The similarity between our Lives and Mutual Funds

Amar Pandit , CFA , CFP

November 20, 2020 | 2 Minute Read

Let me give you a hint. It has something to do with a Nano I wrote a few weeks back “The Least Understood Line”. Never mind, let me break the suspense.

The similarity is that both go up and down. However, it does not end there. Unless you are Benjamin Button, most of us grow not only in age but wisdom over a period of time.

Do we have a steady line from childhood? We all have our ups and down but overall, our trajectory is upwards. In short, we grow.

Similarly, mutual funds go up and down but most of them (like most of us) grow over a period of time. Wait, there is some more.

Do we expect a child to become an adult in 5 years or 10 years? No, the legal age (for marriage) is 18 and 21 for women and men, respectively. Why do we expect our investments to become adults in a few years? Let your investments become adults and see the intrinsic power of compounding work for you in overdrive.