Investing Insights

How to be a crorepati by investing just Rs. 167 everyday for 25.5 years


A lot of people would like to start investing only once they have a sizeable amount to invest. Generally that is why, investing is deferred to mid 30s by majority. However, that is the biggest and most common mistake investors make ! Start early with small for long term investing – is the mantra for wealth creation.

You would be surprised to know by just investing Rs. 167 everyday (which would equal to Rs 5,000/- per month) for 25.5 years you can create a sizeable corpus of Rs. 1 crore ! That is the power of compounding.

Investing via monthly SIPs

Investing in an equity mutual fund scheme via an SIP is the best way to achieve your long-term goals. Equity has the potential to offer superior returns than other asset classes. It may also help you beat inflation which is essential to achieve long-term goals. They also enjoy favourable taxation. If held for more than 1 year, equities are taxed at 10% without indexation against traditional investments like fixed deposits – which are taxed at the individual slab rates.

If you can spare Rs 167/- every day, start a monthly SIP immediately in equity mutual funds. Pick a portfolio based on your risk appetite and SIP amount. If your portfolio manages to offer an annual return of 12 per cent (which is not very ambitious), you would be able to create a corpus of Rs 1 crore in 25.5 years.


Amount Invested = Rs. 15,30,000/- (Rs. 5,000/- p.m. for 25.5 years)

Wealth Gain = Rs. 85,72,957.12/-

Total value of investment at the end of 25.5 years = Rs. 1,01,02,957.12/-


Do you see how easy this is ? By saving just Rs. 167/- per day – such a tiny amount that you can easily save by not altering your lifestyle, you can create a wealth of Rs. 1 crore.

And the above chart shows, you only contributed 15% of the wealth generated. Rest amount was created by your money working for you ! What could be better ?

So start investing now – no matter how big or small – and let the power of compounding work for you to create long term wealth creation.

Portfolio tracking and rebalancing

It is important to track the performance of your mutual fund schemes regularly. Review their performance every six months or every year. If the schemes are beating the benchmark comfortably and not lagging their peers significantly, you may continue with your investments in them. If the schemes fail to perform for a year or more, you should examine the reason behind it. If you are not satisfied with the reason, you should consider selling your investments in them and shift the money to a better performer in the same category.

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