You are currently viewing The Proof is in the Pudding

My mother has been chasing me for the past few weeks to get all her medical and investment related documents sorted as she wants to file her Income Tax return. She sold one of her mutual funds last year and when I printed the statement, something caught my attention.

She started an SIP in a Tax Saving Fund (ELSS) of 2000/- from Sep’ 10 to Sep’ 11.

Investment Amount: 26000/- (13 * 2k) When she redeemed it last year, she got about 72k, (profit of 46k), return of 15%.

Key takeaways:

1. The new financial year has started, let’s not wait till the end of the year to invest in Tax Saving Funds and then opt for a lump sum investment. Lets invest through SIP.

2. Don’t wait to accumulate a large corpus: Many people waiting to accumulate a large amount before they start investing. You can start investing with as little as 500/-

3. Equity works best for the long term: Equity is like your career, you can’t judge where you will be in 20 years based on just the first year of your job. One good appraisal won’t make you the CEO and neither will a single bad appraisal make you the worst employee who ever held a job.

Leave a Reply