The Signal: SIP – Investing In The Gandhian Way

Yesterday, India celebrated the 151st birthday of The Father of the Nation – Mr. Mahatma Gandhi. Ironically, As India celebrates the person who marched for its freedom, it simultaneously spins the Charkha to seek liberation (read as: unlocking economy) from the viral virus.

The teachings of the spectacled icon have found its voice in various shapes & styles across different occupations, from engineering your finances to financing your engineering. In fact, on closer observation, the evergreen investment approach in SIP can see its roots grow from the shoots of Gandhi’s Principles.

All of Mr. Gandhi’s renowned movements credited their success to 1 concrete belief – His stance on non-violence. Mr. Gandhi preached being silent when others talked, for silence often wore the loudest voice. It even found mention in the world’s biggest film industry through “Munna Bhai MBBS” wherein Mr. Dutt stood tall, being inactive to surround sounds.

SIPs in a similar fashion calls for investors to stay invested and let market murmurs fall on deaf ears. SIP is a long-term strategy and so should be played out in the same manner. Also, being non-violent will let violence take care of itself, as is witnessed in SIP through the mathematical magic of “Dollar-Cost Averaging”.  A strategy to help you realize market’s upside potential even in times of downfall!

(Dollar-Cost Averaging is practice of accumulating units at regular intervals with disciplined approach, irrespective of markets health and wealth)

The graph below highlights the potential of SIPs in the long-run and shows why “Time in the Market” beats “Timing The Markets”

Make sure you spell your investments as “SIP”, and not “SLIP”, for it can between your wealth tripling from X to 3X in a span of 10 years! (as seen between 20-30-year investment time period) 

The 2 Key movements helmed by Mr. Gandhi to give the citizen’s its country back were the “Non-Cooperation Movement”
and the “Quit India Movement”. Both these movements garnered favoritism across ponds with United Nations recognizing October 2nd as ‘World Non-Violence’ Day and Mr. Martin Luther King Jr. adopting his teachings to fight the apartheid battle.

The underlying pattern for both movements revolved around staying ‘True-to-Label’ by staying vested. 

It was Mr. Gandhi’s Small Regular And Disciplined Steps That Made The Biggest Difference

Mr. Gandhi’s efforts “compounded” over time to yield independence. Like how he stayed vested, SIP calls for investors to stay invested. Reflecting patience and resilience in your SIPs can help you realize long-term gains irrespective of how tough the short-term situation dresses itself.

Learning from Mr. Gandhi in ’47, Finance derived the ‘Rule of 72’, where staying put equals staying winning. 

Today, India owes a great deal of gratitude to Mr. Gandhi for his unparalleled beliefs and actions. In display on many occasions like the “Dandi March”, it was Mr. Gandhi’s continuity that helped India become a free country. 

SIPs can be recognized as a direct derivative of this school of thought, turning Mr. Gandhi’s Learnings into Earnings. Stressing on continuity, it calls for investors to ride the pain to welcome the gain. Don’t take a pause for any cause, for if you stay invested can you be’ financially independent’ 

As can be seen, Investors can draw so much from Mr. Gandhi’s practices. What better way to honor his efforts than to endorse them today, for they are universally applicable.

And remember, there’s a reason Mr. Gandhi’s is the face of Indian currency! 

If you have any such interesting insights between Mr. Gandhi and Investing principles, do write to us at Fisdom! We are eagerly awaiting to hear from you. 

Happy Weekend.