Many mails, smses, calls saying ‘I owe you a treat my portfolio is doing well’. Some who have not called are the ones who still have not seen their statements. So those who invested from say 2010 onwards are now in decent money and better than bank rates. I hope they can show it to their parents who did not like this product!

Let me start by saying that many of these callers / communicators may have been skeptical when I asked them to start a sip. I have been pushing SIPs as the ONLY sensible method of creating wealth in the long term especially for the kids that I am talking about. Now that they are in the money (thank you God) they are happy and many of them want to do ONE MORE SIP.

So here is a note for them.

1. The market did not go up because YOU did a SIP or because I told you it would. Market went up as a normal sequence.

2. Market will go up and down but you should continue your SIP during good times as well as bad times.

3. 80% of the readers on this blog are under the age of 30 years. So if you do invest all your life, you have another 25 years of investing.

4. If you will be a BUYER should you be rejoicing that the market is up OR feeling bad that the market is getting more EXPENSIVE? Ponder over it. There is nothing to do, but please do ponder.

5. I did not know when exactly the market would go up. Neither do I know when it will move parallel to the Y axis or when it will move parallel to the X axis. Nor its direction. HOWEVER TO MAKE MONEY YOU NEED NOT KNOW THAT.

6. You took the risk, you put in the money, YOU GOT THE RETURN, i HOPE you realize that such sensational returns which you got are not sustainable in the long run.

7. Soon as ‘n’ increases the returns will look more earthly. Just saw somebody with a 200% P.A. appreciation in one midcap fund.

8. Today it is possible to start a SIP with an amount like say Rs. 1000 and increase it by Rs. 500 every year (or 6 months!). This is much better – because the whole process is AUTOMATIC….

those who have not yet started investing, this is a good time and place to start…if in doubt ask will answer…

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  1. As Mr. Basant ji mentioned in his book, There is always bull run in market for certain scrips. SIP in good mutual fund will help us. I would rather recommend to have index fund SIP also….

  2. Hello Sir,
    I am 38 years and have decided to enter the world of mutual funds via equity funds although i must be 10 years late.I now realize that like real estate there is no good or bad time to invest in mutual funds if one looks at a 15 year horizon (even safe schemes like ppf is 15 years)

    Does it make sense to invest rs.2500 each as SIP in 2 equity funds(eg:HDFC top 200,franklin blue chip) or just invsest rs.5000 in one equity fund


  3. Sip from 2010….Thank you. I was one of those who had no idea about equity/ risk etc. read subramoney and learnt…:-)

  4. Dear sir,
    I tend to stretch SIP to “Selective Investment Program” only when the index PE is inexpensive. Why not SIP in an arbitrage fund when the PE is more than 20 and in a diversified equity when the PE is less than 20? Whatever collects in the Arbitrage fund SIP can be invested as a bolus in the diversified equity fund when it progressively drops and touches 16 or so?

  5. Thank you Sir, coz of u i finally started SIP yesterday and tried something new than real estate. but since morning m planning to get directly involved in stock market too…is it advisable??

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