 |  | | | Dear Kundapur Govardhana Kini, | | It is not surprising that disciplined investing evokes the occasional yawn. One reason could be that anything which is serious, repetitive and austere is bound to evoke a yawn. So why not 'investing' as well? | | Yet there are those who invest in a disciplined manner. And that's what used to fascinate me - that two people can be so vastly different. One person finds stories of the benefits of investing to be like a Moral Science class, while another person thrives on it in such a way that it seems like the act of investing is like a watching a thrilling movie. And then of course there are those who have found the best way out. They have understood how simple and useful financial planning can be. | | In my case too, there was this one moment that turned me into an investor. I heard a little story that was my turning point. Before I heard the story, I too would perpetually postpone making an investment. Today I feel like sharing the story with you. | | This is a story I heard about Lata who lives in Madurai in Tamil Nadu, in a small house with a Neem tree in front. The big thing about the story is about how Lata gifted her husband a car. By the way, Lata is and was a housewife. | | But this is how she did it. | | When she got married, she opened an online share trading account. She then bought shares with all the money they had got as wedding gift. And further, then from the family budget, she started saving Rs. 2,500 every month, since August 2004. This she would put in a Systematic Investment Plan (SIP) - a wonderful way of being disciplined, without being disciplined! (To understand SIPs better, click here). | | In the next 5 years, Lata's SIP became Rs. 2,21,436*. And one day, when Ramesh, her husband returned from work, he saw a brand new car under the Neem tree. It was their wedding anniversary. For his part, he gifted her a sari and a dinner. And she gifted him the car! | | That investing is something that requires big sacrifices to be made, is one big myth, I must say. Actually, it requires a really tiny step and then one just has to benefit. It is the easiest way to have money. Even earning money is more difficult. | | | Discipline and Time | | Return Rate | 5 Years | 8 Years | 10 Years | | 12.00% | 2,04,174 | 3,99,818 | 5,75,097 | | 15.00% | 2,21,436 | 4,59,103 | 6,88,043 | | 18.00% | 2,40,537 | 5,29,301 | 8,28,220 | | 20.00% | 2,54,396 | 5,83,222 | 9,40,238 | | | SIP Amount Rs. 2500/- | | | Or look at it this way. Let us say you are thinking of buying a car priced at Rs. 6 lakhs. There is a simple way to buy a car of Rs. 9 lakhs instead without shelling out Rs. 3 lakhs more. But this story, I will share next time! It's a lot for today. | | Meanwhile, I suggest you click here to see what returns Mutual Fund Schemes have been giving in the past few years. There are over 2,000 of them that we have covered. What's more, we even help you choose the ones that will suit you. And you can choose to invest lump sum or invest in a SIP like Lata, in some scheme of your choice. All at the simple click of button - completely online! Mutual Funds, as you may be aware, are best bought online because you get a huge choice and transparent data on their performance in the past. You also get a third party independent rating of the schemes on offer. | | So go ahead and help yourself. | | And don't hold back on buying the things you desire. Indulge and enjoy! The 'moral science' kind of investing can wait. | | With best wishes and regards, | | Vineet Arora | | Head - Products and Distribution | | *Based on 5 years annualised returns of Equity Diversified Funds. | |  |
