For wedding expenses of around Rs.25 lacs, which amount should be used ? (1) mutual fund saving is Rs. 30 lacs , out of which MFs of 7-8 lacs are not performing well. (2) Have FDRs of approx Rs.10 lacs and (3) have liquidity fund saving in savings bank account of approx. 5 lacs.

Ans: Hello, assuming your wedding is in 2 years and your expenses will be done completely by you , you have to be a little careful when you invest money in equities with a 2 year point of view as equity can be super volatile.
Since the wedding is a compulsary expense, you can bifurcate your investments into 2 parts - 75% in debt or debt hybrid funds and 25% in equity funds like your mid or small cap

Ans: It's great to see your enthusiasm for starting your investment journey at such a young age. Since you're new to investing, it's essential to prioritize understanding your risk tolerance and investment goals.

For your MF investment of Rs. 10,000 per month, you can consider starting with a balanced mutual fund or a diversified equity fund. These types of funds offer a mix of equity and debt instruments, providing a good balance between potential returns and risk. Look for funds with a track record of consistent performance and a low expense ratio.

Before investing, take some time to research and learn about different MF options, consider seeking advice from a Certified Financial Planner, or use online resources and investment platforms that offer guidance for beginners.

Remember to stay disciplined with your investments and regularly review your portfolio to ensure it aligns with your financial goals and risk tolerance. As you gain more experience and confidence, you can explore diversifying your investment portfolio further.

Ans: Congratulations on planning ahead for your daughter's wedding! It's heartening to see your dedication to ensuring her special day is memorable and stress-free. Let's discuss the right savings approach for this important milestone:

• Starting early is key to building a substantial wedding fund, and you've already taken the first step by initiating savings.
• Consider setting a specific target amount for your daughter's wedding expenses, taking into account factors like venue, catering, decorations, and more.
• Assess your current financial situation, including income, expenses, and existing savings, to determine a realistic savings goal.

• Given your age and the relatively short time frame of three years, it's essential to prioritize stable and low-risk investments.
• Explore options like fixed deposits, recurring deposits, and savings accounts for your wedding fund savings.
• Opt for instruments with competitive interest rates and minimal risk to safeguard your capital while earning steady returns.

• Consider diversifying your savings across different instruments to mitigate risk and maximize returns.
• Regularly review your savings plan and make adjustments as needed to stay on track towards your goal.
• Consulting with a Certified Financial Planner can provide personalized advice and guidance tailored to your specific needs and circumstances.

• Remember, your daughter's wedding is a joyous occasion, and your efforts to save for it will make it even more special.
• Stay focused on your goal, and keep up the good work with your savings plan.
• Your dedication and foresight will ensure your daughter's wedding is a beautiful and memorable celebration.

By following these steps and staying disciplined with your savings plan, you'll be well-prepared to finance your daughter's wedding and create cherished memories for your family.

Ans: – You have already built good wealth.
– Rs 60 lakh in mutual funds shows strong discipline.
– Rs 20 lakh in bank savings gives you liquidity.
– Rs 20 lakh in PF is an excellent safety cushion.
– SIP of Rs 60,000 reflects your commitment.
– Insurance coverage is also at a healthy level.
– Very few maintain such balance at 50 years.
– You deserve appreciation for consistent efforts.

» Understanding the Two Major Goals
– You want Rs 50 lakh for your daughter’s wedding.
– You also want Rs 4 crore for retirement.
– Both goals are large but achievable.
– The wedding is a short-term need.
– Retirement is a long-term need.
– Each goal needs a separate plan.
– Both require different investment approaches.

» Planning for Daughter’s Wedding
– The wedding is a short horizon goal.
– You cannot take high risk here.
– The capital must be protected.
– Use safer mutual fund categories.
– Stick to options with lower volatility.
– Ensure the money grows but stays safe.
– Avoid equity-based products for this goal.
– Keep liquidity in mind for the final year.

» Planning for Retirement Corpus
– Retirement needs long horizon focus.
– Rs 4 crore is a large number but realistic.
– At age 50, you still have 10 years to 60.
– Plus, retirement can continue for 25 years.
– This means long-term investing is essential.
– Mutual funds can play the main role.
– Equity funds will create growth for this.
– Debt allocation can control volatility.
– A proper asset mix is required.

» Evaluating Current Assets for Goal Allocation
– Rs 20 lakh in PF is retirement linked.
– That money can remain untouched till retirement.
– Rs 20 lakh in bank savings can partly fund wedding.
– Rs 60 lakh in mutual funds can be split.
– Part can be moved to safer funds for wedding.
– Remaining part can continue for retirement.
– This division ensures clarity for both goals.

» Role of Mutual Funds for Your Case
– Mutual funds offer growth with flexibility.
– For short-term, debt-oriented funds suit well.
– For long-term, equity-oriented funds are better.
– Actively managed funds are more useful than index funds.
– Index funds cannot react in falling markets.
– Actively managed funds can protect downside better.
– They also give higher chance of outperformance.
– A certified financial planner can guide in fund selection.

» Regular Funds vs Direct Funds
– Direct funds look cheaper but have hidden issues.
– They need constant tracking by investors.
– Wrong selection can harm long-term wealth.
– Many investors fail to review properly.
– Regular funds through a certified planner give value.
– You get expert monitoring and timely rebalancing.
– A planner also aligns funds with your life goals.
– So, regular funds bring more peace and growth.

» Assessing Your SIP of Rs 60,000
– Your SIP shows great discipline.
– Rs 60,000 every month is not small.
– Over 10 years, this grows meaningfully.
– Still, check if this is enough for Rs 4 crore.
– With active management, chances improve.
– If income allows, small increase in SIP is wise.
– Even Rs 10,000 more can add big difference.
– But continue only what feels sustainable.

» Risk Management and Insurance
– You already have Rs 2 crore life cover.
– That is adequate for family safety.
– Rs 15 lakh health cover is also good.
– But check if family members also covered.
– Rising medical costs can strain retirement.
– A super top-up plan may help.
– Insurance should remain till dependents are safe.
– Avoid mixing insurance with investment.

» Tax Efficiency in Investments
– Mutual funds bring better tax efficiency than FDs.
– New rules affect taxation of gains.
– For equity funds: LTCG above Rs 1.25 lakh taxed at 12.5%.
– STCG is taxed at 20%.
– For debt funds: gains taxed as per income slab.
– A planner helps with tax-aware withdrawals.
– Proper withdrawal strategy saves tax burden.
– Always plan exit keeping tax in mind.

» Step-by-Step Roadmap for Wedding Goal
– Keep Rs 20 lakh from savings for base funding.
– Allocate 20–25 lakh from mutual funds to safer debt funds.
– This ensures Rs 50 lakh is ready in time.
– Keep final year allocation in liquid type.
– Do not leave wedding goal exposed to equity volatility.
– With this, you have clarity and peace.

» Step-by-Step Roadmap for Retirement Goal
– Keep PF fully for retirement.
– Allocate remaining mutual fund balance towards retirement corpus.
– Continue and even increase SIP for retirement.
– Keep equity-oriented allocation for growth.
– Maintain 25–30% debt allocation for stability.
– Review every year with a certified planner.
– Rebalance between equity and debt when required.
– As you near retirement, shift part to safer funds.

» Lifestyle and Spending Considerations
– Retirement corpus depends on spending habits.
– Track current expenses carefully.
– Estimate future lifestyle realistically.
– Control unnecessary lifestyle inflation.
– Save bonuses or extra income directly into retirement plan.
– Wedding expense is fixed but retirement expense keeps growing.
– Health costs may rise sharply.
– Planning lifestyle helps keep corpus safe.

» The Role of Discipline and Behaviour
– Investment return depends also on behaviour.
– Avoid panic during market falls.
– Stay invested in equity for long-term goal.
– Do not chase quick returns.
– Stick to asset allocation guided by planner.
– Review yearly, not monthly.
– Discipline is more powerful than timing.
– Behaviour ensures success more than products.

» Importance of Goal-Based Investing
– Linking funds to goals reduces confusion.
– Wedding fund stays protected from market risk.
– Retirement fund stays focused on growth.
– Each goal gets its own plan.
– No mixing of short and long-term needs.
– This separation is key for peace.
– A certified financial planner ensures this alignment.

» Monitoring and Rebalancing Strategy
– Markets change every year.
– Asset allocation drifts without review.
– Rebalancing restores balance.
– Shift some equity to debt if overweight.
– Shift some debt to equity if underweight.
– This keeps risk under control.
– Regular review avoids surprises.
– Certified financial planner adds discipline here.

» Finally
– You have built strong foundation already.
– Both wedding and retirement goals look achievable.
– Just need smart allocation of current assets.
– Increase SIP a bit if possible.
– Protect wedding corpus in safer funds.
– Grow retirement corpus with equity focus.
– Keep reviewing with certified financial planner.
– This way you get 360-degree financial peace.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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