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Ans: Hi Saket,

Your portfolio is a mix of investments across MFs, PMS and PPF.
Assuming PMS is all equity, the asset allocation reflects approximately an 80:20 ratio in Equity:Debt respectively, which seems fine.
As your objectives or goals are not available, it would be difficult to indicate if they suit your profile.

Most of the MF schemes mentioned are fine with a good track record. The exception is the Business Cycle scheme - this is a new scheme and being sectoral it will attract very high risk, its approximately 10% of your portfolio value so continue if you understand the risk.
Alternately you can consider a Flexi-cap or Multi-cap MF scheme that are well diversified and for a 7+ years of time horizon.

PMS services - if your experience with the PMS services are good and they meet your expectations for returns, then do continue.

PPF - plan to utilize it as a tax efficient instrument to withdraw funds at the time of retirement. Continue to contribute max possible and complete lock-in period of 15 years and keep extending the account with contributions. Over the next 10-15 years you can accumulate a good corpus which will be completely tax free for withdrawal.

An observation/suggestion as its not indicated - As you are freelancer, suggest emergency funds - please plan to have at least 6-9 months expenses in an investment which has high liquidity and safety e.g. FDs. In extreme eventualities like the pandemic or a personal crisis, this fund can support the immediate needs.

As you are going to be moving towards your retirement in a decade or so, I recommend you contact a Certified Financial Planner who can add value to your portfolio and provide a personalized evaluation and guidance taking into consideration your family profile, goals and requirement of the future while assessing risk and tax efficiency.

Regards
Janak Patel
Certified Financial Planner.

Ans: Hi Neeta / Raghav,

At the high level the below should help you.

1. Cost of acquisition can include the purchase price and the cost of improvement, so the upkeep expenses to maintain the property cannot be consider, but if you made any form of addition/alterations to the property then you can include it.
The interest paid on loan is eligible for tax benefits, it cannot be included in the cost of acquisition.

2. Old Rule - using the CII for calculations indicate Capital gains of Rs130 lacs, the capital gains tax (20% on difference after indexation) works out to be approximately Rs26 lacs. Note exact dates of purchase/sale will determine the CII values to be used, assumed FY2002-3 and FY2024-25 for now.
New Rule (2024 budget) - Capital gains = difference of sale and cost price i.e. Rs179 lacs, tax of 12.5% on it is approximately Rs22 lacs.

Note - you can add/reduce the cost/sale price with expense incurred in transacting the property e.g. brokerage.

Options to save tax on the Capital gains amount
1. Reinvest in another residential property within 1 year prior and 2 years after sale date or construct within 3 years after sale date.
2. Invest in NHAI bonds - has lock-in period and the interest earned is taxable.

Please contact a CFP or a Tax consultant for further guidance.

Regards
Janak Patel
Certified Financial Planner.

Ans: Same query replied to Neeraj, please refer the same.

Ans: Hi Neeraj,

Mutual Funds are a good option for investment. The investment horizon/timeline is very important when you consider equity mutual funds, they need to be invested for the long period (7+ years).

You have only recently started in June 2024, so keeping patience with your investment is important. You can track the progress of your investment but don't get influenced by day to day fluctuation in its NAV. Decisions should be taken based on many factors but do consider 1-2 years duration to see if fund performance is steady, improving or below par compared to your expectation and its peers and the market.

Now coming to the funds you have provided - Quant Large and Midcap and Quant Flexicap are good funds and I think you should be patient. Note - both are actively managed funds and you can expected to see fluctuations in the short term. Stay invested in these 2 funds as they are well diversified and long term prospects look good.
Quant Infrastructure fund is a Sectoral fund and the fluctuations will be high. If your risk profile is very high, then you can continue. There will be a period of time when the sector loses favor in the market and thus the returns will be impacted and during good times it will provide good returns.
Alternately if you decide to exit then include a fund from another fund house which is well diversified and aligns to your risk profile. Some good options to consider - an Index fund based on Nifty 500 (passive) or a multicap fund (active) - to get a a well diversified exposure to Large-Mid-Small cap.
Note- Redemption at this time may attract exit load apart from tax implications for short term.

Regards
Janak Patel
Certified Financial Planner.

Ans: Hi,

There are many Mutual Fund schemes that are doing well depending on what factors you consider to evaluate them for.
So rather than look for the best (which can change over time and other conditions/factors), I recommend you look for consistency in a MF scheme.

Consistency will help remove the bias and fear of being/not being the best and provide a more solid approach towards investing and staying invested in the MF scheme.

Also when deciding on the MF scheme, do consider the investment goal, time duration of the investment and risk you are willing to associate to your investment. These can help you narrow down on the MF category/scheme.

Regards
Janak Patel
Certified Financial Planner.

Ans: Hi,

Glad to hear you want to invest in Mutual Funds. There are many Mutual Fund schemes and depending in various factors you need to decide which is the correct scheme suitable for you. For this we need to know the goal for which you are investing which will provide more insight of the duration and amount of risk that can be associated.
You mentioned Risk: Aggressive - but the duration of investment is equally if not more important in decision making.

So if I were to assume you have a timeline of 7-10 years for your investment, you can consider Equity based Schemes, if its 4-7 years then a hybrid (Equity+Debt) scheme may be suitable and if its less than 4 years you can consider Debt category.

Considering you aggressive risk profile and assuming you are going to consider investments for more than 7 years, I recommend you invest in a Multicap scheme (70%) and a Large cap scheme (30%). Also ensure you invest your 10 lakhs amount spread across 6-10 months instead of a single investment.

Regards
Janak Patel
Certified Financial Planner.

Ans: Hi Vivek,

Loan is provided at an specified interest rate and for a specified tenure (years/months) and these depend on the type of Loan you have taken e.g. Personal Loan, Home Loan etc. This determines the monthly installment that is required to be paid by you for the tenure agreed.
As you have mentioned Principal amount is 65K and now the Lender is asking to pay 1 Lac - this must include the interest due on the principal amount.
As you have not mentioned type of loan, the interest rate and the duration of this loan, its difficult to understand the terms of the loan and whether you have defaulted on it. Loan payments usually take into account the income and repayment capacity of individual.
Suggest you approach the Lender and discuss the terms and agree on a plan for repayment which is acceptable for both.
Please understand that if you default on a loan payment, the credit score gets impacted.

Regards
Janak Patel
Certified Financial Planner.