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Pandit Nehru once threw a 100 rupee note across the Ganga in 1947 and Indira Gandhi caught it on the other side. I tried the same yesterday from my room, and it couldn’t even cross my bed.

Why? Because 100 rupees went a lot further back in 1947.

The above story is a wise crack on how much lesser in value money has become in recent years due to the depreciation of the rupee and rising cost of goods (inflation). This is a big reason we should be investing some amount of money during our earning years instead of keeping it in our bank or spending aimlessly. And even if we want to finally spend, isn’t it best if you somehow bought it for only half the listed price?

That’s where we start with just Rs.1000 a month. After all, it’s the price of a few drinks at your favourite pub, pizza from Domino’s, movie date, four packs of cigarettes! If you are reading this, I am sure you’d not blink an eye investing Rs.1000 a month.


The concept of compounding interest can be taken full advantage of and thankfully, it works the same for all amounts of investment. The logic is that as the time increases, you begin to earn interest on the interest as well.

No wonder Einstein considered COMPOUNDING the eighth wonder of the world!

Below is the table for Rs.1000 invested over various time periods, in various investment instruments.


I’ve highlighted the relevant column for discussion. Who likes so many numbers, anyway? Check out our SIP Calculator. It is nothing short of magic!

Five big takeaways

1. To get anything above Fixed Deposits, you need to take some amount of risk. The higher the risk, the higher the return. The choice is yours. We think, not taking any risk is the biggest risk you’re taking.


2. Every time you spend the next 1000 rupees; think about what you’re missing out. Ten yrs later, you could take a vacation off to Europe! One pizza, one vacation off the list! One more pizza, there goes your 18th birthday gift for your future kid.

You can now look at the table again

3.Where you invest matters the most. The same amount sitting idle in your bank, will not even get you a pizza! See Table B which has the inflation adjusted numbers.


4. If you wait long enough for compounding to do its magic on your Rs.1000 investments, at retirement you’d have a cool 1.4 Cr on your investment of 3.6L. That’s worth Rs 35.3L in today’s terms (accounting for inflation)

5. Break your goals into multiple 1000 rupee goals. Surprise gift for your wife on your 10yr anniversary or that Rolex you’ve been only ogling at in those glossy magazines? Use this rule of thumb. For every 1000 you could get something that’s worth Rs 5L today, 15yrs later or worth Rs 10L today, 20yrs later.

5 Bonus: Every 3% extra in returns, doubles your wealth! See the 30yr results for 15%, 18% and 21%. So the next time you see an opportunity that yields 3% less, you know what to do.

What can we get for Rs.2000?

A Harley Davidson Forty Eight (10.54L on-road price, today).

What if you plan to gift yourself this when you turn 40/50? Let’s make this the “Mid-Life Crisis” gift. If you’re 25, this is your toy when you turn 40 and if you’re in your thirties, let’s keep it for 50. Milind Soman just declared 50 as the new 40.


Where we invest matters the most

To most Indians, a recurring deposit (monthly form of FD) at a scheduled bank is the common route taken. While this may seem reasonable, the earning potential is limited for two reasons. First, the amount of interest paid on an average is 7%, and that’s falling drastically as the banks are overflowing with cash thanks to demonetization. Second, you pay taxes of up to 30% (depends on your tax slab) on your earnings.

You need an investment advisor to help you get there

While the above calculations are built on MS Excel, achieving those require a complete understanding of various investment options, risk, market conditions, macro-economic factors and most importantly, timing.

At Scripbox, we do all of that and the size of your pocket doesn’t matter. It works for all amounts of investment.
It just takes 5 minutes to setup your investment account. Are those numbers achievable?

Harley’s price estimation is based on annual price hike for automobiles from 2011 to 2015 (3.8%). Does not account for currency fluctuations.

  • All returns are indicative basis past performance. Actual performance can vary.*

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