I am 32 years old and currently have an investment portfolio worth approximately ₹68 lakh, with around ₹50 lakh allocated to equities and the balance invested in mutual funds. I invest ₹40,000 per month through SIPs, with a 10% annual step-up. I have no financial liabilities and am considering investing an additional ₹15 lakh, either in similar instruments or through diversified options. My goal is to build a portfolio of ₹1.25 crore over the next three years. What approach should I take to achieve this objective?
– Name withheld on request
You are absolutely on track to achieve this goal. Assuming a prudent return of around 12% on your investments, your current portfolio, ongoing SIPs and incremental investments together can take you close to ₹1.2 crore over the next three years.
However, reaching this target will depend not just on returns, but on maintaining discipline and avoiding investment missteps along the way.
At present, your portfolio consists of ₹50 lakh in direct equities and ₹18 lakh in mutual funds. You also plan to deploy another ₹15 lakh. This combination alone, if managed well, should help you reach close to ₹1.16 crore over the stated period.
That said, your exposure to direct equities appears relatively high.
Rebalancing risk
If you are a post-covid investor, it is important to recognise that direct equities typically warrant a lower allocation in a portfolio. Equity mutual funds offer greater predictability and stability through diversification and professional management.
I would therefore recommend two steps:
- Deploy the incremental ₹15 lakh into a mix of diversified equity mutual funds, and
- Consider gradually realigning a portion of the existing ₹50 lakh in direct equities into equity funds to improve portfolio stability.
It is worth noting that in 2025, nearly 50% of listed Indian stocks are trading more than 30% below their peaks.
Your ₹40,000 monthly SIP with an annual step-up is an excellent habit and should be continued. It ensures disciplined investing and smooths out market volatility over time.
Safety checks
To ensure you do not need to dip into this portfolio during emergencies, keep the following in mind:
Final takeaway
With these measures in place, achieving a ₹1.2 crore corpus is a realistic objective. If market conditions are favourable, you could even exceed this target.
Finally, if this corpus is meant for a specific goal with a defined withdrawal timeline, ensure that you gradually reduce equity exposure—both direct stocks and mutual funds—as you approach the end of the investment horizon. This will help protect the corpus from market volatility, especially in the final phase.
Vivek Banka is a certified financial planner and founder of GoalTeller.
