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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 09, 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 for 10 years and dont have any kids. 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: You have managed your finances with care. That deserves appreciation.
Let’s now look at your financials from all angles.

We will build a strong safety net and growth path together.

Current Financial Snapshot

You are 39. You earn Rs.80,000 monthly.
Expenses are Rs.30,000 monthly.
So you have Rs.50,000 monthly surplus. That’s very healthy.

Your asset mix includes:

– Rs.37 lakh in mutual funds
– Rs.31 lakh in Provident Fund
– Rs.5 lakh in fixed deposit
– Rs.2 lakh in gold
– Rs.2 lakh emergency fund
– Rs.40 lakh property generating Rs.18,000 monthly rent
– Rs.15 lakh health cover (private) plus company mediclaim

You have no liabilities. That’s excellent.

You’ve built a stable financial base. But there’s room to improve risk cover and growth potential.

Job Security Concerns Are Valid

IT sector is going through changes.
Layoffs are happening across many levels.
It is wise to be prepared.
Let’s build a solid plan if job loss happens suddenly.

You must ensure:

– Emergency cash support for at least 12 months
– Income from investments to reduce pressure
– Mental peace while job hunting

This plan should run without breaking long-term investments.

Build Emergency Fund First

Your emergency fund is only Rs.2 lakh now.
That covers just 2 months of expenses.

Aim to increase it to Rs.6–9 lakh.
It should cover 12 months of expenses.
You can build this by saving from monthly surplus.
Keep it in liquid mutual funds or sweep-in savings.
It should be easy to access but not tempt you to spend.

Your Mutual Fund Holdings

You have Rs.30 lakh invested. Now it’s grown to Rs.37 lakh.
This is a good sign. You are staying invested.
Let us now protect this growth and fine-tune.

Key action steps:

– Review each fund with a Certified Financial Planner
– Remove any underperforming or risky funds
– Ensure your mix of large-cap, mid-cap, hybrid is proper
– Keep investing through SIP regularly
– Shift to lower-risk categories if near any short-term goal

Also remember:

– Don’t use direct funds.
– Regular funds via an MFD with CFP support give personalised help.
– Direct plans lack service, guidance, and exit timing support.
– Regular plans give behavioural coaching and tax advice too.

Why You Should Avoid Index Funds

Index funds are passive. They just copy the market.
They can’t react to market fall. No downside protection.
During volatility, actively managed funds protect capital better.
Good fund managers make better calls based on market shifts.
You deserve active decision-making, not just following an index.
So avoid index funds and focus on quality active ones.

Don’t Touch Your PF for Investments

Your EPF is Rs.31 lakh. It gives you stable interest.
It is also tax-free on maturity.
It is your retirement backbone.

Please don’t withdraw or use this corpus early.
Let it grow safely for your future.

Fixed Deposit Review

You have Rs.5 lakh in FD.
FD is safe but gives low returns.
Interest is also fully taxable.

Suggestion:

– Keep part of FD for safety.
– Move rest to debt mutual funds with better tax efficiency.
– This shift improves return without increasing risk too much.

Gold Investment is Low and That’s Fine

Gold is only Rs.2 lakh.
This is fine. No need to increase.
Gold should not be more than 5–10% of portfolio.

If you want, invest in gold via SIP in gold savings fund.
Avoid physical gold. It gives no interest and has storage risk.

Rental Income Can Be Used Better

You get Rs.18,000 monthly as rent.
This can be invested back.
Or used to build your emergency fund faster.

Don’t spend this rent casually.
Use it like your backup income source.

Once your emergency fund is ready, shift rent to SIPs in mutual funds.
This builds wealth quietly over time.

Health Insurance Step Is Very Wise

You have Rs.15 lakh cover privately.
Company mediclaim is also there.
That’s a good move.

Rs.40,000 annual premium is worth it.
Health costs are rising fast.
Keep renewing the policy every year.

Also check:

– Is spouse included? If not, consider adding.
– Does policy have room rent limit?
– Any co-pay clause?
– Claim settlement record of insurer?

Having a personal health cover protects you during job change.
It also helps post-retirement when you lose company cover.

You Are Debt-Free. Stay That Way

You have zero loans. That’s wonderful.
Try to maintain this status.

Avoid buying things on EMI unless it’s very essential.

Debt-free life gives more peace and freedom.

What to Do With Surplus of Rs.50,000 Monthly

This is your biggest strength now.
Don’t leave it in a savings account.
Put it to work smartly.

Suggestion:

– Rs.10,000 to emergency fund till it reaches Rs.6–9 lakh
– Rs.30,000 into SIP in actively managed mutual funds
– Rs.10,000 into short-term debt funds or hybrid funds

Choose SIPs based on goals and horizon.
Don’t invest randomly. Use guidance of a CFP.

You can also use MFD platform to set up SIPs, STPs, and track all.

Future Planning – Child, Retirement, Life

Right now you are married without kids.
You may or may not plan for children.

Either way, plan for:

– Retirement income
– Medical expenses post 60
– Lifestyle maintenance after work stops

Start building a retirement corpus now.
Use hybrid and balanced mutual funds.
Shift to more debt as you grow older.

If you plan to adopt or have children:

– You will need education and child planning investments
– Consider life insurance (term plan) to cover spouse and child

If no kids planned:

– Still plan for two-retirement income
– Protect spouse with investments and health cover

Should You Buy More Property?

Your exposure to real estate is already enough.
Rs.40 lakh property is giving you rent.
Please don’t increase it further.

Real estate is not liquid.
It is also taxed heavily when sold.
You need multiple asset classes, not only property.

Stay focused on mutual funds for future growth.
They are transparent, flexible, and offer better control.

Don’t Panic About Job Loss

You already took many right steps.
Now just add a few more layers.

If job goes:

– You will have 1 year of emergency cash
– Rent and SIP investments continue
– No loan burden to worry
– Medical cover will protect health costs

These things give peace of mind.
That’s your goal now.

What You Should Do Over Next 12 Months

– Increase emergency fund to Rs.6–9 lakh
– Clear underperforming mutual funds if any
– Begin or increase SIP in active mutual funds
– Use regular plans only (no direct funds)
– Review health policy once every year
– Plan for retirement and spouse income
– Don’t add real estate or gold
– Stay debt-free always
– Use surplus wisely
– Keep one CFP as financial guide
– Review full plan once a year with CFP

Finally

You are already financially stable.
You have no loans. You have rent income.
You saved and invested carefully.

Now it’s time to balance, protect, and grow.
Prepare for job uncertainty with calm mind.
Use your surplus to build your future.
Work with a Certified Financial Planner to stay on path.

Diversify your investments smartly.
Focus on discipline, not returns.
Your peace of mind will be your real wealth.

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

Asked on - Jul 10, 2025 | Answered on Jul 11, 2025

Thanks Sir for the proper detailed analysis and suggestion.

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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