{"id":3968,"date":"2019-10-11T23:00:58","date_gmt":"2019-10-11T17:30:58","guid":{"rendered":"https:\/\/bltpindia.com\/wordpress\/?p=3968"},"modified":"2023-10-10T00:47:58","modified_gmt":"2023-10-09T19:17:58","slug":"big-investment-lesson-from-big-b-on-his-77th-birthday","status":"publish","type":"post","link":"https:\/\/bltpindia.com\/wordpress\/index.php\/2019\/10\/11\/big-investment-lesson-from-big-b-on-his-77th-birthday\/","title":{"rendered":"Big Investment lesson from Big-B on his 77th Birthday."},"content":{"rendered":"

Today is the Birthday of all-time great Bollywood actor Sri Amitabh Bachchan Ji.<\/p>\n

First of all, let me wish Bachchan ji “Happy Birthday Bachchan ji<\/strong>“<\/p>\n

<\/p>\n

“\u0939\u092e \u091c\u0939\u093e\u0902 \u0916\u0921\u093c\u0947 \u0939\u094b\u0924\u0947 \u0939\u0948\u0902 \u0932\u093e\u0907\u0928 \u0935\u0939\u0940\u0902 \u0938\u0947 \u0936\u0941\u0930\u0942 \u0939\u094b\u0924\u0940 \u0939\u0948”<\/strong><\/span><\/h1>\n
“Hum Jahan khade hotey hain, line wahin se shuru hoti hai”- Kaalia (1981)<\/h6>\n

When Bachchan ji speaks these lines on the screen everyone gets energized. Everybody loves, an attitude like this, but nobody dares to go even close to this.<\/strong><\/span><\/p>\n

Bachchan ji could say this because he was having 2 big truths with him<\/p>\n

1. He knew what he was doing.<\/em><\/p>\n

2. He was confident about his ability to solve the problem on his own.<\/em><\/p>\n

We are suffering from the Herd mentality, that’s why we are showing a totally opposite attitude like – “\u091c\u0939\u093e\u0902 \u092a\u0930 \u0932\u093e\u0907\u0928 \u0939\u094b\u0924\u0940 \u0939\u0948 \u0939\u092e \u0935\u0939\u093e\u0902 \u0916\u0921\u093c\u0947 \u0939\u094b \u091c\u093e\u0924\u0947 \u0939\u0948\u0902\u0964<\/strong><\/span>“(Jaha par line hoti hai hum vaha khade ho jate hai).<\/p>\n

In an investment, we are not thinking about anything, just doing (SIP) investment because everybody is doing it. The hype of this is when we are trying to show off I’m running X number of SIPs and others are doing just Y numbers only. This is nothing but herd mentality with competition which is most dangerous.<\/p>\n

This type of mentality is not limited to investors only, it is seen in advisors also. They are also running after SIPs, and try to beat each other in no SIPs and SIP Book. While doing this competition we forget whether it is required in the investor’s portfolio or not.<\/p>\n

While suggesting SIPs we are moving out of the purpose of SIP. Everybody thinks SIP is a wealth creator but in reality, it is just an accumulator only.<\/span><\/p>\n

As we have pointed out in 2017, “SIP is killing SIP itself<\/strong><\/span>.” We are going to elaborate on this in the coming blogs.<\/p>\n

Do you ever think<\/p>\n

    \n
  1. Why is your SIP not generating returns? <\/strong><\/em>as we are claiming while starting.<\/em><\/li>\n
  2. Why are we not getting proper averaging? <\/strong><\/em><\/li>\n
  3. Why not see the impact of compounding in SIPs even after a 5 year span?<\/strong><\/em><\/li>\n<\/ol>\n
    PS: Do not see the inception returns because your SIP is not started at the inception.<\/em><\/strong><\/span><\/h5>\n

    Remember we can generate big AUM by SIP but we cannot generate big returns by using SIPs in the herd mentality<\/strong><\/span>.<\/strong> In today’s scenario, SIP is the only reason behind the sideway market.<\/p>\n

    \n

    Inflows of SIP support market against fall but in other end, fundamentals don’t allow the market to grow higher.<\/em><\/strong><\/span><\/p>\n<\/blockquote>\n

    The market is in the upper side-way trend for a prolonged period of time, SIP installment booked during this period makes SIP averaging high.<\/p>\n

    If this continues for some more time the image of Mutual Fund is going to be on a stack.<\/p>\n

    What we used to refer to as Long Term was 3 years in 2005-2008, 5 years in 2013-2014, and now we refer to it as 8-10 years. <\/span>But our SIP returns will still not match our expectations even after 8-10 years. So in 2022-2023 we will be referring to Long Term as 15-20 years<\/span>.<\/p>\n

    What we are trying to say is that SIP is not wrong but the way we are doing it is wrong.<\/strong> We will be discussing the correct way of doing it in the coming blogs<\/span><\/span>.<\/span><\/p>\n

    Remember we cannot generate good returns until and unless the market gets corrected.<\/p>\n

    Remember the scene when Bachchan ji wins, everybody joins his line. Similarly, everybody will join you after your win. If you lose nobody will be interested in joining you.<\/p>\n

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