A 32-year-old investor with a substantial portfolio is seeking a clear path to grow his wealth to ₹1.25 crore within the next three years. With no financial liabilities and a disciplined savings habit, he is well-positioned to achieve this ambitious target with strategic adjustments.
Current Financial Standing and the Road Ahead
The individual's current investment corpus stands at approximately ₹68 lakh. This is split into ₹50 lakh allocated to direct equities and the remaining ₹18 lakh in mutual funds. He consistently invests ₹40,000 per month through Systematic Investment Plans (SIPs), with a planned 10% annual step-up. Furthermore, he has an additional ₹15 lakh ready for deployment to accelerate his goal of building a ₹1.25 crore portfolio.
According to certified financial planner Vivek Banka, the investor is absolutely on track. Assuming a prudent annual return of around 12%, his existing portfolio, ongoing SIPs, and the incremental investment can potentially take his corpus close to ₹1.2 crore in three years. However, Banka emphasizes that success hinges not just on market returns but on maintaining discipline and avoiding common investment pitfalls.
Strategic Rebalancing for Portfolio Stability
A critical observation in the analysis is the investor's relatively high exposure to direct stocks. For post-pandemic investors, direct equities typically warrant a lower allocation compared to professionally managed funds. Equity mutual funds offer greater predictability and stability through inherent diversification and expert management, which is crucial for goal-based investing.
Banka recommends a two-step rebalancing act:
- Deploy the incremental ₹15 lakh into a mix of diversified equity mutual funds.
- Gradually realign a portion of the existing ₹50 lakh in direct equities into equity mutual funds to improve overall portfolio stability.
This advice is particularly relevant given that in 2025, nearly 50% of listed Indian stocks are trading more than 30% below their peaks, highlighting the volatility and stock-specific risks in a concentrated portfolio. The existing ₹40,000 monthly SIP with an annual step-up is an excellent habit that must continue, as it enforces discipline and averages out market volatility over time.
Essential Safety Checks and Final Takeaways
To ensure the investment journey is not derailed by unforeseen events, the investor must institute crucial safety measures. He should maintain a liquid emergency fund covering at least six months of expenses, secure adequate health and life insurance coverage, and avoid exotic or long lock-in products that limit financial flexibility.
With these measures in place, achieving a ₹1.2 crore corpus is a realistic objective, and favourable market conditions could help exceed the target. Banka adds a vital final note: if this corpus is for a specific goal with a defined withdrawal date, the investor must gradually reduce equity exposure—in both direct stocks and mutual funds—as he approaches the three-year horizon. This final phase de-risking will protect the accumulated wealth from short-term market volatility.
