Time : Mid 90's
A & B : get Rs 20,000 as a bonus from their organisation ( Definitely a huge amount then!!)
A buys a 21" flat CTV for that amount..
B decides to go for a smaller and simpler TV costing around 12,000 and invests 8,000 in an equity fund . ( It was early stages when private MFs had set shops in India).
Time : 2007 Jul
A and B plan to buy a TV again . They decide to get an LCD for Rs 50,000 for their homes.
A takes it on EMI. B sells some units of his funds ( current value 2,40,000) worth Rs 50,000 and decides to leave the rest of the amount to grow in it further.
Time and patience has definitely helped B accumulate a good amount of wealth. I don't say any one of them is better than the other or made a good decision. But the power to forgo consumption at least partially and investing for the future pays results....most of the times ..if not always.
The mutual fund mentioned here has been an exceptional perfomer and has yielded 34% returns since launch for more than a decade now. Try guessing the name of the fund.
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