‘Bonus Bonanza’ is a pure wealth creation product from RichVik Wealth which aims to invest an individual’s yearly salary bonus’ directly into best investment avenues. Generally, a salaried individual in India has his/her expense budget set as per the fixed component i.e. their annual CTC. This product plans to invest the variable component of an individual’s earnings as this is always something ‘extra’ which the individual can afford to keep aside for investment/long term goals.
In India, bonus for a year is typically a month’s salary i.e 8.33% (1/12) of what an individual makes in the previous year. It also depends on the work profile. There are a lot of sectors where the bonus is as high as 25%. This is a product which can be customized differently for individuals working in high-bonus payout profiles and linked to their various life goals as well. Alternatively, since an individual is always aware of the bonus which he/she will be making in a particular year, converting the same into monthly investments will help with a better cashflow management and maximize returns as it will be compounded monthly in case of SIP investments.
We at RichVik believe that this extra income if invested diligently every year for a time horizon of 20-25 years can result in a substantial corpus which can be a sizeable fund and help the person take important financial decisions later in life including being a retirement fund as well. In the below table one can see that one can easily become a crorepati by investing the bonus amount consistently and intelligently.
Note: The returns are annually compounded at a rate of 12%. However, equity mutual funds have potential to generate more than 12%. Many funds have given between 15-19% in a rolling period of 5-7 years. Thus, we have taken 12% on a conservative basis.
To understand more on the topic as well as to start investments please feel free to contact us: