Most of us cannot understand using time as an important agent in creating wealth. It takes a mathematician to appreciate that. Assuming you had bought good equities or invested in growth plans of good funds for the past say 20 years you would have got fantastic returns. It does not seem the help people EVEN if you give them examples of a Rs. 2000 per month SIP turning to Rs. 1 crore over a 18 year period.

Why does this happen? because we underestimate the power of TIME.

What we remember from the past is what our mind allows us to remember. So all the painful experiences are nicely edited and presented to us. We learn to beautifully blame others, and we remember events EXACTLY the way we want our brains/mind to remember the event.

Despite our own past experience and knowing that we cannot see the future, we claim to think that we can. So we end up choosing stocks, fund houses, portfolio managers on some hunch rather than a mathematical / logical base.

We keep reading “the past is not an indicator of the future” and repeatedly ignore that. We think only a black swan event can derail our retirement plan. Actually one mistake of expecting to die at 79 – if it becomes 97 it can completely, completely de rail our retirement plan. We think our brain will work perfectly till the last day we live. How optimistic!!

We have to use time as an ally, not as a foe. We need to understand that we do not understand the future.

Is mortality the reason we treat time as an enemy? Remember your body dies, your soul and your investment live on.

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  1. Sir ,in above example of rs.2000 turning into rs.1 crore in 18 year requires app. cagr of 29.73% , will it be safe to assume such high return while investing for a goal or we should settle between 12-15% return & consider more as luck.

  2. this is history, it has already happened…CANNOT ARGUE WITH future what will happen your guess is as good as my great grand daughter’s as and when she is born, if at all.

  3. Well said Sir!

    “Past is not an indicator for the future” – All factors remaining the same, I would definitely bet on a fund or stock that has consistently performed in the past rather than one with no or very little past record. Past can never be ignored!!!

  4. Sir , therefore i believe in one of your fav line “just do it” , i assume 12% as my return , more than that is luck , it will help in achieving goal early.

  5. Hi Subra,

    This is Pradeep from website. I recently came across your site / blog and I was very impressed with the content and research you post here. I couldn’t stop reading.

    Thanks for your efforts to educate investors and sharing your learning and observations.

    Keep up the good work and feel free to drop me an email. I’ll keep visiting here for more.


  6. sir,
    excellent content on this site compell me to visit it whenever i switch on my computer.
    max possible saving for max possible time can look after anything within our reach, rest GOD will take care.
    only question is where to invest these savings.
    heard a lot and lot about equity and was fully convinced, till few days back when i happen to read article “Dollar Cost Averaging aka SIP analysis of S&P 500 and BSE Sensex” on ‘’.
    and that is actualy not an opinion or article, BUT HARD FACTS calculated mathematicaly. what they bring out is one aspect which is missed in “EQUITY BEST” debate and is also not brought out (unwittingly, of course) by the author is that ‘GOVT BONDS CAN NEVER BE NEGATIVE OR BELOW INFLATION where as equity can some time be, even SIPs in 15 yr span'(of course tax treatment for debt and expences for equity is not catered for).
    your considered view will help everyone

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