My monthly salary is 85k net, I have fixed expenses of 45K and I bought 1 flat which I have given on rent and earning 12000 and paying EMI of 25000, my fixed expenses doesn't include the EMI of 25k. I have a stocks of 4 lacs and mutual funds of 6 lacs approx,PPF of 4.5 lacs. I am doing SIP of 2000 per month now because withdrawal 10 lacs in 2024 to buy the flat. Currently I am living in rented accommodation and paying 14000 rent which is the part of fixed expenses as mentioned above how can I plan to built corpus on 1 crore in next 10 years, my current age is 38.

Ans: You are 38 years old now. Your net monthly salary is Rs. 85,000. Your fixed expenses are Rs. 45,000. EMI on flat is Rs. 25,000. You receive Rs. 12,000 as rent. You live in a rented house and pay Rs. 14,000 as rent.

You have Rs. 4 lakh in stocks, Rs. 6 lakh in mutual funds, and Rs. 4.5 lakh in PPF. Your SIP is Rs. 2,000 per month currently. Your short-term goal is to build a corpus of Rs. 1 crore in the next 10 years.

Let’s work out a full strategy. We will look at income, expenses, investments, risks, and habits. You can reach your goal. But you must act with discipline from today.

? Understanding Your Monthly Cash Flow

– Salary in hand is Rs. 85,000 per month.
– Fixed expenses are Rs. 45,000.
– EMI is Rs. 25,000.
– You earn Rs. 12,000 monthly from rental income.
– So, your real net inflow is Rs. 97,000.

Your total outgo is Rs. 70,000 (EMI + expenses).
This leaves you with Rs. 27,000 surplus each month.
This is your investible surplus.

Out of this, you are investing only Rs. 2,000 via SIP.
That is too low. It must be increased immediately.

You are under-utilising your potential to build wealth.
You can do much more with this Rs. 27,000 surplus.

? Current Asset Base Assessment

– Mutual Funds: Rs. 6 lakh.
– Direct Stocks: Rs. 4 lakh.
– PPF: Rs. 4.5 lakh.
– Total financial assets: Rs. 14.5 lakh.

This is a good starting base at age 38.
But it must grow much faster from now.
Your Rs. 10 lakh withdrawal for flat has slowed compounding.
Now is the time to restart SIPs in full flow.

Avoid touching mutual funds or stocks again for purchases.
Let this money grow untouched till your long-term goal.

? Goal Setting: Rs. 1 Crore in 10 Years

You want Rs. 1 crore in 10 years.
This is a realistic and achievable goal.

But you cannot depend on existing assets alone.
You must create a consistent and growing investment habit.
And also restructure the current asset allocation.

With 10 years’ time, you can use equity-focused mutual funds.
They can offer long-term compounding if invested smartly.

Avoid fixed deposits for this goal.
FD returns are taxable and low.

Do not use PPF for this target also.
PPF is safe but grows slowly and has long lock-in.

? Required Action: Increase SIP Immediately

You are currently investing Rs. 2,000 only.
This is too small for your goal.

You can safely invest Rs. 20,000–22,000 monthly.
Even Rs. 25,000 is possible, considering your surplus.
Start SIP in actively managed mutual funds now.

Don’t go with direct mutual funds platforms.
They offer no advice and no review.

In long-term wealth creation, support matters more than platform cost.
Invest in regular plans through a good MFD tied to a Certified Financial Planner.

Avoid index funds. They blindly copy the market.
They hold weak and loss-making companies too.
They offer no protection during market crashes.

Actively managed funds are better.
They shift from poor sectors to good ones.
They rebalance and protect during bear markets.

This improves overall return and reduces emotional panic.

? Direct Stock Exposure Evaluation

You hold Rs. 4 lakh in direct equity stocks.
This is manageable for now.

But limit your direct equity to 10%–15% of your total wealth.
Direct stocks carry high risk and need constant tracking.

You are a salaried professional. You may not get time to review them regularly.
Better to move a part of stock holding to mutual funds.
Use mutual funds to get expert fund managers working for you.

This reduces risk and gives better diversification.

? PPF Role in Wealth Creation

PPF is a long-term saving instrument.
It is safe and gives tax-free returns.
But return is low and growth is slow.

Use PPF only for long-term safety or retirement support.
Do not depend on it for building Rs. 1 crore in 10 years.
Use mutual funds as your primary tool for this goal.

You may continue small yearly deposits in PPF for safety.
But increase SIPs aggressively for wealth building.

? Your Real Estate Position

You have already bought a flat.
EMI is Rs. 25,000. Rent income is Rs. 12,000.

So your net EMI burden is Rs. 13,000 per month.
This is fine for now.

But don’t consider real estate as an investment vehicle anymore.
It has low liquidity, high maintenance, and limited tax efficiency.
Also, its returns are not predictable.

Going forward, avoid adding more property.
Focus only on financial assets like mutual funds and stocks.
They are liquid, transparent, and tax-efficient.

? Emergency Fund and Insurance

Check if you have a proper emergency fund.
You must keep at least Rs. 1.5 lakh in a liquid mutual fund.
This should cover 3 months of expenses and EMI.

Do not mix this with investment portfolio.
This money is only for emergencies.

Also, check your term insurance and health insurance.
Both are critical to protect your long-term plan.

You must have Rs. 50 lakh to Rs. 1 crore term insurance.
Health insurance should be at least Rs. 5–10 lakh family floater.

Insurance is your financial safety net.
It protects your investments from sudden shocks.

? How To Build Rs. 1 Crore

To reach Rs. 1 crore in 10 years:
– Increase SIP to Rs. 20,000 or more.
– Avoid withdrawals from SIP corpus.
– Choose actively managed equity mutual funds.
– Add SIP top-up of 10% yearly.
– Reinvest dividends and gains.
– Review portfolio every 6 months.
– Shift stock money partly to mutual funds.
– Cut back on any unnecessary luxury expenses.
– Use bonuses and incentives for lump sum investments.
– Avoid switching funds frequently.
– Stay invested during market corrections.

Discipline, patience and consistency are key to reach Rs. 1 crore.
Do not pause SIPs unless there is a serious emergency.

? Tax Considerations for Mutual Funds

You must understand the new mutual fund tax rules.
For equity mutual funds:
– Long-term gains over Rs. 1.25 lakh are taxed at 12.5%.
– Short-term gains are taxed at 20%.

For debt mutual funds:
– Both short- and long-term gains are taxed as per your tax slab.

So, hold equity mutual funds for long term.
This helps you reduce tax and build wealth.
Avoid unnecessary redemptions before 1 year.
Always take tax-efficient withdrawal route.

Use Systematic Withdrawal Plans after 10 years.
This will create monthly income with lower tax outgo.

? Behavioural Discipline Matters

Do not chase short-term returns.
Avoid daily checking of NAV and portfolio.
Stick to SIP plans even when market goes down.

Most wealth is lost by acting out of fear or greed.
Market corrections are normal.
Stay calm and continue your plan.

This is why regular plans through MFDs matter.
They give emotional and behavioural support.

Direct fund platforms don’t do this.
They leave you alone when the market falls.
This leads to bad exits and long-term damage.

? Finally

You can reach your Rs. 1 crore target in 10 years.
You have enough surplus and time to build it.
But action is needed now.

Start SIP of Rs. 20,000–25,000 every month.
Use regular mutual funds through a Certified Financial Planner and MFD.
Avoid direct stocks, direct mutual funds and index funds.
Control your expenses. Build emergency fund. Review every 6 months.
Stay consistent. Stay invested.

This plan will give you financial independence at 48.
And peace of mind for future.

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