My investment journey: From Randomness to Purpose

Published on / By M. Pattabiraman Twitter: @pattufreefincal

Published: November 8, 2026 at 6:00 am

In this edition of the reader story, “I’m Rakesh Gan, and this is my story of how I shifted my financial strategy from the chaotic adrenaline of speculative trading to a structured, purpose-led investment plan. After completing my MBA in 2013, I stepped into the corporate world with an average salary and a simple plan: save money in basic recurring deposits. But like many beginners, I soon drifted into stock trading. What followed was a familiar chaotic pattern—random cash market bets, painful losses in Futures & Options (F&O), and ad-hoc mutual fund investments made without clear goals or direction. I was constantly pulling money out, under-investing, and guessing my next move”.

About this series: I am grateful to readers for sharing intimate details about their financial lives, which benefits us all. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive.
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Please note: We welcome articles like this from young earners who have just started investing. See, for example, this piece by a 29-year-old: How I track financial goals without worrying about returns. We also have a “mutual fund success stories” series. See, for example, how mutual funds helped me achieve financial independence. Now, over to the reader.

The turning point came in 2019 when I discovered Freefincal and took the goal-based investing course. For the first time, I learned to view wealth creation through purpose rather than market noise. When the COVID-19 crash struck shortly after, instead of panicking, I used the sharp dip to aggressively build and lock in my target asset allocation. Now, after years of staying the course and watching the system work, I am finally ready to share my journey—and how structuring my portfolio around four distinct goals (Retirement, Child’s Education, Emergency Fund, and Leisure) completely transformed my financial trajectory.

As of November 1, 2026, the performance metrics for the portfolio reflect total investment returns since their respective start dates. These XIRR calculations fully account for periodic rebalancing executed whenever an asset class deviated by more than 2-3% from its target allocation. Also, plan is to gradually reduce the Risky asset allocation to Fixed income assets as the target goal approaches.

  1. Goal 1: Retirement Fund (Accounts for 83.76% of total net worth)

My current Retirement Corpus is ~16x of my Annual Expenses

  • Fixed Income vs. Risky Assets Split (Ideal: 40:60):
    • Fixed Income Assets allocation: 43.5% (representing 31% of Retirement Fund) 
    • Risky Assets allocation: 56.5% (representing 40% of Retirement Fund) 
  • Fixed Income Asset Breakdown (Percentage of Fixed Income): (Wt. Avg. XIRR: 7.62%)
    • Public Provident Fund (PPF): 37.34% (XIRR: 7.10%, since 2014)
    • EPFO & VPF: 29.15% (XIRR: ~8.10%, since 2013)
    • Gratuity: 20.29% (XIRR: NA%, since 2020)
    • SBI Gilt Fund: 4.51% (XIRR: 11.38%, since 2021)
    • NPS Corporate a/c (Gilts & Corporate Bonds): 4.04% (XIRR: 1.2%, since 2023)
    • Tata Arbitrage Fund: 2.50% (XIRR: 6.37%, since 2026)
    • KVP-Rashbihari post office: 2.18% (XIRR: 7.25%, since 2018)
  • Risky Asset Breakdown (Percentage of Risky Asset): (Wt. Avg. XIRR: 14.10%)
    • Nifty Bees ETF: 52.58% (Ideal: 50%) (XIRR: 14.60%, since 2020)
    • UTI Nifty Next 50 Index Fund: 18.92% (Ideal: 20%) (XIRR: 19.94%, since 2020)
    • Kotak Midcap Fund: 18.79% (Ideal: 20%) (XIRR: 1.20%, since 2025)
    • Gold Bees ETF: 9.71% (Ideal: 10%) (XIRR: -6.67%, since 2026)
  • Real Estate (considering only 2nd Flat): 28.62% (at cost price, since 2023)
  1. Goal 2: Child Education (Accounts for 10.18% of total net worth)
  • Fixed Income vs. Risky Assets Split: (Ideal: 50:50):
    • Fixed Income Asset Total: 53.2% of the goal 
    • Risky Asset Total: 46.8% of the goal 
  • Fixed Income Breakdown (Percentage of Fixed Income):
    • Minor PPF: 91% (XIRR: 7.10%, since 2021)
    • Kotak Arbitrage Fund: 9% (XIRR: 5.87%, since 2022)
  • Risky Asset Breakdown (Percentage of Risky Assets):
    • ICICI Prudential Nifty 50 Index Fund: 100% (XIRR: 5.03%, since 2021)
  1. Emergency Fund: Accounts for 4.55% of total net worth (7 months of current expenses)
  • Savings Bank a/c: 84%, Fixed Deposits: 12%, Cash in Hand: 4%, Liabilities: 0% 
  1. Goal 3: Leisure / Vacation: Accounts for 1.51% of total net worth
  • Axis Money Market Mutual Fund (XIRR: 6.57%)

Read more stories: reader story archive.

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