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Single Dad Struggles to Build Bond with Son: Seeking Advice

Anu

Anu Krishna  |1203 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 11, 2024

Anu Krishna is a mind coach and relationship expert.
The co-founder of Unfear Changemakers LLP, she has received her neuro linguistic programming training from National Federation of NeuroLinguistic Programming, USA, and her energy work specialisation from the Institute for Inner Studies, Manila.
She is an executive member of the Indian Association of Adolescent Health.... more
Asked by Anonymous - Sep 10, 2024Hindi
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Relationship

Hi Anu ji, I am 42 yr old single parent. I have a 10 yr old son living with me. My wife and I were separated when our son was 3 yr old and we recently settled our divorce. Immediately after our divorce, my ex-wife got re-married. Her husband isn’t willing to take my son in and hence she handed over his legal custody to me. She has moved on with her life and my son doesn’t feature in her list of priorities. I am more than happy to have him. During the last 7 years of separation, she did not allow me or my parents to meet my son, so we could not build a strong bond together. Now, it has been 6 months since my son has moved in with me. Its only me and him living together ATM. My parents stay in our ancestral village and are unable to stay with me. Though its challenging for both of us to discover and understand each other, it must be tougher for my son. He understands the fact that his parents aren’t together and hence he has to stay with either of us at a time. Sometimes, he does get emotional about this situation not being normal compared to his friends / cartoons / movies etc. He also misses his mother and often keeps quoting that “My mother does it this way...”, “Me and my mum used to do this / that” etc etc and I appreciate that. I am fine with him talking to his mother through WhatsApp and meeting her whenever they wish to. He is also close to his other maternal family members, and I do not have any issues with him maintaining that bond. Now the challenge is, my ex-wife and her family abuses and shoos me away every time I try to ask them about my son such as his eating habits, likes, dislikes, vacation plans etc etc. They also bad mouth me whenever they speak to my son. That poor little soul gets influenced and feels that its punishment for him to live with me. And I feel betrayed as I too have made sacrifices / adjustments in my career, relationships etc to be able to take care of my son. I feel like stopping his communication with his mum and maternal family, but worried if that would adversely affect him. Now I have also started to get angry whenever he speaks to his mum or maternal family and try not to vent out at him, but I sometimes I do. Please guide me to navigate this delicate situation and what should I look forward to in my life.

Ans: Dear Anonymous,
Firstly, stop going back to your ex-wife for things that concern your son.
You have taken the responsibility of raising him, then you can surely figure out his likes and dislikes over time. Spend time bonding with him and be very patient with the outcome. Overnight, you son isn't going to love and fuss over you. So, keep raising him with a lot of love and a very supportive environment. At times, you will see him angry or stubborn bringing reference to the way his mother raised him; that is not the time to be angry but to hear him out and actually agree with him. He is a child, why are you being one? Surely, you understand that this is a very confusing and challenging time for him...why not spend time finding ways to bond rather than get angry when he speaks to his mother? That is their unique relationship; don't stand in the way as your son as he grows older will hold you responsible for keeping him away from her.
Focus on building a connection with him...and if for some reason things get distressing and even more challenging, please take the help of a professional to help the family tide over this phase...
In the meantime, let your focus be on your son, his needs, his joys and sorrows and more...let his know and feel that you as a father will protect him and be there for him at all times...that will change a lot of things for him...

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

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Anu

Anu Krishna  |1203 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jan 20, 2024

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Dear Anu, My son is 17years and has a affinity towards his mother it seems. Whenever i ask any questions about his studies and plans he shouts at me and misbehaves. I have stopped talking to him because of this. I don't know whether he likes me or not. He seems very content with his computer and his friends.. How can i build a relation with him. Also same with my wife. She does not talk to my parents neither to nay of my relatives. I tried on many occasions to make her realize that this is not okay. My Father is 82 and is longing to talk to her and stay with us...I do not know what is the issue with her. I do not abject to anything she does. How can i convince her...
Ans: Dear Trilok,
Why are you so intent on making people be with you or like you? If they don't see value in you, it's their misfortune maybe. This is one line of thought.
Another line of thought could be: Are there other ways of actually connecting with them? You son perhaps may bond better with you over a sport that the two of you can play BUT may connect with his mother over a conversation. Do not expect the same kind of connection...he's your son...rather than complain about what's not happening, how about trying a different approach and make things happen. See what interests him and bond with him on that!
Now with what your wife does...you really must find out what makes her not want to talk to your father. Maybe instead, you can invite your father to stay and encourage a conversation between him and your wife. And please don't form an opinion that just because your wife refuses to talk to your father, your son refuses to talk to you. It's two very different situations...

Stopping to talk to your son or wonder what's wrong with your wife only means that you have managed to externalize the issue and you will soon find reasons to blame them for a failing relationship. Instead assume charge and do what it takes to bond with your family...it works!

All the best!

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Anu

Anu Krishna  |1203 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 26, 2024

Asked by Anonymous - Jun 21, 2024Hindi
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I got married in 2008. Our son was born in 2013. My wife was doing PhD at that time and we both took good care of him as we were staying in an academic campus. Upon completion, my wife moved away from our place with her job in 2018. Initial one year, everything was fine. I used to visit them once in a month as the place was far away. Later in 2019, she moved to a better job location with our son. This place was also far from my workplace. Due to some reasons, she started avoiding me and I could hardly meet them especially my son. I could talk to my son only once/twice every month and see him on average of every 4 months. She does not allow me talk to him over video call as well. My parents who had a great memory with their grandson also cannot talk to him, except after several persuasions by me, she visits my paternal home once or twice in a year. She takes our son to my parents house for an hour and never allows to stay with them. This is happening for the last 5 years. I am clueless as any movement to court might lead us filing a divorce, which will grossly hurt my parents. Sometimes I feel that I should wait for my son until he becomes 18 (he is 11 now) and see him once he goes out of his mom's house. Requesting for your suggestion.
Ans: Dear Anonymous,
I truly believe that distance can drive a huge gap between two people in a relationship. Long distance relationships (LDRs) are not for everyone and if someone is into something like this, they would have or must have an honest chat about it.
Not being able to be in the company of one another, not being able to share their day with the other, not being able to communicate as often as they want can lead them to become their own person and highly independent not really missing their partner. It can also lead them to find other pair/pairs of ears almost replacing their partner at that moment. Repeating this over time can lead to romantic associations outside of the relationship as well.

Now, what could have caused your wife to take a step to be isolated from you, only you will know...and what has made you wait for 5 years to actually realize that something must be done about this?

Anyway, talk to your wife...I mean, how long can she avoid you? Meet her at a common place, like at your parents' place so that it does not flare up into a big thing. Take the opportunity to try and win your family back. Maybe it was a simple misunderstanding that caused all of this. Only when you try to find out, will you know, yeah?

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

Anu

Anu Krishna  |1203 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 06, 2024

Asked by Anonymous - Jul 29, 2024Hindi
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Hello AnuJi I am 42 and my wife is 40 and we have an 8 year old son. We have recently been staying separately since 3 months after a lot of tensions and my wife's emotional breakdown. Our relationship has been strained since beginning. Though am very loving, caring and devoted to my wife I have possessiveness issues. My wife has been sacrificing a lot on her own accord for our marriage but during her emotional breakdown we learnt the hard way that she was feeling suffocated in all this. She even hurt herself and that is the reason I am very careful in approaching her for reconciliation. My son is with me which gives me solace but I am worried he will miss out on mother's love and holistic development this way. I am unable to create a pathway between me and my wife because she is currently very caustic, bitter, insulting towards me and my family and not willing to hear my side of the story / talk peacefully / agree for counseling etc. I considered having the child stay with her but she has a terrible temper and history of beating the child, sometimes severely and hiding this from me till I found out. I later came to know my child is developing a sulking personality because of this but being a child he is naturally affectionate towards her mother (infact he developed an attitude that he deserves to be beaten and slapped - something he is coming out of gradually now he is with me). Infact parenting style mismatch and arguments was one of the reason of our split. At this moment I want to do whatever possible to bring the family together - short of feeling humiliated / not being heard / agreeing to child being beaten. My wife and me are well educated and even nature-wise she has good qualities as well. I just don't understand how we seemed to have ended up in this mess so abruptly. I do not know whether I should adopt a conventional attitude of saving the family, compromising etc or prioritise individual happiness and adopt a more liberal approach of staying separately even if child misses out on one of our day to day love and care.
Ans: Dear Anonymous,
Let's put things into perspective.
1. You and your wife are living separately due to a few challenges
2. Your son lives with you but you feel that the family living together is the best
3. Your wife resorts to punishing your son which is impacting him
4. Counseling is not an option

Which means that you have to step in as your own Counselor. Bringing the family together has to be your journey as your wife is not a part of it as yet. A lot of empathy, patience and the challenge of understanding your wife's emotional breakdown. Obviously, there's something going on deep within her that is making her resort to hurting herself which is cause for concern indeed. Tread carefully but firmly when you speak with your wife. Let her know your genuine intent of bringing the family back together and how much you would appreciate her support in all of this. Encourage her to start working as this will offer her some respite from caring for the family and also set her up professionally.
Give a patient ear to her complaints or outbursts (a very difficult thing for you to do).

What I have stated above is what works much better with a professional as you will have his/her guidance through the process. But give this a shot by yourself and see where it leads you to. Who knows, after a while, she might agree to see a professional...Give this a shot...

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

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Ramalingam

Ramalingam Kalirajan  |6636 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 16, 2024Hindi
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Sir my age 40 years how much amount invest in sip after 20 years got 5 cr.
Ans: At the age of 40, you are in a great position to start planning for your financial future. Achieving Rs 5 crore in 20 years is definitely possible with disciplined investments. To achieve this goal, investing through SIPs (Systematic Investment Plans) in equity mutual funds can be your best option. Let’s dive into how much you need to invest and how to plan it right.

How Much Should You Invest?
To accumulate Rs 5 crore in 20 years, you need to invest regularly in equity mutual funds. Over long periods, these funds tend to offer higher returns, typically around 10-12% annually.

If we assume a return of 12% per year, you might need to invest around Rs 50,000 per month in SIPs to reach your goal of Rs 5 crore in 20 years.

Now, Rs 50,000 may seem high, but remember, you can start smaller and gradually increase your SIPs. Let’s look at how this can be done.

Start Small, Increase Over Time
If you cannot invest Rs 50,000 right away, don’t worry. You can start with a smaller amount, like Rs 20,000 or Rs 30,000 per month. Then, increase your SIPs every year by a certain percentage, like 10%. This approach is called SIP Top-up, and it allows you to invest more as your income grows. By doing this, you’ll eventually reach the required monthly investment over time.

Why Choose Actively Managed Mutual Funds?
You might wonder, “Why should I choose actively managed funds over index funds or direct mutual funds?”

Actively managed mutual funds are managed by professional fund managers who constantly monitor and adjust the fund’s portfolio. This allows them to perform better in volatile markets. Index funds, while cheaper, do not have this flexibility, which could limit your returns in the long run.

Investing through a Certified Financial Planner who can guide you with regular funds is also a safer option than going for direct mutual funds. The expertise of a CFP ensures your portfolio is well-diversified, managed effectively, and aligned with your financial goals.

Avoiding Direct Funds
Direct mutual funds may seem appealing due to lower costs, but they lack professional guidance. Without a CFP or professional manager, you might miss crucial market signals or fail to rebalance your portfolio at the right time. Investing in regular funds with the help of a Certified Financial Planner ensures that your investments are optimally managed.

Diversify Your Investments
While equity mutual funds should form the majority of your portfolio for growth, it’s essential to diversify your investments across different categories. This could include:

Equity Mutual Funds for long-term growth.

Debt Funds for stability and to reduce risk as you approach your target.

This diversification will protect your investments from market volatility and give you a more balanced portfolio.

Tax Implications of Mutual Funds
Understanding the tax rules is crucial to managing your investments efficiently.

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

Debt Mutual Funds: Both LTCG and STCG are taxed as per your income tax slab.

Knowing these tax rates can help you plan your withdrawals and avoid unnecessary tax burdens.

Key Points to Stay Focused On
Discipline: Make sure to invest every month without skipping your SIPs. Over time, your money will grow, and even small amounts will compound into a larger corpus.

Don’t Panic: Markets can be volatile. However, do not panic and withdraw during market corrections. Stay invested for the full 20 years to reap the benefits of compounding.

Review Regularly: Meet with your Certified Financial Planner at least once a year to review your portfolio. This ensures you stay on track and make adjustments as needed.

Final Insights
At the age of 40, investing Rs 50,000 per month in equity mutual funds through SIPs can help you accumulate Rs 5 crore in 20 years. If this amount seems high initially, start smaller and increase your SIPs each year. Avoid index funds and direct mutual funds to ensure you get the best professional advice and fund management.

Focus on disciplined investing, avoid panic during market fluctuations, and diversify your portfolio for stability.

Best Regards,

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

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Ramalingam

Ramalingam Kalirajan  |6636 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Money
I am 39 yrs old, i have 8 yrs and 6yrs two daughters for my daughters education and marriage purpose how can invest in SIP? I want 5 to 6 crore in next 15 to 20 yrs. Please suggest.
Ans: You have two daughters, aged 8 and 6, and you want to ensure their future, especially for their education and marriage. Your goal is to accumulate Rs 5 to 6 crore over the next 15 to 20 years through Systematic Investment Plans (SIP). This is a thoughtful and commendable goal, as it reflects your long-term commitment to your daughters' well-being.

Here’s how you can approach this goal in a well-structured, smart, and manageable way.

Understand the Power of SIP
SIP is a powerful and disciplined way to invest. It allows you to invest a fixed amount regularly, providing the benefit of rupee cost averaging and compounding over time. By starting early, you give your investments more time to grow, which works well for your 15 to 20-year horizon.

But remember, achieving a target of Rs 5 to 6 crore will require careful planning, consistent investment, and patience. It’s not just about how much you invest but also where you invest.

Step 1: Split Your Goals – Education & Marriage
It’s best to divide your overall goal into two parts:

Education (10 to 12 years away): Start saving now, so you have a good corpus ready when your daughters are around 18 years old.

Marriage (15 to 20 years away): You have a slightly longer horizon for this, so investments here can be more aggressive.

By splitting the goals, you can allocate your SIPs accordingly. This strategy will allow you to track your progress better and rebalance if needed.

Step 2: Choose the Right Type of Funds
To maximize your chances of reaching Rs 5 to 6 crore, it’s essential to select the right types of funds. Let’s break it down:

1. Equity Mutual Funds (For Long-Term Growth)
Equity funds have historically outperformed other asset classes over the long term. Since your investment horizon is 15 to 20 years, you can afford to take a higher risk for higher returns. Actively managed equity funds, especially in categories like large-cap, flexi-cap, and mid-cap funds, can help you grow your wealth significantly.

Why not Index Funds? While index funds are low-cost, they tend to give average market returns. Actively managed funds, with the right management, can deliver better returns. A Certified Financial Planner can guide you in selecting funds managed by experienced professionals, which can help in outperforming the market over time.

2. Balanced Advantage Funds (For Balanced Approach)
You can also include balanced advantage funds. These funds shift between equity and debt based on market conditions, ensuring a more balanced approach. They reduce the risk in times of market volatility and provide steady returns.

This is a great choice to have in your portfolio for your daughters' education, as the goal is relatively nearer compared to marriage.

3. Debt Funds (For Stability Closer to Goal)
As you approach your goal, say in the last 5 years before you need the money, it’s a good idea to shift some portion of your investments into debt funds. These funds offer stability and protect your corpus from market downturns.

You can start with a small portion in debt funds and increase it gradually as you get closer to the time when you need the money.

Step 3: Plan the SIP Amount
To reach Rs 5 to 6 crore in 15 to 20 years, you will need to invest a significant amount each month. The actual amount will depend on the returns you get from your investments, but a Certified Financial Planner can help you estimate this based on your risk profile and target amount.

You can start with an amount that’s comfortable for you and increase it gradually every year. For example, a 10% step-up in your SIP each year can make a big difference to the final amount. The earlier you start, the smaller the monthly investment required.

Step 4: Diversify Smartly
It’s essential to diversify your investments across different fund categories and asset classes. This reduces the overall risk and ensures that if one part of the market is down, the others can balance it out.

Diversify across sectors (e.g., banking, technology, pharma) within your equity funds to capture growth from different parts of the economy.

Diversify across fund managers to avoid over-dependence on one strategy or style of investing.

Diversification can help you achieve your goal without exposing your investments to unnecessary risk.

Step 5: Use Regular Funds with Professional Guidance
While direct funds seem attractive due to lower costs, investing through a Certified Financial Planner (CFP) using regular funds ensures you get the right guidance. A CFP can:

Help you select funds tailored to your specific goals.

Offer advice on market conditions and whether you need to make adjustments.

Provide periodic reviews of your portfolio and rebalance it when needed.

The extra cost of regular funds is justified by the personalized advice and expertise you get, ensuring you stay on track to meet your financial goals.

Step 6: Monitor and Review Regularly
Once you start your SIPs, you should not simply forget about them. Review your portfolio at least once a year with your Certified Financial Planner. This helps ensure that:

Your investments are performing as expected.

Any changes in your life or financial situation are accounted for.

You are on track to meet your goals, or you need to make adjustments.

Remember, the market will have ups and downs, but staying focused on your long-term goals is key.

Tax Implications
As you invest in mutual funds, it’s important to be aware of the tax implications.

For equity mutual funds, long-term capital gains (LTCG) above Rs 1.25 lakh are taxed at 12.5%, while short-term capital gains (STCG) are taxed at 20%.

For debt mutual funds, both LTCG and STCG are taxed as per your income tax slab. This means you’ll need to plan your withdrawals carefully to minimize tax liabilities.

Final Insights
You’ve taken a significant step by planning for your daughters’ future. With a well-structured investment plan, you can meet your goal of Rs 5 to 6 crore over the next 15 to 20 years. Here’s a quick recap of what to do:

Split your goals into education and marriage for better tracking.

Choose a mix of equity, balanced, and debt funds for diversification.

Start SIPs with an amount you can manage, and increase it yearly.

Work with a Certified Financial Planner to ensure you stay on track.

Review your portfolio regularly and be aware of tax implications.

By following this plan, you’ll be in a strong position to provide for your daughters’ education and marriage, while also growing your wealth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

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Ramalingam

Ramalingam Kalirajan  |6636 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 16, 2024Hindi
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I'm 31 years, my salary is 40k, I want make 2cr with in 15 years, how much amount shall I put as SIP?
Ans: Let's break down how a 31-year-old with a monthly salary of Rs 40,000 can accumulate Rs 2 crore in 15 years using SIPs (Systematic Investment Plans). We’ll focus on achieving your goal in a simple, clear way, with practical advice.

Understanding Your Financial Goal
Your goal is to accumulate Rs 2 crore in 15 years. This is ambitious but achievable. The key is to regularly invest in the right instruments. SIPs are an excellent tool to build wealth over time.

At your current age of 31, you have the advantage of a long investment horizon. This allows you to benefit from compounding, where your returns generate further returns. Consistent, disciplined investing is essential to reach this target.

How Much Should You Invest Monthly?
Let’s get to the heart of the matter: How much should you invest?

To reach Rs 2 crore in 15 years, you need to invest in equity mutual funds that can generate good long-term returns. Equity mutual funds have historically offered returns of 10-12% over long periods.

Based on an expected return of 12%, you might need to invest approximately Rs 30,000 per month in SIPs. This amount might seem significant compared to your Rs 40,000 salary, but let’s break it down.

Start Small: If Rs 30,000 per month seems too high initially, start with a lower amount, say Rs 10,000 or Rs 15,000. Increase the SIP amount gradually as your income grows. This method, called “SIP Top-up,” helps you adjust your savings over time.

Increase Yearly Contributions: Even a 10% increase in SIPs every year can significantly improve your chances of reaching your goal. So, if you start with Rs 10,000 per month, aim to increase it to Rs 11,000 next year, and so on.

Why Actively Managed Mutual Funds?
Investing in actively managed mutual funds through a Certified Financial Planner is crucial. These funds have professional fund managers who constantly monitor and adjust the portfolio. This gives them an edge over index funds, especially in volatile markets.

Actively managed funds can outperform index funds over time, providing higher returns. When investing directly in funds without professional help, there’s a risk of not choosing the right ones or missing out on potential market adjustments. That’s why investing through a Certified Financial Planner ensures that your portfolio is regularly monitored and optimized.

Avoid Direct Mutual Funds
Some people might recommend direct mutual funds to save on commissions. However, the savings from direct funds may not justify the risk of not having professional guidance. When investing through regular funds with the help of a Certified Financial Planner, you get expert advice on rebalancing and portfolio management. This ensures your investments align with market trends and your financial goals.

Diversification and Risk Management
To reach Rs 2 crore in 15 years, it’s important to focus primarily on equity mutual funds for growth. However, a well-diversified portfolio will also contain some debt funds for stability, especially as you approach your goal.

This reduces risk and ensures that not all your investments are exposed to market fluctuations. While equity funds provide growth, debt funds provide safety and balance to your portfolio.

Tax Implications to Consider
It’s also important to consider the tax implications of your investments.

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

Debt Mutual Funds: LTCG and STCG are taxed as per your income tax slab. Understanding these tax implications will help you plan your withdrawals more effectively.

Best Practices for Reaching Rs 2 Crore
Discipline: The key to success with SIPs is discipline. Ensure that you invest regularly and do not skip your SIPs. Over time, even small contributions can grow into a large corpus.

Stay the Course: Markets will go up and down, but it’s important not to panic and withdraw your investments prematurely. Stick to your plan for the full 15 years to benefit from market growth.

Top-up Your SIPs: Every year, try to increase your SIP amount as your salary increases. This way, your investments keep pace with inflation, and you build a bigger corpus faster.

Finally
Your goal of Rs 2 crore in 15 years is achievable if you invest Rs 30,000 monthly in actively managed mutual funds. If this seems too high initially, start with a smaller amount and increase it gradually. Avoid direct funds and index funds, as professional guidance through a Certified Financial Planner will provide better long-term growth.

By following these principles, you can stay on track and build wealth steadily over time.

Best Regards,

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

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Ramalingam

Ramalingam Kalirajan  |6636 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Asked by Anonymous - Oct 16, 2024Hindi
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46 years old woman in private job earning 76k take home salary, with a 6 year old daughter. Sukanya, PPF, MF and some local investment around 50 k monthly, planning to retire at 60 years with a plan of 1 lakh monthly retirement. Where snd how much should be saved.
Ans: Today, we’ll discuss a 46-year-old working woman with a 6-year-old daughter, earning Rs 76,000 per month. She invests around Rs 50,000 each month in Sukanya Samriddhi Yojana, PPF, and mutual funds. She has a plan to retire at 60 and receive Rs 1 lakh every month during her retirement.

So, how can she achieve this?

Let's break this down.

Assessment of Current Investments
Firstly, she’s already on a good track with investments. Sukanya Samriddhi Yojana for her daughter’s education is a smart move, and PPF provides a secure, tax-saving instrument with assured returns. However, relying too much on safe options like these might not provide the aggressive growth needed for a higher retirement corpus.

She’s also investing in mutual funds. This is where the real growth potential lies. Mutual funds, particularly equity-oriented ones, can provide the necessary boost. But, it’s essential to ensure she’s in well-diversified, actively managed mutual funds and not just index funds, which might limit returns in the long term.

The Right Mix of Safety and Growth
So, how much should she save and where should it go?

Sukanya Samriddhi and PPF should continue. They provide stability and safety. But for higher growth, she should focus more on mutual funds.

Mutual Funds: Actively managed funds are key here. These funds have the potential to outperform index funds, especially during market volatility. Instead of investing directly, she should consider investing through a Certified Financial Planner. They provide regular monitoring, helping her adjust her portfolio as needed.

Increase SIPs: She’s investing Rs 50,000 monthly now. But to achieve Rs 1 lakh monthly retirement, she should aim to increase this gradually over time. Ideally, at least Rs 30,000 should go toward mutual funds, particularly equity-oriented funds for growth.

Long-term Goal: Since she has 14 years until retirement, her investments need to focus on high-growth options, especially for the next 7-10 years. Equity mutual funds can help here. After that, she can slowly move to safer debt funds to preserve the capital.

Avoid Direct Investments: Direct funds may seem appealing because of lower fees, but they often lack the professional guidance that regular funds offer through a Certified Financial Planner. Investing in regular funds gives you access to expert advice and continuous monitoring. This ensures your investments align with your goals and market conditions.

Taxation Insights
Understanding tax implications is also important for maximizing returns.

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

Debt Mutual Funds: Both LTCG and STCG are taxed as per your income tax slab. Hence, careful planning and strategy are crucial.

Final Insights
To ensure she meets her retirement goal of Rs 1 lakh per month, she should focus on a well-balanced investment strategy. Increasing SIPs in actively managed mutual funds, along with continuing Sukanya and PPF, will help her build a solid corpus. Tax efficiency and professional guidance will further maximize her returns.

Best Regards,

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

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Ramalingam

Ramalingam Kalirajan  |6636 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 16, 2024

Money
Sir I have been investing in mutual funds for the last 5 years. Now the corpus is around 5.5 lakhs . I have the following funds in my portfolio. Please asses my portfolio or need switch. 1. Nippon india large cap fund 2000 2. Mirae asset large cap 3000 3.Axis elss tax saver 1000 4. Kotak elss tax saver 1000 5. Axis Blue chip fund 6. Jm flexi cap fund 2200 7. Motilal oswal mid cap 2000 8. Axis mid cap 1000 9. Icici prudential passive multi asset for regular growth one time amount 5000 . 10.Sbi contra fund 2000 Sir i need to build a corpus of 1.5 crore in next 12 years. My age is now 38. Please review .
Ans: You have built a diversified portfolio with a combination of large-cap, mid-cap, ELSS, and flexi-cap funds. Each fund serves a specific purpose, but a review will help optimize your investments to meet your goal of Rs. 1.5 crore in 12 years. Let’s assess each category.

Large-Cap Funds
Nippon India Large Cap Fund – Rs. 2,000 per month

Mirae Asset Large Cap Fund – Rs. 3,000 per month

Axis Bluechip Fund

These funds focus on large-cap companies, offering stable growth but with relatively lower risk. While having multiple large-cap funds ensures stability, it may lead to overlap in the portfolio. You can consider consolidating them into 1 or 2 funds to reduce redundancy. Mirae Asset and Axis Bluechip are solid options for continued long-term investments.

ELSS Funds
Axis ELSS Tax Saver – Rs. 1,000 per month

Kotak ELSS Tax Saver – Rs. 1,000 per month

ELSS funds offer tax benefits under Section 80C. However, having two ELSS funds for Rs. 2,000 might not be necessary. You can choose the one with consistent performance and focus your ELSS investment there. Axis ELSS has performed well historically, but assess both before making a decision.

Mid-Cap Funds
Motilal Oswal Mid Cap – Rs. 2,000 per month

Axis Mid Cap – Rs. 1,000 per month

Mid-cap funds offer higher growth potential than large-cap funds, but with more risk. Holding two mid-cap funds is a balanced strategy, but since the Axis Mid Cap has been consistently strong, you can consider increasing your SIP here. Motilal Oswal Mid Cap is a good performer but may need to be watched for volatility.

Flexi-Cap Funds
JM Flexi Cap Fund – Rs. 2,200 per month
Flexi-cap funds give fund managers the flexibility to invest across market capitalizations, reducing concentration risk. This fund provides good diversification. Review its performance regularly, as flexi-cap funds can vary in returns based on market conditions.

Passive Multi-Asset Fund
ICICI Prudential Passive Multi-Asset Fund (One-time investment of Rs. 5,000)
This fund combines equity, debt, and gold to balance risk. While passive funds reduce the need for active monitoring, they may not provide the same growth potential as actively managed funds. Actively managed funds tend to perform better in dynamic markets, which could better align with your long-term goal of wealth creation.

Contra Fund
SBI Contra Fund – Rs. 2,000 per month
Contra funds follow a contrarian investment strategy, buying when others are selling. While this can provide significant gains during market recovery, contra funds may experience long periods of underperformance during market booms. It's a high-risk option that may not suit every portfolio. Regularly review its performance to ensure it fits with your investment goals.

Suggestions for Improvement
Consolidate Funds: You have multiple large-cap and ELSS funds. Streamline to 1 or 2 per category to reduce overlap and improve focus. A well-performing large-cap fund and one ELSS should suffice.

Increase SIP in High-Growth Funds: Focus more on mid-cap and flexi-cap funds, as they have higher growth potential. Increase your SIP in Axis Mid Cap and JM Flexi Cap, as they can boost your returns over the long term.

Review Contra and Passive Fund: SBI Contra and ICICI Passive Multi-Asset may not align with your goal of aggressive wealth creation. Consider switching to funds with more aggressive growth profiles, like a focused equity fund or a small-cap fund, to maximize potential returns.

Building a Rs. 1.5 Crore Corpus
To achieve your goal of Rs. 1.5 crore in 12 years, you'll need to invest aggressively. Based on your current portfolio, the estimated return would range between 10-12% annually, depending on market conditions and fund performance. To reach Rs. 1.5 crore in 12 years, you may need to increase your monthly SIP amount to around Rs. 20,000-25,000, depending on the returns.

Steps to Build the Corpus:
Increase SIP Contributions: To reach your goal, gradually increase your SIP amount over time. Aim to raise your SIP to Rs. 20,000-25,000 per month.

Rebalance Annually: Revisit your portfolio at least once a year. Make sure your portfolio remains aligned with your long-term goal.

Stick to Long-Term Investment: Avoid switching funds frequently. Stay committed to your investment horizon, and let the power of compounding work for you.

Emergency Fund: Ensure that you have an emergency fund in place, covering at least 6 months of expenses. This will prevent you from withdrawing your investments during unforeseen events.

Tax Planning with ELSS
You are already investing Rs. 2,000 in ELSS funds, which qualifies for tax deductions under Section 80C. Continue this as part of your tax-saving strategy, but make sure it fits into your overall portfolio without over-diversifying.

Final Insights
Your portfolio is well-diversified but can be simplified by reducing overlapping funds.

Focus on high-growth funds like mid-cap and flexi-cap to achieve your long-term goals.

Regularly review and rebalance your portfolio based on performance and market conditions.

Increase your SIP contributions gradually to ensure you are on track for your Rs. 1.5 crore goal in the next 12 years.

Avoid frequent switching; give your investments time to grow.

Tax planning with ELSS funds is good, but one fund is enough for your tax-saving needs.

Best Regards,

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

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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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