HOW TO BECOME THE BAADSHAH OF INVESTMENTS

Just as Shah Rukh Khan began his career with humble beginning in Deewana and a few less-successful films, he didn’t rise to the top overnight. Through dedication, small but consistent steps, and persistence, he steadily built his way to becoming the "Baadshah of Bollywood."

Similarly, in investing, one doesn’t need to make big moves right from the start.

The key lies in starting small, being consistent, and smartly increasing our investments over time.

One of the biggest challenges we face is the natural rise in expenses as our earnings grow. Promotions, bonuses, and salary hikes bring a comfortable increase in income, but expenses seem to catch up automatically—new lifestyle changes, family responsibilities, or spontaneous splurges. However, our investments often stay at the same level unless we actively decide to increase them.

Imagine you start a SIP (Systematic Investment Plan) with ₹50,000 per month. It’s a good start, but if it remains stagnant, you’re only tapping into a fraction of your financial potential. There’s a smarter way to ensure your investments grow in line with your income.

The Power of a 10% Annual Step-Up

A simple 10% annual step-up in your SIP can make a massive difference over time. Each year, as your income increases, you bump up your SIP by just 10%. It may feel small in the moment and barely noticeable in your monthly budget. But, the impact over 20 years? Astonishing.

If you consistently invest ₹50,000 per month without any step-up, you’ll build a solid corpus of around ₹5 crore (assuming an average return rate of about 12%). But with a 10% annual increase, your corpus can almost double to approximately ₹10 crore over the same period.

That’s the magic of compounding on a rising investment base—little by little, it adds up to something remarkable.

Small Steps to a Grand Destination

Starting small and setting a big goal is the path to becoming the Baadshah of Investments. Each year, as your income grows, your SIP shouldn’t stay the same. Elevating it by just 10% ensures that your investments grow steadily alongside your earnings. And the best part? It doesn’t feel like a big sacrifice, as these small annual increases become part of your financial routine.

As you stay on this journey, every increment brings you closer to that dream corpus, paving the way to your own financial stardom. With this discipline, you’re not just a passive investor but a proactive one, guiding your investments to make the most of your increasing earning potential.

Why Should Your SIP Stay the Same When Your Income Doesn’t?

Our income is rarely stagnant—raises, bonuses, and other financial boosts are natural in a progressive career. So, why should our investments be left behind? Taking inspiration from SRK’s journey from humble beginnings to superstardom, we too can start with a modest investment and amplify it steadily, ultimately achieving the status of an “Investment Baadshah.”

Start smart, increase steadily, and one day, you’ll look back at this journey with pride and satisfaction. Because, remember, it’s the small beginnings that lead to the grandest of destinations.

Warm Regards,

Mohit Beriwala

CFA, FRM