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Building long-term wealth through mutual funds requires a prudent mix of asset allocation, disciplined investing, and regular portfolio reviews. For investors targeting Rs 1 crore in 10 years, the focus should be on balancing growth-oriented equity exposure with stability, while maintaining diversification across funds and investment styles.
A similar query came from Krishnamohan, a 34-year-old investor and viewer of The Money Show on ETNow, highlighting this approach. With a high-risk appetite and a 10-year investment horizon, he is already investing through SIPs in multiple equity funds including flexi-cap, multi-cap, mid-cap, and small-cap schemes.
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His current portfolio stands at around Rs 5.85 lakh, with additional financial cushions such as an emergency fund, fixed deposits of Rs 2 lakh, contributions to Sukanya Samriddhi, and provident fund benefits through his service. He plans to invest an additional Rs 45,000 per month and seeks guidance on optimising his portfolio.
“Since you have a 10-year horizon, you said you are also willing to take a little more risk on the portfolio, I would suggest you can have anywhere between a 75% to 80% of equity and 20% to 25% of debt. Debt will comprise of your PPF, Sukanya Samriddhi, all of that that you are doing today,” the expert said.
Commenting on the investor’s query of investing in NPS, the expert said that Maybe you will not need an NPS because the 20% to 25% of the portfolio that is likely to be in debt will be taken care of by the PPF in your portfolio itself.
The expert said though SBI Mutual Fund is the largest AMC and there is no risk as such, but if you spread it out, it is always better.
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“You can exit SBI Contra, you can exit that from the portfolio and shift to a Bandhan Large HDFC Smallcap. This will also give you a little balance on your market cap mix compared to what you have,” the expert said.
For investors like Krishnamohan, the combination of disciplined SIP investing, periodic step-ups, and a well-diversified portfolio can play a crucial role in achieving long-term financial goals. With the added advantage of pension income and existing savings buffers, maintaining consistency and making timely adjustments can help turn the Rs 1 crore target into a realistic outcome.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
A similar query came from Krishnamohan, a 34-year-old investor and viewer of The Money Show on ETNow, highlighting this approach. With a high-risk appetite and a 10-year investment horizon, he is already investing through SIPs in multiple equity funds including flexi-cap, multi-cap, mid-cap, and small-cap schemes.
Also Read | MF Tracker: After a strong 7 year run, can this international fund maintain momentum?
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His current portfolio stands at around Rs 5.85 lakh, with additional financial cushions such as an emergency fund, fixed deposits of Rs 2 lakh, contributions to Sukanya Samriddhi, and provident fund benefits through his service. He plans to invest an additional Rs 45,000 per month and seeks guidance on optimising his portfolio.
Step-up SIP to reach the target
According to financial expert Shweta Rajani, achieving the Rs 1 crore goal is feasible with some tweaks. She suggests increasing SIP contributions gradually by 5–10% annually. This step-up strategy can significantly improve the chances of reaching the target within the given time frame.Asset allocation: Focus on equity with balance
Given his long investment horizon and high-risk appetite, Rajani recommends allocating around 75–80% of the portfolio to equity and 20–25% to debt. The debt portion can be comfortably managed through existing instruments such as PPF and Sukanya Samriddhi, reducing the need for additional products.“Since you have a 10-year horizon, you said you are also willing to take a little more risk on the portfolio, I would suggest you can have anywhere between a 75% to 80% of equity and 20% to 25% of debt. Debt will comprise of your PPF, Sukanya Samriddhi, all of that that you are doing today,” the expert said.
Commenting on the investor’s query of investing in NPS, the expert said that Maybe you will not need an NPS because the 20% to 25% of the portfolio that is likely to be in debt will be taken care of by the PPF in your portfolio itself.
Diversification is important
A well-structured portfolio should ensure diversification across fund houses, investment styles, and market capitalisations. Rajani points out that nearly 44% of Krishnamohan’s portfolio is concentrated in a single AMC - SBI Mutual Fund. While this may not pose an immediate risk, spreading investments across multiple fund houses can help reduce concentration risk and improve overall portfolio balance.The expert said though SBI Mutual Fund is the largest AMC and there is no risk as such, but if you spread it out, it is always better.
Portfolio tweaks to improve balance
To enhance diversification and market-cap allocation, Rajani suggests exiting certain schemes such as SBI Contra and reallocating to other funds that can better balance the portfolio. Adjustments in large-cap and small-cap exposure can help create a more stable yet growth-oriented portfolio structure.Also Read | Nippon India Mutual Fund dominates Akshaya Tritiya ETF volumes with 63% market share
“You can exit SBI Contra, you can exit that from the portfolio and shift to a Bandhan Large HDFC Smallcap. This will also give you a little balance on your market cap mix compared to what you have,” the expert said.
For investors like Krishnamohan, the combination of disciplined SIP investing, periodic step-ups, and a well-diversified portfolio can play a crucial role in achieving long-term financial goals. With the added advantage of pension income and existing savings buffers, maintaining consistency and making timely adjustments can help turn the Rs 1 crore target into a realistic outcome.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
