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

Ramalingam Kalirajan  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 07, 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 - Jun 03, 2024Hindi
Money

Hello Gurus.... i am 49 years old working IT professional....my current monthly income is 1.75L with 1 current home loan. In next 10 years i want to invest so that i have almost 1.5cr when i turn 60. Please advice investments.

Ans: At 49 years old, you have a solid 10-year window to build a corpus of Rs 1.5 crore. With a monthly income of Rs 1.75 lakh and a home loan, you have a substantial base to plan your investments effectively. Let's delve into a comprehensive plan to achieve your financial goal.

Understanding Your Current Financial Situation

Income and Expenses:

Your monthly income is Rs 1.75 lakh.
Calculate your monthly expenses, including your home loan EMI.
Savings Potential:

Determine your current savings rate.
Aim to save at least 30-40% of your income.
Evaluating Your Home Loan

Home Loan Impact:

Assess the interest rate and tenure of your home loan.
Consider prepaying the loan to reduce interest burden if possible.
Balancing Loan and Investments:

Ensure your loan EMIs do not hinder your ability to invest.
Creating a Diversified Investment Plan

Systematic Investment Plan (SIP):

Start with mutual funds through SIPs for disciplined investing.
Allocate a significant portion to equity mutual funds for higher returns.
Debt Funds and Fixed Income:

Invest in debt funds for stability and lower risk.
Consider a mix of short-term and long-term debt funds.
Public Provident Fund (PPF):

PPF offers tax-free returns and is a safe investment.
Invest the maximum permissible amount annually.
Equity Mutual Funds:

Focus on actively managed equity mutual funds for potential high returns.
Diversify across large-cap, mid-cap, and small-cap funds.
Calculating Monthly Investment Required

Future Value Calculation:

Using a financial calculator, determine the monthly SIP needed to reach Rs 1.5 crore.
Assume an average annual return of 12%.
Monthly SIP Amount:

To accumulate Rs 1.5 crore in 10 years, invest approximately Rs 65,000 per month.
Tax-Efficient Investments

Tax-Saving Instruments:

Maximize investments in ELSS for tax benefits under Section 80C.
Utilize the Rs 1.5 lakh limit for tax deductions.
Health Insurance:

Invest in health insurance for additional tax benefits under Section 80D.
Secure your family’s health and save on taxes.
Reviewing Insurance Policies

Term Insurance:

Ensure you have adequate term insurance coverage.
Term plans offer high coverage at low premiums.
Evaluating Existing Policies:

Review any existing LIC, ULIP, or endowment policies.
Consider surrendering low-yield policies and reinvesting in higher-return options.
Emergency Fund and Contingency Planning

Emergency Fund:

Maintain an emergency fund equivalent to 6 months of expenses.
This ensures liquidity without disturbing long-term investments.
Contingency Planning:

Plan for unforeseen events like job loss or medical emergencies.
Keep a portion of your investments easily accessible.
Regular Portfolio Review and Rebalancing

Periodic Review:

Review your investment portfolio every six months.
Adjust allocations based on market performance and financial goals.
Rebalancing Portfolio:

Rebalance your portfolio to maintain the desired asset allocation.
Sell over-performing assets and reinvest in under-performing ones.
Long-Term Investment Horizon

Power of Compounding:

Start investing immediately to leverage compounding.
Even small amounts grow significantly over time.
Staying Invested:

Avoid withdrawing investments prematurely.
Stay invested through market fluctuations for long-term growth.
Financial Discipline and Consistency

Automated Investments:

Set up automated transfers to your investment accounts.
Ensure consistency in your savings and investments.
Avoiding Unnecessary Expenditures:

Practice financial discipline by avoiding impulsive spending.
Prioritize saving and investing over luxury expenses.
Exploring Additional Income Streams

Part-Time Work or Freelancing:

Explore opportunities for additional income.
Use extra earnings to boost your investments.
Passive Income:

Invest in assets that generate passive income.
This could include dividends from stocks or interest from bonds.
Educating Yourself on Financial Planning

Continuous Learning:

Stay updated with financial news and market trends.
Read books, attend webinars, and follow financial blogs.
Consulting a Certified Financial Planner (CFP):

Seek professional advice for personalized financial strategies.
A CFP can provide tailored plans and help optimize your investments.
Final Insights

Building a corpus of Rs 1.5 crore in 10 years requires disciplined planning and strategic investments. Start by understanding your current financial situation, balancing your home loan with investments, and creating a diversified portfolio. Prioritize tax-efficient investments and ensure adequate insurance coverage. Maintain an emergency fund, regularly review your portfolio, and stay consistent with your investments. Consider additional income streams and continuously educate yourself on financial planning. Consulting a Certified Financial Planner can provide personalized advice and help you achieve your financial goals. With dedication and smart strategies, you can secure a prosperous future.

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  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 20, 2024Hindi
Listen
Money
I plan to invest 50,000 rs per month. I am 31 years old, for next 10 years I want to invest this amount such that it matches inflation when I turn 41. And generates income suitable to sustain my primary needs like food clothing etc.
Ans: Crafting a Long-Term Investment Strategy
Planning for your financial future is a wise decision at any age. Let's evaluate your investment goals and design a strategy that aligns with your needs.

Understanding Your Financial Goals
Genuine Compliments: It's inspiring to see your proactive approach towards securing your financial future at such a young age.

Empathy and Understanding: I understand that ensuring your investments keep pace with inflation and provide for your essential needs is paramount for your peace of mind.

Assessing Investment Options
Regular Funds through Certified Financial Planners: Investing through Certified Financial Planners (CFP) ensures personalized guidance and a tailored approach to your financial goals.

Disadvantages of Direct Funds: Direct funds require you to make investment decisions on your own, which might not always align with your financial objectives.

Benefits of Regular Funds Investing through MFD with CFP Credential: By investing through Mutual Fund Distributors (MFD) with CFP credentials, you gain access to expert advice and ongoing portfolio management, enhancing your chances of meeting your long-term goals.

Building a Balanced Portfolio
Equity Investments: Allocating a portion of your investments to equities can provide growth potential over the long term, albeit with higher volatility.

Fixed Income Instruments: Diversifying into fixed income instruments like bonds or debt funds can provide stability and income generation.

Asset Allocation: Balancing your portfolio between equity and fixed income based on your risk tolerance and time horizon is crucial for achieving your objectives.

Conclusion
By crafting a well-diversified investment strategy tailored to your needs and working with a Certified Financial Planner, you can navigate the financial markets effectively and work towards a financially secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Vivek

Vivek Lala  | Answer  |Ask -

Tax, MF Expert - Answered on Jun 16, 2024

Asked by Anonymous - Jun 13, 2024Hindi
Listen
Ramalingam

Ramalingam Kalirajan  |9777 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 14, 2024

Asked by Anonymous - Oct 14, 2024Hindi
Money
My salary 2.4 lac per month. I am 42 my wife and two son comprising of my family. One son is in 5th standard and other yet to start education. I have 2 house emis of 1.6 lacs of which one generates rent of 40k per month. Have around 50 lacs in investment comprising of 20lac in ppf and rest in stocks and sips and mfs. Only have company health insurance and no term insurance. Schooling cost is 1.2 lacs per annum. Rest expenses includes holiday every 6 months and daily needs. Please help me sort out investment to ensure I can generate enough to retire in next 10 years?
Ans: You have a solid foundation, and it’s commendable that you are managing two home loans while balancing various investments. Your monthly salary of Rs 2.4 lakhs and an EMI burden of Rs 1.6 lakhs shows you are carrying significant financial responsibility. However, generating Rs 40,000 from rent is helping reduce the impact of your EMIs.

Key highlights:

Monthly salary: Rs 2.4 lakhs
Two house EMIs: Rs 1.6 lakhs
Rent: Rs 40,000 per month
Investment portfolio: Rs 50 lakhs (Rs 20 lakhs in PPF, rest in stocks, SIPs, and MFs)
Annual schooling cost: Rs 1.2 lakhs
Other expenses: Holiday every 6 months, daily needs
No term insurance
Company health insurance only
While you have done well to invest Rs 50 lakhs, the lack of term insurance and the heavy EMI burden may be areas for improvement. Your goal of retiring in 10 years is achievable, but some adjustments will be necessary to optimize your portfolio and secure a comfortable future.

Investment Strategy Review
Let’s break down your current investments to better align them with your retirement goal in the next 10 years.

PPF (Public Provident Fund) - Rs 20 Lakhs
The PPF is a safe, long-term investment with tax benefits, but its returns are relatively modest. Over the next 10 years, this will continue to grow at a steady pace.

Action Plan:

Keep contributing to your PPF but avoid putting additional large sums.
PPF should be treated as part of your safe, low-risk portfolio.
Stocks, SIPs, and Mutual Funds (Rest of Rs 30 Lakhs)
Your exposure to equities through stocks and mutual funds will help you generate growth, but it needs diversification and regular review. SIPs in actively managed funds are ideal for long-term goals like retirement.

Action Plan:

Actively managed mutual funds: Ensure that the mutual funds you are invested in are diversified across sectors and are actively managed.
Avoid direct funds: Regular funds provide better tracking and advice from an MFD with CFP credentials, which is crucial for your long-term planning.
Review your stock portfolio: Individual stocks carry more risk than mutual funds. It is wise to regularly assess performance and sell off underperforming stocks.
Balance with debt funds: Include some debt funds for stability, especially as you approach your retirement goal.
Rental Income from Property
Your rental income of Rs 40,000 per month is a significant contributor to offset your EMIs. While real estate is not recommended as a new investment option, your existing property generating income can support your cash flow needs.

Action Plan:

Rent reassessment: Ensure you are getting market rent or consider raising it over time to adjust for inflation.
No additional real estate investments: Avoid tying more capital into real estate. Focus on growing your financial portfolio instead.
Critical Areas for Improvement
1. Lack of Term Insurance
It’s essential to secure your family’s future in case of any unexpected event. Currently, you do not have term insurance, which is a vital part of any financial plan.

Action Plan:

Immediate term insurance: Buy a term plan covering at least 10-12 times your annual income. This will ensure your family is financially secure if something happens to you.
2. Health Insurance Coverage
You rely on company-provided health insurance. This is risky, as you may lose coverage if you switch jobs or retire early. Having separate family health insurance will ensure consistent protection.

Action Plan:

Buy individual health insurance: Get family floater health insurance with adequate coverage for your entire family, ensuring lifelong renewability.
Supplemental critical illness cover: Consider adding critical illness coverage to protect against major health expenses.
3. EMI Management
You have significant EMIs totaling Rs 1.6 lakhs per month. While one property generates rental income, the overall EMI burden is high. Managing this will be crucial for freeing up cash flow for further investments.

Action Plan:

Prepay EMIs: Any surplus income should go toward prepaying your loans, starting with the one without rental income. Reducing this burden will ease your cash flow.
No additional loans: Avoid taking on any further debt to ensure your financial plan stays on track.
Retirement Planning
You aim to retire in 10 years, at age 52. With your current lifestyle and goals, your investments will need to provide enough to cover your post-retirement expenses. Here’s a strategy to ensure a comfortable retirement:

1. Estimate Future Expenses
Your current schooling costs are Rs 1.2 lakhs per year, and other living expenses include vacations and daily needs. Over the next 10 years, expenses will increase due to inflation, and you must account for these future costs when planning your retirement.

Action Plan:

Create a detailed budget: Track all your current expenses and project them for the next 10 years, considering inflation. This will give you a clearer picture of your financial needs after retirement.
2. Build a Retirement Corpus
With 10 years to go, you will need to create a solid retirement corpus. The Rs 50 lakhs you currently have, along with further investments, will need to grow substantially. Here’s how to optimize this growth:

Action Plan:

Increase SIP contributions: Start contributing more to your SIPs as soon as your EMI burden reduces. A higher SIP contribution in actively managed mutual funds will provide better growth potential over the next decade.
Diversify investments: Include a mix of large-cap, mid-cap, and flexi-cap funds to ensure a balanced risk-return profile. Actively managed funds, especially those recommended by a certified financial planner, will perform better than index funds or ETFs.
Regular portfolio review: Work with a certified financial planner to review your portfolio annually. Ensure your funds are performing as expected and make necessary adjustments.
3. Plan for Post-Retirement Income
After retirement, you will need a reliable source of income to meet your monthly expenses. Your investments must be structured to provide regular income, adjusted for inflation.

Action Plan:

Systematic Withdrawal Plans (SWP): Set up SWPs in mutual funds to provide a regular, inflation-adjusted income post-retirement.
Emergency Fund: Set aside a portion of your corpus in a liquid fund for emergencies. This will ensure you don’t have to liquidate long-term investments prematurely.
Final Insights
To achieve your goal of retiring in 10 years, you will need to fine-tune your investment strategy and reduce your EMI burden. Your current investments, while substantial, require diversification and a focus on growth-oriented funds.

Additionally, securing term insurance and individual health insurance is critical for protecting your family’s future. By prepaying your loans and increasing SIP contributions over time, you will be better positioned to build a retirement corpus capable of supporting your post-retirement lifestyle.

Finally, always remember that regular reviews with a certified financial planner are key to staying on track and adjusting for any changes in your financial situation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

..Read more

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Jan 17, 2025

Latest Questions
Sunil

Sunil Lala  |218 Answers  |Ask -

Financial Planner - Answered on Jul 18, 2025

Money
Dear Sir, I am 40 year old, my take home is 1.41 lacs per month. I have 11 year old daughter and 3.5 year old son. I am investing 12.5k per month in SSY (27 lacs in total) and 12.5k per month in PPF (6 lacs in total). Investing around 4k in SIP in index fund (1.2 lacs) and I have around 30 lacs in FD. I have taken 1cr term insurance and have 10lakhs health insurance for family. FD is not giving me satisfactory returns and not beating the inflation. I am planning to invest 25 lacs in buying a site. I don't have any loans and don't have major commitment other than children education. I request you to guide me on future investments, I would like to get a constant income of 1-1.5 lacs PM after 5-6 years.
Ans: Hi Ajay, understand the SSY and PPF are also not givin you enough returns, your SIP in index funds and FD all are ineffecient return making assets. Buying a site will not ensure liquidity when you will need it the most, and 10L health insurance for a family of 4 is low as well.
Having a constant income of 1-1.5L p.m. means annually 12-18L of income, and to have a passive income like that, your corpus should be 15-16x of the annual income --> which means we are looking at 1.8Cr to 2.7Cr of corpus in the next 5-6 years.
There are a lot of flaws in your investment strategies because at one place you are wanting to lock in money at a site, in SSY and PPF and on the other you are looking to earn 1-1.5L p.m. which is possible through liquid investments.
I would love to help you out, but to me it feels like there is a gap in the knowledge about investments and personal finance. If you are wanting to have a detailed conversation about your investments and where you can park your money to grow it to have the monthly income you want after a certain number of years, visit my website www.slwealthsolutions.com

...Read more

Sunil

Sunil Lala  |218 Answers  |Ask -

Financial Planner - Answered on Jul 18, 2025

Money
I m a 44 yrs old . My salary 85k net per month. Rent income 1.20 lakh per month. Fixed deposit 46 lakh PPF 21.35 lakh Lap loan 46.50 lakh OD loan 6.50 lakh. Mutual funds 2.75 lakhs Shares 3.25 laks Property in Noida, jewar, dwarka , Rohini and faridbad. My wife is earning 50k per month but not contributing in assests we spend his salary on vacations and foods and cloths as she don't want to save. According to her it is my responsibility to provide foods and investment. At this age I m going to lose my jobs. I can manage all things with rental but how can I build up financial assets from here on and my triple source like salary, rental and interest helps me a lot in past. I m simple man with basic needs no extra expenses on me. But kids are in college in class 9 how can I build assests and ensure their good education
Ans: Hello Sanjiv, you have a lot of money parked in debt instruments like FD, PPF and not-liquid assets like properties as well. I would advise you to calculate your income from each asset on a yearly basis in % terms. I think that will give you a true picture of what you are earning as of now vs what you can earn in equity mutual funds which are managed by professionals.
We can have a detailed conversation around your situation and I can help you understand what re-shuffling can be done in your asset portfolio (with continuing rental+interest income) with greater capital appreciation, visit my website www.slwealthsolutions.com if you are interested

...Read more

Anu

Anu Krishna  |1651 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 18, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Relationship
I'm 34 and have spent the last six years trying to find a genuine partner through every possible route -- dating apps, matrimonial sites recommended by relatives, setups through friends. It's been exhausting and disheartening. The men I match with are either secretly married, emotionally unavailable, or bluntly state that they aren't interested in commitment. On matrimonial sites, I keep coming across entitled MCPs (male chauvinist pigs) who want a docile, obedient wife -- someone to bear their children, manage their homes, and take care of their aging parents like we are living in 1950. The few men I've genuinely connected with emotionally have told me upfront that they don't believe in marriage or aren't looking for anything serious. And here I am, still single. I've been seriously considering signing up for an app purely focused on intimacy. I'm not looking to sleep around without thought. What I crave is connection, touch, and feeling desired, even if it doesn't lead to marriage. I've dated so many men in search of love, and yet, I've ended up alone. Is it wrong to stop chasing 'the one' and instead focus on fulfilling my emotional and physical needs without expecting long-term commitment?
Ans: Dear Anonymous,
It's obvious to me that you haven't yet sat yourself down and asked:
- What do I want in my life partner?
- What do I want from a marriage?

You have shared about what others want from you; what do you want from a potential association?
Being clear will help you stop this chase and anyway, there's no 'The One'...if you find one, do let me know and I will be happy for you...Marriage is not about finding the right person but by knowing what you want from a marriage. This narrows down your choices to someone that close to your thoughts and value systems and then you both have to make the marriage work.

Now, if you are not looking for a committed association or a long-term one, then you will have to keep playing games with people who are half serious or just looking for some fun and hey, the chances of you being emotionally hurt will be greater here...
So, be clear on what you want and then you will know the next step, the next conversation that you wish to have with a person with more certainty that increases your chances at a good sturdy relationship.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...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