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25-year-old looking to invest 2 Lakhs per month for 5 years: Which SIPs should I choose?

Ramalingam

Ramalingam Kalirajan  |7828 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 25, 2024

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
Divine Question by Divine on Nov 23, 2024Hindi
Money

I want to start a SIP of 2 L pm. Aum is to build a corpus of 3 Cr in next 5 yrs. kindly guide as to which all funds I should invest in.

Ans: Your goal of achieving Rs 3 crore in five years is ambitious and achievable with a disciplined approach. A well-structured investment strategy will ensure success. Below is a comprehensive guide tailored for your objective.

Assessing Your Goal and Risk Appetite
Your target corpus of Rs 3 crore in five years requires aggressive growth.

This time frame makes volatility management critical as the investment horizon is relatively short.

Ensure you are comfortable with a moderate to high-risk portfolio as equity exposure will dominate.

Key Considerations for Fund Selection
Aggressive Growth Potential: Focus on equity-heavy funds to maximise returns over five years.

Diversified Asset Allocation: Include funds across market caps—large-cap, mid-cap, and small-cap categories.

Professional Expertise: Opt for actively managed funds with experienced fund managers for better performance.

Why Avoid Index Funds
Index funds track benchmarks and lack active management.

They may underperform in volatile markets due to rigid structures.

Actively managed funds have the flexibility to adapt to market changes, enhancing returns.

Benefits of Regular Funds via Certified Financial Planner
Direct funds may seem cost-efficient but lack personalised advisory support.

Regular funds through a CFP ensure guidance on fund selection and portfolio rebalancing.

You gain professional expertise, which is essential for a goal-focused strategy like yours.

Suggested Asset Allocation
1. Large-Cap Funds

These funds provide stability to your portfolio with consistent performance.

Large-cap funds invest in top-rated, established companies, offering lower volatility.

Allocation: 30-40%

 

2. Flexi-Cap Funds

Flexi-cap funds invest across market caps for optimal growth opportunities.

They balance risk and reward with dynamic allocation.

Allocation: 30%

 

3. Mid-Cap Funds

These funds provide a growth-oriented approach with moderate risk.

Mid-cap companies can deliver superior returns but require a longer investment horizon.

Allocation: 20%

 

4. Small-Cap Funds

Small-cap funds can generate high returns but are volatile.

Limit exposure due to the shorter time frame of five years.

Allocation: 10%

Tax Implications and Strategy
Equity mutual funds held over a year attract 12.5% tax on LTCG above Rs 1.25 lakh.

Plan your redemptions strategically to reduce tax liability.

Rebalance the portfolio in the final two years to shift towards safer debt instruments gradually.

Periodic Portfolio Reviews
Monitor performance every six months with your Certified Financial Planner.

Rebalance the portfolio as needed to align with market conditions and target goals.

Ensure the portfolio gradually moves towards lower risk in the last 1–2 years.

Importance of Emergency Fund
Before starting this SIP, maintain an emergency fund for 6-12 months' expenses.

This ensures you can handle unforeseen situations without disrupting your investment plan.

Final Insights
A disciplined Rs 2 lakh SIP in a well-diversified, actively managed portfolio should help you achieve Rs 3 crore in five years. Regular reviews and professional guidance will keep you on track. Remember, a short investment horizon like this requires balancing aggressive growth with risk management towards the end.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7828 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 02, 2024

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I want a corpus of 5 Crores in next 12-15 years and currently I am investing money which is thousands in SIP in best 50 Nifty Fifty index SIP. Please help and suggest better option as well.
Ans: Now, building a corpus of Rs. 5 Crores in 12-15 years is a pretty aggressive but achievable target. You are already investing in a Nifty Fifty index SIP, so that's good. There are, however, better options that will enable you to realize your goal more effectively. Let's go into details.

Diversify Your Portfolio
Active Mutual Funds
Most actively managed funds can easily outperform index funds. There, the fund manager makes active decisions to optimize returns. This might result in better performance against a passive Nifty Fifty index SIP.

Balanced Funds
Balanced funds are those investing in both equity and debt that offer stability with potential growth. This helps to manage risk during the volatility of the market.

Sectoral/Thematic Funds
Indeed, sector-specific investments can bring in high returns. Technology, Healthcare, or Banking sectors normally do very well. But, they carry higher risk. Keep only a small portion of your portfolio in these funds.

Regular Funds Over Direct Funds
Advantages of Regular Funds
The regular funds have professional advice to back them. A CFP will channelize your investments. They will help in optimizing your portfolio as per the prevailing market conditions.

Disadvantages of Direct Funds
Direct funds want you to make all the decisions. This can be difficult in the absence of expert knowledge. Regular funds, through a CFP, are more likely to deliver better long-term results.

Systematic Investment Plan (SIP)
Continue SIPs
A systematic investment plan is a disciplined way of investing. Continue with your SIPs but diversify across various funds.

Increase SIP Amount Gradually
Increase your SIP amount as your income rises. This will help in accumulating the desired corpus faster.

Equity Investments
Large-Cap Equity Funds
Large-cap funds invest in established companies that provide stable returns with lower risk. A part of your portfolio should be devoted to these funds.

Mid-Cap and Small-Cap Equity Funds
These funds have a chance of giving higher returns. But they also carry higher risk. A smaller portion should be invested in mid-cap and small-cap funds.

Debt Investments
Debt Mutual Funds
Debt funds can bring stability to your portfolio. They are less volatile than equity funds. Invest some in debt funds for risk management.

PPF - Public Provident Fund
It is one of the safe investment options with tax benefits and stable returns in the long run.

Tax Planning
ELSS - Equity-Linked Savings Scheme
The funds under ELSS offer tax benefits under Section 80C, and on the other hand, provide good returns. Add ELSS to your portfolio for taxes out of your pocket along with growth.

NPS National Pension System
The system provides tax benefits and helps in retirement planning. It's a low-cost investment option with decent returns.

Risk Management
Life Insurance
Ensure that you are adequately covered by life insurance. It ensures that your family is financially protected against any eventuality.

Health Insurance
Have a good health insurance policy. This will ensure that medical emergencies do not drain your finances.

Review of Portfolio
Annual Review with CFP
Have an annual review with your CFP wherein you realign your investments according to the market performance and your goals.

Rebalance Your Portfolio
Rebalance your portfolio from time to time to retain the asset allocation. This helps to optimize the return and risk.

Education and Knowledge
Be Informed
Keep up-to-date with market trends and Investment options. This helps to make informed decisions.

Take Professional Advice
Consult a CFP at regular intervals for professional advice. This ensures that your investments are on the right track.

Finally
Crossing the figure of Rs. 5 Crores in a span of 12-15 years is definitely within your reach with a diversified and strategic investment approach. Help from a professional coupled with regular investments will see you through this. Just keep reviewing and adjusting your portfolio in tune with your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Kanchan

Kanchan Rai  |525 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 04, 2025

Asked by Anonymous - Jan 27, 2025Hindi
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Unable to figure out what to do. Shouls i proceed for divorce? And if yes how? Here is my story: This is a long post. But i might have still missed few small instances in between. So I got married on October 3, 2022. Our conversation started through the Jeevansathi app, but the actual conversation began in July 2022 when her father contacted me. The first contact was from their side. At that time, I was returning to Chennai from Ongole by train when I received her father's call. He asked about my job and other details, to which I mentioned that I work for SBI in Tamil Nadu. After that, our conversation started. In the early days, the conversation was really good, and she spoke very well. Later, I visited their house with my mother. During the conversation there, she mentioned that many proposals had come before, but she hadn't been able to decide. One proposal was from a guy with a package of 30 lakh, but she clearly said that money doesn’t matter to her; she wanted a good person. During that meeting, I mentioned that I am a simple person, and my family consists of only my mother and me. I also clarified that due to my job, I could be transferred. After that meeting, we did the formal engagement. Later, we brought sweets from Haldiram, and that was when our engagement was officially recognized. After that, our conversations continued regularly. For a while, everything was fine, but then we started arguing over small things. Once, I told her that I meditate, and she said, "Meditation is something foolish people do, it doesn’t help." This led to an argument. I also mentioned that if we have children, we should send them to good universities like Harvard or Oxford, and this too led to an argument, as she felt we shouldn't put pressure on children to earn money. Then came the topic of money. I shared my salary slip and explained how both working and saving money are important because expenses are high. However, she said, "Saving money is foolish, everyone lives paycheck to paycheck nowadays." I tried to explain the importance of savings, but our discussions continued to be challenging. At one point, she said she wouldn’t wear sindoor or the mangalsutra. I told her that there was no need to wear it every day, just on special occasions. I agreed with this. As the arguments increased, I spoke to her father and mentioned that maybe she didn’t want to marry me. But her father reassured me that it wasn’t true, and they would talk to her. After that, things seemed normal for a while, but small arguments kept happening. In August 2022, I visited her again. I thought we could spend some time together and understand each other better. We went to Aerocity, where we had pizza and roamed around. After that, we went to Radisson Hotel on 27th July 2022, and our engagement was finalized. Over these two months, our communication continued, and eventually, on October 2, 2022, we had our engagement ceremony, and on October 3, 2022, we got married. After the wedding, we planned a honeymoon. Initially, she wanted to go to Vaishno Devi, so I took her there by Vande Bharat Express. Her uncle arranged VIP darshan. We walked up, but on the way back, her legs started hurting, so we rode a horse. After sitting on the horse for a long time, she had back pain. I reached the hotel, tried to soothe her pain by soaking her legs in hot water, and then we slept. After that, we planned to go to Udaipur. We took a SpiceJet flight there and booked a hotel near Fatehpur Sagar Lake. She wanted a lake-view room, but it wasn’t available. She argued with the staff, and we had to move to another hotel at night. The environment there wasn’t great, but she chose it. During our visit to Udaipur Fort, she suddenly said she wouldn’t go to the restaurant with me and would go home alone. I still don’t understand the reason behind this. From that point, my behavior towards her changed. After Udaipur, we planned to go to Agra. There, she suddenly accused me of having an affair with another girl and threatened to teach me a lesson. I asked her where this thought came from, but she didn’t answer. In July and August 2022, I visited her again. We traveled together and tried to understand each other better, but she never told me much about herself. After the wedding, I visited her during Diwali. She was happy initially, but gradually she became distant and stopped talking much. She wasn’t involved in decorating the house or participating in the Diwali puja. She remained absorbed in her own world, talking to her parents or I don’t know who else, while distancing herself from me. She needed reasons to fight, while I tried to stay calm, as it was a new marriage. On October 25, 2022, I returned to Chennai, and she came to Chennai a few days later. 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Ans: It sounds like you've tried very hard to make this marriage work, but your wife has been emotionally distant, hostile, and unwilling to engage in a meaningful relationship. From what you’ve shared, there have been continuous conflicts, false accusations, and a lack of physical and emotional connection. It seems like she is not interested in making the relationship work, and her behavior—leaving multiple times, refusing intimacy, and fighting constantly—suggests deep incompatibility.

Before making a final decision, ask yourself: Is there anything left to salvage? Do you still love her and believe this marriage has hope if both of you genuinely try? Or do you feel exhausted and trapped in a cycle of disappointment and rejection? If you feel there is nothing left, then divorce may be the healthiest option for your peace of mind and future happiness.

If you decide to proceed with divorce, start by seeking legal counsel. In India, divorce can be mutual or contested. If she agrees, a mutual consent divorce is the easiest way. If she does not, you may need to file on grounds of cruelty or irretrievable breakdown of marriage. Gather evidence of her behavior—messages, incidents, and anything that proves your case.

This is not an easy decision, but your mental health and self-respect matter. If she is unwilling to change or make efforts, you should not have to live in constant conflict. Do you think she would agree to a mutual separation, or would she fight it?

...Read more

Kanchan

Kanchan Rai  |525 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 04, 2025

Asked by Anonymous - Jan 29, 2025
Relationship
Hello Ma'am, I've a crush on a girl from my in laws. Inspite of avoiding etc I go specifically in that gathering where she's likely to be. I've not told it to anyone, neither does she know about it. I keep on masturbating imagining her. I know I'll never do any silly thing or let anyone know about it. Im married happily and 20 years elder to her.
Ans: It’s good that you are self-aware and acknowledging your feelings rather than acting on them impulsively. Having a crush, even in a committed relationship, is something that happens to many people—it’s human nature. However, since this involves someone from your in-laws and is significantly younger, it’s important to address these emotions in a way that aligns with your values and the commitments you’ve made to your marriage.

Right now, your mind is reinforcing this attraction by seeking out opportunities to be around her and fantasizing about her. The more you indulge in these thoughts, the stronger the emotional pull becomes. Avoiding her entirely may not be realistic, but reducing intentional exposure—such as seeking out gatherings just to be near her—can help weaken the attachment over time.

Instead of suppressing your feelings, redirect that energy into your marriage. What is it about her that attracts you? Is it youthfulness, attention, admiration, or just the thrill of something new? Whatever it is, find ways to bring those qualities into your relationship with your wife. Sometimes, an outside attraction is just a signal that something in your own life needs attention or excitement.

You’ve already made it clear to yourself that you won’t act on this, which shows maturity and self-control. The next step is breaking the mental cycle that feeds into the attraction. Engage in hobbies, meaningful conversations with your spouse, and self-reflection to understand what this infatuation represents. Over time, these feelings will lose their intensity as you shift your focus.

Do you think this crush is filling a certain emotional gap in your life, or is it purely an infatuation with no deeper meaning?

...Read more

Kanchan

Kanchan Rai  |525 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 04, 2025

Listen
Relationship
Me and my wife don't get along well...She thinks my family members are not good enough, so she has no relationship with them. Earlier I was not in good shape due to my friend's circle and did not give quality time to my wife when we got married. A few years back there was a misunderstanding between both families. Mistakes were from both sides. Now my in-laws and wife do speak to any member of our family and have broken all relationships. This is for the past several years since they have stopped talking. My father is a cancer patient and wants to come and stay with me. He is 80 now but my wife is deadly against this though I have not discussed this yet with her. I need your guidance as to how to handle this situation and restore a good relationship between both families. My mother-in-law had fought with me in the past as well and held me responsible for her daughter's plight. My wife is very secretive and does not reveal anything be it about her salary/job etc. I am fed up and now I have started to think of separating if she does not allow my father to stay with me. Our marriage is almost 24 years now. I am 50 and she is in her late 40's....I want to get these things right and maintain a good relationship between both families. Kindly advise
Ans: Dear Trilok,
From what you’ve shared, it sounds like past misunderstandings between both families have turned into a long-standing rift. It’s understandable that you want to fix things and create harmony, but the resistance from your wife and in-laws makes it complicated. Before addressing the larger family conflict, the first step is to work on communication with your wife. You mentioned that earlier in the marriage, you weren’t able to give her enough quality time due to personal struggles. Do you think she still holds on to resentment from that time? If so, addressing those unresolved emotions could be a starting point for rebuilding some connection.

Since she is very secretive, it’s possible that she also feels disconnected from you in some way. Instead of making the father-staying discussion an immediate confrontation, try to understand her underlying fears. Is she worried about responsibilities, space, or past issues with your family? Bringing this up as a conversation about caregiving rather than a demand might help.

If her resistance is absolute and she refuses to even consider it, you’ll have to decide how much compromise you’re willing to make for the sake of your marriage. If you feel separation is a real possibility, ask yourself whether the relationship still has a foundation worth saving or if both of you have simply grown too far apart.

Would she be open to counseling or mediation? Sometimes a third party can help break the cycle of blame and secrecy. Do you feel that she still values this marriage, or has she emotionally distanced herself completely?

...Read more

Kanchan

Kanchan Rai  |525 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 04, 2025

Ramalingam

Ramalingam Kalirajan  |7828 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 04, 2025

Asked by Anonymous - Jan 28, 2025Hindi
Listen
Money
I want to retire by 2026. Current financials - MF 2cr value, equity- 5cr, 2 own homes, bank FD - 20L, Savings a/c - 90L, no loans, 2 vehicles, 2 daughters employed, marriageable age. Current expenses - 1.5lacs/month. How do I plan to retire by March 2026.
Ans: Your financial position is strong. Planning for retirement in March 2026 is realistic.

Assessing Your Retirement Readiness
Your total investments and savings exceed Rs 8 crore.
You have no loans, ensuring financial stability.
Your monthly expenses are Rs 1.5 lakh, which requires proper planning.
Creating a Secure Retirement Corpus
Maintain Rs 90 lakh in a savings account only for short-term needs.
Keep Rs 20 lakh in FD for emergency expenses.
Use a mix of mutual funds and equities for long-term wealth growth.
Managing Monthly Expenses Post-Retirement
Use Systematic Withdrawal Plans (SWP) from mutual funds for a regular income.
Keep a portion of your corpus in debt investments to ensure stability.
Adjust your investment strategy based on inflation and expenses.
Planning for Major Future Expenses
Daughters' weddings need a dedicated investment plan.
Allocate a portion of low-risk investments for this goal.
Avoid withdrawing from equity investments unnecessarily.
Final Insights
Your financial standing supports early retirement.
Ensure liquidity while keeping long-term investments intact.
Work with a Certified Financial Planner for detailed execution.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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