Gajendra Kothari, the co-founder of Etica Wealth, has revealed that he puts ₹52 lakh into mutual fund SIPs every month, and has a net worth of ₹67 crore. During a recent appearance on Kunal Jaisingh’s podcast, the Mumbai-based entrepreneur opened up about his wealth management strategy and advised youngsters to start saving as early as possible to see the magic of compounding.
From ‘middle class’ family to Mumbai crorepati
On his website, Kothari describes himself as “a very average person born to a middle-class family” in Jorhat, Assam. These are the words he also used during the podcast, telling the host that he grew up in a middle class family and came to Mumbai with very little.
Kothari revealed that when he first came to Mumbai in 2004, he shared a tiny apartment in Andheri with two other people. The rent for the apartment was ₹6,000, and each person paid ₹2,000.
Kothari’s salary at the time was ₹30,000. “I led a very modest life,” he recalled. “But I worked very hard.”
On his website, he added: “16 years ago, when I first came to Mumbai like any young person with dreams in my eyes, standing on the Marine Drive promenade, I wondered, will I be able to live in any of these sea-facing houses one day.”
(Also read: Investor trolled for advising people to put money in SIPs instead of buying a car)
On the importance of saving
{{/usCountry}}(Also read: Investor trolled for advising people to put money in SIPs instead of buying a car)
On the importance of saving
{{/usCountry}}Gajendra Kothari, a personal finance advisor, admitted that he only started investing in mutual funds at the age of 30. He is today a strong advocate for investing right, expounding on the benefits of compound interest in growing wealth.
“I realised that if you want to build long-term wealth, you need to invest in equities,” he said, explaining that most Indian families still believe in real estate, fixed deposits and gold.
“As soon as I say equity, people think of the stock market or gambling. But that’s not the case. When you invest through mutual funds, you invest in businesses,” he added. “This is the smartest way in the world to earn money.”
Asked how much he puts into mutual funds every month, the founder and CFA answered: “My family and I have SIPs of ₹52 lakh per month.”
He also revealed that in the space of a few years, his net worth has grown from ₹62 crore to ₹67 crore.
“That is the whole thing. After a while, your money works for you. You don’t even realise when 62 becomes 67,” he said, praising the magic of compounding.