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The Hare and Tortoise !

We all have heard the ‘ Hare and Tortoise’ story in school. Many of will immediately recall the moral ‘slow and steady wins the race’. We also must have thought this is not a real story but a fable to teach us the importance of doing something right and doing it all the time. Some one actually did test the story out, check the video

 

The moral of the reality, since this is not a story anymore, is that whether it is health or wealth, small but steady growth is better than running and stopping to run again. Many investors think they can time the market well by jumping in and out of the equity market / equity mutual funds but not many are interested in slow and steady purchases.

Last 10 years of SIP returns of a large cap fund like Franklin Bluechip has been a decent 13%, This Tortoise like investing has produced impressive result. Of course we cant foretell the future / Deposits may have given 9-10% without risk (but with taxes !)  etc but the point is that Tortoise won. While future returns are not in our hands one can i guess stick one’s neck out and say that the slow and steady Tortoise is likely to win again..

Happy weekend,

 

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