Disclaimer: The names and locations used in this article have been changed to protect the privacy of the investors. Any resemblance to actual persons is purely coincidental.
Introduction: The Hidden Trap in High Returns
This is the story of two investors who began their financial journeys in 2013 and took two very different approaches to investing. One had a high income, an aggressive appetite for returns, and relied on market noise. The other followed a simple, consistent strategy—guided by a mutual fund advisor.
By 2023, their results couldn’t be more different.
This case study highlights why chasing returns often backfires, and how patience, planning, and the right guidance can quietly build real wealth.
Dr. Arjun Mehta (2013–2023): The Return Chaser
Background:
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Cosmetic Surgeon in Mumbai
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Monthly income: ₹2.5 lakhs in 2013, rising to ₹4.5+ lakhs
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Managed his own portfolio based on YouTube tips, stock market groups, and Twitter trends
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Focused on “high-return” investments: crypto, IPOs, small-cap stocks, sectoral mutual funds
Investment Behavior:
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Frequent buying and selling based on short-term news
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Reacted emotionally during market crashes
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Took personal loans to invest during bullish phases
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Never had a clear financial plan or asset allocation
Key Market Events and His Reactions:
2013–2014 (Nifty 50 Breakout)
Entered mid-rally after seeing market headlines. Invested in small-cap funds near the top. Earned 18% returns in one year—boosting his confidence, falsely.
2016 (Liquidity Shock & Market Dip)
Panicked during a sudden correction. Sold small-cap funds at 15% loss. Missed the post-2016 recovery.
2017 (Midcap Boom)
Jumped into midcaps and thematic funds using borrowed funds. Made 25–30% in a short time. Increased risk-taking behavior.
2018 (Small & Midcap Crash)
Portfolio fell 30%. Panic set in. Redeemed funds and shifted to pharma and tech themes too late.
2020 (COVID Crash)
Lost ~35% of portfolio value. Exited equity entirely in March. Missed the V-shaped recovery.
2021 (Post-COVID Rally)
Entered crypto and IPOs at peak (Zomato, Paytm, Dogecoin). Major losses by 2022.
2023 (Market Stabilization)
Shifted corpus to low-yield fixed deposits. Became risk-averse. Still skeptical about seeking professional help.
10-Year Outcome (2013–2023):
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Net Worth: ₹28 lakhs
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CAGR: ~6%
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Lost more to poor timing and emotion than market performance
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High stress, low satisfaction
Mr. Rohan Sinha (2013–2023): The Wealth Builder
Background:
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IT Engineer in Pune
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Monthly income: ₹45,000 in 2013, gradually increased to ₹1.2 lakhs
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Met a mutual fund advisor in 2013 who helped set up SIPs in diversified equity funds
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Built a portfolio around long-term goals: home, retirement, emergency fund
Investment Behavior:
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Started with ₹5,000 monthly SIP, increased yearly by 10–15%
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Never stopped investing during market corrections
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Rebalanced portfolio once a year based on advisor’s input
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Ignored hype and followed a steady plan
Key Market Events and His Reactions:
2013–2014 (Index Breakout & FII Inflows)
SIPs already running. Benefited from the rally. Did not make any changes.
2016 (Temporary Correction)
Continued SIPs without panic. Viewed it as “discount season.” No redemptions.
2017 (Broad Market Rally)
Enjoyed strong NAV growth. Rebalanced slightly to reduce midcap exposure.
2018 (Correction in Small & Midcaps)
Portfolio down ~15%, but stayed calm. Increased SIP amount using bonus.
2020 (COVID Crash)
Portfolio dropped ~30%. Added ₹1.5 lakh lump sum during the fall, on advisor’s recommendation. Portfolio doubled over the next 18 months.
2021 (Post-COVID Bull Run)
Stayed invested, avoided crypto and IPOs despite peer pressure. Added NPS for tax planning.
2023 (Market Consolidation)
Portfolio crossed ₹95 lakhs. Advisor helped shift some funds to short-duration debt for stability and upcoming goals.
10-Year Outcome (2013–2023):
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Net Worth: ₹95 lakhs
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CAGR: ~12%
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Low stress, high clarity
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Well on track to retire early by 2028
Side-by-Side Comparison
What Helped Rohan Stay on Track?
Besides his consistent habits, one of Rohan’s smartest decisions was connecting with a mutual fund advisor early in his career. The advisor helped him:
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Avoid panic during crashes
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Stay away from FOMO-driven trends
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Build a diversified portfolio aligned with life goals
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Understand the power of long-term compounding
Sometimes, just having a calm voice beside you can be the difference between building wealth—and destroying it.
Key Takeaways from 10 Years of Market Cycles
1. Market Events Affect Everyone — Reactions Create Results
Both faced the same bull and bear markets. Rohan stuck to the plan. Arjun chased the market.
2. Income Doesn’t Equal Wealth
Arjun earned nearly 3x more, yet his net worth is 1/3rd that of Rohan’s.
3. You Don’t Need Big Returns — You Need Consistency
Rohan never earned more than 12% CAGR, but did it every year for a decade.
4. Guidance Matters
Investing on your own is fine. But having a guide who understands both the markets and your goals can make all the difference.
Final Thoughts: Real Wealth Is Quietly Built
From 2013 to 2023, markets went through:
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Index breakouts
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Midcap booms and busts
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Global shocks like COVID-19
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Massive liquidity-driven rallies
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High inflation and interest rate cycles
Amidst all that noise, one investor stayed calm, kept investing, and followed a long-term strategy with a trusted mutual fund advisor.
The other kept reacting, chasing, switching—and stayed stuck.
You don’t need to be a financial genius to build wealth. You just need a plan, consistency, and maybe a little help.
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