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Financial Advice: How to Invest as a 33-Year-Old Mom?

Jinal

Jinal Mehta  |99 Answers  |Ask -

Financial Planner - Answered on Jul 26, 2024

Jinal Mehta is a qualified certified financial professional certified by FPSB India. She has 10 years of experience in the field of personal finance.
She is the founder of Beyond Learning Finance, an authorised education provider for the CFP certification programme in India.
In addition, she manages a family office organisation, where she handles investment planning, tax planning, insurance planning and estate planning.
Jinal has a bachelor's degree in management studies. She also has a diploma in in financial management from NMIMS, Mumbai.
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saumya Question by saumya on Jul 25, 2024Hindi
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Hello ma'am.. I'm a 33 year old mother of a 2 yr old boy..salary is 12 lac per annum.. never invest in ppf only. Want to save and grow money..how and where to start

Ans: I would suggest that you see meet a financial planner for this purpose. They would assess your risk profile and recommend accordingly.

Ms. Jinal Mehta ,CFP
Founder

www.beyondlearningfinance.com
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  |8615 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2024

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Hello sir.. I'm a 33 year old mother of a 2 yr old boy..salary is 12 lac per annum.. never invest in ppf only. Want to save and grow money..how and where to start
Ans: You want to save and grow your money. That is a great start. First, let's understand your goals.

Short-Term Goals: Emergencies and vacations.

Medium-Term Goals: Buying a car or home.

Long-Term Goals: Retirement and child's education.

Building an Emergency Fund
An emergency fund is essential. It should cover 6 months of expenses. This fund provides financial security. You can use a savings account for this.

Starting with PPF
Public Provident Fund (PPF) is a safe option. It offers good returns and tax benefits. You can start with Rs. 500. But, it has a lock-in period of 15 years. So, it's a long-term investment.

Investing in Mutual Funds
Mutual funds are great for growth. They offer higher returns than PPF. There are different types of mutual funds.

Equity Mutual Funds: Invest in stocks. They offer high returns. Best for long-term goals.

Debt Mutual Funds: Invest in bonds. They are less risky. Best for short-term goals.

Hybrid Mutual Funds: Invest in both stocks and bonds. They balance risk and returns.

Benefits of Regular Mutual Funds
Regular mutual funds are managed by experts. They aim to beat the market. This can result in higher returns. Investing through a Certified Financial Planner ensures professional guidance.

SIP for Regular Investment
Systematic Investment Plan (SIP) is a smart way to invest. You invest a fixed amount monthly. It averages out the cost and reduces risk. Start with an amount you are comfortable with.

Avoiding Index Funds
Index funds only track the market. They do not aim to beat it. They might underperform compared to actively managed funds. Regular mutual funds, managed by professionals, aim for better returns.

Tax-Saving Investments
Consider tax-saving options. Equity-Linked Savings Scheme (ELSS) is one. It offers tax benefits under Section 80C. It also provides high returns over time.

Insurance Coverage
Ensure you have adequate insurance. Health insurance for your family is crucial. Also, consider term insurance for yourself. It provides financial security to your family.

Building a Diversified Portfolio
Diversify your investments. Don't put all your money in one place. Spread it across different assets. This reduces risk and maximizes returns.

Monitoring and Rebalancing
Regularly review your investments. Ensure they align with your goals. Rebalance your portfolio if needed. This keeps your investments on track.

Final Insights
Investing is a journey. Start with an emergency fund and PPF for safety. Move to mutual funds for growth. Use SIP for regular investment. Avoid index funds. Diversify and monitor your portfolio. Seek guidance from a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8615 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 21, 2024

Asked by Anonymous - Sep 20, 2024Hindi
Money
I am 40 year old working in PSU bank.My net salary is Rs.50000/- per month.I have 1 girl child aged 5 years.I have no saving and invested only 200000 in PPF and 100000 in MF sip (4000/-per month). I have 50 lakh life cover and 25 lakh health cover.I have 1 vehicle loan of 14 lakh.How I start investing for better future ?
Ans: You are 40 years old and work in a PSU bank. Your net monthly salary is Rs. 50,000. You have a 5-year-old daughter and need to plan for her future as well as your retirement.

At present, your financial situation includes:

A vehicle loan of Rs. 14 lakh.
Life insurance cover of Rs. 50 lakh.
Health insurance cover of Rs. 25 lakh.
Rs. 2 lakh in PPF.
Rs. 1 lakh in mutual fund SIP with Rs. 4,000 invested monthly.
Although you’ve made some initial investments, you need to expand your portfolio to secure both your and your daughter's future. Let's explore your situation from a 360-degree perspective to provide a detailed, sustainable plan.

Monthly Budget Analysis

You have Rs. 50,000 monthly income, but without savings, the focus should be on managing your expenses and repaying your loan.

Reviewing expenses: List all your fixed and variable expenses. Aim to save at least 20% of your income.

Emergency fund: Build an emergency fund of six months' expenses. You can start with Rs. 5,000 per month until you reach this goal. You can use a liquid mutual fund to park this money.

Addressing the Vehicle Loan

Having a vehicle loan of Rs. 14 lakh is a significant liability. This loan may be affecting your ability to invest more each month.

Prepayment strategy: Assess your loan interest rate. If it’s above 10%, try to pay off this loan faster. Start by allocating Rs. 5,000 to 10,000 extra towards the EMI each month. This will help you reduce the interest burden.

Loan refinancing option: If possible, you can refinance the loan at a lower interest rate to reduce your EMI. But only do this if the new rate provides significant savings.

Investment Strategy for Future Goals

To secure your future and your daughter's, you need to increase your monthly investment and diversify.

Increase SIPs: You are investing Rs. 4,000 per month in mutual funds. This amount is quite low. Ideally, try to allocate at least 20% of your income towards investments. Increase your SIPs gradually, aiming for Rs. 10,000 or more monthly.

Diversifying mutual funds: Instead of investing in a single mutual fund, diversify your portfolio by adding different categories such as large-cap, mid-cap, and small-cap funds. These categories help balance the risk and return over the long term. You can consult a Certified Financial Planner (CFP) to help choose suitable funds.

Focus on regular funds: If you’re investing in direct funds, consider switching to regular funds through a trusted mutual fund distributor or CFP. Regular funds allow for better guidance and ongoing advice from a financial expert. This ensures your portfolio stays on track with your goals.

Public Provident Fund (PPF)

You already have Rs. 2 lakh in your PPF account. The PPF is a good instrument for long-term wealth creation with tax benefits.

Increase PPF contributions: To build a stable retirement corpus, try to invest Rs. 10,000 annually in PPF. However, focus on SIPs more because mutual funds generally give better returns in the long term.
Insurance Review

You already have a life insurance cover of Rs. 50 lakh and a health cover of Rs. 25 lakh. These are good steps, but you can make a few tweaks to improve your protection.

Increase life cover: Since your daughter is still young, it would be wise to increase your life cover. A rule of thumb is to have a cover that’s 10-12 times your annual income. You can look into a term plan that provides high coverage at affordable premiums.

Health insurance: Your health insurance cover of Rs. 25 lakh is sufficient for now. However, as medical costs rise, review it every 3-5 years. You may want to increase the cover in the future.

Child's Education Planning

Your daughter is 5 years old, and planning for her higher education is crucial. Considering education inflation, you should start setting aside a dedicated amount each month for her future needs.

Education SIPs: You can open a separate mutual fund SIP dedicated to your daughter’s education. Start with Rs. 5,000 per month. Equity mutual funds are ideal for long-term goals such as education because they can offer higher returns over time.

Child plans: Avoid child insurance plans that combine investment and insurance. These plans often offer low returns and high costs. Instead, focus on mutual funds and create an education corpus separately.

Retirement Planning

You’re 40 years old and likely have around 20 years before retirement. It’s essential to create a retirement plan that ensures you can maintain your current lifestyle post-retirement.

Increasing SIPs for retirement: Apart from your daughter’s education, focus on building a retirement corpus. Increase your monthly SIPs to Rs. 10,000 specifically for retirement. You can invest in a combination of large-cap and flexi-cap funds, which provide both stability and growth over the long term.

Avoiding annuities: Don’t invest in annuities for retirement. They typically offer low returns and are not flexible.

PPF as retirement corpus: Continue contributing to your PPF account. This will give you a fixed income during retirement, along with the flexibility to withdraw at maturity.

Asset Allocation and Risk Management

Balancing risk and return is crucial when planning for long-term financial goals.

Equity exposure: At 40, you should have a higher allocation to equities for better returns. Over time, you can gradually reduce this equity exposure as you approach retirement.

Debt instruments: Along with equity mutual funds, you can also allocate some portion to debt instruments for stability. Consider investing in balanced hybrid funds, which offer a mix of equity and debt. These funds reduce the risk and help balance your portfolio.

Review annually: Keep reviewing your portfolio every year. Make adjustments based on market conditions and your financial goals.

Estate Planning

It’s never too early to think about estate planning, especially when you have dependents.

Creating a will: Draft a simple will that outlines how your assets should be distributed. This ensures that your family will not face legal complications in the future.

Nomination in investments: Ensure that you’ve updated the nomination details in all your investments, including mutual funds, PPF, and bank accounts.

Financial Discipline and Monitoring

Consistency is key to building wealth over time. Here are a few tips to ensure you stay on track:

Automate investments: Set up automatic transfers for your SIPs and PPF contributions. This helps you remain disciplined and ensures timely investments.

Track your progress: Use a financial app or maintain an excel sheet to track your investments. This will help you understand how your portfolio is growing.

Consult a Certified Financial Planner: Since financial planning can be overwhelming, working with a CFP will give you better direction. They can regularly review your portfolio, suggest improvements, and help you achieve your financial goals.

Finally

You are already on the right path with insurance and initial investments. Now, by increasing your SIPs, managing your loan, and planning for your daughter’s future, you can build a secure financial future.

Be patient and stay committed. Your efforts will yield good results over time, ensuring both you and your family are well taken care of.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
Instagram: https://www.instagram.com/holistic_investment_planners/

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Ramalingam

Ramalingam Kalirajan  |8615 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 30, 2025

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Hello Sir, I am 40 yrs old, I have 2 childrens (1 daughter & 1 son, 7 & 3 yrs old), Currently My in hand salary is 60 K, I have only 1 SBI life policy in which I invest 2k monthly, I don't have any SIP or any other policies, Yearly I put 30-40 K in PPF account, My monthly expenses near about 35 K (including rent, children fee, home expenses etc) I don't have any type of loan. I want to do saving for children's education & for my retirement for future, also I have ancestral home, kindly guide me.
Ans: Your income of Rs 60K per month is stable.

You have a good habit of saving in PPF.

Your expenses are manageable, and you have no loans.

You have an SBI Life policy, but no mutual fund investments.

Your goal is to save for children's education and retirement.

Evaluating Your Existing Investments
SBI Life Policy
Investment-cum-insurance plans have low returns.

Surrender the policy and reinvest in better options.

Get a term plan for financial security instead.

PPF Strategy
PPF is safe but has limited growth.

Continue for long-term security, but don’t rely only on it.

Optimising Your Savings
Emergency Fund
Keep at least 6 months’ expenses in a savings account or liquid fund.

This ensures financial safety during unexpected situations.

Children's Education Planning
Education costs will rise with inflation.

Invest in actively managed mutual funds for long-term growth.

Avoid fixed deposits for long-term goals.

Retirement Planning
You have no retirement savings apart from PPF.

Start investing monthly in mutual funds for compounding benefits.

Delay will make retirement planning difficult.

Creating a Balanced Investment Strategy
SIP Investments
Invest through SIPs in actively managed mutual funds.

Choose funds based on your risk tolerance.

Increase SIPs whenever your income grows.

Asset Allocation
Balance investments between equity and debt.

Equity gives high returns, and debt gives stability.

Avoid putting all money in one asset class.

Final Insights
Your income allows you to invest regularly.

SBI Life policy should be surrendered and reinvested.

PPF is good but not enough for long-term goals.

Invest in SIPs for children’s education and retirement.

Keep an emergency fund for financial security.

Start early to benefit from compounding.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Nayagam P

Nayagam P P  |5560 Answers  |Ask -

Career Counsellor - Answered on May 31, 2025

Asked by Anonymous - May 30, 2025
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My son has secured 85% in ICSE 12 th board with PCM, Eng n Mass communication. In PCM group he has secured 61% only hence not eligible for BITSAT, could not qualify JEE mains (20percentile). NDA not cleared. Appeared in WBJEE. Result awaited. Thru CUET, he wants to study English literature in the best colleges of India. He is very good at English n secured 98%. He is the only child, we want him to be technical graduate, so that he is employable and can take over from his father, who worked with ALFALAVAL, now has his own techmart company and is a dealer of ALFALAVAL a Swedish MNC in heavy Engg
Ans: Your son’s 98% in English and 85% overall in ICSE align strongly with BA English (Hons) at top CUET colleges like St. Stephen’s College (DU), Lady Shri Ram College, or Christ University, which prioritize language proficiency and holistic profiles. However, to balance technical employability, consider interdisciplinary programs such as BA English with Digital Humanities (DU) or Integrated BA+MA in English (EFLU Hyderabad), supplemented by certifications in technical writing, project management, or business analytics to align with your family’s engineering business. Alternatively, explore BSc in Computer Applications at Ambedkar University Delhi (via CUET’s General Test) or BA Economics with Data Science (JMI), blending analytical skills with humanities. If WBJEE results permit, Jadavpur University’s Comparative Literature offers flexibility to minor in technical electives. Prioritize institutions like DU or Christ University for their industry networks, enabling internships in tech-adjacent roles (content strategy, technical documentation) while maintaining literary rigor. All the BEST for your Son's Admission & a Prosperous Future!

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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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