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Ramalingam Kalirajan |10870 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Nov 10, 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 - Nov 09, 2025Hindi

Hi , I am working in IT (tcs) with 40k salary and 1 year experience. I saved 2 lakhs in my bank and i am planning to go to masters in sep 2026( Due to on going situation I may or may not go for masters in this situation). So i want to multiple my money by doing something instead of just keeping them in bank. Can someone give me suggestions on how can i multiply my money?

Ans: You have done a great job at this young stage. You already work in IT. You earn Rs.40000 salary. You have only one year of experience. Yet, you saved Rs.2 lakhs. This shows great discipline. Many people fail to save even after many years of work. You already stand ahead. You also think about your future. You think about higher studies. You think about money growth. This shows maturity. You must feel proud of this start.

Your question is clear. You want to multiply your money. You do not want to leave the savings idle in the bank. You also have a possible plan for masters in 2026. But you are not fully sure. So your money plan needs flexibility. It must support you even if plans change. It must give safety and also growth. I will explain this from all angles in a simple way. My sentences will stay short. My tone will stay simple and clear. But I will also give deep insights as a Certified Financial Planner.

Below is a long, complete, 360 degree guidance for your situation.

» Appreciation for Your Early Discipline
– You saved Rs.2 lakhs at age 21 or 22.
– This is very strong discipline.
– Many people do not save even Rs.50000 in first years.
– Your mindset is rare.
– You think ahead in life.
– You value money.
– You think about growth.
– This gives you a big head start.
– You should keep this habit always.
– Early habits decide future success.

» Your Current Life Stage
– You are still early in your career.
– Your income will grow in coming years.
– Your responsibilities are still low.
– You have time on your side.
– Time is your biggest power.
– Money grows faster when started early.
– Compounding works best at your age.
– Small steps today create big results later.
– But you must manage risk with care.

» Your Masters Plan and Uncertainty
– You plan to go for masters in 2026.
– But you are not sure yet.
– This means your money plan must stay flexible.
– You must not lock money for long.
– You must not take very high risk.
– You must not choose long lock-in products.
– You need easy exit when required.
– You need reasonable growth.
– You need capital safety also.
– The plan should allow both situations.
– It should work even if you go abroad.
– It should also work if you stay here.

» Why Bank Savings Alone Is Not Enough
– Bank savings give very low returns.
– Interest may not beat inflation.
– Idle money loses value over time.
– For two years, bank interest will not help much.
– Your savings will stay almost flat.
– So you need better tools.
– But better tools must not take extreme risk.
– Balanced choices suit your stage.

» Avoid Taking Very High Risk
– Many youngsters chase fast money.
– They jump into crypto.
– They jump into trading.
– They jump into F&O.
– These give big losses at your stage.
– Your savings are precious now.
– You must protect every rupee.
– You must not try gambling products.
– You must focus on steady growth.
– You must keep money liquid.

» Why Mutual Funds Suit You
– Mutual funds give controlled risk.
– They give better returns than banks.
– They offer flexibility.
– You can withdraw anytime.
– They suit both short and long timelines.
– They can match your masters plan.
– They can match your job plan.
– They can match your future goals too.

» Use Regular Funds, Avoid Direct Funds
– Many youngsters buy direct funds.
– They think they reduce cost.
– But direct funds demand deep skills.
– You must choose schemes.
– You must track markets.
– You must rebalance at right time.
– You must manage emotions.
– These are not easy at early stage.
– Mistakes can cause losses.
– Regular funds through an MFD with CFP support help more.
– You get guidance.
– You get goal review.
– You get emotional protection.
– You avoid panic selling.
– You get stronger long-term outcomes.
– This support is more valuable than small cost savings.

» Why Index Funds Are Not Good for You
– Some people say index funds are simple.
– But index funds carry full market risk.
– They fall fully in market crashes.
– They offer no active control.
– There is no fund manager protection.
– For a beginner, this is risky.
– You need smoother movement.
– Actively managed funds give better support.
– They adjust exposure.
– They reduce downside.
– They suit young investors better.

» Your Best Investment Approach Now
– Your time horizon is two years.
– So you need moderate risk.
– You should avoid very volatile funds.
– You must avoid long lock-in options.
– You need simple and balanced choices.
– You must protect your capital.
– Your plan must support sudden need.

The most balanced approach for you is:

Part 1: Keep some money liquid
– Keep at least Rs.50000 in bank or liquid fund.
– This helps in emergencies.
– This keeps you stable.

Part 2: Invest the rest in suitable mutual funds
– Choose regular funds.
– Choose funds that suit 2 to 3 year goals.
– Choose funds that protect upside and downside.
– You can set up small SIP also.
– SIP builds habit.
– SIP grows long-term discipline.
– Even Rs.2000 SIP helps.
– It builds structure in your life.

» Avoid Fast Trading
– Do not trade stocks.
– Do not trade options.
– Do not jump into crypto.
– Do not chase stock tips.
– These destroy savings.
– Your capital is too precious.
– Protect stability.
– Build slow but steady.

» Think About Your Masters Funding
– If you go for masters in 2026, you need some corpus.
– Fees are high.
– Travel cost is high.
– Living cost is high.
– You may need loans.
– Your 2 lakhs can help initial payments.
– So keep your money safe.
– Do not expose it to very high risk.

» Think About Alternate Plan if You Don’t Go
– If you skip masters, the money can become your career booster.
– You can use it for courses.
– You can build your skill set.
– You can use it to shift roles.
– You can plan for future goals.
– You can invest more deeply.
– A small disciplined start now helps later.

» Building Wealth at a Young Age
– Your focus must be on growth.
– But growth must be steady.
– You should build patience.
– You should build emotional control.
– Wealth grows with time.
– Wealth grows with discipline.
– Wealth grows with focus.
– You have already started well.

» Combine Skill Growth and Money Growth
– Money grows faster when income grows.
– Income grows with skill.
– Skill matters more than investment return now.
– Use part of your savings for courses.
– Build certifications.
– Build job value.
– A Rs.2 lakh investment in skills can increase salary strongly.
– Higher salary allows higher SIP.
– Higher SIP builds long-term wealth.

» Build a Healthy Emergency Fund
– Emergency fund gives peace.
– It avoids stress during job change.
– It helps during course plans.
– It helps during health issues.
– You must have it before high risk steps.

» Build Simple Good Habits
– Use SIP.
– Save before spending.
– Review your expenses.
– Increase SIP each year.
– Avoid loans for lifestyle.
– Avoid credit card debt.
– These habits build wealth faster.

» Your Savings Can Grow in Right Way
– If you stay invested for 2 years, funds may grow.
– Market can move.
– But long view helps.
– You will learn discipline.
– You will learn patience.
– You will understand money better.

» Do Not Compare Yourself With Others
– Some people show big returns.
– They hide their losses.
– They chase risky tools.
– You avoid that.
– Slow and steady creates better results.

» Plan With a Certified Financial Planner
– A CFP can help track your goals.
– A CFP can help choose suitable funds.
– A CFP can help avoid risk errors.
– A CFP can help with emotional decisions.
– A CFP gives long-term structure.

» Tax View
– If you withdraw from equity funds within a year, STCG at 20 percent applies.
– If you withdraw after a year, LTCG above Rs.1.25 lakh is taxed at 12.5 percent.
– For debt funds, tax is based on your slab.
– You can plan your withdrawals smartly.
– Good planning reduces tax load.

» A 360 Degree Plan for You
– Save Rs.50000 as emergency buffer.
– Invest the rest in suitable regular funds.
– Build small monthly SIP.
– Increase SIP after each salary hike.
– Review your plan twice a year.
– Stay safe from high-risk products.
– Keep money accessible for masters.
– Revisit your plan when you get clarity in 2026.
– Keep long-term focus even if goals change.

» Finally
– You are off to a great start.
– You already have Rs.2 lakhs.
– You already show discipline.
– You already think long term.
– This mindset will take you far.
– With careful planning, your money can grow.
– With steady habits, your future will stay strong.
– You can multiply your savings safely.
– And you can support your masters plan if needed.
– Stay consistent.
– Stay patient.
– Keep improving your skills.
– Your financial future looks bright.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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

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