Hello sir Im 34 years old and my monthly take home is 96k and 8500 rental income. have a ongoing home loan with balance amount of around 10.50L and invested around 4L in ppf, 3L in LIC, 1L in NPS, 1L in PF and started investing 40k per month in different SIPs . Can you tell me how can I achive 1cr portfolio

Ans: You are already showing great clarity. At 34 years old, with a monthly income of Rs. 96,000 and Rs. 8,500 rental income, you are taking the right steps. A Rs. 1 crore portfolio is not far from your reach. You are already investing Rs. 40,000 per month in SIPs, which is very powerful. Let us look at how to make your journey to Rs. 1 crore even stronger, more efficient, and stable.

Income and Financial Structure
Monthly salary: Rs. 96,000

Monthly rental income: Rs. 8,500

Total monthly income: Rs. 1,04,500

Home loan balance: Around Rs. 10.50 lakhs

Monthly SIP investment: Rs. 40,000

Existing investments: Rs. 4 lakhs in PPF, Rs. 3 lakhs in LIC, Rs. 1 lakh in NPS, Rs. 1 lakh in PF

You have a strong monthly income and are investing a large share. That is very encouraging.

Investment in LIC
You mentioned Rs. 3 lakhs in LIC.

LIC plans are mainly traditional insurance plans. These are not ideal for wealth creation.

Returns are often 4% to 5% per annum.

There is low flexibility and long lock-in periods.

Insurance coverage is usually very low.

What You Can Do:

If your LIC policies are endowment or money-back types, consider surrendering them.

Only surrender if they are more than 3 years old.

Use the surrendered value to invest in mutual funds.

Purchase a term insurance policy instead for protection.

Separate your insurance and investments. It gives better growth and safety both.

Home Loan Management
You have an outstanding home loan of Rs. 10.50 lakhs.

Loan repayment is a long-term commitment. It needs balance with your investing goals.

What You Should Do:

Keep paying EMIs regularly.

Don’t rush to close the loan early.

Interest on home loans gives tax benefit under Section 24.

Continue building your investment portfolio alongside.

If you get any large bonus or maturity money, partly reduce the principal. This reduces tenure and interest. But do not disturb your SIPs for this.

PPF, NPS, and PF Investments
These are all long-term and low-risk instruments. They offer safety but lower growth.

PPF: Rs. 4 lakhs invested

NPS: Rs. 1 lakh invested

PF: Rs. 1 lakh (probably EPF)

Suggestions:

Continue small amounts in PPF for debt allocation.

Don’t increase PPF limit aggressively.

Keep NPS contribution small. It has strict withdrawal rules.

Consider NPS only for tax-saving if you are using Section 80CCD(1B).

PPF and PF offer stability. But they are not enough for big wealth creation like Rs. 1 crore. For that, equity mutual funds are the core.

Mutual Fund SIP Strategy
You are investing Rs. 40,000 monthly in SIPs. This is your biggest strength.

Review the Fund Choices:

Include large cap and mid cap funds.

Add some allocation to small cap for growth.

Choose only actively managed funds.

Avoid index funds. They follow market returns only.

Actively managed funds can outperform with skilled fund managers.

Avoid direct plans if you are not professionally trained.

Direct plans save commission, but lack guidance.

You may miss underperformance or wrong fund selections.

With regular plans through a Certified Financial Planner, you get tracking and advice.

For wealth creation, direction is more important than cost saving.

How to Reach Rs. 1 Crore Portfolio
Let us now talk about building your Rs. 1 crore goal. You are already investing Rs. 40,000 per month.

This alone can help you reach Rs. 1 crore in 10–12 years. But to ensure it happens faster and more smoothly, follow the below:

What You Should Do:

Review and rebalance funds every 12 months.

Don’t stop SIPs during market fall.

Increase SIPs by 10% each year as income grows.

Keep at least 3 SIPs: one large cap, one flexi-cap, one mid/small cap.

Allocate higher amount to large and mid cap funds.

If you stick to this process, you will reach Rs. 1 crore easily in less than 12 years.

If you increase SIPs yearly, the journey becomes even shorter.

Emergency Fund Planning
You did not mention an emergency fund.

This is very important before aggressive investing.

What You Should Do:

Keep at least 4–6 months of expenses in a liquid mutual fund.

Don’t use fixed deposits or savings account for this.

This gives fast access in times of illness or job loss.

Without this fund, you may be forced to stop SIPs or redeem investments in emergency.

Life Insurance and Term Plan
You mentioned LIC, but no term plan.

A pure term plan is must for financial protection of your family.

Steps to Take:

Take a term plan of at least 15–20 times your annual income.

Keep a single term plan with good claim record.

Pay premium yearly. Choose online or offline with help of CFP.

Avoid any plan that gives maturity or money-back.

Buy term plan separately and invest separately. This gives you full benefits.

Health Insurance for Family
You did not mention health insurance.

Depending only on employer health cover is risky.

What You Should Do:

Buy a family floater health policy of Rs. 10–15 lakhs.

Add top-up cover if needed.

Check features like day-care, no-claim bonus, and room rent limit.

Medical expenses can wipe out savings. Protect your investment journey with good cover.

Tax Saving Suggestions
Let us also look at your tax-saving investments.

You are investing in PPF, LIC, NPS, PF.

These together cover Section 80C and 80CCD.

Suggestions:

Use ELSS mutual funds instead of LIC or NPS.

ELSS gives tax saving and better return.

Lock-in is only 3 years.

LIC and NPS have low returns and long lock-in. ELSS gives better flexibility and growth.

Behaviour and Discipline
Wealth building is not just about picking funds. It is about habits.

Good Practices to Follow:

Never stop SIPs due to market fall.

Don’t chase past performance only.

Review every 12 months.

Stick to the process, not emotions.

Invest with clear goals.

Behavioural discipline is the true power behind achieving Rs. 1 crore.

Asset Allocation Strategy
Keep your portfolio balanced.

Don’t put everything in equity. Don’t put everything in fixed income.

Suggested Allocation:

70% equity mutual funds

20% in PPF + PF

10% in liquid funds as emergency

Rebalance once every year with help of a Certified Financial Planner.

This keeps your risk low and return stable.

Future Increase in Income
Your income will grow every few years.

How to Use That:

Increase SIPs by Rs. 2,000–3,000 every year.

Avoid increasing lifestyle spending unnecessarily.

Invest bonuses or increments wisely.

This small step reduces time to reach Rs. 1 crore.

Common Mistakes to Avoid
Don’t stop SIPs mid-way

Don’t rely on index funds or direct plans

Don’t mix insurance and investment

Don’t keep money idle in savings account

Don’t skip financial reviews

Avoiding mistakes is as important as choosing the right investments.

Finally
You are on the right path with Rs. 40,000 SIP.

Surrender LIC if possible and reinvest that money.

Don’t touch SIPs during home loan repayment.

Create emergency fund and buy term plan.

Use ELSS for tax saving, not traditional policies.

Review with a Certified Financial Planner every year.

Your Rs. 1 crore goal is possible. You already have the base. Now you need a structure.

Stay consistent, review regularly, and keep investing with purpose.

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