BlogsHow to Build your 1st Crore with Dinero Investment Plan (The Power of Compounding)

How to Build your 1st Crore with Dinero Investment Plan (The Power of Compounding)

September 16, 2022

Remember the piggy banks we had as children? We stacked up coins for months & some for years and the most exciting part was to break the piggy bank & inhale the money in one go. Well, speaking for myself that is all the personal finance I learnt as a child.

Today, savings account took the place of my piggy bank (barring the 3-5% returns). But in all this one never told me “What exactly happens to my stashed money over time?”  

If you studied econ, you would know that your money loses its value over time - thanks to something called “Inflation”. The average Indian inflation rate is at 7.5% per year (observed from years 1960 to 2021). So that means things/commodities would cost around 7.5% more than they did last year. For example, the Rs.10 Dairy Milk chocolate you have today is way too less in quantity when compared to what you had as a child. That is inflation in action.  

Mondelēz International, owners of Cadbury Dairy Milk, said it is reducing the size of its sharing bars by 10% while maintaining the same price, blaming inflation and the costs of producing chocolate (

Now coming back to our favorite savings bank account, say you have 2-5 lakhs of your hard-earned money stashed diligently in your savings (savings account in India have an approx. interest rate of 3-5% per year) and never been looked at it again for next 10 years, although the value would have increased by 3-5%, you are still losing money over time, this happens because everything around you would have increased around 7.5% ish due to inflation.  

The issue here is not just understanding how to not lose money, we also want to make money & how does one do that?

Here is where you get in touch with Compounding & it’s sheer magic!

Compounding is a powerful process of generating money on both, the money you invested and the interest you earned, either a linear growth or exponential growth is observed depending on which financial instrument you chose to invest.  

Exponential growth & Linear growth? what does that mean?  

Generally, when we are storing our money in Fixed deposits or Savings account, we see a Linear growth, it means your money has same or fixed gains (remember the 3-5% returns?!) at all time internals whereas exponential growth gives you larger amount of gains over the specified period of time.  

So, for example, if I were to put a hundred rupees into an investment which gives approx 15% interest for 15 years, next year it would be worth Rs. 115. And then the year after it will be Rs.133 because it is 15% of then 115, and then it would be Rs.154 something. And this would very quickly compound so that in 15 years' time, my 100 rupees will have become Rs.953 approx . And if we adjust for 7.5 % inflation, our money is still worth it in 15 years' time, this is good.  

We have more than doubled our money by just letting it compound. And it really does not seem like it would do that because 15% feels like a small amount of money. But if you extrapolate 15% over 15 years you more than double your money, which is exponential growth.  

If you are now asking “Where do I invest to experience exponential growth?”

We got you covered!

Have you ever heard of the 15-15-15 rule?

It goes like this, when you invest Rs.15,000 per month for a period of 15 years in a mutual fund that could earns 15% returns, and you make around Rs. 1 crore.  

Seems simple, doesn't it? - Yes, but with one hurdle. For most young Indians it could be difficult to invest Rs.15,000 every month. We’re in our early stages of our career, of course it's going to a bit tough!  

But we do have Gringotts like magical option called Dinero Investment Plan or the DIP that does the job and comfortably so.  

Power of Compounding through DIP

The Dinero Investment Plan is based on the 15-15-15 rule of the mutual funds industry of investing, where you can start investing with as low as Rs.100 & customize the amount of investment on the go. With the power of compounding, DIP could fetch you up to 1 crore in the next 15 years with an approx. interest rate of 15%* each year.  

You can get started now by downloading the Dinero app on Playstore.

You might ask us, where does DIP invest the money in? - Exchange traded funds or ETFs

What are ETFs & Why should you totally, totally take advantage of this amazing investment product?

Well, we all know the markets can never guarantee returns, nor can any fund. But historical performances show that indices (like the Nifty 50, Nifty Next 50, BSE) give an average of 15% annualized returns over the course for 5 years or longer.  

Given that the DIP is a long-term investment plan, we selected Exchange Traded Funds (which track indices such as the Nifty 50 and closely match returns of the index) to be able to give 15% returns*

DIP is a diversified portfolio of ETFs that gives you the best optimal returns – for you to be able to build and protect your wealth. The DIP invests in four asset classes – Equity, Debt, Gold and International Equity

Equity based ETFs try to maximize your returns in your initial years, while Debt and Gold protect your returns from any shocks.  

Now, what are we waiting for? Christmas? - Goo download the app, start your investing journey. All the early retirement, following passion, traveling world dreams are now a reality than ever before.

*Please note this is based on historical performance. Dinero does not guarantee any future returns. The DIP and ETFs in general are subject to market risks.  

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