Hello.... My take home salary is around 1.30 lpm.... I have recently started SIPs for about 25k across 4 funds (grossing about 3lakhs and SGB of about 3 lakhs as of now).... I have a land worth 40 lakhs (No ost loan)... A house worth 80lk out of which 45 lk is on loan... Apart from this I have about 9 lk savings (Invested across FDs and SB). I want to invest about 20k-25k monthly other than SIPs. Could you please advice where should I be investing?

Ans: You have done a great job building a strong foundation. A take-home salary of around Rs 1.30 lakh per month and disciplined SIPs of Rs 25,000 show your clarity and commitment. You already hold a diversified base—mutual funds, SGBs, FDs, and property. This is a solid start toward long-term wealth creation.

Your intention to invest another Rs 20,000–25,000 every month is wise. It shows you are serious about growing your money strategically. Let’s assess your current setup and plan where the next rupee should go for balanced growth and safety.

» Understanding your current financial picture
Your portfolio already reflects a good asset spread. You have:
– Mutual funds worth around Rs 3 lakh through SIPs.
– Sovereign Gold Bonds worth Rs 3 lakh.
– Land valued at Rs 40 lakh.
– A self-occupied house worth Rs 80 lakh (with Rs 45 lakh loan).
– Bank and FD savings of around Rs 9 lakh.

This indicates strong asset creation in both real and financial forms. However, most of your net worth is in illiquid assets like land and house. So, your next set of investments should focus on liquidity, flexibility, and growth.

» Importance of building liquidity before adding risk
Many investors skip building adequate liquidity. You already have Rs 9 lakh in FDs and savings. That’s positive. Still, ensure you maintain at least six months of your expenses in a liquid fund or savings account.

This gives you flexibility and protects your mutual funds during emergencies. Once you’re confident about liquidity, you can move the rest toward wealth-building instruments.

» Evaluating your debt situation and cash flow
Your home loan is Rs 45 lakh. The EMI is likely a significant monthly outflow. If your interest rate is high, partial prepayment every 2–3 years can save you huge interest. But don’t rush to close the loan fully. Balancing between investments and partial loan reduction gives better flexibility.

Debt repayment is risk-free return, but equity investments create long-term wealth. Keeping both in balance is the smart path.

» Setting clear goals before choosing investments
Before deciding where to invest the extra Rs 20,000–25,000 per month, think about your goals. Each rupee should have a purpose.

Ask yourself:
– Are you investing for early retirement?
– Children’s higher education or marriage?
– Financial freedom or passive income?

When each goal has a time frame, the right asset allocation becomes clear.

» Ideal direction for your new monthly investments
Since you already have SIPs of Rs 25,000 running, adding another Rs 20,000–25,000 should be diversified further but not scattered. Avoid adding too many schemes. Instead, strengthen existing categories.

Here’s a structured approach:

– Around 40% (Rs 8,000–10,000) into long-term equity mutual funds for wealth creation.
– Around 30% (Rs 6,000–7,000) into hybrid or balanced advantage mutual funds for stability.
– Around 20% (Rs 4,000–5,000) into short-term debt or liquid funds for medium-term goals.
– Around 10% (Rs 2,000–3,000) into SGB or gold funds for diversification.

This balanced approach covers growth, stability, and liquidity.

» Why continuing with actively managed mutual funds is better
Many investors get attracted to index funds or ETFs because of low costs. But index funds simply copy the market and cannot protect during downturns. They rise and fall with the index, offering no flexibility.

Actively managed funds have professional managers who can shift across sectors and stocks. This flexibility helps manage risks and improve returns over time.

So, continue with actively managed diversified equity mutual funds through your Certified Financial Planner. This path ensures ongoing review and professional guidance.

» Why to prefer regular mutual funds through CFP channel
Direct mutual funds look cheaper but lack expert review and emotional discipline. Most investors in direct plans make unplanned redemptions, reducing their long-term gains.

Regular mutual funds through a Certified Financial Planner come with periodic reviews, risk assessment, and rebalancing support. This personalized guidance helps avoid mistakes and ensures long-term growth.

The small distribution cost is worth the professional monitoring you receive.

» Evaluating your gold exposure through SGB
Your SGB holdings of Rs 3 lakh already provide diversification. Gold acts as a hedge against inflation and market volatility. However, don’t overinvest in gold. Keeping around 10–15% in gold is ideal.

Avoid adding more unless your portfolio equity portion grows much larger. Gold is for protection, not high growth.

» Strengthening your debt portfolio
Debt funds provide stability and predictable returns. Instead of keeping all money in FDs, start using short-term debt or ultra-short-term mutual funds. They are more tax-efficient and flexible.

Since FDs interest is taxed at your slab rate, shifting part of it to mutual fund debt category can save tax and improve liquidity. For short-term goals (less than 3 years), such funds are excellent.

» Creating a core and satellite investment structure
To simplify decisions, divide your portfolio into two parts:

– Core portfolio: Stable, long-term investments like diversified equity mutual funds, hybrid funds, and SGBs. These are for wealth creation.
– Satellite portfolio: Flexible investments like short-term debt funds, liquid funds, or special opportunity funds. These are for tactical moves or short-term goals.

This helps balance long-term growth and short-term flexibility.

» How to plan for your home loan
Since you already have a house loan, compare the loan rate with expected investment return. If the rate is below 9%, continue regular EMIs and let investments grow. If it is above 9%, partial prepayment using annual bonuses can be considered.

However, don’t divert all your surplus only toward loan closure. Wealth grows faster when you invest early and let compounding work.

» Importance of having proper insurance cover
Before increasing your investments, ensure your protection foundation is solid.
You should have:
– Term life insurance covering at least 12–15 times your annual income.
– Comprehensive health insurance for the family (beyond employer cover).

Insurance is a shield that prevents wealth erosion. It supports your family and ensures your investments stay intact.

» How to invest your additional Rs 20,000–25,000 systematically
Instead of investing a lump sum every few months, start a monthly SIP for this amount. This brings discipline and rupee cost averaging.

If you prefer flexibility, divide into:
– Rs 10,000–12,000 SIP in equity mutual funds (growth focus).
– Rs 6,000–8,000 SIP in hybrid funds (stability focus).
– Rs 4,000–5,000 SIP in short-term or liquid funds (liquidity focus).

This gives you growth, balance, and accessibility all together.

» Importance of goal mapping and review
Once you start new SIPs, track them with your Certified Financial Planner annually. Every 12 months, review performance, rebalance asset allocation, and match it to your goals.

This ongoing assessment ensures you stay aligned with your financial plan even when markets fluctuate.

» Avoid mixing insurance and investment
If you hold any LIC endowment, ULIP, or investment-linked insurance plans, review them. They usually give low returns and high charges.

Surrendering such policies (if suitable) and redirecting that money into mutual funds can improve your returns significantly. Pure term insurance plus separate investment is always more effective.

» Tax efficiency and planning
Always keep taxation in mind while planning your investments.
– Equity mutual fund LTCG above Rs 1.25 lakh in a year is taxed at 12.5%.
– STCG is taxed at 20%.
– Debt mutual fund gains are taxed as per your slab.

This makes mutual funds more tax-efficient than FDs or recurring deposits. Over long periods, this difference compounds greatly.

» Emergency fund and short-term reserves
You already have Rs 9 lakh in FDs and savings. Keep at least 6–12 months’ expenses aside. If you are married, cover your spouse’s health and future cash flow too.

Avoid mixing emergency funds with long-term investments. Liquidity gives peace of mind during uncertain times.

» Behavioural discipline during market volatility
Market ups and downs are normal. Don’t stop SIPs or withdraw out of fear. Continue investments even during corrections. That’s when you buy more units at lower prices.

Your patience and discipline are your biggest assets in wealth creation.

» Power of compounding through time
You are in your peak earning years. The next 15–20 years are crucial. If you keep investing Rs 45,000–50,000 every month consistently, you can build massive wealth by retirement.

Compounding needs time and consistency. Avoid frequent changes. Stay invested with long-term commitment.

» Why a Certified Financial Planner adds value
A Certified Financial Planner helps you design a 360-degree plan covering cash flow, risk cover, tax, retirement, and investments.

They review your portfolio annually, align it with life goals, and ensure balanced risk exposure. They also bring behavioural discipline, which often makes the biggest difference.

» Finally
You have made a strong start with your investments, real estate, and savings. The next step is to structure your new Rs 20,000–25,000 per month in a well-diversified way.

– Continue your existing SIPs in actively managed mutual funds.
– Add new SIPs in hybrid and short-term funds for balance.
– Maintain liquidity through emergency reserves.
– Strengthen insurance and protection cover.
– Review annually with a Certified Financial Planner.

This 360-degree approach will bring steady growth, financial security, and long-term freedom. You are on the right track. Continue your discipline and let time and compounding do their magic.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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