A SIP OF RS 5,000 HELPS TO BUILD A CORPUS OF RS 1 CRORE. CONSISTENCY BEATS EVERYTHING

A Reddit user in the mutual fund community shared about achieving a significant financial milestone of Rs 1 crore in investments. The user also shared that this journey began in 2018 with the first monthly investment (SIP) of Rs 5,000 when the individual's salary was Rs 20,000.

Now, the individual is investing close to Rs 1.8 lakh per month. The investor emphasizes the importance of consistency, behavior management learned through market cycles like the COVID-19 pandemic and recent bear trends, and focusing on increasing active income while sticking to a financial plan with proper asset allocation. The investor also highlights that not reacting to market news is often the best strategy for mutual fund investors.

Also Read | Planning to start SIP to buy a house in Bangalore? Experts offer help

The investor's journey wasn't always smooth as it took a lot of time to develop conviction in the market. Even during the initial phase of the COVID-19 pandemic, the investor was hesitant to increase their SIP, which was only Rs 10,000 - Rs 15,000 per month at the time.

The investor learned valuable lessons by experiencing different market phases, including the COVID-19 crash and subsequent recovery, as well as more recent market downturns. A key takeaway was to never stop any SIP investments, regardless of market conditions.

The Reddit user's portfolio value remained stagnant at around Rs 95 lakh between November 2024 and March 2025, despite continued SIP contributions. The investor jokingly attributes this stagnation to "Thanks to Trump!"

The investor also shared their investment strategy. They stopped investing directly in stocks because they couldn't outperform their mutual fund returns. The investor believes that if someone can beat mutual fund returns with individual stock picks, then stocks are the better option. However, for many, mutual funds offer a more efficient and less time-consuming way to invest.

The investor strongly believes that "Consistency beats everything!!". This highlights the power of disciplined investing over the long term. The user also advised that not reacting to the market news is the best reaction for a mutual fund investor. This suggests that it's better to avoid making impulsive decisions based on short-term market fluctuations and stick to a well-thought-out investment plan.

Also Read | Can a Rs 1 lakh monthly SIP buy you a Bangalore apartment in 10 years?

The investor encourages others to focus on increasing active income, creating a financial plan with clear financial goals and a proper asset allocation strategy. Asset allocation means dividing your investments among different asset classes, such as stocks, bonds, and real estate, to manage risk and return.

The user shared a message for other investors by saying that, "You will be surprised to see how far you have come in the coming years." This emphasizes the importance of patience and long-term perspective in investing.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)