NRI Father's Dilemma: Continue Investing in Sukanya Samriddhi for Daughter?

I have invested for my girl child in govt Sukanya samriddhi scheme since 2015.in2025 i became NRI.shall i continue.or stop.or take refund

Ans: AS per Sukanya samriddhi scheme rules only resident indians can invest in you case as and when you become NRI you are not eligible for future investments.
another thing your existing balance in SSY account will generate interest till maturity as same was opened and invested in the status when you were resident indian however post NRI status your interest income from SSY account will be taxable as per rules.

Ans: It’s good that you’ve maintained a Systematic Investment Plan (SIP) for six years. SIPs are a disciplined way to invest regularly without being impacted by market volatility. Your Rs 2000 monthly SIP over this period is a positive step toward building wealth, but let’s carefully evaluate whether continuing or stopping makes sense.

Benefits of Staying Invested
If your SIP is in well-performing funds, continuing can offer significant long-term advantages. Since you are investing for six years already, the compounding effect will start showing better results in the upcoming years.

Here are some reasons to continue:

Rupee Cost Averaging: SIPs ensure that you buy more units when markets are low and fewer units when markets are high. This helps in averaging your costs over time and minimizes the impact of market fluctuations.

Power of Compounding: Staying invested for the long term allows your money to grow exponentially as returns are generated on both your principal and your earlier returns.

Tax Efficiency: If your SIP is in an equity mutual fund, the long-term capital gains tax on profits is lower, and after holding for over one year, you will benefit from tax efficiency.

Long-Term Financial Discipline: Regular investments help build financial discipline, and a six-year SIP shows your commitment to building wealth in a systematic way.

So, if your SIP is aligned with your financial goals, it’s wise to stay invested for a longer period.

Factors to Consider Before Closing the SIP
Before deciding to close your SIP, here are a few factors to review:

Fund Performance: Has your mutual fund consistently underperformed compared to its peers or benchmark? If yes, you may want to switch to a better-performing actively managed fund, but not close the SIP entirely.

Current Financial Situation: Are you in a financial crunch or expecting significant expenses in the near future? If your financial situation has changed, pausing the SIP might be an option.

Market Conditions: If the markets are volatile or bearish, exiting now could lock in losses. SIPs are designed to handle such volatility over time, so exiting due to short-term downturns may not be ideal.

Reviewing these factors will provide you with a clearer direction on whether you should stay invested or pause.

Importance of Reviewing Fund Performance
As a Certified Financial Planner, I recommend that you periodically review the performance of your mutual funds. Here's why:

Consistent Underperformance: If your fund has underperformed its benchmark consistently for over 2 years, it may be time to switch. Moving to an actively managed fund could yield better results in the long run.

Fund Manager Changes: A change in the fund manager or investment strategy can impact the future performance of the fund. Make sure you stay updated on these changes.

Peer Comparison: Compare your mutual fund’s performance with similar funds in the same category. If it lags far behind, explore better-performing funds.

If you find underperformance, don’t immediately close your SIP. Instead, consider switching to a better-performing actively managed mutual fund.

Disadvantages of Index Funds and Direct Funds
You should also avoid switching to index funds or direct mutual fund plans. Here’s why:

Index Funds: While index funds mirror the performance of an index, they don’t beat the market. They merely track it. If the market underperforms, so will the index fund. Moreover, in a volatile market, actively managed funds tend to outperform index funds because professional fund managers make timely decisions based on market conditions.

Direct Funds: These funds lack the expertise and advice provided by a Certified Financial Planner (CFP). Although they might have lower fees, the absence of personalized guidance can lead to poor financial decisions, which can cost more in the long term.

Actively managed mutual funds, overseen by professional fund managers, provide an edge over these options by leveraging expertise to outperform the market.

Diversifying Your SIP Portfolio
If your current SIP is in a single fund or category of funds, it’s essential to diversify for better risk management and returns. Consider the following:

Large-Cap, Mid-Cap, and Small-Cap Funds: Diversifying across market capitalizations helps balance risk. Large-cap funds offer stability, while mid- and small-cap funds provide higher growth potential.

Sectoral or Thematic Funds: While these funds can offer higher returns, they are riskier as they are focused on specific sectors. It’s better to allocate only a small portion of your portfolio here.

Debt Funds: If you are looking for stability, you can allocate a part of your SIP to debt funds. They provide consistent returns, though lower than equity funds.

By diversifying your SIP, you spread your risk while maximizing returns. Ensure the new funds align with your long-term financial goals.

SIP Continuation and Goal Alignment
You should also reassess whether your SIP aligns with your financial goals. At 45, you may be approaching certain life milestones, such as retirement planning, children’s education, or creating an emergency corpus. Here’s how to align your SIP:

Retirement Corpus: If you’re aiming to build a retirement corpus, staying invested for 10-15 years is a good strategy. Equity mutual funds are known to outperform other asset classes over the long term, helping you achieve this goal.

Children’s Education: If you are saving for children’s education, your SIP should be allocated toward a balanced or equity-oriented fund that provides moderate to high returns in 5-10 years.

Emergency Fund: SIPs are not the best option for emergency funds. Instead, liquid mutual funds or fixed deposits are better suited for immediate liquidity needs.

Ensure your SIP is serving your financial objectives effectively.

Balancing SIP and Lumpsum Investments
Since you’re already investing through SIP, you might also want to explore balancing it with a lumpsum investment. SIPs are beneficial for regular investments, but a lumpsum investment at the right time can accelerate wealth creation. For example:

Market Timing: Investing a lumpsum during a market correction can help you buy more units at a lower cost, boosting returns when the market recovers.

Goal-Based Lumpsum Investment: If you have a specific financial goal, such as buying a house or funding your children’s education, you can invest a lumpsum in a suitable fund that matches the timeframe of your goal.

However, avoid relying entirely on lumpsum investments, as SIPs provide the advantage of disciplined investing over time.

Building a Comprehensive Investment Strategy
Instead of merely continuing or closing your SIP, consider creating a more comprehensive investment strategy. Here are some steps to follow:

Review Current Investments: Examine all your existing investments, including your SIP, savings, and other assets. Ensure they are well-diversified and aligned with your financial goals.

Risk Profile Assessment: Assess your risk tolerance based on your age, income, and responsibilities. If you have a high risk tolerance, equity funds can dominate your portfolio. If you are risk-averse, include more debt funds or hybrid funds.

Set Clear Financial Goals: Define short-, medium-, and long-term financial goals. These could include retirement, children’s education, or buying property. Each goal should have a corresponding investment strategy.

Regular Review and Rebalancing: Continuously review your portfolio’s performance and rebalance it every year. Ensure it remains in line with your risk profile and financial goals.

Finally
Continuing your SIP depends on how it aligns with your long-term goals and the fund’s performance. Staying invested for 10-15 years can unlock the full potential of compounding. However, ensure you periodically review the fund and consider diversifying into other categories if necessary. Avoid index funds or direct mutual fund plans, as actively managed funds offer better growth potential over time.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Instagram: https://www.instagram.com/holistic_investment_planners/

Ans: I appreciate your early step into disciplined investing.
Starting SIPs shows long-term thinking.
Beginning small builds confidence and learning.
Your willingness to ask questions is healthy.

» Your Current SIP Action Review
– You started SIP of Rs 3,000 monthly.
– SIP duration is three months.
– Investment is through a bank mobile app.

This shows good initiative.
Early habits shape future wealth.

» Understanding Your Chosen Fund Category
– The fund belongs to small-sized companies category.
– Such funds are high risk.
– Such funds give high volatility.

Returns can be uneven yearly.
Patience is very important here.

» Suitability Of Small Company Funds
– Small companies grow faster sometimes.
– They also fall harder during corrections.
– Not suitable as first-only investment.

Exposure should be limited initially.
Balance is essential.

» Starting Early
– You started without waiting for perfection.
– Many delay investing unnecessarily.
– Action matters more than perfection.

This mindset helps long-term success.

» Risk Awareness Is Necessary
– Small company funds fluctuate sharply.
– Short-term losses are common.
– Emotional control is required.

Three months is too short to judge.
Time horizon should be long.

» Minimum Suggested Time Horizon
– Such funds need at least seven years.
– Shorter periods cause disappointment.
– SIP helps reduce timing risk.

Consistency matters more than returns initially.

» Bank App As Investment Platform
– Bank apps are generally safe.
– Transactions are regulated.
– Holdings are stored with registrars.

Platform safety is not the main risk.
Investment choice matters more.

» Limitations Of Bank Apps
– Limited guidance provided.
– Product pushing is common.
– Advice is not personalised.

Banks focus on convenience.
Planning depth is usually missing.

» Bank Staff Support Limitations
– Staff change frequently.
– Knowledge levels vary.
– Long-term accountability is absent.

This affects continuity of advice.

» Safety Of Investments Versus Platform
– Funds are held in your PAN.
– Platform failure does not erase investments.
– Units remain safe with fund house.

So platform safety fear is minimal.
Decision quality matters more.

» Planning Another SIP Thought
– You want another Rs 3,000 SIP.
– Total SIP becomes Rs 6,000 monthly.

This is positive growth behaviour.
But structure needs correction.

» Platform Comparison Perspective
– You plan using another app.
– Such apps promote self investing.
– Guidance quality is limited.

Ease should not replace planning.

» Direct Platform Reality Check
– Such apps promote direct plans.
– Expense difference looks attractive.
– But hidden costs exist.

Cost is not only expense ratio.
Mistakes cost more.

» Disadvantages Of Direct Plans
– No personalised advice.
– No behaviour guidance during falls.
– No portfolio review support.

Investors act emotionally without guidance.
This hurts returns badly.

» Decision Errors In Direct Investing
– Panic selling during market falls.
– Overconfidence during rallies.
– Frequent fund switching.

These mistakes destroy compounding.
They are very common.

» Lack Of Accountability In Apps
– Apps do not call you.
– Apps do not stop wrong actions.
– Responsibility lies fully on investor.

This is risky for beginners.

» Why Regular Plans Add Value
– Guidance helps discipline.
– Asset allocation stays balanced.
– Behavioural mistakes reduce.

Value is beyond commission.
Support matters during volatility.

» Role Of MFD With CFP Credential
– Certified Financial Planner gives structure.
– Advice aligns with goals.
– Long-term handholding exists.

This improves investment experience.
Returns become smoother.

» Cost Versus Value Perspective
– Direct plans save small percentage.
– Wrong decisions lose big percentages.

Net outcome matters more.
Peace of mind matters too.

» Your Current Portfolio Concentration Risk
– Only one equity category exposure exists.
– Risk is concentrated.
– Diversification is missing.

This increases volatility risk.
Balance is needed urgently.

» Importance Of Diversification
– Different funds behave differently.
– Market cycles impact unevenly.
– Balance reduces shock.

Diversification improves consistency.

» Ideal SIP Structure For Beginners
– One aggressive component.
– One stable growth component.
– One flexible allocation component.

This spreads risk evenly.
Comfort increases automatically.

» Why Avoid Multiple Apps
– Tracking becomes confusing.
– Discipline weakens.
– Reviews become difficult.

One guided platform is better.
Simplicity improves adherence.

» Data Security Perspective
– Apps are regulated.
– Data security standards exist.
– Risk is minimal.

But advice quality remains missing.

» Behaviour During Market Corrections
– Small company funds fall sharply.
– Beginners panic easily.
– SIP stoppage becomes tempting.

Guidance prevents wrong reactions.

» Emotional Support Value
– Markets test patience.
– Fear appears suddenly.
– Someone must guide.

Apps cannot replace humans here.

» Why Starting With Only Small Companies Is Risky
– Volatility is high.
– Returns are uneven.
– Confidence may break early.

Balanced start builds trust.

» Gradual Exposure Approach
– Start with core stability.
– Add aggression slowly.
– Increase risk with experience.

This improves journey comfort.

» SIP Amount Increase Strategy
– Rs 6,000 is fine initially.
– Increase annually with income growth.
– Discipline matters more than amount.

Time creates wealth here.

» Tax Awareness Brief
– Equity funds tax applies on selling.
– Long-term gains have limits.
– Short-term gains are taxed higher.

Holding longer improves efficiency.

» Avoid Frequent Changes
– Switching funds harms compounding.
– Costs increase silently.
– Discipline reduces regret.

Stick to strategy firmly.

» Monitoring Frequency
– Review once a year.
– Avoid monthly checking.
– Noise causes confusion.

Long-term vision matters.

» Avoid Social Media Influence
– Tips are often misleading.
– Past returns are highlighted.
– Risk is hidden.

Structured advice avoids traps.

» Role Of Goal Mapping
– Define why you invest.
– Time horizon matters.
– Risk choice depends on goals.

Without goals, investing feels stressful.

» Emergency Fund Reminder
– Keep emergency money separate.
– Do not mix with SIPs.
– Liquidity is essential.

This prevents SIP stoppage.

» Insurance And Protection Check
– Health cover should be adequate.
– Life cover matters if dependents exist.

Protection supports investment continuity.

» Long-Term Wealth Mindset
– Wealth grows slowly.
– Patience beats intelligence.
– Process beats prediction.

Consistency wins always.

» Common Beginner Mistakes To Avoid
– Chasing last year returns.
– Using too many apps.
– Ignoring allocation balance.

Awareness saves money.

» How A CFP Helps In SIP Planning
– Designs suitable allocation.
– Reviews yearly changes.
– Guides during volatility.

This partnership adds value.

» Confidence Building Perspective
– You already started investing.
– You are learning actively.
– Improvement is natural.

This journey will get smoother.

» Platform Safety Final View
– Bank app is safe.
– App based platforms are safe.
– Investment safety lies with fund house.

Decision quality matters more.

» Final Insights
– Starting SIP is a good step.
– Small company exposure is risky alone.
– Diversification is necessary now.
– Avoid self-direct platforms initially.
– Regular plans with CFP guidance add value.
– Consistency and discipline build wealth.

You are on the right path.
Correct structure will improve outcomes.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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