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Ramalingam Kalirajan |11027 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 23, 2026

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 marines on Jan 22, 2026Hindi

I am planning to invest approximately ₹20,000 per month to meet my short- and medium-term financial goals. My primary objectives include funding my marriage in four years and my sister’s marriage in two years. In addition, I would like to plan for my long-term retirement goals and can invest ₹5,000 per month for the next 15 years or more. I request your guidance on suitable mutual fund options for both goals, preferably with exposure to equity and index funds, to optimize returns while aligning with my investment horizon and risk profile. Also i can increase year on year approx 10 %. Kindly suggest an appropriate investment strategy and mutual fund schemes for the above requirements. regards Shiju

Ans: You are thinking ahead and that itself gives you a strong advantage. Planning for family responsibilities and your own retirement at the same time shows clarity and maturity. With a step-up of 10 percent every year, your plan becomes even stronger.

» Understanding your goals and time frames
– Sister’s marriage is a short-term goal of around 2 years
– Your own marriage is a medium-term goal of around 4 years
– Retirement is a long-term goal of 15 years or more
– Monthly investment capacity is Rs 20,000 for short and medium term goals
– Monthly investment capacity is Rs 5,000 for long-term retirement
– You are comfortable with gradual increase every year

» Right asset approach for short-term goal (2 years)
– Capital protection is more important than high return here
– Equity exposure should be limited because market ups and downs can hurt the goal
– Focus should be on stability and liquidity
– Use low-risk mutual fund categories with limited equity exposure
– Avoid pure equity funds for this goal
– Start moving money to safer options as the goal date comes closer

» Right asset approach for medium-term goal (4 years)
– This goal allows some equity exposure but not aggressive risk
– Balanced approach works better than full equity
– Equity portion should reduce as you reach the 4th year
– Gradual shift from equity-oriented funds to safer funds is important
– This protects the money when the goal is near

» Why index funds are not suitable for your goals
– Index funds only copy the market and cannot protect you in falling markets
– There is no fund manager decision to control risk during bad times
– In short and medium-term goals, market falls can delay marriages or force loans
– Actively managed funds try to control downside risk
– Fund managers can move between sectors and stocks based on market conditions
– This flexibility helps in protecting capital and improving consistency

» Long-term retirement planning approach (15 years or more)
– This is where equity should play a bigger role
– Long-term goals can handle market ups and downs
– Actively managed equity funds suit this horizon well
– Consistent investing and annual step-up will build strong wealth over time
– Avoid chasing last year’s top-performing funds
– Stick to quality funds with stable management

» Why regular mutual funds through a Certified Financial Planner help
– Regular funds give you ongoing monitoring and rebalancing support
– Behaviour control is very important during market corrections
– Many investors exit at wrong times without guidance
– A Certified Financial Planner helps align investments with life goals
– Cost difference is small, but guidance value is very high

» How to use the 10 percent annual increase wisely
– Increase SIP amount every year after salary revision
– First priority should be retirement SIP increase
– Next priority is medium-term marriage goal
– This keeps long-term wealth creation on track

» Tax awareness for your planning
– Equity mutual funds sold within one year attract higher short-term tax
– Selling after one year is more tax efficient for long-term goals
– Plan redemptions carefully near goal dates
– Do not redeem entire amount in one shot unless needed

» Final Insights
– You are on the right path by separating goals clearly
– Avoid index funds and focus on actively managed funds for better control
– Match risk level strictly with goal time frame
– Annual step-up will quietly do the heavy lifting
– With discipline and timely review, all three goals can be met without stress

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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