Four years as shareholder of Motherson Sumi System Limited

Four years ago I didn’t know what Motherson Sumi System Limited was and what it did. The only reason I invested in it was that 100+ other mutual funds had invested in it. If so many mutual funds have invested in it, then the company must be good. That was the only research I did. 

After learning about some thing called as “dollar cost averaging”, I invested more amount when the price fell. After the price fell even more I stopped investing as I learned something called as “don’t try to catch a falling knife”. 

It has been a roller coaster ride on this one. In the crash of Mar-Jun 2020 the worth of my investment was just 30%. And in the subsequent months it recovered and returned to positive value after almost 3 years. 

Return

Profit

XIRR

NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed more minimum of 1 year.