Computer Science Student: MAIT or USICT for Placements?

Ans: You have Rs 15 lakhs as your corpus and intend to withdraw Rs 10,000 per month. Your NPS fund is generating a return of 15%. Let us analyse if this plan is sustainable.

SWP in NPS
The NPS provides flexibility in managing your corpus post-retirement. However, it has specific withdrawal rules:

You can withdraw up to 60% of the total corpus as a lump sum.
The remaining 40% must be used for annuity purchase.
If this withdrawal is planned pre-retirement, restrictions may apply.
Can You Sustain Rs 10,000 Withdrawal Monthly?
1. Initial Assessment
Rs 10,000 monthly equals Rs 1.2 lakhs annually.
This represents an 8% withdrawal rate from your Rs 15 lakhs corpus.
At 15% annual returns, the remaining corpus can grow even after withdrawals.
2. Sustainability of Corpus
High withdrawal rates can deplete the corpus during market downturns.
A withdrawal rate of 4-6% is generally safer for long-term sustainability.
3. Impact of Fluctuating Returns
The current 15% return may not remain consistent.
Lower returns in the future can affect the corpus’s longevity.
Steps to Ensure Sustainable Withdrawals
1. Reallocate Corpus Wisely
Use a mix of equity and debt investments to balance growth and safety.
Allocate funds to equity for growth and debt for stability.
2. Use a Conservative SWP Strategy
Start with a lower withdrawal amount.
Gradually increase withdrawals to match inflation and needs.
3. Monitor Performance Regularly
Review your portfolio performance every six months.
Adjust withdrawal amounts based on returns and market conditions.
Taxation Considerations
Withdrawals from NPS are taxable as per your income tax slab.
Ensure that the tax burden does not reduce your effective monthly income.
Alternatives to Consider
1. Hybrid Mutual Funds
These funds offer a mix of equity and debt for balanced growth.
Use SWP from these funds for steady income and reduced risk.
2. Debt Funds for Stability
Short-term and ultra-short-term debt funds provide regular income.
These funds are ideal for maintaining liquidity and stability.
3. Equity for Long-Term Growth
Retain a portion of your corpus in equity for inflation-beating returns.
Diversify with flexi-cap and large-cap funds for stability.
Final Insights
Withdrawing Rs 10,000 monthly is possible but requires careful planning. A lower withdrawal rate can ensure corpus longevity. Diversify your corpus between equity and debt for optimal growth and stability. Regular reviews and tax-efficient withdrawals can sustain your income needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Your concerns about performance and long-term reliability are valid. Let us address each point carefully to provide clarity.

Recent Performance of Quant Active Fund
Underperformance in the Last Year
Quant Active Fund's underperformance could be due to market corrections. Sectoral biases also play a role. Adani stock exposure adds concentrated risk, which can cause volatility.

Risk of Concentration in Adani Stocks
High exposure to a single group is risky. Diversification reduces such risks, ensuring consistent returns over time.

Is Quant AMC Reliable for the Long Term?
Track Record
Quant AMC has shown consistent growth over recent years. However, it uses aggressive strategies, which can increase risks in volatile markets.

Management Style
The fund follows a dynamic management approach. While innovative, this style might not suit every investor.

Sustainability
Quant AMC's smaller asset size compared to other AMCs raises questions about its long-term stability.

Should You Continue with Quant Active Fund?
Assess Alignment with Goals
Evaluate if the fund aligns with your financial goals. The fund’s risk-reward profile should match your risk tolerance.

Monitor Performance
If underperformance persists over two years, consider alternative funds. Ensure they provide diversification and stability.

Concentration Risk
Examine your overall portfolio exposure. If Adani holdings exceed your comfort level, reconsider this fund.

Better Alternatives to Your Current Fund
Actively Managed Funds for Stability
Switching to an actively managed diversified equity fund may reduce sectoral risk. These funds use a well-diversified strategy across sectors.

Flexicap Funds
Flexicap funds dynamically allocate across market capitalisations. They balance risk and reward effectively.

Large & Midcap Funds
These funds offer a blend of stability and growth. Their moderate risk suits investors with medium-term goals.

Disadvantages of Index Funds
No Protection in Falling Markets
Index funds replicate market movements. In downturns, they cannot protect against losses.

No Outperformance
Index funds aim to match, not outperform, market benchmarks. Active funds can exceed benchmarks with skilled management.

Benefits of Regular Plans over Direct Plans
Guidance from a Certified Financial Planner
Certified Financial Planners (CFPs) provide strategic advice. They tailor investments based on your goals and risk tolerance.

Periodic Portfolio Review
MFDs associated with regular plans review your portfolio. They adjust allocations based on market conditions.

Streamlined Investment Process
Investing through regular plans ensures simpler management of your investments. This support justifies the slightly higher expense ratio.

Tax Implications of Switching Funds
Equity Mutual Funds
LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%. Assess tax implications before switching.

Avoid Frequent Switching
Frequent fund switching can increase tax liabilities. Review funds every six months to ensure long-term alignment.

Final Insights
Your concerns about Quant Active Fund are valid. The fund’s high concentration in Adani stocks increases risk. Quant AMC, while innovative, might not suit conservative investors. Consider alternatives like flexicap or large & midcap funds for stability. Shift from direct plans to regular plans for expert guidance and periodic reviews. Ensure your portfolio matches your goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You are actively investing, which is an excellent habit. However, managing too many funds can dilute returns and complicate tracking. Here's a detailed evaluation of your portfolio and suggestions for improvement.

Observations About Your Current Investments
Quant Funds’ Performance: Quant mutual funds have been volatile recently. Market phases can impact returns in the short term. However, their active management style often delivers strong long-term results. Reviewing their performance regularly is key.

Over-Diversification: Your portfolio has too many mutual funds, leading to overlapping investments. This makes tracking performance challenging and reduces overall returns. Consolidation is advisable.

Direct Mutual Funds: While direct plans have lower expense ratios, they require regular monitoring. If you lack time for constant tracking, investing through a Certified Financial Planner (CFP) can be beneficial.

Stock Investments: Your stocks are spread across sectors. While some are strong companies, direct stock investments demand active monitoring and deep analysis. Diversifying further into mutual funds might be better aligned with your long-term goals.

Tax-Saving Funds (ELSS): You have three ELSS funds. This creates unnecessary duplication. A single, well-performing ELSS fund is sufficient for tax-saving needs.

Goal Alignment: Your goal is 10 years. For this horizon, equity-heavy investments are ideal, but they must be consolidated for better returns.

Key Recommendations
1. Consolidate Your Mutual Funds
Having too many funds spreads your investments thinly. Instead, focus on 5–7 funds across categories. This will provide diversification without duplication.

Suggested allocation categories:

Large-Cap: One fund to provide stability and steady returns.
Flexi-Cap: One or two funds for flexibility in market capitalization.
Mid-Cap and Small-Cap: Two funds to capitalise on growth potential.
ELSS: One fund for tax-saving benefits.
Consolidation will reduce overlaps and improve overall efficiency.

2. Retain or Exit Quant Funds?
You can retain Quant Small Cap and Quant Flexi Cap if their long-term fundamentals are strong. Exit from others if performance consistency or fund overlap is an issue. Diversify with funds from other AMCs for better balance.

3. Reduce Stock Exposure
Direct stock investments can be risky without regular tracking. Consolidate your stocks and invest the proceeds into diversified mutual funds. This will reduce risk and improve your portfolio’s stability.

4. Monitor Fund Performance
Review mutual fund performance at least annually. Use metrics like returns, expense ratios, fund manager track record, and consistency in delivering returns.

5. Opt for Professional Guidance
Consider investing in regular funds through a CFP. They can provide personalised strategies, regular reviews, and rebalance your portfolio as needed.

Action Plan for Portfolio Restructuring
Step 1: Exit and Consolidate
Exit from underperforming or duplicate funds.
Retain well-performing funds across categories.
Choose funds with strong track records and low volatility.
Step 2: Suggested Fund Allocation
Allocate Rs 40,000 monthly across consolidated categories:

Large-Cap Fund: 25% allocation for stability.
Flexi-Cap Fund: 25% allocation for market cap flexibility.
Mid-Cap Fund: 20% allocation for growth potential.
Small-Cap Fund: 20% allocation for higher returns.
ELSS Fund: 10% allocation for tax-saving needs.
Step 3: Consolidate Stocks
Exit some stocks and reinvest the amount in mutual funds. Focus on reducing sector concentration.

Step 4: Regular Reviews
Review your portfolio semi-annually. Assess market conditions and align your portfolio with your goals.

Disadvantages of Index Funds and Direct Plans
Index Funds
No Active Management: Index funds lack the ability to outperform markets.
Market Dependent: They perform only as well as the index, with no defensive strategy during downturns.
Direct Plans
Higher Effort: Direct plans demand continuous monitoring.
Lack of Guidance: Regular plans via a CFP provide tailored advice, which direct plans do not.
Tax Implications
Keep in mind the new capital gains tax rules:

Equity Funds: LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.
Debt Funds: Gains are taxed as per your income slab.
Consider tax-efficient withdrawals when restructuring your portfolio.

Final Insights
You are on the right track by actively investing for your goals. However, managing fewer, well-performing funds can simplify your journey. Consolidating your portfolio will improve returns, reduce redundancy, and make monitoring easier.

Focus on aligning your investments with your 10-year goal. Use this opportunity to balance risk and returns effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You have an impressive financial setup and clear retirement goals. Being debt-free, with a house fully paid off, strengthens your financial independence. Below, I provide a 360-degree analysis to ensure your current strategy aligns with your retirement goals.

Key Strengths in Your Financial Portfolio
Debt-Free Status: This ensures no liabilities and a focus on wealth creation.

Disciplined SIP Contributions: Rs 2.5 lakhs monthly SIP demonstrates disciplined investing.

Diversified Assets: Investments in equity, debt, and EPF balance enhance portfolio stability.

Defined Retirement Corpus Target: Rs 10 crores target provides clarity in financial planning.

Income Requirement After Retirement
Current Monthly Expense: Rs 2 lakhs. Assuming a 6% inflation rate, expenses will double in 12 years.

Target Monthly Income: You will need around Rs 4-5 lakhs per month post-retirement to maintain your lifestyle.

Retirement Corpus Utilisation: A mix of equity and debt can ensure regular withdrawals while preserving capital.

Will You Reach Your Rs 10 Crores Target?
Your existing portfolio of Rs 1.44 crores (EPF, FD, and mutual funds) is a strong base.

With Rs 2.5 lakhs monthly SIP, and 6-10% annual returns, reaching Rs 10 crores by 55 is feasible.

Monitor your investments regularly to ensure they are on track.

Portfolio Optimisation for Better Returns
1. Consolidate Overlapping Mutual Funds
Too many funds like Axis, SBI, and DSP midcaps can lead to portfolio duplication.
Retain only the top-performing funds to avoid unnecessary diversification.
Focus on large-cap, mid-cap, and flexi-cap funds for a balanced equity portfolio.
2. Reallocate Fixed Deposits
FDs yield low post-tax returns and may not beat inflation.
Gradually shift FD investments to debt mutual funds or conservative hybrid funds.
3. Increase Equity Allocation
Equity grows wealth over the long term and combats inflation.
Maintain a 60-70% equity allocation in your portfolio pre-retirement.
Suggestions for Lump Sum Investments
1. Dynamic Asset Allocation Funds
These funds adjust automatically between equity and debt based on market conditions.
They provide stability and growth for one-time investments.
2. Flexi-Cap Funds
Flexi-cap funds can invest across market capitalisations for better growth potential.
They ensure diversification and capital appreciation for lump sums.
3. Debt Funds for Short-Term Goals
For safety and stability, consider short-term debt funds or ultra-short-term funds.
These are ideal for funds needed in 1-3 years.
Tax-Efficient Investing
Equity Mutual Funds: LTCG above Rs 1.25 lakh taxed at 12.5%. Plan redemptions accordingly.
Debt Mutual Funds: Gains taxed as per your income tax slab. Monitor impact on post-tax returns.
Use tax-saving instruments like ELSS for further benefits if required.
Optimising Your SIP Portfolio
Your SIP funds already include large-cap, mid-cap, small-cap, and flexi-cap categories.
Consider reducing underperforming or overlapping funds to enhance efficiency.
Add international funds for global diversification, focusing on dollar-denominated growth.
Emergency and Risk Management
1. Emergency Fund
Keep 6-12 months' expenses in liquid or ultra-short-term funds.
This ensures you are prepared for unexpected financial needs.
2. Insurance Coverage
Ensure adequate health insurance coverage for yourself and family.
A term insurance plan can protect your family in case of unforeseen events.
Regular Portfolio Monitoring
Review your portfolio’s performance every six months.
Make adjustments based on market conditions and fund performance.
Seek guidance from an MFD with CFP credentials to align your portfolio with goals.
Final Insights
Your financial foundation is strong, and your Rs 10 crore target is achievable. Consolidate and optimise your portfolio for better returns. Maintain discipline and review investments regularly to ensure long-term success. Focus on inflation-proofing your retirement corpus with a balanced equity-debt mix.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Your portfolio reflects diversity across categories. However, optimisation is needed to align with financial goals. Below is a detailed review:

SIPs in Actively Managed Regular Plans
1. ABSL Frontline Equity (Rs 1000)

Returns: 14.77% since 2014
Assessment: Decent long-term performer in large-cap space. Consider retaining this SIP for stability.
2. Bandhan Flexicap (Rs 2000)

Returns: 13.62% since 2014
Assessment: Performance consistent, but alternatives may offer better opportunities. Explore other flexicap funds with dynamic management.
3. Sundaram Midcap (Rs 1000)

Returns: 18.64% since 2014
Assessment: Impressive returns; retain for potential in midcap growth.
4. Sundaram Large & Midcap (Rs 2000)

Returns: 16.01% since 2014
Assessment: Balanced fund delivering good returns; recommend continuing.
5. ICICI Pru Bluechip (Rs 1000)

Returns: 16.65% since 2014
Assessment: Steady performer in large-cap category. Retain for portfolio stability.
6. Nippon India Smallcap (Rs 1000)

Returns: 33.31% since 2021
Assessment: High returns in a short time; small-cap investments suit higher risk tolerance. Consider continuing if goal aligns.
7. Tata Smallcap (Rs 1000)

Returns: 32.14% since 2021
Assessment: Small-cap volatility is high. Retain only if long-term horizon exceeds 7-10 years.
8. Axis Bluechip (Rs 1000)

Returns: 14.20% since 2021
Assessment: Underperforming in the large-cap category; better options are available.
SIPs in Direct Plans
9. Nippon India Smallcap (Rs 4000)

Returns: 36.09% since 2023
Assessment: Excellent short-term returns. Evaluate if overlapping with your existing small-cap holdings.
10. Quant Smallcap (Rs 8000)

Returns: 29.87% since 2023
Assessment: Volatility typical of small-cap funds; ensure no over-allocation to this segment.
11. Kotak Emerging Equity (Rs 5000)

Returns: 34.68% since 2023
Assessment: Promising returns; align with your risk and time horizon before continuing.
12. ICICI Focused Equity (Rs 2000)

Returns: 33.75% since 2023
Assessment: Focused equity funds bring concentration risks. Consider reducing allocation to balance risk.
13. ICICI Large & Midcap (Rs 2000)

Returns: 29.86% since 2023
Assessment: Diversified strategy suits mid-term goals. Consider holding for stability.
14. Quant Midcap (Rs 4000)

Returns: 23.39% since 2023
Assessment: Reasonable performance in a short period. Retain for midcap exposure.
Key Recommendations
Surrender Direct Funds: Direct plans lack the professional guidance of an MFD or CFP. Transition to regular plans to gain insights, periodic review, and holistic advice.

Consolidate Small-Cap Investments: You hold multiple small-cap funds. Retain 1-2 for high-risk, high-reward potential. Allocate surplus to other categories.

Replace Underperformers: Axis Bluechip and Bandhan Flexicap are candidates for reallocation. Replace them with actively managed funds showing stronger performance.

Ensure Category Allocation: Maintain a balanced allocation between large-cap, midcap, and small-cap funds.

Additional Insights
Tax Efficiency: Ensure tax planning aligns with your goals. For equity funds, LTCG above Rs 1.25 lakh attracts 12.5% tax. STCG is taxed at 20%.

Reassess Goals: Match fund selection to financial milestones like retirement, children’s education, or asset creation.

Review Regularly: A portfolio review every six months ensures alignment with financial goals and market conditions.

Final Insights
Your portfolio is diversified but needs fine-tuning. Transition to regular funds for professional guidance. Consolidate small-cap holdings to reduce overlap. Focus on long-term wealth creation through a balanced strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Investing Rs. 40,000 per month in mutual funds for 20 years is a solid financial decision. With this approach, you can achieve significant wealth accumulation and meet long-term goals. Below, I’ve structured a professional guide with insightful recommendations for a diversified portfolio of mutual funds.

Asset Allocation Strategy for Long-Term Growth
A 20-year horizon allows you to take calculated risks for higher returns. Here's an allocation strategy to consider:

Large-Cap Funds: Stability and consistent growth
Mid-Cap Funds: Balanced risk and return potential
Small-Cap Funds: High-growth opportunities over the long term
Hybrid Funds: Cushion during market volatility
This combination ensures balanced growth with reduced risks.

Categories to Include in Your Portfolio
Here are recommended categories with explanations:

Large-Cap Equity Funds (Rs. 10,000 Monthly)
Focus on investing in funds with a history of stability and steady returns.
Large-cap funds invest in established companies with consistent growth.
Suitable for risk-averse investors aiming for dependable performance.
Three-line space.

Mid-Cap Equity Funds (Rs. 10,000 Monthly)
Mid-cap funds provide a good mix of growth and moderate risk.
These funds invest in companies with strong growth potential.
Ideal for investors with a medium-to-high-risk appetite.
Three-line space.

Small-Cap Equity Funds (Rs. 8,000 Monthly)
Small-cap funds are volatile but offer the highest long-term returns.
Investing in small-cap funds requires patience to handle market swings.
These funds are best suited for wealth creation over 15–20 years.
Three-line space.

Hybrid Funds (Rs. 7,000 Monthly)
Hybrid funds diversify across equity and debt for balanced growth.
They provide stability during market downturns.
Suitable for achieving consistent performance with controlled risk.
Three-line space.

Sectoral or Thematic Funds (Rs. 5,000 Monthly)
Sectoral funds invest in specific sectors like technology or healthcare.
Thematic funds follow emerging market trends, enhancing returns.
Only allocate if you are comfortable with higher risk.
Why Avoid Index Funds?
Index funds mimic the market and lack active management. Here's why they might not suit your portfolio:

Limited Upside Potential: They merely track benchmarks without seeking higher returns.
No Downside Protection: Lack of proactive management can lead to higher losses in downturns.
Higher Taxation Impact: Active funds offer better post-tax returns with consistent rebalancing.
Instead, actively managed funds deliver better performance, especially in volatile markets.

Direct Plans vs. Regular Plans: Which Is Better?
While direct plans have lower expense ratios, regular plans offer critical advantages:

Expert Guidance: Regular plans through Certified Financial Planners (CFPs) come with professional advice.
Time-Saving: You save time by relying on CFPs for fund selection and rebalancing.
Better Decision-Making: Regular plans ensure informed decisions for long-term growth.
By investing through regular plans with an experienced CFP, you can maximise returns.

Benefits of Your 20-Year Investment Plan
Your Rs. 40,000 monthly investment over 20 years offers significant advantages:

Compounding Power: The longer the investment, the greater the compounding effect.
Financial Independence: Helps achieve life goals like retirement or children’s education.
Inflation Protection: Equity funds outpace inflation over the long term.
Taxation Rules to Keep in Mind
Understanding tax implications ensures better planning:

Equity Funds: Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%. Short-term gains are taxed at 20%.
Debt Funds: Both LTCG and STCG are taxed as per your income tax slab.
Hybrid Funds: Taxation depends on equity allocation within the fund.
Keep track of tax-efficient withdrawal strategies after 20 years.

Important Considerations for Your Portfolio
Rebalance Regularly: Review your portfolio every 6–12 months.
Diversify Smartly: Avoid over-allocation in any single category.
Stay Disciplined: Stick to your plan regardless of market fluctuations.
Consult a CFP: Regular consultation ensures alignment with financial goals.
Final Insights
Your decision to invest Rs. 40,000 monthly reflects strong financial foresight. By diversifying into different fund categories, you can build a solid portfolio for long-term growth. Avoid chasing short-term trends and remain committed to your strategy.

Investing through a Certified Financial Planner ensures tailored advice for your unique needs. Stay consistent, review periodically, and let time work in your favour.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

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

Ans: You have consistently invested Rs 2,000 per month in a flexicap fund since 2014. With an XIRR of 13.6%, this SIP has delivered a strong, inflation-beating return over time. This consistency reflects disciplined investment behaviour. However, it is natural to compare returns with other funds offering better short-term performance.

Let us analyse the situation and guide your next steps.

Strengths of Your Current Investment
Long-Term Investing: Staying invested since 2014 has leveraged the power of compounding.

Steady Returns: The fund has provided a stable 13.6% XIRR over nine years.

Market Phases: The fund has weathered various market cycles, proving its resilience.

Should You Switch to a New Fund?
Switching funds requires careful consideration. A short-term performance comparison alone is not enough.

1. Check Consistency Over Time
Review the 10-year and 15-year performance of your current fund.
Consistent performers in all market cycles are more reliable.
2. Assess Fund's Risk and Style
A high return in another fund may come with higher volatility or risks.
Evaluate the investment style and portfolio diversification of alternatives.
3. Impact of Capital Gains Tax
Selling your current investments may trigger long-term capital gains (LTCG) tax.
LTCG above Rs 1.25 lakh is taxed at 12.5%. Factor this into your decision.
4. Transaction Costs
Consider exit loads or transaction charges if applicable.
Regular switching can erode returns through such costs.
Benefits of Staying Invested
1. Avoid Market Timing
Timing the market by chasing high-return funds can lead to losses.
Patience with a consistent performer usually pays off in the long term.
2. Power of Compounding
Long-term SIPs maximise compounding benefits.
Frequent fund changes interrupt this growth cycle.
When Should You Consider Switching?
If the fund consistently underperforms its benchmark and peers over 5-10 years.
If there are major changes in fund management or strategy.
Alternative Approach Instead of Switching
1. Diversify Across Funds
Start a SIP in another flexicap fund without stopping the existing one.
This ensures better diversification without disrupting current investments.
2. Review Portfolio Overlap
Avoid funds with overlapping portfolios to ensure diversification.
3. Seek Expert Guidance
Invest through an MFD with CFP credentials for personalised fund selection.
Active management ensures funds align with your financial goals.
Disadvantages of Direct Funds
Direct funds do not offer advisory support.
You may miss crucial rebalancing opportunities without professional guidance.
Investing through regular plans with an MFD ensures expert monitoring and timely actions.
Final Insights
Your existing SIP has delivered steady, long-term returns. Do not switch based on short-term fund performance alone. Evaluate long-term consistency and risk before making changes. Consider starting a new SIP in another fund to diversify instead of stopping your current SIP.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello;

Source fund(debt) for STP has to be from the same fund house where your target fund(equity) belongs.

You may select liquid type debt fund for your STP, from risk and liquidity standpoint.

My suggestion would be to select funds from the top quartile in performance and from a big, reputed fund house.

Apply this yardstick to your fund selection.

To ensure neutrality of this forum, specific comments about xyz fund is generally avoided. Hope you appreciate this point.

Since kids are minor you or your spouse may have to be guardian for the minor folio and your KYC will be used to open and operate the same.

In case withdrawal is made before kids attain major status, tax implication will rest with the guardian.

Also after attaining major status fresh KYC of kids is mandatory before further contributions.

I suggest joint holding folios, for eg one folio may have kid as first investor with you as guardian and your spouse as joint/second investor and vice versa.

It may sound tedious but it's a one time thing and in the best interest of kids.

Happy Investing;
X: @mars_invest

Ans: Hi Tanushyam,

Thank you for reaching out. It’s great to hear that your daughter is pursuing her graduation in Psychology and research at Amity University Kolkata.

Pursuing a Master’s and Doctorate from prestigious universities abroad, like UC Berkeley and King’s College London, would provide her with specialized courses in areas like clinical and corporate psychology, along with valuable research opportunities. These institutions also have a higher demand for psychologists, which can lead to faster career progression and global exposure.

While career options in India are growing, studying abroad can offer a broader range of opportunities. She should also consider attending international conferences to build networks and explore internships.

Ultimately, the decision depends on her career goals, preferred work environment, and the opportunities available to her after completing her studies.

I wish her all the best in her academic journey!

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