I have hdfc small cap, multicap, flexicap funds all direct. Since the mid and small cap segment is overheated, can I invest in hdfc nifty 250 small cap index fund and nifty 150 midcap index fund now?

Ans: Starting a business at 19 is a brave step. You’ve shown courage and action. That is a strong quality. You’ve already done something many people only think about. So please take heart. Even though things are tough now, this is not the end. It can still turn around with the right actions. Let us approach the situation step by step.

Talk Openly and Calmly with the Lender

– Please meet the person who gave the loan.

– Be respectful, but explain your real situation.

– Tell him you want to repay but need time.

– Assure him of your commitment and honesty.

– You can request a revised timeline for repayment.

– Suggest small monthly payments till business picks up.

– If possible, make a part payment of Rs. 10,000 or Rs. 20,000 now.

– That small gesture will show your intention to repay.

– Many lenders become flexible when they see honesty and effort.

Do Not Run Away or Avoid the Lender

– Skipping communication makes the lender more angry.

– That can lead to threats or even complaints.

– It also damages your personal reputation.

– Please show up and take responsibility.

– You may feel pressure, but facing it is the brave step.

Explore Support from Family or Known Circles

– This is not the time for ego.

– Request help from family members or close relatives.

– Explain everything honestly. Don’t hide anything.

– They may not give full amount, but something is better than nothing.

– Even Rs. 50,000 can help you calm the lender temporarily.

– Friends or ex-colleagues can also offer temporary support.

– Offer to pay them back monthly with proper plan.

Try to Raise Funds from Business Customers

– Look at your business: Can you collect dues from any clients?

– Offer them discounts for early payments.

– Can you sell some stock at lower price to get quick cash?

– Even a quick sale at loss is better than loan damage.

– Cash flow matters now more than profits.

– Try all small ways to raise at least part of the amount.

Avoid Personal Loans or Credit Cards for Now

– You already got rejected by banks. That’s okay.

– Don’t go to loan apps or high-interest private lenders.

– Many charge more than 36% yearly. That’s dangerous.

– It will only increase your stress and ruin your credit score.

– Focus on real income, not more loans.

List Down All Personal Assets

– Do you have a scooter, phone, gadgets, or any asset?

– Can you sell or pledge it temporarily?

– Even Rs. 30,000 from old items can reduce lender pressure.

– This step may feel painful, but it buys you time and safety.

– Remember, assets can be bought again later.

Offer Work or Partnership to the Lender

– This may sound strange, but consider it.

– If the lender is business-minded, offer him a profit-sharing model.

– Show him your business plan and what you’re trying to build.

– Offer him part of future profits if he agrees to wait for repayment.

– He may agree if he sees potential and your honesty.

Keep the Business Alive, But Cut Costs

– Don’t shut the business out of fear. It can still work.

– Cut all expenses to bare minimum. Every rupee matters.

– Don’t take salary now. Keep focus on survival.

– Track every paisa. Treat it like gold.

– Make a short-term goal of breaking even monthly.

– Slowly you can repay all if the business becomes stable.

Build Credibility with Documentation

– Though banks denied loans, don’t lose hope.

– Start documenting your business from now.

– Keep income records, bills, client receipts.

– Register the business if not done already.

– Open a current account for the business.

– This builds a strong base to apply for loans later.

Learn from the Mistake, but Don’t Quit

– Taking unplanned loans without backup is risky. You now know that.

– This will teach you financial discipline.

– But don’t lose confidence. Many big business owners failed once.

– Learning early in life is a blessing.

– Success is not about avoiding failure, but learning fast from it.

Avoid Wrong Advice and Quick Fixes

– Some people may advise you to take another loan to repay this one.

– Or some may say run away or avoid the lender.

– These are temporary escapes. You will suffer more later.

– Stay on honest path. You are young and can rebuild quickly.

Start Personal Budgeting Immediately

– Track your personal expenses from today.

– Cut all luxuries or non-essentials.

– Save every rupee possible.

– Use savings to repay the lender slowly if he agrees.

– Start small SIP in mutual funds once your base is strong.

In Future, Build Emergency Fund First

– After recovery, keep at least 3 months’ expenses saved.

– This will protect you in business down periods.

– Never invest or start a venture without this safety net.

Don’t Mix Insurance with Investment

– If you ever bought ULIPs or LIC endowment policies, review them.

– They usually give low returns and high charges.

– If you have such policies, surrender them after checking terms.

– Invest that money in mutual funds through CFP-guided MFDs.

– Avoid investment-cum-insurance plans in future.

Avoid Direct Mutual Funds Without Guidance

– Direct plans may look cheaper but lack human guidance.

– As a beginner, wrong fund choice or wrong timing can hurt.

– Regular plans through MFDs guided by Certified Financial Planners give better handholding.

– They also track your progress and guide in tough times.

Why Actively Managed Funds Are Better

– Index funds just copy the market.

– They don’t adapt to market changes or risks.

– In falling markets, they give full downside.

– Actively managed funds have skilled managers.

– They can reduce risk and find better opportunities.

– Over time, they can give better returns if chosen wisely.

Think Long Term, but Act Fast Today

– Your immediate goal is to calm the lender.

– Next step is to cut business losses and build income.

– Then create a 1-year, 3-year and 5-year financial roadmap.

– You are only 19. You can bounce back better and stronger.

Finally

– Appreciate your courage to reach out and share the issue.

– Many stay silent and make it worse. You did the right thing.

– Take one step at a time. Start today.

– This challenge is just a chapter, not the end.

– You have time, energy and courage on your side.

– Use this moment to build financial maturity.

– One right action now can save your next 10 years.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment