Secrets for building a Multi Million (Crorepati) worth Portfolio

Here’s a rephrased and reorganized version of the blog with important points highlighted and structured into bullet points for better readability:

---

Achieving Financial Freedom: The 20/25 Rule

Becoming a Crorepati (millionaire) is a dream for many youngsters in their 20s. However, life often pulls us away from that aspiration. We get bogged down with routine loans like car loans, home loans, personal loans, and gold loans. These financial obligations can feel like quicksand. They drag us away from our true goals. We lose track of achieving what we really want in life.

But here’s the secret to staying on track: the 20/25 Rule.

---

Finding the Right Investment Mix: 25:25:25

When it comes to investments, there’s no one-size-fits-all. There are numerous options:

• Mutual Funds
• Equity Shares
• Real Estate (plots/land)
• Gold
• PPF (Public Provident Fund)
• NSC (National Saving Certificate)
• NPS (National Pension Scheme)

The big question is:

• Should you invest in all categories?
• Or put all your money into one?

The answer is neither. Instead, allocate your investments according to your goals and timelines. Here’s an effective strategy:

• 25% in direct equity shares – High-risk, high-return investments for long-term goals.
• 25% in Mutual Funds – Choose a mix of debt and equity schemes to balance your portfolio.
• 25% in tax-saving options – PPF or NPS, depending on your tax-saving requirements.
• 25% in real estate or gold – While these are traditional investments, they can have maintenance and monitoring challenges. If you prefer, you can increase your equity allocation based on your risk appetite.

💡 Pro Tip: Customize your investments to align with your goals. For example:

• If you plan to build a house in 5 years, allocate a portion to buying a plot in your desired location.
• For a medium-term goal like a dream vacation, invest in debt mutual funds for 2–3 years.

---

Becoming Debt-Free: The Ultimate Goal

Zero debt equals peace of mind and true financial freedom. While some loans, like education loans or home loans, may be unavoidable, others can be minimized with careful planning. Here’s how to manage debt smartly:

• Avoid unnecessary loans: Personal loans and top-up loans offered by banks are often unnecessary traps.
• Limit credit card usage:
  • Use only one credit card for essential expenses.
  • Leverage the 45-day interest-free period for emergencies like medical bills or vehicle repairs.
  • Maintain strict spending discipline to avoid high-interest charges and overspending.

💡 Debt-to-Income Ratio: Ensure your total debt does not exceed 20% of your annual income.
For example:

• If your annual income is ₹8 lakhs, keep your debt below ₹2.24 lakhs (approximately ₹18,500/month).

---

Start Investing 20% of Your Salary in Your 20s

The earlier you start, the better. Here’s a personal example:

• I began investing at 21 years old, starting with ₹500 in Mutual Funds through a Systematic Investment Plan (SIP).
• Later, I opened a Demat account to invest in direct equity shares, which are riskier but offer higher returns.
• Over the years, I consistently saved 20% of my salary, focusing on disciplined investments.

💡 My Best Experience:
In 2015, I invested in Balaji Amines shares at ₹71 per share. Today, the value has surged to over ₹1,000—a return of more than 14x!

This journey taught me to:

• Conduct fundamental and technical analysis before investing.
• Build a diversified portfolio aligned with my risk appetite and financial goals.

---

Key Takeaways for Long-Term Wealth Creation

1. Start early and stay consistent.
2. Invest wisely across multiple asset categories to balance risk and return.
3. Avoid excessive debt and use credit responsibly.
4. Align your investments with specific financial goals.

By following these principles, you can create a multi-million portfolio by the time you’re ready to retire—completely debt-free and financially secure.

---

💡 Final Thoughts:
The insights shared here are lessons from my 14-year journey in personal finance management. Start investing as early as possible, stay disciplined, and let your money work for you. Your dream of financial freedom isn’t far away if you take the right steps today.

You can always reach out to ME for a detailed planning for your Financial Freedom—let’s grow together!