How to build wealth at 16% per year? This founder shares a 'steady' example of Indian govt's 87x growth
, founder of financial education platform Wisdom Hatch, has shared a data-backed breakdown of how the Indian government has quietly built wealth from stock market activity—compounding returns at nearly 16% annually over the last two decades. He says retail investors can learn from this model instead of relying blindly on mutual funds.
Government earnings grew 87x since 2004
In a LinkedIn post titled 'Wealth is built silently,' Shrivastava compared the Indian government's income from stock market-linked taxes in 2004 and 2025.
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Securities Transaction Tax
(STT): ₹823 crore
Stamp duty: ₹80 crore
Capital gains: negligible
Total: ₹900 crore
In 2025:
STT: ₹50,000 crore
Stamp duty: ₹8,000 crore
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Capital gains: ₹20,000 crore
Total: ₹78,000 crore
This increase in revenue translates to a compound annual growth rate (CAGR) of 15.7%, Shrivastava noted.
'Wealth is built silently. Indian government is a prime example,' he wrote.
Most mutual funds underperformed
Shrivastava used this comparison to highlight how retail investors may be missing out on smarter strategies.
'Retail investors poured money like crazy into Mutual Funds. But, 95% of Mutual Funds in the same period have underperformed these returns,' he said.
He cautioned that many investors are being steered toward mutual funds as the default option, without questioning their actual performance. 'Of course, you are being convinced that Mutual Funds are the best,' he added.
Retail investing continues to rise
Retail participation in Indian markets has surged in recent years, with millions opening demat accounts and increasing investments in mutual funds, especially through systematic investment plans (SIPs). However, concerns about returns, transparency, and fee structures persist among financial experts.
Shrivastava's remarks add to ongoing conversations around how retail investors should assess long-term returns, fees, and the narratives promoted by financial institutions.
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