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Ramalingam Kalirajan |9758 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 05, 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

Asked by Anonymous - Jun 02, 2025

My salary is 27 k per month i have 4 rds of rs 935 1000 500 for 2030 yr maturity and sip of 1000 and 1000 in shares my age is 29 how to build more corpus in future??

Ans: You have taken important first steps already. You’re saving, investing and planning. That is good. Let us now build further.

Understand Your Current Investment Pattern

Your monthly income is Rs. 27,000. That is a modest but steady base.

You are saving in four RDs. Total RD value is approx. Rs. 2,435 monthly.

You have Rs. 1,000 in SIPs and Rs. 1,000 in direct shares.

Total savings per month is about Rs. 4,435. That is 16% of income. Good start.

Your investments are split between fixed and market-based instruments.

Set Clear Financial Goals

You are young. At 29, time is your biggest advantage.

Start listing your goals. Example: buying house, car, child’s education, retirement.

Each goal must have a timeline and estimated amount.

Only then, your investments can be planned for those goals.

Avoid Over-Reliance on RDs

RD is safe but return is low. It may not beat inflation.

RDs are useful only for short-term goals or emergency needs.

For long-term goals, inflation-adjusted growth is needed.

Please don’t increase RD contribution in future.

RDs should not be your main wealth builder.

Improve Mutual Fund Strategy

SIPs are good. You are doing right by investing Rs. 1,000 monthly.

Increase SIP amount whenever salary increases.

Choose funds that are actively managed. Avoid index funds.

Index funds give average return. Actively managed funds try to beat market.

That gives you better chance to grow your wealth over time.

Start investing through a Certified Financial Planner via MFD route.

Avoid Investing in Direct Stocks

You invest Rs. 1,000 in stocks directly. That is risky at this stage.

Stock picking needs time, skill and patience.

It is better to exit direct stocks slowly.

Put that amount into diversified mutual funds.

Build an Emergency Fund First

Emergency fund gives safety during unexpected events.

Start saving at least Rs. 500 monthly in a separate savings account.

Slowly build 3 to 6 months of expenses.

This avoids loans or credit card use in emergencies.

Focus on SIP and Goal-based Investing

SIP is simple. It builds wealth over long term.

Allocate money as per each goal.

Short-term goal: Use short-term debt mutual fund.

Medium-term goal: Use hybrid or balanced advantage fund.

Long-term goal: Use equity mutual fund through SIP.

Keep each goal and investment separate.

Use Regular Plan over Direct Plan

You may hear about direct mutual funds.

Direct plans skip distributor. But you also miss expert support.

Direct plans suit experienced investors only.

In regular plan, MFD with CFP gives advice and ongoing review.

Regular plans ensure discipline and correct strategy.

That makes a big difference in long-term returns.

Avoid Over-spending and Lifestyle Inflation

Try to limit lifestyle expenses.

Budget your monthly costs strictly.

Avoid buying unnecessary things on EMI.

If you get any bonus or gift money, invest most of it.

Don't keep it idle in Paytm or wallet apps.

Never Depend on One Income Source Forever

You can consider learning extra skills or freelance work.

Even Rs. 2,000 to 3,000 extra per month makes big difference.

That extra income can be fully invested.

Over 10 years, this can double your corpus.

Keep Reviewing Investments Annually

Every year check: goals, returns, savings rate and expenses.

Increase SIP by 10% every year. That is very important.

Remove non-performing RDs or funds.

If possible, add a small health insurance policy.

Financial health and medical health are equally important.

Avoid Insurance-Linked Investment Products

ULIPs or LIC plans give low return and poor flexibility.

If you are holding such policies, consider surrendering.

Reinvest the money in mutual funds.

Keep insurance and investment separate always.

Future Action Plan for You

Stop adding new RDs. Let current RDs complete till 2030.

Slowly reduce direct stock investing.

Increase SIP amount to Rs. 2,000 per month from next increment.

Start emergency savings of Rs. 500/month.

Every year, increase SIP by Rs. 500 minimum.

Track your total net worth and goals every 6 months.

Finally

You have discipline and consistency. That is rare and powerful.

Time is in your favour. Use it fully.

Don’t chase quick money or risky schemes.

Stay regular. Stay simple. Stay long term.

That builds real wealth.

Let each rupee you earn work harder for you.

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.