The Rs 100 crore dream

Ladies and gentlemen, fasten your seatbelts, for we are about to step into the shoes of Mario, the beloved video game hero. But instead of jumping over Goombas and dodging fireballs to save Princess Peach, our path will be one of discipline to build wealth. A path where we keep moving ahead with the help of mid- and small-cap funds to reach the Rs 100 crore club, in spite of market volatility and unexpected twists acting as roadblocks. If you are thinking we have lost our marbles, steady on. Let's give you a real-life example of the Franklin India Prima Fund, the oldest mid-cap fund in the country. If one had invested Rs 10,000 per month since the fund's inception in 1993 and stepped it up by 10 per cent every year, that person would be sitting on Rs 42 crore now. Going by historical averages, if the person kept going for another five to six years, they would hit the incredible Rs 100 crore mark. But just like Mario's quest to save his princess is filled with excitement - good and bad - reaching the Rs 100 crore club too is an adventure where the stakes are high, the risks are many but the rewards are life-altering. Benefits of investing in mid and small-cap funds A leap of faith in mid- and small-cap funds The beginning of every Mario adventure starts with a leap into the unknown. It's the same when investing in mid- and small-cap funds. While the risk can feel daunting, the potential for growth is enormous. Think of mid- and small-cap funds as boosts from the Mario game. They can be engines of explosive growth. Unlike large-cap companies that are more reliable and steady Eddies, mid and small caps are daredevils. These stocks have historically given annualised returns in the range of 15-20 per cent over long investment horizons, and if left to compound over decades, these can act like Mario's power-ups to become something substantial. Very substantial. Hidden blocks: Faster wealth creation Like Mario coins and stars that boost speed, mid- and small-cap companies are hidden gems that can turbocharge your dreams of wealth. They are out there, but you've got to be willing to dig. That's because these companies tend to be under-researched. In other words, there are opportunities for massive va

This article was originally published on December 15, 2024.