Randomly google suggested me ur ask mf and read this page many times, today i have an question regarding my investments.

Mainly i am investing for my retirement but i want to spare something for my 2 daughter's marriages, but not able to decide how. I have created two folios myself without any knowledge, read google, watched youtube and started investing... First folio, all direct fund sips:

1. axis nifty 100 index-500

2. parag parikh flexi-1000

3. axis small cap-500

4. nippon small cap-500

5. icici midcap 150 index-500

6. icici nasdaq 100-100

7. icici technology-500

Total-4000rs

Second folio with wife id:

1. pgim india flexi cap-1000

2. axis small cap-1000

3. nippon small cap-1000

4. axis nifty 100 index-lumpsump only

Total 3000rs

Started from 500rs month and reached 7000 in 1.5years, have plan to step up sip by 5-10% every year now.

Sir, daughters age are 13 and 7. didnt know about sip and mf 2 years back, else i wud have done this from many years.

Kindly suggest me best for future. 

Goals r daughters education (priority)

Daughters marriage (secondary)

Retirement (last but very imp.)

Ans: No changes are required; however, please keep the expectation of returns between 12% and 15%.

Basic thumb rule is risk free returns (10 years govt bond returns) + inflation + equity risk premium.

Ans: It's commendable that you've started investing and are thinking ahead for your daughters' education and marriage. Let's review your current investment choices and see if any adjustments are needed.

Your portfolio seems diversified across various mutual funds, covering different segments of the market. However, it's essential to ensure that your investments align with your financial goals and risk tolerance.

Given your daughters' ages and the timeframe for their education and marriage, you have a reasonably long investment horizon. This allows you to consider a balanced approach between growth-oriented and stable investments.

Regarding specific funds, while I can't provide detailed recommendations on individual schemes, I can offer some general guidance. Evaluate each fund's performance, expense ratio, and consistency over time. Ensure that the funds you've chosen have a track record of delivering returns in line with your expectations and risk profile.

Regularly monitor your portfolio's performance and make adjustments as needed. As your daughters' milestones approach, you may consider gradually shifting your investments to more conservative options to safeguard the capital.

Remember, investing is a long-term commitment, and patience is key. Stick to your investment strategy, and avoid making impulsive decisions based on short-term market fluctuations.

Consider consulting with a Certified Financial Planner to get personalized advice tailored to your financial goals and family needs. They can help you fine-tune your investment strategy and ensure you're on track to meet your objectives.

Keep up the good work with your investments, and stay focused on your long-term financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: You’ve done a lot of good things already.

Strong insurance, growing MF corpus, steady income, and careful trading discipline.

You’re asking the right question at the right time — How do I secure my children’s education without any risk?

This is a perfect moment to design a 360-degree financial strategy focused on certainty, not just returns.

Let’s assess this together.

Priority: Ensure Certainty for Your Children’s Future
Higher education is a non-negotiable financial goal

You must ensure it happens with 100% confidence, even in worst-case scenarios

For this, you should not take unnecessary risk on this goal

Your Rs. 50K/month surplus must work safely towards this target

Your trading income can continue — but should not be used for this goal

That money can be used later for early retirement or wealth building

Let us now break this down in practical terms.

Education Goals Should Be Firewalled from Market Risk
Your son is 5. He will need funds at 18. That’s 13 years ahead.

Your daughter is 2. Her goal is about 16 years away.

You have a clear time horizon, which is a huge advantage

This allows disciplined planning using equity mutual funds

But not every kind of equity exposure is suitable for this purpose

Volatility is good for long-term wealth — but not for goal-specific milestones

Hence, use mutual funds wisely, not randomly

Why Trading Is NOT Right for Education Goals
Let’s accept — you are skilled in trading.

Still, it has no place in goal-based investing.

Trading is always risky, no matter how skilled you are

A single bad year can wipe out returns or even capital

For children’s education, you need stability, not thrills

Trading may be used to create wealth, not to meet fixed goals

It’s like doing stunts when taking your kids to school — not required

So, don’t mix trading portfolio with education funding

Keep both completely separate

Mutual Funds: The Better Path for Goal Certainty
You already have Rs. 31.5 lakhs in mutual funds.

This is a great start.

Add your Rs. 50K/month to these investments for next 10 to 15 years

Stick to diversified equity mutual funds managed by experienced professionals

Prefer regular funds through Certified Financial Planner

Avoid direct funds — they give no support or guidance when markets fall

Regular funds help you stay on track through proper advice and handholding

Most investors in direct plans panic or make mistakes during corrections

Also avoid index funds — let me explain why.

Why Index Funds Are Wrong for Education Goals
Index funds are popular because of low cost.

But cost is not the full story.

Index funds blindly follow the index, good or bad

They cannot switch sectors or stocks during market crisis

In 2008 and 2020, index funds fell hard and took long to recover

No strategy, no protection, no risk filter — only blind following

For children’s education, this is not acceptable

You need actively managed funds with clear strategy and consistent performance

Fund manager must take calls during bull and bear phases

That’s why actively managed funds in regular plans are ideal.

Suggested Mutual Fund Strategy (Without Scheme Names)
You should have a structured portfolio with these layers:

Flexi Cap Fund: Core growth, across market caps

Large & Mid Cap Fund: Balanced growth with limited volatility

Aggressive Hybrid Fund: Mix of equity and debt, smoother ride

Mid Cap Fund (Optional): Only if risk appetite is high

You don’t need small cap, sectoral, or international funds for this goal.

Keep portfolio simple, diversified and review annually

Avoid new fund offers or thematic stories — no relevance to education goals

SIPs with Annual Step-Up = Perfect Tool
You are already stepping up SIP by 10% yearly

This is an excellent habit.

It helps fight education inflation (around 8% yearly in India)

It uses compounding effectively with growing contribution

Continue Rs. 50K SIP in 3-4 carefully selected schemes

Review performance yearly with your Certified Financial Planner

If any fund underperforms for 3 years, switch it safely to better option

Don’t decide based on one-year returns or market noise

Use Goal-Specific Buckets for Children
It helps to break your SIPs into 2 buckets:

Bucket A: Son’s Higher Education

SIP for next 13 years

Use Flexi Cap + Large & Mid Cap + Hybrid mix

Bucket B: Daughter’s Higher Education

SIP for next 16 years

Slightly more aggressive portfolio acceptable

This way, goals remain separate, tracked, and managed individually

Don’t combine all goals into one single MF portfolio

Use STP for Final 3 Years Before Goal
When each child is 15, shift SIP value to low-risk funds

Use Systematic Transfer Plan (STP) to move from equity to debt gradually

This protects the amount from sudden market crashes

This should be planned in advance

CFP will help manage these switches without emotional panic

Many investors ignore this and lose money just before goal date

You must protect capital when goal is near

Tax Awareness Is Also Important
New tax rules are simple:

Equity mutual funds:
LTCG above Rs. 1.25 lakh taxed at 12.5%
STCG taxed at 20%

Debt mutual funds:
Taxed as per your income slab

Keep records of all redemptions for capital gain tracking

During withdrawal, your Certified Financial Planner will help with efficient tax management

Emergency Fund and Insurance Are Strong Already
You already have Rs. 8 lakh emergency fund.

Also Rs. 2 crore term life cover and Rs. 15 lakh health cover.

This makes your foundation very strong.

So your Rs. 50K/month can be safely invested for future goals.

You don’t need more insurance, ULIPs, or endowment plans.

If you had LIC or any investment-cum-insurance — I would ask you to surrender.

Thankfully, your structure is clean and efficient.

Your Trading Portfolio Can Be Used Differently
Right now you have Rs. 35 lakh trading capital.

You are not withdrawing anything, which is fine.

Continue this — but use it for building long-term corpus.

Maybe for early retirement, luxury purchases or legacy.

But don’t consider this as children’s education backup

Because it’s not protected from market risk or psychological pressure

Use this power responsibly, not emotionally

Discipline is key — don’t mix trading and long-term investing

Simple Action Plan for You
Continue current SIPs with 10% step-up

Add new Rs. 50K SIP in carefully selected mutual funds

Keep children’s education funds separate from other goals

Avoid index funds, direct plans, ULIPs, and NFOs

Stick to regular plans through Certified Financial Planner

Review all funds every 12 months

From age 15 of child, shift money to debt slowly through STP

Let trading profits accumulate separately — don’t rely on it for family goals

Maintain emergency fund as it is — don’t use for investing

Keep tracking your goals, not the market

Finally
You are a responsible father and thoughtful investor.

Your current lifestyle, savings, and planning show high maturity.

Your children’s future can be secured easily — if you separate goal-based investing from trading returns.

Use mutual funds as your education engine.

Stay disciplined and guided by Certified Financial Planner.

That’s how you will not just grow wealth, but achieve goals without stress.

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

Ans: You have made good progress in your financial life. You have already built a solid foundation for your family. Your clear focus on your children’s future shows great planning mindset. Now, let’s work on creating a 360-degree strategy for your question.

You want to know whether your monthly surplus of Rs. 50,000 should go into mutual funds or your trading portfolio. Your main goal is ensuring uninterrupted higher education for your kids.

Let’s evaluate this from multiple angles and develop a solid plan.

 

Family Protection and Stability
You have a term life cover of Rs. 2 crore. This is suitable at your current income level.

 

Health cover of Rs. 15 lakhs from two sources is fine for now. Make sure the cover continues post-retirement.

 

Emergency fund of Rs. 8 lakhs is adequate for 4 to 5 months. Keep this amount safe in a liquid or overnight fund.

 

Your house is fully self-occupied. That gives you emotional and financial stability. Home loan EMI is manageable.

 

Mutual Funds Assessment
You have Rs. 31.50 lakhs invested in mutual funds. Your SIP is Rs. 30,000 per month, with a 10% annual increase.

 

You’re getting approx. 9.4% post-tax. That’s a good estimate for long-term returns.

 

This approach brings compounding benefits with much less risk than trading.

 

For your children's higher education goals, mutual funds are reliable and steady.

 

Use regular plans through a Mutual Fund Distributor with CFP qualification. They offer personalised guidance and behaviour management.

 

Direct funds lack regular reviews and support. Emotional discipline is hard without a professional.

 

The ongoing advice from a certified professional justifies the slightly higher cost of regular funds.

 

Trading Portfolio Assessment
Your trading capital is Rs. 35 lakhs. You earn around Rs. 50-55k monthly, which is around 17–18% yearly.

 

You use hedging and discipline. That’s rare and commendable for an individual trader.

 

However, trading always carries higher risk. You are the single point of control.

 

In case of health issues, burnout, or market stress, trading income may drop suddenly.

 

Your trading profits are not yet withdrawn. That’s good for compounding. But you must not depend on it for key goals like children’s education.

 

Don’t overexpose family goals to a high-volatility asset class like trading.

 

Children’s Education Planning
Your son is 5 and daughter is 2. So you have 12 to 16 years to build the corpus.

 

For both kids, higher education costs will rise with inflation. Foreign education may need Rs. 1 to 1.5 crore or more.

 

To build this large corpus, you need consistent growth with low downside.

 

Mutual funds can meet this need better than trading due to lower volatility.

 

Set two separate mutual fund buckets: one for your son and another for your daughter.

 

Allocate long-term SIPs to each child. Use goal-based investing strategy.

 

Consider a staggered withdrawal strategy 2-3 years before each education milestone. This reduces market timing risk.

 

Use a mix of diversified equity and hybrid funds. They balance growth and safety.

 

Ideal Use of Rs. 50,000 Surplus
Out of your monthly surplus of Rs. 50,000, invest Rs. 35,000 into mutual funds for your children’s education.

 

Use the remaining Rs. 15,000 to reduce your home loan principal faster.

 

Early loan repayment saves interest. It also gives you psychological peace.

 

Avoid investing this surplus in trading portfolio for now. It already has adequate capital.

 

Refrain from increasing your trading capital unless your core goals are fully funded.

 

Your Existing Mutual Fund SIP
Continue the Rs. 30,000 monthly SIP. Keep increasing it by 10% annually as planned.

 

Split the SIP across child education goal, your own retirement, and optional goals like a travel fund.

 

Tag each SIP to a specific goal. It brings more clarity and purpose.

 

Review fund performance once every 6 months with a Certified Financial Planner.

 

Switch schemes only if underperformance is consistent for more than 2 years.

 

Avoid switching based on 6-month return charts or short-term news.

 

Home Loan Strategy
Outstanding loan is Rs. 20 lakhs. EMI is Rs. 14,750. Tenure might be long.

 

Use bonus or annual surplus to prepay 1–2 lakhs every year.

 

Keep one EMI worth of funds as buffer for safety.

 

Close the home loan before your younger child reaches 10 years.

 

This way, you’ll be loan-free before major education costs begin.

 

Tax Planning and Future Inflation
Factor in inflation of 6-7% per year for all long-term goals.

 

Use SIPs in growth option. Withdraw using Systematic Withdrawal Plan near goal years.

 

Mutual Fund Capital Gains are taxed as per new rules.

 

Equity LTCG above Rs. 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

 

Keep track of capital gains annually. Plan redemptions accordingly.

 

File income tax returns carefully showing mutual fund and trading income separately.

 

What to Avoid
Don’t invest in ULIPs, traditional insurance plans, or endowment policies.

 

Don’t add to your trading portfolio for now. Your current capital is enough.

 

Don’t invest for children’s education in FD or gold. These can’t beat education inflation.

 

Don’t go for index funds. They lack active risk management and sectoral allocation.

 

Actively managed funds by seasoned fund managers give better flexibility and performance.

 

Stay away from direct funds. A trusted MFD with CFP helps avoid behavioural mistakes.

 

Don’t stop your SIPs during market fall. That’s when wealth is truly built.

 

Don’t use annuities. They are tax inefficient and inflexible.

 

Risk Management and Will
Keep your emergency fund in a safe and liquid form. Update it annually.

 

Nominate spouse and children in all investments.

 

Prepare a simple will. Mention mutual fund folios, trading accounts, and home ownership clearly.

 

Maintain a one-pager with account numbers, folio IDs, and insurance policy details.

 

Review this once a year with spouse. Keep it safe.

 

Monitoring and Review
Review your portfolio once every 6 months with your certified planner.

 

Don’t panic if markets fall. Your mutual fund SIPs benefit from this.

 

Review trading portfolio quarterly. Set a drawdown rule to limit risk.

 

Have a goal-wise dashboard. Track how much is accumulated for each child.

 

Rebalance your mutual fund portfolio every 2–3 years.

 

Increase SIPs as your income grows. Keep lifestyle inflation under check.

 

Final Insights
Your current setup is already strong. You have built a good financial foundation.

 

Your clarity about goal and savings discipline is rare and appreciable.

 

Now is the time to shift more focus on guaranteed future needs like child education.

 

Mutual funds bring low-risk, long-term compounding. Use it as your main tool.

 

Keep trading as a wealth booster. But don’t use it for children’s education funding.

 

Stick to regular mutual fund plans with goal-based approach through a trusted MFD with CFP credentials.

 

Avoid over-diversifying or over-trading. Simplicity and patience bring true financial freedom.

 

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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