*Inspiring Stories.:*
A 1L investment in the Nippon India Growth / Midcap Fund would have become a little over 4cr in 30 years. That is 400 times in 30 years. A CAGR of staggering 22% for 30 years.
But I can guarantee you that if I take you back to 1995 & you have to start investing in the fund again, you will not get this return. Let me explain,
Just in the last 1 year between 2024 & 25, Nifty has generated 0% returns, midcap has generated -3% and smallcap has generated -8% & investors are getting jittery that their portfolio shows negative return or 3-4% positive return where as they were expecting atleast 12% in 1 year.
If you look at the Nippon fund’s journey for the last 20 years (not 35) peak to trough (rounding off)
- It fell 63% in the 2008 crises
- It fell 30% in 2010-11
- It fell another 30% in 2012-13
- Another 30% in 2015-16
- 40% in 2020
- 20% in 2022
And yet delivered the 22% CAGR over 30 years. Do you have the mindset to stay invested? Most don’t & hence they cant make wealth by investing!
By Kirtan A Shah. CFA
My Experience and comments.
My Personal Experience..
It wat time when In 2017 when we started journey of advising and wealth creation for friends with just a thought in mind that people is knowing nothing, better we can guide and show right path...
We attended A huge seminar in five star hotel full of more than 500 advisor was hearing to Mr. Sunil Singhania who was then Fund manager of this fund Nippon india Growth fund ( then it was Reliance Growth fund and name of fund changed later)
At that time this fund was down 30% while others are doing quite better...
One of gentleman asked this worries to Sunil Singhania...
And the bold answer from stage on in such a crowd was amazing...
This fund will be best return giving in future....he said.
Moral of the story.
Staying invested is important rather than near term Chaos and ups and downs in the near term performance of the fund.
*Be patient. Be invested.*
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