I live in a joint family in mumbai, we are 8 members, one son is working in the US, with a ctc of $90000, the other son is pursuing his studies at a college in mumbai, and the other 6 members are either retired or housewives, collectively we have...

I live in a joint family in mumbai, we are 8 members, one son is working in the US, with a ctc of $90000, the other son is pursuing his studies at a college in mumbai, and the other 6 members are either retired or housewives, collectively we have 2 crores in fixed deposit, 3 crores in equity, 1.5 crores in jewelry and 2 self owned flats in mumbai, of which 1 is rented out and the other is occupied by us. My question is, that is this amount good enough for a family of my size in mumbai?

Ans: Your financial standing is impressive, but assessing whether it's sufficient for a family of 8 in a city like Mumbai requires a closer look at each asset and its potential growth or liquidity.

Fixed Deposits: Rs. 2 Crores
Fixed deposits provide a stable but relatively low return on investment. At around 6%-7% interest, this generates approximately Rs. 12 to 14 lakhs annually. However, given the inflation rate, the real value of this investment may not grow significantly over time. Therefore, while it’s secure, you might want to explore options that yield higher returns without compromising liquidity, especially for long-term needs.

Equity Investments: Rs. 3 Crores
With Rs. 3 crores in equity, you have a high potential for growth. Equities generally outperform inflation and fixed deposits over time, especially in a long-term horizon. Assuming an average return of 10%-12% per annum, your equity portfolio can generate substantial wealth over time. However, the volatility of equity markets means that you should have a clear risk strategy in place. Given your family’s age mix, maintaining a balanced portfolio with some exposure to debt might be worth considering to protect against market fluctuations.

Jewelry: Rs. 1.5 Crores
While gold and jewelry are valuable assets, they do not generate regular income and may not provide liquidity unless sold. However, they act as a good hedge against inflation and economic uncertainty. You could consider them as a fallback or emergency asset rather than part of the regular financial strategy.

Real Estate: Two Flats in Mumbai
Real estate is a significant asset, particularly in Mumbai, where property values tend to appreciate well over time. You already have one flat generating rental income, which is great. It’s important to assess whether the rental yield is competitive with other investment opportunities, as real estate can sometimes have low rental returns compared to its value. Also, you should periodically review the property market for opportunities to optimize this asset.

Living Expenses for a Joint Family
Mumbai is an expensive city, and for a family of 8, your living costs could be significant. Healthcare, daily expenses, lifestyle costs, and emergencies all need to be considered. Given that several family members are either retired or dependent, you’ll need to ensure that your investments generate enough cash flow to cover ongoing expenses.

Income from Abroad: Son in the US
Your son earning $90,000 annually is a major financial support, assuming he contributes to the household. His income can help meet any shortfalls in day-to-day expenses or cover larger family needs like healthcare or property maintenance. However, depending too heavily on external income may create financial vulnerability, particularly if circumstances change.

Future Financial Planning: Key Considerations
Retirement Needs: Since 6 out of 8 family members are either retired or housewives, ensure your current financial assets cover healthcare costs, emergencies, and inflation-adjusted living costs.

Liquidity: Ensure you maintain sufficient liquidity. Fixed deposits and equity portfolios are good, but always keep a cash buffer for emergencies, especially for medical expenses.

Wealth Preservation: You may want to rebalance your equity portfolio periodically to reduce risk as family members age. A Certified Financial Planner can help you manage this transition smoothly.

Diversification: While you have a well-diversified asset base, ensure that your investments match your family’s risk tolerance and future needs.

Final Insights
Your financial situation is strong, but it needs to be managed wisely for long-term security. Periodic rebalancing, ensuring liquidity, and maintaining a stable cash flow from assets like real estate and fixed deposits will be crucial.

Best Regards,

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

Ans: You have already built a good base. It shows commitment and consistency. That itself is a big positive. Still, from a Certified Financial Planner’s view, there are key areas to refine. Your money can work harder and smarter with better strategy.

Let’s go step by step and assess each part. We will also explore 360-degree actions for long-term security and wealth.

Evaluating Your Mutual Fund Holdings
You have four mutual funds, all direct plans.

Direct funds may look better due to lower cost. But they lack expert guidance.

Without regular review, many direct fund portfolios fail to meet goals.

Regular funds through a Certified Financial Planner give right fund choice, monitoring and timely switch.

Direct plan investors often struggle with rebalancing, tax planning, and behaviour control.

Your current funds are all sector-specific or thematic. These funds are high-risk.

Blue Chip fund is better in comparison. Still, active large-cap fund with guidance is preferred.

Tech, Banking, and Energy funds are sector funds. These work only in cycles.

Sector funds are not for long-term stable wealth creation. They carry timing risk.

If you miss the right time to enter or exit, you may see poor returns.

For wealth creation, diversified equity mutual funds in regular plan are much safer.

Exit sector funds slowly. Reallocate in diversified, balanced, actively managed funds.

Mutual funds are powerful. But the right plan, right category and review are critical.

Without a Certified Financial Planner, it is like driving without a steering wheel.

Assessing Your Recurring Deposit and PPF
You are doing Rs. 2.5K monthly RD. It will run for 10 years.

RDs give fixed returns. But post-tax return may not beat inflation.

Use RD only for short-term or specific near-goals.

Do not continue RD for 10 years. Consider shifting to short-term debt mutual fund.

PPF is Rs. 12.5K per year. It is a great safe option for long-term.

But it is not enough. Try to increase PPF contribution gradually if possible.

PPF can also be useful for retirement or children’s education.

But again, it should not be the only tool. Combine with other flexible tools.

Review of ULIP and LIC Jeevan Saral
You hold a Kotak Assured Income ULIP of Rs. 1 lakh per year.

Also, LIC Jeevan Saral with Rs. 12K per year.

Both are insurance + investment products. That is the main issue.

ULIPs and LIC policies often offer low returns. Generally between 4% to 5.5%.

These are illiquid and lock your funds for long periods.

You are losing better growth opportunity through these products.

If you do not depend on them for insurance, surrender them.

Reinvest those amounts in proper mutual funds. Only if no surrender charges apply.

For protection, take pure term insurance. That is more efficient and cost-effective.

Investment must always be separate from insurance. Mixing both is financially weak.

About Your Health Insurance
You have HDFC Ergo Family Floater Health Policy. Premium is Rs. 24K per year.

This is good. It shows you are protecting your family’s health needs.

Ensure coverage amount is suitable. Family of 4 needs minimum Rs. 10–15 lakhs.

Check if the plan includes cashless service, critical illness, and room rent flexibility.

Health inflation is rising. Upgrade coverage as you grow older.

Also keep a small emergency fund to manage deductibles and uncovered costs.

Evaluating Physical Gold Holding
You own 200 grams of physical gold bought in FY 2022 and 2023.

Gold offers protection during uncertain times. But it gives no regular income.

Physical gold also has risk of safety, theft, and storage cost.

It is not liquid easily. You cannot sell a small portion smoothly.

Limit gold allocation to 5–10% of net worth. That too in smarter forms.

Going forward, do not increase physical gold. Focus more on financial assets.

Key Gaps and Areas for Improvement
You have no dedicated debt mutual funds in the portfolio.

Debt is important for diversification and goal-based allocation.

You are heavily into equity, and that too in sector-specific equity.

You are using direct funds. That puts you at risk of wrong decision-making.

You are stuck in insurance-cum-investment products. These hurt wealth building.

You are not yet doing proper goal-based planning with expert support.

Ideal Portfolio Allocation Strategy
Your family of four needs a proper mix of growth and safety.

Here is a direction to move forward:

Reduce and stop investing in sector funds. Switch slowly to diversified equity funds.

Always choose regular plans. Work with a Certified Financial Planner.

Allocate 60–70% to equity mutual funds for long-term wealth building.

Allocate 20–25% in debt mutual funds for stability and emergency planning.

Use liquid or ultra short-term debt funds for contingency.

Keep 5–10% in gold. But reduce physical gold. Prefer gold saving options in digital form.

Increase PPF if possible. But don’t over-rely on it.

Surrender LIC and ULIP. Reinvest in mutual funds through CFP guidance.

Review portfolio every 6 months. Adjust as per life changes.

Children’s Education and Retirement
As a family of four, you must prepare for key milestones.

Start saving for children’s education early. Cost rises every year.

Use long-term equity mutual funds with goal tagging.

Have a separate retirement plan for you and spouse.

If your spouse is working, ensure proper saving in her name too.

Use SWP in future from mutual funds for monthly income after retirement.

PPF and EPF alone may not be enough for retirement.

Combine with mutual fund retirement planning tools.

Tax Efficiency Planning
You need to be smart about taxes too.

New rules say equity mutual fund LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG is taxed at 20%. So avoid frequent withdrawals.

Debt mutual fund gains taxed as per your income slab.

Use tax saving options like ELSS (Regular Plan), PPF, and life insurance term plan.

Avoid unnecessary insurance-linked plans. They give poor post-tax returns.

Work with a Certified Financial Planner to make yearly tax plan.

Financial Protection and Legal Setup
Make sure you and your spouse have term insurance if dependents are there.

Make a Will. This gives clarity to your children in future.

Ensure all investments have nominee updated.

Open a joint bank account for flexibility and easy access.

Have a small emergency fund of at least 6 months' expenses.

This helps during job loss, medical issues, or big emergencies.

Keep this in liquid funds.

Finally
You are already doing well in parts. That needs to be appreciated.

You are consistent and serious with your goals. But some parts need strong correction.

Avoid over-allocation in sector mutual funds. Move to more balanced funds.

Stop insurance-based investment plans. They give very poor returns.

Reinvest in mutual funds (regular plans only) with help of a Certified Financial Planner.

Increase debt allocation. Add financial gold only. Reduce physical gold buying.

Make goal-based plan for education, retirement, and family protection.

Tax plan and legal readiness must be in place too.

Keep things simple. Review and refine regularly. That’s how wealth grows.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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