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30-Year-Old Investor Seeks Advice on Portfolio for 18-20% CAGR

Samraat

Samraat Jadhav  |2134 Answers  |Ask -

Stock Market Expert - Answered on Jul 15, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
SANTANU Question by SANTANU on Jul 14, 2024Hindi
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I am 30 , currently investing 5k in Parag Parikh flexicap fund, 5k in sbi long term equity fund, 10k in quant midcap and 7k in quant small cap fund. I want maximum return from my investment in long term that's why 70% of my portfolio is in small and midcap fund. Will this be good for a long term CAGR of 18-20% ?

Ans: if you are a long term investor say for 15-20yrs then you will make wealth, just stay invested and disciplined.
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

Ramalingam Kalirajan  |7408 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jun 09, 2024Hindi
Money
I am 29. I am investing 10k in ICICI pru Flexi cap, 5k in Parag Parikh Flexi cap, 5k in Nippon India Small Cap, 5k in SBI Nifty Midcap 150 Index fund, 2.5k in Quant Midcap, 2.5k in Nippon Multi cap. Will this be good for a long term investment? Say around 20 years.
Ans: Firstly, let me appreciate your initiative and discipline in investing. At 29, you are already taking significant steps towards securing your financial future. Your current SIPs total Rs. 30,000 per month across various funds, and you’re wisely looking at a long-term horizon of 20 years. Let’s dive into your investment strategy and evaluate how to optimize it for achieving your goals.

Review of Current Investments
Your portfolio is diversified across flexi-cap, small-cap, mid-cap, and multi-cap funds, including an index fund. This mix is good for spreading risk and capitalizing on growth opportunities in different market segments. Each type of fund has its characteristics, benefits, and risks.

Assessing the Current Portfolio
1. Portfolio Diversification:

Your portfolio's diversification is commendable. You have invested in various fund categories, which is crucial for risk management.

2. Allocation Breakdown:

Flexi-cap Funds: 50% allocation.
Small-cap Funds: 17% allocation.
Mid-cap Funds: 20% allocation.
Multi-cap Funds: 13% allocation.
3. Risk and Return Balance:

This allocation provides a balance between high growth potential (small and mid-cap funds) and stability (flexi-cap and multi-cap funds).

Enhancing Your Investment Strategy
1. Increase SIP Amount Periodically:

Consider increasing your SIP amount by 10% annually. This will significantly enhance your corpus over the long term. For example, increasing your SIPs yearly can amplify your investment growth, thanks to the power of compounding.

2. Regular Portfolio Review:

Review your portfolio's performance at least once a year. This ensures you stay aligned with your financial goals and make necessary adjustments.

3. Rebalancing:

Rebalancing helps maintain your desired asset allocation. It involves selling some investments that have performed well and buying more of those that haven’t, to maintain a target allocation.

Power of Compounding
Compounding is your best friend in long-term investing. The longer you stay invested, the more your money works for you. Reinvesting your returns leads to exponential growth.

1. Long-Term Growth:

Compounding allows your investments to grow faster as you earn returns on both your initial investment and the accumulated returns over time.

2. Patience Pays:

The key to benefiting from compounding is patience. Stay invested for the long haul and avoid the temptation to withdraw funds prematurely.

Advantages of Mutual Funds
1. Professional Management:

Mutual funds are managed by experienced fund managers who make informed investment decisions on your behalf.

2. Diversification:

They offer diversification across various sectors and asset classes, reducing the risk of significant losses.

3. Liquidity:

Mutual funds are highly liquid, meaning you can redeem your investments relatively easily when needed.

4. Flexibility:

There are various types of mutual funds to suit different risk appetites and investment goals.

Evaluating Fund Categories
1. Flexi-Cap Funds:

These funds invest in companies of all sizes and offer flexibility and diversification. They adjust their portfolio mix based on market conditions, aiming for optimal returns.

2. Small-Cap Funds:

Small-cap funds invest in smaller companies with high growth potential but come with higher volatility. They can offer substantial returns over the long term if you can withstand short-term market fluctuations.

3. Mid-Cap Funds:

Mid-cap funds invest in medium-sized companies with strong growth prospects. They strike a balance between the stability of large-caps and the high growth potential of small-caps.

4. Multi-Cap Funds:

Multi-cap funds invest across large-cap, mid-cap, and small-cap stocks. They provide a balanced approach, reducing risk while aiming for growth.

5. Index Funds:

Index funds aim to replicate the performance of a specific market index. They offer lower expense ratios but might not outperform the market. Actively managed funds, like those you have, seek to outperform market indices through active stock selection.

Risks and Mitigation
Investing in mutual funds involves certain risks, but these can be managed:

1. Market Risk:

Diversify across various asset classes and sectors to spread risk.

2. Interest Rate Risk:

Maintain a mix of equity and debt funds to mitigate the impact of interest rate fluctuations.

3. Credit Risk:

Invest in funds with high credit ratings to minimize default risk.

4. Inflation Risk:

Equity funds can potentially outpace inflation, preserving the purchasing power of your investments.

Tax Implications
1. Long-Term Capital Gains (LTCG):

Gains from equity funds held for more than one year are taxed at 10% for amounts exceeding Rs. 1 lakh annually.

2. Short-Term Capital Gains (STCG):

Gains from equity funds held for less than one year are taxed at 15%.

3. Tax-Saving Funds:

Consider investing in Equity Linked Savings Schemes (ELSS) for tax benefits under Section 80C.

Role of a Certified Financial Planner
A Certified Financial Planner (CFP) can provide valuable guidance:

1. Personalized Advice:

CFPs offer tailored advice based on your unique financial situation and goals.

2. Portfolio Management:

They help monitor and rebalance your portfolio to ensure it aligns with your objectives.

3. Tax Planning:

CFPs offer strategies to optimize your tax liabilities, maximizing your investment returns.

Final Insights
Your investment strategy is on the right track. With consistent SIPs, regular reviews, and periodic rebalancing, you can achieve your financial goals. Here are some key takeaways:

1. Increase SIPs Annually:

Boost your investment amount by 10% each year to leverage the power of compounding.

2. Monitor Performance:

Keep an eye on your portfolio’s performance and make adjustments as needed.

3. Diversify:

Continue diversifying across various fund categories to manage risk and maximize returns.

4. Stay Informed:

Keep yourself updated on market trends and fund performance to make informed decisions.

5. Seek Professional Guidance:

Consider consulting a Certified Financial Planner for personalized advice and ongoing portfolio management.

Your commitment to long-term investing is commendable. Stay disciplined, be patient, and let the power of compounding work its magic. You are well on your way to achieving your financial aspirations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7408 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 13, 2024

Asked by Anonymous - Jun 12, 2024Hindi
Money
I am 29. I am investing 10k in ICICI pru Flexi cap, 5k in Parag Parikh Flexi cap, 5k in Nippon India Small Cap, 5k in SBI Nifty Midcap 150 Index fund, 2.5k in Quant Midcap, 2.5k in Nippon Multi cap. Will this be good for a long term investment? Say around 20 years.
Ans: Evaluating Your Investment Portfolio for Long-Term Growth

Firstly, I appreciate your proactive approach towards investing at a young age. At 29, you have a significant time horizon to build a robust portfolio for long-term growth. Your current investments reflect a diversified approach, which is essential for managing risk and maximizing returns.

Let's dive into an in-depth evaluation of your investment choices and see how they align with your 20-year investment horizon.

Portfolio Breakdown
ICICI Prudential Flexi Cap Fund: Investing Rs 10,000 per month in this fund shows your inclination towards diversified equity exposure. Flexi cap funds are versatile as they invest across large-cap, mid-cap, and small-cap stocks, allowing the fund manager flexibility to capitalize on market opportunities.

Parag Parikh Flexi Cap Fund: Allocating Rs 5,000 per month here adds another layer of diversification. This fund is known for its prudent stock-picking and global exposure, which can hedge against domestic market volatility.

Nippon India Small Cap Fund: With Rs 5,000 per month in this fund, you are targeting high growth potential. Small cap funds can deliver significant returns over the long term, but they come with higher risk and volatility.

SBI Nifty Midcap 150 Index Fund: Investing Rs 5,000 per month in this index fund exposes you to the mid-cap segment. While index funds are generally low-cost, it's crucial to balance them with actively managed funds for optimized performance, especially over a long-term horizon.

Quant Midcap Fund: Allocating Rs 2,500 per month here focuses on the mid-cap segment, providing growth potential with manageable risk. Actively managed mid-cap funds can often outperform their index counterparts through strategic stock selection.

Nippon Multi Cap Fund: Investing Rs 2,500 per month in this fund adds further diversification. Multi-cap funds invest across all market capitalizations, balancing risk and return effectively.

Analytical Review of Your Investment Choices
Diversification: Your portfolio is well-diversified across different market capitalizations and fund types. This helps spread risk and captures growth from various segments of the market.

Flexi Cap Funds: Both ICICI Prudential Flexi Cap and Parag Parikh Flexi Cap funds offer broad diversification. They provide the fund manager with the flexibility to switch between different market caps based on market conditions.

Small and Mid Cap Exposure: Your investment in Nippon India Small Cap and Quant Midcap funds targets the potential for higher returns. However, small and mid-cap stocks can be volatile, so these should be monitored and balanced as needed.

Index Fund Exposure: While SBI Nifty Midcap 150 Index Fund provides exposure to mid-cap stocks, actively managed funds can offer better returns due to strategic management. Over 20 years, actively managed funds can adapt to market changes more effectively.

Benefits of Actively Managed Funds Over Index Funds
Active Management Advantage: Actively managed funds have the potential to outperform index funds through tactical asset allocation and stock selection. Fund managers leverage their expertise to identify undervalued stocks and market trends.

Flexibility: Unlike index funds, actively managed funds are not bound to a specific index. They can shift investments to better-performing sectors or stocks, potentially enhancing returns.

Risk Management: Actively managed funds can employ risk management strategies, such as adjusting sector allocations or increasing cash holdings during market downturns, to protect the portfolio.

Assessing Your Long-Term Investment Strategy
Compounding Effect: Investing consistently over 20 years will allow your investments to benefit from compounding. The longer you stay invested, the greater the compounding effect, leading to significant wealth accumulation.

Rebalancing: Regularly review and rebalance your portfolio to ensure it aligns with your risk tolerance and financial goals. Rebalancing helps maintain the desired asset allocation and mitigates risk.

Economic Cycles: Over 20 years, you will experience various economic cycles. Actively managed funds can adjust their strategies to navigate these cycles, potentially offering better risk-adjusted returns.

Optimizing Your Portfolio for Better Returns
Consider Large Cap Funds: Adding a large cap fund can provide stability to your portfolio. Large cap stocks are typically more stable and less volatile, offering steady growth over the long term.

Evaluate Fund Performance: Regularly assess the performance of your chosen funds. If any fund consistently underperforms its benchmark or peers, consider replacing it with a better-performing fund.

Tax Efficiency: Understand the tax implications of your investments. Long-term capital gains (LTCG) from equity funds are taxed at 10% on gains exceeding Rs 1 lakh in a financial year. Efficient tax planning can enhance your net returns.

Financial Planning and Retirement Goals
Setting Clear Goals: Define your financial goals clearly. Whether it's retirement, buying a house, or children's education, having specific goals will help tailor your investment strategy accordingly.

Emergency Fund: Maintain an emergency fund equivalent to at least six months of your expenses. This ensures you don’t have to dip into your investments during emergencies.

Insurance Coverage: Ensure you have adequate health and life insurance coverage. This protects your family and financial goals in case of unforeseen events.

Enhancing Financial Knowledge
Continuous Learning: Stay updated with financial news, investment trends, and market developments. Continuous learning helps make informed decisions and adapt to changing market conditions.

Consulting a Certified Financial Planner: For personalized advice, consider consulting a Certified Financial Planner (CFP). A CFP can provide a comprehensive financial plan tailored to your unique situation and goals.

Final Insights
Your commitment to investing Rs 30,000 monthly at such a young age is impressive. Diversifying your investments across flexi cap, small cap, mid cap, and multi cap funds shows a strategic approach. However, consider the advantages of actively managed funds over index funds for potentially higher returns and better risk management. Regularly review and rebalance your portfolio, stay informed about market trends, and consider professional financial advice to optimize your investment strategy for the long term.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7408 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

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I am 25. I am investing 12.5k in HDFC Nifty 50 index fund, 10k in Parag Parikh Flexi cap, 10k in Quant Small Cap, 12.5k in ICICI nasdaq 100 index fund. Will this be good for a long term investment? What should I change in my portfolio? By what % should I increase my investment?
Ans: Your investment journey at 25 is commendable. Let's evaluate your portfolio and suggest improvements.

Current Portfolio Assessment
Investments:

Rs 12.5k in HDFC Nifty 50 Index Fund
Rs 10k in Parag Parikh Flexi Cap
Rs 10k in Quant Small Cap
Rs 12.5k in ICICI Nasdaq 100 Index Fund
Benefits of Actively Managed Funds
Limited Returns in Index Funds:

Index funds track the market. They offer average returns.
They lack flexibility. They can’t outperform the market.
Advantages of Actively Managed Funds:

Active funds offer better returns. Fund managers make strategic decisions.
They adapt to market changes. This improves potential gains.
Recommendations for Portfolio Adjustment
Reduce Index Fund Allocation:

Decrease investment in index funds. Focus more on actively managed funds.
Diversify Portfolio:

Add more diversified and balanced funds. This reduces risk and improves stability.
Focus on Long-Term Growth:

Invest in funds with a strong track record. This ensures consistent growth.
Suggested Portfolio Allocation
Equity Funds:

Increase investment in equity funds. This enhances growth potential.
Balanced Funds:

Allocate a portion to balanced funds. They offer a mix of equity and debt.
Diversified Funds:

Add diversified funds. They spread risk across sectors.
Increasing Investment Percentage
Annual Increment:

Increase investment by 10% annually. This helps keep pace with inflation and growth.
Monthly Contributions:

Review your financial status regularly. Increase contributions as your income grows.
Detailed Financial Plan
Investment Review:

Monitor your investments quarterly. Adjust based on performance and goals.
Professional Guidance:

Seek advice from a Certified Financial Planner. This ensures optimal investment strategies.
Long-Term Perspective:

Stay focused on long-term goals. Avoid frequent changes based on market fluctuations.
Disadvantages of Direct Funds
Complex Management:

Direct funds require constant monitoring. This can be time-consuming.
Professional Assistance:

Regular funds offer expert management. This reduces the burden on investors.
Convenience and Expertise:

Investing through a Certified Financial Planner ensures professional oversight. This improves returns and reduces risks.
Final Insights
Disciplined Investing: Consistent and strategic investments are key.
Professional Advice: Certified Financial Planners offer valuable guidance.
Future Planning: Always plan for future needs and adjust your investments accordingly.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7408 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 04, 2024

Asked by Anonymous - Nov 04, 2024Hindi
Money
Hello, I plan to generate wealth on longterm for about 5-8 years with expectation of 18% CAGR from Equity mutual funds and here is my portfolio allocation. Can you please review and advise if this achievable : Large Cap fund : 40%, Mid Cap : 35%, Small Cap : 25%. Large Cap : Mirae Asset Large Cap (49%), Motilal Oswal Mid cp (9%), Kotak Emerging Equity Fund (26%), Nippon India Small Cap fund (25%). Investment objective is for retirement and I'm 40 years old at this moment. Thanks.
Ans: Your equity mutual fund portfolio allocation is structured with a mix of large-cap, mid-cap, and small-cap funds, each serving a unique purpose. This setup aligns well for a 5-8 year investment period, as larger caps offer stability while mid and small caps deliver higher growth potential. However, an 18% CAGR target requires careful attention to fund selection, market cycles, and risk management. Let’s explore if your goals are feasible and examine key areas for potential improvement.

1. Portfolio Allocation Evaluation

Large Cap Allocation (40%)
Large caps provide stability with moderate growth potential. Your allocation here should help minimise volatility while maintaining steady growth. Generally, large-cap funds offer 10-12% annualised returns over the long term, making them a stabilising force in your portfolio.

However, expecting an 18% CAGR from the entire portfolio may be ambitious given the conservative growth nature of large caps.

Mid Cap Allocation (35%)
Mid-cap funds bridge the gap between the stability of large caps and the high growth potential of small caps. They often deliver returns around 14-16% over extended periods, though with higher volatility. Your 35% allocation reflects a balanced approach, yet returns depend heavily on market conditions, fund performance, and economic cycles. With your chosen funds, consistent monitoring and periodic rebalancing are essential.

Small Cap Allocation (25%)
Small-cap funds can indeed offer exceptional growth, averaging around 16-20% over longer durations. This allocation boosts the overall growth potential but also brings in considerable volatility. If market conditions are favourable, this segment could contribute significantly to your 18% CAGR goal. However, small-cap returns are highly cyclical, and down markets can impact this portion significantly.

2. Expectations for an 18% CAGR

Your goal of an 18% CAGR is possible but may be challenging. Historical data shows equity mutual funds typically deliver 12-14% CAGR over 5-8 years, with some portfolios achieving 15-18% during particularly favourable market cycles.

Managing Expectations
While a high return is possible, setting a target slightly below 18% may offer a more realistic outlook, accounting for varying market conditions and fund performance fluctuations. This will provide a safer margin if economic cycles underperform expectations.

Investment Horizon
Extending your time horizon beyond 5-8 years may increase your chances of reaching higher CAGR, as equity returns tend to stabilise and increase over longer periods.

Risk Tolerance Assessment
Small and mid-cap funds are more volatile, which requires a high-risk tolerance and a strong ability to endure market dips without impacting your goals.

3. Review of Selected Funds

Your selected funds have a solid reputation in their respective categories. Here’s a general assessment of each:

Mirae Asset Large Cap Fund
This fund’s large-cap focus offers stability, aligning with your objective. It is known for consistent returns, aligning well with your 40% large-cap allocation.

Motilal Oswal Mid Cap Fund
The Motilal Oswal fund’s mid-cap focus provides substantial growth potential. It is suitable for a 5-8 year horizon but requires regular performance reviews.

Kotak Emerging Equity Fund
Known for effective exposure to mid-caps, this fund aligns with your objective but may need periodic assessment to ensure it continues to perform in line with your 18% CAGR target.

Nippon India Small Cap Fund
Small caps are inherently volatile but offer strong growth potential. This fund provides significant upside potential, although it demands careful monitoring, especially during market corrections.

4. Actively Managed Funds vs. Index Funds

Actively managed funds, as chosen in your portfolio, often outperform index funds, especially in mid and small caps. Index funds lack flexibility, whereas actively managed funds offer portfolio adjustments by fund managers, especially beneficial during market fluctuations. Relying on a Certified Financial Planner for actively managed fund selection and rebalancing can ensure ongoing alignment with your goals.

5. Regular Portfolio Rebalancing

Regular rebalancing is essential for risk management and optimal growth.

Market Conditions
Equity markets are unpredictable. Rebalancing every 12-18 months will help you take advantage of market upswings while protecting gains.

Aligning with Changing Goals
As your retirement timeline progresses, shifting a portion of your equity allocation to more conservative options may be beneficial. This reduces exposure to volatility as your retirement approaches.

6. Considerations on Direct Funds vs. Regular Funds

Direct funds can offer cost advantages, but working through a Certified Financial Planner can provide crucial professional oversight. This guidance is especially valuable for achieving and adjusting high CAGR targets, like your 18% expectation. A CFP will help assess performance, market conditions, and portfolio adjustments while enhancing your chances of meeting your goals.

7. Capital Gains Tax Implications

Understanding capital gains tax rules is vital to maximise returns:

Long-Term Capital Gains (LTCG)
Equity mutual fund LTCG above Rs 1.25 lakh is taxed at 12.5%.

Short-Term Capital Gains (STCG)
Short-term gains are taxed at 20%. These rules impact how and when you sell, so strategise your withdrawals to minimise tax.

Consulting a tax expert can help optimise your exit strategy, reducing tax impacts on your returns.

Final Insights

Your portfolio aligns well with your objectives, but an 18% CAGR expectation might need adjustment based on market trends. Actively managing and rebalancing your portfolio can enhance your chances of reaching your targets. Remember, equity investment performance may fluctuate, so regular review is essential.

Working with a Certified Financial Planner will add value in ensuring your portfolio stays aligned with your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

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after 11 years of courtship i married my boyfriend with parents permission after convincing them .We have been married for 1 year now and in this one year i saw many changes in him.he gives importance to his mother takes decisons without discussing with me but with his mother.To please his mother he talks about me like she dint do that particular thing.Now he went abroad for job and i am pregnant .I left my job and shifted to my parent's place.He doesnt even talk to me or message me.I only have to message him.If i tel any of my pregnancy complaints he either tells his mother or says i am overthinking.Now he said if I dont follow his house rule i better stay in my parents place only .I am so upset and devastated.What should I do
Ans: Dear Anonymous,
What according to you have caused these changes in him and that too after 11 years of courtship? Did any instance cause him to act differently than before? And were there no indications of him acting different during your courtship days?
Why I ask this is that it is difficult for anyone to pretend for 11 long years! He would have displayed his current behavior sometime in the past and maybe you simply decided to overlook it?
Courtship days and marriage days are vastly different and what seemed okay during the courtship time becomes an issue after marriage. If this is not the case, it's quite possible that some incident which was seemingly small became a huge issue in his head causing him to act different?
Now, why am I going into this so much is because most often we overlook reasons that can be worked on. So, do think hard on this...
It is also time to involve your parents who can talk to his mother and figure out why her son is acting all weird. Surely, your mother-in-law needs to know that her interference the way it is, is going to destroy her son's marriage. So, get your parents to talk to her. And in the meantime, as hard as it may seem, do take care of your health for yourself and your baby.

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Dating, Relationships Expert - Answered on Jan 02, 2025

Asked by Anonymous - Dec 24, 2024Hindi
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I am in a relationship with a girl since last 1.5 years, i told her everything regarding my financial status,my past ,everything.......she was also in a relationship for 5 years and she told me intially her ex mistreats her, abuse her , sexually force her and she hates him etc all this stuff.....but i found that she herself called her ex and then told me after 4 months...i forgive her but from last 2 months her behaviour is changed , now she is finding too many problems in how i look, my financial status and compare with other boys that they have car and they took their gf to long drives etc( her ex contacted her again and told her he got a job since then she starts all this stuff? She triggered my insecurities and i am feeling most useless and worst person... what should i do, does she really loves me? Please guide me ...i am started feeling depressed .......
Ans: Dear Anonymous,
Let's address the most important thing first, does she really love you? I am not sure about that. It's neither a solid yes or a solid no. But therein lies the challenge. If there is confusion, there is concern. Moreover, the habit of drawing comparisons with other people and how they treat their partners is an indication of a toxic relationship. I would urge you to rethink this relationship.

There will always be someone better out there- with a better car, a better-paying job, or even better looking, but that doesn't mean we stop loving our partner and leave them for that "better someone." Loving your partner is a choice you make every day. Having said that, it is okay if she wants someone "better." Let her. You deserve better too.

Please reconsider this relationship, especially if it is causing you so much sorrow.

Best wishes.

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Ravi

Ravi Mittal  |485 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 02, 2025

Asked by Anonymous - Dec 26, 2024
Relationship
Hi i am 30yr old man i was in relationship with girl from school time since15 year with different caste in 2023 marriage proposal from another girl comes that time i talked with my family about my love they refused for marriage to her i did not put aggressive effort as i also don't want to hurt them after my marriage in a month i am remembering her continuously and start taking to her again i also told my wife about it she doesn't want to leave me (i also told her before our marriage but that time i told her that we broke up) after a year in this November her marriage is fixed by her parents now she is married since 2 month but she also don't want to live with her husband and want to come back We both wanted to come back to each other what should we do.??
Ans: Dear Anonymous,
I understand that it is a tricky situation. I am sorry I cannot tell you what you should do, but I can tell you that you have to handle this very carefully because it's a sensitive matter and involves too many people and their emotions. You can discuss the same with your family; you might be worried about upsetting them but at the end of the day, it's your life and you will have to live a long long time with the decisions you make. Sort your priorities- ask yourself these simple questions: what would hurt you more- hurting your parents and making your wife collateral damage because of your confusion or not living the rest of your life with the woman you love? Once you can answer these truthfully, it will be easier to make a choice.

Hope this helps

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Ravi

Ravi Mittal  |485 Answers  |Ask -

Dating, Relationships Expert - Answered on Jan 02, 2025

Asked by Anonymous - Dec 28, 2024
Relationship
I love my boyfriend very much but the thing is i am not a virgin and my boyfriend doesn’t know that , he thinks i am a virgin and he wants me to be virgin only , i am completely loyal to him I don’t have any type of contact from my ex boyfriend and i really want to marry my boyfriend and live a healthy and loyal life , my boyfriend doesn’t like lies but i really can’t tell him the truth as it will affect my relationship which i don’t want to happen, he will come to know that i am not a virgin but the main problem is my ex bf what if he comes in my life again and tries to spoil my relationship by telling my bf the truth? And i really don’t want this to happen what should i do? I myself don’t want to loe to my bf but this is the thing i really can’t tell him it will break my relationship and other than this there is nothing that i lied i am just afraid what if my ex blackmails me and when my bf comes to know and he will be heartbroken i don’t want to break his trust
Ans: Dear Anonymous,
I understand that your virginity is important to him and you should not have kept this from him, but do you understand that your virginity is your choice? Why does he have a say in it? He is your partner- he loves you, but he doesn't own you. And what you did in your past is not something he can judge you by; why should that affect your relationship? I know that you love him but it's better to tell him the truth and accept the outcome than to keep lying and feel guilty about something you should not even be worrying about.

I am sure he has many great qualities but being so concerned about your virginity seems a little concerning. You are a person with so many other attributes. Why would he ignore all of that and care only about something that you have no control over? I suggest you tell him, but please remember, no matter what he says, you are not at fault here. It's in your past, a time when he did not exist for you.

Best Wishes

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Ramalingam Kalirajan  |7408 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 02, 2025

Money
Hello everyone, I need some advice on investments. I’m planning to invest around 25k monthly in equity mutual funds and stocks through a Demat account in my mother’s new demat account. I already have my own account as well. The investment amount for my mother’s account will come from rental income generated from a property owned by my father. Is this approach acceptable, or could there be any issues with the investment process or the inflow of funds into my mother’s account? My plan is to invest for the long term, approximately 12-15 years.
Ans: Your plan to invest Rs 25,000 monthly in equity mutual funds and stocks is commendable.

A 12-15 year horizon is ideal for equity investments.
Investing through your mother’s Demat account is possible but requires careful attention.
Let us examine the key aspects and potential issues in this approach.

Fund Source and Ownership Implications
Using rental income from property owned by your father raises ownership considerations.

Ensure the rental income is legally transferred to your mother’s account.
If your father remains the legal owner, document the transfer as a gift or allowance.
This clarity avoids tax-related complications in the future.
Proper documentation ensures that the funds in your mother’s account are not questioned.

Taxation of Rental Income
Rental income received by your father will be taxed under his name.

Transferring funds to your mother does not change the tax liability.
Your father will continue to report this income in his tax returns.
Ensure all transactions are clear and traceable for compliance.
This ensures transparency and avoids potential legal issues.

Taxation on Investments in Your Mother’s Name
Investing in your mother’s name offers certain tax advantages.

If your mother has no other significant income, her tax liability will be lower.
Long-term capital gains on equity funds above Rs 1.25 lakh are taxed at 12.5%.
Short-term gains are taxed at 20%.
This can reduce the overall tax burden on the portfolio returns.

Choosing the Right Investment Vehicles
Your strategy includes equity mutual funds and stocks. Diversify carefully for consistent growth.

Allocate a significant portion to actively managed equity funds for steady returns.
Avoid index funds due to their passive nature and lack of adaptability.
Use multi-cap or diversified funds to manage risks effectively.
For stocks, focus on blue-chip and fundamentally strong companies for long-term wealth creation.

Avoiding Risks with Direct Funds
Direct funds lack the guidance of an expert.

Without a Certified Financial Planner, portfolio decisions may not align with goals.
Regular funds through a trusted distributor offer better support and insights.
This ensures professional management of your investments.

Monitoring and Rebalancing
Investments require periodic monitoring to stay aligned with goals.

Review the portfolio annually for performance and sector allocation.
Rebalance to maintain the desired equity-debt ratio as market conditions change.
This keeps your portfolio on track over the long term.

Legal and Practical Considerations
Using a separate Demat account in your mother’s name is acceptable.

Ensure that account documentation reflects her as the sole holder.
Clearly separate her investments from your personal portfolio.
This avoids confusion and ensures clarity in ownership.

Suggestions for Long-Term Wealth Creation
Your investment horizon of 12-15 years supports growth-focused strategies.

Allocate 60% to actively managed equity mutual funds for high potential returns.
Reserve 20% for hybrid funds to balance risks and provide stability.
Keep 10% in international equity funds for diversification.
Use 10% for direct stocks in stable and high-growth sectors.
This diversified approach balances risks and maximises returns over time.

Final Insights
Your investment strategy is promising and aligns with long-term wealth creation. Document the fund transfers clearly to avoid tax and legal complications. Avoid index funds and direct funds due to their limitations. Engage a Certified Financial Planner to optimise fund selection and monitoring. A diversified portfolio will help you achieve your financial goals efficiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

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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