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Mudassar, With 3 Kids and House Loan, Asks: Should I Sell My House for Investment?

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 29, 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 - Jan 26, 2025
Money

Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...

Ans: Your combined monthly income from you and your father is Rs. 75,000.
Total EMIs for loans and chit contributions amount to Rs. 49,000.
You are left with Rs. 26,000 to manage household expenses, children's education, and other needs.
You have two LIC policies with an annual premium of Rs. 56,000.
Selling your house may yield around Rs. 42 to 45 lakhs, which can be used to clear your debts.
Priority Recommendations
1. Debt Clearance Strategy
Clearing high-interest loans should be your top priority.

Focus on repaying the following in this order:

Company loan (Rs. 1.5 lakh, EMI Rs. 4,000)
LIC loan (Rs. 2 lakh, EMI Rs. 2,000)
Father's loan (Rs. 4 lakh, EMI Rs. 14,000)
HDFC loan (Rs. 7.2 lakh, EMI Rs. 14,000)
Consider selling your house if you are comfortable shifting to a rental property.

After clearing all debts, you may still have around Rs. 25 lakhs for investments.

2. Managing LIC Policies
You mentioned loans against your LIC policies.
Review the surrender value of these policies.
If they are investment-oriented (like money-back or endowment plans), surrendering may be wise.
Use the funds to clear loans or invest in mutual funds for better returns.
3. Investment Strategy Post-Debt Clearance
If you sell your house and have Rs. 25 lakhs remaining:

Emergency Fund: Keep Rs. 4 to 5 lakhs aside in a fixed deposit or liquid fund.
Children's Education Fund: Allocate Rs. 10 to 12 lakhs to balanced mutual funds for long-term growth.
Systematic Investment Plan (SIP): Start monthly SIPs of Rs. 15,000 in diversified mutual funds.
Retirement Fund: Invest Rs. 5 to 7 lakhs in a mix of equity and hybrid funds for long-term wealth creation.
4. Expense Management Tips
Reduce unnecessary expenses and focus on essential needs.
Review your children's school fees and explore scholarships or fee concessions if possible.
Create a monthly household budget to monitor spending.
5. Chit Fund Contributions
Continue with the chit fund for the remaining 15 months if possible.
Avoid renewing or joining new chit funds in the future.
Use the proceeds from the chit fund payout to build your emergency fund or invest.
6. Insurance Adequacy
Your current insurance policies may not provide adequate life coverage.
Ensure you have a pure term insurance plan with coverage of at least Rs. 1 crore.
Ensure comprehensive health insurance for your entire family, including your father.
Final Insights
Selling your house seems like a practical solution given your financial strain. Clearing debts will free up Rs. 34,000 per month, providing financial stability. Investing wisely in mutual funds can secure your children's education and your family's future.

Stay disciplined with your financial plan, avoid further loans, and focus on wealth creation through systematic investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Mar 25, 2025

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Jan 26, 2025
Money

Sir, I am Mudassar, 40 years old, i have 3 childrens, 2 daughter and son. Sir, i need your suggestions/guidance becaz i am in very crtical situation. My take home salary is 40K and my father (retired age 74 ) salary is 35K , we both have personal laons to build house. I have two running LIC's , on which i have taken loan also. Recenlty we build own house , if i sell now, i will get around 42 to 45 Lakhs . My lloan detailsbelow ; 1. HDFC 7,20,000 emi 14K 2. Company emi 1,50,000 emi 4K 3. LIC loan 2 laks emi 2K 4. Father loan 4 lacks , two year remaining, emi 14K Total emi : 34K Apart from we are paying 15K monthy to chit fund , still 15 months remaining. Summary: Total sal 75 K , after laon and chit fund deducting , will get 26K to run home , including grocery, children fees , health etc... its very difficult to manage, and keep thinking to take extra loan .. as i said earlier , have two LIC's , i am.paying 56K every year . What i am thinking is, i will sell my house And clear all my laons .. and approximate i will have 25 Lakhs remeaing , so i will inest in mutual fund , SIP , SWP, index fund for long time investment .. So i.am in very confusing mode , whether i have to sell my house .. and start my investment journey... pls help sir .. My finacial conditions are very similar to all middle class family.. Request you to please reply and give your sugestion for investment joury. Awaiting your kind reply .. Thanks in advance ...

Ans: Hello;

Suppose you sell your house and clear your loans and other liabilities but where will you & your family stay?

How much rental per month would be required to get an adequate house on rent?

Please clarify. Based on your input we can advise you suitably.

Thanks;
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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Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 24, 2024

Asked by Anonymous - Oct 23, 2024Hindi
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Dear Arora Sir, I am 51 yr old , Staying in NCR (Rental); Old Parental House in Lucknow (Vacant, To be sold later, Approx Cost - 60 L); *18.90 L PA salary (In hand), Expenses 10.0L PA (Inclusive of House expenses, Electricity , House rent , Term Insurance Premium, Medical + super Top up Premium, Car Loan for next 32 month etc), 2 Term plan - 1.75 Cr (Cummulative SI) ; Daughter (1 no, 20 yrs) - Higher Education & Marriage, Son (1 No, 13 yrs) - Higher Education & Marriage; New house to purchase (In Lucknow in next 5-6 years after selling the existing Parental house , Budget: 75L - 85L);; * Investments : PPF (25th Term Running): 24 L ; Sukhanya (Daughter's ) : 4.0L; Shares : 10.0 L. I also earn approx 1.0 Lacs / yr from Interest + Dividends which is again reinvested in SIP. * Monthly investment is 72K in Mutual Fund SIP. SIP in Progress: DSP Elss D/G - 8000/- ; Nippon Mid Cap D/G - 5000/-; Nippon Multi Cap D/G - 8000/-; Parag Flexi Cap D/G - 5000/- ; Quant Elss D/G - 8000/- ; Mirae Elss D/G - 6000/- ; ICICI Pru Val Disc D/G - 7000/-; HDFC Def D/G - 5000/-; HDFC Flexi Cap D/G - 5000/-; HDFC Mfging D/g - 5000/-; HDFC Mid Cap opportunity D/G - 5000/- ; HDFC Top 100 D/G - 5000/- ; My choice of selecting MF House & Scheme is mainly word of mouth / Google etc.. not much of research !! * SIP Completed lying dormant (Units available) : Axis Bluechip D/G - 4287 units; Axis Elss D/G - 8049 units; Axis Elss D/IDCW - 4342 units; Sundaram Mid Cap D/G - 1123 units; UTI Nifty 50 index D/G - 3021 units ; ABSL Frontline Equity D/G - 4763 units ; DSP Top 100 D/G - 2203 units ; HDFC Hybrid - 5862 units; HDFC Top 100 D/IDCW - 3640 units ; HSBC ELSS R/IDCW - 1840 units ; HSBC ELSS D/IDCW - 259 units ; ICICI Pru Bluechip D/G - 4267 units ; ICICI Pru Multi Asset D/G - 1775 units ; Mirae Large & Mid Cap D/G - 3395 units ; Mirae ELSS D/IDCW - 8861 units; Nippon Large Cap D/G - 9915 units; Nippn Elss D/IDCW - 12705 units ; Quantum Long Term Equity D/G - 9702 units; I have been Investing from 1998 onwards in SIP ; Till now total invested in SIP : 66L ;; current value is 1.74 Cr). My Wish List : To make approx 10CR after 9 years (Retirement); So please Suggest / Guide me , how to move forward with current investments or any restructure is reqd. Thanks in Advance.
Ans: Hello;

Your corpus value 9 years hence will be 7.80 Cr.

This working includes sip corpus, ppf, ssy, stock holding, dividend/interest reinvestment in SIPs, dormant sips future value after 9 years and parental house current value.

You may redeem the IDCW scheme dormant SIPs and reinvest the proceeds in current sip funds equally as lumpsum.

Regarding existing SIP funds, I suggest you to remove thematic funds like HDFC defence and HDFC manufacturing funds and redirect those SIPs into PPFAS flexicap fund and HDFC Top 100 fund.

Please confirm the EPF and NPS, if any, corpus available to you which can supplement the corpus gap of 2.2 Cr.

The prospect of sip enhancement or top-up to meet target shortfall is prohibitively high hence unfeasible.

Please feel free to revert.

Happy Investing;

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 29, 2025

Asked by Anonymous - Jul 06, 2025Hindi
Money
Hi Sir, I am 37 years old and have a monthly income of 2.5lakhs.. I have a home loan of 79lakhs with emi of 66k and 17 years remaining. Also have a home improvement loans of 10 lakhs with emi of 10k with 14 years remaining. I have 2 kids with monthly school fees coming to 32k. Monthly household expenses come to 40k-50k. I have a sip of 50k per month which is now 4 lakhs. A paid up ULIP which is 6 lakhs now. A piece of land which is around 50lakhs. I am confused and not sure about the way forward. Please help
Ans: – You are earning Rs. 2.5 lakhs per month. That gives good planning potential.
– You are managing EMIs, school fees and SIPs. That shows discipline.
– You are also aware of your confusion. That is a sign of maturity.

? Current Financial Snapshot
– You have two loans: Rs. 79 lakhs home loan and Rs. 10 lakhs improvement loan.
– Total EMI is Rs. 76,000 per month.
– School fees come to Rs. 32,000 monthly.
– Household expenses are Rs. 40,000–50,000 per month.

– You are investing Rs. 50,000 per month via SIPs.
– SIP corpus is Rs. 4 lakhs now.
– You also have a paid-up ULIP worth Rs. 6 lakhs.
– You own a land worth Rs. 50 lakhs.

? Assessing Loan Exposure
– Home loan tenure is 17 years.
– Improvement loan tenure is 14 years.
– Long tenures keep interest payout high.
– It also affects future flexibility and peace of mind.

– You are paying nearly 30% of income as EMI.
– That is acceptable, but not ideal.
– A more efficient plan can reduce this pressure.

? School and Household Commitments
– Rs. 32,000 per month for school is high.
– Kids' education is an important responsibility.
– You are meeting that well. That’s a good sign.

– Household expenses are within range.
– Total fixed outgo is around Rs. 1.5 lakhs.
– You are left with Rs. 1 lakh monthly.

– This is a strong position to build future wealth.
– It allows space for structured and secure investments.

? SIP and Mutual Fund Review
– You are investing Rs. 50,000 monthly in SIP.
– SIPs are a strong tool for long-term wealth.
– Your existing corpus is Rs. 4 lakhs.
– You have started well, but more consistency is needed.

– Please ensure funds are regular plans, not direct.
– Direct plans lack handholding and behavioural guidance.
– Regular plans via MFD with CFP support offer full-service engagement.
– Portfolio gets rebalanced, reviewed, and corrected periodically.

– Avoid index funds. They do not suit Indian markets well.
– Actively managed funds have better flexibility and expertise.
– Indian markets are still evolving, needing active stock picking.

– Stay invested with long horizon.
– Don’t redeem early unless for clear goal.
– Add goal-wise SIPs going forward.

? Regarding the Paid-Up ULIP
– ULIPs are low-return, high-cost products.
– Insurance and investment should not be mixed.
– A paid-up ULIP is often stagnant in returns.

– Surrender the ULIP if lock-in is over.
– Reinvest proceeds in goal-based mutual funds.
– That will improve long-term returns.

– Use a regular mutual fund route.
– Connect with a Certified Financial Planner to guide fund selection.

? Real Estate Holding: Rs. 50 Lakhs Land
– Land as an asset is illiquid.
– It does not generate monthly income.
– Also, price discovery and resale is unpredictable.

– Please do not depend on this for retirement.
– Use it only for lifestyle needs or family use.
– Do not use it as a core investment pillar.

? Short-Term Priorities to Focus
– Maintain an emergency fund of Rs. 3–6 lakhs.
– That protects against health or income disruption.
– Right now, this fund is not mentioned. Please prioritise it.

– Review insurance. You need term life cover.
– Should be 15–20 times your annual income.
– Health insurance must cover family and self adequately.

– Avoid depending on employer coverage only.
– Personal policies are more stable and independent.

– Avoid new loans. That can spoil the cash flow.
– Instead, build liquid financial reserves.

? Optimising Loan Management
– Consider prepaying small chunks of improvement loan.
– Start with Rs. 1–2 lakhs yearly part prepayment.
– This will reduce tenure significantly.

– Home loan can continue with EMI for tax benefits.
– But in future, any surplus should reduce principal.
– That builds ownership faster and saves interest.

– Avoid investing aggressively while loan interest is high.
– Balance is the key.

? Financial Goals Clarity Needed
– List short-term and long-term goals.
– Child education, higher studies, retirement and family security.
– Each goal needs a clear cost and time estimate.

– Link SIPs to these goals.
– For example: Rs. 20,000 for retirement, Rs. 15,000 for education.
– This creates a focused investment plan.

– Add step-up SIP every year.
– As income increases, SIPs should increase too.

– This helps stay ahead of inflation and life costs.

? Risk Protection Measures
– Term insurance is essential. Check current coverage.
– Get separate health insurance for family.
– Evaluate accidental and critical illness policies too.

– Insurance gives peace and financial backup.
– Don’t rely on investment-based policies for protection.

? Kids’ Education and Future Planning
– Plan for two stages: school and higher education.
– Higher education will cost 20–40 lakhs per child in future.
– Use mutual funds for this.

– Start SIPs in equity mutual funds for long term.
– Goal should be 10–12 years away.
– Use 70–80% equity and balance in debt or hybrid.

– Use STP (systematic transfer plan) to shift funds before usage.

? Retirement Readiness and Strategy
– At 37, retirement may be 20+ years away.
– But planning must start now.
– Use a dedicated SIP for this purpose.

– EPF, PPF, and NPS can be support tools.
– But main retirement corpus should be in mutual funds.

– Revisit every 3 years with a Certified Financial Planner.
– Use goal reviews to stay aligned.

? Tax Planning Optimisation
– Continue claiming home loan interest and principal benefits.
– Also claim school fees for 2 kids under Section 80C.

– Invest in ELSS funds via regular plans.
– That gives tax benefit and long-term growth.

– Avoid tax-saving insurance plans or annuity options.
– They lock money and offer poor returns.

? Behavioural and Cash Flow Discipline
– Don’t withdraw SIPs for lifestyle use.
– Avoid lump sum investments without a goal.
– Invest only through verified MFD under CFP guidance.

– Review expenses every 6 months.
– Keep credit card use minimal.
– Track monthly budget and set targets.

– Spend only after saving, not before.

? Action Steps from Here
– Maintain Rs. 3–6 lakhs emergency fund immediately.
– Review and surrender ULIP. Reinvest amount in mutual fund.
– Rebalance SIP portfolio with goal-wise approach.

– Start small annual part-prepayment on improvement loan.
– Take adequate term and health insurance cover.
– Work with Certified Financial Planner regularly.

– Prepare a goal sheet with year-wise and amount-wise layout.
– Add step-up in SIP each year by 10%.
– Stick to mutual funds only for wealth creation.

? Finally
– You are already doing many things right.
– You are earning well, investing steadily, and aware of debt.
– With proper alignment and professional guidance, growth is assured.

– Avoid mixing investment and insurance.
– Focus on liquidity, flexibility, and clear goal-based investing.
– Follow this structured approach to stay stress-free and wealthy.

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

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 01, 2025

Asked by Anonymous - Jul 10, 2025Hindi
Money
Hi sir, I am 37 year old working in IT sector having 1 lac per month in hand salary. I have following loan: 1) 5 Lac personal loan for which 9200/month emi 2) recently bought a new flat to live and borrowed 5 Lac from relatives interest free and planning to repay 50k/month for next 10 months to clear it. I have 7 lacs approx in ppf (5 yrs passed), 4 lacs in pf, 5 Lac in nsc to be mature in 2026, mutual fund total value (1.2L in icici prudential large cap and HDFC flexi cap fund) and every month contributing 2k total in these MFs, stocks worth rs 2.5 lacs (value 2.8 lac). 1 lac in saving as cash flo and 1 lac as emergency fund (i use to increase it whenever I get some bonus etc), 1 term insurance worth rs 1 cr (yearly premium 43k for 15 yr) and planning to take health insurance next month (costs around 30k for family floater) apart from corporate insurance. My father has bought pnb MetLife policy for me which he is paying 2 lac per year to get around 35lacs approx after 15 year.i know ulip is not gud but he has Already paid 5 premiums. (PPT -10 years, maturity time -15 years) One flat which us available for rent about 20k but not yet occupied. I have one child. He is 2 years old and spouse is working on contract basis earning 25k per month. My father is pensioner and getting around 50k per month. I have started late investing hence I am worried about how to achieve retirement goal and child future needs to fulfill as there is always uncertainty in IT sector for layoffs etc. please guide which funds i should choose and what strategy should I make to fulfill future needs and easy and early retirement? Please suggest some good funds to start with now.
Ans: You are already doing many things right.
You are saving. You are investing. You are repaying loans.
You have taken term insurance. You have an emergency fund too.
That is a solid starting point.

Still, your concerns are valid.
Late start, uncertain job, young child, and loans can create pressure.
But a right plan can bring clarity and peace.

Let’s now plan in a 360-degree way.

» Income, Expenses and Savings Analysis

You earn Rs. 1 lakh per month.

Spouse earns Rs. 25,000 monthly on contract.

So, household income is Rs. 1.25 lakh per month.

You are paying Rs. 9,200 EMI on personal loan.

Also, Rs. 50,000 per month goes to repay relative’s loan.

This large outgo is temporary. Only for 10 months.

Once Rs. 50,000 monthly outgo ends, channel it to investments.
It will give your plan a big boost.

» Loan and Liability Evaluation

Personal loan of Rs. 5 lakh is running.

You are paying Rs. 9,200 monthly EMI.

Try to close this in 3 years.

If possible, prepay once relative’s loan is over.

You also borrowed Rs. 5 lakh from family.

That is interest-free. You are repaying Rs. 50,000 per month.

That will be over in 10 months.

No other home loan means less financial pressure.
This puts you in a stronger long-term position.

» Insurance and Protection Review

You have a term insurance of Rs. 1 crore.

But premium is Rs. 43,000 yearly for 15 years.

That seems high. Review the policy once.

Term plan should be pure cover, no returns.

You can take a cheaper term plan for higher cover.

Buy health insurance this month.

You are doing the right thing here.

Rs. 30,000 family floater is a good move.

Don’t depend only on corporate cover.

Health insurance protects long-term savings.

You also have a ULIP from PNB MetLife.

Your father is paying Rs. 2 lakh per year.

Maturity is Rs. 35 lakh in 15 years.

Since 5 premiums are paid, don’t stop now.

Let your father complete the full 10 years.

But don’t consider ULIP in your own investment strategy.
It is better to separate insurance and investments.

» Emergency and Liquidity Check

You have Rs. 1 lakh emergency fund.

And Rs. 1 lakh cash flow buffer.

You also add to emergency fund from bonuses.

This is a great habit.
Keep building this to at least Rs. 2.5 lakh.
Try to park it in a liquid mutual fund.
This will earn better than savings account.

Emergency fund is like a seat belt.
It protects your financial life from unexpected bumps.

» Investment Assessment and Consolidation

Let’s assess your current investments one by one:

PPF – Rs. 7 lakh.

Good for long-term tax-free corpus.

Continue till full 15 years.

EPF – Rs. 4 lakh.

Keep contributing through salary.

Don’t touch it early.

NSC – Rs. 5 lakh.

Matures in 2026.

Use maturity amount to invest in mutual funds.

Mutual Funds – Rs. 1.2 lakh (ICICI and HDFC).

Monthly SIP: Rs. 2,000.

Amount is low. But direction is right.

You must increase SIPs steadily.

Stocks – Rs. 2.8 lakh.

Individual stocks need active tracking.

Keep them limited to 10–15% of your total assets.

Consider shifting to diversified mutual funds slowly.

Your asset base is decent.
But monthly investment amount is low.
That is the gap to fill.

» Real Estate Note

One flat is available for rent.

Monthly rent of Rs. 20,000 is possible.

Get it rented soon.

Use rental income to invest monthly.

Avoid buying more real estate.
Don’t lock money in land or property again.
Real estate is illiquid and slow-growing.

Focus on financial assets instead.

» Retirement and Child Planning Concerns

You are 37. Retirement may be 18–20 years away.
Child is 2 years old.
College expenses will start after 15 years.

Your challenge is to grow wealth smartly now.
Job risk makes this even more urgent.

You need flexibility, liquidity and high growth.
Mutual funds are the best option.

Avoid index funds.
They only mirror the market.
They don’t protect capital in a fall.
No active risk management. No expert control.

Choose actively managed funds only.
They aim to beat the market.
They manage risk during volatility.

Also, avoid direct funds.
They come with lower cost but no guidance.
Regular funds via CFP and MFD are better.
They offer review, rebalancing, and behaviour control.

This is crucial when market falls or emotions rise.

» Action Plan: What to Do Now

Repay Rs. 5 lakh borrowed from relative in 10 months.

Don’t prepay PNB ULIP. Let your father complete 10 years.

Increase your emergency fund to Rs. 2.5 lakh.

Don’t increase stock investments.

Start SIPs of Rs. 20,000 per month from April 2025.
(Rs. 50,000 loan repayment will get over by then)

Split SIP across 4 fund categories:

Multi-cap fund

Flexi-cap fund

Small-cap fund

Balanced advantage fund

Start ELSS mutual fund of Rs. 1.5 lakh yearly for tax saving.

Invest only in regular plans via a Certified Financial Planner.

Review SIPs every year and increase by 10%.

Use NSC maturity amount in 2026 to invest in mutual funds.

Use rental income of Rs. 20,000 per month for additional SIP.

Avoid NPS or annuity plans. They have liquidity issues.

» Retirement Target Strategy

PPF + EPF + Mutual funds will form your core retirement corpus.

ULIP maturity can support some lifestyle goals.

Keep increasing SIP every year.

Avoid lifestyle inflation even if income grows.

Direct all extra money into investments.

Job uncertainty can be managed through this approach.
Diversified funds and SIPs give peace and flexibility.
You can even achieve early retirement if plan is consistent.

» Child Education Planning

Start a separate SIP of Rs. 5,000 for child goal.

Increase it to Rs. 10,000 by April 2026.

Choose one small-cap fund and one hybrid fund.

Don’t invest for child in real estate or insurance plans.

Keep the corpus flexible.
Withdraw in parts as needed after 15 years.

Also, take one child-specific rider in your term insurance.
That ensures financial safety even in emergencies.

» Finally

You are on the right track.

Loans are manageable and will be over soon.

Your base is strong – EPF, PPF, ULIP, NSC, cash flow.

Just shift the focus fully to mutual funds now.

Avoid direct funds, avoid index funds, avoid ULIPs in future.
Rely on regular mutual funds through Certified Financial Planner only.

Start with Rs. 20,000 SIP from next year.
Add rental income and bonus to SIPs.
Increase SIPs each year by 10% at least.
Hold these funds for 15+ years without panic.

This one disciplined strategy will secure both retirement and child goals.
Even job risks will not bother you if this plan is followed.

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

..Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 23, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
Hello Sir My take home is about 2lakhs post tax, Have 2 home loans. One home is on rent getting around 25k per month. Curent outstanding is near about 15 lakhs. Another loan is outstanding about 96lakhs. Have 2 kids aged 11 and 3. For Daughter PPF account balance as of now is ~14 lakhs. NPS monthly is about 11.5 k on tier 1. Curent NPS tier one balance ~6 lakhs. Tier 2 balance ~ 1 lakh. Invests on tier 2 approximately 30-40k per year. Have Few LIC policies as well. Have tata AIA ULIP term insurance of 1 CR. Also invests approximately 5k per month on Direct mutual fund. Have emergency fund approximately 15Lakhs. Planning to sell one house, would you suggest to foreclose the maximum amount of 2nd home loan to have a better money flow at hand or invest it wisely?
Ans: ? Income and Overall Cash Flow

– Your monthly take-home is strong at Rs 2 lakhs post-tax.
– Rental income of Rs 25,000 adds a good passive flow.
– Home loan EMIs can take a significant chunk of your income.
– Two kids' future needs will need careful planning and funding.
– Strong and stable cash flow gives you options to grow wealth smartly.

? Existing Home Loans and Liabilities

– First loan has Rs 15 lakhs outstanding; home is on rent.
– Second loan is quite large with Rs 96 lakhs outstanding.
– Interest outgo will be high on this second home loan.
– Home loan tax benefits are limited beyond a point.
– Loans can create long-term stress if not balanced with returns.
– You must analyse EMI vs benefit carefully for both loans.

? Rental Property Evaluation

– Rental yield is approximately 2% on property value.
– This return is very low when compared with other financial assets.
– Property also comes with tax, maintenance, and tenant risks.
– Liquidity is another concern with physical property assets.
– Rental income is taxable, which further reduces its benefit.

? Foreclosure Decision and Cash Flow Improvement

– Selling the property and using funds to reduce loan is wise.
– Especially foreclosing the second larger loan is smarter.
– Foreclosure helps in improving cash flow instantly.
– You will save a large interest outgo over years.
– Without EMIs, you’ll have higher surplus to invest.
– Emotional attachment to home shouldn’t outweigh financial logic.

– Pay off maximum possible on the 96L loan.
– Partial foreclosure is also a good start if full closure not possible.
– Prioritise freeing up income for kids’ goals and your retirement.

? Emergency Fund Management

– Rs 15 lakhs emergency fund is excellent.
– Keep 6-9 months’ expenses always liquid.
– Remaining can be put in short-term debt mutual funds.
– This can give better returns than savings accounts.

? NPS Investment Strategy

– Monthly Rs 11.5k in Tier 1 is a healthy long-term habit.
– Current corpus of Rs 6 lakhs is on track.
– NPS is tax-efficient and supports retirement planning well.
– Tier 2 corpus of Rs 1 lakh and annual Rs 30-40k addition is fine.
– But NPS Tier 2 is not tax-friendly for withdrawals.
– Better to use this only as satellite allocation.

? Mutual Fund Investment Assessment

– Rs 5,000 monthly in direct mutual funds is positive.
– But direct funds lack professional advisory support.
– Many miss rebalancing, tracking and scheme changes.
– Investing through regular funds with a Certified Financial Planner helps.
– CFP-backed MFDs give disciplined strategy, reviews, and emotional support.
– Their expertise ensures schemes match your risk and goals.
– Paying a small trail fee is worth the long-term benefits.

– Direct funds may work for DIY experts but most investors struggle.
– You can gradually shift existing direct holdings to regular plans.
– This way, your investments will be monitored consistently.

? Insurance Portfolio Review

– Tata AIA ULIP term plan of Rs 1 crore is noted.
– ULIP is not a pure term plan; it’s mix of insurance and investment.
– ULIP charges are higher and returns unpredictable.
– Better to hold a separate term plan and separate investment plans.
– If Tata AIA plan is mainly ULIP, consider surrendering it.
– Redeploy proceeds into diversified mutual funds via regular route.

– Term cover of Rs 1 crore is on lower side for you.
– You can evaluate increasing cover to 15-20 times your annual income.
– Term insurance should only cover income replacement needs.

? LIC Policy Review and Action

– LIC policies usually have low returns around 4-5%.
– These are often endowment or money-back types.
– They are not effective as long-term wealth builders.
– Evaluate surrendering them if minimum term lock is complete.
– Redeploy amount in mutual funds aligned with your goals.
– Only then compounding will work in your favour.

? Kids’ Future and Education Planning

– Daughter’s PPF balance of Rs 14 lakhs is a great start.
– You should continue investing yearly in PPF for her.
– But PPF alone won’t fund higher education fully.
– Add mutual fund SIPs with 10-15 year view for both kids.
– Use equity mutual funds for long-term compounding.
– Ensure these investments are goal-specific and regularly reviewed.

– For the 3-year-old, you have more time to build wealth.
– Start small SIPs and increase every year with income growth.
– This way, you won’t depend on loans later for education.

? Retirement Planning and Your Future Needs

– Retirement is the biggest and longest goal.
– Your NPS is good but should be supplemented.
– Invest more in equity mutual funds for higher post-retirement corpus.
– Use mid-cap and flexi-cap categories to balance risk and reward.
– Review NPS allocation regularly to ensure equity-debt balance is right.

– No pension from LIC or ULIP will be sufficient post-retirement.
– Only a strong mutual fund portfolio can provide income later.
– Maintain discipline and avoid withdrawing unless urgent.

? Real Estate vs Financial Assets Comparison

– Real estate gives poor liquidity and low rental yield.
– Costs like tax, repairs, registration reduce net gains.
– Financial assets are better for goal-based planning.
– They are flexible, transparent, and easier to rebalance.
– Selling one house and shifting to mutual funds is wise.

– You can hold one primary home and focus on financial assets.
– Don't rely on property appreciation for future security.

? Tax Efficiency and Wealth Creation

– Mutual funds offer better tax-adjusted returns than property or ULIPs.
– Equity mutual funds now taxed at 12.5% on gains above Rs 1.25L yearly.
– Short-term gains taxed at 20% if sold within 1 year.
– Debt funds taxed as per income slab both short and long term.
– Tax planning should not drive investment alone.
– Focus on after-tax returns and goal fitment.

– Avoid mixing insurance and investment for tax saving alone.
– Use ELSS for 80C instead of LIC or ULIPs.

? Behavioural Discipline and Tracking

– Most wealth creation is about consistency and review.
– Working with a CFP gives structure and behavioural support.
– Avoid panic during market drops and greed during rallies.
– Track goals, not just returns.
– Make annual reviews a habit.

– Rebalancing is needed as life stages and goals evolve.
– CFP can guide in adjusting allocations with changing priorities.

? Estate and Succession Planning

– As you build wealth, plan nomination and will writing too.
– Use proper documentation for all financial assets.
– Update nominees on insurance, NPS, mutual funds, PPF etc.
– Consider writing a registered Will for smooth transition later.
– Educate spouse about key accounts and policies.

? Final Insights

– Sell the rental home and reduce the larger loan as first step.
– Freeing your cash flow is more powerful than small rental income.
– Shift from direct to regular mutual funds via CFP-led MFDs.
– Review and consider surrendering low-yield LIC and ULIPs.
– Increase SIPs towards kids’ education and your retirement.
– Protect your family with an adequate term plan.
– Build wealth with goal-focused, reviewed, and disciplined investing.
– Work with a CFP to get holistic, unbiased, and structured guidance.
– Always prioritise simplicity, liquidity, and transparency in your finances.
– Let your money give you peace and not stress.

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |10852 Answers  |Ask -

Career Counsellor - Answered on Dec 07, 2025

Career
Hello, I’m a student who recently joined the Integrated M.Sc Physics program at Amrita University. I’m aiming for a strong academic foundation and a clear career path. Could you please guide me on the following: How good is this course for research careers or higher studies (IISc, IITs, abroad)? What are the placement prospects after Integrated M.Sc Physics at Amrita? Does the program help in preparing for alternate options like UPSC, CDS/AFCAT, or technical roles? What skills (coding, research projects, certifications) should I start early to make the most of this degree?
Ans: Sree, Program Overview and Academic Foundation: Congratulations on joining the Integrated M.Sc Physics program at Amrita University. This five-year integrated program represents a rigorous pathway designed to equip you with advanced theoretical and experimental physics knowledge combined with cutting-edge scientific computing skills. The curriculum uniquely integrates a minor in Scientific Computing, which adds substantial computational capability to your profile—a critical advantage in today's research and professional landscape. The program incorporates comprehensive coursework spanning classical mechanics, electromagnetism, quantum mechanics, statistical physics, advanced laboratory work, and specialized topics in materials physics, optoelectronics, and computational methods, positioning you excellently for both research and professional careers.
Research Career Prospects: IISc, IITs, and Beyond: For research-oriented careers, the Integrated M.Sc Physics program at Amrita provides an exceptional foundation. Amrita's curriculum specifically aligns with GATE and UGC-NET examination syllabi, and the institution emphasizes early research engagement. The faculty at Amrita actively publish research in Scopus-indexed journals, with over 60 publications in international venues within the past five years, exposing you to active research environments.
To pursue research at premier institutions like IISc, you would typically follow the PhD pathway. IISc accepts M.Sc graduates through their Integrated PhD programs, and with your Amrita M.Sc, you're eligible to apply. You'll need to qualify the relevant entrance examinations, and your integrated program's emphasis on research fundamentals provides strong preparation. The final year of your Integrated M.Sc is intentionally structured to be nearly free of classroom commitments, enabling engagement with research projects at institutes like IISc, IITs, and National Labs. According to Amrita's data, over 80% of M.Sc Physics students secured internship offers from reputed institutions during academic year 2019-20, directly facilitating research career transitions.
Placement and Direct Employment Opportunities: Amrita University boasts a comprehensive placement ecosystem with strong corporate and government sector connections. According to NIRF placement data for the Amrita Integrated M.Sc program (5-year), the median salary in 2023-24 stood at ?7.2 LPA with approximately 57% placement rate. However, these figures reflect general placement trends; physics graduates often secure higher packages in specialized technical roles. Many graduates join software companies like Infosys (with early offers), Google, and PayPal, where their strong analytical and computational skills command competitive compensation packages ranging from ?8-15 LPA for entry-level positions.
The Department of Corporate and Industrial Relations at Amrita provides intensive three-semester life skills training covering linguistic competence, data interpretation, group discussions, and interview techniques. This structured placement support significantly enhances your employability in both government and private sectors.
Government Sector Opportunities: UPSC, BARC, DRDO, and ISRO: Your M.Sc Physics degree opens multiple avenues for prestigious government employment. UPSC Geophysicist examinations explicitly list M.Sc Physics or Applied Physics as qualifying degrees, enabling you to compete for Group A positions in the Geological Survey of India and Central Ground Water Board. The age limit for geophysicist positions is 32 years (with relaxation for reserved categories), and the exam comprises preliminary, main, and interview stages.
BARC (Bhabha Atomic Research Centre) actively recruits M.Sc Physics graduates as Scientific Officers and Research Fellows. Recruitment occurs through the BARC Online Test or GATE scores, with positions in nuclear science, radiation protection, and atomic research. BARC Summer Internship programs are available, offering ?5,000-?10,000 monthly stipends with opportunity for future scientist recruitment.
DRDO (Defense Research and Development Organization) recruits M.Sc Physics graduates through CEPTAM examinations or GATE scores for roles involving defense technology, weapon systems, and laser physics research. ISRO (Indian Space Research Organisation) regularly advertises scientist/engineer positions through competitive recruitment for candidates with strong physics backgrounds, offering opportunities in satellite technology and space science applications.
Other significant employers include the Indian Meteorological Department (IMD) recruiting as scientific officers, and NPCIL (Nuclear Power Corporation of India Limited), offering stable government service with competitive compensation packages exceeding ?8-12 LPA for scientists.
Alternate Career Pathways: UPSC, CDS, and AFCAT: UPSC Civil Services (IFS - Indian Forest Service): M.Sc Physics graduates qualify for UPSC Civil Services examinations, with the forest service offering opportunities for science-based administrative roles with potential to reach senior government positions.
CDS/AFCAT (Armed Forces): While AFCAT meteorology branches specifically require "B.Sc with Maths & Physics with 60% minimum marks," the technical branches (Aeronautical Engineering and Ground Duty Technical roles) require graduation/integrated postgraduation in Engineering/Technology. An M.Sc Physics integrates well with technical qualifications, though you would need engineering background for direct officer entry. However, you remain eligible for specialized technical interviews if applying through alternate defence channels.
UGC-NET Examination: This pathway leads to Assistant Professor positions in central universities and colleges across India. NET-qualified candidates receive scholarships of ?31,000/month for 2-year JRF positions with PhD pursuit, transitioning to Assistant Professor salaries of ?41,000/month in government institutions. This route provides long-term academic career security with research opportunities.
Private Sector Technical Roles
M.Sc Physics graduates are increasingly valued in data science, software engineering, and technical consulting. Companies actively recruit physics graduates for software development, where strong problem-solving and logical reasoning translate to competitive packages of ?10-20 LPA. Specialized domains including quantum computing development, financial modeling, and scientific computing offer premium compensation. Your minor in Scientific Computing makes you particularly attractive to technology companies requiring computational expertise.
International Opportunities and Higher Studies Abroad
An M.Sc from Amrita facilitates admission to PhD programs at international institutions. German universities offer tuition-free or low-fee MSc Physics programs (2 years) with scholarships like DAAD providing €850+ monthly stipends. US universities accept M.Sc graduates directly for PhD positions with full funding (tuition coverage + stipend). These pathways require GRE scores and strong Statement of Purpose articulating research interests. Research collaboration opportunities exist with Max Planck Institute (Germany) and CalTech Summer Research Program (USA), both welcoming Indian M.Sc students.
Essential Skills and Certifications to Develop Immediately: Programming Languages: Start learning Python immediately—it's universally used in research and industry. Dedicate 2-3 hours weekly to data analysis, scientific computing libraries (NumPy, SciPy, Pandas), and machine learning fundamentals. MATLAB is equally critical for physics applications, particularly numerical simulations and data visualization. Aim to complete MATLAB certification courses within your first year.
Research Tools: Learn Git/version control, LaTeX for scientific documentation, and data analysis frameworks. These skills are indispensable for publishing research papers and collaborating on projects.
Certifications Worth Pursuing: (1) MATLAB Certification (DIYguru or MathWorks official courses) (2) Python for Data Science (complete certificate programs from platforms like Coursera) (3) Machine Learning Fundamentals (for expanding technical versatility) & (4) Scientific Communication and Technical Writing (develop through departmental workshops)
Strategic Internship Planning: Leverage Amrita's research connections systematically. In your third year, apply to BARC Summer Internship, IISER Internships, TIFR Summer Fellowships, and IIT Internship programs (like IIT Kanpur SURGE). These expose you to frontier research while establishing connections for future PhD or scientist recruitment. Target 2-3 research internships across different specializations to develop versatility.

TO SUM UP, Your Integrated M.Sc Physics degree from Amrita positions you exceptionally well for competitive research careers at IISc/IITs, prestigious government scientist roles at BARC/DRDO/ISRO, and international PhD opportunities. The program's scientific computing emphasis differentiates you in the job market. Immediate priorities: (1) Master Python and MATLAB within the first two years; (2) Engage in research projects starting year 2-3; (3) Target internships at premiere research institutions; (4) Prepare GATE while completing your degree for maximum flexibility in recruitment; (5) Consider UGC-NET for long-term academic stability. Your career trajectory will ultimately depend on developing strong research fundamentals, demonstrating consistent excellence in specialization areas, and strategically selecting internship and research opportunities. The rigorous Amrita program combined with disciplined skill development positions you for exceptional career success across multiple sectors. Choose the most suitable option for you out of the various options available mentioned above. All the BEST for Your Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.
Asked on - Dec 07, 2025 | Answered on Dec 07, 2025
Thankyou
Ans: Welcome Sree.

...Read more

Ramalingam

Ramalingam Kalirajan  |10872 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 06, 2025

Asked by Anonymous - Dec 06, 2025Hindi
Money
Dear Sir/Ma'am, I need some guidance and advice for continuing my mutual fund investments. I am a 36 year old male, married, no kids yet and no debts/liabilities as such. I have couple of savings in PPF, NPS, Emergency funds and long term investing in direct stocks. I recently started below mentioned SIPs for long term to grow wealth. Request you to review the same and let me know if I should continue with the SIPs or need to rationalize. Kindly also advice on how to invest a lumpsum amount of around 6lacs. invesco small cap 2000 motilal oswal midcap 2700 parag parikh flexicap 3000 HDFC flexicap 3100 ICICI prudential largecap 3100 HDFC large and midcap 3100 HDFC gold etf FOF 2000 ICICI Pru equity and debt fund 3000 HDFC balanced advantage fund 3000 nippon india silver etf FOF 2000
Ans: You already built a solid foundation. Many investors delay planning. But you started early at 36. That gives you a strong advantage. You have no liabilities. You have long term thinking. You also have diversified savings like PPF, NPS, Emergency funds and direct stocks. That shows clarity and discipline. This approach builds wealth with less stress over time.

You also started systematic investments in equity funds. That is a positive step. Your selection covers multiple categories like large cap, mid cap, small cap, flexi cap, hybrid and precious metals. So the intent is right. You are trying to create a broad portfolio. That gives balance.

» Your Portfolio Composition Understanding
Your current SIP list includes:

Small cap

Mid cap

Flexi cap

Large cap

Large and mid cap

Hybrid category

Gold and Silver FoF

Equity and Debt allocation fund

Dynamic hybrid fund

This shows you are trying to cover many segments. But too many categories can create overlap. When there is overlap, you get confusion during review. It also makes portfolio discipline difficult. You may think you are diversified. But the holdings inside may repeat. That reduces efficiency.

Your portfolio now looks like:

Equity dominant

Hybrid for stability

Metals for hedge

So the broad direction is fine. But simplifying helps in long-term habit building.

» Fund Category Duplication
You hold:

Two flexi cap funds

One large and mid cap fund

One pure large cap fund

One mid cap fund

One small cap fund

Flexi cap funds already invest across large, mid, small. Then large and mid also overlaps. So the large cap exposure gets repeated. That may not add extra benefit. But it increases monitoring complexity.

So I suggest rationalising. Keep one fund per category in core. Keep satellite space for only high conviction.

» Core and Satellite Strategy
A structured portfolio follows core and satellite method.

Core portfolio should be:

Simple

Long term

Stable

Satellite portfolio can be:

High growth

Concentrated

Based on your thinking level, you can structure like this:

Core funds:

One large cap

One flexi cap

One hybrid equity and debt fund

One balanced advantage type fund

Satellite funds:

One mid cap

One small cap

One metal allocation if needed

This division gives clarity. You can continue SIPs with review every year. No need to stop and restart often. That reduces behavioural mistakes.

» Your Current SIP List Review with Suggested Streamlining

You can consider continuing:

One flexi cap

One large cap

One mid cap

One small cap

One balanced advantage

One equity and debt hybrid

You may reconsider keeping both flexi caps and both gold silver funds. One of each category is enough. Because too many funds do not increase returns. It complicates tracking.

Precious metal funds should not be more than 5 to 7 percent in your portfolio. This is because metals are hedge assets. They do not create compounding like equity. They act as protection during cycles. So keep them small.

» How to Use the Rs 6 Lakh Lump Sum
You asked about lump sum investing. This is important. Lump sum should not go fully into equity at one time. Markets move in cycles. So use a staggered method. You can invest the lump sum through STP (Systematic Transfer Plan). You can keep the amount in a liquid fund and set STP toward your chosen growth funds over 6 to 12 months.

This reduces timing risk. It also creates discipline. So your Rs 6 lakh can be deployed gradually. You may use 50% towards core equity funds and 30% toward satellite growth category. The remaining 20% can go into hybrid category. This gives balance and comfort.

» Regular Funds Over Direct Funds
One important point many investors miss. Direct funds look cheaper. But they demand deep knowledge, discipline, and behaviour control. Most investors lose more through emotional selling and wrong timing than they save on expense ratio.

With regular funds through a Mutual Fund Distributor with Certified Financial Planner qualification, you get guidance, structure and correction. The advisory discipline protects you during market extremes. That is more valuable than a small saving in expense ratio.

A personalised planner also tracks portfolio drift, rebalancing need and category shifts. So regular fund investing gives long-term benefit and behaviour coaching.

» Actively Managed Funds over Index or ETF
Some investors choose index funds or ETF thinking they are simple and cheap. But they ignore drawbacks.

Index funds or ETF will not avoid weak companies in the index. They will invest whether the company grows or struggles. There is no fund manager decision making. So when markets are at peak, index funds continue aggressive exposure. In downturns also they fall fully. There is no cushion.

Actively managed funds work with research teams. They can avoid bad sectors. They can shift allocation based on market and economy. Over long term, this gives better alpha and stability. So continuing with actively managed funds creates better wealth compounding.

» SIP Continuation Strategy
Once the rationalisation is done, continue SIPs every month without interruption. Pause and restart behaviour damages compounding power. SIP works best when you go through all market cycles. You benefit more during corrections because cost averaging works.

So continue SIP amount. You can also review SIP increase every year based on income. Increasing SIP by 10 to 15 percent every year helps you reach large corpus faster.

» Asset Allocation Based Approach
One key point in wealth creation is having the right asset mix. Equity gives growth. Hybrid gives balance. Metals give hedge. Debt gives safety. Your asset allocation should stay aligned to your risk profile and time horizon.

Since you are young and have long term horizon, higher equity allocation is fine. But as time moves, rebalancing is important. Rebalancing protects gains and restores allocation.

So review your asset allocation every year or during major life events like child birth, home buying or retirement planning.

» Behaviour Management
Many portfolios fail not due to bad funds. They fail due to bad decisions. Selling during correction. Stopping SIP when market falls. Chasing past return performance. These mistakes reduce wealth.

Your discipline so far is good. Continue to stay patient during volatility. Equity rewards patience and time.

» Financial Goals Clarity
Since you have no children now, you can decide your long-term goals. Typical goals may include:

Retirement

Future child education

Dream lifestyle purchase

Health care reserves

When goals are clear, investment purpose becomes stronger. So you can map each fund category to goal horizon. Short-term goals should not use equity. Long-term goals should use equity with hybrid support.

» Role of Review and Monitoring
Review once in a year is enough. Frequent review can create anxiety. Annual review helps check:

Fund performance

Expense drift

Category relevance

Allocation balance

Then adjust only if needed. This progress helps you stay confident and aligned.

» Taxation Awareness
Equity mutual funds taxation rules are:

Short term (below one year holding) taxable at 20 percent

Long term (above one year holding) gains above Rs 1.25 lakh taxable at 12.5 percent

Debt mutual funds are taxed as per your income slab.

So always hold equity funds for long term. That reduces tax impact and gives better growth.

» SIP Increase Plan
You can create a simple plan to increase SIP over time. For example:

Increase SIP at every salary increment

Increase SIP during bonus time

Use rewards or extra income for investing

This habit accelerates wealth. So by the time you reach 45 to 50 years, your investments could reach a strong level.

» Insurance and Protection
Before investing large, ensure you have term insurance and health insurance. If not already done, it is important. Insurance protects wealth. Without insurance, even a small medical event can impact investment plan. So review this part also. Since you are married, cover both.

» Wealth Behaviour Mindset
You are already disciplined. Just keep these simple principles:

Invest without stopping

Review once a year

Avoid funds overlap

Follow asset allocation

Avoid reacting to media noise

This helps you reach long term milestones.

» Finally
You are on the right track. Only fine tuning and simplification is needed. Your discipline is visible. Your portfolio will grow well with structure, patience and periodic review. Use the Rs 6 lakh with STP approach. And continue SIP with rationalised categories.

With time and consistency, wealth creation becomes effortless and peaceful. You just need to stay committed and avoid overthinking during market movements.

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Dr Dipankar

Dr Dipankar Dutta  |1837 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Dec 05, 2025

Career
Dear Sir, I did my BTech from a normal engineering college not very famous. The teaching was not great and hence i did not study well. I tried my best to learn coding including all the technologies like html,css,javascript,react js,dba,php because i wanted to be a web developer But nothing seem to enter my head except html and css. I don't understand a language which has more complexities. Is it because of my lack of experience or not devoting enough time. I am not sure. I did many courses online and tried to do diplomas also abroad which i passed somehow. I recently joined android development course because i like apps but the teaching was so fast that i could not memorize anything. There was no time to even take notes down. During the course i did assignments and understood the code because i have to pass but after the course is over i tend to forget everything. I attempted a lot of interviews. Some of them i even got but could not perform well so they let me go. Now due to the AI booming and job markets in a bad shape i am re-thinking whether to keep studying or whether its just time waste. Since 3 years i am doing labour type of jobs which does not yield anything to me for survival and to pay my expenses. I have the quest to learn everything but as soon as i sit in front of the computer i listen to music or read something else. What should i do to stay more focused? What should i do to make myself believe confident. Is there still scope of IT in todays world? Kindly advise.
Ans: Your story does not show failure.
It shows persistence, effort, and desire to improve.

Most people give up.
You didn’t.
That means you will succeed — but with the right method, not the old one.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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