Hi, I have no MF investments as of now. Some NPS Tier1 investments only. I want to make a lumpsum invest of 10L for 5 years plus. Please advise which MF schemes to invest in.

Ans: At 45 years of age, with two growing daughters, you are right to think about a solid and secure future for them. Your savings, PPF, and plot ownership show a good foundation. Let’s now plan a 360-degree approach for a secure financial future for your daughters.

Below is a detailed plan for your financial roadmap, explained in simple terms. Each part addresses a specific need and goal for your family.

1. Secure Your Emergency Fund First

Keep at least 6 months of your salary as emergency savings.

 

This money should stay in a safe place like a bank or liquid mutual fund.

 

Do not invest this money in risky or locked-in options.

 

This helps during job delays, medical needs, or any sudden expenses.

 

2. Review and Strengthen Health Insurance Cover

You need a good health policy for yourself and your family.

 

A cover of Rs. 10 lakh or more is recommended today.

 

Medical expenses are rising faster than income.

 

Your daughters should also be part of this family cover.

 

Always prefer a separate health policy and not just the government-provided facility.

 

3. Review Your Life Insurance Coverage

Only pure term insurance should be considered.

 

Avoid plans that mix insurance with investments.

 

Your term cover should be at least 10 to 15 times your yearly salary.

 

This ensures your family’s lifestyle and dreams remain safe.

 

4. Continue with PPF Investment Smartly

Your PPF of Rs. 15 lakh is a solid base.

 

Continue small yearly deposits till maturity.

 

Use PPF mainly for your retirement.

 

Don’t touch this for your daughters' education.

 

5. Assign Goals: Education and Marriage Planning

Your elder daughter is 13. Education expenses will start in 5 years.

 

Your younger daughter is 8. You have 10 years for her needs.

 

Start goal-based investments. Separate plan for education and marriage.

 

Don’t mix both goals under one investment.

 

6. Use Mutual Funds to Grow Your Wealth

Choose diversified equity mutual funds for long-term goals.

 

These give better returns than savings or traditional policies.

 

SIP (Systematic Investment Plan) is a good method.

 

Start SIPs for both daughters in different folios.

 

Equity mutual funds suit education and marriage timelines.

 

7. Choose Regular Plans Over Direct Plans

Regular plans come with the help of trained experts.

 

A Certified Financial Planner with an MFD license helps guide you better.

 

Direct plans don’t give guidance or personal support.

 

Many investors make poor decisions with direct funds.

 

8. Avoid Index Funds for These Goals

Index funds follow the market, good or bad.

 

They can fall as much as the market.

 

They don’t try to beat the market returns.

 

For children’s future, you need stable and active management.

 

Actively managed funds handle risk better over long periods.

 

9. Assess the Value of the Plot

You already own a plot worth Rs. 50 lakh.

 

Do not consider more investment in land or property.

 

Real estate is not liquid. It cannot help during emergencies.

 

Hold the plot but do not add more to real estate.

 

If needed in future, you can sell or use it smartly.

 

10. Plan for Daughters’ Higher Education

Higher education costs are rising fast in India and abroad.

 

A mix of SIP in mutual funds and recurring deposits helps.

 

Create two separate mutual fund goals, one for each daughter.

 

Start with SIPs and increase every year by 10%.

 

11. Plan for Their Marriages Later

After education, marriage planning is your next step.

 

Avoid investing in gold chits or jewellery now.

 

Gold prices are unpredictable.

 

Use long-term mutual funds instead.

 

Shift investments to low-risk options 2-3 years before the goal.

 

12. Don’t Mix Investment with Insurance

If you have ULIPs or endowment policies, review them.

 

Most give low returns and high charges.

 

They lock your money for many years.

 

Pure investment should stay separate from life cover.

 

Only term plan is good for insurance needs.

 

13. Retirement Should Not Be Ignored

Retirement is your longest financial goal.

 

Don’t use PPF or savings for daughters’ expenses.

 

Your income stops in retirement. But expenses will continue.

 

Use a part of surplus to invest for retirement too.

 

14. Tax Planning with Investments

Use mutual funds that qualify under 80C only if they fit your goals.

 

PPF, term insurance, and ELSS can help save tax.

 

Don’t invest just to save tax. Purpose matters more.

 

15. Revisit Your Financial Plan Every Year

Every year, review your goals and investments.

 

Goals change with time and family needs.

 

Adjust your SIPs and increase your savings each year.

 

Don’t stop SIPs if the market falls. Stay invested.

 

16. Include Your Spouse in Financial Decisions

Share your financial plan with your spouse.

 

Let her know the goals, investments, and insurance details.

 

Keep documents safely with access to family.

 

This builds joint responsibility and awareness.

 

17. Maintain Nomination and Will

Nominate your spouse or daughters in all investments.

 

Make a basic Will to avoid future legal issues.

 

Mention plot, savings, PPF, and mutual funds clearly.

 

A Will ensures smooth transfer of wealth to your family.

 

18. Use the Right Mix of Risk and Safety

For long-term goals, equity gives good growth.

 

For short-term needs, use safer options.

 

Balance your portfolio every 2-3 years.

 

Take help from a Certified Financial Planner for a full plan.

 

19. Teach Your Daughters Financial Habits

Slowly teach them about saving and spending.

 

Make them part of small budget talks.

 

Teach them how money works early in life.

 

This builds their future independence.

 

20. Keep Financial Simplicity in Mind

Use fewer investment products.

 

Track them regularly.

 

Avoid complicated insurance or schemes.

 

Simpler portfolio is easier to manage.

 

Finally

You are on the right path with savings, PPF, and plot.

 

Now, shift focus to mutual fund SIPs for future goals.

 

Take proper life and health cover without delay.

 

Do not mix insurance and investment.

 

Prioritise education goals before marriage goals.

 

Review and act every year. Adjust as per your income and needs.

 

Keep investments simple, goals separate, and planning disciplined.

 

Financial discipline today will gift freedom to your daughters tomorrow.

 

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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