
Hi, Would like to know if I can accumulate 1cr with my Mutual Funds portfolio and in how many years.
Parag Parikh Flexi Cap(direct) - SIP- 3000/-
Bandhan Small Cap(direct) - SIP - 2000/-
SBI Small Cap(direct) - SIP - 3000/-
Edelweiss Mid Cap(direct) - SIP - 2000/-
Invesco Small Cap(regular) - SIP - 3000/-
WhiteOak Multi Cap(regular) - lumpsum - 2 lakh {Adding around 25k every 6 months depending on savings}
I am also putting around 4000/- to 5000/- every 30th or 31st of the month depending on my month end savings in Parag, Bandhan, SBI, Edelweiss funds.
Moreover, I had invested in Quant Mid cap(direct) fund with 60,000/- just in case if I need some money in future so will use this fund only w/o touching any of the above funds.
Started my investment from last 6-8 months only and I am 33 years old.
Apart from this I am also putting in PPF- 1.5lakhs, NPS- 50k, HDFC ULIP(5th and last year)- 1.35 lakhs yearly.
Please suggest me with any change required in above portfolio as I am thinking to add 1 gold ETF fund as well. Also, not expecting 'Consult a Financial Advisor' messages as I have some regular funds as well from my Fund broker. Please suggest something solid.
Ans: You’re 33. You’ve started SIPs 6–8 months ago. You invest in multiple mutual funds. You also invest in PPF, NPS and a ULIP. You’ve added lumpsum too. You wish to create Rs 1 crore. You also wish to know how many years it can take.
Let’s do a full 360-degree assessment.
? Current Investment Behaviour
– You have 5 SIPs in equity mutual funds.
– Amount is around Rs 15,000 monthly.
– You also add Rs 4,000–5,000 more at month-end.
– Every 6 months, you invest Rs 25,000 lump sum.
– In total, around Rs 2.5–2.7 lakh/year in mutual funds.
– You’ve also added Rs 2 lakh in one regular multicap fund.
– Rs 60,000 in a midcap fund as buffer for future need.
You’re consistent and focused. That’s a great start.
? Good Habits You’ve Already Built
– You are disciplined with SIPs.
– You try to save and invest whatever is left monthly.
– You use mix of small, mid, flexi and multi-cap funds.
– You plan to keep some money aside for emergencies.
– You don’t touch long-term funds.
– You’re thinking ahead already.
This is a solid habit at 33. Keep it going.
? Investment Tools Beyond Mutual Funds
– You invest Rs 1.5 lakh yearly in PPF.
– Rs 50,000 goes to NPS.
– You also pay Rs 1.35 lakh/year into a ULIP.
These are long-term assets. They help in retirement and tax-saving. But let’s analyse deeper.
? Review of ULIP Investment
– ULIPs combine insurance and investment.
– You are in 5th and final year.
– These have high charges in early years.
– Returns are less than mutual funds.
– ULIP is also not flexible like SIPs.
– It is not ideal for long-term wealth.
Now that 5 years are over, exit ULIP after lock-in. Shift that money into mutual funds. That will give better compounding.
? Small Cap Fund Allocation Review
– You have 3 small cap funds in your portfolio.
– Monthly investment is around Rs 8,000.
– This is over 50% of your SIP value.
This is very high for small cap exposure. Small caps are risky. They are volatile. Not for short-term. Not for over-allocation.
Reduce small cap to 20–25% of your total mutual fund SIP. Shift extra amount to large or flexi-cap categories. This will balance risk.
? Direct Plans vs Regular Plans
– You use both direct and regular plans.
– Many SIPs are in direct mode.
– Only 1–2 funds are through MFD.
Direct funds lack handholding. No guidance during market falls. No review support.
Regular funds through CFP or MFD offer ongoing advice. Fund switch, goal tracking and rebalancing is easier. Stay connected with your MFD for right direction.
For long-term goals like Rs 1 crore, regular plan with personalised help is better.
? Adding Gold ETF: A Good Idea?
– You plan to add gold ETF.
– Gold helps diversify your portfolio.
– But ETFs are index-tracking tools.
– They don’t suit every investor.
Gold ETF lacks active management. It needs demat and timing. Gold also does not give regular income. It shines only during global fear or inflation.
If you want gold for balance, consider gold mutual fund (regular plan). You can also invest in digital gold over time, but keep exposure below 10% of total portfolio.
Avoid adding gold just for trend-following.
? Importance of Goal-based Investment
– You want to create Rs 1 crore corpus.
– That’s a great milestone.
– But time-frame is not clearly mentioned.
– You must fix a target year or age.
If you want Rs 1 crore in 12–15 years, current pace may be enough. But for 8–10 years, increase monthly SIP slowly.
Split this into a clear goal. Add a goal tag to your SIPs – like retirement, child’s future, home buying etc. It gives direction.
Without clear goals, SIPs become scattered. You lose clarity.
? Emergency Fund: Still Missing
– You said Rs 60,000 is kept in one fund as backup.
– That’s a good start.
– But not a complete emergency corpus.
– You should build at least Rs 3–5 lakh for emergencies.
Keep this in a mix of savings account and liquid fund (regular plan). Don’t keep it in equity mutual funds.
This gives safety and quick access. It protects long-term SIPs from being broken.
Emergency planning is part of solid wealth planning.
? Review of Mutual Fund Count
– You are holding 6+ mutual funds.
– 3 are small cap funds.
– Others are multi or midcap.
Having too many funds causes overlap. Reduces clarity. Gives no extra return.
You can reduce funds by merging similar ones. Choose one strong performer from each category.
1 flexi/multi cap
1 midcap
1 small cap
1 balanced advantage or hybrid fund
This setup gives full market coverage. Fewer funds are easy to monitor. Discuss fund switch with your MFD or CFP.
? SIP Growth and Step-up Strategy
– You invest around Rs 18,000 monthly now.
– Add Rs 25,000 every 6 months.
– This shows you can invest more with time.
Each year, increase SIP by 10% or more. Even Rs 2,000 hike yearly can speed up your goal.
Step-up strategy multiplies wealth without burden. It is very effective from age 33 to 45.
This also adjusts for inflation automatically.
? Role of PPF and NPS in Retirement
– PPF gives fixed returns, around 7–8%.
– It is good for stability.
– NPS gives equity exposure for long-term growth.
Both should continue. They work well with mutual funds.
Use mutual funds for aggressive growth. Use PPF and NPS for stable base. Together, they create a balanced retirement plan.
? Tax Implications You Should Know
– New rule: Equity mutual fund LTCG above Rs 1.25 lakh is taxed at 12.5%.
– STCG is taxed at 20%.
– PPF is fully tax-free.
– NPS has tax benefit under Section 80CCD.
– ULIP returns are taxable if premium exceeds Rs 2.5 lakh yearly.
Plan your redemptions to stay within tax limits. Keep equity fund withdrawal slow and phased after 10 years.
Take help from your MFD/CFP for tax-efficient planning.
? How Long to Reach Rs 1 Crore?
– With current SIP and savings, Rs 1 crore is possible.
– If you keep Rs 18,000/month SIP plus Rs 50,000 yearly top-up,
– You may reach Rs 1 crore in 13–15 years.
Faster growth is possible if you hike SIP every year. Early hike gives long compounding.
If you target 10 years, then SIP must go up to Rs 22,000–25,000 monthly. This is also possible with step-up.
Stay consistent and increase savings slowly. Compounding will do the rest.
? Why You Must Review Every Year
– Fund performance keeps changing.
– Some funds may lag.
– Risk level may change.
– New life goals may come.
Do yearly review with your MFD or CFP. Align investments with your goals.
Avoid chasing short-term returns. Stick with your structure. Long-term wins happen slowly.
? Final Insights
– You have a good investment base.
– ULIP is better closed after 5 years.
– Shift to mutual funds for better return.
– Reduce small cap exposure for safety.
– Limit fund count to 4–5 only.
– Build emergency fund in savings + liquid fund.
– Avoid gold ETF. It adds complexity.
– Add goals and track separately.
– Keep increasing SIP yearly.
– Use regular plans with support from CFP/MFD.
– Stay invested long-term.
– Do annual review every year.
Rs 1 crore is possible. So is more. You just need to stay patient and steady.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment