Investing in mutual funds can be intimidating, but with the right strategy, your money can grow steadily, even if you withdraw regularly. Let's take a real-world example to understand how the Parag Parikh Flexi Cap Fund works.
In 2015, Mr. Sharma decided to invest ₹5,00,000 in the Parag Parikh Flexi Cap Fund. He didn't just leave it there - he started a Systematic Withdrawal Plan (SWP) of ₹8,000 every month to cover some monthly expenses.
Over the next 10 years, his fund grew consistently. By 2025, his total investment had nearly doubled, even after taking out ₹8,000 each month!
Flexi-Cap Advantage: The fund invests across large-cap, mid-cap, and small-cap stocks, allowing it to capture growth opportunities in different market conditions.
Global Exposure: The fund also invests in international companies, which adds diversification and reduces risk.
Compounding Works: Even with monthly withdrawals, the remaining investment keeps compounding, generating steady growth over time.
Long-Term Investing: Staying invested for more than 5-7 years allows the fund to ride out market fluctuations and maximize wealth creation.
You can withdraw monthly through SWP without losing the growth potential of your investment.
Diversified funds like Parag Parikh Flexi Cap Fund help balance risk and return.
Long-term consistency is the key - even moderate withdrawals don't prevent wealth growth.
Pro Tip: Starting early and letting compounding work in your favor is more powerful than trying to time the market.
Disclaimer: This content is for educational purposes only. Consult your financial advisor before investing.
The 10-Year Growth In 2014, one of my clients invested ₹10,00,000 in the Parag Parikh Flexi Cap Fund. He started a Systematic Withdrawal Plan (SWP) of ₹10,000 every month.
By 2025, despite taking out money every month, his investment had doubled!
Starting Small, Growing Big In 2017, Mrs. Rao started with ₹2,00,000 and withdrew ₹5,000 monthly for family expenses. By 2025, her fund had grown to over ₹4,00,000, while she comfortably covered her monthly needs.
Compounding Magic Mr. Verma invested ₹7,50,000 in 2015 and didn't touch it for 8 years. Even without withdrawals, his money grew to ₹15,00,000! The lesson: compounding works best when you stay invested.
Flexi-Cap Advantage: Invests in large, mid, and small-cap stocks to capture growth opportunities.
Global Exposure: Gains from international companies reduce risk and add diversification.
Compounding: Even with monthly withdrawals, the remaining investment continues to grow.
Long-Term Investing: 5-10 years is the sweet spot to ride market ups and downs.
Pro Tip: You don't need to invest huge amounts. Even small, consistent investments through SIP or SWP can build wealth over time.