Chapters 11, 12 · Acting in a Certain Way · Efficient Action
This is Article 5 of the “Science of Getting Rich × Mutual Funds” series on rahulmoney.com
There is a particular kind of investor who spends six months researching mutual funds before investing a single rupee. They compare expense ratios across 20 schemes. They study 10-year return charts. They read Reddit threads and watch YouTube videos. They are fully informed — and completely stuck.
There is another kind of investor who picks a well-known flexi-cap fund, starts a Rs. 3,000 monthly SIP, and simply continues for the next 15 years without changing anything. They are probably not spending much time thinking about their investments at all.
After 15 years, the second investor is almost certainly wealthier — not because they picked a better fund, but because they acted.
Acting in a certain way
Wallace Wattles devotes Chapter 11 to what he calls “acting in a certain way” — the idea that it is not enough to think correctly or plan correctly. You must act. And the action must be done in a specific manner: efficiently, with full attention, and without delay.
In the context of mutual fund investing, acting in a certain way means: deciding clearly, starting promptly, automating completely, and reviewing periodically. Every one of these steps matters. The most important is starting.
The 80/20 of fund selection
Chapter 12 of the book is about efficient action — doing the right things in the right way, rather than doing everything. This is excellent investing advice.
Most investors who never start are stuck in over-analysis. The research paralysis is real. But the truth about fund selection for a long-term SIP investor is much simpler than the internet makes it seem.
For most salaried investors, a combination of three fund types covers 80% of needs:
- A large-cap index fund (Nifty 50 or Nifty 100) for stability and low cost — expense ratio typically under 0.2%.
- A flexi-cap or multi-cap fund for diversification across market capitalisations with active management.
- A mid-cap fund for higher long-term growth potential, suitable for goals that are 10+ years away.
You do not need 8 funds. You do not need sector funds, thematic funds, or international funds to begin. You need a plan, a consistent SIP amount, and the discipline to leave it alone.
The efficient investor: Researches enough to make a sound decision. Acts on that decision promptly. Reviews annually, not daily. Avoids churning — switching funds constantly based on recent performance. Lets compounding work without interference.
The SIP ritual
Beyond the mechanics, there is something to be said for treating your monthly SIP as a ritual — a non-negotiable financial act that happens on the same day every month, as automatic and unquestioned as paying rent.
The investors who build the most wealth are not necessarily the most sophisticated. They are the most consistent. Show up every month. Let the market do the rest.
Mutual Fund investments are subject to market risks. Please read all scheme related documents carefully before investing. ARN: 351164 | rahulmoney.com