I am a great admirer of Vermaji. He has mastered the art of making money... in a simple, risk-free and the most effective manner.
The best part is that Vermaji is no financial genius. He is neither Warren Buffett nor Rakesh Jhunjhunwala. He is one among the countless aam investors, who in my opinion needlessly struggle making money on their investments.
First, let us see what Vermaji has been doing for the last 15-20 years.
In Jan 1994, Vermaji started a Systematic Investment Plan (SIP) of Rs.1000 every month in Franklin India Prima Fund. He continued with the same for 10 years till Dec 2003 — patiently and persistently — without any break and without ever looking at the markets. At the end of 2003, his investment of Rs.1.20 lakhs was valued at Rs.5.34 lakhs. A stupendous return of 28.51% p.a.!
In Jan 1995, he started another SIP of Rs.1000 in HDFC Equity Fund. Again, he stuck to it for 10 years till Dec 2004. Result? His investment of Rs.1.20 lakhs fetched him Rs.6.14 lakhs in Jan 2005 i.e. a superb yield of 31.10% p.a.!
In Jan 1996, he repeated the above strategy with Reliance Growth Fund and netted Rs.10.33 lakhs after 10 years in Jan 2006. A mind-boggling income of 40.94% p.a.!
[Also read: Become a crorepati - safely and surely - with...]
In Jan 1997, he added Birla Sunlife Advantage Fund to his SIP portfolio and collected Rs.6.20 lakhs 10 years later in Jan 2007 @31.26% p.a.!
In Jan 1998, SBI Magnum Global Fund made an entry into Vermaji's porfolio. In Jan 2008 he took home Rs.9.88 lakhs at an astounding @40.11 p.a. returns!
In Jan 1999, Vermaji's new SIP was Kotak 50 Fund, which gave him Rs.3.42 lakhs in Jan 2009 @20.15% p.a.!
Be patient! Even though it is the beginning of a new millennium, the story continues on the same old so-called "boring" pattern.
In Jan 2000, 10-year SIP in ICICI Prudential Tax Plan was included which fetched him Rs.5.70 lakhs in Jan 2010 @29.70% p.a.!
[Must read: I am fed up with equity. It has given 'nothing' in last 5 years.]
In Jan 2001, the SIP debutante was UTI Nifty Fund adding Rs.3.48 lakhs to Vermaji's kitty in Jan 2011 @20.48% p.a.!
In Jan 2002 and Jan 2003, Vermaji opted for DSPBR Opportunities Fund and Sundaram Select Midcap respectively for his 10-year SIPs. His collections in Jan 2012 and Jan 2013 amounted to Rs.3.49 lakhs (@20.51% p.a.) and Rs.4.18 lakhs (@23.88% p.a.).
Thus, Vermaji's investment of Rs.12 lakhs was worth an unbelievable Rs.58.16 lakhs.
As you can see Vermaji made excellent returns...
... in 10 different funds
... from 10 different mutual fund companies
... across 10 different years
Moral of the story...
... It DID NOT matter when Vermaji entered the markets i.e. no "timing" of his investments.
... It DID NOT matter which large and diversified fund Vermaji chose to start his SIP in.
One and only one thing made money for Vermaji... TIME.
There are many investors who, like Vermaji, begin right. Unfortunately, they don't end right. They get worried by the markets movements and quit early. They don't last for 10 years. If only they were as disciplined with their SIPs as they are with their insurance premiums and PPF deposits every year. Then there would be many more Vermajis in this world.
[Don't forget to read: Are you missing out on mind-boggling returns?]
Concluding, if you want to make "good" money from even "small" investments, all you have to do is to give TIME to your investments to grow. This is the simple secret behind Vermaji's big success.
Are you prepared to follow Mr. Verma's path to glorious profits?
The best part is that Vermaji is no financial genius. He is neither Warren Buffett nor Rakesh Jhunjhunwala. He is one among the countless aam investors, who in my opinion needlessly struggle making money on their investments.
First, let us see what Vermaji has been doing for the last 15-20 years.
In Jan 1994, Vermaji started a Systematic Investment Plan (SIP) of Rs.1000 every month in Franklin India Prima Fund. He continued with the same for 10 years till Dec 2003 — patiently and persistently — without any break and without ever looking at the markets. At the end of 2003, his investment of Rs.1.20 lakhs was valued at Rs.5.34 lakhs. A stupendous return of 28.51% p.a.!
In Jan 1995, he started another SIP of Rs.1000 in HDFC Equity Fund. Again, he stuck to it for 10 years till Dec 2004. Result? His investment of Rs.1.20 lakhs fetched him Rs.6.14 lakhs in Jan 2005 i.e. a superb yield of 31.10% p.a.!
In Jan 1996, he repeated the above strategy with Reliance Growth Fund and netted Rs.10.33 lakhs after 10 years in Jan 2006. A mind-boggling income of 40.94% p.a.!
[Also read: Become a crorepati - safely and surely - with...]
In Jan 1997, he added Birla Sunlife Advantage Fund to his SIP portfolio and collected Rs.6.20 lakhs 10 years later in Jan 2007 @31.26% p.a.!
In Jan 1998, SBI Magnum Global Fund made an entry into Vermaji's porfolio. In Jan 2008 he took home Rs.9.88 lakhs at an astounding @40.11 p.a. returns!
In Jan 1999, Vermaji's new SIP was Kotak 50 Fund, which gave him Rs.3.42 lakhs in Jan 2009 @20.15% p.a.!
Be patient! Even though it is the beginning of a new millennium, the story continues on the same old so-called "boring" pattern.
In Jan 2000, 10-year SIP in ICICI Prudential Tax Plan was included which fetched him Rs.5.70 lakhs in Jan 2010 @29.70% p.a.!
[Must read: I am fed up with equity. It has given 'nothing' in last 5 years.]
In Jan 2001, the SIP debutante was UTI Nifty Fund adding Rs.3.48 lakhs to Vermaji's kitty in Jan 2011 @20.48% p.a.!
In Jan 2002 and Jan 2003, Vermaji opted for DSPBR Opportunities Fund and Sundaram Select Midcap respectively for his 10-year SIPs. His collections in Jan 2012 and Jan 2013 amounted to Rs.3.49 lakhs (@20.51% p.a.) and Rs.4.18 lakhs (@23.88% p.a.).
Thus, Vermaji's investment of Rs.12 lakhs was worth an unbelievable Rs.58.16 lakhs.
As you can see Vermaji made excellent returns...
... in 10 different funds
... from 10 different mutual fund companies
... across 10 different years
Moral of the story...
... It DID NOT matter when Vermaji entered the markets i.e. no "timing" of his investments.
... It DID NOT matter which large and diversified fund Vermaji chose to start his SIP in.
One and only one thing made money for Vermaji... TIME.
There are many investors who, like Vermaji, begin right. Unfortunately, they don't end right. They get worried by the markets movements and quit early. They don't last for 10 years. If only they were as disciplined with their SIPs as they are with their insurance premiums and PPF deposits every year. Then there would be many more Vermajis in this world.
[Don't forget to read: Are you missing out on mind-boggling returns?]
Concluding, if you want to make "good" money from even "small" investments, all you have to do is to give TIME to your investments to grow. This is the simple secret behind Vermaji's big success.
Are you prepared to follow Mr. Verma's path to glorious profits?
