Hi sir, Iam 31 years old, my monthly salary is 1L, without proper planning I purchased a house with 50L home loan with monthly EMI is 45444 , and I'm investing 1.quant Elss tax saver fund - 5000, parag pratik Elss tax saver fund-2500 3. Quant small cap fund -1000 4.Gold -1000,now I'm feeling regret with my decision of my house so now I'm planning to sale the house to skip monthly EMIs so that I can invest that money in SIPs can you please advice a is my decision is good or not please give me a advice Thank you in advance

Ans: It sounds like you're making some big financial decisions, and it's great that you're considering your options carefully. Taking out a home loan while keeping your SIPs intact could be a strategic move. It allows you to maintain your investment momentum while also spreading out the cost of your home purchase over time.

However, withdrawing your SIP funds to reduce the home loan amount could also be a viable option. It would lower your debt burden and potentially save you on interest payments in the long run.

Before making a decision, consider factors like the interest rates on the home loan versus the potential returns on your SIP investments. Also, think about your long-term financial goals and how each option aligns with them.

Consulting with a financial advisor could provide valuable insight into the best course of action based on your specific circumstances and goals. With careful planning, you'll be on track to achieving your dream of homeownership while securing your financial future.

Ans: Dear Friend, Given your current financial standing, closing your home loan by March 2025 seems like a wise choice. You have Rs 26.5L parked in the SBI Max Gain account, which already reduces your interest liability. By clearing the remaining Rs 12.65L, you can become debt-free, providing peace of mind and freeing up your EMI payments for additional investments. While the home loan offers tax benefits under the old regime, the psychological comfort of being debt-free may outweigh the potential tax savings, especially since your financial portfolio is already strong.
Once the loan is closed, increasing your monthly SIPs to Rs 2L would be a smart move. Over the next 10 years, equity mutual funds, which historically offer returns of 10-12% annually, can significantly grow your wealth. Since you are already investing in a diversified portfolio of index, small-cap, mid-cap, and flexi-cap funds, increasing these investments aligns well with your long-term goals.
Investing in real estate, particularly land, can provide diversification. However, real estate is typically less liquid and the returns can be location-dependent. If you're confident in the property’s growth potential, this can be a good long-term investment. However, your existing strategy of focusing on equity mutual funds will likely offer better returns and flexibility, given your 10-year investment horizon.
So closing your home loan by March 2025 and redirecting the freed-up funds into increased SIPs appears to be the best route. It balances peace of mind, tax efficiency, and long-term wealth creation, while real estate can be considered for diversification if you find a promising opportunity.
There are many real estate opportunities like REIT or Partial ownership in commercial properties which can also yield between 14 to 22% overall return with about 5 to 8% monthly return and 10 to 12% of Growth in the Asset Value at end of tenure.
Investment is commodities like gold and silver can also yield a return of 8 to 10% with reducing the risk in one sector.
Diversification is the mantra, do not depend on only one or two type of investment avenues. Explore other options as well.

Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

Ans: ? Current Saving Behaviour is Very Strong
– You are saving Rs. 1 lakh per month. That is a great habit.
– Saving over 60% of your income is not easy.
– You are also keeping EMI and lifestyle under control.
– This shows financial discipline.

? Plan to Repay Home Loan Fully in 2 Years
– You plan to save Rs. 24 lakh in 2 years.
– You want to use this to close the Rs. 29 lakh home loan.
– This idea is simple and direct. But there is a better way.
– Instead of repaying loan fully, consider part-payment.
– Home loan gives tax benefits under Section 24 and 80C.
– Interest paid reduces your taxable income.
– If loan rate is less than 9%, you can invest the savings.
– Market can give better returns than home loan interest.
– But only if you are okay with risk and long-term view.

? Think of a Balanced Approach
– Repay loan slowly, not all at once.
– Invest part of the Rs. 1 lakh monthly savings.
– Use the rest to do part pre-payments.
– This creates wealth and reduces loan too.
– If you put all money only to close loan, you lose growth.
– Once loan is over, time left for retirement or education becomes shorter.
– Power of compounding works only with time.

? Investment Plan for Next 2 Years
– Invest at least Rs. 50,000 per month now.
– Keep Rs. 50,000 for part pre-payment.
– Start SIP in 3 to 4 mutual funds.
– Choose different categories to spread risk.
– Include one flexi-cap fund.
– One large and mid-cap fund.
– One balanced advantage fund.
– Optionally add one mid-cap fund for growth.
– Avoid index funds. They have no active management.
– Actively managed funds give better downside protection.
– Don’t invest through direct plans.

? Why You Must Avoid Direct Plans
– Direct plans have no guidance or help.
– They look cheaper but not suitable for all.
– You miss portfolio reviews and rebalancing support.
– A Certified Financial Planner with MFD license adds value.
– Regular plan cost is worth for long-term wealth creation.
– You get advice, handholding, and risk management.

? Planning for Child's Higher Education
– Your son is 12. So, you have 5 to 6 years only.
– You need to create corpus by then.
– Estimate amount needed for UG and PG together.
– Assume inflation of 8% per year in education cost.
– Start SIPs now to use full 5–6 years compounding time.
– Keep child goal investments separate.
– Use SIP in funds with moderate to high growth.
– Flexi-cap and large & mid-cap are good.
– Don’t put this money in PPF or FD.

? Planning for Your Retirement
– You are 43 now.
– You have 17 years for retirement at 60.
– Retirement planning must start early.
– Use SIPs in growth-oriented mutual funds.
– You can take slightly higher risk here.
– Add mid-cap and small-cap exposure.
– Continue these SIPs even after closing your home loan.
– Keep increasing SIP by 10% every year.
– That way you build a big corpus.

? Avoid These Common Mistakes
– Don’t stop SIPs after a market fall.
– Don’t use retirement fund for short-term needs.
– Don’t mix insurance and investment.
– If you have ULIPs or LIC plans, surrender them.
– Reinvest that money in mutual funds.

? Emergency Fund is Also Needed
– You didn’t mention emergency savings.
– Keep Rs. 3 to 6 months of expenses separately.
– Use liquid fund or sweep-in FD for this.
– This gives safety without breaking investments.

? Review Life and Health Insurance Cover
– You have a loan and a dependent child.
– Minimum term insurance should be Rs. 1 crore.
– Get a separate pure term plan.
– Don’t mix investment with insurance.
– Ensure Rs. 10–15 lakh health cover for your family.
– Include critical illness cover if possible.

? Tax Planning Can Be Aligned with Goals
– Invest under Section 80C in ELSS funds.
– ELSS gives 3-year lock-in but high growth potential.
– It also reduces tax liability.
– Use 80D for health insurance deduction.
– Plan investments in a tax-smart way every year.

? Your Plan is Positive and Achievable
– You already have good habits.
– Savings rate is excellent.
– Just a few tweaks are needed.
– Mix loan prepayment and mutual fund investing.
– Keep goals separate with clear timelines.
– Avoid index funds, direct plans, and traditional insurance.
– Use certified financial planner to guide you.

? MF Tax Rules to Keep in Mind
– Equity fund LTCG above Rs. 1.25 lakh taxed at 12.5%.
– STCG on equity funds taxed at 20%.
– Debt fund gains taxed as per slab.
– Do goal-based redemptions with tax planning.
– Use systematic withdrawal for retirement income later.

? SIPs to Consider (Without Scheme Names)
– 1 Flexi-cap fund – stable and adaptive.
– 1 Large & mid-cap fund – good balance.
– 1 Balanced advantage fund – helps in volatility.
– 1 Mid-cap fund – better growth over long-term.
– Avoid sectoral or thematic funds now.
– Don’t add small-cap unless you understand its risk.

? Final Insights
– You are on the right path.
– Keep going with a clear structure.
– Don’t rush to close loan completely.
– Let investments work with time.
– Use SIPs to build child and retirement corpus.
– Review your plan every year.
– Increase SIP amount as your income rises.
– Take guidance from MFDs who are Certified Financial Planners.

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

Ans: Your portfolio is largely invested in FD, RD, Debt Fund, PF, PPF etc., ie. 65-70% and rest in Equity MF/Direct Equities. Detail of NPS Funds and MF SIP MFs not given. However your financial management discipline seems commendable. Sure you can plan for additional investment per month. SIFs are being launched / launched only by a few Mutual Funds houses as of now. SIFs are inherently more riskier than normal mutual funds although it will depend on SIF's Investment Strategies. Minimum investment amount in SIFs is Rs 10 Lakh and eligible Investor are HNIs and accredited investors. Please contact your investment advisor in this regard.