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Ramalingam Kalirajan |11200 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 07, 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 - Apr 06, 2026Hindi

Me and My together earn jointly 1.5 - 17L per month in Bengaluru, our rent is apprx 30k and bike emi is 12.3k, parents cost is 20k plus our lifestyle cost is 15-20k now the rest is 40-60k that is surplus to invest. Please suggest

Ans: You are doing very well as a couple. A joint income of about Rs 1.5–1.7 lakh per month with controlled expenses and a clear surplus of Rs 40,000–60,000 shows strong financial discipline at an early stage. This gives you a powerful opportunity to build long-term wealth steadily and safely.

Here is a structured approach to use your surplus wisely.

» First strengthen your emergency safety fund

Before aggressive investing, build a safety cushion.

– Keep 6 months of total household expenses in savings + liquid mutual fund
– Your approximate monthly expense is around Rs 80,000–95,000
– So target emergency fund of about Rs 5–6 lakh
– Build this within 6–10 months using part of your surplus

This protects you from job change risk, health needs, or unexpected family situations.

» Continue protection planning properly

Protection is the base of financial planning.

– Take adequate term insurance for both spouses
– Minimum cover should be about 15–20 times annual income
– Maintain health insurance even if employer provides cover
– Add parents health insurance top-up if required

Protection first, investment next.

» Plan your surplus investment structure

Your surplus of Rs 40,000–60,000 monthly can be divided smartly.

Suggested allocation approach:

– 40% into flexi-cap mutual funds
– 25% into large-cap mutual funds
– 20% into mid-cap mutual funds
– 15% into multi-asset allocation funds

This mix gives stability + growth + diversification.

Actively managed funds are suitable here because they help manage market volatility better through professional allocation decisions.

» Use SIP route for disciplined growth

Monthly SIP investing helps create long-term wealth smoothly.

Example structure idea:

– Rs 20,000 into growth-oriented diversified equity funds
– Rs 10,000 into balanced allocation funds
– Rs 10,000 into large-cap stability funds
– Extra surplus months can go into mid-cap opportunities

Increase SIP amount every year when salary increases.

» Build short-term goal buckets separately

Not all money should go into long-term equity funds.

Create separate savings buckets for:

– travel plans
– vehicle upgrade
– house down payment (future)
– family responsibilities

Use short-duration debt mutual funds or recurring deposits for these.

This prevents disturbing long-term investments.

» Plan tax-efficient investing early

Start tax-saving investments every year instead of last-minute decisions.

Use:

– retirement-oriented equity funds
– provident fund contributions
– long-term diversified equity SIPs

Early planning reduces stress in March month.

» Prepare retirement wealth from the beginning

Even though retirement looks far away now, early investing creates powerful results.

Start retirement SIP separately:

– dedicate at least Rs 10,000–15,000 monthly
– increase yearly with salary growth
– keep this untouched

This single habit creates financial independence faster.

» Manage liabilities carefully

Your bike EMI is manageable.

Avoid adding:

– personal loans
– credit card EMI purchases
– lifestyle EMIs

Low debt improves investment capacity strongly over time.

» Build future milestone planning together as a couple

Discuss and define jointly:

– child education planning timeline
– home purchase timeline
– parents support expectations
– career upgrade plans

Joint planning improves clarity and confidence in investment decisions.

» Finally

Your biggest strength is strong income stability and controlled spending. If you invest Rs 40,000–60,000 monthly consistently and increase yearly, you can create a very strong financial foundation within 8–12 years.

Focus on protection first, emergency fund next, then disciplined SIP investing across diversified actively managed funds. This approach supports both stability and wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/

Asked on - Apr 10, 2026 | Answered on Apr 10, 2026

Thank you very much Mr. Ramalingam. I will definitely plan something in these lines!

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.linkedin.com/in/ramalingamcfp/

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