How do I accumulate Rs 1 Crore in 10 years?

How to save Rs 1 Crore

A reader sent me the following query:
“Dev, I want to save Rs 1 crore in next 10 years. I want to take the least possible risk and don’t want to put all my earnings into savings – as I also want to enjoy my life. So to put it very bluntly, I want to contribute the minimum possible amount every month, to achieve my goal. What should I do?”
I was really happy to see the brutal honesty of the reader. Isn’t this exactly what all of us want?
Least risk – Minimum investments – Maximum Returns.
Wouldn’t our lives be financially perfect if we could achieve the above 3 conditions by investing in just one product?
But I am sorry. It does not happen in real life. So lets move on…
Now if the reader had a time-horizon of 15 years, I would have suggested PPF. But even that has a limitation that I will just come back to in a bit.
Putting roughly Rs 27,000 a month in this least risk instrument for 15 years would have created a corpus of Rs 1 Crore after 15 years. Now this is assuming that PPF rates stay at atleast 8.7% for next 15 years. But as already mentioned, the limitation of this brilliant instrument (PPF) is that it does not allow an investment of more than Rs 1.5 lacs in any given year. So Rs 27,000 a month cannot be invested in PPF. Also the tenure is 15 years. So PPF is out of question for the reader.
The tenure here is 10 years. So even if some instrument gives a post-tax return of 8.7% in 10 years, then it will still create a corpus of only Rs 51 lacs (for a contribution of Rs 27,000 a month). That’s a solid 49% less than what is required. To achieve Rs 1 Cr from a 8.7%-assured-return-instrument, monthly contribution has to be around Rs 53,000.
For most people, it is not possible to invest this amount every month. Especially for the reader who says that he wants to enjoy his life too and not just save for future. Personally, I am glad to see someone giving more weightage to living life today, rather than just focusing on saving for future. Infact, it reminds me of one of my favorite quotes which I regularly use when I talk to people:
“No point being the richest man in the graveyard.”
Coming back to the question of accumulating Rs 1 Crore in 10 years. So either the monthly contribution needs to go up (from Rs 27K @ 8.7%), or the return expectations need to go up (and with it, the risk being undertaken). In this particular case, I think both will have to be increased.
So if the reader is willing to move away from his low-risk strategy (which he should, considering a long enough time horizon of 10 years), then things can actually work out. Now I am not sure what amount the reader can comfortably manage to invest every month (He did not provide me with other details). But I am assuming that if he intends to save a big 8-figure corpus in 10 years, he will acknowledge the fact that he would need to make some sacrifices today. That’s how personal financial related mathematics works.
With that settled, lets focus on the expected returns. PPF delivers 8.7%. Any instrument that gives lesser is not worth discussing here.
This leaves us with the task of choosing a suitable rate of return, which is higher than 8.7% and which is more importantly, realistic. Equity MFs have delivered returns exceeding 15% in past. But expecting them to do so in future is a little risky. Its best to tone down expectations to a lower level – I personally prefer 12% – my favorite in calculations (my worst case scenario for equity MFs is 10%).
I have seen many bloggers and financial planners choose 15% and even 18%. My best wishes to them. 🙂 If it happens, then it will be great for them as well as for me. But if it doesn’t, they will end up with a lower corpus, not me. Why? Because my return expectations are much lower at 12%. This means that I will be making a higher monthly contribution, which will ensure that I will achieve the target corpus even if the actual returns achieved are less than 15% (but ofcourse more than or equal to 12%).
So with 12% expected returns, what is the required monthly investment for next 10 years?
Simple excel calculation shows that to create a Rs 1 crore corpus after 10 years, the reader needs to invest Rs 43,000 a month (for 120 months) and hope that fund gives an average returns of 12%.
For sake of comparison, lets see what happens when other rates (of return) are considered:

Save 1 Crore 10 Years

Now as you can see above, higher the return expectations, lower the required monthly investment. But problem with high expectations is that they are hardly met. So even if some equity funds have managed to deliver 15% in past 20 years, it is difficult to guess what returns these funds (or other funds) will give over the next 10 years. So by keeping our expectations low, the chances of ending up with less than Rs 1 crore are further reduced.

But here is a very important point to note. Agreed that Rs 1 crore is a lot of money. But after 10 years, the value of this amount won’t be equal to what it is today. And unfortunately, many people don’t realize this. Just to give a rough idea, a crore rupees today would be worth only Rs 40 lacs to Rs 50 lacs after 10 years. So as a reader, you need to keep the time value ofmoney in mind when doing such calculations.


Case Study – How a 10-Year delay can Destroy your ‘Get-Rich’ Plan?

It’s not easy to become rich. And while making such a statement, I am ready to ignore the definition of ‘Rich’ too. If you don’t consider yourself to be rich, then you already know how tough it is to become one.
And just to verify the concept of ‘Being-Rich-Is-Difficult’, go out and ask someone you consider to be rich. I am sure that they will also tell you that it is not easy to become rich. And it’s even tougher to stay rich.
But no matter what anybody else tells you, my view is that the biggest tool you have in your journey to become rich is Time. If you have time on your side, even small amounts can become eye-popping(ly) huge – as you will see in this case study.
So lets get straight into a some numbers….

There are two friends named Vineet and Raunak. Both are of same age (25) and earn decent amounts of money, which theoretically gives them the option of investing a fixed amount every year (after expenses).
Scenario 1:
Vineet is frugal and believes in saving. He knows that he does not have a rich inheritance and hence, needs to save for himself and his family. Vineet starts investing Rs 1 lac every year. But he does this only for 10 years between the age of 25 and 35, i.e. he saves a lac rupees every year for 10 years and then stops.
His total contribution is Rs 10 lacs (between age 25 and 35).
Raunak on the other hand thinks that since he is quite young, he can postpone saving/investing for future. He thinks that if he does not save starting from the age 25, and does it after a few years…even then he will be able to become very rich.
So in this example, Raunak starts investing the same amount as Vineet (Rs 1 lac) at the age of 35 and continues doing it upto the age of 60.
Raunak’s total contribution is Rs 25 lacs (between age 35 and 60).
Now comes the day of reckoning. Both have reached the age of 60.
What’s your guess? Who has more money at age 60?
It might sound surprising, but the answer is Vineet. Having contributed just Rs 10 lacs, Vineet now owns a huge corpus of Rs 6.65 Crores!!
And what about Raunak? The answer is that he becomes rich too. But having contributed Rs 25 lacs, he has accumulated a much smaller corpus of Rs 2.36 Crores. And that is despite having invested for 15 more years than Vineet.
Scenario 1: Vineet (Rs 6.65 Crores) – Raunak (Rs 2.36 Crores)
Here is the calculation sheet for your reference. The return assumption in this and further scenarios is 14% per annum.

Delay in Investing Scenario 1
Lets go on and evaluate a few more scenarios…
Scenario 2:
Vineet is still frugal and still believes in saving. Like the first scenario, Vineet here also invests Rs 1 lac every year from the 25 to age 35. But Raunak has changed. Though Raunak still does not save anything between the age 25 and 35, he now does realize the power of compounding. So he decides to invest the double amount (than that of Vineet) between the age 35 and 60.
That is, Raunak invests Rs 2 lacs every year for 25 years.
So in this particular case…
Vineet’s total contribution is Rs 10 lacs (between age 25 and 35).
Raunak’s total contribution is Rs 50 lacs (between age 35 and 60).
Once again, the day of reckoning arrives and both reach the age of 60. What’s your guess now? Who has more money at 60?
Answer once again, and surprisingly enough is Vineet!
Vineet still attains a corpus of Rs 6.65 Crores as in the first scenario. But Raunak after doubling his investments is still able to reach Rs 4.73 Crores. Now you see? This is the power of investing early. And so big can be the difference when you delay your investments. 
Here is the calculation sheet for your reference.
Delay in Investing Scenario 2

Scenario 2: Vineet (Rs 6.65 Crores) – Raunak (Rs 4.73 Crores)

Lets move on to other scenarios now…
Scenario 3:
Now lets make this analysis more realistic. As we progress in life, our incomes generally rise. And so do our expenses. So shouldn’t our investments and savings also rise with time?
Suppose you start your career earning Rs 20,000 a month. And you also start investing Rs 5000 a month at that time. After a few years, your salary is almost Rs 70,000. And if you are still investing just Rs 5000, then you are fooling yourself. Investing is done for one’s own future. And it’s one’s own responsibility to maximize it as soon as possible.
So lets get back to this new scenario.
Here Vineet starts by investing Rs 1 lac at the age of 25. But over the next 10 years, he increases his yearly investment by a small 5%. So over a period of 10 years (between 25 and 35), he invests Rs 12.58 lacs.
On the other hand, Raunak starts late at 35 with Rs 1 lac a year. But he also starts earning more and more every year and is able to increase his yearly investments by 10% (double that of Vineet’s 5%). His total contribution over a period of 25 years (between 35 and 60) is Rs 98.3 lacs.
Day of reckoning…
I wont even ask you this time. 🙂
Once again, Vineet has more money when he retires at 60!! Vineet manages Rs 7.94 Crores in comparison to Rs 5.08 Crores accumulated by Raunak.
Isn’t this amazing? Starting as early as possible and just investing for few years and then just waiting. And after a few decades, you have more money than someone who started late, invested many times more than what you invested.
This is indeed the 8thWonder of the World. We need to give standing ovation to the concept of Compounding. 🙂
Here is the sheet for 3rdscenario’s calculation.
Delay in Investing Scenario 3
Scenario 3: Vineet (Rs 7.94 Crores) – Raunak (Rs 5.08 Crores)
So lets move on to the 4thscenario.
Scenario 4:
There is only one change in this scenario over the 3rd one. I am making this scenario more realistic. And the change I am making in this one is based on the question that why should Vineet stop investing at age of 35? Shouldn’t he continue further and upto the age of 60?
So here is it….Vineet does not stop investing at 35. He continues investing upto 60 and increasing his contribution by 5% every year. Compared to him, Raunak increases his contribution 10% every year.
To cut the long story short, after 60 years, Vineet has Rs 13.3 Crores and Raunak has Rs 5.08 Crores.
I have nothing more to say for this scenario. 🙂
Scenario 4: Vineet (Rs 13.30 Crores) – Raunak (Rs 5.08 Crores)
Here is the sheet for your reference.
Delay in Investing Scenario 4
I can go on and on with more scenarios but that would only help the case of investing early, which we have already proven in previous four scenarios. For example, we can reduce the return assumption from 14% to smaller numbers, etc. But the point which I am trying to make through this post, is, that there are some really amazing benefits of starting early when it comes to investing.
You can start later and still get to the same final corpus. But that would require you to earn much higher rates of returns…and that too for many years – which is neither easy nor practical.
And just to illustrate this, here is the 5th scenario 🙂
Scenario 5:
Vineet invests Rs 1 Lac for 10 years (from 25 to 35)
Vineet’s Return assumption = 14%
Corpus at age 60 = Rs 6.6 Crores
On the other hand,
Raunak invests Rs 1 Lac for 25 years (from 35 to 60)
Raunak’s Return assumption = 20%
Corpus at age 60 = Rs 6.8 Crores
Scenario 5: Vineet (Rs 6.6 Crores @ 14%) – Raunak (Rs 6.8 Crores @ 20%)
Both have accumulated almost same corpus after reaching 60. And Raunak has started 10 years late and invested for 15 more years. But do you think 20% per year return can be attained? I don’t think so. It’s almost impossible. It is not a reasonable expectation to have.
For your reference, here is the calculation sheet of Scenario 5
Delay in Investing Scenario 5
All these five scenarios show that if you start early, you don’t need to earn eye-popping rates of returns to accumulate big sums of money. All you need is time. And when you start early, you have a hell lot of time. The earlier you start, longer does your money have the time to grow.
And to end this analysis, I leave you with a very small 4-Step guide to help you become amazingly rich:

1) Start early

If possible, invest from the day you start earning your first salary. You would be surprised at how much these small amounts can increase when invested for long periods of time.

2) Treat Investments as Monthly Bills and be regular with them.

Unless and until you have the discipline to invest regularly, you can forget about accumulating a large corpus by the time your retire. You should invest first and then use remaining money for expenses.

3) Do whatever it takes to maximize the amount you can invest

First thing is that no matter what happens, you need to invest regularly. And in case you have surplus money, make it a point to invest as much of it as possible.

4) Be patient. And in long term, you will need loads of it

One of the biggest mistakes people make is that they withdraw/touch the money they start accumulating. The biggest problem of compounding, or I should say the power (not available to many) is that it works best, when you do not disturb it. In initial few years, the results will seem extremely slow. And you will start losing your faith on it. But hold on. In a few more years, you will realize the power of compounding.
This post clearly indicates that there is price to be paid for any delay in investing. And mind you, this price is not small. You can delay and still become rich.  But remember that the biggest side effect of procrastination (when investing) is that you will not become as rich as you might have become, had you not procrastinated.

Investing Later Now Procrastination

So irrespective of your age, do not wait any further. Go on…Now is the time to begin investing for long-term. And remember that the cost of delaying your investment is enormous. Even one year makes a huge difference.

Reader’s Story: How I Created a Corpus of Rs 3.7 Crores in 10 Years!! – Part 2

Note: This post is second part of this series about how a reader created a corpus of almost Rs 4 Crores in just 10 years. Like the first part, even this part is worded by Ajay Sreenivasan – a loyal reader of Stable Investor. And if you haven’t read the first part, please do so immediately (Part 1) before going ahead with this post. 

In this part (2nd), he reflects back on his experiences and shares his learnings…which can be used as broad guidelines by other mutual fund investors.

So over to Ajay, once again…

Self-Analysis of My 10+ Years of Investment Journey

Advantages I Had as an Investor
  1. I had a reasonably stable job and income.
  2. I had sufficient surplus to invest in markets & mutual funds.
  3. I had a habit of Saving. And it was not new and had its origin in times, much before I came to Gulf.
  4. Combined with this habit, I also had the Discipline to stick with it.
  5. Though I really started ‘planned process of investing’ quite late, I still had age on my side….and this always helps in allowing ‘Compounding’ to create its magic.
  6. Because of above point, I had a reasonable amount of time to achieve my targets.
  7. Since I had a decent regular income, I had a decent risk taking ability.
  8. I was lucky to be part of markets which became extremely volatile at times. I was lucky to witness quite a few market crashes. Why? Because SIP works best if the markets are volatile and present the investors with many opportunities to invest ‘more’ at lower levels.
  9. This was a big advantage. I had no personal loan or housing loan to worry about.
  10. Another big one. I had already bought a home prior to investing even a Rupee…and luckily, I did it much before the real estate boom started.

Things I did Wrong:

  1. I was late to start investing. And I have seen people repent…and I mean really repent…when they realise that just because they were late to start investing by a few year, their final corpus was nowhere near where it could actually have been.
  2. I put most of my early savings into products which actually reduced purchasing power (read Insurance products).
  3. I was very late in creating a plan for investing. I should have done it almost a decade earlier than when I actually did it.
  4. I invested randomly without any goals, during the early part of my career.
  5. I started getting into direct stock investing, without having the proper knowledge of stock markets or valuations.
  6. At times, I went over board with my direct stock investing.

Things I Did Right:
  1. I saved and invested as much as possible. And when markets were down, I invested more.
  2. Even though I questioned my own beliefs every now and then, I followed Systematic Investing diligently.
  3. I identified my mistakes pretty soon (in a few years!!) and started focusing on Mutual Fund investing…as this helped reduce chances of committing errors in direct stock investing.
  4. I got myself a financial plan and invested as per the plan (and with a purpose).
  5. I took adequate Term Insurance plan. And this in itself is a big factor, when you want to sleep peacefully at night, without having to worry about what will happen to your loved ones when you are not around.
  6. I realized and more importantly acted towards separating Insurance from Investment.
  7. I said no to ULIPs.
  8. I learnt the importance of Asset Allocation and acted upon it.
  9. Even though I had so many period where I could have panicked (and at times did) in last 8 years, I did not quit midway. I continued with my plans.
  10. I concentrated on investing the set investment amount (Monthly SIP x No of Months as per original plan)…sooner than bothering about the target amount.
  11. I cut my losses in direct stocks and re-invested the money in equity fund or debt as per the required asset allocation.
  12. I remained invested through out the period of 10 years.
  13. I invested only in well diversified Mutual Funds (max. 7) across fund houses.
  14. I chose Direct Plans as soon as it was introduced.
  15. I used Liquid Funds to park money when I had to transfer money to equity funds through STP (Systematic Transfer Plan).
  16. I made mistakes and learnt from those mistakes..and took the experience.
  17. I managed not to invest in real estate in the crazy boom of 2006 – 2009. But only time will tell whether I was correct or not.

Lessons To Be Learnt:

Lesson 1

Before Investing, ask yourself these questions:

– Why should I even invest?
– What am I investing in?
– How will I get my capital back?
– What return I will get back?
– Will the return match inflation?
– When do I need this money back?
– Is it the right investment option for me?
– What are the real possibilities of not receiving the capital or expected returns?
– Will my asset allocation allow me to invest in this option?
– And whether the current market valuations reasonable enough to invest in equity?

Lesson 2

Save as much as possible and start investing as soon as possible. And ideally, you should start investing from the very first day you get your first salary.

Lesson 3

If you are afraid of stocks and mutual funds, start by investing small amounts to gain practical experience of positive and negative portfolio returns. You might end up losing money, but experience gained will help you a lot when you plan for the big amount you want to end up with eventually.

Lesson 4

Have a plan. Even if you think it is difficult to achieve it. Having it is almost half the battle won. And if you cant make your own plan, get in touch with good financial planners. They will charge you money for their planning services. Don’t worry. You are ready to pay your doctors. Why not be ready to pay those who are looking after your financial health? Think about it.

Lesson 5

Invest whatever is possible towards your goals. And it seriously doesn’t matter initially whether its small or big amount. Just go and do it.

Lesson 6

Are you a regular person who goes to office and does not know much about stock markets? Stick to investing in mutual funds via SIP. End of Discussion.

Lesson 7

Inflation can kill you. Seriously. Always include a realistic inflation figure while making your financial plans. Its always safe to be on the higher side.

Lesson 8

High returns expectation can also kill you. And that is because you will start making buy/sell decisions in line with your expectations. Always keep reasonable returns expectations and accordingly, have your financial plans. Its always safe to be on the lower side.

Lesson 9

Have an asset allocation plan and follow it religiously. And unless the valuations become extremely compelling (like PE<14), keep 20% in debt.

Lesson 10

Any money which is not required for next 10 years or more, should be invested in well diversified equity or balanced fund. Remember this as this is very important.

Lesson 11

Any money which is required within next 5 years should be invested in debt instruments. If you have money which you need in next 5 years, please switch from equity to debt instruments as soon as possible.

Lesson 12

Always be ready to face short term notional losses. And remember that your returns could be Zero or Negative, even after 5 years (Remember 2009-2014). But over a period of more than 10 years, the general trend is Up. But even this is not guaranteed.

Lesson 13
Be happy and always welcome a market crash in the early stages of your investment journey. It will boost your return significantly in the long run.

Lesson 14

Invest some money whenever there is negative news all around and during panic selling to boost return.

Lesson 15

Always keep track of market valuations & your asset allocation. Set your own rules for asset allocation that suits you.

Lesson 16

Review performance of the mutual funds in your portfolio on an annual basis. And replace the under-performers after thorough analysis. Never replace a fund if it underperforms the benchmark for a quarter or two. You need more time (2+ years) to know whether its a good idea to move out of a fund or not.

Lesson 17

Avoid churning your funds frequently as it will not help you, but your broker or RM. And always choose funds with reasonable fees and direct plans.

Lesson 18

For choosing Mutual Fund schemes, always stick to reputed process oriented fund houses and evaluate funds based on all parameters.

Lesson 19

Watch business channels. But only for entertainment. Most advise being given, is for short term and not for you. Market experts are paid by channels for their opinions. Don’t invest your money to test their opinions. 🙂

Lesson 20

Don’t invest because your friend or relative is investing. Your risk and expectations will almost always be different.

Lesson 21

Mutual Funds are the best investment vehicle for retail investors. Only effort required is to choose a few good funds and invest in them regularly.

Lesson 22

Direct equity investing requires a lot of additional efforts. And these range from evaluating a company to regularly tracking it to finally, exiting it.

Lesson 23

In Mutual Funds, always invest in Growth options. If you require money, you can always withdraw. No point going for the Dividend option.

Lesson 24

Do not panic during bad times / bad news. And don’t get too excited in bull markets. Always stay calm.

Lesson 25

Make it a point to have adequate Term Insurance cover, from an early age. Also make it a point to have proper health cover and emergency fund to suit your needs.

Another Three Interesting Lessons (But With Proof This Time)…

Going forward, lets have a look at 3 (or rather 4) interesting lessons which I will try to make you understand using proofs:


The following article was published in May 2006, in a online business news website:

This shows that the first hint of a coming market crash was published on 15th May 2006. But as highlighted above, the expert opinion was that there was ‘Nothing To Worry.’

A few days later, the markets crashed as depicted in the next image:

So what does it prove?

It only proves that there is no one who can predict what is going to happen in markets with 100% accuracy. So don’t waste your time in listening to these so called market experts who claim to have the power to predicts the market movements.

A good mutual fund scheme named HDFC Equity’s NAV fell from Rs 134 on 1st May 2006 to Rs 112 on 1st June 2006. A big fall at that time. But today, no one even remembers the crash in the long term chart. The NAV of the fund is more than Rs 480. In January 2005, it was just Rs 67. NAV today has multiplied almost 7.5 times.

There will be sudden market crashes in future as well. And fund NAVs will go down. And down to almost any level. Accept this fact and move on.

Lesson :2

Below is a broad compilation of the BIGGEST falls in the Indian stock market history (upto 2008)

October 24, 2008: Sensex falls 1070 points (10.96%)

March 17, 2008: Sensex falls 951 points.

March 3, 2008: Sensex falls 901 points.

January 21, 2008: Sensex falls 1408 points.

January 22, 2008: Sensex falls 875 points after intra-day fall of 2273 points.

February 11, 2008: Sensex falls 834 points

May 18, 2006: Sensex falls 826 points.

December 17, 2007
:  Sensex falls 769 points.

October 10, 2008: Sensex falls 801 points.

October 18, 2007: Sensex falls 717 points.

January 18, 2008: Sensex falls 687 points.

November 21, 2007: Sensex falls 678 points.

August 16, 2007: Sensex falls 643 points.

April 2, 2007: Sensex falls 617 points.

August 1, 2007: Sensex falls 615 points.

So…do you remember all these dates and falls today? And can you make out those big crashes in the NAV chart of a good well-diversified mutual fund like HDFC Equity fund?

Its tough I would say…

Over the long term, the graph generally tends to move up. It is the only prediction, of which one can be a little certain of…. 🙂

Lesson: 3

Index value on 1st Jan 2008 was 6144 – A peak value for the index at that point of time. At the same time, NAV of HDFC Equity fund was 224.

Lets fast forward to end of 2010…

Index value on 1st Oct 2010 was 6143 and NAV of HDFC Equity fund was 300.

So…after all the corrections in between 2008-2010, the markets recovered back to the same peak index level nearly after 2 years and 10 months. And even if you had invested at the peak valuations (of index) in HDFC Equity fund in Jan 2008 in lump sum mode, the fund would still have provided you with Rs 76 (300-224) gain per unit – and that is when index did not move anywhere at all.

So what does it prove?

It generally pays to stay invested in a good quality, actively managed equity fund.

Lesson: 4

Index value on 1st Oct 2010 was 6143. And NAV of HDFC Equity fund was 300. After all the corrections the market recovered back to the same peak index level nearly after 2 years 10 months.

Now after more than 3 years…

Index value on 1st Jan 2014  was 6301 and NAV of HDFC Equity fund was 304. Again after corrections, the market recovered back to the same peak index level after nearly 3 years and 2 months.

So after 4 years, the Index was up by 2.5% and NAV of the fund also gave similar returns of around 1%

So what does it prove?

Lesson 3 above was proven wrong. 🙂 Always remember, not all rules are applicable and proven, at all times.

Notes and Disclaimers:

  1. The above post and Part 1 of the same post-series should not be considered as any sort of recommendation or investment advise.
  2. These posts are not to be considered as advise to invest in HDFC Funds or any other funds named in both parts of these posts.
  3. HDFC equity fund was one of the core fund of my portfolio along with several other funds. However for simplicity of the post, all investments have been shown as invested in HDFC Equity. There were some funds performing better than HDFC Equity in my portfolio and some were lagging the performance also. The fund in general was used as an example.
  4. I thank Dev for guiding and encouraging me to write a post on Stable Investor.

Reader’s Story: How I Created a Corpus of Rs 3.7 Crores in 10 Years!! – Part 1

Note: This post has been written by Ajay Sreenivasan – a regular reader of Stable Investor. I have been interacting regularly with him after we got in touch regarding my SIP Case Study last month. Ajay made many useful suggestions, which I eventually used for the last part of the interesting analysis. In our email conversations, it became clear that he had a vast experience in Mutual Fund investing. So I requested him to share his experiences and learnings with all the readers of Stable Investor. And he gladly accepted the offer. 🙂
The first part of this story is about his actual experiences over the last 10 years. The second part of the series will be more about the learnings which can be used as guidelines by other mutual fund investors.
So over to Ajay, who shares his experience of mutual fund investing below:
Till 2004, I was of the opinion that stock market investing was not for ordinary people. And that the terms like ‘Saving’ and ‘Investing’ generally referred to depositing money in bank deposits. And this opinion is probably formed because I come from a middle class family and none of my family members have ever had to do anything with the stock markets. 
Also a few other people, whom we knew and who invested in stocks, were the ones who lost quite a lot of money in markets. This again kept me away from the markets.
All I knew was that bank deposits, postal deposits, chit funds and LIC were for Savings; and if there was a need to make an ‘investment’, I could buy land if I had sufficient money.
So this is my story…
I became a NRI in 1995 as I had come to Gulf for employment. In 1997, I bought a plot of land (because someone told me to buy it). Later on in 2001, I constructed a house for self-occupancy as my family wanted a place which we could call as a home. And luckily for me, the good part was that buying of plot as well as construction of house was all done with personal savings, without any loans or debt. 
I was lucky that I built my house much before the crazy real estate boom began. And I have no hesitation in saying that it was purely because of my need and partially because of luck that I was ahead of the boom.
In 1998, an American Insurance company agent promptly approached and duped me. He convinced me about how I should save for my future and almost forced me to buy a US Dollar endowment policy – it hardly gave 0% return, yes 0% after 10years of regular annual payment. And I realized this only after 2006. But once this realization occurred to me, I promptly chose to convert it into a term plan for next 10 years as there was an option to do it.
In 2003, when my first child was born, I promptly called a life insurance agent in Gulf and took a Child Marriage and Education policy. In this policy, I had to invest on a yearly basis for next 18 years. It was a US Dollar denominated LIC endowment policy – it hardly gave 2% bonus every year despite paying regular annual premium. My reason for buying this policy was to be a responsible father, who was saving for his child’s future. But to be honest, I was doing it without having any knowledge about what long term investment was all about, and more importantly, without having any set target in mind.
In 2003, banks deposit rates started coming down and dollar started becoming stronger. I felt that it was better to keep money in dollars, even if it fetches a lower rate. And that is because it will get compensated by the exchange rate – due to rupee depreciation over the holding period. With this thought in mind, I again bought a single payment US Dollar denominated endowment life insurance policy for a 5 year term. I was treating it more like a US Dollar fixed deposit. 🙂 Unfortunately, the returns were less than 4% per year as I did not get the exchange rate benefit. And reason for it was that even after 5 years, Dollar-INR rate remained more or less at same levels.
By 2003, I was in a good-to-be situation, where I was saving a considerable amount of cash. And more importantly, I was free from any kind of loans. At this juncture, I got fooled once again. A LIC agent in India fooled me into buying a so-called good a policy named Jeevan Anand. To cut the long story short, the policy is hardly earning 5% despite paying annual premiums regularly for last 10+ years. A good policy indeed!!
By 2003, stock markets had started gaining momentum and IPOs were all rage. Personally, I didn’t know anything about IPOs at all. All I was hearing on news channels and from friends, who had invested in IPOs, was that it was a way of making easy money….and that too quickly. Being attracted to the glamour of quick money, I approached a broker and promptly opened a demat/trading account. And I did this without even knowing what exactly a share was and how it worked, etc. The broker, being as helpful as an angel, promptly helped me apply for various IPOs. Luckily for me, I somehow got invested only in good, established companies without even knowing anything about them. Some of these were TCS, ONGC, PETLNG, etc. But without knowing the real potential of these companies, I sold them whenever I made a small profit.
Since I dealt a lot with my broker for IPO investing, these guys started recommending mutual funds to me too. They recommended many NFOs and sector funds to me. Not because these were good for me, but because these paid higher commissions to them. And they always recommended me to chose the dividend option, so that I could get back some of the money back in my hand. But as far as I understand now, the real reason for this was to give me a feeling that I was making money. And this in turn helped them, to easily convince me to re-invest with them in other NFOs and funds that they recommended. I became a cyclical commission-making machine for them. But I had no clue about it. All I knew was that I bought a fund and the fund was giving dividends. Broadly speaking, I had full faith on what my broker wanted me to do.
By 2005, I got more accustomed to the concepts of money management and mutual funds. I even started tracking my funds’ annualized returns on a 5 year basis. And at that time, it showed a healthy (rather, very healthy) 25% per year. At that time, my total investment in mutual funds was hardly anything to say about. Mostly, I was churning the funds as per my broker’s recommendations (which benefitted him the most).

With the kind of returns my fund’s portfolio was showing, and the dividend I was getting from these funds, I came to the conclusion that, making money in stock markets was very easy. Even at this juncture, I was completely unaware of the Dotcom crash or the No-Return periods after 1995 or the Asian crisis of 1998
The 5 years annualized return of mutual funds looked good, only because of the 2003-2004 Bull Run. However, because of my excitement at seeing the profits and because I was getting dividends, I had already invested close to Rs 3 Lacs in mutual funds.
As the bull market progressed through 2004-2005, and pulled many novices into the market, I started investing in secondary markets too. But it was purely based on business channel tips & newspaper recommendations. In my quest of making some quick money, I started putting money in companies that I had not even heard off!! You can imagine the risks I was taking when I tell you that I invested in shares of companies like GTC, Manugraph, Betala, Nocil, Kohinoor…only God knows what these companies did…

I simply thought that all stocks will make money for me. 

How foolish of me?

But due to losses in these unknown companies (although small), I realized that I should only buy shares of large companies. But I still didn’t know which stocks to buy and why to buy them. It was still very random for me, even though I was ready to hold for the long term. And the money I made in TCS, ONGC and ICICI gave me this foolish confidence, that I could not lose money if I stick with large caps.
It was during this time that I fortunately came across a financial guide on investing from PersonalFn. And as far as I am concerned, it was the turning point of my investment journey…or in fact, it was the starting point. I was not a voracious book reader (although I read a lot of blogs, articles and newspapers)…..however, this guide had me interested. And that was because it was short and simple, and more importantly, it spoke about all the foolish things I was doing in my investments. At that time, this guide was like Benjamin Graham’s Intelligent Investor to me. It taught me a lot about goal-based investing and how to use a range of mutual funds and direct stock investments to achieve my goals. Honestly, it was like a god sent material for me. 🙂

I realized that despite working for more than 15 years (with 10 spent in Gulf), and also being a good saver, I did not have any plan for the future and was goal-less. All I was doing was to buy some insurance products and some random Mutual Fund and stocks. 

I approached PersonalFN to prepare a financial plan and got in touch with a very capable and honest financial planner. During the planning part, I set my goals and the financial plan was ready for investment in line with my risk appetite and the asset allocation.

To cut the long story short, I set a goal of Rs 3 Crores by 2025 for retirement corpus and Rs 1 Crore by 2021 for my child’s education and marriage.

A monthly SIP target of Rs 60,000 was worked out for me. This amount had to be invested in Mutual Funds for my future goals. Though it’s true that 
I missed out on a good part of my younger age before I started proper investing, I would say that I was still lucky enough not to have any loans at that time when I eventually did start.
By April 2006, I consolidated all my existing funds to the chosen fund as per my financial plan and started SIP investing for the 1st time in a disciplined manner. I decided that no matter what happens, I will invest at least Rs 60,000 every month towards my goals. And I also intended to invest more to cover up for the lost time of 15 years. 
Just after a month (in May 2006), there was a significant fall in markets (it had something to do with the commodity price collapse on LME). And by June 2006, about 20% of my portfolio (Rs 1.1 Lacs from Rs 6.9 Lacs) had disappeared due to this market correction. But I told myself that I had to stick to my plans no matter what. Markets eventually recovered and went on to make some good gains over the next 6 months. By December 2006, my portfolio was sitting at 50% point-to-point return.(See entries for 1-Dec-2006 in the Table 1 below)

My investments in mutual funds continued from 2006 to 2008 and I remained loyal to my 60K SIP. Rest of the surplus money went into Fixed Deposits, Liquid Funds and Insurance premiums. I thus built the debt side of the portfolio too. But still I did not bother much about my asset allocation at that point of time.
While I could sense and for that matter, actually see the euphoria building up around me in November 2007, I didn’t do anything. The media propelled euphoria went over the roof around November 2007 as there was a general consensus that GDP will grow at 9+ percent for many years to come. I simply continued with my SIP. At one point, I even doubled my SIP investments as I got a substantial raise in my income. And this I did without any regard to market valuations at that time.
By Jan 2008, my portfolio had peaked with a point-to-point return (since 2006) of 79.27% (See entries for 1-Jan-2008 in Table 1).
An investment of 17 Lacs had turned into Rs 31 Lacs in just 18+ months. No one was bothered about market valuations and almost all market analysts were publishing much higher targets, and justifying them with the now (in)famous theory of disconnect between Indian economy and global market. At this point, Nifty PE Ratio was 27.64. But I only came to know about this in 2010.
And then came the Crash of 2008. Uptil then, I had never seen my portfolio getting slaughtered in a big way. After the crash, the markets started drifting downwards. By July 2008, while my investments went up from Rs 17 Lacs to Rs 29 Lacs (due to my increased SIP and additional purchase – seeing the market fall), the actual profits of my portfolio were completely wiped out and became negative for the first time (see the return figures of 01-July-2008).
Yes…from almost double (of my actual investments) in January 2008, the returns turned negative within just 6 months!! That is how ruthless the markets can be.
Actually in July 2008, the markets came to a reasonable level where Nifty PE was around 16.6. The media also started recommending that this steep correction presented one of the best opportunities that an investor can get (since 2004). I too decided to increase my SIP between April 2008 and August 2008. And I did this by breaking some of the fixed deposits. I also invested some additional money through direct stock investing. Frankly what I was doing was to average out my investments which had run into steep losses. Or you can say that I was trying to catch the falling knife. But as the knife continued to fall, I increased the additional purchases (See additional BUY transactions between August 2008 and March 2009).

By December 2008, the valuations had gone into a deep negative territory – a point to point return of (-) 28%, i.e. a steep loss of Rs 12.7 Lacs on a Rs 45 Lacs investment.  There was panic all around. And it was like there was no end to bad news – Dubai default, Sub Prime Crisis, UPA may not come back to power and no stability after upcoming elections etc.
By March 2009, investment showed a point to point return of (-) 28%, a Rs 52.5Lacs investment had become Rs 37.7 Lacs. And Nifty PE ratio had touched a once-in-a-lifetime low of PE 12.
The crash in the period of August 2008 to March 2009 made me read several prominent articles, blogs and most importantly, Benjamin Graham’s Intelligent Investor. Frankly, it was only then that I started understanding market valuations and the importance of asset allocation. It was here that I decided to consolidate all my investments to evaluate my asset allocation…and to bring it down to a comfortable equity and debt level.
For the first time in my life, I evaluated my complete portfolio of Fixed Deposits, Debt Funds, Equity Funds and individual stocks as one entity.
And based on my readings, I set following rules for myself:
Rule 1: Save as much money as possible for the purpose of investing.
Rule 2: Before investing (every time), look at your asset allocation and in general, market’s PE valuations.
Rule 3: Continue investing via SIP as per the original plan. Do not stop SIP midway for any reason till target investment value (not the target corpus value) is reached.
Rule 4: Broadly keep the asset allocation between 60% – 80% in favor of equity – for PE Ratio range of 18-24. And continue investing in SIPs as per investment plan.
Rule 5: If markets fall below 18PE, increase SIPs.
Rule 6: If markets fall further below 16PE, increase buyout, and
Rule 7: If markets fall below 14PE, invest maximum amount in equity in lumpsum.
Rule 8: If market crosses above 23PE, restrict investment amount in Equity.
Rule 9: Above 25PE, reset equity allocation to something in between 65% – 75%,
Rule 10: Above 27PE, do not invest further and reset the asset allocation to below 65%
Important Note: Equity allocation includes mutual funds and direct stock investments.
In my case, I didn’t sell any of the fund holdings till December 2014. But I did sell my direct equity holdings and invested additional money in debt portion (including gold) to manage my asset allocation.
It is very important to decide the investment period of the money being invested. If you don’t require the money for next 10 years, then it must go to equity mutual funds only (preferably via STP transfer from liquid funds). But if investment period is for less than 3 years, then it should be invested in debt.
Money required for other periods, i.e. between 3 and 10 years can be shuffled between equity and debt as per asset allocation.
So let’s go back to my story…
By May 2009, the election results were out and UPA 2 was forming the government. Markets took the news positively and the portfolio turned neutral i.e. 0% returns after 3 years of accelerated SIP investment. And within a month, i.e. by June 2009, it turned positive.
By this time, I went through a lot of dilemma about whether, what I was doing was correct or not. Honestly speaking, at times my portfolio looked scary to me and even disturbed my sleep. Almost all my friends were investing in real estate using cash and loans and enjoying rents & capital appreciation. As for me, I had almost ZERO returns to show after 3 years of investing. Even my family was not sure whether what I was doing was the right thing to do or not. After all I was going so aggressively with fund based investing, without any regard for what others were doing, i.e. investing in real estate.
And apart from the pain of 0% return of MF portfolio, there was added pain of direct stock portfolio being deep in red. This put further pressure on me. My thought process here was that after so many years of negative returns, even after investing in SIP mode and market touching all time low valuation levels, there is bound to be a point, where I will get decent returns. And backed by this thought and my understanding gained from reading various investment books, I decided to increase my SIP investment – but only using the money which would not be needed for next 10 years.
In any case, my original plan was to invest Rs 60,000 every month for 20 years to achieve my goals. This would amount to Rs 1.44 Crores (Rs 60,000 per month x 12 months x 20 years). By increasing my SIP now, I was only putting the money ahead of its planned schedule.
By Jan 2010, the market PE valuations touched 23. I brought down the equity asset allocation to 63% (see table) as the market at that point was nearly 100% up from March 2009 valuations.
As I had anticipated, markets did correct but recovered immediately. Throughout 2010, the market PE stayed above 21 and therefore I continued with my regular SIPs.
In October 2010, the market once again peaked out at 25PE. Yet, I continued with regular SIP and adjusted the asset allocation by investing equally in debt and also by selling the direct stocks. I had started looking at my whole portfolio in its entirety. So the bad quality stocks, which I held were sold….even if it meant that I had to sell them at a loss (for the sake of asset allocation).
Although, the market PE remained at 20+ till July 2011, the index itself corrected from 6200 to 5000 by September 2011. Witnessing this correction, I increased the additional purchases in this period and equity allocation touched almost 80% plus. Another reason for increasing the allocation was the availability of cheap USD-denominated loans in 2011 to invest in mutual funds. As of today, it seems to have turned out to be very successfully. The loans were paid off in 3 years from salary and the investment amount has nearly doubled.
As 2012 came, the valuations started moderating and PE came down to average levels of around 18 (probably this was due to lots of negative news about government, fiscal deficit, currency collapse, gold restrictions, high oil prices, etc). By this time, I had already become familiar with the volatility and bad news. Here, I decided to keep adding to my MF folio with an investment target of Rs 1.44 crores (and not the total end of 20 year target of Rs 4 crores). The Idea was that once I invest Rs 1.44 Crores, I could always give sufficient time to the markets to achieve my target. And I started increasing the investments whenever the PE came below 18. But I ensured that equity portion in portfolio did not exceed 85%.
As 2013 came, valuations stayed below 18PE and the gains were getting wiped off once again.  I was consciously raising the investments in MF and also allocating sufficient funds in debt side. By September 2013, the portfolio gains were nearly wiped off (just a point to point return of 28% was left out with just Rs 42 Lacs profit on a Rs 1.4 crore investment). It seemed that even after investing aggressively for 8+ years, there was no fruitful result. But this time, I got even bolder than ever and decided that even if markets were to correct 20% from here, the PE would only fall 20% from lows of 16 at that time. So downside was almost limited and upside was not. So I decided to continue doing my monthly SIP from there on.
Fortunately, BJP started winning state elections and the sentiment started to change from November 2013 onwards. And rising markets have started helping my portfolio too. By this time, my targeted investment of Rs 1.44 Crore has already been done. Yet I am continuing my minimum SIP investment of Rs 60K. From December 2013 onwards, the additional amounts were invested in the debt folio to increase the debt allocation and thereby bring down the equity allocation from 70% to 58%.
As of Dec 2014, the fund has reached a target of Rs 3.92 Crores versus the original target of Rs 4 crores. I still have another 6 years left to take this corpus out. Therefore except in case of nifty valuations going haywire, I don’t intend to take my profits out anytime soon. I expect this amount to become at least Rs 7-8 Crore by 2021 and serve my goals. Although my original goal was 4 crore, with increase in monthly expenses (retirement corpus), children education and marriage expenses, I may require around Rs 8 Crore. I expect the same to be comfortably met from the current mutual fund folio investment.
As of 1st Jan 2015, the returns on mutual fund portfolio stand at 19.80% per annum. A snapshot view from a portfolio manager tool is posted below:
The above summarize my investment journey till date.

If you want to have a look at the detailed transaction history over a 10 year period, please click on the image below:

The second part of the series will cover the learnings which can be used as bulleted list of guidelines by other mutual fund investors.

In 2 Minutes, I Can Tell You When You Will Retire!!

Read the title of this post again.This post will not help you to retire in 2 minutes. But in less than 2 minutes, it will tell you how long will it take for you to retire. And that too without having to make any big and complex calculations.

And you can do it yourself!

But for you to do it, you need to be familiar with TheRule of 72

What is Rule of 72?

Rule of 72 is nothing but a financial shortcut to calculate the number of years required to double your money.
How TO Double Your Money Rule Of 72
Rule of 72 | Calculate Time Required To Double Your Money

For example, if you want to know how long will it take to double your money at 12% interest, divide 72 by 12. The result is 6. And this 6 is the number of years required to double your money. It is as simple as that.

Lets take another example: At 8% interest, which is the average rate offered by banks for keeping your money in recurring deposits and fixed deposits, your money would double in 9 years. (How:  72 / 8 = 9 Years)

Note – This rule is applicable only for compound interests and not simple interests. Also it works better for smaller numbers.

Lets go further..

How to Use This Rule of 72 for Retirement-Years Calculation?

Please note that this post does not tell you about the amount required for your retirement. But this neat little number trick will tell you the (approximate) number of years required to reach that amount.

Let us suppose that you need Rs 2 crore as your retirement corpus. And as on date, you have a saving of Rs 6.25 lacs.

Note – I have chosen this strange figure of 6.25 to make further calculations easy.

The assumption here is that you are a rational human being, who doesn’t want to take too many risks with his retirement kitty. And neither do you want to earn comparatively lower returns offered by bank deposits.

So you decide to take a middle path of 10%.

This is higher than 8% offered by National Savings Certificates and bank deposits and and lower than 12% plus offered by inherently risky stock markets.

Now lets back calculate…i.e., starting from the final retirement requirement of Rs 2 Crore.

Mathematically, 72 divided by 10 is 7.20

Now if we get 10% per year for our investments, it will take 7.2 years to double our money. (Using Rule of 72, we know that 72 divided by 10 equals 7.2 years)

Now to double your money from an amount X to Rs 2 Crore, it will require the amount X to be 1 Crore. And using the Rule of 72, we have that Rs 1 Cr doubles to Rs 2 Cr in 7.2 years, i.e

1 Cr to 2 Cr = 7.2 years


50 Lacs to 1 Cr = 7.2 years (Total: 14.4 years)

And so on..

And the calculation continues as follows:


Money Double Rule Of 72

This simply means that starting from Rs 6.25 Lacs, it will take you 36 years to convert it into Rs 2 Cr, which is the target amount.

But wait…

I know you must be thinking that 36 years is too long for anyone to keep saving. But here is the magic. Did you notice that you started from Rs 6.25 Lacs? And you ended being a Crorepati, twice over.

But you did not put in any new money in these 36 years!!

Yes. You need to understand that it takes 36 years to convert Rs 6.25 Lacs to Rs 2 Crore without any additional investment and without doing anything in stock markets. 🙂

That is the power of starting early, when it comes to investing.

The above example is a very simple and basic usage of this Rule of 72.

So in case you decide to make additional investments every year, you can reach the target of Rs 2 Cr much earlier than 36 years.

For example, if you additionally invest Rs 1 Lac every year, then you can reach the goal by 27th Year.

And if you somehow manage to save Rs 2 Lac every year, then you can reach your goal in less than 23 years!!

Try doing 3 Lacs an year and you will retire in less than 20 years. Doing 3 lacs an year means doing 25,000 every month. And if you earn decently, then saving this amount every month towards your retirement should not be very tough.

Warning: This exercise to calculate these numbers for your own retirement can be a scary one. But it clearly illustrates that if you decide that instead of going for one time investment, you are ready to contribute regularly to your retirement fund, then you can drastically reduce the time required to reach your retirement target amount.

So how much are you targeting to save for your retirement? And how much time will it take?

How To Become A Crorepati – The Ultimate Guide

Crore. One followed by 7 zeros. There is something about this word which puts a person in an altogether different orbit. It does not matter whether a person has a crore rupees or not. The word is magical. If a person does not have a crore, he aspires to be a Crorepati. If he has it, he wants to remain a Crorepati.
So ladies and gentlemen, boys and girls…
Please welcome the commonest of words, which we regularly come across when discussing rich people. A Crorepati.
It has been proven by psychologists that a person having 99 lacs does not feel as rich as a person having 1 crore (=100 Lac) 🙂
So assuming that you know the importance of being a Crorepati, let’s go back to our original question.
How To Become A Crorepati?
Now there are easy ways and there are tough ones. First lets list own the easy ones –
  • Win a Lottery
  • Marry a Rich Girl
  • Inherit from your rich aunt
  • Get lucky with your stock market predictions
  • Become the ‘Perfect’ Market Timer
  • Join Politics
  • Become a Criminal
  • Start with 2 crores ;p (It is far easier to lose money and come back to 1 crore)
Now lets see the tough ones…
John D Rockefeller once said – “I have ways of making money that you know nothing.” By the way, if you don’t know this guy, then you are seriously missing out on someone really important in world’s business history. He was the richest man ever. Worth more than 650 Billion Dollars (in today’s terms). That’s more than 10 times of what Bill Gates and Warren Buffett were ever worth. Do read about him here.
So when he said that he knew things about making money which we know nothing off, according to experts, he was referring to dividends and more importantly to the concept of compounding (read more here).
So can you become a Crorepati if you are not lucky, criminal, politician or an-already-rich guy?
I say you can. But its not easy. It is tough. It will take time. And more importantly, it might not be worth the efforts. Because, life is not just about accumulating money. But if you intend to be rich the hard way, here it is…
You would be required to invest (& not just save) every month for years. And depending upon your monthly contributions and expected rate of return, it can range from anywhere between 8 years to more than 22 years.
As far as the expected rate of returns are concerned, I have chosen 8% (Given by Recurring Deposits, Fixed Deposits, National Savings Certificates); 12% (Given by Index Funds, Good Mutual Funds); 15% (Given by ‘Very’ Good Mutual Funds over the long term). For monthly investments, one can go ahead with systematic investment plans (SIPs)offered by various mutual fund houses.
I did some number crunching and results are given below –
How to become crorepati
How to become crorepati
  • Assuming 8% returns (per annum), if you invest Rs 15,000 every month for next 22 years, you would reach your target of 1 crore. At 12% & 15% returns, it would be achieved in 18 and 15 years respectively.
  • Similarly, for monthly investment of Rs 30,000, years required are 15, 13 & 12 at returns of 8%, 12% & 15% p.a. respectively.
  • For Rs 50,000 per month, a crore can be achieved in 11, 10 & 9 years.
The graphs are more or less self explanatory. But the most important component of this calculation is the expected rate of return. I have taken 8%, 12% and 15%. You should understand that higher your expected rate of return, higher are the risks associated with instruments providing such rates. Please read the previous sentence once more for impact and to understand its importance. 🙂
But aren’t we forgetting something?
Have we taken care of everything?
No. We are forgetting something very important.
We have not taken inflation and erosion of value of money which it brings about.
One crore today is not worth one crore after 15 years.
So if we assume an average inflation of 7% over the next few years, today’s One crore would have following values after given number of years:
10 years- Rs.51 Lacs
15 years- Rs.36 Lacs
20 years- Rs.26 Lacs
25 years- Rs.18 Lacs
Never forget inflation. Never! It has a bad habit of disrupting the long term financial planning. And earlier you start your efforts to become a Crorepati, higher are your chances of becoming one.
And to help you with your calculations, here are a few tables which let you easily calculate the time / monthly contributions required to become a Crorepati. Click on the thumbnails to get the higher resolution images.
Calculation Table for 8% Returns
Calculation Table for 12% Returns
Calculation Table for 15% Returns
So since now you know quite a lot about becoming a Crorepati, what are you waiting for? Go out there and become one!!!