The Profit Prism

Fund Manager Changes: Does It Really Matter to Your Mutual Fund Returns? Every now and then, investors receive an update that sounds more alarming than it actually is: The fund manager of your mutual fund scheme has changed.  For many investors, this immediately raises uncomfortable questions. Should I exit the fund? Was the earlier performance only because of this person? Will the new manager take unnecessary risks? With several AMCs, including SBI Mutual Fund , announcing fund manager changes in early 2026, these questions have once again come to the forefront. The truth is, fund manager changes are neither rare nor automatically negative . In fact, they are a normal part of a growing and maturing mutual fund industry. What matters is how investors interpret and respond to them. What Does a Fund Manager Change Actually Mean? At the most basic level, a fund manager change means that the responsibility for managing the portfolio moves from one individual to another . B...

The 7-5-3-1 Rule: A Simple Framework to Decide How, Where, and How Long to Invest Your SIP For most people, investing does not fail because of lack of information. It fails because of confusion, impatience, and inconsistent behaviour . There are too many options, too many opinions, and too much noise. As a result, investors keep asking the same questions: How long should I stay invested? Where should I invest my SIP? What should I do when markets fall? How do I increase my investments sensibly over time? The 7-5-3-1 rule is a simple investing framework that helps answer these questions in a structured and practical way. Though not formally coined by Warren Buffett , this approach reflects his core philosophy of patience, discipline, and long-term thinking . The strength of this rule lies in its simplicity. It does not require market predictions or complex calculations. It focuses instead on behaviour and process - two things that matter far more than most investors...

Investing Isn’t About Timing the Market - It’s About Training the Mind Investor Awareness Column In a country where stock market discussions dominate dinner tables and social media feeds, investing is often mistaken for a game of quick profits. Yet, history repeatedly shows that wealth is not built by chasing market highs or predicting crashes, but by following a disciplined, patient, and long-term approach. Below is an article, outlining a very structured, factual, and practical approach to investing, meant for anyone serious about long-term wealth creation. 1. There Is No “Perfect” Time to Invest Many investors wait endlessly for the “right moment” to enter the market. The truth is simple: such a moment does not exist. Markets move unpredictably, and waiting for certainty often means missing opportunity. Investor fact: Long-term investors who stay invested through market cycles tend to outperform those who attempt to time entry and exit. 2. The Stock Market Is Not Gambling...

Money Matters | Client Questions Answered Every week, readers write in with practical money doubts shaped by real-life situations. Here are some of the most common questions and answers based on current financial behaviour.  Q: I earn well today, but my savings seem to be shrinking. Why is this happening? This is becoming very common. As incomes rise, expenses quietly rise along with them - better lifestyle choices, higher EMIs, and convenience spending. Savings don’t reduce suddenly; they slowly get crowded out. Bottom line: Higher income does not automatically mean higher savings. Saving needs conscious planning. Q: Is it okay to keep most of my money in savings accounts and deposits? Savings accounts and deposits offer safety, but they usually don’t grow fast enough to protect your money’s value over time. When prices rise steadily, money that stays idle slowly loses purchasing power. In simple terms: Safety is important, but growth is equally necessary. Q: Peop...

Rising Incomes, Shrinking Savings A Silent Risk to India’s Financial Future India is earning more than ever before. Yet, paradoxically, it is saving less . This silent contradiction is one of the biggest and least discussed risks to India’s long-term financial stability, especially for high-income earners. The New India Story: More Money at the Top Recent data paints a striking picture: Crorepati income tax filers jumped by 22% in Assessment Year 2026 Strong growth was seen in ₹50 lakh+ income brackets Better compliance played a role, but real incomes are clearly rising On the surface, this signals prosperity, aspiration, and progress. But this is only half the story. Source >>  Crorepati I-T filers surge 22%, even as India’s tax base stagnates The Hidden Trend: Savings Are Falling Despite rising incomes: Household savings fell to ~18.1% of GDP in FY24 Net financial savings are near multi-decade lows Borrowing and liabilities are steadily increasing India’s gross domestic s...

Why Your SIP Looks Disappointing First - And Then Suddenly Explodes The Truth Every Mutual Fund Investor Must Know Before Quitting A Common Investor Question I started SIPs in a top-performing mutual fund. It’s been 2–3 years, but returns look average. Did I choose the wrong fund? You didn’t. You’re just early . Let’s break this using a Myth vs Fact comparision and clear one of the biggest mutual fund misunderstandings. Myth 1: If a Mutual Fund is the best, it should perform well from Day One Fact: Even the best mutual funds struggle in the first 2–3 years of SIP SIPs buy units every month at different market levels Early investments face market ups and downs Compounding hasn’t kicked in yet Returns look slow, flat, or disappointing This phase is normal , not a problem. Myth 2: Poor early returns mean the fund is bad Fact: Early SIP years are for accumulation, not acceleration First 3 years = unit collection phase You are buying more units during m...

Why SIP Feels Easy Until the Market Falls: Common Mutual Fund Questions Answered Are Mutual Funds and SIPs really simple or do markets make them feel confusing? If you are investing through SIPs and Mutual Funds, these questions may sound familiar. This article answers common questions frequently asked by Mutual Fund clients . While identities are kept confidential, the doubts are real, repeated, and practical. This FAQ-style guide helps investors understand how SIP investing truly works , especially during market volatility. What Will You Learn From This Blog? • How SIP works during market ups and downs • Why Mutual Fund returns look slow initially • Common SIP mistakes investors make • The role of discipline in long-term wealth creation • How a Mutual Fund advisor adds real value “I have started an SIP. Is that enough for long-term wealth creation?” • This is one of the most common Mutual Fund questions • Starting an SIP is simple; consistency is critical • SIP work...

Can ₹1,000 a Day Really Make You Wealthy? Here Is the Mutual Fund Truth Every Investor Must Know What if the money you spend casually today could quietly build serious wealth over the next 10 to 15 years? This is not a sales pitch. This is how mutual funds actually work when used correctly. What Will You Learn From This Blog Why small daily investments can create big long-term wealth How mutual funds truly work behind the scenes What returns are realistic and what is pure marketing noise Why discipline matters more than fund selection How a mutual fund advisor adds real value over time Why Mutual Funds Attract Serious Investors Mutual funds pool money from many investors That money is invested in equities, debt, or a mix of both Professional fund managers handle research and allocation You participate in market growth without tracking stocks daily The Power of SIP Explained Simply ₹1,000 a day feels small ₹30,000 a month feels manageable ...

Can One Smart Mutual Fund SIP Pay Your Term Insurance for Life? What if your term insurance premium never touched your salary again - ever? What if a simple mutual fund plan could permanently take care of it? What Will You Learn How to make your term insurance premium self-funded How SIPs can convert an expense into a lifelong system The exact corpus needed when the premium is constant using clients' data How much SIP you should start today Why discipline matters more than returns First, One Important Clarity Term insurance premium is constant If you pay ₹45,000 per year today , it remains ₹45,000 forever There is no yearly increase This makes planning much easier and safer The Real Question Investors Ask “Can my mutual fund profits alone pay my term insurance premium for my entire life?” The answer is YES with the right structure . Client Details (To Respect Privacy, Name & Location is hidden)  Current Age: 42 Target Age to Ma...