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Nitin Narkhede |77 Answers |Ask -Follow

MF, PF Expert - Answered on May 25, 2025

Nitin Narkhede, founder of the Prosperity Lifestyle Hub, is a certified financial advisor with eight years of experience in helping clients design and implement comprehensive financial life plans.
As a mentor, Nitin has trained over 1,000 individuals, many of whom have seen remarkable financial transformations.
Nitin holds various certifications including the Association Of Mutual Funds in India (AMFI), the Insurance Regulatory and Development Authority and accreditations from several insurance and mutual fund aggregators.
He is a mechanical engineer from the J T Mahajan College, Jalgaon, with 34 years of experience of working with MNCs like Skoda Auto India, Volkswagen India and ThyssenKrupp Electrical Steel India.... more

Asked by Anonymous - May 24, 2025

Money

I m 37yrs old i have 67 thousand per month salary i want to build a house and want to take home loan of 40 lakh I m confused it is my bad decision or good after all i have to pay a huge amount for 20yrs long time ..plz help

Ans: Dear Friend,
Taking a ?40 lakh home loan at age 37 on a ?67,000 monthly salary is a major financial decision that requires careful planning. Ideally, your EMI should not exceed 40% of your monthly income—around ?27,000 in your case. A ?40 lakh loan for 20 years at 8.5% interest would mean an EMI of approx ?34,700, which is over 50% of your income—this can be risky, especially if you have other expenses or no emergency fund.

Suggestion:

Reduce loan amount by saving more or choosing a smaller house.

Try for a co-applicant (like a working spouse) to improve eligibility.

Ensure you have a 6-month emergency fund before taking a loan.

Reconsider the timing or loan size if it strains your finances.
It’s not a bad goal—but proceed only if it fits your budget safely.
Regards, Nitin Narkhede -Founder, Prosperity Lifestyle Hub,
Free webinar https://bit.ly/PLH-Webinar

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

Question by Akshay - Jul 10, 2024Hindi

Money

Good Day Sir, I am 33 now and both husband and wife earning around 1.6 lakhs per annum. We are renting a home of 18000 PM. Total expenses are 1.3 lakhs per month(Including Insurance, basic expenses, term, mutual fund). Investing 21000 PM in mutual fund, want to take a home in city like Noida of around 65 Lakhs. Loan would be around 50 lakhs for 20 yrs of time frame. Current savings is around 20 Lakhs. Can I take a home on loan now or should I wait?

Ans: Assessing Your Current Financial Situation
Income and Expenses
You and your spouse earn around Rs 1.6 lakhs per month.

Your total expenses are Rs 1.3 lakhs per month.

This includes rent, insurance, basic expenses, and mutual fund investments.

Savings and Investments
You are investing Rs 21,000 per month in mutual funds.

Your current savings stand at Rs 20 lakhs.

Home Purchase Consideration
You want to buy a home in Noida worth Rs 65 lakhs.

You plan to take a home loan of Rs 50 lakhs for 20 years.

Financial Stability and Decision-Making
It's crucial to understand the impact of this decision on your financial stability.

Buying a home is a significant financial commitment.

Evaluating the Home Loan Option
Loan Details
A home loan of Rs 50 lakhs for 20 years.

Monthly EMI will depend on the interest rate.

EMI Impact on Monthly Budget
Calculate the EMI to understand its impact on your monthly budget.

Ensure the EMI fits within your budget without straining finances.

Comparing Renting vs. Buying
Currently, you pay Rs 18,000 per month in rent.

Compare this with the expected EMI.

Buying a home may offer long-term benefits.

Pros and Cons of Buying a Home Now
Advantages of Buying Now
Fixed Asset
Owning a home provides a sense of security.

It's a long-term investment for your family.

Appreciation Potential
Property values in Noida may appreciate over time.

This can be beneficial for your investment.

Personalization
You can customize your own home to your liking.

This adds to your comfort and satisfaction.

Disadvantages of Buying Now
Financial Strain
A large EMI could strain your monthly budget.

Ensure you can manage all expenses comfortably.

Opportunity Cost
Using savings for a down payment may reduce your liquidity.

Consider the impact on your emergency fund.

Interest Burden
Home loans come with interest payments.

This adds to the total cost of the property.

Alternative Investment Options
Increasing Mutual Fund Investments
Consider increasing your mutual fund investments.

This can help build a larger corpus over time.

Power of Compounding
Mutual funds benefit from compounding returns.

The longer you invest, the more your money grows.

Risk Diversification
Diversify your investments across different mutual fund categories.

This reduces risk and enhances returns.

Regular Funds vs. Direct Funds
Benefits of Regular Funds
Investing through an MFD with CFP credentials provides professional guidance.

Regular funds offer advisory support.

Drawbacks of Direct Funds
Direct funds require more active management.

You may miss out on expert advice and insights.

Assessing the Timing
Market Conditions
Consider the current real estate market conditions in Noida.

Buying during a favorable market can be advantageous.

Personal Financial Goals
Align your home purchase with your long-term financial goals.

Ensure it doesn't compromise other important financial objectives.

Future Income Prospects
Evaluate your future income prospects.

A stable or increasing income can support your loan repayment.

Final Insights
Comprehensive Financial Plan
Create a comprehensive financial plan.

Include your home purchase, investments, and savings goals.

Emergency Fund
Maintain a robust emergency fund.

Ensure you have 6-12 months of expenses saved.

Professional Guidance
Consult a Certified Financial Planner (CFP).

Get personalized advice tailored to your financial situation.

Balanced Approach
Balance your home loan with other financial commitments.

Ensure a comfortable lifestyle without financial stress.

Regular Review
Regularly review your financial plan.

Adjust it based on changes in income, expenses, and goals.

Long-Term Perspective
Keep a long-term perspective.

Consider the overall impact of your financial decisions on your future.

Conclusion
Buying a home is a significant decision.

Assess all factors carefully.

Ensure it aligns with your financial goals and stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Asked by Anonymous - Jul 14, 2024Hindi

Money

Hi I am 35 year old doing govt. Job in railway Getting 49k in hand having fixed expenditure of 30K think for taking home loan for 20lac Having 2.5 lac in stocks and mutual fund Is it good to go for better home as i sold my 2bhk home for new 3bhk home Or else take low amt loan and settled with other 2bhk as previous one was not in good society. But being new good society increase my other expenses like maintenance I have one son 7 year old

Ans: Evaluating Home Loan Options and Financial Impact
Current Financial Situation

Income: Your monthly take-home pay is Rs 49,000.
Fixed Expenditure: Your monthly expenses are Rs 30,000.
Savings: You have Rs 2.5 lakh invested in stocks and mutual funds.
Family: You have a 7-year-old son.
Home Loan Considerations
Loan Amount and Monthly EMI

Loan Amount: Considering a home loan of Rs 20 lakh.
EMI Calculation: Ensure the EMI fits within your budget. Typically, a Rs 20 lakh loan over 20 years may have manageable EMIs. However, calculate the exact EMI based on the loan tenure and interest rate.
Affordability Assessment

Existing Expenditure: With Rs 30,000 spent monthly, assess how the EMI will affect your finances.
Additional Costs: New maintenance costs in a better society can increase your expenses.
Current Savings: Your Rs 2.5 lakh investments provide a financial cushion but may not be enough for large emergencies or unexpected expenses.
Evaluating New Home vs. Existing 2BHK
New Home Benefits

Better Society: A new 3BHK home in a better society offers improved living conditions.
Space: Additional space can be beneficial for your growing family.
Existing 2BHK Considerations

Lower Loan Amount: Opting for a smaller loan may be financially safer.
Maintenance Costs: Consider the potential rise in monthly maintenance charges in a better society.
Financial Implications of Each Option
High Loan Amount for New Home

Increased EMI: A higher loan amount will result in higher EMIs.
Impact on Budget: Ensure your monthly budget can comfortably handle this increase.
Maintenance Costs: Factor in increased maintenance charges.
Low Loan Amount for Existing Home

Reduced EMI: Lower loan amount leads to lower EMIs.
Financial Cushion: Less strain on monthly budget and better financial flexibility.
Maintenance Costs: Lower costs may be manageable within your current expenditure.
Financial Health and Future Planning
Emergency Fund

Current Savings: Rs 2.5 lakh is a good start, but ensure you have an emergency fund equivalent to at least 6 months of expenses.
Investment Growth

Long-Term Planning: Invest any surplus wisely to build wealth and cover future expenses like your child’s education.
Professional Advice

Certified Financial Planner: Consult with a Certified Financial Planner to get a detailed analysis of your financial situation and best loan options.
Final Insights
Loan Suitability: Evaluate the loan amount based on your budget and future expenses.
Existing vs. New Home: Weigh the benefits of a new home against the financial strain of a larger loan.
Financial Cushion: Ensure you have a robust emergency fund to handle unexpected costs.
Taking a calculated approach will help you make a well-informed decision. Consulting a Certified Financial Planner can provide additional insights tailored to your specific situation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 01, 2025

Question by Shubham - Jan 31, 2025Hindi

Money

I am 28 & earning net 70k, my wife is earning 50k net and my mother has pension of 30k. Means 1.5Lacs per month in hand. I am planning to take a home loan of 60lacs for 20years, which will have 50-55k emi. We have a 5 month baby. Should i take this much loan or should i prefer a smaller house & take smaller amount of loan.

Ans: Buying a home is a major financial step. A home loan impacts cash flow and future goals. Careful planning is important before taking a big loan.

Your total family income is Rs. 1.5 lakh per month. You are considering a Rs. 60 lakh loan for 20 years. The EMI will be around Rs. 50,000 to Rs. 55,000 per month.

Let’s analyse if this is the right decision.

Impact of a High EMI
Your EMI will be about 35% of your total income.
This is manageable, but it reduces flexibility.
A large EMI means less money for savings and investments.
Your monthly cash flow may get affected.
A lower loan amount means a lower EMI and better financial flexibility.

Future Expenses to Consider
Your baby’s expenses will increase. Education and medical costs will rise.
Household expenses may increase with inflation.
Lifestyle expenses may grow over time.
You may need to save for retirement early.
A smaller home loan gives more room for future expenses.

Emergency Fund Requirement
You must keep 6 to 12 months of expenses as an emergency fund.
A high EMI reduces the ability to build an emergency fund.
Medical emergencies or job loss can create financial stress.
Ensure your emergency fund is strong before taking a big loan.

Investment and Wealth Creation
You must continue investing for future financial goals.
A high EMI may reduce the ability to invest regularly.
If most of your income goes towards EMI, wealth creation slows down.
Keeping EMI manageable helps in long-term financial growth.

Home Loan Interest Burden
A Rs. 60 lakh loan over 20 years means high interest payments.
The total interest paid may be equal to or more than the loan amount.
A smaller loan means less interest burden and early repayment.
A lower loan amount can help achieve debt-free status faster.

Stability of Income
Your income is stable, but future risks exist.
A job change, career break, or business loss can affect loan repayment.
A smaller EMI helps in managing risks.
Avoid overstretching on EMI to maintain financial stability.

Loan Tenure and Flexibility
A shorter tenure means higher EMIs but less interest paid.
A longer tenure means smaller EMIs but more interest paid.
Prepaying a loan early can reduce interest burden.
Choose a loan tenure that keeps EMI affordable but allows faster repayment.

Alternative Approach
Consider a smaller loan with a higher down payment.
Buy a house that meets your needs but reduces financial strain.
Invest the saved amount in higher-return assets.
Balancing homeownership and investment leads to better financial growth.

Family Financial Security
Ensure adequate health and life insurance before taking a loan.
A home loan is a long-term commitment.
Securing your family financially is more important than a bigger house.
A well-planned loan should not affect your financial security.

Renting vs Buying
Compare the cost of renting a similar house.
If rent is significantly lower than EMI, renting may be better for now.
Buying later with higher savings can reduce loan burden.
A wise decision considers both financial and lifestyle factors.

Finally
A Rs. 60 lakh loan is manageable but may reduce financial flexibility.
A smaller loan can help maintain balance between EMI, savings, and investments.
Ensure emergency funds, insurance, and future expenses are covered before taking a big loan.
Buying a house should not compromise wealth creation and financial security.
Making a practical decision will keep your finances strong in the long run.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 14, 2025

Money

I am 29 and have salary of 6 lakh. I am unable to decide if I should take home loan for 60 Lakhs

Ans: At 29 years old with a salary of Rs. 6 lakh, it is natural to feel confused about taking a home loan of Rs. 60 lakh. Let us assess this from every angle to help you take a wise decision.

You will find clarity as we go through all important aspects. Let us go step by step.

Understanding Your Financial Situation
You earn Rs. 6 lakh per year. That is Rs. 50,000 per month.

A Rs. 60 lakh home loan means a high EMI every month.

Most lenders will expect you to pay Rs. 48,000 to Rs. 55,000 per month as EMI.

Your EMI could eat up nearly your full monthly salary.

This is not a comfortable or safe financial position.

You may not have enough left for other expenses or goals.

Even a small emergency can create huge stress in such a tight budget.

Your Age and Career Stage
At 29, you are early in your career. Growth is possible.

But early years also carry career uncertainties.

You may switch jobs or cities. Or wish to study further.

A big loan reduces flexibility in your career choices.

If income is unstable, EMI stress can become a burden.

It's wiser to build financial strength before big commitments.

Home Loan and Bank Rules
Banks allow EMI up to 50% of income in general.

For a Rs. 50,000 salary, safe EMI is below Rs. 25,000.

A Rs. 60 lakh loan goes far beyond this limit.

Most banks may not even approve your loan alone.

They may ask for a co-borrower with income.

Or they may reduce the loan size or increase tenure.

Longer tenure means more interest cost.

Higher loan size means higher down payment too.

Have you saved at least Rs. 10-15 lakh as down payment?

If not, you will need to take a personal loan too. That is risky.

Renting vs Buying in Your Case
Renting is flexible, light, and low on commitment.

You can change house, city, or job with ease.

Owning a house means heavy EMIs, taxes, and maintenance.

It also means less liquidity for emergencies.

In your income range, renting is more practical.

If your salary crosses Rs. 12-15 lakh later, then buying is easier.

Your Other Financial Goals
Do you have an emergency fund of 6 months’ expenses?

Do you have a health insurance and a term insurance?

Have you started your SIPs for wealth building?

Are you saving for retirement or other future goals?

These are more important than owning a house right now.

Owning a house can wait. Wealth building cannot.

First build strong financial foundation through SIPs in mutual funds.

Use regular plans through a trusted MFD with CFP credential.

Disadvantages of Index Funds
Index funds are unmanaged. They blindly copy the index.

They do not protect your money during market falls.

They perform well only in bullish markets.

There is no expert management for risk.

Actively managed funds have better downside protection.

A Certified Financial Planner can help you choose better performing funds.

Dangers of Direct Mutual Funds
Direct funds seem cheaper but are often misused.

There is no guided review or personalised help.

You may make wrong choices in fund type or category.

Without an expert, your returns can suffer over time.

Always prefer regular funds with guidance from a CFP through an MFD.

Emotional Readiness to Own a Home
Owning a house feels good emotionally.

But emotional comfort must match financial strength.

Are you buying to impress family or society?

Or do you really need a house now?

Let emotions wait. Let logic lead.

Financial peace is better than emotional impulse.

Rising Cost of Living
Food, rent, fuel and lifestyle costs are all rising.

EMIs should never choke your day-to-day comfort.

Sudden expenses like weddings, illness or loss of job can hit.

With a high loan, you will have no cushion.

Living within means is safer than stretching for status.

Use the Time to Grow Your Wealth
Build your SIPs slowly and increase them every year.

Build Rs. 30 to 50 lakh over 5-7 years in mutual funds.

This can become your future home down payment.

Or help you buy a house without a huge loan.

Let compounding work for you first.

Your Long-Term Security
What if you want to retire early?

What if you want to start a business in 5 years?

What if you want to support parents or travel the world?

All these dreams need money and flexibility.

A home loan of Rs. 60 lakh ties you down.

Delay it till your income is strong and stable.

Don’t Mix Insurance with Investment
If you are also paying for LIC or ULIP policies, rethink them.

These policies have poor returns and high lock-in.

If you hold them, consider surrendering and reinvesting in mutual funds.

Mutual funds give more transparency and higher long-term growth.

Income-to-EMI Ratio Must Be Comfortable
Ideally, EMI must not exceed 30% of your take-home salary.

You are far above this limit with Rs. 60 lakh loan.

Wait till your income crosses Rs. 1.5 lakh per month.

That is the time to take big commitments safely.

Loan Eligibility is Not Same as Affordability
Just because the bank approves, doesn’t mean you can afford.

Banks do not check your lifestyle goals or future plans.

You must take full responsibility of your decision.

Afford only what fits your budget and life goals.

Market Cycles and Interest Rates
Interest rates are not fixed forever.

EMI may go up in the future if rates rise.

That will add more pressure on your income.

Property markets may also not grow much in 5 years.

Do not assume your house will grow quickly in value.

Focus more on liquidity and wealth than immovable assets.

Building Net Worth with Peace of Mind
Mutual fund SIPs give you peaceful growth without burden.

They are flexible, liquid and growth-oriented.

You can pause, stop or increase anytime.

You can access money in emergencies.

You are in full control of your money.

Finally
A home loan of Rs. 60 lakh is too big for Rs. 6 lakh income.

It can cause stress and reduce life quality.

First focus on saving, investing, and growing your income.

Once your income grows and savings rise, buying a house gets easier.

For now, rent peacefully and invest wisely.

Build a secure financial base before taking large loans.

You are doing well already by thinking long term. Keep going.

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

Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 14, 2025

Money

I am 29 and have salary of 40000 per month. I am unable to decide if I should take home loan for 60 Lakhs

Ans: Assessing Your Home Loan Readiness at Rs. 40,000 Salary

Taking a home loan is a big decision.

At 29, you have age on your side.

But your current salary matters most.

Let us look at every aspect carefully.

This is a 360-degree review of your situation.

Each point is explained in simple words.

You will understand all pros and cons.

You can then decide with full clarity.

Income versus Loan Size

Your salary is Rs. 40,000 per month.

A Rs. 60 lakh loan is very large for this income.

Home loan EMI on this loan may go beyond Rs. 45,000.

That is already more than your salary.

Banks usually allow only 40-50% of salary as EMI.

You may not get loan approval unless you have co-applicant.

Or unless you show large additional income from other sources.

Even if loan is approved, repayment will be stressful.

You may not have money left for basic expenses.

No room will be left for savings or emergencies.

Loan Eligibility Issues

Banks look at your income and age.

With Rs. 40,000 income, ideal loan is only Rs. 15-20 lakhs.

You may be offered higher loan if there is property co-owner.

A working spouse or parent as co-applicant helps.

But both of you will be under financial pressure.

It can cause stress in future.

Living Costs and Budget Strain

After taxes and deductions, net salary may be Rs. 35,000.

Out of this, rent, food, transport, utilities all need money.

If EMI alone becomes Rs. 45,000, there is no money left.

You may borrow more to cover living.

This creates debt trap very early in life.

Emergency Needs and Savings Impact

Emergencies come without warning.

You need savings for hospital, family needs or job loss.

EMI burden leaves nothing for saving or insurance.

In an emergency, your loan EMI may default.

That hits credit score badly for many years.

Recovery agents can also become a problem.

Job Security and Income Uncertainty

You are still young and career is just beginning.

You may change jobs or shift cities later.

Some months may have no salary or less salary.

In such months, you will struggle to pay EMI.

That stress affects health and career both.

Better Alternatives for Now

Instead of buying house, first build wealth.

Start SIPs in actively managed mutual funds.

Prefer regular plans through CFP and MFD.

Avoid direct funds. They offer no guidance or support.

Direct funds suit experts, not new investors.

You get no behavioural coaching or rebalancing support.

Regular funds offer ongoing help from certified professionals.

They also help you stick to your goals.

Avoid Index Funds for Now

Index funds just copy market. They never beat it.

They work well in developed markets, not in India.

Indian markets still offer alpha from active management.

Good fund managers beat index through smart allocation.

So prefer active funds with proven track records.

Always invest through MFD guided by a Certified Financial Planner.

Renting is a Smarter Option for Now

You can live in a good house on rent.

Rent will be much less than EMI.

This keeps your budget flexible and manageable.

You can change house as per need or job.

No property tax, no maintenance cost, no loan stress.

Buying Later with Confidence

Build a strong financial base first.

Grow income and increase savings rate.

Invest in equity mutual funds through SIP.

Build Rs. 10-15 lakhs in 5 years.

At that stage, think about home buying.

Your loan eligibility will also improve.

Then you can afford EMI without fear.

Insurance Cover is Important

You must protect yourself before buying house.

Take a pure term insurance cover of Rs. 50 lakhs at least.

Also get Rs. 5 lakh health cover for yourself.

Without these, your family may face burden if something happens.

Discipline and Patience are Key

Do not rush to buy house early.

It may look attractive but becomes financial trap.

Rent for now. Invest wisely. Build wealth.

In 5 to 7 years, buy comfortably with higher income.

That way your future remains free and peaceful.

Evaluate Your Current Liabilities

Check if you have any other EMIs or credit card dues.

Avoid adding more debt over existing debt.

Too many loans affect loan approval and credit score.

Clear all short-term loans before thinking of home loan.

Plan Your Finances First

Create a monthly budget with a CFP.

Plan for expenses, savings and goals.

Track your cash flow every month.

Keep minimum 6 months’ expenses in bank as emergency fund.

Review your financial plan every year.

Understand Emotional Pressure

Friends or family may push you to buy now.

But your situation is unique and needs analysis.

Emotional buying causes financial damage later.

Think long term. Be logical and practical.

Loan Against Property is Risky

If you can't repay loan, bank will take the house.

This becomes huge emotional and financial loss.

Never commit to EMI if you are unsure about stability.

Your first focus should be building secure financial foundation.

Build Good Credit History

Take a small consumer durable loan or credit card.

Use and repay on time for 2-3 years.

This builds strong credit score.

When you apply for home loan later, it helps.

Stay Away from ULIPs or Endowment Plans

These mix insurance and investment.

They offer poor returns and high charges.

Buy pure insurance separately. Invest separately.

ULIPs block your money for 5+ years unnecessarily.

Do Not Depend on Real Estate Appreciation

Property prices don’t always go up fast.

Property also has high maintenance and taxes.

You can’t sell part of it when in need.

Mutual funds give flexibility and better liquidity.

Use Surplus to Start SIP Now

Even if you save Rs. 5000 per month, start SIP.

Prefer balanced funds or multi-asset funds for start.

Slowly increase SIP as income rises.

Let this habit grow wealth quietly over time.

Finally

You are young and have time on your side.

But salary of Rs. 40,000 can’t support Rs. 60 lakh loan now.

Avoid loan stress. Build income and savings first.

Rent and invest. Plan with a Certified Financial Planner.

You will be in strong position within 5-7 years.

Then you can buy house peacefully and proudly.

Until then, stay focused on growth and savings.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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My son got 90.6 percentile in JEE main. He is getting CSE in UPES. Is it worth to join?

Ans: Hello DA
Congratulations to you and your son. It is worth to join CSE @ UPES-D
Best of luck to you.
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Radheshyam

Ramalingam Kalirajan |8540 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 28, 2025

Question by Salma - May 28, 2025

Money

Hi sir, I am a single working woman. I will be 39 years old in the next three months. I have 10 lacs in FD , 5lacs in savings account, 7.4 lacs in sip investment made systematically over one year,2.24lacs in digital gold and 1.6lacs in stocks investment made this year. Also, I have 200 grams of physical gold. I have a take home salary of 77k after superannuation and PF deductions. My rent is 12k and living expenses of 8k. My monthly contribution to sip is 32k and digital gold is 5k.Like everyone I dream of having my own house someday but the rising real estate prices in Bangalore have me really concerned. Please help me plan my investments in order to buy a house of 1cr or 1.25cr in the next few years. Also please advise me on investment for my future too.

Ans: Thank you for sharing such clear and thoughtful details about your current financial situation. It reflects your discipline and commitment to creating a secure future for yourself. Let us now build a structured investment plan, with special focus on two key goals — buying a house and long-term financial security.

Please note, I will not recommend real estate investment. Instead, I will help you grow wealth with more control and less risk.

Let us start your 360-degree financial planning journey in a detailed and practical manner.

Your Current Financial Snapshot

You are 39 and single, with full financial independence.

You have a monthly take-home salary of Rs. 77,000 after all deductions.

Your current SIP contribution is Rs. 32,000 every month, which is quite high. Very good.

You also invest Rs. 5,000 monthly in digital gold.

You live on a modest rent of Rs. 12,000 and daily expenses of Rs. 8,000. Great control.

You have Rs. 10 lakh in FD and Rs. 5 lakh in savings. This gives you a cash reserve of Rs. 15 lakh.

You have 200 grams of physical gold and Rs. 2.24 lakh in digital gold.

You have stocks worth Rs. 1.6 lakh and Rs. 7.4 lakh in mutual fund SIPs.

You aim to buy a house worth Rs. 1 crore to Rs. 1.25 crore in a few years.

Your portfolio shows balance, safety, and a good effort toward growth. Let us now build on this strength.

Step-by-Step Review of Your Portfolio

Emergency Fund Allocation

You are keeping Rs. 5 lakh in savings account. This is good for emergency use.

Your FD of Rs. 10 lakh is also low-risk and liquid.

Together, you have 15 lakh emergency backup. That is very strong.

You don’t need to increase this further. This is more than 12 months of expenses.

Instead of plain FD, you may use short-term debt mutual funds. They may give better returns.

But you must invest through MFD with a Certified Financial Planner for safer fund choices.

SIP Contributions Review

You are investing Rs. 32,000 monthly in mutual funds through SIPs.

You also invest Rs. 5,000 in digital gold monthly.

Your SIP amount is around 42% of your take-home salary. Very impressive commitment.

This may be too aggressive if your goal is a house in 5 years.

A part of this should move to safer hybrid or short-term funds.

Too much in equity SIP for short-term goals is risky.

Digital Gold and Physical Gold Holdings

You have 200 grams physical gold. This is around Rs. 13 lakh at current value.

You also have Rs. 2.24 lakh in digital gold.

And you invest Rs. 5,000 every month into digital gold.

Total gold holding is over 20% of your total net worth.

That is slightly on the higher side. Reduce new investment in gold.

Use that amount towards building a diversified mutual fund plan.

Gold should not be more than 10-12% of your portfolio ideally.

Stock Market Investment

You have Rs. 1.6 lakh invested in direct stocks this year.

Direct stock investing carries high risk, especially without full research.

You may continue small allocation here, but limit it to 5% of your portfolio.

Mutual funds are safer as they are actively managed by experts.

Index funds are passive. They don’t work well in sideways markets.

Active mutual funds give better opportunities in dynamic Indian markets.

Do SIPs in regular funds through Certified Financial Planners only. You get ongoing support.

FD and Savings Balances

Rs. 10 lakh FD is good for safety. But return is lower than inflation.

You can move Rs. 5 lakh into ultra short-term debt funds.

These are better than FDs for short- to medium-term goals.

You can still keep Rs. 5 lakh in savings and FD combined.

That is enough liquidity for medical and emergency needs.

House Buying Plan – Rs. 1 Crore Target

You want to buy a house worth Rs. 1 crore to Rs. 1.25 crore.

You must plan for down payment of at least Rs. 20 to Rs. 25 lakh.

Rest will come from a home loan.

You are currently saving well. You can reach this down payment goal in 4–5 years.

Shift some SIPs into balanced advantage funds or equity and debt hybrid funds.

These give better safety for medium-term goals.

Use Rs. 5–6 lakh from your existing FD after 4 years for down payment.

Do not sell gold for down payment unless absolutely needed.

Loan EMI should be below 30% of your salary. Don’t over-leverage.

Banks may approve up to 40%, but that’s risky for single income.

Prefer house only after you have 25% in hand and job stability.

Future Retirement and Financial Security

You are 39 now. So you still have 18–20 years to retirement.

You must start a separate SIP goal for retirement planning.

Use equity mutual funds with long-term focus and low churn.

Avoid direct funds. They don’t give any hand-holding support.

Regular mutual funds give personalised help from Certified Financial Planner.

Regular plans also come with fund monitoring and switching support.

They help you make better decisions in market falls.

Plan Rs. 10,000 per month towards this retirement corpus goal.

Use lump sum from savings to boost this corpus once house goal is done.

Other Goals and Life Planning

You may plan for medical insurance if not already taken.

Get at least Rs. 10 lakh health cover. Buy it personally, not only from employer.

Also take personal accident cover. It is cheap and important.

Create a basic Will. Mention nominees for all investments.

Update your financial records regularly. Maintain one file for all logins and folios.

Do not invest in ULIP, LIC endowment, or insurance policies as investment.

They give very poor returns and no flexibility. SIP in mutual funds is better.

If you have any such policies, consider surrendering and reinvesting in mutual funds.

How to Reorganise Your Portfolio

Keep Rs. 5 lakh in savings and FD combined. Use rest from FD for investment.

Stop digital gold SIP. No need to grow gold exposure now.

Out of Rs. 32,000 SIP, move Rs. 15,000 into medium-risk hybrid funds.

Continue Rs. 10,000 SIP in long-term equity funds.

Start new Rs. 10,000 SIP for retirement goal.

Review direct stocks annually. Don’t trade often.

Invest any annual bonus or extra income into your future corpus.

Make sure all SIPs are in regular plans with Certified Financial Planner support.

Avoid index ETFs or Nifty Bees. They don’t manage downside or capital risk.

Don’t aim to time the market. Focus on discipline and long-term horizon.

Tax Implications to Keep in Mind

LTCG from equity mutual funds above Rs. 1.25 lakh is taxed at 12.5%.

STCG from equity is taxed at 20%.

Debt funds are taxed as per your income slab.

Plan redemptions smartly to reduce tax burden.

Use systematic withdrawal plans post-retirement to avoid lump sum tax hit.

Finally

You are doing excellent so far with your investments.

Your saving and investing habits are strong and forward-looking.

Just shift some SIPs to safer funds for house goal.

Reduce gold buying now and increase retirement investing.

Stick to regular funds with planner support. Avoid direct and index options.

Continue being disciplined, and your financial dreams will take shape soon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Radheshyam Zanwar |2423 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on May 28, 2025

Asked by Anonymous - May 27, 2025

Career

For AEEE rank : 2891, can I get a CSE seat in Coimbatore campus of Amrita? What is your opinion on Bangalore and Kerala campuses.

Ans: Hello dear
We are unable to forecast the admission and counseling procedures at Amrita. Please maintain contact with the administration and counseling team at Amrita. They will reach out to you.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |2423 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on May 28, 2025

Asked by Anonymous - May 27, 2025

Career

Hi sir, this query is for my son. He got the admission in DSAI branch at thapar but now he is confuse between DSAI and CSE which is the best option for future placement

Ans: Hello dear.
Eliminate uncertainty and choose DSAI, keeping in mind the promising opportunities ahead. The future belongs to AI.
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Radheshyam Zanwar |2423 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on May 28, 2025

Question by D - May 28, 2025

Career

Cse in SRM ktr and cse vit velore , Vit Ap Which one is better. Pl sugest

Ans: Hello D
Prefer CSE @ SRM KTR
Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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