With equity markets under pressure, some investors are questioning whether it is time to pause their systematic investment plans or cash out of mutual funds altogether. Before making that call, one Reddit user's experience offers a counterpoint.
The investor shared how sticking with the plan turned an initial investment of Rs 51,420 into Rs 2.1 crore over 15 years, delivering an annualised return of 17.1%.
Posting on Reddit on the 15th anniversary of his investment start date, the anonymous investor credited his success not to market timing or frequent switches, but to a steadfast rule: never panic and withdraw during downturns.
The investor recounted navigating market ups and downs over the period, including fund switches, pauses, and periodic reviews, while keeping money consistently invested in mutual funds. "Market goes up and down when down you can accumulate more units for the same price and when it is up you feel happy that your patience is rewarded," he wrote, emphasising the power of staying invested.
15 Years of Investing In mutual funds: Learning
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Key learnings from his experience include:
Ignore star ratings: These reflect short-term performance; analyse funds logically based on fundamentals.
Choose direct plans: They outperform regular plans over time due to lower costs.
Opt for low expense ratios: These enhance net returns in the long run.
Review periodically: Assess funds without overreacting to volatility.
Invest spare money only: Build a corpus without straining finances.
Trust your homework: If due diligence was done before investing, portfolios rebound strongly from dips.
For Indian salaried individuals eyeing systematic investment plans (SIPs) or lump-sum investments, the post underscores the appeal of equity mutual funds amid volatile markets.
While markets remain unpredictable, his story reinforces the mantra: time in the market beats timing the market.
The post generated several reactions. One user asked, “How to review. A fund? What metrics should I watch for?”
Another user said, “Woah! This is just amazing ! This sure inspires me. I am M32 with no previous investment experience In mutual funds. But seeing this I feel even I can try and achieve this.”
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