Hello there! There is an introverted boy I have liked for over a year now. 5 month ago I asked him out on a date and he rejected me. He said he wasn’t dating anyone at the moment. It is true, he never dated anyone and hasn’t since then. Now he is acting strangely and hangs out with me more, stares at me, seems nervous, has hour long conversations with me about his dreams and goals, and his family. We know each other a lot better now but he is confusing me completely. Is there something i could say to get an answer? It is driving me crazy. There is another guy who likes me and I feel so bad because I like him too but not as much as this other guy!!

Ans: I appreciate your thoughtful comparison of ETFs versus mutual funds. You are asking a very practical question and it shows good financial awareness. Let’s look at this carefully so you get clarity without confusion.

» What ETFs and index-linked products really do
– ETFs that track midcap and smallcap indices simply mirror the performance of those market benchmarks.
– There is no active management or stock picking to protect you during weak markets.
– When indices fall sharply, ETFs will fall by almost the same percentage. There is no defensive action.
– Index-linked products may seem low maintenance, but they do not adapt to market changes.

» Why actively managed midcap and smallcap mutual funds are different
– Actively managed funds have professional managers who choose stocks based on research, valuation and risk.
– They can adjust exposure to sectors and companies depending on market conditions.
– This means that in volatile phases, they can protect capital better than index trackers.
– Over long periods, learning to stay invested in well-managed funds often leads to better risk-adjusted outcomes.

» The challenge of “top performing” funds changing over time
– It is true that past performance ranking changes every year. No mutual fund stays number one forever.
– This is why selection should be based on long-term consistency, process, risk management and quality of management. Returns alone should not be the only criterion.
– A Certified Financial Planner helps you choose funds with good fundamentals, not just recent high returns.

» About monitoring and switching funds
– Frequent switching based only on short term performance is not a strong investment habit.
– Every switch can trigger capital gains tax for equity funds if sold within one year at higher short term tax rate, or after one year you still need to consider LTCG above Rs 1.25 lakh at 12.5%.
– Good investing means giving time for your chosen strategy to work unless there is a clear reason to change.

» Why ETFs are not always better for long-term goals
– Just because ETFs avoid switching does not mean they give better returns after tax. They still rise and fall strictly with the index.
– In falling markets, index trackers cannot reduce risk, but actively managed funds can.
– Even though ETFs may look simple, they can lead to larger drawdowns when markets are weak since they cannot adapt.
– In the long term, protecting capital during weak phases is as important as chasing returns.

» When actively managed funds make sense in midcap and smallcap space
– If you have a long-term horizon (10 years or more), actively managed funds can add value through stock research and risk calibration.
– They aim for better risk-adjusted returns over full market cycles, not just bull phases.
– With a CFP’s guidance, you can build a diversified portfolio that balances midcap, smallcap and broader equity exposure without frequent tax-triggering switches.

» Practical investor behaviour perspective
– ETFs can make investing easy, but easy does not always mean better outcomes.
– Investors often buy ETFs and then fail to rebalance or adjust when markets change.
– With actively managed funds, the fund manager’s decisions complement your long term holding discipline and take some burden off you.

» Final Insights
– Avoid choosing investments just by how they are labelled (ETF or mutual fund). Look at what they actually do in markets.
– For midcap and smallcap exposure over 10 years, actively managed funds tend to offer better alignment with long-term goals and risk control than index ETFs.
– The idea that ETFs avoid switching costs is true, but it is not a strong enough reason to ignore the flexibility and risk management that active funds provide.
– Tax impact matters, and with wise planning you can manage gains efficiently without frequent switches.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: Indian residents investing in foreign shares and earning capital gains taxed based on holding periods. If it is hold for 24 months (it will be considered as long-term) and taxable at 12.5%. Dividends are taxed at applicable slab rates and foreign tax credits may apply subject to fulfillment of certain conditions.

Ans: Hi Madam,
Greetings.
Changing a name is not as simple as going to a cyber café and making a quick change. Legally, you need to go through a proper process. I recommend that you contact a notary public for assistance with this matter.

You will need to publish an advertisement in a newspaper indicating that your baby's name has been changed from X to Y. This advertisement must be presented to the post office as part of the name change process. Therefore, please consult with a notary public in your area for guidance.

Best regards.

Ans: SP Jain is a good institute that you can do MBA in Dubai. Other good institutes include London Business School, University of Wollongong in Dubai (UOWD), and Hult International Business School. Other institutes include UOWD, Amity University Dubai, and MAHE Dubai - but they may not be among the better ones. Getting scholarship in top colleges would be difficult unless you have a stellar profile.

Ans: CMA US has its usefulness in India, but it is limited. Mainly useful in compnies like Big 4 or similar firms involved with MNC firms. It will be more useful if he plans to pursue his future education abroad and build his career there.

Ans: Your question seems unclear and odd. Please rephrase it and send it again. Thank you
BEST WISHES.

Ans: We can't say anything about the faculty of the Madras Institute. It is better to visit the campus in person and talk with the students directly, if you wish to opt a course at the said institute. The institute has a good track record of placement.

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

Ans: First, I appreciate your discipline in investing and reviewing your funds soon after you started. That habit itself is a strong pillar of long-term financial success.

» Understanding your current investment situation
– You invested Rs. 50,000 in an actively managed mid-cap fund (Motilal Oswal Midcap Fund) in July 2025
– You also invested Rs. 50,000 in a flexi-cap equity fund (HDFC Flexicap Fund) at the same time
– The mid-cap fund is currently showing negative returns
– The flexi-cap fund is showing around 4–5 percent return

» Why performance can differ between funds
– Mid-cap funds tend to be more volatile, especially over short periods
– Early investment performance is not a reliable signal of future outcomes in equity funds
– Actively managed funds can differ significantly based on stock picks, sector bets and market cycles
– Equity funds need time (typically 5+ years) to smooth out ups and downs

» What to assess before deciding to continue or switch
– Time horizon: How long can you stay invested? Equity should ideally be for medium to long term (5 years or more)
– Risk appetite: Mid-cap funds swing more than diversified equity funds and need higher risk tolerance
– Fund objectives and style: Does the fund’s approach match your goals and conviction?
– Consistency of performance: Compare returns over multiple periods (1 year, 3 years, 5 years) relative to peers, not just since inception
– Fund manager experience: Long-term funds often benefit from stable and experienced management

» Should you remain invested or switch? (Practical assessment)
– For the mid-cap fund showing negative returns early:

Equity markets can move up and down in the short term. A few months of red should not be the sole reason to exit if your time horizon is 5 years or more.

If your comfort with volatility is low, consider shifting part or all of the amount to a less volatile equity category or balanced equity oriented option.
– For the flexi-cap fund with modest positive return:

Flexi-cap funds dynamically adjust allocation across market caps and help moderate volatility.

If the fund continues to align with your risk and goals, holding it makes sense.
– Do not make decisions based on short-term returns alone. Give equity adequate time to perform.

» Why actively managed funds serve you better in your case
– Market benchmarks (like index funds) simply mirror market movements without risk management choices. In falling phases, index funds have no active decision to protect capital.
– Actively managed funds can take defensive steps when markets weaken, and reallocate to sectors or stocks with better risk-reward prospects.
– For individual investors, this active oversight brings discipline and better behavioral support, especially in turbulent markets.

» How to decide if switching is needed (Step by step)
– Re-evaluate the mid-cap fund’s long-term prospects rather than recent performance
– Compare its performance with similar actively managed mid-cap peers, not the index
– If you find its strategy, risk profile or management lacking, consider a more diversified actively managed equity option suitable for your horizon
– Avoid switching too frequently, as this can erode returns and incur costs

» Final Insights
– Stay invested if your time horizon is 5 years or more and you can accept volatility
– Early red in mid-cap is not a reason by itself to exit, but do assess comfort level
– Actively managed equity funds offer better risk management than passive index approaches
– Periodic review every 12–18 months, not monthly, should guide your decisions

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: CGC University Mohali is an okay fallback option especially if you don’t have many better private college choices