By Suresh Soni, CEO, Baroda BNP Paribas AMC
As we celebrate Ganesh Chaturthi, the festival honouring Lord Ganesha, the remover of obstacles (Vighnaharta), we are reminded of the importance of making auspicious beginnings in all aspects of life. Just as Ganesha removes obstacles and clears the path to success, we too can achieve a secured financial future by taking wise financial decisions—starting with regular systematic investments in mutual funds.
The Power of Systematic Investing: An Auspicious Beginning
Lord Ganesha holds a special place in the Hindu tradition. Lord Ganesha symbolizes wisdom and foresight and is worshipped for his ability to remove ‘vignas’ or hurdles from our lives.
One of the ‘vignas’ or obstacles many face is not having adequate finances. We must realise that financial obstacles are often a result of not following financial discipline. We need to overcome these financial obstacles by making intelligent choices.
Firstly, we need to understand that savings alone don’t guarantee financial security because the termite of inflation works day and night to reduce the value of what we save. We need to invest our savings meaningfully, if we want to create wealth and secure our financial future.
Instead of chasing quick profits through trading on tips or speculative investments, it is wiser to invest regularly in mutual funds. This approach ensures that your savings are put to work in a way that is both efficient and effective. Systematic investment plans (SIPs) in mutual funds embody these very qualities of efficiency and efficacy. SIPs allow you to invest a fixed sum of money regularly, regardless of market conditions and build wealth over time. This disciplined approach helps smoothen the obstacles of market volatility and emotional decision-making, paving way for financial stability and growth.
Listening to Professional Advice:
Ganesha’s large ears remind us to be good listeners. In the financial world, this can translate to willingness to heed to sound financial advice or consulting with a qualified financial planner/SEBI registered investment advisor. A financial advisor can help navigate the complexities of investing, ensuring that your money is managed wisely and aligned to long-term goals.
Learning from Mistakes:
Ganesha’s large head symbolizes wisdom and learning. In the context of investing, this means having wisdom to learn from past mistakes and becoming wiser investors. Many investors have experienced losses due to impulsive decisions, lack of discipline or taking too much or too little risk. However, rather than being discouraged, let’s treat these experiences as valuable lessons that show us the path to success.
Life lessons:
If we look at the Ganpati idol, we often see that the left tusk is broken. According to mythology, we understand that Ved Vyasa, the maharishi who wrote Mahabharata, wanted someone to write the story as it flowed from his mind. It was not feasible for anyone on Earth to write at such a high speed. Hence, he asked Lord Ganesha for help. Lord Ganesha agreed to help and started writing using an ordinary quill. However, the quill broke off in the middle of the dictation. Not wanting to stop, Ganesha, simply broke off his tusk and continued writing with the tip of his broken tusk instead. Ganesha’s dedication and commitment gave the Hindu tradition an epic scripture. However, with our investments, while we start our investment journey with enthusiasm, as soon as the markets turn volatile or fall, we stop our SIPs and even tend to redeem our investments pre-maturely.
Consistency and dedication can be put into action through SIP (Systematic Investment Plan). SIP can help you accumulate 1 cr in 20 years by just investing Rs 10,000 every month (assuming the investment compounds at a rate 13% every year. Assuming the same rate of return one can accumulate the same amount in 10 years, if you invest Rs 45,000 every month.*
So start your SIP today, since a delay of few years can significantly reduce your accumulated wealth. This Ganesh Chaturthi, let us honor Lord Ganesha, the remover of obstacles, by resolving to break our bad financial habits and embrace systematic investments. By starting now—regardless of our current circumstances—and allowing the power of compounding to work in our favor, we can pave the path to success and prosperity, ultimately securing a brighter financial future.
Disclaimers:
*The investment is assumed to be made in an equity scheme. The amount accumulated will also depend upon scheme selected, prevailing market conditions, view of Fund manager on the market etc.
The views and investment tips expressed by experts are their own and are meant for informational purposes only and should not be construed as investment advice. Investors should check with their financial advisors before taking any investment decisions.
The material contained herein has been obtained from publicly available information, internally developed data and other sources believed to be reliable, but Baroda BNP Paribas Asset Management India Private Limited (formerly BNP Paribas Asset Management India Private Limited) (AMC) makes no representation that it is accurate or complete. The AMC has no obligation to tell the recipient when opinions or information given herein change. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. This information is meant for general reading purposes only and is not meant to serve as a professional guide for the readers. Except for the historical information contained herein, statements in this publication, which contain words or phrases such as ‘will’, ‘would’, etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. The AMC undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Words like believe/belief are independent perception of the Fund Manager and do not construe as opinion or advise. This information is not intended to be an offer to sell or a solicitation for the purchase or sale of any financial product or instrument. The information should not be construed as investment advice and investors are requested to consult their investment advisor and arrive at an informed investment decision before making any investments. The Trustee, AMC, Mutual Fund, their directors, officers or their employees shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages arising out of the information contained in this document.
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