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  • Success Stories How a forgotten SIP of Rs.10,000 makes an investor a crorepati

    How a forgotten SIP of Rs.10,000 makes an investor a crorepati

    Goa MFD Celso Fernandes shares with us a case study of a client who forgot about his SIP for 9 years only to see his investment cross Rs. 1 crore.
    Nishant Patnaik and Kushan Shah Sep 12, 2024

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    Forgetting about investments can be a blessing! At least this is what Goa MFD Celso Fernandes of Nave Marg Financial Consultants says after the value of money of one of his clients who forgot about his investment crossed the Rs. 1 crore mark in just nine years!

    Talking to Cafemutual, he shares with us the details of this real-life story that shows the power of compounding and the benefits of staying invested for a long time in mutual funds.

    The client had started his first SIP in 2008 of Rs. 10,000 in a mid cap fund when the NAV was Rs. 11. Thanks to his disciplined approach and guidance of the MFD, he continued his SIP for 5 years till 2013. By then, the NAV of the fund had reached Rs. 17. Over this 60 months period, he invested Rs.6 lakh.

    However, the client moved to Kuwait and could not be contacted by the MFD physically or on phone or email.

    Busy in his daily routine, the client completely forgot about this investment. However, when he came back to India in 2022, he approached Celso to enquire about his first SIP.

    To the utter amazement of everyone involved, the investment value of SIP investment had crossed the Rs. 1 crore mark by then. Seeing the exemplary performance, the client continued his investment.

    Today, the value of this investment has reached Rs.1.40 crore. Recently, the client decided to set up an SWP of Rs. 1 lakh every month with this investment.

    Celso, who also forgot about the client after making attempts to contact the client for some time, calls this case study the eighth wonder of the world i.e. the power of compounding through mutual funds. Celso says this case study exemplifies the ‘The power of forgetting’.

    Learning from this miraculous case, Celso recommends MFDs to ask investors to continue investing irrespective of market conditions and encourage them to stay put for long term. He also advises MFDs to promote step up SIPs whenever the market gives their clients an opportunity to accumulate more units.

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    6 Comments
    Sourabh Kejriwal · 2 months ago `
    When you 'forgotten SIP', it was still continued when the guy moved to Kuwait? Or he stopped paying after 2013?
    Karthick Raja · 2 months ago
    Similar happened to our client too.. He unexpected what he invested.. He invested 3Lacs amount in Himdari chemicals (Hscl) before 2-3years at just 48/- rupees now it’s 580/- still he holding.. That’s power of compounding interest.. proof attached. Twitter link...

    https://x.com/k_squarecapital/status/1825940920312938591?s=48
    Reply
    Vijayshree Karwa · 2 months ago `
    Similar scenario happened with one of my clients. In 2005, he invested 6 SIPs installments of Rs 10,000/- each (Total Rs 60,000) in small cap fund. Now his fund value is around Rs 14 lakhs, XIRR is around 17.75% which is very good by any benchmark. Long term investments creates wealth!
    Sooraj Kini · 2 months ago `
    This article could have been tagged rightly. Its not actually 5 years. But it is 14 years that makes the investor a crorepati. that comment had to be in the headline. sensationalising 5 years, when actually it took him 9 years more... isnt an appropriate way to market this post.
    Kushan Shah · 2 months ago
    Hi Sooraj, we have edited the title for better clarity and to avoid any misinterpretation. Thank you for pointing it out.
    Reply
    SUNIL KUMAR SINGH · 2 months ago `
    I don't have an unexpected experience, but I do have an anticipated one ...

    One of my investors who started an SIP of Rs. 4,000 per month in a sectoral (MNC) fund in 2010. After two years, the value of his investment was only Rs. 84,000. He then decided to stop the SIP and withdraw his money. However, after some insistence, he decided not to withdraw the money, although he did stop the SIP. Later, the fund was switched to another schemes, and as of now, the value of that investment (Rs. 88,000 at the time) is around Rs. 900,000+...
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