Gajendra Kothari, MD of Etica Wealth Management, has built a massive mutual fund portfolio by investing ₹52 lakh monthly through SIPs. His approach shows how consistent, long-term contributions—and gradually increasing these amounts as income grows—can create significant wealth, even starting from a modest base in 2010.
Gajendra Kothari, the Managing Director and CEO of Etica Wealth Management, has drawn attention for his disciplined personal investment strategy. He currently invests ₹52 lakh every month through Systematic Investment Plans (SIPs) in mutual funds. His stated goal is to grow his personal portfolio, which is currently estimated to be between ₹63 crore and ₹67 crore, to ₹100 crore by 2030.
It is important for investors to note that Etica Wealth Management is a private, unlisted company and does not trade on the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). The story of Kothari’s investment journey is primarily a case study in personal finance habits rather than a corporate development.
The Strategy of Gradual Scaling
The core of Kothari’s financial approach is not just the high amount he invests today, but the concept of scaling. He began his journey in 2010 with a monthly SIP of ₹10,000. Over the years, as his income grew, he systematically increased his contribution amount. This "step-up" method—where an investor increases their monthly contribution annually—is a widely recognized strategy that allows the power of compounding to work more effectively over time.
His firm encourages this same culture among employees, many of whom have built their own portfolios by starting with smaller, manageable amounts—some as low as ₹500 or ₹21,000 per month—and increasing them as their careers progressed. The collective SIP contribution from the firm's employees serves as an internal example of how consistent savings can accumulate into a large corpus.
Understanding Market Risks
While this strategy highlights the benefits of long-term planning, investors should keep in mind that mutual fund investments are inherently subject to market risks. Past performance of any mutual fund scheme, or the success of one individual’s strategy, does not guarantee similar results in the future. Mutual fund portfolios are susceptible to market volatility, and returns can fluctuate based on broader economic conditions, sector performance, and specific fund management decisions.
Investors aiming to build wealth through SIPs should also remain mindful of internal costs, such as the Total Expense Ratio (TER), which can affect net returns over the long term. Furthermore, while the "step-up" SIP approach is a powerful tool, it requires a stable and growing income stream to maintain the increases in contributions over several years. For many, the key monitorable remains consistency in investing, regardless of the starting amount.