let this relationship waste the years of hard work you have put into your studies. Focus on yourself and trust me when I say this- value yourself the way you want others to value you. If you don't, why would anyone else?

I hope this helps. Best Wishes.

...Read more

Anu

Anu Krishna  |1274 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 06, 2024

Asked by Anonymous - Oct 31, 2024
Relationship
I am married for last 3 years. I found out about my wife's sexual past just months into our marriage. I even enquired her about her past before our marriage and told her that I don't tolerate lies and don't believe in premarital sex but she still lied to me and deceived into a fraud marriage. So I started sleeping with prostitutes and call girls as a revenge. I even had an affair with a divorced woman but that didn't last long. I know I didn't do anything wrong. She is the one is in the wrong. She deceived me into a fraud marriage. Should I forgive her and live with her?
Ans: Dear Anonymous,
instead of dealing with the problem at hand, you decided to go and create more problems?
What prevented you from actually talking to your wife. If you felt cheated, was it not possible for you to channel the anger by having a conversation with her about it? Revenge never helped anyone, but well...
Now, by blaming her, what can happen is that she will defend and you will again accuse and this will go on...
So, yes you are feeling cheated and deceived by her. You have two ways of approaching it. rebuild your marriage and start with a clean slate which means she cannot keep secrets with you anymore OR you can build more anger which is bound to destroy the marriage. I would suggest the first option where you get a fair chance to express how you feel to her and also come clean with your revenge scene with her...this may help both of you put things aside and rebuild the connection. Give this a fair shot!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
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Anu Krishna  |1274 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 06, 2024

Asked by Anonymous - Nov 05, 2024Hindi
Relationship
Hello, I am a 42 year old woman with a 14 year old boy and a 12 year old girl. Ours was an arranged marriage. I got married at age 23 and my husband is just 2 years older to me. Right from the beginning my husband is great at cooking, household chores etc but never expresses romance openly. I was always a emotional woman who slowly turned to him and stopped expressing my needs well. So far out marriage was great cos I avoided confrontations and arguments. Only thing was he was always a critical person and I am emotional girl . Since I cld not express myself clearly as he never heard me, my communication with him sounded nagging, comparing and complaining. In 2011, he cheated on me and I learnt on his affair. I did not know how to process this phase so immediately forgave him within 2-3 days and even ended up being pregnant with my daughter. However he never used to speak on his past affair not were my feelings resolved. Whenever he would speak rudely or yelled at kids or me for little things, the past trauma would trigger and I would openly remind him of his grave mistake. This went on and he would get agitated and keep quiet. One day he did tell me that lifelong he needs to live with this past of me reminding him. But he has never understood the trauma I have gone through. I have just repressed it all along. Cut short 2024- there is lots of resentment with us. In 2022, I saw messages that he exchanged with another lady colleague on romantic songs , good morning messages and they would casually meet for lunch etc . This time I flew in rage and assumed he has cheated on me again. Told him first time I was a fool who didn't notice things right under my nose and now this is the latest. We had a big fight. I reminded him of his dirty past. At first he looked shocked from these allegations and told me he will clarify everything later. But next day in 2022 , when I asked him, he appeared to be a changed man and sounded more confident that he didn't do anything wrong. I pestered him to take me to office, we went to his office I met this lady and politely told her to stop sending good morning messages to my husband. I indirectly told her I have trust issues because of a past but did not elaborate. My husband who had taken me to the office , later was annoyed because apparently the woman colleague was annoyed about me coming to office and also mentioned about my trust issues. At this point this great husband spilt out to her that he had cheated on me. I never ever disclosed anything to her. Later he messaged me saying he was very annoyed and upset that I disclosed the dirty past to his colleague and if anything happens to his job he will never forgive me. I did tell him I never disclosed but he did not belive me. From 2022 until now we are almost in a silent divorce phase. We sleep in different bedroom and only communicate basic stuff on milk, curd , veggies etc He had never connected to me emotionally and would always get annoyed when I wld cry or show my frustrations. Now after all this he has literally cut me off emotionally. In this period from 2022-till now I did try to get back to normal but his vibes are very negative and disconnected. So even I too started distancing myself. During 2022, after the incident he had mentioned on how it is important to work, ve independent and how he favours open relationships ( non sexually). I was always working but earned lesser and used to depend on him a lot. Now I have changed in these 2 years, I have a better job and am not at all dependent on him emotionally, physically or mentally. Infact I pitch in to our household expenses.Our lives are totally disconnected and we there just for the kids. He cooks for all of us, I take care of remaining chores and help them in their studies . We don't attend family events and this has left many guessing on our status. I have lot of unresolved emotions and since he cannot process my emotions or least interested to hear me out I don't know when I will explode. I am just repressing my feelings and keeping a happy cheerful face for the family and kids. We even went for a vacation for kids sake where we just interacted with kids. Kids know things are not allright and pray for us together. I know this isn't healthy for me and I will invite psychosomatic issues in life later on. I am still attached to him and maybe once he expresses a sorry or a remorse and have a hope we can fall back in love again. Why can he never understand that emotional trauma that I have gone through Inspite of being loyal to him always. For once if he just uses kind words and apologises I will forever love him and forget everything.
Ans: Dear Anonymous,
Your husband perhaps is someone who is not great at conflict management; he finds it easier to avoid it and avoidance can mean that he hopes that it will go away or that you will stop talking about it or that he can find ways of actually pinning the blame on you for the way that he is feeling.
So, you will come across as nagging and may also feel guilty for asking him to listen to the way that you feel about the past incident. This is classic avoidance response from him that will make you wonder of you are actually wrong and at some point you may even start justifying his actions.
Repression is temporary; eventually all the emotions will collect themselves and hit back when you least expect it. If you want him to hear you and the way you have felt about his cheating, he will again get pushed into an avoidance mode. He has not learned any other way of handling conflicts. So, either you can go to couples counseling together OR you accept this side of him. Sounds too much to do, yeah? But how can you change a person who does not want to change. Some people also cannot express their love the way you have mentioned.
Since you still love him, I can only assume that the marriage holds a lot of significance for you. Then you can be happy only when he changes OR you accept him... which one seems more doable, start with that first...who knows if an external person like an expert can actually guide the two of you, things may fall in place!
I would also suggest requesting him for an honest chat where he is also in a space to LISTEN to you...try...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

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