Story of 2 SIPs
One of our investors who started SIP with us in Sep 2024 recently asked my team why he is not getting good returns on his SIPs since the time he started with us. However, in his other SIPs he is getting good double digit returns.
Later my team shared the investor’s concern with me and I asked them to schedule my call with him and also to ask him to share details of his other SIPs in which he is getting good returns.
Once I looked at his portfolio and then over a call I asked him, “When did you start the SIPs you shared?” He said, “I started them in 2018 and have been continuously investing in them.” I said, “Yes, I can see that. Then what is the concern?”
He said, “Gurpreet, since I started SIPs with you also, I never saw my portfolio positive, forget the returns.”
I said, “But you started in Sep 2024 with us, right?” He said, “Yes.”
I replied, “Then why compare both SIPs? Both SIPs have their own journey. It is like you have two kids, one is 7 years old and one has not even turned 1, and you are asking Gurpreet why my 1 year old kid is not running like my 7 year old kid?”
He laughed and said, “Got your point, Gurpreet. Let us wait for him to grow more, then we will discuss.”
This is not just with this investor, it is with most investors. Despite the awareness of financial education, these basic logics of how equity markets and mutual fund SIPs work still need a lot of awareness among investors. That awareness will give them the confidence to take rational decisions.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services Pvt. Ltd. Where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.