Piqued by curiosity after seeing a Tejas Consultancy flyer 25 years ago, Aarti, a homemaker approached Ritesh Sheth, Advisor, Tejas Consultancy.
Ritesh made her realise the significance of investments in mutual funds. She started investing a small amount in mutual funds through SIP —money that she had managed to save from her household expenses. And she also made a big lumpsum investment in an equity fund. However, Aarti’s husband, Vishnu, a well to do businessman then, was against the idea of investing in mutual funds. He believed that investing in his own business instead could fetch him better returns.
Knowing her investing decision was against her husband’s wish, Aarti asked Ritesh not to disclose it to Vishnu. She continued investing with Ritesh for almost 10 years.
In 2002, things changed dramatically for Vishnu. His factory caught fire and people to whom he had lent money, refused to help. His life came to a standstill. He was in debt, and was clueless about how to keep his head above water. That was when Aarti told Vishnu about her investments and suggested he meet Ritesh at least once.
Vishnu met with Ritesh and asked about the money his wife had invested. To the couple’s surprise, the investments in mutual funds had grown significantly, so much so that all his dues could be settled easily.
Vishnu sought Ritesh’s advice on settling his dues and bringing him back to the track in terms of finances. “I explained to him how diversification can reduce risk and fetch him better returns. I gave his own example and made him understand that how investing across asset classes can help reduce risk,” Ritesh said.
Ritesh helped Vishnu to get out of the financial mess he was in. Right from filing bank papers to redeeming investments, Ritesh helped him in all possible ways to get his business back on track. He also recommended Vishnu to start investing in equity funds through SIP and start a liquid fund to meet day-to-day business expenses.
Following Ritesh’s advice, Vishnu makes it a point to invest at least 30% of his total monthly profit in mutual funds. Today, even his household and office expenses are paid for by the dividends he earns from mutual funds.
Vishnu is a changed man now. So is his perception of MF investments.
And the client-advisor relationship between Ritesh and Vishnu grows stronger by the day.