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How to Become Crorepati with SIP: A 40-Year-Old's Journey

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 21, 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
Anil Question by Anil on Apr 20, 2025Hindi

How to become crorepati with sip

Ans: Becoming a crorepati through SIP is a smart financial dream.

It is very much possible for anyone.

Even if your income is modest, you can still reach Rs. 1 crore.

It only needs discipline, planning, and patience.

Let us explore how this can be achieved through a 360-degree approach.

We will break this into simple steps and areas to focus on.

We will also assess every important angle that can affect the outcome.

We will keep it practical and achievable for every Indian household.

Let us now begin step-by-step.

? Understanding SIP – The First Step

SIP means Systematic Investment Plan. You invest a fixed amount every month.

It is done into a mutual fund of your choice. You choose an amount you are comfortable with.

It builds discipline in investing and works well with monthly income.

It uses the principle of rupee cost averaging. It helps you buy more units when the price is low.

SIP works best in equity mutual funds for long-term wealth creation.

? Start Early, Invest Regularly

Time plays a very big role in wealth creation. Start early if possible.

Even small SIPs can become big amounts over time.

The longer you stay invested, the more your money can grow.

Power of compounding needs time to work effectively.

If you delay, then you need to invest more to reach the same goal.

? Choose Actively Managed Mutual Funds

Index funds look cheap but are not always better. They copy the market.

Index funds do not perform better than active funds in all conditions.

Actively managed funds have expert fund managers. They select the right stocks.

Actively managed funds can outperform the market with good strategies.

In India, market is still not fully efficient. So active management works better.

? Avoid Direct Mutual Funds – Go with Regular Funds via CFP

Direct funds may look cheaper but have hidden disadvantages.

In direct plans, you do not get personalised advice. You are on your own.

No guidance on when to enter or exit, or which fund to choose.

Regular plans have Certified Financial Planners (CFP) who track your goals.

They help you avoid wrong investments and improve returns.

Regular funds ensure proper handholding and better fund suitability.

? Decide Your Investment Amount and Time Horizon

Fix a goal – you want to become a crorepati. Write it down.

Decide when you want to reach Rs. 1 crore. 10 years? 15 years?

Choose your SIP amount based on your time frame.

Longer time means lower SIP needed. Shorter time means higher SIP.

Start with what you can afford. Increase it yearly if possible.

? Increase SIP with Income – Step-Up Strategy

When your income increases, your SIP should also increase.

This is called step-up SIP. You can increase it by 5% or 10% every year.

This makes your goal easier and quicker to reach.

It balances your lifestyle and investment growth.

Step-up SIP helps you reach bigger goals without stress.

? Diversify – But Keep It Simple

Do not put all money in one mutual fund. Use 3 to 4 funds.

You can have a large-cap fund, mid-cap fund and a flexi-cap fund.

You may also include sectoral or thematic fund for growth.

Do not over-diversify. Too many funds will dilute returns.

Choose quality funds with consistent long-term performance.

? Monitor Performance Every Year

Review your SIPs once a year. See if the fund is doing well.

Compare with other similar funds in same category.

Replace poor performers with better ones with help of a CFP.

Do not change funds too often. Give them time to perform.

Stay patient. Equity needs time to give results.

? Keep SIPs Running Even During Market Falls

Do not stop SIP when market is low. That is when SIP works best.

You get more units at lower prices. That boosts long-term returns.

Market corrections are normal. They help in wealth building.

Never time the market. Just continue SIP without emotions.

Discipline and consistency are the real wealth builders.

? Taxation Awareness – Know Before You Sell

Equity mutual funds have new tax rules now.

If you sell after 1 year, gains above Rs. 1.25 lakh taxed at 12.5%.

If you sell within 1 year, gains are taxed at 20%.

Debt mutual funds gains are taxed as per income slab.

Always plan withdrawals to reduce tax impact.

? Use SWP in Retirement Phase – SIP for Wealth Building

SIP is used to build wealth before retirement.

After retirement, use SWP (Systematic Withdrawal Plan) for income.

It gives monthly cash flow without disturbing investment.

Combine SWP with debt mutual funds for stability.

Helps in managing expenses while wealth continues to grow.

? Keep Emergency Fund Separate

Do not use SIP for emergency needs. Keep separate savings for that.

Emergency fund must be 6 to 12 months of expenses.

Use liquid mutual funds or short-term FDs for this.

This protects your SIP and long-term goal from disruptions.

Emergency fund gives peace of mind. Very important for every family.

? Stay Protected – Don’t Ignore Insurance

Buy good health insurance for all family members.

Have term insurance if you have dependents.

Do not mix insurance and investment. Avoid ULIP and endowment plans.

Surrender old LIC policies or investment-cum-insurance if returns are low.

Invest surrendered amount in mutual funds to boost growth.

? Goal-Based Planning Is Key

Your goal is not just Rs. 1 crore. It is why you want it.

Maybe for child education, retirement, or financial freedom.

Write down your goals. Link each SIP to a goal.

It keeps you focused and avoids unnecessary expenses.

Goal clarity improves savings and investment decisions.

? Avoid Emotional Investing – Trust the Process

Do not get influenced by news, friends, or market ups and downs.

Stick to your SIP. Trust the process and your planner.

Fear and greed are biggest enemies of wealth creation.

Keep SIPs boring and automatic. That is how wealth grows.

Discipline beats timing. Patience beats panic.

? Plan with a Certified Financial Planner

Certified Financial Planner helps you select the right funds.

They help create customised plan based on your goals.

They review your progress and make changes when needed.

Their guidance helps avoid costly mistakes. Very valuable support.

Choose CFPs with experience in mutual funds and retirement planning.

? Do Not Chase High Returns – Chase Consistency

Do not run behind best performing fund every year.

Past returns do not guarantee future performance.

Choose funds with consistent 5 to 10 year records.

Focus on funds with risk-adjusted returns, not just returns.

Consistency helps your SIP reach target smoothly.

? Don’t Delay – The Best Day to Start is Today

Many people wait for perfect time to invest. That never comes.

Start SIP with whatever amount you can now.

Even Rs. 1000 per month is a good start.

Increase amount later. But don’t delay the start.

Start early, stay long, and stay invested. That’s the simple formula.

? Automate Everything – Make SIP Hassle-Free

Set auto debit from your bank for SIP.

Choose date after salary credit. Never delay SIP.

Treat SIP like any other important monthly bill.

Automation ensures discipline. No temptation to spend first.

You focus on earning, SIP focuses on growing.

? Watch Out for SIP Disruptors

Avoid taking too many loans or EMIs. They reduce your SIP capacity.

Do not stop SIP to buy non-essentials. Plan purchases carefully.

Emergency, job loss or illness should not affect SIP. Plan for it.

Keep a buffer always. Avoid stress and continue investing.

Financial freedom comes with consistent behaviour.

? Finally – Your Journey to 1 Crore is a Reality

Becoming crorepati with SIP is not magic. It is method.

It needs time, planning, and belief in the process.

Avoid shortcuts. Stay away from market tips and trends.

Use SIP with right funds, right mindset, and right advisor.

This journey gives you more than money. It gives financial confidence.

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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You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 18, 2024

Asked by Anonymous - Apr 14, 2024Hindi
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I am 32 and wants to initiate SIP amounting INR 15000-20000 per month . Can you guide me how to initiate this , it will be for long term min. next 10-15 year . My goal is to have decent savings and funds for my just born baby future
Ans: Starting SIPs for You & Your Little One: A Smart Move!
Congratulations on becoming a parent and thinking about your future! Starting a SIP (Systematic Investment Plan) of Rs. 15,000-20,000 per month is a fantastic decision for your long-term goals (10-15 years). Here's how to get started and some tips:

Choosing a Platform:

Multiple Options: You can invest in SIPs through various platforms:
Mutual Fund Distributor (MFD) with a CFP: Get personalized advice and invest through their platform.
Online Investment Platforms: Invest directly on user-friendly platforms.
Benefits of Each Platform:

MFD-CFP: They assess your risk tolerance, goals, and recommend suitable funds. They can also help choose an online platform.
Online Platforms: Convenient and offer a variety of investment options.
Initiating Your SIP:

Simple Process: Once you choose a platform and funds, setting up an SIP is straightforward.

Automated Investment: SIPs automatically deduct a fixed amount from your bank account every month, ensuring disciplined investing.

Investing for Your Child:

Separate SIP: Consider a separate SIP for your child's future goals (education, etc.). A CFP can help choose child-specific plans.
Remember:

Start Early: The power of compounding can significantly grow your investments over time. 10-15 years is a great investment horizon.

Diversification is Key: Invest in a mix of equity and debt funds to balance growth potential with stability. Actively managed funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds.

Review Regularly: Review your SIPs (at least annually) with your MFD-CFP to ensure they remain aligned with your evolving goals.

Congrats on taking charge of your finances! SIPs are a powerful tool to build wealth for you and your child's future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

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Hello Sir , My Age is 25 and I am planning to start SIP although I am investing in stock market I don't have any idea in SIP and my goal is to have a corpus of 4 cr and from next year I will be able to save around 1 lakh rs per month so kindly help
Ans: Thank you for reaching out. It's great to hear you're planning to start investing in a Systematic Investment Plan (SIP).

At 25, you have a fantastic advantage with time on your side, allowing compounding to work in your favour.

Understanding SIP
SIP allows you to invest a fixed amount regularly in mutual funds.

It offers the benefits of disciplined investing and rupee cost averaging, helping mitigate market volatility.

Setting Your Goal
You've set an ambitious goal of accumulating a corpus of ?4 crores.

Starting early and investing regularly will help you achieve this target over time.

Monthly Savings Plan
You plan to save ?1 lakh per month starting next year.

This is a substantial amount and will significantly contribute to reaching your goal.

Expected Returns
Typically, mutual funds can offer varying returns.

For this discussion, let's assume an annual return of 12%. This is a reasonable estimate for long-term equity mutual funds.

Benefits of SIP
Rupee Cost Averaging: SIPs help average out the purchase cost over time.

Disciplined Investment: Regular investments instill financial discipline.

Compounding Benefits: Early and consistent investing leverages the power of compounding.

Flexible Investments: You can start with smaller amounts and gradually increase your SIP contributions.

Convenient and Automated: SIPs are automated, making the process convenient.

Steps to Start SIP
Define Your Goals: Clearly outline your financial goals and investment horizon.

Risk Assessment: Assess your risk tolerance to choose appropriate funds.

Select Funds: Choose actively managed funds for potentially higher returns.

KYC Compliance: Complete your KYC process, mandatory for investing in mutual funds.

Set Up SIP: Decide the SIP amount and start investing through your chosen mutual funds.

Evaluating Fund Performance
Historical Returns: Review the fund's historical performance.

Fund Manager's Track Record: Check the expertise and track record of the fund manager.

Expense Ratio: Lower expense ratios can lead to higher net returns.

Consistency: Look for funds with consistent performance across market cycles.

Monitoring Your Investments
Regular Review: Periodically review your investment portfolio.

Adjustments: Make necessary adjustments based on performance and goals.

Stay Informed: Keep yourself updated with market trends and news.

Disadvantages of Index Funds
Limited Flexibility: Index funds track a specific index, limiting flexibility.

No Outperformance: They aim to match, not outperform, the index.

Market Cap Bias: Heavily weighted towards large-cap stocks.

Benefits of Actively Managed Funds
Potential for Higher Returns: Skilled fund managers can outperform the market.

Flexibility: Managers can adjust portfolios based on market conditions.

Diversification: Actively managed funds often have a diversified portfolio.

Importance of Consulting a Certified Financial Planner
Personalized Advice: A CFP provides tailored investment strategies.

Holistic Planning: They consider your entire financial situation and goals.

Expert Guidance: Benefit from their expertise and market knowledge.

Building a Diversified Portfolio
Equity Funds: For long-term growth, consider equity mutual funds.

Debt Funds: Add stability with debt funds.

Balanced Funds: Combine equity and debt for moderate risk and returns.

Regular Funds vs. Direct Funds
Expert Advice: Regular funds through MFDs with CFP credentials offer expert advice.

Support and Guidance: Continuous support for your investment journey.

Holistic Approach: Regular funds ensure a comprehensive financial plan.

Conclusion
Starting a SIP is a wise decision.

It aligns with your goal of creating a substantial corpus of ?4 crores.

Remember to review your investments regularly and adjust as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 04, 2024

Asked by Anonymous - Aug 21, 2024Hindi
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Hello sir,my name is Karan. I'm 30 years old earning 55k a month. I want a corpus of 1 crore in 10 year how do i achieve that investing in sip. My monthly expense is 20k I'm investing 5k in Motilal Oswal
Ans: You are investing Rs. 10,000 every month in a children's benefit fund. Your goal is to accumulate Rs. 2 crore in 18 years. This is a significant target and needs a well-structured plan.

Understanding Your Investment Strategy
Investing in a mutual fund focused on children's education is a good start. This fund is designed for long-term goals and offers growth potential. However, it’s important to assess if your current investment will meet your target.

Estimating Future Returns
To reach Rs. 2 crore in 18 years, your investment must grow consistently. The rate of return plays a crucial role here. Most equity-focused funds aim for a return of 10-12% annually. However, these returns are not guaranteed and depend on market performance.

Power of Compounding
The concept of compounding is key to reaching your goal. When your returns are reinvested, they generate further returns, leading to exponential growth. Over 18 years, compounding can significantly boost your investment.

Monthly Investment Amount
Currently, you are investing Rs. 10,000 per month. Over 18 years, this equals Rs. 21.6 lakh in total contributions. For this to grow to Rs. 2 crore, your investments need to achieve a high rate of return.

Potential Growth Scenarios
If your investment grows at an average rate of 12% per year, reaching Rs. 2 crore is achievable. However, this assumes consistent growth and no major market downturns. Market fluctuations can impact your returns, so it's essential to stay invested for the long term.

Importance of Diversification
Relying on a single fund may not be enough to meet your goal. Diversifying your investments across different funds can spread risk and potentially enhance returns. Consider adding more funds with different investment strategies to your portfolio.

Actively Managed Funds vs. Index Funds
You’ve chosen a direct plan, which typically has lower expenses but lacks professional guidance. While this may save costs, actively managed funds, with a Certified Financial Planner (CFP) guiding you, can be more beneficial. They allow for strategic decisions to maximize returns, especially in volatile markets.

Why Direct Plans May Not Be Ideal
Direct plans are often chosen for their lower expense ratios. However, they don’t come with the personalized advice that regular plans offer through a CFP. This advice can help you navigate market changes and adjust your investments accordingly. Regular plans might have higher expenses but the professional management can help optimize returns.

Staying Disciplined with SIPs
Your SIPs (Systematic Investment Plans) provide discipline in investing. Regular investments, regardless of market conditions, help you build wealth over time. This approach reduces the impact of market volatility and keeps you on track to meet your goal.

Reviewing Your Investments Regularly
It's crucial to review your portfolio regularly. As you approach your target date, you may need to adjust your investments. Moving some of your funds to safer assets can protect your accumulated wealth.

Consider Inflation
Inflation can erode your purchasing power over time. Even if you reach Rs. 2 crore, the real value might be less than expected due to rising costs. It’s important to factor in inflation while planning your financial goals.

Adjusting Your Investment Strategy
If you find that your current investment plan may fall short, consider increasing your monthly SIP amount. Even a small increase can have a big impact over 18 years due to compounding.

Avoiding Common Investment Mistakes
It’s important to avoid common pitfalls like withdrawing your investments during market downturns. Staying invested and trusting the long-term growth potential of your funds is key to achieving your financial goals.

Final Insights
Reaching Rs. 2 crore in 18 years with a Rs. 10,000 monthly investment is possible, but not guaranteed. It requires a disciplined approach, regular reviews, and possibly an increase in your SIP amount. Working with a Certified Financial Planner can provide you with the guidance needed to navigate market changes and optimize your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

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

Money
Hi sir, I'm 25 years right now, How I can plan for SIP as a fresher from next month(November)?
Ans: Congratulations on planning to start your SIPs at the age of 25! Starting early gives you a huge advantage in wealth creation over the long term. In this detailed guide, I will share how you can begin your journey with SIPs and build a stable and growing financial portfolio over time.

Understanding the Basics of SIP
A Systematic Investment Plan (SIP) allows you to invest small amounts regularly in mutual funds. It is an excellent way to build wealth through disciplined investing over time. You don’t need to worry about timing the market. SIPs help in spreading the risk over time and benefit from compounding.

Identifying Your Financial Goals
Before starting any investment, it is essential to define your financial goals. Think about your short-term, medium-term, and long-term goals. For example, you might want to:

Build an emergency fund
Save for a car, vacation, or higher studies
Accumulate wealth for retirement
Defining your goals will help you decide the amount to invest and the right mutual funds for you.

Assessing Your Risk Tolerance
At 25, you have time on your side. You can afford to take higher risks in the early stages of your investment journey. However, it’s important to assess your risk tolerance carefully. Ask yourself: Are you comfortable with short-term volatility? Or do you prefer stable, lower-risk investments?

If you are willing to take some risk, equity mutual funds can provide better returns over time. For those who prefer safer options, debt mutual funds could be a better choice.

Deciding on Your SIP Amount
Start with a realistic amount that you can comfortably invest every month. Even if it’s a small amount like Rs 1,000 or Rs 2,000, it’s a great start. As your income increases, you can gradually increase your SIP amount.

Make sure that the amount you choose doesn’t affect your essential expenses. You want your SIP to be sustainable over the long term.

Selecting the Right Mutual Funds
While selecting mutual funds, there are a few things to consider:

Actively Managed Funds: These funds have professional fund managers who actively make decisions to generate higher returns. Though they have slightly higher fees, the potential for better returns justifies it.

Avoid Index Funds: Many people think index funds are a good option because of low fees. But they track the market, so you miss out on the chance of better returns through active management. Actively managed funds, guided by experienced fund managers, may outperform the market over time.

Regular Plans Over Direct Plans: Regular mutual funds come with the added benefit of working with a certified financial planner. This professional guidance ensures that your investments are aligned with your financial goals. Direct plans may seem cheaper, but without expert advice, you may end up making wrong choices.

Ensuring Proper Diversification
Don’t put all your money into one type of fund. It’s important to diversify across different types of mutual funds.

Equity Funds: For high returns, allocate a major portion of your investments here. These funds invest in stocks of companies and offer growth over time.

Debt Funds: These are safer options that provide stability. They invest in fixed-income instruments like bonds and are less volatile. You can allocate a smaller percentage of your portfolio here.

Hybrid Funds: These are a mix of equity and debt, giving you a balance between risk and reward.

Diversification helps to minimize risk and protect your investments during market downturns.

Emergency Fund
Before you dive fully into SIPs, make sure you have an emergency fund in place. Ideally, this should cover 3 to 6 months of your essential expenses. You can keep this amount in a liquid mutual fund or a savings account for easy access.

Having an emergency fund gives you financial security and ensures that you won’t need to withdraw your investments in case of an emergency.

Life Insurance and Health Insurance
At this age, it’s essential to protect yourself and your family from unforeseen situations. Consider taking a term life insurance policy to provide financial security to your dependents. It’s much cheaper to buy life insurance when you’re young.

Don’t forget health insurance as well. Having a comprehensive health insurance policy will protect you from unexpected medical expenses.

Insurance ensures that you don’t have to dip into your investments for health or life emergencies.

Tax Benefits from Mutual Funds
Mutual funds offer some tax benefits which you should take advantage of:

Equity-Linked Savings Scheme (ELSS): These funds allow you to claim a tax deduction of up to Rs 1.5 lakh under Section 80C. They also have a lock-in period of 3 years and invest in equity, offering good long-term returns.

Capital Gains Taxation: Be mindful of the tax treatment of mutual funds. Equity mutual funds held for more than 1 year qualify as long-term capital gains (LTCG) and are taxed at 12.5% for gains above Rs 1.25 lakh. If you sell them within a year, the short-term capital gains (STCG) are taxed at 20%. Debt funds are taxed according to your income tax slab.

Automate Your SIPs
Make it easy for yourself to invest regularly. Set up an automatic debit from your bank account on the same date every month. This will help you maintain discipline and consistency without the need to remember each month.

SIPs also work best when you stick to them over the long term, allowing your investments to grow with compounding.

Reviewing Your Portfolio Regularly
As you progress, it’s essential to review your SIPs and overall portfolio every 6 to 12 months. This will help you track your performance and make adjustments if necessary. Over time, you may want to increase your SIP amount or change the allocation between equity and debt funds.

Avoid Emotional Decisions
The stock market will always have ups and downs. It’s crucial to stay invested through all market cycles. Avoid reacting to short-term fluctuations. SIPs work best when you stay committed for the long term. When the market is down, your SIP buys more units, which will benefit you when the market recovers.

Final Insights
Starting SIPs at 25 is a fantastic decision. It’s one of the best ways to create wealth over time, thanks to the power of compounding.

Here’s a quick recap of your next steps:

Define your financial goals and risk tolerance
Decide on a comfortable SIP amount
Choose actively managed mutual funds over index funds
Opt for regular plans with certified financial planner guidance
Diversify across equity, debt, and hybrid funds
Build an emergency fund and secure insurance coverage
Automate your SIPs for regularity
Review your portfolio periodically and avoid emotional decisions
By following these steps, you’ll be on the right path to achieving your financial goals. SIPs provide a disciplined, systematic way to build long-term wealth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
My husband recently turned 60 Iam concerned about certain decisions he had taken in the recent past and would like guidance He bought a small flat 4 years ago with a loan from LIC on a 14 year old term He is a Consultant with serious health issues hence no insurance was given for the housing loan His income is about a lakh and above as and when there are projects and his treatment and medications coast roughly around 40k Loan amount is about 30k His credit card is used the max and now he has to pay 5lakh to clear the same I have few policies in my name and no major savings as the financial scenario had always been like whatever money comes goes into repaying the loan even the savings were spent that way Iam 56 and dont have a job Kindly let me know if thwre is any way we can get out of this mess atleast now
Ans: It’s not easy to speak openly about financial struggles. You've shown great strength and awareness. At this stage in life, decisions can feel heavy. But with the right steps, clarity and control can still be brought back.

You both are doing your best despite health and income challenges. Let us now analyse your case carefully and guide you with a step-by-step 360-degree plan. The goal is to reduce stress, regain control, and protect the future.

? Understanding the Current Financial Picture

– Your husband is 60. He works as a consultant.
– His income depends on projects. There is no steady monthly income.
– Health issues are serious. Treatment and medicines cost around Rs 40,000 monthly.
– The housing loan was taken 4 years ago from LIC Housing. Loan tenure is 14 years.
– Loan EMI is Rs 30,000 per month (assumed from your message).
– Credit card outstanding is Rs 5 lakhs. It is maxed out.
– There’s no insurance cover on the home loan due to health issues.
– You are 56. No current job or steady income.
– All savings have been used to repay loans.
– There are some policies in your name but no mention of maturity values.

Your family is clearly under debt pressure, health costs, and irregular income. But there are ways to restructure and rebuild slowly.

? First Focus – Debt Prioritisation and Restructuring

– Housing loan is Rs 30,000 EMI and will go on for 10 more years.
– Credit card dues are Rs 5 lakhs, with very high interest (35–45% annually).
– This is a red flag. You are in a repayment trap.
– Credit card dues must be handled first.

Take the following steps urgently:

– Stop using the credit card completely. Block it if needed.
– Approach the card issuer and request for a settlement plan or restructuring.
– Explain your financial condition clearly and ask for an interest waiver or long-term EMI option.
– In many cases, they agree to settle dues if you show inability to pay.
– Try to convert this Rs 5 lakh into a structured EMI plan.
– Target Rs 8,000–Rs 10,000 per month repayment with 0% interest if possible.

Reducing card interest will ease pressure on your cash flow.

? Second Focus – Managing the Home Loan

– LIC Housing Finance loans are generally inflexible but not impossible to manage.
– Contact them and ask for EMI reduction or tenure extension due to health issues.
– If the EMI of Rs 30,000 is becoming unaffordable, request for temporary EMI holiday.
– Check if interest-only payment is allowed for 6–12 months.
– Many lenders offer relief support in hardship. You must proactively ask.
– If no help from LIC, explore balance transfer to another lender with flexible terms.
– Try cooperative banks or smaller NBFCs who allow interest-only payments.

Home loan is a secured loan. So restructuring is possible. But early action is critical.

? Third Focus – Health Expenses and Alternatives

– Rs 40,000 per month for health care is too high, especially with debt.
– List down current medicines, tests, and treatments being done.
– Check if government hospitals or charitable trusts can offer the same at lower cost.
– For chronic diseases, many NGOs and pharma companies offer medicine at reduced cost.
– Apply for patient support programs from pharma brands.
– Also, check Ayushman Bharat scheme eligibility (depending on your card status).
– You may be eligible for free or subsidised treatment in empanelled hospitals.
– Ask doctors if generic medicines are available to reduce cost.

Reducing health cost by even Rs 10,000 monthly will help debt repayment.

? Fourth Focus – Your Role and Income Options

– You are 56. You are mentally active and seeking solutions. That is admirable.
– If possible, consider part-time or home-based earning.
– Areas like online tutoring, typing work, spoken English classes, or sewing can work.
– Even Rs 5000 per month income from your side will ease pressure.
– You can also try selling small food items, pickles, or snacks if you enjoy cooking.
– Many ladies your age run online micro-businesses using WhatsApp groups.
– Don’t aim for big income. Just stable and regular inflow is enough.
– This can also boost your confidence and create emotional stability.

You can become a contributor, not just a dependent.

? Fifth Focus – Review of Insurance and Existing Policies

– Your husband has no insurance on home loan due to health issues.
– You have few policies. But details are not shared.

Do this immediately:

– List down all policy names, premium paid, start year, and current surrender value.
– Avoid keeping traditional plans that give 3–4% return.
– If the plans are ULIPs, endowment, or money-back, surrender them if not maturing soon.
– Reinvest only after loans are under control.
– At this stage, you should not have insurance-linked investments.
– If any policy is about to mature in the next 2 years, wait and use maturity money for debt.

Cash flow must come first. Insurance-based savings can wait.

? Sixth Focus – Future Protection Must Be Minimal Yet Strong

– You both are nearing retirement or already retired in practical terms.
– Your future needs financial stability more than return.

Take these steps only when loans reduce:

– Get a small health insurance policy for yourself, if not already covered.
– If no insurer accepts due to age or health, keep Rs 50,000 to Rs 1 lakh in savings only for medical use.
– Don’t take annuity or pension plans. They lock up money.
– Don’t buy any new LIC or investment policy now.
– Protect your current income and reduce expenses. That itself is protection.

At your age, liquidity is more important than return.

? Seventh Focus – Mental Health and Family Discussion

– Stress is high in your household. Medical, financial, and emotional load is heavy.
– Please have an open talk with your husband and close family.
– Involve your children or siblings if they can support emotionally or financially.
– Sometimes even Rs 50,000 short-term help from a relative can reduce credit card stress.
– If not financially, ask for their help to handle bank or credit calls or paperwork.
– Support reduces burden on your mind. That helps in decision-making.
– Also, try simple breathing or spiritual practice. Inner strength helps in hard times.

Mental peace gives space for financial recovery.

? Eighth Focus – Role of Certified Financial Planner

– Your situation involves debt, illness, no regular income, and weak insurance.
– You should consult a Certified Financial Planner (CFP) to restructure cash flow.
– They will help create a plan that focuses on survival first, savings later.
– A CFP can also assess your old policies and guide surrender or hold.
– They give monthly tracking support. That will keep you disciplined.
– Most importantly, they will not try to sell products. They give strategy.

Right financial guidance now can protect your remaining 20+ years of life.

? Ninth Focus – What to Avoid at This Stage

– Don’t take any new loans to repay old ones.
– Don’t fall for agents who offer "loan on property without CIBIL check".
– Don’t invest in any product promising fixed income of 10% or more.
– Don’t invest in real estate or gold.
– Don’t buy new insurance policies now.
– Don’t take personal loans from NBFCs without checking full charges.
– Avoid investing in direct mutual funds without guidance.

This is the time to protect what you have. Not to grow. Safety first.

? Finally – Your Way Forward, One Step at a Time

– List all loans, dues, and policies on paper today itself.
– Contact credit card company and negotiate for restructuring.
– Reach out to LIC Housing and request temporary EMI relief.
– Cut health care costs where possible using trust hospitals and generic medicines.
– Explore small income ideas from home. Use your time as an asset.
– Review and possibly surrender low-value policies in your name.
– Get emotional support from family and mental clarity from a Certified Financial Planner.
– Start saving Rs 1000 monthly after all this. Slowly build emergency fund.

It is never too late to clean up and rebuild. Step by step, it is possible.

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

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Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2025

Money
Hi sir/madam we have lot of debts total 65laks debt including credit card s and Loan and in law's debt , because of bad cibil score we are not getting any bank loans .. we have upto 50laks debt from different different people only and remaining are credit cards and loan in that we are paying high interest for some amount..I have 2years old child due to take Care of him left my job last year and only income is from my husband side that is monthly 72000 ... Lot of pressure no savings and we don't have any property.. only one house in village that's belongs to in law's,how we can get out from this situation ... Please guide me in the right way ... Thank you Sir
Ans: You are managing a very difficult phase with great courage. Taking care of a 2-year-old, managing debts, and surviving on one income needs strength. That is commendable. There is always a way out, and step by step, things can be brought under control. Let us assess your situation and guide you with a 360-degree plan.

Let us start with each area.

? Current Debt Situation – Assessment and Analysis

– Your total debt is around Rs 65 lakhs.
– Out of this, Rs 50 lakhs is from private sources like friends, relatives, and others.
– The remaining includes credit card dues and loans from banks or NBFCs.
– Credit cards usually charge very high interest. Sometimes it goes above 40% annually.
– Loans from informal sources may also have high interest, and may not offer flexibility.
– Your family income is Rs 72,000 per month.
– No savings are left. You are paying EMIs and interests mostly.

This is a high debt-to-income ratio. Your first goal should be reducing the financial stress.

? Your Current Life Priorities

– Your child is 2 years old and needs full-time care.
– You are currently not working. That limits income inflow.
– You stay in a house which is in your in-laws' name.
– There is no other property or asset for liquidation.
– You are not eligible for formal loans due to poor CIBIL score.

You are in a repayment trap. So planning cash flow is the first step. Let us go ahead.

? Immediate Steps to Reduce Monthly Pressure

– Prepare a simple monthly budget with basic needs only.
– Cut all non-essential expenses like OTT subscriptions, outings, or extra phone plans.
– Set aside a fixed monthly amount only for basic household needs.
– Whatever remains should go for EMI and loan interest.
– Check if some credit card EMIs can be converted into longer-term EMIs at lower rate.
– Talk to credit card companies. Request them to restructure dues based on your situation.
– In some cases, they may reduce interest or give longer repayment time.
– Prioritise repayment of highest-interest loans first. Credit cards are usually on top.

Even Rs 3000 saved monthly can make a difference in this cycle over time.

? Family and Social Debt – A Special Strategy Needed

– You mentioned Rs 50 lakhs is taken from different individuals.
– These are often friends, relatives, or informal contacts.
– Arrange all these borrowings on paper.
– Write down names, total borrowed, repayment timeline, and interest agreed.
– Some of them may have flexible repayment expectations.
– Be honest and explain your situation to them openly.
– Request for time, restructuring, or even a temporary pause.
– You may be surprised. Many people value honesty and will support.
– Try to combine these into 3-4 groups based on urgency.
– Prioritise those who are putting more pressure or charging high interest.

Consolidating this data is emotionally hard but will reduce stress later.

? Improving Your Credit Health Gradually

– Bad CIBIL score can be improved. But it takes time and method.
– Keep paying minimum dues on credit cards on time.
– Avoid new missed payments at all cost.
– Do not apply for any more loans now. That will reduce your credit score further.
– Keep only 1 or 2 cards active, close or block others to reduce temptation.
– Use those cards for basic needs only, if needed.
– Repay small loans or cards first and get them closed.
– One closed loan improves your credit history.
– Within 12 to 18 months, you can start seeing better credit score trends.

Your CIBIL score is not permanent. It is only temporary and can be corrected.

? Exploring Income Opportunities – Even If Small

– Your husband is earning Rs 72,000. That is a good base income.
– Any small income from your side will help boost cash flow.
– Since you are at home with a child, try online work options.
– Content writing, tutoring, transcription, or simple data entry are good starts.
– You can teach basic classes to 1-2 kids from home, if possible.
– Try homemade food orders, tiffin services, or simple snacks selling.
– Even if you earn Rs 5000 to Rs 8000 monthly, it will help.
– Focus on work that doesn’t affect child care but gives steady income.

When income grows, debt pressure automatically reduces. Even small income is useful.

? Financial Habits – A Strong Foundation Needed

– Start a habit of noting down expenses daily in a diary or app.
– Encourage your husband also to track and review monthly spending.
– Build a monthly review routine on 1st of every month.
– Mark which debts you are closing slowly.
– Celebrate small wins. It will keep you both motivated.
– Avoid cash spending. Use digital modes to track better.
– Avoid lending money to anyone during this phase.
– Focus only on your financial health and goals.

Discipline is more powerful than income in managing financial stress.

? Insurance – Protection Must Be Revisited

– Check if your husband has term insurance. If not, take one urgently.
– It should cover 10-15 times of his annual income.
– Avoid ULIPs, traditional endowment, or money-back plans.
– Those are expensive and give low return.
– Just go for pure term life cover. Premium is low.
– Health insurance must be active. That should cover you, your husband and child.
– Hospital expenses can break your budget and create more loans.
– If you don’t have cover, take a family floater with minimum Rs 5 lakhs.
– Don’t depend on employer insurance alone.

Protection gives peace of mind when income is limited and loans are high.

? Investment Planning – Not Now, But Keep This in Mind

– Right now, investment is not your priority.
– Your focus should be only on loan reduction and cash flow improvement.
– Once you start saving at least Rs 5000 monthly, then think of investing.
– When you are ready, start investing via regular funds with the help of a Certified Financial Planner.
– Don’t go for direct funds. Those require expertise and time, which you may not have now.
– Regular plans through an expert will help with proper review, rebalancing and risk reduction.
– Start with low-risk balanced or hybrid funds when ready.
– Don’t go for index funds. They work without active decision-making.
– In your situation, you need strategy, not passive management.

First fix your financial house. Then slowly move to investments with guidance.

? Role of Certified Financial Planner – Not Optional in Your Case

– Your situation is complex and emotional.
– A Certified Financial Planner (CFP) can guide with full planning.
– They will not only suggest mutual funds.
– They help in budgeting, debt reduction, insurance, investments, and long-term financial goals.
– They will track your debt movement and coach you through recovery.
– You can also ask them to talk to creditors if needed.
– Having a professional removes pressure from your mind.
– It creates direction, accountability and hope.

You are not alone. Support from a planner is like having a coach for your money.

? Emotional and Family Support – Use It Well

– Please share your situation with close family members.
– Ask if any of them can give interest-free loans or support.
– Even a short-term pause in debt collection will help you breathe.
– Encourage your husband to take care of his mental health too.
– Managing pressure daily affects relationships.
– Talk regularly. Plan together. Review every week.
– Avoid blame games or finger-pointing. That delays recovery.

Staying united as a family is your biggest strength right now.

? Legal Angle – Keep This in Mind

– If any creditor is harassing or threatening illegally, take legal help.
– Credit card companies cannot visit home or threaten physically.
– You can file a police complaint if anyone behaves violently.
– Keep written communication for all deals. Avoid oral agreements.
– In extreme cases, you can explore legal debt relief options.
– These include debt settlement, restructuring, or insolvency code (if no way out).
– But that should be last option after all other steps.

Use law as support, not a first step. Prevention is better than conflict.

? Finally – Hope and Direction Are Both Possible

– You are already brave to face this head-on.
– You have taken a wise first step by seeking guidance.
– Now break your goals into 3 parts: reduce debt, increase income, protect future.
– Step by step, reduce one high-interest debt.
– Stay consistent with your tracking and discipline.
– Your situation can change within 2-3 years with small steady actions.
– Don’t lose hope. Your child will grow. Your income will grow.
– Start now. Stay focused. Keep building small wins every month.

We believe in your recovery and future progress.

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

...Read more

Nayagam P

Nayagam P P  |9419 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Bsc computer science Delhi University or VIT bhopal CSE cloud computing.....which is better
Ans: Poonam, Delhi University’s three-year B.Sc. (Hons Computer Science follows a Choice Based Credit System with 14 core papers—including Programming in C++, Java, Data Structures, Operating Systems, Computer Networks, Design and Analysis of Algorithms, Database Management Systems, Theory of Computation, Artificial Intelligence and Computer Graphics—supplemented by discipline-specific electives, generic electives and skill-enhancement courses totaling 140 credits under CBCS. The program enjoys AICTE approval, UGC recognition, NAAC ‘A+’ accreditation, a Central Placement Cell that achieved an 88.42% placement ratio in 2022-23 with 252 offers from 78 companies (highest-to-median packages undisclosed) and median UG packages of ?5.5 LPA (three-year) and ?8.5 LPA (four-year) as per NIRF 2024. DU benefits from a highly experienced, research-active faculty, extensive university clubs and industry tie-ups for internships, but admits only via DU-CET with limited seat flexibility and minimal specializations beyond core CS.

In contrast, VIT Bhopal’s four-year B.Tech CSE (Cloud Computing and Automation) is a 160-credit program featuring 55 credits of core CS (Data Structures, Algorithms, Operating Systems, Networks), 12 credits of cloud architecture and services, 15 elective credits (AI, ML, IoT, Cybersecurity, DevOps, Containerization, Blockchain), plus university and soft-skill courses under a Fully Flexible Credit System. Accredited by UGC, NAAC A++ (2021), NBA and ABET-aligned FFCS, it boasts 100% doctoral faculty, a 1:70–1:100 faculty-student ratio, dedicated cloud-computing labs, PARAM HPC access and a centralized VIT Career Development Centre recording over 90% placement for CSE branches with average packages near ?11 LPA and marquee recruiters across IT and core sectors. VIT offers semester-wise elective choice, lateral exit options and interdisciplinary projects, but commands higher fees (~?7.92 L) and admits via VIT-EEE or JEE Main rank.

While DU’s B.Sc. CS delivers rigorous theoretical grounding, diverse electives and cost-effective public-university benefits with strong placement support for core CS roles, VIT Bhopal’s CSE (Cloud Computing) provides specialized industry-aligned cloud curriculum, superior lab infrastructure, flexible credit system, higher placement percentages, and stronger corporate partnerships—albeit at greater cost and commitment.

Recommendation: For a student prioritizing a cost-effective, broad theoretical foundation with reputable public-university prestige and adequate placement infrastructure, B.Sc. (Hons.) CS at Delhi University is compelling. Conversely, for those seeking specialized cloud computing expertise, cutting-edge labs, flexible curriculum choices, higher placement rates and global industry tie-ups—even at higher fees—the B.Tech CSE (Cloud Computing and Automation) at VIT Bhopal is more aligned with emerging technology careers. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9419 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Dear Sir, My son has secured admission to Information Science Engineering (ISE) at Nitte Meenakshi Institute of Technology, Bangalore. He wanted to study at colleges like RVCE or PES, but based on his KCET/JEE rank, it is difficult to get admission to these colleges. Hence, I am exploring the option of a CSE management seat in these colleges. How are the future prospects of ISE at NMIT? Is it worth spending for a management seat? Your advice will greatly help us make a well-informed decision. Let me know if you need any further edits or have additional content to check!
Ans: Amit Sir, After carefully researching the fee structures for MQ seats at RVCE and PES—which can reach ?50–75 lakh including tuition, hostel, and related costs—it’s important to assess the return on such a significant investment. Spending more than ?25 lakh for an undergraduate engineering seat is rarely justifiable, regardless of affordability. A better approach is to pursue quality education at a Tier-2 college and supplement it with technical and soft-skills certifications; this combination can be highly effective for career growth. Success in any engineering branch depends on staying updated with evolving job market requirements. Regarding ISE at NMIT & the Scope of This Branch: The Information Science & Engineering (ISE) program at Nitte Meenakshi Institute of Technology blends robust academic foundations, accreditation, cuttingedge infrastructure, research engagement, and strong placement outcomes to prepare graduates for rapidly evolving technology roles. Established in 2001, the department holds NBA Tier-1 accreditation (Washington Accord) valid through 2026–27 and VTU affiliation, underscoring its adherence to global quality standards and rigorous outcome-based curriculum design. The syllabus spans core computing principles (data structures, algorithms), advanced domains (machine learning, cybersecurity, IoT, cloud computing), and hands-on capstone projects in state-of-the-art labs equipped with HPC clusters, specialized AI/DS workstations, embedded systems platforms, and dedicated research facilities for doctoral and postgraduate work. Faculty members actively engage in sponsored research projects from DST, SERB, AICTE and industry partners, fostering a culture of innovation and equipping students with problem-solving and analytical skills essential for complex system design. Industry tie-ups and MoUs with leading IT firms and technology providers enable structured internships, hackathons, and industrial training, bridging the academia–industry gap and ensuring graduates are workforce-ready. The dedicated placement cell records an 88.37% placement rate for ISE graduates in 2024, with recruiters including Infosys, Wipro, IBM, Dell and emerging startups, reflecting sustained demand for ISE skills across software development, data analytics, cybersecurity and network engineering wings. Broad IT industry projections anticipate over 30% growth by 2028 in areas such as AI/ML, big data, cloud services, and cybersecurity, driven by Digital India initiatives and global digital transformation. ISE graduates can pursue roles as software engineers, data scientists, cybersecurity analysts, cloud architects and IoT specialists, and also explore research, product management and entrepreneurial ventures in HealthTech, FinTech and Industry 4.0 domains. Backup pathways include specialized M.Tech and online certifications in data science/AI and emerging fields. With its accredited curriculum, modern labs, research orientation, industry collaborations and strong placement record, NMIT’s ISE program offers comprehensive preparation for future technology careers and leadership roles in a dynamic job market.

Recommendation
With its Washington Accord–equivalent accreditation, immersive labs, active research projects, industry-integrated training and 88% placement consistency, NMIT’s ISE stands out as an excellent platform. Aspiring engineers should seize this program’s blend of academic rigor and practical exposure to secure rewarding roles in AI, data science, cybersecurity and cloud domains. All the BEST for a Prosperous Future!

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