Hi sir I am 28 years old and my monthly take home is 1.22k , have a ongoing car loan with balance amount of around 4.8L and invested around 2.10 in PPF , 2.15L in EPF and investing 40k per month in 6 SIPs and over the years I have accummulated around 15.5 lakh and my stock portfolio is 9.2 Lakh where I invest 7.5k per month . Can you tell me what are the other investments I can make to achieve 1 cr portfolio ?
Ans: You are just 28. That is a very good start. You are already saving and investing with focus. You also maintain discipline in SIPs and stocks. Let us assess and guide you in a 360-degree view.
Income and Existing Commitments
Your monthly income is Rs 1.22 lakh
Car loan outstanding is Rs 4.8 lakh
EMI not mentioned, assume around Rs 10,000 monthly
So, approx monthly savings capacity is Rs 50,000–60,000
You are already using most of it in SIPs and stocks
That shows your good commitment to wealth creation
Your Existing Investments
PPF: Rs 2.10 lakh (long-term safe debt)
EPF: Rs 2.15 lakh (stable retirement support)
Mutual Funds: Rs 15.5 lakh through 6 SIPs (Rs 40,000/month)
Stocks: Rs 9.2 lakh and Rs 7,500 monthly SIP
This is a well-diversified portfolio already
You are using equity in both mutual funds and stocks
And using debt tools like EPF and PPF
Investment Approach Review
Your current path is working well
But you need to check two things regularly:
Is asset allocation balanced?
Are SIPs aligned to your long-term goals?
We now plan with a Rs 1 crore target
Understanding Your Rs 1 Crore Goal
You didn’t mention target year for Rs 1 crore
We assume you want it in next 8–10 years
This is a moderate-aggressive goal, very achievable for you
You are currently saving approx Rs 47,500 monthly
Rs 40K in mutual funds + Rs 7.5K in stocks
With this pace, reaching Rs 1 crore is realistic before 40
Suggestions to Reach Rs 1 Crore Faster
Here is a detailed and practical approach.
1. Finish Car Loan First
Car loan has no tax benefit
Interest is high, usually 9–11%
Prepay aggressively in next 12–18 months
Use bonus, incentives, or stock profits if needed
Freeing EMI boosts future SIPs
2. Increase SIPs Gradually
You already invest Rs 40,000 monthly
Add step-up of Rs 5,000 every year
Helps fight inflation and boosts compounding
Even a 10% yearly hike will shorten your Rs 1 crore journey
3. Maintain Smart Asset Allocation
At your age, equity allocation can be around 75–80%
Debt should be 20–25% to manage volatility
Ideal mix:
Equity MFs: 60%
Direct Stocks: 15%
PPF + EPF: 20%
Liquid/Safe fund: 5%
Review this every 6 months with a Certified Financial Planner
Don’t Use Direct Mutual Funds
Investing in direct plans may seem cost-saving
But they don’t give you any guidance or service
Disadvantages:
You don’t get personalised asset review
No emotional support during market dips
No tax-saving planning at year-end
No proper rebalancing and goal monitoring
You miss exit strategy planning
Use regular mutual funds via MFD with CFP
You get handholding, rebalancing, updates, and holistic help
Paying small commission is worth for long-term safety
Avoid Index Funds and ETFs
These funds simply copy the index
They do not use active human thinking
They perform like the market – nothing extra
Disadvantages:
They fall badly when markets fall
No chance of extra return or alpha
No protection in crash
Not suitable for emotional investors
Active funds managed by professionals perform better
They do strategy, research, exit and entry management
At your age, actively managed mutual funds are more powerful
Improve Your Stock Portfolio Handling
You have Rs 9.2 L in stocks and adding Rs 7.5K monthly
That’s good but you must handle it with discipline
Do’s:
Invest only in fundamentally strong companies
Hold for minimum 5–7 years
Don’t react to daily noise
Avoid penny stocks and tips
Don’ts:
Don’t average down bad stocks
Don’t invest without studying balance sheet
Don’t make it 50% of your portfolio
Keep stocks at 15–20% max of your total portfolio
The rest should be in mutual funds with SIP/STP
Debt Component – Safe But Slow Growth
EPF and PPF are long-term safety nets
Continue with them as is
Don’t withdraw unless for emergency
You can use the PPF limit of Rs 1.5 L per year
Invest Rs 12,500 per month consistently in it
This will balance your equity risk in volatile markets
Build a Liquid Fund Emergency Buffer
You didn’t mention emergency funds
This is very important for financial safety
Do the following:
Keep Rs 1.5–2 lakh in liquid fund or savings
Use this only for medical or job loss need
Don’t invest this in equity
This helps avoid credit card or loan use during emergency
Step-Up Investment Strategy
After your car loan closes, increase SIPs
Don’t let money sit idle in savings
If salary increases, add 10–15% more SIP every year
This is called SIP step-up method
This alone can bring Rs 1 crore in 8–9 years
You can use STP to move idle funds from FD to mutual funds
Use Hybrid Funds for Stability
You can add some monthly amount in aggressive hybrid fund
This balances equity and debt automatically
It gives stability in down markets
You can even use it for STP to equity
This is a safer way to keep your money growing
Tax Awareness for Mutual Funds
Keep in mind mutual fund taxation rules
For equity funds:
If you sell before 1 year – STCG at 20%
After 1 year – LTCG above Rs 1.25 lakh taxed at 12.5%
For debt funds:
All gains taxed as per your income slab
So always invest with goal horizon
Avoid selling in panic or for short-term goals
Additional Suggestions
Use one Certified Financial Planner to track all
Don’t mix too many mutual funds
Keep 5–6 funds max – good enough
Link every SIP to a goal
Don’t stop SIPs during market fall
Finally
You are saving well and regularly
Finish car loan to improve cash flow
Add step-up SIP to speed up Rs 1 crore goal
Avoid direct and index funds
Use regular mutual funds with CFP support
Review allocation and rebalance twice a year
Don’t take emotional or impulse decisions
Stick to the long-term plan and keep learning
Your Rs 1 crore target is 100% achievable
Stay disciplined, review regularly, and stay consistent
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment