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Ramalingam Kalirajan |10870 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 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

Asked by Anonymous - Aug 20, 2025Hindi

Hi i m P Kumar 41 years of age. Salary:20 LPA. MF corpus:50 lac, sip:44000 pm.FD: 20 LAC , PF:26 LAC, GRATUITY:1.5 LAC, STOCK PORTFOLIO: 9.5 LAC, BANK BALANCE:13 LAC .I want to retire by 58 with monthly income of 2 lac pm. Pls let me know whether i m on right track .

Ans: – You have built Rs 50 lakh mutual fund corpus already.
– Rs 44,000 SIP every month shows strong commitment.
– FD of Rs 20 lakh gives stability and safety.
– PF balance of Rs 26 lakh adds retirement security.
– Rs 9.5 lakh stock portfolio shows risk appetite.
– Rs 13 lakh bank balance gives liquidity.
– You are in a good financial position at 41.

» Understanding your goal
– You want to retire by 58.
– That gives you 17 years of accumulation time.
– You target Rs 2 lakh monthly income post-retirement.
– This means you want financial independence.
– The focus is to create stable income without stress.

» Assessing your present portfolio
– Mutual funds are your strongest wealth builder.
– SIP of Rs 44,000 ensures growth every month.
– FD of Rs 20 lakh is safe but returns are low.
– PF is growing with compounding till retirement.
– Stock portfolio is small but adds growth potential.
– Bank balance of Rs 13 lakh is large for emergency.

» Strengths in your plan
– High saving capacity due to good salary.
– Regular SIPs which will grow with compounding.
– Mix of equity, debt, and safe instruments.
– Adequate liquidity through bank balance.
– Strong PF base for retirement corpus.

» Areas of improvement
– Too much money in FD and bank account.
– FD and bank balance reduce real growth after inflation.
– You should move excess balance into mutual funds.
– Emergency fund of 6–8 months is enough in bank.
– Rest should be invested in growth assets.

» Concerns about direct funds
– If your SIP is in direct funds, risks exist.
– Direct funds look cheaper, but lack expert guidance.
– Mistakes in fund selection can affect returns.
– Regular plans through Certified Financial Planner give ongoing support.
– You get reviews, rebalancing, and timely advice.
– Long-term wealth requires such handholding.

» Importance of diversification
– Rs 50 lakh corpus in mutual funds is strong.
– Ensure you have a mix of large, mid, and flexi cap funds.
– Balanced funds can reduce volatility.
– Avoid over-concentration in small-cap or sector funds.
– Debt allocation in hybrid funds can give stability.

» Stock portfolio management
– You have Rs 9.5 lakh in stocks.
– Keep exposure limited to avoid high risk.
– Stocks need regular review and monitoring.
– If not tracking, shift slowly into mutual funds.
– Professional fund managers handle volatility better.

» PF and retirement advantage
– PF gives safe growth and tax-free withdrawal.
– This corpus will act as guaranteed income base.
– It balances risk from equity market fluctuations.

» Tax planning for future
– When you redeem mutual funds after 1 year, LTCG applies.
– LTCG above Rs 1.25 lakh yearly is taxed at 12.5%.
– STCG below one year is taxed at 20%.
– Debt funds are taxed as per your slab.
– So plan redemption timing carefully.
– With proper tax planning, you can save more.

» Retirement income creation
– Rs 2 lakh monthly income needs strong retirement corpus.
– Combination of equity funds, hybrid funds, PF, and some FD will support.
– You should maintain 30–40% in equity even after retirement.
– This will fight inflation and keep income growing.
– Remaining in debt instruments will give stability.

» Inflation and lifestyle factor
– Rs 2 lakh today will not be Rs 2 lakh after 17 years.
– Inflation reduces value of money every year.
– You must build higher corpus to cover inflation.
– Hence your savings rate is good, but must continue consistently.
– Review every few years to check gap.

» Insurance protection
– You did not mention life or health insurance.
– Term insurance is a must till retirement.
– Health insurance beyond employer cover is also needed.
– Insurance ensures your family is safe if any risk happens.

» Emergency planning
– Your bank balance is higher than needed.
– Keep around 6–8 months of expenses in liquid form.
– Use liquid fund or sweep-in FD.
– Deploy extra amount into mutual funds for higher growth.

» Role of PPF and gratuity
– You already have PF and PPF is optional.
– Gratuity is small now but will grow over service.
– At retirement, gratuity adds to corpus safely.

» Importance of regular review
– Retirement planning is not a one-time task.
– Markets change, income changes, expenses change.
– Review your plan every year.
– Rebalance mutual funds if needed.
– Review SIP allocation once in 2–3 years.
– Certified Financial Planner can help in continuous monitoring.

» Risk management in retirement
– Do not move all money to debt after retirement.
– Equity will fight inflation even after age 58.
– Hybrid strategy is safer than full equity or full debt.
– You must withdraw in a planned manner.

» Finally
– You are already on the right track.
– Strong savings, disciplined SIPs, and good asset mix are visible.
– Reduce idle bank balance and excess FD slowly.
– Keep insurance protection intact.
– Keep increasing SIPs with salary hikes.
– Review plan yearly with a Certified Financial Planner.
– With consistency, you can achieve Rs 2 lakh monthly income at retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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