how to go about the superanation fund of 18 lacs how to use safely for life time

Ans: Hi Abhisheke, thanks for writing to me. To create a corpus of Rs.40 Lakh 8 years, you need to invest Rs.25,000 every month.

You can begin SIP's in:
1-Edelweiss NIFTY 100 Quality 30 Index Fund-Rs.5,000
2-UTI NIFTY 50 Index Fund-Rs.5,000
3-Axis ESG Fund-Rs.5,000
4-SBI Focused Equity Fund-Rs.5,000
5-DSP Quant Fund-Rs.5,000

Stepping up your SIP's every year by 10% or more will help you create build your corpus faster.

Ans: Please don't go for readymade pension policies. Poor returns and not tax efficient.

Ans: You want to invest this amount for how many years

Ans: First, congratulations on your savings and recent inheritance. Managing a significant sum can be overwhelming, but with proper planning, you can achieve your financial goals.

You have 6 lakhs in the National Pension System (NPS) and a fixed deposit of 5 lakhs. These are good starting points.

You save around 1-2 lakhs annually, showing your commitment to building your financial future.

Evaluating Your Retirement Goal
You aim to retire by age 45 with a corpus of 3 crores. This is an ambitious yet achievable goal with disciplined investing.

Given your current age of 35, you have a 10-year horizon to build this corpus. Strategic investments are key to reaching this target.

Deployment of Inherited Funds
With 40 lakhs recently inherited, strategic allocation is essential. Here’s how you can deploy this fund:

Emergency Fund
Firstly, set aside a portion for emergencies. Having 6-12 months' worth of expenses in a liquid instrument is prudent.

Debt Instruments
A part of your funds should go into safe, debt instruments. This provides stability and ensures some safety net.

Actively Managed Equity Funds
Equity funds, especially actively managed ones, can potentially offer higher returns. They can outperform the market through strategic stock selection.

Hybrid Funds
Hybrid funds, which mix equity and debt, provide a balanced approach. They reduce risk while offering growth potential.

Diversified Portfolio
Ensure your portfolio is diversified across different sectors and asset classes. This reduces risk and improves potential returns.

Regular Investments and SIPs
Continue with your annual savings of 1-2 lakhs. Investing this regularly through Systematic Investment Plans (SIPs) can benefit from rupee cost averaging.

SIPs in diversified equity and hybrid funds can provide consistent growth and reduce market volatility impact.

Importance of Active Fund Management
Actively managed funds have professional managers aiming to outperform the market. Unlike index funds, they can adapt to market changes and select high-potential stocks.

This active management can lead to better returns over time, aligning with your goal of a 3-crore corpus.

Professional Guidance
Consulting a Certified Financial Planner (CFP) can provide tailored advice. A CFP can help you select suitable funds, monitor your portfolio, and make adjustments as needed.

Investing through a CFP ensures you benefit from expert guidance, crucial for achieving long-term goals.

Disadvantages of Index Funds
Index funds, while low-cost, simply replicate an index. They lack the flexibility to react to market conditions and can't outperform the index.

Actively managed funds, however, strive for better returns through strategic decisions and active asset allocation.

Reviewing and Rebalancing
Regularly review your portfolio to ensure it aligns with your goals. Market conditions change, and periodic rebalancing is essential.

A diversified portfolio with active management and regular reviews can help you stay on track to achieve your retirement goal.

Conclusion
With disciplined investing and strategic allocation of your inherited funds, retiring with a corpus of 3 crores by age 45 is possible.

Focus on a balanced and actively managed portfolio, and seek professional guidance for the best outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have Rs 10 lakh maturing from one of your policies, and you're looking for reinvestment options. Let's explore the best ways to reinvest this amount to ensure optimal growth and financial security.

Understanding Your Financial Goals
Firstly, let's revisit your financial goals. You've mentioned wanting to accumulate a corpus of Rs 3 crore and securing enough funds for your two daughters' education and marriage. This means we need to focus on investments that offer good returns while also providing some stability.

Diversifying Your Investments
Diversification is crucial for balancing risk and reward. By spreading your investments across different asset classes, you can potentially earn higher returns while minimizing risk. Here are some key areas to consider:

Mutual Funds
Mutual funds are a great way to diversify your portfolio. They offer professional management and the ability to invest in a wide range of securities. Opt for actively managed funds rather than index funds. Actively managed funds have the potential to outperform the market because of the fund manager’s expertise.

You can start with a mix of equity and debt funds. Equity funds can provide higher returns over the long term, while debt funds can offer stability. A certified financial planner can help you choose the right mix based on your risk tolerance and investment horizon.

Systematic Investment Plans (SIPs)
Investing in mutual funds through SIPs allows you to invest a fixed amount regularly. This helps in averaging out the cost of investment and reduces the impact of market volatility. SIPs are a disciplined way to invest and can be aligned with your long-term financial goals.

Public Provident Fund (PPF)
PPF is a safe investment option with tax benefits. It offers a guaranteed return and the interest earned is tax-free. The PPF has a lock-in period of 15 years, but you can make partial withdrawals after 7 years. This can be a good addition to your retirement planning.

Sukanya Samriddhi Yojana (SSY)
Given that you have two daughters, investing in SSY can be a great option. This scheme offers a high interest rate and tax benefits under Section 80C. The maturity amount and interest earned are tax-free. It can be used for your daughters’ education and marriage expenses.

National Pension System (NPS)
NPS is another good option for retirement planning. It offers market-linked returns and tax benefits. The funds in NPS are invested in a mix of equity, corporate bonds, and government securities, which can help in accumulating a significant corpus over time. Since you already invest in NPS, consider increasing your contributions for better retirement benefits.

Avoiding Common Pitfalls
While reinvesting, it's important to avoid certain common pitfalls that can affect your returns.

Avoid ULIPs and Insurance-Linked Investments
ULIPs and insurance-linked investments often come with high charges and lower returns compared to mutual funds. If you hold any such policies, consider surrendering them and reinvesting the proceeds in mutual funds. Insurance should be kept separate from investments.

Avoid Direct Funds
Investing in direct funds might seem like a way to save on commissions, but it can be risky without professional guidance. Regular funds, invested through a certified financial planner, provide valuable advice and can help you navigate market complexities. The fees you pay are often worth the additional support and insights.

Regular Review and Monitoring
Regularly reviewing and monitoring your investments is essential. Financial markets are dynamic, and periodic reviews ensure that your investments remain aligned with your goals. A certified financial planner can help you with this, providing timely advice and adjustments.

Building an Emergency Fund
Before making any new investments, ensure you have an adequate emergency fund. This should cover 6-12 months of your expenses. An emergency fund provides a financial cushion in case of unforeseen circumstances like job loss, medical emergencies, or urgent repairs.

Tax Planning
Effective tax planning is crucial for maximizing your returns. Invest in instruments that offer tax benefits, such as PPF, NPS, and ELSS (Equity Linked Savings Scheme). This not only reduces your tax liability but also helps in growing your wealth.

Understanding Market Risks
While equity investments can provide high returns, they also come with higher risks. It’s important to understand your risk tolerance and invest accordingly. Diversifying across asset classes, as mentioned earlier, helps in managing these risks better.

Setting Up a Trust or Will
Since you’re planning for your daughters’ future, consider setting up a trust or drafting a will. This ensures that your assets are distributed according to your wishes and can provide financial security for your family.


Your proactive approach to managing your finances is commendable. It’s clear that you care deeply about securing a bright future for your daughters. Taking these steps will undoubtedly help you achieve your financial goals. Remember, every small step taken today builds a stronger financial foundation for tomorrow.

Final Insights
Reinvesting your Rs 10 lakh wisely can significantly boost your financial health. Focus on diversifying across mutual funds, PPF, SSY, and NPS. Avoid common pitfalls like ULIPs and direct funds, and ensure regular reviews of your portfolio. Build an emergency fund and plan for taxes effectively. Your dedication to securing a better future for your family is admirable. Stay the course, and you will achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in