Have you ever heard about the Chinese Bamboo Tree? If not, let me share with you the Bamboo Tree story.
The Bamboo seeds are bow underground and required watering on daily basis. Initial three years nothing happens even then it needs to be watered daily without fail. During the fourth year, it gets sprouted from the ground and gains a height of 10 feet but actual magic happens in the fifth year in which it retains the height up to 100 feet.
In fact, 90% of growth obtained in the last 6 weeks only. It also means that in the entire growth cycle from seed to tree, the major height gets attended in just 2% of the time period. For the remaining time, its root was expanding under the earth to create a strong foundation for such an astonishing height, which we don't see or feel.
Our investments work in a similar fashion. If you are not getting returns on SIP investments for the initial 5 - 7 years, it means the market is under consolidation or correction period and creating a strong base for you with accumulating more & more units every month. The magic will start for sure, maybe after 7 or 10 years but need a lot of patience to handle such future phenomenon growth. Everyone doesn't deserve such kind of high return and exit much before the plant actually gets fertile above the ground level.
Investment is a game of patience. What you need is consistency in investments & patience w.r.t. the time period. The day will come, for sure!
Disclaimer: Investment in securities & mutual funds are subject to Market Risk
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