Dear Investors,

There was bloodbath in the stock markets for almost a year. 2008 happened to be one among the worst periods. Having invested in various mutual fund schemes, the unrealised loss in various schemes is frightening to look at. Is it not ? If that is the case, will these funds ever recover ? Will my principal amount atleast break even ? Did I do a mistake by parking money in risky mutual fund schemes ? These are the doubts persisting with most of the investors in the market.

We are not going to sing the same old songs like “Think long term”, “Invest only the surplus”, “Align Investments with long term goals” & “Invest & do not save” etc.,

We looked at a select set of funds promoted from reputed fund houses. These funds were launched atleast 5 years back, some even go back to 1993. The findings were simple if not astonishing.  1 year and less than 1 year returns were –ve to the extent of 50%. We looked at the returns since inception. In spite of several ups and downs in the market, these funds had averaged a return of 20% compounded annualised yearly. This kind of appreciation is better vis-a-vis traditional saving instruments like FD, PPF, NSC, Insurance and company deposits.  To come up with a little more detail, let us look at the following scenario...

For instance, if you had invested Rs.1,00,000/- in Reliance Growth Fund at inception, its value as on date (at this bottom of the market) is Rs. 19,19,853.00

After going through this data, we are, but forced to play the same old tunes “Think long term”, “Invest only the surplus”, “Align Investments with long term goals” & “Invest & do not save”. Because fundamentals of investing hold good at all times good or bad.

Align long term goals with investing !!! Attract Wealth !!!