I have been investing 1 Lac every year in ICICI Pru Future Perfect for my son since 2017. I receive around 16,000 every year as Bonus from ICICI, fixed bonus is around 64,000 which I will receive at the end of term. Was investing in this instrument a wise decision, considering I am looking to fund my son's education.

Ans: Your thinking behind the ICICI GIFT plan shows a good focus on guaranteed income, especially since it offers stability irrespective of market fluctuations. However, with a rate around 6%, the return is modest, especially considering inflation over the years. While it does provide a secure, fixed income, this rate may limit long-term purchasing power.

Since you already have a diversified mutual fund portfolio, a balanced strategy might involve shifting some of your commitment from fixed-return plans to higher-yield instruments over time. This way, you gain more flexibility and potential for growth while still preserving part of your income security.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,

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

Ans: You have taken strong first steps. Starting early, being consistent, and having a clear purpose like child education and marriage are very important. Let us go through your situation from a full 360-degree view. This way you will know what’s going right and what needs change.

Your Current Profile at a Glance
Age: 39

Father of a 2-year-old girl

Started Sukanya Samriddhi Yojana (SSY) in 2023

Mutual Fund investment: Rs?1,63,000 (current value or total invested, not clear)

Kisan Vikas Patra: Rs?2,00,000

New RD: Rs?10,000 per month from April 2025

LIC Endowment: Started in April 2019

Sum assured: Rs?35 lakh

Tenure: 26 years

SIPs running:

Rs?2,000 in PPFAS Flexicap

Rs?3,000 in UTI Nifty 50

Rs?1,000 in Nippon Large Cap

Rs?1,000 in Motilal Midcap

Now let us assess each part carefully with an aim for long-term growth, child education, and marriage.

Assessment of SSY Investment
SSY is a strong option for girl child

Government-backed, tax-free interest

Invest till child is 15, withdraw at 21

Ideal for safe education or marriage funding

However:

Interest rate is not fixed

Currently around 8%

May not beat inflation always

Suggestion:

Keep investing till full limit every year (Rs?1.5 lakh per year)

Use this only for one goal: either education or marriage

For second goal, build corpus through mutual funds

Analysis of Mutual Fund Portfolio
You are investing across 4 mutual funds:

PPFAS Flexicap – Rs?2,000 SIP

UTI Nifty 50 – Rs?3,000 SIP

Nippon Large Cap – Rs?1,000 SIP

Motilal Midcap – Rs?1,000 SIP

Let us assess this mix carefully.

PPFAS Flexicap:

Flexicap funds give freedom to move between large, mid, and small cap

Good for long term and wealth creation

Your SIP here is useful

UTI Nifty 50:

This is an index fund

It only mirrors Nifty 50, no flexibility

Fails to protect during market crash

Gives no scope for active decision-making by fund manager

Nippon Large Cap and Motilal Midcap:

Large cap adds stability

Mid cap brings long-term growth

Together they give diversification

However:

Your investment is small and scattered

SIP amount is very low for long-term child goals

Rs?7,000 monthly SIP won’t build large enough corpus alone

More important point:

Avoid index funds like UTI Nifty 50

They don’t offer downside protection

They do not outperform actively managed funds in tough markets

Better to invest in active mutual funds through regular plans

Work with a Certified Financial Planner and MFD for guidance

Regular plans offer full tracking, review, and guidance

Direct mutual funds lack support.
If you invest directly, there’s no expert monitoring.
Returns may suffer due to wrong fund choice or market timing.
Stick to regular plans and review annually with a CFP.

LIC Endowment Policy Review
You mentioned a LIC endowment plan:

Started April 2019

Rs?35 lakh sum assured

Duration: 26 years

These types of policies are not ideal.
They mix investment and insurance.
They give poor returns (around 4% to 5% yearly).
They block your money for long time.
They lack flexibility and liquidity.

Suggestion:

Exit after 5 years, check surrender value

Use surrender amount in mutual fund or SSY

For insurance, take term insurance separately

Get coverage of Rs?1 crore or more

Keep insurance and investment separate always

Kisan Vikas Patra Investment
You have invested Rs?2 lakh in KVP.

Low risk, government-backed

Doubles your money in around 10 years

But low post-tax return

Not suitable for long-term wealth building

Better suited for short-term savings

Suggestion:

Don’t increase allocation to KVP

After maturity, shift this to mutual funds

Recurring Deposit Plan
You started RD of Rs?10,000/month from April 2025.

Useful for short-term needs

Low returns after tax

Doesn’t beat inflation

Suggestion:

Use RD for short-term goals only

Do not use for child education or marriage

After goal is reached, move funds into SIP

Ideal Plan for Child Education and Marriage
You have 2 clear goals:

Child’s education (age 18-22)

Marriage (age 24-26)

You have 15-20 years for both.
This is long enough to build corpus through equity mutual funds.

Ideal investment plan going forward:

Step up SIPs to Rs?15,000 per month

Allocate to 3–4 actively managed funds

Suggested mix:

Flexi-cap

Large & mid-cap

Mid-cap

Aggressive hybrid

Avoid index funds.

Avoid direct funds.

Invest through Certified Financial Planner.

Work with MFD + CFP to track annually.
They will switch funds when needed.
This ensures consistency and long-term growth.

Term Insurance and Health Cover
You did not mention term plan or health insurance.

Immediate action needed:

Take term insurance for Rs?1.5 crore or more

Keep tenure till child turns 25

Buy separate health cover for family

Minimum Rs?10 lakh floater cover

Add super top-up of Rs?10 lakh

Never depend only on company insurance.
These covers are essential for family security.

Build Emergency Fund
You did not mention any emergency fund.

Plan:

Save 6 months of expenses in liquid fund

Emergency fund is not for investing

Use only for job loss or medical shock

Ideal amount: Rs?3–4 lakh minimum

Build this in 3–4 months

Retirement Planning Angle
You are 39 now.
Retirement is 18–20 years away.
Start investing at least Rs?10,000/month for retirement now.
This should be in a different SIP, not mixed with child goals.

You need separate funds for retirement.
You cannot depend on children or government.
Start early to gain compounding.

Taxation Understanding for Mutual Funds
Equity fund rules:

LTCG above Rs?1.25 lakh taxed at 12.5%

STCG taxed at 20%

Debt fund rules:

LTCG and STCG taxed as per income slab

Plan redemption smartly with CFP support.
Review tax impact every year before withdrawal.

Finally
You are on the right path but need direction.
Your intentions are good.
But current investments need correction and structure.

Key actions now:

Increase SIPs to Rs?15,000–20,000 monthly

Avoid index funds and direct mutual funds

Exit LIC endowment policy after 5 years

Get term and health insurance

Build emergency fund

Allocate investments goal-wise (child education, marriage, retirement)

Review funds yearly with Certified Financial Planner

Don't over-depend on RDs, KVPs, or real estate

Consistency with discipline will help you succeed.
You still have 15–18 years to build wealth.
Use this time wisely with the right plan.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment