Mahatma Gandhi’s timeless principles of simplicity, discipline, and self-reliance extend beyond personal life and blends into the realm of financial management. When applied to investing, these teachings guide investors towards thoughtful, long-term decision-making and financial freedom.

'The world has enough for everyone's needs, but not everyone's greed'

Gandhi ji’s message about distinguishing between needs and greed resonates deeply in the world of investing. During bull markets, many investors chase quick profits by taking higher than optimal exposure to a single stock or sector or speculative assets, often resulting in financial stress. A wise approach to avoid this is through Hybrid Funds, which invest across equities, debt, and/or gold, helping investors achieve balanced and long-term growth without falling into the trap of greed-driven decisions.

Additionally, investors may follow the 50/30/20 rule for budgeting—allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This will help investors maintain a healthy balance between spending and saving, effectively keeping greed in check.

'In a gentle way, you can shake the world'

Gandhi ji’s belief in the power of steady, purposeful actions, aligns with the process of wealth creation through Systematic Investment Plans (SIPs). These small, consistent contributions reflect the gradual yet impactful change. Overtime, these investments benefit from rupee cost averaging and compounding, potentially leading to wealth creation.

A monthly SIP of RS 10,000@ in HDFC Flexi Cap Fund since inception has grown to Rs 20.76 crore^

@Assuming Rs 10,000 invested systematically on first business day of every month since January 1, 1995 (Scheme Inception Date) ^ Data as on August 31, 2024. Refer complete performance on page no. 5.

Past performance may or may not be sustained in future and is not a guarantee of any future returns.

'Strength does not come from physical capacity. It comes from an indomitable will'

Gandhi ji’s emphasis on inner strength parallels the need for mental resilience in long-term financial planning. Consistently contributing to an investment could ensure a more secure financial future, and the sooner investors start, the more time their investments have to grow and compound. This also requires mental resilience, particularly during market volatility. Just as Gandhi ji believed in inner strength, investors must remain steadfast in their goals and resist panic during downturns.

A monthly SIP started on April 1, 2010 for ₹10,000@ invested in the Nifty 50 TRI grew to ₹15.20 lakhs by March 31, 2020, delivering a return of 4.63%. This was the time of Covid-19, where many investors would have been tempted to redeem their investments due to perceived poor performance. However, had the SIP continued for another year, by March 31, 2021, the investment would have grown to ₹27.80 lakhs, reflecting a return of 12.89%. This highlights the importance of staying invested, especially during market downturns, to reap long-term benefits.

@ Assuming Rs 10,000 invested systematically on first business day of every month. Rate of return is calculated using Actual SIP Returns (XIRR) of Nifty 50 TRI.

Past performance may or may not be sustained in future and is not a guarantee of any future returns.

'For winning Swaraj one requires iron discipline.'

Discipline is central to long-term investment success. An SIP for investments, encourages regular contributions, regardless of market conditions, and utilizes rupee cost averaging to take advantage of market fluctuations. By maintaining discipline, investors can effectively pursue their financial goals. In short,

Sound Investment + Time + Patience is the recipe for Wealth Creation.

By embracing Mahatma Gandhi’s teachings, investors can become thoughtful, disciplined, and patient. His wisdom encourages them to avoid greed, focus on their priorities, and take consistent, purposeful actions that reflect long-term financial goals. Through small, regular efforts and a balanced approach, investors can achieve financial independence while staying true to their core values.

SIP - Systematic Investment Plan

HDFC Flexi Cap Fund

SIP Performance^ - Regular Plan - Growth Option

SIP since inception* of ₹10,000 invested systematically on the first business day of every month (total investment ₹35.60 lakh) in HDFC Flexi Cap Fund would have grown to ~ ₹2076.96 lakh by August 30, 2024 (refer below table).

Financial Wisdom from Mahatma Gandhi's Sayings

CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. SIP - Systematic Investment Plan.

*Inception Date: January 01, 1995. The Scheme is managed by Ms. Roshi Jain since July 29, 2022. #NIFTY 500 (Total Returns Index). ## NIFTY 50 (Total Returns Index). As NIFTY 50 TRI data is not available since inception of the scheme, additional benchmark performance is calculated using composite CAGR of NIFTY 50 PRI values from January 1, 1995 to June 29, 1999 and TRI values since June 30, 1999.

Past performance may or may not be sustained in the future and is not a guarantee of any future returns. Returns greater than 1 year period are compounded annualised (CAGR).Load is not taken into consideration for computation of above performance(s). Different plans viz. Regular Plan and Direct Plan have different expense structures. The expenses of the Direct Plan under the scheme will be lower to the extent of the distribution expenses/commission charged in the Regular Plan. ^Returns as on August 30, 2024. The above returns are of Regular Plan-Growth Option.

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