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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jul 11, 2022

Mutual Fund Expert... more
Dharman Question by Dharman on Jul 11, 2022Hindi
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I am holding Nippon India focused equity fund growth plan growth option. My investment SIP value is 94850. SIP has expired. My current market value is 190868. Shall I hold or redeem? Please advise.

Ans: Please hold

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Ramalingam

Ramalingam Kalirajan  |7550 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 19, 2024

Asked by Anonymous - Aug 14, 2024Hindi
Money
Sir, as a student I am putting 100rs sip in aditya birla sunlife psu direct growth equity fund, but its only been 15 days since I've started and I've incurred 5 rs loss. Should I continue with this plan for 5 year or should I redeem it?
Ans: First and foremost, it's important to understand that mutual fund investments, especially those in equity, are subject to market volatility. A loss of Rs. 5 over just 15 days is not uncommon and doesn’t necessarily reflect the long-term potential of your investment. Mutual funds, particularly equity-based ones, are designed for long-term wealth creation, and such short-term fluctuations should not deter you from your financial goals.

Importance of Your Investment Horizon
You've chosen to invest in the Aditya Birla Sun Life PSU Direct Growth Equity Fund with a horizon of 5 years. This is a reasonable time frame for equity investments to potentially grow. However, equity investments can be volatile in the short term, and it's crucial to maintain patience and discipline with your investments.

Benefits of Continuing Your SIP
Rupee Cost Averaging: By continuing your SIP (Systematic Investment Plan), you are buying more units when prices are low and fewer units when prices are high. This averaging effect can lower the overall cost per unit over time, which benefits you when the market eventually rises.

Compounding Over Time: Staying invested for the long term allows your investments to benefit from compounding. This means the returns you earn on your investment will also start generating returns, leading to exponential growth over time.

Market Recovery: Markets go through cycles of highs and lows. By remaining invested, you give your investment time to recover and potentially grow, which is essential for achieving your long-term financial goals.

Reassessing Your Fund Choices
Before making any decision to continue or redeem your investment, it’s wise to take a closer look at your current fund choice:

Fund Performance: Analyze the historical performance of the Aditya Birla Sun Life PSU Direct Growth Equity Fund over 3, 5, and 10 years. While past performance is not indicative of future results, it can give you insight into how the fund has performed across different market cycles.

Fund Objective: Ensure that the fund’s investment objective aligns with your own financial goals. PSU equity funds focus on public sector companies, which may have different risk and return profiles compared to more diversified equity funds. Understanding this will help you determine if this is the right fund for you.

Why You Might Want to Avoid Direct and Sectoral Funds
While direct funds may seem appealing due to their lower expense ratios, they come with certain drawbacks:

Lack of Advisory Support: Direct funds do not offer the same level of advisory support as regular funds. As a student or a beginner investor, having access to the guidance of a Certified Financial Planner (CFP) can be crucial. A CFP can help you choose the right funds, adjust your portfolio based on market conditions, and align your investments with your financial goals.

Market Timing Risks: Direct investors often make decisions based on short-term market movements, which can lead to poor timing and reduced returns. Investing through a CFP can help you avoid such pitfalls and ensure a disciplined investment approach.

Similarly, sectoral funds, like a PSU equity fund, focus on specific sectors of the economy, which can be risky:

High Risk and Volatility: Sectoral funds are concentrated in one sector, making them more volatile and riskier compared to diversified equity funds. If the sector underperforms, your entire investment may suffer.

Limited Diversification: Sectoral funds lack diversification, which is a key principle in reducing risk in an investment portfolio. A more diversified fund can spread out the risk across various sectors and companies.

Considering a More Balanced Approach
For a beginner investor, or even for someone with limited time to actively manage investments, a balanced and diversified approach is generally more advisable. Here’s why:

Diversified Equity Funds: These funds spread investments across various sectors and companies, reducing the risk associated with any one sector. They provide a safer way to benefit from the growth potential of equities while mitigating some of the risks.

Regular Funds Through MFDs with CFP Credential: By investing in regular funds through Mutual Fund Distributors (MFDs) with CFP credentials, you gain access to professional advice. They can help you choose funds that align with your risk tolerance, investment horizon, and financial goals. They can also provide ongoing support, making adjustments to your portfolio as needed.

Aligning Your Investments with Financial Goals
Given your long-term goal of a 5-year investment horizon, it’s important to align your fund choices with this timeline. Equity funds generally require a minimum of 5-7 years to realize their full potential. Choosing funds that offer diversification and professional management can help you achieve your goals more effectively.

Final Insights
It's important not to make hasty decisions based on short-term performance. Investing in mutual funds, particularly through SIPs, is a long-term commitment. The Rs. 5 loss you've observed is a normal part of the investment journey. The key is to stay the course and focus on your long-term goals.

Consider avoiding direct and sectoral funds due to their inherent risks and the lack of advisory support. Opting for diversified equity funds and regular funds through a Certified Financial Planner can provide you with a more balanced and safer investment strategy.

If you're uncertain about your investment choices or need personalized advice, consulting a CFP can be beneficial. They can provide you with the necessary guidance to optimize your investments and align them with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1442 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 19, 2025

Asked by Anonymous - Jan 13, 2025Hindi
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Hello..I met him on Jan 4 th of 2024.. this year he is not with me. We were in a relationship for almost 8 months. Everything was fine and blissful. Last December he told me he needs some time to decide about our relationship. First of all it was a blow to my confidence..I thought he will stay by my side no matter what it is. After a few days he told me he wants to move on. I was in no contact for 10 days. After I went back and called him..he told me he is talking with another girl and he likes her and going to marry her. My world was broken. The reason for this? Our horoscopes doesn't match also he brings up caste differences even though there is not much difference. We were each other's best friends cared and loved each other so much. Stood by eachother's tough times..I begged him I cried d...I lost all my self respect..I somehow wanted to keep him with me...but he threw me away. It pains a lot. I haven't recovered yet..but he is going to marry her very soon...the toughest part here is I have to see him everyday atleast for the next 6 months. How will I handle if he gets engaged? How will I handle when he gives out his wedding cards? I have big goals in life I want to achieve them. But I am terrified what if it all crumbles because of my inability to handle this pain and suffering? What should I do? Your suggestion is very much needed.
Ans: Dear Anonymous,
You did invest too much of yourself in him; but who can stop the way feelings move, right?
As hard as it maybe to accept this reality, move on...initially, it will be painful, but it's not worth losing yourself to anyone. Protect your identity and know that it does not stem from anyone or anything BUT it's YOU who defines it.
Maybe the past year that you lost time and could not focus on your goals, this year can be your year. Let him do what he needs to; why focus on someone who did not have the decency or courage to tell you things on your face. What will you gain by actually being with a person like that? I am sure you deserve much more...
Your goals and aspirations need you; go for it!

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

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Anu

Anu Krishna  |1442 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 19, 2025

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The seconds of time during taking action..I get into the overthinking/over-analysing thoughts... 1. Imaginative: Where I becom's the character & live life(see images, speak..) in those..like being rich,powerfull,disciplined,wife,kids....things which I want/perceive from social media...+ memos of past also.. 2. Stuck: Where I becom's a "OBJECT" & voices + images of brain guides me to quit task's when doing things/challenging...by saying.. *What this thing(task/book..) gonna benefit you? *Don't do it, you will do worse/fail..people gonna judge/laugh to you...look yourself!!..no good face, no good dress, u don't hv courage/skill to do that thing. 3. Coping: "Quit it" & use Mobile(songs,reels,yt videos..) to stop/distract myself from those dark clouds. i) What/How [solution] to don't get stuck in those next time. ii) How to use that overthinking for my advantage.. with hving control. iii) I tried to fill the possible voids by dress/looks but things were same..so it's internal.. What to do for that?
Ans: Dear Work,
Overthinking and over processing never helped anyone. Focus on your self-talk and change that.
- Journaling
- Sports
- Art work
- Meditation
- Breathwork
These are a few ways in which you can attempt to slow down the mind from racing thoughts. Once that happens, work on your self-talk to make it more useful where you start to direct yourself towards what you want to do.

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

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Ramalingam

Ramalingam Kalirajan  |7550 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 19, 2025

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Hello Sir. I have Rs1,00,000 that I want to invest as a lump sum in SBI Mutual Funds for the long term (15+ years). Considering that SBI has one of the largest Asset Management Companies (AMCs), could you please recommend which SBI Mutual Funds would be suitable for such an investment and have the potential to deliver good returns over this period? I am doing this investment for my daughter's education.
Ans: Your decision to invest Rs 1,00,000 for your daughter's education is commendable. A long-term horizon of 15+ years offers significant growth potential through mutual funds. Below are insights and recommendations to guide your investment.

Why SBI Mutual Funds?

SBI is one of India’s largest and most trusted AMCs.

They offer a wide range of funds suitable for different goals and risk levels.

Their consistent performance track record reflects sound fund management.

Key Factors to Consider for Long-Term Investments

Investment Objective:

Education is a critical financial goal.

Focus on wealth accumulation through equity-oriented funds.

Risk Appetite:

Equity funds involve volatility but offer high growth.

Ensure alignment with your risk tolerance.

Fund Type Selection:

Choose funds based on asset allocation and diversification.

Evaluate the performance of large-cap, mid-cap, and hybrid funds.

Tax Implications:

LTCG over Rs 1.25 lakh is taxed at 12.5%.

Understand taxation for equity and debt funds.

Suggested Fund Categories for Your Investment

1. Large-Cap Funds

Invest in funds focusing on well-established companies.

They offer stability and moderate risk.

Suitable for conservative investors.

2. Mid-Cap Funds

These funds focus on medium-sized companies with high growth potential.

They are riskier than large-cap funds but offer higher returns.

Suitable for investors willing to take calculated risks.

3. Flexi-Cap Funds

Invest across large, mid, and small-cap companies.

They offer diversification and the flexibility to adapt to market conditions.

Ideal for investors seeking balanced growth.

4. Equity-Linked Savings Schemes (ELSS)

ELSS funds offer tax benefits under Section 80C.

They have a lock-in period of three years.

Suitable for investors aiming for tax-efficient long-term growth.

5. Hybrid Funds

Invest in a mix of equity and debt instruments.

They offer stability through debt and growth through equity.

Suitable for moderate-risk investors.

Benefits of Investing Through a Certified Financial Planner (CFP)

CFPs offer expert guidance tailored to your goals.

They help monitor fund performance regularly.

They ensure optimal fund selection and rebalancing.

Regular plans through CFPs provide dedicated service and support.

Why Choose Actively Managed Funds?

Active funds aim to outperform benchmarks through expert fund management.

They offer higher potential returns compared to index funds.

Fund managers actively adjust portfolios based on market trends.

Ideal for long-term investors seeking growth.

Key Steps to Start Your Investment

Define your financial goal clearly.

Consult with a CFP for fund selection.

Review the chosen fund’s historical performance and portfolio composition.

Use SIPs for additional investments to benefit from rupee cost averaging.

Monitor your portfolio periodically to ensure alignment with your goals.

Final Insights

Investing in SBI Mutual Funds is a smart choice for your daughter’s education. Selecting the right fund category ensures growth and stability over 15+ years. Partnering with a Certified Financial Planner ensures professional guidance and optimal returns. Stay committed to your goal, review your investments regularly, and focus on long-term growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7550 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 19, 2025

Asked by Anonymous - Jan 19, 2025Hindi
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Money
I am an NRI with an NRO trading account through Zerodha, but I cannot trade in F&O and Intraday. I have been filing my returns consistently though I have had no income in India in the last 10 years. But I have investments in MF, PPF, NPS, Medical and Life Insurances, ULIPs which were initiated while working in India and had tax saving options and it is being continued. I would like to trade in F&O and Intraday. My wife is not employed till date and has a regular savings account with the Bank which is Resident Indian normal account. She has never filed any IT returns since as there was no income and transactions from my side were only for family maintenance. My question is, can I open a regular trading account in her name so that we can do trading in F&O and Intraday? What are the necessary things which I need to follow for filing IT returns and how my investments can be helpful to file returns through her account. She doesn't have any investments except LIC & Health Insurance policies in her name for which I pay from myside.
Ans: Yes, you can open a trading account in your wife's name to trade in F&O and intraday; however, there are a few important considerations:

Steps to Open a Trading Account:
Convert Savings Account to a Trading-Compatible Account: Ensure her existing bank account supports trading transactions. If not, convert it to a trading-compatible savings account.
KYC Compliance: Complete her KYC process with updated details, including PAN, Aadhaar, and a valid address proof.
Link Demat and Trading Account: Open a Demat and trading account in her name with a broker that supports F&O and intraday trading for resident individuals.
Nominate a Separate Source of Funds: Ensure the funds transferred to her account are not directly linked to your NRI account to avoid legal and taxation issues.
Tax Implications:
Income from Trading: Any income generated from trading in her account will be considered her income. Since she has no other sources of income, her income from trading may be taxed as per the slab rate applicable to her.
Gift Declarations: Funds transferred to her account can be considered a gift. Gifts from a spouse are exempt from tax, but the income generated (through trading) will be clubbed with your income under Section 64 of the Income Tax Act.
Filing IT Returns:
She will need to file her own ITR if her total income (including trading profits) exceeds the taxable limit (Rs. 2.5 lakhs for individuals below 60).
Any clubbed income will still require an ITR to declare the source and details.
Investments for IT Filing:
Investments in her name (e.g., LIC and health insurance) can help:

Claim deductions under Section 80C for LIC premiums.
Claim deductions under Section 80D for health insurance premiums.
Alternative Suggestions:
Joint Investments: Instead of opening an account in her name, consider using investments in her name (LIC, insurance, etc.) to improve her financial standing without additional compliance.
Professional Advice: Engage a CA familiar with NRI taxation and clubbing provisions to ensure full compliance and proper structuring.
If you'd like detailed help with tax planning, compliance, or investment strategies, let me know!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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