I’ve started SIPs—what more should I do for long-term goals? | Mint

I am a 35-year-old working woman living in Pune with a 4-year-old daughter. I earn ₹1.2 lakh per month, and my husband is a freelance designer with a fluctuating income. 

We currently live in a rented apartment but plan to buy a house in 3-4 years. I want to ensure my daughter’s higher education is secure, and I also wish to retire comfortably by 60. I’ve started investing in mutual funds via SIPs ( ₹15,000/month), have term insurance, and a ₹5 lakh emergency fund. But I’m unsure if I’m doing enough. 

How should I approach my long-term financial planning with these goals in mind? Also, any tips on how to balance tax savings and wealth creation?

Swati, you’re off to a solid start—with SIPs, term insurance, and an emergency fund, you’ve already laid the foundation for a secure financial future. Here’s how to sharpen your plan:

Buying a house (in 3–4 years)

Since this is a medium-term goal, steer clear of equity-heavy options. Shift focus to low-risk instruments like short-duration debt funds or conservative hybrid funds. Calculate your approximate down payment target (say ₹15–20 lakh) and set up a monthly SIP tailored to reach that in your time frame.

Also read: Are branded apartments worth the premium that you pay?

Child’s higher education (in 15 years)

This is where the power of compounding can work magic. Start a dedicated SIP in a child-specific mutual fund or a diversified equity fund. Even ₹5,000/month growing at ~12% can become ₹25+ lakh in 15 years. You can also explore PPF for partial allocation—it’s safe, tax-free, and builds discipline.

Retirement (in 25 years)

You’re in a sweet spot to grow wealth aggressively. If not already done, increase your SIPs or consider starting a National Pension System (NPS) account. Contributions up to ₹50,000 under Section 80CCD(1B) offer additional tax benefits over the standard 80C limit.

Handling irregular income

Since your husband’s income varies, use your fixed salary to cover essentials. His income can help build a liquidity buffer or go into flexible options like gold ETFs or hybrid funds. Keep separate accounts for core and surplus income.

Tax + wealth creation strategy

Max out Section 80C (via ELSS, PPF, insurance premiums)

Use NPS for added tax breaks

Get comprehensive health insurance under Section 80D

Final word

You’re doing well, but your SIPs might need a top-up as your goals are substantial. As income grows, aim to invest at least 30% of your monthly income, split across different goals. And remember, money is a tool to build a life of choices—plan intentionally, and revisit your strategy every year.

Also read: Got a salary hike? Here’s how a step-up SIP mutual fund strategy can help you save smarter