I am 37 from Ghaziabad. I am an HR professional.

I had liabilities due to some losses I faced during Covid that I had to pay in the next 3 years. I am currently looking to invest some amount to create my portfolio. As of now my only SIP is running which is 1k in Axis Blue Chipfund - Direct Growth from the past 11 months. 

I need to create wealth for my Daughter's education / Marriage / My Retirement approx 3-4 crores minimum.

Please suggest to me what investment I can do and how much amount I should Invest for now to create a good portfolio down the line 15 years I should not regret. Also please share the funds or invest plan names for long term with great benefits or returns and tax can also be saved in maturity amount.

Please let me know if any more information is required.

Ans: Hello Amandeep. I understand you have multiple goals for the next decade. If you want to build a corpus of 3-4 Cr, it's advisable to start investing in sips more and more. Say a monthly sum of approximately Rs 44,000 sips.

You can add on some funds annually to reach to sip investments to 44 k. Kindly find below suggested schemes that may accomplish your future goals.

• SBI Small Cap Fund
• Nippon India Growth Fund
• PGIM India Flexicap Fund
• Canara Robeco Emerging Equities Fund
• Mirae Asset Tax Saver Fund- contains lock in period 

Ans: You may consider a basket of below funds:

Uti Flexi Cap Fund-regular -growth

Axis Esg Equity Fund -Growth

Kotak Business Cycle Fund-growth

Samco Flexi Cap Fund - Growth

To create a corpus of 3.5 crs in 15 years the monthly investment that is required is Rs. 60000/- 

Ans: You and your wife earn a combined net salary of Rs 2.5 lakh per month. Your current savings are Rs 18 lakh in mutual funds, Rs 8 lakh in PPF, and Rs 2 lakh in NPS. Your monthly savings are Rs 75k in mutual funds, Rs 15k in PPF, and Rs 1 lakh yearly in NPS. Your monthly expenses average Rs 50k. You are planning to take an Rs 80 lakh loan for a flat and are also planning to have a baby. You aim to build a retirement corpus of Rs 8 crore in the next 15 years.

Portfolio Analysis and Recommendations
Current Investments
Mutual Funds: Rs 18 lakh
PPF: Rs 8 lakh
NPS: Rs 2 lakh
Monthly Savings
Mutual Funds: Rs 75,000
PPF: Rs 15,000
NPS: Rs 1,00,000 yearly
Loan Considerations
Taking an Rs 80 lakh loan will impact your monthly cash flow. Assuming a 10-year loan tenure, your EMI would be approximately Rs 1 lakh per month.

Revised Monthly Budget
Income: Rs 2.5 lakh
Loan EMI: Rs 1 lakh
Expenses: Rs 50k
Available for Savings: Rs 1 lakh
Building a 15-Year Plan
Adjusted Monthly Savings
Mutual Funds: Rs 60,000
PPF: Rs 10,000
NPS: Rs 1,00,000 yearly
Emergency Fund: Rs 5,000
Investing in Mutual Funds
Equity Diversification: Allocate your mutual funds across large-cap, mid-cap, and small-cap funds for better diversification.
SIP Approach: Continue with SIPs for disciplined investing and benefit from rupee cost averaging.
PPF and NPS
PPF: Continue your contributions for tax benefits and assured returns.
NPS: Contribute Rs 1 lakh annually to benefit from additional tax savings and long-term growth.
Child and Family Planning
Education Fund
Systematic Investment Plan (SIP): Start a dedicated SIP for your child's education. Aim for a mix of equity and balanced funds.
Health Insurance
Family Floater Policy: Upgrade to a family floater policy to cover your wife and future child. Ensure adequate coverage for all medical needs.
Retirement Corpus
Target Corpus: Rs 8 Crore
To achieve your target, you need a well-diversified portfolio:

Equity: Continue with diversified mutual funds. Allocate a portion to mid-cap and small-cap funds for higher returns.
Debt: PPF, NPS, and fixed deposits for stability.
Gold: Invest in gold bonds or digital gold for diversification.
Steps to Follow
Review and Rebalance: Review your portfolio quarterly. Rebalance to maintain the desired asset allocation.
Increase Investments: Gradually increase your SIP amount as your income grows.
Tax Planning: Utilize tax-saving instruments like PPF, NPS, and ELSS funds.
Emergency Fund
Build an Emergency Fund: Keep at least 6 months of expenses in a liquid fund. This will help you manage any unexpected expenses without disturbing your investments.
Final Insights
Achieving an Rs 8 crore retirement corpus in 15 years is feasible with disciplined saving and smart investing. Adjust your savings post-loan, diversify your investments, and focus on long-term growth. Regularly review and rebalance your portfolio to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You own a house and a property worth Rs 28 lakh. These are valuable assets. Your income is Rs 33,000 per month. You need to plan for your children’s education, daughter’s marriage, and retirement. Start step by step.

Build an Emergency Fund
Set aside 3–6 months of expenses for emergencies. Begin small with Rs 3,000–5,000 monthly savings. Use a bank savings account or liquid mutual fund. This fund provides security in tough times.

Secure Your Family with Term Insurance
Buy a term insurance policy for at least Rs 50 lakh. This protects your family financially in your absence. Premiums are affordable and provide peace of mind.

Health Insurance is Essential
Buy a family floater health insurance plan. Ensure coverage of at least Rs 10 lakh. This protects against medical expenses and reduces financial strain.

Create a Monthly Budget
Track your monthly expenses and income. Allocate a portion to savings and investments. Prioritise essential expenses over luxuries.

Plan for Children’s Education
Start investing for your children’s higher education. Open a recurring deposit or invest in a child-specific mutual fund plan. Begin with small contributions and increase them gradually.

Plan for Daughter’s Marriage
Allocate a portion of the Rs 28 lakh property for this goal. You can sell it in the future when needed. Start a small savings plan to support this goal as well.

Start Investing in Mutual Funds
Invest in mutual funds for long-term goals like retirement. Begin with Rs 2,000–3,000 per month. Choose diversified or balanced funds for steady growth.

Sell the Gifted Property Strategically
Keep the property for now unless urgent funds are required. Use its value as a backup for future needs like education or marriage.

Focus on Retirement Planning
You must plan for retirement as a priority. Start a Public Provident Fund (PPF) account for tax-free savings. Consider investing in mutual funds for long-term growth.

Benefits of Regular Funds and CFP Guidance
Investing through regular funds provides professional advice. Certified Financial Planners guide you with tailored strategies. They align your investments with your goals.

Avoid Direct and Index Funds
Direct funds lack professional guidance. Index funds only mirror the market and may underperform actively managed funds. Actively managed funds offer higher growth potential with expert management.

Monitor Tax Implications
Equity mutual funds’ LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%. Plan your withdrawals strategically to minimise taxes.

Teach Financial Discipline
Educate your children about savings and budgeting. Encourage them to value money and save wisely.

Finally
Focus on one goal at a time. Build an emergency fund first. Secure your family with insurance. Start investing small amounts for long-term goals. Seek guidance from a Certified Financial Planner for better results.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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