Sneak Peek into the Mind of an SIP Investor

Note: The below article is meant for non-SIP investors to help them stay invested.

About a month ago, after being convinced by his uncle, who is a dedicated believer of Systematic Investment Plans (SIPs) and how one could generate wealth in the long run by planning financial goals, Karan a 25 year old computer engineer started investing in SIPs. Below is Karan’s excerpt from his journal on how he went about his investment. Karan started off by investing in an equity SIP of Rs. 2,000 in an XYZ Fund at the age of 25 after completing 3 years of his career.

Today I started my first SIP investment of Rs. 2,000 in XYZ Fund. Though I could have started a little earlier with my first paycheck 3 years ago, it feels so good to start saving diligently thanks to my uncle who also invests in SIPs. If it hadn’t been for his good sound advice on how to take care of my finances and on saving right now towards my future goals, I would have squandered all my money and surely regretted. Today the markets stood at 36,858.23. That’s pretty awesome! ☺ He also advised me to invest in Quantum Mutual Fund but I didn’t as they kept talking about long term investing….Who needs that?!

WHOA!!! Today I woke up to news of markets soaring high. It’s up by 352 points!!! Am I dreaming? My equity SIP must surely be doing well thanks to my uncle for encouraging me to start investing in mutual funds as early as possible. I hope with this jump in markets, I’ll be able to gift my sister a wedding present in the next 8 months – a beautiful necklace that she’s been eyeing for a very long time.

Today I witnessed the markets tank by a whopping 84 points! Seriously! I haven’t been too happy one bit with this kind of news. ☹ WHAT SHOULD I DO??? Should I stop my equity SIP or continue investing? In the meanwhile, Quantum Mutual Fund sent me an e-mail. They are India's first dedicated, direct-to-investor mutual fund house that offers 9 simple and easy-to-understand products by focusing on ethics, integrity and transparency and on doing what's right for their investors. They advised me to ignore the market noise and that I should continue investing in my equity SIP nonetheless. Let’s wait and watch.

Today has been the worse day of my life! Markets nose-dived by 356 points! I called up my RM (Relationship Manager) and stopped my equity SIP immediately. Enough of tension it has given me. I can now sit back, relax and not take on any more worry as I won’t lose a single rupee from now on.

OH NO! Did I do the right thing by stopping my equity SIP? Markets seem to be back on track. 391 points up! Hmmm…But I think it’s better to be safe than sorry. Who knows, markets may tumble again!

I was right! The markets fell today by 224 points! My decision to stop my equity SIP was indeed a very good decision. Just the other day I was contemplating on investing more money in another equity SIP in Quantum Mutual Fund. PHEW! That was a close call.

OMG! 330 points up! Funny how the markets behave and play with your emotions; when I stop investing they do well; and when I’m investing, they tumble. Quantum Mutual Fund was right in advising us not to worry and stay invested irrespective of the market noise. I called up the RM at Quantum Mutual Fund and started a new equity SIP of Rs. 3,000 in the Quantum Long Term Equity Value Fund . It was quite an easy process by investing online with them in just 3 simple clicks. I just had to fill in my – 1) Identity Details 2) Personal Details and 3) Investment Details by visiting their Invest Online portal and voila! No headache of paperwork, no signatures required and no standing in long queues whatsoever. Thanks to their newsletters, Quantum Mutual Fund has gotten me back on track by doing the right thing of staying put.

Today was my uncle’s birthday and so I took him out for a sumptuous lunch. I shared with him my dilemma and what I did and he immediately told me off for stopping my equity SIP too soon. He, being an ardent SIP investor for nearly a decade, stated that he remained invested by staying put and benefitted from the power of compounding by investing regularly with either more units when the markets were low and less units when the markets were high. Plus he kept telling me that I shouldn’t have been checking the markets too often and let my SIP work its magic. ☹

So to end this...

If you invest regularly over months, years and decades, you benefit from a volatile market. Through a time-proven investment technique called rupee cost averaging, you invest a set amount every week, month, or quarter, regardless of how the market is doing. Remember to not lose your nerve during market fluctuations and benefit from the power of compounding i.e. the interest you will earn from your invested amount will be re-invested, and thus increase your principle amount. Stay Invested!

Disclaimer: The figures mentioned above are for illustrative purpose only.

Name of the Scheme & Primary Benchmark	This product is suitable for investors who are seeking*	Risk-o-meter of Scheme
Quantum Long Term Equity Value Fund An Open Ended Equity Scheme following a Value Investment Strategy	• Long term capital appreciation • Invests primarily in equity and equity related securities of companies in S&P BSE 200 index.	Investors understand that their principal will be at Moderate Risk

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.

Above article is authored by Quantum.

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