He wants to ensure Rs 75 lakh is available for her wedding, planned twenty years down the line. Lastly, he aims to accumulate a retirement corpus of Rs 2 crore for himself within the same twenty-year horizon, planning to retire by the age of 57.
These aspirations are familiar. Many middle-income families dream of giving their children the best education, hosting a beautiful wedding, and enjoying a dignified retirement. What sets Harsh apart is his proactive approach to achieving these dreams.Currently, Harsh is investing Rs 40,000 every month through SIPs in four mutual funds (Rs 10,000 each). These include two flexi-cap funds—Parag Parikh Flexi Cap and HDFC Flexi Cap—along with the Tata Small Cap Fund and a Motilal Oswal fund.In addition to his monthly SIPs, he has invested one and a half lakh rupees each in two funds as lump sums—JM Flexicap and Quant Large Cap.
His portfolio is already worth Rs 14 lakh, and he now plans to increase his monthly SIP by Rs 15,000 starting this month (April 2025).
While Harsh has done most things right—setting clear goals, starting early, and investing regularly—he sought validation and advice from Anil Rego, Founder and CEO of Right Horizons. Rego had encouraging words, but also some important recommendations.
According to Rego, Harsh is broadly on the right track. His goals related to his daughter’s education and marriage are achievable if he continues his SIPs consistently and adds the extra Rs 15,000 as planned.
However, Rego highlighted a common mistake made by many investors: underestimating the impact of inflation, particularly on long-term goals like retirement.
To put this in context, consider this. Twenty years ago, a middle-class wedding might have cost between Rs 5 to 10 lakh.
Today, the same wedding can easily cost five times as much, if not more. Likewise, what seems like a comfortable retirement amount today might prove inadequate two decades down the line.
A Rs 2 crore corpus may sound sufficient, but in real terms, its purchasing power could be considerably lower after twenty years of inflation.
To counter this, Rego advised Harsh to stay committed to his plan of stepping up his SIP. By doing so, and possibly increasing it further in the coming years as his income grows, Harsh can build a more resilient portfolio that keeps pace with rising costs.
Another aspect that came up during the discussion was fund selection. Rego pointed out that Harsh’s portfolio, while strong in parts, could be simplified.
He recommended removing or replacing the Quant Large Cap Fund, which he believes might not add much value to Harsh’s long-term strategy.
Instead, Rego suggested consolidating into well-performing existing funds like Parag Parikh Flexi Cap and HDFC Flexi Cap. He also recommended considering a consistent large-cap performer like ICICI Prudential Bluechip Fund.
This advice echoes a broader principle that seasoned investors often follow: fewer, high-quality funds are better than a crowded portfolio.
When portfolios get cluttered with too many overlapping schemes, it becomes harder to track performance and easier to lose focus. It is not about chasing the hottest fund, but about sticking with consistent performers over time.
Harsh’s story is a reminder of the quiet power of SIPs. Imagine planting a mango tree. You water it regularly, tend to it patiently, and over the years, it grows into something that provides shade, fruit, and value beyond what was initially invested.
SIPs work in much the same way. Each small contribution compounds over time, aided by market growth and the magic of rupee cost averaging.
Many investors get anxious during market downturns. But those who stay the course, just as Harsh plans to, are often rewarded over the long haul. SIPs are not about timing the market; they are about time in the market.
Also read: Does your SIP date matter for returns? Here’s what data showsHarsh Jain’s case is both inspiring and instructional. With clarity in goals, discipline in investing, and openness to expert advice, he is building a roadmap for financial freedom.
And while the numbers may vary, the core lessons apply to anyone looking to secure their future—start early, stay consistent, invest with purpose, and review periodically.
The journey to Rs 3-4 crores may not happen overnight. But with the right mindset and a bit of patience, it is absolutely within reach.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
