How I Plan to Build a 100+ Crore Investment Portfolio | Step-by-Step Guide with Calculator

Summary

In this video, the speaker shares their investment journey, outlining the goals they're working towards and the system they follow to achieve them. By focusing on the importance of setting clear goals and creating simple, consistent systems for success, they explain how their portfolio is built with disciplined, long-term investing. They emphasize transparency, staying grounded with a boring yet effective approach, and show how compounding returns can lead to significant wealth growth over time. Viewers are encouraged to adapt the system and use a calculator to track their own financial goals.

Takeaways

• 😀 Systems and goals are crucial for success in investing and other aspects of life like health, fitness, and business. Once you define your goal, create a system to achieve it.
• 📊 A goal is simply an idea, and the system is the consistent process that allows you to achieve that goal. The system is more important than the goal itself.
• 💼 The speaker's portfolio is a result of following a system, not seeking extraordinary returns. This approach helps in long-term wealth building, rather than trying to beat the market.
• 💰 The speaker's portfolio has grown to 3.29 crores, with a return of 83.5 lakhs, showing how consistent investing yields results over time.
• 🛠️ The speaker follows a simple, transparent system to make investment decisions, which involves using a portfolio split and a basic investment calculator.
• 📉 Market fluctuations are natural, and the speaker emphasizes the importance of consistent investing rather than obsessing over short-term returns.
• 🏆 Wealth-building is about having three systems: 1) a system to make money, 2) a system to grow money through investing, and 3) a system to use money without selling investments.
• 💡 The speaker shares their portfolio split for investing in various funds, including Nifty 50, midcap funds, small cap actively managed mutual funds, and international indices like NASDAQ 100 and S&P 500.
• 📈 Regular rebalancing of the portfolio is done once or twice a year, but the speaker consistently follows their system for monthly SIPs or lump sum investments.
• 🔮 The magic of compounding is highlighted, with projections showing how waiting longer can significantly increase wealth over time, even with conservative estimates.

Q & A

What is the importance of having a system in place for achieving your goals?

A system is essential because it provides a consistent and structured approach to achieving your goals. Whether in investing, health, business, or relationships, having a system allows you to consistently follow the steps required to reach your objectives without constantly rethinking your approach.

Why does the speaker emphasize the simplicity of the system they use for investing?

The speaker emphasizes simplicity because a complicated approach can lead to confusion and inconsistency. By sticking to a simple system, they ensure they can consistently follow through on their investment strategy and make disciplined decisions over time.

What is the role of goal setting in the speaker’s investment strategy?

Goal setting is about identifying the amount of wealth the speaker wants to achieve. Once that goal is defined, the system is put in place to ensure they stay on track and work towards that target consistently, without overcomplicating the process.

How does the speaker handle market fluctuations in their portfolio?

The speaker acknowledges that market returns fluctuate, but they do not focus on short-term market movements. Instead, they prioritize long-term growth through a disciplined, boring, and consistent investment strategy.

What is the speaker’s view on generating wealth through investing versus business?

The speaker believes that investing is a powerful way to grow, preserve, and pass on wealth, but they do not see it as a primary source of generating wealth. Instead, they focus on generating money through their business and use investing as a means to grow that wealth over time.

Why does the speaker suggest that viewers should not only focus on the highest returns?

The speaker advises against focusing solely on high returns because it’s easy to show high returns in the short term, but true success lies in consistent, transparent investing over time. Long-term success comes from following a disciplined approach, not chasing high returns.

How does the speaker structure their investment portfolio?

The speaker’s portfolio is diversified across various asset classes, including Indian indices (Nifty, Nifty Next 50, Midcap 150), small cap mutual funds, international indices (NASDAQ 100), gold, silver, and momentum-based investments. They follow a specific portfolio split to guide their investment decisions.

What is the system used by the speaker to determine how to invest new funds?

The speaker uses a portfolio split system that allocates a set percentage of new investments to different categories (e.g., 15% to Nifty 50, 15% to Nifty Next 50, etc.). When they have new funds to invest, they input the amount into a calculator based on this split to determine how to allocate the money.

What does the speaker mean by 'compounding is magical' in the context of investing?

Compounding refers to the process of earning returns on both the initial investment and the returns previously generated. Over time, this process accelerates wealth growth, and the speaker refers to it as 'magical' because it can lead to exponential growth, especially when investing for long periods.

How does the speaker’s view on retirement and wealth creation differ from other investment strategies?

The speaker views investing primarily as a long-term wealth creation strategy, with an emphasis on preserving and growing wealth for future generations. They don’t focus on trying to 'beat the market' or use high-risk strategies but instead believe in steady, disciplined investing for long-term success.