Small investments make market sense: Strategy to build corpus steadily

An asset-allocation approach will help you in not taking an outsize risk

Investors often say the markets have done but well they do not see significant gains in their portfolios. If a portfolio is small, then the returns cannot be big.

A 20 per cent return on Rs 200,000 is Rs 40,000 and the same on Rs 2,00,00,000 is Rs 4,000,000.

Does that mean you must invest big amounts to feel content? Not necessarily.

That’s where compounding comes to your rescue. By investing small amounts consistently, you can accumulate a big corpus. It is simple math, but we don’t relate to it as easily.