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Matured FD - What now?

Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 23, 2024

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 - Jul 24, 2024Hindi
Money

Dear Mihir I have an FD matured now and have 10 lakh in hand. I do not want to go for FD again or i do not want to try my hand in shares. Can you give me an investment plan with better returns?

Ans: With Rs 10 lakh in hand, you have a great opportunity to grow your wealth. Since you prefer not to reinvest in fixed deposits or the stock market, mutual funds offer an excellent alternative. They provide better returns compared to FDs while being less volatile than direct shares.

Understanding Your Investment Goals
Before diving into mutual funds, it’s crucial to outline your financial goals. Are you looking for short-term gains or long-term growth? Your investment horizon will guide the type of mutual funds you should consider.

Short-Term Goals: If you need the money within the next 3-5 years, consider funds that focus on stability.

Long-Term Goals: For goals that are 5 years or more away, you can opt for funds that have higher growth potential.

Why Mutual Funds Are a Smart Choice
Mutual funds offer several advantages over traditional FDs and direct shares:

Higher Returns: Mutual funds typically offer higher returns compared to FDs. This is especially true for equity and hybrid funds.

Professional Management: Your money is managed by experts who make informed decisions to maximize returns.

Diversification: Mutual funds spread your investment across different sectors and assets, reducing risk.

Choosing the Right Type of Mutual Funds
Depending on your goals and risk appetite, you can choose from various types of mutual funds:

Equity Funds: These are ideal for long-term growth. They invest in stocks, offering higher returns over time. If your goal is wealth creation over a period of 5-10 years or more, equity funds are a good option.

Debt Funds: If you prefer stability and lower risk, debt funds invest in fixed-income securities like bonds. They are less volatile and provide moderate returns, making them suitable for shorter investment horizons.

Hybrid Funds: For a balance between growth and stability, hybrid funds invest in both equity and debt. They aim to provide higher returns than debt funds while being less risky than pure equity funds.

Benefits of Actively Managed Funds
When it comes to mutual funds, actively managed funds offer several benefits:

Potential for Higher Returns: Fund managers actively seek out opportunities to outperform the market, aiming to deliver better returns.

Adaptability: These funds can adjust their strategy based on market conditions, offering a more dynamic approach to investing.

Avoiding Direct Shares and Fixed Deposits
Since you’ve expressed a preference against direct shares and FDs, mutual funds are a middle ground that offers the best of both worlds:

Less Volatility: Unlike direct shares, mutual funds offer diversification, which reduces the risk of losing money.

Better Returns than FDs: While FDs offer guaranteed returns, they are typically lower than the returns from mutual funds, especially in the long term.

Systematic Investment Plan (SIP) and Lump Sum Investment
With Rs 10 lakh at your disposal, you have the option to invest in mutual funds in two ways:

Lump Sum Investment: You can invest the entire Rs 10 lakh at once. This is ideal if you’re confident about the current market conditions and have a long-term horizon.

Systematic Investment Plan (SIP): Alternatively, you could invest in smaller amounts over time. SIPs reduce the risk of market timing and provide the benefit of rupee cost averaging.

Tax Efficiency
Mutual funds also offer tax benefits:

Equity-Linked Savings Scheme (ELSS): ELSS funds not only provide potential for high returns but also offer tax deductions under Section 80C.

Long-Term Capital Gains (LTCG): Gains from equity funds held for over a year are taxed at a lower rate, making them more tax-efficient than other investment options.

Regular Monitoring and Review
Once you’ve invested, it’s important to regularly review your portfolio:

Annual Review: Check the performance of your funds at least once a year. Ensure they align with your goals.

Adjust if Needed: If your financial goals change, you may need to adjust your investment strategy. This could involve switching funds or rebalancing your portfolio.

Insurance as a Safety Net
While focusing on investments, don’t overlook the importance of insurance:

Life Insurance: Ensure you have adequate life insurance to protect your family’s future.

Health Insurance: A good health insurance plan prevents medical emergencies from derailing your financial goals.

Final Insights
Investing Rs 10 lakh in mutual funds is a wise decision. With better returns than FDs and less volatility than direct shares, mutual funds provide a balanced approach to growing your wealth. Choose funds that align with your goals, and consider a mix of equity, debt, and hybrid funds. Regularly monitor your investments and adjust as needed to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hello Hemant, Greetings. Request a serious suggestion on my investment planning. Have majority of my savings into FDs due to my earlier conservative approach and even now am having the tax benefit as the FDs are on my wife's name where we do get the tax benefit. Also started significant portion into MFs which is a portfolio by itself of nearly 50 lac INR. My question is, I want to plan for my younger son's future and our retirement which almost have the same time duration of about 12-13 years. How can I go for my investment if am looking for around 5-7 crore of corpus by then ? What options could you provide me assuming I do have good risk apettite now as I have seen a good 5 year cycle in the MFs now. I want you suggest 2 options, 1 - With a fresh investment now and the products which I should go around and 2 - If you advise to use the fixed deposits also to contribute to the wealth creation ( I have a total of around 60-70 lac as FDs). So please suggest a good portfolio with the above 2 scenarios.
Ans: Given your risk appetite and investment horizon of 12-13 years, here are two investment strategies to achieve a corpus of 5-7 crore:

Option 1: Fresh Investment

Equity Mutual Funds: Allocate 60% of the portfolio (30 lac) to diversified equity mutual funds with a proven track record.
Direct Equity: Invest 20% (10 lac) directly in blue-chip stocks or through a well-researched stock portfolio.
Debt Mutual Funds: Allocate 10% (5 lac) to debt funds for stability and to balance the portfolio.
Gold or Gold ETFs: Allocate 10% (5 lac) to gold as a hedge against market volatility and inflation.
Option 2: Utilizing FDs

Equity Mutual Funds: Transfer 50% of the FDs (30-35 lac) into diversified equity mutual funds.
Debt Mutual Funds: Transfer 30% (20-25 lac) to debt funds for stability.
Direct Equity: Invest 10% (5-7 lac) directly in blue-chip stocks or a stock portfolio.
Gold or Gold ETFs: Allocate 10% (5-7 lac) to gold.
Regularly review and rebalance the portfolio to maintain the desired asset allocation. Consider SIPs for equity investments to take advantage of rupee-cost averaging. Consult with a Certified Financial Planner to tailor the investment strategy to your specific needs and objectives.

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Financial Planner - Answered on Sep 20, 2023

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Hello Sanjeev, Good afternoon. Request a serious suggestion on my investment planning. Have majority of my savings into FDs due to my earlier conservative approach and even now am having the tax benefit as the FDs are on my wife's name where we do get the tax benefit. Also started significant portion into MFs which is a portfolio by itself of nearly 50 lac INR. My question is, I want to plan for my younger son's future and our retirement which almost have the same time duration of about 12-13 years. How can I go for my investment if am looking for around 5-7 crore of corpus by then ? What options could you provide me assuming I do have good risk apettite now as I have seen a good 5 year cycle in the MFs now. I want you suggest 2 options, 1 - With a fresh investment now and the products which I should go around and 2 - If you advise to use the fixed deposits also to contribute to the wealth creation ( I have a total of around 60-70 lac as FDs). So please suggest a good portfolio with the above 2 scenarios.
Ans: Based on your query, we understand that you are looking for investment options to plan for your younger son’s future (Education and Marriage) and your retirement life. You have mentioned that both goals have a similar time duration of about 12-13 years. You also mentioned that you have a good risk appetite now and have seen a good 5-year cycle in mutual funds (MFs).

To achieve a corpus of around Rs 5Cr by then, we have evaluated both the options:-

Option 1: Fresh Investment: This is the most recommended option from our end as considering your investment horizon and knowledge, we suggest you to rebalance your current fixed income oriented investments to equity orient funds with 20-25% allocation towards mid and small caps.
Benefits on shifting:
• Lower tax liability on returns generated.
• Tax deferment and compounding (higher returns) in long run.

Option 2: Continuing with Fixed Deposits (FDs) (Not suggested by us)
As you know, FDs are very safe asset class and yielding higher returns due to current interest rate scenario. Although, we all know sooner and later rates will came down to support the economy so does the FD rates.
Also, FDs as investment are not considered good for horizon of more than 5 years because:
a) Yearly taxation reduce the compounding and returns.
b) Equity generally outperform in terms of returns over the same horizon.

Final Recommendation:
We suggest you to shift 30-40 Lakhs from FDs and reinvest the same in a well-diversified portfolio of Equity and hybrid funds. Also, considering your goal of reaching a corpus of 5cr with current mutual fund investments it will require whopping returns of 20%+ on annual basis for a period of 12-13 years which is not very likely to achieve.

As a summary, allocate a total of Rs 80-90 Lakhs towards diversified equity-oriented funds and keep invested Rs 20-30 Lakhs in FDs in your wife’s name for taxation benefit.

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Sir, I am 78 yrs. I have my present investments in FD about 60 lacs fetching around 8% p.m. I need atleast 10- 12 % return to match my budget. What or which mutual fund and scheme , I need to pursue . Pls advise me , I will be thankful.
Ans: At 78, ensuring your investments provide a stable income is crucial. While FDs offer safety, they might not always provide the returns you desire, especially considering inflation and the need for higher returns to match your budgetary needs.

Considering your age and need for higher returns, you might want to consider Debt Mutual Funds or Balanced Advantage Funds. Debt Mutual Funds predominantly invest in fixed-income securities and can offer better returns than FDs with a moderate risk profile. On the other hand, Balanced Advantage Funds dynamically manage equity-debt mix based on market conditions, aiming for consistent returns.

However, Mutual Funds, even debt funds, come with some risk. They are subject to market fluctuations, and while they aim to provide better returns than FDs, they might not always guarantee fixed returns.

Given your situation, consulting with a Certified Financial Planner would be highly beneficial. They can assess your risk tolerance, financial needs, and recommend a suitable investment strategy tailored to your requirements.

Remember, while aiming for higher returns, it's also essential to maintain a balance between risk and returns, ensuring your investments align with your financial goals and peace of mind in retirement.

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Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 14, 2024

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Hi Sir, need a plan for next 5years from you to invest 50lakhs and monthly 50k.. which will give me more returns than FD.. most preferred is sharemarket mutual funds and shares .. please give me guidance
Ans: Investing Rs. 50 lakhs upfront and an additional Rs. 50,000 monthly shows your commitment to growing wealth. Your preference for share market mutual funds and stocks is a smart approach, given the goal to outperform fixed deposits (FD). Here’s a detailed strategy designed to offer you higher returns over the next five years.

1. Key Considerations for a 5-Year Investment Horizon
Since you’re targeting a 5-year period, we’ll focus on growth assets that balance risk and reward. This includes equities and mutual funds while maintaining diversification to reduce volatility.

Balancing Growth and Stability: For higher returns than FDs, equity investments are ideal. We will, however, balance these with some debt allocation to manage risk.

Using Mutual Funds Over Stocks Alone: Mutual funds offer professional management and diversification, which can be beneficial over stocks for a short 5-year window.

Focus on Actively Managed Funds: Actively managed funds can outperform the market over a medium-term horizon, as managers adjust holdings based on market conditions. This can be especially useful in a 5-year window.

2. Investment Allocation Strategy
Lump Sum Investment (Rs. 50 Lakhs)
For the Rs. 50 lakhs lump sum, we’ll use a diversified portfolio across different types of mutual funds and assets. This portfolio will be structured to balance both high growth and moderate risk.

Equity Mutual Funds: Allocate a substantial portion to actively managed equity funds. These funds are designed to capture market growth and are managed by experts to optimize returns.

Large Cap Funds: Large-cap funds are stable, as they invest in established companies. They provide resilience against market volatility, making them ideal for a 5-year period.

Flexi Cap Funds: Flexi cap funds allow the fund manager to switch between large, mid, and small caps. This flexibility can be beneficial, especially in fluctuating markets.

Mid Cap Funds: Mid-cap funds can add growth potential, as they invest in emerging companies. However, they carry higher risk, so we’ll limit exposure.

Avoid Index Funds: While index funds have lower fees, they lack active management. In a volatile market, they may not adjust in time to protect gains. Actively managed funds, on the other hand, allow for flexible adjustments to capture opportunities and avoid downturns.

Balanced Funds: Consider investing in hybrid funds or balanced advantage funds. These funds balance equity with debt exposure, adjusting allocations based on market conditions. This can provide stability and help reduce overall portfolio risk.

Debt Funds: A small portion in debt funds will add a layer of safety. Debt funds are less volatile and can cushion your portfolio during market downturns.

Monthly SIP (Rs. 50,000)
For your monthly SIP of Rs. 50,000, we’ll follow a systematic investment approach in mutual funds. This allows you to benefit from rupee cost averaging, minimizing the impact of market volatility.

Large Cap SIP: Allocate a portion to large-cap funds to build a stable core for the SIP portfolio. Large-cap funds provide steady growth and resilience.

Mid and Small Cap SIP: Allocating to mid and small-cap funds in SIP format allows you to buy more units when prices are low. These segments may experience volatility, but SIPs can mitigate some risk over the long term.

Avoid Direct Funds: Direct funds might save you on expense ratios, but they lack the guidance of a Certified Financial Planner (CFP). Regular funds through a CFP ensure that your portfolio is closely monitored, with adjustments made when necessary. This approach can help maximize returns and minimize risk, especially in changing markets.

3. Tax Considerations for Mutual Funds
To maximize post-tax returns, understanding tax implications on mutual fund gains is essential.

Equity Mutual Funds: For equity mutual funds, long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. Short-term gains (STCG) are taxed at 20%.

Debt Funds: Gains from debt funds are taxed according to your income slab, regardless of holding period. A CFP can help you strategize to minimize this tax burden.

Efficient Rebalancing: A CFP can guide on tax-efficient rebalancing strategies, helping you achieve goals while keeping tax liabilities manageable.

4. Portfolio Rebalancing and Review
To keep your portfolio aligned with market conditions and goals, regular reviews are vital. Reviewing every six months or annually ensures underperforming funds are replaced.

Regular Monitoring: A CFP will review your portfolio’s performance and suggest changes as needed. This ensures you capture growth and protect gains effectively.

Adjusting for Market Trends: Market conditions can vary, so adjusting allocations based on prevailing trends can maximize returns. A CFP can make these adjustments without deviating from your long-term goals.

5. Benefits of Working with a Certified Financial Planner (CFP)
By investing through a CFP, you benefit from professional guidance, customized strategies, and ongoing support.

Expert Portfolio Management: A CFP can craft a portfolio tailored to your risk tolerance and goals, enhancing your chance of achieving optimal returns.

Strategic Adjustments: A CFP provides active fund management, timely reviews, and tax-efficient rebalancing. This ensures you maximize returns over your investment horizon.

Emphasis on Goal-Driven Investing: A CFP will ensure your investments are aligned with your specific needs, such as higher returns than FDs, by carefully selecting and monitoring funds.

Final Insights
With a strategic mix of equity, balanced, and debt funds, you can build a high-performing portfolio for the next five years. SIPs, combined with a well-diversified lump sum investment, can help you achieve steady growth and minimize risks.

A Certified Financial Planner can help guide your investments and make necessary adjustments, ensuring your portfolio remains aligned with your goals. This personalized approach can provide you with higher returns than FDs while maintaining a balanced risk profile.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
Hi, I am 41, salaried with 2 kids (elder one in 8th standard and younger one in Nursery) and earning 2.5 Lakh per month from private IT job. I have 4 dependents including spouse and mother. I have approx. 70 lakhs savings so far in different savings account, but no FD. Around 33 Lakhs in EPF and approx 10 L in PPF (1.5 LPA). A 100sq yard empty plot in rural area worth 15 Lakh (approx 12 km away from current address in Faridabad and school bus facility is not available there). I have paternal small agriculture land in Meerut, approx. 900 sq yard. No other savings or assets. I wanted to buy residential property in urban area but it seems out of reach now and I do not see any value in spending all my savings in small 2 bhk apartment. Here are my monthly expenses - 28K rent related - 20k school fee and tutions - 15k monthly grocery - 2k internet (for tv and home office) - 10k car petrol (3 days weekly office travel to Noida- metro takes additional half an hour to reach office due to indirect connectivity) - around 30k in quarter for family entertainment and other purchases - giving 6K every month to wife and mother for their personal expenses (total 12 k) - additional mediclaim of 27k per month, 50 L SI - free company mediclaim of 10L SI - free company insurance of 50L , but no person insurance I am interested in buying agricultural land of 30 Lakh in my father's village but my lunch has not been great in property investments so far (no gain, just loss). So, I am confused and just trying to save money in bank accounts for my kids. Shall I buy apartment or it's fine to stay in rental property for long time? For unplanned retirement, I can get my rural plot constructed for emergency, right? I believe investment in agriculture land will be better rather than buying apartment or something else. But I get this thought from time to time that I am on a rented property, not my own. Then I think its better to do FD of 70 Lakh and enjoy the interest for easy worry free life. Please share some advise what shall I do to save money safely and wisely.
Ans: You are 41, earning Rs?2.5?lakhs per month with spouse, mother, and two school-aged children. You have Rs?70?lakhs in savings, plus Rs?43?lakhs in EPF/PPF. You also own rural plots but no urban home. You have recurring rent and family expenses. Let’s take a clear 360?degree look at your situation and chart a reliable path forward.

? Clarify Your Goals and Timelines
– Monthly rent, kids’ education, retirement, and own home are key goals.
– Rank them by importance and by when funds are needed.
– Own home may take 5–7 years; education is nearer.

A clear goal list helps choose right investments and timeline.

? Analyse Monthly Cash Flow
– Rent: Rs?28k
– School & tuition: Rs?20k
– Groceries: Rs?15k
– Internet: Rs?2k
– Petrol: Rs?10k
– Entertainment: ~Rs?10k
– Personal allowances: Rs?12k
– Mediclaim premium: Rs?27k

Total: ~Rs?1.24?lakhs (excludes utilities/savings).

This leaves ~Rs?1.26?lakhs per month for investment, savings, and discretionary spending.

? Emergency Fund Status
– You hold Rs?70?lakhs, but none in liquid safety.
– Ideal emergency buffer is 6–12 months of household expenses.
– That is approx Rs?8–10?lakhs.
– Keep this in liquid or ultra?short term mutual funds.

? Deploy Savings Efficiently
– Don’t leave Rs?70?lakhs idle in savings; returns are very low.
– Distribute across safety, medium, and growth buckets:

Safety: Rs?10?lakhs in liquid funds

Medium-term: Rs?15?lakhs in short/mid?duration debt funds

Long-term growth: Remaining Rs?45?lakhs into equity-oriented mutual funds

This ensures extended stability, goal funding, and growth.

? Children’s Education Planning
– Elder is in 8th grade; younger is in nursery.
– Education expenses escalate in higher studies.
– Estimate combined future costs in the next 5–10 years.
– Create dedicated monthly SIPs for each child.

Child?1 goal requires medium?term growth

Child?2 goal allows longer horizon (10–12 years)

Use actively managed equity funds so fund managers adjust with market cycles.

? Own Home vs Renting
– Urban home is out of reach now; better to continue renting.
– Renting gives flexibility, less maintenance burden.
– Apartment purchase may overextend your savings and impact education/retirement.

Renting stays fine until you have 30–40% home cost in savings, plus surplus for education.

? Estate and Construction Plan
– You mentioned constructing on rural plot as emergency fallback.
– Building on rural land may draw permission and utility challenges.
– Also, it may tie up capital and reduce liquidity.

Better to rely on liquid savings for emergency housing needs.

? Agricultural Land Investment
– Farming land may provide future value but no income now.
– It also isn’t liquid or usable immediately.
– Income from land is uncertain.

Its value isn’t clear and is hard to monetize. It's better held alongside diversified financial investments.

? Asset Allocation for Growth
– Equity funds offer potential to beat inflation.
– Debt funds offer stability for medium-term goals.
– EPF/PPF are safe pillars.

Your mix now: 45% growth (equity), 35% stability (debt and PPF/EPF), 20% liquidity.

Rebalance each year towards target mix.

? Importance of Actively Managed Funds
– Index funds track markets rigidly.
– They can underperform in downturns or miss themes.
– Actively managed funds adapt sector exposures.
– Managers can protect downside and pursue growth themes.

Especially useful when funding education, retirement, or home purchase.

? Direct Funds vs Regular Funds
– Direct funds save small fees but give zero guidance.
– Regular funds via Certified Financial Planner provide expert support, emotional discipline, and rebalancing advice.
– This guidance is valuable over decades.

? EPF and PPF Overview
– EPF continues via salary deductions; it's safe and grows.
– PPF offers tax?free return and can complement retirement corpus.
– Let EPF and PPF run until maturity.
– Use rising savings (house, investment) to balance with more equity.

? Retirement Planning Next Steps
– You still have ~19 years until retirement at 60.
– Required corpus must support spouse and children during and after your life.
– Start separate SIP of Rs?25–30k monthly into diversified equity funds.
– This stream builds a long?term corpus for retirement.

? Tax Planning Strategy
– EPF contributions offer 80C deduction.
– PPF contributions also qualify under 80C.
– SIP in ELSS (if used) gives tax deduction but has 3?year lock?in.
– Equity withdrawals: LTCG above Rs 1.25 lakh taxed at 12.5%; STCG at 20%.
– Debt fund gains are taxed per your slab.

Plan investment and withdrawal timing to optimise taxes per year.

? Insurance Coverage Check
– Company offers free mediclaim 50L and life insurance 50L.
– You also spend Rs?27k monthly on additional cover.
– Re-evaluate premium if overlap exists.
– Take a separate pure term plan for yourself of 50–75L.
– Ensure your family has financial protection beyond employer policies.

? Monitoring and Review
– Schedule annual financial check-ins.
– Reassess goals, cash flow, investments, and insurance.
– Adjust contributions and asset allocations with life changes.
– A CFP will guide and correct behavioural biases.

? What to Avoid Now
– Avoid buying urban property now; it can stress your finances.
– Stay away from speculative farmland purchase.
– Avoid fixed deposits for large sums; returns are low.
– Don’t chase short-term stock tips or side income schemes.

Stick to a disciplined savings and investment approach.

? Summary of Key Actions
– Keep Rs?10?lakhs liquid as emergency fund.
– Allocate Rs?15?lakhs in debt funds for medium goals.
– Invest Rs?45?lakhs via SIPs in equity funds for long goals.
– Start separate SIPs:

Child education

Home purchase

Retirement corpus (~Rs?25–30k monthly)
– Buy individual term life cover and optimise mediclaim.
– Review portfolio every year with a CFP.

This gives goal clarity, financial safety, and growth potential.

? Finally
– You have stable income and significant savings.
– Owning a home is not mandatory now; renting is fine.
– Keep farmland, but don’t invest more.
– Financial assets are more flexible, safe and growth-oriented.
– Build multiple SIPs aligned to specific goals.
– Use actively managed, regular plan mutual funds.
– Protect yourself and dependents with term and health cover.
– Monitor and adjust the plan every year.

This 360?degree strategy helps your family stay secure and grow wealth.

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

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Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Money
Hey, I m 43 yrs old now, working as a freelancer earning around 2L per month, but don't know how long it will work and now not feeling to join any Job, I have a daughter and a son 12 and 6 yrs old respectively. Currently I am holding around 90L in stocks 5.5L in mutual fund with SIP of 50K per month. I own a house, which is debt free Also own a office space and a studio apartment which are rented out and getting around 33K from rent per month.(Both are debt free) Life Policies For LIC policy paying from last 12 years around 3.6L per annum need to for another 10 yrs I think so Hdfc life paid 2.5 per annum for 5 years and waiting for maturity. SBI life paid 1.5 per annum for 5 years and now waiting for maturity. Aditya Birla paying 25k from last 12 years need to pay it for another 18 years Bought a term life plan for 1.75cr and paying 5k per month. Currently I have a car loan and a loan against policy paying around 70K as a EMI per month it will get completed in next 2.5 years. Now my goal is to get 3L per month after 5-6 years. Please let me know how should I achieve this. Thanks
Ans: Your earnings, assets, and goals show you are disciplined and proactive. Let us look at your situation in depth—covering all angles and offering insights that shape a solid path forward.

? Current Financial Snapshot
– Age 43, freelancer, earning around Rs.?2 lakh per month.
– Family: Daughter (12) and son (6).
– Holding Rs.?90 lakh in direct equity stocks.
– Mutual fund investments worth Rs.?5.5 lakh.
– SIP of Rs.?50,000 per month into mutual funds.
– Owns a debt?free home, office space, and studio apartment.
– Rental income of Rs.?33,000 per month.

? Insurance and Loan Overview
– LIC policy premium Rs.?3.6 lakh per annum, continues for 10 more years.
– HDFC Life policy premium Rs.?2.5 lakh per annum, 5 years left.
– SBI Life policy premium Rs.?1.5 lakh per annum, 5 years left.
– Aditya Birla policy premium Rs.?25,000 per annum, 18 years remaining.
– Term life insurance cover Rs.?1.75 crore, premium Rs.?5,000 per month.
– Car loan and loan against policy: EMI Rs.?70,000 per month, ending in 2.5 years.

Your goals: To receive Rs.?3 lakh per month in income after 5–6 years. Let us break down your plan with professional insight.

? Strengths in Your Setup
– Debt?free real estate assets provide passive income and safety.
– You have strong equity holdings for growth potential.
– SIP of Rs.?50k monthly shows systematic investing behaviour.
– Term insurance provides robust life protection.
– Rental income adds stable, recurring cash flow.
– You have clear income goals and timeframe.

Your structure is built on robust foundations. You have the potential for reliable financial freedom.

? Key Challenges to Address
– High exposure to direct stocks (Rs.?90 lakh) increases risk and requires active management.
– Low mutual fund base relative to equity exposure may limit diversification benefits.
– Insurance?linked savings policies with heavy premiums limit fund allocation flexibility.
– EMI of Rs.?70k is delaying capital growth until it ends.
– Freelance income can vary and may not last indefinitely.
– You need to plan for higher income needs in 5–6 years to reach Rs.?3 lakh monthly.

? Goal Definition: Rs.?3 Lakh Monthly Income
– You plan to retire or reduce activity by age 48–49.
– Your target is Rs.?3 lakh monthly sustainable income.
– Current passive income: Rs.?33k (rent) + planned SIP/withdrawal.
– Gap: You need about Rs.?2.7 lakh extra per month in 5–6 years.

To achieve this, you need to build a corpus that can sustainably generate Rs.?32.4 lakh per year. Assuming a safe withdrawal rate near 4–5%, you need a corpus of Rs.?6.5–8 crore by then.

? Fund Allocation Strategy – Balancing Growth and Stability
You need to grow your portfolio significantly while managing risk.

Increase mutual fund investments:
– Gradually rebalance direct stocks into actively managed mutual funds, including:
Large?cap, flexi?cap, multi?asset, balanced advantage.
– Avoid index funds—they cannot protect in market downturns.
– Active funds help adjust allocation, sector mix, and volatility.

Step up your SIP:
– Continue Rs.?50k monthly SIP.
– Each year increase by 10–15% to offset inflation and build corpus faster.

Use car/policy loan EMI savings well:
– When EMI ends in 2.5 years, redirect Rs.?70k monthly to SIPs or discretionary debt.

? Mutual Fund Selection – Validate and Simplify
You hold Rs.?5.5 lakh in mutual funds today. This needs scale and proper distribution.

– Keep only 5–6 high?conviction funds.
– Choose a mix of diversified equity and hybrid funds.
– Balanced advantage funds provide equity exposure with bond protection.
– Avoid sector/thematic funds. They are risky and reduce diversification.
– Continue via regular funds through MFD + CFP‍ for guidance and monitoring.

If any fund underperforms for more than two years, consider switching.
But do not stop SIP during a temporary correction.

? Equity Stocks – Risk Management Needs
Your equity exposure is strong but concentrated in direct holdings.

– Review top 20 holdings for quality, weight, and sector risk.
– If concentration is high in volatile sectors, rebalance into mutual funds.
– Use staggered selling to minimise capital gains tax and market impact.
– LTCG on equity above Rs.?1.25 lakh per year is taxed at 12.5%.
– STCG is taxed at 20%.

Keep direct stocks only if you can track performance and rebalance every year. Otherwise, mutual funds offer effective diversification.

? EMI Impact and Post?Loan Strategy
Your car and policy loan EMI of Rs.?70k monthly ends in 2.5 years.

Once EMI ends:

– Reinvest Rs.?70k monthly into your SIP basket.
– This alone can generate Rs.?2.5–3 crore over 10 years at consistent returns.
– Combined with stepped-up SIP, this positions corpus well for Rs.?3 lakh goal.

Ensure no immediate "lifestyle" spend after EMI ends. Redirect to wealth creation.

? Insurance?Linked Plans – Reevaluate and Reallocate
You hold multiple insurance investment policies (LIC, HDFC Life, SBI, Aditya Birla).

Suggestion:

– These plans give low net returns and lock-in.
– Since you already have term cover and health insurance, these are redundant.
– Consider surrendering them, if surrender value is acceptable.
– Use the freed-up premiums to invest in mutual funds for faster growth.

You need capital growth now. These insurance plans may limit you.

? Income Generation – Building a Sustainable Yield
Rental income of Rs.?33k is stable. But major income must come from investments.

In 5–6 years:

– Assume rental stays Rs.?33k/month (no growth).
– Monthly SIP (with step-ups) and corpus withdrawal/SWP could add Rs.?2 lakh.
– This helps reach Rs.?3 lakh goal.

Maintain a balanced asset allocation that generates both growth and yield.
Hybrid funds will provide dividends and capital appreciation.

? Emergency Fund and Liquidity Cushion
Your freelance income may fluctuate. Maintain buffer liquidity.

– Keep Rs.?6–8 lakh in ultra-short duration or liquid fund.
– Doesn’t earn much, but provides stability.
– Don’t use direct savings account for this.

This fund covers 3–4 months of expenses and cushions income dips.

? Child Education and Family Planning
You have two children. Plan their education separately.

– Son (12) needs funds in 6–8 years for higher studies.
– Daughter (6) needs funds in 12–15 years.
– Start two SIPs: one for each child’s education, separate from retirement SIP.
– Prefer a mix of flexi?cap and conservative hybrid funds.
– Do not dip into this fund for retirement or emergencies.

Separate goals, clear tracking.

? Inflation and Cash Flow Management
Current Rs.?3 lakh goal is good. But inflation will increase costs over time.

– Assume 6% inflation rate. Your target income may reach Rs.?5 lakh per month in 20 years.
– Continue SIP step?ups by at least 10–12% yearly.
– Rebalance portfolio every year with a Certified Financial Planner.
– Monitor healthcare costs as they rise faster than inflation.

Inflation diminishes real purchasing power. Plan accordingly.

? Freelance Income Risk – Insurance and Alternate Sources
Your income is freelance?based and variable.

– Consider income protection insurance (disability/critical illness).
– This protects you if you cannot work for extended periods.
– Consider building a small side income:

Online teaching, consulting, content writing

Skill monetisation in digital or workshops

A fallback income adds stability and financial freedom.

? Healthcare and Term Insurance Adequacy
You have term and multiple insurance covers. Check adequacy.

– Health insurance may need top-up to Rs.?10 lakh or more.
– Term cover of Rs.?1.75 crore is good. Review after policy-linked savings are surrendered.
– Consider raising cover if obligations increase post retirement.

Insurance secures your family’s future and gives financial peace.

? Regular Monitoring and Review Schedule
Your financial world will change. You must adjust accordingly.

– Set review meetings with a Certified Financial Planner every 6 months.
– Track these:

Portfolio returns and allocation

SIP performance and step-ups

Insurance needs

Cash flow and EMIs

Children’s education savings

Freelance income health

This discipline prevents drift and ensures you stay on track toward Rs.?3 lakh goal.

? Why Active Management is Crucial
Even if you think index funds are easy, they lack human oversight.

– Index funds blindly follow markets and can't reduce exposure in downturns.
– Actively managed funds adjust portfolio based on market conditions.
– They help manage downside risk—especially in retirement and goal?withdrawal phase.
– In long-term investment, active funds can deliver better risk?adjusted returns.
– Regular funds via MFD with CFP support guide you through market cycles.

Don’t be tempted by low-cost index funds when your goals require protection and discipline.

? Finally
– Your current position is strong, with assets and income.
– But risks include concentrated equity, heavy insurance savings, and income variability.
– By redirecting insurance savings toward mutual funds, you build faster.
– By stepping up SIP and reallocating EMI savings, you will reach your income goal.
– Maintain liquidity, child education funds, and insurance adequacy.
– Use actively managed and balanced funds.
– Review regularly with your Certified Financial Planner.
– Avoid fixed or complex investment schemes and farmland pitches.
– Build a side income to cushion freelance income risk.
– With discipline and monthly review, achieving Rs.?3 lakh per month in five years is realistic.

Your journey requires steady steps. You are well poised to achieve it with proper structure and support.

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

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Ramalingam

Ramalingam Kalirajan  |9749 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Money
Sir I am now 52 years old.My sip start from this years rs 6000 per month and I have swp of 3lac.I invest 1cr in kvp of post office.Moreover my two ppf are going to mature nxt year.Now what should be my investment goal and what should I do after maturity of ppf
Ans: You are 52 years old. You have started SIP of Rs 6,000 per month. You have a SWP of Rs 3 lakhs. You have invested Rs 1 crore in KVP of post office. You also have two PPF accounts maturing next year. You are moving in the right direction. Still, there is scope for better planning. Let us build a 360-degree plan.

? Understanding Your Current Financial Picture

– You are in the pre-retirement stage now.
– Retirement could be in the next 8 to 10 years.
– You have started SIP of Rs 6,000 per month.
– You hold a SWP of Rs 3 lakhs.
– Rs 1 crore is locked in KVP, which is a fixed return scheme.
– Two PPF accounts are maturing next year.

You have good financial base. But asset allocation needs balancing.
Let’s review your steps ahead carefully.

? Define Your Financial Goals Clearly

– First, identify your life goals from now to retirement.
– Most important will be retirement corpus creation.
– Second may be healthcare planning.
– Third could be child support or legacy planning.

If these goals are not written down yet, please do it now.
Each goal should have timeline and estimated need.

That helps you allocate funds better after PPF maturity.

? Emergency Fund is Always First

– Ensure that you have at least one year’s expenses kept aside.
– Keep it in liquid mutual funds or short-term options.
– Avoid touching long-term investments for sudden needs.

If not done yet, use a portion of PPF maturity to build it.

? Review the Rs 1 Crore KVP Investment

– KVP gives fixed return but no flexibility.
– You will have to wait till maturity to access funds.
– It is safe but returns barely beat inflation.

If you still have 5+ years to maturity, no issue.
But plan liquidity outside this for other needs.

Don’t depend on KVP for short or medium-term goals.

? Smart Use of Upcoming PPF Maturity

– PPF is a great debt product. It gives tax-free returns.
– Maturity of two accounts gives you a good opportunity now.

Avoid spending it casually. Don’t keep it idle in savings account.

Use the maturity amount as per these options:
– Allocate a portion for emergency fund if not yet created.
– Set aside part for upcoming 2–3-year needs in debt mutual funds.
– Invest balance in equity-oriented mutual funds for retirement.

Equity funds help fight inflation over 8–10 years.
You already started Rs 6,000 SIP. That is good.

Now you can boost this using PPF maturity money as lump sum.

Split this amount across 12–18 months using STP (Systematic Transfer Plan).
Don’t invest full lump sum in equity fund in one shot.

? Don’t Mix Insurance with Investment

– If you hold LIC endowment or ULIP, review carefully.
– If returns are below 5% and you don’t need cover, surrender them.

Reinvest that in mutual funds for long-term goals.
Pure term insurance and mutual fund combo is best.

You need protection but not with poor returns.

? Continue and Boost Mutual Fund SIPs

– Rs 6,000 SIP is a good start.
– But it may not be enough for retirement.
– Increase SIP every year by 10–15% if possible.

Also, once PPF matures, start new SIPs with that money.
Use actively managed equity mutual funds.

Avoid index funds. They follow the index blindly.

Index funds can’t reduce risk when market falls.
Actively managed funds give flexibility to move to better sectors.
They adjust portfolio as per market condition.

Also, avoid direct plans unless you can monitor it fully yourself.

Direct funds don’t give advice or reviews.
Better to go with regular plans through Certified Financial Planner.
This gives proper tracking and long-term guidance.

? Plan for Retirement Systematically

– You are 52. So you may have 8 years before retirement.
– It is not too late. But you must act fast.

Estimate how much you need post-retirement per month.
Factor in inflation. Your Rs 50,000 now may need Rs 1 lakh later.

You must build a corpus that can support 25–30 years after retirement.

Use mutual funds for this. A mix of equity and hybrid funds can help.
Increase SIPs. Reinvest maturity money wisely.
Review your plan every year with a Certified Financial Planner.

? Don’t Depend Only on Fixed Instruments

– Many people in their 50s prefer fixed deposits or post office schemes.
– These give safety but don’t beat inflation.

Over 20–30 years post-retirement, inflation eats value.
So you need growth along with safety.

That’s why mutual funds are needed now.
Especially equity-oriented and hybrid mutual funds.

They help grow your wealth and still give flexibility.

? Use SWP Strategy Carefully

– You have a SWP of Rs 3 lakhs.
– Understand why and how it is being used.

If it is being withdrawn from mutual fund, track tax impact.
Use only for planned needs. Don’t use SWP as regular income unless needed.

Instead, reinvest if it’s not being spent. Let it grow further.

? Tax Planning is Important

– Your PPF maturity is tax-free. That’s a plus.
– Mutual fund redemptions can be taxed.

For equity mutual funds:
– LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.

For debt funds, all gains are taxed as per income slab.
So plan withdrawals smartly. Avoid sudden full redemptions.

Split withdrawals across years to reduce tax burden.

? Health Cover and Long-Term Care

– At this age, health planning is very important.
– Check if you have personal health insurance.

Even if you have office cover, take personal plan.
Also consider top-up policy for high expenses.

Medical inflation is rising. Don't depend only on savings.
Health cover is protection against draining your investments.

? Estate Planning Must Start Now

– Create your Will. Mention all assets and beneficiaries.
– Keep all documents organised and updated.

This avoids legal issues later for family.
It brings peace of mind for you also.

Also consider nomination updates for bank, MF, and insurance.

? What Not to Do Now

– Don’t invest in real estate now.
– It locks your money and gives poor return.
– It needs maintenance and is not liquid.

Also, avoid taking new loans at this stage.
Avoid risky stocks or fancy products.

Stick to mutual funds with proven track record.

? Regular Monitoring and Review

– Set one day every year to review your plan.
– Track SIPs, maturity amounts, tax status, and goal progress.

Discuss with Certified Financial Planner regularly.
Markets change. Life goals shift. Review keeps your plan relevant.

Don’t assume everything will work on autopilot.
Involvement brings better results.

? Finally

– You are in the crucial decade before retirement.
– Decisions made now will define your retired life.

Use your PPF maturity wisely.
Avoid keeping money idle or in low-return options.

Balance between safety and growth is important now.
Continue SIPs. Increase amount gradually.
Avoid index and direct funds.
Use regular mutual funds via Certified Financial Planner.

Don't rush. But don’t delay either.
Start building your post-retirement wealth seriously now.

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

...Read more

Nayagam P

Nayagam P P  |8853 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Career
Hi Sir, I got 93%ile in MHT CET and 83%ile in JEE mains under general category. I am looking forward for addmission for CS in Pune. Which college can I get with good placements and packages?
Ans: With a 93rd percentile in MHT-CET (General-Home State) and an 83rd percentile in JEE Main, you have assured admission prospects into these fifteen reputable Pune institutes for B.Tech in Computer Science Engineering. All are AICTE-approved, NBA/NAAC-accredited, feature modern computing and AI/ML labs, experienced faculty, strong industry partnerships and placement cells recording 75–92% branch-wise placement consistency over the last three years. MIT World Peace University, Kothrud, Pune. AISSMS College of Engineering, Shivajinagar, Pune. Pimpri Chinchwad College of Engineering, Pimpri, Pune. Dr. D.Y. Patil Institute of Technology, Akurdi, Pune. Vishwakarma Institute of Information Technology, Bibwewadi, Pune. Sinhgad College of Engineering, Vadgaon, Pune. Pune Vidyarthi Griha’s College of Engineering, Pune. JSPM Rajarshi Shahu College of Engineering, Tathawade, Pune. MIT Academy of Engineering, Alandi, Pune. Indira College of Engineering and Management, Pune. Bharati Vidyapeeth College of Engineering, Lavale, Pune. Ajeenkya DY Patil School of Engineering, Lohegaon, Pune. Army Institute of Technology, Dighi, Pune. Cummins College of Engineering for Women, Pune. Symbiosis Institute of Technology, Lavale, Pune.

recommendation
MIT World Peace University, Kothrud, Pune stands out for its multidisciplinary CSE curriculum, dedicated AI/ML labs and consistent 90% placement rate. AISSMS College of Engineering, Shivajinagar, Pune offers a strong urban campus, robust industry moUs and 88% placement consistency. Pimpri Chinchwad College of Engineering, Pimpri, Pune provides reliable admissions, extensive recruiter engagement and modern computing infrastructure. Dr. D.Y. Patil Institute of Technology, Akurdi, Pune delivers solid placement support and specialized software and hardware labs. Vishwakarma Institute of Information Technology, Bibwewadi, Pune merits consideration for its focused CSE pedagogy and 85% placement record. All the BEST for Admission & a Prosperous Future!

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