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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 25, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jun 25, 2025Hindi

I am 24 years old with a mutual fund portfolio of 65,000 (lumpsum payment in two mutual funds, 50+15) and stocks of 80k. I am joining the workforce and will be able to invest around 15k monthly, wanted to know where should Invest, if I am looking at increasing my portfolio size to 3-4 crores in the next 10-15 years.

Ans: At 24, you are taking the right step early in your career. Starting your investments now gives you a strong edge. You can harness the full power of compounding. Your goal of Rs 3–4 crores in 10–15 years is ambitious but very much possible.

Let me guide you step-by-step with a clear and 360-degree approach.

Your Current Financial Position – A Quick Review
You have Rs 65,000 in mutual funds.

Rs 80,000 is invested in direct stocks.

You will start earning soon.

You can invest Rs 15,000 per month.

This is a very good start. Most people delay this by many years.

Let us now see how to move from this early stage to Rs 3–4 crores wealth.

Set Clear Investment Priorities First
Before choosing where to invest, please do this:

Keep an emergency fund equal to 4–6 months of expenses.

Keep money for near-term needs in safer instruments.

Don’t mix short-term needs with long-term investments.

Without emergency funds, you may exit investments in panic.

Avoid Index Funds – They May Slow You Down
You may hear many people promoting index funds. But please be cautious.

Here’s why index funds may not suit your goal:

Index funds simply copy the market. No effort to beat it.

They include weak companies also. Not filtered well.

Returns may get pulled down during flat markets.

Not suitable for goals requiring aggressive wealth building.

Active funds aim to beat the market with better stock selection.

A good fund manager can protect you better in market falls.

You are young. You can take calculated risks for higher rewards. Index funds are too passive for this goal.

Avoid Direct Funds – Go with Regular via a MFD with CFP
Many platforms push direct funds. But there are key problems:

Direct funds give no personalised advice.

No guidance when markets fall.

You may exit in panic and book losses.

Fund switching decisions can go wrong without CFP help.

Long-term discipline may get disturbed.

Regular funds, with a Certified Financial Planner, give support.

A good MFD-CFP reviews and rebalances your portfolio.

Regular funds cost slightly more. But they protect your journey. That is more important than saving small charges.

Create an Investment Plan – The Building Blocks
Here is what a proper investment structure should look like for you:

Monthly SIPs of Rs 15,000 (start now, increase later).

Diversify across large, mid, and small-cap funds.

Include an aggressive hybrid fund to balance.

Ensure 4–5 schemes maximum – avoid clutter.

Rebalance every 12 months with CFP guidance.

Avoid chasing high past returns. Choose quality schemes with good consistency.

Use Step-Up SIP Strategy
As your income grows, increase SIPs gradually.

Increase SIPs by 10–15% every year.

This keeps pace with inflation and income growth.

Your Rs 15,000 SIP can reach Rs 40,000 in 7–8 years.

Small increases today give big returns tomorrow.

Stocks – Keep Exposure Limited
You already hold Rs 80,000 in stocks. Keep these points in mind:

Limit stock portfolio to 10–15% of your overall investments.

Only invest in stocks if you can research regularly.

Prefer mutual funds for consistent long-term growth.

Don’t chase stock tips. Avoid speculative bets.

Stocks can give high returns but can also destroy wealth. Be cautious.

Review Portfolio Regularly
Don’t just invest and forget.

Review once a year with your CFP.

Rebalance if funds underperform for 2 years.

Replace only with better consistent performers.

Don’t change based on short-term news.

Disciplined investing is more important than chasing trends.

Insurance and Risk Protection – Do Not Ignore
Even though you are young, some risk coverage is essential:

Take a pure term life cover (10 times your annual income).

Get a health insurance cover of Rs 5–10 lakhs.

Don’t depend on employer’s policy alone.

Avoid ULIPs, endowments, or money-back plans.

They mix insurance with investments. Low returns.

Buy simple, low-cost protection. Invest savings in mutual funds.

Tax Planning – Start Early, Keep It Clean
You will soon come under income tax:

Invest in ELSS mutual fund for Section 80C benefits.

Avoid locking all money in PPF or insurance.

File returns every year, even with low income.

Maintain investment proofs and fund statements.

A tax-smart investor grows wealth faster.

Set Milestones for Your Rs 3–4 Crore Goal
To make your goal real, break it into smaller targets:

By 30: Aim for Rs 25–30 lakhs

By 35: Grow it to Rs 1.2–1.5 crores

By 40: You can reach Rs 3–4 crores

These are possible with Rs 15,000 SIPs and regular increases.

Understand Mutual Fund Tax Rules (New)
Know the new capital gains rules for mutual funds:

Equity fund gains above Rs 1.25 lakhs taxed at 12.5% (LTCG).

Equity short-term gains taxed at 20%.

Debt fund gains taxed as per your income slab.

Invest with a long-term view to save tax.

Redeem only when needed or after 10+ years.

Avoid frequent switches to avoid short-term taxes.

What You Should Avoid
To stay on track, don’t make these mistakes:

Don’t stop SIPs during market falls.

Don’t keep changing funds often.

Don’t invest based on tips or YouTube videos.

Don’t mix investment with insurance.

Don’t ignore reviews and annual rebalancing.

Discipline is the bridge between goals and results.

Good Financial Habits to Build from Now
Strong wealth is a result of strong habits. Build these:

Track expenses monthly. Use simple apps.

Save at least 30–40% of your income.

Avoid EMIs and loans for lifestyle needs.

Don’t chase fancy gadgets early in career.

Read 1–2 finance books a year.

Right habits today shape your financial independence tomorrow.

Keep Financial Support System in Place
Along your journey, ensure the following:

Partner with a qualified Certified Financial Planner.

Use their advice to avoid costly mistakes.

Talk to them before making big changes.

Share your financial goals clearly with them.

A good planner works like a coach. Helps you grow consistently.

Final Insights
You are starting early. That’s your biggest advantage.

Rs 15,000 monthly with small increases will take you far.

Invest through quality active mutual funds with CFP support.

Avoid index funds, direct funds, and insurance-linked investments.

Stay invested for 10–15 years. Don’t panic when markets fall.

Track progress yearly. Correct small mistakes early.

Your dream of Rs 3–4 crores is very achievable.

Start now. Stay consistent. And grow steadily.

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

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