My daughter is in the UK for the last one year and likely to continue his stay on an employment visa. Thus she becomes an NRI while filing tax returns in India. She does not have a salary income in India. Her earnings are from savings bank interest and fixed deposits. Total income is less than Rs 2.5 lakh in India.

Is she required to file an IT return in India to get an IT refund (TDS amount FD)? What is the procedure?

Ans: It’s great that you are considering investing for the long term. Here is a detailed plan for you:

Start with a Diversified Mutual Fund
Direct investment in stocks requires time, research, and expertise.

A diversified mutual fund is better for beginners and long-term growth.

Choose actively managed flexi-cap or large-cap equity funds.

These funds balance risk and reward effectively.

Avoid Sector-Specific Investments Initially
Sectoral funds or stocks (like technology, pharma) are volatile.
Invest in these only after building basic financial knowledge.
Build a Systematic Investment Plan (SIP)
Instead of investing Rs. 2 lakh at once, use SIPs.
Invest Rs. 10,000–20,000 monthly in equity mutual funds.
This spreads risk and captures market fluctuations effectively.
Emergency Fund First
Keep at least Rs. 50,000 in a savings account or liquid fund.
This acts as a safety net for emergencies.
For Direct Stock Investment
If you want to invest in stocks:

Focus on companies with strong fundamentals and consistent growth.
Avoid high-risk penny stocks or speculative trades.
Look into large-cap companies with leadership in their industries.
Examples of industries to consider:

Banking and Financials: Well-established players for consistent returns.
Consumer Goods: Reliable performance even in volatile markets.
IT Sector: Long-term growth prospects with global exposure.
Key Points to Remember
Invest with a horizon of at least 5-10 years for meaningful growth.
Diversify your investments to reduce risk.
Consult a Certified Financial Planner for detailed guidance.
Stay disciplined and avoid emotional decisions during market fluctuations.
Final Insights
Starting with mutual funds is the safest and most efficient way.

Direct stocks require significant time and understanding.

Ensure your investments align with your goals and risk tolerance.

With the right approach, Rs. 2 lakh can grow into significant wealth over time.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Hello;

Request you to please rephrase your question and submit again.

Thanks;

Ans: You might be having some old Salary Slips, bank entries regarding Salary payments & old PF Statements to prove your point. You may approach to your employer to certify this information & approach PF authorities with these documents. May be they can help you in such a matter.
Most welcome for any further clarifications. Thanks.

Ans: Hello;

You may start a monthly sip of 10 K in addition to earlier 2 K sip.

If you continue this sip for 20 years in a equity mutual fund then you may expect to receive a corpus of around 1.2 Cr for your retirement. (12% return considered)

Likewise for other goals like travel you may begin monthly sip's for 3-5 year duration in equity savings or balanced advantage type hybrid funds.(8-9% returns on average), Not assured.

Happy Investing;

Ans: Your portfolio reflects a disciplined approach to long-term wealth creation. Investing with a horizon of 15-20 years is an excellent strategy. Below is a detailed assessment and suggestions for optimisation.

Strengths of Your Portfolio
Diversification Across Asset Classes
Your portfolio includes equity-focused funds and hybrid funds. This diversification reduces risks.

Allocation to Flexi-Cap Funds
Including flexi-cap funds provides balanced exposure to large, mid, and small-cap companies.

Focus on Growth
Growth options in your funds allow compounding over the long term.

Systematic Investments
SIPs ensure disciplined investing and rupee-cost averaging.

Lump Sum Investments
Lump sum investments supplement SIPs by capturing market opportunities.

Areas for Improvement
1. Portfolio Overlap

Multiple funds in your portfolio might overlap in underlying investments.
For instance, flexi-cap and large-cap funds may invest in similar stocks.
Overlap reduces diversification benefits.
Recommendation

Evaluate fund portfolios with a Certified Financial Planner to identify overlap.
Retain funds with distinct investment strategies.
2. Sectoral Funds Risk

Sectoral funds focus on specific industries like technology or consumption.
These funds are highly volatile and carry higher risk.
Recommendation

Limit sectoral fund exposure to 10% of your portfolio.
Instead, focus on diversified funds for consistent growth.
3. Hybrid Fund Allocation

Hybrid funds mix equity and debt, offering balanced risk and returns.
However, they might underperform pure equity funds in long bull markets.
Recommendation

Reassess hybrid fund allocation based on your risk tolerance.
Consider increasing equity fund allocation for long-term goals.
4. Tax Efficiency

Equity mutual funds have specific tax implications under new rules:
LTCG above Rs. 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Recommendation

Plan withdrawals to optimise tax liabilities.
Avoid frequent withdrawals to maximise compounding.
Suggestions for Portfolio Optimisation
1. Consolidate Mutual Funds

Retain 4-5 funds across different categories: large-cap, mid-cap, and flexi-cap.
This reduces complexity and improves portfolio tracking.
2. Increase SIP Contributions

SIPs offer the advantage of disciplined investing and rupee-cost averaging.
Increase your SIPs gradually to enhance long-term corpus.
3. Focus on Actively Managed Funds

Actively managed funds outperform index funds in emerging markets like India.
They adapt to market conditions and deliver superior returns.
4. Review Fund Performance Annually

Monitor fund performance against benchmarks and peers.
Replace consistently underperforming funds after consulting a Certified Financial Planner.
5. Maintain an Emergency Fund

Keep 6-12 months’ expenses in a liquid fund or FD.
This ensures liquidity for unforeseen needs.
Retirement Planning Considerations
1. Corpus Target of Rs. 8 Crores

Achieving Rs. 8 crore requires consistent investments and strategic planning.
SIPs and lump sums in equity mutual funds are ideal for wealth creation.
2. Inflation Adjustment

Plan your retirement corpus keeping inflation at 6-7% annually in mind.
Ensure your investment strategy beats inflation over the long term.
3. Health Coverage

Health costs rise significantly in retirement.
Review your health insurance coverage to ensure sufficient protection.
4. Withdrawal Strategy

Adopt a systematic withdrawal plan (SWP) in retirement.
This ensures steady income while preserving your corpus.
Additional Considerations
1. Avoid Emotional Decisions

Market volatility is normal in long-term investments.
Stick to your plan and avoid reacting to short-term fluctuations.
2. Revisit Goals Periodically

Review your financial goals every 2-3 years.
Adjust your portfolio if your financial situation or goals change.
3. Stay Informed

Understand the funds you invest in.
Consult a Certified Financial Planner for insights and guidance.
4. Avoid Direct Funds

Direct funds may seem cost-effective but lack expert advice.
Investing through a Certified Financial Planner ensures informed decisions.
Final Insights
Your portfolio is well-structured for long-term wealth creation.

Consolidate funds to reduce overlap and complexity.

Focus on actively managed funds for superior returns.

Limit sectoral exposure to balance risk and reward.

Maintain discipline in SIPs and stay invested for the long term.

With these strategies, you can achieve your financial goals effectively.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: Donot offer processed stuff especially if sweet like biscuits as a food substitute. Be consistent with meal times and no snacks to be offered in between. This includes sweet drinks like juices too. Junk food to be allowed only once a week or two weeks of she has been eating a balanced diet through the week. So no chocolates on a daily basis. Once you do this, she will start getting hungry. Then only give her a balanced diet even if she resists. It doesn't matter if she eats less than what you think should be eaten.

Ans: Dear Anonymous,
Lust and behaviors that arise from it are just one aspect of your life not the only thing. When you get consumed with it in a way that it starts to impact your daily living, then hey, you have to do something really heavy to make a change.
Now, what can that be? A new skill, a hobby...these kind of challenges keep the mind in a learning mode and channelizes your energies into another thing as well.
But of course, do make sure that you and your partner are also having your share of intimacy. This along with learning something new can ideally do the magic. Also, put on those gym shoes, running shoes or anything that gets you enough physical activity. See where all this goes...
On, and guilt, is quite a wasteful job in your case...so drop it and focus on newer things that keep you on your toes.

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

Ans: Dear Siya,
Either you go with what your parents say OR completely go your way. You can't sadly have it all...what can you do when you are emotionally weighed down by the fact that one decision against your parents and your sisters may not get married. It's a lot to handle...
Choose one side and stick with it; but do understand it will come with its own set of challenges and hope that someday things will settle down and work itself out.

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

Ans: Dear Anonymous,
Well, it's dream v/s practicality, yeah?
When you get to a stalemate situation like the one you and your wife are in, the best way is to go back to the Square A.
Start where you began when you married...list down what's important to each of you and somewhere in your case, it will lead not just to her wants and yours, but it will go back to money and financial prudence. When you hit this, come to an understanding as to how you will overcome this; it has to be mutually agreed upon. Then bring your current home buying issue and solve it just like the way you sorted your differences over finances. Try it...it will work...

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