Yes, you can increase your wealth using mutual funds.
Mutual funds are a good way to accumulate your wealth. Can mutual funds really make you rich? You need to have a good experience to make money. This is a slow way to make money. You will not be able to make money in a single day. Invest your money in this in the right way, and if you invest it properly for 10 to 20 years, your money will definitely be more than before. This is a safe and low-risk way. I have answered many questions about mutual funds. Read this article till the end.
All Questions Answered!
Is it true that no one has ever become rich by investing in a mutual fund?
Look, this is a lie. Many people have made their wealth in mutual funds. This is a lie. You can make your money grow. But you have to have the right path for it. This is a long-term path. You have to invest your money consistently for about ten to twenty years. But if you invest in the right funds, you will be able to grow your wealth.
Has anyone become rich from mutual funds
Yes, there are people who have become rich by investing in mutual funds.
Many big investors invest their money in mutual funds rather than stocks because it is a safer way. This is a bit safer if you compare your money to the stock market. Therefore, investors invest a portion of their money in mutual funds.
There are 10 such people in India who have also invested in mutual funds. Who are they?
Top 10 Richest Mutual Fund Investors in India
- Radhakishan Damani
Estimated MF Holdings: ₹5,000+ crores (across funds)
Founder of DMart (Avenue Supermarts), but also a big investor in equity MFs and index funds. - Rakesh Jhunjhunwala’s Family (Late)
Estimated MF Holdings: ₹3,000+ crores (via portfolio management & MFs)
The “Big Bull” of Indian markets, his family continues to hold significant MF investments. - Mukesh Ambani
Estimated MF Holdings: ₹2,500+ crores (via family office & institutional investments)
Reliance MF is one of India’s largest AMCs, and he likely holds large passive fund stakes. - Azim Premji
Estimated MF Holdings: ₹2,000+ crores (via Wipro & personal investments)
Philanthropist with major holdings in equity & debt funds. - Nithin Kamath (Zerodha)
Estimated MF Holdings: ₹1,500+ crores (via passive index funds & ETFs)
Promotes low-cost index investing; likely holds large SIPs in ETFs. - Ashish Dhawan (ChrysCapital)
Estimated MF Holdings: ₹1,200+ crores
PE investor with heavy allocations to equity MFs. - Nemish Shah (Enam Holdings)
Estimated MF Holdings: ₹1,000+ crores
Veteran investor with large MF portfolios. - Vijay Kedia
Estimated MF Holdings: ₹800+ crores
Stock market veteran who also invests in active equity MFs. - Prashant Jain (Ex-HDFC MF)
Estimated MF Holdings: ₹500+ crores (personal + family)
Legendary fund manager who likely holds his own fund schemes. - Nilesh Shah (Kotak MF)
Estimated MF Holdings: ₹400+ crores
MD of Kotak AMC; invests heavily in his own funds.
Is it possible to become wealthy by investing small amounts in mutual funds?
Yes, you can create wealth by investing small amounts
But it takes a lot of time because the time it takes to make a small amount you make more will also increase. See, if you invest more time and the right amount in mutual funds, your money will also increase. You can make even small amounts more.
Now, if you have this much money, invest it in mutual funds. Your income will be higher in the future. But if you keep finding money in mutual funds, this will create your good income.
You can make your mutual funds plan by looking at this table. This table gives an estimate of how your wealth will increase in the future if you invest a small amount of money. You can start your mutual fund journey by looking at this.
| Monthly SIP (₹) | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years | 30 Years |
|---|---|---|---|---|---|---|
| ₹500 | ₹40,000 | ₹1.2 Lakh | ₹2.5 Lakh | ₹4.8 Lakh | ₹9.2 Lakh | ₹17.5 Lakh |
| ₹1,000 | ₹80,000 | ₹2.4 Lakh | ₹5 Lakh | ₹9.6 Lakh | ₹18.4 Lakh | ₹35 Lakh |
| ₹2,500 | ₹2 Lakh | ₹6 Lakh | ₹12.5 Lakh | ₹24 Lakh | ₹46 Lakh | ₹87.5 Lakh |
| ₹5,000 | ₹4 Lakh | ₹12 Lakh | ₹25 Lakh | ₹48 Lakh | ₹92 Lakh | ₹1.75 Cr |
| ₹10,000 | ₹8 Lakh | ₹24 Lakh | ₹50 Lakh | ₹96 Lakh | ₹1.84 Cr | ₹3.5 Cr |
Can mutual funds make you a millionaire?
Yes, you can become a millionaire by investing in mutual funds. With discipline, time, and the right strategy, mutual funds can absolutely make you a millionaire
You need to have the right approach and understanding about mutual funds. You need to understand how to invest and in which funds you will get the right return if you invest. You need to study how mutual funds work and how we can invest in them and earn more.
5 Steps to Become a Mutual Fund Millionaire
- Start Early (The earlier, the bigger the corpus.)
- Pick High-Growth Funds (Equity, flexi-cap, or index funds).
- Increase SIP Yearly (Raise by 10% as income grows).
- Stay Invested for 15+ Years (Avoid panic withdrawals).
- Reinvest Dividends (Choose Growth option, not Dividend).
Assumes 12% annual return, no withdrawals, and SIP increases by 10% yearly
| Monthly SIP | Duration | Final Value (@12%) |
|---|---|---|
| ₹5,000 | 30 years | ₹1.75 crore |
| ₹10,000 | 25 years | ₹2 crore |
| ₹20,000 | 20 years | ₹2.4 crore |
Can we create a huge amount by investing in mutual funds?
Yes, you can build a huge amount of wealth in mutual funds. Mutual funds are one of the most powerful wealth-building tools for long-term investors. With discipline, time, and smart strategies, you can accumulate crores of rupees—even if you start with small amounts.
You should invest more than 5000 per month in SIP. That too without fail. You should invest the money for ten years or 20 years without missing a single month. What should be your goal? You should make an investment plan in funds that give returns of more than 12% per year, and you should not withdraw the money from the investment you have made in any way.
If there is any problem in the market and the market goes down, you should not withdraw the investment due to your emotions for any reason. Your plan should be simple, and you should follow it for 20 years without making any mistakes. Also, check how much tax you owe
And if you want to get higher returns, you can consider investing in equity funds. These give higher returns than regular mutual funds. Similarly, regular mutual funds are a little more risky. If you want to get higher returns in equity mutual funds, you can invest in them in your mutual fund account.
| Monthly SIP | Total Invested | Value After 20 Years (@12%) |
|---|---|---|
| ₹5,000 | ₹12 lakh | ₹48 lakh |
| ₹10,000 | ₹24 lakh | ₹96 lakh (Almost ₹1 Cr!) |
| ₹15,000 | ₹36 lakh | ₹1.44 crore |
| ₹20,000 | ₹48 lakh | ₹1.92 crore |
How Mutual Funds Can Build Wealth (And Do It Steadily)
These straight first mutual funds won’t make you rich overnight. But over time? Absolutely.
- They leverage compounding: The longer you stay invested, the more your earnings earn more. It’s like planting a mango tree, water it, wait, and one day, it gives you shade and fruit.
- They offer diversification: Instead of betting on one stock or company, your money is spread across many. That reduces risk and gives you more stable returns.
- Professional management: You get expert fund managers watching your money. They research, analyse, and rebalance your investments. That’s a win, especially if you don’t have the time or skill to manage stocks on your own.
You start a ₹5,000 monthly SIP in an equity fund that gives around 12% average annual returns. In 25 years? You’re looking at over ₹85 lakhs. Push it to 30 years? You’re easily crossing ₹1.5 crore. That’s not just savings, that’s wealth.
Key Factors That Determine Wealth Creation
Wealth creation isn’t just about where you invest; it is how you invest, too. are the 4 major keys:
1. Time Horizon Matters Big Time
Start early. Even a few years’ head start can be life-changing.
- Invest ₹5,000/month for 20 years = ~₹50 lakhs
- Invest the same for 30 years = ~₹1.5 crore
2. The Type of Fund You Choose
Not all mutual funds are created equal.
- Equity funds (especially mid and small caps) can generate higher returns but carry higher risks.
- Debt funds are safer but won’t make you “rich” quickly.
- Hybrid funds give you a mix of safety with some growth.
3. Consistency Beats Timing
We all want to buy low and sell high. But timing the market? Even pros mess that up.
SIPs (Systematic Investment Plans) help you stay consistent. You invest a fixed amount every month, regardless of market mood.
4. Costs and Fees
- Expense ratio — a lower ratio means more money stays in your pocket.
- Exit loads — some funds charge if you exit early.
Best Types of Mutual Funds for Wealth Creation (Especially in India)
Wondering which mutual funds help you get rich? Here are some tried-and-true categories:
1. Equity Mutual Funds
Best for long-term wealth creation. Returns can range from 12% to 18% annually, sometimes even higher.
- Large-cap funds — safer bets, invest in big companies like Reliance, Infosys.
- Mid-cap funds — more growth potential but also higher volatility.
- Small-cap funds — can explode in value, but you’ve gotta have the stomach for ups and downs.
2. ELSS (Equity Linked Savings Scheme)
Want tax benefits and growth? ELSS is your friend. Perfect combo of saving tax and building wealth.
- Lock-in: 3 years
- Tax deduction: Up to ₹1.5 lakh under Section 80C
- Returns: Comparable to other equity funds
3. Index Funds
They track indices like Nifty 50 or Sensex. Low cost. No fund manager is trying to beat the market. Yet, over time, they often match or even outperform actively managed funds. Good for new investors or those who just want to “set it and forget it.”
4. Hybrid Funds
A mix of debt and equity. Less risky, ideal if you’re close to retirement or have medium-term goals.
You can check live NAVs and compare equity, debt, and hybrid funds using Moneycontrol’s mutual fund page.
SIP vs Lump Sum: Which Builds Wealth Faster?
where a lot of people get stuck. Should you go for SIP or invest a big chunk all at once?
SIP: The Disciplined Approach
Perfect for salaried folks. Small monthly amounts that build up over time.
- Reduces risk with rupee cost averaging
- Easy to start (even ₹500/month!)
- Builds a habit of investing
Lump Sum: High Risk, High Reward (Sometimes)
Got a bonus or a big cash inflow? Investing it at the right time, like when markets are dow,n can give you big gains.
But here’s the problem: timing the market is tough. Get it wrong, and you could see short-term losses.
So which is better?
Honestly? Do both. in those points
- SIP gives you consistency.
- A lump sum gives you acceleration when opportunities arise.
Use this SIP calculator by ET Money to simulate your future returns based on your investment amount.
Real-Life Wealth Scenarios (That Aren’t Just Hype)
Amit, 29, Bangalore – ₹10,000 SIP in Mid-Cap Fund
Started at age 25. Has already built a ₹7.5 lakh corpus in 4 years. Says, “Didn’t even notice the ₹10k going out every month. Now I’m planning a European trip with my fund returns!”
Sneha, 38, Mumbai – Invested ₹5 lakh lump sum in March 2020
Bought when markets crashed due to COVID-19. That ₹5 lakh is worth over ₹11 lakh in 2025. Nearly 2x in 5 years. Timing helped but she also stayed invested, even when markets were shaky.
UTI Mid Cap Fund Example
A ₹10,000 SIP started 20 years ago in this fund is now worth over ₹1.6 crore. That’s not a joke. That’s real long-term discipline paying off.
Common Myths Debunked (No, You Don’t Need ₹10 Lakh to Start)
Myth 1: “You need a lot of money to invest.”
Nah. Most mutual funds let you start with just ₹500. Even ₹100 in some cases. So money isn’t the barrier mindset is.
Myth 2: “SIP returns are fixed.”
SIPs aren’t like FDs. Returns vary because they’re market-linked. But historically, over 5–10 years, good funds have delivered solid double-digit returns.
Myth 3: “You’ll lose all your money.”
Only if you panic and withdraw during downturns. Stay invested, and your money has a very high chance of growing history proves that.
Myth 4: “I’ll become rich in 2–3 years.”
Let’s be honest that’s wishful thinking. Mutual funds work best over 10+ years. If you want fast money, try the lottery. But if you want steady growth, stay the course.
FAQs
Q. Can I start investing in mutual funds with ₹500?
Absolutely. Many funds let you start SIPs with just ₹500/month.
Q. What’s the average return I can expect?
Long-term equity funds have historically given 12–15% annual returns.
Q. Are mutual funds safe?
They carry market risk but are way safer than directly buying random stocks especially with diversification.
Q. How long should I stay invested?
Minimum 5 years. Ideally, 10+ for real wealth creation.
Q. What’s better SIP or lump sum?
Both have their benefits. Use SIPs for discipline, and lump sums when you spot a good opportunity.
Conclusion
I hope I have answered all your questions. How can you start with a small amount of investment, and how can you really grow your wealth with Mutual funds? I think I have answered many similar questions in this article. If you have any questions, please comment and contact me. If you want to know more about Mutual funds and the stock market, check out this Moneykoan website and share this article with your friends. Have a nice day.
