i invested 18L own money and 6 Lakhs from MTF borrowing in Oct'22 to Oct'23 periods, now 24 Lakhs become 14 Lakhs, 10 Lakhs down, Alklyamine 98 @ 3300, relaxo 135@1083, PVRINOX 87@1865, tatainvest 250@1120,vstindustries 484@429,suntv...

i invested 18L own money and 6 Lakhs from MTF borrowing in Oct'22 to Oct'23 periods, now 24 Lakhs become 14 Lakhs, 10 Lakhs down, Alklyamine 98 @ 3300, relaxo 135@1083, PVRINOX 87@1865, tatainvest 250@1120,vstindustries 484@429,suntv 160@836,concor 250@860,clean 19@2060,bajajauto 14@11935,AWL 357@432,ATGL 20@1030,ADANIGREEN 20@1975,ADANIENT39@3390,ADANENSOL50@1324,ACC52@2600,COCHINSHIP10@2650,DATAPATTERN 10@3186,GRSE19@2975,MAZDOCK10 @3500,HONDAPOWER 10@4000,TATAELXSI17@7320,VBL30@660,BHARATFORG20@1740. GUILTY TO OVERRIDE WIFE SUGGESTION TO BUY JEWELS FOR DAUGHTER'S 3 YEARS AGO WHEN PF AMOUNT WITHDRAWN 13L, NOW THIS ALSO LOSS AND JEWEL ALSO 2.5 TIMES HIGHER THAN THAT TIME. WRONG DECISION. PLS CORRECT & SUGGEST. AGE 51

Ans: I would suggest you approach a SEBI Registered Investment Adviser nearby you and discuss the full story with your financial details and he/she would be the right person to guide you after analyzing all your requirements. You can find your nearest adviser from this link of SEBI - https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13

Ans: Your current situation is sensitive and needs careful financial restructuring.

You’ve shown resilience and discipline in building multiple assets. That is truly commendable. Let’s look at your finances from all angles and identify necessary improvements.

? Immediate Financial Assessment

– You’ve recently lost your job. So liquidity and cash flow are critical.
– You have Rs. 14L in PF and Rs. 10L in FD. These are your main emergency reserves.
– Monthly expenses are around Rs. 30K. Add Rs. 11K EMIs. Total outflow is Rs. 41K per month.
– You receive Rs. 45K/month from the business investment. This is currently sustaining your needs.
– However, this business income is not guaranteed or regulated. It may stop anytime.

? Review of Loans and Liabilities

– Home loan of Rs. 57L with Rs. 34K EMI is a big liability.
– Two site loans with Rs. 7L principal left and Rs. 8K total EMI.
– Total monthly loan burden is Rs. 42K. This is high without a regular salary.
– Try to negotiate for longer tenure to reduce EMI or explore moratorium options for 3–6 months.
– If the home loan interest is above 9%, evaluate refinancing to reduce EMI burden.
– Keep housing loan active if interest is low and tax benefit applies in future income.
– For site loans, if they don’t generate income, consider full repayment if surplus funds allow.

? Investment in Friend’s Business

– You’ve invested Rs. 48L in your friend’s business. Getting Rs. 45K monthly is helpful.
– There is no legal protection here. This is highly risky and illiquid.
– Check if this arrangement is documented. Ask for periodic business performance updates.
– Don’t increase this investment further. Avoid rolling over funds if they ask in future.
– If possible, recover partial investment in the next 6–12 months.

? Mutual Fund Portfolio Review

You have Rs. 13.7L in mutual funds. All are Direct Plans and some are small-cap.

– Direct plans may look low cost, but carry hidden issues.
– You don’t get hand-holding or behavioural support from a Certified Financial Planner.
– If market falls, panic selling happens due to lack of advice.
– Shifting to Regular Plans through a CFP or MFD helps in strategic guidance.
– Direct plans don’t help in structured goal-based investments.

Also, your fund mix is too aggressive:

– Small-cap funds are very volatile. You have over Rs. 6.5L here. That’s almost 48%.
– No pure debt or hybrid funds for stability.
– Market correction can wipe out value quickly.
– Stop investing further in small caps for now.
– Exit partially from small caps over next few months when market gives decent upside.
– Shift gradually to balanced advantage or multi-asset funds through a regular route.

? Fixed Deposits and Emergency Reserves

– You have Rs. 10L in fixed deposits. This is your safe cushion.
– Keep Rs. 6L untouched as emergency reserve.
– Use remaining Rs. 4L wisely for next 6–12 months if job doesn’t materialise.
– Don’t exhaust FDs to repay loans fully unless interest is very high.
– Also, avoid investing this in risky assets or friend’s business.

? Real Estate Assets – Sites and Property

– You own 6 sites worth Rs. 1.5 Cr. 4 are loan-free.
– These are wealth builders but do not generate income now.
– Maintenance and property taxes may drain liquidity.
– Sell one small site if you face prolonged income issues.
– Prioritise long-term family security over emotional attachment to land.
– Avoid real estate as new investments for now.

? Child’s Education Expense Planning

– School expenses are Rs. 1.3L per year, or around Rs. 11K monthly.
– It is being covered from current business income. That’s fine for now.
– But higher education will need Rs. 20–30L in next 6–10 years.
– Start a goal-based SIP once income resumes. Use regular plans via MFD with CFP.
– Choose hybrid and multi-asset funds. Avoid small-cap for this goal.
– Don’t touch PF for this purpose. Let it grow for your retirement.

? PF and Gratuity Utilisation

– PF of Rs. 14L and gratuity of Rs. 5.77L are solid buffers.
– Use gratuity to partly close one of the site loans if interest is high.
– Leave PF untouched if possible. Let it stay until retirement.
– Only in extreme emergencies, consider partial withdrawal.

? Income Planning Until New Job

– Rs. 45K/month from business is your primary income now.
– Total monthly need is Rs. 40–42K. You are barely covered.
– Avoid impulsive spending or any high-ticket purchases.
– If income from business stops, use FD or sell mutual fund units gradually.
– Try for a part-time role, freelancing or consulting if possible.
– Register on professional job portals and update your resume regularly.
– Don’t make drastic investment decisions out of fear. Take each step carefully.

? Insurance Assessment

You haven’t mentioned any term or medical insurance.

– If no term plan exists, buy one after you secure your next income.
– If you already have one, don’t discontinue it even now.
– Health insurance is must. Ensure at least Rs. 10L coverage for you and your daughter.
– Don’t depend on employer insurance in future roles. Keep personal policy active.
– Avoid endowment or ULIP type policies. They are low-return and inflexible.
– If any such policy exists, consider surrender and invest in mutual funds via regular route.

? SIP Strategy Going Forward

– You’ve stopped SIPs. That’s appropriate for now.
– Once job resumes, restart with Rs. 5K–10K per month.
– Use hybrid or multi-asset funds to begin with.
– Avoid direct plans. Regular plans help in goal tracking and behaviour control.
– Don’t rush into market timing or high-return chasing.
– Build your SIP based on goals, time horizon, and risk tolerance.

? Taxation Implications

– On selling equity funds, LTCG above Rs. 1.25L will be taxed at 12.5%.
– STCG will be taxed at 20%.
– Debt fund redemptions are taxed as per your slab.
– Plan redemptions wisely. Spread them across years to avoid high tax impact.
– Capital gains exemption not available on mutual fund proceeds used for loan closure.

? Risk Prioritisation and Behavioural Mindset

– Do not rely emotionally on business income or land appreciation.
– Focus on cash flow, not just assets.
– Income source is more important than asset value during job loss.
– Don’t mix emotions with money.
– Take help from a Certified Financial Planner to stay accountable and disciplined.
– Avoid greed-based decisions. Prioritise family safety and stability.

? Asset Allocation Restructuring Suggestions

– Target 30% in equity (through mutual funds – regular route).
– 40% in safe debt (FD + debt mutual funds).
– 30% in real estate (only 2–3 properties, not more).
– Avoid overexposure to land, business and direct equity.
– Diversify across asset classes. Liquidity should guide your choices.

? Finally

– Your financial foundation is decent, but currently strained due to income loss.
– Prioritise liquidity and income protection now.
– Cut expenses slightly where possible.
– Keep family goals protected, especially education and health.
– Don’t chase returns in this phase. Stability is more valuable.
– Get professional guidance to restructure your portfolio.
– Don’t take any emotional decisions under stress.
– Once income resumes, rebuild slowly with discipline and diversification.

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