The Secret Mutual Fund Strategy To Make Crores! Crorepati Formula with Gajendra Kothari

In this insightful Face2Face with Vivek Bajaj and Gajendra Kothari, we decode the core principles of long-term wealth creation through mutual funds. Kothari emphasizes that holding three or four well-chosen funds is often better than owning many, as a compact portfolio is easier to manage and avoids unnecessary overlap.

He explains how to match your investment vehicle with your financial goals — choosing debt or liquid funds for short-term needs and equity or hybrid funds for long-term aspirations. The discussion highlights the power of small SIPs, where even ₹5,000 invested consistently can grow significantly over time through compounding and discipline.

Kothari also simplifies the debate between direct and regular plans, suggesting direct plans suit confident investors, while regular plans offer valuable guidance and emotional support. A strong message throughout is the importance of behavioral discipline — avoiding panic, market timing, or hype chasing — to let compounding work effectively.

He advises focusing on consistent rolling returns instead of short-term performance and using market corrections as ideal opportunities for portfolio consolidation to reduce tax impact.

The role of a good financial advisor is underlined as crucial — acting as a defense against emotional mistakes and ensuring tax efficiency and goal alignment.

Finally, Kothari introduces a simple asset allocation framework: prioritize safety first, liquidity second, and returns third — the true foundation of patient, long-term compounding success.