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Ganesha is here! The 10-day festival is a time for joy, celebration, and get-togethers. Festival celebra- tions take place in people’s homes as well as on grand scales in societies and public pandals. ‘Ganpa- ti Bappa Morya!’ slogans and the sweet offerings of ‘Modaks’ add cheer to the festive and auspicious atmosphere. Lord Ganesha holds a special place in the Hindu tradition. He is known as ‘Vignaharta’ or the remover obstacles, Ganpati Bappa is often prayed to before starting anything new.

There are many stories and symbols around lord Ganesha’s form. His elephant head symbolizes intelligence while his big ears stand for listening with intent, his body represents strength and power while his vehicle, the mouse, represents humility. If we look at the Ganpati idol, we often see that the left tusk is broken. According to mythology, Ved Vyasa, the maharishi who wrote Mahabharat, wanted someone to write the story as it flowed from his mind. No one on earth was able to write at such a high speed. Hence, he asked lord Ganesha for help. Lord Ganesha, who was secretly delighted, agreed to help. Ganesha started writing using an ordinary quill. How- ever, the quill broke off in the middle of the dictation. Not wanting to stop, Ganesha, simply broke off his tusk and con- tinued writing. His dedication and commitment brought to life an important epic in Hindu tradition.

This story teaches us the power of consistency and dedica- tion, undeterred by obstacles. Very often in investing and in life, we start something with great enthusiasm and stop it when we hit the first obstacle. Every 1st of January, we take gym membership and soon life takes over and we get so busy that fitness takes a back seat. Similarly with our investments, we start our investment journey with financial goals but as soon as the markets turn volatile or fall, we stop our SIPs and may even redeem our investments pre-maturely. Stopping SIPs prematurely comes at a cost. But imagine if we contin- ued going to the gym despite the other commitments or if we continued with our investments despite the market fluctua- tions, what would be the outcome? Let’s look at some data to gain clarity.

Let’s see what happens if someone prematurely stops their investment at every market fall. Suppose Mr. Edgy started an SIP of Rs 2,000 per month on 1st September 2018. Assuming the investment was in the Nifty 50 TR Index. There was a major fall in equity markets in Mar 2020. Let’s see how Mr. Edgy’s investments look, had he redeemed at the fall and invested the corpus in fixed deposits versus had he stayed invested.

Had Mr. Edgy continued with his SIP even after the volatility of 2020, he would now have a corpus of approximately Rs 1.76 lakhs. It is a small example indicating that consistently can play a huge role in your wealth creation story.

So, if we continued going to the gym despite the other commitments or if we continued with our in- vestments despite the market fluctuations, what would be the outcome? A fitter and better us. Keep- ing this in mind, let’s do a Shree Ganesh of our investments!

Written by - Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund

Data as on: 31st August 2023.
Source: NSE indices, SBI website and Internal Research.
*SBI fixed deposit rates for more than 3 years effective from 28/03/20 has been considered (5.7%) to calculate the final amount.

Disclaimers:

The views and investment tips expressed by experts are their own and are meant for informational purposes only and should not be construed as investment advice. Investors should check with their financial advisors before taking any investment decisions.

The material contained herein has been obtained from publicly available information, internally developed data and other sources believed to be reliable, but Baroda BNP Paribas Asset Management India Private Limited (formerly BNP Paribas Asset Management India Private Limited) (AMC) makes no representation that it is accurate or complete. The AMC has no obligation to tell the recipient when opinions or information given herein change. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. This information is meant for general reading purposes only and is not meant to serve as a professional guide for the readers. Except for the historical information contained herein, statements in this publication, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. The AMC undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Words like believe/belief are independent perception of the Fund Manager and do not construe as opinion or advise. This information is not intended to be an offer to sell or a solicitation for the purchase or sale of any financial product or instrument. The information should not be construed as investment advice and investors are requested to consult their investment advisor and arrive at an informed investment decision before making any investments. The Trustee, AMC, Mutual Fund, their directors, officers or their employees shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages arising out of the information contained in this doc- ument.

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Toll free Number: 1800 2670189 Email id: [email protected] Website: www.barodabnppparibasmf.in

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Scheme Riskometer**


**basis portfolio of the Scheme as on July 31, 2024

Riskometer


*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

Benchmark Riskometer**


**Basis constituents of the scheme as on July 31, 2024

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*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Benchmark

*The PRC matrix denotes the maximum risk that the respective Scheme can take i.e. maximum interest rate risk (measured by MD of the Scheme) and maximum credit risk (measured by CRV of the Scheme)

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