Investing 100% Cashback into Mutual Funds

[muk9998]

Hi guys,

I started a new experiment 2 months ago and wanted to hear your thoughts.
I use Millennia (CC + DC), SBI Cashback, and Kotak 811. Since the cashback in both cc usually gets credited to the statement, I manually take that exact amount from my bank account and invest it in Mutual Funds or Stocks.
Basically:
* Cashback to Investment: Whatever I earn in rewards, I move to my portfolio.
* Spare Change: Even if I make small side income (₹100-200), I randomly invest it immediately.

* No SIP: I don't like fixed SIPs. I prefer doing "one-time" investments at the start or end of the month, depending on my expenses.

Is anyone else doing this? How is this idea?

#gemini

 

[hender]

Hi guys,

I started a new experiment 2 months ago and wanted to hear your thoughts.
I use Millennia (CC + DC), SBI Cashback, and Kotak 811. Since the cashback both cc usually gets credited to the statement, I manually take that exact amount from my bank account and invest it in Mutual Funds or Stocks.
Basically:
* Cashback to Investment: Whatever I earn in rewards, I move to my portfolio.
* Spare Change: Even if I make small side income (₹100-200), I randomly invest it immediately.

* No SIP: I don't like fixed SIPs. I prefer doing "one-time" investments at the start or end of the month, depending on my expenses.

Is anyone else doing this? How is this idea?

#gemini

VERY Good idea 💡 👍 ✅

In longer run, you'll have good Corpus with accumulation regular.

It's same/identical strategy followed by many people.
Not by cashback but investing extra income or saving!!!

 

[Kabir_1112]

It's a good initiative. Keep continuing.
Timing is also good as the market is very unpredictable.

 

[cardio_guycardio_guy is verified member.]

Savings and investment is always a good idea but investing the cashback from credit cards may not be practical always.

Some of my opinion -
1. Cashback amount will be very small - like Rs 145/- or Rs 109/- kind of, so it is not really worth spending the time and effort to move such small amounts to MFs. If you want to invest, invest atleast some bigger amounts, not chindi small chillar paisa like this.
2. I don't even know if any MF allows putting such small amounts, the minimum SIP I have seen is 100. Still, to see any meaningful returns, or to make any tiny needle movement in our life, wealth etc, we need to invest more amount. Honestly speaking, you are wasting time doing this, unless the amounts are atleast 1000 per month or so.
3. For cashbacks like Amazon pay balance, neu coins, scapia coins etc, it may not be meaningful to assume 1 Rs for 1 coin and then invest that amount. It could work for statement credit but not for other types of cashbacks.
3. Instead of this, focus on work, and invest any significant amount like 5k,10k, 50k etc. Sorry to say, but don't unnecessarily complicate things in life.
(Just my personal opinion, no offence meant)

 

[muk9998]

Cashback amount will be very small - like Rs 145/- or Rs 109/- kind of, so it is not really worth spending the time and effort to move such small amounts to MFs. If you want to invest, invest atleast some bigger amounts, not chindi small chillar paisa like this.

Thanks for advice, sure isko change kaarunga..

you are wasting time doing this, unless the amounts are atleast 1000 per month or so.

monthly 5K Cashback Accumulate hota.
From various cc,dc.

I am not including Amazon Pay and neu coins in this.

invest any significant amount like 5k,10k, 50k etc

Already 5K monthly Fixed Amount Hai jo yeh start karne se pahle dalta aaya hun

 

[hender]

Wonderful and practical guidance, as always !!
Partially different on one point 👉

Practice of regular saving + investment + Longer Term is a very good practice (A 500/1000 PM regular SIP/RD for 20-30-40 years) is way way better than doing nothing !!!

 

[fradela]

Savings and investment is always a good idea but investing the cashback from credit cards may not be practical always.

Some of my opinion -
1. Cashback amount will be very small - like Rs 145/- or Rs 109/- kind of, so it is not really worth spending the time and effort to move such small amounts to MFs. If you want to invest, invest atleast some bigger amounts, not chindi small chillar paisa like this.
2. I don't even know if any MF allows putting such small amounts, the minimum SIP I have seen is 100. Still, to see any meaningful returns, or to make any tiny needle movement in our life, wealth etc, we need to invest more amount. Honestly speaking, you are wasting time doing this, unless the amounts are atleast 1000 per month or so.
3. For cashbacks like Amazon pay balance, neu coins, scapia coins etc, it may not be meaningful to assume 1 Rs for 1 coin and then invest that amount. It could work for statement credit but not for other types of cashbacks.
3. Instead of this, focus on work, and invest any significant amount like 5k,10k, 50k etc. Sorry to say, but don't unnecessarily complicate things in life.
(Just my personal opinion, no offence meant)

Well said. We can't invest all our money. We have to enjoy our life too.

SIP only small amount like 100, 500.

When it comes to Lumpsum minimum 5000.

I too don't like SIP, I always go with lumpusm investment every month.

 

[ashwinikumar900]

Hi guys,

I started a new experiment 2 months ago and wanted to hear your thoughts.
I use Millennia (CC + DC), SBI Cashback, and Kotak 811. Since the cashback in both cc usually gets credited to the statement, I manually take that exact amount from my bank account and invest it in Mutual Funds or Stocks.
Basically:
* Cashback to Investment: Whatever I earn in rewards, I move to my portfolio.
* Spare Change: Even if I make small side income (₹100-200), I randomly invest it immediately.

* No SIP: I don't like fixed SIPs. I prefer doing "one-time" investments at the start or end of the month, depending on my expenses.

Is anyone else doing this? How is this idea?

#gemini

Any type of investing is a good investment, regardless of the amount and source. So keep it up, it will build you a habit of investment, which is the most important thing.

 

[Ak Singh]

Well said. We can't invest all our money. We have to enjoy our life too.

SIP only small amount like 100, 500.

When it comes to Lumpsum minimum 5000.

I too don't like SIP, I always go with lumpusm investment every month.

But you can't get finacially free from these amounts.
You have to increase your investment amount.
And for increasing investment amount, there are two options
1. Increase income or 2. Cut the expenses
From 200,500 you can't even accumalate enough amount, Now some will say but in long term 10-15 years it will be bigger fund but then what would be the value of this amount in future after adjusting inflation, not much.

 

[brightknight]

I used to follow this strategy for crypto, but wish I could have invested in an index fund.

 

[akshayhs]

2. I don't even know if any MF allows putting such small amounts, the minimum SIP I have seen is 100

Navi mutual funds let you invest as low as 10.

 

[Karan.]

Hi guys,

I started a new experiment 2 months ago and wanted to hear your thoughts.
I use Millennia (CC + DC), SBI Cashback, and Kotak 811. Since the cashback in both cc usually gets credited to the statement, I manually take that exact amount from my bank account and invest it in Mutual Funds or Stocks.
Basically:
* Cashback to Investment: Whatever I earn in rewards, I move to my portfolio.
* Spare Change: Even if I make small side income (₹100-200), I randomly invest it immediately.

* No SIP: I don't like fixed SIPs. I prefer doing "one-time" investments at the start or end of the month, depending on my expenses.

Is anyone else doing this? How is this idea?

#gemini

I am trying to do this.
My Goal is for a 2l Manual Investment in Equity. Still not able to achieve it for obvious reasons.
Long way to go.

 

[panchabhut]

I donate 50% of cashback to an NGO and invest remaining 50% in Gold ETF. Normally do this on quarterly basis.

 

[HumorSimpson]

Not by cashback but investing extra income or saving!!!

Well said . Cashback amount will be small to build any big corpus or reasonable financial goals.

 

[sparkit]

Hi guys,

I started a new experiment 2 months ago and wanted to hear your thoughts.
I use Millennia (CC + DC), SBI Cashback, and Kotak 811. Since the cashback in both cc usually gets credited to the statement, I manually take that exact amount from my bank account and invest it in Mutual Funds or Stocks.
Basically:
* Cashback to Investment: Whatever I earn in rewards, I move to my portfolio.
* Spare Change: Even if I make small side income (₹100-200), I randomly invest it immediately.

* No SIP: I don't like fixed SIPs. I prefer doing "one-time" investments at the start or end of the month, depending on my expenses.

Is anyone else doing this? How is this idea?

#gemini

Exactly what I am doing for past few months.

What i do is transfer all the cashbacks ( DC + CC) to my Jupiter account. And in Jupiter account I activated daily SIP. Which means if the account has the required SIP amount balance in it, it will automatically debited next day morning.

I am currently at 44k just by saving hundreds 🙂

 

[blacktiger]

tracking cashbacks and investing large number of small values might be cumbersome. instead you can just invest x% of your income or savings on it instead each month.

 

[Ram1]

I would say this is an excellent idea.
No amount is small.
Save/invest whatever you get as extra.

Lets calculate cashbacks per month according to OP
Hdfc millenia dc - 400
Hdfc millenia cc - 500 ( considering 50% of the cap 1k)
Sbi cb cc - 2000
Kotak 811 super dc - 500

So easily 3400 per month. Either u can invest this amount or pay health insurance every month.

 

[cardy]

I would say this is an excellent idea.
No amount is small.
Save/invest whatever you get as extra.

Lets calculate cashbacks per month according to OP
Hdfc millenia dc - 400
Hdfc millenia cc - 500 ( considering 50% of the cap 1k)
Sbi cb cc - 2000
Kotak 811 super dc - 500

So easily 3400 per month. Either u can invest this amount or pay health insurance every month.

And if you can be consistent to keep it deceplened to grow for 30years,
It's 1cr.

 

[Lynx]

And if you can be consistent to keep it deceplened to grow for 30years,
It's 1cr.
View attachment 115253

Par 26 me to duniya khatam hai 😢

 

[Ak Singh]

And if you can be consistent to keep it deceplened to grow for 30years,
It's 1cr.
View attachment 115253

Dude, but what would be your purchasing power with 1 cr after 30 years take inflation into consideration.
Firstly you gave to understand this.
I am not saying you shouldn't invest this amount but you have to increase gradually.