Dear Sir/Mam,
I am 27 years old. I am earning 72k+ per month.I haven't married yet. But due to family responsibilities and other expenses, I have to do health insurance of 45k rupees and for tax saving I will do ELSS of 90k from this year and NPS of 50k.
Then in hand, I will have around 60k+.As of now I have mandatory expenses of 17k for rent, food and family.
If I add flight expenses also and tax which I need to provide around 19k in a year so around 35-39k are saving per month.So how should I do the investment now. I have to also save emergency fund and some fund for my marriage.
Ans: Income and Expenses
Monthly Income: Rs 72,000+
Health Insurance: Rs 45,000 annually
ELSS: Rs 90,000 annually
NPS: Rs 50,000 annually
Monthly Savings
After taxes and insurance, you have around Rs 60,000.
Mandatory expenses: Rs 17,000
Flight expenses and tax: Rs 19,000 annually (approx. Rs 1,583 monthly)
Available for Savings
Monthly savings: Rs 35,000 - Rs 39,000
Setting Financial Goals
Emergency Fund
Aim for 6 months of expenses.
For you, around Rs 1,20,000 to Rs 1,50,000.
Marriage Fund
Determine an approximate amount needed.
Allocate part of your savings towards this goal.
Investment Strategy
1. Building an Emergency Fund
Use liquid funds for this.
Easily accessible and low risk.
Start by allocating Rs 5,000 per month.
2. Systematic Investment Plan (SIP)
Continue with ELSS for tax saving.
Consider diversifying into large-cap and balanced funds.
Allocate Rs 10,000 per month.
3. National Pension System (NPS)
Good for retirement savings.
Already contributing Rs 50,000 annually.
No need to increase this for now.
4. Diversified Mutual Funds
Include mid-cap and small-cap funds.
High growth potential.
Allocate Rs 10,000 per month.
5. Gold and Safe Instruments
Consider gold ETFs or gold bonds.
Safe investment option.
Allocate Rs 5,000 per month.
Managing Family Responsibilities
Health Insurance
Essential for protecting against medical emergencies.
You are already covered.
Regular Review
Review your investments every six months.
Adjust based on performance and goals.
Disadvantages of Direct Funds
Time-Consuming
Direct funds require more time and knowledge.
Risk of making suboptimal choices.
Lack of Guidance
No professional advice.
May lead to poor fund selection.
Benefits of Regular Funds
Professional Management
Managed by expert fund managers.
Aims to maximize returns.
Convenience
Easier for those without financial expertise.
Saves time and effort.
Final Insights
Creating a balanced investment plan is crucial. Start with building an emergency fund. Diversify your investments through SIPs in mutual funds. Continue with your NPS and health insurance. Reviewing your portfolio regularly will keep you on track. Consult a Certified Financial Planner for personalized advice. This approach ensures your financial security and helps achieve your goals.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
