Wealth Building
Mutual Funds - The Right Way to Build Wealth
Learn the simple, smart, and time-tested formula to achieve your financial needs through mutual funds. Discover how starting early, investing in the right asset class, and saving regularly can help you build substantial wealth.
Build Wealth the Right Way
Invest Regularly with SIP
Beat Inflation
Power of Compounding
Inflation - The Biggest Hurdle
Inflation is the biggest hurdle in your financial needs achievement. Average inflation has grown by 5.64% in the last 30 years. This means your money loses value over time, making it crucial to invest in assets that beat inflation.
Higher Education
2014: ₹14.50 Lakh
2024: ₹25 Lakh
(IIM Ahmedabad PGDBM fees)
Household Expenses
2014: ₹25,000/month
2024: ₹49,200/month
(@ 7% inflation - Metro city)
Petrol
2014: ₹70-75/litre
2024: ₹95-100/litre
(Gujarat rates)
Sensex
2014: 25,414
2024: 82,365
(30th June 2014 - 30th Aug 2024)
How Inflation is Eating Your Money?
The value of your money decreases over time due to inflation. Here's how ₹1,00,000 has reduced in value at 7% inflation per annum:
1990
₹1,00,000
2000
₹50,835
2011
₹24,151
2024
₹10,022
Source: RBI - Reduced value of money @ 7% inflation p.a.
Your ₹1,00,000 from 1990 is worth only ₹10,022 today! This is why investing in assets that beat inflation is crucial.
The Right Way
Simple, smart, and time-tested formula to achieve your financial needs:
Start Early
Give time to your investment rather than timing the market, and benefit from the "Power of Compounding."
Systematic investing has a compounding effect on your investments. In the long term, an investment as low as ₹10,000 per month swells up into a huge corpus. If an investor starts early, then even with a lower invested amount, they can create a large corpus.
Mr. Early
- • Investment Start Age: 25 years
- • Monthly SIP Amount: ₹10,000
- • Investment Duration: 35 years
- • Total Invested Amount: ₹42 Lakh
- Estimated Corpus: ₹6.43 Crore*
Mr. Late
- • Investment Start Age: 45 years
- • Monthly SIP Amount: ₹20,000
- • Investment Duration: 15 years
- • Total Invested Amount: ₹36 Lakh
- Estimated Corpus: ₹1.01 Crore*
*Assuming investment in Equity Fund and an average return of 12.62% p.a. as per AMFI Best Practices Guidelines Circular No.135/BP/109-A/2024-25 dated September 10, 2024.
Starting 20 years earlier with half the monthly amount resulted in 6.4x more corpus!
Right Asset Class
Equity market has outperformed all other investment avenues. Growth of ₹1,000 in different asset classes from March 1999 to March 2024:
Source: Gold & Silver - RBI Data as on Jan 2024 | Bank & Co. Deposits - RBI Data as on Sept 2023 | Inflation - RBI Data as on Feb 2024 | Sensex TRI - ACE MF - Data as on March 2024
It is evident that in the long term, equity investments have outperformed other investment avenues and have beaten inflation by a huge margin.
Equity mutual funds + Liquidity, Transparency, and Convenience over a long-term horizon offer better risk-return pay off
Invest Regularly - Disciplined Investing Through SIP
Every investor dreams of buying at a low price and selling at a higher price. But, how does one know whether any given time is the right time to buy or sell? Many retail investors try to judge the market movements and end up losing their money in the long term.
Rupee Cost Averaging
A more successful strategy is 'Rupee Cost Averaging' wherein you invest a fixed amount regularly. Thus, you purchase more when the prices are low and purchase less when prices are high. SIP investments take advantage of this strategy.
Mr. SIP Investor
Invests ₹1,000 monthly across 4 months
Total Units: 427.02
Avg. Price: ₹9.36/unit
Value: ₹4,697.22
Mr. One Time Investor
Invests ₹4,000 at once
Total Units: 400
Avg. Price: ₹10/unit
Value: ₹4,400
The above example is merely an illustration of 'Rupee Cost Averaging'. The NAVs and returns generated are purely indicative.
Power of Compounding
Give maximum TIME to your investments to get the maximum benefit of the POWER OF COMPOUNDING.
How the value of ₹100 has changed at the rate of 12% CAGR:
5 Years
₹176
7 Years
₹311
10 Years
₹557
30 Years
₹2,996
SIP Performance in the Long Term
For instance, if our age today is 60 years, here's how different SIP amounts and start ages would have performed:
SIP of ₹10,000 per month
Start Age
25 Years
Invested: ₹42 Lakh
Corpus: ₹6.43 Cr*
Start Age
30 Years
Invested: ₹36 Lakh
Corpus: ₹3.50 Cr*
Start Age
35 Years
Invested: ₹30 Lakh
Corpus: ₹1.88 Cr*
Start Age
40 Years
Invested: ₹24 Lakh
Corpus: ₹99.40 L*
Start Age
45 Years
Invested: ₹18 Lakh
Corpus: ₹50.27 L*
SIP of ₹15,000 per month
Start Age
25 Years
Invested: ₹63 Lakh
Corpus: ₹9.64 Cr*
Start Age
30 Years
Invested: ₹54 Lakh
Corpus: ₹5.25 Cr*
Start Age
35 Years
Invested: ₹45 Lakh
Corpus: ₹2.83 Cr*
Start Age
40 Years
Invested: ₹36 Lakh
Corpus: ₹1.49 Cr*
Start Age
45 Years
Invested: ₹27 Lakh
Corpus: ₹75.41 L*
SIP of ₹25,000 per month
Start Age
25 Years
Invested: ₹1.05 Cr
Corpus: ₹16.07 Cr*
Start Age
30 Years
Invested: ₹90 Lakh
Corpus: ₹8.75 Cr*
Start Age
35 Years
Invested: ₹75 Lakh
Corpus: ₹4.71 Cr*
Start Age
40 Years
Invested: ₹60 Lakh
Corpus: ₹2.49 Cr*
Start Age
45 Years
Invested: ₹45 Lakh
Corpus: ₹1.26 Cr*
*Assuming investment in Equity Fund and an average return of 12.62% p.a. as per AMFI Best Practices Guidelines Circular No.135/BP/109-A/2024-25 dated September 10, 2024.
TOP-UP SIP - Boost Your Wealth Building Journey
A TOP-UP SIP is an SIP that grows automatically with time! Top-up SIP permits investors to boost their SIP instalments by a set amount at yearly or half-yearly intervals. This increase could correspond to the development of your future earnings and savings.
Normal SIP
- • Period: 30 years
- • Amount: ₹10,000 per month
- • Started: 30 years ago
- • Invested Amount: ₹36 Lakh
- Estimated Corpus: ₹3.50 Crore*
TOP-UP SIP
- • Period: 30 years
- • Amount: ₹10,000 per month initially
- • TOP-UP: ₹1,000 yearly
- • Started: 30 years ago
- • Invested Amount: ₹88.20 Lakh
- Estimated Corpus: ₹5.97 Crore*
*Assuming investment in Equity Fund and an average return of 12.62% p.a. as per AMFI Best Practices Guidelines Circular No.135/BP/109-A/2024-25 dated September 10, 2024.
With just ₹1,000 yearly TOP-UP, you get ₹2.47 Crore more corpus!
Automatic Route
Adapts to your rising income and increases investment automatically.
Meet Financial Needs Faster
Helps to meet financial needs faster and build wealth faster.
TOP-UP SIP is the Way to Go!
Make sure to increase your SIP investment automatically at fixed intervals.
Ready to Build Wealth the Right Way?
Start your journey towards financial freedom with mutual funds. Follow the proven formula: Start Early + Invest in Right Asset Class + Save Regularly = Financial Needs Achievement.
Disclaimer
The figures/projections are for illustrative purpose only. The situations/results may or may not materialise in future. Mutual Fund investments are subject to market risk, read all scheme related documents carefully. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
The information contained herein does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any security or investment product or an invitation, offer or solicitation to engage in any investment activity. It is strongly recommended that you seek professional investment advice before taking any investment decision.
Any investment decision that you take should be based on an assessment of your risks in consultation with your investment adviser. To the extent that any information is regarding the past performance of securities or investment products, please note such information is not a reliable indicator of future performance and should not be relied upon as a basis for an investment decision.
Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing.
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