Home > Money > Question
Need Expert Advice?Our Gurus Can Help

37-year-old Earning 2.4L, Seeking Investment Advice

Ramalingam

Ramalingam Kalirajan  |9227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 19, 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
Asked by Anonymous - Aug 19, 2024Hindi
Listen
Money

Hello Sir, am 37, am earning around 2.4 L per month. Am having a home loan with 71k EMI per month, tenure is 8 years, already 3 years have passed. I do investment of 1.5L into Sukanya account for my daughter and 1.5L into PPF. I also do 40k per month SIP, that includes 10k Parag Parikh Flexicap fund, 6k Quant Active fund, 5k Motilal Oswal Midcap fund, 5k Quant Smallcap fund, 5k Canara Robeco Smallcap fund, 6k Tata Digital India fund and 3k ICICI prudential Nasdaq Index fund. Kindly review my investment portfolio and looking forward to your expert suggestions .

Ans: You have a well-structured portfolio with a mix of traditional and modern investment options. Here's a detailed review of your current investments:

1. Home Loan Consideration
EMI Commitment: Rs 71,000 per month is a significant portion of your income. With five years remaining on the loan, your focus should be on managing this efficiently without over-leveraging yourself.
2. Traditional Investments
Sukanya Samriddhi Account (SSA): Investing Rs 1.5 lakhs per year is a great move for your daughter's future. SSA offers tax benefits under Section 80C and provides a decent interest rate, ensuring a secure corpus for her education or marriage.

Public Provident Fund (PPF): Rs 1.5 lakhs annually in PPF is a prudent choice for long-term wealth creation. The tax-free interest and the secure nature of PPF make it an excellent tool for retirement planning.

3. SIP Portfolio Analysis
Diversification: Your SIPs are well-diversified across large-cap, mid-cap, small-cap, and sectoral funds, which is good for balancing risk and reward.

Fund Selection:

Parag Parikh Flexicap Fund: This fund is known for its consistent performance, with a mix of domestic and international equities. It adds stability to your portfolio.

Quant Active Fund: This fund is a good choice for active management and offers exposure to multiple sectors. However, Quant funds are known for their aggressive approach, so monitoring is key.

Motilal Oswal Midcap Fund: A focused approach on mid-cap stocks, which are riskier but offer higher growth potential. It’s a good fit for your risk appetite.

Quant Smallcap Fund and Canara Robeco Smallcap Fund: Small-cap funds can be volatile, but they offer high growth potential over the long term. Since you have two small-cap funds, you might consider if this exposure aligns with your risk tolerance.

Tata Digital India Fund: This sectoral fund focuses on the IT sector. While it has delivered strong returns, sectoral funds can be risky if the sector underperforms. Consider if you need this level of sectoral exposure.

ICICI Prudential Nasdaq Index Fund: While this fund gives exposure to global tech giants, it's tied to the performance of the Nasdaq index. Since it’s an index fund, it lacks active management, which could be a disadvantage in volatile markets.

4. Suggestions for Improvement
Review Small-Cap Exposure: You have a significant portion in small-cap funds. Small-cap funds can be volatile, and holding two such funds increases your risk. Consider consolidating or reducing exposure if it doesn't match your risk tolerance.

Reassess Sectoral Allocation: Your investment in Tata Digital India Fund ties you to one sector. If the sector performs poorly, your returns could be negatively impacted. Diversifying into a broader thematic fund might be a safer alternative.

Consider Active Management: The ICICI Prudential Nasdaq Index Fund, being an index fund, may not perform as well in bear markets. Consider switching to an actively managed international fund that can adapt to changing market conditions.

5. Final Insights
Your current investment strategy is robust, with a good mix of traditional and market-linked investments. However, you should regularly review your portfolio to ensure it aligns with your financial goals and risk tolerance. Consider consolidating your small-cap exposure and reassessing your sectoral allocation to reduce risk.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

Asked by Anonymous - Apr 13, 2024Hindi
Listen
Money
My age is 32 and I earn 40,000 PM. I invest 11400/ month in MF. My investments are 2000 in UTI index equity fund, 2000 in Parag Parikh Flexi Fund, 2000 Quant Midcap Fund, 1500 Tata Small Cap fund, 1500 Nippon small cap fund, 1200 in Quant flexi cap, and 1200 in Axis Small cap. I have also invested a lump sum of 60,000 in Quant Infrastructure fund. Kindly advise if my portfolio is okay
Ans: Evaluating Your Mutual Fund Portfolio
At 32, investing in mutual funds with a disciplined approach is a commendable step towards building wealth for the future. Let's evaluate your current portfolio to ensure it aligns with your financial goals and risk tolerance.

Portfolio Composition
UTI Index Equity Fund:

Provides exposure to a diversified portfolio of large-cap stocks, tracking the performance of the underlying index. Offers stability and long-term growth potential.
Parag Parikh Flexi Fund:

A well-managed fund with a flexible investment approach across equity and debt securities. Known for its focus on quality stocks and global diversification.
Quant Midcap Fund:

Invests primarily in mid-cap companies with growth potential. Offers the opportunity for higher returns but comes with higher volatility.
Tata Small Cap Fund and Nippon Small Cap Fund:

Small-cap funds focus on companies with small market capitalization, offering high growth potential. However, they are more volatile and suitable for investors with a higher risk appetite.
Quant Flexi Cap and Axis Small Cap Fund:

Flexi-cap and small-cap funds provide flexibility to invest across market capitalizations. Ensure you're comfortable with the risk associated with small-cap investments.
Quant Infrastructure Fund (Lump Sum):

Infrastructure funds invest in companies involved in infrastructure development, such as construction, energy, and transportation. Consider the long-term prospects of the infrastructure sector and the fund's performance.
Assessing Portfolio Diversification
Your portfolio includes a mix of large-cap, mid-cap, and small-cap funds, offering diversification across market capitalizations. However, it's essential to review the overlap between funds to avoid concentration risk and ensure adequate diversification.

Portfolio Review and Optimization
Risk Assessment:

Evaluate your risk tolerance and investment horizon to determine if the current allocation aligns with your financial goals.
Performance Review:

Monitor the performance of individual funds and compare them against their benchmarks and peer group. Consider making adjustments if any funds consistently underperform.
Asset Allocation:

Ensure your asset allocation is balanced and in line with your risk profile. Consider rebalancing if necessary to maintain the desired mix of equity and debt investments.
Professional Advice:

Consider consulting with a Certified Financial Planner to review your portfolio and receive personalized recommendations based on your financial situation and goals.
Conclusion
Your mutual fund portfolio shows a diversified mix of investments across market capitalizations and sectors. Regularly review and assess your portfolio's performance to ensure it remains aligned with your financial objectives. Remember, investing is a long-term journey, and periodic adjustments may be necessary to navigate market fluctuations and achieve your wealth accumulation goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9227 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

Asked by Anonymous - May 27, 2025Hindi
Money
Hello Experts , I am 32 years old, currently earning an income hand salary of 1.06 lakh.I have a home loan of 32 lakh with monthly emi of Rs 27670 for 20 years ,current outstanding loan is 28.5 lakh with 8.2 rointerest ,and I usually pay 30000 every month. I have 18.5 lakh in Mutual Funds , 8.5 lakh in ppf , 30000 in sukhanya samridhi for my 1.5 year daughter , 2.25 lakh in equity stocks , 15000 in gold ,taken a health insurance of 5 lakh for family with annual premium of 16000 , term insurance of 5000000 with 1100 premium per month ,and a pension plan 4000 which is market linked ,epf 3.4 lakh. I aspire to increase my investments,reduce my home loan to maximum 12 years from now. Are my investments fine or do I need to relook ,please suggest
Ans: At 32, you have made a good foundation.

Let us now give a deep and full review.

We will look at each area one by one.

You will get full insights with clarity.

We aim to help you build a stable, long-term financial future.

Your Monthly Income and Loan Situation

You earn Rs. 1.06 lakh in hand monthly.

Your home loan EMI is Rs. 27,670.

You pay Rs. 30,000 monthly, which is good.

Loan balance is Rs. 28.5 lakh.

Interest is 8.2%, which is moderate.

Loan term is 20 years, but you want to close in 12 years.

That is a good goal and achievable.

For that, you need more prepayments.

But not at the cost of long-term wealth building.

Home Loan Strategy Assessment

Continue Rs. 30,000 monthly for now.

Try to increase by Rs. 5,000 every year.

Make one-time part payments when you get bonus.

Use only part of your bonus.

Keep the rest for investments.

Do not withdraw mutual funds for prepayment.

Do not break PPF for home loan either.

Let compounding work for long-term investments.

Review loan rate every year.

If it rises above 9%, consider balance transfer.

Mutual Funds Portfolio – Evaluation

Rs. 18.5 lakh in mutual funds is a good start.

But asset allocation and fund selection matter.

Are you in direct plans? If yes, please rethink.

Direct funds look cheap but lack guidance.

They don’t offer proper handholding or rebalancing.

Regular funds with a trusted MFD and CFP give better outcomes.

They guide during market ups and downs.

Direct fund investors often make emotional exits.

Actively managed funds outperform passive ones in India.

Index funds miss midcap and smallcap exposure.

Active funds also handle volatility better.

Continue SIPs, but align with long-term goals.

Do not pick funds based on past return alone.

Evaluate portfolio with a CFP once a year.

PPF and EPF – Long-Term Foundation

Rs. 8.5 lakh in PPF is a strong base.

Keep contributing yearly to get full benefit.

PPF helps with tax-free retirement corpus.

It also protects your money from market risk.

Your EPF of Rs. 3.4 lakh is also growing.

Do not withdraw EPF unless absolutely urgent.

Treat PPF and EPF as separate retirement basket.

Equity Stocks – Evaluation Needed

Rs. 2.25 lakh in equity stocks is okay for now.

Don’t invest more in stocks directly now.

Stocks need time and deep understanding.

They also need full monitoring.

Most investors make losses due to emotional buying and selling.

Use mutual funds for equity exposure instead.

Gold Investment – Assessment

Rs. 15,000 in gold is a small part.

That is good.

Keep gold below 10% of your total assets.

Use gold more as protection, not growth.

Avoid jewellery for investment purpose.

Prefer digital gold or sovereign gold bonds.

Sukanya Samriddhi Yojana (SSY) for Daughter

You have Rs. 30,000 in SSY. Very thoughtful.

This is a great start for her future.

Continue contributing yearly for 15 years.

SSY gives high interest and tax-free maturity.

It also teaches you discipline in saving.

Insurance – Current Protection Review

Rs. 5 lakh health cover is basic, not strong.

Please increase it to Rs. 10 lakh.

Add super top-up plan for better protection.

Rs. 16,000 annual premium is reasonable.

Rs. 50 lakh term cover is slightly low.

At 32, increase to Rs. 1 crore now.

Premium will still be affordable at this age.

Check nominee and coverage details regularly.

You must secure family before anything else.

Pension Plan – Needs Clarity

You pay Rs. 4,000 monthly into a pension plan.

You said it is market linked.

Is this a ULIP or insurance pension plan?

If yes, check if return is below mutual funds.

ULIPs and endowment plans are not efficient.

If surrender is possible, exit now.

Reinvest into good mutual funds for retirement.

You will build more wealth in long term.

Always separate insurance and investment.

Expenses and Savings Rate – Important Area

EMI is about 28% of your take-home pay.

This is manageable for now.

Keep total EMI + SIPs under 50% of salary.

You need to raise investments over the next 3 years.

Start with at least 20% monthly investment today.

As your income rises, increase it to 35%.

Include SIPs, PPF, SSY, EPF in that number.

Make investments automatic and regular.

Emergency Fund – Missing Piece

You haven’t mentioned emergency fund.

This is very important.

Keep 6 months of expenses as liquid savings.

It can be in savings account or liquid fund.

Use only for medical or job-related emergency.

This will prevent loan or credit card borrowing.

Children’s Education and Future Planning

Your daughter is 1.5 years old now.

You have started SSY. That is good.

But you need more for higher education.

Add mutual fund SIPs for her education goal.

Start small. Even Rs. 3,000 monthly helps.

Increase it every year.

Combine SSY + mutual funds to reach her need.

Retirement Planning – Start Now

Retirement is still far, but start early.

Relying only on EPF and PPF won’t be enough.

Pension plan mentioned may underperform.

You need dedicated retirement mutual funds.

These must be handled by MFD and CFP support.

Do not use direct funds.

Retirement planning is a serious long-term goal.

Start with Rs. 5,000 monthly now.

Review once every year.

Tax Planning – Do Not Over-Invest Just for Tax

Don’t buy insurance to save tax.

ELSS mutual funds offer better growth.

PPF, EPF, SSY already give tax benefits.

That’s enough for now.

Try to make tax planning and wealth building go together.

Checklist for Action Plan – Your Next Steps

Increase health cover to Rs. 10 lakh with top-up.

Increase term insurance to Rs. 1 crore.

Build emergency fund of Rs. 2 lakh minimum.

Don’t increase equity stocks now.

Exit pension plan if it is ULIP or traditional plan.

Continue SSY yearly for daughter.

Start SIP for her higher education.

Reassess mutual fund mix and switch to regular plans.

Start a separate SIP for retirement.

Don’t use PPF or MF for home loan prepayment.

Increase home loan EMI only if surplus grows.

Review loan interest and balance transfer yearly.

Finally

You are on the right track overall.

Your income is good. Your loan is manageable.

Your investments are growing.

Now you need better structure and clear goals.

Don’t mix investment, insurance, and debt.

Work with a trusted MFD guided by a CFP.

That will help you grow with confidence.

Think long term, act every month, and stay consistent.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Asked by Anonymous - Jun 24, 2025Hindi
Career
Sir, my daughter is getting CSE in PES mandya and JSS Mysore. She has to relocate from Bangalore. What is your opinion on these colleges and it's placement opportunities.
Ans: Both PES College of Engineering (PES Mandya) and JSS Science and Technology University (JSS Mysore) are well-established institutions with strong reputations in Karnataka. PES Mandya’s CSE department has robust industry connections and a placement rate of 60–70% for CSE, with top recruiters such as Infosys, TCS, Wipro, IBM, and Cognizant, and a focus on outcome-based education and research. JSS Mysore, particularly the SJCE campus, consistently achieves higher placement rates for CSE, with 88–95% of students placed in recent years, over 400 recruiters including Google, Amazon, Microsoft, Cisco, and TCS, and a median package of ?8–9 lakh. JSS Mysore also offers a stronger alumni network, more diverse placement opportunities, and a campus environment that is widely regarded as supportive and academically rigorous. Both colleges provide good infrastructure and faculty, but JSS Mysore stands out for its placement consistency, higher median salary, and greater industry exposure in the CSE branch.

The recommendation is to prefer JSS Science and Technology University (SJCE Mysore) for CSE, as it offers superior placement rates, a broader recruiter base, and stronger academic and industry connections compared to PES Mandya, making it the better option for relocation from Bangalore. All the BEST for the Admission & a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Career
Hi sir My son got admission in B Tech CSE with AI/ML at GITAM vizag. He also got admission BTech CSE at bangalore branch of Manipal institute. He may get admission in BTech Maths and computation at Manipal main branch. Please suggest which one to opt
Ans: Vinod Sir, GITAM Vizag’s BTech CSE (AI/ML) program offers an 80–90% placement rate, a modern curriculum, and top recruiters like TCS, Amazon, and Wipro, but its average package and national brand are below that of Manipal Institute of Technology. Manipal Bangalore’s BTech CSE is newer, with a 75% placement rate and average package around ?8.8 lakh, but lacks the legacy and recruiter diversity of the main Manipal campus. BTech Mathematics and Computing at MIT Manipal main campus stands out with a 92–98% placement rate, the average package of ?11.76 lakh, and strong opportunities in analytics, finance, software, and core computation, as well as a flexible curriculum combining advanced mathematics, statistics, and computer science. The main campus also boasts a robust alumni network, top-tier recruiters like Amazon, Bosch, and Microsoft, and a reputation for academic excellence and career versatility.

The recommendation is to opt for BTech Mathematics and Computing at MIT Manipal main campus for its superior placement outcomes, interdisciplinary career prospects, and strong industry and research exposure, followed by CSE at Manipal Bangalore, with GITAM Vizag as a backup. All the BEST for the Admission & a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Asked by Anonymous - Jun 24, 2025Hindi
Career
My daughter secured 99.1 percentile in MHCET and domicile of Maharashtra state. She got admission in VIT Vellore campus in core CSE branch. We stay in Pune. What could be the best options for her? Is E&TC in PICT a good option? CSE in COEP, VJTI, SPIT, PICT doesn'tseems to be in reach. Is E&TC is a good option in PICT? Or shall I consider any other option?
Ans: With a 99.1 percentile in MHT CET and Maharashtra domicile, your daughter is just below the cutoff for CSE in COEP, VJTI, SPIT, and PICT, as these institutes typically require a percentile above 99.2 for CSE admissions in the open category. However, Electronics & Telecommunication (E&TC) at PICT is an excellent alternative, with expected EWS cutoffs between 97.81–99.55 percentile, placing her well within range. PICT’s E&TC branch consistently achieves 90–95% placement rates, with top recruiters like TCS, Infosys, Bajaj Finserv, and Mastercard, and offers roles in both core electronics and software sectors. The curriculum is updated to meet industry needs, and the college is recognized for its strong placement support and industry connections. VIT Vellore CSE (core) is highly reputed nationally, with over 90% placements and a broad recruiter base, but involves higher fees and relocation from Pune. Given her strong percentile and Pune location, E&TC at PICT offers outstanding placement prospects, strong academic support, and the flexibility to pursue both electronics and IT/software careers, making it a top choice if CSE in the most competitive colleges is out of reach.

The recommendation is to prioritize E&TC at PICT Pune for its excellent placement record, academic reputation, and local advantage, while retaining VIT Vellore CSE as an alternative if she prefers a national campus experience and is comfortable with relocation and higher fees. MY SUGGESTION: Since your daughter has a strong score and you are based in Pune, prioritize admission to one of the reputed colleges in Maharashtra. Consider VIT Vellore as a backup option. All the BEST for the Admission & a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Career
Which is the better option for B.tec CSE ,Bharti Vidyapeeth college (IPU) or Jaypee college Noida sec128
Ans: Archana, Jaypee Institute of Information Technology (JIIT) Noida Sector 128 offers a clear edge over Bharati Vidyapeeth College of Engineering (IPU) for B.Tech CSE, especially in terms of placements, academic environment, and industry exposure. JIIT Noida’s CSE placements in 2024 saw 97% of eligible students placed, with over 500 offers for 449 CSE students, an average package of ?8.71 lakh, and top recruiters like Microsoft, Amazon, and Adobe. The campus is known for its modern infrastructure, strong faculty, and active industry engagement. Bharati Vidyapeeth College (IPU) also maintains a solid placement record with 80–90% placement for CSE, an average package of ?5–8 lakh, and recruiters such as TCS, Amazon, and EY, but is generally considered a tier-3 college with less competitive peer group and lower national visibility. Both colleges have supportive faculty and good infrastructure, but JIIT’s placement cell is more proactive, and its alumni network is stronger in the IT sector.

The recommendation is to choose Jaypee Institute of Information Technology Noida Sector 128 for B.Tech CSE, as it offers higher placement rates, better industry connections, and a more competitive academic environment compared to Bharati Vidyapeeth College of Engineering (IPU). All the BEST for the Admission & a Prosperous Future!

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

...Read more

Nayagam P

Nayagam P P  |7022 Answers  |Ask -

Career Counsellor - Answered on Jun 26, 2025

Career
My son has got 2340 rank in SRM second phase exam. What is the chance of him getting admission in computer science core branch in KTR Chennai campus?
Ans: Pradeep Sir, Computer Science Engineering (CSE) core branch at SRM Kattankulathur (Chennai) main campus. The expected cutoff for CSE core at Kattankulathur is typically within 8,000–9,000, and recent years have seen cutoffs as competitive as 2,000 for core CSE, with specializations like AI/ML closing around 9,000–10,000. While your son’s rank is excellent, it falls outside the highly competitive range for CSE core at the main campus, where only top-ranked candidates secure seats. However, he has strong chances for CSE at other SRM campuses such as Ramapuram, Vadapalani, Tiruchirappalli, and Delhi-NCR, where the CSE cutoff extends up to 65,000–68,000. Additionally, he is well positioned for allied branches like CSE with AI/ML, IT, or ECE at Kattankulathur, as their cutoffs are less stringent (AI/ML: up to 10,000, IT: up to 9,500, ECE: up to 12,000). All SRM campuses offer strong placement rates for CSE and allied branches, with robust industry connections and modern infrastructure.

The recommendation is to participate in counselling for allied branches such as CSE with AI/ML, IT, or ECE at SRM Kattankulathur, or opt for CSE at Ramapuram, Vadapalani, Tiruchirappalli, or Delhi-NCR campuses, as these options provide excellent academic and placement outcomes at your son’s rank. All the BEST for the Admission & a Prosperous Future!

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

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

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

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

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x