Mutual Funds Kyun Sahi Hai ?
Most people think they are either too expensive, complex or just plain boring.
But they're actually the best way to create wealth for your future!
What's your reason for not using mutual funds?
I don't have enough money to invest
Everyone should invest a little bit of their money. You can get started with as little as ₹100.
I prefer FDs because they are safe and simple
This safety & simplicity comes with a heavy price. Its' hard to beat inflation with FDs. You need something more.
I ❤️ stocks because “Risk hai to Ishq hai”
Unless you trade stocks for a living, sticking to index funds will generate better returns over the long duration for most people.
Tiny SIPs create an Ocean of Wealth
Mutual Funds are extremely flexible. You can start with as little as ₹100/month and stop whenever you like. Don't think it matters much? Consider the case of the
Lucky 👶🏽 Baby
Lucky was born yesterday. Today, Lucky's parents started a SIP of just ₹100 every month in a low cost index fund that tracks the Nifty 500.
When lucky turns 22 and gets his first job, he continues the tradition and keeps investing ₹100 every month till he turns 60. How much do you think Lucky's mutual funds are worth?
A Whopping ₹1.8Cr1
Lucky invested a minuscule ₹72,000 over 60 years and ended up with ₹1.8Cr which is ₹4.9L in real value (due to inflation). That is a 7X return on his investment.
It is important to invest, even if it is ₹100/month. The cost of delaying is very high. As they say
“You Snooze, You Lose”
1 CAGR: 13.4% • Inflation: 6.14%
FDs cost Suresh ₹1.33Cr*
Suresh had tried mutual funds and lost money. He had invested when markets were booming and sold in six months when they crashed.
His friend Ashok showed him how if he had invested for over 7 years, he would have made more money than investing in fixed deposits even though markets crashed 50% just after he invested
Ashok also showed him that if he had invested ₹1000 in a Fixed Deposit 20 years back and redeemed right before the pandemic, he would have received ₹1967. The same ₹1000 grew to ₹3297 in an equity index fund. The difference was ₹1330 for every ₹1000 invested.
Suresh actually had ₹1Cr in Fixed Deposits, which meant Suresh lost ₹1.33 Crores in the last 20 years!
Suresh was shocked but there was no disputing the numbers. Suresh resolved to put his long term savings in equity Index Mutual funds.
*Based on a true story. Coming soon to a theatre near you.
Boring is Better
Imagine playing poker for the first time with professionals. You are likely to lose your shirt. Hopefully they will let you keep your pant.
Picking individual stocks is similar. Warren Buffett, the greatest investor of all time recommends low-cost index investing for most people. Big Bull stories make us believe that with stock trading we can also get rich quick. The reality is very different.
Stop gambling with your hard earned money 🎰
Don't try to beat the market, instead meet the market
Invest for the long term with low-cost equity index mutual funds.