Dear Sir, I am writing to seek your financial advice on how can I invest better. I am 35 year old working in an MNC with 3.5L salary per month. We have around 3.25cr in real estate. Have our own house in our hometown which would be of 1.25cr worth.So total assets value is around aprrox 4.5cr. 1.5cr in FD with 6.75% interest rate in the names of non earning family members to save tax. 1.4cr in bonds with 10% interest rate, also in the names of non earning family members to save tax. 65L in company foreign RSU, 4.75L in NPS with 18K per month flowing in. 27L in PF with 30k per month flowing in. 2.5L in mutual funds with 20K SIP. I have sold the shares and MF which I previously hold as there is no much growth in last 2 years. 14L in savings accounts. Around 20 to 25L worth gold. I don't have any liabilities or loans. I have 1.5cr term insurance from TATA AIA. I am relying on 25L company health insurance. Our monthly expense is about 1.5L. I would need your advice on how to invest better. I am also thinking of financial Freedom as the market is going through layoffs. I am not person with high risk taking appetite preferring mental peace over risky investments. Want to see if there is a scope to optimize on investments despite low risking taking appetite. Also please suggest any other instruments I should go for like guaranteed returns schemes etc. Thank you very much sir!

Ans: You have built a very strong financial base at age 35.
Your income, savings, assets and zero debt give you major flexibility.

Your main issue is not lack of wealth.
The bigger issue is asset allocation and inefficient deployment of surplus money.

You also have a high concentration in fixed income, property and employer RSUs.
This can provide safety, but may limit long-term wealth creation.

» Your Current Position

– Real estate: Around Rs.3.25 crore
– Hometown house: Around Rs.1.25 crore
– FD: Rs.1.50 crore
– Bonds: Rs.1.40 crore
– Company RSUs: Rs.65 lakh
– NPS: Rs.4.75 lakh
– PF: Rs.27 lakh
– Mutual funds: Rs.2.50 lakh
– Savings accounts: Rs.14 lakh
– Gold: Around Rs.20–25 lakh
– No loans or other liabilities

Your financial assets alone are already substantial.

Your monthly salary is Rs.3.50 lakh.
Your expenses are around Rs.1.50 lakh.
This creates a healthy monthly surplus.

However, only Rs.68,000 currently goes towards NPS, PF and mutual funds.
The remaining surplus needs a clear investment purpose.

» Financial Freedom Is Realistic

Your current expense level is relatively low compared with your income.

You are also only 35 years old.
Therefore, you have a long investment period ahead.

However, financial freedom should not depend only on property.
Your financial assets should gradually become your main freedom corpus.

The goal should be:

– Protect your lifestyle.
– Build a large financial corpus.
– Reduce dependence on salary.
– Maintain enough liquidity for emergencies.
– Keep market risk within your comfort level.

You do not need aggressive investing to achieve this.

» One Important Concern

You mentioned selling shares and mutual funds because they did not grow recently.

I would strongly reconsider this approach.

Equity investments can remain flat for two or three years.
That does not mean the investment strategy has failed.

Selling after a disappointing period can hurt long-term wealth creation.

Your 35-year age gives you enough time for equity exposure.
But the exposure should be controlled and diversified.

You need a moderate-risk equity allocation, not an aggressive one.

» Fixed Income Allocation

You already have around Rs.2.90 crore in FD and bonds.

This is a very large fixed-income allocation.

The positive side is excellent stability and mental peace.

The concern is that inflation can slowly reduce purchasing power.

I would not increase fixed-income investments aggressively from here.

Existing FDs can continue based on maturity and taxation.
New surplus should gradually be diversified.

High-quality bonds, government securities and suitable fixed-income products can remain part of the portfolio.

Avoid chasing 10% returns merely because they look attractive.

Higher bond returns usually come with higher credit or liquidity risks.

» The 65 Lakh RSU Holding

This needs special attention.

Your RSUs are linked to your employer.
Your salary is also linked to the same employer.

Therefore, both your income and investment carry similar company risk.

I would gradually reduce this concentration after considering:

– Vesting schedule
– Tax impact
– Company outlook
– Your overall asset allocation
– Your risk comfort

A disciplined annual reduction can provide much better diversification.

Do not wait for the perfect share price.

» Mutual Fund Allocation

Your current mutual fund investment is only Rs.2.50 lakh.

For someone aged 35, this is quite low.

You do not need to suddenly move a large amount into equity.

Instead, increase equity exposure gradually.

A diversified portfolio can include:

– Large and flexible diversified equity exposure
– Multi-cap or diversified active equity exposure
– Some mid-cap exposure
– A limited small-cap allocation, if comfortable
– Balanced or hybrid exposure for smoother returns

Since you prefer mental peace, avoid excessive mid-cap and small-cap exposure.

Actively managed funds can also help in this situation.
Good fund management can adjust stocks across different market conditions.

» Your Monthly Surplus

This is probably your biggest opportunity.

Your income is Rs.3.50 lakh monthly.
Your expenses are around Rs.1.50 lakh.

Therefore, a significant amount remains available every month.

The unused surplus should not simply accumulate in savings accounts.

You can gradually direct it towards:

– Diversified equity mutual funds
– Hybrid or balanced investments
– High-quality fixed-income investments
– Retirement-oriented investments
– Emergency reserves

A systematic investment approach can reduce the stress of market timing.

» Emergency Fund

Your Rs.14 lakh savings balance is already useful.

Keep around 9–12 months of essential expenses readily available.

You have a high income but also work in an MNC.

Your concern about layoffs is therefore understandable.

I would keep a strong emergency reserve.

This reserve should not be invested in volatile assets.

» Health Insurance

Your Rs.25 lakh company health cover is useful.

But I would not depend entirely on employer insurance.

If you change jobs or face employment uncertainty, the cover may disappear.

Consider having a separate personal family health insurance policy.

A suitable super top-up can also be evaluated.

This can improve protection without creating a very high premium burden.

» Life Insurance

Your Rs.1.50 crore term insurance is a good protection step.

However, the adequacy should be reviewed against:

– Current income
– Future family requirements
– Children-related goals
– Existing financial assets
– Future liabilities

Do not mix insurance and investment unnecessarily.

Keep insurance primarily for protection.

» Gold Allocation

Your gold holding of Rs.20–25 lakh is reasonable.

There is no need to increase it aggressively.

Gold can provide diversification during uncertain periods.

But it should remain a supporting asset.

Your main wealth creation should come from financial assets.

» Real Estate

You already have substantial exposure to real estate.

I would not add another property purely for investment.

Your existing properties already provide significant asset stability.

Future surplus should preferably improve your financial asset diversification.

This will also make financial freedom easier to manage.

» About Guaranteed Return Products

You can consider guaranteed or fixed-return products for safety.

But I would not make them the core strategy.

FDs, government-backed instruments and high-quality fixed-income options can serve this purpose.

Be careful with products promising unusually high guaranteed returns.

Always check:

– Issuer strength
– Lock-in period
– Exit conditions
– Tax treatment
– Actual guaranteed amount
– Inflation impact

Do not buy an investment product only because the return is guaranteed.

» Tax Planning Point

One important point needs checking.

Holding FDs and bonds in the names of non-earning family members does not automatically eliminate tax.

Clubing provisions can apply in certain family situations.

The source of money and relationship with the account holder matter.

So this structure should be reviewed carefully before adding more investments.

Tax saving should always remain legally compliant.

» A Better Asset Strategy

Your portfolio does not need a complete overhaul.

It needs gradual rebalancing.

Over the next few years, I would aim for:

– Maintain strong emergency liquidity.
– Keep substantial high-quality fixed income.
– Gradually increase diversified equity exposure.
– Reduce employer RSU concentration.
– Avoid adding more investment property.
– Keep gold at a controlled level.
– Increase monthly investments substantially.
– Review the portfolio once or twice every year.

This approach should suit your lower risk appetite better.

» Final Insights

You are in a very good financial position at 35.

Your biggest advantage is your high income and large existing asset base.

Your biggest opportunity is better deployment of future surplus.

Your biggest risk is excessive concentration in property, fixed income and employer shares.

You do not need risky investments to achieve financial freedom.

A disciplined moderate-risk portfolio can potentially give you both growth and peace of mind.

Your next step should be a detailed goal-based allocation.
That should cover financial freedom, child education, retirement and liquidity needs.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

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