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Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2025

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

Asked by Anonymous - Jul 03, 2025Hindi

Hello Sir, I am 39 year old female. I have 30 lac in mutual funds which have current market value of 37 lac. I have 31 lac in pf, 5 lac in FD , 2 lakh in gold investment and 2 lakh kept as emergency fund. My monthly take home is 80k and expenses around 30k. Looking into current IT scenario and my company layoff policy I get scared will the savings help. I am married and dont have any kids and no plan for kids in future. There is currently no loan and have a 40 lakh property which gives 18k monthly rent. As was having only company mediclaim have taken a medical insurance policy of 15 lakh which is having 40k early premium. Please suggest.

Ans: ? Your Financial Snapshot at a Glance
– You are 39 years old with a strong financial foundation.
– Your mutual fund value is Rs. 37 lakh (originally Rs. 30 lakh).
– You have Rs. 31 lakh in PF, Rs. 5 lakh in fixed deposits.
– Rs. 2 lakh in gold and Rs. 2 lakh set aside as emergency fund.
– Monthly income is Rs. 80,000 with only Rs. 30,000 spent monthly.
– You own a property worth Rs. 40 lakh, earning Rs. 18,000 rent.
– You hold a health insurance policy of Rs. 15 lakh with Rs. 40,000 premium.

This is an impressive position, especially with no loans and low expenses.

? Income and Expense Analysis
– Your savings rate is very high, about 60% of income.
– Rental income adds another Rs. 18,000 per month.
– Total monthly surplus is about Rs. 68,000.
– This surplus is a powerful engine for wealth building.

You are living well below your means, which is very effective for long-term planning.

? Protection through Insurance
– You rightly recognised the importance of personal health insurance.
– Rs. 15 lakh coverage is suitable at your stage of life.
– Ensure the policy covers hospitalisation, day care, and critical illnesses.
– Do not rely only on corporate insurance.
– Also review if accidental insurance is needed separately.

This shows a proactive mindset toward risk coverage, which is commendable.

? Review of Your Existing Investments
– Mutual funds of Rs. 37 lakh show healthy long-term gains.
– This indicates sound fund selection and consistency.
– Your PF balance of Rs. 31 lakh ensures long-term retirement support.
– Fixed deposit of Rs. 5 lakh adds short-term liquidity.
– Gold and emergency funds show safety-first attitude.

Your asset mix is balanced across equity, fixed, and emergency instruments.

? Mutual Fund Strategy Evaluation
– You have built your mutual fund wealth smartly.
– Ensure your funds are diversified across categories.
– Prefer actively managed funds with good long-term track records.
– Do not shift to index funds, they lack downside protection in volatile times.
– Index funds also don’t offer fund manager insights or flexibility.

Actively managed funds can adapt better during crises and preserve capital.

? Direct vs Regular Mutual Fund Strategy
– If you invest through direct funds, reconsider the approach.
– Direct funds look cheaper, but offer no professional handholding.
– A Certified Financial Planner backed Mutual Fund Distributor helps deeply.
– They track market cycles, review your goals, and suggest timely shifts.
– Regular plans support disciplined guidance over the long run.

Avoid a do-it-yourself mode for large portfolios. It risks missteps in key stages.

? What to Do with Your Surplus Income
– Monthly surplus of Rs. 68,000 can be powerfully used.
– Continue your existing SIPs and increase them gradually.
– Start a step-up strategy where SIP increases 10% every year.
– Diversify across large cap, flexi cap, and midcap categories.
– Avoid thematic or sectoral funds unless guided by an expert.

Disciplined investing is more valuable than chasing high returns randomly.

? Creating a New Emergency Fund Plan
– Your current Rs. 2 lakh emergency fund is low.
– Target minimum 6 months of expenses plus rent loss.
– This means build it up to at least Rs. 3.5 lakh.
– Park this amount in a high-interest savings or liquid fund.

A stronger emergency buffer gives you peace if job loss occurs.

? Rental Income Utilisation
– Rs. 18,000 rental income should be used for wealth creation.
– Don’t mix it with monthly spending needs.
– Route this amount towards a separate investment stream.
– You may use it to increase equity SIPs or create a gold/FD ladder.

Rental income is semi-passive. Use it with a clear reinvestment purpose.

? Plan for Job Instability and Layoffs
– Keep updating your skillsets regularly.
– Have a 12-month cash flow backup via SIP stoppage and emergency use.
– Avoid new loans or liabilities in the near term.
– Focus on liquidity and control over expenses during uncertain times.

Your low lifestyle cost is already your best security.

? Preparing for Early Retirement
– You have the potential to retire early if planned well.
– Track your monthly expense pattern and inflate it to 50s and 60s.
– Based on Rs. 30,000 expenses, aim for a retirement corpus of Rs. 3.5 crore+.
– Your current PF, mutual funds, and rent can support this goal.
– Continue investing and keep your withdrawal rate below 3.5% post-retirement.

Plan your exit from employment carefully with enough corpus and peace of mind.

? Gold and FD Review
– Gold is just Rs. 2 lakh, which is fine for diversification.
– Don’t increase it further, as returns are volatile and not compounding.
– FD of Rs. 5 lakh is useful for short-term goals.
– Avoid putting long-term money into FDs, as post-tax return is low.

Keep gold symbolic and FDs goal-based, not growth-oriented.

? Tax Planning Opportunities
– Your EPF and insurance premium help you with Section 80C limit.
– Use SIPs in ELSS only if 80C is not yet utilised.
– You can optimise capital gains by reviewing your MF holding periods.
– Long-term equity gains above Rs. 1.25 lakh are taxed at 12.5%.
– Keep a tab on exit timings to lower tax impact.

A year-end capital gain review is a must with a Certified Financial Planner.

? No Need for New Policies
– Avoid any endowment, ULIP or combo plans.
– They give low returns, have long lock-in, and unclear costs.
– You are already investing far more effectively through mutual funds.
– Stay away from any insurance-cum-investment plans.

If you have any such legacy plans, evaluate and surrender with guidance.

? Estate Planning and Nomination
– Have updated nominations across all investments and insurance.
– Write a simple will covering your assets and rental property.
– If you want to gift or transfer later, do it via proper documents.
– Keep your spouse informed about your assets and plans.

Organised documentation gives long-term peace for you and your family.

? Stay Mentally Prepared for Career Shifts
– In IT, job shifts are real and can be sudden.
– Keep your resume, network, and skills updated.
– Build an alternate income stream, such as part-time freelancing.
– Never rely only on employer benefits or company security.

A self-reliant mindset ensures peace, even in tough corporate phases.

? Finally
– You have built a clean, stable financial base.
– No loans, low expenses, and good investments give great flexibility.
– Now focus on growing your corpus with discipline.
– Stick to equity mutual funds, increase SIPs, and avoid flashy products.
– Review goals every year with a Certified Financial Planner.
– Stay insured, stay liquid, and keep goals realistic.

You are already ahead of most people. Protect this progress smartly.

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

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