Investment Philosophy
Think Like a Farmer to Grow Your Wealth
By Investing in Mutual Fund SIP - Learn how a farmer's disciplined approach to farming can guide your investment journey. Discover the importance of choosing the right tools, following correct methods, planning, and maintaining discipline to achieve your financial goals.
Systematic Approach
Choose Right Tools
Plan & Maintain
Joy of Fulfilment
Think Like a Farmer
Just like a farmer follows a systematic approach to grow crops and reap a bountiful harvest, you can apply the same principles to grow your wealth through mutual fund SIP. A farmer's success depends on choosing the right tools, following the correct method, planning, maintaining discipline, and adding boosters regularly.
Similarly, successful wealth building through mutual funds requires the same disciplined approach. Let's explore how you can think like a farmer to achieve your financial goals.
Choose the Right Tools
A Farmer's Approach
A farmer selects the tools by considering different factors such as performance, reliability, maintenance, and cost. Based on his research, the farmer selects the right tools which best suit his needs.
Your Investment Approach
Similarly, you should choose the investment avenues based on your financial needs and risk profile. To align returns with financial needs, it is crucial to choose the right investment product.
Investment Returns Comparison:
Savings Bank
3-4%*
Fixed Deposit
5-7%*
PPF
7-8%*
SIP in Mutual Funds
12.62%**
*Assumption based on the historic returns range.
**Assuming Investment in Equity Funds and an average return of 12.62% p.a. as per AMFI Best Practice Guidelines Circular No.135/BP/109-A/2024-25, Dated September 10, 2024. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Follow the Correct Method
A Farmer's Method
A farmer plants in a methodical and disciplined manner, maintaining equal distance between each crop to ensure growth and maximum yield.
Systematic Investment Plan (SIP)
While investing in mutual funds, it is important to ensure that you follow the correct method of investing. SIP in mutual funds is a methodical tool that requires a disciplined approach and long-term vision on your part, to get the best results.
SIP helps you invest systematically, just like a farmer plants crops methodically, to ensure consistent growth and maximum returns over time.
Plan and Maintain
A Farmer's Discipline
A farmer plans how he would carry out the plantation, he sticks to it, and follows it until he gets what he desired.
Your Investment Discipline
You should assess your financial needs, quantify them, and invest regularly through SIP in Mutual Funds to fulfil them. It is very important to stay invested until these financial needs are fulfilled.
SIP Performance - The Longer You Stay, The More You Gain
Just like a farmer reaps better harvests with longer cultivation periods, your SIP investments grow significantly when you stay invested for longer durations. Here's how ₹25,000 monthly SIP has performed over different time periods:
SIP Started 20 Years Ago
- • SIP Amount: ₹25,000/month
- • Total Invested: ₹60 Lakh
- • Estimated Return: ₹2.48 Crore*
- Growth: 4.13x
SIP Started 15 Years Ago
- • SIP Amount: ₹25,000/month
- • Total Invested: ₹45 Lakh
- • Estimated Return: ₹1.25 Crore*
- Growth: 2.79x
SIP Started 10 Years Ago
- • SIP Amount: ₹25,000/month
- • Total Invested: ₹30 Lakh
- • Estimated Return: ₹57.89 Lakh*
- Growth: 1.93x
*Assuming Investment in Equity Funds and an average return of 12.62% p.a. as per AMFI Best Practice Guidelines Circular No. 135/BP/109-A/2024-25, Dated September 10, 2024.
The longer you stay invested, the more your wealth grows - just like a farmer's harvest improves with time and patience!
Add Boosters Regularly - TOP-UP SIP
A Farmer's Boosters
A farmer schedules the use of manure and fertilizer for better yield. These boosters, coupled with consistent efforts by the farmer, ensures the desired yields.
TOP-UP SIP - Your Investment Booster
Similarly, you can use a Top-up SIP to ensure that greater wealth is built. Through Top-up SIP, the investment amount is increased periodically to fulfil financial needs.
TOP-UP SIP Performance Examples:
SIP Started 15 Years Ago
- • SIP Amount: ₹25,000/month
- • Top-up: ₹2,500/year
- • Total Invested: ₹76.50 Lakh
- • Estimated Corpus: ₹1.87 Crore*
- Growth: 2.44x
SIP Started 10 Years Ago
- • SIP Amount: ₹25,000/month
- • Top-up: ₹2,500/year
- • Total Invested: ₹43.50 Lakh
- • Estimated Corpus: ₹78.40 Lakh*
- Growth: 1.80x
*Assuming Investment in Equity Funds and an average return of 12.62% p.a. as per AMFI Best Practice Guidelines Circular No. 135/BP/109-A/2024-25, Dated September 10, 2024.
Joy of Need Fulfilment
A Farmer's Joy
While farming is a long-term process, the outcome of a successful harvest brings joy, financial stability, and fulfilment to the farmer.
Your Financial Fulfilment
To build wealth, investing in Mutual Fund SIPs requires patience and persistence. Through a disciplined approach of staying invested, you can fulfil your financial needs and become financially independent.
You should opt for the guidance of a mutual fund distributor who can guide you and help you stay disciplined throughout your financial journey.
Ready to Think Like a Farmer and Grow Your Wealth?
Just like a farmer follows a systematic approach to achieve a bountiful harvest, you can grow your wealth through disciplined SIP investing. To fulfil your financial needs, a Mutual Fund Distributor can suggest you the right Mutual Fund products by understanding your financial needs.
Disclaimer
The figures/projections are for illustrative purpose only. The situations/results may or may not materialise in future. Mutual Fund investments are subject to market risk, read all scheme related documents carefully. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
The information contained herein does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any security or investment product or an invitation, offer or solicitation to engage in any investment activity. It is strongly recommended that you seek professional investment advice before taking any investment decision.
Any investment decision that you take should be based on an assessment of your risks in consultation with your investment adviser. To the extent that any information is regarding the past performance of securities or investment products, please note such information is not a reliable indicator of future performance and should not be relied upon as a basis for an investment decision.
Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing.
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