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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Sep 09, 2021

Mutual Fund Expert... more
Vivek Question by Vivek on Sep 09, 2021Hindi
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We have made these investments in our family portfolio.

We would like to continue to invest for 15 years but want to reduce the number of funds.

Could you please suggest which ones we should stop and which ones we should keep investing in?

Apart from Mirae Bluechip, the others are relatively new. Should we close or hold for three more years?

Category Mutual Fund Invested Current Value Total Gain SIP Amount
Large & Mid Cap Mirae Bluechip Rs 2,59,995 Rs 4,02,216 Rs 1,42,221 Rs 8,000
Aggressive Hybrid Mirae A Hybrid Equity Rs 52,997 Rs 56,757 Rs 3,760 Rs 1,000
Large Cap Axis Bluechip Rs 47,497 Rs 49,709 Rs 2,212 Rs 5,500
Contra Invesco India Contra Rs 29,998 Rs 32,419 Rs 2,421 Rs 1,000
Hybrid DSP Dynamic Asset Allocation Rs 26,998 Rs 27,800 Rs 802 Rs 500
Mid Cap Axis Midcap Rs 32,498 Rs 37,166 Rs 4,668 Rs 2,500
Aggressive Hybrid Canara Robeco Equity Hybrid Rs 30,998 Rs 33,796 Rs 2,798 Rs 2,000
Flexi Cap Parag Parikh Long Term Equity Rs 25,998 Rs 30,659 Rs 4,661 Rs 1,000
Equity-ESG Mirae ESG Fund of Fund Rs 25,998 Rs 27,430 Rs 1,432 Rs 2,000
Focused SBI Focused Equity Rs 17,500 Rs 19,890 Rs 2,390 Rs 500
Midcap DSP Midcap Rs 22,499 Rs 25,859 Rs 3,360 Rs 1,500
FoF Motilal Oswal Nasdaq Rs 34,998 Rs 36,164 Rs 1,166 Rs 5,000
Corporate Bond Kotak Corporate Rs 18,452 Rs 18,735 Rs 283 Rs 1,000
Small Cap SBI Small Cap  Rs 35,000 Rs 41,103 Rs 6,103 Rs 5,000
Value Quantum Long Term Equity  Rs 13,999 Rs 15,184 Rs 1,185 Rs 1,000
Equity ESG Quantum India ESG Equity  Rs 13,999 Rs 14,942 Rs 943 Rs 1,000
Flexi Cap Axis Flexi Cap Rs 11,999 Rs 12,643 Rs 644 Rs 500
Large Cap Aditya Birla Sun Life F Equity Rs 6,000 Rs 6,831 Rs 831 Rs 1,000
FoF Mirae Asset NYSE FANG+ ETF Rs 4,956 Rs 4,934 Rs -22  

Ans: There are too many funds in your portfolio. However, most of the funds are decent. You may continue for three years.

 

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  |8319 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 27, 2024

Asked by Anonymous - Jun 27, 2024Hindi
Money
Dear Sir, I have been investing for my 2 child's education, marriage and my retirement. My age: 41 years, Please suggest if any changes required in below portfolio and if I could meet my goals. 1st Child education: 8 years Present cost: 30 Lakh 1st Child marriage: 15 years Present cost: 20 lakh 2nd Child education: 18 years Present cost: 30 Lakh 2nd Child marriage: 27 years Present cost: 20 lakh Retirement Income: 14 years Current Need: 1 Lakh monthly --- Investment value: NPS: 22 lakh also 17000 rs sip EPF: 34 lakh also 40000 rs sip PPF: 10 lakh Direct Equity: 2 lakh 1.5 Cr life insurance 10+90 lakh health insurance Need specific advice on how to dump underperforming mutual fund? Need to pay huge taxes on redemption? That's the reason didn't sale those funds. 1. Miare Large&Midcap 35 lakh(12.5 k sip) 2. Mirae Large cap: 30 Lakh 10ksip 3. ICICI bluechip: 46 lakh 20k sip 4. Axis Midcap: 39 lakh 10k sip 5. Nippon Growth: 33 lakh 20ksip 6. Axis25: 22 lakh 7. Nippon multicap: 12 lakh 20ksip 8. SBI focused: 65 lakh 10ksip 9. HSBC Smallcap: 26 lakh 10ksip 10.Nippon smallcap: 52 lakh 30ksip 11. Axis long term equity: 20 lakh
Ans: You’ve done an admirable job planning for your children’s education and marriage, as well as your own retirement. Setting clear goals with timelines and current costs is essential for evaluating your portfolio and making necessary adjustments.

Children’s Education and Marriage Goals
Your goals for your children’s education and marriage are well-defined:

1st Child Education: 8 years from now, with a present cost of Rs 30 lakh.

1st Child Marriage: 15 years from now, with a present cost of Rs 20 lakh.

2nd Child Education: 18 years from now, with a present cost of Rs 30 lakh.

2nd Child Marriage: 27 years from now, with a present cost of Rs 20 lakh.

Retirement Income Goal
Your retirement goal is to have a monthly income of Rs 1 lakh starting 14 years from now. This is essential for maintaining your lifestyle post-retirement.

Current Investment Portfolio Analysis
Your portfolio comprises NPS, EPF, PPF, direct equity, and several mutual funds. Let’s break down each component and evaluate its suitability.

National Pension System (NPS)
You have Rs 22 lakh in NPS and a SIP of Rs 17,000. NPS is a good long-term investment for retirement with tax benefits under Section 80C and 80CCD(1B). However, it’s primarily locked until retirement, limiting liquidity. NPS is a low-cost option and provides a mix of equity, corporate bonds, and government securities, but its returns are market-linked, meaning they can fluctuate.

Employees’ Provident Fund (EPF)
With Rs 34 lakh in EPF and a SIP of Rs 40,000, EPF is another solid investment for retirement. It offers a decent return with tax benefits, but like NPS, it lacks liquidity until retirement. EPF provides a fixed interest rate, which is reviewed annually by the government, and it's relatively safer compared to market-linked products.

Public Provident Fund (PPF)
Your PPF has Rs 10 lakh. PPF is a safe investment with tax benefits, but it has a lock-in period of 15 years. It’s suitable for long-term goals but not very flexible. PPF offers a fixed rate of return, which is revised quarterly by the government. It's entirely tax-free and risk-free but doesn't provide returns as high as equity investments.

Direct Equity
You have Rs 2 lakh in direct equity. Direct equity can offer high returns but comes with high risk. It's important to ensure diversification to manage this risk effectively. Direct equity investments require a good understanding of the market and individual companies. It's crucial to monitor these investments regularly and be ready to exit when necessary.

Mutual Funds
Your mutual funds portfolio is quite extensive. Here's a detailed analysis of each scheme:

Large & Midcap Funds
Scheme 1: Large & Midcap Fund
Investment Amount: Rs 35 lakh
SIP: Rs 12,500
Large & Midcap funds provide a balance between stability and growth by investing in both large-cap and mid-cap stocks. These funds can potentially offer higher returns compared to pure large-cap funds but come with slightly higher risk. Review the performance of this fund over the past 3-5 years and compare it to its benchmark and peers. If it’s consistently underperforming, consider switching to a better-performing fund.

Large Cap Funds
Scheme 2: Large Cap Fund
Investment Amount: Rs 30 lakh
SIP: Rs 10,000
Large Cap funds invest in large, established companies and generally provide more stability but potentially lower returns than mid and small-cap funds. These funds are less volatile and are suitable for conservative investors. Check the fund's track record against its benchmark and peers. Consistent underperformance may warrant a switch to a better-performing large-cap fund.

Scheme 3: Bluechip Fund
Investment Amount: Rs 46 lakh
SIP: Rs 20,000
Bluechip funds, a subset of large-cap funds, invest in the most stable and financially sound companies. These funds are ideal for risk-averse investors. Assess the performance of this fund in comparison to other bluechip funds. If it’s underperforming, consider alternatives.

Midcap and Smallcap Funds
Scheme 4: Midcap Fund
Investment Amount: Rs 39 lakh
SIP: Rs 10,000
Midcap funds invest in medium-sized companies with high growth potential but also higher risk. They are suitable for investors with a moderate to high-risk appetite. Compare this fund’s performance to other midcap funds. If it’s not meeting expectations, a switch might be necessary.

Scheme 5: Growth Fund
Investment Amount: Rs 33 lakh
SIP: Rs 20,000
Growth funds focus on companies expected to grow at an above-average rate. These can include mid and small-cap companies. Evaluate this fund’s performance, especially its growth metrics. Underperformance over a sustained period should prompt a review.

Scheme 6: Multicap Fund
Investment Amount: Rs 12 lakh
SIP: Rs 20,000
Multicap funds invest across large, mid, and small-cap stocks, providing diversification. They are suitable for investors looking for a mix of stability and growth. Review the performance across market cycles and compare it to other multicap funds.

Scheme 7: Focused Fund
Investment Amount: Rs 65 lakh
SIP: Rs 10,000
Focused funds invest in a limited number of high-conviction stocks. They can offer high returns but come with higher risk due to lack of diversification. Assess the fund’s stock-picking ability and its returns relative to its focused peers.

Scheme 8: Smallcap Fund 1
Investment Amount: Rs 26 lakh
SIP: Rs 10,000
Smallcap funds invest in smaller companies with high growth potential but also high risk. Suitable for investors with a high-risk appetite. Check the fund’s performance during market downturns and its overall return consistency.

Scheme 9: Smallcap Fund 2
Investment Amount: Rs 52 lakh
SIP: Rs 30,000
Another smallcap fund in your portfolio. Similar to the first one, ensure you’re not overexposed to this segment. Diversify if necessary and review the fund’s performance critically.

ELSS (Equity Linked Savings Scheme)
Scheme 10: Long Term Equity Fund
Investment Amount: Rs 20 lakh
ELSS funds provide tax benefits under Section 80C with a lock-in period of 3 years. They invest primarily in equities and have the potential for high returns. Evaluate this fund’s performance against other ELSS funds, considering both returns and the lock-in period.

Insurance
You have life insurance worth Rs 1.5 crore and health insurance of Rs 10 lakh + Rs 90 lakh. This coverage seems adequate. Ensure your health insurance covers critical illnesses as well.

Recommendations for Mutual Funds
Underperforming Funds
It’s essential to review and potentially dump underperforming mutual funds. Look for funds consistently underperforming their benchmarks over 3-5 years. Consider switching to better-performing funds even if it means paying capital gains tax.

Tax Implications
Yes, redemption might incur taxes. However, long-term capital gains from equity mutual funds are taxed at 10% above Rs 1 lakh in a financial year. It’s often worth paying the tax to switch to better-performing funds.

Diversification
Ensure your portfolio is well-diversified across large-cap, mid-cap, and small-cap funds. This will help balance risk and return.

Steps to Optimize Your Portfolio
1. Review and Realign Mutual Funds
Assess the performance of your current mutual funds. Exit underperforming funds and reallocate those investments into well-performing funds aligned with your goals.

2. Balance Risk and Return
Ensure your investments in equity, debt, and hybrid funds are balanced according to your risk tolerance and goals. Diversification is key to managing risk.

3. Regular Monitoring
Keep track of your portfolio regularly. Market conditions change, and regular reviews can help you make timely adjustments.

4. SIP Adjustments
Evaluate your SIP amounts and adjust them if necessary. Ensure that your SIPs are aligned with your financial goals and timelines.

Specific Advice for Mutual Funds
Large & Midcap Funds
These funds are good for balancing growth and stability. Ensure the funds you hold in this category are performing well against their benchmarks.

Large Cap Funds
These funds are generally more stable. However, review their performance to ensure they’re meeting your expectations.

Midcap and Smallcap Funds
These funds offer higher growth potential but with higher risk. Ensure these funds are performing well and fit your risk tolerance.

Sectoral and Thematic Funds
If you hold any sectoral or thematic funds, review their performance carefully. These funds can be more volatile and require close monitoring.

Managing Tax Implications
Long-Term Capital Gains (LTCG) Tax
Long-term capital gains from equity mutual funds over Rs 1 lakh are taxed at 10%. Plan your redemptions to minimize tax liability.

Systematic Withdrawal Plan (SWP)
Consider using an SWP to manage redemptions and spread the tax liability over multiple financial years.

Final Insights
You’ve done a commendable job planning for your financial goals. Regularly review and realign your portfolio to stay on track. Exit underperforming mutual funds and reinvest in better options even if it means paying taxes. Balance your risk and return through proper diversification. Keep monitoring your portfolio and make adjustments as needed.

Investing is a continuous process that requires regular attention and adjustments. With careful planning and execution, you can achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |8319 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 14, 2024

Asked by Anonymous - Nov 13, 2024Hindi
Money
Hi sir Kindly review my portfolio.. Investing below amount in SIP 1)Large cap - Axis 4500 Nippon 4500 2) Flexi cap - Parag parikh - 3000 Icici - 2500 3) Mid cap - Motilal - 2500 Aditya birla - 500 Kotak - 500 4) Small cap Tata - 1500 My goal for investing is my child education, child marriage and Retirement funds I planning to invest for next 15 years Kindly suggest which and all mutual fund I have to continue and remove for better returns.. Thank you
Ans: It’s great to see that you’re committed to securing funds for your child’s education, marriage, and retirement. These are critical milestones, and with the right approach, your investments can help you achieve them effectively.

Investment Goals and Approach

You have clear long-term objectives, which is ideal. Planning with specific goals like education, marriage, and retirement brings purpose to your investment journey. Given the 15-year investment horizon, you can take advantage of compounding benefits, especially with equity mutual funds. However, let’s ensure your portfolio is optimized for growth, risk, and tax efficiency.

Evaluating Your Mutual Fund Choices

Let’s look at your current investments across various categories:

1. Large Cap Funds
Large-cap funds provide stability, as they invest in established companies with relatively lower volatility. However, there can be limited scope for very high growth in large caps compared to mid or small caps.

You’re invested in two large-cap funds. It’s often advisable to focus on one high-performing large-cap fund to avoid overlap and unnecessary diversification.

Consider retaining a large-cap fund that has a consistent track record, active fund management, and strong research backing.

2. Flexi Cap Funds
Flexi-cap funds offer flexibility by investing across market caps. This allows the fund manager to capture growth opportunities in any segment of the market.

Holding two flexi-cap funds is fine, as it balances large and mid-cap stocks, offering both stability and growth. However, evaluate each fund’s performance and select one if you feel any duplication in returns.

3. Mid Cap Funds
Mid-cap funds offer growth potential but come with higher risk. Given your long-term horizon, they can be beneficial.

You currently have three mid-cap funds. It might be better to consolidate into one or two top-performing funds in this category to reduce excessive overlap and diversify across sectors rather than just fund names.

4. Small Cap Fund
Small-cap funds are suitable for aggressive growth but can be highly volatile. It’s wise to limit exposure to small caps, as they tend to fluctuate significantly, especially over shorter timeframes.

Given your portfolio composition, your allocation to small caps is moderate, which seems appropriate. However, ensure you are comfortable with the high-risk nature of small caps, especially if the market faces downturns.

Analysis of Direct vs. Regular Funds

Opting for direct funds might appear attractive due to lower expense ratios, but it’s crucial to weigh the potential downsides:

Lack of Guidance: Direct funds lack the guidance a Certified Financial Planner (CFP) can offer. Expert support ensures your portfolio is regularly rebalanced and aligned with market changes, personal goals, and tax updates.

Regular Tracking: With a CFP’s help, your investments are reviewed frequently, making timely adjustments in case of underperformance. This hands-on approach is particularly helpful in achieving your long-term goals.

Tax Considerations: Regular funds through a CFP can help you optimize tax efficiency by offering proactive advice on capital gains, loss harvesting, and adjusting investments according to the new capital gains tax rules.

Importance of Actively Managed Funds

While index funds may seem attractive for their lower costs, actively managed funds bring added advantages, especially for long-term investors like you:

Potential for Higher Returns: Skilled fund managers actively seek growth opportunities that can outperform benchmarks over time. This could be a significant advantage given your long-term goals.

Flexibility in Market Movements: Active funds allow managers to make informed changes, adapting to market conditions and potentially protecting your investments during volatile phases.

Diverse Exposure: With active management, your funds are better diversified across sectors and stocks, reducing concentration risk and enhancing the potential for stable returns.

Investment Strategy Recommendations

Considering your goals and time horizon, here’s a comprehensive approach to optimize your portfolio:

Consolidate Fund Choices: Consider reducing similar funds within each category. This will provide clarity and focus, making it easier to track progress and reduce management complexity.

Review and Rebalance: Regularly review your portfolio performance, preferably with a CFP, to ensure each fund aligns with your risk tolerance and goals. Aim for annual rebalancing to stay on track.

Allocate Based on Goals: Assign specific funds for each goal. For example:

Child’s Education and Marriage: Given the moderate-to-high timeframe, allocate funds with a mix of stability (large-cap and flexi-cap funds) and growth (mid-cap).
Retirement: Invest in a diversified mix of flexi-cap and large-cap funds, along with a smaller allocation to mid-caps, as retirement is a long-term goal with a potentially higher investment horizon.
Avoid Overlapping: Limit overlap between funds by choosing those with unique holdings or management strategies. Too many funds can dilute returns, especially if they invest in similar stocks.

Tax Considerations

With recent changes in capital gains tax rules, be mindful of the following when planning exits or rebalancing:

Equity Mutual Funds: Long-term capital gains (LTCG) above Rs 1.25 lakh are now taxed at 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Debt Funds: LTCG and STCG for debt funds are taxed according to your income tax slab.

Tax Efficiency: To minimize tax outgo, hold investments for the long term and consult a CFP for tax-optimized rebalancing.

Investment Horizon: Sticking to your 15-year investment plan can help mitigate tax impacts and optimize returns.

Insurance Evaluation

If you hold any LIC, ULIP, or investment-linked insurance policies, review their performance and fees. These products often come with high costs, which can limit returns. Consider surrendering such policies if they don’t align with your goals and reinvest in well-performing mutual funds instead.

Finally

Your commitment to a 15-year SIP plan shows your dedication to securing your family’s future. A structured, diversified approach with periodic reviews can enhance your portfolio’s performance, aligning it with your goals of education, marriage, and retirement.

A Certified Financial Planner can be a valuable partner in this journey, providing expert advice to help you make the most of your investments and adjust them as needed.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |8319 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 05, 2025

Money
Dear Sir, I am aged 40 years a aggressive investor I have recent corpus of 13 lac in mutual fund and doing SIP of Rs30500 monthly in following funds . Nippon small cap - 9000 , Tata small cap - 7500 , Quant Small cap - 6000 , kotak small cap - 5000 and Pgmi Flexi cap -3000 and a vision for next 22 years with step up of 10 %. I also invest in PPF of 12500 monthly and In EPF with 25000 basic salary and i will also get Rs 50 lac from various LIC policy at the age of 60 . I want to know that is my approach is right and what would be the future corpus at the age of 62 years .
Ans: You are doing a disciplined and smart job with your investments. You have a long-term horizon, a strong SIP commitment, and a clear goal in mind. That’s a big step many don’t take seriously. Let me now evaluate your approach from all angles. This will be a 360-degree review of your investment plan and future readiness.

Let us go step-by-step to understand if your approach is right and what the future looks like.

Your Current Financial Setup

You are 40 years old now.

You have a mutual fund corpus of Rs 13 lakh.

You invest Rs 30,500 monthly through SIP.

You invest in four small cap funds and one flexi cap fund.

You step up your SIP by 10% annually.

You have a PPF investment of Rs 12,500 monthly.

You contribute to EPF. Your basic salary is Rs 25,000.

You will receive Rs 50 lakh from LIC policies at age 60.

Your investment horizon is 22 years from now.

This is a solid plan and shows discipline. Now, let us evaluate it carefully with insights and suggestions.

Assessment of Mutual Fund Investments

You are investing heavily in small cap mutual funds.

Four out of five funds are from the small cap category.

Small caps give high returns, but they also carry high risk.

Over 22 years, this risk may work in your favour.

But the ride will be bumpy. There will be sharp ups and downs.

At times, you may see short-term losses. That is normal.

However, putting over 85% of SIP in small caps may be risky.

You need better diversification for stability.

Adding large cap and mid cap funds may balance the risk.

Your Flexi cap fund does help a bit, but it is still not enough.

A blend of market caps will give smoother long-term growth.

It is better to slowly bring down small cap exposure to 50%.

Increase exposure to diversified and mid-cap funds gradually.

Don’t exit small cap funds suddenly. Take a phased approach.

This change will make your portfolio strong and well-balanced.

Step-Up SIP Strategy – Strong and Effective

Increasing SIP by 10% annually is a smart idea.

This fights inflation and grows your wealth faster.

It uses your rising income to build a big corpus.

Many investors ignore step-up. You are doing it correctly.

Keep increasing the SIP without fail every year.

Even a break in step-up can delay your target.

Review your SIPs yearly and adjust as income rises.

This strategy will help you reach your target corpus faster.

Investment in PPF – A Safe Long-Term Cushion

PPF offers guaranteed, tax-free interest.

You are investing Rs 12,500 monthly in PPF.

Over 22 years, this will become a strong safe corpus.

It adds stability to your overall financial plan.

PPF is good for retirement since it is risk-free.

Keep continuing till maturity. Do not withdraw early.

Interest rate may vary, but long-term returns are good.

You also get tax exemption under Section 80C.

This risk-free asset will protect you from equity market shocks.

EPF – A Reliable Retirement Contributor

Your EPF is linked to your Rs 25,000 basic salary.

The employer also contributes monthly.

Over 22 years, this will grow into a big amount.

EPF offers fixed, tax-free returns with no market risk.

It is an excellent tool for retirement planning.

Avoid premature withdrawals from EPF.

You can withdraw after retirement for use as income.

This will be a strong pillar of your retirement security.

LIC Maturity at Age 60 – A Special Boost

You will receive Rs 50 lakh from LIC policies at age 60.

This will come at a perfect time near retirement.

You must check if these are traditional or ULIP plans.

Traditional plans offer low returns, mostly below inflation.

ULIPs carry market risk and high charges.

If these are investment-cum-insurance plans, surrendering is wise.

You can reinvest that surrender amount in mutual funds.

Use proper asset allocation while reinvesting.

For insurance needs, use only term insurance.

Reinvesting in mutual funds can make this Rs 50 lakh grow further.

Future Corpus at Age 62 – What to Expect

With SIPs, EPF, PPF and LIC money, your total savings will be huge.

Your mutual fund corpus will grow rapidly with step-up.

Your PPF and EPF will grow safely, year after year.

LIC amount will give a big boost just before retirement.

With 10% SIP step-up, your corpus can cross Rs 9 to 10 crore.

Exact figure depends on market returns, SIP discipline, and inflation.

But you are definitely on the right path to reach financial freedom.

You are preparing for retirement very well.

This kind of planning gives peace of mind and confidence.

Things You Are Doing Right – A Quick Look

Strong SIP discipline and long-term vision.

Investing in equity for long-term wealth creation.

Following step-up SIP approach.

Investing in PPF and EPF for safe returns.

Keeping investment horizon of 22 years.

Maintaining separate LIC maturity plans.

You are showing smart behaviour as an aggressive investor.

Key Improvements You Should Consider

Reduce small cap exposure to 50% slowly.

Add more mid-cap and flexi cap funds.

Avoid overlapping funds from same category.

Review performance of all funds every 6 months.

Check expense ratios and consistency of returns.

Track goal progress once a year with clear targets.

Make sure your portfolio has good asset allocation.

Don’t hold funds only based on past returns.

Always go through a Certified Financial Planner for changes.

This will make your portfolio more stable and return-oriented.

Important Taxation Insight

Long-Term Capital Gains above Rs 1.25 lakh are taxed at 12.5%.

Short-Term Capital Gains are taxed at 20%.

Plan redemptions smartly to reduce tax.

Use staggered withdrawals near retirement.

Redeem equity funds over time, not all at once.

PPF and EPF are tax-free. LIC maturity is also tax-free.

But for mutual funds, plan redemptions with tax efficiency.

This will help you protect your wealth from tax erosion.

Important Notes on Fund Types and Investments

Do not use direct mutual funds if you are not an expert.

Direct funds need self-review and research, always.

There is no handholding or guidance with direct funds.

If you miss fund underperformance, losses may happen.

Regular funds through MFD with CFP advice are safer.

CFP will do goal review, fund analysis and rebalancing.

This adds value and protects your goals from derailment.

Always go through a trusted CFP for a 360-degree plan.

Your long-term wealth deserves the right expert attention.

Finally – Our Insights for You

You are on a great track with vision and discipline.

You are investing smartly across equity and debt.

With minor changes, your plan can become stronger.

Keep focus on diversification and risk management.

Review your goals and progress yearly with expert help.

Stick to your plan even during market falls.

Continue your SIP step-up and never skip contributions.

Use professional guidance to ensure smooth journey.

Your retirement will be financially independent and stress-free.

This approach will help you lead a proud, peaceful life post-60.

Stay committed and consistent. You are doing excellent already.

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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