How can Lavan Kumar, a 34-year-old with a family, achieve his goal of accumulating 1 crore in the next 10 years?

Hi, I'm Lavan Kumar, i'm 34 year old married, one daughter of 6yr old. my current take home salary is 80k. my current PF balance as on Jan'25 is 8.5L Holding 1Cr term insurance with a premium of 18K per annum medical premium of 40k per annum for my family ( including parents). PPF Balance is 1.18L, investing around 20K per year investing in NPS from Dec'22 onwards and currently holding 2L and investing 50K every year and also investing 4500 monthly through employer from my salary( above mentioned sal is excluding this amt) Investing 9k per month in 5 mutual funds 1.Kotak infrastructure and Economic reform fund - 2k 2.Quant infrastructure fund -2k 3.Bandhan sterling value fund - 1k 4.SBI long term equity fund - 2k 5.Quant Multi Asset fund - 2k Paying LIC of 27K per year for 10L sum assured. currently holding a personal loan with an EMI of 27k per month, same will be closed by Dec'25. Please guide me on how to achieve 1Cr in next 10 years and where to invest to achieve my target.

Ans: Hello;

You may be able to achieve 1 Cr corpus in the following manner;

1. Do a flat monthly SIP of 50 K for 10 years.

2. Begin with a monthly sip of 15 K and step it up every year by 30% minimum.

Other option is to do a flat monthly sip of 20 K for 17 years to achieve 1 Cr.

A modest return of 10% is considered.

Also your funds need a complete rejig for which you may get in touch with a MFD.

Best wishes;
X: @mars_invest

Ans: Appreciate your clarity and responsibility.
You have taken thoughtful steps already.
Providing for two daughters is a big responsibility.
Let us guide you with a clear investment direction.

? Income and Dependents

– You are 42 years old.
– You have two daughters below 10 years.
– You are the main earning member.
– Your wife provides only a passive financial support.
– This makes planning even more important.
– Securing the next 10–20 years is your key priority.

? Existing Commitments

– You have a home loan of Rs 45 lakh.
– EMI of Rs 55,000 per month is significant.
– This consumes a large portion of your income.
– You must balance EMI, expenses, and investments.
– Avoid aggressive investment options till EMI reduces.
– Focus on steady and consistent investment habits.

? Existing Investments

– PPF: Rs 1 lakh
– Sukanya Samriddhi: Rs 1.2 lakh
– Mutual Funds: Rs 50,000
– SIP: Rs 10,000/month started in July 2025

– These are decent starting steps.
– Sukanya and PPF support your daughters' education.
– Mutual funds give you long-term wealth growth.
– Starting SIP is the right direction.
– But SIP of Rs 10,000 alone is not enough.
– You need a more structured, diversified plan.

? Insurance Cover

– Term life cover for you and spouse: Rs 1 crore each
– Medical insurance for mother: Rs 3 lakh

– Good that term covers are in place.
– Check if 1 crore is sufficient based on income.
– Consider increasing your life cover to Rs 2 crore.
– No family floater health cover is mentioned.
– Get one for yourself, wife, and children.
– Medical expenses are unpredictable.
– A floater policy reduces future financial shocks.

? Home Loan Position

– Outstanding loan is Rs 45 lakh
– EMI is Rs 55,000 per month
– Your EMI takes a major chunk of income
– Do not try to prepay aggressively yet
– Keep emergency funds ready first
– Plan investment around your EMI obligation
– Ensure EMI does not delay children’s education goals

? Investment Goal: Rs 1 Crore in 10 Years

– This is a realistic but demanding goal
– You will need disciplined monthly investing
– Goal should be met without disturbing lifestyle
– Rely on equity mutual funds, not real estate
– You already started SIP of Rs 10,000/month
– This alone won’t be enough for Rs 1 crore
– You need to scale it up gradually
– Increase SIP by 10-15% each year if possible
– Do not stop SIPs during market downturns
– Let compounding help you

? Why to Avoid Direct Mutual Funds

– Direct funds seem cheaper but lack expert help
– Without CFP-backed MFD, your choices may go wrong
– You may exit funds during bad market cycles
– Regular plan via MFD gives hand-holding
– Helps you stay invested during tough times
– Long-term wealth creation needs guidance
– An MFD with CFP adds ongoing value
– They review, rebalance and guide goal-wise investing
– Performance difference often beats cost difference

? Why Actively Managed Funds Are Better

– Index funds are passive
– They copy the market, never beat it
– Active funds try to beat the index
– Managed by expert fund managers
– Give flexibility in dynamic markets
– India is an active market even now
– Active funds have more potential for wealth creation
– Avoid index funds for your critical goal

? Why You Should Not Choose Real Estate

– Real estate is not liquid
– High entry and exit costs
– No guarantee of price appreciation
– Rental yields are low
– Tax benefits are limited now
– It is not suitable for your 10-year goal
– Avoid second property buying as an investment

? Key Investment Recommendations

– Maintain SIP in equity mutual funds
– Gradually raise it from Rs 10,000 to Rs 30,000/month
– If income increases, boost SIPs faster
– Split SIP across large cap, mid cap and flexi-cap
– Stick to regular plans through a CFP-backed MFD
– Add hybrid funds if you fear volatility
– Don’t stop SIPs when markets fall
– Rebalance portfolio yearly with expert help

? Emergency Fund

– Keep 6 months of EMI and expenses in FD
– You must have Rs 3–4 lakh easily accessible
– Avoid using credit cards or loans in crisis
– It gives you breathing space during shocks

? Insurance Improvements Needed

– Upgrade your term cover to Rs 2 crore
– Add family floater health cover of Rs 10–15 lakh
– Include maternity and kids’ expenses cover if possible
– Upgrade mother’s health cover too
– Check if her Rs 3 lakh cover has room for top-up

? Sukanya Samriddhi Plan

– Continue investing regularly till they are 14
– Do not depend only on this for education
– Returns are fixed but not inflation-beating
– Balance it with equity mutual fund SIP
– Mix of guaranteed and growth instruments is better

? PPF Usage

– Good for long-term tax-free savings
– But returns are modest
– Continue PPF with Rs 1.5 lakh/year
– Do not rely only on this for retirement
– Use it to supplement your fixed income needs

? What Not to Do

– Don’t invest in ULIP or traditional insurance
– They give low return and long lock-in
– Don’t take personal loan for investing
– Don’t depend on wife’s passive income
– Don’t invest based on tips or trends
– Don’t stop SIPs based on market noise
– Don’t make decisions without expert guidance

? If You Hold LIC or ULIPs

– Not mentioned in your message
– But if you hold LIC or ULIP or investment-insurance mix
– Surrender them and reinvest in mutual funds
– You will get better returns with proper guidance

? Tax Planning Suggestions

– Use Section 80C for PPF, ELSS, and Sukanya
– Use Section 80D for health insurance premium
– Avoid relying on insurance to save tax
– Use debt funds for short-term goals with proper asset mix
– Be aware of new mutual fund taxation rules

? New Mutual Fund Tax Rules (2024–2025)

– Equity LTCG over Rs 1.25 lakh taxed at 12.5%
– STCG in equity taxed at 20%
– Debt fund gains taxed as per your income slab
– Plan redemptions with help of CFP
– Use tax harvesting where suitable

? Reinvestment Planning

– Reinvest bonus, maturity, or windfalls into SIP
– Use step-up SIP feature
– Invest yearly hike or increment directly
– Build a SIP habit beyond mandatory saving

? Education and Marriage Goal Planning

– For daughters' education, plan a target corpus
– Split it between equity and guaranteed instruments
– Use SIP for growth and Sukanya/PPF for safety
– For marriage, plan separately with 10–15 year horizon
– Stay consistent in investing every month
– Don’t depend on only one product

? Retirement Planning

– Start thinking beyond daughters’ goals
– Keep PPF as part of retirement pool
– Later add NPS and equity SIP for your retirement
– Don’t delay this once EMI ends
– A small monthly retirement SIP is better than delay

? Regular Review and Tracking

– Track your SIP and goals every 6 months
– Discuss progress with your CFP-backed MFD
– Adjust SIP amount, scheme, or allocation if needed
– Keep asset allocation suitable to age and risk
– Rebalance yearly with professional input

? Family Involvement

– Educate your wife about financial basics
– Keep her informed of investments and plans
– Keep nominations and joint accounts updated
– Make your financial journey a joint process
– This secures family in case of uncertainty

? Finally

– You are thinking in the right direction
– You have started early and with clarity
– Focus now should be on increasing SIP
– Protect yourself with better insurance
– Avoid real estate, ULIPs and index funds
– Stay consistent with your investment journey
– Keep reviewing with a Certified Financial Planner
– You will reach your Rs 1 crore goal
– You will also secure your daughters' future and your retirement

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment