The Mutual Fund Challenge You Can’t Lose
The market rewards patience, not perfection. Even the worst-timed investment can win if you just stay put.
5/17/20251 min read
Scene 1: The Café CCD
Mumbai, 2020. A crowded café near Dalal Street.
Rohan (sipping chai): "I have a challenge for you. Even if you try your hardest, you can’t lose money in equity mutual funds over 5 years."
Arjun (grinning): "That’s impossible! I’ll prove you wrong. I’ll pick the worst time to invest!"
Rohan slid a ₹500 note across the table. "Bet?"
Scene 2: Arjun’s "Genius" Plan to Lose Money
March 2020
COVID panic. Markets crashing. Headlines screamed "Worst Crash Since 2008!"
Arjun invested ₹10 lakh in a mid-cap fund (Sensex at 26,000).
"Perfect! I’m buying at peak fear!"
2022
Russia-Ukraine war. Markets tanked again.
Arjun high-fived himself: "Yes! My plan is working!"
Ignored all SIPs, refused to rebalance.
2023-24
Friends urged him to invest more.
Arjun folded his arms: "No! I’m committed to losing!"
Scene 3: The Shocking Revelation (2025)
Arjun finally checked his portfolio:
Initial Investment - ₹10,00,000 (2020)
Current Value - ₹18,20,000
Arjun (staring at screen): "What?! How?!"
Rohan (smirking): "Turns out, even trying to lose in mutual funds is hard."
The Irony: Why Arjun "Failed" to Lose
1️⃣ Rupee-Cost Averaging: His lump sum bought more units when prices were low.
2️⃣ Market Recovery: Mid-cap funds delivered ~15% CAGR despite crashes.
3️⃣ Time Beat Timing: 5-year windows historically favor equity investors.
Moral of the Story
"The market rewards patience, not perfection. Even the worst-timed investment can win if you just stay put."
Final Frame:
Arjun sheepishly hands Rohan ₹500. "Fine. SIPs do work."