- 6/9/2025
Ravi Kumar Jha, managing director and CEO, LIC Mutual Fund, shared invaluable insights into successful investing at Outlook Money’s 40After40 Retirement Expo. He underlined discipline, duration, diversification, and diligence as the four key components of a successful investment strategy.
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00:00Thank you so much for joining us so I think in order to discuss how to become a successful
00:08investor we have to discuss a very very viral concept which is popular getting very popular
00:15these days which is the concept of SIP short for systematic investment plan so do you think
00:23SIPs truly are the mantra for successful investing first of all a very good evening to all the audience
00:31and the participants in this hall and I welcome on behalf of LIC mutual fund also all of you and
00:38express my sincere thanks to Outlook money and the entire team for inviting me personally
00:42coming to success story of SIP I need not to highlight because it is it is already highlighted
00:50in the media and if you will see the journey from December 2016 December 2016 the SIP monthly
00:59SIP pipeline was around 4000 crores and just over a period of eight years to December 2024
01:07the SIP amount has risen to more than 26459 crores with a CAGR of 26.75 percent so this
01:16is one data which is extremely important and very vital secondly if you'll ask me about
01:21the SIP AUM so there also I'll tell you in March 2023 it was around 6.83 lakhs and December
01:3024 if you'll say it's almost around 13 crores 13 lakh crores of amount and which comes to 20
01:38percent of the total AUM of the industry also so and it has more than doubled just in a period
01:45of less than two years so as regards SIP people have understood the citizens of India has understood
01:54the millennials the Zenzi they have understood very clearly the benefit of SIP how how they
02:02are going to benefit from the power of compounding etc and there has been a lot of trust and and
02:08and the popularity of the SIP because of this but success does not I'll say success does not in
02:18encompass only SIP there are other other products also in the market like LIC policies like NPS or
02:25bank FDs also so there are other segments of financial savings which which can also be taken as part of
02:34success story because we must have a holistic outlook of the entire success journey and and finally
02:42the real success I will say especially in investment is about investment about patience and due
02:50diligence because unless we have patience unless we have discipline if you are not investing into that
03:00then we will be losing the benefit of the wealth creation which is very very important so any
03:05investment we have to do the real success will come only when we will have patience due discipline
03:12and and a zeal to ensure that we have a wealth kitty over a period of time very rightly said sir and you
03:19have quoted so much data that speaks for the popularity of SIP itself but say recently SIPs have do come under a
03:26lot of fire why do you think that is so see with the popularity of anything it's a traditionally also
03:34at our home also in society also if someone some person will become very popular there will be
03:41naturally a lot of jealousy and envy cause of envy also so likewise similar is the story of SIP why I am
03:49telling you this because if all of you may remember around two years back even Mercedes CEO he also said
03:56that people are preferring SIP rather than taking Mercedes Benz car and currently if you will see
04:03banks have raised away a point a point that their casa ratio is going down because people are investing
04:10into mutual funds and particularly SIP now now friends I'll I'll tell you investors have a right to
04:19invest in any place and particularly Casa if you will tell me Casa is a very low cost uh deposit of
04:28the banks with minimal interest rate of around two percent two point seven percent two point seven five
04:34percent or at the most three percent and therefore people or the citizens or the millennials and Z they
04:41always explore explore good investment avenues and naturally equity market stock market mutual
04:49fund SIP will always be a flavor of taste for for each one of them to invest and get more and more returns
04:57for their money so this is one segment which I wanted to tell you there is another segment which I want to
05:03highlight all of you that we in mutual fund we face everybody all of you appreciate and you may be seeing
05:12that mutual fund every month is picking a new height but there is a second aspect that many people also
05:20terminate their SIP or they stop their SIP and in this market downturn also many people may have might be
05:27doing that either they would have achieved their financial goals or because they might have got emotional
05:35they they may be seeing the returns in a negative territory segment they may be doing it in fact I'll
05:41tell you in April to in March 2023 there were 8.39 crore of SIP numbers and in the last year in in this
05:51financial year April say December to around 5.4 crore new SIP has taken place but the the stoppages or the
06:00termination of the termination of SIP is almost 3.46 crores which is 41 percent of that 8.39 crores
06:06so though SIP numbers have grown to more than 10.32 crores but it is also a fact that good number of
06:15investors are stopping stoppaging or stopping their SIP or terminating their SIP for their own specific
06:24reasons what I want to emphasize that if the market is going down we should not get jittery or emotional
06:34rather that is the time that we should invest more into our SIP lump sum etc so that we can take benefit
06:41of the rupee cost averaging rupee cost averaging is a marvelous concept that at lower prices
06:50it gives higher number of units in that particular folio in that particular account and that gives
06:57lot of push to to the build up of the compounding the power of compounding of SIP and and that power of
07:05compounding of SIP grew in lips and bonds if we don't time the market we we should be disciplined
07:14and keep on investing regularly in SIP as an RDA account etc so that we are able to get full benefit
07:21of the SIP and that is the most important thing this is what the second thing which I wanted to highlight
07:26I wanted to request all the investors through this medium that they should not stop their SIP pause their
07:33SIP rather they should this is the time that they should they should invest more they should go for
07:39step up SIP they should go for topping up their SIP so that the ultimate benefit the wealth creation
07:46can be more pronounced and more strong than what it is you are right sir discontinuation perhaps there
07:52are many reasons attached to it and lack of awareness or understanding could be one of those and along those
07:59lines there are over 2000 mutual funds currently in the market and those are too many options for a
08:05retail investor so how do you think one can make the right choice given there are so many options
08:10layered up ahead of them see coming to the right choice it's it's not an easy answer it's a difficult
08:17answer because there are more than 1500 or as madam very rightly said around 2000 SIP schemes but if you
08:25take an advisor with you the task becomes very easy this is what I'll suggest first and foremost to all
08:31the investors particularly especially the newer ones they want to start their investment journey if they
08:41can take the support of the mutual fund distributor or an advisor that will be wonderful because that
08:48advisor will have a wealth of experience of 10 15 20 years and he can guide beautifully in taking
08:55up the SIP where to invest what to invest all these things will be taken care of that particular
09:00person so this is one thing which is extremely important and this I would like to highlight
09:06second thing is that once I have selected an advisor and I am going with him I must determine my needs
09:14what is my needs what is my needs what is my financial goals I am aiming whether I want to purchase a house
09:21whether I want to as rightly the theme of this this event is 40 after 40 so whether I want to make
09:30planning for my retirement so there are different financial goals that can that an individual can select
09:37for himself so it's extremely important that the determination of the needs determination of the
09:43financial goals are extremely important and the next point is time horizon what is the time horizon
09:50for which I want to invest about short term duration then debt funds will be ideal or otherwise if a
09:58person wants to invest that financial goal financial planning is for a longer period of time three years
10:04five years ten years then naturally equity can be the flavor of the of the of the selection that that
10:11that that person can opt for and then finally if he selects that equity is one of his choice product
10:18he wants to invest in that is the uh that is the uh the report which comes from amphi also we see that
10:25almost 81 percent more than 81 percent of the people's choice is equity only so if equity is the choice then
10:31they have to decide whether they want to go for large cap mid cap or small cap large cap will give moderate
10:39returns with lot of stability mid and small cap can give high growth but there can be volatility so a
10:46longer term there in the mid cap or small cap segment will naturally give lot of uh success to that person in
10:53creation of the wealth kitty which he has planned for himself so so my request will be these three four
11:00things which i said that an advisor uh either a parent father mother who knows about the financial
11:08investing if they are not aware then the advisor the mutual fund distributor is should be the right
11:13person to guide him then he should have his financial goals his needs the duration cons asset linear
11:20diversification of assets these are i think the success mantras for investing successfully in mutual funds
11:29absolutely sir but there's one thing that we must also discuss here you have mentioned key if we
11:34are confused perhaps the best strategy would be to go to a financial advisor and unfortunately or
11:41fortunately i don't know uh we have a lot of advisors influencers as we call them on social media
11:47gen z perhaps uh get way more influenced by them perhaps not a seasoned investor but new investors may get
11:54so what is your advice for them how to steer away from these kind of advisories one has to carefully
12:01select the advisor what kind of advisor either your parent family members or from your office where you
12:07are working from your circle of colleagues that you are having you should find out if somebody is there
12:13somebody is having already having an advisor and who has been a trusted advisor for 5 10 20 years lic agent
12:22or a mutual fund distributor who is also doing the job of mutual fund so and and people will give
12:28in india to suggestion dene ki kami nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi
12:35nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nahi nah
13:05advisor. Thank you for that sir. Now we'll move on to something which is also very important
13:11and an old saying will summarize that we should never put all our fruits in one basket. So there
13:17are so many options and there are too many ways to invest. How should one approach asset allocation
13:22when they're thinking SIP? So coming to I'll take the example of sports or cricket only.
13:28Cricket if you will see a team a country or a team will always have good batsman, good baller,
13:34a good wicket keeper, all-rounders. So a mix of everything will be there so that a balanced
13:41team is there. A team which is very much balanced and who can win matches for the country. Likewise
13:48similarly investment also in financial world also it's very very important to have a diversified
13:54asset allocation. It should be in equity, debt, gold, silver etc. so that a person can get best
14:02of the returns at all times because it is not possible that all the segments will fire
14:08up at one go. One year equity will be very good, next year debt can be very good, third
14:14year gold can be very good. So likewise there will be turn by turn, some will be doing well,
14:19some will not be doing well. But it's very simple to say that one must do asset allocation,
14:27diversified asset allocation but it's a very complex job because the market realities are complex
14:34and proper professional guidance is very rare to come. So therefore my suggestion will be that
14:41in like in a LIC mutual fund we have a multi asset allocation fund, there are some other AMCs who are
14:47having multi asset allocation fund, there are professional fund managers who are doing this
14:52on behalf of the investors. So one need not to worry about asset allocation or one need not
15:00worry about how to go about in selecting different and what component should be there. One should simply
15:07try to invest in those funds, multi asset allocation fund or hybrid funds, hybrid funds are also there,
15:15wherein equity and debt component are there. So there will be always a mix of these products which are
15:20available readily in the market and there are professional fund managers in every AMC who are
15:25doing this job exceed excellently with good returns, good healthy balance returns and so people if they
15:32will be investing that they will be making lot of money and lot of good wealth creation for themselves
15:37and for their families. Absolutely sir. So talking about good and bad investment, how do you think,
15:45is there a magic figure that defines that it will be best? There is no magic figure for returns I'll say
15:54but like we have undertaken study in our own AMC we find that on an average if one is remaining
16:03invested into equity funds he'll be getting a CAGR of compounded annual growth rate of 12 to 14 percent,
16:1015 percent that is the rate that he or she will be getting. So my suggestion will be there are four
16:19Ds. First is discipline, anushasana in investment. Second is duration. Third is diversification,
16:30different assets so that you are always above the curve and finally patience, diligence should be kept.
16:41If we are keeping these four things in our mind I think the magic returns, the magic of power of
16:50compounding will definitely accrue in their folios whether it is SIP, lump sum, whatever.
17:00So how does that change?
17:02If you're not spending this much time to come to our lives, at least 20 percent for those who have been
17:03remembered. If you have determined, the magic of a female who may be given them,
17:05you have to be able to change it and get in touch if you can see both sides of the group.
17:09If you are not spending any more time to achieve the impact of each other, then the magic of
17:10naturalism has not been won. You have to be able to change the practice of the magic of
17:12salvation. Now if we're making the magic of passion, you have to be able to solve this.
17:15You have to do the magic of the magic for the magic that you are using for the magic of that you have.
17:17Now remember for your magic?
17:19Well I'm saying there's a magic for the magic of the magic of an input and the magic of the magic that you can solve this.
17:21Hm I am here.
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