My EPF hasn't accrued any interest since retirement and I don't have the withdrawal amount: What can I do?

Ans: Dear Lucky,
If there was a serious fight that led to this situation, wait for a few days and let her calm down. A little space can benefit both of you. I am sure things will be better soon.

Best Wishes.

Ans: Dear Anonymous,
If he is truly in a relationship and yet he flirts with you, I don't think he has strong moral values. But I must also point out that you do not have any verbal confirmation of his interest in you; while body language can indicate a lot, let's not take that as confirmation.

If you think admitting your feelings to him would give you closure, you can, but it comes with the risk of ruining his relationship. But it would not be your fault; it would be his. If your feelings ruin his relationship, then it wasn't strong to begin with. I can't tell you to go ahead and confess or not do it at all, but I will recommend you not pursue a relationship with him in case he suggests anything on that line. You deserve better.

Best Wishes.

Ans: Dear Anonymous,
I understand that it is difficult to stay in an unhappy marriage. It also seems to me that you already know that you have to legally separate from your wife before you move on to another relationship. I would suggest consulting a divorce lawyer to get a better idea of the whole process. You should also have an open discussion with the woman you are in love with about your financial condition. She should have a clear picture of whom she's marrying. Let me also remind you to be very careful about your dealings and not rush into anything because both of you have young and impressionable kids. They should not have to suffer.
I hope everything works out well for you.

Best Wishes.

Ans: What is your age? Do you have any co-morbidity? Is your weight in normal range?
These are questions I need to have answers.
In absence of any major health issue, these are still acceptable parameters. But should be considered in context of clinical status and patient complaints.

Dr Chandrakant Lahariya

Ans: It is one of the medicines- sulfonyleurea- which after some time has reduced effect. These medicine results in increased secretion of insulin from pancreas.
Ye uss category ki medicine hai jo kuch samay baad asar kam kar deti hai. Isko doosri medicine se badlna hota hai.
apne doctor se consult kijiye aur wo personalised approach se guide kar sakte hai.

Dr Chandrakant Lahariya
Centre for Health: The Specialty Practice
New Delhi

Ans: Hello;

I would like to know SIP amount, financial goal and the time horizon for your goal achievement so as to be able to guide you better.

Thanks;

Ans: Hello Soumitra,

First and foremost, thank you for getting in touch with us. I am happy to know that your son is interested in pursuing an internship program in Germany or France. However, I would like to tell you that studying overseas frequently offers easier visa options, such as student visas, which can result in post-study employment opportunities. Therefore, instead of directly going for an internship program, he can consider pursuing higher studies first. Both Germany and France are renowned for their top-notch education and research centres, and thus, pursuing a Master's degree in Mechanical Engineering or an associated field in any of these countries is an ideal choice. RWTH Aachen, TU Munich, and École Polytechnique are renowned universities that provide specialized courses. Your son should also think about contacting academics in his area of interest and participating in academic conferences or workshops, which can assist in establishing connections and result in possible internship or research possibilities. In Germany, he can locate internships and research possibilities via platforms such as DAAD (German Academic Exchange Service), which frequently entail financing options. Likewise, in France, your son can explore the CAMPUS France website, which offers information on internships and study programs that are open to overseas students. I wish him the very best for all his future endeavors.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

Ans: Hello
Yes! BOSEE (Board of Open Schooling and Skill Education) is recognized by NIOS (National Institute of Open Schooling) by Govt of India as an open schooling board.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

Ans: At 23, you're taking a positive step towards wealth creation with your SIPs. Long-term investing in mutual funds can provide you with compounding benefits and generate substantial returns over time. Let's evaluate how your current SIPs and future increases could shape your financial journey over the next 15 years.

Expected Corpus with Current Investment
Right now, you're investing Rs 6,000 per month across three funds. Over 15 years, this consistent approach can generate a substantial corpus, but it's important to manage expectations. Mutual funds, especially in equity, can be volatile, but historically they have offered returns ranging from 10% to 12% over the long term. Here’s what you can expect:

Assuming an annual return of around 10%, your investment of Rs 6,000 per month could grow significantly. While it's hard to predict exact numbers due to market fluctuations, you may end up with an impressive corpus after 15 years.

Your current SIP could help you reach anywhere between Rs 22-24 lakhs, depending on market conditions. This growth is mainly due to compounding and consistent investments. But do remember, this is an estimate, and actual results can vary.

Corpus with Increased Investment
If you increase your SIP to Rs 15,000 per month (Rs 5,000 in each fund), your potential corpus will rise significantly. Assuming the same annual return of around 10%, this approach would result in much higher wealth creation:

Your new SIP of Rs 15,000 per month could help you accumulate a corpus of approximately Rs 55-60 lakhs after 15 years, depending on the market. The increased investment will take advantage of compounding to a greater extent, amplifying your returns.

Analytical Insight on Different Funds
Actively Managed Flexi-cap Fund
A flexi-cap fund gives you the flexibility to invest across large, mid, and small-cap companies. Since these funds are actively managed, the fund manager can adjust the portfolio as market conditions change. This flexibility could help in generating higher returns over the long term compared to index funds, which are passive.

Actively managed funds provide room for better returns due to expert fund management. The fund manager's discretion allows for navigating volatile markets and taking advantage of emerging opportunities, which can potentially outperform index funds.

Flexi-cap funds, being diversified across market caps, reduce the risk of over-exposure to any one sector. This balanced approach can help you achieve consistent growth in the long term.

Small-cap Funds
Small-cap funds focus on smaller companies with high growth potential. These companies may be volatile in the short term, but they can offer substantial returns over the long term. Your choice to invest in small-cap funds reflects a more aggressive risk-taking approach, which can work in your favor given your young age.

While small-cap funds can deliver higher returns, they are also more prone to volatility. Therefore, it’s important to have a long-term horizon, as you do. Over 15 years, this investment may reward you with considerable gains, especially if the small-cap companies grow rapidly.

Index Funds: Some Drawbacks
Index funds, while offering diversification, have certain limitations. Since these funds are passively managed, they cannot beat the market but simply follow it. They may provide decent returns, but they often miss out on opportunities to outperform, especially during volatile market conditions.

Lack of Flexibility: Index funds strictly follow the market index. Even during a downturn, they continue holding the same stocks, which may not be ideal for an investor looking for growth in a changing market.

Missed Opportunities: Active funds, on the other hand, can adjust their portfolio to benefit from undervalued stocks, thus offering higher returns compared to index funds.

Lower Performance Potential: Index funds have a cap on potential returns, as they are not actively seeking out high-growth opportunities. While they are low-cost, this passive approach might not suit investors seeking substantial growth.

In contrast, regular funds through a certified financial planner can offer personalized advice and flexibility in selecting better opportunities. The expertise of a professional can result in better portfolio management and timely adjustments based on market dynamics.

Benefits of Regular Funds with Certified Financial Planner
While direct funds might seem cost-efficient, investing through regular funds and leveraging the expertise of a certified financial planner offers several advantages:

Professional Management: Certified financial planners provide a structured approach to investments. Their advice can help balance risk and ensure the selection of suitable funds for your financial goals.

Customized Financial Planning: Instead of following a one-size-fits-all approach, a financial planner tailors investment strategies to your personal goals, risk appetite, and time horizon. This ensures better-aligned returns with your life goals.

Active Monitoring: Regular funds through a certified financial planner offer better portfolio management. They consistently monitor your investments and rebalance your portfolio when necessary, optimizing your returns.

Long-term Strategy: Certified financial planners create a roadmap for your financial goals, ensuring you're on track to reach your desired corpus. They can adjust the strategy based on changes in your life or market conditions.

Tax Implications
It's important to keep in mind the tax implications on your investments:

Equity Mutual Funds: For long-term capital gains (LTCG) over Rs 1.25 lakh, the tax rate is 12.5%. Short-term capital gains (STCG) are taxed at 20%.

Rebalancing and Taxes: When you work with a certified financial planner, they can ensure that any rebalancing is done in a tax-efficient manner, reducing your overall tax liability.

SIP as a Wealth-building Tool
SIPs are a powerful tool for wealth building because they instill financial discipline and take advantage of rupee cost averaging. Here’s why your SIP strategy works well:

Consistent Investments: Regular contributions to SIPs help you stay invested through market ups and downs, reducing the impact of market volatility.

Rupee Cost Averaging: This strategy lowers the average cost of your investments over time, which is particularly useful in volatile markets. You buy more units when the market is low and fewer when it's high, leading to better long-term returns.

Compounding Growth: The power of compounding ensures that even small amounts invested consistently can grow significantly over time. As your SIP grows, so does your investment, thanks to the reinvestment of returns.

Increase Your Contributions
You’re already on the right path, but increasing your SIP amounts will amplify your wealth creation potential. As your income grows, make it a point to increase your SIP contributions proportionally. This will help you reach your financial goals faster.

By consistently increasing your SIPs as your financial situation improves, you’ll be able to achieve greater compounding benefits, ensuring a stronger financial future.

Diversification Across Fund Types
Your portfolio has a healthy mix of fund types, which helps manage risk while taking advantage of growth opportunities. But remember:

Balanced Approach: While small-cap funds offer high growth potential, they can be risky. Balancing them with more stable, large-cap or flexi-cap funds helps ensure steady growth with a cushion during market downturns.

Risk Management: Diversifying your SIPs across different types of funds ensures you aren't overexposed to a particular sector or market cap. This can protect your investments from excessive volatility.

Monitoring and Adjusting Your Portfolio
Your SIP investments should not be a “set it and forget it” approach. It’s important to review your portfolio regularly, at least once a year. Markets change, your financial situation might change, and it’s crucial that your portfolio evolves to keep pace with these changes.

Annual Review: With the help of a certified financial planner, you can assess your portfolio’s performance annually. This ensures that your investments are aligned with your financial goals and market conditions.

Rebalancing: As market conditions shift, it may be necessary to rebalance your portfolio. A certified financial planner can help you make these adjustments to optimize returns without incurring unnecessary tax liabilities.

Final Insights
Your commitment to SIPs at such a young age is commendable. This disciplined approach will help you build a strong financial future. Increasing your contributions will amplify your wealth creation and ensure that you achieve your financial goals sooner.

Remember, while mutual funds can offer substantial returns, it’s important to stay invested for the long term and not be swayed by short-term market volatility. Work with a certified financial planner to make the most of your investments and stay on track toward your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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