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Dr Ashish

Dr Ashish Sehgal  | Answer  |Ask -

Relationships Expert, Mind Coach - Answered on Sep 12, 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 - Aug 30, 2023Hindi
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Relationship

My wife (aged 63 years) is suffering from Obsessive and Compulsive Disorder (OCD) for the 15 years. About 10 years back, she had undergone treatment at the Vellore Christian Hospital and is under medication. She is now better because of medication but her behaviour is very annoying at times. When I come from out side, she thinks that my cloths and all other things have become dirty and washes them. She feels that unless she offers "Puja" for at least 2 hours per day, bad things will happen to our family. Yesterday I flew from Bangalore and as soon as I reached home, she washed all my cloths including my new BP measuring instrument which I brought from there. I have two sons and they are married and reasonably well placed. I don't know what to do. Should I get separated from her? I am 72 and in good health.

Ans: It's important to consult with a mental health professional who can provide specific advice tailored to your wife's condition and your family's dynamics. Here are some steps you can consider:

Communicate: Open and compassionate communication is key. Talk to your wife about your concerns, and let her know how her behavior affects you. Use "I" statements to express your feelings without blaming her. Encourage her to share her thoughts and feelings as well.

Consult a Mental Health Professional: Reach out to a mental health specialist who specializes in OCD. Given that your wife has been on medication for a while but is still exhibiting distressing behavior, it may be beneficial to revisit her treatment plan. There might be adjustments needed in her medication or therapy.

Educate Yourself: Learn more about OCD and its symptoms to better understand what your wife is going through. This can help you be more empathetic and supportive.

Support Groups: Consider joining a support group for caregivers of individuals with OCD. This can provide you with valuable insights, coping strategies, and a network of people who understand your situation.

Seek Couples Therapy: Couples therapy can be helpful in improving communication and understanding between you and your wife. It can also provide guidance on how to manage the impact of OCD on your relationship.

Patience and Empathy: Living with someone who has OCD can be challenging, but try to be patient and empathetic. Remember that OCD is a mental health condition, and your wife's behaviors are driven by distressing thoughts and anxiety.

Self-Care: Take care of your own mental and emotional well-being. It's essential to maintain your own health and happiness while supporting your wife.

Legal Considerations: Separation or divorce should be considered only after exhausting all available avenues for treatment and support. Consulting with a family lawyer may be necessary if you decide to explore this option.

Ultimately, the decision to separate from your wife is a deeply personal one and should be made after careful consideration and with the guidance of professionals. Keep in mind that with the right treatment and support, people with OCD can improve their symptoms and lead fulfilling lives.

You may like to see similar questions and answers below

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Oct 14, 2022

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Relationship
I am 53 and my wife is 45. I never felt happy with my marriage.She suffers from OCD but is very intelligent. She has never done any cooking in these 23 years of our marriage. I cook and do household chores in case domestic help does not turn up. She brings me to suicidal tendency blaming my mother, my brother etc...She has never allowed my mother to stay with me, and also makes me lose interest in her. But her father is a very good man. I love him and feel like having sex with him though I am also a male. How much ever I ask her to come back to normalcy she does not. I am confused. My only son is 23 years old. I do not want him to think that he is disturbed. She does not understand others' state of mind. Please help me.
Ans:

Dear S,

Your situation is a bit complicated as I don’t have enough information to build on.

  • How do you know that she suffers from OCD? Has an expert diagnosed this?
  • Is the trouble in your marriage because of your confused sexual orientation?
  • Have you felt attracted to your wife at some point as well?

To me, it seems like both of you need to visit an expert who will not just help you deal with your marriage but also guide you to work on your sexual orientation which could also have led to matters going sour between you and your wife.

Like I said, things don’t add up much to me and I have tried to point you in a direction that might help you move into a solution space.

For more clarity, I do suggest getting in touch with an expert who can guide you ably and help get your life back on track.

All the best!

..Read more

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 20, 2022

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Hi Anu, I want to be anonymous on this.I'm 34years old and married 4.5months ago. It was an arranged marriage, we are from different caste. I'm a partial handicap person; I have issues with my leg. I am having issues with my wife's behaviour and I am looking for some consultation. During the initial conversations before marriage, she agreed on everything -- cooking, keeping me at bay on all works. I even informed, I don't like people who get angry and instead I like to discuss the issue and get it sorted out.But after marriage everything changed. From Day 1, she got angry on very little things like not giving hug/not drinking milk, using the phone while eating, laughing with colleagues while working or even if I cooked without informing. Getting angry is fine but she locks herself in a room for 5-10 hours and won't even respond to me. That irritates me the most. If by chance the door is open and when I enter, she won't see me and just go away like I'm some sort of stranger. I explained a lot but conveying this is wrong and it hurts me a lot, but still she does the same. I cried like a baby when I held her for not allowing her to leave the room.This has become a habit. In 4.5 months this happened for 2-3 months. My parents came home recently. Even during that time when we went out she got angry on a few things. I am not sure what it was about. When I am with family, I should respond to their needs but can't stay with her completely right? Why she can't understand it?I have to plead with her 1-2 hours to talk to me on the issue and then she tells me 'I did this/that and due to this, she got angry like the one I gave example above.She doesn't wake up till 8:30 or 9am. She won't cook or help me with household activities. And even when my mom came to teach her cooking, she didn't go. But in general, she says I want to learn cooking and especially learn what my husband likes.How much I can do? I'm getting frustrated with this behaviour and even informed her 'You're making me afraid to talk to you thinking what might get you angry.' Still no use. Please help me.
Ans:

Dear SD,

I have heard your side of the story but haven’t heard your wife on the same issue.

It seems the way you have described that your wife’s behaviour is unreasonable and selfish.

But I do believe that it takes two to tango.

What ever made her turn around differently from what she agreed upon before marriage?

Was she forced into this marriage?

Maybe it’s time to ask her:

What can I do for you?

What about me or my behaviour annoys you?

These questions shift from blame game to a solution space where you also take on the onus along with her to make the marriage work.

Obviously, something isn’t going on right and instead of bringing more instances that will prove that she’s at fault, why not bring in a space where the two of you work on your marriage.

Most times, just a shift in this thinking saves marriages and relationships.

All the best!

..Read more

Anu

Anu Krishna  |1318 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Aug 21, 2023

Asked by Anonymous - Aug 19, 2023Hindi
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Relationship
I'm 68 and my wife is 62, I had heart bypass surgery 9 years ago and she underwent Angioplasty 2 years ago, I had a fling with a foreigner around 4 years ago and we went out twice for a few days and I got caught since she has the habit of peeping into my mobile and copied my conversation and pics and she keeps nagging me for that episode, though it was four years ago and since then we haven't met but her nagging and abuses in front of friends and relatives and family hasn't stopped, whenever I want to have sex, I literally have to beg and listen to her taunts and abuses and that puts me off, I have asked for forgiveness and said sorry more than a thousand times but in vain, she still keeps on taunting and abusing me whenever she's in bad mood and forwards me my pics and messages and makes an issue of it. How to solve this is a mystery.
Ans: Dear Anonymous,
Hurt is hurt and healing from that hurt is difficult as there has been a break in trust.
A mere 'sorry' will not suffice as your wife's taunts reflect her deep hurt. You seriously have to earn her trust all over again...
How?
- Doing things for her that you have not done before
- Offering to help even if she does not ask for it
AND then the game changer:
- Listening to her express her hurt (taunts) and say: I am sorry! I know that you feel hurt by what I did and I want to make it up to you. What do you feel I can do more for you begin to trust me again? (expressing it this way only tells her that you care enough to want to work towards rebuilding the relationship).

If it doesn't work the first time, then try again...This may feel very silly to do, but well, it works like magic! A lot of patience is necessary when you are attempting to rebuild a relationship and YES, don't leave any stone unturned.

All the best!

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

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

Money
Hello sir, I am 44 years old , working in private sector. Take home salary is 1.5 lakh. i have a 8 year old daughter. i am investing is Sukanya Samrdhi scheme for my daughter's future needs started at her 6th month.At present value is Rs.345000. Amount was 30K per year till last FY. From 24-25 FY i have increased this to 1 lakh per year. I have home loan of 30 lakh taken 5 years back. EMI is 35000/- 170 month is balance tenure. I am investing in following mutual fund SIPs, 1. quant large cap fund Rs.4500 direct 2. tata small cap fund Rs.4100 direct 3.icic prudential bluechip fund direct Rs.4400 direct 4.Motilal oswal Midcap regular-Rs 5000 5. Parag parikh flexi cap regular-Rs.2500. 6. Nippon india small cap regular-Rs.5000 7.ICICI Prudential equity and debt fund regular-Rs.2500. I have a post office RD of Rs.2000 per month for 5 years. I can increase my SIP amount upto 20-30% every year. I have term plan for 1.5cr and health insurance of 20 lakh. Please evaluate my investment and kindly advice .
Ans: You have taken thoughtful steps to secure your family’s future. With consistent investments and strategic adjustments, your financial goals can be met efficiently. Below is a detailed evaluation and recommendations for your portfolio.

Key Strengths in Your Financial Plan
Sukanya Samriddhi Scheme (SSS): Investing in this scheme for your daughter is a good choice. It offers guaranteed returns and tax-free maturity, perfect for long-term goals like education and marriage.

Mutual Fund SIPs: Your current SIPs cover a mix of large-cap, mid-cap, small-cap, flexi-cap, and hybrid funds. This diversification provides stability and potential for high returns.

Insurance Cover: Your Rs. 1.5 crore term plan is sufficient to cover liabilities like the home loan. The Rs. 20 lakh health insurance ensures financial support for medical emergencies.

Home Loan Management: The Rs. 35,000 EMI is well within your affordability, considering your take-home salary of Rs. 1.5 lakh.

Areas for Improvement
1. Direct Funds in Your Portfolio
Direct funds require expertise to track and manage effectively.

Investors often lack time or knowledge to review performance regularly.

Switching to regular funds via a Certified Financial Planner ensures better fund selection and guidance.

2. Overlapping and Inefficiency in Mutual Funds
You have multiple funds in overlapping categories like large-cap and small-cap.

This duplication can lead to inefficiency in returns without adding significant diversification.

3. RD Investment
Post office recurring deposits provide safety but low returns compared to inflation.

Consider redirecting this amount to a diversified equity or hybrid mutual fund SIP for better growth.

4. Loan Tenure
The remaining tenure of 170 months (14+ years) is long, resulting in high interest outgo.

If possible, prepay part of the loan to reduce tenure and save on interest costs.

Recommendations for Your Financial Plan
1. Optimise Mutual Fund Investments
Reduce the number of overlapping funds in your portfolio.

Focus on a well-diversified selection of 4-5 funds, including large-cap, mid-cap, small-cap, and flexi-cap categories.

Allocate more towards actively managed funds to benefit from fund managers' expertise.

2. Utilise Annual SIP Increases
Increasing your SIPs by 20%-30% annually will significantly accelerate wealth creation.

Focus on equity funds for long-term goals and hybrid funds for medium-term goals.

Aim for a target SIP amount of Rs. 50,000 within the next 5 years to meet your retirement and daughter's needs.

3. Home Loan Prepayment
Allocate any annual bonus or surplus funds towards prepaying the home loan.

Prepaying Rs. 5 lakh over the next 3 years can reduce tenure by 3-4 years, saving significant interest.

4. Enhance Sukanya Samriddhi Contribution
Increasing your annual contribution to Rs. 1 lakh is a commendable move.

This ensures a secure and tax-free corpus for your daughter's future needs.

5. Switch from RD to SIPs
Redirect your Rs. 2,000 RD amount to a hybrid or flexi-cap mutual fund SIP.

This provides better returns while maintaining a balance between risk and growth.

6. Review Insurance Coverage
Your current term plan of Rs. 1.5 crore is adequate, but review it every 3-5 years as liabilities and expenses change.

Ensure your health insurance includes features like no room rent cap, annual health check-ups, and maternity cover, if applicable.

Taxation Considerations
Sukanya Samriddhi Scheme: Contributions, interest, and maturity proceeds are tax-free under Section 80C.

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

Home Loan: The principal repayment is eligible for Rs. 1.5 lakh deduction under Section 80C, while interest repayment gets Rs. 2 lakh deduction under Section 24(b).

Finally
Consolidate your mutual fund portfolio and focus on actively managed funds.

Increase SIPs annually and redirect low-return investments like RD to equity funds.

Prepay your home loan strategically to reduce interest burden.

Regularly review your financial plan with a Certified Financial Planner to stay on track.

By taking these steps, you can achieve your long-term goals while ensuring financial security for your family.

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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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

...Read more

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

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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

...Read more

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

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Ramalingam

Ramalingam Kalirajan  |7092 Answers  |Ask -

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

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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

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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