With Rs 85,000 monthly SIPs, strong early investments, should I restructure my portfolio? Can FIRE be part of my plan?

I’m a 28-year-old professional working in the healthcare sector. I began my investment journey a few years ago with monthly SIPs of around Rs 50,000, which I gradually increased to Rs 85,000 per month starting this year as my income grew. My current portfolio consists of mutual funds worth Rs 27.42 lakhs, Sovereign Gold Bonds (SGBs) worth Rs 18.15 lakhs, and a Public Provident Fund (PPF) balance of Rs 4.73 lakhs, taking my total investments to approximately ₹50.30 lakhs. I would like advice on whether my current asset allocation is balanced and what adjustments I should make to optimise long-term growth and tax efficiency. Also, can I opt for FIRE? Is it possible?

Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance

See, asset allocation plays a very important role because it ensures proper diversification and helps you manage risk across different market cycles. Right now, you are in the building phase of your career, so the first priority should be strengthening your financial base rather than thinking about FIRE. Your focus should be on wealth creation with a balanced mix of Equity, Debt, Real Estate and Commodities, and in the long run, Real Estate will also play an important role in your overall allocation. Review whether you plan to buy a house in the future or if you want to add REITs for stable income and diversification. Retirement planning should also be part of your strategy, so consider adding NPS for long-term growth, tax savings, and disciplined equity exposure. One important thing to remember is that long-term wealth is created through patience, consistency, and a holistic approach to financial management.

Regarding FIRE, it is better to keep that thought aside for now because you are still early in your earning journey. FIRE requires extremely high savings, low expenses, and many years of consistency, which may not be practical at this stage. Instead, focus on improving cashflows, strengthening your investments, maintaining the right asset allocation, and managing your finances in a structured way. Over time, as your income grows and your financial base becomes stronger, you can revisit the idea of FIRE with more clarity and a realistic plan. For now, the key is to stay committed to long-term investing and holistic financial planning.

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