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Ramalingam

Ramalingam Kalirajan  |7411 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 04, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
K Question by K on Feb 03, 2024Hindi
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I have sold aproperty in December 2023 for 44.5lacs which was originally purchased for 2.7lacs in 1999. Now 1) An amount of Rs 40000 was incurred towards brokerage charges. Can I avail this as deduction from the total in tax calculation? 2) How to calculate the capital Gain Index for this amount? and 3) Can I add expenditure spent towards maintenance, additions made etc over theses years (for which no proof I can show) to get any tax deduction?

Ans: Brokerage Charges: Yes, you can deduct the brokerage charges of Rs 40,000 from the total sale proceeds before calculating the capital gains tax. The brokerage charges incurred in selling the property are considered as a legitimate expense and can be deducted from the sale proceeds.

Capital Gain Index: To calculate the indexed cost of acquisition for long-term capital gains tax, you need to use the Cost Inflation Index (CII) issued by the Income Tax Department. The formula to calculate indexed cost of acquisition is: Indexed Cost of Acquisition = Cost of Acquisition x (CII of the year of sale / CII of the year of acquisition). You can find the CII values for different financial years on the Income Tax Department's website.

Expenditure on Maintenance and Additions: Unfortunately, you cannot add expenditure spent towards maintenance, additions, etc., over the years without proper proof for tax deduction purposes. The Income Tax Department requires proper documentation and proof of expenses to claim deductions. Without proper documentation, these expenses cannot be considered for tax deduction.

It's always advisable to consult with a tax advisor or chartered accountant for accurate guidance tailored to your specific situation, as tax laws and regulations may vary. They can provide personalized advice and help you maximize tax benefits while ensuring compliance with tax laws.
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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Mutual Funds, Financial Planning Expert - Answered on Jan 03, 2025

Asked by Anonymous - Jan 03, 2025Hindi
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I have invested in ICICI Prudential Nifty 50 index SIP. I have noticed that from past 6 months the fund is not performing. Should I keep this fund or liquidate and invest in in multi asset fund?
Ans: The ICICI Prudential Nifty 50 Index Fund replicates the Nifty 50 index. It is a passive fund that mirrors the index performance. The last six months have been volatile for the stock market, which has affected index funds. This is expected in short-term market conditions and does not reflect the long-term potential of index-based funds.

However, relying on index funds for wealth creation in volatile markets may not always be optimal. Active funds offer the flexibility of stock selection, better risk management, and potential for higher returns.

Why Active Funds May Be a Better Choice
Volatility Management: Active fund managers adjust the portfolio based on market trends. This flexibility helps during volatile times.

Higher Growth Potential: Actively managed funds can outperform index funds by investing in sectors and stocks with higher potential.

Diversification: Multi-asset funds allocate across equity, debt, and other asset classes. This reduces risk and provides stability.

Assessing Your Current Investment
Index Fund Performance: While the last six months may seem disappointing, index funds are designed for long-term investors.

Cost Factor: Index funds have lower expense ratios but lack active management during market fluctuations.

Active vs Passive: Actively managed funds are better during periods of market instability. They offer professional stock selection and sector rotation.

Benefits of Multi-Asset Funds
Balanced Portfolio: Multi-asset funds invest in equities, bonds, and gold, diversifying your investment.

Risk Mitigation: Allocation to multiple asset classes reduces portfolio volatility.

Stable Returns: These funds aim to provide consistent returns, even during volatile markets.

Suggested Action Plan
Reevaluate Goals: Align your investment decisions with your financial goals and risk tolerance.

Shift to Active Funds: Consider shifting from the Nifty 50 index fund to an actively managed multi-cap or multi-asset fund.

Monitor Performance: Choose funds with a strong track record and consistent performance across market cycles.

Consult a Certified Financial Planner: A planner can help you select the right actively managed funds and align your investments with your financial plan.

Final Insights
While index funds like ICICI Prudential Nifty 50 are suitable for passive investors, active funds offer an edge in volatile markets. Shifting to a multi-asset or actively managed fund may help you achieve better returns and stability.

Invest wisely, monitor regularly, and stay disciplined to maximise your wealth creation journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Anu

Anu Krishna  |1424 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 03, 2025

Asked by Anonymous - Jan 02, 2025Hindi
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Hi Sir/Ma'am, I am here to know if there is a problem with my mind or body as I am having a strong sense of demotivation to work towards the upcoming exams. I had taken a 3 months study leave from my work for the upcoming exams to be held in January . The first month was excellent but the next was not good and last month was pathetic. For the past 2 months I have been trying to work hard sincerely but failed. I sat at the study table, but could not achieve my targets. I wrote the targets , but still failed to complete them. I tried watching self help videos and read self help books but nothing is helping me. Today, it is like my brain signals not to work towards any of my targets. I am a CA aspirant and I tried all these ways but nothing worked for me. My exams are in 9 days and my family is not ready to give me any more chances because this is my 7th attempt. Even if I talk about this problem with my family, they become extremely negative and say harsh words about my future. Since I do not have family or friends to talk about it , could you please provide me sincere help in this ?
Ans: Dear Anonymous,
Kindly work with someone who can get you out of this mindset and into a mindset that is not motivating but also inspiring. Right now what you face is lack of inspiration which is understandable given the many attempts. But you are aware that some professional exams are like this; so persevere...
If it makes sense, take a break from it all...Breaks can refresh the mind and also help you realign yourself back to your goal. But make sure it's a short break and not something that will get you to a place of procrastinating. The break is to help you slow down the mind so that you can bring yourself back to your goal and take necessary steps to achieve it.

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

...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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