Hello sir ,i am 35 yrs old and I don't have any current running loans.. i want to invest 30k per month for 10-15yrs.. Few articles or videos says index funds are best but in meantime I'm getting info saying don't go with index funds they never beat benchmark from few other articles.. so please suggest one diversified portfolio..
Ans: You are 35 and debt-free. That is a very good start.
You want to invest Rs. 30,000 monthly for 10–15 years.
That long duration gives you good power of compounding.
You have also asked about index funds vs active funds.
Let’s address that too.
We will build a full 360-degree plan for you.
Your Time Horizon is Long-Term
You are planning for 10–15 years.
This is ideal for wealth creation.
It also reduces market risk over time.
You can stay invested through multiple market cycles.
This means you can take equity exposure confidently.
A disciplined SIP of Rs. 30,000 monthly is powerful.
It can build a large corpus in 15 years.
But the portfolio must be well-structured.
Why Index Funds are Not Recommended
You said you saw many articles about index funds.
Some say they are best.
Some say they don’t beat the benchmark.
Here is the reality about index funds:
Index funds just copy a market index.
They have no active strategy.
They cannot exit poor stocks.
They do not protect capital in falling markets.
They give average performance only.
If market falls 30%, index also falls 30%.
You cannot expect smart management here.
They only work when markets go one direction – up.
But over 15 years, there will be ups and downs.
In those times, index funds do nothing.
They don’t suit goals like child education, retirement, or financial independence.
Benefits of Actively Managed Mutual Funds
You should choose actively managed funds.
These funds have full-time expert fund managers.
They adjust the portfolio based on market trends.
They avoid weak sectors.
They add strong companies early.
Benefits include:
Better downside protection
Flexible stock selection
Better return consistency
Human intelligence behind the portfolio
For long-term goals, active funds are better.
Not just for returns, but for peace of mind.
Problems with Direct Mutual Funds
If you are using direct mutual fund plans, please stop and rethink.
Many investors believe they are saving cost.
But they lose more due to lack of guidance.
Problems with direct investing:
You get no fund selection help
No yearly portfolio review
No rebalancing suggestions
No emotional support in market crash
You may over-diversify or under-diversify
A wrong asset mix is worse than paying small commission.
Invest through regular plans with a Certified Financial Planner – MFD.
You get:
Personalised investment map
Goal-linked investing
Proper risk alignment
Exit and entry strategy
Long-term hand-holding
This is more useful than saving 0.5% in expense ratio.
Suggested Diversified SIP Portfolio – Rs. 30,000 Per Month
Split your SIP across 3 to 4 high-quality fund categories.
Here is a suggested structure:
Flexi Cap Fund – Rs. 10,000
Multicap Fund – Rs. 8,000
Mid Cap Fund – Rs. 6,000
Small Cap Fund – Rs. 3,000
Balanced Advantage or Dynamic Asset Fund – Rs. 3,000
Why this works:
Flexi cap provides flexibility across market caps
Multicap gives broader diversification
Mid cap and small cap provide higher long-term growth
Balanced advantage reduces volatility
Keep the number of funds to 4 or 5 maximum.
Too many funds will not give extra returns.
They will only cause confusion.
Always Tag SIPs to Life Goals
Don’t just invest for returns.
Invest for a purpose.
Define your goals like:
Retirement fund
Child’s education
Marriage corpus
Wealth freedom
Assign SIPs to these goals.
This gives motivation to stay invested.
Also, this helps in portfolio review every year.
Rebalance Your Portfolio Every Year
After starting SIPs, don’t forget them.
Review your funds every 12 months.
Look for:
Fund performance vs peers
Consistency of returns
Changes in your life goals
Market valuation risk
Make changes if needed.
Use your MFD with CFP certification for review.
Don’t change based on news or social media.
Do Not Add Real Estate or Gold Now
You are starting with Rs. 30,000 SIP.
Focus only on mutual funds now.
Avoid real estate.
It locks your money.
It gives poor rental yield.
It has low liquidity.
Avoid gold also.
It does not generate income.
It performs well only during crisis.
Stick to mutual funds for growth.
They are transparent, liquid and well-regulated.
Don’t Forget Emergency Fund and Insurance
Before you start investing, check protection side.
Keep Rs. 3 to 6 lakhs in FD or liquid fund
This is your emergency cushion
Also ensure:
You have Rs. 50 lakh or more term insurance
You have Rs. 10–25 lakh health insurance
Without protection, your investments are at risk.
One emergency can derail your plans.
Taxation Awareness for Long-Term Investing
You are investing in equity mutual funds.
Please note the new capital gains tax rules:
Long-Term Capital Gains (LTCG) above Rs. 1.25 lakh taxed at 12.5%
Short-Term Capital Gains (STCG) taxed at 20%
Don’t redeem funds often.
Let compounding continue.
Exit only for your actual goal or rebalancing.
Increase SIP as Income Grows
You will earn more in the next 15 years.
So increase your SIP by 10–15% every year.
Even small yearly hikes can boost your final corpus.
This is called SIP top-up strategy.
Very useful for long-term wealth building.
Keep These Habits Always
Be patient with SIP
Don’t stop during market fall
Avoid new NFOs or sector funds
Do not switch funds often
Don’t compare with friend’s portfolio
Stick with your own goals
Focus on your own journey.
You will reach your destination.
Final Insights
You are starting at the right age.
You have enough time to build wealth.
Avoid index funds.
Use actively managed mutual funds.
Avoid direct plans.
Invest through a CFP-qualified MFD.
Start with Rs. 30,000 SIP monthly.
Review once a year.
Increase SIP every year.
Tag every SIP to a goal.
Stay disciplined.
Stay committed.
And you will achieve financial freedom.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
