One Monday morning, Mr. Mehta walked in looking like someone who had just received a big wedding gift but didn’t know where to keep it safely.
“I have ₹20 lakh after selling an old property,” he said. “I want to invest it… but I’m scared of doing it too fast. Markets go up, down, spin around — I can’t figure out what to do.”
I smiled. “Relax, Mr. Mehta. You know what your situation reminds me of? Having a huge bucket of water and trying to empty it into a small bottle. If you pour it all at once, everything spills. But a slow, steady pour keeps things clean.”
He laughed. “That explains my financial mess perfectly.”
And so we began…
Step 1: Choosing the Right ‘Parking Spot’ — Like Finding a Place for Extra Bags
“Think of your ₹20 lakh like luggage you’ve brought back from a long trip,” I said. “Before arranging it in the cupboards, where do you keep it?”
He thought for a second.
“Usually in the guest room or store room.”
“Exactly! You don’t dump the suitcases directly into your wardrobe. Similarly, before sending the money to equities, you park it safely.”
So we explored three “rooms”:
1. Liquid Funds → The ‘Guest Room’
Like a spare room where you keep things temporarily — clean, safe, and easy to access.
Perfect if:
- You plan to start investing soon.
- You want zero tension.
2. Arbitrage Funds → The ‘Locker’
Like putting jewellery in a locker instead of a regular cupboard. Same safety, but smarter tax-wise, especially for high taxpayers.
Good for parking the luggage for a few months.
3. Ultra-Short Funds → The ‘Store Room’
Not visited often but secure.
Ideal when the wait is slightly longer.
Mr. Mehta laughed, “So basically, you’re telling me not to scatter the ₹20 lakh all over my financial house!”
“Exactly,” I said.
“Let’s keep it neatly in one room until we’re ready.”
Step 2: Entering the Market Slowly — Like Merging Into Traffic
“Now imagine driving onto a busy main road,” I continued.
He nodded.
“You don’t blast your car into traffic. You merge slowly, right?”
“That’s true.”
“That slow merging is what we call an STP — Systematic Transfer Plan.”
I explained:
- If the market is like a calm road → merge over 6 months
- If it’s like peak-hour traffic → merge over 12–18 months
- If there’s a sudden traffic lull (market correction) → merge faster
“It’s just common sense,” I added.
“Even Google Maps won’t tell you to accelerate blindly.”
He chuckled, “I didn’t know investing had so much in common with driving.”
Step 3: Avoiding Everyday Mistakes — Like Grocery Shopping When Hungry
“Mr. Mehta,” I said, “Have you ever gone grocery shopping when hungry?”
His eyes widened. “Worst idea ever! I buy half the store.”
“Exactly! Investing everything at once when markets look exciting is the same mistake.”
Some examples:
Mistake 1: Waiting for the perfect price
Like waiting for the perfect mango in summer.
You keep waiting… and the season ends.
Mistake 2: Stopping midway because the market dips
Like stopping your morning walk just because it rained one day.
It breaks the routine.
Mistake 3: Investing all ₹20 lakh in a single shot
Like adding all spices at once while cooking —
chances of messing up are high.
He laughed so loudly the receptionist looked inside.
Step 4: The Plan That Gave Him Relief
“So let me summarise,” I said.
“Your ₹20 lakh will first rest safely — just like luggage waiting to be unpacked.
Then, month by month, it will slowly move into equity funds, like merging into traffic without honking or panic.”
He leaned back.
“You know… this finally makes sense in everyday terms. Investments always felt like rocket science, but you made it sound like managing my own home.”
“That’s the truth,” I replied.
“Good investing is usually just good housekeeping.”
And That’s How Mr. Mehta’s Journey Began
He left with:
- A calm mind
- A clear plan
- And confidence that came from simple rules, not market predictions.
The ₹20 lakh wasn’t a burden anymore.
It had become a well-behaved guest, ready to settle into a long-term home — one month at a time.
Simplified Money Talks 