Hello Sanjeev ji, hope you’re doing good. I have the following MFs running (except SBI, all are barely 6 months old) for which I want your advice and guidance on change of scheme or reshuffling of amount or whatever. SBI Contra: 15k per month SBI Small Cap: 20k per month SBI Equity Hybrid: 5k per month Quant Small Cap: 25k per month Quant Mid Cap: 10k per month Quant Flexi Cap: 8k per month Tata Digital India Fund: 12k per month Nippon India Growth: 5k per month Nippon India Nifty Smallcap 250: 2.5k per month Parag Parikh Flexi Cap: 7k per month Motilal Oswal Nasdaq 100: 5k per month ICICI Technology: 5k per month ICICI Transportation & Logistics Fund: 2.5 k per month HDFC Transportation & Logistics Fund: 5k per month UTI Flexi Cap: 5k per month Total investment: 1.34 Lac per month My goal is to create a corpus of about 3 cr in next 7 yrs. please suggest if I’m on the right track. Recently I did the portfolio balancing and terminated Axis MF schemes as they were not yielding good returns. Btw, my existing investments in MFs have already created a corpus of 30L.

Ans: You have five family members. Your spending pattern is moderate.



You own equity shares worth Rs. 1.45 crore.



Mutual fund investments are worth Rs. 82 lakhs.



Running SIPs of Rs. 22,000 in small cap, multicap, and flexicap funds.



You have a home costing Rs. 90 lakhs. Loan is fully paid.



You also own another house worth Rs. 65 lakhs.



Health insurance of Rs. 25 lakhs floater + Rs. 1 crore super top-up.



Term insurance of Rs. 2 crore each for you and your wife.



Daughter is 10 years old. Need Rs. 60 lakhs after 6 years for education.



Planning to retire between age 58 and 60.



Appreciation and Positives

You have created strong asset base at an early stage.



Your insurance coverage is very good.



Loan-free status and regular SIP show great discipline.



Moderate expenses reflect financial maturity.



Suggestions for Daughter's Education

Education goal is within 6 years.



Equity shares and small cap MFs are high-risk for short-term goals.



Please move required Rs. 60 lakhs in staggered manner.



Shift to low-volatility hybrid or short-duration debt mutual funds.



Start switching now and complete it within next 3 years.



This will reduce volatility risk and protect capital.



Retirement Planning Evaluation

Retirement in 16 to 18 years is a medium to long-term goal.



Your existing corpus of Rs. 2.27 crore (Shares + MF) is strong.



SIP of Rs. 22,000 may not be enough for your target retirement.



Retirement corpus needed could be Rs. 6 crore to Rs. 7 crore approx.



You may need to increase SIP gradually to Rs. 50,000 or more.



Focus more on multicap and flexicap funds.



Avoid small cap for retirement corpus due to volatility.



Use active funds with good long-term track record.



Avoid index funds due to lack of downside protection.



Direct vs Regular MF Investing

Investing directly is not suitable for goal-based planning.



Direct plans lack handholding and review.



Regular plans through MFD + Certified Financial Planner offer continuous tracking.



Helps optimise portfolio and rebalance when needed.



Real Estate

No new investment is needed in real estate.



Real estate is illiquid and gives poor inflation-adjusted returns.



Holding two homes is enough.



Life Insurance

Term cover of Rs. 2 crore each is good.



Please review sum assured every 3 years.



Increase cover if income increases substantially.



Health Insurance

Rs. 25 lakh floater and Rs. 1 crore top-up are excellent.



You have good protection against medical expenses.



Estate Planning

Please write a Will for both of you.



Nominate each other and your daughter in investments.



Create a basic estate plan for smooth transition of assets.



Tax Planning

Track capital gains from equity MFs.



LTCG above Rs. 1.25 lakh taxed at 12.5%.



STCG taxed at 20%.



Debt fund gains taxed as per your income slab.



What Needs Focus Now

Prioritise daughter’s education goal. Begin reallocation today.



Review and increase retirement SIP amount steadily.



Avoid direct and index funds.



Continue regular review of term cover, health cover.



Do not invest in annuities or real estate now.



Rebalance equity portfolio. Prefer diversified and actively managed MFs.



Finally

You are financially stable and secure.



You need few tactical shifts to optimise your plan.



Focus on structured goal-based investing.



Follow 360-degree approach for financial well-being.



Engage with a Certified Financial Planner regularly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You are 52 now. You want to work till 65.

You have 13 more earning years. You are thinking about retirement planning. That is timely.

You also have dependent family members. You also have big goals like son’s education and marriage.

Now let’s build a 360-degree view and give a clear action plan.

Understanding Your Current Financial Profile
Your monthly income is Rs. 3.5 lakhs. That is a strong income.

Your current savings rate is only 10%. That is Rs. 35,000 per month.

You are living in your own house. There is no loan on it. That is a strength.

You have taken a loan of Rs. 75 lakhs for a second house. EMI is Rs. 80,000.

You already have assets in many categories. Let’s list them below.

Your Asset Distribution Today:

Equity portfolio: Rs. 50 lakhs

Mutual Funds: Rs. 5 lakhs

Fixed Deposits: Rs. 10 lakhs

PPF: Rs. 7 lakhs

Physical Gold: Rs. 20 lakhs

Father’s home (in your name): Rs. 80 lakhs (Not for sale now)

Immediate Observations on Current Strategy
Your debt EMI is around 23% of your monthly income. That is on the higher side.

Your overall investments are diversified, but need better allocation.

Your gold holding is 20% of your investment value. That is too high.

You have very low exposure to mutual funds. That needs to be increased.

Your equity value is high. But need to check the quality and risks.

You are saving only 10% of income. That needs to be doubled.

Your Key Goals Identified
Retirement at age 65. You have 13 years to plan.

Son’s higher education abroad. It is a near-term high-cost goal.

Son’s marriage. This will also need large funds.

Managing your father’s needs. It needs regular cash flow.

Regular income for wife in your absence. This must be secured too.

Retirement Fund Planning
Let’s first plan for retirement. That is your most important long-term need.

You are 52 now. You want to retire at 65. So, 13 years of saving time.

After 65, you may live for 25 more years. So plan for at least 25 years.

You may need Rs. 80,000 per month (in today’s value) during retirement.

Due to inflation, this will grow. You may need over Rs. 2 lakhs monthly at retirement.

So, you must create a retirement corpus of at least Rs. 4.5 to 5 crores.

This includes both lifestyle expenses and healthcare.

This corpus must be built step by step from now.

Strategy for Retirement Corpus
Start saving 25% of your income every month for retirement. That is Rs. 87,500.

Increase your mutual fund allocation for long-term goals.

Use actively managed funds. Do not use index funds.

Index funds lack fund manager skill. They just copy the market.

In market downturns, index funds may fall harder.

Actively managed funds help manage risk better.

Also, do not invest in direct mutual funds.

Direct plans may save cost but offer no personal advice.

Instead, invest via MFDs who are guided by Certified Financial Planners.

You get personalised planning and continuous review.

Review asset allocation every year with help of your planner.

Education Planning for Son
This goal is coming soon. You will need a big amount.

Find out the total cost of his course. Include tuition, living, travel.

Start a dedicated SIP for this goal.

Use low-duration funds if the goal is less than 3 years away.

If you need funds within 2 years, avoid equity.

For 3-5 years horizon, use balanced allocation funds.

Don’t use FDs for long horizon goals. FD returns are not inflation-beating.

Also avoid gold for education goals. Gold is not predictable.

Use mutual funds with steady performance.

Rebalance quarterly if possible. This reduces risk.

Marriage Planning for Son
Set a budget for the wedding.

You still have time for this goal.

Use long-term mutual fund SIPs to build the marriage fund.

Choose good performing diversified funds.

Don’t stop SIPs midway.

Review once a year to check target progress.

Avoid investing in real estate for this goal.

Real estate has low liquidity and high entry cost.

Your EMI and Real Estate Strategy
EMI of Rs. 80,000 per month is fixed now.

That is around 23% of your monthly income.

Try to prepay this home loan faster.

Make annual part-payments if possible.

Reduce the interest outgo and loan term.

Don’t buy another property now.

Real estate has high cost and low flexibility.

Also, selling a property takes time and effort.

Instead of more properties, focus on mutual funds.

Mutual funds offer better liquidity and professional management.

Also, no maintenance cost like in property.

Optimising Your Investment Portfolio
Let’s optimise your current investments. Below are ideas:

Equities (Rs. 50 lakhs):

Review portfolio quality and sector allocation.

Exit high-risk or non-performing stocks.

Diversify better across sectors and themes.

Avoid too much exposure to small-cap or penny stocks.

Consult a Certified Financial Planner for portfolio review.

Mutual Funds (Rs. 5 lakhs):

This is very low compared to equity. Increase it step by step.

Add SIPs in actively managed funds.

Avoid NFOs and trendy sectoral funds.

FDs (Rs. 10 lakhs):

These give low returns after tax.

Keep only for emergency fund or 1-year goals.

Rest should be reallocated to better products.

PPF (Rs. 7 lakhs):

Continue yearly contributions till retirement.

This gives tax-free and safe returns.

Max out yearly limit for compounding benefits.

Gold (Rs. 20 lakhs):

This is 20% of your portfolio. That is too high.

Reduce it to 10% slowly.

Avoid physical gold. Instead shift to Sovereign Gold Bonds.

Physical gold has storage, wastage, and purity issues.

Family Protection Strategy
Life Insurance:

You must have a term plan of 15 to 20 times annual income.

This covers your family’s future if something happens to you.

Don’t buy investment-linked policies.

If you hold LIC or ULIP or endowment plans, surrender them.

Reinvest that amount in mutual funds.

Health Insurance:

Ensure separate cover for all family members.

Include your father and son too.

Corporate cover is not enough. Take individual policy.

Also add critical illness cover.

Estate Planning and Father’s Home
Your father’s home is in your name.

You don’t plan to sell now. That is fine.

Keep all documents clear and updated.

Make a registered Will. Mention distribution wishes clearly.

Nominate your wife and son in all financial instruments.

This avoids legal issues later.

Action Plan Summary
Increase your monthly saving to 25% of income

Use mutual fund SIPs to build retirement, education, marriage goals

Avoid index funds and direct plans. Use active funds via MFDs with CFP help

Reduce exposure to real estate and gold

Review equity portfolio with professional help

Prepay second home loan gradually

Secure family with term insurance and health cover

Rebalance portfolio yearly

Create Will and update nominations

Finally
You have strong income and some assets. That is a good start.

But current savings and portfolio allocation need changes.

Real estate and gold are high. Mutual fund exposure is low.

You need to shift slowly from fixed assets to liquid investments.

You also need goal-based planning. Separate funds for each goal.

Your retirement corpus target is Rs. 4.5 to 5 crores.

With 13 working years left, it is possible with discipline.

Take help from a Certified Financial Planner to build and monitor your plan.

Stay invested regularly. Review yearly. Protect your family always.

This approach will bring financial peace and clarity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: HI,

Don't you think that you might be engaging in malpractice by changing your category from General to OBC-NCL? Please remember that government agencies are still monitoring this, and it could lead to significant issues for you in the near future.

Ans: The entire income will become taxable but all the other deductions are available for her to get her income down to no tax limit.

Ans: Hello, depends if you select the new tax regime or old tax regime

Can have a detailed understanding for the same on my LinkedIn profile, attaching my profile :
https://www.linkedin.com/in/ca-vivek-lala-21a2038b?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app

Ans: Zero from FY 25-26

Ans: Age: 32

Profession: Marine Engineer

Location: Andhra Pradesh

Family: Wife and Daughter

Assets Owned:

Land purchased 2 years ago – Rs. 38 lakhs

Land purchased 6 months ago – Rs. 60 lakhs

Cash kept for parents’ retirement – Rs. 30 lakhs

Cash Outflow Already Done:

Rs. 12 lakhs paid for UK relocation process

Still Required for UK Relocation:

Rs. 28 lakhs remaining to pay

No Job Yet in UK

One Option Suggested by Friend:

Buy G+2 house

Cost involves Rs. 1 crore loan + use Rs. 30 lakhs retirement fund

Estimated rent Rs. 30,000 per month

Understanding the UK Move
1. Basic Expense Preparedness

You need to first complete UK relocation cost – Rs. 28 lakhs.

After that, you must have living expenses for at least 6 months.

For a family, monthly cost in the UK can be around Rs. 2.5 lakhs.

So you need Rs. 15 lakhs for six months survival.

Total required = Rs. 28 lakhs + Rs. 15 lakhs = Rs. 43 lakhs

You must arrange this before any other investment.

2. Job Readiness in UK

Job search may take 3 to 6 months.

Marine Engineering jobs exist but not guaranteed quickly.

Try to start applying before you travel.

Connect with people from your industry in UK online.

Jobless time in UK will pressure your savings.

3. Currency and Emergency Factors

UK expenses will be in British Pounds.

Currency value changes can affect your money.

You must carry buffer cash for emergencies.

No income, new country, new rules – safety money is important.

Evaluating Property Suggestion
1. Loan Size and EMI Pressure

Rs. 1 crore loan for house is very risky now.

EMI for Rs. 1 crore loan can be around Rs. 75,000 per month.

Your rental income is Rs. 30,000 per month only.

EMI gap is Rs. 45,000 per month.

No job in UK yet – this will break your cash flow.

2. Misuse of Parents’ Retirement Money

Rs. 30 lakhs is saved for your parents.

This is their safety for the rest of life.

Using this for buying property is risky and wrong.

Parents’ money must never be used for experiments.

They may not have future income to recover loss.

3. Real Estate Investment Problems

Real estate looks attractive but has big risks.

Rent is not guaranteed. Property repair cost is high.

Property is not easy to sell quickly if needed.

Price growth is not steady.

You will be in UK – managing this property from there is tough.

If tenant leaves, you will have zero income.

You will still pay full EMI every month.

4. Friend’s Suggestion Needs Caution

Friends can give ideas.

But you carry the financial burden, not them.

Your future, your parents, and your daughter depend on this.

One mistake can destroy years of your work.

Always make independent decisions after evaluating risk.

What You Should Do Now
1. Protect Your UK Relocation Plan

Complete the Rs. 28 lakhs balance for UK.

Keep extra Rs. 15 lakhs ready as survival fund for 6 months.

This must be your first priority now.

2. Keep Parents’ Retirement Fund Safe

Do not touch the Rs. 30 lakhs set aside for parents.

This is for their medical needs and living support.

Invest this amount in actively managed mutual funds.

Invest through a Certified Financial Planner.

Let a trusted Mutual Fund Distributor guide the execution.

3. Avoid Real Estate Investments Now

Do not buy property now.

Your income is not stable.

You will move abroad soon.

Rental return is low.

EMI is very high.

Risk is too much compared to benefit.

4. Start Job Search Early in UK

Apply for jobs in marine field.

Connect with UK professionals on job portals.

Update your resume in UK format.

Have video interviews before landing in UK.

Look for backup jobs if marine role takes time.

5. Secure Your Family in UK

Keep medical insurance ready for family.

Know the basic rights and rules in UK.

Look for schools early if needed.

Reduce lifestyle expenses in beginning phase.

Focus on income first.

6. Begin Systematic Investment for Long Term

Once job is secured, begin long term investments.

Use actively managed mutual funds with SIP.

Choose equity and hybrid mutual funds for long term growth.

Avoid index funds. They don’t beat inflation always.

Index funds have no flexibility in fund manager decisions.

Active funds adjust faster to market changes.

7. Use Certified Financial Planner for Support

Work with a CFP to make a full financial plan.

Planner will help in India and abroad strategy.

CFP knows how to balance between family, retirement, and wealth creation.

A planner gives regular review and adjustments.

Finally
Your current focus should be simple.

Complete UK relocation cost.

Keep 6 months emergency fund.

Protect your parents’ Rs. 30 lakhs retirement money.

Avoid risky new loans and real estate deals.

Settle in UK first. Get income. Then start long term investment plan.

Work with a Certified Financial Planner for all key money decisions.

You are already taking steps towards a better life. That is a great start.

With the right moves now, your future will be financially strong.

Take one step at a time with full care.

Don’t fall into pressure or shortcuts.

Secure your parents, your family and yourself first.

Then grow your wealth with smart and safe investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Lets assume you bought the house in FY 2004-05 and sold in FY 24-25, the cost of the house is 51L
So the tax liability is 7L*20.8% = 145600

Ans: They will be added to your total income