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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