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Ramalingam Kalirajan |11060 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 17, 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

Asked by Anonymous - Feb 17, 2026Hindi

Respected sir, I am 38 years old working in private company in Noida with own house in delhi. My salary is 65000 ruppes monthly . I have 25 lakhs in Fixed deposit, 4 lakhs in saving account, 8 lakhs in PPF account and 4 lakhs in EPS account. My wife, who is 34 years old, also earns with 40000 ruppes monthly salary as scholarship. We have no child yet. We are planning for child this year. I have just started Mutual funds 5000 ruppes SIP from january month. I have 1 old LIC policy that will mature in i think 2030 and will give 300000 rupees on maturity. I have only 2 lakhs health insurance cover form office. Though , I can cover it to 5 or 10 lakh. I have death cover of 2500000 rupees upon my death from my present company, which will be paid to my nominee. Please advise for them . Present Monthly SIP Amount -₹5,000 Active SIPs (4) 1. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund – Direct Growth ₹1,000 Due Date: 20 Feb 2. Parag Parikh Flexi Cap Fund – Direct Growth ₹1,000 Due Date: 21 Feb NAV date will be 23 Feb as 21 Feb to 22 Feb are holidays. 3. SBI Silver ETF FoF – Direct Growth ₹2,000 Due Date: 23 Feb 4. HDFC Balanced Advantage Fund – Direct Growth ₹1,000 Due Date: 26 Feb 5. Invest 10000 ruppes One time amount into HDFC Balanced Advantage Fund – Direct Growth mutual fund. Thanks

Ans: Your effort to organise finances at 38, along with stable income for both of you and owning a house, deserves appreciation. Starting mutual funds, maintaining savings, and planning for a child show good intent and responsibility. With a few corrections now, your future can become much more secure and peaceful.

» Current financial position assessment
– Your combined household income is stable and predictable.
– Owning a house removes a big future burden.
– Fixed deposits form a large part of your wealth, giving safety but low long-term growth.
– PPF and EPS add long-term stability, which is positive.
– Mutual fund investing has just begun and needs direction.
– Insurance protection is clearly inadequate at this stage of life.

» Emergency fund and cash management
– You already have sufficient money in FD and savings account.
– This is more than enough for emergency needs.
– No further accumulation is required in savings or FD now.
– Excess FD money should be gradually redirected towards long-term growth assets.

» Health insurance planning before child
– Office health cover of Rs. 2 lakh is not sufficient.
– You should immediately opt for at least Rs. 10 lakh family floater from office if available.
– Once a child arrives, medical expenses increase sharply.
– Employer cover should not be your only protection; portability and continuity matter.
– Health insurance must be strong before pregnancy-related planning.

» Life insurance reality check
– Company-provided death cover of Rs. 25 lakh is not reliable long term.
– Job change or job loss can remove this cover instantly.
– With a dependent spouse and future child, this cover is inadequate.
– A separate pure term insurance policy is essential for long-term family security.
– Insurance should protect income, not just exist on paper.

» LIC policy review
– The LIC policy maturing at Rs. 3 lakh in 2030 gives poor growth.
– It neither provides meaningful insurance nor good returns.
– Such investment-cum-insurance products slow wealth creation.
– If surrender value is reasonable, it is better to exit and redirect funds into mutual funds.
– Insurance and investment must remain separate.

» Mutual fund portfolio evaluation
– The current SIP selection lacks clarity and balance.
– Sector-focused funds increase risk without adding stability at this stage.
– Silver ETF FoF does not generate income and can remain stagnant for long periods.
– Too many small SIPs reduce impact and increase confusion.
– Balanced strategies are fine, but equity growth needs stronger structure.

» Concerns with direct mutual fund investing
– Direct funds demand strong knowledge and continuous monitoring.
– Wrong fund selection or poor rebalancing can hurt long-term returns.
– Most investors exit at the wrong time without guidance.
– Regular funds through a Mutual Fund Distributor guided by a Certified Financial Planner offer discipline, review, and hand-holding.
– Behaviour management matters more than expense ratio in real life.

» Asset allocation correction strategy
– Gradually reduce dependency on fixed deposits for long-term goals.
– Increase equity-oriented mutual funds in a structured manner.
– Keep debt instruments only for safety and near-term needs.
– Avoid thematic and commodity-heavy exposure at this stage.
– Simplicity and consistency will work better than experimentation.

» SIP amount and scaling plan
– Rs. 5,000 SIP is a good start but not sufficient for future goals.
– Once expenses stabilise, SIP should be increased in steps.
– Salary hikes should directly translate into higher SIPs.
– Long-term wealth comes from discipline, not one-time investments.
– One-time investment into balanced strategies is acceptable, but focus must remain on regular investing.

» Child planning and future goals
– Child education and healthcare will be major expenses in future.
– Early planning reduces stress later.
– Equity exposure over long periods helps manage rising education costs.
– Insurance, emergency fund, and stable investments must be in place before aggressive growth.

» Final Insights
– You are not late; you are at the right stage to correct course.
– Insurance protection needs urgent strengthening.
– LIC-style policies should be exited and redirected for better growth.
– Mutual fund strategy needs simplification and professional guidance.
– With discipline and right structure, you can build a strong, stress-free future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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