As a salaried person, is it feasible to achieve a retirement corpus of Rs. 5 crore?

Ans: Your proactive approach to financial planning at the age of 26 is commendable. Building a strong investment portfolio early in life sets a solid foundation for achieving long-term goals. Let’s assess your current investments and proposed plans to ensure you are on the right track to reach your goal of accumulating Rs 10 crores by the age of 50.

Evaluating Your Current Investments
Your monthly income is slightly more than Rs 50,000, with Rs 5,600 deducted for EPF and an additional Rs 25,000 annually in PPF. You are also investing Rs 5,100 per month in three different mutual funds. Let’s break down the effectiveness of these investments.

Employee Provident Fund (EPF)
The EPF is a stable and secure form of savings. It offers tax benefits and a decent rate of return. Over the long term, it will contribute significantly to your retirement corpus.

Public Provident Fund (PPF)
The PPF is another excellent long-term investment with tax benefits. Your annual deposit of Rs 25,000 in the PPF will grow substantially over 25 years due to the power of compounding.

Mutual Funds
Your current investment of Rs 5,100 per month in each of three mutual funds (small cap, large cap, and flexi cap) is well diversified. Small cap funds offer high growth potential, while large cap funds provide stability. Flexi cap funds add flexibility to your portfolio by investing across market capitalizations.

Proposed Investment in HDFC Balanced Dynamic Fund
Adding a balanced dynamic fund to your portfolio is a strategic move. These funds balance equity and debt investments, reducing risk while providing growth. This aligns with your long-term goal and adds a layer of stability to your investments.

Assessing the Adequacy of Your Current Investments
Estimating Future Corpus
To achieve Rs 10 crores by the age of 50, consistent and strategic investments are crucial. Considering the power of compounding and historical market returns, your current investments appear promising. However, regular monitoring and adjustments are necessary to stay on track.

Diversification and Risk Management
Your portfolio is well-diversified across different asset classes and fund categories. This diversification reduces risk and enhances the potential for growth. However, ensure periodic review and rebalancing to maintain the desired asset allocation.

Recommendations for Your Investment Strategy
Continue with Regular SIPs
SIP investments are effective for long-term wealth creation. They mitigate market volatility and inculcate financial discipline. Continue your existing SIPs and proposed investment in the balanced dynamic fund.

Increase Investment Gradually
As your income grows, consider increasing your SIP amounts. Incremental increases in investments will significantly impact your corpus over the long term. Aim to increase your SIPs by at least 10% annually.

Emergency Fund and Insurance
Ensure you have an adequate emergency fund, ideally covering 6-12 months of expenses. Also, consider health and term insurance to protect against unforeseen events. This will safeguard your financial plan and provide peace of mind.

Regular Reviews and Adjustments
Financial planning is not a one-time activity. Regularly review your investments and make necessary adjustments based on market conditions and life changes. Consulting with a Certified Financial Planner can provide professional guidance.

Conclusion
Your current and proposed investments are on a good path towards achieving your goal of Rs 10 crores by age 50. Continue with disciplined investing, regular reviews, and necessary adjustments. Your proactive approach and long-term vision are commendable and will serve you well in your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have done a wonderful job by staying disciplined with mutual fund investments for over a decade. A long-term equity investment, especially post-retirement, shows patience, understanding, and commitment. Your detailed summary shows thoughtful planning and systematic execution. Let me now assess your portfolio and investment approach from a 360-degree perspective, keeping in mind your future gifting goal.

Overall Portfolio Structure
Your investments are diversified across:

Equity mutual funds

Direct shares

Fixed income avenues like Bank FD, Post Office schemes, PPF, NPS

Pension income

Health insurance

You have a clear goal — to pass on your equity investments to your children after 15 years. This is a beautiful long-term wealth gifting intention. Your time horizon also aligns well with equity investing. However, there are a few areas where your strategy can be refined.

Mutual Fund Portfolio – Positives
You started investing early and have stayed invested for over 14 years.

Your corpus of Rs. 43.31L on Rs. 21.16L investment shows consistent and high-quality compounding.

An XIRR of 14.63% is an excellent achievement over this long horizon.

SIP of Rs. 55K/month at this age is bold and forward-looking.

You have spread your SIP across different fund categories.

This portfolio reflects long-term wealth-building behaviour and commitment.

Review of Your Current Equity Mutual Fund Portfolio
Let’s look at the structure of your mutual fund investments:

SBI Contra Regular

Strong long-term performer.

Investment since 2010, paused now.

XIRR of 17.4% is remarkable.

You have rightly held it for long, giving the fund time to deliver.

Parag Parikh Flexi Cap (Direct)

HDFC Balanced Advantage (Direct)

HDFC Retirement Saving (Direct)

Navi Nifty 50 Index (Direct)

Kotak Nifty Next 50 Index (Direct)

Motilal Oswal Nifty 500 Momentum 50 (Direct)

Motilal Oswal Mid Cap (Direct)

These SIPs show diversification across flexi-cap, hybrid, thematic, index, and mid-cap segments.

However, let me highlight a few critical areas for improvement.

Disadvantages of Direct Funds
You are investing in direct funds. But this may not be ideal, especially for retired investors.

Direct funds need regular performance tracking.

You miss personalised guidance from a Certified Financial Planner (CFP).

If the fund underperforms, you may not exit at the right time.

Asset allocation or rebalancing will not happen without expert help.

Retirement stage needs proactive reviews, not reactive responses.

Regular plans through an MFD-CFP come with professional oversight, tailored advice, and peace of mind. Over a 15-year period, right allocation matters more than a slightly lower expense ratio.

Index Funds in Your Portfolio – A Critical View
You have allocated part of your SIP to:

Navi Nifty 50 Index

Kotak Nifty Next 50 Index

Motilal Oswal Nifty 500 Momentum

While these funds seem low-cost, they lack active human intelligence.

Why Index Funds May Not Suit You:

Index funds blindly copy the index.

No flexibility to manage downside risk.

They cannot avoid overvalued stocks.

Momentum themes work only in certain phases.

Recovery in falling markets may take longer.

They are not suitable for legacy or wealth transfer goals.

You need funds that can manage volatility and aim for consistent returns. Actively managed funds with a good track record serve this better.

Portfolio Restructuring Recommendations
Based on your current scenario and gifting goal, here are my suggestions:

Switch From Index Funds
Gradually exit all index fund SIPs.

Redeploy this into actively managed flexi-cap and balanced advantage funds through a regular plan.

Select AMC schemes that have a consistent 10-year+ track record.

Pause Retirement-Specific Funds
HDFC Retirement Saving is tax-locked.

Once lock-in ends, consider shifting to a more suitable long-term fund.

Reduce the Number of Funds
Too many small SIPs lead to portfolio clutter.

Concentrate into 3 to 4 well-managed funds.

Ensure each fund has a distinct mandate — not overlapping in strategy.

SBI Contra Withdrawal Plan
You are planning to withdraw 10% of your SBI Contra corpus to realise long-term capital gains.

This is a wise move, considering tax implications.

MF Tax Rule You Should Note:
LTCG above Rs. 1.25L is taxed at 12.5% now.

You can withdraw up to Rs. 1.25L of gains every year, tax-free.

Systematically redeem in phases to avoid bulk taxation.

Redeploy these proceeds into flexi-cap or balanced advantage regular plans. This will keep the compounding cycle intact.

Direct Shares Holding
You have Rs. 3.3L in shares. Please consider:

Are these high-quality companies with stable track records?

Do you monitor and rebalance them?

If not, better to switch to diversified mutual funds.

A CFP can help review the stock portfolio.

Fixed Income Portfolio Assessment
You hold:

Rs. 40L in Bank FDs

Rs. 30L in Post Office Senior Citizen Savings Scheme

Rs. 4.5L in PO MIS

Rs. 15L in PPF

Rs. 10L in NPS

This is a conservative, capital-protected allocation, which is perfect at your age.

You are earning:

Rs. 28,000 monthly pension

Likely interest income of Rs. 4 to 5L annually

There is enough buffer to manage regular expenses, with no pressure on equity withdrawals.

Please ensure the following:

Stagger maturity of FDs to avoid reinvestment risk.

Reinvest matured PO schemes into safer debt funds or hybrid funds with moderate risk.

Do not add more money to NPS now. It will become illiquid and taxable on withdrawal.

Health Insurance Review
You have a health cover of Rs. 8L. Please ensure:

It includes critical illness cover.

It has cashless facility in your nearest hospital.

Policy continues till age 80+.

Premiums are paid on time.

If needed, explore super top-up policies to enhance coverage at a low cost.

Estate Planning and Gifting to Children
You plan to gift the entire mutual fund and stock corpus to your children after 15 years.

This is thoughtful and visionary. To do it smoothly, please:

Write a Will now, clearly assigning MF and stock assets.

Nominate your son and daughter correctly in each folio.

Keep them informed about your investments.

Review the Will every 3-4 years.

Maintain a simple tracker sheet with folio details, nominee names, and login info.

Also consider creating a trust, if you want to manage transfer gradually. A CFP can help you plan this smoothly.

Risk and Volatility Review
Even though you have 15+ years, equity markets remain volatile in short periods.

Please review your risk:

Avoid high exposure to mid-cap or momentum-based funds.

Stick to large-cap biased flexi-cap and balanced advantage funds.

Ensure debt-equity balance is maintained (ideally 30-35% in equity for now).

Review asset allocation annually with a CFP.

This approach will protect the wealth you are building for your children.

Action Plan Summary
Here is what you can do step-by-step:

Exit index funds gradually.

Stop direct fund SIPs and move to regular funds via CFP-guided MFDs.

Reduce mutual fund count and consolidate.

Withdraw small gains from SBI Contra yearly.

Pause fresh NPS investment.

Monitor health insurance coverage closely.

Nominate children and write a proper Will.

Maintain asset allocation of 65-70% debt, 30-35% equity.

Review portfolio every year.

Finally
Your portfolio reflects clarity and long-term vision.

But direct funds and index funds may hinder that vision.

Let a Certified Financial Planner (CFP) work with you, just like a family doctor. They’ll help protect and grow your wealth till the time you gift it.

Investing with expert review ensures peace of mind, emotional security, and legacy fulfilment.

You have built a solid base — now protect it with structure, consolidation, and clarity.

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

Ans: You have displayed excellent financial discipline. At age 42, you already have structured investments, clear goals, and consistent savings. Your focused SIP approach and clarity of purpose reflect deep commitment toward long-term wealth creation and family security. This foundation can easily grow into the life goals you have mentioned—Rs 20 crore for retirement and Rs 2 crore for your daughter’s education. With a few refinements, your portfolio can achieve these goals efficiently and with better control over risks.

» Understanding your current financial position

You are an NRI earning and living in the UAE, which gives you a tax advantage on your income. You already have Rs 36.8 lakh in investments and contribute Rs 85,000 per month through SIPs. Besides this, you have ULIPs worth Rs 25,000 per month and a recurring deposit of Rs 15,000 per month. That totals Rs 1,25,000 per month in structured savings. You also have an employer gratuity of Rs 35 lakh.

Your total investment experience of four years shows maturity in handling risk. You have used mutual funds well to accumulate wealth. The growth from Rs 27 lakh invested to Rs 36.8 lakh current value is a healthy outcome. It indicates proper fund selection and market discipline.

However, there are areas where your plan can become more efficient. You can simplify overlapping funds, review the ULIPs, and strengthen the asset allocation balance.

» Goal clarity and time horizon

You have two main goals:

Retirement corpus of Rs 20 crore in the next 20 years.

Education fund of Rs 2 crore for your daughter in the same period.

Both goals are long-term and growth-oriented. This means equity will remain your main wealth builder. The timeline gives you enough compounding years to benefit from equity markets. However, to meet both goals smoothly, your portfolio structure should avoid duplication and maintain clarity between goals.

» Review of existing mutual fund structure

Your current mutual fund portfolio has 14 SIPs across multiple categories—mid cap, small cap, multi cap, contra, flexi cap, multi asset, and thematic. While this shows diversification, it also brings overlap and dilution. You currently invest in too many funds with similar mandates. This can make your portfolio harder to monitor.

Having many funds doesn’t always mean higher diversification. It can reduce focus and cause repetition of the same stocks across schemes. Mid cap and multicap funds already offer diversification. You hold multiple funds in both categories. This duplication can lead to inefficiency.

Your portfolio has strong exposure to active equity funds, which is good. Actively managed funds are better than index funds because they use research-based stock selection. Fund managers actively manage risk and take advantage of sector opportunities. Index funds simply replicate the market and ignore valuation. They also cannot handle market corrections smartly. For long-term wealth creation, active funds remain superior.

However, you should trim the number of schemes and focus on fewer, high-conviction funds that align with each goal. Around six to eight funds are enough for your corpus size and SIP amount.

» Review of gold and multi-asset exposure

You invest in silver and gold ETFs and multi-asset funds. While diversification across asset classes is good, overexposure to precious metals can limit growth. Gold and silver are protection assets. They preserve value but do not grow fast. You have three different funds related to gold and multi-asset exposure. These can be merged or reduced to one or two.

Keeping 10% to 15% in such assets is enough. The rest should continue in equity to build the corpus. Multi-asset funds already include gold exposure, so adding separate gold ETFs duplicates that exposure.

» ULIP review and recommendation

You hold two ULIP plans for your daughter’s education—Rs 10,000 and Rs 15,000 per month. ULIPs combine insurance with investment, but they usually carry higher costs. Fund options are limited, and returns often trail good mutual funds. ULIPs also restrict flexibility in switching or withdrawing.

Since these ULIPs are still early, you may consider surrendering them and redirecting future premiums to mutual funds. You can use the existing balance once the lock-in period ends. By shifting that Rs 25,000 monthly contribution to well-chosen equity mutual funds, you will gain higher compounding potential and full liquidity. For long-term education goals, mutual funds are more efficient than ULIPs.

» Asset allocation and diversification

A proper asset allocation ensures smooth growth and safety. Based on your risk profile and goals, a suggested mix is:

70% in equity mutual funds (large, mid, and flexi-cap).

20% in hybrid and multi-asset funds.

10% in gold or fixed-income instruments for stability.

This blend gives growth from equity and protection from hybrid or debt allocation. Within equity, keep a balance between large-cap, mid-cap, and flexi-cap funds. Avoid having more than two funds in each category.

» SIP allocation and simplification plan

Currently, you are investing Rs 85,000 across too many schemes. Streamlining will make tracking easier and returns more efficient. You can consolidate the funds to around seven or eight strong performers spread across equity, hybrid, and gold categories. This approach will reduce overlap and simplify rebalancing later.

Do not invest directly without review. Direct mutual funds appear to save cost, but the absence of professional monitoring often leads to mistakes. Investors in direct plans may exit at wrong times or choose funds based on short-term past returns. That affects long-term wealth creation.

Investing through regular plans with a Certified Financial Planner ensures expert monitoring, periodic rebalancing, and emotional discipline during market volatility. The value of such guidance often outweighs the cost difference.

» Expected growth and corpus sufficiency

With your current monthly investments of Rs 1.25 lakh and existing corpus, your goals are within reach if you maintain consistency for the next 20 years. Equity mutual funds, managed actively and reviewed regularly, can deliver sufficient long-term growth to reach Rs 20 crore and Rs 2 crore goals.

However, inflation and currency movement should also be considered since you are an NRI. You may need to increase your SIP by 5% to 10% every year as income grows. This step-up approach will provide a margin of safety.

Avoid pausing or withdrawing SIPs even during market corrections. Those phases often give the best accumulation advantage.

» Emergency fund and liquidity for NRIs

As an NRI, maintaining liquidity in both India and UAE is important. Keep at least six months’ living expenses in an NRE savings account or liquid fund for emergencies. In India, you may also maintain a small emergency reserve in a low-volatility liquid mutual fund. This ensures easy access in case of family needs or sudden travel.

Do not use long-term investments for emergency purposes. That disrupts compounding and goal progress.

» Protection through insurance and family cover

Your investment portfolio is strong, but wealth protection is equally vital. You should have term insurance coverage of at least 15 times your annual income. This ensures your daughter’s education and family lifestyle remain secure in case of unforeseen events.

Buy a separate term plan in India rather than mixing insurance with ULIPs. Health insurance should cover both you and your family in India as well as UAE, depending on residence status. Add a top-up policy to cover major hospitalisation costs.

Avoid endowment or money-back policies. They offer poor returns and reduce flexibility. Term insurance and health cover are pure protection tools.

» Gratuity and retirement integration

Your current employer gratuity of Rs 35 lakh is a good foundation for your retirement fund. You can let it grow as a separate component. When you finally retire, you can integrate that amount with your retirement corpus. Do not use it for consumption before retirement.

At age 65, your corpus should provide inflation-protected income for 25 to 30 years. Systematic withdrawals from mutual funds will give more flexibility and tax efficiency than annuities. Annuities often provide low returns and restrict access to capital. A diversified mutual fund-based withdrawal plan allows better control and legacy planning.

» NRI-specific considerations

As an NRI investor, continue investing through NRE/NRO accounts in mutual funds that accept NRI participation. Keep track of FATCA and KYC compliance regularly. Use online tracking to monitor all folios in one place.

Ensure nomination and estate planning are updated for all investments. NRIs sometimes miss this step, which creates legal complications later. Create a Will in India covering all Indian assets. This helps your family access them without delay.

Also check your repatriation options for maturity proceeds when you eventually move back to India or retire elsewhere. Keep your financial records and folios in joint names where possible.

» Behavioural and psychological readiness

You have already shown great discipline by staying invested for four years and maintaining SIPs across multiple funds. Continue this patience. Avoid chasing short-term performance or frequent fund changes.

Market cycles will test your emotions, but the investor who stays consistent gains the most. Always remember that time in the market matters more than timing the market.

Increase your SIPs slowly with income growth. Even a small annual increment makes a big difference over 20 years. Focus on long-term goals, not short-term fluctuations.

» Final Insights

Your overall financial foundation is strong. You already save a significant part of your income, invest systematically, and have a clear vision for your daughter’s education and your retirement. With small refinements—simplifying mutual funds, reducing duplication, exiting ULIPs after lock-in, and maintaining annual reviews—you can easily reach your Rs 20 crore and Rs 2 crore goals within the next 20 years.

Continue your disciplined SIPs, step them up yearly, and keep your protection and liquidity in place. Avoid complex or unregulated products. Stay with actively managed mutual funds through Certified Financial Planner-guided regular plans.

You are on the right path. Just keep the discipline, patience, and clarity that you already have. Your financial independence and your daughter’s future education goals are well within reach.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner,

www.holisticinvestment.in

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