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Please ask your questions HERE to rediffGURU Reetika Sharma, who has an MBA from the ICFAI, and professional certifications from the FPSB, AMFI and IRDAI.
Anonymous: Hi, CFPs, As I just attained 60, wish to re-allocate 1 Cr EPF corpus, 25 lakh MF and 75 Lakh existing FD into your suggested financial instruments for taking care of my retirement.
My home debt free, one child education is complete, (marriage pending), Rest no personal liability. I have also a running term insurance for 1 Cr till age of 65 yrs and medicaim for 20 Lakh.
Please advise on investment plan. My monthly expenses are apprx 1.0-1.2 lakh in pune.
Congratulations on your retirement. The mentioned amount (invested correctly) is more than sufficient to fund you forever with your mentioned expenses.
Total corpus: 2 crores. It will be parked in a mix of funds with different risks using bucket strategy to meet your expenses and marriage goal. You can get inflation adjusted amount monthly forever.
But do connect with an advisor to follow the right approach of investment. An advisor will design the required bucket and help you throughout your journey.
Avoid falling in trap of ULIPs or LICs or any policy that comes with a lock-in period.
Anonymous: Hi, I am 48, single. I work as IT professional and currently facing some challenges in job.
Our current annual expense is approximately 12 L. I have small house and do not plan / aspire for any more real estate. Till now I have been able to accumulate 7.2cr all in Bank FD, 80L in PF, 18L in PPF, 15L in stocks and gold (50:50 split).
I do not have any life insurance but have medical insurance for myself (5L retail policy + 8L corporate policy).
I am requesting help that assuming if I lose / leave job immediately how to plan the corpus/investment so that I can generate income from investment and plan for living till 90 years?
You have built a very strong base at your age. I understand your concern regarding job uncertainty and it is rather wise to be prepared for the worst. Let us discuss everything in detail.
> You have 7.2 crores in FD. This entire amount needs to be reinvested in debt mutual funds. This way, the tax on FD interest can be saved. Debt mutual funds provide similar return to FD.
> You also have 80 lakhs in PF -- can be of instant use in case of a job loss.
> 18 lakhs PPF -- again a good debt investment with tax benefit. Continue.
> 15 lakhs in gold and stocks. The allocation here can be increased. You can consider investing 50% of FD amount in equity and hybrid mutual funds. Avoid direct stock investment as these require in-depth knowledge and analysis.
> Medical policy cover is quite less. Take a super top-up policy of 1 crore keeping in mind the rising medical cost.
In case of any job loss, you can easily manage your expenses forever (inflation adjusted).
Keep only 50 lakhs in FD. Move rest amount in mutual funds -- debt, hybrid and equity.
Take a professional's help and do this right away to get maximum tax and return benefit.
Ajay: Hello Sir. Can you please review my portfolio? Currently, i m doing SIP in below funds from last 2 years. Canara small cap -- 3500; DSP Multicap -- 3000; Hdfc flexi cap -- 5000; Icici value discovery -- 3000; Kotak midcap -- 2000; Motilal mid cap -- 3000; SBI Large & mid -- 2500. Total sip per month 22000. And one time also done in above in last one.
Please review and suggest if any changes needed? My target is 10 years.
The mentioned funds are good for 10 years. But the current portfolio is quite overlapping in nature.
- Replace Motilal midcap with Axis bluechip fund.
- Avoid any future lump sum in SBI large midcap fund.
- Make sure to increase your SIP amount whenever possible.
Aarav: Hi,I am 42 years old, having 2 children. First child 12 years old and second child 5 years old. Wife is government teacher. Monthly salary is 2.39 lakhs and my wife's salary is 82 k; investing 1 lakh in Sip with investment in 90% equity having corpus of 1.75 cr, property 1 cr, Jeevan anand 10 lakh. Having only 1 car loan of 20 lakhs, emi 33 k.
Please help to plan my investment as I want to buy house at good location for approx 2 cr and balance should be left for my family's future ask?
You have saved good amount at such age. Let us go through the financials in detail:
Total monthly income -- Rs. 3.2 lakhs; Monthly EMI -- 33k.
> 1 crore property.
> 1.75 mutual funds with 90% equity. SIP of 1 lakh per month.
> 10 lakhs Jeevan Anand.
> Looking forward to buy house worth 2 crores.
You can liquidate existing property worth 1 crore for the down payment of new house and take loan for remaining 1 crores. Also try to reduce loan amount so as to reduce your EMI. Total EMI (home & car) should not exceed 1 lakh per month.
Meanwhile continue your SIPs and try to increase SIP contribution by 10% each year. Get your MF portfolio reviewed by experts periodically.
Anil: Hello Sir, My age is 45 yrs. I have started a SIP of Rs. 14000 on monthly basis in below funds since 2024: 1. TATA SMALL CAP FUND - Rs. 3000/- 2. CANERA REBECO SMALL CAP FUND - Rs. 2000/- 3. QUANT LARGE CAP FUND - Rs. 2000/- 4. ICICI PRUDENTIAL LARGE CAP BLUE CHIP FUND - Rs. 2000/- 5. BANDHAN SMALL CAP FUND - Rs. 2000/- 6. KOTAK SHUBH LABH FUND (COMMODITY FUND) - Rs. 2000/-. Also, I have a lump sum investment of Rs. 5 lakhs 30 thousands.
All these investments are for long terms. My goal is minimum 3 Crores in next 20 yrs. Kindly suggest to reach to the goal and provide best options if any. Thank you.
It's really good that you have started investing in mutual funds for long term via SIP and lump sum amounts.
However the funds you mentioned are very much overlapping in nature and should be avoided. Simply choose 1 largecap, 1 midcap, 1 smallcap, 1 flexicap and 1 asset allocator fund. Stop current SIPs and shift the money into the mentioned mix.
Your current investment can only make 1.8 crores in 20 years. But if you step-up your monthly SIP by 10% each year, you can easily get 3 crores in 20 years (assuming 12% CAGR).
Please redo your portfolio and start new SIPs. Or you can choose to consult a professional Certified Financial Planner who can guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile. A CFP periodically reviews your portfolio and suggest any amendments to be made, if required.
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