I have 354 shares of ITC @ 435. What's the long term prospects

Ans: Dear Anonymous,
Study for yourself; not for your parents or not to be better than someone else.
Shifting focus from what others will think to how I can do my best will allow you to be very determined. Procrastination will actually vanish and you will be very motivated from within. Don't believe it? Try shifting focus and see what happens!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: https://www.facebook.com/anukrish07/ AND https://www.linkedin.com/in/anukrishna-joyofserving/

Ans: When you return to India after being an NRI (Non-Resident Indian) for more than 20 years, your tax residency status will change. You will be considered a Resident but Not Ordinarily Resident (RNOR) for the first two financial years (April to March) after your return.

As an RNOR, your foreign income is generally not taxable in India unless it's derived from a business controlled or set up in India. So, any income earned from foreign sources during the RNOR period would generally not be taxable in India.

However, any income earned in India during the RNOR period will be taxable in India, along with any income from a business controlled or set up in India, regardless of whether it's earned domestically or abroad.

After the RNOR period, if you continue to stay in India, you will become a Resident and Ordinarily Resident (ROR) for tax purposes. In this case, your global income, including income earned abroad, will be taxable in India.

Tax rates in India vary depending on the income slab you fall into, and there are also various deductions and exemptions available. It's recommended to consult with a tax advisor in India who can provide personalized advice based on your specific financial situation and the prevailing tax laws at the time of your return.

Ans: It's clear you've taken a proactive approach to investing, and you've built a diverse portfolio across various mutual funds. Let's assess your current holdings and provide some guidance.

Your SIPs in HDFC Defence, HDFC Multicap, HDFC Small Cap, Nippon Small Cap, and SBI Large and Mid Cap demonstrate a blend of large, mid, and small-cap exposure, which is commendable for diversification.

However, having multiple funds within the same fund house, such as HDFC, may lead to overlapping holdings and concentration risk. Consider diversifying across different fund houses to spread risk more effectively.

Your lump sum investments in HDFC Balanced Advantage, HDFC Focused 30, HDFC Manufacturing, SBI Contra, SBI PSU, and SBI Energy Opportunity Funds provide additional diversification across different investment themes and strategies.

While lump sum investments can be beneficial, especially during market downturns, it's essential to review your investment rationale for each fund and ensure they align with your long-term financial goals and risk tolerance.

Given the size of your lump sum investments, consider consulting with a Certified Financial Planner to assess if your portfolio is appropriately diversified and if any adjustments are needed to optimize returns while managing risk.

Additionally, periodically review your portfolio's performance and make necessary adjustments to stay aligned with your financial objectives and market conditions.

In conclusion, while your current investments showcase a diverse portfolio, consider diversifying across fund houses and regularly reviewing your holdings to ensure they remain aligned with your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Achieving a minimum return of 12% per annum requires a strategic and diversified approach to investing. Here are some reasonable and safe investment options to consider:

Equity Mutual Funds: Investing in well-managed equity mutual funds with a track record of consistent performance can potentially offer returns higher than 12% over the long term. Opt for funds with a diversified portfolio across sectors and market capitalizations to mitigate risk.

Index Funds: While you mentioned not recommending index funds, they can still be considered for their lower fees and broad market exposure. However, actively managed funds may offer the potential for higher returns, albeit with slightly higher fees.

Diversified Portfolio: Building a diversified portfolio that includes a mix of equities, debt instruments, and alternative investments can help spread risk and optimize returns. Consider allocating a portion of your portfolio to asset classes like bonds, gold, and real estate investment trusts (REITs) to enhance diversification.

Systematic Investment Plans (SIPs): Investing regularly through SIPs in mutual funds allows you to benefit from rupee cost averaging and can potentially generate attractive returns over the long term, even during market fluctuations.

Public Provident Fund (PPF): PPF offers a tax-efficient investment option with relatively stable returns and a long-term investment horizon. While the returns may vary, historically, PPF has offered returns higher than 12% in some periods.

National Pension System (NPS): NPS is a retirement-focused investment vehicle that offers the potential for attractive returns through exposure to equities, corporate bonds, and government securities. Opting for the Active Choice option allows you to customize your asset allocation based on your risk tolerance and return expectations.

Real Estate Investment Trusts (REITs): Investing in REITs provides exposure to the real estate sector without the hassle of property management. REITs typically offer attractive dividend yields and the potential for capital appreciation over time.

Direct Equity: While direct equity investing carries higher risk, carefully selecting fundamentally strong companies with growth potential can potentially yield returns higher than 12% over the long term. Conduct thorough research or seek guidance from a Certified Financial Planner before investing in individual stocks.

Remember, achieving a minimum return of 12% per annum requires patience, discipline, and a long-term investment horizon. It's essential to align your investment strategy with your risk tolerance, financial goals, and time horizon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: what is your vision behind investing and how long are you going to invest?

Ans: Hello Madeswaran! It's commendable that you're seeking to take control of your finances and work towards financial freedom. Let's assess your current situation and explore steps to get you back on track.

At 33, with a monthly income of Rs. 45,000 and monthly expenses of Rs. 35,000, it's essential to understand where the remaining Rs. 10,000 is being spent. Tracking your expenses diligently can help identify areas where you can cut back and redirect funds towards savings and debt repayment.

Given your previous financial setbacks, it's crucial to prioritize building an emergency fund to cover unexpected expenses and avoid going into further debt. Aim to set aside at least 3 to 6 months' worth of living expenses in a separate savings account as a safety net.

Addressing your existing debt of Rs. 1 lakh should be a priority. Focus on clearing this debt as soon as possible by allocating a portion of your monthly income towards repayment. Cutting back on non-essential expenses can free up additional funds for debt reduction.

Considering your goal of achieving financial freedom by the age of 50, it's important to establish a long-term financial plan. Start by setting specific, achievable goals and creating a budget to track your income and expenses.

Explore opportunities to increase your income through additional sources such as freelance work, part-time jobs, or starting a side business. Generating a secondary income can provide a financial buffer and accelerate your journey towards financial freedom.

Investing in yourself through education, acquiring new skills, or pursuing career advancement opportunities can also enhance your earning potential over the long term.

Finally, seek guidance from a Certified Financial Planner who can provide personalized advice tailored to your financial situation and goals. They can help you create a roadmap for achieving financial freedom and offer support and guidance along the way.

Remember, financial freedom is achievable with determination, discipline, and strategic planning. By taking proactive steps now, you can pave the way for a brighter financial future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's admirable that you're actively planning for your retirement, considering your family's needs and aspirations. Let's evaluate your current financial situation and chart a course towards a smooth retirement.

At 42, with a term plan of 1.5 crores and a family health insurance cover of 60 lakhs, you've taken crucial steps to protect your family's financial well-being in case of unforeseen events. These measures provide a safety net, ensuring financial stability during challenging times.

Investing 65K per month in SIPs across small, mid, multi, and momentum funds showcases a diversified approach to wealth accumulation. Your current SIP value of 50 lakhs reflects consistent savings and prudent investment decisions.

To ensure a smooth retirement, it's essential to estimate your post-retirement expenses and assess if your current savings and investments align with your retirement goals. Consider factors such as inflation, lifestyle expenses, healthcare costs, and any other financial obligations.

Given your current monthly expenses, it's crucial to evaluate if your retirement corpus will be sufficient to maintain your desired lifestyle post-retirement. If there's a shortfall, you may need to consider increasing your savings rate or exploring alternative investment strategies to bridge the gap.

Additionally, review your asset allocation and risk tolerance to ensure they are in line with your retirement timeline and goals. As you approach retirement age, gradually transitioning to more conservative investment options can help protect your accumulated wealth.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific needs and aspirations. They can conduct a comprehensive retirement analysis, recommend suitable investment strategies, and help you navigate potential challenges along the way.

By taking proactive steps now and staying committed to your long-term financial goals, you can pave the way for a smooth and fulfilling retirement life for you and your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's great to see your proactive approach to financial planning, especially considering your goal of retiring in 20 years. Let's assess your current situation and retirement aspirations.

At 31, with investments in MFs, NPS, and stock SIPs, along with employer's EPF contributions, you've built a solid foundation for your future. Investing 38K monthly in MF SIPs, 12K in NPS, and 3K in stock SIPs demonstrates a commitment to long-term wealth accumulation.

Your MF investments totaling 15 lakhs, combined with ongoing SIPs, showcase a disciplined approach to building wealth. Additionally, contributing to NPS provides an additional avenue for retirement savings, offering tax benefits and long-term growth potential.

Investing in stock SIPs in Nasdaq exposes you to international markets, diversifying your portfolio and potentially enhancing returns. However, it's essential to monitor and diversify your stock investments to manage risk effectively.

Your house loan EMI of 22K, scheduled to end in 2032, is a significant financial commitment. As you approach retirement, consider strategies to pay off or reduce this debt burden to free up cash flow for retirement expenses.

To determine if your current savings and investments will be sufficient for retirement, it's essential to estimate your post-retirement expenses and assess if your investment portfolio can generate enough income to cover them.

Consider consulting with a Certified Financial Planner to conduct a comprehensive retirement planning analysis. They can help estimate your retirement expenses, evaluate your current savings and investment strategy, and recommend adjustments if necessary to ensure a comfortable retirement.

Overall, your proactive approach to financial planning bodes well for your future. With careful planning and periodic reviews, you can enhance the likelihood of achieving your retirement goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You're already on the right track with your disciplined approach to investing in SIPs. Let's review your portfolio and explore potential adjustments for long-term growth.

Investing in ICICI Prudential Bluechip Fund and Nippon India Growth Fund reflects a balanced mix of large-cap and diversified equity exposure, which is suitable for long-term wealth accumulation.

However, to further diversify your portfolio and potentially enhance returns, consider adding funds from different categories like mid-cap or flexi-cap funds. These categories offer exposure to companies with different market capitalizations and investment styles, thus spreading your risk more effectively.

Mid-cap funds invest in companies with medium-sized market capitalizations, which often have higher growth potential than large-caps but come with increased volatility. Flexi-cap funds provide the flexibility to invest across market caps, allowing fund managers to capitalize on market opportunities across the spectrum.

Adding a mid-cap or flexi-cap fund to your portfolio can complement your existing investments and provide additional avenues for growth. Look for funds with a track record of consistent performance, experienced fund managers, and a robust investment process.

Remember to review your portfolio periodically and rebalance if necessary to ensure it remains aligned with your long-term financial goals and risk tolerance.

Keep up the good work with your investments, and don't hesitate to reach out to a Certified Financial Planner for personalized advice tailored to your specific needs and objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in