Mutual funds are a simple, systematic, proven way to create wealth.
Investing, tracking and garnering returns are most accessible in Mutual funds.
Mutual funds are an efficient, regulated system of wealth creation.
A mutual fund is a vehicle to invest in. Your money is managed by professionals called Fund Managers.
The following image shows the process of investing.
We have helped individuals and families invest in mutual funds and create wealth for themselves. Our clients have created wealth and enhanced their lives by investing judiciously for years in mutual fund schemes.
Here are two of the many success stories we’ve helped write.
Ms Gunjan started investing in MFs in 2007. She invested via SIPs till 2017. Then, in 2017, she became an entrepreneur. Since then, she hasn’t been investing incrementally – as shown by the blue line. She stayed invested for 15 years. The result of which is seen in the chart below.
The green line shows that her investment multiplied 3 times at 14% annualised returns – 1 crore has grown to 3 crores plus by simply staying put.
Next, consider the case of a doctor who lives abroad. His name is Mr Nikheel. He invested monthly via SIPs for the first 5 years. His money is compounding beautifully after that, as seen in the green line. His investment of Rs. 27 lakhs has grown 4 times to Rs. 1 crore in 13 years. This is proof that it pays handsomely to stay invested in good schemes. And that the perceived risk taken is lesser than direct equity.
What works in investing is a few essential things to always keep in mind when creating wealth for yourself and your family.
Don’t complicate wealth creation by choosing complex products or new age investments that use technology to drive wealth etc. Remember what Warren Buffett said, “Investing is simple, but not easy.”
Ascertain your goals – e.g. healthcare, retirement, education etc. These goals can be attained simply and efficiently by investing in mutual funds.
Don’t worry too much about the cost you pay for creating wealth. It would help if you worried more about how much you want to make.
Don’t ignore the role of Finance Professionals. We know a few examples of wealth destruction, those who betted on their capabilities, started on their own and lost their way (and money).
Investing is just not reading the pink newspaper in the morning, sipping your cup of coffee, and saying I will allocate the money to what I have read on the news. Stocks are not for everyone. You can’t track and plan strategically.
There is far more money given to MF managers, whose responsibility it is to manage money with care and generate long term returns. Trust in the structure and process; results will follow.
The time you spend on your profession will help you earn more, which can compound faster, than worrying about the best investment. Not many understand this simple secret.