So ask yourself the question: How long am I investing for? For most people the answer is between 15-40 years.
Historically, there has been no asset class that has done better than equity over that period. Money being invested for kids usually has a horizon of 15-20 years. In my friend’s case the answer was even easier. In 1992, 2001 and then in 2008 there were far serious crises and the equity investments recovered because the underlying companies led by capable managements weathered the crisis and made profits. Is it difficult to keep the faith when you see everyone around you panicking? Yes, but that’s the essence of equity investing. But, as we all know, the equity markets tend to recover from these bad times. That money is made by people who held the course when times were bad. History tells us that equity investing is a long term venture. I had this mental image of her kids looking at me accusingly 20 years from now.Īnd then I said “Yes”. Here’s a really good friend of mine asking for advice on something that could affect the future well being of her children. Should I keep the SIPs going? or should I put it somewhere else?” I got my monthly statement and all the funds are losing money. “See, I’ve got this money that I invest in SIPs with Scripbox for my kids. “Hi Sanjiv this is Anu (name changed), do you have a minute?”
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