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Dr Ashish

Dr Ashish Sehgal  | Answer  |Ask -

Relationships Expert, Mind Coach - Answered on Jun 02, 2023

Ashish Sehgal has over 20 years of experience as a counsellor. He holds a doctorate in neuro linguistic programming, mental health and social welfare.He is certified in neurolinguistics by both the Society of NLP and the American Board of NLP.... more
Asked by Anonymous - May 08, 2023Hindi
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Relationship

Someone is from Oman and very less known to me, has proposed my sister for marrying. He is also purchasing a land in Oman in my sister name. But i am confused and worried that how can one do this before marriage. He is coming alone for marriage as told by him their parents are ill and can't travel. He called my younger brother to visit Oman and showed his offices and told him that he is doing some webshop business. Please help and suggest me how to get more information about him so we could avoid any mishappning.

Ans: It's understandable that you have concerns about your sister's potential marriage and the person proposing to her. It's essential to gather more information and ensure her safety. Here are some steps you can take to get more information and make an informed decision:

Communicate openly with your sister: Talk to your sister about your concerns and have an open and honest conversation with her. Make sure she understands your worries and the need for caution.

Research online: Conduct a thorough online search about the person proposing to your sister. Look for any social media profiles, professional information, or any other online presence that may provide insight into his background and character.

Talk to your sister's suitor: If possible, try to have a direct conversation with the person proposing to your sister. Ask him about his background, family, and other relevant details that will help you understand him better. Listen carefully to his answers and observe his demeanor.

Verify his claims: Ask for documentation or proof of the land purchase in your sister's name. This will help confirm if the claims are genuine. You can also consider contacting authorities in Oman to verify the land purchase if needed.

Involve a trusted third party: If possible, involve a trusted family member or friend who can act as a mediator or guide during the process. They can help gather information, ask relevant questions, and provide a different perspective.

Seek advice from local authorities or legal professionals: Consult with local authorities or legal professionals who can guide you on the legal aspects of the situation and provide advice on how to proceed.

Consider a background check: If you still have concerns and doubts, you may want to consider hiring a professional background checking service to gather more information about the person proposing to your sister. They can help verify his identity, background, and any potential red flags.

Remember, it's crucial to approach this situation with sensitivity, care, and open communication with your sister. Ultimately, her happiness and safety should be the top priority, and gathering more information will help you make an informed decision.

You may like to see similar questions and answers below

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 11, 2023

Asked by Anonymous - Sep 10, 2023Hindi
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Hi Anu, I am a 40 year old man (never married) who got in touch with a 39 year old woman on a matrimony site. On the site, her marital status was Never Married but as we chatted suddenly she told me about her first marriage that lasted for a month and now she has divorced that person due to dowry issue. I was taken back with this concealed information but continued to chat with her. One day, I happened to see a pic of her with her cousin brother on Instagram. There was a cake right in front of them that mentioned Happy Anniversary. I asked her about it. She first said it was for Birthday Anniversary. Then she said, the cake shop guy made a mistake and then she said that her cousin brother said 'Tumne bhai behen ka rishta ka ram naam satya hain kar di'. I'm confused now, is this cousin brother actually her husband only or cousin brother. After asking her about this, all she did was delete that pic from Instagram and she said it is her cousin brother only. I then asked her to show her divorce papers, she claims it is with her father in some locker and is confidential, so cannot be shared. She lives in Kolkata and I stay in Mumbai and to take things forward wrt marriage she wants to meet me at Kolkata but I'm confused with all this. Also, within few days of chatting with her she started calling me baby, she claims to have falled in love with me and also suggested we do foreplay when we meet. We've been chatting since 5 months on WhatsApp and I gradually have developed feelings for her. On phone we have spoken twice and we had a video call also once. Please advise on how can I proceed. Is she a fraud?
Ans: Dear Anonymous,
It's difficult to figure out people even when you live with them for years...online connections are something else!

Now that there is a seed of doubt, your mind will not be at rest until you find ways of pacifying your thoughts. Do make that visit to Kolkata and figure out for yourself by meeting her in a public place so that there is no chance of anything going awkward.

Ask her all the questions that you have. And encourage her to ask you whatever she wants to as well. This will make it look not like an interrogation.
Also, in this meeting itself, place all your doubts about the picture and notice what she says and how she deals with it. My suggestion also would be to not rush into the physical aspect right now till you know more about her and her life. If her being a fraud is true, it will only complicate things as she might accuse of you being the one to initiate things physically. So make this trip about getting to know one another and if you are convinced that she is genuine, you may suggest that she can visit Mumbai the next time.

Make sure you give yourself time to make a decision. Online connections do happen; sometimes they are genuine and sometimes not! Which side of the spectrum is yours, you are going to have to figure it out...do just that...

All the best!

..Read more

Anu

Anu Krishna  |1318 Answers  |Ask -

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

Asked by Anonymous - Feb 14, 2024Hindi
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Hi Anu,I am 42 year old male and have been separated from marital relationship and i don't have children,since 13 years and living alone where my father and mother had passed away few years ago.I was searching for brides profile from matrimony websites and found a widowed woman who is selfemployed. I called and talked her. she is equivalent of my age.She has one son aged of 24.I was willing to marry her but she does not want to marry anybody rather she expressed her interest and consent to live in a cohabitation(Living together relationship).(She said that her son is a grown up boy and preparing for competitive exams and she loves him a lot,She added that it is not possible to convince him for marrying another person.I accepted it and said ok. Later on we had date and moved on.Whenever she come for a date she asks me to spend and buy apparels,asking me to recharge mobile,asking me to buy provisions ,watches and to pay water taxes of her house.I did it without hesitation and she asks me for gold ring and ear-studs.She is not having contentment and i feel that she is greedy and she does not shows any form of courtesy towards me and further she did not spend even a single rupee for me .I am worried that she is exploiting me.I was wondered and shocked that during a little discussion with her she said that she could move away from me at any point of time if she finds any other person whom she likes her.I was dejected.I said that i am not your Money wallet to swindle me.I am not ready to spend money to a girl who informs me that she will be leaving from me.I scolded her. Even when have planned to marry at that time the woman asks me that whether i am a dominating person and asking about the details of my earlier marriage and testing about my genuinity. Now the relationship has broken between us and i am very much worried that whether i have taken a correct decision or not from stepping away from her because whenever i like to see her she ask me to make surprises for her.In turn no love and affection is being received from her. Kindly advice me that whether i have taken correct decision from quitting her relationship or i have hurried a lot by taken a wrong decision. Please advice and guide me and do the needful in this regard.
Ans: Dear Anonymous,
You have done yourself a huge favor by leaving her and the connection with her. When you started to have doubts about her being greedy was the time that you knew that she was just taking advantage of your kindness.
She was clearly never serious about this association from the beginning and spending your money and demanding more is a clear RED FLAG that she was never interested in anything long-term and that it was a convenient as long as you met her needs through money.
What more proof do you want? Are you now still worried about the fact whether you taken the right decision or not?
Kindly invest time and energy in people who nourish you and let you grow in all areas of your life. Be wise...

All the best!

..Read more

Ravi

Ravi Mittal  |428 Answers  |Ask -

Dating, Relationships Expert - Answered on Sep 18, 2024

Asked by Anonymous - Sep 16, 2024Hindi
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Relationship
Sir, my best friend is a divorcee with 2 kids nearing teens. Kids shuttle between 2 homes. This friend found someone through some app. Henis about 48 and she is 42. She told me that he is a gentleman but she gets intimidated hile talking to him as he is a billionaire with a private Jet and stakes in hotels, airports, infrastructure, companies etc. He is single never married and lost his parents young. They haven't yet met in 2 months. He speaks as if he is married to her and talks about a common future. We tried to do some research but there's not much available. His company name and some other programs that he attended is visible. I am unable to convince her that this doesn't seem real. But she says things about him with so much confidence. I think she is smitten either by his wealth or maybe the prospect of someone confidently saying he wants to marry her. I don't know the reality but think that let a month or two pass. Advised her against going to meet him alone and not to sign up for anything. What is happening what's your advice.
Ans: Dear Anonymous,

It's great that you are looking out for your friend. You are right, it does seem too good to be true. You have every reason to be suspicious. And, I too would suggest not meeting up alone. This could easily be a scam or plot to dupe your friend. While we understand all of that, she is a grown adult and we cannot force her to stop seeing him. All you can do is continue advising her and offer to tag along, at least the first time when she finally meets this man IRL.

You can tell her that as the Founder of a dating app, I always urge users to be vigilant with people who portray themselves in a larger-than-life manner and suggest to never make any financial exchange or share sensitive information. You can also mention her kids' safety if that helps shake her.

I really hope she isn't being scammed though the possibility of that seems more than of it being real. Please be careful.

Best Wishes.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Mr. Patel ......I am 60 years of age. Can invest about 20 to 25k pm. Can you suggest a portfolio mix please in MF. Abhijit Guha
Ans: At 60, your primary goal should be wealth preservation and stable returns.
Generating a steady income for retirement is also crucial.
Balancing growth and safety in your portfolio is essential.
Assessing Your Risk Appetite

At this stage, you may prefer moderate to low-risk investments.
A small allocation to equity ensures inflation-beating growth.
Higher allocation to debt ensures capital protection and steady returns.
Recommended Portfolio Mix
Equity Allocation (30–40%)

Allocate 30–40% of your investment to equity mutual funds.
Opt for diversified or hybrid equity funds for stable growth.
Actively managed funds can outperform and adapt to market changes.
Avoid index funds as they lack flexibility and underperform in volatile markets.
Debt Allocation (50–60%)

Allocate 50–60% to debt mutual funds for consistent returns.
Choose funds with a track record of low volatility.
Debt funds suit your need for liquidity and safety.
Balanced Advantage or Hybrid Funds (10–20%)

Allocate 10–20% to balanced advantage or hybrid funds.
These funds adjust between equity and debt based on market conditions.
They provide a good mix of growth and stability.
Investment Strategy
Systematic Investment Plan (SIP)

Invest Rs 20,000–25,000 monthly through SIPs in selected funds.
SIPs reduce risk by averaging costs over time.
They also instil financial discipline in retirement planning.
Regular Portfolio Reviews

Review your portfolio every six months to a year.
Ensure funds align with your goals and risk tolerance.
Work with a Certified Financial Planner for professional guidance.
Emergency Fund Allocation

Maintain an emergency fund equivalent to 6–12 months of expenses.
Keep this in liquid or ultra-short-term debt funds for accessibility.
Tax Efficiency
Minimise Tax on Gains

Equity funds: Long-term gains above Rs 1.25 lakh taxed at 12.5%.
Debt funds: Gains taxed as per your income slab.
Plan redemptions to reduce tax liabilities.
Benefits of Actively Managed Funds
Higher Returns Potential

Actively managed funds aim to outperform market benchmarks.
Skilled fund managers adapt to market trends.
Flexibility and Professional Guidance

These funds adjust holdings based on performance and market dynamics.
Certified Financial Planners can guide fund selection and allocation.
Addressing Common Concerns
Avoid Direct Funds Without Expert Help

Direct mutual funds lack personalised support.
Regular plans offer professional guidance through MFDs and CFPs.
Ensure Portfolio Diversification

A well-diversified portfolio reduces risks and enhances returns.
Avoid over-reliance on a single asset class or fund type.
Final Insights
At 60, focus on preserving capital, ensuring stable income, and achieving moderate growth. A balanced mix of equity, debt, and hybrid funds can meet your goals effectively. Invest systematically through SIPs, and consult a Certified Financial Planner for periodic reviews. Diversification and tax efficiency will strengthen your portfolio.

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

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Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Money
Sir, I want to invest in shariah based funds or funds that will give returns without Interest which is prohibited in my faith. Can you please advise on ways to invest. I am 38 years old, wishing to work till 60 years. Currently employed in Middle east. I have a daughter of 7 years old. My dependants are my parents along with my wife and daughter. I dont have any debt. My next year goal is building a home for which I will save sufficient amount by next year . Please advise me where i can invest , for my retirement fund.
Ans: You wish to invest in Shariah-compliant funds and avoid interest-based returns. This aligns with your faith and values. Your financial goal includes building a home next year and planning for retirement.

Your focus is also on your dependents: wife, daughter, and parents.

Let us structure a detailed plan tailored to your needs.

Principles of Shariah-Compliant Investing
Shariah-based investing prohibits interest (riba) and promotes ethical investments.

Avoidance of Prohibited Activities:
Investments must not involve gambling, alcohol, pork, or other restricted sectors.

Equity-Based Investments:
Shariah-compliant funds invest in stocks of ethically governed companies.

No Fixed Returns:
Shariah investments rely on profit-sharing or equity appreciation, avoiding fixed interest income.

Professional Guidance is Key:
Work with a Certified Financial Planner experienced in Shariah-based investments.

Investment Options Aligned with Shariah
Shariah-compliant investment options cater to your values and financial goals.

Shariah-Based Mutual Funds:
Invest in funds screened for Shariah compliance. These avoid interest-generating or prohibited sectors.

Equity Markets:
Directly invest in stocks of companies that adhere to Islamic principles.

Gold Investments:
Gold, in physical or electronic form, is permissible and a stable investment.

Retirement Planning
Retirement planning requires a disciplined and structured approach for 22 years until you turn 60.

Shariah-Compliant Equity Funds:
Allocate a significant portion to equity funds for long-term growth.

Diversify Across Geographies:
Consider international Shariah-compliant funds to reduce country-specific risks.

Gold as a Hedge:
Allocate a small percentage to gold for portfolio stability during economic downturns.

Flexible Withdrawal Plans:
Shariah investments can be designed to provide regular income during retirement.

Investment Strategy for Different Goals
Building Your Home
You plan to save sufficiently by next year for this purpose.

Preserve Capital:
Use low-risk Shariah-compliant options like Sukuk or liquid Shariah funds.

Avoid Volatile Investments:
Equity investments are unsuitable for short-term goals like building a home.

Daughter’s Education
Your daughter’s education is a critical long-term goal.

Long-Term Shariah Investments:
Invest in equity-based Shariah funds for wealth growth.

Start a Dedicated Portfolio:
Separate this portfolio to ensure funds are available when needed.

Periodic Reviews:
Monitor the investment performance and adjust as her education timeline nears.

Retirement Corpus
Retirement planning requires consistent investments over the next 22 years.

High Allocation to Equity:
Invest 70%-80% in Shariah-compliant equity funds for higher returns.

Gradual Risk Reduction:
Shift to lower-risk gold investments as retirement approaches.

Automated Investments:
Use SIPs in Shariah-compliant funds to ensure disciplined investing.

Managing Family and Dependent Needs
Your parents, wife, and daughter depend on you financially.

Emergency Fund:
Maintain 12-18 months of expenses in a non-interest savings account.

Takaful Insurance:
Consider Takaful, an Islamic alternative to traditional insurance, for life and health cover.

Health Provisions for Parents:
Ensure adequate health coverage for your aging parents under Shariah principles.

Key Advantages of Shariah-Compliant Funds
Ethical Investments:
They align with Islamic principles and provide peace of mind.

Global Opportunities:
Shariah-compliant funds offer access to international markets for diversification.

Potential for Long-Term Growth:
Equity-based funds typically outperform fixed-income investments over the long term.

Avoiding Index and Direct Funds
Shariah-compliant funds are actively managed by experts. Avoid index funds and direct funds due to:

Limited Customisation:
Index funds follow benchmarks and cannot adapt to specific Shariah requirements.

Professional Expertise Needed:
Direct funds lack the oversight provided by MFDs and Certified Financial Planners.

Tax Implications for Shariah Investments
Although you reside in the Middle East, taxation may apply if you invest in India.

Equity Investments:
LTCG above Rs. 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

Sukuk and Gold:
Gains are taxed as per your income slab.

Consult a tax professional to optimise your tax liabilities based on your investments.

Final Insights
Shariah-compliant investing offers ethical and growth-oriented options aligned with your faith. Focus on a diversified portfolio for retirement, education, and family needs. Regularly review your investments with a Certified Financial Planner for sustained growth and compliance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 20, 2024Hindi
Money
Hello sir, Am doing sip following in following mutual funds and time horizon is 15 - 17 years. Please analyse. 1. Motilal Oswal midcap fund 2400/- 2. Quant smallcap fund 2400/- 3. Motilal Oswal microcap fund 3600/- 4. Parag parikh flexicap fund 2000/-
Ans: Investing with a 15–17 year horizon is a wise decision, as it allows compounding to work effectively. Let’s assess your portfolio with insights to optimise it further.

Portfolio Overview
You are investing Rs 10,400 monthly across four funds.
The portfolio includes mid-cap, small-cap, micro-cap, and flexi-cap categories.
These investments reflect a growth-oriented strategy.
A well-diversified portfolio can potentially meet your long-term financial goals.
Key Strengths of Your Portfolio
1. Diversification Across Market Caps
Exposure to mid-cap, small-cap, and micro-cap ensures high growth potential.
The flexi-cap fund adds stability by diversifying across all market caps.
2. Long Investment Horizon
A 15–17 year horizon allows you to absorb market volatility.
It enables compounding to enhance your returns over time.
3. Growth-Focused Allocation
Small-cap and micro-cap funds can deliver substantial returns in the long run.
Mid-cap funds provide balanced growth and moderate risk.
Areas That May Need Attention
1. High Allocation to Smaller Market Caps
Nearly 80% of your portfolio is allocated to small, micro, and mid-cap funds.
This creates higher risk, as these funds can be volatile in the short to medium term.
2. Sectoral or Stock Concentration Risk
Some funds in your portfolio may have concentrated sectoral bets.
Over-concentration can increase risk during sector-specific downturns.
3. Flexi-Cap Allocation Is Low
Flexi-cap funds provide diversification and stability, especially during market corrections.
A low allocation to this category may reduce your portfolio’s balance.
4. Taxation Implications
Long-term capital gains above Rs 1.25 lakh are taxed at 12.5%.
A high-growth portfolio may result in significant taxable gains.
Recommendations for Portfolio Optimisation
1. Rebalance Market Cap Allocation
Increase exposure to large-cap or flexi-cap funds to stabilise your portfolio.
A balanced allocation reduces risk while retaining growth potential.
2. Limit Micro-Cap Allocation
Micro-cap funds carry significant risk and longer recovery periods.
Restrict micro-cap allocation to 10%-15% of your portfolio.
3. Increase Flexi-Cap Allocation
Flexi-cap funds provide adaptive strategies across market conditions.
Raise this allocation to 25%-30% of your portfolio for better risk management.
4. Review Sectoral Exposure
Check if any fund has high exposure to a single sector.
Diversify to avoid dependence on specific industries.
5. Continue Investing Regularly
SIPs are the best way to handle market volatility.
Continue disciplined investing, even during market corrections.
Tactical Steps for Long-Term Wealth Creation
1. Set a Clear Corpus Goal
Estimate the corpus needed for your post-retirement lifestyle.
Account for inflation and your expected life span.
2. Increase SIPs Over Time
Gradually increase your SIPs as your income grows.
This helps you build a larger corpus by leveraging the power of compounding.
3. Monitor Performance Periodically
Review your portfolio every six months to ensure alignment with your goals.
Retain funds that consistently outperform their benchmarks and peers.
4. Adopt a Debt Allocation Near Retirement
Begin shifting a portion of your portfolio to debt funds 5–7 years before retirement.
This safeguards your corpus against equity market volatility closer to your goal.
Addressing Direct Funds and Regular Plans
Benefits of Investing Through Regular Plans
Direct plans may lack professional guidance and personalised advice.
Regular plans offer curated fund selection based on your risk profile.
A Certified Financial Planner ensures better alignment with your financial goals.
Why Active Funds Outperform Index Funds
Active funds capture opportunities in undervalued sectors and stocks.
Index funds lack the flexibility to capitalise on market changes.
For long-term investors, active funds offer superior potential returns.
Tax Planning Insights
Equity gains above Rs 1.25 lakh annually are taxed at 12.5%.
Consider redeeming investments in phases to minimise tax liability.
Plan withdrawals strategically to manage tax efficiency during retirement.
Final Insights
Your portfolio is growth-focused and aligned with your long-term goals. However, reducing micro-cap exposure and increasing flexi-cap allocation will optimise it further. Regularly review and rebalance your portfolio to manage risk and maximise returns. Stay disciplined with SIPs and increase investments periodically for a larger retirement corpus.

A structured approach ensures you achieve financial independence post-retirement.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

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Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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sbi small cap direct growth 15 year return tell me sir ? and if i invest 15k month sip then how many year create 1 cr and more that ?
Ans: Investing in small-cap funds can offer high returns over the long term. However, they come with higher volatility and risks. Let’s address your question about achieving Rs 1 crore through a Rs 15,000 SIP and the performance of small-cap funds.

Historical Returns and Small-Cap Funds
Small-cap funds have historically delivered returns ranging from 12% to 15% annually over 10-15 years.

These funds perform well during bullish market cycles but may underperform during downturns.

Always consider the long-term horizon to average out market volatility and benefit from compounding.

Time to Achieve Rs 1 Crore with Rs 15,000 SIP
At an assumed return of 12%, it takes 19 years to reach Rs 1 crore.

At an assumed return of 15%, it takes 15 years to reach Rs 1 crore.

Staying disciplined and investing consistently is critical to achieving your financial goals.

Disadvantages of Direct Funds
Direct funds require market expertise, time, and effort for continuous tracking.

Many investors face challenges in monitoring performance and making timely decisions.

Investing through a Certified Financial Planner ensures better fund selection and portfolio optimisation.

Regular funds provide personalised guidance, helping maximise your returns efficiently.

Importance of Small-Cap Funds in Your Portfolio
Small-cap funds are ideal for long-term investors looking for aggressive growth.

These funds can deliver substantial wealth but carry higher risk compared to large- and mid-cap funds.

Balancing small-cap funds with other categories diversifies risk and improves stability.

Actively Managed Funds vs. Index Funds
Actively managed funds leverage fund managers' expertise to identify growth opportunities.

Small-cap segments often outperform benchmarks through active management due to inefficiencies in the market.

Index funds, in comparison, are passive and miss out on stock-specific opportunities.

Actively managed funds ensure dynamic adjustments based on market conditions, unlike index funds.

Monitoring Your Investment
Regular reviews help track your SIP’s progress toward Rs 1 crore.

Rebalancing your portfolio periodically maintains an ideal asset allocation.

Seek professional guidance for optimising returns while managing risks.

Taxation for Small-Cap Funds
Long-term capital gains (LTCG) over Rs 1.25 lakh are taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20% for equity mutual funds.

Consider these taxes while calculating the net growth of your portfolio.

Finally
A Rs 15,000 SIP in small-cap funds can help you achieve Rs 1 crore in 15 years at 15%.

Focus on long-term discipline and diversify your portfolio for consistent growth.

Prefer actively managed funds for small-cap investments to capitalise on professional expertise.

Stay committed to your financial plan while regularly reviewing and rebalancing your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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Dear Sir, I am investing 40000/- per month since 2 years my Goal is to create 2 Cr till i reach 60. I am 45 now. My Investment HDFC Flexi, Parag Flexi, Nippon small cap, SBI large & Mid cap, Axis Blue chip, HDFC mid-cap oppourtunites, kotak emerging, Nippon India multi-cap fund, HDFC pharma, HSBC value fund. Pls advise. Thank You
Ans: You are investing Rs. 40,000 per month across various mutual funds. This disciplined approach is commendable. At 45, your goal to accumulate Rs. 2 crore by 60 is achievable. Let’s evaluate your portfolio and optimise it to align with your goal.

Strengths of Your Investments
Diversification Across Market Caps: Your portfolio includes small-cap, large-cap, and multi-cap funds.
Sectoral Exposure: The inclusion of a pharma fund offers specific growth potential.
Blend of Strategies: Value and growth strategies are present, providing balance.
Consistency: A monthly SIP for two years reflects financial discipline.
Areas That Need Improvement
1. Overlapping Funds
Many funds in your portfolio have similar objectives.
This results in unnecessary duplication and reduces efficiency.
2. Sectoral Overexposure
The pharma fund increases sector-specific risks.
Sectoral funds should be a minor part of a balanced portfolio.
3. Lack of Focus on Goal Alignment
The portfolio lacks a clear connection to your Rs. 2 crore goal.
Optimising fund selection is necessary to stay on track.
4. Limited Allocation to Large-Cap Funds
Large-cap funds provide stability and consistent growth.
Your current allocation to large-caps is inadequate.
5. Tax-Efficiency Awareness
New tax rules for mutual funds need consideration.
Restructuring may help minimise tax liabilities in the future.
Recommendations for Portfolio Optimisation
1. Streamline Your Portfolio
Reduce overlapping funds to improve returns.
Retain 5-7 funds that cover all market caps and investment styles.
2. Increase Focus on Large-Cap Funds
Large-cap funds offer lower volatility and steady growth.
Increase allocation to ensure a balanced portfolio.
3. Minimise Sectoral Funds
Limit sectoral funds to 5-10% of your portfolio.
Diversify across sectors instead of focusing on one.
4. Add a Balanced or Hybrid Fund
Hybrid funds provide stability during market downturns.
Consider allocating a portion of your investment here.
5. Target Your Rs. 2 Crore Goal
Increase SIP contributions if possible.
Factor in inflation to ensure the corpus retains its value.
6. Review Your Portfolio Regularly
Monitor fund performance every 6-12 months.
Replace underperforming funds with guidance from a Certified Financial Planner.
7. Opt for Regular Funds Through a CFP
Regular funds offer professional advice and support.
This helps in managing your portfolio effectively.
Key Insights on Direct Funds and Actively Managed Funds
Disadvantages of Direct Funds:

Requires extensive market knowledge.
Lack of professional guidance increases risk.
Time-intensive for monitoring and decision-making.
Benefits of Regular Funds via CFP:

Get expert advice for fund selection and rebalancing.
Avoid emotional investment decisions.
Align investments with financial goals.
Actively Managed Funds vs Index Funds:

Actively managed funds can outperform benchmarks over the long term.
Fund managers adjust portfolios for changing market conditions.
Index funds lack flexibility and may deliver lower returns.
Additional Steps to Strengthen Your Finances
1. Emergency Fund
Ensure 6-12 months’ expenses are saved in liquid funds.
This provides a financial cushion during emergencies.
2. Adequate Insurance Coverage
Have term insurance with Rs. 1 crore coverage.
Maintain health insurance for yourself and your family with Rs. 20 lakh coverage.
3. Plan for Post-Retirement Income
Invest in balanced funds or SWP for steady income post-retirement.
Avoid products with low returns like annuities.
4. Tax Efficiency
Keep ELSS funds for tax-saving under Section 80C.
Review fund taxation under the new capital gains rules.
5. Focus on Goal-Based Investing
Define clear financial goals for retirement and other needs.
Allocate investments to each goal for better clarity and planning.
Final Insights
Your current investment strategy shows great discipline. However, reducing overlapping funds and sectoral overexposure will optimise returns. Adding large-cap and hybrid funds will balance growth and stability. Increase your SIP or invest surplus funds to meet your Rs. 2 crore target comfortably. Seek professional advice to align your portfolio with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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I am invested in Quant small cap MF for 4 months now and since then I sm experiencing negative returns. should I stay invested or switch? If stay invested, then advise approx time to invest patiently in this fund?
Ans: Small cap funds invest in emerging companies with high growth potential.
These funds are volatile, with sharp short-term ups and downs.
They require patience as they perform well over long periods.
Evaluating the Current Situation

A four-month period is too short to judge a small cap fund's performance.
Small cap funds need at least 5–7 years to show consistent results.
Market cycles often affect small cap funds more than other categories.
Negative returns over a short term are normal for this category.
Market Volatility and Fund Performance

Recent market fluctuations may impact small cap returns temporarily.
Small cap funds perform better during market recovery or growth phases.
Historical data shows small caps can outperform over longer periods.
Why Staying Invested May Be the Best Option
Long-Term Potential

Small cap funds reward investors with long-term patience.
Early-stage companies in the portfolio need time to grow and deliver returns.
Recovery in Market Cycles

Small caps tend to recover strongly after market downturns.
A long holding period ensures you benefit from this recovery.
Professional Management

Actively managed funds, especially through MFDs with CFPs, allow expert handling.
Fund managers rebalance portfolios based on market trends.
Switching May Not Be Ideal Right Now
Short-Term Returns Are Misleading

Short-term performance doesn’t reflect the fund’s future potential.
Switching based on 4-month returns could lead to missed opportunities.
Exit Loads and Taxation

Switching now could attract exit loads and short-term capital gains tax.
This reduces the overall value of your investments unnecessarily.
Approximate Investment Horizon
Recommended Holding Period

Small cap funds need at least 7–10 years for optimal returns.
This allows companies in the fund to mature and capitalise on growth opportunities.
Mid-Term Reviews

Review fund performance annually, not monthly or quarterly.
Ensure the fund aligns with your financial goals and risk tolerance.
Key Considerations Before Staying or Switching
Reassess Your Risk Tolerance

Small cap funds are not for low-risk investors.
Ensure you are comfortable with high volatility and short-term losses.
Verify the Fund’s Quality

Check the fund’s historical performance over at least 3–5 years.
Assess the consistency of returns and the fund manager’s expertise.
Ensure Portfolio Diversification

Avoid overexposure to small caps. Balance your portfolio with large and mid-cap funds.
This reduces risk while ensuring steady returns.
Stay Patient and Focused on Goals

Small cap funds demand patience for wealth creation.
Stick to your financial plan without reacting to short-term market changes.
Final Insights
Your investment in small cap mutual funds requires patience and a long-term perspective. Negative returns in the short term are expected but not indicative of future performance. Exiting now could lead to unnecessary costs and missed opportunities for growth.

Continue investing for at least 7–10 years to maximise your returns. Regularly review your portfolio with a Certified Financial Planner to ensure it aligns with your goals. Focus on building a well-diversified portfolio to balance risks and rewards effectively.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

Listen
Money
We know that compounding takes pretty long time to happen. If I take out my entire amount (invested + gained) from a poorly performing MF and invest it in a new better MF and carry on the SIP in the new MF, will the chain of compounding be broken? Or, it will continue as is?
Ans: Compounding is a powerful concept where your returns generate further returns over time. When you stay invested in a mutual fund, compounding accelerates with long-term holding. However, moving your money from one fund to another does not break compounding but resets the compounding chain in the new fund.

Will Compounding Continue if You Switch Funds?
Switching funds involves redeeming your investments in one fund and reinvesting in another. Here’s what happens:

Compounding Resets:
The new fund starts its compounding process afresh from the reinvested amount.

Impact of Redeeming Poorly Performing Funds:
A switch allows your capital to grow better in a fund with higher returns.

Compounding Not Broken:
The chain is not broken if the new fund performs well and you stay invested for the long term.

Evaluating Whether to Exit a Poor Performer
Before switching, carefully evaluate the underperformance of the current fund.

Temporary vs. Persistent Underperformance:
Check if the fund is underperforming for a prolonged period (3+ years).

Compare with Peers:
Assess the fund’s performance relative to its category peers and benchmarks.

Review Fund Management:
Investigate changes in fund management, strategy, or market conditions causing the underperformance.

Tax and Exit Load:
Keep in mind LTCG and STCG tax rules and exit load charges before redeeming.

Benefits of Switching to a Better Fund
Switching to a well-performing fund can boost long-term wealth creation.

Improved Returns:
A fund with consistent returns provides better compounding benefits.

Aligned Goals:
A better fund aligns with your financial goals and risk tolerance.

Optimised Portfolio:
Switching can improve overall portfolio efficiency and diversification.

Role of Actively Managed Funds in Compounding
Actively managed funds are better suited for wealth creation compared to passive funds like index funds.

Potential for Outperformance:
Skilled fund managers can outperform benchmarks, especially in volatile markets.

Flexibility:
Actively managed funds adapt to market changes for better returns.

Importance of Professional Guidance
Making the right switch requires expert advice.

Certified Financial Planners:
Seek guidance from a Certified Financial Planner to select suitable funds.

Investing Through MFDs:
Regular plans through MFDs ensure personalised service and monitoring of investments.

Avoiding Direct Funds:
Direct funds lack professional monitoring, which can affect long-term compounding.

Tax Implications of Switching
Switching funds involves redeeming investments, triggering tax liabilities.

Equity Mutual Funds:
LTCG above Rs. 1.25 lakh is taxed at 12.5%. STCG is taxed at 20%.

Debt Mutual Funds:
Gains are taxed as per your income slab, regardless of holding period.

Exit Loads:
Redeeming within the exit load period incurs additional charges.

SIP Continuation in the New Fund
Continuing your SIP in the new fund ensures disciplined investing.

No Disruption in Investments:
The regular contributions in SIPs help maintain wealth-building momentum.

Rupee Cost Averaging:
SIPs average out market fluctuations, ensuring better returns over time.

Long-Term Growth:
Staying consistent in SIPs is key to maximising compounding benefits.

Factors to Consider When Switching Funds
If you decide to switch, evaluate the following factors:

Fund Category:
Choose a fund category matching your financial goals.

Risk-Return Profile:
Ensure the new fund aligns with your risk tolerance.

Track Record:
Select a fund with a consistent performance history over at least 5 years.

Investment Horizon:
Stay invested in the new fund for 5-10 years to maximise compounding.

Final Insights
Switching from a poorly performing mutual fund to a better one does not break compounding. Instead, it resets the growth process in a more suitable fund. Evaluate underperformance carefully before switching and consider tax implications.

Work with a Certified Financial Planner to select the right fund and ensure long-term wealth creation. Stay disciplined in SIPs and maintain a diversified portfolio for consistent compounding benefits.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

...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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