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Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 20, 2025

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 20, 2025
Money

Hello Sir, Please suggest if I'm on the right path of saving for future. I'm 32, unmarried, and earning 1.3L per month after deductions. Relatively new to investing. 1. Started 15K MF SIP monthly since Feb '24 (66% equity, 14% debt and 20% hybrid). 2. Ppf started Apr '24 - Saved upto ~2lakh. Should I continue to invest here? 3. NPS and EPF are deducted from salary every month (7.5k and 18k resp) 4. Chit fund - Need to continue paying ~50k every month till Nov'25 and I'll get ~ 10 Lakh. What should I do with this amount? 5. LIC - need to pay ~2 lakh yearly (for another 15yrs) 6. No additional health or term insurance plans. 7. Office provides 5lakh health insurance + 60L personal accident + 80L term life (I don't understand how this works, but I believe these are yearly). Should I get separate health and term insurance? 8. Own house and no rent. 9. Personal expenses ~20k monthly Might be getting married mid next year and need to have ~15lakh to cover expenses. Please suggest.

Ans: You are thinking in the right direction.
Your structured savings approach is a good start. Let us now assess your investments step-by-step.

Your Income and Expenses Overview
Monthly take-home: Rs. 1.3 lakh

Monthly personal expenses: Rs. 20,000

No rental burden (as you own a house)

Existing liabilities: Chit fund (Rs. 50k/month till Nov 2025), LIC (Rs. 2 lakh/year)

You are saving more than 50% of your income. That’s very good.
This high saving rate gives flexibility for long-term wealth creation.

Mutual Fund SIPs
Started: Feb 2024

Monthly SIP: Rs. 15,000

Allocation: 66% equity, 14% debt, 20% hybrid

Our Evaluation:

SIP is a very effective way to build long-term wealth.

Your equity-debt-hybrid mix is acceptable for your age.

As you are young and unmarried, equity allocation can be a bit higher.

But make sure the equity funds are diversified, and not all are small/mid-cap.

Hybrid funds help to reduce volatility. Good for short to medium-term goals.

Debt fund allocation is small, but useful to keep liquidity and stability.

Suggestions:

Increase your SIP amount to Rs. 20,000 or more once chit ends in Nov 2025.

Review your MF schemes every 6 months with a Certified Financial Planner.

If you’re investing in direct mutual funds, please reconsider.

Why Regular Funds Through Certified Financial Planner are Better:

Regular funds come with guided support.

A Certified Financial Planner helps you manage risk and asset mix.

Direct funds offer no advice.

Without guidance, mistakes are common.

Wrong scheme choices can reduce returns.

Paying a small commission for long-term discipline and advice is worth it.

PPF Investment
Started in April 2024

Saved ~Rs. 2 lakh so far

Our Assessment:

PPF is a good low-risk savings product.

It gives tax-free interest and safe returns.

Useful for long-term goals like retirement or children’s education.

Lock-in is 15 years, so liquidity is low.

But the stability makes it a good balance to your equity investments.

Recommendation:

Continue investing in PPF every year.

Consider contributing Rs. 1.5 lakh per year if affordable.

Treat this as part of your debt allocation.

EPF and NPS Deductions
EPF: Rs. 18,000/month

NPS: Rs. 7,500/month

Assessment:

Both are mandatory and long-term focused.

EPF gives steady, tax-free interest.

NPS gives equity exposure with tax benefits.

Our View:

Continue both as they are salary linked.

NPS can be used as an additional retirement tool.

Do not rely solely on NPS for wealth building.

Equity mutual funds will help you build faster wealth.

Chit Fund Commitment
Paying Rs. 50,000/month till Nov 2025

Will receive ~Rs. 10 lakh at maturity

Our Analysis:

Chit funds are not safe or regulated like other investments.

Use chit funds only for liquidity, not long-term wealth creation.

Since you are already committed, continue till maturity.

What to Do with Rs. 10 Lakh?

Once you receive the maturity amount:

Keep Rs. 2–3 lakh as emergency fund in FD or liquid mutual fund.

Invest balance Rs. 7–8 lakh in mutual funds (mostly equity).

Allocate for medium/long-term goals.

Use regular plans through a Certified Financial Planner.

LIC Policy – Investment cum Insurance
Annual premium: Rs. 2 lakh

Tenure remaining: 15 years

Our Observation:

LIC traditional plans give very low returns.

Returns are 4% to 5% only, and locked-in.

Mixing insurance with investment is not efficient.

Real wealth creation needs better returns.

Suggestions:

Check if it is a traditional policy or ULIP.

If it is traditional or ULIP, consider surrendering it.

Use surrender value to invest in mutual funds.

Ensure you take proper term insurance first.

Insurance Cover – Provided by Employer
Health insurance: Rs. 5 lakh

Personal accident: Rs. 60 lakh

Term life insurance: Rs. 80 lakh

Important Insight:

Employer-provided policies are valid only till you are employed.

No control or portability.

Can stop anytime.

Not sufficient as standalone protection.

Term Insurance:

Rs. 80 lakh cover is decent for now.

But you need your own term insurance.

Take cover of at least 15–20 times your yearly income.

That’s Rs. 2 crore or more.

Premium is low if bought early.

Take term insurance only, not investment-linked.

Health Insurance:

Rs. 5 lakh cover is low.

If you leave job, you may be left uninsured.

Take separate individual or family floater plan.

Choose minimum Rs. 10 lakh cover.

Health costs are rising fast.

Buy now while you are young and healthy.

Upcoming Marriage Expenses
Marriage planned mid next year

Estimated expenses: Rs. 15 lakh

Suggestion:

Keep money in a safe, non-volatile place.

Use short-term debt mutual funds or fixed deposits.

Avoid equity for this goal.

Equity is risky for goals under 1 year.

If you don’t have full amount ready yet:

Start monthly RD or STP from liquid to short-term debt fund.

Use upcoming bonus or surplus to build corpus.

Other Suggestions for 360° Planning
Emergency Fund:

Keep 6 months of expenses as emergency fund

Include EMI + SIP + household costs

Use FD or liquid fund for this

Goals to Start Planning:

Retirement

Child education (once married)

Travel or sabbatical in future

Car or home upgrade if needed later

Investment Habits to Strengthen:

Set clear goals and match them with right investments

Don’t withdraw from investments for short-term needs

Don’t follow tips or friends for fund selection

Review portfolio once a year

Rebalance equity and debt allocation if it goes off track

Finally
You are doing many things right already

SIPs, PPF, EPF, NPS, and high savings rate are good signs

But a few gaps need fixing:

No personal insurance

LIC policy is not wealth-creating

Chit fund is not ideal

Direct mutual fund route can be risky without expert help

To move forward strongly:

Increase SIPs when chit ends

Build emergency and marriage fund separately

Take term and health insurance urgently

Exit poor-return products like LIC (after taking term cover)

Use regular mutual fund route with Certified Financial Planner

This way, you will move towards strong, stable wealth creation.
Life goals like marriage, family, and retirement can be achieved comfortably.
A 360° plan makes your future confident and clear.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 02, 2024Hindi
Money
I am 40-year-old Software Engineer with 1.9L pm in hand salary with 2 daughters, elder one is in 8th standard and younger in 2nd. WIfe is not working. Let me first tell you about my saving and investment: 1. I have loan free 3BHK flat in Noida and also a car.. No current EMI liability. 2. Around 32L in PF and counting.. 3. Around 23L in PPF (wife and own account) and counting.. 4. Around 14.5L in Sukanya for both the kids and counting... 5. Around 22.5L in FD 6. Around 16L in MF, share, Gold bond and counting.. 7. Last year only started investing in NPS, fund value is around 1.5L and counting.. 8. I have company provided health insurance only and personal term plan for 60L I am doing monthly investment of 50K in PF+Sukanya, 30K in MF , 20k in Share and 10% of basic in NPS. I have to ask: 1. Am I doing right investment considering needed funds for elder daughter's higher education (in 4 yrs from now) and then for marriage? 2. Am I saving wisely and enough month-on-month basis? 3. How to reach 5cr corpus by the age of 50? and is it enough if wanted to retire? 4. What else I need to do to save more and increase my portfolio? I have less risk appetite. Please suggest
Ans: Firstly, it’s impressive to see your disciplined approach towards saving and investing. Having a clear financial plan and taking proactive steps shows great financial acumen. Let’s evaluate your current financial status and provide suggestions to reach your goals.

You have a stable financial foundation with no loan liabilities, a solid mix of investments, and a focus on future goals. Your current assets and monthly investments are commendable.

Here’s a detailed analysis and suggestions tailored to your needs:

Analysis of Current Investments
Provident Fund (PF)
You have Rs 32 lakh in PF, which is a substantial amount. PF offers a stable and relatively safe return. It is a great way to secure your retirement.

Public Provident Fund (PPF)
With Rs 23 lakh in PPF, you are benefiting from tax-free returns and a safe investment vehicle. PPF is ideal for long-term goals like retirement due to its 15-year lock-in period.

Sukanya Samriddhi Yojana (SSY)
Investing Rs 14.5 lakh in Sukanya Samriddhi for your daughters is a wise decision. It offers good interest rates and tax benefits. This will help in funding their education and marriage.

Fixed Deposits (FD)
You have Rs 22.5 lakh in FDs. While FDs are safe, the returns are generally lower compared to other investment options. It's a good idea to keep some funds in FDs for emergencies, but diversifying might yield better returns.

Mutual Funds, Shares, and Gold Bonds
You have Rs 16 lakh invested in a mix of mutual funds, shares, and gold bonds. Diversification here is beneficial as it balances risk and returns. Continue this approach but review the performance regularly.

National Pension System (NPS)
Starting with Rs 1.5 lakh in NPS is good for building a retirement corpus. NPS offers tax benefits and the potential for higher returns due to its market-linked nature.

Insurance
You have a Rs 60 lakh term plan which is essential for your family’s security. However, consider increasing the coverage based on your family’s future financial needs.

Monthly Investment Analysis
You are investing Rs 50,000 in PF and Sukanya, Rs 30,000 in mutual funds, Rs 20,000 in shares, and 10% of your basic salary in NPS. This diversified approach is commendable, but let’s delve deeper into each aspect.

Evaluating Your Investment Strategy
Higher Education and Marriage of Elder Daughter
Your elder daughter’s higher education is a priority. With four years to go, you need to ensure sufficient funds. Sukanya Samriddhi and other investments should be assessed to meet this goal.

Monthly Savings Assessment
You are saving a significant amount monthly, which is excellent. However, it’s essential to ensure these savings align with your goals and risk tolerance.

Building a Rs 5 Crore Corpus by Age 50
Reaching a Rs 5 crore corpus in ten years requires strategic planning. Your current investments and returns need to be evaluated and optimized.

Suggestions to Enhance Your Financial Portfolio
Health Insurance
Relying solely on company-provided health insurance may not be sufficient. Consider purchasing a comprehensive personal health insurance plan. This ensures coverage even if you change jobs.

Increasing Term Insurance
Reevaluate your term insurance. Based on your current lifestyle and future needs, a higher coverage might be necessary.

Reviewing Mutual Fund Investments
Actively managed mutual funds can potentially yield higher returns compared to index funds. Ensure your mutual funds are well-chosen and periodically review their performance.

Share Investments
With a lower risk appetite, consider limiting direct investments in shares. Actively managed equity funds can offer exposure to equity markets with professional management.

Gold Bonds
Gold bonds are a good hedge against inflation. Continue investing but ensure it aligns with your overall asset allocation strategy.

NPS Contributions
Increasing your NPS contributions can be beneficial. It offers a mix of equity, corporate bonds, and government securities, balancing growth and safety.

Detailed Action Plan for Financial Goals
Higher Education for Daughter
Estimate the total cost of higher education, considering inflation. Review your current investments in Sukanya Samriddhi and other savings to ensure they meet this goal. If needed, redirect some investments towards education-focused funds or fixed-income securities.

Retirement Planning
To achieve a Rs 5 crore corpus by age 50:

Increase your investments in high-growth potential assets, such as actively managed equity funds.
Regularly review and rebalance your portfolio to stay on track with your goals.
Consider professional advice from a Certified Financial Planner for tailored strategies.
Emergency Fund
Maintain an emergency fund to cover at least six months of expenses. This should be in a liquid and safe investment like a savings account or short-term FD.

Enhancing Your Investment Portfolio
Avoiding Direct Funds
Direct mutual funds require active management and market knowledge. Regular funds, managed by professionals, can provide better returns with less effort on your part.

Diversifying Further
While you have a diversified portfolio, consider further diversification to mitigate risks. Explore options like balanced advantage funds which adjust between equity and debt based on market conditions.

Systematic Investment Plan (SIP)
Continue and potentially increase your SIP in mutual funds. This disciplined approach helps in averaging out market volatility and building wealth over time.

Tax Planning
Efficient tax planning can enhance your returns. Utilize tax-saving instruments under Section 80C, 80D, and 80CCD. This reduces tax liability and increases investable surplus.

Regular Review and Adjustment
Portfolio Review
Conduct a bi-annual review of your portfolio. Ensure your investments align with your financial goals and risk tolerance.

Adjusting Strategy
Based on market conditions and personal circumstances, be ready to adjust your investment strategy. This proactive approach helps in optimizing returns and minimizing risks.

Final Insights
You have a strong financial foundation and a disciplined approach towards saving and investing. By fine-tuning your strategy and focusing on your financial goals, you can achieve your targets.

Ensure adequate health and life insurance coverage for family security. Regularly review and adjust your portfolio to stay aligned with your goals.

Seek guidance from a Certified Financial Planner for personalized advice and strategies.

Your commitment to securing your family’s future is commendable. With careful planning and strategic investments, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 03, 2024

Money
Hi , I am 24 yrs old. My monthly income 28k in hand(total PF deductions 3600 (1800 + 1800) from both me and employer PM) and total PF amount till date 26000 and I had been doing SIP contributions (5000 thousand Per month) started last November 23. In Nov 24 I have increased it to 5500 PM. I have FD (50,000) as emergency fund . From next month my income will be increased to 32k. I have some questions related. 1. Should I increase my PF contribution ? or should I open a PPF/NPS account if yes then which one should I go for PPF or NPS ? 2.Planning to get married in next 3 years and need 15 lakhs for that . So how to plan for that? 3. This is a bit early but I need to ask that I would be planning to buy a house in next 20 yrs or 25 years . So should I start investing for it seperately or leave it as of now? 4. As my father is retired and mother house wife , we have a combined health insurance but no life insurance. My employer has provided me with both of them (life/health) . So should I buy a life insurance for me now or I can wait for another 2 to 3 years ? given that( I am fit as of now with no bad eating habbits) 5. Should I think of investing in gold like SGBs somewhere down the line? 6. For short- term investments which investment option is best like for 2 years or less ? 7. As my father is a senior citizen so I opt to have FDs in his account but the problem is he has account in two banks where in one account interest rates are more but it's not breakable online (Gramin Bank) and SBI(where Roi is a bit less but accessible and brekable online). Which one to prefer? 8. My father is having a PPF account is which is maturing next year Mar 25. Corpus almost 30lacs . Where should he invest it as he has a fear that if he invest it in SWP (all 30 ) then due to war's between europen countries the market can crash and he has this saving only. So how to invest this 30lacs ?? 9. In every six months I get some bonus cash from company so how to invest that? 10. How to increase the emergency fund like should I do FD every month or like every quarter or every six months? Plz guide me and suggest me a roadmap on how to move ahead with my investment journey.
Ans: Below is a step-by-step guide to address your queries and create a comprehensive financial roadmap.

1. Should You Increase Your PF Contribution or Open a PPF/NPS Account?
EPF Contribution: There is no harm in increasing your voluntary PF contribution. It provides tax savings and builds a solid retirement corpus with safe returns.

PPF or NPS:

PPF: Suitable if you prefer tax-free returns with safety and a fixed interest rate.
NPS: Good if you are comfortable with partial market exposure and disciplined for retirement planning.
Recommendation: If you are not yet focused on retirement, continue with the EPF for now. Consider PPF for additional tax-saving benefits.

2. Planning Rs 15 Lakhs for Marriage in 3 Years
Set Clear Goals: Start by estimating how much you can save monthly toward this goal.

Investment Options:

Invest Rs 20,000 per month in debt-oriented mutual funds or recurring deposits for stability.
Avoid equities as the horizon is short, and markets can fluctuate.
Utilize Fixed Deposits for lump-sum allocations if you receive bonuses.
Pro Tip: Monitor your goal regularly and adjust SIPs to meet the Rs 15 lakh target.

3. Should You Start Planning for a House Purchase Now?
House Goal Timeline: Since this is a 20-25 year goal, it’s better to wait. Your immediate focus should be marriage and emergency funds.

Long-Term Investment: Once other goals are on track, consider investing in diversified equity mutual funds. These have the potential to generate inflation-beating returns over decades.

4. Should You Buy Life Insurance Now?
Life Insurance Requirement: As you are unmarried and have no dependents, life insurance is not urgent.

Health Insurance: Stick with the employer-provided health insurance for now.

Action Plan: Purchase term life insurance only when you have financial dependents, such as a spouse or children. Ensure coverage of at least 10-15 times your annual income.

5. Should You Consider Investing in Gold?
Gold as an Investment: Gold should not exceed 5-10% of your portfolio. Use it as a diversification tool, not a primary investment.

SGBs (Sovereign Gold Bonds):

Ideal if you plan to hold for the long term.
They provide interest income and capital appreciation without physical storage hassles.
6. Best Short-Term Investment Options (2 Years or Less)
Fixed Deposits: Offer guaranteed returns and are suitable for short-term needs.

Liquid Mutual Funds: These are better than savings accounts and provide slightly higher returns with liquidity.

Recurring Deposits: Good for disciplined savings over the short term.

7. FD in Father’s Account: Gramin Bank or SBI?
Choose SBI FD: Although Gramin Bank offers higher interest, SBI provides online accessibility and convenience.

Reasoning: Accessibility is crucial, especially during emergencies or market volatility.

8. Where Should Your Father Invest Rs 30 Lakhs PPF Maturity?
Systematic Withdrawal Plan (SWP): A good option for monthly income with partial market exposure. However, diversify the amount to reduce risks.

Suggested Allocation:

Rs 10 lakhs: Invest in Senior Citizens Savings Scheme (SCSS) for safety and regular income.
Rs 10 lakhs: Opt for balanced advantage mutual funds for moderate growth.
Rs 10 lakhs: Keep in FDs for emergencies or short-term needs.
Pro Tip: Reassure your father that diversification minimizes risks. Avoid investing all in one instrument.

9. How to Invest Your Bonus?
Allocate Wisely:

50% toward goals like marriage or emergency fund.
30% toward long-term investments such as mutual funds.
20% for personal needs or contingencies.
Flexibility: Use the bonus to increase SIP contributions for long-term benefits.

10. Increasing Emergency Fund
Systematic Savings: Add Rs 5,000 monthly to a Fixed Deposit or Liquid Fund.

Flexible Frequency: Alternatively, allocate every quarter or six months based on bonuses or surpluses.

Target: Aim for at least six months’ worth of expenses as your emergency fund.

Additional Suggestions
Regular Mutual Fund Investments: Continue increasing SIPs as income grows. Opt for actively managed funds with proven track records.

Avoid Direct Funds: Direct funds require active monitoring and expertise. Invest through a Certified Financial Planner for better guidance.

Tax Planning: Use Section 80C to save tax through EPF, PPF, or ELSS funds.

Final Insights
You have taken the right steps by starting SIPs and creating an emergency fund. Focus on balancing short-term and long-term goals effectively. Diversify your investments and ensure risk management. Seek professional advice for complex decisions involving larger amounts.

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 Feb 27, 2025

Asked by Anonymous - Feb 10, 2025Hindi
Listen
Money
I am 27 years old as of now, earning 9 lac lpa . I live with my parents and my workplace is near my home just 7 kms away. I have started investing 30000 per month in Mutual funds, 40 percent in large cap 30 percent in mid cap 30 percent in small cap. Apart from this for liquidity purposes u have 2 recurring deposits of 10000 and rs 5000 each. 500 So my total monthly savings are 45k The sip amount of 30000 is something that will keep om increasing by 10-15 percent every year. I plan on creating corpus of 1 CR in next 10 years at an expected CAGR of 12 percent . Currently im a Batchelor with no expenses . (As my dad is a business man and a pensioner too being an ex service man from defense sector. Moreover my mother is govt teacher so she also has her finances sorted out. Any advice on this financial plan? I plan on owning a housing at nearly 40 years of age. Also i plan on leaving my job in 30s creating a passive income source and maybe helping my dad in his business or running my own business. I want to work at my own will and be my own boss so that i can work stress free and have sufficient time for my family and also my passions such as travelling the world.
Ans: Hello;

You may hold ~10% of your portfolio in the form of gold fund/ETFs for diversification and risk mitigation.

Also do annual review of your funds vis-a-vis category average and benchmark for risks and returns.

Buy an adequate term life insurance cover for yourself.

Rest looks quite good.

Ensure steady passive income source and own house before you get into business.

All the best for your business endeavours.

Best wishes;

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

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

Asked by Anonymous - May 25, 2025Hindi
Money
Hello I am 31 years of age and no debt on me. I am married and my wife is a housemaker and I have no child now but planning to have. Currently after all my expenses (including travel, medical insurance etc) and keeping few additional for any contingency I am able to save money/month in following forms. PF: 40000 (including VPF, Employee and Employers Contribution) PPF: 12500 SIP: 53000 (33% distribution across large, mid and small cap. 10% stepup annually) LIC: 6500 (endowmennt policy for 25 years) FD: 70000 Gold: 35000 (in jewellery scheme) My current savings across above mentioned portfolio is around 75 lacs (FD: 25 lacs, Gold: 15 lacs, MF: 10 lacs, PF: 10 lacs, EPF: 15 lacs) I dont have my personal home and I am not considering to buy any as my parent's home is sufficient enough for me to live. I am a moderate risk taker and want to enjoy life considerably reasonably throughout. Want to save good amount for future uncertainty, child education, travel and hospitalization. Could you please assess my savings and let me know whether any changes needed?
Ans: I will assess your financial situation carefully and provide insights that cover all important angles. This will help you plan better for your future, including child education, travel, and medical needs.

                     

Current Savings Portfolio – Analyzing Strengths

Your savings of Rs. 75 lakhs across various instruments show strong discipline.

Regular PF contributions of Rs. 40,000/month reflect good retirement planning.

PPF savings add safe, long-term tax-free growth to your portfolio.

SIP investments of Rs. 53,000/month spread across large, mid, and small caps show equity exposure.

The 10% annual step-up in SIP shows you want to increase investments steadily.

FD holdings of Rs. 25 lakhs provide stable and safe fixed income.

Gold worth Rs. 15 lakhs, mainly jewellery scheme, adds portfolio diversification.

LIC endowment policy contributions of Rs. 6,500 monthly add insurance and savings combined.

Your mix shows a good balance between safety, growth, and liquidity.

                     

Areas to Review for Better Alignment

Endowment policies generally offer lower returns compared to mutual funds.

LIC endowment policy ties up money for long duration with less flexibility.

You should consider surrendering LIC endowment policy and reinvesting in mutual funds.

Actively managed mutual funds through MFDs offer better returns than direct plans.

Your SIP allocation across large, mid, and small caps is good but must be monitored regularly.

Moderate risk profile means balance equity with debt or hybrid funds to reduce volatility.

FDs provide safety but weigh against inflation risk which reduces real returns.

Gold in jewellery form has low liquidity and incurs making charges.

Consider investing gold in paper form or sovereign gold bonds for better returns and liquidity.

                     

Suggested Portfolio Adjustments for Growth and Safety

Replace LIC endowment policy with a well-diversified equity and balanced fund portfolio.

Increase allocation in hybrid mutual funds to reduce overall portfolio volatility.

Maintain around 30-40% in safer debt or balanced funds due to moderate risk appetite.

Continue SIPs with gradual increase but review fund performance every 6 months.

Consider liquid funds or short-term debt funds for contingency corpus.

Reallocate some FD money into better-performing debt funds with tax efficiency.

Switch gold jewellery exposure to financial gold instruments to reduce costs and improve returns.

Build an emergency fund equivalent to 6-12 months of expenses in liquid assets.

                     

Child Education and Future Expenses Planning

Education costs are rising rapidly; early planning helps manage inflation impact.

Start a dedicated education fund through balanced or equity mutual funds.

Systematic Investment Plans with annual step-ups are ideal for long-term goals.

Consider increasing SIP amounts as your income grows to build a larger corpus.

Maintain flexibility to adjust investments if family needs or market conditions change.

Insurance cover for family’s health and life should be adequate to secure child’s future.

                     

Travel and Lifestyle Expenses Consideration

Allocate a reasonable portion of savings for lifestyle enjoyment without hampering goals.

Systematic withdrawals from balanced funds can fund travel and leisure expenses periodically.

Ensure that lifestyle spends do not disrupt emergency savings or long-term investments.

Keep travel funds separate from core investment corpus to avoid forced liquidations.

                     

Medical and Health Insurance Analysis

You have accounted for medical insurance; review the sum insured periodically.

Consider increasing health cover especially with plans for children.

Allocate funds for critical illness or medical emergencies outside insurance coverage.

Maintain liquid investments like short-term debt funds to meet sudden medical expenses.

Health emergencies can impact finances heavily; planning liquidity is critical.

                     

Tax Efficiency and Investment Management

Your PF and PPF contributions offer good tax saving and long-term compounding.

Mutual funds should be chosen with tax efficiency in mind.

Avoid frequent switching to reduce short-term capital gains tax impact.

Active fund management by MFDs can help you select tax-efficient funds.

Regular review and rebalancing help you align with tax and investment goals.

Stay aware of LTCG tax at 12.5% above Rs. 1.25 lakh on equity funds.

                     

Role of Professional Guidance and Regular Review

A Certified Financial Planner can help you optimize asset allocation.

Expert guidance prevents emotional decisions during market fluctuations.

Regular portfolio review every 6-12 months ensures alignment with changing goals.

MFDs offering regular plans help manage investments actively and monitor performance.

Avoid self-managed direct plans without professional help to reduce risks.

Active fund managers adapt to market changes better than passive index funds.

Index funds do not suit moderate risk takers who need professional intervention.

                     

360-Degree Solution Summary

Your portfolio shows good discipline and a fair mix of assets.

Shift away from LIC endowment policy to better growth instruments.

Increase allocation to balanced and debt funds for risk moderation.

Convert gold jewellery to financial gold for liquidity and cost efficiency.

Maintain emergency fund in liquid instruments to meet unforeseen expenses.

Plan for child education with increasing SIPs in diversified equity funds.

Keep lifestyle and travel funds separate to avoid disturbing long-term goals.

Ensure adequate health insurance and liquidity for medical contingencies.

Use CFP support for portfolio review, rebalancing, and tax planning.

Avoid direct and index funds; prefer regular funds through MFD with CFP guidance.

                     

Final Insights

Your current savings are solid but can be optimized for better growth and safety.

Transition from traditional endowment plans to actively managed mutual funds.

Diversify across equity, balanced, debt, and financial gold instruments.

Regular SIPs with planned step-ups are good but monitor fund performance closely.

Maintain liquid funds and insurance coverage for emergency protection.

A disciplined, reviewed, and balanced portfolio suits your moderate risk profile.

Professional guidance from a Certified Financial Planner is key to success.

This approach balances growth, safety, lifestyle enjoyment, and future needs well.

                     

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Asked by Anonymous - Jun 22, 2025Hindi
Money
Hello Sir, I am 48-years old, single woman working with Central Government. My monthly salary is 1,35,000. I have no pending loans. My investments are 25,000 in stock market, monthly SIP of 15,500. Invested in the following mutual funds since 2017: 1) DSP BlackRock Top 100 Equity Fund-Rs 500 2) HDFC Credit risk debt Fund-Rs 500 3) ICICI Prudential MidCap Fund-Rs 1000 4) SBI Flexicap Fund-Rs 500. Since Jan 2025 I have additionally invested in 1) SBI Nifty Index fund- Rs 2000 2) SBI Flexicap fund- Rs 5000 3) Nippon India Nifty Small cap 250 Index fund-Rs 2000 4) Motilal Oswal Midcap fund-Rs 2000 5) Motilal Oswal gold and silver ETFs Fund of funds-Rs 2000. A lumpsum amount of Rs 40000 has been invested in Tata large and mid cap fund regular plan (since 2003). I have 17 lakhs in PPF (contribution of 1,50,000/year), monthly rental income of 14,500, 8 lakhs in FD, 50000 contribution every year in NPS (Tier 1). My monthly expenses are around 40-50000 per month. Should I invest in NPS Tier 2 too? Is my investment in mutual funds right? Should I invest more in them and which ones? I have 16 lakhs in my savings account wherein I want to keep 5-6 lakhs as emergency funds and invest the rest. How should I go about it? Since the Government covers me for health scheme, I have taken no medical insurance. My future plans are to buy a house 5-6 years before retirement (sell the present one) and to have a comfortable retired life. Kindly suggest.
Ans: You have a stable government job and regular salary.

Monthly salary of Rs 1,35,000 is a good base.

No loans means strong financial health.

Monthly expenses are moderate, around Rs 40,000 to Rs 50,000.

This gives good surplus each month for investment.

You also earn Rs 14,500 as rental income.

It adds stability to your cash flow.

You already have Rs 16 lakhs in savings bank account.

Rs 8 lakhs is in FD.

Rs 17 lakhs in PPF is a strong tax-saving foundation.

NPS Tier 1 contribution of Rs 50,000 is tax efficient.

You are already doing many things right.

Emergency Fund and Liquidity Planning

You want to keep Rs 5-6 lakhs as emergency fund.

This is appropriate for your lifestyle.

Keep it in liquid or ultra-short term fund.

Avoid keeping too much in savings bank.

Rs 10 lakhs idle in bank is underperforming.

That money should earn more returns.

Do not lock entire amount in FD.

Keep part of it accessible in case of need.

Review of Current Mutual Fund Portfolio

You have invested in both active and index funds.

Older holdings:

Equity large-cap, mid-cap, flexicap are good for long term.

One credit risk fund is not needed now.

Credit risk category carries default risk.

Can exit gradually with support from MFD.

Recent SIPs include:

Multiple index funds and ETFs.

Smallcap and midcap exposure is high.

One fund of fund on gold and silver.

These need refinement.
Here are the observations:

Overlap across funds may lead to inefficiency.

Exposure to index funds brings limitations.

Index funds copy the market, give average returns.

No flexibility for active management during downturns.

They fail to capture superior opportunities.

Tracking error and sector weight imbalance are concerns.

During market corrections, they fall equally hard.

They work only in very long term, with patience.

Instead:

Active funds are managed by professionals.

They adjust portfolio based on market signals.

This helps reduce risk and increase potential gains.

MFD with CFP support will guide timely changes.

A few good active funds with long track record is better.

Regular review improves performance and control.

Gold and silver fund of fund:

Good as hedge, but not core holding.

Avoid making it more than 5% of portfolio.

Long-term return from gold is average.

Silver is more volatile.

Use for diversification, not wealth creation.

Direct funds are not mentioned.
But if you plan to switch in future:

Avoid direct mutual funds.

No advisor support for fund management.

You may miss rebalancing, exit points.

Regular plans via MFD give lifelong handholding.

Certified Financial Planner brings structured asset allocation.

Returns can be better after fees when decisions are guided.

Asset Allocation Strategy

You need balanced exposure across asset classes.

Here is a better structure:

Equity: Around 55-60%

Debt: Around 20-25%

PPF + NPS: Around 15-20%

Gold + silver: Around 5%

FD or Liquid fund: Emergency only

You can build core with 3-4 quality active equity funds:

One flexicap

One large and mid-cap

One midcap

One balanced advantage or hybrid

Add one conservative debt fund for stability.
Use MFD help to switch from overlapping or weak funds.

Avoid small SIPs in many funds.
Instead, consolidate into fewer focused funds.
Increase SIP amount where funds are performing.
Avoid frequent fund changes.
Follow 3+ year holding mindset.

Review of SIP Strategy

Current SIP of Rs 15,500 is good.
You can increase it now with available surplus.
You have capacity to increase it to Rs 25,000 to Rs 30,000 per month.
This will improve retirement corpus in next 10-12 years.
Avoid adding new schemes unless needed.
Use existing good performers and top them up.
Track fund returns every 6 months.
Exit underperformers in consultation with your MFD.

PPF and NPS Investment

PPF:

You contribute Rs 1.5 lakhs per year.

It is tax-free and safe.

Good for retirement planning.

Keep contributing till maturity.

Keep nomination updated.

NPS Tier 1:

Rs 50,000 per year is helpful for tax saving.

It is long term and low cost.

Exposure to equity can be adjusted.

Leave it as it is till 60.

NPS Tier 2:

Not recommended.

No tax benefit.

Lock-in flexibility is poor.

Better to use mutual funds instead.

SIPs in mutual funds are more liquid and transparent.

Your Housing Plan and Asset Liquidity

You want to buy a house after 5-6 years.
You also want to sell current one.
This is fine if it is need-based.
But don’t treat house as investment.
Don’t use too much of savings for it.
Try not to compromise on retirement fund.
Ensure liquidity and diversification stay intact.
Home buying should not disturb your financial independence.

Medical Coverage Planning

You are covered under government health scheme.
But personal health insurance is still advised.
Post-retirement, coverage may be limited or slow.
Private health cover will protect savings later.
Get Rs 10-15 lakh coverage with top-up now.
Premium is lower when taken earlier.
This helps in faster hospital support and wider coverage.
Medical cost is increasing every year.

Taxation on Mutual Fund Gains

Equity fund tax changed recently.

LTCG above Rs 1.25 lakh is taxed at 12.5%.

Short-term capital gains are taxed at 20%.

For debt funds, all gains taxed at slab rate.

There is no indexation on debt anymore.

Plan redemptions smartly.
Use MFD support to plan gains in phases.
This avoids high tax in one year.
Avoid frequent buying and selling.
Stay invested for 3 years minimum in equity funds.

Recommendations for Rs 10 Lakh Surplus

From your Rs 16 lakh savings:

Rs 5-6 lakh to remain as emergency fund.

Use liquid fund or ultra-short duration fund.

FD gives low returns and poor liquidity.

Remaining Rs 10 lakh:

Invest Rs 5-6 lakh in 2-3 equity mutual funds.

Add Rs 2 lakh in hybrid or balanced advantage fund.

Keep Rs 1-2 lakh in debt mutual fund.

Spread lump sum over 3-6 months using STP.

Start new SIP or top-up existing funds.

This will ensure diversification and long-term growth.
Also keep Rs 50,000 as buffer for unplanned needs.
Do not invest full lump sum at once.
Gradual investment reduces market risk.

Estate and Nomination Planning

Please check nomination in:

Bank accounts

PPF

NPS

Mutual funds

Insurance policies

Property documents

Single women need to define beneficiaries clearly.
This avoids disputes and delays.
Make a simple Will if not yet done.
Update regularly if your assets or preferences change.

Retirement Readiness and Lifestyle Funding

You are 48 now.
Retirement may come in 10-12 years.
So next decade is crucial for wealth building.
Your current savings are good, but need boost.
You should focus more on:

SIP increase

Fund performance review

Asset rebalancing every year

Retirement goal tracking

Medical support planning

Liquidity and taxation planning

Avoid risky trends or aggressive products.
Consistency and guidance from a CFP-backed MFD matters.
Have annual review and track against your target corpus.
Target corpus should provide post-retirement monthly income.
Adjust corpus for inflation and medical inflation.

Finally

You are on a good path financially.

Your savings, SIPs and discipline are appreciable.

Need to optimise investments and reduce fund overlap.

Avoid index funds due to their limitations.

Active mutual funds with guidance offer better outcomes.

NPS Tier 2 is not recommended.

Medical cover is must, even if covered by employer.

Use MFD support with CFP backing for portfolio review.

Build a clear plan for retirement corpus.

Invest Rs 10 lakh idle money with asset allocation.

Track progress every year with expert help.

You deserve a comfortable and worry-free retired life.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Latest Questions
Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
Career
Hi, my son has secured an admission in a 2+2 BITS CSE program 2025 at Hyderabad (first 2 years) and Iowa state univ (for next 2 years). Under DASA he can potentially get AI at NITK or ECE at NIT Trichy or CSE in NITW (his CRL rank is 25200). Can you please advise and provide recommendations on what we can choose and reasons? We know 2+2 ISU program is more expensive compared to NIT DASA fees but is it worth the money vis-a-vis doing a B.Tech at NIT and doing a masters in US later? For this rank, what can he get at the said NITs under DASA?
Ans: The BITS Pilani–Iowa State University 2+2 CSE offers two years at BITS Hyderabad (ACM-aligned curriculum, NAAC A++ accreditation, state-of-the-art AI, data-science and cloud labs) followed by two years at Iowa State University (top-50 US engineering program, immersive B.S. in Computer Engineering, ISU merit scholarships up to US $4,500/year). Total direct tuition and campus fees for BITS Hyderabad amount to approximately ?10.5 L per year, while Iowa State tuition exceeds US $33,000 annually, plus living expenses. Graduates earn dual degrees with global brand recognition and typically secure near-100% placement through BITS’s 200+ recruiter network and ISU’s strong career services, commanding premium compensation packages in software, data science and R&D roles.

Under DASA with an All-India CRL of 25,200, he qualifies for: B.Tech AI at NIT Surathkal (AI cutoff: 26,688); B.Tech ECE at NIT Trichy (ECE cutoff: 66,706); and B.Tech CSE at NIT Warangal (CSE cutoff: 46,935). Each NIT features NBA accreditation, experienced PhD faculty, modern labs and strong industry MoUs. NITK AI and NITW CSE boast placement rates above 80% and growing AI/analytics recruitment pipelines, while NIT Trichy ECE records near-75% core-sector placements. Annual DASA fees at NITs range from US $15,000–18,000, significantly lower than BITS-ISU costs, with comparable scholarship opportunities limited.

Balancing long-term ROI, the BITS 2+2 path accelerates global exposure, dual-degree credentials and premium placements at higher upfront cost. A B.Tech at NIT followed by a US master’s entails lower initial investment, robust core engineering training and the flexibility to self-fund graduate studies through campus placements or scholarships.

Recommendation: Opt for BITS 2+2 CSE if you prioritise world-class international exposure, dual degrees and, top-tier placement networks despite higher fees. Choose a DASA seat at NIT (AI at NITK or CSE at NITW) for cost-effective core engineering training with solid placement and later pursue a US master’s via merit scholarships. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Career
Best option in iiit hyderabad for better placement and early internship in btech and dual degree for course cse with speclization ai ml
Ans: Dipanshu, IIIT Hyderabad’s B.Tech in CSE offers an ACM-aligned curriculum covering algorithms, systems, AI/ML, data science and electives in computer vision and NLP, delivered through state-of-the-art AI, cloud-computing and robotics labs. A 12-credit Practice School internship begins in the fifth semester, supported by a proactive placement cell and corporate mentoring, yielding a 99% placement rate for BTech CSE with an average package of ?31.98 LPA over the past three years. Faculty include PhD-qualified researchers with strong industry collaborations, and accredited NAAC A++ status underpins academic quality. The five-year dual-degree integrates the BTech foundation with a research-oriented MS by Research, immersing students in advanced AI/ML theory, thesis work under DST/CSIR grants, and early research assistantships via centres like Kohli Center on Intelligent Systems. Dual-degree cohorts see 100% MS placement at an average of ?26.46 LPA, and graduates often secure RA internships and stipends of ?20,000–?50,000 monthly through lab-based projects. Both paths benefit from IIIT-H’s industry MoUs, interdisciplinary innovation hubs and global recruiter network, yet differ in academic depth, time-to-degree and placement profiles.

Recommendation: Opt for the BTech CSE for its higher average placement packages, structured Practice School internships from year three and broader recruiter diversity. Choose the dual degree if you seek early research immersion, advanced AI/ML specialization, funded thesis work and a stronger pathway into academia or R&D roles. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Career
My son got admission in KCG college chennai with CSE. Now we got CSE in Amrita Chennai. My concern that Amrita chennai feeswise more than double comes to around 18 laks whereas KCG 8 laks overall Kindly suggest which one is good. Amrita is over burden for me. Still considering my son career I am ready to take loan or something to manage. Kindly suggest which one is goo
Ans: Raj Sir, KCG College of Technology, affiliated to Anna University and AICTE-approved, holds NAAC A+ and NBA accreditation for its CSE programme, a centrally located 50-acre campus with 140+ virtual and physical labs, including specialized AI, cloud and programming facilities. Its dedicated placement cell reported an 88%–94% placement rate over the past three years, with an average package of ?5 LPA and top recruiters such as Accenture, Cognizant, IBM and Amazon. Total tuition fees amount to approximately ?2 lakhs for the entire B.E. course.

Amrita School of Engineering Chennai, a constituent of Amrita Vishwa Vidyapeetham (NAAC A++), operates a 13.5-acre hill-campus with state-of-the-art AI, data-science, cybersecurity and cloud labs, and a strong industry-university research ecosystem. Its CSE graduates achieved a 90%+ placement consistency in 2024, with an average package of ?9.2 LPA and participation from 300+ recruiters including TCS, Wipro, Accenture and Amazon. Total tuition fees for B.Tech CSE are ?18 lakhs over four years.

Academically, KCG offers a robust ACM-aligned curriculum and extensive virtual-lab access, whereas Amrita provides a research-driven, choice-based credit system, extensive centers of excellence, and global collaborations. Both institutions maintain active MoUs and experienced Ph.D. faculty, but Amrita’s higher spend yields stronger median placements and broader recruiter reach.

Recommendation: Opt for Amrita Chennai CSE if investment is feasible, to leverage its superior placement outcomes, advanced research infrastructure and extensive industry linkages. Choose KCG College CSE for an accredited curriculum with solid placement consistency at a significantly lower cost, preserving financial flexibility. MY SUGGESTION: Finalise KCG and advise your son to keep upgrading his skills during the next 4 years, build a strong & professional LinkedIn Profile, improve his soft skills etc., to be competitive among other students for campus placement. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
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