Sunil Ghai used to be a traditional saver until he met Sandeep Garg, an Independent Financial Advisor (IFA) in early 2014. While Sunil had a regular investible surplus, it found its way into the traditional investment products and insurance policies. As Sandeep helped Sunil frame his investment strategy for long term wealth creation, his first step towards his financial planning was to chalk out an investment plan suiting his financial goals and risk appetite. Since Sunil was familiar with mutual funds through the ‘Mutual Fund Sahi Hai’ campaign by the Association of Mutual Funds in India (AMFI), convincing him to invest was not a challenge.
Pleasant investment experience is indeed vital, especially for the new retail investors. Initially, in 2014, Sunil had to shift a lump sum from traditional investments to mutual funds. Later, a Systematic Investment Plan (SIP) of Rs 20,000 per month was registered to help him continue with his regular investing habits. The positive beginning encouraged him to increase his investment and today his SIP amount is Rs 1,00,000 per month.
Extreme market volatility did not affect his persistence and conviction in financial plans. His regular interactions with Sandeep for periodic portfolio review have helped him remain focused on achieving the goals instead of fretting about the intermediate fluctuations in the financial markets.
His trust towards mutual fund investing, further aided by his IFA’s guidance, has been instrumental in his family, relatives, and friends. However, there was no single investment strategy that could be adopted by all alike. Sandeep formulated suitable strategies for different people best suiting their financial goals, investment horizon, available investible funds, and risk appetite. While a few opted for lump sum investments, SIP mode found its place in almost all the investment plans. This was considered prudent, as SIPs required investment over time and not in one go and further mitigated the investment risk to some extent by investing across market movements. With a healthy accumulation and growth over the period, Sunil could also persuade his domestic help towards regular investing.
While Sunil could have a pleasant experience aided by a sound investment strategy, one can indeed learn from his experiences and learnings and move towards making the right investment decision.
Enriched with an investment experience of around six and a half years, Sunil shares his experience and learnings across his investment journey:
Sandeep Gar, Independent , Financial Advisor