Financial literacy rarely features in a doctor’s training, yet few professionals carry as complex a financial life. Between running a practice, managing irregular cash flows, and planning for a family’s future, physicians often find themselves making investment and tax decisions with limited time to research them properly. It is this gap that Ashutosh Financial Services set out to address on 20th October 2024 in Rajkot, when it hosted “Financial Health for Doctors: Navigating Investments, Taxes and Will” for an audience of practising doctors. The session was led by Daxesh Kothari, who walked attendees through three areas that shape a professional’s financial wellbeing: where to invest, how to manage taxes sensibly, and how to plan for what happens to one’s assets after death.
The investment portion of the session began with a candid look at fixed deposits, a default choice for many conservative savers. Kothari pointed out that once tax is deducted from the interest earned, the real return on a typical bank deposit often falls below the rate of inflation, meaning the money technically loses purchasing power over time even as the account balance grows. This framing set up a broader discussion on how income can be structured more efficiently within a family, for instance by holding fixed income investments in the names of a spouse, an HUF (Hindu Undivided Family, a tax entity recognised under Indian law), children, or parents, and by extending interest-free loans from funds that are not otherwise earning interest. Arbitrage mutual funds were introduced as a middle path, offering the risk profile of a fixed income product while being taxed under the more favourable equity taxation rules.
From there, the conversation moved into equity investing through mutual funds, portfolio management services, and direct exposure to unlisted companies. On mutual funds, the emphasis was on building a portfolio that reflects an investor’s financial profile, comfort with risk, and stated goals, spread thoughtfully across categories such as large-cap, flexicap, midcap, and thematic funds, while also paying attention to how concentrated a fund house’s holdings are and how its performance compares against its benchmark. Systematic Withdrawal Plans were highlighted as a tax-efficient way to draw a regular income from an equity portfolio. For those with larger investable amounts, portfolio management services were discussed as an alternative that offers more flexibility than mutual funds, since the portfolio is managed individually rather than pooled with other investors, though it typically requires a minimum investment of fifty lakh rupees. The session also touched on unlisted stocks, framed around the idea of identifying promising companies early, before they list publicly, with access available either through direct investment or through Alternative Investment Funds that require a minimum commitment of one crore rupees. Rounding out the investment discussion, foreign equity was presented as a way to diversify geographically and gain exposure to global companies, while gold and silver ETFs and Sovereign Gold Bonds were discussed as more liquid alternatives to real estate, a category attendees were told is increasingly seen as harder to manage and pass on to the next generation.
On taxation, the session underlined the importance of maintaining proper books of accounts, not only for compliance but as a management tool that can help a practice run more efficiently and can even support valuation discussions if a merger or acquisition is ever considered. Kothari also explained how India’s tax administration has shifted almost entirely to faceless, electronic processes, with filings, assessments, and appeals now conducted without direct personal interaction with tax officials. Practical tax planning tips covered legitimate deductions available under Section 37 of the Income Tax Act for expenses incurred wholly for professional purposes, such as seminar fees, travel, and even salary paid to a spouse, alongside safeguards doctors should be aware of, including the steep tax and penalty applied to unexplained credits or expenditures, and restrictions on cash transactions above ten thousand rupees. For doctors with international ties, the session also addressed FEMA regulations relevant to non-resident Indians, including reporting obligations and remittance limits under the Liberalised Remittance Scheme.
The final part of the session dealt with succession planning, an area often overlooked until it becomes urgent. Attendees learned the distinction between testamentary succession, where a valid will governs the distribution of assets, and intestate succession, which follows personal law such as the Hindu Succession Act or the Indian Succession Act when no will exists. A useful clarification offered was that a nominee is not automatically the legal owner of an asset but merely a custodian, with actual ownership determined by succession law. The session closed with practical guidance on drafting a valid will, including the requirement of two witnesses, and the advantages of doing so, such as the ability to leave specific assets to chosen beneficiaries, including those who are not legal heirs, and to build tax planning or family trust structures directly into the will.
Sessions like this reflect a simple belief that runs through Ashutosh Financial Services’ broader outreach: that good financial decisions start with good financial understanding, and that professionals who spend their careers caring for others deserve the same clarity and support when it comes to caring for their own financial future.
