Multibagger stock ideas: How I Turned 1 Lakh into 3.5 Lakhs Using Tax-Free Smallcase Investments in 2025

 Back in 2020, I was obsessed with penny stocks. I wanted to double my money overnight. Instead, I lost over 2,00,000rs and gained a lifetime of regret.

 That failure taught me something crucial:

Quick profits vanish fast. Long-term planning creates wealth.

By 2022, I had discovered a smarter way — Smallcase investing, backed by real themes, not random hype. I started small amount of 1 Lakh — and promised myself I’d stick to it for 3+ years.

 

 My 3-Year Smallcase Journey (2022 to 2025)

Here’s how I invested and what I followed:

•  Initial investment: 1,00,000rs in PSU + ELSS smallcase
•  SIP: 5,000rs monthly via AutoInvest
•  Reinvested dividends
•  Selected Smallcases with long-term themes (Dividends, Public Sector Growth)
•  Stayed consistent through market dips

By June 2025, my total investment was  RS2.5 Lakhs and the portfolio value had grown to RS3.5 Lakhs — tax-free!

 

 

How I Paid Zero Tax on the Gains

Most people focus only on returns — but ignore tax. I did the opposite.

Here’s what helped me avoid tax legally:

 

1. Held all investments for more than 12 months – qualified as Long-Term Capital Gains (LTCG)
2. Gains under 1 Lakh per financial year = tax-free under current LTCG rules
3. Invested through ELSS-based Smallcases – claimed 1.5L deduction under Section 80C

 

Net result? I got returns AND saved tax.

 

Best Smallcases for 2025 (For Tax-Free Investing)

Here are a few Smallcases you can explore:

• ICICI Prudential ELSS Tax Saver Smallcase – Great for salaried investors
• Dividend Aristocrats – For passive income and safety
• Smart Beta PSU Revival – Value-based and momentum driven

 

 Note: These are not stock tips. Always review holdings and understand the theme before investing.

 

Final Thoughts

If you're tired of gambling in penny stocks and chasing overnight success, start thinking long term.

Smallcases helped me build wealth steadily. And by staying invested smartly for 3+ years, I didn’t just grow my money — I kept it tax-free.

Discipline + Smart Allocation = Real Wealth.

 

Disclaimer: This is my personal experience and not investment advice. Please consult a SEBI-registered advisor before investing.

Piyush Sharma

Qualifications: MBA (India), MBA (Australia), Master of Professional Accounting (Australia).

18+ years in the Indian stock market and running this website for 15+ years. Founder of PS International Group and Hamarijeet.com — popular for study-visa guidance, career help, government schemes, jobs and digital product updates.

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