How to Make ₹100 Crore Using Mutual Fund Investing

Achieving ₹100 crore might seem like a far-fetched dream, but it is entirely possible with the right mindset, strategy, and discipline. Raamdeo Agrawal, Chairman of Motilal Oswal Asset Management, outlines a few fundamental principles that can help you achieve this goal by leveraging the power of mutual fund investing.

Here’s how you can turn your financial dreams into reality:

1. Start Early and Stay Invested

Time is your most powerful ally when it comes to wealth creation. Starting your investment journey early, ideally in your 20s, gives your money ample time to grow exponentially.

Mutual funds, especially equity-oriented ones, are designed for long-term wealth creation. Staying invested and resisting the temptation to exit during market fluctuations ensures that you benefit from compounding. Remember, the longer you stay invested, the higher your returns.

2. Harness the Power of Compounding

Compounding works wonders when you give it time. Even small, regular investments can grow into substantial wealth if left to compound over decades.

For instance, if you consistently earn a 20% annual return, ₹1 lakh can grow to ₹100 crore in 50 years. SIPs (Systematic Investment Plans) are an excellent way to harness compounding while maintaining financial discipline.

The key is patience — allow your money to work for you over the long term.

3. Invest in Quality and Growth-Oriented Funds

Generating consistent returns of 20% or more requires investing in mutual funds that prioritize quality. These funds focus on companies that exhibit:

•Sustainable growth models

•Clean and ethical management

•A strong competitive edge

Avoid chasing short-term trends or speculative stocks. Instead, choose mutual funds that focus on long-term value creation by investing in top-quality businesses.

4. Focus on Value Over Price

Value investing emphasizes buying into businesses that are fundamentally strong but undervalued. A good mutual fund manager will seek out such opportunities, ensuring you are invested in companies that have significant growth potential.

Rather than fixating on short-term price movements, focus on the long-term value that a fund or business can deliver.

5. Stay the Course During Market Volatility

Market ups and downs are inevitable, but they should not shake your confidence in your investment strategy. Agrawal points out that only 3% of investors stay invested in mutual funds for the long term, while others exit prematurely, losing out on the power of compounding.

By maintaining a steady course and ignoring short-term noise, you allow your investments to reach their full potential.

6. Partner With the Right Fund Manager

The success of your investments also depends on the expertise of the fund manager. A skilled fund manager employs research-driven strategies to select high-quality stocks with strong growth potential.

Choose mutual funds with a proven track record and a disciplined investment approach to ensure your wealth-building journey stays on track.

Final Thoughts

Creating ₹100 crore through mutual fund investing isn’t a matter of luck—it’s a matter of strategy and discipline. Start early, stay invested, and focus on quality. As Raamdeo Agrawal says, “Great businesses and great management deliver great returns.”

By applying these principles, you can turn your ₹1 lakh investment into ₹100 crore over time. Remember, wealth creation is a marathon, not a sprint. Be patient, stay consistent, and let your investments work for you.