₹25,000 SIP to ₹2.17 crore? Marwadi outlines step-up strategy

A monthly systematic investment plan starting at ₹25,000 could build approximately ₹2.17 crore over 15 years if contributions rise 10% each year and investments earn 12% annually, according to Jeet Marwadi, founder and managing director of 1 Finance. The figure is a hypothetical projection, not an assured investment return.

Speaking to Kshitij Anand in an interview published by Economic Times Markets on October 23, Marwadi argued that investors should examine their loans, insurance, savings and household cash flows before concentrating on mutual fund selection. For smaller investors, he said, those decisions can have a greater financial impact than choosing between funds.

The step-up projection depends on investing more

Under Marwadi’s illustrations, a flat ₹25,000 monthly SIP involves contributions of ₹45 lakh over 15 years and produces an estimated ₹1.26 crore at the assumed return. Increasing that contribution by 10% annually takes his projected corpus to about ₹2.17 crore.

For a ₹10,000 monthly SIP, he cited approximately ₹50 lakh with unchanged contributions and ₹87 lakh with annual increases. The step-up figures therefore reflect additional money invested as well as assumed investment growth; they are not a comparison of returns on equal contributions.

The interview does not spell out the calculation conventions behind these estimates. Actual market returns fluctuate, and the outcome will depend on contribution timing, costs, taxes and the investor’s ability to maintain the increases. The quoted corpus figures should not be read as inflation-adjusted purchasing power.

Look beyond the investment account

Marwadi said a financial review should begin with the household balance sheet and cash flows. His examples included traditional insurance policies with weak post-tax returns, costly loans alongside lower-yielding deposits, and investment portfolios containing multiple funds with similar holdings.

He described one household in his firm’s study that held four insurance policies providing ₹16 lakh of life cover against a ₹1.65 crore home loan. The example illustrates his concern that purchasing insurance as a savings product can leave a family with inadequate protection.

Fund duplication was another recurring issue in his client work. He reported seeing portfolios with 30–70 schemes and holdings overlap exceeding 40%. In two households, consolidation into six to eight funds reduced the total expense ratio from 1.32% to 0.71% and from 1.75% to 0.74%, respectively. These are examples reported by his firm, not evidence that every investor needs the same number of funds.

What paid advice should deliver

Marwadi recommended seeking advice before major commitments such as purchasing a home, taking a large loan, buying life insurance or planning for a child. He put the cost of a one-time financial plan at ₹10,000–₹25,000.

For that fee, he said, investors should receive a review of assets, liabilities and cash flows; identifiable costs to address; goals linked to deadlines and funding sources; insurance and loan recommendations; and a low-cost investment plan rather than a product sales pitch.

Citing 1 Finance’s study, The Value of Personalized Advice, he claimed that qualified advice added annualised value equivalent to 1.5%–3% of net worth after fees. The interview does not provide the study’s publication date, sample size or enough methodological detail to assess how broadly the estimate applies. It is a finding presented by a firm that provides financial advice, not an independently established return available to all clients.

Prepare for market falls before they happen

Marwadi’s suggested safeguards included an emergency reserve covering six to 12 months of expenses and keeping money needed for goals within the next two to three years outside equities. He advised investors to judge a market decline against their goal deadlines and rebalance towards their intended asset allocation rather than sell in panic.

He also warned against interrupting regular investments to accommodate new borrowing. According to his illustration, an early two-year pause in the ₹25,000 SIP could reduce the eventual corpus by about ₹25 lakh. That estimate, too, depends on the underlying investment and timing assumptions.

A practical test for existing products

Marwadi proposed checking each financial product against three considerations: the goal it serves, its annual cost and whether the investor would choose it again today. He recommended comparing regular and direct mutual fund plan expenses, checking overlapping holdings, and weighing loan interest rates against post-tax returns on debt investments.

His review also extended to life and health insurance adequacy, retirement savings arrangements, updated nominations and a will. The broader emphasis was on making existing household finances work more effectively, rather than treating a higher investment return as the only route to financial security.