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Ramalingam Kalirajan |11200 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 24, 2026

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Apr 24, 2026Hindi

Namaste Kindly suggest me that how could I achieve the goal of 5 crore,my current investments are in (with 10% increase every year) Axis large cap mutual fund - 1600 UTI Nifty 50 index fund - 1600 HDFC Nifty smallcap 250 index fund - 1000 HDFC Nifty midcap 150 index fund - 1000 Bandhan small cap fund - 1000 PPF - 150000 Thanks

Ans: It is very good that you already started investing across multiple mutual fund categories and also contributing regularly to PPF. Increasing SIP by 10% every year is a powerful strategy. This alone can help you move strongly towards your Rs 5 crore goal.

Now the important step is to structure your portfolio correctly so the journey becomes faster and safer.

» First step before planning Rs 5 crore goal

To reach Rs 5 crore successfully, three things decide the result:

– how many years available
– how much monthly investment possible
– how regularly SIP increases every year

Since your SIP already increases by 10% yearly, your probability of success improves significantly.

If horizon is:

– 10 years → requires aggressive allocation and higher SIP
– 15 years → achievable with disciplined growth allocation
– 20+ years → very achievable with moderate SIP increase

Longer horizon makes goal easier.

» Review of your current investment structure

Your present investments include:

– large cap category fund
– multiple index category funds
– small cap category fund
– PPF contribution

This shows diversification effort. But some improvement is required.

Currently index category exposure is high in your portfolio.

Index category funds have limitations:

– they only copy market returns
– they cannot identify future strong companies early
– they cannot shift sectors when valuations become expensive
– they cannot reduce downside risk during corrections
– they cannot generate extra alpha above market

For a large target like Rs 5 crore, actively managed category funds support better long-term growth probability.

So gradually reducing index exposure and increasing actively managed allocation improves results.

» Suggested improved mutual fund structure for Rs 5 crore goal

A stronger structure would be:

– Flexi cap category fund (core growth engine)
– Large & midcap category fund (balance + growth)
– Midcap category fund (acceleration engine)
– One small cap category fund (limited allocation only)
– Continue PPF as safety anchor

This combination improves long-term compounding strength.

» Role of PPF in your Rs 5 crore journey

Your yearly PPF contribution of Rs 1.5 lakh is excellent.

Benefits:

– completely tax-free maturity
– stable compounding
– supports capital safety
– reduces portfolio risk

PPF should be continued without interruption.

It works as the foundation layer of your portfolio.

» How much SIP normally required for Rs 5 crore target

To reach Rs 5 crore:

You must follow three rules:

– increase SIP every year (already doing correctly)
– avoid stopping SIP during market corrections
– keep equity allocation strong for long horizon

Most investors fail not because of wrong funds but because they stop SIP during market volatility.

Your 10% yearly increase strategy is very powerful here.

» Important correction required in your current allocation

At present:

– small cap exposure already exists
– index exposure is high
– flexi cap exposure missing

Better adjustment:

– add flexi cap category fund
– add large & midcap category fund
– limit small cap allocation to one scheme only
– reduce index exposure gradually over time

This improves return consistency.

» Additional steps to reach Rs 5 crore faster

You can strengthen your journey further by:

– increasing SIP whenever income increases
– investing bonuses through lump sum
– reviewing portfolio once per year
– avoiding too many schemes
– staying invested minimum 12–15 years

Consistency matters more than timing.

» Finally

Your discipline of investing across categories, contributing to PPF, and increasing SIP by 10% yearly already puts you on a strong path toward your Rs 5 crore goal.

To improve success probability further:

– reduce excess index exposure gradually
– add flexi cap allocation
– include large & midcap category fund
– continue only one small cap category fund
– continue PPF without interruption

With these improvements and long-term discipline, achieving Rs 5 crore becomes very realistic.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/

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