If You Know The Stock market ... Try SIP in Stocks Directly
A small investment of Rs. 10,000 a month over a period of 10
years can help you create a corpus of Rs. 25 lakhs. Total amount invested over
period of 10 years by you will be Rs. 12 lakhs and you will have profit of Rs.
13 lakhs. Not Good? This might look less to you as we are assuming returns of
13.5% per annum. If we assume returns of 27% per annum, your corpus will be Rs.
50 lakh and your profits would be more than 3 times of your actual investments
that too when you are investing a nominal amount of Rs. 10,000 on monthly
basis. Impressive! Right?
You might think that investing in mutual funds could be one
of the way to start SIP (Systematic Investment Plan). However, returns may not
be that high which you can generate by directly investing into good quality
small and mid cap stocks. Hence, we suggest our members to start SIP by
directly investing in stocks every month. What you are suppose to do is to
invest your savings in a particular stock once in a month instead of putting it
into mutual fund. Next month, same amount would be invested in another stock
which at that point of time gives you good medium to long term investment
opportunity. This could be an ideal choice for salaried employees as well as
businessmen / entrepreneurs, as it will help you to directly invest in
fundamentally strong small and mid cap companies to build a diversified
portfolio of high quality small and mid cap stocks over a period of time to
achieve wealth creation.
Investing in stocks is a great way to build your diversified investment portfolio. It is a simple and time tested approach for accumulation of wealth in a disciplined manner. Simply get some savings from your monthly income and invest in equities for long term. It not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.
Investing in stocks is a great way to build your diversified investment portfolio. It is a simple and time tested approach for accumulation of wealth in a disciplined manner. Simply get some savings from your monthly income and invest in equities for long term. It not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.
Invest some portion of your monthly income in
good companies without timing the stock market and you will definitely
get rewarded in long run.
Just take care of Basic Principle of Investing in
Equities:
1. Invest in stock market with a long term view (3 - 7
years or more).
2. Invest in companies which are fundamentally strong
with scalable business.
3. Follow disciplined approach by Investing regularly in
equities.
4. Build a diversified portfolio by investing in small
& mid cap companies.
5. Avoid frequent buying / selling of stocks, Its trading
not Investing!
6. Review performance of your holding companies at least
once a year to decide whether to buy / sell or hold.
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