Data suggests that over 50% of HNIs are unable to remain invested for even two years. This factoid made me think about something I wrote a few months back on Do Nothing Investing.

I remembered a couple of our client stories – build on this philosophy, or they never bother to change the allocation. Do Nothing Investing has worked in their favour. Let’s see how.

Case 1 – Money grew 11 times in 18 years. With XIRR @ 14.85%. A blessing in disguise, client moved cities, and this money remained untouched to deliver these phenomenal returns.

Case 2 – A NRI invested a chunk of money and left it to compound on its own. Interesting take, he believes in investment and is not worried about changing for sake. The result is an XIRR of 13.85%
Case 3 – Software professional turned Entrepreneur invested gradually for years and allowed money to multiply as she was busy with new pursuits. She keeps an eye on her investment, but her calculated non-action bias helped tremendously to get 13% XIRR in 16 years. 1cr investment has become 3 cr.
These cases are good examples of do nothing investing. As you see in the graph, like everything else, in March _ April 2020, Covid hit the market so did these portfolios. They stayed put into getting the handsome double-digit returns.

What these cases demonstrate is that the techniques for wealth creation are as simple as they come. As consistent as they have been. From ‘buy right, sit tight’ to ‘fill it, shut it, forget it’, the list goes on. One theme is all pervasive—do nothing.

How does this even work? Well, it works like this—equity markets are volatile in the short term, but they will move upwards over time. Doing nothing for 25 years can make you quite rich. Of course, you must invest first, and regularly.

“It’s awfully hard work doing nothing,” said Oscar Wilde. How true, especially when it comes to nurturing investments. 

It’s a tendency to react or act on your money with news or when the fund is in a downturn that can prove harmful. Our over-exuberance cuts the cycle of compounding most of the time. The attitude to stay put and do nothing is one form of – Peaceful Investing. Are you ready to adopt it?

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