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Ramalingam Kalirajan |10881 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jul 29, 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
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 - Jul 08, 2025Hindi
Please review my financial portfolio and provide recommendations. Age 39 Monthly inhand salary: 240000 Monthly expenses: 120000 Monthly savings: 120000 EPF Monthly contribution excluding inhand salary: 35000 SiP: Parag Parikh Flexi cap fund: 30000 Hdfc mid cap fund: 15000 Kotak equity opportunities fund: 10000 hdfc balanaced advantage fund: 10000 quant small cap fund: 8000 nippon small cap fund: 8000 other savings in bank for emergency as well as available for safe investment for short term goals like foreign trip: 20lakh EPF balance: 15lakh Have 8 year old son. Family health insurance 15lakh. Term insurance 4 Cr. Goals: Kids college education in 10 years: 1Cr Retirement in 20 years: 8 Cr
Ans: You are managing your money well. That is praiseworthy.
Your savings rate is strong. Investments are diversified. Insurance coverage is also thoughtful.
Let’s assess your portfolio and guide you with 360-degree suggestions.
? Income, Expenses and Surplus
– Monthly income is Rs. 2.4 lakh.
– Monthly expense is Rs. 1.2 lakh.
– You save the full remaining Rs. 1.2 lakh.
– Savings ratio is 50%. That is excellent.
– You also contribute Rs. 35K to EPF from employer and your share.
– Total monthly investments are even higher than Rs. 1.2 lakh.
– You are investing with discipline.
– That builds long-term financial stability.
? SIP Portfolio Overview
– You invest Rs. 30K in a flexi-cap fund. That gives diversification.
– Rs. 15K goes to a mid-cap fund. That adds growth potential.
– Rs. 10K goes into a large & mid-cap fund. That gives balance.
– Rs. 10K in a balanced advantage fund. That adds downside cushion.
– Rs. 16K split between two small-cap funds. That gives aggression.
– Total SIPs = Rs. 81K/month.
– You are spread across five categories. That is well-thought.
– But some refinements will help.
? Portfolio Evaluation
– You are slightly over-invested in small-caps.
– Rs. 16K/month is nearly 20% of your SIPs.
– Small-caps are very volatile.
– Limit this to 10-15% of total SIPs.
– Rs. 8K/month in small-caps is enough.
– Shift excess to balanced or large-cap funds.
– Your large-cap allocation is low. That needs improvement.
– Your balanced advantage fund helps with stability.
– Mid-cap exposure is fine at Rs. 15K.
– Flexi-cap at Rs. 30K is solid. Continue it.
– Total equity SIP is well diversified but needs better allocation mix.
? ETF and Index Funds Clarification
– You have not mentioned index funds or ETFs.
– That is good.
– Index funds simply copy an index. They don’t beat the market.
– In India, active funds often perform better.
– Fund manager adds value through stock selection.
– Active funds manage downside risk too.
– Avoid index-based investing.
– Stay with actively managed mutual funds.
– Choose regular plans through a Certified Financial Planner.
? Direct vs Regular Plan Concern
– If you are using direct mutual funds, please reconsider.
– Direct plans give no guidance or monitoring.
– You must track fund changes, rebalancing and SIP review yourself.
– Without professional help, mistakes are easy.
– Regular funds via MFD with CFP support are better.
– You get portfolio review and strategy adjustment.
– That helps you achieve goals smoothly.
– Long-term benefits of advice are worth the slightly higher cost.
? EPF Investment Assessment
– You contribute Rs. 35K/month to EPF.
– That builds a strong debt base.
– EPF interest is tax-free and safe.
– Current balance is Rs. 15 lakh.
– Over 20 years, this will grow well.
– You can expect over Rs. 1.2 to 1.5 crore at retirement.
– Continue EPF contributions.
– It provides stable, low-risk retirement support.
? Bank Savings Analysis
– You have Rs. 20 lakh in bank.
– This is for emergency and short-term goals.
– Emergency reserve of Rs. 6 to 9 lakh is sufficient.
– Keep that in liquid or short-term debt funds.
– Rest Rs. 11 to 14 lakh can be invested for goals like foreign trip.
– Avoid idle money in savings account.
– Use low-duration mutual funds for better returns and easy access.
– Plan exact timeline for foreign travel.
– Invest accordingly based on goal horizon.
? Child Education Goal – Rs. 1 Crore in 10 Years
– Your child is 8 years old.
– In 10 years, higher education costs will peak.
– You must accumulate Rs. 1 crore.
– Assuming 10% return, invest around Rs. 45K/month for 10 years.
– Use flexi-cap and large & mid-cap funds for this goal.
– Add SIPs or reallocate from small-caps to this goal.
– Do not keep this goal mixed with retirement SIPs.
– Create a separate goal-based portfolio.
– Review every year to track progress.
? Retirement Goal – Rs. 8 Crore in 20 Years
– You are 39 now. Retirement is at 59.
– You target Rs. 8 crore corpus.
– With existing SIPs and EPF, this is achievable.
– You must invest at least Rs. 65K to 70K/month in equity for this.
– You are already investing Rs. 81K/month.
– That’s good.
– But you must stay consistent for 20 years.
– Keep monitoring equity and debt mix.
– Rebalance if large-cap or balanced funds underperform.
– Add more SIPs if income rises.
– Avoid stopping SIPs in market fall.
– Stay invested through all cycles.
? Insurance Portfolio Review
– You have family health insurance of Rs. 15 lakh.
– That is good. Check if it covers all treatments.
– Review inclusion of critical illness and maternity.
– Consider a top-up health policy if not done already.
– You have Rs. 4 crore term cover.
– That is excellent for your income and responsibilities.
– Ensure nominee is updated.
– Review term policy till age 60-65 only.
– Avoid insurance-cum-investment plans.
– They give poor returns and lock money unnecessarily.
? Emergency Planning and Risk Cover
– Emergency corpus is adequate.
– Avoid using it for non-emergency needs.
– Track medical inflation yearly.
– Review policy network hospitals and claims process.
– Make Will and update nominations across all accounts.
– Include spouse in all decisions and access to financial details.
? Future Strategy for Surplus Savings
– Your monthly surplus is Rs. 1.2 lakh.
– You already invest Rs. 81K/month in SIPs.
– You can use the remaining Rs. 39K/month smartly.
– Add Rs. 20K/month SIP for child education.
– Keep Rs. 10K/month for retirement corpus.
– Keep Rs. 5K/month for short-term goals.
– Use Rs. 4K/month to top up emergency funds till Rs. 9 lakh.
– Review SIP split every year. Adjust with inflation and salary rise.
? Suggested Allocation by Fund Type
– Large-cap + Balanced – 40% of total SIPs
– Mid-cap + Flexi-cap – 40%
– Small-cap – 10%
– Debt Funds for short-term – 10%
– This offers stability and growth with reduced volatility.
– Stick to this allocation for the next 10 years.
? Review Frequency and Action Plan
– Review portfolio once every 6 to 12 months.
– Remove underperforming funds if lagging for 3+ years.
– Don’t chase best performing funds every year.
– Stick to consistent performers across market cycles.
– Rebalance between debt and equity as per age and goals.
– Take help from a Certified Financial Planner.
? Finally
– Your financial foundation is strong and promising.
– SIPs are high. Allocation needs small correction.
– Reduce small-cap exposure. Increase large-cap and goal-specific SIPs.
– Bank funds should not lie idle. Invest smartly for short-term needs.
– EPF and term cover are well placed.
– Keep emergency funds ready and accessible.
– Use regular funds through a Certified Financial Planner.
– Avoid direct plans unless you can track every detail.
– With these steps, your Rs. 1 crore education goal and Rs. 8 crore retirement goal are realistic.
– You are well on track. Stay disciplined and invest consistently.
– Don’t stop SIPs. Don’t follow market noise.
– Follow your plan. Review regularly.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Your savings rate is strong. Investments are diversified. Insurance coverage is also thoughtful.
Let’s assess your portfolio and guide you with 360-degree suggestions.
? Income, Expenses and Surplus
– Monthly income is Rs. 2.4 lakh.
– Monthly expense is Rs. 1.2 lakh.
– You save the full remaining Rs. 1.2 lakh.
– Savings ratio is 50%. That is excellent.
– You also contribute Rs. 35K to EPF from employer and your share.
– Total monthly investments are even higher than Rs. 1.2 lakh.
– You are investing with discipline.
– That builds long-term financial stability.
? SIP Portfolio Overview
– You invest Rs. 30K in a flexi-cap fund. That gives diversification.
– Rs. 15K goes to a mid-cap fund. That adds growth potential.
– Rs. 10K goes into a large & mid-cap fund. That gives balance.
– Rs. 10K in a balanced advantage fund. That adds downside cushion.
– Rs. 16K split between two small-cap funds. That gives aggression.
– Total SIPs = Rs. 81K/month.
– You are spread across five categories. That is well-thought.
– But some refinements will help.
? Portfolio Evaluation
– You are slightly over-invested in small-caps.
– Rs. 16K/month is nearly 20% of your SIPs.
– Small-caps are very volatile.
– Limit this to 10-15% of total SIPs.
– Rs. 8K/month in small-caps is enough.
– Shift excess to balanced or large-cap funds.
– Your large-cap allocation is low. That needs improvement.
– Your balanced advantage fund helps with stability.
– Mid-cap exposure is fine at Rs. 15K.
– Flexi-cap at Rs. 30K is solid. Continue it.
– Total equity SIP is well diversified but needs better allocation mix.
? ETF and Index Funds Clarification
– You have not mentioned index funds or ETFs.
– That is good.
– Index funds simply copy an index. They don’t beat the market.
– In India, active funds often perform better.
– Fund manager adds value through stock selection.
– Active funds manage downside risk too.
– Avoid index-based investing.
– Stay with actively managed mutual funds.
– Choose regular plans through a Certified Financial Planner.
? Direct vs Regular Plan Concern
– If you are using direct mutual funds, please reconsider.
– Direct plans give no guidance or monitoring.
– You must track fund changes, rebalancing and SIP review yourself.
– Without professional help, mistakes are easy.
– Regular funds via MFD with CFP support are better.
– You get portfolio review and strategy adjustment.
– That helps you achieve goals smoothly.
– Long-term benefits of advice are worth the slightly higher cost.
? EPF Investment Assessment
– You contribute Rs. 35K/month to EPF.
– That builds a strong debt base.
– EPF interest is tax-free and safe.
– Current balance is Rs. 15 lakh.
– Over 20 years, this will grow well.
– You can expect over Rs. 1.2 to 1.5 crore at retirement.
– Continue EPF contributions.
– It provides stable, low-risk retirement support.
? Bank Savings Analysis
– You have Rs. 20 lakh in bank.
– This is for emergency and short-term goals.
– Emergency reserve of Rs. 6 to 9 lakh is sufficient.
– Keep that in liquid or short-term debt funds.
– Rest Rs. 11 to 14 lakh can be invested for goals like foreign trip.
– Avoid idle money in savings account.
– Use low-duration mutual funds for better returns and easy access.
– Plan exact timeline for foreign travel.
– Invest accordingly based on goal horizon.
? Child Education Goal – Rs. 1 Crore in 10 Years
– Your child is 8 years old.
– In 10 years, higher education costs will peak.
– You must accumulate Rs. 1 crore.
– Assuming 10% return, invest around Rs. 45K/month for 10 years.
– Use flexi-cap and large & mid-cap funds for this goal.
– Add SIPs or reallocate from small-caps to this goal.
– Do not keep this goal mixed with retirement SIPs.
– Create a separate goal-based portfolio.
– Review every year to track progress.
? Retirement Goal – Rs. 8 Crore in 20 Years
– You are 39 now. Retirement is at 59.
– You target Rs. 8 crore corpus.
– With existing SIPs and EPF, this is achievable.
– You must invest at least Rs. 65K to 70K/month in equity for this.
– You are already investing Rs. 81K/month.
– That’s good.
– But you must stay consistent for 20 years.
– Keep monitoring equity and debt mix.
– Rebalance if large-cap or balanced funds underperform.
– Add more SIPs if income rises.
– Avoid stopping SIPs in market fall.
– Stay invested through all cycles.
? Insurance Portfolio Review
– You have family health insurance of Rs. 15 lakh.
– That is good. Check if it covers all treatments.
– Review inclusion of critical illness and maternity.
– Consider a top-up health policy if not done already.
– You have Rs. 4 crore term cover.
– That is excellent for your income and responsibilities.
– Ensure nominee is updated.
– Review term policy till age 60-65 only.
– Avoid insurance-cum-investment plans.
– They give poor returns and lock money unnecessarily.
? Emergency Planning and Risk Cover
– Emergency corpus is adequate.
– Avoid using it for non-emergency needs.
– Track medical inflation yearly.
– Review policy network hospitals and claims process.
– Make Will and update nominations across all accounts.
– Include spouse in all decisions and access to financial details.
? Future Strategy for Surplus Savings
– Your monthly surplus is Rs. 1.2 lakh.
– You already invest Rs. 81K/month in SIPs.
– You can use the remaining Rs. 39K/month smartly.
– Add Rs. 20K/month SIP for child education.
– Keep Rs. 10K/month for retirement corpus.
– Keep Rs. 5K/month for short-term goals.
– Use Rs. 4K/month to top up emergency funds till Rs. 9 lakh.
– Review SIP split every year. Adjust with inflation and salary rise.
? Suggested Allocation by Fund Type
– Large-cap + Balanced – 40% of total SIPs
– Mid-cap + Flexi-cap – 40%
– Small-cap – 10%
– Debt Funds for short-term – 10%
– This offers stability and growth with reduced volatility.
– Stick to this allocation for the next 10 years.
? Review Frequency and Action Plan
– Review portfolio once every 6 to 12 months.
– Remove underperforming funds if lagging for 3+ years.
– Don’t chase best performing funds every year.
– Stick to consistent performers across market cycles.
– Rebalance between debt and equity as per age and goals.
– Take help from a Certified Financial Planner.
? Finally
– Your financial foundation is strong and promising.
– SIPs are high. Allocation needs small correction.
– Reduce small-cap exposure. Increase large-cap and goal-specific SIPs.
– Bank funds should not lie idle. Invest smartly for short-term needs.
– EPF and term cover are well placed.
– Keep emergency funds ready and accessible.
– Use regular funds through a Certified Financial Planner.
– Avoid direct plans unless you can track every detail.
– With these steps, your Rs. 1 crore education goal and Rs. 8 crore retirement goal are realistic.
– You are well on track. Stay disciplined and invest consistently.
– Don’t stop SIPs. Don’t follow market noise.
– Follow your plan. Review regularly.
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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