100 CR Wealth by Investing 1000 INR in SIP : Power of Compounding

How 1000INR SIP per month can generate 100cr wealth ? It look like distance dream, but believe me its possible and will going to show here how. 

Before we begin , lets start with small story :

Long back in time one wise man invented the chess and presented the game to his king. The King was so pleased that he asked the inventor to demand reward anything  the inventor desired.

The inventor’s answered  
“I am a simple man of few wants, he said. My needs are a few. Give me one grain of rice for the first square of the chessboard, two for the second, four for the third and so on. Each square having double the number of rice than the previous square. This is all I ask ,O generous king.”

The King and everyone present was laughing , the inventor could have asked diamonds , gold or land but he just asked for rice grain!! Than King than ordered his minister to give what the inventor have asked for. A week passed. Still no sign of the minister. He was asked to appear before the king immediately.Than minister explain “We are still trying to procure the required number of rice to fill the chessboard, Your majesty. We have collected all the rice of kingdom but still not enough to meet the requirement . ” 

The King was shocked when minister told that number of rice grain required is 18,446,744,073,709,551,615. This number is equal to  406763 million ton Rice . In 2017 India produced  111.01 million ton Rice.  
Albert Einstein once said “The power of compound interest the most powerful force in the universe.“

Our grandfathers know this , they used to save money in PPF like products which used  to grow at 12-13% compound Interest  that time and after 20-25 year, small amount turn out into huge wealth. Now this PPF has no longer good investment option as interest drop to 8% which is near to inflation rate.
So the best option available is the Mutual Fund SIP. Many Fund has past record of return more than 18% CAGR for long period of time.

Form that we have selected on of the Best fund which can give you 20%+ SIP return. Here we are recommending to start one small SIP of just 1000INR in our selected small cap mutual fund.Historically this fund has given 22% SIP return and we expecting it to give 20-22% growth further.The real thing is not in SIP amount , but SIP time frame.You can start SIP for your 5 year old kid and later in life the grown up kid can continue it further.Remember first few year is like ordinary time, you notice no gain, but later part compounding do its magic.

Lets look how 1000 SIP can create wealth of 100cr.

As you see in chart , real magic happened after 40 years in SIP.  First 10 year, your 1000 SIP grow to 3 lac , than next 10 year it become 26 lac. After 40 year , you got 10.57cr. And from 40 year to 53 year , it grow to 113cr. And crazy part is your total investment is just 6.36 lac in 53 year. Awesome !!

Once in press conference someone asked Warren Buffet, your investment method is simple so why other not able to copy it and become rich like you. Than Mr Buffett replies “Nobody want to become rich slowly.”  The power of compounding is simple to understand but hard to implement. Very Few can replicate this.

If you want to know the name of fund  for 100Cr wealth, you can contact us on +91 9033360239.
Be Smart. Invest Smartly.

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