You all invest in mutual funds for wealth creation over a period of time or to achieve your personal goals. But, how many of you really invest through MF to create a legacy for your third-generation, not even 1%. Forget about the third generation, most even don't plan for their second-generation via MF mode. You might be running a business and having succession planning to handover it to your next generation and also might be asset holding like gold, real estate, or FD to pass on but not MF or Equity.
MF (equity & Hybrid), despite having the highest potential to generate a return in long term, the investor just holds on an average 3 - 5 years max and therefore fails to get real fruits from compounding benefits. You all know equity is a volatile asset and recommended for the long term so as MF SIP. The returns are not guaranteed in gold or real estate either, even then people hold it for years & years. However, in the case of MF, people seek guarantee & returns in short term, which altogether the wrong approach to look at this wonderful asset class. MF is the only vehicle that provides you facility from savings to investing. In the short term, safety is more important and in long term looks for the returns and therefore change asset class category within the MF accordingly.
How many of you plan to receive 10 crores or 100 crores through SIP mode. I bet, none; the reason being SIP holding period on an average is just 3 years in 90% of the cases. And when you talk about 40 to 60 years SIP, nobody interested to create that legacy after so many years. Everyone wants quick money overnight basis and even today equity investment is considered as an immediate profit mode. It doesn't matter whether you invest 10,000 or 20,000 p.m., more important is the longer time period which is an essential part of compounding growth and set you to become financially independent.
A million-dollar question is who is interested to sacrifice one generation for the next generation? Is it a matter of investing 10k or 20k for 40 - 60 years, not really? It's a matter of long patience, conviction, and behavioral finance. Unfortunately, everyone wants to be financially free but nobody wants to act in that direction to achieve that!
Disclaimer: Mutual Funds investment are subject to Market Risk
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