By buld_online 
I’m 25 and started investing seriously in September 2024, even though I’ve been earning decently since age 22. Until recently, I was putting Rs 80,000–Rs 1 lakh into mutual funds every month, with an in-hand salary of Rs 1.5L + Rs 25K in EPF (employee + employer). Post-appraisal and recent tax changes, my monthly in-hand has risen to Rs 1.8L, and EPF contributions are now Rs 3.6K/month.
Here’s my current portfolio:
Mutual Funds (SIP): Rs 7.5L
Direct Stocks: Rs 1.8L
EPF: Rs 4.7L
US ETFs: Rs 1L
Liquid Cash: Rs 2L
Now, here’s the twist: I recently got into a real estate purchase. Initially, I was eyeing a plot for under Rs 20 lakh, but my father found a much better one for Rs 35 lakh + Rs 5 lakh in registration. He went ahead and paid the full Rs 38 lakh on my behalf (since I didn’t have enough liquidity). I now want to repay him in full within 3 years, ideally before I get married.
My repayment plan:
Save Rs 1.2L/month toward repaying the Rs 38L
Continue SIPs at Rs 10K/month
Allocate Rs 10K/month for lifestyle/travel/fun
Rs 40K/month toward living expenses
But here’s my concern: I had originally planned to build a Rs 1 crore mutual fund portfolio by 30, which now seems out of reach with this shift in priorities.
The land is near my hometown, a fast-developing area. Prices have more than doubled in the past few years, and real estate momentum looks strong. It could be a great long-term asset—but I’m unsure if I’ve derailed my investing momentum too soon. Should I stop SIPs temporarily and go all-in on repaying the Rs 38 lakh? Or is it better to strike a balance between debt repayment and long-term wealth creation?
Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance
At 25, you’ve already built a strong financial base with diversified investments across mutual funds, stocks, US ETFs, EPF, and some cash reserves. Your decision to purchase real estate, supported by your father, adds another asset class to your portfolio. While the ₹38L land purchase might prove valuable over time, the key concern is the over-allocation to a single, illiquid asset. Real estate can complement a diversified plan, but concentrating too much into one property—especially early in your financial journey—can reduce flexibility and increase concentration risk.
Your repayment plan of Rs 1.2L per month over 3 years is practical and reflects a strong sense of responsibility. It’s good to see that you’re continuing SIPs of Rs 10K/month and managing your living expenses within the remaining income. Halting all investments to prioritize repayment may seem efficient, but it can stall your compounding journey and deepen
overexposure to real estate. Even a reduced SIP helps keep your equity participation alive and supports your long-term wealth-building efforts.
Mutual funds offer liquidity, diversification, and accessibility—advantages that real estate doesn’t. By continuing your SIPs and planning to increase them once the repayment is complete, you stay aligned with your goals. With existing investments around Rs 17 lakh, you’re not starting from scratch. Once the debt is cleared, your monthly surplus can be redirected to significantly accelerate your investment journey and get back on track quickly.
To further strengthen your approach, adopt a step-up investment strategy. As your income increases through appraisals or bonuses, raise your SIPs gradually—say by ₹3,000 to ₹8,000 every 6–12 months. This ensures your investment effort grows with your earning potential, without compromising lifestyle or repayment goals. In short, balance is key: repay your father with discipline, but continue investing systematically to avoid long-term setbacks and stay on course for financial freedom.