I have 90 lakhs which I want to invest wisely so that the money grows substantially in next 15 years. Kindly advice.

Ans: With a substantial amount like 90 lakhs and a long investment horizon of 15 years, you have various options to consider for potentially substantial growth. Here are some investment avenues to explore:Equity Mutual Funds (MFs): Equity mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks. Choose a mix of large-cap, mid-cap, and multi-cap equity funds based on your risk tolerance and investment horizon. These funds offer the potential for substantial long-term growth while spreading risk across various sectors and companies.
Systematic Investment Plans (SIPs): SIPs allow you to invest a fixed amount regularly in mutual funds, typically on a monthly basis. By investing systematically over time, you benefit from rupee-cost averaging and the power of compounding, which can help accumulate wealth steadily over the long term.
Diversified Portfolio: Opt for a diversified portfolio of mutual funds across different categories such as large-cap, mid-cap, small-cap, and thematic funds. This approach helps spread risk and capture growth opportunities across various segments of the market.
Professional Management: Mutual funds are managed by experienced fund managers who conduct in-depth research and analysis to make investment decisions. Their expertise can help navigate market fluctuations and capitalize on emerging trends, potentially leading to superior returns over time.
Liquidity and Convenience: Mutual funds offer high liquidity, allowing you to redeem your investments partially or fully as per your financial needs. Additionally, they provide the convenience of easy online transactions and regular updates on fund performance.
Tax Efficiency: Equity mutual funds held for more than one year qualify for long-term capital gains tax at a lower rate, making them tax-efficient investment options compared to direct equity investments.
Professional Guidance: Consider seeking guidance from a Certified Financial Planner or investment advisor to select suitable mutual funds based on your financial goals, risk profile, and investment horizon. They can help tailor an investment strategy that aligns with your objectives and maximizes your chances of achieving long-term wealth accumulation.
By focusing on equity mutual funds through SIPs and maintaining a diversified portfolio, you can harness the potential of the stock market for long-term wealth creation while benefiting from professional management and tax efficiency.

Ans: Investing Rs.15 lakhs for 10 years is a wise move. You’re planning for long-term growth, and that shows financial maturity.

Understanding Your Investment Objective
You are investing for a 10-year time horizon.

Your goal could be wealth creation, retirement, child’s education or any long-term need.

This long-term window gives you good room for growth-based investing.

You are not chasing short-term profits. That is very good.

It shows patience and clarity. Both are key for long-term success.

Deciding Your Investment Style
Rs.15 lakhs is a significant amount.

Let’s divide it smartly into different categories.

We won’t go with one single product.

Instead, we will diversify for safety and growth.

We will use mutual funds, small savings schemes, and emergency allocation.

This approach reduces risk and balances return.

Why Mutual Funds Are a Core Part
Mutual funds offer professional management.

They spread your money across many companies.

That helps reduce single-company risk.

With mutual funds, your money gets expert handling.

Over ten years, this becomes very valuable.

You get compounding growth and liquidity also.

Active Funds vs Index Funds: Which is Better?
Index funds copy market indices.

They don’t try to beat the market.

That means average returns only.

In volatile markets, index funds give no protection.

They blindly follow market up and down.

Actively managed funds adjust the portfolio wisely.

The fund manager can reduce risk in falling markets.

They also select stronger companies for better results.

So, active funds offer better decision-making.

For long-term wealth, they are more dependable.

Why Regular Funds Are Better Than Direct Funds
Direct funds may look cheaper, but come with hidden risks.

No advisor is available for support in direct funds.

You will manage it fully on your own.

That can lead to wrong fund choices.

Most investors don’t track funds regularly.

You may miss changes in performance or rating.

Regular funds come through MFDs with CFP expertise.

You get regular monitoring and rebalancing.

That improves fund performance and suits your goals.

Hand-holding by a Certified Financial Planner avoids costly errors.

Long-term success needs guidance, not guesswork.

Taxation Rules You Must Know
For equity mutual funds, LTCG above Rs.1.25 lakh taxed at 12.5%.

STCG is taxed at 20%.

For debt mutual funds, gains are taxed as per your tax slab.

This means tax planning becomes very important.

Your Certified Financial Planner will structure funds to reduce tax burden.

Also, investing via Systematic Transfer Plan (STP) helps lower STCG tax impact.

Emergency Fund: Your Safety Net
Before investing the full Rs.15 lakhs, keep some for emergency.

At least Rs.1.5 to 2 lakhs should stay in liquid fund or savings.

This helps during job loss or urgent medical need.

It avoids breaking your 10-year investments midway.

Asset Allocation Strategy: Balanced and Wise
Let’s allocate Rs.15 lakhs in smart buckets.

Around 70% to equity mutual funds.

20% to debt mutual funds or small savings.

10% for emergency and ultra short-term needs.

This keeps your returns high and your risks low.

Type of Funds to Consider
For equity, you may go for large-cap and flexi-cap mutual funds.

Multi-cap funds and focused equity funds are also good.

These categories offer growth with managed risk.

For debt part, go for dynamic bond or short-duration funds.

They offer better returns than fixed deposits.

They also provide some stability during equity volatility.

SIP and STP: Smart Ways to Enter Market
Don't invest full Rs.15 lakhs in one go.

Use Systematic Transfer Plan (STP) from a liquid fund.

Shift monthly into equity funds over 6–12 months.

This reduces risk of market timing.

You will enter at different levels and average cost.

SIPs are also good if investing from monthly income.

Monitoring and Review: Important for 10-Year Goals
Investments are not one-time work.

Review every 6 months with your Certified Financial Planner.

Rebalance if fund underperforms or if your goals change.

Stay updated on fund rating, portfolio and expense ratio.

Insurance Check: Protect Before You Grow
Before investing, make sure you have term insurance.

Health insurance is also very important.

Don't mix insurance with investment.

If you hold ULIPs or endowment policies, review them now.

Most likely they give poor returns.

If they are not 100% protection based, consider surrendering them.

Reinvest that amount in mutual funds for better wealth creation.

Goal-Based Planning: Brings Clarity
Assign every portion of your Rs.15 lakh to a goal.

Maybe Rs.5 lakh for child education.

Rs.7 lakh for your retirement fund.

Rs.3 lakh for house renovation or car after 10 years.

This helps track progress clearly.

You feel more committed to staying invested.

Emotional Discipline Is Key
Don’t panic when markets fall.

Stay focused on your 10-year goal.

Avoid frequent switching between funds.

Ups and downs are part of market behaviour.

Long-term investors are always rewarded.

Role of a Certified Financial Planner
Helps create custom portfolio for your risk level.

Gives unbiased fund recommendations.

Tracks tax laws and market changes for you.

Keeps you on track with timely reviews.

Acts like a health doctor for your money life.

You avoid costly mistakes and missed opportunities.

Final Insights
Rs.15 lakhs invested wisely can create serious wealth in 10 years.

Your focus on long-term is very appreciable.

Use mutual funds as the main wealth-building tool.

Stay away from direct and index funds.

Let a CFP guide your journey with logic and planning.

Reinvesting surrender value of poor insurance plans also helps.

Ensure your family is protected with term and health insurance.

Review your progress often but don’t panic during market dips.

Stick to your plan, trust the process, and allow time to work for you.

Wealth creation is a marathon, not a sprint.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment