July 7, 2025

Rs 1 crore in Mutual Funds by 33: One man’s journey that redefines ‘easy money’

In an age where everyone wants to “10x” return in a month, a viral Reddit post quietly landed with the title: “Finally achieved a Rs 1cr portfolio in mutual funds today.” No clickbait. No viral flair. Just a subdued, hard-earned triumph. But read closer and you’ll see this isn’t a story about money. It’s about systems. Psychology. Patience. And painful clarity. The Numbers Behind the Patience

Let’s start with the maths:

Start date: April 2021
Total invested: Rs 70 lakh
Current value: Rs 1 crore
XIRR: ~19%
Funds: One Nifty 50 index fund (20%), one flexi-cap (50%), one small-cap (30%)
Mode: 100% SIPs
Withdrawals: Only for tax harvesting
Holding period: Ongoing

And here’s what hits hardest: for the first two years, returns were flat—0% XIRR.

“For over 2 years (April 2021 to June 2023), my returns were basically 0%. It was extremely demotivating and I wondered if I made the wrong investment choices.”

This is where most investors break. But this one didn’t. And because he didn’t, he now holds a Rs 1 crore portfolio that is still compounding silently and strongly.

#1: Income is the engine, not frugality

“80% of your wealth depends on this alone.”

This line alone dismantles the over-glorification of budgeting apps and minimalist mantras. Frugality can help delay financial pain, but income growth is what ends it.

The author makes a point that’s hard to argue with, maybe even a little uncomfortable to hear. If you’re aiming for Rs 1 crore, trimming small expenses like coffee won’t get you there. It’s not the Rs 500 you save, but the Rs 5 lakh raise you negotiate that truly moves the needle.

And honestly, that rings true.

Most of us are told to cut costs, but rarely are we encouraged to build our ability to earn more. That’s the real driver. Saving is important, no doubt. But saving from a limited pie only takes you so far. Expanding the pie is where things start to shift.

Takeaway: You don’t become wealthy by skipping lattes. You get there by growing your income, and then giving that money a job through consistent, automated investing.

#2: Cutting expenses has diminishing returns

“My expenses were 10LPA when I used to earn 20LPA, and it’s around 12LPA today – which is quite lavish for a single male. If I try, I can reduce my expenses to 6LPA, but it won’t make much difference.”

Frugality can only take you so far. If you’re already spending within reason, the juice isn’t worth the squeeze. In this case, even slashing expenses from Rs 12LPA to Rs 6LPA wouldn’t dramatically shift his wealth trajectory.

Takeaway: Unless you’re living extravagantly, reducing expenses won’t move the needle much after a point. Focus your energy where the leverage is, income and investing behaviour.

#3: SIPs test your soul before they build your wealth

“Discipline in SIP is a must. It’s brutal when you see the portfolio sitting at 0% XIRR after two whole years.”

Here’s what no mutual fund ad tells you: SIPs are emotionally brutal in sideways markets. Watching monthly debits stack up while your portfolio stagnates can feel like running on a treadmill with bricks in your shoes.

But staying the course is what turns inertia into compounding. His story proves this: Years 3 and 4 were the payoff. He didn’t change funds, didn’t pause SIPs, didn’t chase momentum. And that is rare.

“I almost started to think that I should put all my money in direct stocks instead of relying on fund managers. But in hindsight, it would’ve been stupid, as I don’t have time to keep track of markets regularly. Today, my direct stock XIRR is 14%, whereas the MF portfolio is 19%.”

Takeaway: SIPs are a kind of slow start in the beginning. You won’t see their impact at first. But one day, you will. When that happens, you’ll appreciate your past self for not giving up.

#4: The best portfolios are the ones you forget

“I check in on it once a quarter. Let the SIPs do the work.”

No doomscrolling through market news. No impulsive reshuffling. Just one quarterly glance to ensure everything’s ticking.

It’s an underrated skill to emotionally detach from your investments without becoming negligent. Most underperformers either micromanage or ignore portfolios entirely. He found the middle ground.

Takeaway: If you need to track your portfolio every day, it’s too aggressive, or you’re too anxious. Set, forget, and review. That’s the kind of quiet consistency that, over time, snowballs into extraordinary outcomes.

#5: DIY research doesn’t beat institutional access

“More effort doesn’t equate to better results.”

He built DCF models. He analysed balance sheets. He selected stocks meticulously.

Still, his mutual funds delivered a 19% XIRR, while his stock picks managed 14%.

Why? Because fund managers have management access, better data, and less emotion. Retail investors are constantly tempted by headlines and FOMO. Professionals aren’t.

Takeaway: You can be informed and still lose to someone who is structured. The deeper the market, the harder it is to beat full-time professionals while juggling your day job.

#6: Market timing is a distraction, not a strategy

“And finally, don’t try to time the market. This brings unnecessary complexity, and probably doesn’t add too much value anyway.”

This may be the hardest insight to internalize. We all think we’re the exception, that we can jump in before the rally and cash out before the crash.

But in chasing “perfect entries,” we often miss the run entirely. This Redditor avoided the trap. He picked three good funds. He committed capital monthly. He left them untouched.

“The best thing you can do is just pick some reputed MFs and leave your money alone as it grows in the background.”

Takeaway: Timing the market can make you feel in control, but more often, it costs you control over actual returns. Let time do the compounding. Chasing moments rarely beats staying the course.

The silent triumph

This isn’t a rags-to-riches story. This is richer: it’s a story of restraint, thought, and process.

He didn’t beat the market. He didn’t out-research anyone. He beat himself. The impatient, impulsive version of himself that once wanted to switch to stocks, pause SIPs, and chase “better options.”

Now, he doesn’t have Rs 1 crore. He has a system that will take him to Rs 5 crores and beyond.

Contradictory, right?

Now, I am certain you found some of the ideas articulated here contradictory to what you believe in. For instance, the latte example. To be honest, I believe money saved is money earned.

The thing to take away here is that every individual is entitled to their own path to financial freedom. When something works, we should learn from it. But not necessarily implement it in our lives.

The key is as long as you are committed to your process, and are moving ahead with eyes wide open in case something were to change, or a better idea were to come along, you will be just fine.

With that, here’s…

A quick challenge before you close this tab

Take a moment to reflect:

Are you investing regularly, or only when it’s convenient?
Do you flinch at volatility or see it as an opportunity?
Is your portfolio based on strategy or impulse?

If that stings a little, good. That’s what a real check-in feels like.

Disclaimer

Chinmayee P Kumar is a finance-focused content professional with a sharp eye for investor communication and storytelling. She specializes in simplifying complex investment topics across equity research, personal finance, and wealth management for a diverse audience from first-time investors to seasoned market participants.

Disclaimer: The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is not a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.