My journey started way back in December 2003, I was just out of school and with some basic knowledge in HTML. And boom I got my first project from a Nashik-based school Boys’ Town School at that time I got my first cheque of Rs.15,000/- . After buying hosting and domain name service from a Delhi based provider. (At that point of time i didn’t own netspaceindia 😉 ) I absolutely had no idea what to do with the Rs.10,000/- and I was having absolutely no idea what to do with my Rs.10,000/-. The easy way was to give that money to my dad but then after doing some study and consulting my dad, I invested the money in UTI Equity Fund at that point the price of 1 unit was Rs.9 so I brought 1,111 units of UTI Equity Fund and totally forgot about it for years.
Today 13yrs later, the price of one unit is Rs.103. Now my 1,111 units are worth Rs. 1,14,433 /- that is 10 times of what I invested. Now this is a classic example of keeping patience with your investment. Now let me explain what a mutual fund is:
A mutual fund is an entity that pools the money of many investors — (unit-holders, like me) — to invest in different shares, debt securities, money market securities or a combination of these. Those securities are professionally managed on behalf of the unit-holders, and each investor holds a pro-rata share of the portfolio.
At that early age I was not aware of share market and absolute no knowledge of profit and loss, so decided to go with professional and go with a mutual fund. When you buy a mutual fund through one-time investment or through SIP (systematic investment plan) you have to understand that these will be your long term investment, When I say long term investment I really mean it (more than 10 + year).
Now imagine what must have happened if I had invested this money for 13 years, in any other investment method, here is the comparing sheet :
| Years | UTI Mutual Fund (1,111 unit) | FD @ 8 % | Gold (20g) |
| 0 | 10000 | 10000 | 10000 |
| 1 | 12221 | 10800 | 11700 |
| 2 | 22220 | 11664 | 14000 |
| 3 | 24442 | 12597 | 16800 |
| 4 | 36663 | 13605 | 21600 |
| 5 | 36663 | 14693 | 25000 |
| 6 | 53328 | 15869 | 29000 |
| 7 | 37774 | 17138 | 37000 |
| 8 | 31108 | 18509 | 53000 |
| 9 | 64438 | 19990 | 63400 |
| 10 | 65549 | 21589 | 63400 |
| 11 | 64438 | 23316 | 57400 |
| 12 | 91102 | 25182 | 53400 |
| 13 | 114433 | 27196 | 57400 |
As an investor, you would like to get maximum returns on your investments, but you may not have the time to continuously study the stock market to keep track of them. You need a lot of time and knowledge to decide what to buy or when to sell. A lot of people take a chance and speculate, some get lucky, most don t. This is where mutual funds come in. So my TIP for all new investor is to keep investing and keep growing, Also did you I mentioned, This Rs. 1,00,000/- is tax-free ? 🙂
