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Ramalingam Kalirajan |11173 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 07, 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

Question by sharath on Aug 05, 2025Hindi

My name is Sharath my age is 32 years and I do not have any savings and married having 1 kid please advice my financial planning

Ans: You have taken the right first step by seeking financial guidance.

You are still young at 32. With careful planning, you can build wealth and security for your family. A good plan now can give your family financial strength in the coming years.

Let us create a clear, practical roadmap for your financial journey.

» Assessing Your Current Stage of Life

– You are in the early wealth-building phase.

– You are married with one child, so your responsibilities are increasing.

– No savings yet, which means the first focus is creating financial safety.

– Your financial plan must protect your family and grow your wealth.

– This is the time to start small but stay consistent.

» Creating an Emergency Fund

– Emergency fund gives you peace during tough times.

– Keep 4 to 6 months’ expenses in a liquid mutual fund.

– Use it only for true emergencies like job loss or medical needs.

– Start building it monthly, even if small. Rs. 2,000 per month is also fine.

– Don’t invest this money in equity or ULIPs or any locked-in products.

» Securing Your Family with Insurance

– Take a term insurance cover. Minimum 15 to 20 times your annual income.

– Don’t mix investment with insurance. Avoid ULIPs or endowment plans.

– Term insurance is low-cost and gives full protection to your family.

– For your child’s future, your life cover is the real foundation.

– Get health insurance for the whole family, including your child.

– It protects your savings from hospital costs.

– Also consider personal accident insurance.

» Budgeting and Spending Discipline

– Track every rupee you spend.

– Create monthly budget for essentials, education, rent, and EMI if any.

– Set a limit for lifestyle expenses like eating out, gadgets, etc.

– If you save first and spend later, your money will grow faster.

– Avoid credit card debt. Pay all bills on time.

– Use UPI, wallets and bank statements to monitor your expenses.

» Planning for Short-Term Needs

– List all goals within 1 to 3 years. For example: family trip, bike, school fee.

– Use only safe, short-term mutual funds for such goals.

– Avoid investing for short goals in equity mutual funds.

– For school fees, maintain a separate sinking fund and top it monthly.

– Always link investment with a clear purpose.

» Child’s Education and Future

– Education costs will rise fast. Start saving early for your child.

– Invest monthly in an equity mutual fund with goal of 15 years or more.

– Equity funds beat inflation when invested for long periods.

– Begin with a SIP of Rs. 3,000 to Rs. 5,000 per month if possible.

– Review the fund every year with your Certified Financial Planner.

– Avoid children plans from insurance companies. They give poor returns and low flexibility.

» Retirement Planning Starts Now

– Many people delay retirement planning. But starting early is a gift.

– You are only 32. Even Rs. 5,000 per month can grow into a big retirement corpus.

– Use actively managed mutual funds for long-term growth.

– Avoid index funds. They copy the market and don’t adjust in bad times.

– Active funds are flexible and guided by expert fund managers.

– Review retirement portfolio once every year with your planner.

– Don’t depend on EPF alone for retirement. It is not enough.

» Choosing the Right Investment Route

– Always invest through a Certified Financial Planner.

– Regular mutual fund route via an MFD with CFP credential offers better support.

– Direct funds may look cheaper but give no guidance.

– Many investors in direct plans make wrong choices and suffer losses.

– A good CFP tracks market, rebalances your portfolio, and reviews progress.

– Regular plans give access to expert help and proper monitoring.

– Don’t decide based on expense ratio alone. Focus on results and service.

» Protection from Wrong Products

– Stay away from ULIPs, endowment plans, and money-back policies.

– These are costly, low-return, and lock your money for long periods.

– Many investors realise late that these give neither good cover nor wealth growth.

– If you already have such policies, please consider surrendering them.

– Reinvest that money in proper mutual funds with guidance.

– Choose term insurance and mutual funds separately. That gives control and flexibility.

» Tax Saving Strategy

– Use Section 80C wisely. But don’t let tax saving be the only goal.

– Invest in equity-linked saving schemes (ELSS) through regular route.

– Don’t choose only based on past returns. Look at long-term performance and fund manager record.

– Avoid NPS if you want full flexibility at retirement. It has withdrawal limits.

– Mutual funds allow full freedom and liquidity.

– Take benefit of Sec 80D for health insurance premium.

» Dealing with Loans and Debts

– If you have personal loans or credit card dues, clear them fast.

– Personal loans carry high interest rates. Pay off aggressively.

– If possible, avoid taking new loans unless for assets like car or house.

– Don’t invest in mutual funds until high-interest loans are cleared.

– After clearing debts, divert EMI amount into SIPs.

» Review and Rebalance Regularly

– Financial planning is not a one-time task.

– You need annual review with your Certified Financial Planner.

– Track if goals are on track. Rebalance funds if needed.

– Remove non-performing funds. Shift to better ones.

– Stay invested during market ups and downs. SIP benefits come over long time.

– Don’t stop SIPs when market falls. That’s when you buy at lower cost.

» Managing Behaviour and Expectations

– Wealth creation is not quick. It takes time, patience, and discipline.

– Don’t try to time the market. Stay consistent with SIPs.

– Avoid panic in market crash. Good funds recover strongly.

– Avoid following friends or social media blindly for investment tips.

– Your journey is unique. Stick to your goals and plan.

» Teaching Your Child Financial Values

– As your child grows, teach them saving and value of money.

– Open a small savings account and let them see how money grows.

– Help them understand why planning is important.

– Children who learn money values early make better decisions later.

» Planning for Wife’s Financial Involvement

– Discuss all plans with your wife. Make her a partner in the journey.

– Keep joint access to emergency fund and investment details.

– If she is working, create individual goals and joint goals.

– If she is not working, ensure her financial security through insurance and retirement plan.

– Educated involvement avoids stress during emergencies.

» Avoiding Popular but Risky Choices

– Don’t buy products just because banks or agents push them.

– Always ask – what is the real benefit?

– Never buy based on emotion or pressure.

– Real estate may look tempting, but it lacks liquidity and transparency.

– Also needs huge funds and maintenance. Not suitable for early-stage investors like you.

» Finally

– You have taken the right step, Sharath.

– Starting now gives you huge advantage.

– Focus on protection, discipline, goal-based investing, and expert guidance.

– Avoid high-cost products and DIY mistakes.

– With smart planning, your family will enjoy financial freedom and peace.

– Stay focused, stay committed. Wealth will surely follow.

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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