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NRI in Saudi with 30L savings, earning 4.5L/month: Invest in Gold, Property, or Stay Put?

Milind

Milind Vadjikar  |1182 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Jan 01, 2025Hindi
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Hello Gurus, I am an NRI living in Saudi Arabia, aged 38. I am earning 4.5L a month and have around 30L in savings. I don’t own anything and want to start investing, however I am unsure of what to do. Should it be gold, a property on loan or nothing and stick with maximum saving strategy. Please suggest as I am naive to investment ???? Note: Please avoid profit through interest solutions.

Ans: Hello;

Self owned property should definitely be top on your priority.

Also 15-20% allocation to Gold is desirable but preferably through ETFs/gold funds.

You may also invest in funds/ETFs which are Shariah compliant for eg Tata Ethical fund or Nippon India ETF Shariah BeES.

Best wishes;
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.
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Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2024

Asked by Anonymous - May 18, 2024Hindi
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Hi sir my age is 29 how to start in investment my one income 900 rupees I don't have any savings please help me how to savings stat and investment plans
Ans: It's great that you want to start investing and saving. With an income of ?900 per month, it can be challenging, but every small step counts. Let’s explore how you can begin saving and investing.

Understanding Your Current Financial Situation
First, understand your income and expenses. Track your monthly spending to identify areas where you can cut back. Even small savings can add up over time.

Setting Realistic Goals
Start with small, achievable goals. Aim to save a portion of your income each month. This helps build a habit of saving.

Creating a Budget
Track Income and Expenses

List all your monthly income and expenses.
Identify non-essential expenses you can reduce or eliminate.
Allocate Savings

Aim to save at least 10% of your income. With ?900, this means saving ?90 each month.
Emergency Fund

Build an emergency fund for unexpected expenses. Start small, aim for ?500 initially.
Saving Methods
Savings Account

Open a basic savings account. It’s safe and earns a small interest.
Recurring Deposit (RD)

Consider starting a recurring deposit with your bank. You can deposit a small fixed amount each month. It’s a disciplined way to save.
Basic Investment Options
Systematic Investment Plans (SIPs)

Start a SIP with as little as ?500 per month. Mutual funds have options for low initial investments. SIPs help in disciplined investing and can offer good returns over time.
Public Provident Fund (PPF)

PPF is a safe and long-term investment option. You can start with small amounts and increase contributions as your income grows.
Government Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY)

Open a Jan Dhan account. It offers no minimum balance requirement and other benefits like insurance.
Atal Pension Yojana (APY)

A pension scheme for workers in the unorganised sector. You can contribute small amounts to secure your retirement.
Increasing Your Income
Skill Development

Invest in learning new skills to increase your earning potential. Look for free or low-cost courses online.
Part-Time Work

Consider part-time jobs or freelancing to supplement your income. This additional income can boost your savings and investment capacity.
Discipline and Patience
Consistency

Regular saving and investing, no matter how small, will yield results over time. Be consistent with your contributions.
Avoid Debt

Avoid unnecessary loans or credit. If you must borrow, ensure you can manage the repayments.
Reviewing and Adjusting
Regular Review

Review your budget and savings plan regularly. Adjust your savings and investment as your income grows.
Seek Advice

Consult a Certified Financial Planner for personalized advice as your financial situation evolves.

Starting with a small income can be tough, but your determination to save and invest is commendable. Every rupee saved is a step towards financial security. Stay committed, and over time, you’ll see the benefits of your disciplined approach.

Conclusion
Beginning your investment journey at 29 with a limited income is challenging but possible. Start by creating a budget, saving consistently, and exploring safe investment options. Increase your income through skill development and part-time work. Regularly review your progress and adjust your plan as needed. Your commitment to saving and investing will pave the way for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Asked by Anonymous - Jul 07, 2024Hindi
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Hi I'm 33 years old single male with 60 k salary per month I have 16 lakhs in my savings account but i don't have any policies or any other investments my monthly expenses are around 40 k don't have my own home please suggest me where to invest and how to invest
Ans: You earn Rs. 60,000 per month.

You have Rs. 16 lakhs in savings.

Your monthly expenses are Rs. 40,000.

Let's plan a 360-degree investment strategy for you.

Emergency Fund
Keep an emergency fund.

It should cover 6 months of expenses.

This means Rs. 2.4 lakhs.

Keep it in a liquid account.

Health and Life Insurance
Get health insurance.

Cover at least Rs. 5 lakhs.

Health issues can lead to high costs.

Consider term life insurance.

It is cheaper and gives high cover.

Cover at least 10 times your annual income.

This means Rs. 72 lakhs.

Systematic Investment Plans (SIPs)
SIPs are a great way to invest.

They help in disciplined investing.

Invest Rs. 10,000 per month in SIPs.

Choose a mix of large-cap, mid-cap, and small-cap funds.

This ensures diversification.

Actively managed funds can outperform.

They have fund managers who track the market.

This can lead to better returns.

Public Provident Fund (PPF)
PPF is a safe investment.

It offers tax benefits.

Invest Rs. 1.5 lakhs per year.

This is for long-term savings.

It has a 15-year lock-in period.

This helps in building a retirement corpus.

Diversification
Diversify your investments.

Don't put all money in one type of investment.

Use mutual funds for diversification.

They spread risk across many stocks.

Goal-based Investing
Identify your goals.

Short-term goals can be 1-3 years.

Medium-term goals can be 3-7 years.

Long-term goals can be 7+ years.

Choose investments based on these goals.

Regular Review
Review your investments regularly.

Ensure they align with your goals.

Make adjustments as needed.

Tax Planning
Invest in tax-saving instruments.

They reduce your taxable income.

Options include ELSS funds and PPF.

This helps in efficient tax planning.

Financial Planner
Consult a Certified Financial Planner.

They provide professional advice.

They help in making informed decisions.

They track market trends.

This helps in optimizing your investments.

Final Insights
Start with an emergency fund and insurance.

Then, invest in SIPs and PPF.

Diversify your portfolio.

Review your investments regularly.

Seek advice from a Certified Financial Planner.

This ensures a well-rounded financial plan.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

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Hi I am 33 years old female i currently not having any savings but i want to start i hva 60lcs worth house no emis no loans.. salary 91k per month.. expenses most of 25k - 30K per month. Let me know how i can i plan where to invest i have 2years old daughter i am looking to first buy a property in next 5 years and to save for my child education. Thanks kindly help me tostart my journey
Ans: Current Financial Snapshot
Age: 33 years
Salary: Rs. 91,000 per month
Expenses: Rs. 25,000 - 30,000 per month
Assets: Rs. 60 lakh house (no EMIs or loans)
Goals: Buy a property in 5 years, save for child's education
Dependents: 2-year-old daughter
Creating an Emergency Fund
Importance of an Emergency Fund
Security: Protects against unforeseen expenses
Peace of Mind: Ensures financial stability
Recommendation
Target Amount: 6 months of expenses, around Rs. 1.5 lakh
Investment Option: Liquid funds for easy access and better returns than savings accounts
Starting Systematic Investments
Systematic Investment Plan (SIP)
Benefit: Rupee cost averaging and disciplined investing
Initial Amount: Start with Rs. 15,000 per month
Diversification
Equity Funds: High growth potential, long-term gains
Debt Funds: Stability, lower risk
Saving for Child's Education
Education Planning
Estimate Costs: Account for inflation in education expenses
Investment Options: Child-specific mutual funds and PPF
SIPs for Education
Dedicated SIP: Start a dedicated SIP of Rs. 10,000 per month for your child’s education
Equity Exposure: Focus on equity funds for long-term growth
Planning for Property Purchase
Property Investment
Timeline: Plan to buy property in the next 5 years
Down Payment: Save at least 20% of the property cost
Monthly Savings
Dedicated Savings: Save Rs. 20,000 per month for down payment
Investment Vehicle: Use recurring deposits or short-term debt funds for stability
Insurance Coverage
Life Insurance
Recommendation: Purchase a term insurance plan
Coverage: Sum assured should be at least 10 times your annual income
Health Insurance
Recommendation: Get a comprehensive health insurance policy
Coverage: Include family floater plan to cover your daughter as well
Retirement Planning
Long-Term Goal
Start Early: Begin investing for retirement now for compounding benefits
Investment Options: NPS and diversified equity funds
Monthly Contribution
Recommendation: Allocate Rs. 10,000 per month towards retirement
Additional Recommendations
Regular Reviews
Financial Check-Ups: Review your financial plan every 6 months
Adjustments: Make necessary adjustments based on changing circumstances
Professional Guidance
Certified Financial Planner: Consult a CFP for personalized advice
Regular Funds: Invest through a Mutual Fund Distributor with CFP credential for better support and guidance
Final Insights
Build an emergency fund first.
Start SIPs for disciplined investing.
Save specifically for child’s education.
Plan for property purchase within 5 years.
Ensure adequate insurance coverage.
Begin retirement planning early.
Regularly review and adjust your financial plan.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8265 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 02, 2025

Asked by Anonymous - Jan 01, 2025Hindi
Listen
Money
Hello Gurus, I am an NRI living in Saudi Arabia, aged 38. I am earning 4.5L a month and have around 30L in savings. I don’t own anything and want to start investing, however I am unsure of what to do. Should it be gold, a property on loan or nothing and stick with maximum saving strategy. Please suggest as I am naive to investment ???? Note: Please avoid profit through interest solutions.
Ans: At 38, your financial potential is commendable. Earning Rs 4.5 lakh monthly with Rs 30 lakh in savings shows great discipline. This sets the foundation for effective financial planning. It's crucial to grow your wealth systematically while adhering to your values and goals. Let’s explore the options that align with your requirements.

Importance of Diversified Investments
Keeping all your savings in a bank or single asset is not advisable. Inflation erodes the value of stagnant money. A diversified portfolio protects your wealth and ensures long-term growth. Consider investment options that align with Shariah principles to avoid interest-based earnings.

Shariah-Compliant Mutual Funds
Shariah-compliant mutual funds are a good fit for your values. These funds avoid interest-based instruments and focus on ethical investments.

Such funds invest in companies adhering to Islamic principles.
They avoid businesses involved in alcohol, gambling, or lending.
These funds are managed by professionals, ensuring growth potential.
They offer transparency and align with your religious beliefs.
However, actively managed funds with certified financial planners ensure personalized guidance and better returns.

Avoid direct funds as they lack professional advisory, making it harder to track performance. Regular plans through a certified financial planner provide tailored advice and periodic reviews.

Systematic Investment Plan (SIP) for Consistency
SIP is ideal for disciplined investing. You can start small and increase contributions as income grows.

SIP ensures rupee-cost averaging, reducing risk during market fluctuations.
It builds a corpus over time and instills financial discipline.
Combine SIP with periodic reviews for effective long-term growth.
Avoid Real Estate at This Stage
Purchasing a property on loan may seem attractive, but it has drawbacks:

Loans create financial pressure due to EMIs.
Real estate has liquidity issues and uncertain returns.
Maintenance costs further reduce profitability.
Instead, focus on liquid and growth-oriented investments.

Gold as a Strategic Investment
Gold is a hedge against inflation and economic uncertainty. However, limit its allocation to 10-15% of your portfolio.

Gold does not generate income but retains value.
Invest in gold ETFs or digital gold for safety and ease of management.
Avoid over-allocating to gold, as it limits long-term growth.

Emergency Fund Setup
Before investing, allocate a portion of your savings to an emergency fund.

Keep 6–12 months’ expenses in a separate account.
Use liquid funds for better returns while maintaining accessibility.
This ensures financial security during unforeseen events.

Insurance Coverage
Protect your family with proper insurance coverage.

Opt for a term insurance plan with adequate coverage.
Health insurance is essential for unexpected medical expenses.
Avoid investment-cum-insurance policies as they offer low returns.
If you hold ULIPs or LIC policies, consider surrendering them and reinvesting in mutual funds.

Tax Efficiency
Understanding taxation ensures you optimize returns:

Equity mutual funds: LTCG above Rs 1.25 lakh taxed at 12.5%; STCG taxed at 20%.
Debt mutual funds: Gains taxed as per your income slab.
Tax-saving investments like ELSS help save under Section 80C.
Consult a certified financial planner for tax-efficient strategies.

Regular Monitoring
Investing is not a one-time task. Regularly review your portfolio with your planner.

Rebalance your portfolio based on goals and market conditions.
Ensure alignment with Shariah principles and financial objectives.
Periodic reviews help maximize returns and mitigate risks.
Focus on Long-Term Goals
Identify your life goals and align investments accordingly:

Retirement corpus to maintain your current lifestyle.
Children’s education or other family commitments.
Financial independence and legacy planning.
Final Insights
Your financial journey is about balancing growth and values. With the right approach, you can achieve stability and prosperity. Start with Shariah-compliant funds, a disciplined SIP approach, and a diversified portfolio. Ensure regular monitoring and guidance from a certified financial planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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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.

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