In a rare story of wealth and family inheritance, Narayana Murthy’s grandson has already earned ₹10 crore in dividends from Infosys at just 17 months old. This is not your typical toddler story—it’s a glimpse into how early investments and savvy estate planning can create a lasting legacy. Such a feat captures attention because it highlights the power of wealth transfer and passive income even in the early stages of life. For investors, young families, and anyone interested in building long-term wealth, this story offers valuable lessons about the potential of early asset gifting and investment strategies.
The Background: A Legacy of Entrepreneurship and Wealth
Narayana Murthy’s Influence and Inspirations
Narayana Murthy is a name that transformed India’s technology sector. As the co-founder of Infosys, he helped grow a small startup into a global tech giant. His success story inspires many young entrepreneurs and families to think big and plan smart. Murthy’s family values emphasize education, discipline, and smart wealth management. These principles influence how his legacy is being passed on to future generations.
The Infosys Stock Gifted to the Grandson
When the grandson was just four months old, he received a gift of 15 lakh shares of Infosys. That may sound unusual, but it’s a common way affluent families plan their estate. Gifting shares early means wealth can grow exponentially over time. This practice is especially popular in India, where many high-net-worth families plan their assets to benefit future generations. Such gifting also helps reduce estate taxes and simplifies wealth transfer.
Strategic Investment and Wealth Transfer in India
Over recent years, wealthy Indian families have increasingly used gifting as a tool to transfer assets. Shares of top companies like Infosys are often part of these plans. However, early gifting involves legal and financial considerations, including compliance with tax laws and proper documentation. These strategies ensure that assets are protected and grow intact for heirs.
Financial Milestones: How the Grandson Made ₹10 Crore in Dividends
Earnings Breakdown
The grandson’s ₹10 crore in dividends equals roughly ₹50 lakh annually over several years. This is based on Infosys’s dividend yield—which is the annual dividend divided by share price—and the percentage of shares he owns. Since he holds 15 lakh shares, if Infosys’s dividend per share remains steady, his earnings can keep rising as the company grows.
Timeline of Growth
His dividends started small—just a few thousand rupees—but snowballed over time. Infosys’s consistent growth, combined with regular dividend payouts, boosted his passive income. As the company expanded and increased dividends, the child’s earnings soared, demonstrating how long-term stock investments can pay off.
Comparison with Adult Investors
Most adults work hard to save and grow their wealth. But this young investor already surpasses many in passive income. His earnings show the advantage of early investments and compound interest—where small amounts grow large over time. Such a story motivates families to start early and stay committed.
The Role of Family Wealth Planning and Investment Strategies
Early Gifting and Asset Allocation
Gifting shares early can be a smart move. It introduces a child to stock investments and ensures their wealth grows alongside the market. Diversification—spreading investments across different assets—reduces risk. For example, besides Infosys, families may add real estate, bonds, or mutual funds to build a balanced portfolio.
The Importance of Long-term Investment in Stocks
Infosys’s journey from a startup to a global leader proves how patience pays off. Investing in well-established, blue-chip stocks can create lasting wealth. The key is holding on through market ups and downs, knowing that time in the market beats timing the market.
Structuring Family Wealth for Future Generations
Many wealthy families use legal tools like trusts and holding companies to manage their assets. These structures help preserve wealth and simplify inheritance. In India, estate planning can include setting up family trusts to ensure assets are passed smoothly across generations.
Legal, Tax, and Regulatory Considerations
Tax Implications of Gifting Shares to Minors
In India, gifting substantial shares can attract gift tax, but there are legal ways to minimize this. Family members often use exemption limits or gift through trust entities. Proper planning ensures tax efficiency and compliance with laws.
Dividends and Income Taxation
Dividends received from stocks are taxable, and investors must report them in their tax returns. Effective planning can help reduce tax liabilities legally—like utilizing deductions or income splitting among family members.
Regulatory Framework for Minors Holding Shares
Indian regulations allow minors to hold shares, but legal custodians oversee these holdings. The guardian manages the assets until the child reaches adulthood. This setup safeguards the investments and meets legal requirements.
Future Outlook and Lessons for Investors and Families
Potential Growth of the Investment
Infosys continues to grow as a leading IT company. If it maintains or improves its dividend payments, the child’s income could increase further. This story exemplifies how early investments in stable, blue-chip companies can generate wealth that lasts generations.
Lessons for Young Investors
Starting early offers a big advantage. Consistent saving, investing in quality stocks, and letting your money grow over years can lead to massive returns. Building a family investment culture can also turn passive income into a future legacy.
Advice from Financial Experts
Experts say that disciplined investing and early planning are keys to wealth creation. Families should consider estate plans, trusts, and tax-efficient gifting to secure their loved ones’ futures. Mirroring this story’s approach can help others build their own lasting wealth.
Conclusion
The story of Narayana Murthy’s grandson earning ₹10 crore in dividends by just 17 months old proves the power of early planning and smart investing. It shows how strategic gifting and long-term stock investments can create a lasting legacy. Families willing to start early, plan wisely, and stay disciplined can build riches that span generations. This example inspires us all to think about long-term wealth transfer and the future of Indian corporate success.