A man asked the shopkeeper. “Sir, how far is the next village and how long will it take to reach?” The shopkeeper began to walk alongside the man to show him the way. “Please don’t bother yourself,” the man said. I’m only interested in the distance. “I can go alone,” he said, continuing to walk with the man. After 15 minutes, he said, “It will take you two hours to get to the village,” to which the man replied, “You could have told me that earlier!” “There was no need to walk with me,” he responded, “how could I estimate the time without knowing your walking speed?” The time it takes to walk the distance is determined not by the length of the road, but by the speed of the walker. You can also run to get there faster.”
The investment horizon or time to reach your goals is the distance to travel when investing. The amount of money you invest determines your speed, and the condition of the road (market) determines the returns you generate. Excellent roads (markets) can help you arrive on time or earlier. Bad/hilly roads (volatile markets) increase the risk and time required to achieve your objectives. If you don’t know the route and the weather is unpredictable, start early to ensure you arrive on time. Starting late and driving fast in bad weather to make up for lost time only adds to the danger. For example, if you want to save Rs.50 lakh, you can begin a SIP of Rs.5000 per month and invest for 20 years at a 12% annual return. However, if you want to achieve this goal in ten years, you will need to invest more than Rs.21,000. So, if you have a long journey ahead of you, start early to beat the traffic and enjoy the sunrise and morning fresh air. It is not only important to arrive at your destination, but also to enjoy the journey.