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Ulhas

Ulhas Joshi  | Answer  |Ask -

Mutual Fund Expert - Answered on May 12, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Satya Question by Satya on May 11, 2023Hindi
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My name is satya age 38 years old. I work in a software company. I have two children, ages 3 and 1 Years old. I am new to MF and wanted to invest an amount of 12K per month for a long term of nearly 15 years. To create a corpus of 1 crore. My priorities: a. Children's education. b. Retirement. Please suggest to me which are the best SIPs to invest for 15 years.

Ans: Hi Satya, thanks for writing to me.

To create a corpus of Rs.1 Crore in 15 years, you need to begin by investing Rs.12,000 in this year and then annually stepping up your SIP's by at least Rs.2,000 every year.

You can consider monthly SIP's as I mention below:
1-Edelweiss Nifty 100 Quality 30 Index Fund-Rs.3,000
2-Axis ESG Fund-Rs.3,000
3-UTI MNC Fund-Rs.3,000
4-SBI Focused Equity Fund-Rs.3,000
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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Ramalingam

Ramalingam Kalirajan  |9785 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

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Hello Dev, I am 32 years old and would like to start SIP for 5k per month to create retirement corpus of 1 crore. Also would like to generate 30 lacs in another 10 years for closing housing loan. Already have three MF SIP as below. Quant active fund 1000 Quant ELSS tax saver fund 500 ICICI prudential corporate bond fund 150 Kindly suggest in which MF should I invest further and also how much should I increase the SIP amount to achieve the above goals. Thank you.
Ans: It's great to see your proactive approach towards planning for your financial future. Your dedication to investing is commendable.
Starting an SIP with 5k per month is a wise decision to create a retirement corpus of 1 crore. Additionally, generating 30 lakhs in 10 years to close your housing loan is a smart goal.
Considering your existing SIPs in Quant Active Fund, Quant ELSS Tax Saver Fund, and ICICI Prudential Corporate Bond Fund, you have a good foundation. However, to diversify your portfolio and align it with your goals, you may want to consider the following suggestions:
1. Equity-oriented funds with higher growth potential can help you achieve your long-term goals. Look into diversified equity funds or multi-cap funds for exposure to various segments of the market.
2. Since your investment horizon is long-term, you can afford to take slightly higher risks for potentially higher returns. Adding more equity-oriented funds can help you achieve this.
3. To generate the required amount for your housing loan closure in 10 years, you may need to increase your SIP amounts gradually. Consider reviewing your financial situation periodically and increasing your SIP contributions accordingly.
4. As a Certified Financial Planner, I recommend staying disciplined with your investments and adhering to your financial plan. Regularly review your portfolio's performance and make adjustments as needed to stay on track towards your goals.
By diversifying your portfolio and gradually increasing your SIP amounts, you can work towards achieving your financial objectives effectively.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9785 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 2024

Asked by Anonymous - Apr 07, 2024Hindi
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Hello Sir, I want to invest 25k monthly in SIP with retirement and child education as investment goal . I am also planning to step up the SIP amount every year after I get the increment. Could you please tell me in which MF fund should I invest and how much should I increase the SIP amount very year. Target corpus ( investment horizon - 15 years) Retirement (least amount ) - 4-5 Cr Child Education - 4-5 Cr My wife is also working and can invest 15k more in addition to above amount.
Ans: Given your investment goals and time horizon, here's a suggested investment plan:

Retirement Corpus:

Allocate a significant portion of your SIP amount to large-cap, multi-cap, and diversified equity funds.
Large-cap funds offer stability, while multi-cap and diversified equity funds provide growth potential.
Gradually increase SIP amounts annually to keep pace with inflation and salary increments.
Child Education Corpus:

Diversify your SIPs across large-cap, multi-cap, balanced, and thematic funds.
Large-cap funds offer stability, while multi-cap and balanced funds provide growth potential with lower volatility.
Thematic funds can be considered for specific sectors or themes with growth potential, but exercise caution due to higher risk.
Combined SIP Allocation:

Allocate SIP investments based on your risk tolerance, investment horizon, and financial goals.
Balance the allocation between retirement and child education based on priority and time horizon.
Gradually increase SIP amounts annually to align with your financial goals and growing expenses.
Review and Monitoring:

Regularly review the performance of your SIP investments and adjust asset allocation if necessary.
Seek advice from a financial advisor to periodically assess your progress and make any required adjustments to stay on track with your goals.
By following a diversified investment approach and gradually increasing your SIP amounts over time, you can work towards building a substantial corpus for both your retirement and your child's education.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |9785 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 19, 2025

Asked by Anonymous - Jul 19, 2025Hindi
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Am 32 years old with salary of 1 lakh per month and monthly expenses of around 60-70k as am single earning member of my family of 5, recently married, no kids and all my savings have been depleted in marriage and I don't have any savings or investment. I only have one term insurance of 1 crore and medical coverage for myself of 10 lakh and PF of around 1lakh. I would like to start savings & investment journey to retire by 50 but I also have to buy a house(cost around 40 lakh) in next 10 years & car in next 4 years. Please guide me what should be my savings and investment strategy
Ans: You are 32 years old. You have just started your married life.
You have no savings currently but have a steady income. You are also supporting your family.
You want to buy a car in 4 years, a house in 10 years, and retire by 50.
These are clear and realistic goals. Starting now with the right plan is very important.

Let’s look at your profile in a 360-degree view and build a complete strategy for your savings and investments.

? Family and Financial Responsibilities

– You are newly married and supporting a family of 5.
– You are the only earning member at present.
– You have no kids now, but this may change in a few years.

Right now, your family depends fully on your income. So, stability and discipline are very important.

? Income and Expense Overview

– You earn Rs. 1 lakh per month.
– Monthly expenses are Rs. 60K–70K.

This leaves you with Rs. 30K–40K surplus per month.
This is a strong base to begin your financial journey.

It is very important to save at least Rs. 25K from this every month.

? Current Assets and Insurance Cover

– Term insurance of Rs. 1 Cr is active.
– You have health cover of Rs. 10L for yourself.
– EPF balance is around Rs. 1L.
– No other savings or assets currently.

You have taken the first correct steps by starting term and health cover.
Make sure health cover includes family members as they are dependent on you.
As you grow older, adding family floater will be a wise move.

? Emergency Fund Is Your Next Priority

– You don’t have any emergency fund now.
– This is your first and most urgent step.

Start building a minimum of Rs. 1.5L–2L over the next 6 months.
This should be parked in a safe liquid or ultra-short debt fund.
Do not invest this in equity. Keep it easily accessible.

This is your buffer for job loss, hospital expenses, or urgent needs.

? Set Your Financial Goals Clearly

You have shared three goals. Let's plan them in detail:

– Car purchase (Rs. 8–10L in 4 years)
– House purchase (Rs. 40L in 10 years)
– Retirement (at age 50, in next 18 years)

All these goals have different timelines. So, different strategies are needed.

? Goal 1: Car Purchase in 4 Years

– Budget is around Rs. 8–10L.
– Don’t take a car loan. Start saving monthly instead.

Invest Rs. 10K–12K/month in ultra-short or short-term debt funds.
These are safer for short-term goals. They give better returns than FDs.

Avoid equity mutual funds for this goal. You don’t have enough time to recover losses if the market falls.

When goal is 12 months away, move all funds to liquid fund.

Car is a depreciating asset. So, buy within your means. Avoid emotional spending here.

? Goal 2: House Purchase in 10 Years

– Estimated cost: Rs. 40L.
– You may need Rs. 8L–10L as down payment.

For this goal, equity mutual funds can be used in the beginning.
But slowly reduce risk as you approach the goal year.

Invest Rs. 10K–12K/month into actively managed mutual funds.
Avoid index funds. They are average performers and don’t protect you during market falls.

Actively managed funds, when reviewed regularly, give better outcomes.
Start with a mix of large-cap and flexi-cap mutual funds.

Do not choose direct plans without advisor help.
– Direct plans have no guidance, no reviews, and lead to poor fund choice.
– Regular plans with MFDs who are CFPs provide goal-based planning and corrections.

When you are 3 years away from the house goal, shift from equity to debt funds.
This protects you from market risk. Don’t let a market crash affect your house plan.

? Goal 3: Retirement by Age 50

– You have 18 years to build retirement wealth.
– Since you have no savings now, this needs focus.

Start with Rs. 8K–10K/month into actively managed mutual funds.
You can increase this as your income grows.

Choose a mix of large-cap, flexi-cap, and balanced advantage funds.
Don't invest all in aggressive funds. Balance is key.

EPF and retirement corpus must grow side by side.
Don’t withdraw EPF early. Let it compound.

Also, consider opening NPS to get tax benefit and build retirement asset.
Limit NPS to 10–15% of total retirement plan. Too much NPS can reduce post-retirement liquidity.

Do not depend on real estate for retirement. It is illiquid.
Also, rental income is uncertain and property sales take time.

Keep equity mutual funds as your main retirement engine.

Review the plan every 2 years with a Certified Financial Planner.

? Systematic Investment Plan (SIP) Allocation

With Rs. 30K–35K surplus, you can follow this SIP plan:

– Rs. 10K/month → Car purchase (in debt funds)
– Rs. 12K/month → House down payment (in equity funds)
– Rs. 10K/month → Retirement goal (in diversified mutual funds)
– Rs. 2K–3K/month → Emergency fund (in liquid fund)

As your income increases, raise SIPs each year by 10–15%.

Stick to this discipline for the next 5 years and your financial position will be strong.

? Don’t Take Investment Advice from Banks or Unqualified Sources

Avoid random product selling by banks.
They push what earns them the most, not what suits you.

Avoid endowment, ULIP, or investment-insurance policies.
These give poor returns, long lock-ins, and very little flexibility.

Also, avoid annuities in future. They give fixed income, but poor inflation adjustment.

You need flexible, growing income after retirement. Mutual funds offer that.

? Avoid Index Funds and Direct Plans

Index funds look cheap but come with big disadvantages:
– No downside protection during market crash
– Poor performance during sideways markets
– Cannot outperform benchmarks
– Passive strategy may not meet your goal timelines

Direct mutual funds are low-cost, but come with high risk for new investors:
– No guidance
– No goal tracking
– High chances of wrong fund selection
– No portfolio review or corrections

Regular funds via a Mutual Fund Distributor with CFP help offer better goal-based investing.
The advisory support helps you avoid mistakes and stay on course.

? Tax and Investment Planning

Use EPF and NPS for tax savings under Section 80C and 80CCD(1B).
Start SIPs in ELSS only if you haven’t reached the 80C limit.

Plan MF redemptions smartly to avoid capital gains tax.
As per new rules:

– LTCG above Rs. 1.25L/year on equity MFs is taxed at 12.5%
– STCG is taxed at 20%
– Debt fund gains are taxed as per your slab

So always avoid churning funds without need. Review redemptions carefully.

? Next 6 Months Plan of Action

– Build Rs. 2L emergency fund in liquid funds
– Start SIP of Rs. 10K/month in debt funds for car goal
– Start Rs. 12K/month SIP in equity funds for house goal
– Start Rs. 10K/month SIP for retirement
– Avoid new liabilities or emotional spends

Track each SIP goal separately. Don’t mix funds.
Label your folios for clear tracking (car, house, retirement, etc.)

? Final Insights

You are starting at zero. But you have time on your side.
A disciplined start today will build a safe future.

Start slow, but stay consistent. Avoid reacting to short-term events.

Invest with a Certified Financial Planner who offers regular tracking.
You will avoid mistakes and reach your financial goals in time.

Your future is in your hands. Plan it with patience and proper direction.

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

...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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