Gandhi Jayanti 2024: Mohandas Karamchand Gandhi, the father of India, was born on October 2, 1869. Not just being a humble human being, selfless and kind, Mahatma Gandhi was patriotic and intellectual. From becoming a lawyer to an anti-colonial nationalist, Mahatma Gandhi is at the heart of India's independence from the Britishers after 89-years of rule. As India celebrates and honors the birth of Mahatma Gandhi, a gift to the country's democracy and growth. Indians, especially the young generation, can learn a lot from Bappu's knowledge to achieve financial freedom. One of the most disciplined and affordable investments currently is in Mutual Fund SIPs.
Here are the top 7 lessons to learn from Mahatma Gandhi for fruitful and long-term gains in Systematic Investment Plan (SIP).
As per HDFC Bank's blog, Mahatma Gandhi's principles of simplicity and consistent small actions are applied to Systematic Investment Plans (SIPs) for financial growth. That being said, key lessons from Mahatma Gandhi's approach to SIP investors include:
1. Start small: Begin with modest amounts.
2. Set clear objectives: Define specific financial objectives.
3. Diversify: Spread investments across different funds.
4. Be patient and consistent: Maintain investments despite market changes.
5. Practice self-discipline: Stick to your investment plan.
6. Trust experts: Rely on fund managers' expertise.
According to the bank's blog, Mahatma Gandhi was big on self-control. He lived simply and avoided unnecessary things. With your money, this means being disciplined. Set up your SIP and stick to it. Don't stop just because the market looks scary for one month. Keep going, just like Mahatma Gandhi kept walking on his salt march.
Further, the blog highlighted that Mahatma Gandhi trusted others to help in the freedom movement. With SIPs, you're trusting expert fund managers to handle your money. They know the ins and outs of investing and can make smart choices for you.
What Are Systematic Investment Plans (SIP)?
SIPs are an investment plan offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund scheme periodically, at fixed intervals. SIP instalments are affordable as the minimum investment could be as low as Rs 100, and there is no maximum limit.
Investors can invest in SIPs through monthly, quarterly, half-yearly or yearly instalments. The investment method in SIPs is also convenient, as the fixed instalment amount gets debited from the bank account during the scheduled period.
The Power Of Compounding In SIPs:
According to AMFI, there is a great advantage with long-term investments, namely, compounding which is considered one of the greatest mathematical discoveries.
In simple words, compounding is when the interest (or income) you earn is reinvested in the original corpus and the accumulated corpus continues to earn (& grow). Every time this happens, your investment keeps growing, paving the way for a systematic accumulation of money, multiplying over time.
Example: To illustrate, a small amount of ₹1000 invested every month at an interest rate of 8% for 25 years would give you ₹ 9.57 Lakh! That means your investment of just ₹ 3 Lakh would have grown three times over, as per the AMFI website.
Latest SIPs Performance:
The demand for SIPs continues to grow in India. Data from AMFI showed that Indian Mutual Funds have currently about 9.61 crore (96.1 million) SIP accounts through which investors regularly invest in Indian Mutual Funds schemes.
SIPs inflow is at a record high of Rs 23,547 crore in August 2024. So far in FY25, SIPs inflow stood at Rs 1,09,416 crore (April - August 2024).
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