At the age of 44,I have created a corpus of around 1.5 Crore INR by holding ONGC, SBI, M&M, Phoenix Mills, ICICI, Varroc Engineering and L&T which I bought in 2020. At the moment I am sitting on a hefty profit but have no intention to sell. Would you recommend I keep them or would you suggest selling any of these ? I want to give myself the best chance to build a big corpus with no pressure on time. What would you suggest please ? I am also invested in Mutual funds SIP and LIC.

Ans: Too many small caps, however, if you have the risk appetite then no issues.

Yes, Rs 15 lakh can become Rs 45 lakh in 10 years, however there will be high volatility as majority of your investment is in small caps.

Ans: Hello Metesh. Overall your portfolio report sounds very promising. I must say that you have conducted thorough research on the market. The sbi focused equity scheme may need to be reconsidered in comparison to peer schemes. Furthermore, in addition to achieve a corpus of 10 crores in the coming years, I would suggest you increase your sip and include an annual add-on to your current sip amount. In view of the fact that 65k sip will not suffice to accomplish your goals.

Ans: You have built a very strong base already at 36.
A corpus of Rs. 1.5 crore with diversified sources is a great achievement. Your focus on shares, mutual funds, and PPF shows commitment to wealth creation. You also earn Rs. 12 lakhs annually, which supports future growth. Your family responsibility is clear with marriage and one child. Now, let us assess your plan from all angles.

» Equity stock concentration risk

– You hold 46,000 shares in one company.
– This creates heavy concentration risk.
– Targeting Rs. 370–380 exit price is fine. But market can move differently.
– Do not base entire financial future on single stock movement.
– Gradual exit in parts is safer than waiting for one fixed price.
– Redeploying into diversified funds after exit reduces risk.

Stocks can create big wealth. But depending too much on one stock can harm. Balanced diversification matters more than chasing price targets.

» Mutual fund portfolio role

– Your mutual funds give better diversification compared to single stock.
– They cover different market segments with professional management.
– Continue SIPs or lumpsum investments through mutual funds.
– Mutual funds offer steady compounding and reduce risk compared to individual stocks.
– Keep mix of large cap, flexi cap, and select mid caps.
– Reduce sector funds or narrow strategies.

Avoid index funds because they only follow the market average. In India, actively managed funds often deliver superior growth. They allow fund managers to exit weak companies and enter future leaders. Index funds cannot do this.

Also, avoid direct funds. Direct funds may save small costs but you lose expert review. With regular funds through MFD and Certified Financial Planner, you get monitoring and corrections. This adds more value than expense savings.

» PPF role and limitations

– You already hold PPF.
– It adds safety and guaranteed growth.
– But growth is slow compared to equity.
– Also, it locks money for long periods.
– Use PPF for fixed safe portion only. Do not add more.
– For retirement, equity mutual funds will play a larger role.

PPF is good for discipline. But wealth acceleration will come from equity mutual funds, not from PPF.

» Housing property goal

– You plan to create a housing property.
– First ask: is it for staying or for investment?
– If for staying, it is fine. Owning house gives security to family.
– If for investment, then avoid. Property investment is illiquid, taxed, and needs high cost. Mutual funds will create better wealth with flexibility.

When you buy house, avoid stretching loan too much. Keep EMI below 25% of your monthly income. Balance must continue in investments.

» Retirement planning with lump sum

– After your house plan, balance lumpsum can go for retirement.
– Retirement horizon is long. You have 20+ years ahead.
– For such horizon, equity mutual funds are best choice.
– Mix funds across large cap, flexi cap, and mid cap.
– Avoid overdependence on small cap and sector funds.
– Invest in phased manner if market is volatile.

Lumpsum should be invested gradually. This reduces timing risk. Then hold for long term with discipline.

» Insurance and protection

– You did not mention insurance.
– At your age, with wife and child, term insurance is must.
– Cover should be at least 15–20 times your annual income.
– This protects family if anything happens.
– Health insurance for family is also must. Employer cover alone is not enough.

Without insurance, your financial plan remains incomplete. Protection is foundation before growth.

» Child education planning

– You have one child. Education cost will rise sharply.
– Start a dedicated SIP for child education.
– This ensures money is available at right time.
– Do not mix this with retirement corpus. Keep separate.
– Use equity mutual funds with 10–12 year horizon.

Child education is a clear goal. If not planned early, it may force breaking retirement savings later.

» Emergency fund

– Keep 6 to 9 months of household expense in liquid fund or bank.
– This avoids breaking long-term investments during crisis.
– Emergency fund should not be in PPF or shares. It must stay liquid.

This simple step saves portfolio during emergencies.

» Tax planning and new rules

– Be aware of new mutual fund capital gain rules.
– Long-term equity gains above Rs. 1.25 lakh taxed at 12.5%.
– Short-term equity gains taxed at 20%.
– Debt funds gains taxed at your slab.

So, keep equity funds for long horizon. This reduces short-term taxation. Also, plan SWP in future keeping this tax rule in mind.

» Behaviour and discipline

– Do not chase stock price targets blindly.
– Do not stop SIPs during market fall.
– Review portfolio yearly with Certified Financial Planner.
– Rebalance when one asset grows too much compared to others.
– Increase SIP whenever income rises.

Discipline matters more than product selection. Regular habits build real wealth.

» Finally

At 36, you are in a strong position. Corpus of Rs. 1.5 crore, good income, family stability. With proper diversification, controlled debt, insurance cover, and systematic investments, you can achieve financial independence.

Use your shares wisely by exiting in parts. Build house only if for living. Allocate balance lumpsum into diversified equity mutual funds for retirement. Keep child education goal separate. Protect family with term and health insurance. Maintain emergency fund.

Then your journey towards financial freedom and retirement security will stay on track with confidence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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