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Ulhas

Ulhas Joshi  |279 Answers  |Ask -

Mutual Fund Expert - Answered on Dec 14, 2023

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Sunil Question by Sunil on Nov 27, 2023Hindi
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Hie sir i am 45 yr approaching. I have two lic policies, one ppf account, few small short term FDs and one ulip policy. I would like to invest in mutual funds for my own financial needs after 65 years of age. Can i invest on my own in mutual funds. If yes what is the best way . I have zero knowledge about how mutual funds work and which funds are best yo go ahead, please advise. SK

Ans: Hello Sunil & thanks for writing to me. You have a long term horizon of around 20 years that you can utilize to make investments.

As you do not have much idea about mutual funds, I recommend you can consider taking advice from a financial advisor who can help you plan your finances & help you make choose funds and other instruments that are suitable for you based on your own individual needs.

It is possible to invest in mutual funds by yourself, but you may not be able to achieve your goals or rebalance your portfolio on time.
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  |7336 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 04, 2024Hindi
Money
I am a 45 year old lady with almost zero understanding of mutual funds. My monthly income is approx 2 lac. I have three LIC policy which have been around for almost 10 years now and the yearly premium is 150000 for the three. After calculating all monthly expenses I can still save around 50k a month, so please advice on the best investing options or mutual funds / SIP as I really want to start saving for my retirement.
Ans: First, let's appreciate your commitment to saving and planning for the future. At 45, you're taking a crucial step toward securing your retirement. You have a steady income of Rs 2 lakhs per month, and you manage to save Rs 50,000 monthly after expenses. This is a commendable savings rate. Your LIC policies have been running for 10 years with an annual premium of Rs 1,50,000.

You have good financial habits and a stable foundation to build upon. Let's explore the best ways to invest your savings, focusing on mutual funds and Systematic Investment Plans (SIPs).

Evaluating Your Current Investments
Your LIC policies are traditional insurance products. While they offer a safety net, their returns may not be sufficient for your retirement needs. These policies likely provide a combination of insurance and investment, but their growth potential is limited compared to other investment avenues.

Considering your goal of maximizing retirement savings, it's crucial to evaluate if these LIC policies align with your objectives.

Why Mutual Funds?
Mutual funds pool money from various investors to invest in stocks, bonds, and other securities. They offer diversification, professional management, and potential for higher returns compared to traditional savings options.

Here are key reasons to consider mutual funds:

Diversification: Mutual funds invest in a variety of assets, reducing risk.

Professional Management: Experienced fund managers handle investments.

Flexibility: You can start with small amounts and increase over time.

Liquidity: Easy to buy and sell, offering good liquidity.

Potential for Higher Returns: Over the long term, mutual funds often outperform traditional savings options.

Disadvantages of Index Funds
Index funds track a market index, aiming to replicate its performance. While they are low-cost and passive, they have limitations:

Lack of Flexibility: They cannot adapt to market changes.

Average Returns: They only match market returns, not beat them.

Missed Opportunities: They cannot capitalize on undervalued stocks.

Benefits of Actively Managed Funds
Actively managed funds have professional managers making strategic decisions to outperform the market. They offer:

Flexibility: Managers can adjust portfolios based on market conditions.

Higher Return Potential: Skilled managers aim to exceed market returns.

Risk Management: Active managers can mitigate risks through strategic investments.

Why Avoid Direct Funds?
Direct funds are purchased directly from the fund house, bypassing intermediaries. However, they have drawbacks:

Lack of Guidance: No professional advice for fund selection.

Complex Management: Investors need to track and manage investments themselves.

Potential Mistakes: Without expert help, there's a risk of poor investment choices.

Benefits of Regular Funds Through a CFP
Regular funds involve an intermediary, often a Mutual Fund Distributor (MFD) with CFP credentials. Advantages include:

Expert Advice: Professional guidance in selecting the right funds.

Portfolio Management: Continuous monitoring and adjustment of investments.

Financial Planning: Holistic planning aligning with your financial goals.

Starting with SIPs
Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in mutual funds. They offer:

Discipline: Encourages regular savings.

Rupee Cost Averaging: Buys more units when prices are low, averaging out costs.

Compounding: Long-term investments grow through compounding.

Selecting the Right Funds
Given your goal of retirement savings, consider a mix of equity and debt funds. Here's a breakdown:

Equity Funds: Invest in stocks, suitable for long-term growth. They offer high returns but come with higher risk.

Debt Funds: Invest in bonds and securities, providing stability and regular income. Lower risk, but also lower returns compared to equity funds.

Balanced Funds: Combine equity and debt, offering a balanced approach. They provide growth and stability.

Recommended Allocation
Equity Funds: Allocate 60% of your savings. These funds will drive long-term growth.

Debt Funds: Allocate 30% of your savings. They will provide stability and reduce overall portfolio risk.

Balanced Funds: Allocate 10% of your savings. These funds offer a mix of growth and stability.

Action Plan for Your Savings
Review LIC Policies: Assess the returns and coverage. If they don't align with your goals, consider surrendering and reinvesting the proceeds in mutual funds.

Start SIPs: Begin with the Rs 50,000 you save monthly. Allocate according to the recommended allocation.

Monitor Regularly: Keep an eye on your investments. Adjust the allocation based on market conditions and financial goals.

Tax Benefits
Investing in mutual funds also offers tax benefits:

Equity-Linked Savings Scheme (ELSS): Provides tax deductions under Section 80C. It also has the potential for high returns.

Debt Funds: Offer indexation benefits for long-term capital gains, reducing tax liability.

Emergency Fund
Maintain an emergency fund equal to 6-12 months of expenses. This ensures you can handle unforeseen expenses without disrupting your investment strategy.

Insurance
Ensure you have adequate insurance coverage. Life insurance should cover at least 10 times your annual income. Health insurance is equally crucial to cover medical emergencies.

Financial Goals
Define your financial goals clearly. For retirement, estimate the corpus required and time horizon. This will help in planning the investment strategy effectively.

Final Insights
Your proactive approach to retirement planning is commendable. By understanding and leveraging mutual funds, you can maximize your savings and achieve financial security.

Prioritize reviewing your existing LIC policies and consider starting SIPs in a diversified portfolio. Regular monitoring and adjustments, with guidance from a Certified Financial Planner, will ensure you stay on track.

Building a retirement corpus requires a disciplined approach and smart investment choices. With a steady income and the ability to save Rs 50,000 monthly, you are well-positioned to achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7336 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 08, 2024

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I am retired and want to invest in mutual fund. my investment horizon is 3 to 5 years as my age is running 73 years. I don't have any liability OR obligations. my objective behind investment is wealth creation. I can bear midum type risk. please advise.
Ans: It’s great that you’re considering mutual funds for wealth creation. At 73 years old, planning for the future and managing your investments wisely is key. Let’s dive into the best approach for you.

Understanding Your Financial Goals and Risk Tolerance

You’re retired, with no liabilities or obligations, which gives you a lot of flexibility. Your investment horizon is 3 to 5 years, and you’re looking for wealth creation. You’re willing to take medium risk, which opens up various investment options.

Advantages of Mutual Funds

Mutual funds are a great way to diversify your investments and potentially achieve higher returns. Here’s why they might be suitable for you:

Diversification: Mutual funds invest in a variety of assets, spreading risk.

Professional Management: Managed by experienced fund managers who make informed decisions.

Liquidity: You can easily buy or sell units, offering flexibility.

Accessibility: You can start with a small amount and gradually increase your investment.

Types of Mutual Funds Suitable for Medium Risk

Given your risk tolerance and investment horizon, a mix of equity and debt funds could be ideal. Let’s explore the types of funds you might consider:

1. Hybrid Funds

Hybrid funds, also known as balanced funds, invest in both equity and debt instruments. They offer a balanced risk-reward ratio, making them suitable for medium risk investors.

Equity Allocation: Provides growth potential through stocks.

Debt Allocation: Offers stability and reduces overall risk.

2. Debt Funds

Debt funds invest in bonds and other fixed-income securities. They’re generally safer than equity funds but offer lower returns. For a medium risk profile, consider funds that invest in a mix of high-quality corporate bonds and government securities.

Stable Returns: Less volatile than equity funds.

Interest Rate Risk: Returns may vary with interest rate changes.

3. Equity Funds

Equity funds invest primarily in stocks. They’re riskier but can offer higher returns. For medium risk, consider large-cap or multi-cap funds, which are less volatile than small-cap or sector-specific funds.

Growth Potential: Historically, equities have provided higher returns over the long term.

Market Volatility: Prices can fluctuate significantly.

4. Dynamic Asset Allocation Funds

These funds dynamically adjust their allocation between equity and debt based on market conditions. They aim to maximize returns while managing risk.

Flexibility: Adjusts to market conditions to optimize returns.

Risk Management: Balances between equity and debt to manage risk.

Systematic Investment Plan (SIP)

A SIP is a disciplined way to invest in mutual funds. You invest a fixed amount regularly, which helps in averaging out the cost and reduces market timing risk.

Benefits of SIP

Disciplined Savings: Forces you to save regularly.

Rupee Cost Averaging: Buys more units when prices are low and fewer when prices are high.

Convenience: Automated investments from your bank account.

Evaluating Risks and Returns

It’s important to understand the risks associated with different types of mutual funds and align them with your risk tolerance.

1. Equity Funds

High Risk, High Return: Suitable for long-term goals.

Market Volatility: Prices can fluctuate significantly.

Long-Term Growth: Historically, equities have outperformed other asset classes over the long term.

2. Debt Funds

Low Risk, Stable Return: Ideal for short to medium-term goals.

Interest Rate Risk: Returns may vary with changes in interest rates.

Capital Preservation: Focus on preserving capital while earning modest returns.

3. Hybrid Funds

Balanced Risk and Return: Good for medium-term goals.

Asset Allocation: Diversifies across equity and debt.

Volatility: Less volatile than pure equity funds but riskier than debt funds.

The Power of Compounding

Compounding means earning returns on your returns. The longer you invest, the more your money grows exponentially. Even with a 3 to 5-year horizon, compounding can significantly impact your wealth creation.

Seeking Professional Guidance

Consult a Certified Financial Planner (CFP) to get personalized advice based on your financial situation and goals. They can help you create a comprehensive investment plan.

Holistic Financial Planning

A CFP will look at your overall financial picture, including income, expenses, assets, and liabilities. They’ll help you create a comprehensive financial plan that aligns with your goals and risk tolerance.

Customized Investment Strategy

They will recommend investment options that suit your risk tolerance and financial goals. A tailored approach ensures you’re not taking on more risk than you’re comfortable with.

Ongoing Monitoring and Adjustments

A CFP will regularly review your financial plan and suggest adjustments as needed. This ensures you stay on track to achieve your goals.

Leveraging Technology for Financial Management

Use technology to manage your finances more efficiently. There are many apps and online tools available for budgeting, expense tracking, and investing.

Budgeting Apps

These apps help you track your spending and identify areas where you can save. They provide a clear picture of your financial habits.

Investment Platforms

Online platforms make it easy to invest in mutual funds and other assets. They offer tools for research and analysis, helping you make informed decisions.

Automated Savings

Set up automatic transfers from your checking account to your savings or investment accounts. This ensures you consistently save and invest without needing to remember.

Understanding Mutual Fund Performance

When choosing mutual funds, it’s important to evaluate their performance. Look at historical returns, fund manager performance, and the fund’s expense ratio.

Historical Returns

Review the fund’s historical performance over different time periods. Consistent performance indicates good management.

Fund Manager Performance

The experience and track record of the fund manager are crucial. A skilled manager can navigate market fluctuations effectively.

Expense Ratio

The expense ratio is the annual fee charged by the fund. Lower expense ratios are preferable as they leave more returns for investors.

Disadvantages of Index Funds

While index funds are popular, they may not be suitable for everyone. Here’s why actively managed funds could be a better option for you:

Passive Management: Index funds simply replicate an index, without active management to navigate market changes.

Limited Flexibility: They can’t adapt quickly to market conditions.

Potentially Lower Returns: Active management aims to outperform the market, whereas index funds only match it.

Benefits of Actively Managed Funds

Actively managed funds can offer several advantages over index funds:

Professional Management: Fund managers actively select securities to maximize returns.

Flexibility: They can adapt to changing market conditions and invest in high-potential opportunities.

Potential for Outperformance: Skilled managers aim to beat the market, offering higher returns.

Disadvantages of Direct Funds

Direct funds bypass distributors and are bought directly from the fund house. While they have lower expense ratios, they may not be suitable for everyone.

Lack of Advice: You miss out on personalized advice from a Mutual Fund Distributor (MFD).

Complexity: Direct funds require more knowledge and active management.

Benefits of Regular Funds

Investing through a Mutual Fund Distributor with CFP credentials can provide several benefits:

Expert Advice: Receive personalized investment recommendations.

Convenience: MFDs handle all paperwork and transactions.

Ongoing Support: They provide continuous guidance and support.

Final Insights

Investing in mutual funds is a smart choice for wealth creation, especially with your medium risk tolerance and 3 to 5-year horizon. Consider a mix of hybrid, debt, and equity funds to balance risk and returns.

Utilize the power of compounding through a Systematic Investment Plan (SIP) and seek guidance from a Certified Financial Planner to create a personalized investment strategy. Leverage technology for efficient financial management and regularly review your portfolio to ensure it aligns with your goals.

By making informed decisions and staying disciplined, you can achieve your wealth creation goals and enjoy a financially secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7336 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 14, 2024Hindi
Money
Dear Mr. Ramalingam, I am 44 years old and single. The only investment I have is on PPF. For 15 lakhs. I want to start investing in Mutual funds about 20K per month. A long term investment until I am 58 years old . I have annual 35 lakhs medical insurance . I can invest in high risk as well. Can you please advise me where can I invest in mutual funds please ? Thank you very much in advance .
Ans: Investing in mutual funds is a strategic way to grow your wealth over time. Given your age of 44 and your plan to invest Rs 20,000 per month until you are 58, you have a solid investment horizon. Let's dive into how you can make the most of this opportunity.

Understanding Mutual Funds

Mutual funds are investment vehicles that pool money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. This diversification helps in spreading risk, which is essential for high-risk investments. Considering your openness to high-risk investments, let's explore various mutual fund categories suitable for long-term growth.

Equity Mutual Funds: A High-Growth Potential

Equity mutual funds invest primarily in stocks. They are known for their high growth potential and are ideal for long-term investors. Within equity funds, there are several sub-categories:

1. Large-Cap Funds:

These funds invest in large, well-established companies. While they are less volatile than mid-cap and small-cap funds, they still offer good returns over the long term. Large-cap funds can be the cornerstone of your investment portfolio, providing stability and consistent growth.

2. Mid-Cap Funds:

Mid-cap funds invest in medium-sized companies. These companies have the potential for significant growth, albeit with higher volatility than large-cap funds. Including mid-cap funds in your portfolio can boost returns while balancing risk.

3. Small-Cap Funds:

Small-cap funds invest in smaller companies with high growth potential. These funds are the most volatile but can offer substantial returns. A small allocation in small-cap funds can enhance your portfolio's growth prospects.

4. Flexi-Cap Funds:

Flexi-cap funds invest across large, mid, and small-cap stocks. This flexibility allows the fund manager to adjust the portfolio based on market conditions. Flexi-cap funds provide a balanced approach to risk and return.

Balanced Funds: Diversification with Stability

Balanced or hybrid funds invest in both equities and debt instruments. They offer a balance between growth and stability, making them suitable for investors looking for moderate risk. Within balanced funds, there are aggressive hybrid funds that have a higher allocation to equities and conservative hybrid funds that lean more towards debt instruments.

Debt Funds: Lower Risk with Steady Returns

Debt funds invest in fixed-income securities like government bonds, corporate bonds, and money market instruments. They offer lower risk compared to equity funds but with steady returns. Including a small portion of debt funds in your portfolio can provide stability during volatile market periods.

Sector and Thematic Funds: Targeted Growth

Sector funds invest in specific sectors like technology, healthcare, or finance. Thematic funds follow a particular investment theme, such as infrastructure or consumption. These funds can provide high returns if the sector or theme performs well. However, they come with higher risk due to their concentrated nature.

International Funds: Global Diversification

International funds invest in global markets, offering diversification beyond the Indian economy. They can be a valuable addition to your portfolio, providing exposure to international growth opportunities and mitigating country-specific risks.

SIP: The Smart Way to Invest

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly, such as Rs 20,000 per month. SIPs help in averaging the purchase cost and mitigate the impact of market volatility. They instill financial discipline and are ideal for long-term wealth creation.

The Power of Compounding

Investing Rs 20,000 per month for 14 years can lead to significant wealth accumulation due to the power of compounding. Compounding means earning returns on both your initial investment and the returns generated. Starting early and staying invested is key to maximizing this benefit.

Asset Allocation: The Key to Risk Management

Diversifying your investments across different asset classes is crucial for managing risk. A well-balanced portfolio might include a mix of equity, balanced, and debt funds. As you approach your retirement age, gradually shifting towards more stable investments can protect your accumulated wealth.

Tax Efficiency: Maximizing Your Returns

Mutual funds offer tax benefits that can enhance your overall returns. Equity funds held for more than one year qualify for long-term capital gains (LTCG) tax at a favorable rate. Equity-Linked Savings Schemes (ELSS) provide tax deductions under Section 80C, making them a tax-efficient investment option.

Regular Review and Rebalancing

Regularly reviewing and rebalancing your portfolio ensures it stays aligned with your financial goals and risk tolerance. Market conditions change, and so do your personal circumstances. Adjusting your investments accordingly helps in maintaining an optimal portfolio.

Choosing the Right Funds

While specific scheme recommendations are beyond this discussion, selecting funds managed by reputable fund houses with a consistent track record is essential. Look for funds with a clear investment strategy and strong performance history. Consulting a Certified Financial Planner can help tailor your investment choices to your unique needs.

Avoiding Common Pitfalls

Investing in mutual funds requires patience and discipline. Avoid timing the market or making impulsive decisions based on short-term market movements. Stick to your investment plan, and focus on long-term growth.

The Role of a Certified Financial Planner

A Certified Financial Planner (CFP) can provide personalized advice, helping you navigate the complexities of mutual fund investments. They can assist in creating a comprehensive financial plan, ensuring your investments align with your long-term goals.

Staying Informed and Educated

Keeping yourself informed about market trends and mutual fund performance is crucial. Regularly reading financial news, attending investment seminars, and staying updated with fund house communications can empower you to make informed decisions.

Appreciating the Journey

Investing is a journey towards financial independence and security. Your decision to invest Rs 20,000 per month in mutual funds is commendable. It shows foresight and a commitment to securing your future. Celebrate each milestone, and stay focused on your goals.

Health and Wealth: A Balanced Approach

While building wealth is important, maintaining good health is equally crucial. Your annual medical insurance coverage of Rs 35 lakhs is a wise move. It ensures you have a safety net for unforeseen medical expenses, allowing you to focus on your financial goals without worry.

Market Volatility: Staying Calm and Composed

Market fluctuations are a part of investing. During volatile periods, it’s essential to stay calm and avoid making hasty decisions. Trust in your investment plan and remember that market downturns are often followed by recoveries.

Inflation: The Silent Eroder

Inflation erodes the purchasing power of your money over time. Investing in mutual funds, particularly equity funds, helps combat inflation by providing returns that outpace inflation. This ensures your wealth grows in real terms.

Retirement Planning: A Long-Term Vision

Your goal of investing until 58 aligns with a long-term vision for retirement. Building a substantial corpus through mutual funds will provide you with financial independence and the ability to enjoy your retirement years without financial stress.

Regular Investments: The Path to Success

Consistency is key to successful investing. Regular investments through SIPs ensure you stay committed to your financial goals. Even during market lows, continue investing to benefit from lower purchase costs and higher future returns.

Final Insights

Investing in mutual funds is a smart choice for long-term wealth creation. By diversifying across different fund categories and staying committed to your investment plan, you can achieve your financial goals. Your readiness to take on high risk for potentially higher returns is commendable. Keep educating yourself, consult with a Certified Financial Planner, and stay focused on your long-term vision.

Investing is a journey, and each step you take brings you closer to financial independence. Keep up the great work, and enjoy the fruits of your disciplined approach.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7336 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 25, 2024

Asked by Anonymous - Oct 24, 2024Hindi
Money
I need advice on : As i have age of 75 year, can i investment in Shares & Mutual Funds? Any suitable plan of action please
Ans: At the age of 75, financial planning takes a unique approach. Preserving your wealth, maintaining a steady income, and reducing risks are key goals. Your focus should be on securing investments that align with your lifestyle and financial needs. Shares and mutual funds can still play a role in your portfolio with a few considerations.

Why Mutual Funds and Shares Are Still Relevant for You
Mutual funds and shares offer potential growth even at 75. They help keep your wealth growing and protect it from inflation. However, the key lies in the strategy. Selecting the right type of funds with appropriate risk is crucial to avoid unnecessary volatility.

Here’s why these options could benefit you:

Shares can provide growth if selected carefully, focusing on dividend-paying stocks.
Mutual funds offer professional management and diversification, spreading the risk across multiple companies and sectors.
Types of Mutual Funds Suitable for You
Mutual funds come in many varieties. Some of them suit senior investors with a conservative approach. Others aim at generating stable returns with reduced risk. It’s essential to allocate funds across different types for stability and income.

Equity-Oriented Funds: Choose large-cap funds with relatively lower volatility. These focus on established companies, making them safer. Limit exposure to equity to maintain a low-risk profile.

Debt-Oriented Funds: These are safer and offer predictable returns. They can act as an alternative to fixed deposits. Debt funds generate better post-tax returns, particularly for senior citizens.

Hybrid Funds: These funds provide a balance between equity and debt. They minimize risk by allocating assets across both categories. Such funds work well for stability and growth.

Dividend Yielding Funds: These generate periodic income, which could be helpful if you prefer regular cash flows. Funds that distribute dividends can supplement your pension or savings.

Caution Regarding Index Funds and Direct Funds
Investing in index funds may seem easy, but they lack active management. These funds track the market and cannot outperform during downturns. Actively managed funds, on the other hand, try to limit losses through timely adjustments.

Avoiding direct funds is wise at this stage. Direct funds require more monitoring, which can be demanding. Instead, working with a Certified Financial Planner (CFP) through mutual fund distributors (MFDs) ensures proper guidance. Regular funds provide the benefit of ongoing advice and portfolio management suited to your age.

Evaluating Risks with Shares and Market Volatility
Shares carry higher risk than mutual funds. If you choose to invest in shares, opt for companies with a stable track record. Dividend-yielding stocks can provide a consistent income stream. However, market volatility may impact your returns.

To manage risks effectively:

Limit exposure to direct shares if not actively tracking markets.
Diversify by holding both shares and mutual funds to reduce dependence on market fluctuations.
Liquidity and Emergency Planning
At 75, liquidity is essential for unexpected needs. While shares and mutual funds provide growth, ensure part of your portfolio remains easily accessible. Keep a portion of your savings in liquid mutual funds or secure bank deposits for emergencies.

Maintaining sufficient liquidity ensures peace of mind. Emergency funds can cover health expenses or other unforeseen situations.

Taxation Considerations for Your Portfolio
Taxation plays a vital role in deciding which investment to choose. Mutual funds have new taxation rules you need to be aware of:

Equity Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.
Debt Funds: Both LTCG and STCG are taxed as per your income tax slab.
Understanding these rules helps optimize your investment decisions. Proper tax planning ensures that your portfolio delivers better post-tax returns.

Regular Monitoring and Periodic Adjustments
At your age, investments require regular monitoring to ensure alignment with changing needs. A Certified Financial Planner can help you review your portfolio periodically. Adjusting your asset allocation as needed will keep your investments relevant.

Seek advice every six months or annually to ensure that your investments remain suitable. Periodic reviews ensure your money works efficiently, aligned with your evolving financial goals.

Importance of Insurance Cover
Health-related expenses can be a concern in this phase of life. Ensure you have adequate health insurance coverage. Rising medical costs can impact your savings if not managed through insurance.

Check if your current health policy provides sufficient coverage. Explore top-up policies if needed to cover large expenses without dipping into your investments.

Plan for Steady Income Alongside Investments
Mutual funds can be set up to provide systematic withdrawals. This method allows you to generate a regular income. Combining dividend options with systematic withdrawals ensures steady cash flow.

Additionally, if you receive pension income, balancing it with investment returns can help cover living expenses comfortably.

Final Insights
Investing at 75 demands a careful balance between growth and safety. Shares and mutual funds remain relevant if chosen thoughtfully. Limit your exposure to high-risk assets and prioritize funds that align with your risk appetite.

Ensure part of your investments are liquid for emergencies. Use the services of a Certified Financial Planner to manage your portfolio and monitor it regularly. Health insurance plays a critical role in protecting your savings from medical expenses.

By focusing on steady income, risk management, and tax-efficient investments, you can enjoy financial security. A well-planned portfolio ensures that your savings continue to support you comfortably.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Ravi

Ravi Mittal  |475 Answers  |Ask -

Dating, Relationships Expert - Answered on Dec 26, 2024

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Relationship
I am talking to a boy for arranged marriage. He said me that come to Bangalore you will have a good career. But he is also asking me if I can leave my job if I have got some responsibility in life to which I said yes. Then I said that I prefer own cooked food over cook cooked food. Then he asked me if I can cook for 2 people to which I said that I will have to look if I can do. He seems to be supportive when he talks on phone. Is he brain washing me, should I say yes or no. Is he a red flag. What should I do.
Ans: Dear Moumita,
It isn't fair to label someone as a red flag over a few days of conversation; seeing women take up responsibilities of home and disregard their own career or needs might be what he has seen growing up and it's not him being a red flag intentionally. A lot has to do with upbringing. What I can suggest with confidence is that if you love having your own job, and your own financial independence then please be vocal about it. Just because he is asking you to leave your job doesn't mean you have to do it- you are only in the talking phase. You are not married yet. You have ample time to rethink your choice. Cooking and housework shouldn’t just be your responsibility, just like earning and providing shouldn’t only be his. It’s about sharing the load equally. Having said that, I should also mention that every relationship is different, and each couple finds their own way of balancing things. Ultimately, everything boils down to what you are comfortable with- please take some time to figure that out and only then decide whether or not to take this relationship ahead.

Hope this helps.

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Kanchan

Kanchan Rai  |447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 26, 2024

Asked by Anonymous - Dec 25, 2024
Relationship
Hi, My GF of last 2.5 years gets attracted to men very often and shares her feelings with me as well. She developed feelings for a guy a year back and he kissed her once when they were drunk. She said she didn't had time to react and Later they had a talk, she informed me that they chose to be friends, she doesn't seems to in talking terms any more with him. She talks to lot of male friends who she claims are from LGBTQ community which I doubt whether all are or not. I always say she has the freedom to move on any given day but she can't cheat but she doesn't think getting attracted to multiple men and acting on it as cheating . She says, she is free spirited and she is ok even if I visit a prostitute house. She is in her early 30s. She had a crush another guy on insta and said she will definitely try him if he wasn't lot younger than her but later said he is her best friend and she is in constant touch. Lately, she says vibe doesn't match and have problem saying I am her BF. I tried to move on from relationship 2-3 times because of her above traits and now stopped talking since few days. She had both mental and medical issues. Can I trust her and will she have any mental issues again?
Ans: While it’s commendable that she is honest about her feelings and gives you the freedom to make your choices, it’s equally important to consider whether her values and actions align with what you need in a partner. Relationships thrive when there’s mutual respect, understanding, and agreement on boundaries. If her actions or mindset make you feel undervalued or emotionally unsafe, it’s crucial to reflect on whether this relationship is truly serving your well-being.

The fact that you’ve tried to move on multiple times suggests that there is a deeper discomfort within you about the dynamics between you two. Trust is not just about fidelity; it’s about emotional safety, reliability, and mutual respect. If her behavior consistently makes you question her commitment or your place in her life, that erosion of trust can become difficult to rebuild.

As for her mental and medical challenges, it’s important to approach those with empathy, but also with a clear understanding that you cannot "fix" or "heal" someone unless they are actively seeking and working toward their own well-being. If she has not addressed her mental health or continues behaviors that affect the relationship without taking responsibility, it can lead to ongoing strain for you. Her mental health challenges are not excuses for harmful behavior, nor should they become reasons for you to sacrifice your own emotional health.

You’ve already shown patience and willingness to work through these challenges, but the repeated cycles of doubt and frustration may be a sign that the relationship is taking more from you than it’s giving. Ask yourself if you feel supported, valued, and emotionally safe in this partnership. Relationships should bring out the best in you and your partner, not leave you questioning your worth or constantly trying to accommodate behavior that feels unfair.

Taking a step back, as you’ve done now, can give you the clarity to evaluate what you truly want and need in a relationship. If trust feels irreparably broken or if her behaviors and values are fundamentally misaligned with yours, it may be time to consider whether staying in this relationship is the healthiest choice for you. You deserve a partner who respects your boundaries and builds a connection based on mutual trust and understanding.

If you decide to stay, open communication and possibly couples’ therapy could help bridge the gaps. If you choose to move on, trust that this decision is about prioritizing your well-being and finding a relationship that aligns with your values and needs. Either way, your happiness and emotional health should come first.

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Kanchan

Kanchan Rai  |447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 26, 2024

Asked by Anonymous - Dec 23, 2024Hindi
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Relationship
Hi Anu, My husband is in living relationship with another lady since April in another country. At the same time, he acused me as selfish for doing my PhD in my native country and put me in mental trauma by verbally accusing.Also,he was very clever, he step by step get rid of all the things related to our relationship and took bank all the bank fund in my name.After that he blocked me.I had doubts on his extra marital and asked him 1000 times. But he simply insulted and blocked me from all social media eventually. After finishing my PhD pre submission, when i went to meet him, in his place. I found him, shifted to another apartment. But i somehow, found it and there i came to knew, he is staying with a lady there for past months. I broke down and informed all his friends. Now he is threatening me for signing mutual consent, otherwise he will make false allegations and tore my good name..Already he partially did that. When I talked to his friends, he was crooked enough to tell them, i am a psycho, ademant, career oriented lady. I told him i am ready to give him mutual divorce after once we met in person. I want to ask him why he cheated me.but he is not ready to meet, he is asking me to talk to his advocate. What shall I do now?
Ans: While it’s natural to want answers and closure, sometimes people who betray us in such profound ways refuse to provide the accountability we seek. Closure doesn’t always come from the other person. It can come from recognizing that their actions stem from their own flaws and failings, not because of anything lacking in you. It can come from choosing to let go of the need for explanations and focusing instead on rebuilding your own sense of peace and purpose.

You’ve already demonstrated incredible strength by standing up to him and exposing the truth to his friends. That takes courage. But this is also a time to lean into your inner resilience and ensure you’re supported by professionals who can guide you through the legal and emotional complexities. Speaking with a family lawyer who understands the nuances of your situation will help you feel empowered to navigate his threats and protect your rights. At the same time, connecting with a counselor or therapist can offer a safe space to process your emotions and begin to heal from this trauma.

It’s okay to grieve the relationship and the betrayal. It’s okay to feel anger, sadness, or even numbness at times. These emotions are all part of the process of moving forward. Allow yourself to feel them without judgment, but also remind yourself that this pain is temporary and does not define you. You are more than what has been done to you.

When you feel ready, try to shift your focus away from him and his actions and toward your own well-being and future. You’ve worked so hard on your PhD and have built a life full of potential and possibility. This chapter doesn’t have to define the rest of your story. You are capable of creating a life that is free from manipulation and filled with self-respect, joy, and the kind of peace that comes from living authentically.

Lean on the people who believe in you, who see your value, and who can remind you of your strength when you feel unsure. Remember, you don’t have to handle this alone. Whether it’s through professional guidance or emotional support from trusted loved ones, there are paths forward that will help you rise above this situation. You deserve a life where your worth is honored, your boundaries are respected, and your happiness takes center stage.

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Kanchan

Kanchan Rai  |447 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 26, 2024

Asked by Anonymous - Dec 23, 2024Hindi
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Relationship
Hello, I am a 35-year woman from Manali, divorced for three years now. My family is constantly pushing me to get remarried, saying it’s ‘for my own good.’ But honestly, I don’t feel the need for marriage again. I’m financially stable, have great friends, and I genuinely enjoy my independence. Despite explaining this to my family multiple times, they keep bringing up alliances and even guilt-trip me, saying things like, ‘Who will take care of you when you’re older?’ or ‘What will society think?’ I’m exhausted from these arguments and feel like I’m being cornered into something I don’t want. How do I stand firm in my decision while maintaining my relationship with my family? How do I help them understand that being single is a choice, not a problem to fix?
Ans: When speaking to your family, try to approach the conversation from a place of empathy. Acknowledge their intentions by telling them you understand their worries and that they want what they believe is best for you. Express gratitude for their care—it often helps diffuse their defensiveness. However, it’s equally important to gently but firmly assert that your happiness is not dependent on remarriage. Share how content you are with your current life, emphasizing your financial stability, fulfilling friendships, and personal growth.

Sometimes families struggle to accept choices that diverge from traditional norms, often driven by fears about societal perceptions or imagined futures. Reassure them that your decision is rooted in thoughtful consideration and self-awareness, and that you’ve built a life that brings you peace and joy. If they bring up concerns like loneliness or old age, you can address these by expressing how you’ve cultivated strong support systems and how your independence equips you to face challenges.

It might also help to set gentle boundaries. For instance, you could say, “I appreciate that you care for me, but I’d like our time together to focus on enjoying each other’s company instead of discussing remarriage.” It’s okay to redirect conversations or take a break from them when you feel cornered.

Lastly, remember that changing deeply ingrained beliefs takes time. Your family might not immediately understand your perspective, but consistency and calm communication will help over time. It’s not your responsibility to conform to their expectations if doing so diminishes your sense of self. By staying true to your values while showing compassion for their concerns, you’re paving the way for mutual respect and understanding.

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Dr Nandita

Dr Nandita Palshetkar  |36 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Dec 26, 2024

Asked by Anonymous - Dec 19, 2024Hindi
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Health
Dr, I’m 35 years old from Jamnagar, and my husband and I have been trying for a baby for the past year, but nothing seems to be working. I recently visited a fertility clinic in neighborhood , and after a few tests, they mentioned that I might have blocked fallopian tubes. The gynaec also talked about possible treatments like surgery or IVF, but I’m really confused and worried. Should I go for a laparoscopy to check the severity, or are there any other alternatives that could help me? I’m really anxious and just want to understand my options better before making any decisions.
Ans: History noted.
Considering your age 35 years, trying to conceive since, one year and few test done, one of which suggest possibility of tubal blockage, there are various modalities of treatment.
Firstly, you can do laparoscopy to note the severity if blockage and do tubal cannulation.
Tubal cannulation is often the first line of treatment for patients with blocked fallopian tubes because it's a non-invasive procedure that's widely available.
Tubal cannulation is a procedure that can unblock fallopian tubes and is highly successful for proximal tubal blockages, with a success rate of over 80%. However, it may not be successful for all patients and is not recommended for distal tubal occlusions.
This procedure if successful can avoid IVF procedure. Laparoscopy has…
Yes, before ivf get all your blood test, ecg, 2 D echo, xray chest to rule out any illness
Same with your husband to get semen analysis and viral markers with blood sugars to be done.

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Dr Nandita

Dr Nandita Palshetkar  |36 Answers  |Ask -

Gynaecologist, IVF expert - Answered on Dec 26, 2024

Asked by Anonymous - Dec 17, 2024Hindi
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Health
Hello Doctor, I’m in my late 20s, and lately, I’ve been feeling like something’s off with my body. My periods either show up way too early, sometimes not at all for months. And, I’ve been putting on weight even though I haven’t changed my diet or exercise routine. My skin has also turned into a battlefield with acne all over, which I never used to have before. My cousin, who’s around my age, just found out she has PCOS, and her mom (my aunt) went through something similar when she was younger. Now, I’m scared because I’ve been hearing all these horror stories about how it can affect fertility, and I’m not even married yet. What if it’s a family thing and I end up facing the same problems? My mom says, ‘Don’t worry, it’ll be fine,’ but I can’t stop thinking about it. Should I see a gynecologist, or is there another kind of doctor I should be visiting? What tests should I do to get to the bottom of this before it gets worse? Honestly, I’m feeling overwhelmed and just want to know what’s going on before it’s too late.
Ans: Hello, noted your concerns
You are in late 20’s with irregular periods, acne, weight gain,
You are undergoing hormonal imbalance
We need to do certain blood test like
CBC, tsh prolactin fasting insulin level
Hba1c, testosterone level
DHEA, LH FSH ESTRADIOL LEVEL
Amd AMH level to check for fertility level
Usg pelvis to rule out
Pcos
The mainstay treatment. For pcos is lifestyle changes
1) Daily exercise, walks. Zumba, running
2) Good nutritious food with proteins, vitamins, minerals, low carbs and fats
3) good adequate sleep 7 to 8 hours
4) stress management: yoga meditation, breathing exercise
5) supplements to controls effects of pcos
6) low dose OC PILLS TO regularize the cycles

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