Hello Sir , I am 43 years of age with no liabilities . I have my own home and 3 land properties . I have liquidity of 2Cr, 30lacs in SCSS in my mother name quarterly payment out , 2 LIC policy (one in my name and another on my brother name), I have 3 ULIP smart privilege plan of 10 lacs each year paying, I have 5FD of 30 lakhs each year gets due which is of 1,2,3,4 and 5, I have a monthly expenditure of 1 Lakhs approx . What will be the best way save around 1 lacs above per month . Presently retire by 42 years . What will be the best way to grow the above much corpus and also your thoughts with way to invest?

Ans: You have a strong financial foundation. You own your home and three land properties, offering significant asset value. Your liquid assets total Rs. 2 crores, providing a substantial cash reserve. Additionally, you have Rs. 30 lakhs in the Senior Citizen Savings Scheme (SCSS) under your mother's name, which yields quarterly payments.

Your insurance portfolio includes two LIC policies, one under your name and another under your brother's. You also hold three ULIP smart privilege plans, each with an annual premium of Rs. 10 lakhs. Moreover, you have five fixed deposits (FDs) of Rs. 30 lakhs each, maturing annually over the next five years. Your monthly expenditure is Rs. 1 lakh, reflecting a comfortable lifestyle.

Your goal is to save an additional Rs. 1 lakh per month and grow your corpus while ensuring financial security for the future.

Assessing Current Investments
LIC Policies and ULIPs

While LIC policies provide insurance coverage, they may not offer optimal returns compared to other investment avenues. Similarly, ULIPs combine insurance and investment but often come with high charges and lower returns. Evaluating the performance and costs of these policies can help determine if they are worth retaining.

Fixed Deposits

Fixed deposits are secure but offer relatively low returns. With inflation and taxes, the real returns on FDs may be minimal. Therefore, exploring higher-yield investments is advisable.

Suggested Investment Strategies
Shift from Traditional to Growth-Oriented Investments

To achieve higher returns, consider moving from traditional investments like FDs to mutual funds. This will help you beat inflation and grow your wealth significantly over time.

Mutual Funds: A Better Alternative
Actively Managed Funds vs. Index Funds

Actively managed funds can offer higher returns than index funds, as professional fund managers make strategic decisions to outperform the market. Although index funds are cost-effective, they often deliver average market returns. In contrast, actively managed funds, despite higher fees, can potentially generate superior returns through expert management.

Benefits of Regular Funds
Advantages Over Direct Funds

Investing in regular funds through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential provides several benefits. You get expert guidance on fund selection and portfolio management. Direct funds might save on fees but require extensive knowledge and time to manage effectively. With regular funds, you also receive personalized advice tailored to your financial goals and risk appetite.

Portfolio Diversification
Balanced Asset Allocation

A well-diversified portfolio minimizes risk and maximizes returns. Here’s a suggested asset allocation:

Equity Mutual Funds: Allocate 60-70% of your portfolio to equity funds. Choose a mix of large-cap, mid-cap, and small-cap funds to balance risk and growth potential.

Debt Mutual Funds: Invest 20-30% in debt funds for stability and regular income. This can include short-term, medium-term, and long-term debt funds.

Gold: Allocate 5-10% to gold for diversification and as a hedge against inflation. You can invest through gold mutual funds or sovereign gold bonds.

Steps to Implement
1. Review and Rationalize Insurance Policies

Evaluate your LIC and ULIP policies. If they are not providing competitive returns, consider surrendering them and reinvesting the proceeds into high-growth mutual funds.

2. Redeploy Fixed Deposits

As each FD matures, reinvest the proceeds into a diversified portfolio of equity and debt mutual funds. This strategy will enhance your returns over time.

3. Utilize Liquid Funds

For short-term liquidity needs and an emergency fund, invest a portion of your Rs. 2 crore in liquid funds. They offer better returns than a savings account and are easily accessible.

4. Monthly Investment Plan

To save an additional Rs. 1 lakh per month, set up Systematic Investment Plans (SIPs) in mutual funds. This disciplined approach helps in rupee cost averaging and capitalizing on market volatility.

Enhancing Your Retirement Corpus
Maximizing Growth

To grow your corpus effectively, consider the following:

Equity Exposure: Increase your exposure to equity mutual funds for long-term growth. Given your age and financial position, a higher equity allocation can significantly enhance your retirement corpus.

Professional Guidance: Regularly consult with a Certified Financial Planner (CFP) to review and adjust your investment strategy based on market conditions and personal goals.

Tax Efficiency
Invest Tax-Efficiently

Invest in tax-saving instruments like Equity-Linked Savings Schemes (ELSS) under Section 80C. These funds not only provide tax benefits but also offer potential for high returns. Additionally, consider tax-efficient withdrawal strategies to minimize tax liabilities in retirement.

Financial Security
Insurance Coverage

Ensure you have adequate health and life insurance coverage. This protects your financial plan from unforeseen medical expenses and secures your family’s future in case of any eventuality.

Estate Planning
Ensuring Smooth Succession

Create a comprehensive estate plan, including a will and nomination for all your investments. This ensures a smooth transfer of assets to your heirs, minimizing legal complexities and disputes.

Regular Review and Adjustments
Stay Updated

Regularly review your investment portfolio and financial plan. Adjust your strategy based on changes in market conditions, personal circumstances, and financial goals. A proactive approach ensures you stay on track to achieve your financial objectives.


You have built a substantial asset base and a strong financial position. Your proactive approach to seeking financial advice is commendable. It shows your commitment to securing a prosperous future for yourself and your family.

Understanding your financial aspirations and challenges is essential. You have made significant progress, and with strategic adjustments, you can achieve your goals effectively.

Final Insights
You have a robust financial foundation with significant assets and liquidity. By shifting from traditional investments to high-growth mutual funds, you can enhance your returns and achieve your financial goals. Regularly review your portfolio with a Certified Financial Planner to ensure alignment with your objectives. Your dedication to financial planning is admirable, and with these strategies, you can secure a prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in