FREEDOM / WISE
Worked ExampleHand-crafted

What's the right starter portfolio for a 28-year-old beginning mutual fund SIP?

Scenario

28-year-old, ₹80K/month take-home, ₹15K/month SIP capacity, 25-year horizon to retirement at 53

Inputs

Age
28
Horizon years
25
Monthly sip INR
15000
Return assumption %
12

Calculation

  1. 1.

    Core Nifty 500 index fund (60% allocation)

    60% × ₹15K → ₹9,000

  2. 2.

    Mid-cap index fund (25% allocation)

    25% × ₹15K → ₹3,750

  3. 3.

    International FoF (15% allocation)

    15% × ₹15K → ₹2,250

  4. 4.

    25-year terminal corpus at 12% nominal

    ₹15K × SIP-FV factor 1888 → ₹2.83 Cr

Conclusion

3-fund portfolio with ₹15K monthly SIP reaches ₹2.83 crore by age 53. Genuine diversification across market caps and geographies with only 3 funds — avoiding the 6-10 fund over-diversification trap most retail investors fall into.

Tradeoffs

At 10% return, terminal corpus drops to ₹2.0 crore; at 14%, rises to ₹4.0 crore. The composition matters but discipline (continuing through drawdowns) matters more.

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