I’m 19, want to invest Rs 2–3 lakh monthly from my business — how do I build a balanced, growth-focused portfolio?

Hi, I’m 19 and I run a small business. I am planning to invest Rs 2-3 lakh per month. Currently, all funds are in my savings account, and I’m considering withdrawing a small salary from the business for personal expenses. I’m open to risky investments but want a balanced portfolio. So far, I have Rs 25,000 in mutual funds and Rs 15,000 in stocks (invested last September, currently down Rs 1,000). I’d like advice on how to invest this capital wisely, expected returns, and strategies to grow my wealth while managing risk.

Advice by Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance

Great that you plan to pay yourself a “salary.” Always treat business capital and personal investments as two different pockets. This ensures that market volatility or personal expenses don’t interfere with your business operations.

> Keep at least 6 months of personal expenses in a liquid fund or high-interest savings account. This is your safety net, so you don’t have to touch long-term investments during emergencies.

> Health insurance is non-negotiable. Take a term life cover only if you have dependents or large liabilities (like loans). This protects wealth creation from getting derailed by unforeseen events.

> Your current investments (Rs 25K in mutual funds, Rs 15K in stocks):

I don’t have the scheme details for your Rs 25K in mutual funds. Ideally, you should keep this money in a simple, diversified index fund or a flexicap fund. As for the Rs 15K in stocks, at this stage it’s better to avoid direct stock-picking. Unless you plan to dedicate serious time to research, let professionals (mutual funds) manage your equity exposure.

> Long-term mindset:

> Remember, real wealth creation happens only when you stay invested for 10–20 years without constantly chasing fads. Avoid spreading your money into too many schemes or chasing thematic/sector funds (like defence, EV, or pharma). Stick to broad, time-tested categories.

Suggested Asset Allocation (for your monthly Rs 2–3 lakh investment)

> Index Equity Funds (35%) – Focus on low-cost, broad-based indices like Nifty Next 50 and Nifty 500. These give exposure to India’s growth story beyond just the top 50 companies.

> Flexicap Funds (40%) – A fund manager actively moves between large, mid, and small caps. Good for capturing India’s long-term growth without you worrying about timing the market.

> International Funds / ETFs (20%) – Exposure to US indices (like S&P 500, Nasdaq 100) via FoFs or ETFs. This gives you dollar diversification and exposure to global tech leaders.

> Debt Funds (5%) – Short-duration or Banking & PSU funds. They act as a stabiliser during equity volatility and give you liquidity when you need it.

Asset Class	Allocation %	Suggested Options	Purpose / Benefit
Index Equity Funds	35%	Nifty Next 50, Nifty 500 Index Funds	Low-cost, diversified exposure to India’s growth
Flexicap Funds	40%	Actively managed Flexicap Funds	Capture large, mid, and small-cap opportunities
International Funds	20%	US-focused FoFs or ETFs (S&P 500, Nasdaq 100)	Dollar diversification, exposure to global leaders
Debt Funds	5%	Short-duration or Banking & PSU Debt Funds	Stability, liquidity, and emergency fund support

On your monthly Rs 2–3 lakh, this translates to:

Rs 70,000–1,05,000 → Index Funds

Rs 80,000–1,20,000 → Flexicap Funds

Rs 40,000–60,000 → International Funds

Rs 10,000–15,000 → Debt Funds