The Chinese Bamboo Tree teaches a lesson in patience. Like all other plants, the Chinese Bamboo Tree also needs water and sunlight.  But despite all the nurturing, the Chinese Bamboo does not show any visible signs of growth in the first four years. As in, it might not show any signs of growth above the ground, and four years is a long time to wait. You can water it without fail and ensure enough sunlight; but our Chinese mate will not sprout.

But wait, just because the tree is not showing any outward sign of growth, does it mean that it has not grown at all? Were all the efforts towards nurturing the tree over the years in vain? It will certainly appear so. You might be tempted to quit. After all, four years is a long time. But if you were to hold onto your patience for just a little longer, you will witness a miracle.

In its fifth year the same Chinese Bamboo Tree grows 80 feet tall in just six weeks! Finally, after five long years you can reap the fruits of your patience. Absence of any upward sign of growth doesn’t imply a complete lack of growth. Though there is no growth above the ground, underneath, with steady supply of water and sunshine, the Chinese Bamboo Tree develops a root system to support it above the ground and that’s what makes it special.

In this age of instant gratification patience is not really considered a virtue.  Everyone wants everything done as of yesterday. Outcome and benefits of steps taken today are expected instantly. Anything that doesn’t give instantaneous results is just not worth our time, effort or money. Unfortunately, this holds true for both our professional and personal lives.

We even treat our investments with the same impatience and expect them to grow multi-fold overnight.  Investment in SIPs of mutual funds is akin to watering the Chinese Bamboo Tree where patience is the sunlight. You need to keep investing in small amounts regularly and patiently watch how compounding works to potentially create a large corpus over longer time frames.

The gut wrenching market volatility, the intermittent sharp dips, the sudden peaks, and return charts may either frustrate or tempt you to make an early exit but it’s important to hold on. You just need to stick to consistency and longevity to enable the tree of SIP to grow!

Information contained in this article is not a complete representation of every material fact and is for informational purposes only. The recipient is advised to consult its advisor/ tax consultant prior to arriving at any investment decision.