Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Kirtan A Shah | Answer |Ask -Follow

MF Expert, Financial Planner - Answered on Sep 22, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more

Question by Ravi on Aug 23, 2023Hindi

Listen

Money

Hello Sir, I am a 32 years salaried employee having saving upto 2lakhs now. recently I have taken pre-owned car worth 4 lakhs. Could you please suggest me investment plan and for atleast minimum 3-5 years with good returns.

Ans: If your question is where to invest the 2L, split the same into 2 funds I mentioned below and STP over the next 6 months,

ICICI Value Discovery
Kotak Emerging

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

Ramalingam Kalirajan |8913 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 06, 2024

Question by Suhas - May 02, 2024Hindi

Listen

Money

Hello Experts, Greetings Im 33yr old and was earning just to make ends meet until now.Now I have a job where I can save 1.5 lakhs per month. I have short term goal to buy a car worth 10 lakhs in next 1 year or so. . suggest an investment strategy so that I can plan accordingly to achieve this goal. Also with about 50,000 I can invest in equity and debt with 60%-40% ratio for a long time. please suggest SIPs for the same. Thank you

Ans: Congratulations on your new job and the opportunity to save significantly each month! Let's outline a strategy to help you achieve your short-term goal of buying a car worth 10 lakhs within the next year, as well as a long-term investment plan for your equity and debt portfolio:

Short-Term Goal (Car Purchase):
Since your goal is to buy a car within the next year, it's crucial to focus on low-risk, liquid investment options to ensure the safety of your capital.
Consider investing your savings in a combination of fixed deposits (FDs), liquid mutual funds, or short-term debt funds. These options provide relatively stable returns and allow for easy access to funds when needed.
Aim to allocate your savings in such a way that you can accumulate 10 lakhs within the specified timeframe. Calculate the required monthly contribution based on your investment choice and the expected rate of return.
Long-Term Investment (Equity and Debt):
With a monthly surplus of 50,000 for long-term investments, you have the opportunity to build a well-diversified portfolio that balances growth potential and risk.
Considering your risk tolerance and the long investment horizon, a 60%-40% allocation to equity and debt, respectively, seems reasonable.
For equity investments, consider investing in a mix of large-cap, mid-cap, and multi-cap mutual funds through SIPs. These funds offer exposure to different segments of the market and can help diversify your portfolio.
For debt investments, opt for high-quality debt funds or fixed income options like PPF or debt-oriented mutual funds. These instruments provide stability and regular income while preserving capital.
Regularly review your portfolio's performance and make adjustments as needed to stay aligned with your financial goals and risk tolerance.
For your short-term goal, prioritize capital preservation and liquidity, while for your long-term investment portfolio, focus on creating a balanced mix of equity and debt instruments to achieve your financial objectives.

Best of luck with your investments and car purchase journey!

Ramalingam Kalirajan |8913 Answers |Ask -Follow

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

Asked by Anonymous - Aug 05, 2024Hindi

Money

hi i am working in govt university as assistant professor. my age is 44 years. my annual income 14 lakhs. i am invested only in real state through personal loan. emi 29000. no other investment has been done . i have two sons . pl suggest the investment plan for me

Ans: With an annual income of Rs 14 lakhs, your financial stability is commendable. However, your primary investment is in real estate through a personal loan, with an EMI of Rs 29,000. Having two sons also means you need to plan for their future expenses, including education and other essential needs.

Your current investment strategy, focused solely on real estate, may not be the most effective approach for long-term financial growth and security. Diversification is key to ensuring a balanced and robust financial future.

Assessing Your Investment Goals
Before diving into specific investment options, it's essential to define your financial goals. These might include:

Building a Retirement Corpus: You should plan for a comfortable retirement, given your current age of 44 years. Ideally, you would want to retire with a significant corpus that can provide a steady income post-retirement.

Children’s Education: With two sons, planning for their higher education should be a priority. Education costs are rising, and it's wise to start investing early to meet these expenses without financial strain.

Emergency Fund: Having an emergency fund is crucial. It ensures you have immediate access to funds in case of unforeseen circumstances. Typically, an emergency fund should cover 6-12 months of living expenses.

Health and Life Insurance: Adequate health and life insurance coverage is necessary to protect your family in case of any unfortunate event. This ensures that your family’s financial future is secure.

Building a Diversified Investment Portfolio
Now that you have a clear understanding of your financial goals, let’s explore how to diversify your investment portfolio beyond real estate.

1. Systematic Investment in Mutual Funds
Mutual funds offer an excellent opportunity to grow your wealth over time. They provide diversification, professional management, and a range of options to suit different risk appetites.

Equity Mutual Funds: These funds invest in stocks and have the potential for higher returns over the long term. Given your age, you can consider a mix of large-cap, mid-cap, and multi-cap funds. These funds are ideal for long-term goals like retirement and children's education.

Debt Mutual Funds: These are safer options compared to equity funds and are suitable for short to medium-term goals. They invest in fixed-income securities and provide steady returns with lower risk. Consider allocating a portion of your investments to debt funds to balance risk.

Balanced Funds: These funds invest in both equities and debt instruments, offering a balance of growth and stability. They are suitable for investors looking for moderate risk with steady returns.

Why Choose Actively Managed Funds?

Avoid index funds as they simply track the market and do not provide the expertise of a fund manager. Actively managed funds, on the other hand, are managed by experts who aim to outperform the market. This approach can potentially provide better returns, especially in a fluctuating market.

2. Systematic Investment Plan (SIP)
A SIP is a disciplined way to invest regularly in mutual funds. It allows you to invest a fixed amount every month, regardless of market conditions. This strategy helps in rupee cost averaging and building a substantial corpus over time.

Given your EMI of Rs 29,000, it’s advisable to start with a SIP amount that you are comfortable with. Even a modest monthly investment can grow significantly over the years due to the power of compounding.

3. Public Provident Fund (PPF)
The PPF is a long-term savings scheme backed by the government, offering tax benefits and attractive interest rates. It is a risk-free investment option suitable for conservative investors. The PPF comes with a lock-in period of 15 years, making it ideal for building a retirement corpus or meeting long-term goals like your children’s education.

4. Term Insurance
As a responsible family person, securing your family's future is paramount. A term insurance policy provides a high life cover at an affordable premium. Ensure you have adequate term insurance that covers your family’s needs in case of your untimely demise. The coverage should be at least 10-15 times your annual income to provide sufficient financial security to your family.

5. Health Insurance
Given the rising healthcare costs, having adequate health insurance coverage is essential. Ensure you have a comprehensive health insurance policy that covers yourself and your family. You can opt for a family floater policy, which covers all members under a single plan. This will help you manage any unforeseen medical expenses without dipping into your savings.

6. Emergency Fund
If you don't already have one, start building an emergency fund immediately. This fund should be easily accessible and stored in a liquid instrument such as a savings account or liquid mutual fund. Aim to save 6-12 months of your living expenses, which will cover your family’s needs in case of emergencies like job loss or medical crises.

Steps to Implement Your Investment Plan
Now that we have discussed various investment options, here’s how you can implement this plan:

Step 1: Assess Your Monthly Budget: After accounting for your EMI, determine how much you can comfortably allocate towards investments.

Step 2: Start SIPs in Mutual Funds: Begin with a SIP in a balanced mutual fund. As you become comfortable, gradually increase the SIP amount and diversify into equity and debt funds.

Step 3: Open a PPF Account: Consider opening a PPF account and start contributing regularly. This will be part of your long-term savings plan.

Step 4: Purchase Adequate Insurance: Ensure you have both term and health insurance in place. Review your existing coverage and enhance it if necessary.

Step 5: Build an Emergency Fund: Gradually build an emergency fund by setting aside a fixed amount every month. Keep this fund liquid and accessible.

Step 6: Regularly Review Your Portfolio: Periodically review your investment portfolio to ensure it aligns with your financial goals. Adjust your investments if necessary, based on market conditions and your risk tolerance.

Final Insights
You have already taken the first step towards financial security by investing in real estate. However, relying solely on real estate is not enough to meet your long-term goals. Diversifying your portfolio with mutual funds, PPF, and insurance will provide a balanced approach to wealth creation and risk management.

By systematically investing in mutual funds through SIPs, you can build a substantial corpus for your retirement and your children’s education. Additionally, securing adequate term and health insurance will protect your family’s future.

Remember, it's never too late to start investing. By taking these steps, you will be on the right path to achieving your financial goals and securing a comfortable future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |8913 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 16, 2024

Asked by Anonymous - Aug 14, 2024Hindi

Money

Sir.. My wife has invested close to 90 lakhs in Stocks. We have 12 lakhs in FD and around 10 lak in MF. My monthly net salary is 1.8 lakhs. I hv a car loan and i pay a monthly emi of 13000. I want to invest on some Long investment plans with better returnz i am not really happy to have a large sum in stocks which is unpredictable. Can you pls suggest some plans

Ans: Your current financial situation is commendable. You have a healthy monthly income of Rs. 1.8 lakhs. Your wife has invested Rs. 90 lakhs in stocks, and you have Rs. 12 lakhs in Fixed Deposits (FDs) and Rs. 10 lakhs in Mutual Funds (MFs). You also have a car loan with an EMI of Rs. 13,000.

Your current portfolio shows a preference for stocks and FDs. Stocks are volatile, and FDs offer lower returns. This imbalance may not be aligned with your long-term financial goals.

Importance of Diversification
It is important to diversify your investments. Diversification reduces risk and ensures stable returns over time. Your current portfolio is heavily tilted towards stocks, which are unpredictable. By spreading your investments across different asset classes, you can create a balanced portfolio that offers better returns with reduced risk.

Consider investing in a mix of Mutual Funds, bonds, and other investment options. This strategy will help in creating a more balanced portfolio.

Evaluating Mutual Funds
Mutual Funds are a good option for long-term investments. They offer diversification and professional management. Since you already have Rs. 10 lakhs in Mutual Funds, it is wise to explore this option further.

You can consider investing in different categories of Mutual Funds:

Equity Mutual Funds: These funds invest in stocks and are suitable for long-term growth. They have the potential to offer higher returns compared to other investments. However, they come with higher risk.

Debt Mutual Funds: These funds invest in fixed income securities like bonds and government securities. They offer stable returns with lower risk. They are suitable for those who want regular income and capital protection.

Hybrid Mutual Funds: These funds invest in a mix of equity and debt instruments. They offer a balance of risk and return. They are suitable for investors looking for moderate growth with controlled risk.

Investing in a combination of these funds can help you achieve your financial goals while maintaining a balanced risk profile.

Importance of Regular Investment
Regular investment through Systematic Investment Plans (SIPs) is a disciplined approach. It allows you to invest a fixed amount regularly in Mutual Funds. SIPs help in averaging the cost of investment and reduce the impact of market volatility.

With your monthly income, you can easily allocate a portion towards SIPs. This will help in building a substantial corpus over time. Investing in SIPs ensures that you do not need to time the market, which is often difficult and risky.

Exploring Tax-Saving Investments
Tax-saving investments are an essential part of financial planning. They help in reducing your tax liability while growing your wealth. You can consider investing in tax-saving Mutual Funds like ELSS (Equity Linked Savings Scheme). These funds offer tax benefits under Section 80C of the Income Tax Act.

Other tax-saving options include Public Provident Fund (PPF), National Savings Certificate (NSC), and Tax-saving Fixed Deposits. These investments provide tax benefits and help in building a long-term corpus.

Fixed Deposits and Bonds
Fixed Deposits (FDs) offer safety and guaranteed returns. However, they provide lower returns compared to other investment options. Since you already have Rs. 12 lakhs in FDs, consider keeping a portion for emergency funds.

You can also explore bonds as an alternative to FDs. Bonds offer fixed interest income and are relatively safe. Investing in government or corporate bonds can provide better returns compared to FDs.

Importance of Emergency Fund
An emergency fund is essential for financial stability. It acts as a safety net in case of unforeseen expenses. It is advisable to keep 6 to 12 months of your monthly expenses in a liquid fund or a savings account.

Since you already have FDs, you can use a portion of them as your emergency fund. This ensures that you have immediate access to funds in case of emergencies.

Rebalancing Your Portfolio
Rebalancing is crucial to maintain the desired risk level in your portfolio. Since your portfolio is heavily invested in stocks, it is wise to rebalance it.

Consider reducing exposure to stocks and reallocating funds to other asset classes like Mutual Funds, bonds, and FDs. This will help in reducing risk and ensuring stable returns.

Long-Term Investment Strategy
A long-term investment strategy is essential for wealth creation. It allows your investments to grow over time through the power of compounding. Your current portfolio shows a mix of long-term and short-term investments.

It is important to align your investments with your financial goals. Consider setting specific goals like retirement, children’s education, and buying a house. Based on these goals, you can choose suitable investment options and allocate funds accordingly.

Risk Management
Risk management is an integral part of financial planning. It ensures that your investments are protected from unforeseen risks. Since stocks are volatile, it is wise to have a mix of safe investments in your portfolio.

Investing in debt funds, bonds, and FDs can help in reducing overall risk. It is also important to have adequate insurance coverage to protect against unforeseen events.

Importance of Regular Monitoring
Regular monitoring of your investments is crucial for achieving your financial goals. It allows you to track the performance of your investments and make necessary adjustments.

Consider reviewing your portfolio at least once a year. This will help in identifying underperforming assets and reallocating funds to better-performing options.

Consulting a Certified Financial Planner
A Certified Financial Planner can provide personalized advice based on your financial situation. They can help in creating a comprehensive financial plan that aligns with your goals.

Consulting a professional ensures that your investments are optimized for maximum returns with minimum risk. They can also provide guidance on tax-saving strategies and retirement planning.

Final Insights
Your current portfolio is skewed towards stocks, which are unpredictable. Diversification is key to achieving financial stability and growth.

Consider reallocating your investments to Mutual Funds, bonds, and tax-saving instruments. This will help in reducing risk and ensuring better returns.

Regular investment through SIPs and rebalancing your portfolio will keep you on track to achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Milind Vadjikar | Answer |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Dec 19, 2024

Question by Rohan - Dec 19, 2024Hindi

Listen

Money

Dear Sir, i am 48 year old, kindly suggest some good plan to invest, i can invest roughly around 30000 for next 1 years with increase of 10% every year for next 7 years. I am looking for 1 crore to 3 crore saving. Till i reach 55 years, Would like to save for pension also suggest me good pension return plan

Ans: Hello;

An investment of 30 K with 10% top-up each year will be required to be continued for 10 years minimum to reach a corpus of 1 Cr(12% return considered from pure equity mutual funds).

You may invest in a combination of flexicap mutual fund and a Large and Midcap type mutual fund in proportion of 50:50.

For pension you may invest in NPS with active choice and maximum possible equity allocation. Contributions can continue upto 70 age.

Happy Investing;
X: @mars_invest

Ramalingam Kalirajan |8913 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 07, 2025

Question by Satyanarayan - Jan 27, 2025Hindi

Listen

Money

Salaried income net 80000. EMIs for Car loan and personal loan is Rs.40000/-. Monthly expenses about 20000/-. Retirement in 2031. No FD or PPF. EPF of Rs.1800pm only deduction from salary. Son in class 10th. Daughter in 7th. Living in father's property. What kind of investment plan I should adopt for 5 to 7 years.

Ans: Your financial planning for the next 5 to 7 years is crucial. With retirement in 2031, loan EMIs, and growing education costs, a structured plan is necessary.

Current Financial Situation
Monthly income: Rs. 80,000
Loan EMIs: Rs. 40,000
Household expenses: Rs. 20,000
Net savings potential: Rs. 20,000
No fixed deposits or PPF investments
EPF deduction: Rs. 1,800 per month
Living in a family-owned house
Key Financial Priorities
Clearing personal and car loans before retirement
Building an education fund for children
Creating a retirement corpus for post-2031 expenses
Ensuring sufficient liquidity for emergencies
Debt Repayment Strategy
Loans take up 50% of your income.
Prepayment of personal loan should be a priority.
Car loans should be cleared before retirement.
Reducing debt improves future investment capacity.
Emergency Fund Creation
At least 6 months' expenses should be set aside.
The fund should cover loan EMIs and essentials.
Investing in safe, liquid instruments is ideal.
Investment Plan for 5-7 Years
A mix of growth and stability is needed.
Mid-cap and small-cap exposure should be limited.
Actively managed funds offer better returns than index funds.
Debt investments ensure safety for short-term goals.
A combination of equity and hybrid funds can balance risk.
Education Planning for Children
Your son will need funds in 2-3 years.
Your daughter will need funds in 6-8 years.
A mix of equity and debt can provide growth with stability.
Avoiding high-risk investments ensures goal fulfillment.
Retirement Planning Approach
Your EPF contribution is minimal.
A dedicated retirement corpus must be created.
Investments should provide returns that beat inflation.
Structured investment through a Certified Financial Planner ensures stability.
Avoiding Direct Mutual Funds
Direct plans lack professional oversight.
A Certified Financial Planner helps manage risk better.
Regular funds offer expert-driven investment choices.
Portfolio rebalancing is essential for long-term success.
Taxation Considerations
Long-term capital gains above Rs. 1.25 lakh are taxed at 12.5%.
Short-term gains attract a 20% tax.
Debt fund taxation depends on your income tax slab.
Efficient tax planning ensures maximum post-tax returns.
Finally
Debt clearance should be a top priority.
Education funds must be secured with a balanced approach.
Retirement investments should be structured for stability.
Market corrections can be used for additional investments.
Consulting a Certified Financial Planner ensures a structured financial journey.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Latest Questions

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Career

I have two colleges in hand I am unable to choose Vit chennai Cons Fees is high(4.5) Electrical and cs (not desired , but can change in second year ) Pros Close to home (dayscholar) Tier 1 and reputation Amritha cbe Cons Should stay far from home Ai and ds(quantum specialisation)( not completely satisfied but okay ) Pros The branch (ai and ds) Fees (2.9+hostel).......

Ans: Hello dear.
The way in which you put the contents is not clear. Yet trying to collect the information to reply to you. Here is the preference order for you: (1) CS VIT Chennai (2) Amritha. Prefer the CSE branch with AI ML specialization if possible.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Career

Sir, i got a crl of 25000 in jee advance and a rabk of 71000 in jee mains and i am a ews,andhra pradesh candidate, I got amrita coimbatore cse in 4th category,pes rr campus cse,ap eamcet of rank 2300(for which i will get vit,srm amaravathi campuses with free of cost),comedk rank of 7800,mit rank 2989,sastra cse,snu cse And last date for pes is july 7th(before josaa rounds 5,6) and a bitsat score of 184 in 1st attempt and trying to get a score of 250 in 2nd attempt Sir ,Is it worth for waiting till josaa 5,6 by leaving pes? Can you please suggest me to join a good ROI college!??

Ans: Hello dear.
The answer to your question has already been provided. Please copy and paste the following link into your browser to read it. Thank you. Link: https://gurus.rediff.com/question/qdtl/career/got-rank-crl-25000-jee-advance-71000-rank-jee-mains/5213692

Ramalingam Kalirajan |8913 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Money

Hi Ramalingam, I'm 33 and married, expecting a baby due in couple of months. I have a homeloan of 60L with EMI of 55k and tenure of 18 year to go. I have started investing in MF recently. Index fund(nifty 50 and nifty defense): 3.9L Large: 1L Large and midcap: 4.6L Flexi:3.2L Multicap: 1L Midcap: 85k Small: 1.75L Tech sector: 50k Equity infra sector: 1.7L SBI psu: 1.4 EPF Balance: 8L Savings: 10L Please advise how should I allocate my SIP moving forward if I have saving of around 5L per month. I want to invest in MF for better returns instead of clearing off the homeloan which has a lower interest rate. I'm looking to have funds for retirement. Please advise.

Ans: You are 33, expecting a baby soon, and wisely planning both your loan and future funds. You already have strong savings and investments. This outlook gives us a great base to build a 360-degree plan for retirement, goal purposes, and balanced wealth growth. Let’s go step by step.

1. Financial Snapshot Summary
Age 33, married, expecting a baby

Home loan: Rs.?60?lakh, EMI Rs.?55k monthly, 18 years remaining

Monthly savings ability: about Rs.?5?lakh

Existing investments:

Index funds (Nifty 50 and Nifty Defence): Rs.?3.9?lakh

Large cap: Rs.?1?lakh

Large & mid cap: Rs.?4.6?lakh

Flexi cap: Rs.?3.2?lakh

Multi cap: Rs.?1?lakh

Mid cap: Rs.?85k

Small cap: Rs.?1.75?lakh

Tech sector: Rs.?50k

Infra sector: Rs.?1.7?lakh

PSU fund: Rs.?1.4?lakh

EPF balance: Rs.?8?lakh

Savings account: Rs.?10?lakh

You are already diversified across equity categories and hold good liquidity. Excellent discipline.

2. Understanding Your Priorities
Baby’s arrival and early family needs

Retirement corpus building

Managing home loan without rushing to pre-pay

Growing assets wisely rather than clearing low-interest debt

Your home loan interest is low compared to market returns possible via equity investments. Therefore, shifting focus to wealth creation is sensible.

3. Risk & Liquidity Assessment
Your savings of Rs.?10?lakh plus existing liquidity provide good emergency buffer

EPF of Rs.?8?lakh ensures retirement base

Continue to maintain liquidity of 6 months’ expense in safe instruments

Keep updating emergency cushion as family expands

This ensures you avoid disrupting your investment in case of unforeseen needs.

4. Why Not Clear Home Loan Early
Home loan interest is relatively low (~8–9%)

Equity returns over long term can outperform that

Paying loan early sacrifices the benefit of compounding growth

Instead of clearing, channel money into goal-based investments

Continue standard EMI payment to maintain discipline

You can review part-prepayment later if you receive a bonus or surplus income.

5. Reconsider Index Fund Exposure
You hold index funds tracking Nifty 50 and a sector index. But:

Index funds lack active intervention during downturns

No flexibility—mirror entire index performance

Sectoral index funds are highly volatile and cyclical

You already hold sector funds (Tech and Infra) separately

Actively managed funds offer better downside management

They can allocate, exit, and adjust as economic conditions change

Recommend gradually transitioning index allocations to active large-cap or balanced funds with guidance from CFP-led distributor.

6. Asset Allocation & SIP Repositioning
You aim to invest Rs.?5?lakh monthly and build a long-term wealth engine. Here's a refined strategy:

Equity Allocation (60–65%)

Large / Flexi Cap Active Equity: Rs.?1.25?lakh

Mid Cap Active Equity: Rs.?50,000

Small Cap Active Equity: Rs.?25,000

Multi / Hybrid Equity (Balanced Advantage): Rs.?50,000

ELSS Tax Saver: Rs.?25,000

Debt Allocation (25–30%)

Short-to-Intermediate Debt Funds: Rs.?50,000

Children’s Hybrid Fund (short horizon bucket): Rs.?25,000

Other

Allocation to overseas or thematic equity capped at 5–10% through active funds

This structure offers growth and risk balance while keeping liquidity.

7. Children’s Goal Fund Planning
Your baby arrives soon. Early-stage costs include delivery, essentials, childcare. For 1–2 year need:

Create a “Baby Care Fund” of Rs.?3–4?lakh

Use short-term debt or hybrid mutual funds

Systematically invest Rs.?50k monthly or use part of savings

This ensures funds ready around the time needs arise

Post that, start “Education & Future Security” goal fund via mid/large-cap SIPs.

8. Maintaining SIP Priorities
Your current investment portfolio includes various equity exposures. To make it cohesive:

Reassess index fund exposure and reduce gradually

Continue and increase active equity SIPs as outlined

Use CFP advice to choose 3–4 high-conviction active funds

Avoid direct plans—use CFP-backed distributor for discipline

Balanced funds help cushion during volatile periods

As you invest Rs.?5?lakh monthly, implement the above allocation gradually, not abruptly.

9. Why Avoid Direct and Index Funds
Direct Funds: No expert support, fund monitoring, exit guidance.
Index Funds: No flexibility, follow blind script, no crisis management.
Agile Active Funds via CFP: Strategic stock moves, timely shifts, tailored for your risk.

Your goals need proactive fund management, not auto-pilot passive tools.

10. Retirement Corpus Plan
You are 33, planning retirement maybe at age 60. You have about 27 years of horizon.

Using structured SIPs and portfolio growth, you can:

Build a strong corpus via equity

Maintain a stable allocation of 60–70% equity + 30–40% debt

Gradually tilt towards debt as you near retirement

Regularly review portfolio health fall under CFP supervision

Keep monitoring inflation-adjusted goal progress

This method ensures a secure retirement plan.

11. Insurance & Protection
You didn’t mention insurance. With a baby on the way:

Health insurance – at least Rs.?10–15?lakh family floater

Term life insurance – Minimum Rs.?1–2?crore to cover loan and dependents

Avoid ULIPs or endowment plans—go for pure term and health

Take these via CFP recommended provider and cover soon

Insurance protects your financial plan against sudden events.

12. Debt Management after EMI
Your EMI of Rs.?55k runs for 18 years.

After baby and higher expenses:

Continue EMI as is

Avoid prepayment unless you receive a sizable bonus

When EMI ends, recalculate funds available for SIPs and goals

Use that opportunity to increase SIP amounts further

Use part of EMI funds towards retirement or asset-building

This planned shift after EMI end creates space for accelerated growth.

13. Liquidity, Reserves, and Top-Ups
Your current savings and surge capacity of Rs.?5?lakh enable flexibility:

Continue keeping liquidity of 4–6 months’ expenses

Keep separate corner for baby fund and emergency

Use surplus income for goal-linked investments

Avoid unnecessary lifestyle inflation despite high income

Top-up SIPs when salary or bonus increases

Discipline in surplus use will compound your wealth efficiently.

14. Tax Planning & Gains
Use ELSS SIPs for 80C benefits

Equity fund LTCG taxed 12.5% above Rs.?1.25?lakh per annum

Debt / hybrids taxed as per income slab

Use balanced and debt funds to optimise taxable interest

File ITR, claim deductions, and plan redemptions to control tax incidence

This keeps tax bite minimal and saves more for your goals.

15. Monitoring & Rebalancing
Review portfolio performance and fund objectives every six months

Rebalance asset mix when any category drifts >5%

Stop or shift under-performing funds after review

Avoid knee-jerk reactions—stay thought-through

CFP guidance ensures structured portfolio management

Consistent monitoring protects you from drift and decay.

16. Asset Creation vs Real Estate
You didn’t mention owning other real estate. But goal stated flat purchase may fit as goals.

However, central financial focus is investing in financial assets:

Equity, hybrid, and debt instruments remain central

Property can be considered separately once you hold large financial corpus

Keeping financial assets liquid allows better flexibility

Avoid overloading liquidity for real estate purchases

Enhancing financial assets comes first—it empowers freedom and choice.

17. Lifestyle & Support
Your surplus income supports lifestyle well.

Avoid big-ticket impulsive spending

Use value-based spending for travel, family events

Invest in skills or certification to grow income

Create additional income streams (freelance, side projects)

This increases your saving ability further

Lifestyle and income both support your wealth journey.

18. Succession & Estate Planning
With a baby on the way, important to secure your legacy:

Ensure you have proper nomination for all investments

Create a will or simplified estate plan

Appoint guardians, trustees as needed

This ensures smooth wealth transfer and peace of mind

These administrative steps protect your family and planning.

19. Roadmap Execution Timeline
Prioritize and allocate baby fund in short-term debt

Shift index and sectoral funds gradually to active funds

Structure SIP allocation for retirement and hybrid safety

Purchase insurance soon for protection

Continue EMI; use part payment only if surplus

Post-EMI, increase SIP allocation with added liquidity

Review portfolio semi-annually for performance and rebalance

Plan for education/long-term goals via systematic planning

Keep emergency reserve intact and live beneath means

Write a will and estate file once baby arrives

Stay consistent with your 5-lakh monthly allocation. The structure supports multiple goals.

Final Insights
Your income and savings are robust—very encouraging

Shift towards active, goal-based funds guided by CFP

Maintain discipline in EMI, insurance, and liquidity

Create dedicated buckets for family and retirement

Monitor and rebalance regularly, not reactively

Invest in yourself and grow income to amplify wealth

Be flexible—adjust plans as baby's arrival and life shifts

This structured 360-degree approach balances family, future, and financial freedom.

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

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Career

Sir my son is very keen for mechanical engineering specifically automobile engineering where he has a choice between Manipal Jaipur and Thapar . Kindly suggest which one to choose Automobile engineering in main campus or Manipal Jaipur / Thapar for mechanical

Ans: Hello dear
You did not mentioned anything about his score and rank. Unable to guide you. If he is interested in Mechanical Engg, then prefer Manial Jaipur as 1st choice and Thapar as 2nd. The final decision will be yours.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Career

Sir,i got rank of crl of 25000 in jee advance,71000 rank in jee mains and i am from andhra pradesh(home state) and i am an ews candidate and i got amrita coimbatore cse in 4th category,pes rr campus cse core,2300 rank in ap eamcet so i will get vit,srm (amaravathi campuses) free seat(except hostel),comedk rank of 7800, Pes cancelation last date july 7 i.e before round 5,6 in josaa (And i am trying bitsat second attempt after scoring 184 marks in 1st attempt) Can i wait till josaa5,6 or prefer other colleges? Please suggest me sir!

Ans: Hello dear
Wait for JosAA 5 and 6, as well as for the 2nd attempt of BITSAT. Based on the mentioned scores from JEE Advanced and your category, the chances of gaining admission to good colleges are moderate to slim. With your COMEDK rank, there are opportunities to secure a seat in a good college with a decent branch. According to the information you provided, here is the preferred order: (1) CSE @ SRM (2) RR Campus (3) VIT (4) PES
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Question by Mallikarjuna - Jun 13, 2025

Career

Dear sir My daughter has chances of getting seat in RVITM for Information Science and ECE(VLSI) in BIT. Which one is better amongst two

Ans: Hello Mallikarjuna
You did not mention any details about the entrance exam and score/rank, so I am unable to suggest appropriately. However, I recommend ECE (VLSI) @ BIT if it is offered to your daughter.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Nayagam P P |6244 Answers |Ask -Follow

Career Counsellor - Answered on Jun 13, 2025

Asked by Anonymous - Jun 10, 2025

Career

Integrated M Tech in Software Engineering or B Tech Electrical and CSE with Minor AI & ML (Both from VIT Chennai) - Which one to choose for better career options?

Ans: Both the Integrated M.Tech in Software Engineering and B.Tech Electrical and CSE with Minor in AI & ML at VIT Chennai offer strong academic and placement prospects, but they serve different career goals. The Integrated M.Tech in Software Engineering is a five-year program with about 70% placement rate, focusing on deep software engineering skills and providing a direct pathway to advanced roles in the IT sector, but it limits flexibility if you wish to switch fields later. The B.Tech Electrical and CSE with Minor in AI & ML is a four-year program, nearly 90% of students are placed, and it offers broader exposure to both core engineering and software, with the added advantage of specialization in high-demand AI/ML domains. Both programs benefit from VIT Chennai’s strong placement ecosystem, with top recruiters like Microsoft, Amazon, and Qualcomm, and average placement rates above 80% in recent years. The B.Tech with CSE and AI/ML minor provides more flexibility, industry relevance, and better prospects for diverse roles in both software and technology sectors, making it the preferable choice for most students seeking strong career options in a rapidly evolving job market. All the BEST for the Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Question by Priya - Jun 13, 2025

Career

I got 1072 rank in jee mains paper 2 bplan which college can I get

Ans: Hello Priya
It is not possible for us to name a particular college here on this platform. However, there is a chance to get into a good college.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |3218 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jun 13, 2025

Question by B - Jun 13, 2025

Career

Dear Sir, My daughter got selected for M tech Software Engineering (5 year Integrated) in VIT-AP (Amaravati) and please inform the placement details.

Ans: Hello dear.
It would be better to visit the placement division in person or communicate directly with them, as they can provide you with authentic and up-to-date information.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Mayank Chandel |2479 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Jun 13, 2025

Asked by Anonymous - Jun 13, 2025

Career

At 3790 air in JEE mains which would be better IIIT Allahabad IT or MNIT Allhabad or MNC in NIT Warangal

Ans: NIT Warangal MNC – is as good as CSE
IIIT Allahabad IT
NIT Allahabad CSE

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