Randomly google suggested me ur ask mf and read this page many times, today i have an question regarding my investments.

Mainly i am investing for my retirement but i want to spare something for my 2 daughter's marriages, but not able to decide how. I have created two folios myself without any knowledge, read google, watched youtube and started investing... First folio, all direct fund sips:

1. axis nifty 100 index-500

2. parag parikh flexi-1000

3. axis small cap-500

4. nippon small cap-500

5. icici midcap 150 index-500

6. icici nasdaq 100-100

7. icici technology-500

Total-4000rs

Second folio with wife id:

1. pgim india flexi cap-1000

2. axis small cap-1000

3. nippon small cap-1000

4. axis nifty 100 index-lumpsump only

Total 3000rs

Started from 500rs month and reached 7000 in 1.5years, have plan to step up sip by 5-10% every year now.

Sir, daughters age are 13 and 7. didnt know about sip and mf 2 years back, else i wud have done this from many years.

Kindly suggest me best for future. 

Goals r daughters education (priority)

Daughters marriage (secondary)

Retirement (last but very imp.)

Ans: No changes are required; however, please keep the expectation of returns between 12% and 15%.

Basic thumb rule is risk free returns (10 years govt bond returns) + inflation + equity risk premium.

Ans: It's commendable that you've started investing and are thinking ahead for your daughters' education and marriage. Let's review your current investment choices and see if any adjustments are needed.

Your portfolio seems diversified across various mutual funds, covering different segments of the market. However, it's essential to ensure that your investments align with your financial goals and risk tolerance.

Given your daughters' ages and the timeframe for their education and marriage, you have a reasonably long investment horizon. This allows you to consider a balanced approach between growth-oriented and stable investments.

Regarding specific funds, while I can't provide detailed recommendations on individual schemes, I can offer some general guidance. Evaluate each fund's performance, expense ratio, and consistency over time. Ensure that the funds you've chosen have a track record of delivering returns in line with your expectations and risk profile.

Regularly monitor your portfolio's performance and make adjustments as needed. As your daughters' milestones approach, you may consider gradually shifting your investments to more conservative options to safeguard the capital.

Remember, investing is a long-term commitment, and patience is key. Stick to your investment strategy, and avoid making impulsive decisions based on short-term market fluctuations.

Consider consulting with a Certified Financial Planner to get personalized advice tailored to your financial goals and family needs. They can help you fine-tune your investment strategy and ensure you're on track to meet your objectives.

Keep up the good work with your investments, and stay focused on your long-term financial goals!

Best Regards,

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

Ans: You have made good progress in your financial life. You have already built a solid foundation for your family. Your clear focus on your children’s future shows great planning mindset. Now, let’s work on creating a 360-degree strategy for your question.

You want to know whether your monthly surplus of Rs. 50,000 should go into mutual funds or your trading portfolio. Your main goal is ensuring uninterrupted higher education for your kids.

Let’s evaluate this from multiple angles and develop a solid plan.

 

Family Protection and Stability
You have a term life cover of Rs. 2 crore. This is suitable at your current income level.

 

Health cover of Rs. 15 lakhs from two sources is fine for now. Make sure the cover continues post-retirement.

 

Emergency fund of Rs. 8 lakhs is adequate for 4 to 5 months. Keep this amount safe in a liquid or overnight fund.

 

Your house is fully self-occupied. That gives you emotional and financial stability. Home loan EMI is manageable.

 

Mutual Funds Assessment
You have Rs. 31.50 lakhs invested in mutual funds. Your SIP is Rs. 30,000 per month, with a 10% annual increase.

 

You’re getting approx. 9.4% post-tax. That’s a good estimate for long-term returns.

 

This approach brings compounding benefits with much less risk than trading.

 

For your children's higher education goals, mutual funds are reliable and steady.

 

Use regular plans through a Mutual Fund Distributor with CFP qualification. They offer personalised guidance and behaviour management.

 

Direct funds lack regular reviews and support. Emotional discipline is hard without a professional.

 

The ongoing advice from a certified professional justifies the slightly higher cost of regular funds.

 

Trading Portfolio Assessment
Your trading capital is Rs. 35 lakhs. You earn around Rs. 50-55k monthly, which is around 17–18% yearly.

 

You use hedging and discipline. That’s rare and commendable for an individual trader.

 

However, trading always carries higher risk. You are the single point of control.

 

In case of health issues, burnout, or market stress, trading income may drop suddenly.

 

Your trading profits are not yet withdrawn. That’s good for compounding. But you must not depend on it for key goals like children’s education.

 

Don’t overexpose family goals to a high-volatility asset class like trading.

 

Children’s Education Planning
Your son is 5 and daughter is 2. So you have 12 to 16 years to build the corpus.

 

For both kids, higher education costs will rise with inflation. Foreign education may need Rs. 1 to 1.5 crore or more.

 

To build this large corpus, you need consistent growth with low downside.

 

Mutual funds can meet this need better than trading due to lower volatility.

 

Set two separate mutual fund buckets: one for your son and another for your daughter.

 

Allocate long-term SIPs to each child. Use goal-based investing strategy.

 

Consider a staggered withdrawal strategy 2-3 years before each education milestone. This reduces market timing risk.

 

Use a mix of diversified equity and hybrid funds. They balance growth and safety.

 

Ideal Use of Rs. 50,000 Surplus
Out of your monthly surplus of Rs. 50,000, invest Rs. 35,000 into mutual funds for your children’s education.

 

Use the remaining Rs. 15,000 to reduce your home loan principal faster.

 

Early loan repayment saves interest. It also gives you psychological peace.

 

Avoid investing this surplus in trading portfolio for now. It already has adequate capital.

 

Refrain from increasing your trading capital unless your core goals are fully funded.

 

Your Existing Mutual Fund SIP
Continue the Rs. 30,000 monthly SIP. Keep increasing it by 10% annually as planned.

 

Split the SIP across child education goal, your own retirement, and optional goals like a travel fund.

 

Tag each SIP to a specific goal. It brings more clarity and purpose.

 

Review fund performance once every 6 months with a Certified Financial Planner.

 

Switch schemes only if underperformance is consistent for more than 2 years.

 

Avoid switching based on 6-month return charts or short-term news.

 

Home Loan Strategy
Outstanding loan is Rs. 20 lakhs. EMI is Rs. 14,750. Tenure might be long.

 

Use bonus or annual surplus to prepay 1–2 lakhs every year.

 

Keep one EMI worth of funds as buffer for safety.

 

Close the home loan before your younger child reaches 10 years.

 

This way, you’ll be loan-free before major education costs begin.

 

Tax Planning and Future Inflation
Factor in inflation of 6-7% per year for all long-term goals.

 

Use SIPs in growth option. Withdraw using Systematic Withdrawal Plan near goal years.

 

Mutual Fund Capital Gains are taxed as per new rules.

 

Equity LTCG above Rs. 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

 

Keep track of capital gains annually. Plan redemptions accordingly.

 

File income tax returns carefully showing mutual fund and trading income separately.

 

What to Avoid
Don’t invest in ULIPs, traditional insurance plans, or endowment policies.

 

Don’t add to your trading portfolio for now. Your current capital is enough.

 

Don’t invest for children’s education in FD or gold. These can’t beat education inflation.

 

Don’t go for index funds. They lack active risk management and sectoral allocation.

 

Actively managed funds by seasoned fund managers give better flexibility and performance.

 

Stay away from direct funds. A trusted MFD with CFP helps avoid behavioural mistakes.

 

Don’t stop your SIPs during market fall. That’s when wealth is truly built.

 

Don’t use annuities. They are tax inefficient and inflexible.

 

Risk Management and Will
Keep your emergency fund in a safe and liquid form. Update it annually.

 

Nominate spouse and children in all investments.

 

Prepare a simple will. Mention mutual fund folios, trading accounts, and home ownership clearly.

 

Maintain a one-pager with account numbers, folio IDs, and insurance policy details.

 

Review this once a year with spouse. Keep it safe.

 

Monitoring and Review
Review your portfolio once every 6 months with your certified planner.

 

Don’t panic if markets fall. Your mutual fund SIPs benefit from this.

 

Review trading portfolio quarterly. Set a drawdown rule to limit risk.

 

Have a goal-wise dashboard. Track how much is accumulated for each child.

 

Rebalance your mutual fund portfolio every 2–3 years.

 

Increase SIPs as your income grows. Keep lifestyle inflation under check.

 

Final Insights
Your current setup is already strong. You have built a good financial foundation.

 

Your clarity about goal and savings discipline is rare and appreciable.

 

Now is the time to shift more focus on guaranteed future needs like child education.

 

Mutual funds bring low-risk, long-term compounding. Use it as your main tool.

 

Keep trading as a wealth booster. But don’t use it for children’s education funding.

 

Stick to regular mutual fund plans with goal-based approach through a trusted MFD with CFP credentials.

 

Avoid over-diversifying or over-trading. Simplicity and patience bring true financial freedom.

 

Best Regards,
K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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