I am a 42-year-old entrepreneur with a portfolio of around ₹12 crore spread across equity mutual funds (55%), real estate (25%), debt mutual funds (15%) and 5% in savings account. While my investments have grown well, I feel my portfolio is becoming difficult to manage. How should I simplify my investments?
– Name withheld on request
Based on the available information, we will have to make some assumptions on how your portfolio is split to answer this question.
About 55% or ₹6.6 crore is parked in equity mutual funds. This is followed by real estate investments that make up around 25% of the investments ( ₹3 crore) and debt mutual funds and cash or other investments make up the remaining 20% (15% debt, 5% cash/other). However, it has to be redesigned to be easily accessible. A portfolio that has grown well is not the same as a portfolio that is well-structured.
Let’s take this one bucket at a time. Start by streamlining your equity holdings. Remove any overlaps, avoid duplication in the holdings across different funds, and if you can, consolidate all , especially if there are any small non-core investments in certain funds. This will help you with ease of access and give you a clearer, clutter-free picture of where your overall portfolio stands.
For debt, it is crucial to ensure the allocation in short-term or liquid options and review credit quality carefully.
Overall, the best way to structure these investments is by adding a layer of financial planning. Bifurcate your current corpus of ₹12 crore into goal-specific buckets and surplus. For a 42-year-old entrepreneur, this typically includes children’s higher education, , a planned business reinvestment, and any near-term large expenditure. Assume this exercise assigns roughly ₹7 crore of the portfolio to goal-specific buckets. That leaves approximately ₹5 crore as surplus wealth — money beyond what the defined goals demand.
Surplus strategy
The ₹5 crore surplus then gets divided across three purpose buckets:
● Capital preservation (20% of surplus – ₹1 crore): , near-term liquidity, and stable assets. Low churn, non-negotiable.
● Wealth growth (55% of surplus – ₹2.75 crore): Long-horizon equity and income-generating real estate.
● Legacy and estate (25% of surplus – ₹1.25 crore): Assets earmarked for intergenerational transfer, including jointly held property, nominated instruments, and any planned gifting.
This simple exercise will ensure that you have a more easily manageable portfolio in hand that continues to serve your current and future needs.
Nehal Mota is co-founder and CEO of Finnovate, a financial planning app