Dear Sir, I am 36 years old and have 2.8 lacs salary per month. Currently I have home loan of 25 lacs for which I pay emi of 37,000. I also invest 1.5 lacs in following mutual funds every month and currently have 11 lacs portfolio. I have 1.44 lacs in NPS for which 13000 is paid additionally. I save the remaining money in household expenses which is about 60000 per month. I want to know how is my investing strategy and way to improve my investing to achieve 50 crores at the age of 60

Ans: You earn Rs.2.8 lakhs monthly. You also service a home loan EMI of Rs.37,000. Plus, you invest Rs.1.5 lakhs per month in mutual funds. You contribute Rs.13,000 to NPS monthly, and have saved Rs.11 lakhs so far. You manage household expenses within Rs.60,000. That's a smart, responsible way to handle income, saving, and repayment.

Your commitment and disciplined approach deserve appreciation. You are building a solid financial foundation—keep it up!

Review of Your Current Investment Strategy

Your savings pattern shows good diversity:

Mutual Funds (Equity Focus): Rs.1.5 lakhs monthly

NPS Contributions: Rs.13,000 monthly

Emergency Savings: Implicit, though not captured separately

This mix gives growth potential from equity, tax benefits via NPS, and a cushion from household expense management.

But there are areas to improve further to reach your ambitious goal of Rs.50 crores by age 60.

The Rs.50 Crore Goal—Is It Realistic?

You want Rs.50 crores in 24 years (age 36 to 60).

To reach Rs.50 crores from current Rs.11 lakhs, you'd need:

About Rs.2.5 lakhs investment every month

A return of about 13–14% annually

That's ambitious, but not impossible with disciplined savings, high equity exposure, and smart investment strategy.

However, it requires us to review your strategy in detail.

Step by Step: Bringing Clarity to Your Goal

Let’s break your goal down:

Define key goals and timelines

Assess income and expense clarity

Revisit home loan strategy

Review mutual fund allocation and taxes

Reassess NPS and alternate long-term vehicles

Ensure emergency fund adequacy

Consider health and term cover

Plan for periodic review

Clarifying Your Financial Goals

Align your Rs.50 crore plan with life goals:

Retirement at 60

Children’s education and marriage

Lifestyle expectations (travel, health, hobbies)

Legacy plans

This clarity will guide how to manage portfolio risk and growth.

Home Loan Strategy

Your home loan EMI is Rs.37,000. Continue to pay it diligently. It offers benefits:

May improve your credit score

Provides an inflation-adjusted deduction

Interest component reduces gradually

But don't over-prioritise prepayments unless surplus is consistent and goals are on track. Your current surplus is best used to grow wealth.

Mutual Fund Strategy—Are You on Track?

You currently invest Rs.1.5 lakhs per month. That’s excellent.

To check alignment with Rs.50 crore target, use a hypothetical return of 13%:

Rs.1.5 lakhs SIP monthly for 24 years can grow close to Rs.15–17 crores.

With disciplined increases and market performance, Rs.50 crores is still quite a stretch.

Hence, you’ll need to:

Increase investments gradually

Choose high?growth, actively managed equity funds

Add small and mid-caps opportunistically

Keep reviewing performance annually

Active vs Index Funds

You didn’t mention index funds. Let’s address it:

Index funds have drawbacks:

No flexibility to exclude weak stocks

No defensive allocation in downturns

No attempt to outperform market

Actively managed funds provide:

Continuous market research

Ability to shift away from volatile sectors

Aiming to outperform benchmarks consistently

To build Rs.50 crores, we prefer a high-quality actively managed portfolio.

Fund Allocation for High Growth and Risk

Your current Rs.1.5 lakhs SIP can be allocated as:

Large/Flexi-Cap Funds: 30%

Mid-Cap Funds: 30%

Small-Cap Funds: 20%

Opportunity/Thematic Funds: 20%

As you get closer to 60, rebalance toward safer categories.

NPS Contributions—Are They Enough?

You invest Rs.13,000 monthly in NPS. That's commendable for tax benefits and retirement corpus.

NPS offers a mix of equity, corporate bonds, and government securities.

To strengthen its benefit:

Take full advantage of Section 80CCD

Consider increasing contribution—if surplus exists

Keep track of exit tax and withdrawals

This helps build a larger retirement corpus but may not push you fully to Rs.50 crores.

Building Emergency Funds

You currently manage household expenses well, but it's unclear if you have a separate emergency fund.

Ensure at least 6 months of expenses (Rs.3.6 lakhs) is kept in a safe liquid fund.

This prevents disruption of your long-term investments during emergencies.

Insurance and Protection Planning

You haven’t mentioned term insurance. At 36, you likely need:

Adequate term life cover for your loan and family

Health insurance for both you and family

Consider rider health or income protection

Protecting against risk ensures your retirement goal is unimpeded by unforeseen events.

Tax Efficiency of Investments

You have:

NPS investments with tax benefit

Mutual fund returns which face equity capital gains tax

LTCG above Rs.1.25 lakh taxed at 12.5%

STCG taxed at 20%

To maximise returns:

Hold equity funds beyond 1 year

Track redemptions to manage gains within threshold

Use NPS withdrawals strategically

Use tax-advantaged withdrawal plans at retirement

A Certified Financial Planner can assist with smart tax planning.

Periodic Portfolio Review and Upscaling

To hit Rs.50 crores:

Increase SIP annually with income growth

Rebalance asset mix based on performance

Exit underperformers and add high-conviction picks

Consider direct equities/hybrid in later years

Review your portfolio every 6–12 months with professional help.

Avoiding Common Pitfalls

Steer clear of:

Impulsive investment decisions

Excessive concentration in single funds

Frequent switching without reason

Overreliance on regular income

Blind faith in market timing

Discipline and consistency matter more than chasing quick gains.

A Realistic Roadmap to Rs.50 Crores

Over 24 years, you can strengthen:

Monthly SIP: Rs.1.5 lakhs (year 1) → Rs.5–6 lakhs (by year 24 as income scales)

Healthy asset allocation tilt toward equity growth

Effective use of NPS for tax and retirement savings

Rebalancing and withdrawal strategy at age 60

With average annualised return of around 14%, these steps can get you near Rs.25–30 crores realistically. Reaching Rs.50 crores needs significant future income and discipline—but remains a strong ambition.

Life Beyond Investments—Your WellBeing

While building wealth, remember:

Maintain work-life balance

Spend time with family

Save for travel and wellness

Continually learn and upgrade skills

True wealth is not just money—it’s freedom, health, security, and joy.

Finally

You invest wisely now. That is your strength.

Going ahead, increase equity exposure smartly while managing risk.

Use actively managed funds for consistent growth.

Strengthen NPS and consider gradual SIP hikes.

Build emergency corpus to de-risk.

Secure your physical and financial health with insurance.

Review portfolio with Certified Financial Planner regularly.

Stay away from index, direct, and risky investment temptations.

Keep family, purpose, and well?being in focus.

With consistent effort and guidance, Rs.50 crores is ambitious but within sight. You have both conviction and habits to reach there.

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