Hi Anu, I have been going through your column on rediff for some time and I feel you will be able to help me out.
I want your advice on my relationship with my girlfriend.
We have been in the relationship for 3 years now. I love her a lot and see a future with her. But there are some issues.
I think she has some mental health issues. I could never judge in what mood she is in.
I look forward everyday to the time we talk or spend together but most often after the meet/ talk I feel low.
She almost never misses to find mistakes in everything I do and she blames it on my immaturity since she is 3.5 years elder to me (I am 29).
Very rarely I do find out eventually that her judgment was right but most often I feel in all sense she is irrational and I think I am correct.
This has taken an emotional toll on me. Now I do not feel like sharing thoughts and things with her because of the fights and emotional toll that I would have to face. I love her a lot and it seems like she too does but might be, I am wrong.
I tried breaking up with her thrice. But every time because of some or other urgency or work-related stuff when we reconnect we fall back deeply in love.
We are in same field but different organization.
I was earlier in the same organisation but she left as she got a better offer.
It makes sense to me but sometimes I do feel she could have stayed in same organization).
She has been asking me to marry her, but all these things stated above makes me nervous what might be in future if I do marry her.
As I take time to think it out she puts it as if I never wanted to marry her. I seek your advice.

Ans: Hello Kalpana
It is a good option, but not number one. Generally, NIT Trichy is more popular for chemical engineering. Yet, you can go with it without any consideration. Work hard to excel.

Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Hello dear.
Chances are slim. Explore other options.

Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Hello dear.
Yes. Your son has bright chances of getting CSE @ tier 1 colleges. Currently, I am unable to provide the list of colleges to you. Sorry.


Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Hello dear.
You have a chance to get a seat in a good college. You might have to compromise on tech branches. Currently, I am unable to provide the list of colleges to you. Sorry.

Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Hello dear. I am unable to predict the rank, admission, and counseling process of private universities. Sorry.

Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Hello dear.
Prefer 2+2 program if possible. The final decision will be yours.

Good luck.
Follow me if you get this reply.
Radheshyam

Ans: Starting SIPs without guidance is still a brave step. You chose to act. That’s valuable.

You’ve already invested Rs.6.84 lakhs. You have Rs.2 lakhs gain. That’s positive. But your fund choices and strategy now need refining. We’ll assess everything carefully and improve your plan.

This answer will cover your entire portfolio. You will get a full 360-degree solution.

A Quick Look at Your Current Fund Selection

You’re investing in:

An infrastructure-focused fund.

A digital technology-focused fund.

These two funds are sector funds. Sector funds are concentrated. That means:

They focus only on one part of the economy.

They don’t diversify across sectors.

They may perform very well in short bursts.

But they also fall hard during sector downturns.

You are exposed to only two specific sectors. This brings high risk. Also, both are direct plans. Let’s discuss why that matters.

Why Direct Plans May Not Be Ideal

Direct funds look cheaper. But they miss professional support. Here are key issues:

No help in selecting best-fit funds for your goals.

No guidance during market ups and downs.

No periodic review or correction in portfolio.

No help with taxation or rebalancing.

No behavioural support during fear or greed phases.

You are left alone. That can lead to wrong decisions.

Switch to regular plans through a Certified Financial Planner. Benefits include:

Proper risk profiling.

Personalised fund choices.

Ongoing monitoring.

Emotion management in volatile times.

Long-term peace of mind.

The extra cost pays for strong support. And it often leads to better returns.

What’s Missing in Your Portfolio Today

Let’s now assess what is missing:

No large cap or flexicap exposure.

No actively managed diversified equity fund.

No debt exposure for stability.

No hybrid or multi-asset mix.

No proper asset allocation.

Entire investment depends on two sectors.

No financial goal planning.

This is risky for any investor. Even with good returns now, this may not last.

Why Sector Funds Must Be Handled With Caution

Sector funds can deliver in specific market cycles. But they are not meant for core portfolio. They are for advanced investors only.

Issues with sector funds:

Limited to one sector’s growth.

Risky if that sector underperforms.

Very volatile and cyclical in nature.

Need close monitoring and timely exit.

Requires strong knowledge of that sector.

Currently, your SIP in tech and infra sectors is too high. This is not safe for steady wealth building.

The Safer and Better Alternative – Diversified Equity Funds

Instead of sector funds, you need active diversified funds. These offer:

Broad exposure across sectors.

Lower volatility compared to sector funds.

Regular adjustment by fund managers.

Professional stock selection.

Focus on long-term business quality.

You need to build your portfolio on this solid foundation. These funds are ideal for core portfolio.

How to Rebuild Your Portfolio

Now let’s rebuild your investments for strong and safe growth:

Stop fresh SIPs in sector funds gradually.

Redeem old sector fund investments step by step.

Start SIPs in diversified active equity funds.

Choose regular plans through a Certified Financial Planner.

Mix large cap, flexicap, and multicap categories.

Add debt or hybrid funds for balance.

This way, you reduce risk and improve consistency.

Add Debt Funds for Stability

Right now, your portfolio is fully in equity. This brings high short-term risk. You need some debt allocation.

Debt funds offer:

Protection during equity market fall.

Liquidity for emergency or short-term needs.

Lower return, but also lower stress.

Predictable performance.

You can start with low-risk short-term debt funds. You may also add hybrid or dynamic funds for smoother ride.

Multi-Asset Funds Can Be Helpful

Multi asset or dynamic allocation funds invest across:

Equity

Debt

Gold

They shift between these based on market conditions. This reduces ups and downs. It suits investors with moderate risk appetite.

Such funds simplify portfolio management. You don’t have to worry about timing market moves.

Set Clear Goals for Your Money

Right now, there’s no defined goal. That’s okay. But planning will improve direction.

You may think about:

Retirement in future.

Buying a house.

Family’s future security.

Travel or business plans.

Children’s education or marriage.

With clear goals, you can:

Allocate money better.

Choose suitable funds.

Track progress more meaningfully.

Without goals, your efforts may feel directionless.

Why Asset Allocation Is Your Real Friend

Returns don’t depend only on fund choice. They depend more on asset mix.

An ideal mix helps you:

Manage market swings.

Sleep better during downturns.

Stay invested longer.

Reach goals peacefully.

Without asset allocation, returns become uneven. Risk becomes harder to manage.

Avoid These Common Mistakes

Many new investors do the following:

Pick top-performing fund randomly.

Keep investing in same fund forever.

Don’t track fund performance.

Don’t check if fund matches their risk.

Keep investing without a plan.

Use direct plans without any review.

Avoid these errors. They cost more than they appear.

How Much Should You Allocate to Equity and Debt?

You may consider this broad allocation based on moderate risk:

Equity: 60%

Debt: 30%

Gold or others: 10%

This keeps the portfolio healthy. You reduce pain in volatile times.

As your goal becomes closer, shift more towards debt. This protects gains.

Review Portfolio Every Year

Markets keep changing. So should your portfolio.

Every year:

Review your fund performance.

Check if funds are beating benchmarks.

Exit consistent underperformers.

Rebalance asset allocation.

A Certified Financial Planner will help in this. You don’t need to do it alone.

What About Tax on Your Investments?

New tax rules on mutual funds apply now.

For equity mutual funds:

LTCG above Rs.1.25 lakh is taxed at 12.5%.

STCG is taxed at 20%.

For debt mutual funds:

Both LTCG and STCG are taxed as per your slab.

So plan redemption carefully. Keep tax efficiency in mind.

Emergency Fund is Non-Negotiable

Keep some money aside in a liquid fund. Use it only in emergency.

This way:

You don’t touch your long-term funds.

You get peace of mind in tough times.

Build at least 3 to 6 months of expenses here.

Protect Yourself with Right Insurance

Don’t mix investment with insurance.

If you have ULIP or LIC policies with poor returns:

Evaluate their performance.

Consider surrendering if returns are low.

Reinvest that in mutual funds.

Use pure term plan for life insurance. It gives better protection.

Emotional Discipline Is the Real Key

Even the best portfolio fails if you panic. Or if you become greedy.

Follow these rules:

Stay invested long term.

Don’t react to short-term news.

Review once a year only.

Trust your plan, not market rumours.

If you stay disciplined, wealth will grow.

Finally

You have already started your SIPs. That’s the hardest part. Appreciate that.

But sector fund-only strategy is risky. It needs change.

Avoid direct plans. Choose regular funds with Certified Financial Planner.

Add diversified actively managed equity funds.

Build proper asset allocation between equity and debt.

Use dynamic or multi asset funds for smooth growth.

Set long-term goals gradually.

Keep some money in liquid fund for emergencies.

Get term insurance separately.

Avoid mixing insurance and investments.

Stay invested with patience and review annually.

A well-guided portfolio gives both growth and peace. And you are just one step away from that.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You have Rs. 2 lakhs to invest and want regular monthly income. You also want to understand ETFs and Bonds. Let’s create a complete 360-degree investment answer.

Every sentence is short and simple. This response is structured for Indian context.

Know Your Goal First
You want income from Rs. 2 lakhs investment.

This means your goal is income generation.

This is different from wealth creation.

When we invest for income, capital appreciation is secondary.

You must also keep your money safe.

And make sure money is available monthly.

Don’t invest everything in risky instruments.

Protecting money is more important in this case.

First step is capital protection.

Second is monthly income.

Where Can You Get Monthly Income
You have multiple options for this goal:

1. Monthly Income Scheme from Post Office
This is one of the safest options.

You can invest in joint or single mode.

Interest is fixed and paid monthly.

Capital is returned at the end of term.

No TDS is deducted.

But interest is taxable as per your slab.

Good for senior citizens and low-risk investors.

But returns may not beat inflation.

Ideal only for short-term income needs.

You can invest Rs. 2 lakhs here.

Get fixed amount monthly with peace of mind.

2. Senior Citizen Saving Scheme (if eligible)
Only for people above 60 years.

Pays high fixed return every quarter.

Has a five-year lock-in period.

Interest is taxable.

Safe and government backed.

Not for you if under 60 years.

But your parents can use this option.

Ideal to secure their post-retirement income.

3. Debt Mutual Funds with SWP
Debt funds invest in government and corporate bonds.

Safer than equity but not risk-free.

You can start SWP (Systematic Withdrawal Plan).

SWP gives fixed amount monthly from your investment.

Capital stays invested and continues to earn.

Better post-tax return than FD in long term.

Short Term Capital Gain taxed at 20%.

Long Term Gain taxed as per slab.

Use only high-quality debt funds through a CFP.

Don’t go for direct debt funds.

They don’t provide handholding and advice.

Regular plan through certified planner gives support.

CFP monitors interest rate changes and portfolio health.

Avoid putting all Rs. 2 lakhs in debt fund.

Keep part in liquid fund as emergency backup.

4. Hybrid Mutual Funds with SWP
Mix of debt and equity.

Safer than pure equity, better than pure debt.

Monthly SWP can give income and growth.

Ideal if you want 5-7% annual income.

But fund selection is key.

Choose only regular plan through CFP.

Don’t use index or direct mutual funds.

Index funds just copy market blindly.

They don’t offer protection in market fall.

Active hybrid funds have risk control.

CFP reviews it yearly and rebalances.

This ensures stable income and capital protection.

What Are Bonds?
Bonds are like loans you give to companies or government.

They promise to pay fixed interest.

After fixed time, they return the principal.

Government bonds are safest.

Corporate bonds carry higher risk.

You can buy bonds through mutual funds.

Direct bond investment needs large capital and timing.

Better to invest through debt mutual fund.

It gives diversification and expert management.

You don’t need to track bond market yourself.

Debt fund handles risk and duration.

You also get liquidity in emergency.

What Are ETFs?
ETFs are Exchange Traded Funds.

They copy a stock market index like Nifty or Sensex.

They are like mutual funds, but traded like shares.

Most ETFs are passive in nature.

They don’t try to beat the market.

They just copy the market performance.

When the market goes up, ETF goes up.

When market falls, ETF falls equally.

No risk management by fund manager.

ETF can underperform in sideways or down markets.

No help or review comes with ETF.

You must handle rebalancing on your own.

Many investors buy high and sell low.

So, ETFs don’t suit most Indian investors.

Avoid ETF if you want peace of mind.

Don’t use ETF for income purpose.

They are for growth, not monthly income.

Also, there is no fixed monthly payout from ETF.

Mistakes to Avoid
Don’t invest all Rs. 2 lakhs in one place.

Don’t fall for high return schemes.

Don’t trust unsolicited online advisors.

Avoid peer-to-peer lending or private chit funds.

Don’t put money in index or direct mutual funds.

Don’t chase trends like crypto or F&O.

Don’t mix insurance and investment.

Don’t buy ULIPs or endowment for monthly income.

They lock money and give poor return.

Avoid buying stock or bonds directly without help.

Don’t use direct plan of mutual funds.

They give zero guidance and no review.

Regular plan via CFP is far better.

It gives professional support and protection.

Your goal is income, not thrill.

Stick with low-risk, reviewed options.

Ideal Action Plan with Rs. 2 Lakhs
Put Rs. 1 lakh in Monthly Income Scheme.

It will give fixed amount monthly.

Very low risk and safe.

Put Rs. 50,000 in Liquid or Ultra Short Debt Fund.

Use SWP for monthly withdrawal of Rs. 400 to Rs. 500.

Keep Rs. 50,000 in hybrid mutual fund.

Start SWP after 1 year holding.

This gives equity growth and regular income.

Use regular plan only with CFP supervision.

Don’t try to manage it yourself.

Plan will give stable monthly income with growth.

Rebalance every 12 months with CFP help.

Important Reminders for Monthly Income
Don’t aim for very high monthly income.

Higher income need means higher risk.

Keep realistic expectations, around 6-8% yearly.

Withdraw only interest, not capital.

Emergency fund must be kept separately.

Your principal must stay untouched for 3+ years.

Reinvest yearly bonus or extra income.

Grow your capital slowly to Rs. 5 lakhs.

Then your monthly income also increases.

Keep expenses low and track savings.

Small consistent steps bring big change.

Finally
You want to earn monthly income from Rs. 2 lakhs.

Avoid ETF and direct investments.

Don’t go for index funds or direct mutual funds.

Regular mutual funds via CFP are better.

Use a mix of MIS, SWP and debt fund.

Review portfolio every 12 months.

Don’t withdraw full amount early.

Keep your investment safe, simple, and secure.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Time Horizon Left Before Her Higher Studies
Your daughter is 10 years old now.

You have around 7 to 8 years left.

After that, expenses will shoot up fast.

Engineering, Medical, or Abroad – all need large funds.

So you have limited time to grow money.

Delaying planning further can harm your goal.

Start structured investments from this month itself.

Why Fixed Plans Will Not Work Alone
Many parents invest in only fixed plans.

These include Sukanya, PPF, RD, and LIC.

These are very safe but give low growth.

Returns are often below education inflation.

Education cost doubles every 7 to 8 years.

A fixed deposit gives 6-7% returns.

College fees are rising by 10-12% yearly.

So mismatch will happen if only fixed returns.

Use fixed products for stability, not for growth.

A Good Plan Must Have Three Investment Buckets
Let’s divide your plan into 3 parts:

1. Safety Bucket (Stability and Discipline)
Use government schemes for basic security.

PPF is a good long-term fixed interest option.

Start yearly contributions till she turns 21.

Avoid direct FD as it has lower post-tax returns.

Use recurring deposit only for short term goals.

These give discipline but won’t grow wealth much.

This bucket is for emergencies or short-term goals.

2. Growth Bucket (Actual Wealth Creation)
This is the most important investment area.

Use mutual funds with SIP to build large corpus.

Choose active funds only, not index funds.

Index funds blindly copy market and carry risk.

They don’t protect downside during bad years.

Active funds managed by experts offer better safety.

Regular plan via MFD and CFP gives advisory support.

Don’t invest in direct plans without expert guidance.

Direct plans seem cheap but lack review support.

Many investors lose track without MFD follow-up.

Through regular plan, CFP reviews fund performance yearly.

So you keep on right track without risk.

Do monthly SIP in diversified equity funds.

Increase SIP amount every year with salary hike.

Also invest lump sum in balanced or multi-cap funds.

This will reduce market timing risk.

Keep gold fund allocation low, not more than 5%.

3. Insurance Bucket (Protection of Goal)
Take pure term insurance immediately if not done.

Amount should be minimum 15-20 times your income.

Never mix investment with insurance.

Avoid child ULIP or endowment plans.

They give poor returns and high charges.

They lock money but give low growth.

Cancel them if already taken and shift to mutual funds.

Always keep family secure in your absence.

Buy critical illness and accident rider separately.

Also take health insurance for entire family.

Don’t depend only on employer coverage.

Education goal must survive even if income stops.

Suggested Action Plan from This Month
Start SIP in actively managed diversified equity fund.

Begin with Rs. 5000 per month minimum.

Increase every year with salary increment.

Avoid index funds and ETFs completely.

They underperform in volatile or sideways markets.

Also avoid direct mutual fund plans.

Use regular plans via CFP and MFD.

They give proper rebalancing and goal tracking.

Add Rs. 1.5 lakh every year in PPF.

Maintain this till daughter turns 21 years.

Review PPF maturity matching her marriage or postgrad need.

Keep at least Rs. 2 lakhs in emergency fund.

Keep this in liquid or overnight fund.

Top up term cover every 5 years.

Don’t depend on gold ETF or e-gold too much.

These don’t beat inflation regularly.

Use them as minor hedge, max 5%.

If You Already Have Sukanya Samriddhi Account
Continue Sukanya Samriddhi till maturity.

It gives fixed return with EEE benefit.

But remember, withdrawal is allowed only for education.

You can’t use it flexibly like mutual funds.

So don’t depend fully on Sukanya Samriddhi.

Use mutual fund SIP as primary wealth engine.

Sukanya is only a secondary support plan.

Tax Efficiency and Liquidity Are Key
All your plans must offer tax benefits.

PPF, NPS, ELSS give tax benefits under Section 80C.

Use debt funds for short term goals with tax planning.

Don’t keep more than 1 year’s fee in FD.

Equity SIP held for long-term is tax efficient.

Only profits above Rs. 1.25 lakh are taxed.

LTCG tax on equity is only 12.5% now.

Debt mutual funds taxed as per income slab.

Plan mix accordingly for better post-tax returns.

Avoid These Common Mistakes
Don’t buy child ULIP from insurance company.

These eat up charges and give poor returns.

Don’t mix emotions with investment plans.

Don’t invest in direct equity stocks yourself.

It needs expertise and continuous monitoring.

Don’t rely only on PPF or Sukanya for goal.

Don’t chase returns, focus on consistent planning.

Don’t delay SIP waiting for better market level.

Don’t stop SIP during market correction.

That’s when wealth is actually created.

Monitor and Review Every 12 Months
Once your plan is running, don’t ignore it.

Review SIP performance and goals once every year.

Shift from equity to hybrid when goal is 2-3 years away.

This will protect from last-minute market fall.

Rebalance fund allocation with help of CFP.

Also review term cover and medical cover yearly.

Make sure nominee details are updated.

Keep spouse informed about all investments.

Maintain written record of plan in one file.

Don’t rely only on memory or emails.

What Happens If You Start Late?
If you delay, you need to invest double.

You’ll lose power of compounding.

A Rs. 5000 SIP started now grows large.

Same SIP started 3 years later grows small.

The longer you wait, the harder it gets.

Starting early reduces burden on your salary.

You need to save less if you start early.

But you’ll need to save more if late.

So time is more important than money.

Start with small, but stay consistent for years.

Final Insights
You have 8-10 years left for daughter’s education.

Use active equity funds for real growth.

Don’t depend only on PPF or Sukanya.

Avoid ULIPs and direct plans without support.

Build protection with term and health cover.

Make a proper goal-based investment strategy.

Keep your investments flexible and tax-efficient.

Track yearly and correct as per situation.

With right actions, you will reach your goal confidently.

Don’t postpone action. Start building her future today.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment