I have picked this story from our monthly newsletter, wherein we shared one inspiring story of a discipline and successful investment story of Rashmi, a housewife !
Her story is very special and inspiring for every individual investors, specially those who lack self motivation to save ! The story goes back to 2003 when Rashmi , Aged 26 Yrs, got married to Anuj , Aged 28 Yrs.
Anuj being a self-made man, was struggling in his initial days of Career. With a smaller salary Income, Anuj could not start with any savings habit till the Age of 35-36; due to stressful cash flows, Anuj lacked in inner motivation to save .
And with Kids coming into their life, Savings got pushed away further. So technically Anuj never focused on savings till the age of 43 years.
Contrary to her husband , Rashmi always use to save some amount from her monthly household expenses . Her inherited theory of ‘Gullak’ savings from her father, always kept her self motivated and passionate about wealth creation. She never missed the chance to create a savings opportunity from her every day purchases and other expenses , like- whenever Anuj took her for an outing, she would prefer to choose the food, place or items which are affordable; she always spent on things which were really urgent ...etc.
Rashmi always followed this wisdom of Wealth creation :
Earnings – Savings = Expenses’
On the recommendation of her father, a Veteran Mutual Fund investor, Mr Sekhar Dandi , she opened a SIP in a Midcap Fund ( name not mentioned here for legal reasons) , on 7th August 2007. Without informing Anuj, she started her monthly SIP ( Systematic Investment Plan) with Rs 2000 per month only.
The happy Surprise :
Around two months back, in November 2020, when Anuj planned to buy a new Flat of his own , he was falling short of some cash down amount to avail his loan entitlement. That was the moment when Rashmi disclosed her secret savings which was accumulated in the MIDCAP Fund SIP since August 2007.
Amazing ! Isn’t it ? What is the take away from this Case story ?
Volatility is the key to success in any SIP ( Systematic Investment Plan) : I
If you see the graph of funds journey during Rashmi's SIP tenure, you will find many ups and down moments. Such moments are called as ‘Volatility’ . Generally, investors leave the fund during such volatile times due to fear or due to greed. Rashmi was rock solid with her determination to buy units regularly ; may be because of her fathers experienced advice or may be because she was focused on savings instead of trading.
So the key learnings in this story is :
1. Don’t get into the fear or Greed trap when you are invested through SIP. It works the best when there is a degree of volatility in the price.
2. SIP works on the principal of Compounding. Longer is better !
I personally am very much inspired by Rashmi’s self motivated savings habit and disciplined investment strategy ; hence I shared this story with all my readers here to strengthen their faith and confidence towards SIP ( Systematic Investment Plan)
# Note : The Mutual fund Scheme performance shown above and the figures shown above are all real, however the actual scheme name is not disclosed due to the legal and regulatory norms .
Disclaimer : Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.