I had redeemed all units of Mutual Funds in the month of January 2022 when Sensex was at its peak. Since more than 1 year has passed since the SIP installment started this comes under Long Term Capital gain. The long term capital gain is less then Rs 1 Lakh. As per Income tax rules these capital gains of up to Rs 1 lakh a year are tax-exempt. Do I still need to declare this amount while filing Income Tax returns for the financial year 2021-2022 or only if the long term capital gain is above Rs 1 lakh this amount needs to be declared while filing Income Tax returns for the financial year 2021-2022?

Ans: Your diversified portfolio showcases a mix of small-cap, mid-cap, and large & mid-cap funds, offering potential for growth across market segments. However, it's essential to review your portfolio periodically and ensure it aligns with your financial goals and risk tolerance.

Consider factors like the fund's performance relative to its benchmark and peers, consistency of fund management, and changes in your financial situation. If these funds continue to meet your investment objectives and demonstrate strong performance, you may consider continuing with them.

As for increasing your SIP amount, evaluate your capacity to invest more based on your income, expenses, and other financial commitments. If you have surplus funds available for investment, increasing your SIP amounts can accelerate wealth accumulation over time. However, ensure you maintain a balance and don't overextend your finances.

Consulting with a Certified Financial Planner can provide personalized guidance tailored to your specific needs and circumstances. Together, you can assess your investment strategy and make informed decisions to achieve your financial goals.