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Ans: Hello;

'Share investment with minimum risk' is a contradiction.

However their are ways to mitigate or lower the risks while investing in stocks:

1. Do not deal in stocks directly unless under the guidance of a registered investment advisor/research analyst with strict stop losses and hedging.

2. Invest through hybrid mutual funds to beginwith. For eg BAFs, MAAFs

3. As you gain more comfort and confidence you may invest in large cap oriented equity funds.

4. Strictly avoid midcap, small cap, thematic and sectoral funds since the risk is very high.

5. Also the investment horizon while investing in equity funds should be long term (7 year+).

6. Most importantly ascertain your risk tolerance before venturing into equity investments.

Happy Investing;

Ans: Hello;

It is yielding you decent result.

Also based on current income tax rules the maturity proceeds of this policy will be exempt from capital gain tax.

Hence my suggestion would be to hold it till maturity.

Best wishes;

Ans: Evaluating Current Property Market Conditions
Post-Covid Real Estate Price Surge

Property prices have risen significantly post-Covid, creating concerns around overpricing. This increase often reflects builders covering pandemic-related losses rather than stable market growth.

Current conditions may not present the best value, as prices could stabilise when demand and supply balance out.

Impact of Price Volatility
Entering an inflated market increases the risk of depreciation if prices correct in the near term.

For stability, consider waiting 1-2 years. This may allow time for prices to settle and provide a clearer picture.

Financial Security and Prior Loss in Property
Having experienced a significant loss of Rs 25 lakh in property before, it’s wise to avoid unnecessary risk.

Instead of real estate, focusing on diversified financial investments can provide better returns and liquidity.

Benefits of a Wait-and-Watch Strategy
Waiting for 1-2 years can allow the market to stabilise and offer better opportunities.

Renting provides flexibility without the financial lock-in, while potential savings can be allocated to investments with growth prospects.

Investment Alternatives to Consider
Diversified Mutual Funds

Actively managed mutual funds offer growth, transparency, and liquidity. They are managed by skilled professionals and have performed well for long-term wealth building.

Unlike direct mutual funds, investing through a Certified Financial Planner brings expert oversight, helping you optimise your portfolio without added effort.

Systematic Investment Plans (SIP)

SIPs allow you to grow capital gradually, adjusting your investment amount over time for flexibility.

Mutual funds, especially SIPs in equity, benefit from the power of compounding, creating long-term wealth even during volatile market conditions.

Children’s Education and Future Needs

Since your children are in school, setting up dedicated funds for their future education can offer peace of mind.

Diversified investment plans focused on education will allow gradual wealth accumulation tailored to their academic needs.

Taxation Considerations
Mutual Fund Capital Gains

Long-term capital gains (LTCG) above Rs 1.25 lakh on equity mutual funds are taxed at 12.5%.

Short-term gains on equity are taxed at 20%. For debt funds, LTCG and STCG align with your tax slab, making them transparent.

Final Insights
Current property rates may not offer long-term value; waiting for stability seems sensible.

Building wealth with diversified investments, SIPs, and planning for children’s education provides financial security without risking depreciation.

Use mutual funds managed by experts, ensuring your financial goals are on track with professional guidance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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