Sir, i am 35 years old and my intake is Rs 90 thousand/ month. I have in vested Rs 26 lacs in FDR, 15 lacs in PPF, 5 lacs in EPF, having invested Rs 13 lacs in SIP and investing Rs 31 thousand/ month in it. I have term policy covering Rs 1cr., health policy covering Rs.6 lac, HDFC Life policy of Rs. 4.5 Lac. In how much time i will reach my target of Rs. 1.5 cr ?
Ans: You are doing very well for your age. At 35, you’ve already built a good foundation. Your disciplined investments, protection through term and health policies show clear planning. Let’s now assess your journey towards Rs. 1.5 crore goal from a 360-degree view.
? Review of Current Financial Assets
– You have Rs. 26 lakh in FDR.
– Rs. 15 lakh is invested in PPF.
– EPF is Rs. 5 lakh at present.
– SIP investments total Rs. 13 lakh.
– Monthly SIP of Rs. 31,000 is ongoing.
– Total existing corpus is around Rs. 59 lakh.
– Your income is Rs. 90,000 per month.
– You also have Rs. 1 crore term insurance cover.
– Health cover of Rs. 6 lakh is active.
– A traditional HDFC Life policy of Rs. 4.5 lakh also exists.
? First Step: Define the Goal Properly
– You mentioned a target of Rs. 1.5 crore.
– But we need to know the purpose clearly.
– Is it for retirement, child’s education or home buying?
– Time horizon changes with goal type.
– And that changes investment approach too.
– Without this, planning becomes a rough guess.
? Estimate the Timeline for Rs. 1.5 Crore
– Your current investments already total around Rs. 59 lakh.
– Regular SIP of Rs. 31,000/month adds good growth potential.
– Assuming continued SIP and reasonable return, goal is reachable.
– Depending on market, you can expect to reach Rs. 1.5 crore in 7–10 years.
– This assumes no withdrawals, and SIPs continue without stopping.
– Equity investments will grow faster than FDR or PPF.
? Check Asset Allocation Balance
– You have high exposure to fixed-income options.
– Rs. 26 lakh in FDR is not growth-focused.
– PPF and EPF are also low-yield, long-lock options.
– Around Rs. 46 lakh sits in safe but slow instruments.
– Only Rs. 13 lakh is in mutual fund SIPs.
– This reduces your long-term wealth creation speed.
– Over next 10–15 years, equity may give higher growth.
– But fixed deposits may not even beat inflation fully.
– Too much safety means missed opportunities.
? Mutual Funds Will Drive the Growth
– Your Rs. 31,000 SIP is the main driver for future corpus.
– Mutual funds are great for building wealth over time.
– With equity-based funds, Rs. 1.5 crore is easily achievable.
– Time and consistency are most important here.
– Don't stop SIPs even during market dips.
– Please invest only in actively managed mutual funds.
– Index funds just copy the market with no active monitoring.
– No strategy in index funds during market falls.
– Active funds try to reduce losses and improve returns.
– Smart fund managers add value in volatile times.
? Don’t Consider Direct Funds
– If you're using direct plans, please reconsider.
– Direct funds offer no professional help or periodic review.
– Many investors take wrong decisions without expert guidance.
– That can damage long-term results badly.
– Instead, choose regular plans via Certified Financial Planner.
– You will get portfolio review, risk tracking and rebalancing.
– These improve long-term returns and goal achievement.
? Importance of Term and Health Insurance
– Rs. 1 crore term cover is a good start.
– Recheck if it’s enough based on your liabilities.
– If you have dependents or loans, you may need more.
– Rs. 6 lakh health cover is fair for now.
– But hospital costs are rising quickly.
– Consider increasing health cover to Rs. 10 lakh.
– Or add a super top-up policy.
? Traditional Insurance Policy Should Be Reviewed
– HDFC Life policy with Rs. 4.5 lakh cover is low.
– Traditional plans mix insurance and investment.
– Returns are poor compared to mutual funds.
– Life cover is also very low in such policies.
– Please check surrender value.
– If it has completed 3–5 years, surrender it.
– Reinvest that amount in mutual funds.
– That gives better growth and clear goal tracking.
– Insurance and investment should never be mixed.
? Emergency Fund Must Also Be Planned
– You haven’t mentioned savings in bank or liquid funds.
– Every person must have emergency fund ready.
– Keep at least 6 months’ expenses in liquid form.
– Use liquid funds or bank savings.
– This avoids breaking long-term investments during urgent needs.
? Avoid FDR for Long-Term Goals
– Rs. 26 lakh in fixed deposits is too high.
– FDR gives low returns after tax.
– Inflation eats into the value slowly.
– You may get only 4–5% returns effectively.
– Instead, reduce FDR and increase mutual fund investments.
– That will improve your chances of reaching Rs. 1.5 crore faster.
– Rebalancing must be done with Certified Financial Planner help.
? Increase SIP When Income Rises
– As income grows, increase SIP amount regularly.
– Even Rs. 2,000–5,000 hike each year makes big difference.
– Top-up SIP or manual increase can be done.
– Don’t let inflation reduce the value of SIP.
– Example: From Rs. 31,000/month, increase to Rs. 35,000 next year.
– Then Rs. 40,000 next year and so on.
– This will bring Rs. 1.5 crore goal even faster.
? Stick to the Right Investment Philosophy
– Stay away from short-term thinking.
– Don’t stop SIP due to market volatility.
– Don’t jump into trending funds or F&O.
– Stick to your plan and review once a year.
– Review must be done with Certified Financial Planner.
– That will keep your risk in control and track goals better.
? Avoid Real Estate Investment
– Many people feel real estate is better.
– But it has high entry cost and poor liquidity.
– It can’t be sold quickly in emergency.
– Maintenance, legal issues and taxes reduce net return.
– Mutual funds and equities are more flexible and transparent.
? Tax Planning Also Matters
– EPF, PPF and SIP in ELSS help in tax saving.
– Review tax-efficient instruments every year.
– Avoid locking too much in long-term tax plans.
– SIPs can be aligned with Section 80C goals.
– Certified Financial Planner can help you optimise this.
? Your Current Progress is Impressive
– At 35, you are ahead of many people.
– You are earning, saving, and investing smartly.
– Protection is also in place through term and health insurance.
– You are not spending blindly, which is great.
– With minor changes, you can reach Rs. 1.5 crore faster.
– You need better asset balance, not more effort.
– Regular SIP and fewer fixed income holdings is key.
– Stay invested and review plan every year.
? Finally
– You are already halfway to your target.
– SIP of Rs. 31,000/month with existing corpus looks enough.
– Rs. 1.5 crore can be reached in 7–10 years.
– Shift from FDR to mutual funds for better results.
– Avoid index funds and direct plans to stay safe.
– Don't let emotional decisions disturb your investment strategy.
– Track progress yearly with Certified Financial Planner support.
– Increase SIPs when income rises for faster growth.
– Surrender traditional insurance and shift to growth funds.
– Keep emergency funds ready and health cover updated.
– You are on the right track. Stay focused and disciplined.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment