Home > Relationship > Question
Need Expert Advice?Our Gurus Can Help
Dr Ashish

Dr Ashish Sehgal  | Answer  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 15, 2024

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 - Jul 13, 2024Hindi
Listen
Relationship

Vikrant Asked on - Jul 03, 2024 Hi Dear Sir /Mam one of my close friend he is 32 years old now married 6 years ago in 2018. he is in govt job and wife is MA, they have a son 5 years old. After around six months of marriage ,the problems started in relation in family, my friend tells her to respect and she listens to her parents only and her parents tell her to come to parental house at every time when a bit of misunderstanding happens in his family,& she leaves this continues and she lived there for six months then my friends father went to her parents house and advise her that's it's not good way your house is in low's house now daughter. And then she understands and came back with his father then after sometime, she again started querreling and threatened his mom that she will sucide and closed the doors ,later nothing happens and next night while chatting with my friends she threatens him while he was on his duty , that she will eat all pills together and will sucide..my friends got feared , then nothing happens later his father took her to his hoke next day . Them again she lived ther for 6 months around then his father again went and have a talk in between some elders and made her understand..then she again said sorry and came back to in law's house... Then after some days my friend take her with him to his duty place to keep her with himself , so that things can better but after few weeks there also she started doing same things and not caring the child and not making food , and telling husband that ,now I willl tell take revenge how u left me for six months at my home like that she fights with him there. He make her understand that's nobody is here let's live peacefully but said I know your parents are daily filling your ears, why do u talk to them ? talk to me only and give me your ATM I will go for shopping.. now I will do what I want ,I can't make food ,take me to restaurant etc ..she speaks loudly in colony ,my friend request her to not do this she then do more and abuse him and his family.. like wise things gone worse she threatens that 8 can make your family ruin ,I will confiscate your brother in rape case , nothing u can't do my friend gets very scared .. one day my friend went for duty then she calls him and tell him that I am throwing this child (Son) from roof now and cut the call ,my friend started crying there ,after all of that my friend shown some courage and file police complaint Then any how she went to parental home from around 2 years back she is there and living there ,now my friend says he doesn't want to live with her because he suffers the bad time with her & suffered from Disrespectful behaviour etc but he wants his son from her but now she says she will live with him but make a seperate house and leave your parents .. Now what can be done in this situation now how my friend can get seperate from her and get his son back ?

Ans: already replied

You may like to see similar questions and answers below

Kanchan

Kanchan Rai  |405 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 15, 2024

Asked by Anonymous - Jul 13, 2024Hindi
Relationship
Vikrant Asked on - Jul 03, 2024 Hi Dear Sir /Mam one of my close friend he is 32 years old now married 6 years ago in 2018. he is in govt job and wife is MA, they have a son 5 years old. After around six months of marriage ,the problems started in relation in family, my friend tells her to respect and she listens to her parents only and her parents tell her to come to parental house at every time when a bit of misunderstanding happens in his family,& she leaves this continues and she lived there for six months then my friends father went to her parents house and advise her that's it's not good way your house is in low's house now daughter. And then she understands and came back with his father then after sometime, she again started querreling and threatened his mom that she will sucide and closed the doors ,later nothing happens and next night while chatting with my friends she threatens him while he was on his duty , that she will eat all pills together and will sucide..my friends got feared , then nothing happens later his father took her to his hoke next day . Them again she lived ther for 6 months around then his father again went and have a talk in between some elders and made her understand..then she again said sorry and came back to in law's house... Then after some days my friend take her with him to his duty place to keep her with himself , so that things can better but after few weeks there also she started doing same things and not caring the child and not making food , and telling husband that ,now I willl tell take revenge how u left me for six months at my home like that she fights with him there. He make her understand that's nobody is here let's live peacefully but said I know your parents are daily filling your ears, why do u talk to them ? talk to me only and give me your ATM I will go for shopping.. now I will do what I want ,I can't make food ,take me to restaurant etc ..she speaks loudly in colony ,my friend request her to not do this she then do more and abuse him and his family.. like wise things gone worse she threatens that 8 can make your family ruin ,I will confiscate your brother in rape case , nothing u can't do my friend gets very scared .. one day my friend went for duty then she calls him and tell him that I am throwing this child (Son) from roof now and cut the call ,my friend started crying there ,after all of that my friend shown some courage and file police complaint Then any how she went to parental home from around 2 years back she is there and living there ,now my friend says he doesn't want to live with her because he suffers the bad time with her & suffered from Disrespectful behaviour etc but he wants his son from her but now she says she will live with him but make a seperate house and leave your parents .. Now what can be done in this situation now how my friend can get seperate from her and get his son back ? Vikrant Asked on - Jul 03, 2024 Hi Dear Sir /Mam one of my close friend he is 32 years old now married 6 years ago in 2018. he is in govt job and wife is MA, they have a son 5 years old. After around six months of marriage ,the problems started in relation in family, my friend tells her to respect and she listens to her parents only and her parents tell her to come to parental house at every time when a bit of misunderstanding happens in his family,& she leaves this continues and she lived there for six months then my friends father went to her parents house and advise her that's it's not good way your house is in low's house now daughter. And then she understands and came back with his father then after sometime, she again started querreling and threatened his mom that she will sucide and closed the doors ,later nothing happens and next night while chatting with my friends she threatens him while he was on his duty , that she will eat all pills together and will sucide..my friends got feared , then nothing happens later his father took her to his hoke next day . Them again she lived ther for 6 months around then his father again went and have a talk in between some elders and made her understand..then she again said sorry and came back to in law's house... Then after some days my friend take her with him to his duty place to keep her with himself , so that things can better but after few weeks there also she started doing same things and not caring the child and not making food , and telling husband that ,now I willl tell take revenge how u left me for six months at my home like that she fights with him there. He make her understand that's nobody is here let's live peacefully but said I know your parents are daily filling your ears, why do u talk to them ? talk to me only and give me your ATM I will go for shopping.. now I will do what I want ,I can't make food ,take me to restaurant etc ..she speaks loudly in colony ,my friend request her to not do this she then do more and abuse him and his family.. like wise things gone worse she threatens that 8 can make your family ruin ,I will confiscate your brother in rape case , nothing u can't do my friend gets very scared .. one day my friend went for duty then she calls him and tell him that I am throwing this child (Son) from roof now and cut the call ,my friend started crying there ,after all of that my friend shown some courage and file police complaint Then any how she went to parental home from around 2 years back she is there and living there ,now my friend says he doesn't want to live with her because he suffers the bad time with her & suffered from Disrespectful behaviour etc but he wants his son from her but now she says she will live with him but make a seperate house and leave your parents .. Now what can be done in this situation now how my friend can get seperate from her and get his son back ?
Ans: Dear Vikrant,
It sounds like your friend is in a very challenging and emotionally taxing situation. The behavior described involves serious emotional manipulation and threats, which are deeply concerning and harmful. Here’s how he can approach the situation:

First, it’s important that your friend consults a legal professional who specializes in family law. Given the history of threats and manipulation, he needs to understand his rights and the legal steps he can take to protect himself and his son. A lawyer can provide guidance on how to proceed with a separation or divorce, and how to seek custody of his son.

Your friend should also document all instances of threats, abusive behavior, and any actions that put his son in danger. This documentation will be crucial for legal proceedings and for building a case for custody.

In parallel, he should consider seeking support from a mental health professional, both for himself and his son. This situation is undoubtedly stressful, and professional counseling can help him navigate his emotions and build resilience.

If possible, he should try to maintain a calm and measured approach when dealing with his wife, focusing on the well-being of his son. However, given her past behavior, it might be best for all communications to go through legal channels to ensure that everything is documented and managed appropriately.

Ultimately, his priority should be the safety and well-being of his son and himself. While it’s a difficult path, with the right legal and emotional support, he can work towards a more stable and healthy environment for his family.

..Read more

Dr Ashish

Dr Ashish Sehgal  | Answer  |Ask -

Relationships Expert, Mind Coach - Answered on Jul 15, 2024

Asked by Anonymous - Jul 13, 2024Hindi
Relationship
Asked on - Jul 03, 2024 Hi Dear Sir /Mam one of my close friend he is 32 years old now married 6 years ago in 2018. he is in govt job and wife is MA, they have a son 5 years old. After around six months of marriage ,the problems started in relation in family, my friend tells her to respect and she listens to her parents only and her parents tell her to come to parental house at every time when a bit of misunderstanding happens in his family,& she leaves this continues and she lived there for six months then my friends father went to her parents house and advise her that's it's not good way your house is in low's house now daughter. And then she understands and came back with his father then after sometime, she again started querreling and threatened his mom that she will sucide and closed the doors ,later nothing happens and next night while chatting with my friends she threatens him while he was on his duty , that she will eat all pills together and will sucide..my friends got feared , then nothing happens later his father took her to his hoke next day . Them again she lived ther for 6 months around then his father again went and have a talk in between some elders and made her understand..then she again said sorry and came back to in law's house... Then after some days my friend take her with him to his duty place to keep her with himself , so that things can better but after few weeks there also she started doing same things and not caring the child and not making food , and telling husband that ,now I willl tell take revenge how u left me for six months at my home like that she fights with him there. He make her understand that's nobody is here let's live peacefully but said I know your parents are daily filling your ears, why do u talk to them ? talk to me only and give me your ATM I will go for shopping.. now I will do what I want ,I can't make food ,take me to restaurant etc ..she speaks loudly in colony ,my friend request her to not do this she then do more and abuse him and his family.. like wise things gone worse she threatens that 8 can make your family ruin ,I will confiscate your brother in rape case , nothing u can't do my friend gets very scared .. one day my friend went for duty then she calls him and tell him that I am throwing this child (Son) from roof now and cut the call ,my friend started crying there ,after all of that my friend shown some courage and file police complaint Then any how she went to parental home from around 2 years back she is there and living there ,now my friend says he doesn't want to live with her because he suffers the bad time with her & suffered from Disrespectful behaviour etc but he wants his son from her but now she says she will live with him but make a seperate house and leave your parents .. Now what can be done in this situation now how my friend can get seperate from her and get his son back ?
Ans: Navigating such a challenging situation requires a thoughtful and measured approach. Here’s a step-by-step plan that might help your friend:

1. Legal Consultation
Seek Legal Advice: Your friend should consult a family law attorney who specializes in such cases. The lawyer can provide detailed information on the legal process for separation or divorce and help in understanding the custody laws.
Document Everything: Encourage your friend to keep a detailed record of all incidents, threats, and abusive behavior. This documentation can be crucial in court proceedings.
2. Mental Health and Safety
Assess Safety: Given the threats of suicide and harm to the child, it's important to prioritize safety. Your friend should consider reaching out to mental health professionals for guidance on how to handle these threats.
Support Systems: Suggest that your friend lean on trusted friends, family, or a support group for emotional support. This can help them manage stress and make more informed decisions.
3. Custody and Child Welfare
Child’s Best Interest: Courts generally prioritize the child's best interest in custody cases. Your friend should focus on demonstrating his ability to provide a stable and nurturing environment for his son.
Evidence of Care: Collect evidence that shows his active involvement in his son's life and his ability to care for him, such as school records, medical records, and testimonies from teachers or caregivers.
4. Mediation and Counseling
Consider Mediation: Sometimes, mediation can help both parties reach an agreement without going to court. A neutral mediator can facilitate discussions about custody and living arrangements.
Counseling: Professional counseling for both your friend and his wife might help in addressing underlying issues. Even if reconciliation is not possible, it can provide a more amicable path to separation.
5. Prepare for Separation
Financial Preparation: Your friend should ensure his finances are in order. Understanding his financial standing will help in negotiations and court proceedings.
Living Arrangements: If separation is imminent, he needs to plan where he will live and how he will maintain a stable environment for his son.
6. Legal Actions
File for Custody: If your friend decides to proceed with separation, he can file for custody of his son. The court will evaluate both parents' ability to provide a suitable environment.
Restraining Orders: If there are credible threats, a restraining order against his wife might be necessary to ensure safety.
7. Long-term Considerations
Parental Responsibilities: Emphasize the importance of both parents being involved in their child’s life, if it’s safe and feasible. Co-parenting arrangements can sometimes be worked out even in contentious situations.
Emotional Health: Ensure your friend takes care of his emotional well-being. This situation is highly stressful, and seeking professional help for his mental health is important.
In summary, your friend should act carefully and strategically, ensuring legal protection, emotional support, and prioritizing the well-being of his son. This approach will help him navigate the complexities of his situation more effectively.

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7090 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  |7090 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

...Read more

Ramalingam

Ramalingam Kalirajan  |7090 Answers  |Ask -

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

Listen
Money
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

...Read more

Ramalingam

Ramalingam Kalirajan  |7090 Answers  |Ask -

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

Listen
Money
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  |7090 Answers  |Ask -

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

Listen
Money
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  |7090 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

Ramalingam

Ramalingam Kalirajan  |7090 Answers  |Ask -

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

Listen
Money
Hi, i need to have advice on my current Mutual Fund Holding allocation, Axis Blue Chip Fund SIP -10K HSBC Midcap Fund - SIP -10K ICICI Pru Equity and Debt Fund SIP -15K Mirae Asset Large and Mid Cap Fund - 15K Kotak Flexi Cap Fund- 10K SBI Small Cap Fund - 15k I am looking for a long term horizon for my retirement monthly income post 60, currently i am 45 and holding the above fund since 2019. I would like to seek your expert advice on the above and any suggestion will be highly appreciated
Ans: It’s inspiring to see your commitment to retirement planning through mutual funds. Since your goal is a secure retirement corpus, let’s analyse your portfolio and provide a well-rounded perspective.

Portfolio Overview
You are investing Rs 75,000 per month across six funds.
Your portfolio has a mix of large-cap, mid-cap, flexi-cap, and small-cap funds.
A hybrid equity-debt fund adds a conservative element to your portfolio.
Your investment horizon is long-term, with 15 years until retirement.
Key Strengths of Your Portfolio
Diverse Fund Categories: Your portfolio spans multiple categories, ensuring balanced exposure to risk and reward.
Allocation to Small and Mid-Cap Funds: These funds could deliver high returns over the long term.
Hybrid Equity-Debt Fund: This adds stability during volatile markets.
Long-Term Horizon: This allows compounding to work effectively on your corpus.
Areas That May Need Attention
1. Fund Overlap
Holding multiple funds may lead to overlapping stock allocations.
Large-cap and flexi-cap funds often invest in similar companies.
This duplication can dilute diversification and increase portfolio risk.
2. Small and Mid-Cap Allocation
Small-cap funds have higher risk and longer recovery times.
A 30% allocation to these categories may be slightly aggressive.
3. Hybrid Equity-Debt Fund Role
The hybrid fund may underperform pure equity funds over 15 years.
Reassess its allocation considering your long-term growth needs.
4. Tax Efficiency
Be mindful of tax implications under the new rules for equity and debt funds.
LTCG above Rs 1.25 lakh is taxed at 12.5%, while STCG is taxed at 20%.
Regular monitoring can ensure your portfolio remains tax-efficient.
Recommendations for Optimising Your Portfolio
1. Streamline Your Fund Selection
Consolidate overlapping large-cap and flexi-cap funds.
Retain 1-2 high-performing funds in each category for focus and efficiency.
2. Balance Risk Across Categories
Limit small-cap exposure to 15%-20% of your portfolio.
Mid-cap funds offer a balanced risk-reward ratio; retain their current allocation.
3. Increase Allocation to Large-Cap Funds
Large-cap funds provide stability during market downturns.
Consider raising large-cap allocation to 30%-35% of the portfolio.
4. Reassess Hybrid Fund Allocation
Hybrid funds suit moderate-risk investors with shorter horizons.
Replace it with a pure equity fund or a flexi-cap fund for better growth.
5. Explore Index Fund Alternatives Carefully
Index funds have lower expense ratios but lack active fund management.
Active funds add value by capturing opportunities missed by indices.
6. Invest via Regular Plans
Direct funds don’t offer professional guidance and personalised advice.
Regular plans through a Certified Financial Planner ensure strategic alignment with goals.
Tactical Steps for Long-Term Wealth Creation
1. Set Up a Retirement Corpus Target
Calculate your retirement corpus based on desired monthly income post-retirement.
Factor in inflation and life expectancy while estimating.
2. Increase SIPs Gradually
Increase SIP amounts periodically to match salary hikes.
This will amplify the power of compounding over time.
3. Monitor Performance Periodically
Review your portfolio every six months to ensure it aligns with your goals.
Replace underperforming funds based on consistent results, not short-term fluctuations.
4. Consider a Debt Allocation Closer to Retirement
Move part of your portfolio to debt instruments 5-7 years before retirement.
This safeguards your corpus against market volatility near the goal.
Addressing Tax Efficiency
Continue tracking gains to ensure they stay within the Rs 1.25 lakh LTCG exemption annually.
Long-term equity investments are still tax-efficient compared to other instruments.
Debt fund withdrawals may attract tax based on your income slab. Plan these withdrawals carefully.
Final Insights
Your portfolio is well-structured and aligned with your retirement goals. Streamlining overlapping funds and rebalancing small-cap exposure can optimise it further. Focus on active fund management and regular monitoring for consistent returns.

Retirement planning requires periodic adjustments to accommodate market changes. Stay disciplined and committed to your goal for financial independence post-60.

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x