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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 21, 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

Question by Vivek on Jul 20, 2025Hindi

Hello sir I am 33 years and my monthly income is 1.5 lakhs per month having emi of 50k per month of personal loan. giving wife 10k per month for saving..rent 6k and house expenses is 10k started sip of 10k 4 month ago in motilal oswal mid cap and going to continue with 20 years..in two months i will take 1cr term plan of bajaj alliance till 85years risk cover and premium of 60k yearly for 10 years..i have twins baby boy his age is 1 year after 2-3 years I will start sending my kids to cricket coaching for carrier in cricket please guide me additional what can I do..after 10 years I will be needing 1.5cr

Ans: You are just 33 years old with a healthy monthly income of Rs 1.5 lakh. You are already doing some good things. You’ve started a SIP. You have taken steps towards life insurance. You are thinking early about your children’s future.

Let us now do a complete 360-degree analysis. I will guide you on what to do additionally. Also, I will help you plan well for your future goals.

? Understanding Your Current Financial Snapshot

– Monthly income is Rs 1.5 lakh.
– Personal loan EMI is Rs 50,000.
– You give Rs 10,000 monthly to your wife for savings.
– House rent is Rs 6,000.
– Household expenses are Rs 10,000.
– SIP of Rs 10,000 has started.
– Twins are 1 year old now.
– You are planning a term policy of Rs 1 crore soon.
– You need Rs 1.5 crore in 10 years for future goals.

Your income-to-expense ratio is manageable. But EMI burden is slightly high now.

? Monthly Cash Flow Position

– Total monthly outflow = EMI Rs 50,000 + Rent Rs 6,000 + Expenses Rs 10,000 + SIP Rs 10,000 + Wife Rs 10,000.
– Total = Rs 86,000 per month.
– Balance left = Rs 64,000.

So, you have Rs 60,000+ left monthly. This is a good cash surplus.

But remember, personal loan EMI is temporary. Once paid off, you will save more.

Till then, do not increase expenses unnecessarily.

? Evaluation of Your Personal Loan EMI

– EMI of Rs 50,000 is high for your income.
– If it’s for 2-3 more years, no problem.
– Try not to take another loan during this time.
– Avoid credit card dues or consumer loans.
– After this EMI ends, increase investments.

Also, if possible, try prepaying a part of this loan every year. Even 1 or 2 EMIs paid early helps reduce stress.

? SIP Investment and Asset Allocation

– You are doing SIP of Rs 10,000 in midcap fund.
– That’s a good start but risky if done alone.
– Midcaps can be volatile in short-term.
– Better to add one large-cap or flexi-cap fund too.
– Balanced allocation is safer.
– Invest through a regular plan with MFD and CFP support.
– Direct funds may save cost but lack professional guidance.
– Regular funds come with MFD’s review and support.
– Stay with SIP for 20 years. But add more funds gradually.

Later, increase SIP by Rs 5,000 every 6-8 months as EMI burden goes down.

? About Index Funds and Why You Should Avoid

– Index funds just follow market indices.
– They do not try to beat market.
– They have no active fund manager.
– If markets fall, they also fall fully.
– They don’t protect downside.
– No risk management is done in index funds.
– Actively managed mutual funds are better.
– A fund manager works hard to protect and grow your money.

For your long goals like kids and retirement, active funds offer better flexibility and control.

? Your Upcoming Term Insurance Plan

– You plan to take Rs 1 crore term cover.
– Policy duration is till age 85.
– That’s good coverage for a start.
– Rs 60,000 premium yearly for 10 years seems a limited pay term plan.
– This is fine if this is a pure term policy.
– If it’s investment-cum-insurance or ULIP, then avoid it.
– If this is a combo plan, it is expensive.
– Term insurance should be pure risk cover.
– No savings. No maturity.

Please recheck the product structure. Only go ahead if it’s pure term cover.

? Emergency Fund and Insurance Planning

– Keep minimum 6 months of expenses in bank or liquid fund.
– That’s Rs 1 lakh to Rs 1.5 lakh.
– This is emergency cushion. Do not touch it unless needed.
– Also take health insurance for yourself and family.
– Don’t depend only on company policy.
– For twins, buy separate family floater health cover.

Medical costs are rising. Early health cover avoids future rejections and limits.

? Planning for Rs 1.5 Crore in 10 Years

– You said you need Rs 1.5 crore in 10 years.
– Not clear if it’s for children’s career or other purpose.
– Anyway, this is a big goal.
– To build this, you need to invest at least Rs 60,000 per month.
– You have monthly surplus. Use that slowly.

Next steps:
– After loan ends, move EMI amount fully into SIP.
– Add balanced mutual funds or flexi-cap funds.
– Also invest in a few child-focused mutual fund schemes.
– Track your fund performance yearly with MFD + CFP help.

Avoid real estate. It locks your money and gives low returns.

? Planning for Children’s Cricket Career

– You wish to put twins into cricket coaching.
– Start planning for this after 2 years.
– Coaching cost can be high.
– It includes academy fees, travel, equipment, diet and match fees.
– Make a separate child goal investment for this.
– Estimate total cost after 2-3 years.
– Start SIPs for that goal separately.

Also, be open to their career interest. Sports is a passion-driven field. Encourage but support academically too.

? Setting Up Investments For Children

– Twins are 1 year old.
– You have long time for college, marriage, career.
– Start one mutual fund each in their name.
– Use children’s benefit funds or balanced hybrid funds.
– These funds adjust between equity and debt smartly.
– Keep investing for 15-20 years without stopping.

Also, assign nominations. And review fund growth every year.

? Wife’s Financial Involvement

– You give Rs 10,000 monthly to your wife.
– Make sure this is invested wisely.
– Don’t let it sit idle in bank account.
– Open mutual fund folio in her name.
– Invest in regular plans with CFP + MFD guidance.

Her involvement in financial planning is very important. Let her learn and decide together.

? Long-Term Retirement and Wealth Creation Plan

– You have 27 years till age 60.
– That’s a great time frame.
– After loan ends, raise SIP to Rs 40,000 to Rs 50,000.
– Split across large-cap, flexi-cap, balanced, hybrid and multi-cap funds.
– Diversify but don’t overdo.
– Use a mix of growth and stability in mutual funds.

Don’t try to trade stocks or time markets. Stick to mutual fund route for better success.

? Things to Avoid Financially

– Don’t buy ULIP, endowment, or combo insurance plans.
– Don’t depend on direct stocks unless you are an expert.
– Don’t chase high-return schemes or Ponzi apps.
– Don’t buy land or plots thinking it will double soon.
– Don’t use credit cards for EMI purchases.

Stick to simple and transparent products. Wealth is created by habits, not tricks.

? Tax Planning Suggestions

– Use full 80C limit – PPF + ELSS + Life insurance.
– Use ELSS mutual funds through regular plan route.
– Avoid traditional LIC policies unless already bought.
– Use NPS if your employer supports it.

Track capital gains if you redeem mutual funds.

LTCG above Rs 1.25 lakh is taxed at 12.5%.

STCG is taxed at 20%.

Debt fund gains are taxed as per income slab.

Take tax filing help yearly to stay clean and safe.

? Increasing Investments Every Year

– Increase SIP by 10% every year.
– If you earn more, save more.
– Don’t raise lifestyle too fast.
– Review your plan every year with a CFP.

A disciplined plan for 20+ years gives financial freedom.

? Finally

– You are on the right track.
– Your earnings are good. Your family is young.
– Loan is the only short-term burden. It will end soon.
– After that, you must shift fully into investing.
– Keep increasing SIP. Don’t stop for market fear.
– Make sure your term plan is pure cover only.
– Don’t buy real estate or fancy policies.
– Take health cover for family immediately.
– Start planning kids’ sport career slowly. Be supportive.

Stay simple. Stay focused. Stay committed.

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

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