Mutual Funds

Your Financial Plan

Suresh Parthasarathy | Updated on January 23, 2018 Published on October 25, 2015

I am 37 and self-employed. My wife, 36, assists me in my business. We have a three-year-old son and two-month-old daughter. I plan to quit doing business by 60. Please suggest an investment plan for me. I have health insurance for ₹3 lakh.


With your current surplus you can comfortably reach your goals. But if revenue from your business declines it will make it difficult for you to meet financial goals.

Son’s education: The present value of ₹10 lakh, required for your son’s education, will be ₹29.5 lakh, if inflated at 7 per cent. To reach the target you must invest ₹5,230 monthly for the next 16 years. For his post-graduation, the present value of the sum required is ₹1.93 crore. To reach this target, you must invest ₹20,100 every month and the portfolio should earn a return of 11.8 per cent. Allocate about 60 per cent of the portfolio to equity mutual fund and 40 per cent to debt instruments. For your daughter’s graduation, you need ₹33.8 lakh, if the sum required is inflated at 7 per cent. You need to save ₹4,600 monthly for the next 18 years and for post-graduation you need ₹2.21 crore. Invest ₹18,000 every month till the goal is reached. If you reach the goal in advance, shift the entire corpus to debt instruments.

Marriage: Since you will retire earlier than the goal, accumulate the needed funds before you retire. To meet expenses of ₹1.62 crore, invest ₹13,000 for the next 23 years.

Retirement: You need ₹4.6 crore for monthly expenses. If you redeploy the fixed deposits in a portfolio that delivers 11.8 per cent it will be ₹3.9 crore by the time you retire. To meet the shortfall, you must save ₹5,900 every month. Increase your health insurance by ₹5 lakh and buy a term cover for ₹1.5 crore.

The writer is a financial planner and founder, Send your queries to

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