How I beat NSE – NIFTY in 41 Months

Dear readers,

This is an experiment made by me with Indian Rupees 360,000.

360,000 INR = 6624 USD when I started this experiment During the First week of January 2013.

As per the latest INR to USD conversion rate 360,000 INR = 5386.19 USD.

Objective

With 360,000 INR as investment with 36 to 42 Months of duration I need to beat NSE-NIFTY benchmark Indices using a bank term deposit and My 10 mutual funds.

Disclaimer

This blog post describes my own experiment. I am not a qualified financial adviser. Please do your own research and apply your own knowledge before you attempt my methods described here. I am not affiliated with any Mutual fund companies or Banks and I am just a customer to them.

The Method

On January 2nd 2013, I opened my savings account with State Bank of India ·
on January 3rd 2013, I made an annuity deposit of INR 360,000 · SBI Annuity deposit would pay me back INR 11,400 during the first working day of every month (starting from February-2013 to March-2016) ·
The return on investment (ROI) of this annuity deposit is 14% in 36 months (3 years) OR 4.66% per year.
Instead of this Annuity deposit, if I kept my money in Savings account the ROI would be 4% per year.
From the INR 11,400 that I received from the SBI annuity deposit, I invested them in 10 mutual funds through SIP route (Systematic Investment Plan) of INR 1000 each.
Total investment period 41 months, Total Investment was INR 410,000.
After 41 months (As of today August 19th 2016) my portfolio value is INR 751,705.
My profit As of today August 19th 2016 = ((751705-360000)/360000)*100 = 108.81% ·
The CAGR (Compound Annual Growth Rate) of My investment in this method from February 2013 to August 2016 = ((((751705-360000)/360000)*100)/41)*12= 31.85 % ·
The CAGR of NSE – NIFTY from February 2013 to August 2016 was 9.96% · Please refer the Data sheet derived from NSE website
Screenshots from my Portfolio :

I beat NIFTY CAGR by 21.89 %