Hello My age is 46, My Salary is 120000 cash in hand and below are my expenses per month. As of now I don't have any investment can you suggest some plan as per my income and expenditure. House rent =22000, school fee 11000, EMI 24000.

Ans: AS per my understanding you can have the following funds
Mid cap - 20%
Small cap - 20%
Large and mid cap - 15%
Consumption fund - 10%
Multi cap - 10%
SBI children's fund investment plan - 10%
Short term fund - 10%
Term and medical insurance - 5% - Since you have kids and a loan.

Please note that these suggestions are based on your stated goals and the information you provided. It is always a good idea to consult with a financial advisor in person to better understand your risk tolerance, time horizon, and specific financial goals.

Ans: Hi Viditha, Can you please help me to understand what will be your period of investment and what is the goal behind this investment?

Ans: Ashish, you've built a solid foundation with your investments and your wife's entrepreneurial spirit. It's admirable how you've planned ahead, especially with your son's education and your retirement in mind. Now, as you transition into this new phase of life, it's time to ensure your financial security. Have you considered diversifying your investments to spread the risk? And with your son's CA finals approaching, perhaps setting aside some funds for his future endeavors could provide peace of mind. Remember, life is a journey, and financial planning is just one part of it. Cherish the moments with your loved ones and embrace the changes that come your way. A Certified Financial Planner can help navigate this journey with expertise and care. Stay focused, stay resilient, and may your future be as fulfilling as your past achievements.

Ans: It's great to see your proactive approach towards financial planning, especially considering your children's education and marriage expenses, as well as your goal of buying a house. Here's a tailored investment plan to help you achieve your objectives:

Education Fund for Children:
Open separate education funds or investment accounts for each child to save specifically for their education expenses.
Consider investing in Equity Mutual Funds or Equity Linked Saving Schemes (ELSS) for long-term growth potential, given your investment horizon.
Start a systematic investment plan (SIP) in diversified equity funds, aiming to accumulate sufficient funds by the time your children reach college age.
Marriage Fund for Children:
Similarly, create dedicated investment accounts for your children's marriage expenses to ensure you have adequate funds when needed.
Explore a mix of equity and debt investments based on your risk tolerance and time horizon.
Consider fixed-income instruments like Public Provident Fund (PPF), Fixed Deposits (FDs), or Debt Mutual Funds for stability and capital preservation.
House Purchase Fund:
Since you plan to buy a house in four years, focus on short to medium-term investment options to accumulate the required down payment.
Consider investing in Debt Mutual Funds or Fixed Maturity Plans (FMPs) for capital protection and relatively higher returns compared to traditional savings accounts.
Evaluate your risk appetite and liquidity needs when selecting investment vehicles for your house purchase fund.
Regular Review and Adjustment:
Periodically review your investment portfolio to ensure it remains aligned with your financial goals, risk tolerance, and time horizon.
Adjust your investment strategy as needed, considering changes in market conditions, personal circumstances, and goal priorities.
Emergency Fund:
Maintain a separate emergency fund equivalent to at least six months' worth of living expenses to cover unforeseen financial challenges or expenses.
Keep this fund in a liquid and easily accessible account such as a savings account or liquid mutual fund.
Consult with Financial Advisor:
Consider consulting with a Certified Financial Planner or investment advisor to tailor an investment plan that suits your specific goals, risk profile, and financial situation.
A professional advisor can provide personalized guidance and help you navigate the complexities of investment planning, ensuring you make informed decisions.
By implementing a structured investment plan tailored to your goals and financial circumstances, you can work towards securing your children's future education and marriage expenses while also saving for your own house purchase. Stay disciplined in your savings and investment approach, and regularly monitor your progress towards achieving these important milestones

Ans: You are 36 years old, married, and have one child. Your monthly income is Rs. 50,000, and your monthly expenses are Rs. 35,000. You have Rs. 6.5 lakhs in investments. You aim to plan for your retirement and your child's education.

Assessing Your Current Investments
Monthly Income: Rs. 50,000
Monthly Expenses: Rs. 35,000
Current Investments: Rs. 6.5 lakhs
Goals: Retirement planning and child's education
Recommended Investment Strategy
Emergency Fund
Maintain Liquidity: Keep at least 6 months of expenses in a liquid fund.
Target Amount: Rs. 2.1 lakhs in a savings account or liquid mutual fund.
Systematic Investment Plan (SIP)
Start SIP: Invest in diversified equity mutual funds.
Monthly Contribution: Allocate Rs. 10,000 per month for SIPs.
Benefits of SIP: Rupee cost averaging and disciplined investing.
Children's Education Fund
Start Early: Invest systematically for your child’s higher education.
Education SIP: Allocate Rs. 5,000 per month for a dedicated education fund.
Growth Potential: Choose equity-oriented funds for higher returns.
Retirement Planning
Long-Term SIP: Allocate Rs. 5,000 per month for retirement corpus.
Diversified Portfolio: Invest in a mix of equity and debt funds.
Regular Increase: Increase SIP amount by 5-10% annually to keep pace with inflation.
Health and Life Insurance
Health Insurance: Ensure you have adequate health coverage for your family.
Life Insurance: Secure a term plan to cover your family's financial needs in your absence.
Premium Allocation: Budget Rs. 2,000 monthly for premiums if needed.
Portfolio Diversification
Actively Managed Funds
Avoid Index Funds: Actively managed funds offer better returns and flexibility.
Professional Management: Funds managed by experienced professionals can outperform the market.
Benefits of Regular Funds Through CFP
Expert Guidance: Access to tailored investment strategies.
Continuous Monitoring: Regular assessment and adjustment of your portfolio.
Reviewing and Adjusting Your Plan
Quarterly Reviews
Performance Tracking: Monitor the performance of your investments quarterly.
Adjustments: Make necessary changes to stay on track with your goals.
Annual Rebalancing
Portfolio Rebalancing: Adjust the allocation between equity and debt to maintain the desired risk level.
Goal Alignment: Ensure your investments align with your financial goals.
Final Insights
To secure your pension and fund your child's education:

Maintain an Emergency Fund: Keep liquidity for unforeseen expenses.
Invest Regularly in SIPs: Allocate Rs. 20,000 monthly for SIPs in diversified funds.
Ensure Insurance Coverage: Adequate health and life insurance for your family.
Review and Adjust: Regularly monitor and rebalance your portfolio.
By following this strategy, you can achieve your financial goals systematically.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in