The story of two Investors


There were two disciples (Shishya) To  a Guru ji (Master).  They were curious and in a hurry to get their problems resolved. So they approached him to guide them to get their grievances addressed.

The Guru ji told both of them to go to the nearby Peepal  tree and circle the tree 108 times and come back and report to him. As directed both of them went there and saw lot of people circling the tree which was an auspicious one. They all did pooja to the tree with coconut camphor fruits etc  and after that, were  circling the tree. Some were circling for few times, some for a few hours and some longer in the day

The first one saw everyone circling clockwise and thought that the Guru ji had more or less given the same instruction to everyone. He thought that if everyone is doing the same, then he cannot get anything different and decided to circle the tree anti clockwise. After completing about 60 times he found something under his feet and to his surprise it was a 50 rupee note. He looked around and saw no one was noticing him and took the money and put in his pocket. He stopped circling further and went back to Guru ji

The second person followed the instructions of his Guru ji and circled the tree Clockwise 108 times. When he had done around 50 circles he hit a stone and injured his leg. But with pain, he was determined to complete the instructions and he did so before meeting the Guru ji.

Now both of them shared their experienced and the first one was very happy and more so he did only half but got  50 rupee while the other one got only hurt in the process.

To the first one the Guru Ji said that he would have got more money had he completed 108 circles and by not doing he lost that opportunity. Also the 50 he got was his one money which was the balance of RS 100 he used for buying pooja items.  He had missed  an opportunity and lost this moeny through his behaviour and attitude

As for the second one, he went through hardship, but could not find any instant gratification but he has been immensely benefited as he would discover this soon.(he has accumulated benefits and he is not aware of this). He was saved in the process of circling as otherwise he would have faced severe hardship.

Consider the two disciples as investors and each of them invest in SIP for 108 months say 9 years.

Many people do not have the patience and think they are smart and book profits. Like the first Shishya they lose a great opportunity to create wealth
The second person has gone through testing to.especially during the period of investing with market crash and reaps the reward for Maintaining discipline and patience the characteristics required for an investor.

Given below is the performance of  some funds on the last 9 years from April 1 2007 to April 2016.

This period has been considered to take into effect the global crisis and market crash of 2008.  Most of the large cap / diversified funds have given 12 % CAGR on an average and given below are some of the out performers.

You will also note that the tax saving schme of Birla, the effective return is 20.73% considering that you invest only 700 and not 1000 as you get 30% tax savings.

Inline images 1

Remember this.

A Trader counts profits in Rs. Say 2000 or 5000

An Investor counts profits in percentage (%)  25 % or 75% 

A wealth creator counts profits in multiples like 2x 5x or 10x. 

Decide who you are and invest to your style. 

The Guru ji is your advisor and you Decide which type of investor you want to be

Thanks & regards


ckar.vsv@gmail.comimage (2)


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